Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Will a profit-maximising firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.

Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.

Out of factor income and transfer income which one is a unilateral concept?

List the three different ways in which oligopoly firms may behave.

Consider a market with two firms. In the following table, columns labelled as SS₁ and SS₂ give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.

Price (Rs)	SS1 (kg)	SS2 (kg)
0 1 2 3 4 5 6 7 8	0 0 0 1 2 3 4 5 6	0 0 0 0 0.5 1 1.5 2 2.5

'Developing countries have constraints'. Do you agree?

Calculate the value of money multiplier and total deposit created if initial deposit is of ₹ 1,000 crore and LRR is 20%.

Explain the central problem “what to produce.”

Find gross value added at market price:

		(Rs. lacs)
(i)	Depreciation	20
(ii)	Domestic sales	200
(iii)	Net change in stocks	(-)10
(iv)	Exports	10
(v)	Single use producer goods	120

Define frictional and structural unemployment.