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ARIHANT PRAKASHAN (School Division Series), , © Publisher, No part of this publication may be re-produced, stored in a retrieval system or by any, means, electronic, mechanical, photocopying, recording, scanning, web or otherwise, without the written permission of the publisher. Arihant has obtained all the information, in this book from the sources believed to be reliable and true. However, Arihant or its, editors or authors or illustrators don’t take any responsibility for the absolute accuracy of, any information published and the damage or loss suffered thereupon., , All disputes subject to Meerut (UP) jurisdiction only., Administrative & Production Offices, Regd. Office, ‘Ramchhaya’ 4577/15, Agarwal Road, Darya Ganj, New Delhi -110002, Tele: 011- 47630600, 43518550, , Head Office, Kalindi, TP Nagar, Meerut (UP) - 250002, Tel: 0121-7156203, 7156204, , Sales & Support Offices, Agra, Ahmedabad, Bengaluru, Bareilly, Chennai, Delhi, Guwahati,, Hyderabad, Jaipur, Jhansi, Kolkata, Lucknow, Nagpur & Pune., , ISBN : 978-93-25793-70-5, PO No : TXT-XX-XXXXXXX-X-XX, Published by Arihant Publications (India) Ltd., For further information about the books published by Arihant, log on to, www.arihantbooks.com or e-mail at [email protected], Follow us on, , CBSE, New Pattern

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Contents, PART A, Chapter, Introduction to Economics and Statistics, , -, , Chapter, Collection of Data, , -, , Chapter, Organisation of Data, , -, , Chapter, Presentation of Data, , -, , Chapter, Measures of Central Tendency, , -, , PART B, Chapter, Economics, Economy and Its Central Problems, , -, , Chapter, Consumer s Equilibrium, , -, , Chapter, Demand and Price Elasticity of Demand, , -, , Practice Papers, , -, , CBSE, New Pattern, , -

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Syllabus, Units, , Theory :, , Marks, , Time :, , Minutes, , Marks, , PART A STATISTICS FOR ECONOMICS, ., , Introduction, , ., , Collection, Organisation and Presentation of Data, , ., , Statistical Tools and Interpretation Arithmetic Mean, Median and Mode, Sub Total, , PART B INTRODUCTORY MICROECONOMICS, ., , Introduction, , ., , Consumer s Equilibrium and Demand, Sub Total, Total, , PART C PROJECT WORK Part, , :, , Marks, , Students would prepare only ONE project in the entire academic session, which is divided into, terms i.e. Term I and Term II., , PART A STATISTICS FOR ECONOMICS, UNIT -, , Introduction, What is Economics, Meaning, scope, functions and importance of statistics in Economics, , UNIT -, , Collection, Organisation and Presentation of data, Collection of data - sources of data - primary and secondary; how basic data is, collected with concepts of Sampling; methods of collecting data; some important, sources of secondary data: Census of India and National Sample Survey Organisation., Organisation of Data: Meaning and types of variables; Frequency Distribution., Presentation of Data: Tabular Presentation and Diagrammatic Presentation of Data:, i Geometric forms bar diagrams and pie diagrams , ii Frequency diagrams, histogram, polygon and Ogive and iii Arithmetic line graphs time series graph ., , CBSE, New Pattern

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UNIT -, , Statistical Tools and Interpretation, Measures of Central Tendency -Arithmetic mean, median and mode, , PART B INTRODUCTORY MICROECONOMICS, UNIT -, , Introduction, Meaning of microeconomics and macroeconomics; positive and normative, economics, What is an economy Central problems of an economy: what, how and for whom to, produce; opportunity cost., , UNIT -, , Consumer s Equilibrium and Demand, Consumer s equilibrium - meaning of utility, marginal utility, law of diminishing, marginal utility, conditions of consumer s equilibrium using marginal utility analysis., Indifference curve analysis of consumer s equilibrium-the consumer s budget, budget set and budget line , preferences of the consumer indifference curve,, indifference map and conditions of consumer s equilibrium., Demand, market demand, determinants of demand, demand schedule, demand, curve and its slope, movement along and shifts in the demand curve; price elasticity, of demand - factors affecting price elasticity of demand; measurement of price, elasticity of demand percentage-change method., , PART C PROJECT IN ECONOMICS, Guidelines as given in class XII curriculum, , Syllabus (Rationalised), PART B: INTRODUCTORY MICROECONOMICS, Unit-4: Introduction, l, , Concepts of Production possibility frontier, , CBSE, New Pattern

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03, , CBSE New Pattern ~ Economics XI (Term I), , 01, Introduction to, Economics and Statistics, Quick Revision, 1. Definition of Economics According to, Alfred Marshall, “Economics is the study of, mankind in the ordinary business of life. It, examines that part of individual and social, action which is most intimately connected, with attainment and use of material requisities, of well-being.”, According to Professor Paul A Samuelson,, “Economics is the study of how men and society, choose to employ scarce resources that could, have alternative uses in order to produce, various commodities overtime and distribute, them for consumption now and in future, amongst various persons and groups in society.”, 2. Concept of Statistics It basically means, quantitative information, i.e. information, which can be expressed in numbers and it also, deals with methods or techniques relating to, the collection, classification, presentation and, interpretation of data. Statistics is used in two, senses, namely plural sense and singular sense., 3. Statistics in Plural Sense In plural sense, the, word statistics refers to numerical facts and, figures collected in a systematic manner with a, definite purpose in any field of study., According to Bowley, “Statistics are, numerical statements of facts in any, department of enquiry placed in relation to, each other.”, , The characteristics of statistics in plural sense, are as follows, (i), (ii), (iii), (iv), (v), (vi), (vii), , Aggregate of facts, Numerically expressed, Affected by multiplicity of causes, Reasonable degree of accuracy, Collected in a systematic manner, Pre-determined purpose, Placed in relation to each other, , 4. Statistics in Singular Sense In singular sense,, it refers to the science comprising of methods, which are used in collection, analysis,, interpretation and presentation of numerical, data. These methods are used to draw, conclusions about the population parameter., According to Croxton and Cowden,, “Statistics may be defined as the collection,, presentation, analysis and interpretation of, numerical data.”, The stages of statistics in singular sense which, are enumerated below, (i), (ii), (iii), (iv), (v), , Collection of data, Organisation of data, Presentation of data, Analysis of data, Interpretation of data, , 5. Scope of Statistics According to Tippet,, “Statistics affects everybody and touches life, at many points.”

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04, , CBSE New Pattern ~ Economics XI (Term I), , Important areas of its scope are as follows, (i), (ii), (iii), (iv), , Statistics in planning, Statistics in business and management, Statistics in industry, Statistics in economics, , (iv), , 6. Functions of Statistics, (i) It expresses facts relating to different, phenomena in numbers., (ii) It presents complex data in a simple form so, that it becomes easy to comprehend., (iii) It enlarges an individual’s knowledge,, experience and power of reasoning., (iv) It compares the data relating to facts., (v) It facilitates policy formulations., , 7. Importance of Statistics in Economics, (i) Understanding Economic Problems, Statistics helps an economist to understand, an economic problem through its, quantitative expression., (ii) Working out Cause and Effect, Relationship Statistics helps economists to, find out cause and effect relationship, between different sets of data.When the, causes of the problem are identified, it is, easier to formulate certain policies to, tackle it., (iii) Construction of Economic Theories or, Economic Models Statistics is used in, finding relationship between different, economic factors., , (v), , (vi), , (vii), , An economist may be interested in finding, out what happens to the demand for a, commodity when its price increases or, decreases., Economic Forecasting The data provided, by statistics, helps an economist to forecast, about future trends and accordingly make, changes in plans and policies., Formulation of Policies Statistics helps in, the formulation of policies by providing, necessary data., Presenting Facts in Definite Form, Statistics helps in exact and definite, presentation of facts and removes confusion, and uncertainty., Condensing Elaborate Data in a Concise, Form Statistics helps in summarising lengthy, and elaborated economics data in a concise, form with the help of statistical tools of, central tendency such as mean, median, etc., , 8. Limitations of Statistics, (i) It is a study of numerical facts only., (ii) It is a study of aggregates only., (iii) Homogeneity of data is an essential, requirement in statistics., (iv) Statistical results are true only on, an average., (v) Without reference statistical, results may, prove to be wrong., (vi) Statistics can be used only by the experts.

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05, , CBSE New Pattern ~ Economics XI (Term I), , Objective Questions, Multiple Choice Questions, 1. Wealth definition of Economics was, given by, (a), (b), (c), (d), , given below., , 3. Welfare definition of Economics was, given by, Prof. Adam Smith, Prof. Alfred Marshall, Prof. Lionel Robbins, Prof. Samuelson, , resource scarcity, unlimited human wants, resources can be put to various uses, All of the above, , 5. The word Economics is derived from, ……… words., (b) English, (d) None of these, , 6. An economic agent who works to earn, wages to buy various goods and, services is called ……… ., consumer, producer, service provider, service holder, , (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 9. If a farmer produces for selfconsumption, then this activity will be, called as ……… ., (a), (b), (c), (d), , an Economic activity, a Non-economic activity, a Self-sufficient activity, None of the above, , Column I, , problems arises due to ……… ., , (a), (b), (c), (d), , referred to as economic activity., Choose the most appropriate option, from below for the given statement., , 10. Choose the correct pair from given below., , 4. According to Prof. Robbins, economic, , (a) Latin, (c) Greek, , (b) Service receiver, (d) Consumer, , 8. All activities which involve money is, , (a) Economics and statistics goes hand in, hand., (b) Economic laws are validated by statistical, information., (c) Government needs statistical information, for making fiscal policies., (d) All of the above are correct statement, , (a), (b), (c), (d), , produces various goods and services to, maximise profits., (a) Service provider, (c) Producer, , Prof. Adam Smith, Prof. Alfred Marshall, Prof. Lionel Robbins, Prof. Samuelson, , 2. Choose the correct statement from the, , (a), (b), (c), (d), , 7. ……… is an economic agent who, , Column II, , A. Resources, , (i) Scarcity, , B. Human wants, , (ii) Limited, , C. Human needs, , (iii) Non-recurring, in nature, , D. Natural resources, , (iv) Limited use, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) All of the above pairs are correct, , 11. Non-economic activities are one which, uses scarce productive resources., Choose the most appropriate option, from below for the given statement., (a) True, (b) False, (c) Partially true, (d) Incomplete statement

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06, , CBSE New Pattern ~ Economics XI (Term I), , 12. Identify the activity which is not done, with the motive of earning livelihood, from the given below., (a) Blood donation camp, (b) Free meal distribution during nationwide, Covid-19 lockdowns, (c) Visiting an orphanage to distribute cloths, (d) All of the above, , 13. Choose the incorrect pair from the, given below., Column I, , Column II, , A. Scarcity Definition, of Economics, , (i) Prof. Lionel, Robbins, , B. Growth Oriented, Definition of, Economics, , (ii) Prof. Paul, Sweezy, , C. Welfare Definition, of Economics, , (iii) Prof. Alfred, Marshall, , D. Economics is the, Science of the, Wealth of the Nation, , (iv) Prof. Adam, Smith, , Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) D – (iv), , 14. An economic agent who consumes a, good to maximise satisfaction is known, as a ……… ., (a), (b), (c), (d), , Consumer, Producer, Service provider, Service holder, , 15. An economic activity which involves, addition to the stock of capital is, known as, (a) Consumption, (c) Investment, , (b) Production, (d) None of these, , 16. Statistics is defined in ……… ways., (a) two, (c) four, , (b) three, (d) infinite, , 17. Services produced for self-consumption, are an act of non-market economic, activities. Choose the most appropriate, option from given below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 18. Economic activities never involve the, use of money. Choose the most, appropriate option from below for the, given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 19. A teacher teaching his own child is a, ………… activity., (a) economic, (c) market, , (b) non-economic, (d) None of these, , 20. ……… is an economic branch related, to the study of an individual economic, entity., (a) Statistics, (c) Macroeconomics, , (b) Microeconomics, (d) Both (a) and (b), , 21. Economics is considered as, (i) Positive Statement, (ii) Normative Statement, (iii) Science, (iv) Art, Choose from the options below., (a), (b), (c), (d), , (i), (ii) and (iii), (ii), (iii) and (iv), (i), (iii) and (iv), (i), (ii), (iii) and (iv), , 22. Statistics is derived from a Latin word, ‘Status’ which means ……… ., (a), (b), (c), (d), , data, political state, quantitative information, All of the above

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07, , CBSE New Pattern ~ Economics XI (Term I), , 23. Which of the following is/are true, about statistics?, (a) Statistics are collected in a systematic, manner, (b) Statistics are numerically expressed, (c) Statistics is aggregate of facts, (d) All of the above are true, , 24. ……… refers to the study based upon, observations or experimentations., (a), (b), (c), (d), , Empirical analysis, Quantitative analysis, Qualitative analysis, None of the above, , Statistics can be defined?, (b) Plural sense, (d) Neither (a) nor (b), , 26. Choose the correct option about, Statistics in plural sense., (a), (b), (c), (d), , Descriptive in nature, Inductive in nature, Statistical data, None of the above, , 27. Choose the correct options from the, given below., (a) Statistics in singular sense is a series of, collection, organisation, presentation,, analysis and interpretation of data., (b) Statistics in singular sense means, collection of numerical data., (c) Statistics in plural sense is a series of, collection, organisation and interpretation, of data., (d) Statistics in plural sense is collection of, numerical data., , 28. ‘Viaan has a long bat’. This statement is, ……… ., (a), (b), (c), (d), , methods by which conclusions are, drawn relating to the population on the, basis of a given sample., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 30. Statistics can be best used by ……… ., , 25. In which of the following ways,, (a) Singular sense, (c) Both (a) and (b), , 29. Inferential Statistics refers to the, , quantitative statement, qualitative statement, statistical statement, None of the above, , (a), (b), (c), (d), , experts, general people, economists, All of the above, , 31. Students of class XI do not pay much, importance in studies. This statement is, a statistical information., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 32. Collection of quantitative facts is a, part of which of the following, definitions of economics?, (a), (b), (c), (d), , Singular, Plural, Both (a) and (b), None of the above, , 33. Descriptive statistics refers to, information in terms of numerical data., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement

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08, , CBSE New Pattern ~ Economics XI (Term I), , 34. Choose the correct pair from given, below., Column I, A. Collection, of data, , Column II, (i) First method of, statistical enquiry, , B. Statical, methods, , (ii) Do not study the, qualitative, phenomena’s, , C. Statistical, results, , (iii) Affected by, multiplicity of causes, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) All of the above pairs are correct, , 35. Statistics deals with ……… data., (a), (b), (c), (d), , quantitative, qualitative, Both quantitative and qualitative, Neither quantitative nor qualitative, , 36. An individual number is not Statistics., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 37. Statistics should be placed in relation to, each other. Choose the most, appropriate option from below for the, given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 38. Which of the following is/are, function(s) of Statistics?, (i) Simplification of facts, (ii) Setting and analysis of hypothesis, (iii) Enhances human knowledge, , Choose from the options below., (a), (b), (c), (d), , (i) and (ii), (ii) and (iii), (i) and (iii), (i), (ii) and (iii), , 39. Collection of secondary data is the, primary step of statistics., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 40. Any statistical information collected, without a definite objective is known as, a number., Choose the most appropriate option, from below for the given statement., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 41. Choose the correct option from the, given below., (a) Statistics deals with individual facts., (b) Statistical results are correct only on an, average., (c) Statistics deals with quantitative, facts only., (d) Both (b) and (c), , 42. Statistics is a useful instrument for, (a), (b), (c), (d), , policy makers, economic laws, businesses, All of the above, , 43. Which of the following is the third, method of statistics in an enquiry?, (a) Collection of data, (b) Organisation of data, (c) Presentation of data, (d) Analysis of data

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09, , CBSE New Pattern ~ Economics XI (Term I), , 44. Statistical enquiry does not comprise, of which of the following?, (a), (b), (c), (d), , Study of numbers, Study of qualitative facts, Study of individual quantitative facts, None of the above, , 45. Distrust of statistics is because of, (a), (b), (c), (d), , limitation of statistics, misuse of statistics, insufficient statistical methods, scope of statistics is limited, , Assertion-Reasoning MCQs, Direction (Q.Nos. 46 to 49) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 46. Assertion (A) Scarcity of resources is a, major cause of all economic problems, in a country., Reason (R) Human wants are unlimited, while the resources have alternative uses, as well., , 47. Assertion (A) Welfare definition of, economics only considers human needs, to satisfy wants., Reason (R) The means to fulfill human, wants are limited in relation to the needs., , 48. Assertion (A) Economic activity always, involves buying and selling of a good or, services in the market to earn profits., Reason (R) Any act of production of, goods for self-consumption is a, non-economic activity., , 49. Assertion (A) Heterogeneous data in, statistics should be placed in relation to, each other., Reason (R) A quantitative fact is not, statistics unless it is comparable., , Case Based MCQs, Direction Read the following case study, and answer questions 50 to 54 on the, basis of the same., Statistics in plural sense refers to collection of, numerical facts where as in singular sense, it, refers to all statistical methods. Statistics plays, an important role in economic policies as well, as in economics laws like law of demand, law, of supply., Government uses various statistical, information related to macroeconomics issues, like poverty, unemployment, etc. However, it, is open to criticism as it does not deal with, individual facts and results are true only on an, average. Various tools are used to analyse, different components like central tendency,, measures of variation, correlation and index, numbers., , 50. Arrange the following stages of Statistics, (i) Organisation, (ii) Collection, (iii) Interpretation (iv) Presentation, (v) Analysis, , Choose from the options below, (a), (b), (c), (d), , (i), (iii), (ii), (v) and (iv), (iii), (ii), (i), (iv) and (v), (ii), (i), (iv), (v) and (iii), (iv), (v), (iii), (ii) and (i), , 51. Which of the following is/are, limitations of Statistics?, (a) Statistics can lead to misleading, conclusion., (b) Statistical data should be homogeneous., (c) Statistics simply is one of the methods of, studying a phenomenon., (d) All of the above

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10, , CBSE New Pattern ~ Economics XI (Term I), , 52. Assertion (A) Statistical results are, correct only on an average due to the, presence of personal bias., Reason (R) Statistics helps in enhancing, human knowledge by using its method, of interpretation of primary data., 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, , 53. Government uses statistical information, for ……… ., (a) making macroeconomic policies, (b) maintaining law and order, (c) administration, (d) All of the above, , 54. Which of the following tools are used in, Statistics for analysis of data?, (a) Averages, (c) Correction, , (b) Regression, (d) All of these, , Direction Read the following case study, and answer questions 55 to 59 on the, basis of the same., Economics is derived from Greek words and, used to be studied as a part of political, system. Later, the importance of statistics was, realised and studied as a separate discipline., On the other hand, statistics is derived from, Latin word and gained its importance from its, very beginning. Statistics is a different subject, but has its importance in almost all, disciplines. Economics and statistics are two, inter-related subjects. Economic policies are, formed with the help of statistical, information, also the validity of economic, theories are proved by statistical methods of, interpretation. In all, it can be said that, economics cannot work in isolation without, statistics., , 55. Statistics always deals with ………, data., (a), (b), (c), (d), , homogeneous, heterogeneous, Both (a) and (b), Neither (a) nor (b), , 56. Which of the following activities can be, considered as economic activities?, (a), (b), (c), (d), , Production, Investment, Consumption, All of the above, , 57. Choose the correct statement from, given below., (a) The word ‘Economics’ means household, management., (b) Statistics only deals with quantitative facts., (c) Non-economic activities do not involve use, of money., (d) Interpretation of data comes after analysis, of data., , 58. Which of the following is not a, limitation of statistics?, (a) It only deals with aggregate of facts., (b) It’s results can be misleading., (c) It is not capable for further mathematical, treatment., (d) It’s results can be proven incorrect without, reference., , 59. Assertion (A) Economics has no, importance when studied in isolation of, statistics., Reason (R) Validity of economic laws, depends upon the empirical evidences., 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 false, but Reason (R) is true, (d) Both are false

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11, , CBSE New Pattern ~ Economics XI (Term I), , ANSWERS, Multiple Choice Questions, 1. (a), 11. (b), 21. (d), , 2. (d), 12. (d), 22. (b), , 3. (b), 13. (b), 23. (d), , 4. (d), 14. (a), 24. (a), , 5. (c), 15. (c), 25. (c), , 6. (c), 16. (a), 26. (d), , 7. (c), 17. (b), 27. (b), , 8. (b), 18. (b), 28. (b), , 9. (a), 19. (b), 29. (a), , 10. (a), 20. (b), 30. (a), , 31. (b), 41. (b), , 32. (c), 42. (d), , 33. (a), 43. (c), , 34. (d), 44. (c), , 35. (c), 45. (b), , 36. (a), , 37. (a), , 38. (d), , 39. (c), , 40. (a), , 54. (d), , 55. (a), , 56. (d), , 57. (a), , 58. (c), , 59. (a), , Assertion-Reasoning MCQs, 46. (a), , 47. (b), , 48. (d), , 49. (c), , 52. (b), , 53. (d), , Case Based MCQs, 50. (c), , 51. (d), , EXPLANATIONS, 1. Wealth definition of Economics was given by, Prof. Adam Smith in his famous book known as, “Wealth of the Nation”., , 2. Statistics plays a major role in the Economics, laws and theories as well as to the government, as, without statistical information/evidence, one, cannot conclude a law., , 3. The second most important definition of, Economics was given by Prof. Alfred Marshall,, who defined Economics from welfare point of, view., , 4. The root cause of all economic problems is, scarcity of resources along with never ending, human wants., , 5. Economics is derived from two Greek words, which means household management., , 6. There are four factors of production in general, i.e., land, labour, capital and entrepreneur. All, these factors render their factor services and, receives compensation in return., , 8. A mere involvement of money does not make, an activity economic unless it is done with the, motive of earning livelihood as non-economic, activities may also involve use of money., , 9. Any activity which is done for earning, livelihood is an economic activity., In the above case the farmer is producing for, self- consumption so, it is an act of earning, livelihood without selling in the market., , 10. All resources are scarce in relation to the, needs of human which are not only unlimited, but also continuous., , 11. Economic activities use the scarce productive, resources to earn a living by human being., Non-economic activities are done out of, emotional values., , 16. Statistics is defined in two ways/sense i.e.,, singular sense and plural sense., , 17. Services produced for self-consumption are, non-economic activities as their market value, cannot be determined., , 18. Economic activities are done with the motive, of earning, spending, investment, etc. which, involve use of money., 19. It is a non-economic activity as such activities are, done out of love, care, affection etc, thus, their, market value cannot be determined., 20. Microeconomics is the branch of economics, which studies the problems related to an, individual, rest of the two given above deals with, aggregates., 21. Economics is not only a science as its laws are, empirically verified but also an art as various, forms of arts are used in its study. Also, all, economic statements are either true (positive, statement) or passes value judgement, (normative statement)., , 22. Statistics is derived from a Latin word which, stands for political state and later used to, represent quantitative data.

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12, , CBSE New Pattern ~ Economics XI (Term I), , 23. All of the above options are the characteristics, of statistics in singular sense., , 24. Empirical analysis is the study of variables, based upon actual information/data to arrive at, a conclusion., , 25. Statistics is defined in both singular and plural, sense. The former is in broader sense while the, later is in narrower sense., , 26. Statistics in plural sense means the collection of, numerical or quantitative data., , 27. Statistics in singular sense is a narrow, definition which only considers one statistical, method i.e., collection of data., , 28. The above example does not give any, information in quantitative sense and thus,, cannot be considered as a statistic., , 29. Above is a type of statistical study where, samples are drawn for statistical enquiry., , 30. Statistics methods can only be used properly, by the one who has knowledge of the statistics., , 31. The above statement is just a qualitative, information and don’t have any quantitative, facts thus, not considered as statistics., , 33. Descriptive statistics is an enquiry of statistical, methods which involves collection of data., , 35. Statistics deals with both quantitative and, qualitative data, while qualitative facts need to, have numerical evidence to be considered as, statistics., , 36. Statistics is aggregate of facts thus no individual, number is considered as statistics., , 37. Homogeneous data i.e., data with similar, attributes are placed together to make the data, understandable and comparable., , 39. The most important function of statistics is to, collect primary data i.e., data collected for the, first time., , 40. Statistics is collected for a pre-determined, objective i.e., any information which is, collected without an objective is just a number, and not statistics., , 41. Statistical results are not always correct, they, are correct only on an average., , 42. Statistical information is not only used by, statisticians but also used in various spares of, life which includes policy makers, government, organisations etc., , 44. No individual number is considered as statistics, as it is not capable of comparison and further, analysis., , 45. Statistics can be best used by the ones who, have knowledge about it, otherwise the results, could be mis-leading or mis-used for own, benefits., , 46. Economic problems of any country arise due to, the same problem of scarcity of resources in, relation to the human wants which are unlimited., , 47. Welfare definition focuses upon the, maximisation of the welfare of the society by, satisfying human wants considering the means, to achieve it., , 48. Economic activities doesn’t only include, market activities, but also includes non-market, activities which are done for self-consumption., , 49. Heterogeneous data i.e., data with different, characteristics are placed in different groups, based upon their attributes., Homogeneous data is placed together in same, groups., , 52. Statistical results are not always correct, they, are only correct on an average and can be, compared when in a group., , 53. Statistical information plays a major role for, the government to not only maintain fiscal, discipline but also making various policies to, deal with problems like unemployment,, poverty etc., , 55. Statistics can only deal with homogeneous, data, data with different attributes are, non-comparable., , 57. The actual meaning of the Economics is, derived from two Greek words which stands, for household management., , 58. A good statistic is the one which is capable of, further mathematical analysis as for this, purpose only quantitative data are collected., , 59. Statistics is an integral part of economic laws,, without statistical support economic laws, cannot be proven.

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13, , CBSE New Pattern ~ Economics XI (Term I), , 02, Collection of Data, Quick Revision, 1. Data Data is a collection of facts and, measurements. Data can be classified as, quantitative data and qualitative data, which are, explained below, (i) Quantitative Data Data whose variables can, be measured in numerical terms are known as, quantitative data. e.g. prices, income, height,, weight, daily temperature, etc., (ii) Qualitative Data Data whose variables, cannot be expressed in numerical terms are, known as qualitative data. e.g. good, bad,, intelligence, etc., 2. Sources of Data Following are the sources of, data, (i) Primary Source of Data It refers to, collection of data, direct from its source of, origin. The data collected from these sources, is referred to as primary data., This is the original form of data which is, collected for the first time., (ii) Secondary Source of Data It refers to, collection of data by some agency which, already collected the data and processed, (classified and tabulated) it. The data, collected from these sources is referred to as, secondary data., Secondary data can be obtained from, published sources such as government, reports, documents, newspapers, books, written by economists, etc., , 3. Collection of Primary Data The methods of, collection of primary data are given below, (i) Personal Interview In this method, the, researcher or investigator conducts, interviews with the respondents. Following, types of interviews can be conducted, (a) Direct Personal Interview In this, method, the investigator conducts face to, face interviews with the respondents., (b) Indirect Personal Interview In this, method, the investigator conducts, interview with third persons who are, directly or indirectly concerned with, subject matter of enquiry., (ii) Mailing Questionnaire Under this, method, the data is collected by mail. The, questionnaire is sent to each individual by, mail with a request to complete and return it, by a given date., (iii) Telephone Interviews In a telephone, interview, the investigator asks questions over, the telephone., (iv) Schedule Filled by Enumerators In this, method, the enumerators asks questions and, record the replies of the respondents, themselves on a schedule., (v) Information from Correspondents In this, method, local agents and correspondents are, appointed in different areas of field enquiry, who sent information to the investigator.

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14, , CBSE New Pattern ~ Economics XI (Term I), , 4. Collection of Secondary Data Secondary data, can be collected from published sources and, unpublished sources, (i) Published Sources The following are some, of the published sources of secondary data, (a) Government publications, such as labour, gazette, statistical abstract of India, etc., (b) Semi-government publications., (c) Reports of committees and commissions., (d) Publications of trade associations., (e) Publications of research institutions., (f) Publications of research scholars., (g) International publications., (h) Journals and papers., (ii) Unpublished Sources The data collected, from government organisations or others,, which is not published is also a source of, secondary data., 5. Census of India It provides the most complete, and continuous demographic record of, population of India. The census is being, regularly conducted every ten years since 1881., The first census of independent India was, conducted in 1951., The census officials collect information on, various aspects of population such as the, density, sex-ratio, literacy, migration,, rural-urban distribution, etc., 6. National Sample Survey Organisation It was, established by the Government of India to, conduct nation wide survey on socio-economic, issues., , The data collected by NSSO are released, through reports and its quarterly journal, Sarvekshana. The NSSO also collects details of, industrial activities and retail prices for various, goods. They are used by the government for, planning purpose., 7. Census and Sample Surveys There are two, methods of collecting data on the basis of, population covered, (i) Census Survey A survey that includes all, units of population under consideration is, known as census or method of complete, enumeration., (ii) Sample Survey In a sample survey, a, subset of the population is taken. It is, confined to only limited group of people and, is based upon their respective opinions., The first task in selecting a sample is to, identify the population., 8. Methods of Sampling The methods of, sampling are as follows, (i) Random Sampling It is the method, where, the individual units from the population are, selected at random., In random sampling, every individual has, an equal chance of being selected., (ii) Non-random Sampling In this method, all, the units of the population do not have an, equal chance of being selected and, convenience or judgement of the, investigator plays an important role in, selection of the sample.

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15, , CBSE New Pattern ~ Economics XI (Term I), , Objective Questions, Multiple Choice Questions, 1. Data collected by the investigator, himself from the source is known as, (a), (b), (c), (d), , Primary source of data, Secondary source of data, Both (a) and (b), None of the above, , 2. A person responsible for conducting, statistical enquiry is known as ……… ., (a) Informant, (c) Enumerator, , (b) Respondent, (d) Investigator, , 3. ……… is a method of gathering, , 9. What kind of data is contained in the, census of population and national, income estimates, for the government?, (a) Internal, (c) Secondary, , (b) Primary, (d) Both (b) and (c), , 10. Which of the following is not an, example of internal source of data?, (a), (b), (c), (d), , Profit and loss statement of a company, Total sales of a company, Data collected by NSSO, All of the above, , 11. Which of the following sources of data, , information from the respondents., , has greater degree of accuracy?, , (a) Survey, (c) Information, , (a), (b), (c), (d), , (b) Sample, (d) None of these, , 4. A person who is trained to collect, information from the source is known as, (a) Respondent, (c) Investigator, , (b) Enumerator, (d) None of these, , 5. Which of the following are the sources, of collecting quantitative data?, (a) Internal Sources, (c) Both (a) and (b), , (b) External Sources, (d) Neither (a) nor (b), , 6. ……… is known as second hand data., (a) Sample data, (c) Secondary data, , (b) Primary data, (d) None of these, , 7. Which of the following is a source of, collecting secondary data?, (a) Published, (c) Both (a) and (b), , (b) Unpublished, (d) Neither (a) nor (b), , 8. According to ………, if a random, sample of adequate size is selected from, a large population, it tends to possess, the same attributes as of the population., (a), (b), (c), (d), , law of statistical regularity, law of sampling, law of census, None of the above, , Internal source, External source, Both (a) and (b), Neither (a) nor (b), , 12. Data collected from a local newspaper, is an example of primary data., Choose the most appropriate option, from the given below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 13. ……… refers to an investigation on a, topic by an agency to collect relevant, quantitative information., (a) Statistics data, (c) Investigation, , (b) Statistical enquiry, (d) All of these, , 14. Schedules are to be filled by ……… ., (a) respondents, (c) enumerators, , (b) investigators, (d) Any of these, , 15. Which of the following is method of, collecting second hand information?, (a), (b), (c), (d), , Personal interview, Telephonic interview, Mailed questionnaire, None of the above

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16, , CBSE New Pattern ~ Economics XI (Term I), , 16. When the population under study is in, finite, sample survey should be used., Choose the most appropriate option, from the given below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 17. Primary data should be preferred where, less time is available to collect the data., Choose the most appropriate option, from the given below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 18. In every ten-year, government of India, collects information about the, population using ……… method., (a), (b), (c), (d), , census, sample, case study, None of the above, , 19. Which of the following is a limitation of, personal interview?, (a), (b), (c), (d), , Lacks accuracy, Personal prejudices, Not capable of covering wide area, Both (b) and (c), , 20. Which of the following things should be, kept in mind while collecting secondary, data?, (a), (b), (c), (d), , Purpose of study, Reliability of source, Competency of collecting authority, All of the above, , 21. Which of the following is/are method(s), of collecting primary data?, (a), (b), (c), (d), , Direct personal investigation, Indirect oral investigation, Information through local correspondents, All of the above, , 22. Which of the following is/are the, feature(s) of an ideal questionnaire?, (i) Questions should be in MCQ from as, much as possible, (ii) Numerical calculations should be, avoided, (iii) Logical sequence should be followed, (iv) Questions related to religious, political, and personal views should be avoided, Choose from the options below., (a), (b), (c), (d), , (i), (ii) and (iii), (ii), (iii) and (iv), (i), (iii) and (iv), (i), (ii), (iii) and (iv), , 23. Which of the following data types is, known as original data?, (a), (b), (c), (d), , Primary data, Secondary data, Both (a) and (b), Neither (a) nor (b), , 24. To collect information from a group of, an uneducated people, which of the, following method is most suitable?, (a), (b), (c), (d), , Direct personal investigation, Indirect oral investigation, Questionnaire method, All of the above, , 25. Data collected through direct personal, investigation is flexible. Choose the, most appropriate option from given, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete information, , 26. Indirect oral investigation lacks, accuracy., Choose the most appropriate option, from given below., (a) True, (b) False, (c) Partially true, (d) Incomplete information

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17, , CBSE New Pattern ~ Economics XI (Term I), , 27. Which of the following method of, collecting primary data has the widest, reach?, (a), (b), (c), (d), , Direct personal investigation, Telephonic interview, Information from local correspondents, Mailed questionnaire method, , Codes, (a) A –(i), (c) C – (iii), , (b) B – (ii), (d) D – (iv), , 31. Choose the incorrect pair., Column I, A. Statistical error, , (i) Difference between, collected data and, actual values, , B. Primary data, , (ii) First hand, information, , C. Enumerator, , (iii) Person who, conducts a statistical, enquiry, , D. Respondent, , (iv) Targeted population, , 28. Which of the following is/are source(s), of secondary data?, (i) NSSO reports, (ii) BI annual reports, (iii) Unpublished research papers, (iv) Journal and newspapers, Choose from the below options., (a), (b), (c), (d), , (i), (ii) and (iii), (ii), (iii) and (iv), (i), (iii) and (iv), (i), (ii), (iii) and (iv), , 29. More precaution should be kept in, mind while collecting primary data, than secondary data. Choose the most, appropriate option from given below., (a), (b), (c), (d), , True, False, Partially true, Incomplete information, , 30. Choose the incorrect pair from the, options given below., Column I, , Column II, , A. Includes all items of the, universe under study, , (i) Census, method, , B. Includes only specified, items of the universe, under study, , (ii) Sample, method, , C. A set of questions, prepared for collecting, information for, a pre-determined, purpose, , (iii) Schedule, , D. Source of data which, cannot be cent, per cent correct, , (iv) Secondary, data, , Column II, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) D – (iv), , 32. Match the following pairs given below., Column I, , Column II, , A. Indirect oral, investigation, , (i) Investigator prepares, a questionnaire and, send it to the, respondent with a, covering letter, , B. Mailed, questionnaire, method, , (ii) Local agents who are, appointed to supply, information regularly, , C. Personal, investigation, , (iii) Collecting, information from, third parties by the, investigator, , D. Information, from local, sources, , (iv) Investigator collect, information by self, , Codes, A, (a) (i), (b) (ii), (c) (ii), (d) (ii), , B, (ii), (iv), (i), (i), , C, (iv), (i), (iv), (iii), , D, (iii), (iii), (iii), (iv)

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18, , CBSE New Pattern ~ Economics XI (Term I), , 33. Quota sampling is type of ……… ., (a), (b), (c), (d), , judgement sampling, random sampling, non-random sampling, None of the above, , 34. The world is facing the covid, pandemic even now. During its initial, days, government of India conducted, tests of citizens on a frequent interval, to ensure that virus does not spread to, the community. This is an example of, which of the following types of, survey?, (a) Sample survey, (c) Both (a) and (b), , (b) Census survey, (d) Descriptive survey, , 35. Which of the following statistical errors, is/are avoidable?, (a) Sampling, (c) Random, , (b) Non-sampling, (d) All of the above, , 36. Data collected from secondary sources are, (a) collected with the objective different from, the study for which it was primarily used, (b) more reliable as compared to primary, sources, (c) not available in published form, (d) All of the above, , 37. Which of the following methods of, collecting data is most appropriate, when the investigator doesn’t require a, highly accurate data?, (a) Direct personal investigation, (b) Information collected from local, correspondents, (c) Information collected from NSSO data, (d) Questionnaire filled by enumerators, , 38. Which method should be used to, collect data where data is sensitive?, (a) Indirect oral investigation, (b) Information received from local, correspondents, (c) Information from mailed questionnaire, (d) Telephonic conversation, , 39. During the Corona outbreak in India,, the entire country was locked down, initially for 21 days except for essential, services. Different news channels are, reporting from different parts of the, country. This is an example of, (a) indirect oral investigation, (b) information received from local, correspondents, (c) information from government official, source, (d) None of the above, , 40. In the world of changing consumer, presences for various goods and, services, which of the following method, should be used to collect data by the, companies to matchup with the, expectations of people?, (a), (b), (c), (d), , Direct personal investigation, Indirect oral investigation, Information through local correspondents, Any of the above, , 41. The diagnostic centres which collect, blood of a patient to test is an example of, (a) sample method, (c) diagnostic method, , (b) census method, (d) None of these, , 42. Data collected on religion from census, report is an example of ……… ., (a) sample data, (c) secondary data, , (b) primary data, (d) Both (a) and (b), , 43. An investigator can take help of, trained professional to collect which, of the following data?, (a) Internal Data, (c) Secondary Data, , (b) Primary Data, (d) All of these, , 44. Secondary data is available only from, external sources. Choose from the, options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement

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19, , CBSE New Pattern ~ Economics XI (Term I), , 45. Which of the following method is less, time consuming?, (a), (b), (c), (d), , Telephonic interview, Mailed questionnaire, Indirect oral investigation, None of the above, , 46. The method of collecting data which, considers all units of the universe is, known as ……… ., (a) Census method, (c) Both (a) and (b), , (b) Sample method, (d) None of these, , 47. Exit polls are an example of ………, method of collecting data., (a) census, (c) investigation, , (b) sampling, (d) None of these, , 48. Under which of the following method,, population is divided into small groups, and then data is collected at random, from each group?, (a) Stratified sampling (b) Cluster sampling, (c) Judgement sampling (d) None of these, , 49. Lottery method is used under, (a) random sampling, (b) quota sampling, (c) purposive sampling, (d) judgement sampling, , 50. Systematic sampling can also be, referred to as quasi-random sampling., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 51. Which of the following is/are type(s) of, non-random sampling?, (a) Judgement sampling, (b) Convenience sampling, (c) Quota sampling, (d) All of the above, , 52. A company tests few bulbs to predict, about the life span of bulbs, manufactured. It is an example of …… ., (a), (b), (c), (d), , random sampling, judgement sampling, convenience sampling, None of the above, , 53. In random sampling, (a) Cost involved is high, (b) Sample is biased, (c) Each unit has an equal probability of being, selected, (d) All of the above, , 54. Which of the following is/are type(s) of, restricted random sampling method?, (a), (b), (c), (d), , Stratified sampling, Systematic sampling, Multi-stage sampling, All of the above, , 55. Which of the following is/are true, about census method?, (i) Census is suitable in case of both, homogeneous and heterogeneous data, (ii) Census method conducts an extensive, study of population, (iii) Census method is non-economical, (iv) Census method is useful even with vast, area of investigation, Choose from the options below., (a) (i) and (iii), (c) (ii) and (iii), , (b) (ii) and (iv), (d) (iii) and (iv), , Assertion-Reasoning MCQs, Direction (Q.Nos. 56 to 60) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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) Both are false, , 56. Assertion (A) As the sample size, increases, variable tends to become, close to census values., Reason (R) Samples are always, collected from different groups of, heterogeneous data randomly.

