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(A) 3 shells and 2 valence electrons

(C) Calcination

A compound X consists of only molecules. Hence X will have a low melting point and low boiling point.

When fused lead bromide is electrolyzed we observe a silvery grey deposit at cathode and reddish brown fumes at anode.

Heating an ore in a limited supply of air or in the absence of air at a temperature just below its melting point is known as calcination.

The main ore used for the extraction of iron is haematite.

(i) A white ppt of lead hydroxide. 

(ii) A colourless solution is obtained and brown colour of bromine vapours disappears.

(iii) A red metal starts precipitating and the blue colour of the copper sulphate solution fades due to the formation of colourless zinc sulphate. 

(iv) A reddish brown gas is liberated. 

(v) A reddish brown ppt. of ferric hydroxide is formed which remains insoluble in excess of sodium hydroxide.

(i) Electrode on the left side is the oxidising electrode because copper atoms lose electrons at this electrode. 

(ii) At anode : Cu - 2e^- -----> Cu²⁺ 

At cathode : Cu²⁺ + 2e^- -----> Cu 

(iii) (1) Reddish brown copper metal is deposited at cathode so anode becomes thin and cathode grows thick gradually. 

(2) Blue colour of aqueous copper (II) sulphate solution remains unchanged.

 'X' number of molecules.

1. (a) When NH4OH is added to copper (II) nitrate solution in small quantities then a pale blue ppt. is observed.

(b) When added in excess it disolves to give an inky blue solution forming a complex salt.

2. (a) When added in small quantities is forms a gelatinous white ppt.

(b) When added in excess it dissolves to form a complex salt.

3. (a) Reddish brown gas is evolved.

(b) Colourless, odourless gas evolved which rekindles a glowing splinter

It will contain X no. of  molecules.

Power of accommodation of eye : The power of eye to focus images of distant and near objects on the retina to assure clear vision, is called power of accommodation. It is done by coordinated working of cilliary muscles and suspensory ligament.

Presbyopia : It is an old age defect, in which lens losses it flexibility

(D)  Suction pressure

Microeconomics is the study of economics from a more individual point of view (consumers and their spending habits and firms in how they make profits) and how the economy affects people in their daily lives. Macroeconomics is economics from a ‘big picture’ perspective, such as how our country’s economy affects the world as a whole, etc.

Macroeconomics deals with large-scale economic decisions. It focuses on countries or continents and large regions, and it generally has applications for government policymakers. In contrast, microeconomics focuses on small-scale economic decisions, between individuals and firms. It examines how businesses can be the most successful and why individuals make the economic decisions that they do.

The second fundamental function of money is that it acts as a common measure of value. Just as we use kilogram in measuring weight of a commodity and metre in measuring length of a commodity, similarly, for measuring value of a commodity we take money as a unit of account.

Money serves as a unit of measurement in terms of which the values of all goods and services are measured and expressed. 

For example, a shirt may cost Rs 500, a chair Rs 600, a book Rs 80, a pen Rs 15 and so on. When we express the value of a commodity in terms of money, it is known as price. Thus, money has provided a language of economic communication.

(a) Factors Affecting Productivity of Land: 

1. Fertility of Land: The productivity of land is determined by its natural qualities and its fertility. A flat and levelled land is comparatively more productive than an undulating one The rich soil is more fertile and productive. 

2. Proper Use of Land: The productivity of land’ is directly related to its proper utilization. For example, a piece of land situated in the heart of city is more suitable for construction of a house or a market place. If this piece of ‘land’ is put for farming or agricultural use, its productivity will almost be negligible. 

3. Location of Land: The location of ‘land’ affects its productivity to a great extent. For example, the location of land near the market or bus station will result in economy of transportation charges and overall productivity from this point of view will naturally be higher. 

4. Improvements done on Land: The permanent improvement done on land, like construction of irrigation channels, hedging of fields or the construction of dams, etc., have positive effects on productivity of land. 

Two main characteristics of land which distinguish it from other factors of production: 

1. Land is Immobile: Land cannot physically move from one place to another whereas capital, labour and entrepreneur are all mobile factors of production. 

2. Effect of Laws of Returns: Since land is a fixed factor of production, the laws of returns are more effectively applicable on it. Use of capital and labour etc can be varied overtime. 

(b) Human Capital: Those hidden qualities in a person which earn him an income and cannot be transferred from one place to another is called human capital

(a) When the government makes arrangement for a separate fund for meeting the debt obligations, it is called funded debt. The funded debt is also called long-term public debt. On the other hand, while taking loan if the government does not create any separate fund for the repayment of the principal sum along with interest, it is called unfunded debt or floating debt. The unfunded debts are short term debts. 

