KENDRIYA VIDYALAYA SANGATHAN

(AGRA REGION)
SESSION ENDING EXAMINATION 2018-19
CLASS – XI
SUBJECT - ECONOMICS
(SOLVED PAPER)
*Note : This paper is solely for reference purpose only. The format has now been modified by CBSE for March 2020 examination.

Time: 3 Hrs. M.M.: 80

General Instructions:
(i) All questions in both the sections are compulsory.
(ii) Marks for questions are indicated against each question.
(iii) Question No. 1-4 and 13-16 are very short answer questions carrying 1 mark each. They are required to be answered in one
sentence each.
(iv) Question No. 5-6 and 17-18 are short-answer questions carrying 3 marks each. Answers to them should normally not
exceed 60 words each.
(v) Questions No. 7-9 and 19-21 are also short-answer questions carrying 4 marks each. Answers to them should normally not
exceed 70 words each.
(vi) Questions No. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answers to them should normally not
exceed 100 words each.
(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

Part A
1.
What is the behavior of MC, as output increases ? 1
OR
State the reason why Total Variable Cost (TVC) curve and Total Cost (TC) curve are parallel to each other ?
2.
When 5 units of a good are sold, total revenue is ` 100. When 6 units are sold, marginal revenue is ` 8. At what
price are 6 units sold ? (Choose the correct alternative)
(a) ` 28 per unit (b) ` 20 per unit
(c) ` 18 per unit (d) ` 12 per unit 1
3.
The Problem of Choice arises due to the fact that : 1
(a) Resources are scare (b) Resources are in abundance
(c) Have alternative use (d) Both (a) and (c)
4.
Which of the following is a variable cost ? 1
(a) Salary of permanent staff (b) License fees
(c) Rent of premises (d) Wages
OR
Define Economic cost.
5.
Explain the central problem “What to Produce.” 3
OR
Define production possibility curve. State its two features.
6.
If both goods are substitute goods, price of X good rises what happens on demand of Y goods. Show with the
help of diagram. 3
7.
Define price elasticity of demand. A consumer buys 40 units of a good at a price of ` 3 per unit. When price rises
to ` 4 per unit he buys 30 units. Calculate price elasticity of demand. 4
OR
Why does demand curve slope downwards ? Explain it using utility analysis. 4
8.
Calculate Average Variable Cost (AVC) and Marginal Cost (MC) at each given level of output from the following
table :

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2  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

Output 0 1 2 3 4
Total Cost 40 60 78 97 124

4
9.
Explain the implication of being large number of buyers and sellers in perfectly competitive market. 4
OR

What is monopolistic competition ? Can a seller in such a market influence the price ? Explain. 4
10.
Explain consumer equilibrium with the help of indifference curve approach, use diagram. 6
11.
Explain the likely behavior of TP and MP when for the increasing production only one input is increased, all
other inputs are kept constant. 6
12.
Market of a good is in equilibrium if the demand for the good “Increases”. Explain the chain of effects of this
change. Use diagram. 6
OR

Explain price ceilling and price floor with the help of diagram.

Part B
13.
Which average is affected most by the presence of extreme items ? 1
(a) Median (b) Airthmetic Mean
(c) Mode (d) All the above
14.
Mention any two importance of statistics in economics. 1
OR

Define statistics in plural sense. 1
15.
What is meant by direct personal investigation methods of data calculation ? 1
16.
How histogram is different from bar diagram ? 1
17.
Describe any three qualities of a good questionnaire ? 3
OR
Explain briefly any three main characteristics of a good statistical table. 3
18.
Write a short note on sampling errors and non-sampling errors. 3
19.
Calculate Mode for the following data :
C.I. 0-10 10-20 20-30 30-40 40-50
Frequency 5 8 15 10 4

4
OR
Define variable. Differentiate between discrete variable & continuous variable. 4
20.
Calculate rank correlation between the marks of two subjects :
Maths 60 48 49 50 55
Economics 85 60 55 65 75

4
21.
Make histogram and frequency polygon from the following data :
Class 0-20 20-40 40-60 60-80 80-100
Frequency 10 4 6 14 16

4
22.
Calculate coefficient of correlation by Karl Pearson method :
X 90 88 78 78 74 70 65 62
Y 18 25 30 30 30 42 38 47

