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Class 11 - Economics
Sample Paper - 09 (2023-24)

Maximum Marks: 80
Time Allowed: : 3 hours

General Instructions:

1. This question paper contains two sections:

Section A – Micro Economics
Section B – Statistics
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Section A
1. Assertion (A): Insurance companies do not have to decide what proportion of their capital can be invested and what
proportion is kept ready for payment of matured policies.
Reason (R): Insurance companies function on the basis of estimations of mortality rates that is life expectations and on
the basis of calculating insurance companies.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
2. P01 is the index for time
a) 0 on 0
b) 0 on 1
c) 1 on 0
d) I on 1
3. If two variables are highly correlated, what do you know?
a) That they always go together
b) That changes in one variable are accompanied by predictable changes in the other
c) That there are no other variables responsible for the relationship
d) That high values on one variable lead to high values on the other variable
4. An enquiry into the budgets of the middle class families in a certain city gave the following information: What is the cost
of living index during the year 2004 as compared with 1995?
Expenses Food Fuel Clothing Rent Misc.
Price (Rs.)2004 1500 250 750 300 400

Price (Rs.)1995 1400 200 500 200 250

a) 134.5
b) 131.48
c) 125.49
d) 132.5

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5. Cost of living index numbers are also used to find real wage by the process of
a) Base shifting
b) Deflating of index number
c) Splicing of index number
d) None of the given
6. ____ is the benchmark index for the Indian stock market.
a) Price index
b) Agricultural index
c) Sensex
d) None of these
7. 30% rises in prices may due to reduction in supply, shortage of power, rise in wages etc. This shows which
characteristics of statistics
a) Numerically expressed
b) Aggregate of facts
c) Affected by multiplicity of causes
d) Placed in relation to each other
8. Which of the following is a one-dimensional diagram?
a) Cylinder
b) Bar diagram
c) Histogram
d) Pie diagram
9. A composite price index where the prices of the items in the composite are weighted by their relative importance is
known as the
a) weighted aggregate price index
b) CPI
c) price relative
d) none of these
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10. The data consist of scores on three different scales of Political attitudes.
Scale-A Scale-B Scale-C

3 5 4
2 6 6
1 5 8

5 2 2
7 8 1

For the correlation between the Scale-Aand the Scale-C, N =

a) 5
b) 7
c) 6
d) 8
11. Give reason as to why weighted index number is generally preferred to an unweighted index number?

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12. Find unknown frequency in the table given below.
X Frequency (f)
5 5

10 7
15 ?
20 10

25 8
30 6
Σf = 50

OR

Calculate mode from the following data.

Marks 0-10 10-20 20-30 30-40 40-50 50-60
Number of Students 4 10 20 35 15 6
13. From the following data, prepare simple frequency distribution on the basis of equal class interval.
Marks Number of Students
Less than 5 7
Less than 10 20

5-15 38
15 and above 55
20-25 20

25 and above 5
30 above 1
14. What is a false base line? How is it different from a kinked line?

OR

Distinguish between classification and tabulation of data.

15. "In certain conditions sampling becomes a necessity”. Explain this statement.
16. Calculate Karl Pearson's coefficient of correlation between the following two series by short-cut method.
X 24 27 28 28 29 30 32 33 35 35 40

Y 18 20 22 25 22 28 28 30 27 30 22
17. The following table shows the distribution of 105 families according to their expenditure per week. Number of families
corresponding to the expenditure groups Rs.10-20 and t 30-40 are missing from the table. The median and mode for the
distribution are 25 and 24, respectively. Calculate the missing frequencies.
Expenditure (in Rs.) 0-10 10-20 20-30 30-40 40-50

Number of Families 14 ? 27 ? 15

OR

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Calculate Q1 and Q3 from the following data.

