Students must start practicing the questions from CBSE Sample Papers for Class 11 Economics with Solutions Set 6 are designed as per the revised syllabus.
CBSE Sample Papers for Class 11 Economics Set 6 with Solutions
Time Allowed : 3 hours
Maximum Marks : 80
General Instructions:
- All questions are compulsory.
- Marks for questions are indicated against each question.
- Q. No. 1 to 10 and 18 to 27 are Objective Type Questions / Multiple Choice Questions carrying 1 mark each.
- Q. No. 11 to 12 and 28 to 29 are Short Answer Type Questions I carrying 3 marks each.
- Q. No. 13 to 15 and 30 to 32 are Short Answer Type Questions II carrying 4 marks each.
- Q. No. 16 to 17 and 33 to 34 are Long Answer Type Questions carrying 6 marks each.
Section – A
Question 1.
The sources of data are: [1]
(A) Primary
(B) Secondary
(C) Both (A) and (B)
(D) Neither (a) nor (b)
Answer:
Option (C) is correct.
Explanation:
The data can be collected by the individual themselves, that is using the primary source, or can be collected by the already available data, that is secondary source.
Question 2.
When population under investigation is infinite, we should use: [1]
(A) Sample method only
(B) Census method only
(C) Both (A) and (B)
Answer:
Option (A) is correct.
Question 3.
Identify the correctly matched items from Column I to that of Column II: [1]
| Column I | Column II |
| A. Census method | 1. Inexpensive |
| B. Sample method | 2. Expensive |
| C. Primary data | 3. Time consuming |
| D. Secondary data | 4. Time consuming |
(A) A – 1
(B) B – 2
(C) C – 3
(D) D – 4
Answer:
Option (C) is correct.
Question 4.
We draw time series graph when __________ is given about the variables. [1]
(A) Frequency
(B) Time Period
(C) Class Intervals
(D) Deviations
Answer:
Option (B) is correct.
Explanation:
When statistical series changes with respect to time than it is called time series, when it is plotted on graph paper it is time series graph or time diagram or simply algebraic line graph.
Question 5.
The price of an article which was 150 in 2005 increased to 300 in 2007. The increase in 2007 on the base year 2005 was 100%. So, using 2007 as base year, the decrease in 2005 should have been: [1]
(A) 150%
(B) 100%
(C) 200%
(D) 50%
Answer:
Option (A) is correct.
Explanation:
Median can be determined by ogive and mode can be determined by the histogram
OR
Option (D) is correct.
Question 6.
Read the following Assertion (A) and Reason (R) and choose the correct alternative: [1]
Assertion (A): X-axis is also called abscissa.
Reason (R): Y-axis is called ordinate.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Answer:
Option (B) is correct.
Explanation:
They are just the names given but are not explanation why that names are given.
Read the following article and answer questions 7 to 10 that follows:
A measure of central tendency is a summary statistic that represents the center point or typical value of a dataset. These measures indicate where most values in a distribution fall and are also referred to as the central location of a distribution. You can think of it as the tendency of data to cluster around a middle value. In statistics, the three most common measures of central tendency are the mean, median, and mode. Each of these measures calculates the location of the central point using a different method.
Choosing the best measure of central tendency depends on the type of data you have. In this post, I explore these
That’s the area in the distribution where the most common values are located.
Question 7.
Which of the following is not a type of measure of central tendency? [1]
(A) Mean
(B) Mode
(C) Median
(D) Correlation
Answer:
Option (D) is correct.
Explanation:
Mean, mode, median, geometric mean and Harmonic mean are the ways to measure the central tendency.
Question 8.
What measure of central tendency will you use when you are finding the average age of the students in class XI? [1]
(A) Mean
(B) Mode
(C) Median
(D) None of them
Answer:
Option (A) is correct.
Explanation:
As the average age needs to be effected by extreme values, mean will be the best measure of central tendency.
Question 9.
What measure of central tendency will you use when you need to find what marks have maximum number of students got in statistics? [1]
(A) Mean
(B) Mode
(C) Median
(D) None of them
Answer:
Option (B) is correct.
Explanation:
As the maximum number of students is to be found, the marks with the maximum frequency needs to be seen, we need to use mode in that case.
Question 10.
Which of the following graph can be used to measure the mean? [1]
(A) Ogive
(B) Histogram
(C) Frequency Polygon
(D) None of the above.
Answer:
Option (D) is correct.
Explanation:
No graphs can be used to calculate the mean of the given data.
Question 11.
