Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

What is firm's demand curve?

'Normal goods and inferior goods are relative terms'. Explain.

When foreign exchange rate in a country is on the rise, what impact is it likely to have on imports and how?

Discuss any three measures by which deficient demand in an economy can be corrected?

Explain the implications of the feature 'large number of buyers' in a perfectly competitive market.

In an economy the entire increase in income is saved. What will be the value of multiplier?

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

The price of a commodity rises from ₹ 5 per unit to ₹ 6 per unit. Consequently, its supply increases by 20%. Comment on PES.

A consumer has ₹ 40 and both goods X and Y are priced at ₹ 20 and are available in integer units. (a) Give the bundles that this consumer can afford (b) give the bundles that cost exactly ₹ 40.

Why should MC be rising at the point of equilibrium?

OR

Equilibrium is never struck in a situation of falling MC. Why?