Marks 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40

Number of Students 4 6 8 12 12 8 6 4
Section B
18. The supply of durable goods is usually:
a) perfectly elastic
b) more elastic
c) less elastic
d) perfectly inelastic
19. Any allocation of resources result in
a) Production of goods and services
b) Wastage of resources
c) Inefficient utilization
d) Consumption of goods
20. A firm earns normal profit before break even in the short run.The statement is
a) None of these
b) True
c) Can’t say
d) False.
21. Can MR be negative or zero?
a) May not be
b) No
c) Yes
d) May be
22. Changes in production quantity effect:
a) None of these
b) Marginal cost
c) Only Variable Cost
d) Only Fixed Cost
23. Assertion (A): An individual is influenced by emerging trends and fashions.
Reason (R): An individual simply wants to be trendy accordingly, one prefers to buy more of a commodity.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
24. A price at which a consumer is willing to buy and a seller is willing to sell the commodity is called:
a) Floor price b) Minimum Price
c) Maximum Price d) Equilibrium price
25. When Total Revenue is maximum, marginal Revenue is:
a) Maximum b) Minimum
c) Constant d) Zero
26. Average cost is derived by
a) Dividing Total Cost by units of output
b) Subtracting Total Cost by units of output
c) Adding Total Cost by units of output

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d) Multiplying Total Cost by units of output
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27. If the demand curve of a firm is a horizontal straight line:
a) all firms will sell equal amount of a commodity
b) firms can differentiate their product
c) a firm can sell only a specified amount at the existing price
d) a firm can sell any amount at the existing price
28. What are the three central problems of an economy?

OR

Give the properties of production possibility curve.

29. What is the minimum price ceiling? Explain its implications.
30. Explain the difference between ‘change in demand’ and ‘change in quantity demanded’.
31. Differentiate between Short Period and Long period.

OR

Giving reasons, Identify the equilibrium level of output and find profit at this output using Marginal Cost and Marginal
Revenue approach from the following table:
Output (units) 1 2 3 4 5

Total Revenue (Rs.) 10 20 30 40 50

Total Cost (Rs.) 12 22 30 40 52

32. A consumer consumes only two goods X and Y, both priced at Rs 2 per unit. If the consumer chooses a combination of
the two goods with Marginal Rate of Substitution equal to 2, is the consumer in equilibrium? Why or why not? What
will a rational consumer do in this situation? Explain.
33. Complete the following table:
Marginal Product
Units of Labour Average Product (Units)
(Units)
1 8 -

2 10 -

3 - 10
4 9

5 - 4

6 7 -
34. Answer the following questions
1. The Price Elastictiy of Demand for a good is (-) 0.4. If its price increases by 5% by what percentage will its demand
fall? Calculate.
2. The demand rises by 20% as a result of fall in its price. Its Price Elasticity of Demand is (-) 0.8. Calculate the
percentage fall in price.

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Class 11 - Economics
Sample Paper - 09 (2023-24)

Solution

Section A
1. (d) A is false but R is true.
Explanation: Insurance companies have to decide what proportion of their capital can be invested and what proportion
is kept ready for payment of matured policies because insurance companies function on the basis of estimations of
mortality rates that is life expectations and on the basis of calculating insurance companies.
2. (c) 1 on 0
Explanation: P01 is the index for time “1” on time “0” as base
3. (b) That changes in one variable are accompanied by predictable changes in the other
Explanation: High degree of correlation implies that there is a strong relationship between the two variables and that the
changes in one variable cause predictable changes in the other variable.
4. (c) 125.49
sum of p1 q0
Explanation: cost of living index =
3200
× 100 = × 100 = 125.49
sum of p0 q0 2550

