Commerce Class 11 Economics Sample Paper Set 5 2026 PDF Download

Time : 3 Hours
Maximum Marks : 80
General Instructions:

1. This question paper contains two sections:
   Section A - Statistics for Economics Section B - Introductory Micro Economics
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to he answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to he answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Q1: Read the following statements and choose the correct alternative: [1 Mark]
Statement - I Statistics plays an important role in the field of economics.
Statement - II Statistics help in analysing different economic problems which needs immediate attention.
(a) Statement I is true and Statement II is false.
(b) Statement I is false and Statement II is true.
(c) Both Statements I and II are true.
(d) Both Statements I and II are false.
Ans: (c)
Explanation: Statistics is an essential tool for economics. It provides numerical evidence about economic conditions and trends and helps economists to identify, analyse and solve economic problems. Statement II is also true because statistical methods are routinely used to analyse problems that require timely attention, for example unemployment, inflation or decline in production.

Q2: Primary data can be collected by: [1 Mark]
(a) Personal investigation
(b) Telephone interview
(c) Mailing questionnaire
(d) All of the above
Ans: (d)
Explanation: Primary data are data collected directly from original sources. They can be gathered through personal investigation, face-to-face interviews, telephone interviews, mailing questionnaires, or using local correspondents. All the listed methods are valid ways to collect primary data.

Q4: Identify the correct pair of terms with their common symbols from the following Columns I and II: [1 Mark]

(a) A - 1
(b) B - 2
(c) C - 3
(d) D - 4
Ans: (c)
Explanation: The standard symbols used are: frequency = f, assumed mean = A and arithmetic mean = X̄. The choice (c) correctly pairs these terms with their conventional symbols.

Q5: Identify the following diagram and choose the correct alternative: [1 Mark]

(a) Simple Bar Chart

(b) Multiple Bar Chart

(c) Pie Chart

(d) Histogram

Ans: (a)

Explanation: The diagram shows separate rectangular bars for individual categories, each bar representing the value of that category. This is the definition of a simple bar chart, which compares distinct items.

Q6: In less than cumulative frequency distribution, the omitted limit is: [1 Mark]
(a) Lower
(b) Upper
(c) Middle
(d) All of the these
Ans: (a)
Explanation: In a "less than" cumulative frequency distribution, the cumulative frequency for a class is recorded against the upper limit of that class. When constructing such distributions using inclusive class intervals, the lower limit of the next class is often considered omitted in the cumulative listing, so the focus is on the lower limits of succeeding class-intervals for counting values "less than" a given class.

Q7: Sushila wants to know the average of marks obtained in six different subjects. The tool that she will use is ................ . [1 Mark]
(a) Arithmetic Mean
(b) Median
(c) Mode
(d) Geometric Mean
Ans: (a)
Explanation: Arithmetic mean is the most common measure for calculating the average of marks across subjects because it uses the sum of all marks divided by the number of subjects and appropriately reflects total performance. It is sensitive to all values, which is desirable when computing an average of marks.

Q8: Median is that value of the series which is: [1 Mark]
(a) In the middle
(b) Average
(c) Whose frequency is highest
(d) None of the above
Ans: (a)
Explanation: The median is the middle value of an ordered data set and divides the distribution into two equal halves. It is the central value when observations are arranged in ascending or descending order.

Q10: If the total cost of three models of refrigerator are subdivided into 10 heads ?6400, ?100 and ?10,000 which diagram will be constructed for the comparative analysis? [1 Mark]
(a) Sub-divided bar diagrams
(b) Sub-divided rectangles
(c) Angular or sector diagram
(d) None of the above
Ans: (c)
Explanation: When total cost is broken down into parts and we wish to show their proportionate shares visually, an angular or sector diagram (pie chart) is appropriate because it represents parts of a whole as sectors of a circle.

