Government Budget and Economy — Economics STD 12 Humanities & Commerce — Question

Define deflationary gap.

Calculate budgetary deficit from the following data:

S. No.	Items	₹(in crore)
(i)	Total expenditure	1,00,000
(ii)	Total receipts	88,000

Give the meaning of voluntary unemployment, involuntary unemployment and full employment.

If domestic income is ₹ 1,000 crore and Net Factor Income from Abroad is ₹ (-10) crore, how much will be National Income?

What is meant by consumption goods?

Explain the basis of classifying goods into intermediate and final goods. Give suitable examples.

Net National Product at Factor Cost of a particular country in a year is Rs. 1,900 crores. There are no interest payments made by the households to the firms/ government, or by the firms/ government to the households. The Personal Disposable Income of the households is Rs. 1,200 crores. The personal income taxes paid by them is Rs. 600 crores and the value of retained earnings of the firms and government is valued at Rs. 200 crores. What is the value of transfer payments made by the government and firms to the households?

An economy is in equilibrium. Its national income is ₹ 5,000 and autonomous consumption expenditure is ₹ 500. What is the total consumption expenditure if marginal propensity to consume is 0.7?

Define average propensity to save and marginal propensity to save. Can the value of average propensity to save be negative? Give reasons for your answer.

Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.