Plus Two

Students can Download Chapter 1 Introduction Microeconomics Questions and Answers, Plus Two Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus Two Economics Chapter Wise Questions and Answers Chapter 1 Introduction Microeconomics

Plus Two Economics Introduction Microeconomics One Mark Questions and Answers

Question 1.
The diagram shows:
(a) A movement from ‘a’ to ‘b’ has no opportunity cost.
(b) A movement from ‘f’ to ‘b’ has an opportunity cost.
(c) Higher is the production of good 2 greater is the opportunity cost of reducing its production.
(d) Higher is the production of good 2 lesser is the opportunity cost of reaching its output.

Answer:
The concave shape of PPC shows that higher the production of goods 1 and 2. Goods 2 higher will be the opportunity cost of reducing production.

Question 2.
State economic terms. The allocations of scarce resources and the distribution of the final goods and services.
Answer:
The central problem of an economy.

Question 3.
As a result of liberalisation policy, the inflow of foreign capital has increased. What is its impact on production possibility frontier?
Answer:
PPC shifts upward as a result of the increase in the availability of capital resources.

Question 4.
What is the shape of a production possibility curve?
(i) Convex to origin
(ii) Concave to origin
(iii) Horizontal
(iv) Vertical
Answer:
(ii) Concave to origin

Question 5.
How does a market economy solve central economic problems?
(i) Central planning
(ii) Price mechanism
(iii) Both (i) and (ii)
(iv) None of the above
Answer:
(ii) Price mechanism

Question 6.
Scarcity definition was given by:
Answer:
(i) Adam Smith
(ii) Alfred Marshall
(iii) Lionel Robbins
(iv) Samuelson
Answer:
(iii) Lionel Robbins

Plus Two Economics Introduction Microeconomics Two Mark Questions and Answers

Question 1.
Fill in the blanks.

Answer:

Question 2.
Classify the following statement into two branches of economics.

1. Indian economy grew by 9.2% GDP in the financial year 2006.
2. An unexpected lorry strike caused the price of vegetables to rise.
3. Recently the RBI reduced the Cash Reserve Ratio to 5.5%.
4. Madras Cement LTD is planning to add 40 lakh tonne to its existing production capacity of 60 lakh tonnes.

Answer:

1. Macroeconomics
2. Microeconomics
3. Macroeconomics
4. Microeconomics

Question 3.
Distinguish between centrally planned economy and a market economy.
Answer:
In a centrally planned economy, the government or the central authority plan all the important activities in the economy. All important decisions regarding production, exchange, and consumption of goods and services are made by the government.

On the other hand in a market economy, all the important decisions are made on the basis of demand and supply conditions. The central problems regarding what and how much to produce are solved through the coordination of economic activities brought about by the price signals.

Question 4.
Give two examples of underutilization of resources.
Answer:

1. Improper distribution of scarce resources leads to underutilisation of capacities,
2. Due to technological backwardness, industrial workers’ capacity is underutilized.

Question 5.
Give a few examples of resources in economics.
Answer:
By the term ‘resources’, we mean land, labour, tools, machinery, etc. in economics.

Question 6.
The government should increase tax on tobacco products. Explain whether the statement is positive or normative.
Answer:
This is a normative statement because it says how the government should tax. It is only an opinion. This cannot be proved. Since it contains a value judgment it is a normative statement.

Question 7.
“Study of aggregates is equally important to study individual units.”
Substantiate the above statement by distinguishing the two branches of Economics. Give two examples for each.
Answer:

1. Microeconomics which is the study of individual units is helpful in analysing a micro-economy, whereas macroeconomics is helpful in under-standing the working of macroeconomy.
2. Microeconomics – Individual income, price of apple Macroeconomics – Inflation, national income.

Plus Two Economics Introduction Microeconomics Three Mark Questions and Answers

Question 1.
Classify the following into Microeconomics and Macroeconomics.
Answer:
Demand analysis, Consumption function, Theory of international trade, Income determination, Pricing of factors of production, Investment function.

Question 2.
Match Column B and C With Column A.

Answer:

Question 3.
“Since resources are limited, they should be properly used”. Comment on this statement in the light of utilization of energy resources in Kerala.
Answer:
This statement relates to the problem of scarcity of resources and thus connected to the scarcity definition of Lionel Robbins. According to this statement, the scarcity of resources forces the economy to choose the most urgent need that is to be satisfied.

Since energy resource in Kerala is limited in supply, it has to be judiciously utilized. Control over the utilization of energy is necessary in states like Kerala so that this scarce resource can be protected.

Question 4.
Classify the following features under the title centrally planned economy and market economy. Price mechanism, comprehensive planning, welfare motive, profit motive, public sector, private sector.
Answer:

Question 5.
“Labour intensive technique is the best technique of production”. Give arguments in favour of and against this statement.
Answer:
Arguments in favour of:

1. Labour intensive technique provides more employment opportunities.
2. Labour intensive technique needs less capital.
3. Labour intensive technique requires less skill only.

Arguments against:

1. Labour intensive technique is less productive.
2. Labour intensive technique prevents development
3. Labour intensive technique makes the economy less productive.

Question 6.
Given below a Production Possibility Curve of an economy. Compare the points in the context of production possibilities of the economy.

Answer:
The Production Possibility Curve is an analytical tool presenting the alternative production possibilities of an economy. It is used to explain the central problems of an economy and how they are solved.
In the diagram:
1. Point A indicates the efficient utilization of available resources.

2. Point B shows that the available resources of the economy are not fully utilized. In other words, it is an indication of the underutilization of resources.

3. Point C is outside the Production Possibility frontier. This means that the economy cannot produce at this point using the available resources.

Question 7.
Suppose there is growth of resources in an economy. How does it affect the PPC?
Answer:
When there is growth of resources the PPC shifts outwards as shown, below.

The PPC shifts from PP to P due to growth of resources in the economy. Therefore, economy produces more of food and cloth.

Question 8.
With the ₹500 cash award received by a student prepares a list of goods. She writes to have each of the goods priced @₹500.

1. An Economics textbook.
2. A movie with her friends.
3. An outing.
4. A dinner with her parents.

Explain opportunity cost. Identify the opportunity cost of buying one economic textbook.
Answer:
Opportunity cost is the next best alternative forgone. The opportunity cost of buying an economic textbook is the foregone movie with friends.

Question 9.
Different economic systems solve basic economic problems using different mechanisms. Complete the following table by writing the basic economic problems as well as the mechanisms used. Also, give one example for each economic system.

Answer:

Question 10.
Read the following statements and write the terms used in economics.
Answer:

1. The curve representing various combinations of any two goods the economy can produce with the available resources and technology.
2. An investigation in economics concerned with it is rather than what ought to be.
3. An economic system in which basic problems are solved through planning.

Answer:

1. PPC
2. Positive economics
3. Socialism

Plus Two Economics Introduction Microeconomics Five Mark Questions and Answers

Question 1.
Classify the following statements into positive and normative statements.

1. Statement I: India introduced a new economic policy in 1991.
2. Statement II: Globalization badly affected India’s agricultural sector.
3. Statement III: The number of people living below poverty line has to be reduced from the present level of 21%.
4. Statement IV: Mean, median and mode are the measures of central tendency.

Answer:

1. Statement I: positive statement
2. Statement II:normative statement
3. Statement III:normative statement
4. Statement IV:positive statement.

Question 2.
“The implementation of Vizhinjam project will shift our PPC rightward”. Suggest two points in favour and against this statement.
Answer:
A production Possibility Curve is an analytical tool presenting the alternative production possibilities of an economy.
Points in favour of:

1. Since the Vizhinjam project needs abundant skilled manpower, it would shift our PPC rightward.
2. Kerala has abundant skilled manpower. They will get more employment and hence ppc will shift rightward.

Points against:

1. The abundant skilled labour available in Kerala is lying unutilized only partially.
2. The project need not be a continuous success as it will badly affect environment.

Question 3.
Prepare a production possibility schedule showing constant marginal opportunity cost.
Answer:

It is clear from the tables that in each production possibility to increase the production of wheat by one tonne, 20 kgs of rubber have to be sacrificed. This shows that there is constant marginal opportunity cost operating in this case. In this case, the PPC of rubber and wheat becomes a straight line.

Question 4.
Differentiate between micro economics and macro economics.
Answer:

Microeconomics	Macroeconomics
Deals with individual units	Deals with aggregates
Provides worms’ eye view	Provides bird’s eye view
Deals with partial equilibrium analysis	Deals with general equilibrium analysis
Known as price theory	Known as income theory

Question 5.
A few statements are given below. Classify them under two branches of economics.

1. RBI formulated its new monetary policy.
2. National Income recorded the highest growth last year.
3. Shyam purchased a new mobile phone.
4. Inflation adversely affects the fixed income of people.
5. Total Fixed Cost of a firm remains constant even if output increases.

Answer:

1. Macro economics
2. Macro economics
3. Microeconomics
4. Macroeconomics
5. Microeconomics

Plus Two Economics Introduction Microeconomics Eight Mark Questions and Answers

Question 1.
Suppose a country uses its entire resources to provide educational and health facilities required for the people. Given the resources, the country can provide various combinations of number of schools and hospitals as shown in the table below.

a. Define PPC and represent the above schedule on a diagram.

b. Suppose the country has already attained near-total literacy. If so, will the country prefer points on upper portion of PPC or points on the lower portion of PPC? Substantiate your answer.

c. Which mechanism will you advice to utilise the resources to provide more health facilities planning or market? Give reasons.
Answer:
a. Production Possibility Curve (PPC) is a graphical representation of all possible combinations of two goods or services that can be produced in an economy with given level of resources and technology. It is also known as production possibility frontier (PPF). The shape of PPC is concave to the origin.

b. Combination D. Because more resources will be spent for health and less on education.
c. Planning. Because only the government can ensure public services.

Question 2.
Prepare a seminar paper on “central problems of an economy.
Answer:
Respected teachers and dear friends,
The topic of my seminar paper is “central problems of an economy”. As we know the central problems arise due to the fact that the human wants are unlimited and the means to satisfy those wants are limited. In this seminar paper, I would like to present the central problems such as what to produce, how to produce and for whom to produce.

Introduction:
The resources available to the consumer are limited but their wants are unlimited. Due to scarcity of resources, the economy faces the problem of choice. It is this mismatch between unlimited wants and the limited resources that gives rise to three central problems faced by every economy.

Contents:
a. What to produce and in what quantities?
An economy faces the problems of what to produce because the resources available to an economy are scarce. As resoruces are scarce, an economy cannot produce all those goods and services the society needs. Therefore, society has to take the crucial decision of what goods and services to be produced in an economy.

For example, the resources of an economy can be used for the production of food, defense equipment or luxury goods. It can also be used for education, health or entertainment. A national society has to make a priority list of items to be produced and allocate the available resources accordingly.

Once the decision regarding what to produce is taken, the next problem is to decide in what quantities the goods and services are to be produced. It is important because the production of one good may lead to the withdrawal of the production of some other goods.

b. How to produce?
After taking the decision regarding the type and quantity of goods to be produced, the next question is ‘how to produce goods arid services’. This problem is related to the method or technology of production. Goods can be produced using different technologies.

There are mainly two technologies for producing goods, viz., labor-intensive technology and capital intensive technology. Labour intensive technology uses more labour compared to capital. On the other hand, capital intensive technology uses more caiptal compared to labour. The choice of technique depends upon various factors like the availability of labour force and capital resources and its prices.

c. For whom to produce?
The goods and services produced once should be distributed among the people of the economy. Whether it should be distributed equally among the people? Should the distribution of the goods be in such a way that at least minimum consumption level has to be attained by everyone in the economy? Should everyone get primary health and education?

Conclusion:
Thus it can be concluded that every economic system faces three basic problems. The solution to these economic problems depends upon the nature of the economic system.

Kerala Plus Two Economics Model Question Paper 4

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates:

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to Qno 14

Question 1.
Imposition of the price ceiling below the equilibrium price leads to
a. Excess demand
b. Excess supply
c. Deficit demand
d. Deficit supply

Question 2.
GDP deflater refers to
a. The ratio of real to nominal GDP
b. The ratio of nominal to real GDP
c. The ratio of nominal NI to real GDP
d. The ratio of nominal GDP to nominal GNP

Question 3.
Which type of market have full control over price?

i. Perfect competition
ii. Monopolistic competition
iii. Monopoly
iv. Oligopoly

Question 4.
Given below is the average cost curve of a firm. Draw a marginal cost curve showing the relationship between AC and MC.

Question 5.
Keyne’s book “General Theory of Employment,interest and money” was published in

(i) 1926
(ii) 1936
(iii) 1946
(iv) 1956

Question 6.
The value of the nominal GDP of India was Rs.2,800 crores during the year 2011 The value of GDP of the country during the same year evaluated at the price of some base year was Rs. 3,200 crores. Find the value of GDP deflater of the year in percentage terms.

Question 7.
In an economy, investment increases by 500 crores. If MPC is 0.5, what is the increase in total income?

Question 8.

Draw the diagram correctly.
(AFC-Average Fixed Cost)

Question 9.
Complete the equations.

a. GDP + ___= GNP
b. GNP – Depreciation =_____

Question 10.
Classify the following under the heads micro and macro economics.
a. Govt, regulations on auto emissions
b. Price elasticity of refrigerators
c. A family’s decision about how much in come to save
d. The impact of higher National savings on Economic growth

Question 11.
Differentiate the terms short run and long run.

Question 12.
The price of a commodity goes up from Rs. 5 to 6 as a result of which demand falls from 8 units to 6 units. Calculate price elasticity of demand.

Question 13.
The demand curve faced by a firm under monopolistic competition is negatively sloped. Explain.

Question 14.
From the Budget line shown below, find the price of good X₂ given that the price of X₁ good is Rs 30. The equation on the Budget line is given as P₁X₁+P₂X₂ 1000.

Answer any 6 questions from Qno. 15 to 21. Each question carry 3 score.

Question 15.
Consider the following figures
Why point E in the figure is considered as consumer’s optimum? justify your answer.

