Introduction — Economics STD 12 Commerce — Question

Distinguish between microeconomics and macroeconomics.

Distinguish between ‘autonomous’ and ‘accommodating’ Balance of Payments transactions.

If consumption function for an economy is given as, C = 500 + 0.8Y and investment expenditure is ₹ 100 crore, then determine:

1. Level of income when savings will be zero.
2. Level of income at which savings are equal to investment.

State whether the study of national income is Micro or Macro Economic study.

Calculate National income or NNP at FC.

Particulars	₹ in crores
(i) GDP at MP	4,800
(ii) Indirect Taxes	300
(iii) Net Factor income from abroad	80
(iv) Consumption of Fixed Capital	200
(v) Subsidies	60

National Income = ₹ 4,440 Crores

If the total deposits created by commercial banks is ₹ 10,000 crore and legal reserve requirements is 10%, calculate the amount of initial deposits.

Central Bank has the sole authority of printing currency notes. What are its advantages?

Foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?

Giving reasons, categories the following into revenue receipts and capital receipts.

1. Dividends on investment made by government.
2. Sale of public sector undertaking.

"Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country." Defend or refute the given statement with valid reason.
OR
Explain how distribution of gross domestic product is a limitation in taking GDP as an index of welfare.

OR
Explain how inequalities of income are a limitation of GDP as an index of welfare.

OR
How does increase in inequalities in distribution of income affect welfare of society? Explain.