Introduction — Economics STD 12 Commerce — Question

It is not only difficult but impossible to tax all those who should be taxed, in India. Why?

What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.

Is loan granted by the Central Government to a State Government, a revenue expenditure or capital expenditure? Why?

Visits to foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?

An economy is in equilibrium. Find investment expenditure:

National Income	=	1,000
Autonomous consumption	=	100
Marginal Propensity to consume	=	0.8

An economy is in equilibrium. Calculate Marginal Propensity to Consume:
National income = 1000.
Autonomous consumption expenditure = 200.
Investment expenditure = 100.

The balance of trade shows a deficit of ₹ 300 crore. The value of exports is ₹ 500 crore. What is the value of imports?

Find consumption expenditure from the following:

Autonomous consumption	=	₹ 100
Marginal Propensity to Consume	=	0.70
National Income	=	₹ 1,000

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

What is a planned economy?