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. What do you mean by absolute measure and relative measure of dispersion?
2. Write any two importance of Index numbers.
OR
State any two limitations of index numbers.
3. Explain the concept of short run and long run in production function.
4. A firm is producing 20 units. At this level of output, ATC and AVC are respectively equal to Rs. 40 and Rs. 37. Find out the Total Fixed Cost of the firm.
OR
What does the average fixed cost curve look like? Why does it look so?
5. State any two merits of Scatter diagram method.
OR
Distinguish between simple and partial correlation.
6. Write the steps for the calculation of standard deviation using Actual mean method in case of individual series.
7. Construct price index number from the following data by using Laspeyre’s method.
8. When market price of a commodity is Rs 4 per unit, a seller is willing to sell 50 units of the commodity. As the price rises to Rs 5 per unit, he is willing to sell 60 units. Calculate the price elasticity of supply.
9. What difference does it make to a perfectly competitive market when we say that there is large number of buyers in it? Explain.
10. Distinguish between ‘Explicit Cost’ and ‘Implicit Cost’. Give one example of each.
OR
An individual is both the owner and the manager of a mall taken on rent. Identify implicit and explicit costs from this information. Give reasons.
11. State with valid reasons, whether the following statements are true or false.
(i) Marginal revenue can never be equal to price of the commodity.
(ii) MR can be negative in case of perfect competition.
12. Calculate co-efficient of correlation between X and Y by actual mean method.
13. Read the following case study carefully and answer the following questions on the basis of the same:
With a price floor, the price is set above the equilibrium price. The government may decide that the equilibrium price is not high enough and is causing social problems. For instance: the American farmer, through technology and science, is a producer of large amounts of food products. This has, however, not been to the farmer’s advantage. When there is a large supply and not as much demand, the price drops. It has been the case with American farmers, large supplies, low demand, and low prices. Low prices result in low incomes. In order to offset this, the government has enacted price supports to raise the price of agricultural products.
(i) If the prevailing market price is above the equilibrium price, explain its chain of effects.
(ii) Explain the concept of ‘Buffer Stock’ as a tool of price floor.