2015
ECONOMICS
Full Marks: 100
Time: 3 hours.
The figures in the margin indicate full marks for the questions
PART A: STATISTICS FOR ECONOMICS
1. Answer the following questions:
a) Who is known as the father of economics? 1
Ans: Adam smith is called father of economics.
b) Quartiles divide a series into ____ equal parts. (Fill in the blank choosing the correct one from the bracket: (2, 3, 4, 5) 1
Ans: 4 Equal Parts
c) Define mode. 1
Ans: Mode: Mode is that value a dataset, which is repeated most often in the database. In other words, mode is the value, which is predominant in the series or is at the position of greatest density.
d) What is the range of correlation coefficient? 1
Ans: -1 to + 1
e) Arithmetic mean cannot be determined in open-end class. – Why? 1
Ans: Open end class-intervals, are those which do not have both the lower and upper limits. For example 'less than 10', or 'more than 100' are open end class-intervals. In such cases mean cannot be found out unless we assume the missing class limit. The class limits would have to be assumed on the basis of the class-intervals where both the limits are given.
f) What is meant by statistical project? 1
Ans: Statistical Project: A Statistical project can be defined as a well thought out plan of action made to achieve specific objective.
2. Give two characteristics of statistics. 2
Ans: Characteristics of Statistics: (i) Statistics are aggregates of facts. (ii) Statistics must be numerically expressed.
Or
In what way is statistics helpful in economics?
Ans: Importance of Statistics in Economics:
Ø Statistics helps in making economic laws like law of demand and concept of elasticity.
Ø It helps in understanding and solving economic problem.
Ø It helps in studying market structure.
3. Explain the meaning of primary data clearly. 2
Ans: Primary Data: Data which are collected for the first time for a specific purpose are known as Primary data. For example: Population census, National income collected by government, Textile Bulletin (Monthly), Reserve bank of India Bulletin (Monthly) etc.
4. Mention any two advantages of diagrams in data presentation. 2
Ans: Uses of Diagrams:
(i) Information presented though diagrams and graphs can be understood easily just in a bird’s eye view.
(ii) Diagrams and graphs produce a greater lasting impression on the mind of the readers.
5. From the following numbers calculate median: 2
36, 32, 28, 22, 26, 20, 18
Ans: Arrange the data in ascending or descending order: 18, 20, 22, 26, 28, 32, 36
Median = 26 (middle value of the series)
6. What is the relationship between Mean, Median and Mode when a distribution is symmetrical and when it is asymmetrical? 2
Ans: 3Median = 2Mean + Mode
7. Name two methods of measuring correlation. 2
Ans: a) Karl Pearson’s Coefficient of correlation. b) Spearmen’s Rank Correlation.
8. What are the advantages of sampling method of data collection over the Census method? 4
Ans: (a) Census survey is more time consuming and costly as compared to sample survey. (b) Census survey is an old method and it less systematic than the sample survey.
AHSEC CLASS 11 CHAPTER-WISE NOTES
Part A: Introductory Micro Economics
Introduction to Micro Economics
Consumer Behaviour and Demand
Producer Behaviour and Supply
Forms of Market and Price Determination:
Simple Applications of Tools of Demand & Supply
Part B: Statistics for Economics
Collection, Organisation and Presentation of Data
Statistical Tools & Interpretation
9. The following observations represent data relating to marks obtained by 20 students in a class-test. From the data prepare a frequency distribution table and draw a histogram without using graph paper. 2+2=4
15 | 24 | 09 | 18 | 36 | 44 | 25 | 23 | 45 | 08 |
28 | 32 | 31 | 12 | 25 | 45 | 35 | 24 | 16 | 38 |
Or
Represent the following data with the help of frequency polygon:
Class-interval: | 0 – 20 | 20 – 40 | 40 – 60 | 60 – 80 | 80 – 100 |
Frequency: | 4 | 6 | 13 | 5 | 2 |
10. What is mean deviation? State two demerits of mean deviation. 2+2=4
Ans: M.D: For a given set of observation, MD is defined as the arithmetic mean of the absolute deviation of the observations from an appropriate measure of central tendency. The formula for computing MD is
MD= ∑│D│/ N
Demerits of MD:
(i) The greatest drawback of this method is that algebraic signs are ignored while taking the deviations of the items.
