2017
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 as directed: 1 x 6=6
a) What is meant by economic activity?
Ans: Economic activities are those that are concerned with production, exchange and distribution of goods and rendering of services to earn money.
b) Data which are collected by the investigator for the first time are known as primary data. [Write True or False]
Ans: True
c) Mention one source of secondary data.
Ans: Statistical abstract of the Indian Union, Monthly abstract of statistics, Monthly statistical digest, International Labour Bulletin (Monthly).
4) Find out the mode of the following: 1, 2, 3, 4, 5
Ans: Mode is ill defined
e) Largest item – Smallest item = ?
Ans: Range
f) What is meant by statistical project?
Ans: A project can be defined as a well thought out plan of action made to achieve specific objective.
2. In what way is Statistics helpful 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. 2
Ans: Characteristics of Statistics:
(i) Statistics are aggregates of facts.
(ii) Statistics must be numerically expressed.
3. Mention any two advantages of diagram in data presentation. 2
Ans: Diagrams are extremely useful due to the following reasons:
(i) Information presented though diagrams can be understood easily just in a bird’s eye view.
(ii) Diagrams produce a greater lasting impression on the mind of the readers.
(iv) They facilitate ready comparison of data over time and space.
4. Find the median from the following data: 10, 6, 15, 2, 3 2
Ans: Arranging the data in ascending order = 2, 3, 6, 10, 15
Now median = Size of (N+1)/2 th term
= Size of (5+1)2 th term
= 3rd term
Required Median = 6
5. Mention two characteristics of an ideal average. 2
Ans: The following are the important properties which a good average should satisfy
1. It should be easy to understand.
2. It should be simple to compute.
3. It should be based on all the items.
6. What do you mean by Lorenz curve? State one use of Lorenz curve. 1+1=2
Ans: Lorenz curve is a cumulative percentage curve in which the percentage of items is combined with the percentage of other things as wealth, profits, turnover, etc.
The most common use of this curve is in the study of the degree of inequality in the distribution of income and wealth between countries or between different periods of time.
7. What is mean deviation? Mention one merit of it. 1+1=2
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.
Mean Deviation gives us an idea of how spread out from the center the set of values is.
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
8. Distinguish between census method and sampling method of data collection. 4
Ans: Difference between Census and Sample survey: The following are the differences between Census and Sample method of investigation:
(a) Under Census method, each and every individual item is investigated whereas under sample survey only a part of universe is investigated.
(b) There is no chance of sampling error in census survey whereas sampling error cannot be avoided under sample survey.
(c) Census survey is more time consuming and costly as compared to sample survey.
(d) Census survey is an old method and it less systematic than the sample survey.
9. Represent the following data by a frequency distribution table: 4
| 16 | 25 | 10 | 19 | 37 | 45 | 26 | 24 | 46 | 09 |
| 29 | 33 | 32 | 13 | 26 | 46 | 36 | 25 | 17 | 39 |
Ans: Follow our YouTube channel for solution
Or
Draw a histogram from the following: 4
| Wages (in Rs.) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
| No. of Workers | 4 | 10 | 14 | 22 | 32 | 15 | 3 |
Ans: Follow our YouTube channel for solution
10. What is scatter diagram? Draw a perfectly positive correlation with the help of a scatter diagram. 2+2=4
Ans: Scatter Diagram Method: - It is a graphical representation of finding relationship between two or more variables. Independent variable are taken on the x-axis and dependent variable on the y-axis and plot the various values of x and y on the graph. If all values move upwards then there is positive correlation, if they move downwards then there is negative correlation.
Or
With the help of the following data, calculate index numbers for 2014 taking 2013 as the base year: 4
| Commodity | Price in 2013 (Rs.) | Price in 2014 (Rs.) |
| A B C D E | 90 145 100 180 85 | 130 200 145 275 150 |
Ans: Follow our YouTube channel for solution
11. Find out the mean from the following data: 4
| Marks: | 0-20 | 20-40 | 40-60 | 60-80 | 80-100 |
| No. of Students: | 5 | 15 | 30 | 12 | 8 |
Ans: Follow our YouTube channel for solution
12. Mention the necessary steps for developing 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 are the measures of central tendency? Why is arithmetic mean considered as ideal measure? Which measure of central tendency is the most representative? 2+3+1=6
Ans: Various measures of central tendency are: Mean, Median and Mode. Mean is further divided into AM, GM and HM. Median is further divided into Quartiles, Deciles and Percentiles.
AM is considered as an ideal measure because of the following reasons:
(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.
Mean is considered as the most representative measure of dispersion.
Or
Calculate the standard deviation from the following data: 6
| Class Interval: | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
| Frequency: | 5 | 8 | 16 | 8 | 3 |
Ans: Follow our YouTube channel for solution
14. Find the correlation coefficient with the help of Karl Pearson’s method from the data given below: 6
| X: | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Y: | 4 | 7 | 8 | 9 | 10 | 14 | 18 |
Ans: Follow our YouTube channel for solution
Or
Explain the meaning of index number. Mention any four uses of index number. 2+4=6
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.
Use 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.
PART – B
(Indian Economic Development)
15. Answer the following: 1x6=6
a) Mention one characteristic of Indian economy on the eve of independence.
Ans: Lack of adequate infrastructural facility
b) Name the body which formulates economic plans in India.
Ans: Planning Commission of India. Now renamed as Niti Aayog
c) What do you mean by disguised unemployment?
Ans: 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.
d) Define globalization.
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.
e) What is import substitution?
Ans: It is a policy that eliminates the importation of commodity and allows for the production in the domestic market.
f) In which year did China launch the Great Leap Forward (GLF) campaign?
Ans: 1958 and ended in 1961.
