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

Giving reasons, state whether the following statements are true or false.
Economy always operates on PPC.

The demand for a commodity always increases with increase in the prices of other goods. True or false?

Giving reasons, state whether the following statements are true or false.
If a PPF shifts to the right, the new PPF will be parallel to the original.

Purchase of government securities by the central bank in the open market is an appropriate policy to check depression in the economy. (True/ False)

Giving reasons, state whether the following statements are true or false:
Depreciation of domestic currency encourages exports.

Fiscal policy has a direct effect on producing sector of the economy. (True/ False)

Giving reasons, state whether the following statements are true or false:
If the supply curve is a vertical straight line, change in demand will not affect equilibrium price.

Giving reasons, state whether the following statements are true or false:
In case of excess demand, equilibrium price is less than prevailing price.

Giving reasons, state whenever the following statements are true or false:
With increase in level of output, Average Fixed Cost goes on falling till reaches zero.

Cirular flow of income takes place in case of open economy and close economy.