( jiyg;gpw;F fPNo cs;s ypq;if fpspf; nra;J FOtpy; ,izaTk;!

 Padasalai's NEWS - Group

https://t.me/joinchat/NIfCqVRBNj9hhV4wu6_NqA

 Padasalai's Channel - Group

https://t.me/padasalaichannel

 Lesson Plan - Group

https://t.me/joinchat/NIfCqVWwo5iL-21gpzrXLw

 12th Standard - Group

https://t.me/Padasalai_12th

 11th Standard - Group

https://t.me/Padasalai_11th

 10th Standard - Group

https://t.me/Padasalai_10th

 9th Standard - Group

https://t.me/Padasalai_9th

 6th to 8th Standard - Group

https://t.me/Padasalai_6to8

 1st to 5th Standard - Group

https://t.me/Padasalai_1to5

 TET - Group
https://t.me/Padasalai_TET

 PGTRB - Group
https://t.me/Padasalai_PGTRB

 TNPSC - Group
https://t.me/Padasalai_TNPSC
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
aad a
d a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w wwww wwww wwww www w

SHRI KRISHNA ACADEMY

i .O . rgrg
O i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww wwww w ww
w
ww BOARD w EXAM
w (10,+1,+2) ww,NEET AND JEEww COACHING CENTRE ww
i .SBM
O . rgrg SCHOOL CAMPUS,TRICHY
O i . O . rgrg
O iMAIN
. O . rgrg ROAD,NAMAKKAL
O i . O . rgrg
O
a i a i a i a i
a saaslala a saaslala a saaslala a saaslala a saasla
ww
a
.P.Pa
d d
ww
CELL:9965531727-9443231727
a
.P.Pa
d d
ww
a
.P.Pa
d d
ww
a
.P.Pa
d d
ww
a
.P.Pa
d d
ww
ww +1 COMMON w w
w w QUARTERLY w ww
w EXAMINATION w ww
w - SEP - 2019 w w w w
SUBJECT:
i . O . rgrg
ECONOMICS
O i . O . rgrg
O i . O . rgrg
O MARKS
i . O . rgrg : 90
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.Q.
P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w ww
CONTENT
w w ww MARKw w w
www www www www www
NO
i .O . rgrg
O i .O . rgrg PART-A
O i .O . rgrg
O i .O . rg20X1=20
O rg
l a a i l a a i l a a i l a a i
d d
a l
I. asaasCHOOSE THE CORRECT
d a
d
l
saasa ANSWER: d a
d saasa l
d a
d saasa l
d a
d saasla
a1a c) Robbins
.P.P aa
.P.P aa
.P.P aa
.P.P 1 ww aa
.P.P
w ww
w w ww
w wwww wwww w w
ww ww ww ww ww
2 d) A system where persons buy and sell goods directly or indirectly 1
r gr g rg r g r gr g r gr g
ia.Oi.O
laalGossen’s l alia.Oi.O l alia.Oi.O l alia.Oi.O 1
3 sasc)
d a
d a first law
d a
d sof
aas aconsumption
d a
d saas a
d a
d saas a
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w 4 b) Maximum w ww
w wwww wwww 1
w ww
w
ww ww ww ww ww
5 d) iMarashal
. O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg 1
O
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
d a
d d a
d d a
d d a
d d a
d
.P.Pa d) Negativelyww
a 6 .sloped
a
PPa a
.P.Pa a
.P.Pa 1 a
.P.Pa
ww
ww
ww
wwww . wwwwww
wwwwww
wwwwww
7 d) Land and Labour 1
r gr g r gr g r gr g r gr g
8 sasc) ia.Oi.O to scale alaalia.O
laalReturns i.O a laalia.Oi.O a laalia.Oi.O 1 asla
d a a d a sa s d a sa s d a sa s d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w 9 b) Positive w w w w ww w ww 1
w w w
www www www www www
10 b) iEconomics
.O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg 1
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a11a c) TFC/Q
.P.P aa
.P.P .P.Paa .P.Paa 1 .PP aa
w ww
w w ww
w wwww wwww w ww.
w
ww ww ww ww ww
12 b) Planning 1
r gr g r gr g r gr g r grg
ia.O
laalAR i.O l alia.Oi.O l alia.Oi.O l alia.Oi.O 1
13 sasc)
d a
d a d a
d saas a
d a
d saas a
d a
d saas a
d a
d saasla
aa
.P.P aa
.P.P .P.Paa .P.Paa aa
.P.P
w ww
w 14 d) b and c w ww
w wwww wwww 1
w ww
w
ww ww ww ww ww
15
i . O . rgrg
c) Advertisement
O cost i.O . rgrg
O i . O . rgrg
O i . O . rgrg 1
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
ww.P.Pa d) Marashallww
a16 a
.P.Pa a
.P.Pa
ww
a
.P.Pa
ww
1
ww
a
.P.Pa
ww
ww w w
w w wwww wwww w w
w1 w
17 b) Organization
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
18 sasb) l a a i
alMarashall l
asala a i l
asala a i l
asala a i 1 asla
d a a d a sa d a s a d a s a d a s a
a ad
.P.P a ad
.P.P .P.Pa ad .P.Pa ad a ad
.P.P
w w w 19 b) Co existence
w w w of public and w
private
w w sectors w w w w1 w w
www www www www www
20
.O . rgrg
b) iJawaharial
O Nehru i .O . rgrg
O i .O . rgrg
O i .O . rgrg 1
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d adsaasa l
d adsaasa l
d adsaasla
aa
.P.P aa
.P.P .P.Paa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
aad a
d a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww .P.P ww.P.P ww.P.P ww.P.P
w
ww w www w wwww www w www w
II.
i .O . rgrg
O i
PART-B(
.O . Orgrg ANY SEVEN) i.O.O rgrg i .O . rgrg
O 7X2=14
l a a i l a a i l a a i l a a i
21
d a
d
l
saasa Engel‟s Lawd“adsaThe l
asa proportion of total
d a
d
asa l
saexpenditure incurredd a
d saasa
on
l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w w ww
w wwww w ww
w w
2 ww
w
ww food wwitems declines as totalww expenditure (which iswproxy w for ww
O grg
rincome) O rgrg O rgrg O rgrg
a i . i . O goes on increasing”
a i . i . O a i . i . O a i . i . O
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww 22 Giffen wwwgoods:
w wwww wwww wwww
ww ww ww ww ww
i . O . ri)grgThe Giffen good iis.O.typically
O rgrg
O an inferior good i . O . rgrisg an exception to i.O.O
O rgrg 2
l
asala a i l
asal a a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P the law of a ad
.P.demand.
P .P.Pa ad a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
ii) A Giffen goods is typically an inferior product that does not
.O grg
rhave .O rgrg .O rgrg .O rgrg
l a ia i . O easily available l a ia isubstitutes.
. O l a ia i . O l a ia i . O
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.an
P aa
.P.P aa
.P.P
w ww
w iii) Thew wunique
w w characteristicwthat www increase in price w wactually
w w w ww
w
ww ww ww ww ww
increases the quantity of the good that is demanded
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
23 l a a i The production function:
l a a i l a a i l a a i 2
d a
d saasa l
d a
d sa asa l
d a
d sa asa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.relationship
P aa
.P.P aa
.P.P
w ww
w Production
w ww
w function refers toww the
ww among w w
wunits
w of the w ww
w
ww ww ww ww ww
factors
rgrg or production (inputs)
rgrg and the resultant quantity
rgrg of a good rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
saaslala produced (output) saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww .P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww wwww wwww wwww wwww
24 The reasons for upward sloping supply curve: 2
r g rg r gr g r grg r gr g
s aslaalia.Oi.Oi) The price of the
s as
O
lia. i.O
laacommodity increases, s aslaa OO
lia. i.quantity
the supply of
s aslaalia.O
the i.O
s asla
d
a ad a a d
a ada a d
a ada a d
a ada a d
a ada a
w .P.P
w w w.P.P w .P.P
w w .P.P
w w .P.P
w
w
www commodity
w
www is also increase. w
www w
www w
www
i .O . rii)
O grgThus the supply curve
i .O . rgrghas appositive slope
O i .O . rfrom
Ogrg left to right. .OO
i . rgrg
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
a25a
.P.P aa
.P.P .P.Paa aa
.P.P 2 ww
aa
.P.P
w ww
w w ww
w wwww w ww
w w w
ww ww
Marginal cost : ww ww ww
i .O . ri)grgMarginal cost is the
O i .O . rgrg
addition
O made to thei.total O . rgrgcost by the
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa production dof a
d
l
asaadditional unit of aascommodity.
saan d d a asa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w ii) MCw w
w w
=TC -TC wwww w ww
w w ww
w
ww ww n n n-1 ww ww ww
26 i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala Price -taker: d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.Pa perfect competition
.Punder a
.P.Pais price taker, notwaw a
.Pa
.Pprice- a
.P.Pa
wwww i) A firm
w ww
w wwww w w w ww
w
ww w
maker. w ww ww ww2
. O O grgIt takes the price .of
rii) O O grgproduct from the.O
rthe rgrg
industry.
O . O rgrg
O
l
asala ia i . l
asal a ia i . l
asala ia i . l
asala ia i . asla
27
d a sa d a sa d a s a d a sa d a s a
a ad
.P.P a ad
Excesswcapacity:
.P.P .P.Pa ad a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w
www www www www www
Excess capacity is the difference between the optimum output that
. O rgrg
O . O rgrg
O . O rgrg
O . O rgrg 2
O
i i . can be produced and i the
i . actual output produced
i i . by firm. i i .
d a
d saaslaala d a
d saaslaala d adsaaslaala d a
d saaslaala d adsaasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a d
aa ad a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w wwww wwww www w www w
28
i .O . rgrg
O i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i The meaning of a i
liquidity
l a preference. l a a i l a a i
d adsaasa l
d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w
ww
ww
w (i) Liquidity
wwwwww preference means
wwwwwthe
w preference of the
www people
ww
w to hold www ww
w