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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    3

23. (A) What is meant by consumer price index ? Explain any two uses of it.
(B) Construct Laspeyre’s and Paasche’s price index for 2014 with 2004 as base year.
2004 2014
Items
Price Quantity Price Quantity
A 2 6 4 8
B 0.4 40 1 36
C 0.5 24 0.25 32

6
24.
Find out the coefficient of standard deviation using step-deviation method :

Class-Interval 0-2 2-4 4-6 6-8 8-10 10-12

Frequency 2 4 6 4 2 6
6



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4  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

SOLUTIONS
Part A
1. MC declines as output increases in the beginning and after a certain level of output it increases.
Or
TC and TVC curves are parallel to each other because the vertical gap between them represents TFC which
remains constant at all levels of output.
2. (c) ` 18 per unit.
3. (d) both (a) and (c)
4. (d) wages
Or
In economics, the Total Cost (TC) is the total economic cost of production. It consists of variable costs and fixed
costs. Total cost is the total opportunity cost of each factor of production as part of its fixed or variable costs.
5. What to produce : This problem involves selection of goods and services to be produced and the quantity to be
produced of each selected commodity. Every economy has limited resources and thus, cannot produce all the
goods. More of one good or service usually means less of others.
For example, production of more sugar is possible only by reducing the production of other goods. Production
of more war goods is possible only by reducing the production of civil goods. So, on the basis of the importance
of various goods, an economy has to decide which goods should be produced and in what quantities. This is a
problem of allocation of resources among different goods.
Or
It is a curve which shows various production possibilities with the help of given limited resources and technology.
It is also known as production possibility frontier and transformation curve. It is a tool which can help to solve
the central economic problems.
The two basic characteristics or features of PPF are:
(a) PPF slopes downwards : PPF shows all the maximum possible combination of two goods, which can be
produced with the available resources and technology. In such a case, more of one good can be produced
only by taking resources away from the production of another good. As there exists an inverse relationship
between changes in quantity of one commodity and change in quantity of the other commodity, PPF slopes
downwards from left to right.
(b) PPF is Concave Shaped: PPF is concave shaped because of increasing marginal opportunity costs, i.e. more
and more units of one commodity are sacrificed to gain an additional unit of another commodity.
6. Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want,
like coffee (X) and tea (Y). Demand for a given commodity varies directly with the price of a substitute good. For
example, if price of a substitute good (say, coffee) increases, then demand for given commodity (say, tea) will rise
as tea will become relatively cheaper in comparison to coffee. Let us clear this with the help of Fig.:
Substitute Goods
Y
D
Price of Coffee (in `)

P1 Demand of lea rises from

OQ to OQ1 due to increase
P in price of substitute, i.e.,
Coffee from OP to OP1
D
X
O Q Q1
Demand of Tax (in units)
As seen in the given diagram, price of coffee (substitute good) is shown on the Y-axis and demand for tea (given
commodity) on the X-axis. When price of coffee rises from OP to OP1, demand for tea also rises from OQ to OQ1.
7.
Given,
Q = 40, P = ` 3
Q1 = 30, P1 = ` 4

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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    5

PEd = ?
∆Q P
Ed = ( − )
×
∆P Q

DQ = Q1 – Q = 30 – 40 = – 10

DP = P1 – P = ` 4 – ` 3 = ` 1

Putting the values in the formula :
−10 3
Ed = ( − )
×
1 40
−30
= ( − )

40

Ed = 0.75
Or

The law of diminishing marginal utility states that as the consumer purchases more and more units of a
commodity, he gets less and less utility from the successive units of the expenditure. At the same time, as the
consumer purchases more and more units of one commodity, then lesser and lesser amount of money is left with
him to buy other goods and services.

A rational consumer, before, while purchasing a commodity compares the price of the commodity which he has
to pay with the utility of a commodity he receives from it. So long as the marginal utility of a commodity is higher
than its price (MUx>Px), the consumer would demand more and more units of it till its marginal utility is equal
to its price MUx = Px or the equilibrium condition is established.

To put it differently, as the consumer consumes more and more units of a commodity, its marginal utility goes
on diminishing. So it is only at a diminishing price at which the consumer would like to demand more and more
units of a commodity.