Give limitations of Index Numbers. [3]
Answer:
There are some limitations of index number such as:
(i) Estimates
(ii) International comparison is not possible
(iii) Arbitrary weightage
(iv) Limited use.
Question 12.
Average daily wage of ₹ 50 workers of a factory was ₹ 200. Each worker is given a raise of 20. What is the new average daily wage? [3]
OR
The size of land holdings of 380 families in a village is given below. Find the median size of land holdings. [3]
| Size of land holding (in acres) | No. of families |
| less than 100 | 40 |
| 100-200 | 89 |
| 200-300 | 148 |
| 300M00 | 64 |
| 400 and above | 39 |
Answer:
Increase in wages of each worker = ₹ 20
Total increase in wages = 50 × ₹ 20 = 1,000
Total wages before increase in wages = 50 × ₹ 200
= 10,000
Total wages after increase in wages = ₹ 10,000 + ₹ 1,000
= ₹ 11,000
New average wages = \(\frac{\Sigma X}{\mathrm{~N}}=\frac{\mathrm{₹} 11,000}{50}\) = ₹ 220
OR
| Size of land holdings (in acres) | No. of families (f) | c.f. |
| 0-100 | 40 | 40 |
| 100-200 | 89 | 129 |
| 200-300 | 148 | 277 |
| 300-400 | 64 | 341 |
| 400-500 | 39 | 380 |
| Σf = 380 |
Median = Value of \(\frac{11}{2}\) th item = \(\frac{380}{2}\)
= Value of 190th item
Value of 190th item lies in class interval of 200-300.
Hence, Median = l + \(\frac{\frac{N}{2}-c f}{f}\) × h
= 200 + \(\frac{190-129}{148}\) × 100
= 200 + \(\frac{61}{148}\) × 100 = 200 + \(\frac{6100}{148}\)
= 200 + 41.21
= 241.21 acres
Question 13.
Distribution of export is shown in the following table. Prepare a pie diagram to show the percentage distribution of export: [4]
| Country | Export (in %) |
| USA | 25 |
| Japan | 15 |
| UK | 30 |
| China | 20 |
| Others | 10 |
OR
Present the following data in the form of histogram:
| Weekly Wages (₹) | Number of Workers |
| 10-15 | 7 |
| 15-20 | 10 |
| 20-25 | 27 |
| 25-30 | 15 |
| 30-40 | 12 |
| 40-60 | 12 |
| 60-80 | 8 |
Answer:
For constructing a pie diagram, it is necessary to convert the percentage into angles of different degree. This conversion is shown below:
A pie diagram to show percentage distribution of export is given below:
As per the question, unequal distribution of weekly wages are given. Before plotting histogram, first of all we should adjust the frequency. [4]
Frequency distribution of given data is shown below:
A histogram in case of unequal class intervals is shown below:
Question 14.
Calculate the median of the following frequency distribution: [4]
| Class-Interval | Frequency |
| 0-20 | 4 |
| 20-40 | 10 |
| 40-70 | 26 |
| 70-120 | 8 |
| 120-200 | 2 |
Answer:
| Class Interval | Frequency (f) | Cumulative Frequency (cf) |
| 0 – 20 | 4 | 4 |
| 20 – 40 | 10 | 14 |
| 40 – 70 | 26 | 40 |
| 70 – 120 | 8 | 48 |
| 120 – 200 | 2 | 50 |
| N = Σf = 50 |
M = Size of \(\left(\frac{\mathrm{N}}{2}\right)^{\text {th }}\) item
= Size of \(\left(\frac{50}{2}\right)^{\text {th }}\) item
= Size of 25th item
which lies in 40 – 70 group
By Interpolation :
M = l1 + \(\frac{l_2-l_1}{f}\)(m – c)
⇒ M = 40 + \(\frac{70-40}{26}\)(25 – 14)
⇒ M = 40 + \(\frac{30}{26}\)(11)
⇒ M = 40 + \(\frac{330}{26}\)
⇒ M = 40 + 12.69
∴ M = 52.69 or 52.7
Question 15.
Determine the value of mode of the following distribution graphically and verify the results:
Answer:
Graphical representation.
Verification:
M0 = l1 + \(\frac{f_1-f_0}{2 f_1-f_0-f_2}\) × h
= 20 + \(\frac{14-12}{2 \times 14-12-10}\) × 10
= 20 + \(\frac{2}{28-22}\) × 10
= 20 + \(\frac{20}{6}\)
= 20 + 3.33
= 23.33
Now, more uniformity in wages has taken place.
Commonly Made Error
Students forget to join the lines of the highest bar to find the mode in the histogram and so are unable to verify the mode.
