National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Complete the following schedule:

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

Why do problems related to allocation of resources in an economy arise? Explain.

Give the meaning of under-employment equilibrium.

Suppose the price elasticity of demand for a good is – 0.2. How will the expenditure on the good be affected if there is a 10% increase in the price of the good?

Define multiplier. What is the relation between marginal propensity to consume and multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4.

State whether the following statements are true or false. Give reasons for your answer.

1. When Marginal Propensity to consume is greater than Marginal Propensity to Save, the value of investment multiplier will be greater than 5.
2. The value of Marginal Propensity to Save can never be negative.

What is the marginal propensity to import when M = 60 + 0.06Y? What is the relationship between the marginal propensity to import and the aggregate demand function?

Calculate Net Value Added at factor cost from the following data:

		(Rs. lakhs)
1	Depreciation.	20
2	Intermediate cost.	90
3	Subsidy.	5
4	Sales.	140
5	Exports.	7
6	Change in stock.	(-)10
7	Import of raw materials.	3

The price of a commodity is 12 per unit and its quantity supplied is 500 units. When its price rises to 15 per unit, its quantity supplied rises to 650 units. Calculate its price elasticity of supply. Is supply elastic?

If productivity of labour is 50 units and a firm has 5 workers. Calculate its total productivity.