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

Giving reason, classify the into stock or flow.
Business capital of business.

In an economy an increase in investment by Rs. 100 crore led to‘increase’ in national income by Rs. 1000 crore. Find marginal propensity to consume.

Explain the meaning of diminishing returns to Para factor. Why do diminishing returns to a factor occur?

Complete the following table:

Income	Marginal Propensity to Consume	Saving	Average Propensity to Save
0	-	-90	-
100	0.75	-	-
200	0.75	-	-
300	0.75	-	-

A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 3 and 4 respectively. Prices of X and Y are Rs. 4 per unit each. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons.

When price of a good falls by 10%, its quantity demanded rises from 40 units to 50 units? Calculate Price Elasticity of Demand by percentage method.

A consumer has ₹ 40 and both goods X and Y are priced at ₹ 20 and are available in integer units. (a) Give the bundles that this consumer can afford (b) give the bundles that cost exactly ₹ 40.

Define average propensity to save and marginal propensity to save. Can the value of average propensity to save be negative? Give reasons for your answer.

Explain the conditions of consumer's equilibrium under utility analysis.

Explain the impact of increase in supply of foreign exchange on price of foreign exchange, using suitable diagram.