CBSE Class 11 Economics
Sample Papers 01
Time: 3 Hours Max. Marks: 80
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Question No 1-4 and 13-16 are very short-answer questions carrying 1 mark each. They
are required to be answered in one sentence each.
4. Question No 5-6 and 17-18 are short-answer questions carrying 3 marks each. Answer to
them should not normally exceed 60 words each.
5. Questions No 7-9 and 19-21 are also short-answer questions carrying 4 marks each.
Answer to them should not normally exceed 70 words each.
6. Questions No 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answer
to them should not normally exceed 100 words each.
7. Answer should be brief and to the point and the above word limit be adhered to as far as
SECTION - A
Q1. What is Economics?
Ans: Economics is the way to adjustment between unlimited wants and limited or scare resources through which maximum want may be satisfy.
Q2. What is the size of small sampling?
Ans:A Sample size 'N' of less than 30 elements / data is called small sampling.
Q3. What is frequency?
Ans: Frequency is the number of occurrences of a repeating event per unit time.
4. Which one these is unaffected by outliers?
b. Inter-quartile Range
c. Standard Deviation
Ans: (b) Inter-quartile Range
Q5. Discuss the importance of statistics in Economics?
Ans: Statistics play an important role in economics. Economics largely depend upon statistics. National income accounts are multipurpose indicators for the economists and administrators. ii. In economics research statistical methods are used for collecting and analysis the data and testing hypothesis. iii. The relationship between supply and demands is studies by statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which require good knowledge of statistics.
Q6. What are the fundamental differences between primary and secondary data? (3)
The fundamental differences between primary and secondary data are discussed in the following points:
i. The term primary data refers to the data originated by the researcher for the first time. Secondary data is the already existing data, collected by the investigator agencies and organizations earlier.
ii. Primary data collection sources include surveys, observations, experiments, questionnaire, personal interview, etc. On the contrary, secondary data collection sources are government publications, website, books, journal article, internal records etc.
iii. Data collected through primary sources and more reliable and accurate as compared to the secondary sources.
What are the fundamental differences between bar chart and histogram?
Difference between Histograms and Bar Charts:
Q7. Define histogram and Construct a histogram from given data:
Age in Month
140 & more
No. of Subject about mortality
Ans: A histogram is a graphical representation of frequency distribution or cross sectional numerical data. A histogram consisting of rectangles whose area is proportional to frequency of a variable and whose width is equal to the class interval.
Q8. Find the mean by direct method of the set of ages in the table below:-
No. of Students in class
n = 20
sum = (10 x 0) + (11 x 8) + (12 x 3) + (13 x 2) + 14 x 7)
sum = 0 + 88-36 + 26 +98 sum = 248 mean = 12.4 years
Define median and find the median in the set of numbers given below:
15, 16, 15, 7, 21, 18, 19, 20, 11
Median: The median is defined as the number in the middle of a given set of numbers arranged in order of increasing magnitude. When given a set of numbers, the median is the number positioned in the exact middle of the list when you arrange the numbers from the lowest to the highest. The median is also a measure of average. In higher level statistics, median is used as a measure of dispersion. The median is important because if describes the behaviour of the entire set of numbers.
From the definition of median, we should be able to tell that the first step is to rearrange the given set of numbers in order of increasing magnitude, i.e. from the lowest to the highest 7, 11, 15, 15, 16, 18, 19, 20, 21
Then we inspect the set of find that number which lies in the exact middle.
Median = 16
Q9. Find the modal class and the actual mode of the data set below:
Ans: Modal class = 10 - 13
Q10. A hen lays eight eggs. Each egg was weighed and recorded as, 60g, 56g, 68g, 51g, 53g, 69g & 54g. Find the Mean and Standard Deviation.
What do mean by Lorenz Curve? What are the properties of it?
First, calculate the mean:
Now, find the standard deviation
Weight of eggs, in grams
Using the information from the above table, we can see that
In economics, the Lorenz Curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O. Lorenz in 1905 for representing
inequality of the wealth distribution. The curve is a graph showing the proportion of overall income or wealth assumed by the bottom x% of the people, although this is not rigorously true for a finite population (see below).
It is often used to represent income distribution, where it shows for the bottom x% of households, what percentage (y%) of the total income they have. The percentage of households is plotted on the x-axis, the percentage of income on the y-axis. It can also be used to show distribution of assets. In such use, many economists consider it to be a measure of social inequality.
Properties of Lorenz Curve:
1. A Lorenz curve always starts at (0,0) and ends at (1,1).
2. The Lorenz curve is not defined if the mean is zero or infinite.
3. The Lorenz curve for a distribution is a continuous function.
4. The information in a Lorenz curve may be summarized by the Gini coefficient.
5. The Lorenz curve cannot rise above the line of perfect quality.
Q11.Find the value of the correlation coefficient from the following table:
Glucose Level 'Y'
Glucose Level 'Y'
The range of the correlation coefficient is from -1 to 1.
