MARKING SCHEME
Class-XIth
Sub-ECONOMICS
Supplementary examination
(2023-24)
Note these are expected answer. Marks may be given to the student if he/she writes correct answers other than marking
scheme.
Part A- Statistics in Economics
Q.No Value point Marks
1 (d) 1
2 (a) 1
3 (a) 1
4 (b) 1
5 (c) 1
6 (b) 1
7 (b) 1
8 (b) 1
9 (c) 1
10 (b) 1
11. 3
Weights (in grams) Tally Bars No. of apples(f)
60-80 IIII 5
80-100 IIII IIIIIIII 14
100-120 IIII IIIIIIII II 17
120-140 IIII IIII 10
140-160 I 1
160-180 - -
180-200 II 2
200-220 II 1
12. 3
Census Sampling
Involves collecting data from every single Involves collecting data from a subset or a
member of a population selected group of the population
Requires a large amount of resources and Requires fewer resources and is quicker to
time to conduct the survey and gather data conduct as it only involves a specific group
of the population
Or
Provides a complete and accurate Provides an estimate or a general idea of
representation of the population as it covers the population based on the sample
all the members selected
OR 3
A questionnaire is a list of questions related to the field of enquiry. It may be defined as an
instrument of collecting primary data from a large number of people.
(i) The number of questions should be as minimum as possible.
(ii) The questions should be simple, clear and unambiguous.
(iii) The questions should be arranged in a proper order,
(iv) As far as possible, undesirable questions or personal questions should be avoided.
(v) Before giving final shape to the questionnaire, it should be pre-tested by conducting a
preliminary survey on a sample.
13 2
Component Firm X degree figure+
Raw Material 8000 720 2
Labour 10000 900 schedul
Factory Exp 4000 360 e=4
Office and Selling Exp 12000 1080
Profit 6000 540
14 2+2=4
Class C.F C.I f MV dx=X-A d’x fd’x
Less than 10 4 0-10 4 5 -50 -5
-20
10-20 -4
less than 20 8 4 15 -40 -16
-30 -3
less than 30 25 20-30 17 25 -51
Less than 40 34 -2
30-40 9 35 -20 -18
-10 -1
Less than 50 41 40-50 7 45 -7
0
Less than 60 46 50-60 5 55 0 0
Less than 70 50 10 1
60-70 4 65 4
2
Less than 80 60 70-80 10 75 20 20
30 3
Less than 90 89 80-90 29 85 87
Less than 100 100 4
90-100 11 95 40 44
43
A=55
∑fd’x=43
N= 100 Or
X = 59.3 2 for
OR table+2
for
Arrange the series in ascending order calculat
ion=4
class interval in which value of mode exist is 40-50 (using grouping method)
L1=40 ,f1=21, f0=22, f2=19, i=10
𝑓1−𝑓0
Z= L1+ 2𝑓1−𝑓1−𝑓0 *i
Z=43.33
15 A scatter diagram is a correlation chart that visually depicts the relationship between two 1+1.5+
variables. It provides insights into how two variables affect each other when they are plotted 1.5=4
over a graph.
If the all points of a scatter diagram fall on a straight line with
negative slope, then the correlation is said to be perfectly
negative
If the points are scattered in a haphazard manner, then it is a
case of zero or no correlation.
16. (a) Family Budget method or weighted average of relative’s method. 3+3=6
(b) Aggregative Expenditure Method
(a) Family Budget Method
The steps required to determine Consumer Price Index through this method are:
Step 1: First, calculate the price relatives for the current year and denote the resultant figure by
R.
Step 2: Now, multiply the price in the base year (p0) by the quantity in the base year (q0) to
determine the weight of a commodity; i.e., to obtain W.
Step 3: Multiply the price relatives (R) with the weight (W) of each commodity and obtain the
total; i.e., ∑RW.
