SAMPLE QUESTION PAPER 1 Question Paper for CBSE Class XI

Highly Simulated Sample

A

ECONOMICS
General Instructions
A and B are compulsory. There are internal choices
in questions of 1 mark,
All questions in both the parts
marks and 6 marks.
3 marks, 4 Questions carrying l mark each.
1-10 and 18-27 are Objective Type
nos.
.Question
nos. 11-12 and 28-29
are Short Answer Type I Questions carrying 3 marks each.
.Question
30-32 are also Short Answer Type II Questions carrying 4 marks each.
.Question nos. 13-15 and 6 marks each.
33-34 are Long Answer Type Questions carrying
.Question nos. 16-17 and

Max. Marks : 80
rime: 3 hours

PART A
inCreased by 'k, then what will be
given series is 'k. If all the item values of series are
Median of a
(1)
the new median?

(a) 2k (b)H
(c) k +2
(d) Can't be determined
method of studying correlation is
Or Non-mathematical
method (b) Karl Pearson's method of correlation
(a) Scatter diagram
(d) None of these
(c) Spearman's rank correlation
2. Index of industrial production is a.... of quantitative relative. (1
(a) simple average (b) weighted average
(c) Both (a) and (b) (d) None of these
3. I n . . method of primary data collection, the investigator can make necessary adjustment in his set
(1)
of questions.
(a) Direct personal investigation (b) Indirect oral investigation
c) Telephone interviews (d) None of these

4. Read the following statements Assertion (A) and Reason (R). Choose one of the correct allernatives
given below
Assertion (A) Median can be located from less than ogive by taking half of total number of items in
the series.
Reason (R) Quartiles are one-fourth and three-fourth of total number of items given in a
distribution.
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
 Allinone | ECONOMICS Class
24 11th

of options in Column
ll by matching them with options
ons of at
Column I.
5. Write the correct sequence
Column ll
Column
A. Laspeyre's Method 0 21x 100

B Paasche's Method ()29a x100

P40
C. Fisher's Method
W
D. Family Budget Method (v)2o y2x100
2P9 Pq,

Codes
A B C D
ABC D
(a) (i) (i) (ii) (iv)
(b) (i) (ii) (iv) (i)
(d) (iv) (ii) (i) (i)
(c) (i) G) (iv) (ii)
Directions Read the following case study paragraph carefully and answer the questions (6-9) on

the basis of the same.

Collection of data is the first step in a statistical analysis. Data can be collected either from primane
source or secondary source. Primary data is original as it is being collected for the first time.
rimary
After collecting the data, next step is to organise the data as raw data cannot be used for further
statistical analysis. There are various methods of classification of data based upon the nature of

quantitative data.
6. Which of the following are statistical series based on general character? (1)
G) Time series i) Spatial series (ii) Condition series
Choose from the options below
(a) (i) and (i) (b) (i) and (ii) (c) G) and (ii) (d) 6), (i) and (ii)
7. Classification of data based on time period is known as..
(geographical/chronological) classification.
(1)
8. Data are grouped with reference to the attributes is referred to as . .
(qualitative/quantitative) classification. )
9. The method in which the upperlimit of a class interval is same as the lower limit of the next class
interval is known as (1)
(a) Cumulative method (b) Inclusive method
(c) Exclusive method (d) None of these

10. Economics is considered as.. . . . as well as. ** ***** (1)

11. "Statistics is a useful tool only in the hands of experts." Elaborate. (3)
12. Give the advantages of Karl Pearson's coefficient of correlation. (3)
Or What are the properties of Karl Pearson's coefficient of correlation?
13. Convert the following into a 'more-than series' (4)
5 students get less than 3 marks; 12 students get less than 6 marks;
25 students get less than 9 marks; 30 students get less than 12 marks
14. Calculate the weighted mean of the following distribution. (4)
Items (X) 24 58 28 82

Weights (W 12 8 10 4
 Sample uestion Paper 1
1th 25
15. Calculate the upper and lower
( quartiles for the
following frequency distribution.
Class Interval
(4)
Frequency (()
13-25
25-37
37-49
23
49-61

