CLASS- 11TH

SUBJECT- ECONOMICS

TIME: 3 HOURS MM: 80

General Instructions:

1. This question paper contains two sections:

2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.

3. This paper contains 4 Short Answer Questions type questions of 3 marks each to he
answered in 60 to 80 words.

4. This paper contains 6 Short Answer Questions type questions of 4 marks each to he
answered in 80 to 100 words.

5. This paper contains 4 Long Answer Questions type questions of 6 marks each to he
answered in 100 to 150 words.

Section – A

Question 1.
Read the following Assertion (A) and Reason (R) and choose the correct alternative: [1]
Assertion (A): Diagrammatic representation of data makes the data very simple and
intelligible.

Reason (R): It helps in the proper analysis of the data and helps in the comparative study of
the data.
Alternative:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

Question 2.
Airways publish data regarding progress of airways. What type of data is this for an
investigator? [1]
(A) Primary
(B) Secondary
(C) Tertiary
(D) None of these

Question 3.
Wealth oriented definition of Economics was given by: [1]

(A) Adam Smith

Question 4.
There are two statements given below, marked as Statement (I) and Statement (II). Read the
statements and choose the correct option: [1]
Statement -I: Microeconomics studies the economic behaviour of individual economic units.

Statement – II: Estimation of national income can be learning in microeconomics studies.

Question 5.
Statistics is a science as well as ………………….. . [1]
(A) Art
(B) Philosophy
(C) Psychology
(D) Mathematics

Question 6.
Identify the following diagram:
(A) Pie Diagrams
(B) Deviation Bar Diagram
(C) Percentage Bar Diagram
(D) Sub-divide Bar Diagram

Question 7.
Identify the correct pair of terms with their common symbols from the following Columns I
and II: [1]

Column I Column II

A. Frequency of the given variables 1. A

B. Assumed Mean 2. f

C. Deviations from the assumed mean 3. d

D. Mean 4. d’

(A) A – 1
(B) B – 2
(C) C – 3
(D) D – 4
Question 8.
Which of the following statements is true about the significance of Economics: [1]
(A) Economics helps in the study of the laws of motion.
(B) Economics helps in the study of man and environment.
(C) Economics helps in saving the mankind.
(D) Economics helps in solving the problem of distribution.

Question 9.
There are two statements given below, marked as Statement (I) and Statement (II). Read the
statements and choose the correct option: [1]
Statement (I) – Consumer Price Index is used in calculating purchasing power of money.
Statement (II) – CPI also known as cost of living index:
(A) Statement I is true and statement II is false
(B) Statement I is false and statement II is true
(C) Both statements I and II are true
(D) Both statements I and II are false

Question 10.
With the help of an ogive curve, we find: [1]
(A) Arithmetic Mean
(B) Median
(C) Mode
(D) All of these

Question 11.
Distinguish between random sampling and systematic sampling. Give suitable examples. [3]

Question 12.
Calculate median from the following series: [3]

OR
If the arithmetic mean of the data given below is 28, then find out the missing frequency:
 X Frequency (f)

0-10 12

10 – 20 18

20 – 30 27

30 – 40 f

40 – 50 17

50 – 60 6

Σf = 80 + f

Question 13.
Explain any three merits of a statistical table. [4]
OR
Explain the definition of Economics given by Robbins?

Question 14.
Calculate the median from the following data: [4]

Marks No. of students

More than 0 50

More than 10 42

More than 20 38

More than 30 28
 More than 40 16

More than 50 3

Question 15.
“Different index numbers are constructed to fulfill different objectives and before setting to
construct a particular index number, one must clearly define one’s object of study.”
Elaborate the problems which are faced in construction of Index number of prices. [4]
OR
Statistics are figures, but all figures are not statistics’. Justify the statement.

Question 16.
(a) Why do we need an index number? [3]
(b) What are the desirable properties of the base period? [3]
OR
(a) Discuss the characteristics and limitations of Index Numbers.
(b) What is meant by Consumer Price Index? Explain any two uses of CPI. [3]

Question 17.
(a) The following table shows the estimated sector real growth rates (percentage change
over the previous year)
in GDP at factor cost. [3]

Year Agriculture and Allied Sectors Industry Services

1994 – 95 5.0 9.2 7.0

1995 – 96 0.9 11.8 10.3

1996 – 97 9.6 6.0 7.1

1997 – 98 1.9 5.9 9.0

1998 – 99 7.2 4.0 8.3

Represent the data as multiple series graph.

