CLASS XI – CHETTINAD VIDYASHRAM

ECONOMICS & STATISTICS – QUESTION BANK

1. ASSERTION (A): The slope of demand curve describes
consumer behavior
REASON (R) : The consumer increases his or her quantity
demanded as the price goes up.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

2. ASSERTION (A): Unequal Distribution of income shifts the

demand curve to its left
REASON (R): If there is unequal distribution of income, All
sectors of society will not be able to demand Goods and services

a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

3. ASSERTION (A): All Attainable combinations of Good X &

Good Y are below the budget line of the consumer
REASON (R): Attainable combinations of Good X and Good Y
are below as well as along the Budget line.

a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.
4. ASSERTION (A): MU can never be Negative
REASON (R): MU can become negative when TU falls with
increase in consumption of a commodity

a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

5. ASSERTION (A): Elasticity of demand of a good depends on

the nature of that commodity
REASON (R): Elasticities are of 5 types
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

6. ASSERTION (A): A Utility is directly linked with the

usefulness of a commodity.
REASON (R): A commodity may not be useful, yet It may have
utility for a particular person like cigarettes.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.
7. ASSERTION (A):MRS Remains same along Indifference curve.
REASON (R): It diminishes along the indifference curve

a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

8. ASSERTION (A): Slope of Indifference curve is different at

different points of curve.
REASON (R): It happens because of Slope of Indifference
Curve is measured by MRS which diminishes along the curve.

a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

9. ASSERTION (A): MU can never be Negative

REASON (R): When consumption is increased beyond the point
of satiety, MU becomes Negative
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.
10. ASSERTION (A): Demand for Fresh flowers on Mother’s
day is relatively Priced Inelastic compared with other days
REASON (R): The Degree of necessity of a Good or service
will affect the value of Price Elasticity of demand. Products that
are regarded as essential tend to be relatively price elastic. It
alsoi a
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

11. ASSERTION (A): According to LDMU, MU diminishes

as we continuously consume the standard units of a commodity.
REASON (R): As we increase the consumption of a
commodity, the intensity of desire to have that commodity
increases.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

12. ASSERTION (A): In difference curve is negatively sloped

from Left to Right.
REASON (R): Consumption of both the goods cannot be
increased simultaneously to maintain same level of satisfaction.
a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.
13. ASSERTION (A): Rise in price of Burger at Burger King
raises the demand for Burger at McDonalds.
REASON (R): There is a direct relationship between the
demand for a good and the price of the substitute
a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

14. ASSERTION (A): Consumer demand will change only if

price of the product changes.
REASON (R): Consumers are more sensitive towards price
changes
a) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

15. ASSERTION (A): Consumer is willing to less and less

units of a good to gain an additional unit of the Other good.
REASON (R): The utility that he gets from consuming an
additional unit of a good goes on diminishing
a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

16. ASSERTION (A): Demand for car is elastic.

REASON (R): Because it is a luxury good and its consumption
may be postponed when it appears to be costly.
a) Both Assertion (A) and Reason (R) are true and Reason (R)
is correct explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true and 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.

CASE STUDY -I

Consumer budget States the real income or or purchasing power

of the consumer from which he can purchase certain quantitative
bundles of two goods at A given price. Budget line is a graphical
presentation of all possible combination of two goods which can
be purchased with given income and prices such that the cost of
each of these combinations is equal to the money income of the
consumer.

1. The bundles of the budget set line is there on or below the

budget line.(True or False)
False

2. Explain why the budget line is downward sloping.

Budget line slopes downward because with the given money
income more of one good can be bought only by decreasing
some units of the Other good.
3. The consumer is in equilibrium at a point where the budget line
a) Is Above an indifference curve.
b) Is Below an indifference curve
c) Is tangent to an indifference curve
d) Cuts an indifference curve.

CASE STUDY -II

Common examples of elastic products are consumer

discretionary such as a brand of cereal. Certain food products are
not a necessity. For instance, it's reasonable to argue that people
would stop buying at a particular brand of cereal if its price shot
up dramatically, particularly if other comparable products do not
follow suit and kept their price the same one.
1. When demand is perfectly elastic the shape of the demand curve
is.
a) Parallel to x axis
b) Parallel to Y axis
c) Steeper
d) Flatter
2. Demand for necessities is perfectly elastic (True or False)
False
3. In case of _____ and infinite demand at a particular Price and
Demand become zero with a slight rise in price.
4. Match the items given under coloumn I with items under
Column II
Column I Column II
1.Steeper curve a) Higher elasticity
2. Unit Elastic Demand b) Ed<1
3. When substitutes are c) Ed = Infinite
available
4.Perfectly Elastic Demand d) Rectangular HyperBola
Ans: (i) – b) (ii) – d (iii) – a) iv) - c)
CASE STUDY -III

When a consumer consumes various goods and services then

there are some combinations which gave him exactly the same
level of satisfaction however every higher or lower level of
satisfaction can be shown on different curves. This curve is
convex to the origin because of Diminishing marginal rate of
substitution.

