Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ________. (Choose the correct alternative)

Give any two examples of the flow concept.

Define the term ‘tax’.

What is meant by primary deficit?

OR

What is meant by fiscal deficit?

Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.

OR

“Gross Domestic Product (GDP) does not give us a clear indication of the economic welfare of a country.” Defend or refute the given statement with valid reason.