61-73
3
Total
50
Or
Following table gives the distribution of
step-deviation method, find out companies according to the size of
the mean size of the
capital of a company capital. Using
Capital Rin lakhs) Less than 5 Less than 10
Less than 15 Less than 20 Less
than 25 Less than 30
Number of Companies 20 27 29 38 48 53
16. Calculate CPI for 2011
using family budget method.
Items Price in 2000 () (6)
Price in 2011 R
Food
Weight
100 140 30
Rent 50 100 20
Clothing 75 60 20
Fuel and lighting 25 50 10
Miscellaneous 50 100 20
17. From the data given below, calculate Karl Pearson's coefficient
population and death rate by step-deviation method.
of correlation between density of
(6)
Region Area (in sq km)
Population Death
A 200
40,000 480
150 75,000 1,200
120 72.000 1,080
D 80 20,000 280
Or
Find the median and upper quartile from the following data.

Size 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50

Frequency 10 13 26 35 22 11 5

PART B
18. Utility analysis is criticised for one of its assumption. According to this, utility can be expressed in
terms of (1)
(a) cardinal number (b) ordinal number (c) Both (a) and (b) (d) None of these

19. In the process of production, fixed factors and variable factors are combined in a particular ratio,
which gives equilibrium output. This ratio is referred to as (1)
ratio (b) capital output ratio (c) ideal factor ratio d )None of these
(a) factor output
26 Allinone ECONOMICS Clase s 1th

Or Law of Variable Proportions is applicable in...

(a) short-run only (b) long-run only (c) market period only
(d) All of these
20. Identify the correct statement(s) from the given below

) With increase in level of output, ATC and AVC comes closer

(1)
(i) MCis the rate of change in TC as well as TVC
(ii) TVC varies indirectly with change in level of output
Choose from the options below
(a) (6i) and (i) (b) (6i) and (ii) (c) (Gi) and (i)
(d) 6), Gi) and
21. Read the
following statements Assertion (A) and Reason (R). Choose one of the correct
(iil)
given below altera.
Assertion (A) Extension in supply is caused by change in factors other than own (1)
price, This This leads to
movement along the supply curve.
Reason (R) Change in quantity supplied is an impact of change other
in factors leading to chin .
supply curve to the right.
Alternatives
(a) Assertion (A) is true and Reason (R) is the correct explanation of (A)
(b) Assertion (A) is true, but Reason (R) is not the correct explanation of (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both are false
22. Write the correct
pair.
(1)
Column Column I
(a) Market economy 0 Basis of demand and supply
(6) Centrally planned economy () Both 'central authority and 'market forces' play role
(c) Mixed economy (ii) Maximising social welfare
Codes
(a) (a)-i) (b) (b)-(i) (c) (c)-(ii) (d) None of these
Directions Read the following case study paragraph carefully and answer the questions (23-26) on
the basis of the same.
Ravi has fallen on hard times due to lockdown. His income per week is ? 400,
and 200 all other
spending 7 200 on food
on
goods. However, he is also receiving a social allowance in the form of 10 food
stamps per week from government.
The coupons can be exchanged for 10 worth of food, and he
Show the budget line with and without the food
only has to pay? 5 for such coupons.
stamps. He has monotonic
23. What will be the equation of
preferences.
Budget line food and non-food items (without food coupons)? (1)
(a) Price (food) + Price (non-food) = 200
(b) Price (food) + Price (non-food)= 400
(c) Price (food) + Price (non-food) < 400 (d) Price (food) + Price (non-food)> 400
24.What will be the equation of Budget line food and non-food items (with food coupons)? (1)
(a) Price (food) + Price (non-food) = 210 (b) Price (food) + Price (non-food) = 410
(c) Price (food) + Price (non-food) < 410 (d) Price (food) + Price (non-food) = 405
23. Preferences are considered as monotonic when . more units are preferred over less units
less units are preferred over more units) (

