MOCK TEST

TIME: 3 Hour 1.5 hours. ECONOMICS M. M.: 80

General Instructions: Total no. of printed pages: 06
1. This question paper contains two parts:
Part A – Statistics for Economics (40 marks)
Part B – Introductory Micro Economics (40 marks).
2. Marks for questions are indicated against each question.
3. Question No. 1-10 and Question No. 18 – 27 are 1-mark questions and are to be answered in one
word/sentence.
4. Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be answered in 60 -
80 words each.
5. Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be answered in 80-
100 words each.
6. Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be answered in 100-
150 words each.
7. Answers should be brief and to the point and the above word limit be adhered to as far as possible.

PART A – Statistics for Economics

Q. 1 The index used to measure change in total money value is called: 1
a. Price index
b. Quantity index
c. Quality index
d. Value index

Q. 2 Define economics as given by Lionel Robbins. 1

Q. 3 For the mid value given: 25,34,43,53,61,70, the first class of the 1
distribution is:
a. 25-34
b. 24.5-34.5
c. 20-30
d. 20.5-29.5

Q. 4 The single value which represents the entire unit is called as: 1
a) Central tendency
b) Range
c) index number
d) Instagram

Q. 5 Write the formula of weighted mean. 1

Q. 6 Which of the following is equivalent to median? 1

a. Lower quartile Q1
b. The second quartile Q2
c. Upper Quartile Q3
d. All the above

Q. 7 Write two merits of mode. 1

Q. 8 If correlation between X and Y(rxy) is negative then relationship between 1

X and Y is of the type:
a. When Y decreases X decreases
b. When Y decreases X increases
 c. When Y increases X does not change
d. Both X and Y do not change

Q. 9 The square of standard deviation is known as the square of standard 1

deviation is known as:
a. Mean deviation
b. Standard deviation
c. Variance
d. Coefficient of variation

Q. 10 State any four qualities of an ideal questionnaire. .25x4=1

Q.11 Calculate mode using Inspection method from the following information: 3

Wages 20-30 30-40 40-50 50-60 60-70 70-80

No. of worker 10 10 14 8 6 2
Or
Find out the missing frequency If mean of the series is 29.

Class Interval 0-10 10-20 20-30 30-40 40-50 50-60

frequency 5 ? 12 18 5 3

Q. 12 Using the data given below find out the mode graphically by constructing 3
histogram :

Mid value 50 150 250 350 450

No. of students 5 10 25 15 5

Q. 13 Construct less than ogive : 4

Mid value 5-15 15-25 25-35 35-45 45-55 55-65

No. of students 4 6 10 5 3 2

Q. 14 From following information calculate correlation between X and Y using 4

short cut method:
X 6 8 10 12 14
Y 10 12 14 16 18

Q. 15 Explain the following highlighting their two merits, two demerits and two 4
suitability:
a. Indirect Oral Investigation
b. Systematic sampling

Or
Explain four characteristics of statistics, each with suitable example

Q. 16 i. What do you mean by caption and stub in a table? 6

ii. From the data given below to prepare a Multiple bar diagram
 Factory A Factory B
Year
(₹ in lakhs) (₹ in lakhs)
2014 80 75
2015 90 65
iii. 2016 60 120 From the data given
2017 170 100 below to prepare a
Histogram and frequency polygon.

Marks 0-10 10-20 20-30 30-40 40-50

No. of
7 8 2 6 2
candidates

Q. 17 Explain three uses and three Limitation of index number. Construct index (1.5 x 4 =6)
number for 2012 taking 2010 as base from the following data using:
i. Simple aggregative method
ii. Simple average of price relative method

commodities Price in (₹) Price in (₹)

2010 2012
A 100 100
B 120 150
C 60 90
D 180 160
E 140 190

Or
Explain how wholesale price index helpful in “Forecasting Demand and
Supply”. Construct index number for 1998 on the basis of 1990 from the
following data using:
i. Laspeyre’s Method
ii.Paasche’s Method
iii.Fisher’s Method

Commoditie 1990 1998

s Price in (₹) Quantity Price in (₹) Quantity
A 8 100 10 120
B 4 60 5 80
C 10 20 12 25
D 12 25 15 30
E 03 5 04 6
PART B – Micro Economics

Q. 18 What do you know about the “Knowledge among buyers and sellers” in .5+.5 = 1
the perfect competition market structure? Also, write its implication.

