ECONOMICS WORKSHEET BOOKLET

GRADE -11
(STATISTICS FOR ECONOMICS + INTRODUCTORY
SESSION (2020-21)
MICROECONOMICS)

Worksheet Booklet
2020-2021
Name: ____________
Grade:
Subject: Economics

1
 INDEX

ECONOMICS (030)
CLASS – XI (2020-21)
Theory: 80 Marks
Project: 20 Marks
UNITS MARKS
PART A STATISTICS FOR ECONOMICS
Introduction
13
Collection, Organisation and Presentation of Data
Statistical Tools and Interpretation 27
TOTAL FROM PART - A 40
PART B INTRODUCTORY MICROECONOMICS
Introduction 4
Consumer's Equilibrium and Demand 13
Producer Behaviour and Supply 13
Forms of Market and Price Determination under 10
perfect competition with simple applications
TOTAL FROM PART - B 40

2
 TOTAL THEORY (PART A + PART B) 80
PRACTICAL 20
TOTAL ( THEORY + PRACTICAL) 100

PART – A ( STATISTICS )

CHAPTER – 1 ( INTRODUCTION )
I. Answer the following (1 Mark)
1) Mention the two senses in which statistics is defined.
2) People are engaged in two types of activities in their day to day life. State
these activities.
3) State any two functions of statistics.
4) Following examples relate to which data?
a) Intelligence of individuals
b) Tastes and preferences of individuals
5) Why should statistical data be collected in a systematic manner?

II. Answer the following (3/4 Marks)

1) Discuss the role of Statistics in economic planning.
2) The subject matter of statistics could be studied through descriptive method
or through inferential method. Elaborate with the help of an example.
3) ‘An activity can be economic activity in one situation and non- economic in
another situation’. Do you agree? Give an example to justify your answer.
4) What are statistical methods? Name the various methods statistical
methods.
5) ‘Statistics are figures, but all figures are not statistics ’. Justify the statement.

III. Answer the following (6 Marks)

1) Enumerate the limitations of statistics in detail.
3
 2) Explain briefly the various characteristics of statistics in plural sense.
3) Is distrust of statistics justified? Explain your viewpoint with the suitable
example.

CHAPTER – 2 ( COLLECTION OF DATA)

I. Answer the following (1 Mark)

1) What kind of data is collected by NSSO.
2) What is statistical investigation?
3) Which data should be used by an investigator if there is a limited time
frame?
4) Name two agencies at the national level which collect, process and tabulate
the statistical data.
5) Ayaan wants to collect information from respondents residing in Gujarat,
Maharashtra and Madhya Pradesh. Name any two methods of data
collection which can be used by him effectively.

I. Answer the following (3/4 Marks)

1) Define the terms :- a) Enumerator ; b) Investigator ; c) Respondent
2) Primary data can take the form of secondary data. Do you agree?
3) “Secondary data is ready for reference, while primary data has to be
collected and processed”. Keeping in view the above statement,
differentiate between primary data and secondary data.
4) A statistical table has been prepared by Aryan which gives the birth
rate and death rate of different states. The data given in the table has
been collected from the published report of Census of India. Is the
data contained in the table primary or secondary? Substantiate your
answer by given reasons.
5) Write the advantage of pilot survey.

II. Answer the following (6 Marks)

4
 1) What is a questionnaire? State the qualities of a good questionnaire.
2) Briefly explain the published sources of secondary data.
3) Write a brief note of National Sample Survey Organisation and also
state its various objectives.
4) Differentiate between direct personal investigation and indirect oral
investigation.
CHAPTER 3 – (ORGANISATION AND CLASSIFICATION OF DATA)
I. Answer the following (1 mark)
1) What do you understand by organization of data?
2) What do you understand by ‘attribute’.
3) Which two values are used for calculating mid value?
4) Class mid-values of a frequency distribution of marks (in statistics) of students
of class XI are given as 46, 53 and 60. What will be the size of the class?
a) 5 b) 7 c) 10 d) 15
5) Give two objectives of an ideal classification of data.

II. Answer the following (3/4 Marks)

1) Explain open-ended frequency distribution in brief.
2) what are real class limits? How are they computed?
3) From the following data, prepare simple frequency distribution on the basis of
equal class interval.
Marks Less Less 5-15 15 and 20- 25 and 30
than than above 25 above above
5 10
7 20 38 55 20 5 1
No. of
students

4) Distinguish between inclusive series and exclusive series.

5) Give objectives of classification of data.

III. Answer the following (6 Marks)

5
1) What is cumulative frequency distribution? Explain the various cumulative
frequency distributions.

