Economics Sample Paper Class 11 - Studymate

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1.  [1]
Section A – Micro Economics
1. Give one example of normative statement. [1]
2. What is the area under price line equal to. [1]
3. What happens to profit/losses in the long run if firms are free to enter the industry? [1]
4. Factor ratio remains same under law of variable proportions. True or false. [1]
5. Why are firms said to be interdependent in an oligopoly market? Explain. [3]
6. Complete the following PPC and comment on the shape of a curve it is likely to attain. [3]
Combinations Tea Coffee MRT MOC
A 15 0 – ________
B ________ 1 1 : 1 ________
C ________ 2 2 : 1 ________
D 9 ________ ________ ________
E 5 ________ ________ ________
F 0 5 5 : 1 ________
OR
(a) Distinguish between microeconomics and macroeconomics with example.
(b) Explain the central problem of 'for whom to produce' with example.
7. Raj buys more of good X either when it's price falls or when the price of its substitute rises.
Distinguish between these two situations with the help of a diagram and a schedule. [4]
8. (a) Give example of a good which is normal good for one household and inferior good for
another household.
(b) When price of commodity falls by Rs. 2 per kg its quantity demaned increases by 2.5 kgs.
Calculate the original and new demand if the price before change was Rs. 10 per unit and
the shape of demand curve of a commodity is rectangular hyperbola. [2+2]
9. State two conditions of consumer equilibrium in equi-marginal utility analysis and find
equilibrium in the following table when price of bread is Rs. 4, price of milk is Rs. 2 and
consumers income is Rs. 16. [4]
Combinations MU of bread MU of milk
1 16 14
(2018-19)
Date : ___________
Duration : 3 Hrs.
Max. Marks : 80
Class
XI
Economics
Instructions:
4 All questions are compulsory.
4 Question numbers 1-4 and 13-16 carry the weightage of 1 mark. They need to be answered in single sentence.
4 Question numbers 5-6 and 17-18 carry the weightage of 3 marks. Answer to them should not exceed 60 words.
4 Question numbers 7-9 and 19-21 carry the weightage of 4 marks. Answer to them should not exceed 80 words.
4 Question numbers 10-12 and 22-24 carry the weightage of 6 marks. Answer to them should not exceed 120 words.
4 Use of calculators is not allowed.
Sample Paper

2.  [2]
2 12 10
3 8 8
4 4 6
5 2 3
6 0 1
OR
A consumer is willing to sacrifice 3 unit of X to obtain one more unit of Y. Price of X and Y are
Rs. 6 and Rs. 3 respectively. Answer the following questions.
(a) Is the consumer in equilibrium. What would be he do to maximise his satisfaction given
the price of two commodities.
(b) Higher indifference curve means higher utility. Explain.
10. (a) Complete the following table: [6]
Output AFC TFC TVC MC
0
1
2
3
4
–
–
–
–
–
50
–
–
–
–
–
–
18
–
20
–
10
–
6
–
(b) What is the behaviour of TP and MP when more units of variable factor are employed with
fixed factors in the short run.
11. (a) Find out the level of output at which the producer is in equilibrium under perfect
competition when price of a commodity is Rs. 20 (using following schedule). [3+3]
Output 1 2 3 4 5 6 7
TC 23 42 60 76 95 115 137
(b) Supply curve is the rising portion of MC curve over and above the minimum of AVC? Do
you agree. Support your answer with reason.
12. (a) A severe drought result in a drastic fall in the output of rice. Analyse how will it affect the
market price of wheat.
(b) Explain the implication of ceiling on price by government. Use diagram. [6]
Section B – Statistics
13. What is the difference between linear and curvilinear correlation. [1]
14. Quartile is a type of: [1]
(a) Mathematical average (b) Statistical average
(c) Partition value (d) None
15. Coefficient of variation is a percentage expression of [1]
(a) Mean deviation (b) Q.D. (c) S.D. (d) None
16. The index of prices is estimated to be 112 in 2014. In comparison to the base year prices in
2014 are higher by what percentage. [1]
17. Distinguish between primary data and secondary data. [3]
OR
Explain any three qualities of a good questionnaire.
18. Find the missing item, if mean of the following series is 50. [3]
Marks 30 35 40 ? 50 75
No. of student 1 2 3 4 6 4

