केंद्रीय विद्यालय संगठन, मंबई सम्भाग

KENDRIYA VIDYALAYA SANGATHAN MUMBAI REGION

Session Ending Examination 2022-23 िावषिक परीक्षा २०२२-२३

कक्षा Class- XIth SET 3

अर्थशास्त्र Economics

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MARKING SCHEME

खण्ड –अ (आर्थिक सांख्ययकी) Section –A Statistics for Economics

1. A) 15 1

2. B) Two-dimensional diagram 1

3. C) Telephone interview 1

4. B) Ramesh has a rupees hundred note in his pocket. 1

5. Prices 1

6. d) Based on calculations 1

7. (C) 5 1

OR

The Arithmetic Mean of a data set is what is usually called the Average of the values.

8. Extreme 1

9. (A) Same 1

10. (D) Assertion(A) is false but Reason(R) is true. 1

11.

OR

Rs. 122.5; Step-deviation method formula is: x = A + ∑fd / ∑fC

12. 3

Merits 1) Arithmetic mean rigidly defined by Algebraic Formula. 2) It is easy to calculate

and simple to understand. 3) It is based on all observations of the given data. 4) It is
capable of being treated mathematically hence it is widely used in statistical analysis
Demerits 1) it can neither be determined by inspection or by graphical location. 2)
Arithmetic mean cannot be computed for qualitative data like data on intelligence
honesty and smoking habit etc. 3) It is too much affected by extreme observations and
hence it is not adequately representing data consisting of some extreme point.

OR

Arithmetic mean

Marks No. of Students Fx

2 5 10
4 10 40
6 15 90
8 10 80
10 5 50
𝛴 𝑁 = 45 𝛴 𝑋 = 270
x = Σ fx/N 270/45=6 Marks

13. Diagram - Histogram 2

Diagram - frequency polygon 2

(Steps and procedures for constructing histogram and drawing frequency polygon)

OR

Any suitable diagram can be used Multiple bar diagram may be a better choice (steps
and procedures for constructing diagram)

14. 4

a) Formulation of price policy

b) Wage adjustment

c) Measurement of real value of rupee

d) Analysis of marke

15.

Grouping table 4

Analysis table Mode Group 40-50

Z= L1+ (fi-fo)/2fi-fo-f2*i

Z=40+(23-15)/(2*23-15-22)*10

Z=48.89

16.

A) Statistics deals with collection, presentation, analysis and interpretation of

quantitative information. 6

Characteristics of Statistics

• Statistics are numerically expressed.

• It has an aggregate of facts.

• Data are collected in systematic order.

• It should be comparable to each other.

• Data are collected for a planned purpose.

B) ‘The Government and policy makers use statistical data to formulate suitable policies
of economic development’. Illustrate with two example Statistics is useful in analysing
economic problem such as growing population, rising price, demand and supply,
unemployment, poverty etc. Any two example related to use of statistics by the Govt to
analysing ,to understand and to solve the economic problems (or relevant answer)

17. 3+3 = 6

a) Selection of base year is a problem in the construction of index numbers. Base Year
is the reference year. It is the year with which prices of the current year are compared.
As far as possible, Base Year should be a normal year. This means the Base Year
should be one without serious fluctuations in the economy. Otherwise, the index values
would fail to capture the real change in the variable.

b) The problem of Selection of Goods and Services is to be addressed while

constructing index numbers. For example, while constructing CPI it is neither possible
nor desirable to include all the goods and services produced in the country. We have to
choose those goods and services which represent most of others in the market. Larger
the number of goods and services more representative is the index number.

OR

The CPI is one of the most commonly used tools to measure inflation and deflation. 6
Inflation is an important indicator of an economy's health. Governments and central
banks use the CPI and other indices to make economic decisions

The production of index numbers is fraught with challenges. Following are the
difficulties faced in the Construction of Index Numbers –

1. Difficulties in Choosing a Base Period:

2. Problem in Commodity Selection:

3. Problems in Price Compendium:

4. Difficulty in Choosing a Statistical Approach:

5. Difficulties Resulting from Changes Over Time:

6. It is not possible to make a comparison:

7. It is not possible to make comparisons between different locations:

8. Not Appropriate to Individuals:

18. ANS - (c) Maximum. 1

19. ANS -(c) Marginal Revenue 1

20. a) Perfect Competition Market 1

OR

AFC

21. False 1

22. ANS- (d) d) None of the above 1

23. b) Increase in Price of a commodity 1

24. Inverse 1

25. Substitute 1

26. Fall 1

27. b) L 1

28. Main features of perfect competition are as under – 3

1 Large number of buyers and sellers - Under perfect competition buyers and
sellers are in such a large number so that neither a single buyer nor a single seller
can influence the market. It is because each seller sells a very small portion of the
market supply, similarly the demand of each buyer is also very small in the market.