26. If Ravi is to be at equilibrium point, what should be the condition? (1)

(a) MRS =2 (b) MRS=4 (c) MUx/MU, = 2 (d) Can't be determined
2l.
Indifference curve does not touches..
Of the axis.
28.
Explain the central problem of 'For whom to produce'? 3)

Or Explain the concept of microeconomics and macroeconomics.

 ple uestion Paper 1
27
Why should MC be rising at the point of
0. Completethe following table equilibrium? (3)
Units of Labour
Average Product (AP) (4)
8
Marginal Product (MP)
Total Product (TP)
0

10
5

or Complete the following table

Output (Q)(units) Price()(P) otal Revenue (TR) (R)
Marginal Revenue (MR) (3)
36

40
31. Why a
higher indifference curve in an
satisfaction? indifference map represents a
higher level of
() Will a
profit maximising firm in
short-run if the market price competitive market produce a positive level of
a
is less than the
minimum of AC? Give an output in the
32. Explain any four factors
determining Price Elasticity of Demand (E). explanation. (2+2)

33. Define Price Elasticity of (4)

Supply (EJ. Briefly explain the methods of
various degrees of elasticity. measuring and name the
it
Or Calculate Total Cost and Average Variable Cost of a firm (6)
at each given level of output from
schedule given below its cost

Output (units) 4
6
Average Fixed Cost (AFC) ) 60 30 20 5 12
Marginal Cost (MC) () 82 30
10
28 30 35 43
34.
Explain the implications of the following features of perfect competition.
() Large number of buyers and sellers
i) Free entry or exit of firms
(6)

Answers
1. (c) Or (a) 2. (b) 3. (a) 4. (b) 5. (c) 6. (d)
7. chronological 8. qualitative 9. (c) 10. positive statement, normative statement
14. 40 15. Q, =3209,Q, = 47.70 OrR 12.22 lakh 16. 158
17. 0.82 Or M =3171. Q, =3681 18. (a) 19. (a) Or (a) 20. (a) 21. (d)
22. (a) 23. (b) 24.(b) 25. more units are preferred over less units 26. (d)
27. either 30. AP 10, 8, MP=-12,6,2; TP =8,20,30,36,40,42 Or Price = 87,5; TR = 40,42, MR = -20,-2

33. Or AVC = 32,31,30,30, 31,33; TC =92,122,150,180, 215, 258

SAMPLE QUESTION PAPER 2
A Highly Simulated Sample Question Paper for CBSE Class XI

ECONOMICS pire
the

General Instructions
All questions in both the parts A and B are compulsory. There are internal choices in questions of 1 mark
3 marks, 4 marks and 6 marks.
1 mark each.
Question nos. 1-10 and 18-27 are Objective Type Questions carrying
3 marks each.
Question nos. 11-12 and 28-29 are Short Answer Type I Questions carrying
Question nos. 13-15 and 30-32 are also Short Answer Type II Questions carrying 4 marks each.
Question nos. 16-17 and 33-34 are Long Answer Type Questions carrying 6 marks each.

Time:3 hours Max. Marks: 80

PART A
When raw data is classified on the basis oftime period, it is referred to as
(b) Spatial Classification
(1
(a) Chronological Classification
(c) Qualitative Classification (d) Quantitative Classification
Which is taken as base year for consumer price index?
(1)
(a) 2004 (b) 2016
(c) 2010 (d) 2020
Choose the incorrect statement from the given below (1)
(a) For a symmetrical distribution, mean, median and mode are equal to each other.
(b) Mid-value series need to be converted in normal frequency distribution in order to calculate median.
(c) Inclusive series need to be converted into exclusive seies in order to calculate arithmetic mean.
(d) Mode calculated from the empirical relation is diferent from value calculated by statistical calculation.

