Bhagya

Teachers recommend solving Kerala Syllabus Plus Two Political Science Previous Year Question Papers and Answers Pdf March 2023 to improve time management during exams.

Kerala Plus Two Political Science Previous Year Question Paper March 2023

From Questions 1 to 11 answer for 16 scores.

Question 1.
Find out the leader who played a major role in the integration of princely states.
(a) Nehru
(b) Potti Sriramulu
(c) Sardar Vallabhbhai Patel
(d) Mahatma Gandhi
Answer:
(c) Sardar Vallabhbhai Patel

Question 2.
Who was the first Chief Election Commissioner of India?
(a) Sukumar Sen
(b) D.P. Mishra
(c) T.N.Seshan
(d) P.D. Tandon
Answer:
(a) Sukumar Sen

Question 3.
Identify the leader of Bharatiya Jan Sangh.
(a) A.K. Gopalan
(b) c. Rajagopalachari
(c) Syama Prasad Mukherjee
(d) Jayaprakash Narayan
Answer:
(c) Syama Prasad Mukherjee

Question 4.
Expand the foHowing :
• CTBT
• NPT
Answer:
CTBT : Comprehensive Test Ban Treaty
NPT : Nuclear Non-Proliferation Treaty

Question 5.
Match the following:
(a) Non-Cong ressism
(b) Jai Jawan Jai Kisan
(c) Garibi Hatao
(d) Syndicate
Answer:
(a) Non-Congressism : Ram Manohar Lohia
(b) Jai Jawan Jai Kisan : Lai Bahadur Shastri
(c) Garibi Hatao : Indira Gandhi
(d) Syndicate : K. Kamaraj

Question 6.
The Commission appointed in 1977 by Janata Government to inquire into the excesses committed during emergency
(a) Shah Commission
(b) Sarkaria Commission
(c) Mandal Commission
Answer:
Shah Commission

Question 7.
The Punjab accord was signed by and
(a) Rajiv Gandhi and Harchand Singh Longowal
(b) Indira Gandhi and Angami Zaper Phizo
(c) Rajiv Gandhi and Laldenga
Answer:
Rajiv Gandhi and Harchand Singh Longowal

Question 8.
Properly arrange the listed facts on Bharatiya Kisan Union and Anti-Arrack Movement in the table given below:
(a) Focused on sexual violence against women
(b) Most of the members belonged to a single community
(c) Western UP and Haryana
Answer:

1. Anti-Arrack Movement
   • Focused on sexual violence against women
   • Adult literacy drive
   • Against domestic violence
2. Bharatiya Kisan Union
   • Most of the members belonged to a single community.
   • Western UP and Haryana
   • Guaranteed supply of electricity at reasonable rate.

Question 9.
Name the First Secretary General of UNO.
Answer:
Trygve Lie

Question 10.
Which country adopted “Open Door Policy” ?
Answer:
China

Question 11.
Categorize the following countries to members of European Union and ASEAN :
France, Cambodia, Spain, Germany, Vietnam, Malaysia
European Union
ASEAN
Answer:
European Union

1. France
2. Spain
3. Germany ASEAN
4. Cambodia
5. Vietnam
6. Malaysia

Answer any four questions from 12 to 16. Each carries 3 scores.

Question 12.
Write any 3 objectives of Jawaharlal Nehru’s Foreign Policy.
Answer:

1. Preserve the hard earned sovereignty.
2. Protect territorial integrity.
3. Promote rapid economic development.

Question 13.
What were the main factors responsible for the dominance of Congress Party in the first 3 general elections?
Answer:

1. Inherited the legacy of the national movement.
2. Organisational structure all over the country.
3. Charismatic leadership of Nehru.

Question 14.
Briefly explain the consequences of Shock Therapy.
Answer:
State controlled industries were collapsed.

1. Inflation was high.
2. Value of Ruble declined.
3. Withdrawal of Government subsidies.

Question 15.
Prepare a short note on the concept of “Common but Differentiated Responsibility”.
Answer:
Developed countries are responsible for the damage apd degradation to the environment

1. The developing countries are in the process of industrialization. They cannot be forced to impose restrictions like others.
2. Environmental! laws should be taken into account the needs of developing countries, before imposing control.

Question 16.
What are the 3 components of India’s Security Strategy?
Answer:

1. Strengthening the Military Capabilities
2. Strengthening International Norms and Institutions
3. Security challenges within the country.

Answer any four questions from 17 to 21. Each carries 4 scores.

Question 17.
Towards the end of 1980’s, five major developments occurred which brought long lasting impact on Indian Politics. Explain those developments.
Answer:
Defeat of the congress system

1. Mandal commission report
2. New economic policy
3. Assassination of Rajiv Gandhi

Question 18.
Bring out the major differences in the objectives of First and Second Five Year Plans.
Answer:

• First five year plan
  1. Period between 1951-56
  2. K.N. Raj prepared the draft plan
  3. Slow development
  4. Emphasis on agriculture
• Second five year plan
  1. Period between 1956 -61
  2. PC Mahalanobis prepared the plan.
  3. Rapid growth
  4. Emphasis on industry

Question 19.
Write a short note on Chipko Movement.
Answer:
Chipko Movement is considered as one of the first environmental movement in the country. This was a Movement that became famous the world over. It was started in 1973 in two or three villages of Uttarakhand. The Forest Department prevented the villagers from cutting down a certain kind of trees with which they made their working implements.

But the same Forest Department gave permission to a Sports Equipment Manufacturing Company to cut down such trees for commercial purposes. This pro-voked the villagers. When the workers came to cut the trees, the villagers stood near the trees embrac-ing them. (Chipko means embrace). This protest spread to many parts of Uttarakhand. The people raised their voice against the exploitation of nature.

They asked the government not to let outsiders come and exploit their resources. They wanted the power to manage them to’be given to the local people. They also asked for permission to start small scale industries, protecting Nature and the Environment. They also demanded minimum wages for the forest workers who had no land of their own.

As a result of this Movement, the government issued an order prohibiting the cutting down of trees in the Himalayan side for 15 years. The role of women wag great in this Movement. They also fought against social evils like drinking alcohol. With Chipko Movement, people realized that solutions to popular problems could be found through non-politipal movements.

Question 20.
India is emerging as a great power in the interna-tional politics. Explain India’s claims for permanent membership in UN Security Council.
Answer:

1. Largest democratic country in the world
2. Major economic power
3. Contribution to the U. N. Budget
4. Big nation in terms of population.

Question 21.
Examine the role and limitations of SAARC as a forum for facilitating co-operation among the South
Asian Countries.
Answer:

1. South Asian Association of Regional co-operation (SAARC) is a regional initiative among South Asian states to evolve cooperation since 1985.
2. SAARC has initiated SAFTA (South Asian Free Trade Agreement) to free trade zones for whole South Asia.
3. SAARC projected on economic development of its member states to reduce their dependen-cies on non-regional powers. Limitations
4. Some of the Indian neighbours think that the association is dominated by India.
5. SAARC nations are either developing or least de-veloped nations and thus creates insufficiency of funds.

Answer any four questions from 22 to 26. Each carries 5 scores. (4 × 5 = 20)

Question 22.
What is Green Revolution ? Explain its consequences.
Answer:
Green Revolution: Green Revolution is the name given to the policies of the government which aimed at maximum production in the minimum period in the agricultural sector. In the 1960s, the agricultural sector was in a very bad shape. Between 1965 and 67 there were huge droughts in many parts of India. This reduced food production and in many areas there was famine-like condition.

To overcome this crisis, India was forced to seek assistance from countries like America. Following the American policies, we too started some new economic policies. The government wanted self-sufficiency in food and therefore a new agricultural policy was implemented. This policy included farming all lands where irrigation was available, using high yield varieties of seeds and fertilizing the land. Subsidies were given for irrigation and insecticides. It was also decided thatithe government would purchase the produce at a minimum price. All these changes together paved the way for what is known as the Green Revolution.

The Green Revolution brought some positive changes in agricultural growth. Food stuff was easily available. Of course, it was the rich merchants and large farm- owners that were the prime beneficiaries. There was a polarization of the rich and poor. This helped the Left Parties to bring together the poor farmers and the masses. As a result, there arose a powerful Left¬leaning lobby of middle class farmers.

Question 23.
Kashmir issue is not just a dispute between India and Pakistan. It has also internal and external dimensions. Discuss the statement.
Answer:
The following are the major areas of conflict:
a. Following the division, the first dispute was regarding Kashmir. Pakistan claimed Kashmir to be theirs. Even with the 1947-48 and. 1965 wars, this problem could not be solved.

b. Another problem is about the control of the Siachin sector and about the armament race. Since 1990, both the countries have stockpiled nuclear weapons and missiles.

c. India accuses Pakistan of aiding Kashmiri extremists by giving them weapons. They also give money, training, and security to these terrorists. The Inter Services intelligence (ISI) makes anti-Indian propaganda in the North Eastern regions of India. They also make anti- Indian propaganda secretly through Bangladesh and Nepal. Pakistan accuses India of giving help to the insurgents in Sindh and Baluchistan.

d. Until 1960, there were also disputes between India and Pakistan regarding the sharing of river waters. In 1960 with the help of the World Bank both countries signed the Indus Waters’Treaty. It is in force even now.

e. There is one more thing about which the two countries have not reached an agreement – Sir Creak in the Rann of Kutch.

Question 24.
The American Hegemony has military, economic and cultural dimensions. Describe three different aspects of US Hegernony.
Answer:
World nations try to gain and maintain dominance over others by using military, economic and cultural power. During the Cold War the fight was between the Soviet Union and America. With the disintegration of the Soviet, Union America remains the only Superpower. Dominance or hegemony is attained through three things:
a) Hard Power
b) Structural Power
c) Soft Power

Hard Power:
This includes military power and the relations between nations. Today America is in the forefront of military power. There is nobody to challenge its military might. It has the capacity to reach any corner of the world any moment. They spend a major part of their budget to maintain this position, they spend huge sums of money for research and technological developments. It is technology that keeps America in the forefront. With their military might they are even ready to police the world, and punish the culprits.

Structural Power:
This dominance is based on the economic structure. The global economic system relies on America. If America helps the global economic system, it is mainly for their benefits and profits. But America does a lot of good things for the world. For example, communication channels through the oceans. Merchant ships travel through sea routes and America has much authority on the water transport system. It is the American navy that keeps the sea-routes safe„for ships.

The next is the Internet. In fact it was an American military project. It was started in 1950. Today the global network functions using satellites. Most of them belong to America. 28% of the world econemy is controlled by America. 15% of the international trade is also done by them. In any economic sector, at least one of out of three biggest companies will be American. The world economic structure follows the Breton Woods style of America. The World Bank, I.M.F. and World Trade Organization etc. are examples of American supremacy in world business and finance.

Now comes another example – the MBA degree. It was America that made this course and the degree so popular. It was Americans who discovered that business is a profession that could be taught. The first Business School was established in Pennsylvania in 1881. ts name was Wharton School. Today in all countries MBA has become a prestigious degree.

Soft Power : This is the ideological and cultural dominance. America has become the model for all other nations and they try to copy America. In weak countries, America is able to make the people like its culture. We all speak highly of the American life style and personal success. America is number one in the world. By using ‘soft power, and not force, America is able to achieve this dominance over the world.

Question 25.
Globalisation is a multidimensional concept. Define globalisation and explain its political and cultural consequences.
Answer:
The concept of globalization is the exchange of ideas, materials and human resources. Now this exchange is possible among nations without much control. Looked at this way, it assumes different levels of political, economic and cuftural meanings. In his sense it has merits and demerits. Some societies may be affected only very little, but some may be affected much more. Let us see how it works: Political results: Politically speaking, the authority of the government gets weaker.

It will have to reduce its welfare schemes. Instead of social welfare, the stress is on the market. With the coming MNCs (Multi National Corporations), it becomes difficult for the governments to take independent decisions. According to the advocates of globalization, no political power of the government is lost. The essential things will remain under the authority of the government. Since technology has advanced so much, governments can do a lot. Technology helps governments to know the details of their citizens and make the administration efficient.

Economic Results: Globalization has influenced the economic sphere greatly. World Bank, IMF, WTO etc. play big roles. AU these are controlled mainly by America and its allies. The world economy itself has come under their influence. In this, a re-thinking is necessary. It is high time that we found out who the beneficiaries of globalization are.

As a result of globalization, import controls are reduced or removed. The developed nations can now invest their capital in the developing nations. Investing in the developing nations is more profitable. Technologies develop without any limits of borders. But regarding the movement of people, the developed nations have made certain rules. Their countries are kept safe from foreign workers through the policy of Visa. Because of the visa rules, the jobs of their citizens are not taken away by emigrants.

There are arguments in favour and against economic globalization. Although the policy is the same, different places get different results. Those who think of social justice can look at the limitations on governmentonlyasademeritofglobalization. Those who are economically backward need some special security not to suffer from the demerits of globalization. Some people believe that globalization makes the poor people poorer and so it must be stopped. But globalization brings about huge economic growth and the social welfare of many. Large scale commerce makes the economy better. It is not easy to prevent globalization in the forward march of history.

Question 26.
The Chinese economy has undergone several trans-formations. Identify the developmental strategy adopted by China.
Answer:
The new economic policy has helped China a lot to bring it out of the moribund economic state. Privatization in the agricultural sector made crop production increase considerably and the rural economic sector improved. Thus there was considerable increase in the rural industrial sector. Chinese economy became better as a result of the increase in industry and rural growth. In 2001, China entered the WTO and thus it was able to trade with outside countries. Its decision to work jointly with the world economic system will definitely affect its economic model. Although some of these things are against Communist ideologies, the Chinese development model has become the cornerstone of its development.

Answer any two questions from 27 to 29. Each carries 8 scores. (2 × 8 = 16)

Question 27.
“The process of partition was very difficult to imple-ment and its consequence was painful.” Based on this statement, explain the process of partition and its consequences.
Answer:
There were three reasons for that. First of all in British India, there was not a single area which had only Muslims. There were two areas in which the majority was Muslims, one in the West and the other in the East. Therefore Pakistan was formed consisting of two areas – West Pakistan and East Pakistan. Between them there were large areas of Indian Territory.

Secondly, not all areas with majority Muslirfi population wanted to become part of Pakistan. Khan Abdul Gaffer Khan, who was the leader of the North Western Province had objected to the Two-Nation Theory. But ignoring his objection, the North West Province was included in Pakistan.

The third problem was that British India’s Punjab and Bengal were areas with Muslim majority. But in these huge provinces there were very many non- Muslims. Therefore the Provinces were divided into Districts and Panchayats depending on the religious majority of the population there.

The result was that on the day of Independence many people did not know to which country they belonged – Indig or Pakistan. It deeply wounded the people. The problem of the minorities in each country was the worst of all. The Hindus and Sikhs in the Pakistani areas and the Muslims in Punjab and Bengal were unfortunate preys to this division of the country. When the division was decided upon, there was large scale violence against the minorities in both the countries.

The division of British India in 1947 into India and Pakistan was a very tragic incident in history. In the border areas many people on both sides were killed because of their religion and caste. Huge cities like Lahore, Amritsar and Calcutta became religious areas. Muslims avoided going to areas of Hindus and Sikhs. Similarly Hindus and Sikhs did not want to go near the Muslim areas. People were forced to flee their homes, suffering a lot of difficulties on their way.

Many of the people in the minorities in the border areas had to live in refugee camps. The governments and the police were not there to help them. People had to walk or ride in some vehicles from their homes to their new places. During the journey, many were attacked and killed; women were raped. Many were forced to accept the majority religion and marry people against their will. In many homes women were killed by their own relatives in the name of honour.

Children were separated from their parents and guardians. People who came to the new land had no houses and they had to live in refugee camps. Not only the land, but even moveable properties like tables and chairs were divided. The government and railway workers were divided. People who were liv¬ing like brethren were divided. It is believed that between 5 to 10 lakh people lost their lives in this tragic division of the country.

Question 28.
Discuss the background and causes which led to the declaration of Emergency in India.
• Economic Context
• Gujarat and Bihar Movements
• Conflict with Judiciary
• Judgement of Allahabad High Court
Answer:
After the 1971 election, Indira became a popular leader with a lot of support from the people. This time there were serious problems in the Party. There were three main reasons:
a) Economic Reasons
b) Gujarat & Bihar Movement
c) Dispute with the Judiciary

The main slogan in the 1971 election was ‘garibi hatao’. But when the government came to power it could not improve the economic condition of the country. There were a number of reasons for that. First of all there was the refuge problem. Then there was the Bangladesh Crisis, followed by the Indo- Pakistan War. All these things created financial problems. Secondly, after the War, America stopped its aids to India. Thirdly, there was a sharp increase in oil prices. The 4th reason was inflation which made the life of ordinary people very difficult.

The 5th problem was negative growth in industrial output. Unemployment increased, especially in the rural sector. Sixthly, the salaries of government employees had to be reduced and oven stopped. Seventhly, lack of rain caused serious shortfall in foodstuff.  All the above things created an economic crisis in the country. There was general discontentment in the country. This gave the Opposition Parties an opportunity to organise protests.

Guiarat and Bihar Movement:
The second biggest problem was the students’ protest in Gujarat and Bihar which were Congress-ruled States. The main reason was the increase in the prices of essential commodities. Shortage of food, unemployment and corruption made the students angry. In both these States the Opposition Parties supported the students. In Gujarat, Presidential Rule was imposed. At this time the main opponent of Indira Gandhi and the leader of Congress (O), Morarji Desai, decided to go on an indefinite hunger strike. He did that for demanding elections in Gujarat. In June 1975, because of heavy pressure from various sources, election was conducted. Congress lost the election.

In Bihar the students invited Jay Prakash Narayan to lead their protest. He accepted the invitation insisting that the protest must be non-violent. He asked for the dismissal of the Bihar government. He argued that there was a need for a revolution in social, economic and political spheres. But the Bihar government refused to resign. The entire country discussed the issue. Jay Prakash Narayan wanted to spread the protest to all parts of the country. In the meantime the railway workers went on a strike.