Question 16.
From the table identify the different levels of TP which makes the different phases of the operation of the law of variable proportions.

Question 17.
Match the columns ‘B’ and ‘C’ with ‘A’.

Question 18.
Following information about a firm is given below.

From the given information, estimate
a. Total Fixed Cost (TFC)
b. Total Variable Cost (TVC)
c. Average Cost (AC)
d. Marginal Cost (MC)

Question 19.
Observe the following figures and answer the questions.

i Point out the elasticities on the above supply curves.
ii. Which method is applied here.

Question 20.
The average revenue curve of two market situation are given below:


a. State the market situation corresponding to AR curves.
b. Give reasons for the different shapes.
c. Draw MR curves corresponding to AR curves.

Question 21.
A consumer wants to consume two goods. The prices of two goods are Rs. 4 and Rs. 5 respectively. The consumer’s income is Rs. 20.
a. Write down the equation of the budget line.
b. How much of good 1 can the consumer consume if he spends his entire income on the good ?

Answer any 4 questions from Qno. 22 to 27. Each question carry 5 score.

Question 22.
The following diagram shows the equilibrium price of wheat determined by the supply curve ‘SS’ and market demand curve ‘DD’. With the help of the diagram answer the questions given below.

a. If the Government imposes price ceiling on wheat, what happens to the demand for wheat?

b. Define price ceiling

c. Write down two adverse impacts of price ceiling on the consumers.

Question 23.
Define value added method. A farmer produces 5 Quinta of wheat, out of which he sells 3 Quinta to a flour mill and 1.5 Quinta to consumers at the rate of Rs. 1000/- per Quinta. He retains the balance of 0.5 quinta for self-consumption. For wheat cultivation he spends Rs. 2000/on account of purchasing seeds and fertilizers. Calculate value added by the farmer.

Question 24.
The following table shows TFC and TVC of a firm. Find out TC, AFC, AVC, AC, and MC of the firm

Question 25.
Suppose the Central Govt, sanctioned Rs. 2crore each to 5 states for making additional investments. The MPC of these 5 states are given below. Find multiplier effect.

Question 26.
‘Increase in MPS leads to decrease in saving ’. Do you agree with this statement. Comment.

Question 27.
Borrowing – 10,000
Budget deficit – 40000
Revenue receipts – 50000
Interest payments – 5000
Revenue expenditure – 60000
On the basis of above facts calculate
a. Fiscal deficit
b. Revenue deficit
c. Primary deficit

Answer any 2 questions from Qno. 28 to 30. Each question carry 8 score.

Question 28.
In India RBI has developed alternative measures of money supply and figures are published accordingly.

a. Prepare a chart showing the alternative measures of money supply in India.
b. Categories them into ‘narrow money ’ and ‘broad money’.
c. Also identify the ‘most’ and ‘least’ liquid forms of money.

Question 29.
Given the diagram

(a) Identify:
(i) AB
(ii) Point E
(b) Elaborate the properties of indifference curve.
(c) Point ‘C’ is not the equilibrium point of the consumer, do you agree? Explain.

Question 30.
The economic principle of exchange rate determination are different in different systems. Write in how the exchange rate is determined under:
a. Flexible exchange rate system
b. Fixed exchange rate system
c. Managed floating exchange rate system.

Answers

Answer 1.
a. Excess demand

Answer 2.
The ratio of nominal to real GDP

Answer 3.
iii. Monopoly

Answer 4.

Answer 5.
ii. 1936

Answer 6.
The ratio of nominal GDP to real GDP is known as GDP deflator

Answer 7.
Multiplier (K) = 1/1 – MPC
That is K = 1/1 – 0.5
K = 1/0.5
K = 2
Increase in total income = K x increase in investment = 2 x 500 crores = 1000 crores

Answer 8.

Answer 9.
a. Net Income From Abroad

b. NNP

Answer 10.
a & d Macro economics ; b & c Micro economics

Answer 11.
THE SHORT RUN AND THE LONG RUN.
In the short run, a firm cannot vary all the inputs. One of the factors – factor 1 or factor 2 – cannot be varied, and therefore, remain fixed in the short run. In order to vary the output level, the firm can very only the other factor. The factor that remains fixed is called the fixed input whereas the other factor which the firm can vary is called the variable input. In the long run, all factors of production can be varied. A firm in order to produce different levels of output in the long run may vary both the inputs simultaneously. So, in the long run, there is no fixed input. For any particular production process, long run generally refers to a longer time period than the short run. For different production : processes, the long run periods may be different. It is not advisable to define short run and long run in terms of say, days, months or years. We define a period as long run or short run simply by looking at whether all the inputs can be varied or not.

Answer 12.

Answer 13.
The monopolistically competitive firm could sell more of the commodity only by reducing the price. In case of monopolistic competition, the firm expects small increase in demand if it lowers the price. Hence the marginal revenue is slightly less than the average revenue.

Answer 14.
The consumer’s budget set would consist of all bundles (x₁, x₂) such that x₁ and x₂ are any numbers greater than or equal to 0 and p₁x₁ + p₂x₂≤M.
All bundles in the positive quadrant which are on or below the line are included in the budget set. The equation of the line is p₁x₁ + p₂x₂ = M.

Answer 15.
Point E is considerd as consumer’s optimum. The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves, it is drawn below.

Condition I : Budget line should be tangent to the indifference curve.

Condition II : Slope of IC should be equal to slope of budget line.

Answer 16.

Answer 17.

Answer 18.

Answer 19.
i. S₁ elastic supply
S₂ Unitary elastic supply
S₃ Inelastic supply
ii. Geometric method is applied here.

Answer 20.
a. Perfect competition, monopoly
b. Under perfect competition, firm is price taker
Therefore, AR = MR
Under monopoly, firm is price maker,

Answer 21.
a. The equation of the budget line is
P₁x₁ + P₂x₂ = M
Where P₁ and P₂ are prices of good 1 and good 2. x₁ and x₂ are quantities of goods and M is his money income
b. X₁ = M/P₁ = 20/4 = 5 units

Answer 22.
a. Price ceiling increases the demand for wheat. As supply becomes less, there will be shortage of wheat as shown in the diagram.


b. Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply.

c. Price ceiling also reduce the quality of products as suppliers have less financial resources to reinvest in their business

* Price ceiling will also encourage black markets to thrive in an economy. Shortage in the free market makes the consumer to look for commodities in the black market even though they are highly price.

Answer 23.
Three real value added in the production process is called Gross value added.

Gross value added = Value of output – Intermediate consumption
Gross value added = 5000 – 2000 = 3000

Answer 24.

Answer 25.

Answer 26.
It is usually accepted that an increase in MPs leads to a decrease in saving. This is because, if all the people of the economy increase the proportion of income they save, the total value of savings in the economy will not increase it will either decline or remain unchanged. This result is known as the ‘Paradox of shift’ which states that as people become more thrifty they end up saving less or same or more.

Answer 27.

Answer 28.
a. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measure’s of money supply, viz. M1, M2, M3 and M4. They are defined as follows.

b. i. M1 and M2 are narrow money
ii. M3 and M4 are broad money
M1 and M2 are known as narrow money. M3 and M4 are known as broad money. These gradations are in decreasing order of liquidity. M1 is most liquid and easiest for transactions where as M4 is least liquid of all. M3 is the most commonly used measure of money supply, it is also known as aggregate monetary resources.

Answer 29.
a. (i) Budget line or Budget constraint

(ii) Consumer’s Equilibrium

b. • Downward slopping
• Cover to the origin
• Two indifference curves never intersect
• Higher IC shows higher level of satisfaction
c. Yes. because any point on the budget line other than the point at which it touches the indifference curve lies on lower indifference curve and hence is inferior. Therefore such a point cannot be the consumer’s optimum bundle is located on the budget line at the point where the budget line is tangent to an indifference curve.

Answer 30.
a. A country’s exchange rate regime where its currency is set by the foreign – exchange market through supply and demand for that particular currency relative to other currencies. Thus, floating exchanges rates change freely and are determined by trading in the forex market. This is in contrast to a “fixed exchange rate” regime

b. Fixed Exchange Rate
A country’s exchange rate regime under which the government or central bank ties the official exchange rate to another country’s currency (or the price of gold). The purpose of fixed exchange rate system is to maintain a country’s currency value within a very narrow band. Also known as pegged exchange rate.

In a fixed exchange – rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell Its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged,

c. Managed float regime is the current international financial environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries exchange by buying and selling currencies. It is also known as a dirty float.
Managed float exchange rates are determined in the foreign exchange market. Authorities can and do intervene, but are not bound by any intervention rule. Often accompanied by a separate nominal anchor, such as inflation target. The arrangement provides a way to mix market determined creates with stabilizing intervention in a non – rule based system. Its potential drawbacks are that it doesn’t place hard constraints on monetary and fiscal policy. It suffers from uncertainty from reduced credibility, relying on the credibility to monetary authorities. It typically offers limited transparency.

Plus Two Hindi Previous Year Question Papers and Answers

Kerala Plus Two Economics Model Question Paper 3

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates:

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to Qno 14

Question 1.
The consumer prefer the bundle which has more of at least one of the good and no less of the other good as compared to the other public, consumer preference is
a. Indifference Preference
b. Mono tonic preference
c. Both indifferent and monotonic preference
d. None of the above

Question 2.
Micro economics is also known as

a. Price theory
b. Demand theory
c. Income theory
d. Cost theory

Question 3.
When two commodities are complementary to one another

a. They may be jointly demanded
b. They may be complementary goods
c. They may be substitutes
d. None of the above

Question 4.
Observe the following figures and identify the market situations.

Question 5.
Match the column B and C with column A.

Question 6.
The average revenue curve of two market situations are given below.

a. State the market situation corresponding to AR curves.
b. Give reasons for the different shapes.

Question 7.
Show a circular flow in the following chart.

Question 8.
Find the odd man out and justify your answer.
a. GDP, GNP, NNP, CSO
b. Doctor, Lawyers, Teachers, House wives.

Question 9.
Classify the following items into tax revenue and non tax revenue.
Fees, Profession tax, Sales tax, Fines, Issue of currency, Income from public property, building tax, Escheats, Customs duty.

Question 10.
State whether the following statements are true or false and justify your answer.
a. If MPC = 0.7 MPS will be 0.7.
b. The amount of consumption when income is zero is called negative consumption.

Question 11.
How we can express real exchange rate.

Question 12.
Fill in the missing cells

Question 13.
Complete the chart.

Question 14.
Write down the three identities of calculating GDP of a country by the three methods.

Answer any 6 questions from Qno. 15 to 21. Each question carry 3 score.

Question 15.
Given below is a production possibility curve of an economy. Compare the point in the context of production possibilities of the economy.

Question 16.
Match the following.
a. Rent-Capital
b. Interest – Land
c. Profit – Labor
d. Wage – Organizer

Question 17.
The following is a diagram drawn by a student of +2 class.

a. Can you find any mistake in it ? If so redraw correctly.
b. Write any three relationship between AC and AVC.

Question 18.
Suppose that the market demand in a perfectly competitive industry is given by,
Qd = 700 – 500P and the market supply function is given by, Qs = 4000 + 250P. Find the market equilibrium price.

Question 19.
The price of goods which are used by us is determined by the forces of demand and supply. While the price of certain goods are controlled by the government. Do you agree with this? Elucidate your answer with example

Question 20.
Imagine that you are a monopolist, can you sell more of the commodity at a higher price. Present your argument with the help of a diagram.

Question 21.
Define rate of exchange. If 300 Indian Rupees are exchanged for 6 US Dollar, what is the rate of exchange between Indian Rupee and US Dollar?

Answer any 4 questions from Qno. 22 to 27. Each question carry 5 score.

Question 22.
Under perfect competition, a firm will not produce output level in cases under (a)P>MC and (b) P< MC. If so,what is the condition of profit maximizing output in the short run.Give diagrammatic illustration.
(Hint : Short run equilibrium of a firm under perfect competition).

Question 23.
Complete the following tables and identify the market structure.

Question 24.
Suppose marginal propensity to consume is 0.75 and there is a 20 percent proportional income tax. Find the change in equilibrium income for the following.
a. Government purchase increase by 20.
b. Transfer decrease by 20.

Question 25.
“Tax multiplier is smaller in absolute value than the government expenditure multiplier”. Do you agree substantiate it with one example.

Question 26.
Calculate Private Income, Personal Disposable Income, Net National Disposable

Question 27.
From the schedule given below, calculate the Total Revenue (TR) and derive the demand schedule.

Answer any 2 questions from Qno. 28 to 30. Each question carry 8 score.

Question 28.
a. Prepare a note on market equilibrium.
b. What will happen if the price prevailing in the markets.
i. Above the equilibrium price.
ii. Below the equilibrium price.
c. Discuss the impact of the factors mentioned below on equilibrium price and quantity.
i. Shift in demand to right
ii. Shift in demand to left
iii. Shift in supply to right
iv. Shift in supply to left

Question 29.
Diagrammatically explain the effects of changes in autonomous spending on equilibrium demand in the product market.

Question 30.
a. Classify the following functions under two heads:
Accepting deposits, giving loans and advances, discounting bills, credit creation, re discounting bills, note issue, custodian of foreign exchange reserve
b. The most important role RBI is credit creation and control of money supply. Explain the instruments which RBI uses for conducting monetary policy.

Answers

Answer 1.
Both indifference and monotonic preference

Answer 2.
Price theory

Answer 3.
They maybe jointly demanded

Answer 4.
i. Monopoly
ii. Monopolistic competition

Answer 5.

Answer 6.
a. Perfect competition, monopoly
b. In a perfectly competitive market AR and MR is equal to price. Here, producer is a price taker.

Answer 7.

Answer 8.
a. CSO – All others are related to National Income.
b. Service of housewives – All others are included in National Income estimate.

Answer 9.

Answer 10.
a. False – MPS = 0.3
b. False – Autonomous Consumption

Answer 11.

Answer 12.

Answer 13.

