Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

Give examples of macroeconomics theory.

If the value of investment multiplier is 4 then find the value of marginal propensity to consume (MPC).

A consumer consumes good X. Explain the effects of fall in prices of related goods on the demand of X.

Giving reasons, state why the following two conditions must be satisfied when a consumer is in equilibrium.

1. A budget line must be tangent to an indifference curve.
2. Marginal rate of substitution must be diminishing.

Explain the implications of the following:
The feature ‘differentiated products’ under monopolistic competition.

Mention the various cases in which equilibrium price remains same.

Giving reasons, classify the following into intermediate and final goods:

1. Machines purchased by a dealer of machines.
2. A car purchased by a household.

How does giving incentives for exports influence foreign exchange rate? Explain.

Distinguish between the nominal exchange rate and the real exchange rate. If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.

Complete the following table:

Output (units)	Total Revenue (₹)	Marginal Revenue (₹)	Average Revenue (₹)
1	__	__	8
2	__	4	__
3	15	__	__
4	8	__	__