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

If the Nominal Gross Domestic Product - ₹ 4,400 and the Price Index (base=100) 100, calculate the Real Gross Domestic Product.

Differentiate between Normal Goods and Inferior Goods.

Discuss the working of the adjustment mechanism in the following situations:

1. Aggregate demand is greater than Aggregate supply.
2. Ex-ante Investments are lesser than Ex-ante Savings.

A consumer consumes only two goods A and B and is in equilibrium. Show that when price of good B falls, demand for B rises. Answer this question with the help of utility analysis.

The market demand for a good at ₹ 5 per unit is 50 units. Due to increase in price, the market demand falls to 30 units. Find out the new price if the price elasticity of demand is (-)2.

Explain the effects of a 'price ceiling'.###Explain the effects of 'maximum price ceiling' on the market of a good. Use diagram.

Find out average variable cost in:

Total Output (Units)	Total Cost (Rs)
0	120
1	180
2	200
3	210
4	230
5	270
6	360

Explain how a fall in the price of related goods affect the demand for a given good. Give examples.

OR

A consumer consumes good X. Explain the effect of fall in the price of related goods on the demand of X. Use diagrams.

Calculate net value added at factor cost from the following data:

S. No.		(₹in lakhs)
(i)	Purchase of machinery to be used in the production unit.	100
(ii)	Sales.	200
(iii)	Intermediate costs.	90
(iv)	Indirect taxes.	12
(v)	Change in stock.	10
(vi)	Excise duty.	6
(vii)	Stock of raw material.	5

What is ex-Ante consumption? Distinguish between autonomous consumption and induced consumption.