Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | What do you understand by normative econ
What do you understand by normative economic analysis?
Normative economic analysis refers to the analysis in which we study whether a particular mechanism is desirable or not. In this analysis, we study what ought to be the desired situation or in what ways the economic problems should be solved. In other words, it is concerned with what should be and what should not be, and what is desirable and what is not? In normative economic analysis we come across normative statements that cannot be tested as they involve personal value judgments. It deals with idealistic situations and is based on ethics. An example of a normative statement could be, ‘The Central government should not stop providing a minimum support price to the farmers’.
More Questions From Class 12 Micro Economics - Chapter Introduction to Micro Economics
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Distinguish between a centrally planned economy and a market economy.
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Distinguish between microeconomics and macroeconomics.
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What do you mean by the production possibilities of an economy?
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Discuss the subject matter of economics.
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What is a production possibility frontier?
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Discuss the central problems of an economy.
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What do you understand by positive economic analysis?
Popular Questions of Class 12 Micro Economics
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Explain the concept of a production function
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What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
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Explain market equilibrium.
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What are the characteristics of a perfectly competitive market?
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What do you mean by the budget set of a consumer?
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What is the total product of input?
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From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
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When do we say that there is an excess demand for a commodity in the market?
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How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
- Q:-
What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
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Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
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What is the total product of input?
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Can you think of any commodity on which the price ceiling is imposed in India? What may be the consequence of price-ceiling?
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The following table gives the marginal product schedule of labour. It is also given that the total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour.
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In what respect do the supply and demand curves in the labor market differ from those in the goods market?
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Explain market equilibrium.
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How is the equilibrium number of firms determined in a market where entry and exit is permitted?
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Let the production function of a firm be Q=5L1/2K1/2Q=5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of LL and 100 units of KK.
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Explain how price is determined in a perfectly competitive market with a fixed number of firms.
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Consider the demand for a good. At price Rs 4, the demand for the good is 25 units. Suppose the price of the good increases to Rs 5, and as a result, the demand for the good falls to 20 units. Calculate the price elasticity.
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