3.  [3]
19. Represent the following data of faculty-wise distribution of students of a college for 3 different
years by multiple bar diagram. [4]
Year Arts Commerce Science
2005
2006
2007
540
650
730
325
410
520
250
275
350
OR
Show the following details of the monthly expenditure of two families given below by sub-
divided bar diagram or component bar diagram.
Item of Expenditure
(Expenditure)
Family A (income 25,000) Family B (income 40,000)
Food
Clothing
House Rent
Miscellaneous
Savings
10,000
5,000
4,000
4,500
1,500
12,000
10,000
6,000
8,000
4,000
20. Find out mode of the following series. [4]
Size 8 9 10 11 12 13 14 15
Frequency 5 6 8 7 9 8 9 6
21. For the following data calculate Standard Deviation taking assumed mean = 24.5. [4]
Class 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
Frequency 4 5 6 2 3
22. Draw a ‘less than’ ogive and ‘more than’ ogive curves for the following frequency distribution :
[6]
Marks 0–10 10–20 20–30 30–40 40-50 50-60
No. of Student 3 4 8 10 3 2
23. From the following data, calculate price index numbers of 2007 with 1993 as base by
(i) Laspeyre’s Method (ii) Paasche’s Method, (iii) Fisher’s Method. [6]
Marks Base Year (1993) Current Year (2007)
Commodity Price (`) p
0
Quantity q
0
Price (`) p
1
Quantity q
1
A
B
C
D
20
50
40
20
8
10
15
20
40
60
50
20
6
5
15
25
24. Calculate the coefficient of correlation of the following data by the Spearman’s Rank Correlation
method: [6]
X 19 24 12 23 19 16
Y 9 22 20 14 22 18
OR
Calculate the coefficient of correlation for the following data by the Actual Mean Method.
X 12 15 18 21 24 27 30
Y 6 8 10 12 14 16 18
vvvvv

4.  [4]
(2018-19)
Date : ___________
Duration : 3 Hrs.
Max. Marks : 80
Class
XI
Economics
1. Minimum wags should be guaranteed by the Government in all economic activities.
2. TR
3. Firms will earn number normal profit in the long run if entry & exist ore free.
4. False, factor ratio changes as more of variable factors are employed with fixed factors.
5. This is because when the number of competitors is few, any change in price, output of product by a firm will have direct
effect on the sales of rivals, who will then retaliate by changing their own prices, output or advertising technique as the
case may be. It is, therefore, clear that an oligopolistic firm must consider not only the market demand for its product,
but also the reactions of other firms in the industry to take any major decision.
6.
Combination Tea Coffee MRT MOC
A 15 0 - -
B 14 1 1 : 1 1
C 12 2 2 : 1 2
D 9 3 3 : 1 3
E 5 4 4 : 1 4
F 0 5 5 : 1 5
OR
(a)
MICROECONOMICS MACROECONOMICS
1. It is the study of individual economic units, like
price of a particular commodity, output of a firm,
etc.
1. It is the study of an economy as a whole or national
aggregates like inflation, national income etc.
2. Price determination and allocation of resources is
the main or central problem. Thus, it is also called
as Price-theory
2. Determination of level of income and output is the
main of central problem. Thus, it is also called as
Theory of Income and Empowerment.
3. It is analysed through demand and supply of a
particular or good/factor.
3. It is analysed through aggregate demand and
aggregate supply in the economy.
4. It deals with how to attain consumer equilibrium,
producer equilibrium, etc.
4. It deals with the determination of equilibrium level
of national income, output, etc.
(b) For Whom to Produce? Once the problems of ‘what’ and ‘how’ to produce are solved, the goods are then
produced. Because the resources and the resulting output of goods is limited, the third basic economic decision,
which must be taken is ‘for whom to produce’. ‘For whom to produce’ means how the national produce is to
be distributed among the members of the society. In other words, for whom to produce means who should get
how much of the total amount of goods and services produced in the economy. Thus, the third problem is the
problem sharing of the national produce.
The distribution of national output and income is done in the following two ways:
(i) Inter-Personal distribution: This implies distribution among individuals in the society
(ii) Factoral distribution: This implies distribution among different factors of production, namely, land,
labour, capital and entrepreneur.
The main question revolves around that whether distribution promotes equality or not. Promotion of equality
in the society would require equitable distribution of output in the economy. This would lead to a greater social
welfare but at the same time, may diminish the incentive to produce more. On the other hand, inequality will
induce a higher level of production and thus, a higher growth rate for the economy. The choice varies in different
economic systems. While, socialist economy would definitely promote social welfare by equal distribution, a
capital economy would lead to unequal distribution but a higher growth rate.
Hints/Solutions to Sample Paper

