types of investment in economics class 12

This often leads to the misallocation and wastage of the scarce resources. The following arguments are given in favour of subsidy: 1) Subsidy is very important for marginal land holders and poor farmers who cannot avail the essential farm inputs at the ongoing market rate. This guide takes you through: Getting ready to invest, including goal setting and understanding the impact of cost and risk. Before appearing in the main examination, candidates must try mock test as it helps the students learn from their mistakes. Investment decisions by manufacturers, such as whether to buy new machinery, rely to a large extent, on the market place rate of interest. 2) Subsidy in 1960s was basically an incentive for the farmers to adopt modern techniques and vital inputs like fertilisers, HYV seeds, etc. Lending Investments. 3. Bank, Banker’s Bank. Class 12 Economics provides a broad degree of illustrative examples, which help the students to comprehend and learn quickly. Your email address will not be published. Multiplter Additional investment (ΔI), generates additional income (ΔY), but income generated is many times more than the investment.Multiplier is the ratio between increase in income (ΔY) and increase in investment (ΔI) . With the use of modern technology, extensive use of fertilisers, pesticides and HYV seeds there was a significant increase in the agricultural productivity and product per farm land. You will also love the ad-free experience on Meritnation’s NCERT Solutions. 4. Co-operative Farming: This step was taken to counter the problems due to sub-division of holdings. Thus that activity is done to earn money therefore that is an economic activity. .fnt { All questions and answers from the NCERT Book of Class 12 Commerce Economics Chapter 2 are provided here for you for free. Soon after independence, India faced an important choice to opt either for capitalism or socialism. Q.10-Will Ex-ante Saving Always Be Equal to the Ex-ante Investment? Downloads for CBSE Class 12 Economics. Consumption Function It means a functional relationship between total consumption and total disposable income.Thus, C = f (y)C = Consumptiony= Income, 4. Marketable surplus refers to the difference between the total output produced by a farmer and his on-farm consumption. The common feature of these three systems was that the land was mostly cultivated by the tenants and the land revenues were paid by them to their landlords. Bigger the infrastructure facilities, greater the opportunity for the producers to invest more. Production function – Short-Run and Long-Run. 4) It is argued that the adoption of new technology and techniques are not risk free and only daring farmers are only willing to adopt them. Therefore, to conclude, it can be said that growth with equity is the most important objective of an economic planning. Demand, market demand, determinants of demand, demand schedule, demand curve and its slope, movement along and shifts in the demand curve; price elasticity of demand – factors affecting price elasticity of demand; measurement of price elasticity of demand - (a) percentage change method and (b) geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure. Subsidies provide a protective shield against the market conditions and, consequently, these industries need not to bother about their market share and competition. In other words, only a few with high level of living and money income may get the share of GDP. NCERT Solutions, NCERT Exemplars, Revison Notes, Free Videos, CBSE Papers, MCQ Tests & more. It was very difficult for the private sector to invest such a big amount. Q.9-What Do You Understand by Ex-post Saving? The Planning Commission (1950) was established with the motive that the government would undertake comprehensive planning for the nation as a whole, where public sector would lay down the basic economic framework and would encourage private sector for their active contribution to the economic growth. Plan without goal is like life without soul. Copyright © The shortage of these facilities in underdeveloped countries is the main cause of less economic development. Investment is elucidated and defined as an addition to the stockpile of physical capital such as: i.e. Government provides various financial encouragements, incentives, licenses to the domestic producers to produce domestically the import substituted goods. Explain in brief. The monetary assistance given by government for production activities. text-transform: none; In fact both modernisation and employment generation are positively correlated. Socialist Track: In the initial years after independence, Indian planners and thinkers were more inclined towards socialist pattern. Raju: So Dad, I was just thinking about Hotel Ashoka…. This led to the exploitation of tenants in the form of exorbitant rents. A plan is a proposed list of goals that an economy wants to achieve within a specific period of time. 030) Under Employment Equilibrium It refers to that situation in the economy when AS = AD but without the fuller utilisation of labour force. Learners may work upon the following lines as a suggested flow chart: Choose a title/topic HYV seeds grow faster than the normal seeds and, consequently, crops can be harvested in a much shorter time period. Frequent Occurrence of Famines: Famines in India were very frequent during the period 1940s to 1970s. In Class 11 we had studied the basic fundamental aspects of the subject. Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) - at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income; Real and Nominal GDP. So there is a need to maintain a balance among different goals. Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map) and conditions of consumer's equilibrium.

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