ACADEMIC WINDOW

ECONOMICS GRADE XI
(2024-2025)

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 Note from HOD

“The more that you read, the more things you will know. The more that you learn, the more
places you’ll go.” ― Dr. Seuss

This book you hold in your hands today is a collection of different exercises that will challenge
you to think,and encourage critical analysis and lateral thinking. Through a series of well-
developed questions, targeting different levels of comfort, this Academic Window aims to bridge
the gap between ‘where you are’ and ‘where you can be’.

Recognizing the world of constant change, where students are routinely expected to think out of
the box, the CBSE has revised the design of the question paper and included application-based
questions, HOTS, and reasoning and assertion questions. Solutions to these questions are possible
only with a sound conceptual base. It is a consolidated effort of Faculty of Department of
Commerce to provide students with not only a wide-ranging support for crunch-time preparation
before exams, but also provide step-by-step learning for a comprehensive grasp of the subject
matter. On the one hand, the level of students has been kept in mind on developing this manual,
and on the other, the intent of the curriculum has also been given due consideration.

At the end of this AW, you will find the Past Year’s question papers and their Answer keys. This
gives you a targeted practice that will help you in your preparations and let you confidently enjoy
your academic journey in Grade 11.

Hema Narula

HOD, Economics & Marketing

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 INDEX
S. No. Title Page

1 Unit 1 – Introduction 8

2 Unit 2 – Collection, Organization and Presentation of Data 11

3 Unit 3 – Statistical tools and interpretation 21

5 Unit 4 Introduction 38

6 Unit 5- Consumer Equilibrium & Demand 40

7 Unit 6-Producer Equilibrium & Supply 44

8 Unit7- Forms of Market & Price determination 48

Project Work (will be discussed in class & guidelines

uploaded on Teams)
PAST PAPERS (PT1, PT2, PT3, HY and EEE) QP and AK 49

Annexure – List of formulae 104

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SYLLABUS AS PRESCRIBED BY CBSE

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7
 UNIT 1- INTRODUCTION
Things to remember:

What is Economics? (Scarcity Definition)

Economic and Non Economic Activity.
Components of Economics – Production, Consumption and Distribution.
Statistics a plural noun – aggregate of facts.
Statistics a singular noun – technique of collection, presentation etc.
Scope and importance of statistics in Economics.

MCQ ( 1 mark each)

1) It deals with the collection, presentation, analysis and interpretation of quantitative

information. This statement defines
a) statistics in singular sense
b) statistics in plural sense
c) Both
d) None
2) A person who buys goods and services for the satisfaction of human wants
a) Consumer
b) Merchant
c) Producer
d) Service holder
3) Economics is divided into three parts
a) Consumption, Production and Distribution
b) Conserve, Product and Distribution
c) Consumption, Capital and Data collection
d) Consumption, Production and Data collection
4) Which of the following is not the character of statistics in plural form
a) Collection of data
b) Numerically expressed
c) Aggregate of facts
d) Collected in a systematic manner
5) Arrange stages in a statistical investigation
(a) Collection of data; (b) Analysis of data ; (c) Presentation of data ; (d) Organization of
data; ( (e) Interpretation of data. . Options are
a) a,d,c,b,e
b) a,e,b,d,c
c) c,a,d,b,e
d) a,c,d,b,e

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6) Identify non-economic activity
a) Distribution of goods as charity
b) Buying and selling of goods
c) Production of goods
d) None
7) It is a process which is concerned with sale and purchase of commodities
a) Distribution
b) Exchange
c) Investment
d) Production
8) Economics that deals with economic problems as a whole are called
a) Macro economics
b) Micro economics
c) Both
d) None
9) Production is
a) Process of converting raw material into useful things
b) The process of using up utility value of goods and services for the direct satisfaction of
our wants
c) Both
d) None
10) It is the part of income which is not consumed
a) Production
b) Saving
c) Interest
d) Consumption
11) The study of mankind in the ordinary business of life
a) Econometric
b) Economics
c) Economy
d) Environment

Very Short Anwers (1 marks)

