12th Economics - Book Back Answers - Unit 3 - English Medium Guides

 

 

Plus Two / 12th Economics - Book Back Answers - Chapter 3 - English Medium

Tamil Nadu Board 12th Standard Economics - Chapter 3: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Chapter 3 from the Tamil Nadu State Board 12th Standard Economics 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 Chapter 3 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!

Chapter 3: Theories of Employment and Income

I. Choose the correct answer.

1. If every able bodied person who is willing to work at the prevailing wage rate is employed called __________
(a) Full employment
(b) Under employment
(c) Unemployment
(d) Employment opportunity
Answer Key:
(a) Full employment

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

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

4. The main concern 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 Key:
(b) Economy is always in the state of equilibrium

5. J.B. Say is a ________________
(a) Neo Classical Economist
(b) Classical Economist
(c) Modern Economist
(d) New Economist
Answer Key:
(b) Classical Economist

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 Key:
(d) Under employment

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 Key:
(c) Law of Markets

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

9. _________Flexibility brings equality between saving and investment.
(a) Demand
(b) Supply
(c) Capital
(d) Rate of interest
Answer Key:
(d) Rate of interest

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

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 Key:
(c) Effective demand

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

13. Aggregate supply is equal to_______
(a) C + I + G
(b) C + S + G + (x-m)
(c) C + S + T + (x-m)
(d) C + S + T + Rf
Answer Key:
(d) C + S + T + Rf

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 Key:
(c) State intervention in certain situation

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 Key:
(d) Less aggregate demand in relation to productive capacity.

16. Classical theory advocates________
(a) Balanced budget
(b) Unbalanced budget
(c) Surplus budget
(d) Deficit budget
Answer Key:
(a) Balanced budget

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

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

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 Key:
(a) Rate of interest

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 Key:
(b) Automatic price mechanism

II.Answer the following questions.

12th Economics (soon)

III. Answer the following questions.

12th Economics (Soon)

IV. Answer the following questions.

12th Economics (Soon)