Q11: 'The degree of closeness of scatter points and their overall direction gives us an idea of the nature of the relationship between variables.' [3 Marks]
Do you agree with the given statement? Give valid reason in support of your answer.
Ans: Yes. A scatter diagram is a graphical tool to study correlation between two variables. Points representing paired observations are plotted with one variable on the X-axis and the other on the Y-axis. From the plotted points we can infer:

1. If the cloud of points slopes upward from left to right, the correlation is positive; if it slopes downward, the correlation is negative.
2. If the points lie exactly on a straight line, there is a perfect correlation.
3. If the points cluster closely around a straight line, the degree of correlation is high; if they are widely scattered, the correlation is low.

Q12: The average marks of 100 students in a class are 48. But while calculating it, the marks of a student were written 73 instead of 53. Find out the corrected arithmetic mean. [3 Marks]

Following information pertains to the daily income of 150 families. Calculate the arithmetic mean:

Ans: Incorrect ΣX = N × X = 100 × 48 = 4,800

Correct ΣX = 4,800 - 73 + 53 = 4,780

Correct mean = ΣX / N = 4,780 / 100 = 47.8

OR

Q13: The marks obtained by 25 students in a class are as follows: [4 Marks]
22,28, 30,32,35,37,40,41,43,44,45,45,48,49,52,53,54,56,56,58,60,62,65,68,69
(a) Arrange the above data as frequency distribution taking class-interval:
20-29,30-39,40-49,50-59,60-69
(b) Form the cumulative frequency distribution also.
Ans: Here, we can convert given data into frequency distribution and cumulative frequency distribution by using tally bar and inclusive series:
(a) The frequency distribution of given data is shown below:

(b) The cumulative frequency distribution of the given data is shown below:

Q14: Find out the median for the data given below: [4 Marks]

Does zero correlation means independence?
Ans:

Median = Size of ^th item = Size of (N/2)^th item = Size of (60/2)^th item = Size of 30^th item

This lies in 60 - 80 group

Thus, Median Value =

= 60 + (30 - 25) / 6 × 20 = 60 + 16.6 = 76.6

No. Zero correlation does not mean independence. Zero correlation indicates there is no linear relationship between the two variables, but there may still exist a non-linear relationship. Independence requires that variables be unrelated in all possible ways, not only linearly; zero correlation alone is not sufficient to establish independence.

Q15: What are the desirable properties of the base period? [4 Marks]
Ans: The base period (or base year) used for comparison in index numbers or statistics should have the following properties:
(i) The base period should not be too short or too long: For practical calculations, the period chosen should be of reasonable length (commonly one year), not a very short period like a few days or an excessively long period that makes comparisons meaningless.
(ii) The base period should not be too near or too far from the current period: If it is too distant, comparisons become irrelevant; if it is too close, it may fail to capture meaningful changes in tastes or technology.
(iii) Data for the base period should be reliably available: Accurate and complete data must be accessible for the chosen base period to permit valid comparisons.
(iv) The base period should be periodically updated: To reflect structural changes in the economy (changes in consumption patterns, technology, etc.), the base period should be revised at appropriate intervals so that comparisons remain meaningful.

Q16: (a) From the following data, calculate Karl Pearson's coefficient of correlation: [3 Marks]

(b) Do you agree that classified data is better than raw data? [3 Marks]

                                                                                                    OR

(a) 'Statistics are figures, but all figures are not statistics'. Justify the statement. [3 Marks]
(b) If the points in a scatter diagram tend to cluster in a straight line which makes an angle of 30° with the X-axis, what would you say about the strength of association between X and Y ? [3 Marks]
Ans:  (a)

(b) The classified data has following advantages over the raw data:

1. Comprehensive: Raw data are large and entangled, whereas classified data are comprehensive and easily manageable.
2. Quick Information: It is troublesome to pick up information from unclassified data. Information can be easily collected from the classified data.
3. Conclusions: Classification facilitates comparisons and helps in drawing fast conclusions or inferences.
4. Saves Time and Energy: Classified data not only save our time but also our energy, which would otherwise be utilised in searching from entire lot of things.

