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

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.

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Demand deposits refer to those deposits of commercial banks which can be withdrawn from the bank on demand or by writing the check anytime.

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.

Marginal revenue is the addition to the total revenue by selling an additional unit of output.

Indifference map is the collection of indifference curves corresponding to different level of satisfaction.

Aggregate supply refers to the monetary value of total output available for purchase by the economy during a given period.

When a country brings down the value of its currency in terms of foreign currency by government order, it is called devaluation.