Three purposes of Public debt: 

1. Covering the gap between the expenditure and tax revenue: If the government’s revenue from taxes and other sources’ falls short of expenditure, public borrowings become a necessity. The excess of government’s expenditure: over its revenue creates a deficit in the government budget. The growing deficit in the government budget has been the principal reason for public borrowings in India. 

2. Controlling Inflation: Public debt is used, side by side with taxes, as an instrument of Inflation control. At times of inflation, government tries to reduce the purchasing power of consumers, so that the pressure of excess demand may be reduced. Like taxes, public debt also takes money away from people’s hand. 

3. Development Financing: In a developing economy like India, the government often has to play a leading role in economic development. For raising the necessary funds, the government takes recourse to borrowing from the public. In India, public debt has been a major source of financing the development finance. 

(b) Inflation: Inflation is a rise in price levels with additional characteristics. It is incompletely anticipated, it does not increase to further rises, it does not increase employment and real output.

Four factors that cause demand-pull Inflation: 

1. Increase in Population: Increase in population refers to increased demand of consumer goods, which puts a pressure on existing supply of goods and services thus resulting in inflation.

2. High Rate of Investment: The heavy investment made by the Government as well as private industrialists have resulted in continuous increase in the prices of capital goods and other items of production. 

3. Black Money: It is created through tax evasion and is responsible for price rise. It is spent on non-productive activities like buying real estate in urban areas, gold smuggling, luxurious items etc. 

4. Deficit Financing: Deficit financing increases the money supply in public hands, therefore increasing the demand of goods and services.

Demand Deposits (also known as current deposits) are those deposits which can be withdrawn by the depositor at any time by means of cheques. No interest is paid on such deposits. Rather, the depositors have to pay something to the bank for the services rendered by it. These deposits are generally made by businessmen and industrialists who receive and make large payments. The accounts in which they are deposited are called Current Accounts.

(a) Five causes of Elasticity of demand: 

1. Nature of the commodity: An important determinant of Elasticity of demand for a commodity is the nature of the commodity itself. If the commodity is a necessity of life, its demand will not change much when its price changes. The Elasticity of demand will be low. In our country the demands for rice, salt, edible oil, etc., are relatively inelastic. 

2. Multiple uses: The demand for a commodity, which can be put to a variety of uses, will be relatively elastic demand for instance, electricity can be used for cooking, heating, lighting, washing etc. When the price of services rises, the consumers can cut down on some of the uses of electricity, confining themselves to the more urgent uses. The demand for electricity will, therefore, be elastic. 

3. Role of habits: Habits also play a role in the determination of elasticities For instance, if a person has developed the habits of smoking, he may not be able to reduce his consumption of cigarettes even when the price of cigarettes’ goes up. His demand for cigarettes will be inelastic. 

4. Durability of the goods: In case of a durable goods (for instance, a piece of furniture), a change in price would not affect demand very much. Because most of the consumers will not buy a new piece of furniture until the old one is totally worn out. For this reason, durable goods usually have low elasticities of demand. 

5. Availability of substitutes: The commodities, for which other substitutes are available in the market, have more elastic demands as compared to commodities without proper substitutes. A good example is that of tea, for which coffee is generally available as a substitute. A change in the price of tea, causes almost proportional change in its demand. 

(b) Five determinants of shift in the supply curves: 

1. Change in price of inputs: The supply of a commodity is also affected by change in price of inputs used in the production of good. If the price of inputs (Wages of labour, prices of raw materials and fuel) goes up, the gross cost of production will rise and as a result the supply of the commodity decreases. On the other hand, if the price of inputs declines, unit cost of production declines and as a result the supply of the commodity increases. 

2. Change in Technology: The supply of a commodity depends on the production technology used by the firm. If there is an improvement in the production technology used by the firm, the cost of production declines. Lower cost of production increases the supply of a commodity. The use of obsolete technology raises the cost of production and consequently supply of a commodity decreases. 

3. Change in Goals of Hie firm: The supply of a commodity also depends upon the goals of firms. Their goals may be profit maximization or sales maximisation. If their goal is to maximise profits, more quantity will be supplied only at high price. But if the firms want to maximise their sales more quantity will be supplied even at the same price. Thus, change in the goals of the producers also influences the supply. 

4. Change in Government policy: The Government policy also affects the supply of a commodify. If there is an increase in excise duties and heavy taxes are imposed, the producers will be discouraged and the supply will decrease.