It would make the entire country come to a standstill. In 1975, Jay Prakash Narayan organized a march to the Parliament. It was the biggest rally the capital had ever seen. The Opposition saw in him an alternative to Indira Gandhi. Both the protests were anti-Congress. Voices also rose against the leadership of Mrs. Gandhi. She believed that all this was done to take revenge on her.

Dispute with the Judiciary:
Another reason for the declaration of Emergency was Indira Gandhi’s dispute with the Judiciary. The Supreme Coursaid that some of the things the government did were against the Constitution. Congress argued that the Supreme Court judgement was against democracy and the authority of the Parliament. The Party said that the Court was standing against some welfare measures taken to help the poor people.

The dispute was mainly in three things. Firstly, Can the  Parliament change the Fundamental Rights? The Court said no. Secondly, Can the Parliament change ownership of land? Again the Court said no. Thirdly, the Parliament said that it had the right to reduce fundamental rights. It amended the Constitution. But the Supreme Court objected. All these were the reasons for the dispute between the Government and the Supreme Court.

There were two more reasons. In the Kesavananda Bharati case, the Supreme Court judged that the Parliament can’t change the basic structure of the Constitution. Soon the post of the Chief Justice became vacant. Normally the senior most judge is appointed as the Chief Justice. But keeping aside 3 eligible Judges, the government appointed A.N. Roy as the Chief Justice. This appointment became controversial. Besides, the Uttar Pradesh High Court declared the election of Indira Gandhi as null and void. All these were the reasons for Mrs Gandhi to declare Emergency in-June 1975.

Question 29.
Soviet Union, the second most powerful country in the world disintegrated in 1991. Analyse the various factors that led to the disinte-gration of the USSR.
Answer:
1. The control exercised by the Soviet government on its citizens made their life difficult.

2. There was no freedom of expression or democracy.

3. Many institutions needed reforms. But the Communist Party strictly controlled them and reforms were not possible.

4. The Party refusedto give people their rights. The Soviet Union was a Union of 15 Republics. They had their own cultures and problems.

5. Although on paper there were 15 Republics, only Russia was allowed to exercise control. Russia dominated the other  republics and the people of the other republics were either ignored or suppressed.

6. Although the Soviet Union was able to maintain its equality with the US in arms race, it was very costly for them. Western technology was better than the Russian technology. The political and economic needs of the Soviet people were not taken care of by the Soviet government.

7. Soviet Union used most of its resources to develop atomic weapons, to make arms, to increase military facilities and to develop its satellite East European countries.

8. The go-slow policy, refusal to correct mistakes and the closed door policy quickened the country’s downfall.

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.

Kerala Plus Two Economics Board Model Paper 2021 with Answers

Answer any number of questions from 1 to 41 upto a maximum score of 80. Questions from a to / carry 1 score each. (12 × 1 = 12)

Question 1.
a. Who is the founding father of modem economics?
(i) Adam Smith
(ii) J.M.Keynes
(iii) Alfred Marshall
(iv) PaulA.Samuelson
Answer:
(i) Adam Smith

b. ‘Problem of Choice’ arises out of
(i) Scarcity of resources
(ii) Abundances of resource
(iii) Limited wants
(iv) Growth of resources
Answer:
(i) Scarcity of resources

c. Want satisfying capacity of a commodity is known as
(i) Demand
(ii) Supply
(iii) Utility
(iv) Production
Answer:
(iii) Utility

d. The difference between gross investment and depreciation is
(i) Inventory
(ii) Saving
(iii) Consumption
(iv) Net Investment
Answer:
(iv) Net Investment

e. Total revenue per unit of output is called
(i) Marginal Revenue
(ii) Total Revenue
(iii) Total Cost
(iv) Average Revenue
Answer:
(iv) Average Revenue

f. Supply remains constant and demand declines, the equillibrium price
(i) Constant
(ii) Decreases
(iii) Increases
(iv) First increases then constant
Answer:
(ii) Decreases

g. Central Bank of India is:
(i) Reserve Bank of India (RBI)
(ii) State Bank of India (SBI)
(iii) CanaraBank
Answer:
(i) Reserve Bank of India (RBI)

h. Which among the following mentions the concept of Average Propensity to Consume (APC)?
(i) \(\frac{\Delta C}{\Delta Y}\)
(ii) \(\frac{\Delta S}{\Delta Y}\)
(ii) \(\frac{C}{Y}\)
(iv) \(\frac{S}{Y}\)
Answer:
(i) \(\frac{\Delta C}{\Delta Y}\)

i. Two sector economy includes
(i) Firms and Government
(ii) Firms and Households
(iii) Firms and External Sector
(iv) Households and Government
Answer:
(ii) Firms and Households

j. The market structure in which there are only two sellers is called
(i) Monopoly
(ii) Perfect competition
(iii) Duopoly
(iv) Monopolistic competition
Answer:
(iii) Duopoly

k. What does a point inside the production possibility frontier represent?
(i) The maximum use of resources
(ii) Under utilisation of resources
(iii) The over use of resources
(iv) The optimum use of resources
Answer:
(ii) Under utilisation of resources

l. Identify ‘Capital Receipts’ from the following
(i) Personal Income Tax
(ii) Service Tax
(iii) Sale of shares in Pdblic Sector Undertakings
(iv) Customs duties
Answer:
(iii) Sale of shares in Pdblic Sector Undertakings

Questions from 2 to 13 carry 2 scores each. (12 × 2 = 24)

Question 2.
Complete the table given below:

Factors of Production	Remuneration
Land
Labour
Capital
Organisation

Answer:

Factors of Production	Remuneration
Land	Rent
Labour	wages
Capital	Interest
Organisation	Profit

Question 3.
Write any two features of ‘Centrally Planned Economy1.
Answer:
Welfare motive is centralized planning.

Question 4.
Recognise the type of utility analysis from the following statements.
(a) The level of utility can be expressed in numbers.
(b) The level of utility can be expressed in rank.
Answer:
Centralised planning
a. Cardinal analysis
b. Ordinal analysis

Question 5.
Classify the following into consumption goods and capital goods.
(a) Food
(b) Implements
(c) Machines
(d) Clothing
Answer:
Food clothing : consumption goods
Implements machines : capital goods

Question 6.
What do you mean by ‘Long Run’ in production function?
Answer:
Long run is a time period when all the factors of production becomes variable.

Question 7.
Write any two reasons for rightward shift of demand curve.
Answer:
Increase in the income of the consumers. An increase in the price of substitute goods.

Question 8.
List out the four major sectors of the economy.
Answer:
Household, Firms, Government, External sector.

Question 9.
What is ‘final goods’? Give an example.
Answer:
sector Final goods are those goods that are ready to be consumed. They need not go through any more production process, eg. shirt.

Question 10.
Distinguish between Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).
Answer:
Marginal propensity to consumer (MPC) refers to the extra spending on consumption when one unit in-crease in income. Marginal propensity to save (MPS) refers to the extra saving due to one unit increase in Income.
MPC = \(\frac{\Delta C}{\Delta Y}\)
MPS = \(\frac{\Delta S}{\Delta Y}\)

Question 11.
Write any two factors which determine price elasticity ofdamand.
Answer:
The nature of the product i.e. necessity or luxury goods. The number and closeness of subtitutes.

Question 12.
What is the difference between ’Devaluation’ and ‘Revaluation’?
Answer:
Devaluation refers to the deliberate reduction in the value of the currency. Revaluation refers to the delib-erate raise in the value of the currency.

Question 13.
Define ‘Break even point’.
Answer:
It is a point where a firm operates under the situation of no loss or no profit. TR = TC, or AR = AC.

Questions from 14 to 23 carry 3 scores each. (10 × 3 = 30)

Question 14.
What are the basic economic problems of an economy?
Answer:
What to produce?
Howto produce?

Question 15.
Define substitute goods. Give two examples.
Answer:
Substitute goods are those goods that can be sub-stituted each other.
eg: black pen and blue pen Rail journey and Road journey

Question 16.
Write any three features of ‘Perfectly Competitive Market’.
Answer:
Very large number of buyers and sellers.
Homogenous products
Free entry and exit
Firm as a price taker

Question 17.
Write a short note on ‘ex-ante’ and ‘ex-post’ concept with suitable examples.
Answer:
Ex-ante refers to the expected or an eg: ex ante consumption, ex ante investment.
Ex-post refers to the actual or realised, eg: expost consumption, ex post investment.

Question 18.
Complete the chart given below:

Answer:
A. Revenue > expenditure → Surplus budget
B. Revenue < expenditure → Deficit budget
C. Revenue = expenditure → Balanced budget

Question 19.
Prepare a brief note on intermediate goods with suitable examples.
Answer:
Intermediate goods are in between raw materials and final goods. They are raw materials gone through some production process yet cannot be consumed directly. eg: Steel sheets for making cars.

Question 20.
List out the profit maximising condition of a firm in a perfectly competitive market.
Answer:
MC = MR
Slope of MC positive
P ≥ AVC
MC = MR

Question 21.
List three different ways in which ‘oligopoly firm may behave.
Answer:
They may be in equillibrium as a monopolist. They will achieve equilibrium as in the case of per-fect competition. In practice their equillibrium will be amidst these two.

Question 22.
Write any three impacts of the Great Depression of 1929.
Answer:
Huge unemployment. Unemployment increased from 3 to 25 percentage. Output fell. 33% fall in output. Demand was low.

Question 23.
Explain the concept of liquidity trap.
Answer:
Liquidity trap refers to a situation wher at a lower rate of interest the speculative demand for money becomes perfectly elastic.

Questions from 24 to 31 carries 4 scores each. (8 × 4 = 32)

Question 24.
Observe the following diagram which shows circular flow of income.

(a) What does ’A’ and ‘D’ indicate? (2)
(b) Identify the methods of National Income calcula-tion corresponding to ‘B’ and ‘C.
Answer:
A → spending on goods and services.
D → factor services
B → Total output/Gross value added method
C → Income Method

Question 25.
Analyse the effect of changes in consumption and investment on Aggregate Demand.
Answer:
An increase in consumption or investment will lead to an increase in Aggregate Demand.
AD = C + 1

Aggregate demand will shift from AD to AD₁. This will lead to an increase in national income from OY₁

Question 26.
What is ‘Indifference Curve’? Write three features of Indifference curve.
Answer:
Indifference curve shows the different combinations of two commodities that give the consumer the same level of satisfaction. Indifference curves are convex to the point of origin. Indifference curve do not intersect. Higher the indifference curve higher will be the satis-faction.

Question 27.
Observe the diagram given below:

(a) Identify the diagram which shows price floor and price ceiling. (2)
(b) What is price ceiling and price floor? (2)
Answer:
A. Ceiling price
B. Price floor
C. Ceiling is the price fixed by the government below the market price to suppot the consumers. Price floor is the price fixed by the government to support the producers above the market price.

Question 28.
Write any two objectives of government budget. Ex-plain any one. of them.
Answer:

• Allocation function
• Distribution function
• Stabilization function

Allocation function refers to the provision of public goods.
Distribution function refers to the imposition of taxation and government expenditure.
Stabilisation function refers to the adjustment of Aggregate demand through fiscal policy.

Question 29.
Differentiate ‘Balance of Payments’ and ‘Balance of Trade’.
Answer:

1. Balance of payment refers to the all economic transactions of an economy with the rest of the world. It has two components that is current account and capital account.
2. Balance of trade refers to the difference between export and import in the trade in goods of the current account of the balance of payment.

Question 30.
Write a brief note on different types of price elasticity of supply.
Answer:

1. Elastic supply pes > 1
2. Inelastic supply pes < 1
3. Unitary Elastic supply pes = 1

Question 31.
What is monopoly? Write any three features of mo-nopoly market.
Answer:
Monopoly is a market structure with a single producer.

1. Single producer
2. Unique product
3. No entry
4. The firm is a price marker.

Questions from 32 to 37 carry 5 scores each. 32 (6 × 5 = 30)

Question 32.
Various concepts are given in Column A. Match them suitably with Column B.

(A)	(B)
Marginal Product	Change in Total Cost per unit of change in output
Short Run	Relationship between inputs used and output produced by a firm.
Production function	Change in output per unit of change in the inputs.
Marginal cost	Change in output per unit of change in the inputs.
Average product	Output per unit of variable inputs.

Answer:

(A)	(B)
Marginal Product	Change in output per unit of change in the output.
Short Run	At least one factor remains fixed.
Production function	Relationship between inputs used and output
Marginal cost	Change in Total Cost per unit of change in output
Average product	Output per unit of variable inputs.

Question 33.
Observe the following diagram that shows Average Product (AP), Marginal Product (MP) and Total Prod-uct (TP) curves.

(a) Identify Total Produdt, Average Product and Mar-ginal Product curves. (3)
(b) State the law of variable proportion.
Answer:
A → Total product
B → Average product
C → Marginal product
Law of variable proportion states that into a fixed factor if more and more variable factors are added initially the total product increases, at an increasing rate, then the rate of reverse falls and reaches the maximum and declines after that.

Question 34.
Explain the components of government budget.
Answer:
Budget is the annual financial statement of the government. Budget has two components. Revenue budget and capital budget. Revenue budget includes revenue receipts and revenue expenditure. Capital budget includes capital receipts and capital expenditure. In revenue receipts tax and non tax revenue are included. In reverse expenditure salary, pension, interest payment included. Capital receipts include loans and revenue from the sale of public sector units Capital expenditure includes the expenditure on land acquisition, buying of machinery etc.

Question 35.
Explain market equilibrium. Describe how supply and demand determines equilibrium price and quantity in competitive market.
Answer:
Market equilibrium is a situation where the quantity demanded and supply are exactly equal. This is shown in the diagram below.

D is the demand curve, S is the supply curve, ‘c’ is the point of equilibrium, OP is the market price and OP is the equilibrium quantity.

Question 36.
Write any two characteristics of public goods and private goods. Classify the following into public goods and private goods.
(a) National Defense
(b) Clothes
(c) Government administration
(d) Foods items
(e) Public Transport
(f) Car
Answer:
Public goods → Non rivalry, non excludability
Private goods → Rivalrous, excludable
Public goods → National defence, govt administra-tions, Public transport.
Private goods → Clothes, food items, car

Question 37.
How the exchange rate determined under a fixed exchange rate system with the help of diagram.
Answer:
Fixed exchange rate is also known as pegged ex-change rate system. Under this system, the exchange rate will be determined by central bank. The intervention made in the foreign exchange market by the central bank to keep exchange rate fixed is known as pegging. This can be explained with the help of diagram which is given below.

Here e* is the market determined exchange rate. Suppose that government fixes exchange rate as e,.
At e₁ exchange rate the demand for foreign exchange is greater than the supply of foreign exchange. If there is no control over exchange rate it will increase to e*. In order to maintain the exchange rate at e₁ the central bank will sell AB amount of foreign exchange in the market. So the exchange will be maintained at e*.

Questions from 38 to 41 carry 8 scores each. (4 × 8 = 32)

Question 38.
Describe ’Income method’ and ’Expenditure method’ for calculating National Income.
Answer:
ii) Income method : The income method ap-proaches national income from the income side. National income is the sum total of the rewards earned by the factors of production in an economy in the form of rent, wage, interest and profit.

GDP = W + P + ln + R

iii) Expenditure method : Expenditure method is an alternative way to calculate the GDP and it looks at the demand side of the production. The expenditure method estimates national income by measuring final expenditure on gross domestic product.
GDP = C + I + G + X – M

Question 39.
List the ’quantitative’ and ’qualitative’ tools used for control the extent of money supply. Explain any two quantitative tools.
Answer:
Quantitative Measures
1. Open market operations
2. Bank rate policy
3. Varying reserve requirement
Qualitative measures
1. Moral suasion
The instruments which RBI uses for conducting monetary policy are as follows.
1) Open Market Operations : It refers to the sale and purchase of government securities by the central bank. RBI purchases government securities to the general public in a bid to increase the stock of high powered money in the economy.

2) Bank Rate Policy: As mentioned earlier, RBI commercial banks by adjusting the value of the bank rate – which is the rate of interest commercial banks have to pay RBI – if they borrow money from it in case of shortage of reserves. A low (or high) bank rate encourages banks to keep smaller (or greater) proportion of their deposits as reserves, since borrowing from RBI is now less (or more) costly than before.

3) Varying Reserve Requirements : Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) also work through the rdroute. A high (or low) value of CRR or SLR helps increase (or decrease) the value of reserve deposit ratio, thus diminishing (or increasing) the value of the money multiplier and money supply in the economy in a similar fashion.

4) Sterilization by RBI: RBI often uses its instruments of money creation for stabilizing the stock of money in the economy from external shocks. This operation of RBI is known as sterilization.

Question 40.
Explain Average Fixed Cost (AFC) and Average Vari-able Cost (AVC). Calculate Total Variable Cost (TVC), Average Variable Cost (AVC) and Short Run Marginal Cost (SMC) from the following:

Output (Q)	TFC	TVC	TC	AVC	SMC
0	10		10
1	10		18
2	10		24
3	10		29
4	10		35
5	10		43
6	10		53

Answer:

Output (Q)	TFC	TVC	TC	AVC	SMC
0	10	0	10	–
1	10	8	18	8	10
2	10	14	24	7	6
3	10	19	29	6.3	5
4	10	25	35	6.25	6
5	10	33	43	6.6	8
6	10	43	53	7.16	10

Average fixed cost is the fixed cost per unit. Average variable cost is the variable cost per unit. AFC can be calculated by dividing the total fixed cost with the quantity. Average variable cost can be calculated by dividing the Total variable cost with quantity.
AFC = \(\frac{T F C}{Q}\)
AVC = \(\frac{T V C}{Q}\)
AFC AFC is a rectangular hyperbola. AVC is a ‘U’ shaped curve.

