Category: Class 12

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Computer Science Guide Pdf Chapter 1 Function Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Computer Science Solutions Chapter 1 Function

12th Computer Science Guide Function Text Book Questions and Answers

I. Choose the best answer (I Marks)

Question 1.
The small sections of code that are used to perform a particular task is called
a) Subroutines
b) Files
c) Pseudo code
d) Modules
Answer:
a) Subroutines

Question 2.
Which of the following is a unit of code that is often defined within a greater code structure?
a) Subroutines
b) Function
c) Files
d) Modules
Answer:
b) Function

Question 3.
Which of the following is a distinct syntactic block?
a) Subroutines
b) Function
c) Definition
d) Modules
Answer:
c) Definition

Question 4.
The variables in a function definition are called as
a) Subroutines
b) Function
c) Definition
d) Parameters
Answer:
d) Parameters

Question 5.
The values which are passed to a function definition are called
a) Arguments
b) Subroutines
c) Function
d) Definition
Answer:
a) Arguments

Question 6.
Which of the following are mandatory to write the type annotations in the function definition
a) Curly braces
b) Parentheses
c) Square brackets
d) indentations
Answer:
b) Parentheses

Question 7.
Which of the following defines what an object can do?
a) Operating System
b) Compiler
c) Interface
d) Interpreter
Answer:
c) Interface

Question 8.
Which of the following carries out the instructions defined in the interface?
a) Operating System
b) Compiler
c) Implementation
d) Interpreter
Answer:
c) Implementation

Question 9.
The functions which will give exact result when same arguments are passed are called
a) Impure functions
b) Partial Functions
c) Dynamic Functions
d) Pure functions
Answer:
d) Pure functions

Question 10.
The functions which cause side effects to the arguments passed are called
a) Impure functions
b) Partial Functions
c) Dynamic Functions
d) Pure functions
Answer:
a) Impure functions

II. Answer the following questions (2 Marks)

Question 1.
What is a subroutine?
Answer:
Subroutines are the basic building blocks of computer programs. Subroutines are small sections of code that are used to perform a particular task that can be used repeatedly. In Programming languages, these subroutines are called Functions.

Question 2.
Define Function with respect to the Programming language.
Answer:

• A function is a unit of code that is often defined within a greater code structure.
• A function works on many kinds of inputs like variants, expressions and produces a concrete output.

Question 3.
Write the inference you get from X:=(78).
Answer:
Value 78 is bound to the name X.

Question 4.
Differentiate Interface and Implementation
Answer:

Question 5.
Which of the following is a normal function definition and which is a recursive function definition?
Answer:
(I) Let Recursive sum x y:
return x + y

(II) let disp:
print ‘welcome’

(III) let Recursive sum num:
if (num! = 0) then return num + sum (num – 1) else
return num

1. Recursive function
2. Normal function
3. Recursive function

III. Answer the following questions (3 Marks)

Question 1.
Mention the characteristics of Interface.
Answer:

• The class template specifies the interfaces to enable an object to be created and operated properly.
• An object’s attributes and behaviour is controlled by sending functions to the object.

Question 2.
Why strlen() is called pure function?
Answer:
strlen (s) is called each time and strlen needs to iterate over the whole of ‘s’. If the compiler is smart enough to work out that strlen is a pure function and that ‘s’ is not updated in the lbop, then it can remove the redundant extra calls to strlen and make the loop to execute only one time. This function reads external memory but does not change it, and the value returned derives from the external memory accessed.

Question 3.
What is the side effect of impure function? Give example.
Answer:

• Impure function has side effects when it has observable interaction with the outside world.
• The variables used inside the function may cause side effects through the functions which are not passed with any arguments. In such cases the function is called impure function.
• When a function depends on variables or functions outside of its definition block, you can never be sure that the function will behave the same every time it’s called.
• For example, the mathematical function random () will give different outputs for the same function call
  let random number
  let a:= random()
  if a> 10 then
  return: a
  else
  return 10
• Here the function random is impure as it not sure what the will be the result when we call
  the function

Question 4.
Differentiate pure and impure functions.
Answer:

Question 5.
What happens if you modify a variable outside the function? Give an example
Answer:
When a function depends on variables or functions outside of its definition block, you can never be sure that the function will behave the same every time it’s called.
For example let y: = 0
(int) inc (int) x
y: = y + x;
return (y)
In the above example the value of y get changed inside the function defintion due to which the result will change each time. The side effect of the inc ( ) function is it is changing the data ‘ of the external visible variable ‘y’.

IV. Answer the following questions (5 Marks)

Question 1.
What are called Parameters and Write a note on
1. Parameter Without Type
2. Parameter With Type
Answer:
Parameter:
Parameter is the variables in a function definition
Arguments:
Arguments are the values which are passed to a function definition
Parameters passing are of two types namely

1. Parameter without Type
2. Parameter with Type

1. Parameter without Type:
Let us see an example of a function definition.
(requires: b > =0 )
(returns: a to the power of b)
let rec pow a b:=
if b=0 then 1
else a pow a*(b-l)

• In the above function definition variable ‘b’ is the parameter and the value which is passed to the variable ‘b’ is the argument.
• The precondition (requires) and postcondition (returns) of the function is given.
• Note we have not mentioned any types (data types).
• Some language computer solves this type (data type) inference problem algorithmically, but some require the type to be mentioned.

2. Parameter with Type:
Now let us write the same function definition with types for some reason:
(requires: b > 0 )
(returns: a to the power of b )
let rec pow (a: int) (b: int): int: =
if b=0 then 1 else a * pow b (a-1)

• When we write the type annotations for ‘a’ and ‘b’ the parentheses are mandatory.
• There are times we may want to explicitly write down types.
• This useful on times when you get a type error from the compiler that doesn’t make sense.
• Explicitly annotating the types can help with debugging such an error message.

Question 2.
Identify in the following program
Answer:
let rec gcd a b : =
if b < > 0 then gcd b (a mod b) else return a
(I) Name of the function
gcd

(II) Identify the statement which tells it is a recursive function
let rec

(III) Name of the argument variable
a, b

(IV) Statement which invokes the function recursively
gcd b(a mod b) [when b < > 0]

(V) Statement which terminates the recursion
return a (when b becomes 0).

Question 3.
Explain with example Pure and impure functions.
Answer:
Pure functions:

• Pure functions are functions which will give exact result when the same arguments are passed.
• For example, the mathematical function sin (0) always results 0.
  Let us see an example.
  let square x
  return: x * x
• The above function square is a pure function because it will not give different results for the same input.

Impure functions:

• The variables used inside the function may cause side effects through the functions which are not passed with any arguments. In such cases, the function is called the impure function.
• When a function depends on variables or functions outside of its definition block, we can never be sure that the function will behave the same every time it’s called.
• For example, the mathematical functions random () will give different outputs for the same function call.
  let Random number
  let a := random() if a > 10 then
  return: a else
  return: 10
• Here the function Random is impure as it is not sure what will be the result when we call the function.

Question 4.
Explain with an example interface and implementation
Answer:
Interface Vs Implementation:
An interface is a set of actions that an object can do. For example, when you press a light switch, the light goes on, you may not have cared how it splashed the light. In an Object-Oriented Programming language, an Interface is a description of all functions that a class must have in order to be a new interface.

In our example, anything that “ACTS LIKE” a light, should have to function definitions like turn on ( ) and a turn off ( ). The purpose of interfaces is to allow the computer to enforce the properties of the class of TYPE T (whatever the interface is) must have functions called X, Y, Z, etc.

A class declaration combines the external interface (its local state) with an implementation of that interface (the code that carries out the behaviour). An object is an instance created from the class. The interface defines an object’s visibility to the outside world.

Characteristics of interface

• The class template specifies the interfaces to enable an object to be created and operated properly.
• An object’s attributes and behavior is controlled by sending functions to the object.

Example:

• • The person who drives the car doesn’t care about the internal working.
• To increase the speed of the car he just presses the accelerator to get the desired behaviour.
• Here the accelerator is the interface between the driver (the calling / invoking object) and the engine (the called object).
• In this case, the function call would be Speed (70): This is the interface.
• Internally, the engine of the car is doing all the things.
• It’s where fuel, air, pressure, and electricity come together to create the power to move the vehicle.
  All of these actions are separated from the driver, who just wants to go faster. Thus we separate interface from implementation.

12th Computer Science Guide Function Additional Questions and Answers

I. Choose the best answer (1 Mark)

Question 1.
……………………… are expressed using statements of a programming language.
(a) Algorithm
(b) Procedure
(c) Specification
(d) Abstraction
Answer:
(a) Algorithm

Question 2.
The recursive function is defined using the keyword
a) let
b) requires
c) name
d) let rec
Answer:
d) let rec

Question 3.
A function definition which calls itself is called
a) user-defined function
b) recursive function
c) built-in function
d) derived function
Answer:
b) recursive function

Question 4.
Find the correct statement from the following.
(a) a : = (24) has an expression
(b) (24) is an expression
Answer:
(a) a : = (24) has an expression

Question 5.
strlen() is an example of ………………. function.
a) pure
b) impure
c) user-defined
d) recursive
Answer:
a) pure

Question 6.
Evaluation of ………………. functions does not cause any side effects to its output?
a) Impure
b) built-in
c) Recursive
d) pure
Answer:
d) pure

Question 7.
The name of the function in let rec pow ab : = is …………………………
(a) Let
(b) Rec
(c) Pow
(d) a b
Answer:
(c) Pow

Question 8.
An …………….. is an instance created from the class.
a) Interface
b) object
c) member
d) function
Answer:
b) object

Question 9.
In object-oriented programs …………… are the interface.
a) classes
b) object
c) function
d) implementation
Answer:
a) classes

Question 10.
In b = 0, = is ……………………….. operator
(a) Assignment
(b) Equality
(c) Logical
(d) Not equal
Answer:
(b) Equality

II. Answer the following questions (2 and 3 Marks)

Question 1.
What are the two types of parameter passing?
Answer:

1. Parameter without type
2. Parameter with type

Question 2.
What is meant by Definition?
Answer:
Definitions are distinct syntactic blocks.

Question 3.
Write the syntax for the function definitions?
Answer:
let rec f_n a₁ a₂ … a_n : = k
f_n : Function name
a₁ … a_n – variable
rec: recursion

Question 4.
Define Argument.
Answer:
Arguments are the values which are passed to a function definition through the function definition

Question 5.
Write notes on Interface.
Answer:

• An interface is a set of actions that an object can do.
• Interface just defines what an object can do, but won’t actually do it

Question 6.
Define Implementation.
Answer:
Implementation carries out the instructions defined in the interface

Question 7.
Write notes on Pure functions.
Answer:

• Pure functions are functions which will give exact result when the same arguments are passed.
• Example: strlen(),sqrt()

Question 8.
Write notes on the Impure function.
Answer:

• The functions which cause side effects to the arguments passed are called
  Impure function.
• Example: random(), date()

Question 9.
What is a Recursive function?
Answer:
A function definition which calls itself is called a Recursive function.

Question 10.
Differentiate parameters and arguments.
Answer:

Question 11.
Give function definition for the Chameleons of Chromeland problem?
Answer:
let rec monochromatize abc : =
if a > 0 then
a, b, c : = a – 1, b – 1, c + 2
else
a: = 0, b: = 0, c: = a + b + c
return c

Question 12.
Define Object:
Answer:
An object is an instance created from the class.

III. Answer the following questions (5 Marks)

Question 1.
Explain the syntax of function definitions
Answer:

• The syntax to define functions is close to the mathematical usage.
• The definition is introduced by the keyword let, followed by the name of the function and its arguments; then the formula that computes the image of the argument is written after an = sign.
• If you want to define a recursive function: use “let rec” instead of “let”.

The syntax for function definitions:

• let rec fn al a2 … an := k
• Here the ‘fn’ is a variable indicating an identifier being used as a
  function name.
• The names ‘al’ to ‘an’ are variables indicating the identifiers used as parameters.
• The keyword ‘rec’ is required if ‘fn’ is to be a recursive function; otherwise, it may be omitted.