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20, , CBSE New Pattern ~ Economics XI (Term I), , 57. Assertion (A) Internal sources of data, are narrow ended., Reason (R) Data primarily collected, within the organisation has limited scope., , 58. Assertion (A) No method of collecting, primary data is free from personal, prejudices., Reason (R) Chances of errors increases, when the investigator is not trained., , 59. Assertion (A) Collection of secondary, data need more efforts than primary, data., Reason (R) Secondary sources of, information are less reliable as, compared to primary sources., , 60. Assertion (A) Census method of, conducting survey includes each and, every item of the universe., Reason (R) Samples are the, representatives of the groups of, homogeneous data., , Case Based MCQs, Direction Read the following case study, and answer questions 61 to 65 on the, basis of the same., ABC Corporation Limited is a company which, produces garments: Mr Viaan, who is the, manager of the company, keeps proper record, of companies cost and revenue statement. In, present time, due to rising competition from, foreign companies as well as changing, consumer’s taste and preferences, it has, become really difficult for Mr Viaan to, maintain ABC Corporation’s profit levels. In, order to withstand foreign competition, Mr, Viaan decided to conduct a survey to know, about changing pattern of consumer’s demand, across country. Also, in order to increase, profits, it is important for the company to, establish itself internationally by matching the, demand of international buyer’s as well., , 61. Mr Viaan keeps proper record of, statistical information related to the, company. Which of the following, source of data is represented in this, case?, (a), (b), (c), (d), , Internal source of data, External source of data, Primary source of data, Secondary source of data, , 62. Which of the following survey method, should be used to know the changing, demand of the buyers?, (a), (b), (c), (d), , Census method, Sample method, Personal investigation, Either (a) or (b), , 63. Consumer’s demand for garments, changes regularly. Which of the, following method of collecting primary, data is most suitable in this situation?, (a), (b), (c), (d), , Direct personal interview, Indirect oral interview, Information through local correspondents, Telephonic interview, , 64. Investigator choose wrong samples for, conducting the survey to know about, change in demand trends. This is, referred to as ……… error., (a) sampling, (c) biased, , (b) non-sampling, (d) Both (a) and (c), , 65. Assertion (A) Telephonic interviews can, be substituted for the situation where, information related to changing pattern, of demand is required, provided, respondents are reluctant to give, information., Reason (R) Statistical information plays, a vital role for the companies to keep, earning profits., Alternatives, (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of, Assertion (A)

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21, , CBSE New Pattern ~ Economics XI (Term I), , (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) Both are false, , Direction Read the following case study, and answer questions 66 to 70 on the, basis of the same., You are Rohan Verma, an investigator who, wish to conduct a survey to study the smoking, behaviour of University students. For this, reason, you prepared a questionnaire based, upon the objective of the survey and keeping, in mind the size of the target group, trained 5, people to complete the survey. Your target, group comprised of 1,500 students across 10, different colleges. You followed all methods of, statistics to ensure the accuracy of the data., , 66. Which of the following source of data is, referred in the above situation?, (a) Primary data, (c) Internal data, , (b) Secondary data, (d) None of these, , 67. The person who helps the investigator in, collecting information is known as …… ., (a) Enumerator, (c) Investigator, , (b) Respondent, (d) None of these, , 68. Which method of collecting primary, data will be most suitable in the above, situation?, (a), (b), (c), (d), , Direct personal investigation, Indirect oral investigation, Information through local correspondents, None of the above, , 69. Most important step to be followed after, preparing the questionnaire will be … ., (a) pre-testing, (c) pilot survey, , (b) post-testing, (d) Both (a) and (c), , 70. Assertion (A) Indirect oral investigation, method is less reliable but economical., Reason (R) When information is, collected from third party, information, should be verified before analysis., , 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) Both are false, , Direction Read the following case study, and answer questions 71 to 75 on the, basis of the same., The first and most popular data collection, techniques for eliciting idiosyncratic emotion, content are structured and semistructured, in-depth interviews with open-ended and, probing questions activating an athlete’s recall, of thoughts and feelings prior to and during, best and worst performances., It is usually recommended in pilot and, exploratory studies to generate idiosyncratic, labels and then to aggregate most selected, items into a stimulus list or standardised, emotion scale., Case study research typically includes, multiple data collection techniques and data, are collected from multiple sources., Data collection techniques include interviews,, observations (direct and participant),, questionnaires, and relevant documents., The use of multiple data collection techniques, and sources strengthens the credibility of, outcomes and enables different, interpretations and meanings to be included, in data analysis. This is known as, triangulation., , 71. Which are the multiple sources of, collection of data available?, (a), (b), (c), (d), , Internal and External, Primary and Secondary, Both (a) and (b), Neither (a) nor (b)

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22, , CBSE New Pattern ~ Economics XI (Term I), , 72. The method discussed in the case study, is a method of ……… ., (a), (b), (c), (d), , collecting primary data, collecting secondary data, conducting survey, All of the above, , (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) Both are false, , 74. Open-ended surveys are those which, includes ……… ., , 73. Assertion (A) Various methods of, quantitative facts ensure credibility of, information., Reason (R) Unverified data leads to, misleading conclusion and defeat the, purpose of study., Alternatives, (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of, Assertion (A), , (a) fixed opinions, (c) Both (a) and (b), , (b) varied opinions, (d) Neither (a) nor (b), , 75. Triangulation refers to, (a) multiple data collection techniques and, sources to strengthens the credibility of, outcomes., (b) enables different interpretations and, meanings to be included in data analysis., (c) Both (a) and (b), (d) Neither (a) nor (b), , ANSWERS, Multiple Choice Questions, 1. (a), 11. (a), 21. (d), , 2. (d), 12. (b), 22. (d), , 3. (a), 13. (b), 23. (a), , 4. (b), 14. (c), 24. (a), , 5. (c), 15. (d), 25. (a), , 6. (c), 16. (a), 26. (a), , 7. (c), 17. (b), 27. (d), , 8. (a), 18. (a), 28. (d), , 9. (c), 19. (d), 29. (b), , 10. (c), 20. (d), 30. (c), , 31. (c), 41. (a), 51. (d), , 32. (c), 42. (c), 52. (a), , 33. (c), 43. (b), 53. (c), , 34. (a), 44. (a), 54. (d), , 35. (a), 45. (a), 55. (c), , 36. (a), 46. (a), , 37. (c), 47. (b), , 38. (d), 48. (a), , 39. (b), 49. (a), , 40. (c), 50. (a), , 58. (a), , 59. (a), , 60. (b), , 63. (c), 73. (a), , 64. (a), 74. (b), , 65. (b), 75. (c), , 66. (a), , 67. (a), , 68. (b), , 69. (d), , 70. (a), , Assertion-Reasoning MCQs, 56. (c), , 57. (a), , Case Based MCQs, 61. (a), 71. (a), , 62. (b), 72. (a)

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23, , CBSE New Pattern ~ Economics XI (Term I), , EXPLANATIONS, 1. Primary source of data is collected by the, investigator himself for the first time for a, pre-determined purpose., , 2. Investigator is the person who collects all, relevant statistical information for a, pre-determined purpose., , 3. Survey is the most popular name for, collecting required statistical information, from various sources., , 4. Enumerators are the trained professionals, who collect in the information on behalf of, the investigator to collected data of a vast, population., , 5. Statistical data can be collected from, internal sources i.e., within the organisation, and external sources i.e., outside the, organisation., , 6. Secondary data is known as second hand, data as it is already collected by someone, else., , 7. Secondary information can be collected, either from published sources or from, unpublished sources., , 8. Law of statistical regularity ensures that the, sample is a true representative of the, population., , 9. As the data is already collected and, available in published form, it is an example, of secondary data., , 10. Data collected from NSSO is an example of, external source of data, rest all are examples, of internal source of data., , 11. Internal sources are more reliable as they, are collected from the organisation itself and, thus, can be verified over and over again., , 12. Data collected from any published sources is, known as secondary data., , 13. Statistical enquiry is an investigation process, to collect relevant information from variety, of sources., , 14. Schedules are prepared by the investigators, and given to the enumerators to be filled by, them from the respondents., , 15. All the methods mentioned are the methods, of collecting primary data., , 16. For infinite size of population, it is near, impossible to conduct a census method thus,, in this situation sampling is the best method to, be used., , 17. Primary data collection method requires more, time as the information is being collected for, the first time., , 18. Collecting information about population need, the entire population of the country, thus, census method is used in this situation., , 19. Personal prejudice is a common limitation of, all methods of collecting primary data while, personal investigation has an additional, limitation of not being able to cover wide area, of investigation., , 23. Primary data is known as original data as it is, collected for the first time by the investigators., , 24. In direct personal investigation, investigator, goes to the sources directly to collect the, information so, it can cover uneducated, population as well., , 26. Under indirect oral investigation, data is, collected from third parties thus, it is less, accurate as compared to direct personal, investigation., , 27. Mailed questionnaire method can reach to the, widest area as under this, investigator can send, emails to number of respondents at one go., , 28. Secondary sources of data are already, collected by other investigators and are, available in either published or unpublished, sources as listed in the question., , 29. Secondary data is already collected by, someone else for other purpose, so more, precaution should be kept in mind while, collecting this type of data., , 30. A set of questions prepared for collecting, information for a pre-determined purpose is, known as a questionnaire., , 31. A person who conducts a statistical enquiry is, known as an investigator., , 33. Quota sampling is a method of non-random, sampling as in this case investigator gives, importance to different samples based upon, his discretion.

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24, , CBSE New Pattern ~ Economics XI (Term I), , 35. Sampling errors can be avoided by, increasing the sample size., , 36. Generally, the data collected from the, secondary sources do not match the purpose, for which the current study is being, conducted., , 37. NSSO is a competent organisation for, collecting information, so one can rely on, the data collected by NSSO., , 38. In case of telephonic interview, information, is kept between investigator and respondent,, thus, it is possible to maintain secrecy., , 39. This method is used when data is to be, collected within a short span of time and on, a regular basis., , 42. The case mentioned is an example of, secondary source of data as the information, is already available in published form., , 45. In this method, the investigator need not to, be present physically and can connect over, phone so, it takes less time to collect the, information., , 47. Exit polls are the best example of sampling, as it is collected from a small group of, people to know the result of the upcoming, election., , 50. Quasi-random means where a part of sample, selected at random while other is based upon, the judgement of the investigator., , 52. To test the efficacy of the bulbs, all the items, cannot be tested as the population size is, large, so random sampling is the method to, be used in this case., , 53. A sampling is said to be random when all, units of the population has an equal chance, of being selected., , 56. Samples are always collected from, homogeneous sets of data i.e., data with, similar characteristics or attributes., , 57. In internal sources, data is collected from the, organisation thus the scope of investigation is, narrow., , 58. No statistical result is cent percent accurate, due to personal prejudices which are, sometimes unavoidable., , 59. One should pay more attention and be more, cautious while collecting secondary data as, they are collected by other investigator for, different purposes, which may not match the, purpose of study under concern., , 60. Census method is an extensive method as it, considers each and every unit of the, population while sampling is a different, method of collecting information as only very, few items are selected from a large group to, analyse the data., , 61. As the information is collected from within, the organisation it is referred to as an internal, source of data., , 62. Survey is conducted among a group of, consumers and not all consumers in the, market. This is a situation of sample survey., , 63. Consumer’s preferences change very often so,, the company needs information on a regular, basis. Information through local correspondents, is the best suited method in this situation., , 64. Error that arises due the wrong selection of, sample, is known as, sampling error., , 65. Telephonic information can be a regular, source of information at less time however, it, is less accurate as the respondent is not, physically present., , 66. Data which is collected for the first time to, collect relevant information is known as, primary data., , 68. Indirect oral investigation method is used in, the situation where either direct contact with, the respondent is not possible or they are not, reliable., , 69. A questionnaire tested on a small scale before, actually using it to collect information is, known as pilot survey., , 70. Any information collected from third parties is, not very accurate as they might give false, information due to loss of knowledge or interest., , 71. The broad sources of collecting data are, internal sources and external sources., External sources further include primary and, secondary sources., , 74. A survey is said to be open ended when, respondents can give their own opinion, without any restriction and hence there are, no fixed answers.

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25, , CBSE New Pattern ~ Economics XI (Term I), , 03, Organisation of Data, Quick Revision, 1. Organisation of Data It is a systematic, arrangement of collected figures so that the, data becomes easy to understand and more, convenient for further statistical treatment., Classification is a tool to organise data., 2. Classification of Data Classification is the, process of arranging data into different groups, or classes on the basis of some common, characteristics., 3. Objectives of Classification of Data The, following are the objectives of classification of, data, (i) The main objective of classification is to, condense the mass of data to make them, easily understandable., (ii) It clearly reveals the points of similarities, and dissimilarities in the statistical data., (iii) It facilitates the comparison of data., (iv) With the help of classification, data can be, presented scientifically., , 4. Basis of Classification of Data The basis of, classification are as follows, (i) Geographical/Spatial Classification This, classification of data is based on the, geographical or locational differences of the, data., (ii) Chronological or Temporal Classification, Data are classified on the basis of time., (iii) Qualitative Classification This, classification is according to qualities or, attributes of the data., , (iv) Quantitative Classification Data are, classified into classes or groups on the basis, of their numerical values., (v) Conditional Classification When data are, classified with respect to a specific condition,, the type of classification is called conditional, classification., , 5. Variables A characteristic or a phenomenon, which is capable of being measured and, changes its value overtime is called a variable., Two types of variables can be classified as, below, (i) Continuous Variable A continuous, variable is the one which can take any value,, i.e. integral value or fractional value in a, specified interval., (ii) Discrete Variable A discrete variable can, take only certain integral values. Its value, changes only by finite jumps., It jumps from one value to another but does, not take any intermediate value, i.e., fractional value between them., , 6. Frequency Distribution It shows how, different values of a variable are distributed in, different classes alongwith their, corresponding class frequencies., Some terms related to frequency distribution, are explained below, (i) Class Frequency It means the number of, values in a particular class., (ii) Class Limits These are the two limits of a class.

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26, , CBSE New Pattern ~ Economics XI (Term I), , The lowest value is called the lower class, limit and the highest value is called the, upper class limit., (iii) Class Width It is the difference between the, upper class limit and the lower class limit., (iv) Class Mid-point It is the middle value of, the class. It is calculated as, Upper Class Limit + Lower Class Limit, 2, , 7. Preparation of Frequency Distribution To, prepare the frequency distribution, following, components of frequency distribution are, required, (i), (ii), (iii), (iv), , Number of classes, Size of the class, Determination of class limits, Determination of frequency of each class, , 8. Methods of Class Formation There are two, methods of class formation, (i) Exclusive Method In this method, the, classes are formed in such a way that the, upper limit of one class equals the lower, limit of the next class., In this method, the upper class limit is, excluded and lower class limit is included in, the interval. e.g. 100-200, 200-300……, (ii) Inclusive Method In this method, the, upper limit of one class does not equal the, lower limit of the next class., , This method does not exclude the upper, class limit in a class interval. e.g. 800-899,, 900-999……, 9. Types of Frequency Distribution, Frequency distribution can be classified as, (i) Univariate Frequency Distribution When, data is classified on the basis of single, variable, the distribution is known as, univariate frequency distribution., (ii) Bivariate Frequency Distribution The, frequency distribution of two variables is, known as bivariate frequency distribution., (iii) Cumulative Frequency Distribution In a, cumulative frequency distribution, the, frequencies are progressively totalled and, aggregates are shown. It can be of two types, (a) ‘Less than’ cumulative frequency, distribution., (b) ‘More than’ cumulative frequency, distribution., , 10. Limitation of Classification of Data, as a Frequency Distribution There is a loss, of information, while classifying the data as, frequency distribution as it summarises the, raw data by making it concise and, comprehensible., However, it does not show the details that are, found in raw data and leads to loss of, information.

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27, , CBSE New Pattern ~ Economics XI (Term I), , Objective Questions, Multiple Choice Questions, 1. Which of the following is/are objectives, of classification?, (a), (b), (c), (d), , To simplify facts, To facilitate comparison, To point out similarities and dissimilarities, All of the above, , 2. Class width is same as ……… ., (a) class frequency, (c) Both (a) and (b), , (b) class interval, (d) Neither (a) nor (b), , 3. Food habits of an individual is an, example of, (a) attribute, (b) variable, (c) continuous variable (d) None of these, , 4. A given characteristics or attributes of a, statistical enquiry refers to which of the, following?, (a) Qualitative behavior, (b) Quantitative behavior, (c) Both (a) and (b), (d) None of the above, , (a), (b), (c), (d), , Chronological classification, Geographical classification, Qualitative classification, All of the above, , 9. A variable which can take integral as, well as fractional values is known as, ………… ., (a) discrete variable, (b) continuous variable, (c) constant variable, (d) All of the above, , 10. Classification of data based on time, period is known as ……… ., (a), (b), (c), (d), , chronological classification, geographical classification, qualitative classification, None of the above, , the attributes is referred to as ……… ., , citizenship of an individual is an, example of ……….. ., , (a), (b), (c), (d), , chronological classification, geographical classification, qualitative classification, quantitative classification, , 12. Identify the correct sequence of, , (a) quality, (b) attribute, (c) variable, (d) None of the above, , alternatives given in column II by, matching them with respective terms in, column I., , 6. Frequency of a distribution is always in, ……… terms., (b) percentage, (d) None of these, , 7. Classification should be elastic in, nature. Choose from the options below., (a), (b), (c), (d), , classification?, , 11. Data which is grouped with reference to, , 5. Categorisation of data based upon the, , (a) absolute, (c) relative, , 8. Which of the following is/are type(s) of, , True, False, Partially true, Incomplete statement, , Column I, , Column II, , A. Manifold, classification, , (i) Two classes on one, characteristic, , B. Simple, classification, , (ii) Earnings of stores, , C. Continuous, frequency, distribution, , (iii) Involves more, than one, characteristic, , D. Quantitative, classification, , (iv) Formulation of, classes on the basis of, variable

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28, , CBSE New Pattern ~ Economics XI (Term I), , Codes, A B, (a) (ii) (i), (b) (iii) (i), (c) (i) (iii), (d) (iv) (ii), , C, (iv), (iv), (ii), (i), , 16. Which of the following statistical series, , D, (iii), (ii), (iv), (iii), , 13. Write the correct sequence options in, column II by matching them with, options of column I., Column I, , Column II, , is/are not based upon general, characteristics?, (i) Time series, (ii) Spatial series, (iii) Condition series, Choose from the options below., (a) (i) and (ii), (c) (i) and (iii), , (b) (ii) and (iii), (d) None of these, , 17. In a discrete series, the number of times, an item repeats is known as ……… ., , A. Classification of data, based on time, , (i) Spatial, , B. Classification of data, based on qualities, , (ii) Quantitative, , C. Classification of data, based on numerical, values, , (iii) Chronological, , continuous variable is also known as, , D. Classification of data, based on location, , (iv) Qualitative, , (a) Simple frequency distribution, (b) Grouped frequency distribution, (c) Either (a) or (b), (d) None of the above, , Codes, A B C, (a) (i) (ii) (iii), (b) (iv) (iii) (ii), (c) (iii) (iv) (ii), (d) (ii) (iii) (iv), , 18. The frequency distribution of a, , is necessary that the classes are, independent, mutually exclusive, non-mutually exclusive, None of the above, , 15. Which of the following is/are statistical, series based on construction?, (i) Individual series, (ii) Discrete series, (iii) Continuous series, Choose from the options below., (a), (b), (c), (d), , 19. Mutually exclusive distribution is used, to represent, , D, (iv), (i), (i), (i), , 14. For determining the class frequency, it, (a), (b), (c), (d), , (a) Class frequency, (b) Cumulative frequency, (c) Number, (d) None of the above, , (i) and (ii), (ii) and (iii), (i) and (iii), (i), (ii) and (iii), , (a) individual series, (c) continuous series, , (b) discrete series, (d) All of these, , 20. Arranging the data in different classes, according to a given order is known as, a series., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 21. Choose the correct equation from given, below., (a) S = r/n, (c) S = r + n, , (b) S = r – n, (d) None of these, , (Here S = Size of class, r = Range,, n = Number of class), , 22. Which of the following is/are type(s) of, frequency distribution?, (a), (b), (c), (d), , Individual frequency distribution, Discrete frequency distribution, Continuous frequency distribution, Both (b) and (c)

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29, , CBSE New Pattern ~ Economics XI (Term I), , 23. The difference between highest and, , 30. The method in which the upper limit of, , lowest items of the series is known as, class width. Choose from the options, below., , a class interval is same as the lower, limit of the lower limit of the next class, interval is known as, , (a), (b), (c), (d), , (a) Cumulative method (b) Inclusive method, (c) Exclusive method, (d) None of these, , True, False, Partially true, Incomplete statement, , 24. The extreme values of the class are, known as limits., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 25. Inclusive continuous series cannot be, used for further analysis unless, converted to exclusive series. Choose, from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 26. A quantity which varies from one, individual to another is known as, ……… ., (a) Array, (c) Variable, , (b) Series, (d) None of these, , 27. In a frequency distribution, each unit of, the data can be exactly measured., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 28. Which of the following is/are type(s) of, continuous frequency distribution?, (a) Inclusive series, (c) Open-ended series, , (b) Exclusive series, (d) All of these, , 29. The difference between upper limit and, lower limit of a class is known as, (a) Class frequency, (c) Class mid-point, , (b) Class limits, (d) Class interval, , 31. The arrangement of raw data in, increasing or decreasing order of the, magnitude is known as, (a) Interval, (c) Range, , (b) Array, (d) None of these, , 32. In an individual series, each item has, (a), (b), (c), (d), , same frequency, different frequency, varied frequency, None of the above, , 33. The number of observations in a class is, called, (a) Interval, (c) Array, , (b) Frequency, (d) None of these, , 34. Identify the discrete variable from the, given below., (a) Age of employees, (b) Weight of students, (c) Salary of employees (d) Children in a family, , 35. The value exactly at the middle of the, interval is known as, (a) Class width, (c) Mid value, , (b) Class size, (d) Upper limit, , 36. Which of the following is not a, frequency distribution?, (a) Cumulative, (c) Open ended, , (b) Continuous, (d) None of these, , 37. In order to convert an inclusive series, into an exclusive one, we need to, subtract 1 from both lower limit and, upper limit of each class interval., Choose from the option below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement

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30, , CBSE New Pattern ~ Economics XI (Term I), , 38. How many types of cumulative, frequency distributions are there?, (a) 2, (c) 4, , (b) 3, (d) None of these, , 39. An inclusive series is given as, 1-9,, 10-19, 20-29. What will be the mid, value of the second class in this, situation?, (a) 10, (c) 14.5, , (b) 19, (d) 24.5, , 40. Monthly salary of an individual is an, example of continuous variable., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 41. Which of the following series can take, only integral values?, (a), (b), (c), (d), , Individual series, Discrete series, Continuous series, Both (a) and (b), , 42. In less-than cumulative frequency, distribution, the series is arranged in, ……… order., (a), (b), (c), (d), , increasing, decreasing, constant, None of the above, , 43. Bi-variate frequency distributions are, also known as ……… ., (a), (b), (c), (d), , Two-way table, Two-way series, Multiple frequency distribution, None of the above, , 44. An open-ended series doesn’t have, upper limit in every class interval., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 45. Observe the series given, 0-10, 10-15,, 15-30, 30-50. Identity the type of series, in the given example., (a), (b), (c), (d), , Exclusive and open ended, Exclusive and unequal, Inclusive and open ended, Inclusive and unequal, , 46. Uni-variate frequency distributions are, also known as ……… ., (a), (b), (c), (d), , One-way table, Single table, One-way frequency distribution, All of the above, , 47. In more than cumulative frequency, distribution, the series is arranged in, ……… order., (a), (b), (c), (d), , increasing, decreasing, constant, None of the above, , 48. The frequency distribution representing, the ages of father and sons/daughters, will be represented by, (a), (b), (c), (d), , uni-variate frequency distribution, bi-variate frequency distribution, cumulative frequency distribution, None of the above, , 49. If we add frequencies one by one to the, previous frequency in an ascending, order of the magnitude of the frequency, distribution, we get, (a) more than cumulative frequency distribution, (b) less than cumulative frequency distribution, (c) bi-variate frequency distribution, (d) multi-variate frequency distribution, , 50. In the construction of a frequency, distribution, it is generally preferred, that classes should be of, (a), (b), (c), (d), , equal width, unequal width, increasing width, decreasing width

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31, , CBSE New Pattern ~ Economics XI (Term I), , 51. From the given data, find the number, of students scoring 20 or more marks in, Economics., , (a), (b), (c), (d), , Marks, , No. of Students, , 0-5, , 5, , 5-10, , 7, , 10-15, , 3, , 15-20, , 10, , 20-25, , 15, , 25-30, , 10, , 30-35, , 8, , 35-40, , 12, , 20, 35, 45, 25, , 52. Census of India depicting birth rate, over last decade is an example of, (a), (b), (c), (d), , geographical classification, chronological classification, qualitative classification, quantitative classification, , 53. Classification of data that can represent, two or more variables is known as, (a), (b), (c), (d), , Two-classification, Manifold classification, Both (a) and (b), Neither (a) nor (b), , 54. In an inclusive series, (a), (b), (c), (d), , both class limits are considered., both class limits are excluded., upper limit is excluded., lower limit is excluded., , 55. Under ……… series, there is no, frequency distribution as every number, is unique., (a), (b), (c), (d), , individual, discrete, continuous, None of the above, , Assertion-Reasoning MCQs, Direction (Q.Nos. 56 to 60) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 56. Assertion (A) Classification of data is, required for further statistical analysis., Reason (R) Classification helps in, simplifying data and enhances, understanding., , 57. Assertion (A) Classification facilitates, grouping of data based upon similarities, and dissimilarities., Reason (R) Classification enables a, person to compare various forms of data., , 58. Assertion (A) Classification of data, using time dimensions has more, accuracy as compare to other forms of, classification., Reason (R) Data can be presented,, once it is classified as per the need of, investigation., , 59. Assertion (A) Attributes of a variable, can vary from one investigator to, another depending upon the method of, statistical enquiry used., Reason (R) Variables can take any value, including integral and fractional values., , 60. Assertion (A) Bi-variate frequency, distribution is a form of exclusive, frequency distribution., Reason (R) A form of presentation, capable of representing more than two, variables at a time is considered as, bi-varite.

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32, , CBSE New Pattern ~ Economics XI (Term I), , Case Based MCQs, , 64. Which of the following is/are, , Direction Read the following case study, and answer questions 61 to 65 on the, basis of the same., Collection of data is an important step in, statistics. However, raw data cannot be used, unless organised in a meaningful way. Few, examples of organisation are given below,, observe these carefully and answer the, questions., (a) Production of wheat in India in 2001, , (a) It helps in summarising the data, (b) It enables further mathematical treatment, (c) It enhances human knowledge, (d) All of the above, , 65. As per table (b), if a student has scored, 19.5, it will be recorded in which class, interval?, (a) 10-19, (c) Either (a) or (b), , (b) 20-29, (d) None of these, , Marks, , No. of students, , 01-09, , 05, , 10-19, , 08, , Direction Read the following case study, and answer questions 66 to 70 on the, basis of the same., Collection of data is the first step in a statistical, analysis. Data can be collected either from, primary source or secondary source. Primary, data is original as it is being collected for the, first time. After collecting the data, next step is, to organise the data as raw data cannot be used, for further statistical analysis. There are various, methods of classification of data based upon, the nature of quantitative data., , 20-39, , 02, , 66. Time series graphs are presented on the, , 40-69, , 06, , 70-79, , 05, , basis of general characteristics of a data., Choose from the options below., , Region, , Production, (in million tonnes), , Rajasthan, , 5,000, , UP, , 6,550, , Punjab, , 4,800, , Haryana, , 4,200, , (b) Marks of students in Statistics, , 61. Table (a) shows which of the following, methods of classification?, (a) Spatial classification, (b) Time series, (c) Quantitative classification, (d) None of the above, , 62. In table (b), ……… series is used to, arrange the data., (a) inclusive, (c) both (a) and (b), , (b) exclusive, (d) Neither (a) nor (b), , 63. Which of the following best describes, the classification in table (b)?, (a), (b), (c), (d), , objective(s) of classification?, , Unequal and exclusive, Open-ended and exclusive, Unequal and inclusive, Open-ended and inclusive, , (a) True, (c) Partially true, , (b) False, (d) Incomplete statement, , 67. Classification of data based on time, period is known as ……… classification., (a) chronological, (c) spatial, , (b) temporal, (d) Both (a) and (b), , 68. Data are grouped with reference to the, attributes is referred to as … classification., (a) qualitative, (c) both (a) and (b), , (b) quantitative, (d) Neither (a) nor (b), , 69. In which of the following method of, frequency distribution, the upper limit, of each class is excluded from the series, but equal to the lower limit of the, succeeding series?, (a) Continuous exclusive frequency, distribution

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33, , CBSE New Pattern ~ Economics XI (Term I), , (b) Continuous inclusive frequency distribution, (c) Continuous cumulative frequency distribution, , (d) None of the above, , 70. Assertion (A) Classification of data is, done after organisation process., Reason (R) Collection of raw data is, not useful for further analysis., 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 false, but Reason (R) is true, (d) Both are false, , Direction Read the following case study, table carefully and answer questions, 71 to 75 on the basis of the same., Weight in kg, No. of students, Tally Marks, (Frequency), (Class interval), 44-48, , 71. The above series is an example of, ………… series., (a), (b), (c), (d), , inclusive, exclusive, Both (a) and (b), Neither (a) nor (b), , 72. The above situation shows which of the, following types of presentation of data?, (a), (b), (c), (d), , Chronological classification, Spatial classification, Qualitative classification, Quantitative classification, , 73. What is the percentage of students, having weight more than 63 kgs?, (a), (b), (c), (d), , 43.25%, 47.22%, 51.63%, 62.32%, , 74. How many students have weight less, than 58 kgs?, (a) 12, (c) 7, , (b) 15, (d) 10, , III, , 3, , 49-53, , IIII, , 4, , 54-58, , IIII, , 5, , values is known as …… ., , 59-63, , IIIIII, , 7, , 64-68, , IIIIIIII, , 9, , 69-73, , IIIIIII, , 8, , (a), (b), (c), (d), , 75. Variable which doesn’t take integral, Individual series, Discrete series, Continuous series, None of the above, , ANSWERS, Multiple Choice Questions, 1. (d), 11. (c), 21. (a), , 2. (b), 12. (b), 22. (d), , 3. (a), 13. (c), 23. (b), , 4. (a), 14. (b), 24. (a), , 5. (b), 15. (b), 25. (a), , 6. (a), 16. (d), 26. (c), , 7. (a), 17. (a), 27. (b), , 8. (d), 18. (a), 28. (d), , 9. (b), 19. (c), 29. (d), , 10. (a), 20. (a), 30. (c), , 31. (b), 41. (d), 51. (c), , 32. (a), 42. (a), 52. (b), , 33. (b), 43. (d), 53. (b), , 34. (d), 44. (b), 54. (a), , 35. (c), 45. (b), 55. (a), , 36. (d), 46. (c), , 37. (c), 47. (b), , 38. (a), 48. (b), , 39. (c), 49. (a), , 40. (a), 50. (a), , 58. (c), , 59. (b), , 60. (c), , 63. (c), , 64. (d), , 65. (d), , 66. (b), , 67. (d), , 68. (a), , 69. (a), , 70. (c), , Assertion-Reasoning MCQs, 56. (a), , 57. (a), , Case Based MCQs, 61. (a), , 62. (a)

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34, , CBSE New Pattern ~ Economics XI (Term I), , EXPLANATIONS, 1. The main purpose of classification of data is, 2., , 3., 6., , 7., , 11., , 14., , 15., , 16., 17., 18., , 19., , 20., , 21., 22., , to make it simple for understanding and, facilitate further analysis., Class width is the difference between upper, limit and lower limit of the class which is, same as class interval., Any habit is an attribute or characteristic of a, person., Frequency of a distribution is always a, absolute number as it represents the number, of times an item has repeated in a class., Elasticity means flexibility and classification, should be flexible so that it can be used in, different situations., Qualitative classification is the arrangement, of data based upon one or more attributes or, characteristics present in the data., Mutually exclusive events are those which, belong to only one group of class and not a, part of other classes., Based upon the construction of series there, are two types of series, i.e., discrete and, continuous. Discrete series records only, integral values while continuous series, records both integral and fractional values., All the given classifications are based upon, one or the other characteristics of the data., Class frequency indicates the occurrence of, an item more than once in a particular series., A continuous distribution is known as a, simple frequency distribution as it represents, only one attribute of the data., Mutually exclusive distribution is used to, present continuous series which has different, items in different class., A series is an arrangement of items in either, increasing order or decreasing order of the, given data., The given formula is used to form the size of, the class from the given raw data., There are broadly two types of frequency, distribution i.e., discrete frequency, distribution comprised of integral values with, frequency and continuous frequency, distribution comprised of both integral values, and fractional values along with frequencies., , 23. The difference between highest and lowest, values of the items is known as range., , 24. The extreme values of any continuous series, i.e., lower limit of first class and upper limit, of last class are known as class limits., , 25. Inclusive series are used to represent the data, only, for further analysis it needs to be, converted into exclusive series., , 26. Value of a variable varies from one, investigator to another depending upon the, method of statistical enquiry., , 27. Frequency distribution doesn’t give exact, information about the precise number of, items in the series., , 29. Class interval in a continuous series is the, difference between the upper limit and lower, limit of the class., , 32. In an individual series, each item is unique., Thus each item has a same frequency equal to 1., , 34. Number of children in a family can only be, in whole numbers so, this is an example of, discrete variable., , 35. Mid-value is the average value of the given, class interval, calculated as lower limit plus, upper limit and divided by 2., , 36. The given options are an example of, different types of frequency distribution., , 37. In order to convert an inclusive series into, exclusive series we need to get the difference, of the upper limit of first class and lower, limit of the next class and then subtract, half of that difference from each lower limit, and add half of the difference in each, upper limit., , 38. There are two types of frequency distribution, i.e., more than cumulative distribution and, less than cumulative frequency distribution., , 39. Mid-value is equal to (L1 + L2)/2., So,, , (10+19)/2 = 14.5, , 40. Income of a person can take both integral, value as well as fractional value. So, this is an, example of continuous variable.