(a) Statistics are numerical summaries that express aggregate facts in a form suitable for comparison and analysis. Many numbers exist (for example, a person's height or a single invoice amount), but they become statistics only when placed in context, aggregated or related so as to support analysis. Hence "figures are not all statistics" - only figures that are organised, comparable and meaningful qualify as statistics.
(b) If the points in a scatter diagram cluster along a straight line making a 30° angle with the X-axis, there is a positive linear association of moderate strength: the slope is positive but not steep, implying that as X increases, Y increases at a proportionally smaller rate.

Q17: Calculate the value of median, first quartile (Q1), and third quartile (Q3) for the following data: [6]

Ans: Calculation of First and Third Quartile and Median

= 50 + 1.1= 51.1

Q18: If MR is more than MC at a particular level of output, then producer will:
(a) Reduce production
(b) Increase production
(c) Keep the production at current level
(d) None of these
Ans: (b)
Explanation: If marginal revenue (MR) exceeds marginal cost (MC) for an additional unit, producing that unit increases profit. Therefore the producer will increase output until MR equals MC.

Q19: Which of the following statement is true: [1 Mark]
(a) When MU is negative, TU will be increasing. 
(b) When MU is positive, TU will be decreasing.
(c) When MU is zero, TU is maximum.
(d) None of these
Ans: (c)
Explanation: Total utility (TU) increases while marginal utility (MU) is positive, reaches a maximum when MU becomes zero, and then starts decreasing when MU becomes negative. Thus MU = 0 corresponds to maximum TU.

Q20: If a good takes up significant share of consumers' budget, it will be: [1 Mark]
(a) Less elastic
(b) Highly elastic
(c) Unitary elastic
(d) Perfectly elastic
Ans: (b)
Explanation: Goods that take a large share of a consumer's budget are generally more price-sensitive, because price changes noticeably affect the consumer's overall spending; hence demand tends to be more elastic.

Q21: Study the following curve. Point E should be identified as which of the following alternative [1 Mark]

Identify the point E in above curve?
(a) AP = MP

(b) MP > AP

(c) MP < AP

(d) None of these

Ans: (a)

Explanation: Point E marks the position where marginal product (MP) equals average product (AP). At this point AP attains its maximum, and MP intersects AP.

Q22: Read the statements Assertion (A) and Reason (R) and choose the correct alternative: [1 Mark]
Assertion (A): Rare commodities like antiques do not follow the law of diminishing marginal utility.
Reason (R): Law of marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from additional unit must decline.
(a) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct, 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.
Ans: (b)
Explanation:
(i) Assertion: Rare commodities such as antiques may not follow the law of diminishing marginal utility because additional units may increase in desirability and thus the marginal utility can rise.
(ii) Reason: The law of diminishing marginal utility states that marginal utility tends to decline as more units are consumed, other things being equal.
(iii) Justification: Both statements are true, but the Reason is a general statement of the law; it does not directly explain why rare commodities are exceptions. The exceptional behaviour of antiques stems from rarity and increasing perceived value, not from the general law itself.

Q23: If TR is ₹1,00,000 when 20,000 units are sold, then AR is equal to: [1 Mark]
(a) ₹1, 00,000
(b) ₹20,000
(c) ₹5
(d) ₹1, 20,000
Ans: (c)
Explanation: Average revenue (AR) = Total revenue (TR) / Quantity (Q) = ₹100,000 / 20,000 = ₹5 per unit.

Q24: Which of the following is a cause of a rightward shift of demand curve: [1 Mark]
I - Increase in the income of the consumer.
II - Price of substitute goods has increased.
III - Price of complementary goods has fallen.
(a) Only I
(b) Both I and II
(c) I, II and III
(d) None of these
Ans: (c)
Explanation: A rightward shift in the demand curve means greater quantity demanded at each price. This can be caused by higher consumer income (for normal goods), a rise in the price of substitutes (making this good relatively cheaper), or a fall in the price of complements (making the combined purchase more attractive). All three lead to increased demand.