Question 41.
Observe the diagram given below:

(a) Write the equation of budget line. (1)
(b) Explain why the budget line is downward sloping. (2)
(c) Describe optimal choice of the consumer with the help of diagram. (5)
Answer:
a) P₁ x₁ + P₂ x₂ = M
b) Diminishing Marginal Rate of substitution
c)

E is the optimal choice of the consumer. At point E the budget line is tangent with the indifference curve.

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf Board Model Paper 2022 to improve time management during exams.

Kerala Plus Two Economics Board Model Paper 2022 with Answers

Part – I

A. Answer any 4 questions from 1 to 6. Each caries 1 Score. (4 × 1 = 4)

Question 1.
The relationship between inputs used and output produced:
a) Revenue function
b) Cost function
c) Production function
d) Demand function
Answer:
c) Production function

Question 2.
Steel sheets used for making automobiles is an ex-ample of:
a) Consumer durables
b) Final goods
c) Consumption goods
d) Intermediate goods
Answer:
c) Consumption goods

Question 3.
J.M. Keynes is associated with
a) Macro Economics
b) Welfare Economics
c) Environmental Economics
d) Behavioural Economics
Answer:
a) Macro Economics

Question 4.
The difference between a firm’s Total Revenue and its Total Cost:
а) Average product
b) Profit
c) Average cost
d) Average variable cost
Answer:
b) Profit

Question 5.
The rate at which one exchanged for another cur-rency:
a) Rate of interest
b) Rate of unemployment
c) Rate of inflation
d) Rate of exchange
Answer:
d) Rate of exchange

Question 6.
The change in Total uitlity due to consumption of one additional unit of commodity.
a) Average utility
b) Marginal utility
c) Total utility
d) Marginal rate of substitution
Answer:
b) Marginal utility

B. Answer all questions from 7 to 10. Each carries 1 score. (4 × 1 = 4)

Question 7.
GDP (Gross Domestic Product) + NFIA (Net Faction Income from Abroad) =?
a) Gross National Product
b) Depreciation
c) Net Indirect Taxes
d) Net National Product (NNP)
Answer:
a) Gross National Product

Question 8.
Price Elasticity of a Unity Elastic Demand curve:
a) ed = 1
b) ed = 0
c) ed > 1
d) ed > 1
Answer:
a) ed = 1

Question 9.
The number of sellers in an oligopoly market
a) Very large
b) large
c) Few
d) One
Answer:
c) Few

Question 10.
Which of the following will be determined at the point where the labour supply curve and labour demand curve intersect?
a) Rent
b) Wage rate
c) Rate of interest
d) Profit
Answer:
b) Wage rate

Part – II

A. Answer any 3 questions from 11 to 15. Each carries 2 scores. (3 × 2 = 6)

Question 11.
Elucidate normal goods with example.
Answer:
The goods whose demand increases as income of consumer increases and vice versa are called normal goods. So here existing a positive relationship between income of the consumers and their demand, eg. TV, Computer.

Question 12.
Identify the following concepts:
a) The time period where at least one of the factors of production is dixed.
b) The time period where all the factors of production can be varied.
Answer:
a) Short run
b) Long run

Question 13.
Define the following:
a) Investment
b) Depreciation
Answer:
a) The part of final output that comprises capital goods is called investment.
b) The wear and tear of capital goods is called depreciation or consumption of fixed capital.

Question 14.
Distinguish between Excess demand and Excess supply.
Answer:
a) The situation where market demand is higher than market supply is known as excess demand.
b) The situation where market supply is higher than market demand is known as excess supply.

Question 15.
What do you mean by Marginal Propensity to Con-sume (MPC)?
Answer:
The ratio of change in consumption to change in income is known as MPC. ie. impact of change in income on consumption.

B. Answer any 2 questions from 16 to 18. Each carries 2 scores, (2 × 2 = 4)

Question 16.
List any two motives for which people desire to hold money balance.
Answer:
1. For transaction purpose/motive
2. For speculation purpose / motive

Question 17.
Identify four sectors of the economy from macro-economic point of view.
Answer:
From Macroeconomic point of view an economy has four sectors, they are
Households

Question 18.
Mention any two factors determining the supply curve of a firm.
Answer:
Factors affecting supply curve of a firm
1. Price of input
2. Technology of production.

A. Answer any 3 questions from 19 to 23. Each caries 4 scores. (3 × 4 = 12)

Question 19.
Explain any two central problems of economy re-gaining the allocation of resources.
Answer:
All economies in the world address almost same issues related to economic affairs, these issues are known as central problems of an economy they are (two problems)
1. What to produce
2. How to produce

1. What to produce:
Every economy needs lakhs of goods and services. Since the resources are scarce, all these goods and services cannot be produced. That’s why the question What to produce’ arises. So it is very Important to decide what to produce before the production starts.

2. How to produce:
This problem is related to the selection of production technique. Economies can select their production technique which suits best. They can choose labour intensive technique or capital intensive technique.

Question 20.
The table shows the price and quantity of a com-modity sold in a monoploy.
Answer:

Price	Quality
10	1
8	2
6	3
4	4
2	5

TR = Prise x Quantity
AR = \(\frac{\text { TR }}{\text { Quantity }}\)

b) I singleseller
2. unique product

Question 21.
Explain the function of money.
Answer:
Money plays an important role in the modern word. The vital role played by money can be termed as functions of money. They are

• Primary functions
  1. Medium of exchange
  2. Measure of value
• Secondary functions
  1. Storeof value
  2. Standard of differed payment
  3. Transfer of value
• Contingent functions
  1. Basis of credit
  2. Liquidity
  3. Distribution of National income
  4. Guarantor of solvency

Question 22.
With the help of a diagram analyse the ‘Law of vari able proportion’.
Answer:
Short run production function is known as law of variable proportion or law of returns to a factor. Here only one factor is variable and all other factors are fixed. This law is otherwise known as law of diminishing marginal product. It explains the situation. when more and more units of variable factors are added to fixed factors then total product and marginal product will pass through three stages. They are
1. Increasing returns to a factor
2. Diminishing return to a factor
3. Negative returns to a factor

(1) Stage I : Increasing returns to a factor From the graph we can understand that total product, marginal product and average products are increasing s more variable factors are added. Here in this stage marginal product reaches its maximum.

(2) Stage II : Diminishing returns to a factor Here in this stage total product increases but at a decreasing rate. Both MP and AP declines and marginal product becomes zero, when variable inputs increases.

(3) Stage III : Negative returns to a factor In this stage, total product starts declining, marginal product becomes negative and average product continues to decline but it never becomes zero.

Question 23.
Explain the components of Aggregate Demand (AD)
Answer:
Aggregate demand (AD) is the total demand of an economy.
AD = C + I
C – Consumption
I – Investment

Consumption:
Consumption spending is the largest component of an economy’s aggregate demand, it refers to the total spending of indMduals and households or goods and services in the economy.

Investment:
Investment spending is the total expenditure on new capital goods and services such as machinery, equipment, changes in inventories.

B. Answer any 1 Question from 24 to 25. carries 4 scores. (1 × 4 = 4)

Question 24.
Match the following:

A	B
Long Run Average Cost (LRAC)	Input Combination giving same output
Long Run Marginal Cost (LRMC)	Tc/q
Cobb Douglas. Production Function	Passing through the minimum of LRAC
Isoquant	Long Run Production Function

Answer:

A	B
Long Run Average Cost (LRAC)	Tc/q
Long Run Marginal Cost (LRMC)	Passing through the minimum of LRAC
Cobb Douglas. Production Function	Long run production function
Isoquant	Input combinations giving same output

Question 25.
Explain any two reasons why GDP cannot be considered as an index of the welfare of the people
of a country.
Answer:
GDP is the money value of final goods and services produced by a nation during a financial year. Nation with high GDP is considered as the best, so we can say that GDP is considered as an index of development but it has certain drawbacks that’s why we cannot consider GDP as a best index of the welfare of the people.

Reasons:
1. Inequality in the distribution of income.
Along with increase in GDP inequalities in income may occur. Even if the majority does not experience any increse in income, the GDP will increase if the income of a minority increases. Here welfare diminishes even when GDP increases.

2. GDP and harmful goods.
While calculating GDP all goods and service are considered. Whether these goods and services are useful or harmful to the people is not taken into consideration. An increase in the production of such harmful products will result in an increase in GDP. But overconsumption of such harmful products result in loss of welfare, eg:-Alcohol, Tubacoo products.

Part – IV

A. Answer any 3 questions from 26 to 29. Each caries6 scores. (3 × 6 = 18)

Question 26.
The diagram shows the relationship between Aver age Cost (AC) and Marginal Cost (MC) curve:

i) Write short notes on:
a) Average Cost (AC)
b) Marginal Cost (MC)
ii) With the help of above diagram identify any two relationships between Average Cost (AC) and Marginal Cost (MC).
Answer:
(i) a) AC (Average cost) Cost per unit of out put is known as average cost
AC = \(\frac{\mathrm{TC}}{\mathrm{Q}}\)

b) MC (Marginal cost)
It is the change in total cost per unit change in output
MC = \(\frac{\Delta \mathrm{TC}}{\Delta \mathrm{Q}}\)

(ii) a) In the initial stage both MC and AC are diminishing (decreasng)
b) MC equals AC at the minimum point of AC.

Question 27.
With the help of diagrams anale ‘Prive Ceiling’ and ‘Price floor’.
Answer:
‘Price ceiling’
It is the upper limit on the price of goods and services imposed by the government to protect the interest of consumers (ie. protection from high price)

Here in the diagram P₀ is equilibrium price which is higher, P_c is the ceiling price fixed by government which is lower than P₀.

‘Price floor’
It is otherwise known as support price, it is the minimum price fixed by government to protect the interest of the producers.

Here in the diagram P₀ is equilibnum price which is very low. To ensure fair pnœ government fixes floor price above the equilibnum price (P₀). It is the floor price.

Question 28.
Prepare notes on :
a) Revenue receipts
b) Revenue expenditure
Answer:
a) Revenue receipts:
The receipts which do not create liabilities or reduce government assets are known as revenue receipts.
Revenue receipts can be divided in to tax revenue and non tax revenue.

Tax revenue:
Revenue earned from taxes. Taxes are of two types.
1. Direct taxes
2. Indirect taxes

Non tax revenue:
Revenue earned by government from other than taxes, they are

1. Fees
2. Fines and penalties
3. Special assessments
4. Income from public property
5. Grants in aid
6. Escheats
7. Dividends and profits.
8. Interest and loans.
9. Printing of currency.

b) Revenue expenditure
Expenditure that does not create assets or reduce liabilities is called revenue expenditure, eg: interest payments, salaries and pension grants in aid.
The revenue expenditure is classified into two.

1. Plan revenue expenditure
2. Non plan revenue expenditure.

Question 29.
Explain the objectives of government budget.
Answer:
Budget is a nation’s yearlong financial report explaining itemwise calculations of expected revenue
and expenditure. Budget has some important objectives they are given below.

1. Attain economic growth. A nation’s economic growth is based on the rate of investments and savings. Budget focuses on preparing adequate resources for investing in the public sector and rising the overall rate of investments and savings.

2. To attain economic stability Policies such as deficit budget during deflation and surplus budget during inflation will help in balancing the prices in the economy.

3. Reduce inequalities in income and wealth. Through progressive taxation and productive public expenditure government tries to reduce inequalities in income and wealth.

4. Reallocation of resources. Through budget government tries to manage resources to locate one place to other ie. from surplus area to deficit area.

5. To reduce regional disparities. Through budget government tries to bring development in backward areas through this government aims reduce regional disparities.

B. Answer any 2 questions from 30 to 32. Each carries 6 scores. (2 × 6 = 12)

Question 30.
i) What do you mean by Price Elasticity of Demand(PED)?
ii) Graphically explain the perfectly elastic and perfectly inelastic demand curves.
Answer:
i) Price elasticity of demand It is the degree of responsiveness of quantity demanded of a commodity with respect to change in tis price. It is obtained by dividing the percentage change in quantity demanded by the percentage change in price. On the basis of degree of change in the quantity demand, elasticity can be classified into a five types, they are

1. Elastic demand
2. Unitary elastic demand
3. Inelastic demand
4. Perfectly elastic demand
5. Perfectly inelastic demand.

ii) Perfectly elastic demand

When a small change in price leads to infinite change in demand, this type of demand elasticity is known as perfectly elastic demand. Here the value of elasticity is infinite; demand curve would be parallel to x axis.

Perfectly inelastic demand

Here in this case price has no effect on demand, so the value of elasticity is zero. In this case demand curve is a vertical straight line parallel to y axis.

Question 31.
RBI publishes figures for four alternative measures of money supply.
i) Elucidate four measures of Money Supply in India.
ii) Identify Narrow Money and Broad Money.
Answer:
a) Supply of money in our nation is entirely controlled by RBI. RBI publishes four different measures of money supply under the heads M₁ M₂, M₃ and M₃

M₁ = CU + OD ie currency notes and coins held by the public + net demand deposits of the people held by commercial banks.

M₂ = M₁ + saving deposits with post office – savings banks.

M₃ = M₁ + Net time deposits of commercial banks

M₄ = MM₃ + Total post office deposits except national savings certificates

b) Here M₁and M₂ are known as narrow money
M₃ & M₄ are known as broad money has thethighest liquidity M4 has least liquidity.

Question 32.
i) Distinguish between open economy and closed economy.
ii) Product market is one of the linkages through which open economies establish economic relation with rest of the World. Explain the other two linkages.
Answer:
(i) Open economy
An economy which has economic relations with other countries through exchanging goods and services financial assets etc. can be termed as an open economy. This type of economy will function freely without much regulations and control.

Closed economy
An economy without economic relations with other countries through exchanging goods and services financial assets etc. can be termed as a closed economy.

(ii) This openness can be attained through different types of linkages (ie. – connections) They are:

1. Product market linkage
2. Financial market linkage
3. Factor market linkage

Financial market linkage:
Through this investors can invest in domestic economy and foreign economy; this will result in creation of a friendly environment and co-operation at global level.

Factor market linkage:
This means factors of production are transferable between nations. This will improve the relationship between different nations in the world.

Part – V

Answer any 2 questions from 33 to 35. Each carries 8 scores. (2 × 8 = 16)

Question 33.
i) Mention the properties of Indifference curves.
ii) Diagrammatically explain the optimal choice of consumer.
Answer:
i) Indifference curve:
It is the locus of points of combinations of two goods which give same level of satisfaction to the consumer.

Features of indifference curve.

1. Indifference curve slopes downwards from left to right.
2. Indifference curve is convex to origin.
3. Higher indifference curves represent higher levels of satisfaction.
4. Indifference curves do not intersect each other

ii) Optimal choice of the consumer
A consumer prefers a situation where his satisfaction is maximum. According to indifference curve approach, a consumer attains equilibrium at the point where budget line is tangent to highest possible indifference curve.

Here in the diagram point ‘E’ shows optimal choice of the consumer.

Question 34.
With the help of diagrams analyse the profit maximisation conditions of a firm under perfectcomPetition in short run.
Answer:
Perfect competition. It is a market situation where large number of buyers and sellers operate freely perfect competition is anextreme form of market which is rarely existing in the real world.

Features of perfect competition.

1. Large number of buyers and sellers
2. Homogenous products
3. Perfect mobility of factors of production
4. Perfect know’edge of market condition
5. Freedom of entry and exit
6. Absence of transport cost
7. Uniform price
8. Absence of selling cost
9. Firms are price takers.

Short run equilibrium
Conditions of equilibrium.
1. P = MC
2. MC curve should cut MR curve from below.
3. Price should be greater than or equal to AVC
Diagrammatic representation of equilibrium

The above given diagram represents short run equilibrium under perfect competition.
Here TR = OPAQ
TC = OEBQ
Profit = TR – TC
ie. OPAQ – OEBQ = EPAB

Question 35.
What do you mean by GDP? Explain any two methods of calculating GDP.
Answer:
a) GDP
Money value of all final goods and services produced by a nation during a financial year is known as national income (GDP). Computation of national income is an important activity. To compute national income we can use three different methods, they are
1. Product method or value added method
2. Expenditure method or out lay method
3. Income-method

b) Product method or value added method
Here in this method national income is calculated by adding all the final goods and services produced by all production units in a nation during a financial year. But it is not so easy because the final output produced by a firm is used as input in other firms this problem Is termed as double counting. To avoid this problem value added method is used to calculate final value of output. As per value added method, GDP is the sum of gross value added by all the producers in the domestic territory.

2. Income method
Under his method GDP is calculated by adding together all the factor income received by the owners of factors of production, such as land, labour, capital and entrepreneurship. Therefore as per income method the GDP of an economy is the sum total of wages, rent, interest and grossprofit. ie.GDP = W +R + l + P

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf Board Model Paper 2023 to improve time management during exams.