Answering Tip
Students need to focus on the steps that are there to find the mode with the help of a histogram.
Question 16.
Calculate Mode from the following data:
| Marks | No. of Students |
| 0-10 | 2 |
| 10-20 | 5 |
| 20-30 | 8 |
| 30-40 | 10 |
| 40-50 | 8 |
| 50-60 | 5 |
| 60-70 | 2 |
Answer:
| Marks | Frequency (f) |
| 0 – 10 | 2 |
| 10 – 20 | 5 |
| 20 – 30 | 8 |
| 30 – 40 | 10 |
| 40 – 50 | 8 |
| 50 – 60 | 5 |
| 60 – 70 | 2 |
By inspection, we observe that the modal class is 30-40 as it has the highest frequency.
⇒ Z = l1 + \(\frac{f_1-f_0}{2 f_1-f_0-f_2}\) (l2 – l1)
⇒ Z = 30 + \(\frac{10-8}{2 \times 10-8-8}\) × 10
⇒ Z = 30 + \(\frac{2}{4}\) × 10
⇒ Z = 30 + 5
∴ Z = 35
Question 17.
Construct Index Number of price of 2011 from the following data by:
(i) Laspeyre’s Method
(ii) Paasche’s Method
(iii) Fisher’s Method
OR
Calculate Rank Correlation Coefficient from the following data: [6]
Answer:
OR
Section – B
Question 18.
Read the following Assertion (A) and Reason (R) and choose the correct alternative:
Assertion (A): The difference between AC and AVC is due to AFC.
Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the eorrect explanation of Assertion (A)
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
OR
Read the following Assertion (A) and Reason (R) and choose the correct alternative:
Assertion (A): Increasing returns to a factor is a short run phenomenon.
Reason (R): Greater application of the variable factor ensures full utilization of the fixed factor
Alternatives:
(A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Answer:
Option (B) is correct.
Explanation:
AFC falls when output is increased. Since, the Total Fixed Cost remains the same with changes in output.
OR
Option (B) is correct.
Explanation:
Increasing Returns to a factor is a short run phenomenon as after a time the firm will enter the diminishing returns to a factor stage.
Question 19.
Identify the correct pair of items from the following Columns I and II:
| Column I | Column II |
| A. Increase in demand for a goods | 1. Leftward shift in the demand curve |
| B. Decrease in demand | 2. Perfectly elastic demand |
| C. Ed = ∞ | 3. Increase in income of the consumer |
| D. Downward sloping | 4. Income elasticity of demand |
(A) A – 1
(B) B – 2
(C) C – 3
(D) D – 4
Answer:
Option (A) is correct
Question 20.
Identify the correct pair of items from the following Columns I and II: [1]
| Column I | Column II |
| A. Demand Curve | 1. Downward sloping |
| B. Indifference Curve | 2. Upward rising |
| C. Marginal Utility Curve | 3. L-shaped curve |
| D. Total Utility Curve | 4. Y-shaped curve |
(A) A – 1
(B) B – 2
(C) C – 3
(D) D – 4
Answer:
Option (A) is correct.
Question 21.
In case of cardinal utility approach, utility is measured in:
(A) Rupees
(B) Ranks
(C) Utils
(D) None of these
Answer:
Option (C) is correct.
Question 22.
Which of these is not a property of Indifference Curve?
(A) Slopes downwards
(B) Concave to origin
(C) Two ICs cannot intersect each other
(D) Higher IC represents higher level of satisfaction
Answer:
Option (B) is correct.
Explanation:
An indifference curve is convex to AFC falls steadily with increase in output. The difference between AC and AVC is due to AFC. As output increases AFC falls, so the difference between AC and AVC falls.
OR
the origin because of diminishing marginal rate of substitution. It is downward sloping because if the quantity of one good is reduced then the quantity of the other good is increased. Therefore, an indifference curve is downward sloping and convex to the origin.
Question 23.
If there is no change in the demand for commodity X, even after rise in its price, then its demand is:
(A) Perfectly Elastic
(B) Perfectly Inelastic
(C) Highly Elastic
(D) Highly Inelastic
Answer:
Option (B) is correct.
Explanation:
Perfectly Inelastic Demand (Ed = 0): When change in price produces no change in demand, then such a demand is called perfectly inelastic demand. In this situation, demand curve is a straight line parallel to Y axis.
Read the extract given below and answer questions 24 to 27 that follows:
A producer (firm) is said to be in equilibrium when the firm is producing that quantity of output which gives the firm maximum profit.