(ii) It is not capable of further algebraic treatments.
Or
The numbers of workers in four separate departments in a factory are 12, 10, 20 and 8. The daily wages for each worker of the four departments are Rs. 60.00, Rs. 80.00, Rs. 90.00 and Rs. 100.00 respectively. Find out mean wage.
Ans: Mean wages = (12*60+10*80+90*20+8*100)/(12+10+20+8) = 4120/50 = 82.40
11. State four uses of index number. 4
Ans: Uses of index number
1. Measurement of change in the price level or the value of money.
2. Index number helps to ascertain the living standards of people.
3. Price index numbers serve as a useful guide to the business community in planning.
4. Index of exports and imports provides useful information regarding foreign trade.
12. Write about the main steps needed for developing a project. 4
Ans: Steps for developing a project:
1. Objective: The required data has to be collected with a clear objective of the project.
2. Population: To develop a project, the target population should be determined.
3. Collection of data: Data regarding project report should be collected using primary or secondary data. Secondary data must be used with great care.
4. Organization and presentation of data: Report can be presented using statistical tables, graphs or diagrams.
5. Analysis of data: Statistical measures like measures of central tendency and dispersion can be used for analyzing the data.
6. Interpretation & Conclusion: Data collected and analyzed should be correctly interpreted.
7. Consumer Awareness: It means product awareness among the consumers.
Ans: Dispersion: Dispersion is the measure of variation of items. It measures the extent to which the items vary from central value. It is also known as average of the second order. It includes range, mean deviation, quartile deviation, and standard deviation.
Measure of dispersion may be broadly classified into two types:-
A) Absolute measures of dispersion: It is classified into
a) Range b) Mean Deviation c) Standard Deviation d) Quartile Deviation
B) Relative measures of dispersion: It is classified into
a) Coefficient of Range b) Coefficient of Mean Deviation c) Coefficient of Variation d) Coefficient of Quartile Deviation.
SD is best measure of Dispersion:
Ø It is based on each and every item of the data and it is rigidly defined.
Ø It is capable of further algebraic treatment. Combined SD of two or more groups can be calculated.
Ø It is less affected by fluctuations of sampling than most other measures of dispersion.
Ø SD is most prominently used in further statistical work.
Or
Find out the value of median and mean deviation from the following data:
Class Interval: | 20 – 30 | 30 – 40 | 40 – 50 | 50 – 60 | 60 – 70 |
Frequency: | 25 | 32 | 32 | 8 | 3 |
14. What are the measures of central tendency? Why arithmetic mean is considered as ideal measure? Which measure of central tendency is the most representative? 2+3+1=6
Ans: In the words of Croxton and Cowden, “An average value is a single value within the range of the data that is used to represent all the values in the series.” The value of average lies between the maximum and minimum values of the series. That is why it is also called measure of central tendency.
AM is best measure of central tendency because:
(i) It is simple to understand and easy to calculate.
(ii) It is affected by the value of every item in the series.
(iii) It is rigidly defined.
(iv) It is capable of further algebraic treatment.
(v) It is calculated value and not based on the position in the series.
The median is usually preferred to other measures of central tendency when your data set is skewed.
Or
Calculate correlation coefficient with the help of Karl Person’s method from the data given below:
X : | 6 | 2 | 10 | 4 | 8 |
Y : | 2 | 8 | 3 | 6 | 1 |
PART – B: INDIAN ECONOMIC DEVELOPMENT
1. Answer the following questions:
a) What is meant by Commercialisation of agriculture? 1
Ans: Commercialisation of agriculture is a phenomenon where agriculture is governed by commercial consideration i.e. certain specialised crops began to be grown not for consumption in village but for sale in national and even in international market.
b) Define occupational structure. 1
Ans: Occupational structure of an economy shows how many percentage of the total workforce are employed in different sectors viz., agriculture (primary) industry (secondary) and services (tertiary).
c) Name a non-institutional source of rural credit in India. 1
Ans: Money Lenders
d) In which year was the first industrial policy of India announced? 1
Ans: 1948
e) Name the body which formulates economic plans in India. 1
Ans: Planning Commission
f) Which sector of the economy contributes highest to GDP in China? 1
Ans: Service Sector
2. State two important causes for decay of Indian handicrafts during British rule. 2
Ans: Disappearance of Princely courts, Discrimination in tariff policy.