Answer 14.
i. Product method
ii. Income method
iii. Expenditure method

Answer 15.
Point A: It indicates the efficient utilization of available resources.
Point B : It shows that the available resources of the economy are not fully utilized. In other words it is an indication of the under utilization of resources.
Point C : It is outside the production possibility frontier. This means that the economy cannot produce at this point using the available resources.

Answer 16.
a. Rent – Land
b. Interest – Capital
c. Profit – Organizer
d. Wage – Labor

Answer 17.

b. 1. When AC fails,AVC also falls
2. AVC reaches its minimum point even before AC reaches it minimum point.
3. When AC rises, AVC also rises, but asymptotically to AC.

Answer 18.
Equilibrium is determined by the condition, Qd = Qs
In the present problem
7000 – 50P = 4000 + 250P
7000 – 4000 = 250P + 500 P
3000 = 750 P
P = 3000/750 = 4
The equilibrium price in the market is Rs.4.

Answer 19.
Yes, I strongly agree with this statement. Government has controlled certain goods like kerosene, sugar etc. Government control on these commodities are essential for ensuring availability of these commodities to the poor people at reasonable price.

Answer 20.
A monopolist is a price maker. A monopolist can sell more units of a commodity only at a lower price. That is why the demand curve facing a monopolist is a downward sloping curve.

The monopolist sells Q units of goods at OP₁ price. He can increase the sale to OQ₁ only at the lower price OP₀

Answer 21.
An exchange rate (also known as the foreign exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another it is also regarded as the value of one country’s currency in terms of another currency. There are two types of exchange rate namely fixed exchange rate and flexible exchange rate

Answer 22.
Perfect Competition – Short Run Equilibrium In the model of price and output determination under perfectly competitive market conditions, price is determined by the impersonal market forces of supply and demand, and not by individual actions of buyers and sellers. The individual firm in such a market may be said to be a price taker. Perfect competition is used by economists not so much as an attainable goal, but as pure state against which all other markets can be measured.
For a market to be perfectly competitive, the following necessary conditions must, in general, prevail.
1. There must be many firms acting independently. Each firm is small enough relative to the size of the market, so that a single firm’s decision to either stop production entirely or to produce to full capacity will not have any perceptible effect on market supply to cause a change in market price.
2. Entry and exit from the market are free and friction less for both the firms and consumers.
3. The products offered for sale are homogeneous and divisible into small units.
4. Buyers and sellers have perfect knowledge about the market conditions.
5. Price is determined by the impersonal market forces of supply and demand , and not by individual actions of buyers and sellers. The individual firm in such a market may be said to be a price taker.
6. There is a perfect knowledge among consumers about the price at which goods are being sold in the market. Sellers thus cannot manipulate the commodity price and there by exploit the consumer.
7. There is perfect mobility of goods and factor of production among firms. Uniformity in factor prices is prevalent in the market.

If these necessary condition prevail, the firm can lose its entire market if it sets its price above the market price. It can also expect no gain by lowering price, since it can sell all it wishes to produce at the market price.The competitive firm has no price discretion. Market price will not be affected by the independent action of a single firm. No firm is able to influence market price. The objective of each firm is to maximize profit. Profit is the difference between revenue and cost of production. Marginal cost (MC) is the cost incurred to produce an additional unit of the product. If the per unit price of a commodity is greater than the marginal cost, the firm will be interested in producing more of the commodity. On the other hand if price falls below marginal cost, the firm will curtail its production. Equilibrium condition will prevail at a point where profit is maximized. This happens where price is equal to marginal cost (P = MC). Also at the point of equilibrium, the marginal cost curve must be upward sloping.


In the diagram the given price is P. Again the firm will produce the level of output for which MC = MR. This occurs at point E, giving a level of output of Q. Notice that at this point AR = AC, so the firm is making normal profit. In the short run, a perfectly competitive firm could be making super normal profit, or as a loss, or just normal profit,depending on the given market price.Note that if the firm’s losses get too big in the short run (AR < AVC) then it will have to shut down.

Answer 23.

Answer 24.
The change in equilibrium income when government purchase increase by 20 is

A decrease in transfer of 20 will raise equilibrium income by

Thus we find that income increased by less than it increased with a rise in government purchase.

Answer 25.
Yes, I agree with this statement that tax multiplier is smaller in absolute value than the government expenditure multiplier. This is because the government expenditure multiplier. This is because the government expenditure directly affect the total expenditure, while tax multiplier enter the different process. Therefore, the tax multiplier is always less in absolute value than the government expenditure multiplier.
For example: MPC = 0.75, then Government expenditure multiplier.

Answer 26.
Private Income = 6000 + 120 + 100 – 300 – 80 = Rs. 5840 crores
Personal Disposable = 5840 – 60 – 160 -200 = Rs. 5420 crores.

Answer 27.

Answer 28.
a. Equilibrium is defined as a situation where plans of all consumers and firms in the market match and the market clears. In equilibrium, the aggregate quantity that all firms wish to sell equals the quantity that all the consumers in the market wish to buy, in other words, market supply equals market demand. The price at which equilibrium is reached is called equilibrium price and the quantity bought and sold at this price is called equilibrium quantity. Therefore,
q^D(P*) = q^S(P*)
where P* denotes the equilibrium price and g^D(P*)and q^S(P*) denote the market demand and market supply of the commodity respectively at price P*.


b. i. If the price prevailing in the market is above equilibrium price, supply will exceed demand. Under such a situation some firms will not be able to sell their desired quantity, so they will lower their price. All other things remaining constant as price falls quantity demanded rises quantity supplied falls, and finally equilibrium price P* will be restored. At P* quantity demanded will be equal to quantity supplied.

ii.If the price prevailing in the market is above equilibrium price, demand will exceed supply. Under such a situation some consumers will be ready to pay more prices to get the commodity. This will tend to increase the price. All other things remaining constant as price rises quantity demanded falls, quantity supplied rises, and finally equilibrium prices P* will be restored. At P*, quantity demanded will be equal to quantity supplied

c. i.When demand curve shift to right (increase in demand), there will be increase in equilibrium price and increase in equilibrium quantity. This changes is shown in the diagram


ii.When demand curve shift to left (decrease in demand), both equilibrium quantity and equilibrium price falls. This is shown in the diagram.

iii. When supply curve shift to right (increase in supply), the equilibrium price decreases and the equilibrium quantity increases. This is given in the following diagram.

iv. When supply curve shift to left (decrease in supply), the equilibrium price increases and the equilibrium quantity decreases. This is given in the following diagram.

Answer 29.
a. There are two situations of shift of demand and supply curves in the same direction.

1 .Demand and supply curves shift forward. In this case equilibrium quality will increases. Equilibrium price may increase, decrease or remain unchanged.

2.Demand and supply curves shift backward. In this case situation equilibrium quality will decrease. Equilibrium price may increase, decrease or remain unchanged.


b. There are two situations of shift of demand and supply curves in the opposite direction.

1. In this situation equilibrium price will increase, Equal quantity may increase, decrease or remain unchanged.

2. Demand decreases and supply increases In this situation equilibrium price will decrease. Equilibrium quantity may increase decrease or remain unchanged.

Answer 30.

b. Monetary policy refers to the credit control measures adopted by the central bank of a country. G K Shaw defines it as “any conscious action undertaken by the monetary authorities to change the quantity, availability or cost of money”. Instruments of Monetary Policy: The instruments of monetary policy are of two types: first, quantitative, general or indirect; and second, qualitative, selective or direct. They affect the level of aggregate demand through the supply of money, cost of money availability of credit. Of the two types of instruments, the first category includes bank rate variations, open market operations and changing reserve requirements. They are meant to regulate the overall level of credit controls aim at controlling specific types of credit. They include changing margin requirements and regulation of consumer : credit. We discuss them as under:

Bank Rate Policy: The bank rate is the minimum lending rate of the central bank at which it red is counts first class bills of exchange and government securities held by the commercial banks. When the central bank finds that inflationary I pressures have started emerging within the economy, it raises the bank rate. Borrowing from the central bank becomes costly and commercial banks borrow less from it. The commercial banks, in turn, raise their lending rates to the business community and borrowers borrow less from the commercial banks. There is contraction of credit and prices are checked from rising further. On the contrary, when prices are depressed, the central bank lowers the bank rate. It is cheap to borrow from the central bank on the part of commercial banks. The latter also lower their lending rates. Businessmen are encouraged to borrow more. Investment is encouraged. Output, employment, income and demand start rising and the downward movement of checked.

Open market Operations: Open market operation refer to sale and purchase of securities in the money market by the central bank. When prices are rising and there is need to control them, the central bank sells securities. The reserves of commercial banks are reduced and they are not in a position to lend more to the business commonly

Changes in Reserve Ratio: This weapon was suggested by Keynes in his Treatise on Money and the USA was the first to adopt it as a monetary device. Every bank is required by law to keep a certain percentage of its vaults and also a certain percentage with the central bank. When prices are rising, the central bank raises the reserve ratio. Banks are required to keep more with the central bank. Their reserves are reduced and they lend less. The volume of investment, output and employment are adversely affected. In the opposite case, when the reserves ratio is lowered the reserved of commercial banks are raised. They lend more and the economic activity is favorably affected.

Selective Credit Controls: Selective credit controls are used to influence specific types of credit for particular purposes. They usually take the form of changing margin requirements to control speculative activities within the economy. When there is brisk speculative activity in the economy or in particular sectors in certain commodities and prices start rising, the central bank raises the margin requirement on them. The result is that the borrowers are given less money in loans against specified securities. For instance, raising the margin requirement to 60% means that the pledge of securities of the value of Rs 10,000 will be given 40% of their value, i.e Rs 4000 as loan. In case of recession in a particular sector, the central bank encourages borrowing by lowering margin requirements.

conclusion: For an effective anti-cyclical monetary policy, bank rate, open market operations, reserve ratio and selective control measures are required to be adopted simultaneously. But it has been accepted by all monetary theorists that (i) the success of monetary policy is nil in a depression when business confidence is at its lowest ebb; and (ii) it is successful against inflation. The monetarists contend that as against fiscal policy, monetary policy possesses greater flexibility and it can be implemented rapidly.

Plus Two Hindi Previous Year Question Papers and Answers

Kerala Plus Two Economics Model Question Paper 2

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates:

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to Qno 14

Question 1.
Who is known as the father of modem macro economics

a. Adam smith
b. J.M Keynes
c. Alfred marshall
d. J.B say

Question 2.
If the demand curve is a rectangular hyperbola, elasticity is

a. Zero
b. One
c. Less than one
d. Infinity

Question 3. Observe the diagram

Commend on the given demand curve

Question 4.
Which of the following cost will be zero when production is stopped?

a. Average Fixed Cost
b.Total Cost
c. Fixed Cost
d. Variable Cost

Question 5.
Match column A with column B

Question 6.
The Elasticity of Demand for a product is found at ‘A’, State which degree of elasticity is this. Justify your answer.

Question 7.
The market demand function and market supply functions are given as find the equilibrium price and equilibrium quantity.

Question 8.
How is GNP deflater calculated? If the real GNP and nominal GNP are RS 5000 crores and 7000 crores respectively. Calculate the GNP deflators.

Question 9.
Classify the followings into tax revenue and non-tax revenue. Personal income tax, Excise duty, Import duty, License fee, Surplus from public enterprise, Escheat.

Question 10.
Fill in the blanks:
I.____= Revenue Expenditure – Revenue Receipts.
II. Primary Deficit = _______Net Interest Liabilities.

Question 11.
Write the economic term for the following:
a. The situation when people become more thrifty, the economy will end-up savingless.
b. The receipts of the Govt.which create liability or reduce financial assets.

Question 12.
Provide appropriate terms for the following statements.
a. Upper limit on the price of a good imposed by government.
b. The government imposed lower limit on the price of a good.

Question 13.
Identify the following curve

Question 14.
Draw the demand curve of a firm under monopolistic competition.

Write any Six Questions from Q.No 15 to 21, Each carry 3 score.

Question 15.

The digraph shows the aggregate demand in an open economy. Derive the findings from the diagram

Question 16.
Find the odd man out and justify your answer
a. Homogeneous products, free entry and exit, perfect knowledge about market condition, price maker.
b. Hemogeneous product, freedom of entry and exit, large number of buyers and sellers, product differentiation.
c. MC = MR, MR = AFC, MC cuts MR from below, P=AC
d. Technological progress, input price, unit tax, income tax

Question 17.
Two different production possibility curves at two different situations are given below. The first one is supposed to be the PPC of India just before Kargil war. The second one is the PPC of Indonesia just before Tsunami 2004.

a. Draw the change in PPC of India during Kargil War.
b. Draw the changes in PPC of Indonesia after Tsunami.
c. Give reasons for both changes.

Question 18.
Short run MC and AC curves are U-shaped. Write down any three relationships between MC and AC.

Question 19.
Write down the national income identify for an open economy with due explanation of the terms used.

Question 20.
Under oligopoly the output decision of any one firm necessarily affect the price and quantity sold by other firms. Hence the rivals may react to protect the profit. List the three different ways in which oligopoly firms may behave.

Question 21.
Complete the following table and plot TVC, TFC, TC curves.

Answer any 4 questions from Q.No 22 to 27 Each Questions carry 5 Score.

Question 22.
The market price of a goods changes from Rs. 5 to 20. As a result the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output level of the firm.

Question 23.
Compute the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs.10.

Question 24.
Distinguish between the nominal exchange rate and real exchange rate. If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.

Question 25.
The following table shows the total cost schedule of a firm. Calculate TVC, AFC, AVC, SAC and SMC schedules.


(Hints: TVC = Total Variable Cost, AFC = Average Fixed Cost, AVC = Average Variable Cost, SAC= Short run Average Cost, SMC= Short run Marginal Cost.)

