What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?
An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain
Define an indifference curve. Explain why an indifference curve is downward sloping from left to right.
When price of good is Rs7 per unit a consumer buys 12 units. When price falls to Rs6 per unit he spends Rs72 on the good. Calculate price elasticity of demand by using the percentage method. Comment on the likely shape of demand curve based on this measure of elasticity.
State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour
Explain how do the following influence demand for a good:
i. Rise in income of the consumer.
ii. Fall in prices of the related goods
Explain the conditions of a producer's equilibrium in terms of marginal cost and marginal revenue. Use diagram.
Market for a good is in equilibrium. There is simultaneous "increase" both in demand and supply of the good. Explain its effect on market price
Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply of the good. Explain its effect on market price
Define a Tax.
Calculate Gross Value Added at Factor Cost:
|i||Units of output sold (units)||1,000|
|ii||Price per unit of output (Rs)||30|
|iv.||Intermediate cost (Rs)||12,000|
|v.||Closing stock (Rs)||3,000|
|vi.||Opening stock (Rs)||2,000|
|viii.||Sales tax (Rs)||3,500|
Explain the ‘store of value’ function of money. How has solved the related problem created by barter?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.
Find national income from the following:
Autonomous consumption = Rs100
Marginal propensity to consume = 0.80
Investment = Rs 50
Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
Giving reason explain how should the following be treated in estimating national income:
i. Expenditure on fertilizers by a farmer.
ii. Purchase of tractor by a farmer.
Find out (a) national income and (b) net national disposable income:
S. No. Items (Rs crores)
i. Factor income from abroad 15
ii. Private final consumption expenditure 600
iii. Consumption of fixed capital 50
iv. Government final consumption expenditure 200
v. Net current transfers to abroad (-) 5
vi. Net domestic fixed capital formation 110
vii. Net factor income to abroad 10
viii. Net imports (-) 20
ix. Net indirect tax 70
x. Change in stocks (-) 10
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
Explain the concept of 'deficient demand' in macroeconomics. Also explain the role of Bank Rate in correcting it