Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

Money supply in the economy includes only notes and coins issued by the central bank. (True/ False)

Which of the following statements are true or false?
Massive unemployment shifts the Production Possibility Curve to the left.

When market price of a good is more than its equilibrium price, there is a situation of excess demand. (True/ False)

Giving reasons, state whether the following statements are true or false.
If income of the buyer decreases, demand for inferior goods decreases.

Giving reasons, state whether the following statement are true or false;
Value of average propensity to save can never be less than zero.

Which of the following statements are true or false? Give reason.
An economy always produces on but not inside the PP curve.

State giving reasons, whether the following statements are true or false:
When there are diminishing returns to a factor, Total Product first increases and then starts falling?

Giving reasons, state whether the following statement are True or False.
Elasticity of supply explains qualitative relationship between supply and price of a commodity.

Supply for perishable goods is inelastic. (True/ False)

Giving reasons, state whether the following statements are true or false.
Price elasticity of demand explains qualitative relationship between price and demand.