Question 26.
C = a + by is the consumption function, where C is aggregate consumption, a is autonomous consumption, b is MPC and Y is income. Suppose a = 20, b = Rs.0.8 a. Constant consumption function line in a graph at various income levels is given below.

b. Show where consumption equals income (break even point).
c. Mark negative saving and positive saving in the graph

Question 27.
Examine the diagram given below. Identify the mistake and redraw the diagram. What is the relation between Total Revenue and Marginal Revenue as the firm expands its output?

Question 28.
a. “Government interference on product price may create problem”. Do you agree with this statement. Substantiate your answer.
b. What will happen if the price prevailing in the market is : (a) above the equilibrium price (b) below the equilibrium price>

Question 29.
a. Given the reaction between business process re-engineering (BPR) and enterprise resource planning (ERP)
b. What is SCM
c. List the advantages of ERP implementation in an enterprises

Question 30.
a. Write a short note on commercial banking system in India
b. Briefly explain functions of commercial banks

Answers

Answer 1.
J.M Keynes

Answer 2.
One

Answer 3.
Shift in demand/increase in demand

Answer 4.
d) Variable Cost

Answer 5.

Answer 6.
Hint: e >1, Point A is above the mid point of the demand curve

Answer 7.
Equilibrium price

200-p = 120+p
2p = 80
P = 80/2
P = 40

Answer 8.
GNP Deflators

Answer 9.

Answer 10.
I. Revenue deficit
II. Fiscal deficit

Answer 11.
a. Paradox of thrift
b. Capital receipts

Answer 12.
a. Price ceiling
b. Price floor

Answer 13.
i. TC Curve
ii. TVC Curve
iii. TFC Curve

Answer 14.

Answer 15.
• In the diagram AD is aggregate demand and AA is the import line.
• Import line AA is positively sloped showing that import increases with income.
• AA is flater than AD because as income increase some of the additional domestic demand falls on foreign goods
• Net exports are a decreasing function of income
• At ytb (‘tb’ stands for trade balance), the level of income at which the value of imports is equal to the value of exports.

Answer 16.
a. Price maker, All others are features of perfect competition.
b. Product differentiation – All others are features of perfect competition.
c. MR = AFC. All others are conditions for firms equilibrium under perfect competition.
d. Income tax – All others are determinants of a firms supply curve

Answer 17.

c. Puring the Kargil War India needed more 1 guns than butter. After Tsunami Indonesia needed more butter than guns.

Answer 18.
i. When marginal cost (MC) is above average cost (AC), the average cost rises, that is, the marginal cost (MC) pulls the average cost (AC) upwards.
ii. When marginal cost (MC) stands equal to the average cost (AC), the average cost remains the same, that is the marginal cost pulls the average cost horizontally.
iii. If the marginal cost (MC) is below the average cost (AC); average cost falls, that is, the marginal cost pulls the average cost downwards.

Answer 19.
National income identify for an open economy
In a closed economy, there are three sources I of demand for domestic goods – Consumption
I (C), government spending (G), and domestic investment (I).
We can write
Y = C + I + G
In an open economy, exports (X) constitute an additional source of demand for domestic goods and service that comes from abroad and therefore must be added to aggregate demand. Imports (M) supplement supplies in domestic markets and constitute that part of domestic demand that falls on foreign good and services. Therefore,the national Income identify for an open economy is
Y + M = C + I + G + X
Rearranging, we get
Y = C + I + G + X – M
or
Y = C + I + G + NX
Where, NX is net exports (exports – Imports).
A positive NX (with exports greater than imports) implies a trade surplus and a negative NX (with imports exceeding exports) implies a trade deficit.

Answer 20.
If the market of a particular commodity consists of more than one seller but the number of sellers is few, the market structure is termed oligopoly. The special case of oligopoly where there are exactly two sellers is termed duopoly. We shall explain the different ways in which the oligopoly firms may behave.
Firstly duopoly firms may collude together and decide not to compete with each other and maximize total profits of the two firms together. In such a case the two firms would behave like a single monopoly firm that has two different factories producing the commodity.
Secondly, take the case of duopoly where each of the two firms decide how much quantity to produce by maximizing its own profit assuming that the other firms would not change the quantity that it is supplying.We can examine the impact using a simple example where both the firms have zero cost.
Thirdly, some economists argue that oligopoly market structure makes the market price of the commodity rigid, i.e. the market price does not move freely in response to changes in demand

Answer 21.

Answer 22.
P = Rs 5 P1 = Rs. 20
P = P1 – P = 20 – 5 = 15
Q = 15 Units
Es = 0.5, Q = ? and Q1 = ?
\({ E }_{ S }=\frac { \Delta Q }{ \Delta P } \times \frac { P }{ Q } \)
0. 5 = 15/5 x 5/Q Or
0. 5 = 5/Q, 0.5 x Q = 5,
Q1 = 5/0.5 = 10
Q1 = Q + ∆Q
= 10 + 15 = 25
Initial output = 10 units
Final output level = 25 Units

Answer 23.

Answer 24.
The price of one currency in terms of the other is called the exchange rate. The exchange rate expressed in terms of money is called nominal exchange rate.

Where e is the one currency price of other currency (ie, nominal exchange rate) P and Pf price levels in two countries
Real exchange rate would be more relevant to buy domestic goods or foreign goods. It is because it protect the business partners from inflation in both the countries.

Answer 25.

Answer 26.

Answer 27.

Answer 28.
A. No, I do not agree with this statement completely because, there were no consequences if the government avoids the market interference of the outside agencies. However, today’s markets are beyond the controls of government. Therefore, the following adverse consequences on the consumers may happen
a. Each consumer has to stand in long ques to buy the goods from ration shops
b. Since all consumers will not be satisfied by the quantity of the goods that they get from the fair price shop, some of them will be willing to pay higher price for it. This may result in the creation of black market


B.a. In this case, many more firms will enter the market releasing that they can earn higher profit here than else where as a result, prevailing price there will be excess supply in the market. This excess supply will lower the market price and the market price will be equal to equilibrium price.
b. In the case many firms who are incurring losses will exit the industry. As a result at a prevailing prices, there will be excess demand will raise the market price will be equal to equilibrium price.

Answer 29.
Before implementing ERP we need to conduct a BPR to determine the changes in the structure of business process. This helps to an enterprise to avoid unnecessary modules in ERP. But all BPR may not lead to the implementation of new ERP.

Supply Chain Management (SCM). It consists of all activities associated with moving goods from the supplier to the customer. It begins with collecting raw material and ends with delivering goods to customer. SCM aim to fast delivery of goods to customers thus increase the customer satisfaction.

1. Improved resource utilization. An enterprise can plan and manage resources effectively by installing ERP software. It reduces the wastage of resources and increases better resource utilization.

2. Better customer satisfaction. Customer satisfaction helps to meet customer needs for a product or service. ERP helps to give customer more importance without spending more time and money.

3. Provides accurate information. ERP provides information needed for future planning and management of enterprise.

4. Decision making capability. Information helps to make decision. This helps to overcome other competitors in business.

5. Increased flexibility. ERP system helps to increase flexibility of an organization. Thus it can adapt to changes. It makes information available without any barrier.

Answer 30.
a. A commercial bank is an institution that accepts deposits from public and are with draw able by cheque and used for lending.
b. The function of commercial banks are a follows:
Primary functions, Secondary functions Development functions.
Primary functions .
This is the most traditional and significant function of commercial bank. They normally accept 3 types of deposits from public (1) Demand /current deposit (2) Savings deposit (3) Fixed/term deposits.
Commercial banks lend credit to the needy against security namely physical assets, salary certificates, proof of credit worthiness etc. The various types of credits are cash credit, cash loans, term loan over draft.
Bill of exchange is a short dated security issued to finance foreign trade. The costumer pays an exporter not in cash but with a bill payable within 3 – 6 months. This can be sold to a commercial bank by the exporter. The bank deducts an amount as its commission for encashing the bill immediately.
When commercial banks advance a loan to a customer a credit account is opened in his name to withdraw the required sum by cheques. In this way bank has created an account which is similar to a deposit. How such a deposit helps the process of credit creation in the banking system is explained
Investment
Banks are also required by law to invest a below part of their funds in approved securities and government securities. Such investments are helpful into two ways.
1. Banks can get income from their surplus funds.
2. Encashability of securities is higher than that of loans
Secondary functions
This can be further classified into agency functions and general utility functions, (a) Agency functions are those functions performed by the bank to its customers as their agent for a commission.
Developmental Functions
It includes :
Low interest loans to weaker sections of the society.
Self employment loans for unemployed.
Loans for rural development.
Infrastructure development
Educational purposes.

Plus Two Hindi Previous Year Question Papers and Answers

Kerala State Board New Syllabus Plus Two Economics Previous Year Question Papers and Answers.

Kerala Plus Two Economics Model Question Papers Paper 1 with Answers

Board	SCERT
Class	Plus Two
Subject	Economics
Category	Plus Two Previous Year Question Papers

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

I. Answer all questions from 1 to 14.

Question 1.
The consumer prefer the bundle which has more of at least one of the good and no less of the other good as compared to the other bundle, consumer preference is ………..
a) Indifference preference
b) Monotonic preference
c) Both indifferent and monotonic preference
d) None of the above
Answer:
b) Monotonic preference

Question 2.
Micro Economics is also known in the name of ………..
a) Price Theory
b) Demand Theory
c) Income Theory
d) Cost Theory
Answer:
a) Price Theory

Question 3.
From the following find the open economy multiplier.

Answer:
c) \(\frac{1}{1-C+m}\)

Question 4.
Identify the demand curve of a monopoly firm

Answer:
b)

Question 5.
Match the coloums A and B. (4 × 1 = 4)

When r = r max speculative demand for money becomes	> 1
The elasticity of demand curve under perfect competition	1
The value of marginal propensity to consume when marginal propensity to save is equal to zero	Infinity
When nominals GDP is Greater than Real GDP, GDP deflator become	0

Answer:

When r = r max speculative demand for money becomes	0
The elasticity of demand curve under perfect competition	Infinity
The value of marginal propensity to consume when marginal propensity to save is equal to zero	1
When nominals GDP is Greater than Real GDP, GDP deflator become	> 1

Question 6.
Observe the diagram.

The initial budget line is AB State the reasons for the changes in the Budget line shown below.
a) From AB to A1 B1
b) From AB to AB2
Answer:
a) Consumers income falls
b) Price of commodity 1 falls

Question 7.
Catagorise the following features of market structure into appropriate heads.
a) Differentiated Products
b) Longrun Price = MC
c) Price Takers
d) Homogeneous Products
e) Longrun Price > MC
f) Some Pricing Power
Answer:
Monopolistic Competiton:
a. Differentiated Products
e. Longrun Price > MC
f. Some Pricing Power

Perfect competition:
b. Longrun Price = MC
c. Price Takers
d. Homogeneous Products

Question 8.
Complete the equations
a) GNP = GDP + ………..
b) ……….. = NNP_FC + Net indirect Tax
c) Personal Disposable Income = ……….. – (Personal Tax Payment + Non Personal Tax Payments)
d) Gross value added = Gross Value – ………..
Answer:
a) GNP = GDP + NFIA
b) NNP_MP = NNP_FC + Net Indirect Tax
c) Personal Disposable Income = Personal Income – (Personal Tax Payment + Non Personal Tax Payments)
d) Gross value added = Gross Value – Value of in-termediary goods

Question 9.
If K = 1/2, GDP Deflator (Price level) = 1.5, Real GDP (y) = 1000 crores
a) Write the Equation of Transaction demand for money
b) Calculate the value of it.
Answer:
a) \(\mathrm{M}_{\mathrm{T}}^{\mathrm{d}}\) = Kpy = 1/2 × 1.5 × 1000 = 150

Question 10.
Classify the following into stock and flow
i) National Income
ii) Changes in inventories
iii) Capital
iv) Money Supply
v) Capital formation
vi) Income of household
Answer:
Stock:
iii) Capital
iv) Money Supply

Flow:
i) National Income
ii) Changes in inventories
v) Money Supply
vi) Income of household

Question 11.
A hypothetical Aggregate Demand function is given below.

When marginal propensity to consume (c) increased to 0.80, show diagramatically the Changes in equilibrium income.
Answer:

Question 12.
Find outthe equation for
a) Cdr
b) rdr
c) Money Multiplier
d) Transaction demand for money
(CU/DD, \(\frac{1+c d r}{c d r+r d r}\), R/DD,K.T)
Answer:
a) CU/DD
b) R/DD
c) \(\frac{1+c d r}{c d r+r d r}\)
d) K.T

Question 13.
Distinguish the concepts of Ex ante and Ex post
Answer:
Ex ante refers to something that is planned. It is the anticipated. For example investment. Export refers to something that is actually realised. This is actually what has been materialised, e.g. Investment.

Question 14.

a) Shade the portion of abnormal profit in the above diagram.
Answer:

Write any Six Questions from 12 to 21, Each carry diagram.

Question 15.
Catagorise the following under suitable titles.
a) All economic activities in the economy organised by individuals through market.
b) Central authority plans to Allocate Resources.
c) Allocation of resources in the economy decided by market mechanism.
d) Government takes decisions regarding the important economic activities in an economy.
Answer:
Capitalist Economy:
a) All economic activities in the economy organised by individuals through market.
c) Allocation of resources in the economy decided by market mechanism.

Socialist Economy:
b) Central authority plans to Allocate Resources.
d) Government takes decisions regarding the important economic activities in an economy.

Question 16.

Diagrammatically illustrate the following changes in the above demand curve of Tea.
a) Price of Coffee increases
b) Income of the consumer decreases
c) Price of tea decreases
Total Fixed Cost is Rs. 10
Answer:
a) When price of Coffee increases people will shift to tea. The demand curve of tea will shift rightward.

b) When the income of the consumer falls, the demand for tea decreases, the demand for tea decreases. It shifts towards left.

c) When the price of tea falls there is a movement along the demand curve downward from the point to another.

Question 17.

