Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Students can download 11th Economics Chapter 9 Development Experiences in India Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 9 Development Experiences in India

Samacheer Kalvi 11th Economics Development Experiences in India Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Which of the following is the way of Privatisation?
(a) Disinvestment
(b) Denationalization
(c) Franchising
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Countries today are to be …………………… for their growth.
(a) Dependent
(b) Interdependent
(c) Free trade
(d) Capitalist
Answer:
(b) Interdependent

Question 3.
The Arguments against LPG is ……………………….
(a) Economic growth
(b) More investment
(c) Disparities among people and regions
(d) Modernization
Answer:
(c) Disparities among people and regions

Question 4.
Expansion of FDI ……………………….
(a) Foreign Private Investment
(b) Foreign Portfolio
(c) Foreign Direct Investment
(d) Forex Private Investment
Answer:
(c) Foreign Direct Investment

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 5.
India is the largest producer of ……………………. in the world.
(a) Fruits
(b) Gold
(c) Petrol
(d) Diesel
Answer:
(a) Fruits

Question 6.
Foreign investment includes …………………………
(a) FDI only
(b) FPI and FFI
(c) FDI and FPI
(d) FDI and FFI
Answer:
(c) FDI and FPI

Question 7.
The Special Economic Zones policy was announced in ………………………..
(a) April 2000
(b) July 1990
(c) April 1980
(d) July 1970
Answer:
(a) April 2000

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 8.
Agricultural Produce Market Committee is a ………………………….
(a) Advisory body
(b) Statutory body
(c) Both a and b
(d) None of these above
Answer:
(b) Statutory body

Question 9.
Goods and Services Tax is ………………………..
(a) A multi point tax
(b) Having cascading effects
(c) Like Value Added Tax
(d) A single point tax with no cascading effects.
Answer:
(d) A single point tax with no cascading effects.

Question 10.
The New Foreign Trade Policy was announced in the year ……………………….
(a) 2000
(b) 2002
(c) 2010
(d) 2015
Answer:
(d) 2015

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 11.
Financial Sector reforms is mainly related to ………………………..
(a) Insurance Sector
(b) Banking Sector
(c) Both a and b
(d) Transport Sector
Answer:
(c) Both a and b

Question 12.
The Goods and Services Tax Act came into effect on ……………………..
(a) 1st July 2017
(b) 1st July 2016
(c) 1st January 2017
(d) 1st January 2016
Answer:
(a) 1st July 2017

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 13.
The new economic policy is concerned with the following
(a) Foreign investment
(b) Foreign technology
(c) Foreign trade
(d) All the above
Answer:
(d) All the above

Question 14.
The recommendation of Narashimham Committee Report was submitted in the year ………………………
(a) 1990
(b) 1991
(c) 1995
(d) 2000
Answer:
(b) 1991

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 15.
The farmers have access to credit under Kisan credit card scheme through the following except ……………………….
(a) Co – operative banks
(b) RRBs
(c) Public sector banks
(d) All the above
Answer:
(a) Co – operative banks

Question 16.
The Raja Chelliah Committee on Trade Policy Reforms suggested the peak rate on import duties at ……………………….
(a) 25%
(b) 50%
(c) 60%
(d) 100%
Answer:
(b) 50%

Question 17.
The first ever SEZ in India was set up at ………………………….
(a) Mumbai
(b) Chennai
(c) Kandla
(d) Cochin
Answer:
(c) Kandla

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 18.
‘The Hindu Rate of Growth’ coined by Raj Krishna refers to ………………………
(a) Low rate of economic growth
(b) High proportion of Hindu population
(c) Stable GDP
(d) None
Answer:
(a) Low rate of economic growth

Question 19.
The highest rate of tax under GST is ………………………. (as on July1, 2017).
(a) 18%
(b) 24%
(c) 28%
(d) 32%
Answer:
(c) 28%

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 20.
The transfer of ownership from public sector to private sector is known as ……………………..
(a) Globalization
(b) Liberalization
(c) Privatization
(d) Nationalization
Answer:
(c) Privatization

PART – B

Answer the following questions in one or two sentences.

Question 21.
Why was structural reform implemented in the Indian Economy?
Answer:
Indian economy introduced structural reforms to face the economic crisis in the form of the balance of payments problem in 1991.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 22.
State the reasons for implementing LPG?
Answer:
Liberalization:

  • Liberalization refers to the removal of the relaxation of governmental restrictions in all stages of the industry.
  • De-licensing, decontrol, deregulation, subsidies (incentives), and a greater role for financial institutions are the various facets of liberalization.

Privatization:

  • Privatization means the transfer of ownership and management of enterprises from the public sector to the private sector.
  • Denationalization, disinvestment, and opening exclusive public sector enterprises to the private sector are the gateways to privatization.

Globalization:

  • Globalization refers to the integration of the domestic (Indian) economy with the rest of the world. Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are some of the measures towards globalization.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 23.
State the meaning of Privatization?
Answer:
Privatization means the transfer of ownership and management of enterprises from the public sector to the private sector.

Question 24.
Define disinvestment?
Answer:
Disinvestment means selling of government securities of Public Sector Undertakings [PSUs] to other PSUs or private sectors or banks. This process has not been fully implemented.

Question 25.
Write three policy initiatives introduced in 1991 – 92 to correct the fiscal imbalance?
Answer:

  1. Reduction in fertilizer subsidy.
  2. Abolition of subsidy on sugar.
  3. Disinvestment of a part of the government’s equity holdings in select public sector undertakings.
  4. Expenditures on welfare measures were reduced.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 26.
State the meaning of Special Economic Zones?
Answer:

  1. The Special Economic Zones [SEZs] policy was announced in April 2000.
  2. As per the Special Economic Zones Act of 2005, the government has so far notified about 400 such zones in the country.
  3. The SEZ deprives the farmers of their land and livelihood, it is harmful to agriculture.
  4. To promote export and Industrial growth in line with globalization the SEZ was introduced in many countries.

Question 27.
State the various components of Central government schemes under post-harvest measures?
Answer:

  1. Mega food parks, Integrated cold chain, value addition preservation infrastructure, modernization of slaughterhouse.
  2. Scheme for quality-assurance, codex standards, research and development, and other promotional activities.

PART – C

Answer the following questions in one paragraph.

Question 28.
How do you justify the merits of Privatization?
Answer:

  1. Privatization means the transfer of ownership and management of enterprises from the public sector to the private sector.
  2. Denationalization, disinvestment, and opening exclusive public sector enterprises to the private sector are the gateways to privatization.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 29.
What are the measures taken towards Globalization?
Answer:
Globalization refers to the integration of the domestic economy with the rest of the world. Import liberalization through reduction of tariff and non-tariff barriers, opening the doors to foreign direct investment and foreign portfolio investment are some of the measures towards globalization.

Question 30.
Write a note on Foreign investment policy?
Answer:

  1. Foreign Investment Policy measure has enhanced the Industrial competition and improved the business environment in the country.
  2. Foreign investments including FDI and FPI were allowed.
  3. The government announced a specified list of high-technology and high-investment priority industries.
  4. Automatic permission was granted for Foreign Direct Investment [FDI] upto 51 % foreign equity.
  5. The limit was raised to 74% and subsequently to 100% for many of these industries.
  6. Foreign Investment Promotion Board [FIPB] has been set up to negotiate with international firms and approve foreign direct investment.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 31.
Give a short note on Cold Storage?
Answer:
Problems relating to the marketing of fruits and vegetables is related to their perishability. Perishability is responsible for high marketing costs, market gluts, price fluctuations, and other similar problems.

In order to overcome this constraint, the Government of India and the ministry of agriculture promulgated “Cold Storage Order 1964” under section 3 of the Essential Commodities Act, 1955. However, the cold storage facility is still very poor and highly inadequate.

Question 32.
Mention the Functions of APMC?
Answer:
The Agriculture Produce Market Committee [APMC] is a statutory body constituted by State Government in order to trade in agricultural or horticultural or livestock products.

Functions of APMC:

  1. To promote public private partnership in the ambit of agricultural markets.
  2. To provide market led extension services to farmer.
  3. To bring transparency in pricing system and transactions taking place in market in a transparent manner.
  4. To ensure payments to the farmers for the sale of agricultural produce on the same day.
  5. To promote agricultural activities.
  6. To display data on arrivals and rates of agricultural produce from time to time into the market.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 33.
List out the features of the new trade policy?
Answer:
The trade policy of 1 April 1992 freed imports of almost all intermediate and capital goods. Only 71 items remained restricted. This would affect the domestic industries. Rationalization of tariff structure and removal of quantitative restrictions.

Question 34.
What is GST? Write its advantages?
Answer:

  1. GST (Goods and Services Tax) is defined as the tax levied when a consumer buys a good or service.
  2. Removing cascading tax effect
  3. Single point tax
  4. Higher threshold for registration
  5. Composition scheme for small business
  6. The online simpler procedure under GST
  7. Defined treatment for e-commerce
  8. Increased efficiency in logistics
  9. Regulating the unorganized sector

PART – D

Answer the following questions in about a page.

Question 35.
Discuss the important initiatives taken by the Government of India towards Industrial Policy?
Answer:
The Special Economic Zones (SEZs) policy was announced in April 2000.
The major objectives of SEZs are:

  1. To enhance foreign investment especially to attract foreign direct investment (FDI) and thereby increasing GDP.
  2. To increase shares in global export.
  3. To generate additional economic activity.
  4. To create employment opportunities.
  5. To develop infrastructure facilities.
  6. To exchange technology in the global market.

Main characteristics of SEZs:
The geographically demarked area with physical security.

  1. Administrated by a single body/authority.
  2. Streamlined procedures.
  3. Having a separate custom area
  4. Governed by more liberal economic laws.
  5. Greater freedom to the firms located in SEZs.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 36.
Explain the objectives and characteristics of SEZs?
Answer:

  1. The Special Economic Zones [SEZs] Policy was announced in April 2000.
  2. The Special Economic Zones Act of 2005, the government has so far notified about 400 such zones in the country.

1. Major objectives of SEZs:

  • To enhance foreign investment, especially to attract foreign direct investment [FDI] and thereby increasing GDP.
  • To increase shares in Global Export (International Business).
  • To generate additional economic activity.
  • To create employment opportunities.
  • To develop infrastructure facilities.
  • To exchange technology in the global market.

2. Main Characteristics of SEZ:

  • The geographically demarked area with physical security.
  • Administrated by single body authority.
  • Streamlined procedures.
  • Having separate custom area.
  • Governed by more liberal economic laws.
  • Greater freedom to the firms located in SEZs.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 37.
Describe the Salient features of EXIM policy [2015 – 2020]?
Answer:
The new EXIM policy has been formulated focusing on increasing in exports scenario, boosting production, and supporting the concepts like Make in India and Digital India.

  1. Reduce export obligations by 25% and give a boost to domestic manufacturing supporting the “Make in India” concept.
  2. As a step to the Digital India concept, the online procedure to upload digitally signed documents, and a mobile app for filing tax, stamp duty has been developed.
  3. Repeated submission of physical copies of documents is not required.
  4. Export obligation period for export items related to defense, military store, aerospace, and nuclear energy to be 24 months.
  5. EXIM policy 2015 – 2020 is expected to double the share of India in World Trade from the present level of 3% by the year 2020. This appears to the too ambitious.

Samacheer Kalvi 11th Economics Development Experiences in India Additional Important Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Which organization established EXIM bank?
(a) Reserve Bank of India
(b) Central Bank
(c) State Bank
(d) ICICI bank.
Answer:
(a) Reserve Bank of India

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
……………………… records all the visible and invisible items.
(a) Balance of payments
(b) Exports
(c) Imports
(d) None
Answer:
(a) Balance of payments

Question 3.
The new export and import policy was announced in the year ………………………..
(a) 1970
(b) 1980
(c) 1991
(d) 2002
Answer:
(c) 1991

Question 4.
The foreign investment policy can be broadly classified into …………………….. categories.
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(c) Four

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 5.
Globalization means …………………………
(a) Integration of the economy with the world economy
(b) Increasing degrees of openness in respect of international trade.
(c) process of transformation of the world into a single economic unit.
(d) All the above
Answer:
(d) All the above

Question 6.
The term …………………… means the integration of the economy of each country with the world economy.
(a) Globalization
(b) Privatization
(c) Liberalization
(d) None of the above
Answer:
(a) Globalization

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 7.
Major policy measures have been launched as a part of the programmes ………………………….
(a) LPG
(b) Liberalization
(c) Privatization
(d) Globalization
Answer:
(a) LPG

Question 8.
……………………. is the major function of WTO.
(a) Administering WTO trade agreements
(b) Forum for trade negotiations
(c) Handling trade disputes
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 9.
Foreign trade creates that facilities of …………………………
(a) Imports of capital goods
(b) Flow of technology
(c) Better allocation of resources
(d) All the above
Answer:
(d) All the above

Question 10.
………………………. trade refers to the trade or exchange of goods and services between two or more countries.
(a) Internal
(b) International
(c) Domestic
(d) None
Answer:
(b) International

PART – B

Answer the following questions in one or two sentences.

Question 1.
Define “Raja – J. Chelliah Committee”?
Answer:

  1. The Chelliah Committee’s Report had suggested a drastic reduction in import duties.
  2. It had suggested a peak rate of 50 percent.
  3. As a first step towards a gradual reduction in the tariffs, the 1991-92 budget had reduced the peak rate of import duty from more than 300 percent to 150 percent.
  4. The process of lowering the customs tariffs was carried further in successive budgets.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Mention the “Basic Economic Problems”?
Answer:
The Basic Economic Problems such as

  1. Poverty
  2. Unemployment
  3. Discrimination
  4. Social exclusion
  5. Deprivation
  6. Poor health care
  7. Rising inflation
  8. Agricultural stagnation
  9. Food insecurity and
  10. Labour migration

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 3.
Give a short note on “Abolition of MRTP Act”?
Answer:

  1. The New Industrial policy of 1991 has abolished the Monopoly and Restrictive Trade Practices Act 1969.
  2. In 2010, the Competition Commission has emerged as the watchdog in monitoring competitive practices in the economy.
  3. The policy caused big changes including the emergence of a strong and competitive private sector and a sizable number of foreign companies in India.

PART – C

Answer the following questions in one paragraph.

Question 1.
Define “Kisan Credit Card Scheme”?
Answer:

  1. A Kisan Credit Card [KCC] is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit.
  2. It was launched in 1998 by the Reserve Bank of India and NABARD.
  3. The Scheme aims to reduce farmer dependence on the informal banking sector for credit – which can be very expensive and suck them into a debt spiral.
  4. The card is offered by co-operative banks, regional rural banks, and public sector banks.
  5. The working of the KCC, the government has advised banks to convert the KCC into a smart card cum debit card.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Mention how the Indian economy liberalization policy helped in the recovery?
Answer:
The liberalization policy helped in the recovery of the Indian Economy:
There was enormous and regular flow of foreign direct investment [FDI]

  1. Foreign exchange reserves started rising.
  2. There was rapid Industrialization.
  3. The pattern of consumption started improving.
  4. Infrastructure facilities such as express highways, metro rails, flyovers, and airports started expanding.
  5. The benefits of this growth in some sectors have not reached the marginalized sections of the community.
  6. The process of development has generated serious social, economic, political, demographic, and ecological issues and challenges.

Question 3.
Explain the impact of LPG on the Indian economy?
Answer:

  1. According to International Monetary Fund, World Economic Outlook, the GDP (nominal) of India in 2016 at current prices is $2,251 billion.
  2. India contributed 2.99% of the total world’s GDP on an exchange rate basis.
  3. India shared 17.5 percent of the total world population and 2.4 percent of the world Surface area.
  4. India was now the 7th largest economy in the world.
  5. India was in 3rd position after China and Japan among Asian countries. India shared 8.50% of total Asia’s GDP (nominal) in 2016.

PART – D

Answer the following questions in about a page.

Question 1.
Explain the Monetary and Financial Sector Reforms?
Answer:
Monetary reforms aimed at doing away with interest rate distortions and rationalizing the structure of lending rates. The new policy tried in many ways to make the banking system more efficient.

Some of the measures undertaken were:
1. Reserve Requirements:

  • Reduction in Statutory liquidity ratio [SLR] and the cash reserve ratio [CRR] was recommended by the Narasimham Committee Report, 1991.
  • It was proposed to cut down the SLR from 38.5 percent to 25 percent within a time span of three years.

2. Interest Rate Liberalisation:
RBI controlled:

  • The interest rates are payable on deposits.
  • The interest rate could be charged for bank loans.
  • Greater competition among public sector, private sector, and foreign banks and elimination of administrative constraints.
  • Liberalization of bank branch licensing policy in order to rationalize the existing branch network.
  • Banks were given the freedom to relocate branches and open specialized branches.
  • Guidelines for opening new private sector banks.
  • New accounting norms regarding the classification of assets and provisions of bad debt were introduced in tune with the Narasimham Committee Report.

Samacheer Kalvi 11th Economics Guide Chapter 9 Development Experiences in India

Question 2.
Explain the Agrarian crisis after reforms?
Answer:
1. High input Costs:

  • The biggest input for farmers is seeds.
  • Before liberalization, farmers across the country had access to seeds from state government institutions.
  • The institutions produced their own seeds and were responsible for their quality and price.
  • India’s seed market was opened up to global agribusinesses.
  • The deregulation of many state government institutions were closed down in 2003.
  • Seed prices shot up and fake seeds made an appearance in a big way.

2. Cutback in agricultural subsidies:

  • Farmers were encouraged to shift from growing a mixture of traditional crops to export-oriented “cash crops” like chili, cotton, and tobacco.
  • Liberalization policies reduced the subsides on pesticide and fertilizer and elasticity.
  • As a result, prices have increased by 300%.

3. Reduction of import duties:

  • With a view to open India’s markets, the liberalization reforms also withdrew tariffs and duties on imports.
  • By 2001, India completely removed restrictions on imports of almost 1,500 items including food.

4. Paucity of credit facilities:

  • The lending pattern of commercial banks, including nationalized banks, drastically changed.
  • As a result, the loan was not easily adequate.
  • This has forced the farmers to rely on moneylenders who charge exorbitant rates of interest.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Students can download 11th Economics Chapter 8 Indian Economy Before and After Independence Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 8 Indian Economy Before and After Independence

Samacheer Kalvi 11th Economics Indian Economy Before and After Independence Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
The arrival of Vasco da Gama in Calicut, India ………………………
(a) 1498
(b) 1948
(c) 1689
(d) 1849
Answer:
(a) 1498

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
In 1614 Sir Thomas Roe was successful in getting permission from ……………………
(a) Akbar
(b) Shajahan
(c) Jahangir
(d) Noorjahan
Answer:
(c) Jahangir

Question 3.
The power for governance of India was transferred from the East India Company (EIC) to the British crown in ………………………..
(a) 1758
(b) 1858
(c) 1958
(d) 1658
Answer:
(b) 1858

Question 4.
Ryotwari system was initially introduced in …………………….
(a) Kerala
(b) Bengal
(c) Tamil Nadu
(d) Maharashtra
Answer:
(c) Tamil Nadu

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 5.
First World War started in the year ……………………..
(a) 1914
(b) 1814
(c) 1941
(d) 1841
Answer:
(a) 1914

Question 6.
When did the Government of India declared its first Industrial Policy?
(a) 1956
(b) 1991
(c) 1948
(d) 2000
Answer:
(c) 1948

Question 7.
The objective of the Industrial Policy 1956 was ………………………..
(a) Develop heavy industries
(b) Develop agricultural sector only
(c) Develop private sector only
(d) Develop cottage industries only
Answer:
(a) Develop heavy industries

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 8.
The industry which was de-reserved in 1993.
(a) Railways
(b) Mining of copper and zinc
(c) Atomic energy
(d) Atomic minerals
Answer:
(b) Mining of copper and zinc

Question 9.
The father of Green Revolution in India was
(a) M.S. Swaminathan
(b) Gandhi
(c) Visweswaraiah
(d) N.R. Viswanathan
Answer:
(a) M.S. Swaminathan

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 10.
How many commercial banks were nationalised in 1969?
(a) 10
(b) 12
(c) 14
(d) 16
Answer:
(c) 14

Question 11.
The main objective of nationalisation of banks was …………………………
(a) Private social welfare
(b) Social welfare
(c) To earn
(d) Industries monopoly
Answer:
(b) Social welfare

Question 12.
The Planning Commission was setup in the year ………………………….
(a) 1950
(b) 1955
(c) 1960
(d) 1952
Answer:
(a) 1950

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 13.
In the first five year plan, The top priority was given to ……………………… Sector.
(a) Service
(b) Industrial
(c) Agriculture
(d) Bank
Answer:
(c) Agriculture

Question 14.
Tenth Five year plan period was ……………………….
(a) 1992 – 1997
(b) 2002 – 2007
(c) 2007 – 2012
(d) 1997 – 2002
Answer:
(b) 2002 – 2007

Question 15.
According to HDR (2016), India ranked …………………….. out of 188 coutries.
(a) 130
(b) 131
(c) 135
(d) 145
Answer:
(b) 131

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 16.
Annual Plans formed in the year ………………………
(a) 1989 – 1991
(b) 1990 – 1992
(c) 2000 – 2001
(d) 1981 – 1983
Answer:
(b) 1990 – 1992

Question 17.
The Oldest large scale industry in India ………………………
(a) Cotton
(b) Jute
(c) Steel
(d) Cement
Answer:
(a) Cotton

Question 18.
Human Development Index (HDI) was developed by …………………………
(a) Jawaharlal Nehru
(b) M.K. Gandhi
(c) Amartiya Sen
(d) Tagore
Answer:
(c) Amartiya Sen

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 19.
The main theme of the Twelth Five Year Plan ………………………..
(a) Faster and more inclusive growth
(b) Growth with social Justice
(c) Socialistic pattern of society
(d) Taster, more inclusive and sustainable growth
Answer:
(d) Taster, more inclusive and sustainable growth

Question 20.
The PQLI was developed by ……………………….
(a) Planning Commission
(b) Nehru
(c) Morris
(d) Morrisd.Biswajeet
Answer:
(c) Morris

PART – B

Answer the following questions in one or two sentences.

Question 21.
What are the Phases of colonial exploitation of India?
Answer:
The period of merchant capital, the period of industrial capital, the period of finance capital.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 22.
Name out the different types of land tenure that existed in India before independence?
Answer:
The three different types of land tenure existed in India before independence. They were:

  1. Zamindari System (or) Landlord-Tenant System
  2. Mahalwari System (or) Communal System of farming
  3. Ryotwari System (or) the Owner-Cultivator System

Question 23.
State the features that distinguish a land tenure system from another system?
Answer:
The land tenure system differs as

  1. Who owns the land?
  2. Who cultivates the land?
  3. Who is responsible for paying the land revenue to the government?

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 24.
List out the weaknesses of the Green Revolution?
Answer:
Weaknesses of the Green Revolution:

  1. Indian Agriculture was still a gamble of the monsoons.
  2. This strategy needed heavy investment in seeds, fertilizers, pesticides, and water.
  3. The income gap between large, marginal, and small farmers had increased.
  4. The gap between irrigated and rain-fed areas had widened.
  5. Except in Punjab, and to some extent in Haryana, Farm mechanization had created widespread unemployment among agricultural labourers in the rural areas.
  6. Larger chemical use and inorganic materials reduced the soil fertility and spoiled human health. Now organic farming is encouraged.

Question 25.
What are the objectives of the Tenth Five Year plan?
Answer:

  1. Double the per capita income in the next 10 years.
  2. Aimed to reduce the poverty ratio to 15% by 2012.
  3. The growth target was 8.0% but it achieved only 7.2%

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 26.
What is the difference between HDI and PQLI?
Answer:

HDI

PQLI

1. The Inclusion of Income. The exclusion of Income
2. Both Physical and financial attributes of development Only the physical aspects of life.

Question 27.
Mention the indicators which are used to calculate HDI?
Answer:

  1. Life expectancy index.
  2. Educational index.
  3. GDP per capita.

PART – C

Answer the following questions in one paragraph:

Question 28.
Explain the Period of Merchant Capital?
Answer:

  1. The period of merchant capital was from 1757 to 1813.
  2. The only aim of the East India Company was to earn profit by establishing monopoly trade in the goods with India and East India.
  3. During this period, India had been considered as the best hunting ground for capital by the East Indian company to develop industrial capitalism is Britain.
  4. When Bengal and South India came under the political shake of the East India company in 1750s and 1760s, the objective of monopoly trade was fulfilled.
  5. The company administration succeeded in generating huge surpluses which were repatriated to England, and the Indian leaders linked this problem of land revenue with that of the drain.
  6. Above all, the officers of the company were unscrupulous and corrupt.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 29.
The Handicrafts declined in India in British Period. Why?
Answer:

  1. Through discriminatory tariff policy, the British Government purposefully destroyed the handicrafts.
  2. With the disappearance of Nawabs and Kings, there was no one to protect Indian handicrafts.
  3. Indian products could not compete with machine-made products.
  4. The introduction of railways in India increased the domestic market for British goods.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 30.
Elucidate the different types of land tenure systems in colonial India?
Answer:
Land Tenure refers to the system of land ownership and management. The features that distinguish a land tenure system from the others relate to the following:

  • Who owns the land
  • Who cultivates the land.
  • Who is responsible for paying the land revenue to the government.

Based on these questions, three different types of land tenure existed in India before Independence. They were:

  • Zamindari System or the Landlord-Tenant System.
  • Mahalwari System or Communal System of Farming.
  • Ryotwari System or the Owner-Cultivator System.

Zamindari System or the Landlord-Tenant System:

  • This system was created by the British East India Company when in 1793, Lord Cornwallis introduced the ‘Permanent Settlement Act’.
  • Under this system, the landlord or the Zamindars were declared as the owners of the land and they were responsible to pay the land revenue to the government.
  • The share of the government in total rent collected was fixed as 10/11th, the balance going to the Zamindars as remuneration.

Mahalwari System or Communal System of Farming:

  • After the introduction of this system, it was later extended to Madhya Pradesh and Punjab.
  • The ownership of the land was maintained by the collective body usually the villagers which served as a unit of management.
  • They distributed land among the peasants and collected revenue from them and pay it to the state.

Ryotwari System (or) the Owner-Cultivator System:

  • This system was initially introduced in Tamil Nadu and later extended to Maharashtra, Gujarat, Assam, Coorg, East Punjab, and Madhya Pradesh.
  • Under this system, the ownership rights of use and control of land were held by the tiller himself.
  • There was a direct relationship between owners and tillers. This system was the least oppressive system before Independence.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 31.
State the reasons for the nationalization of commercial banks?
Answer:

  1. The main objective of economic planning aimed at social welfare.
  2. Before independence commercial banks were in the private sector.
  3. These commercial banks failed in helping the government to achieve social objectives of planning.
  4. Therefore, the government decided to nationalize 14 major commercial banks in 1969.

Question 32.
Write any three objectives of Industrial Policy 1991?
Answer:

  1. The economic development of a country particularly depends on the process of Industrialisation.
  2. At the time of Independence, India inherited a weak and shallow Industrial base.
  3. Therefore during the post-Independence period, the Government of India took the special emphasis on the development of a solid Industrial base.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 33.
Give a note on Twelfth Five Year Plan?
Answer:
Twelfth Five Year Plan [2012 – 2017]

  1. Twelfth five-year plan (2012 – 17).
  2. Its main theme is “Faster more inclusive and sustainable growth”
  3. Its growth rate target is 8%

Question 34.
What is PQLI?
Answer:

  1. “PQLI” – means Physical Quality of Life Index [PQLI].
    Morris D Morris developed the Physical Quality of life Index ( PQLI).
  2. The PQLI is a measure to calculate the quality of life (well being of a country) Three indicators are:
    • Life expectancy
    • Infant mortality rate
    • Literacy rate
  3. A scale of each indicator ranges from the number 1 to 100.
  4. Number 1 represents the worst performance by any country.
  5. 100 is the best performance.

PART – D

Answer the following questions in about a page.

Question 35.
Discuss the Indian economy during the British Period?
Answer:
Britain had exploited India over a period of two centuries of its colonial rule. On the basis of the form of colonial exploitation, economic historians have divided the whole period into three phases namely the period of merchant capital, the period of industrial capital, and the period of finance capital.

1. Period of merchant capital (1757 to 1813):
The only aim of the East India company was to earn profit by establishing monopoly trade. India was considered as the best hunting ground for capital. By attaining political power the objective of monopoly trade was fulfilled. The company administration succeeded in generating huge surpluses which were repatriated to England.

2. Period of industrial capital (1813 to 1858):
India had become a market for British textiles. Indians were exploited by fixing low prices for exports and high price for imports. India’s traditional handicrafts were thrown out of gear.

3. Period of financial capital (Late 19th century – 1947) : Finance imperialism began to entrench. Britain decided to make massive investments in various fields by plundering Indian capital.

4. The land tenure system in India: Land tenure refers to the system of land ownership and management.
The Zamindari system, the Mahalwari system and the Ryotwari system were the systems of land tenure introduced by British.

5. Problems of British rule : Their profit motives led to drain of resources from India. The handicraft industries were collapsed.
The British rule stunted the growth of Indian enterprise. Capital formation in India was retarded.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 36.
Explain the role of SSIs in economic development?
Answer:
1. Provide Employment:

  • SSIs use labor-intensive techniques. Hence, they provide employment opportunities to a large number of people. Thus, they reduce the unemployment problem to a great extent.
  • SSIs provide employment to artisans, technically qualified persons and professionals, people engaged in traditional arts, people in villages and unorganized sectors.
  • The employment-capital ratio is high for the SSIs.