Question 2.
Write a short note and syntax for function types?
Answer:

• The syntax for function types
  x→→y
  x1 →→ x2→→y
  x1 →→….. →→xn→→ y
• The ‘x’ and ‘y’ are variables indicating types
• The type x →→ ‘y’ is the type of a function that gets an input of type ‘x’ and returns an output of type ‘y’ whereas xl→→ x2 →→y is a type of a function that takes two inputs, the first input is of type and the second input of type ‘xl’, and returns an output of type <y’.
• Likewise x1→→……. →→ >xn→→y has type ‘x’ as the input of n arguments and ‘y’ type as output

Question 3.
On the island, there are different types of chameleons. Whenever two different color chameleons meet they both change their colors to the third color. Suppose two types of chameleons are equal in number.
Construct an algorithm that arranges meetings between these two types so that they change their color to the third type. In the end, all should display the same color.
Answer:
let ree monochromatic a b c:=
if a > 0 then
a, b, c:= a -1, b -1, c + 2
else
a:= 0 b:= 0 c:= a + b + c
return c

HANDS-ON PRACTICE

Question 1.
Write the algorithmic function definition to find the minimum among 3 numbers.
Answer:
let min 3abc:=
if a < b then
if a < c then a else c
else
if b < c then b else c

Question 2.
Write the algorithmic recursive function definition to find the sum of ‘n ‘ natural numbers. Answer:
let rec sum num:
lf(num!=0)
then return num+sum(num-l)
else return num

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Computer Science Guide Pdf Chapter 16 Data Visualization Using Pyplot: Line Chart, Pie Chart and Bar Chart Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Computer Science Solutions Chapter 16 Data Visualization Using Pyplot: Line Chart, Pie Chart and Bar Chart

12th Computer Science Guide Data Visualization Using Pyplot: Line Chart, Pie Chart and Bar Chart Text Book Questions and Answers

I. Choose the best answer (1 Mark)

Question 1.
Which is a python package used for 2D graphics?
a) matplotlib.pyplot
b) matplotlib.pip
c) matplotlib.numpy
d) matplotlib.plt
Answer:
a) matplotlib.pyplot

Question 2.
Identify the package manager for Python packages, or modules.
a) Matplotlib
b) PIP
c) plt.show()
d) python package
Answer:
b) PIP

Question 3.
Read the following code: Identify the purpose of this code and choose the right option from the following.
C:\Users\YourName\AppData\Local\Programs\Python\Python36-32\Scripts > pip – version
a) Check if PIP is Installed
b) Install PIP
c) Download a Package
d) Check PIP version
Answer:
d) Check PIP version

Question 4.
Read the following code: Identify the purpose of this code and choose the right option from the following.
C:\Users\Your Name\AppData\Local\Programs\Python\Python36-32\Scripts > pip list
a) List installed packages
b) list command
c) Install PIP
d) packages installed
Answer:
a) List installed packages

Question 5.
To install matplotlib, the following function will be typed in your command prompt. What does “-U”represents?
Python -m pip install -U pip
a) downloading pip to the latest version
b) upgrading pip to the latest version
c) removing pip
d) upgrading matplotlib to the latest version
Answer:
b) upgrading pip to the latest version

Question 6.
Observe the output figure. Identify the coding for obtaining this output.

a) import matplotlib.pyplot as pit
plt.plot([1,2,3],[4,5,1])
plt.show()

b) import matplotlib.pyplot as pit plt.
plot([1,2],[4,5])
plt.show()

c) import matplotlib.pyplot as pit
plt.plot([2,3],[5,1])
plt.showQ

d) import matplotlib.pyplot as pit pit .plot ([1,3], [4,1 ])
Answer:
a) import matplotlib.pyplot as pit
plt.plot([1,2,3],[4,5,1])
plt.show()

Question 7.
Read the code:
a. import matplotlib.pyplot as pit
b. plt.plot(3,2)
c. plt.show()
Identify the output for the above coding

Answer:
c

Question 8.
Which key is used to run the module?
a) F6
b) F4
c) F3
d) F5
Answer:
d) F5

Question 9.
Identify the right type of chart using the following hints.
Hint 1: This chart is often used to visualize a trend in data over intervals of time.
Hint 2: The line in this type of chart is often drawn chronologically.
a) Line chart
b) Bar chart
c) Pie chart
d) Scatter plot
Answer:
a) Line chart

Question 10.
Read the statements given below. Identify the right option from the following for pie chart. Statement A : To make a pie chart with Matplotlib, we can use the plt.pie() function.
Statement B : The autopct parameter allows us to display the percentage value using the Python string formatting.
a) Statement A is correct
b) Statement B is correct
c) Both the statements are correct
d) Both the statements are wrong
Answer:
b) Statement B is correct

II Answer the following questions (2 marks)

Question 1
Define Data Visualization.
Answer:
Data Visualization is the graphical representation of information and data. The objective of Data Visualization is to communicate information visually to users. For this, data visualization uses statistical graphics. Numerical data may be encoded using dots, lines, or bars, to visually communicate a quantitative message.

Question 2.
List the general types of data visualization.
Answer:

• Charts
• Tables
• Graphs
• Maps
• Infographics
• Dashboards

Question 3.
List the types of Visualizations in Matplotlib.
Answer:
There are many types of Visualizations under Matplotlib. Some of them are:

1. Line plot
2. Scatter plot
3. Histogram
4. Box plot
5. Bar chart and
6. Pie chart

Question 4.
How will you install Matplotlib?
Answer:

• Pip is a management software for installing python packages.
• We can install matplotlib using pip.
• First of all, we need to identify whether pip is installed in your PC. If so, upgrade the pip in your system.
• To check if pip is already installed in our system, navigate our command line to the location of Python’s script directory.
• You can install the latest version of pip from our command prompt using the following command:
  Python -m pip install -U pip
• To install matplotlib, type the following in our command prompt:
  Python -m pip install -U matplotlib

Question 5.
Write the difference between the following functions: plt. plot([1,2,3,4]), plt. plot ([1,2,3,4], [14, 9,16]).
Answer:

III. Answer the following questions (3 marks)

Question 1.
Draw the output for the following data visualization plot.
import matplotlib.pyplot as plt
plt.bar([1,3,5,7,9],[5,2,7,8,2], label=”Example one”)
plt.bar([2,4,6,8,10],[8,6,2,5,6], label=:”Example two”, color=’g’)
plt.legend()
plt.xlabel(‘bar number’)
plt.ylabel(‘bar height’)
plt.title(‘Epic Graph\nAnother Line! Whoa’)
plt.show()
Output:

Question 2.
Write any three uses of data visualization.
Answer:

1. Data Visualization helps users to analyze and interpret the data easily.
2. It makes complex data understandable and usable.
3. Various Charts in Data Visualization helps to show the relationship in the data for one or more variables.

Question 3.
Write the coding for the following:
a) To check if PIP is Installed in your PC.
b) To Check the version of PIP installed in your PC.
c) To list the packages in matplotlib.
Answer:
a) To check if PIP is Installed in your PC.

1. In command prompt type pip – version.
2. If it is installed already, you will get version.
3. Command : Python – m pip install – U pip

b) To Check the version of PIP installed in your PC.
C:\ Users\ YourName\ AppData\ Local\ Programs\ Py thon\ Py thon36-32\ Scripts>
pip-version

c) To list the packages in matplotlib.
C:\ Users\ Y ou rName\ AppData\ Local\ Programs\ Py thon\ Py thon36-32\ Scripts>
pip list

Question 4.
Write the plot for the following pie chart output.
Coding:
import matplotlib. pyplot as pit
sizes = [54.2,8.3,8.3,29.2]
labels= [“playing”,”working”,”eating”,”sleeping”]
exp=(0,0,0.1,0)
pit.pie (sizes labels = labels,explode=exp,autopct=”%.If%%, shadow-True, counterclock=False,strartangle-90)
pit, axes (). set_aspect (“equal”)
pit. title (“Interesting Graph \nCheck it out”)
plt.show ()

IV. Answer the following questions (5 Marks)

Question 1.
Explain in detail the types of pyplots using Matplotlib.
Answer:
Matplotlib allows us to create different kinds of plots ranging from histograms and scatter plots to bar graphs and bar charts.

Line Chart:

• A Line Chart or Line Graph is a type of chart which displays information as a series of data points called ‘markers’ connected by straight line segments.
• A Line Chart is often used to visualize a trend in data over intervals of time – a time series – thus the line is often drawn chronologically.

Program for Line plot:
import matplotlib.pyplot as pit years = [2014, 2015, 2016, 2017, 2018] total_populations = [8939007, 8954518,, 8960387,8956741,8943721]
plt. plot (“years, total_populations)
plt. title (“Year vs Population in India”)
plt.xlabel (“Year”)
plt.ylabel (“Total Population”)
plt.showt

In this program,
Plt.titlet() →→7 specifies title to the graph
Plt.xlabelt) →→ specifies label for X-axis
Plt.ylabelO →→ specifies label for Y-axis
Output:

Bar Chart:

• A BarPlot (or Bar Chart) is one of. the most common type of plot. It shows the relationship between a numerical variable and a categorical variable.
• Bar chart represents categorical data with rectangular bars. Each bar has a height corresponds to the value it represents.
• The bars can be plotted vertically or horizontally.
• It is useful when we want to compare a given numeric value on different categories.
• To make a bar chart with Matplotlib, we can use the plt.bart) function.

Program:
import matplotlib.pyplot as pit
# Our data
labels = [“TAMIL”, “ENGLISH”, “MATHS”, “PHYSICS”, “CHEMISTRY”, “CS”]
usage = [79.8,67.3,77.8,68.4,70.2,88.5]
# Generating the y positions. Later, we’ll use them to replace them with labels. y_positions = range (len(labels))
# Creating our bar plot
plt.bar (y_positions, usage)
plt.xticks (y_positions, labels)
plt.ylabel (“RANGE”)
pit.title (“MARKS”)
plt.show()
Output:

Pie Chart:

• Pie Chart is probably one of the most common type of chart.
• It is a circular graphic which is divided into slices to illustrate numerical proportion.
• The point of a pie chart is to show the relationship of parts out of a whole.
• To make a Pie Chart with Matplotlib, we can use the plt.pie () function.
• The autopct parameter allows us to display the percentage value using the Python string formatting.

Program:
import matplotlib.pyplot as pit
sizes = [89, 80, 90,100, 75]
labels = [“Tamil”, “English”, “Maths”,
“Science”, “Social”]
plt.pie (sizes, labels = labels,
autopct = “%.2f”)
plt.axesfj.set aspect (“equal”)
plt.showt()
Output:

Question 2.
Explain the various buttons in a matplotlib window.
Answer:
Various buttons in a matplotlib window:

Home Button → The Home Button will help once you have begun navigating your chart. If you ever want to return back to the original view, you can click on this.
Forward/Back buttons → These buttons can be used like the Forward and Back buttons in your browser. You can click these to move back to the previous point you were at, or forward again.
Pan Axis → This cross-looking button allows you to click it, and then click and drag your graph around.
Zoom → The Zoom button lets you click on it, then click and drag a square that you would like to zoom into specifically. Zooming in will require a left click and drag. You can alternatively zoom out with a right click and drag.
Configure Subplots → This button allows you to configure various spacing options with your figure and plot.
Save Figure → This button will allow you to save your figure in various forms.

Question 3.
Explain the purpose of the following functions:
Answer:
a) plt.xlabel:
plt.xlabel Specifies label for X -axis
b) plt.ylabel:
plt.ylabel is used to specify label for y-axis
c) plt.title :
plt.title is used to specify title to the graph or assigns the plot title.
d) plt.legend():
plt.legend() is used to invoke the default legend with plt
e) plt.show():
plhshowQ is used to display the plot.

12th Computer Science Guide Data Visualization Using Pyplot: Line Chart, Pie Chart and Bar Chart Additional Questions and Answers

I. Choose the best answer (1 Mark)

Question 1.
………………. button is used to click and drag a graph around.
a) pan axis
b) home
c) zoom
d) drag
Answer:
a) pan axis

Question 2.
………………. charts display information as series of data points.
a) Bar
b) Pie
c) Line
d) Histogram
Answer:
c) Line

Question 3.
The representation of information in a graphic format is called …………………………
(a) chart
(b) graphics
(c) Infographics
(d) graphs
Answer:
c) Infographics

Question 4.
……………….refers to a graphical representation that displays data by way of bars to show the frequency of numerical data.
a) Bar chart
b) Line graph
c) Pie chart
d) Histogram
Answer:
d) Histogram

Question 5.
……………….represents the frequency distribution of continuous variables.
a) Bar chart
b) Line graph
c) Pie chart
d) Histogram
Answer:
d) Histogram

Question 6.
Find the Incorrect match from the following.
(a) Scatter plot – collection of points
(b) line charts – markers
(c) Box plot – Boxes
Answer:
(c) Box plot – Boxes

Question 7.
Which of the following plot we cannot rearrange the blocks from highest to lowest?
a) Line
b) Bar chart
c) Pie chart
d) Histogram
Answer:
d) Histogram

Question 8.
In ………………. graph, the width of the bars is always the same.
a) Line
b) Bar
c) Pie chart
d) Histogram
Answer:
b) Bar

Question 9.
The ………………. parameter allows us to display the percentage value using the Python string formatting in pie chart.
a) percent
b) autopct
c) pet
d) percentage
Answer:
b) autopct

Question 10.
Find the wrong statement.
If a single list is given to the plot( ) command, matplotlib assumes
(a) it is as a sequence of x values
(b) the sequence of y values
Answer:
(a) it is as a sequence of x values

Question 11.
………………. is the graphical representation of information and data.
a) Data visualization
b) Data Graphics
c) Data Dimension
d) Data Images
Answer:
a) Data visualization

Question 12.
………………. in data visualization helps to show the relationship in the data for more variables.
a) Tables
b) Graphics
c) Charts
d) Dashboards
Answer:
c) Charts

Question 13.
In a Scatter plot, the position of a point depends on its …………………………. value where each value is a position on either the horizontal or vertical dimension.
a) 2-Dimensional
b) 3-Dimensional
c) Single Dimensional
d) 4-Dimensional
Answer:
a) 2-Dimensional

Question 14.
……………………. plot shows the relationship between a numerical variable and a categorical variable.
(a) line
(b) Bar
(c) Scatter
(d) Box
Answer:
(b) Bar

Question 15.
…………………. is the representation of information in a graphic format.
a) Infographics
b) Graph
c) Symbol
d) Charts
Answer:
a) Infographics

Question 16.
…………………. is a collection of resources assembled to create a single unified visual display.
a) Infographics
b) Dashboard
c) Graph
d) Charts
Answer:
b) Dashboard

Question 17.
Matplotlib is a data visualization …………………. in Python.
a) control structure
b) dictionary
c) library
d) list
Answer:
c) library

Question 18.
Matplotlib allows us to create different kinds of …………………. ranging from histograms
a) Table
b) Charts
c) Maps
d) plots
Answer:
d) plots

Question 19.
Which function shows the percentage value in the pie chart?
(a) percent
(b) percentage
(c) slice
(d) auto pet
Answer:
(d) auto pet

Question 20.
…………………. command will take an arbitrary number of arguments.
a) show ()
b) plot ()
c) legend ()
d) title ()
Answer:
b) plot ()

Question 21.
The most popular data visualization library allows creating charts in few lines of code in python.
a) Molplotlib
b) Infographics
c) Data visualization
d) pip
Answer:
a) Molplotlib

II. Answer the following questions (2 and 3 Marks)

Question 1.
What is meant by Infographics?
Answer:
Infographics → An infographic (information graphic) is the representation of information in a graphic format.

Question 2.
Define Dashboard.
Answer:

• A dashboard is a collection of resources assembled to create a single unified visual display.
• Data visualizations and dashboards translate complex ideas and concepts into a simple visual format.
• Patterns and relationships that are undetectable in the text are detectable at a glance using the dashboard.

