Economics · Sample Paper 1

General instructions

Section A · Statistics for Economics

1. Question 11 mark

   Statistics in the plural sense means

   1. A.methods of analysis
   2. B.numerical data
   3. C.sampling
   4. D.graphs
2. Question 21 mark

   Data collected by the investigator for the first time are

   1. A.secondary data
   2. B.primary data
   3. C.census data
   4. D.sample data
3. Question 31 mark

   The Census of India is conducted every

   1. A.5 years
   2. B.10 years
   3. C.15 years
   4. D.2 years
4. Question 41 mark

   The class mark of the class 20–30 is

   1. A.20
   2. B.25
   3. C.30
   4. D.10
5. Question 51 mark

   Number of children in a family is a

   1. A.continuous variable
   2. B.discrete variable
   3. C.attribute
   4. D.constant
6. Question 61 mark

   Which diagram shows the share of each part in a whole?

   1. A.histogram
   2. B.pie diagram
   3. C.ogive
   4. D.line graph
7. Question 71 mark

   The median of 3, 8, 5, 12, 7 is

   1. A.5
   2. B.7
   3. C.8
   4. D.12
8. Question 81 mark

   Which average is affected most by extreme values?

   1. A.mean
   2. B.median
   3. C.mode
   4. D.quartile
9. Question 91 mark

   The value of the correlation coefficient lies between

   1. A.0 and 1
   2. B.−1 and 1
   3. C.−∞ and ∞
   4. D.0 and ∞
10. Question 101 mark

    The index that measures changes in the cost of living is

    1. A.WPI
    2. B.CPI
    3. C.IIP
    4. D.SENSEX
11. Question 113 marks

    Distinguish between census and sample methods of data collection on three bases.

12. Question 123 marks

    Find the arithmetic mean: marks 10, 20, 30, 40, 50 with frequencies 2, 3, 5, 6, 4.

13. Question 134 marks

    Explain the difference between a histogram and a bar diagram. When is a frequency polygon preferred?

14. Question 144 marks

    Find the median: class 0–10, 10–20, 20–30, 30–40, 40–50 with frequencies 5, 8, 12, 10, 5.

15. OR

    Question 144 marks

    Find the mode: class 0–10, 10–20, 20–30, 30–40, 40–50 with frequencies 5, 8, 12, 10, 5.

16. Question 154 marks

    Explain any four uses of index numbers.

17. Question 166 marks

    Calculate Karl Pearson's coefficient of correlation: X = 2, 4, 6, 8, 10; Y = 4, 6, 10, 12, 18.

18. Question 176 marks

    Construct the price index for 2024 (base 2020) by Laspeyres' method.

    | Item | Price 2020 | Qty 2020 | Price 2024 | |---|---|---|---| | A | 10 | 5 | 15 | | B | 20 | 4 | 25 | | C | 5 | 10 | 8 |

19. OR

    Question 176 marks

    Calculate Spearman's rank correlation: ranks in Maths 1, 2, 3, 4, 5 and in Science 2, 1, 4, 3, 5. Interpret the result.

Section B · Introductory Microeconomics

1. Question 181 mark

   The basic economic problem arises because of

   1. A.unlimited resources
   2. B.scarcity of resources
   3. C.money
   4. D.government
2. Question 191 mark

   A point inside the production possibility curve shows

   1. A.full employment
   2. B.underutilisation of resources
   3. C.growth
   4. D.an impossible output
3. Question 201 mark

   The slope of the budget line is

   1. A.$-P_x/P_y$
   2. B.$P_y/P_x$
   3. C.$M/P_x$
   4. D.MRS
4. Question 211 mark

   Demand for a normal good falls when

   1. A.income rises
   2. B.income falls
   3. C.price falls
   4. D.price of substitute rises
5. Question 221 mark

   If price falls by 10% and quantity demanded rises by 20%, price elasticity of demand is

   1. A.0.5
   2. B.1
   3. C.2
   4. D.20
6. Question 231 mark

   Total product is maximum when marginal product is

   1. A.maximum
   2. B.zero
   3. C.negative
   4. D.equal to AP
7. Question 241 mark

   Which cost curve is a rectangular hyperbola?

   1. A.AVC
   2. B.AFC
   3. C.MC
   4. D.AC
8. Question 251 mark

   Under perfect competition, a firm is a

   1. A.price maker
   2. B.price taker
   3. C.monopolist
   4. D.price discriminator
9. Question 261 mark

   A firm shuts down in the short run if price falls below minimum

   1. A.AC
   2. B.AVC
   3. C.AFC
   4. D.MC
10. Question 271 mark

    A price ceiling set below the equilibrium price leads to

    1. A.surplus
    2. B.shortage
    3. C.no effect
    4. D.fall in demand
11. Question 283 marks

    Explain the three central problems of an economy.

12. Question 293 marks

    State three properties of indifference curves.

13. Question 304 marks

    Complete the table and identify the stage of diminishing returns. Units of labour 1–5; TP = 10, 24, 36, 44, 48.

14. Question 314 marks

    Explain the two conditions of producer's equilibrium using the MR–MC approach.

15. OR

    Question 314 marks

    What is the difference between a movement along a supply curve and a shift of the supply curve? Give one cause of each.

16. Question 324 marks

    Explain with a diagram the effect of an increase in demand on equilibrium price and quantity (supply unchanged).

17. Question 336 marks

    Explain consumer's equilibrium in the case of two goods using the indifference curve approach. What happens if MRS is greater than the price ratio?

18. Question 346 marks

    Explain the relationship between AC, AVC and MC curves with a diagram.

19. OR

    Question 346 marks

    Explain price floor with an example. What are its consequences?