Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Explain the ‘acceptance of deposits’ function of a commercial bank.

What is meant by inflationary gap? State three measures to reduce this gap.

A firm fixed average cost of producing 2 units of a good is Rs.9 and its total cost schedule is given below. Calculate average variable cost and marginal cost for each of given level of output.

Output (Units)	1	2	3
Total Cost (₹)	23	27	30

Government spends on child immunization programme. Analyse its impact on Gross Domestic Product and welfare of the people.

Government incurs expenditure to popularise yoga among the masses. Analyse its impact on gross domestic product and welfare of the people.

Read the passage given below and answer the following questions from 1 to 4.
In the Government of India's budget for the year 2013 - 14, the Finance Minister proposed to raise the Goods and Services Tax (GST) on cigarettes. He also proposed to increase income tax on individual earning more than rupee one crore per annum.

1. Identify the taxes proposed to be increased by the Budget 2013 - 14. The taxes proposed are:

1. Goods and Services tax on cigarettes.
2. Income tax on individuals earning Rs. 1 crore or above.
3. Both [a] and [b]
4. None of the above

2. What was the objective(s) behind the proposals put forth in the Budget 2013 - 14?

1. Revenue generation
2. Social welfare
3. Both [a] and [b]
4. None of these

3. What welfare objective the government wishes to achieve by increasing GST on cigarettes?

1. This will discourage their cigarettes
2. This will encourage their cigarettes
3. Both [a] and [b]
4. None of the above

4. What would be the effect of increase in direct tax on the rich?

1. It will reduce the gap between rich and the poor, thereby reducing inequalities in income
2. It will increase the gap between rich and the poor
3. Both [a] and [b]
4. None of the above

Complete the following table:

Output (Units)	Average Variable Cost (Rs.)	Total Cost (Rs.)	Marginal Cost (Rs.)
1	-	60	20
2	18	-	-
3	-	-	18
4	20	120	-
5	22	-	-

Explain the circular flow of income through a diagram.

Explain 'Government's Bank' function of Central Bank.

OR

Explain 'banker to the government' function of the Central Bank.

Explain the impact of fall in price of good X on consumer's equilibrium, when a consumer consumes only two goods, i.e. X and Y, using Indifference Curve approach.