1. Define Economics? 1
2. Which of the following activity is an economic activity? 1
a) teacher teaching his own son
b) Social services rendered by NGO's in flood victims.
c) Cooking of food by the housewife in her home
d) Working in a factory or office.
3. Define statistics in singular sense 1
4. What is economic problem and why does it arise? 1
5. Economic Problem is the cause of scarcity. How? 1
6. Name the stages of statistical study? 1
7. Distinguish between ‘qualitative’ and ‘quantitative’ data, giving examples of both. 1

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Short Answers (3 and 4 marks) and Long Answers (6 marks)
8. Differentiate between Micro and Macro Economics. 3
9. State three main functions of statistics and briefly explain any one 3
10. Briefly explain the three distinct components of economics? 3
11. Statistics has emerged as the center stage of economics. Explain three points 3
highlighting the significance of statistics in economics?
12. Discuss the importance of Statistics in economic planning with special reference to 3
India?
13. Statistical methods are no substitute for common sense. Comment. 3

Higher Order Thinking Skills (HOTS)

1. Conventional divisions of the study of economics comprises study of consumption, 3

production and distribution. Explain.
Ans: Economics involves the study of men engaged in economic activities of all kinds
which are production, consumption and distribution.
i) Production : Manufacturing of goods by producers for the market or for profit
motive is called production
ii) Consumption: Purchase of goods by the consumers to satisfy their various needs is
called consumption.
iii) Distribution: Division of national income into wages, profit, rent and interest is
called distribution.
2. There is a general perception that statistical knowledge, is frequently intentionally 3
misused. Explain how.
Answer: Statistics ids the most dangerous tool in the hands of inexpert. Data can be
manipulated to conceal the truth and present the facts to meet selfish ends.
Manipulations can arise from unintentional biases of the researchers or faulty choice of
sample. If results contradict each other it creates mistrust on the statistical analysis.
Before interpreting the results it is necessary to know the facts and verify the results.
3. Suppose, 30% rise in price have been due to several causes ,like reduction of supply, 3
increase in demand, shortage of power, rise in wages, rise in taxes etc. Which feature
of statistics does it indicate.
Answer: It indicates that statistics are affected by multiplicity of causes
4. If 'Ram is 30 years old, Mohan is 5ft tall, Sohan's weight is 70 kg ' then will these
numbers be called statistics?
Answer: No, as they are neither mutually related nor comparable.

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 UNIT 2 – COLLECTION, ORGANISATION AND PRESENTATION OF
DATA
Points to Remember:
Collection of Data
1. Collection of data is the first important aspect of statistical survey.
2. Data – Information which can be expressed in numbers.
3. Two sources of data – Primary & Secondary Primary data – data collected by Investigator himself
secondary data – data collected by someone and used by the Investigator..
4. Difference between Primary and Secondary Data
a] Primary data is original data collected by the investigator while secondary data is already existing and
not original.
b] Primary data is always collected for a specific purpose while secondary data has already been
collected for some other purpose.
c] Primary is costlier or is more expensive whereas secondary data is less expensive.
5. Methods / Sources of Collection of Primary Data:
a] Direct Personal Interview – Data is personally collected by the interviewer.
b] Indirect Oral Investigation – Data is collected from third parties who have information about subject
of enquiry.
c] Information from correspondents – Data is collected from agents appointed in the area of
investigation.
d] Mailed questionnaire – Data is collected through questionnaire [list of questions] mailed to the
informant.
e] Questionnaire filled by enumerators – Data is collected by trained enumerators who fill
questionnaires.
f] Telephonic interviews – Data is collected through an interview over the telephone with the
interviewer.
Questionnaire – A list of questions with space for answers.
6. Pilot Survey – Try-out of the questionnaire on a small group to find its shortcomings.
7. Qualities of a good questionnaire:
a] A covering letter with objectives and scope of survey.
b] Minimum number of questions.
c] Avoid personal questions.
d] Questions should be clear and simple.
e] Questions should be logically arranged.