Read the following statements Assertion (A) and Reason (R). Choose one of the correct alternatives Or
given below 1 11
Assertion (A) A better way to estimate GDP accurately is to deflate input and output prices through
separate indices
Reason (R) When output prices move relatively faster than the input prices, the single defation 2
method overestimates GDP
Alternatives 13
(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

O
Sample uestion Paper 2
29
5. Write the correct sequence of options in Column II
by matching them with options of Column I.
ColumnI Column l
A In a scatter diagram, all points lie on straight line
() Zero correlation
B. In ascatter diagram, points are widely dispersed around the line () Perfect correlation
C. In a scatter diagram, points do not show any trend at all () Low degree of correlation
Codes
AB CC
(a) 0 ) ( ) ABC A A B C
(d) (0 (i) ()
Directions Analyse the following case study graphs carefully and answer the questions (6-9) on
the basis of the same.

70 ore than oga Lests

haong

60

50 20-
20 20
15, 40)
5-

30
10

20.

10 5 10 15 20 25 30 35 X 10 20 30 40 50
Marks
60 70
=35
OAccording to figure one, value of median is equal to ..... (15/40) (1)

Median can be located graphically using which

of the following? (1)
(a) Less than ogive (b) More than ogive
(c) Both less than ogive and more than ogive together (d) All of these
OWhich form ofgraphical presentation is used to locate mode? (1)
(a) Histogram (b) Bar graphs
(c) Cumulative curves (d) Arithmetic line graphs
According to figure two, the approximate value of mode is equal to . . (35/25) (1)

T Fisher's method of calculating index numbers is based on. mean. (1)

Or Index numbers measure.. changes in variables overtime.
Prepare a blank table to show distribution of population according to age, and income for a
particular year.
Or As a form of presentation of data, explain frequency polygon.
Mean marks obtained by 100 students are estimated to be 40. Later on it is found that one value was
read as 83 instead of 53. Find out the corrected mean.
3 Which average (measure of central tendency) would be suitableinthe following cases? (4)

6) Average intelligence of students in class.

(i) Average production in factory per shift.
(ii) Average size of readymade garments.
(iv) Average in case of open-ended frequency distribution.
Or What are the properties of Spearman's rank correlation?
30 Allinone ECONOMICS Class 1
11th
14 Find the value of x and y from the given information.

Series Combined
Number of Items 12 0 30

Mean(X) 10 12
19Marks obtained by 30 students in Economics are
12, 14, 19, 8, 0, 15, 23, 27, 18, 11, 5, 01, 13, 14, 29, 15, 12, 7, 22, 26, 17, 08, 20, 21, 13, 13. 03 e
28.
Prepare a frequency distribution with class interval of 5 on exclusive basis.
0Explain the characteristics of good classification.
Or
In a trip organised by a college, there were 80 people out of which there were 60 studento
number of servants (all males) was six. The number of ladies were 20% of the total and thehe
only one lady staff member. Tabulate this information. was
Calculate coefficient of correlation between age group and rate of mortality from the followina
data.
6)
Age Group 0-20 20-40 40-60 60-80 80-100
Rate of Mortality 280 540 760
350 900
Hint: Since, class interval are given for age, so mid value should be used for the calculation of r.

