Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Which one of the following incomes is 'factor income from abroad' for Indian residents and why?

1. Interest income received by Indian residents on the bonds of companies operating in America.
2. Remittances by Indian settled abroad to their families in India.

A consumer consumes only two goods X and Y. At a consumption level of these two goods, he finds that the ratio of Marginal utility to price in case of X is lower than in case of Y. Explain the reaction of the consumer through utility analysis.

OR

A consumer consumes only two goods X and Y and is in equilibrium. Price of X rises. Explain the reaction of the consumer with the help of utility analysis.

OR

By spending his entire income only on two goods X and Y, a consumer finds that Explain how will the consumer react?

Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.

Give any three factors that can cause a rightward shift of demand curve.

OR

Explain any two causes of increase in demand of a commodity.

The concept of Normal Resident helps to estimate 'National Product'. Defend or refute.

Give meaning of “Return to a Factor”.

How a consumer will reach to the equilibrium point, if market rate of exchange is not equal to MRS?

During a given year the nominal national income increased by percent while the real national income increased by only 6 percent. Population increased by 2 percent. What has caused the difference between nominal income and real income? What is real per capital income?

If the demand for good Y increases as the price of another good X rises, how are the two goods related?

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