Step 4: Now obtain the sum total of weights to obtain ∑W and apply the following
formula:
(b) Aggregate Expenditure Method
The steps required to determine Consumer Price Index through this method are:
Step 1: Multiply the prices of the base year (p0) with the quantities of the base year (q0) and
add the resultant values to obtain the aggregate expenditure for the base year; i.e., ∑p0q0.
Step 2: Now, multiply the prices of the current year (p1) with the quantities of the base year (q0)
and add the resultant values to obtain the aggregate expenditure for the base year; i.e., ∑p1q0.
Step 3: Divide the aggregate current year’s expenditure (∑p1q0) by the aggregate base year’s
expenditure (∑p0q0) and multiply it by 100 to obtain the consumer price index.
Thus, the formula to determine Consumer Price Index under this method is as follows
17 3for
X Y dx =X-X dy=Y-Y dxdy d2x d2y table+3
for
30 50 -23 -11 253 529 121 calculat
36 50 -17 -11 187 289 121 ion=6
42 54 -11 -7 77 121 49
48 54 -5 -7 35 25 49
54 62 1 1 1 1 1
60 66 7 5 35 49 25
72 70 19 9 171 361 81
82 82 29 21 609 841 441
424 488 0 0 1368 2216 888
53 61 0
𝑁∑𝑑𝑥𝑑𝑦−∑𝑑𝑥∑𝑑𝑦
R =
𝑁𝑑2𝑥− (𝑑𝑥)2* 𝑁𝑑𝑦2−(𝑑𝑦)2
= 8(1368) – (0)
√8*2216-0*√8*888-0
= 10944
11221
= 0.975
OR
X Y R1 R2 D= R1- D2
R2
90 18 1 8 -7 49
88 25 2 7 -5 25
78 30 3.5 5 -1.5 2.25
78 30 3.5 5 -1.5 2.25 Or
74 30 5 5 0 0 3for
70 42 6 2 4 16 table+3
65 38 7 3 4 16 for
62 47 8 1 7 49 calculat
ion=6
∑D=0 ∑D2=159.5
Rk= 1 −
1 1
6(∑𝐷2+ 12 (𝑚3−𝑚)+ 12 (𝑚3−𝑚))
𝑁3−𝑁
6(159.5+.5+2)
= 1- 512−8
= 1-1.93
=-0.93
Q.No. Part B- Introductory Microeconomics Marks
18. (a) 1
19. (d) 1
20. (c) 1
21. (b) 1
22. (d) 1
23. (c) 1
24. (c) 1
25. (b) 1
26. (c) 1
27. (d) 1
28. 3
Good X Good Y MOC
0 50 -
1 45 50-45=5
2 40 45-40=5
3 30 40-30=10
4 15 30-15=15
5 2 15-2=12 Or
OR
This involves deciding who is the end consumer of the goods or services that are produced.
3
Every good produced is made for a specific section of society as every product cannot satisfy
all the sections of society due to difference in the paying capacity of the consumer. Inequality
in the distribution of income can be noticed in society because of which there is a difference in
the paying capacity of the consumer.
For example, the production of graded rice is for people with higher paying capacity and the
production of non-graded rice is for lower-income people. Luxury goods and services are for
people with high income.
The distribution of final goods and services is equal to the distribution of income among the
factors of production (land, labour, capital, entrepreneurship). This has two aspects:
Personal Distribution: This refers to the distribution of income by a different group of
individuals in society.
Functional Distribution: This refers to the distribution of income among different factors of
production.
29. Producer’s equilibrium refers to the state in which a producer earns his maximum profit or 3
minimize its losses. According to MR-MC approach, the producer is at equilibrium, when the
Marginal Revenue (MR) is equal to the Marginal Cost (MC) and Marginal Cost curve must cut
the Marginal Revenue curve from below.
Two conditions under this approach are:
(i) MR = MC
(ii) MC curve should cut the MR curve from below, or MC should be rising.