PART B
Te A Price =7 10, Demand for Good A is 80 units and Supply is 40 units, it is a situation of
(1)
(a) Ceiling demand (b) Excess demand (c) Excess supply (d) Equilibrium
19. Economics is the study of
()
(a) the choices we make because of scarcity of resources.
(b) the allocation of resources only.
(c) the distribution of surplus goods to those in need.
(d) ways to reduce wants to eliminate the problem of scarcity
20. Which of the following is/are true about perfect
competition? (1)
(a) Infinitely large number of buyers and sellers (b) Perfect substitute goods
c) No price control by buyers or sellers (d) All of these
Read the
following statements Assertion (A) and Reason (R). Choose one of the correct alternatives
given below
Assertion (A) Controlled price mechanism
system prevails in socialistic and communist countries
where the government has exclusive
rights production, distribution and consumption.
on
Reason (R) The central authority has to decide
upon the various commodities which the economy
should produce with the available resources when market mechanism fails to give desirable result.
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
22. Write the correct (1)
pair
ColumnI
Column
(a) Increase in demand with no
corresponding change in supply 0 Equilibrium price will fall
(b) Decrease in demand with supply remaining unchanged (i) Equilibrium price will rise
(c) Perfectly elastic demand and supply increases (0) No change in equilibrium price
Codes
(a) (a)-i) (b) (b)-i) (c) (c)-(ii) (d) None of these
Sample Question Paper 2 31
pirections Read the following case study paragraph carefully and answer the questions (23-260)
on the basis of the same.
Farmers in our country are mostly small and marginal. They produce for self-consumption and hardly
have any surplus crop to sell in market. These farmers produce with the help of their family members.
Also due to limited land holding at times, there are more labour working compared with what is
actually required, this leads to disguised unemployment. Use of primitive tools and techniques
further reduces the ability of these families to increase production.
23. In case of disguised unemployment, marginal product of labour is equal to (1)
(a) zero (b) positive (c) negative (d) Either (a) or (c)
24. In case of land, the law of returns to factor' is applicable in . Short-run/medium run) (1)
25. Inthe above situation, (1)
productivity was low due to ..snas

(a) fixity of land (b) use of primitive tools and techniques

(c) excessive use of variable factor (d) All of these
0 A rational producer should opt to produce in...increasing returns to factor/diminishing
returns to factor) stage. (1)
21 . . products leads to uniform price in the market in perfect competition. (1)
Or If there is shortage of certain goods, the government introduces. for distribution of
commodity to consumers.
28. Differentiate between individual demand schedule and market demand schedule. (8)
Or How does the budget line change, if the consumer's income increases from 8,000 to 10,000 per
month but the price of the goods remain unchanged?
29. Write three characteristics of normative statements. 3)
30. What are the effects of change in the
price of a substitute good on the demand for a
commodity(4)
Explain it with the help of a diagram.
Or What is the likely impact of fall in price of one good on indifference curve, if it is assumed that
consumer only consumes tw0 goods?
31. i) Explain, how input prices are a determinant of supply of a good by a firm.
i) How does change in price of a substitute good affect the demand of the given good? (2+2)
32. Calculate Total Variable Cost and Total Cost from the
following cost schedule of a firm whose Fixed(4)
Costs areR 10.

Output (units)
Marginal Cost (MC) () 54
o.
Explain the conditions of a producer's equilibrium in terms of Marginal Cost and Marginal
Revenue. Use diagram. (6)
Or Define supply and market supply. What is the effect on the supply of goods when government
imposes a tax on the production of goods? Explain.
34, 6) A consumer buys 80 units ofa good at a price of R 5 per unit. Suppose Price Elasticity of Demand
is (2.At what price will he buy 64 units?
(i) Price elasticity of demand of a good is(-)0.75. Calculate the percentage fall in its price that will
result in 15% rise in demand. (6)

Answers
1. (a) 2. (b) 3. (c) 4. (a) 5. (b) 6. 15 7. (d)
8. (a) 9. 35 10. geometric Or relative 12. 39.70 14. x=8y =10 17. 0.95
18. (a) 19. (d) 20. (b) 21. (a) 22. (c) 23. (d)
24. short-run 25. (d) 26. diminishing returns to factor 27. Homogenous Or rationing
32. TVC=611.15, 21; TC = 16, 21, 25,31 34. () 5.50 (i) 20%
SAMPLE QUESTION PAPER 3
for CBSE Class XI
A
Highly Simulated Sample Question Paper

ECONOMICS
General Instructions
There are internal choices in questions of 1 mark,
Al questions in both the parts A and B are compulsory.
3 marks, 4 marks and 6 marks.
1 mark each.
Question nos. 1-10 and 18-27 are Objective Type Questions carrying
carrying 3 marks each.
Question nos. 11-12 and 28-29 are Short Answer Type Questions
I
II Questions carrying 4 marks each.
Question nos. 13-15 and 30-32 are also Short Answer Type
Questions carrying ó marks each.
Question nos. 16-17 and 33-34 are Long Answer Type