Question 3.
Write a note on matplotlib
Answer:

• Matplotlib is the most popular data visualization library in Python.
• It allows creating charts in few lines of code.

Question 4.
Write a note on the scatter plot.
Answer:

• A scatter plot is a type of plot that shows the data as a collection of points.
• The position of a point depends on its two dimensional value, where each value is a position on either the horizontal or vertical dimension.

Question 3.
What is Box Plot?
Answer:
Box plot: The box plot is a standardized way of displaying the distribution of data based on the five-number summary: minimum, first quartile, median, third quartile, and maximum.

III. Answer the following questions (5 Marks)

Question 1.
Write the key differences between Histogram and bar graph.
Answer:

Question 2.
Explain the purpose of
i) plt.plot()
ii) pt.bar()
iii) plt.sticks()
iv) plt.pie
Answer:
i) plt.plot():
plt.plot() is used to make a line chart or graph with matplotlib.

ii) plt.bar():
plt.bar() is used to make a bar chart with matplotlib.

iii) plt.xticks():

• plt.xticks() display the tick marks along the x-axis at the values represented.
• Then specify the label for each tick mark.
• It is used bar chart.

iv) plt.pie ():
plt.pie () is used to make a pie chart with matplotlib.

Question 3.
Draw the output for the following python code:
import matplotlib.pyplot as pit
a = [1,2,3]
b = [5,7,4]
x = [1,2,3]
y = [10,14,12]
plt.plot(a,b, label=/Lable 1′)
plt.plot(x,y, label=’Lable 2′)
plt.xlabel(‘X-Axis’)
plt.ylabel(‘Y-Axis’)
plt. legend ()
plt. show ()
Output:

Question 4.
Draw the chart for the given Python snippet.
import matplotlib.pyplot as plt
plt.plot([l,2,3,4], [1,4,9,16])
plt.show()
Output:

Hands-on Practice

Question 1.
Create a plot. Set the title, the x and y labels for both axes,
import matplotlib.pyplot as pit
x=[1,2,3]
Y=[5,7,4]
plt.plot(x,y)
plt.xlable(‘X-AXIS’)
plt.ylabel(‘Y -AXIS’)
plt.title(‘LINE GRAPH)
plt.show()

Question 2.
Plot a pie chart for your marks in the recent examination.
import matplotlib.pyplot as pit
s=[60,85,90,83,95] l=[‘LANG’,’ENG’,’MAT ‘,’SCI’,’SS’]
plt.pie(s,labels=l)
plt.title(‘MARKS’)
plt.show()

Question 3.
Plot a line chart on the academic performance of Class 12 students in Computer Science for the past 10 years.
import matplotlib.pyplot as pit
x=[2009,2010,2011,2012,2013,2014,2015,20 16,2017,2018]
y=[56,68,97,88,92,96,98,99,100,100]
plt.plot(x,y) plt.xlable(‘YEAR’)
plt.ylabel(‘PASS % IN C.S’)
plt. show ()

Question 4.
Plot a bar chart for the number of computer science periods in a week, import matplotlib.pyplot as pit x=[“MON”,”TUE”,”WED”, “THUR”,”FRI”]
y=[6,5,2,1,7] plt.bar(x,y) pit. xlable (‘ DAY S’) plt.ylabel(‘PERIOD’) plt.showQ

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 4 Differential Equations Ex 4.6 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 4 Differential Equations Ex 4.6

Choose the most suitable answer from the given four alternatives:

Question 1.
The degree of the differential equation
\(\frac { d^2y }{dx^4}\) – (\(\frac { d^2y }{dx^2}\)) + \(\frac { dy }{dx}\) = 3
(a) 1
(b) 2
(c) 3
(d) 4
Solution:
(a) 1
Hint:
Since the power of \(\frac{d^{4} y}{d x^{4}}\) is 1

Question 2.
The order and degree of the differential equation \(\sqrt{\frac { d^2y }{dx^2}}\) = \(\sqrt{\frac { dy }{dx}+5}\) are respectively.
(a) 2 and 2
(b) 3 and 2
(c) 2 and 1
(d) 2 and 3
Solution:
(a) 1
Hint:
Squaring on both sides
\(\frac { d^2y }{dx^2}\) = \(\frac { dy }{dx}\) + 5
Highest order derivative is \(\frac { d^2y }{dx^2}\)
∴ order = 2
Power of the highest order derivative \(\frac { d^2y }{dx^2}\) = 1
∴ degree = 1

Question 3.
The order and degree of the differential equation
(\(\frac { d^2y }{dx^2}\))^3/2 – \(\sqrt{(\frac { dy }{dx})}\) – 4 = 0
(a) 2 and 6
(b) 3 and 6
(c) 1 and 4
(d) 2 and 4
Solution:
(a) 2 and 6
Hint:

Highest order derivative is \(\frac { d^2y }{dx^2}\)
∴ Order = 2
Power of the highest order derivative \(\frac { d^2y }{dx^2}\) is
∴ degree = 6

Question 4.
The differential equation (\(\frac { dx }{dy}\))³ + 2y^1/2 = x
(a) of order 2 and degree 1
(b) of order 1 and degree 3
(c) of order 1 and degree 6
(d) of order 1 and degree 2
Solution:
(b) of order 1 and degree 3
Hint:

Highest order derivative is \(\frac { dy }{dx}\)
∴ order = 1
Power of the highest order derivative \(\frac { dy }{dx}\) is 3
∴ degree = 3

Question 5.
The differential equation formed by eliminating a and b from y = ae^x + be^-x
(a) \(\frac { d^2y }{dx^2}\) – y = 0
(b) \(\frac { d^2y }{dx^2}\) – \(\frac { dy }{dx}\)y = 0
(c) \(\frac { d^2y }{dx^2}\) = 0
(d) \(\frac { d^2y }{dx^2}\) – x = 0
Solution:
(a) \(\frac { d^2y }{dx^2}\) – y = 0
Hint:

Question 6.
If y = ex + c – c³ then its differential equation is
(a) y = x\(\frac { dy }{dx}\) + \(\frac { dy }{dx}\) – (\(\frac { dy }{dx}\))³
(b) y + (\(\frac { dy }{dx}\))³ = x \(\frac { dy }{dx}\) – \(\frac { dy }{dx}\)
(c) \(\frac { dy }{dx}\) + (\(\frac { dy }{dx}\))³ – x\(\frac { dy }{dx}\)
(d) \(\frac { d^3y }{dx^3}\) = 0
Solution:
(a) y = x\(\frac { dy }{dx}\) + \(\frac { dy }{dx}\) – (\(\frac { dy }{dx}\))³
Hint:
y = cx + c – c³ ……… (1)
\(\frac { dy }{dx}\) = c
(1) ⇒ y = x\(\frac { dy }{dx}\) + \(\frac { dy }{dx}\) – (\(\frac { dy }{dx}\))³

Question 7.
The integrating factor of the differential equation \(\frac { dy }{dx}\) + Px = Q is
(a) e^∫pdx
(b) e^∫Pdx
(c) e^∫Pdy
(d) e^∫pdy
Solution:
(d) e^∫pdy

Question 8.
The complementary function of (D² + 4) y = e^2x is
(a) (Ax+B)e^2x
(b) (Ax+B)e^-2x
(c) A cos2x + B sin2x
(d) Ae^-2x + Be^2x
Solution:
(c) A cos2x + B sin2x
Hint:
A.E = m² + 4 = 0 ⇒ m = ±2i
C.F = e^0x (A cos 2x + B sin 2x)

Question 9.
The differential equation of y = mx + c is (m and c are arbitrary constants)
(a) \(\frac { d^2y }{dx^2}\) = 0
(b) y = x\(\frac { dy }{dx}\) + o
(c) xdy + ydx = 0
(c) ydx – xdy = 0
Solution:
(a) \(\frac { d^2y }{dx^2}\) = 0
Hint:
y = mx + c
\(\frac { dy }{dx}\) = m ⇒ \(\frac { d^2y }{dx^2}\) = 0

Question 10.
The particular intergral of the differential equation \(\frac { d^2y }{dx^2}\) – 8\(\frac { dy }{dx}\) + 16y = 2e^4x
(a) \(\frac { x^2e^{4x} }{2!}\)
(b) y = x\(\frac { e^{4x} }{2!}\)
(c) x²e^4x
(d) xe^4x
Solution:
(c) x²e^4x
Hint:

Question 11.
Solution of \(\frac { dx }{dy}\) + Px = 0
(a) x = ce^py
(b) x = ce^-py
(c) x = py + c
(d) x = cy
Solution:
(b) x = ce^-py

Question 12.
If sec^2x x isa na intergranting factor of the differential equation \(\frac { dx }{dy}\) + Px = Q then P =
(a) 2 tan x
(b) sec x
(c) cos 2 x
(d) tan 2 x
Solution:
(a) 2 tan x
Hint:
I.F = sec² x
e^∫pdx = sec²x
∫pdx = log sec² x
∫pdx = 2 log sec x
∫pdx = 2∫tan x dx ⇒ p = 2 tan x

Question 13.
The integrating factor of the differential equation is x \(\frac { dy }{dx}\) – y = x²
(a) \(\frac { -1 }{x}\)
(b) \(\frac { 1 }{x}\)
(c) log x
(c) x
Solution:
(b) \(\frac { 1 }{x}\)
Hint:

Question 14.
The solution of the differential equation where P and Q are the function of x is
(a) y = ∫Q e^∫pdx dx + c
(b) y = ∫Q e^-∫pdx dx + c
(c) ye^∫pdx = ∫Q e^∫pdx dx + c
(c) ye^∫pdx = ∫Q e^-∫pdx dx + c
Solution:
(c) ye^∫pdx = ∫Q e^∫pdx dx + c

Question 15.
The differential equation formed by eliminating A and B from y = e^-2x (A cos x + B sin x) is
(a) y₂ – 4y₁ + 5 = 0
(b) y₂ + 4y – 5 = 0
(c) y₂ – 4y₁ + 5 = 0
(d) y₂ + 4y₁ – 5 = 0
Solution:
(d) y₂ + 4y₁ – 5 = 0
Hint:
y = e^-2x (A cosx + B sinx)
y e^2x = A cosx + B sinx ………. (1)
y(e^2x) (2) + e^2x \(\frac { dy }{dx}\) = A(-sin x) + B cos x ………. (2)
Differentiating w.r.to x

Question 16.
The particular integral of the differential equation f (D) y = e^ax where f(D) = (D – a)²
(a) \(\frac { x^2 }{2}\) e^ax
(b) xe^ax
(c) \(\frac { x }{2}\) e^ax
(d) x² e^ax
Solution:
(a) \(\frac { x^2 }{2}\) e^ax

Question 17.
The differential equation of x² + y² = a²
(a) xdy + ydx = 0
(b) ydx – xdy = 0
(c) xdx – ydx = 0
(d) xdx + ydy = 0
Solution:
(d) xdx + ydy = 0
Hint:
x² + y² = a²
⇒ 2x + 2y \(\frac{d y}{d x}\) = 0
⇒ x dx + y dy = 0

Question 18.
The complementary function of \(\frac { d^y }{dx^2}\) – \(\frac { dy }{dx}\) = 0 is
(a) A + Be^x
(b) (A + B)e^x
(c) (Ax + B)e^x
(d) Ae^x + B
Solution:
(a) A + Be^x
Hint:
A.E is m² – m = 0
⇒ m(m – 1) = 0
⇒ m = 0, 1
CF is Ae^0x + Be^x = A + Be^x

Question 19.
The P.I of (3D² + D – 14) y = 13e^2x is
(a) \(\frac { 1 }{2}\) e^x
(b) xe^2x
(c) \(\frac { x^2 }{2}\) e^2x
(d) Ae^x + B
Solution:
(b) xe^2x
Hint:
(3D² + D – 14) y = 13e^2x

Question 20.
The general solution of the differential equation \(\frac { dy }{dx}\) = cos x is
(a) y = sinx + 1
(b) y = sinx – 2
(c) y = cosx + C, C is an arbitary constant
(d) y = sinx + C, C is an arbitary constant
Solution:
(d) y = sinx + C, C is an arbitary constant
Hint:
\(\frac { dy }{dx}\) = cos x
dy = cos x dx
∫dy = ∫cos x dx ⇒ y = sin x + c

Question 21.
A homogeneous differential equation of the form \(\frac { dy }{dx}\) = f(\(\frac { y }{x}\)) can be solved by making substitution.
(a) y = v x
(b) y = y x
(c) x = v y
(d) x = v
Solution:
(a) y = v x

Question 22.
A homogeneous differential equation of the form \(\frac { dy }{dx}\) = f(\(\frac { x }{y}\)) can be solved by making substitution.
(a) x = v y
(b) y = v x
(c) y = v
(d) x = v
Solution:
(a) y = v x

Question 23.
The variable separable form of \(\frac { dy }{dx}\) = \(\frac { y(x-y) }{x(x+y)}\) by taking y = v x and \(\frac { dy }{dx}\) = v + x \(\frac { dy }{dx}\)
(a) \(\frac { 2v^2 }{1+v}\) dv = \(\frac { dx }{x}\)
(b) \(\frac { 2v^2 }{1+v}\) dv = –\(\frac { dx }{x}\)
(c) \(\frac { 2v^2 }{1-v}\) dv = \(\frac { dx }{x}\)
(d) \(\frac { 1+v }{2v^2}\) dv = –\(\frac { dx }{x}\)
Solution:
(d) \(\frac { 1+v }{2v^2}\) dv = –\(\frac { dx }{x}\)
Hint:

Question 24.
Which of the following is the homogeneous differential equation?
(a) (3x – 5) dx = (4y – 1) dy
(b) xy dx – (x³ + y³) dy = 0
(c) y²dx + (x² – xy – y²) dy = 0
(d) (x² + y) dx (y² + x) dy
Solution:
(c) y²dx + (x² – xy – y²) dy = 0

Question 25.
The solution of the differential equation \(\frac { dy }{dx}\) = \(\frac { y }{x}\) + \(\frac { f(\frac { y }{x}) }{ f(\frac { y }{x}) }\) is
(a) f\(\frac { y }{x}\) = k x
(b) x f\(\frac { y }{x}\) = k
(c) f\(\frac { y }{x}\) = k y
(d) x f\(\frac { y }{x}\) = k
Solution:
(a) f\(\frac { y }{x}\) = k x

Subject Matter Experts at SamacheerKalvi.Guide have created Tamilnadu State Board Samacheer Kalvi 12th Computer Applications Answers Solutions Guide Pdf Free Download in English Medium and Tamil Medium are part of Samacheer Kalvi 12th Books Solutions.