2 Homogeneous product - The product sold in the market is homogeneous or

identical in all respect i.e. shape, size, colour, composition, etc.
3 Free entry and exit of firms - Under perfect competition there are no barrier to
entry and exit of firms in industry. But entry and exit may take time so it happens
only in long runs.
4 Perfect knowledge of market- In this market all the sellers as well as buyers
have the complete information about the market situation. It means they are well
aware about the product and its price.
5 Perfect mobility – The factors of production i.e. land, labour, capital and
entrepreneur are perfectly mobile. There is no geographical and occupational
restriction on their movement. It means factors of production are free to move
from one place to another place and one job to another job in which they get
better price.
 29. Relationship between Total cost, Total Fixed cost and Total Variable cost-----

Output (Units) Total cost (Rs.) Total fixed cost Total

(Rs.) variable cost
(Rs.)
0 10 0 10
1 10 10 28
2 10 18 28
3 10 24 34
4 10 28 38
5 10 32 42
6 10 38 48

1) TFC is constant all levels of output

2) TVC increases as output increases
3) TC is parallel to TVC. It shows that the difference between TC and TVC is
constant s

30. Relationship between marginal cost and average cost 4

(i) When marginal cost is less than average cost, average cost falls.

(ii) When marginal cost is equal to average cost, average cost is minimum.

(iii) When marginal cost is greater than average cost, average cost rise

31. formula -1 mark

calculation -2 marks
 answer- 44 units

OR

Schedule-1 mark

Diagram-1 mark

Explaination- 2 marks

32.

OR

Positive economics deals with those statements of economic behaviour, relating to

“what was”, “what is” and “what would be”. These statements may be true or false.
Positive economics does not involve value judgement and these statements are
verifiable. For example, “China has the largest population in the world” or “India has the
largest population in the world”. Both statements relate to Positive economics. While the
first statement is true, the second statement is false.

On the other hand, Normative economics relates to economic problems dealing

with “what ought to be”. These statements can not to be termed as true or false
because they involve opinions. Normative statements cannot be verified and they
involve value judgments. For example, “No subsidies should be given in the agricultural
sector in India”. This statement is open to be discussed for different opinions.

OR

33.

Indifference curve is a curve which shows various combinations of two goods which
give same level of satisfaction to the consumer.

Properties or Feature of Indifference curve--

33.

Indifference curve is a curve which shows various combinations of two goods which
give same level of satisfaction to the consumer.

Properties or Feature of Indifference curve

1. IC is downward sloping - It is always downward sloping because IC assumes that

the combination of both the goods gives a certain level of satisfaction to the consumer.
So, in order to increase the consumption of one commodity consumer has to decrease
the consumption of another commodity.

2. IC is convex to origin - It is convex to origin because of decreasing Marginal rate of

substitution (MRS). This is because, as the consumer has more and more units of X, its
marginal significance to him declines. So he is willing to give up less and less units of Y
for an increment in X.

3. Higher IC shows higher level of satisfaction - As compared to lower IC, certainly

higher IC show higher level of satisfaction. It is because higher IC has more quantity of
one good without reducing quantity of another good.

4. ICs do not intersect each other - Each IC represents different level of satisfaction,
so there intersection is ruled out.

OR

Consumer’s Equilibrium - A consumer shall be in equilibrium where he can maximize

his satisfaction subject to his budget constraint and does not want to bring any change
in it. Indifference curve approach explains the consumer equilibrium with the help of
indifference map and budget line.

Conditions of Consumer’s Equilibrium - If consumer is consuming two goods say

good X and good Y. Then at equilibrium point

i) Budget line should be tangent to indifference curve i.e. slope of indifference

curve and budget line is equal to each other. It means MRSXY

𝑃𝑥
𝑃𝑦

ii) Indifference curve should be convex to the point of origin i.e. MR SXY is decreasing.
We can explain it with the help of following diagram In diagram, AB is budget line and
three indifference curves are IC1, IC2 and IC3. The various combinations of good X &
good Y which consumer can purchase with his given income are M, E and N. But M & N
lie on IC1 whereas E lies on IC2 . Since E is on higher indifference curve, so it will give
more satisfaction to the consumer as compared to M & N. At point E budget line is
tangent to IC2 , and IC2 is convex to origin. So E is equilibrium point where consumer
will get maximum satisfaction by consuming OX1 quantity of good X and OY1 quantity
of good Y.

34. 6

Producer’s equilibrium refers to the state in which a producer earns his maximum profit
or minimise its losses. According to MR-MC approach Two conditions under this
approach are:

1 MR = MC
2 MC curve should cut the MR curve from below, or MC should be rising. As
long as the addition to revenue is greater than the addition to cost. It is
profitable for a firm to continue producing more units of output. In the
diagram, output is shown on the X-axis and revenue and cost on the Y-axis.
The Marginal Cost (MC) curve is U-shaped and P ~ MR = AR, is a horizontal
line parallel to X-axis. MC = MR at two points Q1 and Q2 in the diagram, but
profits are maximised at point Q2, corresponding to Q 10 level of output.
Between Q2 and Q10 levels of output, MR exceeds MC. Therefore, firm will
not stop at point R but will continue to produce to take advantage of
additional profit. Thus, equilibrium will be at point Q2, where both the
conditions are satisfied. Situation beyond Q2 level: MR < MC When output
level is more than Q10, MR < MC, which implies that firm is making a loss on
its last unit of output. Hence, in order to maximise profit, a rational producer
decreases output as long as MC > MR. Thus, the firm moves towards
producing O Q units of output.

Table 1. MR, MC and Producers Equilibrium

Q ( Unit of output) MR(रु) MC (रु)

1 12 15
2 12 12
3 12 10
4 12 9
5 12 8
6 12 7
7 12 8
8 12 9
9 12 10
10 12 12
11 12 15