Y Y
MUX Px

MU1 P1

MU2 P2

MU3 P3

X
O X1 X2 X3 X O X1 X2 X3 X
Quantity MUX Quantity
(a) (b)

In fig. (a) MUx is negatively slopped. It shows that as the consumer acquires larger quantities of good X, its
marginal utility diminishes. Consequently at diminishing price, the quantity demanded of the good X increases
as is shown in fig. (b).

At X1, quantity the marginal utility of a good is MU1. This is equal to P1 by definition. The consumer here demands
OX1 quantity of the commodity at P1 price. In the same way X2 quantity of the good is equal to P2. Here at P2 price,
the consumer will buy OX2 quantity of commodity. At X3 quantity the marginal utility is MU3, which is equal to
P3. At P3, the consumer will buy OX3 quantity and so on.

As the purchase of the units of commodity X are increased, its marginal utility diminishes. So at diminishing
price, the quantity demanded of good X increases as is evident from fig. (b). The rational supports the notion
of downward slopping demand curve that when price falls, other things remaining the same, the quantity
demanded of a good increases and vice versa.
8.

Output Total Cost FC VC AVC MC

0 40 40 0 0 0
1 60 40 20 20 20
2 78 40 38 19 18

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6  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

3 97 40 57 19 19
4 124 40 84 21 27

9. A perfectly competitive market is dominated by a very large number of buyers and sellers of a commodity, which
means that there is no such buyer or seller in the market whose purchase or sale is so large as to impact the total
sale or purchase in the market. Each buyer/seller has only a fractional share in the market demand/market supply.
Since, price is determined by the market forces of demand and supply, no individual buyer or seller has any
control on it. Each buyer/seller has to accept the price as it is in the market.
Or
Monopolistic competition refers to that form of market in which there are a large number of sellers, selling
differentiated products but closely related goods.A firm under monopolistic competition is neither a price-taker
nor a price-maker. However, by producing a unique product or establishing a particular reputation, each firm has
partial control over the price. The extent of power to control price depends upon how strongly the buyers are
attached to his brand.
10.
Consumer equilibrium refers to a situation, in which a consumer derives maximum satisfaction, with no intention
to change it and subject to given prices and his given income. The point of maximum satisfaction is achieved by
studying indifference map and budget line together.
On an indifference map, higher indifference curve represents a higher level of satisfaction than any lower
indifference curve. So, a consumer always tries to remain at the highest possible indifference curve, subject to his
budget constraint.
Conditions of Consumer’s Equilibrium:
The consumer’s equilibrium under the indifference curve theory must meet the following two conditions:
(i) MRSXY = Ratio of prices or PX/PY
Let the two goods be X and Y. The first condition for consumer’s equilibrium is that
MRSXY = PX/PY
(a) If MRSXY > PX/PY, it means that the consumer is willing to pay more for X than the price prevailing in the
market. As a result, the consumer buys more of X. As a result, MRS falls till it becomes equal to the ratio of
prices and the equilibrium is established.
(b) If MRSXY < PX/PY, it means that the consumer is willing to pay less for X than the price prevailing in the
market. It induces the consumer to buys less of X and more of Y. As a result, MRS rises till it becomes equal
to the ratio of prices and the equilibrium is established.
(ii) MRS continuously falls : The second condition for consumer’s equilibrium is that MRS must be diminishing
at the point of equilibrium, i.e. the indifference curve must be convex to the origin at the point of equilibrium.
Unless MRS continuously falls, the equilibrium cannot be established.
Thus, both the conditions need to be fulfilled for a consumer to be in equilibrium.
Let us now understand this with the help of a diagram :
Consumer's Equilibrium by
Y Indifference Curve Approach

Consumer is at equilibrium at
B F Point E, when budget line AB
is just tangent to 'IC2'
Commodity X

H
N E

IC3
IC2
G IC1
X
O M A
Commodity X

In Fig., IC1, IC2 and IC3 are the three indifference curves and AB is the budget line. With the constraint of budget
line, the highest indifference curve, which a consumer can reach, is IC2. The budget line is tangent to indifference
curve IC2 at point ‘E’. This is the point of consumer equilibrium, where the consumer purchases OM quantity of
commodity ‘X’ and ON quantity of commodity ‘Y’.