Section – B

Question 18.
Identify the complimentary goods from following: [1]
(A) Tea and Coffee
(B) Butter and margarine
(C) Computer hardware and software
(D) Milk and cold drinks

Question 19.
Identify the false statement regarding price elasticity of demand: [1]
(A) Estimation of price elasticity of demand is useful for trade union.
(B) Giffen goods have a positive price elasticity of demand.
(C) Necessities and medical treatments tend to be inelastic.
(D) Price elasticity is the ratio between income and quantity demanded.

Question 20.
“There are legal barriers to the entry of new firm”. [1]
Identify the above form of market.
(A) Perfectly competitive markets
(B) Monopoly markets
(C) Monopolistic form of market
(D) Oligopoly markets

Question 21.
Identify the under – utilisation of resources in production possibility curve [1]
(A) Point – A
(B) Point – B
(C) Point – F
(D) Point – G

Question 22.
Which of the following is cause of an increase in quantity demanded: [1]
(A) Decrease in the price of the product
(B) Increase in consumer’s income
(C) Increase in price of substitute goods
(D) All of these

Question 23.
There are two statements given below, marked as Assertion (A) and Reason (R). Read the
statements and choose
the correct option: [1]
Assertion (A): MC should cut MR from below.
Reason (R): After equilibrium point MC should be greater than MR or MC is rising.
Alternatives
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of
Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

Question 24.
There are two statements given below, marked as Statement (I) and Statement (II). Read the
statements and choose the correct option: [1]
Statement – I: Explicit and implicit are examples of selling cost of goods and services.
Statement – II: Imputed interest on self-finance is implicit cost.
Alternatives
(A) Statement I is true and Statement II is false
(B) Statement I is false and Statement II is true
(C) Both statements I and II are true
(D) Both statements I and II are false

Question 25.
Which of the following statement is incorrect regarding law of demand? [1]
(A) Price and quantity demanded have inverse relation.
(B) A consumer buy less of a commodity when his tastes shifts against the commodity.
(C) When price of a commodity increases, the demand of inferior goods decreases.
(D) None of the above

Question 26.
There are two statements given below, marked as Statement (I) and Statement (II). Read the
statements and choose the correct option: [1]
Statement -1: An economy can never operate outside the PPF with the given resources and
technology. Statement – II: The PPF represents the concepts of scarcity.
Alternatives
(A) Statement I is true and Statement II is false
(B) Statement I is false and Statement II is true
(C) Both statements I and II are true
(D) Both statements I and II are false

Question 27.
Identify the correctly matched examples from Column I to that of Column II [1]

Column I Column II

A. Characteristic of PPC 1. All the resources are fully and efficiently employed.

B Assumption of PPC 2. No change in technology.

C. Property of PPC 3. Upward rising.

D. Definition of PPC 4. Device used to solve the problem of the economy

Question 28.
Comment on the statement – “There is perfect knowledge of everything in a perfectly
competitive market – both
buyer and seller have perfect knowledge about market of goods and inputs used in
production.” [3]

Question 29.
“In the long run a perfect competitive firm can never earn super-normal profits.” Justify. [3]
OR
Explain the effects of ‘maximum price ceiling’ on the market of a good. Use diagram.

Question 30.
Price elasticity of demand of a good is -1. At a price of ₹10 per unit its demand is 500 units.
At what price will its demand increase by 20 percent? [4]

Question 31.
Calculate Average Variable Cost at each level of output: [4]

Output (Units) Marginal Cost (₹)

1 24

2 20

3 16

4 12

5 18

6 30
OR
Distinguish between positive economics and normative economics. Give an example of each.

Question 32.
Explain the change that will take place in the market when market price of goods is greater
than its equilibrium price. Use diagram. [4]

Question 33.
(a) Distinguish between a centrally planned economy and a market economy.
(b) What do you understand by positive economic analysis?
(a) What do you mean by the production possibilities of an economy?
(b) Differentiate between Cardinal Utility and Ordinal Utility.

Question 34.
Read the passage given below and answer the questions that are followed: [6]
A price floor is the lowest legal price that can be paid in a market for goods and services,
labour, or financial capital. Perhaps the best-known example of a price floor is the minimum
wage, which is based on the normative view that
someone working full time ought to be able to afford a basic standard of living.
(a) Define Price Floor. What is the common purpose of fixation of floor price by the
government? Explain any
one likely consequence of this nature of intervention by the government. [3]
(b) Discuss “surplus amount of production as a direct consequence of price flooring”.