Class XI – Economics – Paper – 1

Ans. d) A is false but R is true.

Ans. a) 0 on 1

Ans. b) Linear correlation

Ans. a) 122.2

Ans. b) Relative number

Ans. c) Retail prices

Ans. d) Production

Ans. b) histogram

Ans. c) Consumer Price Index

Ans. c) 0.58

Ans.

Ans. To find unknown frequency subtract the sum of known frequencies from the sum of total frequencies. Here it is given that the sum of frequencies is 50.

and the known frequencies are 5,7,10,8 and 6.

Sum of known frequency= 5+7+10+8+6=36

Unknown Frequency = Total Frequency-Sum of Known Frequencies =50 – 36=14.

Therefore, the missing frequency is 14.

Ans. Spatial Classification:

In spatial classification, data are classified according to geographical areas.

Example: State wise classification of production of food grains in India: State Production of food grains (in tonnes)

(ii) Chronological classification.

In this type of classification, the data are classified according to different time periods.

Example: Population of India for different time periods.

Profits of a business establishment over different years.

Ans. As per the question, year 2006 to 2011 and their respective profits are given Here, we take profit on the Y- axis and year on the X-axis. Before plotting the graph, we take a false baseline because the profit starts from 60 and there are very small fluctuations in the remaining values of profit, so we take a false base of 50 and then we take the scale as 1 cm = 5 (in thousands). The time series graph of given annual profit figures is shown below:

Ans. From the information given in the question, we have

Total participants = 80

Number of students = 60

Number of servants = 6

Number of teaching staff = 80 – (60 + 6) = 14

It is given that the number of female teaching staff = 1

Number of male teaching staff = 14 – 1 = 13

It is also given that the number of females is 20% of the total.

Therefore, total number of females = 80  x 20% = (80 x 20) 100 = 16.

Number of female students = 16 – 1 = 15 (since no. of female teaching staff is 1, we deduct that from the total no. of females to get the no. of female students).

Total contribution = 80 x 15.50 = Rs. 1240

Contribution from students = 60 x 16 = Rs. 960

Contribution from teaching staff = 1240 – 960 = Rs. 280

Contribution per head from teaching staff = 280/14 = Rs. 20

Now, this information can be tabulated as below

Ans. There are two sources of Collection of data:

i. Primary source: Primary source of data implies Collection of data from its source of origin. It offers you first hand quantitative information relating to your statistical study.

ii. Secondary Source: It implies Collection of data from some agency or institution which already happens to have collected the data through statistical survey. It does not offer you first hand information relating to your statistical study. You are to rely on the information which is already existing.

Ans. First, we are required to calculate the percentage of regular players.

Calculation of Percentage of Regular Players:

Denoting mid value of age as X and percentage of regular players as Y.

– Therefore, Karl Pearson’s coefficient of correlation between age and playing habits is -0.90.

– Interpretation of

1. It indicates that there is a high degree of negative correlation between age and playing habits.

2. It indicates that as age increases, the tendency to play decreases.

Ans.

Ans.

Ans. c) to right on another supply curve

Ans. c) They have alternate uses

Ans. d) Monopolistic competition

Ans. c) Never

Ans. a)₹ 60

Ans. b) Both A and R are true but R is not the correct explanation of A.

Ans. d) All of these

Ans. c) Yes

Ans. a) a rectangular hyperbola

Ans. b) Both ii and iii

Ans.

PPC is shown below:

Ans. Normative statement- it deals with a situation as it ‘What ought to be’.

Ans. Positive statement- it deals with a real life situation, justifiable by facts.

Ans. A perfectly competitive market is dominated by a very large number of buyers and sellers of a commodity. This means that there is no such buyer who can influence the market price on its own by changing his individual demand. Further the number of sellers is so large that no individual firm owns the control over the market price of the commodity. Thus, firms have no role to play other than supplying the required output at the existing market price and therefore a firm is a price taker and not a price maker. Thus we can conclude that each buyer/seller in perfect competition has to accept the price as prevailing in the market.

Ans. Individual Demand: It refers to the quantities of a particular commodity that a consumer is willing to purchase at different possible prices.

Market Demand: It refers to the aggregate (total) demand for all the consumers in the market at different prices. The factors affecting demand for a commodity are as follows:

i. Price of a given commodity,

ii. Price of other goods,

iii. Income of the consumer,

iv. Consumer’s tastes and preferences,

v. Expectation of change in the price in future.

Ans. Constant price means AR is constant. If AR is constant, AR = MR. Both AR and MR are, therefore, indicated by a horizontal straight line, parallel to X-axis. When the law of variable proportions is operative, the MC curve tends to be U-shaped. MC tends to decline corresponding to increasing returns, and it tends to rise corresponding to diminishing returns.

As a producer, I will strike my equilibrium at a point when:

(i) MR = MC, and (ii) MC is rising.

I may face two situations:

(i) MR > MC, and (ii) MR < MC.

For me, MR is constant in both situations so I will have to adjust my output. So the equality between MR and MC will be achieved only through changes in MC. In situation 1, when MR > MC:

I would like to increase the level of output. This would cause an increase in MC. The process of increasing output is to be continued till MR = MC. In situation 2, when MR < MC:

I would like to decrease the level of output. This would cause a decrease in MC. The process of decreasing output is to be continued till MR = MC.

Ans. Producer’s Equilibrium: Equilibrium refers to a state of rest when no change is required. A firm (producer) is said to be in equilibrium when it has no inclination to expand or to contract its output. This state either reflects maximum profits or minimum losses. A producer strikes his equilibrium when two conditions are satisfied:

i. MR = MC, and

ii. MC is greater than MR after the MC = MR output level. MR = MC in two situations:

i. when 2 units of output are produced, and

ii. when 4 units of output are produced.

However, while in situation 1 (i.e. when output = 2 units) MC is falling, while in situation 2 (when output = 4 units) MC is rising. We know that a producer will strike his equilibrium only when MC is rising. Implying that the equilibrium will be struck when 4 units of output are produced, not then 2 units of output are produced.

Ans. Let other things being constant, the consumer will be in equilibrium when MU_A/P_A= MU_B/P_B

Now, suppose price of good B, i.e., P_B falls. The situation changes. The consumer is no longer on equality with respective prices of the two goods P_A and P_B. Other things remain in equilibrium, the above equality turns into an inequality :  MU_A/P_A> MU_B/P_B  

It means that per rupee MU from consumption of B is greater than the consumption of A. This induce the consumer to buy more of B and less of A. The consumer transfers expenditure from A to B.

Ans.

Ans. It is true that measure of price elasticity of demand for a normal goods carrier minus sign because there is an inverse relationship between Price and Quantity. Whereas, there is a positive relationship between price and quantity supplied. Therefore, price elasticity of supply carries plus sign.

Ans. Yes, we agree with the given statement. The elasticity of demand is high in the case of goods with close substitutes (for example, tea has its substitute in coffee). The availability of close substitutes makes it possible for the consumer to switch from one commodity (like tea) to the other (like coffee) in response to a change in the relative price structure. Accordingly, the elasticity of demand is high.