11 Economics SP 01
11 Economics SP 01
11 Economics SP 01
Class 11 - Economics
Sample Paper - 01 (2023-24)
Maximum Marks: 80
Time Allowed: : 3 hours
General Instructions:
Section A
1. Assertion (A): Statistical techniques are used to analyze economic problems of countries like poverty, price control, etc.
Reason (R): The policy of family planning can be made effective in controlling the population of the country.
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. ______ is the ratio of the price of a certain commodity at the current year to its price at the base year.
a) price index
b) none of these
c) price relative
d) relative price
3. The range of simple correlation coefficient is:
a) Minus one to plus one
b) 0 to infinity
c) 0 to plus one
d) Minus infinity to infinity
4. Construct price index number from the following data by applying(Fisher’s ideal Method
Price Quantity Price Quantity
Commodity
(2000) (2000) (2001) (2001)
A 2 8 4 5
B 5 12 6 10
C 4 15 5 12
D 2 18 4 20
a) 144.5
b) 147.3
c) 144.7
Y 25 25 27 27 31 33 35 41 41 45
a) 0.75
b) 0.45
c) 0.89
d) 0.98
11. Explain four limitations of consumer price index numbers.
12. Calculate the arithmetic mean of marks of 6 students by assumed mean or short-cut method. Marks obtained (X) : 50, 54,
56, 58, 59, 60.
OR
Calculate the mean farm size of cultivating households in a village from the following data.
Farm Size (in acres) 64 63 62 61 60 59
100-199 4
200-299 5
300-399 6
400-499 3
500-599 5
Total 25
14. Construct the histogram for the following distribution.
Marks Obtained Number of Students
0-10 6
10-20 10
20-30 26
30-40 22
40-60 10
60-90 9
OR
Draw the ‘less-than’ and ‘more-than’ ogive from the data given below
Weekly Wages (in Rs.) Number of Workers
0-20 10
20-40 20
40-60 40
60-80 20
80-100 10
15. “Secondary data is ready for reference, while primary data has to be collected and processed”. Keeping in view the
above statement, differentiate between primary data and secondary data.
To practice more questions & prepare well for exams, download myCBSEguide App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams.
16. From the data given below, calculate Karl Pearson’s coefficient of correlation between the density of the population and
death rate by step deviation method.
Region Area(in sq km) Population Death
A 200 40000 480
35-40 16
40-45 18
45-50 23
50-55 18
55-60 8
60-65 3
OR
Sonia has annual income of Rs 1,00,000 while Mr. Sanju has an annual income of Rs 80, 00,000. The average income of
Sonia and Sanju is Rs 45,00,000 per annum. Do you think average income reflects the correct picture of the life of Sonia
and Sanju?
Section B
18. In case of increase in supply, we move:
a) from upper point to lower point of the supply curve
b) from lower point to upper point of the supply curve
c) to right on another supply curve
d) to left on another supply curve
19. A statement which does not offer any suggestion is known as:
a) normative statement
b) none of these
c) positive statement and normative statement
d) positive statement
20. The concept of supply curve is relevant only for?
a) Monopoly
b) Monopolistic competition
c) Oligopoly
d) Perfect competition
21. Which of the following statements is appropriate in case of monopoly?
a) Slope of both AR and MR curves is upwards
b) Slope of both AR and MR curves is downwards and MR curve is below AR
c) Slope of both AR and MR curves is downwards and MR curve is above AR curve
d) AR curve slopes upward while MR curve slopes downward
22. AC and AVC curves never meet each other because
a) Their difference is AFC is always greater than AC
b) Their difference is AFC is always greater than zero
c) Their difference is AFC is always negative
d) Their difference is MC is always greater than zero
23. Assertion (A): A person tends to buy more or less of a commodity.
Reason (R): Individual person's likes and dislikes tend to change with time.
a) Both A and R are true and R is the correct explanation of A.
OR
1 5 7
2 10 10
3 15 12
4 20 15
5 25 23
6 30 33
7 35 40
OR
Class 11 - Economics
Sample Paper - 01 (2023-24)
Section A
1. (b) Both A and R are true but R is not the correct explanation of A.
Explanation: Statistical techniques are used to analyze economic problems of countries like poverty, price control,
etc. The policy of family planning can be made effective in controlling the population of the country.
2. (c) price relative
Explanation: Price Relative = P1 / P0 ∗ 100.
Price relative unlike price index takes into account the price of single commodity.
3. (a) Minus one to plus one
Explanation: The size of correlation coefficient ranges from -1 to +1. This indicates the size of relationship between the
variables. When it is +1, there is perfect positive correlation and when it is -1, there is perfectly negative correlation.
