Introduction — Economics STD 12 Humanities & Commerce — Question

What is the law of variable proportions?

Individual demand schedule and Market demand schedule.

With the same amount of resources, a farmer can feed the following combinations of goats and cows:

Option	Goats	Cows
I	188	64
II	170	70

With the given options, what is the opportunity cost of the farmer feeding one cow?

Calculate (a) Net Domestic Product at Factor Cost and (b) Gross National Disposable Income from the following data:

S.No.	Contents	₹ (in crore)
(i)	Net Current Transfers from Rest of the World	(-)60
(ii)	Net Factor Income from Abroad	(-)40
(iii)	Government Final Consumption Expenditure	2,000
(iv)	Private Final Consumption Expenditure	6,000
(v)	Net Domestic Fixed Capital Formation	800
(vi)	Gross Domestic Capital Formation	950
(vii)	Change in Stock	50
(viii)	Net Exports	(-)50
(ix)	Profits	1,000
(x)	Net Indirect Tax	700

Give meaning of an Economy.

Explain the meaning of ‘increase in supply’ and ‘increase in quantity supplied’ with the help of a schedule.

Match List I (exchange rate change ) with List II (Nomenclature):

S.No.	List- Exchange rate change	List-II Nomenclature
1.	Lowering of the value of a country's currency in terms of other currencies.	Appreciation.
2.	Decline (or fall) in the value of a country's currency in terms of other currencies.	Devaluation.
3.	Increase in the value of country's currency in terms of other currencies.	Depreciation.

What is excess demand? Explain any two fiscal measures to correct excess demand.

What are open market operations? How do these work as a method of credit control?

What is meant by circular flow of income?