Q25: Under perfect competition, the firm earns normal profit in the long run because of : [1 Mark]
(a) Large number of buyers and sellers
(b) Absence of selling cost
(c) Free entry and exit
(d) Homogeneous commodity
Ans: (c)
Explanation: Free entry and exit ensure that when firms earn supernormal profit new firms enter, increasing supply and lowering price until only normal profit remains. Conversely, losses cause exit and raise price back to normal profit. Thus free entry and exit are the key reason for normal profit in the long run.

Q26: There are two statements given below, marked as Statement (I) and Statement (II). Read the statements and
choose the correct option. [1 Mark]
Statement -1: In the short run, the firm cannot vary the fixed factors of production.
Statement - II: The expenditure incurred by the producer in fixed assets are known as fixed factor.
In light of the given statements, choose the correct alternative from the following:
(a) Statement I is true and Statement II is false
(b) Statement I is false and Statement II is true
(c) Both statements I and II are true
(d) Both statements I and II are false
Ans: (c)
Explanation: In the short run some factors (fixed factors) cannot be changed by the firm, so Statement I is true. Expenditure on fixed assets (like machinery, buildings) are examples of costs associated with fixed factors; thus Statement II as given is interpreted as intended and is considered true. Therefore both statements are true.

Q27: Identify the correct pair of items from the following Columns I and II: [1 Mark]

(a) A - I

(b) B - II

(c) C - III

(d) D - IV

Ans: (b)

Explanation: The option (b) correctly matches the item from Column I with its corresponding description in Column II. For example, a price ceiling is a legally imposed maximum price sellers can charge, which is matched correctly in the pair.

Q28: Explain the implications of the feature "homogeneous product" in a perfectly competitive market. [3 Marks]

What is minimum price ceiling? Explain its implications.
Ans: A product being perfectly homogeneous implies that every unit of the product is identical in all relevant respects - quality, size, shape, colour and other characteristics. The implications are:

• No seller can charge a higher price for the product, because buyers will switch to identical products offered by other sellers.
• Individual firms have no control over price and are price takers; the market-determined price prevails.
• The firm's demand curve is perfectly elastic (a horizontal line) at the market price because an infinite number of units can be sold at that price but none at a higher price.

For certain goods and services, government sets minimum price. This minimum price is called minimum price ceiling. This price is normally set at a level higher than the equilibrium price. This leads to excess supply. Since producers are not able to sell all they want to sell, they illegally sell the goods or services below the minimum price.

Q29: An individual is both the owner and the manager of shop taken on rent. Identify implicit cost and explicit cost from this information. Explain. [3 Marks]
Ans: In this situation:

• Explicit cost: The rent paid for the shop. This is a monetary payment made to an external party and is recorded as a cost.
• Implicit cost: The owner's own managerial services. Since the owner does not pay a market wage to himself, the opportunity cost of his time and effort is an implicit (non-monetary) cost.

Q30: Consider the demand for goods. At price ₹4, the demand for the goods is 25 units. Suppose price of the goods increases to ₹5, and as a result, the demand for the goods falls to 20 units. Calculate the price elasticity. [4 Marks]
Ans: Elasticity of demand (price elasticity) = (% change in quantity demanded) / (% change in price)
Using point changes:
Initial P = ₹4, Q = 25; New P = ₹5, Q = 20
ΔP = 1, ΔQ = -5
Elasticity = - (ΔQ / ΔP) × (P / Q) = - (-5 / 1) × (4 / 25) = (5) × (4 / 25) = 20 / 25 = 0.8
Since elasticity = 0.8 < 1,="" demand="" is="" />inelastic.

Q31: Calculate Marginal Cost at each level of output: [4 Marks]

State whether the following statements are true or false. Give reasons for your answer.
(a) Average product increases only when marginal product increases.
(b) Total cost can never be constant.
(c) Total revenue increases with every increase in output.
Ans: 

                                                                                                                            OR

(a) False, because average product (AP) increases whenever marginal product (MP) is greater than AP; MP can be above AP even when MP itself is falling. So AP does not require MP to be increasing, only MP to exceed AP.
(b) True, because total cost (TC) includes a positive fixed cost component; for TC to be constant across outputs, marginal cost (MC) would have to be zero, which is not realistic in typical production processes.
(c) False, because total revenue (TR) increases with output only if price does not fall sufficiently. When a firm lowers price to sell additional units (e.g., under imperfect competition), TR may eventually fall despite higher output.

