CBSE Class 11 Economics Sample Paper - 1 | Economics Class 11 - Commerce PDF Download

CBSE Class 11 Economics
 Sample Papers 01

Time: 3 Hours Max. Marks: 80

 General Instructions:
 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
 possible.

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?
 a. Mean
 b. Inter-quartile Range
 c. Standard Deviation
 d. Range
 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)
 Ans:
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.
OR
What are the fundamental differences between bar chart and histogram?
Difference between Histograms and Bar Charts:
Bar Chart

• The columns are positioned over a label that represents a categorical variable.
• The height of the column indicates the size of the group defined by the categories.

Histogram

• The columns are positioned over a label that represents a quantitative variable.
• The column label can be a single value or a range of values.

Q7. Define histogram and Construct a histogram from given data: 

 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:-

Ans: 

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

OR
Define median and find the median in the set of numbers given below:
15, 16, 15, 7, 21, 18, 19, 20, 11
OR
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.
 OR
What do mean by Lorenz Curve? What are the properties of it?
 Ans:
 First, calculate the mean:

= 59
Now, find  the  standard deviation

Using the information from the above table, we can see that

OR
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:

Ans:

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.?
 Ans: 
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
population.

Q15. Pakistan adopt policy of denationalization and encouragement to private sector in 
a.1960 s
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.
OR
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.
OR
Q19. Differentiate between physical capital and human capital.
Ans: 

Q20. Distinguish between 'Green Revolution' and 'Golden Revolution'.
Ans: 

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

Q22. Define the following terms
(a) Disinvestment (b) Devaluation (c) Outsourcing
Ans:
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
private sector.
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.
OR
Q22. (a) IMF (b) WTO (c) IBRD
Ans: 
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
of:
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
transactions.

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)
 Ans: 
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.