Introduction — Economics STD 12 Humanities & Commerce — Question

State the meaning and components of money supply.

If price of a commodity falls from ₹ 50 per unit to ₹ 45 per unit, its supply falls from 1000 units to 800 units. Find out its elasticity of supply.

Calculate National Income by (a) Income method and (b) Expenditure method from the following data:

S.No.	Contents	₹ (in crore)
(i)	Interest	150
(ii)	Rent	250
(iii)	Government Final Consumption Expenditure	600
(iv)	Private Final Consumption Expenditure	1,200
(v)	Profit	640
(vi)	Compensation of Employees	1,000
(vii)	Net Factor Income to Abroad	30
(viii)	Net Domestic Capital Formation	340
(ix)	Net Exports	(-)40
(x)	Net Indirect Taxes	60

Giving reason, classify the into stock or flow.
Money supply.

What is aggregate demand? State its components.

A firm supplies 500 units of a good at a price of Rs5 per unit. The Price Elasticity of Supply of a good is 2. At what price will the firm supply 700 units?

A consumer buys 40 units of a commodity at price ₹ 5 per unit and the price elasticity of demand is -1.5. Calculate the amount he will buy at price ₹ 4 per unit of the commodity.

How is the GST going to be administered?

Identify the following as extension, contraction, increase or decrease in demand.

1.  

Price (₹)	Demand (units)
10	20
12	15

2.  

Price (₹)	Demand (units)
10	20
10	15

3.  

Price (₹)	Demand (units)
12	15
10	20

4.  

Price (₹)	Demand (units)
10	20
10	30

Distinguish between explicit cost and implicit cost.