MR is the addition to TR from the sale of one more unit of output and MC is the addition to TC
for increasing the production by one unit. In order to maximise profits, firms compare its MR
with its MC
As long as the addition to revenue is greater than the addition to cost. It is profitable for a firm
to continue producing more units of output. In the diagram, output is shown on the X-axis and
revenue and cost on the Y-axis. The Marginal Cost (MC) curve is U-shaped and P ~ MR = AR,
is a horizontal line parallel to X-axis.
MC = MR at two points Rand K in the diagram, but profits are maximised at point K,
corresponding to O Q level of output. Between O Q, and O Q levels of output, MR exceeds
MC. Therefore, firm will not stop at point R but will continue to produce to take advantage of
additional profit. Thus, equilibrium will be at point K, where both the conditions are satisfied.
Situation beyond O Q level: MR < MC When output level is more than O Q, MR < MC, which
implies that firm is making a loss on its last unit of output. Hence, in order to maximise profit,
a rational producer decreases output as long as MC > MR. Thus, the firm moves towards
producing O Q units of output.
30. Given Px = 5, Py = 4, MUx = 4, MUy = 5. A consumer is in equilibrium when
𝑀𝑈𝑥
=
𝑀𝑈𝑦
.
𝑃𝑥 𝑃𝑦
4 5 𝑀𝑈𝑥 𝑀𝑈𝑦
Substitution values, 5 < 4 ie 𝑃𝑥
= 𝑃𝑦
1+1+2=
4
So consumer is not in equilibrium. Since per rupee MU of x is lower than perrupee MU of y. So
the consumer will buy less of x and more of y. As a result, MU of x will rise and MU ofy will
𝑀𝑈𝑥
fall due to operation of law of Diminishing Marginal utility. This process will continue till 𝑃𝑥
𝑀𝑈𝑦
= 𝑃𝑦
at which the consumer attains equilibrium.
31. Law of variable proportion- As more and more variable factors are employed with fixed factor, 2 for
MP increases in the beginning, than decreases and ultimately becomes negative. figure+
Schedule and diagram with brief explanation. 2 for
explana
tion of
stages
Fixed Variable TP MP AP Stages
Factor Factor Product Product
1 1 10 10 10 IStage(Increasing
Returns to Factor)
1 2 30 20 15
1 3 45 15 13 IIStage(Decreasing
Returns to factor)
1 4 52 7 13
1 5 52 0 10.4
1 6 48 -4 8 IIIStage(Negative
Returns to a Factor)
1 7 38 -10 5.4
The law has three stages as explained below:
1. Stage I – The TPP increases at an increasing rate and the MPP increases too. The MPP
increases with an increase in the units of the variable factor. Therefore, it is also called the
stage of increasing returns. In this example, the Stage I of the law runs up to three units of
labour (between the points O and L).
2. Stage II – The TPP continues to increase but at a diminishing rate. However, the increase
is positive. Further, the MPP decreases with an increase in the number of units of the
variable factor. Hence, it is called the stage of diminishing returns. In this example, Stage
II runs between four to six units of labour (between the points L and M). This stage
reaches a point where TPP is maximum (18 in the above example) and MPP becomes zero
(point R).
3. Stage III – Now, the TPP starts declining, MPP decreases and becomes negative.
Therefore, it is called the stage of negative returns. In this example, Stage III runs between
seven to eight units of labour (from the point M onwards).
OR
Or
Difference Between Supply and Quantity Supplied
Points Supply in supply Change in Quantity Supplied
2+2
Meaning When supply due to the change in all When supply changes due to change
other variables other than the price of in the price of goods only, assuming
a good (i.e. price of the good remains other determinants remaining
same), then it is referred as change in unchanged, then it is referred as
supply. change in quantity supplied.
Shifting and
It results in a shift in the supply
movements It results in a movement of the
curve of the firm which can be
supply curve of the firm which can
rightwards or leftwards.
be upward or downward.
