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

What is meant by inferior good in economics?

Give reasons for the following statements:

1. Every economy has to make the decision relating to what to produce.
2. Problem of choice arises because available resources have alternative uses.

Why is gross domestic product at factor cost more than the net domestic product at factor cost?

Draw TFC, TVC and TC curves in a single diagram.

What does deficit in capital accounts indicate?

The price of 1 US Dollar has fallen from ₹ 50 to ₹ 45. Has the Indian currency appreciated or depreciated?

Define intermediate goods.

In a government budget, revenue deficit is Rs. 50,000 crores and borrowings are Rs. 75,000 crores. How much is the fiscal deficit?

Give the meaning of excess supply of a product.

Will the following items be included or not in National Income of India? Give reason for your answer.
Salaries received by the Indian employees working in America embassy.