5. Number of Producers: If no. of firms producing a particular commodity increases market supply of the commodity will increase. When the existing firms of an industry are making huge profits, the new firms may enter the industry and the total production and supply will, thus, increase. On the other hand, in the event of losses, some firms of the industry start leaving it, the supply of the product will decline.

(a) Importance of Public Debt in India: 

1. Covering the gap between expenditure and Tax Revenue: If the Govemment’s revenue from taxes falls short of expenditure, public borrowings becomes a necessity. The excess of Government expenditure over its revenue creates a deficit in the Government Budget. The growing deficit in the Government budget has been the principal reason for public borrowings in India. 

2. Controlling Inflation: At times of inflation, the Government tries to reduce the purchasing power of consumers, so that the pressure of excess demand may be reduced. Like taxes, public debt also takes money away from people’s hand. Hence, public debt is used, side by side with taxes, as an instrument of inflation control. 

3. Controlling recessions: During recessions, people do not want to invest their money. As a result, the levels of output and employment are stagnant. The Government may borrow money from the public and invest the money in various projects. 

4. Development financing: In a less developed economy like India, the Government often has to play a leading role in economic development. For raising the necessary funds, the Government takes recourse to borrowing from public. In India, public debt has been the major source of financing the development plans. 

5. Social development: Financing is needed not only for economic but also for social development projects like education, health care etc. For this purpose also, the Government borrows from the public. 

(b) Merits of Indirect taxes: 

1. Broad Coverage: When a sales tax is imposed on a commodity, all buyers of the commodity ultimately have to pay a higher price. Hence, all consumers, irrespective of whether they are rich or poor, pay tax under this system. For this reason, it is said that indirect taxes have a broader coverage than direct taxes. 

2. Not unpopular: Indirect taxes are taxes in the dark. When a common man purchases a commodity in the market, he considers the tax inclusive price to be the price of the commodity. In other words, he is not often aware that he is paying a tax. As a result, indirect taxes are not as unpopular as direct taxes. 

3. Regulate Consumption: Indirect taxes at stiff rates can be imposed on commodities whose consumption is judged to be socially harmful (for instance liquor, drugs etc.). The prices of these commodities will then increase and the consumers will buy less of them. 

Demerits of Indirect Taxes: 

1. Not always equitable: As both the rich and the poor pay indirect taxes at the same rate, the indirect taxes often tend to be regressive. Since a poor person earns less than a rich one, the proportional tax burden on the poor is greater than that on the rich when they pay the same absolute amount in taxes. 

2. Inelasticity: Indirect taxes are less elastic than direct taxes. When an indirect tax is imposed, the Government’s revenue does not go up very much because the tax will increase the price of the commodity and the quantity transacted in the market will, therefore, decline.

Normal goods are those goods for which the income elasticity of demand become positive (i.e. > 0). It implies that the demand for such goods increases with the increase in money income of the consumer.

In economics, the word ‘land’ is defined to include not only the surface of the earth but also all other free gifts of nature. For instance, mineral resources, forest resources and, indeed, anything that helps us to carry out the production of goods and services, but is provided by nature, free of cost. In fact, ‘Land is a stock of free gifts of nature,’ 

The features of land are as follows: 

1. Supply of land is fixed: The supply of land is fixed. It is given by nature. It is true that, from time to time, we can increase the quantity of operational land available in the country by clearing forests. However, the potentially available amount of land in the country is fixed. 

2. Production of land is costless: Another peculiarity of land is that, it does not have any cost of production. It is already there, ready to be used. All other agents of production have to be produced at a cost. For instance, labour has to meet his cost of living and his cost of training and education has also to be accounted for. Land, however, is a free gift of nature. 

3. Land is immobile: A third peculiarity of land is that, it is immobile. Land can not move in the sense in which labour or capital can. Therefore, there are persistent differences between the rent of land in different regions. Such differences may be caused by differences in fertility, location etc. 

4. Land is heterogeneous: Different types of land indicate wide variations in productive capacity. It depends on the chemical composition of the soil, availability of irrigation facilities, climatic conditions etc. Hence, some plots of land may be so infertile that cultivation is not worthwhile in such cases, while some other plots of land may be very fertile.

(a) Efficiency of labour implies the quality and quantity of goods and services which can be produced within a given time and under certain conditions. In other words, productive capacity of a worker is termed as efficiency of labour. By ‘efficiency of labour’ means the productive capacity or productivity of labour. 

