ECONOMICS 3 HOURS

MODEL PAPER
80

Class: XI

GENERAL INSTRUCTIONS
• This question paper contains two sections:
Section A-Statistics
Section B-Microeconomics
• All questions are compulsory.
• Marks for questions are indicated against each question.
• This paper contains 20 multiple choice questions of 1 mark each.
• This paper contains 4 short answer questions of 3 marks each to be answered in 60 to 80
words.
• This paper contains 6 short answer questions of 4 marks each to be answered in 80 to 100
words.
• This paper contains 4 long answer questions of 6 marks each to be answered in 100 to 150
words.
• Answers should be brief and to the point and the above-mentioned word limits should be
adhered to as far as possible.

SECTION: A
1 Which of the following is a method of secondary data collection? 1
(a) Direct personal investigation
(b) Direct oral investigation
(c) Collection of information through questionnaire
(d) None of these.

2 Which of the following is a source of secondary data? 1

(a) Government publication
(b) Private publication
(c) Report published by the State Bank of India
(d) All of these
3 The characteristic of a fact that can be measured in the form of numbers is called: 1
(a) Frequency (b) Variable

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 (c) Attribute (d) None of these

4 The difference between upper limit and lower limit of a class is known as 1
(a) Range (b) Magnitude of a class interval
(c) Frequency (d) Class limits

5 Formula for finding arithmetic mean is : 1

X
(a) X = X (b) X =
N
N
(c) X = X − N (d) X =
X

6 Coefficient of correlation lies always between: 1

(a) 0 and +1 (b) – 1 and 0
(c) – 1 and +1 (d) None of these

7 Assertion (A): The first step while constructing index numbers is to decide the cause of 1
construction
Reason (R) : Every index is designed with a specific purpose.
Choose the correct 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 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 Identify the correct sequence of alternatives given in Column II by matching them with 1
respective items in Column I:
COLUMN I COLUMN II
A. Adjustment factor for any class i. Used to find Mode
B. Frequency polygon ii. Used to find Median
C. Histogram iii. Formed by joining mid-points of
D. More than ogive histogram
iv. Unequal class intervals
a) A(iv), B(iii), C(i), D(ii) (b) A(iii), B(i), C(iv), D(ii)
(c) A(ii), B(iv), C(i), D(iii) (d) A(iii), B(iv), C(i), D(iii)

9 Diagrammatic representation of data is done by 1

(a) Picture (b) Chart
(c) Diagram (d) All of these

10 27. Table is the consequence of 1

(a) Classification (b) Organisation
(c) Presentation (d) Tabulation

11 Is arithmetic mean an ideal measure of central tendency? Give reasons to support your 1+2
answer.

12 Compute coefficient of correlation from the following data

X Series Y Series
Mean 10 8

2
 Sum of squares of Deviation from Mean 32 72

Sum of products of deviation of X and Y series from their respective mean is 43. Number
of pairs of observations is 8.
OR
3
Critically analyse the concept of scatter diagram in Statistics.

13 What is meant by questionnaire? What are the qualities of a good questionnaire? 1+3

14 Calculate the coefficient of correlation using Karl Pearson’s formula of the series given
below.

X 6 9 12 15 18 21 24
Y 8 14 16 18 20 28 36 4

OR
State the properties of correlation coefficient.

15 Read the following case study carefully and answer the questions (i)-(ii) on the basis of the 2+2
same:
“Index numbers are widely used in official statistics to convey information about the
relative size of a variable (price, quantity, etc.) between different points in time or between
different geographical locations. Consumer price indices and purchasing power parities are
examples of the same. A large number of index number formulae are available to the
official statistician who wishes to select the most appropriate one for each application. The
statistician can also choose whether or not to use a chained index.”
(i) State the significance of the Consumer Price Index.
(ii) State some difficulties involved in construction of Consumer Price Index.

