Search Results for:

Students can Download Samacheer Kalvi 11th English Grammar Phrasal Verb, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Phrasal Verb

Question 1.
Replace the underlined phrasal verb with a single word.
Yesterday evening I ran into my uncle in the bazaar.
(a) forgot
(b) remembered
(c) lost
(d) met
Answer:
(d) met

Question 2.
Replace the underlined word with the appropriate phrasal verb.
Don’t ever mock the condition of poor people.
(a) genius for
(b) look forward to
(c) look down upon
(d) look into
Answer:
(c) look down upon

Question 3.
Replace the underlined phrasal verb with a single word.
It is really difficult to put up with a short-tempered person.
(a) oppose
(b) accept
(c) deny
(d) tolerate
Answer:
(d) tolerate

Question 4.
Replace the underlined word with the appropriate phrasal verb.
After Nagaraj lost his job, he is in trouble.
(a) enjoying
(b) in deep waters
(c) draw a blank
(d) wild goose chase
Answer:
(b) in deep waters

Question 5.
Replace the underlined phrasal verb into a single word.
However hard she tried, she could not figure out the meaning of the proverb.
(a) appreciate
(b) condemn
(c) understand
(d) faint
Answer:
(c) understand

Question 6.
Replace the underlined word with the appropriate phrasal verb.
The blind faith of people on Godmen is worrisome.
(a) take exception to
(b) matter of great concern
(c) look through
(d) put up with
Answer:
(b) matter of great concern

Question 7.
Replace the underlined phrasal verb into a single word.
Monisha takes after her dad.
(a) follows
(b) receives
(c) resembles
(d) remembers
Answer:
(c) resembles

Question 8.
Replace the underlined word with the appropriate phrasal verb.
She is searching her lost scooter.
(a) looking after
(b) looking for
(c) looking up
(d) looking into
Answer:
(b) looking for

Question 9.
Replace the underlined phrasal verb into a single word.
I am counting on you for the completion of the project.
(a) arguing
(b) supporting
(c) depending
(d) motivating
Answer:
(c) depending

Question 10.
Replace the underlined word with the appropriate phrasal verb.
The ancestral jewelry has been handed down from generation to generation.
(a) stored
(b) delivered
(c) hidden
(d) distributed
Answer:
(b) delivered

Students can Download Samacheer Kalvi 11th English Grammar Clipped Words, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Clipped Words

Question 1.
Choose the clipped word for ‘microphone’.
(a) micro
(b) mice
(c) phone
(d) mike
Answer:
(d) mike

Question 2.
Choose the clipped word for “helicopter”.
(a) heli
(b) cop
(c) copt
(d) copter
Answer:
(d) copter

Question 3.
Choose the clipped word for the word “demonstration”.
(a) demon
(b) station
(c) demo
(d) dems
Answer:
(c) demo

Question 4.
Choose the clipped word for “advertisement
(a) advent
(b) adment
(c) advertise
(d) ad
Answer:
(d) ad

Question 5.
Choose the clipped word for “memorandum i”.
(a) memes
(b) memo
(c) memory
(d) memorise
Answer:
(b) memo

Question 6.
Choose the clipped word for “diskette”.
(a) desk
(b) desket
(c) docket
(d) disc
Answer:
(d) disc

Question 7.
Choose the clipped word for “gymnasium”.
(a) gymna
(b) nasium
(c) gym
(d) masium
Answer:
(c) gym

Question 8.
Choose the clipped word for “hamburger”.
(a) burg
(b) burger
(c) bike
(d) ham
Answer:
(b) burger

Question 9.
Choose the clipped word for “laboratory”.
(a) labs
(b) labor
(c) labo
(d) lab
Answer:
(d) lab

Question 10.
Choose the clipped word for “omnibus”.
(a) Omni
(b) bus
(c) omnibus
(d) nib
Answer:
(b) bus

Students can Download Samacheer Kalvi 11th English Grammar Foreign Words and Phrases, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Foreign Words and Phrases

1. From French:

a. Avant-garde – This term applies to art, culture, and politics. It is when someone or something uses unusual or experimental ideas and challenges what people see as normal. For example, Lady GaGa is considered avant garde for her fashion choices.

b. Bon voyage – This term is generally used to express well wishes to someone who’is embarking • on a trip or journey. For example, “Have a safe trip and bon voyage ”

c. Deja vu – This is a popular phrase and at times is used incorrectly. Deja vu is the feeling that you have been through an experience or to a place before, though you never actually have. You are experiencing something for the first time, but in a way it feels familiar. “The castle gave me a sense of deja vu.”

d. Faux pas – A faux pas is an embarrassing social mistake. For example, wearing all white to a wedding at which you are not the bride. “She committed a faux pas at the wedding.”

e. RSVP – This is actually a French abbreviation for the phrase responder’s ’il Vous plait.” It literally translates as “please respond.” This is most often used on an invitation to an event.

f. Ballet – This is a form of dance that is popular all over the world. It’s important to note how the word “ballet’ is pronounced. Here you don’t pronounce the “t” at the end. Instead, the second syllable should sound like “lay,” with the same vowel sound as the letter “a”.

Example: My niece and nephew are in ballet class, so. I watched their five-hour ballet performance on Saturday. It was pretty long.

Here are a few other examples of French loanwords that end in “-et” but are pronounced like an “a” at the end: “buffet,” “gourmet,” “filet,” “chalet’ and even the car company “Chevrolet.”

g. Cafe – In English, this is the name for a small, usually informal restaurant. It often has small tables, and sometimes there are also tables outside. It- is written both with the accent mark (cafe) and without it (cafe) in English.

“Cafe” comes from the French word “coffee,” but it’s also very similar to other words related to coffee in many other languages. Usually, cafes do serve coffee, but if a place serves only coffee (and not any other food), then it’s normally called a “coffee shop.”

Also note that there’s a similar word, “cafeteria,” that causes some confusion. Generally, a cafeteria is like a small restaurant that is for a specific group of people. Cafeterias at schools or large companies are for the people who study or work there.

Example: I have only about 20 minutes for lunch, so I’ll just stop at a cafe for a quick lunch.

h. Croissant – Some of the most common loanwords are related to food. That’s because many foods are closely connected to a particular culture and other languages often don’t always have words for foods from other cultures.

A croissant is a type of pastry or bread that is light and flaky (leaves lots of little crumbs on your plate when you eat it). A similar type of bread in English is a “crescent roll.”

Example: Tina really loves to make croissants because they taste better than other types of bread.

1. Entrepreneur
This is definitely a word that you should hear pronounced, since it can be a little tricky even for native English speakers. An entrepreneur is a person who starts their own company. Other common forms of the word include “entrepreneurship” (a norm) or “entrepreneuriar (an adjective).

Example: Elon Musk, the man who started SpaceX and Tesla Motors, is one of the most famous entrepreneurs in the world.

2. From Latin
a. Alma mater – An alma mater is a school or university that one has attended or graduated from. For example, “Yale is my alma mater. ” It can also mean the school song and it literally translates as “loving mother.”

b. Quid pro quo – This term translates as “this for that.” It is used generally when two parties exchange something of value, e.g., “Criminals do not do something for nothing, there is always quid pro quo involved.”

c. Status quo – This phrase means “the existing state of affairs.” It describes what a culture or particular group deem “normal.” For example, “The government tried to maintain the status quo.’’’’

d. Genre – In French, this word means “kind” or “style.” In English, it‘s used to describe a category of something, especially when talking about entertainment. You’ll especially hear people using this word to talk about books, movies and music.

Example: Roy likes many types of music, but his favourite genre is heavy metal.

e. Rendezvous – In English, this word is used to describe either a place where people plan to meet, or the action of meeting a person at a specific time.
Example: We’re in a new city and I’m sure you all want to explore it a bit. It’s 2:00 now, so let’s rendezvous back here at 6:00. Then we’ll go for dinner.

3. From German
a. Kindergarten – Translated literally, this word means “children’s garden.” It’s a common type of school in many parts of the world. Children often go to a year or two of kindergarten when they’re five years old before they start elementary school.

Example:- Our daughter is going to turn five next year, so we’ve been trying to find a good kindergarten for her.

b. Waltz – A waltz is a type of formal dance. The word is also used to describe the type of music that plays during those dances and it can also be used as a verb to describe the action of performing this dance.

Example: My friends say that dancing the waltz is easy, but I can’t do it.

c. Rucksack – A rucksack is another name for a backpack. “Ruck” comes from the German word Riicken (back) and Sack means a bag.

Example: Alan is going to travel to Europe this summer, but he’s planning on taking one rucksack. He’ll have to pack carefully if he wants everything to fit!

d. Glitch – A glitch describes a small problem, but usually it’s a problem that doesn’t make it impossible to finish something.

Example: I planned to go downtown to meet with Betty, but I ran into & glitch: the bus wasn’t running because it was a holiday. So I just took a taxi instead.

e. Guerrilla – In Spanish, this word literally means “little war.” In both Spanish and English it can be used to describe an unofficial group of people fighting the government. In English, it’s most commonly used as an adjective, in phrases like “guerrilla warfare” or “guerrilla marketing.” Note that in Spanish, the “11” sound is different than in English. As a result, in English this word sounds basically the same as “gorilla,” the animal.

Example: The guerrilla fighters took control of the capital of the country, which gave them control of the government. .

f. Macho – This word describes a person who is very strong or masculine. It can also be used to describe a person who is arrogant about his manhood. It’s also used in the name of a professional wrestler and a popular disco song from the 1970’s.

Example: Peter is a real macho guy, but that’s annoying sometimes. He says that “real men don’t cry,” but I think he’s wrong.

g. Patio – In English, “patio” generally describes an area outside a house which often has a table and chairs, but no roof.

Example: It was very hot today, so we decided to go out to the patio to drink a cold glass of lemonade. There are some trees there, too, so the sun wasn’t as bad.

h. Plaza – A “plaza” describes a public open area in a city, which can sometimes be called a “square.” Plaza is also used in the names of many shopping malls, corporate building areas or other large open areas.

Example: Victoria needed to buy some Christmas presents for her friends, so she went downtown to the new shopping plaza to check out some of the stores,

i. Siesta – A “siesta” is a nap that one takes in the middle of the day, especially after eating or while taking a break from work.
Example: Wow, since I ate that big plate of spaghetti, now I’m feeling super tired. I think I’ll take a quick siesta before I get back to work.

4. From Japanese

a. Karaoke – It is a form of entertainment in which people take turns to sing popular songs into a microphone over pre-recorded backing tracks.

Example: David really likes singing karaoke, even though he doesn’t have an amazing voice. But that doesn’t matter—the important thing is to have fun with friends!

b. Karate – It describes a popular martial art that originated in Japan. There, the word “karate” means “empty hand,” since you don’t need any special equipment or weapons to do it.

Example: Lisa has a black belt in karate, so you’d better not try to steal her things.

c. Ninja – It means “spy” in Japanese, but in English it’s used to describe a person who can move and attack silently, without being seen. In modem use, people who can do something incredibly well are often called “ninjas.”

Example: You should try Karl’s cookies—they’re delicious! Karl is a real baking ninjal

d. Origami – Origami is the art of folding small pieces of paper into interesting shapes.

Example:
These days children are interested in learning origami. It’s good fun!

e. Tsunami – It is a gigantic (very large) sea wave that is usually caused by an earthquake. Unfortunately, the word has become more well-known ever since the 2004 south-east Asia tsunami and the 2011 Japan tsunami.

