## Tamil Nadu 12th Computer Science Model Question Paper 5 English Medium

Students can Download Tamil Nadu 12th Computer Science Model Question Paper 5 English Medium Pdf, Tamil Nadu 12th Computer Science 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 12th Computer Sceince Model Question Paper 5 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 15 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 16 to 24 in Part II are two-mark questions. These are to be answered in about one or two sentences.
6. Question numbers 25 to 33 in Part III are three-mark questions. These are to be answered in about three to five short sentences.
7. Question numbers 34 to 38 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3 Hours
Maximum Marks: 70

PART – 1

Choose the correct answer. Answer all the questions: [15 × 1 = 15]

Question 1.
Joining of two or more strings is called ……………….
(a) Append
(b) Repeating
(c) Concatenation
(d) Strike
(c) Concatenation

Question 2.
What is the output of the following snippet?
T=1
while T:
print(True)
break
(a) False
(b) True
(c) 0
(d) No output
(d) No output

Question 3.
………………… is an example for dynamic programming approach.
(a) Fibonacci
(b) Prime
(c) Factorial
(d) Odd, Even
(a) Fibonacci

Question 4.
Match the following.
1. // – (I) Modulus
2. # – (II) Floor division
3. % – (III) Strings
4. ||| ||| – (IV) Comments
(a) 1-(II), 2-(IV), 3-(I), 4-(III)
(b) 1-(I), 2-(II), 3-(III), 4-(IV)
(c) 1-(IV) 2-(II) 3-(I) 4-(III)
(d) 1-(IV), 2-(I), 3-(III), 4-(II)
(a) 1-(II), 2-(IV), 3-(I), 4-(III)

Question 5.
Lamda functions cannot be used in combination with ……………
(a) Filter
(b) Map
(c) Print
(d) Reduce
(c) Print

Question 6.
What is stride?
(a) Index value of slide operation
(b) First argument of slice operation
(c) Second argument of slice operation
(d) Third argument of slice operation
(d) Third argument of slice operation

Question 7.
function returns the length of the string?
(a) Strlen ( )
(b) Len (str)
(c) Length ( )
(d) Strlength ( )
(b) Len (str)

Question 8.
Let setA={3,6,9}, setB={l,3,9}. What will be the result of the following snippet? print(setA|setB)
(a) {3,6,9,1,3,9}
(b) {3,9}
(c) {1}
(d) {1,3,6,9}
(d) {1,3,6,9}

Question 9.
Which function is used to delete elements of a list if its index is unknown?
(a) Del
(b) Delete
(c) Remove( )
(d) Back space
(c) Remove( )

Question 10.
The first argument of the class method is …………………..
(a) Class
(b) Func
(c) Def
(d) Self
(d) Self

Question 11.
The …………………… command is used to insert, delete and update rows into the table.
(a) DCL
(b) DML
(c) DTL
(d) TCL
(b) DML

Question 12.
What will be written inside the file test.csv using the following program
import csv
D = [[‘Exam’],[‘Quarterly’],[‘Halfyearly’]]
csv.register_dialect(‘M’,lineterminator = ‘\n’)
with open(‘c:\pyprg\chl3\line2.csv’, ‘w’) as f:
wr = csv.writer(f,dialect=’M’)
wr.writerows(D) f.close( )
(a) Exam Quarterly Halfyearly
(b) Exam Quarterly Halfyearly
(c) EQH
(d) Exam,Quarterly,Halfyearly
(d) Exam,Quarterly,Halfyearly

Question 13.
The default mode when you open a file is ……………….
(a) r
(b) w
(c) x
(d) a
(a) r

Question 14.
Which operator is used to access the functions of a imported value?
(a) +
(b) *
(c) .
(d) /
(c) .

Question 15.
What will be the value assigned to the empty table if it is given Integer primary key?
(a) 0
(b) 1
(c) 2
(d) -1
(b) 1

PART – II

Answer any six questions. Question No. 21 is compulsory. [6 × 2 = 12]

Question 16.
List some aggregate functions in SQL?

1. COUNT( )
2. SUM( )
3. MIN( )
4. AVG( )
5. MAX( )

Question 17.
How recursive function works?

1. Recursive function is called by some external code.
2. If the base condition is met then the program gives meaningful output and exits.
3. Otherwise, function does some required processing and then calls itself to continue recursion.

Question 18.
Write a short about the followings with suitable example?

1. Capitalize( )
2. Swapcase( )

Question 19.
What is set in Python?
In python, a set is another type of collection data type. A Set is a mutable and an unordered collection of elements without duplicates. That means the elements within a set cannot be repeated. This feature used to include membership testing and eliminating duplicate elements.

Question 20.
Write note on self?
The class method must have the first argument named as self. No need to pass a value for this argument when we Call the method. Python provides its value automatically.

Even if a method takes no arguments, it should be defined with the first argument called self. If a method is defined to accept only one argument it will take it as two arguments i.e. self and the defined argument.

Question 21.
Differentiate data from Information.

Question 22.
What does data manipulation means?
By Data Manipulation we mean:

1. Insertion of new information into the database
2. Retrieval of information stored in a database.
3. Deletion of information from the database.
4. Modification of data stored in the database.

Question 23.
How will you sort more than one column from a csv file? Give an example statement?
To sort by more than one column you can use itemgetter with multiple indices: operator 1
itemgetter (1,2).
#using operator module for sorting multiple columns
sortedlist =sorted (data, key=operator.itemgetter(l))

Question 24.
What are the different formats to create csv files?

1. CSV file – data with default delimiter comma (,)
2. CSV file – data with Space at the beginning
3. CSV file – data with quotes
4. CSV file – data with custom Delimiters

PART – III

Answer any six questions. Question No. 29 is compulsory. [6 × 3 = 18]

Question 25.
Why access control is required?

• Access control is a security technique that regulates who or what can view or use resources in a computing environment.
• It is a fundamental concept in security that minimizes risk to the object. In other words access control is a selective restriction of access to data.
• In Object oriented programming languages it is implemented through access modifies.
• Classical object-oriented languages, such as C++ and Java, control the access to class members by public, private and protected keywords.

Question 26.
How will you execute python script?

1. If your code has any error, it will be shown in red color in the IDLE window, and Python describes the type of error occurred. To correct the errors, go back to Script editor, make corrections, save the file using Ctrl + S or File → Save and execute it again.
2. For all error free code, the output will appear in the IDLE window of Python.

Question 27.
Differentiate ceil( ) and floor( ) function?

Question 28.
Give any 6 formatting characters with their usage?

Question 29.
How will you access the list elements in reverse order?

Question 30.
What are the advantages of Tuples over a list?

1. The elements of a list are changeable (mutable) whereas the elements of a tuple are unchangeable (immutable), this is the key difference between tuples and list.
2. The elements of a list are enclosed within square brackets. But, the elements of a tuple are enclosed by paranthesis.
3. Iterating tuples is faster than list.

Question 31.
How will you create a set in python?
A set is created by placing all the elements separated by comma within a pair of curly brackets.
The set( ) function can also used to create sets in Python.
Syntax:
Set_Variable = {E1, E2, E3 ……… En}
Example
>>> S1={ 1, 2, 3, ‘A’, 3.14}
>>>print(S1)
{1, 2, 3, 3.14, ‘A’}
>>> S2={1, 2,2, ‘A’, 3.14}
>>> print(S2)
{1, 2, ‘A’, 3.14}

Question 32.
Write a program that creates a list of numbers from 1 to 20 that are divisible by 4? Program to create a list of numbers from 1 to 20 that are divisible by 4?
divBy4=[ ]
for i in range(21):
if (i%4= =0):
divBy4.append(i)
print(divBy4)

Output:
[0, 4, 8, 12, 16, 20]

Question 33.
Write the output for the program?
class Sample:
def_init_(self, num):
print(“Constructor of class Sample…”)
self.num=num
print(“The value is num)
S=Sample(10)
Constructor of class sample…
The value is: 10

PART – IV

Answer all the questions. [5 × 5 = 25]

Question 34(a).
Explain the concept of Dynamic programming with suitable example?
Dynamic programming:
Dynamic programming is an algorithmic design method that can be used when the solution to a problem can be viewed as the result of a sequence of decisions.

Dynamic programming approach is similar to divide and conquer. The given problem is divided into smaller and yet smaller possible sub-problems.

Dynamic programming is used whenever problems can be divided into similar sub-problems. So that their results can be re-used to complete the process.

Dynamic programming approaches are used to find the solution in optimized way. For every inner sub problem, dynamic algorithm will try to check the results of the previously solved sub-problems. The solutions of overlapped sub-problems are combined in order to get the better solution.

Steps to do Dynamic programming

• The given problem will be divided into smaller overlapping sub-problems.
• An optimum solution for the given problem can be achieved by using result of smaller sub-problem.
• Dynamic algorithms uses Memoization.

Fibonacci Series – An example:
Fibonacci series generates the subsequent number by adding two previous numbers. Fibonacci series starts from two numbers – Fib 0 & Fib 1. The initial values of fibO & fibl can be taken as 0 and 1.
Fibonacci series satisfies the following conditions:
Fibn = Fibn-1 + Fibn-2

Hence, a Fibonacci series for the n value 8 can look like this
Fib8 = 0 1 1 2 3 5 8 13

Fibonacci Iterative Algorithm with Dynamic programming approach

The following example shows a simple Dynamic programming approach for the generation of Fibonacci series.
Initialize f0 = 0, f1 =1

step-1: Print the initial values of Fibonacci f0 and f1
step-2: Calculate fibonacci fib ← f0 + f1
step-3: Assign f0 ← f1, f1 ← fib
step-4: Print the next consecutive value of fibanocci fib
step-5: Goto step-2 and repeat until the specified number of terms generated.

For example if we generate fibanocci series up to 10 digits, the algorithm will generate the series as shown below:
The Fibonacci series is : 0 1 1 2 3 5 8 13 21 34 55

[OR]

(b) List out the set operations supported by python?
(I) Union:
It includes all elements from two or more sets.
In python, the operator | is used to union of two sets. The function union( ) is also used to join two sets in python.

Example: Program to Join (Union) two sets using union operator
set_A={2,4,6,8}
set_B={‘A’, ‘B’, ’C, ’D’}
U_set=set_A|set_B
print(U_set)
Output:
{2, 4, 6, 8, ‘A’, ‘D’, ‘C’, ‘B’}

(II) Intersection:
It includes the common elements in two sets
The operator & is used to intersect two sets in python. The function intersection ( ) is also used to intersect two sets in python.
Example: Program to insect two sets using intersection operator
set_A={‘A’, 2, 4, ‘D’}
set_B={‘A’, ‘B’, ‘C’, ‘D’}
print(set_A & set_B)
Output:
{A’, ‘D’}

(III) Difference:
It includes all elements that are in first set (say set A) but not in the second set (say set B)
The minus (-) operator is used to difference set operation in python.
The function difference() is also used to difference operation.
Example: Program to difference of two sets using minus operator
set_A={A’, 2, 4, ‘D’}
set_B={‘A’, ‘B’, ‘C’, ‘D’}
print(set_A – set_B)
Output:
{2,4}

(IV) Symmetric difference:
It includes all the elements that are in two sets (say sets A and B) but not the one that are common to two sets.
The caret (^) operator is used to symmetric difference set operation in python. The function symmetric_difference( ) is also used to do the same operation.
Example: Program to symmetric difference of two sets using caret operator
set_A={‘A’, 2, 4, ‘D’}
set_B={‘A’, ‘B’, ‘C’, ‘D’}
print(set_A ^ set_B)
Output:
(2, 4, ’B’, ‘C’}

Question 35(a).
Write a python program using list to read marks of six subjects and to print the marks scored in each subject and show the total marks?
marks=[ ]
subjects=[‘Tamil’, ‘English’, ‘Physics’, ‘Chemistry’, ‘Comp. Science’, ’Maths’]
for i in range(6):
m=int(input(“Enter Mark = “))
marks.append(m)
for j in range(len(marks)):
print(“{ }. { } Mark= { } “.format(j1+,subjects[j],marks[j]))
print(“Total Marks = “, sum(marks))

Output
Enter Mark = 45
Enter Mark = 98
Enter Mark = 76
Enter Mark = 28
Enter Mark = 46
Enter Mark = 15

1. Tamil Mark = 45
2. English Mark = 98
3. Physics Mark = 76
4. Chemistry Mark = 28
5. Comp. Science Mark = 46
6. Maths Mark =15 Total Marks = 308

[OR]

(b) Write a class with two private class variables and print the sum using a method?
class Sample:
def_init_(self, n1, n2):
self._n1=n1
self._n2=n2
def display(self):
print(“class variable 1:”, self._n1)
print(“class variable 2:”, self._n2)
print(“sum self._n1+ self._n2)
s = sample(10, 20)
s.display( )

Output:
class variable 1 : 10
class variable 2 : 20
sum : 30

Question 36 (a).
Explain the characteristics of DBMS?
Characteristics of Database Management System?

[OR]

(b) Write any three DDL commands?
(a) CREATE TABLE Command:
You can create a table by using the CREATE TABLE command.
CREATE TABLE Student
Name char(20), \
Gender char(1),
Age integer,
Place char(10),
);

(b) ALTER COMMAND:
The ALTER command is used to alter the table structure like adding a column, renaming the existing column, change the data type of any column or size of the column or delete the column from the table. Alter table Student add address char;

(c) DROP TABLE:
Drop table command is used to remove a table from the database.
DROP TABLE Student;

Question 37 (a).
What are the functions performed by DDL?

1. It should identify the type of data division such as data item, segment, record and database file.
2. It gives a unique name to each data item type, record type, file type and data base.
3. It should specify the proper data type.
4. It should define the size of the data item.
5. It may define the range of values that a data item may use.
6. It may specify privacy locks for preventing unauthorized data entry.

[OR]

(b) Write the different methods to read a File in Python? Read a CSV File Using Python?
There are two ways to read a CSV file.

1. Use the csv module’s reader function

You can read the contents of CSV file with the help of csv.reader( ) method. The reader function is designed to take each line of the file and make a list of all columns. Then, you just choose the column you want the variable data for. Using this method one can read data from csv files of different formats like quotes (” “),pipe (|) and comma(,).

The syntax for csv.reader( ) is

where:-
File object:- passes the path and the mode of the file
Delimiter:- An optional parameter containing the standard dilects like, I etc can be omitted.
Fmtparams:- Optional parameter which help to override the default values of the dialects like skipinitialspace,quoting etc can be omitted.

(II) Reading CSV File Into A Dictionary:
To read a CSV file into a dictionary can be done by using DictReader class of csv module which works similar to the reader( ) class but creates an object which maps data to a dictionary.

The keys are given by the fieldnames as parameter. DictReader works by reading the first line of the CSV and using each comma separated value in this line as a dictionary key. The columns in each subsequent row then behave like dictionary values and can be accessed with the appropriate key (i.e. fieldname).

If the first row of your CSV does not contain your column names, you can pass a fieldnames parameter into the DictReader’s constructor to assign the dictionary keys manually.

The main difference between the csv.reader( ) and DictReader( ) is in simple terms csv. reader and csv. writer work with list/tuple, while csv.DictReader and csv.DictWriter work with dictionary. csv.DictReader and csv.DictWriter take additional argument fieldnames that are used as dictionary keys.

Question 38 (a).
Write a python program to read a csv file and store it in a list? Read A CSV File And Store It In A List?
In this topic you are going to read a CSV file and the contents of the file will be stored as a list. The syntax for storing in the List is
list = [ ]                           # Start as the empty list
list.append(element)      # Use append( ) to add elements
For example all the row values of “sample.csv” file is stored in a list using the following
program
import csv
# other way of declaring the filename
inFile= ‘c:\ \pyprg\\sample.csv’
F=open(inFile,’r’)
# declaring array array Value = [ ]
# displaying the content of the list for row in reader:
array Value.append(row)
print(row)
F.close( )

[OR]

(b) Explain OR, AND and NOT operator in SQL?
The WHERE clause can be combined with AND, OR, and NOT operators. The AND and OR operators are used to filter records based on more than one condition. In this example you
are going to display the details of students who have scored other than ‘A’. or ‘B’ from the “student table”

Example for WHERE WITH NOT Operator
import sqlite3
cursor = connection.cursor( )
result = cursor. fetchall( )
print(*result,sep=”\n”)

OUTPUT
(3, ’BASKAR’, ‘C, ‘M’, 75.2, ‘1998-05-17’)
(7, ‘TARUN’, ’D’, ‘M’, 62.3, ‘1999-02-01’)

Example for WHERE WITH AND Operator:-
In this example we are going to display the name, Rollno and Average of students who have scored an average between 80 to 90% (both limits are inclusive) import sqlite3
cursor = connection.cursor( )
cursor.execute(“SELECT Rollno, Same, Average FROM student WHERE (Average>=80 AND Average<=90)”)
result = cursor. fetchall( )
print(*result,sep=”\n”)

OUTPUT
(1, ’Akshay’, 87.8)
(5, ’VARUN’, 80.6)

Example for WHERE WITH OR Operator:-
In this example we are going to display the name and Rollno of students who have not scored an average between 60 to 70% import sqlite3
cursor = connection.cursor( )
cursor.execute(“SELECT Rollno,sname FROM student WHERE (Average<60 OR
Average> 70)”)
result = cursor. fetchall( )
print(*result,sep=”\n”)

OUTPUT
(1, ‘Akshay’)
(2, ‘Aravind’)
(4, ‘SAJINI’)
(5, ‘VARUN’)
(6, ‘PRIYA’)

## Tamil Nadu 12th Computer Science Model Question Paper 4 English Medium

Students can Download Tamil Nadu 12th Computer Science Model Question Paper 4 English Medium Pdf, Tamil Nadu 12th Computer Science 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 12th Computer Sceince 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 15 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 16 to 24 in Part II are two-mark questions. These are to be answered in about one or two sentences.
6. Question numbers 25 to 33 in Part III are three-mark questions. These are to be answered in about three to five short sentences.
7. Question numbers 34 to 38 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3 Hours
Maximum Marks: 70

PART – 1

Choose the correct answer. Answer all the questions: [15 × 1 = 15]

Question 1.
Why is the function random( ) is a impure function?
(a) It gives different outputs for same function call
(b) It gives different outputs when 0 is given
(c) It will not give different output
(a) It gives different outputs for same function call

Question 2.
The process of subdividing a computer program into separate sub-programs is called ……………….
(a) Procedural Programming
(b) Modular programming
(c) Event Driven Programming
(d) Object oriented Programming
(b) Modular programming

Question 3.
If a problem can be broken into subproblems which are reused several times, the problem possesses which property?
(a) Overlapping subproblems
(b) Optimal substructure
(c) Memoization
(d) Greedy
(a) Overlapping subproblems

Question 4.
Ox represents ………………. integer.
(a) Binary
(c) Decimal
(d) Octal

Question 5.
Which amongst this is not a Jump Statement?
(a) For
(b) Goto
(c) Continue
(d) Break
(a) For

Question 6.
Which is the optional part in range?
(a) Start
(b) Stop
(c) Step
(d) Iner
(c) Step

Question 7.
Which function is used to change all occurances of a particular character in a string?
(a) Replace ( )
(b) Change ( )
(c) Edit ( )
(d) Append( )
(a) Replace ( )

Question 8.
The default value of stride is …………………
(a) 0
(b) 1
(c) n
(d) n-1
(b) 1

Question 9.
The mixed collection of elements are called ………………
(a) List
(b) Tuples
(c) Sets
(d) Dictionary
(d) Dictionary

Question 10.
Class members are accessed through ……………. operators
(a) &
(b) .
(c) #
(d) %
(b) .

Question 11.
Find the wrong pair.
(a) Union U
(b) Project π
(c) Select σ
(d) Cartesian product P
(d) Cartesian product P

Question 12.
The update command specifies the rows to be changed using …………………
(a) Where
(b) Why
(c) What
(d) How
(a) Where