The efficiency of labour depends on the following factors: 

1. Climatic Factors: Climatic differences also affect the efficiency of labour. Working under extreme climatic conditions is always more difficult than working in the temperate zones. 

2. Geographical differences: Locational differences also sometimes play a significant role. A person who has been born and brought up in the plains, will find it hard to display much efficiency if he is forced to work at high altitudes hilly areas. 

3. Intellectual attributes: Mental attributes are also important. General education helps a worker in assimilating new skills and technical knowledge. Moral qualities also play a role in this connection. A worker is likely to be more efficient, the greater is his sense of discipline, self respect, self-sufficiency, punctuality etc. 

4. Working conditions: A healthy and conducive work environment increases the level of efficiency. The facilities enjoyed by the worker determine labour efficiency to a significant extent. Employer-employee relations are also an important part of the work-environment. An employer, therefore, can contribute to labour efficiency by building a cordial relationship with his workers. 

(b) Some of the quantitative credit control instruments adopted by the RBI are as follows: 

1. Bank Rate Policy: Theoretically, the bank rate is that discount rate at which the central bank of any country rediscounts any bill of exchange submitted by any commercial bank to take loans from the central bank. In case of India, it generally indicates the interest rate at which the commercial hanks borrow credit money from the RBI. 

2. Open Market Operations: This indicates the purchase and sale of Government securities or treasury bills by the RBI. At the time of inflation, the RBI sells Government securities in the open market to pump out some amount of money from circulation. Most of these securities are purchased by commercial banks and other financial institutions. 

3. Cash Reserve Ratio Requirement: According to the RBI Act 1934, every commercial bank has to keep a certain minimum cash reserve with the RBI. The RBI is empowered to vary the CRR between 3 to 15 percent of total deposits of commercial bank. The RBI increases this CRR during inflation. 

4. Statutory Liquidity Ratio [SLR]: Apart from the CRR, all commercial banks under the Banking Regulation Act 1949, are to maintain liquid asset in the form of cash in hand, cash with other banks, gold and unencumbered approved securities equal to not less than 20% of their total time and demand deposits with the RBI. This is known as statutory liquidity ratio. The RBI is empowered to raise this ratio upto 40% when the SLR is raised, the amount of loanable funds with the commercial banks declines. So, the process of credit creation by the commercial bank is checked.

(a) Two favourable impacts of inflation are as follows: 

1. Higher profits and Higher investment: Profit incomes of the producers are generally favourably affected by inflation, because they can sell their products at higher prices. The entrepreneurs and investors get added incentives to invest in productive’activities during inflation, since they can earn higher profits from such investments. 

2. Possibility of higher income for Shareholders: During inflationary periods, if the companies earn higher profits, they can declare dividends for their shareholders. Hence, the dividend income of the shareholders may also rise during inflation. 

Two unfavourable impacts of inflation are as follows: 

1. Fall in the real income of fixed income groups: Real income means purchasing power of money income. Given the money income of the fixed income groups, the real income will fall during inflation. Hence, inflation affects workers, salaried people and pension earners adversely. 

2. Inequality in the distribution of Income: The profit incomes of businessmen and entrepreneurs increase during inflation, while the real income of the common salaried people declines. So, the inequality of income and wealth becomes acute during inflation.

(b) Primary Functions of Money: 

1. Medium of Exchange: Money acts as the most reliable medium of exchange. The major function of money is to facilitate the process of exchange by removing the defects of the barter system. Money has general acceptability and has purchasing power so everyone accepts it willingly in exchange for goods and services. It enables people to purchase anything that they want in exchange for money. 

2. Measure of Value: In modem economies, money acts as a measure of value as the value of everything can be expressed in terms of money. The value of anything expressed in terms of money is known as its price. When we say that the price of a piece of cloth is Rs. 15, we mean that in order to obtain one piece of cloth we have to give up 15 units of money. 

Secondary Functions of Money: 

1. Store of Value: Wealth is usually kept in the form of money because money is the most liquid form of wealth. Since savings is usually done with a view to use the savings for purchasing some commodities or services, it is as if the values of commodities are being stored. Hence, money is called the store of value. 

2. Transfer of Value: Money is also a means for transferring a given value from one individual to another. If any person purchases a commodity (say, wheat from the shopkeeper and pays Rs. 10 per kg of wheat purchased) then the value of that commodity can easily be transferred from the buyer to the seller through a payment in terms of money.