5. (b) Deflating of index number

Explanation: Consumer price index also helps in measuring the change in purchasing power of the money. It also helps
in the determination of the real wages of the workers during deflation.
6. (c) Sensex
Explanation: Sensex is the short form of Bombay Stock Exchange Sensitive Index with 1978–79 as base. The value of
the sensex is with reference to this period. It is the benchmark index for the Indian stock market. It consists of 30 stocks
which represent 13 sectors of the economy and the companies listed are leaders in their respective industries.
7. (c) Affected by multiplicity of causes
Explanation: A variable price is affected by a number of causes. Here , effect is one whereas causes are many.
8. (b) Bar diagram
Explanation: A diagram in which the size of only one dimension i.e. length is fixed in proportion to the value of the
data is called one-dimensional diagram. Such diagrams are also popularly called bar diagrams.
9. (a) weighted aggregate price index
Explanation: Since, all items in data do not have equal importance to consumers, we give different weightages to
different items to reflect their relative importance in the group. If i buy 1 kg of wheat per week and 7 kgs of rice per
week. It implies that to me, weightage lies in rice more than wheat.
10. (a) 5
Explanation: N means the number of items in the series.
11. A weighted index is preferred to unweighted because:
(a) It gives different weights to different items as per their importance.
(b) Its results are more reliable.
(c) It is more accurate and useful.
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12. To find unknown frequency subtract the sum of known frequencies from the sum of total frequencies. Here it is given
that the sum of frequencies is 50.
Σf = 50

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and the known frequencies are 5,7,10,8 and 6.
∵ Sum of known frequency= 5+7+10+8+6=36

∴Unknown Frequency = Total Frequency-Sum of Known Frequencies

=50 - 36=14.
Therefore, the missing frequency is 14.

OR

By observation, the modal class is 30-40, since it has maximum frequency 35.
Now, l1=30, f1=35, f2=15, f0=20, and c=10
where l is the lower limit of the modal class f is the frequency of the modal class f is the frequency of the class
1 1 0

preceding the modal class, f is the frequency of the class succeeding the modal class and i is the class interval of the
2

modal class.
∴ Mode,
f −f
1 0
( Mo ) = l1 + × c
2f −f −f
1 0 2

35−20
= 30 + × 10
2×35−20−15
15×10
= 30 +
35
150
= 30 + = 30 + 4.3
35

∴ Mode (M0)=34.3 marks

13. The simple frequency distribution table on the basis of equal class interval is shown below
Marks Number of Students

0-5 7
5-10 13 [20-7]
10-15 25 [38-13]

15-20 30 [55-25]
20-25 20
25-30 4 [5-1]

30-35 1
Total 100

We are given that frequency for all values less than 10 is 20. Thus, when we form a class interval
5 - 10, it contains all values greater than 5 but less than 10, so we subtract 7 from 20 to get the frequency of the class 5-
10.Because 7 is the frequency of values greater than zero but less than 5. Likewise, we proceed.
14. Usually, when we draw any graph, the scale on which the graph is measured starts from zero on the y-axis. However,
under the situations when the data to be plotted on graph starts from a value which is far above zero, results in the
problem of shortage of space on graph. To overcome this problem of shortage of space, a false base line is plotted. False
base line is a line which is drawn to grasp the attention of the reader on the fluctuations which usually remains
unnoticed. A kinked line is used on x axis for the same purpose for which false base line is used for y axis. It means
when variable starts from a higher value, we use kinked line and when frequency starts with a first higher number
followed by smaller gaps, we use false base line.

OR

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The primary difference between classification and tabulation is that the process of classifying data int groups is known as
classification of data, whereas tabulation is the act of presenting data in tabular form, for better interpretation.
Differences between classification and tabulation of data are:
Basis Classification Tabulation

Classification of data means that the data is arranged in Tabulation of data means that the classified data is
Meaning different classes according to the presence or absence arranged in rows and columns, under suitable
of certain attributes. heads and sub-heads,
Data can be tabulated only after it has been
Sequence Classification precedes the process of tabulation.
classified.
Tabulation is a process which facilitates the
Method Classification is a method which facilitates statistical
presentation of data by preparing
or Process analysis.
table.
Tool It is a tool which helps to organise data. It is a tool which helps in the presentation of data.

Bifurcates
Categories and sub-categories. Headings and sub-headings.
data into
Purpose To analyse data. To present data.
15. Sample means a small population of items selected from a universe for statistical studies. In certain specific conditions
use of census as a method is impossible or highly inappropriate. For example, if one wants to check the quality of rice or
wheat, it is impossible to check each and every grain. Also, if one goes to purchase sweets, then the shopkeeper will give
only a piece to taste. A drop of blood is tested for the disease like malaria or typhoid. In these cases, the use of census
method will be impossible. Sampling method in these cases becomes a necessity.