Kerala Plus Two Economics Board Model Paper 2023 with Answers

Time : 2 1/2 Hours
Total Scores : 80 scores

Answer any 8 questions from 1 to 10. Each carries 1 score:

Question 1.
The goods and services which are purchased and used by its ultimate consumers are known as:
(a) Intermediate goods
(b) Consumer goods
(c) Raw materials
(d) Investment goods
Answer:
(b) Consumer goods

Question 2.
“A firm cannot vary all its puts in their production process”. If so which of the following is associated with the above statement?
(a) Increasing Returns to scale
(b) Constant Returns to scale
(c) Short-run Production function
(d) Long-run Production function
Answer:
(c) Short-run Production function

Question 3.
The inputs used in the production process is known as:
(a) Production Function
(b) Factors of Production
(c) Cost Function
(d) Total Product
Answer:
(b) Factors of Production

Question 4.
The demand curve of a firm under perfect competition is:
(a) Perfectly elastic
(b) Download slopping curve
(c) Upward sloping curve passing through the origin
(d) Perfectly inelastic
Answer:
(a) Perfectly elastic

Question 5.
Which of the following is associated with the problem of ‘Choice’?
(a) Abundance of resources
(b) Efficiency in technology
(c) Increase in productivity
(d) Scarcity of resou rces
Answer:
(d) Scarcity of resou rces

Question 6.
In the equation, P₁ x₁ + P₂ x₂ = M slope of the budgent line is :
(a) -P₁/P₂
(b) P₁ x₁
(c) M/P₂
(d) M/P₁
Answer:
(a) -P₁/P₂

Question 7.
The apex monetary institution in India is :
(a) State Bank of India
(b) NABARD
(c) Reserve Bank of India
(d) Government
Answer:
(c) Reserve Bank of India

Question 8.
Annual functional statement of the government is known as:
(a) Budget
(b) Financial report
(c) Revenue Report
(d) Capital account report
Answer:
(a) Budget

Question 9.
Which of the following shows consumption function?
(a) Relation between Concumption and Savings
(b) Relation between Consumption and Income
(c) Relation between Consumption and Investment
(d) Relation betweerj Savings and Income
Answer:
(b) Relation between Consumption and Income

Question 10.
The market in which national currencies are traded for one another?
(a) Share Market
(b) Good Market
(c) Factor Market
(d) Foreign Exchange Market
Answer:
(d) Foreign Exchange Market

Answer any 4 questions from 11 to 15. Each carries 2 scroes.

Question 11.
List any two sources of capital receipts of government budget.
Answer:
Borrowings and recovery of loans and advances

Question 12.
Write any two methods of cashless transaction (other than currency notes and coins) in an economy.
Answer:
Online transfers like NEFT or RTGs, transactions through UPI apps.

Question 13.
Write the economic terms for the following :
(a) The Price at which market demand is equal to market supply.
(b) The situation in which if at a price, market supply is greater than market demand.
Answer:
(a) Equilibrium price
(b) Excess supply

Question 14.
List any two features of Total Revenue Curve of a firm under perfect competition.
Answer:
a) TR is zero when output equals zero.
(b) As output increases TR also increases, TR is upward sloping curve.

Question 15.
Find out the vertifcal intercept and horizontal intercept from the given budget line equation :
5x₁ + 2x₂ = 20
Answer:
Horizontal Intercept
\(5 x_1=20 \quad x_1=\frac{M}{P_1}=x_1=\frac{20}{5}=4\)
Vertica Intercept
2x₂ = 20
x₂ = \(\frac{M}{P_2}=\frac{20}{2}\) = 10

Answer any 4 questions from 16 to 20. Each carries 3 scores.

Question 16.
List any three properties of indifference curve.
Answer:
(1) Indifference curves slope downward from left to right.
(2) Indifference curves are convex to origin.
(3) Indifference curves do not intercept each other.

Question 17.
Explain the three laws of Returns of Scale.
Answer:
Return to scale refers to long run production function. According to the changes made in inputs, output level changes in three different ways as follows;
(1) Increasing Retruns to Scale (IRS)
(2) Constant Returns to Scale (CRS)
(3) Diminishing Returns to Scale (DRS)

Question 18.
Explain how do the following situations affect the supply curve of a firm by using diagram :
(a) Price of inputs used in the production increases.
(b) Technology using is advanced.
Answer:
(a) When the price of input increases

From the above diagram it is clear that when there is an increase in input price, the supply curve of the firm shifts towards left, indicating decrease in supply, (ie., change from Sto S₁)

(b)

Supply curve of the firm shifts towards right when there is an advancement in technology. The change is represented in diagram, S is original supply curve, ie. supply curve before technology upgradation, S., is new supply curve due to updation of technology. Bank deposits, population of a country, capital, are stock variables.

Question 19.
Classify the following variables into Stock and Flow: Bank Deposit, Population of a country, Capital, Investment, Birthrate, National Income
Answer:
National Income, Birth rate, Investment are flow variables.

Question 20.
Write the three ways in which an open economy can establish economic linkages with other countries.
Answer:
(1) Product Market linkage
(2) Financial market linkage
(3) Factor Market linkage

Answer any 4 questions from 21 to 25. Each carries 4 score. (4 × 4 = 16)

Question 21.
Explain the flexible exchange rate system using a diagram.
Answer:
Under flexjble exchange rate system exchange rate is determined according to changes in demand and supply of foreign exchange.

The above given diagram explains how exchange rate is determined under flexible exchange rate system. D is initial demand curve where ‘e’ is exchange rate when demand increased from D to Di as a result exchange rate changed from ‘e’ to e-i.

Question 22.
Prepare a short note on the emergence of macro-economics.
Answer:
Macro economics has emerged as a new branch of economics after global economic crisis of 1928. It was the work done by J.M. Keynes acted as a catalyst for the growth of Macro economics. J.M. Keynes criticised classical economists for their unrealistic assumptions related to working of economic factors. The views of classical economists were wrong and misleading and they failed to solve economic crisis. During this time Keynes published his famous book “General Theory of Employment Interest and Money” in 1936, which acted as a guide to solve-the global economic crisis. Later the. views of Keynes popularly known as Macro economics.

Question 23.
Graphically illustrate the circular flow of income in a two sector economy.
Answer:

• Here households provide factors of production to the firms for this firms provide factor payment.
• Firms provide goods and services required to the household and households give payment as price.

Question 24.
(a) Distinguish between Micro-economics and Macro-economics.
(b) Classify the following into micro-economics variable and macro-economic variable. Resources of an economy, output of a firm, unemployment rate, individual investment.
Answer:
The study of individual units of the economy is known as Micro economics
(a) The study of economy as a whole is known as Macro economics.
(b) Micro economics variable individual investment.
(c) Macro economic variable : Resources of an economy, unemployment rate.

Question 25.
Analyse Price Ceiling with the help of diagram.
Answer:
Government Intervention in market against increasing price levels of essential commodities by fixing a lower price than equilibrium price is known as price ceiling.

‘E’ is the equilibrium in the above given diagram where ‘ep’ is equilibrium price. When government felt ‘ep’ is very high and unaffordable for the poor, fixed a new price ‘Cp’ which is ceiling price and lower than ‘ep’. Through this government protects common people from the adversities of price increase.

Answer any 4 questions from 26 to 30. Each carries 5 scores. (4 x 5 = 20)

Question 26.
Analyse the optimal choice of the consumer by drawing Indifference curve and Budget line.
Answer:
Optimal choice of consumer or consumer equilibrium can be defined as the position of maximum satisfaction attained by a consumer. According to indifference curve approach a consumer attains equilibrium at the point where budget line is tangent to indifference curve. It can be expressed with the help of a diagram.

The above given-diagram shows consumer equilibrium. HereAB is budget line of consumer and IC₁, IC₂ and Ic₃ are different indifference curves. Point ‘E’ is the region where highest possible indifference curve (Ic₂) tangents with budget line so that particular point (E) is called consumer equilibrium.

Question 27.
(a) At a price Rs. 6 the consumer demands 30 units of a good. Suppose the price of the good increases to Rs.8 and as a result, the demand for the good falls to 24 units. Calculate Price elasticity of demand.
(b) Some points are marked in the following linear demand cunie. Mark the correct value of price
elasticity of demand corresponding to each point.
Answer:
Degree of responsiveness of quantity demanded of a commodity towards changes in price of that commodity is knowp as price elasticity of demand
Price elasticity of demand = \(\frac{\Delta Q}{\Delta P} \times \frac{P}{Q}\)

where ∆Q Change in quantity demanded
∆P Change in price
Q Original quantity demanded (previous demand)
P Original price (previous price)
P = 6, Q = 30
New price = 8
New quantity demanded = 24
∆P = 8 – 6 = 2
∆Q = 30 – 24 = 6
∴ \(\frac{\Delta Q}{\Delta P} \times \frac{P}{Q}=\frac{6}{2} \times \frac{6}{30}\)
= \(\frac{36}{60}\) = 0.6

(b) 1. Elasticity at A = ∞
2. Elasticity at B = 1
3. Elasticity at C = less than I
4. Elasticity at D = O (Zero)

Question 28.
Explain the profit maximising level of output of a firm under perfect competition in the short-run (Hint: 3 conditions), using diagram.
Answer:
Perfect competition is a market situation where large number of buyers and sellers dealing with
homogenous product.

Features of perfect competition

1. Large number of buyers and sellers.
2.  Homogenous product
3. Perfect information
4. Uniform price
5.  Freedom of entry and exit

Profit maximisation condition of a firm in short run under perfect competition.
Three Conditions
1. P = Me
2. MC should cut MR from below
3. Price should be greater than or equal to AVC Here the above mentioned three conditions follows ie. (1) P = MC
(2) MC cuts MR from below
(3) P > AVC

Question 29.
(a) Write the components of aggregate demand in a two sector economy.
(b) Explain the effect of multiplier mechanism on equilibrium income withe the help of a diagram.
Answer:
A two sector economy consists of households sector and Industries.
(a) Aggregate demand is the total demand of an economy, it is denoted as AD. It has two components they are consumption demand (c) and Investment demand (I)
so AD = C +1
(b) Income multiplier is also known as output multiplier or autonomous expenditure multiplier. It is the ratio of change in income to change in investment.

From the diagram it is clear that when a small increase in investment. ie.,(AI) brings a large increase in Income from Y₁ to Y₂.

Question 30.
(a) Write any two features of Public Goods.
Answer:
(a) Features of public goods

1. Non rival in nature
2. Non exclusion

(b) Objectives of government budget

1. Reduction of inequality
2. To attain economic growth
3. To attain economic development
4. Generation of more employment opportunities.

Answer any 2 questions from 31 to 33. Each carries 8 scores. (2 × 8 = 16)

Question 31.
(a) List any four functions of Central Bank.
(b) Analyse the functioning of any two quantitative credit control instruments of Central Bank.
Answer:
Functions of central bank
(a) 1. Issue of currency
2. Bankers bank
3. Banker to the government
4. Controller of credit /money supply

(b) Central bank controlls the supply of money through two different methods they are
1. quantitative credit controll measures
2. qualitative credit controll measures

Two quantitative credit controll measures are:
1, Bank rate
2. Reserve ratios

Question 32.
(a) A Garment making unit produces 200 shirts and sells it at a price of Rs. 500 each. Raw materials worth Rs. 20,000 is used and depreciation charges is Rs. 5,000 during the production period. Calculate value added and net value added of the unit.
(b) Explain any two methods of calculating GDP of an economy.
Answer:
Total revenue of the unit =

Cost of raw material = 20000
Value added = I ,00,000 – 20,000 = 80000
Net value added =
Value added – depreciation charges
= 80,000 – 5000
= 75,000

(b) GDP of an economy can be. calculated through three different ways, they are
1. Product method
2. Income method
3. Expenditure method

1. Product method: Here GDP is calculated by adding value of all final goods and services produced in a nation during a financial year. Value of output = Market price x Output This method is otherwise known as value added method.
2. Income method: Here GDP is calculated by adding together all the factor incomes received by the owners of factors of production in the form of rent, wage, interest and profit. ie. W +R + I +P
3. ExpendIture method:.
   As per expenditure method GDP is calculated by adding all expenditures made within the country during the accounting year, that means it in cludes both public expenditure and private ex poenditure.

Question 33.
(a) Given below is the cost schedule of a firm. Total Fixed Cost is Rs.100. Calculate TVC, AVC, AFC, AC and MC and complete the chart:
Answer:
(a)

Output	TC	TFC	TVC	AVC	AFC	AC	MC
0	100	100	0	–	–	–	–
1	120	100	20	20	100	120	20
2	140	100	40	20	50	70	20
3	150	100	50	16.66	33.33	50	10
4	155	100	55	13.75	25	38.75	5
5	170	100	70	14	20	34	15
6	200	100	100	16.66	16.66	33.33	30

TVC = TC – TFC
AVC = \(\frac{\mathrm{TVC}}{\mathrm{Q}}\)
AFC = \(\frac{\mathrm{TFC}}{\mathrm{Q}}\)
AC = \(\frac{\mathrm{TC}}{\mathrm{Q}}\)
MC = \(\frac{\Delta \mathrm{TC}}{\Delta \mathrm{Q}}\)

(b) Draw Average Fixed Cost (AFC) curve and comment on its shape.
Answer:
(b) Average fixed cost curve

TFC is constant at all levels of output. So when output increases AFC will decrease continously. The shape of AFC is rectangular hyperbola.

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf March 2020 to improve time management during exams.

Kerala Plus Two Economics Previous Year Question Paper March 2020

Answer any 10 questions from 1 to 12. Each carries 1 score. (10 × 1 = 10)

Question 1.
The famous book “General Theory of Employment, Interest and Money” was written by
a) Adam Smith
b) J.M. Keynes
c) Paul A. Samuelson
d) David Ricardo
Answer:
b) J.M. Keynes

Question 2.
In a Centrally Planned Economy all important economic activities are organised by
a) Government
b) Market
c) Both government and market
d) None of these
Answer:
a) Government

Question 3.
Which of the following causes rightward shift of the supply curve?
a) Rise in input price
b) Technological progress
c) Imposition of unit tax
d) None of these
Answer:
b) Technological progress

Question 4.
Total revenue curve under perfect competition is
a) Downward sloping from left to right
b) Upward rising from the point of origin
c) Parallel towards X axis
d) Parallel towards Y axis
Answer:
b) Upward rising from the point of origin

Question 5.
Financial year in India
a) 1 January to 31 December
b) 1 July to 30 June
c) 1 April to 31 March
d) 1 October to 30 September
Answer:
c) 1 April to 31 March

Question 6.
Which of the following is not a feature of capitalist economy?
a) Private ownership of the means of production
b) Profit motive
c) Planning mechanism
d) Price mechanism
Answer:
c) Planning mechanism

Question 7.
Which of the following represents budget line equation?
a) P₁ X₁ + P₂ X₂ = M
b) P₁ X₁ + P₂ X₂ < M
c) P₁ X₁ + P₂ X₂ > M
d) None of these
Answer:
a) P₁ X₁ + P₂ X₂ = M

Question 8.
Freeentryand exitof firms under perfect competition ensures
a) Super-normal profit
b) Loss
c) Normal profit
d) None of these
Answer:
c) Normal profit

Question 9.
Under monoploy market situation if marginal revenue is positive.
a) e_D = 1
b) e_D > 1
c) e_D < 1
d) e_D = 0
Answer:
b) e_D > 1

Question 10.
In the equation C = C + cY, C represents
a) Autonomous Consumption
b) Marginal Propensity to Consume
c) Marginal Propensity to Save
d) Consumption Function
Answer:
a) Autonomous Consumption

Question 11.
Which of the’following does not include in Revenue Receipt?
a) Tax Revenue
b) Recovery of Loans
c) Grants in aid from foreign countries
d) Dividends on investment made by Government
Answer:
b) Recovery of Loans

Question 12.
Which of the following is not included in the Current Account of Balance of Payments?
a) Trade in goods
b) Trade in services
c) Investments
d) Transfer payments
Answer:
c) Investments

Answer any 5 questions from 13 to 18. Each carries 1 score. (5 × 2 = 10)

Question 13.
Complete the schedule given below:

Labour	0	1	2	3	4	5	6
Total Product	0	3	10	18	24	29	33
Marginal Product
Average Product

Answer:

Labour	0	1	2	3	4	5	6
Total Product	0	3	10	18	24	29	33
Marginal Product	–	3	7	8	6	5	4
Average Product	–	3	5	6	6	5.8	5.6

Question 14.
Classify the following into microeconomics and macroeconomics: Economic Growth, Individual Demand, General Price Level, profit of Firm.
Answer:

Micro Economics	Macro Economics
Individual demand	Economic growth
Profit of a firm	General price level

Question 15.
Distinguish between marginal propensity to consume and marginal propensity to save.
Answer:
A certain percentage of increase in income will go as consumMion. This protion is known as MPC. The
rest is known as MPS.
MPC = \(\frac{\Delta C}{\Delta Y}\)
MPC = \(\frac{\Delta S}{\Delta Y}\)

The ratio between the change in consumption to change in income is known as MPC. The proportion between change in savings to change in income is known as MPS.

Question 16.
Define Oligopoly market. List any two ways by which firms in Oligopoly market behave.
Answer:
Oligopoly is known as competition among firms Firms act like these two features in the market which are:

1. I nterdependence of firms
2. Products may be homogeneous or differentiated.

Question 17.
Distinguish between normal profit and super- normal profit.
Answer:
When a firm’s total revenue are equal to its total costs in a market, this situation is known as normal profit. The profit earned by the firm over and above the normal profit is known as super normal profit.

Question 18.
Distinguish between balance of payments and balance of trade.
Answer:
Balance of payment is the complete record of the financial transaction made between a country and the rest of the world. Balance of trade is the difference between the visible export and visible import of a country with the rest of the world.

Answer any 6 questions from 19 to 25. Each carries 3 score. (6 × 3 = 18)

Question 19.
Draw the outline of a production possibility frontier and mark the following situations:
i) Fuller utilization of resources
ii) Under utilization of resources
Answer:

Any point lying on the production possibility curve shows the efficiently utilised resources point lyinginside the PPC implies under utilization of resources.

Question 20.
Identify any three features of indifference curve.
Answer:
Three features of indifference curve are given below.

1. Indifference carves are convex to origin.
2. Higher indifference curves show higher levels of satisfaction.
3. It do not interest each other.

Question 21.
Expain the three laws of returns to scale.
Answer:
There are three laws of returns to scale which are given below.

1. Increasing returns to a scale (IRS)
   If a proportionate increase in all the inputs leads to more than proportionate change in output. It is the stage of IRS.
2. Constant returns to a scales (CRS)
   If proportionate increase in inputs leads to proportionate increase in output, it is called constant returns to scale.
3. Decreasing Return to Scale
   If a proportionate change in inputs leads to less than proportionate change in output is called diminishing returns to a scale (DRS). This laws of returns can be expressed in figure.

Question 22.
Recently the government of India have decided to restrict the export of onion towards foreign countries. Diagrammatically illustrate the immediate effect of this decision on the equilibrium priceand quantity of onion in India.
Answer:

The immediate effect of this decision leads to decrease in equalibrium price decrease and increase in equilibrium quantity increases in the market.