By ‘Debt trap’ we mean a situation where the Government has to incur new public debt for the purpose of meeting the interest obligations on old debts. The Government falls into the debt trap if the outstanding amount of public debts becomes so huge that current tax revenue does not enable the Government to pay interest on public debt after meeting other current expenditure obligations.

(1)  Giffen Goods : The demand for giffen goods decreases with the fall in its price and increases with the rise in its price. This situation is known as Giffen paradox. Ex. Coarse grain, Coarse cotton cloth, etc. 

(2)   Necessities : There are some goods which are necessities of the modern life. A minimum quantity of these goods has to be purchased by the consumers irrespective to there prices. Such as foodgrain, cloth, medicine, petrol etc. 

(a) True. During Inflation, the producers gain in the short period. Usually the cost of production does not rise as fast as the price of their product and so there is an artificial margin of profit. 

(b) False. As there are a large number of buyers and sellers of the commodity so neither a single seller nor a single buyer can influence the market price. So producers are price-takers not price makers. 

(c) False. When a large change in price does not bring so much change in the demand, the demand is said to be inelastic. 

(d) True. The whole process of capital formation depends upon savings. 

(e) False. Because in case of proportional tax rate of tax remains constant, though income increases.

Perfect Market : It is a market situation when there are large number of buyers and sellers and the product is homogeneous. All the buyers and sellers have perfect knowledge of market conditions. There is no restriction on the entry and exit of the firms.

“Perfect competition prevails when demand for the output of each producer is perfectly elastic. ”

– Robinsons 

Features of Perfect Competition :

1. Large Number of Buyers and Sellers : There exists a large number of buyers and sellers. No individual buyer or seller can influence the demand of product in the market. 

2. Homogeneous Product : All firms produce homogeneous product. All the sellers have to sell their product at a uniform price. If any of the sellers sells his product at higher price, his product would become out of market. 

3. No Restriction on Entry and Exit : All the firms are free to enter and exit the market. There is a free mobility of sellers. 

4. Perfect Knowledge of Market : All the sellers and buyers have perfect knowledge of market conditions. There is a free mobility of buyers and sellers in the market. Factors of production also have free mobility. 

5. Absence of Selling and Transportation Costs : In the perfect competition, it is assumed that producers and sellers are closely situated and there are no selling and distribution costs.

(a) There is a difference between the supply of labour and that of other goods. An individual’s supply of labour may increase at first with the increase in wage rate i.e., the price of labour. In that case, the worker prefers income to leisure. However, man is not a machine. So with further increase in the wage rate (per hour), the worker may prefer leisure to income. Thus, the individual labour supply curve may be backward bending in nature. However, in case of other goods, the quantity supplied increases with an increase in product price. In that case, supply curve will be upward rising. 

(b) The bank which is given the responsibility of supervising the activities of all other banks in the economy, as well as the entire monetary system of the country, is called the central bank of the country. The Reserve Bank of India is the central bank in India. In England the Bank of England is the central bank. 

(c) By providing government subsidy to seller, supply increases because seller will be able to produce commodities at a cheaper price thus the supply curve will shift rightward. 

(d) The differences between an entrepreneur and the organiser or capitalist are: 

1. A organiser provides loan to firm so he is only a creditor whereas the entrepreneur’s job is to set up the business. 

2. An entrepreneur bears loss of gain of the business while the organiser has no link with the profit and loss. 

(e) Two important factors which affect the market element for a commodity are as follows: 

1. Pattern of income distribution: If income distribution moves in favour of the poor people, then market demand for the mass consumption items will increase. 

2. Total number of consumers: If the total number of consumers of any commodity rises, it would lead to an increase in the market demand for that commodity

(i) Supply : Supply means an amount of a commodity which a producer is ready to sell at a particular price and at a particular time. Supply is different from stock. Stock of a commodity is the total amount available with the producer whereas supply is only that part of it which the producers are willing to bring into the market.

(ii) “The law of supply states that other things being equal, the supply of a commodity increases with an increase in its price and decreases with a fall in price. ’ ’ 

The main assumptions of the law are as follows :

1. Price of other related goods should not change. 

2. Technology of production should not change. 

3. Cost of factors of production should remain the same.

(iii) 1. Prices of Factors of Production : The supply of a commodity is also influenced by the prices of factors used in the production of that commodity. A fall in the price of factors of production will reduce the cost of production which, in turn, will increase the production and supply due to rise in margin of profits. If, on the other hand, the price of factors of production rises, supply will decrease due to fall in margin of profits.

2. State of Technology : If the producers make use of improved and advanced technology in their process of production, the costs of production will come down. Total supply, thus, will increase. But against it, supply of goods using old and inferior techniques of production will fall. That is why scientific discoveries and their applications to production of commodities are being made.