16.
X dx(X - A), A = 32 dx2 Y dy(Y - A), A = 25 dy2 dxdy

24 -8 64 18 -7 49 56
27 -5 25 20 -5 25 25
28 -4 16 22 -3 9 12

28 -4 16 25 0 0 0
28 -4 16 22 -3 9 12
29 -3 9 22 -3 9 9

30 -2 4 28 3 9 -6
32 0 0 28 3 9 0
33 1 1 30 5 25 5

35 3 9 27 2 4 6
40 8 64 22 -3 9 -24
2 2
Σdx = −18 Σd x = 224 Σdy = −11 Σd y = 157 Σdxdy = 95

nΣdxdy−(Σdx)(Σdy)
r=
2 2
√Σdx2 ⋅n−(Σdx) 2
×√Σdy ⋅n−(Σdy)

11×95−(−18)(−11)
=
2 2
√224×11−(−18) ×√157×11−(−11)

1045−198
= 0.456 (approx)
847 847 847
= = = =
√2464−324 ×√1727−121 √2140 ×√1606 46.26×40.07 1853.64

Therefore, Karl Pearson's coefficient of correlation between X and Y is 0.456

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Interpretation: It shows medium degree of positive correlation between X and Y series.
17. Let the frequencies be f1 for class interval of Rs.10-20 and f2 for class interval of Rs.30-40.
The cumulative frequency for the given data is calculated as follows:
Expenditure (X) Number of Families (n) Cumulative Frequency (f)
0-10 14 14

10-20 f1 14 + f1

20-30 27 41 + f1

30-40 f2 41 + f1 +f2

40-50 15 56 + f1 + f2

n=56 + f1 + f2

Calculation of missing frequencies

Median =25 (given) Mode =24 (given)

Since,Median =25,the median lies in the class interval 20-30. Mode =24, the mode lies in the class interval 20-
Then, 30.
l1=20, f=27, cf=14 + f1 and c=10 Then, l1=20, f1=27, f0=f1, f2=f2 and h=10
n
−cf
f −f
2 1 0
∴ Median (M ) = l1 + × c ∴ Mode( Mo ) = l1 + × c
f 2f −f −f
1 0 2
56+f +f
1 2 27−f
1
−(14+f )
2
1 ⇒ 24 = 20 + × 10
⇒ 25 = 20 + × 10 54−f1 −f2
27
27−f1
27(25−20) 56+f +f
1 2 ⇒ 4 = × 10
⇒ = − (14 + f1 ) 54−f −f
1 2
10 2

⇒
2×27×5
= 56 + f1 + f2 − 28 − 2f1 ⇒ 4(54-f1-f2)=10(27-f1)
10

⇒ 27=28 + f2 - f1 ⇒ 216-4f1+4f2=270-10f1
⇒ 6f1-4f2=54
⇒ f1 - f2 =1 ..... [eq. i ]

⇒ 3f1-2f2=27 ..... [eq. ii]

Now, we have two equations

f1-f2=1 ...............(i)
3f1 -2f2 =27 ........................(i)
On multiplyng Eq. (i) by 2 and subtracting Eq. from it, we get

− f1 = −25 ⇒ f1 = 25

On putting the value of f1 in Eq.(i), we get 25 − f 2 = 1 ⇒ f2 = 25 − 1 ⇒ f2 = 24

Hence, the number of families in the groups Rs. (10-20) and Rs. (30-40) are 25 and 24, respectively.

OR

Marks (X) Number of Students (f) Cumulative Frequency (cf)

0-5 4 4

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5-10 6 10
10-15 8 18

15-20 12 30
20-25 12 42
25-30 8 50

30-35 6 56
35-40 4 60
n=60
In case of frequency distribution first quartile and third quartile can be calculated by using the formula given below:
Q1 Q3

n
Q1 = Size of ( ) th item
4 n
Q3 = Size of 3 ( ) th item
4

60
= Size of ( ) th item 60
4 = Size of 3 ( ) th item
4

=Size of 15th items It lies in 10-15 group.