Example: The recent tsunamis in Asia killed hundreds of thousands of people.

5. From Chinese

a. Gung-ho – In Chinese this phrase means “work together,” but in English it’s used casually to express that you’re excited or enthusiastic about something. We generally use it as an adjective. Example: I was really gung-ho to eat dim sum, but when we got to the Chinese restaurant it was closed for a holiday! We were all really disappointed.

b. Kungfu – It is another popular style of martial arts. In “kung fu”, generally fighters only use their hands and feet, but not weapons.
Example: I’m tired of bullies beating me up. I’m going to learn kung fu so I can defend myself if they attack me again!

c. Tofu – This is a word that originally started in Chinese (as “dou fu”). But before it was adopted into English, it passed through Japanese and became “tofu.” In Chinese, “dou” means “bean” and “fu” means “rotten” or “sour.”

Example: This restaurant serves wonderful vegetarian dishes, especially tofu.

d. Typhoon – This word finds its origin in the Chinese word “taifeng,” which means “big wind.” A typhoon is just another name for a hurricane or a cyclone.

Example: In 2014 Typhoon Haiyan hit the Philippines and caused a lot of damage.

e. Yin and Yang – In Chinese, “yin” represents feminine, dark and night time, while “yang” represents the opposite: masculine, light and daytime things. In English, these words are used to represent any opposites.

Example: Mary is the yi/i to Peter’s .yang. They’re complete opposites, but they have a happy marriage. I guess it’s true that “opposites attract”!

6. Some Important Words from Other Languages

a. Moped (from Swedish) – “Moped” is a combination of the Swedish words “motor” and “pedaler.” Those words are nearly the same as their English equivalents “motor” and “pedals.” It’s basically a bicycle with a motor.

Example: On my last birthday, my father gifted me a moped.

b. Sheikh (from Arabic) – A “sheikh” is a ruler or leader of a group of people in Arab cultures. It’s used in English as a title for rulers in some countries, instead of words like “king” or “president.”

Example: When meeting sheikhs, many foreign leaders hold hands with them as a sign of respect or friendship.

c. Taekwondo (from Korean) – In Korean, “taekwondo” means “kick fist art” and in English it’s used to describe that popular martial art.

Example: I want to learn a martial art and I have chosen taekwondo.

Students can Download Economics Chapter 2 Consumption Analysis Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Economics Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 2 Consumption Analysis

Samacheer Kalvi 11th Economics Consumption Analysis Text Book Back Questions and Answers

Part – A

Multiple Choice Questions

Question 1.
Pick the odd one out
(a) Luxuries
(b) Comforts
(c) Necessaries
(d) Agricultural
Answer:
(d) Agricultural

Question 2.
Choice is always constrained or limited by the …………………… of our resources.
(a) Scarcity
(b) Supply
(c) Demand
(d) Abundance
Answer:
(a) Scarcity

Question 3.
The chief exponent of the Cardinal utility approach was
(a) J.R.Hicks
(b) R.G.D.Allen
(c) Marshall
(d) Stigler
Answer:
(c) Marshall

Question 4.
Marginal Utility is measured by using the formula of ……………………..
(a) TU_n – TU_n-1
(b) TU_n – TU_n+1
(c) TU_n + TU_n+1
(d) TU_n – TU_n+1
Answer:
(a) TU_n – TU_n-1

Question 5.
When marginal utility reaches zero, the total utility will be
(a) Minimum
(b) Maximum
(c) Zero
(d) Negative
Answer:
(b) Maximum

Question 6.
Gossen’s first law is known as ……………………..
(a) Law of equi-marginal utility
(b) Law of diminishing marginal utility
(c) Law of demand
(d) Law of Diminishing returns.
Answer:
(b) Law of diminishing marginal utility

Question 7.
The basis for the law of demand is related to
(a) Law of diminishing marginal utility
(b) Law of supply
(c) Law of Equi-marginal utility.
(d) Gossen’s Law.
Answer:
(a) Law of diminishing marginal utility

Question 8.
The concept of consumer’s surplus is associated with ……………………….
(a) Adam smith
(b) Marshall
(c) Robbins
(d) Ricardo
Answer:
(b) Marshall

Question 9.
Given the potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus,
(a) 375
(b) 175
(c) 200
(d) 50
Answer:
(d) 50

Question 10.
Indifference curve approach is based on ………………………..
(a) Ordinal approach
(b) Cardinal approach
(c) Subjective approach
(d) Psychological approach
Answer:
(a) Ordinal approach

Question 11.
The concept of elasticity of demand was introduced by
(a) Ferguson
(b) Keynes
(c) Adam Smith
(d) Marshall
Answer:
(d) Marshall

Question 12.
Increase in demand is caused by ……………………..
(a) Increase in tax
(b) Higher subsidy
(c) Increase in interest rate
(d) decline in population
Answer:
(b) Higher subsidy

Question 13.
The movement on or along the given demand curve is known as _______.
(a) Extension and contraction of demand.
(b) Shifts in the demand,
(c) Increase and decrease in demand.
(d) All the above
Answer:
(a) Extension and contraction of demand.

Question 14.
In case of relatively more elastic demand, the shape of the curve is ……………………..
(a) Horizontal
(b) Vertical
(c) Steeper
(d) Flatter
Answer:
(d) Flatter

Question 15.
A consumer is in equilibrium when marginal utilities from two goods are
(a) Minimum
(b) Inverse
(c) Equal
(d) Increasing
Answer:
(c) Equal

Question 16.
Indifference curve was first introduced by ………………………..
(a) Hicks
(b) Allen
(c) Keynes
(d) Edgeworth
Answer:
(d) Edgeworth

Question 17.
The elasticity of demand is equal to one indicates
(a) Unitary Elastic Demand
(b) Perfectly Elastic Demand
(c) Perfectly Inelastic Demand
(d) Relatively Elastic Demand
Answer:
(a) Unitary Elastic Demand

Question 18.
The locus of the points which gives the same level of satisfaction is associated with ……………………….
(a) Indifference Curves
(b) Cardinal Analysis
(c) Law of Demand
(d) Law of Supply
Answer:
(a) Indifference Curves

Question 19.
Ordinal Utility can be measured by
(a) Ranking
(b) Numbering
(c) Wording
(d) None of these
Answer:
(a) Ranking

Question 20.
The indifference curve are ………………………..
(a) Vertical
(b) Horizontal
(c) Positive sloped
(d) Negatively sloped
Answer:
(d) Negatively sloped

Part – B

Answer the following questions in one or two sentences

Question 21.
Define Utility.
Answer:

1. The utility is the capacity of a commodity to satisfy human wants.
2. The utility cannot be cardinally measured but can be ranked or compared or ordered by an ordinal number such as I, II, III, and so on.

Question 22.
Mention the classifications of wants.
Answer:
(a) Necessaries
(b) Comforts
(c) Luxuries.

Question 23.
Name the basic approaches to consumer behavior.
Answer:
The Basic Approaches to Consumer Behaviour:

1. Cardinal Utility Analysis
2. Ordinal Utility Analysis

Question 24.
What are the degrees of price elasticity of Demand?
Answer:
The Degrees of Price Elasticity of Demand:

1. Perfectly Elastic Demand (Ep = α)
2. Perfectly Inelastic Demand (Ep = 0)
3. Relatively Elastic Demand (Ep >1)
4. Relatively Inelastic Demand (Ep < 1)
5. Unitary Elastic Demand (Ep =1).

Question 25.
State the meaning of indifference curves?
Answer:
Indifference curves mean all those combinations of any two goods which give equal satisfaction to the consumer.

Question 26.
Write the formula of consumer surplus.
Answer:
Consumer’s surplus = Potential price – Actual price.
Consumer’s surplus = TU-(P × Q)
TU – Total Utility,
P – Price,
Q – Quantity.

Question 27.
What are Giffen goods? Why it is called that?
Answer:
The Giffen goods are inferior goods which are an exception to the law of demand. When the price of an inferior good falls, the poor will buy less and vice versa.

Part – C

Answer the following questions in One Paragraph

Question 28.
Describe the feature of human wants.
Answer:
The Feature of Human:

1. Wants are unlimited
2. Wants become habits
3. Wants are satiable
4. Wants are alternative
5. Wants are competitive
6. Wants are complementary
7. Wants are recurring.

Question 29.
Mention the relationship between marginal utility and total utility.
Answer:
Total Utility:

1. If Total utility increases
2. If Total utility reaches maximum.
3. If Total utility diminishes

Marginal Utility:

1. Marginal utility declines
2. Marginal utility reaches zero
3. Marginal utility becomes negative

MU_n = TU_n – TU_n-1.

Question 30.
Explain the concept of consumer’s equilibrium with a diagram.
Answer:
Consumer surplus is the difference between the potential price and the actual price. Consumer’s surplus = Potential price – Actual price.
(or)
Consumer’s surplus = TU – (P × Q)
TU – Total Utility, P – Price, Q – Quantity

In the diagram, X-axis shows the amount demanded and Y-axis represents the price. DD shows the consumer’s utility from the purchase of different amounts of a commodity.
Hence Actual price of OPCQ
Potential price ODCQ
Consumer’ surplus = ODCQ – OPCQ = PCD.

Question 31.
Explain the theory of “ Consumer’s Surplus ”?
Answer:
The concept of consumer’s surplus is based on the law of diminishing marginal utility. Alfred Marshall defines consumer’s surplus as “The excess of price which a person would be willing to pay rather than go without the thing, over that which he actually does pay is the economic measure of this surplus satisfaction. This may be called a consumer’s surplus.

Question 32.
Distinguish between extension and contraction of demand.
Answer:
If the changes in the quantity demanded is due to the change in price alone then it is called extension and contraction of demand. Buying more at a lower price is an extension of demand and less at a higher price is the contraction of demand.

Question 33.
What are the properties of indifference curves?
Answer:

1. The indifference curve must have a negative slope.
2. Indifference curves are convex to the origin.
3. The indifference curve cannot intersect.
4. Indifference curves do not touch the horizontal or vertical axis.

Question 34.
Briefly explain the concept of consumer’s equilibrium.
Answer:

The consumer reaches equilibrium at the point where the budget line is tangent on the indifference curve.
T is the point of equilibrium as budget line AB is tangent on indifference curve IC₃ the upper IC which implies a maximum possible level of satisfaction.

At equilibrium point, the slope of IC refers to MRS_xy and the slope of BL (Budget Line) refers to the ratio of the price of X to the price of Y i.e. P_x / P_y. Therefore MRS_x,y = P_x / P_y.

Part – D

Answer the following questions in about a page

Question 35.
Explain the law of demand and its exceptions.
Answer:
The law of demand was first stated by Augustin Cournot in 1838. Later it was refined and elaborated by Alfred Marshall.
Definition:
The law of demand says as “The quantity demanded increases with a fall in price and diminishes with a rise in price” -Marshall.

Assumptions of the law:

1. The income, taste, habit, and preference of the consumer remain the same.
2. No change in the prices of related goods.
3. No substitutes for the commodity.
4. The demand for the commodity must be continuous.
5. No change in the quality of the commodity.

If there is change even in one of these assumptions, the law will not operate.
Demand schedule:

From the above schedule if the price of the good is 5 then the quantity demanded is 1 unit and if the price decrease to 1 quantity demanded raises to 5 which shows the inverse relationship between price and quantity demanded.

