XI Pre-Selection 2022

ECONOMICS

Full Marks : 100

The figures in the margin indicate full marks for the questions

General Instructions :

i. Attempt Part— A ( Objective Questions) serially.

ii. Attempt all parts of a question at one place.
iii. Write all answers in the answer script.

(Part : A —OBJECTIVE)

(Marks : 34)

Section I

(Marks : 20)

A. Choose and write the correct answer of the following from the given alternatives : 1x20 =
20

1. Economic problem arises due to the fact that :

a) Resources are scarce b) human wants are unlimited
b) Resources have alternative uses d) all of these

2. Normative economics deals with :

a) Facts b) opinions c) both(a) and (b) d) none of these

3. A statement which does not offer any suggestions is known as ?

a) Positive statement b) normative statement c) both (a) and (b)

d) None of these

4. Slope of production possibility curve is :

a) A straight line b) convex to the origin c) concave to the origin

d) none of these

5. The following table shows the production possibility curve of cricket bats and sarees

Production of cricket bats O 1 2 3 4 5

Production of sarees 75 70 62 50 30 0
If the production of cricket bats is increased from 3 to 4, what is the opportunity cost that
the economy has to bear?

a) 0 b) 8 sarees c) 30 sarees d) 20 sarees

6. The problem of What to produce relates to

a) Choice of technique b) distribution of income

c) value of goods and services d) choice of goods and services

7. Which analysis can be measured in definite numbers such as 1,2,3,4 etc ?

a) Cardinal utility b) Ordinal utility c) both (a) and (b)

d) none of these

8. Want- satisfying power of a commodity is called

a) Consumption b) utility c) production d) value addition

9. When marginal utility is zero, total utility is

a) Zero b) diminishing c) maximum d) minimum

10. Law of diminishing utility states that when more and more units of a commodity are
consumed, marginal utility

a) Begins to increase b) remains constant c) begins to decrease

c) becomes 0

11. Ordinal utility is expresses utility in terms of

a) units b) ranking of satisfaction c) constants d) none of these

12. Diagrammatic representation of consumer’s indifference set is called as

a) indifference curve b)utility curve c) budget line d) transformation curve

13. Budget line indicates

a) price ratio b) income ratio c) cost ratio d) none of these

14. An indifference curve is related to

a) consumer’s income b) prices of goods X and Y

c) total utility from goods X and Y d) choice and preferences of the consumer

15. In an indifference map, higher IC indicates

a) lower level of satisfaction b) same level of satisfaction

c) higher level of satisfaction d) both (b) and (c)

16. Downward sloping of the demand curve shows

a) positive relationship between price and demand

b) inverse relationship between price and demand
 c) no relationship d) none of these

17. How are two goods apple and mangoes related to each other

a) substitute goods b) complementary goods c) normal goods

d) inferior goods

18. Law of demand must fail in case of

a) normal goods b) giffen goods c) inferior goods d) none of these

19. A fall in own price leads to

a) increase in real income of the consumer

b) decrease in real income of the consumer
c) increase in the purchasing power of the consumer
d) Both (a) and (c)

20. If two goods are complementary then what will happen to the demand of Good X if
price of Good Y falls

a) Fall in the demand for good X b) increase in the demand for good X

c) Demand of good X remains constant d) none of these

Section II

( Marks : 14 )

B. Answer the following in two or three sentences each (Choose any 14 ) : 1x 14 = 14

1. Define Microeconomics ?
2. Define Scarcity ?
3. What is meant by an economy?
4. What is the Production possibility curve?
5. Define opportunity cost?
6. What is meant by utility?
7. State the law of diminishing marginal utility?
8. What is meant by ordinal measurement of utility?
9. Define indifference curve?
10. Define demand?
11. Define normal goods?
12. Define inferior goods?
13. Define complementary goods?
14. Define giffen goods?
15. What do you understand by substitute goods?
 ( Part B— Descriptive)

( Marks : 66 )

Section I

C. Answer the following briefly ( Choose any 9) : 4 x 9 = 36

1. What are the central problems of an economy?

2. Differentiate between Positive economics and Normative economics?
3. What are the reasons for economic problems?
4. Distinguish between cardinal utility and ordinal utility?
5. Distinguish between normal good and inferior good?
6. Differentiate between Individual demand and Market demand?
7. State the assumptions of the law of demand ?
8. What are the exceptions to the law of demand?
9. Differentiate between extension and contraction of demand?
10. Differentiate between Movement in demand and shift in demand?
11. Ice cream sells for Rs 20. When the consumer consumed 4 ice creams, marginal utility of
money is 4. Find MUx and should the consumer consume more or stop consuming?

Section II

D. Answer the following in detail ( choose any 5 ) : 6 x 5 = 30

1. Explain the concept of Production Possibility curve with the help of a diagram.
2. Explain the meaning of consumer’s equilibrium with the help of a table and diagram?
3. Aarav has Rs 88 with him. He intended to purchase good x and y with his money. The parket
price of X and Y per unit is Rs 8. The marginal utility schedule of good x and y is given below.
Find out how many units of X and Y should Aarav purchase so that he will get maximum
satisfaction

Units of Commodity MUx MUy

1 88 40
2 72 36
3 64 24
4 56 20
5 48 16
6 40 12
7 32 8
8 24 4
9 16 0
10 8 0

4. Explain the properties of an indifference curve?

5. Explain the determinants of Demand?
6. Give reasons why the demand curve slopes downward?