Our result is 0.5298, which means the variable have a moderate positive correlation.
Q12. What do you mean by index number? Explain the types and uses of Index No.?
Index numbers are meant to study the change in the effects of such factors or variable (or a group of variables) over a specified time, which cannot be measured directly.
Types of Index Number:
Following types of index numbers are generally used
i.Price Index Numbers: These index numbers shows changes in the wholesale or retail prices.
ii. Quantity Index Numbers: These index numbers measure changes in the volume or quantity of goods.
iii. Aggregate Index Numbers: These index numbers are used to measure changes in a phenomenon like cost living, industrial production etc. Such index numbers involve
both quantities and prices of items appropriate to given situation.
Use of Index Numbers:
i An index number is device for measuring changes in a variable on a group of related variables.
ii. The index number of industrial activity enables us to study the progress of industrialization in the country.
iii. These cost of living index numbers show changes in the prices of goods generally consumed by people.
iv. Index no. helps government to formulate its price policies. They are also used to evaluate the purchasing power of money.
v. Index numbers are also being used for forecasting business and economic activities, business cycles etc.
SECTION - B
Q13. Who known as Architect of Indian Planning?
Ans: Prashant Chandra Mahalanobis
Q14. What is Green Revolution?
Ans: Green Revolution was a period when India adopted the policy of using chemical fertilizers, pesticides and high- yield crop varieties to achieve high increase in crop
Q15. Pakistan adopt policy of denationalization and encouragement to private sector in
b. 1970 s
c. 1980 s
d. 1990 s
Ans: (c) 1890 s
Q16. Abbreviate the SAARC.
Ans:SAARC (South Asian Association for Regional Cooperation)
Q17. What is meant by 'Food or Work' Programme?
Ans: Food for Work Programme initiated in 1970 and incorporated as the National Rural Employment Programme in the Sixth Plan. It started back in April 1977. The objective of the programme was to provide additional resources so that generation of supplementary wages employment and providing of food-security. It was renamed in November 2004 as National Food for Work Programme.This program was subsumed with the National Rural Employment Guarantee Act (NREGA) in February 2006.
Q17. What is meant by 'MNREGA'?
Ans: The Central Government formulated the National Rural Employment Guarantee Act (MGNREGA) in 2005.The Act covered 200 districts in its first phase. implemented on
February 2. 2006, and was extended to 130 additional districts in 2007-08.
All the remaining rural areas have been notified with effect from April 1, 2008.
Right based Framework: For adult members of a rural household willing to do unskilled manual Work.
Time bound Guarantee: 15 days for provision of employment, else unemployment allowance. Upto 100 days in a financial year per household, depending on the actual demand.
Q18. Write the three major sources of human capital in India.
Ans: Human capital refers to the Stock of skill and expertise of a nation at a point of time. Education, health, skill and training are considered an important input for the
development of a nation. The three major sources of human capital in a country are:
i. Investment in education
ii. Investment in health
iii. Investment in skill and training
Q19. Explain the economic reform in India in context of LPG policy.
Ans: The salient features of economic reform in India i.e. new economic policy are
liberlisation, privatisation and globalisation of the economy (LPG policy).
i. Liberalisation: Simply speaking liberalisation means to free to economy from the controls imposed by the Govt. Before 1991, Govt. had put many types of controls on
Indian economy. These were as follows: (a) Industrial Licensing System (b) Foreign exchange control (c) Price control on goods (d) Import License
ii. Privatisation: Simply speaking, privatisation means permitting the private sector to set up industries which were previously reserved for the public sector. Under this
policy many PSU's were sold to private sector.
iii. Globalization: Literally speaking Globalisation means to make Global or worldwide, otherwise taking in to consideration the whole world. Broadly speaking, Globalisation
means the establishment of relations of the economy with world economy in regard to foreign investment, trade, production and financial matters.
Q19. Differentiate between physical capital and human capital.
It increases physical goods.
It increases knowledge and efficiency.
It is a economic and technical
It is partly asocial process.
Physical capital is tangible.
Human capital is intangible.
lt can be sold in the market.
It can't. be sold in the market.
The physical capital is separable
Human capital is not separable
from its owner.
Physical capital formation can
be built even through imports
Human capital formation is to be done
through conscious policy formulations.
Q20. Distinguish between 'Green Revolution' and 'Golden Revolution'.
The introduction of High- Yielding
Varieties (HYV) of seeds and the
increased use of
fertilizers, pesticides arid
irrigation facilities are known as
the Green Revolution.
