Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.
A consumer buys 18 units of a good at a price of Rs 9 per unit. The price elasticity of demand for the good is (–) 1. How many units the consumer will buy at a price of Rs 10 per unit? Calculate.
A consumer consumes only two goods. Explain consumer's equilibrium with the help of utility analysis.
A consumer consumes only two goods A and B and is in equilibrium. Show that when price of good B falls, demand for B rises. Answer this question with the help of utility analysis
State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour
From the following information about a firm, find the firms equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also find profit at this output
|Output (units)||Total Revenue (Rs)||Total Cost (Rs)|
Market of a commodity is in equilibrium. Demand for the commodity "increases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.
Explain the ‘store of value’ function of money. How has solved the related problem created by barter?
Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.
i. Expenditure on collection of taxes.
ii. Expenditure on purchasing computers
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.
Calculate national income and gross national disposable income from the following:
i. Net current transfers to abroad (-) 15
ii. Private final consumption expenditure 600
iii. Subsidies 20
iv. Government final consumption expenditure 100
v. Indirect tax 120
vi. Net imports 20
vii. Consumption of fixed capital 35
viii. Net change in stocks (-)10
ix. Net factor income to abroad 5
x. Net domestic capital formation 110
Giving reason explain how should the following be treated in estimating gross domestic product at market price?
i. Fees to a mechanic paid by a firm.
ii. Interest paid by an individual on a car loan taken from a bank.
iii. Expenditure on purchasing a car for use by a firm.
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