Find TVC, TC and AC and Complete the table
Answer:

Question 18.
The RBI Changes is monetary policy instruments as follows.
a) Reduction Cash Reserve Ratio (CRR)
b) Increase statutory Liquidity Ratio (SLR)
c) Increase Bank rate
Explain the effect of these policy charges on money supply and Aggregate Demand.
Answer:
a) Money supply and aggregate demand increases.
b) Money supply and aggregate demand decreases.
c) Money supply and aggregate demand decreases.

Question 19.

The diagram shows the equilibrium of the monopolist in terms of the total curves
a) Explain Break even point and mark it on the diagram.
b) Show the maximum profit level of output in the diagram
Answer:

a) Break even point is the point where the TR and TC are equal. A and B in the diagram shows break even point.
b) q¹ shows the maximum profit.

Question 20.
The value of GDP at Current price in 2016 is ₹ 5000 crores. The dame GDP evaluated at the price of the year 2010 is ₹ 4000 crores. Using this data.
a) Calculate the GDP Deflator
b) Comment on the changes in the price level
Answer:
a) GDP deflator = \(\frac{G D P}{g d p}\)
GDP = Nominal GDP, gdp = Real GDP
= \(\frac{5000}{4000}\)
= 1.25
b) The price level is increased 25% compared to the previous year.

Question 21.
Explain the components of Aggregate demand in a two sector model economy.
Answer:
In a two sector economy AD = C + I
Where C = consumption, I = Investment. In a two sector economy it is assumed that there are only households and firms in an economy.

Answer any 4 questions from 22 to 27. Each Question carry 5 Score. (4 × 5 = 20)

Question 22.
Suppose a consumer wants to consume two goods. The price of Good 1 is ₹ 10, Price of Good 2 is ₹ 5 and the consumer income is ₹ 30, then
a) Write the budget sets
b) From the budget set which bundles – Cost exactly ₹ 30
c) Derive the Budget Line equation.
Answer:
a) (0,1), (0,2), (0,3)
(1.0), (2,0), (3,0), (4,0), (5,0), (6, 0)
(1.1), (1.2)
(2, 1), (3,1), (4, 1)
(2,2) are the bundles.
b) (0,3), (6,0), (2,2) are the bundles which exactly costs ₹ 30.
c) 10x₁ + 5x₂ = 30

Question 23.
‘Perfect Competition is a myth and not a reality’ Do you agree with this argument? Substantiate your answer by analysing the features of perfect competition.
Answer:
The features of perfect competition is given below.

• large number of buyers and sellers
• homogeneous product
• free entry and exit
• the firm is a price maker
• perfect information
• no selling cost

Why this market structure cannot exist in the real world is that it is very difficult to have these features suitable for any market structure.

Question 24.
The Price and Revenue Schedule of a monopoly firm is given below
a) Complete the Table
b) Draw AR and MR Curve

Answer:
a)

b)

Question 25.
Some macro economic variables are given below.

Item	Rs. (in crores)
Depreciation	200
Final Consumption Expenditure	2400
Investment Expenditure	1750
Export	430
Import	450
Government Expenditure	1000
Net Factor Income from Aborad	600
Net Indirect Tax	200

a) Calculate GDPMP by using expenditure method.
b) Calculate National Income (NNP_FC)
Answer:
a) GDP_MP = AD = C + I + G + (x – m)
= 2400 + 1750 + 1000 + (430 – 450)
= 5150 + (-20)
= 5150 – 20 = 5130

b) National Income = NNP_FC
GNP_MP = GDP_NP + NFIA
= 5130 + 600 = 5730
NNP_MP = GNP_MP – Depreciation
= 5730-200 = 5530
NNP_FC = NNP_MP – Net Indirect Taxes
= 5530 – 200 = 5330

Question 26.
Mr. Shaji is a resident Indian Working in the USA. He decided to purchase the following items when he returns to India. He wants to compare the prices of commodities in the USA and India.

Item	Price in USA (Dollar)	Price in India (Rs)
Shirt	20	500
Laptop	500	30000
Leather Bag	50	2500

When Exchange Rate is One dollar = Rs. 50
a) Which Economic Concept will Mr. Shaji use to compare the prices? Write the equation.
b) From which country purchasing these commodities will be more profitable for Mr. Shaji?
Answer:
a) Real Exchange Rate = \(\frac{e p f}{p}\)

b) Shirt = \(\frac{e p f}{p}=\frac{50 \times 20}{500}=\frac{1000}{500}\) = 2 means shirt is expensive in the US.
Laptop = \(\frac{e p f}{p}=\frac{50 \times 500}{3000}=\frac{25000}{3000}\) = 0.53
Means laptop is cheaper in the US, hence better to buy from there.
Leather Belt = \(\frac{e p f}{p}\)
= \(\frac{50 \times 50}{2500}=\frac{2500}{2500}\)
means leather belt costs exactly same in both countries.

Question 27.
The aggregate equilibrium in a simple economy is given below in a diagram.

Diagrammatically explain the following changes on the equilibrium income.
a) Government increases the Revenue expenditure
b) Government increases the Lump-Sum Tax
Answer:
When the government increases its revenue expenditure the AD will shift upward. The equilibrium changes from e to e₁ The level of revenue increases.

b) When the government increases lumpsum tax the AD shifts downward. Equilibrium changes from e to e₁. The level of income falls from y to y₁.

Answer any two Questions from 28 to 30. Each Question Carry 8 marks. (2 × 8 = 16)

Question 28.
a) Explain the concept of market equilibrium with fixed number of firms.
b) Graphically prove how the equilibrium maintain under perfect competition.
c) Show any five changes in the equilibrium price and quantity with the help of diagrams.
Answer:
a) Equilibrium is a situation where the quantity demanded is exactly equal to the quantity supplied.

b) The diagram shows the market equilibrium. D is the demand curve, S is the supply curve. At point e, Qd = Qs. Op is the equilibrium price and Oq is the equilibrium quantity.

ci) Demand increases, equilibrium changes, price and quantity increases.

cii) Demand dereases, equilibrium changes, price and quantity comes down.

ciii)Supply decreases, equilibrium changes, price increases and quantity comes down.

civ)Supply increases, equilibrium changes, price comes down and quantity increases.

cv) Demand increases and supply decreases, .equilibrium changes, price increases and no change in quantity.

Question 29.
A law says that if we keep increasing the employment of a factor input, other inputs fixed, the marginal product initially rises, after reaching a certain level of employment of input, it starts falling.
a) Identify the law.
b) Diagrammatically explain the Law by using Total Product Curve, Average Product Curve and Marginal Product curve.
c) State the relationships between MP and AP.
Answer:
a) A law of variable proportion

b) The law states that if we keep increasing the employment an input with other inputs fixed initially the total product will rise fast, then will reach a point where the total product starts falling. According to the law the marginal product of an input initially rises and then after a certain level of employment it starts falling.

c) Both average and marginal product increases initially. After reaching a certain point both starts falling. The MP will always pass through the maximum point of AP.

Question 30.
a) The Government operates 3 district functions through the budget. Identify and explain these functions of Government.
b) Briefly explain the components of Government Budget.
Answer:
The three functions of Government are
a) i) Allocation function: This function is related to the provision of public and merit goods. The market may not provide them. So the government through budget allocates the provision of these goods.
ii) Distribution function: The government collects high levels of taxes from the rich people and distribute it to the poor sections of the society through subsidies. This is known as distribution function.
iii) Stabilisation function: The government stabilises the economy when there are boon and depression through the aggregate demand. At times of boon government reduces AD and at the time of depression, government takes steps to raise AD.

b)

Kerala State Board New Syllabus Plus Two Economics Previous Year Question Papers and Answers.

Kerala Plus Two Economics Previous Year Question Paper March 2017 with Answers

Board	SCERT
Class	Plus Two
Subject	Economics
Category	Plus Two Previous Year Question Papers

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Question 1.
Which one of the following condition is not satisfied by the long-run equilibrium of a firm under perfect condition?
a) P = AR
b) AR = MR
c) MC = MR
d) AFC = AVC

Question 2.
Identity the curve given below. What does points A, B, C represents?

Question 3.
Match the following:
M1 : Most commonly used measure of money supply
M2: Least liquid form of money supply
M3: M1 + Post Office Savings Deposits
M4: CU + DD

Question 4.
Fill in the blanks:
I.___= Revenue Expenditure – Revenue Receipts.
II. Primary Deficit = _____ – Net Interest Liabilities.

Question 5.
Suppose the demand and supply functions of wheat are given by Q_D = 800 – 4P and Q_S = 600 + 4P respectively.
I. Find the equilibrium price and quantity demanded.
II. Due to a shortage of fertilizers, the cost of production of wheat is increased. So that the new supply function is Q_S = 400+4P. What will happen to the equilibrium price and quantity demanded?

Question 6.
Explain the working of a pegged exchange rate system with suitable diagram.

Question 7.
Why there is different price elasticity along a linear demanded curve? Illustrate with the help of a diagram.

Question 8.
Write a note on the interest responsiveness of the following motives for the demand for money.
I. Transaction Motive
II. Precautionary Motives
III. Speculative Motives

Question 9.
From the Budget line shown below, find the price of good X₂ given that the price of X₁ good is Rs.30. The equation on the Budget line is given as P₁X₁+P₂X₂ = 1000.

(Hint: X and Y axes shows the number of units of respective goods purchased)

Question 10.
Which of the following is not correct?
I. Y = C + I + G + X – M
II. GNP = GDP + Net Factor Income from abroad
III. NNP = GNP – Depreciation
IV. NDP = GDP – Net Indirect Taxes

Question 11.
Goods which are consumed together is known as
a. Substitute goods
b. Complementary goods
c. Normal goods
d. Giffen goods

Question 12.
Elucidate the working of Autonomous Expenditure Multiplier Mechanism with a suitable example. Show the impact of a decline in MPC on multiplier.

Question 13.
Match the following:

Question 14.
Which among the following is not a characteristic of a Capitalist Economy?
a. Wages and prices are administered by the government.
b. Private ownership of means of production.
c. Production takes place for exchange.
d. Sale and purchase of labor services at a price is called wage rate.

Question 15.
Rising portion of long run marginal cost curve from the minimum of long run average cost curve is known as
a. Long run supply curve of the firm.
b. Long run demanded curve of the firm.
c. Variable cost curve of the firm.
d. Fixed cost curve of the firm.

Question 16.
Graphically explain the short run equilibrium of the firm under Perfect Com-petition. Draw separate diagram depicting the following conditions:
I. The firm is earning super normal profit.
II. The firm is earning only normal profit.
III. The firm is incurring a loss.

Question 17.
How does equilibrium price and quantity demand affected when
I. Both demand and supply curves shifts in the same directions.
II. Demand and supply curve shifts in the opposite directions.

Question 18.
Why the Average Revenue Curve and Marginal Revenue Curve of a firm under monopolistic competition is negatively sloped?

Question 19.
Examine the diagram given below. Identify the mistake and redraw the diagram. What is the relation between Total Revenue and Marginal Revenue as the firm expands its output?

Question 20.
Distinguish between a stock and flow variable. Illustrate with examples.

Question 21.
Explain the concept of High powered money.

Question 22.
Consider the following diagram. Answer the following questions:

I. What does the 45° line represent?
II. What is the difference between A1 and A2?
III. List two possible reasons for an increase in Autonomous Expenditure.
IV. When the economy moved from E1 to E2, the Aggregate output is increased more as compared to Aggregate Expenditure. Why?
V. Explain the movement of the economy from E1 to E2.

Question 23.
Among the following choose the one which represents the multiplier

I. What does the 45° line represent?
II. What is the difference between A1 and A2?
III. List two possible reasons for an increase in Autonomous Expenditure.
IV. When the economy moved from E1 to E2, the Aggregate output is increased more as compared to Aggregate Expenditure. Why?
V. Explain the movement of the economy from E1 to E2.

Question 24.
Distinguish between Revenue Expenditure and Capital Expenditure

Question 25.
Differentiate between Devaluation and Depreciation.

Question 26.
The following table shows the total cost schedule of a firm. Calculate TVC, AFC, AVC, SAC and SMC schedules.

(Hints: TVC = Total Variable Cost, AFC = Average Fixed Cost, AVC = Average Variable Cost, SAC= Short run Average Cost, SMC= Short run Marginal Cost.)

Kerala State Board New Syllabus Plus Two Economics Previous Year Question Papers and Answers.

Kerala Plus Two Economics Previous Year Question Paper March 2018 with Answers

Board	SCERT
Class	Plus Two
Subject	Economics
Category	Plus Two Previous Year Question Papers

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

(Qn. No. 1 to 4) Choose the correct answer for the following. Each carries one score. (5 × 1 = 5)

Question 1.
Central problems of an economy arises due to which one of the following:
a) Relative scarcity of resources.
b) Abundance of labour and capital.
c) Limited human wants.
d) None of the above.
Answer:
a) Relative scarcity of resources.

Question 2.
The GDP and GNP of an economy will be equal when:
a) The value of Net Factor Income from abroad positive.
b) The value of Net Factor Income from abroad negative.
c) The value of Net Factor Income from abroad zero.
d) The value of Net Factor Income from abroad equals 1.
Answer:
c) The value of Net Factor income from abroad zero.

Question 3.
The ratio between stock of money supply and stock of high powered money is:
a) Currency Deposit Ratio (RDR)
b) Reserve Deposit Ratio (RDR)
c) Open Economy Multiplier
d) Money Multiplier
Answer:
d) Money multiplier

Question 4.
Write the economic term for the following:
a) The situation when people become more thrifty, the economy will end-up saving less.
b) The receipts of the Govt, which create liability or reduce financial assets.
Answer:
a) Paradox of thrift
b) Capital receipts

Question 5.
Match column B and C with A.