i . O . rwealth
O grg in the form of.Oliquid
i . rgrg cash.
O i . O . rgrg
O i . O . rgrg 2
O
a i a i a i a i
d a
d saaslala (ii) other nondadliquid saaslalaassets like bonds, d a
d
aslala
sasecurities bills of saaslala
exchange,
d a
d d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww w ww
w w ww
w
ww w
land wbuilding, gold etc. ww w w ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l a a i l a a i l a a i l a a i asla
29asaasal a saasal a sa asal a saasal a sa
d
a ad The meaning d
a adof Economic Growth. d
a ad d
a ad d
a ad
w .P.P
w ww.P.P ww.P.P w .P.P
w w .P.P
w
w
www w
www w
www w
www w
www
(i) A country‟s economic growth is usually measured by national
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa income indicated d a
d
l
saasaby gross domesticdproduct. a
d saasa l
d a
d saasa l 2
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w (ii) The
wwwwGDP is the total wwww
monetary value of the goods
w wand
w w services w ww
w
ww ww ww ww ww
i .O . rproduced
O grg by that country
i .O . rgrgover a specific period
O i .O . rgrof
O g time (usually one
i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa year) d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww wwww w ww
w w ww
w
ww ww ww ww ww
30
i . O . rEconomics
O grg
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
saaslala i) The word d„Economics‟ saaslala la
aslaancient saaslala saasla

Padasalai
d a
d a
d comes from
d a
d sathe Greek d a
d d a
d
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww w ww
w wwww w ww
w 2w
w ww
ww oikonomikos.
w w ww w w ww
. O O grgThe term „Economics‟
rii) . O rgrgmeans “Management
O . O rgrof
O g household”. .O.O rgrg
l
asala ia i . l
asala ia i . l
asala ia i . l
asala ia i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad Economy‟ is renamed
iii) Thew„Political
.P.P a ad as economics..P.P
.P.P a ad a ad
.P.P
w w w w w w ww w w w w w w
www www www www www
III
i .O . rgrg
O i
PART-C(
.O . rgrg ANY SEVEN) i.O.O
O rgrg i .O . rg7X3=21
O rg
l a a i l a a i l a a i l a a i
31d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww w ww
w w ww
w
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg 3
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww ww ww
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a s a d a sa d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w ww w w w w w w
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d adsaasa l
d ad saasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a d
aa ad a aad a
d a aad a
d a aad a
d
ww.P.P ww .P.P ww.P.P ww .P.P ww.P.P
w
ww w w
ww w w
ww w www w w
ww w
32 The .O Ogrg
rrelationship between .O O grg
rmarginal utility andi.O rgrg utility
total
O .O rgrg
O
l a ia i . l a ia i. l a a i . l a ia i .
d ad
l
saasaSNo. d
MARGINALad
l
saasa UTILITY d a
d
l
saasaTOTAL UTILITY d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww 1 ww Marginal utility wwis the Total utility ww refer to the ww
i . O . rgrg addition made
O i . O . rgto
O rg the total sum
i . O . Ogrgutilities of all .OO
rof i . rgrg
a i a i a i a i
d a
d saaslala utilityd a
d
aslalaconsuming oneasaaslaunits
saby d d
la of a commodity
d a
d saaslala 3 d a
d saasla
a
.P.Pa a
.P.Paunit of a commodity a
.P.Pa a
.P.Pa a
.P.Pa
wwww www w
more wwww consumed wwww wwww
ww ww ww ww ww
rgrg (MUn = TUni.O - TUrgrgn-1) (TU r=gΣg 𝑴𝑼 ) rgrg
i . O
i . O i . O i . O
i . O r i . O
i . O
s l a
asal2 a It decliness l
asala a s l a a
asaItl increases s l
asala a s asla
d
a ada a d
a ada a d
a ada a d
a ada a d
a ada a
w .P.P
w 3 wIt.P
w .P
reaches zero w .P.P
w It reaches w .P.P
maximum
w w .P.P
w
w
www w
www w
www w
www w
www
4 rg g It becomes negative rgrg It declines
rgrg rgrg
i . O
i . O r i . O
i . O i .Oi . O i .Oi . O
33 l al a
saasa The functions sof l al a
asaEntrepreneur: asaasa l al a saasal al a saasla
aad a
d aad a
d a aad d aad a
d aad a
d
ww.P.P w .P.P
w w .P.P
w w w.P.P w .P.P
w
w
ww w  Initiation:
w
ww w w w
An organizerwiswthe initiator of the business, www w w
ww w
.O O
rgrgInnovation: A successful .O rgrg entrepreneur isi.O
O rgrg an innovator. i.O.O
always
O rgrg
l a ia i . l a ia i . l a a i . l a a i
d a
d
l
saasa  Coordination: d a
d saasAn l
a organizer applies
d a
d
l
saaasparticular
a combination
d a
d saasaof l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w the
w ww
w w ww
w w ww
w 3
w ww
w
ww ww ww ww ww
rgrgfactors of productionrgrg rgrg rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
saaslala  Control, Direction saaslala and Supervision: a
slalorganiser aslala saasla