Q32: Short run costs are represented in following curve. Discuss how are they related? [4 Marks]

Ans: Relationship between TC, TFC, and TVC

TFC (Total Fixed Cost): This remains constant at all levels of output in the short run because fixed factors cannot be changed.

TVC (Total Variable Cost): TVC rises as output increases since more variable inputs (like labour) are used. Initially TVC may rise at a decreasing rate (due to increasing returns) and later at an increasing rate (due to diminishing returns).

TC (Total Cost): TC = TFC + TVC. Hence TC follows the same pattern as TVC but is always higher by the amount of TFC.

Point Z: Up to point Z, TVC (and thus TC) rises at a decreasing rate; after Z, TVC and TC rise at an increasing rate.

Differences: The vertical distance between TC and TVC curves at any output equals TFC.

Q33: (a) Explain the problem of 'what to produce' with the help of an example. Does it arise in every economy? Explain. [3 Marks]
(b) The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of the firm. Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm. [3 Marks]

OR

(a) Assuming that no resources are equally efficient in production of all goods name the curve which shows production potential of an economy. Explain, giving reasons, its properties. [3 Marks]
(b) The following table gives the total cost schedule of a firm. It is also given that the average fixed cost at 4 units
of output is ₹5. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output. [3 Marks]

Ans: (a) Every economy faces the problem of what to produce because resources are scarce and not all wants can be satisfied. The decision concerns which goods and services to produce and in what quantities. For example, with limited resources a country may choose between allocating more resources to produce defence equipment (guns) or consumer goods (butter). The choice depends on societal priorities, market signals, or planning decisions. This problem arises in every economy-market, mixed, or planned-because scarcity of resources is universal.

(b) 

                                                                                                                          OR

(a) The curve is called Production Possibility Curve (PPC). PPC shows the combinations of two goods that an economy can produce when resources are fully and efficiently utilized at a given technology level.

Properties of PPC:
(i) PPC is downward sloping - producing more of one good requires sacrificing some of the other due to limited resources.
(ii) PPC is concave to the origin because of increasing marginal opportunity cost: as more resources are shifted from one good to another, less suitable resources are used and the opportunity cost rises.

(b)

Q34: Read the passage given below and answer the questions that are followed:
The resources of an economy are limited in comparison to what the people in the economy want to have. The scarce resources have alternative usages and every society has to decide on how much of each of the resources to use in the production of different goods and services. So, every society has to determine how to allocate its scarce resources to different goods and services. An allocation of the scarce resources of the economy gives rise to a particular combination of different goods and services. Given the total amount of resources, it is possible to allocate the resources in many different ways and, achieving different mixes of all possible goods and services. The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibilities of the economy. 
On the basis of the given text and common understanding, answer the following questions:
(a) What will likely be the impact of large scale outflow of foreign capital on Production Possibility Curve of
the economy and why? [2 Marks]
(b) What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the
Production Possibility Curve of the economy and why? [2 Marks]
(c) Explain the central problem 'how to produce'. [2 Marks]
Ans: (a) Large-scale outflow of foreign capital reduces the resources available for production. This lowers the country's production potential and shifts the PPC inward (to the left), indicating fewer possible combinations of goods and services.
(b) Improved sanitation and public health from a mission like Swachh Bharat reduce illness and absenteeism, raise labour productivity and efficiency, and thus increase the economy's productive capacity. This shifts the PPC outward (to the right), indicating a higher production potential.
(c) 'How to produce' concerns the choice of production techniques - whether to use a labour-intensive method (more labour, less capital) or a capital-intensive method (more capital, less labour). The choice depends on relative factor costs, technology and policy objectives, and aims to use resources most efficiently.