Economics : 2014 : CBSE : [Delhi] : Set – I

If unemployment is reduced, it would increase production of output and income leading to rightward shift in production possibility frontier. It indicates better utilization of resources as the economy can produce more goods and services with the increased labour.

A budget set is defined as the attainable combinations of two goods, given the prices of the goods and income of the consumer.

Revenue refers to the money receipts of a firm from the sales of its output.

Returns to a factor means the change in the physical output of a good when the quantity of one variable factor of production is increased keeping all the other factors constant. It is a short term phenomenon.

Perfect oligopoly refers to the oligopoly market situation in which the firms produce homogeneous products.

Demand deposits refer to those deposits of commercial banks which can be withdrawn from the bank on demand or by writing the check anytime.

Involuntary unemployment refers to the situation in which a worker in willing to work at the prevailing wage rate but does not get any work.

Marginal propensity to consume is defined as the ratio of change in consumption to the change in the income.

A government budget is an annual statement showing the estimated receipts and expenditure of the government during a financial year.

Balance of trade refers to the difference between the value of imports and exports of the physical or visible goods.