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

Given below is a cost and revenue schedule of a producer. At what level of output is the producer in equilibrium? Give reasons for your answer:

Output (units)	Price (₹)	Total Cost (₹)
1	10	13
2	10	22
3	10	30
4	10	38
5	10	47
6	10	57
7	10	71

Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.

Explain the concept of 'excess demand' in macroeconomics. Also, explain the role of 'open market operation' in correcting it.

State three characteristics of monopolistic competition. Which of the characteristics separates it from perfect competition and why?

Elaborate three main features of monopoly form of market.

Explain the relation between:

1. Marginal Revenue and Total Revenue.
2. Marginal Revenue and Average Revenue.

If the demand curve of a commodity shifts to the right and the supply curve shifts to the left, what will be the effect on equilibrium price and quantity? Illustrate with a diagram.

Explain the following features of perfect competition:

1. Large number of buyers and sellers.
2. Homogeneous products.

In an economy, investment increased by 1,100 and as a result of it income increased by 5,500. Had the marginal propensity to save been 25 percent, what would have been the increase in income?

Calculate net domestic product at factor cost and net national disposable income from the following:

		(Rs. Arab)
(i)	Net current transfers to abroad	5
(ii)	Government final consumption expenditure	100
(iii)	Net indirect tax	80
(iv)	Private final consumption expenditure	300
(v)	Consumption of fixed capital	20
(vi)	Gross domestic fixed capital formation	50
(vii)	Net imports	(-)10
(viii)	Closing stock	25
(ix)	Opening stock	25
(x)	Net factor income to abroad	10