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

How can budgetary policy be used inequalities of income?

What is a market economy?

What is Marginal Rate of Transformation? Explain with the help of numerical example.

Calculate Net National Product at Market Price from the following data:

S.No.	Contents	₹ (in crore)
(i)	Net Factor Income from Abroad	(-5)
(ii)	Private Final Consumption Expenditure	100
(iii)	Personal Tax	20
(iv)	Gross National Disposable Income	170
(v)	Government Final Consumption Expenditure	20
(vi)	Corporation Tax	15
(vii)	Gross Domestic Capital Formation	30
(viii)	Personal Disposable Income	70
(ix)	Net Exports	(-)10
(x)	Savings of Private Corporate Sector	5
(xi)	Net National Disposable Income	145

Is deficit budget a sign of government inefficiency?

A consumer consumes only two goods X and Y. At a consumption level of these two goods, he finds that the ratio of Marginal utility to price in case of X is lower than in case of Y. Explain the reaction of the consumer through utility analysis.

OR

A consumer consumes only two goods X and Y and is in equilibrium. Price of X rises. Explain the reaction of the consumer with the help of utility analysis.

OR

By spending his entire income only on two goods X and Y, a consumer finds that Explain how will the consumer react?

Outline the steps taken in deriving Consumption Curve from the Saving Curve. Use diagram.

Distinguish between change in supply and change in quantity supplied. Which of these causes a shift of supply curve?

Define Production Possibilities Curve. Explain why it is downward sloping from left to right.

What are the impacts or effects of deficient demand on price (output) employment?