A	B	C
a) Monopolistic Competition	i) Single Seller	i) Differentiated products
b) Monopoly	ii) A few sellers	ii) Homogeneous or Differentiated products
c) Oligopoly	iii) Fairly large number of cells	iii) Absence of substitutes

Answer:

A	B	C
a) Monopolistic Competition	i) Fairly large number of cells	i) Differentiated products
b) Monopoly	ii) Single Seller	ii) Absence of substitutes
c) Oligopoly	iii) A few sellers	iii) Homogeneous or Differentiated products

Answer all questions from 6 to 14. Each question carries 2 Scores. (9 × 2 = 18)

Question 6.
Two short run product curves of a firm are given below:

a) Name the curve (1) and curve (2) in the diagram
b) Write any one relationship between the two curves.
Answer:
a) MP curve (1) and AP curve (2)
b) When the value of MP is greater than ‘AP’ then AP increases.
When the of MP is less than the value of ‘AP’ then AP decreases.

Question 7.
The demand and supply function of a commodity are given below:
q^D = 80 – 2P
q^S = 60 + 2P
Find the equilibrium price and equilibrium quantity.
Answer:
At equilibrium qD = qs
80 – 2P = 60 + 2P
80 – 60 = 2P + 2P
20 = 4P
q^D = 80 – 2p = 80 – 2 × 5 = 80 – 10 = 70
equilibrium price = 5
equilibrium quantity = 70

Question 8.
Following data shows the level of total expenditure of an economy during a particular year. Calculate GDP_MP

Items	₹ in crores
a) Private final consumption expenditure (C)	6,500
b) Government consumption and investment expenditure (G)	5,000
c) Private Final Investment Expenditure (I)	4,000
d) Export (X)	600
e) Import (M)	900

Answer:
GDP_MP = C + I + G + (X – M)
= 6500 + 5000 + 4000 + 600 – 900
GDP_MP = 15200

Question 9.
Calculate price elasticity of demand at point A and B by using geometric equation from the following linear demand curve.

Answer:
A = |e_D| > I
B = |e_D| < I

Question 10.
Following data shows the money supply of an economy. Calculate M₁ and M₃.

Items	₹ in crores
a) Total currency notes and coins with the public	20,000
b) Net demand deposits with commercial banks	40,000
c) Savings deposits with post office Savings Bank	1,000
d) Net time deposits with the commercial banks	3,000

Answer:
M₁ = Cu + DD
Cu = Currency and coins held by the public
DD = Demand deposits in commercial banks
= 20,000 + 40,000 = 60,000
M₃ = M₁ + Net time deposits with the commercial banks.
= 60,000 + 3,000 = 63,000

Question 11.
“Total Revenue curve of a firm under perfect competition is an upward sloping straight line passing through origin.” Give two points to support the statement.
Answer:

1. When output is zero total revenue will also be zero. So TR curve starts from the origin
2. As output level increases total revenue also increases

Question 12.
Following are the two statements that the consumers and investors of an economy can enjoy with foreign trade.
Statement 1: Consumers and firms have the opportunity to choose between domestic and foreign goods.
Statement 2: Investors have the opportunity to choose between domestic and foreign assets.
Identify the linkages that corresponding to each statement.
Answer:
Statement 1: Product market linkage
Statement 2: Financial market linkage

Question 13.
Classify the following items into Revenue Receipts and Capital Receipts.
(i) Government collected ₹ 20 crores as Goods and Service Tax (GST).
(ii) Govt, borrowed ₹ 50 crores from RBI by selling treasury bills.
(iii) Govt. raised an amount of ₹ 10 crores through disinvestment.
(iv) Govt, received ₹ 5 crores as interest receipts of loans given by Central Govt.
Answer:
Revenue receipts: (i), (iv)
Capital receipts: (ii), (iii)

Question 14.
Draw an imaginary production possibility Frontier and mark a point which represents fuller utilization of resources and a point which represents under utilization of resources.
Answer:

Pont A indicates the efficient utilization of available resources.
Point B shows that the available resources of the economy are not fully utilized.

Answer any 6 questions from 15 – 21. Each carries 3 scores. (6 × 3 = 18)

Question 15.
Graphically illustrate the determination of equilibrium exchange rate under flexible exchange rate system.
Answer:
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. They do nothing to directly affect the level of the exchange rate. It can be illustrated with the help of figure.

The exchange rate is determined at the point where the DD curve for foreign exchange cuts the supply curve.

Question 16.
Calculate price elasticity of supply at points ‘s’ in the following diagrams.

Answer:
A) S Elastic supply
B) S Unitary elastic supply
C) S Inelastic supply

Question 17.
“Modern Macro economics is the off shoot of the Great Depression of 1929.” – Write any three points to support the statement.
Answer:

• The classical theory failed to explain the problem of long lasting unemployment in the economy.
• The great depression of 1929 and the subsequent years created huge economic crisis in the coun¬tries of Europe and North America.
• Due to depression production fell down.

Question 18.
The diagram represents the profit maximizing level of output in a particular market structure.

a) Identify the market structure mentioned in the diagram.
b) Name the curves labelled as curve (1) and curve (2).
c) Identify the profit maximizing level of output.
Answer:
a) Perfect competitive market
b) Curve (1) TC and curve (2) TR
c) q2

Question 19.
In an economy, if marginal propensity to consume (MPC) = 0.6 and marginal propensity to import (MPM) = 0.05, calculate:
a) Tax Multiplier
b) Govt. Expenditure Multiplier
c) Open Economy Multiplier
Answer:

Question 20.
Governments have mostly depend on borrowings for meeting its budgetary deficits. But this Govt, debt act as a burden on future generation. Do you agree with this statement? Substantiate.
Answer:
I agree with this statement. If the government borrow more, it may lead to a situation that the private investors cannot get enough fund from the capital market for investment. This is known as crowding out effect. So this may help the private sector to borrow more in future. The government can reduce budget deficit either through increasing taxes or by reducing public expenditure.

Question 21.
Classify the followings into short run and long run production function:
a) Law of variable proportion
b) Returns to scale
c) All inputs are variable
d) Some inputs kept constant
e) Factors are changing proportionately
f) Law of diminishing marginal product
Answer:
Short run production function:

• Law of diminishing marginal product
• Law of variable proportion
• Some inputs kept constant

Long run production function:

• Returns to scale
• All inputs are variable
• Factors are changing proportionately

Answer any 4 of the following from 22 – 27. Each carries 5 scores. (4 × 5 = 20)

Question 22.
a) Illustrate graphically the price fixation action of the government to protect the consumers from huge price rise.
b) State any two consequences of this action on consumers.
Answer:
a) The price determined in the market by the forces of demand and supply is very high, the common man will find it very difficult to purchase the goods. Then the government will interfere in the market. The government will fix a price that is less than the market determined price. This is known as price ceiling.
This can be explained with the help of figure.

In the diagram, ‘ep’ is the market determined equilibrium price. If this price is very high then the govt, will fix price ‘p’ which is less than market price ‘ep’.

b) This leads to the following situations

• Rationing: The government will supply goods at ‘p’ price through ration shops.
• This may lead to huge burden to the government as subsidy.

Question 23.
In a two sector economy, consumption function C = 80 + 0.6 y, Autonomous Investment \(\overline{\mathrm{I}}\) = 50 crores.
a) Calculate the value of output multiplier
b) Find the aggregate demand and equilibrium income in the economy.
c) If investment increases to ₹ 60 crores calculate its effect on equilibrium income.
Answer:
a) Output multiplier = [/latex]\frac{I}{I-C}\( = 2.5

Question 24.
a) List out two features of public goods.
b) How does private goods differ from public goods?
c) Give two appropriate examples for each
Answer:
a) i) Non-rivalry ii) Non-excludability
b) Public good is very difficult to charge price but in private good, charge price for the use.
c) Example of public goods are Road and National defence
Example of private goods are car and clothes.

Question 25.
Given the demand curve of a firm:

a) Identify the market strcuture represented on the figure.
b) Show grahically the profit maximizing condition of the above market in the short run:
i) With normal profit
ii) With abnormal profit
Answer:
a) Perfect competitive market
b) i) The point at which total revenue (TR) equals total cost (TC) is known as break even point.
At the break even point the firm will get normal profit

In the short run ‘B’ is the break even point or normal profit.
ii) Profit maximisation conditions are :

• Price should be equal to marginal cost
• At equilibrium level of output, MC should not be non decreasing
• Price should be more than or equal to minimum point of AVC

Question 26.
Explain the relationship between TP, AP and MP in the short-run with the help of a diagram.
Answer:
The three stages of returns to a factor can be explained through the following diagram.

First stage: The marginal product (MP) increases i.e. total product (IP) increases at an increasing rate. This stage is known stage of increasing returns to a factor.

Second stage: In this stage the marginal product decreases. Here the TP increases at a decreasing rate. This stage is known as diminishing returns to a factor.

Third stage: Here the marginal product becomes negative. Therefore the total product decreases. This stage is known as stage of negative returns to a factor.

Question 27.
Sometimes duopoly firm behave like a monopoly firm. Some other times they are competing each other. Explain the behaviour and features of Oligopoly/Duopoly firm.
Answer:
Oligopoly:
The term oligopoly has derived from two terms oligo (small) and poly (seller). Thus oligopoly is a market situation characterized by a competition among few sellers. In simple terms, it is a competition among few sellers in the market selling either homogenous or differentiated product. The industries manufacturing car, motor cycle, scooter etc. are some of the examples for oligopolistic competition.

Features:
The main features of oligopolistic competition are as follows:

• Few sellers: The number of sellers or producers would be few under oligopolistic competition.
• Homogneous or differentiated products: The products sold under oligopolistic competition would be either homogneous (e.g. gas, petrol) or differ – entiated (e.g. car, scooter)
• Free entry and exit: Free entry and exit persist under oligopolistic competition.
• Selling cost: Firms spend on advertisement and sales promotion.
• Interdependence of the firms: Since the number of firms under oligopoly are few, they are highly interdependent. The action of one firm will certainly have impact on other firms in terms of price, quality of the product, etc.
• Price leadership: Some of the firms may emerge as price leaders under oligopoly. The price leader could be the first firm in the industry or the firm with largest number of consumers. The price leader takes the important decisions regarding the-vital decisions such as the price of the product or number of units to be produced in the market, etc.

Answer any 2 of the following from 28 – 30. Each question carries 8 scores. (8 × 3 = 24)

Question 28.
RBI reduces its rate of lending to commercial banks at 25 point basis in its third monetary policy review of 2017-18.
a) Which policy instrument is used by RBI in the above context?
b) Briefly explain the operation of any three monetary policy instruments that RBI would adopt during inflation.
c) Name the instrument that RBI often uses for stabilizing the stock of money from external shocks.
Answer:
a) Bank rate policy
b) Instruments of Monetary Policy and the Reserve Bank of India.

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 can affect the reserve deposit ratio of 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 Re¬serve Ratio (CRR) and Statutory Liquidity Ratio (SLR) also work through the rdr-route. 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.

c) Open market operations

Question 29.
a) Write down the identities of calculating GDP of an economy using three methods.
b) There are only 2 producting units, A and B in the economy. Calculate:
i) GVA_MP of firm A.
ii) GVA_MP if firm B.
c) Calculate GDP_MP

Items	Amount (₹ in Crores)
i) Sales by firm A	10,000
ii) Sales by firm B	20,000
iii) Change in stock of firm B	2,000
iv) Change in stock of firm A	500
v) Purchase of raw materials by firm A	5,000
vi) Purchase of raw materials by firm B	6,000
vii) Consumption of fixed capital by firm A & B	1,800

Answer:
a) GDP ≡ [latex]\sum_{i=1}^{N}\) GVAi / GVA₁ + GUVA₂ + GVAn
≡ \(\sum_{i=1}^{N}\) RVi = C + I + G + X – M = W + P + Iu + R

b) GVA_MP → A = Gross value – intermediate consumption = 5500
GVA_MP → B → Equation = 16000

c) aDP_MP = GVA_MP pf firm A + GVA_MP of firm B
= 21,500

Question 30.
a) Mr. Roy wants to buy rice and milk with the money income of ₹ 200. Its market prices are ₹ 10 and ₹ 5 respectively.
i) Derive the budget line equation.
ii) Find the slope of the budget line.
iii) Find out horizontal and vertical intercept.
b) Explain the optimum level of the consumer (Consumer’s Equilibrium) with suitable diagram.
Answer:
a) i) P₁X₁ + P₂X₂ = M
10X₁ + 5X₂ = 200
Budget line can be taken as

b) The consumers equilibrium is that point at which the budget line is tangent to the indifference curve. In the diagram ‘E’ is the consumers equilibrium. The consumer will purchase the consumption bundle at the point ‘E’.

The points A & B does not show the equilibrium. The consumer gets more satisfaction on indifference curve IC₃ than at IC₂. But he cannot go to bundles on IC₃ indifference curve as his budget does not allow him to do so. So the consumer will prefer bundles on the indifference curve IC₂. So ‘E’ is the consumer’s equilibrium point.

Kerala State Board New Syllabus Plus Two Computer Application Previous Year Question Papers and Answers.

Kerala Plus Two Computer Application Model Question Papers Paper 1 with Answers

Board	SCERT
Class	Plus Two
Subject	Computer Application
Category	Plus Two Previous Year Question Papers

Time: 2 Hours
Cool off time : 15 Minutes

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Part – A

Answer all the questions from 1 to 5 carry one score each: (Scores: 5 × 1 = 5)

Question 1.
Write a C++ statement to declare an array with size 25 to accept the name of a student.
Answer:
char name[25];

Question 2.
Name the following tags:

1. To include a button in HTML
2. To partition the browser window

Answer:

1. <input type=”button”>
2. <frameset>

Question 3.
Define Web Hosting
Answer:
Buying or renting storage space to store website in a web server and provide service(made available 24 × 7) to all the computers connected to the Internet. This is called web hosting.

Question 4.
Define BPR.
Answer:
Business Process Re-engineering: In general BPR is the series of activities such as rethinking and redesign the business process to enhance the enterprise’s performance such as reducing the cost(expenses), improve the quality, prompt, and speed(time-bound) service. BPR enhances the productivity and profit of an enterprise.

Question 5.
Name the intellectual property represented by the symbols ®, ©.
Answer:
® – Registered Trade Mark
© – Copy Right

Part – B

Answer any nine questions from 6 to 16 carry 2 scores each: (Scores : 9 × 2 = 18)

Question 6.
Define built-in functions. Give two examples.
Answer:
Some functions that are already available in C++ are called pre-defined or built-in functions.