Padasalai
d a
d d a
d d a
d saaAn controls
d a
d saso d a
d
a
.P.Pa that a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
 nothing prevents the organisation from achieving its goal.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
s l
asala a i  Risk-taking s andl
asala a i
Uncertainty-bearing: s l
asala a i
s l
asala a i
s asla
d
a ada a d
a ada a d
a ada a d
a ada a d
a ada a
w .P.P
w w .P.P
w w .P.P
w w w.P.P w .P.P
w
w
www 34 w
www w
www w
www w
www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg 3
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a s a d a s a d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d adsaasa l
d adsaasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w w
ww w www w www w w
ww w
35 The i .O . rgrg
meaning
O of selling cost i .O . Orgrg an example. i.O
with . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d ad
l
saasa1. It was Chamberlin d a
d
l
saasawho introduceddthe a
d
l
saasanalysis
a of selling d a saasa
costs.
d
l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww 2. Selling wwcosts play the key role ww in monopolistic ww ww
competition.
O rgrg
O The firms O havergrgto compete to promote
O O rgrg their
O O rgrg
O
a i . i .
la by spending on a i . i . a i . i . a i . i .
a saaslasale a ala
saasladvertisements anda aslala
sapublicity. a saaslala a saasla
a d d a d d a d d a d d a d d
ww.P.Pa 3. Thus, ww
cost .Paadvertisementwpublicity
.Pon a
w.P.P and salesmanship ww.P.Pa ww.P.Pa
ww
ww w
ww w wwww wwww w
3w
ww
ads to
i . O . rgrgthe demand of the
O i . O .
product.
rgrg
O i . O . rgrg
O i . O . rgrg
O
l a
asa4. a i
l In selling costs we l a
asainclude
l a i l a a i
the salariessasofalsales persons, l
asala a i asla
d a sa d a sa d a a d a sa d a sa
a ad allowances .to
.P.P P.P ad
aretailers to display .the
P.P d
a aproducts etc. besides
.P.P d
a athe a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
advertisements. Advertisement expenditure includes costs
incurred
i .O . rgrg for advertising
O i .O . rgrnewspapers
in
O g and i . rgrg
magazines,
.O O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a saasa l
d a saasa l
d a saasa l
d a saasa l
d a saasla
aa
.P.P d televisions, .radio, a a cinema slides etc.
d aa d aa d aa d
w ww
w w wwP.P
w w ww
w
.P.P
w ww
w
.P.P
w ww
w
.P.P
ww 36 ww
The relationship between ACwand w MC. ww ww
i .O . rg1.
O rg When AC is falling, i .O . Ogrg lies below AC. .OO
rMC i . rgrg i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P 2. When AC
aa
.P.P becomes constant, MC
aa
.P.P also becomes equal to
aa
.P.P it. aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww 3.wWhen
w AC starts increasing, ww MC lies above thewAC. w ww
i . O . rg4.
O rgMC curve alwaysi.O cuts
. rgrgAC at its minimum
O i . O . rgrg from below. i.O.O
point
O rgrg 3
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww ww
ww wwww wwww ww
ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d d
l
37asaasaKinds of wages. asaasa
d d
l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
Nominal
w Wages or Money w wWages.
w w w ww
w w ww
w
ww ww ww ww ww
Nominal wages are referred to the wages paid in terms
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala ofmoney dadsaaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww Realwwww
Wages wwww wwww wwww
ww ww ww ww ww
3
i . O . rgReal
O r g wages are the.O
i
wages
. rgrg paid in termsi.of
O O . rgoods
O grg and services..OO
i . rgrg
a saaslaalai Piece Wages a saaslaalai a saaslaalai a saaslaalai a s aasla
d
a ad d
a ad d
a ad d
a ad d
a ad
w .P.P
w Wages w .P.P
that
w are paid on the w .P.P
basis
w of quantum of work
w .P.P
w done. w .P.P
w
w
www w
www w
www w
www w
www
Time Wages
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i Wages that are paid
l a a i on the basis of thel a a i
amount of time. l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w ww ww www w www w w
ww w
38 Short
i .O . rgrnote
O g on village sarvodhaya.
i .O . Orgrg i .O . rgrg
O i .O . rgrg 3
O
l a a i l a a i l a a i l a a i
d adsaasa l
1. According d a
d
asa
sato l
Gandhi, ―Real India
d a
d
asa
sawas l
to be found in d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww
villages and not in towns w ww
or
w cities.‖ w ww
w w ww
w
ww ww ww ww ww
. O . rgr2.
O g So he suggested.Othe . rgrgdevelopment of iself-sufficient,
O . O . rgrg
O self- .OO
. rgrg
a i i a i i a i a i i
d a
d saaslala dependent
d a
d
aslala
savillages. d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa is a Sanskritwterm a
.PPa a
Pa or
.P.uplift' a
.P.Pa
ww
ww
ww 3. Sarvodaya
ww wwww
wwwww. meaning 'universal wwwwww ww
ww
ww
'progress of all'.
. O r
O gr g . O rgrg
O . O rgrg
O . O rgrg
O
l
asala ia i . 4. The Sarvodaya l
asala ia Movement
i . has as its
l
asala itarget
a i . the l
asala ia i . asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad of a whole network
establishment
.P.P a adof such self- .P.P
.P.P a ad a ad
.P.P
w w w w w w w w w w w w w w w
www www
supporting village communities. www www www
i .O . rgr5.
O g According to Gandhi,
i .O . rgrg The needs of the
O i .O . rgrg will be
village
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
determined d a
d by
l
saasathe people of thedvillage a
d
l
saasa themselves, dadsaasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w
through
ww w Village Council,wrepresentativew w
w w of thewwholew w
w w w w
w w
ww ww w w ww
i . O . rgrvillage.
O g
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d d a
l
39asasaAccording to Clark,
d a
d
l
saasathe following five d a
d samain l
asa changes are taking
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w place wwwin
w a dynamic societyw ww
w wwww w ww
w
ww ww ww ww ww
. O r
O g1.
r g Population is increasing
. O r
O grg . O r
O grg . O r
O grg 3
aslaaliai. aslaaliai. aslaaliai. aslaaliai. saasla

Padasalai
d a
d sa d a
d sa d a
d sa d a
d sa d a
d
a
.P.Pa 2. Volume .P.Pof
a a Capital is increasing a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
3. Methods of production are improving
. O r
O grg . O rgrg
O . O rgrg
O . O rgrg
O
l
asala ia i . 4. Forms of a l a
industrial
asal ia i . organization l a i
changing
asal a i . l
asala ia i . asla
d a sa d sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w 5. The
w w w
wants of consumer w w
arew multiplying w ww w w w
www www www www www
40 Extension
.O . rgrg and contraction
O .O .of
rgrdemand
O g .O . rgrg
O .O . rgrg
O
l a ia i l a ia i l a ia i l a ia i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww w ww
w wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww w ww
w wwww w
3 ww
w
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a s a d a sa d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w ww w w w
www The changes wwwin the quantity demanded www for a commodity wwwdue to the www
.O rgrg
O .O rgrg
O .O rgrg
O .O rgrg
O
change
l a ia i . in its price alone l a iare
a i . called ―Extension l aand
ia i . Contraction of l a ia i .
d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasa l
d adsaasla
a a Demand
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww w ww
w wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal a l a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a d
aa ad a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w www w www w wwww www w
IV
i .O . Orgrg i .O . Orgrg PART-D i .O . rgrg
O i .O . rgrg
O 7X5=35
l a a i l a a i l a a i l a a i
41
d ad
l
saasaThe properties of d ad saasa
iso-quants
l
with the a
help
d d saasof
a l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w diagrams. w w
w w w w
w w wwww w w
w w
ww ww Meaning ww ww ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
aAn i iso-quant curve can a be i defined as the locus a i
of points representing a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa various combinations a
.P.Pa of two inputs a
.Pa and labour w
capital
.P a
.P.Pathe
yielding a
.P.Pa
wwww w ww
w w ww
w www w ww
w
ww same output. ww w w ww ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l a a i
l iso-quant is also
asaThe l a a i
al as the ―EqualaProduct
ascalled l a a i
asal Curve‖ or theasaasal l a a i asla
d a sa d a s a d sa d 5 d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w ―Product w w
Indifference
w Curve w w w w ww w w w
www www www www www
Properties
i .O . Orgrg of Iso-quanti.Curve O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa1. The iso-quantdcurve a
d
l
saasa has negative slope. d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww 2. Convex ww to the origin. ww ww ww
3.
i .O Non
. Orgrginter-section of iIso-quant.O . rgrg curves.
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa4. An upper iso-quant d a
d
l
saasacurve representsdaadshigher a
l
asa level of output.asaasa
d d
l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww 5. Iso-quant ww curve does not touch ww either X axis or Y axis. ww . ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww wwww wwww ww
ww ww
ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i l
asal a a i l
asala a i l
asala a i asla
d a sa d a s a d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w ww w w w
www www www www www
i .O . Orgrg i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww ww ww ww ww
i .O . Orgrg i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww ww ww ww ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww ww ww ww ww
ww ww ww ww ww
i . O . Orgrg i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asal a a i (OR) l
asala a i l
asala a i asla
d a sa d a s a d a s a d a s a d a s a
a ad
.P.P a ad
.P.P a ad
P.P
.MR a ad
.P.P a ad
.P.P
w w w The w w
relationship
w between AR w
and
w w curves under w ww w w w
www www www www www
various rgrg price conditions. Average
rgrg Revenue rgrg rgrg
l a ia. O
i . O l a ia. O
i . O l a ia.Oi . O l a ia.Oi . O
d a
d
l
saasaAverage revenue d a
dissaasthe l
a revenue per unit
d ad
l
asathe commodity sold.
saof d ad
l
saasIta is d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w www w ww
w
ww ww ww ww ww
i .O . Orgrg i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P .P.P
ww ww.P.P ww.P.P ww.P.P
w
ww w ww ww ww ww ww ww www w