Diagram:

In the above diagram, X-axis represents the quantity demanded and Y-axis represents the price. DD is the demand curve which has a negative slope. It indicates that when the price falls, the demand expands and when price rises, the demand contracts.

Market demand for a commodity:

The market demand curve for a commodity is derived by adding the quantum demanded of the commodity by all the individuals in the market.
Exceptions to the law of demand:

1. There are some unusual demand curves which slope upwards from left to right. It is known as the exceptional demand curve.
2. In the case of an exceptional demand curve, a fall in price brings about contraction and a rise in price brings about an extension of demand.

Reasons for exceptional demand curve:

1. Giffen paradox
2. Veblen or demonstration
3. Ignorance
4. Speculative effect
5. Fear of shortage

Question 36.
Elucidate the law of diminishing marginal utility with a diagram.
Answer:
H.H. Gosen, an Austrian Economist first formulated this law in 1854. Hence Jevons called this law “Gossen’s first law of consumption”. Marshall perfected this law on the basis of cardinal analysis and it is based on the characteristics of human wants, its wants are satiable.

Definition:
Marshall states that “The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in the stock that he already has”
Assumptions:

1. The utility can be measured cardinally.
2. The marginal utility of money remains constant.
3. The consumer is a rational economic man.
4. The units of the commodity consumed must be reasonable in size.
5. The commodity consumed should be homogenous in all aspects.
6. Consumption takes place continuously at a given period of time.
7. No change in the taste, habits, preferences, fashions, income, and character of the consumer during the process of consumption.

Explanation:
The law states that if a consumer continues to consume more or more units of the same commodity, its marginal utility diminishes.

Illustration:
This law can be explained with a simple illustration. Suppose a consumer wants to consume apples one after another the utility from the first apple is 20. But the utility from the second apple will be less than the first (say 15), the third less than the second (say 10), and so on. Finally, the utility from the fifth apple becomes zero.

The utilities from the sixth and seventh apples are negative. This tendency is called “The . law of diminishing marginal utility’”.

From the above table and diagram. We find that the total utility goes on increasing but at a diminishing rate. Whereas marginal utility goes on diminishing. When marginal utility becomes zero, the total utility is maximum, when marginal utility becomes negative, the total utility diminishes.

Criticisms:

1. As utility is subjective, it cannot be measured numerically.
2. This law is based on unrealistic assumptions.
3. This law is not applicable to indivisible commodities.

Question 37.
Explain the law of Equi-marginal utility.
Answer:
To satisfy unlimited wants a consumer needs more than one commodity. So, the law of diminishing marginal utility is extended and is called the “Law of Equi-marginal utility”. It is also called the “Law of substitution” “The law of consumer’s equilibrium”, “Gossen second law” and “The law of maximum satisfaction”.

Definition:
Marshall states the law as, “If a person has a thing which he can put to several uses, he will distribute it among these uses in such a way that it has the same marginal utility in all. For if it had a greater marginal utility in one use than another he would gain by taking away some of it from the second use and applying it to first”.
Assumptions:

1. The rational consumer wants to maximize his satisfaction.
2. The utility is measurable cardinally.
3. The marginal utility of money remains constant.
4. The income of the consumer is given.
5. There is perfect competition in the market.
6. The prices of the commodities are given.
7. The law of diminishing marginal utility operates.

Explanation:
The law can be explained with the help of an example. Suppose a consumer wants to spend his limited income on Apple and Orange. He is said to be in equilibrium, only when he gets maximum satisfaction with his limited income. Therefore, he will be in equilibrium, when

K – Constant marginal unity of money

Table:

Let us assume that the consumer wants to spend his entire income (Rs.11) on Apple add Orange. The price of an Apple and Orange is Rs. 1 each.
If the consumer wants to attain maximum utility he should buy 6 units of Apples and 5 units of Oranges so that he can get 150 units.

Diagram:

In the diagram, X-axis represents the amount of money spent and the Y-axis marginal utilities of Apple and Orange. If the consumer spends Rs. 6 on Apple and Rs. 5 on Orange, the marginal utilities of both are equal (ie) AA, = BB, Hence he gets maximum utility.

Question 38.
What are the methods of measuring the Elasticity of demand?
Answer:
There are three methods of measuring the elasticity of demand.

1. The percentage method:

It is also known as the ratio method when we measure the ratio as

% ∆Q = perCentage change in demand, %∆P = Percentage change in price.

2. Total outlay method:
Marshall suggested that the simplest way to decide whether demand is elastic or inelastic is to examine the change in the total outlay of the consumer or total revenue of the firm.
Total revenue = Price × Quantity sold
TR = P × Q
Total outlay method:

Demand is elastic, if there is an inverse relation between price and total outlay and direct relation means inelastic. Elasticity is unity when the total outlay is constant.

Question 3.
Point or geometrical elasticity:
Answer:
The point elasticity of a linear demand curve is shown by the ratio of the segments of the line to the right and to the left of the particular point.

EP – Point Elasticity, L – Lower Segment, U – Upper Segment.

Samacheer Kalvi 11th Economics Consumption Analysis Additional Questions and Answers

Part – A

Choose the best options

Question 1.
The utility cannot be measured, because the utility is ………………………. concept.
(a) Social
(b) Subjective
(c) Political
(d) Scientific
Answer:
(b) Subjective

Question 2.
_________ law is helpful in attaining social justice.
(a) Law of Equi-marginal utility
(b) Law of demand
(c) Law of diminishing marginal utility
(d) Law of marginal utility
Answer:
(c) Law of diminishing marginal utility

Question 3.
Consumer surplus is …………………….
(a) Potential price – Actual price
(b) MV = TV – TV
(c) Demand = Supply
(d) None
Answer:
(a) Potential price – Actual price

Question 4.
Income elasticity of demand is the degree of responsiveness of change in demand to
(a) Change is price
(b) Elasticity of demand
(c) Change in substitutes
(d) Change in income
Answer:
(d) Change in income

Question 5.
Marshallian utility approach is …………………….. analysis.
(a) Subjective
(b) Psychological
(c) Ordinal
(d) Cardinal
Answer:
(d) Cardinal

Question 6.
_________ is the major determinant of demand.
(a) Consumption
(b) Price
(c) Supply
(d) All the above
Answer:
(b) Price

Question 7.
Principle of Economics” was defined by ………………….
(a) Marshall
(b) Hicks
(c) Allen
(d) Keynes
Answer:
(a) Marshall

Question 8.
The formula for point method
(a) Upper segment / Lower segment
(b) Middle segment / Upper segment
(c) Lower segment / Upper segment
(d) Upper segment / Left segment
Answer:
(c) Lower segment / Upper segment

Question 9.
What is the other name of the budget line?
(a) Price ratio line
(b) Quantity ratio line
(c) Equilibrium ratio line
(d) Compulsory ratio line
Answer:
(a) Price ratio line

Question 10.
_________ is the basis of all the laws of consumption.
(a) Law of demand
(b) Law of consumerism
(c) Law of elasticity
(d) Law of diminishing marginal utility
Answer:
(d) Law of diminishing marginal utility

Question 11.
Give the consumer’s surplus is 75 and the actual price 372, Find the potential price
(a) 447
(b) 50
(c) 375
(d) 474
Answer:
(a) 447

Choose the correct statement

Question 1.
(a) Consumption is the beginning of economic science
(b) Production is the beginning of economic science
(c) Distribution is the beginning of economic science
(d) Exchange is the beginning of economic science
Answer:
(a) Consumption is the beginning of economic science

Question 2.
(a) The law of diminishing marginal utility is called Gresham’s law.
(b) The law Equi marginal utility is called Marshall’s law.
(c) The law of diminishing marginal utility is called Gossen’s first law of consumption.
(d) The law of demand is called Gossen’s second law of consumption.
Answer:
(c) The law of diminishing marginal utility is called Gossen’s first law of consumption.

Match the following and choose the answer using the codes given below

Question 3.

(a) 1 2 3 4
(b) 3 4 2 1
(c) 2 3 4 1
(d) 4 3 2 1
Answer:
(b) 3 4 2 1

Question 4.

(a) 4 3 2 1
(b) 2 1 4 3
(c) 3 4 2 1
(d) 3 1 4 2
Answer:
(d) 3 1 4 2

Choose the odd one out

Question 5.
(a) Giffen paradox
(b) Demonstration effect
(c) Speculative effect
(d) Edge worth approach
Answer:
(d) Edge worth approach

Question 6.
(a) F.W. Edge worth
(b) Alfred Marshall
(c) Vilfredo Pareto
(d) J.R. Hicks and R.G.D. Allen
Answer:
(b) Alfred Marshall

Question 7.
(a) Percentage method
(b) Point method
(c) Total outlay method
(d) Income elasticity method
Answer:
(d) Income elasticity method

Choose the incorrect pair

Question 8.

Answer:
(a) Point (i) Upper segment/Lower segment.

Question 9.

Answer:
(b) Unptary elastic demand (i) e_p= 0.

Question 10.

Answer:
(c) e_p < 1 (iii) Rectangular hyperbola

Analyze the reason for the following.

Question 11.
Assertion (A): Savings and demand are inversely related.
Reason (R): Increased savings leads to a decrease in consumption.
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)
(c) (A) is true but, (R) is false.
(d) Both (A) and (R) are false.
Answer:
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)

Question 12.
Assertion (A): When the price of inferior goods falls, the poor will buy less.
Reason (R): Poor consume less amount of inferior goods.
(a) Both (A) and (R) are true
(b) Both (A) and (R) are false
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.
Answer:
(c) (A) is true but (R) is false.

Choose the incorrect statement

Question 13.
(a) The exceptional demand curve slopes upwards,
(b) The good salt is price inelastic
(c) Elasticity is unity when total outlay is constant
(d) Demand is more elastic in the short run than is long run
Answer:
(a) The exceptional demand curve slopes upwards

Question 14.
(a) The law of DMU is based on the characteristics of human wants.
(b) The law of consumer surplus is based on the law of DMU
(c) The indifference curve approach is based on the scale of preference.
(d) None of the above.
Answer:
(d) None of the above.

Fill in the blanks with the suitable option given below

Question 15.
Diamond – water paradox was given by
(a) Adam Smith
(b) Marshall
(c) Robbins
(d) Samuelson
Answer:
(a) Adam Smith

Question 16.
_________ law is helpful in attaining social justice.
(a) Law of demand
(b) Law of diminishing marginal utility
(c) Law of Equi-marginal utility
(d) None of the above
Answer:
(b) Law of diminishing marginal utility

Question 17.
_________ is the basis of all the laws of consumption.
(a) Law of demand
(b) Law of consumerism
(c) Law of elasticity
(d) Law of diminishing marginal utility
Answer:
(d) Law of diminishing marginal utility

Choose the best option

Question 18.
_________ is the major determinant of demand.
(a) Consumption
(b) Price
(c) Supply
(d) All the above
Answer:
(b) Price

Question 19.
If the total utility is maximum then marginal utility is _________
(a) Zero
(b) Negative
(c) Positive
(d) Maximum
Answer:
(a) Zero

Question 20.
Mathematically consumer’s surplus is
(a) TU – TU_n-1
(b) TR – (P×Q)
(c) TU – (P×Q)
(d) TC – (Q×P)
Answer:
(c) TU-(P×Q)

Part – B

Answer the following questions in one or two sentences

Question 1.
Define “Consumption”?
Answer:
Consumption plays an important role in Economics. “ Consumption is the sole end and object of economic activity” – J.M. Keynes. Consumption is the beginning of economic science. In the absence of consumption, there can be no production; exchange, or distribution. Consumption is also an end of production. Producers produce goods to satisfy the wants of the people.

