Tamil Nadu HSC (Class 12) Economics — practice by topic

1. Economics is classified into two branches, micro economics and macro economics. 2. Ragnar Frisch, a Norwegian economist, coined the words micro, meaning small, and macro, meaning large, in the year 1933. 3. He was a co-recipient of the first Nobel Prize in Economic Sciences. 4. Keynes shaped modern macro economics but did not coin the term, and Smith and Marx belong to the discussion of economic systems. _Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 1 "Introduction to Macro Economics", §1.1_

1. Macro economics in its modern form began with John Maynard Keynes. 2. His book, The General Theory of Employment, Interest and Money, was published in 1936. 3. Keynes offered an explanation for the fallout from the Great Depression, when goods remained unsold and workers unemployed. 4. For this reason the textbook regards Keynes as the Father of Modern Macro Economics, while Frisch is credited only with coining the terms. _Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 1 "Introduction to Macro Economics", §1.1_

1. A capitalist economy is also termed a free economy, or laissez faire, where the role of government is minimum and the market determines economic activities. 2. The textbook names Adam Smith as the Father of Capitalism. 3. Karl Marx is named as the Father of Socialism, so he is the paired distractor here. 4. Manfred Steger is credited with coining the term globalism in 2002, not with capitalism itself. _Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 1 "Introduction to Macro Economics", §1.7.1_