16. Mention any two benefits of Green Revolution. 2
Ans: Benefits of Green revolution
a) Introducing high yield varieties of seeds,
b) Making fertilisers and insecticide more widely available,
c) Manufacturing farm equipment,
17. State two common goals (objectives) of planning in India. 2
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.
18. State two important causes for decay of Indian handicrafts during the British rule. 2
Ans: a) Transformation of India to a mere exporter of raw materials. b) They captured India’s growing market for selling the finished products of British industries.
19. Give two arguments against privatization in the Indian context. 2
Ans: a) Privatization would create a private monopoly. b) Government loses out on potential dividend
20. Point out two indicators of human development of a country. 2
Ans: The indicators of human development are:
a) Life Expectancy.
b) Adult Literacy Rate.
c) Infant Mortality Rate.
21. What are the two types of poverty? 2
Ans: Types of poverty: Absolute and Relative poverty.
22. Write down any four defects of agricultural marketing in India. 4
Ans: 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.
5. There are also other defects like lack of institutional finance, lack of guiding etc.
Or
Mention any four non-institutional sources of rural credit in India. 4
Ans: Non-institution Sources of rural credit:
1. Money lenders
2. Relatives
3. Traders
4. Commission agents and
5. Land lords.
23. What is environment? Mention three causes of environmental pollution. 1+3=4
Ans: Environment is defined as the total planetary inheritance and the totality of all resources. Environment includes all the biotic and abiotic factors that influence each other.
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.
Or
What is sustainable development? Mention any three strategies for 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. 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.
24. Mention four causes of unemployment in India. 4
Ans: Unemployment: It means when a person is ready and willing to work at the prevailing rate of wage but does not get work. 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.
25. What do you mean by human capital? Mention three sources of human capital. 1+3=4
Ans: Human capital formation means the development of abilities and skills among the population of the country. Here, Human capital refers to the stock of skill, ability, expertise, education and knowledge involved in the people.
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.
Or
Write the meaning of infrastructure. What are the two types of infrastructure? 4
Ans: Infrastructure 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.
26. Mention four similarities of the economy of China, Pakistan and India. 4
Ans: Following are the similarities in the developmental strategies of India, Pakistan and China
(i) India, Pakistan and China have started towards their developmental path at the same time. India and Pakistan both have started their developmental programmes based on economic planning soon after their independence in 1947. While people’s Republic of China was established in 1949.
(ii) Both of them introduced economic reforms at the same time and also in similar time to strengthen their economies. . India announced its Five Year Plan in 1951-56, while Pakistan announced its Five Year Plan in 1956, which is called medium-term plan. China announced its First Five Year Plan in 1953.
(iii) Till the 1980s, all the three countries had similar growth rates and per capita incomes. Both the countries relied on the public sector for initiating the process of growth and development. Both of them have followed the path of mixed economic structure involving the participation of both the state as well as the private sector.
(iv) Economic reforms took place in all the three countries. Reforms started in India in 1991, in China 1978 and in Pakistan in 1988.
27. Explain the various weaknesses of economic reform in India. 6
Ans: Weaknesses of Economic reforms in India are listed below:
a) High Inflation: High rate of inflation is one the biggest problem of our economy. Lack of adequate production facility, higher rate of crude oil, traditional farming system are the main reasons for high inflation of our economy.
b) Low level of earning: Per capital income is very low in our country which is causing economic backwardness of our country.
c) Poor population in rural areas: Approx 70% population of our country resides in rural areas but economic reforms in our country fails to raise the standard of living of population residing in rural areas.
d) Poor performance of PSU’s: Economic reforms fails to improve the performance of PSU’s. Various PSU such as BSNL, ONGC fails to compete with private sector.
e) Adverse balance of payment: There is a huge gap between import and export in our country which cause adverse balance of payment situation. Economic reforms fails to manage adverse balance of payment.
f) Fall in foreign exchange reserve: Foreign exchange reserve in continuously reducing due to low export and high import. Economics policies of our government fails to boost export.
Or
Mention three merits and three demerits of globalization. 3+3=6
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.
c) Increase in flow of investments from developed countries to developing countries.
d) Greater and faster flow of information between countries.
e) Technological development has resulted in reverse brain drain in developing countries.
The Demerits of Globalization are as follows:
a) The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.
b) There is a greater threat of spread of communicable diseases.
c) There is a threat of monopoly from multinational corporations.
28. What is organic farming? Identify four benefits of organic farming. 2+4=6
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)
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
Discuss the poverty alleviation programmes taken by the Indian Government. 6
Ans: Poverty alleviation programmers (PAP) in India:
a) Prime minister’s Rozgar Yojana (PMRY) and Swarna Jayanthi Shahri Rozgar Yojana (SJSRY): Prime Minister’s Rozgar Yojana (PMRY) and Swarna Jayanti Shahari Rozgar Yojana (SJSRY). The first programme aims at creating self employment opportunities in rural areas and small towns. The Khadi and Village Industries Commission is implementing it. Under this programme, one can get financial assistance in the form of bank loans to set up small industries. The educated unemployed from low income families in rural and urban areas can get financial help to set up any kind of enterprise that generates employment under PMRY. SJSRY mainly aims at creating employment opportunities—both self-employment and wage employment—in urban areas.
b) Swarna Jayanthi Gram Swarozgar Yojana (SGSY): SGSY renamed as “Aajivika” main objective is to bring the assisted poor families above the poverty line and providing them income generating assets.
c) Sampoorna Grameen Rozgar Yojana (SGRY): This scheme was launched to achieve the objective of providing gainful employment for the rural people.
a) National Rural Employment Guarantee Act 2005: The main aim of this act is to guarantee the right to work.
b) Pradhan Mantri Gramodaya Yojana (PMGY): The main aim of this scheme was to provide good and well connected road in rural areas.
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