Question 23.
Compare monopoly and monopolistic competition based on the features given below:

Features	Monopoly	Monopolistic ComDetition
Number of firms
Entry of firms
Nature Profit in the long-run

Answer:

Features	Monopoly	Monopolistic ComDetition
Number of firms	Single	Fairly large
Entry of firms	No	Freedom of entry
Nature Profit in the long-run	super Normal	Normal

Question 24.
Distinguish between Public goods and private good Write an example of each.
Answer:
Public goods are provided by the goernment for the Common use. They are non-rivalary and non-excludable. eg: Road, National defence Private goods are rival and excludable. For purchasing private goods, we have to pay price.
eg: car, cloths and food items etc.

Question 25.
Explain the concept of ‘Paradox of Thrift’.
Answer:
If all the people of Jhe economy increases the proportion of income they save, the total value of saving in the economy will not increase, it either decrease of remain unchanged.

Answer any 4 questions from 26 to 30. Each carries 4 score. (4 × 4 = 16)

Question 26.
a) Distinguish between concept Nominal GDP and Real GDP. (1)
b) Which one is considered as a better concept for comparing the GDP among countries? (1)
c) Name the index representing the raito of Nominal GDPto Ral GDP. (1)
Answer:
a) Ifthe money value of final goods and services are calculated on the basis of current year price it is known as Nominal GDP.
If the money value of final goods and services are calculated on the basis of base year price. It is known as Real GDP.

b) Real GDP

c) GDP Deflator

Question 27.
Explain the determination of equilibrium national output and aggregate demand in a two sector economy with the help of a diagram.
Answer:

Question 28.
The diagram showing short – run Average Cost (SAC) Curve is given below:
a) I ncorporate Average Variable Cost (AVC) Curve and Short-run Marginal Cost (SMC) Curve in the diagram. (2)
b) Identify the relationship between Short -run Marginal Cost (SMC) and Short-run Average cost (SAC). (2)

Answer:
(a)

b) I) When SAC s deaeasng SMC curve will be be4ow Ue SAC.

Question 29.
Market determined price of paddy in Kerala is Rs. 2. per Kilogram. But government intervenes in the market and sets Rs. 26 per Kilogram as its minimum price with a veiw to protect the interests of paddy farmers.
a) By what name this policy of government is known? (1)
b) Analyse the consequences of this policy with the help of a diagram. (3)
Answer:
a) Price Floor/Minimum Suppport Price b)
b)

The government will intervene in the market and fix P, as floor price. This floor price will be higher than market determined price. The fixation of floor price will lead to excess supply. The excess supply situation is countered by the government through procurement.

Question 30.
Diagrammatically analyse the short -run equilibrium of a monopoly firm by using total revenue curve and total cost curve.
Answer:

Under monopoly a firm will produce that level of output where profit is maximised. This is the output level that satisfied the following conditions.

1. TR should be greater than TC
2. The vertical distance between TR and TC should be minimum.

Answer any 2 questions from 31 to 33. Each carries 5 scores (2 × 5 = 10)

Question 31.
a) Define foreign exchange market. Identify any two major participants in foreign exchange market.(2)
b) Distinguish between flexible exchange rate and fixed exchange rate. (2)
c) List any two merits of flexible exchange rate. (1)
Answer:
a) The market in which national currenciess arte traded for one another is known as foreign exchange market. Commercial banks and foreign exchange brokers are two majour participants in foreign exchange market.

b) Flexible exchange rate. It is also known as floating exchange rate determination. Here the exchange rate is determined by the forces of demand and supply of foreign exchange. The central bank has no role in the determination of exchange rate and no transaction in the official reserve account.

Fixed exchange rate
Under this system the exchange rate will be determined by central bank. If there occurs a change in exchange rate the central bank will intervene in the market to fix it to the already determined exchanged rate.

In a country where there is fixed exchange rate I the change in exchange rate occurs due to delibrate action by the government or by the central bank.

c) Credibility and automatic stabilisation are two merits of flexible exchange rate.

Question 32.
a) Identify any four features of a perfectly competitive market.
b) Diagrammatically explain the profit maximization of a firm in the short- run under perfect competition.
Answer:

1. Large number of buyers and sellers.
2. Homogeneous product
3. Freedom of entry and exit
4. Perfect knowledge’about the market.

b) Under perfect competition, there are 3 conditions of profit maximisations.
1) Price most be equal to MC or (MR = MC)

2) MC must be non decreasing at equilibrium.

3) Price must be great than or equal toAVC (PAVC)

Question 33.
a) Identify the formulae for calculating revenue deficit, fiscal deficit and primary deficit. (3)
b) Suggest any two measures for reducing fiscal deficit. (2)
Answer:
a) Revenue Deficit = Revenue expenditure – Revenue Receipts
Fiscal Deficit = Total expenditure – (Revenue receipts. Non debt creating captial receipts)
Primary deficit = Fiscal deficit – net interest Liabilities.

b) i) Reduces government expenditure.
ii) Increase public revenue.

Answer any 2 questions from 34 to 36. Each carries 8 scores. (2 × 8 = 16)

Question 34.
a) Define price elasticity of demand. Analyse any two factor determining price elasticity of demand for a commodity. (3)
Answer:
The degree of responsiveness of demand due to a change in price is known the price elasticity of  demand (e_D). Nature of the goods and availability of Close substitutes are the two factors determining price elasticity of demand for a commodity.

b) Draw three constant elasticity demand curves and mark the value of price elastity of demand on each of them. (3)
Answer:
Three constant elasticity demand curves are given below.
i) Perfectly inelastic demand curve

Even if the price increase or decrease demand will be same. Then demand is said to be perfect’y inelastic.

ii) Perfectty elastic demand (e_D = ∝)
If a very small change in price leads to infinite change in demand it is the case of perfectly elastic demand.

(iii) Unity elastic demand

c) When the price of a commodity falls from Rs. 6 to Rs. 4 per unit, its quantity demanded rises from 40 units to 50 units. Calculate the price elasticity of demand. (2)
Answer:
price elasticity of demand: = \(\frac{p_o}{q o} x \frac{\Delta q}{\Delta p}\)
= \(\frac{6}{40} \times \frac{10}{2}=\frac{60}{80}\) = 0.75

Question 35.
a) Explain the product method and expenditure method of calculating gross domestic product.(2)
b) Discuss any two limitations of using gross domestic product as an index of welfare of a country. (2)
Answer:
a) Product Method Product method is also known as the value added method and outpad’method. GDP according to product method is the sum of the gross value added by the entire production units in the economy. If there are N firms in an economy, the GDP = sum total of the gross value added of all the firms in the economy
GDP = GVA₁ + GVA₂ + ……… + GVAN
there fore GDP = \(\sum_{i=1}^N \mathrm{GVA}_i\)
Here GDP is calculated on the basis of market price.
GDP_MP = \(\sum_{i=1}^N \mathrm{GVA}_i\)

Expenditure method:
This method is an alternative way to calculate the GDP and it looks at the demand side of the production. The expenditure method estimates national income by measuring final expenditure on gross domestic production. Consider firm T in the economy firm T can make the final expenditure on final goods on the following accounts.

1. The final consumption expenditure on the goods and service produced by the firm (c).
2. The final investment expenditure, incurred by other firms to purchase capital goods produced by firm ‘l’ (l)
3. The expenditure that the government makes on the final goods and services produced by firm ‘i’ (G_i)
4. The export revenues that firm ‘i’ earns by selling its goods and services abroad (X_i)
   Therefore GDP_MP = C + I + G + (X – M)

b) There are some limitations of GDP as an index of welfare of a nation which are given below.

1. GDP.and externalities The measure of externalities is not included in GDP. So GDP is not a good measure of economic welfare.
2. GDP and non-monetary exchanges. Subsistance production of an economy is not included in the calculation of GDP so GDP does not reveal the actual income in an economy.
3. Distribution of GDP is not uniform As GDP increases welfare may not increase. So in this situation the increase in GDP is not a good indicator of economic welfare.

Question 36.
People desire to hold money balance mainly for two motives. Explain these two motives.
Answer:
People like to hold money in the form of cash, people desire to hold money balance mainly for two motives which are given below.
i) Transactions motive: It is defined as the desire of people hold cash in order to make transaction. The number of times a unit of money changes hands during a period is called velocity of circulation of money. As the volume of GDP increases transactions demand for money will also increase.
\($M_T^d=K P Y$\)
PY = NominalGDP
P = General price level
Y = Real GDP
The transactions demand for money has a positive relationship with GDP.

ii) Speculative motive
In order to make profits from the p urchase and sale of bonds and securities individuals will hold
cash. This is known as speculative motive. The relationship between interest rate and bond price
is negative. When the market rate of interest is high the bond price .will be less. There is a negative relationship between the market rate of interest and speculative demand for money. The speculative demand for money can be written as follows.

The speculative demand curve for money can be drown as follows.

When the market rate of interest reaches or minimum the speculative demand curve will be parallel to ‘x’ axis. This situation is known as liquidity trap. The total demand for money includes precautionary motive, transactions motive and speculative motive. Among these the most important are transactions demand and speculative demand for money.

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf March 2021 to improve time management during exams.

Kerala Plus Two Economics Previous Year Question Paper March 2021

Answer question from 1 to 41 up to the maximum of 80 scores. (12 × 1 = 12)

Question 1.
a. In a centrally planned economy, all the important economic activities are planned by:
i) The market
ii) The government
iii) Both market and government
iv) Corporate sector
Answer:
ii) The government

b. An example of micro variable is:
i) National income
ii) Gross Domestic Product
iii) Net Domestic Product
iv) Individual income
Answer:
iv) Individual income

c. The founding father of Modern Economics is:
i) J.M. Keynes
ii) Adam Smith
iii) Alfred Marshall
iv) Amartya Sen
Answer:
ii) Adam Smith

d. The book ‘General Theory of Employment, Interest and Money was published in the year:
i) 1929
ii) 1936
iii) 1775
v) 1946
Answer:
ii) 1936

e. Other things remain the same, when price of a commodity decreases, ite demand
i) Falls
ii) Rises
iii) Never changes Constant
Answer:
ii) Rises

f. The firm’s revenue under perfect competiion is:
i) MR > AR
ii) AR > MR
iii) MR = AR
iv) MR > Price
Answer:
iii) MR = AR

g. National income in India is:
i) GDP_MP
ii) GNP_FC
iii) NDP_FC
iv) NNP_FC
Answer:
iv) NNP_FC

h. In India, the custodian of foreign exchange reserve is :
i) State Bank of India
ii) Reserve Bank of India
iii) Canara Bank
iv) Indian Bank
Answer:
ii)  Reserve Bank of India

i. The situation where, market demand equals market supply:
i) Excess supply
ii) Excess demand
iii) Equilibrium
iv) Deficient demand
Answer:
iii) Equilibrium

j. Shape of the demand curve under monopoly market:
i) Upward sloping
ii) Downward sloping
iii) Horizontal straight line
iv) Vertical straight line
Answer:
ii) Downward sloping

k. Budget in which Government Expenditure is greater than Government Revenue:
i) Surplus budget
ii) Deficit budget
iii) Balanced budget
iv) Current account deficit
Answer:
ii) Deficit budget

l. In a two sector model AD = \(\overline{\mathrm{C}}+\overline{\mathrm{I}}\)
Here autonomous consumption is indicated by:
i) c
ii) \(\overline{\mathrm{C}}\)
iii) \(\text { T }\)
iv) Y
Answer:
ii) \(\overline{\mathrm{C}}\)

Question from 2 to 13 carry each.

Question 2.
Write any two features of centrally planned economy.
Answer:
Welfare motive or welfare of the people, No private property, govt, planning, govt takes all important decisions etc.

Question 3.
What do you mean by Balance of trade?
Answer:
Difference between value of visible exports and visible imports of goods of a country in a given period of time.

Question 4.
What is meant by Average product and Marginal product?
Answer:
AP = Total Product per variable input or AP = TP/ variable input MP = Change in output/change in input or MP = “TP/”variable input.

Question 5.
What is Cardinal utility analysis?
Answer:
The level of utility can be expressed in numbers or utility can be measured cardinally . Eg:- 50 utils etc.

Question 6.
List out four sectors of the economy according to the marco economic point of view.
Answer:
Household, Firms or Business, Government, External or Foreign Sector.

Question 7.
What is the difference between micro and macro economics?
Answer:
Microeconomics deals with individual behaviour, Macroeconomics with aggregates.

Question 8.
Why the AR and MR curves are the same under per-fect competition?
Answer:
Under Perfect competition, there is uniform price, soAR = MR.

Question 9.
What do you mean by Excess demand?
When total demand is greater than total supply in a market or Total demand>Total supply.

Question 10.
What is meant by Paradox of thrift?
Answer:
If the MPS of the economy increases, the total value of saving in the economy will not increase or If the individual saving increases, the total saving in the economy will not increase.

Question 11.
Briefly explain the market demand.
Answer:
Sum total of individual demand for a good in a particular market at different prices.

Question 12.
Define the Gross national Product.
Answer:
The economic output produced by a nation’s normal residents. They are either in India or in abroad. Or GDP + Net Factor income from abroad = GNP or GNP = NNPmp + Depreciation.

Question 13.
What is meant by the personal income?
Answer:
PI = Nl -Undistributed profit -Net interest payment made by household – corporate tax + Transfer payment to household.

Question 14.
Write a brief note on the central problems of an economy due to scarcity of resources.
Answer:
What is produced and in what quantities? How are these goods produced? For whom are these goods produced?

Question 15.
Write a short note to the Great Depression of 1929.
Answer:
Started in USA, output and employment level in Europe and North America fell by huge amount, many factories were closed or shut down, production fell, huge unemployment, shut down of industries.

Question 16.
Briefly explain the circular flow of income in a simple economy.
Answer:

Question 17.
Identify the important features of monoploy market.
Answer:
Single seller, No close substitute, No entry , price maker, downward sloping demand curve.

Question 18.
Briefly explain any three functions of money.
Answer:
Medium of exchange, Unit of account, Measure

Question 19.
Briefly explain the determination of income in a two sector model.
Answer:

Question 20.
Define the Total Revenue, Average Revenue and Marginal Revenue.
Answer:
TR = total amount of receipts from the sale of the product or TR = Price X output AR = Revenue per unit of commodity sold or AR = TR/QMR = net addition to TR when an additional unit sold or MR =TR_n – TR_n-1; , or MR = ∆TR/∆Q (Since in the Malayalam version to the question, it is asked to define TP, AP and MP, give score 1 + 1 + 1, if the student defines or write the equations to TP, AP and MP.) TP – quantity produced by using a given level of output AP – Output per unit of variable input or TP/variable input MP – change in output/change in input.

Question 21.
When price is ₹10/-, the consumer buys 10 units of commodity. When price rises to ₹20/-, the demand falls to 5 units. Calculate the price elasticity of de-mand.
Answer:
For equation or formula(relevant formula)For correct process For answer (-0.5 or 0.5)∆q/∆p x p/q – 10/10 × 5/10 = – 0.5.

Question 22.
Discuss the important determinants of firm’s supply curve.
Answer:
1. Technological progress
2. input price
3. unit tax

Question 23.
Explain the difference between Revenue deficit and Primary deficit.
Answer:
Revenue Deficit = Revenue Expenditure – Revenue Receipts Primary Deficit = Fiscal Deficit-Net interest payment.

Question 24.
Explain any two features of indifference curve.
Answer:
1. For writing any two features( downward sloping or convex to origin, Higher IC shows higher level of satisfaction and lower IC shows lower level of satisfaction, two ICs never intersect each other)
2. For explanation or figure/diagram

Question 25.
Analyse the features of Perfect competition.
Answer:
Large number of buyers and sellers, Homogeneous product, free entry and exit, price taker, uniform price, perfect knowledge, demand curve parallel to X axis, No transport cost etc.

Question 26.
Define the concepts of stocks and flows with examples.
Answer:
Stocks:- A quantity or variable measured at a particular point of time or static concept. Eg;- Capital, wealth etc. FlowsA quantity or variable measured at particular period of time or dynamic concept. Eg;- Capital formation, income etc.

Question 27.
Distinguish between MPC (Marginal Propensity to Consume) and MPS (Marginal Propensity to Save).
Answer:
MPC = Change in consumption/Change in income or AC/AY or any relevant equation or definition. MPS = Change in saving /Change in income or AS/AY.

Question 28.
What do you mean by the government budget. Explain its objectives.
Answer:
Annual financial statement of the govt. Statement of estimated receipts and expenditure of the govt, for a financial year. Objectives:- Allocation function Redistribution function Stabilisation function Relevant.

Question 29.
What is an open economy? identify the three linkages of an open economy.
Answer:
Relevent definition to open economy (Is one which interacts with other countries through various channels or country having economic relations with other countries) Three linkages:- Output or product market linkage Financial market linkage Labour or Factor market linkage

Question 30.
Suppose the market demand curve of Apple is ; QD = 500 – P. The market supply curve of Apple is; qs = 100 + P. Calculate the equilibrium price and quantity.
Answer:
At equilibrium, Qd = Qs or Qs = Qd 100 + p =500 – p 2p = 400 P = 200 Equi.
Price = 200 100 + p = 100 + 200 = 300
500 -p = 500 “200 = 300 Equi. Quantity ” = 300

Question 31.
List out the important features of monopolistic competition; write two examples of this market.
Answer:

1. Any three features of Monopolistic competition (many firms or fairly large number of firms, differentiated products or non-homogeneous products, free entry and exit, selling cost etc)
2. Any two relevant examples (soap producing firms, Toothpaste producing firms etc).

Question from 32 to 37 carry 5 scores each. (6 × 5 = 30)

Question 32.
Explain price ceiling. Write its two effects.
Answer:
1. Pnceceing :-Thegovernmentimposed upperlimit on the price of a good or services. Fixed below the market determined price. When the government fixes a price ceiling there is an excess demand. Effects :- Rationing, Long queue, creation of black marketing etc.