Question 2.
What is the law of demand?
Answer:
“The quantity demanded increases with a fall in price and diminishes with a rise in price” – Marshall.

Question 3.
Write the characteristics of demand?
Answer:
Characteristics of demand:

1. Price: Demand is always related to price.
2. Time: Demand always means demand per unit of time, per day, per week, per month on per year.
3. Market: Demand is always related to the market, buyer, and sellers.
4. Amount: Demand is always a specific quantity that a consumer is willing to purchase.

Question 4.
What is marginal utility?
Answer:
Marginal utility is the utility derived from the last or marginal unit of consumption.

Question 5.
What is demand?
Answer:
Demand is the desire backed by the ability to pay and the willingness to buy it.

Question 6.
What is the elasticity of demand?
Answer:
The elasticity of demand is the degree of responsiveness of the quantity demand for a commodity to a change in its price.

Question 7.
What are the determinants of elasticity of demand?
Answer:

1. Availability of substitutes
2. The proportion of consumer’s income
3. Number of uses of the commodity
4. Complementarity between goods.

Part – C

Answer the following questions in One Paragraph

Question 1.
What is an indifference map?
Answer:
An indifference map is a family or collection or set of indifference curves corresponding to different levels of satisfaction. In the diagram, the indifference curves IC₁, IC_2, and IC₃ represent the indifference map, upper IC representing a higher level of satisfaction compared to lower IC.

Question 2.
Write the importance of the law of diminishing marginal utility?
Answer:

1. This law of DMU is one of the fundamental laws of consumption. It has applications in several fields of study.
2. The law of DMU is the basis for other consumption laws such as the law of Demand, Elasticity of Demand, Consumer Surplus, and the Law of Substitution, etc.
3. The law emphasizes the equitable distribution of wealth. The MU of money to the more -moneyed is low. Hence redistribution of income from rich to poor is justified.

Question 3.
What are the determinants of demand?
Answer:

1. Changes in tastes and fashions
2. Change in weather
3. Taxation and subsidy
4. Change in expectations
5. Changes in savings
6. State of trade activity
7. Advertisement
8. Change in income
9. Change in population.

Question 4.
What is a scale of preference?
Answer:

1. A rational consumer usually prefers the combination of goods which gives him a maximum level of satisfaction.
2. Thus the consumer can arrange goods and their combination in order of their satisfaction.
3. Such an arrangement of a combination of goods in the order of level of satisfaction is called the “Scale of preference”.

Students can Download Samacheer Kalvi 11th English Grammar Idioms, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Idioms

Choose the suitable meaning of the idiom found in the following sentences:

Question 1.
His limited monthly income is a drop in the ocean.
(a) large
(b) plenty
(c) extreme
(d) meagre
Answers
(d) meagre

Question 2.
The post office is just a stone’s throw.
(a) far
(b) very near
(c) lazy
(d) brisk
Answers
(b) very near

Question 3.
Sugar is in short supply.
(a) inadequate
(b) adequate
(c) surplus
(d) superfluous
Answers
(a) inadequate

Question 4.
I wish someone could bring about a reconciliation among the warring factions of the same political party.
(a) cause to happen
(b) fetched
(c) supplied
(d) withdrew
Answers
(a) cause to happen

Question 5.
I want to achieve in all walks of life.
(a) have a change
(b) various areas of activity in life
(c) to disagree strongly
(d) perfectly healthy
Answers
(b) various areas of activity in life

Question 6.
Orders for the new product are coming in thick and fast.
(a) large numbers
(b) small volumes
(c) limited quantity
(d) appropriate level
Answers
(a) large numbers

Question 7.
Punjab Government had taken a very hard line against Ram Rahim, the Godman.
(a) a firm stand
(b) infirm stand
(c) ticklish
(d) fickle
Answers
(a) a fIrm stand

Question 8.
Don’t add insult to injury by insulting the boy who lost distinction by just two marks.
(a) brighten up
(b) worsen the situation
(c) lighten the situation
(d) mitigate the situation
Answers
(b) worsen the situation

Question 9.
All the workers rose against their employer.
(a) not involved in
(b) tolerated
(c) due to
(d) revolted
Answers
(d) revolted

Question 10.
A good salesman must be able to think on his feet to close the deal.
(a) adjust quickly to changes
(b) delete important material
(c) walk fast
(d) start a new adventure
Answers
(a) adjust quickly to changes

Question 11.
When the team was undergoing a major restructuring, recruitment executives were the first to get the axe.
(a) receive a gift
(b) find a place
(c) lose the job
(d) be seated
Answers
(c) lose the job

Question 12.
I go to visit my grandfather once in a blue moon; he lives in a remote farmhouse.
(a) once a year
(b) quite often
(c) every day
(d) very rarely
Answers
(d) very rarely

Question 13.
Taking care of a newborn is no bed of roses.
(a) easy option
(b) tough task
(c) long route
(d) bunch of flowers
Answers
(a) easy option

Question 14.
Every kid in the world is the apple of their parents’ eye(s).
(a) easy option
(b) tough task
(c) long route
(d) bunch of flowers
Answers
(a) someone very dear

Question 15.
His behaviour compelled me to give him a piece of my mind.
(a) scold him
(b) pardon him
(c) be a friend
(d) ignore him
Answers
(a) scold him

Question 16.
He gave an evocative rendering to his recent poems.
(a) thrilling
(b) enchanting
(c) emotional
(d) incantatory
Answers
(c) emotional

Question 17.
David’s promotion is on the cards.
(a) due
(b) evident
(c) certain
(d) probable
Answers
(c) certain

Question 18.
Professor Christopher asked the students to buckle down this semester.
(a) work seriously
(b) take it easy
(c) drop a subject
(d) take leave
Answers
(a) work seriously

Question 19.
Rita is not cut out for this kind of work.
(a) trained
(b) suitable
(c) recommended
(d) considered
Answers
(b) suitable

Question 20.
The director hesitated to assign the job to the newcomer as he was wet behind the ears.
(a) stupid and slow-witted
(b) young and inexperienced
(c) deaf
(d) lethargic
Answers
(b) young and inexperienced

Students can Download Samacheer Kalvi 11th English Grammar Homophones, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Homophones

Homophones are one of the group of words pronounced alike but differ in meaning and spelling or both. (e.g.) carat, carrot; week, weak and hear, here.

Rewrite the following sentences by using the correct homophones for the underlined words:

Question 1.
The story “Beauty and the Beast” is interesting.
Answer:
The story “Beauty and the Beast” is interesting.

Question 2.
Mom gave good advice to her son.
Answer:
Mom gave good advice to her son.

Question 3.
Ice cream was served as dessert.
Answer:
Ice cream was served as dessert.

Question 4.
Cease time by the foreclock.
Answer:
Seize time by the foreclock?

Question 5.
Mothers do not have time for bedtime tails any more.
Answer:
Mothers do not have time for bedtime tales any more

Question 6.
Never pause unhealthy comments.
Answer:
Never pass unhealthy comments.

Question 7.
Trump wood be pleased to continue the military aid to Pakistan.
Answer:
Trump would be pleased to continue the military aid to Pakistan.

Question 8.
The Nellore bound train met with an accident an our ago.
Answer:
The Nellore bound train met with an accident an hour ago.

Question 9.
The grapes on the wine are beautiful.
Answer:
The grapes on the vine are beautiful.

Question 10.
Orthodoxical Hindus never eat meet.
Answer:
Orthodox Hindus never eat meat.

Question 11.
Getting gold medals thrice for running 200 metre dash continuously is a great feet.
Answer:
Getting gold medals thrice for running 200 metre dash continuously is a great feat.

Question 12.
Time may heel some wounds.
Answer:
Time may heal some wounds.

Question 13.
Mom advised me to prey regularly.
Answer:
Mom advised me to pray regularly.

Question 14.
Don’t loose your temper.
Answer:
Don’t lose your temper.

Question 15.
Some believe, “Mite is right”.
Answer:
Some believe, “Might is right”.

Question 16.
She new the way to the supermarket.
Answer:
She knew the way to the supermarket.

Question 17.
King Solomon was always faring in his judgment.
Answer:
King Solomon was always fair in his judgment.

Question 18.
Marina beech is the longest in Asia.
Answer:
Marina beach is the longest in Asia.

Question 19.
An engineer was arrested who had hordes of 2000 rupee notes.
Answer:
An engineer was arrested who had hoards of 2000 rupee notes.

Question 20.
The due seated on the top of a grass sparkled like a diamond.
Answer:
The dew seated on the top of a grass sparkled like a diamond.

Students can Download Economics Chapter 3 Theories of Employment and Income Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Economics Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Economics Solutions Chapter 3 Theories of Employment and Income

Samacheer Kalvi 12th Economics Theories of Employment and Income Text Book Back Questions and Answers

Part – A
Multiple Choice Questions.

Question 1.
Every able bodied person who is willing to work at the prevailing wage rate is employed called as –
(a) Full employment
(b) Under employment
(c) Unemployment
(d) Employment opportunity
Answer:
(a) Full employment

Question 2.
Structural unemployment is a feature in a –
(a) Static society
(b) Socialist society
(c) Dynamic society
(d) Mixed economy
Answer:
(c) Dynamic society

Question 3.
In disguised unemployment, the marginal productivity of labour is –
(a) Zero
(b) One
(c) Two
(d) Positive
Answer:
(a) Zero

Question 4.
The main concention of the Classical Economic Theory is –
(a) Under employment
(b) Economy is always in the state of equilibrium
(c) Demand creates its supply
(d) Imperfect competition
Answer:
(b) Economy is always in the state of equilibrium

Question 5.
J.B. Say is a –
(a) Neo Classical Economist
(b) Classical Economist
(c) Modem Economist
(d) New Economist
Answer:
(b) Classical Economist

Question 6.
According to Keynes, which type of unemployment prevails in capitalist economy?
(a) Full employment
(b) Voluntary unemployment
(c) Involuntary unemployment
(d) Under employment
Answer:
(d) Under employment

Question 7.
The core of the classical theory of employment is –
(a) Law of Diminishing Return
(b) Law of Demand
(c) Law of Markets
(d) Law of Consumption
Answer:
(c) Law of Markets

Question 8.
Keynes attributes unemployment to –
(a) A lack of effective supply
(b) A lock of effective demand
(c) Alack of both
(d) None of the above
Answer:
(b) A lock of effective demand

Question 9.
…………………… Flexibility brings equality between saving and investment.
(a) Demand
(b) Supply
(c) Capital
(d) Interest
Answer:
(d) Interest

Question 10.
……………………. theory is a turning point in the development of modem economic theory.
(a) Keynes’
(b) Say’s
(c) Classical
(d) Employment.
Answer:
(a) Keynes’

Question 11.
The basic concept used in Keynes Theory of Employment and Income is –
(a) Aggregate demand
(b) Aggregate supply
(c) Effective demand
(d) Marginal Propensity Consume
Answer:
(c) Effective demand

Question 12.
The component of aggregate demand is –
(a) Personal demand
(b) Government expenditure
(c) Only export
(d) Omli import
Answer:
(b) Government expenditure

Question 13.
Aggregate supply is equal to –
(a) C +1 + G
(b) C + S + G + (x – m)
(c) C + S + T + (x-m)
(d) C + S + T + Rf
Answer:
(d) C + S + T + Rf

Question 14.
Keynes theory pursues to replace laissez faire by –
(a) No government intervention
(b) Maximum intervention
(c) State intervention in certain situation
(d) Private sector intervention
Answer:
(c) State intervention in certain situation

Question 15.
In Keynes theory of employment and income, ……………………… is the basic cause of economic depression.
(a) Less production
(b) More demand
(c) Inelastic supply
(d) Less aggregate demand in relation to productive capacity.
Answer:
(d) Less aggregate demand in relation to productive capacity.

