National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium.

What are the average fixed cost, average variable cost and average cost of a firm? How are they related?

Elaborate three main features of monopolistic competition form of market.

A consumer consumes only two goods.

Explain the conditions of the consumer's equilibrium with the help of Utility Analysis.

OR

State and explain the condition of consumer's equilibrium in case of two commodities through utility approach.

Explain:

1. Allocation of resources.
2. Economic stability as objectives of government budget.

Explain the break-even point.

Define revenue receipts in a government budget. Explain how government budget can be used to bring in price stability in the economy.

Explain with the help of a diagram, how equilibrium level of income in an economy is determined by saving and investment curves? Will there always be full employment at equilibrium level of income?

Explain the concepts of Opportunity Cost and Marginal Rate of Transformation using a production possibility schedule based on the assumption that no resource is equally efficient in production of all goods.

Suppose a consumer can buy 6 units of good 1 and 8 units of good 2 by spending his entire income. The prices of both the items are Rs 6 and Rs 8 respectively. Find out the following -
(i) Expenditure on item 1.
(ii) Expenditure on item 2.
(iii) Total income of the consumer.
(iv) Equation of the budget line.