3. Goal of the Firms : The supply of a commodity also depends upon the goal of firms. Their goal may be profit maximisation or sales maximisation. If their goal is to maximise profits, more quantity will be supplied at a high price. But if the firms want to maximise their sales (as they think that increased supply is a source of status and prestige in the market) more quantity will be supplied even at the same price.

Two methods to enhance the productivity of land: 

1. Investment on Land—Productivity of Land can be enhanced by undertaking investment on land. Construction of irrigation facilities is an example of investment on land. Higher the investment on land, higher will be the productivity of land in future. 

2. Scientific way of cultivation—Productivity of Land can be increased by using scientific techniques of cultivation on land. If the farmers use HYV seeds, adequate amount of fertilisers/manure, pesticides, improved agricultural tools and implements, etc. then yield of crop per hectare can be increased to a great extent.

1. Elasticity of Demand would be greater than unity (e_P > 1) 

2. Elasticity of Demand would be less than unity (e_P < 1) 

3. Elasticity of Demand would be greater than unity (e_P > 1) 

4. Elasticity of Demand would be unity (e_P = 1)

Urbanization refers to the population shift from rural to urban areas, “the gradual increase in the proportion of people living in urban areas”, and the ways in which each society adapts to the change. It is predominantly the process by which towns and cities are formed and become larger as more people begin living and working in central areas. The United Nations projected that half of the world’s population would live in urban areas at the end of 2008. It is predicted that by 2050 about 64% of the developing world and 86% of the developed world will be urbanized.

Impacts of urbanization on the environment:

1. Deforestation : Large areas of forest are being cleared for the formation of towns and cities. It will have adverse impact on environment. 

2. Increase in temperature : In cities, there is less vegetation and exposed soil, most of the sun’s energy is absorbed by buildings and asphalt leading to higher surface temperatures. 

3. Decline in water quality : When rain occurs in these large cities, the rain filters down the pollutants such as CO₂ and other green house gases in the air onto the ground below. Then, those chemicals are washed directly into rivers, streams and oceans, causing a decline in water quality and damaging marine ecosystems. 

4. Pollution : Vehicles, factories and industrial units in the urban areas leads to pollution of. air, water and soil.

(a) The two factors on which supply of labour depends are: 

1. Population: The most important factor affecting the supply of labour in a country is its population. The larger the population, the larger will be die number of persons who will have the capacity to perform physical or mental work. Hence, the larger will be the supply of labour. 

2. migration (Out-migration) and Immigration (in-migration): Growth of population, is determined not only by its natural growth but also by the out migration and in migration of people. If some people leave the country, the population goes down, and if some people enter the country from outside, the population goes up. In India, the in-migration of refugees after the partition in 1947 and the Bangladesh war of 1971 led to substantial increase in the supply of labour. 

(b) Two functions of capital are: 

1. It helps the process of division of labour: Capital makes the system of division of labour more refined. It is only when there is an abundance of capital that is possible to assemble a large number of workers at one place. 

2. It expands employment: Since capital expands production, it also expands employment. Thus, if we are to reduce the volume of unemployment in the country, we must pay attention to capital formation in a country. 

(c) Determines the agricultural output: The agricultural output of a country is determined by the availability of cultivable land in a country. The production of food grains, cash crops, forest products, horticulture crops, etc. are determined by the supply of cultivable land in a country. 

(d) Bandwagon effect: The consumer’s demand for a good may be affected by the tastes and preferences of the social class to which he belongs. If playing golf is fashionable among successful businessmen, then, as the price of golf ball rises, businessmen may increase his demand for the golf balls in order to show that he is a successful businessmen. This is known as Bandwagon Effect. 

(e) Division of labour makes large scale production possible. Indeed, large scale production requires division of labour. If a car manufacturing company, for instance, wishes to make 10,000 cars in a year, but does not introduce division of labour in its factory it will have to hire so many workers that it will not be an economic decision for company. It is by virtue of division of labour that the company can produce 10,000 cars per year with a reasonable number of workers.

(a) Three positive aspects of the privatization of commercial banks in India: 

1. This process would help public sector banks to take proper credit decisions (or lending operations) in an independent manner. They can have greater flexibility [ in choosing sectors with higher returns and better recoverability. 

2. When banks will be in private hands they will open up branches in different areas with better facilities to earn profits and to serve people better than their competitors. 

