Production and cost — Economics STD 12 Humanities & Commerce — Question

Floods have damaged and reduced resources. Since potential production declines, the production possibility frontier shifts to the right. (True/ False)

Budget is in surplus when the last year receipts of the government greater than last years' expenditure of the government. (True/ False)

Are the following statements true or false? Give reasons.
Fiscal deficit is non-inflationary.

Giving reasons, state whether the following statements are true or false.
Economy can never operate outside PPC with the given resources and technology.

Giving reasons, state whether the following statements are true or false.
Rent received by an American from Reliance Industries with respect to building located in India will neither be included in national income nor in domestic income of India.

Giving reasons, state whether the following statements are true or false.
Measurement of national income at current prices provides a reliable base of comparison.

Giving reasons, state whether the following statements are true or false.
When price and demand fall in equal proportion, elasticity of demand is unity.

Giving reasons, state whether the following Its are true or false.
Average cost falls only when marginal cost falls.

Foreign remittances are a stock concept.

Giving reasons, state whether the following statements are true or false.
If marginal product becomes negative, average product must also become negative.