Introduction — Economics STD 12 Humanities & Commerce — Question

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

Out of the values of APC and APS, which one can be greater than one and when?

State the law of demand and show it with the help of a schedule.

"A day without selling costs is nearly impossible". Comment.

Define macro - economics.

‘At the initial stages of production, TVC increases at a diminishing rate'. Justify.

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 why the equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.

The data below shows the relationship between total output and the amount of labour hired at Papa's Pizza Shop

Number Workers(per day)	Total Product (Pizzas per day)
0	0
1	100
2	200
3	300
4	400
5	500

Does the production function in the above table exhibit diminishing marginal returns? Explain.

"Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country." Defend or refute the given statement with valid reason.

OR

Explain how distribution of gross domestic product is a limitation in taking GDP as an index of welfare.

OR

Explain how inequalities of income are a limitation of GDP as an index of welfare.

OR

How does increase in inequalities in distribution of income affect welfare of society? Explain.