2. Bring Balanced Regional Development:

  • SSIs promote decentralized development of industries as most of the SSIs are set up in backward and rural areas.
  • They remove regional disparities by industrializing rural and backward areas and bring balanced regional development.
  • They help to reduce the problems of congestion, slums, sanitation and pollution in cities. They are mostly found in outside city limits.
  • They help in improving the standard of living of people residing in suburban and rural areas in India.
  • The entrepreneurial talent is tapped in different regions and the income is also distributed instead of being concentrated in the hands of a few individuals or business families.

3. Help in Mobilization of Local Resources:

  • SSIs help to mobilize and utilize local resources like small savings, entrepreneurial talent etc., of the entrepreneurs, which might otherwise remain idle and unutilized.
  • They pave way for promoting traditional family skills and handicrafts. There is a great demand for handicraft goods in developed countries.
  • They help to improve the growth of local entrepreneurs and self-employed professionals in small towns and villages in India

4. Pave for Optimisation of Capital:

  • SSIs require less capital per unit of output. They provide quick return on investment due to shorter gestation period. The payback period is quite short in SSIs.
  • SSIs function as a stabilizing force by providing high output-capital ratio as well as high employment – capital ratio.
  • They encourage the people living in rural areas and small towns to mobilize savings and channelize them into industrial activities.

5. Promote Exports:

  • SSIs do not require sophisticated machinery. Hence, import the machines from abroad is not necessary. On the other hand, there is a great demand for goods produced by SSIs.
  • Thus they reduce the pressure on the country’s balance of payments. However, in the recent past large scale industries are able to borrow large funds with a low-interest rates and spend large sums on advertisements. Hence SSSs are gradually vanishing.
  • SSIs earn valuable foreign exchange through exports from India.

6. Complement Large Scale Industries:

  • SSIs play a complementary role to large scale sector and support large scale industries.
  • SSIs provide parts, components, accessories to large scale industries and meet the requirements of large scale industries through setting up units near the large scale units.
  • SSIs serve as ancillaries to large scale units.

7. Meet Consumer Demands:

  • SSIs produce a wide range of products required by consumers in India.
  • Hence, they serve as an anti-inflationary force by providing goods of daily use.

8. Develop Entrepreneurship:

  • SSIs, help to develop a class of entrepreneurs in society. They help the job seekers to become job givers.
  • They promote self-employment and a spirit of self-reliance in society.
  • SSIs, help to increase the per capita income of India in various ways.
  • They facilitate the development of backward areas and weaker sections of the society.
  • SSIs are adept in distributing national income in a more efficient and equitable manner among the various participants of the society.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 37.
Explain the objectives of the nationalization of a commercial bank?
Answer:

  1. The main objective of nationalization was to attain social welfare. Sectors such as agriculture, small and village industries were in need of funds for their expansion and further economic development.
  2. It helped to curb private monopolies in order to ensure a smooth supply of credit to socially desirable sections.
  3. To encourage the banking habit among the rural population.
  4. To reduce the regional imbalances where the banking facilities were not available.
  5. After nationalization, new bank branches were opened in both rural and urban areas, and they created credit facilities mainly for the agriculture sector and its allied activities.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 38.
Describe the performance of the 12th Five Year Plans in India?
Answer:
First Five Year Plan – [1951 – 1956]

  • It was based on the Harrod-Domar Model.
  • Its main focus was on the agricultural development of the country.
  • This plan was successful and achieved a GDP growth rate of 3.6%. [more than its target]

Second Five Year Plan – [1956 -1961]

  • It was based on the P.C. Mahalanobis Model.
  • Its main focus was on the industrial development of the country.
  • This plan was successful and achieved a growth rate of 4.1%

Third Five Year Plan – [1961- 1966]

  • This plan was called ‘Gadgil Yojana’.
  • The main target of this plan was to make the economy independent and to reach self-prepared position or take off.
  • Due to the Indo-China war, this plan could not achieve its growth target of 5.6%. Indian Economy Before and After Independence 137

Fourth Five Year Plan – [1969 – 1974]

  • There are two main objectives of this plan (i.e) growth with stability and progressive achievement of self-reliance.
  • This plan failed and could achieve a growth rate of 3.3% only against the target of 5.7%.

Fifth Five Year Plan – [1974 – 1979]

  • In this plan top priority was given to agriculture, next came industry and mines.
  • This plan achieved a growth rate of 4.8% against the target of 4.4%.

Sixth Five Year Plan – [1980 -1985]

  • The basic objective of this plan was poverty eradication and technological self-reliance. GARIBI-HATAO was the motto. It was based on investment yojana.
  • Its growth target was 5.2% but it achieved 5.7%

Seventh Five Year Plan – [1985 – 1990]

  • This plan included the establishment of a self-sufficient economy, opportunities for productive employment.
  • For the first time, due to the pressure from the private sector, the private sector got priority over the public sector.
  • Its growth target was 5.0% but it achieved 6.0%

Eighth Five Year Plan – [1992- 1997]

  • In this plan, the top priority was given to the development of human resources (i.e) employment, education, and public health.
  • During this plan, the New Economic Policy of India was introduced.
  • This plan was successful and got an annual growth rate of 6.8% against the target of 5.6%.

Ninth Five Year Plan – [1997 – 2002]

  • The main focus of this plan was “growth with justice and equity”.
  • This plan failed to achieve the growth target of 7% and the Indian economy grew only at the rate of 5.6%.

Tenth Five Year Plan – [2002 – 2007]

  • This plan aimed to double the per capita income of India in the next 10 years.
  • It aimed to reduce the poverty ratio by 15% by 2012.
  • Its growth target was 8.0% but it achieved only 7.2%

Eleventh Five Year Plan – [2007 – 2012]

  • Its main theme was “faster and more inclusive growth”.
  • Its growth rate target was 8.1% but it achieved only 7.9%

Twelfth Five Year Plan – [2012 – 2017]

  • Its main theme is “faster, more inclusive and sustainable growth”.
  • Its growth rate target is 8%
  • Since the Indian Independence, the five-year plans of India played a very prominent role in the economic development of the country.

These plans had guided the Government as to how it should utilize scarce resources so that maximum benefits can be gained. It is worthy to mention here that Indian Government adopted the concept of five-year plans from Russia.

Samacheer Kalvi 11th Economics Indian Economy Before and After Independence Additional Important Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
……………………… is the backbone of our economic system.
(a) Agriculture
(b) Industry
(c) Service
(d) Banking
Answer:
(a) Agriculture

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
Disguised unemployment is related to the sector.
(a) Industry
(b) Service
(c) Agriculture
(d) Insurance
Answer:
(c) Agriculture

Question 3.
India’s major ……………………. crops are sugarcane, jute, cotton, tea, coffee, etc.
(a) Food
(b) Cash
(c) Marketing
(d) Commercial
Answer:
(b) Cash

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 4.
Most modem and rich countries have well developed through their early ………………………… revolution.
(a) Agriculture
(b) Industrial
(c) French
(d) Green
Answer:
(b) Industrial

Question 5.
The income elasticity of Industrial goods is very higher than that of ………………………… goods.
(a) Primary
(b) Secondary
(c) Industrial
(d) Manufacturing.
Answer:
(a) Primary

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 6.
Which of the following is called as an important agro-based industry?
(a) Steel
(b) Cement
(c) Sugar
(d) Jute
Answer:
(c) Sugar

Question 7.
……………………… Industries normally do not use power.
(a) Small scale
(b) Large scale
(c) Cottage
(d) Manufacturing
Answer:
(c) Cottage

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 8.
Planning is India is ……………………..
(a) Centralized planning
(b) Democratic planning
(c) Partial planning
(d) Indicative planning
Answer:
(b) Democratic planning

Question 9.
The rate of ………………………. formation indicates its rate of improvement.
(a) Human capital
(b) Money capital
(c) Physical capital
(d) Monetary capital
Answer:
(a) Human capital

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 10.
Nowadays investment in ……………………… capital is very important.
(a) Money
(b) Physical
(c) Monetary
(d) Human
Answer:
(d) Human

PART – B

Answer the following questions in one or two sentences.

Question 1.
Define “Green Revolution”?
Answer:

  1. The term Green Revolution refers to the technological breakthrough in agricultural practices.
  2. During the 1960s the traditional agricultural practices were gradually replaced by modem technology and agricultural practices in India.
  3. Initially, the new technology was tried in 1960 – 1961 as a pilot project in Seven districts.
  4. It was called the High Yielding Varieties Programme [HYVP].

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
Define “Silk Industry”?
Answer:

  1. India is the second-largest [first being China] country in the world in producing natural silk.
  2. At present, India produces about 16% of the silk of the world.
  3. India enjoys the distinction of being the only country producing all the five known commercial varieties of silk viz Mulberry, Tropical Tussar, Oak Tussar, Eri, and Muga.

Question 3.
When did the petroleum and the natural gas commission was established?
Answer:

  1. The first successful oil well was dug in India in 1889 at Digboi, Assam.
  2. At present, a number of regions with oil reserves have been identified and oil is being extracted in these regions.
  3. For exploration purposes, the Oil and Natural Gas Commission [ONGC] was established in 1956 at Dehradun, Uttarkhand.

PART – C

Answer the following questions in one paragraph:

Question 1.
Explain the Micro, Small, and Medium manufacturing Enterprises?
Answer:

  1. Micro Manufacturing Enterprises: The investment in plant and machinery does not exceed ₹25 lakhs.
  2. Small Manufacturing Enterprises: The investment in plant and machinery is more than twenty-five lakh rupees but does not exceed ₹5 crores.
  3. Medium Manufacturing Enterprises: The investment in plant and machinery is more than ₹5 crores but not exceeding ₹10 crores.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
Describe the Micro, Small, and medium service enterprises?
Answer:

  1. Micro Service Enterprises: The investment in equipment does not exceed ₹10 lakhs.
  2. Small Service Industries: The investment in equipment is more than ₹10 lakhs but does not exceed ₹2 crores.
  3. Medium Service Enterprise: The investment in equipment is more than ₹2 crores but does not exceed ₹5 crores.

Question 3.
Explain the Iron and Steel Industry?
Answer:
Iron and Steel Industry:

  1. First Steel Industry at Kulti, near Jharia, West Bengal – Bengal ironworks company in 1870.
  2. First large-scale steel plant TISCO at Jamshedpur in 1907 followed by IISCO at Bumper in 1919. Both belonged to the private sector.
  3. The first public sector unit was “Vishveshvaraya Iron and Steel Works” at Bhadrawati. All these are managed by SAIL (at present all-important steel plants except TISCO, are under the public sector).
  4. Steel Authority of India Ltd. [SAIL] was established in 1974 and was made responsible for the development of the steel industry.
  5. Presently India is the eighth largest steel producing country in the world.

PART – D

Answer the following questions in about a page.

Question 1.
Describe the Achievement of the Green Revolution?
Answer:
Achievement of the Green Revolution:

  1. The major achievement of the new strategy was to boost the production of major cereals viz., wheat and rice.
  2. The Green Revolution was confined only to High Yielding Varieties [HYV-] cereals, mainly rice, wheat, maize, and jowar.
  3. This strategy was mainly directed to increase the production of commercial crops or cash crops such as sugarcane, cotton, jute oilseeds, and potatoes.
  4. Per hectare productivity of all crops had increased due to better seeds.
  5. Green Revolution had a positive effect on the development of Industries, which manufactured agricultural tools like tractors, engines, thrashers, and pumping sets.
  6. Green Revolution had bought prosperity to rural people.
  7. Increased production had generated employment opportunities for rural masses.
  8. Due to this, their standard of living had increased.
  9. Due to multiple cropping and more use of chemical fertilizers, the demand for labour increased.
  10. Financial resources were provided by banks and co-operative societies.
  11. These banks provided loans to farmers on easy terms.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
Explain the problems of British Rule?
Answer:
Problems of British Rule

  1. The British rule stunted the growth of Indian enterprise.
  2. The economic policies of the British checked and retarded capital formation in India.
  3. The drain of wealth financed capital development in Britain.
  4. Indian agricultural sector became stagnant and deteriorated even when a large section of the Indian population was dependent on agriculture for subsistence.
  5. The British rule in India led to the collapse of handicraft industries without making any significant contribution to the development of any modem industrial base.
  6. Some efforts by the colonial British regime in developing the plantations, mines, jute mills, banking, and shipping, mainly promoted a system of capitalist firms that were managed by foreigners. These profit motives led to a further drain of resources from India.

ACTIVITY

Question 1.
To know the value of freedom, students can collect pictures of Places like Jallianwala Bagh, Meerut, Thandi, and photos of freedom fighters?
Answer:
The Jallianwalabagh Massacre in Amritsar

  1. Jallianwala Bagh is one of the main tourist attractions around Amritsar.
  2. The tourists, as well as the neighboring people, visited here.
  3. Jallianwala bagh is situated at a throwaway distance from the Golden temple, a famous tourist spot in the Amritsar.
  4. Jallianwala Bagh in Amritsar is a good looking garden and contains a Sikh spiritual shrine.
  5. Jallianwala Bagh history was a well-liked ground for holding meetings and protests during the freedom movement in India.
  6. The massacre memorial one of the monuments in India was inaugurated on 13th April in 1961.
  7. Dr. Rajendra Prasad, the president of India, inaugurated the memorial in the Jallianwala Bagh, Amritsar at that time.
  8. The Bagh has a well that is also fine cosseted by the Jallianwala Bagh Massacre memorial.
  9. Jallianwala Bagh is connected with the most tragic day in the history of Indian Freedom.
  10. Jallianwala Bagh is a large garden like space extended over to an area of 6.5 acres and the most noticeable structure in this place is the memorial of the 1919 massacre victims.
  11. One can also witness the wall with gunshot marks.
  12. Jallianwala Bagh National Memorial Trust administrates the activities of this place.

The Jallianwala Bagh Massacre:

  1. Jallianwala Bagh reminds us about the great tragedy and it evokes a nationalistic feeling in every Indian.
  2. It is the place where the crudest massacre in the history of Indian freedom fight took place in the year 1919.
  3. To offer tribute to the innocent people who died in the massacre, this place was built at the spot of the horrible event.
  4. On 13th April 1919, a large crowd gathered to protect the take into custody of two Indian Freedom leaders.
  5. The crowd was defenseless and included women as well as children.
  6. The British General, Edward Dyer ordered his soldiers to fire on the unarmed and helpless crowd.
  7. The continuous firing went on targeting the crowd while the people were trapped inside the Jallianwala Bagh, which had only one narrow gate.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence img 1

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Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence

Question 2.
Display the demonstration effect of present Indians in culture, dressing, and lifestyle to emphasize the Swadhesi?
Answer:
Swadeshi Movement was a popular strategy for eradicating British rule and for improving the economic conditions of the country.

Mahatma Gandhi:

  1. The concept of swadeshi, as per Mahatma Gandhi was to attain self-sufficiency which included the employment of unemployed people by encouraging village Industries and towards building a non-violent society.
  2. The main policies of the swadeshi movement included boycotting all types of British products and the restoration of all domestic products.

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence img 3

Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence img 4

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Samacheer Kalvi 11th Economics Guide Chapter 8 Indian Economy Before and After Independence img 6

Bal Gangadhar Tilak, Lala Lajpat Rai, Bipin chandra pal. [Bal, Lai, Pal].

  1. The chief forerunners of the swadeshi movement were Bal, Lai. Pal.
  2. The writings and speeches of Bal Gangadhar Tilak and his associates paved the initial way.
  3. Tilak reaches out to the masses through popular festivals.
  4. He transformed the traditional Ganapathi Utsav into a public celebration where patriotic ideas could be spread.
  5. Later he inaugurated a Shivaji festival for the same purpose.
  6. In 1906, Bengal honoured the great Maratha as a national hero.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Students can download 11th Economics Chapter 7 Indian Economy Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 7 Indian Economy

Samacheer Kalvi 11th Economics Indian Economy Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
The main gold mine region in Karnataka is ………………………….
(a) Kolar
(b) Ramgiri
(c) Anantpur
(d) Cochin
Answer:
(a) Kolar

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 2.
Economic growth of a country is measured by national income indicated by …………………………..
(a) GNP
(b) GDP
(c) NNP
(d) Per capita income
Answer:
(b) GDP

Question 3.
Which one of the following is a developed nations?
(a) Mexico
(b) Ghana
(c) France
(d) Sri Lanka
Answer:
(c) France

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 4.
The position of Indian Economy among the other strongest economies in the world is ……………………….
(a) Fourth
(b) Seventh
(c) Fifth
(d) Tenth
Answer:
(b) Seventh

Question 5.
Mixed economy means ………………………..
(a) Private sectors and banks
(b) Co-existence of Public and Private sectors
(c) Public sectors and banks
(d) Public sectors only
Answer:
(b) Co-existence of Public and Private sectors

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 6.
The weakness of Indian Economy is ………………………..
(a) Economic disparities
(b) Mixed economy
(c) Urbanisation
(d) Adequate employment opportunities
Answer:
(a) Economic disparities

Question 7.
A scientific study of the characteristics of population is …………………………..
(a) Topography
(b) Demography
(c) Geography
(d) Philosophy
Answer:
(b) Demography

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 8.
The year 1961 is known as ……………………………
(a) Year of small divide
(b) Year of Population Explosion
(c) Year of Urbanisation
(d) Year of Great Divide
Answer:
(b) Year of Population Explosion

Question 9.
In which year the population of India crossed one billion mark?
(a) 2000
(b) 2001
(c) 2005
(d) 1991
Answer:
(b) 2001

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 10.
The number of deaths per thousand population is called as ………………………
(a) Crude Death Rate
(b) Crude Birth Rate
(c) Crude Infant Rate
(d) Maternal Mortality Rate
Answer:
(a) Crude Death Rate

Question 11.
The number of births per thousand population is called as ………………………
(a) Crude death rate
(b) Mortality rate
(c) Morbidity rate
(d) Crude Birth Rate
Answer:
(d) Crude Birth Rate

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 12.
Density of population = ………………………
(a) Land area / Total Population
(b) Land area / Employment
(c) Total Population / Land area of the region
(d) Total Population / Employment
Answer:
(c) Total Population / Land area of the region

Question 13.
Who introduced the National Development Council in India?
(a) Ambedkar
(b) Jawaharlal Nehru
(c) Radhakrishanan
(d) VKRV Rao
Answer:
(b) Jawaharlal Nehru

Question 14.
Who among the following propagated Gandhian Economic thinkings?
(a) Jawaharlar Nehru
(b) VKRV Rao
(c) JC Kumarappa
(d) A.K.Sen
Answer:
(c) JC Kumarappa

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 15.
The advocate of democratic socialism was ………………………..
(a) Jawaharlal Nehru
(b) P C Mahalanobis
(c) Dr. Rajendra Prasad
(d) Indira Gandhi
Answer:
(a) Jawaharlal Nehru

Question 16.
Ambedkar the problem studied by in the context of Indian Economy is ………………………..
(a) Small land holdings and their remedies
(b) Problem of Indian Currency
(c) Economics of socialism
(d) All of them
Answer:
(b) Problem of Indian Currency

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 17.
Gandhian Economics is based on the Principle ………………………..
(a) Socialistic idea
(b) Ethical foundation
(c) Gopala Krishna Gokhale
(d) Dadabhai Naoroji
Answer:
(b) Ethical foundation

Question 18.
VKRV Rao was a student of ………………………….
(a) JM Keynes
(b) Colin Clark
(c) Adam smith
(d) Alfred Marshal
Answer:
(a) JM Keynes

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 19.
Amartya Kumara Sen received the Nobel prize in Economics in the year …………………………
(a) 1998
(b) 2000
(c) 2008
(d) 2010
Answer:
(a) 1998

Question 20.
Thiruvalluvar economic ideas mainly dealt with ………………………….
(a) Wealth
(b) Poverty is the curse in the society
(c) Agriculture
(d) All of them
Answer:
(d) All of them

PART – B

Answer the following questions in one or two sentences.

Question 21.
Write the meaning of Economic Growth?
Answer:
A country’s economic growth is usually indicated by Gross Domestic Product (GDP). The GDP is the total monetary value of the goods and services produced by that country over a specific period of time, usually one year.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 22.
State any two features of a developed economy?
Answer:

  1. High National Income
  2. High Per Capita Income

Question 23.
Write a short note on natural resources?
Answer:
Natural resources are stock or reserve that can be drawn from nature. The major natural resources are land, forest, water, mineral, and energy.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 24.
Point out any one feature of the Indian economy?
Answer:
India has a mixed economy.

  1. Indian economy is a typical example of a mixed economy.
  2. This means both the private and public sectors co-exist and function smoothly.
  3. The fundamental and heavy industrial units are being operated under the public sector, while, due to the liberalization of the economy, the private sector has gained importance.
  4. This makes it a perfect model for public-private partnerships.

Question 25.
Give the meaning of non-renewable energy?
Answer:
The sources of energy which cannot be renewed or re-used are called non-renewable energy.
(Eg.) Coal, Oil, Gas, etc.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 26.
Give a short note on Sen’s ‘Choice of Technique’?
Answer:
Sen’s ‘Choice of Technique’ was a research work where he argued that in a labour surplus economy, generation of employment cannot be increased at the initial stage by the adaptation of capital – intensive technique.

Question 27.
List out the reasons for low per capita income as given by VKRV Rao?
Answer:
Rao gave the following reasons for low per capita income and low levels of per capita nutrition in India:

  1. Uneconomic holdings.
  2. Low levels of water availability for crops.
  3. Excess population pressure on agriculture due to the absence of a large industrial sector.
  4. Absence of capital.
  5. Absence of autonomy in currency policy.

PART – C

Answer the following questions in one paragraph.

Question 28.
Define Economic Development?
Answer:

  1. The level of economic development is indicated not just by GDP, but by an increase in citizen’s quality of life or well-being.
  2. The quality of life is being assessed by several indices such as Human Development Index [HDI]
  3. On the basis of the level of economic development, nations are classified as developed and developing economies.
  4. Developed economies are those countries which are industrialized.
  5. Developed economics are also termed as Advanced Countries.
  6. On the other hand, countries that have not fully utilized their resources like land, mines, workers, etc., and have low per capita income are termed as underdeveloped economics.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 29.
State Ambedkar’s Economic ideas on agricultural economics?
Answer:
Dr. B.R.Ambedkar was a versatile personality. In 1918, he published a paper “Smallholding in India and their remedies” citing Adam Smith’s “Wealth of Nations”, he made a fine distinction between “Consolidation of holdings” and “Enlargement of holdings”.

Question 30.
Write a short note on Village Sarvodhaya?
Answer:

  1. According to Gandhi, “Real India was to be found in the village and not in towns or cities”.
  2. So he suggested the development of self-sufficient self-dependent villages.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 31.
Write the strategy of Jawaharlal Nehru in India’s planning?
Answer:

  1. Jawahar lal Nehru was responsible for the introduction of planning in our country.
  2. To Nehru, the plan was essentially an integrated approach for development.
  3. He said the essence of planning is to find the best way to utilize all resources of manpower, money and so on.
  4. Planning for Nehru was essentially linked up with industrialization and eventual self-reliance for the country’s economic growth on a self-accelerating growth.
  5. Nehru carried through this basic strategy of planned development.

Question 32.
Write the VKRV Rao’s contribution on the multiplier concept?
Answer:

  1. VKRV Rao’s examination of the “Interrelation between investment, income and multiplier is an underdeveloped economy” [1952] was his major contribution to macroeconomic theory.
  2. Asa thinker, teacher, economic adviser, and direct policymaker, VKRV Rao followed the footstep of his great teacher, John Maynard Keynes.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 33.
Write a short note on Welfare Economics given by Amartya Sen?
Answer:

  1. Amartya Sen was awarded the Nobel prize for his contributions to welfare economics.
  2. Sen’s major point has been that the distribution of income/consumption among the persons below the poverty line is to be taken into account.
  3. Sen has focused on the poor, viewing them not as objects of pity requiring charitable hand-outs, but as disempowered folk needing empowerment in all aspects.

Question 34.
Explain social infrastructure?
Answer:

  1. Social infrastructure refers to those structures which are improving the quality of manpower and contribute indirectly towards the growth of an economy.
  2. These structures are outside the system of production and distribution.
  3. The development of these social structures help in increasing the efficiency and productivity of manpower.
  4. For example, schools, colleges, hospitals and other civic amenities.
  5. It is a fact that one of the reasons for the low productivity of Indian workers is the lack of development of social infrastructure.

Education in India:

  1. The Indian education system has flourished and developed with the growing needs of the economy.

Health in India:

  1. Health in India is a state government responsibility.
  2. The Central Council of Health and Welfare formulates the various health care projects and health department reform policies.

PART – D

Answer the following questions in about a page.

Question 35.
Explain the strong features of the Indian economy?
Answer:

  1. India has a mixed economy: In India, both private and public sectors coexist.
  2. Agriculture plays the key role: Around 60% of the people in India depend upon agriculture for their livelihood.
  3. An emerging market: India has a high potential for prospective growth which attracts FDI and FII.
  4. Emerging economy: As a result of rapid economic growth Indian economy has a place among the G20 countries.
  5. Fast-growing economy: India has emerged as the world’s fastest-growing economy in 2016-17 with 7.1% GDP next to China.
  6. Fast-growing service sector: The service sector, contributes a lion’s share of the GDP in India.
  7. Large domestic consumption: Due to large domestic consumption the standard of living has considerably improved and lifestyle has changed.
  8. paid growth of urban areas: Improved connectivity in transport and communication, education, and health have speeded up the pace of urbanization.
  9. Stable macroeconomy: The current year’s economic survey represents the Indian economy to be a heaven of macroeconomic stability, resilence and optimism.
  10. Demographic dividend: India is a proud owner of the maximum percentage of youth. This has invited foreign investments to the country and outsourcing opportunities.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 36.
Write the importance of mineral resources in India?
Answer:
Important Mineral Resources:
1. Iron -ore:

  • India possesses high-quality iron-ore in abundance.
  • The total reserves of iron ore in the country are about 14.630 million tonnes of hematite and 10,619 million tonnes of magnetite.
  • Hematite iron is mainly found is Chattisgarh, Jharkhand, Odisha, Goa, and Karnataka.
  • Some deposits of iron ore are also found in Kerala, Tamilnadu, and Andra Pradesh.

2. Coal and Lignite:

  • Coal is the largest available mineral resource.
  • India ranks third in the world after China and the USA in coal production.
  • The main centers of coal in India are West Bengal, Bihar, Madhya Pradesh, Maharashtra, Odisha, and Andhra Pradesh.
  • The bulk of the coal production comes from Bengal-Jharkhand coalfields.

3. Bauxite:

  • Bauxite is a main source of metal like aluminium.
  • Major reserves are concentrated in the East Coast bauxite deposits of Odisha and Andhra Pradesh.

4. Mica:

  • Mica is a heat-resisting mineral which is also a bad conductor of electricity.
  • It is used in electrical equipment as an insulator.
  • India stands first in sheet mica production and contributes 60% of mica trade in the world.
  • The important mica bearing pegmatite is found in Andhra Pradesh, Jharkhand, Bihar and Rajasthan.

5. Crude Oil:

  • Oil is being explored in India at many places of Assam and Gujarat.
  • Digboi, Badarpur, Naharkatia, Kasimpur, Palliaria, Rudrapur, Shivsagar, Mourn [All in Assam], and Hay of Khambhat, Ankleshwar and Kalor [All in Gujarat] are the important places of oil exploration in India.

6. Gold:

  • India possesses only a limited gold reserve.
  • There are only three main gold mine regions-Kolar Goldfield, Kolar district and Hutti Goldfield in Raichur district [both in Karnataka] and Ramgiri Goldfield in Anantpur district [Andhra Pradesh].

7. Diamond:

  • The total reserves of a diamond is estimated at around 4582, thousand carats which are mostly available in Panna [Madhya Pradesh], Rammallakota of Kumar district of Andhra
    Pradesh and also in the Basin of Krishna River.
  • The new Kimberlile fields have been discovered in Raipur and Bastar districts of Chhattisgarh, Nuapada and Bargarh districts of Odisha, Narayanpet-Maddur Krishna areas of Andhra Pradesh, and Raichur-Gulbarga districts of Karnataka.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 37.
Bring out Jawaharlal Nehru’s contribution to the idea of economic development?
Answer:
Jawahar Lal Nehru was one of the Chief builders of modem India. He was a great patriot, thinker and statesman. His ideas of economic development are :

1. Democracy : He was a firm believer in democracy. He believed in free speech, civil liberty, adult franchise and the rule of law and parliamentary democracy.

2. Secularism : Secularism is another signal contribution of Nehru to India. There are so many religions in India but there is no domination by religious majority.

3. Planning : Nehru was responsible for the introduction of planning in our country. The plan was essentially an integrated approach for development. Planning for Nehru was essentially linked up with industrialization and eventual self-reliance for the country’s economic growth on a self-accelerating growth.

4. Advancement of Science : Nehru made a great contribution to the advancement of Science, research, technology and industrial development. In his period, many IITs and research institutions were established. He always insisted on scientific temper.

5. Democratic socialism : Nehru put the country on the road towards a socialistic pattern of society. Nehru’s socialism is democratic socialism.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 38.
Write a brief note on the Gandhian economic ideas?
Answer:
Gandhian Economics is based on ethical foundations. Gandhi wrote, “Economics that hurts the moral well-being of an individual or a nation is immoral, and therefore, Sinful”. Again in 1924, Gandhi repeated the same belief “ that economy is untrue which ignores or disregards moral values”.

