Introduction — Economics STD 12 Humanities & Commerce — Question

When price of a good is ₹ 13 per unit, the consumer buys 11 units of that good. When price rises to ₹ 15 per unit, the consumer continues to buy 11 units. Calculate price elasticity of demand.

Giving reasons, explain the treatment assigned to the following while estimating national income.

1. Expenditure on maintenance of building.
2. Expenditure on adding a floor to the building.

What is the difference between ex ante investment and ex post investment?

Giving reason, classify the into intermediate or final goods.
Purchase of rice by a grocery shop.

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

Give the formula to measure Price Elasticity of Demand.

Classify the into durable, non-durable, semi-durable or service.
Refrigerator.

Calculate ‘private income’ from the following data:

S.No.		(Rs. crores)
1	National debt interest.	30
2	Gross national product at market price.	400
3	Current transfers from government.	20
4	Net indirect taxes.	40
5	Net current transfers from the rest of the world.	(-)10
6	Net domestic product at factor cost accruing to government.	50
7	Consumption of fixed capital.	70

Distinguish between direct taxes and indirect taxes. Give an example of each.

'Fiscal deficit requires the government to borrow', discuss.