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35, , CBSE New Pattern ~ Economics XI (Term I), , 41., , Both discrete series and continuous series, can take integral values. But discrete series is, comprised of only proper integers and no, factional values., , 42. Less-than cumulative frequency distribution, is arranged in increasing order as each item, is added to the previous one to arrive at the, distribution., , 43. Bi-variate frequency distributions represent, two variables at one place, thus known as, two-way frequency distribution., , 44. An open-ended series is the one which don’t, have the extreme limits of the class i.e., the, lower limit of the first class and upper limit, of the last class., , 45. The given case is an example of exclusive, continuous frequency alongwith unequal, class interval series as the widths of the, classes are not same and the upper limit of, first class is equal to lower limit of next, class., , 46. Uni-variate frequency distribution represents, only one variable at a time and that is why, it is known as one-way frequency, distribution., , 47. More-than cumulative frequency distribution, is arranged in decreasing order as each item, is subtracted from the previous one to arrive, at the distribution., , 48. Frequency that is used to represent two, attributes of the distribution is known as, bi-variate frequency distribution., , 49. More than cumulative frequency distribution, is a type of continuous frequency, distribution in which the frequencies are, arranged in the increasing order., , 50. In an ideal frequency distribution, the width, of the class should be equal as it helps in, both presentation and comparison of data., , 51. Students scoring more than 20 marks, = 15 + 10 + 8 + 12 = 45, , 52. Census is conducted in every 10 years so, its, organisation is based upon chronological, classification., , 54. Inclusive series is the one in which upper, limit of the class is included in the series, itself., , 55. An individual series is used to represent, heterogeneous data i.e., all items of the series, are different from each other so, there is no, frequency., , 56. Classification is an important method of, statistics after collection of data which helps in, analysis and drawing conclusion., , 58. Different methods of classification are used to, suit different purposes, thus no particular, method of classification is better than the other., , 59. Attributes or the characteristic are the, variables of a data, whose values changes from, one person/investigator to another., , 60. Bi-variate means more than one variable. It is, a type of frequency distribution which is used, to represents two different attributes of a given, data., , 61. As the data is classified based upon the, geographical area, it is known as geographical, classification or spatial classification., , 62. In an inclusive series, the upper limit of the, first class is not equal to the lower limit of the, succeeding class., , 63. The given series is inclusive as well as, unequal as the class interval/width are not, same for all classes., , 65. In the given case, 19.5 can only be recorded, once the series is converted into an exclusive, series., , 66. Times series graphs are based upon the data, given over different time period and not on, the basis of general characteristics., , 70. Classification and organisation of data are one, or the same thing and it is done after, collection of data., , 72. The given example is an example of, qualitative classification as it is based upon the, attribute of students i.e., weight., , 73. Students having weight more than 63 kg are, (9 + 8) = 17, So, the percentage will be (17/36) X 100 =, 47.22%, , 74. Students having weight less than 58 kgs are 12, i.e., (3 + 4 + 5)., , 75. All types of series include integral values, while fractional values are included only in, continuous series.

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36, , CBSE New Pattern ~ Economics XI (Term I), , 04, Presentation of Data, Quick Revision, 1. Presentation of Data It refers to the art of, presenting data in such a way that makes it, easy for the user to understand., , (iii) Caption or Column Heading A word or a, phrase which explains the contents of a, column of a table is called the caption., , 2. Forms of Presentation of Data There are, three forms of presentation of data, , (iv) Stubs or Row Headings Stubs are title of, the rows of a table., , (i) Textual or Descriptive Presentation of, Data In textual presentation, data are, presented in the form of text., This form of presentation is more suitable, when the quantity of data is not too large., (ii) Tabular Presentation of Data In the, tabular presentation, data are presented in, rows (horizontally) and columns (vertically)., Tabulation is the process of presenting the, data in the form of table., (iii) Diagrammatic or Graphical Presentation, of Data Data presented in a simple and, attractive manner in the form of diagrams is, called diagrammatic presentation of data., Diagrammatic presentation of data translates, quite effectively, the highly abstract ideas, contained in numbers into more concrete, and easily comprehensible form., , 3. Essential Parts of a Table A good table, should have the following parts, (i) Table Number When there are many, tables, then these tables should be numbered, in a logical sequence., (ii) Title of the Table A title is a brief, explanation of the contents of the table., , (v) Body of the Table Body of a table means, sum total of the items in the table. Each item, in the body is called cell., (vi) Units of Measurement The units of, measurement of the figures in the table, should always be stated alongwith the title., (vii) Source Note When tables are based on, secondary data, source of the data is to be, given., (viii) Foot Note It is the last part of the table. It, explains the specific feature of the data, content of the table which is not self, explanatory., , 4. Types of Diagrammatic Presentation, Diagrammatic presentation can take the, following forms, I. Geometric Diagram They are as follows, (i) Bar Diagrams These are those diagrams in, which data are presented in the form of bars, or rectangles., There are five types of bar diagrams, Simple Bar Diagrams These diagrams are, based on a single set of numerical data. The, different items or values are represented by, different bars. Bars in these diagrams are of, the same breadth.

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CBSE New Pattern ~ Economics XI (Term I), , Multiple Bar Diagrams These diagrams, show two or more sets of data simultaneously., e.g. income and expenditure, etc. Generally,, these diagrams are used to make comparison, between two sets of series., Sub-divided/Component Bar Diagrams, These diagrams simultaneously present, total, values as well as part values of a set of data., To indicate different parts of the bars, these, are shaded with different colours or patterns., Different parts of a bar must be shown in the, same order for all the bars of a diagrams., Percentage Bar Diagrams These diagrams, show simultaneously different parts of the, values of a set of data in terms of percentages., Total value indicated by total length of bar is, assumed to be 100., Deviation Bar Diagrams The deviation bar, diagrams are used to compare the net, deviation of related variables with respect to, time and location. Bars representing positive, and negative deviations are drawn above and, below the base line., (ii) Pie or Circular Diagrams Pie diagram is a, circle divided into various segments showing the, percent values of a series. This diagram does not, show absolute values of each category., The values of each category are first expressed, as percentage of the total value of all the, categories. Since the circle comprises of 360°,, accordingly, percentage of a variable are fixed, in proportion of 360°. Different parts of a circle, may be shaded with different colours or, patterns highlighting different values., II. Frequency Diagram Data in the form of, grouped frequency distribution are generally, represented by frequency diagrams like, histogram, frequency polygon, frequency, curve and ogive, which help to represent a, continuous distribution., These are as follows, , 37, (i) Histogram A histogram is two-dimensional, diagram which represents a continuous, distribution., (ii) Frequency Polygon Presentation of the, frequencies in the form of rectangles and, joining the mid-points of the top side of the, consecutive rectangles is known as frequency, polygon., (iii) Frequency Curve The frequency curve is, obtained by drawing a smooth freehand, curve passing through the points of the, frequency polygon as closely as possible., (iv) Cumulative Frequency Curve or, Ogive This curve is constructed by plotting, cumulative frequency data on the graph paper, in the form of a smoothed curve. This curve, may be constructed by two methods, Less than Method In this method,, frequencies are cumulated and indicated in, graph corresponding to upper limits of the, classes in a frequency distribution., More than Method In this method,, frequencies are cumulated and indicated in, the graph corresponding to lower limits of, the classes in a frequency distribution., , III. Arithmetic Line Graphs An arithmetic line, graph is also called time series graph., In this graph, time (hour, day/date, week,, month and year) is plotted along X-axis and, the corresponding value of variable along, Y-axis., It can be further classified as, (i) One Variable Graph It is graph in which, the values of only one variable are shown, with respect to same time period., (ii) Two or more than Two Variable Graph, A graph in which values of two variables are, simultaneously shown with respect to some, period of time, is called two or more than, two variables graph.

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38, , CBSE New Pattern ~ Economics XI (Term I), , Objective Questions, Multiple Choice Questions, 1. Which of the following method(s) of, statistics is followed by collection of, primary data in a statistical enquiry?, (a) Classification, (c) Presentation, , (b) Organisation, (d) Both (a) and (b), , 2. Which of the following is not an, objective of classification of data?, (a), (b), (c), (d), , To simplify complex data, To facilitate comparison, To enhance human understanding, All of the above are objectives of, classification, , 3. Which of the following is/are essentials, of a good classification?, (a) It should comprised of all the items of the, population, (b) It should be simple and clear, (c) It should be comprised of all related, instruction of understanding, (d) All of the above, , 4. The main part of table is known as, (a) Body, (c) Footnote, , (b) Heading, (d) None of these, , 5. The systematic presentation of raw data, in row and column is called tabulation., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 6. Which of the following is/are part(s) of, a table?, (a) Stubs, (c) Title, , (b) Captions, (d) All of these, , 7. Horizontal bar graphs are also known as, (a) Complex bar graph, (c) Derived bar graph, , (b) Simple bar graph, (d) None of these, , 8. Tabulation makes the data complex., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 9. The main objective of tabulation is, (a) to simplify complex data, (b) to present data in a definite form, (c) Both (a) and (b), (d) Neither (a) nor (b), , 10. Headings and sub-headings given to, columns are known as ……… ., (a) Stubs, (c) Titles, , (b) Captions, (d) None of these, , 11. Which of the following parts of a table, is/are optional?, (a) Headnote, (c) Both (a) and (b), , (b) Footnote, (d) Neither (a) nor (b), , 12. Which of the following are methods of, presentation of data?, (i) Text presentation, (ii) Semi-tabular presentation, (iii) Tabular presentation, (iv) Pictorial presentation, Choose from the options below., (a) (i), (ii), (iii), (c) (i), (iii), (iv), , (b) (ii), (iii), (iv), (d) (i), (ii), (iii), (iv), , 13. Look at the graph given below., Y, 5250, 5000, 1000, 750, 500, 250, 0, , 2015, , 2016, , 2017, , 2018, , 2019, , X

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39, , CBSE New Pattern ~ Economics XI (Term I), , This is an example of, , 18. The most accurate mode of, presentation for comparison and, computation is the ........ ., , (a) complex bar graph, (b) broken scale bar graph, (c) sub-divided bar graph, (d) None of the above, , (a) diagram, (c) text, , 14. Which of the following are essentials of, a good table?, (i) Based on the objective of study, (ii) Capable of comparison, (iii) Manageable size, (iv) Attractive, Choose from the options below., (a) (i), (ii), (iii), (c) (i), (iii), (iv), , (b) (ii), (iii), (iv), (d) (i), (ii), (iii), (iv), , 15. Write the correct pair., Column I, A. Caption, , Column II, (i) Explanation of, contents of table, , B. Head note, , (ii) Supplements the, title, , C. Title of table, , (iii) Below the footnote, , D. Source of data, , (iv) Column heading, , Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) D – (iv), , 16. General purpose table is also referred, to as, (a) Repository table, (b) Original table, (c) Both (a) and (b), (d) Neither (a) nor (b), , 17. On the basis of construction, which of, the following are types of table?, (a) Simple table, (b) Complex table, (c) Derived table, (d) Both (a) and (b), , (b) table, (d) All of these, , 19. Which of the following is not a, diagrammatic presentation?, (a) Simple bar graph, (b) Multiple bar graph, (c) Histogram, (d) Percentage bar graph, , 20. Which of the following is/are the, importance of diagrammatic, presentation?, (a) Simple to understand, (b) Universal acceptance, (c) Used for locating positional averages, (d) All of the above, , 21. A simple bar graph can be drawn, (a) vertically, (c) Both (a) and (b), , (b) horizontally, (d) Neither (a) nor (b), , 22. Accuracy is not required while drawing, the diagrams. Choose from the options, below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 23. Which of the following should be kept, in mind while constructing a diagram?, (a) According to the page size, (b) Properly scaled, (c) Simple and clear, (d) All of the above, , 24. Simple bar graphs are suitable for…… ., (a) attributes, (b) frequency distribution, (c) cumulative frequency distribution, (d) All of the above

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40, , CBSE New Pattern ~ Economics XI (Term I), , 25. When the vertices of frequency, polygon are joined by a smooth curve,, it is called as ……… ., (a) Line graph, (b) Curve, (c) Frequency curve, (d) None of the above, , 30. Choose the incorrect pair from given, below., Column I, , Column II, , A. Line graph, , (i) Discrete series, , B. Histogram, , (ii) Continuous series, , C. Ogive, , (iii) Cumulative data, , 26. Diagrammatic presentation is used as it, is easy to remember diagram. Choose, from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) All of the above pairs are correct, , 31. Compound bar diagrams are same as, , 27. One-dimensional diagrams are also, , ……… ., (a) simple bar graph, (b) multiple bar graph, (c) sub-divided bar graph, (d) None of the above, , known as, (a) Simple bar graphs, (b) Multiple bar graphs, (c) Both (a) and (b), (d) Neither (a) nor (b), , 32. Identify the correct sequence of, , 28. Choose the correct pair from below., Column I, , Column II, , alternatives given in column II by, matching them with respective terms in, column I., , A. Deviation bar, graph, , (i) Cartograms, , B. Squares, , (ii) Two dimensional, diagram, , A. Multiple bar, diagram, , (i) Subdivided bar, for different parts, , C. Blocks, , (iii) Three dimensional, diagram, , B. Component bar, diagram, , (ii) Two or more sets, of data, , C. Percentage bar, diagram, , (iii) Suitable for, variable with, both, + ve and, − ve values, , D. Deviation bar, diagram, , (iv) Suitable when, the values are of, high magnitude, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) All of the above pairs are incorrect, , 29. Component bar graphs are also, , Column I, , Column II, , known as, (a) Sub-divided bar graph, (b) Percentage bar graph, (c) Broken scale bar graph, (d) Deviation bar graph, , Codes, A B C D, (a) (ii) (i) (iv) (iii), (c) (iii) (ii) (iv) (i), , A B C D, (b) (i) (iii) (ii) (iv), (d) (iv) (i) (ii) (iii)

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CBSE New Pattern ~ Economics XI (Term I), , 41, , 33. In a pie-diagram, maximum degree is, , 40. Graphical presentation is used to locate, , (a) 180, (c) 360, , (b) 240, (d) None of these, , 34. Degree of any component part of a, pie-diagram is equal to, (a) (Component Value/Total Value) × 360, (b) (Component Value/Total Value) × 100, (c) (Total Value/Component Value) × 360, (d) (Total Value/Component Value) × 100, , 35. Choose the correct statement from the, given below., (a) Diagrams cannot show a large number of, facts at a time., (b) Diagrams can show only approximated, values., (c) Diagrams as a means of drawing, conclusions, can be misused., (d) All of the above is correct, , 36. Which bar graph is suitable for, representing data with two extreme, values?, , 37. Choose the incorrect statement from, the given below., Width of the bar diagrams can vary, Length of the bar diagram can be different, Gaps within each bar should not vary, Proper scale should be used for, construction of bar diagrams, , 38. Less than ogive curve starts from …… ., (a) origin, (b) maximum point, (c) minimum point, (d) None of the above, , 41. Cubes are an example of three, dimensional diagram. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 42. Which of the following is/are parts of, graphic presentation?, (a) Graphs of frequency distribution, (b) Graphs of time series, (c) Both (a) and (b), (d) Neither (a) nor (b), , 43. In graphical presentation, data is, (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 44. Which of the following are types of, graphic distribution?, (i) Line frequency graph, (ii) Histogram, (iii) Frequency polygon, (iv) Frequency curve, (v) Cumulative frequency curve, Choose from the options below., (a) (i), (ii), (iv), (v), (c) (i), (iii), (iv), (v), , 39. More than ogive curve starts from …… ., (a) origin, (c) minimum point, , (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , presented in its accurate form. Choose, from the options below., , (a) Broken bar graph, (b) Percentage bar graph, (c) Multiple bar graph, (d) Deviation bar graph, , (a), (b), (c), (d), , positional averages. Choose from the, options below., , (b) maximum point, (d) None of these, , (b) (ii), (iii), (iv), (v), (d) (i), (ii), (iii), (iv), (v), , 45. Line frequency graphs are also known as, (a) Times series graphs (b) Arithmetic graph, (c) Both (a) and (b), (d) Neither (a) nor (b)

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42, , CBSE New Pattern ~ Economics XI (Term I), , 46. Histograms are rectangular bar graphs, , 53. Frequency distribution of more than, , which are used to represent ……… ., , ogive curves is arranged in, , (a) individual series, (c) continuous series, , (a) increasing order, (b) decreasing order, (c) constant order, (d) random order, , (b) discrete series, (d) None of these, , 47. Histograms can be constructed under, which of the following cases?, (a) When class intervals are equal, (b) When mid points are given, (c) When class intervals are unequal, (d) All of the above, , 48. Frequency polygon can be drawn, (a) with histogram only, (b) without histogram only, (c) Both (a) and (b), (d) Neither (a) nor (b), , 49. Graphical presentation of cumulative, frequency distributions is known as, (a) Frequency curve, (b) Frequency polygon, (c) Ogive graphs, (d) Histograms, , 50. Common average lines are used when, two variables are given in same unit., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 51. A curve which is drawn by joining the, mid-points of a histogram using a, straight line is known as, (a) Frequency polygon, (b) Frequency curve, (c) Both (a) and (b), (d) Neither (a) nor (b), , 52. The adjustment factor in a histogram is, equal to ……… ., (a) Width of the Class / Width of Highest Class, (b) Width of the Class / Width of Lowest Class, (c) Width of the Lowest Class / Width of the Class, (d) None of the above, , 54. False base lines are used, (a) when extreme values of given series are not, known, (b) when there are very less values given in the, frequency distribution, (c) when there are higher values given in the, frequency distribution, (d) None of the above, , 55. A symmetrical curve is the one which, has ……… ., (a), (b), (c), (d), , equal area on both sides of the curve, more area on the right side of the curve, more area on the left side of the curve, None of the above, , 56. An asymmetrical curve is the one which, has ……… ., (a), (b), (c), (d), , equal area on both side of the curve, more area on the right side of the curve, more area on the left side of the curve, Either (b) or (c), , 57. Ogive graphs can be used to locate, which of the following central, tendency?, (a) Arithmetic mean, (b) Median, (c) Mode, (d) All of the above, , 58. Ogive graphs are drawn to represent, ……… ., (a) individual series, (c) continuous series, , (b) discrete series, (d) None of these, , 59. Histograms can be used to locate which, of the following central tendency?, (a) Arithmetic mean, (c) Mode, , (b) Median, (d) All of these

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43, , CBSE New Pattern ~ Economics XI (Term I), , 60. Histogram always starts from the origin., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 61. Class frequencies of a series are also, known as, (a) Ogive, (b) Frequency polygon, (c) Histogram, (d) None of the above, , 62. Which of the following is/are various, shapes of frequency curve?, (a) J-shaped curve, (b) Reverse J-shaped curve, (c) U-shaped curve, (d) All of the above, , 63. Which of the following is/are type(s) of, time series graphs?, (a) One variable graph, (b) Two or more variable graph, (c) Graphs of different units, (d) All of the above, , 64. A frequency polygon curve having its, tail towards right side of the graph, results in, (a) normal curve, (b) positively skewed curve, (c) negatively skewed curve, (d) None of the above, , 65. Choose the correct statement out of the, following., (a) Histograms of inclusive series can only be, constructed when converted into exclusive, series, (b) Mid value series should be converted into, normal frequency distribution in order to, draw frequency polygon, (c) Frequency curves are drawn by joining mid, points of histograms by a straight line, (d) It is not possible to construct a histogram if, frequency distribution is unequal, , Assertion-Reasoning MCQs, Direction (Q.Nos. 66 to 70) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 66. Assertion (A) A proper proportion, between the vertical axis and horizontal, axis of the diagram should be marked., Reason (R) Mathematically, dependent, variables are measure on the Y-axis and, independent variables on X-axis., , 67. Assertion (A) Tabulation of data, procceedes classification., Reason (R) In classification, data is, arranged based upon varying attributes, of the statistics., , 68. Assertion (A) In the process of, tabulation of data, title of the table, should be self-explanatory., Reason (R) Raw data presented in a, tabular form organises the data to, enhance understanding., , 69. Assertion (A) Simple bar graphs are, drawn on a three dimensional plane., Reason (R) Bar graphs can be either, vertical or horizontal to represent same, information., , 70. Assertion (A) Pie-charts are more, useful means of presentation of data as, compared to histograms., Reason (R) Line graphs are used to, draw both more than and less than, ogive curves.

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44, , CBSE New Pattern ~ Economics XI (Term I), , Case Based MCQs, Direction Analyse the following case study table and answer questions 71 to 75 on the, basis of the same., Head note ...., Captions, Location, , Stubs, Gender, , Total (Rows), , Workers, Main, , Marginal, , Total, , Non-worker, , Total, , Rural, , Male, Female, Total, , 17, 6, 23, , 3, 5, 8, , 20, 11, 31, , 18, 25, 43, , 38, 36, 74, , Urban, , Male, Female, Total, , 7, 1, 8, , 1, 0, 1, , 8, 1, 9, , 7, 12, 19, , 15, 13, 28, , All, , Male, Female, Total, , 24, 7, 31, , 4, 5, 9, , 28, 12, 40, , 25, 37, 62, , 53, 49, 102, , Total (Column), Footnote..........., , 71. Identify the error in the above table, from the given below., (i) Title not mentioned, (ii) Source is not given, (iii) Units are not mentioned, Choose from the options below., (a) (i) and (ii), (c) (i) and (iii), , (b) (ii) and (iii), (d) All of these, , 72. Row headings are known as ………… ., (a), (b), (c), (d), , Stubs, Columns, Either (a) or (b), Neither (a) nor (b), , 75. In the above table, location and gender, are shown in captions. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , Direction Observe the data given below, and answer questions 76 to 80 on the, basis of the same., Distribution of Students, Based on Sections, Sections, , 73. Source of given information should be, , No. of Students, Boys, , Girls, , Total, , mentioned ……… the table., , XI-A, , 20, , 15, , 35, , (a) above, (c) to the right, , XI-B, , 15, , 25, , 40, , XI-C, , 25, , 10, , 35, , XI-D, , 18, , 22, , 40, , Total, , 78, , 52, , 130, , (b) below, (d) to the left, , 74. The above table is an example of, (a) simple table, (c) derived table, , (b) complex table, (d) raw/original table

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45, , CBSE New Pattern ~ Economics XI (Term I), , 50%, , 76. Which of the following parts of the, , Sales, , table is/are missing?, (a) Table no., (c) Source, , Net Profits, , (b) Caption, (d) Both (a) and (c), , 10%, , 14%, , 12%, , 77. Which type of diagrammatic, presentation is most suitable in the, above case?, (a), (b), (c), (d), , 1985-86, , 1987-88, Years, , Figure 2, , 78. Histogram cannot be used in the above, case as the data is ……… ., (b) discrete, (d) None of these, , 79. Which of the following is the stub of the, given table?, (a) Sections, (c) Total, , (b) No. of students, (d) Both (a) and (c), , 80. As per the above table, the total, number of boys and girls are equal to, (a) 52, (c) 130, , (b) 78, (d) None of these, , 5000, 4500, Expenditure, , 4000, , 5200, , 5200, , 600, , 600, , 750, , 850, , 800, , 1250, , 1200, , 1500, , 1000, , 850, , 700, , 1500, , 1500, , 1500, , 5000, 500, , 500, 0, , Education, , Sub-divided bar graph, Broken bar graph, Percentage bar graph, Deviation bar graph, , 82. Which of the following type of graph is, represented in Figure 2?, (a), (b), (c), (d), , Sub-divided bar graph, Broken bar graph, Percentage bar graph, Deviation bar graph, , by ………… bar graph., (a), (b), (c), (d), , (a), (b), (c), (d), , 1500, 1000, , (a), (b), (c), (d), , simple, multiple, Either (a) or (b), None of the above, , origin shows, , 2500, 2000, , represented in Figure 1?, , 84. As per Figure 2, the bar below the, , 3500, 3000, , 81. Which of the following type of graph is, , 83. Sub-divided bar graphs can be replaced, , Direction Analyse the case study graphs, and answer questions 81 to 85 on the, basis of the same., Y, 5500, , Base Line, –10%, , 1986-87, , Simple bar graph, Multiple bar graph, Sub-divided bar graph, Both (b) and (c), , (a) individual, (c) continuous, , –20%, , profit, loss, surplus, None of the above, , 85. As per given Figure 1, which family has, A, , B, Family, Clothing, Figure 1, , the lowest expenditure?, X, , C, Food, , Rent, , Other, , (a), (b), (c), (d), , Family A, Family B, Family C, All families have similar income

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46, , CBSE New Pattern ~ Economics XI (Term I), , Direction Analyse the following case, study pie chart and answer questions, 86 to 90 on the basis of the same., Italy, 30.3%, , France, 5.3%, , Other, 21%, , Ireland, 17.7%, , 88. As per the data given above, which, country has the highest degree share?, (a), (b), (c), (d), , Austria, 3.6%, Belgium, 3.8%, , Finland, 4.2%, , Denmark, 4.1%, Iceland, 10.7%, , Greece, 10.2%, , Germany, 10.2%, , 86. What is the degree share of Belgium?, (a) 3.8 degree, (c) 14.62 degree, , (b) 13.68 degree, (d) 16.42 degree, , 87. Which country has the lowest degree, share?, (a) Austria, (c) Finland, , (b) Denmark, (d) Greece, , Germany, Italy, Ireland, None of the above, , 89. The segment used to represent the, countries under the pie-diagram is, known as ………… ., (a), (b), (c), (d), , Degree share, Percent share, Both (a) and (b), Neither (a) or (b), , 90. .…… diagram is used when value of, some variable is very high or low as, compared to other values in the series., (a), (b), (c), (d), , Pie-chart, Histogram, Bar graph, Either (a) or (b), , ANSWERS, Multiple Choice Questions, 1. (d), 11. (c), 21. (c), , 2. (d), 12. (d), 22. (b), , 3. (d), 13. (b), 23. (d), , 4. (a), 14. (d), 24. (b), , 5. (a), 15. (b), 25. (c), , 6. (d), 16. (a), 26. (a), , 7. (b), 17. (d), 27. (c), , 8. (b), 18. (b), 28. (c), , 9. (c), 19. (c), 29. (a), , 10. (b), 20. (d), , 31. (b), 41. (a), , 32. (a), 42. (c), , 33. (c), 43. (b), , 34. (a), 44. (d), , 35. (d), 45. (c), , 36. (a), 46. (c), , 37. (a), 47. (d), , 38. (a), 48. (c), , 39. (b), 49. (c), , 51. (a), 61. (d), , 52. (b), 62. (d), , 53. (a), 63. (d), , 54. (c), 64. (b), , 55. (a), 65. (a), , 56. (d), , 57. (b), , 58. (c), , 59. (c), , 50. (b), 60. (c), , 68. (b), , 69. (c), , 70. (c), , 73. (b), 83. (b), , 74. (b), 84. (b), , 75. (a), 85. (a), , 76. (d), 86. (a), , 77. (d), 87. (a), , 78. (b), 88. (b), , 79. (b), 89. (a), , 80. (c), 90. (d), , 30. (d), 40. (a), , Assertion-Reasoning MCQs, 66. (b), , 67. (c), , Case Based MCQs, 71. (d), 81. (a), , 72. (a), 82. (d)

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47, , CBSE New Pattern ~ Economics XI (Term I), , EXPLANATIONS, 1. Classification or organisation of data is, followed by collection of data in a statistical, enquiry. This is the method of putting all the, data in an organised manner so as to, facilitate further analysis., , 4. Body of the table contains the main data, related to the study of enquiry., , 6. Table is used to present the classified data, which is comprised of all of the parts, mentioned in options., , 8. Tabulation process leads to simplification of, given data so as to facilitate better, understanding., , 9. A table is made with the objective of, simplifying the raw data so that it can be, used for further mathematical analysis., , 11. Headnotes and footnotes are two very, important components of a table. The former, is given on the top of the table while the, latter is mentioned at the end of the table., Though both of the components are optional, in nature i.e., they are given only when some, additional information is to be given in, addition to what is presented in the table., , 14. Qualities of a table are important as it enable, further analysis and enhances human, understanding. All the mentioned points are, characteristics of a good table., , 15. A headnote is given under the title to give, any additional information about the table, which is not mentioned in the table., , 17. Basis of construction is a way to distinguish, between various forms of table used in, various purposes. On the basis of the same,, there are two types of table i.e., simple table, and complex table., , 18. A table is considered as most accurate form, of presentation as it includes all information, in its original form., , 19. Histogram is an example of graphical presentation, and not diagrammatic presentation., , 20. Diagrammatic presentation is very useful way, of presentation of data as it is attractive and easy, to understand. Also diagrams have a long, lasting impact on the mind, so information can, be retained for long period of time., , 21. Bar graphs are used to represent the data, with only one characteristics/attribute. It can, be drawn either vertically or horizontally., , 22. Accuracy is the most important component of, a diagram, otherwise it will defeat the, purpose of presentation., , 23. Diagram is one of the most effective way of, presentation as it looks attractive and helps in, understanding the matter even to those who, don’t possess knowledge of statistics. While, constructing a diagram, all the mentioned, components should be kept in mind., , 24. Simple bar graphs representing one attribute, are used to represent the frequency, distribution., , 26. Diagram have a long lasting impact on mind, thus, it is most widely used to present various, data., , 27. One dimensional diagrams are drawn on, normal piece of paper. These graphs can be, used to draw either simple bar graph or, multiple bar graphs., , 28. Deviation bar graphs are a type of one, dimensional diagram and squares are a type, of three dimensional diagram., , 29. Component bar graphs are used to represent, multiple information using the same bar, which is divided into different components,, that is why these bar graphs are also known, as sub-divided bar graph., , 31. Compound bar graphs are multiple graphs, drawn for the same attributes, that is why, they are known as multiple bar graph., , 33. A pie-chart is drawn using a circle and total, value of degree of a pie-chart is 360., , 34. In order to convert the value of any data to, represent the same using a pie-chart, we need, to first convert each item of the data into, degree using the given formula., , 36. When a data contains extreme values i.e.,, one very high value of an item or one very, low value of an item, broken bar graph, should be used., , 37. An ideal bar graph is said to be the one, which has equal width of the bars.

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48, , CBSE New Pattern ~ Economics XI (Term I), , Even when the data has unequal class, intervals, we need to make it equal to present, the same using a bar graph., , 38. A less than ogive curve always starts from the, origin for a positive data as it is arranged in, increasing order., , 39. A more than ogive curve always starts from, the maximum limit of the data for a positive, set of quantitative information and is, arranged in decreasing order., , 42. Graphical presentation is another method of, presentation of data and broadly there are, two methods of graphical presentation as, mentioned in the options., , 43. It is a limitation of graphical presentation that, we cannot present the exact figure of data, using the graphs., , 45. Line frequency graphs are those in which, simple lines are drawn to present the data. It, can be used to represent both time series as, well as arithmetic graphs., , 46. Histograms are always drawn for the, continuous series as the bars are drawn, consecutively without any gap., , 47. Histogram is a very useful method of, presentation of data which can be drawn for, all types of continuous series., , 48. Frequency polygon is drawn by taking the, mid-points of the continuous data. It can be, drawn either using a histogram or without, using the histogram., , 50. Common average line is used when two, variables are given in two different units to, be presented under same diagram., , 51. Frequency polygons are drawn using the, points of the class intervals of the given data, with or without using the histogram., , 52. When the data is unequally distributed, we, need to adjust the same to draw a histogram, using the given formula., , 53. Ogive curve is used to draw cumulative data, only. More than cumulative data is arranged, in increasing order while less than ogive is, arranged in decreasing order., , 54. False base line is a simple line drawn above, the origin to represent the gap in the data, present or missing data in the given series., , 55. Symmetrical curve means equidistance, curves. For the data which is evenly, distributed to the right and left of the origin,, this kind of diagrams are used., , 56. Asymmetrical curve means unequal distance, curves. For the data which is unevenly, distributed to the right and left of the origin,, this kind of diagrams are used., , 57. Ogive curves are a useful measure of, calculating the one of the measures of central, tendency known as median., , 58. Ogive graphs are drawn for continuous, variable only and that too of cumulative, continuous variable., , 59. Histograms are another useful tool to, measure one of the types of central tendency, known as mode., , 60. Whether or not a histogram starts from the, origin depends upon the data available., , 61. Class frequencies are required to draw all of, the above types of graphs however it doesn’t, referred the same as mentioned above., , 62. A frequency curve can take any of the, mentioned shape depending upon the nature, of data available., , 63. A time series graph is drawn using different, time periods, it can be of all of the, mentioned types., , 64. Positively skewed curves are those which has, more data concentrated to right side of the, origin., , 65. Histograms are drawn for exclusive, continuous series, so if the frequency, distribution is inclusive frequency, distribution, then we first need to convert the, same into exclusive to draw a histogram., , 66. For drawing any graph, it should be kept in, mind that it has been drawn with proper, scale and proportionate distance from the, origin., , 67. Tabulation of data can only be done after the, data is classified based upon the given, attributes., , 68. Tabulation is the process of organising the, raw data in a simplified form. An ideal table, should have a self-explanatory title with head, note, if required.

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49, , CBSE New Pattern ~ Economics XI (Term I), , 69. A simple bar graph is drawn on a two, dimensional plane., , 70. Pie-charts and histograms are drawn for, different purposes and they have their, respective advantages., , 71. A table should be dawn with a proper, heading or title, sources and units of the data., , 74. The table is an example of complex table as, it represents more than one attribute of the, given data., , 77. The given information can be presented, using either multiple or sub-divided bar, graph as there are two characteristics about, the data presented i.e., sections and gender., , 78. In the table, all the values are in proper, numbers along with their frequencies, so this, shows a discrete series., , 81. The given graph is an example of, sub-divided or multi-story bar graph as it, represents different information using the, same bar divided into components., , 82. The given graph is an example of deviation, bar graph as it shows both positive and, negative values., , 84. A derivation bar graph is used to present the, data which has both negative and positive, values. Positive values are shown above the, origin while the negative values are shown, below the origin., , 89. A pie chart is used present the degree share, of each item given in the data., , 90. To represent data which has extreme values,, we can use either a histogram or a bar graph, depending upon the frequency distribution.

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50, , CBSE New Pattern ~ Economics XI (Term I), , 05, Measures of, Central Tendency, Quick Revision, 1. Meaning of Central Tendency Central, tendency is that value of data which represents, the whole data., According to Croxton and Cowden, “An, average is a single value within the range of the, data that is used to represent all the values in a, series. Since an average is somewhere within, the range of data, it is sometimes called, measure of central value.”, 2. Objectives and Functions of Average The, objectives/functions of an average are as follows, (i) An average is a single simple expression, in, which the net result of a complex group or, large numbers are centred., (ii) Average presents the concise picture of the, groups by a single value, so it is very, convenient to compare the different, homogeneous groups by their average., (iii) Average helps in formulation of economic, policy., (iv) Average is the basis of statistical analysis., 3. Essentials of a Good Average The essentials, of a good average are as follows, (i) A good average should be clear and stable, in definition., , (ii) An average value should be representative, of the entire population of data., (iii) A good average must be simple to, calculate., (iv) A good average should be capable of, mathematical or algebraic treatment., 4. Arithmetic Mean This is the most commonly, used measure of central tendency. It is defined, as sum of the values of all observations divided, by the number of observations and is usually, denoted by X ., According to H. Secrist, “The arithmetic, mean is the amount secured by dividing the, sum of value of the items in a series by their, numbers.”, 5. Types of Arithmetic Mean Arithmetic mean, can be of the following types, (i) Simple Arithmetic Mean In simple, arithmetic mean, all items of a series are, taken as of equal importance., (ii) Weighted Arithmetic Mean In weighted, arithmetic mean, different items are taken, as of different importance and accordingly, weights are accorded to different items, depending on their relative importance.