For a firm, to be in equilibrium, two conditions must be fulfilled. First, and the necessary condition is that firm’s marginal cost equals marginal revenue.
Second, along with the first condition is that MC must be greater than MR beyond the level of output at which MC = MR. Therefore, fulfillment of the first condition alone does not ensure maximum profits. It is possible that MC = MR condition may be fulfilled at more than one output level but only that output level beyond which MC > MR is the maximum profit output level.
Question 24.
A producer is said to be in equilibrium when the firm is producing that __________ (quantity/quality) of output
Answer:
quantity
Question 25.
What is the first and necessary condition for equilibrium?
(A) MC is more than MR.
(B) MC is less than MR
(C) MC is equal to MR.
(D) MC is above MR.
Answer:
Option (C) is correct.
Question 26.
What is the second condition for equilibrium?
(A) MC cuts MR from below.
(B) MC must be greater than MR beyond the level of output at which MC = MR.
(C) Both (i) and (ii)
(D) None of the above.
Answer:
Option (C) is correct.
Question 27.
Fulfilment of both the conditions is necessary for __________ (maximising/minimising) profit.
Answer:
maximising
Question 28.
Market for a necessary good is competitive in which the existing firms are earning super-normal profits. How can the policy of liberalization by the government help in making the market more competitive in the interest of the consumers? Explain.
OR
How is the price of a commodity determined in a perfectly competitive market? Explain with help of a diagram. [3]
Answer:
Policy of liberalization will remove certain barriers like licensing, quotas from the market etc. Consequently, new firms will join the industry. This will make the market more competitive and the market supply will increase, implying a shift in the market supply curve to the right. Other things remaining constant, a rightward shift in the market supply curve will lead to a fall in equilibrium price and a rise in equilibrium quantity. Extra normal profits will ultimately be wiped out, and consumers are expected to enjoy larger quantity at a lower price.
OR
Price of a commodity is determined by market demand and market supply of a commodity, (i.e. industry is the price maker). An individual producer/ firm has no role in the determination of the price of the commodity (firm is a price taker). No individual seller or buyer can influence the price of the commodity.
DD and SS are market demand and market supply curves intersecting at E. OQ quantity (Equilibrium Quantity) would be offered for sale and demanded by the buyers at OP price (equilibrium price) per unit. The industry is in equilibrium.
Question 29.
What are the effects of ‘price-floor’ (minimum price ceiling) on the market of a good ? Use diagram. [3]
Answer:
Price Floor:
It means the minimum price fixed by the government for a commodity in the market. It is done with a view to stabilizing income of the producers. It also helps stabilizing the supply of the commodities in the market. Floor Price is often higher than the equilibrium price of the commodity. This is expected to cause excess supply in the market. In the figure, excess supply is equal to ab. In India, support price may be cited as an example of floor price. Support price is the assured minimum price offered by the government to the farmers for the purchase of their output. It is offered to the farmers in order to regulate their income.
Equilibrium Price = OP
Equilibrium Quantity = OL
Floor Price = OP1
Excess Supply = ab = L1L2
Commonly Made Error
Some students are not able to mark the Floor Price correctly on the diagram.
Answering Tip
Students must do ample practice of all the diagrams.
Question 30.
The price of a commodity rises from ₹ 5 to ₹ 6 per unit and its demand falls from 100 units to 70 units. Calculate its price elasticity of demand. [4]
Answer:
Given P = ₹ 5, P1 = ₹ 6, Q = 100, Q1 = 70
ΔP = P1 – P = 6 – 5 = 1,
ΔQ = 70 – 100 = (-) 30
Ed = \(\frac{\mathrm{P}}{\mathrm{Q}} \cdot \frac{\Delta \mathrm{Q}}{\Delta \mathrm{P}}\)
= \(\frac{5}{100} \cdot \frac{(-) 30}{1}\)
Question 31.
Calculate Marginal Cost at each level of output: [4]
| Output (Units) | Average Variable Cost (₹) |
| 1 | 12 |
| 2 | 11 |
| 3 | 10 |
| 4 | 9 |
| 5 | 9 |
| 6 | 10 |
Answer:
Calculation of MC
Question 32.
In what sense is the problem of ‘how to produce’ a central problem of an economy? Explain. [4]
OR
“There is a huge difference between two subject matter of economics.” Explain. [4]
Answer:
The problems of how to produce is a problem relating to choice of technology. There are two techniques of production:
(i) Labour Intensive Technique in which labour is used more than capital.
(ii) Capital Intensive Technique in which capital is used more than labour.
