Introduction — Economics STD 12 Humanities & Commerce — Question

Why price remains unaffected when supply curve is perfectly elastic and demand curve shifts?

State the relation between total cost and marginal cost.

What precautions are necessary while measuring the final expenditure on Gross Domestic Product?

OR

Explain briefly five precautions required to be taken in estimating National Income by expenditure method.

Distinguish between final goods and intermediate goods. Give an example of each.

Give the meaning of voluntary unemployment, involuntary unemployment and full employment.

How is equilibrium of the consumer affected in case, when MU_M is rising and P_X is constant?

Explain with the help of a numerical example, how an increase in investment in an economy affects its level of income.

Calculate Personal Income from the following data:

		(Rs. crores)
1	Undistributed profits of corporations.	20
2	Net domestic product accruing to the private sector.	500
3	Corporation tax.	55
4	Net factor income from abroad.	- 10
5	Net current transfers from government.	15
6	National debt interest.	40
7	Net current transfers from the rest of the world.	15

Giving reason, classify the into stock or flow.
Business capital of business.

Describe any two sectors of the economy from the point of view of macroeconomics.