2) Convert the following inclusive series into exclusive series.

Class 1-5 6-10 11-15 16-20 21-25
interval
10 15 20 25 30
No. of
workers

3) The marks obtained by 25 students in a class are as follows

22 37 45 53 60

40 45 54 62
28
41 48 56 65
30
43 49 56 68
32
44 52 58 69
35

i) Arrange the above data in the form of a frequency distribution taking

class interval.
20-29 , 30-39 , 40-49 , 50-59 , 60-69
ii) Form the less than cumulative frequency distribution also.

6
4) From the following frequency distribution, prepare ‘less than’ and ‘ more than’
cumulative frequency distribution.
Wages (in 100-110 110-120 120-130 130-140 140-150
Rs)
4 12 20 7 5
No. of
workers

7
 CHAPTER – 4 ( PRESENTATION OF DATA)

I. Answer the following (1 Mark)

1) Write the names of main parts of a table.
2) Which type of diagram will be used to show two or more characteristics of
the data?
3) Which bar diagram is known as simple bar diagram?
4) Name the form of presentation to which the following example relates.
40% of India’s population lives below the poverty line and top 20%
population commands 70% of the national income.
II. Answer the following (3/4 Marks)
1) Briefly explain any four factors which should be kept in mind while
preparing a table.
2) Rice yield per hectare is given below. Show the data diagrammatically.
Year 1999- 2000- 2201- 2002- 2003- 2004- 2005-
2000 2001 2002 2003 2004 2005 2006

668 1013 1123 1235 1336 1552 1482

Yield per
hectare(in
kg)

3) The minimum temperature of Shimla in the last week of December is given

below

8
Date 25th Dec 26th Dec 27th Dec 28th Dec 29th Dec 30th Dec 31st Dec

3 degree 2 degree 4 degree -3 -4

Temperature -1 -2 degree degree
( celcius) degree degree

4) Differentiate between frequency polygon and frequency curve.

5) Construct a frequency polygon with histogram for the following data.

0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90

Class interval
4 6 7 14 16 14 8 6 5
Frequency

III. Answer the following ( 6 Marks)

1) Construct a pie diagram to represent the cost of construction of a house in
Delhi.
Items Labour Bricks Cement Steel Timber Supervision

25 15 20 15 10 15
Expenditure
(in %)

2) Draw the less than and more than ogive from the data given below
Weekly 0-20 20-40 40-60 60-80 80-100
wages (in ₹
10 20 40 20 10
No. of
workers

3) The following table shows the estimated sectoral real growth rates
(percentage change over the previous year) in GDP at factor cost.
(Represent the data as multiple time series graphs)

9
Year 1994-95 1995-96 1996-97 1997-98 1998-99 1999-
2000

5 -0.9 9-6 -1.9 7.2 0.8

Agriculture
9.2 11.8 6 5.9 4 6.9
Industry
4) The Indian Sugar Mills Association reported that, ‘ sugar production
during the first fortnight of December,2001 was about 3,87,000 tonnes,
as against 3,78,000 tonnes during the same fortnight last year (2000).
The off-take of sugar from factories during the first fortnight of
December,2001 was 2,83,000 tonnes for internal consumption and
41,000 tonnes for exports as against 1,54,000 tonnes for internal
consumption and nil for exports during the same fortnight last season’.
a) Present the data in tabular form.
b) Suppose you were to present these data I diagrammatic form which of
these diagrams would you use and why?
c) Present these data diagrammatically.

10
 CHAPTER 5: MEASURES OF CENTRAL TENDENCY
(TOPIC – ARITHMETIC MEAN)

I. Answer the following (1 Mark)

1) Mr. Ram has annual income of ₹10,00,000 while Mr. Raj has annual income
of ₹70,00,000. Their average income has been computed at ₹40,00,000 per
annum. Do you think average income is a good representation of their
actual annual income?
2) Name the two types of Arithmetic Mean.
3) “Calculation of arithmetic mean for an inclusive frequency distribution is
the same as in case of exclusive frequency distribution”. The given
statement is
a) True b) false c) partly true d) none
4) Give the formula of calculating arithmetic mean for ungrouped data.

II. Answer the following (3/4 Marks)

1) What are the three merits of computing arithmetic mean?
2) If mean distribution is ₹700 and sum of all observations is ₹ 6300, then find
the number of observations.