i . rgrg by dividing ithe

calculated
.O O .O . Orgtotal
rg revenue by the i .O . rgrg
number
O of units sold. i .O . rgrg
O
l a a i l a a i l a a i l a a i
d ad
l
saasaAR = TR / Q dadsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww wwww wwww w ww
w
ww Explanation ww ww ww ww
1.
i . OIf
. rgargfirm is able to selli.additional
O O . rgrg
O units at thei.same O . rgrgprice then
O i . O . rgrg
O
ala i a i a i a i
d a
d saaslaAR and MR will be
d a
d saaslala and equal. dadsaaslala
constant d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww 2. If thewfirm wwww is able to sell wwww
additional units only by wwww
reducing the w ww
w
ww w w w w w ww
price,
i . O . rgrgthen both AR andi.MR
O O . rgrwill
O g fall and be different.
i . O . rgrg
O i . O . rgrg
O
l
asala a i l
asal a a i l
asal a a i l
asala a i asla
42d a sa The law of demand d a sa and its exceptions. d a sa
Definition d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w ww w ww w ww w w w
www w ww
According to Alfred Marshall, www The Law of www www
i .O . rgrgDemand said as i―the
O .O . rgrquantity
O g demanded
i .O . rgrg
increases
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l with a fall d a
din l
saasprice
a and diminishes
d a
d saaswithl
a a rise in
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w price
wwww wwww wwww w ww
w
ww ww ww ww ww
Assumptions of Law of Demand
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i  l a a i l a a i l a a i
d a
d saasa l The income
d a
d saasa l of the consumer
d
remains
a
d saasa l constant.
d a
d saasa l
d a
d saasla
aa
.P.P  wThe ataste,
.P.P a habit and preference a a of the consumer
.P.P aa
.P.P aa
.P.P
w ww
w ww w wwww wwww w5 ww
w
ww ww remain the same. ww ww ww
i . O . rgrg  The prices ofi.O
O . rgrg related goods should
other
O i . O . rgrgnot change.
O i . O . rgrg
O
a i a i a i a i
saaslala saaslalabe no substitutes slalthea saaslala saasla

Padasalai
d a
d  There d a
should
d d a
d saa
for commodity. d a
d d a
d
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww Explanation wwww wwww wwww ww ww
ww ww ww ww ww
i . O . rgrgQuantity demanded
O i . O . Ogrg Y axis represents
rand i . O . rgrgprice of the
the
O i . O . rgrg
O
l
asala a i l
asal a a i l
asal a a i l
asala a i asla
d a sa commodity. d a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w ww w ww w ww w w w
www wwiswthe demand curve,
DD ww w
which has a negative w ww
slope. www
i .O . rgrg
O i .O . rgrg (OR)
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a saasa l
d a saasa l
d a saasa l
d a saasa l
d a saasla
a a Divisions of economics
.P.P d aa
.P.P d aa
.P.P d aa
.P.P d aa
.P.P d
w ww
w wwww wwww wwww w ww
w
ww ww ww ww ww
rgrgConsumption rgrg rgrg rgrg
l a ia.Oi . O l a ia.Oi . O l a ia.Oi . O l a ia.Oi . O
d a
d saasa l Human wants d a
d
a l
saascoming d a
d saasa
under consumption l is the starting
d a
d
asa
sapointl
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w of wwww
economic activity. wwww wwww w ww
w
ww ww ww ww ww
O O
rgrgProduction O rgrg
O O rgrg
O O rgrg
O
a i . i . a i . i . a i . i . a i . i .
d a
d saaslala Production d a
dis
lala
saasthe a
process of transformation
d d saaslala of inputsainto
d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa .P.Pa a
.P.Pa
wwww wwww
output. the factors of production wwww namely Land, ww
wLabour,
w Capital ww ww
ww ww ww ww ww
i . O . rgrgand Organization.
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l a a i
asal  Exchange asaasal l a a i l
asal a a i l
asala a i asla
d a sa d d a s a d a sa d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w ww w ww w ww w w w
www www
Exchange is concernedwwith ww price determination wwwin www
i .O . rgrgdifferent marketi.forms.
O O . rgrg This division covers
O i .O . rgrgtrade and
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
commerce. d a
d saasa l
d adsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P .P.Paa .P.Paa aa
.P.P
w ww
w wwww wwww wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P .P.P
ww ww.P.P ww.P.P ww.P.P
w
ww w wwww www w ww ww www w

i .O . rgrgDistribution
O i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P Production
.P.Pa a is the result of the .P.Pacoordination
a of factors a aof
.P.P aa
.P.P
w ww
w wwww w www wwww w ww
w
ww ww
production. ww ww ww
i . O . rgrgThe reward for factors
O i . O . rgrgof production isi.studied
O O . rgrg in this
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala division d a
d
under
la
saaslarent, wages, d
interest a
d
lala
saasand profit. d a
d
Distribution
saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww w www wwww w ww
w
ww w w
w about the pricingwof factors of production.
studies w w ww
43 i
The. O . rgfeatures
O rg of perfect i . O . rgrg
O
competition. Meaning i . O
of. rgPerfect
O rg i . O . rgrg
O
l
asala a i l
asala a i l
asal a a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad Competition.P.P
.P.P a ad .P.Pa ad a ad
.P.P a ad
.P.P
w w w w ww w ww w ww w w w
www ww
PerfectwCompetition market is
w
wwthat type of market in
w
wwwhich the www
i .O . rgrg of buyers and isellers
O .O . rgrg is very large, alli.O
O . rgrengaged
O g
i .O . rgrg
O
l a a i
number l a a i l a a i
are in l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P buying andw.selling a a a homogenous .product
P.P a a at uniform price. aa aa
w ww
w ww w w wwwP.P wwww.P.P
w ww
w
.P.P
ww w ww ww ww
Featuresw
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a1.a iLarge Number of a
Buyers
l a i and Sellers l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
5 d a
d saasla
aa
.P.P aa
.P.P aa
.P.implies
P aa
P.P
.each aa
.P.P
w ww
w The term, ww‗large
ww number of sellers‘ w www that sharewof www w ww
w
ww ww ww ww ww
individual seller is a very, very small quantum of a product.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
saaslala saaslala and Uniform aslala saaslala saasla