Salient features of Gandhian Economic Thought:
1. Village Republics:

  • India lives in villages.
  • He was interested in developing the villages as self-sufficient units.
  • He opposed the extensive use of machinery, urbanization, and industrialization.

2. On Machinery:

  • Gandhi described machinery as ‘Great sin’. He said that “Books could be written to demonstrate its evils”.
  • It is necessary to realize that machinery is bad.
  • Instead of welcoming machinery as a boon, we should look upon it as evil.
  • It would ultimately cease.

3. Industrialism:

  • Gandhi considered industrialism as a curse on mankind.
  • He thought industrialism depended entirely on a country’s capacity to exploit.

4. Decentralization :

  • Gandhi advocated a decentralized economy i. e., production at a large number of places on a small scale or production in the people’s homes.

5. Village Sarvodaya:

  • According to Gandhi, “ Real India was to be found in villages and not in towns or cities”.
  • So, he suggested the development of self-sufficient, self-dependent villages.

6. Bread Labour:

  • Gandhi realized the dignity of human labour.
  • He believed that God created man to eat his bread by the sweat of his brow.
  • Bread labour or body labour was the expression that Gandhi used to mean manual labour.

7. The Doctrine of Trusteeship:

  • Trusteeship provides a means of transforming the present capitalist order of society into an egalitarian one.

8. On the Food Problem:

  • Gandhi was against any sort of food controls.
  • Once India was begging for food grain, but now India tops the world with very large production of food grains, fruits, vegetables, milk, egg, meat etc.

9. On Population:

  • Gandhi opposed the method of population control through contraceptives.
  • He was, however, in favour of birth control through Brahmacharya or self-control.
  • He considered self-control as a sovereign remedy to the problem of over-population.

10. On Prohibition:

  • Gandhi advocated cent percent prohibition.
  • Gandhi regarded the use of liquor as a disease rather than a vice.
  • He felt that it was better for India to be poor than to have thousands of drunkards.
  • Many states depend on revenue from liquor sales.

Samacheer Kalvi 11th Economics Indian Economy Additional Important Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
The basic factors determining population growth are ………………………..
(a) Birth rate
(b) Death rate
(c) Migration
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 2.
……………………… is a crude indicator for living standard.
(a) Gross National Product [GNP]
(b) Gross Domestic Product [GDP]
(c) Net National Product [NNP]
(d) Per Capita Income [PCI]
Answer:
(a) Gross National Product [GNP]

Question 3.
India followed the ……………………… plan.
(a) Short term
(b) Long term
(c) Midterm
(d) Perspective
Answer:
(c) Midterm

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 4.
…………………….. is the basic causes of poverty.
(a) Low agriculture productivity
(b) Rapid growth of population
(c) Low saving and disguised unemployment
(d) All the above
Answer:
(d) All the above

Question 5.
In recent time India followed the ……………………… planning.
(a) Five year
(b) Indicative
(c) Modified
(d) Innovative
Answer:
(b) Indicative

Question 6.
……………………………. was responsible for the introduction of planning in our Country.
(a) Ambedkar
(b) Jawaharlal Nehru
(c) Radhakrishnan
(d) VKRV Rao.
Answer:
(b) Jawaharlal Nehru

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 7.
………………………. is the largest available mineral resource.
(a) Coal
(b) Iron-ore
(c) Bauxite
(d) Mica
Answer:
(a) Coal

Question 8.
The National Harbour board was set up in ………………………
(a) 1947
(b) 1948
(c) 1949
(d) 1950
Answer:
(d) 1950

Question 9.
India stands first in sheet mica production and contributes ……………………. % of mica trade in the world.
(a) 50%
(b) 60%
(c) 70%
(d) 80%
Answer:
(b) 60%

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 10.
……………………… is thereby also called as the backbone of the Indian economy.
(a) Agricultural
(b) Industrial
(c) Small Scale Industries
(d) Cottage industries
Answer:
(a) Agricultural

PART – B

Answer the following questions in one or two sentences.

Question 1.
List out the education system in India?
Answer:
The education system in India consists of primarily six levels:

  1. Nursery class
  2. Primary class
  3. Secondary level
  4. Higher secondary level
  5. Graduation
  6. Post-graduation

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 2.
Define “Renewable Resources’?
Answer:
Renewable energy sources
These are the kind of energy source which can be renewed or reused again and again. These kinds of materials do not exhaust or literally speaking these are available in abundant or infinite quantity. Example for this kind include

  1. Solar energy
  2. Wind energy
  3. Tidal energy
  4. Geothermal energy
  5. Biomass energy

Question 3.
Write a short note on Infrastructure development?
Answer:
Infrastructural development means the development of many support facilities. These facilities may be divided into (z) economic infrastructure and (ii) social infrastructure. Economic infrastructure includes – transport, communication, energy, irrigation, monetary and financial institutions. Social infrastructure includes – education, training and research, health, housing and civic amenities.

PART – C

Answer the following questions in one paragraph.

Question 1.
Explain the education in India?
Answer:
Education in India:

  1. Imparting education on an organized basis dates back to the days of ‘Gurukul’ in India.
  2. The Indian education system has flourished and developed with the growing needs of the economy.
  3. The Ministry & Human Resource Development (MHRD) in India formulates education policy in India and also undertakes education programs.

The education system in India:

  1. Education in India until 1976 was the responsibility of the State governments.
  2. It was then brought under concurrent list [both Centre and State]
  3. The Centre is represented by the Ministry of Human Resource Development decides India’s education budget.
  4. The education system in India consists of primarily six levels:
    • Nursery class
    • Primary class
    • Secondary level
    • Higher secondary level
    • Graduation
    • Post-graduation

Education Institutions in India:

  1. Education in India follows the 10, +2 pattern.
  2. The accreditation of the universities is decided under the University Grant Commission Act.
  3. The Education Department consists of various schools, colleges, and universities imparting education on fair means for all sections of the society.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 2.
List out the density of the population?
Answer:
The density of population:
The density of population refers to the average number of persons residing per square kilometer. It represents the man-land ratio. As the total land area remains the same, an increase in population causes the density of the population to rise.
The density of population = Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy img 1
Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy img 2

  • Just before Independence, the density of the population was less than 100.
  • After Independence, it has increased rapidly from 117 in 1951 to 325 in 2001.
  • According to the 2011 census, the present Density of the population is 382.
  • The pressure of population on land has been rising.
  • Kerala, West Bengal, Bihar, and Uttar Pradesh have density higher than India’s average density.
  • Bihar is the most densely populated state.
  • Arunachal Pradesh has a low density of population of only 17 persons. Indian Economy 125

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 3.
Explain “Transport”?
Answer:
Transport:

  1. For the sustained economic growth of a country, a well-connected and efficient transport system is needed.
  2. India has a good network of rail, road coastal shipping, and air transport.
  3. The total length of roads in India being over 30 lakh km.
  4. India has one of the largest road networks in the world.
  5. In terms of railroads, India has a broad network of railroad lines, the largest in Asia and the fourth largest in the world.
  6. The total rail route length is about 63,000 km and of this 13,000 km is electrified.
  7. The major Indian ports including Calcutta, Mumbai, Chennai, Vishakhapatnam and Goa handle about 90% of sea-borne trade and are visited by cargo carriers and passenger liners from all parts of the world.
  8. A comprehensive network of air routes connects the major cities and towns of the country.
  9. The domestic air services are being looked after by Indian Airlines and private airlines.
  10. The international airport service is looked after by Air India.

PART – D

Answer the following questions in about a page.

Question 1.
Explain the weakness of the Indian Economy?
Answer:
1. Large Population:

  • India stands second in terms of size of the population next to China and our country is likely to overtake China in near future.
  • The population growth rate of India is very high and this is always a hurdle to the growth rate.

2. Inequality and poverty:

  • There exists a huge economic disparity in the Indian economy.
  • The proportion of income and assets owned by top 10% of Indians goes on increasing.
  • Increase in the poverty level in society and still a higher percentage of individuals are living Below Poverty Line [BPL].
  • Asa result of unequal distribution of the rich becomes richer and poor becomes poorer.

3. Increasing Prices of Essential Goods:

  • Even though there has been a constant growth in the GDP and growth opportunities in the Indian economy, there have been steady increase in the prices of essential goods.
  • The continuous rise in prices erodes the purchasing power and adversely affects the poor people, whose income is not protected.

4. Weak Infrastructure:

  • A gradual improvement in the infrastructural development.
  • There is still a scarcity of the basic infrastructure like power, transport, storage etc.

5. Inadequate Employment generation:

  • Growing youth population, there is a huge need of employment opportunities.
  • The growth in production is not accompanied by creation of job.
  • The Indian economy is characterized by “ Jobless growth”.

6. Outdated technology:

  • The level of technology in agriculture and small scale Industries is still outdated and obsolete.

Samacheer Kalvi 11th Economics Guide Chapter 7 Indian Economy

Question 2.
Explain the VKRV Rao’s National Income Methodology and Industrialization?
Answer:
1. Rao’s National Income Methodology:

  • Rao’s name is remembered for his pioneering work on the enumeration of national income of India.
  • He attempted
  • To develop the national income concepts suited to India and developing countries.
  • To analyze the concepts of investment, saving and multipliers is an underdeveloped economy.
  • To study the compatibility of the national incomes of Industrialized and underdeveloped countries.
  • Rao’s paper on “Full Employment and Economic Development” was one of the earliest contributions in the field of development towards employment.

2. Rao’s views on Industrialization:

  • Rao gave the following reasons for low per Capita income and low levels of per capita nutrition in India.
  • Uneconomic holdings with sub-divisions and fragmentation.
  • Low levels of water availability for crops.
  • Excess population pressure on agriculture due to the absence of a large industrial sector.
  • Absence of capital.
  • Absence of autonomy in currency policy, and in general in monetary matters encouraging holding of gold.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Students can download 11th Economics Chapter 6 Distribution Analysis Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 6 Distribution Analysis

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

PART – A

Multiple Choice Questions:

Question 1.
In Economics, distribution of income is among the ……………………….
(a) Factors of production
(b) Individual
(c) Firms
(d) Traders
Answer:
(a) Factors of production

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 2.
Theory of distribution is popularly known as
(a) Theory of product-pricing
(b) Theory of factor-pricing
(c) Theory of wages
(d) Theory of Interest
Answer:
(b) Theory of factor-pricing

Question 3.
Rent is the reward for the use of ………………………..
(a) Capital
(b) Labour
(c) Land
(d) Organization
Answer:
(c) Land

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 4.
The concept of ‘Quasi-Rent’ is associated with
(a) Ricardo
(b) Keynes
(c) Walker
(d) Marshall
Answer:
(d) Marshall

Question 5.
The Classical Theory or Rent was propounded by ………………………..
(a) Ricardo
(b) Keynes
(c) Marshall
(d) Walker
Answer:
(a) Ricardo

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 6.
‘Original and indestructible powers of the soil’ is the term used by
(a) J.S.Mill
(b) Walker
(c) Clark
(d) Ricardo
Answer:
(d) Ricardo

Question 7.
The reward for labour is ………………………
(a) Rent
(b) Wage
(c) Profit
(d) Interest
Answer:
(b) Wage

Question 8.
Money wages are also known as
(a) real wages
(b) nominal wages
(c) original wages
(d) transfer wages
Answer:
(b) nominal wages

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 9.
Residual Claimant Theory is propounded by ………………………..
(a) Keynes
(b) Walker
(c) Hawley
(d) Knight
Answer:
(b) Walker

Question 10.
The reward given for the use of capital
(a) rent
(b) wage
(c) interest
(d) profit
Answer:
(c) interest

Question 11.
Keynesian Theory of interest is popularly known as ………………………
(a) Abstinence Theory
(b) Liquidity Preference Theory
(c) Loanable Funds Theory
(d) Agio Theory
Answer:
(b) Liquidity Preference Theory

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 12.
According to the Loanable Funds Theory, supply of loanable funds is equal to
(a) S + BC + DH + DI
(b) I + DS + DH + BM
(c) S + DS + BM + DI
(d) S + BM + DH + DS
Answer:
(a) S + BC + DH + DI

Question 13.
The concept of meeting unexpected expenditure according to Keynes is …………………………
(a) Transaction motive
(b) Precautionary motive
(c) Speculative motive
(d) Personal motive
Answer:
(b) Precautionary motive

Question 14.
The distribution of income or wealth of a country among the individuals are
(a) functional distribution
(b) personal distribution
(c) goods distribution
(d) services distribution
Answer:
(b) personal distribution

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 15.
Profit is the reward for ………………………..
(a) Land
(b) Organization
(c) Capital
(d) Labour
Answer:
(b) Organization

Question 16.
Innovation Theory of profit was given by
(a) Hawley
(b) Schumpeter
(c) Keynes
(d) Knight
Answer:
(b) Schumpeter

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 17.
Quasi – rent arises in ………………………..
(a) Man-made appliances
(b) Homemade items
(c) Imported items
(d) None of these
Answer:
(a) Man-made appliances

Question 18.
“Wages as a sum of money are paid under contract by an employer to a worker for services rendered” -Who said this?
(a) Benham
(b) Marshall
(c) Walker
(d) J.S.Mill
Answer:
(a) Benham

Question 19.
Abstinence Theory of Interest was propounded by …………………………
(a) Alfred Marshall
(b) N.W Senior
(c) Bohm – Bawerk
(d) Knut Wicksell
Answer:
(b) N.W Senior

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 20.
Loanable Funds Theory of Interest is called as
(a) Classical Theory
(b) Modem Theory
(c) Traditional Theory
(d) Neo-Classical Theory
Answer:
(d) Neo-Classical Theory

Part – B

Answer the following questions in one or two sentences.

Question 21.
What is meant by distribution?
Answer:
Distribution means division of income among the four factors of production as rent, wage, interest and profit.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 22.
Mention the types of distribution.
Answer:

  1. Personal Distribution
  2. Functional Distribution

Question 23.
Define ‘Rent’?
Answer:
Rent is that part of payment made by a tenant to his landlords for the use of land only.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 24.
Distinguish between real and money wages?
Answer:

Money Wages

Real Wages

1. Money wages are referred to the wages paid in terms of money. Real wages are the wages paid in terms of goods and services.
2. Depend upon the standard of living workers in a country. Depend upon the purchasing power of money.

Question 25.
What do you mean by interest?
Answer:

  1. Interest is the reward paid by the borrower to the lender for the use of capital.
  2. Interest is the price paid for the use of capital in any market.
  3. Generally speaking, interest is a payment made by a borrower to the lender for the money borrowed.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 26.
What is profit?
Answer:

  1. The entrepreneur coordinates all the other three factors (land, labour and capital) of production.
  2. Entrepreneur is rewarded for his services in the form of profit.
  3. Profit is a return to the entrepreneur for the use of his entrepreneurial ability.
  4. It is the net income of the organizer.
  5. Profit is the amount left with the entrepreneur after he has payments made for all the other factors (land, labour and capital) used by him in the production process.

Question 27.
State the meaning of liquidity preference.
Answer:
Liquidity preference is the preference to have an amount of cash rather than of claims against others.

PART – C

Answer the following questions in a paragraph.

Question 28.
What are the motives of demand for money?
Answer:
Motives of Demand for Money:
According to Keynes, there are three motives for liquidity preference. They are:

1. The Transaction Motive:

  • The transaction motive relates to the desire of the people to hold cash for the current transactions.
  • The amount saved under this motive depends on the level of income.
  • Mt = f(y)

2. The Precautionary Motive:

  • The precautionary motive relates to the desire of the people to hold cash to meet unexpected or unforeseen expenditures such as sickness, accidents, fire and theft. The amount saved for this motive also depends on the level of income.
    Mp = f(y)

3. The Speculative Motive:
The speculative motive relates to the desire of the people to hold cash in order to take advantage of market movements regarding the future changes in the price of bonds and securities in the capital market. The amount saved for this motive depends on the rate of interest.
MS = f(i). There is inverse relation between liquidity preference and rate of interest.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 29.
List the kinds of wages.
Answer:
1. Nominal wages or money wages :
Nominal wages are referred to as the wages paid in terms of money.

2. Real wages :
Real wages are the wages paid in terms of goods and services. Hence, real wages are the purchasing power of money wages.

3. Piece wages :
Wages that are paid on the basis of quantum of work done.

4. Time wages :
Wages are paid on the basis of the amount of time that the worker works.

Question 30.
Distinguish between rent and quasi – rent?
Answer:

Rent

Quasi-Rent

1. Rent accrues to land. Quasi-Rent accrues to the man-made appliance.
2. The supply of land is fixed forever. The supply of man-made appliances is fixed for a short period only.
3. It enters into the price. It does not enter into price.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 31.
Briefly explain the Subsistence Theory of Wages.
Answer:

  • Subsistence theory was first explained by physiocrats and restated by Ricardo.
  • According to this theory, wage must be equal to the subsistence level of the labourer and his family.
  • If workers are paid higher wages they would be better off and will have large families. Hence, the population would increase, which results in increased supply of labourer and so wages will come down.
  • If wages are lower, there would be a reduction in population and thereby the supply of labour falls and wages increase to the subsistence level.
  • This theory holds that the wages of workers would not be above or below the subsistence level of the labourer and his family.

Question 32.
State the Dynamic Theory of Profit?
Answer:
Dynamic Theory of Profit:

  • J.B. Clark propounded this theory in 1900. To him, profit is the difference between price and cost of production of the commodity.
  • Profit is the reward for dynamic changes in society. He points out that, profit cannot arise in a static society. In static society, everything remains stationary.
  • The following changes take place in a dynamic society.
    1. The population is increasing.
    2. The volume of capital is increasing.
    3. Methods of production are improving.
    4. Forms of the industrial organization are changing.
    5. The wants of consumers are multiplying.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 33.
Describe briefly the Innovation Theory of Profit.
Answer:

  • Innovation theory was propounded by Joseph. A. Schumpeter.
  • Profit is the reward for “Innovation”. Innovation means invention put into commercial practice.
  • An innovation may consist of:
    1. Introduction of a new product.
    2. Introduction of a new method of production.
    3. Opening up of a new market.
    4. Discovery of new raw materials.
    5. Reorganization of an industry/firm.
    6. Anyone of these innovations leads to a reduction in the cost of production and thereby brings profit to an entrepreneur.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 34.
Write a note on the Risk-bearing Theory of Profit?
Answer:

  • Risk – the bearing theory was propounded by F.B.Hawley in 1907.
  • Profit is the reward for “risk-taking” in business.
  • Every business involves some risks. So risk-taking is an essential function of the entrepreneur and is the basis of profit.
  • Higher the risks, the greater are the profit.
  • Profit induces entrepreneurs to undertake risks.

PART – D

Answer the following questions on one page.

Question 35.
Explain the Marginal Productivity Theory of Distribution?
Answer:
Introduction:

  1. This theory was developed by Clark, Wicksteed and Walras. The Marginal productivity theory of distribution explains how the prices of various factors of production are determined.
  2. This theory explains how rent, wages, interest and profit are determined.
  3. This theory is also known as the “General Theory of Distribution ” or “ National Dividend Theory of Distribution”.

Assumptions:

  1. All the factors of production are homogenous.
  2. Factors of production can be substituted for each other.
  3. There is perfect competition both in the factor market and product market.
  4. There is perfect mobility of factors of production.
  5. There is full employment of factors.
  6. This theory is applicable only in the long-run.
  7. The entrepreneurs aim at profit maximization.
  8. There is no government intervention in fixing the price of a factor.
  9. There is no technological change.

Explanation of the Theory:
According to the Marginal Productivity Theory of Distribution, the.price or the reward for any factor of production is equal to the marginal productivity of that factor. Each factor is rewarded according to its marginal productivity.

Marginal Product:
The Marginal Product is also known as “ Marginal Physical Product “ [MPP]. The Marginal Product of a factor of production means the addition made to the total product by the employment of an additional unit of that factor. The Marginal Product may be expressed as MPP, VMP, and MRP.

1. Marginal Physical product [MPP]: The Marginal Physical Product of a factor is the increment in the total product obtained by the employment of an additional unit of that factor.

2. Value of a marginal product [VMP]: The Value of Marginal Product is obtained by multiplying the marginal physical product of the factor by the price of the product. Symbolically VMP = MPP × Price

3. Marginal Revenue product [MRP]: The Marginal Revenue Product of a factor is the increment in the total revenue which is obtained by the employment of an additional unit of that factor.
MRP = MPP × MR

The Marginal Productivity Theory of Distribution states that

  1. The price of a factor of production depends upon its productivity.
  2. The price of a factor is determined by and will be equal to the marginal revenue product of that factor.
  3. Under certain conditions, the price of a factor will be equal to both the average and marginal products of that factor.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 36.
Illustrate the Ricardian Theory of Rent?
Answer:

  1. The Classical Theory of Rent is called the “Ricardian Theory of Rent.”
  2. “ Rent is that portion of the produce of the earth which is paid to the landlord for the use of the original and indestructible powers of the soil” – David Ricardo

Assumptions:
Ricardian theory of rent assumes the following:

  1. Land differs in fertility.
  2. The law of diminishing returns operates in agriculture.
  3. Rent depends upon fertility and location of the land.
  4. The theory assumes perfect competition.
  5. It is based on the assumption of a long period.
  6. There is the existence of marginal land or no-rent land.
  7. The land has certain “Original and indestructible powers”.
  8. The land is used for cultivation only.
  9. Most fertile lands are cultivated first.

Statement of the Theory with Illustration:
There are three grades of land, namely A, B, and C on that island. ‘A’ being most fertile ‘B’ less fertile and ‘C’ the least fertile. They will first cultivate all the most fertile land. The yield per acre on ‘A’ grade land is 40 bags of paddy.

The same amount labour and capital employed in ‘A’ grade land. The yield per acre on ‘B’ grade land is 30 bags of paddy.
The Surplus of 10 bags [40-30] per acre appears on ‘A’ grade land. This is “ Economic Rent” land of ‘A’ grade land.

The yield per acre on ‘C’ grade land is 20 bags of paddy. This surplus of ‘A’ grade land is now raised to 20 bags [40-20] and it is the “ Economic Rent” of ‘A’ grade land.

The ‘C’ grade land, cost of production is just equal to the price of its products and therefore does not yield any rent [20-20], Hence, ‘C’ grade land is called ‘no-rent land or marginal land ’. The land which yields rent is called “intra-marginal land”.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 1

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 2

Diagrammatic Explanation:

  1. In the diagram, X-axis represents various grades of land, and Y-axis represents yield per acre [in bags],
  2. OA, AB, and BC are the ‘A’ grade ‘B’ grade and ‘C’ grade lands respectively.
  3. The ‘C’ grade land is the no rent land.”
  4. ‘A’ land ‘B’ grade lands are “intra – marginal lands”.
  5. The economic rent yielded by ‘A’ and ‘B’ grade lands is equal to the shaded area of their respective rectangles.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 37.
Elucidate the Loanable Funds Theory of Interest?
Answer:

  1. The loanable fund’s theory, also known as the “Neoclassical theory”. This theory was developed by Swedish economists like Wicksell, Bertilohlin, Viner, Gunnar Myrdal, and others.
  2. Interest is the price paid for the use of loanable funds.
  3. The rate of interest is determined by the equilibrium between the demand for and supply of loanable funds in the credit market.

Demand for loanable funds :

  1. Demand for Investment (I)
  2. Demand for Consumption (C)
  3. Demand for Hoarding (H)

Supply of loanable funds :
1. Savings (S) :
Savings may be of two types, namely.

  1. Savings planned by individuals are “ex-ante savings”. (Eg.) LIC premium
  2. Unplanned savings are called “ex-post savings”

2. Bank credit:
Commercial banks create credit and supply loanable funds to the investors.

3. Dishoarding (DH) :
Dishoarding means bringing out the hoarded money into use and thus it constitutes a source of supply of loanable funds.

4. Disinvestment (DI):
Disinvestment is the opposite of investment. It means not providing sufficient funds for the depreciation of equipment.

Explanation:
The X-axis represents the demand for and supply of loanable funds, Y-axis represents the rate of interest. The LS curve represents the total supply curve of loanable funds. The LD curve represents the total demand for loanable funds. The LD and LS curves, intersect each other at the point “E” the equilibrium point. At this point OR rate of interest and OM is the number of loanable funds.

Criticisms :

  1. Many factors have been included in this theory’. Still, there are many more factors like
    • Asymmetric information
    • Moral Hazard.
  2. It is very difficult to combine real factors with monetary factors.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 38.
Explain the Keynesian Theory of Interest?
Answer:
Keynes’ Liquidity Preference Theory of Interest or The monetary Theory of Interest

  1. Keynes propounded the Liquidity Preference Theory of Interest in his famous book,
    “ The General Theory of Employment, Interest, and Money “ in 1936.
  2. According to Keynes, interest is purely a monetary phenomenon because the rate of interest is calculated in terms of money.
  3. “Interest is the reward for parting with liquidity for a specified period of time”.

Meaning of Liquidity Preference:

  1. Liquidity preference means the preference of the people to hold wealth in the form of liquid cash rather than in other non-liquid assets like bonds, securities, bills of exchange, land, building, gold etc.
  2. “Liquidity Preference is the preference to have an amount of cash rather than of claims against others”. – Meyer.

Motives of Demand for Money:
According to Keynes, there are three motives for liquidity preferences. They are:

1. The Transaction Motive:
The transaction motive relates to the desire of the people to hold cash for the current transactions [or-day-to-day expenses] M = f(y)

2. The Precautionary Motive:

  • The precautionary motive relates to the desire of the people to hold cash to meet unexpected or unforeseen expenditures such as sickness, accidents, fire, and theft.
  • The amount saved for this motive also depends on the level of Income Mp = f(y).

3. The Speculative Motive:

  • The speculative motive relates to the desire of the people to hold cash in order to take advantage of market movements regarding the future changes in the price of bonds and securities in the capital market. M = f(i)
  • There is an inverse relation between liquidity preference and rate of interest.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 3

Samacheer Kalvi 11th Economics Distribution Analysis Additional Important Questions and Answers

Part – A

Multiple Choice Questions:

Question 1.
The theory of factor prices is popularly known as the theory of _______
(a) Distribution
(b) Exchange
(c) Wages
(d) Profit
Answer:
(a) Distribution

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 2.
Net profit is otherwise called ………………………
(a) Profit
(b) Risk profit
(c) Dynamic profit
(d) Pure profit
Answer:
(d) Pure profit

Question 3.
F.A. Walker wrote a book _______ in 1875.
(a) Political economy
(b) Social economy
(c) Principles of economics
(d) Wealth of nations
Answer:
(a) Political economy

Question 4.
Which is the gift of nature?
(a) Land
(b) Interest
(c) Profit
(d) Capital
Answer:
(a) Land

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 5.
Keynes liquidity preference theory is also called as_______
(a) Classical theory of interest
(b) Psychological theory of interest
(c) The monetary theory of interest
(d) Abstinence theory of interest
Answer:
(c) The monetary theory of interest

Question 6.
Which one is considered a homogeneous factor?
(a) Labour
(b) Land
(c) Capital
(d) All the above
Answer:
(d) All the above

Question 7.
Risk bearing theory of profit was propounded by _______
(a) J.B. Clark
(b) J.M. Keynes
(c) F.B. Hawley
(d) H.Knight
Answer:
(c) F.B. Hawley

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 8.
What is the payment for the service of labour?
(a) Wages
(b) Income
(c) Salary
(d) Profit
Answer:
(a) Wages

Question 9.
_______ is the produced means of production.
(a) Land
(b) Labour
(c) Capital
(d) Organisation
Answer:
(c) Capital

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 10.
Organization is done by the ………………………
(a) Private sector
(b) Public sector
(c) Service sector
(d) Entrepreneur
Answer:
(d) Entrepreneur

PART – B

Answer the following questions in one or two sentences.

Question 1.
Define Marginal product?
Answer:

  1. The marginal product of a factor of production means the addition made to the total product by the employment of an additional unit of that factor.
  2. The Marginal Product may be expressed as MPP, VMP, and MRP.

Question 2.
What are the other names of the marginal productivity theory of distribution?
Answer:

  1. The general theory of distribution
  2. National dividend theory of distribution

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 3.
What do you mean by the Marginal Productivity theory of distribution?
Answer:

  1. Marginal Productivity Theory of Distribution was developed by Clark, Wicksteed, and Walras.
  2. This theory explains how the prices of various factors of production are determined.
  3. This theory explains how rent, wages, interest, and profit are determined.
  4. This theory is also known as the “General Theory of Distribution” or “National Dividend Theory of Distribution”.

PART – C

Answer the following questions in a paragraph.

Question 1.
List out the Concepts of Profit?
Answer:
Concepts of Profit:

1. Gross Profit:
Gross Profit is the surplus that accrues to a firm when it subtracts its Total expenditure from its Total Revenue.
Gross Profit = Total Revenue – Total cost

2. Net profit or Pure Profit or Economic Profit or True Profit:
Net or pure or economic or true profit is the residual left with the entrepreneur after deducting from Gross profit The remuneration for the self-owned factors of production which are called implicit cost.
Net Profit = Gross Profit – implicit costs.

