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

Explain the implication of large number of buyers in a perfectly competitive market.

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?

Classify the into durable, non-durable, semi-durable or service.
Edible oil.

When price of a foreign currency falls, the supply of that foreign currency also falls. Explain, why.

‘Change in demand’ and ‘change in quantity demanded’.

In an economy, Aggregate Demand is greater than Aggregate Supply. Explain the changes that will take place in this economy.

There has been consistent rise in prices of fruits and vegetables in Delhi for sometimes. Which measures of budget will you support to reduce the prices of these commodities?

Explain why an Indifference curve has a negative slope (i.e. IC slope downwards to the right).

OR

 Why is an indifference curve negatively sloped? Explain.

Assume that the market price of US dollar was increased considerably leading to rise in price of the imports of essential goods. What can central bank do to ease the situation?

There is an increase in investment of ₹ 100 crore in an economy. Marginal Propensity to Consume is 1. What can you say about total increase in the income? Calculate.