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51, , CBSE New Pattern ~ Economics XI (Term I), , 6. Calculation of Arithmetic Mean for Series, of Ungrouped Data (or Individual series), The arithmetic mean for series of ungrouped, data can be computed by the following two, methods, (i) Direct Method Arithmetic mean by direct, method is the sum of all observations in a, series divided by the total number of, observations., ΣX, Arithmetic Mean ( X ) =, n, where, Σ X = Sum of all observations, n = number of observations or terms, , (ii) Indirect or Assumed Mean Method, This method involves the following steps, (a) Assume a particular figure from the data, as arithmetic mean. It is called assumed, mean A. Now, obtain deviations from A, of individual observations which is, dx = X − A, (b) Find the sum of all deviations as Σ dx., (c) Substitute the values of A, Σ dx and n in, the following formula, to obtain, Σ dx, arithmetic mean ( X ), X = A +, n, 7. Calculation of Arithmetic Mean for, Discrete Series In discrete series, frequencies, corresponding to different items of the series, are also given. The arithmetic mean in discrete, series can be computed by the following three, methods, (i) Direct Method To calculate arithmetic, mean in discrete series by direct method,, we use the following steps, Step 1 Multiply the value of each, observation (X) with its respective, frequency to obtain fX and find the sum of, products denoted by Σ fX ., , (ii) Indirect or Assumed Mean Method, (or Short-cut method) The following steps, are used to calculate the arithmetic mean, Step 1 Any value of the observation is taken, as assumed mean A, preferably mid-value, of a series., Step 2 Obtain deviation of the variable X, from the assumed mean as dx = X − A, Step 3 Find the sum of frequencies and, denote is as Σ f ., Step 4 Multiply these deviations with its, corresponding frequency and find the, sum Σ fdx., Step 5 Find the sum of frequencies,, represented as Σ f ., Step 6 Substitute the values in the following, formula to get required arithmetic mean, X =A+, , Σ fdx, Σf, , (iii) Step-deviation Method In this method,, the following steps are used to calculate the, arithmetic mean, Step 1 Consider an assumed mean ( A ),, preferably mid-value of a series., Step 2 Take deviations from assumed, mean, i.e. dx = ( X − A ) and divide the, deviation by common factor indicated by, ‘c’ , then, dx, d ′x =, c, X −A, or, =, c, Step 3 Multiply each deviation by its, corresponding frequency, i.e. find fd ′x ., Step 4 Take the sum of product of, deviations and frequencies, i.e. find ∑ fd ′x., , Step 2 Find the sum of frequencies and, denote is as Σ f ., , Step 5 Find the sum of frequencies,, represented as Σ f ., , Step 3 Substitute the values in the following, formula to obtain arithmetic mean ( X ) ,, Σ fX, X =, Σf, , Step 6 Substitute the values in the following, formula to get required arithmetic mean,, Σ fd ′x, X =A+, ×c, Σf

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52, , CBSE New Pattern ~ Economics XI (Term I), , 8. Calculation of Arithmetic Mean in, Continuous Series In case of continuous, series, items are classified into different class, intervals., There are three methods of calculating, arithmetic mean in continuous series which, are given below, (i) Direct Method This method involves the, following steps, Step 1 Find the mid-value of each class, interval by using the following formula,, Mid-value (m), Lower Limit + Upper Limit, =, 2, Step 2 Multiply each mid-value (m) by their, corresponding frequency ( f ) ., Step 3 Obtain the sum of product of, mid-value and frequencies, i.e. find ( Σ fm )., Step 4 Find the sum of frequencies,, represented as Σ f ., Step 5 Substitute the values in the following, Σ fm, formula to get arithmetic mean X =, Σf, (ii) Indirect or Assumed Mean Method, (or Short-cut method) In this method, the, following steps are required to calculate, arithmetic mean, Step 1 Find mid-value of each class interval, and choose assumed mean A from these, mid-values., Step 2 Calculate deviations of mid-values, from assumed mean, i.e. dm = m − A., Step 3 Multiply the deviations by, corresponding frequencies and find sum,, i.e. Σ fdm., Step 4 Find the sum of frequencies,, represented as Σ f ., Step 5 Substitute the values in the following, formula to obtain required value of arithmetic, Σ fdm, mean ( X ), X = A +, Σf, (iii) Step-deviation Method In this method,, we use the following steps, , Step 1 Find the mid-point X of various classes, and denote as m. Consider one of the, mid-points as assumed mean A, preferably the, mid-point of the middle class., Step 2 Obtain deviation of the mid-points from, the assumed mean, i.e. find dm = (m − A )., Step 3 Consider the width of class intervals as c, m − A, and calculate d ′m = , .,  c , Step 4 Multiply each value of d ′m by its, corresponding frequency to obtain fd ′m and, find the sum Σ fd ′m., Step 5 Find the sum of frequencies, represented, as Σ f ., Step 6 Substitute the values in the following, formula to get the required arithmetic mean,, X =A+, , Σ fd ′m, ×c, Σf, , 9. Calculation of ‘Correct’ Arithmetic Mean, Sometimes, in the calculation of arithmetic, mean, some items or values are wrongly, written., Accordingly, the computed mean value is, wrong., But such mean value can be corrected with the, help of following formula, , ∑ X(Wrong) + (Correct Value), − (Incorrect Value), n, 10. Calculation of Weighted Arithmetic Mean, To calculate the weighted arithmetic mean, the, following steps are used, Step 1 Different items are assigned weights, according to their significance. Weights are, indicated by ‘W’., Step 2 Multiply the items (X ) by their, corresponding weights (W ) and find their sum,, i.e. ∑ XW ., Step 3 Divide Σ XW by the sum of weights, i.e., ΣW , to get required weighted mean,, Correct X =, , XW =, , Σ XW, ΣW

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53, , CBSE New Pattern ~ Economics XI (Term I), , 11.Calculation of Combined Arithmetic Mean, If the mean of two or more groups are known,, then combined mean of all the series can be, calculated by using the following formula, Combined Mean ( X 1 , 2 , 3 … n ), =, , n1 ⋅ X 1 + n 2 ⋅ X 2 + n 3 ⋅ X 3 + …… nn ⋅ X n, n1 + n 2 + n 3 + …… + nn, , 12. Median It is that positional value of the variable, which divides the distribution into two equal, parts. One part comprises all values greater than, the median value and the other part comprises, of all the values less than the median value., Median is the ‘middle’ term when the data is, arranged in order of magnitude., 13. Calculation of Median in Individual Series, (Ungrouped data) To calculate median in an, individual series, the following steps are used, Step 1 Arrange all the values of a given series, in ascending or descending order., Step 2 Compute the number of items, i.e. n., Step 3 If number of items, i.e. n is odd, then, use the following formula to calculate median,  n + 1, M = Size of ,  th item,  2 , Or If n is an even number, then use the, following formula to calculate median, n, n, Size of   th item + Size of  + 1 th item,  2, 2, , M =, 2, , 14. Calculation of Median in Discrete Series, To calculate median in discrete series, use the, following steps, Step 1 First of all, arrange the data in ascending, or descending order and X denotes value and f, denotes frequency., Step 2 Calculate the cumulative frequency (cf )., Step 3 Find the position of the median by using, following formula,  N + 1, Position of Median = ,  th item,  2 , where, N = Sum of frequency, i.e. ∑ f, Step 4 Find the cumulative frequency just, greater than the positional value computed., The value of X corresponding to this value of, cf is the median., , 15. Calculation of Median in Continuous, Series To get the value of the median in a, continuous series, we have to use following steps, Step 1 Firstly calculate the cumulative, frequencies., N , Step 2 Find the value of   th item and then,  2, by inspecting cumulative frequency ( cf ), find, out cf which is either equal to or just greater, than it., The class interval corresponding to this value is, called median class., Step 3 Now apply the following formula to, determine the actual median value, N, − cf, M = l1 + 2, ×c, f, where,, l1 = Lower Limit of the Median Class, cf = Cumulative Frequency of the, Class Preceding the Median Class, f = Frequency of the Median Class, c = Magnitude of the Median Class, Interval, N = Sum of Observations ( ∑ f ), 16. Quartiles Quartiles are the measures which, divide the data into four equal parts. Each, portion contains equal number of, observations., There are three quartiles, (i) First Quartile It is also called lower, quartile and is denoted by Q 1 ., First quartile has 25% of the items of the, distribution below it and 75% of the items, greater than it., (ii) Second Quartile It is also called median, and is denoted by Q 2 ., Second quartile has 50% of the items of the, distribution below it and 50% of the items, above it., (iii) Third Quartile It is also called upper, quartile and is denoted by Q 3 .

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54, , CBSE New Pattern ~ Economics XI (Term I), , Third quartile has 75% of the items of the, distribution below it and 25% of the, items above it., 17. Calculation of Quartiles in Individual, Series For computing quartiles, first of all,, arrange the data in ascending order and then, use the following formulae to calculate the,  n + 1, quartiles Q 1 = Size of ,  th item,  4 , 3 (n + 1), th item, 4, 18. Calculation of Quartiles in Discrete, Series For computing quartiles, the data first, has to be arranged in ascending order and then, it is required to calculate their cumulative, frequencies, then the following formulae are, used to find quartiles,, ( N + 1), th item, Q 1 = Size of, 4, 3 ( N + 1), Q 3 = Size of, th item, 4, 19. Calculation of Quartiles in Continuous, Series For computing quartiles, firstly find, the cumulative frequency., By applying the suitable formula, find the, quartile classes. Now apply the following, formulae to calculate required quartiles,, Q, , 3, , = Size of, , N,  N  − cf, 3   − cf,  , 4, 4, Q 1 = l1 +, ×c, × c ;Q 3 = l 1 +, f, f, , where, l 1 = Lower Limit of Class Group,, c = Width of the Class Group, cf = Cumulative, Frequency of the Class Preceding the Class, Group and f = Frequency of Class Group, 20. Mode Mode is the value of that item in a series, which occurs most frequently., 21. Computation of Mode in Individual Series, In series of individual observation, mode can, be calculated in two ways, (i) By Arraying Data In this method, we, array the data in ascending or descending, order first. The value of that item which, occurs most frequently in the distribution is, called mode., , (ii) By Conversion of Data in Discrete, Series In this method, data is converted, into discrete series and the value, corresponding to the highest frequency is, termed as mode., 22. Calculation of Mode in Discrete Series In a, discrete series, mode can be calculated in the, following two ways, (i) By Inspection Method In this method,, the value whose frequency is maximum is, said to be the mode., (ii) By Grouping Method In certain cases, the, items concentrate around more than one, value, so it becomes difficult to observe the, modal variable., , In such cases, we adopt grouping method,, wherein grouping table and analysis table are, prepared., These are as follows, Grouping Table Prepare a table consisting of, 6 columns, in addition to a column for various, values of variable., , In Column I The frequencies as given in, the question are noted against the respective, items and highest frequency is marked., In Column II The frequencies are grouped, in two, beginning with the 1st item. Find out, their total and mark the highest total., In Column III The frequencies are grouped, in two, beginning with the 2nd item. Find, out their total and mark the highest total., In Column IV The frequencies are, grouped into threes, beginning with the 1st, item. Find out their total and mark the, highest total., In Column V The frequencies are grouped, into threes, beginning with the 2nd item. Find, out their total and mark the highest total., In Column VI The frequencies are grouped, into threes, beginning with the 3rd item. Find, out their total and mark the highest total., Highest values in all the columns are shown, in bold letters or are underlined., Analysis Table The highest total of, frequencies marked in each column is now, entered in the analysis table against the, concerned values of X or item., ●, , ●, , ●, , ●, , ●, , ●

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55, , CBSE New Pattern ~ Economics XI (Term I), , We use tick mark (✔ ) in the relevant box to, show these entries. At the end, we find total, number of tick marks for each value of X . The, value of X having maximum tick marks is, called mode of the given series., 23. Calculation of Mode in Continuous Series, There are two methods to calculate mode in, continuous series, (i) Inspection Method This method is used, when frequencies of a continuous series are, regular, i.e. they increase or decrease in a, systematic order., Also, when there is a single value having, maximum/highest frequency, we determine, the modal class by inspection, i.e. the class, interval having maximum frequency is, called modal class. Now, exact value of, mode is calculated using the following, f1 − f 0, formula, Mode (Z ) = l1 +, ×c, 2 f1 − f 0 − f 2, where, l1 = Lower Limit of Modal Class, f 1 = Frequency of the Modal Class, f 0 = Frequency of the Class Preceding, Modal Class, f 2 = Frequency of the Class Succeeding, Modal Class, , c = Class Interval of the Modal Class, (ii) Grouping Method The determination of, mode by grouping method involves the, following two steps, Step 1 Determine the modal class having, maximum frequency by the process of, grouping., The grouping procedure is same as, discussed in discrete series., Step 2 Determine the exact value of mode, by the following formula, f1 – f 0, Z = l1 +, ×c, 2 f1 – f 0 – f 2, 24. Relative Position of Arithmetic Mean,, Median and Mode The relative magnitude of, Arithmetic Mean (X ), Median ( M ) and Mode, (Z ) is X > M > Z or X < M < Z ., Thus, median is always between the arithmetic, mean and the mode. Also, the relationship, among these is, Mode = 3 Median − 2 Mean, or, , Z = 3 M − 2X

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56, , CBSE New Pattern ~ Economics XI (Term I), , Objective Questions, Multiple Choice Questions, 1. Which of the following is/are objectives, of averages?, (i) To facilitate comparison., (ii) To help in decision-making., (iii) To trace mathematical relation., (iv) To understand the features of the, problem., Choose from the options below., (a) (i), (ii), (iii), (c) (i), (iii), (iv), , (b) (ii), (iii), (iv), (d) All of these, , 2. Which of the following is/are measures, of central tendency?, (a) Mean, (c) Mode, , (b) Median, (d) All of these, , 3. Which of the following is true about, arithmetic mean?, (a), (b), (c), (d), , Based on all the items of the series, Used only in case of continuous variable, Both (a) and (b), Neither (a) nor (b), , 4. The most used method of central, tendency is median. Choose from the, options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 5. Broadly, arithmetic mean is of ………, types., (a) two, (c) four, , (b) three, (d) five, , 6. Mean is a number which is always, present in the series. Choose from the, options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 7. Which of the following is/are not a, positional average?, (a) Mean, (c) Mode, , (b) Median, (d) None of these, , 8. Choose the incorrect statement from, given below., (a) A good average is the one which is least, affected by sampling fluctuations, (b) An average should be rigidly defined, (c) An average is based on the extreme, observations of the statistical distribution, (d) An average should be capable of further, algebraic treatment, , 9. Sum of deviations taken from actual, mean is always equal to, (a) sum of frequency, (c) zero, , (b) arithmetic mean, (d) maximum, , 10. The average daily wage of a group of, 100 workers was ` 250. Each worker is, now given a raise of ` 50. What is the, new average daily wage?, (a) 200, , (b) 250, , (c) 300, , (d) 350, , 11. Arithmetic mean of 5 numbers is 28., When one number is reduced, mean, gets reduced by 2. Which number is, excluded?, (a) 26, , (b) 30, , (c) 34, , (d) 36, , 12. Arithmetic mean of 5 observations Y,, Y+2, Y+4, Y+6, Y+8 is 11. What is the, value of Y?, (a) 4, , (b) 5, , (c) 6, , (d) 7, , 13. When arithmetic mean is calculated, using assumed mean and the sum of, deviation from assumed mean is zero,, which of the below statement is correct, in that situation?, (a), (b), (c), (d), , Assumed mean is equal to actual mean, Assumed mean is less than actual mean, Assumed mean is more than actual mean, It’s an exception

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57, , CBSE New Pattern ~ Economics XI (Term I), , 14. The sum of square of deviations from, actual mean is, (a) minimum, (c) zero, , following series is not accurate?, (b) maximum, (d) not defined, , 15. Simple arithmetic mean can also be, referred to as, (a) weighted mean, (c) relative mean, , (b) unweighted mean, (d) geometric mean, , 16. If the mean of a given series is 10, this, indicates that all items of the series are, equal to 10. Choose from the options, below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 17. Arithmetic mean can be calculated, under which of the following series?, (a), (b), (c), (d), , Cumulative series, Open ended series, Unequal frequency distribution, All of the above, , 18. Arithmetic mean of a group of 50, students in an exam is 48. If marks of, every student are reduced by 3, the new, average will be, (a) 45, (c) 51, , 21. Calculation of mean in which of the, , (b) 48, (d) Can’t be calculated, , 19. The mean value of a particular series of, 15. If a constant number is added to all, the items of the series, mean value will, remain unaffected. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , (a), (b), (c), (d), , Exclusive continuous series, Inclusive continuous series, Open-ended series, Unequal class interval series, , 22. The arithmetic mean of a distribution is, 45. If the sum of frequencies were 20,, what will be the product of sum of, frequencies with the variable?, (a) 450, (c) 1050, , (b) 900, (d) Can’t be determined, , 23. The scores of students in a class scores, are 97, 85, 92, 78 and 90. What will be, the average score?, (a) 85.4, (c) 90.5, , (b) 88.4, (d) 92.4, , 24. Mean marks obtained by 5 students in a, class is 66.4, marks scored by 4 students, are 70, 72, 55, 57. What will be the, marks obtained by the 5th student?, (a) 75, , (b) 77, , (c) 78, , (d) 83, , 25. Mean of a given series divides the series, into two equal parts. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 26. Combined mean method can be used to, combine arithmetic mean of ………, series., (a) 2, (c) 5, , (b) 3, (d) N-number, , 27. A distribution of three components with, , weights are assigned to all the, observations of the data., , total number of terms being 200, 250, and 300 with means 25, 10 and 15, respectively. The combined mean will, be equal to, , (a), (b), (c), (d), , (a), (b), (c), (b), , 20. Choose the correct option when equal, Weighted mean > Arithmetic mean, Weighted mean < Arithmetic mean, Weighted mean = Arithmetic mean, They are not related, , 200, 240, 300, Can’t be determined

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58, , CBSE New Pattern ~ Economics XI (Term I), , 34. Quartile of a series is based on which of, , 28. Write the correct pair., Column II, , Column I, A. Assumed mean, method, , (i) Short-cut method, , B. Weighted, arithmetic, mean, , (ii) Equal importance, to each item, , C. Mode, , (iii) Data needs to be, arranged, , D. Quartile, , (iv) Divides data in 8, parts, , Codes, (a) A-(i), , (b) B-(ii), , (c) C-(iii), , (d) D-(iv), , 29. Arrangement of data in ascending or, descending order is only required to, calculate median. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 30. Median is always a number present in, the same series. Choose from options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 31. Median of a series divides the, distribution in ……… equal parts., (a) 2, (c) 4, , (b) 3, (d) None of these, , 32. Which of the following is known as, partition values?, (a) Median, (c) Mode, , (b) Quartiles, (d) None of these, , 33. Choose the correct statement about, median., (a), (b), (c), (d), , Highest value of lowest 25% of the items, Lowest value of highest 25% of the items, Highest value of lowest 50% of the items, All of the above statements are false, , the following?, (a), (b), (c), (d), , Middle 50% items of the series, Upper 25% items of the series, Lower 25% items of the series, All the items of the series, , 35. Which of the following is true about, central tendency?, (a), (b), (c), (d), , Mode = 2 Median − Mean, Mode = 3 Median − Mean, Mode = 3 Median − 2 Mean, Mode = 2 Median − 3 Mean, , 36. Median of a given series is ‘k’. If all the, item values of series are increased by, ‘k’, then what will be the new median?, , (a) 2k, (c) k + 2, , (b) k2, (d) Can’t be determined, , 37. Which of the following central, , tendency can be located using, cumulative frequency distribution?, (i) Median, (ii) Quartiles, (iii) Mode, Choose from the options below., (a) (i) and (ii), (c) (i) and (iii), , (b) (ii) and (iii), (d) (i), (ii) and (iii), , 38. Identify the correct statement from the, given below., , (a) If all the items of a series increase by 5,, standard deviation will also increase by 5., (b) Arithmetic mean cannot be calculated for, open ended series., (c) Lower quartile represents highest value of, lowest 25% items of the series., (d) There can be more than one median in a, statistical distribution., , 39. Which of the following central, tendency can be located using, histogram?, (i) Median, (ii) Quartiles, (iii) Mode, Choose from the options below., (a) Only (i), (c) Only (iii), , (b) (ii) and (iii), (d) (i), (ii) and (iii)

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59, , CBSE New Pattern ~ Economics XI (Term I), , 40. Arithmetic mean is free from change of, origin. Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 41. Choose the correct statement from, given below., , 42. A series need to be arranged in either, ascending or descending order for, calculating which of the following?, (b) Quartiles, (d) Both (a) and (b), , 43. Given the mean value of X variable as, 50. What will be the mean value of Y, variable in the given equation, Y = 200 – 2X., (a) 0, (c) 100, , (b) 50, (d) 200, , 44. Calculation of arithmetic mean for an, inclusive frequency distribution is the, same as in case of exclusive frequency, distribution. The given statement is, (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 45. Which of the following are correct for a, symmetrical distribution?, (a), (b), (c), (d), , asymmetrical distribution (negatively, skewed)?, (a), (b), (c), (d), , Mean > Median > Mode, Median > Mode > Mean, Mean = Median = Mode, Mode > Median > Mean, , 47. Choose the incorrect statement., , (a) Quartiles are positional averages of central, tendency, (b) Median can only be located graphically, using ‘more than’ cumulative frequency, distribution, (c) Mode of a distribution is the value at the, point around which the items tend to be, most heavily concentrated, (d) All of the above are correct, , (a) Median, (c) Mode, , 46. Which of the following is correct for an, , Mean > Median > Mode, Median > Mode > Mean, Mean = Median = Mode, Mode > Median > Mean, , (a) Mode cannot be calculated in open-ended, distributions, (b) Median is affected by change in extreme, values, (c) Median is not affected by fluctuations in, sampling, (d) All of the above is incorrect, , 48. A frequency distribution with more, than 2 modal values, is known as, (a), (b), (c), (d), , Bi-modal frequency distribution, Tri-modal frequency distribution, Multi-modal frequency distribution, None of the above, , 49. A frequency distribution can have, (a) two means, (c) two modes, , (b) two medians, (d) None of these, , 50. Which of the following is correct for an, asymmetrical distribution (positively, skewed)?, (a), (b), (c), (d), , Mean > Median > Mode, Median > Mode > Mean, Mean = Median = Mode, Mode > Median > Mean, , 51. Which of the following values of, quartiles is equal to median?, (a) Q1, (c) Q3, , (b) Q2, (d) None of these, , 52. Which of the following measures of, central tendency is suitable for, qualitative measurement?, (a) Median, (c) Both (a) and (b), , (b) Mode, (d) Neither (a) nor (b)

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60, , CBSE New Pattern ~ Economics XI (Term I), , 53. Mode can be calculated only if the, series is ……… ., (a) inclusive, (c) Both (a) and (b), , the given below., (b) exclusive, (d) Neither (a) nor (b), , 54. What will be the median of the, following series?, 2, 5, 3, 4, 8, 10, 12, (a) 4, (c) 8, , (b) 5, (d) 10, , 55. What will be the median of the, following series?, 2, 3, 4, 8, 7, 12, 10, 11, (a) 7, (c) 8, , (b) 7.5, (d) 8.5, , 56. Refer to the data given in question no., 55, what will be the value of Q 1 ?, (a) 0.25, (c) 5.75, , (b) 4.25, (d) 8.25, , 57. Refer to the data given in question no., 55, what will be the value of Q 3 ?, (a) 10, (c) 0.75, , (b) 10.50, (d) 11, , 58. The mean of a given items 5, 6, 7, X, 11, and 13 is 44. Value of X will be, (a) 200, (c) 224, , (b) 222, (d) 254, , 59. In order to calculate mean of ‘n’ natural, numbers, the number of items will be, equal to, (a) 100, (c) n, , 61. Choose the incorrect statement from, , (b) 1000, (d) Infinity, , 60. The lowest value of highest 25 percent, , (a) For a symmetrical distribution, mean,, median and mode are equal to each other., (b) Mid-value series need to be converted in, normal frequency distribution in order to, calculate median., (c) Inclusive series need to be converted into, exclusive series in order to calculate, arithmetic mean., (d) Mode calculated from the empirical relation, is different from value calculated by, statistical calculation., , 62. Write the correct pair., Column I, , Column II, , A. Positional, , (i) Mean, , B. Affected by extreme, values, , (ii) Median, , C. Located by grouping (iii) Mode, Codes, (a) A-(i), (c) C-(iii), , (b) B-(ii), (d) None of these, , 63. By observation method, mode value, will lie in which class interval from the, given below?, 0-10 10-20 20-30 30-40 40-50 50-60, , Marks, Frequency, (a), (b), (c), (d), , 20, , 15, , 25, , 28, , 18, , 12, , 10-20, 20-30, 30-40, None of the above, , 64. Mode value calculated using the, , items of the series is known as lower, quartile. Choose from the options, below., , empirical formula differs from the, actual value of series. Choose from the, options below., , (a), (b), (c), (d), , (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , True, False, Partially true, Incomplete statement

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61, , CBSE New Pattern ~ Economics XI (Term I), , 65. The mode of the series 3, 4, 8, 7, 7, 8, 9, will be, (a) 8, (c) Both (a) and (b), , (b) 7, (d) 9, , 66. Quartile group is decided in continuous, series by using the following formula, (a) (N/4)th term, (c) [(N+1)/ 4]th term, , (b) 3 (N/4)th term, (d) Both (a) and (b), , 67. Division of one column in ten equal, parts is called ……… ., (a) Decile, (c) Percentile, , (b) Quartile, (d) None of these, , 68. Which of these is correct formula?, (a) Z = 3M + 2 X, (c) 2 X = 3M + Z, , 3M − Z, 2, 2X − Z, (d) M =, 3, , (b) X =, , 69. The highest value of the lowest 25, percent items of the series is upper, quartile. Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 70. 5 is the mode of the numbers 2, 4, 3, 5,, , 5, 3, 2. Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 71. In an asymmetrical distribution, if, mean is 20 and median is 25, what will, be the value of mode?, (a) 22, (c) 30, , (b) 25, (d) 35, , 72. Quartiles can be located graphically, using, (a) less than ogive only, (b) more than ogive only, (c) Both less than ogive and more than ogive, together, (d) Either less than ogive or more than ogive, , 73. Write the correct pair., Column I, , Column II, , A. Mean, , (i) It is based on all the, values., , B. Median, , (ii) It can be ascertained by, inspection., , C. Mode, , (iii) It is not affected by, extreme values., , Codes, (a) A-(i), (c) C-(iii), , (b) B-(ii), (d) None of these, , Assertion-Reasoning MCQs, Direction (Q.Nos. 74 to 80) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 74. Assertion (A) The sum of deviations, taken from their mean is always zero., Reason (R) For a symmetrical, distribution, all the three measures of, central tendency are equal to each other., , 75. Assertion (A) Arithmetic mean is a, positional average, which can be, calculated using graphical presentation, methods., Reason (R) Histograms and cumulative, graphs are used to locate positional, averages., , 76. Assertion (A) Arithmetic mean reduces, the sampling fluctuations in both, symmetric and asymmetric distribution., Reason (R) Arithmetic mean is a, representative of the whole set of, observations.

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62, , CBSE New Pattern ~ Economics XI (Term I), , 77. Assertion (A) Sum of deviations taken, from actual mean is always zero for a, symmetrical distribution., Reason (R) Sum of deviations from, assumed mean is equal to zero when, actual mean coincides with assumed, mean., , 78. Assertion (A) Median can be located, from less than ogive by taking half of, total number of items in the series., Reason (R) Quartiles are one-fourth, and three-fourth of total number of, items given in a distribution., , 79. Assertion (A) Median is not dependent, on all the data values in a dataset., Reason (R) The distance between the, median and the rest of the values is less, than the distance from any other point., , 80. Assertion (A) Mode of a distribution is, the value at the point around which the, items tend to be most heavily, concentrated., Reason (R) Median can only be, located graphically using ‘more than’, cumulative frequency distribution., , Case Based MCQs, Direction Read the following case study, and answer questions 81 to 85 on the, basis of the same., Mr. Viaan’s is head of human resources in, ABC Limited. His job is to see if his, company’s employees are being paid, relatively equally based on their, responsibilities. He needs to review all, employee records floor by floor., The third-floor manager, supervisor, casual, labourers to go first. Mr. Viaan surveyed the, salaries of all the third-floor staff and finds the, following monthly salaries as ` 5,000, ` 4,200,, ` 3,000, ` 4,200, ` 8,000, ` 10,000 and ` 9,000., , 81. Mean wage of ABC Limited will be, equal to ............... ., (a) ` 5,000, (b) ` 6,200, (c) ` 6,500, (d) Can’t be determined, , 82. What is the median of the given data?, (a) ` 3,000, (b) ` 4,200, (c) ` 5,000, (d) Can’t be determined, , 83. What will be the value of mode?, (a) ` 3,000, (b) ` 4,200, (c) ` 5,000, (d) Can’t be determined, , 84. If the monthly salary of each staff is, increased by ` 500. New average will be, (a) ` 6,200, (b) ` 6,700, (c) ` 7,200, (d) Can’t be determined, , 85. What will be the new median if each, employee gets a boost of ` 500?, (a), (b), (c), (d), , ` 5,000, ` 5,500, ` 6,000, Can’t be determined, , Direction Read the following case study, and answer questions 86 to 90 on the, basis of the same., Measures of central tendency are an effective, statistical tools, which are widely used for, different purposes. Two statistical series are, given below, observe them carefully and, answer the questions that follow., 2, , 8, , 6, , Marks, , 5-10, , 10-20, , No. of, Student, , 02, , 03, , Series 1, Series 2, , 4, , 10, , 15, , 20-45 45-60, 01, , 06, , 86. What will be the median value of series 1?, (a) 6, (c) 10, , (b) 8, (d) None of these

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63, , CBSE New Pattern ~ Economics XI (Term I), , 87. Which of the following formula should, , 94. If we reverse the data in decreasing, , be used to calculate median in series 2?, , order, value of median will be, ,  n + 1, (a) ,  th term,  2 ,  N + 1, (c) 3 ,  th term,  4 , , (a), (b), (c), (d), ,  N + 1, (b) ,  th term,  2 , (d) None of these, , 88. Mode value of series 2 will be equal to … ., (a), (b), (c), (d), , 12, 16, 28, Can’t be determined, , be used to calculate mode in series 1?, (a), (b), (c), (d), , Observation method, Grouping table method, Empirical relation between central tendencies, Can’t be determined, , 90. What will be the mode value in series 1?, (a), (b), (c), (d), , 95.What will be the mode value in the, above series?, (a), (b), (c), (d), , 89. Which of the following methods should, , 52, 55, 64, None of the above, , 54, 59, 67, Can’t be determined, , Direction Analyse the following case, study graphs and answer questions, 96 to 100 on the basis of the same., y, , (i), , 80, 70, , 6, 8, 10, None of the above, , 60, 50, , (15, 40), , 40, , Direction Analyse the following case, study graph and answer questions, 91 to 95 on the basis of the same., , 30, 20, 10, , 0, , 5, , 10 15 20 25, (ii), , 54, , 56, , 62, , 64, , 67, , 67, 77, (IN INCHES), , 91. What is the mean height of the above, students?, (a) 54, , (b) 59, , (c) 62, , (d) 67, , Number of Students, , Y, , 38, 46, HEIGHT, , 93. What will be the median value of the, above figure?, (a) 52, (c) 62, , (b) 56, (d) 65, , 20, , 20, , 20, , 15, 10, , 10, 5, 0, , data into ……… parts., (b) three, (d) None of these, , 25, , 25, , 92. Median of a given series divides the, (a) two, (c) four, , x, , 30 35, , 10, , 5, , 5, , 10, , 20, , 30 40 50 60, Mo=35 Marks, , 70, , X, , 96. According to figure one, value of, median is equal to ………… ., (a) 15, (b) 20, (c) 30, (d) 40

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64, , CBSE New Pattern ~ Economics XI (Term I), , 97. Median can be located graphically, , 99. According to figure two, the approxi-, , using which of the following?, , mate value of mode is equal to ……… ., , (a) Less than ogive, (b) More than ogive, (c) Both less than ogive and more than ogive, together, (d) All of the above, , (a), (b), (c), (d), , 98. Which form of graphical presentation is, used to locate mode?, (a) Histogram, (b) Bar graphs, (c) Cumulative curves (d) Arithmetic line graphs, , 25, 35, 45, Can’t be determined, , 100. What will be the mean value in case 1?, (a) 10, (b) 15, (c) 25, (d) None of the above, , ANSWERS, Multiple Choice Questions, 1. (d), 11. (d), 21. (c), , 2. (d), 12. (d), 22. (b), , 3. (a), 13. (a), 23. (b), , 4. (b), 14. (a), 24. (c), , 5. (a), 15. (b), 25. (b), , 6. (b), 16. (b), 26. (d), , 7. (a), 17. (d), 27. (b), , 8. (c), 18. (a), 28. (a), , 9. (c), 19. (b), 29. (c), , 10. (c), 20. (c), 30. (b), , 31. (a), 41. (c), 51. (b), , 32. (b), 42. (d), 52. (a), , 33. (c), 43. (c), 53. (b), , 34. (a), 44. (a), 54. (b), , 35. (c), 45. (c), 55. (b), , 36. (d), 46. (d), 56. (a), , 37. (a), 47. (d), 57. (c), , 38. (c), 48. (c), 58. (b), , 39. (c), 49. (c), 59. (c), , 40. (a), 50. (a), 60. (b), , 61. (c), 71. (d), , 62. (c), 72. (d), , 63. (c), 73. (a), , 64. (a), , 65. (c), , 66. (d), , 67. (a), , 68. (b), , 69. (b), , 70. (b), , 76. (a), , 77. (b), , 78. (b), , 79. (b), , 80. (b), , 83. (b), 93. (c), , 84. (b), 94. (d), , 85. (b), 95. (c), , 86. (d), 96. (a), , 87. (d), 97. (d), , 88. (d), 98. (a), , 89. (c), 99. (b), , 90. (a), 100. (d), , Assertion-Reasoning MCQs, 74. (b), , 75. (c), , Case Based MCQs, 81. (b), 91. (b), , 82. (c), 92. (a)

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65, , CBSE New Pattern ~ Economics XI (Term I), , EXPLANATIONS, 2. There are broadly three measures of central, , 14. It is a property of mean that when the deviation, , tendency i.e., arithmetic mean, median and, mode. Each measure of central tendency is, used for different purposes., , is squared up and finally added to each other,, the values comes out to be minimum., , 3. Mean is that measure of central tendency, which includes all the items present in a, given series., , 4. The most used measure of central tendency is, mean as it is easy to compute and use., , 5. Broadly arithmetic mean is of two types i.e.,, simple arithmetic mean and weighted, arithmetic mean., , 6. Mean is an average number, so it is not, necessary that it is same as any item of the, given series., , 7. Positional averages are located based upon a, definite position in the given series. Both, median and mode are positional average, while mean is based upon all the items of the, series., , 8. A good average is said to be the one which is, not only based upon the extreme values but, based upon all the items of the series like, arithmetic mean., , 9. It is a property of mean that when the, deviation is taken from actual mean, it’s sum, comes out to be zero., , 10. When all the items of a given series increase, by a certain number, mean also gets increase, with the same number., , 11. Mean = Sum of Items / No. of Items, So, Sum of Items = Mean × No. of Items, = 28 × 5 = 140 (previous sum), Therefore, new sum of observations is equal, to 26 × 4 = 104, So, the reduced number = 140 – 104 = 36, , 12. Mean = Sum of Items/No. of Items, 11 = (Y+ Y+2 + Y+4 + Y+6 + Y+8) / 5, 55 = 5Y + 20, ∴ Y = 35/5 = 7, , 13. When assumed mean and actual mean are, same, sum of deviation taken from assumed, mean also comes out to be zero., , 16. Mean is just the average of the series and it, does not indicates that all the items of the, series are equal to the value of mean., , 17. All of the mentioned series need to be first, converted into exclusive continuous series to, calculate mean., , 18. When the marks of each student are reduced, by 3, mean will also get reduced by 3 and, new mean will be 45., , 19. When all the items of a given series are, increased by a certain number, then mean, value of the series will also increase by the, same proportion., , 20. Weights are the values attached to any, number so, when equal weights are assigned, to each number of a given series, simple, mean becomes equal to weighted mean., , 21. Computation of mean is based on all the, items of the series and in case of open ended, series, the extreme values are missing, so, calculation of mean becomes approximated., , 22. Sum of observations = Mean × No. of Items, = 45 × 20 = 900, , 23. Average score or mean, = (97 + 85 + 92 + 78 + 90)/5 = 88.4, , 24. According to the above question mean is 66.4, So, 66.4 = (70 + 72 + 55 + 57 + X )/5, 332 = 254 + X, ∴, X = 78, , 25. Arithmetic means represents the average, value of the series and doesn’t divide the, series in two parts., , 26. Combined mean method is a way to combine, means of various different series. It can be, used to combine mean of n-number of series., , 27. Combined mean = {(200 × 25) + (250 × 10), + (300 × 15)} / 25 + 10 + 15, = (5,000 + 2,500 + 4,500)/50, = 12,000 / 50 = 240

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66, , CBSE New Pattern ~ Economics XI (Term I), , 29. Arrangement of data is required not only to, calculate median but also all partitioned values, including quartile, deciles and percentile., , 30. Median is the representative of the middle, most value of the series, it need not be any, value present in the same series., , 31. Median is the middle most value of the series, after arranging the data in either ascending, or descending order, so it divides the series, into two equal parts., , 32. Quartiles divides the series into four equal, parts after arranging the series, so they are, also called partition values., , 33. Median is based upon middle 50 percent of, the data, so it represents the middle most, item in the series., , 34. Quartile represent middle 50 percent data, from highest item of lowest 25 percent to, lowest item of highest 25 percent., , 36. Median is not free from change in scale so, in, this case with the given information, we, cannot calculate the value of new median., , 37. Cumulative frequency distributions like more, than cumulative and less than cumulative, series can be used to locate both median and, quartiles., , 38. There are two types of quartile i.e., lower and, upper. Lower quartile covers 25 percent of, the data while upper quartile covers 75, percent of the data., , 40. If all the items of the series are increased or, decreased by same proportion then mean will, also change in the same proportion, this is, called free from change in origin., , 41. Mode value is the one which has the highest, frequency in a given series so, the maximum, values/items are concentrated around a, definite number called mode value., , 42. Median and quartile values cannot be located, unless arranged in either ascending or, descending order., , 43. Mean value of Y = 200 – 2 × 50, = 200 – 100 = 100, , 45. A symmetrical distribution is the one which, has equal area spread across both side of the, origin, in this situation all the measures of, central tendency becomes equal to each, other., , 46. An asymmetrical distribution (negatively, skewed) is the one which has more area, spread across left side of the origin, in this, situation mode has the highest value followed, by median and mean has the least value., , 47. We can calculate all the three measures of, central tendency (mean, median and mode), in all types of continuous frequency, distributions. However, median and mode are, not based upon all the items of the series, while mean is calculated using all items of, the given series., , 48. Mode is the only measure of central, tendency which can be repeated more than, once in a series. Such series are known as, multi-modal distribution., , 49. There can be more than one mode in given, series but mean and median values are, always unique., , 50. An asymmetrical distribution (positively, skewed) is the one which has more area, spread across right side of the origin, in this, situation mean has the highest value,, followed by median and mode., , 51. Q2 or middle quartile covers 50 percent of, the total data arranged in either increasing or, decreasing order thus, also becomes equal to, median value., , 52. Only median can be used to measure, qualitative variables as it is not based upon, all the observations and just on the, arrangement of the series., , 53. Mode cannot be calculated in case of, inclusive frequency distribution unless, converted into exclusive frequency, distribution., , 54. To calculate median, we need to arrange the, series first, i.e., 2, 3, 4, 5, 8, 10, 12. Now,, median is equal to (n+1)/2 = 4th item, which, is 5., , 55. To calculate median, we need to arrange the, series first, i.e. 2, 3, 4, 7, 8, 10, 11, 12. Now,, median is equal to (n+1)/2 = 4.5th item,, which is average of 4th item and 5th (7+8)/2, = 7.5., , 56. To calculate lower quartile, we need to, arrange the series first, i.e. 2, 3, 4, 7, 8, 10,, 11, 12.