3. Normal Profit:
It refers to the minimum expected to return to stay in business

4. SuperNormal Profit:
Supernormal profits are over and above the normal profit.
SuperNormal Profit = Actual profit – Normal profit

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 2.
Describe briefly the equilibrium between Demand and Supply of Money?
Answer:
1. The equilibrium between liquidity preference and demand for money determines the rate of interest.
2. In the short – run, the supply of money is assumed to be constant.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 4

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 5

3. LP is the liquidity preference curve [demand curve.]

4. M2M2 shows the supply curve of money to satisfy speculative motives. Both curves intersect at point E, which is the equilibrium point. Hence, the rate of interest is 2.5. If liquidity preference increases from LP to L1P1 the supply of money remains constant, the rate of interest would increase from OI to OI1.

5. Suppose LP remains constant. If the supply of money is OM2, the interest is OI2 and if the supply of money is reduced from OM2 to OM4, the interest would increase from OI2 to OI3. If the supply of money is increased from OM2 to OM4, the interest could decrease from OI2 to OI4.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 3.
Define the kinds of interest.
Answer:
Gross interest:
Gross interest is the total interest amount received by creditors from debtors.
Gross interest = Net interest + reward for inconvenience + insurance against the risk of non-repayment + payment for service of debt management.

Net interest:
Net interest is only a part of the gross interest. It is the payment for use of capital only. (Eg.) Interest payable for government securities.

PART – D

Answer the following questions on one page.

Question 1.
Explain the classical theory of Interest?
Answer:
The classical theory of Interest:

  1. The equilibrium interest rate, according to classical theory, is determined by the intersection of demand and supply curves, Demand for money refers to investment.
  2. The supply of money is referred to as savings. S = I.

Equilibrium:

  1. The rate of interest is determined by the equilibrium between the total demand for and the total supply of loanable funds.
  2. Supply of and Demand for Loanable funds:
  3. Supply of loanable funds = Savings + Bank Credit + Dishoarding + Disinvestment = S + BC + DH + DI
  4. Demand for loanable funds = Investment + consumption + Hoarding = I + C + H

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis img 6

  • In Diagram X-axis represents the demand for and supply of loanable funds and the Y-axis represents the rate of interest.
  • The LS curve represents the total supply curve of loanable funds.
  • The summation of the Saving Curve [S], Bank credit curve [BC], Dishoarding curve [DH], and Disinvestment curve [DI],
  • The LD curve represents the total demand for loanable funds.
  • This is obtained by the summation of the demand for investment curve I, the demand curve for consumption demand or dissaving curve, and the curve for the demand for hoarding curve H.
  • The LD and LS curves, intersect each other at the point “E” the equilibrium point.
  • At this point, the OR rate of interest and OM is the number of loanable funds.

Samacheer Kalvi 11th Economics Guide Chapter 6 Distribution Analysis

Question 2.
Illustrate the uncertainty Bearing Theory of profit?
Answer:
Uncertainty theory was propounded by the American economist Frank H.Knight. Profit is the reward for “ uncertainty bearing”. He distinguishes between “insurable” and “non-insurable” risks.

Insurable Risks:

  1. Certain risks are measurable or calculable.
  2. Some of the examples of these risks are the risk of fire, theft, and natural disasters.
  3. Such risks are compensated by the Insurance companies.

Non-Insurable Risks:

  1. There are some risks which are immeasurable or incalculable.
  2. Examples of these risks are competition,, market condition, technology change, and public policy.
  3. No Insurance Company can undertake these risks.
  4. The term “risks” covers the first type of events (measurables-insurable)
  5. The term “uncertainty” covers the second type of events (unforeseeable or incalculable or not measurable or non-insurable).
  6. According to Knight, profit does not arise on account of risk-taking, because the entrepreneur can guard himself against risk by taking a suitable insurance policy.
  7. Uncertain events cannot be guarded against in that way.
  8. An entrepreneur takes himself the burden of facing an uncertain event, he secures remuneration.
  9. That remuneration is “profit”.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Students can download 11th Economics Chapter 5 Market Structure and Pricing Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 5 Market Structure and Pricing

Samacheer Kalvi 11th Economics Market Structure and Pricing Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
In which of the following is not a type of market structure Price will be very high?
(a) Perfect competition
(b) Monopoly
(c) Duopoly
(d) Oligopoly
Answer:
(b) Monopoly

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 2.
Equilibrium condition of a firm is ______
(a) MC = MR
(b) MC > MR
(c) MC < MR
(d) MR = Price
Answer:
(a) MC = MR

Question 3.
Which of the following is a feature of monopolistic competition?
(a) One seller
(b) Few sellers
(c) Product differentiation
(d) No entry
Answer:
(c) Product differentiation

Question 4.
A firm under monopoly can earn ______ in the short run.
(a) Normal profit
(b) Loss
(c) Supernormal profit
(d) More loss
Answer:
(c) Supernormal profit

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 5.
There is no excess capacity under ……………………..
(a) Monopoly
(b) Monopolistic competition
(c) Oligopoly
(d) Perfect competition
Answer:
(d) Perfect competition

Question 6.
Profit of a firm is obtained when ______
(a) TR < TC
(b) TR – MC
(c) TR >TC
(d) TR = TC
Answer:
(c) TR > TC

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 7.
Another name of the price is …………………..
(a) Average Revenue
(b) Marginal Revenue
(c) Total Revenue
(d) Average Cost
Answer:
(a) Average Revenue

Question 8.
In which type of market, AR and MR are equal ______
(a) Duopoly
(b) Perfect competition
(c) Monopolistic competition
(d) Oligopoly
Answer:
(b) Perfect competition

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 9.
In a monopoly, the MR curve lies below …………………….
(a) TR
(b) MC
(c) AR
(d) AC
Answer:
(c) AR

Question 10.
Perfect competition assumes ______
(a) Luxury goods
(b) Producer goods
(c) Differentiated goods
(d) Homogeneous goods
Answer:
(d) Homogeneous goods

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 11.
Group equilibrium is analysed in ……………………
(a) Monopolistic competition
(b) Monopoly
(c) Duopoly
(d) Pure competition
Answer:
(a) Monopolistic competition

Question 12.
In monopolistic competition, the essential feature is ______
(a) Same product
(b) selling cost
(c) Single seller
(d) Single buyer
Answer:
(b) selling cost

Question 13.
Monopolistic competition is a form of ……………………
(a) Oligopoly
(b) Duopoly
(c) Imperfect competition
(d) Monopoly
Answer:
(c) Imperfect competition

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 14.
Price leadership is the attribute of ______
(a) Perfect competition
(b) Monopoly
(c) Oligopoly
(d) Monopolistic competition
Answer:
(c) Oligopoly

Question 15.
Price discrimination will always lead to ……………………
(a) Increase in output
(b) Increase in profit
(c) Different prices
(d) (b) and (c)
Answer:
(d) (b) and (c)

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 16.
curve under monopolistic competition will be ______
(a) Perfectly inelastic
(b) Perfectly elastic
(c) Relaively elastic
(d) Unitary elastic
Answer:
(c) Relaively elastic

Question 17.
Under perfect competition, the shape of demand curve of firm is …………………
(a) Vertical
(b) Horizontal
(c) Negatively sloped
(d) Positively sloped
Answer:
(b) Horizontal

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 18.
In which market form, does absence of competition prevail?
(a) Perfect competition
(b) Monopoly
(c) Duopoly
(d) Oligopoly
Answer:
(b) Monopoly

Question 19.
Which of the following involves maximum exploitation of consumers?
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Answer:
(b) Monopoly

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 20.
An example of selling cost is ______
(a) Raw material cost
(b) Transport cost
(c) Advertisement cost
(d) Purchasing cost
Answer:
(c) Advertisement cost

Part – B

Answer the following questions in one or two sentences.

Question 21.
Define market?
Answer:
In economics, the term ‘Market’ refers to a system of exchange between the buyers and the sellers of a commodity. The exchange may be direct or indirect.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 22.
Who is the price-taker?
Answer:
A firm under perfect competition is a price-taker. Both buyer and seller accept the price fixed in the industry.

Question 23.
Point out the essential features of pure competition?
Answer:

  1. The absence of any monopoly element.
  2. There are large buyers and sellers.
  3. Homogenous product and uniform price.
  4. Free entry and exit.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 24.
What is the selling cost?
Answer:
Under monopolistic competition, as the products are differentiated, the producer has to incur expenses to make his brand popular. The expenditure involved in selling the product is called “selling cost’ Eg. Cost for advertisements.

Question 25.
Draw demand curve of a firm for the following:
Answer:
(a) Perfect competition
(b) Monopoly

(a) Perfect competition:
The average revenue of the firm is greater than its average cost.
The firm is earning supernormal profit.

Explanation:
In the figure, output is measured along the x-axis and price, revenue, and cost along the y-axis. OP is the prevailing price in the market. PL is the demand curve or average and the marginal
revenue curve. The firm is in equilibrium at point ‘E’ where MR = MC and MC cuts the MR curve from below at the point of equilibrium.
Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 1

(b) Monopoly:
A monopoly is a market structure characterized by a single seller, selling the unique product with the restriction for a new firm to enter the market. A monopoly is a form of market where there is a single seller selling a particular commodity for which there are no close substitutes.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 2

Question 26.
Mention any two types of price discrimination.
Answer:

  1. Personal: Different prices are charged for different individuals. For example, the railways give tickets at a concessional rate to the ‘Senior citizens’ for the same journey.
  2. Geographical: Different prices are charged at different places for the same product. For example, a book sold within India at a price is sold in a foreign country at a lower price.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 27.
Define “Excess capacity”?
Answer:
Excess capacity is the difference between the optimum output that can be produced and the actual output produced by the firm.

Part – C

Answer the following questions in one paragraph.

Question 28.
What are the features of a market?
Answer:

  1. Buyers and sellers of a commodity or a service.
  2. A commodity to be bought and sold.
  3. Price agreeable to buyer and seller.
  4. Direct or indirect exchange.

Question 29.
Specify the nature of entry of competitors in perfect competition and monopoly?
Answer:
Perfect competition:
Under perfect competition, there is the possibility of free entry and exit of the firm. In the short run, if an efficient producer produces supernormal profits, it attracts new firms to enter the industry. When a large number of firms enter, the supply would increase, resulting in lower prices. An inefficient producer, disturbed by the loss, quit the market. It results in a decrease in supply so the price will go up.

Monopoly:
In a monopoly, there is a strict barrier for entry of any new firm.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 30.
Describe the degrees of price discrimination.
Answer:
Price discrimination has become widespread in almost all monopoly markets. According to A.C. Pigou, there are three degrees of price discrimination.

1. First-degree price discrimination :
A monopolist charges the maximum price that a buyer is willing to pay. This is called perfect price discrimination. Joan Robinson named it as “Perfect discriminating monopoly.”

2. Second-degree price discrimination :
Under this degree, buyers are charged prices in such a way that a part of their consumer’s surplus is taken away by the sellers. This is called imperfect price discrimination. Joan Robinson named it as “Imperfect discriminating monopoly”. Under this degree, buyers are divided into different groups and a different price is charged for each group. (E.g) Ticket prices in cinema theatres.

3. Third-degree price discrimination :
The monopolist splits the entire market into a few sub-market and charges different prices in each submarket. The groups are divided on the basis of age, sex, and location. (E.g) Railways charge lower fares from senior citizens.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 31.
State the meaning of selling cost with an example?
Answer:
Under monopolistic competition as the products are differentiated, the producer has to incur expenses to make his brand popular. The expenditure involved in selling the product is called “selling cost”.

According to Prof.Chamberlin, selling cost is the cost incurred in order to alter the position or shape of the demand curve for a product.
Under perfect competition and monopoly there is soiling COM.
(Eg.) Advertisements, Free services, Home delivery etc.,

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 32.
Mention the similarities between perfect competition and monopolistic competition?
Answer:

Perfect Competition

Monopolistic Competition

1. Large number of buyers and sellers. Large number of buyers and many sellers.
2. Homogeneous product & uniform price. Close substitute commodity.
3. Free Entry and exit. Free Entry and exit.
4. Very small size of market for each firm. Small size of market.
5. It has no monopoly power Limited power
6. Uniform power (or) low price Moderate power
7. Price policy price taker Low control elasticity of demand
8. Price elasticity – infinite Some control over price depending on consumers brand loyalty.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 33.
Differentiate between “firm” and Industry?
Answer:

Firm

Industry

1. A firm refers to a single production unit in the industry, producing a large or a small quantum of a commodity or service, and selling it at a price in the market. The industry refers to a group of firms producing the same product or service in an economy.
2. Its main objective is to earn a profit. There may be other objectives as described by managerial and behavioral theories of the firm. For example, A group of firms producing cement is called a cement industry.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 34.
State the features of duopoly?
Answer:

  1. Each seller is fully aware of his rival’s motive and actions.
  2. Both sellers may collude (they agree on all matters regarding the sale of a commodity)
  3. They may enter into cut-throat competition.
  4. There is no product differentiation.
  5. They fix the price for their product with a view to maximizing their profit.

Part – D

Answer the following questions in about a page.

Question 35.
Bring out the features of perfect competition?
Answer:
According to Joan Robinson, “Perfect competition prevails when the demand for the output of each producer is perfectly elastic. It is an ideal but imaginary market. 100% of perfect competition cannot be seen.
Features of the perfect competition :

(a) a Large number of buyers and sellers :
Each individual buyer buys a very very small quantum of a product as compared to that found in the market. This means that he has no power to fix the price of the product. He is only a price-taker and not a price-maker. As the number of sellers is large the seller is also a price-taker.

(b) Homogenous product and uniform price :
The. products are homogenous in nature and are perfectly substitutable. All the units of the product are identical. Therefore a uniform price prevails in the market.

(c) Free entry and exit:
In the short run, if the very efficient producer earns supernormal profits, new firms enter the industry. When a large number of firms enter, the supply would increase, resulting in lower prices. If a inefficient producer incurs a loss, the loss incurring firms quit the market. So the existing firms could earn more profit as supply decreases.

(d) Absence of transport cost:
The prevalence of the uniform price is also due to the absence of the transport cost. . e) Perfect mobility of factors of production :
As there is perfect mobility of the factors of production, uniform price exists. As they enjoy perfect freedom of mobility the price gets adjusted.

(f) Perfect knowledge of the market:
All buyers and sellers have a thorough knowledge of the quality of the product, prevailing price, etc.

(g) No government intervention:
There is no government regulation on the supply of raw materials and in the determination of price etc.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 36.
How price and output are determined under the perfect competition?
Answer:
Perfect Competition: Firm’s Equilibrium in the Short Run

  1. In the short run, at least a few factors of production are fixed. The firms under Perfect Competition take the price (10) from the industry and start adjusting their quantities produced. For example Qd = 100 – 5P and Qs = 5P.
  2.  At equilibrium Qd = Qs
  3. Therefore 100 – 5P = 5P

100 = 10P; 100/10 = P; Qd = demand
P = 10 ; P = Price
Qd = 100 – 5(10); Qs = Supply
100 – 50 = 50
Qs = 5 (10) = 50
Therefore 50 = 50
Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 3

This diagram consists of three panels. The equilibrium of an industry is explained in the first panel. The demand and supply forces of all the firms interact and the price is fixed as 10. The equilibrium of an industry is obtained at 50 units of output.

In the second part of the diagram, AC curve is lower than the price line. The equilibrium condition is achieved where MC = MR. Its equilibrium quantity sold is 50. With the prevailing price, ₹10 it experiences supernormal profit. AC = ₹8, AR = ₹10.

Its total revenue is 50 × 10 = 500. Its total cost is 50 × 8 = 400.
Therefore, its total profit is 500 – 400 = 100.

In the third part of the diagram, the firm’s cost curve is above the price line. The equilibrium condition is achieved at the point where MR = MC. Its quantity sold is 50. With the prevailing price, it experiences loss. (AC > AR)

Its total revenue is 50 × 10 = 500. Its total cost is 50 × 12 = 600.
Therefore, its total loss is 600 – 500 = 100.

As profit prevails in the market, new firms will enter the industry, thus increasing the supply of the product. This means a decline in the price of the product and an increase in the cost of production. Thus, the abnormal profit will be wiped out; the loss will be incurred.

When loss prevails in the market, the existing loss-making firms will exit the industry, thus decreasing the supply of the product. This means a rise in the price of the product and a reduction in the cost of production. So the loss will vanish; Profit will emerge. Consequent to the entry and exit of new firms into the industry, firms always earn ‘normal profit’ in the long run as shown in the diagram.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 37.
Describe the features of oligopoly?
Answer:
Features of oligopoly:
1. Few large firms :
Very few big firms own the major control of the whole market by producing a major portion of the market demand.

2. Interdependence among firms :
The price and quality decisions of a particular firm are dependent on the price and quality decisions of the rival firms.

3. Group behaviour :
The firms under oligopoly realise the importance of mutual co-operation.

4. Advertisement cost :
The oligopolist could raise sales either by advertising or improving the quality of the product.

5. Nature of the product:
Perfect oligopoly means homogeneous products and imperfect oligopoly deals with heterogeneous products.

6. Price rigidity :
It implies that prices are difficult to be changed. The oligopolist firms do not change their prices due to the fear of rival’s reaction.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 38.
Illustrate price and output determination under Monopoly?
Answer:
Price and Output Determination under Monopoly:
A monopoly is a one firm-industry. Therefore, a firm under a monopoly faces a downward-sloping demand curve (or AR curve). Since, under monopoly AR falls, as more units of output are sold, the MR lies below the AR curve (MR < AR). The monopolist will continue to sell his product as long as his MR > MC.

He attains equilibrium at the level of output when its MC is equal to MR. Beyond this point, the producer will experience loss and hence will stop selling. Let us take the following hypothetical example of Total Revenue Function and Total cost function.
Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 4
TR = 100Q – 4Q2 and
TC = Q3 – 18Q2 + 91Q + 12.
Therefore AR = 100 – 4Q;
MR = 100 – 8Q;
AC = Q2 – 18Q + 91 + 12/Q;
= 3Q2 – 36Q + 91;
When Q = 3,
AR = 100 – 4(3) = 88,
= (3)2 – 18(3) + 91 + 12/3 = 9 – 54 + 91 + 4 = 50;
MR = 100 – 8(3) = 76;
= 3(3)2 – 36(3) + 91 = 27 – 108 + 91 = 10
From this diagram, till he sells 3 units output, MR is greater than MC, and when he exceeds this output level, MR is less than MC. The monopoly firm will be in equilibrium at the level of output where MR is equal to MC. The price is 88.

To checkup how much profit the monopolist is making at the equilibrium output, the average revenue curves and the average cost curves are used. At the equilibrium level of output is 3; the average revenue is 88 and the average cost is 50. Therefore (88 – 50 =38) is the profit per unit.
Total profit = (Average. Revenue – Average Cost) × Total output = (88 – 50) × 3 = 38 × 3 = 114.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 39.
Explain price and output determined under monopolistic competition with help of the diagram?
Answer:
Price and Output Determination under Monopolistic competition:
The firm under monopolistic competition achieves its equilibrium when it’s MC = MR, and when its MC curve cuts its MR curve from below. If MC is less than MR, the sellers will find it profitable to expand their output.

Under Monopolistic Competition:

  1. The demand curve is downwards sloping.
  2. There are close substitutes.
  3. The demand curve is fairly elastic.

Under monopolistic competition, different firms produce different varieties of the product and sell them at different prices. Each firm under monopolistic competition seeks to achieve equilibrium as regards.

  1. Price and output
  2. Product adjustment
  3. Selling cost adjustment.

Short-run equilibrium:
The profit maximisation is achieved when MC = MR.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 4

‘OM’ is the equilibrium output. ‘OP’ is the equilibrium price. The total revenue is ‘OMQP’. And the total cost is ‘OMRS’. Therefore, total profit is ‘PQRS’. This is super normal profit under short-run.

But under differing revenue and cost conditions, the monopolistically competitive firms may incur a loss.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 5

As shown in the diagram, the AR and MR curves are fairly elastic. The equilibrium situation occurs at point ‘E’, where MC = MR and MC cuts MR from below.

The equilibrium output is OM and the equilibrium price is OP. The total revenue of the firm is ‘OMQP’ and the total cost of the firm is ‘OMLK’ and thus the total loss is ‘PQLK’. This firm incurs a loss in the short run.

Long-Run Equilibrium of the Firm and the Group Equilibrium:
In the short run, a firm under monopolistic competition may earn a supernormal profit or incur loss. But in the long run, the entry of the new firms in the industry will wipe out the supernormal profit earned by the existing firms. The entry of new firms and the exit of loss-making firms will result in normal profit for the firms in the industry.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 6

In the long run, AR curve is more elastic or flatter because plenty of substitutes are available. Hence, the firms will earn an only normal profit.

Samacheer Kalvi 11th Economics Market Structure and Pricing Additional Important Questions and Answers

Part – A

Multiple Choice Questions:

Question 1.
The supply curve in the very short period is _______
(a) Horizontal
(b) Vertical
(c) Slopes downward
(d) Slopes upward
Answer:
(b) Vertical

Question 2.
Who was propounded by the concept of imperfect competition?
(a) Philip Kotler
(b) Joan Robinson
(c) (a) and (b)
(d) None of these
Answer:
(b) Joan Robinson

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 3.
Second condition for equilibrium of the firm _______
(a) MC curve should cut MR curve from below
(b) MC curve should cut MR curve from above
(c) MC curve coincides with MR curve
(d) None of the above
Answer:
(a) MC curve should cut MR curve from below

Question 4.
Price discrimination is called ………………………. monopoly.
(a) Increasing
(b) Decreasing
(c) Equalization
(d) Discriminating
Answer:
(d) Discriminating

Question 5.
In which type of market the seller is a price taker?
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Duopoly
Answer:
(a) Perfect competition

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 6.
The perfect competitive firms are ……………………..
(a) Price maker
(b) Price in charge
(c) Price given
(d) Price taker
Answer:
(d) Price taker

Question 7.
There is a barrier for entry of new firm in _______
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Duopoly
Answer:
(a) Monopoly

Question 8.
The most important form of selling cost is ………………………..
(a) Advertisement
(b) Sales
(c) Homogeneous product
(d) None
Answer:
(a) Advertisement

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 9.
Supply curve in long run _______
(a) Perfectly elastic
(b) Perfectly inelastic
(c) Less elastic
(d) None
Answer:
(a) Perfectly elastic

Question 10.
_______ classified market based on time.
(a) Marshall
(b) Adamsmith
(c) Chamberlin
(d) Hicks
Answer:
(a) Marshall

Part – B

Answer the following questions in one or two sentences.

Question 1.
Define Dumping?
Answer:

  1. Dumping refers to the practice of the monopolist charging a higher prices for his product in the local market and lower price in the foreign market.
  2. Through dumping, a country expands its command over other countries for its product. This is also called as “ International Price Discrimination”. For example, India’s electronic market is flooded with China’s products.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 2.
Classify market-based on the area?
Answer:

  1. Local market
  2. Provincial market
  3. National market
  4. International market

Question 3.
What is the classification of markets?
Answer:
Markets are classified
1. On the Basis of Area

  • Local market
  • Provincial market
  • National market
  • International market

2. On the Basis of Time:

  • Very short period market (or) Market period
  • Short period market
  • Long-period market
  • Very long period market (or) A secular period market

3. On the Basis of Quality of the Commodity:

  • Wholesale market
  • Retail market

4. On the Basis of Competition:

  • Perfect competition market
  • Imperfect competition market

Part – C

Answer the following questions in one paragraph.

Question 1.
State the sources of monopoly power?
Answer:
1. Natural Monopoly:
Ownership of the natural raw materials [E.g. Gold mines – Africa, Coal mines, Nickel – Canada, etc]

2. State Monopoly:
Single supplier of some special services [E.g – Railways in India], (ill) Legal Monopoly: A Monopoly firm can get its monopoly power by getting patent rights, a trademark from the government.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 2.
Explain Long-Run Equilibrium of the Firm and the Group Equilibrium?
Answer:
In the short run, a firm under monopolistic competition may earn a supernormal profit or incur a loss. But in the long run, the entry of the new firms in the industry will wipe out the supernormal profit earned by the existing firms. The entry of new firms and the exit of loss-making firms will result in normal profit for the firms in the industry. In the long run, the AR curve is more elastic or flatter because plenty of substitutes are available. Hence, the firms will earn an only normal profit.

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing img 7

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 3.
Classify markets based on time.
Answer:
Alfred Marshall classified the market on the basis of time.
1. Very short period or Market period :
If occurs when with the available time the quantum supplied of a product cannot be changed. The supply curve is vertical; it is inelastic. Demand plays a major role in price determination. (Eg.) During floods the price of food products raises.

2. Short period market:
Here the quantum supplied of a product can be changed to some extent. Supply curve is little more elastic to meet an increased demand.

3. Long-period market:
Here the quantum supplied of a product can be changed to a larger extent. The supply curve is very much elastic. All the factors are variable and the price of the product is moderate.

4. Very long period market (or a secular period market) :
It occurs when the entire economy undergoes a drastic change. Newer technologies are introduced and most modem products are produced.
(Eg.) The entry of pen-drive has driven out compact disc (CD)

Part – D

Answer the following questions in about a page.

Question 1.
Explain the wastes of monopolistic competition.
Answer:
1. Idle capacity :
Unutilized capacity is the difference between the optimum output and the actual output. In the long run, a monopolistic firm produces the output corresponding to the minimum average cost, which is less than the optimum output. It creates artificial scarcity. This leads to excess capacity which is actually a waste in monopolistic competition.

2. Unemployment:
As the firm produce less than optimum output, the productive capacity is not used to the fullest extent. This will lead to unemployment of human resources also.

3. Advertisement:
There is a lot of waste in competitive advertisements which leads to high cost to the consumers. It is also claimed that advertisements cheat consumers by giving false information about the product.

4. Too many varieties of goods :
Introducing too many varieties of a good is another waste here. The goods differ in size, shape, style and colour. A reasonable number of varieties would be sufficient. Cost per unit can also be reduced if only a few varieties are produced in larger quantity instead of larger varieties with small quantities.

5. Inefficient firms :
Inefficient firms charge prices higher than their marginal cost. These firms can be kept out of the industry. But the buyer’s preference for such products are large they continue to exist. Efficient firms cannot drive out the inefficient firms because the efficient firms cannot spend for an advertisement to attract buyers. In reality, consumers are mostly emotional rather than rational.

ACTIVITY

Question 1.
Divide the class into five groups. Assign each group a market structure; for first group perfect competition, second group monopoly, third group oligopoly, fourth group Duopoly and for fifth group monopolistic competition. Now each student is to identify a business or organization or seller that orperate in that market structure. Ask each student to prepare a brief description of the following?
Answer:

  1. Name of the market structure
  2. Business name
  3. Industry
  4. Identify the conditions of market structure
  5. What are prices of a particular product, whether same price or different price?.
  6. Is there non-price competition?

Activity to be done by the students in the classroom under the guidance of the teacher. (Group Activity)

Samacheer Kalvi 11th Economics Guide Chapter 5 Market Structure and Pricing

Question 2.
Find out the number of firms in Tamil Nadu or India which are producing/selling TV and Mobile phones?
Answer:
Producing / selling of Television firms:

  1. Samsung
  2. L.G
  3. Croma
  4. Panasonic
  5. Philips
  6. Sharp
  7. Mitsubishi
  8. Sony
  9. Red mi
  10. Apple TV
  11. Akai

Producing / Selling / of Mobile Phones Firms:

  1. Samsung
  2. Apple
  3. Red mi
  4. Oppo
  5. Gionee
  6. Infocus
  7. Nokia
  8. L.G
  9. Mi
  10. Lave
  11. Micro max
  12. Black bei
  13. Moto
  14. Letv

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Students can download 11th Economics Chapter 4 Cost and Revenue Analysis Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 4 Cost and Revenue Analysis

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

Part – A

Multiple Choice Questions:

Question 1.
Cost refers to ……………………..
(a) Price
(b) Value
(c) Fixed cost
(d) Cost of production
Answer:
(d) Cost of production

Question 2.
Cost functions are also known _______ function.
(a) production
(b) investment
(c) demand
(d) consumption
Answer:
(a) production

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 3.
Money cost is also known as …………………….. cost.
(a) Explicit
(b) Implicit
(c) Social
(d) Real
Answer:
(a) Explicit

Question 4.
Explicit cost plus implicit cost denote _______ cost.
(a) social
(b) economic
(c) money
(d) fixed
Answer:
(b) economic

Question 5.
Explicit costs are termed as ………………………
(a) Out of pocket expenses
(b) Real cost
(c) Social cost
(d) Sunk cost
Answer:
(a) Out of pocket expenses

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 6.
The costs of self-owned resources are termed as _______ cost.
(a) real
(b) explicit
(c) money
(d) implicit
Answer:
(d) implicit

Question 7.
The cost that remains constant at all levels of output is ………………….. cost.
(a) Fixed
(b) Variable
(c) Real
(d) Social
Answer:
(a) Fixed

Question 8.
Identify the formula of estimating average variable _______ cost.
(a) TC/Q
(b) TVC/Q
(c) TFC/Q
(d) TAC/Q
Answer:
(b) TVC/Q

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 9.
The cost incurred by producing one more unit of output is ……………… cost.
(a) Variable
(b) Fixed
(c) Marginal
(d) Total
Answer:
(c) Marginal

Question 10.
The cost that varies with the level of output is termed as _______ cost.
(a) money
(b) variable cost
(c) total cost
(d) fixed cost
Answer:
(b) variable cost

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 11.
Wage is an example of………………….. cost of the production.
(a) Fixed
(b) Variable
(c) Marginal
(d) Opportunity
Answer:
(b) Variable

Question 12.
The cost per unit of output is denoted by _______ cost.
(a) average
(b) marginal
(c) variable
(d) total
Answer:
(a) average

Question 13.
Identify the formula for estimating average cost.
(a) AVC/Q
(b) TC/Q
(c) TVC/Q
(d) AFC/Q
Answer:
(b) TC/Q

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 14.
Find total cost where TFC = 100 and TVC = 125.
(a) 125
(b) 175
(c) 225
(d) 325
Answer:
(c) 225

Question 15.
Long-run average cost curve is also called a………………….. curve.
(a) Demand
(b) Planning
(c) Production
(d) Sales
Answer:
(b) Planning

Question 16.
Revenue received from the sale of products is known as _______ revenue.
(a) profit
(b) total revenue
(c) average
(d) marginal
Answer:
(b) total revenue

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 17.
Revenue received from the sale of an additional unit is termed as ……………………. revenue.
(a) Profit
(b) Average
(c) Marginal
(d) Total
Answer:
(c) Marginal

Question 18.
Marginal revenue is the addition made to the
(a) total sales
(b) total revenue
(c) total production
(d) total cost
Answer:
(b) total revenue

Question 19.
When price remains constant, AR will be …………………… MR.
(a) Equal to
(b) Greater than
(c) Less than
(d) Not related to
Answer:
(a) Equal to

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 20.
A bookseller sold 40 books with a price of Rs.10 each. The total revenue of the seller is Rs. _______
(a) 100
(b) 200
(c) 300
(d) 400
Answer:
(d) 400

Part – B

Answer the following questions in one or two sentences.