Time:3 hours Max. Marks:80

PART A
1. Statistical calculations classified data are based on
(1)
(a) the actual values of observations (b) the upper class limits
(c) the lower class limits (d) the class mid-points
Or Objects are classified as living and non-living. This is an example of
a) geographical classification b) chronological classification
(c) qualitative classification (d) quantitative classification
2. Which of the following is true about central tendency? ()
(a) Mode =2 Median -Mean (b) Mode = 3 Median - Mean

(c) Mode=3 Median -2 Mean (d) Mode =2 Median -3 Mean

3.- Identify the correct statement from the given below
(1)
(a) If all the items of a series increase by 5, median will also increase by 5.
(b) Arithmetic mean cannot be calculated for open ended series.
(c) Lower quartile represents highest value of lowest 25% items of the series.
(d) There can be more than one median in a statistical distribution.
4. Read the following statements Assertion (A) and Reason (R). Choose one of the corect alternatives
given below (1)
Assertion (A) Arithmetic mean is a positional average, which can be calculated using graphical
presentation methods.
Reason (R) Histograms and cumulative graphs are used to locate positional averages
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
 w o n PAapers
33
padl
the
comect

(1)
,he
Coumn Column
Mean 0 tis based on all the values
Medkan 0 t can be ascertained by inspection
Mode () tis not affected by extreme values

C n d e s

a l(al-09 (b)b)-i) (c) (c)-(ii) (d) None of these

p i e x t o nA
s
s
Analyse the following case study graphs carefully and answer the questions (6-9) on
ne

softhesanme

() (2) 3) (4)

(5) 7 (8)
X and Y?
Which of the above figure shows no correlation between
(b) (1) and (7) (c) (2), (3) and (5) (d) (2), (7) and (8)
(a) (1) and (2)
correlation is referred to as. (1)
,The above method of identifying
coefficient of correlation? (1)
&What is the range of
(b) 1 to infinity
(a) 0 to 1 (d)-1to 1
infinity
c) Negative to positive infinity
correlation is (1)
9. Multiple correlation is studied between three or more variables.
(a) when the
between four variables.
(b) when the correlation is only studied
between two variables.
(c) when the correlation is only studied variables.
between three
(d) when the correlation is only studied
10. Fisher's index number is known a s . . (1)
involved in the construction of index number on
industrial production. (3)
11. Explain the various steps
correlation? (3)
12. What do you understand by spurious or non-sense
the following values of r.
Or Draw three hypothetical scatter diagrams showing
i) r= +1 ii) r= 0
)r=-1
to each other. Explain the given
statement.
(4)
13. Classification' and Tabulation' are complementary data?
Or What are the precautions that must be kept in
mind while using secondary
arithmetic mean is 45.6, then find out missing
if the
14, In the following frequency distribution, (4)
frequency 50-60 60-70 70-80
Class Interval 10-20 20-30
30-40 40-50
3 9
6
Frequency
 34 Allinone ECONOMICS Class
11th
Drawa scatter diagram and indicate the nature of correlation.
20 25 30
10 15
2.5 7.5 10 12.5 15
D n g out the major differences between census method and sampling method.
Or
Distinguish between primary data and secondary data. 6)
17. Compute Paasche's and Laspeyre's index number from the following data.
Base Year Current Year 6)
Commodity
Quantity Price Quantity Price
A 40 3
35
B
15 20
C
20 15
30 25

