Introduction — Economics STD 12 Humanities & Commerce — Question

Which among the following are final goods and which are intermediate goods? Give reasons:

1. Milk purchased by a tea stall.
2. Bus purchased by a school.
3. Juice purchased by a student from the school canteen.

Define intermediate consumption and explain it with an example. How is it different from final consumption?

Explain what happens to the profits in the long run if the firms are free to enter the industry.

Giving reason, classify the into intermediate or final goods.
Coal used by consumer households.

When price of a good is ₹ 12 per unit, the consumer buys 24 units of that good. When price rises to ₹ 14 per unit, the consumer buys 20 units. Calculate Price Elasticity of Demand.

Explain the ‘banker to the government’ function of the central bank.

The coefficient of PES is 3. A seller supplies 30 units of this commodity at a price of ₹ 10 per unit. How much quantity of it will he supply when its price rises by 12%.

Explain the effects of 'maximum price ceiling' on the market of a good. Use diagram.

Give meaning of “Return to a Factor”.

As a result of increase in investment, National Income rises by ₹ 600 crore. If Marginal Propensity to consume is 0.75, calculate the increase in investment.