Money and Banking — Economics STD 12 Humanities & Commerce — Question

Explain 'government’s bank' function of central bank.

Giving reasons, categorise the following into revenue receipts and capital receipts:

1. Recovery of loans.
2. Corporation tax.
3. Dividends on investments made by government.
4. Sale of a public sector undertaking.

Given that the total fixed cost is = 60, complete the following table:

Output (Units)	AVC	TC	MC
1	20	-	-
2	15	-	-
3	20	-	-

Explain the causes of a leftward shift in demand curve of a commodity.

Differentiate between Gross Domestic Product at Market Price and Net National Product at Factor Cost.

When price of a good falls from ₹ 20 to ₹ 10 per unit, producer reduces supply from 100 units to 50 units. Calculate price elasticity of supply.

Under what condition, a producer would like to supply more at a given level of price?

OR

What is increase in supply? Explain three causes of increase in supply.

OR

State factors that can cause a rightward shift of supply curve.

Explain the working of investment multiplier with the help of an example.

A consumer spends ₹ 250 on a good when its price is ₹ 5 per unit. When the price rises to ₹ 6 per unit, he spends ₹ 240. Calculate the price elasticity by percentage method.

Draw a demand curve in different market situation and also compare its elasticity of demand.