All other points on the budget line to the left or right of point ‘E’ will lie on lower indifference curves, and thus
indicate a lower level of satisfaction. As budget line can be tangent to one and only one indifference curve,
consumer maximizes his satisfaction at point E, when both the conditions of consumer’s equilibrium are satisfied:
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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    7

(i) MRS = Ratio of prices or PX/PY : At tangency point E, the absolute value of the slope of the indifference
curve (MRS between X and Y) and that of the budget line (price ratio) are same. Equilibrium cannot be
established at any other point as MRSXY > PX/PY at all points to the left of point E and MRSXY < PX/PY at all
points to the right of point E. So, equilibrium is established at point E, when MRSXY = PX/PY.
(ii) MRS continuously falls : The second condition is also satisfied at point E as MRS is diminishing at point E,
i.e. IC2 is convex to the origin at point E.
11.
In the short run, when one input is variable and all other inputs are fixed, the firm’s production function exhibits
the law of variable proportions. This law shows the nature of rate of change in output due to a change in only one
variable factor of production.Law of Variable Proportions states that as we increase quantity of only one input
keeping other inputs fixed, total product (TP) initially increases at an increasing rate, then at a decreasing rate
and finally at a negative rate.
Let us now understand the law with the help of an example:

Suppose, a farmer has 1 acre of land (fixed factor) on which he wants to increase the production of wheat with
the help of labour (variable factor). When he employed more and more units of labour, initially output increased
at an increasing rate, then at a decreasing rate and finally, at a negative rate.

This behaviour of output is shown in Table
Fixed Factor Variable Factor TP MP Phase
(Land in acres) (Labour) (Units) (Units)
1 1 10 10 1st (Increasing
1 2 30 20 returns to a factor)
1 3 45 15 2nd (Diminishing
1 4 52 7 returns to a factor)
1 5 52 0
1 6 48 –4 3rd (Negative
returns to a factor)

Factor ratio keeps on changing : It must be noted that production is carried out under conditions of ‘variable
proportions’, i.e. proportion between fixed and variable factor changes with every additional variable factor. In
Table, the ratio between land and labour changes from 1:1 to 1:2, then to 1:3 and so on, with addition of more and
more units of labour.
Y
Law of Variable
Total Production (in units)

Proportions
60 M (TP is Maximum)
50 Point of
TP
40 Inflexion
30 Q
20
10
X
O 1 2 3 4 5 6
Y
Units of Variable factor
Marginal Production (in units)

Phase 1 Phase 2 Phase 3

60
50
40
MP is
30 Maximum
20
10 S (MP = 0)
X
O 1 2 3 4 5 6
MP
Units of Variable factor

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8  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

(i) Phase 1 (Between O to Q) TP increases at an increasing rate and MP also increases.

(ii) Phase 2 (Between Q to M) TP increases at decreasing rate and MP falls. This phase ends when MP becomes
zero and TP reaches its maximum point.
(iii) Phase 3 (Beyond point M) TP starts decreasing and MP not only falls, but also becomes negative.
(iv) Point of Inflexion (Point Q) Point ‘Q’ is known as point of inflexion as curvature of TP curve changes at this
point. Till point Q, TP is concave shaped and beyond point Q, TP becomes convex shaped.