Question 21.
Define cost?
Answer:
Cost refers to the total expenses incurred in the production of a commodity.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 22.
Define cost function.
Answer:
The functional relationship between cost and output is expressed as ‘Cost function’.
C= f (Q).

Question 23.
What do you mean by fixed cost?
Answer:
Fixed cost does not change with the change in the quantity of output. The expenses on fixed factors remain unchanged irrespective of the level of output and these expenses are called fixed costs.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 24.
Define Revenue.
Answer:
The amount of money that a producer receives in exchange for the sale of goods is known as revenue. Revenue means sales revenue.

Question 25.
Explicit Cost – Define?
Answer:
Explicit cost refers to the actual expenditures of the firm to purchase or hire the inputs.

Question 26.
Give the definition for ‘Real Cost’.
Answer:
Adam Smith regarded pains and sacrifices of labour as real costs of production.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 27.
What is meant by Sunk Cost?
Answer:
A cost incurred in the past and cannot be recovered in the future is called a sunk cost.

Part – C

Answer the following questions in one paragraph.

Question 28.
Distinguish between Fixed Cost and Variable Cost?
Answer:

Fixed Cost

Variable Cost

1. Fixed cost does not change with the change in the quantity of output. The variable cost varies with the level of output.
2. Fixed cost is also called “Supplementary Cost” or “overhead cost”. Variable cost is also called “ Prime cost”, “Special cost” or Direct cost.
3. For example Watchman’s wages, Permanent worker’s Salary, machines Insurance Premium deposit for a power Licence fee, etc. For example Temporary workers, cost of raw materials, fuel cost, electricity charges, etc.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 29.
State the difference between money cost and real cost?
Answer:

Money cost

Real cost

1. Production cost expressed in money terms is called as money cost. Real cost refers to the payment made to compensate the efforts and sacrifices of all factor owners for their services in production.
2. Money cost includes the expenditures such as cost of raw materials, payment of wages and- salaries, payment of rent, interest on capital, expenses on fuel and power, expenses on transportation, and other types of production-related costs. Real cost includes the efforts and sacrifices of landlords in the use of land, capitalists to save and invest, and workers, in foregoing leisure.
3. Money costs are considered as out of pocket expenses. Real costs are considered pains and sacrifices of labour as the real costs of production.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 30.
Distinguish between Explicit Cost and Implicit Cost?
Answer:

Explicit Cost

Implicit Cost

1. Payment made to others for the purchase of factors of production is known as Explicit Costs. Payment made to the use of resources that the firm already owns is known as Implicit Cost.
2. It refers to the actual expenditures of the firm to purchase or hire the inputs the firm needs. Implicit Cost refers to the imputed cost of a firm’s self-owned and self-employed resources.
3. Explicit cost includes wages, payment for raw material, rent for the building, interest for capital invested, expenditure on transport and advertisement, other expenses like license fee, depreciation, and insurance charges. A firm or producer may use his own land, building, machinery, car, and other factors in the process of production.

Question 31.
Define opportunity cost and provide an example.
Answer:

  1. Opportunity cost refers to the cost of the next best alternative use. In other words, it is the value of the next best alternative foregone.
  2. For example, a farmer can cultivate both paddy and sugarcane in farmland.
  3. If he cultivates paddy, the opportunity cost of paddy output is the amount of sugarcane output given up.
  4. Opportunity Cost is also called “Alternative Cost” or Transfer cost.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 32.
State the relationship between AC and MC?
Answer:
There is a unique relationship between the AC and MC curves as shown in the diagram.
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 1

  1. When AC is falling, MC lies below AC.
  2. When AC becomes constant, MC also becomes equal to it.
  3. When AC starts increasing, MC lies above the AC.
  4. MC curve always cuts AC at its minimum point from below.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 33.
Write a short note on Marginal Revenue.
Answer:

  1. Marginal Revenue [MR] is the addition to the total revenue by the sale of an additional unit of a commodity.
  2. MR can be found out by dividing change in total revenue by the change in quantity sold out.
  3. MR = ∆TR/∆Q where MR denotes Marginal Revenue, ∆TR denotes a change in Total Revenue and ∆Q denotes a change in total quantity.
  4. The other method of estimating MR is:

MR = TRn – TRn-1, (or) TRn+1 – TRn
Where MR denotes Marginal Revenue,
TRn denotes total revenue of nth item,
TRn-1 denotes Total Revenue of n – 1th item and
TRn+1 denotes Total Revenue of n + 1th item.
If TR = PQ,
MR = dTR/dQ = P, which is equal to AR.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 34.
Discuss the Long run cost curves with a suitable diagram?
Answer:

  1. In the long run, all factors of production become variable. The existing size of the firm can be increased in the case of the long run. There are neither fixed inputs nor fixed costs in the long run.
  2. LAC is given in the diagram.
  3. Long-run average cost (LAC) is equal to long-run total costs divided by the level of output.

LAC = LTC/Q where LAC denotes Long-Run Average Cost, LTC denotes Long-run Total Cost and Q denotes the quantity of output.
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 2

The LAC curve is derived from short-run average cost curves. It is the locus of points denoting the least cost curve of producing the corresponding output. The LAC curve is called a ‘Plant Curve’ or ‘Boat shape Curve’ or ‘Planning Curve’ or ‘Envelop Curve’.

Part – D

Answer the following questions in about a page.

Question 35.
If total cost = 10 + Q3, find out AC, AVC, TFC, AFC when Q = 5?
Answer:
TC = 10 + Q3
AC = \(\frac { TC }{ Q } \)
AC = \(\frac{10+Q^{3}}{Q}\)
If Q=5, Q = 5 × 5 × 5 = 125
AC = \(\frac { 10 + 125 }{ 5 } \) = \(\frac { 135 }{ 5 } \) = 27

AVC:
TC = 10 + Q3
TC = TFC + TVC
TVC = Q3
AVC = \(\frac { TVC }{ Q } \)
= \(\frac{Q^{3}}{Q} = Q\)2
If Q = 5, then AVC = 52
AVC = 25

TFC:
TC = 10 + Q3
TC = TFC + TVC
TFC = 10

AFC:
AFC = \(\frac { TFC }{ Q } \)
= \(\frac { 10 }{ 5 } \)
AFC = 2

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 36.
Discuss the short-run cost curves with a suitable diagram?
Short-run Cost Curves:
Total Fixed Cost (TFC):
All payments for the fixed factors of production are known as Total Fixed Cost. A hypothetical TFC is shown in the below table and the diagram.
Answer:
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 3
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 4

For instance if TC = Q3 – 18Q2 + 91Q + 12. the fixed cost here is 12. That means, if Q is zero, the total cost will be 12, hence fixed cost.
It could be observed that TFC does not change with output. Even when the output is zero, the fixed cost is ₹1000. TFC is a horizontal straight line, parallel to X-axis.

Total Variable Cost (TVC):
All payments to the variable factors of production are called Total Variable Cost. Hypothetical TVC is shown in the below table and diagram.
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 5
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 6

In the diagram, the TVC is zero when nothing is produced. As output increases, TVC also increases. TVC curve slopes upward from left to right.

For instance in TC = Q3 – 18 Q2 + 91Q + 12, variable cost, TVC = Q3 – 18Q2 + 91Q

Total Cost Curves:
Total Cost means the sum total of all payments made in the production. It is also called as Total Cost of Production. Total cost is the summation of Total Fixed Cost (TFC) and Total Variable Cost (TVC). It is written symbolically as TC = TFC + TVC.

For example, when the total fixed cost is ₹1000 and the total variable cost is ₹200 then the Total cost is = ₹1200 (₹1000 + ₹200).
If TFC = 12 and
TVC = Q3 – 18Q2 + 91Q
TC = 12 + Q3 – 18Q2 + 91Q

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 7
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 8

Average Fixed Cost (AFC):
Average Fixed Cost refers to the fixed cost per unit of output. It is obtained by dividing the total fixed cost by the quantity of output. AFC = TFC / Q where AFC denotes average fixed cost, TFC denotes total fixed cost and Q denotes the quantity of output. For example, if TFC is 1000 and the quantity of output is 10, the AFC is ₹100, obtained by dividing ₹1000 by 10. TVC is shown in the below table and diagram?

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 9
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 10

It is to be noted that-

  1. AFC declines as output increases, as fixed cost remains constant.
  2. AFC curve is downward sloping throughout its length, never touching the X and Y-axis. It is asymptotic to both axes.
  3. The shape of the AFC curve is a rectangular hyperbola.

Average Variable Cost (AVC):
Average Variable Cost refers to the total variable cost per unit of output. It is obtained by dividing total variable cost (TVC) by the quantity of output (Q). AVC = TVC / Q where, AVC denotes Average Variable cost, TVC denotes total variable cost and Q denotes the quantity of output. For example, When the TVC is ₹300 and the quantity produced is 2, the AVC is ₹150,
(AVC = 300/2 = 150) AVC is shown in the below table and diagram.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 11

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 12

Average Total Cost (ATC) or Average Cost (AC):
Average Total Cost refers to the total cost per unit of output.

It can be obtained in two ways.

1. By dividing the firm’s total cost (TC) by the quantity of output (Q). ATC = TC / Q.
For example, if TC is ₹1600 and the quantity of output is Q = 4, the Average Total Cost is ₹400. (ATC = 1600/4 = 400)
If ATC is Q3 – 18Q2 + 91Q + 12, then AC = Q2 – 18Q + 91 + 12/Q

2. By ATC is derived by adding together Average Fixed Cost (AFC) and Average Variable Cost (AVC) at each level of output. ATC = AFC + AVC.
For example, when Q = 2, TFC = 1000, TVC = 300; AFC = 500; AVC = 150; ATC = 650. ATC or AC is shown in the below table and diagram.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 13Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 14

Marginal Cost (MC):
Marginal Cost is the cost of the last single unit produced. It is defined as the change in total costs resulting from producing one extra unit of output. In other words, it is the addition made to the total cost by producing one extra unit of output.

Marginal cost is important for deciding whether any additional output can be produced or not. MC = ∆TC/∆Q where MC denotes Marginal Cost, ∆TC denotes a change in total cost and ∆Q denotes a change in total quantity.

For example, a firm produces 4 units of output and the Total cost is ₹1600. When the firm produces one more unit (4 + 1 = 5 units) of output at the total cost of ₹1900, the marginal cost is ₹300.
MC = 1900 – 1600 = ₹300

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 15
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 16

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 37.
Bring out the relationship between AR and MR curves under various price conditions?
Answer:
Relationship between AR and MR Curves:
If a firm is able to sell additional units at the same price then AR and MR will be constant and equal. If the firm is able to sell additional units only by reducing the price, then both AR and MR will fall and be different.

Constant AR and MR (at Fixed Price):
When price remains constant or fixed, the MR will be also constant and will coincide with AR. Under perfect competition as the price is uniform and fixed, AR is equal to MR and their shape will be a straight line horizontal to X-axis. The AR and MR Schedule under constant price is given in the below table and in the diagram.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 17
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 18

Declining AR and MR (at Declining Price):
When a firm sells large quantities at lower prices both AR and MR will fall but the fall in MR will be steeper than the fall in the AR.

It is to be noted that MR will be lower than AR. Both AR and MR will be sloping downwards straight from left to right. The MR curve divides the distance between AR Curve and Y-axis into two equal parts. The decline in AR need not be a straight line or linear. If the prices are declining with the increase in quantity sold, the AR can be non-linear, taking a shape of concave or convex to the origin.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 19
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 20

Samacheer Kalvi 11th Economics Cost and Revenue Analysis Additional Important Questions and Answers

Part – A

Multiple Choice Questions:

Question 1.
Real cost is _______
(a) Pain and sacrifice
(b) Subjective
(c) Efforts and sacrifice
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 2.
Social Cost is those costs ………………………
(a) Not borne by the firms
(b) Incurred by the society
(c) Health hazards
(d) All the above
Answer:
(d) All the above

Question 3.
Economic profit is ______
(a) TR-TC
(b) TC-TR
(c) AC-MC
(d) None
Answer:
(a) TR-TC

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 4.
Profit is the difference between Total Revenue and ………………………
(a) Total Cost
(b) Total Variable
(c) Total Fixed Cost
(d) Total Marginal Cost
Answer:
(a) Total Cost

Question 5.
How can you calculate the average cost?
(a) TVC + TFC
(b) TC – AC
(c) TC / Q
(d) AC / Q
Answer:
(c) TC / Q

Question 6.
What is an envelope curve?
(a) Planning curve
(b) Long-run cost curve
(c) U – shape curve
(d) V – shape curve
Answer:
(a) Planning curve

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 7.
Social cost is _______
(a) Not borne by the firm
(b) Borne by the society
(c) Air pollution by the firm
(d) All the above
Answer:
(d) All the above

Question 8.
Implicit cost is also known as ……………………….
(a) Explicit Cost
(b) Economic Cost
(c) Social Cost
(d) Imputed Cost
Answer:
(d) Imputed Cost

Question 9.
Long-run average cost curve can also be called as _______
(a) Planning curve
(b) Envelope curve
(c) Boat-shaped curve
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 10.
How will you calculate AR?
(a) AR = \(\frac{TR}{Q}\)
(b) AR = \(\frac{TVR}{Q}\)
(c) AR = \(\frac{TFR}{Q}\)
(d) AR = \(\frac{TAR}{Q}\)
Answer:
(a) AR = \(\frac{TR}{Q}\)

Part – B

Answer the following questions in one or two sentences.

Question 1.
What does money cost?
Answer:
Production cost expressed in money terms is called money cost.
(OR)
The total money expenses incurred by a firm in producing a commodity.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 2.
Define Floating Cost?
Answer:
Floating cost refers to all expenses that are directly associated with business activities but not with asset creation. It does not include the purchase of raw material as it is part of current assets. It includes payments like wages to workers, transportation charges, fees for power, and administration. Floating cost is necessary to run the day-to-day business of a firm.

Question 3.
What is the social cost?
Answer:
Social cost refers to the total cost borne by society due to the production of a commodity. (OR) Alfred Marshall defined the term social cost to represent the efforts and sacrifices undergone by the various members of the society in producing a commodity.

Part – C

Answer the following questions in one paragraph.

Question 1.
Bring out the distinction between short-run and long Run?
Answer:

Short Run

Long Run

1. Period of one year. Period of more than one year.
2. Atleast one of the inputs is fixed. All the inputs are variable.
3. Demand is the main determinant in fixing the price. Supply is the main determinant in fixing the price.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 2.
How is the average variable cost be calculated?
Answer:
It refers to the total variable cost per unit of output. It is obtained by dividing the total variable cost by the quantity of output.
AVC = \(\frac { TVC }{ Q } \)
(Eg.) If TFC is 300;
Q = 2 Find AVC
= \(\frac { 300 }{ 2 } \)
AVC = 150.

Question 3.
What is meant by Social Cost for example?
Answer:

  1. Social cost refers to the total cost borne by the society due to the production of a commodity.
  2. Alfred Marshall defined the term social cost to represent the efforts and sacrifices undergone by the various members of the society in producing a commodity.
  3. Social Cost is the cost that is not borne by the firm but incurred by others in the society.
  4. For example, large business firms cause air pollution, water pollution, and other damages ‘ in a particular area that involve a cost to society.
  5. These costs are treated as social costs. It is also called External Cost.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 4.
Write a short note on Average Revenue?
Answer:
Average revenue is the revenue per unit of the commodity sold. It is calculated by dividing the Total Revenue (TR) by the number of units sold (Q)
AR = TR /Q ; if TR = PQ, AR = PQ/Q = P
AR denotes Average Revenue, TR denotes Total Revenue and Q denotes Quantity of unit sold.
For example, if the Total Revenue from the sale of 5 units is ₹30, the Average Revenue is ₹6. (AR = 30/5 = 6) It is to be noted that AR is equal to Price.
AR = TR/Q
= PQ/Q
= P

Part – D

Answer the following question in about a page.

Question 1.
Write a short note on Total Revenue?
Answer:
Total revenue is the amount of income received by the firm from the sale of its products. It is obtained by multiplying the price of the commodity by the number of units sold.

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 21
Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 22

TR = P × Q
where TR denotes Total Revenue, P denotes Price, and Q denotes Quantity sold.
For example, a cell – phone company sold 100 cell – phones at the price of ₹500 each.
TR is ₹50,000. (TR = 500 × 100 = 50,000).
When the price is constant, the behaviour of TR is shown in the above table and diagram, assuming P = 5.
When P = 5; TR = PQ
When the price is declining with an increase in quantity sold. (Eg. Imperfect Competition on the goods market) the behaviour of TR is shown in the table and diagram. TR can be obtained from the Demand function: If Q = 11 – P,

When P = 1, Q = 10

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 23

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 24

TR = PQ = 1 × 10 = 10
When P = 3, Q = 8, TR = 24 When P = 0, Q = 1, TR = 10

Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis

Question 2.
Bring out the relationship between TR, AR, MR, and Elasticity of demand?
Answer:
The relationship among TR, AR, and MR Curves:
When marginal revenue is positive, total revenue rises, when MR is zero the total revenue becomes maximum. When marginal revenue becomes negative total revenue starts falling. When AR and MR both are falling, then MR falls at a faster rate than AR.

TR, AR, MR, and Elasticity of demand:
The relationship among AR, MR, and elasticity of demand (e) is stated as follows.
MR = AR (e – 1/e)

The relationship between the AR curve and MR curve depends upon the elasticity of the AR curve [AR = DD = Price]

  1. When the price elasticity of demand is greater than one, MR is positive and TR is increasing.
  2. When the price elasticity of demand is less than one, MR is negative and TR is decreasing.
  3. When price elasticity of demand is equal to one, MR is equal to zero and TR is maximum and constant.

It is to be noted that, the output range of 1 to 5 units, the price elasticity of demand is greater than one according to the total outlay method. Hence, TR is increasing and MR is positive.Samacheer Kalvi 11th Economics Guide Chapter 4 Cost and Revenue Analysis img 25

  1. At the output range of 5 to 6 units, the price elasticity of demand is equal to one. Hence, TR is maximum and MR is equaled to zero.
  2. At the output range of 6 units to 10 units, the price elasticity of demand is less than unity. Hence, TR is decreasing and MR is negative.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Students can download 11th Economics Chapter 3 Production Analysis Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 3 Production Analysis

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

Part – A

Multiple Choice Questions:

Question 1.
The primary factors of production are ………………………..
(a) Labour and Organisation
(b) Labour and Capital
(c) Land and Capital
(d) Land and Labour
Answer:
(d) Land and Labour

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
The man-made physical goods used to produce other goods and services are referred to as.
(a) Land
(b) Labour
(c) Capital
(d) Organization.
Answer:
(c) Capital

Question 3.
The formula for calculating AP is ………………………
(a) ∆TP/N
(b) ∆TP/∆N
(c) TP/MP
(d) TP/N
Answer:
(d) TP/N

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 4.
Which factor is called the changing agent of the Society
(a) Labourer
(b) Land
(c) Organizer
(d) Capital
Answer:
(c) Organizer

Question 5.
Who said, that one of the keys of an entrepreneur is “uncertainty – bearing”?
(a) JB Clark
(b) Schumpeter
(c) Knight
(d) Adam Smith
Answer:
(c) Knight

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 6.
The functional relationship between “inputs” and “outputs” is called as
(a) Consumption Function
(b) Production Function
(c) Savings Function
(d) Investment Function
Answer:
(b) Production Function

Question 7.
In a firm 5 units of factors produce 24 units of the product. When the number of factor increases by one, the production increases to 30 units. Calculate the Average Product.
(a) 30
(b) 6
(c) 5
(d) 24
Answer:
(c) 5

Question 8.
The short-run production is studied through
(a) The Laws of Returns to Scale
(b) The Law of Variable Proportions
(c) Iso-quants
(d) Law of Demand
Answer:
(b) The Law of Variable Proportions

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 9.
The long-run production function is explained by ………………………
(a) Law of Demand
(b) Law of Supply
(c) Returns to Scale
(d) Law of Variable Proportions
Answer:
(c) Returns to Scale

Question 10.
An Iso-quant curve is also known as
(a) Inelastic Supply Curve
(b) Inelastic Demand Curve
(c) Equi-marginal Utility
(d) Equal Product Curve
Answer:
(d) Equal Product Curve

Question 11.
Mention the economies reaped from inside the firm.
(a) Financial
(b) Technical
(c) Managerial
(d) All of the above
Answer:
(d) All of the above

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 12.
Cobb-Douglas production function assumes
(a) Increasing returns to scale
(b) Diminishing returns to scale
(c) Constant returns to scale
(d) All of the above
Answer:
(c) Constant returns to scale

Question 13.
Name the returns to scale when the output increases by more than 5%, for a 5% increase in the inputs.
(a) Increasing returns to scale
(b) Decreasing returns to scale
(c) Constant returns to scale
(d) All of the above
Answer:
(a) Increasing returns to scale

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 14.
Which of the following is not a characteristic of land?
(a) It’s a limited supply
(b) It is mobile
(c) Heterogeneous
(d) Gift of Nature
Answer:
(b) It is mobile

Question 15.
The product obtained from additional factors of production is termed as ……………………….
(a) Marginal product
(b) Total product
(c) Average product
(d) Annual product
Answer:
(a) Marginal product

Question 16.
Modern economists have propounded the law of
(a) Increasing returns
(b) Decreasing returns
(c) Constant returns
(d) Variable proportions.
Answer:
(a) Increasing returns

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 17.
Producer’s equilibrium is achieved at the point where ……………………….
(a) Marginal rate of technical substitution (MRTS) is greater the price ratio
(b) MRTS is lesser than the price ratio
(c) MRTS and price ratio are equal to each other
(d) The slopes of isoquant and isocost lines are different.
Answer:
(c) MRTS and price ratio are equal to each other

Question 18.
The relationship between the price of a commodity and the supply of a commodity is
(a) Negative
(b) Positive
(c) Zero
(d) Increase
Answer:
(b) Positive

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 19.
If the average product is decreasing, then marginal product ……………………….
(a) Must be greater the average product
(b) Must be less than the average product
(c) Must be increasing
(d) Both a and c
Answer:
(b) Must be less than average product

Question 20.
A production function measures the relation between
(a) Input prices and output prices
(b) Input prices and the quantity of output
(c) The number of inputs and the quantity of output.
(d) The number of inputs and input prices.
Answer:
(c) The number of inputs and the quantity of output.

Part – B

Answer the following questions in one or two sentences.

Question 21.
Classify the factors of production?
Answer:
Factors of production are classified as land, labor, capital, and organization.

  1. Land and Labour – Primary factors
  2. Capital and organization – Secondary factors.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 22.
Define Labour.
Answer:
According to Marshall, labour represents services provided by the factor labour, which helps in yielding an income to the owner of the labor-power.

Question 23.
State the production function?
Answer:
The production function is the relationship between inputs of productive services and outputs of product per unit of time.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 24.
Define the Marginal Product of a factor.
Answer:
Marginal product is the addition made to the total product when one more unit of the variable input is employed.
MP = TP (n)-TP (n- 1)
(OR)
Marginal product is the ratio of the change in the total product to the change in the units of input.
MP = ∆TP / ∆N

Question 25.
What is the Iso – cost line?
Answer:
An Iso-cost line represents different combinations of inputs which show the same amount of cost.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 26.
What are the conditions for the producer’s equilibrium?
Answer:
The Conditions For Producer’S Equilibrium:

  1. The Iso-cost line must be tangent to the Iso-quant curve.
  2. At the point of tangency, the Iso-quant curve must be convex to the origin or MRTSLK must be declining.

Question 27.
What are the reasons for the upward-sloping supply curve?
Answer:
As the price of the commodity increases the quantum supplied also increases. So the supply curve has a positive slope.
The quantum supplied of commodity x is represented on X-axis. And the price of the commodity is represented on the Y-axis. The points such as a, b, c, d, and e on the supply curve SS’, represent various quantities at different prices.

  1. Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 1

PART – C

Answer the following questions in one paragraph.

Question 28.
What are the characteristics of land?
Answer:
The Characteristics of Land:

  1. Land is a primary factor of production.
  2. Land is a passive factor of production.
  3. Land is the free gift of nature.
  4. Land has no cost of production.
  5. Land is inelastic in supply.
  6. Land is permanent and immovable.
  7. Land is heterogeneous and has alternative uses.
  8. Land is subject to law of diminishing returns.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 29.
What are the factors governing the elasticity of supply?
Answer:
1. Nature of the commodity: The elasticity of supply of durable goods is high but perishables have a low elasticity of supply.

2. Cost of production: Under constant or increasing returns the elasticity of supply is greater, under diminishing returns elasticity is less.

3. Technical condition: In large-scale production, supply cannot be adjusted easily. So elasticity of supply is lesser and vice versa.

4. Time factor: During a very short period, supply cannot be adjusted. In a short period, variable factors can be changed so elasticity is more and in a long period, supply is highly elastic.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 30.
What are the functions of entrepreneurs?
Answer:

  1. An organizer is the initiator of the business.
  2. A successful entrepreneur is always an innovator.
  3. An organizer co-ordinates the factors of production to start and run the business or production.
  4. An organizer controls and directs the factors to get better results and he supervises for the efficient functioning of all.
  5. There are risk-taking and uncertainty bearing obstacles.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 31.
State and explain the elasticity of supply?
Answer:
The elasticity of supply may be defined as the degree of responsiveness of change in supply to change in price on the part of sellers.
It is Mathematically expressed as,
Elasticity of supply = Proportionate change in supply / Proportionate change in price
es = \(\frac { \Delta Q_{ S } }{ Q_{ S } } \) / \(\frac { \Delta P }{ P } \)
es = \(\frac { \Delta Q_{ S } }{ \Delta P } \) × \(\frac{P}{Qs}\)
Where Qs represents the supply, P represents price, ∆denotes a change.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 32.
Bring out the Relationship among Total, Average and Marginal Products?
Answer:
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 2

Question 33.
Illustrate the concept of producer’s Equilibrium?
Answer:
Producer equilibrium implies the situation where the producer maximizes his output. It is also known as the optimum combination of the factors of production. In short, the producer manufactures a given amount of output with the ‘least-cost combination of factors’, with his given budget.

Optimum Combination of Factors implies either there is output maximization for given inputs or there is cost minimization for the given output.

Conditions for Producer Equilibrium
The two conditions that are to be fulfilled for the attainment of producer equilibrium are:

  1. The isocost line must be tangent to the iso-quant curve.
  2. At the point of tangency, the iso-quant curve must be convex to the origin or MRTSLk must be declining.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 34.
State the Cobb-Douglas Production Function.
Answer:
The Cobb-Douglas production function was developed by Charles W.Cobb and Paul H. Douglas.
Cobb-Douglas production function describes how much output can be made with capital and labour inputs.
Q = ALα Kβα
Q – output, A – positive constant, K – capital, L – Labour
α and β – Elasticity coefficients of outputs for the inputs,
α + β = 1 denotes constant returns to scale.

PART – D

Answer the following questions in about a page.

Question 35.
Examine the Law of Variable Proportions with the help of a diagram?
Answer:
The law states that if all other factors are fixed and one input is varied in the short run, the total output will increase at an increasing rate at first instance, be constant at a point and then eventually decrease. The marginal product will become negative at last.

According to G.Stigler, “As equal increments of one input are added, the inputs of other productive services being held constant, beyond a certain point, the resulting increments of the product will decrease, i.e., the marginal product will diminish”.

Assumptions:
The Law of Variable Proportions is based on the following assumptions.

  1. Only one factor is variable while others are held constant.
  2. All units of the variable factor are homogeneous.
  3. The product is measured in physical units.
  4. There is no change in the state of technology.
  5. There is no change in the price of the product.