Question 13.
In open command, file name can be represented in ………………..
(a) ” ”
(b) ‘ ‘
(c) $(d) both (a) & (b) Answer: (d) both (a) & (b) Question 14. Which command of OS module executes the exe files? (a) Run (b) System ( ) (c) Main (d) Name Answer: (b) System ( ) Question 15. The SQL commands have to be defined with ………………… quotes. (a) Single (b) Double (c) Triple (d) No quote Answer: (c) Triple PART – II Answer any six questions. Question No. 21 is compulsory. [6 × 2 = 12] Question 16. Write the inference you get from X:=78 ? Answer: Value 78 being bound to the name X. Question 17. Write note on Definitions? Answer: Definitions bind values to names, Definitions are not expressions, Definitions are distinct syntactic blocks. Definitions can have expressions nested inside them, and vice-versa. Question 18. What is a Pair? Give an example? Answer: Pair is a compound structure which is made up of list or Tuple. lst[(0, 10), (1,20)] -where Any way of bundling two values together into one can be considered as a pair. Lists are a common method to do so. Therefore List can be called as Pairs. Question 19. Define fixed part in the space complexity? Answer: A fixed part is defined as the total space required to store certain data and variables for an algorithm. For example, simple variables and constants used in an algorithm. Question 20. Name the different types of alternative statements in Python? Answer: Python provides the following types of alternative or branching statements: 1. Simple if statement 2. if..else statement 3. if.elif statement Question 21. Find output: 1. abs (-25 + 12.0) 2. abs (-3.2). Answer: Output: 1. 13 2. 3.2 Question 22. Give the syntax for passing parameters in functions? Answer: Parameters or arguments can be passed to functions. Syntax: def function_name (parameters) separated by comma): Question 23. Differentiate del with remove( ) function of List? Answer: There are two ways to delete an element from a list viz. del statement and remove() function, del statement is used to delete known elements whereas remove() function is used to delete elements of a list if its index is unknown. The del statement can also be used to delete entire list. Question 24. What is instantiation? Answer: Once a class is created, next you should create an object or instance of that class. The process of creating object is called as “Class Instantiation”. Syntax: objectname = class_name( ) PART – III Answer any six questions. Question No. 29 is compulsory. [6 × 3 = 18] Question 25. What are class members? How do you define it? Answer: In Python, a class is defined by using the keyword class. Every class has a unique name followed by a colon (:). Syntax: class class name: statement_1 statement_2 statement ……. …… statement_n Where, statement in a class definition may be a variable declaration, decision control, loop or even a function definition. Variables defined inside a class are called as “Class Variable” and functions are called as “Methods”. Class variable and methods are together known as members of the class. The class members should be accessed through objects or instance of class. A class can be defined anywhere in a Python program. Example: Program to define a class class Sample: x, y = 10, 20 # class variables In the above code, name of the class is Sample and it has two variables x and y having the initial value 10 and 20 respectively. To access the values defined inside the class, you need an object or instance of the class. Question 26. What is meant by data model? Answer: • A data model describes how the data can be represented and accessed from a software after complete implementation • It is a simple abstraction of complex real world data gathering environment. • The main purpose of data model is to give an idea as how the final system or software will look like after development is completed. Question 27. Write the use of Savepoint command with an example? Answer: SAVEPOINT command: The SAVEPOINT command is used to temporarily save a transaction so that you can rollback to the point whenever required. The different states of our table can be saved at anytime using different names and the rollback to that state can be done using the ROLLBACK command. SAVEPOINT savepoint_name; UPDATE Student SET Name = ‘Mini ’ WHERE Admno=105; SAVEPOINT A; Question 28. Write a program to count the number of male and female students from the student table? Example: Answer: import sqlite3 connection= sqlite3.connect(“Academy.db”) cursor = connection. cursor( ) cursor. execute(” SELECT gender,count(gender) FROM student Group BY gender”) result = cursor. fetchall( ) print(*result,sep=”\n”) Output: (‘F’, 2) (‘M’, 5) Question 29. What will be the output of the given python program? Answer: str1 = “welcome” str2 = “to school” str3 = str 1 [: 2]+str2 [len(str2)-2:] print(str3) Output: weool Question 30. Write any 6 delimiters in python? Answer: Question 31. What are string literals? Explain? Answer: In Python a string literal is a sequence of characters surrounded by quotes. Python supports single, double and triple quotes for a string. A character literal is a single character surrounded by single or double quotes. The value with triple-quote is used to give multi-line string literal. strings = “This is Python” char = “C” multilinestr = ‘”This is a multiline string with more than one line code.'” Question 32. Give an example program for Ternary operator? Answer: # Program to demonstrate conditional operator a, b = 30, 20 # Copy value of a in min if a < b else copy b min = a if a < b else b print (“The Minimum of A and B is “,min) # End of the Program Output: The Minimum of A and B is 20 Question 33. Write a note about count( ) function in python? Answer: PART – IV Answer all the questions. [5 × 5 = 25] Question 34(a). Write the Output for the given program? Answer: [OR] (b) Write a python program to check whether the given number is odd or even? Example: #Program to check if the accepted number odd or even? Answer: a = int(input(“Enter any number :”)) if a%2==0: print (a, ” is an even number”) else: print (a, ” is an odd number”) Output 1: Enter any number :56 56 is an even number Output 2: Enter any number :67 67 is an odd number Question 35(a). Explain while loop with sample program? Answer: Syntax: while <condition>: statements block 1 [else: statements block 2] In the while loop, the condition is any valid Boolean expression returning True or False. The else part of while is optional part of while. The statements blockl is kept executed till the condition is True. If the else part is written, it is executed when the condition is tested False. Recall while loop belongs to entry check loop type, that is it is not executed even once if the condition is tested False in the beginning. Example: program to illustrate the use of while loop – to print all numbers from 10 to 15 Output: 10 11 12 13 14 15 [OR] (b) Explain the following built-in functions? Answer: Question 36 (a). Evaluate the following function and write the output? 1. forinat(66, ‘c’) 2. format(10, ‘x’) 3. format(10, ‘X’) 4. format(0bll0, ‘d’) 5. format(0xa, ‘d’) Answer: 1. B 2. a 3. A 4. 6 5. 10 [OR] (b) Write a program to swap two strings? Answer: print(“Enter ‘x’ for exit.”) string 1 = input(“Enter first string : “) if string 1 = = ‘x’: exit)); else: string2 = input(“Enter second string : “) print(” \n Both strings before swap : “) print(“First string = ” , string1) print(” Second string = ” , string2) temp = string1 string1 = string2 string2 = temp print(“\n Both strings after swap : “) print(“First string = ” , string1) print(” Second string = “, string2) Output: Enter ‘X’ for exit Enter first string : code Enter second string : python Both strings before swap: First string = code Second string = python Both strings after swap: First string = python Second string = code Question 37 (a). Write a program to create a list of numbers in the range 1 to 20. Then delete all the numbers from the list that are divisible by 3? Answer: num = [ ] for x in range(1, 21): num.append(x) print(“The list of numbers from 1 to 20 =”, num) for index, i in enumerate(num): if(i % 3 == 0) del num[index] print(“The list after deleting numbers”, num) Output: The list of numbers from 1 to 20 = [1,2,3,4… 20] The list after deleting numbers[l, 2, 4, 5, 7, 8, 10, 11, 13, 14, 16, 17, 19, 20] [OR] (b) Write a program using class to store name and marks of students in list and print total marks? Answer: class stud: def_init_(self): self.name=” ” self.m1=0 self.m2=0 self.tot=0 def gdata(self): self.name = input(“Enter your name”) self.m1 = int(input(“Enter marks 1”)) self.m2 = int(input(“Enter marks2”)) self, tot = self.m1 + self.m2 def disp(self): print(self.name) print(self.m1) print(self.m2) print(self.tot) mlist = [ ] st = stud( ) st.gdata( ) mlist.append(st) for x in mlist: x.disp( ) Output: Question 38. Write the different types of constraints and their functions? Answer: Constraints ensure database integrity, therefore known as database integrity constraints. (I) Unique Constraint: This constraint ensures that no two rows have the same value in the specified columns. For example UNIQUE constraint applied on Admno of student table ensures that no two students have the same admission number and the constraint can be used as: CREATE TABLE Student ( Admno integer NOT NULL UNIQUE → Unique constraint Name char (20) NOT NULL, Gender char (1), Age integer, Place char (10), ); The UNIQUE constraint can be applied only to fields that have also been declared as NOT NULL. When two constraints are applied on a single field, it is known as multiple constraints. In the above Multiple constraints NOT NULL and UNIQUE are applied on a single field Admno, the constraints are separated by a space and at the end of the field definition a comma(,) is added. By adding these two constraints the field Admno must take some value i.e. will not be NULL and should not be duplicated. (II) Primary Key Constraint: This constraint declares a field as a Primary key which helps to uniquely identify a record. It is similar to unique constraint except that only one field of a table can be set as primary key. The primary key does not allow NULL values and therefore a field declared as primary key must have the NOT NULL constraint. Example showing Primary Key Constraint in the student table: CREATE TABLE Student ( Admno integer NOT NULL PRIMARY KEY, → Primary Key constraint Name char(20)NOT NULL, Gender char(I), Age integer, Place char(10), ); In the above example the Admno field has been set as primary key and therefore will help us to uniquely identify a record, it is also set NOT NULL, therefore this field value cannot be empty, (III) DEFAULT Constraint: The DEFA ULT constraint is used to assign a default value for the field. When no value is given for the specified field having DEFA ULT constraint, automatically the default value will be assigned to the field. Example showing DEFAULT Constraint in the student table: CREATE TABLE Student ( Admno integer NOT NULL PRIMARY KEY, Name char(20) NOT NULL, Gender char(1), Age integer DEFAULT = “17”, → Default Constraint Place char(10), ); – In the above example the “Age” field is assigned a default value of 17, therefore when no value is entered in age by the user, it automatically assigns 17 to Age. (IV) Check Constraint: This constraint helps to set a limit value placed for a field. When we define a check constraint on a single column, it allows only the restricted values on that field. Example showing check constraint in the student table: CREATE TABLE Student ( Admno integer NOT NULL PRIMARY KEY Name char(20)NOT NULL, Gender char(1), Age integer (CHECK<=19), → Check Constraint Place char(10), ); In the above example the check constraint is set to Age field where the value of Age must be less than or equal to 19. Note: The check constraint may use relational and logical operators for condition. (V) TABLE CONSTRAINT: When the constraint is applied to a group of fields of the table, it is known as Table constraint. The table constraint is normally given at the end of the table definition. Let us take a new table namely Student 1 with the following fields Admno, Firstname, Lastname, Gender, Age, Place: CREATE TABLE Student 1 ( Admno integer NOT NULL, Firstname char(20), Lastname char(20), Gender char(1), Age integer, Place char(10), PRIMARY KEY (Firstname, Lastname) → Table constraint ); In the above example, the two fields, Firstname and Lastname are defined as Primary key which is a Table constraint. [OR] (b) Write a C++ program to print boundary elements of a matrix and name the file as Border.cpp. Write a python program to execute the Border.cpp? Answer: Select File → New in Notepad and type the C++ program. #include<iostream> #include<bits/stdc++.h> using namespace std; const int MAX = 100; void printBoundary(int a[ ][max], int m, int n) { for (int i=0; i < m; i++) { for(int j=0; j < n; j++) { if(i= =0 || j= =0 || i= =n-l || j= =n-1) cout<<a[i][j] <<” ” else cout« ” ” cout« ” ” } cout<<” \n”; }} int main( ) { inta[4][MAX] = { {1 ,2, 3, 4}, {5, 6, 7, 8}, {1, 2, 3, 4}, {5, 6, 7, 8}}; print Boundary(a, 4, 4); return 0; } save it as Border.cpp open a New notepad file and type the python program to execute border.cpp #python border.py -i border.cpp import sys,os,getopt def main(argv): cppfile =” exe_file =” opts, args = getopt.getopt(argv, “i:”,[‘ifile=’]) for o, a in opts: if o in(“-i”, “-ifile”): cppfile =a+ ‘.cpp’ exefile = a+ ‘.exe’ run(cpp file, exe file) def run(cpp_file, exe file): print(“Compiling” + cppfile) os.system(‘g++’+ cpp file + ‘-o ‘+ exe file) print(“Running” + exefile) print(” “) print os.system(exe_file) print if name =’ main ‘: main(sys.argv[l:]) Output: ## Tamil Nadu 12th Computer Science Model Question Paper 3 English Medium Students can Download Tamil Nadu 12th Computer Science Model Question Paper 3 English Medium Pdf, Tamil Nadu 12th Computer Science 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 12th Computer Sceince Model Question Paper 3 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 15 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 16 to 24 in Part II are two-mark questions. These are to be answered in about one or two sentences. 6. Question numbers 25 to 33 in Part III are three-mark questions. These are to be answered in about three to five short sentences. 7. Question numbers 34 to 38 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary. Time: 3 Hours Maximum Marks: 70 PART – 1 Choose the correct answer. Answer all the questions: [15 × 1 = 15] Question 1. Sin (0) = 0 is an example for function. (a) Impure (b) Pure (c) Interface (d) Instruction Answer: (b) Pure Question 2. Write the output (value stored in b) 1. a:=5 2. b:=a (a) 0 (b) 3 (c) 5 (d) 2 Answer: (c) 5 Question 3. Which of the following shortcut is used to create new Python Program? (a) Ctrl + C (b) Ctrl + F (c) Ctrl + B (d) Ctrl + N Answer: (d) Ctrl + N Question 4. Escape sequences can be given using ……………………. parameter in print( ) function. (a) Ret (b) Let (c) End (d) Sep Answer: (c) End Question 5. Pick the correct one to execute the given statement successfully, if_: print(x,” is a leap year”) (a) x % 2 = 0 (b) x % 4 = = 0 (c) x/4 = 0 (d) x % 4 = 0 Answer: (b) x % 4 = = 0 Question 6. Find the wrong statement from the following. (i) Slice a single character from a string (ii) Slice a substring (iii) Slice a substring without specifying beginning index (iv) Slice a substring without specifying end index (a) (i), (ii) (b) (ii), (iii), (iv) (c) All are wrong (d) All are correct Answer: (d) All are correct Question 7. Write the output. list = [34, 45, 48] list.append(90) (a) [34, 45, 48, 90] (b) [90, 34, 45, 48] (c) [34, 90, 45, 48] (d) [34, 45, 90, 48] Answer: (a) [34, 45, 48, 90] Question 8. Match the following. 1. constructor – (I) def process(self) 2. Destructor – (II) S.x 3. method – (III) _del_(self) 4. object – (IV) _init_(self, num) (a) 1-(IV) 2-(III) 3-(I) 4-(II) (b) 1 -(I) 2-(II) 3-(III) 4-(IV) (c) 1-(IV) 2-(II) 3-(I) 4-(III) (d) 1 -(I) 2-(III) 3-(IV) 4-(II) Answer: (a) 1-(IV) 2-(III) 3-(I) 4-(II) Question 9. Match the following 1. Relational – (I) Classes 2. Object model – (II) Mainframe 3. ER model – (III) Key 4. Hierarchical – (IV) Entity (a) 1-(III), 2-(I), 3-(IV), 4-(II) (b) 1-(I), 2-(II), 3-(III), 4-(IV) (c) 1-(IV), 2-(III), 3-(I), 4-(II) (d) 1-(IV), 2-(II), 3-(I), 4-(III) Answer: (a) 1-(III), 2-(I), 3-(IV), 4-(II) Question 10. Identify which statement is given wrongly? (a) DDL statement should specify the proper data type (b) DDL should not identify the type of data division (c) DDL may define the range of values (d) DDL should define the size of the data item Answer: (b) DDL should not identify the type of data division Question 11. (I) csv.writer work with list/tuple (II) csv.Dictwriter work with dictionary (III) csv.DictReader work with list/tuple/dictionary. (a) (I), (II) – True (III) – False (b) (I) -True (II), (III) – False (c) (I), (II), (III) – True (d) (I), (II), (III) – False Answer: (a) (I), (II) – True (III) – False Question 12. Pick the odd one out. (a) Perl (b) Ruby (c) Tel (d) Java Answer: (d) Java Question 13. Match the following related to OS module. 1. g++ – (I) Name of C++ file 2. variable namel – (II) General compiler 3. mode – (III) Input output mode 4. variable_name2 – (IV) Name of exe file (a) 1-(I), 2-(II), 3-(III), 4-(IV) (b) 1-(II), 2-(I), 3-(III), 4-(IV) (c) 1-(IV), 2-(III), 3-(II), 4-(I) (d) 1-(IV), 2-(I), 3-(III) , 4-(II) Answer: (b) 1-(II), 2-(I), 3-(III), 4-(IV) Question 14. Assertion (A): Query result can be stored in csv file. Reason (R): To display the query output in a tabular form. (a) R is the reason for A (b) R is wrong (c) A is wrong (d) Both are not related Answer: (a) R is the reason for A Question 15. Identify the Incorrect pair 1. Group – (i) Aggregate functions 2. Order by – (ii) Sortind data 3. Having – (iii) Filter data 4. Where – (iv) max, min (a) (2) (b) (1) (c) (4) (d) (3) Answer: (c) (4) PART – II Answer any six questions. Question No. 21 is compulsory. [6 × 2 = 12] Question 16. Write note on keyword argument? Answer: Keyword arguments will invoke the function after the parameters are recognized by their parameter names. The value of the keyword argument is matched with the parameter name and so, one can also put arguments in improper order (not in order). Question 17. What is composition in functions? Answer: The value returned by a function may be used as an argument for another function in a nested manner. This is called composition. For example, if we wish to take a numeric value or an expression as a input from the user, we take the input string from the user using the function input( ) and apply eval( ) function to evaluate its value. Question 18. Write note on len (str)? Answer: Syntax : len(str) Description: Returns the length (no of characters) of the string. Example: >>> A=”Corporation” >>> print(len(A)) 11 Question 19. Define sequence data type? Answer: Python programming language has four collections of data types such as List, Tuples, Set – and Dictionary. A list in Python is known as a “sequence data type” like strings. It is an ordered collection of values enclosed within square brackets [ ]. Question 20. Give example for modifying variable outside a function? Answer: Example: let y: = 0 (int) inc (int) x y: = y + x; return (y) Question 21. Define ADT? Answer: Abstract Data type (ADT) is a type (or class) for objects whose behavior is defined by a set of value and a set of operations. Question 22. Write note on Boolean data type? Answer: A Boolean data can have any of the two values: True or False. Example : Bool_varl=True Bool_var2=False Question 23. Write note on column, table constraint? Answer: Column constraint: Column constraint apply only to individual column. Table constraint: Table constraint apply to a group of one or more columns. Question 24. What are the two ways of passing arguments in variable length method? Answer: 1. Non keyword variable arguments 2. Keyword variable arguments PART – III Answer any six questions. Question No. 29 is compulsory. [6 × 3 = 18] Question 25. Explain print ( ) in python? Answer: In Python, the print( ) function is used to display result on the screen. The syntax for print( ) is as follows: Example: print (“string to be displayed as output ”) print (variable) print (“String to be displayed as output ”, variable) print (“Stringl ”, variable, “String 2”, variable, “String 3” ) Question 26. Give the rules for variables? Answer: An Identifier is a name used to identify a variable, function, class, module or object. 1. An identifier must start with an alphabet (A..Z or a..z) or underscore (_). 2. Identifiers may contain digits (0 .. 9) 3. Python identifiers are case sensitive, i.e., uppercase and lowercase letters are distinct. 4. Identifiers must not be a python keyword. 5. Python does not allow punctuation character such as %,$, @ etc., within identifiers.

Question 27.
Explain commands and their functions in SQL?
Tables are the only way to store data, therefore all the information has to be arranged in the form of tables. The SQL provides a predetermined set of commands to work on databases.

Keywords:
They have a special meaning in SQL. They are understood as instructions.

Commands:
They are instructions given by the user to the database also known as statements.

Clauses:
They begin with a keyword and consist of keyword and argument.

Arguments:
They are the values given to make the clause complete.

Question 28.
Write note on abs ( ), Ord ( ), Chr ( )?

Question 29.
Write a pure function to find Gcd of 2 numbers?
let rec gcd a b :=
if b < > 0 then gcd b (a mod b) else return a;;
output
gcd 13 27;;
-: int = 1
gcd 20536 7826;;
-: int = 2
In the above example program ‘gcd’ is the name of the function which recursively called till the variable ‘b’ becomes ‘O’. Remember b and (a mod b) are two arguments passed to ‘a’ and ‘b’of the gcd function.

Question 30.
Write the use of Savepoint command with an example?
SAVEPOINT command:
The SAVEPOINT command is used to temporarily save a transaction so that you can rollback to the point whenever required. The different states of our table can be saved at anytime using different names and the rollback to that state can be done using the ROLLBACK command.

SAVEPOINT savepoint name;
UPDATE Student SET Name = ‘Mini’WHERE Admno=105;
SAVEPOINT A;

Question 31.
Find output:
str1 = input (“Enter a string: “)
index= -1
while index >= -(len(str1)):
print (“Subscriptf”,index,”] : ” + str1 [index])
index += -1
Output:
Enter a string: welcome
Subscript [ -1 ] : e
Subscript [ -2 ] : m
Subscript [ -3 ] : o
Subscript [ -4] : c
Subscript [ -5 ] : 1
Subscript [ -6 ] : e
Subscript [ -7 ] : w

Question 32.
Name some functions where lambda 0 is used?
filter ( ), map ( ), reduce

Question 33.
Find output:
def
printinfo (name, sal=500):
print (name)
print (sal)
return
print info (“mani”)
Output:
Mani
500

PART – IV

Answer all the questions. [5 × 5 = 25]

Question 34 (a).
Explain, various data types in SQL?

[OR]

(b) Compare DBMS with RDBMS?

Question 35 (a).
Explain various characteristics of modules?

1. Modules contain instructions, processing logic, and data.
2. Modules can be separately compiled and stored in a library.
3. Modules can be included in a program.
4. Module segments can be used by invoking a name and some parameters.
5. Module segments can be used by other modules.

[OR]

(b) Explain Alter command in SQL?
The ALTER command is used to alter the table structure like adding a column, renaming the existing column, change the data type of any column or size of the column or delete the column from the table. It is used in the following way:

ALTER TABLE <table-name> ADD <column-name> <data type> <size>;
To add a new column “Address” of type ‘char’ to the Student table, the command is used as:-

To modify existing column of table, the ALTER TABLE command can be used with MODIFY clause like wise:

ALTER <table-name> MODIFY<column-name> <data type> <size>;
ALTER TABLE Student MODIFY Address char (25);

The above command will modify the address column of the Student table to now hold 25 characters. The ALTER command can be used to rename an existing column in the following way:

ALTER <table-name> RENAME old-column-name TO new-column-name;
For example to rename the column Address to City, the command is used as:

ALTER TABLE Student RENAME Address TO City;
The ALTER command can also be used to remove a column or all columns, for example to remove a particular column, the DROP COLUMN is used with the ALTER TABLE to remove a particular field, the command can be used as:

ALTER <table-name> DROP COLUMN <column-name>;
To remove the column City from the Student table, the command is used as:
ALTER TABLE Student DROP COLUMN City;

Question 36(a).
Consider the following employee table. Write SQL commands for the qtns.(i) to (v)?

1. To display the details of all employees in descending order of pay.
2. To display all employees whose allowance is between 5000 and 7000.
3. To remove the employees who are mechanic.
4. To add a new row.
5. To display the details of all employees who are operators.

Output:

1. SELECT * FROM employee ORDER BY DESC;
2. SELECT * FROM employee WHERE ((allowance >= 5000) AND (allowance <=7000));
3. DELETE FROM employee WHERE desig = “Mechanic”;
4. INSERT INTO employee(Empcode, Name, desig, pay, allowance) VALUES(‘M1006’, ‘RAM’, ‘Mechanic’,22000, 8000);
5. SELECT * FROM employee WHERE desig = ‘operator’;

[OR]

(b) How will you write data into different types in CSV files?
As you know Python provides an easy way to work with CSV file and has csv module to read and write data in the csv file. In the previous topics, You have learned how to read CSV files • in Python. In similar way, You can also write a new or edit an existing CSV files in Python.

1. Creating A New Normal CSV File
2. Modifying An Existing File
3. Writing On A CSV File with Quotes
4. Writing On A CSV File with Custom Delimiters
5. Writing On A CSV File with Lineterminator
6. Writing On A CSV File with Quotechars
7. Writing CSV File Into A Dictionary
8. Getting Data At Runtime And Writing In a File

Question 37 (a).
Write a sample program to illustrate private and public variables using classes?
class Sample:
def_init_(self, n1, n2):
self._n1=n1
self._n2=n2
def display(self):
print(“Class variable 1 = “, self.n1)
print(“Class variable 2 = “, self._n2)
S=Sample(12, 14)
S.display( )
print(“Value 1 = “, S.n1)
print(“Value 2 = “, S._n2)
In the above program, there are two class variables n1 and n2 are declared. The variable nl is a public variable and n2 is a private variable. The display( ) member method is defined to show the values passed to these two variables.

The print statements defined within class will successfully display the values of n1 and n2, even though the class variable n2 is private. Because, in this case, n2 is called by a method defined inside the class. But, when we try to access the value of n2 from outside the class Python throws an error. Because, private variable cannot be accessed from outside the class.

Output:
Class variable 1 = 12 Class variable 2=14 Value 1 = 12
Traceback (most recent call last):
File “D:/Python/Class-Test-04.py”, line 12, in <module> print(“Value 2 = “, S._n2)
AttributeError: ‘Sample’ object has no attribute ‘n2’

[OR]

(b) Explain updating and deleting Tuple with example?
As you know a tuple is immutable, the elements in a tuple cannot be changed. Instead of altering values in a tuple, joining two tuples or deleting the entire tuple is possible.
Example:
# Program to join two tuples
Tup 1 = (2, 4, 6, 8, 10)
Tup 2 = (1,3,5,7,9)
Tup 3 = Tup1 + Tup2
print(Tup3)

Output:
(2, 4, 6, 8, 10, 1, 3, 5, 7, 9)
To delete an entire tuple, the del command can be used.
Syntax: del tuple_name
Example:
Tup1 =(2, 4, 6, 8, 10)
print(“The elements of Tup1 is “, Tup1)
del Tup1
print (Tup1)

Output:
The elements of Tupl is (2, 4, 6, 8, 10)
Traceback (most recent call last):
File “D:/Python/Tuple Examp l.py”, line 4, in <module>
print (Tupl)
NameError: name ‘Tup1’ is not defined
Note that, the print statement in the above code prints the elements. Then, the del statement deletes the entire tuple. When you try to print the deleted tuple, Python shows the error.

Question 38 (a).
Explain nested If -elif – else statement with example?
When we need to construct a chain of if statement(s) then ‘elif’ clause can be used instead of ‘else’.
Syntax:
if <condition-l>:
statements-block 1

elif <condition-2>:
statements-block 2

else:
statements-block n

In the syntax of if.elifi.else mentioned above, condition-1 is tested if it is true then statements- block 1 is executed, otherwise the control checks . condition-2, if it is true statements-block2 is executed and even if it fails statements-block n mentioned in else part is executed.

‘elif’ clause combines ifi.else-ifi.else statements to one if..elif…else, ‘elif’ can be considered to be abbreviation of ‘else if’. In an ‘if’ statement there is no limit of ‘elif’ clause that can be used, but an ‘else’ clause if used should be placed at the end.

Example:
Program to illustrate the use of nested if statement

m1=int (input(“Enter mark in first subject: ”))
m2=int (input(“Enter mark in second subject: ”))
avg= (m1+m2)/2
if avg>=80:
elif avg>=70 and avg<80:
elif avg>=60 and avg<70:
elif avg>=50 and avg<60:
else:

Output 1:
Enter mark in first subject: 34 Enter mark in second subject: 78 Grade : D

Output 2 :
Enter mark in first subject: 67

[OR]

(b) Explain how to pass parameters in functions?
Parameters or arguments can be passed to functions:-

deffunction_name (parameters) separated by comma):

Let us see the use of parameters while defining functions. The parameters that you place in the parenthesis will be used by the function itself. You can pass all sorts of data to the functions. Here is an example program that defines a function that helps to pass parameters into the function.

# assume w = 3 and h = 5
def area(w,h):
return w * h
print (area (3,5))

The above code assigns the width and height values to the parameters w and h. These parameters are used in the creation of the function “area”. When you call the above function, it returns the product of width and height as output. The value of 3 and 5 are passed to w and h respectively, the function will return 15 as output.

## Tamil Nadu 12th Computer Science Model Question Paper 2 English Medium

Students can Download Tamil Nadu 12th Computer Science Model Question Paper 2 English Medium Pdf, Tamil Nadu 12th Computer Science 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 12th Computer Sceince Model Question Paper 2 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 15 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 16 to 24 in Part II are two-mark questions. These are to be answered in about one or two sentences.
6. Question numbers 25 to 33 in Part III are three-mark questions. These are to be answered in about three to five short sentences.
7. Question numbers 34 to 38 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3 Hours
Maximum Marks: 70

PART – 1

Choose the correct answer. Answer all the questions: [15 × 1 = 15]

Question 1.
Which of the following defines what an object can do?
(a) OS
(b) Computer
(c) Interface
(d) Interpreter
(c) Interface

Question 2.
Identify the constructor from the following?
(a) City=makecity(name, lat, Ion)
(b) Getname (city)
(c) Getlat (city)
(d) Getlon (city)
(a) City=makecity(name, lat, Ion)

Question 3.
Which of the following security technique that regulates who can use resources in a computing environment?
(b) Authentication
(c) Access control
(d) Certification
(c) Access control

Question 4.
………………….. is an expression of algorithm in a programming language.
(a) Program
(b) Language
(c) Module
(d) Memory
(a) Program

Question 5.
In selection sort, there will be ……………. exchange for every pass through the list.
(a) 0
(b) 1
(c) n
(d) n2
(b) 1

Question 6.
………….. function is the alternative for bin ( ) function.
(a) Ord ( )
(b) Format ( )
(c) Binary ( )
(d) Bin ( )
(b) Format ( )

Question 7.
Which command is used to remove the entire string variable?
(a) Remove
(b) Del
(c) Delete
(d) Strike
(b) Del

Question 8.
Functions defined inside a class ………………..
(a) Functions
(b) Module
(c) Methods
(d) Section
(c) Methods

Question 9.
In which database systems, transaction management is efficient?
(a) DBMS
(b) RDBMS
(c) ERDMS
(d) DMBS
(b) RDBMS

Question 10.
When the command to run a python program is given to interpreter, code at ……………… indentation is executed ………………..
(a) level 0
(b) level 1
(c) level 2
(d) level 3
(a) level 0

Question 11.
Which has a native library for sqlite?
(a) C
(b) C++
(c) Java
(d) Python
(d) Python

Question 12.
Which table holds the key information about the database tables?
(a) Page
(b) Select
(c) Primary
(d) Master
(d) Master

Question 13.
Pick the odd one out
(a) Dashboard
(b) Live graph
(c) Barplot
(d) Histogram
(c) Barplot

Question 14.
Which function shows the percentage value in pie chart?
(a) Percent
(b) Percentage
(c) Slice
(d) Autopct
(d) Autopct

Question 15.
Which of the following module is provided by Python to do several operations on the CSV files?
(a) Py
(b) Xls
(c) Csv
(d) Os
(d) Os

PART – II

Answer any six questions. Question No. 21 is compulsory. [6 × 2 = 12]

Question 16.
Write note on Grant and Revoke command?
Grant: Grants permission to one or more users to perform specific tasks.
Revoke: Withdraws the access permission given by the GRANT statement.

Question 17.
Name some clauses in SQL?

1. DISTINCT
2. WHERE
3. GROUP BY
4. ORDER BY
5. HAVING

Question 18.
Define subroutine?
Subroutines are the basic building blocks of computer programs. Subroutines are small sections of code that are used to perform a particular task that can be used repeatedly. In Programming languages these subroutines are called as Functions.

Question 19.
Write note on modules?
A module is a part of a program. Programs are composed of one or more independently developed modules. A single module can contain one or several statements closely related each other. Modules work perfectly on individual level and can be integrated with other modules.

Question 20.
Write note on Exponent data?
An Exponent data contains decimal digit part, decimal point, exponent part followed by one or more digits.

Question 21.
Write a program to check if year is leap or not?
n=int(input(“Enter any year”1)) if(n % 4 == 0):
print “Leap Year”
else:
print “Not a Leap Year”

Question 22.
Write the syntax of if-else statements?
Syntax:
if:
statements-block 1 else:
statements-block 2

Question 23.
Write note on list comprehension?
List comprehension is a simplest way of creating sequence of elements that satisfy a certain condition.
Syntax:
List = [expression for variable in range]

Question 24.
What is the purpose of Destructor?
Destructor is also a special method gets executed automatically when an object exit from the scope. It is just opposite to constructor. In Python, del ( ) method is used as destructor.

PART – III

Answer any six questions. Question No. 29 is compulsory. [6 × 3 = 18]

Question 25.
What are the two phases in the Analysis of algorithms and performance evaluation?
(a) A Priori estimates:
This is a theoretical performance analysis of an algorithm. Efficiency of an algorithm is measured by assuming the external factors.

(b) A Posteriori testing:
This is called performance measurement. In this analysis, actual statistics like running time and required for the algorithm executions are collected.

Question 26.
Write note on Arithmetic operators?
An arithmetic operator is a mathematical operator that takes two operands and performs a calculation on them. They are used for simple arithmetic. Most computer languages contain a set of such operators that can be used within equations to perform different types of sequential calculations.

