CLASS 11TH ECONOMICS (PRESENT TOPIC – INTRODUCTION AND PRODUCTION POSSIBILITY

CURVE)

-COMPETENCY BASED QUESTIONS

- CASE STUDY QUESTIONS

-SOURCE BASED QUESTIONS

1. COMPETENCY BASED QUESTIONS

Q1. “The rupee fell to an all time low on 9th July,2022 and is currently at 79.06 to the
American dollar for the first time in history .”

Identify the statement given above as positive or normative economics with reason.

Q2. “There is an economy XYZ that produces two goods, war equipment and electronics.
since resources are limited, therefore both the goods can not be produced in abundance.
Now a country WRT invaded over country XYZ and consequently country XYZ has to
produce more of war equipment.”

Create a schedule taking hypothetical units for the country XYZ ‘s production possibility
curve. Also show the calculation of marginal opportunity cost.

2. CASE STUDY BASED QUESTIONS

Q1. “The democratic republic of Congo is one of the most resource rich countries in Africa.
The DRC is an important supplier of natural resources to Germany. despite all this, DRC is
one of the poorest in the world. In 2015, its gross domestic product (GDP) amounted to US
$35.24 billion—the German 2015 GDP, in comparison, amounted to US $ 3363.45 billion.
The DRC belongs to the group of low human development (position 176 of 188) on the
United Nations Human Development Index (HDI) 2014, and an estimated 70 per cent of its
population lived below the national poverty line in 2014.”

Depict the situation of democratic republic of Congo and Germany using production
possibility curve. Also explain the diagram with reasons.

Q2. Read the given case study and answer the questions given.

Family Background - Kavita Prashant Patil while completing her school education learned
stitching. After marriage also she continued her work of stitching. But it was limited upto
home only. She wanted to develop herself with the skill in the field. She always wanted to
have her own shop where she could design clothes for other.

Contact with MITCON (in collaboration with MSMEs) -- One day she came across with an
advertisement about free training programme on fashion designing. She had contact with
the programme coordinator at MITCON’s office at Nagpur. She discussed on various topics
related to fashion designing. After discussions she found it convenient to attend the training
programme. She filled up the application and after undergoing the interview she was
selected for the training programme.

About Training Program -- During the training programme various inputs regarding
designing new patterns, cutting, stitching skill, embroidery, lace work were imparted by the
faculty. More emphasis was given on practical training through which participants could get
confidence to work independently. She successfully completed the training programme.

Present Status -- Initially she started with a small unit with two employees. Within in two
months she expanded her business and started a boutique where she had employed more
ladies.

a) How can the central problem of how to produce by India solved? refer to the case
study .
b) MSMEs are labour intensive in nature . comment.

3. SOURCE BASED QUESTIONS

Q1. On the basis of the given news , identify inflation as an economic variable of micro or
macro economics . also give reasons.

From Hindustan times

“According to the official data released by Indian statistical organisation, the annual
inflation rate in India increased to 6.95 % in march 2022.”

Q2. “ India attracted total foreign direct investment iof 83.51 billion dollars in the financial
year 2021-22 up by 1.955 from last year .

How would inflow of foreign exchange effect production possibility curve of India ? use
diagram and explain.