Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

When is there a deficit in the balance of trade?

OR

What does a deficit in balance of trade account indicate?

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.

Explain the effect of rise in input prices on supply of a commodity.

Categorize the following items into Revenue and Capital Receipts.
Statement-Loan taken from the USA for the infrastructural developments.

Categorize the following items into Revenue and Capital Receipts.
Statement-Grants received from International Monetary Fund.

How is a deficit or a surplus on the current account restored?

What are the two methods for determination of producer's equilibrium?

Will the following items be included or not in National Income of India? Give reason for your answer.
Employers provide free meals to their employees in the factory.

Give the meaning of ex-ante savings.