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

Why is Average Revenue always equal to price?

Explain the allocation function of a government budget.

A firm supplies a certain quantity of a good at a price of 10 per unit. When price changes to 9 per unit, the firm supplies 10 units less. Price Elasticity of Supply is 1. What is the quantity supplied before price change?

How progressive tax structure can help in reducing inequality of income?

"Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country." Defend or refute the given statement with valid reason.

OR

Explain how distribution of gross domestic product is a limitation in taking GDP as an index of welfare.

OR

Explain how inequalities of income are a limitation of GDP as an index of welfare.

OR

How does increase in inequalities in distribution of income affect welfare of society? Explain.

Explain the impact of increase in supply of foreign exchange on price of foreign exchange, using suitable diagram.

What would be the shape of the demand curve so that the total revenue curve is:

1. a positively sloped straight line passing through the origin?
2. a horizontal line?

There are large number of sellers in a perfectly competitive market. Explain the significance of this feature.

Giving examples, explain the meaning of cost in economics.

What are the effects of 'price-floor' (minimum price ceiling) on the market of a good? Use diagram.