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MCQ (1 mark)
Collection of Data
1) __________ data are collected by the investigator himself.
a) Secondary
b) Primary
c) both (a.) and (b.) above
d) none of the above
2) A questionnaire is __________
a) a list of answers
b) Doubtful Conclusions
c) inaccuracy
d) all the above
3) This method involves study of each and every item of the universe
a) Sample
b) Census
c) Random sampling
4) Under which method, chits are taken out to from a sample?
a) Lottery method
b) Tippet‟s method
c) Sample method
5) Data originally collected in the process of investigation are known as
a) Secondary data
b) Third data
c) Primary data
d) None
6) Secondary data is
a) Data collected in the process of investigation
b) Data collected from some other agency
c) Both
d) None
7) Which of the following is not the published source
a) Semi government publications
b) International publications
c) Government publications
d) Web site
8) Following are the method of collecting primary data except
a) Direct personal interviews
b) Mailed questionnaire method
c) Information through correspondents
d) Stratified sampling
9) When from a few units out of the entire population is chosen is called
a) Census method
b) Sample method
c) Both
d) None

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10) Census
a) When from a few units out of the entire population is chosen
b) In which data is collected from each and every unit
c) Both
d) None
11) Data collected by research institutions , scholars , trade associations but not published is
a) Published source
b) None
c) Personal sources
d) Unpublished source
12) A person who actually collect the desired information is called
a) Enumerator
b) Respondents
c) Investigator
d) None
13) Sample method is much better compared to sample method because
a) More expensive
b) Carried out by large no of investigator
c) It is less time consuming
d) None
14) Statistical enquiry means
a) Search for knowledge
b) Search for knowledge with the help of statistical methods
c) It is science for knowledge
d) None
15) Following are the drawback of the Direct personal investigation method
a) Limited coverage
b) It is very costly
c) This method is very elastic
d) Difficult to cover wide area
16) Under this method investigator prepare a questionnaire keeping in view the objective of
inquiry
a) Indirect Oral Investigation
b) Direct personal interviews
c) Information through correspondents
d) Information through mailed questionnaire
17) Collection of data includes
a) Method of collecting data
b) Sources of data
c) Both
d) None
18) Which of the false regarding secondary source of data
a) Collection of data from sources who have already collected data through survey
b) It implies collection of data from its original source
c) Can rely on this data as compare to primary data
d) It provides first hand information

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Very Short Answers (1 marks)
1. What type of data involve less time and less expenses and Why? 1
2. Mention two sources of secondary data. 1
What is indirect oral investigation

Short Answers (3 and 4 marks) and Long Answers (6 marks)

1. Which
7 of the following errors is more serious and why?(HOTS) 3
.(a)Sampling error
(b) Non-Sampling error
2. 8Distinguish between Primary data and secondary data 3
.
3. What are the sources of published data 3
4. Write a short note on Pilot Survey 4
5. DDifferentiate between census and Sampling method of data collection 4
6. Define the term : a) Investigotor; b ) Enumerator; c) respondent 4
7. What are the qualities of a good questionnaire 6
8. In which year will be the next Census held in India? How is Census carried out? (HOTS)

Higher Order Thinking Skills (HOTS)

Collection of Data
1) What care should be taken to select method of data collection?
To conduct an investigation, the following points should be kept in mind:
a) The size of population
b) The objective of the inquiry
c) The cost to be involved
d) The nature of inquiry
e) The extent of accuracy required
f) The extent of reliability required
2) Construct a questionnaire to collect information on the popularity of a brand of chocolate
among consumers.
3) Do samples provide better results than surveys? Give reasons for your answer

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Organization of Data
1) ________ of the data refers to the arrangement of figures in such a form that comparison of
the mass of similar data may be facilitated and further analysis may be possible
a) Analysis
b) Organization
c) Collection
d) Interpretation
2) It is the process of arranging things in groups or classes according to their resemblances
a) Classification
b) Collection
c) Analysis
d) Interpretation
3) Continuous variable
a) Assume a range of values
b) Increase in jumps
c) Both
d) None
4) Classification data based on the geographical differences of the data is
a) Spatial
b) Quantitative
c) Chronological
d) Qualitative
5) A characteristics or a phenomenon which is capable of being measured and changes its
value overtime is called
a) Variable
b) Vector
c) Sample
d) None
6) Which variable increase in jumps or in complete numbers
a) Multiple
b) Continuous
c) Individual
d) Discrete
7) Class limits means
a) A range of values which incorporates a set of items
b) Sum of upper or lower limits
c) Difference between upper or lower limits
d) Extreme values of a class are limits
8) Series of statistical data with one variable only is called
a) Discrete
b) Individual Series
c) Continuous
d) None