Question 27.
In Python, comments begin with hash symbol (#). The lines that begins with # are considered as comments and ignored by the Python interpreter. Comments may be single line or no multi-lines. The multiline comments should be enclosed within a set of:-
# as given below.
# It is Single line Comment
# It is multiline comment
which contains more than one line #

Question 28.
Give the flowchart for ‘for loop’ execution?

Question 29.
What is the output of the following snippet?
i=1
while True:
if i%3 =0:
break
print(i,end=”)
i +=1 Output:
12

Question 30.
Give the syntax for break, continue, pass?
Syntax:
break

Syntax:
continue

Syntax:
pass

Question 31.
Fill the Table with appropriate values?

Question 32.
Give the 3 different syntax formats for deleting the elements from a list?
Syntax:
del List [index of an element]
# to delete a particular element
del List [index from: index to]
# to delete multiple elements del List
# to delete entire list

Question 33.
What is the output of the following program?
class Sample:
_num=10
def disp(self):
print(self._num)
S=Sample( )
S.disp( )
print(S._num)
Output:
Error Sample has no attribute S._num
10

PART – IV

Answer all the questions. [5 × 5 = 25]

Question 34(a).
Describe in detail the procedure script mode programming?
Basically, a script is a text file containing the Python statements. Python Scripts are reusable code. Once the script is created, it can be executed again and again without retyping. The Scripts are editable.

Creating Scripts in Python:
(I) Choose File —> New File or press Ctrl + N in Python shell window.

(II) An untitled blank script text editor will be displayed on screen

(III) Type the following code in Script editor

a =100
b = 350
c = a + b
print (“The Sum=”, c)

Saving Python Script:

(I) Choose File → Save or Press Ctrl + S

(II) Now, Save as dialog box appears on the screen

(III) In the Save As dialog box, select the location where you want to save your Python code, and type the file name in File Name box. Python files are by default saved with extension .py. Thus, while creating Python scripts using Python Script editor, no need to specify the file extension.

(IV) Finally, click Save button to save your Python script.

Executing Python Script:-
(I) Choose Run → Run Module or Press F5

(II) If your code has any error, it will be shown in red color in the IDLE window, and Python describes the type of error occurred. To correct the errors, go back to Script editor, make corrections, save the file using Ctrl + S or File → Save and execute it again.

(III) For all error free code, the output will appear in the IDLE window of python

[OR]

(b) Explain data types in python?
Python Data types:
All data values in Python are objects and each object or value has type. Python has Built-in or Fundamental data types such as Number, String, Boolean, tuples, lists and dictionaries.

Number Data type:
The built-in number objects in Python supports integers, floating point numbers and complex numbers.

Integer Data can be decimal, octal or hexadecimal. Octal integer use O (both upper and lower case) to denote octal digits and hexadecimal integer use OX (both upper and lower case) and L (only upper case) to denote long integer.

Example :

A floating point data is represented by a sequence of decimal digits that includes a decimal point. An Exponent data contains decimal digit part, decimal point, exponent part followed by one or more digits.

Example :

Complex number is made up of two floating point values, one each for the real and imaginary parts.

Boolean Data type:
A Boolean data can have any of the two values: True or False.

Example :
Bool_var1=True
Bool_var2=False

String Data type:
String data can be enclosed with single quote or double quote or triple quote.

Example:
Char_data = ‘A’
String_data= “Computer Science”
Multiline_data= “““String data can be enclosed with single quote or double quote or triple quote.”””

Question 35(a).
Write a program to calculate the sum of numbers from 1 to 100?
n = 100 sum = 0
for counter in range( 1 ,n+1):
sum = sum + counter
print(“Sum of 1 until %d: %d” % (n,sum))

Output:
Sum of 1 until 100: 5050

[OR]

(b) Write a program to replace a string with another string without replace ( )?
s1 = input(“Enter the-string to be replaced : “)
s2 = input(“Enter the string to replace with “)
s1 = s2
print(“Replaced string is “, si)

Output:
Enter the string to be replaced: Computer
Enter the string to replace with: repcomputer
Replaced string is repcomputer

Question 36(a).
Write a program using class to accept 3 sides of a triangle and print its area?
class Tr:
def init (self, a, b, c):
self.a = float(a)
self.b = float(b)
self.c = float(c)
def area(self):
s = (self.a + self.b + self.c)/2
return((s*(s-self.a) * (s-self.b) * (s-self.c) ** 0.5))
a = input(“Enter side 1:”)
b = input(“Enter side2:”)
c = input(“Enter side3:”)
ans=Tr(a,b,c)
print(ans.area())

Output:
Enter side 1 : 3 Enter side 2:4 Enter side 3 : 5

[OR]

(b) Explain different types of DBMS users?
Database Administrator or DBA is the one who manages the complete database management system. DBA takes care of the security of the DBMS, managing the license keys, managing user accounts and access etc.

(II) Application Programmers or Software Developers:
This user group is involved in developing and designing the parts of DBMS.

(III) End User:
End users are the one who store, retrieve, update and delete data.

(IV) Database designers:
Are responsible for identifying the data to be stored in the database for choosing appropriate structures to represent and store the data.

Question 37 (a).
Explain various components of DBMS?
The Database Management System can be divided into five major components as follows:

1. Hardware
2. Software
3. Data
4. Procedures/Methods
5. Database Access Languages

1. Hardware:
The computer, hard disk, I/O channels for data, and any other physical component involved in storage of data

2. Software:
This main component is a program that controls everything. The DBMS software is capable of understanding the Database Access Languages and interprets into database commands for execution.

3. Data:
It is that resource for which DBMS is designed. DBMS creation is to store and utilize data.

4. Procedures/Methods:
They are general instructions to use a database management system such as installation of DBMS, manage databases to take backups, report generation, etc.

5. DataBase Access Languages:
They are the languages used to write commands to access, insert, update and delete data stored in any database.

[OR]

(b) Differentiate IN and NOTIN in SQL using sample commands? IN Keyword?
The IN keyword is used to specify a list of values which must be matched with the record values. In other words it is used to compare a column with more than one value. It is similar to an OR condition.

For example :
SELECT Admno, Name, Place FROM Student WHERE Place IN (“Chennai”, “Delhi”);

 Adm No Name Place 100 Ashish Chennai 101 Adarsh Delhi 103 Ayush Delhi 104 Abinandh Chennai 105 Revathi Chennai 107 Hema Chennai

NOT IN:
The NOT IN keyword displays only those records that do not match in the list.

For example:
SELECT Admno, Name, Place FROM Student WHERE Place NOT IN (“Chennai”, “Delhi”); will display students only from places other than “Chennai” and “Delhi”.

Question 38 (a).
Explain various python file modes?

 Adm No Name Place 102 Akshith Bangalore 106 Devika Bangalore

[OR]

(b) Explain getopt ( ) in python?
Python getopt module:
The getopt module of Python helps you to parse (split) command-line options and arguments. This module provides two functions to enable command-line argument parsing, getopt.getopt method

This method parses command-line options and parameter list. Following is the syntax for this method
=getopt.getopt( argv, options, {long_options])
Here is the detail of the parameters –

getopt( ) method returns value consisting of two elements. Each of these values are stored separately in two different list (arrays) opts and args .Opts contains list of splitted strings like mode, path and args contains any string if at all not splitted because of wrong path or mode, args will be an empty array if there is no error in splitting strings by getopt( ). For example The Python code which is going to execute the C++ file p4 in command line will have the getopt Q method like the following one. opts, args = getopt.getopt (argv, “i:”,[‘ifile=’])

>>>print(args)
[ ]
Some more command for wrapping C++ code

if _name _==’_main_’;
main(sys.argv[l:])
_name_(A Special variable) in Python

Since there is no main( ) function in Python, when the command to run a Python program is given to the interpreter, the code that is at level 0 indentation is to be executed. However, before doing that, interpreter will define a few special variables. _name_ is one such special variable which by default stores the name of the file.

If the source file is executed as the main program, the interpreter sets the _name_ variable to have a value as ” main ” name is a built-in variable which evaluates to the name of the current module. Thus it can be used to check whether the current script is being run on its own.

For example consider the following
if_name_==’_main_’:
main(sys.argv[1:])
if the command line Python program itself is going to execute first, then _main_ contains the name of that Python program and the Python special variable _name_ also contain the Python program name. If the condition is true it calls the main which is passed with C++ file as argument.

## Tamil Nadu 12th Computer Science Model Question Paper 1 English Medium

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## TN State Board 12th Computer Sceince Model Question Paper 1 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 15 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 16 to 24 in Part II are two-mark questions. These are to be answered in about one or two sentences.
6. Question numbers 25 to 33 in Part III are three-mark questions. These are to be answered in about three to five short sentences.
7. Question numbers 34 to 38 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3 Hours
Maximum Marks: 70

PART – 1

Choose the correct answer. Answer all the questions: [15 × 1 = 15]

Question 1.
The duration for which a variable is alive is ………………..
(a) Scale
(b) Life time
(c) Static
(d) Function
(b) Life time

Question 2.
………………. describes the lower bound of an algorithm.
(a) Big Ω
(b) Big Θ
(c) Big O
(d) Big ⊗
(a) Big Ω

Question 3.
How many types of operators are there?
(a) 2
(b) 3
(c) 4
(d) 5
(d) 5

Question 4.
The keys in python, dictionary is specified by ……………..
(a) =
(b) ;
(c) +
(d) :
(d) :

Question 5.
…………….. is used to access an element in a list.
(a) Element
(b) i
(c) Index
(d) Tuple
(c) Index

Question 6.
The command to delete a table is ………………..
(a) Drop
(b) Delete
(c) Delete all
(d) Alter table
(a) Drop

Question 7.
‘skipinitialspace’ is used for removing ……………….. after delimiter.
(a) White spaces
(b) Double quotes
(c) Comma
(d) Colon
(a) White spaces

Question 8.
List literals are written using ………………
(a) [ ]
(b) ( )
(c) { }
(d) <>
(a) [ ]

Question 9.
What does ……………… name ………………. contains?
(a) C++ file name
(b) Main ( ) name
(c) Python file name
(d) OS module name
(c) Python file name

Question 10.
Which of the following clause avoid the duplicates?
(a) Distinct
(b) Remove
(c) Where
(d) Group by
(a) Distinct

Question 11.
Which function returns the smallest value of the selected columns?
(a) Min ( )
(b) Minimum ( )
(c) Small ( )
(d) Least ( )
(a) Min ( )

Question 12.
Which is a python package used for 2D graphics?
(a) Matplotlib.pyplot
(b) Matplotlib.pip
(c) Matplotlib.numpy
(d) Matplotlib.plt
(a) Matplotlib.pyplot

Question 13.
Skipping of first row heading in CSV file is given by ………………
(a) Skip
(b) Next
(c) Forward
(d) More
(b) Next

Question 14.
Which mode is used when dealing with non-text files like images or exe files?
(a) Text
(b) Word
(c) Binary
(d) Exe
(c) Binary

Question 15.
In python _ del _ ( ) method is used as …………….
(a) Delete
(b) Drop
(c) Truncate
(d) Destructor
(d) Destructor

PART – II

Answer any six questions. Question No. 21 is compulsory. [6 × 2 = 12]

Question 16.
Who is an Algorist?

1. A person skilled in the design of algorithms are called as Algorist.
2. An algorithmic artist.

Question 17.
What is a repeating operator?
The multiplication operator (*) is used to display a string in multiple number of times.

Question 18.
Write note on dictionary comprehensions?
In Python, comprehension is another way of creating dictionary. The following is the syntax of creating such dictionary.
Syntax
Dict = { expression for variable in sequence [if condition] }

Question 19.
What is the output of the following snippet?
T=1
while T:
print(True)
break
(a) False
(b) True
(c) 0
(d) No output
(d) No output

Question 20.
List the control structures in python?
There are three important control structures

1. Sequential
2. Alternative or Branching
3. Iterative or Looping

Question 21.
Pick the correct one to execute the given statement successfully, if_: print(x, ” is a leap year”)
(a) x % 2 = 0
(b) x % 4 = = 0
(c) x/4 = 0
(d) x % 4 = 0
(b) x % 4 = = 0

Question 22.
What are the 4 types of function arguments?

1. Required arguments
2. Keyword arguments
3. Default arguments
4. Variable-length arguments

Question 23.
Find output:
C = 65
Print (chr (C))
Output:
A

Question 24.
Give the positive and negative index for list [10, 23, 41]
Positive: 0 1 2
Negative: -3 -2 -1

PART – III

Answer any six questions. Question No. 29 is compulsory. [6 × 3 = 18]

Question 25.
Write a python program to check smallest of 3 numbers?
num1 = int (input(“Enter first number : “))
num2 = int (input(“Enter second number : “))
num3 = int (input(“Enter third number : “))
if (num1 < num2) and (num1 < num3):
smallest=num1
elif (num2 < num1) and (num2 < num3):
smallest=num2
else:
smallest=num3
print(” The smallest number is”, smallest)

Output:
Enter first number : 12
Enter second number : 7
Enter third number : 15
The smallest number is 7

Question 26.
Write a note on count ( ) function?

Question 27.
What are the advantages of user – defined functions?

1. Functions help us to divide a program into modules. This makes the code easier to manage.
2. It implements code reuse. Every time you need to execute a sequence of statements, all you need to do is to call the function.
3. Functions, allows us to change functionality easily, and different programmers can work on different functions.

Question 28.
Write note on min ( ), max ( ), sum ( ) functions?

Question 29.
What is the use of append ( ) and extend ( ) functions in python?
In Python, append() function is used to add a single element and extend() function is used to add more than one element to an existing list.

Syntax:

Question 30.
Define Nested list, give example for it?
In the below example, Mylist contains another list as an element. This type of list is known as “Nested List”.
Nested list is a list containing another list as an element.
Example: Mylist = [ “Welcome”, 3.14, 10, [2, 4, 6] ]

Question 31.
Define list. How will you represent rational numbers with list?
List is constructed by placing expressions within square brackets separated by commas. Such an expression is called a list literal. List can store multiple values. Each value can be of any type and can even be another list. Example for List is [10, 20].

Representing Rational Numbers Using List:
You can now represent a rational number as a pair of two integers in pseudo code: a numerator and a denominator
rational(n, d):
return [n, d]
numer(x):
return x[0]
denom(x):
return x[l]

Question 32.
Define memoization?
Memoization or memoisation is an optimization technique used primarily to speed up computer programs by storing the results of expensive function calls and returning the cached result when the same inputs occur again.

Question 33.
Mention any 6 keywords?

1. False
2. None
3. True
4. And
5. As
6. Assert

PART – IV

Answer all the following questions. [5 × 5 = 25]

Question 34 (a).
Explain the pseudo code to do Binary search?

• If the search element is equal to the middle element of the array i.e., the middle value = number of elements in array/2, then return the index of the middle element.
• If not, then compare the middle element with the search value.
• If the search element is greater than the number in the middle index, then select the elements to the right side of the middle index, and go to Step-1.
• If the search element is less than the number in the middle index, then select the elements to the left side of the middle index, and start with Step-1.

(II) When a match is found, display success message with the index of the element matched.

(III) If no match is found for all comparisons, then display unsuccessful message.

[OR]

(b) Give the pseudo code for insertion sort?
Step 1 – If it is the first element, it is already sorted.
Step 2 – Pick next element.
Step 3 – Compare with all elements in the sorted sub-list.
Step 4 – Shift all the elements in the sorted sub-list that is greater than the value to be sorted
Step 5 – Insert the value
Step 6 – Repeat until list is sorted

Question 35 (a).
Explain input function with example?
input( ) function:
In Python, input( ) function is used to accept data as input at run time. The syntax for input( ) function is,
Variable = input (“prompt string ’’)

Where, prompt string in the syntax is a statement or message to the user, to know what input can be given. If a prompt string is used, it is displayed on the monitor; the user can provide expected data from the input device. The input( ) takes whatever is typed from the keyboard and stores the entered data in the given variable. If prompt string is not given in input( ) no message is displayed on the screen, thus, the user will not know what is to be typed as input.

Example: input( ) with prompt string
>>> city=input (“Enter Your City: ”)
>>> print (“I am from”, city)

Example: input( ) without prompt string
>>> city=input( )
Rajarajan
>>> print (“I am from”, city)
I am from Rajarajan

Note that in example-2, the input( ) is not having any prompt string, thus the user will not know what is to be typed as input. If the user inputs irrelevant data as given in the above example, then the output will be unexpected. So, to make your program more interactive, provide prompt string with input( ).

The input ( ) accepts all data as string or characters but not as numbers. If a numerical value is entered, the input values should be explicitly converted into numeric data type.

The int ( ) function is used to convert string data as integer data explicitly. We will learn about more such functions in later chapters.

Example:
x = int (input(“Enter Number 1: ”))
y = int (input(“Enter Number 2: ”))
print (“The sum = ”, x+y)
Output:
Enter Number 1 : 34
Enter Number 2 : 56
The sum = 90

Example: Alternate method for the above program
x,y=int (input(“Enter Number 1 :”)),int(input(“Enter Number 2:”))
print (“X = “,x,” Y = “,y)
Output:
Enter Number 1:30
Enter Number 2:50
X = 30 Y = 50

[OR]

(b) Explain various types of Relationships in dBMS?
Following are the types of relationships used in a database.

1. One-to-One Relationship
2. One-to-Many Relationship
3. Many-to-One Relationship
4. Many-to-Many Relationship

1. One-to-One Relationship
In One-to-One Relationship, one entity is related with only one other entity. One row in a table is linked with only one row in another table and vice versa.
For example: A student can have only one exam number

2. One-to-Many Relationship
In One-to-Many relationship, one entity is related to many other entities.
One row in a table A is linked to many rows in a table B, but one row in a table B is linked to only one row in table A.
For example: One Department has many staff members.

3. Many-to-One Relationship
In Many-to-One Relationship, many entities can be related with only one in the other entity. For example: A number of staff members working in one Department.
Multiple rows in staff members table is related with only one row in Department table.

4. Many-to-Many Relationship
A many-to-many relationship occurs when multiple records in a table are associated with multiple records in another table.

Example 1: Customers and Product
Customers can purchase various products and Products can be purchased by many customers.

Example 2: Students and Courses A student can register for many Courses and a Course may include many students.

Example 3: Books and Student.
Many Books in a Library are issued to many students.

Question 36 (a).
Write a menu driven program that keeps record of books available in school library?
class Library:
def init (self):
self.bookname=” ”
self.author=””

def getdata(self):
self.bookname = input(“Enter Name of the Book: “)
self.author = input(“Enter Author of the Book: “)

def display(self):
print(“Name of the Book: “,self.bookname)
print(“Author of the Book: “,self.author)
print(“\n”)

book=[ ] #empty list
ch = ‘y’

while(ch==’y’):
print(” 1. Add New Book \n 2.Display Books”)
resp = int(input(“Enter your choice : “))

if(resp==1):
L=Library( )
L.getdata( )
book.append(L)

elif(resp=2):
for x in book:
x.display( )

else:
print(“Invalid input….”)
ch = input(“Do you want continue….”)

Output:

2. Display Books Enter your choice : 1

Enter Name of the Book: Programming in C++
Enter Author of the Book: K. Kannan
Do you want continue….y

2. Display Books Enter your choice : 1

Enter Name of the Book: Learn Python
Enter Author of the Book: V.G.Ramakrishnan
Do you want continue….y

2. Display Books

Enter Name of the Book: Advanced Python
Enter Author of the Book: Dr. Vidhya
Do you want continue….y

2. Display Books

Enter Name of the Book: Working with OpenOffice
Enter Author of the Book: N.V.Gowrisankar
Do you want continue….y

2. Display Books

Enter Name of the Book: Data Structure
Enter Author of the Book: K.Lenin
Do you want continue….y

2. Display Books

Enter Name of the Book: An Introduction to Database System
Enter Author of the Book: R.Sreenivasan
Do you want continue….y

2. Display Books

Name of the Book: Programming in C++
Author of the Book: K. Kannan
Name of the Book: Learn Python
Author of the Book: V.G.Ramakrishnan
Name of the Book: Advanced Python
Author of the Book: Dr. Vidhya
Name of the Book: Working with OpenOffice
Author of the Book: N.V.Gowrisankar
Name of the Book: Data Structure
Author of the Book: K.Lenin
Name of the Book: An Introduction to Database System
Author of the Book: R.Sreenivasan
Do you want continue….n

[OR]

(b) Write a program to accept a string and print the number of upper case, vowels, consonants and spaces in the giving string?
class String:
def _init_(self):
self.uppercase=0
self.lowercase=0
self.vowels=0
self.consonants=0
self.spaces=0
self.string=””

def getstr(self):
self.string=str(input(“Enter a String: “))

def countupper(self):
for ch in self.string:
if (ch.isupper()):
self.uppercase+=1

def count_lower(self):
for ch in self.string:
if (ch.islower()):
self.lowercase+= 1

def count_vowels(self):
for ch in self.string:
if (ch in (‘A’, ‘a’, ‘e’, ‘E’, ‘i’, T, ’o’, ‘O’, T, ‘L’)):
self.vowels+=1

def countconsonants(self):
for ch in self.string:
if (ch not in (‘A’, ’a’, ‘e’, ‘E’, ‘i’, T, ‘o’, ‘O’, T, ’L’)):
self.consonants+= 1

def countspace(self):
for ch in self.string:
if (ch=””):
self.spaces+=1

def execute(self):
self.count_upper( )
self.count_lower( )
self. count_vowels( )
self.count_consonants( )
self.count_space( )

def display(self):
print(“The given string contains…”)
print(“%d Uppercase letters”%self.uppercase)
print(“%d Lowercase letters”%self.lowercase)
print(“%d Vowels”%self. vowels)
print(“%d Consonants”%self.consonants)
print(“%d Spaces”%self.spaces)
S = String( )
S.getstr( )
S.execute( )
S.display( )

Output:
Enter a String: Welcome To Learn Computer Science
The given string contains…
5 Uppercase letters
24 Lowercase letters
13 Vowels
20 Consonants
4 Spaces

Question 37(a).
Explain python getopt module?
The getopt module of Python helps you to parse (split) command-line options and arguments. This module provides two functions to enable command-line argument parsing.
getopt.getopt method
This method parses command-line options and parameter list. Following is the syntax for this method –
<opts> ,<args>=getopt.getopt (argv, options, [long options])
Here is the detail of the parameters –

argv – This is the argument list of values to be parsed (splited). In our program the complete command will be passed as a list.
options – This is string of option letters that the Python program recognize as, for input or for output, with options (like ‘i’ or ‘o’) that followed by a colon (:). Here colon is used to denote the mode.

longoptions – This parameter is passed with a list of strings. Argument of Long options should be followed by an equal sign (‘=’). In our program the C++ file name will be passed as string and ‘i’ also will be passed along with to indicate it as the input file.

getopt( ) method returns value consisting of two elements. Each of these values are stored separately in two different list (arrays) opts and args. Opts contains list of splitted strings like mode, path and args contains any string if at all not splitted because of wrong path or mode. args will be an empty array if there is no error in splitting strings by getopt( ).

For example The Python code which is going to execute the C++ file p4 in command line will have the getopt() method like the following one.
opts, args = getopt.getopt (argv, “i:”,[‘ifile=’])

In our examples since the entire command line commands are parsed and no leftover argument, the second argument args will be empty [ ]. If args is displayed using print( ) command it displays the output as [ ].
>>>print(args)
[ ]

[OR]

(b) Write a sql code using where clause to display the different grades scored by male students from student table?
The WHERE clause is used to extract only those records that fulfill a specified condition. In this example we are going to display the different grades scored by male students from “student table” import sqlite3
cursor = connection.cursor( )
cursor.execute(” SELECT DISTINCT (Grade) FROM student where gender=’M”‘)
result = cursor.fetchall( )
print(*result,sep=”\n”)
OUTPUT
(‘B’,)
(‘A’,)
(C’,)
(D’,)

Question 38 (a).
Write a program that accept data using python input ( ) command and write it in the Table called person?
In this example we are going to accept data using Python input() command during runtime and then going to write in the Table called “Person”

Example:
# code for executing query using input data import sqlite3
# creates a database in RAM
cur =con.cursor( )
cur.execute(“DROP Table person”)
cur.execute(“create table person (name, age, id)”)
print(“Enter 5 students names:”)
who =[input( ) for i in range(5)]
print(“Enter their ages respectively:”)
age =[int(input()) for i in range(5)]
print(“Enter their ids respectively:”)
p_id =[int(input())for i in range(5)]
n =len(who)
for i in range(n):
# This is the q-mark style:
cur.execute(“insert into person values (?, ?, ?)”, (who[i], age[i], p_id[i]))
# And this is the named style: cur.execute(“select * from person”)
# Fetches all entries from table
print(“Displaying All the Records From Person Table”)
print (*cur.fetchall( ), sep-\n’)

Output:
Enter 5 students names:
RAM
KEERTHANA
KRISHNA
HARISH
GIRISH

Enter their ages respectively:
28
12
21

Enter their ids respectively:
1
2
3
4
5

Displaying All the Records From Person Table
(‘RAM’, 28, 1)
(’KEERTHANA’, 12, 2)
(’KRISHNA1, 21,3)
(‘HARISH’, 18,4)
(‘GIRISH’, 16, 5)

You can even add records to the already existing table like “Student” Using the above coding with appropriate modification in the Field Name. To do so you should comment the create table statement

[OR]

(b) Write a CSV file with a line terminator?
A Line Terminator is a string used to terminate lines produced by writer. The default value is \r or \n. We can write csv file with a line terminator in Python by registering new dialects using csv.register_dialect( ) class of csv module.
For Example
import csv
Data = [[‘Fruit’, ‘Quantity’], [‘Apple’, ‘5’], [‘Banana’, ‘7’], [‘Mango’, ‘8’]]
csv.register_dialect(‘myDialect’, delimiter = ‘|’, lineterminator = ‘\n’)
with open(‘c:\\pyprg\\chl3\\line.csv’, ‘w’) as f:
writer = csv.writer(f, dialect=‘myDialect’)
writer.writerows(Data)
f.close( )
When we open the line.csv file, we get following output with spacing between lines:

In the above code, the new dialect “myDialect uses the delimiter=‘|’ where a | (pipe) is considered as column separator. The line terminator=‘\r\n\r\n’ separates each row and display the data after every two lines.

