Question

Give economic terms: (i) A desire which is backed by willingness to purchase and ability to pay.
(ii) Deposits that are withdrawable on demand.
(iii) Wear and tear of capital assets, due to their use in the process of production.
(iv) Elasticity resulting from a proportionate percentage change in the quantity demanded due to a proportionate percentage change in price.
(v) The difference between the value of a country’s exports and imports for a given period.

Hint:

Economic terms often define key concepts and measurements in economics, and understanding them is crucial for analyzing market behavior and international trade.

Answer 1

(i) A desire which is backed by willingness to purchase and ability to pay.
\(\textbf{Answer:}\) Effective Demand.
(ii) Deposits that are withdrawable on demand.
\(\textbf{Answer:}\) Demand Deposits.
(iii) Wear and tear of capital assets, due to their use in the process of production.
\(\textbf{Answer:}\) Depreciation.
(iv) Elasticity resulting from a proportionate percentage change in the quantity demanded due to a proportionate percentage change in price.
\(\textbf{Answer:}\) Price Elasticity of Demand (PED).
(v) The difference between the value of a country’s exports and imports for a given period.
\(\(\textbf{Answer:}\)\) Balance of Trade.