5.  [5]
7. Increase in Demand Vs Expansion of Demand
BASIS INCREASE IN DEMAND EXPANSION OF DEMAND
Meaning Increase in demand means rise in quantity
demanded due to change in factors other than
own price of the good. Here, consumer demands
more quantity at the same price.
Expansion of demand means rise in
quantity demanded due to fall in price of the
commodity itself.
Reasons 1. Favourable change in taste
2. Increase in price of substitute goods.
3. Fall in price of complementary goods
4. Increase in income of consumers (incase of
normal goods)
5. Fall in income of consumers (in case of inferior
goods.)
It is caused by fall in price of the commodity
itself
Shift vs
Movement
There is rightward shift in demand curve.
This is because there is a change in demand.
There is a downward movement along the
demand curve. This is because there is
change in quantity demanded.
Schedule and
dig.
8. (a) A good can be a normal good for the consumer at some levels of income and an inferior good at other levels of
income. For example, at very low levels of income, as income of a consumer increases, he increases demand for
coarse cereals because his level of consumption is below the minimum. But after a certain level of income, any
increase in income of the consumer will reduce his consumption of coarse cereals like maize, bajra etc. because
he will now substitute superior cereals like wheat and rice.
(b) Price before change = P = 10/unit
Change in price = DP = 2/kg
Increase in Q.d = DQ = 2.5 kg
∈d = 1 [  given rectangular hyperbola]

∆
∆
Q
P
P
Q
d×=ε

25
2
10
1
.
×=
Q
P = 10
P
1
= 8
4P = 2 q = ?
<19> 2.5 q
1
= ?
Q = 12.5 kg
Original demand = 12.5 kg
New demand = Q + DQ = 12.5 + 2.5 = 15 kg

6.  [6]
9.
Combination MU of bread
MU of bread in
terms of money
MU
r
Mu in terms of
money
1
2
3
4
5
6
16
12
8
4
2
0
4
3
2
1
0.5
0
14
10
8
6
3
1
7
5
4
3
1.5
0.5
Consumer will be in equilibrium when be consumers 2 unit of breads & 4 units of milk because at this consumption
bundle.

MU
Px
MU
rr
= = = =
Pr
12
4
6
2
3 units.
& Also 4.2 + 2.4 = 16
consumer spent all of his income.
OR
(a) No consumer is not in equilibrium or
MRS ≠ MRε
3 ≠ 2
(b) As consumer is willing to sacrifice more unit of 4 then what market required
(i) The consumer will consume more of x.
(ii) Marginal utility of x falls due to law of DMU.
(iii) MRS
xy
falls.
(iv) He will consumer more of x tills MRS
x4
= MRE.
(c) This is because a higher indifference curve represents more quantity of both the goods or at least of one good.
Since we assume that a consumer has monotonic preferences i.e., more goods means more utility, a higher IC
representing more amount of goods, shows a higher level of utility.
10. (a)
Output AFC TFC TVC MC
0
1
2
3
4
∞
50
25
16.67
12.5
50
50
50
50
50
–
10
18
24
20
–
10
8
6
4
(b) Refer studymate book
11. (a)
Output TC MC Price AR TR = P × Q MR
1
2
3
4
5
6
7
23
42
60
76
95
115
137
23
19
18
16
19
20
22
20
20
20
20
20
20
20
20
40
60
80
100
120
140
20
20
20
20
20
20
20
At output levels 1st and 6th units, both MR and MC are equal, which is 20 in both the cases. But producer is in
equilibrium at 6th unit only where profit is maximum (100)
(b) Refer studymate

