If Real GDP is Rs. 200 and Price Index (with base = 100) is 110, calculate Nominal GDP.
Real GDP = (Nominal GDP/ Price Index of Current Year)*100 = Rs 200 (given)
Price index = 110
Hence, 200 = (Nominal GDP/110)* 100
Therefore, Nominal GDP = (200*110)/100 = 220
State the different phases of changes in Total Product and Marginal Product in the Law of Variable Proportions. Also show the same in a single diagram.
Why is the equality between marginal cost and marginal revenue necessary for a firm to be in equilibrium? Is it sufficient to ensure equilibrium? Explain.
Market for a good is in equilibrium. The demand for the good 'increases'. Explain the chain of effects of this change.
Borrowing in government budget is
Revenue deficit
Fiscal deficit
Primary deficit
Primary deficit
Other things remaining unchanged, when in a country the price of foreign currency
rises, national income is (choose the correct alternative)
Likely to rise
Likely to fall
Likely to rise and fall both
Likely to rise and fall both
Name the broad categories of transactions recorded in the 'capital account' of the Balance of Payments Accounts.
OR
Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts.
