ASHISH TUTORIALS

BELIEVES IN HARDWORK – PROCESS – QUALITY IN EDUCATION

ADD: - Shop No. A2, Diamond Park, Datta Mandir Road, Vakola, Santacruz East, Mumbai - 400055

Identify and explain the following concepts

1. Madhav collected information about monthly expenditure. (September 2021)

(A) Identified concept : Study of individual economic unit.
(B) Explanation of concept : The study of economic behaviour of a particular unit by isolating it from the other
forces of economy is known as the study of individual economic unit. For example, microeconomics deals with
the study of individual economic units such as individual firm, individual price, etc.

2. Pooja satisfied her need of writing an essay by using pen and notebook. (September 2021)
or
Manisha satisfied her want of writing an essay by using pen and notebook. (March 2024)
(A) Identified concept : Utility.
(B) Explanation of concept : Utility refers to the capacity of a commodity to satisfy a human want.

3. There are many firms producing soaps in India. (September 2021)

(A) Identified concept : Monopolistic Competition
(B) Explanation of concept :Monopolistic competition refers to competition among a large number of sellers
producing close but not perfect substitutes.

4. Ramesh prepared share price index number. (September 2021)

(A) Identified concept : Special purpose index number.
(B) Explanation of concept : Special purpose index number is constructed with same specific purpose to
measure change in specific variable in an economy over a period of time.

5. Fall in price of sugar by 50% results in 50% rise in demand. (September 2021)
or
When the price of apples falls by 10% Vinay increases his demand for apples by 10%. (July 2024)
(A) Identified concept : Unitary elastic demand.
(B) Explanation of concept : When the proportionate change in the price of a commodity brings about exactly
equal proportionate change in its quantity demanded, the demand is said to be unitary elastic

6. Asha collected the information about the income of a particular firm (March 2022)
or
Savita Collect Information About Individual Income In A Particular Firm. (July 2023)
(A) Identified concept : Study of individual economic unit.
(B) Explanation of concept : The study of a particular economic unit by isolating it from the other forces of
economy is known as the study of individual economic unit. For example, microeconomics deals with the study
of individual economic units such as individual firm, individual price, etc.

7. Ramesh’s demand for salt remained unchanged inspite of a 10% rise in its price. (March 2022)
(A) Identified concept : Perfectly inelastic demand.
(B) Explanation of concept : When the proportionate change in the price of a commodity brings no (zero)
proportionate change in its quantity demanded, the demand is said to be perfectly inelastic.

8. Out of 4000 kgs of rice the farmer offered to sale 1000 kgs of rice in the market at `40 per kg. (March 2022)

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 ASHISH TUTORIALS
BELIEVES IN HARDWORK – PROCESS – QUALITY IN EDUCATION
ADD: - Shop No. A2, Diamond Park, Datta Mandir Road, Vakola, Santacruz East, Mumbai - 400055

(A) Identified concept : Supply.

(B) Explanation of concept : Supply refers to the quantity of a commodity offered for sale at a given price and
at a given point of time.

9. Shobha collected data regarding the money value of all final goods and services produced in the country
for the financial year 2019-20. (March 2022)
(A) Identified concept : Measure of national income by product method.
(B) Explanation of concept : Measurement of national income by summing the monetary values of all final
goods and services produced in a particular financial year is a measure of national income by product method.

10. Lucy deposited a lumpsum amount of ` 1,00,000/- in the Bank of India for the period of one year. (March
2022)
or
Meena Deposited A Lumpsum Amount Of ₹ 1,50,000 In The Bank, For a period Of One Year. (July 2023)
or
Madhuri deposited a lumpsum amount of ` 1,00,000 in the bank for the period of five years. (July 2024)
(A) Identified concept : Fixed deposit.
(B) Explanation of concept : A fixed deposit is a type of time deposit in which the saver deposits a certain
amount in the form of a deposit in a commercial bank for a fixed period of time and he can withdraw the
amount from the deposit after a specified period.

11. Salma purchased sweater for her father in winter season. (July 2022)
(A) Identified concept : Time utility.
(B) Explanation of concept : Utility increased/derived by changing the time of utilisation of a commodity is
called time utility.

12. Sanket’s demand for consumer goods increased by 20% due to an increase in his income by50%. (July
2022)
(A) Identified concept : Income elasticity of demand.
(B) Explanation of concept : Income elasticity of demand can be defined as the percentage change in the
quantity demanded of a commodity in response to a percentage change in the income of the consumer only

13. Anita receives monthly pension of ₹ 15,000/- from the State Government. (July 2022)
or
Prakash Receives Monthly Pension Of ₹ 15,000 /- From the State Government. (July 2023)
or
Jagruti receives monthly pension of `5,000 from the state government. (March 2024)
or
Sunita receives monthly pension of ` 30,000 from the state government. (July 2024)
(A) Identified concept : Transfer income.
(B) Explanation of concept : If the expenditure incurred by another person/ organisation is received by an
individual in the form of income without any form of productive work, then such income is called ‘transfer
income’.