11
 3) The arithmetic mean of 1,3,5,6, X and 10 is 6, then find the value of X.
4) The average of five quantities is 6 and the average of three out of five
quantities is 8. What is the average of the remaining two?
5) The annual salaries of four men were ₹ 5000, ₹6000 ₹ 6500 and
₹30,000.
a) Find the arithmetic mean of their salaries
b) Does this average represent their salaries? Which property of arithmetic
mean is reflected here?

III. Answer the following (6 Marks)

1) Following are the marks obtained by 100 students in Economics. Calculate
the average marks by using assumed mean method (take 35 as assumed
mean)
Marks 0-10 10-20 20-30 30-40 40-50 50-60
No. of 5 10 25 30 20 10
students

2) Average daily wages of 50 workers of a factory was ₹ 200. Each worker is

given a raise of ₹ 20. What is the new average daily wages? Which
property of arithmetic mean does the above example point to?
3) Find out the missing Y of the following distribution, where arithmetic mean
is 11.37.
X 5 7 Y 11 13 16 20
Frequency 2 4 29 54 11 8 4

12
 4) Find out the arithmetic mean using the step deviation method.
Items More than 0 More than More than More than
10 20 30
Frequency 28 24 14 4

5) Following table gives the distribution of companies according to the size of

capital. Using step deviation method, find out the mean size of the capital
of a company.
Capital (₹ Less Less Less Less Less Less
in lakhs) than 5 than 10 than 15 than 20 than 25 than 30
No. of 20 27 29 38 48 53
companies

TOPIC – MEDIAN AND QUARTILES

I. Answer the following ( 1 Mark)

1) The median value of a series is 22. The last value of the series is changed
from 40 to 75. Will the value of median be affected?
2) Which quartile is equal to median?
3) Give the formula for calculating median in continuous frequency
distribution.
4) Which average distributes the series into 100 equal parts?
5) Median can be graphically computed

13
 a) By preparing ‘less than’ ogive
b) By preparing ‘more than’ ogive
c) By preparing ‘less than’ and ‘more than’ ogives
d) All of the above

II. Answer the following (3/4 Marks)

1) If the median of 5 , 9 , 11 , 3 , 4 , X and 8 is 6, then find the value of X.
2) The wage of 8 workers expressed in rupees are 42 , 45 , 49 , 38 , 56 , 54 , 55
and 47. Find the median wage.
3) ‘Median has a definite and a certain value’. Explain the three merits of
median with the help of given statement.
III. Answer the following ( 6 Marks)
1) Recast the following cumulative table into the form of an ordinary
frequency distribution and determine value of the median.
Number of days absent Number of students
Less than 5 29
Less than 10 224
Less than 15 465
Less than 20 582
Less than 25 634
Less than 30 644
Less than 35 650
Less than 40 653
Less than 45 655

14
2) The following table shows monthly wages of 10 workers. Calculate lower
and upper quartiles
120 150 170 180 181 187 190 200 192 210

3) Calculate median through a graph from the following table

Salary ( in 40 45 48 50 55 60
₹)
Number 5 7 6 10 5 8
of
labourers

4) Calculate the value of median, first quartile and third quartile from the
following data.
Marks Number of students
30-35 14
35-40 16
40-45 18
45-50 23
50-55 18
55-60 8
60-65 3

15
 5) Find the missing frequency of the group 20-30, if it is given that M= 28.
Class 0-10 10-20 20-30 30-40 40-50
interval
Frequency 5 8 f 16 6

Topic – MODE
I. Answer the following (1 Mark)
1) A shoe manufacturing company only manufactures shoes for adults.
Company wants to know the most popular size. Which measures of central
tendency will be the most appropriate?
2) When should we use inspection method to identify modal value of the
series?
3) Mode = 3 Median - _____
a) 2 Quartile b) 2 Mean c) 2 HM d) none
4) Extreme value has ________ effect on Mode.
a) High b) Low c) No d) none
5) Data represented through a histogram can help in computing graphically
the
a) Mean b) Mode c) Median d) none

16
II. Answer the following (3/4 Marks)
1) Differentiate between median and mode?
2) How mode is determined in a continuous series?
3) Calculate Mode, if Median is 20 and Mean is 18.
4) Compute mode from the following data
Score 0-10 10-20 20-30 30-40 40-50
Frequency 10 20 18 32 21

III. Answer the following (6 Marks)

1) Calculate the mode for the following series
Groups 10-19 20-29 30-39 40-49 50-59 60-69 70-79
Frequency 10 12 18 30 16 6 8

2) The following table shows the distribution of 105 families according to their
expenditure per week. Number of families corresponding to the
expenditure groups ₹ 10 -20 and ₹ 30 -40 are missing from the table. The
median and mode for the distribution are ₹ 25 and ₹ 24, respectively.
Calculate the missing frequencies.
Expenditure 0-10 10-20 20-30 30-40 40-50
(in ₹)
No. of 14 ? 27 ? 15
families

3) Locate the mode graphically.