1. Define the curve which is mentioned in the above case.

Indifference curve refers to the graphical representation of
various alternative combinations of bundles of two goods
among which the consumer is indifferent.
2. State the other two properties of the curve which is not
mentioned in the paragraph
a) It slopes downward.
b) higher curve represents higher level of satisfaction
3. Why MRS tends to decline in the above case.
Marginal rate of substitution tends to fall because of the
law of diminishing marginal utility.
4. Why the curve never inter-sect each other
As two Indifference curves cannot represent same level of
satisfaction, they cannot intersect each other.

CASE STUDY -IV

Demand for a commodity
is affected by a number of factors like change in its own price,
change in income of the consumer, change in prices of related
goods etc.,
Elasticity of demand refers to the percentage change in demand
for a commodity with respect to change in any of the factors
affecting demand for the commodity. Out of various
determinants of the demand there are three quantifiable
determinants of demand that is price of the given commodity,
price of the related good and income of the consumer. These are
the three dimensions of elasticity of demand.
1. Why is demand for water inelastic?
Because it is a necessity
2. Why is price elasticity of demand is generally negative.
It is because of inverse relationship between price and
quantity demanded.
3. If two demand curves intersect each other, Which one has
the higher price elasticity.
When two demand curves intersect then the flatter curve is
more elastic
4. Give the formula which provide relationship between
elasticity of demand and the slope of demand curve.
Elasticity Of Demand = - 1 / Slope of DD curve X(P/Q)

CASE STUDY – V
Mr. Ram wants to consume 2 goods. The Price of the 2 goods is
Rs 4 and Rs 5 respectively. His income is Rs 20.
1. Write down the Equation of the Budget line.
4X + 5Y = 20
2. How much of goods can Mr. Ram consume, if he spends his
entire income on that good.
Max units of good = 20/4 = 5 Units
3. How much of Good 2 can he consume if he spends his entire
income on that good.
Max units of good 2 = 20/5 = 4 units
4. What is the slope of the Budget line.
Negative Price of X / Price of Y = 4/5 = 0.8
CASE STUDY – VI
Demand for onions is constant and sometimes its increasing due
to seasons like festivals. Consumption of onions in India is
subject to fluctuations on account of religious
considerations .consumption of onions tends to decline when
other vegetables are available at affordable prices the amount of
 decline is considered as minimal are there are no substitute to
onions, the demand considered as inelastic in nature.
1. Why is Demand for Onion is Inelastic.
No close substitutes.
2. Increase in Demand for onions during festivals is
___________ ( Change in Demand/ Change in QD)
3. The demand for onion
4. is considered as Inelastic, Then Ed = _______ ( 0, 1,>1,<1).
5. A commodity with no substitutes show high Elasticity of
demand (True/False) .

STATISTICS
1. Assertion(A): The one single value that reads the
characteristics of the complex and varied of data is called
average or central value.
Reason(R ): An average is a figure that represents the whole
group. Thus, it is called a measure of central tendency or
measure of location or just briefly average.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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.

2. Assertion(A):Tabulation helps in making comparisons easier.

Reason (R ): Data presented in tabular form having rows and
columns help in comparing various data.
a. Both assertion (A) and Reason(R ) are true and Reason is the
correct explanation of Assertion (A)
b. Both Both Assertion(A) and Reason (R ) are true Reason (R )
is Assertion (A) and Reason (R ) are true and 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.

3. Assertion (A): Arithmetic mean cannot be calculated when

open-end classes are given.
Reason: (R ) : Averages are used in our daily life.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
4. Assertion (A) : Arithmetic mean cannot be calculated when
open-end classes are given.
Reason (R ): Averages are used in our daily life.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
5.Assertion: (A) Arithmetic mean is a rigidly defined value.
Reason (R ) : An average helps in comparing one set of data with
the other.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
6. Assertion (A): Arithmetic mean can be used as an average in
all situations.
Reason (R ): Various tools of statistical analysis like standard
deviation, correlation etc. are based on averages.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is
the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
7. Assertion(A): Arithmetic mean cannot be located graphically.
Reason (R ): Averages helps in making decisions and in planning
in various areas.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
8. Assertion (A): Like the kabadiwallah’s junk, the unclassified
data or raw data are highly disorganized.
Reason (R ): They are often very large and cumbersome to
handle.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is
the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
9. Assertion (A): Raw data is classified in various ways
depending on the purpose. They can be grouped according to
time.

