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

State four sources of supply of foreign exchange.

OR

What are the sources for supply of foreign exchange?

Give the relationship between the revenue deficit and the fiscal deficit.

Explain with the help of an example, the basis of classifying goods into final goods and intermediate goods.

Find net value added at factor cost:

S.No.	Particular	(Rs. Lakh)
	Durable use producer goods with a life span of 10 years	10
	Single use producer goods	5
	Sales	20
	Unsold output produced during the year	2
	Taxes on production	1

Explain issue of currency function of Central Bank.

What are the main precautions required to be taken in estimating national income by the value added method?

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

In India unemployment is a major problem, If aggregate demand is equal to aggregate supply, can it be called a situation of equilibrium?

A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 5 and 4 respectively. The prices of X and Y are 4 per unit and 5 per unit respectively. Is the consumer in equilibrium? What will be the further reaction of the consumer? Explain.

State whether the following statements are true or false. Give reasons for your answer.

1. AVC can fall even when MC is rising.
2. The difference between TC and TVC falls with increase in output.
3. As soon as MC starts rising, AVC also starts rising.