4. (b) 147.3
Explanation:
Commodity
Price (P0) Quantity (q0) Price (P1) Quantity (q1) P1q0 P0q0 P0q1 P1q1
A 2 8 4 5 32 16 10 20
B 5 12 6 10 72 60 50 60
C 4 15 5 12 75 60 48 60
D 2 18 4 20 72 36 40 80
√251 220
= 172
× 148
× 100 = 147.3
5. (a) 125
Explanation: According to the question,
Given : P1 = P0 + 1.25
P0P1 = 2.25
We assume base price P0= 100
P1 = 2.25 ( 100)
P1 = 225
Price of that place = 225
6. (d) 150
Explanation: Base Year (1984) = 100
Increased to 250 in 1994
Hence the overall increment in prices is 250 - 100 = 150
21 27 -9 -6 81 36 54
24 27 -6 -6 36 36 36
27 31 -3 -2 9 4 6
30 (A) 33 (A) 0 0 0 0 0
36 35 6 2 36 4 12
39 41 9 8 81 64 72
42 41 12 8 144 64 96
48 45 18 12 324 144 216
∑ 0 0 1080 480 780
N ∑ XY − ∑ X ∑ Y
r=
√ N ∑ X2 − √
( ∑ X )2 N ∑ Y2 − ( ∑ Y )2
10 ( 708 ) − ( 0 ) ( 0 )
= = 0.98
√10 ( 480 ) − ( 0 )2√10 ( 1080 ) − ( 0 )2
11. 1. Errors may occur in the construction because of inaccurate specification of groups for whom the index is meant.
2. Faulty selection of representative commodities resulting out of unscientific family budget enquiries.
3. Inadequate and unrepresentative nature of price quotations and use of inaccurate weights.
4. Frequent changes in demand and prices of the commodity. The average family might not be always a representative
one.
12. When using the short cut method, we have to take an assumed mean. Here, let assumed mean A to be equal to 54. Then
we have the following table.
5 59 +5
6 60 +6
n=6 Σdx = + 13
OR
Here, Farm size is the variable X and the no. of cultivating households is the frequency, f. We have to multiply different
values of variable X with their respective frequencies and then find ΣfX. We calculate ΣfX in the table given below.
Calculation of Arithmetic Mean
Farm Size ( in acre) (X) Number of Cultivating Households (f) fX
64 8 512
63 18 1134
62 12 744
61 9 549
60 7 420
59 6 354
Σf = 60 ΣfX = 3713
99.5-199.5 4
199.5-299.5 5
299.5-399.5 6
399.5-499.5 3
499.5-599.5 5
Total 25
In this case, as the lower limit of first class is zero, hence 0.5 will not be subtracted from it.
In the above histogram, it can be observed that the frequencies corresponding to classes with lowest class width are not
affected.
OR
For less-than and more-than ogives, we will have to prepare less-than and more-than frequency distributions.
In less than method, the frequencies of all the preceding class intervals are added to the frequency of a class.
In more than method, the frequencies of all the succeeding class intervals are added to the frequency of a class.
The computation for both less than and more than ogive is given in the following table.
Less-than Distribution More-than Distribution
Weekly Wages (in Rs.) Number of Workers Weekly Wages (in Rs.) Number of Workers
The less-than’ and ‘more-than ogives of the given data are shown below
Organization Collection of primary data requires elaborate There is no need for organizational set up in case of
Factor organizational set up. secondary data.
Reliability Primary data is more reliable and suitable to Secondary data is less reliable and less suitable as
and the enquiry as the investigator himself someone else has collected the data which may not serve
suitability collects it. the purpose.
Region Density(X)
dx(X - A), A
= 500
dx'
()
dx
c1
,
dx'2
Death
Rate(Y)
dy(Y - A),
A = 16
dy'
()dy
c2
,
dy'2 dx'dy'
c1 = 50 c2 = 1
16.
A 200 -300 -6 36 12 -4 -4 16 24
B 500 0 0 0 16 0 0 0 0
C 600 100 2 4 15 -1 -1 1 -2
D 250 -250 -5 25 14 -2 -2 4 10
√ ( Σdx )
√ ( Σdy )
′ 2 ′ 2
∑ dx ′2 − n
× Σdy ′2 − n
( −9× −7)
32 − 4
= 2
( − 7 )2
√ √
( −9)
65 − 4 × 21 − 4
32 − 15.75
=
√65 − 20.25 × √21 − 12.25
16.25 16.25 16.25
= = 6.69 × 2.96
= 19.80
= 0.82
√44.75 × √8.75
Therefore, Karl Pearson's coefficient of correlation between density of population and death rate is 0.82.
Interpretation of r: There is a high degree of positive correlation between density of population and death rate.