7.  [7]
12. (a)
E
1
E
P
1
P
Price
()`
(Wheat)
S
QQ
1
D
QD and Qs of wheat
Ø Demand & wheat Rises (Demand shit rightwards
Ø Situation of excess demand in the marginal
Ø Excess demand leads to rise in price due to competition among buyers
Ø Market price rises
Ø When price rises expansion in supply and contraction in demand till new equilibrium is establish till e
1
.
(b) Shortage: Since the price is set below the equilibrium price, there is excess demand in the market. All of the
consumers’ needs, cannot be met because producers supply less at a lower price. Thus, there is a shortage in
the market.
Black marketing: A black market is are in which the goods are sold illegally at a higher price than fixed by the
government. Since there is a shortage in the market due to price ceiling, producers try to exploit the consumers.
Since the demand cannot be met completely, some consumers are ready to pay a higher price for the good
needed. On the other hand, some sellers are also interested in getting a higher price to get more profits. In this
way, both buyers and sellers indulge in illegal transaction. As a result, the price sometimes rises even above the
equilibrium price and the entire purpose of price ceiling is lost.
Rationing: Since there is a shortage in the market the consumers cannot get all what they want. Because of
limited supply, the government distributes the essential goods in limited quantities to the consumers at the
control price. This is known as rationing and is done through ration shops. For this, government has established
Public Distribution System (PDS). It is necessary to accompany price ceiling with rationing so as to protect the
consumers and prevent emergence of black market.
13. Linear correlation is said to exist if the amount of change in one variable tends to bear a constant ratio to the amount
of change in the other variable.
In non linear or curvilinear correlation, the amount of change in one variable does not bear a constant ratio to the
amount of charge in the other related variable.
14. (c)
15. (d)
16. 12%
17.
Basic Primary Data Secondary Data
Time factor It requires longer time for data collection. Secondary data requires less time.
Cost Factor The collection of primary data requires a
considerable amount of money and personals
as whole plan of investigation is initiated.
The collection of secondary data is cheaper
as it is taken from published or unpublished
material.
Reliability and
suitability
Primary data is more reliable and suitable to
the enquiry as the investigator himself collects
it.
Secondary data is less reliable and less
suitable as someone else has collected the data
which may not serve the purpose.
Precautions There is no great need for precautions while
using primary data.
Secondary data should be used with great care
and caution.
Organization
Factor
Collection of primary data requires elaborate
organization set up.
There is no need for organizational set up in
case of secondary data.
The basic difference between primary data and secondary data is of ‘degree’.
The data collected by one will be primary, but the same data used by another will make it secondary. For example, data
collected by Ministry of Human Resource with
(a) Number of Questions : The number of questions should be as small as possible. Long questionnaires discourage
people from completing them. Only those questions which have a direct relevance to the problem be include.
(b) Simple and short Questions: The questions should be clear, brief, and unambiguous. The question should be
framed in such a manner that their answer are specific and precise.
(c) Avoid Questions requiring calculations: The questions relating to mathematical computations or questions
which force the respondent to recollect from his memory should not be asked. For example, informants should
not be asked yearly income, since in most of the cases they are paid monthly.

8.  [8]
18. Let the missing item be x
Calculation of Missing item
Marks (X) No. of students (f) fX
30
35
40
x
50
75
1
2
3
4
6
4
30
70
120
4x
300
300
∑f = 20 ∑f X = 820 + 4x

X
fX
f
=
∑
∑

50
8204
20
=
+x
50 × 20 = 820 + 4x
x = 45 marks
Missing Marks = 45 Marks
19.

OR

20. The frequencies of two items: 12 and 14 have the highest frequency of 9. So, grouping of frequency is essential. The
method of grouping will be used for determination of mode.

9.  [9]
Table 1 : Grouping Table
Size
(X)
Frequency
(f)
In two’s In Three’s
Column I Column II Column II Column IV Column V Column VI
8
9
10
11
12
13
14
15
5
6
8
7
9
8
9
6
}
11
} 15
} 17
} 15
}
14
}
16
}
17
}
19
}
24
}
21
}
26
}
19
}
23
Table 2 : Analysis Table
Column No. 8 9 10 11 12 13 14 15
I
II
III
IV
V
VI 














Total – – 1 2 5 4 3 –
The size 12 is occuring maximum number of times (5 times). So, Mode = 12. Ans. Mode = 12
21. This is a case of inclusive class-intervals. So, it has to be converted into exclusive series.
Marks X No. of students
f
Mid-point
m
d = m – A
A = 24.5
d
XA
C
′=
−
C = 10
fd′ d′
2
t′d
2
9.5 – 19.5
19.5 – 29.5
29.5 – 39.5
39.5 – 49.5
49.5 – 59.5
4
5
6
2
3
14.5
24.5 (A)
34.5
44.5
54.5
–10
0
+10
+20
+30
–1
0
+1
+2
+3
–4
0
+6
+4
+9
1
0
1
4
9
4
0
6
8
27
N = Σf = 20 Σfd′ = 15 Σfd′
2
= 45
(i) Standard deviation
()σ=
′
−
′







×
∑∑fd
N
fd
N
C
2
2
Σfd′
2
= 45; N = 20; Σfd′ = 15; C = 10

σ= −






×= −× =× =
45
20
15
20
10 2255625 10 16875 10 12 99
2
.. ..