Question 16.
Classical theory advocates –
(a) Balanced budget
(b) Unbalanced budget
(c) Surplus budget
(d) Deficit budget
Answer:
(a) Balanced budget

Question 17.
Keynes theory emphasized on ……………………….. equilibrium.
(a) Very short run
(b) Short run
(c) Very long run
(d) Long run
Answer:
(b) Short run

Question 18.
According to classical theory, rate of interest is a reward for –
(a) Investment
(b) Demand
(c) Capital
(d) Saving
Answer:
(d) Saving

Question 19.
In Keynes theory, the demand for and supply of money are determined by –
(a) Rate of interest
(b) Effective demand
(c) Aggregate demand
(d) Aggregate supply
Answer:
(a) Rate of interest

Question 20.
Say’s law stressed the operation of ……………………… in the economy.
(a) Induced price mechanism
(b) Automatic price mechanism
(c) Induced demand
(d) Induced investment
Answer:
(b) Automatic price mechanism

Part – B
Answer The Following Questions In One or Two Sentences.

Question 21.
Define full employment?
Answer:
Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed. In other words full employment means that persons who are willing to work and able to work must have employment or a job.

Question 22.
What is the main feature of rural unemployment?
Answer:

1. India’s rural economy has both unemployment and underemployment.
2. The major feature of rural unemployment is the existence of unemployment in the form of disguised unemployment and seasonal unemployment.
3. In agriculture and agro based industries like sugar, production activities are carried out only in some seasons.

Question 23.
Give short note on frictional unemployment?
Answer:
Frictional Unemployment (Temporary Unemployment):

1. Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
2. This is because of immobility of labour, lack of necessary skills, break down of machinery, shortage of raw materials etc.
3. The persons who lose jobs and in search of jobs are also included under frictional unemployment.

Question 24.
Give reasons for labour retrenchment at present situation?
Answer:

1. Modem technology being capital intensive requires less labourers and contributes to ’ technological unemployment.
2. Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.
3. Labour saving devices are responsible for technological unemployment.

Question 25.
List out the assumptions of Say’s law?
Answer:
The Say’s Law of market is based on the following assumptions:

1. No single buyer or seller of commodity or an input can affect price.
2. Full employment.
3. People are motivated by self interest and self – interest determines economic decisions.
4. The laissez faire policy is essential for an automatic and self adjusting process of full employment equilibrium. Market forces determine everything right.
5. There will be a perfect competition in labour and product market.
6. There is wage-price flexibility.
7. Money acts only as a medium of exchange.
8. Long – run analysis.
9. There is no possibility for over production or unemployment.

Question 26.
What is effective demand?
Answer:

1. The starting point of Keynes theory of employment and income is the principle of effective demand.
2. Effective demand denotes money actually spent by the people on products of industry.
3. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit.
4. Therefore effective demand equals national income.

Question 27.
What are the components of aggregate supply?
Answer:
Aggregate demand has the following four components:

1. Consumption demand
2. Investment demand
3. Government expenditure and
4. Net Export (export – import)

Part – C
Answer The Following Questions In A Paragraph.

Question 28.
Explain the following in short:

1. Seasonal unemployment
2. Frictional unemployment
3. Educated unemployment

Answer:
Seasonal Unemployment:

1. This type of unemployment occurs during certain seasons of the year.
2. In agriculture and agro based industries like sugar,production activities are carried out only in some seasons.
3. These industries offer employment only during that season in a year. Therefore people may remain unemployed during the off season.
4. Seasonal unemployment happens from demand side also; for example ice cream industry, holiday resorts etc.

Frictional Unemployment (Temporary Unemployment):

1. Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
2. This is because of immobility of labour, lack of necessary skills, break down of machinery, shortage of raw materials etc.
3. The persons who lose jobs and in search of jobs are also included under frictional unemployment.

Educated Unemployment:

1. Sometimes educated people are underemployed or unemployed when qualification does not match the job.
2. Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India.

Question 29.
According to classical theory of employment, how wage reduction solves the problem of unemployment? Diagrammatically explain?
Answer:
The classical theory of employment assumes that the economy operates at the level of full employment without inflation in the long period. It also assumes that wages and prices of goods are flexible and the competitive market exists in the economy (laissez – faire economy). According to the classical theory of employment, full employment condition can be achieved by cutting down the wage rate. Unemployment would be eliminated when wages are determined by the mechanism of economy itself. The following figure shows the relationship between wage rate and employment:

In the figure, when the wage rate is OW, then the employment is ON. As the wage rate is reduced to OW¹, then the employment has increased to ON¹. Prof. Pigou has taken this theory as base for developing the solution of unemployment problem.

Question 30.
Write short note on the implications of Say’s law?
Answer:
Implications of Say’s Law:

1. There is no possibility for over production or unemployment.
2. If there exist unutilized resources in the economy, it is profitable to employ them up to the point of full employment. This is true under the condition that factors are willing to accept rewards on a par with their productivity.
3. As automatic price mechanism operates in the economy, there is no need for government intervention. (However, J.M. Keynes emphasized the role of the State)
4. Interest flexibility brings about equality between saving and investment.
5. Money performs only the medium of exchange function in the economy, as people will not hold idle money.

Question 31.
Explain Keynes’ theory in the form of flow chart?
Answer:

Question 32.
What do you mean by aggregate demand? Mention its components?
Answer:

1. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed.
2. Therefore, it is the expected income or revenue from the sale of output at different levels of employment.
3. Aggregate demand has the following four components:
   1. Consumption demand
   2. InvestmenTdemand
   3. Government expenditure and
   4. Net Export (export – import)

Question 33.
Explain about aggregate supply with the help of diagram?
Answer:

1. Aggregate supply function is an increasing function of the level of employment.
2. Aggregate supply refers to the value of total output of goods and services produced in an economy in a year.
3. In other words, aggregate supply is equal to the value of national product, i.e., national income.
4. Aggregate Supply = C + S + T + Rf = Aggregate income generated in the economy.
5. The following figure shows the shape of the two aggregate supply curves drawn for the assumption of fixed money wages and variable wages.

Aggregate Supply Curve

1. Z curve is linear where money wages remains fixed; Z₁ curve is non – linear since wage rate increases with employment.
2. When full employment level of Nf is reached it is impossible to increase output by employing more men.
3. So aggregate supply curve becomes inelastic (Vertical straight line).
4. The slope of the aggregate supply curve depends on the relation between the employment and productivity.
5. Based upon this relation, the aggregate supply curve can be expected to slope upwards.
6. In reality the aggregate supply curve will be like Z₁
7. Therefore, the aggregate supply depends on the relationship between price and wages.

Question 34.
Write any five differences between classism and Keynesianism?
Answer:
Comparison of Classicism and Keynesianism
Keynesianism:

1. Short – run equilibrium Saving is a vice
2. The function of money is a medium of exchange on the one side and a store of value on the other side.
3. Macro approach to national problems
4. State intervention is advocated

Classicism:

1. Long – run equilibrium
2. Saving is a social virtue
3. The function of money is to act as a medium of exchange.
4. Micro foundation to macro problems
5. Champions of Laissez – fair policy

Part – D
Answer The Following Questions In One Page.

Question 35.
Describe the types of unemployment?
Answer:
The following are the types of unemployment.
Types of unemployment:

1. Cyclical Unemployment
2. Frictional Unemployment
3. Technical Unemployment
4. Disguised Unemployment
5. Seasonal Unemployment
6. Educated Unemployment
7. Structural Unemployment

1. Cyclical Unemployment:

1. This unemployment exists during the downturn phase of trade cycle in the economy.
2. In a business cycle during the period of recession and depression, income and output fall leading to widespread unemployment.
3. It is caused by deficiency of effective demand.
4. Cyclical unemployment can be cured by public investment or expansionary monetary policy.

2. Seasonal Unemployment:

1. This type of unemployment occurs during certain seasons of the year.
2. In agriculture and agro based industries like sugar, production activities are carried out only in some seasons.
3. These industries offer employment only during that season in a year. Therefore people may remain unemployed during the off season.
4. Seasonal unemployment happens from demand side also; for example ice cream industry, holiday resorts etc.

3. Frictional Unemployment (Temporary Unemployment):

1. Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
2. This is because of immobility of labour, lack of necessary skills, break down of machinery, shortage of raw materials etc.
3. The persons who lose jobs and in search of jobs are also included under frictional unemployment.

4. Educated Unemployment:

1. Sometimes educated people are underemployed or unemployed when qualification does not match the job.
2. Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India.

5. Technical Unemployment:

1. Modem technology being capital intensive requires less labourers and contributes to technological unemployment.
2. Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.
3. Labour saving devices are responsible for technological unemployment.

6. Structural Unemployment:

1. Structural unemployment is due to drastic change in the structure of the society.
2. Lack of demand for the product or shift in demand to other products cause this type of unemployment.
3. For example rise in demand for mobile phones has adversely affected the demand for cameras, tape recorders etc.
4. So this kind of unemployment results from massive and deep rooted changes in economic structure.

7. Disguised Unemployment:

1. Disguised unemployment occurs when more people are than what is actually required.
2. Even if some workers are withdrawn, production does not suffer.
3. This type of unemployment is found in agriculture.
4. A person is said to be disguisedly by unemployed if his contribution to output is less than what he can produce by working for normal hours per day.
5. In this situation, marginal productivity of labour is zero or less or negative.

Question 36.
Critically explain Say’s law of market?
Answer:
Criticisms of Say’s Law:
The following are the criticisms against Say’s law:

1. According to Keynes, supply does not create its demand. It is not applicable where demand does not increase as much as production increases.
2. Automatic adjustment process will not remove unemployment. Unemployment can be removed by increase in the rate of investment.
3. Money is not neutral. Individuals hold money for unforeseen contingencies while businessmen keep cash reserve for future activities.
4. Say’s law is based on the proposition that supply creates its own demand and there is no over production. Keynes said that over production is possible.
5. Keynes regards full employment as a special case because there is under – employment in capitalist economies.
6. The need for state intervention arises in the case of general over production and mass unemployment.