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67, , CBSE New Pattern ~ Economics XI (Term I), , Now, lower quartile is equal to (n+1)/4, = 2.25th item, which is one-fourth of the, difference of 3rd term and 2nd term 0.25, (4 − 3) = 0.25., , 57. To calculate upper quartile, we need to, arrange the series first, i.e. 2, 3, 4, 7, 8,, 10, 11, 12., Now, upper quartile is equal to 3(n+1)/4 =, 6.75th item, which is three-fourth of the, difference of 7th term and 6th term 0.75, (11-10) = 0.75., , 58. Mean = Sum of Observation/No. of, observations, 44 = (5 + 6 + 7 + X + 11 + 13)/6, 264 = 42 + X, X = 222, , 59. Mean of n natural numbers will be calculated, by dividing sum of n natural numbers by n., , 60. The lowest value of top 25 percent items of, the series is known as upper quartile Q 3 ., , 61. Mean can be calculated without converting, inclusive frequency distribution into exclusive, frequency distribution., , 62. Mean is not a positional average while median, is not based upon the extreme values., , 63. Mode is the value which has highest, frequency so, by observation method, highest, frequency is 28, so mode will lie in 30-40, interval., , 64. Empirical formula is derived by experimentation so, it give the closest value of mode and, not the actual value in a given series., , 65. As both the numbers 7 and 8 has repeated, most number of times in the series, both will, be considered as mode., , 70. The above series is a multi-model series as it, has more than one mode value in it, i.e., 5, 3, and 2., , 71. Mode = 3 Median – 2 Mean, = 3 × 25 – 2 × 20 = 75 – 40 = 35., , 72. Quartiles can be located by using either less, than ogive or more than ogive., , 73. Mean is calculated using all the items of the, series including extreme values., , 74. It’s a property of mean that the sum of deviations taken from actual mean is always zero., , 75. Arithmetic mean is not a positional average,, median and mode are positional averages., , 77. When actual mean and assumed mean are, equal, the distribution become symmetrical, distribution., , 78. Median can located graphically using either, of less than ogive and more than ogive or, using both cumulative curves., , 79. Median is calculated only on the basis of the, middle portion of the data and hence not, based upon all the items of the series., , 80. Mode is the most popular or recurring item, of a given series, so in a series when most of, the items are concentrated around one, particular value/item, it gives the mode value, of that given series., , 81. Mean wage, , 5, 000 + 4, 200 + 3, 000 + 4, 200 +, 8, 000 + 10, 000 + 9, 000, = ` 6, 200, =, 7, , 82. Arrange the data in either increasing or, decreasing order., , 66. In case of continuous series, quartile class is, calculated using the mentioned two formulae, for Q1 and Q 3 respectively., , 67. Decile is a partitioned value which divide, any particular series in 10 equal parts., , 68. Mode = 3Median – 2Mean, So, Mean = (3Median – Mode) / 2, , 69. The highest value of the lowest 25 percent, items is the lower quartile of a given series., , n +1, 2, 7 +1, Median =, = 4th term, 2, , Then, use formula =, ∴, , 83. Most occurring item of the series., 84. When each number is increased by ` 500,, average will also increase by ` 500., , 85. When all numbers increase by same amount,, in this case median, will also increase, by ` 500.

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68, , CBSE New Pattern ~ Economics XI (Term I), , 86. We need to first arrange the series,, , 91. Mean, , 2, 4, 6, 8, 10, 15, Median = (n+1)/2, = 3.5th term, = (6+8)/2 = 7., , =, , 87. Series 2 is an example of continuous series,, and median class is located by the formula as, (N/2)th term., , 88. By observation method as the mode value is, lying in the interval 45-60, we cannot, calculate mode using its normal formula as, the succeeding frequency is not available., , 90. Mode = 3 Median – 2 Mean, As per the given series, mean = 7.5, and median =7, So, mode = 3 × 7 – 2 × 7.5, = 21 – 15 = 6, , 38 + 46 + 54 + 56 + 62 + 64 + 67 + 67 + 77, 9, , = 59, , 92. Median is the middle most value which, divides the series into two equal parts., , 93. Median = (n+1)/2 = (9+1)/2 = 5th item., 94. If we reverse the series, median value will, still remain the same., , 95. In the above graph, 67 has appeared twice so, mode will be equal to 67., , 96. The point where two ogive curves intersect, gives us the median value on X-axis., , 99. Mode value is located on X-axis at the, intersection point of two adjacent bars, alongside the highest bar., , 100. Mean cannot be located graphically, so the, value of mean is indeterminate in this case.

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01, Economics, Economy and, Its Central Problems, Quick Revision, 1. Concept of Economics Economics is, concerned with the study of economic issues, or problems that arise because of the fact that, resources are scarce in relation to our wants, and scarce resources have alternative uses., 2. Microeconomics It is that branch of, economics which deals with economic issues, at the level of an individual., e.g., an individual person, an individual firm’s, output, an individual industry, etc., 3. Macroeconomics It is that branch of, economics, which deals with the behaviour of, the economy as a whole., It is the study of aggregates, related to the, economy’s concepts such as national income,, full employment, aggregate consumption, etc., 4. Positive Economics Positive economics is, concerned with the facts about the economy,, as they exist., e.g. positive economics deals with questions, like ‘what are the causes of unemployment’,, ‘why prices are increasing’ and so on., It simply states ‘what is’ and not ‘what ought to, be’. It is based on facts and doesn’t passes, value judgement., , 5. Normative Economics Economics as a, normative science is concerned with ‘what, ought to be’ or what should be it examines, real economic events from moral and ethical, angles and judges whether certain economic, events are desirable or not., It passes value judgement as it is not based, on facts and prescribes methods to correct, undesirable happenings., 6. Economic Problem It is the problem of, choice arising from the use of limited means, which have alternative uses for the, satisfaction of unlimited wants. This problem, arises due to the following reasons, (i) Human wants are unlimited and, continuous., (ii) Economic resources are limited., (iii) Resources have alternative uses., 7. Economy An economy is a system in which, and by which people get a living to satisfy, their wants through the processes of, production, consumption, exchange and, investment. An economy can be capitalist,, socialist or mixed, depending on the level of, government intervention in various economic, processess.

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CBSE New Pattern ~ Economics XI (Term I), , 72, 8. Central Problems of an Economy Central, problems of an economy are the problems of, fuller and efficient utilisation of resources to, satisfy maximum number of needs. These, problems are common for all economies., There are three central problems, (i) What to Produce The first central, problem encountered by an economy is to, decide which goods and services are to be, produced and in what quantities., A country has to decide whether to, produce luxury goods or necessary goods,, capital goods or consumer goods, as all the, goods cannot be produced in desired, quantities., This problem has two dimensions, Kinds of goods to be produced., Quantity of goods to be produced., ●, ●, , (ii) How to Produce It is the problem that is, related to what technique is to be used for, producing various goods and services. An, economy can choose from among the, given two techniques, Labour-intensive technique, Capital-intensive technique, ●, , ●, , (iii) For Whom to Produce It is a problem, concerning the distribution of goods and, services among factors of production in an, economy. This central problem has two, dimensions, Personal distribution of income, (among the factors)., Functional distribution of income, (within the factors)., ●, , ●, , 9. Opportunity Cost It is the cost of the value, of next best alternative foregone for the best, alternative., , Objective Questions, Multiple Choice Questions, 1. Which of the following is/are features, of resources in an economy?, (a) Limited supply, (c) Both (a) and (b), , (b) Alternative uses, (d) None of these, , 2. Scarcity requires that people must do, which of the following things?, (a), (b), (c), (d), , Trade, Cooperate, Make choices, Competition, , 3. Which of the following is/are true, about an economy?, (a) It is the system of arrangement of all, economic activities, (b) It is comprised of all the regions of a country, (c) Both (a) and (b), (d) Neither (a) nor (b), , 4. The most fundamental economic, problem is related to, (a) scarcity of resources, (b) unlimited human wants, (c) Both (a) and (b), (d) Neither (a) nor (b), , 5. Which of the following is/are not the, feature(s) of human wants?, (a) Limited, (c) Both (a) and (b), , (b) Recurring, (d) Neither (a) nor (b), , 6. According to Prof. Lionel Robbins,, means are, (a) scarce, (c) undefined, , (b) unlimited, (d) All of these, , 7. Which of is/are the reason/s for, Economic problems?, (a), (b), (c), (d), , Scarcity of resources, Alternative uses of resources, Unlimited human wants, All of the above

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CBSE New Pattern ~ Economics XI (Term I), , 8. There are many economies in the world, which are technologically advanced,, these economies further focus upon, development of latest technologies. In, this way, these economies will be able, to solve the economic problems once, for all. Choose from the options below, (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 9. Which of the following are types of, economic systems?, (a) Market Economy, (c) Mixed Economy, , (b) Planned Economy, (d) All of these, , 10. As an economic concept, scarcity, applies to ……… ., (a), (b), (c), (d), , money but not time, time but not money, Both money and time, Neither time nor money, , 11. Economics is the study of ……… ., (a) the choices we make because of scarcity of, resources, (b) the allocation of resources only, (c) the distribution of surplus goods to those in, need, (d) ways to reduce wants to eliminate the, problem of scarcity, , 12. Central problems of economy and the, problem of choice are one and the same, thing. Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 13. There are ……… central problems in, an economy., (a) two, (c) four, , (b) three, (d) None of these, , 14. Which of the central problem is related, , 73, 15. Which of the central problem is related, to distribution of income?, (a) What to produce?, (b) How to produce?, (c) For whom to produce?(d) None of these, , 16. The fact that people with higher, incomes get to consume more goods, and services addresses the … question., (a) “When”, (c) “For whom”, , (b) “Where”, (d) “How”, , 17. In the production process, if goods, worth ` 2,000 are produced by four, factors of production, then labour will, get ` 500. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 18. Which of the following is a, microeconomic concept?, (a) The reasons for the rise in general prices in, an economy, (b) Reducing inequality of income and wealth, (c) Maintaining the foreign exchange reserves, (d) None of the above, , 19. There is no degree of aggregation in, microeconomics. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 20. Which of the following is a, macroeconomic concept?, (a) The reasons why Viaan buys less orange, juice, (b) The reasons why employment decreased at, a factory, (c) The reasons for a decline in price of a good, (d) None of the above, , 21. There is ……… degree of aggregation, , to selection of techniques of production?, , in macroeconomics., , (a) What to produce?, (b) How to produce?, (c) For whom to produce? (d) None of these, , (a) constant, (c) higher, , (b) lower, (d) no

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CBSE New Pattern ~ Economics XI (Term I), , 74, 22. Microeconomics focuses on all of the, following except the, (a) buying and selling decisions by an individual, consumer and seller respectively., (b) effect of increasing the money supply in, inflation., (c) effect on tobacco sales of an increase in, the tax on cigarettes., (d) hiring decisions made by a business., , 23. All newspaper headlines are positive, statements. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 24. The following headline appeared in, th, , “Hindustan Times” dated 25 July, 2018, “Getting insurance for rain, damage cars an uphill task”. This, statement is, (a), (b), (c), (d), , positive economics, normative economics, general economics, None of the above, , 25. Central government of India, announced relief packages for migrant, labourer during the pandemic of 2020., This statement is ……… ., (a), (b), (c), (d), , normative statement, positive statement, general statement, None of the above, , 26. During the covid-19 pandemic, there, was nation wide lockdown which led to, migration of labour across states. State, government should have taken, necessary steps to reduce the migration, of people. This statement indicates, (a), (b), (c), (d), , normative statement, positive statement, general statement, None of the above, , 27. The possibility of third wave of, covid-19 pandemic can be reduced by, following covid appropriate behaviour., Identify the type of statement from, given below., (a), (b), (c), (d), , Normative statement, Positive statement, Both (a) and (b), None of the above, , 28. Economics cost is equal to, (a) accounting cost, (b) opportunity cost, (c) sum of accounting cost and opportunity, cost, (d) difference of accounting cost and, opportunity cost, , 29. In broad terms, the difference between, microeconomics and macroeconomics, is that, (a) they use different schools of thought., (b) microeconomics studies the effects of, fiscal policy on the unemployment rate, while macroeconomics does not., (c) macroeconomics studies the effects of, fiscal policy on the price of individual goods, and services whereas microeconomics, does not., (d) microeconomics studies decisions of, individual people and firms and, macroeconomics studies the entire, national economy., , 30. Studying the determination of prices in, individual markets is primarily a, concern of, (a), (b), (c), (d), , negative economics, positive economics, microeconomics, macroeconomics, , 31. Which of the following is also known as, theory of price determination?, (a), (b), (c), (d), , Microeconomics, Macroeconomics, Statistics for economics, None of the above

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CBSE New Pattern ~ Economics XI (Term I), , 32. Which of the following is also known as, theory of income determination?, (a), (b), (c), (d), , Microeconomics, Macroeconomics, Statistics for economics, None of the above, , 33. When an individual saves a part of his, income, then this is considered as a way, to meet uncertainties of future but, national savings leads to economics, slowdown. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Income statement, , 34. Theories of microeconomics and, macroeconomics are interdependent., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 35. Opportunity cost refers to which of the, , 75, 37. An entrance examination has 200, questions in total. Each correct answer, gives 1 mark with a negative mark of, 1/4 for each incorrect answer. What is, the opportunity cost of 30 incorrect, questions?, (a), (b), (c), (d), , 7.5, 30, 37.5, Can’t be determined, , 38. Which of the following is true for, micro-macro paradox?, (a) Something which is true in microeconomics, does not hold true in macroeconomics, (b) Something which does not holds true in, either microeconomics or macroeconomics, (c) Something which holds true both in, microeconomics or macroeconomics, (d) None of the above, , 39. Which of the following pair is, incorrect?, Column I, A. Mixed economy, , (i) Market forces, of demand and, supply, , B. Central problems, of an economy, , (ii) Scarcity of, resources, , C. Opportunity cost, , (iii) Cost of next, best alternative, lost, , D. Capitalist, economy, , (iv) Central, problems are, dealt by, industrialist, , following?, (a), (b), (c), (d), , Accounting cost minus the marginal benefit, Monetary costs of an activity, Highest valued alternative forgone, Accounting cost minus the marginal cost, , 36. Viaan decided to join a NCC camp this, year which required an entry fee of, ` 1,500 during the summer vacation by, not opting for usual part time job which, he used to do in other years and earn, ` 5,000. What will be the opportunity, cost in this case?, (a), (b), (c), (d), , ` 1,500, ` 5,000, ` 6,500, Can’t be determined, , Column II, , Codes, (a) A–(i), (b) B-(ii), (c) C-(iii), (d) D-(iv)

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CBSE New Pattern ~ Economics XI (Term I), , 76, 40. Choose the correct statement from the, given below., (a) In a centrally planned economy, economic, decisions are governed by profit motive as, per decision of Central Bank of the country., (b) Normative statements are those which, pass value judgement and economic, problems as they are., (c) There is limited degree of aggregation, present in microeconomics whereas, macroeconomics has greater degree of, aggregation., (d) Central problems of an economy and, problem of choice are two different issues, that only mixed economies faces., , 41. Suppose that you have to decide, between seeing a movie and going to see, a cricket match on a particular Saturday, evening. You are willing to pay ` 500 to, see the movie. You are willing to pay, ` 1,500 for the cricket match. The, opportunity cost of going to the movie is, (a) ` 1,000, (c) ` 1,500, , (b) ` 500, (d) None of these, , 42. Which of the following is/are not a, feature of a mixed economy?, (a) Modern and traditional industries working, together, (b) Public takes the leading role in the, economic activity, (c) Foreign and domestic industries working, together, (d) All of the above, , 43. Write the correct pair., Column I, , Column II, , A. Market, economy, , (i) Basis of demand and, supply, , B. Centrally, planned, economy, , (ii) Both ‘central, authority’ and ‘market, forces’ play role, , C. Mixed, economy, , (iii) Maximising social, welfare, , Codes, (a) A–(i), (c) C-(iii), , (b) B-(ii), (d) None of these, , 44. Identify the correct sequence of, alternatives given in column II by, matching them with respective terms in, column I., Column I, , Column II, , A. Economics, , (i) Theory of price, , B. Microeconomics, , (ii) Theory of, multiplier, , C. Macroeconomics, , (iii) Scarcity and, choices, , Codes, A B C, (a) (i) (ii) (iii), (c) (iii) (i) (ii), , A B C, (b) (ii) (iii) (i), (d) (ii) (i) (iii), , Assertion-Reasoning MCQs, Direction (Q.Nos. 45 to 48) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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, , 45. Assertion (A) Economics is the study, of management of human resources in, the presence of scarcity of resources., Reason (R) Resources are not scarce, always but they are scarce in relation to, the human wants., , 46. Assertion (A) Microeconomics and, macroeconomics are two branches of, economics which are studied in, isolation of each other., Reason (R) In economic sense, what, applies in microeconomics doesn’t, holds true in macroeconomics.

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CBSE New Pattern ~ Economics XI (Term I), , 47. Assertion (A) Positive science relates to, the statements which are based upon, value judgement., Reason (R) Every economic statement, can be classified either as positive, science or normative science., , 48. Assertion (A) Study of the central, problem of “how to produce” depends, upon the problem of choice of “what to, produce”., Reason (R) All the central problems of, an economy are interdependent on, each other., , Case Based MCQs, Direction Read the following case study, and answer questions 49 to 53 on the, basis of the same., Economics is about how people make, decisions given their limited resources. The, decisions are taken with regard to the basic, economic activities such as production and, consumption of goods and services and saving, and investment. However, taking decision is, not easy or simple. One must estimate the, wants and the availability of resources while, taking decisions on production of goods and, services. Similarly, distribution of the produced, goods in the society needs to be done properly., The basic problems central to any economy,, therefore, relate to production, consumption, and distribution., , 49. Unlimited human wants are the most, dominant reason behind the economic, problems. Choose from the options, below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 50. Economics is always about making, choice with given ……… ., (a) goods, (c) investment, , (b) production, (d) resources, , 77, 51. The basic central problem of an, economy is related to, (a) production, (c) distribution, , (b) consumption, (d) All of these, , 52. Assertion (A) The third economic, problem is related to the economic, activity of distribution., Reason (R) Government needs to, decide the distribution of goods, depending upon the economic situation, of the population., 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, , 53. Which of the following components, impacts the production decision in an, economy?, (a), (b), (c), (d), , Wants, Availability of resources, Both (a) and (b), Neither (a) nor (b), , Direction Read the following case study, and answer questions 54 to 58 on the, basis of the same., Economists frequently distinguish between, ‘positive’ and ‘normative’ economics. Positive, economics is concerned with the, development and testing of positive, statements about the world that are objective, and verifiable. Normative statements derive, from an opinion or a point of view. Thus, the, words ‘should’, ‘ought to’ or ‘it is better to’, frequently occur., The validity of normative statements can, never be tested. Positive statements, on the, other hand, can be tested, at least in theory, if, not always in practice.

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CBSE New Pattern ~ Economics XI (Term I), , 78, For anyone working at a management, position, it is helpful to distinguish between, positive and normative statements. Managers, and the people they work with, or are advised, by, are likely to make liberal use of both,, although normative statements may, sometimes be disguised as positive, statements. Whilst both types of statement, may deserve attention, better management, decisions are likely to result when the, distinction between them is recognised. It is, often possible to rephrase normative, statements in such a way that they become, positive ones. For example, the normative, statement ‘‘the subsidies of the European, Union’s Common Agricultural Policy (CAP), should be removed’’ could be rephrased as, the positive statement ‘‘removing CAP, subsidies will raise farm prices in developing, countries’’. The validity of the latter statement, could, in theory, be tested., Source https://www.soas.ac.uk/cedep-demos/000_P570, _IEEP_K3736-Demo/unit1/page_16.htm, , 54. Normative statements can be rephased, to make it positive statement with any, change in the actual purpose. Choose, from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 55. Assertion (A) Positive economics is, concerned with the development and, testing of positive statements., Reason (R) As the economy grows,, validity of the facts becomes difficult, with the same piece of information., , 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, , 56. ‘‘Removal of Common Agricultural, Policies related to subsidies will raise, farm prices in developing countries.’’, The above statement is a … economics., (a), (b), (c), (d), , positive, normative, Both (a) and (b), Neither (a) nor (b), , 57. The validity of normative science can, ……… be tested using any statistical, method., (a), (b), (c), (d), , always, never, sometimes, None of these, , 58. People working at management, positions use both positive and, normative statements due to which of, the following reasons?, (a) It helps in understanding different, situations that may prevail in the, organisation, (b) It helps to deal with changing market, conditions related to production, (c) It helps in understanding the impact of, economics in the economy, (d) All of the above

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CBSE New Pattern ~ Economics XI (Term I), , 79, , ANSWERS, Multiple Choice Questions, 1. (c), 11. (d), 21. (c), , 2. (c), 12. (a), 22. (b), , 3. (c), 13. (b), 23. (c), , 4. (a), 14. (b), 24. (a), , 5. (a), 15. (c), 25. (b), , 6. (a), 16. (c), 26. (a), , 7. (d), 17. (b), 27. (b), , 8. (b), 18. (b), 28. (c), , 9. (d), 19. (b), 29. (a), , 10. (c), 20. (d), , 31. (a), 41. (c), , 32. (b), 42. (d), , 33. (a), 43. (a), , 34. (a), 44. (c), , 35. (c), , 36. (c), , 37. (c), , 38. (a), , 39. (a), , 30. (c), 40. (b), , 53. (c), , 54. (c), , 55. (b), , 56. (a), , 57. (b), , 58. (d), , Assertion-Reasoning MCQs, 45. (a), , 46. (d), , 47. (d), , 48. (b), , 51. (d), , 52. (b), , Case Based MCQs, 49. (c), , 50. (d), , EXPLANATIONS, 1. Resources in any economy are not only, limited (scarcity) but also have alternative, uses i.e., one resource can be put to, different uses., , 2. It is due to scarcity of resources that we need to, make choice out of the available alternatives as, everything cannot be produced or consumed, with limited resources., , 3. An economy refers to a region of a country, which is comprised of all economic activities., , 4. Scarcity of resources is the root cause of all, economic problems in any country as the, human wants are always unlimited., , 5. Human wants are not only unlimited but also, recurring in nature, i.e. as one want gets, satisfied, another arises and it goes on., , 6. As per the scarcity definition of Prof., Robbins, means are the resources available to, satisfy unlimited human wants and it is the, general nature of resources that they are, limited or scarce., , 8. No economy can ever solve the economic, problem at the fullest as human wants are, always unlimited in relation to availability of, resources., , 10. Scarcity means when demand exceeds supply, and that applies to both money and time as, these are the resources., , 11. The fundamental study of economics resolves, around the management of scarce resources, with alternative use and managing human, wants., , 12. Problem of choice arises due to the scarcity, of resources in relation to human wants while, the central problems also arise to due to the, same reason., Thus, all central problems are problem of, choice only., , 13. There are three central problems in an, economy i.e., “What to produce”, “How to, produce” and “For whom to produce”., , 14. “How to produce” is the central problem, which studies about the techniques of, production to be used to produce the goods, in the economy., , 15. “For whom to produce” is the central, problem which talks about how to distribute, the income among various groups of the, society., , 16. The given fact is an example of ‘for whom to, produce’, as it is concerned with the, distribution of income in the economy., , 17. It is not necessary that all factors of, production involved in production process, will get equal share of income, it depends, upon the contribution of each factor.

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CBSE New Pattern ~ Economics XI (Term I), , 80, 18. Macroeconomics deals with the economics as, a whole and all of the given examples are, under the scope of macroeconomics., , 19. There is minor degree of aggregation in, microeconomics as well as an individual, market is under the scope of microeconomics., , 20. Study of problems related to an individual is, studied under microeconomics, and all of the, given examples are under the scope of, microeconomics., , 21. Macroeconomics is the study of the economy, as a whole, so everything at macroeconomics, level is aggregated., , 22. Money supply and general price level is, studied under the macroeconomics as it is, related to the economy as a whole., , 23. It is not necessary that anything that is, published in a newspaper is verified statement,, some statements can be normative as well., , 24. The given example indicates a fact which can, be varied using statistical information thus, it, is a positive statement., , 25. The given statement is true statement as it, can be verified form various sources thus, it, is a positive statement., , 26. The given statement is a suggestive, statement, thus cannot be verified, so this is, an example of normative statement., , 27. The statement is based upon the researches, so, it can be verified. This is an example of, positive statement., , 28. Economics cost is the total cost involved in, production which is sum total of accounting, cost and opportunity cost., , 29. Economics has two broad branches namely, microeconomics and macroeconomics, they, are also referred to as different school of, thoughts., , 30. Price determination in an individual market, is studied under microeconomics., , 31. Under microeconomics, price is an important, tool so, this is also referred to as theory of, price determination., , 32. Under macroeconomics, income is an, important tool so, this is also referred to as, theory of income determination., , 33. Savings at macroeconomics level is considered, as a leakage but it is considered as good at, microeconomics level. This situation is also, known as micro-macro paradox., , 34. Microeconomics and macroeconomics cannot, be studied in isolation as the theories of these, two disciplines are interrelated and have an, impact on each other., , 35. Opportunity cost is the second best alternative, which is lost due to choosing the best alternative., , 36. In this case, he has to pay ` 1,500 in addition, to ` 5,000 which he lost by not opting for the, job to join the camp, so total cost is ` 6,500., , 37. In this case, each incorrect answer leads to a, negative marking of 0.25 marks in addition to 1, mark which is lost otherwise. So, opportunity, cost in this case will be 37.5 (30 × 1.25)., , 38. Paradox means a situation of contradiction as, there is something which is true in microeconomics, but false from the point of view, of macroeconomics theory and vice-versa., , 41. Opportunity cost is the cost of second best, alternative foregone. So, in this situation, ` 1,500 is the second best alternative lost., , 42. All of the mention points are not the features, of mixed economy as this economy is, characteristicsed by existence of both private, and public sector., , 43. Market economies are those where the, decision related to economic activities are, taken by market forces of demand and supply., , 45. Study of economics revolves around, management of scarce productive resources, with unlimited human wants., , 46. Theories of microeconomics and, macroeconomics are interdependent and do, not work in isolation., , 47. Positive science relates to the statements, which can be verified and not based upon, value judgement., , 48. What to produce is the first central problem, which works as a guiding principle for the, second central problem of how to produce., , 49. In any economy, resources are not always, scarce or limited. The scarcity arises majorly, because of unlimited human wants.

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CBSE New Pattern ~ Economics XI (Term I), , 50. Any economic activity depends upon the, availability of resources. In the absence of, these resources, production levels falls,, leading to fall in income., 51. Economic problems arise due to scarcity of, resources but they are mainly concerned with, the economic activities of production,, consumption and distribution., 52. Third central problem of an economy is “for, whom to produce”, which is concerned with, distribution of income in the society or, among the people., 53. Production decisions of an economy cannot, be taken in isolation with what is required or, demanded (wants) and the availability of, resources., , 81, 54. It is true that any normative statement can be, changed into a positive statement but it will, also lead to change in the purpose for which, these statements are actually used., , 55. Verification of any facts using empirical, evidences makes any statement a, positive statement in the world of rapid, changes., , 56. The given statement can be verified with, conclusive evidences about the condition of, agriculture in the developing country, thus,, the statement is a positive statement., , 57. Normative statements can never be validated, as they are based upon value judgement and, not actual facts.

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82, , CBSE New Pattern ~ Economics XI (Term I), , 02, Consumer’s Equilibrium, (Utility Analysis and, Indifference Curve Analysis), Quick Revision, Here, MU = Marginal Utility, ∆TU = Change in Total Utility, ∆ Q = Change in Units Consumed, 7. Relationship between Total Utility (TU), and Marginal Utility (MU), (i) When MU is decreasing but remains positive, ( + ve), TU rises at a diminishing rate., (ii) When MU is zero, TU is maximum and, constant., (iii) When MU becomes negative ( − ve), TU, starts falling., Y, , O, , Mrarginal Utility, , Y, , Total Utility, , 1. Consumer An economic agent who, consumes goods and services for satisfaction, of his wants is called consumer., 2. Utility The want satisfying power of a good, is called utility., 3. Cardinal Approach to Utility It refers to, the measurement of utility in terms of, standard numericals like 1, 2, 3, etc. Under, this approach, the unit of measurement of, utility is ‘utils’., 4. Ordinal Approach to Utility It refers to the, measurement of utility in terms of, psychological satisfaction on consuming one, good in comparison to other. It can only be, ranked or ordered., 5. Total Utility (TU) It is the sum of Marginal, Utilities (MU) obtained from the consumption, of different units of a commodity., TU = MU1 +MU 2 + MU 3 +......+ MUn or, ΣMU, Here, ΣMU = Sum of Marginal Utility, 6. Marginal Utility (MU) The utility derived, from the consumption of an additional, unit of a commodity is termed as, Marginal Utility., ∆TU, or TUn − TUn −1, MU =, ∆Q, , Maximum TU, TU, , X, Quantity (units), , + ve, MU, , O, Quantity (units), , Point of, Saturation, (MU = 0), X, – ve, MU, , 8. Law of Diminishing Marginal Utility (DMU), This law states that as more and more, standard units of a commodity are, continuously consumed, the Marginal Utility, obtained from each successive unit goes on, diminishing.

