Introduction — Economics STD 12 Humanities & Commerce — Question

Why is an Indifference curve generally convex to the origin?

Give two examples of microeconomic study.

In India a majority of population is lying below poverty line due to inequality of 'Income and Wealth'. How can budget be helpful in solving this problem?

Differentiate between devaluation and depreciation.

'Lack of store of value' was a major problem under barter system, but goods like diamond, gold can be easily stored for future use. Then why this was not a popular mean under barter system?

Firms under oligopoly are involved in non-price competition. Why?

Justify the following statements:

1. Factor income received from abroad is added to Domestic Product.
2. 'Factor income paid to abroad' is also added to Domestic Product.

Define deflationary gap.

Define externalities. Give an example of negative externality. What is its impact on welfare?