An economy must decide as to which technique is to be used so that efficient production is obtained. It is the central problem in every economy, because it impacts production (or efficiency) on one hand and the degree of employment on the other hand. Higher productivity often implies a lower degree of employment.
OR
The subject matter of economics that is Microeconomics is different from Macroeconomics in the following ways:
| Basis of Distinction | Microeconomics | Macroeconomics |
| 1. Meaning | It is the branch of economics that deals with the behaviour of individual economic unit. | It is the branch of economics dealing with the functioning of economy as a whole. |
| 2. Scope | Microeconomics has narrow scope as it studies individual economic units. | Macroeconomics has a wider scope, as it studies the economy as a whole. |
| 3. Area of Study | Microeconomics deals with determination of price and output in individual market. | Macroeconomics deals with determination of general price level and national output of the country. |
| 4. Central Problems | Price determination and allocation of resources. | Determination of income and employment. |
| 5. Main Tools | Demand and Supply | Aggregate Demand and Aggregate Supply. |
| 6. Equilibrium
Analysis |
Consumer and producer equilibrium in an industry | Determination of equilibrium level of income and employment. |
| 7. Example | Theory of price, theory of consumer behaviour, etc. | Theory of National Income, Money and Banking, etc. |
Question 33.
Explain the conditions of producer’s equilibrium in terms of Marginal Cost and Marginal Revenue. Use a schedule. [6]
OR
Explain any two causes of “Decrease” in supply of a good. [6]
Answer:
There are two conditions of producer’s equilibrium:
(i) MC = MR [1]
(ii) MC is greater than MR after equilibrium.
The conditions are fulfilled at 4 units of output.
| Output (Units) | MC (₹) | MR (₹) |
| 1 | 12 | 10 |
| 2 | 10 | 10 |
| 3 | 9 | 10 |
| 4 | 10 | 10 |
| 5 | 13 | 10 |
Explanation:
- So long as MC is less than MR, it is profitable for the producer to go on producing more because it adds to its profits. He stops producing more when MC becomes equal to MR.
- When MC is greater than MR after equilibrium, it means producing more will lead to decline in profit.
OR
Decrease in supply means decrease in supply due to factors other than price change. The causes are:
- Supply of a commodity will decrease when prices of inputs increase. This leads to an increase in cost of product. In this case, producer will be able to produce less number of goods with a given amount of capital.
- Supply of a commodity will decrease, if there is an increase in the price of other goods, because in such a case, firms will start producing more of the other goods whose price has increased.
- Taxation policy of the government also affect the supply of a good. Increase in GST on a particular good, will lead to an increase in its marginal cost thereby leading to a decrease in its supply.
Question 34.
Explain the conditions of consumer’s equilibrium using Indifference Curve analysis. [6]
Answer:
Consumer’s Equilibrium through Indifference Curve Approach.
According to Indifference Curve approach, consumer’s equilibrium is determined if the following two conditions are satisfied:
(i) MRSxy = Px / Py
(ii) MRSxy is declining.
MRSxy is the rate at which the consumer is willing to sacrifice Y to obtain one more unit of X.
Thus, we can say that, “A consumer is in equilibrium at a point where budget line is tangent to Indifference Curve”.
Slope of Indifference Curve = Slope of budget line,
MRSxy = Px / Py.
In the diagram, equilibrium is at point E, where the budget line touches the highest attainable indifference curve IC2 within consumer’s budget. Bundles on the Indifference Curve IC3 are not affordable within budget.
Bundles on the Indifference Curve IC1 (i.e, points F and G) are lying on a lower Indifference Curve i.e. will have lower utility levels as compared to the tangency point E. Therefore, the consumer will choose only the tangency point on the budget line. Therefore, E is a point of consumer’s equilibrium where he maximises his satisfaction. Point E is also called the “Optimum Consumption Point” where he consumes OX1 of X and OY1 of Y.
- If MRSxy > MRE, it implies that the consumer is willing to sacrifice more unit of Y than what market requires. This induces the consumer to buy more of X. When he buys more of X, utility derived from X falls and he is willing to sacrifice less of Y. Thus, MRSxy starts declining. He continues to consume more of X, till MRSxy = MRE = Px/Py.
- If MRSxy < MRE, it implies consumer is willing to sacrifice less units of Y than what the market requires. He decreases the consumption of X. Due to this MRSxy begins to rise. He continues to decrease the consumption of X till MRSxy = MRE.
Commonly Made Error
Students mostly confused between consumer’s equilibrium through indifference curve approach and consumer’s equilibrium through law of equi-marginal utility approach.
Answering Tip
Basic concept of both the approach should be cleared.