35-40 16 30
40-45 18 48
45-50 23 71
50-55 18 89
55-60 8 97
60-65 3 100
n=100
Calculation of First and Third Quartiles and Median
Q1
=
( )100
4
th item = 25th item
()
n
( )
− cf 25 − 14
( )
4
Q1 = l1 + × c = 35 + ×5
f 16
11 × 5 55
= 35 + = 35 + = 35 + 3.4
16 16
=Q1=38.4
Q2 (Median)
= ( )
100
2
th item = 50th item
()
n
( )
2 − cf 50 − 48
∴ Median (M) = l 1 + × h = 45 + ×5
f 23
2×5 10
= 45 + = 45 + = 45 + 0.43 ⇒ M = 45.43
23 23
Q3
= ( )
3 × 100
4
th item = 75th item
()
3n
( )
4 − cf 75 − 71
∴ Q3 = l1 + c = 50 + ×5
f 18
4×5 20
= 50 + = 50 + = 50 + 1.1
18 18
⇒ Q3 = 51.1
OR
The average income looks good but in actual there is a huge disparity between the income of Sonia and Sanju. Sonia can
hardly meet her regular expenses with a income of rs 100000 while Sanju has huge amount of income which is more
than sufficient for him. The average income does not reflect the true picture of their life styles. The value equitable
distribution of income and wealth is missing in this case.
Section B
18. (c) to right on another supply curve
Explanation: Increase in supply refers to a situation when more is supplied at the existing price of the commodity. It
leads to a forward shift in the supply curve.
19. (d) positive statement
Explanation: Positive statements do not reflect any value judgement or opinion of the economists.
To practice more questions & prepare well for exams, download myCBSEguide App. It provides complete study
OR
Positive economics is objective and fact based, while normative economics is subjective and value based.
Positive economic statements must be able to be tested and proved or disproved. Normative economic statements are
opinion based, so they cannot be proved or disproved.
29. A product being perfectly homogeneous implies identical in size, quality, and quantity or identical in all respects.
Perfectly homogeneous product is sold in the market at a uniform price. If even an individual firm tries to charge a
higher price, it would lose all its buyers to a large number of other sellers, selling a homogeneous product at the
prevailing market price. For example in commodities market vegetables, fruits, grains, oil, metals and energy goods are
homogeneous goods. The buyers' purchase doesn't depend much upon the product as all are similar but more on the
price.
31. Profit = TR - TC
Average revenue is simply the revenue earned per unit of the output. In simpler words, it is the price of one unit of the
output.
TR
Quantity Sold TR TC Profit AR =
Q
0 0 5 0 - 5 = -5 -
5
1 5 7 5 - 7 = -2 =5
1
10
2 10 10 10 - 10 = 0 =5
2
15
3 15 12 15 - 12 = 3 =5
3
20
4 20 15 20 - 15 = 5 =5
4
25
5 25 23 25 - 23 = 2 =5
5
30
6 30 33 30 - 33 = -3 =5
6
35
7 35 40 35 - 40 = -5 =5
7
OR
i. a. At this point, where MR>MC both the equilibrium conditions (i) MR = MC (ii) MC should cut MR from below
are not satisfied.
ii. a. The firm will try to be in equilibrium by expanding the output to the level, where MC = MR.
b. The producer will get either maximum Profits or sets minimum losses at the Point of equality between MR and
MC.
c. At this point of equality of MR and MC, if the second condition of equilibrium is also satisfied only then the
producer will be in equilibrium because MR = MC or equality between MR and MC is a necessary but not a
sufficient condition of equilibrium.
d. The producer will be in equilibrium only when the following two conditions are satisfied simultaneously.
In the diagram given, P is the equilibrium point at which budget line touches the Indifference Curve IC2.
iii. The consumer’s consumption decision is explained by combining the budget line and the indifference map
33. Increasing returns to scale refers to a situation when the percentage increase in output is greater than the percentage
increase in all inputs. For e.g. a 10 % increase in all inputs causes a 20% increase in output.
Assumption: Input ratio remains constant.
Labour Capital Physical output
(units) (units) (units)
5 5 100
10 10 300
It is clear from the table that when labour and capital are doubled or are increased by 100% remaining their
ratio constant, physical output is more than double (increased by 200%). Hence, the situation of increasing returns.
Decreasing returns to scale refers to a situation when the percentage increase in output is less than the percentage
increase in all inputs. For example, if a car firm increases its variable inputs (capital, raw materials and labour) by 50%,
but the output of cars, increases by only 35%, then we say there are decreasing returns to scale from increasing the
number of inputs.
Assumption: Input ratio remain constant.
Labour Capital Physical
(units) (units) Output (units)
5 5 100
10 10 150
The table shows when labour and capital are doubled (or are increased by 100%) physical output increases only by 50%
(from 100-150 units). Hence, the situation of decreasing return to a scale.
34. Answer the following questions
2. Price Quantity
Given,
Given,
P = Rs 13
Q = 11 units
P1 = Rs 15
Q1 = 11 units,
P ΔQ 13 0
Ed = ( − ) Q × ΔP
= ( − ) 11 × 2
=0
Therefore, Ed = 0 or Demand is perfectly inelastic