2018
ECONOMICS
Full Marks : 100
Time : 3 hours
The figures in the margin indicate full marks for the questions
1. Answer the following as directed : 1x6=6
a) Who is known as the father of Economics?
Ans: Adam smith is called father of economics.
b) What is primary data?
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.
c) Mention any one advantage of diagram in data presentation.
Ans: (i) Information presented though diagrams and graphs can be understood easily just in a bird’s eye view.
e) What is range?
Ans: Range: Range is defined as the difference between the value of the smallest item and the value of the largest item included in the distribution. It is the simplest method of measuring dispersion. Symbolically, Range= Largest value (L) – Smallest Value (S)
f) What is a project?
Ans: A project can be defined as a well thought out plan of action made to achieve specific objective.
2. What two importance’s of the study of Statistics in Economics. 2
Ans: Importance of Statistics in Economics: Statistics helps in making economic laws like law of demand and concept of elasticity.
a) It helps in understanding and solving economic problem.
b) It helps in studying market structure.
c) It helps in finding mathematical relations between variables.
Or
Mention two characteristics of Statistics.
Ans: Characteristics of Statistics:
(i) Statistics are aggregates of facts.
(ii) Statistics must be numerically expressed.
3. Mention two sources of secondary data. 2
Ans: Sources of Secondary Data
(a) Official publication by the central and state governments, district Boards.
(b) Publication by research institutions, Universities etc.
(c) Economic Journals.
(d) Commercial Journals.
4. Find the mean from the following data : 2
Class interval | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 |
Frequency | 2 | 7 | 12 | 7 | 2 |
Ans: Follow our youtube channel for the solution
5. What is wholesale price index number? 2
Ans: It measures the relative change in the price of commodities traded in wholesale market. It indicates the change in the general price level of goods but does not include services.
6. Draw a perfectly positive correlation and a perfectly negative correlation with the help of scatter diagram. 1+1=2
Ans: Follow our youtube channel for the solution
7. Write two advantages of arithmetic mean.
Ans: Merits of A.M.:
(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.
8. What are the advantages of sampling method of data collection over the census method? 4
Ans: Merits of sampling over census:
(a) Time and labour are saved. Census survey is more time consuming and costly as compared to sample survey.
(b) It may also be collected from unpublished form.
(c) If secondary Data are available, they are much quicker to obtain than primary data.
(d) Sampling is system and modern method of data collection. 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. Represent the following data by a frequency distribution table : 4
17 | 26 | 11 | 20 | 38 | 46 | 27 | 25 | 47 | 10 |
30 | 34 | 33 | 14 | 27 | 47 | 37 | 26 | 18 | 40 |
Ans: Follow our youtube channel for solution
Or
Draw a frequency polygon from the following data : 4
Class interval | 0-20 | 20-40 | 40-60 | 60-80 | 80-100 |
Frequency | 3 | 5 | 12 | 4 | 1 |
Ans: Follow our youtube channel for solution
10. What is correlation? State the significance of the values of correlation coefficient 
are 1, -1 and 0. 1+3=4
are 1, -1 and 0. 1+3=4Ans: Definition: Correlation is the degree of the relationship between two or more variables. It does not explain the cause behind the relationship.
Significance of various values of correlation
i) Perfectly Positive Correlation: If increase (decrease) in the values of one variable result a similar corresponding increase (decrease) in the values of another variable then the variables are said to be positively correlated. For example heights and weights, income and expenditure etc. are positively correlated. In this case value of r will be +1.
ii) Negative Correlation: If increase (decrease) in the values of one variable result a similar corresponding decrease (increase) in the values of another variable then the variables are said to be negatively correlated. For example, demand and price of commodities. In this case value of r will be -1.
iii) Zero Correlation: Two variables are said to have Zero correlation between them if they tend to change with no connection to each other. For example one should expect zero correlation between the heights of the students and the marks obtained by them. In this case value of r will be 0.
Or
With the help of the following data, calculate index numbers for 2016 taking 2015 as the base year : 4
Commodity | Price in 2015 | Price in 2016 |
A B C D E | 100 155 110 190 95 | 140 210 155 285 160 |
Ans: Follow our youtube channel for solutions.
11. Find the median from the following data : 4
Marks | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 | 70-80 |
No. of Students | 2 | 18 | 30 | 45 | 35 | 20 | 6 | 4 |
Ans: Follow our youtube channel for solutions.
12. Mention the necessary steps in preparing a project. 4
Ans: Meaning of Project: A project can be defined as a well thought out plan of action made to achieve specific objective.
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.
