Introduction — Economics STD 12 Humanities & Commerce — Question

What does the problem ‘for whom to produce’ refer to?

Explain how 'non-monetary exchanges' are a limitation in taking gross domestic product as an index of welfare.

What is excess demand in macroeconomics?

Assume that the market price of US dollar was increased considerably leading to rise in price of the imports of essential goods. What can central bank do to ease the situation?

Giving reason, classify the into normal resident of India or not.
Indians going to Pakistan for watching the cricket match.

From the following data, calculate “gross value added at factor cost”.

S.No.		Rs.(in lakhs)
1.	Sale.	180
2.	Rent.	5
3.	Subsidies.	10
4.	Change in Stock.	15
5.	Purchase of raw materials.	100
6.	Profits.	25

Give the meaning of normal goods and inferior goods. Give examples in each case.

OR

Explain the difference between an inferior good and a normal good.

Given the linear demand curve, q = 10 - 2p, calculate the quantity demanded at p= 1.

Giving reason, classify the into normal resident of India or not.
A Japanese tourist who stays in India for 2 months.

Consider a market with two firms. The following table shows the supply schedules of the two firms: the SS1 column gives the supply schedule of firm 1 and the SS2 column gives the supply schedule of firm 2. Compute the market supply schedule.

Price (Rs)	SS1 (units)	SS2 (units)
0 1 2 3 4 5 6	0 0 0 1 2 3 4	0 0 0 1 2 3 4