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

The difference between value of output and value added is ......

1. Depreciation.
2. Intermediate consumption.
3. Net Indirect Taxes.
4. NFIA.

Choose the correct alternative.
According to the theory of Keynesian Economics, the value of Average Propensity to Consume can never be ________.

1. Zero.
2. Unity.
3. More than one.
4. Less than one.

The following table show the production of cricket bats and sarees of an imaginary economy:

Production of Cricket Bats (thousand)	0	1	2	3	4	5
Production of Sarees (in lakh)	75	70	62	50	30	0

If the production of cricket bats is increased from 3 thousand to 4 thousand, how much production of sarees will he to be sacrificed by the economy?

1. Zero.
2. 8 lakh sarees.
3. 30 lakh sarees.
4. 20 lakh sarees.

Which of the following item will not be included while calculating national income by the value added method?

1. Owner-occupied Houses.
2. Own-account Production of fixed capital.
3. Production for self-consumption.
4. Voluntary work.

AR is also known as:

1. Price.
2. Income.
3. Revenue.
4. None of these.

The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except:

1. When total product is rising, average and marginal product may be either rising or falling.
2. When marginal product is negative, total product and average product are falling.
3. When average product is at its maximum, marginal product equals average product, and total product is rising.
4. When marginal product is at a maximum, average product equals marginal product, and total product is rising.

...... involves discounting or purchasing of commercial bills arising out of credit sales.

1. Cash credit.
2. Bill financing.
3. Overdraft.
4. None of these.

Identify the item which is not a factor payment:

1. Free uniforms to defense personnel.
2. Salaries to the members of Parliament.
3. Imputed rent of an owner occupied a building.
4. Scholarships given to the students of scheduled caste.

Entry is restricted under:

1. Perfect competition.
2. Monopoly.
3. Monopolistic competition.
4. All of the above.

If the average cost is falling:

1. Marginal cost is rising.
2. Marginal cost is falling.
3. Marginal cost is equal to average cost.
4. It is impossible to tell if marginal cost is rising or falling.