Introduction — Economics STD 12 Humanities & Commerce — Question

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

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

Classify the into consumer, intermediate or capital goods.
Construction of a house.

Explain the allocation function of a government budget.

Find net value added at factor cost:

S.No.	Particular	(Rs. Lakh)
	Durable use producer goods with a life span of 10 years	10
	Single use producer goods	5
	Sales	20
	Unsold output produced during the year	2
	Taxes on production	1

Explain the role of government budget in bringing economic stability.

Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium:

National Income	=	₹ 500
Marginal Propensity to Save	=	0.30
Investment expenditure	=	100

Distinguish between gross investment and net investment.

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

The saving curve of an economy makes an intercept on negative axis at ₹ 50 crore and 20% of additional income is saved. Find out the consumption function.

An economy is in equilibrium. Its national income is ₹ 5,000 and autonomous consumption expenditure is ₹ 500. What is the total consumption expenditure if marginal propensity to consume is 0.7?