Padasalai
a 2. HomogeneousaProduct a sPrice a a
a d d a d d a d d a a d d a d d
ww.P.Pa All thewunits ww .Pathe product arewidentical
.Pof ww.P.Pa (ie) of the same ww.P.Pa
size, ww.P.Pa
ww
ww www w w w w www www w
shape, rgrgcolour, quality etc. rTherefore,
grg a uniform rprice grg prevails in .OO rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia i .
a sa
l market.
asathe a saasal a saasal a saasal a saasla
d
a ad d
a ad d
a ad d
a ad d
a ad
w .P.P
w ww.P.and
P ww.P.P ww.P.P w .P.P
w
w
www 3. Free w
Entry
www Exit w
www wwww w
www
Efficient
i .O . rgrg producer producing
O i .O . rgrg the product at ai.O
O very
. rgrglow cost, to
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasaearn super normal d a
d
asa l
saprofits. Attracted by
d a
dsuch
l
saasa a profit, new firms d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w enter into wwww w www wwww w w
w w
ww ww the industry. ww ww ww
i . rgrg
4..OAbsence
O Of Transport
i .O . rgrg
Cost
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasaThe prevalencedofadsathe asa l
uniform price d
is a
d
also
l
saasadue to the absence d a
d saasa
of
l
the d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w wwww w www wwww w ww
w
ww transport wwcost. ww ww ww
5.
i . O rgrg Mobility of Factors
O
Perfect
. i . O . rgrg of Production i.O.O
O rgrg i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa As they enjoy a a
.P.Pperfect freedom towmove a
.PPa from one placewto a
Pa
.Panother a
.P.Pa
ww
ww
ww
wwwwww
wwwww. ww www. ww
ww
ww
and from one occupation to another, the price gets adjusted.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala6.a iPerfect Knowledge l
asalaofa i the Market l
asal a a i l
asala a i asla
d a sa d a sa d a sa d a sa d a s a
a ad All buyers and
.P.P .P.P ad have a thorough
asellers .P.P d
a aknowledge of the .P a ad of
.P
quality
a ad
.P.P
w w w w ww w ww w ww w w w
www www www www www
the product, prevailing price etc.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P .P.P aa .P.Paa aa
.P.P
w ww
w wwww w www wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a d
aa ad a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P .P.P
ww
w
ww w ww ww www w www w wwww
7.
i .O No
. rgrgGovernment Intervention
O i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
d ad saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P There is no .P.Paa
government regulation .P.P aa
on supply of raw aa
materials,
.P.P and aa
.P.P
w ww
w wwww w ww
w w ww
w wwww
ww ww
in the determination of pricewetc. w ww ww
i . O . rgrg
O i . O . rgrg (OR)
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa Explain basic a
Pa
.P.problems of the economy a
.P.Pa with the help w a
of.P.Pa a
.P.Pa
wwww w ww
w w ww
w w w w wwww
ww w w
production w w w w ww possibility
i . O . rgrgProduction Possibility
O i . O . rgrgCurve Meaning i.O.O
O rgrg i . O . rgrg
O
l
asala a i l
asal a a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P .P.Pa ad .P.P a ad .P.Pa ad a ad
.P.P
w
www
w w  wwww w w
Production possibility curve
w
www
w w
shows the menu of w
www
w w
choice w
www
w w
along which a society can choose to substitute one good
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l for another.
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.Pbetween
.P .P.P aa aa
P.P
.to aa
.P.P
w
ww
ww
w  Choice
ww w ww
w relatively www ww
scarce
w commodities due
www ww
w w
ww
ww
w
limited productive resources with the help of a ―Geometric
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l Device‖ (that
d a
d
is
saasa l
production possibility
d a
d saasa l
curve)
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P.Paa aa
.P.P
w ww
w Assumptions
w ww
w . w ww
w w ww
w w ww
w
ww ww ww ww ww
 The time period does not change.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
i i i i
saaslala  Techniques
a a
lala are fixed.saslala a a
saaslala saasla

Padasalai
of
saasproduction
a d a
d a d a
d a d a
d a a d a
d a d a
d
ww.P.Pa  iii)wThere a
w.P.Pis full employment ww.inP.P a economy.
the ww.P.Pa ww.P.Pa
ww
ww wwww wwww wwww ww
ww
 Only two goods can be produced from the given resources.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
s l
asala a i  Resources of s l a a
production
asal i are fully l
mobile.
s asala a i
s l
asala a i
s asla
d
a ada a d
a ada a d
a ada a d
a ada a d
a ada a
w .P.P
w w .P.P
w w .P.P
w w .P.P
w w .P.P
w
w
www wwww w
www w
www w
www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa .P.P aa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ala i a i a i a i
d a
d saaslaExplanation d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa .P.Paa a
.P.Pa a
.P.Pa
wwww  The www w
quantity of food is shown wwww on x-axis and the w ww
w
number of wwww
ww ww ww ww ww
i . O . rgrgcars is shown on y-
O i . O . rgrg
axis
O i . O . rgrg
O i .O . rgrg
O
l a a i
asal  The different l
asix a a i
alproduction possibilities l a a i
asal are being shownaas l
asala a i asla
d a sa d a sa s d a s a d s a d a s a
a ad
.P.P .P.Pa ad .P.P a ad .P.Pa ad a ad
.P.P
w w w w
point w w
P1 P2 P3 P4 P5 & w
P6. w w w w w w w w
www www www www www
rgrgA maximum of 500 tons rgrg of food can be produced, rgrg given the i.O.O rgrg
l a ia.Oi . O l a ia.Oi . O l a ia.Oi . O l a a i
d a
d saasa l
d d saasa
existing technology.
a
l
d adsaasa l
d adsaasa l
d adsaasla
aa
.P.P .P.Paa .P.P aa .P.Paa aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
aad a
d a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w wwww www w www w w
ww w

i .O . rgrgIf on the other hand,

O i .O . Orgall
rg resources are instead i .O . rgrgused for
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
producing d a
d
cars,
l
saasa25 cars can be produced. d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww w ww
w w ww
w w ww
w
ww  In wwbetween these two extremes, ww possibilities exist. ww ww
i . O . rgrgIf we are willing to
O i . O . rgrgup some food, we
give
O i . O . rgrghave some cars.i.O.O
can
O rgrg
a i a i a i a i
d adsaaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.P44a a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww
S.No Internal Economies ww ww
External Economies ww
i . O . rg1rg
O Technical i . O . Ogrg
rEconomies: i . O . rg1.
O rg Increased transport i . O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa a s
There
d a is a possibility to
d a sa facilities d a sa d a sa
a ad
.P.P .P.Pa ad a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www introduce www www www
i .O . rgrg
O up-to-date
i .O . rgtechnologies
O rg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l 2 d a
d
l
saasa Economies: dadsaasa
Financial l
a
d saasa
2. Bankingdfacilities l
d a
d saasla
aa
.P.P .P.Paa .P aa
.P aa
.P.P aa
.P.P
w ww
w wwww Big firms can w ww
float
w shares in the w ww
w w ww
w
ww ww ww ww ww
market for capital expansion,
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg 5
O
i i i i
d adsaaslaala 3 d d saaslaala Economies:
Managerial
a d a
d saaslaala 3.
Large d a
d saaslaala d a
d saasla
aa
.P.P .P.Paa aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww scale w ww
w w ww
w
Development w ww
w
ww ww ww ww ww
rgrg production rgrfacilitates
g rgof
rg townships rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
saaslala saaslala saaslala saaslala saasla

Padasalai
d a specialisation
d a and delegation.
d a d a d a
a
.P.Pa d a a d a
.P.Pa d a a d a
.P.Pa d
ww 4 ww w.P.P Labour Economies: ww 4. ww w.P.P ww
ww
ww ww w wwww ww w ww
ww
Large scalegproduction implies gDevelopment
i . O . rgrg
O i . O . r rg
O i . O . r rg
O i . O . rgrg
O
l
asala a i l a a i
asal and minute division
greater l a
asaofl a i of information l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P .P.Pa ad a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w labour. w w w and w w w w w w
www www www www www
i . O . rgrg
O i . O . rgrg
O i . O . rgcommunicatio
O rg i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
d a
d saasa l
d a
d saasa l n
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.P aa
.P.P aa
.P.P
w ww
w 5 wwww Marketing ww
Economies:
w w 5. w ww
Expansion
w of the w ww
w
ww ww ww ww ww
rgrg The producers rgrg can both buy i.O.O rgPlant
rg size rgrg
l a ia. O
i . O l a ia. O
i . O l a a i l a ia.Oi . O
d adsaasa l raw-
d a
d
l
saasamaterials in bulkdat a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P .P.Paa aa
.P.P aa
.P.P aa
.P.P
w ww
w wwww cheaper cost and
w wcan
w w take the w ww
w w ww
w
ww ww ww ww ww
rgrg products to rgrdistant
g rgrg rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
d adsaaslala d d saaslala
markets.
a d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
ww
ww
ww
wwwwww
www(OR)
ww
w wwwwww ww
ww
ww
The rshort grg run cost curves with
rgrg suitable diagram. rShort
grg run cost rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia.Oi . O
a saasal curves: a saasal a saasal a s aasal a s aasla
d
a ad d
a ad Fixed Cost Curve d
a ad d
a ad d
a ad
w .P.P
w 1. TFC
w .P
w - P
.Total w .P.P
w w .P.P
w w .P.P
w
w
www w
www w
www w
www w
www
2. TVC - Total Variable Cost Curve
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l 3. TC - Total
d a
d
Cost
saasa l Curve
d a
d saasa l
d adsaasa l
d adsaasla
aa
.P.P 4. AFC aAverage
.P-.P a Fixed Costww aa
.P.P
Curve aa
.P.P aa
.P.P
w ww
w wwww w w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P .P.P
ww
w
ww w www w wwww wwww wwww