13. What is dispersion? What are its measures? Why is standard deviation called the best measure of dispersion? 1+2+3=6
Ans: - Dispersion: Dispersion is the measure of variation of items. It measures the extent to which the items vary from central value. Dispersion is also known as average of the second order.
Dispersion includes range, mean deviation, quartile deviation, and standard deviation. Mean, Median and Mode are the average of 1st order.
SD is regarded as best measure of dispersion because of the following reasons:
(i) It is based on each and every item of the data and it is rigidly defined.
(ii) It is capable of further algebraic treatment. Combined SD of two or more groups can be calculated.
(iii) It is less affected by fluctuations of sampling than most other measures of dispersion.
(iv) For comparing variability of two or more series, co-efficient of variation is considered as most appropriate and this is based on SD and Mean.
(v) SD is most prominently used in further statistical work.
Or
What is mode? Find out mode from the following data : 1+5=6
Class interval | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 | 70-80 |
Frequency | 16 | 20 | 25 | 15 | 13 | 11 |
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. Mode may or may not exist in a series, or if it exists, it may not be unique, or its position may be somewhat uncertain.
14. Calculate quartile deviation from the following data : 6
Roll No. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Marks | 30 | 38 | 50 | 22 | 40 | 25 | 60 |
Or
What is index number? Discuss the steps in constructing index number. 1+5=6
Ans: Ans: Index number is an indicator of changes in prices and quantities. It is a specialized average designed to measure the change in a group of related variables over a period of time. These index numbers are also known as barometers of economic activity. It offers a device of estimating the relative changes of a variable when measurement of actual changes is not possible. It is also an indicator of inflationary or deflationary tendencies.
Steps in construction of Index number
1. Purpose of index number.
2. Selection of base year.
3. Selection of goods and services.
4. Selection of price
5. Choice of average (simple or geometric average).
6. Selection of appropriate weights.
7. Selection of appropriate formula (Fisher’s or Laspeyre’s).
PART – B
(Indian Economic Development)
15. Answer the following : 
a) What was the main source of livelihood in India at the pre-Independence period?
Ans: Agriculture
b) When was the First Five – Year Plan commenced in India?
Ans: First five year plan: (1951 – 1956)
c) What do you mean by seasonal unemployment?
Ans: Seasonal Unemployment means employment is available in specific season for example woolen clothes business in winter and no employment opportunity for remaining months.
d) What is mixed economy?
Ans: Mixed economy is an economic system in which both public and private institutions exercise economic control. It is a mixture of both capitalism and socialism.
e) What is economic infrastructure?
Ans: 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.
f) Which sector of the economy contributes highest to GDP in China?
Ans: Service sector followed by industry
16. Mention any two features of Indian agriculture. 2
Ans: Indian is an agricultural country. Indian agriculture has its own characteristics which are as follows:
a) Subsistence farming,
b) Monsoon based agriculture,
c) Small size of land holding,
17. Point out two failures of economic reform in India. 2
Ans: 1. Neglect of agriculture, 2. Urban concentration of growth process, 3. Economic colonialism, 3. Cultural erosion
18. Mention any two sources of human capital. 2
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.
19. Mention any two non-institutional sources of rural credit in India. 2
Ans: Non-institution Sources: These are the traditional sources of agricultural credit in India. They include money lenders, relatives, traders, commission agents and land lords.
20. What are the two areas where Pakistan has performed better than India? 2
Ans: Sports and Urbanisation
21. What is globalization? Mention one merit of globalization. 1+1=2
Ans: Globalisation means ‘integrating’ the economy of a country with the world economy. This implies free flow of goods and services, capital, technology and labour across national boundaries.
The Merits of Globalization are as follows:
a) There is an International market for companies.
b) For consumers, there is a wider range of products to choose from.
22. Mention four poverty alleviation programmes taken by the Government of India. 4
Ans: Poverty alleviation programmers (PAP) in India:
a) Prime minister’s Rozgar Yojana (PMRY)
b) Swarna Jayanthi Shahri Rozgar Yojana (SJSRY)
c) Swarna Jayanthi Gram Swarozgar Yojana (SGSY)
d) Sampoorna Grameen Rozgar Yojana (SGRY)
e) National Rural Employment Guarantee Act 2005
f) Pradhan Mantri Gramodaya Yojana (PMGY)
Or
What do you mean by rural development? Mention two subjects related to rural development. 2+2=4
Ans: Rural Development is a continuous comprehensive socio-economic process, attempting to improve all aspects of rural life. Subjects relating to rural development are: Rural credit and agricultural marketing.
23. Write down any four defects of agricultural marketing in India. 4
Ans: Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
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:
1. Lack of storage facility for food grain and crops has damaged the products either by rats or insects or due to rain.
2. 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.