=Size of 45th item It lies in 25-30 group.
n
3( )−cf
n 4

4
−cf ∴ Q3 = l1 + × c
f
∴ Q1 = l1 + × c
f 60
3( )−42
60
4
−10
4 = 25 + × 5
= 10 + × 5 8
8
3×5
5×5 = 25 +
= 10 + = 10 + 3.125 8
8 15
= 25 + = 25 + 1.875
⇒ Q1= 13.125 8

⇒ Q3=26.875

Section B
18. (b) more elastic
Explanation: Durable goods are relatively more elastic in supply than perishable goods because durable goods have a
longer shelf time than the perishable goods.
19. (a) Production of goods and services
Explanation: Resource allocation arises as an issue because the resources of a society are in limited supply, whereas
human wants are usually unlimited, and because any given resource can have many alternative uses.
20. (d) False.
Explanation: The firm will get normal profits at break even point when TC = TR. It is also called zero economic profits.
21. (c) Yes
Explanation: MR will become negative when TR starts falling.
22. (c) Only Variable Cost
Explanation: Changes in production quantity affect only variable cost.
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23. (b) Both A and R are true but R is not the correct explanation of A.
Explanation: An individual is influenced by emerging trends and fashions. An individual simply wants to be trendy
accordingly, one prefers to buy more of a commodity.

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24. (d) Equilibrium price
Explanation: The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is
determined by the intersection of the demand and supply curves.
25. (d) Zero
Explanation: When TR is maximum, MR is 0. MR is an additional change in TR when one more unit of output is sold.
26. (a) Dividing Total Cost by units of output
Explanation: It refers to the per unit cost of production.
AC=TC÷Q
27. (d) a firm can sell any amount at the existing price
Explanation: Firm's demand curve is a horizontal straight line under perfect competition. Demand curve of the firm is
perfectly elastic. It means that the firm can sell any amount of the commodity at the prevailing price. The horizontal
straight line shows that the firm is to accept the price as determined by the forces of market supply and market demand;
it can sell whatever amount it wishes to sell at this price.
28. The central problems of a production deal with the production of necessary commodities using scarce means of
resources. It includes problems that deal with the production of goods in an economy where it is decided that:
What to produce? Consumer goods or capital goods?
How to produce? Using labour intensive technique or capital intensive technique
For whom to produce? Rich people or poor people?

OR

There are two properties of a production possibility curve.

1. Downward sloping: It is because as more quantity of one good is produced some quantity of the other good must be
sacrificed as rerources are limited. More of both goods can't be produced.
2. Concave to the origin: It is because the marginal rate of transformation increases as more of one good is produced.
29. A price ceiling occurs when the government limits how much producers can charge for a good. It is called a ceiling
because you cannot charge more than the amount specified by the government. This is set by the government to protect
the interest of the seller.
Price floor is set above the equilibrium price which creates ‘excess supply’ in the market as shown in the diagram given
below.

In the above diagram, OP is equilibrium price because at this price demand is equal to supply. Further OPf is the price
floor which creates excess supply equal to ab.
Implications of minimum price ceiling:
i. It assures the farmers that whatever they produce will get sold in the market.
ii. It secures higher income for producers and labours (i.e. labour laws are an example of price floor).
iii. The end result is high prices for consumers.

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30. Differences between change in demand and change in quantity demanded are
Basis Change in Demand Change in quantity Demanded
It is caused by a change in prices of
It is caused by an increase or decrease in the
substitutes,change in prices of complementary
Reason price of the given commodity, keeping other
goods,change in income, etc. other than the own
factors constant.
price of the commodity.

It leads to a movement along the same demand

It leads to a shift in the demand curve either
Impact on curve either upwards(known as contraction in
rightwards (known as increase in demand)or
demand curve demand)or downwards(known as expansion in
leftwards(known as decrease in demand).
demand)

Diagrammatically, this is shown as a forward or

backward shift in demand curve.
Diagrammatically, this is shown as a downward
or an upward movement on the same demand
curve.

