Answer Key
Statistics For Economics
S. Question Marks
No.
1 “A person teaching her daughter for her board exams” is an economic activity. 1
2 Organizing a free blood donation camp 1
3 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct 1
explanation of Assertion (A)
4 1-c ; 2-d ; 3-a ; 4-b 1
5 Random sampling is one where the individual units from the population 3
(samples) are selected at random. Every individual has an equal chance of
being selected. Eg. Lottery Method: The names of each unit of the population
are written on paper and mixed, and then the items of the sample are drawn
one by one. Exit polls: wherein a random sample of voters who exit the polling
booths are asked whom they voted for. From the data of sample of voters, the
TV channels try to predict the result.
In a non-random sampling method, all the units of the population do not have
an equal chance of being selected. You may be conducting a study on the
household budget of people for which you have to select 10 out of 100
households in a locality. You have to decide which household to select and
which to reject. You may select the households conveniently situated or the
households known to you or your friend. In this case, you are using your
judgement (bias) in selecting 10 households. This way of selecting 10 out of
100 households is not a random but a non-random selection.
6 Explain any three functions of statistics. 3
Functions of statistics
1. statistics presents the data in a definite form.
2. Condensation of data.
3. finding relationship between different economic factors.
4. helps in prediction
5. helps in formulation of plans and policies. Any three explain
7 Unstructured questions are the open-ended questions. 4
Open ended (unstructured) questions give more freedom of expression to the
respondents, but they are difficult to interpret and to score since they are lot of
variations in the answer.
Eg “what is your view about Globalisation?”
structured questions are close ended questions which can either be a two-way
question or a multiple-choice question.
close ended structured questions are easy to use, score and codify for analysis
because the options or answers are given and the respondents have to choose
from
1
them only.
Eg Why did you sell your land?
a. To pay off the debts.
b. To finance children’s education.
c. To invest in another property.
d. To finance girl’s marriage.
8 Economics involves a study of people engaged in economic activities of all 3
kinds which include production consumption and distribution.
1. Production: manufacturing of products by producers for the market is
called production.
2. Consumption: use of products by consumers to satisfy their want is called
consumption.
3. Distribution: division of national income into factor Incomes is like
wages, profit, rent and interest is called distribution.
9 An ideal questionnaire must possess the following qualities. 4
A. the number of questions should be as minimum as possible. Long
questionnaire discourage people from completing them. Question should
be related to the purpose of enquiry
B. the question should be simple, clear and unambiguous to enable the
respondents to answer them quickly and correctly
Poor Q: What percentage of your income do you spend on clothing in
order to look presentable?
Good Q: What percentage of your income do you spend on clothing? C.
The questions should not be ambiguous.They should enable the
respondents to answer quickly, correctly and clearly. E.g:
Poor Q: Do you spend a lot of money on books in a month?
Good Q: (Tick mark the appropriate option) How much do you spend
on books in a month?
(i) Less than Rs 200 (ii) Rs 200–300 (iii) Rs 300–400 (iv) More than Rs
400
D. The question should not use double negatives such as “Wouldn’t you”
or “Don’t you” as they may lead to biased responses. Eg.:
Poor Q: Don’t you think smoking should be prohibited?
Good Q: Do you think smoking should be prohibited?
E. The question should not be a leading question, which gives a clue about
how the respondent should answer. E.g.:
Poor Q: How do you like the flavour of this high-quality tea?
Good Q: How do you like the flavour of this tea?
F. The question should not indicate alternatives to the answer. For
example: Poor Q: Would you like to do a job after college or be a
housewife? Good Q: What would you like to do after college?
Any four points.
2
Microeconomics
S. Question Marks
No.
10 Resources are not equally efficient for the production of two goods.
11 How to Produce?
12 Production of more units of good X and less units of good Y. 1
13 a. National Income: Macro eco because it studies determination of income 3
at the aggregate level.
b. Price determination of a commodity: micro eco, because it deals with
behaviour of an individual.
c. General Price level.: macro eco-deals with price as an aggregate
15 a. False 4
b. False
c. False
d. False
16 Opportunity cost of a commodity is the amount of other good given up. (Next
best alternative sacrificed) in order to produce that commodity. In other words,
opportunity cost of a given activity is defined as the value of next best activity
sacrifice in order to carry out a given activity. For example, a farmer is
cultivating rice on a piece of land and earning Rs 1500. if he would have
cultivated wheat then he could have earned Rs 1000 on the same piece of land.
Rs 1000 is the opportunity cost of producing rice as opportunity cost is defined
as a cost of next best alternative forgone.
