The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Giving reasons, state whether the following statements are true or false:
There is an inverse relationship between the value of marginal propensity to save and investment multiplier.

Expenditure on interest payment is a capital expenditure. (True/ False)

Giving reasons, state whether the following statements are true or false:
An increase in supply results in a fall both in equilibrium quantity and equilibrium price.

Supply curve slopes downwards from the right to the left. (True/ False)

Giving reasons, state whether the following statements are true or false:

A fall in the price of 1 US dollar from ₹ 50 to ₹ 40 means depreciation of the Indian currency.

Giving reasons, state whether the following Its are true or false.
When marginal cost rises, average cost will also rise.

Giving reasons, state whether the following statements are true or false.
In the context of an economy when we talk about ‘scarcity', we refer to short supply of land.

Government budget is presented only by the central government in India. (True/ False)

State giving reasons, whether the following statements are true or false:
Total Product will increase only when Marginal Product increases.

Giving reasons, state whether the following statements are true or false.
Total product always increases whether there is increasing returns or diminishing returns to a factor.