Practice Paper
TERM II (2021 – 2022)
Class – XI
Economics (030)
Time: 2 hours Maximum Marks: 40
General Instructions:
• This is a Subjective Question Paper containing 13 questions.
• This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 question of 5 marks each.
• 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.
• 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.
• 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.
• This question paper contains Case / Source Based Questions.
1. A producer borrows money and opens a shop. The shop premises is owned by him. Identify implicit cost and explicit cost from this information. Also, explain.
OR
Explain the concept of the short –run and long –run.
2. State giving reasons, whether the following statements are true or false.
(a) When Marginal Revenue Is positive and constant, Average Revenue and Total Revenue will both increase at constant rate.
(b) When Marginal Revenue falls to zero, Average Revenue becomes maximum.
3. Complete the following table:
OR
What is meant by returns to a factor? State the law of diminishing returns to a factor?
4. “Is a firm under perfect competition a price taker, or a price maker?” Justify your answer.
OR
Explain the implication of freedom of entry and exit of the firms under perfect competition.
5. A firm supplies a certain quantity of a good at a price of ₹10 per unit. When price changes to ₹9 per unit the firm supplies 10 units less. Price elasticity of supply is 1, What is the quantity supplied before price change?
6. Market for a good is in equilibrium. There is an increase in demand for these goods. Explain the chain of effects of this change.
7. Consider the examples given below
(i) As price falls, demand for product ‘A’ increases.
(ii) Effect of adequate irrigation facilities, fertilisers and pesticides on per hectare productivity of wheat.
On the basis of above examples, explain the main difference between simple correlation and multiple correlation.
8. Calculate standard deviation and coefficient of variation from the following data with help of assumed mean method.
OR
The coefficient of variations of two series are 58% and 69% and their standard deviations are 21.2 and 15.6. What is their mean.
Read the following text carefully and answer question number 9 and 10 given below.
We frequently see index numbers, such as the Consumer Price Index (CPI), in our daily life. Economists often use the index numbers to compare values measured at different points in time. Using an index can make quick comparisons easy. The index numbers have become a widely accepted statistical device for measuring business activity changes. A typical use of the index number technique in business is to summarize complex situations, with a single performance index so that a dashboard (or report) would have enough space to show all CPIs. An index number is used to measure changes in the magnitude of a variable or group of variables regarding time, geographical location, or other characteristics such as profession. IT professionals who need to analyse economic and business activities, but have limited experience in statistics, want to learn how to construct and interpret performance indexes. Index numbers are also not free from criticism as its base year and commodity selection requires a lot of attention and expert attention.
9. What is an index number? Point out its utility.
10. What are the consideration underlying the choice of base period in the construction of an index number?
11. (i) Do you agree with the view that market absorbs the impact of increase or decrease in demand only through the Process of ‘extension and contraction of demand and supply? Give reason.
(ii) Farmers may suffer a loss even when there is a good harvest. Does your supply-demand analysis provide an answer to this paradox.
12. What is total cost, average cost and marginal cost? Explain the relationship between average cost and marginal cost with help of a table and diagram.
OR
Explain how change in prices of other products influence the supply of given products.
13. Calculate Karl Pearson’s coefficient of correlation between the price and quantity supplied by short-cut method and interpret the result.