## Tamil Nadu 12th Economics Model Question Paper 5 English Medium

Students can Download Tamil Nadu 12th Economics Model Question Paper 5 English Medium Pdf, Tamil Nadu 12th Economics 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 12th Economics Model Question Paper 5 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: 3.00 Hours
Maximum Marks: 90

PART – I

Question 1.
Macro economics is a study of …………
(a) Individuals
(b) firms
(c) nations
(d) aggregates
(d) aggregates

Question 2.
State whether the statements are true or false.
(i) Profit Motive of Capitalist Economy.
(ii) Basic problems are solved by customs and traditions.
(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
(c) (i) is true but (ii) is false

Question 3.
………. is also known as Disposable Personal Income.
(a) Personal Income
(b) Disposable Income
(c) Consumer Income
(d) Product Income
(b) Disposable Income

Question 4.
Assertion (A): National Income is a measure of the total value of the goods and services produced in an economy for a year.
Reason (R): GNP – is the total value of output produced and income received in a year by domestic residence of a country.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’

Question 5.
The basic concept used in Keynes Theory of Employment and Income is
(a) Aggregate demand
(b) Aggregate supply
(c) Effective demand
(d) Marginal Propensity Consume
(c) Effective demand

Question 6.
State whether the statements are true or false.
(i) Keynesian theory is – Aggregate demand – Aggregate supply approach. Saving – Investment approach.
(ii) This approach explained the determination level of Income and employment.
(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
(a) Both (i) and (ii) are true

Question 7.
It the MPC is 0.5, the multiplier is……..
(a) 2
(b) 1/2
(c) 0.2
(d) 20
(a) 2

Question 8.
Which of the following is correctly matched:
(a) Aftalion – 1909
(b) Hawtrey – 1914
(c) Bickerdike – 1915
(d) J.M. Clark – 1916
(a) Aftalion – 1909

Question 9.
MV stands for………….
(a) demand for money
(b) supply of legal tender money
(c) supply of bank money
(d) total supply of money
(b) supply of legal tender money

Question 10.
The modern economy is described as………….
(a) Demand Economy
(b) Supply Economy
(c) Money Economy
(d) Wage Economy
(c) Money Economy

Question 11.
EXIM bank was established in……………
(a) June 1982
(b) April 1982
(c) May 1982
(d) March 1982
(d) March 1982

Question 12.
Match the following and choose the correct answer by using codes given below:

Code:

(b) A-4, B-3, C-1, D-2

Question 13.
(a) Import and export of invisible items only
(b) Import and export of both visible and invisible items
(c) Import of visible items only
(d) Import and export of visible items only
(d) Import and export of visible items only

Question 14.
Which of the following is correctly matched:
(a) SDR – Special Drawing Rights
(b) IMF – India Monetary Fund
(c) BOP – Balance of Price
(d) BOT – Balance of Technology
(a) SDR – Special Drawing Rights

Question 15.
The word budget has been derived from the French word “bougette” which means:……….
(a) A small bag
(b) An empty box
(c) A box with papers
(d) None of the above
(a) A small bag

Question 16.
Assertion (A): Canons of Taxation are Economical, Equitable, Convenient, Certain Efficient and Flexible.
Reason (R): Adam Smiths four canons of taxation are Canon of Ability, Canon of Certainty, Canon of Convenience, Canon of Economy.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’

Question 17.
Which one of the following causes of global warming?
(a) Earth gravitation force
(b) Oxygen
(c) Centripetal force
(d) Increasing temperature
(d) Increasing temperature

Question 18.
Heavy machineries located inside big factories and industrial plants also emit pollutants into the ………..
(a) land
(b) soil
(c) air
(d) water
(c) air

Question 19.
Match the following and choose the correct answer by using codes given below:

Code:

(a) A-2, B-1, C-4, D-3

Question 20.
Econometrics is the amalgamation of
(a) 3 subjects
(b) 4 subjects
(c) 2 subjects
(d) 5 subjects
(a) 3 subjects

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 × 2 = 14]

Question 21.
Write the Disposable Income.

1. Disposable Income is also known as Disposable personal income.
2. It is the individuals income after the payment of income tax.
3. This is the amount available for households for consumption.

Question 22.
Write a short note on “Educational Unemployment”.

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

Question 23.
Write the Accelerator Assumptions.
Assumptions:

1. Absence of excess capacity in consumer goods industries.
2. Constant capital – output ratio
3. Increase in demand is assumed to be permanent
4. Supply of funds and other inputs is quite elastic
5. Capital goods are perfectly divisible in any required size.

Question 24.
Explain disinflation.
Disinflation: Disinflation is the slowing down the rate of inflation by controlling the amount of credit (bank loan, hire purchase) available to consumers without causing more unemployment. Disinflation may be defined as the process of reversing inflation without creating unemployment or reducing output in the economy.

Question 25.
Write the meaning of Money supply.

1. In India, currency notes are issued by the Reserve Bank of India (RBI) and coins are issued by the Ministry of Finance, Government of India (GOI).
2. Besides these, the balance is savings, or current account deposits, held by the public in commercial banks is also considered money.
3. The currency notes are also called fiat money and legal tenders.

Question 26.
Define Commercial banks.
Commercial bank refers to a bank, or a division of a large bank, which more specifically deals with deposit and loan services provided to corporations or large/middle-sized business – as opposed to individual members of the public/small business.

Question 27.
Define “Cash Reserve Ratio”.

1. Under this system the Central Bank controls credit by changing the Cash Reserves Ratio.
2. For example, if the Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit,this will be harmful for the larger interest of the economy.
3. So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank.

Question 28.
Write a brief note on flexible exchange rate.
Flexible Exchange Rates: Under the flexible exchange rate (also known as floating exchange rate) system, exchange rates are freely determined in an open market by market forces of demand and supply.

Question 29.

1. WTC headquarters located at New York, USA.
2. It featured the landmark Twin Towers which was established on 4th April 1973.
3. Later it was destroyed on 11th September 2001 by the craft attack.
4. It brings together businesses involved in international trade from around the globe.

Question 30.
Define “Public Revenue”.

1. Public revenue occupies an important place in the study of public finance.
2. The Government has to perform several functions for the welfare of the people.
3. They involve substantial amount of public expenditure which can be financed only through public revenue.
4. The amount of public revenue to be raised depends on the necessity of public expenditure and the people’s ability to pay.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
Write a note on Mixed Economy.
Mixed Economy (Mixedism):

1. In a mixed economy system both private and public sectors co-exist and work together towards economic development.
2. It is a combination of both capitalism and socialism. It tends to eliminate the evils of both capitalism and socialism.
3. In these economies, resources are owned by individuals and the government.
4. India, England, France and Brazil are the examples of mixed economy.

Question 32.
Define the term “Household sector”.

1. The household sector is the sole buyer of goods and services, and the sole supplier of factors of production, i.e., land, labour, capital and organisation.
2. It spends its entire income on the purchase of goods and services produced by the business sector.
3. The household sector receives income from firm sector by providing the factors of production owned by it.

Question 33.
List out the assumptions of Say’s law.
The Say’s Law of market is based on the following assumptions:

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

Question 34.
Aggregate Supply Function meaning and components.
Aggregate supply function is an increasing function of the level of employment. Aggregate supply refers to the value of total output of goods and services produced in an economy in a year. In other words, aggregate supply is equal to the value of national product, i.e., national income.
The components of aggregate supply are:

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

Question 35.
State the concept of super multiplier.
Super Multiplier: (k and p interaction)

1. The super multiplier is greater than simple multiplier which includes only autonomous investment and no induced investment, while super multiplier includes induced investment.
2. In order to measure the total effect of initial investment on income, Hicks has combined the k and p mathematically and given it the name of the Super Multiplier.
3. The super multiplier is worked out by combining both induced consumption and induced investment.

Question 36.
Explain the primary functions of money.
(i) Money as a medium of exchange:
This is considered as the basic function of money. Money has the quality of general acceptability, and all exchanges take place in terms of money.

(ii) Money as a measure of value:
The second important function of money is that it measures the value of goods and services. In other words, the prices of all goods and services are expressed in terms of money. Money is thus looked upon as a collective measure of value.

Question 37.
Distinguish between CRR and SLR.

 S.No. CRR SLR 1. The Central Bank controls credit by changing the Cash Reserv es Ratio. Statutory Liquidity Ratio (SLR) is the amount which a bank has to maintain in the form of cash, gold or approved securities. 2. Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit, this will be harmful for the larger interest of the economy. The quantum is specified as some percentage of the total demand and time liabilities. 3. So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank. The liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one month’s time due to maturity.

Question 38.
Assumptions:

1. There are two countries and two commodities (2 × 2 model).
2. Labour is the only factor of production.
3. Labour units are homogeneous.
4. The cost or price of a commodity is measured by the amount of labour required to produce it.
5. There is no transport cost.

Question 39.
Explain the major achievements of WTO.
The major achievements of WTO are as follows

1. Use of restrictive measures for BoP problems has declined markedly;
2. Services trade has been brought into the multilateral system and many countries, as in goods, are opening their markets for trade and investment;
3. The trade policy review mechanism has created a process of continuous monitoring of trade policy developments.

Question 40.
State and explain instruments of fiscal policy.
Fiscal Instruments:
Fiscal Policy is implemented through fiscal instruments also called ‘fiscal tools’ or fiscal levers: Government expenditure, taxation and borrowing are the fiscal tools.
(i) Taxation:

1. Taxes transfer income from the people to the Government.
2. Taxes are either direct or indirect.
3. An increase in tax reduces disposable income.
4. So taxation should be raised to control inflation.
5. During depression, taxes are to be reduced.

(ii) Public Expenditure:

1. Public expenditure raises wages and salaries of the employees and thereby the aggregate demand for goods and services.
2. Hence public expenditure is raised to fight recession and reduced to control inflation

(iii) Public debt:

1. When Government borrows by floating a loan, there is transfer of funds from the public to the Government.
2. At the time of interest payment and repayment of public debt, funds are transferred from Government to public.

PART – IV

Answer all the questions. [7 × 5 = 35]

Question 41 (a).
Briefly explain the objective factors of consumption functions.
Objective Factors:
(i) Income Distribution:
If there is large disparity between rich and poor, the consumption is low because the rich people have low propensity to consume and high propensity to save.

(ii) Price level:

• Price level plays an important role in determining the consumption function.
• When the price falls, real income goes up; people will consume more and propensity to save of the society increases.

(iii) Wage level:

• Wage level plays an important role in determining the consumption function and there is positive relationship between wage and consumption.
• Consumption expenditure increases with the rise in wages.
• Similar is the effect with regard to windfall gains.

(iv) Interest rate:

• Rate of interest plays an important role in determining the consumption function.
• Higher rate of interest will encourage people to save more money and reduces consumption.

(v) Fiscal Policy:
When government reduces the tax the disposable income rises and the propensity to consume of community increases.

(vi) Consumer credit:

• The availability of consumer credit at easy installments will encourage households to buy consumer durables like automobiles, fridge, computer.
• This pushes up consumption.

(vii) Demographic factors:

• Ceteris paribus, the larger the size of the family, the grater is the consumption.
• Besides size of family, stage in family life cycle, place of residence and occupation affect the consumption function.

(viii) Duesenberry hypothesis:
Duesenberry has made two observations regarding the factors affecting consumption.

• The consumption expenditure depends not only on his current income but also past income and standard of living.
• Consumption is influenced by demonstration effect. The consumption standards of low income groups are influenced by the consumption standards of high income groups..

(ix) Windfall Gains or losses:
Unexpected changes in the stock market leading to gains or losses tend to shift the consumption function upward or downward.

[OR]

(b) Explain the keynes psycological law of consumption asumptions.
Keynes’s Law is based on the following assumptions:
(i) Ceteris paribus (constant extraneous variables):
The other variables such as income distribution, tastes, habits, social customs, price movements, population growth, etc. do not change and consumption depends on income alone.

(ii) Existence of Normal Conditions:

• The law holds good under normal conditions.
• If, however, the economy is faced with abnormal and extraordinary circumstances like war, revolution or hyperinflation, the law will not operate.
• People may spend the whole of increased income on consumption.

(iii) Existence of a Laissez-faire Capitalist Economy:

• The law operates in a rich capitalist economy where there is no government intervention.
• People should be free to spend increased income.
• In the case of regulation of private enterprise and consumption expenditures by the State, the law breaks down.

Question 42 (a).
What are the effects of Inflation on the Economy?
The effects of inflation can be classified into two heads:

1. Effects on Production and
2. Effects on Distribution.

1. Effects on Production:
When the inflation is veiy moderate, it acts as an incentive to traders and producers. This is particularly prior to full employment when resources are not fully utilized. The profit due to rising prices encourages and induces business class to increase their investments in production, leading to generation of employment and income.

• However, hyper-inflation results in a serious depreciation of the value of money.
• When the value of money undergoes considerable depreciation, this may even drain out the foreign capital already invested in the country.
• With reduced capital accumulation, the investment will suffer a serious set-back which may have an adverse effect on the volume of production in the country.
• Inflation also leads to hoarding of essential goods both by the traders as well as the consumers and thus leading to still higher inflation rate.
• Inflation encourages investment in speculative activities rather than productive purposes.

2. Effects on Distribution:

• Debtors and Creditors: During inflation, debtors are the gainers while the creditors are losers.
• Fixed-income Groups: The fixed income groups are the worst hit during inflation because their incomes being fixed do not bear any relationship with the rising cost of living.
• Entrepreneurs: Inflation is the boon to the entrepreneurs whether they are manufacturers, traders, merchants or businessmen, because it serves as a tonic for business enterprise.
• Investors: The investors, who generally invest in fixed interest yielding bonds and securities have much to lose during inflation.

[OR]

(b) Describe the functions of IDBI.
Functions of IDBI:

1. The functions of IDBI fall into two groups (i) Assistance to other financial institutions; and (ii) Direct assistance to industrial concerns either on its own or in participation with other institutions.
2. The IDBI can provide refinance in respect of term loans to industrial concerns given by the IFC, the SFCs, other financial institutions notified by the Government, scheduled banks and state cooperative banks.
3. A special feature of the IDBI is the provision for the creation of a special fund known as the Development Assistance Fund.
4. The fund is intended to provide assistance to industries which require heavy investments with low anticipated rate of return.
5. Such industries may not be able to get assistance in the normal course.
6. The financing of exports was also undertaken by the IDBI till the establishment of EXIM BANK in March, 1982.

Question 43 (a).
Describe the subject matter of International Economics.
Subject Matter of International Economics:
The subject matter of International Economics includes large number of segments which are
classified into the following parts.
1. Pure Theory of Trade: This component explains the causes for foreign trade, composition, direction and volume of trade, determination of the terms of trade and exchange rate, issues related to balance of trade and balance of payments.

2. Policy Issues: Under this part, policy issues such as free trade vs. protection, methods of regulating trade, capital and technology flows, use of taxation, subsidies and dumping, exchange control and convertibility, foreign aid, external borrowings and foreign direct investment, measures of correcting disequilibrium in the balance of payments etc are covered.

3. International Cartels and Trade Blocs: This part deals with the economic integration in
the form of international cartels, customs unions, monetary unions, trade blocs, economic unions and the like. It also discusses the operation of Multi National Corporations (MNCs).

4. International Financial and Trade Regulatory Institutions: The financial institutions like International Monetary Fund IMF, IBRD, WTO etc which influence international economic transactions and relations shall also be the part of international economics.

[OR]

(b) Bring out the components of balance of payments account.
Components of BOPs:
The credit and debit items are shown vertical lv in the BOP account of a country. Horizontally, they are divided into three categories, i.e.

1. The current account,
2. The capital account and
3. The official settlements account or official reserve assets account.

1. The Current Account: It includes all international trade transactions of goods and services, international service transactions (i.e. tourism, transportation and royalty fees) and international unilateral transfers (i.e. gifts and foreign aid).

2. The Capital Account: Financial transactions consisting of direct investment and purchases of interest-bearing financial instruments, non-interest bearing demand deposits and gold fall under the capital account.

3. The Official Reserve Assets Account: Official reserve transactions consist of movements of international reserves by governments and official agencies to accommodate imbalances arising from the current and capital accounts.

The official reserve assets of a country include its gold stock, holdings of its convertible foreign currencies and Special Drawing Rights (SDRs) and its net position in the International Monetary Fund (IMF).

Question 44 (a).
1. Trade blocks cover different kinds of arrangements between or among countries for mutual benefit. Economic integration takes the form of Free Trade Area, Customs Union, Common Market and Economic Union.

2. A free trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, e.g. SAFTA, EFTA.

3. A customs union is defined as a type of trade block which is composed of a free trade area with no tariff among members and (zero tariffs among members) with a common external tariff, e.g. BENELUX (Belgium, Netherland and Luxumbuarg).

4. Common market is established through trade pacts. A group formed by countries within a geographical area to promote duty free trade and free movement of labour and capital among its members, e.g. European Common Market (ECM).

5. An economic union is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production and a common external trade policy, (e.g. European Economic Union).

[OR]

(b) Briefly explain the achievements of SAARC.
Achievements of SAARC:

1. The establishment of SAARC Preferential Trading Agreement (SAPTA) and reduction in tariff and non-tariff barriers on imports.
2. The setting up of Technical Committees for economic cooperation among SAARC countries relating to agriculture, communications, education, health and population, rural development, science and technology, tourism, etc.
3. SAARC has established a three-tier mechanism for exchanging information on poverty reduction programmes which is passed on to member countries.
4. SAARC Agricultural Information Centre (SAIC) in 1988 works as a central information institution for agriculture related resources like fisheries, forestry, etc.
5. South Asian Development Fund (SADF) for development projects, human resource development and infrastructural development projects. With all these tall claims, the inter- SAARC Trade has not gone beyond three percent in the last 30 years.

Question 45 (a).
Explain the methods of debt redemption.
The process of repaying a public debt is called redemption. The Government sells securities to the public and at the time of maturity, the person who holds the security surrenders it to the Government. The following methods are adopted for debt redemption.
(i) Sinking Fund:

• Under this method, the Government establishes a separate fund known as “Sinking Fund”.
• The Government credits every year a fixed amount of money to this fund.
• By the time the debt matures, the fund accumulates enough amount to pay off the principal along with interest.
• This method was first introduced in England by Walpol.

(ii) Conversion:

• Conversion of loans is another method of redemption of public debt.
• It means that an old loan is converted into a new loan.
• Under this system a high interest public debt is converted into a low interest public debt.
• Dalton felt that debt conversion actually relaxes the debt burden.

(iii) Budgetary Surplus:

• When the Government presents surplus budget, it can be utilised for repaying the debt.
• Surplus occurs when public revenue exceeds the public expenditure.
• However, this method is rarely possible.

(iv) Terminal Annuity:

• In this method, Government pays off the public debt on the basis of terminal annuity in
equal annual installments. .
• This is the easiest way of paying off the public debt.

(v) Repudiation:

• It is the easiest way for the Government to get rid of the burden of payment of a loan.
• In such cases, the Government does not recognise its obligation to repay the loan.
• It is certainly not paying off a loan but destroying it.
• However, in normal case the Government does not do so; if done it will lose its credibility.

(vi) Reduction in Rate of Interest:
Another method of debt redemption is the compulsory reduction in the rate of interest, during the time of financial crisis.

(vi) Capital Levy:

1. When the Government imposes levy on the capital assets owned by an individual or any institution, it is called capital levy.
2. This levy is imposed on capital assets above a minimum limit on a progressive scale.
3. The fund so collected can be used by the Government for paying off war time debt obligations.
4. This is the most controversial method of debt repayment.

[OR]

(b) Describe the various types of deficit in budget.
The Indian Government budget, budget deficit is of four major types.

1. Revenue Deficit
2. Budget Deficit
3. Fiscal Deficit, and
4. Primary Deficit

1. Revenue Deficit:
It refers to the excess of the government revenue expenditure over revenue receipts. It does not consider capital receipts and capital expenditure. Revenue deficit implies that the government is living beyond its means to conduct day-to-day operations.
Revenue Deficit (RD) = Total Revenue Expenditure (RE) – Total Revenue Receipts (RR) When RE – RR > 0

2. Budget Deficit:
Budget deficit is the difference between total receipts and total expenditure (both revenue and capital)
Budget Deficit = Total Expenditure – Total Revenue

3. Fiscal Deficit:
Fiscal deficit (FD) = Budget deficit + Government’s market borrowings and liabilities

4. Primary Deficit:
Primary deficit is equal to fiscal deficit minus interest payments. It shows the real burden of the government and it does not include the interest burden on loans taken in the past. Thus, primary deficit reflects borrowing requirement of the government exclusive of interest payments.
Primary Deficit (PD) = Fiscal deficit (PD) – Interest Payment (IP)

Question 46 (a).
Briefly explain classification of Public expenditure.
Classification of public expenditure are as follows:
(i) Classification on the Basis of Benefit:
Cohn and Plehn have classified the public expenditure on the basis of benefit into four classes:

• Public expenditure benefiting the entire society, e.g., the expenditure on general administration, defence, education, public health, transport.
• Public expenditure conferring a special benefit on certain people and at the same time common benefit on the entire community, e.g., administration of justice etc.
• Public expenditure directly benefiting particular group of persons and indirectly the entire society, e.g., social security, public welfare, pension, unemployment relief etc.
• Public expenditure conferring a special benefit on some individuals, e.g., subsidy granted to a particular industry.

(ii) Classification on the Basis of Function:
Adam Smith classified public expenditure on the basis of functions of government in the ‘ following main groups:

• Protection Functions: This group includes public expenditure incurred on the security of the citizens, to protect from external invasion and internal disorder, e.g., defence, police, courts etc.
• Commercial Functions: This group includes public expenditure incurred on the development of trade and commerce, e.g., development of means of transport and communication etc.
• Development Functions: This group includes public expenditure incurred for the development infrastructure and industry.

[OR]

(b) Explain Balanced and Unbalanced Budget.
Balanced Budget
Balanced budget is a situation, in which estimated revenue of the government during the year is equal to its anticipated expenditure.

Unbalanced Budget
The budget in which Revenue & Expenditure are not equal to each other is known as Unbalanced Budget.
Unbalanced budget is of two types:

1. Surplus Budget
2. Deficit Budget

1. Surplus Budget
The budget is a surplus budget when the estimated revenues of the year are greater than anticipated expenditures.

2. Deficit Budget
Deficit budget is one where the estimated government expenditure is more than expected revenue.

Question 47 (a).
Write a note on
(a) Climate change and
(b) Acid rain.
(a) Climate Change:
The climate change refers to seasonal changes over a long period with respect to the growing accumulation of greenhouse gases in the atmosphere.

Recent studies have shown that human activities since the beginning of the industrial revolution, have contributed to an increase in the concentration of carbon dioxide in the atmosphere by as much as 40%, from about 280 parts per million in the pre-industrial period, to 402 parts per million in 2016, which in turn has led to global warming.

Several parts of the world have already experienced the warming of coastal waters, high temperatures, a marked change in rainfall patterns, and an increased intensity and frequency of storms. Sea levels and temperatures are expected to be rising.

(b) Acid Rain:

1. Acid rain is one of the consequences of air pollution.
2. It occurs when emissions from factories, cars or heating boilers contact with the water in the atmosphere.
3. These emissions contain nitrogen oxides, sulphur dioxide and sulphur trioxide which when mixed with water becomes sulfurous acid, nitric acid and sulfuric acid.
4. This process also occurs by nature through volcanic eruptions.
5. It can have harmful effects on plants, aquatic animals and infrastructure.

[OR]

(b) Discuss the economic determinants of economic development Economic Factors?
Economic Factors:
1. Natural Resource: The principal factor affecting the development of an economy is the availability of natural resources. The existence of natural resources in abundance is essential for development.

2. Capital Formation: Capital formation is the main key to economic growth. Capital formation refers to the net addition to the existing stock of capital goods which are either tangible like plants and machinery or intangible like health, education and research.

3. Size of the Market: Large size of the market would stimulate production, increase employment and raise the National per capita income. That is why developed countries expand their market to other countries through WTO.

4. Structural Change: Structural change refers to change in the occupational structure of the economy. Any economy of the country is generally divided into three basic sectors: Primary sector such as agricultural, animal husbandry, forestry, etc; Secondary sector such as industrial production, constructions and Tertiary sector such as trade, banking and commerce.

5. Financial System: Financial system implies the existence of an efficient and organized banking system in the country.

6. Marketable Surplus: Marketable surplus refers to the total amount of farm output cultivated by farmers over and above their family consumption needs. This is a surplus that can be sold in the market for earning income.

7. Foreign Trade: The country which enjoys favorable balance of trade and terms of trade is always developed. It has huge forex reserves and stable exchange rate.

8. Economic System: The countries which adopt free market mechanism (laissez faire) enjoy better growth rate compared to controlled economies.

## Tamil Nadu 12th Economics Model Question Paper 4 English Medium

Students can Download Tamil Nadu 12th Economics Model Question Paper 4 English Medium Pdf, Tamil Nadu 12th Economics 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 12th Economics 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: 3.00 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions: [20 × 1 = 20]

Question 1.
An economic system where the economic activities of a nation are done both by the private and public together is termed as……….
(a) Capitalistic Economy
(b) Socialistic Economy
(c) Globalisic Economy
(d) Mixed Economy
(d) Mixed Economy

Question 2.
In a socialist economy, all decisions regarding production and distribution are taken by
(a) market forces
(b) central planning authority
(d) private sector
(b) central planning authority

Question 3.
State whether the statements are true or false.
(i) Capitalism and Socialism are same approaches.
(ii) Capitalism and Socialism are two extreme and opposite approaches.
(a) Both (i) and (ii) are true
(b) Both (ii) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
(d) (i) is false but (ii) is true

Question 4.
Net National product at factor cost is also known as………….
(a) National Income
(b) Domestic Income
(c) Per capita Income
(d) Salary
(a) National Income

Question 5.
……….. helps to build economic models both in short run and long run.
(a) National Income
(b) Personal Income
(c) Per Capita Income
(d) State Income
(d) State Income

Question 6.
Match the following and choose the correct answer by using codes given below:

Code:

(a) A-2, B-1, C-4, D-3

Question 7.
Assertion (A): The Income method is called Factor Earning Method.
Reason (R): This method approaches National Income from the distribution side.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’

Question 8.
Keynes theory pursues to replace, laissez faire by……….
(a) No government intervention
(b) Maximum intervention
(c) State intervention in certain situation
(d) Private sector intervention
(c) State intervention in certain situation

Question 9.
……….. defines “Full employment as that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices”
(a) Lerner
(b) J.M. Keynes
(c) J.B. Say
(a) Lerner

Question 10.
State whether the statements are true or false.
(i) The function of money is a medium of exchange on the one side and a store of value on the other side is called Keynesianism. ‘
(ii) Macro approach to national problems.
(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (i) is false but (ii) is true
(a) Both (i) and (ii) are true

Question 11.
The multiplier tells us how much……….changes after a shift in………..
(a) Consumption, income
(b) investment, output
(c) savings, investment
(d) output, aggregate demand
(d) output, aggregate demand

Question 12.
(a) J.M. Keynes
(b) J.M. Clark
(c) R.F. Khan
(d) Marshall
(b) J.M. Clark

Question 13.
Which of the following is correctly matched:
(a) Aggregate Income – C
(b) Consumption expenditure – IA
(c) Autonomous Investment – Y
(d) Induced Private Investment – IP
(d) Induced Private Investment – IP

Question 14.
During depression the level of economic activity becomes extremely………..
(a) high
(c) low
(d) good
(c) low

Question 15.
Online Banking is also known as …………
(a) E-Banking
(b) Internet Banking
(c) RTGS
(d) NEFT
(b) Internet Banking

Question 16.
Fixed Deposits are otherwise known as
(a) Bank Deposits
(b) Customer’s Deposits
(c) Time Deposits
(d) Money Deposits
(c) Time Deposits

Question 17.
IMF is a prerequisite to become a member of
(a) SDR
(b) SAF
(c) World Bank
(d) SAF
(c) World Bank

Question 18.
Environmental goods are ………….
(a) Market goods
(b) Non-market goods
(c) Both
(d) None of the above
(b) Non-market goods

Question 19.
Expansion of NITI Aayog?
(a) National Institute to Transform India
(b) National Institute for Transforming India
(c) National Institution to Transform India
(d) National Institution for Transforming India
(d) National Institution for Transforming India

Question 20.
Which of the following is not correctly matched:
(a) Financial planning
(b) NITI Aayog
(c) Seven pillars of effective governance
(d) Physical planning
(c) Seven pillars of effective governance

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 × 2 = 14]

Question 21.
Explain the Expenditure Method (Outlay Method) precautions. Precautions

1. Second hand goods: The expenditure made on second hand goods should not be included.
2. Purchase of shares and bonds: Expenditures on purchase of old shares and bonds in the secondary market should not be included.
3. Transfer payments: Expenditures towards payment incurred by the government like old age pension should not be included.
4. Expenditure on intermediate goods: Expenditure on seeds and fertilizers by farmers, cotton and yam by textile industries are not to be included to avoid double counting. That is only expenditure on final products are to be included.