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9) The number of times an item occur in the series is known as
a) Class
b) Frequency
c) Variable
d) Series
10) A range of values which incorporates a set of items is called
a) Magnitude of a class interval
b) Class
c) Class limits
d) None
11) Difference between upper or lower limits
a) Class limits
b) Class
c) Extreme class
d) Class interval
12) Average value of the upper and lower limits
a) Class
b) Class limits
c) Class interval
d) Mid-value
13) An open-end class is the class which lacks
a) Higher limit
b) Either lower limit or higher limit
c) Lower limit
d) Both lower limit and higher limit
14) Following are the types of frequency distribution except
a) Cumulative frequency
b) Exclusive
c) Open ended
d) Frequency array

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 MICROECONOMICS
UNIT 4- INTRODUCTION
Points to remember:
What is an economy?
Central Problems of an economy
Allocation of resources - ‘what, how and for whom to produce?’
Full Utilisation of Resources
Economic Efficiency
Economic Growth
Why do central problems arise?
Opportunity cost
Concept of PPC- Shape of the PPC and the reasons
Marginal Opportunity Cost – Slope of the PPC

Slope of PPC =MRT = MOC = ∆Y = Amount of Good Y lost

PPC and ∆X Amount of Good X gained Central
Problems- Shift of
the PPC to the right - reasons
Microeconomics and macro economics
1. Problem of distribution of resources is related to 1
For whom to produce
what to produce
full utilization of resources
Economic growth
2. If 200 kgs of sugar is sacrificed in order to produce wheat and this sacrifice is called 1
(a) Average cost
(b) Marginal Cost
© Opportunity cost
(d) Total fixed cost
3. ------------------ of resources are necessary for the development of the economy 1
(a) Utilisation
(b) Growth
© Wastage
(d) Non utilisation
Microeconomics deals with
4. (a) Theory of production 1
(b) theory of cost
© Factor pricing
(d) All of the above

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5. PPC is concave to the origin due to 1
(a) increasing marginal opportunity cost
(b) decreasing marginal opportunity cost
© constant marginal opportunity cost
(d) None of the above
6. PPC shifts to the right when 1
(a) discovery of new resources & advancement of technology
(b) destroyal of resources & obsolete technology
© advancement of technology only in the production of one good
(d) none of the above
7. If the production possibility og good X rises by 1 unit and that of good Y falls from 20 to 15.5 units 1
then MOC is
(a) 35.5
(b) 4.5
© 5.5
(d) 15.5
8. State whether the following statements are true or false:-
(i) A point on the PPF reflects underutilization of resources 1
(ii) A point outside the PPF is unattainable from the given resources. 1
(iii) If marginal rate of transformation is fixed, then PPC will be negatively sloped straight line 1
curve.
9. Differentiate between Economic and Non-economic activities 3
10. Explain the economic meaning of production on, above or below the PPC? 3
11. Why is the PPC concave to the origin? 3
12. Explain the main differences between Micro and Macro economics 3

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 UNIT 2: CONSUMER EQUILIBRIUM AND DEMAND
Points to remember:
Concepts of utility
Total Utility

TU = MU1 +MU2+…….+MUn

TU = Σ MU
Marginal Utility
MU = TUn –TUn-1

MU = ∆TU
Law of Diminishing Marginal Utility –
graphical and numerical ∆Qx
representation
Consumer’ Equilibrium -Marginal utility analysis – Assumptions
One good case –Equilibrium in case of one commodity X occurs when

MUx = Mum

Px
Two good case/ Many goods / Law of Equi
marginal i.e ., MU in terms of rupees = Px utility -
Equilibrium in case of two commodities X and Y occurs when: (Law of Equi Marginal Utility):

MUx = MUy = MUm

Indifference Px Py curve analysis

Assumptions of Indifference approach
Concepts of Indifference curve, Indifference map
Shape of the Indifference curve –
Downward Sloping – Consumer has to sacrifice one good inorder to have more of the other good.
Convex to the origin – Slope of the IC is diminishing as consumer is willing to give less and less inorder
to have one more additional unit of the other good.
Two ICs do not intersect – Higher IC show higher level of satisfaction but at the point of intersection
show same level of satisfaction which is contradictory.