Question 33.
Classify the following Govt. Expenditures into Revenue Expenditure and Capital Expenditure.
Answer:
Revenue Expenditure: lnterest Payments, Subsidies, Salaries and Pensions Capital Expenditure:- lnvestment in shares, Loans to state Govt. by central govt.

Question 34.
The items in Column A show the concepts related with cost and production. Match them suitably with Coulmn B.

A	B
Short run	Total cost
Marginal product	Some factors are fixed
Total Fixed Cost	ATC
Curve(TFC)	AQ
Total Fixed Cost + Total Variable Cost (TFC + TVC)	Change in output Change in input
Marginal Cost (MC)	Horizontal Straight line parallel to X axis

Answer:
Short run – Some factors are fixed Marginal Product Change in output/change in input Total Fixed Cost Curve(TFC) – Horizontal stright lineparallel to X axis. Total Fixed Cost + Total Variable Cost(TFC + WC) – Total Cost Marginal Cost(MC) – ∆TC/∆Q.

Question 35.
What is Balance of payments (BOP)? Explain the three components of current account of BOP.
Answer:
BoP:-Record the transactions in goods, services and assets between a country with the rest of the world for a specified period, typically a year. Components of current a/c:- Trade in goods, Trade in services, Transfer payments & with brief explanation.

Question 36.
Explain the tax revenue and non-tax revenue of the Central Government.
Answer:

1. Tax Revenue :-Direct Tax and Indirect Tax
2. Direct Tax :- Personal income tax, Corporate tax, wealth tax etc (any two examples)
3. Indirect Tax:- Customs duty, excise duty, GST, etc (any two)
4. Non Tax Revenue :- interest receipts, dividends, profits, fee, grants in aid etc.

Question 37.
Brsefly explain ‘the Returns to scale’.
Answer:
Long run production function/Studies the effects of increase in factors in same ratio on the output (or any relevant point which clarifies the concept) 3 stages of Returns to scIe :- IRS, CRS and DRS

Questions from 38 to 41 carry 8 scores each.

Question 38.
A consumer wants to consume two goods. The prices of two goods are 10/- each. Income of the consumer is 50f-. based on the data:
A) Draw a budget line.
B) Explain the optimal choice of the consumer with the help of indifference curve.
Answer:
A. M/p1 = 50/10 = 5M/p2 = 50/10 = 5
Budget line Diagram with given data and the Budget Equation

B. Diagram and explanation

Question 39.
Complete the given table and define The concepts of TFC, WC and TC.

Output	TFC	TVC	TC	AFC	AVC	SAC	SMC
0	100	0
1	100	100
2	100	200
3	100	300
4	100	400

Answer:

Output	TFC	TVC	TC	AFC	AVC	SAC	SMC
0	100	0	100	–	–	–	–
1	100	100	200	100	100	200	100
2	100	200	300	50	100	150	100
3	100	300	400	33.3	100	133.3	100
4	100	400	500	25	100	125	100

TFC – The total cost to employ fixed inputs or TC – TVCTVC- Total cost to employ variable inputs or TC – TFCTC – Total cost of the firm or TFC + TVC = TC

Question 40.
GDP of a country can be calculated by using three methods. Explain the income and expenditure method.
Answer:

1. For explaining income method(W + P + ln + R)
2. For explain Expenditure method(C + l + G + X M)

Question 41.
The Reserve Bank of India (RBI) controls the money supply in the economy in various ways. Explain. (Hints : Quantitative and Qualitative tools)
Answer:

1. For Quantitative Measures – Bank Rate, CRR, Open Market Operation etc. (any relevant three measures with explanation)
2. For listing any two qualitative measures persuasion, moral suasion, margin requirement etc.

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf March 2022 to improve time management during exams.

Kerala Plus Two Economics Previous Year Question Paper March 2022

Part – I

A. Answer any 4 questions from 1 to 6. Each caries 1 Score. (4 × 1 = 4)

Question 1.
The book ‘General Theory of Employment, Interest and Money1 was written by
a) Adam Smith
b) Alfred Marshall
c) J.M. Keynes
d) David Ricardo
Answer:
Total revenue and total cost

Question 2.
Profit is the difference between
a) Total Revenue and Total Cost
b) Total Revenue and Total Variable Cost
c) Total Revenue and Total Fixed Cost
d) Marginal Revenue and Marginal Cost
Answer:

Question 3.
At the Break-even-point, the firm faces
a) Super normal profit
b) Normal profit
c) Abnormal profit
d) Loss
Answer:
Normal profit

Question 4.
The want satisfying capacity of a commodity is known as
a) Demand
b) Supply
c) Utility
d) Elasticity of demand
Answer:
utility

Question 5.
Which one of the following is a Stock Variable?
a) Wealth
b) Income
c) Investment
d) GDP
Answer:
wealth

Question 6.
Which of the following is included in the current ac-count of balance of payment (BOP)?
a) External borrowing
b) Purchase of assets
c) Foreign Direct Investment
d) Trade in goods
Answer:
Trade in goods

B. Answer all questions from 7 to 10. Each carries 1 score. (4 × 1 = 4)

Question 7.
The market with a few sellers is known as:
a) Perfect competition
b) Oligopoly
c) Monopolistic competition
d) Monopoly
Answer:
oligopoly

Question 8.
The price elasticity of the following demand curve is.

a) e^D > 1
b) e^D < 1
c) e^D = a
d) e^D = 0
Answer:
c) e^D = a

Question 9.
In a perfectly competitive market with free entry and exit, the equilibrium price is
a) equal tomin AC
b) greater than AC
c) less than AC
d) equal to min MC
Answer:
Equal to minimum of AC

.

Question 10.
The ratio of nominal GDP to real GDP is
a) Consumer Price Index
b) Wholesale Price Index
c) GDP Deflator
d) Producer Price Index
Answer:
GDP Deflator

Part – II

A. Answer any 3 questions from 11 to 15. Each carries 2 scores. (3 × 2 = 6)

Question 11.
Write two examples for substitute goods and complementary goods.
Answer:

• Examples for substitute goods are
  1. Tea and coffee
  2. Eye glasses and contact lenses.
• Examples for complementary goods are
  1. Car and petrol
  2. Bread and butter

Question 12.
Distinguish between short-run and long-run in the production process.
Answer:
Under short run only one factor is variable all other factors are fixed, in long run all factors are variable.

Question 13.
What do you mean by market equilibrium?
Answer:
Market equilibrium is a point where the market supply equals market demand.

Question 14.
Elucidate intermediate goods with example.
Answer:
Goods used as an input for producing new goods are called intermediate goods. For example wheat is an intermediate good in case of a bread making company.

Question 15.
Write the appropriate economic term for the following:
a) The rate of change of consumption as income changes.
b) The rate of change of saving as income changes.
Answer:
(a) Marginal propensity to consume (MPC)
(b) Marginal propensity to save (MPS)

B. Answer any 2 questions from 1.6 to 18. Each caries 2 scores. (2 × 2 = 4)

Question 16.
List the major sectors in an economy according to the macro economic point of view)
Answer:
According to Macro economic point of view the different sectors arei:

1. Firms
2. Households
3. Government
4. External sector.

Question 17.
When the price of Apple increased by 20 percent, the quantity supplied of Apple increased by 30 percent. Calculate the price elasticity of supply.
Answer:

Question 18.
Mention two motives behind the demand for money.
Answer:
Money is demanded for many purposes, but it is mainly demanded for:

1. Transaction purposes
2. Precautionary motive.

Part – III

A. Answer any 3 questions from 19 to 23. Each caries 4 scores. (3 × 4 = 12)

Question 19.
Distinguish between centrally planned economy and ‘ market economy.
Answer:
(a) Centrally planned economy – It is an economic system where all means of production are under the ownership and control of the government. This economy otherwise known as socialist economy.

(b) Market economy – Under this system all means of production are under the ownership and control of private individuals. This economy is otherwise known as capitalist economy.

Question 20.
What are the main functions of money?
Answer:
Money plays an important role in the modern world. The vital role played by money can be termed as functions of money. They are

• Primary functions
  1. Medium of exchange
  2. Measure of value
• Secondary functions
  1. Store of value
  2. Standard of differed payment
  3. Transfer of value
• Contingent functions
  1. Basis of credit
  2. Liquidity
  3. Distribution of Nationalincome
  4. Guarantor of solvency

Question 21.
(a) List the characteristics of monopoly market.
(b) Draw the average revenue and marginal revenue curves of the monopoly market.
Answer:
Monopoly is a market situation where one seller or producer of the commodity exists. The main features of monopoly market are given below.
a)

1. Single seller for a product
2. Absence of substitute products
3. Entry of new firms in the market is denied
4. Monopolist has complete control over supply of the product.
5. Firm and industry are the same
6. Firm is price maker

b) Average revenue and Marginal revenue curves under monopoly

Here MR curve lies below AR curve

Question 22.
Equilibrium output and aggregate demand are deter-mined in the following diagram:
(a) Identify the components of Aggregate Demand.
(b) Show the changes in the equilibrium when au-tonomous expenditure increases.
Answer:
a) Aggregate demand consists of autonomous expenditure (A), Marginal propensity to consume (c) and income (y)

A rise in autonomous expenditure will result in an upward parallel shift in AD which result in a new equilibrium E₁ here income increases from y to y₁

Question 23.
Explain the objectives of government budget.
Answer:
Budget is an annual financial statement of income

B. Answer any 1 Question from 24 to 25. Carries 4 scores. (1 × 4 = 4)

Question 24.
(a) Draw Marginal Product Curve and Average product curve in a single diagram.
(b) Identify any two relationship between them.
Answer:

b) Relationship between AP and MP
1. When a AP increases, MP is greater than AP ie. MP curve is above the AP curve.
2. When AP reaches maximum AP and MP are equal.

Question 25.
Match the following:

A	B
GDPat Factor Cost	NDPFO + NFIA
NNPat Factor Cost	GDPMP – Depreciation
NDPat Market Price	GNPMP – Depreciation
NNPat Market Price	GDPMP – Net indirect Tax

Answer:

A	B
GDP at factor cost	GNPMP – Depreciation
NNP at factor cost	GDPMP – Depreciation
NDP at market price	NDPFO + NFIA
NNP at market price	GDPMP – Net indirect Tax

Part – IV

A. Answer any 3 questions from 26 to 29. Each carries 6 scores. (3 × 6 = 18)

Question 26.
(a) Complete the short-run costs table.

Output	TFC	TVC	TC	SAC	SMC
0	20	0		–	–
1	20	20
2	20	30
3	20	34
4	20	40
5	20	60
6	20	100

(b) Draw SAC and SMC curves in a single diagram,
Answer:

Output	TFC	TVC	TC	SAC	SMC
0	20	0	20	–	–
1	20	20	40	40	20
2	20	30	50	25	10
3	20	34	54	18	4
4	20	40	60	15	6
5	20	60	80	16	20
6	20	100	120	20	40

TC = TVC + TFC, SAC = \(\frac{\mathrm{TC}}{\mathrm{Q}}\)
SMC = \(\frac{\Delta T C}{\Delta Q}\)
Q → output

Question 27.
Distinguish Price Ceiling and Price Floor with the help of diagrams.
Answer:
‘Price ‘ceiling’
It is the upper limit on the price of goods and services imposed by the government to protect the interest of consumers (ie. protection from high price)

Here in the diagram P₀ is equilibrium price which is higher, P_c is the ceiling price fixed by government which is lower than P₀.

‘Price floor’
It is otherwise known as support price, it is the minimum price fixed by government to protect the interest of the producers.

Here in the diagram P0 is equilibrium price which is very low. To ensure fair price government fixes floor price above the equilibrium price (P0). It is the floor price.

Price ceiling:	Price floor:
Upper price limit imposed by government	Lower price limit imposed by „ government
It is less than equilibrium price	It is higher than equilibrium price
This will create excess demand	This will create excess supply
Imposed on necessary commodities	Generally imposed on agricultural goods

Question 28.
Differentiate the following with examples:
1. Revenue Receipts and Capital Receipts.
2. Revenue Expenditure and Capital Expenditure.
Answer:
a) Revenue receipts:
The receipts which do not create liabilities or reduce government assets are known as revenue receipts.

1. Capital receipts:
   The receipts that create liabilities or reduce the assets of the government.

b) Revenue expenditure:
Expenditure that does not create assets or reduce liabilities is called revenue expenditure.

1. Capital expenditure:
   Expenditure which creates assets or reduces liabilities is known as capital expenditure.

Question 29.
(a) What do you mean by Exchange Rate?
(b) Briefly explain Flexible Exchange Rate and Fixed , Exchange Rate.
Answer:
a) Exchange rate: It is the rate at which one currency is exchanged for another currency.

b) Fixed exchange rate : It is otherwise known as pegged exchange rate. Here the exchange rate is fixed by government or central bank.

Flexible exchange rate:
This exchange rate is otherwise known as floating exchange rate. Here exchange rate is fixed by farces of demand and supply.

B. Answer any 2 questions from 30 to 32. Each carries 6 scores. (2 × 6 = 12)

Question 30.
Explain the monetary policy tools of RBI to control money supply in the Indian Economy.
Answer:
Monetary policy:
It is the policy franked and implemented by the central bank, through this policy money supply is regulated according to various situations. For this central bank uses certain tools, they are given below.
1. Bank rate
2. Reserve ratios
3. Open market operations.

1. Bank rate:
It is the rate of interest paid by commercial banks on short term loans borrowed from RBI. An increase in bank rate will result in contraction of credit this would help to control inflation. On the other hand a decrease in bank rate will result in expansion of credit, this would help to overcome depression.

2. Reserve ratios:
This include CRR and SLR cash Reserve Ratio (CRR) statutory Liquidity Ratio (SLR) Reserve bank increases both CRR and SLR to control inflation, to control depression reserve bank reduces both CRR and SLR.

3. Open market operations.:
Purchase and sale of government securities by the RBI is known as open market operations. To control inflation RBI sells securities this would reduce the volume of credit provided by commercial banks, Because commercial banks purchase the securities issued by RBI with their loanable funds. To control depression RBI , purchases securities sold earlier. So the money comes back to commercial banks, with this the credit supply increases.

Question 31.
(a) Compare Open Economy and Closed Economy.
(b) Explain the three ways in which an economy interact with rest of the world.
Answer:
Open economy
An economy which has economic relations with other countries of the world through exchanging goods and services, financial assets etc…

1. Product market linkage : Country can import and export goods. This will result in more global co-peration.
2. Financial market linkage : Through this investors can invest in domestic economy as well as in other countries.
3. Factor market linkage : This means factors can be easily transfer-from one nation to another nations. This process improved the connection of different nations.

Question 32.
Observe the following diagram:
Answer:
a) When income change from 50 to 70

When income increased from 50 to 70 the budget line shifts upward, b. When price

when price

when price of x₁ decreased, the x intercept moves forward from 5 to 10, there is no change in y intercept.

Part – V

Answer any 2 questions from 33 to 35. Each carries 8 scores. (2 × 8 = 16)

Question 33.
a) What are the features of indifference curve?
b) Diagrammatically explain the optimal choice of the consumer.
Answer:
i) Indifference curve
It is the locus of points of combinations of two goods which give same level of satisfaction to the consumer.

Features of indifference curve.

1. Indifference curve slopes downwards from left to right.
2. Indifference curve ¡s convex to origin.
3. Higher indifference curves represent higher levels of satisfaction.
4. Indifference curves do not intersect each other

ii) Optimal choice of the consumer A consumer prefers a situation where his satisfaction is maximum. According to indifference curve approach, a consumer attains equilibrium at the point where budget line is tangent to highest possible indifference curve.

Here in the diagram point ‘E’ shows optimal choice of the consumer.

Question 34.
a) Identify the three methods of measuring National Income.
b) Explain any two methods of measuring National Income.
Answer:
Money value of all final goods and services produced by a nation during a financial year is known as national income.  Computation of national income is an important activity. To compute national income we can use three different methods they are

1. Product method or value added method
2. Expenditure method or out lay method
3. Income method

b) 1. Product method or value added method:
Here in this method national income is calculated by adding all the final goods and services produced by all production units in a nation during a financial year. But it is not so easy because the final output produced by a firm is used as input in other firms this problem is termed as double counting. To avoid this problem value added method is used to calculate final value of output. As per value added method, GDP is the sum of gross value added by all the producers in the domestic territory.

2. Income method:
Under his method GDP is calculated by adding together all the factor income received by the owners of factors of production, such as land, labour, capital and entrepreneurship. Therefore as per income method the GDP of an economy is the sum total of wages, rent, interest and gross profit.
ie.GDP = W+R+l+P

Question 35.
a) What are the features of a perfect competitive market?
b) Diagrammatically explain the profit maximisation conditions of perfect competitive firm in the short- run.
Answer:
Perfect competition:
It is a market situation where large number of buyers and sellers operate freely perfect competition is an extreme form of market which is rarely existing in the real world.

Features of perfect competition.

1. Large number of buyers and sellers
2. Homogenous products.
3. Perfect mobility of factors of production
4. Perfect knowledge of market condition
5. Freedom of entry and exit
6. Absence of transport cost
7. Uniform price
8. Absence of selling cost
9. Firms are price takers.

Short run equilibrium Conditions of equilibrium.

1. P = MC
2. MC curve should cut MR curve from below.
3. Price should be greater than or equal to AVC

Diagrammatic representation of equilibrium

The above given diagram represents short run equilibrium under perfect competition.
Here TR = OPAQ
TC = OEBQ
Profit = TR – TC
le. OPAQ – OEBQ = EPAB

Teachers recommend solving Kerala Syllabus Plus Two Economics Previous Year Question Papers and Answers Pdf March 2023 to improve time management during exams.