Question 22.
Give short note on frictional unemployment.
Frictional Unemployment (Temporary Unemployment) :
Frictional unemployment arises due to imbalance between supply of labour and demand for labour. This is because of immobility of labour, lack of necessary skills, break down of machinery, shortage of raw materials etc. The persons who lose jobs and in search of jobs are also included under frictional unemployment.

Question 23.
Define Marginal Propensity to Save (MPS).
Marginal Propensity to Save (MPS):
Marginal Propensity to Save is the ratio of change in saving to a change in income. MPS is obtained by dividing change in savings by change in income. It can be expressed algebraically as
MPS = $$\frac{ΔS}{ΔY}$$
ΔS = Change in Saving;
ΔY = Change in Income
Since MPC + MPS = 1
MPS = 1 – MPC and MPC = 1 – MPS

Question 24.
What is the meaning of trade cycle?
A Trade cycle refers to oscillations in aggregate economic activity particularly in employment, output, income, etc. It is due to the inherent contraction and expansion of the elements which energize the economic activities of the nation. The fluctuations are periodical, differing in intensity and changing in its coverage.

Question 25.
What is the meaning of Open Market Operations?
In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

Question 26.
What is credit creation?
Credit Creation means the multiplication of loans and advances. Commercial banks receive deposits from the public and use these deposits to give loans: However, loans offered are many times more than the deposits received by banks. This function of banks is known as ‘Credit Creation’.

Question 27.
State any two merits of trade.

1. Trade is one of the powerful forces of economic integration.
2. The term ‘trade’ means exchange of goods, wares or merchandise among people.

Question 28.
What is Secular Disequilibrium?
Secular Disequilibrium: The secular or long-run disequilibrium in BOP occurs because of long-run and deep seated changes in an economy as it advances from one stage of growth to another. In the initial stages of development, domestic investment exceeds domestic savings and imports exceed exports, as it happens in India since 1951.

Question 29.
Who are “dialogue partners”?
The ASEAN, there are six “dialogue partners” which have been participating in its deliberations. They are China, Japan, India, South Korea, New Zealand and Australia.

Question 30.
Mention the indicators of development.

1. Economic development is regarded as a process whereby there is an increase in the consumption of goods and services by individuals.
2. From the welfare perspective, economic development is defined as a sustained improvement in health, literacy and standard of living.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Enumerate the features of mixed economy.
Features of Mixed Economy:
1. Ownership of Property and Means of Production: The means of production and properties are owned by both private and public. Public and Private have the right to purchase, use or transfer their resources.

2. Coexistence of Public and Private Sectors: In mixed economies, both private and public sectors coexist. Private industries undertake activities primarily for profit. Public sector firms are owned by the government with a view to maximize social welfare.

3. Economic Planning: The central planning authority prepares the economic plAnswer: National plans are drawn up by the Government and both private and public sectors abide. In general, all sectors of the economy function according to the objectives, priorities and targets laid down in the plan.

4. Solution to Economic Problems: The basic problems of what to produce, how to produce, for whom to produce and how to distribute are solved through the price mechanism as well as state intervention.

5. Freedom and Control: Though private has freedom to own resources, produce goods and services and distribute the same, the overall control on the economic activities rests with the government.

Question 32.
What is the solution to the problem of double counting in the estimation of national income?

1. The value obtained is actually the GNP at market prices. Care must be taken to avoid double counting.
2. The value of the final product is derived by the summation of all the values added in the productive process.
3. To avoid double counting, either the value of the final output should be taken into the estimate of GNP or the sum of values added should be taken.
4. Double counting is to be avoided under value added method.
5. Any commodity which is either raw material or intermediate good for the final production should not be included.
6. For example, value of cotton enters value of yam as cost, and value of yam in cloth and that of cloth in garments.
7. At every stage value added only should be calculated.

Question 33.
Mention the expenditure method (or) out-lay method.
The Expenditure Method (Outlay method): The total expenditure incurred by the society in a particular year is added together. To calculate the expenditure of a society, it includes personal consumption expenditure, net domestic investment, government expenditure on consumption as well as capital goods and net exports. Symbolically,
GNP = C + I + G + (X – M)
C – Private consumption expenditure
I – Private Investment Expenditure
G – Government expenditure
X – M = Net exports

Question 34.
Discuss the estimating the national income through the Income Method precautions.

1. Transfer payments are not to be included in estimation of national income as these payments are not received for any services provided in the current year such as pension, social insurance etc.
2. The receipts from the sale of second hand goods should not be treated as part of national income as they do not create new flow of goods or services in the current year.
3. Windfall gains such as lotteries are also not to be included as they do not represent receipts from any current productive activity.
4. Corporate profit tax should not be separately included as it has been already included as a part of company profit.

Question 35.
Specify the limitations of the multiplier.

1. There is change in autonomous investment.
2. There is no induced investment
3. The marginal propensity to consume is constant.
4. Consumption is a function of current income.
5. There are no time lags in the multiplier process.
6. Consumer goods are available in response to effective demand for them.
7. There is a closed economy unaffected by foreign influences.
8. There are no changes in prices.
9. There is less than full employment level in the economy.

Question 36.
Explain the uses of multiplier.
Uses of multiplier

1. Multiplier highlights the importance of investment in income and employment theory.
2. The process throws light on the different stages of trade cycle.
3. It also helps in bringing the equality between S and I.
4. It helps in formulating Government policies.
5. It helps to reduce unemployment and achieve full employment.

Question 37.
Write a note on metallic money.

1. After the barter system and commodity money system, modem money systems evolved.
2. Among these, metallic standard is the premier one.
3. Under metallic standard, some kind of metal either gold or silver is used to determine the standard value of the money and currency.
4. Standard coins made out of the metal are the principal coins used under the metallic standard.
5. These standard coins are full bodied or full weighted legal tender.
6. Their face value is equal to their intrinsic metal value.

Question 38.
What is the meaning of Crypto currency?
Crypto Currency:
A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a Central Bank,

Decentralised crypto currencies such as Bitcoin now provide an outlet for Personal Wealth that is beyond restriction and confiscation.

Question 39.
Write the TRIPs agreement.
Agreement on Trade Related Intellectual Property Rights (TRIPs):

1. Intellectual Property Rights include copy right, trade marks, patents, geographical indications, trade secrets, industrial designs, etc.
2. TRIPS Agreement provides for granting product patents instead of process patents.
3. The period of protection will be 20 years for patents, 50 years for copy rights, 7 years for trade marks and 10 years for layout designs.
4. As a result of TRIPS, the dependence of LDCs on advanced countries for seeds, drugs, fertilizers and pesticides has increased.
5. Farmers are depending on the industrial firm for their seeds.

Question 40.
What is Crony capitalism?
Social Organization:

1. People show interest in the development activity only when they feel that the fruits of development will be fairly distributed.
2. Mass participation in development programs is a pre-condition for accelerating the ‘ development process.
3. Whenever the defective social organization allows some groups to appropriate the benefits of growth.
4. Majority of the poor people do not participate in the process of development.
5. This is called crony capitalism.

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
Explain the Aggregate Demand Function with Diagram.
In the Keynesian model, output is determined mainly by aggregate demand. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed.

Therefore, it is the expected income or revenue from the sale of output at different levels of employment.
Aggregate demand has the following four components:

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

The desired or planned demand (spending) is the amount that households, firms, the governments and the foreign purchasers would like to spend on domestic output.

In other words, desired demand in the economy is the sum total of desired private consumption expenditure, desired investment expenditure, desired government spending and desired net exports (difference between exports and imports). Thus, the desired spending is called aggregate spending (demand), and can be expressed as:
AD = C + I + G + (X – M)
The diagram explains that aggregate demand price increases or decreases with an increase or decrease in the volume of employment. Aggregate demand curve increases at an increasing rate in the beginning and then increases at a decreasing rate.

This shows that as income increases owing to increase in employment, expenditure of the economy increases at a decreasing rate.

[OR]

(b) Describe the Effective demand.

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

Question 42 (a).
Illustrate the working of Multiplier.
Working of Multiplier:
1. Suppose the Government undertakes investment expenditure equal to Rs 100 crore on some public works, by way of wages, price of materials etc.
2. Thus income of labourers and suppliers of materials increases by Rs 100 crore. Suppose the MPC is 0.8 that is 80 %.
3. A sum of Rs 80 crores is spent on consumption (A sum of Rs 20 Crores is saved).
4. As a result, suppliers of goods get an income of Rs 80 crores.
5. They intum spend Rs 64 crores (80% of Rs 80 cr).
In this manner consumption expenditure and increase in income act in a chain like manner. The final result is ΔY = 100 + 100 × 4/5 + 100 × [4/5]² + 100 × [4/5]³ or,
ΔY = 100 + 100 × 0.8 + 100 × (0.8)² + 100 × (0.8)³
= 100 + 80+ 64 + 51.2… = 500
that is 100 × 1/1 – 4/5
100 × 1/1/5
100 × 5 = Rs 500 crores
For instance if C = 100 + 0.8Y, I = 100,
Then Y = 100+ 0.8Y + 100
0. 2Y = 200
Y = 200/0.2 = 1000 → Point B
If I is increased to 110, then
0. 2Y = 210
Y = 210/0.2 = 1050 → Point D
For Rs 10 increase in I, Y has increased by Rs 50.
This is due to multiplier effect.
At point A, Y = C = 500
C = 100 + 0.8 (500) = 500; S = 0
At point B, Y = 1000
C = 100 + 0.8 (1000) = 900; S = 100 = I
At point D, Y = 1050
C = 100 + 0.8 (1050) = 940; S = 110 = I
When I is increased by 10, Y increases by 50.
This is multiplier effect (K = 5)
K = $$\frac{1}{0.2}$$ = 5

[OR]

(b) Explain about Marginal Efficiency of Capital [MEC] short run factors and long run factors.
(a) Short – Run Factors
(i) Demand for the product:

• If the market for a particular good is expected to grow and its costs are likely to fall, the rate of return from investment will be high.
• If entrepreneurs expect a fall in demand for goods and a rise in cost, the investment will decline.

(ii) Liquid assets:

• If the entrepreneurs are holding large volume of working capital, they can take advantage of the investment opportunities that come in their way.
The MEC will be high.

(iii) Sudden changes in income:

• The MEC is also influenced by sudden changes in income of the entrepreneurs.
• If the business community gets windfall profits, or tax concession the MEC will be high and hence investment in the country will go up.
• On the other hand, MEC falls with the decrease in income.

(iv) Current rate of investment:

• Another factor which influences MEC is the current rate of investment in a particular industry.
• If in a particular industry, much investment has already taken place and the rate of investment currently going on in that industry is also very large, then the marginal efficiency of capital will be low.

(v) Waves of optimism and pessimism:

1. The marginal efficiency of capital is also affected by waves of optimism and pessimism in the business cycle.
2. If businessmen are optimistic about future, the MEC will be likely to be high.
3. During periods of pessimism the MEC is under estimated and so will be low.

(b) Long – Run Factors
The long run factors which influence the marginal efficiency of capital are as follows:
(i) Rate of growth of population:

• Marginal efficiency of capital is also influenced by the rate of growth of population.
• If population is growing at a rapid speed, it is usually believed that the demand of various types of goods will increase.
• So a rapid rise in the growth of population will increase the marginal efficiency of capital and a slowing down in its rate of growth will discourage investment and thus reduce marginal efficiency of capital.

(ii) Technological progress:

• If investment and technological development take place in the industry, the prospects of increase in the net yield brightens up.
• For example, the development of automobiles in the 20th century has greatly stimulated the rubber industry, the steel and oil industry etc.
• So we can say that inventions and technological improvements encourage investment in various projects and increase marginal efficiency of capital.

(iii) Monetary and Fiscal policies:
Cheap money policy and liberal tax policy pave the way for greater profit margin and so MEC is likely to be high.

(iv) Political environment:
Political stability, smooth administration, maintenance of law and order help to improve MEC.

(v) Resource availability:
Cheap and abundant supply of natural resources, efficient labour and stock of capital enhance the MEC.

Question 43 (a).
Briefly explain the Monetary Economics and money.
Monetary Economics is a branch of economics that provides a framework for analyzing money and its functions as a medium of exchange, store of value and unit of account. It examines the effects of monetary systems including regulation of money and associated financial institutions.

Meaning

1. Money is anything that is generally accepted as payment for goods and services and repayment of debts and that serves as a medium of exchange.
2. A medium of exchange is anything that is widely accepted as a means of payments.
3. In recent years, the importance of credit has increased in all the countries of the world.
4. Credit instruments are used on an extensive scale.
5. The use of cheques, bills of exchange, etc., has gone up.
6. It should however, be remembered that money is the basis of credit.

[OR]

(b) What are the objectives of Monetary Policy? Explain.
The specific objectives of monetary policy are Objectives of monetary policy:

1. Neutrality of Money
2. Stability of Exchange Rates
3. Price Stability
4. Full Employment
5. Economic Growth
6. Equilibrium in the Balance of Payments

1. Neutrality of Money:

• Economists like Wicksteed, Hayek and Robertson are the chief exponents of neutral money.
• They hold the view that monetary authority should aim at neutrality of money in the economy.
• Monetary changes could be the root cause of all economic fluctuations.
• According to neutralists, the monetary change causes distortion and disturbances in the proper operation of the economic system of the country.

2. Exchange Rate Stability:

• Exchange rate stability was the traditional objective of monetary authority.
• This was the main objective under Gold Standard among different countries.
• When there was disequilibrium in the balance of payments of the country, it was automatically corrected by movements.

3. Price Stability:

• Economists like Crustave Cassel and Keynes suggested price stabilization as a main objective of monetary policy.
• Price stability is considered the most genuine, objective of monetary policy.
• Stable prices repose public confidence,
• It promotes business activity and ensures equitable distribution of income and wealth.

4. Full Employment:

• During world depression, the problem of unemployment had increased rapidly.
• It was regarded as socially dangerous, economically wasteful and morally deplorable.
• Thus, full employment was considered as the main goal of monetary policy.

5. Economic Growth:

• Economic growth is the process whereby the real per capita income of a country increases over a long period of time.
• It implies an increase in the total physical or real output, production of goods for the satisfaction of human wants.
• Monetary policy should promote sustained and continuous economic growth by maintaining equilibrium between the total demand for money and total production capacity and further creating favourable conditions for saving and investment.

6. Equilibrium in the Balance of Payments:
Equilibrium in the balance of payments is another objective of monetary policy which emerged significant in the post war years.

Question 44 (a).
What do you mean by balance of payments?
Balance of Payments (BOP):
1. BoP is a systematic record of a country’s economic and financial transactions with the rest of the world over a period of time.

2. When a payment is received from a foreign country, it is a credit transaction while a payment to a foreign country is a debit transaction.

3. The principal items shown on the credit side are exports of goods and services, transfer receipts in the form of gift etc., from foreigners, borrowing from abroad, foreign direct investment and official sale of reserve assets including gold to foreign countries and international agencies.

4. The principal items on the debit side include imports of goods and services, transfer payments to foreigners, lending to foreign countries, investments by residents in foreign countries and official purchase of reserve assets or gold from foreign countries and international agencies.

[OR]

(b) Explain the relationship between Foreign Direct Investment and economic development.
Foreign Direct Investment (FDI) and Trade:

1. FDI is an important factor in global economy.
2. Foreign trade and FDI are closely related. In developing countries like India
3. FDI in the natural resource sector, including plantations, increases trade volume.
4. Foreign production by FDI is useful to substitute foreign trade. .
5. FDI is also influenced by the income generated from the trade and regional integration schemes.
6. FDI is helpful to accelerate the economic growth by facilitating essential imports needed for carrying out development programmes like capital goods, technical know-how, raw materials and other inputs and even scarce consumer goods.
7. FDI may be required to fill the trade gap.
8. FDI is encouraged by the factors such as foreign exchange shortage, desire to create employment and acceleration of the pace of economic development.
9. Many developing countries strongly prefer foreign investment to imports.
10. However, the real impact of FDI on different sections of an economy.

Question 45 (a).
Describe the Types of Terms of Trades.
The different concepts of terms of trade were classified by Gerald M.Meier into the following three categories:
Terms of Trade related to the Ratio of Exchange between Commodities:

1. Net Barter Terms of Trade:
This type was developed by Taussig in 1927. The ratio between the prices of exports and of imports is called the “net barter terms of trade’. It is named by Viner as the ‘commodity terms of trade’.
It is expressed as:
Tn = (Px / Pm) × 100
Where,
Tn = Net Barter Terms of Trade
Px = Index number of export prices
Pm = Index number of import prices
This is used to measure the gain from international trade. If ‘Tn’ is greater than 100, then it is a favourable terms of trade which will mean that for a rupee of export, more of imports can be received by a country.

2. Gross Barter Terms of Trade:
This was developed by Taussig in 1927 as an improvement over the net terms of trade. It is an index of relationship between total physical quantity of imports and the total physical quantity of exports.
Tg = (Qm / Qx) × 100
Where,
Qm = Index of import quantities
Qx = Index of export quantities
If for a given quantity of export, more quantity of import can be consumed by a country, then one can say that terms of trade are favourable.

The income terms of trade was given by G.S.Dorrance in 1948. It is the index of the value of exports divided by the price index for imports multiplied by quantity index of experts. In other words, it is the net barter terms of trade of a country multiplied by its exports- volume index.
Ty = (Px / Pm ) Qx
Where,
Px = Price index of exports
Pm = Price index of imports
Qx = Quantity index of exports

[OR]

(b) Write a note on ‘BRICS’.
BRICS:

1. BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
2. Since 2009, the BRICS nations have met annually at formal summits.
3. South Africa hosted the 10th BRICS summit in July 2018.
4. The agenda for BRICS summit 2018 includes Inclusive growth, Trade issues, Global governance, Shared Prosperity, International peace and security.
5. It’s headquarters is at Shanghai, China.
6. The New Development Bank (NDB) formerly referred to as the BRICS Development Bank was established by BRICS States.
7. The first BRICS summit was held at Moscow and South Africa hosted the Tenth Conference at Johanesberg in July 2018.
8. India had an opportunity of hosting fourth and Eighth summits in 2009 and 2016 respectively.
9. The BRICS countries make up 21 percent of global GDP. They have increased their share of global GDP threefold in the past 15 years.
10. The BRICS are home to 43 percent of the world’s population.
11. The BRICS countries have combined foreign reserves of an estimated \$4.4 trillion

Question 46 (a).
Bringout the objectives of SAARC.
Objectives of SAARC:
According to Article I of the Charter of the SAARC, the objectives of the Association are as follows:

1. To promote the welfare of the people of South Asia and improve their quality of life;
2. To accelerate economic growth, social progress and cultural development in the region;
3. To promote and strengthen collective self-reliance among the countries of South Asia;
4. To contribute to mutual trust, understanding and appreciation of one another’s problems;
5. To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields;
6. To strengthen co-operation with other developing countries;
7. To strengthen cooperation among themselves in international forums on matters of common interest;
8. To cooperate with international and regional organisations with similar aims and purposes.

[OR]

(b) Explain the principles of federal finance.
Principles of Federal Finance:
In the case of federal system of finance, the following main principles must be applied:

1. Principle of Independence.
2. Principle of Equity.
3. Principle of Uniformity.
5. Principle of Fiscal Access.
6. Principle of Integration and coordination.
7. Principle of Efficiency.
9. Principle of Accountability.

1. Principle of Independence:

• Under the system of federal finance, a Government should be autonomous and free about the internal financial matters concerned.
• It means each Government should have separate sources of revenue, authority to levy taxes, to borrow money and to meet the expenditure.
• The Government should normally enjoy autonomy in fiscal matters.

2. Principle of Equity:
From the point of view of equity, the resources should be distributed among the different states so that each state receives a fair share of revenue.

3. Principle of Uniformity:
In a federal system, each state should contribute equal tax payments for federal finance.

4. Principle of Adequacy of Resources:

• The principle of adequacy means that the resources of each Government i.e. Central and State should be adequate to carry out its functions effectively.
• Here adequacy must be decided with reference to both current as well as future needs.
• Besides, the resources should be elastic in order to meet the growing needs and unforeseen expenditure like war, floods etc.

5. Principle of Fiscal Access:

• In a federal system, there should be possibility for the Central and State Governments to develop new source of revenue within their prescribed fields to meet the growing financial needs.
• In nutshell, the resources should grow with the increase in the responsibilities of the Government.

6. Principle of Integration and coordination:

• The financial system as a whole should be well integrated.
• There should be perfect coordination among different layers of the financial system of the country.
• Then only the federal system will survive.
• This should be done in such a way to promote the overall economic development of the country.

7. Principle of Efficiency:

• The financial system should be well organized and efficiently administered.
• Double taxation should be avoided.

• Economy is the important criterion of any federal financial system.
• That is, the cost of collection should be at the minimum level and the major portion of revenue should be made available for the other expenditure outlays of the Governments.

9. Principle of Accountability:
Each Government should be accountable to its own legislature for its financial decisions i.e. the Central to the Parliament and the State to the Assembly.

Question 47 (a).
What are the similarities of Public and Private Finance?
(i) Rationality:

• Both public finance and private finance are based on rationality.
• Maximization of welfare and least cost factor combination underlie both.

(ii) Limit to borrowing:

• Both have to apply restraint with regard to borrowing.
• The Government also cannot live beyond its means.
• There is a limit to deficit financing by the state also.

(iii) Resource utilisation:

• Both the private and public sectors have limited resources at their disposal.
• So both attempt to make optimum use of resources.

• The effectiveness of measures of the Government as well as private depends on the administrative machinery.
• If the administrative machinery is inefficient and corrupt it will result in wastages and losses.

[OR]

(b) What are the functions of NITI Aayog?
Functions of NITI Aayog:

1. Cooperative and Competitive Federalism: To enable the States to have active participation in the formulation of national policy.
2. Shared National Agenda: To evolve a shared vision of national development priorities and strategies with the active involvement of States.
3. Decentralized Planning: To restructure the planning process into a bottom-up model.
4. Vision and Scenario Planning: To design medium and long-term strategic frameworks towards India’s future.
5. Network of Expertise: To mainstream external ideas and expertise into government policies and programmes through a collective participation.
6. Harmonization: To facilitate harmonization of actions across different layers of government, especially when involving cross-cutting and overlapping issues across multiple sectors; through communication, coordination, collaboration and convergence amongst all the stakeholders.
7. Conflict Resolution: To provide platform for mutual consensus to inter-sectoral, inter¬departmental, inter-state as well as centre-state issues for all speedy execution of the government programmes.
8. Coordinating Interface with the World: It will act nodal point to harness global expertise and resources coming from International organizations for India’s developmental process.
9. Internal Consultancy: It provides internal consultancy to Central and State governments on policy and programmes.
10. Capacity Building: It enables to provide capacity building and technology up-gradation across government, benchmarking with latest global trends and providing managerial and technical know-how.
11. Monitoring and Evaluation: It will monitor the implementation of policies and progammes and evaluate the impacts.

## Tamil Nadu 12th Economics Model Question Paper 3 English Medium

Students can Download Tamil Nadu 12th Economics Model Question Paper 3 English Medium Pdf, Tamil Nadu 12th Economics 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 12th Economics Model Question Paper 3 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: 3.00 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions: [20 x 1 = 20]

Question 1.
The branches of the subject Economics is………….
(a) Wealth and welfare
(b) production and consumption
(c) Demand and supply
(d) micro and macro
(d) micro and macro

Question 2.
………. is another name for economics.
(a) Political economy
(b) Socialist economy
(c) Capitalist economy
(d) Planned economy
(a) Political economy

Question 3.
Income method is measured by summing up of all forms of…………
(a) Revenue
(b) Taxes
(c) expenditure
(d) Income
(d) Income

Question 4.
Match the following and choose the correct answer by using codes given below:

Code:

(d) A-3, B-4, C-1, D-2+

Question 5.
According to classical theory, rate of interest is a reward for………..
(a) Investment
(b) Demand
(c) Capital
(d) Saving
(d) Saving

Question 6.
Which of the following is not correctly matched:
(a) Say’s law of Market – Classical theory of Employment
(b) Adam Smith – Wealth of nations
(c) Keynes – The General theory of Employment, Interest and Money
(d) A.C. Pigou – French Economist
(d) A.C. Pigou – French Economist

Question 7.
When investment is assumed autonomous the slope of the AD schedule is determined by the…………
(a) marginal propensity to invest
(b) disposable income .
(c) marginal propensity to consume
(d) average propensity to consume
(c) marginal propensity to consume

Question 8.
Which of the following is correctly matched:
(a) J.M. Clark – Ceteris Paribus
(b) J.M. Keynes – Psychological law of consumption
(c) R.F. Khan – Accelerator model
(d) Duesenberry – Laissez-faire
(b) J.M. Keynes – Psychological law of consumption

Question 9.
The basic distinction between M1 and M2 is with regard to…………..
(a) post office deposits
(b) time deposits of banks
(c) saving deposits of banks
(d) currency
(b) time deposits of banks

Question 10.
Match the following and choose the correct answer by using codes given below:

Code:

(a) A-1, B-2, C-3, D-4

Question 11.
(a) Rate at which the Commercial Banks are willing to lend to RBI
(b) Rate at which the RBI is willing to lend to commercial banks
(c) Exchange rate of the foreign bank
(d) Growth rate of the economy
(b) Rate at which the RBI is willing to lend to commercial banks.

