Introduction — Economics STD 12 Humanities & Commerce — Question

Explain the basis of classifying taxes into direct and indirect tax. Give examples.

Explain ‘large number of buyers and sellers' as a feature of perfectly competitive market.### Explain the implications of large number of buyers in a perfectly competitive market.### Explain the implications of large number of sellers in a perfectly competitive market.

What are official reserve transactions? Explain their importance in the balance of payments.

Calculate National Income.

S.No.	Contents	₹ (in crore)
(i)	Private Final Consumption Expenditure	1,000
(ii)	Net Factor Income to Abroad	(-)20
(iii)	Net Domestic Capital Formation	300
(iv)	Government Final Consumption Expenditure	200
(v)	Net Current Transfers to Rest of the World	10
(vi)	Gross Domestic Capital Formation	350
(vii)	Net Indirect Tax	80
(viii)	Net Imports	40

In a circular flow of income, we have:

1. Production.
2. Distribution.
3. Disposition.
4. All of them.

Complete the following table:

Level of Income (₹)	400	500	600	700
Consumption Expenditure (₹)	240	320	395	465
MPC	-	-	-	-
MPS	-	-	-	-

Starting from an initial situation of consumer's equilibrium, suppose MU of rupee increases. Will it increase or decrease the quantity demanded of the product?

When price of a foreign currency rises, its supply also rises. Explain why.

If Marginal Propensity to Save is one, what is the value of multiplier? What can you say about the change in National Income, given change in investment.

Which technology of production would you prefer in rural India, a 'labour intensive' one, which would curtail the problem of unemployment to certain extent or a 'capital intensive' one, which is very highly productive in nature?