Economics · Sample Paper 3

General instructions

Section A · Statistics for Economics

1. Question 11 mark

   Which of these is a function of statistics?

   1. A.it presents facts in a definite form
   2. B.it creates scarcity
   3. C.it fixes prices
   4. D.it produces goods
2. Question 21 mark

   The NSSO (now NSO) is an agency that collects

   1. A.primary data on socio-economic issues
   2. B.only weather data
   3. C.only stock prices
   4. D.no data
3. Question 31 mark

   An error that arises because a sample may not represent the whole population is a

   1. A.sampling error
   2. B.non-sampling error
   3. C.measurement error
   4. D.recording error
4. Question 41 mark

   Classification of data according to time is

   1. A.spatial
   2. B.chronological
   3. C.qualitative
   4. D.quantitative
5. Question 51 mark

   In the inclusive method, the class 10–19 includes

   1. A.10 only
   2. B.19 only
   3. C.both 10 and 19
   4. D.neither
6. Question 61 mark

   A bar diagram is a

   1. A.one-dimensional diagram
   2. B.two-dimensional diagram
   3. C.three-dimensional diagram
   4. D.pictograph
7. Question 71 mark

   The arithmetic mean of 10, 20, 30, 40, 50 is

   1. A.25
   2. B.30
   3. C.35
   4. D.40
8. Question 81 mark

   Which average can be found graphically using ogives?

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

   Rank correlation was developed by

   1. A.Karl Pearson
   2. B.Charles Spearman
   3. C.Fisher
   4. D.Laspeyres
10. Question 101 mark

    The Wholesale Price Index (WPI) in India measures changes in

    1. A.prices of goods at the wholesale level
    2. B.cost of living
    3. C.industrial output
    4. D.share prices
11. Question 113 marks

    State three qualities of a good questionnaire.

12. Question 123 marks

    Find the median of the following data: 15, 8, 22, 10, 18, 25, 12, 30.

13. Question 134 marks

    Explain the difference between a histogram and a frequency polygon. Can a histogram be drawn for unequal class intervals?

14. OR

    Question 134 marks

    What is a line graph (arithmetic line graph)? When is it used? Give two advantages.

15. Question 144 marks

    Prepare a frequency distribution with class intervals 0–10, 10–20, … from the marks of 20 students: 12, 25, 7, 34, 18, 22, 9, 41, 15, 28, 31, 5, 19, 26, 38, 14, 22, 11, 35, 27.

16. Question 154 marks

    What are the problems in constructing index numbers? Explain any four.

17. Question 166 marks

    Calculate the arithmetic mean by the direct method and the median of the following:

    | Marks | 0–10 | 10–20 | 20–30 | 30–40 | 40–50 | |---|---|---|---|---|---| | Students | 3 | 7 | 15 | 10 | 5 |

18. OR

    Question 166 marks

    Calculate Spearman's rank correlation coefficient: marks in English 56, 75, 45, 71, 61 and in Hindi 66, 70, 40, 60, 65.

19. Question 176 marks

    Calculate Karl Pearson's coefficient of correlation between X: 10, 12, 14, 16, 18 and Y: 40, 38, 34, 30, 28. Interpret the result.

Section B · Introductory Microeconomics

1. Question 181 mark

   Opportunity cost is the

   1. A.money cost of a good
   2. B.value of the next best alternative forgone
   3. C.total cost
   4. D.fixed cost
2. Question 191 mark

   A rightward shift of the PPC indicates

   1. A.growth of resources or technology
   2. B.unemployment
   3. C.inefficiency
   4. D.decrease in resources
3. Question 201 mark

   An indifference curve is

   1. A.upward sloping
   2. B.downward sloping and convex to the origin
   3. C.a straight vertical line
   4. D.concave to the origin
4. Question 211 mark

   Tea and coffee are

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

   If quantity demanded does not change when price changes, demand is

   1. A.perfectly elastic
   2. B.perfectly inelastic
   3. C.unitary elastic
   4. D.elastic
6. Question 231 mark

   In the long run, all factors of production are

   1. A.fixed
   2. B.variable
   3. C.partly fixed
   4. D.free
7. Question 241 mark

   When MC is less than AC, AC is

   1. A.rising
   2. B.falling
   3. C.constant
   4. D.zero
8. Question 251 mark

   Total revenue equals

   1. A.price × quantity
   2. B.cost × quantity
   3. C.profit + cost only
   4. D.AR/Q
9. Question 261 mark

   The supply curve of a firm under perfect competition is the part of its MC curve

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

    If supply increases with demand constant, equilibrium price

    1. A.rises
    2. B.falls
    3. C.stays the same
    4. D.becomes zero
11. Question 283 marks

    Distinguish between positive economics and normative economics with examples.

12. Question 293 marks

    A consumer has ₹40 to spend on two goods priced ₹4 and ₹2. Write the budget equation and find the intercepts of the budget line.

13. Question 304 marks

    Explain the concept of consumer's equilibrium in the case of a single commodity using the utility approach.

14. OR

    Question 304 marks

    What is meant by price elasticity of demand? Explain any three factors affecting it.

15. Question 314 marks

    Explain the relationship between total product and marginal product (returns to a factor) with a schedule.

16. Question 324 marks

    Explain the effect of a simultaneous increase in demand and supply on the equilibrium price and quantity.

17. Question 336 marks

    Explain the conditions of producer's equilibrium under perfect competition using the MR–MC approach, with a diagram. What happens if price falls below minimum AVC?

18. OR

    Question 336 marks

    What is a firm's supply curve? Explain three factors that shift the supply curve to the right.

19. Question 346 marks

    Explain with diagrams the effects of (a) a price ceiling and (b) a price floor imposed by the government.