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

Explain why the equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.

Define leakages.

If the Real GDP is ₹ 400 and Nominal GDP is ₹ 450, calculate the price Index (base = 100).

When does the producer bear losses in the short-run?

Distinguish between intermediate goods and final goods. Also give examples.

OR

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

Distinguish between change in supply and change in quantity supplied. Which of these causes a shift of supply curve?

Which one of the following items comes under consumption goods?

1. Durable goods.
2. Semi-durable goods.
3. Non-durable goods.
4. All of these.

What is a budget line? Explain why is it a straight line?

Classify the into consumer, intermediate or capital goods.
Passenger bus service used by a consumer household.

Price elasticity of supply for a commodity is 5. When price of the commodity rises from ₹ 9 per unit to ₹ 10 per unit, supply rises by 25 units. Calculate quantity supplied at ₹ 9 per unit.