Production and cost — Economics STD 12 Humanities & Commerce — Question

Give two examples of macroeconomics studies.

Regulation of prices in the case of agricultural products is not only desirable but necessary. Explain.

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?

State the conditions for consumer's equilibrium given by the utility approach (in case of one and two commodities).

Investment increases by ₹ 500 crores in an economy. MPS is zero. What is the total increase in income? Calculate.

There are only two producing sectors A and B in an economy. Calculate:

1. Gross Value Added at Market Price by A and B.
2. National Income.

S.No.	Contents	₹ (in crore)
(i)	Net Factor Income from Abroad	20
(ii)	Sales by A	500
(iii)	Sales by B	600
(iv)	Indirect Tax by A and B	80
(v)	Depreciation by A and B	30
(vi)	Exports by A	45
(vii)	Net Change in Stock of A	10
(viii)	Intermediate Consumption of A	200
(xi)	Net Change in Stock of B	(-)10
(x)	Intermediate Consumption of B	300

Why is the demand curve facing a monopolistically competitive firm likely to be very elastic?

In an economy, the marginal propensity to consume is 0.75. Investment expenditure in the economy increases by Rs. 75 crore. Calculate the total increase in national income.

Explain the free entry and exit of firms' feature of monopolistic competion.

Distinguish between revenue receipts and capital receipts in a government budget. Give example in each case.