Introduction — Economics STD 12 Commerce — Question

Giving reasons, state whether the following statements are true or false.

1. When MPC is zero, the value of investment multiplier will also be zero.
2. Value of Average Propensity to Consume can never be less than zero.

Suggest different ways by which capital budget deficit can be reduced without borrowings.

Which among the following are final goods and which are intermediate goods? Give reasons.

1. Milk purchased by a tea stall.
2. Bus purchased by a school.
3. Juice purchased by a student from the school canteen.

Distinguish between real and nominal gross domestic product.

Net National Product at Factor Cost of a particular country in a year is Rs. 1,900 crores. There are no interest payments made by the households to the firms/ government, or by the firms/ government to the households. The Personal Disposable Income of the households is Rs. 1,200 crores. The personal income taxes paid by them is Rs. 600 crores and the value of retained earnings of the firms and government is valued at Rs. 200 crores. What is the value of transfer payments made by the government and firms to the households?

Why is the study of the problem of unemployment in India considered a macro economic study?

Distinguish between stocks and flows. Give an example of each.

Distinguish between real and nominal GDP. Which of these is a better indicator of economic welfare?

As a result of increase in investment by ₹ 60 crore national income rises ₹ 240 crore. Calculate the marginal propensity to consume.