Question 12.
Lowering the Bank rate off sets……….. tendencies.
(a) Deflationary
(b) Inflationary
(c) Stagflationary
(d) Hyper inflationary
(a) Deflationary

Question 13.
Which of the following is a modem theory of international trade?
(a) absolute cost
(b) comparative cost
(c) Factor endowment theory
(d) none of these
(c) Factor endowment theory

Question 14.
The headquarters of ASEAN is ……………..
(a) Jaharta
(b) New Delhi
(c) Colombo
(d) Tokyo
(a) Jaharta

Question 15.
Which of the following is correctly matched
(a) Objectives of IMF – To promote textiles
(b) Functions of IMF – Exchange stability
(c) Facilities offered by IMF – Basic Debit Facility
(d) Achievements of IMF – Country discipline and co-operation
(b) Functions of IMF – Exchange stability

Question 16.
………. refers to Government spending incurred by central, state, local government of a country.
(a) Public Finance
(b) Public Expenditure
(c) Public Revenue
(d) Social Welfare
(b) Public Expenditure

Question 17.
Which of the following is the anticipated effect of Global wanning?
(a) Rising sea levels
(b) Changing precipitation
(c) Expansion of deserts
(d) All of the above
(a) Rising sea levels

Question 18.
………… the state is all powerful in preparation and implementation of the plan.
(a) Centralized planning
(b) Planning by direction
(c) Indicative planning
(d) Imperative planning
(d) Imperative planning

Question 19.
State whether the statements are true or false.
(i) Economic development was redefined in terms of reduction of poverty, inequality and unemployment with in the context of a growing economy.
(ii) New welfare oriented approach is “Redistribution with growth”.
(a) Both (i) and (ii) are true
(b) Both (i) and (ii) are false
(c) (i) is true but (ii) is false
(d) (0 is false but (ii) is true
(a) Both (i) and (ii) are true

Question 20.
Assertion (A): Ronald Fisher introduced the concept of Standard Deviation.
Reason (R): Standard Deviation is one of the methods of Absolute measure of dispersion.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
(d) ‘A’ is false but ‘R’ is true

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 x 2 = 14]

Question 21.
Define Mixed Economy (or) Mixedism.
In a mixed economy system both private and public sectors co-exist and work together towards economic development. It is a combination of both capitalism and socialism. It tends to eliminate the evils of both capitalism and socialism.

In these economies, resources are owned by individuals and the government. India, England, France and Brazil are the examples of mixed economy.

Question 22.
Explain briefly NNP at factor cost.
Net National Product refers to the value of the net output of the economy during the year. NNP is obtained by deducting the value of depreciation, or replacement allowance of the capital assets from the GNP. It is expressed as,
NNP = GNP – depreciation allowance.

Question 23.
Write the types of unemployment.
Types of unemployment:

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

Question 24.
Define marginal propensity to consume (MPC).
Marginal Propensity to Consume:
The marginal propensity to consume may be defined as the ratio of the change in the consumption to the change in income. Algebraically it may be expressed as under:
MPC = $$\frac{ΔC}{ΔY}$$
Where, ΔC = Change in Consumption; ΔY = Change in Income
MPC is positive but less than unity, 0 < $$\frac{ΔC}{ΔY}$$ < 1

Question 25.
What is gold standard?
Gold Standard is a system in which the value of the monetary unit or the standard currency is directly linked with gold. The monetary unit is defined in terms of a certain weight of gold. The purchasing power of a unit of money is maintained equal to the value of a fixed weight of gold.

Question 26.
International Trade refers to the trade or exchange of goods and services between two or more countries. In other words, it is a trade among different countries or trade across political boundaries. It is also called as ‘external trade’ or ‘foreign trade’ or ‘inter-regional trade’.

Question 27.
Write the ‘ASEAN’ member of countries.
ASEAN was established on 8 August 1967 in Bangkok by the five original member countries: Indonesia, Malaysia, Philippines, Singapore and Thailand.

Question 28.
What is public revenue?
Public Revenue: Public revenue deals with the methods of raising public revenue such as tax and non-tax, the principles of taxation, rates of taxation, impact, incidence and shifting of taxes and their effects.

Question 29.
Define Global warming.
Global warming is the current increase in temperature of the Earth’s surface (both land and water) as well as its atmosphere. Average temperatures around the world have risen by 0.75°C (1.4°F) over the last 100 years. About two thirds of this increase has occurred since 1975. Carbon dioxide, methane, Chlorofluoro Carbon, nitrous oxides are the green house gases warming the earth’s surface. So it is also called green house effect. The CO2 is the most important of the green house gases contributing to 50% of global warming. Global warming adversely affects agriculture, horticulture and eco system.

Question 30.
Define economic development.
Economic development refers to the problems of underdeveloped countries and economic growth to those of developed countries. Economic development deals with the problems of UDCs. Change is discontinuous and spontaneous.

Economic development is not determined by any single factor. Economic development depends on Economic, Social, Political and Religious factors.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Indicates the Merits of Socialism.

1. Reduction in Inequalities: No one is allowed to own and use private property to exploit others.
2. Rational Allocation of Resources: The central planning authority allocates the resources in a planned manner. Wastages are minimised and investments are made in a pre planned manner.
3. Absence of Class Conflicts: As inequalities are minimum, there is no conflict between rich and poor class. Society functions in a harmonious manner.
4. End of Trade Cycles: Planning authority takes control over production and distribution of goods and services. Therefore, economic fluctuations can be avoided.
5. Promotes Social Welfare: Absence of exploitation, reduction in economic inequalities, avoidance of trade cycles and increase in productive efficiency help to promote social welfare.

Question 32.
Write the statistical problems.
The following are the some of the statistical problems:

1. Accurate and reliable data are not adequate, as farm output in the subsistence sector is not completely
2. informed. In animal husbandry, there are no authentic production data available.
3. Different languages, customs, etc., also create problems in computing estimates.
4. People in India are indifferent to the official inquiries. They are in most cases non-cooperative also.
5. Most of the statistical staff are untrained and inefficient.

Question 33.
What do you mean by propensity to consume?
The consumption function or propensity to consume refers to income consumption relationship. It is a “functional relationship between two aggregates viz., total consumption and gross national income.”
Symbolically, the relationship is represented as C = f (Y)
Where, C = Consumption; Y Income; f = Function

Thus the consumption function indicates a functional relationship between C and Y, where C is the dependent variable and Y is the independent variable, i.e., C is determined by Y. This relationship is based on the ceteris paribus (other things being same) assumption, as only income consumption relationship is considered and all possible influences on consumption are held constant.

Question 34.
Explain Demand-pull and Cost push inflation.
Demand-Pull Vs Cost-Push inflation:
(i) Demand-Pull Inflation: Demand and supply play a crucial role in deciding the inflation levels in the society at all points of time. For instance, if the demand is high for a product and supply is low, the price of the products increases.

(ii) Cost-Push Inflation: When the cost of raw materials and other inputsrises inflation results. Increase in wages paid to labour also leads to inflation.

Question 35.
Give a brief note on NBFI.
Non-Banking Financial Institution (NBFI):

A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that does not have a full banking license or is not supervised by the central bank.

The NBFIs do not carry on pure banking business, but they will carry on other financial transactions. They receive deposits and give loans: They mobilize people’s savings and use the funds to finance expenditure on investment activities. In short, they are institutions which undertake borrowing and lending. They operate in both the money and the capital markets.

NBFIs can be broadly classified into two categories. Viz.., (1) Stock Exchange; and (2) Other Financial institutions. Under the latter category comes Finance Companies, Finance Corporations, ChitFunds, Building Societies, Issue Houses, Investment Trusts and Unit Trusts and Insurance Companies.

Question 36.
What are import quotas?
Import Control: Imports may be controlled by:

1. imposing or enhancing import duties
2. restricting imports through import quotas
3. licensing and even prohibiting altogether the import of certain non-essential items. But this would encourage smuggling.

Question 37.
Mention the objectives of ASEAN.
Objectives of ASEAN:
The ASEAN Declaration states the aims and purposes of the Association as:

1. To accelerate the economic growth, social progress and cultural development in the region;
2. To promote regional peace and stability and adherence to the principles of the United Nations Charter;
3. To promote cooperation among the members of ASEAN through the exchange of knowledge and experience in the field of public sector auditing.
4. To provide a conducive environment and facilities for research, training, and education among the members
5. To serve as a centre of information and as an ASEAN link with other international organizations.

Question 38.
Mention any three methods of redemption of public debt.
Methods of Redemption of Public Debt:
The process of repaying a public debt is called redemption. The Government sells securities to the public and at the time of maturity, the person who holds the security surrenders it to the Government. The following methods are adopted for debt redemption.

(i) Sinking Fund:

1. Under this method, the Government establishes a separate fund known as “Sinking Fund”.
2. The Government credits every year a fixed amount of money to this fund.
3. By the time the debt matures, the fund accumulates enough amount to pay off the principal along with interest.
4. This method was first introduced in England by Walpol.

(ii) Conversion:

1. Conversion of loans is another method of redemption of public debt.
2. It means that an old loan is converted into a new loan.
3. Under this system a high interest public debt is converted into a low interest public debt.
4. Dalton felt that debt conversion actually relaxes the debt burden.

(iii) Budgetary Surplus:

1. When the Government presents surplus budget, it can be utilised for repaying the debt.
2. Surplus occurs when public revenue exceeds the public expenditure.
3. However, this method is rarely possible.

Question 39.
State the meaning of e-waste.

1. Electronic waste which is commonly referred as “e-waste” is the new byproduct of the Info Tech society.
2. It is a physical waste in the form of old discarded, end of life electronics.
3. It includes a broad and growing range of electronic devices from large household appliances such as refrigerators, air conditioners, cellular phones, computers and other electronic goods”.
4. Similarly, e-waste can be defined as the result when consumer, business and household devices are disposed or sent for re-cycling (example, television, computers, audio-equipments, VCR, DVD, telephone, Fax, Xerox machines, wireless devices, video games, other household electronic equipments).

Question 40.
How would you break the vicious circle of poverty?
Breaking the Vicious Circle of Poverty:

1. The vicious circle of poverty is associated with low rate of saving and investment on the supply side.
2. In UDCs the rate of investment and capital formation can be stepped up without reduction in consumption. For this, the marginal rate of savings is to be greater than average rate of savings.
3. To break the vicious circle on the demand side, Nurkse suggested the strategy of balanced growth.
4. If investment is made in several industries simultaneously the workers employed in various industries will become consumers of each other’s products and will create demand for one another.
5. The balanced growth i.e. simultaneous investment in large number of industries creates mutual demand. Thus, through the strategy of balanced growth, vicious circle of poverty operating on the demand side of capital formation can be broken.

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
Explain the Importance of Factor Cost.

[OR]

(b) Critically explain Say’s law of market.
Criticisms of Say’s Law:
The following are the criticisms against Say’s law:

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

Question 42 (a).
What is consumption function?
Meaning of Consumption Function:
The consumption function or propensity to consume refers to income consumption relationship. It is a “functional relationship between two aggregates viz., total consumption and gross national income.”

Symbolically, the relationship is represented as
C = f(Y)
Where,
C = Consumption; Y = Income;/= Function
Thus the consumption function indicates a functional relationship between C and Y, where C is the dependent variable and Y is the independent variable, i.e., C is determined by Y. This relationship is based on the ceteris paribus (other things being same) assumption, as only income consumption relationship is considered and all possible influences on consumption are held constant.

[OR]

(b) Explain the Inflation Effects of production.
Effects on Production: When the inflation is very moderate, it acts as an incentive to traders and producers. This is particularly prior to full employment when resources are not fully utilized. The profit due to rising prices encourages and induces business class to increase their investments in production, leading to generation of employment and income.

1. However, hyper-inflation results in a serious depreciation of the value of money and it discourages savings on the part of the public.
2. When the value of money undergoes considerable depreciation, this may even drain out the foreign capital already invested in the country.
3. With reduced capital accumulation, the investment will suffer a serious set-back which may have an adverse effect on the volume of production in the country. This may discourage entrepreneurs and business men from taking business risk.
4. Inflation also leads to hoarding of essential goods both by the traders as well as the consumers and thus leading to still higher inflation rate.
5. Inflation encourages investment in speculative activities rather than productive purposes.

Question 43 (a).
Describe the functions of Reserve Bank of India.
Functions of Central Bank (Reserve Bank of India):
The Reserve Bank of India (RBI) is India’s central banking institution, which controls the monetary policy of the Indian rupee.
1. Monetary Authority: It controls the supply of money in the economy to stabilize exchange rate, maintain healthy balance of payment, attain financial stability, control inflation, strengthen banking system.

2. The issuer of currency: The objective is to maintain the currency and credit system of the country. It is the sole authority to issue currency. It also takes action to control the circulation of fake currency.

3. The issuer of Banking License: As per Sec 22 of Banking Regulation Act, every bank has to obtain a banking license from RBI to conduct banking business in India.

4. Banker to the Government: It acts as banker both to the central and the state governments. It provides short-term credit. It manages all new issues of government loans, servicing the government debt outstanding and nurturing the market for government securities. It advises the government on banking and financial subjects.

5. Banker’s Bank: RBI is the bank of all banks in India as it provides loan to banks, accept the deposit of banks, and rediscount the bills of banks.

6. Lender of last resort: The banks can borrow from the RBI by keeping eligible securities as collateral at the time of need or crisis, when there is no other source.

7. Act as clearing house: For settlement of banking transactions, RBI manages 14 clearing houses. It facilitates the exchange of instruments and processing of payment instructions.

8. Custodian of foreign exchange reserves: It acts as a custodian of FOREX. It administers and enforces the provision of Foreign Exchange Management Act (FEMA), 1999. RBI buys and sells foreign currency to maintain the exchange rate of Indian rupee v/s foreign currencies.

9. Regulator of Economy: It controls the money supply in the system, monitors different key indicators like GDP, Inflation, etc.

10. Managing Government securities: RBI administers investments in institutions when they invest specified minimum proportions of their total assets/liabilities in government securities.

11. Regulator and Supervisor of Payment and Settlement Systems: The Payment and Settlement Systems Act of 2007 (PSS Act) gives RBI oversight authority for the payment and settlement systems in the country. RBI focuses on the development and functioning of safe, secure and efficient payment and settlement mechanisms.

12. Developmental Role: This role includes the development of the quality banking system in India and ensuring that credit is available to the productive sectors of the economy. It provides a wide range of promotional functions to support national objectives. It also includes establishing institutions designed to build the country’s financial infrastructure. It also helps in expanding access to affordable financial services and promoting financial education and literacy.

13. Publisher of monetary data and other data: RBI maintains and provides all essential banking and other economic data, formulating and critically evaluating the economic policies in India. RBI collects, collates and publishes data regularly.

14. Exchange manager and controller: RBI represents India as a member of the International Monetary Fund [IMF], Most of the commercial banks are authorized dealers of RBI.

15. Banking Ombudsman Scheme: RBI introduced the Banking Ombudsman Scheme in 1995. Under this scheme, the complainants can file their complaints in any form, including online and can also appeal to the Ombudsman against the awards and the other decisions of the Banks.

16. Banking Codes and Standards Board of India: To measure the performance of banks against Codes and standards based on established global practices, the RBI has set up the Banking Codes and Standards Board of India (BCSBI).

[OR]

(b) Explain the State Industrial Development Corporations.
State Industrial Development Corporations (SIDCOs):

1. The Industrial Development Corporations have been set up by the state governments and they are wholly owned by them.
2. These institutions are not merely financing agencies; they are entrusted with the responsibility of accelerating the industrialization of their states.

SIDCO (Small Industrial Development Corporation):

1. SIDCOs provide financial assistance to industrial concerns by way of loans guarantees and underwriting of or direct subscriptions to shares and debentures.
2. In addition to these, they undertake various promotional activities, such as conducting techno-economic surveys, project identification, preparation of feasibility studies and selection and training of entrepreneurs.
3. They also promote joint sector projects in association with private promoter in such type of projects.
4. SIDCOs take 26 percent, private co-promoter takes 25 percent of the equity, and the rest is offered to the investing public.
5. SIDCOs undertake the development of industrial areas by providing all infrastructural facilities and initiation of new growth centers.
6. They also administer various State government incentive schemes.
7. SIDCOs get refinance facilities form IDBI.
8. They also borrow through bonds and accept deposits.

Question 44 (a).
Explain briefly the Comparative Cost Theory.
Ricardo’s Theory of Comparative Cost Advantage:

1. David Ricardo, the British economist in his ‘Principles of Political Economy and Taxation’ published in 1817, formulated a systematic theory called ‘Comparative Cost Theory’.
2. Ricardo demonstrates that the basis of trade is the comparative cost difference. In other words, trade can take place even if the absolute cost difference is absent but there is comparative cost difference.
3. According to Ricardo, a country can gain from trade when it produces at relatively lower costs. Even when a country enjoys absolute advantage in both goods, the country would specialize in the production and export of those goods which are relatively more advantageous.

Assumptions:

1. There are only two nations and two commodities (2×2 model)
2. Labour is the only element of cost of production.
3. All labourers are of equal efficiency.
4. Labour is perfectly mobile within the country but perfectly immobile between countries.
5. Production is subject to the law of constant returns.
6. Foreign trade is free from all barriers.
7. No change in technology.
8. No transport cost.
9. Perfect competition.
10. Full employment.
11. No government intervention.

Illustration:
Ricardo’s theory of comparative cost can be explained with a hypothetical example of production costs of cloth and wheat in America and India.

(Units of labour required to produce one unit)

It is evident from the example that India has an absolute advantage in production of both cloth and wheat.

However, India should concentrate on the production of wheat in which she enjoys a comparative cost advantage. (80/120 < 90/100). For America the comparative cost disadvantage is lesser in cloth production. Hence America will specialize in the production of cloth and export it to India in exchange for wheat. (Any exchange ratio between 0.88 units and 1.2 units of cloth against one unit of wheat represents gain for both the nations). With trade, India can get 1 unit of cloth and 1 unit of wheat by using its 160 labour units. In the absence of trade, for getting this benefit, India will have to use 170 units of labour. America also gains from this trade. With trade, America can get 1 unit of cloth and one unit of wheat by using its 200 units of labour. Otherwise, America will have to use 220 units of labour for getting 1 unit of cloth and 1 unit of wheat.

[OR]

(b) Briefly explain causes for Balance of payments disequillibrium.
Causes for BoP Disequilibrium:
The following are the major causes producing disequilibrium in the balance of payments of a country.
(i) Cyclical Fluctuation:

1. .Cyclical disequilibrium in different countries is caused by their cyclical fluctuations, their phases and magnitude.

(ii) Structural Changes:

1. Structural disequilibrium is caused by the structural changes brought by huge development and investment programmes in the developing economies.
2. Such economies may have high propensity to import for want of capital for rapid industrialization, while export may not be boosted up to that extent.

(iii) Development Expenditure:

1. Development disequilibrium is caused by rapid economic development which results in income and price effects.
2. The less developed countries in the early stage of development are not self sufficient.
3. Income, savings and investment are abysmally low.
4. They depend upon developed countries for import of commodities, capital and technology.
5. Export potential is low and import intensity is high.
6. So the LDCs suffer from adverse BoP.

(iv) Consumerism:

1. Balance of payments position of a country is adversely affected by a huge increase in consumption.
2. This increases the need for imports and decreases the capacity to export.

(v) Demonstration Effect:

1. Deficit in the balance of payments of developing countries is also caused by demonstration effect which influences the people in UDCs to imitate western styled goods.
2. This will raise the propensity to import causing adverse balance of payments.
3. This is good for the developed countries.

(vi) Borrowing:

1. International borrowing and investment may cause a deficit in the balance of payments.
2. When the international borrowing is heavy, a country’s balance of payments will be adverse since it repays loans with interest.
3. Servicing of debt is a huge burden. That is why the IJDCs are forced to borrow more.

(vii) Technological Backwardness:

1. Due to technological backwardness, the people (Indians) are unable to use the energy (Solar) available with them.
2. As a result they import huge petroleum products from foreign countries, increasing the trade deficit.

(viii) Global Politics:

1. The rich countries (e.g. USA) need to sell their weapons to promote their economy and generate employment.
2. Hence, wars between countries (for example Iran and Irag, Pakistan and India) are stimulated In order to win the wars, the poor countries are forced to buy the weapons from weapon – rich countries, using their export earnings and creating trade deficit.
3. Thus UDCs are trapped forever.

Question 45 (a).
Explain the achievements of World Bank.
Achievements of World Bank:
The World Bank is said to be successful in achieving its primary objective of reconstruction and-development of war ravaged nations. It helped greatly in the reconstruction of Europe after the World War II. It has been providing the developed and developing countries the same treatment in the process of growth.

1. It is noted that the Bank’s membership has increased from the initial number of 30 countries to 68 countries in 1960 and to 151 countries in 1988. The IBRD has 189 member countries.
2. The Bank grants medium and long-term loans (i.e., payable over a period of 15-20 years) for reconstruction and development purposes to the member countries. The actual term of a loan depends upon the estimated useful life of the equipment or plant financed.
3. Initially the World Bank’s loans were mainly directed at the European countries for financing their programmes of reconstruction. Later it changed its development loan strategy and lays more emphasis of financing schemes for the poor masses of the developing countries.
4. The World Bank grants loans to member countries only for productive purposes particularly for agriculture, irrigation, power and transport. In other words, the Bank strengthens . infrastructure needed for further development.
5. The International Development Association (IDA), the Soft Loan Window of the Bank provides loans to UDCs at very low rate of interest. However, the economic inequality among the member-countries goes on increasing. Many African countries are yet to improve their economic status.

[OR]

(b) Bring out the merits of indirect taxes over direct taxes.
Merits of Direct Taxes:
(i) Equity:

1. Direct taxes are progressive i.e. rate of tax varies according to tax base.
2. For example, income tax satisfies the canon of equity.

(ii) Certainty:

1. Canon of certainty can be ensured by direct taxes.
2. For example, an income tax payer knows when and at what rate he has to pay income tax.

(iii) Elasticity:

1. Direct taxes also satisfy the canon of elasticity.
2. Income tax is income elastic in nature. As income level increases, the tax revenue to the Government also increases automatically.

(iV) Economy:

1. The cost of collection of direct taxes is relatively low.
2. The tax payers pay the tax directly to the state.

Merits of Indirect Taxes:
(i) Wider Coverage:

1. All the consumers, whether they are rich or poor, have to pay indirect taxes.
2. For this reason, it is said that indirect taxes can cover more people than direct taxes.
3. For example, in India everybody pays indirect tax as against just 2 percent paying income tax.

(ii) Equitable:
The indirect tax satisfies the canon of equity when higher tax is imposed on luxuries used by rich people.

(iii) Economical:

1. Cost of collection is less as producers and retailers collect tax and pay to the Government.
2. The traders act as honorary tax collectors.

(iv) Checks harmful consumption:

1. The Government imposes indirect taxes on those commodities which are harmful to health e.g. tobacco, liquor etc.
2. They are known as sin taxes.

(v) Convenient:

1. Indirect taxes are levied on commodities and services.
2. Whenever consumers make purchase, they pay tax along with the price.
3. They do not feel the pinch of paying tax.

Question 46 (a).
Bring out the merits and demerits of Direct taxes.
Merits of Direct Taxes:
(i) Equity:

1. Direct taxes are progressive i.e. rate of tax varies according to tax base.
2. For example, income tax satisfies the canon of equity.

(ii) Certainty:

1. Canon of certainty can be ensured by direct taxes.
2. For example, an income tax payer knows when and at what rate he has to pay income tax. (Hi) Elasticity:
3. Direct taxes also satisfy the canon of elasticity.
4. Income tax is income elastic in nature.
5. As income level increases, the tax revenue to the Government also increases automatically. (iv) Economy:
6. The cost of collection of direct taxes is relatively low.
7. The tax payers pay the tax directly to the state.

Demerits of Direct Taxes:
(i) Unpopular:

1. Direct taxes are generally unpopular.
2. It is inconvenient and less flexible.

(ii) Productivity affected:

1. According to many economists direct tax may adversely affect productivity.
2. Citizens are not willing to earn more income because in that case they have to pay more taxes.

(iii) Inconvenient:
The tax payers find it inconvenient to maintain accounts, submit returns and pay tax in lump sum.

(iv) Tax Evasion:

1. The burden of direct tax is so heavy that tax-payers always try to evade taxes.
2. This ultimately leads to the generation of black money, which is harmful to the economy.

[OR]

(b) Brief the linkage between economy and environment.

1. Man’s life is interconnected with various other living and non-living things.
2. The life also depends on social, political, ethical, philosophical and other aspects of economic system.
3. In fact, the life of human beings is shaped by his living environment.
4. The relationship between the economy and the environment is generally explained in the form of a “Material Balance Model”.
5. The model considers the total economic process as a physically balanced How between inputs and outputs.
6. Inputs are bestowed with physical property of energy which is received from the environment.
7. The interdependence of economics and environment.

Question 47 (a).
Describe the case for planning.
The economic planning is justified on the following grounds.
(i) To accelerate and strengthen market mechanism: The market mechanism works imperfectly in underdeveloped countries because of the ignorance and unfamiliarity with it. A large part of the economy comprises the non-monetized sector.

(ii) To remove unemployment: Capital being scarce and labour being abundant, the problem of providing gainful employment opportunities to an ever-increasing labour force is a difficult task.

(iii) To achieve balanced development: In the absence of sufficient enterprise and initiative, the planning authority is the only institution for planning the balanced development of the economy.

• Development of Agriculture and Industrial Sectors: The need for developing the agriculture sector along with the industrial sector arises from the fact that agriculture and industry are interdependent.
• Development of Infrastructure: The agriculture and industrial sectors cannot develop in the absence of economic and social overheads. The building of canals, roads, railways, power stations, etc., is indispensable for agricultural and industrial development.
• Development of Money and Capital Markets: The expansion of the domestic and foreign trade requires’ not only the development of agricultural and industrial sectors along with social and economic overheads but also the existence of financial institutions.