Question 37.
Narrate the equilibrium between ADF and ASF with diagram? Equilibrium between ADF and ASF?
Answer:

• Under the Keynes theory of employment, a simple two sector economy consisting of the household sector and the business sector is taken to understand the equilibrium between ADF and ASF.
• All the decisions concerning consumption expenditure are taken by the individual households, while the business firms take decisions concerning investment.
• It is also assumed that consumption function is linear and planned investment is autonomous.
• There are two approaches to determination of the equilibrium level of income in Keynesian theory. These are:
  1. Aggregate demand – Aggregate supply approach
  2. Saving – Investment approach –
• In this chapter, out of these two, aggregate demand and aggregate supply approach is alone explained to understand the determination of equilibrium level of income and employment.
• The concept of effective demand is more clearly shown in the figure.
• In the figure, the aggregate demand and aggregate supply reach equilibrium at point E. The employment level is N0 at that point.
• At ON₁ employment, the aggregate supply is N, Rr But they are able to produce M₁ N₁ The expected level of profit is M₁, R₁
• To attain this level of profit, entrepreneurs will employ more labourers.
• The tendency to employ more labour will stop once they reach point E.
• At all levels of employment beyond, ON₀, the aggregate demand curve is below the aggregate supply curve indicating loss to the producers.
• Hence they will never employ more than ON₀ labour.
• Thus effective demand concept becomes a crucial point in determining the equilibrium level of output in the capitalist economy or a free market economy in the Keynesian system.
• It is important to note that the equilibrium level of employment need not be the full employment level (N₁) from the Figure, it is understood that the difference between N₀ – N₀ is the level of unemployment.
• Thus the concept of effective demand becomes significant in explaining the under employment equilibrium.

Question 38.
Explain the differences between classical theory and Keynes theory?
Answer:
Keynesianism:

1. Short – run equilibrium
2. Saving is a vice
3. The function of money is a medium of exchange on the one side and a store of value on the other side.
4. Macro approach to national problems
5. State intervention is advocated.
6. Applicable to all situations – full employment and less than full employment.
7. Capitalism has inherent contradictions
8. Budgeting should be adjusted to the requirements of economy.
9. The equality between saving and investment is advanced through changes in income.
10. Rate of interest is determined by the demand for and supply of money.
11. Rate of interest is a flow.
12. Demand creates its own supply.
13. Rate of interest is a reward for parting with liquidity.

Classicism:

1. Long – run equilibrium
2. Saving is a social virtue.
3. The function of money is to act as a medium of exchange
4. Micro foundation to macro problems
5. Champions of Laissez – fair policy
6. Applicable only to the full employment situation.
7. Capitalism is well and good.
8. Balanced budget
9. The equality between saving and investment is achieved through changes of rate of interest.
10. Rate of interest is determined by saving and investment.
11. Rate of interest is a stock.
12. Supply creates its own demand.
13. Rate of interest is a reward for saving.

Samacheer Kalvi 12th Economics Theories of Employment and Income Addtional Questions and Answers

Part – A
I. Multiple Choice Questions.

Question 1.
Who is one of the greatest and most influential economist?
(a) J.M. Keynes
(b) Adam Smith
(c) Marshall
(d) Simon Kuznets
Answer:
(a) J.M. Keynes

Question 2.
Keynes book “The General theory of Employment, Interest and Money” published in –
(a) 1926
(b) 1936
(c) 1946
(d) 1956
Answer:
(b) 1936

Question 3.
The total stock of money circulating in an Economy is called –
(a) Money
(b) Capital
(c) Money Supply
(d) Finance
Answer:
(c) Money Supply

Question 4.
The …………………… function depends upon Income of the people and marginal propensity to consume?
(a) demand
(b) consumption
(c) supply
(d) marginal
Answer:
(b) consumption

Question 5.
Every economy in the world aims at attaining the level of –
(a) full employment
(b) under employment
(c) un employment
(d) employment opportunity
Answer:
(a) full employment

Question 6.
…………………… is an increasing function of the level of employment –
(a) Aggregate supply function
(b) Aggregate demand function
(c) Aggregate consumption function
(d) Aggregate consumption expenditure
Answer:
(a) Aggregate supply function

Question 7.
Effective demand signifies the money spent on consumption of goods and services and on –
(a) capital
(b) investment
(c) profit
(d) finance
Answer:
(b) investment

Question 8.
Who has given importance to the concept of liquidity preference?
(a) Kuznet
(b) Marshall
(c) Keynes
(d) Adam Smith
Answer:
(c) Keynes

Question 9.
…………………….. was a French Economist and an Industrialist?
(a) J.B. Say
(b) Keynes
(c) Adam Smith
(d) David Ricardo
Answer:
(a) J.B. Say

Question 10.
Frictional unemployment another name is called –
(a) Educated unemployment
(b) Seasonal unemployment
(c) Temporary unemployment
(d) Technical unemployment
Answer:
(c) Temporary unemployment

Question 11.
Discussed unemployment is mostly found in –
(a) agriculture
(b) sericulture
(c) industry
(d) architecture
Answer:
(a) agriculture

Question 12.
The main reason for massive unemployment is poor –
(a) economic planning
(b) educational planning
(c) military planning
(d) man power planning
Answer:
(d) man power planning

Question 13.
The Employment Assurance Scheme was launched in the year –
(a) 1983
(b) 1993
(c) 2003
(d) 2013
Answer:
(b) 1993

Question 14.
Cyclical unemployment is caused by …………………………. cycles.
(a) business
(b) money
(c) trade
(d) finance
Answer:
(c) trade

Question 15.
The problem of rural unemployment can be solved only by ………………………….. agriculture.
(a) modernising
(b) agro based
(c) innovative
(d) new method followed
Answer:
(a) modernising

Question 16.
Unemployment is classified as voluntary unemployment and –
(a) involuntary unemployment
(b) cyclical unemployment
(c) rural unemployment
(d) seasonal unemployment
Answer:
(b) cyclical unemployment

Question 17.
Existence of Joint Family System in India promotes –
(a) educational unemployment
(b) disguised unemployment
(c) seasonal unemployment
(d) voluntary unemployment
Answer:
(b) disguised unemployment

Question 18.
Educated and skilled persons who may not accept casual work. This is called ………………………. unemployment.
(a) closed
(b) open
(c) seasonal
(d) disguised unemployment
Answer:
(b) open

Question 19.
………………………. law of market was the basis for assuming the situation of full employment.
(a) J.B. Say
(b) Keynes
(c) Marshall
(d) Lemer
Answer:
(a) J.B. Say

Question 20.
The aggregate effective demand would increase the level of –
(a) unemployment
(b) employment
(c) cyclical unemployment
(d) open unemployment
Answer:
(b) employment

Question 21.
…………………. refers to the labour force of a country.
(a) Employment
(b) Unemployment
(c) Full employment
(d) Open employment
Answer:
(c) Full employment

Question 22.
…………………. means that persons who are willing to work and able to work must have employment or a job?
(a) Full employment
(b) Unemployment
(c) Educational unemployment
(d) Seasonal unemployment
Answer:
(a) Full employment

Question 23.
………………….. is the principle of effective demand?
(a) Profit
(b) Income
(c) Money
(d) Interest
Answer:
(a) Profit

Question 24.
When goods are produced by firms in the economy, they pay reward to the factors of the production is called –
(a) J.M. Keynes
(b) Adam Smith
(c) J.B. Say
(d) Ricardo
Answer:
(c) J.B. Say

Question 25.
…………………….. defines “Full employment as that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices”
(a) Lemer
(b) J.M. Keynes
(c) J.B. Say
(d) Adam Smith
Answer:
(a) Lemer

II. Match the following and choose the correct answer by using codes given below

Question 1.
A. Full employment – (i) Qualified job
B. Educated unemployment – (ii) Deficiency of effective demand
C. Cyclical unemployment – (iii) During season of the year
D. Seasonal unemployment – (iv) Learner
Codes:
(a) A (i) B (ii) C (iii) D (iv)
(b) A (ii) B (iv) C (i) D (iii)
(c) A (iv) B (i) C (ii) D (iii)
(d) A (iii) B (iv) C (i) D (ii)
Answer:
(c) A (iv) B (i) C (ii) D (iii)

Question 2.
A. Public Investment – (i) Temporary unemployment
B. Production activities only in Some seasons – (ii) Deficiency of effective demand
C. Frictional unemployment – (iii) During season of the year
D. Educated unemployment – (iv) Learner
Codes:
(a) A (ii) B (ii) C (iii) D (iv)
(b) A (iii) B (ii) C (iv) D (i)
(c) A (i) B (iii) C (ii) D (iv)
(d) A (iv) B (i) C (iii) D (ii)
Answer:
(a) A (ii) B (ii) C (iii) D (iv)

Question 3.
A. ED – (i) Income of the people
B. ADF – (ii) Y = C + I = Output = Employment
C. ASF – (iii) C + I + G + (X – M)
D. CF – (iv) C + S + T + Rf = Aggregate Income generated in the economy
Codes:
(a) A (i) B (ii) C (iii) D (iv)
(b) A (iii) B (i) C (iv) D (i)
(c) A (iv) B (ii) C (i) D (iii)
(d) A (iv) B (iii) C (iv) D (i)
Answer:
(d) A (iv) B (iii) C (iv) D (i)

Question 4.
A. Keynes concept – (i) Aggregate spending
B. Demand – (ii) Liquidity preference
C. Aggregate supply – (iii) To spend on domestic output
D. Aggregate demand – (iv) The value of national product
Codes:
(a) A (i) B (ii) C (iii) D (iv)
(b) A (ii) B (i) C (iv) D (iii)
(c) A (iii) B (iv) C (ii) D (i)
(d) A (iv) B (iii) C (i) D (ii)
Answer:
(b) A (ii) B (i) C (iv) D (iii)

Question 5.
A. Keynesianism – (i) Long run – equilibrium
B. Classicism – (ii) Short run – equilibrium
C. Keynesianism – (iii) State intervention is advocated
D. Classicism – (iv) Saving is a vice
Codes:
(a) A (ii) B (i) C (iv) D (iii)
(b) A (i) B (ii) C (iii) D (iv)
(c) A (iii) B (iv) C (ii) D(i)
(d) A (iv) B (iii) C (i) D (ii)
Answer:
(a) A (ii) B (i) C (iv) D (iii)

III. State whether the statements are true or false

Question 1.
(i) The function of money is a medium of exchange on the one side and a store of value on the other side is called Keynesianism.
(ii) Macro approach to national problems.

(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
Answer:
(a) Both (i) and (ii) are true

Question 2.
(i) Aggregate demand has the four components are consumption demand, investment demand, Government expenditure and Net export.
(ii) Aggregate demand refers to the required amount of labourers and materials to produce the neccessary output.

(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
Answer:
(c) (i) is true but (ii) is false

Question 3.
(i) Keynesian theory is – Aggregate demand – Aggregate supply approach. Saving – Investment approach.
(ii) This approach explained the determination level of Income and employment.

(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
Answer:
(a) Both (i) and (ii) are true

Question 4.
(i) Effective demand denotes money actually spent by the people on products of Industry and agriculture.
(ii) Effective demand equals to State Income.

(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
Answer:
(b) Both (i) and (ii) are false

Question 5.
(i) “Supply creates its own Demand”.
(ii) The aggregate demand and aggregate supply reach equilibrium at point ‘E’.