Reason(R ): They cannot be measured. Yet these attributes can

be classified on the basis of either the presence or the absence of
a qualitative characteristic.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
10.Assertion (A) : Classification of things is become
advantageous in our daily life.
Reason (R ): because classification arranges and presents huge
volume of unwieldy things in meaningfulo and condensed form.
a. Both Assertion(A) and Reason (R ) are true Reason (R ) is
the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R ) are true and 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
CASE STUDY/ REPORT BASED (01)
REPORT- 1
One of the most important objectives of statistical analysis is to
obtain a single representative value. The one single value that
reads the characteristics of the complex and varied mass of data is
called average or central value. The Value always falls between
the lowest and highest values of the data. It is generally located
in the centre or middle of the observations. An average is a
figure that represents the whole group. Thus, it is called a
measure of central tendency or measure of location or just briefly
average.
Report – 1
The word average is used by us in everyday life. For example,
the average marks of students in a class, average income of
factory workers in a factory, average population in factory,
average rainfall in an area. The averages occupy an important
place in statistics. Many other techniques of statistical analysis
depend upon this measure.
ANSWER THE FOLLOWING QUESTIONS:
1. Average value of given variable is known as:
(a) Median
(b) Mean
(c) Mode
(d) Index number
2.___________is used when the sum of deviations from the
averages should be least (Mean/Mode)
Answer: Mean
3. State one object of an average
Answer: To present huge mass of data in a summarized form.
4. What do you mean by measure of Central tendency?
 Answer: A measure of Central tendency is a single value which
represents an entire set of data.
CASEC STUDY – 2
The Kendriya vidyalaya Sangathan is a system of premier
central government schools in India that are instituted under the
aegis of the Ministry of Education (MHRD), Government of
India. As of October 2020, it has a total of 1239 schools. It is
one of the world’s largest chains of schools. The system came
into being in 1963 under the name ‘central Schools’. Later, the
name was changed to Kendriya Vidyalaya. It is a non-profit
organization. Its schools are affiliated to the Central Board of
Secondary Education (CBSE). The objective of KVS is to cater
to the educational needs of the children of transferable Central
Government employees including Defence and Para-Military
personnel by providing a common progrmme.
REPORT – 2
Commissioner of Regional Office Jaipur prepare a table of the
marks obtained of 100 students which is given below.
Marks obtained No. of students
00-20 14
20-40 19
40-60 21
60-80 29
80-100 P
He was told that mean marks of a student is 53.
ANSWER THE FOLLOWING QUESTIONS:

(i) How many students got marks between 80-100?

(a) 21
(b) 38
(c) 17
(d) 26
 Answer: Since numbers of students are 100,
14+19+21+29+P = 100
83+P = 100
P=100 – 83 = 17 Thus (c ) is correct option.

(ii) What is the lower limit of model class?

(a) 20
(b) 40
(c) 60
(d) 80
Answer: Class 60-80 has the maximum frequency 29, therefore
this is model class. Lower limit of this class is 60
Thus (c ) is correct option.
(iii) What is the value of median marks?
(a) 58
(b) 62
(c) 65
(d) 72
Answer: Now 3Md = Mode + 2 Mean
68 + 2 x 53 =
Median = 174/3 = 58 Hence median is 58. Thus (a) is correct
option.
iv) What is the upper limit of median class?
a) 20
b) 40
c) 60
d) 80
Answer: Since median is 58 and corresponding class is 40-60.
Upper limit of this class is 60. Thus (c ) is correct option.
Case study- 3 Report Based
If the value of large number of items in a series is small, but that
of one or two items is large or most of the values are located at
he middle of the series or are related to qualitative facts, then
arithmetic mean may not be useful. In this case the use of
median is the best option. If no importance is to be attached to
the highest and lowest items of a series, then the use of median
or mode should be most suitable. If in a series of items are
similar to each other then the use of mode is not suitable.
ANSWER THE FOLLOWING QUESTIONS:
1.If a series has a very small values, which measures of central
tendency is more suitable?
a) Arithmetic Mean
b) Median
c) Mode
d) None of these
Answer: (a) Mean
2.Median is most suitable measure of central tendency when:
a) The value of large number of items in a series is small, but
that of one or two items is large
b) Most of the values are located at the middle of the series
c) Related to qualitative facts
d) All of these
Answer: (d) All of these
3.If no importance is to be attached to the highest and the lowest
items of a series, which measures of central endency is more
suitable?
a) Arithmetic Mean
b) Median
c) Mode
d) Both (b) and (c)
Answer: (d) Both (b) and (c )
4.If in a series of items are similar to each other, which measure
of central tendency is not suitable?
a) Arithmetic Mean
b) Median
c) Mode
d) None of the above
Answer: (c ) Mode