Non-Competitive Markets — Economics STD 12 Humanities & Commerce — Question

Why is a Production Possibility Curve concave to the origin? Explain.

Complete the following table:

Income	Marginal Propensity to Consume	Saving	Average Propensity to Save
0	-	-90	-
100	0.75	-	-
200	0.75	-	-
300	0.75	-	-

State whether the study of national income is Micro or Macro Economic study.

Explain the implication of 'perfect knowledge about market' under perfect competition.

Do you think that, if India imports new and advanced technology from USA (a developed country), it would solve the central problem of 'how to produce'?

Why AR curve (demand curve) under monopolistic competition is more elastic than AR curve under monopoly?

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?

Explain how rise in income of a consumer affects the demand of a good. Give example.

OR

Explain the effect of rise in a income of a consumer on his demand for a good. Use diagram.

OR

Explain the effects of increase in the income of the buyer of the good 'X' on the demand of X. Use diagram.

How can a deficit be financed?

If the total deposits created by commercial banks is ₹ 10,000 crore and legal reserve requirements is 10%, calculate the amount of initial deposits.