10.  [10]
22. For ‘Less than’ and ‘More than’ ogive curves, frequency distribution will be converted into cumulative frequency as
shown in the following table:
Cumulative Frequency Distribution
Marks No. of student Marks No. of students
Less than 10
Less than 20
Less than 30
Less than 40
Less than 50
Less than 60
3
7
15
25
28
30
More than 0
More than 10
More than 20
More than 30
More than 40
More than 50
30
27
23
15
5
2
By plotting less than cumulative frequency against the upper limit of the class-interval and more than cumulative
frequency against the lower limit of the class-interval, we get the following ‘less than’ and ‘more than’ ogive curves (see
figure)

23. Construction of Price Index Numbers
Base Year (1993) Current Year (2007)
Commodity Price (`)
p
0
Quantity
q
0
Price (`)
p
1
Quantity
q
1
p
0
q
0
p
0
q
1
p
1
q
0
p
1
q
1
A
B
C
D
20
50
40
20
8
10
15
20
40
60
50
20
6
5
15
25
160
500
600
400
120
250
600
500
320
600
750
400
240
300
750
500
Σp
0
q
0
=1,660
Σp
0
q
1
=1,470
Σp
1
q
0
=2,070
Σp
1
q
1
=1,790
(i) Laspeyre’s Method

P
pq
pq
01
10
00
100
2070
1660
100 124 69=× =× =
∑
∑
,
,
.
(ii) Paasche’s Method

P
pq
pq
01
11
01
100
1790
1470
100 121 77=× =× =
∑
∑
,
,
.
(iii) Fisher’s Method

P
pq
pq
pq
pq
01
10
00
11
01
100=× ×
∑
∑
∑
∑

=× ×= ×= ×=
2070
1660
1790
1470
100 151835 100 12322 100 123 22
,
,
,
,
.. .

Ans. (i) Laspeyre’s = 124.69; (ii) Paasche’s = 121.77; (iii) Fisher’s = 123.22.

11.  [11]
24. Calculation of Rank Correlation
X Y R
1
R
2
(R
1
– R
2
)
D
D
2
19
24
12
23
19
16
9
22
20
14
22
18
3.5
6
1
5
3.5
2
1
5.5
4
2
5.5
3
+2.5
+0.5
–3
+3
–2
–1
6.25
0.25
9
9
4
1
N = 6 ΣD
2
= 29.50
Here, number 19 is repeated twice in series X and number 22 is repeated twice in series Y. Therefore, in X, m = 2 and
in Y, m = 2.

r
Dm mm m
NN
k
=−
+− +− +






−
1
6
1
12
1
12
22 3
3
Σ () () ...........
∑D
2
= 29.50; N = 6

=−
+− +−






−
1
62950
1
12
22
1
12
22
66
33
3
.( )( )

=−
++
=−
×
=1
62950050 5
210
1
6305
210
0128
(. .. ).
.
Ans. Rank Coefficient of correlation = 0.128. There is very low degree of positive correlation.
OR
Calculation of Coefficient of Correlation (Actual Mean Method)
X-Series Y-Series
xy
X
xX X=−
x
2
Y
yY Y=−
y
2
12
15
18
21
24
27
30
–9
–6
–3
0
+3
+6
+9
81
36
9
0
9
36
81
6
8
10
12
14
16
18
–6
–4
–2
0
+2
+4
+6
36
16
4
0
4
16
36
54
24
6
0
6
24
54
∑X = 147 ∑x = 252 ∑Y = 84 ∑y
2
= 112 ∑xy = 168

X
X
N
Y
Y
N
Y
XY
XY
=
∑
==
=
∑
==
=
∑
∑× ∑
=
×
=
147
7
21
84
7
12
168
232 112
168
28 224
22 ,
===
168
168
1
vvvvv