3. Lack of transportation as a result farmer cannot reach nearly mandi’s to sell their produce at a fair price.
4. Long chain of middleman or intermediaries between the cultivator and the consumer will also reduce the profit of the producer.
Or
How is organic farming superior to conventional farming? 4
Ans: Meaning of Organic Farming: Organic farming is the process of producing food naturally. This method avoids the use of synthetic chemical fertilizers. It is very eco-friendly and very essential for sustainable development. It has a zero impact on environment.
Advantages of Organic Farming (Why its is superior to traditional farming) 2015, 2017
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.
24. State two advantages and two disadvantages of liberalization. 2+2=4
Ans: Ans: Liberalization: It means to free the economy from the direct and physical control imposed by the government.
Advantages of Liberalization
a) Industrial licensing
b) Increase in the foreign investment
c) Increase in the foreign exchange reserve
d) Increase in the consumption and control over price
e) Check on corruption
Disadvantages of liberalization
a) Increase in unemployment
b) Loss of domestic units
c) Increase dependence on foreign nations
d) Unbalanced development
25. What is sustainable development? Mention three objectives of sustainable development. 1+3=4
Ans: It is the development, which will allow all future generations to have a potential average quality of life, which is at least as high, which is being enjoyed by the current generation.
Need for sustainable development:
1. To effectively utilise available natural resources.
2. To maintain proper balance of natural resources for future generation.
3. To reduce pollution.
Or
Mention four causes of environmental pollution in India.
Ans: Pollution is the Introduction of contaminates into an environment that causes instability, disorder, harm or discomfort to the ecosystem.
Causes of environmental pollution
a) Emission from industries causes air and water pollution.
b) Increased use of pesticides causes soil pollution.
c) Burning of fossil fuels from transportation and electricity production.
d) Noise and light pollution caused by household sources, social events, commercial and industrial activities and transportation.
26. Make a comparison between India and China as regards with population size, density of population, birthrate and literacy rate. 4
Ans: Comparison of India and China:
Basis | India | China |
Urbanisation | Rural areas are more than urban. | More proportion of urban population. |
Land Fertility rate | Moderate to high fertility | Low fertility |
Poverty line | People below poverty line is more as compared to china and Pakistan. | People below poverty line is very less as compared to India and China. |
Children policy | No specific children policy. | One children policy. |
Density of population | High density of population | Low density of population. |
Growth | Growth due to service sector. | Growth due to manufacturing sector. |
Economy | Mixed economy | Mixed economy |
Per capita income | Per capita income is higher than Pakistan | Per capital income is higher than India and Pakistan |
GDP | Higher than Pakistan | Higher than India and Pakistan |
Literacy | Literacy rate is 91.7% | Literacy rate is 99.6% |
Sports | India is performing well in recent years. | China is best in Asia |
Size of population | 135 crores | 145 crores |
27. Discuss the role of agriculture in economic development of India. 6
Ans: Importance of agriculture is as follows:
a) Source of livelihood of majority of population
b) Prime source of food grains for our country,
c) Source of industrial raw materials.
d) Source of national income.
e) Increase in production of agricultural products helps in reducing inflation.
f) It is the best mean to increase employment and reduce poverty.
Or
Discuss the common objectives of Five-Year Planning of India. 6
Ans: The goals or objectives of planning in India are as follows:
(i) Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a large stock of productive capital or an increase in the efficiency of productive capital.
(ii) Modernization: It is necessary to adopt new technology in order to increase production of goods & services. Adoption of new technology is called modernization.
(iii) Self-reliance: It refers to utilization of country’s resources in order to promote economic growth and modernization without using the resources imported from other countries. It means avoiding imports of those goods which could be produced in India itself.
(iv) Equity: It means equal distribution of income and wealth among the societies. It is important to ensure that the benefits of economic development should reach the poor sections of the society as well.
28. Discuss the various causes of unemployment in India. 6
Ans: Reasons for unemployment:
1. Increase in population.
2. Poverty and lack of proper education
3. Lack of infrastructure facilities such energy, transport etc.
4. Slow growth of industrialization.
5. Lack of demand of industrial products and consumer durables due to high inflation.
Or
Briefly explain the causes responsible for poverty in India. 6
Ans: Causes of poverty
1. 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.
2. Population explosion: Rapid growth of population, particularly among the poor, is responsible for the problem of poverty in the country.
3. High level of un-employment: Poverty is caused by unemployment or low rates of wages.
4. 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.
5. 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.
6. Inflation: The steep & continuous rise in price, particularly of essential commodities has added to the miseries of the poor.
7. High illiteracy rate: Lower education result in lower income as there is a positive correlation between the two.
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