Q. 19 In a perfect competition, since the firm is a price taker, ___________curve 1

is a horizontal straight line parallel to X- axis:
a. Marginal cost
b. Total cost
 c. Total revenue
d. Marginal revenue

Q. 20 Which of the following is correct? 1

a. When MP is positive and falling TP Rises at a decreasing rate
b. When MP is rising TP rising at an increasing rate
c. When MP is negative TP falls
d. All of these

Q. 21 when the price falls with the rise in output, then: 1

a. MR curve is steeper than AR curve
b. AR curve is steeper than MR curve
c. MR and AR curve coincide in a horizontal straight line
d. MR curve lies above AR curve

Q. 22 Write the implication of “large number of buyer and seller” in the perfect 1
competition market structure?

Q. 23 A rational producer always aims to operate in ________of law of variable 1

proportion:
a. First Phase (increasing returns to factor)
b. Second Phase (diminishing returns to factor)
c. Third phase (negative return to factor)
d. Either first phase or second phase

Q. 24 The consumer is in equilibrium and is consuming commodity X only. The 1

marginal utility from last unit consumed of commodity 50 utils and
MUM=10 find the price of the commodity X.
a. ₹ 05
b. ₹ 10
c. ₹ 40
d. ₹ 04

Q. 25 Market for a good is in equilibrium. Due to government efforts the price 1

of factors of production reduced. Show through a diagram the likely effect
of this change on the equilibrium price and equilibrium quantity of the
good.

Q. 26 Give one point of difference between micro and macro economics 1

Q. 27 Under the Aatm nirbhar Bharat Yojan government is promoting the 1

herbal cultivation .10,00,000 hectares will be covered under herbal
cultivation in the next two years. This will lead to 5000 crore income
generation of farmers and the farmers previously under employed or
unemployed in the area will now have good source income how will this
affect the demand for black and white TV and colour TV.

Q. 28 What do you mean by economic problems? Explain three main reasons 3

for existence of economic problems.
Q. 29 Define demand. Explain any two factor that affect demand of a 3
commodity.
Or
Explain how the rise in the income of a consumer will influence the
demand of the given commodity if:
a. the given commodity is a normal good
b. the given commodity is an inferior good

Q. 30 i. Explain any two exceptions to the law of supply. 2+2=4

ii. The price elasticity of supply of a commodity is 2. When the price fall
from ₹ 10 per unit to ₹ 8 per unit its quantity supplied Falls by 500
units. Calculate the quantity supplied reduced price.

Q. 31 Explain the budget line and its properties with the help of a diagram. 4
What is the algebraic expression of budget line and budget set?
Or
Explain law of diminishing marginal utility with the help of schedule also
state its assumptions.

Q. 32 i. Price of a commodity-X falls from ₹5 per kg to rupees ₹4 per kg 4

and the demand of a consumer for it rises from 4 kg to 6 kg.
Express your opinion regarding the nature of elasticity of demand
of commodity-X.
ii. If there is no change in the quantity demanded of commodity-X,
what will be the nature of the price elasticity of demand?

Q. 34 i. What is meant by price ceiling? Explain using a suitable diagram 3+3 = 6

ii. Briefly discuss the effect on equilibrium price and quantity when
decrease in supply is more than the decrease in demand

Q. 33 i. Explain the behaviour of total revenue, average revenue and marginal

revenue curve with the help of diagram and schedule of a firm which (4+2=6)
can sell any units of a good at a given price.
ii. Complete the following table:
Output 1 2 3 4 5
AR (₹) 6 -- 4 -- --
MR (₹) -- 4 -- 0 --
TR (₹) 6 -- -- -- 10
 Or
i. Draw total cost, total variable cost and total fixed cost curve in a single
diagram and discuss the relationship between TC, TVC and TFC.
ii. Complete the following schedule:

Average
Averag Marginal Average
Output Variable
e cost cost cost
cost
1 60 20 -- --
2 -- -- 19 --
3 20 -- 18 --
4 -- 18 -- --
5 12 -- -- 6

(End of the question paper)