Introduction — Economics STD 12 Humanities & Commerce — Question

Why comparing the GDPs of various nations might not tell you which nation is better off?

Now a days, people are using debit and credit cards for monetary transactions. As per your opinion, is credit card a form of money?

What are fixed and flexible exchange rates?

Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium:

National Income	=	₹ 2,000
Autonomous consumption expenditure	=	₹ 200
Investment expenditure	=	₹ 100

Giving reason state whether are included or excluded in/ from domestic territory.
Branch of Foreign Bank in India.

Give the meaning of average propensity to save and average propensity to consume. Can the value of average propensity to save be negative? If yes, when?

Analytically what does demonetisation comprise of?

Discuss briefly the meanings of:

1. Fixed Exchange rate.
2. Flexible Exchange Rate.

Saving provides economic security in future, but why is it not good from the viewpoint of investment multiplier?

Giving two examples, explain the relation between rise in price of a foreign currency and its demand.