ICSE Class 12 Economics Syllabus Overview

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Questions and Answers

What is the meaning of demand in microeconomic theory?

  • The quantity of a good or service that consumers are willing and able to buy at a given price (correct)
  • The quantity of a good or service that producers are willing to supply at a given price
  • The amount of money consumers are willing to pay for a good or service
  • The total amount of a good or service available in the market

What does the Law of Diminishing Marginal Utility state?

  • An increase in income will lead to an increase in the quantity demanded for normal goods
  • As a consumer consumes more units of a good, the additional satisfaction derived from each additional unit decreases (correct)
  • Consumers will always prefer more of a good to less
  • As the price of a good increases, the quantity demanded also increases

What is the difference between stock and supply in the context of economics?

  • Stock and supply are synonymous and can be used interchangeably
  • Stock refers to the quantity of a good available at a specific point in time, while supply refers to the total amount available over a period of time (correct)
  • Stock refers to the total amount of a good available over a period of time, while supply refers to the quantity available at a specific point in time
  • Stock refers to the quantity of a good demanded by consumers, while supply refers to the quantity produced by firms

What is the meaning of market equilibrium in microeconomics?

<p>A state where the quantity demanded equals the quantity supplied at a specific price level (C)</p> Signup and view all the answers

What is the importance of understanding elasticity of demand in economics?

<p>It helps in predicting how changes in price will affect the quantity demanded of a good (A)</p> Signup and view all the answers

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