18. The
PART B
sufficient condition of roducer's equilibrium under both
perfect and imperfect c
19.
(a) MR = MC
(b) MR> MC (c) MC> MR
competition is(1)
Which of the (a) None of these
following are an example of derived
(a) Car and Petrol
Or (b) Tea and Coffee demand
When demand for a (c) Building and Brick (d) None of these (1)
(a) Joint demand good depends upon the demand for the
(b) Composite demand
other, it is known as
20.
Which of the (c) Derived demand (d) None of these
following
(a) All factors are
are true about
market period?
fixed in market
(b) All factors are period. (1)
(c) Some factors variable in market period.
are fixed and
(d) None of the some are variable in
above market period.
21.
Read the
following statements Assertion (A) and
given below Reason (R). Choose one of
Assertion (A) Two the correct
different levels of indifference curves
alternatives
cannot intersect each
Reason (R) satisfactions. other as different IC
1)
Indifference curve for represents
Alternatives substitute goods are
downward sloping
(a) Both
Assertion (A) and Reason straight line.
(b) Both
Assertion (A) (R) are true and
Reason
(c) Assertion (A) is and Reason (R) are true, but Reason (R) is the correct
(d) Assertion (A) is true, but Reason (R) is false (R) is not the correctexplanation of Assertion (A)
L.
Write the correct
false, but Reason (R) is
true
explanation of Assertion (A)
sequence of options in
Column Column II by matching them with options of Column
A. Normal goods Column I I.
() Its demand
BInferior goods (i)
has an inverse
Its demand is relation with income of
C. Giffen goods not affected the consumer.
i) Its demand is by change in price.
D. Necessities
(v)
inversely related with its
Its demand is price.
Codes directly related with its
A BC D
price.
(a) (G) (i) (ii)
(c) (ii) ) (iv) A B C D
(iv) (i) (b) i) (ii)
(d) (ii) (iv) (iv) (i)
G) (i)
 Ruestion Paper3

35
sirPctionse a d the
Read the following case study paragraph carefully and answer the questions (23-26)
b a s i s
of the same.
the
no
close substitute and moreover, a household has to share a negligible part of his entire
c l o s e

as refore, even in spite of increase in price of salt, its demand will not be affected.
a s

oall
n d g e tT h e

demand for a particular brand of

toothpaste is comparatively more elastic as there are many
Howeve
weothpaste available in the market, so the consumers can switch over to any other brandin
in tthe price of a particular brand of
in
s

of hike
toothpaste.
Theolasticity of demand of salt is . . (elastic/inelastic)
(1)
makes demand for salt inelastic. (Necessity/No substitute)
(1)
demand for Toothpaste is elastic in nature?
Why (1)
not a necessity of life. (b) It has a competitive market.
ia) It is
has a preference for it.
ic) Consumer (d) All of the above
uhich of the following is not a determinant of Elasticity of Demand?
W (1)
of substitutes.
la) Availability (b) Nature of the good.
icl Number buyers in the market.
of (d) Expenditure on a commodity.
In Economic terms, average revenue is equalto. (marginal revenue/ price) (1)
Differentiate between increase in demand and increase in quantity demanded (3)
How is
economicS a positive science? (3)
0.
Explain the major differences between the two branches ofeconomics.
State the law of demand and the assumptions of law of demand. (4)
30.
Or Discuss in brief the various kinds of demand.
Draw Average Revenue (AR) and Marginal Revenue (MR) curves in a single diagram of a firm
which can sell more units of a good only by lowering the price of that good. Explain. 4)
) Briefly explain any two
exceptions of law of demand.
32
) Briefly explain percentage change method of price elasticity of supply. (2+2)
33 Establish the relationship between Marginal Cost (MC) and Average Variable Cost (AVC). (6)

the following statements are true or false. Give reasons.

or State whether
Variable Cost (AVC).
(i) As output increases, Average Cost (AC) tends to be closer to Average
(i) Average Cost (AC) is more consistent than Marginal Cost (MC).
maximum.
When Marginal Revenue (MR) is zero, Average Revenue becomes
(ii)
34. Explain the following three features of perfect competition 6

() Very large number of buyers and sellers (i) Homogeneous product

(ii) Free entry and exit of firms

Answers
4. (d) 5. (a) 6. (b)
1. (d) Or (c) 2. () 3. (c)
9. (a) 10. ideal index number
7. scatter diagram method 8. (d)
71.58 18. () 19. () Or ()
14. 16 17. Paasche's index =
74.70, Laspeyre's index =

23. inelastic 24. No substitute 25. (6)

20. (a) 21. (b) 22. ()
26. (c) 27. price