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Samacheer Kalvi 12th Computer Applications Book Solutions Answers Guide

Samacheer Kalvi 12th Computer Applications Book Back Answers

Tamilnadu State Board Samacheer Kalvi 12th Computer Applications Book Back Answers Solutions Guide.

• Chapter 1 Multimedia and Desktop Publishing
• Chapter 2 An Introduction to Adobe Pagemaker
• Chapter 3 Introduction to Database Management System
• Chapter 4 Introduction to Hypertext Pre-Processor
• Chapter 5 PHP Function and Array
• Chapter 6 PHP Conditional Statements
• Chapter 7 Looping Structure
• Chapter 8 Forms and Files
• Chapter 9 Connecting PHP and MYSQL
• Chapter 10 Introduction to Computer Networks
• Chapter 11 Network Examples and Protocols
• Chapter 12 DNS (Domain Name System)
• Chapter 13 Network Cabling
• Chapter 14 Open Source Concepts
• Chapter 15 E-Commerce
• Chapter 16 Electronic Payment Systems
• Chapter 17 E-Commerce Security Systems
• Chapter 18 Electronic Data Interchange – EDI

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Subject Matter Experts at SamacheerKalvi.Guide have created Tamilnadu State Board Samacheer Kalvi 12th Computer Science Book Answers Solutions Guide Pdf Free Download in English Medium and Tamil Medium are part of Samacheer Kalvi 12th Books Solutions.

Let us look at these TN State Board New Syllabus Samacheer Kalvi 12th Std Computer Science Guide Pdf of Text Book Back Questions and Answers, Notes, Chapter Wise Important Questions, Model Question Papers with Answers, Study Material, Question Bank and revise our understanding of the subject.

Students can also read Tamil Nadu 12th Computer Science Model Question Papers 2020-2021 English & Tamil Medium.

Samacheer Kalvi 12th Computer Science Book Solutions Answers Guide

Samacheer Kalvi 12th Computer Science Book Back Answers

Tamilnadu State Board Samacheer Kalvi 12th Computer Science Book Back Answers Solutions Guide.

Unit 1 Problem Solving Techniques

• Chapter 1 Function
• Chapter 2 Data Abstraction
• Chapter 3 Scoping
• Chapter 4 Algorithmic Strategies

Unit 2 Core Python

• Chapter 5 Python -Variables and Operators
• Chapter 6 Control Structures
• Chapter 7 Python Functions
• Chapter 8 Strings and String Manipulations

Unit 3 Modularity and OOPS

• Chapter 9 Lists, Tuples, Sets and Dictionary
• Chapter 10 Python Classes and Objects

Unit 4 Database Concepts and MySql

• Chapter 11 Database Concepts
• Chapter 12 Structured Query Language (SQL)
• Chapter 13 Python and CSV Files

Unit 5 Integrating Python with MySql and C++

• Chapter 14 Importing C++ Programs in Python
• Chapter 15 Data Manipulation Through SQL
• Chapter 16 Data Visualization Using Pyplot: Line Chart, Pie Chart and Bar Chart

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Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Economics Guide Pdf Chapter 5 Monetary Economics
Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Economics Solutions Chapter 5 Monetary Economics

12th Economics Guide Monetary EconomicsText Book Back Questions and Answers

Part – I

Multiple Choice questions

Question 1.
The RBI Headquarters is located at
a) Delhi
b) Chennai
c) Mumbai
d) Bengaluru
Answer:
c) Mumbai

Question 2.
Money is
a) acceptable only when it has intrinsic value
b) constant in purchasing power
c) the most liquid of all as sets
d) needed for allocation of resources
Answer:
c) the most liquid of all as sets

Question 3.
Paper currency system i s managed by the
a) Central Monetary authority
b) State Government
c) Central government
d) Banks
Answer:
a) Central Monetary authority

Question 4.
The basic distinction M₁ between and M₂ is with regard to.
a) post office deposits
b) time deposits of banks
c) saving deposits of banks
d) currency
Answer:
b) time deposits of banks

Question 5.
Irving Fisher’s Quantity Theory of Money was popularized in
a) 1908
b) 1910
c) 1911
d)1914
Answer:
c) 1911

Question 6.
MV stands for
a) demand for money
b) supply of legal tender money
c) supply of bank money
d) Total supply of money
Answer:
b) supply of legal tender money

Question 7.
Inflation means
a) Prices are rising
b) Prices are falling
c) Value of money is increasing
d) Prices are remaining the same
Answer:
a) Prices are rising

Question 8.
………………… inflation results in a serious depreciation of the value of money.
a) Creeping
b) Walking
c) running
d) Hyper
Answer:
d) Hyper

Question 9.
…………………… inflation occurs when general prices of commodities increase due to an increase in production costs such as wages and raw materials.
a) Cost – push
b) demand-pull
c) running
d) galloping
Answer:
a) Cost-push

Question 10.
During inflation, who are the gainers?.
a) Debtors
b) Creditors
c) wage and salary earners
d) Government
Answer:
a) Debtors

Question 11.
…………………. is a decrease in the rate of inflation.
a) Disinflation
b) Deflation
c) Stagflation
d) Depression
Answer:
a) Disinflation

Question 12.
Stagflation combines the rate of inflation with
a) Stagnation
b) employment
c) output
d) price
Answer:
a) Stagnation

Question 13.
The study of alternating fluctuations in business activity is referred to in Economics as
a) Boom
b) Recession
c) Recovery
d) Trade cycle
Answer:
d) Trade cycle

Question 14.
During depression, the level of economic activity becomes extremely
a) high
b) bad
c) low
d) good
Answer:
c) low

Question 15.
“Money can be anything that is generally accepted as a means of exchange and that the same time acts as a measure and a store of value”, This definition was given by
a) Crowther
b) A. C. Pigou
c) F.A. Walker
d) Francis Bacon
Answer:
a) Crowther

Question 16.
A debit card is an example of
a) Currency
b) Paper currency
c) Plastic money
d) Money
Answer:
c) Plastic money

Question 17.
Fisher’s quantity theory of money is based on the essential function of money as
a) measure of value
b) store of value
c) medium of exchange
d) standard of deferred payment
Answer:
c) medium of exchange

Question 18.
V in M V = PT equation stands for
a) Volume of trade
b) Velocity of circulation of money
c) Volume of transaction
d) Volume of bank and credit money
Answer:
b) Velocity of circulation of money

Question 19.
When prices rise slowly, we call it
a) galloping inflation
b) mild inflation
c) hyperinflation
d) deflation
answer:
b) mild inflation

Question 20.
……………… inflation is in no way dangerous to the economy.
a) walking
b) running
c) creeping
d) galloping
Answer:
c) creeping

PART-B

Answer the following questions in one or two sentences.

Question 21.
Define Money.
Answer:

1. Many economists developed definitions for money. Among these, definitions of Walker and Crowther are given below:
   “Money is, what money does ” – Walker.
2. “Money can be anything that is generally accepted as a means of exchange and at the same time acts as a measure and a store of value”. – Crowther
3. Money is anything that is generally accepted as payment for goods and services and repayment of debts and that serves as a medium of exchange.
4. A medium of exchange is anything that is widely accepted as a means of payment.

Question 22.
What is barter?
Answer:
Exchange of goods for goods was known as the ” Barter System”

Question 23.
What is commodity money?
Answer:

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

Question 24.
What is gold standard?
Answer:
Gold standard is a system in which the value of the monetary unit or the stan¬dard currency is directly linked with gold.

Question 25.
What is Plastic money? Give example.
Answer:

1. The latest type of money is plastic money.
2. Plastic money is one of the most evolved forms of financial products.
3. Plastic money is an alternative to cash or the standard “money”.
4. Plastic money is a term that is used predominantly in reference to the hard plastic cards used every day in place of actual banknotes.
5. Plastic money can come in many different forms such as Cash cards, Credit cards, Debit cards, Pre-paid Cash cards, Store cards, Forex cards, and Smart cards.
6. They aim at removing the need for carrying cash to make transactions.

Question 26.
Define inflation.
Answer:
” Too much of money chasing too few goods”- Coulbourn.

Question 27.
What is Stagflation?
Answer:
Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation.

PART-C

Answer the following questions in a paragraph.

Question 28.
Write a note on metallic money.
Answer:

• Among the modern money systems evolved, the metallic standard is the premier one.
• Under the metallic standards, some kind of metal either gold or silver is used to determine the standard value of the money and currency.
• Standard coins made out of the metal are the principal coins used under the metallic standard.
• Their face value is equal to their intrinsic metal value.
• These standard coins are full-bodied full weighted legal tender.

Question 29.
What is money supply?
Answer:

1. Money supply means the total amount of money in an economy.
2. It refers to the amount of money which is in circulation in an economy at any given time.
3. Money supply plays a crucial role in the determination of price level and interest rates.
4. Money supply viewed at a given point of time is stock and over a period of time it is a flow.

Question 30.
What are the determinants of the money supply?
Answer:

• Currency deposits Ratio (CDR): It is the ratio of money held by the public in currency to that they held in bank deposits.
• Reserve Deposit Ratio (RDR) : It consists of two things (a) vault cash in banks and (b) deposits of commercial banks with RBI.
• Cash Reserve Ratio (CRR): It is the fraction of the deposits the banks must keep with RBI. .
  Statutory Liquidity Ratio (SLR): It is the fraction of the total demand and time deposits of the commercial banks in the form of specified liquid assets.

Question 31.
Write the types of inflation.
Answer:
The four types of inflation are –
1. Creeping Inflation:
Creeping inflation is slow-moving and very mild. The rise in prices will not be perceptible but spread over a long period. This type of inflation is in no way dangerous to the economy. This is also known as mild inflation or moderate inflation.

2. Walking Inflation:
When prices rise moderately and the annual inflation rate is a single digit. (3% – 9%), it is called walking or trolling inflation.

3. Running Inflation:
When prices rise rapidly like the running of a horse at a rate of speed of 10% – 20% per annum, it is called running inflation.

4. Galloping inflation:
Galloping inflation or hyperinflation points out to unmanageably high inflation rates that run into two or three digits. By high inflation, the percentage of the same is almost 20% to 100% from an overall perspective.

Other types of inflation (on the basis of inducement):

1. Currency inflation:
The excess supply of money in circulation causes rise in price level.

2. Credit inflation:
When banks are liberal in lending credit, the money supply increases and thereby rising prices. .

3. Deficit induced inflation:
The deficit budget is generally financed through the printing of currency by the Central Bank. As a result, prices rise.

4. Profit induced inflation:
When the firms aim at higher profit, they fix the price with higher margin. So prices go up.

5. Scarcity induced inflation:
Scarcity of goods happens either due to fall in production (e.g. farm goods) or due to hoarding and black marketing. This also pushes up the price. (This has happened is Venezula in the year 2018).

6. Tax induced inflation:
Increase in indirect taxes like excise duty, custom duty and sales tax may lead to rise in price (e.g. petrol and diesel). This is also called taxflation.

Question 32.
Explain Demand-pull and Cost-push inflation.
Answer:

• Demand-pull Inflation: If the demand is high for a product and supply is low, the price of the products increases.
• Cost-push Inflation: when the cost of raw materials and other inputs rises inflation results. An increase in wages paid to labour also leads to inflation.

Question 33.
State Cambridge equations of the value of money.
Answer:
Cambridge Approach (Cash Balances Approach):

1. Marshall’s Equation:
The Marshall equation is expressed as:
M = KPY
Where
M is the quantity of money Y is the aggregate real income of the community. P is Purchasing Power of money
K represents the fraction of the real income which the public desires to hold in the form of money.
Thus, the price level P = M/KY or the value of money (The reciprocal of the price level) is 1/P = KY/M
The value of money in terms of this equation can be found out by dividing the total quantity of goods that the public desires to holdout of the total income by the total supply of money. According to Marshall’s equation, the value of money is influenced not only by changes in M, but also by changes in K.

2. Keynes’Equation
Keynes equation is expressed as:
n = pk (or) p = n / k
Where
n is the total supply of money p is the general price level of consumption goods
k is the total quantity of consumption units the people decide to keep in the form of cash, Keynes indicates that K is a real balance, because it is measured in terms of consumer goods. According to Keynes, peoples’ desire to hold money is unaltered by the monetary authority. So, price level and value of money can be stabilized through regulating quantity of money (n) by the monetary authority.
Later, Keynes extended his equation in the following form:
n = p (k + rk’) or p = n / (k + rk’)
Where,
n = total money supply p = price level of consumer goods
k = peoples’ desire to hold money in hand (in terms of consumer goods) in the total income of them
r = cash reserve ratio
k’ = community’s total money deposit in banks, in terms of consumers goods.
In this extended equation also, Keynes assumes that k, k’, and r are constant. In this situation, price level (P) is changed directly and proportionately changing in money volume (n).

Question 34.
Explain disinflation.
Answer:

• Disinflation is slowing down the rate of inflation by controlling the amount of credit available to consumers without causing more unemployment.
• Disinflation may be defined as the process of reversing inflation without creating unemployment or reducing output in the economy.

PART – D

Answer the following questions in about a page.