Types
The following are its types:
The following are its types:
1) Increase in Supply
1) Expansion of Supply
2) Decrease in Supply
2) Contraction of Supply
Image
32. .5 for
Output(units) TC AVC MC each
0 24 0 - correct
1 44 20 20 point=4
2 54 15 10
3 69 15 15
4 88 16 19
33 A consumer always tries to remain at the highest possible indifference curve, subject to his 3+3=6
budget constraint.
1. Equilibrium Condition:
1. MRSxy (Slope of Indifference Curve) = Ratio of prices or Px/Py (Slope of Budget Line).
· If MRSxy>Px/Py, it means that the consumer is willing to pay more for X than the price
prevailing in the market. As a result, MRS falls till it becomes equal to the ratio of prices and
the equilibrium is established.
· If MRSxy<Px/Py, it means that the consumer is willing to pay less for X than the price
prevailing in the market. As a result, MRS rises till it becomes equal to the ratio of prices and
the equilibrium is established.
2. Sufficient Condition:
MRS continuously falls: The second condition is also satisfied at point E as MRS is
diminishing at point E, i.e IC2 is convex to the origin at point E.
As budget line can be tangent to one and only one indifference curve, consumer maximizes
his satisfaction at point E, when both the conditions of consumers equilibrium are satisfied.
OR
(i) Higher IC show the higher level of satisfaction -An indifference curve is a graphical
representation of a combined products that gives similar kind of satisfaction to a consumer OR
thereby making them indifferent.Every point on the indifference curve shows that an individual
or a consumer is indifferent between the two products as it gives him the same kind of utility.
2+2+2=
6
Combination B provide more satisfaction in compare to combination A.
(II) Two IC can’t intersect to each other-As two indifference curves cannot represent the
same level of satisfaction, they cannot intersect each other. It means only one indifference
curve will pass through a given point on an indifference map. In figure, satisfaction from point
A and from B on IC1 will be the same level satisfaction. It means points B and C should also
give the same level of satisfaction. However, this is not possible, as B and C lie on two
different indifference curves, IC1 and IC2 respectively and represent different levels of
satisfaction. Therefore, two indifference curves cannot intersect each other.
(iii)IC is convex to origin-An indifference curve being convex towards origin means that slope
of the curve declines as the consumer moves along the curve from left to right. Slope is nothing
but Marginal Rate of Substitution which means the number of units of the good on the y-axis,
the consumer is willing to sacrifice to obtain one more unit of the good on the X-axis. So
convexity means MRS declining as consumer obtains more and more of the good on the
X-axis. This is due to the Law of Diminishing.
34. (a) When the government imposes upper limit of on the price of a good it is called maximum 3+3
price ceiling. It is fixed below the equilibrium price.
Implication: It will lead to excess demand. This in turn may lead to black marketing of goods.
Government imposes a price ceiling to control the maximum prices that can be charged by
suppliers for the commodity. This is done to make commodities
affordable to the general public. However, prolonged
application of a price ceiling can lead to black marketing and
unrest in the supply side.
(b) A Floor price is the minimum price at which a commodity can be sold legally. Floor price
if fixed above the equilibrium price, serves the purpose of welfare of the producers (say
farmers). When price floor is fixed at P” quantity demanded will contract to OQ” but at this
price, suppliers will be ready to supply OQ’. As a result, surplus of QQ” will emerge.
Dr.
Imposition of floor prices above equilibrium price will have the following major implications:
a) Surpluses: The quantity actually brought and supplied will shrink as a direct consequence of
price flooring, as a result, a part of producer’s stock will remain unsold. As shown in the figure
the surplus of Q’Q” arises.
b) Buffer Stock: In order to maintain the support price, the government may design some
programmes to enable producers to dispose of their surplus stocks. One such programme can
take the form of buffer stock. Government may purchase the surplus to store or sell it at
subsidised prices. Subsidy is required to lower the price and make it competitive in the market.
Government may also use it as aid and send it to other countries.
Vijay Pratap Singh
PGT – Eco
K.V. No.3 ChakeriKnapur
Mobile no- 9756271817
Email [email protected]