As seen in Table and Fig., when farmer increases the labour on the same piece of land, then, initially TP rises at
an increasing rate, then at a decreasing rate and finally it falls.
The resulting relation between input and output is discussed in three phases:
Phase 1 : Increasing Returns to a Factor : In the first phase, every additional variable factor adds more and more
to the total output. It means TP increases at an increasing rate and MP of each variable factor rises. As seen in
given schedule and diagram, one labour produces 10 units, while two labours produce 30 units. It implies, TP
increases at increasing rate (till point ‘Q’) and MP rises till it reaches its maximum point ‘P’, which marks the end
of first phase.
Phase 2 : Diminishing Returns to a Factor : In the second phase, every additional variable factor adds lesser and
lesser amount of output. It means TP increases at a diminishing rate and MP falls with increase in variable factor.
That is why this phase is known as diminishing returns to a factor. The second phase ends at point ‘S’, when MP
is zero and TP is maximum (point ‘M’) at 52 units. 2nd phase is very crucial as a rational producer will always aim
to produce in this phase because TP is maximum and MP of each variable factor is positive.
Phase 3 : Negative Returns to a Factor : In the third phase (starting from 6 units of labour), the employment of
additional variable factor causes TP to decline. MP now becomes negative. Therefore, this phase is known as
negative returns to a factor. In Fig, the third phase starts after point ‘S’ on MP curve and point ‘M’ on TP curve.
MP of each variable factor is negative in the 3rd phase. So, no firm would deliberately choose to operate in this
phase.
12.
Effect of an increase in demand for a commodity on equilibrium price and equilibrium quantity is discussed with
reference to Fig. given below :
D2
Y
D1 S
K
P2
E
Price

P1 F

S D2
D1
X
O Q1 Q2
Quantity

In Fig. D1D1 is the initial demand curve, crossing supply curve SS at point E, the point of initial equilibrium. Owing
to increase in demand, demand curve shifts to the right, from D1D1 to D2D2. And at the existing price (OP1),
quantity rises from point E to point F. As an immediate impact of increase in demand, there is excess demand in
the market, equal to EF (at the existing price). Due to the pressure of demand, price of the commodity tends to
be higher than the equilibrium price. Owing to rising price, quantity demanded tends to contract. Contraction of
demand occurs from point F towards point K. However, at rising price, quantity supplied tends to extend. The
extension of supply occurs from point E towards point K. The process of extension of supply and contraction
of demand (triggered by the rising price) continues till excess demand is fully tackled and the market clears
itself once again. K is the point of new equilibrium, where quantity supplied is equal to quantity demanded.
Corresponding to the new equilibrium, quantity demanded/supplied is equal to OQ, and equilibrium price is
OP2.

Thus, the net effect of increase in demand is :
(i) increase in equilibrium price from OP1 to OP2, and (ii) increase in equilibrium quantity from OQ1 to OQ2.
Or
Price Ceiling or Maximum Price : It refers to fixing of the maximum price of a commodity at a level lower
than the equilibrium price. Government imposes price ceiling in case of essential commodities (wheat, sugar,
kerosene, etc.) when the equilibrium price determined by free market forces of demand and supply is high.
Ceiling means maximum limit. Price ceiling means maximum price of a commodity that the sellers can charge
from the buyers. Often the government fixes this price much below the equilibrium market price of a commodity
so that it becomes within the reach of the poorer sections of the society.

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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    9

Equilibrium Price = OP
Equilibrium Quantity = OL
Ceiling Price = OP 1
Y
Excess Demand = ab = L1, L2

MS
P2

Price
P1 a b
Ceiling price

MD
X
O L1 L L2
Quantity
When government fixes price of OP1, demand for bajra extends from OL to OL2. On the other hand, supply
contracts from OL to OL1. Consequently, a gap emerges between market demand and market supply. It is a
situation when MD > MS. It is called a situation of excess demand. In the diagram, excess demand = ab = L1L2
(OL2 – OL1).
Excess demand for bajra would have its own implications. Significantly, people fail to buy bajra to the extent they
wish to buy. Accordingly, a situation of partial hunger may continue to exist.
Price Floor : It means the minimum price fixed by the government for a commodity in the market. It is done
with a view to stabilising income of the producers. It also helps stabilising the supply of the commodities in
the market. Floor Price is often higher than the equilibrium price of the commodity. This is expected to cause
excess supply in the market. In the figures excess supply is equal to ab. In India, support price may be cited as an
example of floor price. Support price is the assured minimum price offered by the government to the farmers for
the purchase of their output. It is offered to the farmers in order to regulate their income.
Equilibrium Price = OP
Equilibrium Quantity = OL
Floor Price = OP1
Excess Supply = ab = L1L2
Y

MSw
P1 a b
Floor Price
Q
Price P

MSw
X
O L1 L L2
Quantity

Part B
13. (b) Arithmetic mean.
14. Importance of Statistics in Economics (any two) :
(a) Statistics helps in making economic laws like law of demand and concept of elasticity.
(b) It helps in understanding and solving economic problem.
(c) It helps in studying market structure.
(d) It helps in finding mathematical relations between variables.
Or
In plural sense, it means a systematic collection of numerical facts. In the words of A.L. Bowley, “Statistics are
numerical statements of facts in any department of enquiry placed in relation to each other.”
15. This method is also known as the interview method. It is the method by which data are personally collected by
the investigator from the informants. In other words, there is face to face contact with the person from whom the
information is to be obtained.He has to be on the spot to conduct the inquiry and has to meet the people who are
in possession of the required data.

