(i) Perfectly Elastic Demand (E_p = \(\infty\))
(ii) Perfectly Inelastic Demand (E_p = 0)
(iii) Relatively Elastic Demand (E_p > 1)
(iv) Relatively Inelastic Demand (E_p < 1)
(v) Unitary Elastic Demand (E_p = 1)

Longevity (measured by life expectancy at birth), Educational attainments, and Standard of living (measured by real GDP per capita).

(i) The plan aimed to double the per capita income of India in the next 10 years.
(ii) It aimed to reduce the poverty ratio to 15 % by 2012.
(iii) Its growth target was 8.0 % but it
achieved only 7.2%.

(i) The iso-cost line must be tangent to iso-quant curve,
(ii) At point of tangency, the iso-quant curve must be convex to the origin.

MP is the addition made to the total product when one more unit of the inputs employed.
MP =\(\Delta \)TP / \(\Delta \)N or MP = TP(n) - TP(n-1)

Labour represents services provided by the factor labour, which helps in yielding an income to the owner of the labour power. - Marshall.

It is an area in which business and trade laws are different from rest of the country mainly aiming at increasing trade, investment and job creation.

Disinvestment means selling of government securities of public sector undertakings to other PSUs or private sectors or banks.

Personal - Different prices are charged for different individuals. (eg) railway
Geographical - Different prices are charged at different places for the same product.

Expenditure involved in selling the product is selling cost. (eg) advertisement. Selling cost changes the position of the demand curve.

A person who has no power to fix the price of the product is a price taker. A seller in perfect competition is a price taker.

(i) Positive science deals with what it is.
(ii) It is concerned with how and why.

(i) Goods are tangible, (eg) car but services are intangible (eg) goodwill.
(ii) Goods can be stored but services cannot be stored.

(i) Micro economics studies economic actions of small group of individuals, a household, firm or industry
(ii) It covers value theory and theory of economic welfare.

Liquidity preference means the preference of the people to hold wealth in the form of liquid cash rather than in non-liquid assets like bonds, securities, gold, building.

(i) Interest is a payment made by a borrower to the lender for the money borrowed.
(ii) It is the price paid for the use of capital.

Rent is that portion of the produce of the earth which is paid to the landlord for the use of the original and indestructible powers of the soil" David Ricardo.

Distribution means division of income among the four factors of production in terms of rent to landlords, wage to labourer, interest to capital and profit to entrepreneurs.

A cost incurred in the past and cannot be recovered anymore in future, once invested it is treated as drowned or disappeared.

Payment made to others for the purchase of factors of production is known as explicit cost. It is also called accounting cost or out of pocket cost.

Payment for fixed factors is fixed cost. Fixed factors cannot be changed in the short period. Even if there is no output fixed cost is incurred. (eg) rent of the factory.

Cost refers to cost of production i.e. the total expenses incurred in the production of a commodity. Cost depends on output, scale of production, prices of factors.

Sen's 'Choice of Technique' was a research work where he argued that in a labour surplus economy, generation of employment cannot be increased at the initial stage by the adoption of capital-intensive technique.

(i) India is a mixed economy where agriculture is the main occupation.
(ii) The human capital is young and its economy is one of the most stable in the world.

High national income, per capita, standard of living, level of technology, industrialization, consumption level, level of urbanisation. (any two)