Given the following data, find the missing values of ‘Private Final

Consumption Expenditure’ and ‘Operating surplus’.

If in an economy :

Change in initial investments (∆I) = ` 700 crores

Marginal Propensity to Save (MPS) = 0.2

Find the values of the following :

(a) Investment Multiplier (k)

(b) Change in final income (∆Y)

How are capital expenditure different from Revenue expenditure? Discuss briefly.

Good X and Good Y are complementary goods. If the price of Good X increases, discuss briefly its likely impact on the demand for Good Y.

OR

If the income of a consumer increases, discuss briefly its likely impact on the demand for a normal good, Good X.

Explain the law of equi-marginal utility.

OR

State and discuss the conditions of consumer’s equilibrium under the ordinal approach.