Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

X and Y are complementary goods. Explain the sequence of effects of a fall in the price of X on the equilibrium price and quantity of Y.

When does a production function satisfy decreasing returns to scale?

Due to a 10 per cent fall in the price of a commodity, its quantity demanded rises from 400 units to 450 units. Calculate its price elasticity of demand.

Define capital receipts of government. Describe briefly the groups in which these are classified.

Explain the meaning of inflationary gap with the help of a diagram.

Complete the following schedule:

Units Produced	TP (in ₹)	AP (in ₹)	MP (in ₹)
1	100	-	-
2	-	-	140
3	-	140	-
4	480	-	-

Explain 'mixed income of self-employed' and give an example.

What is meant by consumption goods?

Calculate National Income.

S.No.	Contents	₹ (in crore)
(i)	Private Final Consumption Expenditure	1,000
(ii)	Net Factor Income to Abroad	(-)20
(iii)	Net Domestic Capital Formation	300
(iv)	Government Final Consumption Expenditure	200
(v)	Net Current Transfers to Rest of the World	10
(vi)	Gross Domestic Capital Formation	350
(vii)	Net Indirect Tax	80
(viii)	Net Imports	40

1. Number of substitutes
2. Nature of the commodity