(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
Answer:
(a) Both (i) and (ii) are true

IV. Which of the following is correctly matched

Question 1.
(a) Seasonal unemployment – Type of unemployment
(b) Technical unemployment – Some season only
(c) Cyclical unemployment – Public capital
(d) Full employment – Not willing to job
Answer:
(a) Seasonal unemployment – Type of unemployment

Question 2.
(a) Frictional unemployment – Permanant
(b) Educated unemployment – White collar jobs
(c) Structural unemployment – In search job
(d) Disguised unemployment – Found in industry
Answer:
(b) Educated unemployment – White collar jobs

Question 3.
(a) Keynes – A general theory
(b) Aggregate supply – A level of money
(c) Keynesianism – Champions of Laissez – Faire
(d) Effective demand – Classical Economy
Answer:
(a) Keynes – A general theory

Question 4.
(a) Effective demand – Income Effective
(b) Aggregate demand – Money demand
(c) Say’s law – Supply creates own demand
(d) Aggregate supply – Money supply
Answer:
(c) Say’s law – Supply creates own demand

Question 5.
(a) J.B. Say – Industrialist
(b) Adam Smith – Classical Economist
(c) David Ricardo – Capitalist Economist
(d) Lemer – Socialist
Answer:
(a) J.B. Say – Industrialist

V. Which of the following is not correctly matched

Question 1.
(a) Say’s law of Market – Classical theory of Employment
(b) Adam Smith – Wealth of nations
(c) Keynes – The General theory of Employment, Interest and Money
(d) A.C. Pigou – French Economist
Answer:
(d) A.C. Pigou – French Economist

Question 2.
(a) Full Employment – Willing to work and able to work
(b) Unemployment – Cannot find suitable job
(c) Underemployment – Not fully utilized
(d) Disguised unemployment – More people not working
Answer:
(d) Disguised unemployment – More people not working

Question 3.
(a) Keynes – Liquidity preference
(b) Aggregate demand – Consumption demand
(c) Consumption function – Money supply
(d) Marginal effeciency of capital – Investment level
Answer:
(c) Consumption function – Money supply

Question 4.
(a) Effective demand – Y = C + I = Output = Employment
(b) Aggregate supply – C + S + T + Rf = Aggregate Income
(c) Aggregate demand – C + I + G + (X – M)
(d) Aggregate private saving – C + S + T
Answer:
(d) Aggregate private saving – C + S + T

Question 5.
(a) Keynesianism – Capitalism has inherant contradictions
(b) Classism – Capitalism well and good
(c) Keynesian theory – Saving – Investment approach
(d) Frictional – Full employment
Answer:
(d) Frictional – Full employment

VI. Pick the odd one out

Question 1.
Types of unemployment
(a) Cyclical unemployment
(b) Seasonal unemployment
(c) Frictional unemployment
(d) nature unemployment
Answer:
(d) nature unemployment

Question 2.
Classical theory was developed by –
(a) David Ricardo
(b) Adam Smith
(c) J.S. Mill
(d) J.B. Say
Answer:
(b) Adam Smith

Question 3.
The Say’s law of Market Assumptions are –
(a) No single buyer
(b) Full employment
(c) Money is not neutral
(d) Wage flexibility
Answer:
(c) Money is not neutral

Question 4.
Keynesianism is called –
(a) Short run equilibrium
(b) saving is social virtue
(c) Macro approach to national problems
(d) State intervention is advocated
Answer:
(b) Saving is social virtue

Question 5.
Classicism is called –
(a) Capatalism is well and good
(b) Balanced Budget
(c) savinf is vice
(d) Micro foundation to Macro problems
Answer:
(c) Saving is vice

VII. Assertion and Reason

Question 1.
Assertion (A): Modem technology being capital intensive requires less labourers, and contributes to technological unemployment.
Reason (R): Now – a – days invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.

(a) Both ‘A’ and ‘R’ are tme and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are tme but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is tme but ‘R’ is false
(d) ‘A’ is false but ‘R’ is tme .
Answer:
(a) Both ‘A’ and ‘R’ are tme and ‘R’ is the correct explanation to ‘A’

Question 2.
Assertion (A): According to say, “when goods are produced by firms in the Economy”.
Reason (R): There was no single theory which could be labeled as classical theory of employment.

(a) Both ‘A’ and ‘R’ are tme and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
Answer:
(c) ‘A’ is true but ‘R’ is false

Question 3.
Assertion (A): Keynes book “The General theory of Employment, Interest and Money” published in 1916.
Reason (R): A turning point in the development of modem economic theory – Keynes.

(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
Answer:
(d) ‘A’ is false but ‘R’ is true

Question 4.
Assertion (A): Aggregate supply function is increasing function of the level of employment.
Reason (R): Aggregate supply is only state product.

(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
Answer:
(c) ‘A’ is true but ‘R’ is false

Question 5.
Assertion (A): Keynesianism is Macro approach to national problems.
Reason (R): Keynesianism is state intervention is advocated.

(a) Both ‘A’ and ‘R’ are tme and ‘R’ is the correct explanation to ‘A’
(.b) Both ‘A’ and ‘R’ are tme but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is tme but ‘R’ is false
(d) ‘A’ is false but ‘R’ is tme
Answer:
(d) ‘A’ is false but ‘R’ is tme

Part – B
Answer The Following Questions In One or Two Sentences

Question 1.
Write two approaches of the equilibrium level of Income in Keynesian theory?
Answer:
There are two approaches te determination of the equilibrium level of income in Keynesian theory. These are:

1. Aggregate demand – Aggregate supply approach
2. Saving – Investment approach

Question 2.
Define “Unemployment”?
Answer:
Unemployment:
When there are people, who are willing to work and able to work but cannot find suitable jobs.

Question 3.
Define “Marginal propensity to consume”?
Answer:
Marginal Propensity to Consume is the additional consumption due to an additional unit of income.

Question 4.
Write the types of unemployment?
Answer:
Types of unemployment:

1. Cyclical Unemployment
2. Frictional Unemployment
3. Technical Unemployment
4. Disguised Unemployment
5. Seasonal Unemployment
6. Educated Unemployment
7. Structural Unemployment

Part – C
Answer The Following Questions In One Paragraph.

Question 1.
Explain the Aggregate Demand Function with Diagram?
Answer:

1. In the Keynesian model, output is determined mainly by aggregate demand.
2. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed.
3. Therefore, it is the expected income or revenue from the sale of output at different levels of employment.
   • Aggregate demand has the following four components:
     • Consumption demand
     • Investment demand
     • Government expenditure and
     • Net Export (export – import)
4. The desired or planned demand (spending) is the amount that households, firms, the governments and the foreign purchasers would like to spend on domestic output.
5. In other words, desired demand in the economy is the sum total of desired private consumption expenditure, desired investment expenditure, desired government spending and desired net exports (difference between exports and imports).
6. Thus, the desired spending is called aggregate spending (demand), and can be expressed as:
   AD = C + I + G + (X – M)
7. The diagram explains that aggregate demand price increases or decreases with an increase or decrease in the volume of employment.
8. Aggregate demand curve increases at an increasing rate in the beginning and then increases at a decreasing rate.
9. This shows that as income increases owing to increase in employment, expenditure of the economy increases at a decreasing rate.

Question 2.
Aggregate Supply Function meaning and components?
Answer:

1. Aggregate supply function is an increasing function of the level of employment.
2. Aggregate supply refers to the value of total output of goods and services produced in an economy in a year.
3. In other words, aggregate supply is equal to the value of national product, i.e., national income.

The components of aggregate supply are:

1. Aggregate (desired) consumption expenditure (C)
2. Aggregate (desired) private savings (S)
3. Net tax payments (T) (Total tax payment to be received by the government minus transfer payments, subsidy and interest payments to be incurred by the government) and (iv) Personal (desired) transfer payments to the foreigners (Rf) (e.g. Donations to international relief efforts)

Question 3.
Describe the features of classicism?
Answer:

1. Long – run equilibrium
2. Saving is a social virtue.
3. The function of money is to act as a medium of exchange
4. Micro foundation to macro problems
5. Champions of Laissez-fair policy
6. Applicable only to the full employment situation.
7. Capitalism is well and good.
8. Balanced budget
9. The equality between saving and investment is achieved through changes of rate of interest.
10. Rate of interest is determined by saving and investment.
11. Rate of interest is a stock.
12. Supply creates its own demand.
13. Rate of interest is a reward for saving.

Part – D
Answer The Following Questions In One Page.

Question 1.
Describe the Say’s Law of Market?
Answer:

1. Say’s law of markets is the core of the classical theory of employment.
2. J.B.Say (1776 – 1832) was a French Economist and an industrialist.
3. He was influenced by the writings of Adam Smith and David Ricardo.
4. J.B. Say enunciated the proposition that “Supply creates its own demand”.
5. Hence there cannot be general over production or the problem of unemployment in the economy.
6. According to Say, “When goods are produced by firms in the economy, they pay reward to the factors of production.
7. The households after receiving rewards of the factors of production spend the amount on the purchase of goods and services produced by them.
8. Therefore, each product produced in the economy creates demand equal to its value in the market.
9. In short, this classical theory explains that “A person receives his income from production which is spent on the purchase of goods and services produced by others.
10. For the economy as a whole, therefore, total production equals total income.

Question 2.
Explain the features of Keynesianism?
Answer:

1. Short – run equilibrium
2. Saving is a vice
3. The function of money is a medium of exchange on the one side and a store of value on the other side.
4. Macro approach to national problems
5. State intervention is advocated.
6. Applicable to all situations – full employment and less than full employment.
7. Capitalism has inherent contradictions.
8. Budgeting should be adjusted to the requirements of economy.
9. The equality between saving and investment is advanced through changes in income.
10. Rate of interest is determined by the demand for and supply of money.
11. Rate of interest is a flow.
12. Demand creates its own supply.
13. Rate of interest is a reward for parting with liquidity.

Question 3.
Describe the Effective demand?
Answer:

1. The starting point of Keynes theory of employment and income is the principle of effective demand.
2. Effective demand denotes money actually spent by the people on products of industry.
3. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit.
4. Therefore effective demand equals national income.
5. An increase in the aggregate effective demand would increase the level of employment.
6. A decline in total effective demand would lead to unemployment.
7. Therefore, total employment of a country can be determined with the help of total demand ‘ of a country.
8. According to the Keynes theory of employment, “Effective demand signifies the money spent on consumption of goods and services and on investment.
9. The total expenditure is equal to the national income, which is equivalent to the national output”.
10. The relationship between employment and output of an economy depends upon the level of effective demand which is determined by the forces of aggregate supply and aggregate demand.
    ED = Y = C + I = Output = Employment
11. Effective demand determines the level of employment in the economy.
12. When effective demand increases, employment will increase.
13. When effective demand decreases, the level employment will decline.
14. The effective demand will be determined by two determinants namely consumption and investment expenditures.
15. The consumption function depends upon income of the people and marginal propensity to consume.
16. According to Keynes, if income increases, consumption will also increase but by less than the increase in income.

Students can Download Samacheer Kalvi 11th English Grammar Prefix/Suffix, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Prefix/Suffix

Question 1.
Form a new word by adding a suitable prefix to the root word “important”.
(a) in________ (b) un________ (c) dis________ (d) mis________
Answer:
(b) unimportant

Question 2.
Form a new word by adding a prefix to the root word “difference”.
(a) un________ (b) in________ (c) im________ (d) dis________
Answer:
(b) indifference

Question 3.
Form a new word by adding a suitable prefix to the root word “fortune”.
(a) in________ (b) un________ (c) dis________ (d) mis________
Answer:
(d) misfortune

Question 4.
Form a new word by adding a suitable suffix to the root word “poet”.
(a) ________al (b) ________ic (c) ________ile (d) ________ion
Answer:
(b) poetic

Question 5.
Form a new word by adding a suitable suffix to the root word “kind”.
(a) ________ment (b) ________able (c) ________ity (d) ________ness
Answer:
(d) kindness

Question 6.
Form a new word by adding a suitable suffix to the root word “dismiss”.
(a) ________ment (b) ________ate (c) ________al (d) ________ular
Answer:
(c) dismissal

Question 7.
Form a new word by adding a suitable suffix to the root word ‘portray’.
(a) ________ment (b) ________able (c) ________al (d) ________ic
Answer:
(c) portrayal

Question 8.
Form a new word by adding a suitable suffix to the root word “doubt”.
(a) ________hood (b) ________ism (c) ________ly (d) ________fill
Answer:
(d) doubtful

Question 9.
Form a new word by adding a suitable suffix to the root word “need”.
(a) ________ness (b) ________ted. (c) ________y (d) ________ment
Answer:
(c) needy

Question 10.
Form a new word by adding a suitable suffix to the root word “eat”.
(a) ________able (b) ________ment (c) ________ly (d) ________ity
Answer:
(a) eatable

Students can Download Samacheer Kalvi 11th English Grammar Framing Sentences, Notes, Samacheer Kalvi 11th English Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Learn the Samacheer Kalvi 11th English Grammar to enhance your grammar skills like reading comprehension, passage writing, parts of speech, tenses, passive and active voice, and many other concepts in no time.

