Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Net National Product at Factor Cost of a particular country in a year is Rs. 1,900 crores. There are no interest payments made by the households to the firms/ government, or by the firms/ government to the households. The Personal Disposable Income of the households is Rs. 1,200 crores. The personal income taxes paid by them is Rs. 600 crores and the value of retained earnings of the firms and government is valued at Rs. 200 crores. What is the value of transfer payments made by the government and firms to the households?

Explain the components of LRR.

OR

Explain the distinction between SLR and CRR.

What change in Total Revenue will result in case of:

1. Decrease in Marginal Revenue.
2. Increase in Marginal Revenue.

1. Number of substitutes
2. Nature of the commodity

How does an increase in the rate of excise duty affect the supply of a good?

OR

 What is the likely effect on the supply of a good if a unit tax is imposed on that good? Explain.

Give the meaning of Consumer equilibrium.

The value of the nominal GNP of an economy was Rs. 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs. 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?

Calculate TR, MR and AR.

Price (₹)	4	5	6	7
Units sold	1	2	3	4

Giving reasons, explain the treatment assigned to the following while estimating National Income:

1. Payment of income tax by a firm.
2. Festival gift to employees.