i .O . rgrg5. AVC - Averagei.Variable

O O . Orgrg Cost Curve i.O.O rgrg i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
6. AC OR d a
ATC
d
l
saas- aAverage Cost or Average d a
d
l
saasa Total Cost d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww wwww wwww
ww ww
7. MC - Marginal Costww ww ww
45 rgrg price and output rgdetermination
rg rgrg rgrg
Illustrate
i . O
i . O i . O
i . O i . O
i . O i . O
i . O
ala
saaslaunder a
aslala
sMeaning a
saaslala a
saaslala saasla
a d a
d Monopoly.a d a
d a a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa .P.Pa
ww
ww
ww Monopoly w w w w ww
w is a market structurew characterized by a single w ww
w seller, wwww

i . O
selling. rgrgthe unique product
O i . O . rgwith
O rg the restriction i . O . rgrga new firm to i.O.O
for
O rgrg
l
asala a i l
asal a a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad enter the market.
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w ww w ww w w w
www Features wwofwMonopoly www www www
1.
i .O . rgrg is a single producer
There
O i .O . rgrg/ seller of a product;
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P 2. The product aofa a monopolist is unique
.P.P a a and has no close.P
.P.P substitute;
aa aa
.P.P
w ww
w w ww
w wwww wwww.P w ww
w
ww 3. There wwis strict barrier for entry ww of any new firm; ww ww
4.
i . O . rgrgmonopolist is a price-maker
The
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg 5
O
i i i i
d a
d saaslaalaPrice & Outputdad saaslaala
Determination Under d a
d saaslaala
Monopoly d a
d saaslaala d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww wwww w ww
w
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww wwww wwww wwww ww
ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i
Explanation l
asal a a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad 1. The Diagram
.P.P .P.P ad that MC cuts.PMR
ashows d
a aat
.P E to give equilibrium a adoutput
.P.P a ad
.P.P
w w w w w w w ww w ww w w w
www as OM. www www www www
i
2. .O .
At rgrOM,
O g
the price charged i .O . rgrisg OP (we find thisi.by
O O . Ogrg
rextending line EMlalia.O . rgrg
O
l a a i l a a i l a a i i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa d a
d saasla
aa
.P.P 3. till it touches aAR
.P.P a or demand curve). aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww wwww w ww
w
ww ww ww ww ww
4. Also at OM,thecostperunitisMS.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a5.a i l a i
Therefore,profitperunitisSQortotalprofitisPQRS.
a l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P 6. Numerical aa
.PExplanations
.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w wwww wwww w ww
w
ww ww ww ww ww
Let us take the following hypothetical example of Total Revenue
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ala i a i
lala function. a i a i
d a
d saaslaFunction and Totalsascost
d a
d a d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa TR=100Q-4Q2
a a TC=Q3 - 18Q2.P+.P91Q
.P.Pand a a +12. a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
Therefore AR= 100 - 4Q; MR=100 - 8Q; AC=
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l al
asaQ2- a i 18Q + 91 + 12/Q; l a
asaMC=l a i 3Q2 - 36Q + s91; l
asala a i l
asala a i asla
d a sa d a sa d a a d a sa d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w When Q=3,
w w w w ww w ww w w w
www www www www www
AR= 100 – 4(3) = 88,
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
AC= 32-18(3)
d a
d
l
+91+12/3=9-54+91+4=50;
saasa d adsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P .P.Paa .P.Paa aa
.P.P
w ww
w w ww
w wwww wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww .P.P ww.P.P ww.P.P ww.P.P
w
ww w www w www w www w wwww

i .O . rgrg
MR=100-8(3)
O =76; laia.O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i i l a a i l a a i
d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P MC= 3(3)2- .36(3) a a +91=27-108+91 =.P.10 aa aa aa
w ww
w w wwP.P
w w ww P
w w ww
w
.P.P
wwww.P.P
ww Total profit ww = (Average Revenue ww – Average Cost) XwTotal w output ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala d a
d saaslala (OR) ada d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa .P.Pa a
.P.Pa a
.P.Pa
wwww w ww
w w ww
w w ww
w wwww
ww The Keynesian w w Theory of Interest. ww Meaning w w ww
Liquidity
i . O . rgrg preference means
O i . O . rgrgthe preference ofi.the
O O . rgrpeople
O g to hold i.O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad wealth in the.P.form
.P.P a ad of liquid cash rather
P a adthan in other non-
.P.P ad
aliquid
.P.P a ad
.P.P
w w w w w w w w w w w w w ww
www assets like wwwbonds, securities, bills wwwof exchange, land,wbuilding, ww gold www
etc.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P Motives of Demand
aa
.P.P for Money aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww 1. The w w
Transaction Motive ww ww ww
The
i .O . rgdesire
O rg of the people i .O to
. rgrhold
O g cash for the current
i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P transactions (or
aa
.P.P day–to- day expenses).
aa
.P.P Mt = f (y) aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww 2. The w w
Precautionary Motiveww ww ww
i . O
Desire . rgrgof the people toi.hold
O O . rgrgcash to meet unexpected
O i . O . rgrg or
O i . O . rgrg
O
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d unforeseen a d a
d
expenditures such as a d a
d
sickness, accidents). Mp =afd a
d
(y) a d a
d
ww.P.Pa ww .P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww w w
w w www w w w
w w wwww
3. The Speculative Motive
The
i . O . rgspeculative
O rg motive i . O rgrg to the desire ofi.Othe
O
relates
. . rgrgpeople to hold i.O.O
O rgrg
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad cash in order.P.to
.P.P d advantage of .market
a atake
P a ad movements regarding
P.P a ad the
.P.P .P.Pa ad
w w w w w w w w w w ww w ww
www future.ww
w www www www
Ms
i .O . r=grfg(i)
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa Equilibrium.P aa a a of Money .P.P aa aa
w ww
w
.P.P
w wwbetween
w
.P Demand and.PSupply
w ww.P
w wwww ww
.P.P
ww
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P .P.Paa
w ww
w w ww
w w ww
w wwww wwww
ww ww ww ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a a i a i a i a i
d a
d saaslalThe isa
rate of interest d saaslala by the demanddfor
determined
d a
d
aslala and the supply of money.
samoney d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww w ww
w w ww
w wwww www
w
ww 1. If liquidityw w preference increases ww from LP to L1P1 thewsupply w ww
of
i . O . rgrg remains constant,
money
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa 2. The rate of d a s
interesta would increase d a
from sa OI to OI1. d a sa d a s a
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P .P.Pa ad
w w w w w w w w w w ww w w w
www 3. The supply www of money remains w
wwconstants. www www
4.
i .O . rgrg demand for money=Mt+Mp+Ms
Total
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
dadsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P .P.Paa
w ww
w w ww
w w ww
w wwww w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
aad a
d a d
aa a
d a aad a
d a aad a
d a aad a
d
ww.P.P .P.P
ww ww.P.P ww.P.P ww.P.P
w
ww w wwww wwww www w wwww
Demand
i .O . rgrg for money=supply
O i .O . Orgrof
g money at equilibrium
i .O . rgrg point ;
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasaEquilibrium Point d a
1
d sa=asaE
l
= LP = M2 = I = d a
Rate
d
l
saasofa Interest ... (1) dadsaasa l
d a
d saasla
aa
.P.P .P.Paa .P.Paa aa
.P.P aa
.P.P
w ww
w wwww wwww w ww
w wwww
ww Equilibrium ww Point2 = E1 = L1P1w=wM2 = I1 = Rate of Interest ww ... ww
(2)
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d adsaaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.P46a .PPa
The law ofwdiminishing a marginalwutility a
.PPa with diagram. ww a
.PPa a
.P.Pa
ww
ww
ww
wwwww. wwwww. wwww . wwwwww
Definition
. O r
O gr g . O rgrg
O . O rgrg
O . O rgrg
O
l
asala ia i . Marshall states l
asala ia
the i . law as, ―the a
additional
l
asal ia i . benefit which l
asala ia i . asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P person a ad from a given .increase
.Pderives
.P P.Pa ad of his stock of .P.P d
aaathing, a ad
.P.P
w w w w ww w w w w w w w ww
www www www www www
diminishes with every increase in the stock that he already
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l has.
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P 5 .PP aa
w ww
w Assumption
wwww wwww w ww
w wwww.
ww ww ww ww ww
 Utility can be measured by cardinal number (Eg:1,2, 3..)
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l
saasa al a i  The marginal
saasal al a i
utility of money remains
l
saasa al a i constant. l
saasa al a i
saasla
aad ad d a
d
aconsumer
a d a
d
arational
a aad a
d aad a
d
ww.P.P  wThe
w.P.P should w .Pa.P
bew consumerww .P.P ww.P.P
w
ww w wwww wwww www w wwww
 The units of the commodity must be reasonable in size.
. O rgrg
O . O rgrg
O . O rgrg
O . O rgrg
O
a i i .  The commodity a i i . consumed should a i
be i . homogeneous a i i .
saaslala saaslala saaslala saaslala saasla