3. A competitive environment will be created in the banking sector because these banks will face many other private sector commercial banks. Hence, each public sector bank, which has been privatised, will try hard to survive and evolve new 1 methods to improve their efficiency. As a result, their competitive strength will increase and they would be able to render better quality service. 

Two negative aspects-of the privatization of commercial banks in India. 

1. Small Profits: Different nationalised commercial banks suffered huge losses over the years because of the poor recovery of loans and the growing volume of their non-performing assets. 

2. Despite the huge growth in deposit mobilization, the credit-deposit ratio indicated a declining trend. This implies that the nationalized banks have paid greater attention to deposit mobilization than to credit deployment. 

(b) Capital is defined as “All those man-made goods which are used in further production of wealth.” Thus, capital is a man-made resource of production. 

1. Economic Development: The most important function of capital is to promote the economic development of a country. Economic development can not take place without capital formation. For this purpose, adequate funds are very essential. 

2. Provision for Subsistence: When the producer invests capital, he gets a return on it only when he dispose off the products, but the workers have to subsist during this period, for which the wages are paid from the capital money. Thus, when money from consumers reaches the producer, it is again accumulated as capital money. 

Two functions of capital are: 

1. It helps in the process of division of labour: Capital makes the system of division of labour more refined.lt is only when there is an abundance of capital that is possible to assemble a large number of workers at one place. Only then cap the work be divided into many small parts, and a particular worker can be entrusted with a particularly small part of the work. 

2. It expands employment: Since capital expands production, it also expands employment. Thus, if we are to reduce the volume of unemployment in the country, we must pay attention to capital formation in a country. 

3. Provision for Appliances: Capital is used to provide tools and implements for use by the workers, when they are needed. It is clear that these things are essential for production, without their aid, large-scale production is impossible. 

4. Provision for Raw Materials: A part of the capital is used for arrangement of raw materials for production purposes. Every concern must have on hand a sufficient supply of raw-materials of good quality and in adequate quantity.

If commodity X and Y are complementary goods, cross elasticity of demand would be negative. It means that an increase in the price of X would lead to a fall in the demand for Y and vice versa.

1. Cash Credit: It is a type of loan which is given to the borrower against his current assets such as shares, stocks, bonds etc. Such loans are not based on personal security. They have to credit the account in the name of the borrowers and allow them a certain limit to withdraw money. The interest is charged on the amount withdrawn by the borrower and not on the entire amount of the loan sanctioned. 

2. Discounting bills of exchange: This is another particular type of lending by modem banks. Through this method, a holder of a bill of exchange can get it discounted by the bank. In a bill Of exchange, the debtor accepts the bill drawn upon him by the creditor and agrees to pay the amount mentioned on maturity. After making some marginal deductions, the bank pays the value of the bill to the holder. When bill of exchange matures, the bank gets its payments from the party which had accepted the bill.

A commercial bank in an institution that accepts deposits of money from the public, withdrawal by cheque, and uses the money so collected for lending to the household, the firm and the government. 

Commercial banks provide credit facilities through the following methods :

(i) Cash Credit : In cash credit, the bank advances a ‘cash loan’ a specified limit to the customer, against a bond or any other security. A borrower is required to open a current account and bank allows the borrower to withdraw upto the full amount of the loan. The interest is charged only on the amount actually utilized by the borrower and not on the loan sanctioned.

(ii) Loans : A loan is a specified amount sanctioned to the credit of a borrower for a fixed period. However, before sanctioning the loan, the bank is required to ascertain and satisfy itself about the ability of the borrower to repay according to the soundness of his scheme or business, and the genuineness of his purpose. Invariably, a loan is granted against some kind of security of assets or personal security of the borrower and the interest is charged on the full amount sanctioned as loan, irrespective of the fact, whether full amount or part of it has been used. In case of loans, the borrower is provided with the facility to repay the loan in installments or as a lump-sum.

(iii) Overdraft Facility : The overdraft facility is allowed to the depositor maintaining a current account with the bank only. According to this facility, a borrower is allowed to withdraw more amount than what he has deposited. The excess amount so withdrawn has to be repaid to the bank in a short period and that too with interest. The rate of interest is usually charged more than that charged, in case of loans. However, the overdraft facility is given only against security of some assets or on personal security of the customer.

(a) Production: The process of creating various utilities which are consumed by the people of the country is called production. It includes the production of material goods only. “An act of creating utility is known as production”. There are five factors of production—land, labour, capital, enterprise, and organization. 

The three factors which determines land productivity are as follows:

1. Natural fertility of land: Some plots of land are more fertile than others. Fertile land yields greater amount of output than the less fertile land. Land is a free gift of nature. 

