Introduction — Economics STD 12 Humanities & Commerce — Question

Explain "primary deficit' in a government budget. What does it indicate?

Define capital goods.

In an economy, aggregate demand is greater than aggregate supply. Explain the changes that will take place in this economy.

Distinguish between real and nominal gross domestic product.

Explain the concept of 'deficit' in balance of payments.

Price elasticity of demand of a good is (-) 1. At a given price the consumer buys 60 units of the good. How many units will the consumer buy if the price falls by 10 percent?

Giving reason, classify the into stock or flow.
Exports.

Price elasticity of demand of a good is (-)1. When its price per unit falls by one rupee, its demand rises from 16 to 18 units. Calculate the price before change.

"Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country." Defend or refute the given statement with valid reason.

OR

Explain how distribution of gross domestic product is a limitation in taking GDP as an index of welfare.

OR

Explain how inequalities of income are a limitation of GDP as an index of welfare.

OR

How does increase in inequalities in distribution of income affect welfare of society? Explain.

What is opportunity cost? Explain with the help of a numerical example.