Question 35.
Illustrate Fisher’s Quantity theory of money.
Answer:

• The general form of “Equation of Exchange” given by Fisher is
• M V = PT
• This equation is referred to as ‘Cash Transaction Equation.’ Where M = money supply/quantity of money
• v = velocity of money
• p = Price level
• T = volume of Transaction
• It is expressed as
• \(P=\frac{M V}{T}\)
• Later, Fisher extended his original equation of exchange to include bank deposits M₁ and its velocity V ₁
  The revised equation was :
  FT = MV+ M¹ V ¹
  \(P=\frac{M V+M^{\prime} V^{\mid}}{T}\)
  P = f(M)
     
• Figure (A) shows the effect of changes in the quantity of money on the price level.
• When the quantity of money is 0M, the price level is OP. When the quantity of money is doubled to OM₂, the price level is also double to OP₂. Further, when the quantity of money is increased four-fold to OM₄, the price level also increases by four times to OP₄. This relationship is expressed by the curve OP = f (M) from the origin at 45°.
• Figure (B) shows the inverse relationship between the quantity of money and the value of money where the value of money is taken on the vertical axis. When the quantity of money is 0M, the value of money, O₁/P₁ – But with the doubling of the quantity of money to OM₂, the value of money becomes one- half of what it was before, (0I/P2).
• But, with the quantity of money increasing by fourfold to OM₄. the value of money is reduced by 01/P₄.
• This inverse relationship between the quantity of money and the value of money is shown by downward sloping curve 1/ OP = f(M)

Question 36.
Explain the functions of money.
Answer:
The main functions of money can be classified into four. They are

1. Primary Functions
2. Secondary Functions
3. Contingent Functions
4. Other Functions

I.Primary Functions:

• Money as a Medium of Exchange:
  This is considered as the basic function of money. Money has the quality of general acceptability, and all exchanges take place in terms of money.
• Money as a measure of value :
  The prices of all goods and services are expressed in terms of money. Money is thus looked upon as a collective measure of value.

II. Secondary Functions:

• Money as a store of value :
  The difficulty of savings done by commodities is overcome by the invention of money. Money also serves as an excellent store of wealth, as it can be easily converted into other marketable assets, such as land, machinery, plant etc.,
• Money as a standard of Deferred payments: The modern money- economy has greatly facilitated the borrowing and lending processes. In other words, money now acts as the standard of deferred payments.
• Money as a means of Transferring purchasing power: The exchange of goods is now extended to distant lands. It is therefore, felt necessary to transfer purchasing power from one place to another.

III. Contingent Functions :

• Basis of the credit system: Money is the basis of the credit system. Business transactions are either in cash or on credit.
• Money facilitates the distribution of National Income: The invention of money facilitated the distribution of income as rent, wage, interest, and profit.
• Money helps to Equalize Marginal utilities and Marginal productivities: As the prices of all commodities are expressed in money it is easy to equalize marginal utilities derived from the commodities. Money also helps to equalize marginal productivities of various factors of production.
• Money Increases productivity of capital: Money is the most liquid form of capi¬tal. It is on account of this liquidity of money that capital can be transferred from the less productive to the more productive uses.

IV. Other functions:

• Money helps to maintain Repayment capacity
• Money represents Generalized purchasing power
• Money gives liquidity to capital

Question 37.
What are the causes and effects of inflation on the economy?
Answer:
Causes of Inflation:
The main causes of inflation in India are as follows:

1. Increase in Money Supply:
Inflation is caused by an increase in the supply of money which leads to an increase in aggregate demand. The higher the growth rate of the nominal money supply, the higher is the rate of inflation.

2. Increase in Disposable Income:
When the disposable income of the people increases, it raises their demand for goods and services. Disposable income may increase with the rise in national income or reduction in taxes or reduction in the saving of the people.

3. Increase in Pubiic Expenditure:
Government activities have been expanding due to developmental activities and social welfare programmes. This is also a cause for price rise.

4. Increase in Consumer Spending:
The demand for goods and services increases when they are given credit to buy goods on a hire-purchase and installment basis.

5. Cheap Monetary Policy:
Cheap monetary policy or the policy of credit expansion also leads to an increase in the money supply which raises the demand for goods and services in the economy.

6. Deficit Financing:
In order to meet its mounting expenses, the government resorts to deficit financing by borrowing from the public and even by printing more notes.

7. Black Assests, Activities and Money:
The existence of black money and black assets due to corruption, tax evasion, etc., increase the aggregate demand. People spend such money, lavishly. Black marketing and hoarding reduce the supply of goods.

8. Repayment of Public Debt:
Whenever the government repays its past internal debt to the public, it leads to increase in the money supply with the public.

9. Increase in Exports:
When exports are encouraged, domestic supply of goods decline. So prices rise.

Effects of Inflation:
The effects of inflation can be classified into two heads:

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

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

(I) However, hyperinflation results in a serious depreciation of the value of money.

(II) When the value of money undergoes considerable depreciation, this may even drain out the foreign capital already invested in the country.

(III) With reduced capital accumulation, the investment will suffer a serious setback which may have an adverse effect on the volume of production in the country.

(IV) Inflation also leads to hoarding of essential goods both by the traders as well as the consumers and thus leading to still hiher inflation rate.

(V) Inflation encourages investment in speculative activities rather than productive purposes.

2. Effects on Distribution:

1. Debtors and Creditors:
During inflation, debtors are the gainers while the creditors are losers.

2. Fixed – income Groups:
The fixed income groups are the worst hit during inflation because their incomes being fixed do not bear any relationship with the rising cost of living.

3. Entrepreneurs:
Inflation is a boon to the entrepreneurs whether they are manufacturers, traders, merchants or businessmen because it serves as a tonic for business enterprise.

4. Investors:
The investors, who generally invest in fixed interest yielding bonds and securities have much to lose during inflation.

Question 38.
Describe the phases of the trade cycle.
Answer:
The four different phases of the trade cycle are

1. Boom
2. Recession
3. Depression and
4. Recovery.

i) Boom or prosperity phase: The full employment and the movement of the economy beyond full employment is characterized as the boom period. During this period money wages rise, profits increase and interest rates go up The demand for bank credit increases and there is all-around optimism.

ii) Recession: The turning point from a boom is called recession. Generally, the failure of a company or bank bursts the boom and brings a phase of recession. Investments are drastically reduced, production comes down and income and profit decline. There is panic in the stock market and business activities show signs of dullness. As the liquidity preference rises money market becomes tight.

iii) Depression: During depression on the level of economic activity becomes extremely low. Depression is the worst – phase of the ‘business cycle Extreme point of depression is called ” trough ” An economy that fell down in trough could not come out from this without external help.

iv) Recovery – This is the turning point from depression to revival towards an upswing. It begins with the revival of demand for capital goods. Autonomous investments boost the activity. Recovery may be initiated by innovation or investment or by government expenditure.

12th Economics Guide Monetary Economics Additional Important Questions and Answers

II. Choose the best Answer

Question 1.
During Inflation?
(a) Businessmen gain
(b) Wage earners gain
(c) Salary gain
(d) Renters gain
Answer:
(a) Businessmen gain

Question 2.
The history of the Barter system starts in
a) 6000 B.C
b) 5000 B.C
c) 7000 B.C
d) 2500B.C
Answer:
a) 6000 B.C

Question 3.
The modem economy is described as –
(a) Demand Economy
(b) Supply Economy
(c) Money Economy
(d) Wage Economy
Answer:
(c) Money Economy

Question 4.
Indian currency symbol f was designed by ……..
a) Manmohan singh
b) Raguram Raj an
c) Arvind panakariya
d) Udayakumar
Answer:
d) Udayakumar

Question 5.
Currency notes in circulation are referred to as –
(b) Fiat money
(c) Value of money
(d) Cheap money
Answer:
(b) Fiat money

Question 6.
……………………………….. money consists of vault cash in banks and deposits of commercial banks with RBI
a) Reserve deposit Ratio
b) Currency Deposit Ratio
c) Cash Reserve Ratio
d) Statutory Liquidity Ratio
Answer :
a) Reserve deposit Ratio

Question 7.
“The Purchasing Power of Money” is a book written by ……………………
a) Marshall
b) Keynes
c) Adam smith
d) Irving Fisher
Answer:
d) Irving Fisher

Question 8.
Which is the most important function of money?
(a) Measure of value
(b) Store of value
(c) Medium of exchange
(d) Standard of deferred payments
Answer:
(c) Medium of exchange

Question 9.
Inflation is “A state of abnormal increase in the quantity of purchasing power” is said by
a) Coulbourn
b) Walker
c) Gregory
d) Fisher
Answer:
c) Gregory

Question 10.
What is the cheap money policy?
(a) High rates of Interest
(b) Low rates of Interest
(c) Medium rates of Interest
(d) Very high rates of Interest
Answer:
(b) Low rates of Interest

Question 11.
………………………….. inflation occurs when banks are liberal in lending credit.
a) Currency inflation
b) Profit induced inflation
b) Credit inflation
d) Scarcity induced inflation.
Answer:
c) Credit inflation

Question 12.
The extreme point of depression is called as ……………..
a) Recession
b) Trough
c) Depression
d) None of the above
Answer:
b) Trough

Question 13.
Monetary policy is usually effective in controlling –
(a) Bank
(b) Inflation
(c) Deflation
(d) Stagflation
Answer:
(b) Inflation

II. Match the following

Question 1.
A) Barter system – 1) Managed currency standard
B) Metallic standard – 2) Commodities
C) Paper currency standard – 3) Smart cards
D) Plastic money – 4) Coins

Answer:
a) 2 4 1 3

Question 2.
A) Primary function – 1) Basis of credit system
B) Secondary function – 2) Liquidity
C) Contingent function – 3) Medium of exchange
D) Other function – 4) Store of value

Answer:
c) 3 4 1 2

Question 3.
A) Creeping Inflation – 1) 20-100%
B) Walking Inflation – 2) Moderate inflation
C) Running Inflation – 3) 3-9 %
D) Galloping Inflation – 4) 10-20%

Answer :
d ) 2 3 4 1

III. Choose the correct pair

Question 1.
a) Cash Deposit Ratio – CRR
b) Reserve Deposit Ratio – RDR
c) Cash Reserve Ratio – SLR
d) Statutory Liquidity Ratio – CDR
Answer:
b) Reserve Deposit Ratio – RDR

Question 2.
a) Money is what money does – Crowther
b) Money – Medium of Exchange
c) Plastic currency – Managed currency standard
d) Cryptocurrency – Credit card
Answer:
b) Money – Medium of Exchange

Question 3.
a) M₁ – Broad money
b) M₄ – Narrow money
c) MV = PT
d) n – P (K + rk₁)
Answer:
c) MV = PT

IV. Choose the incorrect pair

Question 1.
In the equation MV = PT
a) M – Quantity of money
b) V – Velocity of money
c) P – Price level
d) T – Volume of Trade
Answer:
d) T – Volume of Trade

Question 2.
a) Quantity theory of money – J.M. Keynes
b) Keynes Equation – n = pk
c) Marshall’s Equation – M = KPY
d) Purchasing power of money – Irving Fisher
Answer:
a) Quantity theory of money – J.M. Keynes

Question 3.
a) Paper currency – Reserve Bank
b) Coins – Ministry of finance
c) Currency symbol -?
d) M₄ – Narrow money
Answer:
d) M₄ – Narrow money

V. Choose the correct Statement

Question 1.
a) The total amount of money is an economy denotes the demand for money.
b) Money supply refers to the amount of money which is in circulation in an economy at any given time.
c) Inflation is “A state of abnormal increase in the quantity of purchasing power.” Coulbourn.
d) The rate of Inflation is almost 20 to 100% per annum, it is called walking Inflation.
Answer:
b) Money supply refers to the amount of money which is in circulation in an economy at any given time.

Question 2.
a) When banks are liberal in lending credit, the money supply increases which is called credit inflation.
b) During inflation, debtors are the losers.
c) The fiscal measures to control inflation are adopted by the Central Bank.
d) During deflation prices rise.
Answer:
a) When banks are liberal in lending credit, the money supply increases which is called credit inflation.

Question 3.
a) During Boom the demand for bank credit decreases.
b) The turning point from the boom condition is called Depression.
c) Money is an asset that is generally accepted as a medium of Exchange.
d) An increase in business activities after the lowest point is called a Recession.
Answer:
c) Money is an asset that is generally accepted as a medium of Exchange.

VI. Choose the Incorrect Statement.

Question 1.
a) “Money is what money does” – Walker.
b) Phoenicians adopted bartering of goods with various other cities across oceans.
c) In the Gold standard the monetary unit is defined in terms of a certain weight of gold.
d) In India currency in circulation is being controlled by the central Government.
Answer:
d) In India currency in circulation is being controlled by the central Government.

Question 2.
a) The operation of cryptocurrency is controlled by the Central Bank.
b) Money is the basis of the credit system.
c) Money is the most liquid form of capital.
d) Fisher’s equation (MV=PT) is also called as “Equation of Exchange”.
Answer:
a) The operation of cryptocurrency is controlled by the Central Bank.

Question 3.
a) M₁ – Currency, coins, and demand deposits
b) M₂ – M₁ + Savings deposits with post office savings banks.
c) M₃ – M₁ + Time deposits of all commercial and cooperative banks.
d) M₄ – M₃ + Total deposits with post offices.
Answer:
c) M₃ – M₁ + Time deposits of all commercial and co-operative banks.

Pick the odd one out:

Question 1.
a) M₁
b) M₅
c) M₃
d) M₄
Answer:
b) M₅

Question 2.
a) CDR
b) RDR
c) SDR
d) CRR
Answer:
c) SDR

Question 3.
a) Cost-Push inflation
b) Creeping inflation
c) Walking inflation
d) Running inflation
Answer:
a) Cost-Push inflation

VIII. Analyse the Reason

Question 1.
Assertion (A) : Plastic money is an alternative to cash or standard money.
Reason (R) : Plastic money refers to the hard plastic cards used every day in place of actual banknotes.
Answer:
b) Assertion (A) and Reason (R) both are true, but (R) is not the correct explanation of (A).