Slope of an indifference curve = Marginal Rate of Substitution (MRSxy) = ∆Y

∆X
Budget Line –
Shows all
combinations of
two goods that a consumer can buy with his given income and prices of the two goods.
Shifts of budget line – can be due to change in income or change in prices

Slope of the budget line = Px = Price Ratio

Py

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Consumer’s equilibrium – Indifference Approach/Optimal Choice

Conditions:

i) MRSxy = Px
Demand – Py
Determinants of demand -
Law of demand ii) and Diminishing MRS
Reasons for downward sloping demand curve -
• Law of diminishing marginal utility
• Income effect
• Substitution effect
• New consumers creating demand
• Effect of change in the Price of Substitute Goods on the Demand
Reasons for Shift in Demand Curve
• Effect of change in the Price of Complementary Goods on the Demand
• Effect of change in the income of the consumer and Demand - Normal good -and Inferior good
• Effect of change in the taste and preferences of the consumer on the Demand
Market Demand - Determinants of Market demand
Change in Quantity Demanded (Movement) and Change in Demand (Shift) / Differences between
Increase in demand & Expansion – Decrease in demand & Contraction
Demand function – numericals
Price elasticity of demand:
Factors effecting price elasticity of demand
Degrees of price elasticity
Measurement of price elasticity
Percentage method –
• Ed= ∆Q . P
∆P Q

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1 A rise in the income of the consumer leads to a fall in demand for the good X by the consumer, then
the good is 1
Complementary good
Substitute good
Inferior good
Normal good
2. Which of the following has inelastic demand- 1
(a) Salt
(b) A particular brand of lipstick
(c) laptop
(d) pen
3 Starting from an initial situation of consumers equilibrium, suppose the marginal utility of a rupee 1
increases, then the quantity demanded of the good will
increase
decrease
remain the same
none of the aboe
4. When the rise in demand at the same price then it is called 1
increase in demand
decrease in demand
expansion of demand
contraction of demand
5. When the percentage change in quantity demanded is more than the percentage in price then the 1
elasticity of demand is said to be
elastic
inelastic
perfectly elastic
perfectly inelastic
6. An increase in the price of ink will lead to _______________ in the demand for fountain pens 1
increase
decrease
constant
none of the above
7. If a consumer has monotonic preferences then among the two bundles available (10,8) and (8,6), the 1
consumer
a. would prefer (10, 8)
b. would prefer (8,6)
c. would be indifferent
d. would prefer (8,8)
8. When price elasticity of demand is (-) 0.2 and price reduces by 5 %, then the total outlay would 1
a. reduce
b. increase
c. constant

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 d. none of the above
9. Distinguish between inferior good and normal good. 3
10. Give three reasons for leftward shift in demand curve. 3
11. Explain in brief the properties of indifference curve. 3
12. How many commodities are to be consumed by consumer A when price of the commodity in the 3
market is Rs 4/- , and when consumer’s total utility schedule is given

Quantity Consumed 1 2 3 4 5
T U (Utils) 15 24 28 29 29

13. Price elasticity of a good is -4.When price of this good rises from Rs. 5 to Rs.6 per unit, a consumer 3
buys 40 units less. How many units did he buy at Rs. 5?
14. Ratio of the price elasticity of demand for two commodities X and Y is 1:2. 20% fall in the price of Y 4
commodity results in rise in its demand by 20 percent. What is the % fall in quantity demanded for X
commodity when its price increases by 50%
15. How does the following affect the elasticity of demand- 4
(a) availability of substitutes
(b) Proportion of income spent on the commodity.
16. How does the change in the price of related goods affect the demand of a commodity? Explain. 4
17. Explain the relationship between TU and MU with the help of a schedule and diagram. 4