Diagrammatic
Presentation

Short period
31. Basis Long Period

A short period refers to the period of time in

which a firm cannot change some of its factors
like plant, machinery, building, etc. due to
insufficiency of time but can change any
variable factor like labour, raw material, etc.
A long period, on the other hand, is a time
period during which a firm can change all
Meaning
factors of production including machines,
building, organization etc.

Output can be increased by making changes in

Output can only be increased by changing the
Output the quantity of both fixed as well as the
quantity of variable factors.
variable factor inputs.

Factors of production here can be grouped in

two categories: In the long period, the distinction between the
Classification
Fixed Factors fixed and the variable factors disappear.
Variable Factors

Demand here plays a dominant role in the Effects In the long period, supply can be adjusted to

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determination of price of a commodity any change in demand. So, demand and supply
play equal role in price determination.

OR

Output TR (Rs.) TC (Rs.) Profit (TR -TC) MR (Rs.) MC (Rs.)

1 10 12 -2 - -

2 20 22 -2 10 10

3 30 30 0 10 8
4 40 40 0 10 10

5 50 52 -2 10 12
Equilibrium refers to a state of rest when no change is required. A firm (producer) is said to be in equilibrium when it
has no inclination to expand or to contract its output. This state either reflects maximum profits or minimum losses.
There are two methods for determination of Producer’s Equilibrium:
1. Total Revenue and Total Cost Approach (TR-TC Approach)
2. Marginal Revenue and Marginal Cost Approach (MR-MC Approach)
According to MR - MC approach, the producer’s equilibrium refers to the stage of that output level at which:
i. MC = MR: As long as MC is less than MR, it is profitable for the producer to go on producing more because it adds
to its profits. He stops producing more only when MC becomes equal to MR.
ii. MC is greater than MR after MC = output level. When MC is greater than MR after equilibrium, it means producing
more will lead to a decline in profits.

As per the given schedule, the producer will be at equilibrium when he is producing 4 units of output because both the
conditions of producers equilibrium are being fulfilled at this point i.e.
i. MC = MR [MC = MR = 10 ].
ii. MC becomes greater than MR after the MC = MR output level [MC = 9, whereas MR = 7 at the 5th unit of output].
iii. Producer won’t be at equilibrium at the 2nd unit of output though MC = MR because MC is not greater than MR
after that level of output.
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32. According to the ordinal utility approach, the consumer will be in equilibrium when following conditions are fulfilled :
i. Slope of Indifference (MRS) = Slope of Budget Line (Px/Py) i. e. Indifference curve should be tangent to the budget
line.
ii. Indifference curve is convex to the origin i.e. MRS should be diminishing.
According to the question,
MRS = 2 and Px = Py = 2 i. e. Px/Py=2/2=1∴ MRS ≠ Px /Py [2 ≠ 1]

iii. In this case, MRS is greater than Px /Py . Therefore consumer is not in equilibrium as the conditions of consumer
equilibrium is not satisfied. In the above case MRS > Px/Py and a rational consumer will start increasing the
consumption of good X and reduces the consumption of good Y . As a result, MRS will fall. This process will
continue till the time, MRS becomes equal to PX/PY

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As we can see from the above diagram that to the left of equilibrium point e, MRS > PX/PY, hence consumption of
good X will rise and that of good Y will fall till the consumer reaches at point e.
33. The missing values as per the question can be found as follows:
AP MP TP
L TP

L
(T Pn − T Pn−1 ) Product

1 8 8 8

2 10 20 - 8 = 12 20
3 =10 10 8 + 12 + 10 = 30
30

4 9 36 - 30 = 6 36

5 8 4 40
6 7 42 - 40 = 2 42
34. Answer the following questions
Percentage Change in Quantity Demanded
1. E d =
Percentage Change in Price

Percentage change in quanuty demanded

(−)0.4 =
5

∴ Percentage change in demand =−0.4 × 5 = −2

∴ Demand falls by 2%.

Percentage change in quantity demanded
2. E d =
Percentage change in price

20%
(−)0.8 =
percentage change in price

Percentage change in price =

20
= 25%
(−)0.8

i.e. Price falls by 25%.

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