17
 Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70
No. of 5 10 20 25 20 10 5
students

CHAPTER 6: MEASURES OF DISPERSION

TOPIC – RANGE, INTER-QUARTILE RANGE AND QUARTILE DEVIATION

I. Answer the following (1 Marks)

1) Give the formula for computing quartile deviation.
2) A statistician wants to calculate the range of the following distributions
Income Number of employees

10
Less than 2000
50
2000-10000
5
More than 10000
Can he do so? Why or why not?

3) Kunal was asked by his statistics teacher, Mrs Sharma to compute inter- quartile
range and quartile deviation of a set of data which contained positive values. As
per kunal’s calculations, IQR was 25 and quartile deviation was 30. Even without
checking the calculations, Mrs Sharma declared that the answers are wrong. Is
Mrs.Sharma correct in her assertion?
4) How is coefficient of Range calculated?

18
 5) Give the formula for computing quartile deviation?

II. Answer the following (3/4 Marks)

1) From the following data calculate range and coefficient of range.
Marks 10 20 30 40 50 60 70

8 12 7 30 10 5 2
No. of
students

2) Find out range and coefficient of range

Size 5-10 10-15 15-20 20-25 25-30

4 9 15 30 40
Frequency

3) Find the value of the smallest item of the data, if the coefficient of range is 0.6 and
the largest value is 60
4) Find out the quartile deviation for the given individual observations
10,20,30,40,50,60,70
5) Find the quartile deviation for the given data
X 12 18 22 35 46 65 79 80

18 12 14 16 8 10 32 13
Frequency

19
III. Answer the following (6 Marks)
1) Find the quartile deviation and coefficient of quartile deviation from the given
data
Class 0-10 10-20 20-30 30-40 40-50 50-60 60-70
interval
28 31 18 21 36 49 20
Frequency

2) From the following calculate coefficient of quartile deviation

10 20 30 40 50 60 70
Wages
less than
No. of 5 8 15 20 30 33 36
workers

TOPIC – MEAN DEVIATION

I. Answer the following (1 Mark)

1) Define mean deviation.
2) Mean deviation is a/an _____ measure of dispersion
a) Absolute b) relative c) exact d) none
20
 3) The mean deviation from median is computed as 14.5 and the median of
the series is 20. Find the coefficient of mean deviation from median.
4) Why is mean deviation not computed from mode?

II. Answer the following (3/4 Marks)

1) Why are ‘+’ and ‘-‘ sign ignored while taking deviations from mean or
median?
2) Find the mean deviation taking deviations from the mean for the given
individual observation
10 20 30 40 50 60 70

III. Answer the following (6 Marks)

1) Calculate mean deviation from the following data
X 12 18 25 35 47 55 62 75

8 12 15 23 16 18 31 12
Frequency

2) Find out the mean deviation from the arithmetic mean from the given data
Class 0-10 10-20 20-30 30-40 40-50
interval
2 4 6 4 2
Frequency

3) Find the mean deviation from median from the following data
21
 Class 17.5- 22.5- 27.5- 32.5- 37.5- 42.5- 47.5- 52.5-
interval 22.5 27.5 32.5 37.5 42.5 47.5 52.5 57.5

2 4 6 8 6 4 2 2
Frequency

TOPIC – STANDARD DEVIATION

I. Answer the following (1 Mark)

1) What is the algebraic sum of deviations from mean?
2) Why is standard deviation computed from mean?
3) While calculating standard deviation, the deviations, as compared from mean are
squared. Why?
4) Greater the value of standard deviation, _____ is the consistency of data
a) Lesser b) greater c) constant d) none

II. Answer the following (3/4 Marks)

1) State two merits and two demerits of standard deviation.
2) Give four differences between mean deviation and standard deviation.
3) Find out mean and standard deviation of the marks obtained by 10 students in
Statistics
S.No. 1 2 3 4 5 6 7 8 9 10

43 48 65 57 31 60 37 48 78 59
Marks

22
III. Answer the following (6 Marks)
1) Find out standard deviation
X 10 20 30 40 50 60

4 6 9 8 5 10
Frequency

2) Calculate standard deviation and coefficient of variation from the following data
Weight (in 0-20 20-40 40-60 60-80 80-100
kgs)
81 40 66 49 14
No. of
persons