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83, , CBSE New Pattern ~ Economics XI (Term I), , MUX, MUY, =, = MUM , or, PX, PY, MUX, MUY, When, MUM = 1, (ii), =, PX, PY, (i), , It is referred to as a ‘fundamental, psychological law’. This law was given by, Prof. Gossen., 9. Law of Equi-marginal Utility This law, states that the consumer maximising his total, satisfaction will allocate his income among, various commodities in such a way that the, ratio of marginal utility with price of the last, rupee spent on each commodity is equal., 10. Consumer Equilibrium It refers to the, situation in which a consumer gets maximum, satisfaction from the purchase of commodity, with given income., , Utility (utils) and Price, , or, MU x = Px ,, when MUM = 1, Here, MU x = Marginal Utility of X, Commodity, MUM = Marginal Utility of Money, Px = Price of X Commodity, , 5, 4, , Point of Equilibrium in Case of One, Commodity (MUx = PX ), R, , PX = 3, , 1, 0, –1, , MUX (measured in, terms of money), 1 2 3 4 5 6, Consumption of Commodity X (units), , X, , –2, Y, , 0, , Point of Equilibrium, , E, MUY, , 1, , 2, , 3, , 4, , 5, , 6, , (Constant) MUM, , MUX, , 7, , 8, , 100, 90, 80, 70, 60, 50, 40, 30, 20, 10, , Utility (utils) and Price, , 100, 90, 80, 70, 60, 50, 40, 30, 20, 10, , 0, 9 10 11 12 13 14 15 16 17 18 19 20, , Consumption of Commodity X (units), Consumption of Commodity Y (units), 20 19 18 17 16 15 14 13 12 11 10 9 8, , 7, , 6, , 5 4, , 3, , 2 1 0, , Consumer’s Equilibrium Two Commodities Case, (curve is based on hypothetical data), , 14. Budget Set The budget set is the collection, of all bundles that the consumer can buy with, his/her income at the prevailing market price., , 3, 2, , Y, , 13. Consumer’s Budget It is the real purchasing, power of consumer from which he can, purchase certain quantitative bundles of two, or more goods at a given price., , Y, 6, , Y, , Utility (utils) and Price, , 11. Condition of Consumer’s Equilibrium in, Case of Single Commodity In case of a, single commodity, consumer attains, equilibrium, when, MU x, = MUM ,, Px, , (iii) PX .Q X + PY .QY = M, Here, MUX = Marginal Utility of X, Commodity, MUY = Marginal Utility of, Y Commodity, PX = Price of X Commodity, PY = Price of Y Commodity, MUM = Marginal Utility of Money, , Consumer’s Equilibrium One Commodity Case, (curve is based on hypothetical data), , 12. Condition of Consumer’s Equilibrium in, Case of Two Commodities In case of two, commodities, consumer attains equilibrium,, when, , The equation of budget set is given as, PX Q X + PY Q Y ≤ M, 15. Budget Line It is a line showing different, possible combinations of two goods which, cost exactly same as consumer’s income,, given his budget and the prices of goods., Equation of budget line is given as, PXQ X + PY Q Y = M, 16. Monotonic Preference It means more is, preferred over less i.e. a consumer will prefer

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84, , CBSE New Pattern ~ Economics XI (Term I), , the bundle which carries more units of one, good and no less of the other., 17. Indifference Set It refers to a set of, combinations of goods that offer same level of, satisfaction to a consumer. It also signifies that, a consumer is indifferent across any number, of combinations in his indifference set., 18. Indifference Curve An indifference curve is, the curve which represents all those, combinations of two commodities, which give, the same level of satisfaction to a consumer., A, , 0, , 21. Marginal Rate of Substitution (MRS) It, refers to the rate at which the consumer is, willing to sacrifice one good to obtain one, more unit of the other good., Quantity of the Good Y Sacrificed, MRS XY =, Quantity of the Good X Obtained, DY, DX, 22.Condition of Consumer’s Equilibrium using, Indifference Curve Analysis According to, indifference curve analysis, a consumer is in, equilibrium at a point where the slope of the, indifference curve is equal to the slope of budget, P, line, i.e. MRS XY = X and MRS tends to fall, PY, beyond the point of equilibrium., Here, MRS XY = Marginal Rate of Substitution, between good X and good Y,, which is the slope of, indifference curve., PX, = Price ratio between good X and good, PY, Y, also called Market rate of exchange,, which is the slope of budget line., =, , B, C, D, 1, , 2, , 3 4, Good X, , 5, , X, , 6, , 19. Indifference Map A set or family of, indifference curves corresponding to different, income levels of the consumer is called, indifference map., Y, , Good Y, , IC3 > IC2 > IC1, , IC3, IC2, IC1, , O, , (iv) A higher indifference curve represents a, higher level of satisfaction because of, monotonic preferences., , Good X, , X, , Indifference Map, , 20. Properties of Indifference Curve, (i) Indifference curve slopes downwards from, left to right because to increase the, consumption of one good, the consumption, of the other good has to be reduced., (ii) Indifference curve is always convex to the, origin because marginal rate of substitution, tends to fall., , Y, , Good Y, , Good Y, , Y, 8, 7, 6, 5, 4, 3, 2, 1, , (iii) Indifference curves can never touch or, intersect each other because the same, combination of two goods cannot give two, different levels of satisfaction., , B, , QY, , f, e, , g, O, , QX, , IC3, IC2, IC1, L, , Good X, , Consumer’s Equilibrium under, Indifference Curve Analysis, , X

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Objective Questions, Multiple Choice Questions, 1. The want satisfying power of a good is, known as ……… ., (a) Utility, (c) Both (a) and (b), , (b) Usefulness, (d) None of these, , 2. Which of the following is/are the, feature(s) of utility?, (a), (b), (c), (d), , Subjective in nature, Depend upon urgency of wants, Both (a) and (b), None of the above, , 3. Utility and usefulness are one and the, same thing. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 4. Utility is most closely related to the term, (a) usefulness, (c) necessity, , (b) satisfaction, (d) None of these, , 5. Same commodity can give different, utility to different persons in the same, situation. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 6. A commodity which is useful for a, , 7. Cardinal utility approach was given by, ……… ., (a) Prof. Alfred Marshall (b) Prof. Hicks, (c) Prof. Samuelson, (d) Prof. Gossen, , 8. The unit of utility is known as ……… ., (a) Marginal utility, (c) Utils, , (b) MUM, (d) None of these, , 9. Utility analysis is criticised for one of its, assumption. According to this, utility, can be expressed in terms of, (a) cardinal number, (c) Both (a) and (b), , (b) ordinal number, (d) None of these, , 10. Law of diminishing marginal utility was, originally propounded by, (a) Prof. Alfred Marshall (b) Prof. Hicks, (c) Prof. Samuelson, (d) Prof. Gossen, , 11. Law of diminishing marginal utility is, also known as ……… ., (a), (b), (c), (d), , Fundamental law of consumption, First psychological law of consumption, Both (a) and (b), Neither (a) nor (b), , 12. Law of DMU does not hold true in the, absence of its assumptions. Choose, from the option below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 13. Which of the following is not an, , consumer must give utility. Choose, from the options below., , assumption of law of diminishing, marginal utility?, , (a), (b), (c), (d), , (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , Cardinal measurement of utility, No change in consumers income, Different price for same commodity, All of the above

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86, , CBSE New Pattern ~ Economics XI (Term I), , 14. According to Law of DMU, total utility, is the slope of marginal utility. Choose, from the option below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 15. When marginal utility is zero, total, utility will be ……… ., (a), (b), (c), (d), , maximum, maximum and constant, constant, minimum, , 16. When total utility increases at a, diminishing rate, marginal utility will be, (a), (b), (c), (d), , increasing, diminishing, constant, diminishing but positive, , 17. Which of the following are the, assumptions of Law of DMU?, (i) Continuous consumption, (ii) Standard units of consumption, (iii) Price of good and income of consumer, should remain constant, (iv) Marginal utility of money should, remain constant, (v) Quality of goods should remain the, same, Choose from the options below., (a) (i), (ii) and (iv), (c) (iii), (iv) and (v), , (b) (ii), (iii) and (iv), (d) (i), (ii), (iii), (iv) and (v), , 18. Law of DMU doesn’t hold true under, which of the following situations?, (a) Money, (c) Addictions, , (b) Hobbies, (d) All of these, , 19. Marginal utility curve of a consumer is, also consider as his, (a) indifference curve, (c) supply curve, , (b) total utility curve, (d) demand curve, , 20. If a commodity is available for free,, how many units consumer should, consume to be in equilibrium using, one-commodity case of cardinal utility, approach?, (a), (b), (c), (d), , 5 units, 10 units, Till MU becomes zero, Can’t be determined, , 21. Law of equi-marginal utility was given, by ……… ., (a), (b), (c), (d), , Prof. Alfred Marshall, Prof. Gossen, Prof. Adam Smith, None of the above, , 22. Law of equi-marginal utility is also, known as ……… ., (a), (b), (c), (d), , Law of consumption, Second law of consumption, Law of usefulness, All of the above, , 23. Law of equi-marginal utility is a law of, (a), (b), (c), (c), , production of wealth, consumption of wealth, distribution of wealth, exchange of wealth, , 24. The law of equi-marginal utility, considers price of money as, (a), (b), (c), (d), , zero, less than one, more than one, one, , 25. A consumer is in equilibrium, how will, a consumer behave if, MU x / Px < MU y / Py ?, (a) Consumer will consume more of good X and, less of good Y, (b) Consumer will consume more of good Y and, less of good X, (c) Consumer will consume more of both goods, (d) Consumer will consume less of both goods

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CBSE New Pattern ~ Economics XI (Term I), , 87, , 26. In two commodity equilibrium case, if, , 33. At the point of equilibrium, a consumer, , MU M is equal to 2, which of the, following situation it indicates?, (a), (b), (c), (d), , One util is equal to one unit of currency, One util is equal to two units of currency, Two utils are equal to one unit of currency, None of the above, , 27. Demand curve slopes downward due to, law of, (a), (b), (c), (d), , 28. Ordinal utility approach was given by, ……… ., (a) Prof. Alfred Marshall (b) Prof. Hicks, (c) Prof. Samuelson, (d) Prof. Gossen, , 29. Which of the following is the vertical, intercept of budget line?, (b) M/P y, (d) None of these, , 30. Budget constraint is a narrower concept, as compared to budget line. Choose, from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 31. Given the budget line 2x + 5y = 100,, what will be its slope?, , −5, 2, −2, (c), 5, (a), , (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 34. As per cardinal utility approach, there, , diminishing marginal utility, variable proportion, utility maximisation, None of the above, , (a) M/P x, (c) P x /P y, , always reaches to the maximum point, of total utility curve. Choose from the, options below., , 5, 2, 2, (d), 5, (b), , 32. Which of the following statements are, true about consumer’s equilibrium?, (a) It is the situation of rest, (b) There is only possible equilibrium at given, point of time, (c) Consumer’s preferences continuously, changes until it reaches equilibrium, (d) All of the above, , are ……… situations of consumer’s, equilibrium., (a) two, (c) four, , (b) three, (d) N-number, , 35. If a consumer is in equilibrium, consuming one commodity, how will he, respond to a fall in price of the, commodity?, (a), (b), (c), (d), , Decrease consumption of the commodity, Increase consumption of the commodity, Consumption will remain constant, None of the above, , 36. ……… shows various combinations of, two products that give same amount of, satisfaction., (a), (b), (c), (d), , ISO cost curve, Indifference curve, Marginal utility curve, ISO quant, , 37. An indifference curve is always drawn, for ……… commodities., (a) one, (c) three, , (b) two, (d) N-number, , 38. As per ordinal approach, utility is, ……… approach., (a) qualitative, (c) Both (a) and (b), , (b) quantitative, (d) Neither (a) nor (b), , 39. An ideal shape of indifference curve is, always, (a), (b), (c), (d), , concave to the origin, convex to the origin, L-shaped, a vertical straight line

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88, , CBSE New Pattern ~ Economics XI (Term I), , 40. The slope of indifference curve is called, as ……… ., (a), (b), (c), (d), , market rate of exchange, marginal rate of transformation, marginal rate of substitution, All of the above, , 41. Indifference curves between income and, leisure for an individual are generally, (a), (b), (c), (d), , concave to the origin, convex to the origin, negatively sloped straight lines, positively sloped straight lines, , 42. A consumer’s total expenditure is, restricted by, (a) budget constraint, (c) satisfaction, , (b) utility, (d) All of these, , 43. Indifference curve is convex to the, origin due to, (a), (b), (c), (d), , increasing marginal rate of substitution, diminishing marginal rate of substitution, increasing marginal rate of substitution, diminishing marginal rate of substitution, , 44. MRSYX is equal to which of the, following equation?, (a), (b), (c), (d), , Change in X / Change in Y, Change in Y / Change in X, PX/PY, None of the above, , 45. Which of the following are the, properties of indifference curve?, (i) Downward sloping, (ii) Convex to the origin, (iii) Higher IC represents higher satisfaction, (iv) Two IC cannot intersect each other, (v) IC cannot touch either axis, (vi) IC need not to be parallel, Choose from the options below., (a), (b), (c), (d), , (i), (ii), (iii), (iv) and (vi), (i), (ii), (iii), (iv) and (v), (i), (iii), (iv) and (vi), (i), (ii), (iii), (iv), (v) and (vi), , 46. Intersection of two indifference curves, gives same level of satisfaction. Choose, from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 47. Indifference curves are convex to the, origin because, (a) two goods are perfect substitutes, (b) two goods are perfect complementary, goods, (c) two goods are imperfect substitutes, (d) None of the above, , 48. Indifference curve for complementary, goods will be, (a), (b), (c), (d), , convex to the origin, concave to the origin, L-shaped, straight line, , 49. How will a consumer behave if, Marginal Rate of Substitution (MRS) >, Marginal Rate of Exchange (MRE)?, (a) Consume more of good X and less of good Y, (b) Consume more of good Y and less of good X, (c) Consume more of good X and same units of, good Y, (d) Consume more of good Y and same units of, good X, , 50. Write the correct pair., Column I, , Column II, , A. Cardinal, approach, , (i) MU X = MU, m, PX, , B. Ordinal, approach, , (ii) TU = MU1 + MU 2 ... MU n, , C. Budget set, , (iii) PXQ Y + PY Q X ≤ M, , D. Budget line, , (iv) PXQ X + PY Q Y = M, , Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) D – (iv)

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89, , CBSE New Pattern ~ Economics XI (Term I), , 51. An indifference curve which is drawn, by taking economic bad commodity on, both axis, will be, (a), (b), (c), (d), , convex to the origin, concave to the origin, L-shaped, straight line, , 52. Budget line can change due to, (a), (b), (c), (d), , change in income, change in price of either good X or good Y, change in price of both goods, All of the above, , 53. What will be the impact of change in, income on the budget line?, (a), (b), (c), (d), , Shifts to the right, Shifts to the left, Either (a) or (b), Neither (a) nor (b), , Rise, Fall, Remain constant, Not defined, , 55. What will be the impact of rise in price, of good Y on the budget line?, Rotate inward from vertical axis, Rotate outward from vertical axis, Rotate inward from horizontal axis, Rotate outward from horizontal axis, , 56. A set of indifference curve is known as, (a) Indifference map, (c) Indifference curve, , (a) Consumer is in equilibrium, (b) Consumer will consume more of good X and, less of good Y, (c) Consumer will consume more of good Y and, less of good X, (d) None of the above, , 59. Consumer’s equilibrium refers to the, state where a consumer reaches, maximum point of total utility., Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , below., , of good X on the slope of budget line?, , (a), (b), (c), (d), , P X = 40 and PY = 5. Which statement, suits this situation?, , 60. Choose the correct statement from, , 54. What will be the impact of fall in price, (a), (b), (c), (d), , 58. For a consumer, MRS XY = 4 and, , (b) Indifference chart, (d) None of these, , 57. A consumer is in equilibrium, how will, , (a) At the point of equilibrium, consumer, reaches the highest possible IC with given, income, (b) At the equilibrium, not all the bundle lying, on the IC are affordable, (c) IC which is beyond the budget line is not, achievable, (d) All of the above are true, , 61. Write the correct sequence of options in, column II by matching them with, options of column I., Column I, A. Exceptions to law, of diminishing, marginal utility, , (i) Music, , B. Prof. Gossen, , (ii) Indifference, curve analysis, , C. Prof. Allen and, Hicks, , (iii) Law of, diminishing, marginal utility, , a consumer behave if, MRS XY < P X /PY ?, (a) Consumer will consume more of good X and, less of good Y, (b) Consumer will consume more of good Y and, less of good X, (c) Consumer will consume more of both goods, (d) Consumer will consume less of both goods, , Column II, , Codes, A B C, (a) (i) (ii) (iii), (c) (iii) (ii) (i), , A B C, (b) (i) (iii) (ii), (d) (ii) (iii) (i)

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90, , CBSE New Pattern ~ Economics XI (Term I), , 62. Under monotonically preferred bundle,, a consumer gets more units of at least, one commodity with no less units of, other commodity or more units of both, commodities., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 63. A consumer is in equilibrium, consuming two goods when, (a) marginal utilities of different goods are, equal, (b) slope of MRS is equal to slope of budget line, (c) Both (a) and (b), (d) None of (a) and (b), , 64. At equilibrium, the slope of the, indifference curve is, (a), (b), (c), (d), , equal to the slope of budget line, greater than the slope of budget line, smaller than the slope of budget line, None of the above, , 65. At the point of equilibrium, the shape, of indifference curve must be ……… ., (a) concave, (c) straight line, , (b) convex, (d) Any of these, , Assertion-Reasoning MCQs, Direction (Q.Nos. 66 to 70) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the options, given below, (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, , 66. Assertion (A) If a consumer consumes, a good with time lag, than law of DMU, does not holds true., Reason (R) Human wants are, unlimited, as soon as one want gets, satisfied another want arises., , 67. Assertion (A) Different persons derive, different levels of utility from consumption, of similar types of commodities., , Reason (R) The want satisfying power, of any commodity is known as its, utility, which is measured in ‘utils’, under cardinal approach., , 68. Assertion (A) Consumer’s utility is the, point of ‘Satiety’ where he attains, maximum gain with given resources., Reason (R) A rational consumer always, prefers consumption of more units of, goods as compared to less units., , 69. Assertion (A) Higher IC represents, higher satisfaction due to monotonic, preferences., Reason (R) A consumer always prefers, more units of a good over less units., , 70. Assertion (A) Two indifference curves, cannot intersect each other as different IC, represents different levels of satisfactions., , Reason (R) Indifference curve for, substitute goods is downward sloping, straight line., , Case Based MCQs, Direction Read the following case study, and answer questions 71 to 75 on the basis, of the same., Ravi has fallen on hard times due to lockdown., His income per week is ` 400, spending ` 200, on food and ` 200 on all other goods. However,, he is also receiving a social allowance in the, form of ` 10 food stamps per week from, government. The coupons can be exchanged, for ` 10 worth of food, and he only has to pay, ` 5 for such coupons.

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91, , CBSE New Pattern ~ Economics XI (Term I), , 71. What will be the equation of budget, line food and non-food items, (without food coupons)?, (a), (b), (c), (d), , Price (food) + Price (non-food) = 200, Price (food) + Price (non-food) = 400, Price (food) + Price (non-food) < 400, Price (food) + Price (non-food) > 400, , 72. What will be the equation of budget, line food and non-food items, (with food coupons)?, (a), (b), (c), (d), , Price (food) + Price (non-food) = 210, Price (food) + Price (non-food) = 410, Price (food) + Price (non-food) < 410, Price (food) + Price (non-food) = 405, , 73. Preferences are considered as, monotonic when ………… ., (a), (b), (c), (d), , equal units of goods are more preferred, less units of goods are more preferred, more units of the goods are more preferred, All of the above, , 74. If Ravi is to be at equilibrium point,, what should be the condition?, (a), (b), (c), (d), , MRS = 2, MRS= 4, MUx / MU y = 2, Can’t be determined, , 75. Assertion (A) Ravi will be in a better, situation after subsidies as compared to, before subsidy situation., Reason (R) Food subsidy or coupons, has no impact on the equilibrium as the, pandemic is a rare situation., 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, , Direction Read the following case study, and answer questions 76 to 80 on the, basis of the same., In economic terms, a consumer is an, economic agent, who consumes a good or, service for satisfaction of his/her wants., Keeping in mind the said definition, every, individual consumer is a rational consumer, and understands his/her best interest., However, on certain occassions, we can, observe that people buys goods or services, without their choice or needs, i.e. influenced, by certain external factors/components. In, such situations, utility is derived by mere, purchase of goods and not from its, consumption. Also, under such cases, determining optimum level of consumption, becomes difficult. One such example can be, drawn from festive buying in India., , 76. Rationality of a consumer depends, upon which of the following factors?, (a), (b), (c), (d), , Consumer’s taste and preferences, Utility from consumption of a good, Based upon the habit of a consumer, All of the above, , 77. Which of the following statements, is/are true for utility?, (a) Utility is the want satisfying power of a, commodity, (b) Utility depends upon want and choice, (c) Same good may give different utility in, different situations, (d) All of the above, , 78. In the above case, utility should be, considered as ………… in nature., (a) qualitative, (c) Both (a) and (b), , (b) quantitative, (d) Neither (a) nor (b), , 79. When a consumer buys goods without, their need, consumer’s equilibrium, becomes .............. ., (a) static/constant, (c) unambiguous, , (b) dynamic, (d) stable

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92, , CBSE New Pattern ~ Economics XI (Term I), , 80. Assertion (A) A consumer is an, economic agent who maximises profits., Reason (R) At equilibrium point, utility, from units of goods consumed can be, negative as well., 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) Both are false, , Direction Read the following case study, and answer questions 81 to 85 on the, basis of the same., We buy many goods and services to satisfy, our wants. Using up of goods and services to, satisfy wants is called consumption and the, economic agent who buys goods and services, is called a consumer. When a consumer buys, any good or service, his/her main objective is, to get maximum satisfaction from the quantity, of the commodities purchased by spending, his/her income at the given market price. The, way a consumer maximises his/her, satisfaction from spending his/her income on, various goods and services is the subject, matter of consumer’s behaviour., , 81. Consumer’s behaviour is the study of, which of the following?, (a), (b), (c), (d), , Consumer’s equilibrium, Demand, Both (a) and (b), Neither (a) nor (b), , 82. All goods that consumer consumes, satisfy human wants. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 83. Assertion (A) When a consumer buys a, good without the need, his equilibrium, becomes unstable., Reason (R) Price of the good and, income of the consumer are the most, important components of equilibrium., 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, , 84. As the income levels increases, the, equilibrium condition ……… ., (a) remains unchanged (b) changes, (c) unstable, (d) None of these, , 85. Which approach of utility gives more, stable equilibrium condition?, (a) Cardinal, (c) Both (a) and (b), , (b) Ordinal, (d) Neither (a) nor (b), , Direction Read the following case study, and answer questions 86 to 90 on the, basis of the same., When consumers make choices about the, quantity of goods and services to consume, it, is presumed that their objective is to, maximise total utility. In maximising total, utility, the consumer faces a number of, constraints, the most important of which are, the consumer’s income and the prices of the, goods and services that the consumer wishes, to consume. The consumer’s effort to, maximise total utility, subject to these, constraints, is referred to as the consumer’s, problem. The solution to the consumer’s, problem, which entails decisions about how, much the consumer will consume of a, number of goods and services, is referred to, as consumer equilibrium.

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93, , CBSE New Pattern ~ Economics XI (Term I), , Consider the simple case of a consumer who, cares about consuming only two goods: good 1, and good 2. This consumer knows the prices of, goods 1 and 2 and has a fixed income or budget, that can be used to purchase quantities of goods, 1 and 2. The consumer will purchase quantities, of goods 1 and 2 so as to completely exhaust the, budget for such purchases. The actual quantities, purchased of each good are determined by the, condition for consumer equilibrium, which is, Marginal utility of good 1, Price of good 1, , =, , Marginal utility of good 2, Price of good 2, , = .... =, , Marginal utility of good N, Price of good N, , 86. The above equation of equilibrium given, in the case study is based upon…… ., (a) first psychological law of consumption, (b) second psychological law of consumption, (c) Both (a) and (b), (d) Neither (a) nor (b), , 87. The given law in case study is studied, under which of the following, approaches?, (a) Cardinal utility, (c) Both (a) and (b), , 88. Assertion (A) When consumers make, choices about the quantity of goods and, services to consume, it is presumed that, their objective is to maximise total utility., Reason (R) In maximising total utility,, the consumer faces a number of, constraints, the most important of, which are the consumer’s income and, the prices of the goods and services that, the consumer wishes to consume., 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, , 89. The consumer’s effort to maximise total, utility, subject to these constraints, is, referred to as ……… ., (a) utility analysis, (b) consumer’s problem, (c) Both (a) and (b), (d) None of these, , 90. Consumer should consume combination, of both goods in a such way that it, , (b) Ordinal utility, (d) Neither (a) nor (b), , (a) exhaust his entire income, (b) save a part of his income, (c) Either (a) or (b), (d) None of these, , ANSWERS, Multiple Choice Questions, 1. (a), 11. (c), 21. (b), 31. (c), 41. (d), , 2. (c), 12. (a), 22. (b), 32. (d), 42. (a), , 3. (b), 13. (c), 23. (b), 33. (b), 43. (b), , 4. (b), 14. (b), 24. (d), 34. (a), 44. (a), , 5. (a), 15. (b), 25. (b), 35. (b), 45. (d), , 6. (a), 16. (d), 26. (c), 36. (b), 46. (c), , 7. (a), 17. (d), 27. (a), 37. (b), 47. (c), , 8. (c), 18. (d), 28. (b), 38. (a), 48. (c), , 9. (a), 19. (d), 29. (b), 39. (b), 49. (a), , 10. (d), 20. (c), 30. (b), 40. (c), 50. (d), , 51. (b), 61. (b), , 52. (d), 62. (a), , 53. (c), 63. (c), , 54. (b), 64. (a), , 55. (a), 65. (b), , 56. (a), , 57. (b), , 58. (c), , 59. (c), , 60. (d), , 68. (d), , 69. (b), , 70. (b), , 73. (c), 83. (b), , 74. (d), 84. (b), , 75. (b), 85. (c), , 76. (b), 86. (b), , 77. (d), 87. (a), , 78. (c), 88. (b), , 79. (c), 89. (b), , 80. (d), 90. (a), , Assertion-Reasoning MCQs, 66. (a), , 67. (b), , Case Based MCQs, 71. (b), 81. (c), , 72. (b), 82. (b)

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94, , CBSE New Pattern ~ Economics XI (Term I), , EXPLANATIONS, 1. The consumption of any good depends upon, 2., , 3., , 4., , 5., , 6., , 7., , 8., 9., , 10., , 13., , 14., , 15., , the satisfaction that a consumer get from its, consumption. This is known as utility., Utility is wants satisfying power of a, commodity which is not only subjective but, also depends upon how urgently the good is, required., Utility is different from usefulness i.e., if any, commodity gives utility to a person, it doesn’t, mean it must be useful as well, for example, liquor consumption., Demand for any commodity depends upon, the satisfaction that a consumer derives from, it, which is further referred to as utility., This is the subjective nature of utility that it, varies from person to person even under same, situation., Utility and usefulness are different, components of a good. Any commodity which, gives utility to a consumer may not be useful, like liquor. On the other hand, milk is useful,, so it must have utility., Prof. Alfred Marshall is a well-known, economist who used the concept of cardinal, measurement of utility in his theories of, microeconomics., In cardinal utility terms, utility is measurable, in numerical units using the unit called utils., One of the major problem or criticism of, cardinal utility is the assumption of numerical, measurement of utility., Law of DMU is the most important law of, consumption which has universal applicability, and was first propounded by Prof. Gossen and, later used by Prof. Marshall., Law of DMU works under a normal situation, when it is assumed that price of the, commodity remains constant., Marginal utility measures the change in total, utility, so MU is the slope of TU and not, otherwise., MU measure the rate of change in TU, so, when MU becomes zero net change in TU, also becomes zero, making its value maximum, and constant., , 16. As per the relationship between total utility, and marginal utility, when MU diminishes, but remains positive, TU increases at a, diminishing rate., 20. When a commodity is available for free, its, price becomes zero. Thus, consumer will, consume until he reaches a situation where, his MU becomes equal to zero to be in the, state of equilibrium., 21. This law of equi-marginal utility is also, given by Prof. Gossen, which is applicable, on more than one commodity case., 24. It is an important assumption of law of, equi-marginal utility that it assumes, marginal utility of money to be equal to 1, i.e., 1 unit of a currency is equal to 1 unit of, utils., , 25. When MU x /P x is less than MU y /P y ,, , 26., , 28., , 29., , 30., 31., , 33., , consumer gets more satisfaction from, consumption of good y as compared to good, x, thus, he will consume more of good y, and less of good x., Marginal utility of money measures the, money worth of utils, thus in this case, MUm, means we get 2 utils by paying one rupee., Another approach of utility is ordinal, approach which takes utility as qualitative, measure. The approach was given by Prof., Allen and Prof. Hicks., Budget line is an important concept of, ordinal approach of equilibrium, in Y-axis it, starts from a point which represents, maximum units of consumption of good Y,, calculated using the given formula., Budget constraint is the broader concept, which is comprised of budget line., Slope of budget line is equal to price ratio, i.e., P x /P y , thus in the above equation, P x = 2 and P y = 5 and slope = -2/5, minus, sign signifies the inverse relation between, price and demand., Maximum point of TU curve represents the, point of saturation and it is not necessary, that consumer reaches the maximum point, at his equilibrium situation.

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95, , CBSE New Pattern ~ Economics XI (Term I), , 34. According to cardinal approach of, , 35., , 36., , 37., , 38., , 39., , 40., , 41., , 42., , 43., , 46., , 47., , 48., , consumer’s equilibrium, there are two, situations of equilibrium, namely, one-commodity equilibrium and two or more, commodity equilibrium., When the price of a commodity falls,, marginal utility becomes greater than price of, the commodity so, consumer will consume, more units with his given resources., Ordinal approach uses the concept of, indifference curve which represent different, combination of goods giving same, satisfaction., An indifference curve represents various, combinations of two goods giving same level, of satisfaction., As per ordinal approach, utility cannot be, measured in numerical terms as it is, qualitative in nature., Indifference curve can take various shapes, but convex shape is considered as the ideal, shape., Marginal rate of substitution is the slope of, indifference curve which measures the rate at, which the consumer is willing to exchange, one commodity for the other., As income and leisure are substitutes of each, other, the indifference curve between these, two will be downward sloping straight line., Budget constraint represents the maximum, income the consumer has, which he can, spent of consumption of two goods., The convex shape of IC is due to, diminishing MRS which indicates that, consumer is willing to sacrifice lesser and, lesser units of good Y for each additional unit, of good X., If two indifference curves intersect each, other, it indicates equal level of satisfaction, but as per the property of IC, two IC can, never intersect each other., While drawing an indifference curve, it is, assumed that the goods are not substitutes of, each other rather they are consumed together, in different proportions., Complementary goods are consumed, together in a fixed proportion which makes, the indifference curve L-shaped., , 49. MRS > MRE means that consumer is getting, more satisfaction from consumption of good, X. So, he will consume more of good X and, less of good Y., 51. Indifference curve is drawn with the, assumption that both goods are economic, good, if this assumption is lifted, IC becomes, concave to the origin., 53. Change in income leads to shift in the budget, line either to the right or to the left, depending on increase in income or decrease, in income., 54. Slope of budget line is P x /P y , thus if price of, , 55., , 56., , 57., , 58., , 59., , 63., , 64., , 65., , 66., , good X falls then slope of budget line will, also fall., With rise in price of good Y, slope of budget, line rises, leading to inward rotation from, vertical axis., Indifference map represents the family of, indifference curves with different levels of, satisfaction., When MRS is less than MRE, consumer gets, more satisfaction from consumption of good, Y, leading to increase in consumption of, good Y by reducing consumption of good X., As per the given equation, MRS is less than, the ratio of prices, which means consumer, will consume more of good Y and less of, good X., It is not necessary that the consumer reaches, the maximum point on total utility curve to, be in equilibrium., Equilibrium point depends upon the income, of the consumer., The given two statements are condition of, consumer’s equilibrium under cardinal and, ordinal approach respectively., The condition of equilibrium under ordinal, approach requires that the slope of budget, line becomes equal to slope of indifference, curve., The additional condition of equilibrium, under ordinal approach is the convex shape, of IC, otherwise equilibrium will not be a, stable equilibrium., For operation of law of DMU, continuity of, consumption is important as the human, wants are unlimited and recurring.

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96, , CBSE New Pattern ~ Economics XI (Term I), , 67. Different consumers get different utility from, , 68., , 69., , 70., 71., , 72., , 73., 74., , 75., , 76., , 78., , same good makes the utility subjective in, nature i.e., depends upon the user of the good., Point of satiety is the point where additional, utility becomes zero and total utility becomes, maximum. It need not be the point of, equilibrium., An indifference map represents different levels, of satisfaction due to monotonic preferences as, on a higher IC, consumer always get more, goods., Different IC gives different levels of satisfaction, thus two IC cannot intersect each other., Budget line is the line which represents, expenditure on two goods which is equal to, the income of the consumer., In this case as Ravi is getting a subsidy of, ` 10, so, his income increases by the same, amount, leading to change in this equation of, budget line., According to monotonic preference, more units, of a good is always preferred over less units., As the price of the commodity is not given in, the above case so, we cannot determine the, equilibrium situation., Food subsidies has a positive impact on the, equilibrium as it increases the income leading, to more consumption of goods., Rationality means the maximisation of benefits, with the given resources at a particular point, of time., Utility is both qualitative as well as, quantitative in nature depending upon the, approaches of utility., , 79. Equilibrium is stable only when the good, 80., , 81., , 82., , 83., , 84., , 85., , 87., , 88., , 89., , 90., , consumed is an useful good and not, something which is not required., A consumer is the person who consumes, various good for satisfaction of wants, while, at equilibrium point, utility cannot be, negative., Consumer’s behaviour is the study of both, equilibrium and demand as they are, inter-related concepts., It is not necessary that whatever good a, consumer consumes, satisfy his/her wants like, unhealthy air due to burning of crackers., An equilibrium will only be stable when the, goods purchased satisfies human wants for, the time being., With the change in the income levels of a, consumer, its equilibrium situation also, change accordingly., Equilibrium conditions of both the, approaches of equilibrium are stable though, they are based upon different components., The marginal utility approach is a cardinal, utility analysis which considers utility as, quantitative in nature., Maximisation of utility is the most important, objective of a rational consumer with a variety, of constraints including income and price., Consumer’s problem or behaviours is the, study of problems related to a consumer at a, given period of time., A consumer should spend his income on, consumption of two goods in such a way, that he completely use his income.

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03, Demand and Price, Elasticity of Demand, Quick Revision, , 3. Market Demand The demand by all the, consumers in the market at various prices of a, commodity is referred to as market demand., 4. Quantity Demanded It refers to a specific, quantity which a consumer purchases against a, specific price of a commodity., 5. Demand Schedule The tabular, representation of price and quantity demanded, is referred to as the demand schedule., 6. Individual Demand Schedule It refers to, the demand schedule of an individual buyer., It shows quantities of a commodity, which an individual buyer will buy at, different possible prices of that commodity, at, a point of time., 7. Market Demand Schedule It refers to the, demand schedule of a commodity by all the, consumers in the market. It shows different, quantities of a commodity which the, consumers intend to buy at different possible, prices of that commodity, at a point of time., , 9. Individual Demand Curve It shows, demand for a commodity made by an, individual at different prices at a point of time,, or we can say, it is a graphical presentation of, an individual demand schedule., 10. Market Demand Curve It shows various, quantities of a commodity that all the buyers, in the market are ready to buy at different, possible prices of the commodity at a point of, time, or we can say, it is graphical, presentation of market demand schedule., 11. Slope of Demand Curve Demand curve, normally slopes downward, indicating, negative relationship between price of a, commodity and its quantity demanded., Y, , D, , P1, ∆P, P2, O, , {, {, , 2. Individual Demand It shows the quantities, of a commodity demanded by an individual, consumer at various prices of that commodity., , 8. Demand Curve It is the graphical, presentation of price and quantity demanded., , Price (`), , 1. Demand It is defined as the quantity of a, commodity that a consumer wishes to, purchase in the market in a given period of, time at various prices of that commodity., , ∆Q, Q1, Q2, Quantity (units), , D, X, , Slope of Demand Curve, Change in Price, ∆P, = (−), = ( −), ∆Q, Change in Quantity Demanded

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12. Demand Function It shows the relationship, between demand for a commodity and its, various determinants., 13. Individual Demand Function It shows how, demand for a commodity, by an individual, consumer in the market, is related to its, various determinants of demand. It is, expressed as, Dx = f ( Px, Pr, Y, T, E ), 14. Market Demand Function It shows how, market demand or aggregate demand for a, commodity in the market, is related to its, determinants of market demand. It is, expressed as,, Dx = f(Px, Pr , Y, T, E, D, S), 15. Determinants of Demand The factors, which affect the demand of a commodity are, given below, (i), (ii), (iii), (iv), (v), , Price of the commodity ( Px ), Income of the consumers (Y ), Price of related goods (Pr), Tastes and preferences of the consumers (T ), Expectations relating to change in, availability of the good ( E ), (vi) Distribution of income ( D ), (vii) Size of population ( S ), , 16. Law of Demand Law of demand states that, other things remaining the same, when price, of any commodity increases its demand falls, and when price falls its demand increases., It shows inverse relationship between price of, a commodity and its quantity demanded., 17. Assumptions of the Law of Demand, (i) Tastes and preferences of the consumers, remain constant., (ii) There is no change in the income of, consumer., (iii) Prices of the related goods do not change., (iv) No expectation of further changes in the, availability of a commodity., (v) No change in the distribution of income., (vi) No change in population., , CBSE New Pattern ~ Economics XI (Term I), , 18. Reasons for Applicability of Law of Demand, (i), (ii), (iv), (v), , Law of Diminishing Marginal Utility (DMU), Income effect, (iii) Substitution effect, Size of consumer group, Number of uses of the goods, , 19. Exceptions to the Law of Demand, (i), (ii), (iii), (iv), (v), , Giffen goods, Conspicuous consumption, Conspicuous necessities, Expected changes in price, Ignorance, , 20. Movement Along the Demand Curve or, Change in Quantity Demanded A movement, along the demand curve is caused by a change, in quantity demanded of a good in response to, change in the price of the good, other things, remaining constant. Movement along a demand, curve can take the following forms, (i) Extension of Demand It refers to rise in, demand due to fall in the price of good. In, this situation, there will be a downward/, rightward movement along the same, demand curve., Y, , D, A, , P, P1, O, , B, D, Q Q1, Quantity (units), , X, , (ii) Contraction of Demand Fall in demand, due to increase in price is termed as, contraction of demand. In this situation,, there will be an upward/leftward movement, along the same demand curve., Y, Price (`), , 98, , P1, P, , O, , D, B, A, D, Q1 Q, Quantity (units), , X

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CBSE New Pattern ~ Economics XI (Term I), , 21. Shifts in Demand Curve or Change in, Demand A shift in the demand curve is, caused by change in demand due to the, change in factors other than price of the good., A shift in the demand curve can take the, following two forms, (i) Increase in Demand When demand of a, commodity rises due to factors other than, price, it is called increase in demand. It is, indicated by a shift in demand curve from, left to right. i.e. from DD to D1 D1 ., Y, , Price (`), , D1, D, D2, P, , C, , A, , B, , D1, D, D2, X, O, Q2 Q Q 1, Quantity (units), Increase and Decrease in Demand, , (ii) Decrease in Demand When demand of a, commodity falls due to factors other than, price, it is called decrease in demand. It is, indicated by a shift in demand curve from, right to left. i.e. from DD to D2 D2 ., , 22. Related Goods These are of two types, as follows, (i) Substitute Goods These are those goods, which can be used in place of each other,, such as tea and coffee, ball-pen and ink, pen, etc., In case of such goods, increase in the price, of one causes increase in demand for other, and vice-versa., (ii) Complementary Goods These are those, goods which cannot be used separately., Such goods complete the demand for each, other and are therefore demanded together., Pen and ink or bread and butter are some, examples. In case of such goods, a fall in the, price of one causes increase in the demand, of the other and vice-versa., , 99, 23. Normal Goods These are the goods for, which the demand is directly related to, consumer’s income. Other things remaining, constant, demand for these goods increases in, response to increase in consumer’s income., e.g. full cream milk, pulses, grains, etc., 24. Inferior Goods These are the goods for, which the demand is inversely related to, consumer’s income. Other things remaining, constant, demand for these decreases in, response to increase in income., e.g. coarse cereals, skimmed milk, etc., 25. Elasticity of Demand It refers to the degree, of responsiveness in demand due to change in, the price of a commodity or income of, consumers or price of related goods., 26. Price Elasticity of Demand ( E d ) It, measures the responsiveness of quantity, demanded of a good due to change in its price., 27. Percentage Method of Measuring, Price Elasticity of Demand, Ed =, or, , ( −), , % Change in Quantity Demanded, % Change in Price, , ∆Q, P, ×, ∆P Q, , Here, P = Initial Price; Q = Initial Quantity, ∆P = Change in Price; ∆Q = Change in Quantity, 28. Factors Affecting Price Elasticity, of Demand, (i), (ii), (iii), (iv), (v), (vi), , Availability of substitutes, Postponement of consumption, Different uses of the commodity, Time period, Habits, Proportion of income spent on the goods, , 29. Perfectly Elastic Demand [Ed = ∞ ] Perfectly, elastic demand implies infinite change in, quantity demanded as a result of no or, negligible change in price.

