Set ~ 1
Series ARSP/01 Roll No. Q.P Code 15/1/1
Candidates must write the Q.P
Code on the title page of the
answer-book.
• Please check that this question paper contains 5 printed pages.
• Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
• Please check that this question paper contains 34 questions.
• Please write down the serial number of the question in the answer-book
before attempting it.
• 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.
ECONOMICS
Time allowed: 3 hours Maximum Marks: 80
General Instructions:
1. This question paper contains two sections:
Section A – Micro Economics
Section B – Statistics
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 be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be 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.
Section A
1. Assertion (A): 100, 95, 48, 86, 35, 65, 90, 54, 65, 98 are the scores of a class of 10 students in Statistics. This is
[1] an example of statistical data.
Reason (R): The statistical data are expressed in numbers and have to have some homogeneity.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the explanation of
A. correct explanation of A.
c) A is true but R is false. d) A is false but R is true.
2. P01 is the index for time[1]
a) 0 on 0 b) 0 on 1
c) 1 on 0 d) I on 1
3. The correlation between number of shoe a person uses and day temperature is: [1]
a) Negative b) Positive
c) Zero Correlation d) Perfectly positive
4. An enquiry into the budgets of the middle class families in a certain city gave the following information: What is
[1] the cost of living index during the year 2004 as compared with 1995?
Expenses Food Fuel Clothing Rent Misc.
Price (Rs.)2004 1500 250 750 300 400
Price (Rs.)1995 1400 200 500 200 250
a) 134.5 b) 131.48
c) 125.49 d) 132.5
5. Which is the symbol of the price of the current year? [1]
a) p2 b) p0
c) p3 d) p1
6. Index Number reveals the state of [1]
a) None b) Inflation
c) Deflation d) Both
7. Statistics facilitates [1]
a) organisation of data b) collection of data
c) disposal of data d) comparison of data
8. An orderly arrangement of data in columns and rows are called: [1]
a) Stubs b) Investigation
c) Tabulation d) Classification
9. If the prices of all commodities in a place have decreased 35% over the base period prices, then the index [1]
number of prices of that place is now
a) 35 b) 85
c) 135 d) 65
10. The data consist of scores on three different scales of Political attitudes. [1]
Scale-A Scale-B Scale-C
3 5 4
2 6 6
1 5 8
5 2 2
7 8 1
What is the Spearman rank correlation coefficient between the Scale-Aand the Scale-C?
a) -0.1 b) -1.0
c) 0 d) 1
11. A price index of two items of A and B is being estimated. If two items are assigned weights of 64 and 36 [3]
respectively, then the price index becomes 279. Similarly, if they are assigned weights of 50 each, then the price
index turns out to be 265. Determine the individual price index number of items A and B.
12. The average marks in statistics obtained by 30 student is 52. The average marks of top 6 students is 31. [3]
Calculate average marks of the remaining students.
OR
The average of five quantities is 6 and the average of three out of the five quantities is 8. What is the average of the
remaining two?
13. From the following frequency distribution, prepare ‘less than’ and ‘more than’ cumulative frequency [4]
distribution.
Define pie-diagram. Write the steps of making pie-diagram.
15. Explain the procedure of selecting a random sample of 3 students out of 10 in your class, by using random [4]
number tables.
16. Measure the height of your classmates. Ask them the height of their benchmate. Calculate the correlation [6]
coefficient of these two variables. Interpret the result.
17. Calculate Q1 and Q3 from the following table. [6]
Wages (in Rs.) Number of Workers
0-5 4
5-10 6
10-15 3
15-20 8
20-25 12
25-30 7
OR
The following table gives production yield in kg per hectare of wheat of 150 farms in a village. Calculate the mean
production yield.
Production yields 50-53 53-56 56-59 59-62 62-65 65-68 68-71 71-74 74-77
Number of Farms 3 8 14 30 36 28 16 10 5
Section B
18. The entire schedule showing various quantities offered for sale by all firms at different possible prices in the [1]
market of the commodity is called:
a) individual supply
b) market supply
c) quantity supplied
d) Price supplied
19. To which factor, the economic problem is basically related to: [1]
a) Firm Selection
b) b) Market selection
c) Choice
d) Consumer’s Selection
20. A firm earns normal profit before break even in the short run. The statement is [1]
a) May be
b) b) True
c) Can’t say
d) False.
st
21. The Total Revenue earned by selling 20 units is ₹ 700. Marginal Revenue earned by selling 21 unit is ₹ 70. The
value of Total Revenue earned by selling total 21 units will be ________. (Choose the correct alternative)
a) ₹ 720
b) b) ₹ 770
c) ₹ 721
d) ₹ 630
22. Changes in production quantity effect: [1]
a) Average cost
b) b) Marginal cost
c) Only Variable Cost
d) Only Fixed Cost
23. Assertion (A): More goods are purchased only when the price of the commodity falls. [1]
Reason (R): For every additional unit to be purchased the consumer is willing to pay less and less price.
a) Both A and R are true and R is the correct
b) b) Both A and R are true but R is not the explanation of A. correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
24. Perfectly competitive firm faces? [1]
a) Negative b) Zero
c) Perfectly inelastic demand curve d) Perfectly elastic demand curve
25. The relationships between AR and MR is when price falls is [1]
a) Both rise in sales
b) b) AR falls but MR rises
c) Both decline with increase in sales.
d) AR rises but MR falls
26. Average cost is derived by [1]
a) Dividing Total Cost by units of output b) Subtracting Total Cost by units of output
c) Adding Total Cost by units of output d) Multiplying Total Cost by units of output
27. If the demand curve of a firm is a horizontal straight line: [1]
a) all firms will sell equal amount of ab) firms can differentiate their product commodity
c) a firm can sell only a specified amount at
d) a firm can sell any amount at the existing the existing price
28. Why should there be huge unemployment in India when scarcity of resources is a universal fact? [3]
OR
State and discuss any two factors that will shift the Production Possibility Frontier (PPF) to the right.
29. Explain briefly the concept of equilibrium. [3]
30. The following news was printed in the Economic Times: [4]
Petrol and diesel prices were cut by ₹ 2 per litre each as international oil prices slumped to a five-year low.
Use a diagram and economic theory to analyse the impact on the demand for cars in India.
31. Using your judgement as an entrepreneur, would you agree with the following statement? [4]
Maximisation of profit implies equilibrium, but equilibrium does not always imply maximisation of profit.
OR
Giving reasons, Identify the equilibrium level of output and find profit at this output using Marginal Cost and
Marginal Revenue approach from the following table:
Output (units) 1 2 3 4 5
Total Revenue (Rs.) 10 20 30 40 50
Total Cost (Rs.) 12 22 30 40 52
32. A consumer consumes only two goods X and Y whose prices are ₹ 2 and ₹ 1 per unit respectively. If the [4]
consumer chooses a combination of the two goods with Marginal Utility of X being 4 and that of Y also being 4, is
the consumer in equilibrium? Give reasons. Explain what will a rational consumer do in this situation. Use Marginal
Utility Analysis.
33. Complete the following data. [6]
Units of Labour Average Product (A) (units) Marginal Product (Units)
1 8 -
2 10 -
3 - 10
4 9 -
5 - 4
6 7 -
34. Answer the following questions [6]
(a) When price of a commodity falls by Rs 2 per unit, its quantity demanded increases by 10 units. Its [3]
Price Elasticity of Demand is (-) 1. Calculate its quantity demanded at a price before change which
was Rs 10 per unit.
(b) If power tariff is lowered during off-peak hours, do you think the problem of load-shedding for [3]
household consumption can be solved to some extent? Use the concept of elasticity of demand.