Question 2.
Assertion (A) : Money acts as a collective measure of value,
Reason (R) : The prices of all goods and services are expressed in terms of money.
Answer:
a) Assertion (A) and Reason (R) both are true, and (R) is the correct explanation of (A).

Option:
a) Assertion (A) and Reason (R) both are true, and (R) is the correct explanation of (A).
b) Assertion (A) and Reason (R) both are true, but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false and (R) is true.

IX. 2 Mark Questions:

Question 1.
Define “Silver Standard”?
Answer:
Silver Standard: The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver standard is a monetary arrangement in which a country’s Government allows the conversion of its currency into a fixed amount of silver.

Question 2.
When and by whom Barter system introduced?
Answer:

1. The Barter system was evolved in 6000 BC.
2. The barter system was introduced by Mesopotamia tribes.

Question 3.
What is the silver standard?
Answer:
The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver.

Question 4.
Write RBI publishes information alternative measures of the money supply?
Answer:
RBI publishes information for four alternative measures of Money supply, namely M1, M₂ and M_3, and M₄
M₁ = Currency, coins, and demand deposits.
M₂ = M₁ + Savings deposits with post office savings banks.
M₃ = M₂ + Time deposits of all commercial and cooperative banks.
M₄ = M₃ + Total deposits with Post offices.

Question 5.
What is CryptoCurrency?
Answer:
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Question 6.
State the meaning of Inflation.
Answer:
Inflation is a consistent and appreciable rise in the general price level.

Question 7.
Write Fisher’s Quantity Theory of money equation?
Answer:

1. The general form of the equation given by Fisher is MV = PT.
2. Fisher points out that in a country during any given period of time, the total quantity of money (MV) will be equal to the total value of all goods and services bought and sold (PT).
3. MV = PT

Question 8.
State Marshall’s equation in Cambridge Approach.
Answer:

• M = KPY
• M – Quantity of Money
• Y – aggregate real income of the community
• P – The purchasing power of money
• K – Fraction of the real income which the public desires to hold in the form of money.

Question 9.
What is creeping Inflation?
Answer:
Creeping Inflation is slow-moving and very mild. The rise in price will not be perceptible but spread over a long period.

Question 10.
What is Galloping inflation?
Answer:
Galloping inflation or hyperinflation points out to unmanageably high inflation rates that run ipto two or three digits.

Question 11.
What is Demand-pull Inflation?
Answer:
If the demand is high for a product and supply is low, the price of the products increase. This is called Demand-pull inflation.

Question 12.
What is cost-push inflation?
Answer:
When the cost of raw materials and other inputs rises inflation results. An increase in wages paid to labour also leads to inflation.

Question 13.
What is Deflation?
Answer:
Deflation is a situation of falling prices, reduced money supply, and unemployment.

Question 14.
What is Stagflation?
Answer:
The co-existence of a high rate of unemployment and inflation.

X. 3 Mark Question

Question 1.
Write the meaning of Money supply?
Answer:
Meaning of Money Supply:

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

Question 2.
Explain the measures of the money supply.

• M₁ – Currency, coins, and demand deposits
• M₂ – M₁ + Savings deposits with post office savings banks.
• M₃ – M₂ + Time deposits of all commercial and cooperative banks.
• M₃ – M₄ + Total deposits with post offices.
• M₁ and M₂ are known as narrow money
• M₃ and M₄ are known as broad money

Question 3.
What is the meaning of the trade cycle?
Answer:
Meaning of Trade Cycle:

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

Question 4.
Write a note on Irving Fisher.
Answer:

• The quantity theory of money is a very old theory. It was first propounded in 1588 by an Italian economist, Davanzatti.
• The credit for popularizing this theory belongs to the well-known American economist, Irving Fisher who published the book, “The purchasing power of Money” in 1911.
• He gave it a quantitative form in terms of his famous ” Equation of Exchange”.

Question 5.
Explain wage Price spiral in inflation.
Answer:

• Wage – Price spiral is used to explaining the cause and effect relationship between rising wages and rising prices or inflation.
• If wages increases, demand for the products increases which results in a price increase and causes inflation.
• Wages increase because of the increase in general price level and the cost of production increase which further increases the price level and creates a spiral.

XI. 5 Mark Question

Question 1.
Explain the Measures of control inflation?
Answer:
Measures to Control Inflation:
Keynes and Milton Friedman together suggested three measures to prevent and control inflation.

• Monetary measures
• Fiscal measures (J.M. Keynes) and
• Other measures.

1. Monetary Measures: These measures are adopted by the Central Bank of the country. They are

• • Increase in Bankrate
  • Sale of Government Securities in the Open Market
  • Higher Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
  • Consumer Credit Control and
  • Higher margin requirements
  • Higher Repo Rate and Reverse Repo Rate.

2. Fiscal Measures:

• Fiscal policy is now recognized as an important instrument to tackle an inflationary situation.
• The major anti-inflationary fiscal measures are the following:
• Reduction of Government Expenditure and Public Borrowing and Enhancing taxation.

3. Other Measures: These measures can be divided broadly into short-term and long-term measures.

(a) Short-term measures can be in regard to public distribution of scarce essential commodities through fair price shops (Rationing). In India whenever a shortage of basic goods has been felt, the government has resorted to importing so that inflation may not get triggered.

(b) Long-term measures will require accelerating economic growth especially of the wage goods which have a direct bearing on the general price and the cost of living. Some restrictions on present consumption may help in improving saving and investment which may be necessary for accelerating the rate of economic growth in the long run.

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 4 Differential Equations Ex 4.5 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 4 Differential Equations Ex 4.5

Question 1.
\(\frac { d^2y }{dx^2}\) – 6\(\frac { dy }{dx}\) + 8y = 0
Solution:
Given (D² – 6D + 8) y = 0, D = \(\frac{d}{d x}\)
The auxiliary equations is
m² – 6m + 8 = 0
(m – 4)(m – 2) = 0
m = 4, 2
Roots are real and different
The complementary function (C.F) is (Ae^4x + Be^2x)
The general solution is y = Ae^4x + Be^2x

Question 2.
\(\frac { d^2y }{dx^2}\) – 4\(\frac { dy }{dx}\) + 4y = 0
Solution:
The auxiliary equations A.E is m² – 4m + 4 = 0
(m – 2)² = 0
m = 2, 2
Roots are real and equal
The complementary function (C.F) is (Ax + B) e^2x
The general solution is y = (Ax + B) e^2x

Question 3.
(D² + 2D + 3) y = 0
Solution:
The auxiliary equation is m² + 2m + 3 = 0
Here a = 1, b = 2, c = 3

The complementary function is
e^ax (Acosßx + Bsinßx)
∴ C.F = e^-x [Acos√2x + Bsin √2x]
∴ The general solution is
y = e^-x (Acos√2x + Bsin√2x)

Question 4.
\(\frac { d^2y }{dx^2}\) – 2k\(\frac { dy }{dx}\) + k²y = 0
Solution:
Given (D² – 2kD + k²)y = 0, D = \(\frac{d}{d x}\)
The auxiliary equations is m² – 2km + k = 0
⇒ (m – k)² = 0
⇒ m = k, k
Roots are real and equal
The complementary function (C.F) is (Ax + B) e^kx
The general solution is y = (Ax + B) e^kx

Question 5.
(D² – 2D – 15) y = 0
Solution:
The auxiliary equation is
m² – 2m + 15 = 0
m² + 3m – 5m – 15 = 0
m (m + 3) – 5 (m + 3) = 0
(m + 3) (m – 5) = 0
m = -3, 5
Roots are real and different
∴ The complementary function is
Ae^m₁x + Be^m₂x
C.F = Ae^-3x + Be^5x
∴ The general solution is
y = (Ae^-3x + Be^5x) ………… (1)
\(\frac { dy }{dx}\) = Ae^-3x (-3) + Be^5x (5)
\(\frac { dy }{dx}\) = -3Ae^-3x + 5Be^5x ………… (2)
\(\frac { d^2y }{dx^2}\) = 9Ae^-3x + 25Be^5x ……….. (3)
when x = 0; \(\frac { dy }{dx}\) = 0
-3 Ae° + 5Be° = 0
-3A + 5B = 0 ………. (4)
when x = 0; \(\frac { d^2y }{dx^2}\) = 2
Eqn (3) ⇒ 9Ae° + 25Be° = 2
9A + 25B = 2 ……… (5)
Solving equation (4) & (5)

Question 6.
(4D² + 4D – 3) y = e^2x
Solution:
The auxiliary equation is
4m² + 4m – 3 = 0
4m² + 6m – 2m – 3 = 0
2m (2m + 3) – 1 (2m + 3) = 0
(2m + 3) (2m – 1) = 0
2m = -3; 2m = 1
m = -3/2, 1/2
Roots are real and different
The complementary function is
Ae^m₁x + Be^m₂x

Question 7.
\(\frac { d^2y }{dx^2}\) + 16y = 0
Solution:
Given (D² + 16) y =0
The auxiliary equation is m² + 16 = 0
⇒ m² = -16
⇒ m = ± 4i
It is of the form α ± iβ, α = 0, β = 4
The complementary function (C.F) is e^0x [A cos 4x + B sin 4x]
The general solution is y = [A cos 4x + B sin 4x]

Question 8.
(D² – 3D + 2) y = e^3x which shall vanish for x = 0 and for x = log 2
Solution:
(D² – 3D + 2) y = e^3x
The auxiliary equation is
m² – 3m + 2 =0
(m – 1) (m – 2) = 0
m = 1, 2
Roots are real and different
The complementary function is
C.F = Ae^m₁x + Be^m₂x
C.F = A^x + Be^2x

when x = log 2; y = 0
Ae^{log 2} + Be^{2log 2} + \(\frac { e^{3xlog2} }{2}\) = 0
Ae^{log 2} + Be^{log (2)²} + \(\frac { e^{log2³} }{2}\) = 0
2A + 4B + \(\frac { 8 }{2}\) = 0
2A + 4B + 4 = 0
2A + 4B = -4 ……… (3)
Solving equation (2) & (3)
Eqn (2) × 2 ⇒ 2A + 2B = -1

Question 9.
(D² + D – 2) y = e^3x + e^-3x
Solution:
The auxiliary equation is
m² + m – 6 = 0
(m + 3) (m – 2) = 0
Roots are real and different
The complementary function is
C.F = Ae^m₁x + Be^m₂x
C.F = Ae^-3x + Be^2x

Question 10.
(D² – 10D + 25) y = 4e^5x + 5
Solution:
The auxiliary equation is
m² – 10m + 25 = 0
(m – 5) (m – 5) = 0
m = 5, 5
Roots are real and equal
C.F = (Ax + B) e^mx
C.F = (Ax + B) e^5x
P.I₍₁₎ = x. \(\frac { 4 }{2D-10}\) e^5x
Replace D by 5, 2D – 10 = 0 when D = 5

Question 11.
(4D² + 16D +15) y = 4e^{\(\frac { -3 }{2}\)}x
Solution:
The auxiliary equation is 4m² + 16m + 15 = 0
4m² + 16m + 10m + 15 = 0
2m (2m + 3) + 5 (2m + 3) = 0
(2m + 3) (2m + 5) = 0
2m = -3, -5
∴ m = -3/2, -5/2
Roots are real and different
C.F = (Ax + B) e^m₁x + Be^m₂x
C.F = Ae^{-3/2 x} + Be^{-5/2 x}

Question 12.
(3D² + D – 14) y – 13 e^2x
Solution:
The auxiliary equation is 3m² + m – 14 = 0
3m² – 6m + 7m – 14 = 0
3m (m – 2) + 7 (m – 2) = 0
(m – 2) (3m + 7) = 0
m = 2; 3m = -7
m = 2, -7/3
Roots are real and different
C.F = (Ax + B) e^m₁x + Be^m₂x
C.F = Ae^2x + Be^{-7/3 x}

Question 13.
Suppose that the quantity demanded Qd = 13 – 6p + 2\(\frac { dp }{dt}\) + \(\frac { d^2p }{dt^2}\) = and quantity supplied Qd = -3 + 2p where is the price. Find the equilibrium price for market clearence.
Solution:
For market clearance, the required condition is Qd = Qs

The auxiliary equation is
m² + 2m – 8 = 0
(m + 4) (m – 2) = 0
m = -4, 2
Roots are real and different

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Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Economics Guide Pdf Chapter 4 Consumption and Investment Functions Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Economics Solutions Chapter 4 Consumption and Investment Functions

12th Economics Guide Consumption and Investment Functions Text Book Back Questions and Answers

PART – A

Multiple Choice questions

Question 1.
The average propensity to consume is measured by
a) C\Y
b) C x Y
c) Y\C
d) C + Y
Answer:
a) C\Y

Question 2.
An increase in the marginal propensity to consume will:
a) Lead to consumption function becoming steeper
b) Shift the consumption function upwards
c) Shift the consumption function downwards
d) Shift savings function upwards
Answer:
a) Lead to consumption function becoming steeper

Question 3.
If the Keynesian consumption function is C = 10 + 0.8 Y then, if the disposable income is Rs 1000, What is the amount of total consumption?
a) ₹ 0.8
b) ₹ 800
c) ₹ 810
d) ₹ 081
Answer:
c) ₹ 810

Question 4.
If the Keynesian consumption function is C = 10 + 0.8 Y then when disposable income is Rs 100, What is the marginal propensity to consume?
a) ₹ 0.8
b) ₹ 800
c) ₹810
d) ₹0.81
Answer:
a) ₹ 0.8

Question 5.
If the Keynesian consumption function is C = 10 + 0.8 Y then, and disposable income is ₹ 100, what is the average propensity to consume?
a) ₹ 0.8
b) ₹ 800
c) ₹ 810
d) ₹ 50.9
Answer:
d) ₹ 50.9

Question 6.
As national income increases
a) The APC fall’s and gets nearer in value to the MPC
b) The APC increases and diverges in value from the MPC
c) The APC stays constant
d) The APC always approaches infinity.
Answer:
a) The APC fall’s and gets nearer in value to the MPC

Question 7.
An increase in consumption at any given level of income is likely to lead
a) Higher aggregate demand
b) An increase in exports
c) A fall in taxation revenue
d) A decrease in import spending
Answer:
a) Higher aggregate demand

Question 8.
Lower interest rates are likely to :
a) Decrease in consumption
b) increase the cost of borrowing
c) Encourage saving
d) increase borrowing and spending
Answer:
d) increase borrowing and spending

Question 9.
The MPC is equal to :
a) Total spending / total consumption
b) Total consumption / total income
c) Change in consumption/ change in income.
d) none of the above.
Answer:
c) Change in consumption/ change in income.

