Economics · Sample Paper 2

General instructions

Section A · Statistics for Economics

1. Question 11 mark

   Which of the following is an economic activity?

   1. A.a mother cooking for her family
   2. B.a teacher teaching in a school for salary
   3. C.playing cricket with friends
   4. D.helping a neighbour
2. Question 21 mark

   In a questionnaire, questions should be

   1. A.long and complex
   2. B.short, clear and simple
   3. C.personal
   4. D.leading
3. Question 31 mark

   A sample in which every unit has an equal chance of being selected is a

   1. A.random sample
   2. B.judgement sample
   3. C.quota sample
   4. D.convenience sample
4. Question 41 mark

   In the exclusive method, the class 10–20 includes

   1. A.10 but not 20
   2. B.20 but not 10
   3. C.both 10 and 20
   4. D.neither
5. Question 51 mark

   The number of observations falling in a class is its

   1. A.class mark
   2. B.class frequency
   3. C.class width
   4. D.range
6. Question 61 mark

   A graph of cumulative frequencies is called

   1. A.histogram
   2. B.ogive
   3. C.frequency polygon
   4. D.pie chart
7. Question 71 mark

   The mode of 2, 4, 4, 5, 6, 4, 7 is

   1. A.4
   2. B.5
   3. C.6
   4. D.2
8. Question 81 mark

   The sum of deviations of observations from their arithmetic mean is always

   1. A.positive
   2. B.negative
   3. C.zero
   4. D.one
9. Question 91 mark

   If r = −1, the correlation is

   1. A.perfect positive
   2. B.perfect negative
   3. C.zero
   4. D.moderate
10. Question 101 mark

    The base year index number is always

    1. A.0
    2. B.1
    3. C.100
    4. D.1000
11. Question 113 marks

    Distinguish between primary data and secondary data on three bases.

12. Question 123 marks

    Calculate the arithmetic mean by the step deviation method: class 0–10, 10–20, 20–30, 30–40, 40–50 with frequencies 4, 6, 10, 6, 4.

13. Question 134 marks

    Draw (describe) a pie diagram for the monthly expenditure of a family: food ₹6 000, rent ₹3 000, education ₹2 000, others ₹1 000. Find the angle for each item.

14. OR

    Question 134 marks

    Explain any four general rules for constructing a graph or diagram.

15. Question 144 marks

    Convert into a 'less than' cumulative frequency distribution and an exclusive series:

    | Marks | 1–10 | 11–20 | 21–30 | 31–40 | |---|---|---|---|---| | Students | 3 | 7 | 12 | 8 |

16. Question 154 marks

    What is a scatter diagram? Explain how it shows positive, negative and no correlation.

17. Question 166 marks

    Calculate the median and the mode from the data:

    | Wages (₹) | 100–200 | 200–300 | 300–400 | 400–500 | 500–600 | |---|---|---|---|---|---| | Workers | 5 | 12 | 18 | 10 | 5 |

18. OR

    Question 166 marks

    Calculate Karl Pearson's coefficient of correlation between X: 1, 2, 3, 4, 5 and Y: 2, 4, 5, 4, 5 and interpret it.

19. Question 176 marks

    Construct the price index for 2024 (base 2020) by the simple aggregative method and the simple average of price relatives method:

    | Commodity | A | B | C | D | |---|---|---|---|---| | Price 2020 (₹) | 20 | 40 | 10 | 30 | | Price 2024 (₹) | 30 | 50 | 15 | 45 |

Section B · Introductory Microeconomics

1. Question 181 mark

   The production possibility curve is concave to the origin because of

   1. A.constant opportunity cost
   2. B.increasing marginal opportunity cost
   3. C.decreasing opportunity cost
   4. D.unlimited resources
2. Question 191 mark

   Microeconomics studies

   1. A.national income
   2. B.individual economic units
   3. C.inflation
   4. D.unemployment
3. Question 201 mark

   When marginal utility is zero, total utility is

   1. A.zero
   2. B.minimum
   3. C.maximum
   4. D.negative
4. Question 211 mark

   Goods whose demand falls when income rises are

   1. A.normal goods
   2. B.inferior goods
   3. C.luxury goods
   4. D.complementary goods
5. Question 221 mark

   If the demand curve is a vertical straight line, price elasticity of demand is

   1. A.zero
   2. B.one
   3. C.infinite
   4. D.greater than one
6. Question 231 mark

   Marginal cost is

   1. A.TC/Q
   2. B.the change in TC from one more unit
   3. C.TFC + TVC
   4. D.AFC + AVC
7. Question 241 mark

   In the short run, which cost remains constant at all levels of output?

   1. A.total variable cost
   2. B.total fixed cost
   3. C.average fixed cost
   4. D.marginal cost
8. Question 251 mark

   Under perfect competition, the demand curve for a firm is

   1. A.downward sloping
   2. B.perfectly elastic (horizontal)
   3. C.vertical
   4. D.upward sloping
9. Question 261 mark

   Price elasticity of supply is 1 when the supply curve is a straight line

   1. A.through the origin
   2. B.parallel to the X-axis
   3. C.parallel to the Y-axis
   4. D.intersecting the Y-axis
10. Question 271 mark

    Excess demand exists when market price is

    1. A.above equilibrium
    2. B.below equilibrium
    3. C.equal to equilibrium
    4. D.zero
11. Question 283 marks

    Distinguish between a centrally planned economy and a market economy.

12. Question 293 marks

    A consumer buys 20 units at ₹10. When price falls to ₹8, she buys 30 units. Calculate the price elasticity of demand by the percentage method.

13. Question 304 marks

    Explain the law of diminishing marginal utility with a schedule.

14. OR

    Question 304 marks

    Explain any four factors that cause a rightward shift of the demand curve.

15. Question 314 marks

    Explain the law of variable proportions with its three phases.

16. Question 324 marks

    Explain with a diagram the effect of a decrease in supply on equilibrium price and quantity when demand remains unchanged.

17. Question 336 marks

    From the schedule, find the profit-maximising output using the MR–MC approach. Price = ₹10.

    | Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |---|---|---|---|---|---|---|---| | TC (₹) | 5 | 12 | 18 | 23 | 30 | 40 | 52 |

18. OR

    Question 336 marks

    Explain the features of perfect competition.

19. Question 346 marks

    Explain the relationship between total product, average product and marginal product with a schedule and diagram.