Total Product (TP):
Total product refers to the total amount of commodity produced by the combination of all inputs in a given period of time. Summation of marginal products, i.e. TP = LMP where, TP = Total Product, MP = Marginal Product

Average Product (TP):
Average Product is the result of the total product divided by the total units of the input employed. In other words, it refers to the output per unit of the input. Mathematically, AP = TP/N Where, AP = Average Product TP = Total Product N = Total units of inputs employed Marginal Product (MP)

Marginal Product is the addition or the increment made to the total product when one more unit of the variable input is employed. In other words, it is the ratio of the change in the total product to the change in the units of the input. It is expressed as MP = ∆TP/∆N

where MP = Marginal Product
TP(n) = Change in total product
∆N = Change in units of input

It is also expressed as
MP = TP (n) – TP (n – 1)
Where MP = Marginal Product
TP(n – 1) = Total product of employing nA unit of a factor
TP(n – 1) = Total product of employing the previous unit of a factor, that is, (n – 1)th unit of a factor.
The Law of Variable Proportions is explained with the help of the following schedule and diagram:Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 3Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 4

In the above table, units of variable factor (labour) are employed along with other fixed factors of production. The table illustrates that there are three stages of production. Though total product increases steadily at the first instant, constant at the maximum point, and then diminishes, it is always positive forever.

While total product increases, the marginal product increases up to a point and then decreases. The total product increases up to the point where the marginal product is zero. When total product tends to diminish marginal product becomes negative.

In the diagram, the number of workers is measured on X-axis while TPL, APL, and MPL are denoted on Y-axis. The diagram explains the three stages of production as given in the above table.

Stage – I
In the first stage, MPL increases up to the third labourer and it is higher than the average product so the total product is increasing at an increasing rate. The tendency of total production to increase at an increasing rate stops at point A and it begins to increase at a decreasing rate. This point is known as ‘Point of Inflexion’.

Stage – II
In the second stage, MPL decreases up to the sixth unit of labor where the MPL curve intersects the X-axis. At the fourth unit of labor MPL = APL. After this, the MPL curve is lower than the APL. TPL increases at a decreasing rate.

Stage – III
The third stage of production shows that the sixth unit of labour is marked by negative MPL, the APL continues to fall but remains positive. After the sixth unit, TPL declines with the employment of more units of the variable factor, labour.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 36.
List out the properties of isoquants with the help of diagrams?
Answer:
Properties of Iso – quant Curve:
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 5

1. The isoquant curve has negative slope:
It slopes downwards from left to right indicating that the factors are substitutable. If more of one factor is used, less of the other factor is needed for producing the same level of output.

In the diagram combination, A refers to more capital K5 and less labour L2 As the producer moves to B, C, and D, more labour and less capital are used.

2. Convex to the origin.
This explains the concept of Diminishing Marginal Rate of Technical Substitution (MRTSLK). For example, the capital substituted by 1 unit of labour goes on decreasing when moved from top to bottom. If so, it is called diminishing MRTS. Constant MRTS (straight line) and increasing MRTS (concave) are also possible. It depends on the nature of the isoquant curve.

This means that factors of production are substitutable to each other. The capital substituted per unit of labour goes on decreasing when the isoquant is convex to the origin.Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 6

3. Nonintersection of Iso – quant curves:
For instance, point A lies on the isoquants IQ1 and IQ2. But the point C shows a higher output and the point B shows a lower level of output IQ1
If C = A, B = A, then C = B. But C > B which is illogical.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 7

4. An upper isoquant curve represents a higher level of output:
Higher IQS show higher outputs and lower IQS show lower outputs, for the upper isoquant curve implies the use of more factors than the lower isoquant curve.
The arrow in the figure shows an increase in the output with a right and upward shift of an isoquant curve.
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 8

5. Isoquant curve does not touch either X-axis or Y-axis:
No isoquant curve touches the X-axis or Y-axis because in IQ1 only capital is used, and in IQ2 only labour is used.
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 9

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 37.
Elucidate the Laws of Returns to scale. Illustrate?
Answer:

In the long-run all factors are variable. The laws of returns to scale explain the relationship between output and the scale of inputs in the long-run when all the inputs are increased in the same proportion.
Assumptions :

  1. All the factors are variable except the organization.
  2. There is no change in technology.
  3. There is perfect competition in the market.
  4. Outputs or returns are increased in physical quantities.

Three phases of returns to scale:
1. Increasing returns to scale:
If all inputs are increased by one percent, output increase by more than one percent.

2. Constant returns to scale:
In this case, if all inputs are increased by one percent, output increases by one percent.
Diagrammatic Illustration:
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 10
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 10a

The three laws of returns to scale can be explained with the help of the diagram below.

In the figure, the movement from point a to point b represents increasing returns to scale. Because, between these two points output has doubled, but output has tripled. The law of constant returns to scale is implied by the movement from point b to point c.

Because between these two points inputs have doubled and output also has doubled. Decreasing returns to scale are denoted by the movement from the point c to point d since doubling the factors from 4 units to 8 units product less than the increase in inputs, that is by 33.33%.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 38.
Explain the internal and external economies of scale?
Answer:
Internal Economies of Scale:

  1. Internal Economies of scale refer to the advantages enjoyed by the production unit which causes a reduction in the cost of production of the commodity.
  2. For example, a firm enjoying the advantage of an application of most modem machinery, generation of internal capital, and improvement in managerial skill, etc. are sure to reduce the cost of production. They are of various types:

1. Technical Economies:

  • When the size of the firm is large, a large amount of capital can be used.
  • There is a possibility to introduce up-to-date technologies; this improves the productivity of the firm.
  • Research and development strategies can be applied easily.

2. Financial Economies:

  • Big firms can float shares in the market for capital expansion, while small firms cannot easily float shares in the market.

3. Managerial Economies:

  • Large scale production facilitates specialization and delegation.

4. Labour Economies:

  • Large scale production implies greater and minute division of labour.
  • This leads to specialization which enhances the quality.
  • This increases the productivity of the firm.

5. Marketing Economies:

  • In the context of large-scale production, the producers can both buy raw-materials in bulk at a cheaper cost and can take the products to distant markets.
  • They enjoy a huge bargaining power.

6. Economies of survival:

  • Product diversification is possible when there is large scale production.
  • This reduces the risk in production.
  • Even if the market for one product collapses, the market for other commodities offsets it.

External Economies of Scale:

  1. External Economies of Scale refer to changes in any factor outside the firm causing an improvement in the production process.
  2. This can take place in the case of the industry also.
  3. These are the advantages enjoyed by all the firms in the industry due to the structural growth.
  4. Important external economies of scale are listed below:
    • Increased transport facilities
    • Banking facilities
    • Development of townships
    • Development of information and communication.

Samacheer Kalvi 11th Economics Production Analysis Additional Important Questions and Answers

Part – A

Multiple Choice Questions:

Question 1.
The labour exercised without expecting income is _______
(a) Service
(b) Physical labour
(c) Mental labour
(d) None of the above
Answer:
(a) Service

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
Land and Labour are called ……………………. factors.
(a) Primary
(b) Secondary
(c) Territory
(d) Service
Answer:
(a) Primary

Question 3.
Investment in an advertisement, expenses on capital. training programme are examples of _______ capital
(a) Tangible
(b) Intangible
(c) Visible
(d) Financial
Answer:
(c) Visible

Question 4.
Reward Paid to capital is ……………………….
(a) Interest
(b) Profit
(c) Wages
(d) Rent
Answer:
(a) Interest

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 5.
Marginal product is
(a) MP = ∆TP / ∆N
(b) MP = ∆AP / ∆N
(c) MP = TP / N
(d) MP = ∆P / N
Answer:
(a) MP = ∆TP / ∆N

Question 6.
What does a successful entrepreneur will always be made?
(a) Organization
(b) Investment
(c) Capital
(d) Innovation
Answer:
(d) Innovation

Question 7.
_______ is the exertion of body or mind in the production process.
(a) Labour
(b) Capital
(c) Land
(d) Financial capital
Answer:
(a) Labour

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 8.
Gifts of Nature is called ………………………
(a) Land
(b) Labour
(c) Capital
(d) Production
Answer:
(a) Land

Question 9.
_______ is the gift of nature.
(a) Labour
(b) Capital
(c) Land
(d) Organization
Answer:
(c) Land

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 10.
Labour cannot be separated from ……………………….
(a) Capital
(b) Labourer
(c) Profit
(d) Organisation
Answer:
(b) Labourer

Part – B

Answer the following questions in one or two sentences.

Question 1.
What is production?
Answer:
Production is the process of using various factors of production (inputs)to make output for consumption.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
Classify the factors determining supply?
Answer:

  1. Price of the commodity
  2. Price of other commodities
  3. Price of factors
  4. Price expectations
  5. Technology
  6. Natural factors
  7. Discovery of new raw materials
  8. Taxes and subsidies
  9. The objective of the firm

Question 3.
What is capital?
Answer:
Capital is a produced means of production. – Bohm – Bawerk

Part – C

Answer the following questions in one paragraph.

Question 1.
Explain the difference between internal and external economies?
Answer:

Internal Economies of Scale

External Economies of Scale

1. Expansion of the firm itself. Expansion of the industry.
2. Lower long-run average cost. Benefits most all firms.
3. Efficiencies from larger-scale production. Agglomeration economies are important.
4. Range of economies (e.g) Technical and Financial. Helps to explain the rapid growth of many cities.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
What is financial capital?
Answer:
Financial capital means the assets needed by a firm to provide goods and services measured in terms of monetary value. It is normally raised through debt and equity issues. The prime aim of it is to mass wealth in terms of profit.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 3.
What are the Supply Function and its assumptions?
Answer:
The supply of a commodity depends on factors such as the price of the commodity, price of labour, price of capital, the state of technology, number of firms, prices of related goods, and future price expectations, and so on. Mathematically the supply function is QS = f(Px, Pr, Pf, T, O, E)

Where QS = Quantity supplied of x commodity
Px = Price of x Commodity
Pr = Price of related goods
Pf = Price of factors of production
T = Technology
O = Objective of the producer
E = Expected Price of the commodity.

Assumptions:
Law of Supply is based on the following assumptions.

  1. There is no change in the prices of factors of production
  2. There is no change in the price of capital goods
  3. Natural resources and their availability remain the same
  4. Prices of substitutes are constant
  5. There is no change in technology
  6. Climate remains unchanged
  7. Political situations remain unchanged
  8. There is no change in tax policy

Part – D

Answer the following questions in about a page?

Question 1.
What are the diseconomies of scale? Mention its types.
Answer:
The diseconomies of the scale are a disadvantage to a firm or an industry or an organization. It increases the cost of production. These diseconomies are of two types.

1. Internal diseconomies:
When the scale of production increases beyond the optimum limit, its efficiency may come down.

2. External diseconomies:
It refers to the threat or disturbance to a firm or an industry from factor lying outside it.
For example, a bus strike prevents the easy and correct entry of the workers into the firm. Similarly, the rent of a firm increases very much if new economic units are established in the locality.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
What are the types of elasticity of supply?
Answer:
There are five types of elasticity of supply

1. Relatively Elastic Supply:
The coefficient of elastic supply is greater than 1 [ES >1]. One percent change in the price of a commodity causes more than one percent change in the quantity supplied of the commodity.
Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 11

2. Unitary Elastic Supply.
The coefficient of elastic supply is equal to 1 [ES = 1]. One percent change in the price of a commodity causes an equal [one percent ] change in the quantity supplied of the commodity.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 12

3. Relatively Inelastic Supply:
The coefficient of elasticity is less than one [ES < 1], One percent change in the price of a commodity causes a less than one percent change in the quantity supplied of the commodity.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 13
4. Perfectly Inelastic Supply:
The coefficient of elasticity is equal to zero [ES = 0], One percent change in the price of a commodity causes no change in the quantity supplied of the commodity.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 14

5. Perfectly Elastic Supply:
The coefficient of elasticity of supply is infinity [ES – α]. One percent change in the price of a commodity causes an infinite change in the quantity supplied of the commodity.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis img 15

ACTIVITY

Question 1.
Visit a market and write a report on the factors that influence the quantity of supply of a commodity of your locality?
Answer:
Things that cause changes in supply are also called influences of supply.
The influences on supply are:

  1. Inputs
  2. Productivity
  3. Technology
  4. Taxes
  5. Subsidises
  6. Government regulation
  7. Number of sellers
  8. Political conflict

Supply and Demand Balance:

  1. It supply is more price goes down. Demand is more price goes up.
  2. Commodity movement get these number [PIS]

P = Production
I = Import
S = Stock

These three represent supply of any commodity = [E × C]
E = Export;
C = Consumption

  1. These two represent demand.
  2. PIS is more than E × C., then that commodity price goes down.
  3. E × C is more than PIS that commodity price goes up.
  4. Prediction of any commodity price, you will predict it before that supply-demand imbalance.
  5. That means today’s wheat or rice prices are reflections of what will happen to its supply-demand in the next few months rather than its current balance.
  6. India’s largest commodity exchange currently working as a trader in Agricultural commodities.
  7. The supply is interfered with by legal or illegal cartels.
  8. The price is also inflated by opportunistic government charges.
  9. A price ceiling prevents a price from rising above the ceiling.
  10. Wheat has a price ceiling of 2400 per metric tonne, $400 is the highest amount supplier can charge.

Samacheer Kalvi 11th Economics Guide Chapter 3 Production Analysis

Question 2.
Visit a factory and show how the four factors of production are effectively employed to produce the product in your locality?
Answer:

  1. A Factory is considered capital in the factor of production.
  2. Capital is any good that was used to create other goods.
  3. A natural resource can’t be land, since it’s not the actual workers within the factory it can’t labor, so it has to be capital.

Factors affecting the location of Industries are as follows:

  1. Raw Materials
  2. Capital
  3. Transport
  4. Market
  5. Water
  6. Power
  7. Land
  8. Labour
  9. Communication

The main factors affecting the location of Industries are as follows:

  1. Land
  2. Labour
  3. Capital
  4. Entrepreneurship
    • Factors of production refer to the inputs of the production process.
    • Factors of production are resources that produce goods and services.

These are four categories of factors of production:

Land:
Natural resources that we use to produce goods and services.

Example:
Oil, gas and goal, water, etc.

Labour:
The work time and work effort that people devote to producing goods and services. This includes human capital which is the quality of the labour forming from knowledge and skills of the person obtained from education, on-the-job training, and work experience.

Capital:

  1. The tools, instruments, machine, buildings, and other items that are used to produce goods and services.
  2. This includes machinery, hammers, etc.

Entrepreneurship:
The human resource that organizes labour, land, and capital. This includes the idea, plan, etc. about how and what to produce.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Students can download 11th Economics Chapter 10 Rural Economy Questions and Answers, Notes, Samcheer Kalvi 11th Economics Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 10 Rural Economy

Samacheer Kalvi 11th Economics Rural Economy Text Book Back Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Which is considered as the basic unit for rural areas?
(a) Panchayat
(b) Village
(c) Town
(d) Municipality
Answer:
(b) Village

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 2.
Which feature is identified with rural areas?
(a) Low population density
(b) High population density
(c) Low natural resources
(d) Low human resources
Answer:
(a) Low population density

Question 3.
Identity the feature of rural economy?
(a) Dependence on agriculture
(b) High population density
(c) Low level of population
(d) Low level of inequality
Answer:
(a) Dependence on agriculture

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 4.
What percentage of the total population live in rural area, as per 2011 censes?
(a) 40
(b) 50
(c) 60
(d) 70
Answer:
(c) 60

Question 5.
How do you term people employed in excess over and above the requirements?
(a) Unemployment
(b) Underemployment or Disguised Unemployment
(c) Full employment
(d) Self – employment
Answer:
(b) Underemployment or Disguised Unemployment

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 6.
What is the term used to denote the coexistence of two different features in an economy?
(a) Technology
(b) Dependency
(c) Dualism
(d) Inequality
Answer:
(c) Dualism

Question 7.
The process of improving the rural areas, rural people and rural living is defined as ………………………….
(a) Rural economy
(b) Rural economics
(c) Rural employment
(d) Rural development
Answer:
(d) Rural development

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 8.
Identify the agriculture related problem of rural economy.
(a) Poor communication
(b) Small size of landholding
(c) Rural poverty
(d) Poor banking network
Answer:
(b) Small size of landholding

Question 9.
The recommended nutritional intake per person in rural areas.
(a) 2100 calories
(b) 2200 calories
(c) 2300 calories
(d) 2400 calories
Answer:
(d) 2400 calories

Question 10.
Indicate the cause for rural poverty.
(a) Lack of non-farm employment
(b) High employment
(c) Low inflation rate
(d) High investment
Answer:
(a) Lack of non-farm employment

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 11.
What is the other name for concealed unemployment?
(a) Open
(b) Disguised
(c) Seasonal
(d) Rural
Answer:
(b) Disguised

Question 12.
How do you term the employment occurring only on a particular season?
(a) Open
(b) Disguised
(c) Seasonal
(d) Rural
Answer:
(c) Seasonal

Question 13.
Identify an example for rural industries?
(a) Sugar factory
(b) Mat making industry
(c) Cement industry
(d) Paper industry
Answer:
(b) Mat making industry

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 14.
How much share of rural families in India is in debt?
(a) Half
(b) One fourth
(c) Two third
(d) Three fourth
Answer:
(d) Three fourth

Question 15.
Identify the cause for rural indebtedness in India.
(a) Poverty
(b) High population
(c) High productivity
(d) Full employment
Answer:
(a) Poverty

Question 16.
In which year, Regional Rural Banks came into existence?
(a) 1965
(b) 1970
(c) 1975
(d) 1980
Answer:
(c) 1975

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 17.
Identify the year of launch of MUDRA Bank?
(a) 1995
(b) 2000
(c) 2010
(d) 2015
Answer:
(d) 2015

Question 18.
Identify the year in which National Rural Health Mission was launched.
(a) 2000
(b) 2005
(c) 2010
(d) 2015
Answer:
(b) 2005

Question 19.
Identify the advantages of rural roads.
(a) Rural marketing
(b) Rural employment
(c) Rural development
(d) All the above
Answer:
(d) All the above

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 20.
“An Indian farmer is bom in debt, lives in debt, dies in debt and bequeaths debt”-who said this?
(a) Adam Smith
(b) Gandhi
(c) Amartya Sen
(d) Sir Malcolm Darling
Answer:
(d) Sir Malcolm Darling

PART – B

Answer the following questions in one or two sentences.

Question 21.
Define Rural Economy?
Answer:
Rural economy refers to villages. Rural economics deals with the application of economic principles in understanding and developing rural areas.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 22.
What do you mean by Rural Development?
Answer:

  1. Rural Development is defined as an overall improvement in the economies and social well being of villagers and the institutional and physical environments in which they live.
  2. According to the World Bank “Rural Development is a strategy designed to improve the economic and social life of a specific group of people – rural poor.
  3. Rural Development is a process of improving the rural areas, rural people, and rural living.

Question 23.
Rural Poverty – Define?
Answer:
Rural poverty refers to the existence of poverty in rural areas. Poverty in India is the situation in which an individual fails to earn sufficient income to buy the basic minimum of subsistence.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 24.
Define Open Unemployment?
Answer:

  1. Open Unemployment: Unemployed persons are identified as they remain without work.
  2. This type of unemployment is found among agricultural labourers, rural artisans, and literate persons.

Question 25.
What is meant by Disguised Unemployment?
Answer:

  1. Many are employed below their productive capacity and even if they are withdrawn from work the output will not diminish. It is also called Disguised Unemployment or Underemployment. This type of unemployment is found among small and marginal farmers, livestock rearers, and rural artisans.
  2. Disguised unemployment in rural India is 25 percent to 30 percent.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 26.
Define Cottage Industry?
Answer:

  1. Cottage Industries are generally associated with agriculture and provide both part-time and full-time jobs are in rural areas.
  2. Cottage Industries are mat, coir and basket making industries.
  3. The principal cottage industries of India are hand-loom weaving [Cotton, Silk, Jute, etc.] pottery, washing soap making, conch shell, handmade paper, horn button, mother of pearl button, Cutlery, lock, and key making industries. These are almost similar to the cottage industries.

Question 27.
What do you mean by Micro Finance?
Answer:
Microfinance is a financial service that offers loans, savings, and insurance to entrepreneurs and small business owners.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 28.
State any two causes of the housing problem in rural areas?
Answer:

  1. House is one of the basic needs of every family. The provision of better housing facilities increases the productivity of labour. The housing problem is getting aggravated due to the rapid adaptation of nuclear families.
  2. Housing does not mean the provision of a house alone but also proper water supply, good sanitation, proper disposal of sewage, etc.

Question 29.
Define Rural Electrification?
Answer:

  1. Rural Electrification refers to providing electrical power to rural areas.
  2. The main aims of rural electrification are to provide electricity to agricultural operations and to enhance agricultural productivity.
  3. To increase cropped area, to promote rural industries, and to lighting the villages.
  4. In order to improve this facility, the supply of electricity is almost free for agricultural purposes in many states, and the electricity tariff is charged in rural areas is kept very low.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 30.
State any two factors hindering Rural Electrification in India?
Answer:
The factors hindering the progress of rural electrification in India are:

  1. Lack of Funds: The generation and transmission of power involve huge expenditure and the fund allocation is low.
  2. Inter-State Disputes: As there are inter-state disputes in managing power projects, power distribution is affected.
  3. Uneven Terrain: As rural topography is uneven without proper connection, developing new lines are costlier and difficult.
  4. High Transmission Loss: Transmission loss in power distribution is almost 25 percent in rural areas.
  5. Power Theft: Unauthorized use and diversion of power are evil practices adopted by affluent people that hinder the rural electrification process.

PART – C

Answer the following questions in about a paragraph.

Question 31.
State the importance of Rural Development?
Answer:

  1. India cannot be developed by retaining rural as backward
  2. As the rural economy supports the urban sector, the backwardness of the rural sector would be a major impediment to the overall progress of the economy.
  3. Improvements in education, health, and sanitation in villages can help avoid many urban problems.
  4. To provide gainful employment and improve food production.
  5. The evils of brain drain and rural-urban migration can be reduced.
  6. For the better utilization of resources.
  7. To minimize the gap between rural and urban areas.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 32.
Explain the causes for Rural Backwardness?
Answer:

  1. The evils of brain-drain and rural-urban migration can be reduced if rural areas are developed.
  2. In order to better utilize the unused and under-utilized resources, there is a need to develop the rural economy.
  3. Rural Development should minimize the gap between rural and urban areas in terms of the provision of infrastructural facilities. It was called PURA by former President Abdul Kalam.
  4. In order to improve the nation’s status in the global arena in terms of economic indicators like,
    • Human Development Index [HDI]
    • Woman Empowerment Index [WEI]
    • Gender Disparity Index [GDI]
    • Physical Quality of Life Index [PQLI] and
    • Gross National Happiness Index [GNHI] should be given due attention.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 33.
Enumerate the remedial measures of Rural poverty?
Answer:
The creation of employment opportunities would support the elimination of poverty. The poverty eradication schemes implemented in India are

  1. 20 point programme.
  2. Integrated Rural Development Programme (IRDP)
  3. Training Rural Youths for Self Employment (TRYSEM)
  4. Food for Work Programme (FWP)
  5. National Rural Employment Programme (NREP)
  6. RLEGP, JRY and MGN REGS

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 34.
What are the remedial measures for Rural unemployment?
Answer:
Remedial measures for Rural unemployment:
In order to reduce rural unemployment in the country, there is a need to take integrated and coordinated efforts from various levels. A few remedial measures are listed below: Subsidiary

Occupation:
To reduce seasonal unemployment rural people should be encouraged to adopt subsidiary occupations. Loans should be granted and proper arrangements should be made for marketing their products.

Rural Works Programme:
Rural Works Programme such as construction and maintenance of roads, digging of drains, canals, etc., should be planned during the off-season to provide gainful employment to the unemployed.

Irrigation Facilities:
Since rainfall is uncertain irrigation facilities should be expanded to enable the farmers to adopt multiple cropping.

Rural Industrialization:
To provide employment new industries should be set up in rural areas. Technical Education: Employment oriented courses should be introduced in schools and colleges to enable the literate youth to start their own units.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 35.
Write a note on Regional Rural Banks?
Answer:
Regional rural banks came into existence in 1975. RRBs are recommended with a view to developing the rural economy by providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs.

RRBs are set up by the joint efforts of the center and state governments and commercial banks. At present, there are 64 RRBs in India. RRBs confine their lending only to the weaker sections and their lending rates are at par with the prevailing rate of cooperative societies.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 36.
Mention the features of SHGs?
Answer:
Major features of SHGs [Self Help Groups]

  1. SHG is generally an economically homogeneous group formed through a process of self-selection based upon the affinity of its members.
  2. Most SHGs are women’s groups with membership ranging between 10 and 20.
  3. SHGs have well-defined rules and by-laws, hold regular meetings and maintain records and savings and credit discipline.
  4. SHGs are self-managed institutions characterized by participatory and collective decision making.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 37.
List out the objectives of MUDRA Bank?
Answer:

  1. Regulate the lender and the borrower of microfinance and bring stability to the microfinance system.
  2. Extend finance and credit support to microfinance institutions.
  3. Register all MFIs and introduce a system of performance rating and accreditation for the last time.
  4. Offer a credit guarantee scheme for providing guarantees to loans being offered to micro-businesses.
  5. Introduce appropriate technologies to assist in the process of efficient lending, borrowing, and monitoring of distributed capital.

PART – D

Answer for each question in about a page.

Question 38.
‘The features of Rural Economy are peculiar’- Argue?
Answer:
Features of Rural Economy:
1. Village is an Institution:
The villagers a primary institution and it satisfies almost all the needs of the rural community. The rural people have a feeling of belongingness and a sense of unity towards each other.

2. Dependence on Agriculture:
The rural economy depends much on nature and agricultural activities. Agriculture and allied activities are the main occupations in rural areas.

3. Life of Rural people:
Lifestyles in villages are very simple. Public services like education, housing, health and sanitation, transport and communication, banking, roads, and markets are limited and unavailable.

The standards of living of the majority of rural people are poor and pitiable. In terms of methods of production, social organization, and political mobilization, the rural sector is extremely backward and weak.

4. Population Density:
Population density, measured by the number of persons living per sq. km is very low and houses are scattered in the entire villages.

5. Employment:
There exists unemployment, seasonal unemployment, and underemployment in rural areas.

6. Poverty:
Poverty is a condition where the basic needs of the people like food, clothing, and shelter are not being met.

7. Indebtedness:
People in rural areas are highly indebted owing to poverty and underemployment, lack of farm and non-farm employment opportunities, low wage employment, seasonality in production, poor marketing network, etc.

8. Rural Income:
The income of the rural people is constrained as the rural economy is not sufficiently vibrant to provide for them.

9. Dependency:
Rural households are largely dependent on social grants and remittances from family members working in urban areas and cities.

10. Dualism:
Dualism means the co-existence of two extremely different features like developed and underdeveloped. These characteristics are very common in rural areas.

11. Inequality:
The distributions of income, wealth, and assets are highly skewed among rural people. Land, livestock and other assets are owned by a few people.

12. Migration:
Rural people are forced to migrate from villages to urban areas in order to seek gainful employment for their livelihood.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 39.
Discuss the problems of the Rural Economy?
Answer:
The problems of the rural economy are.
1. People related problems: The problem consists of illiteracy, lack of technical know-how, low level of confidence, dependence on sentiments and beliefs, etc.

2. Agriculture related problems: This include lack of awareness, knowledge, skill, and attitude, unavailability of inputs, poor marketing facility, an insufficient extension of staff and services, small size of landholding, absence of infrastructure, primitive technology, reduced public investment, and absence of a role for farmers in fixing the prices for their own products.

3. Infrastructural-related problems: Poor infrastructure facilities like water, electricity, transport, educational institutions communication, health, employment are found in rural areas.

4. Economics related problems: Inability to adopt high-cost technology, high cost of inputs, underprivileged rural industries, low income, indebtedness, and existence of inequality in landholdings and assets.

5. Leadership related problems: Leadership among the hands of inactive and incompetent people, the self-interest of leaders, biased political will, less bargaining power, and negotiation skills, and dominance of political leaders.

6. Administrative problems: Political interference, lack of motivation and interest, low wages in villages, improper utilization of budget, and absence of monitoring and implementation of the rural development programme.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 40.
Analyze the causes for Rural Indebtedness?
Answer:
The Causes for Rural Indebtedness:
1. Poverty of Farmers:

  • The vicious circle of poverty forces the farmers to borrow for consumption and cultivation.
  • Thus poverty, debt, and high rates of interest hold the farmer in the grip of money lenders.

2. Failure of Monsoon:

  • Frequent failure of monsoon is a curse to the farmers and they have to suffer due to the failure of nature.
  • Farmers find it difficult to identify good years to repay their debts.

3. Litigation:

  • Due to land disputes litigation in the court compels them to borrow heavily.
  • Being uneducated and ignorant they are caught in the litigation process and dry away their savings and resources.

4. Money Lenders and High Rate of Interest:

  • The rate of interest charged by the local money lenders is very high and the compounding of interest leads to perpetuating indebtedness of the farmer.