• strlen() – to find the number of characters in a string(i.e. string length).
• strcpy() – It is used to copy the second string into the first string.
• strcat() – It is used to concatenate the second string into the first one.
• strcmp() – It is used to compare two strings and returns an integer.

Question 7.
Write the use of the following in HTML:
(a) <A Href=”http://www.dhsekerala.gov.in>DHSE</A>.
(b) <EMBEDsrc=song1.mp3></EMBED>
Answer:
(a) To link dhse portal. This is an example for external linking.
(b) This is used to include an audio file in our web page.

Question 8.
Name the tag and attribute needed to create the following lists in HTML:

Answer:
a) <OL type=”1″>
b) <UL type=”square”>

Question 9.
Write a short note on free hosting.
Answer:
The name implies it is free of cost service and the expense is met by the advertisements. Some service providers allow limited facility such as limited storage space do not allow multimedia(audio and video) files.

A paid service website’s address is as follows
eg: www.bvmhsskalparamba.com
Usually, two types of free web hosting services as follows:
1) as a directory service.
Service provider’s website address/our website address
eg: www.facebook.com /bvm hss kalparambu

2) as a Subdomain
Our website address service providers website address
eg: bvmhsskalparamba.facebook.com

Question 10.
Write the type of web hosting that is most suitable:

1. For hosting a school website with a database.
2. For hosting a website for a firm
3. For creating a blog to share pictures and posts
4. For creating a low-cost personal website with a unique domain name.

Answer:

1. Shared Hosting
2. Dedicated Hosting
3. Free Hosting
4. VPS/Shared Hosting

Question 11.
Define the following:
(a) Field
(b) Record
Answer:
(a) Fields: the smallest unit of stored data.
eg: Regno, name, batch etc

(b) Record: Collection of related fields
eg: 101, Jose, Science

Question 12.
Write the name of any two-column constraints and their usage.
Answer:
Constraints are used to ensure database integrity.

1. Not Null – It ensures that a column can never have NULL values.
2. Unique – It ensures that no two rows have the same value in a column.
3. Primary key – Similar to unique but it can be used only once in a table.
4. Default – We can set a default value.
5. Autojncrement – This constraint is used to perform auto_increment the values in a column. That automatically generates serial numbers. Only one auto_increment column per table is allowed.

Question 13.
Define the following ERP related technologies:
(a) CRM
(b) SCM
Answer:
(a) Customer Relationship Management (CRM): As we know the customer is the king of the market. The existence of a company mainly the customers. CRM consists of programs to enhance the customer’s relationship with the company.

(b) Supply Chain Management (SCM): This is deals with moving raw materials from suppliers to the company as well as finished goods from the company to customers. The activities include are inventory(raw materials, work in progress and finished goods) management, warehouse management, transportation management, etc.

Question 14.
Write a short note on SAP.
Answer:
SAP stands for Systems, Applications, and Products for data processing. It is a German MNCin Walldorf and founded in 1972. Earlier they developed ERP packages for large MNC. But nowadays they developed for small scale industries also.

Question 15.
Define the following terms:
(a) Trademark
(b) Copyright
Answer:
(a) Trademark: This is a unique, simple, and memorable sign to promote a brand and hence increase the business and goodwill of a company. It must be registered. The period of registration is for 10 years and can be renewed. The registered trademark under Controller General of Patents Design and Trademarks cannot use or copy by anybody else.

(b) Copyright: The trademark is ©, copyright is the property right that arises automatically when a person creates a new work on his own, and by Law, it prevents the others from the unauthorized or intentional copying of this without the permission of the creator for 60 years after the death of the author.

Question 16.
Name the following:

1. Satellite-based Navigation system
2. Service used to send messages with Multimedia content
3. Packet oriented mobile data service on GSM.
4. Smart card technology used only in GSM phone systems.

Answer:

1. GPS
2. MMS
3. GPRS
4. SIM

Part – C

Answer any nine questions from 17 to 27 carry 3 scores each: (Scores: 9 × 3 = 27)

Question 17.
Define Jump Statements. Explain any two.
Answer:
The execution of a program is sequential but we can change this sequential manner by using jump statements. The jump statements are

1. goto statements: By using goto we can transfer the control anywhere in the program without any condition. The syntax is the goto label;
2. break statement: It is used to skip over a part of the code i.e. we can premature exit from a loop such as while, do-while, for, or switch.
3. continue statement: It bypasses one iteration of the loop.
4. exit(0) function: It is used to terminate the program. For this, the header file cstdlib must be included.

Question 18.
Explain about nested loops.
Answer:
Nested Loop: A loop contains another loop completely then it is called a nested loop.
Eg.

#include<iostream>
using namespace std;
int main()
{
int i, j;
for(i=1; i<5; i++)
{
for(j=1; j<=i; j++)
cout<<"*";
cout<<endl;
}
}

Question 19.
Compare call-by-value and call-by-reference methods for calling functions.
Answer:

Call by Value	Call by Reference
Ordinary variables are used as formal parameter	Reference variables are used as formal parameters
A copy of the original value is passed	The original value is passed
Any change made by the function will not affect the original value	Any change made by the function will affect the original value
Separate memory location is needed for actual and formal variables	Memory of actual arguments is shared by formal arguments.

Question 20.
Differentiate between local and global variables.
Answer:

Local Variable	Global Variable
1. Declared inside a block.	1. Declared outside of all blocks.
2. It cannot be used in any other block.	2. It can be used anywhere in the program.
3. Memory is allocated when the block is active.	3. Memory is allocated when the program begins.
4. Memory is de-allocated when the block is completed.	4. Memory is de-allocated when the program terminates.

Question 21.
Name any two attributes of the following tags:
(a) <HTML>
(b) <MARQUEE>
(c) <FONT>
Answer:
(a) Attributes of <HTML> are dir(direction ltr or rtl) and Language

(b) Attributes of <MARQUEE> (Any Two)
Height – Sets the height of the Marquee text

Width – Sets the width of the Marquee text

Direction – Specifies the scrolling direction of the text such as up, down, left or right

Behavior – Specifies the type such as Scroll, Slide(Scroll and stop) and alternate(to and fro).
<marquee behavior-“scroll”
scrollamount=”100″>hello</marquee>
<marquee behavior-“slide”
scrollamount=”100″>hello</marquee>
<marquee behavior-“alternate”
scrollamount=”100″>hello</marquee>

Scrolldelay – Specifies the time delay in seconds between each jump.

scrollamount – Specifies the speed of the text
loop – This specifies the number of times the marquee scroll. Default infinite.

bgcolor – Specifies the back ground colour.

Hspace – Specifies horizontal space around the marquee

Vspace – Specifies vertical space around the marquee

(c) <Font> used to specify the font characteristics. Its attributes are size, face, and color.

Question 22.
Name the three essential tags for creating a table in HTML. Write the purpose of each tag.
Answer:

• <Table> is used to create a table.
• <TR> is used to create a row.
• <TH> is used to create heading cells.
• <TD> is used to create data cells.

Question 23.
Rewrite the following C++ code in JavaScript:

void length ()
{
char str[ ]="WELCOME";
cout<<strl;
}

Answer:

<html>
<head>
<Script Language="JavaScript">
function lengths()
{
var str1;
str1="WELCOME";
document.write(str1);
}
</script>
</head>
<body>
<center>
<form name="frm">
<input type="button" value="print" onClick="lengths()">
</form>
</center>
</body>
</html>

Question 24.
Explain any three operators used in Relational algebra.
Answer:
Relational Algebra(Any Three)

1. Select operation(s): It is used to select tuples in a relation that satisfies a condition.
2. Project Operation (p): It is used to select certain columns while discards some other columns.
3. Cartesian Product (X): All possible combinations of tuples from two relations.
4. Union Operation (E): All tuples appearing in either or both of two relations.
5. Intersection operation (Q): All tuples appearing in both relations.
6. Set difference operation (-): All tuples appearing in the first relation and not in the second.

Question 25.
Explain any three advantages of DBMS.
Answer:
Advantages of DBMS (Any Three)
1. Data Redundancy: It means duplication of data. DBMS eliminates redundancy. DBMS does not store more than one copy of the same data.

2. Inconsistency can be avoided: If redundancy occurs there is a chance to inconsistency. If redundancy is removed then inconsistency cannot occur.

3. Data can be shared: The data stored in the database can be shared by the users or programs.

4. Standards can be enforced – The data in the database follows some standards.
Eg: a field ‘Name’ should have 40 characters long. Some standards are ANSI, ISO, etc.

5. Security restrictions can be applied – The data is of great value so it must be kept secure and private. Data security means the protection of data against accidental or intentional disclosure or unauthorized destruction or modification by an unauthorized person.

6. Integrity can be maintained: It ensures that the data is to be entered in the database is correct.

7. Efficient data access: It stored a huge amount of data efficiently and can be retrieved whenever a need arise.

8. Crash recovery: Sometimes all or a portion of the data is lost when a system crashes. A good DBMS helps to recover data after the system crashed.

Question 26.
Define the following:
(a) DML
(b) DDL
(c) DCL
Answer:
(a) DML – DML means Data Manipulation Language.
It is used to insert records into a table, modify the records of a table, delete the records of a table, and retrieve the records from a table.DML commands are select, insert, delete, and update.

(b) DDL – DDL means Data Definition Language.
It is used to create the structure of a table, modify the structure of a table, and delete the structure of a table. DDL commands are created, alter and drop

(c) DCL – DCL means Data Control Language.
It is used to control access to the database. Commands are Grant, Revoke, etc

Question 27.
Write the result of the following:
(a) ALTER TABLE <table name>
Drop <column name>
(b) DELETE FROM <table name>
(c) DROP TABLE <table name>
Answer:
(a) This command is used to delete a column from a table.
(b) This command is used to delete all the records from a table.
(c) This command is used to delete a table from the memory.

Part – D

Answer any two questions from 28 to 30 with 5 scores each: (Scores: 2 × 5 = 10)

Question 28.
Consider the following C++ code

int main()
{
char str[20];
cout<<"Enter a String";
cin>>str;
puts(str);
return 0;
}

1. Write the value of str if the string ‘HELLO WORLD’ is input to the code. Justify.
2. Write the amount of memory allocated for storing the array str. Give reason.
3. Write an alternative we can use to input string in place of cin

Answer:

1. The output is “HELLO”.Here the white space after HELLO is treated as the delimiter hence the remaining(“WORLD”) will be truncated.
2. 20 bytes of memory is allocated for storing the array str.
3. gets() or getline() can be used to input string for accepting white spaces.

Question 29.
In HTML
(a) Differentiate client-side script and server-side script
(b) Name the tag and its attribute used to include a script in a web page
(c) Name any two server-side scripting language.
Answer:
(a)

Client-Side Scripting	Server Side Scripting
The script is copied to the client browser	The script is copied to the webserver
Executed by the client	Executed by the server and result is get back to the browser window
Used for Client level validation	Connect to the database in the server
It is possible to block by the user	Cannot possible
Client-side scripts depend on the type and version of the browser	It does not depend on the type and version of the browser

(b) <SCRIPT Language=”JavaScript”>
(c) ASP, JSP, PHP, etc.

Question 30.
In JavaScript:
(a) Explain any three types of operators used.
(b) Describe any two datatypes used.
Answer:
(a) Operators in JavaScript: Operators are the symbols used to perform an operation

1. Arithmetic operators: It is a binary operator. It is used to perform addition(+), subtraction(-), division(/), multiplication(*), modulus(%-gives the remainder)
2. Assignment operator: If a = 10 and b = 3 then a = b. This statement sets the value of a and b are the same, i.e. it sets a to 3.
3. Logical operators: Here AND(&&), OR(||) are binary operators and NOT(!) is a unary operator. It is used to combine relational operations and it gives either true or false

b) Data types in JavaScript: Unlike C++ it uses only three basic data types

1. Number: Any number(whole or fractional) with or without a sign.
   Eg: +1977, -38.0003, -100, 3.14157,etc
2. String: It is a combination of characters enclosed within double-quotes.
   Eg: “BVM”, “jobi_cg@rediffmail.com”, etc
3. Boolean: We can store either true or false. It is case sensitive. That means can’t use TRUE OR FALSE

Kerala State Board New Syllabus Plus Two Computer Application Previous Year Question Papers and Answers.

Kerala Plus Two Computer Application Previous Year Question Paper March 2017 with Answers

Board	SCERT
Class	Plus Two
Subject	Computer Application
Category	Plus Two Previous Year Question Papers

Time: 2½ Hours
Cool off time : 15 Minutes

General Instructions to Candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2½ hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Question 1.
Which among the following is equivalent to the statement series b = a, a = a + 1?
a. b + = a
b. b = a + +
c. b = + + a
d. b + = a + b

Question 2.
A designed website has to be uploaded into a………to make it available to the internet users all over the world.

Question 3.
A 4G mobile network uses…………
a. CDMA
b. WCDMA
c. OFDMA
d. None of these

Question 4.
Write the output of the following C++ code segment.
char S1 [10] = “Computer”;
char S2 [ 15] = “Applications”;
strcp (S1, S2);
cout<<S2;

Question 5.

Question 6.
Answer anyone from 6 (a) or 6 (b).
a. Compare static and dynamic web pages.
OR
b. Compare client-side scripting and server-side scripting languages.

Question 7.
Answer anyone from 7 (a) or 7 (b).
a. Amita wanted to get the name ‘www.smartproducts.com’ for her newly designed website. How it is possible?
OR
b. Ajith created a website using the software ‘Joomla’. What is the peculiarity of this software and write any four advantages of using this software?

Question 8.
Is it possible to combine SELECT and PROJECT operations of relational algebra into a single statement? Explain with an example.

Question 9.
Write a short note on the Android operating system.

Question 10.
What is copyright? How does it differ from patent?

Question 11.
In RDBMS a relation contains 10 rows and 5 columns. What is the degree of relation?