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10  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

16. Histogram refers to a graphical representation, which displays data by way of bars to show the frequency of
numerical data whereas, bar graph is a pictorial representation of data that uses bars to compare different
categories of data. In histogram, bars touch each other, hence there are no spaces between bars whereas in bar
diagram, bars do not touch each other, hence there are spaces between bars.
17. Any three :
(i) Brief and Limited Questionnaire : The number of questions in a schedule should be brief and limited as
possible. Only relevant questions to the problem under investigation should be added.
(ii) Simple and Clear : The questions should be simple, clear and precise. Its language should be very simple
so that the informants may easily understand.
(iii) Unambiguous Questions : All unambiguous questions should be avoided. Complicated and long-worded
questions irritate the respondents which results in careless replies.
(iv) No Personal Questions : No personal question should be asked from, respondents. Such questions should
be avoided.
(v) Use of Proper Words : Questions should be framed with right words. This ensures the validity.
(vi) Avoidance of Calculations : Questions should not be based on calculations. Only those questions should
be asked which the respondents may reply immediately. Moreover, questions should avoid memories.
Or
(i) Simple Presentation : Tabular presentation is the most simplest form of data presentation. Data are easily
understood, if tables are systematically prepared.
(ii) Helps in comparison : The tabular presentation facilitates comparison of data by presenting the data
properly in rows and columns.
(iii) Special Emphasis : Tabulation highlights important characteristics of data. Accordingly, it becomes easy to
draw inferences from it.
18. Sampling Errors : The purpose of the sample is to take estimate of the population. Sampling error refers to the
differences between the sample estimated and the actual value of a characteristic of the population (that may
be the average income, etc.). It is the error that occurs when you make an observation from the sample taken
from the population. Thus, the difference between the actual value of a parameter of the population (which is
not known) and its estimate (from the sample) is the sampling error. It is possible to reduce the magnitude of
sampling error by taking a larger sample.
Non-Sampling Errors : Non-sampling errors are more serious than sampling errors because a sampling error
can be minimised by taking a larger sample. It is difficult to minimise non-sampling error, even by taking a large
sample. Even a Census can contain non-sampling errors. Some of the non-sampling errors are:
(a) Non-Response Errors : Non-response occurs if an interviewer is unable to contact a person listed in the
sample or a person from the sample refuses to respond. In this case, the sample observation may not be
representative.
(b) Sampling Bias : Sampling bias occurs when the sampling plan is such that some members of the target
population could not possibly be included in the sample.
19. Class Intervel Frequency
0 − 10 5
10 − 20 8( f0 )
(l ) 20 − 30 15( A )
30 − 40 10 ( f2 )
40 − 50 4

By inspection, it is class model 20–30, because frequency of this class is maximum i.e., 15
To calculate mode, the following formula is used,
f1 − f0
Z = li + ×i
2 f1 − f0 − f2
15 − 8

Z = 20 + × 10
2 × 15 − 8 − 10
7
Z = 20 + × 10
12
70

Z = 20 +
12

Z = 20 + 5.833

Z = 25.833
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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    11

Or

A variable is any characteristic, number, or quantity that can be measured or counted. A variable may also be
called a data item. Age, business income and expenses, country of birth, capital expenditure, and class grades are
examples of variables.
Differences between Discrete and Continuous Variable :

Basis for Comparison Discrete Variable Continuous Variable

Meaning Discrete variable refers to the variable Continuous variable refers to a variable
that assumes a finite number of isolated which assumes infinite number of different
values values.
Range of specified Complete Incomplete
number
Values Values are obtained by counting. Values are obtained by measuring.
Classification Non-overlapping Overlapping
Assumes Distinct or separate values. Any value between the two values.
Represented by Isolated points Connected points

20.

