Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Minimum level of expenditure is dependent of the level of income in the economy. (True/ False)

Giving reasons, state whether the following statements are true or false.
Consumption of food grains by farmer himself is not a part of national output.

Giving reason, state whether the following statements are true or false.
In a two-sector economy, total production is always equal to total consumption.

State whether the following statement is true or false:
‘‘Expected obsolescence is included in depreciation.’’

Giving reasons, state whether the following statements are true or false.
Exports do not form a part of domestic factor income.

Giving reasons, state whether the following statement are true or false;
When marginal propensity to consume is zero, the value of investment multiplier will also be zero.

Are the following statements true or false? Give reasons.
Expenditure made on the development of a railway line is a capital expenditure.

When AD = AS, producers suffer the burden of unwanted supplies. (True/ False)

In Keynes theory, MPC fall with an increase in income.

Giving reason, state whether the following statement are true or false.
Borrowing by government from World Bank to finance the BOP deficit will be recorded in the capital account.