18. Given P1 = 8, P2 =10 and M = Rs 40. How does price line change if P2 decrease by Rs 2, but P1 remains 4
constant? Also find the difference in slope of price line.
19. Why is there an inverse relationship between price and quantity demanded of a commodity? Explain. 6
20. Explain various degree of price elasticity of demand. Use diagram. 6
21. Discuss how the market demand curve is derived from the individual demand curves and the 6
determinants of market demand.
22. Given the market price of a good how does a consumer decide as to how many units of that good to 6
buy .Explain?
23. Explain consumer’s equilibrium in case of single commodity with the help of utility schedule. 6
24. A consumer consumes only 2 goods .What are the conditions of consumer’s equilibrium as per the 6
Utility approach. Explain the changes that will take place if the consumer is not in equilibrium.
25. Explain the distinction between shift in the demand curve and movement along the demand curve. 6
26. Explain the condition of consumer’s equilibrium using the Indifference curve analysis. Explain with a 6
diagram.

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 PERIODIC TEST- I (2023-24).
Subject: ECONOMICS Max. Marks:35
Grade: XI Time:

Name: Section: Roll

No:
General Instructions:
• This question paper consists of 2 printed pages.
• All answers to be written in the answer sheet provided.
• This paper contains 5questions of 1 mark each, 4 questions of 2 marks each, 4 questions of 3 marks
each and 2 questions of 5 marks each.
• 1mark questions are Very Short Answer Type Questions are to be answered in one sentence.
• 2 marks questions are Short Answer Type Questions are to be answered in 30-50 words.
• 3 marks questions are Short Answer Type Questions are to be answered in 50-80 words.
• 5 marks questions are Long Answer Type Questions are to be answered in 80-120words.

Section A- Statistics for economics

1. Define statistics as a singular noun.
(1)
2. Which of the following statements is not an example of statistics (1)
a. Birth rate in India is 18 per thousand as b. Ramesh has a ₹100 note in his pocket.
compared to 8 per thousand in the US.
c. Over the last ten years, India has won 60 test d. Average pocket allowance of the students
matches in cricket and lost 50 of class XI is ₹500 per month.
3. “The government and policy makers use statistical data to formulate suitable policies of economic
development”. Illustrate with two examples. (3)
4. Explain any four limitations of statistics (4)
5. a) Distinguish between quantitative and qualitative data. (2+4)
b) Examine any four characteristics of statistics in the plural sense
Section B -Indian economic development

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6. Output of good -X decreases by 500 units and output of good -Y increases by 500 units, when some
resources are shifted from the production of X to the production of Y. The marginal opportunity cost
is (1)
a. 0.2 b. 0.75
c. 0.8 d. 1.0
7. When an economy is operating on the PPC, it indicates (1)
a. Potential output> actual output b. Potential output = actual output
c. Potential output<actual output d. None of these
8. Economizing the use of resources means saving the resources for future use. Write true or false with
a reason. (1)
9. How to produce is a complex problem for less developed countries like India. Explain how? (3)
10. The following table depicts the production possibilities of commodities X and Y: (4)

Possibility A B C D E
Commodity X 0 1 2 3 4
Commodity Y 10 9 7 4 0

a) Show these production possibilities through PPC. What do the points on the curve indicate.
b) Label a point ‘F’ inside the curve. What does this point indicate?
c) Label a point ‘G’ outside the curve. What does this point indicate?
11. What are the three central problems of an economy? Why do they arise? (4)
12. a) Using a diagram explain what will happen to the PPC of Bihar if the river Kosi causes widespread
floods? (2)
b) Assuming that no resource is equally efficient in production of all goods, explain the curve which
shows production potential of the economy. Discuss its properties by giving reasons. (4)

PERIODIC TEST- I (2023-24).

