If in an economy :

Change in Initial Investment (ΔI) = Rs. 1,200 crores

Marginal Propensity to Save (MPS) = 0.2

Find the values of :

(a) Investment Multiplier (k)

(b) Change in final income (ΔY)

Explain the law of equi-marginal utility.

OR

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

Complete the following cost schedule :

(a) How are tax receipts different from non-tax receipts? Discuss briefly.

(b) State any two items of revenue expenditure in a Government budget.

Given the following data, find the missing values of ‘Gross Domestic Capital

Formation’ and ‘Wages and Salaries’.