Tamilnadu Samacheer Kalvi 11th English Grammar Framing Sentences

Question 1.
Use the word “equal” as a noun, adjective, verb and adverb in your own sentences.
Answer:

• Sangeetha treated Tarun and Kavin as equals, (noun)
• Father gave equal share of his property to his sons and daughters, (adj)
• One plus one equals two. (verb)
• We decided to divide the amount equally, (adverb)

Question 2.
Use the word ‘tear’ as a noun, verb, adjective and adverb in your own sentences.
Answer:

• Don’t shed tears over loss of money, (noun)
• Don’t tear the book, (verb)
• She was given a tearful farewell, (adj)
• Sheela tearfully left the hall, (adverb)

Question 3.
Use the word ‘like’ as a noun, verb, adjective and preposition in your own sentences.
Answer:

• Great gurus are above likes and dislikes, (noun)
• You need to carry out your duties whether you like it or not. (verb)
• You must befriend like-minded persons, (adj)
• Raj an looks like his father, (preposition)

Question 4.
Use the word ‘well’ as a noun, verb and an adjective in your own sentences.
Answer:

• There is an unused well behind my house, (noun)
• Tears welled up in her eyes on hearing her father’s death, (verb)
• Sangeetha is well qualified for the Professor post, (adj)

Question 5.
Use the word “fine” as an adjective, a noun and a verb.
Answer:

• She wore a fine jewel which caught everyone’s eyes, (adj)
• The driver was asked to pay fine for skipping the red signal, (noun)
• I was fined for over-speeding, (verb)

Question 6.
Use the word “after” as an adverb, a preposition and conjunction.
Answer:

• Jill came tumbling after, (adv)
• He returned after the accident, (prep)
• After Martin finished his studies, he returned to India, (conjunction)

Question 7.
Use the word “wrong” as an adjective, adverb and a noun.
Answer:

• You have taken the wrong road, (adj)
• Hari was wrongly arrested, (adv)
• We must differentiate the right and wrong, (noun)

Question 8.
Use the word “each” as an adjective and a pronoun.
Answer:

• Each day brings its opportunity, (adj)
• I received a rupee from each, (pronoun)

Question 9.
Use the word “as” as an adverb and a conjunction.
Answer:

• We walked as fast as we could, (adv)
• As he was late, we went without him. (conj)

Question 10.
Use the word “fast” as a noun, an adjective and adverb.
Answer:

• He didn’t take anything during the fast, (noun)
• I missed the fast train, (adj)
• She speaks fast, (adv)

Students can Download Commerce Chapter 11 Types of Banks Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Samacheer Kalvi 11th Commerce Solutions Chapter 11 Types of Banks

Samacheer Kalvi 11th Commerce Types of Banks Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
Which bank is not a Industrial Bank?
(a) ICICI
(b) HSBC
(c) SIDBI
(d) IDBI
Answer:
(b) HSBC

Question 2.
The Local Area Banks are promoting
(a) Rural savings
(b) Business savings
(c) Industrial development
(d) Agricultural development
Answer:
(a) Rural savings

Question 3.
Foreign banks are begun their operation since
(a) 1978
(b) 1979
(c) 1980
(d) 1981
Answer:
(c) 1980

II. Very Short Answer Questions

Question 1.
Give the meaning of Commercial Banks.
Answer:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculturists, Industries, Transport, etc. in order to earn a profit. They also provide other banking services.
E.g: State Bank of India, Karur Vysa Bank.

Question 2.
What do you mean by Industrial Banks?
Answer:
Huge finance required for investment, expansion, and modernisation of big industries and others is granted by a separate type of banks called development Banks. They are also called industrial banks.

Question 3.
Briefly explain about Correspondent Banks?
Answer:
It is a kind of financial institution which provides services on behalf of other, equal or unequal financial institutions. It facilitates wire transfers, conduct business transactions, accept deposits and gather documents on behalf of another financial institution.

Question 4.
What are Foreign Banks?
Answer:
Banks which have registered office in a foreign country and branches in India are called foreign banks.

III. Short Answer Questions

Question 1.
Write a short note on Local Area Banks. Give two examples.
Answer:
The local Area Bank (LAB) scheme was introduced in August 1996. It is a small private sector bank established in rural and semi-urban areas. Each bank serves two or three adjoining districts only. The main objective of these banks is to mobilise rural savings (accepts deposits) and invest them in the same area.

Among the 227 applications 10 banks were considered for approval and six were given license under section 22 of the Banking Regulation Act, 1949, only three Local Area Banks are functioning now.
E.g: Coastal Local Area Bank, Vijayawada, Andhra Pradesh, Subhadra Local Area Bank Limited, Kolhapur, Maharashtra.

Question 2.
Answer:
What are the objectives involved in Regional Rural Banks?
Answer:
Their objective is to develop the rural economy and play a supplementary role in cooperative societies. They mobilise deposits from the rural public and provide finance to rural artisans, small entrepreneurs, and farmers and try to avoid their dependency on money lenders. As of 31.3.2016, there were 56 RRBs in India with 14,494 branches. They are regulated and supervised by NABARD.

Question 3.
Mention the purposes of Agricultural and Co-operative banks.
Answer:
All the agriculture and cooperative banks in India are owned by their customers and members who are farmers, small traders, and others. These banks are either urban-based or rural-based. Their main objective is to provide service to its members for rural and agricultural development and not profit earning.

Compared to the commercial banks they offer less variety of services as the bye-laws do not permit all commercial bank activities. National Cooperative Development Corporation (NCDC) concentrates on providing loans and grants to State Governments for financing cooperative societies.

IV. Long Answer Questions

Question 1.
Explain the various types of banks based on the organization with examples.
Answer:
1. Commercial banks:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport, etc. in order to earn a profit. Their lending is in comparatively small amounts and mostly for the short and medium periods. e.g.. State Bank of India

2. Development Banks:
Huge finance required for investment, expansion, and modernisation of big industries and others is granted by a separate type of banks called development Banks. They are also called industrial banks, e.g., IFCI, SIDBl.

3. Cooperative Banks:
All cooperative banks in India are owned by their customers or members who are farmers, small traders, and others. Cooperative banks in India are either urban-based or rural-based. example NAFED, Tamil Nadu State Apex Cooperative Bank – Head Office, Chennai.

4. Foreign Banks:
Banks which have registered office in a foreign country and branches in India are called foreign banks, e.g., Bank of America – USA.

5. Regional Rural Banks (RRBs):
The RRBs were formed under the Regional Rural Bank Act 1976, jointly by the Central Government, State Government, and a sponsor bank, for example, Pandian Grama Bank.

Question 2.
Explain the types of banks based on ownership patterns.
Answer:
Any bank in which not less than 51 percent of shares are owned by the Government is called Government banks or public sector commercial banks (Total 21). All nationalized banks (19 banks, in 2017), SBIand IDBI Ltd. are public sector commercial banks. All of them are joint-stock company type banks. E.g.: SIDBI, EXIM bank, etc. All banking companies owned by private peóple are called private sector commercial banks.

In 1969, there were 14 private banks which were concentrated in cities and towns. Their objective is to earn more profits. The government paid the share capital of those banks to the private owners and took over as Government banks. This is called the nationalization of banks. There are 19 nationalized banks now:
Examples:

• Nationalised Banks: Indian bank, Indian Overseas Bank, etc.
• Public Sector Banks: State Bank of India, IDBI Bank Ltd., etc.
• Private Sector Banks: Lakshmi Vila Bank, Karur Vysya Bank, etc.

Samacheer Kalvi 11th Commerce Cooperative Organisation Additional Questions and Answers

I. Choose the Correct Answer:

Question 1.
Patru, Varavu, Selavu, Alabama, Nashtam which all, collectively known as ‘Iynthogai’ is otherwise called ……………..
(a) Trial Balance
(b) Ledger
(c) Journal
(d) Transaction
Answer:
(a) Trial Balance

Question 2.
Bank of Hindustan was the first bank in India established in ……………..
(a) 1771
(b) 1770
(c) 1932
(d) 1930
Answer:
(b) 1770

Question 3.
The General Bank of India was established in ……………..
(a) 1786
(b) 1796
(c) 1766
(d) 1787
Answer:
(a) 1786

Question 4.
Bank of Calcutta was the first joint-stock bank established in
(a) 1806
(b) 1807
(c) 1805
(d) 1808
Answer:
(a) 1806

Question 5.
World bank otherwise called ……………..
(a) IBRD
(b) IMF
(c) RBI
(d) SBI
Answer:
(a) IBRD

Question 6.
International Monetary Fund (IMF) in which India became the member in ……………..
(a) 1947
(b) 1946
(c) 1945
(d) 1950
Answer:
(c) 1945

Question 7.
The state bank of India came into being in ……………..
(a) 1995
(b) 1945
(c) 1955
(d) 1965
Answer:
(c) 1955

II. Very Short Answer Questions:

Question 1.
What do you mean by Cooperative banks?
Answer:
All cooperative banks in India are owned by their customers or members who are farmers, small traders, and others. Cooperative banks in India are either urban-based or rural-based.

Question 2.
What is a Scheduled bank?
Answer:
All banks which satisfied the norms and included in the Second Schedule to the RBI Act, 1934 are called scheduled banks.

Case Study

Question 1.
You are the Agricultural bank manager; a farmer approaches you for a loan from your bank for purchasing a tractor and other farm equipment. How would you sanction the loan?
Answer:
National Bank for Agriculture and Rural Development (NABARD) is such a bank National Cooperative Development Corporation (NCDC). These banks are giving bank loans for agriculture. If I were a bank manager, I ask the farmer the details of security. Land documents and other securities must be collected from the agriculturist. Then I check the productivity of his land.

How much earnings from that land in every year. If the regular incomes and yielding getting from that land, we can allow loan sanction for that farmer. Before that the terms and conditions of the loan sanction letter to be given. He has to read and put the signature in that credit letter.

Question 2.
Due to natural calamities, the farmer could not repay the loan. He has no other way to repay the loan. How to collect a loan from the farmer?
Answer:
We can ask the Government if any policy has been changed and sanctioned any compensations. Otherwise, we can ask him whether insurance took the harvesting land. If he did the insurance policy, the Insurance company can give the compensations and we can collect from them, or we can give notice and give the auction on that land and recover money from that auction by the land document. The land was hypothecated by the bank and the loan was given. So we can have a chance to recover that loan.