Subject: ECONOMICS Max. Marks:35
Grade: XI Time:

24
 Answer key
Section A- Statistics for economics
1. In the singular sense, statistics means science of statistics or statistical methods. It
refers to techniques or methods relating to collection, classification, presentation,
analysis and interpretation of quantitative data.

(1)
2. b (1)
3. The analysis of a problem would not be possible without the availability of data on various factors
underlying an economic problem.
For example
If the government wants to make a policy to solve the problem of unemployment, reliable data is
required.
If the government wants to remove poverty and disparity in income distribution, reliable data is
required. (3)
4. -Study of numerical facts only
- Study of aggregates only
- Homogeneity of data, an essential requirement.
- Results are true only on an average etc (Explanation ) 4x1=4
5. a) Quantitative data refers to quantitative variables, qualitative data refers to qualitative attributes of
the different objects.
b)
-Aggregates of facts
-Numerically expressed
-Affected by multiplicity of causes
-Reasonable accuracy etc (Explanation) 2+4
Section B -Indian economic development
6. d (1)
7. b (1)
8. False.
Economizing the use of resources means that resources are to be used in a manner such that
maximum output is realized per unit of output. It also means optimum utilization of resources. (1)
9. How to produce is a problem concerned with the choice of technique. Broadly, one is to choose
between labour intensive technique and capital-intensive technique. Labour intensive- technique uses
more labour per unit of capital whereas capital -intensive technique uses more of capital per unit of
labour. In India, labour is abundant in relation to capital. While focusing on an ideal ratio between
labour and capital, so as to obtain the maximum output per unit of input, labour would remain
unutilized or unemployed. Thus, less developed countries like India often face the problem of
unemployment while tackling the problem of how to produce. (3)

25
10.

a) The diagram shows all the production possibilities given in the table. Points on the curve (A
to E) indicate that there is fuller utilization of resources.
b) Point ‘F’ inside the curve indicates underutilization of resources.
c) Point ‘G’ outside the curve indicates an unattainable combination. (4)
11. Central problems of an economy are.
i) What to produce? The problem of choice related to the production of different goods.
ii) How to produce? The problem of choice related to the technique of production.
iii) For whom to produce? The problem of choice related to the technique of production.
These arise because:
a) Resources are scarce in relation to unlimited wants and
b) Resources have alternative uses. (4)
12. a) If the river kosi causes widespread floods in Bihar, it will lead to destruction of resources in
Bihar. This will shift the PPC leftwards.

Initial PPC is PP1. With floods, the PPC will shift to P1P1. (2)
b) PPC shows different combinations of two goods which can be produced with the given resources
on the assumptions that
i) Resources are fully and efficiently utilized and
ii) Technique of production remains constant.
Properties:
1) PPC slopes downward. - More of Good X can be produced only with less of Good Y
2) PPC is concave to the point of origin – Rising MOC. (4)

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 PERIODIC TEST 1(2022-2023) SET 1
Subject: Economics Max. Marks: 35
Grade: 11 Time: 80 minutes
Name: Section: Roll No:
General Instructions:
• This question paper consists of 2 printed pages.
• All answers to be written in the answer sheet provided.
SECTION A: STATISTICS
1. Which of the following statements represent statistics? 1
a. Sales for the month of January are b. Monthly salary paid to Rajesh is Rs.
50000 units 20000
c. Today’s maximum temperature is 30 d. Fluctuations in potatoes price in a
degrees Celsius week
2. __________________means the aggregate of items to be studied in statistical enquiry. 1
a. Population b. Sample
c. Survey d. All of these
3. What points should the investigator bear in mind while using secondary data? 3

4. “All statistics is data, but all data is not statistics.” Justify this statement in light of the 4
features of statistics in the plural sense

5. a) What are the main sources of error while collecting data 3

b) Compare and contrast the census and sampling methods of data collection ,
3
SECTION B: MICROECONOMICS
6. Positive Economics involves statements that are________ (select the correct answer) 1
a. verifiable b. unverifiable
c. Always true d. Are based on value judgements
7. Due to the pandemic, there has been a slowdown and many firms have shut down or scaled 1
back operations. Which of the following illustrates the effect on the PPC of India?
a. Leftward shift of PPC b. Movement from a point within the
PPC to a point on PPC
c. Movement from a point on the PPC d. No effect on the PPC
to a point within the PPC
8. If Rani is offered Pizza free of cost, how much Pizza will she consume? 1

