With the help of a diagram, explain this property of Indifference Curve (1C) 'High 1C offers higher level of satisfaction'. |
or |
Differentiate between substitute goods and complementary goods. |
'During economic depression, consumer's equilibrium shifts leftward'. Explain. |
or |
Explain the impact of fall in price of good X on consumer's equilibrium, when a consumer consumes only two goods, i.e. X and Y, using indifference curve approach. |
(i) A fall in the price of substitute goods |
(ii) A fall in the income of its buyer. |
Output (units) | Total Cost (TC)(Rs.) | Total Variable Cost (TVC)(Rs.) | Marginal Cost(MC)(Rs.) | |
0 | 12 | ............. | ............. | |
1 | 18 | ............. | ............. | |
2 | 21 | ............. | ............. |
Labour | 1 | 2 | 3 | 4 | 5 | 6 |
Average Product | 10 | 12 | 14 | 12 | 10 | 8 |
(i) If the ratio of MPC and MPS is 4: 1, the value of investment multiplier will be 4. |
(ii) Sum of APC and MPC is always equal to 1. |
(i) When MPC is zero, the value of investment multiplier will also be zero. |
(ii) Value of APS can never be less than zero. |
Explain the flow variables of injections and leakages along with suitable examples. |
or |
Give the meaning of real flow and money flow. |
(i) Margin requirements |
(ii) Moral suasion |
(i) Give three points of difference between intermediate goods and final goods. |
(ii) Classify the following as intermediate good or final good: |
[a] Car purchased by a taxi-operator for business use. |
[b] Pen purchased by a retail dealer for selling in shop. |
[c] Milk purchased by a sweet-maker for making sweets. |
S. No | Items | (Rs.) in crores |
(i) | Interest | 600 |
(ii) | Rent | 1,000 |
(iii) | Government Final Consumption Expenditure | 2,400 |
(iv) | Private Final Consumption Expenditure | 4,800 |
(v) | Profits | 2,560 |
(vi) | Compensation of Employees | 4,000 |
(vii) | Net Factor Income of Abroad | 120 |
(viii) | Net Indirect Taxes | 240 |
(ix) | Net Exports | 160 |
(x) | Consumption of Fixed Capital | 200 |
(xii) | Net Domestic Formation | 1,360 |
(i) What do you mean by fixed exchange rate system? Explain any two advantages of the system. |
(ii) Explain accommodating items of BoP. |
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