(iv) To remove poverty and inequalities: Planning is the only path open to underdeveloped countries, for raising national and per capita income, reducing inequalities and poverty and increasing employment opportunities.

[OR]

(b) Central Statistical Office (CSO)

1. The Central Statistical Office is one of the two wings of the National Statistical Organisation (NSO).
2. It is responsible for co-ordination of statistical activities in the country and for evolving and maintaining statistical standards.
3. Its activities include compilation of National Accounts; conduct of Annual Survey of Industries and Economic Censuses, compilation of Index of Industrial Production as well as Consumer Price Indices.
4. It also deals with various social statistics, training, international cooperation, Industrial Classification, etc.
5. The CSO is headed by a Director- General who is assisted by 5 Additional Director- Generals looking after the National Accounts Division, Social Statistics Division, Economic Statistics Division, Training Division and the Coordination and Publication Division.
6. CSO is located in the Sardar Patel Bhawan, Parliament Street, New Delhi. The Industrial
Statistics Wing of CSO is located in Kolkata.
7. The Computer Centre also under the CSO is located in R K Puram, New Delhi.

## Tamil Nadu 12th Economics Model Question Paper 2 English Medium

Students can Download Tamil Nadu 12th Economics Model Question Paper 2 English Medium Pdf, Tamil Nadu 12th Economics 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 12th Economics Model Question Paper 2 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: 3.00 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions: [20 x 1 = 20]

Question 1.
The country following Capitalism is……….
(a) Russia
(b) America
(c) India
(d) China
(a) Russia

Question 2.
The value of NNP at production point is called……….
(a) NNP at factor cost
(b) NNP at market cost
(c) GNP at factor cost
(d) Per capita income
(a) NNP at factor cost

Question 3.
The basic concept used in Keynes Theory of Employment and Income is……….
(a) Aggregate demand
(b) Aggregate supply
(c) Effective demand
(d) Marginal Propensity Consume
(c) Effective demand

Question 4.
The aggregate effective demand would increase the level of……….
(a) unemployment
(b) employment
(c) cyclical unemployment
(d) open unemployment
(b) employment

Question 5.
The term super multiplier was first used by……….
(a) J.R.Hicks
(b) R.G.D. Allen
(c) Kahn
(d) Keynes
(a) J.R.Hicks

Question 6.
Paper currency system is managed by the………..
(a) Central Monetary authority
(b) State Government
(c) Central Government
(d) Banks
(a) Central Monetary authority

Question 7.
What is the name of inflation without a rise in price level?
(a) Repressed Inflation
(b) Hyper Inflation
(c) Galloping Inflation
(d) Cost-Push Inflation
(a) Repressed Inflation

Question 8.
Moral suasion refers…………
(a) Optimization
(b) Maximization
(c) Persuasion
(d) Minimization
(c) Persuasion

Question 9.
Current account deposits are operated by……….
(a) agriculturists
(c) government servants
(d) labourers

Question 10.
Terms of Trade of a country show………..
(a) Ratio of goods exported and imported
(b) Ratio of import duties
(c) Ratio of prices of exports and imports
(d) Both (a) and (c)
(c) Ratio of prices of exports and imports

Question 11.
Match the following and choose the correct answer by using codes given below:

Codes

(a) A-2, B-1, C-3, D-4

Question 12.
International Development Association is an affiliate of…………
(a) IMF
(b) World Bank
(c) SAARC
(d) ASEAN
(b) World Bank

Question 13.
International Monetary Fund headquarters are present in……….
(a) Geneva
(b) Washington DC
(c) England
(d) China
(b) Washington DC

Question 14.
The difference between total expenditure and total receipts including loans and other liabilities is called……….
(a) Fiscal deficit
(b) Budget deficit
(c) Primary deficit
(d) Revenue deficit
(a) Fiscal deficit

Question 15.
Adam Smith classified public expenditure on the basis of Production Functions, Commercial Functions and……….. Functions.
(a)’ Defence
(b) Growth
(c) Development
(d) Government
(c) Development

Question 16.
Match the following and choose the correct answer by using codes given below:

Code:

(d) A-4, B-1, C-2, D-3

Question 17.
The process of nutrient enrichment is termed as
(a) Eutrophication
(b) Limiting nutrients
(c) Enrichment
(d) Schistosomiasis
(b) Limiting nutrients

Question 18.
Types of Noise pollution. (Pick the odd one out.)
(a) Atmospheric noise pollution
(b) Industrial noise pollution
(d) Acid rain pollution
(d) Acid rain pollution

Question 19.
A process by which we estimate the value of dependent variable on the basis of one or more independent variables is called………….
(a) Correlation
(b) Regression
(c) Residual
(d) Slope
(b) Regression

Question 20.
CSO Director Generals are (Pick the odd one out.)
(b) Sample Statistics Division [SSD]
(c) Economic Statistics Division [ES]
(d) Co-ordination and Publication Division [CPD]
(b) Sample Statistics Division [SSD]

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 x 2 = 14]

Question 21.
Define Mixed Economy (or) Mixedism.
In a mixed economy system both private and public sectors co-exist and work together towards economic development. It is a combination of both capitalism and socialism. It tends to eliminate the evils of both capitalism and socialism. In these economies, resources are owned by individuals and the government. India, England, France and Brazil are the examples of mixed economy.

Question 22.
Write the Factor Incomes group.
Factor incomes are grouped under labour income, capital income and mixed income.

1. Labour income – Wages and salaries, fringe benefits, employer’s contribution to social security.
2. Capital income – Profit, interest, dividend and royalty
3. Mixed income – Farming, sole proprietorship and other professions.

Question 23.
Give reasons for labour retrenchment at present situation.

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

Question 24.
Write two approaches of the equilibrium level of Income in Keynesian theory?
There are two approaches to determination of the equilibrium level of income in Keynesian theory. These are:

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

Question 25.
Define average propensity to consume (APC).
Average Propensity to Consume:
The average propensity to consume is the ratio of consumption expenditure to any particular level of income.” Algebraically it may be expressed as under:
APC = $$\frac{C}{Y}$$
Where, C = Consumption; Y = Income

Question 26.
Define inflation.

1. Inflation is a consistent and appreciable rise in the general price level.
2. In other words, inflation is the rate at which the general level of prices for goods and services is rising and consequently the purchasing power of currency is falling.
3. “Too much of Money chasing too few goods” – Coulbourn
4. “A state of abnormal increase in the quantity of purchasing power” – Gregorye

Question 27.
Write the meaning of Open market operations.

1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market.
2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.
3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

Question 28.
What do you mean by public debt?
The state has to supplement the traditional revenue sources with borrowing from individuals, and institutions within and outside the country. The amount of borrowing is huge in the under developed countries to finance development activities. The debt burden is a big problem and most of the countries are in debt trap.

Question 29.
What do you mean by ecosystem?
An ecosystem includes all living things (plants, animals and organisms) in a given area, interacting with each other, and also with their non-living environments (weather, earth, sun, soil, climate, atmosphere). Ecosystems are the foundations of the Biosphere and they determine the health of the entire earth system.

Question 30.
What are the social indicators of economic development?
Social Indicators:
Social indicators are normally referred to as basic and collective needs of the people. The direct provision of basic needs such as health, education, food, water, sanitation and housing facilities check social backwardness.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Outline the major merits of capitalism.
Merits of Capitalism

1. Automatic Working: Without any government intervention, the economy works automatically.
2. Efficient Use of Resources: All resources are put into optimum use.
3. Incentives for Hard work: Hard work is encouraged and entrepreneurs get more profit for more efficiency.
4. Economic Progress: Production and productivity levels are very high in capitalistic economies.
5. Consumers Sovereignty: All production activities are aimed at satisfying the consumers.
6. Higher Rates of Capital Formation: Increase in saving and investment leads to higher rates of capital formation.
7. Development of New Technology: As profit is aimed at, producers invest on new technology and produce quality goods.

Question 32.
Write briefly about national income and welfare.
National Income is considered as an indicator of the economic wellbeing of a country.
The per capita income as an index of economic welfare suffers from limitations which are stated below:

1. The economic welfare depends upon the composition of goods and services provided. The greater the proportion of capital goods over consumer goods, the improvement in economic welfare will be lesser.
2. Higher GDP with greater environmental hazards such as air, water and soil pollution will be little economic welfare.
3. The production of war goods will show the increase in national output but not welfare.
4. An increase in per capita income may be due to employment of women and children or forcing workers to work for long hours. But it will not promote economic welfare.

Question 33.
Give short note on Expenditure method.
List out the assumptions of Say’s law.
The Say’s Law of market is based on the following assumptions:

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

Question 34.
Explain any three subjective and objective factors influencing the consumption function.
Subjective Factors:

1. The motive of precaution: To build up a reserve against unforeseen contingencies. e.g. Accidents, sickness.
2. The motive of foresight: The desire to provide for anticipated future needs. e.g. Old age.
3. The motive of calculation: The desire to enjoy interest and appreciation.

Objective Factors:

1. Income Distribution: If there is large disparity between rich and poor, the consumption is low because the rich people have low propensity to consume and high propensity to save.
2. Price level: Price level plays an important role in determining the consumption function. When the price falls, real income goes up; people will consume more and propensity to save of the society increases.
3. Wage level: Wage level plays an important role in determining the consumption function and there is positive relationship between wage and consumption. Consumption expenditure increases with the rise in wages. Similar is the effect with regard to windfall gains.

Question 35.
Explain the Evolution Of money.

1. The introduction of money as a medium of exchange was one of the greatest inventions of mankind.
2. Before money was invented, exchange took place by Barter, that is, commodities and services were directly exchanged for other commodities and services.
3. Under the barter system, buyers and sellers of commodities had to face a number of difficulties.
4. Surplus goods were exchanged for money which in turn was exchanged for other needed goods.
5. Goods like furs, skins, salt, rice, wheat, utensils, weapons, etc. were commonly used as money.
6. Such exchange of goods for goods was known as “Barter Exchange” or “Barter System”.

Question 36.
What is E-Banking?
Online banking, also known as internet banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website.

The online banking system typically connects to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

Question 37.
Explain the objectives of WTO.

1. To ensure reduction of tariff and other barriers.
2. To eliminate discrimination in trade.
3. To facilitate higher standard of living.
4. To facilitate optimal use of world’s resources.
5. To enable the LDCs to secure fair share in the growth of international trade.
6. To ensure linkages between trade policies, environmental policies and sustainable development.

Question 38.
What are the functions of finance commission of India.

1. The distribution between the Union and the States of the net proceeds of taxes, which may be divided between them and the allocation among the states of the respective shares of such proceeds;
2. To determine the quantum of grantsin- aid to be given by the Centre to states [Article 275 (1)] and to volve the principles governing the eligibility of the state for such grant-in-aid;
3. Any other matter referred to the Commission by the President of India in the interest of sound finance. Several issues like debt relief, financing of calamity relief of states, additional excise duties, etc. have been referred to the Commission invoking this clause.

Question 39.
Explain the limitations of statistics.
1. Statistics is not suitable to the study of qualitative phenomenon: Since statistics is basically a science and deals with a set of numerical data. It is applicable to the study of quantitative measurements. As a matter of fact, qualitative aspects like empowerment, leadership, honesty, poverty, intelligence etc., cannot be expressed numerically and statistical analysis cannot be directly applied on these qualitative phenomena.

2. Statistical laws are not exact: It is well known that mathematical and physical sciences are exact. But statistical laws are not exact and statistical laws are only approximations. Statistical conclusions are not universally true. They are true only on an average.

3. Statistics table may be misused: Statistics must be used only by experts; otherwise, statistical methods are the most dangerous tools on the hands of the inexpert. The use of statistical tools by the inexperienced and untrained persons might lead to wrong conclusions.

4. Statistics is only one of the methods of studying a problem: Statistical method does not provide complete solution of the problems because problems are to be studied taking the background of the countries culture, philosophy, religion etc., into consideration. Thus the statistical study should be supplemented by other evidences.

Question 40.
Briefly explain the kinds of measures of dispersion.
There are two kinds of measures of dispersion, namely

1. Absolute measure of dispersion
2. Relative measure of dispersion

1. Absolute measure of dispersion indicates the amount of variation in a set of values in terms of units of observations.

2. Relative measures of dispersion are free from the units of measurements of the observations. They are pure numbers. They are used to compare the variation in two or more sets, which are having different units of measurements of observations.

3. Standard Deviation is one of the methods of Absolute measure of dispersion. Karl Pearson introduced the concept of standard deviation in 1893. Standard deviation is also called Root- Mean Square Deviation. The reason is that it is the square-root of the mean of the squared deviation from the arithmetic mean. It provides accurate result. Square of standard deviation is called Variance.

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
What is Market price and Equations?

[OR]

(b) Narrate the equilibrium between ADF and ASF with diagram.

• Under the Keynes theory of employment, a simple two sector economy consisting of the household sector and the business sector is taken to understand the equilibrium between ADF and ASF.
• All the decisions concerning consumption expenditure are taken by the individual households, while the business firms take decisions concerning investment.
• It is also assumed that consumption function is linear and planned investment is autonomous.
• There are two approaches to y determination of the equilibrium level of income in Keynesian theory. These are :1. Aggregate demand – Aggregate supply approach, 2. Saving – Investment approach
• In this chapter, out of these two, aggregate Tg demand and aggregate supply approach is alone explained to understand the determination of equilibrium level of income and employment.
• The concept of effective demand is more Q clearly shown in the figure.
• In the figure, the aggregate demand and aggregate supply reach equilibrium at point E. The employment level is N<sub>0</sub> at that point.
• At ON<sub>1</sub> employment, the aggregate supply is N<sub>1</sub> R<sub>1</sub>. But they are able to produce M<sub>1</sub> N<sub>1</sub>. The expected level of profit is M<sub>1</sub>R<sub>1</sub>.
• To attain this level of profit, entrepreneurs will employ more labourers.
• The tendency to employ more labour will stop once they reach point E.
• At all levels of employment beyond, ON<sub>0</sub>, the aggregate demand curve is below the aggregate supply curve indicating loss to the producers.
• Hence they will never employ more than ON<sub>0</sub> labour.
• Thus effective demand concept becomes a crucial point in determining the equilibrium level of output in the capitalist economy or a free market economy in the Keynesian system.
• It is important to note that the equilibrium level of employment need not be the full employment level (N<sub>1</sub>) from the Figure, it is understood that the difference between N<sub>0</sub> – N<sub>1</sub> is the level of unemployment.
• Thus the concept of effective demand becomes significant in explaining the under employment equilibrium.

Question 42 (a).
Explain Keynes psychological law of consumption function with diagram.
The three propositions of the law

Proposition (1):
Income increases by Rs 60 crores and the increase in consumption is by Rs 50 crores.
Proposition (2):
The increased income of Rs 60 crores in each case is divided in some proportion between consumption and saving respectively, (i.e., Rs 50 crores and Rs 10 crores).
Proposition (3):
As income increases consumption as well as saving increase. Neither consumption nor saving has fallen.

Diagrammatically, the three propositions are explained in figure. Here, income is measured horizontally and consumption and saving are measured on the vertical axis. C is the consumption function curve and 45° line represents income consumption equality.

Proposition (1):
When income increases from 120 to 180 consumption also increases from 120 to 170 but the increase in consumption is less than the increase in income, 10 is saved.

Proposition (2):
When income increases to 180 and 240, it is divided in some proportion between consumption by 170 and 220 and saving by 10 and 20 respectively.

Proposition (3):
Increases in income to 180 and 240 lead to increased consumption 170 and 220 and increased saving 20 and 10 than before. It is clear from the widening area below the C curve and the saving gap between 45° line and C curve.

[OR]

(b) Explain the functions of money.

1. Primary Functions:
(i) Money as a medium of exchange: This is considered as the basic function of money. Money has the quality of general acceptability, and all exchanges take place in terms of money.

(ii) Money as a measure of value: The second important function of money is that it measures the value of goods and services. In other words, the prices of all goods and services are expressed in terms of money. Money is thus looked upon as a collective measure of value.

2. Secondary Functions:
(i) Money as a Store of value: Savings done in terms of commodities were not permanent. But, with the invention of money, this difficulty has now disappeared and savings are now done in terms of money. Money also serves as an excellent store of wealth, as it can be easily converted into other marketable assets, such as, land, machinery, plant etc.

(ii) Money as a Standard of Deferred Payments: Borrowing and lending were difficult problems under the barter system. In the absence of money, the borrowed amount could be returned only in terms of goods and services. But the modem money-economy has greatly facilitated the borrowing and lending processes.

(iii) Money as a Means of Transferring Purchasing Power: The field of exchange also went on extending with growing economic development. The exchange of goods is now extended to distant lands.

3. Contingent Functions:
(i) Basis of the Credit System: Money is the basis of the Credit System. Business transactions are either in cash or on credit.

(ii) Money facilitates distribution of National Income: The task of distribution of national income was exceedingly complex under the barter system.

(iii) Money helps to Equalize Marginal Utilities and Marginal Productivities: Consumer can obtain maximum utility only if he incurs expenditure on various commodities in such a manner as to equalize marginal utilities accruing from them. Now in equalizing these marginal utilities, money plays an important role, because the prices of all commodities are expressed in money.

(iv) Money Increases Productivity of Capital: Money is the most liquid form of capital. In other words, capital in the form of money can be put to any use.

4. Other Functions:
(i) Money helps to maintain Repayment Capacity: Money possesses the quality of general acceptability. To maintain its repayment capacity, every firm has to keep assets in the form of liquid cash. The firm ensures its repayment capacity with money.

(ii) Money represents Generalized Purchasing Power: Purchasing power kept in terms of money can be put to any use. It is not necessary that money should be used only for the purpose for which it has been served.
(iii) Money gives liquidity to Capital: Money is the most liquid form of capital. It can be put to any use.

Question 43 (a).
Elucidate the functions of Commercial Banks.
The functions of commercial banks are broadly classified into primary functions and secondary functions.

Functions of Commercial Banks
I. Primary Functions:
1. Accepting Deposits: It implies that commercial banks are mainly dependent on public deposits.
There are two types of deposits
(i) Demand Deposits: It refers to deposits that can be withdrawn by individuals without any prior notice to the bank. In other words, the owners of these deposits are allowed to withdraw money anytime by writing a withdrawal slip or a cheque at the bank counter or from ATM centres using debit card.

(ii) Time Deposits: It refers to deposits that are made for certain committed period of time. Banks pay higher interest on time deposits. These deposits can be withdrawn only after a specific time period by providing a written notice to the bank.

2. Advancing Loans: It refers to granting loans to individuals and businesses. Commercial banks grant loans in the form of overdraft, cash credit, and discounting bills of exchange.

II. Secondary Functions:
The secondary functions can be classified under three heads, namely, agency functions, general utility functions, and other functions.
1. Agency Functions: It implies that commercial banks act as agents of customers by performing various functions.

• Collecting Cheques: Banks collect cheques and bills of exchange on the behalf of
their customers through clearing house facilities provided by the central bank.
• Collecting Income: Commercial banks collect dividends, pension, salaries, rents, and interests on investments on behalf of their customers. A credit voucher is sent to customers for information when any income is collected by the bank.
• Paying Expenses: Commercial banks make the payments of various obligations of customers, such as telephone bills, insurance premium, school fees, and rents.

2. General Utility Functions: It implies that commercial banks provide some utility services to customers by performing various functions.

• Providing Locker Facilities: Commercial banks provide locker facilities to its customers for safe custody of jewellery, shares, debentures, and other valuable items. This minimizes the risk of loss due to theft at homes. Banks are not responsible for the items in the lockers.
• Issuing Traveler’s Cheques: Banks issue traveler’s cheques to individuals for traveling outside the country. Traveler’s cheques are the safe and easy way to protect money while traveling.
• Dealing in Foreign Exchange: Commercial banks help in providing foreign exchange to businessmen dealing in exports and imports. However, commercial banks need to – take the permission of the Central Bank for dealing in foreign exchange.

3. Transferring Funds: It refers to transferring of funds from one bank to another. Funds are transferred by means of draft, telephonic transfer, and electronic transfer.

4. Letter of Credit: Commercial banks issue letters of credit to their customers to certify their creditworthiness.

• Underwriting Securities: Commercial banks also undertake the task of underwriting securities. As public has full faith in the credit worthiness of banks, public do not hesitate in buying the securities underwritten by banks.
• Electronic Banking: It includes services, such as debit cards, credit cards, and Internet banking.

III. Other Functions:

1. Money Supply: It refers to one of the important functions of commercial banks that help in increasing money supply.
2. Credit Creation: Credit Creation means the multiplication of loans and advances. Commercial banks receive deposits from the public and use these deposits to give loans:

[OR]

(b) Describe the Merger of Banks.
Merger of Banks:

1. Union Cabinet decided to merge all the remaining five associate banks of State Bank Group with State Bank of India in 2017.
2. After the Parliament passed the merger Bill, the subsidiary banks have ceased to exist.
3. Five associates and the Bharatiya Mahila Bank have become the part of State Bank of India (SBI) beginning April 1, 2017.
4. This has placed State Bank of India among the top 50 banks in the world.
5. The five associate banks that were merged are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT).
6. The other two Associate Banks namely State Bank of Indore and State Bank of Saurashtra had already been merged with State Bank of India.
7. After the merger, the total customer base of SBI increased to 37 crore with a branch network of around 24,000 and around 60,000 ATMs across the country.

Question 44 (a).
Explain the Adam Smith’s Theory of Absolute Cost Advantage Theory and Assumptions with diagram.
Adam Smith argued that all nations can be benefitted when there is free trade and specialisation in terms of their absolute cost advantage.

The Theory:

Trade between two countries would be mutually beneficial when one country produces a commodity at an absolute cost advantage over the other country which in turn produces another commodity at an absolute cost advantage over the first country.

Assumptions:

1. There are two countries and two commodities (2×2 model).
2. Labour is the only factor of production.
3. Labour units are homogeneous.
4. The cost or price of a commodity is measured by the amount of labour required to produce it.
5. There is no transport cost.

Illustration:
Absolute cost advantage theory can be illustrated with the help of the following example.

1. From the illustration, it is clear that India has an absolute advantage in the production of wheat over China and China has an absolute advantage in the production of cloth over India.
2. Therefore, India should specialize in the production of wheat and import cloth from China.
3. China should specialize in the production of cloth and import wheat from India.
4. This kind of trade would be mutually beneficial to both India and China.

[OR]

(b) Bring out the functions of World Bank.
Functions of IBRD (or) World Bank:
The World Bank performs the major role of providing loans for development works to member countries, especially to underdeveloped countries. The World Bank provides long¬term loans for various development projects. Article 1 of the Agreement states the functions performed by the world bank as follows.
(i) Investment for productive purposes: The World Bank performs the function of assisting in the reconstruction and development of territories of member nations through facility of investment for productive purposes. It also encourages the development of productive facilities and resources in less developed countries.

(ii) Balanced growth of international trade: Promoting the long range balanced growth of trade at international level and the maintaining equilibrium in BOPs of member nations by encouraging international investment.

(iii) Provision of loans and guarantees: Arranging the loans or providing guarantees on loans by various other channels so as to execute important projects.

(iv) Promotion of foreign private investment: The promotion of private foreign investment by means of guarantees on loans and other investment made by private investors. The Bank supplements private investment by providing finance for productive purpose out of its own resources or from borrowed funds.

(v) Technical services: The World Bank facilitates different kinds of technical services to the member countries through Staff College and experts.

Question 45 (a).
Explain the scope of public finance.
Scope of Public Finance:
The subject ‘Public Finance’ includes five major sub-divisions, viz., Public Revenue, Public Expenditure, Public Debt, Financial Administration and Fiscal Policy.

(i) Public Revenue:
Public revenue deals with the methods of raising public revenue such as tax and non-tax, the principles of taxation, rates of taxation, impact, incidence and shifting of taxes and their effects.

(ii) Public Expenditure:
This part studies the fundamental principles that govern the Government expenditure, effects of public expenditure and control of public expenditure.

(iii) Public Debt:

1. Public debt deals with the methods of raising loans from internal and external sources.
2. The burden, effects and redemption of public debt fall under this head.

1. This part deals with the study of the different aspects of public budget.
2. The budget is the Annual master financial plan of the Government.
3. The various objectives and steps in preparing a public budget, passing or sanctioning, allocation evaluation and auditing fall within financial administration.

(v) Fiscal Policy:
Taxes, subsidies, public debt and public expenditure are the instruments of fiscal policy.

[OR]

(b) Briefly explain causes for the increase in public debt.
Causes for the Increase in Public debt:
The causes for enormous growth of public debt may be studied under the following sub-headings:
1. War and Preparation of war
Waging war has become one of the important causes for incurring debts by the governments. In modem times, the preparation for war and nuclear defence programmes take away the major share of the government’s revenue and so it incurs debt.

2. Social obligations
Modem states are considered to be ‘Welfare States and they have to undertake many social obligations like public health, sanitation, education,insurance, transport and communications, etc., besides providing the minimum necessaries of life to the citizens of the country. To finance these, the State has to incur a heavy public debt.

3. Economic Development and Deficit
The government has to undertake many projects for economic development of the country. Construction of railways, power projects, irrigation projects, heavy industries, etc., could be thought of only by means of mobilising resources in the form of public debt. Due to heavy public expenditure, the governments always face deficit budget. Such deficits have to be financed only through borrowings.

4. Employment
Most of the governments of modem days face the problem of unemployment and it has become the duty to solve this by making huge public expenditure. To solve the unemployment problem, and to fight recession, the government has to make huge expenditures. For this the States have to resort to public debt.

5. Controlling inflation
The Government can withdraw excess money from circulation, by raising public debt and thus prevent prices from rising.

6. Fighting depression
During the depression phase, private investment is lacking. The Government applies compensatory public spending by borrowing from internal and external sources.

Question 46 (a).
What is land pollution? Mention the causes of land pollution.
The land pollution is defined as, “the degradation of land because of the disposal of waste on the land”. Any substance (solid, liquid or gaseous) that is discharged, emitted or deposited in the environment in such a way that it alters the environment causes land pollution.
Causes of Land Pollution:
(i) Deforestation and soil erosion:

1. Deforestation carried out to create dry lands is one of the major concerns.
2. Land that is once converted into a dry or barren land, can never be made fertile again, whatever the magnitude of measures to convert it.

(ii) Agricultural activities:

1. With growing human and pet animal population, demand for food has increased considerably.
2. Farmers often use highly toxic fertilizers and pesticides to get rid off insects, fungi and bacteria from their crops.
3. However the overuse of these chemicals, results in contamination and poisoning of land.

(iii) Mining activities:
During extraction and mining activities, several land spaces are created beneath the surface.