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9. Explain the economic problem of “What to Produce and How much”. Support your 3
answer with suitable examples

10. Giving reasons, comment on the shape of the Production possibility curve, based on the 4
following schedule:
Good X (units) 0 1 2 3
Good Y (units) 30 27 21 12

11. Explain the concept of Consumer Equilibrium under cardinal approach in case of one 4
good. Use Diagram

12. a) State the Law of Diminishing Marginal Utility 2

b) Rita consumes Tacos and Cookies. If the price of both Tacos and Cookies is Rs 10 ,
each, and the MU from consuming Tacos is 5 while MU of consuming Cookies is 4
2, is Rita in equilibrium? Justify Rita’s consumer behaviour

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PERIODIC TEST 1(2022-2023) SET 1

Subject: Economics Max. Marks: 35

Grade: 11 Time: 80 minutes

Name: Section: Roll No:

General Instructions:

• This question paper consists of 2 printed pages.

• All answers to be written in the answer sheet provided.
SECTION A: STATISTICS

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13. d) 1

14. _a) 1

15. Ans: Ability of collecting organization, Obj and scope of secondary data shd be the same as that of 3
the study undertaken, method of collection, time and condition of collection, definition of the unit,
accuracy ( any 3 explained)

16. Ans: aggregate of facts, numerically expressed, multiplicity of causes, etc – any 3 with explanation 4

17. Ans: a) error related to measurement of objects, errors due to wrong response, errors due to lack 3,
of response, error due to miscalculation, etc (any 3) 3

b) Comparison based on coverage, suitability, accuracy, cost, time, nature of item, verification (any
3 with explanation)

SECTION B: MICROECONOMICS

18. a) 1

19. c) 1

20. Answer: Till her saturation point / till her TU is max/ MU=0 1

21. • Resources are limited but wants are unlimited and economy cannot produce everything in 3
whatever quantity we wish to. The economy has to decide what goods and services are to be
produced. (1 mark)
• For instance which of the consumer goods like sugar, cloth, wheat, ghee, etc. are to be
produced and which of the capital goods like machines, tractors etc,. are to be produced. (1
mark)
• Similarly choice has also to be made between the production of war time goods like rifles, guns,
tanks and peace time goods like bread and butter (1 mark)
22. Ans MRT – [-, 3, 6, 9] – 1 mark 4

Shape of PPC – (a) Downward sloping because of scarcity of resources. Its not possible to increase
production of one good without reducing production of the other – 1 mark

(b) –PPC is concave to the origin. This is because of increasing MOC/ MRT. MRT is slope of PPC.
MRT = Delta Y/Delta X.

Increasing MOC implies that to produce each additional unit of good-X, more and more units of
good-Y will have to be sacrificed than before. This is because resources are not equally efficient in
production of both goods.(2 marks – ½ mark to be deducted if reason is not given)

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23. Definition - In case of a single good, a consumer will buy that qty of the good where his worth of 4
satisfaction from the last unit of the good is equal to the worth of sacrifice made on that unit of
the good. – 1 mk

Eqm condition : MUX/MUM = Px – 1 mark

Diagram 1 mark

Explanation of two diseqm cases – Case 1: MUX/MUM > Px (1 mark) & Case 2: MUX/MUM < Px (1
mark)

24. Ans: his law states that when a consumer goes on consuming more and more of Good X, his TU 2,
increases, reaches max,and then falls. His MU goes on diminishing, becomes zero and then 4
becomes negative. (2 marks)

a) Rita will be in eqm when MUT/ PT= MUC/PC (1 mark).

In this case, 10/ 5 <10/2 or MUT/ PT < MUC/PC (1 mark) so Rita is not in eqm.

In this case, Rita will increase consumption of Cookies and reduce consumption of Tacos (leading
to increase in MUT and decrease in Muc because of Law of DMU). This will continue till
equilibrium is reached (2 marks)

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