TN State Board 12th Economics Question Paper 2025

Primary deficit is calculated as Fiscal Deficit minus Interest Payments. Hence, the correct formula is $\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payment}$. Option (a) is incorrect because it gives the overall deficit concept, not primary deficit. Option (c) is not a valid definition. Option (d) is also incorrect.

The 2016 demonetization in India included the denominations of ₹500 and ₹1000. These were declared invalid legal tender on 8 November 2016. Hence, option (a) is correct. Options (b) and (c) are wrong because those denominations were not demonetized in 2016.

The core of the classical theory of employment is the Law of Markets, also known as Say's Law. It states that supply creates its own demand, implying that the economy tends toward full employment. Therefore, option (b) is correct. The other options are not the central principle of classical employment theory.

The International Monetary Fund (IMF) was established as an outcome of the Bretton Woods Conference held in 1944. This conference laid the foundation for post-war international economic cooperation. Therefore, option (a) is correct. The other conferences mentioned are not related to the founding of the IMF.

The primary sector refers to activities that are directly dependent on natural resources, such as agriculture, forestry, fishing, and mining. Among the options, agriculture is the correct example of the primary sector. Therefore, option (d) is correct. Construction, trade, and industry belong to other sectors.