Padasalai
a d ad a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww wwww wwww wwww wwww

i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P .P.Pa ad a ad
.P.P .P.Pa ad
w w w w ww w w w w w w w ww
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P .P.Paa
w ww
w wwww wwww w ww
w wwww
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P .P.Paa
w ww
w Explanation;
wwww wwww w ww
w wwww
ww ww ww ww ww
 Suppose a consumer wants to consume 7 apples one after
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i another. a i a i a i
d adsaaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa  wThe a a
.PPutility from the first .P a
.Pa is 20. But thewutility
apple a
.P.Pafrom a
.P.Pa
ww
ww
ww
wwwww. w wwww
w
ww
w w www
w
the second apple willwbe less than that of the w first (say w
i . O . rgrg 15), the thirdi.O
O less
. rgrgthan that of the second
O i . O . rgrg (say 10) and i.O.O
O rgrg
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a s a
a ad
.P.P so a ad
.P.on.
P .P.Pa ad a ad
.P.P .P.Pa ad
w w w w ww w w w w w w w w w
www wwwFinally, the utility from wwwthe fifth apple becomes www zero and www
i .O . rgrg the utilities from
O i .O . rgrsixth
O g and seventh .apples
i O . rgrg are negative. i.O.O
O rgrg
l a a i l a a i l a a i l a a i
d adsaasa l
d a
d saasa l
dadsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P .P.Paa
w ww
w wwww w www w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s as laalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aa d a
d a aa d a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww .P.P ww.P.P ww.P.P
w
ww w www w www w www w wwww

i .O . rgrg
Criticisms
O ; i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
a saasa l
a saasa l
a saasa l
a saasa l
a saasla
d
aa
.P.P d  Utility
aa
.P.P
d d
cannot be measured.P.Paa d d
numerically. aa
.P.P
d d aa
.P.P
d d
w ww
w w ww
w w ww
w w ww
w wwww
ww ww This law is based on wwthe unrealistic assumptions. ww ww
O rgrg
O O rgrg
O O rgrg
O O rgrg
O
a i . i .  This law is i
not
a . i .applicable . a i . i . a i . i .
d a
d saaslala d a
d saaslala d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa (OR) a
.P.Pa a
.P.Pa a
.P.Pa
wwww wwww wwww wwww wwww
ww ww ww ww ww
A brief note on the Gandhian economic ideas.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i Gandhian Thought l
asal a a i : Gandhian Economicsl
asala a i is based on ethical l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P
foundations. .P.Pa ad a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w ww
www ww Republics : TowGandhi,
1.wVillage ww India lives in villages. www He www
i .O . rgrwas
O g interested in developing
i .O . rgrg
O the villages i O
.as . Ogrg
rself-sufficient i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P units. .P.Paa .P.Paa aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww 2.wOn
w Machinery : Gandhi wwdescribed machinerywas w ‗Great sin‘. ww
i .O . rgr3.
O g Industrialism : Gandhi
i .O . rgrg considered industrialism
O i .O . rgrg as a curse oni.O.O
O rgrg
l a a i l a a i l a a i l a a i
d a
d saasa l
mankind. d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P aa
.P.P
w ww
w w w
w w
4.wDecentralization : He w w w
w w
advocated a decentralized w w
w w wwww
ww w w ww economy, ww
i . O . rgr5.
O g Village Sarvodaya
i . O . r:grHe
O g suggested the development
i . O . rgrg
O of
i . O . rgrg
O
a i a i a i a i
saaslala self-sufficient, lala saaslala saaslala saasla

Padasalai
d a
d d a
d saasself- dependent villages. d a
d d a
d d a
d
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww w
6.wTheww
w Doctrine of w
Trusteeship: ww
w Trusteeship w ww
w
provides a means wwww
ww w w w w w ww
i . O . rgrof
O g transforming the
i . O .
present
rgrg capitalist order
O i . O . rof
Ogrgsociety into an .OO
i . rgrg
l
asala a i l
asal a a i l
asala a i l
asala a i asla
d a sa egalitariandone.a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P .P.Pa ad a ad
.P.P .P.Pa ad
w w w 7. On
w w w
Population : Gandhi w w w
opposed the method of
w w w w w w
www www www www www
i . O . rgrpopulation
O g control through
i . O . rgrg contraceptives.
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l 8. On Prohibition
d a
d
l
saasa : Gandhi advocated d a
d
l
saascent
a per cent
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P .P.Paa
w ww
w prohibition.
w ww
w He regarded the w ww
w use of liquor as a disease w ww
w rather w ww
w
ww ww ww ww ww
than a vice.
.O . rgrg
O .O . rgrg
O .O . rgrg
O .O . rgrg
O
47 alalia i l a ia i l a ia i l a ia i
d a
d sasa Strong featuresdIndian a
d
l
saasa economy Important d a
d
l
saasaStrong features dadsaasa l
d a
d saasla
aa
.P.P aEconomy
.P.P
of Indian a .P.Paa aa
.P.P .P.Paa
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
1. India has a mixed economy
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala Indian economy d a
d saaslalisa a typical example d a
d
lalamixed economy. This
saasof d a
d saaslala d a
d saasla
a
.P.Pa a
P.Pa private and public
.both .P.Pa a a
P.Pa
.function a
.P.Pa
wwww means
wwww wwww sectors co-exist and wwww wwww
ww ww ww ww ww
smoothly.
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i .O . rgrg 5
O
l
asala a i 2. Agriculture l a a i
al the key role asaasal
asplays l a a i l
asala a i asla
d a sa d a sa d d a s a d a s a
a ad
.P.P a ad
.P.60%
P a ad
.PIndia
.P a ad
.P.P .P.Pa ad
w w w Around
w w w of the people w in
w w depend uponw wagriculture
w w w w
www www www www www
for their livelihood. In fact, about 17% of our GDP today is
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l contributedaby
d d saasthe l
a agricultural sector.
dad saasa l
d adsaasa l
d adsaasla
aa
.P.P aa
.P.P .P.Paa aa
.P.P .P.Paa
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aa l al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s aslaalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a d
aa ad a aad a
d a aad a
d a aad a
d
ww.P.P ww .P.P ww.P.P ww.P.P .P.P
ww
w
ww w www w www w www w wwww

