Introduction — Economics STD 12 Commerce — Question

Can the value of APC be greater than unity? If yes, when?

Classify the into consumer, intermediate or capital goods.
Services of a private doctor purchased by a consumer household.

Classify the into consumer, intermediate or capital goods.
Bread and butter used by a consumer household.

How can Government budget be helpful in altering distribution of income in an economy? Explain.

Give meanings of -

1. Aggregate demand.
2. Aggregate supply.
3. Excess demand.

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

There is an increase in investment of ₹ 1,000 crore in an economy. Marginal Propensity to Consume is 0. What is total increase in income? Calculate.

Which of the following transactions item is a debit/ credit in the current account of Balance of payment? Give reasons for your answer.

1. Exports of merchandise.
2. Imports of services.
3. Lending to the rest of the world.
4. A gift from foreigners.

Explain the meaning of Managed Floating Exchange Rate.

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