16 The following table gives the marks obtained by some students. Calculate the median & 6
modal marks obtained by the students:

Marks 0-5 5 - 10 10 - 15 15 - 20 20 - 25 25 - 30 30 - 35 35 - 40 40 - 45
Number
of 6 12 17 30 10 10 8 5 2
Students

3
17 What is WPI? What are the components under WPI? Explain the importance of WPI.
OR 6
Find the Consumer Price Index from the following data using:
(i) Aggregative Expenditure Method, and
(ii) Family Budget Method.
Is there any difference between the two results?
Commodity Quantity
Price in 2004 Price in 2018
Consumed in the Unit
(₹) (₹)
year 2004

Rice 6 Quintal 100 120

Wheat 8 Quintal 80 90
Bajra 1 Quintal 70 70
Arhar 2 Quintal 120 115
Desi Ghee 20 kg 12 15
Sugar 1 Quintal 160 170

SECTION: B
18 Which of the following is an example of complementary goods ? 1
(a) Tea and coffee (b) Coke and Pepsi
(c) Rice and Wheat (d) None of these

19 1

On the basis of the above diagram answer the following question: Identify the elasticity of
demand.
(a) Zero (b) One (c) Infinity (d) None of these

20 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): Contraction in supply leads to a downward movement along the same supply
curve.
Reason (R): Downward movement along the same supply curve occurs due to an increase
in price of the commodity, other factors remaining constant.
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 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.

21 A straight-line supply curve originates from the origin at 75o. What is the elasticity of 1

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 supply?
(a) Elastic (b) Unitary elastic
(c) Inelastic (d) Neither (a) nor (b)

22 _________ is the extension of “Law of Diminishing Return”. 1

(a) Law of Variable Proportions (b) Law of Demand
(c) Law of Equi-marginal utility (d) Law of Diminishing Marginal Utility

23 Identify the correct sequence of alternatives given in Column II by matching them with 1
respective items in Column I:
COLUMN I COLUMN II
A. MC i. AFC × Q
B. TFC ii. U-shaped due to the Law of
C. AVC curve Variable Proportions
D. TVC iii. ∑MC
iv. TCn – TCn-1

(a) A(iv), B(i), C(ii), D(iii) (b) A (ii), B(iv), C(iii), D(i)
(c) A(iv), B(iii), C(i), D(ii) (d) A (iii), B(i), C(ii), D(iv)

24 What happens to TR when MR is positive? 1

(a) TR increases (b) TR decreases
(c) TR is maximum (d) TR remains same

25 A firm is a price taker under. 1

(a) Perfect Competition (b) Monopoly
(c) Monopolistic Competition (d) None of these

26 Minimum Price Floor leads to a situation of : 1

(a) Excess Demand (b) Excess Supply
(c) Either (a) or (b) (d) Neither (a) nor (b)

27 The market supply of a commodity is affected by 1

(a) State of Technology (b) Number of firms
(c) Government policy (d) All of the above

28 Calculate TR, AR and MR from the following date:

Units sold 10 9 8 7 6 5 4
Price 1 2 3 4 5 6 7
OR 3
Explain the relation between TR, MR & AR when price(P) is constant.

29 “A firm under perfect competition is a price taker and the industry is a price maker”. Do 3
you agree with the given statement? Support your answer with valid explanation.

30 Price elasticity of demand for a product is ‘unity’. A household buys 25 units of this
product at the price of Rs 5 per unit. If the price of product rises by Rs 1, how much
quantity of the product will the household buy?
4
OR
Read the following Case Study carefully and answer the questions on the basis of the

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 same:
The price elasticity of demand is how economists measure the responsiveness of consumers
to changes in prices for a commodity. In other words, as price increases (decreases), the
quantity demanded by consumers will decrease (increase). The relative proportions of the
changes in price and the respective quantities demanded are the responses of consumers
and are referred to as the price elasticity of demand. Business decisions concerning prices
are not always a simple matter of adding some margin to the cost of production of the
commodity (cost-plus pricing). Suppliers will wish to obtain the most revenue the market
will bear from the sales of their products-in other words, maximize their profits. It is,
therefore, necessary for business to have some idea of what the market will bear, and that is
where the price elasticity of demand enters the picture in business decision-making.
a) How is Price elasticity of demand important in everyday decision making?
b) What will be elasticity of demand for life saving drugs? Show it with diagram.

31 Discuss the relationship between AVC and MC. 4

32 How will a rational producer reach his or her equilibrium level of production using MR- 4
MC approach when price is constant?

33 Distinguish between: (a) Individual demand and market demand (b) ‘Change in demand’ 3+3
and ‘change in quantity demanded’

34 Define Price Ceiling. What is the common purpose of fixation of ceiling price by the
government? Explain the likely consequences of this nature of intervention by the
government.
OR 6
Explain the effect of the following on market equilibrium:
a) Deterioration of technology of production of good X, ceteris paribus.
b) The demand of good X decreases and the supply of good X increases simultaneously.
The decrease in demand is more than the increase in supply.

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