14. John produces 5 units of mobile in his factory at ₹ 50,000. When he produced the 6thunit ofmobile total
cost was ₹ 58,000. (July 2022)

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SUBJECTS
 ASHISH TUTORIALS
BELIEVES IN HARDWORK – PROCESS – QUALITY IN EDUCATION
ADD: - Shop No. A2, Diamond Park, Datta Mandir Road, Vakola, Santacruz East, Mumbai - 400055

(A) Identified concept : Marginal cost.

(B) Explanation of concept : Marginal cost is the net addition made to total cost by producing one more unit of
output.

15. Samir paid wages to workers in his factory and interest on his bank loan. (July 2022)
(A) Identified concept : Payment of factor price/reward.
(B) Explanation of concept : The factors of production, viz. land, labour, capital and entrepreneur are essential
for the production of goods. These factors of production get rewards in the form of rent, wages, interest and
profit, respectively from the producer for participating in the production process.

16. A table seller sold the table for ` 2,000 per piece. In this way he sold 15 tables and earned `30,000.
(March 2023)
(A) Identify concept : Total Revenue
(B) Explanation of concept : Total revenue (TR) is the total sales proceeds of a firm by selling a commodity at a
given price. It is the total income of a firm

17. England imported cotton from India, made readymade garments from it and soldthem to Malaysia.
(March 2023)
(A) Identify concept :Entrepot Trade
(B) Explanation of concept : The process of possessing goods imported from one country and exporting them
to another country is called entrepot trade

18. Ashok paid the tax on his income and property. (March 2023)
or
Ramakant paid an income tax of Rs. 80,000 during the financial year 2021-2022. (July 2024)
(A) Identify concept: Direct Tax
(B) Explanation of concept: A tax which is levied on the income or property of an individual and so in which the
impact and incidence of tax on same heads is called direct tax

19. Raju’s father invests his money in a market for long term funds both equity and debt raised within and
outside the country. (March 2023)
(A) Identify concept :Capital Market
(B) Explanation of concept :A market for long term funds both equity and debt raised within and outside the
country is called capital market

20. A poor person wants to buy a car. (March 2023)

(A) Identify concept : Simple Desire
(B) Explanation of concept : Desire means wish to have something or feeling of wanting something very much.
The desire become demand which is backed by purchasing power, abilty to pay and willingness to pay. A poor
person desire to purchase a car but does not have the adequate purchasing power. It will be simple desire and
not a demand. All desire cannot be same.

21. India Purchase Petroleum From Iran. (July 2023, July 2024)
(A) Identified concept : Import trade.
(B) Explanation of concept : Purchase of goods and services by one country from another country is called
import trade.

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SUBJECTS
 ASHISH TUTORIALS
BELIEVES IN HARDWORK – PROCESS – QUALITY IN EDUCATION
ADD: - Shop No. A2, Diamond Park, Datta Mandir Road, Vakola, Santacruz East, Mumbai - 400055

22. Price Of Self Increased By ₹ 20 To ₹ 50, Still There Is no Change In Demand For Salt. (July 2023)
(A) Identified concept : Perfectly inelastic demand.
(B) Explanation of concept : When the proportionate change in price of a commodity brings no (zero)
proportionate change in the quantity demanded, the demand is said to be perfectly inelastic. The numerical
value of perfectly inelastic demand is zero.

23. Raghu’s father invested his money in a market for long term funds both equity and debt raised within
and outside the country. (March 2024)
(A) Identified concept : Capital Market
(B) Explanation of concept : Capital market is a market for long term funds both equity and debt raised within
and outside the country. Hence, this relates to 'long term funds' as Raghu's father regularly invests his money in
long term funds both equity and debt raised within and outside the country.

24.Due to mandatory use of masks during corona epidemic the demand for mask producing labour has
increased. (March 2024)
(A) Identified concept : Labour demand
(B) Explanation of concept : This concept illustrates the direct relationship between product demand and
labour demand. Specifically, the mandatory mask policies during the COVID-19 epidemic led to a surge in
demand for masks.

25. Maharashtra purchased wheat from Punjab. (March 2024)

(A) Identified concept- Internal trade.
(B) Explanation of Concept - The buying and selling of goods and services within the boundaries of a nation are
referred to as internal or domestic trade. So the above illustration relates to the concept of internal trade as
Maharashtra purchased wheat from Punjab.

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