Kerala Plus Two Economics Previous Year Question Paper March 2023

Answer any 8 questions from 1 to 10. Each carries 1 score:

Question 1.
A good that is non-rival and non-excludable is
(a) Public goods
(b) Inferior goods
(c) Private goods
(d) Capital goods
Answer:
Public goods

Question 2.
The value of Marginal Propensity to Consume (MPC) lies between
(a) 0 and 100
(b)0and1
(c) -1 and +1
(d) 0 and infinity
Answer:
0 and 1

Question 3.
‘For whom to produce’ is the problem related to
(a) Technology of production
(b) Selection of Goods and Services
(c) Distribution of National Income
(d) Price Determination
Answer:
Distribution of National Income

Question 4.
The short run shut-down point of a firm in a perfect competitive market is:
(a) Price = Average Cost
(b) Price = Total Cost
(c) Price = Total Variable Cost
(d) Price = Average Variable Cost
Answer:
rice = Average Variable Cost

Question 5.
The institution that regulates the money supply in India:
(a) NABARD
(b) RBI
(c) WTO
(d) SEBI
Answer:
RBI

Question 6.
If consumer’s income increases, the demand for in-ferior goods
(a) Increase
(b) Constant
(c) Decrease
(d) None of these
Answer:
Decrease

Question 7.
The ratio of Nominal GDP to real GDP is
(a) Consumer Price Index
(b) Wholesale Price Index
(c) Producer Price Index
(d) GDP Deflator
Answer:
GDP Deflator

Question 8.
If export of goods is more than import of goods, then Balance of trade will be:
(a) Surplus
(b) Deficit
(c) Balance
(d) Zero
Answer:
Surplus

Question 9.
The U shape of Long run Average Cost (LRAC) curve is due to
(a) Law of Variable Proportion
(b) Law of Returns of Scale
(c) Law of Demand
(d) Law of Diminishing Marginal Utility
Answer:
Law of Returns of Scale

Question 10.
When output is zero,total Variable Cost (TVC) will be:
(a) Increasing
(b) Decreasing
(c) Zero
(d) One
Answer:
Zero

Answer any 4 questions from 11 to 15. Each carries 2 scroes.

Question 11.
What is intermediate goods? Give one example.
Answer:
It is a good which is used to produce a final good or a finished product. These goods are also known as producers good or intermediate good. Eg : Tyres

Question 12.
If the Cash Reserve Ratio (CRR) of an economy is 25% find the value of money multiplier.
Answer:
Money multiplier = \(\frac{1}{c r r}=\frac{1}{0.25}=\underline{\underline{4}}\)

Question 13.
Write down any two features of Indifference curve.
Answer:
It is the curve representing different combinations of two commodities that give equal satisfaction to a consumer.
Features of Indifference curve
1. Negatively sloping curve
2. Convex to origin

Question 14.
The market demand curve and the market supply curve for wheat are given below: Find the equilibrium price and quantity.
Answer:
Market Equilibrium = Q_d = Q_s Q_d = 50 – 2P,
Q_s = 10 + 2P
50 – 2 P = l0 + 2P
50 – 10 = 2P + 2P
40 = 4P
p = \(\frac{40}{4}\)
so equilibrium Price = 10
To find equilibrium quantity put the value of a P in either demand equation of supply equation.
Q_d = 50 – 2P
= 50 – 2 × 10
= 50 – 20 = 30

Q_s = 10 + 2P
= 10 + 2 × 10
= 10 + 20 = 30
Here the equilibrium quantity is 30

Question 15.
Write down any two objectives of government bud-get.
Answer:
A budget is annual financial statement related to the expected revenue and expenditure of government for a financial year.
Objectives of government budget
1. To attain economic growth
2. To establish equality (through redistribution)

Answer any 4 questions from 16 to 20. Each carries 3 scores.

Question 16.
Write down the three stages of returns to scale.
Answer:
Returns to scale refers to long run production func-tion. In long run all factors are variable, returns to scale explains how output changes according to the changes made in inputs. Here the output changes in three different ways they are as follows.
1. Increasing Returns of Scale (IRS)
2. Constant Returns to Scale (CRS)
3. Diminishing Returns to Scale (DRS)

1. Increasing returns of scale
   • A small increase in input results in a large increase in output.
2. Constant returns to scale
   • Here out put increases in the same proportion as in the input.
3. Diminishing returns to scale

• • Here a large increase in input results only in a small increase in outpout.

Question 17.
List out any three features of perfect competitive market.
Answer:
Features of perfect competition

1. Large number of buyers and sellers
2. Homogenous product
3. Perfect information

Question 18.
Jomon wants to buy rice and wheat with the money income of Rs. 120. Its market Prices are Rs. 15 and Rs. 20 respectively. Find the horizontal Intercept, vertical intercept and slope of the budget line.
Answer:
Take rice as x and wheat as y
Budget line equation = 15 x + 20 y = 120
Horizontal Intercept = 15 x = 120
x = \(\frac{120}{15}\) = 8

Vertical Intercept = 20 y = 120
y = \(\frac{120}{20}\) = 6
Slope = \(-\frac{P x}{P y}=\frac{15}{20}\) = 0.75

Question 19.
Write down the three limitations of Gross Domestic product (GDP) as an indicator of welfare, List out the three ways in which an economy makes economic relations with other economies.
Answer:
We cannot consider GDP as a good indicator of welfare due to following reasons.
1. Inequality in distribution of income:
Even if GDP of a nation is very high we can see people with low income there, so we cannot consider an increase in GDP would promote welfare of a nation.

2. GDP and non monetary exchanges:
Many of the non monetary transactions are not included in GDP: Eg: Service of housewife, Exchange of goods under barter system.

3. GDP and harmful goods:
The value of GDP increases when production increases, it includes the value of harmful prod-ucts.

Answer any 4 questions from 21 to 25. Each carries 4 scores.

Question 20.
List out the three ways in which an economy makes economic relations with other economies.
Answer:
One nation can keep economic relationship with other nation in the following ways
(1) Product Market linkage
(2) Financial market linkage
(3) Factor Market linkage

Answer any 4 questions from 21 to 25. Each carries 4 scores.

Question 21.
Explain the circular flow of income in a two-sector economy with the help of a diagram.
Answer:

• Here households provide factors of production to the firms for this firms provide factor payment.
• Firms provide goods and services required to the household and households give payment as price.

Question 22.
Write a short note on the emergence of macro eco-nomics.
Answer:
Macro economics has emerged as a new branch of economics after global economic crisis of 1928. It was the work done by J.M. Keynes acted as a cata-lyst for the growth of Macro economics. J.M. Keynes criticised classical economists for their unrealistic assumptions related to working of economic factors.

The views of classical economists were wrong and misleading and they failed to solve economic crisis. During this time Keynes published his famous book “General Theory of Employment Interest and Money” in 1936, which acted as a guide to solve the global economic crisis. Later the views of Keynes popularly known as Macro economics.

Question 23.
Write a short note on flexible exchange rate with the help of diagram.
Answer:
Under flexible exchange rate system exchange rate is determined according to changes in demand and supply of foreign exchange.

The above given diagram explains how exchange rate is determined under flexible exchange rate system. D is initial demand curve where ‘e’ is exchange rate when demand increased from D to D₁ as a result exchange rate changed from ‘e’ to e₁.

Question 24.
Explain price ceiling with the help of a diagram.
Answer:
Government Intervention in market against increas-ing price levels of essential commodities by fixing alower price than equilibrium price is known as price ceiling.

‘E’ is the equilibrium in the above given diagram where ‘e_p’ is equilibrium price. When government felt ‘e_p’ is very high and unaffordable for the poor, fixed a new price ‘C_p’ which is ceiling price and lower than ‘e_p’. Through this government protects common people from the adversities of price increase.

Question 25.
Difference between market economy andCentrally planned economy.
Answer:

• We can classify the entire economies in the world into three based on the differences in organization of economic activities, they are
  1. Market economy (Capitalist Economy)
  2. Centrally planned economy (Socialist Economy)
  3. Mixed Economy
• Market Economy (Capitalist Economy)
  1. Means of production are under the ownership of private individuals.
  2. Central economic problems are solved by mar-ket mechanism.
  3. Private property and transfer of wealth to legal heir, e. Profit is the ultimate aim.
  4. Less Government control over economic activities.
• Centrally planned economy (Socialist Economy)
  1.  All means of productions are under Government Ownership and control.
  2. Central economic problems are solved by Gov-ernment through planning.
  3. No private property, all wealths are controlled by government, so there you can see public property.
  4. Maximization of public welfare is the ultimate aim of Socialist Economy.
  5. All economic activities are controlled by government.

Question 26.
Explain the optimal choice of a counsumer (consumer’s equilibrium) with the help of a diagram.
Answer:
Optimal choice of consumer or consumer equilib-rium can be defined as the position of maximum satisfaction attained by a consumer. According to indifference curve approach a consumer attains equilibrium at the point where budget line is tangent to indifference curve. It can be expressed with the help of a diagram.

The above given diagram shows consumer equilibrium. HereAB is budget line of consumer and IC₁, IC₂ and Ic₃ are different indifference curves. Point ‘E’ is the region where highest possible indifference curve (Ic₂) tangents with budget line so that particular point (E) is called consumer equilibrium.

Question 27.
Complete the following flow chart:

Answer:

Answer any 2 questions from 31 to 33. Each carries 8 scores.

Question 28.
Explain the short run equilibrium conditions for profit maximization of firms under perfect competitive mar-ket with the help of diagram.
Answer:
Perfect competition is a market situation where large number of buyers and sellers dealing with homogenous product.
Features of perfect competition:

1. Large number of buyers and sellers
2. Homogenous product
3. Perfect information,
4. Uniform price
5. Freedom of entry and exit

Profit maximisation condition of a firm in short run under Derfect corn Detition.
Three Conditions
1. P= Mc
2. MC should cut MR from below
3. Price should be greater than or equal to AVC Here the above mentioned three conditions follows
le. (1)P = MC
(2) MC cuts MR from below
(3) p ≥ AVC

Question 29.
(a) What do you mean by the price elasticity of demand?
(b) The price of potato falls from Rs. 100 to Rs. 75. As a result of which demand rises from 10 kg to 15 kg. Calculate the price elasticity of demand.
(c) Based on the above information, comment on the nature of the elasticity of demand.
Answer:
Deg ree of responsiveness of quantity demanded of a commodity towards the changes in its price is technically known as price elasticity of demand.
ed = \(\frac{\Delta \mathrm{Q}}{\Delta \mathrm{P}} \cdot \frac{\mathrm{P}}{\mathrm{Q}}\)
a) ∆Q = Change in quantity demanded
∆P = Change in price
p = Original Price (Early Price)
Q = Original quantitydemanded (Early demand)

Here
∆Q = 5 (le. 15-10)
∆P = 25 (le. 100-75)
P = 100
Q = 10
Put the above values in to the equation
ie.ed = \(\frac{\Delta Q}{\Delta P} \cdot \frac{P}{Q}=\frac{5}{25} \cdot \frac{100}{10}\) = 2
ed = 2
b) Based on the answer obtained we can say that elasticity of demand is highly positive and elastic.

Question 30.
(a) Differentiate between Marignal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS)
(b) In a two sector economy, Marginal Propensity to Consume (MPC) is 0.6. Find the investment mul-tiplier.
Answer:
a) Marginal propensity to consume is a concept that explains the impact of change in income on consumption.
MPC = \(\frac{change in consumption }{\mathrm{change in income}}\)
= \(\frac{\Delta C}{\Delta Y}\)
Marginal propensity to save explains the impact of change in income on savings
MPS = \(\frac{change in savings }{\mathrm{change in income}}\)
MPS = \(\frac{\Delta S}{\Delta Y}\)

b) Investment Multiplier = \(\frac{1}{\text { MPS }}\)
As know MPS + MPC = 1
so MPS =1- MPC
MPS = 1- 0.6
= 0.4
Investment multiple = \(\frac{1}{\mathrm{MPS}}=\frac{1}{0.4}\) = 2.5

Answer any 2 questions from 31 to 33. Each carries 8 scores. (2 × 8 = 16)

Question 31.
Explain the three methods of measuring GDP.
Answer:
Money value of all final goods and services produced in a nation during a financial year is known as GDP. Calculation of GDP is an important activity in any economy. GDP Can be calculated in 3 different ways, they are:

1. Product method or value added method
2. Income method
3. Expenditure method

Product Method:
Here the GDP is calculated through adding the val-ues of all final goods and services produced by a nation during a financial year. This method is other-wise known as value added method.

Income Method:
Under this method GDP is calculated through the summation of all factor incomes earned during a financial year. Factor incomes means rent, wage, interest and profit

Expenditure Method:
Here the GDP is calculated through adding all types of expenditure madefy the nation during a financial year, expenditures made by public and private are included here.

Question 32.
Describe the monetary policy instruments of RBI.
Answer:
The Policy implemented by central bank to stabilize the economy through controlling supply of money is known as monetary policy. In india the above mentioned duty is performed by RBI. RBI controls supply of money through two methods they are:
1. Quantitative credit control methods
2. Qualitative credit control methods

• Quantitative credit control methods
  1. Bank rate
  2. Open market operations
  3. Change in cash reserves ratios
  4. Repo Rate and Reverse repo rate
  5. Statutory liquidity ratio.
• Qualitative credit control methods
  1. Marginal requirements
  2. Regulation of consumer credit
  3. Credit rationing
  4. Moral suasion
  5. Direct action.
• Explain the following method
  1. Bank rate
  2. Reserve ratios,
  3. Open market operations

Question 33.
(a) Calculate Total Variable Cost (WC), Average Cost (AC), Average Fixed Cost (A FC), Average Vari able Cost (AVC) and Short run Marginal Cost (SMC):

Output	TFC	TVC	FC	AC	AFC	AVC	SMC
0	70		70
1	70		100
3	70		115
4	70		125
5	70		145
6	70		180
7	70		250

(b) Draw Total Cost (TC), Total Fixed Cost (TFC) and Total Variable Cost (TVC) in a single diagram by using the above data.
Answer:

Reviewing Kerala Syllabus Plus Two Physics Previous Year Question Papers and Answers Pdf SAY 2019 helps in understanding answer patterns.

Kerala Plus Two Physics Previous Year Question Paper SAY 2019

Time : 2 Hours
Total Score: 60

Use the following constants wherever neces-sary:

Permitivity of free space, s0= 8.854 × 10^-12 C²N^-1m^-2
Permeability of free space, JI0= 4π0 × 10^-7 Tm/A
Speed of light in vacuum, c = 3 × 10⁸ m/s

Questions 1 to 4 carry 1 score each. Answer any 3 questions. (3 × 1 = 3)

Question 1.
The value pf Electric field inside a charged conductor is ………….
Answer:
Zero

Question 2.
An e.m.f. of 16V is induced in a coil of self-inductance 4H. The rate of change of current must be
(i) 64 A/s
(ii) 32 A/s
(iii) 16 A/s
(iv) 4A/s
Answer:
(iv) 4A/s

ε = \(\frac{\mathrm{L dI}}{\mathrm{dt}}\)
\(\frac{\mathrm{dI}}{\mathrm{dt}}\) = \(\frac{\varepsilon}{L}\) = \(\frac{16}{4}\) = 4 A/s

Question 3.
The fundamental logic gate represented by the following circuit is:

Answer:
NOT

Question 4.
The type of modulation technique using frequency range 88 MHz. to 108 MHz.
Answer:
FM (Frequency modulation)

Questions 5 to 11 carry 2 score each. Answer any 6 questions. (6 × 2 = 12)

Question 5.
(a) The figure shows the Q(charge) versus V (potential) graph for a two combination of capacitors. Identify the graph representing the parallel combination.

Answer:
Graph A

(b) W rite the expression for the effective capacitance of two capacitors connected in parallel.
Answer:
C = C₁ + C₂

Question 6.
An α particle and a proton are moving in a region normal to a uniform magnetic field B. If two particles have equal linear momenta, what will be the ratio of the radii of their trajectories in the field? (2)
Answer:
Linear moment of α and proton are same
P_α = P_P
Radius R = \(\frac{m v}{q B}\)
r ∝ \(\frac{1}{q}\)
qα = 2q
q_P = q
r_α = \(\frac{1}{2 q}\)
r_P = \(\frac{1}{q}\)

Question 7.
The phasor diagram of an a.c. circuit is shown in figure.

(a) Identify the circuit. (1)
Answer:
Answer:
AC circuit containg inductor only

(b) Prove that the average power dissipated in the above circuit is zero. (1)
Answer:
P_av = V_rmsI_rms cosϕ
for pure indutor = ϕ = 90°
P_av = V_rmsI_rms cos90°
P_av = 0

Question 8.
In an electromagnetic wave, the oscillating electric field having a frequency of 3 x 10¹⁰ Hz. and an am-plitude of 30 V/m propagates in free space in the positive x-direction. Write down the expression to represent the electric field. (2)
Answer:
Wave lenght λ = \(\frac{C}{v}\) = \(\frac{3 \times 10^8}{3 \times 10^{10}}\) = \(10^{-2}\)
K = \(\frac{2 \pi}{\lambda}\) = \(\frac{2 \times 3.15}{10^{-2}}\) = 628 rad/m

Angular frequency ω = 2 π v
= 2 × 3.14 × 3 × 10⁸
18.84 × 10 rad/s

Question 9.
An unpolarized beam of light is incidewnt on water surface as in figure.

(a) Name the law relating refractive index of water with angle of incidence. (1)
Answer:
Brewsters law

(b) Find the value of refractive index of water, if the angle of incidence & 53°.
Answer:
n = tan θ
n = tan 53°
n = 1.33

Question 10.
(a) ypte Einstein’s photo electric equation. (1)
Answer:
Einstein’s photo electric equation

(b) Draw a graph showing the variation of Stopping potential with frequency of incident radiation. Mark threshold frequency on the graph.
Answer:

Question 11.
The block diagram of AM transmitter is shown in figure.

