Economics : 2008 : CBSE : [ All India ] : Set I

The marginal rate of transformation refers to the slope of the production possibility curve at any given point.

Demand schedule refers to tabular statement that represents different quantities of a commodity demanded at different prices.

Production Function basically explains the technical or the functional relationship between physical input and physical output of a firm. It is written as follows:

Market supply means the total supply of the commodities by the entire firm in the market. It is the quantity that a seller or a producer is willing to sell in a given period of time at a given price.

The price at which demand and supply are equal is called equilibrium price. It is determined at the point where demand and supply curves intersect each other.

Aggregate supply refers to the total supply of goods and services in the economy during a particular year. It is the sum total of the consumption expenditure and the saving.

When Aggregate demand falls short of aggregate supply at full employment level, there is deficient demand. Deficient demand leads to the situation of deflation.

A commercial bank is a financial institution that performs the basic banking functions like accepting deposits from the public and making advances in the form of loans etc. to earn profits.

The government budget is an annual statement that represents the estimated receipts and the expenditures of the government over the fiscal year. The fiscal year runs from April 1 to March 31.

When the exchange rate is officially declared and it is fixed this exchange rate is said to be fixed exchange rate system.