3. State two common goals (objectives) of planning in India. 2
Ans: a) Industrial Development b) Increase in employment
4. Why is the development of agriculture essential for the Indian Economy? Give two reasons. 2
Ans: a) Ans: Importance of agriculture is as follows:
a) Source of livelihood
b) Source of food grains
5. Point out two failures of economic reforms in India. 2
Ans: a) Per capita income is very low b) Less employment.
6. What are the two areas where Pakistan has performed better than India? 2
Ans: Pakistan is ahead of India in terms of reducing the number of people below poverty line and in providing better sanitation and drinking water.
7. What are the two types of poverty? 2
Ans: The two measures to determine the extent of poverty are: I. Relative poverty II. Absolute poverty
Absolute poverty refers to the total number of people living below poverty line.
Relative poverty refers to poverty of people in comparison to other people, regions or nations.
8. How is organic farming superior to conventional farming? 4
Ans: Advantages of Organic Farming over conventional farming
1. It substitutes costlier Chemical fertilizers with cheaper organic inputs.
2. It generates income through export as the demand, for organically grown crops are on the raise.
3. It provides healthy food as organically grown food has more nutritional value.
4. It can provide more employment opportunities in India.
5. Organic food is a pesticide free and is produced in an environmentally sustainable way.
Or
Explain the concept – “agricultural diversification”.
Ans: Diversification of agriculture refers to the shift from the regional dominance of one crop to regional production of a number of crops to meet ever increasing demand for both cash crop and food production. It takes into account the economic returns from different value-added crops with complementary marketing opportunities. A diversified portfolio of products ensures that farmers don’t suffer complete ruin when the weather is unpredictable. It manages price risk, on the assumption that not all products will suffer low prices at the same time. Unfortunately, most farmers often do the opposite of diversification by planting products that have a high price in one year, only to see the price collapse in the next. Diversification in agriculture is key in achieving food security, improved human nutrition and increase in rural employment. Without diversification, farmers who are dependent on exports run a number of risks.
9. What are the four major sources of human capital formation in a country? 4
Ans: Sources of Human Capital Formation:
1) Expenditure on education: Proper utility of man power depends on the system of education. Spending on education by individuals is similar to spending on capital goods.
2) Expenditure on Health: Health is an important input for a development of a nation.
3) On the job training: productivity of physical capital is substantially increased with the improvement in human capital. Due to this reason many firms provide on the job training to their workers.
4) Expenditure on Information: Expenditure is incurred to acquire information relating to labour market and other market. This information is necessary to make decisions regarding investment in human capital.
Or
State four problems of human capital formation in India.
Ans: Reasons for poor Human Capital formations are:
1) Insufficient Resources: The resources allocated to the formation of human capital have been much less than the resources required for meeting the educational & health needs of the country.
2) Serious Inefficiencies: There are a lot of wastages of society’s resources as capabilities of educated people are either not made use of.
3) High Growth of population: The continuous rise in population has adversely affected the quality of human capital.
4) Lack of proper manpower planning: There is an imbalance between the demands for the supply of human resources of various categories, especially in case of highly skilled personnel. The absence of such balancing has resulted in the wastage of resources.
10. Explain briefly – seasonal unemployment and disguised unemployment. 2+2=4
Ans: Seasonal Unemployment-work in agriculture is seasonal, no employment opportunity for remaining months.
Disguised unemployment is a situation when the no. of workers engaged in a job is much more than actually required. If some of them are withdrawn from job, total production will not get affected.
