11th Economics - Book Back Answers - Unit 1 - English Medium Guides

  

 

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Tamil Nadu Board 11th Standard Economics - Unit 1: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Unit 1 – Economics from the Tamil Nadu State Board 11th Standard textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

    We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

    By going through this material, you’ll gain a strong understanding of Economics Unit 1 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

• 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following 
• 2 Mark Questions: Answer briefly 
• 3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 11 students! Prepare well and aim for top scores. Thank you!

Unit 1:

I. Multiple Choice questions.

1. ‘Economics is a study of mankind in the ordinary business of life’ -It is the statement of

a. Adam Smith

b. Lionel Robbins

c. Alfred Marshall

d. Samuelson

Answer key:

c. Alfred Marshall  

 

2. The basic problem studied in Economics is

a. Unlimited wants

b. Unlimited means

c. Scarcity

d. Strategy to meet all our wants

Answer key:

 c. Scarcity

 

3. Microeconomics is concerned with

a. The economy as a whole

b. Different sectors of an economy

c. The study of individual economic units behaviour

d. The interactions within the entire economy

Answer key:

c. The study of individual economic units behaviour

  

4. Which of the following is a microeconomics statement?

a. The real domestic output increased by 2.5 percent last year.

b. Unemployment was 9.8 percent of the labour force last year.

c. The price of wheat determines its demand

d. The general price level increased by 4 percent last year.

Answer key:

c. The price of wheat determines its demand  

 

5. Find the odd one out:

a. “An inquiry into the nature and the causes of the Wealth of Nations”

b. “Principles of Economics”

c. “Nature and Significance of Economic Science”

d. “Ceteris paribus”

Answer key:

d. “Ceteris paribus”  

 

6. The equilibrium price is the price at which

a. Everything is sold

b. Buyers spend their money

c. Quantity demanded equals quantity supplied

d. Excess demand is zero

Answer key:

c. Quantity demanded equals quantity supplied  

 

7. Author of “An Inquiry into the Nature and Causes of Wealth of Nations”

a. Alfred Marshall

b. Adam Smith

c. Lionel Robbins

d. Paul A Samuelson

Answer key:

b. Adam Smith  

 

8. “Economics studies human behaviour as a relationship between ends and scarce means which have alternative uses” is the definition of economics of

a. Lionel Robbins

b. Adam Smith

c. Alfred Marshall

d. Paul A Samuelson

 Answer key:

a. Lionel Robbins 

 

9. Who is the Father of Economics?

a. Max Muller

b. Adam Smith

c. Karl Marx

d. Paul A Samuelson

Answer key:

b. Adam Smith  

 

10. “Economics is a science” The basis of this statement is—

a. Relation between cause and effect

b. Use of deductive method and inductive method for the formations of laws

c. Experiments

d. All of the above

Answer key:

d. All of the above 

 

11. Utility means

a. Equilibrium point at which demand and supply are equal

b. Want-satisfying capacity of goods and services

c. Total value of commodity

d. Desire for goods and services

Answer key:

b. Want-satisfying capacity of goods and services  

 

12. A market is

a. Only a place to buy things

b. Only a place to sell things

c. Only a place where prices adjust

d. A system where persons buy and sell goods directly or indirectly

Answer key:

d. A system where persons buy and sell goods directly or indirectly  

 

13. Which one of the following is not a point in the Welfare Definition of Economics?

a. Study of an ordinary man

b. Economics does not focus on wealth alone

c. Economics is the study of material welfare

d. Economics deals with unlimited wants and limited means

Answer key:

d. Economics deals with unlimited wants and limited means 

 

14. Growth definition takes into account

a. The problem of choice in the dynamic framework of Economics

b. The problem of unlimited means in relation to wants

c. The production and distribution of wealth

d. The material welfare of human beings

Answer key:

a. The problem of choice in the dynamic framework of Economics  

 

15. Which theory is generally included under micro economics?

a. Price Theory

b. Income Theory

c. Employment Theory

d. Trade Theory

 Answer key:

a. Price Theory  

 

16. _____________have exchange value and their ownership rights can be established and exchanged

a. Goods

b. Services

c. Markets

d. Revenue

Answer key:

a. Goods  

 