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CBSE New Pattern ~ Economics XI (Term I), , In this case, demand curve is horizontal,, i.e. parallel to X-axis., 30. Perfectly Inelastic Demand [Ed = 0] A, perfectly inelastic demand is one in which the, change in price causes no change in the, quantity demanded. In this case, demand, curve is vertical i.e. parallel to Y-axis., 31. Unitary Elastic Demand [E d = 1] Unitary, elastic demand is one in which the percentage, change in quantity demanded is equal to the, percentage change in price., In this case, demand curve extends towards, the X-axis and Y-axis in a uniform manner, without touching them., 32. Less than Unitary Elastic Demand [E d < 1], Less than unitary elastic demand is one in, which the percentage change in quantity, , demanded is less than that of percentage, change in price. In this case, demand curve is, steeper and originates from X -axis., 33. More than Unitary Elastic Demand [E d < 1], More than unitary elastic demand is one in, which the percentage change in quantity, demanded exceeds the percentage change in, price. In this case, demand curve is flatter and, originates from Y -axis., Y, ED=∞, , Price (in `), , 100, , ED>1, ED<1, , ED=1, X, ED=0 Q, Quantity (in units), Graph Depicting Different Elasticities of Demand, , Objective Questions, Multiple Choice Questions, 1. Demand for a good depends on which, of the following factor(s)?, (a) Willingness to pay, (c) Price of the good, , (b) Ability to pay, (d) All of these, , 2. Demand is same as wants of a, consumer. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 3. Which of the following is/are, determinants of demand?, (a), (b), (c), (d), , Price of the good, Income of the consumer, Price of related goods, All of the above, , 4. The relationship between demand for a, good and its own price is known as, ............ ., (a) Quantity demanded (b) Demand, (c) Composite demand (d) None of these, , 5. What will be the impact of fall in, income of the good on the demand for, an inferior good?, (a), (b), (c), (d), , Rise in demand, Fall in demand, Demand remains constant, None of the above, , 6. When demand for a good depends, upon the demand for the other, it is, known as, (a), (b), (c), (d), , Joint demand, Composite demand, Derived demand, None of the above

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CBSE New Pattern ~ Economics XI (Term I), , 101, , 7. When two goods are consumed together, , 14. Law of demand assumes other factors, , to get satisfaction, it is referred to as ...... ., , constant in a given demand function., Choose from the options below., , (a), (b), (c), (d), , Joint demand, Composite demand, Derived demand, None of the above, , 8. Which of the following are an example, (b) Tea and Coffee, (d) None of these, , 9. With rise in price of good X, demand, for good Y also increase, then how, these goods are related?, (a), (b), (c), (d), , Substitute goods, Complementary goods, Inferior goods, Giffen goods, , 10. Complementary goods are always, demanded at the same proportion., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 11. With rise in price of good X, demand, for good Y also decrease, then how, these goods are related?, (a), (b), (c), (d), , Substitute goods, Complementary goods, Inferior goods, Giffen goods, , 12. Law of demand was propounded by, ............ ., (a), (b), (c), (d), , Prof. Adam Smith, Prof. Alfred Marshall, Prof. Gossen, Prof. Pigeou, , 13. Law of demand is an ............ approach., (a), (b), (c), (d), , qualitative, quantitative, Both (a) and (b), Neither (a) nor (b), , True, False, Partially true, Incomplete statement, , 15. Which of the following statements are, , of derived demand?, (a) Car and Petrol, (c) Building and Brick, , (a), (b), (c), (d), , true?, (a) Market demand curve is the vertical, summation of individual demand curves, (b) Market demand curve is the horizontal, summation of individual demand curves, (c) Market demand curve is steeper than, individual demand curves, (d) None of the above, , 16. Movement along the demand curve is, also known as ............ ., (a), (b), (c), (d), , Change in demand, Change in quantity demanded, Change in demand of related goods, None of the above, , 17. Shift in the demand curve is also known, as ............ ., (a), (b), (c), (d), , Change in demand, Change in quantity demanded, Change in demand of related goods, None of the above, , 18. When more quantity is demanded at, the same price, it indicates expansion in, demand. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 19. Which of the following is/are, components of change in demand?, (i) Increase in demand, (ii) Decrease in demand, (iii) Contraction in demand, (iv) Expansion in demand

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CBSE New Pattern ~ Economics XI (Term I), , 102, Choose from the options below., (a) (i) and (iii), (c) (i) and (ii), , The movement from point A to point B, is known as, , (b) (ii) and (iv), (d) (iii) and (iv), , (a), (b), (c), (d), , 20. Slope of demand curve is equal to, ∆P, ∆Q, ∆Q, (c), ∆P, , −∆P, ∆Q, −∆Q, (d), ∆P, , (a), , (b), , Expansion in the quantity demanded, Contraction in quantity demanded, Increase in demand, Decrease in demand, , 25. Refer to the diagram in Q. No. 24., The movement from point A to point C, is known as, , 21. Which of the following is/are, , (a), (b), (c), (d), , components of change in quantity, demanded?, (i) Increase in demand, (ii) Decrease in demand, (iii) Contraction in demand, (iv) Expansion in demand, , Expansion in the quantity demand, Contraction in quantity demand, Increase in demand, Decrease in demand, , 26. See the diagram given below., Y, D1, , Choose from the options below., Price (in `), , (a) (i) and (iii), (c) (i) and (ii), , D, , (b) (ii) and (iv), (d) (iii) and (iv), , 22. Non-linear demand curve is drawn as, (a), (b), (c), (d), , curve is, , 24. See the diagram given below., , Shift in demand curve from DD to D2D2, is known as, , Demand Curve, D, , Price (in `), , (a), (b), (c), (d), , C, A, B, , Q2, , Q, , Q1, , Quantity demanded (in units), , Expansion in the quantity demand, Contraction in quantity demand, Increase in demand, Decrease in demand, , 28. Increase in price of substitute goods, , D, , O, , Expansion in the quantity demand, Contraction in quantity demand, Increase in demand, Decrease in demand, , 27. Refer to the diagram given in Q.No.26., , Y, , P1, , D2, X, Q1, Q2 Q, Quantity demanded (in units), , Shift in demand curve from DD to D1D1, is know as, (a), (b), (c), (d), , (b) decreasing, (d) infinity, , P, , D1, , O, , 23. Slope of a downward sloping demand, , P2, , P, , D, , downward sloping straight line, upward sloping straight line, rectangular hyperbola, None of the above, , (a) increasing, (c) constant, , D2, , leads to expansion of demand., Choose from the options below., X, , (a) True, (b) False, (c) Partially true, (d) Incomplete statement

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CBSE New Pattern ~ Economics XI (Term I), , 29. With decrease in price of substitute goods,, demand for the concerned goodwill, (a), (b), (c), (d), , shift to the right, shift to the left, move downward along demand curve, move upward along demand curve, , 30. Which of the following are exceptions, of law of demand?, (a) Giffen goods, (c) Both (a) and (b), , (b) Addictions, (d) Neither (a) nor (b), , 31. Write the correct sequence of options in, column II by matching them with, options of column I., Column I, A. Normal, goods, , B. Inferior, goods, C. Giffen, goods, , Column II, (i) Its demand has an, inverse relation with, income of the, consumer., (ii) Its demand is not, affected by change in, price., (iii) Its demand is inversely, related with its price., , D. Necessities (iv) Its demand is directly, related with its price., Codes, A B C D, (a) (i) (ii) (iii) (iv), (c) (iii) (i) (iv) (ii), , A B C D, (b) (ii) (iii) (iv) (i), (d) (iii) (iv) (i) (ii), , 32. Identify the correct sequence of, alternatives given in column II by, matching them with respective terms in, column I., Column I, A. Movement along, demand curve, , Column II, (i) Decrease in, demand, , B. Shift in demand, curve, , (ii) Extension in, demand, , C. Normal goods, , (iii) Negative income, effect, , D. Inferior goods, , (iv) Positive income, effect, , 103, Codes, A B C D, (a) (ii) (i) (iv) (iii), (c) (i) (iii) (ii) (iv), , A B C D, (b) (iii) (ii) (i) (iv), (d) (iv) (ii) (iii) (i), , 33. Write the correct pair., Column I, , Column II, , A. Giffen goods, , (i) Automobiles, , B. Veblen goods, , (ii) Low quality bread, , C. Conspicuous, necessities, , (iii) Diamonds, , D. Necessities, , (iv) Medicines, , Codes, (a) A-(i), (c) C-(iii), , (b) B-(ii), (d) D-(iv), , 34. Law of demand is based on which of, the following laws?, (a), (b), (c), (d), , Law of indifference curve, Law of diminishing marginal utility, Law of variable proportion, None of the above, , 35. In case of inferior goods like bajra, a, fall in its price tends to, (a), (b), (c), (d), , make the demand remain constant, reduce the demand, increase the demand, change the demand in an abnormal way, , 36. A good can be normal for one person, and inferior for the other person at the, same time. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 37. Which of the following is an, assumption of law of demand?, (a), (b), (c), (d), , Price of the commodity should not change, Quantity of the good should not change, Income of the consumer should not change, None of the above

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CBSE New Pattern ~ Economics XI (Term I), , 104, 38. All of these are a cause of shift in, demand except, (a), (b), (c), (d), , change in income, change in price, change in fashion, change in price of substitute goods, , 39. Which of the following factors causes, demand curve to be downward sloping?, (i) Law of DMU, (ii) Substitution effect, (iii) Income effect, (iv) Number of uses of a good, (v) Number of buyers in the market, Choose from the options below., (a), (b), (c), (d), , (i), (ii), (iii) and (v), (i), (ii), (iv) and (v), (ii), (iii), (iv) and (v), (i), (ii), (iii), (iv) and (v), , 44. What is the elasticity of demand on a, rectangular hyperbola shaped demand, curve?, (a), (b), (c), (d), , Perfectly elastic demand, Perfectly inelastic demand, Unitary elastic demand, Elastic demand, , 45. What will be the elasticity of demand, for school uniform?, (a), (b), (c), (d), , Perfectly elastic, Perfectly inelastic, Unitary elastic, Inelastic, , 46. Price elasticity of demand is calculated, as, , ∆Q P, ⋅, ∆P Q, (c) %∆ in QD /%∆P, , (a), , 40. Elasticity of demand is an ............, , 47. See the diagram below., , approach., , Y, , (b) qualitative, (d) None of these, Price, , (a) quantitative, (c) utility, , 41. Elasticity of demand and slope of, demand curve are inversely related., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 42. Price elasticity of demand measures, relation between, (a), (b), (c), (d), , ∆P Q, ⋅, ∆Q P, (d) Both (a) and (c), , (b), , quantity demanded and price, demand and income of the consumer, demand and price of related good, All of the above, , D, X, , Quantity, , It shows, (a), (b), (c), (d), , inelastic demand, elastic demand, unitary elastic demand, None of the above, , 48. See the diagram below., Y, , of demand., (a), (b), (c), (d), , three, four, five, None of the above, , Price, , 43. There are ............ degrees of elasticity, D, , Quantity, , X

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CBSE New Pattern ~ Economics XI (Term I), , It shows, (a) inelastic demand, (b) elastic demand, (c) unitary elastic demand, (d) None of these, , 49. See the diagram below., Y, , 105, (ii) Demand curve for a perfectly, inelastic demand is vertical line, parallel to Y-axis., (iii) Demand for luxury goods is, highly elastic., (a) (i) and (ii), (c) (i) and (iii), , D, , (b) (ii) and (iii), (d) Only (iii), , 53. Which of the below statement is true, Price, , about elasticity of demand?, , X, , Quantity, , It shows, (a), (b), (c), (d), , inelastic demand, elastic demand, unitary elastic demand, perfectly inelastic demand, , 54. If the price elasticity of demand is 2,, , 50. If a 10% rise in price of good X leads to, 20% fall in its quantity demanded, its, elasticity of demand is, (a) elastic, (c) unitary elastic, , (b) inelastic, (d) perfectly inelastic, , 51. Choose the correct pair., Column I, , then a 10 per cent increase in the price, results in a .............. decrease in its, quantity demanded., (a), (b), (c), (d), , 5%, 10%, 20%, 25%, , 55. The price elasticity of demand ranges, Column II, , A. Perfectly inelastic, demand curve, , (i) Horizontal, straight line, , B. Unit elastic, demand curve, , (ii) Rectangular, hyperbola, , C. Perfectly elastic, demand curve, , (iii) Vertical, straight line, , Codes, (a) A-(i), (c) C-(iii), , (a) The units used to measure price but not to, measure quantity, (b) The units used to measure price as well as, quantity, (c) The units used to measure quantity but not, to measure price, (d) Neither the units used to measure price nor, the units used to measure quantity, , (b) B-(ii), (d) None of these, , 52. Which of the following statements, is/are not true about elasticity of, demand?, (i) Demand curve for a perfectly, elastic demand is horizontal line, parallel to X-axis., , between, (a), (b), (c), (d), , -1 to 0, 0 to 1, 0 to infinity, Negative infinity to infinity, , 56. If the price elasticity of demand ranges, between 0 to 1, demand is, (a), (b), (c), (d), , inelastic, elastic, perfectly elastic, unit elastic, , 57. On a straight-line downward sloping, demand curve, the maximum elasticity, of demand occurs at, (a), (b), (c), (d), , vertical intercept of demand curve, horizontal intercept of demand curve, at the midpoint of demand curve, on both vertical and horizontal intercepts

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CBSE New Pattern ~ Economics XI (Term I), , 106, 58. If a good has multiple substitute goods, available, its elasticity will be, (a) equal to zero, (c) equal to one, , (b) less than one, (d) more than one, , 59. Of the given goods below, demand is, expected to be inelastic for, (a) alcohol, (c) uniform, , (b) car, (d) pizza, , 60. If a consumer spends larger proportion, of his income on a good, its demand, will be, (a), (b), (c), (d), , elastic, inelastic, unit elastic, cannot be defined, , 61. The demand for food is more elastic, under which group of people?, (a), (b), (c), (d), , Who has low level of income, Who has moderate level of income, Who has high level of income, Who lives in urban areas, , 62. Elasticity of demand for good X is half, of elasticity of demand for good Y. If, 10% fall in price of good Y leads to 20%, rise in its quantity demand, what will be, the elasticity of demand of good X?, (a) 2, (c) 0.5, , (b) 1, (d) 0, , 63. Which of the below statements is/are, true?, (i) Price elasticity of demand for, normal goods is higher than, inferior goods., (ii) Elasticity of demand for giffen, goods is perfectly elastic., (iii) Liner demand curve has higher, elasticity of demand as compared, to non-linear demand curve., Choose from the options below., (a) (i) and (ii), (c) (i) and (iii), , (b) (ii) and (iii), (d) Only (i), , 64. Due to 15% rise in price, demand, changes from 100 to 80 units. Price, elasticity of demand will be equal to, (a) 1, , (b) 1.33, , (c) 1.5, , (d) 2, , 65. If price elasticity of demand is 2, a 10%, fall in price of good leads to increase in, demand by, (a) 10%, , (b) 15%, , (c) 20%, , (d) 25%, , Assertion-Reasoning MCQs, Direction (Q.Nos. 66 to 70) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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, , 66. Assertion (A) Demand for durable, goods has higher elasticity of demand., Reason (R) Demand for durable goods, can be postponed once they are, demanded at present., , 67. Assertion (A) Demand curve shows the, inverse relation between own price of a, good and its quantity demanded., Reason (R) Law of diminishing, marginal utility advocates that, consumer gets lesser satisfaction for, each additional units consumed., , 68. Assertion (A) Demand curve is, downward sloping as consumer is, willing to pay lesser and lesser for each, additional unit consumed as he/she gets, lesser utility for each additional unit, consumed., Reason (R) With fall in price of a good,, consumer’s purchasing power increases., So, he/she consumes more units.

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CBSE New Pattern ~ Economics XI (Term I), , 69. Assertion (a) On a straight-line, downward sloping demand curve,, elasticity of demand below the midpoint, of demand curve is more than one., Reason (R) On a linear demand curve,, elasticity of demand varies from zero to, infinity., , 70. Assertion (A) A commodity which can, be put to several use, is price inelastic., Reason (R) As price falls, number of, buyers increase in the market., , Case Based MCQs, Direction Read the following case study, and answer questions 71 to 75 on the, basis of the same., Salt has no close substitute and moreover, a, household has to share a negligible part of his, entire budget. Therefore, even in spite of, increase in price of salt, its demand will not, be affected., However, demand for a particular brand of, toothpaste is comparatively more elastic as, there are many brands of toothpaste available, in the market, so the consumers can switch, over to any other brand in case of hike in the, price of a particular brand of toothpaste., , 71. The elasticity of demand of salt is …... ., (a) elastic, (c) perfectly elastic, , (b) inelastic, (d) perfectly inelastic, , 72. ……… makes demand for salt inelastic., (a), (b), (c), (d), , Necessity, Non-availability of substitute, Both (a) and (b), None of the above, , 73. Why demand for toothpaste is elastic in, nature?, (a), (b), (c), (d), , It is not a necessity of life, It has a competitive market, Consumer has a preference for it, All of the above, , 107, 74. Which of the following is not a, determinant of elasticity of demand?, (a), (b), (c), (d), , Availability of substitutes, Nature of the good, Number of buyers in the market, Expenditure on a commodity, , 75. Assertion (A) Any good which has, inelastic demand must be necessity of life., Reason (R) Elastic goods are highly, price sensitive in nature as compared to, inelastic goods., 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, , Direction Read the following case study, and answer questions 76 to 80 on the, basis of the same., Year 2020 has witnessed many ups and downs,, there were natural calamities around the globe,, political tensions and what not., The outbeeak of coronavirus pandemic had, led to worldwide lockdown for several, months., The world almost stopped during April, 2020., India is also not untouched with the impact of, pandemic., Many people lost their jobs during this time,, specially migrant workers. Government, announced relief packages but still it didn’t, boost enough demand., , 76. What will be the impact on the, consumption demand of necessity goods, during the pandemic?, (a) Demand curve shifts to the right, (b) Demand curve shifts to the left, (c) No change in demand curve, (d) Downward movement along the demand curve

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CBSE New Pattern ~ Economics XI (Term I), , 108, 77. People loose their jobs during the, nationwide lockdown, how will this, impact the demand curve for inferior, goods?, (a) Rightward shift in demand curve, (b) Leftward shift in demand curve, (c) Downward movement along demand curve, (d) Upward movement along demand curve, , 78. How should the demand be affected, due to the relief package announced by, the government?, (a), (b), (c), (d), , Increase in demand, Expansion in quantity demanded, Decrease in demand, Contraction in quantity demanded, , 79. Demand for automobile industry, decreased inspite of decreasing price, during pandemic. This is referred to as, ……… ., (a), (b), (c), (d), , Contraction in demand, Exception of demand, Both (a) and (b), None of the above, , 80. Assertion (A) Demand for medical, equipments was high during the pandemic, making its demand highy elastic., Reason (R) When more goods are, demanded even at a higher price,, demand becomes elastic., , 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) Both are false, , Direction Read the following case study, and answer questions 81 to 85 on the, basis of the same., Demand for gold is widespread observable, fact around the world, in which India’s share, alone comes to around 25%., , Hutti gold mine company located in, Karnataka is the only company in India, which produces gold by mining and, processing the gold ore. Over the past 5, years; Indians have recycled an average of, 105 tons of gold per annum., In October, 2008, demand for gold increased;, celebrations like Diwali and Akshaya Tritiya, was the main factor for this vast increase in, demand., Imports of gold started falling from, December, 2008 by 83%, followed by 91% in, January, 2009. In March, 2009 imports were, zero., In 2010, demand went up and the price also, went up. Indian people tend to invest in gold, because of culture and belief, so the demand, always remains elastic., In 2011, Indians enjoyed a rapid increase in, income, which made the Indians to consume, more and more gold even though the price, was increasing., Certain non-price factors like income of the, consumer, prices of related goods, consumers, taste and preferences, population and, expected future price of the good also effects, the increase in the price of gold., Later on, in the year 2012, platinum, which is, a substitute good for gold started declining, from ` 35,000 to ` 22,000 which made the, people of India to purchase platinum as a, substitute good for gold., , 81. What is the nature of demand curve for, gold in Indian market?, (a), (b), (c), (d), , Upward sloping, Downward sloping, Horizontal line parallel to X-axis, Vertical line parallel to Y-axis, , 82. In spite of recent pandemic, ‘COVID-19’, the demand for gold in, Indian market remained ........... ., (a) high, (c) constant, , (b) low, (d) Either (a) or (b)

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CBSE New Pattern ~ Economics XI (Term I), , 83. What are the various determinants of, gold price in India except its own price?, (a), (b), (c), (d), , Income of consumer, Price of related goods, Taste and preferences, All of the above, , 84. What will be impact on demand curve, for gold jewellery if government, imposes heavy tariff on import of gold?, (a), (b), (c), (d), , Movement upwards, Movement downwards, Shifts to the right, Shifts to the left, , 85. Assertion (A) Constant demand for, gold during pandemic shows the strong, preference of Indians for gold., Resons (R) Gold is demanded in India, both for investment and jewellery, purposes., 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, , Direction Read the following case study, and answer questions 86 to 90 on the, basis of the same., How quickly will American businesses reopen, after COVID-19 lockdowns end?, A nationwide survey was conducted of small, businesses to measure firms’ expectations, about their re-opening and future demand., A plurality of firms in our sample expect to, reopen within days of the end of legal, restrictions, but a sizable minority expect to, delay their reopening., , 109, While health-related variables, such as, COVID-19 case rates and physical proximity, of workers, do explain the prevalence and, expected duration of regulated, lockdown, these variables have little or no, correlation with post-lockdown reopening, intentions., Instead, almost one half of closed or partially, open businesses said that their reopening, would depend on the reopening of related, businesses, including customers and suppliers., Owners expect demand to be one-third lower, than before the crisis through autumn., Firms with more pessimistic expectations, about demand predict a later reopening., Using an instrumental variables strategy, we, estimate the relationship between demand, expectations and reopening., These estimates suggest that post-lockdown, delays in reopening can be explained by low, levels of expected demand., Source-Harvard Business School Working Knowledge, Baker Library., , 86. Why demand was low even after the, lockdown restrictions were lifted in, America?, (a), (b), (c), (d), , Fall in income, Lack of availability of factors, Fear of corona virus outbreak, Both (a) and (c), , 87. As a result of fall in demand, demand, curve will ……… ., (a), (b), (c), (d), , shifts rightwards, shifts leftwards, moves downwards, moves upwards, , 88. What is the elasticity of demand for, necessity goods in the above situation?, (a) Elastic, (c) Perfectly inelastic, , (b) Inelastic, (d) Perfectly elastic

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CBSE New Pattern ~ Economics XI (Term I), , 110, , Reason (R) Worldwide lockdowns lead, to fall in economic activities and per, capita income of the country., Alternatives, , 89. Demand curve for essential, commodity will have …………, shape., (a), (b), (c), (d), , downward sloping and steeper, downward sloping and flatter, upward sloping and steeper, upward sloping and flatter, , (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, , 90. Assertion (A) Owners of general, stores expected demand to be, one-third lower in post pandemic, situation., , ANSWERS, Multiple Choice Questions, 1. (d), 11. (b), 21. (d), , 2. (b), 12. (b), 22. (c), , 3. (d), 13. (a), 23. (b), , 4. (a), 14. (a), 24. (a), , 5. (a), 15. (b), 25. (b), , 6. (c), 16. (b), 26. (c), , 7. (a), 17. (a), 27. (d), , 8. (c), 18. (b), 28. (b), , 9. (a), 19. (c), 29. (b), , 10. (b), 20. (b), 30. (c), , 31. (c), 41. (a), 51. (b), , 32. (a), 42. (a), 52. (d), , 33. (d), 43. (c), 53. (d), , 34. (b), 44. (c), 54. (c), , 35. (c), 45. (b), 55. (c), , 36. (a), 46. (d), 56. (a), , 37. (c), 47. (a), 57. (b), , 38. (b), 48. (b), 58. (c), , 39. (d), 49. (d), 59. (c), , 40. (a), 50. (a), 60. (a), , 61. (a), , 62. (b), , 63. (d), , 64. (b), , 65. (c), , 68. (b), , 69. (d), , 70. (d), , 73 (b), 83. (c), , 74. (c), 84. (d), , 75. (d), 85. (a), , 76. (c), 86. (a), , 77. (a), 87. (b), , 78. (a), 88. (b), , 79. (b), 89. (a), , 80. (d), 90. (a), , Assertion-Reasoning MCQs, 66. (a), , 67. (a), , Case Based MCQs, 71. (b), 81. (a), , 72. (c), 82. (a)

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CBSE New Pattern ~ Economics XI (Term I), , 111, , EXPLANATIONS, 1. Demand refers to the quantity that a, consumer is willing and able to buy at a, particular price during a time period., , 2. Want refers to the desire for any commodity, by the consumer while demand is that part of, want which a consumer is actually able to, buy at a particular price., , 4. Quantity demanded refers to the specific, units of a commodity demanded at a specific, prices of a commodity at a given period of, time., , 5. When the income of a consumer increases,, he can afford to buy higher/superior quality, of goods. This leads to fall in demand for, inferior goods., , 8. Demand for bricks is demanded due to the, demand for building, thus it is an example of, derived demand., , 10. Complementary goods are consumed, together in a fixed proportion but not in the, same proportion always., , 13. Law of demand only indicates the direction, of change in demand for a good when price, changes, thus, it is considered as a qualitative, approach., , 16. When the price of a commodity changes, it, leads to either upward or downward, movement along the same demand curve., , 17. When demand changes due to change in, factors other than price, it leads to either a, rightward or leftward shift in the demand, curve., , 18. More demand at the same price indicates, change in factors other than price, this is the, case of increase in demand., , 20. Slope of demand curve is measured by, change in good Y and change in good X. For, demand curve, price is measured on Y-axis, and quantity demanded on X-axis., , 22. Non-linear demand curve is the one which, has a non-constant slope, which makes the, curve rectangular hyperbola., , 23. Demand curve slopes downward due to, decreasing slope as there exist an inverse, relation between price and quantity, demanded., , 24. The movement from point A to point B is on, the same demand curve and leads to more, quantity being demanded thus, refers to, expansion in demand., , 25. The movement from point A to C represents, contraction in demand as less quantity is, demanded due to increase in price., 26. New demand curve D1 D1 represents increase, in demand as more quantity is demanded at, the same price., 27. New demand curve D2 D2 represents decrease, in demand as less quantity is demanded at, the same price., , 28. Price of related goods is considered as other, factors affecting demand. There are two types, of related goods i.e., substitute goods and, complementary goods. With rise in price of, substitute goods, demand for good concerned, also increases., , 29. Decrease in price of substitute goods leads to, decrease in demand and this is shown by, leftward shift in the demand curve., , 30. Law of demand does not hold true in case of, both giffen goods and addictions as the, demand relation between price and quantity, demanded does not holds true., , 33. Medicines are an example of necessity goods, their demand cannot be postponed or, reduced., , 34. Law of demand represents inverse relation, between price and demand due to law of, diminishing marginal utility., , 36. A good will be normal or inferior good, depending upon the income of the consumer,, i.e., for low-income group consumers, the, goods will be normal while for higher income, group person, the same good will be inferior., , 38. Change in price of the commodity leads to, movement along the demand curve., , 40. Elasticity of demand is a quantitative, approach as it shows the magnitude of, change in demand due to change in price., , 41. Slope of demand curve is change in price by, change in quantity while elasticity of demand, is change in quantity by change in price,, which is exactly the inverse of each other.

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CBSE New Pattern ~ Economics XI (Term I), , 112, 42. Price elasticity of demand measures the same, relation between price and quantity, demanded as law of demand, while elasticity, of demand is quantitative in nature., , 43. There are five different degrees of elasticity, of demand i.e., perfectly elastic, perfectly, inelastic, unit elastics, elastic and inelastic., , 44. On a rectangular hyperbola shaped demand, curve, percentage change in demand and, price are equal thus, elasticity of demand is, equal to one., , 45. Uniforms are necessity of life and cannot be, avoided, thus its elasticity is inelastic in, nature., , 47. The diagram shows inelastic demand as the, percentage change in demand is less than, that of price., , 48. The diagram shows elastic demand as the, percentage change in demand is more than, that of price., , 49. The graph shows the perfectly inelastic, demand as the percentage change in quantity, demanded is zero even when price changes., , 50. In this case, elasticity of demand is equal to 2, (20/10) , thus elasticity is elastic., , 52. Demand for luxury goods is highly inelastic, as with change in price, there is not much, change in the demand due to their, preferences., , 53. Elasticity of demand is free from units of, measurement i.e., it doesn’t use any unit for, measurement., , 55. The range of elasticity is from 0 to infinity,, where 0 and infinity are two extreme points., , 56. Demand will be inelastic when the value of, elasticity lies between 0 to 1 i.e., percentage, change in quantity is less than price., , 58. Goods which have more substitutes available,, demand become more responsive to price, marking demand highly elastic., , 59. Demand for necessity goods is inelastic and, in the above case, uniform is necessity of life., , 60. When a consumer spends a large proportion, of his income on the consumption of a, particular good, its price elasticity of demand, becomes more responsive to change in price., , 61. People with low income group tends to find, substitute goods whenever price changes thus,, demand becomes elastic., , 62. As per the given elasticity of Y is 2 and, elasticity of X is half of that of Y which is 1., , 63. Normal goods are those which has an inverse, relation with price, thus demand is more, elastic for normal goods as compared to, inferior goods., , 64. Price Elasticity of Demand = Percentage, Change in Demand / Percentage Change, in price, Percentage Change in Demand =, (Change in Demand/Original Demand) × 100, Percentage Change in Demand, = (20/100) × 100 = 20, Price Elasticity of Demand = 20/15 = 1.33, , 65. Price Elasticity of Demand = Percentage Change, in Demand / Percentage Change in Price, 2 = Percentage Change in Demand / 10, Percentage Change in Demand = 20, , 66. Durable goods are those which have a longer, shelf life thus its demand is elastic in nature, as once it is demanded, its demand gets, postponed for future., , 67. Downward slope of demand curve is due to, law of DMU as more units are purchased, only at a lower price., , 68. Demand curve is downward sloping due to, law of DMU i.e., as a consumer consume, more goods he get lesser satisfaction so, he, will be willing to pay less for each additional, units consumed., , 69. On a straight-line demand curve, elasticity of, demand is less than one i.e., inelastic, demand., , 70. Goods which can be put to several uses have, elastic demand as when price changes its, demand changes more than that of price., , 71. Salt is a basic necessity of life hence cannot, be avoided and have inelastic demand., , 72. Salt is not only a necessity of life but also has, no substitute thus, it is highly inelastic in, nature., , 73. Demand for toothpaste is elastic in nature as, it has many substitutes available.

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CBSE New Pattern ~ Economics XI (Term I), , 74. Number of buyers in the market is a, determinant of market demand and not, elasticity of demand., , 75. It is not necessary that if any good is inelastic, it, must be a necessity of life, there are other, factors as well which makes a good inelastic., , 77. Demand for inferior goods rises due to fall in, income leading to rightward shift in demand, curve for inferior goods., , 78. Relief packages announced by the government, leads to boost in income causing rise in demand, and shift in demand curve to the right., , 79. The given situation is an exception of law of, demand as during the pandemic situation law, of demand does not hold true., , 80. Demand for medical equipments is always, inelastic as it is necessity of life. During the, pandemic, the demand becomes more elastic, due to shortage of medical equipments., , 81. Demand for gold in India increases even with, increase in price as it is considered as a safe, investment, thus its demand curve is upward, sloping., , 113, 82. Demand for gold is inelastic in Indian, market, thus demand remained high even, during the pandemic situation., , 84. Due to imposition of tax by government on, gold, there will be slight change in the, demand of gold leading to leftward shift in, the demand curve., , 86. Due to the outbreak of the pandemic, income, levels declined leading to fall in demand., , 87. Fall in demand leads to leftward shift in the, demand curve even at the same price., , 88. The case above represents the situation of fall, in demand but demand for necessity remains, constant in every situation., , 89. Demand for essential goods have lower, elasticity of demand making its demand, curve steeper as the percentage change is, price is more as compared to demand., , 90. Lockdown due to pandemic leads to fall in, employment around the globe people become, more conservative in spending due to the, pandemic leading to fall in overall demand, even when the restrictions were lifted.