11. Write the meaning of infrastructure. What are the two types of infrastructure? 2+2=4
Ans: It refers to such core elements of economic & social change which serve as a support system to production activity in the economy. It is mainly divided into two parts: Economic and Social infrastructure.
Economic infrastructure: It refers to all such elements of economic change like- power, transport, communication etc. which serve as a support system to the process of economic growth.
Social infrastructure: It refers to core elements of social change like- schools, colleges, hospitals, banking etc. which serve as a support system to the process of social development of a country.
Or
What are the necessary conditions for sustainable development?
Ans: The following strategies should be adhered to, for sustainable development:
1. Use of Non-conventional source of Energy like wind and solar says are cleaner and greener technologies, which can be effectively used to replace thermal and hydropower.
2. Use of CNG as fuel in public transport system has lowered air pollution and the air has become cleaner. The use of LPG and Gobar Gas is being promoted which reduces air pollution.
3. Establishment of Mini-Hydel plants in mountain regions to generate electricity through mini Hydel plants.
12. Make a comparison between Indian and China as regards with population size, density of population, birth rate and literacy rate. 4
Ans: India: Mixed economy, very high fertility rate, large population, high density of population, growth due to service sector.
China: One-child norm, low fertility rate, high degree of urbanization, mixed economy, large population, growth due to manufacturing sector.
Pakistan: Mixed economy, very high fertility rate, growth due to service sector.
13. Explain briefly the factors responsible for introduction of economic reforms in India. 6
Ans: The new economic policy started by the government since 1991 in order solve the Economic crisis and to accelerate the rate of economic growth is called Economic Reforms. It is also known as new economic policy which consists of Liberalization, Privatization and Globalization (LPG).
Need for economic reforms
1. Increase in fiscal deficit,
2. Adverse balance of payment,
3. Poor performances of PSU’s,
4 .Rise in price,
5.Fall in foreign exchange reserves
Or
What is privatization? Give three arguments for and two arguments against privatization in Indian context.
Ans: Privation: It refers to general process of involving the private sector in the ownership or management of state owned enterprises. It implies partial or full ownership and management of public sector enterprises by the private sector.
Merits of Privatization:
a) Improved Efficiency and minimised cost
b) Lack of Political Interference
c) Increased Competition
d) Government will raise revenue from the sale.
Disadvantages of Privatization
a) Privatization would create a private monopoly.
b) Government loses out on potential dividend
c) Problem of regulating private monopolies
d) Short-Term view of Firms
14. What is agricultural marketing? Briefly explain the defects of agricultural marketing in India. 1+5=6
Ans: Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Defects of Agricultural marketing system: The existing system of Agricultural marketing has number of defects the following are some of the defects due to which the marketing system is not properly organized:
a) Lack of storage facility for food grain and crops has damaged the products either by rats or insects or due to rain.
b) Distress Sale: Most Indian farmers are poor and they have no capacity to wait for better price. They sell the commodities at whatever the price available immediately.
c) Lack of transportation as a result farmer cannot reach nearly mandi’s to sell their produce at a fair price.
d) Long chain of middleman or intermediaries between the cultivator and the consumer will also reduce the profit of the producer.
e) There are also other defects like lack of institutional finance, lack of guiding etc.
Or
Briefly explain the causes responsible for poverty in India.
Ans: Causes of poverty
a) Underdevelopment of the Indian economy: The root cause of poverty is the under development of the Indian economy. The underdevelopment is caused by the relative backwardness of agriculture & industrial sector.
b) Population explosion: Rapid growth of population, particularly among the poor, is responsible for the problem of poverty in the country.
c) High level of un-employment: Poverty is caused by unemployment or low rates of wages.
d) Inequalities of income: An important cause of poverty in India is the existence of large inequalities in distribution of national income & concentration of economic power.
e) Social factors: Joint family system, laws of inheritance, strong belief in destiny & fate are some social factors that have presented individuals from taking initiative & risk.
f) Inflation: The steep & continuous rise in price, particularly of essential commodities has added to the miseries of the poor.
g) High illiteracy rate: Lower education result in lower income as there is a positive correlation between the two.
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