Maths Economics R1 R2 D = (R1 – R2) D2

60 85 2 2 0 0
40 60 5 4 1 1
49 55 4 5 –1 1
50 65 3 3 0 0
55 75 2 2 0 0

N=5 SD2 = 0

6 ΣD 2

rK = 1 −
N3 − N
6 (2 )
= 1 −
53 − N
12

= 1 −
120

= 1 – 0.1

rK = 0.9

There is a very high degree of positive correlation.
21.
y Histogram and Frequency polygon
18
16
Histogram
14
Frequency

10
8
6 Frequency polygon
4
2
0 x
20 40 60 80 100

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12  Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI

22.
X x=X − X x2 Y y=Y − Y y2 xy

65 –3 9 67 –2 4 6
66 –2 4 68 –1 1 2
67 –1 1 66 –3 9 3
68 0 0 69 0 0 0
69 +1 1 72 +3 9 3
70 +2 4 72 +3 9 6
71 +3 9 69 0 0 0
SX = 476 Sx2 = 28 SY = 483 Sy2 = 32 Sxy = 20

SX 476
X = N = 7 = 68

SY 483

Y = N = = 69
7
Σxy

Coefficient of correlation (r) =
Σx 2 × y 2
20
=

28 × 32
20
=

896
20

=
29.93

r = 0.668
OR

x R1 y R2 D = (R1 – R2) D2
90 1 18 8 –7 49
88 2 25 7 –5 25
78 3.5 30 5 1.5 2.25
78 3.5 30 5 1.5 2.25
74 5 30 5 0 0
70 6 42 2 4 16
65 7 33 3 4 16
62 8 47 1 7 49
N=8 SD2=159.5


6  ΣD 2 +

1
12
(  1 3
m3 − m  +
 12 )
3 −3 ( )

rK = 1 −
N 3 −N


6  159.5 +

1 3
12
 1 3
2 −2  +
 13
3 −3 ( ) ( )
= 1 −

83 − 8
6 (159.5 + 0.5 + 2 )

= 1 −
504
6 × 162 972
= 1 −
= 1− = 1 − 1.92
504 504

rK = – 0.92

There is a very high degree of negative correlation.

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Oswaal CBSE Solved Paper - 2019, ECONOMICS, Class-XI    13

23. (A) Consumer Price Index (CPI), also known as the cost of living index, measures the average change in retail
prices.
Uses of CPI :
(a) Consumer index number (CPI) or cost of living index numbers are helpful in wage negotiation, formulation
of income policy, price policy, rent control, taxation and general economic policy formulation.
(b) CPI are used in calculating the purchasing power of money and real wage.
(B)
2004 2014
Items p0 q 0 p0 q 1 p1 q 0 p1 q 1
Price Quantity Price Quantity
(p0) (p0) (p1) (q1)
A 2 6 4 8 12 16 24 32
B 0.4 40 1 36 16 14.4 40 36
C 0.5 24 0.25 32 12 16 6 8
Sp0q0 = 40 Sp0q1 = 46.4 Sp1q0 = 70 Sp1q1 = 76

Laspeyre's Method : Paasche's Method :
Σp1q0 Σp1q1

P01 = × 100 p01 = × 100
Σp 0 q 0 Σp0 q1

70 76

= × 100 = 175 = × 100
40 46.4
= 175 = 163.79
24.

m−A
Class Interval frequency mid point d=m–A d' = fd' d' fd'2
C 2
(X) (f) (m) A=7
C=2
0–2 2 1 –6 –3 –6 9 18
2–4 4 3 –4 –2 –8 4 16
4–6 6 5 –2 –1 –6 1 6
6–8 4 7(A) 0 0 0 0 0
8 – 10 2 9 +2 +1 2 1 2
10 – 12 6 11 +4 +2 12 4 24
SF = 24 Sfd' = – 6 Sfd'2 = 66

2
Σfd '2  Σfd '' 
− ×C
Standard deviation (s) =
N  N 

66  −6  2
= −  × 2
24  24 
= 2.75 − 0.0625 × 2
= 2.6875 × 2
= 1.639 × 2 = 3.278


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