Tamil Nadu Board 12th 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 12th 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 12 students! Prepare well and aim for top scores. Thank you!
Unit 1: Introduction To Macro Economics
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
2. The basic problem studied in Economics is
a. Unlimited wants
b. Unlimited means
c. Scarcity
d. Strategy to meet all our wants
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
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.
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”
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
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
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
9. Who is the Father of Economics?
a. Max Muller
b. Adam Smith
c. Karl Marx
d. Paul A Samuelson
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
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
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
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
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
15. Which theory is generally included under micro economics?
a. Price Theory
b. Income Theory
c. Employment Theory
d. Trade Theory
16. ....................... have exchange value and their ownership rights can be established and exchanged
a. Goods
b. Services
c. Markets
d. Revenue
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
18. Who has given scarcity definition of economics?
a. Adam Smith
b. Marshall
c. Robbins
d. Robertson
19. The process of reasoning from particular to general is
a. Deductive method
b. Inductive method
c. Positive economics
d. Normative economics
20. Total revenue is equal to total output sold multiplied by
a. Price
b. Total cost
c. Marginal revenue
d. Marginal cost
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 about a 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?’
² 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
² 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 one page.
35. Compare and contrast various definitions of Economics.
|
|
Wealth Definition
|
Welfare Definition
|
|
Author
|
Adam Smith
|
Alfred Marshal |
|
Definition
|
“Economics as the science of wealth” |
“Economics is a study of mankind in the ordinary business of life” |
|
Criticisms
|
It teaches selfishness which is against ethics
|
Consider immaterial things |
|
|
Scarcity Definition
|
Growth Definition
|
|
Author |
Lionel Robbins |
Paul Samuelson |
|
“Definition”
|
“Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
|
“Economics is the study of how men and society choose, with or without the use of money, to produce various commodities over time, and distribute them for consumption, now and in the future” |
|
Criticisms
|
Does not make any distinction between goods conducive to human welfare and goods that are not
|
Samuelson’s definition is applicable also in a barter economy, where money is not used.
|
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 Production Possibility Curve
Ø 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
0 Comments:
Post a Comment