Question 10.
The relationship between total spending on consumption and the total income is the ………………………
a) Consumption function
b) Savings function
c) Investment function
d) aggregate demand function
Answer:
a) Consumption function

Question 11.
The sum of the MPC and MPS is ……………..
a) 1
b) 2
c) 0.1
d) 1.1
Answer:
a) 1

Question 12.
As income increases, consumption will ……………..
a) Fall
b) not change
c) fluctuate
d) increase
Answer:
d) increase

Question 13.
When the investment is assumed autonomous the slope of the AD schedule is determined by the …………………
a) marginal propensity to invest
b) disposable income
c) marginal propensity to consume
d) average propensity to consume.
Answer:
c) marginal propensity to consume

Question 14.
The multiplier tells us how many…………………… changes after a shift in
a) Consumption, income
b) investment, output
c) savings, investment
d) output, aggregate demand
Answer:
d) output, aggregate demand

Question 15.
The multiplier is calculated as
a) 1(1-MPC)
b) 1/ MPS
c) 1/ MPC
d) a and b
Answer:
d)a and b

Question 16.
If the MPC is 0.5, the multiplier is …………………
a) 2
b) 1/2
c) 0.2
d) 20
Answer:
a) 2

Question 17.
In an open economy import …………….. the value of the multiplier.
a) Reduces
b) increase
c) does not change
d) Changes
Answer:
a) Reduces

Question 18.
According to Keynes, investment is a function of the MEC and …………………
a) Demand
b) Supply
c) Income
d) Rate of interest
Answer:
d) Rate of interest

Question 19.
The term Super multiplier was first used by
a) J.R. Hicks
b) R.G.D Allen
c) Kahn
d) J.M. Keynes
Answer:
a) J.R. Hicks

Question 20.
The term MEC was introduced by.
a) Adam smith
b) J.M. Keynes
c) Ricardo
d) Malthus
Answer:
b) J.M. Keynes

PART – B (Two Mark Questions)

Answer the following questions in one or two sentences.

Question 21.
What is consumption function?
Answer:
The consumption function is a functional relationship between total consumption and gross national income.

Question 22.
What do you mean by a propensity to Consume?
Answer:
The propensity to consume refers to the income consumption relationship.

Question 23.
Define average propensity to consume (APC)
Answer:
Average Propensity to Consume: The average propensity to consume is the ratio of consumption expenditure to any particular level of income.” Algebraically it may be expressed as under:
Where, C = Consumption; Y = Income
APC = \(\frac{C}{Y}\)
Where, C = Consumption; Y = Income.

Question 24.
Define marginal propensity to consume (MPC)
Answer:
MPC may be defined as the ratio of the change in consumption to the change in income.
(°r)
MPC =ΔC / ΔY
ΔC = Change in consumption
ΔY = change in income

Question 25.
What do you mean by a propensity to save?
Answer:

1. Thus the consumption function measures not only the amount spent on consumption but also the amount saved.
2. This is because the propensity to save is merely the propensity not to consume.
3. The 45° line may therefore be regarded as a zero – saving line, and the shape and position of the C curve indicate the division of income between consumption and saving.

Question 26.
Define average propensity to save (APS)
Answer:
The average propensity to save is the ratio of saving to income.

Question 27.
Define marginal propensity to save (MPS).
Answer:
Marginal Propensity to Save (MPS): Marginal Propensity to Save is the ratio of change in saving to a change in income.
MPS is obtained by dividing change in savings by change in income. It can be expressed algebraically as MPS = \(\frac { \Delta S }{ \Delta Y } \)
∆S = Change in Saving; ∆Y = Change in Income
Since MPC + MPS = 1
MPS = 1 – MPC and MPC = 1 – MPS.

Question 28.
Define Multiplier.
Answer:
The multiplier is defined as the ratio of the change in national income to change in investment.
\(K=\frac{\Delta Y}{\Delta I}\)

Question 29.
Define Accelerator.
Answer:

1. “The accelerator coefficient is the ratio between induced investment and an initial change in consumption.”
2. Assuming the expenditure of ₹50 crores on consumption goods, if industries lead to an investment of ₹100 crores in investment goods industries, we can say that the accelerator is 2.
3. Accelerator = \(\frac { 100 }{ \Delta Y } \) = 2

PART – C

Answer the following questions in one paragraph.

Question 30.
State the propositions of Keynes’s psychological law of consumption.
Answer:
This law has three propositions:

1. when income increases, consumption expenditure also increases but by a smaller amount.
2. The increased income will be divided in some proportion between consumption expenditure and saving.
3. Increases in income always lead to an increase in both consumption and saving.

Question 31.
Differentiate autonomous and induced investment.
Answer:

Autonomous Investment

Induced Investment

• Independent Planned
•  Íncome inelastic Income elastic
• Welfare motive Profit motive

Question 32.
Explain any three subjective and objective factors influencing the consumption function.
Answer:
Subjective Factors:

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

Objective Factors:
1. Income Distribution:
If there is large disparity between rich and poor, the consumption is low because the rich people have low propensity to consume and high propensity to save.

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

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

Question 33.
Mention the differences between accelerator and multiplier effect.
Answer:

Question 34.
State the concept of the super multiplier.
Answer:

• The concept of a super multiplier was developed by Hicks. He has combined multiplier and accelerator mathematically and named it the super multiplier.
• The super multiplier is worked out by combining both consumption and induced investment.
• The super multiplier which includes induced investment is greater than the simple multiplier.

Question 35.
Specify the leakages of the multiplier.
Answer:

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

PART – D

Answer the following questions on a page.

Question 36.
Explain Keynes’s psychological law of consumption function with a diagram.
Answer:
Keynes’s psychological law of consumption function implies that there is a tendency on the part of the people to spend on consumption less than the full increment of income.
Assumptions:

1. Ceteris paribus
2. Existence of Normal conditions
3. Existence of a laissez-faire capitalist Economy

Propositions of the law:

1. When income increases, consumption expenditure also increases but by a smaller amount.
2. The increased income will be divided in some proportion between consumption expenditure and saving.
3. An increase in income always leads to an increase in both consumption and saving.
   

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

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

Proposition (2):
When income increases to 18 and 240 it is divided in some proportion between consumption by 170 and 220 and saving by 10 and 20 respectively.

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

Question 37.
Briefly explain the subjective and objective factors of consumption function?
Answer:
Subjective Factors:

1. The motive of precaution: To build up a reserve against unforeseen contingencies. e.g. Accidents, sickness
2. The motive of foresight: The desire to provide for anticipated future needs, e.g. Old age
3. The motive of calculation: The desire to enjoy interest and appreciation.
4. The motive of improvement: The desire to enjoy for improving the standard of living.
5. The motive of financial independence.
6. The motive of the enterprise (desire to do forward trading).
7. The motive of pride.(desire to bequeath a fortune)
8. The motive of avarice.(purely miserly instinct)

Objective Factors:
1. Income Distribution:
If there is large disparity between rich and poor, the consumption is low because the rich people have low propensity to consume and high propensity to save.

2. Price level:

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

3. Wage level:

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

4. Interest rate:

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

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

6. Consumer credit:

1. The availability of consumer credit at easy installments will encourage households to buy consumer durables like automobiles, fridges, computers.
2. This pushes up consumption.

7. Demographic factors:

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

8. Duesenberry hypothesis:
Duesenberry has made two observations regarding the factors affecting consumption.

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

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

Question 38.
Illustrate the working of Multiplier.
Answer:
Suppose the Government undertakes investment expenditure equal to Rs.100 crore on some public works, by way of wages, price of materials etc. Thus income of labourer and suppliers increases by Rs. 100 crore.

Suppose the MPC is 0.8 that is 80% A Sum of Rs. 80.crores is spent on consump¬tion. As a result, suppliers get an income of Rs. 80 crores. They in turn spend Rs. 64 crores. In this manner consumption expenditure and increase in income act in a chain-like manner.

The final result is Δy = 100 + 100 x \(\frac { 4 }{ 5 }\) + 100 x \(\left(\frac{4}{5}\right)^{2}\) + 100 x \(\left(\frac{4}{5}\right)^{3}\) or,
= 100 + 100 x 0.8 + 100 (0.8)² + 100 x (0.8)³
100 +80 + 64 + 51.2
500
(ie) 100 x 1/1 – 4/5
= 100 x 1/1/5
1000 x 5 = Rs. 500 crores
For instance if C = 100 + 0.8Y, I = 100,
Then Y = 100 + 0.8y + 100
0.2y = 200
Y = 200/ 0.2 = 1000 …………….. Point B
If I is increased to 110, then
0.2 Y = 210
Y – 210 / 0.2 = 1050 ………………….Point D
For Rs 10 increase in I, Y has increased by Rs,50
This is due to multiplier effect.
At point A, Y = C= 500
C = 100 + 0.8 (500) = 500; S = 0
At point B, Y = 1000
C = 100 + 0.8 (1000) = 900 : S = 100 = I
At point D, Y = 1050
C= 100 + 0.8 (1050) = 940 : S = 110 = I

when I is increased by 10, Y increases by 50
This is multiplier effect (K = 5)
k = \(\frac{1}{0.2}\) = 5

Question 39.
Explain the operation of the Accelerator.
Answer:
Operation of the Acceleration Principle:

1. Let us consider a simple example. The operation of the accelerator may be illustrated as follows.
2. Let us suppose that in order to produce 1000 consumer goods, 100 machines are required.
3. Also, suppose that the working life of a machine is 10 years.
4. This means that every year 10 machines have to be replaced in order to maintain the constant flow of 1000 consumer goods. This might be called replacement demand.
5. Suppose that demand for consumer goods rises by 10 percent (i.e. from 1000 to 1100).
6. This results in an increase in demand for 10 more machines.
7. So that total demand for machines is 20. (10 for replacement and 10 for meeting increased demand).
8. It may be noted here a 10 percent increase in demand for consumer goods causes a 100 percent increase in demand for machines (from 10 to 20).
9. So we can conclude even a mild change in demand for consumer goods will lead to wide change in investment.

Diagrammatic illustration:
Operation of Accelerator.

1. SS is the saving curve. II is the investment curve. At point E₁ the economy is in equilibrium with OY₁ income. Saving and investment are equal at OY₁ Now, investment is increased from OI₂ to OI₄.
2. This increases income from OY₁ to OY₃, the equilibrium point being E₃ If the increase in investment by I₂ I₄ is purely exogenous, then the increase in income by Y₁ Y₃ would have been due to the multiplier effect.
3. But in this diagram it is assumed that exogenous investment is only by I, I3 and induced investment is by I₃I₄.
4. Therefore, the increase in income by Y₁ Y₂ is due to the multiplier effect and the increase in income by Y₂ Y₃ is due to the accelerator effect.

Question 40.
What are the differences between MEC and MEI?
Answer:

12th Economics Guide Consumption and Investment Functions Additional Important Questions and Answers

I. Match the following

Question 1.
a) Y – 1) Consumption
b) C – 2) Income
c) S – 3) Investment
d) I – 4) Savings

Answer:
b) 2 1 4 3

Question 2.
a) MPC – 1) C+S
b) K – 2) ΔI/Δ\C
c) Y – 3) ΔC/ΔY
d) 13 – 4) 1
\(\text { 4) } \frac{1}{1-M P C}\)


Answer :
c) 3 4 1 2

Question 3.
a) APC – 1) ∆S/∆Y
b) MPC – 2) S/Y
c) APS – 3) ∆C/∆Y
d) MPS – 4) C/Y

Answer:
d) 4 3 2 1

II. Choose the correct pair.

Question 1.
a) Multiplier – Dusenberry
b) Psychological Law of Consumption – M.F.Khan
c) Consumption function – Constant in Longrun
d) Income Multiplier – J.M.Keynes
Answer:
d) Income Multiplier – J.M.Keynes

Question 2.
a) K – Accelerator
b) β – Multiplier
c) Consumption function – C= f (y)
d) Investment function – I = f (s)
Answer:
c) Consumption function – C= f (y)

Question 3.
a) K – ∆Y/∆I
b) K – \(\frac{1}{1-\mathrm{MPS}}\)
c) MEC – Flow concept
d) MEl – Stock concept
Answer :
a) K – ∆Y/∆I

Question 4.
a) MPS = ∆Y/∆S
b) APS = C/Y
c) MPC = ∆C/∆Y
d) APC = S/Y
Answer:
MPC = \(\mathrm{MPC}=\frac{\Delta \mathrm{C}}{\Delta \mathrm{Y}}\)

III. Choose the incorrect pair

Question 1.
a) Multiplier concept – – Mf.khan
b) Investment Multiplier – J.M.Clark
c) Income Multiplier – J.M.Keynes
d) Accelerator concept – J.B.Say
Answer:
b) Investment Multiplier – J.B.Say

Question 2.
a) Y – Total Income
b) C – Savings expenditure
c) I_A – Autonomous Investment
d) I_P – Induced private investment
Answer:
b) C – Savings expenditure

Question 3.
a) Consumption function – relation between income and consumption
b) Autonomous Investment – investment independent of change in Income
c) Super Multiplier – K and β interaction.
d) Investment function – relation between consumption and investment.
Answer:
d) Investment function – relation between consumption and investment.

