Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | Distinguish between a centrally planned
Distinguish between a centrally planned economy and a market economy.
| S.No. | Points of Difference | Centrally Planned Economy | Market Economy |
|---|---|---|---|
| 1 | Ownership of factors of production. | Factors of production are publicly owned; i.e., public ownership. | Factors of production are privately owned. |
| 2 | Production Motive | The motive of production is social welfare. Factors of production are publicly owned; i.e., public ownership. | The main motive is profit making. |
| 3 | Governing Factor | The production is governed by a planning mechanism; i.e. according to the government plans. | The production is governed by price mechanism; i.e., by demand and supply. |
| 4 | Income Distribution | The degree of inequality of income is low. | There exists unequal distribution of income. |
| 5 | Government’s Role | The main role is played by the government – from production to distribution. | The main role is played by private players. They decide what to produce, while the role of a government is limited to maintaining law and order in the nation. |
More Questions From Class 12 Micro Economics - Chapter Introduction to Micro Economics
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Distinguish between microeconomics and macroeconomics.
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Popular Questions of Class 12 Micro Economics
- Q:-
Explain the concept of a production function
- Q:-
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?
- Q:-
Explain market equilibrium.
- Q:-
What are the characteristics of a perfectly competitive market?
- Q:-
What do you mean by the budget set of a consumer?
- Q:-
What is the total product of input?
- Q:-
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
-
- Q:-
When do we say that there is an excess demand for a commodity in the market?
- Q:-
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
- Q:-
The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity are given in the schedules below.
Quantity
0
1
2
3
4
5
6
7
8
Price
52
44
37
31
26
22
19
16
13
Quantity
0
1
2
3
4
5
6
7
8
Price
10
60
90
100
102
105
109
115
125
Use the information given to calculate the following:
(a) The MIR and MC schedules
(b) The quantities for which MIR and MC are equal
(c) The equilibrium quantity of output and the equilibrium price of the commodity
(d) The total revenue, total cost and total profit in the equilibrium
- Q:-
Suppose a consumer wants to consume two goods which are available only in
integer units. The two goods are equally priced at Rs 10 and the consumer’s
income is Rs 40.
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40. - Q:-
Explain through a diagram the effect of a rightward shift of both the demand and supply curves on equilibrium price and quantity.
- Q:-
The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
- Q:-
Comment on the shape of MR curve in case when TR curve is a
(a) Positively sloped straight line
(b) Horizontal straight line
- Q:-
Explain the concepts of the short run and the long run.
- Q:-
How are the equilibrium price and quantity affected when?
(a) Both demand and supply curves shift in the same direction?
(b) Demand and supply curves shift in opposite directions?
- Q:-
What do you mean by complements? Give examples of two goods which are complements of each other.
- Q:-
How do the equilibrium price and the quantity of a commodity change when the price of input used in its production changes?
- Q:-
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
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