17. Identify the correct characteristics of utility

a. It is equivalent to ‘usefulness’

b. It has moral significance

c. It is same as pleasure

d. It depends upon consumer’s mental attitude

Answer key:

d. It depends upon consumer’s mental attitude  

 

18. Who has given scarcity definition of economics?

a. Adam Smith

b. Marshall

c. Robbins

d. Robertson

Answer key:

c. Robbins  

 

19. The process of reasoning from particular to general is

a. Deductive method

b. Inductive method

c. Positive economics

d. Normative economics

Answer key:

b. Inductive method  

 

20. Total revenue is equal to total output sold multiplied by

a. Price

b. Total cost

c. Marginal revenue

d. Marginal cost

Answer key:

a. Price

  

II. Answer the following questions in one or two sentences.

21. What is meant by Economics?

    The term ‘Economics’ means ‘management of households’.

 

22. Define microeconomics.

    Micro Economics deals with the behaviour of individual economic units.

 

23. What are goods?

    Any thing that satisfies a human want can be considered as goods in Economics.

 

24. Distinguish between goods and services.

Goods	Services
Tangible	Intangible
Can be stored	cannot be stored

 

25. Name any two types of utility

    1.Form Utility

    2.Time Utility

    3.Place Utility

 

26. Define positive economics.

    Positive economics analyses cause and effect relationship.

 

27.Give the meaning of Deductive method

    Deductive method process moves from general to particular. 

 

III. Answer the following questions in one paragraph.

28. Explain the scarcity definition of Economics and assess it.

Definition:

    “Economics is a science which studies human behaviour as a relationship between ends and scarce     means which have alternative uses”.

Major Features.

    a. Ends refer to human wants.

    b. Resources or means that got to satisfy the unlimited human wants.

 

29. What are the crucial decisions involving ‘what is produced?’

    1. Whether to produce more of food, clothing and housing or to have more luxury goods

    2. Whether to have more agricultural goods or to have industrial goods and services

    3. Whether to have more consumption goods or to have investment goods

 

30. Explain different types of economic activities.

    1. Consumption

    2. Production

    3.  Distribution

    4. Exchange

 

31. Elucidate different features of services.

    1. Intangible

    2. Heterogeneous

    3. Inseparable from their makers

    4. Perishable

 

32. What are the important features of utility?

    1. Utility is psychological.

    2. Utility is not equivalent to usefulness.

    3. Utility is not the same as pleasure.

 

33. Distinguish between microeconomics and macroeconomics.

Micro Economics	Macro Economics
Micro means small	Macro means large
Micro Economics is the study of individuals households, firms etc.	Macro Economy concerned with the economy as a whole
Price theory	Income theory

34. Compare positive economics and normative economics.

Positive Economics	Normative Economics
Positive science deals with ‘what it is’	Normative Economics deals with “what ought to be”
Can be proved	Not based on Facts
Based on facts	Not based on facts

IV. Answer the following questions in about a page.

35. Compare and contrast various definitions of Economics. 

36. Explain various Steps of Deductive and Inductive methods.

 

 37. Elaborate the nature and scope of Economics.

Nature of Economics:

·         Smith’s Wealth - Definition

·         Marshall’s Welfare - Definition

·         Robbins’ Scarcity - Definition

·        Samuelson’s Growth - Definition, 

 

Scope of Economics

    The scope of the subject of Economics refers to on the subject-matter of Economics.

    1. All human activities related to wealth constitute the subject-matter of Economics.

    2. Production, consumption and capital formation are called the basic economic

    activities of an economy.

    3. The flow chart give the scope of economics

 

38. Explain basic problems of the economy with the help of  Production Possibility Curve

    The Problem of Choice between relatively scarce commodities due to limited productive resources with the help of a “Geometric Device” (that is production possibility curve)

Assumptions

(i) The time period does not change.

(ii) Techniques of production are fixed.

(iii) Only two goods can be produced from the given resources.

Production Possibilities	Book	Food
P1	100	0
P2	500	50
P3	100	0

Explanation: 

1. The quantity of food is shown on x-axis and the number of cars is shown on y-axis.

2. The different three production possibilities are being shown as point P1 P2 P3

3. A maximum of 100 tons of food can be produced, given the existing technology.

4. If on the other hand, all resources are instead used for producing Books, 100 books can be produced.

5. In between these two extremes, possibilities exist