Samacheer Kalvi 11th Economics Rural Economy in India Additional Important Questions and Answers

PART – A

Multiple Choice Questions:

Question 1.
Educated and skilled persons who may not accept casual work. This is called unemployment ………………………
(a) Closed
(b) Open
(c) Both
(d) None of the above
Answer:
(b) Open

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 2.
The existence of a joint family system in India promotes ……………………….. unemployment.
(a) Open
(b) Weekly status
(c) Daily status
(d) Disguised
Answer:
(b) Weekly status

Question 3.
………………………… based poverty lines are used in many countries.
(a) Food
(b) Income
(c) Nutrition
(d) None of the above.
Answer:
(c) Nutrition

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 4.
IRDP means
(a) Internal Rural Development Programme
(b) Indian Rural Development Programme
(c) International Rural Development Programme
(d) Integrated Rural Development Programme
Answer:
(d) Integrated Rural Development Programme

Question 5.
The problem of rural unemployment can be solved only by …………………….. agriculture.
(a) Cost production
(b) Green Revolution
(c) Innovative
(d) Modernising
Answer:
(d) Modernising

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 6.
In which year the Rural Landless Employment Guarantee Programme was set up?
(a) 1982
(b) 1983
(c) 1984
(d) 1985
Answer:
(b) 1983

Question 7.
…………………….. legislation has been passed by the State governments, which aim at improving the economic conditions of agricultural landless labourers.
(a) Green Revolution
(b) Ceiling of landholding
(c) Land Reforms
(d) Zamindari System
Answer:
(c) Land Reforms

Question 8.
Agriculture in India offers ………………………. employment.
(a) Seasonal
(b) Under
(c) Sub
(d) Partly
Answer:
(a) Seasonal

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 9.
The farmers are poor for long then we call it ………………………. poverty.
(a) Urban
(b) Rural
(c) Primary
(d) Chronic (or) Structural
Answer:
(d) Chronic (or) Structural

Question 10.
……………………….. poverty means people work for few months and get low wages.
(a) Urban
(b) Rural
(c) Primary
(d) None of the above
Answer:
(b) Rural

PART – B

Answer the following questions in one or two sentences.

Question 1.
Define “Migration”?
Answer:

  1. Rural people are forced to migrate from villages to urban areas in order to seek gainful employment for their livelihood.
  2. This character of the development gives rise to the formation of cities.
  3. Enmity and lack of basic amenities in rural areas also push the people to migrate to urban areas.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 2.
What do you mean by features of Rural Indebtedness?
Answer:

  1. Nearly three fourth of rural families in the country is in debt.
  2. The amount of debt is heavier in the case of small farmers.
  3. Cultivators are more indebted than the non-cultivators.
  4. Most of the debts taken are short term and of unproductive nature.
  5. The proportion of debts having higher rates of interest is relatively high.
  6. Most of the villagers are indebted to private agencies particularly money lenders.

Question 3.
Mention the major advantages of Micro Finance?
Answer:
Microfinance offers loans, savings, and insurance to entrepreneurs and small business owners. Who does not have access to traditional sources of capital, like banks or investors?

PART – C

Answer the following questions in about a paragraph.

Question 1.
Mention the causes for Rural Poverty?
Answer:
Causes for Rural Poverty:

  • Unequal distribution of Land: The distribution of land is highly skewed in rural areas. Therefore, the majority of rural people work as hired labour to support their families.
  • Lack of Non-farm employment: Non-farm employment opportunities do not match the increasing labour force. The excess supply of labour in rural areas reduces the wages and increases the incidence of poverty.
  • Lack of public sector Investment: The root cause of rural poverty in our country is the lack of public sector investment in human resource development.
  • Inflation: Steady increase in prices affects the purchasing power of the rural poor leading to rural poverty.
  • Low productivity: Low productivity of rural labour and farm activities is a cause as well as the effect of poverty.
  • Unequal Benefit of Growth: Major gains of economic development are enjoyed by the urban rich people leading to a concentration of wealth. Due to defective economic structure and policies, gains of growth are not reaching the poor and the contributions of poor people are not accounted for properly.
  • Low Rate of Economic Growth: The fate of the growth of India is always below the target and it has benefited the rich. The poor are always denied the benefits of the achieved growth and development of the country.
  • More Emphasis on Large Industries: Huge investment in large industries catering to the needs of middle and upper classes in urban areas are made in India. Such industries are capital-intensive and do not generate more employment opportunities. Therefore, the poor are not in a position to get employed and to come out of poverty in villages.
  • Social evils: Social evils prevalent in the society like custom, believes, etc. increase unproductive expenditure.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 2.
Explain the causes for Rural Unemployment?
Answer:
Causes for Rural Unemployment:

  • Absence of skill development and employment generation: Lack of Government initiatives to give required training and then to generate employment opportunities.
  • Seasonal Nature of Agriculture: Agricultural operations are seasonal in nature and depend much on nature and rainfall. Therefore, the demand for labour becomes negligible during the offseason. So, non-farm employment opportunities must be created.
  • Lack of subsidiary occupation: Rural people are not able to start subsidiary occupations such as poultry, rope making, piggery, etc. Due to shortages of funds for investment and lack of proper marketing arrangements.
  • Mechanization of Agriculture: The landlords are the principal source of employment to the farm labour. Mechanization of agricultural operations like ploughing, irrigation, harvesting, threshing, etc. reduces employment opportunities for farm labour.
  • Capital-Intensive Technology: The expanding private industrial sector is largely found in urban areas and not creating additional employment opportunities due to the application of capital intensive technologies. The government must establish firms to absorb surplus labor-power.
  • Defective System of Education: The present system of education has also aggravated the rural unemployment problem. A large number of degree-producing institutions have come in recent years. Students also want to get degrees only, not any skill. Degrees should be awarded only on the basis of skills acquired. The unemployed youth should get sufficient facilities to update their skills.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 3.
Mention the Important characteristics of cottage Industries?
Answer:
Characteristics of Cottage Industries:

  1. These Industries are carried out by artisans in their own homes at their own risk and for their own benefits.
  2. Artisans may combine this work with another regular job.
  3. Little outside labour is employed. Normally, the members of the household provide the necessary labour.
  4. These industries are generally hereditary and traditional in character.
  5. Little power is used.
  6. These industries usually serve the local market and generally work on the orders placed by other Industries.
  7. The principal cottage industries of India are hand-loom weaving (cotton, silk, jute, etc.) pottery, washing soap making, conch shell, handmade paper, horn button, mother-of-pearl button, cutlery, lock and key making industries.

PART – D

Answer for each question in about a page.

Question 1.
Discuss the requirements for Rural Industries?
Answer:
Requirements for Rural Development:
Rural industries embrace all industries which are run by rural people in rural areas. These industries are based primarily on the utilization of locally available raw materials, skills, and a small amount of capital. The rural industries can be broadly classified into a) cottage industries, b) village industries, c) small industries, d) tiny industries and e) agro-based industries.

Cottage Industries:

  1. Cottage industries are generally associated with agriculture and provide both part-time and full-time jobs in rural areas.
  2. Little outside labour is employed. Normally, the members of the household provide the necessary labour.
  3. These industries are generally hereditary and traditional in character.
  4. Little power is used.
  5. These industries usually serve the local market and generally work on the orders placed by other industries.
  6. Examples of cottage industries are mat, coir and basket making industries. The principal cottage industries of India are hand-loom weaving (cotton, silk, jute, etc.) pottery, washing soap making, conch shell, handmade paper, horn button, mother-of-pearl button, cutlery, lock and key making industries.

Village Industries:
1. Village industries are traditional in nature and depend on local raw-material. They cater to the needs of the local population. Examples of village industries are gur and khandsari, cane and bamboo baskets, shoemaking, pottery, and leather tanning. These are almost similar to the cottage industries.

2. Small Scale Industries (SSIs):
Most small scale industries are located near urban centers. They produce goods for local as well as foreign markets. Examples of such small-scale industries are the manufacture of sports goods, soaps, electric fans, footwear, sewing machines and handloom weaving.

SSIs are also known as Micro, Small & Medium Enterprises (MSMEs). They are defined and categorized by the Micro, Small & Medium Enterprises Development Act, 2006. The Act categorizes different scale of industries on the basis of investment in plant and machinery in case of manufacturing industries and on the basis of investment in equipment in case of service sector industries.

3. Agro-based Industries:
These industries are based on the processing of agricultural produce. Agro-based industries may be organized on a cottage-scale, small-scale, and large-scale. These industries tend to develop household settlements around them as they employ more labour on a regular basis. Examples are textile, sugar, paper, vegetable oil, tea, and coffee industries.

Samacheer Kalvi 11th Economics Guide Chapter 10 Rural Economy

Question 2.
Mention the Rural Roads and Rural Market?
Answer:

  1. Road Market refers to the infrastructure created to buy and sell the products produced in rural areas and also to purchase the needed products and farm inputs produced in urban and other regions.
  2. Rural marketing is still defective as farmers lack bargaining power, a long chain of middlemen, lack of organization, insufficient storage facilities, poor transport facilities, absence of grading, inadequate information, and poor marketing arrangements.
  3. Road transport is an important constituent of the transport system.
  4. Rural Roads constitute the very lifeline of the rural economy.
  5. A well-constructed road network in rural areas would bring several benefits including the linking of remote villages with urban centers, reduction in the cost of transportation of agricultural inputs, and promotion of marketing for rural produces.
  6. It helps the farmers to bring their produce to the urban markets and to have access to distant markets and other services.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Students can Download Tamil Nadu 11th Commerce Model Question Paper 4 English Medium Pdf, Tamil Nadu 11th Commerce Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 11th Commerce Model Question Paper 4 English Medium

General Instructions:

  1. The question paper comprises of four parts.
  2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
  3. All questions of Part I, II, III and IV are to be attempted separately.
  4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each.
    These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer
  5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about one or two sentences.
  6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in above three to five short sentences.
  7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 2:30 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions. [20 × 1 = 20]

Question 1.
……………………….. is a special type of bond issued in the currency other than the home currency.
(a) Government bond
(b) Foreign currency convertible bond
(c) Corporate bond
(d) Investment bond
Answer:
(b) Foreign currency convertible bond

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 2.
……………………. acts as connective link between the producer and the consumer.
(a) Trade
(b) Industry
(c) Commerce
(d) Business
Answer:
(a) Trade

Question 3.
From the following which is not a recent trend in transportation?
(a) Metro rail
(b) Pipeline transport
(c) Bullock carts
(d) Ropeway transport
Answer:
(c) Bullock carts

Question 4.
Minimum how much amount can be transferred through RTGS?
(a) Any amount
(b) Rs 50,000
(c) Rs 2 lakhs
(d) Rs 5 Lakhs
Answer:
(c) Rs 2 lakhs

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 5.
Goods are imported for the purpose of exporting to another country is termed as ……………………….
(a) Import trade
(b) Export trade
(c) Entrepot trade
(d) Internal trade
Answer:
(c) Entrepot trade

Question 6.
Agriculture income earned in india is ………………………..
(a) Fully taxable
(b) Fully exempted
(c) Not considered for income
(d) None of the above
Answer:
(b) Fully exempted

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 7.
An …………………………. is a document prepared by the importer and sent to the exporter to buy the goods.
(a) Invoice
(b) Indent
(c) Enquiry
(d) Charter party
Answer:
(b) Indent

Question 8.
Which of the parties cannot demand performance of promise?
(a) Promisee
(b) Any of the joint promisees
(c) Death of a promisee, his legal representative
(d) Stranger to the contract
Answer:
(d) Stranger to the contract

Question 9.
The income paid to the (mercantile agent), broker is ………………………..
(a) Profit
(b) Brokerage
(c) Commission
(d) Salary
Answer:
(b) Brokerage

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 10.
Ethics is important for ……………………….
(a) Top management
(b) Middle – level management
(c) Non – managerial employees
(d) All of them
Answer:
(d) All of them

Question 11.
……………………. is the oldest form of transport found in hilly areas, forest areas in remote places.
(a) Bullock carts
(b) Road transport
(c) Motor lorries
(d) Pathways transport
Answer:
(d) Pathways transport

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 12.
The document which invites the public to buy the shares and debentures is known as …………………………
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) Partnership articles
Answer:
(c) Prospectus

Question 13.
Which one of the following is not correctly matched?
(a) Minimum two members – Partnership firm
(b) Minimum paid up capital Rs 100000 – Private company
(c) Voluntary Membership – Co – operatives
(d) 51% of paid up capital – Foreign company
Answer:
(d) 51% of paid up capital – Foreign company

Question 14.
ABC jointly promised to pay Rs. 50000 to D. Before performance of the contract, ‘C’ dies. Here the contract ………………………
(a) Becomes void on C’s death.
(b) Should be performed by A and B along with C’s legal representative.
(c) Should be performed by A and B alone.
(d) Should be renewed between A, B and D.
Answer:
(b) Should be performed by A and B along with C’s legal representative.

Question 15.
Airport Authority of India, is a public enterprise. Identify the form of organisation.
(a) Statutory corporations
(b) Departmental undertakings
(c) Multi – national corporations
(d) State – owned company
Answer:
(b) Departmental undertakings

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 16.
Debenture holders are entitled to a fixed rate of ………………………
(a) Dividend
(b) Profits
(c) Interest
(d) Ratio
Answer:
(c) Interest

Question 17.
The State Bank of India came into being in ………………………
(a) 1995
(b) 1945
(c) 1955
(d) 1965
Answer:
(c) 1955

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 18.
Match List – I with List – II and select the correct answer using the codes given below:

List – I

List – II

(i) Assembling industry 1. Sugar
(ii) Processing industry 2. Computer
(iii) Analytical industry 3. Fishery
(iv) Genetic industry 4. Oil industry

Answer:
Codes:

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium img 1

Question 19.
An ……………………… is a document prepared by the importer and sent to the exporter to buy the goods.
(a) Invoice
(b) Indent
(c) Enquiry
(d) Charter party
Answer:
(b) Indent

Question 20.
Point out the wrong statement from the following.
(a) Extractive industries extract products from natural resources.
(b) Genetic industries are engaged in breeding plants and animals for their use in further reproduction
(c) Manufacturing industries are engaged in producing goods through processing of raw material.
(d) Construction industries are involved in the successive stages for manufacturing sugar and paper, etc.
Answer:
(d) Construction industries are involved in the successive stages for manufacturing sugar and paper, etc.

PART – II

Answer any seven questions in which question No. 30 is compulsory. [7 × 2 = 14]

Question 21.
It is the oldest form of organisation in public enterprises. It is run by the particular department. What is the name of the organisation? How is it controlled?
Answer:
Departmental form of organisation of managing state enterprises is the oldest form of organisation. Under departmental form of organisation, a public enterprise is run as a separate full – fledged ministry or as a major sub-division of a department of the Government.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 22.
Banks which do not provide regular service, and are controlled by stock exchange, What is the name of the bank? Write a short note about the bank?
Answer:
The name of the bank is Merchant bank. A commercial bank or its subsidiary may offer services like project counselling, underwriting etc for starting a company. It is called merchant banking.

Question 23.
What is meant by chartered company?
Answer:
Chartered companies are established by the King or Queen of a country. Powers and privilege of chartered company are specified in the charter. Power to cancel the charter is vested with King/Queen.

Question 24.
Some co – operative societies are formed for providing short term finance to the members. It is useful to the farmers especially. What is the name of the society?
Answer:
Cooperative credit societies are societies formed for providing short-term financial help to their members. Agriculturists, artisans, industrial workers, salaried employees, etc., form these credit societies.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 25.
Give any two functions of warehouses?
Answer:

  1. Storage
  2. Price stabilization
  3. Equalization of demand and supply

Question 26.
Define the term‘factoring’?
Answer:
The term ‘factoring’ is derived from a Latin term ‘facere’ which means ‘to make or do’. Factoring is an arrangement wherein the trade debts of a company are sold to a financial institution at a discount.

Question 27.
State the meaning of Mail order business?
Answer:
Mail order business means that the buying and selling is through mail. There is no personal contact between the buyers and sellers in this type of trading.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 28.
Explain the term – Credit card?
Answer:
Banks issue credit cards to customers and other eligible persons. With this card, the holder can purchase goods and services on credit at any shop in India.

Question 29.
What is meant by consumer co-operatives?
Answer:
Consumer co – operatives are organised by consumers. The aim of the consumers co-operative is to supply the quality goods at fair prices. They also supply essential commodities through Public Distribution System (PDS).

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 30.
What is mutual funds?
Answer:
An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
What are the advantages of company? Explain any three?
Answer:
1. Large Capital:
A company can secure large capital compared to a sole trader or partnership. Large amount of capital is necessary for conducting business on a large scale.

2. Limited Liability:
The liability of a shareholder is limited. The risk of loss is limited to the unpaid amount on the face value of shares held. In the case of a company limited by shares, the liability of a shareholder is restricted to the unpaid amount on the shares held by him.

3. Transferability of Shares:
Transaction of Shares between two individuals is easy. So there is liquidity of investment. Any shareholder can easily convert his shares into money by selling his shares.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 32.
What is the necessity for Entrepot trade?
Answer:
Entrepot is necessary because of the following reasons:

  1. The country may not have any accessible trade routes connecting the importing country.
  2. The goods imported may require further processing or finishing before exporting, and these facilities may be lacking in the exporting or importing country.
  3. There may not have any bilateral trade agreement between both the countries.

Question 33.
This is a loan taken by depositing document of title to the property with the banker. What is the name of the loan? Also how the banker grants the loan to the customers?
Answer:
The name of the loan is ‘hypothecation’. In this type of loan, the customer has to deposit the document of title to the property with the banker. But the physical possession of the property is with the borrower. If the loan is not paid, the lender will sell the property and can receive the loan amount.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 34.
What are the objectives of GST?
Answer:

  1. To create a common market with uniform tax rate in India. (One Nation, One Tax, One Market)
  2. To eliminate the cascading effect of taxes, GST allows set – off of prior taxes for the same transactions as input tax credit.
  3. To boost Indian exports, the GST already collected on the inputs will be refunded and thus there will be no tax on all exports.
  4. To increase the tax base by bringing more number of tax payers and increase tax revenue.
  5. To simplify tax return procedures through common forms and avoidance of visiting tax departments.
  6. To provide online facilities for payment of taxes and submission of forms.

Question 35.
Cargo vessels which do not follow set routes and timetable?
What is the kind and name of the transport?
Answer:
The name of the transport is Tramps. They are a kind of ocean going ships. They are essentially cargo vessels. They have no set routes. They do not follow any timetable. They sail only when they get sufficient load.

Question 36.
What is Gross Total Income?
Answer:
Income from the five heads, namely – Salaries, House Property, Profits and Gains of Business or Profession, Capital Gains, and Other Sources – is computed separately according to the provisions given in the Act. Income computed under these heads shall be aggregated after adjusting past and present losses and the total so arrived at is known as ‘Gross Total Income’.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 37.
The retailers having permanent establishment and deal in large scale are called fixed shop large scale retailers. There are various types of large scale retailers. What is telemarketing? Explain the types?
Answer:
Purchasing and selling of goods through telephones are called Telemarketing. It is divided into two types.

1. Telephonic marketing:
Potential customers are contacted through mobile to provide information about the products. Willing customers visit the office and place orders.

2. Television marketing:
In this method, customers are attracted by providing all information of product or service through TV demonstrations. Customers can contact through phone or website to place order.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 38.
Distinguish between hire purchase system and installment system of selling?
Answer:

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 39.
Explain any three features of Self Help Groups?
Answer:
Self Help Group is a small informal voluntary association created for the purpose of enabling members to reap economic benefit out of mutual help, solidarity, and joint responsibility. Features of Self Help Groups:

  1. The motto of every group members should be “saving first – credit latter”.
  2. Self Help Group is homogeneous in terms of economic status.
  3. The groups need not be registered.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 40.
What are the objectives of GST?
Answer:

  1. To create a common market with uniform tax rate in India. (One Nation, One Tax, One Market)
  2. To eliminate the cascading effect of taxes, GST allows set-off of prior taxes for the same transactions as input tax credit.
  3. To boost Indian exports, the GST already collected on the inputs will be refunded and thus there will be no tax on all exports.
  4. To increase the tax base by bringing more number of tax payers and increase tax revenue.
  5. To simplify tax return procedures through common forms and avoidance of visiting tax departments.
  6. To provide online facilities for payment of taxes and submission of forms.

PART – IV

Answer all the questions. [7 × 5 = 35]

Question 41 (a).
Write short notes on:

  1. Owner’s funds
  2. Borrowed funds

Answer:
1. Owner’s Funds:
Owner’s funds mean funds which are provided by the owner of the enterprises who may be an individual, or partners or shareholders of a company.

The profits reinvested in the business (ploughing back of profit or retained earnings) come under owner’s funds. These funds are not required to be refunded during the life time of business enterprise. It provides the owner the right to control the management of the enterprise.

2. Borrowed Funds:
The term ‘borrowed funds’ denotes the funds raised through loans or borrowings. For example debentures, loans from banks and financial institutions, public deposits, trade credit, lease financing, commercial papers, factoring, etc., represent borrowed funds.

  1. These borrowed sources of funds provide specific period before which the fund is to be returned.
  2. Borrower is under legal obligation to pay interest at given rate at regular intervals to the lender.
  3. Generally borrowed funds are obtained on the security of certain assets like bonds, land, building, stock, vehicles, machinery, documents of title to the goods, and the like.

[OR]

(b) What are the advantages of sole trading?
Answer:

  1. Easy Formation: No legal formalities are required to initiate a sole trading concern. Any person capable of entering into a contract can start it, provided he has the necessary resources for it.
  2. Incentive to Work hard: There is a direct relationship between effort and reward. The fact that the entire profit can be taken by himself without sharing with anybody else induces him to work ceaselessly.
  3. Small Capital: Small capital is an important as well as specific advantage of sole proprietorship. Sole proprietor can start business with small capital.
  4. Credit Standing: Since his private properties are held liable for satisfying business debts, he can get more financial assistance from others.
  5. Personal Contact with the Customers: Since sole proprietor knows each and every customer individually he can supply goods according to their taste and preferences. Thus he can cultivate personal relationship with the customers.
  6. Flexibility: The sole trader can easily adjust himself to the changing requirements of his business.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 42 (a).
Explain the contents of Articles of Association?
Answer:
Contents of Articles of Association (AOA):

  1. Amount of shares, capital, value and type of shares.
  2. Rights of each class of shareholders regarding voting, dividend, return of capital
  3. Rules regarding issue of shares and debentures
  4. Procedures as well as regulations in respect of making calls on shares
  5. Manner of transfer of shares
  6. Declaration of dividends
  7. Borrowing powers of the company
  8. Rules regarding the appointment, remuneration, removal of directors
  9. Procedure for conducting proxy, quorum, meetings, etc.
  10. Procedures concerning keeping of books and audits
  11. Seal of the company
  12. Procedures regarding the winding up of the company.

[OR]

(b) What are the primary functions of commercial banks?
Answer:
The primary functions of a commercial bank are of three types. They are:

1. Accepting Deposits:
The basic deposit accounts offered by commercial banks are listed below:

A. Demand Deposits:
These deposits are repayable on demand on any day. These consist of –

  • Savings Deposits: General public deposit their savings into this account. This account can be opened in one individual’s name or more than one name.
  • Current Deposits: This account is suitable for business institutions. Individuals too can open this account. A higher minimum balance should be kept in this account.

B. Time Deposits:
These are repayable after a period. These include –

  • Fixed Deposits (FD): Certain amount is deposited for a fixed period for a fixed rate of interest.
  • Recurring Deposits (RD): Certain sum is deposited into the account every month for one year or five years or the agreed period. Interest rate is more than savings deposits and almost equal to fixed deposits.

2. Granting Loans and Advances:
Commercial banks lend money in order to earn interest.

A. Advances:

  • Overdraft: It is a credit facility extended mostly to current account holding business community customers.
  • Cash Credit: It is a secured credit facility given mostly to business institutions. Stock in hand, raw materials, other tangible assets, etc. are provided as collateral.
  • Discounting of Bills: Business customers approach banks to discount the commercial bills of exchanges and provide money

B. Loans- Short term and medium term loans are provided by commercial banks against eligible collaterals to business concerns. Examples- housing loan, consumer loan, vehicle loan, educational Loan, jewel loan, etc.

3. Creation of Credit- Apart from the currency money issued by the RBI, the credit money in circulation created by commercial banks influence economic activities of a country to a large extent. Credit money of commercial banks is far greater in volume than the currency money.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 43 (a).
What are the disadvantages of MNC?
Answer:

  1. Danger for Domestic Industries: MNCs, because of their vast economic power, pose a danger to domestic industries; which are still in the process of development. Domestic industries cannot face challenges posed by MNCs.
  2. Transfer of Outdated Technology: Where MNCs transfer outdated technology to host nation, it serves no purpose.
  3. No Benefit to Poor People: MNCs produce only those things, which are used by the rich. Therefore, poor people of host countries do not get, generally, any benefit, out of MNCs.
  4. Danger to Independence: Initially MNCs help the Government of the host country, in a number of ways; and then gradually start interfering in the political affairs of the host country.
  5. Deprivation of Job Opportunity of Local People: MNCs may not generate job opportunities to the people of home country.

[OR]

(b) Explain the organisational structure of RBI?
Answer:
The head office of the RBI is situated in Mumbai. This central office has 33 departments in 2017. It has four zonal offices in Mumbai, Delhi, Calcutta and Chennai functioning under local boards with deputy governors as their heads. It also has 19 regional offices and 11 sub-offices (2017).

The RBI is governed by a central board of directors. The 21 member board is appointed by the Government of India. It consists of:

  1. One Governor and four deputy governors appointed for a period of four years,
  2. Ten Directors from various fields
  3. Two Government officials
  4. Four Directors – one each from local boards.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 44 (a).
Distinguish between internal and international trade?
Answer:

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

[OR]

(b) State the features of departmental stores?
Answer:

  1. Large Size: A department is a large scale retail showroom requiring a large capital investment by forming a joint stock company managed by a board of directors.
  2. Wide Choice: It acts as a universal provider of a wide range of products from low priced to very expensive goods (Pin to Car) to satisfy all the expected human needs under one roof.
  3. Departmentally organized: Goods offered for sale are classified into various departments.
  4. Facilities provided: It provides a number of facilities and services to the customers such as restaurant, rest rooms, recreation, packing, free home delivery, parking, etc.
  5. Centralised purchasing: All the purchases are made centrally and directly from the manufacturers and operate separate warehouses whereas sales are decentralised in different departments.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 45 (a).
What are the different types of transportation? Explain?
Answer:
Types of transportation:

(A) Land Transport:
Transport of people and goods by land vehicles is known as Land transport. It is also called as‘Surface Transport’.

  • Pack Animals: Animals like horse, mule, donkey, camel, elephant etc., are used for carrying small loads in backward areas, hilly tracks, forest regions and deserts.
  • Bullock Carts: It constitutes the predominant form of rural road transport in India for goods traffic and to some extent for passengers’ traffic.
  • Road Transport: It is one of the most promising and potent means suitable for short and medium distances.
  • Motor lorries and Buses: From the dawn of civilization, people have been endeavoring to form roads and use wheeled vehicles to facilitate transport of men and materials.
  • Tramways: Tramways were initially horse drawn, later stearmpowered and now they are electrically operated.
  • Railway Transport: The invention of steam engine by James Watt, revolutionized the mode of transport all over the world.
  • Recent Trends in Transport: Metro Rail, Monorail, Bullet train, Pipeline Transport, Conveyor Transport, Ropeway transport and Hyper loop transport.

(B) Water Transport:

  1. Inland Waterways: Inland Waterways comprise of rivers, canals and lakes. It is also known as internal water transport.
  2. Ocean or Sea Transport: Ocean transport has been playing a significant role in development of economic, social and cultural relations among countries of the world.
  • Coastal shipping
  • Overseas shipping:
  • Liner
  • Tramps

(C) Air Transport:
Air transport is the fastest and the costliest mode of transport. Commercial air transport is now one of the most prominent modes of overseas transport. Domestic and International flights are the air travels.

[OR]

(b) Explain the principles of insurance?
Answer:
1. Utmost Good Faith:
According to this principle, both insurer and insured should enter into contract in good faith. Insured should provide all the information that impacts the subject matter. Insurer should provide all the details regarding insurance contract.

2. Insurable Interest:
The insured must have an insurable interest in the subject matter of insurance. Insurable interest means some pecuniary interest in the subject matter of the insurance contract.

3. Indemnity:
Indemnity means security or compensation against loss or damages. In insurance, the insured would be compensated with the amount equivalent to the actual loss and not the amount exceeding the loss.

This principle ensures that the insured does not make any profit out of the insurance. This principle of indemnity is applicable to property insurance alone.

4. Causa Proxima:
The word ‘Causa proxima’ means ‘nearest cause’. According to this principle, when the loss is the result of two or more cause, the proximate cause, i.e. the direct. The direct, the most dominant and most effective cause of loss should be taken into consideration. The insurance company is not liable for the remote cause.

5. Contribution:
The same subject matter may be insured with more than one insurer then it is known as ‘Double Insurance’. In such a case, the insurance claim to be paid to the insured must be shared on contributed by all insurers in proportion to the sum assured by each one of them.

6. Subrogation:
Subrogation means ‘stepping the shoes on others’. According to this principle, once the claim of the insured has been settled, the ownership right of the subject matter of insurance passes on to the insurer.

7. Mitigation: In case of a mishap, the insured must take off all possible steps to reduce or mitigate the loss or damage to the subject matter of insurance.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 46 (a).
Elucidate any five features of Income Tax?
Answer:
Features of Income Tax in India:
1. Levied as Per the Constitution Income tax is levied in India by virtue of entry No. 82 of list I (Union List) of Seventh Schedule to the Article 246 of the Constitution of India.

2. Levied by Central Government Income tax is charged by the Central Government on all incomes other than agricultural income. However, the power to charge income tax on agricultural income has been vested with the State Government as per entry 46 of list II, i.e., State List.