(a) Identify X and Y.
Answer:
x – amplitude modulator
y – power amplifier

(b) The amplitudes of modulating signal and carrier wave are 9V and 12V respectively. Find the value of modulation index.
Answer:
Modulation index M = \(\frac{A_M}{A_C}\) = \(\frac{9}{12}\) = 0.75

Questions 12 to 18 carry 3 scores each. Answer any 6 questions. (6 × 3 = 18)

Question 12.
(a) Name the theorem used to find the electric flux through a surface enclosing charge, (1)
Answer:
Guess theorem

(b) Using this theorem derive an expression for the electric field due to an infinite plane sheet of charge with surface charge density o. (2)
Answer:

Consideran infinite thin plane sheet of charge of density σ.
To find electric f ield at a point P (at a distance ‘r’ from sheet), imagine a Gaussian surface in the form of cyiinder having area of cross section ‘ds’.
According to Gauss’s law we can write,
\(\int \overrightarrow{\mathrm{E}} \cdot \mathrm{~d} \overrightarrow{\mathrm{~s}}=\frac{1}{\varepsilon_0} \mathrm{q}\)
\(\mathrm{E} \int \mathrm{ds}=\frac{\sigma \mathrm{ds}}{\varepsilon_0}\) (Since q = σ ds)
But electric field passes only through end surfaces ,so we get
\(\int \mathrm{ds}\) = 2ds
ie. E 2ds = \(\frac{\sigma \mathrm{ds}}{\varepsilon_0}\)
E = \(\frac{\sigma \mathrm{ds}}{2 ds \varepsilon_0}\), E = \(\frac{\sigma }{2 \varepsilon_0}\)
E is directed away from the charged sheet, if a is positive and directed towards the sheet if a is negative.

Question 13.
(a)With suitable circuit diagram. show how emfs of two cells can be compared using a potentiometer. (2)
Answer:

Principle : Potential difference between two points of a current carrying conductor (having uniform thickness) is directly proportional to the length’of the wire between two points.

Circuit details: A battery (B₁), Rheostat and key are connected in between A and B. This circuit is called primary circuit. Positive end of E₁ and E₂ are connected to A and other ends are connected to a-two way key. Jockey is connected to a two key through galvanometer. This circuit is called secondary circuit.

(b) Why do we prefer potentiometer to measure the e.m.f. a cell than a voltmeter? (1)
Answer:
Potentio meter does not take current at null point and hence measure actual emf. Hence potentio meter is more accurate than volt meter.

Question 14.
Based on the magnetic property, materials are classified into diamagnetic, paramagnetic and ferromagnetic.

(a) Compare paramagnetic and ferromagnetic materials in view of magnetic susceptibility. (1)
Answer:
For paramagnetic susceptibility is small and positive but for ferromagnetic its value is positive and high.

(b) State the law expalining the variation of magnetic susceptibility with temperature in the case of ferromagnetic material. What happens to its magnetic property when the temperature is increased? (2)
Answer:
(i) Curie law
(ii) When temparature increases, at a particular temparature ferromagnetic becomes

Question 15.
Motion of a conductor in a magnetic field induces’ an emf across its ends.

(a) Write an expression for the emf induced across the ends of a conductor moving right angles to a uniform magnetic field.
Answer:
ε = Bl v

(b) An aeroplane is flying horizontally from west to east with a velocity of 720 km/h. Calculate the e.m.f. induced between the ends of its wings having a span of 25m. The vertical component of earth’s magnetic field at the place is 2.19 × 10 5T.
Answer:
Velocity = 720 × \(\frac{5}{18}\) = 200 m/s
emf ε = Bl v
= 2.19 × 10^-5 × 200
0.1090 v

Question 16.
The figure below shows the transmission of light signals through an optical fibre.
(Refractive index of the core – n₁, Refractive index of cladding-n₂)

(a) Name the optical phenomenon happening at the point A. (1)
Answer:
Total internal reflection

(b) Write the necessary conditions for this to happen. (1)
Answer:
i) Light should travel from denser to rarer medium,
ii) incident angle must

(c) Write the relationship between critical angle and refractive indices of the material of the core and cladding of the optical fibre. (1)
Answer:
\(\frac{n_2}{n_1}\) = \(\frac{1}{sin c}\)

Question 17.
(a) Draw a graph showing the variation of de-Broglie’s wavelength (A) with accelerating potential (V).(1)
Answer:
Out of syllabus
λ = \(\frac{1}{\sqrt{2 \mathrm{mev}}}\)
λ ∝ \(\frac{1}{\sqrt{r}}\)
This equation is in the form of y ∝ \(\frac{1}{\sqrt{x}}\) hence, we get a graph as shown below

(b) Express de-Broglie’s wavelength in terms of ac-celerating voltage. (2)
Answer:
de-Broglie’s wavelength λ = \(\frac{h}{P}\)
biet P = \(\sqrt{2 \mathrm{mev}}\)
λ = \(\frac{\mathrm{h}}{\sqrt{2 \mathrm{mev}}}\)

Question 18.
The energy of an electron in the nth electronic orbit of hydrogen atom is
E_n = \(\frac{-m e^4}{8 \epsilon_0^2 n^2 h^2}\)
(a) What does the negative sign signify? (1)
Answer:
Negative sigyis shows that electrons are bound to the nucleus.

(b) Obtain the Rydberg formula for the spectral series of hydrogen atom. (2).
Answer:
Energy of hydrogen atom, when elctron is in the ground state
E_i = \(\frac{-\mathrm{me}^4}{8 \varepsilon_0^2 \mathrm{n}_2^2 \mathrm{~h}^2}\)
Energy of hydrogon atom, when electron is in excited state.
E_f = \(\frac{-m e^4}{8 \varepsilon_0^2 n_f^2 h^2}\)

Energy emitted, when an electron comes from 1 excited state into ground state.
∆ E = E_f – E_i

Questions 19 to 22 carry 4 scores each. Answer any 3questions. (3x 4 = 12)

Question 19.
An electric dipole is placed in a uniform electric field of intensity ‘E’. Let ‘0’ be the angle between dipole moment and electric field.

(a) Derive an expression for the torque acting on the electric dipole in vector form. (2)
Answer:
Torque \(\overrightarrow{\mathrm{\tau}}=\overrightarrow{\mathrm{P}} \times \overrightarrow{\mathrm{E}}\)

(b) What orientation of the dipole corresponds to stable and unstable equillibrium. (1)
Answer:
for stable equilibrium, θ = 0°
for unstable equilibrium, θ = 180°

(c) Write the equation of potential energy corre-sponds to stable equilibrium.
Answer:
Ptential energy U = – PE cos Q or U = \(\overrightarrow{\mathrm{P}} . \overrightarrow{\mathrm{E}}\)

Question 20.
An alternating voltage is applied across an LCR cir¬cuit as in figure.
(L = 100mH. C = 10OuF, R = 50Q)

(a) Draw the phasor diagram of the circuit. (1)
Answer:

(b) In the.circuit, if V = 20sin (100t) volts
(i) Impedance
(ii) Peak value of current
(iii) Resonant frequency of the circuits
Answer:

Question 21.
Coherent sources are necessary for producing sus-tained interference.

(a) Write the condition of coherence.
Answer:
Two light sources are said to be coherant, if they emit light waves of same frequency, same amplitude and same phase.

(b) With the help of a suitable diagram, find the dis-tance between two consecutive bright brands pro-duced by Young’s double slit.
Answer:
Young’s double slit experiment

The experiment consists of a slit ‘S’. A monochromatic light illuminates this slit. S₁ and S₂ are two slits in front of the slit ‘S’. A screen is placed at a suitable distance from S₁ and S₂.
Light from S₁ and S₂ falls bn the screen. On the screen interference bands can be seen.

Explanation : If crests (or troughs) from S₁ and S₂. meet at certain points on the screen, the interference of these points will be constructive and we get bright bands on the screen.

At certain points on the screen, crest and trough meet together. Destructive interference takes place at those points. So we get dark bands

Expression for band width

S₁ and S₂ are two coherent sources having wave length λ. Let ‘d’ be the distance between two coherent sources. A screen is placed at a distance D from sources. ‘O’ is a point on the screen equidistant from S₁ and S₂.
Hence the path difference, S₁ O – S₂ O = 0
So at ‘O’ maximum brightness is obtained.
Let ‘P’ be the position of n,h bright band at a distance xn from O. Draw S₁ A and S₂ B as shown in figure.
From the right angle AS₁AP
we get, S₁P² = S₁A² + AP²
S₁P² = D² + (X_n – d/2)²
= D² + X_n² + X_nd + \(\frac{d^2}{2}\)

Question 22.
(a) What do you mean by half life period of a radio-active substance. (1)
Answer:
Half life is the time taken to reduce half of its initial value.

(b) Write the relation between mean life and half life. (1)
Answer:
T_mean = \(\frac{T_{1 / 2}}{0.693}\)

Teachers recommend solving Kerala Syllabus Plus Two Zoology Previous Year Question Papers and Answers Pdf Model 2021 to improve time management during exams.

Kerala Plus Two Zoology Board Model Paper 2021 with Answers

I. Answer the following questions from 1 to 31 upto a maximum score of 30.
Questions 1 to 7 carry 1 score each.

Question 1.
The cells present in the seminiferous tubules of testes that provide nutrients to the male germ cells are called ______.
Answer:
Sertoli cells

Question 2.
Voluntary termination of pregnancy before full term is called ______.
Answer:
Medical termination of pregnanacy (MTP)

Question 3.
Certain standard symbols are used in the pedigree analysis. Draw the symbols of
a) Normal male
b) Affected female
Answer:

Question 4.
Name the process ‘A’ and ‘B’

Answer:
A – DNA Replication
B – Translation

Question 5.
In Miller’s Experiment, the gases used were
a) CH₄, NH₂, H₂O, H₂
b) CH₄, NH₂, CO₂, H₂
c) CH₄, NH₂, O₂, C0
d) CH₄, NH₂, N₂, O₂
Answer:
a) CH₄, NH₂, H₂O, H₂

Question 6.
The large holes in Swiss cheese are due to the production of a large amount of CO₂, by a bacterium named ______.
a) Saccharomyces cerevisiae
b) Propionibacterium sharmanii
c) Trichodermapolysporum
d) Clostridium butylicum
Answer:
Propionibacterium sharmanii

Question 7.
Expand the following :
a) IARI
b) KVIC
Answer:
IARI- Indian Agricultural Research Institute KVIC- Khadi and Village Industries Commission

Questions 8 to 26 carry 2 scores each.

Question 8.
Complete the flow chart.

Answer:
(a)’Mammary alveoli
(b) Mammary tubule

Question 9.
Differentiate ZZ-ZW mechanism of sex determination from XX-XO mechanism.
Answer:

• ZZ – ZW type
  1. Female birds have one Z and one W chromosome, where as males have a pair of Z- chromosomes besides the autosomes.
  2. In birds the total number of chromosome is same in both males and females.
  3. Female heterogamety.
• In XO type and XY type
  1. Males produce two different types of gametes, Such types of sex determination mechanism is seen in drosophila and human male respectively.
  2. Male heterogamety.

Question 10.

a) Identify the process
b) Write the role of UTR in this process.
Answer:
(a) Translation or Protein synthesis
(b) The UTRs are present at both 5’-end and at 3’end are required for efficient translation process

Question 11.
Write any four common warning signs of drug and alcohol abuse in youth.
Answer:

1. Drop in academic performance
2. unexplained absence from school or college
3. lack of interest ¡n personal hygiene
4. deteriorating relationships with family and friends

Question 12.
a) Name the bacteria which converts milk to curd.
b) “It is essential to add a small of curd the fresh milk to get quality curd.”
Answer:
(a) Lactobacillus
(b) A small amount of curd added to the fresh milk act as an inoculum contain millions of LAB, which
at suitable temperatures multiply and convert milk to curd. It also improves the nutritional quality by increasing vitamin B₁₂

Question 13.
Observe the figure
a) Name the part labelled as ‘A’.
b) Write the functions of’A’.

Answer:
(a) Acrosome
(b) It help the sperm to enter into the cytoplasm of egg results fertilization.

Question 14.
List out FOUR ‘Evil Quartet’ which adversely affect the biodiversity.
Answer:

1. Habitat loss and fragmentation
2. Over – exploitation
3. Alien species invasions
4. Co extinctions

Question 15.
“Doctors recommended breastfeeding is inevitable in initial period of infant growth.” Do you agree with this statement? Justify your answer.
Answer:
The milk produced during the initial few days of lactation is called colostrum which contains several antibodies provide resistance for the new-born babies.

Question 16.

i.‘S’ Strain	Inject into Mice
ii. ‘R’ Strain	Mice die
iii. ‘S’ Strain (Heat Killed)	Mice live
iv. ‘S’ Strain (Heat Killed) + ‘R’ Strain (Live)	Mice live

a) Identify the experiment.
b) Why did the mice die when a mixture to heat killed ‘S’ strain and live ‘R’ strain was injected?
Answer:
(a) Griffith experiment
(b) In a mixture of heat-killed S and live R bacteria, the mice died and recovered living S bacteria from the dead mice. It is due to transforming principle transferred from the heat-killed S strain, to the R strain to synthesise a smooth polysaccharide coat and become virulent.

Question 17.
Father has ‘A’ group Mother has ‘O’ group blood. Find out the possible blood groups of their children.
Answer:
The Possible blood groups of children’s ‘A’ or O group

Question 18.

a) Identify the figure
b) What is its significance in birth control?
Answer:
(a) Tubectomy in female
(b) It is the permanent method of birth control

Question 19.
Differentiate narrowly utilitarian arguments and broadly utilitarian arguments. Give one example for each.
Answer:

Narrowly utilitarian	Broadly utilitarian
Humans get economic benefits from nature.	Biodiversity plays a major role in ecosystem services.
Eg. food, firewood, fibre, construction material, industrial products and products of medicinal importance.	Eg. Amazon forest is through photosynthesis produce 20 per cent of the total oxygen in the earth’s atmosphere.

Question 20.

a) Name the genetic disorder illustrated in this figure.
b) Redraw the amino acid sequence with normal haemoglobin.
Answer:
(a ) Sickle – cell anaemia

Question 21.
Complete the illustration showing the features of an ideal contraceptive.

Answer:
(a) User friendly
(b) Easily available
(C) Effective
(d) Reversible

Question 22.

a) Identify the figure
b) Name the part labelled as ‘P’ and write about its significance.
Answer:
(a) Blastocyst
(b) Inner cell mass – It gets differentiated into embryo.

Question 23.
Categories the following diseases under two headings
(Chlamydiasis, HIV infection, Hepatitis-B, Trichomoniasis)

Completely Curable	Non Curable

Answer:

Completely Curable	Non Curable
Chlamydiasis, Trichomoniasis	HIV infection, Hepatitis – B

Question 24.
a) Expand the term AIDS.
b) Name the causative organism.
c) Identify the diagnostic technique to detect AIDS.
d) Write any two preventive methods to avoid AIDS.
Answer:
(a) Acquired mm uno Deficiency Syndrome

(b) Human 1mm une deficiency Virus or HIV

(c) ELISA Test Enzyme Linked 1mm uno – Sorbent Assay

(d) 1. Use disposable syringe and needles.
2. Propr monitoring of blood before blood transfusion.
3. Avoid intercourse with unknown partner.

Question 25.
Fill in the blanks using the terms given below.
Answer:
(a) Opioids
(b) Papayer somniferum
(c) Hashish
(d) Cannabis sativa

Question 26.
Diagrammatic representation of the operation of Natural selection on different traits are given below.

a) Identify the figures which show stabilising and disruptive selection.
b) What is founder effect?
Answer:
(a) Figure A – Stabilising selection
Figure C – Disruptive selection

(b) The change in allele frequency in the small population from a large population leads to the evolution of new species The original drifted population becomes founders and the effect is called founder effect.

Questions 27 to 31 carries 3 scores each.

Question 27.

a) Identify the process
b) Name the parts labelled as ’A’ and ’B’.
c) Distinguish template strand and coding strand.
Answer:
(a) Transcriptional unit

(b) A – Promoter
B – Terminator

(c) Template strand – with 3-5 polarity, mRNA is produced from template strand. Coding strand Strand- with 5 ‘ 3 polarity , It does not code for anything strand.

Question 28.
a) Mention the different steps involved in test tube baby programme.
b) DifferentiateAl and IUI.
c) Write any two reasons for infertility.
Answer:
(a) In test tube baby programme, ova from the wife and sperms from the husband are collected and are induced to form zygote under simulated conditions in the laboratory.

The zygote with upto 8 blastomeres is transferred into the fallopian tube (ZIFT – zygote intra fallopian transfer) and embryos with more than 8 blastomeres, into the uterus (lUT – intra uterine transfer), to complete its further development.

(b)

AI (Artificial insemination)	lul Intra (Uterine insemination)
Semen collected from the donor isartificially into the vagina.	Semen collected from the donor is artificially into the uterus.

(c) 1. Physical or congenital problems
2. Immunological reason

Question 29.
a) Name the three layers of uterus.
b) Identify the layer which exhibits strong contractions during pregnancy.
c) Name the glandular layer that undergoes cyclical changes during menstrual cycle.
Answer:
(a) Perimetrium, Myometrium, Endometrium
(b) Myometrium
(c) Endometrium

Question 30.
a) Name the genetic disorder caused due to the presence of an additional copy of ‘X’ chromosome.
b) Write down Karyotype and mention at least two characters of that syndrome.
Answer:
(a) Klinefelter’s syndrome

(b) 44A + XXY.

• Masculine development
• Gynaecomastia

Question 31.

a) Identify the figure.
b) Distinguish Homologous and Analogous organs.
c) Comment on the evolutionary significance.
Answer:
(a) Homologous Organ

(b)

Homologous Organ	Analogous organ
Same structure with different function	Similar function but differ in structure
Represent divergent evolution	Represent convergent evolution

(c) Homologous organ represent divergent evolution. Analogous organ represent convergent evolution.