IV. Choose the correct statement

Question 1.
a) The primary microeconomic objective is the acceleration of the growth of national income.
b) MPC is expressed in percentage and the MPC infraction.
c) Laissez-Faire exists in a Capitalist Economy.
d) Increase in rate of interest reduces savings.
Answer:
c) Laissez – Faire exists in capitalist Economy.

Question 2.
a) When the government reduces the tax the disposable income falls.
b) Autonomous investment does not depend on the national income.
c) There exists a negative relationship between the national income and induced investment.
d) Investment depended exclusively on the rate of interest.
Answer:
b) Autonomous investment does not depend on the national income.

Question 3.
a) In times of economic depression, the governments try to boost the induced investment.
b) Induced investment is not profit-motivated.
c) Autonomous investment is profit-motivated.
d) Marginal Efficiency of capital refers to the annual percentage yield earned by the last additional unit of capital.
Answer:
d) Marginal Efficiency of capital refers to the annual percentage yield earned by the last additional unit of capital.

V. Choose the incorrect statement

Question 1.
a) Multiplier is classified as static and Dynamic multiplier.
b) The accelerator expresses the ratio of the net change in investment to change in consumption.
c) The concept of super multiplier was introduced by J.M.Keynes.
d) The combined effect of the multiplier and the accelerator is also called the leverage effect.
Answer:
c) The concept of super multiplier was introduced by J.M.Keynes.

Question 2.
a) Marginal propensity to consume is the ratio of consumption to income.
b) Marginal propensity to consume is the ratio of change in consumption to change in income.
c) Average propensity to save is the Ratio of the saving to income.
d) Marginal propensity to save is the ratio of change in saving to change in income.
Answer:
a) Marginal propensity to consume is the ratio of consumption to income.

Question 3.
a) Super multiplier is the combined effect of the interaction of multiplier and accelerator.
b) Super multiplier includes both autonomous and induced investment.
c) The desire to secure liquid resources to meet emergencies is called liquidity preference.
d) The subjective factors that determine consumption function are real and measurable.
Answer:
d) The subjective factors that determine consumption function are real and measurable.

VI. Pick the odd one out:

Question 1.
a) The motive of precaution
b) The motive of transaction
c) The motive of enterprise
d) The motive of avarice
Answer:
b)The motive of transaction

Question 2.
a) Multiplier
b) Accelerator
c) Super multiplier
d) Consumption function
Answer:
d) Consumption function

Question 3.
a) Income multiplier
b) Tax multiplier
c) Investment multiplier
d) Employment multiplier
Answer:
a) Income multiplier

VII. Analyse the reason.

Question 1.
Assertion (A): The relationship between income and consumption is called as consumption function.
Reason (R): Change in Income should be equal to change in consumption.
Answer:
c) (A) is true but (R)is false.

Question 2.
Assertion (A): Keynes propounded the fundamental psychological law of consumption which forms the basis of the consumption function.
Reason (R): There is a tendency on the part of the people to spend on consumption less than the full increment of income.
Answer :
a) Assertion (A) and Reason (R) both are true, and (R) is the correct explanation of (A).

Options:
a) Assertion (A) and Reason (R) both are true, and (R) is the correct explanation of (A).
b) Assertion (A) and Reason (R) both are true, and (R) is not the correct explanation of (A).
c) (A) is true but (R)is false.
d) Both (A) and (R) are false.

VIII. Choose the best Answer.

Question 1.
Price level plays an important role in determining the ……………………
(a) Consumption function
(b) Income function
(c) Finance function
(d) Price function
Answer:
(a) Consumption function

Question 2.
Objective factors are the ………………………………………… factors which are real and measurable.
a) Internal
b) External
c) Capital
d) Production
Answer:
b) External

Question 3.
Keynes has divided factors influencing the consumption function into …………….
a) 4
b) 1
c) 2
d) 3
Answer:
c) 2

Question 4.
…………………… is influenced by demonstration effect.
(a) Investment
(b) Interest
(c) Expenditure
(d) Consumption
Answer:
(d) Consumption

Question 5.
…………………… is one of the key concepts in welfare economics.
a) Induced investment
b) Autonomous Investment
c) Motivated Investment
d) None of the above
Answer:
b) Autonomous Investment

Question 6.
In times of economic depression, the governments try to boost the ……………….
a) Induced investment
b) Induced Investment
c) Motivated Investment
d) All the above
Answer:
c) Motivated Investment

Question 7.
The formula for Multiplier

Answer:
\(K=\frac{\Delta Y}{\Delta I}}\)

Question 8.
The formula for accelerator

Answer:
\(\beta=\frac{\Delta I}{\Delta C}\)

Question 9.
The combined effect of the interaction of multiplier and accelerator is called ……………………
(a) Super accelerator
(b) Super multiplier
(c) Accelerator
(d) Multiplier
Answer:
(b) Super multiplier

Question 10.
The systematic development of the simple accelerator model was made by …………..
a) J.M.Clark
b) Hawtrey
c) J.R.Hicks
d) J.M.Keynes
Answer:
a) J.M.Clark

IX. Fill in the Blanks.

Question 1.

Answer :
C = 170, S = 60

Question 2.

Answer:
a) 1.11 b) 0.5 c) 4 d) 0.90 e) 0

X. 2 Mark Questions

Question 1.
Write “Propensity to consume” Equations?
Answer:

• The Average Propensity to Consume = \(\frac{c}{y}\)
• The Marginal Propensity to Consume = \(\frac{∆c}{∆y}\)
• The Average Propensity to Save = \(\frac{x}{y}\)
• The Marginal Propensity to Save = \(\frac{∆s}{∆y}\)

Question 2.
What is the investment function?
Answer:
The investment function refers to investment – interest rate relationship. There is a functional and inverse relationship between rate of interest and investment.

Question 3.
Define “Laissez-Faire” – Capitalist Economy?
Answer:
Existence of a Laissez-faire Capitalist Economy:
The law operates in a rich capitalist economy where there is no government intervention. People should be free to spend increased income. In the case of regulation of private enterprise and consumption expenditures by the State, the law breaks down.

Question 4.
What is the Marginal Efficiency of Capital?
Answer:
MEC refers to the annual percentage yield earned by the last additional unit of capital.

Question 5.
Mention the factors that MEC depends on.

• The prospective yield from a capital asset.
• The supply price of a capital asset.

Question 6.
What is autonomous consumption?
Answer:
Autonomous consumption is the minimum level of consumption or spending that must take place even if a consumer has no disposable income, such as spending for basic necessities.

Question 7.
Define “Autonomous consumption”?
Answer:
Autonomous Consumption:
Autonomous consumption is the minimum level of consumption or spending that must take place even if a consumer has no disposable income, such as spending for basic necessities.

Question 8.
Name the factors affecting MEC.
Answer:

• The cost of the capital asset.
• The expected rate of return during its lifetime.
• The market rate of interest.

Question 9.
State Keynes psychological law of consumption.
Answer:
The law implies that there is a tendency on the part of the people to spend on consumption less than the full increment of income.

Question 10.
What are objective factors?
Answer:
Objective factors are the external factors which are real and measurable.

Question 11.
What is the Leverage Effect?
Answer:
The combined effect of the multiplier and the accelerator is called the leverage effect.

Question 12.
What is the Marginal Efficiency of Investment?
Answer:
MEI is the expected rate of return on investment as additional units of investment are made under specified conditions and over a period of time.

Question 13.
Differentiate Positive and Negative Multiplier Effects.
Answer:
Positive Multiplier: When an initial increase in an injection leads to a greater final increase in real GDP.
Negative Multiplier: When an initial increase is an injection leads to a greater final decrease in real GDP.

Question 14.
Mention the uses of Multiplier.
Answer:

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

XI. 5 Mark Questions

Question 1.
Name the determinants of investment functions?
Answer:

• Rate of Interest
• Level of Uncertainty
• Political Environment
• Rate of growth of population
• The stock of Capital goods
• The necessity of new products
• Level of income of investors
• Inventions and innovations
• Consumer demand
• The policy of the state.

Question 2.
Explain the Keynes Psychological Law’ of consumption assumptions?
Answer:
Keynes’s Law is based on the following assumptions:
1. Ceteris paribus (constant extraneous variables):
The other variables such as income distribution, tastes, habits, social customs, price movements, population growth, etc. do not change and consumption depends on income alone.

2. Existence of Normal Conditions:

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

3. Existence of a Laissez-faire Capitalist Economy:

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

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 4 Differential Equations Ex 4.4 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 4 Differential Equations Ex 4.4

Question 1.
\(\frac { dy }{dx}\) – \(\frac { dy }{dx}\) = x
Solution:

The required solution is

Question 2.
\(\frac { dy }{dx}\) + y cos x = sin x cos x
Solution:
It is of the form \(\frac { dy }{dx}\) + Py = Q
Here P = cos x; Q = sin x cos x
∫Pdx = ∫cos x dx = sin x
I.F = e^∫pdx = e^sinx
The required solution is
Y(I.F) = ∫Q (IF) dx + c
Y(e^sinx) = ∫Q (I-F) dx + c
y (e^sinx) = ∫sin x cos x e^sinx dx + c

Question 3.
x\(\frac { dy }{dx}\) + 2y = x⁴
Solution:
The given equation can be reduced to
\(\frac { dy }{dx}\) + \(\frac { 2y }{x}\) = x³
It is of the form \(\frac { dy }{dx}\) + Py = Q
Here P = \(\frac { 2 }{x}\); Q = x³
∫pdx = ∫\(\frac { 2 }{x}\)dx = 2∫\(\frac { 1 }{x}\)dx = 2log x – log x²
I.F = e^∫Pdx = e^logx² = x²
The required solution is
y(I.F) = ∫Q (IF) dx + c
y(x²) = ∫x³ (x²) dx + c
x²y = ∫x⁵ dx + c
x²y = \(\frac { x^6 }{6}\) + c

Question 4.
\(\frac { dy }{dx}\) + \(\frac { 3x^2 }{1+x^3}\) = \(\frac { 1+x^2 }{1+x^3}\)
Solution:

Question 5.
\(\frac { dy }{dx}\) + \(\frac { y }{x}\) = xe^x
Solution:
\(\frac { dy }{dx}\) + py = Q
Here P = \(\frac { 1 }{x}\); Q = xe^x
∫Pdx = ∫\(\frac { 1 }{x}\) dx = log x
I.F = e∫Pdx = e^log = x
The required solution is
y (I.F) = ∫Q (I.F) dx + c

Question 6.
\(\frac { dy }{dx}\) + y tan x = cos³ x
Solution:
It is of the form \(\frac { dy }{dx}\) + Py = Q
Here P = tan x; Q = cos³ x
∫Pdx = ∫tan x dx = ∫\(\frac { sin x }{cos x}\) dx = -∫\(\frac { -sin x }{cos x}\) dx
= -log cos x = log sec x
I.F = e^∫Pdx = e^{log sec x} = sec x
The required solution is
y(I.F) = ∫Q(I.F) dx + c
y (sec x) = ∫cos³x (sec x) dx + c
y(sec x) = ∫cos³x \(\frac { 1 }{cos x}\) dx + c
y (sec x) = ∫cos²x dx + c
y (sec x)= ∫(\(\frac { 1+cos 2x }{2}\)) dx + c
y (sec x) = \(\frac { 1 }{2}\) ∫(1 + cos2x) dx + c
y (sec x) = \(\frac { 1 }{2}\) [x + \(\frac { sin2x }{2}\)] + c

Question 7.
If \(\frac { dy }{dx}\) + 2y tan x = sinx and if y = 0 when x = π/3 express y in terms of x
Solution:
\(\frac { dy }{dx}\) + 2y tan x = sinx
It is of the form \(\frac { dy }{dx}\) + Py = Q
Here P = 2tan x ; Q = sin x
∫Pdx = ∫2 tan x dx = 2∫tan xdx = 2 log sec x
log sec² x
I.F = e^∫Pdx = e^log(sec²x) = sec² x
The required solution is
y(I.F) = ∫Q(I.F) dx + c
y (sec² x) = ∫sin x (sec²x) dx + c
y(sec²x) = ∫sin x(\(\frac { 1 }{cos x}\)) sec x dx + c
y sec²x = ∫(\(\frac { sin x }{cos x}\)) sec x dx + c
y(sec²x) = ∫tan x sec x dx + c
⇒ y(sec²x) = sec x + c ………. (1)
If y = 0 when x = /3, then (1) ⇒
0(sec²(π/3)) = sec(π/3) + c
0 = 2 + c
⇒ c = -2
∴ Eqn (1) ⇒ y sec²x = sec x – 2

Question 8.
\(\frac { dy }{dx}\) + \(\frac { y }{x}\) = xe^x
Solution:
It is of the form \(\frac { dy }{dx}\) + Py = Q
Here P = \(\frac { 1 }{x}\); Q = xe^x
∫Pdx = ∫\(\frac { 1 }{x}\) dx = log x
I.F = e^∫Pdx = e^{log x} = x
The required solution is

Question 9.
A bank pays interest by contionous compounding, that is by treating the interest rate as the instantaneous rate of change of principal. A man invests Rs 1,00,000 in the bank deposit which accures interest, 8% over year compounded continuously. How much will he get after 10 years?
Solution :
Let P(t) denotes the amount of money in the account at time t. Then the differential equation govemning the growth of money is
\(\frac { dp }{dt}\) = \(\frac { 8 }{100}\)p = 0.08 p
⇒ \(\frac { dp }{p}\) = 0.08 dt
Integrating on both sides
∫\(\frac { dp }{p}\) = ∫0.08 dt
log_e P = 0.08 t + c
P = e^{0.08 t} + c
P = e^{0.08 t}. e^c
P = C₁ e^{0.08 t} ………. (1)
when t = 0, P = Rs 1,00,000
Eqn (1) ⇒ 1,00,000 = C₁ e°
C₁ = 1,00,000
∴ P = 100000 e^{0.08 t}
At t = 10
P= 1,00,000 . e^0.08(10)
= 1,00,000 e^0.8 {∵ e^0.8 = 2.2255}
= 100000 (2.2255)
p = Rs 2,25,550