i .O . rgr3.
O g An emerging market
i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d adsaasa l
India has d
a ahigh
d
l
saasapotential for prospective d a
d
l
saasa growth. Thisdalso a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w wwww
ww ww it an emerging market
makes ww for the world. ww ww
i . O . rgr4.
O g Fast Growing Economy
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
d a
d saaslala India has emerged d a
d saaslala as the world‘sdfastest a
d saaslalagrowing economy d a
d saaslala d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww w ww
w w ww
w w ww
w wwww
ww w w
w year 2016-17 withwthe growth rate of 7.1%
in the w w in GDP ww
i . O . rgrnext
O g to China. .O.O
i rgrg i . O . rgrg
O i . O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad Service Sector
5. Fast.growing
P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www
The service sector, contributes www a lion‘s share ofww w GDP in
the www
i .O . rgrIndia.
O g There hasabeen i .O . rgrag high rise growthi.Oin
O . rgthe
O rg technical i .O . rgrg
O
l a a i l a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P sectors.P like
a a Information Technology, aa
.P.P BPO etc. aa
.P.P aa
.P.P
w ww
w w ww.P
w w ww
w w ww
w w ww
w
ww 6.wDemographic
w dividend ww ww ww
i .O . rgrThe
O g human capital.O.of
i rgrIndia
O g is young. This i .O . Ogrg that India is .OO
rmeans i . rgrg
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P a pride owner
aa
.P.P of the maximum percentage
aa
.P.P of youth. aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww(OR) ww ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
aThe i Marginal Productivitya i Theory of Distribution.
a i Meaning a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
.P.Pa Accordingwto Pa Marginal Productivity
.Pthe .P.Pa Theory of Distribution, .P.Pa .P.Pa
ww
ww
ww
wwwww. wwwwww
wwwwww ww
ww
ww
the price or the reward for any factor of production is equal to the
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asala a i
marginal productivity l
asala of
a i that factor. In short,l
asala a i
each factor is l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad rewarded according
.P.P a ad to its marginal.P.productivity.
.P.P a ad
P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
Assumption
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a1.a i All the factors of production
l a a i are homogenous. l a a i l a a i
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P 2. Factors w ofw aa
production
.P.P can be substituteda a for each other..P.P
.P.P aa aa
.P.P
w ww
w w w w ww
w w ww
w w ww
w
ww 3. There w
w is perfect competition wwboth in the factor market
ww and product ww
i .O . rgrg
market.
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d
l
saasa4. There is perfect d a
d aasa l
smobility of d a
d saasa l
d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w factors w
of ww
w
production. Marginal w ww
w w ww
w w ww
w
ww ww ww ww ww
Product rgrg rgrg rgrg rgrg
a i . O
i . O a i . O
i . O a i . O
i . O a i . O
i . O
la Marginal product
saaslaThe saaslalofa a factor of production saaslala means the addition saaslala saasla
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa made to w w.P
the .Pa product by employment
total ww.P.Pa of an additional ww
a of
.P.Punit ww.P.Pa
ww
ww wwww wwww wwww ww
ww
that factor. The Marginal Product may be expressed as MPP, VMP
and
i . O . rgMRP.
O rg i . O . rgrg
O i . O . rgrg
O i .O . rgrg
O
l
asala a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a s a
a ad Marginal Physical
.P.P a ad Product (MPP) .P.P
.P.P a ad a ad
.P.P a ad
.P.P
w w w Value of w w w w w w w w w w w w
www wwMarginal
w Product = w VMP
ww = MPP x Price Marginal www Revenue www
Product
i .O . rgrg MRP = MPP xi.MR
O O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
dadsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w ww
w w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aal al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas
 s as laalia. i.O www.Padasalai.Net s aslaalia. i.O s as
O
laalia. i.www.TrbTnpsc.com s aslaalia. i.O saasla
d
aa ad a aad a
d a aad a
d a aad a
d a aad a
d
ww.P.P ww.P.P ww.P.P ww.P.P .P.P
ww
w
ww w www w www w www w wwww

i .Under
O . rgrg Perfection Competition
O i .O . Orgrg i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d ad
l
saasa1. When there isdperfect a
d
l
saasa competition indthe a
d
l
saasfactor
a
market, the d a
d saasa l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w www w ww
w w ww
w wwww
ww firm is in wwequilibrium (i.e., earning ww maximum profits) w w when
only ww
MFC
i . O . rg=rgMRP.
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
ala i a i a i a i
d a
d saasla2. Hence, in the a saaslala the firm reaches
diagram,
d d d a
d saaslala
equilibrium at pointd a
Q
d
aslala
saby d a
d saasla
a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa a
.P.Pa
wwww employing ww wON
w units of factorswand w wpaying
w w OP price (NQ)w w
w w
where MFC wwww
ww ww w w w ww
= MRP. rgrg At the point Q, MRP rgr=gARP. rgrg rgrg
l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O l a ia. O
i . O
a saasa3. l The price paid tosthe
a a asal factor (NQ) is also a s asal to marginal revenue
equal
a a saasal a saasla
d
a ad d
a ad d
a ad d
a ad d
a ad
w .P.P
w product (NQ)w .Pand
w .P average revenue w wP.P
.product (NQ). w .P.P
w w .P.P
w
w
www w
www w
www w
www w
www
Under rgrgImperfect Competition rgrg rgrg rgrg
l a ia. O
i . O l a ia.Oi . O l a ia.Oi . O l a ia.Oi . O
d a
d
l
saasa1. Under imperfect d a
d
asa l
sacompetition, d a
d
l
saasaQ, MFC = MRP, dadsaasa
At the point l
d a
d saasla
aa
.P.P aa
.P.P aa
.P.P aa
P.P
.stops aa
.P.P
w ww
w where the w ww
employer
w attains his w ww
maximum
w profit and sowhe ww
w w ww
w
ww ww ww ww ww
employment of the factors at the point.
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
2. The total exploitation
d a
d saasa l of factor by the
d a
d saasa l
employer is RQ X SR
d a
d
=
saasa l
d a
d saasla
aa
.P.P ―PQRS‖w(shaded a a area).
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w w w w ww
w w ww
w w ww
w
ww w ww ww ww
3. Thus, w under imperfect competition, factor is exploited at the
i . O . rgrg
equilibrium
O position. i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
a i a i a i a i
saaslala saaslala saaslala saaslala saasla

Padasalai
a d a
d a d a
d a d a
d a d a
d a d a
d
ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa ww.P.Pa
ww
ww wwww wwww wwww ww
ww
i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O i . O . rgrg
O
l
asal a a i l
asala a i l
asala a i l
asala a i asla
d a sa d a sa d a sa d a sa d a sa
a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P a ad
.P.P
w w w w w w w w w w w w w w w
www www www www www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
saasa l saasa l saasa l saasa l saasla
w
ww
ww
w
aa
.P.P
d a
d
SHRI KRISHNA ACADEMY
www www
aa
.P.P
d a
d
www ww
w
aa
.P.P
d a
d
www ww
w
aa
.P.P
d a
d
w
ww
ww
w
aa
.P.P
d a
d

ia.O .Orgrg i .O . rgrg

O i .O . rgrg
O i .O . rgrg
O
 a CREATIVE
l a i QUESTIONS l a a i l a a i l a a i
d a
d sasa l
d a
d saasa l
d a
d saasa l
d a
d saasa l
d a
d saasla
aa ONE MARKS, TWO aaMARKS, THREE MARKS
aa AND FIVE MARKS AVAILABLE
aa IN ALL aa
ww.P.P ww.P.P ww.P.P ww.P.P ww.P.P
w
ww w SUBJECTS www w www w www w w
ww w
 MATERIALS(GUIDE)
Xla .aO
-liSTD . rgr, gXI - STD, XII - STDi.O
O . rgrg
O
AVAILABLE IN ALL i . O .
SUBJECTS
rgrg
O i . O . rgrg
O
i a
lala i a i a i
da
d saasFULL
a
TEST QUESTION d a
d saasPAPERS d a
d saaslala d a
d saaslala d a
d saasla
a
.P.Pa X - STD , XI - STD, a a
.P.PXII a
.P.P a a
.P.Pa a
.P.Pa
wwww ww ww - STD AVAILABLE wwww IN ALL SUBJECTS ww ww wwww
ww ww ww ww ww
 ONE MARK TEST QUESTION PAPER for X, XI, XII AVAILABLE in ALL SUBJECTS.
O rgrg O rgrg O rgrg O rgrg
s 
l
asal a ia. i .
For O MORE DETAILS
s l
asala ia. i .-O99655 31727s l
asala ia.,i .94432
O 31727 s l
asala ia. i . O
s asla
d
a ada a d
a ada a d a
a ad a d
a ada a d a
a ad a
w .P.P
w w .P.P
w w .P.P
w w .P.P
w w .P.P
w
w
www w
www w
www w
www w
www
i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O i .O . rgrg
O
l a a i l a a i l a a i l a a i
d a
d saasa l
d a
d saasa l
d adsaasa l
d a
d saasa l
d adsaasla
aa
.P.P aa
.P.P aa
.P.P aa
.P.P aa
.P.P
w ww
w w www w ww
w w ww
w w ww
w
ww ww ww ww ww
i .O . rgrg
O i .O . rgrg
O i .O . Orgrg i .O . rgrg
O
aa l al a i aal al a i l al a i l al a i ala
dasasSend Your Questions dasa&sAnswer Keys to our saasa id - padasalai.net@gmail.com
daemail dasas
aa
dasas