2. Proper use of land: Productivity of land also depends upon the use of land which the land is put to, e.g. some land may be more suitable for the cultivation of rice than for the cultivation of wheat. Supply of land is fixed. 

3. Security of tenancy: Productivity of land often depends on the security of the tenant. If the tenant is not certain about the tenancy for the next year, he will not be enthusiastic in working over it and investing money on it, because by the time the investment would start giving results he may no longer remain the tenant.

(b)

1. Land: Basically, land is available from the nature as free of cost. In the initial stages, man paid no price for the land acquired by him. However to improve the usefulness or fertility of land or to make some improvements over land, some expenditure is to be incurred. But as such, it is available at no cost from nature. Its supply is fixed but it is indestructible and passive factor of production.

2. Labour: Labour is an active factor of production as labour can easily produce anything on its own without the help of land or capital because it is a living entity. The labourer and his labour are inseparable. The labour sells his services only not himself. Labour is perishable.

1. Capital: It is a passive factor of production because it remains ineffective without co-operation of labour. Capital is man-made and is bom out of savings done by man. It has the highest mobility. The supply of capital is elastic and can be adjusted easily and quickly according to demand. On the other hand supply of land is fixed, and supply of labour can neither be increased nor decreased quickly.

3. Entrepreneur: Entrepreneur is a person or group of persons controlling the policy of a firm. He conceives the idea of business, arranges various resources, combines different factors of production and makes every effort to convert his business idea into reality. Moreover, he is the one who bears the risk of the business.

Critical angle : It is the angle of incidence in the denser medium corresponding to which the angle of refraction in the rarer medium is 90°.

The window of my bedroom was an opening to various scenes at different times of the day. I could sit for hours together at the window and enjoy the diverse sights, sounds and smells. It was a holiday and I didn’t have to go out anywhere so the whole day I decided to enjoy. 

At 6 am my eyes opened to the chirping of the birds, the early morning sunrise, spreading its different shades of red and yellow colour on the horizon of the sky. It was a treat to the eyes and the soul. The fresh and pure air blowing into the room filled me r with freshness and spirit. I rushed to the window to hungrily inhale some more of it. To my surprise, even on early Sunday morning there were a big number of people in the park across the street outside my house. Some were walking some were doing exercises and a few were doing yoga. There was a group of children who had come prepared with . their cricket and badminton kits. I felt a little guilty that there were people working hard to maintain their health and hygiene and I had just got up from my bed. The sight of smiling flowers and the dew drops on the petals of roses and marigolds were a real pleasure. The gardener too was up and doing his work of taking care of the various beds. of flower, plucking the unwanted weeds, watering the plants and priming and trimming the hedges. 

On the road, I could see the movement of the people who had started their work early in the morning. The milkman, the newspaper hawker, the peddlers were selling vegetables, fruits, grocery, articles etc. A Sunday or a Monday made no difference. There was no holiday for them and supply had to be made to meet the demands. The sweepers, were busy doing their work diligently. The tractors too were on duty picking up the garbage collected in heaps at intervals on both sides of the street. As time rolled on, the scene both in the park and the street changed. Most of the people from the park had returned towards their homes. Just a few late comers could be seen hurrying up with their exercises. On the street, there was a little less rush it being, a Sunday. People were going to various places of worship. Now a lot of auto rickshaws, cycle rickshaws, pedestrians, buses and other different kinds of transport were plying on the street. 

In the afternoon the sight outside was not very entertaining. The honking of horns of vehicles madly moving up and down the streets could be heard. It seemed there was a mad race going on or as if everyone was rushing to save their lives from a dragon. In the evening with the lights on, everywhere it seemed that the festival of light Diwali had arrived. The park, the street, the shops and house were all illuminated with bulbs and LED lights. People were rushing to finish their work and return home. The birds in the sky were moving in groups back to their nests. The insects were buzzing around making a whistling sound right below my window. The scene from my bedroom window at different times of the day is a delightful time’pass keeping me busy when I wish to relax and do nothing much of importance.

(i) boolean 

(ii) String

a = a+ a++ + ++a + – – a + a – – ; 

= 7 + 7 + 9 + 8 + 8 = 39

y = false. 

data type of y is boolean.

(i) Math.sin()

(ii) trim ()

(i) Output: 5 10 

(ii) 3 times

Catch block is used as exception handler in exception handling. We can put the code to deal with the execution that might arise, in this block. Catch block must appear just below the tiy block.