The rapid growth in the production of diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal
and aromatic plants, spices and plantation
crops is known as Golden Revolution.
lt led to increase in the
production, especially, of rice and
It led to Increase in production of fruits. Vegetables, flowers, aromatic plants spices,
Green Revolution made India
self- sufficient in the production of
Golden Revolution made India a
world leader in the production of
mangoes, bananas, coconut and spices.
Green Revolution provided
food security and raised agricultural incomes.
Golden Revolution provided nutrition and sustainable livelihood options.
Q21. Differentiate between commercial and non-commercial sources of energy.
Ans: Energy is an essential part of the development process of a nation. There are two types of sources of energy-commercial and non-commercial. The difference between the two is as follows
The sources of energy that
are available at price are referred to as commercial energy.
The sources of Energy that are usually
available free of cost to the users are
referred to as noncommercial energy.
Examples air, coal, petroleum, natural gas and
Examples are: Firewood, agricultural waste, dried dung.
This form of energy is used for commercial purposes
and domestic consumption mainly
in urban areas.
This form of energy is used for domestic
consumption manly in rural areas.
These are generally renewable.
There are generally exhaustible.
Q22. Define the following terms
(a) Disinvestment (b) Devaluation (c) Outsourcing
a. Disinvestment: In most contexts, disinvestment typically refers to sale to sale of shares from the government, partly or fully of a government-owned enterprise to
b. Devaluation: Devaluation is a monetary policy tool used by govt. of a country officially, to reduce the price of domestic currency in respect of foreign currency or
currencies group in huge quantity that have a fixed exchange rate or semi-fixed exchange rate.
c. Outsourcing: Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it
internally. Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with than it is to
produce the good internally.
Q22. (a) IMF (b) WTO (c) IBRD
IMF: The international Monetary Fund (IMF) is an international organization created for the purpose of standardizing global financial relations and exchange rates. The
IMF generally monitors the global economy and its core goal is to economically strengthen its member countries. Specifically, the IMF was created with the intention
i. Promoting global monetary and exchange stability.
ii. Facilitating the expansion and balanced growth of international trade.
iii. Assisting in the establishment of a multilateral system of payments for current
b. WTO: The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. The WTO officially commenced on 1 January 1995
under the Marrakesh Agreement. signed by 123 nations on I5 April 1994, replacing the General Agreement on Tariffs and Trade (GATT). which commenced in 1948.
c. IBRD: The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing
countries. The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C. United States. It was
established in I944 with the mission of financing the reconstruction of European nations devastated by World War II.
Q23. Outline the some important steps to attaining sustainable development in India.
Ans: Sustainable development refers to the achievement of economic development by careful and judicial utilization of the natural resources so that the present generations' needs are fulfilled without compromising that of the future generations'. Aligned with the view of a leading environmental economist, Herman Daly, India has taken the following steps to achieve the aim of sustainable development:
(i) Population Control Measures: India has promoted various measures to arrest population explosion. The various population control measures include spread of awareness and knowledge of birth control measures and literacy.
(ii) Use of Environment Supportive Fuel: As the fuels such as petrol and diesel emit huge amount of carbon dioxide that leads to global warming, so, the Indian government has promoted the use of CNG and LPG. These clean, eco-friendly fuels emit lesser smoke.
(iii) Use of Solar and Wind Energy: India being a moderate country is enriched with sunlight and wind power. These are two free gifts of nature that is non-exhaustible. It solves the problem of economic growth with due focus on sustainable development.
(iv) Recycling and Ban on Plastic Bags: The industrial and household wastes are accumulated on daily basis. There is a need to develop the habit of recycling of waste products in order to sustain the environment. Household waste can be used as manure for organic farming. A very recent step taken by the Indian government is banning the use of plastic bags. This is a very good step as plastic bags do not get decomposed easily and leads to pollution while recycling.
(v) Pollution Tax and Fines: Indian government has taken many steps to control pollution. Some of the measures are regular vehicle checkups, levying pollution tax on the industries emitting smoke. These measures are coupled with huge fines and even imprisonment for the law breakers.
Q24. Explain the following:
a. Great Proletarian Cultural Revolution (GPCR)
b. Great Leap Forward (GLF)
c. Special Economic Zones (SEZ)
a. Great Proletarian Cultural Revolution (GPCR): In 1965, Mao introduced the Great Proletarian Cultural Revolution (1966–76) under which students and professionals
were sent to work and learn from the countryside.
b. Great Leap Forward (GLF): The Great Leap Forward (GLF) campaign initiated in 1958 aimed at industrialising the country on a massive scale. People were encouraged
to set up industries in their backyards.
c. Special Economic Zones (SEZ): An SEZ is an enclave within a country that is typically duty-free and has different business and commercial laws chiefly to encourage investment and create employment. Apart from generating employment opportunities and promoting investment, SEZs are created also to better administer these areas, thereby increasing the ease of doing business.