Money and Banking — Economics STD 12 Humanities & Commerce — Question

Define investment multiplier.

Does a rise in price of other goods have the same effect on demand for a commodity?

Why does an economic problem arise?### What gives rise to an economic problem?###Why does the problem of choice arise?

Define marginal revenue.

In the situation of inflation credit creation by commercial bank is beneficial for the bank but it explain its negative impact on economy.

Will the following items be included or not in National Income of India? Give reason for your answer.
Direct purchases made abroad by government on current account.

What are anti-trust legislations?

When will NDP exceed NNP?

Give reasons for the following statements:

1. A Production Possibility Frontier is always a downward sloping concave curve.
2. An efficient economy would always produce a combination of goods that lies on the given Production Possibility Frontier.
3. Growth of an economy is represented in the form of a rightward shift of a Production Possibility Frontier.

What determines the level of household consumption demand in an economy?