3. Direct Tax Income tax is direct tax. It is because the liability to deposit and ultimate burden are on same person. The person earning income is liable to pay income tax out of his own pocket and cannot pass on the burden of tax to another person.

4. Annual Tax Income tax is an annual tax because it is the income of a particular year which is chargeable to tax.

5. Tax on Person It is a tax on income earned by a person. The term ‘person’ has been defined under the Income tax Act. It includes individual, Hindu Undivided Family, Firm, Company, local authority, Association of person or body of Individual or any other artificial juridical persons. The persons who are covered under Income tax Act are called ‘assessees’.

[OR]

(b) Write down the functions of IMF?
Answer:

  1. It acts as short term credit institution at the international level.
  2. It provides machinery for ordinary adjustments of exchange rates.
  3. It has a reservoir of currencies of the member countries from which a borrower can borrow currencies of other nations.
  4. It promotes economic stability and global growth by encouraging countries adopt sound economic and financial policies.
  5. It offers technical assistance and training to help member countries strengthen and implement effective policies. Technical assistance is offered in formulating banking, fiscal, monetary and exchange policies.
  6. It helps member countries correct their imbalance in balance of payment.

Tamil Nadu 11th Commerce Model Question Paper 4 English Medium

Question 47 (a).
Describe the importance of international finance?
Answer:

  1. International finance helps in calculating exchange rates of various currencies of nations and the relative worth of each and every nation in terms thereof.
  2. It helps in comparing the inflation rates and getting an idea about investing in international debt securities.
  3. It helps in ascertaining the economic status of the various countries and in judging the foreign market.
  4. International Financial Reporting System (IFRS) facilitates comparison of financial statements made by various countries.
  5. It helps in understanding the basics of international organisations and maintaining the balance among them.

[OR]

(b) What are the advantages of Railway transport?
Answer:

  1. Railways are well suited for carrying heavy and bulky goods over long distances.
  2. It provides long distance travel throughout the day and night service.
  3. It can provide better production and safety to the goods than motor transport.
  4. Though initial investment is large, in the long run the operating expenses will be very low in railways and it will prove a cheaper mode of transport.
  5. It has regular schedule of timing and is available throughout the year.
  6. It provides unaffected services whether rainy or sunny weather conditions.

Tamil Nadu 11th English Model Question Paper 5

Students can Download Tamil Nadu 11th English Model Question Paper 5 Pdf, Tamil Nadu 11th English Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 11th English Model Question Paper 5

General Instructions:

  1. The question paper comprises of four parts.
  2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
  3. All questions of Part I, II, III and IV are to be attempted separately.
  4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each.
    These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer
  5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about one or two sentences.
  6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in above three to five short sentences.
  7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3:00 Hours
Maximum Marks: 90

PART – I

I. Answer all the questions. [20 × 1 = 20]
Choose the correct synonyms for the underlined words from the options given.

Question 1.
The place was a bedlam for birds.
(a) pandemonium
(b) peace
(c) serenity
(d) transition
Answer:
(a) pandemonium

Question 2.
He enlightened them with bon-mots.
(a) repartee
(b) wit
(c) challenges
(d) goodies
Answer:
(b) wit

Tamil Nadu 11th English Model Question Paper 5

Question 3.
Words of praise and adulation were showered on the debut artist.
(a) blasphemy
(b) condemnation
(c) aversion
(d) exaltation
Answer:
(d) exaltation

Choose the correct antonyms for the underlined words from the options given.

Question 4.
The princely sum was a stumbling block for her career.
(a) generous
(b) substantial
(c) prime
(d) meagre
Answer:
(d) meagre

Question 5.
Retaining my world cup was one of my greatest achievements.
(a) holding
(b) rescuing
(c) losing
(d) reviving
Answer:
(c) losing

Question 6.
I was so relieved to get my transfer order.
(a) delighted
(b) worried
(c) pleased
(d) comforted
Answer:
(b) worried

Question 7.
Choose the blended form of, “telecast”.
(a) television + broad cast
(b) television + cast
(c) tele + broad cast
(d) tele + cast
Answer:
(a) television + broad cast

Question 8.
Choose the right definition for the given term “choreography”.
(a) The art of designing steps in ballet or another staged dance, or the written steps for such movements
(b) The process of giving some of your work, duties, or responsibilities to a less senior person or a less powerful person
(c) A student of bees
(d) One who accumulates; one who collects
Answer:
(a) The art of designing steps in ballet or another staged dance, or the written steps for such movements

Question 9.
Choose the meaning of the idiom ‘At the drop of a hat’.
(a) To hear rumours about someone
(b) Do or say something exactly right
(c) To go to bed
(d) Without any hesitation; instantly
Answer:
(d) Without any hesitation; instantly

Tamil Nadu 11th English Model Question Paper 5

Question 10.
Choose the meaning of the foreign word in the sentence.
Leo was disappointed, but his losing the election for class president was a fait accompli.
(a) faithful friend
(b) established fact
(c) accomplished scholar
(d) standard issue
Answer:
(b) established fact

Question 11.
Choose the word from the options given to form a compound word with “child”.
(a) person
(b) hood
(c) bed
(d) call
Answer:
(b) hood

Question 12.
Form a new word by adding a suitable prefix to the root word “taken”.
(a) un
(b) mis
(c) dis
(d) en
Answer:
(b) mis

Question 13.
Choose the expanded form of “IIM”.
(a) Indian Institute of Minorities
(b) Indian Institute of Managers
(c) Indian Institute of Marine
(d) Indian Institute of Management
Answer:
(d) Indian Institute of Management

Question 14.
Choose the correct sentence pattern.
He loves his profession.
(a) SVO
(b) SVOC
(c) SVOA
(d) SVC
Answer:
(a) SVO

Question 15.
A collection of selected literary passages is known as ………….
(a) Phenomenology
(b) Anthology
(c) Phrenology
(d) Homology
Answer:
(b) Anthology

Question 16.
Fill in the blank with the suitable preposition.
Many people travel to Kerala to work ………… small companies.
(a) in
(b) under
(c) on
(d) with
Answer:
(a) in

Question 17.
Add a suitable question tag to the following statement.
Priyanka dances well,………?
(a) isn’t she
(b) doesn’t she
(c) won’t she
(d) will she
Answer:
(b) doesn’t she

Tamil Nadu 11th English Model Question Paper 5

Question 18.
Substitute the underlined word with the appropriate polite alternative.
The shoes looked like they had been stolen.
(a) theft
(b) lost
(c) damaged
(d) had fallen off the back of a truck
Answer:
(d) had fallen off the back of a truck

Question 19.
Substitute the phrasal verb in the sentence with a single word.
Your statement will not stand up as proof in the court of law.
(a) oppose
(b) accept
(c) deny
(d) support
Answer:
(d) support

Question 20.
Fill in the blank with a suitable relative pronoun
Tell me the name of the student ………….. you want to meet.
(a) whom
(b) which
(c) that
(d) whose
Answer:
(a) whom

PART – II

II. Answer any seven of the following: [7 × 2 = 14]
(i) Read the following sets of poetic lines and answer any four of the following. [4 × 2 = 8]

Question 21.
“I have learned to wear many faces Like dresses – home face”
(а) What has the poet learned?
(b) Mention the figure of speech employed in this line.
Answer:
(a) The poet has learned to put on appearances to conform to the changed attitude of people in modem times.
(b) Simile

Question 22.
“For he’s a fiend in feline shape, a monster of depravity.”
(a) Identify the poem and the poet.
(b) Explain the phrase ‘monster of depravity’.
Answer:
(a) The poem is ‘Macavity – The Mystery Cat’ written by T.S. Eliot.
(b) Satan is called the master of depravity. T.S. Eliot calls Macavity, the master of depravity. He means that the cat is an embodiment of evil. He is wicked and all the time involved in doing something evil.

Question 23.
“A life that knows no kneeling and bending.
We are proud and feel so tall”
(a) Who does we refer to?’
(b) What has life never experienced?
Answer:
(a) ‘We’ refers to ordinary people who live noble lives.
(b) The life of ordinary people who have not experienced kneeling or bending before the mighty. They are able to stand firm on defending the truth.

Tamil Nadu 11th English Model Question Paper 5

Question 24.
“Infusing him with self and vain conceit,
As if this flesh which walls about our life”
(a) Who has vain conceit?
(b) Explain the above lines.
Answer:
(a) The king has vain conceit.
(b) Death knows that all great kings must come to him. For a brief time death is generous and allows kings to rule and to be feared by their subjects. Death allows them to feel conceited and proud with an inflated image of ‘self’.

Question 25.
“And I must think, do all I can,
That there was pleasure there…”
(a) What did the poet notice about the twigs?
(b) What was the poet’s thought about then?
Answer:
(a) The budding twigs spread out their fan to catch the breezy air.
(b) The poet thought the twigs were experiencing the joy of their contact with the breezy air.

Question 26.
“This one the prize ring hates to enter
That one becomes a tackle or center,”’
(a) What game/sports is associated with “prize ring”?
(b) Which game is discussed in the second line?
Answer:
(a) Prize ring is associated with boxing.
(b) Football is discussed in the second line.

(ii) Do as Directed: (Answer any three) [3 × 2 = 6]

Question 27.
Report the following dialogue:
Tara: I went to Hyderabad to attend a seminar on environmental pollution.
Harsha: I am going to the library. Are you coming with me?
Answer:
Tara asked Harsha where he was going then. Harsha replied that he was going to the library and asked if I were coming with him.

Question 28.
Change into active voice of the following sentence.
Answer:
Alas! Her voice shall not be heard by his friends anymore.
Alas! His friends will not hear her voice anymore.

Question 29.
I did not know that you are going to visit us. I would have come to the airport. (Combine using ‘if’)
Answer:
If I had known that you were going to visit us, I would have come to the airport.

Question 30.
He was ill, but he came for practice. (Change into a compound sentence)
Besides being a good writer he is an outstanding lecturer.
Answer:
He is not only a good writer but also an outstanding lecturer.

Tamil Nadu 11th English Model Question Paper 5

PART – III

III. Answer any seven of the following: [7 × 3 = 21]
(i) Explain any two of the following with Reference to the Context: [2 × 3 = 6]

Question 31.
Once upon a time, son
They used to laugh with their eyes:
Answer:
Reference: These lines are from the poem, “Once upon a time” written by Gabriel Okara.

Context: The poet says these words to his son while discussing his own happy childhood days.

Explanation: The poet compares the behaviour of people in the past and those in modern . times. He tells his son that people in the past used to laugh with their eyes. There was an expression of genuine warmth among people when they laughed.

Question 32.
We deem it our duty and mission in life,
To bless and praise the deserving ones;
Answer:
Reference: These lines are from the poem “Everest is not the Only Peak” written by Kulothungan.

Context: The poet says these words highlighting the virtues of unsung heroes, who adhere to their ethical principles in life.

Explanation: They consider it their duty and mission to identify deserving people with natural talents and bless and appreciate them.

Question 33.
Let’s talk of graves, of worms, and epitaphs.
Answer:
Reference: These lines are from the poem “The Hollow Crown” by William Shakespeare. The poem is an excerpt from the play “Richard II”.

Context: King Richard II says these words while waiting for death. He is totally dejected.

Explanation: King Richard II thinks of words which could figure in the epitaph (i.e.) on his tomb stone. Being sure of death in the hands of Bolingbroke he requests his loyal courtiers to talk about death and about burial.

(ii) Answer any two of the following briefly: [2 × 3 = 6]

Question 34.
Why did Mary Kom think that she should not return empty-handed?
Answer:
Mary Korn’s dad had given all he had for her trip to USA. Besides, her friends had raised funds through MPs. They had pinned their hopes on her. So, she thought she should not return empty handed.

Tamil Nadu 11th English Model Question Paper 5

Question 35.
What made people wonder about the absentmindedness of their fellow-beings?
Answer:
The publication of articles lost by train travellers astonished many readers. Old people did not forget much. In fact, young men have forgotten bats and balls on their return from matches.

Question 36.
Enumerate the values instilled in the students by the Universities.
Answer:
Universities instill the values of robust optimism, respect for democracy and appreciation of others’ point of view. It also develops adjustment of differences through discussion; develop patience, perseverance, confidence, faith in themselves and others. They also instill confidence in their ability to shoulder responsibilities.

(iii) Answer any three of the following briefly: [3 × 3 = 9]

Question 37.
Re-arrange the shuffled words and frame into meaningful sentences, (change to pie chart/graph or table)

  1. you/where/have/this/all/while/been?
  2. this/we/visiting/Shimla/are/summer.
  3. the/all/of/art/the/of/science/questions/is/and/knowledge/asking/source/

Answer:

  1. Where have you been all this while?
  2. We are visiting Shimla this summer.
  3. The art and science of asking questions is the source of all knowledge!

Question 38.
Describe the process of Book-binding.
Answer:

  1. Firstly, the pages are carefully arranged page wise. Any folding found is removed.
  2. They are then arranged into sections and stitched.
  3. The sides of the book are cut neatly and covered with a suitable brown paper.
  4. Two card board sheets slightly bigger than the book must be pasted on both sides.
  5. A calico cloth should be pasted on the closed side of the book to hold the cardboards and be allowed to dry.

Question 39.
Expand the news headlines in a sentence each.
(a) Suman Rao selected the new Miss India.
(b) 12 Injured as Buses Collide.
(c) Indian Team on the high in T20s in England.
Answer:
(a) 20-year old Miss Rajasthan 2019, Suman Rao, was awarded the most covetous crown Miss India at the finals held at Sardar Vallabhbhai Patel Indoor Stadium, Mumbai.

(b) Due to poor visibility of street lights and negligence of the State Transport Drivers two buses collided on the narrow stretch of Nammakal district near Ambedkar statue. 12 passengers including a six month old baby boy were rushed to the nearby Government hospital for treatment.

(c) Indian Team bagged the winner’s trophy and is expected to return next Monday at the Mumbai airport.

Tamil Nadu 11th English Model Question Paper 5

Question 40.
Complete the proverbs using the words given below.
(а) The harder you ………… the luckier you get. (throw, work, try)
(b) There is no time like the ……….. (present, future, past)
(c) ……….. and tide wait for no man. (Wind, Sea, Time)
Answer:
(a) work
(b) present
(c) Time

PART – IV

IV. Answer the following: [7 × 5 = 35]

Question 41.
How does the speaker highlight the importance of giving back to the society?
Answer:
The graduates have drawn largely from the social chest. The largest taken from the society needs to be replenished. If graduates fail to pay back, ordinary people’s coffer will be empty. The supervisor’s education enjoins greater responsibility to society. Apart from their own individual advancement, society has got a right to expect an adequate return from the graduates.

The society does not expect them to payback in cash. But they must pay back in terms of service. They should tone up the society by bringing a light into the dark alleys. They should herald sunshine into dingy places. They must give solace to the affiliated people. They should also give hope unto the despondent and thus ensure a new life unto every one.

[OR]

As a narrator, make a diary entry about the tight corner you faced at Christie’s and how you were saved from the dire situation.
Answer:
Thursday, 17th Nov. 20xx
I was lunching at a club in King James’s street. While passing along Kingstreet later, my friend suggested that we peeped in at Christie’s where an auction of Barbizon pictures was going on. The pieces of the paintings were pertaining to forest scenes, pools at evening, shepherdesses, and the regular subjects were tremendous for each ranging from two to three thousand guineas each. The remarkable thing was that nothing was sold at three figures.

After watching the auction for fun for a while I found myself bidding. I had exactly sixty three pounds in my account in the bank. I knew that any bidder must have a minimum of five hundred pounds in the bank to stand as security to bid for the artistic works. I enthusiastically participated in many bids as the starting price for each painting was a modest fifty to hundred guineas. Things went on well for me for quite sometime. But a cruel fate awaited me. A short red-faced man electrified the room by fixing the starting price at 4000 guineas. There was a rustle of excitement followed by terrible silence. But I found myself saying “and fifty”.

The dealer looked at the opener and at the company. To my surprise and horror, the dealer shot his bolt. My heart stopped and my blood congealed. I was in possession of the picture I did not want to buy. I was the top purchaser in the auction with just 63 pounds in the bank account. I turned to my friend for some moral support but he had deserted me to have a hearty laugh at a distance. With great alarm, I saw many other Barbizon pictures being put up and sold.

The auction came to an end. The bidders stood in a queue to pay the price and collect the pictures. I stayed behind at the end of the queue as I could not recall the name of any uncle, aunt or even a relative who could offer me 4050 guineas to buy the painting. I wished that a firing squad could give me a welcome relief by shooting me down. I preferred death to public disgrace.

But something divine turned my tragedy into a comedy. Just then one gentleman enquired if I was the gentlemen who bought “big Daubigny”. I admitted. The mediator asked if I could take 50 guineas for my interest and give up my claim. I would have hugged him and wept for joy of relief from the tight comer. But I had the guile/presence of mind to ask, “Is that the most he would offer?”

The mediator said that there was no harm in trying for a bit more. I said, “Tell him I will take hundred” myself and my friend started laughing. But when I saw the cheque for hundred guineas, I became grave. My friend said to me that it was he who brought me to Christie. I admitted, “I shall never forget it. It is indelibly branded in letters of fire on my heart”.

Tamil Nadu 11th English Model Question Paper 5

Question 42.
Describe the various reasons for King Richard’s grief and distress.
Answer:
King Richard II is a popular king. He has many nobles at the service. His rebellious cousin Bolingbroke attacks him with 10,000 men on his side. He sends message to the Welsh King for sending his army to defeat Bolingbroke. But to his shock, Welsh army is not sent. He realizes with alarm the terrible fate he would suffer in the hands of his foe and his most impending death in captivity. King Richard is reminded of the power of death that overshadows everything else. Death scoffs at the power of rulers.

Losing the battle, non¬receipt of Welsh army and the prospect of being jailed and killed worries Richard II. He realizes that in the hollow crown death had reigned him. In fact, death, a jester had misled him to believe that he was monarchising England. He can now only own a small patch of barren land. He is not an impregnable castle of brass anymore. He is an ordinary mortal. He too needs friends and needs to taste grief and face death.

[OR]

The poem ’Everest is not the only peak’ does not focus on the destination but the journey towards it. Discuss.
Answer:
The poet discusses the merits of efforts, duty and devotion and values of honesty, uprightness and service-mindedness. He does not have any special appreciation to those who reach great peaks like Himalayas. He appreciates the process, the journey and not the destination. When the whole world has a perspective of seeking glory using any foul method or underhand dealing, the poet differs from it.

For him the means is more important than the end. However modest may be one’s position is, it is adorable if attained by competence and merit. Pride is not in heights one reaches but in a life that knows no bending or kneeling. The poet respects one who does not stoop as a king. Thus the poet pays importance to the journey of life not the destination.

Question 43.
Write an essay of about 150 words by developing the following hints.
“After Twenty Years,” – time – 10 o’clock at night, – depeopled the streets – Only two men – on street – that night – policeman approaches – lurking man – light from his match – shows a pale face – keen eyes, a scar in eyebrow – a scarf pin – diamond – expensive watch – all hints as to the man’s past.
Answer:
The short story “After Twenty Years” Jakes place around 10 p.m. along a dark, windy New York City business avenue, mostly within the darkened doorway of a closed hardware-store.- This particular location had been a restaurant until five years ago. The plot begins with a policeman “on the beat” who discovers a.man standing in the dark doorway. The man then proceeds to explain why he is there. He and his best friend, Jimmy Wells had parted exactly twenty years ago to make their fortunes and had promised to meet at that spot “After Twenty Years”. He had gone west and gotten rich and was sure his friend, Jimmy would meet him if he were alive.

They talked a while and the policeman carried on. The man from the west wonders if his friend will come. The drama increases in anticipation of the rendezvous. Twenty minutes later, another man, whom we assume is his long lost friend, greets him warmly and they walk arm in arm discussing careers until they come to a well-lit comer near a drug store.

The man from the west gets a good look at his companion and discovers that he is not his friend, Jimmy. We are treated to several surprises for the man from the west is under arrest and secondly he is actually ‘Silky Bob’, a gangster from Chicago and finally the stranger is a plainclothes policeman. However, it seems that these three surprises are not enough. We get the “real” surprise when Jimmy Wells, the original policeman didn’t have the heart to arrest Bob, because he was his friend.

Tamil Nadu 11th English Model Question Paper 5

[OR]

Narrator – wants – photograph – photographer wait for an hour – comments – angry – called on Saturday – proof – Narrator shocked – photograph – not like him – worthless bauble.
Answer:
‘With the Photographer’ by Stephen Leacock is narrated in the first person. The narrator while sitting in the photographer’s studio begins to read some magazines and sees how other people look and the narrator begins to feel insecure about his appearance. It is also noticeable that the photographer takes a dislike to his face judging it to be wrong. What should have been a simple process of taking a photograph becomes something of a nightmare for the narrator. How confident the narrator becomes is noticeable when he returns to the photographer’s studio the following Saturday.

He realises that the photograph that has been taken of him looks nothing like him. This angers the narrator as he was simply looking for a photograph that would show his likeness. He accepts that he may not be to everybody’s liking when it comes to his physical appearance but is angered by the changes made. The photographer has retouched the photograph so much that the narrator does not recognise himself. The end of the story is also interesting as the reader realises that it is just a worthless bauble when he begins to cry. He has been judged solely by his appearance by the photographer whose job was to simply take a life like photograph.

Question 44.
Write a summary or Make notes of the following passage.
Answer:
The greatness of a country depends upon its people. India is fortunate to have vast human resources. Our countrymen are second to none in intelligence and in doing hard work. From the ancient period Indians excelled in art, architecture, knowledge of metals, medicines, literature etc., After our independence in 1947, the Government took steps to improve our country in all sphere. By the first Five-Year Plan was specially designed to improve our irrigational methods.

By the five year plans, provisions are made for the development of the country. The first Five-Year Plan was specially designed to improve our irrigational methods. By the green revolution we attained self sufficiency in the field of agricultural production. The present age is the atomic age. India too established an Atomic Energy Commission under the guidance of Dr. BhabhaI India made the first successful nuclear explosion on 18th Mary, 1974 which made India the sixth member of the world nuclear club. No other country’s scientists helped; it was purely Indian efforts. We have sent our Indian cosmonaut to space also. On April 3, 1984 Shri Rakesh Sharma, the best pilot of Indian Air Forse, travelled into space with two Soviet spacemen in Spyuz II spaceship.
Answer:
Summary
No. of words given in the original passage: 199
No. of words to be written in the summary: 199/3 = 66 ± 5

Rough Draft
India is fortunate to have vast human resources. Our countrymen are second to none in inteIligence and in doing hard work. Ancient Indians excelled in art, architecture, metallurgy, medicine, literature etc., After Independence, by the five year plans, provisions are made for the development of the country. By the green revolution self sufficiency in agricultural production was attained. Present age is the atomic age. An Atomic Energy Commission under the guidance of Dr. Babha. Due to the successful nuclear explosion in 1974, India the sixth member of the world nuclear club. It was purely Indian efforts. We have to sent Rakesh Sharma to space in Soyuz II.

Fair Draft
Greatness of India
India is fortunate to have vast human resources. Ancient Indians excelled in art, architecture, metallurgy, medicine, literature etc. After Independence by the green revolution self sufficiency in agricultural production was attained. Present age is the atomic age. Atomic Energy Commission was established under the guidance of Dr. Bhabha. Due to the successful nuclear explosion in 1974, India is the sixth member of the world nuclear club.

No. of words in the summary: 64

Tamil Nadu 11th English Model Question Paper 5

[OR]

Note-making
Title: Greatness of India
Answer:
1. Greatness of the country
people
our country men are second to none
from the ancient times Indians excelled in arts, architecture, metallurgy, medicine, literature etc.

2. Post Independence
government took steps to improve in all spheres
the first five-year plan was designed
Green Revolution attained self sufficiency

3. Present age
atomic age
India made the first nuclear explosion in 1974
sixth member of the world nuclear club
India sent cosmonaut, Shri Rakesh Sharma to space with two Soviet spacemen in Soyuz II spaceship.

Question 45.
You are Anita. You recently visited a hill station along with your parents. It was an exhilarating, adventurous and joyful experience. Write a letter to your friend sharing your experience in 150-200 words.
Answer:

25th June, 2020

From
Anitha
6, West street,
Chennai
To
Mercy
6, Abraham Street
PeriyarNagar
Chennai – 600 014

Dear Mercy,
Hope my letter finds you in the best of your health. Have you been to your grandparents house for vacation? I had recently gone to Matheran with my parents and really missed you. Matheran is the smallest hill station in the Indian state of Maharashtra and is located on the Western Ghats range at an elevation of around 800 m above sea level. It is about 90 km from Mumbai. Matheran’s proximity to many metropolitan cities makes it a popular weekend getaway for urban residents. Matheran, which means “forest on the forehead” is an eco-sensitive region declared by the Government of India.

It is Asia’s only automobile-free hill station. Doesn’t that spark an exhilarating, adventurous and joyful experience? Yes, from the foothills of the mountain, you either need to walk up the mountain to lodges and cottages there for your accommodation or need to hire Cycle rickshaws or ponies to travel. We all took a horse each and my little brother got on to a pony. Our baggage was loaded on to a wheel barrow to be brought up to our destination.

There are around 38 designated viewpoints in Matheran, including the Panorama Point that provides a 360-degree view of the surrounding area and also the Neral town. From this point, the view of sunset and sunrise is dramatic. The Louisa Point offers crystal clear view of the Prabal Fort. The other points are the One Tree Hill Point, Heart Point, Monkey Point, Porcupine Point, Rambagh Point, and more. We stayed in a Parsi bungalow. Beautiful old British-style architecture is preserved in Matheran. The roads are not metalled and are made of red laterite earth. As anticipated, there are many monkeys around and even the summer season was very pleasant.

I hope to visit the place again and I hope we will get an opportunity to visit it together. Why don’t you ask your parents if both our families could go to Matheran during our next vacation? My parents too were talking about going there again since it’s such a pollution free spot to relax and enjoy. Looking forward to meeting you in person to share the photographs we have taken here.

Yours loving friend,
Anita
Address on the Envelope
To
Mercy
6, Abraham Street
PeriyarNagar
Chennai – 600 014

Tamil Nadu 11th English Model Question Paper 5

[OR]

Write an essay in about 150 words on ‘Punctuality’
Answer:
Punctuality is essential to succeed in one’s career. In business schools, Time management is also taught. Those who are punctual prove that they respect the time of those whom they visit. Those who have missed interviews, flights, Olympic golds and even the opportunity to win goes by milliseconds know the value of time. We should cultivate the quality of being punctual right from our student days. Maintaining a calendar of action and keeping track of time all the time would help one to be punctual. God gives twenty four hours to each one of us, if we are punctual and make most of the given time we would definitely succeed in life.

Question 46.
Read the following sentences, spot the errors and rewrite the sentences correctly.
(a) There is an University at Madurai.
(b) He is confident on his success.
(c) Though he is old but he walks steadily.
(d) Sam is junior than me.
(e) His father is a honest man.
Answer:
(a) There is a University at Madurai.
(b) He is confident of his success.
(c) Though he is old he walks steadily.
(d) Sam is junior to me.
(e) His father is an honest man.

[OR]

Fill in the blanks appropriately.
(a) The story told by the ……….. fat man is not ………… (credible/credulous)
(6) My keys ……….. be in the car. (Fill in with a modal verb)
(c) This watch …………. belong to my father, (use semi-modal)
(d) The strike was announced ………… the disagreement between the management and the employees on the bonus issue. (Use a suitable link word)
Answer:
(a) credulous, credible
(b) must
(c) used to
(d) on account of

Tamil Nadu 11th English Model Question Paper 5

Question 47.
Identify each of the following sentences with the fields given below.
(a) Robots are steadily moving from fiction to fact.
(b) Examination should evaluate all aspects of learning.
(c) Indian players have performed well in the Commonwealth Games.
(d) Napoleon Bonaparte was considered an enlightened monarch of France.
(e) “Health is Wealth” but pollution takes it all away.
(Sports, Environment, History, Science, Education)
Answer:
(a) Science
(b) Education
(c) Sports
(d) History
(e) Environment

[OR]

Read the following passage carefully and answer the questions that follow.

I have always been attracted by people of unusual habits. By this, I do not imply hippies and drop-outs or anyone of that band of unhappy people for whom modem society is too sick and uncivilized to bear. No, I mean those quiet, orderly people, living apparently blameless lives, who enrich their har humdrum existences by adopting odd quirks and passions, unlikely, routines or harmless manias for useless objects. Like the secretary I had, who collected earwigs, though what she did with them I never knew, I believe that she loved them because they were small and thin like herself and had a way of scuttling about in very much the same way she did. Life, I am sure, would be very much poorer without such people in it. Sometimes, I feel I am lacking in personality, since I have none of these strange habits.. Unless you count the fact that I never eat eggs unless they are boiled in milk.
Questions.

  1. What attracted the author?
  2. According to the author, who are the people who have unusual habits?
  3. What did the author’s secretary collect?
  4. Why did she love them, according to the author?
  5. Do you think that the author has any strange habit? If so, what is it?

Answer:

  1. Unusual habits of others attracted the author.
  2. Quite orderly people living blameless lives have unusual habits.
  3. The author’s secretary collected ‘earwigs’.
  4. They were small and thin like herself scuttling about.
  5. Yes, he has a habit of eating eggs which are only boiled in milk.

Tamil Nadu 11th English Model Question Paper 5