(iv) Landfills:

1. Each household produces tones of garbage each year due to changing economic lifestyle of the people.
2. Garbage like plastic, paper, cloth, wood and hospital waste get accumulated.
3. Items that cannot be recycled become a part of the landfills that cause land pollution.

(v) Industrialization:

1. Due to increasing consumerism more industries were developed which led to deforestation.
2. Research and development paved the way for modem fertilizers and chemicals that were highly toxic and led to soil contamination.

(vi) Construction activities:

1. Due to urbanization, large amount of construction activities are taking place.
2. This has resulted in large waste articles like wood, metal, bricks, plastic.
3. These are dumped at the outskirts of urban areas that lead to land pollution.

(vii) Nuclear waste:

1. The leftover radioactive materials, harmful and toxic chemicals affect human health.
2. They are dumped beneath the earth to avoid any casualty.

[OR]

(b) What are the effects of Land pollution?
Effects of Land Pollution:
(i) Soil pollution:

1. Soil pollution is another form of land pollution, where the upper layer of the soil is damaged.
2. This is caused by the ovemse of chemical fertilizers, and pesticides.
3. This leads to loss of fertile land.
4. Pesticides kill not only pests and also human beings.

(ii) Health Impact:

1. The land when contaminated with toxic chemicals and pesticides lead to problem of skin cancer and human respiratory system.
2. The toxic chemicals can reach our body through foods and vegetables.

(iii) Cause for Air pollution:

1. Landfills and waste dumping lead to air pollution.
2. The abnormal toxic substances spread in the atmosphere cause transmit respiratory diseases among the masses.

(iv) Effect on wildlife:

1. The animal kingdom has suffered mostly in the past decades.
2. They face a serious threat with regards to loss of habitat and natural environment.
3. The constant human activity on land is leaving it polluted, forcing these species to move farther away.
4. Sometimes several species are pushed to the verge of extinction or disappear due to no conducive environment.

Question 47 (a).
Trace the evolution of economic planning in India.
The evolution of planning in India is stated below:

(i) Sir M. Vishveshwarya (1934): a prominent engineer and politician made his first attempt in laying foundation for economic planning in India in 1934 through his book, “Planned Economy of India”. It was a 10 year plan.

(ii) Jawaharlai Nehru (1938): set-up “National Planning Commission” by a committee but due to the changes in the political era and second World War, it did not materialize.

(iii) Bombay Plan (1940): The 8 leading industrialists of Bombay presented “Bombay Plan”. It was a 15 Year Investment Plan.

(iv) S.N Agarwal (1944): gave the “Gandhian Plan” focusing on the agricultural and rural economy.

(v) M.N. Roy (1945): drafted ‘People’s Plan”. It was aiming at mechanization of agricultural production and distribution by the state only.

(vi) J.P. Narayan (1950): advocated, “Sarvodaya Plan” which was inspired by Gandhian Plan and with the idea of Vinoba Bhave. It gave importance not only for agriculture, but encouraged small and cottage industries in the plan.

[OR]

(b) Find the Standard Deviation of the following data:
14, 22, 9, 15, 20, 17, 12, 11

## Tamil Nadu 12th Economics Model Question Paper 1 English Medium

Students can Download Tamil Nadu 12th Economics Model Question Paper 1 English Medium Pdf, Tamil Nadu 12th Economics 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 12th Economics Model Question Paper 1 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: 3.00 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions: [20 × 1 = 20]

Question 1.
Indicate the contribution of J M Keynes to economics……..
(a) Wealth of Nations
(b) General Theory
(c) Capital
(d) Public Finance
(b) General Theory

Question 2.
Per capita income is obtained by dividing the National income by………..
(a) Production
(b) Population of a country
(c) Expenditure
(d) GNP
(b) Population of a country

Question 3.
Assertion (A): The Expenditure method is called outlay method.
Reason (R): This method is used only private sector.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is true but ‘R’ is false
(c) ‘A’ is true but ‘R’ is false

Question 4.
The component of aggregate demand is………..
(a) Personal demand
(b) Government expenditure
(c) Only export
(d) Only import
(b) Government expenditure

Question 5.
If the Keynesian consumption function is C= 10 + 0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption?
(a) Rs 0.8
(b) Rs 800
(c) Rs 810
(d) Rs 0.81
(c) Rs 810

Question 6.
Which of the following is correctly matched:
(a) J.M. Clark – Ceteris Paribus
(b) J.M. Keynes – Psychological law of consumption
(c) R.F. Khan – Accelerator model
(d) Duesenberry – Laissez-faire
(b) J.M. Keynes – Psychological law of consumption

Question 7.
………. inflation is in no way dangerous to the economy.
(a) Walking
(b) Running
(c) Creeping
(d) Galloping
(a) Walking

Question 8.
Match the following and choose the correct answer by using codes given below:

Codes

(a) A-3, B-4, C-1, D-2

Question 9.
Expansions of ATM.
(a) Automated Teller Machine
(c) Automatic Teller mechanism
(d) Any Time Money
(a) Automated Teller Machine

Question 10.
Commercial Banks create credit in favour of the……..
(a) consumers
(c) customers
(d) agriculturists
(c) customers

Question 11.
Net export equals ………
(a) Export x Import
(b) Export + Import
(c) Export – Import
(d) Exports of services only
(c) Export – Import

Question 12.
Assertion (A): Price of a commodity is measured by the amount of labour required to produce it.
Reason (R): Trade is one of the Demerit.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
(c) ‘A’ is true but ‘R’ is false

Question 13.
Which of the following is not the member of SAARC?
(a) Pakistan
(b) Sri Lanka
(c) Bhutan
(d) China
(d) China

Question 14.
IBRD otherwise called the………..
(a) IMF
(b) SDR
(c) SAF
(d) World Bank
(d) World Bank

Question 15.
Finance Commission determines …………
(a) The finances of Government of India
(b) The resources transfer to the states
(c) The resources transfer to the various departments
(d) None of the above
(b) The resources transfer to the states

Question 16.
Match the following and choose the correct answer by using codes given below:

codes

A-2, B-4. C-1, D-3

Question 17.
………. is the current increase in temperature of the Earth’s surface as well as its atmosphere.
(a) Globe warming
(b) Global warming
(c) Globe spoiled
(d) Temperature warming
(b) Global warming

Question 18.
The supply side vicious circle of poverty suggests that poor nations remain poor because
(a) Saving remains low
(b) Investment remains low
(c) There is a lack of effective government
(d) a and b above
(d) a and b above

Question 19.
……….planning pertains to the allocation of resources in terms of men, materials and machinery.
(a) Financial
(b) Physical
(c) Functional
(d) Structural
(b) Physical

Question 20.
The word ‘statistics’ is used as……….
(a) Singular
(b) Plural
(c) Singular and Plural
(d) None of above
(c) Singular and Plural

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 x 2 = 14]

Question 21.
What do you mean by Capitalism?
Capitalism, is total freedom and private ownership of means of production. Capitalistic economy is also termed as a free economy (Laissez faire, in Latin) or market economy where the role of the government is minimum and market determines the economic activities.

Question 22.
Write the formula for calculating GNP.
GNP at market prices means the gross value of final goods and services produced annually in a country plus net factor income from abroad
(C + I + G + (X – M) + (R – P)

Question 23.
Write the headlines of difficulties in Measuring National Income.
Difficulties in Measuring National Income:

1. Transfer payments
2. Difficulties in assessing depreciation allowance
3. Unpaid services
4. Income from illegal activities
5. Production for self-consumption and changing price
6. Capital Gains
7. Statistical problems.

Question 24.
What is effective demand?
The starting point of Keynes theory of employment and income is the principle of effective demand.  Effective demand denotes money actually spent by the people on products of industry. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit. Therefore effective demand equals national income.

Question 25.
Define “Unemployment”.
Unemployment: When there are people, who are willing to work and able to work but cannot find suitable jobs.

Question 26.
Define average propensity to save (APS).
Average Propensity to Save (APS):
The average propensity to save is the ratio of saving to income. APS is the quotient obtained by dividing the total saving by the total income. In other words, it is the ratio of total savings to total income. It can be expressed algebraically in the form of equation as under
APS = $$\frac{S}{Y}$$
Where, S = Saving; Y = Income

Question 27.
Define “Ceteris paribus”.
Ceteris paribus (constant extraneous variables): The other variables such as income distribution, tastes, habits, social customs, price movements, population growth, etc. do not change and consumption depends on income alone.

Question 28.
State briefly the functions of SAARC.
Functions of SAARC:
The main functions of SAARC are as follows.

1. Maintenance of the co operation in the region
2. Prevention of common problems associated with the member nations.
3. Ensuring strong relationship among the member nations.
4. Removal of the poverty through various packages of programmes.
5. Prevention of terrorism in the region.

Question 29.
What are the components of GST?
Components of GST:
The component of GST are of 3 types. They are: CGST, SGST & IGST.

1. CGST: Collected by the Central Government on an intra-state sale (e.g. Within state/ union territory)
2. SGST: Collected by the State Government on an intra-state sale (e.g. Within state/ union territory)
3. IGST: Collected by the Central Government for inter-state sale (e.g. Maharashtra to Tamil Nadu)

Question 30.
What are environmental goods? Give examples.
Environmental goods are typically non-market goods, including clear air, clean water, landscape, green transport infrastructure (footpaths, cycle ways, greenways, etc.), public parks, urban parks, rivers, mountains, forests, and beaches.

Concerns with environmental goods focus on the effects that the exploitation of ecological systems have on the economy, the well-being of humans and other species, and on the environment.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Describe the socialistic econonomy.
Socialistic Economy (Socialism):

1. The Father of Socialism is Karl Marx. Socialism refers to a system of total planning, public ownership and state control on economic activities.
2. Socialism is defined as a way of organizing a society in which major industries are owned and controlled by the government.
3. A Socialistic economy is also known as ‘Planned Economy’ or ‘Command Economy’.
4. In a socialistic economy, all the resources are owned and operated by the government.
5. Public welfare is the main motive behind all economic activities. It aims at equality in the distribution of income and wealth and equal opportunity for all.
6. Russia, China, Vietnam, Poland and Cuba are the examples of socialist economies. But, now there are no absolutely socialist economies.

Question 32.
Discuss the limitations of Macro Economics.
Macro economics suffers from certain limitations. They are:

1. There is a danger of excessive generalisation of the economy as a whole.
2. It assumes homogeneity among the individual units.
3. There is a fallacy of composition. What is good of an individual need not be good for nation and vice versa. And, what is good for a country is not good for another country and at another time.
4. Many non-economic factors determine economic activities; but they do not find place in the usual macroeconomic books.

Question 33.
Give short note on Expenditure method.
The Expenditure Method (Outlay method):

1. The total expenditure incurred by the society in a particular year is added together.
2. To calculate the expenditure of a society, it includes personal consumption expenditure, net domestic investment, government expenditure on consumption as well as capital goods and net exports.

Question 34.
Describe the types of unemployment.
The following are the types of unemployment.
Types of unemployment:

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

1. Cyclical Unemployment:

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

2. Seasonal Unemployment:

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

3. Frictional Unemployment (Temporary Unemployment):

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

4. Educated Unemployment:

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

5. Technical Unemployment:

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

6. Structural Unemployment:

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

7. Disguised Unemployment:

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

Question 35.
Differentiate autonomous and induced investment.

 Sl.No Autonomous Investment Induced Investment 1 Independent Planned 2 Income inelastic Income elastic 3 Welfare motive Profit Motive

Question 36.
What is money supply?

1. Money supply means the total amount of money in an economy.
2. It refers to the amount of money which is in circulation in an economy at any given time.
3. Money supply plays a crucial role in the determination of price level and interest rates.
4. Money supply viewed at a given point of time is a stock and over a period of time it is a flow.

Question 37.
Distinguish between money market and capital market.

 S.No. Money Market Capital Market 1. Money market is the mechanism through which sthort term funds are loaned and borrowed. It designates financial instittutions which handle the purchase, sale and transfer of short term credit instruments. Capital Market is a part of financial system which is concerned with raising capital by dealing in shares, bonds and other long term investments. 2. Commercial banks, acceptance houses, Non Banking Financial Institutions and the Central Bank are the institutions catering to the requirements of short term funds in the money Market. The market where investment instruments like bonds, equities and mortgages are traded is known as the capital market.

Question 38.
List out the achievements of ASEAN.
The ASEAN Declaration states the aims and purposes of the Association as:

1. To accelerate the economic growth, social progress and cultural development in the region;
2. To promote regional peace and stability and adherence to the principles of the United Nations Charter;
3. To promote cooperation among the members of ASEAN through the exchange of knowledge and experience in the field of public sector auditing.
4. To provide a conducive environment and facilities for research, training, and education among the members
5. To serve as a centre of information and as an ASEAN link with other international organizations.

Question 39.
Give two examples for direct tax.

1. Equity: Direct taxes are progressive i.e. rate of tax varies according to tax base. For example, income tax satisfies the canon of equity.
2. Certainity: Canon of certainty can be ensured by direct taxes. For example, an income tax payer knows when and at what rate he has to pay income tax.

Question 40.
Define economic planning.
Economic Planning is “collective control or suppression of private activities of production and exchange”. – Robbins
“Economic Planning in the widest sense is the deliberate direction by persons in-charge of large resources of economic activity towards chosen ends”. – Dalton

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
Compare the feature among Capitalism, Secularism and Mixedism.

[OR]

(b) What are the difficulties involved in the measurement of national income?
Difficulties in Measuring National Income:
In India, a special conceptual problem is posed by the existence of a large, unorganised and non-monetised subsistence sector where the barter system still prevails for transacting goods and services. Here, a proper valuation of output is very difficult.

Transfer payments:

1. Government makes payments in the form of pensions, unemployment allowance, subsidies, etc. These are government expenditure.
2. But they are not included in the national income.
3. Because they are paid without adding anything to the production processes.
4. During a year, Interest on national debt is also considered transfer payments because it is paid by the government to individuals and firms on their past savings without any productive work.

Difficulties in assessing depreciation allowance:

1. The deduction of depreciation allowances, accidental damages, repair and replacement charges from the national income is not an easy task.
2. It requires high degree of judgment to assess the depreciation allowance and other charges.

Unpaid services:

1. A housewife renders a number of useful services like preparation of meals, serving, tailoring, mending, washing, cleaning, bringing up children, etc.
2. She is not paid for them and her services are not directly included in national income.

Income from illegal activities:

1. Income earned through illegal activities like gambling, smuggling, illicit extraction of . liquor, etc., is not included in national income.
2. Such activities have value and satisfy the wants of the people but they are not considered as productive from the point of view of society.

Production for self-consumption and changing price:

1. Farmers keep a large portion of food and other goods produced on the farm for self consumption.
2. The problem is whether that part of the produce which is not sold in the market can be included in national income or not.

Capital Gains:

1. The problem also arises with regard to capital gains.
2. Capital gains arise when a capital asset such as a house, other property, stocks or shares, etc. is sold at higher price than was paid for it at the time of purchase.
3. Capital gains are excluded from national income.

Statistical problems:

1. There are statistical problems, too. Great care is required to avoid double counting. Statistical data may not be perfectly reliable, when they are compiled from numerous sources.
2. Skill and efficiency of the statistical staff and cooperation of people at large are also equally important in estimating national income.

Question 42 (a).
Write short note on the implications of Say’s law.
Implications of Say’s Law:

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

[OR]

(b) State the propositions of Keynes’s Psychological Law of Consumption.
Propositions of the Law:
This law has three propositions:
(i) When income increases, consumption expenditure also increases but by a smaller amount. The reason is that as income increases, we wants are satisfied side by side, so that the need to spend more on consumer goods diminishes. So, the consumption expenditure increases with increase in income but less than proportionately.

(ii) The increased income will be divided in some proportion between consumption expenditure and saving. This follows from the first proposition because when the whole of increased income is not spent on consumption, the remaining is saved. In this way, consumption and saving move together.

(iii) Increase in income always leads to an increase in both consumption and saving. This means that increased income is unlikely to lead to fall in either consumption or saving. Thus with increased income both consumption and saving increase.

Question 43 (a).
Bring out the methods of credit control.
Methods of Credit Control:
1. Bank Rate Policy:
The bank rate is the rate at which the Central Bank of a country’ is prepared to re-discount the first class securities.

2. Open Market Operations:

• In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market.
• In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

3. Variable Reserve Ratio:
(i) Cash Reserves Ratio:

• Under this system the Central Bank controls credit by changing the Cash Reserves Ratio.
• For example, if the Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit,this will be harmful for the larger interest of the economy.
• So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank.

(ii) Statutory Liquidity Ratio:

• Statutory Liquidity Ratio (SLR) is the amount which a bank has to maintain securities.
• The quantum is specified as some percentage of the total demand and time liabilities (i.e., the liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one month’s time due to maturity) of a bank.

[OR]

(b) Briefly explain the gains from International Trade Categories.

• International trade helps a country to export its surplus goods to other countries and secure a better market for it.
• Similarly, international trade helps a country to import the goods which cannot be produced at all or can be produced at a higher cost.
• The gains from international trade may be categorized under four heads.

I. Efficient Production:
International trade enables each participatory country to specialize in the production of goods in which it has absolute or comparative advantages. International specialization offers the following gains.

1. Better utilization of resources.
2. Concentration in the production of goods in which it has a comparative advantage.
3. Saving in time.
4. Perfection of skills in production.
5. Improvement in the techniques of production.
6. Increased production.
7. Higher standard of living in the trading countries.

II. Equalization of Prices between Countries:
International trade may help to equalize prices in all the trading countries.

1. Prices of goods are equalized between the countries (However, in reality it has not happened).
2. The difference is only with regard to the cost of transportation.
3. Prices of factors of production are also equalized (However, in reality it has not happened).

III. Equitable Distribution of Scarce Materials:
International trade may help the trading countries to have equitable distribution of scarce resources.

1. Availability of variety of goods for consumption.
2. Generation of more employment opportunities.
3. Industrialization of backward nations.
4. Improvement in relationship among countries (However, in reality it has not happened).
5. Division of labour and specialisation.
6. Expansion in transport facilities.

Question 44 (a).
Write a note on SAARC.
South Asian Association For Regional Co-Operation (SAARC):

1. The South Asian Association for Regional Co-operation (SAARC) is an organisation of South Asian nations, which was established on 8 December 1985 for the promotion of economic and social progress, cultural development within the South Asia region and also for friendship and co-operation with other developing countries.
2. The SAARC Group (SAARC) comprises of Bangaladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka.
3. In April 2007, Afghanistan became its eighth member.
4. The basic aim of the organisation is to accelerate the process of economic and social development of member states through joint action in the agreed areas of cooperation.
5. The SAARC Secretariat was established in Kathmandu (Nepal) on 16th January 1987.
6. The first SAARC summit was held at Dhaka in the year 1985.
7. SAARC meets once in two years. Recently, the 20th SAARC summit was hosted by Sri Lanka in 2018.

[OR]

(b) Briefly explain facilities offered by IMF.
Facilities offered by IMF:
The Fund has created several new credit facilities for its members. Chief among them are:
(i) Basic Credit Facility:

• The IMF provides financial assistance to its member nations to overcome their temporary difficulties relating to balance of payments.
• A member nation can purchase from the Fund other currencies or SDRs, in exchange for its own currency, to finance payment deficits.
• The loan is repaid when the member repurchases its own currency with other currencies or SDRs.
• A member can unconditionally borrow from the Fund in a year equal to 25% of its quota.
• This unconditional borrowing right is called the reserve tranche.

(ii) Extended Fund Facility:

• Under this arrangement, the IMF provides additional borrowing facility up to 140% of the member’s quota, over and above the basic credit facility.
• The extended facility is limited for a period up to 3 years and the rate of interest is low.

(iii) Compensatory Financing Facility:

• In 1963, IMF established compensatory financing facility to provide additional financial assistance to the member countries, particularly primary producing countries facing shortfall in export earnings.
• In 1981, the coverage of the compensatory financing facility was extended to payment problem caused by the fluctuations in the cost of cereal inputs.

(iv) Buffer Stock Facility:

• The buffer stock financing facility was started in 1969.
• The purpose of this scheme was to help the primary goods (food grains) producing countries to finance contributions to buffer stock arrangements for the stabilisation of primary product prices.

(v) Supplementary Financing Facility:
Under the supplementary financing facility, the IMF makes temporary arrangements to provide supplementary financial assistance to member countries facing payments problems relating to their present quota sizes.

• The IMF established Structural Adjustment Facility (SAF) in March 1986 to provide additional balance of payments assistance on concessional terms to the poorer member countries.
• In December 1987, the Enhanced Structural Adjustment Facility (ESAF) was set up to augment the availability of concessional resources to low income countries.
• The purpose of SAF and ESAF is to force the poor countries to undertake strong macroeconomic and structural programmes to improve their balance of payments positions and promote economic growth.

Question 45 (a).
What are the functions of a modern state?
Functions of Modern State:
The modem state is a welfare state and not just police state. The state assumes greater roles by creating economic and social overheads, ensuring stability both internally and externally, conserving resources for sustainable development and so on.

(i) Defence:

1. The primary function of the Government is to protect the people from external aggression and internal disorder.
2. The government has to maintain adequate police and military forces and render protective
services.

(ii) Judiciary:

1. Rendering justice and settlement of disputes are the concern of the government.
2. It should provide adequate judicial structure to render justice to all classes of citizens,

(iii) Enterprises:

1. The regulation and control of private enterprise fall under the purview of the modem State.
2. Ownership of certain enterprises and operating them successfully are the responsibilities of the government.

(iv) Social Welfare:
It is the duty of the state to make provisions for education, social security, social insurance, health and sanitation for the betterment of the people in the country.

(v) Infrastructure:
Modem States have to build the base for the economic development of the country by creating social and economic infrastructure.

(vi) Macro-economic policy:
The Government has to administer fiscal policy and monetary policy to achieve macro¬economic goals.

(vii) Social Justice:

1. During the process of growth of an economy, certain sections of the society gain at the cost of others.
2. The Government needs to intervene with fiscal measures to redistribute income.

(viii) Control of Monopoly:
Concentration of economic power is another evil to be corrected by the Government. So, the state intervenes through control of monopolies and restrictive trade practices to curb concentration of economic power.

[OR]

(b) What are the causes of water pollution?
Water pollution is caused due to several reasons. Here are the few major causes of water pollution:
(i) Discharge of sewage and waste water:

1. Sewage, garbage and liquid waste of households, agricultural runoff and effluents from factories are discharged into lakes and rivers.
2. These wastes contain harmful chemicals and toxins which make the water poisonous for aquatic animals and plants.

(ii) Dumping of solid wastes:
The dumping of solid wastes and litters in water bodies cause huge problems.

(iii) Discharge of industrial wastes:
Industrial waste contains pollutants like asbestos, lead, mercury, grease oil and petrochemicals, which are extremely harmful to both people and environment.

(iv) Oil Spill:
Sea water gets polluted due to oil spilled from ships and tankers while travelling. The spilled oil does not dissolve in water and forms a thick sludge polluting the water.

(v) Acid rain:

1. Acid rain is pollution of water caused by air pollution.
2. When the acidic particles caused by air pollution in the atmosphere mix with water vapor, it results in acid rain.

(vi) Global warming:
Due to global warming, there is an increase in water temperature as a result aquatic plants and animals are affected.

(vii) Eutrophication:

1. Eutrophication is an increased level of nutrients in water bodies.
2. This results in bloom of algae in water.
3. It also depletes the oxygen in water which negatively affects fish and other aquatic animal population.

Question 46 (a).
Explain different sources of e-waste.

[OR]

(b) What are the non-economic factors determining development?
Non-Economic. Factors:

1. Human Resource
2. Technical Know-how
3. Political Freedom
4. Social Organization
6. Desire for Development
7. Moral, ethical and social values
8. Casino Capitalism
9. Patrimonial Capitalism

Non-Economic Factors: ‘Economic Development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress.
(i) Human Resources:

• Human resource is named as human capital because of its power to increase productivity and thereby national income.
• There is a circular relationship between human development and economic growth.
• A healthy, educated and skilled labour force is the most important productive asset.
• Human capital formation is the process of increasing knowledge, skills and the productive capacity of people.

(ii) Technical Know-how:
As the scientific and technological knowledge advances, more and more sophisticated techniques steadily raise the productivity levels in all sectors.

(iii) Political Freedom:
The process of development is linked with the political freedom.

(iv) Social Organization:
People show interest in the development activity only when they feel that the fruits of development will be fairly distributed.

• Corruption is a negative factor in the growth process.
• Unless the countries root-out corruption in their administrative system, the crony capitalists and traders will continue to exploit national resources.

(vi) Desire for development:
The pace of economic growth in any country depends to a great extent on people’s desire for development.

(vii) Moral, ethical and social values:

• These determine the efficiency of the market, according to Douglas C. North.
• If people are not honest, market cannot function.

(viii) Casino Capitalism:
If People spend larger proportion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer, according to Thomas Piketty.

(ix) Patrimonial Capitalism:
If the assets are simply passed on to children from their parents, the children would not work hard, because the children do not know the value of the assets.

Question 47 (a).
Describe different types of Planning.

(i) Democratic Vs Totalitarian:
A form of rule in which the government attempts to maintain ‘total’ control over society, including all aspects of the public and private lives of its citizens.

(ii) Centralized Vs Decentralized:

• Under centralized planning, the entire planning process in a country is under a central planning authority.
• This authority formulates a central plan, fixes objectives, targets and priorities for every sector of the economy.
• In other words, it is called ‘planning from above’.

(iii) Planning by Direction Vs Inducement:
Under planning by direction, there is a central authority which plans, directs and orders the execution of the plan in accordance with pre-determined targets and priorities.

(iv) Indicative Vs Imperative Planning:

• Indicative planning is peculiar to the mixed economies. It has been in practice in France since the Monnet Plan of 1947-50.
• In a mixed economy, the private sector and the public sector work together.
• Under this plan, the outline of plan is prepared by the Government.
• Then it is discussed with the representatives of private management, trade unions, consumer groups, finance institutions and other experts.

(v) Short, Medium and Long term Planning:

• Short-term plans are also known as ‘controlling plans’.
• They encompass the period of one year, therefore, they are also known as ‘annual plans’.

(vi) Financial Vs Physical Planning:
Financial planning refers to the technique of planning in which resources are allocated in terms of money while physical planning pertains to the allocation of resources in terms of men, materials and machinery.

(vii) Functional Vs Structural Planning:
Functional planning refers to that planning which seeks to remove economic difficulties by directing all the planning activities within the existing economic and social structure.

(viii) Comprehensive Vs Partial Planning:
General planning which concerns itself with the major issues for the whole economy is known as comprehensive planning whereas partial planning is to consider only the few important sectors of the economy.

[OR]

(b) Discuss the Economic planning of Democratic planning and Totalitarian planning.