Question 12.
What is an external JavaScript file? Write the advantages of using an external Java-Script file.

Question 13.
Explain the different levels of data abstraction in DBMS.

Question 14
is an SQL data type which is used to represent a variable-length string.

Question 15.
A statement in a loop forces the termination of that loop.

Question 16
is a server that acts as a bridge between the merchant server and the bank server.

Question 17.
Write a C++ initialization statement to initialize an integer array name ‘MARK’ with the values 70, 80, 85, 90.

Question 18.
Write a C++ program to input 10 numbers into an integer array and find the sum of numbers which are an exact multiple of 5.

Question 19.
Explain two stream functions for input operation for example.

Question 20.
The structure of the table ‘EMPLOYEE’ is given below.
Empcode            Numeric
Empname          String
Basicpay             Numeric
DA                        Numeric
Grosspay             Numeric
Write SQL statement for the following:
a. Insert record into the table.
b. Update DA with 60% basic pay.
c. Display the details of employees whose basic pay is greater than 20,000.
d. Rename the table EMPLOYEE to EMP DETAILS.

Question 21.
Write the complete HTML tag that links the text “PSC” to the website www.keralapsc.org.

Question 22.
Explain nesting of framesets with an example.

Question 23.
Every web browser has default colours to display text and hyperlink. How can we change this default color?

Question 24.
Write the HTML code to create the following table.

Question 25.
Answer anyone from 25(a) or 25(b).
a. Explain the importance of BPR in ERP implementation.
OR
b. Selection of ERP package is very crucial in the implementation of an ERP system. Give a short note on any four popular ERP packages.

Question 26.
Develop a webpage to display the following screen:

The user can enter a name in the textbox. On checking the ‘show’ button the name entered in the textbox should be changed into uppercase. Include JavaScript code in the HTML for doing this.

Question 27.
“ Initialized formal arguments are called default arguments”. Using this concept write the function prototype and definition of a user-defined function Sum () which accepts two or three integer numbers and returns their sum.

Kerala State Board New Syllabus Plus Two Computer Application Previous Year Question Papers and Answers.

Kerala Plus Two Computer Application Previous Year Question Paper March 2018 with Answers

Board	SCERT
Class	Plus Two
Subject	Computer Application
Category	Plus Two Previous Year Question Papers

Time: 2 Hours
Cool off time : 15 Minutes

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Questions 1 – 5 Carry 1 Score each. Answer all questions. (5 × 1 = 5)

Question 1.
Name any two data type modifiers in C++
Answer:
short, long, signed, and unsigned (Any 2)

Question 2.
Define the term ‘array traversal’.
Answer:
Traversal: All the elements of an array is visited and processed is called traversal

Question 3.
Which tag is used for hyperlinking in HTML?
Answer:
<A> tag

Question 4.
What is SCM?
Answer:
Supply Chain Management (SCM): This is deals with moving raw materials from suppliers to the company as well as finished goods from the company to customers.

Question 5.
Write the full form of OFDMA.
Answer:
OFDMA(Orthogonal Frequency Division Multiple Access)

Questions 6 to 16 carry 2 score each. Answer any 9 questions. (9 × 2 = 18)

Question 6.
Write a C++ statement to declare and initialise an array in the following situations.
a) An array of 5 unit prices 18.50, 27.5, 19.00, 12.50, 10.75
b) An array with the letters ‘WELCOME’.
Answer:
float price[]={18.50, 27.5, 19.00, 12.50, 10.75};

Question 7.
Write the output of the following C++code
1) char S1[10], S2[10]=”welcome’;
strcpy(S1, S2);
cout<<S1;
2) char S1[20]=”welcome”;
char S2[20]=”toC++”;
strcat(S1, S2);
cout<<S1;
Answer:
1) welcome
2) welcome to C++

Question 8.
Differentiate ‘static’ and ‘dynamic’ webpages.
Answer:

Static web pages	Dynamic web pages
Content and layout is fixed	Content and layout is changed frequently
Never use database	Data base is used
Run by browser	It runs on the server and result get back to the client (browser)
Easy to develop	Not at all easy

Question 9.
Name any two attributes of <html>tag with the use
Answer:
Attributes of <HTML> are dir(direction ltr or rtl) and Language

Question 10.
What is the use of FTP client software?
Answer:
By using FTP client s/w we can transfer(upload) the files from our computer to the web server by using the ‘drag and drop’ method. The popular FTP client software is FileZilla, CuteFTP, SmartFTP, etc.

Question 11.
Define the following terms in DBMS

1. Cardinality
2. Domain

Answer:

1. Cardinality – The number of rows in a table is the cardinality.
2. Domain – The pool of possible values from which actual column values are drawn.

Question 12.
Categorise the following SQL commands into DDL and DML
[CREATE, INSERT, ALTER, UPDATE]
Answer:

DDL	DML
CREATE ALTER	INSERT UPDATE

Question 13.
What is BPR?
Answer:
Business Process Re-engineering: In general BPR is the series of activities such as rethinking and redesign the business process to enhance the enterprise’s performance such as reducing the cost (expenses), improve the quality, prompt, and speed(time-bound) service.
BPR enhances the productivity and profit of an enterprise.

Question 14.
Explain the role of “System testing” in the implementation of ERP.
Answer:
Testing: This phase is very important. It determines whether the system produces a proper results. Errors in design and logic are identified.

Question 15.
What is the use of RFID?
Answer:
RFID(Radio Frequency Identification) tag and the reader. It is like the bar code. The RFID tag contains all the details of a product and it consists of a combination of a transmitter and a receiver. This tag is used in Vehicles as a prepaid tag and makes the payments easier in Toll booths. Similarly, it is useful to takeoff the Census of wild animals also.

Question 16.
Compare GPRS and EDGE technologies.
Answer:
GPRS (General Packet Radio Services): It is a packet-oriented mobile data service on the 2G on GSM. GPRS was originally standardized by European Telecommunications Standards Institute (ETSI) GPRS usage is typically charged based on the volume of data transferred. Usage above the bundle cap is either charged per megabyte or disallowed.

EDGE(Enhanced Data rates for GSM Evolution): It is three times faster than GPRS. It is used for voice communication as well as an internet connection.

Questions 17 to 27 carry 3 scores each. Answer any 9 questions. (9 × 3 = 27)

Question 17.
Write the output of the following code segment in C++.

int sum=0;
int a[]={1, 2, 3, 4, 5};
for(int i=0; i<5; i=i+2)
sum=sum+a[i];
cout<<sum;

Answer:
The output is 9. (The sum of 1, 3, and 5).

Question 18.
Explain the use of the following built-in functions in C++.
(i) abs()
(ii) sqrt()
(iii) pow()
Answer:
i) abs(): It returns the absolute value of the given number.
eg. abs(-23) returns 23.

ii) sqrt(): It returns the square root of the given number.
eg. sqrt(16) returns 4.

iii) pow(): It is used to find the power of a given number.
eg. pow(5, 2) returns 25.

Question 19.
Compare call by value and call by reference method in C++.
Answer:

Call by Value	Call by Reference
1. Ordinary variables are used as a formal parameters.	1. Reference variables are used as formal parameters.
2. A copy of the original value is passed	2. The original value is passed
3. Any change made by the function will not affect the original value.	3. Any change made by the function will affect the original value.
4. Separate memory location is needed for actual and formal variables.	4. Memory of actual arguments is shared by formal arguments.

Question 20.
Write a short note on “Java Server Pages”.
Answer:
Java Server Pages (JSP)

1. JSP introduced by Sun Micro System
2. JSP stands for Java Server Page.
3. An JSP file uses .jsp extension
4. It is platform-independent
5. It uses Apache Tomcat webserver
6. JSP binds with Servlets (Servlets are Java codes run in Server to serve the client requests).

Question 21.
Name the three attribute of <MARQUEE> with its use
Answer:
Attributes of <MARQUEE> (Any Three)

Height – Sets the height of the Marquee text

Width – Sets the width of the Marquee text

Direction – Specifies the scrolling direction of the text such as up, down, left or right

Behavior – Specifies the type such as Scroll,
Slide(Scroll and stop) and alternate(to and fro).
<marquee behavior=”scroll”
scrollamount=”100″>hello</marquee>
<marquee behavior=”slide”
scrollamount=”100″>hello</manquee>
<marquee behavior=”alternate”
scrollamount=”100″>hello</manquee>

Scrolldelay – Specifies the time delay in seconds between each jump.

scrollamount – Specifies the speed of the text

loop – This specifies the number of times the marquee scroll. Default infinite.

bgcolor – Specifies the background colour.

Hspace – Specifies horizontal space around the marquee

Vspace – Specifies vertical space around the marquee

Question 22.
Consider the following JavaScript Code.

<SCRIPT language="JavaScript">
var i, s;
for (i=1; i<10; i++)
{
s=i*i;
document.write(s);
document.write("<BR>");
}
</SCRIPT>

a) What will be the output of the program.
b) What is the use of <SCRIPT> tag
c) Write the output statement used in the above code.
Answer:
a) The Output is
1
4
9
16
25
36
49
64
81
100
b) <SCRIPT> tag is used to write scripts
c) document.write(s) is the output statement used in the code.

Question 23.
Explain three types of “Web hosting”.
Answer:
Types of web hosting
Various types of web hosting services are available. We can choose the web hosting services according to our needs depends upon the storage space needed for hosting, the number of visitors expected to visit, etc.

1) Shared Hosting: This type of hosting shares resources, like memory, disk space, and CPU hence the name shared. Several websites share the same server. This is suitable for small websites that have less traffic and it is not suitable for large websites that have large bandwidth, large storage space, and have a large volume of traffic.
Eg: Shared hosting is very similar to living in an Apartment(Villas) complex. All residents are in the same location and must share the available resources(Car parking area, Swimming pool, Gymnasium, playground, etc) with everyone.

2) Dedicated Hosting: A web server and its resources are exclusively for one website that has a large volume of traffic means a large volume of requests by the visitors. Some Govt, departments, or large organizations require uninterrupted services for that round the clock power supply is needed. It is too expensive but it is more reliable and provides good service to the public.
Eg: It is similar to living in an Our own house. All the resources in your house are only for you. No one else’s account resides on the computer and would not be capable of tapping into your resources.

3) Virtual Private Server (VPS): A VPS is a virtual machine sold as a service by an Internet hosting Service. A VPS runs its own copy of an OS(Operating System) and customers have super level access to that OS instance, so they can install almost any s/w that runs on that OS. This type is suitable for websites that require more features than shared hosting but less features than dedicated hosting.
Eg: It is similar to owning a Condo

Question 24.
Distinguish Alternate key and foreign key.
Answer:
Alternate key – A candidate key other than the primary key.
Foreign key – A single attribute or a set of attributes, which is a candidate key in another

Question 25.
Explain the different levels of data abstraction in DBMS.
Answer:
Levels of Database Abstraction:

1. Physical Level (Lowest Level) – It describes how the data is actually stored in the storage medium.
2. Logical Level (Next Higher Level) – It describes what data are stored in the database.
3. View Level (Highest level) – It is closest to the users. It is concerned with the way in which the individual users viewthe data.

Question 26.
Explain any three-column constraints in SQL.
Answer:
Constraints are used to ensure database integrity.

1. Not Null – It ensures that a column can never have NULL values.
2. Unique – It ensures that no two rows have the same value in a column.
3. Primary key – Similar to unique but it can be used only once in a table.
4. Default- We can set a default value.
5. Autojncrement – This constraint is used to perform autoincrement of the values in a column. That automatically generates serial numbers. Only one autoincrement column per table is allowed.

Question 27.
Consider the table ITEM with the field Item code, Item name, Price, Write SQL queries.

1. To Display the maximum and minimum price of items.
2. To remove all records where priced < 1000
3. To display the number of records in the table.

Answer:

1. select max(Price), min(Price) from ITEM;
2. delete from ITEM where Priced<1000;
3. select count(*) from ITEM;

Questions from 28 – 30 carry 5 scores. Answer any 2 questions. (5 × 2 = 10)

Question 28.
Consider the C++ program to find the sum of the first 10 natural numbers and answer the following questions.

#include<iostream>
using namespace std;
int main()
{
int n, sum=0;
for(int i=1; i<=10; i++)
sum=sum+i;
cout<<"sum is="<<sum
}

a) Rewrite the above program using do-while loop.
b) What will be the output of the above program if we replace i++ with i=i+2 in the for loop
c) What is the purpose of #include<iostream>
Answer:

a) #include<iostream>
using namespace std;
int main()
{
int i=1 ,sum=0;
do
sum=sum+i; i++;
}
while(i<=10);
cout<<"sum is="<<sum;
}

b) The output is 25(Sum of odd numbers less than 10).
c) This statement is used to include the header file iostream in our program. This header file helps to include i/o operations on characters and strings in the programs.

Question 29.
a) Name the HTML tag to create checkbox, textbox, and radio box.
b) Write an HTML statement to create the textbox with a maximum length of 25 and size of 30.
c) Write an HTML statement to create a submit button with the caption “login”.
Answer:
a) checkbox-<inputtype=”checkbox>
text box-:<input type=”text”>
radio box-:<inputtype=”radio”>

b) <input type=”text” name-“Firstname” size=30 maxlength=”25″>

c) <input type=”button” value = “Login” onClick=”lengths()”>

Question 30.
Consider the javascript code to display the square of the first 10 numbers using the code answer the following.

<SCRIPT language="Javascript">
var i, s;
for (i=1; i<10; i++)
{
s=i*i;
document.write(s);
document.write("<BR>");
}
</SCRIPT>

a) Rewrite the above program using a while loop.
b) Modify the above program to print the first 10 even numbers.
Answer:

a) <SCRIPT language="Javascript">
var i, s; i=1;
while(i<=10)
{
s=i*i;
i++;
document.write(s);
document.write("<BR>");
}
</SCRIPT>

b) <SCRIPT language="Javascript">
var i;
for(i=2; i<=20; i+=2)
{
document.write(i);
document.write("<BR>");
}
</SCRIPT>