Introduction — Economics STD 12 Humanities & Commerce — Question

Distinguish between intermediate products and final products. Give examples.

Explain any two merits of fixed exchange rate.

The second name of macroeconomics is price theory.

There is an increase in investment of ₹ 1,000 crore in an economy. Marginal Propensity to Consume is 0. What is total increase in income? Calculate.

Define macroeconomics.

Which among the following are capital goods and which are consumer goods and why?

1. A car used as a taxi.
2. Refrigerator in a hotel.
3. Air-conditioner in a house.

Give the meaning of (a) tax revenue, and (b) non-tax revenue. Give one example of each.

Explain the meaning of inflationary gap with the help of a diagram.

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Explain the ‘lender of last resort’ function of the Central Bank.