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CBSE New Pattern ~ Economics XI (Term I), , 115, , PRACTICE PAPER 1, Economics Class 11th (Term I), Instructions, 1. This paper has 40 questions, carrying 1 mark each., 2. All questions are compulsory., 3. Answer the questions as per the given instructions., M.M. : 40, , Time : 90 Minutes, , Section-A, Statistics for Economics, Multiple Choice Questions, Direction (Q.Nos. 1 to 11) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 1. According to Prof. Adam Smith, the, subject matter of economics is restricted, to study of human behaviour. Choose, from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 2. Which of the following is not a method, of statistical enquiry?, (a), (b), (c), (d), , Collecting of primary data, Organisation of data, Analysis of statistical data, Summarising the statistical data, , 3. All the measures are equal to each, other in case of ……… ., (a), (b), (c), (d), , symmetrical distribution, asymmetrical distribution, continuous frequency distribution, cumulative frequency distribution, , 4. You are given with a statistical, information related to production of, face mask across different parts of the, country during the pandemic time. The, above case refers to which type of, classification of data?, (a), (b), (c), (d), , Spatial classification, Temporal classification, Chronological classification, None of the above, , 5. Which of the following method of, presentation of data have a long lasting, impact on mind of people who are, reading the data?, (a), (b), (c), (d), , Tabular presentation, Diagrammatic presentation, Graphical presentation, Both (b) and (c), , 6. An act of earning livelihood by doing, some productive work is known as a, ……… ., (a), (b), (c), (d), , Market economic activity, Non-market economic activity, Non-economic activity, Either (a) or (b)

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CBSE New Pattern ~ Economics XI (Term I), , 116, 7. Arithmetic mean is the only measure of, central tendency which cannot be, calculated using the empirical, relationship. Choose from the options, below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 8. As per the property of arithmetic mean,, it is ……… of change in origin., (a) dependent, (c) affected, , (b) independent, (d) None of these, , 9. Mode is the most ill-defined measure of, central tendency as compared to, arithmetic mean and median. Choose, from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 10. Which of the following measures, should be used to analyse higher, quarter of the data arranged in, increasing order?, (a) Median, (c) Upper quartile, , (b) Lower quartile, (d) Both (b) and (c), , 11. Tabulation is the process of presenting, statistical information with, heterogeneous characteristics in the, same group. Choose from the options, below., , (b) Both Assertion (A) and Reason (R) are true,, but Reason (R) is not the correct, explanation of Assertion (A), (c) Assertion (A) is false, but Reason (R) is true, (d) Both are false, , 12. Assertion (A) Bi-variate frequency, distributions can be used to present, more than two attributes of a statistical, enquiry., Reason (R) The statistical data, arranged based upon the homogeneous, attributes are capable of further, statistical analysis., , 13. Assertion (A) Any individual, quantitative information do not, contribute to a statistical enquiry., Reason (R) Statistics is aggregate of, facts which includes quantitative, information placed in groups according, to common attributes., , Case Based MCQs, Direction Analyse the following case, study table and graph and answer, questions 14 to 18., Given below are the two different forms of, presentation of data, Age, Cohort, , Male, , Female, , Total, , N, , %, , N, , %, , N, , %, , 0-14, , 90, , 20.7, , 90, , 20.7, , 180, , 41.4, , 20-34, , 45, , 10.3, , 80, , 18.4, , 125, , 28.7, , Assertion-Reasoning MCQs, , 35-44, , 70, , 16.1, , 20, , 4.6, , 90, , 20, , Direction (Q.Nos. 12 to 13) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, , 45-54, , 20, , 4.6, , 5, , 1.1, , 25, , 5.7, , 55 and, above, , 5, , 1.1, , 10, , 2.3, , 15, , 3.4, , Total, , 230, , 52.8, , 205, , 47.1, , 435, , 100, , (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of, Assertion (A), , Source : Author’s field work, 2015

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CBSE New Pattern ~ Economics XI (Term I), , 117, , Trend Analysis—Graphical Representation, Amount of Sales per month per country (2017-18), , Direction Analyse the following case study, graphs and answer questions 19 to 23., , Y, Australia, , 100, , USA, , Y, , Belgium, , 30, , 80, , 25, , 60, , 20, , 40, , 15, , 20, , 10, , 0, , X, Oct-17, Coupon, , Nov-17, Display ADS, , Dec-17, SEM, , Jan-18, SEO, , 5, X, , 0, 70, , 14. Which of the following components is, , 80, , Title of the table, Stubs, Captions, Source, , (b) caption, (d) None of these, , 16. The information presented using the, graphical mode represents deviation bar, graph. Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 17. ……… are used to present more than, one related components together in a, graphical form., Simple horizontal bar graphs, Simple vertical bar graphs, Multiple bar graphs, None of the above, , 18. In the above table, which of the, following unit of measurement is used, to present the information?, (a), (b), (c), (d), , 120, , 130, , Absolute number, Proportionate number, Percentage number, None of the above, , Count, , 40, , the above table is ……… ., , (a), (b), (c), (d), , 110, , Y Preferred Ice Cream Flavour-Categorical Data, , 15. The division based upon the gender in, (a) stub, (c) body of the table, , 100, , Figure-1, , missing from the table given above?, (a), (b), (c), (d), , 90, , 30, 20, 10, 0, , Chocolate, , Vanilla, Strawberry, Ice Cream, , Peach, , X, , Figure-2, , 19. As per figure-1, arithmetic mean value, will lie in which of the following range?, (a) 80-90, (b) 90-100, (c) 100-110, (d) Can’t be calculated with the help of given data, , 20. As per figure-1, mode value will lie in, which of the following range?, (a) 80-90, (c) 100-110, (d) Can’t be calculated, , (b) 90-100, , 21. Which of the following flavours of, ice-cream represent the mode value in, figure-2?, (a) Peach, (c) Vanilla, , (b) Strawberry, (d) Chocolate

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CBSE New Pattern ~ Economics XI (Term I), , 118, 22. Mode value of a given series can be, located using ……… ., (a), (b), (c), (d), , 23. Median cannot be located graphically, using figure-1 alone. Choose from the, options below., , Histogram only, Bar graphs only, Both (a) and (b), Neither (a) nor (b), , (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , Section B, Introductory Microeconomics, Multiple Choice Questions, Direction (Q.Nos. 24 to 32) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 24. At all points on an indifference curve, a, consumer gets ……… level of, satisfaction., (a) same, (c) decreasing, (d) All of the above, , (b) increasing, , 25. In which of the following case, demand, curve for a normal good will not shift, from its original position?, (a) Increase in income of the consumer, (b) Increase in the price of good concerned, (c) Decrease in the price of its complementary, goods, (d) None of the above, , 26. Choose the incorrect pair from given, below., Column I, , Column II, , A. Economic, problems, , (i) Problem of choice, , B. Scarcity, , (ii) Limited supply, , C. Theory of, income, determination, , (iii) Macroeconomics, , D. Market, economy, , (iv) Profit motive, , Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) D – (iv), , 27. Elasticity of demand for comfort goods, are ……… ., (a) highly elastic, (c) inelastic, , (b) moderately elastic, (d) highly inelastic, , 28. Demand curve of a giffen good is, upward sloping. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 29. The demand of sanitizers suddenly, increase during the covid-19 pandemic., Study of this market comes under the, scope of study of which of the following, branches of Economics?, (a) Microeconomics, (c) Both (a) and (b), , (b) Macroeconomics, (d) Neither (a) nor (b), , 30. Normative statements can never be, converted in positive economics under, any circumstance. Choose from the, options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 31. Which of the following goods follows, law of demand?, (a) Normal goods, (b) Inferior goods (which are not giffen), (c) Both (a) and (b), (d) Neither (a) nor (b)

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CBSE New Pattern ~ Economics XI (Term I), , 32. Choose the correct pair from given, below., Column I, , Column II, , A. Cardinal, approach of, utility, , (i) Prof. Allen, , B. Ordinal, approach of, utility, , (ii) Quantitative in, nature, , C. Utility of a, commodity, , (iii) Objective in nature, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iv), (d) All of the above pairs are incorrect, , Assertion-Reasoning MCQs, Direction (Q.Nos. 33 to 35) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 33. Assertion (A) Verification of any given, statement is possible only in case of, normative sciences., Reason (R) Economist uses various, statements to represent different, economic situations either based upon, judgement or facts., , 34. Assertion (A) When more of a good is, demanded at the same price, Law of, DMU does not hold true for that good., , 119, Reason (R) Law of DMU has universal, acceptability with few assumptions,, postponements and exceptions., , 35. Assertion (A) Elasticity of demand, plays a vital role in deciding the shape, of demand curve for a normal good., Reason (R) Demand curve for a luxury, good is flatter as compared to the, demand curve of a normal good., , Case Based MCQs, Direction Read the following case study, and answer questions 36 to 40., The research of Vietnam Public Health, University shows that each year, smoking kills, 40,000 Vietnamese, four times the fatalities, from traffic accidents. Total expenditures of, treating three common diseases involving, smoking include lung cancer, chronic, obstructive pulmonary disease and ischemia, heart disease comes to 1,100 billion, VND/year., According to Mrs. Hoang Anh from Health, Bridge Organisation in Hanoi, at the same, brand of cigarette, a pack of it in Vietnam has, the cheapest price. The average retail price of, cigarettes is 0.22 USD/pack - a price that, almost cannot be found anywhere in the, world. Thus, the youth is easier to approach, smoking since cigarettes are too cheap and, too simple to buy., In fact, as the statistics of SAVY (Survey, Assessment of Vietnamese Youth) in 2003 2004, in the age of 14 - 25, 43.6 per cent, smoker is male and 1.2 per cent is female, the, rate of smokers increase with age. 71.7 per, cent male smoker continues smoking. Mrs., Hoang Anh said the reason of low-cost, cigarette is because in Vietnam, the tax, imposed on cigarettes are among the lowest.

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CBSE New Pattern ~ Economics XI (Term I), , 120, Recently, the WHO has recommended the, cigarette tax should be at 65 per cent/retail, costs, however, Vietnam has just reached 46, per cent. The price elasticity concepts can be, used in this case in an effort to deter people, from smoking., Tobacco products are kind of goods with, inelastic demand since there is almost no, substitute goods for them. Therefore, it is hard, to reduce the amount of people smoking once, they have been addicted. Moreover, cigarettes, also have a high-income elasticity of demand as, people with high income will be willing to buy, a lot more of packs of cigarettes, thus, they, become more and more addicted., , 36. Demand of cigarettes among youth in, the above case is ……… ., (a) elastic, (c) perfectly elastic, , (b) inelastic, (d) perfectly inelastic, , 37. Impact on demand for tobacco product, is found to be ………… in teenagers., (a) elastic, (c) perfectly inelastic, , (b) inelastic, (d) perfectly elastic, , 38. In Indian markets, it has been observed, that in spite of increased taxes demand, for tobacco products remained high., , Choose the most appropriate reason, from the given below points., (a), (b), (c), (d), , Strong taste and preferences, Unawareness about the ill effects, No proper implication of policies, All of the above, , 39. What will be the demand curve of, perfectly inelastic demand curve?, (a), (b), (c), (d), , Horizontal line parallel to X-axis, Vertical line parallel to Y-axis, Straight line passing through origin, Rectangular hyperbola, , 40. Assertion (A) Total expenditure, remains high on the commodity with, low price elasticity of demand., Reason (R) Consumption of tobacco, products including cigarettes have, inelastic demand as compared to, non-tobacco products., 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 false, but Reason (R) is true, (d) Both are false

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CBSE New Pattern ~ Economics XI (Term I), , 121, , PRACTICE PAPER 1, OMRSHEET, Instructions, Use black or blue ball point pens and avoid gel pens and fountain, pens for filling the sheets, Darken the bubbles completely. Don't put a tick mark or a cross, mark half-filled or over-filled bubbles will not be read by the software., , ü, , û, , Incorrect, , Incorrect, , Incorrect, , Correct, , Do not write anything on the OMR Sheet, Multiple markings are invalid, 1, , a, , b, , c, , d, , 21, , a, , b, , c, , d, , 2, , a, , b, , c, , d, , 22, , a, , b, , c, , d, , 3, , a, , b, , c, , d, , 23, , a, , b, , c, , d, , 4, , a, , b, , c, , d, , 24, , a, , b, , c, , d, , 5, , a, , b, , c, , d, , 25, , a, , b, , c, , d, , 6, , a, , b, , c, , d, , 26, , a, , b, , c, , d, , 7, , a, , b, , c, , d, , 27, , a, , b, , c, , d, , 8, , a, , b, , c, , d, , 28, , a, , b, , c, , d, , 9, , a, , b, , c, , d, , 29, , a, , b, , c, , d, , 10, , a, , b, , c, , d, , 30, , a, , b, , c, , d, , 11, , a, , b, , c, , d, , 31, , a, , b, , c, , d, , 12, , a, , b, , c, , d, , 32, , a, , b, , c, , d, , 13, , a, , b, , c, , d, , 33, , a, , b, , c, , d, , 14, , a, , b, , c, , d, , 34, , a, , b, , c, , d, , 15, , a, , b, , c, , d, , 35, , a, , b, , c, , d, , 16, , a, , b, , c, , d, , 36, , a, , b, , c, , d, , 17, , a, , b, , c, , d, , 37, , a, , b, , c, , d, , 18, , a, , b, , c, , d, , 38, , a, , b, , c, , d, , 19, , a, , b, , c, , d, , 39, , a, , b, , c, , d, , 20, , a, , b, , c, , d, , 40, , a, , b, , c, , d, , Students should not write anything below this line, , SIGNATURE OF EXAMINER WITH DATE, , MARKS SCORED

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PRACTICE PAPER 2, Economics Class 11th (Term I), Instructions, 1. This paper has 40 questions, carrying 1 mark each., 2. All questions are compulsory., 3. Answer the questions as per the given instructions., M.M. : 40, , Time : 90 Minutes, , Statistics for Economics, Multiple Choice Questions, Direction (Q.Nos. 1 to 11) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 1. Which of the following definition of, economics studies about the “Mankind, in the ordinary business of life”?, (a) Wealth definition, (c) Both (a) and (b), , (b) Welfare definition, (d) Neither (a) nor (b), , 2. A teacher helping his own son in doing, his homework is an example of ............, activity., (a), (b), (c), (d), , non-market economic, market economic, self-satisfying, non-economic, , 3. An ideal questionnaire should be, comprised of multiple choice questions, as much as possible. Choose from the, options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 4. Which of the following methods of, , presentation uses degree as a unit of, measurement?, (a), (b), (c), (d), , Bar graphs, Arithmetic line graphs, Histograms, Pie-diagrams, , 5. If mode of a given data is 20 while, , median is 18 and mean is 15, the given, data will be ……… ., (a), (b), (c), (d), , symmetrical distribution, positively skewed distribution, negatively Skewed distribution, Can’t be predicted, , 6. Statistics deals only with quantitative, , facts. Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 7. In which of the following methods of, , collecting primary data, the investigator, does not come in direct contact with, respondents?, (a), (b), (c), (d), , Indirect oral investigation, Questionnaire filled by enumerators, Both (a) and (b), Neither (a) nor (b)

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CBSE New Pattern ~ Economics XI (Term I), , 8. The measure of central tendency which, is calculated on the basis of the weights, assigned to each unit of the data is, called ……… ., (a) Unweighted mean, (c) Weighted mean, , (b) Combined mean, (d) Corrected mean, , 9. There can be more than one median, , value in an asymmetrical distribution., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 10. Which of the following is/are true, about the line graphs?, , (a) Line graphs can be drawn in either, horizontal or vertical form, (b) Line graphs may be drawn with different, scales, (c) Both (a) and (b), (d) Neither (a) nor (b), , 11. When the means of different series are, computed jointly, it is known as, (a) Corrected mean, (c) Correlated mean, , (b) Combined mean, (d) None of these, , Assertion-Reasoning MCQs, Direction (Q.Nos. 12 to 13) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 12. Assertion (A) In a line graph, the lines, , connecting the data points state the, statistical representation of data., Reason (R) In diagrammatic, presentation of data, the scale of, measurement plays a major role to, present the given statistical information., , 123, 13. Assertion (A) All measures of central, tendencies can be computed only when, the data is presented using an exclusive, frequency distribution method., Reason (R) Inclusive frequency, distribution does not represent the data, between the class limits of the different, classes., , Case Based MCQs, Direction Read the following case study, and answer questions 14 to 18., Observation allows researchers to experience, a specific aspect of social life and get a, first-hand look at a trend, institution, or, behaviour. Participant observation involves, the researcher joining a sample of individuals, without interfering with that group’s normal, activities in order to document their routine, behaviour or observe them in a natural, context., Observational research is a type of descriptive, research that differs from most other forms of, data gathering as in that the researcher’s goal, is not to manipulate the variables being, observed., While participants may or may not be aware, of the researchers’ presence, the researchers, do not try to control variables (as in an, experiment), or ask participants to respond to, direct questions (as in an interview or survey, based study)., Instead, the participants are simply observed, in a natural setting, defined as a place in, which behaviour ordinarily occurs, rather, than a place that has been arranged, specifically for the purpose of observing the, behaviour., Unlike correlational and experimental research, which use quantitative data, observational, studies tend to use qualitative data., Source-https://courses.lumenlearning.com/, boundless-psychology/chapter/methods-of-collecting-data/

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CBSE New Pattern ~ Economics XI (Term I), , 124, 14. As mentioned in the above paragraph,, observational research is a part of, which of the following methods of, collecting data?, (a), (b), (c), (d), , Personal investigation, Information from correspondents, Questionnaire filled by the enumerators, None of the above, , Direction Given below are two tabular, presentations of data. Analyse them and, answer questions 19 to 23., Marks distribution of students in a, given examination (out of 80), , Marks of Students, 5-15, , No. of Students, 10, , 15-25, , 5, , advantages of observational research, technique?, , 25-35, , 3, , 35-45, , 8, , (a), (b), (c), (d), , 45-55, , 2, , 55-65, , 2, , 65-75, , 10, , 15. Which of the following are the, Verification of data, Flexibility, Unbiased, All of the above, , 16. Assertion (A) Observational research, techniques cannot be applied where the, area of statistical enquire is infinite., Reason (R) Observational method is, capable of dealing with both quantitative, and qualitative information., 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 false, but Reason (R) is true, (d) Both are false, , 17. Correlational and experimental, research can only use quantitative, statistical information. Choose from the, options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 18. Which of the given below is/are true, about observational research method?, (a) It is a type of descriptive in nature, (b) It is non-judgemental, (c) Rely upon the body language of the, respondents, (d) All of the above, , Number of Cars owned by families, in a particular society, , No. of Cars, 0, , Families, 5, , 1, , 25, , 2, , 8, , More than 2, , 3, , 19. As per table-1, the mode value will lie, in which of the following intervals (by, observation method)?, (a) 5-15, (c) 65-75, , (b) 35-45, (d) Both (a) and (c), , 20. What will be the value of median in, table-2?, (a) 0, (c) 2, , (b) 1, (d) More than 2, , 21. Calculate the value of unweighted, mean in table-1., (a) 35, , (b) 37.5, , (c) 38.5, , (d) Can’t be determined, , 22. The mean value of table-2 will be …… ., (a) 1, , (b) 2, , (c) 3, , (d) Can’t be determined, , 23. The arithmetic mean value for table-2 is, indeterminate as it is ……… series., (a) discrete, (c) continuous, , (b) open-ended, (d) unequal

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Section-B, Introductory Microeconomics, Multiple Choice Questions, Direction (Q.Nos. 24 to 32) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 24. Elastic demand varies from ...... to ...... ., (a), (b), (c), (d), , zero, one, more than zero, infinity, more than one, infinity, None of the above, , below., Column II, , A. India is relatively, poor than the USA, , (i) Normative, science, , B. Problem of, underemployment, in agriculture, , (ii) Microeconomics, , C. Scarcity of, resources, , (iii) Unlimited, supply, , Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) All of the above, , 26. Viaan likes to consume coffee over tea., For him, two different brands for coffee, will be an example of ……… ., (a), (b), (c), (d), , substitute goods, complementary goods, luxury goods, None of the above, , given below., Column II, , Column I, A. Goods with higher, utility, , (i) Higher price, , B. Luxury goods, , (ii) Inelastic demand, , C. Downward sloping (iii) Giffen goods, demand curve, , 25. Correct the incorrect pair from given, Column I, , 27. Choose the correct pair from, , D. Increase in price, (iii) Rightward shift, of complementary, in demand, goods, curve, Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) D – (iv), , 28. The problem of choice arises due to, which of the following reasons?, (a), (b), (c), (d), , Limited resources, Unlimited wants of mankind, Multiple use of resources, All of the above, , 29. Labour intensive technique of, production does not require any use of, capital. Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 30. The graphical presentation of law of, demand is known as, (a), (b), (c), (d), , Demand schedule, Demand curve, Both (a) and (b), None of the above

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CBSE New Pattern ~ Economics XI (Term I), , 126, 31. On a straight line downward sloping, demand curve, price elasticity of, demand varies from 0 to 1. Choose, from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 32. Which of the following is the sufficient, condition of equilibrium under ordinal, approach?, (a), (b), (c), (d), , Equality of MRS and MRE, Downward slope of budget line, Convexity of indifference curve, Tangency of budget line and indifference, curve, , Assertion-Reasoning MCQs, Direction (Q.Nos. 33 to 35) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (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 false, but Reason (R) is true, (d) Both are false, , 33. Assertion (A) A demand function, represents the relation between price of, the commodity and quantity at all, times., Reason (R) Demand for given, commodity is affected by multiple, factors categorised as price and other, factors., , 34. Assertion (A) Inter–temporal, distribution of income is the main, component of third central problem of, an economy., , Reason (R) Income distribution, generated in the production process, among various groups of the society, ensures equality among people., , 35. Assertion (A) Once a consumer, reaches the point of equilibrium, he will, never change his preferences under any, situation., Reason (R) Income of the consumer is, the constraint which restricts him from, reaching the highest possible, combination of goods., , Case Based MCQs, Direction Read the following case study, and answer questions 36 to 40., A shoe shop decided to offer a sale. It sells, more shoes but take in less money per pair, sold. The gain or loss from the sale depends, majorly upon the price elasticity of demand., The future of any business depend upon the, market opportunity and profitability., Elasticity of demand is the key in such case, it, is a measure of responsiveness, a point to, which a demand or supply curve reacts to a, change in price., Understanding elasticity concept is useful and, essential in comprehending an extremely, wide range of applications in economics such, as the incidence of taxation, welfare, distribution or especially, the response of, supply and demand in a market. The, common elasticities used include price, elasticity of demand, price elasticity of supply, and income elasticity of demand., , 36. The firm will gain more from the sale, only, when the price elasticity of, demand is ……… ., (a), (b), (c), (d), , less than one, more than one, equal to one, All of the above

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CBSE New Pattern ~ Economics XI (Term I), , 37. Assertion (A) Elasticity of demand, helps in identifying the presence of a, group of consumers in market., Reason (R) The responsiveness of, demand against the changing, determinants decides the movement of, market in long-run., 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 false, but Reason (R) is true, (d) Both are false, , 38. Suppose the shoe seller has a, competitors available in the market., What type of price elasticity of demand, will this shoe seller will face?, , 127, (a), (b), (c), (d), , Perfectly elastic demand, Perfectly inelastic demand, Elastic demand, Inelastic demand, , 39. Which of the following is/are the, , common form(s) of elasticity used in the, market by various business firms to, determine the level of demand?, (a), (b), (c), (d), , Price elasticity of demand, Price elasticity of supply, Income elasticity of demand, Both (a) and (c), , 40. Considering the market demand for, , shoes, which of the statement will be, correct?, , (a) Market demand will be more elastic as, compared to individual demand, (b) Market demand will be less elastic as, compared to individual demand, (c) Market demand will have equal elasticity as, individual demand, (d) None of the above

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CBSE New Pattern ~ Economics XI (Term I), , 128, , PRACTICE PAPER 2, OMRSHEET, Instructions, Use black or blue ball point pens and avoid gel pens and fountain, pens for filling the sheets, Darken the bubbles completely. Don't put a tick mark or a cross, mark half-filled or over-filled bubbles will not be read by the software., , ü, , û, , Incorrect, , Incorrect, , Incorrect, , Correct, , Do not write anything on the OMR Sheet, Multiple markings are invalid, 1, , a, , b, , c, , d, , 21, , a, , b, , c, , d, , 2, , a, , b, , c, , d, , 22, , a, , b, , c, , d, , 3, , a, , b, , c, , d, , 23, , a, , b, , c, , d, , 4, , a, , b, , c, , d, , 24, , a, , b, , c, , d, , 5, , a, , b, , c, , d, , 25, , a, , b, , c, , d, , 6, , a, , b, , c, , d, , 26, , a, , b, , c, , d, , 7, , a, , b, , c, , d, , 27, , a, , b, , c, , d, , 8, , a, , b, , c, , d, , 28, , a, , b, , c, , d, , 9, , a, , b, , c, , d, , 29, , a, , b, , c, , d, , 10, , a, , b, , c, , d, , 30, , a, , b, , c, , d, , 11, , a, , b, , c, , d, , 31, , a, , b, , c, , d, , 12, , a, , b, , c, , d, , 32, , a, , b, , c, , d, , 13, , a, , b, , c, , d, , 33, , a, , b, , c, , d, , 14, , a, , b, , c, , d, , 34, , a, , b, , c, , d, , 15, , a, , b, , c, , d, , 35, , a, , b, , c, , d, , 16, , a, , b, , c, , d, , 36, , a, , b, , c, , d, , 17, , a, , b, , c, , d, , 37, , a, , b, , c, , d, , 18, , a, , b, , c, , d, , 38, , a, , b, , c, , d, , 19, , a, , b, , c, , d, , 39, , a, , b, , c, , d, , 20, , a, , b, , c, , d, , 40, , a, , b, , c, , d, , Students should not write anything below this line, , SIGNATURE OF EXAMINER WITH DATE, , MARKS SCORED

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PRACTICE PAPER 3, Economics Class 11th (Term I), Instructions, 1. This paper has 40 questions, carrying 1 mark each., 2. All questions are compulsory., 3. Answer the questions as per the given instructions., M.M. : 40, , Time : 90 Minutes, , Section-A, Statistics for Economics, Multiple Choice Questions, Direction (Q. Nos. 1 to 12) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 1. Statistics is defined as collection of, quantitative facts as per which of the, following definition?, (a), (b), (c), (d), , Singular definition, Plural definition, Both (a) and (b), None of the above, , 2. Statistics cannot be substituted for ...… ., (a), (b), (c), (d), , general knowledge, common sense, attributes, variables, , 3. Arithmetic mean of a given series is 20., If a number 3 is multiplied with each, number of the series, new arithmetic, mean will be ……… ., (a), (b), (c), (d), , 20, 40, 60, Can’t be determined, , 4. The statistical errors that arise in the, process of collection of data includes, (a), (b), (c), (d), , sampling errors, non-sampling errors, Both (a) and (b), None of the above, , 5. No statistical information is cent per, cent accurate at any point of time., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 6. Statistical information is required in, which of the following areas?, (a), (b), (c), (d), , Economic laws, Economic policies, Government administration, All of the above, , 7. Arithmetic mean is a number which is, always present in the given series., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement

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CBSE New Pattern ~ Economics XI (Term I), , 130, 8. Which of the following source of, , 12. Mode of a given series is given as 15, , information has a wide scope of, information?, , while median is equal to 20. The value, of arithmetic mean will be, , (a), (b), (c), (d), , (a) 15.25, (b) 22.50, (c) 25, (d) Can’t be determined, , Internal sources of data, External sources of data, Secondary information, All of the above, , 9. Choose the incorrect pair from given, below., Column II, , Column I, A. Collecting, information for a, vast universe, , (i) Enumerator, method, , B. Regular source of, information, , (ii) Local, correspondents, , C. Selecting sample, based upon the, judgement, , (iii) Random, sampling, , D. No visual feedback (iii) Telephonic, available, interview, Codes, (a) A – (i), (b) B – (ii), (c) C – (iii), (d) D – (iv), , 10. Every method of collecting primary, data is biased in nature due to human, involvement. Choose from the options, below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 11. If mean of a distribution is 20 and, number of items in the distribution is, ` 10, what will be the sum of all the, items in the given series?, (a), (b), (c), (d), , 200, 400, 500, Can’t be determined, , Assertion-Reasoning MCQ, 13. Assertion (A) The second quartile, represents the average number of the, given series., Reason (R) Median and quartiles are, partition values of measures of central, tendency., 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 false, but Reason (R) is true, (d) Both are false, , Case Based MCQs, Direction Read the following case study, and answer questions 14 to 18., Statistics is all about data. Presenting data, effectively and efficiently is an art. The, collected data in the first instance might have, many complexities. This is where the, importance of presentation of data comes in., Presentation is a way to simplify the data to, enhance human understanding. With time,, new and complex research started happening,, people realised the importance of the, presentation of data to make sense of the, findings. Broadly, the raw data can be, classified using three modes namely textual,, tabular and diagrammatic. Each method is, used for different purposes with its own, merits and demerits.

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CBSE New Pattern ~ Economics XI (Term I), , 131, Y, , 14. The data which is gathered and, , Less than ogive, , presented in various paragraph forms is, known as ……… ., Textual presentation, Tabular presentation, Diagrammatic presentation, None of the above, , 15. Which of the following is/are the, components of textual presentation?, (a) Texts, (c) Both (a) and (b), , (b) Figures, (d) None of these, , 16. Systematic arrangement of data using, , x-axis 1 big division = 5 units, y-axis 1 big division = 10 units, , 60, 50, , Frequency, , (a), (b), (c), (d), , Scale:, , Textual presentation, Tabular presentation, Diagrammatic presentation, None of the above, , 17. ……… uses small identical figures or, objects for comparison of various data., (a) Pictographs, (c) Graphs, , (b) Diagrams, (d) All of these, , 18. Visual presentation of data includes, which of the following methods of data?, (a), (b), (c), (d), , Diagrammatic presentation, Graphical presentation, Both (a) and (b), None of the above, , Direction Read the following case study, and answer questions 19 to 23., Arithmetic mean has become the most widely, used measure of central tendency of data., Arithmetic mean, which has maximum merits, and least demerits, is the most meritorious, measure of central tendency of data among all, other existing measures for the same. One, demerit of arithmetic mean is that it is, affected by the extreme value (of observed, data). After mean, the most used method is, median and the least used method is mode, due to the complexity in its calculation., Observe the figure given below and answer, the questions., , 70 75, , 80, , 85, , 28, 18, 10, , E=58.5, , 4, 45, , 50, , various rows and columns is known as, (a), (b), (c), (d), , 50, , 35, , 30, 25, 20, , 0, , 49, , 41, , 40, , 10, , 46, , 55, , 60 65, , X, , Class Interval, , 19. In the above figure, median value is, given as, (a) 55, (b) 58.5, (c) 60, (d) Can’t be determined, , 20. Which of the following is used to, calculate median in the diagram?, (a) (N/2)th term, (c) (N/4)th term, , (b) {(N+1)/2}th term, (d) {(N+1)/4}th term, , 21. Mean is the most used method of, central tendency in spite of the fact that, it is affected by sampling fluctuations., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 22. Which of the following formulae can be, used to calculate lower quartile in the, above graph?, (a), (b), (c), (d), , (N/4)th term, {(N+1)/4}th term, 3(N/4)th term, {3(N+1)/4}th term, , 23. ……… th item will be the upper, quartile in the above data., (a) 12.5, (c) 37.5, , (b) 25, (d) 50

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Section-B, Introductory Microeconomics, Multiple Choice Questions, , 28. A consumer is in equilibrium, , Direction (Q.Nos. 24 to 31) All the, questions have four options out of which, only one is correct. Choose the correct, option as your answer., , 24. Choose the correct pair from given below., Column II, , Column I, A. Quantity of each good, to be produced, , (i) What to, produce?, , B. Technique of, production, , (ii) How to, produce?, , C. Distribution of income (iii) For whom, to produce?, Codes, (a) A – (i), (c) C – (iii), , (b) B – (ii), (d) All of the above, , 25. Total utility is maximum when marginal, utility becomes negative. Choose from, the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 26. “What it ought to be” is a common, phrase used for positive statements., Choose from the options below., (a), (b), (c), (d), , True, False, Partially true, Incomplete statement, , 27. If consumer has an income of ` 1,000, and price of good X is ` 10 while the, price of good Y is ` 5, the intercept of, budget line on Y-axis will be equal to, ……… ., (a), (b), (c), (d), , 100, 200, 500, Can’t be determined, , consuming two goods X and Y. What, will be the effect on demand for good, Y, if price of good X falls?, (a), (b), (c), (d), , Demand for good Y will remain unchanged, Demand for good Y will fall, Demand for good Y will rise, Depends upon the magnitude of change in, price of good X, , 29. Which of the following is/are not true, about law of diminishing marginal utility?, (a) Law operates only when the consumption is, continuous, (b) Knowledge is an exception of the law, (c) The quality of goods consumed should be, same for the applicability of the law, (d) All of the above are true statements, , 30. Development of infrastructure planned, in the government budget comes under, the scope of study of which of the, following branch of economics?, (a), (b), (c), (d), , Microeconomics, Macroeconomics, Descriptive economics, Applied economics, , 31. In the calculation of price elasticity of, demand, actual price is measured in, (a), (b), (c), (d), , numerator, denominator, Not included in the formula, Either (a) or (b) depending upon nature of, the good, , Assertion-Reasoning MCQs, Direction (Q.Nos. 32 to 35) There are, two statements marked as Assertion (A), and Reason (R). Read the statements and, choose the appropriate option from the, options given below, (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of, Assertion (A)

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CBSE New Pattern ~ Economics XI (Term I), , (b) Both Assertion (A) and Reason (R) are true,, but Reason (R) is not the correct, explanation of Assertion (A), (c) Assertion (A) is false, but Reason (R) is true, (d) Both are false, , 32. Assertion (A) All giffen goods need not, necessarily be inferior depending upon, the level of income., Reason (R) Any luxury good that has, positive relation with the price is a, giffen good., , 33. Assertion (A) Demand curve for an, inferior good will shift to the left with, rise in the income of the consumer., Reason (R) When income levels increase,, consumers demand for superior quality, goods increases overtime., , 34. Assertion (A) Any good that can be put, to multiple use have highly elastic, demand., Reason (R) When the price of a good falls,, many new consumer enters the market, and one good is used in many ways., , 35. Assertion (A) Scarcity is the root cause, of problem of choice that every, economy has to face at points of time., Reason (R) There is no way by which, the central problems of an economy, can be solved once for all., , Case Based MCQs, Direction Read the following case study, and answer questions 36 to 40., A study of demand and supply of quality of, televisions in 13 European countries utilise, data on exports and imports of various types, of television sets. Large-screen TVs have a, higher unit value, on average, but there is a, large dispersion of unit values across source, countries and destinations. Richer countries, tend to export large-screen TVs at a lower, price relative to small-screen TVs, potentially, , 133, because they have a comparative advantage, in producing in quality. It was found that, there is a downward sloping demand for, quality, with countries facing a larger quality, premium buying fewer large-screen TVs., This suggests that there is no simple, quality-quantity trade-off (unlike in many, recent trade models), and the demand for, quality should be modelled separately., , 36. The large screen TVs have a higher unit, due to which of the following reasons?, (a), (b), (c), (d), , High income of the consumers, Preferences of the consumer, Both (a) and (b), Neither (a) nor (b), , 37. The price elasticity of demand of, , large-screen televisions will be highly, elastic. Choose from the options below., (a) True, (b) False, (c) Partially true, (d) Incomplete statement, , 38. Assertion (A) The demand curve for, , televisions is downward sloping and, steeper., Reason (R) When the demand is less, responsive to change in price, its, elasticity becomes inelastic., 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 false, but Reason (R) is true, (d) Both are false, , 39. Export price of large television screen, is low due to ……… ., (a) competitiveness, (c) productive, , (b) efficiency, (d) low demand, , 40. When people are ignorant about the, , price changes of a good, its demand is, said to be, (a) price elastic, (c) price unit elastic, , (b) price inelastic, (d) None of these

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CBSE New Pattern ~ Economics XI (Term I), , 134, , PRACTICE PAPER 3, OMRSHEET, Instructions, Use black or blue ball point pens and avoid gel pens and fountain, pens for filling the sheets, Darken the bubbles completely. Don't put a tick mark or a cross, mark half-filled or over-filled bubbles will not be read by the software., , ü, , û, , Incorrect, , Incorrect, , Incorrect, , Correct, , Do not write anything on the OMR Sheet, Multiple markings are invalid, 1, , a, , b, , c, , d, , 21, , a, , b, , c, , d, , 2, , a, , b, , c, , d, , 22, , a, , b, , c, , d, , 3, , a, , b, , c, , d, , 23, , a, , b, , c, , d, , 4, , a, , b, , c, , d, , 24, , a, , b, , c, , d, , 5, , a, , b, , c, , d, , 25, , a, , b, , c, , d, , 6, , a, , b, , c, , d, , 26, , a, , b, , c, , d, , 7, , a, , b, , c, , d, , 27, , a, , b, , c, , d, , 8, , a, , b, , c, , d, , 28, , a, , b, , c, , d, , 9, , a, , b, , c, , d, , 29, , a, , b, , c, , d, , 10, , a, , b, , c, , d, , 30, , a, , b, , c, , d, , 11, , a, , b, , c, , d, , 31, , a, , b, , c, , d, , 12, , a, , b, , c, , d, , 32, , a, , b, , c, , d, , 13, , a, , b, , c, , d, , 33, , a, , b, , c, , d, , 14, , a, , b, , c, , d, , 34, , a, , b, , c, , d, , 15, , a, , b, , c, , d, , 35, , a, , b, , c, , d, , 16, , a, , b, , c, , d, , 36, , a, , b, , c, , d, , 17, , a, , b, , c, , d, , 37, , a, , b, , c, , d, , 18, , a, , b, , c, , d, , 38, , a, , b, , c, , d, , 19, , a, , b, , c, , d, , 39, , a, , b, , c, , d, , 20, , a, , b, , c, , d, , 40, , a, , b, , c, , d, , Students should not write anything below this line, , SIGNATURE OF EXAMINER WITH DATE, , MARKS SCORED

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CBSE New Pattern ~ Economics XI (Term I), , 135, , ANSWERS, Practice Paper 1, 1. (b), 11. (b), 21. (d), , 2. (d), 12. (c), 22. (a), , 3. (a), 13. (a), 23. (a), , 4. (a), 14. (a), 24. (a), , 5. (d), 15. (a), 25. (b), , 6. (d), 16. (b), 26. (c), , 7. (b), 17. (c), 27. (b), , 8. (b), 18. (c), 28. (a), , 9. (a), 19. (d), 29. (a), , 10. (c), 20. (b), 30. (b), , 31. (c), , 32. (d), , 33. (c), , 34. (a), , 35. (b), , 36. (b), , 37. (a), , 38. (d), , 39. (b), , 40. (a), , Practice Paper 2, 1. (b), 11. (b), 21. (c), , 2. (d), 12. (b), 22. (d), , 3. (a), 13. (c), 23. (b), , 4. (d), 14. (a), 24. (b), , 5. (c), 15. (d), 25. (d), , 6. (b), 16. (b), 26. (a), , 7. (c), 17. (a), 27. (a), , 8. (c), 18. (d), 28. (d), , 9. (b), 19. (d), 29. (b), , 10. (c), 20. (b), 30. (b), , 31. (b), , 32. (c), , 33. (c), , 34. (c), , 35. (c), , 36. (a), , 37. (b), , 38. (c), , 39. (d), , 40. (a), , Practice Paper 3, 1. (b), 11. (a), 21. (b), , 2. (b), 12. (b), 22. (a), , 3. (c), 13. (d), 23. (c), , 4. (c), 14. (a), 24. (d), , 5. (a), 15. (c), 25. (b), , 6. (d), 16. (b), 26. (b), , 7. (b), 17. (a), 27. (b), , 8. (b), 18. (c), 28. (b), , 9. (c), 19. (b), 29. (d), , 10. (a), 20. (a), 30. (b), , 31. (a), , 32. (d), , 33. (a), , 34. (a), , 35. (b), , 36. (c), , 37. (b), , 38. (a), , 39. (b), , 40. (b)