Introduction — Economics STD 12 Humanities & Commerce — Question

What is the average product of an input?

What precautions are necessary while measuring the final expenditure on Gross Domestic Product?

OR

Explain briefly five precautions required to be taken in estimating National Income by expenditure method.

Distinguish between microeconomics and macroeconomics. Give an example of each.###Distinguish between Microeconomics and Macroeconomics.

Transfer payments refer to payments which are made:

1. Without any exchange of goods and services.
2. To workers on transfer from one job to another.
3. As compensation to employees.
4. None of these.

A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 5 and 4 respectively. The prices of X and Y are Rs. 4 per unit and Rs. 5 per unit respectively. Is the consumer in equilibrium? What will be the further reaction of the consumer? Explain.

If the Real GDP is ₹ 500 and Price Index (base = 100) is 125, calculate the Nominal GDP.

Which among the following are capital goods and which are consumer goods and why?

1. A car used as a taxi.
2. Refrigerator in a hotel.
3. Air-conditioner in a house.

Is a producer in equilibrium under the following situations?

1. When Marginal Revenue is greater than Marginal Cost.
2. When Marginal Revenue is equal to Marginal Cost.

Give reasons for your answer.

At a price of ₹ 8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of supply is 1.5. If its price rises to ₹ 10 per unit, calculate its quantity supplied at the new price.