23
 CHAPTER-7 MEASURES OF CORRELATION

I. Answer the following (1 Mark)

1) Name two methods of assessing correlation.
2) What is scatter diagram.
3) Mention the type of correlation, if variables change in reverse direction but in
equal proportion.
4) Can coefficient of correlation be 1.987? Why?
5) A scatter diagram is drawn by Avantika to assess the degree of correlation
between price and quantity demanded. On plotting the points, she observes
that all the points lie on the same downward sloping line and concludes that
both the variables exhibit perfect positive correlation. Is she correct? Give
reasons for your answer.
II. Answer the following (3/4 Marks)
1) Draw three hypothetical scatter diagrams showing the following value of r
a) r = -1 b) r = +1 c) r = 0
2) If the points in a scatter diagram tends to cluster in a straight line which
makes an angle of 30˚with the X-axis, what would you say about the strength
of association between X and Y?

24
 3) The following results are obtained regarding two series. Compute coefficient
of correlation, when sum of products of deviations of X and Y series from
their respective mean is 122
X SEREIS Y SERIES
Number of items 15 15
Arithmetic Mean 25 18
Standard Deviation 3.01 3.03

4) Compute the coefficient of correlation from the following data

X SERIES Y SERIES
MEAN 15 28
Sum of squares of Deviation 144 225
from Mean

Sum of products of deviation of X and Y series from their respective mean is

20. Number of pairs of observations is 10.

III. Answer the following (6 Marks)

1) Calculate coefficient of correlation between age group and rate of infant
mortality rate from the following data
Age group 0-20 20-40 40-60 60-80 80-100
Rate of 350 280 540 760 900
Mortality
(hint:- mid value should be used to calculate r)
2) The ranking of ten students in two subjects A and B are as below:
A 3 5 8 4 7 10 2 1 6 9
B 6 4 9 8 1 2 3 10 5 7
What is the coefficient of rank correlation.

25
3) Find out rank difference correlation between X and Y.
X 80 78 75 75 58 67 60 59
Y 12 13 14 14 14 16 15 17

4) From the following data, calculate coefficient of correlation between age and
playing habits.
Age group 20-30 30-40 40-50 50-60 60-70
Number of 25 60 40 20 20
students
Number of 10 30 12 2 1
regular
players

26
 CHAPTER-8 : INDEX NUMBER

I. Answer the following (1 Mark)

1) How is price relative calculated?
2) Mention the formula for the construction of weighted index numbers as given
by Professor Irving Fisher.
3) Assuming that base period to be 2011-2012, the index number of 2015-2016 is
computed as 300. What does it imply?
4) Define Index number.
5) What do you understand by wholesale Price Index?

II. Answer the following (3/4 Marks)

1) What methods are used for constructing Consumer Price Index number?
2) Mr. Ashok was getting ₹ 400 in the base year and ₹ 800 in the current
year. If Consumer Price Index is ₹ 350, then what extra amount is
required for maintaining the earlier standard of living?
3) Construct the index number by simple average of price relative method and by
simple aggregative method.

27
 Commodity A B C D E

16 40 35 5.25 2
Price in 2014
20 60 50 6.25 1.5
Price in 2015

III. Answer the following (6 Marks)

1) Construct index number of the price for the year price of 2016 from the
following data by
i) Laspeyre’s Method
ii) Paasche’s Method
iii) Fisher’s Method
Commodity 2008 2008 2019 2019

Price Quantity Price Quantity

10 30 12 35
A
9 10 11 15
B
8 15 10 20
C
6 20 7 25
D

2) A price index of two items of A and B is being estimated. If two items are
assigned weights of 64 and 36 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.
3) Construct the following indices by taking 2014 as the base year
i) Simple aggregative price index
ii) Index of average of price relative

28
 Items A B C D E

6 2 4 10 8
Price in 2014

10 2 6 12 12
Price in 2015
15 3 8 14 16
Price in 2016

PART -B MICROECONOMICS
UNIT : ECONOMICS , ECONOMY AND ITS CENTRAL PROBLEMS

I. Answer the following (1 Mark)

1) What is microeconomics?
2) What is macroeconomics?
3) Consider the given statement ‘During 2015-2016, the Indian economy
registered a growth rate of 6.2%’. the above statement is an example of
positive economics or normative economics?
4) Define the following terms:
a) Planned economy
b) Market economy
5) China is also an emerging economy like India, however it keeps on inventing
new and further advanced technologies. Do you agree that if they keep on
doing so, one day will come, when there will be no central problems in
China?
6) What is meant by economising the use of resources?

29
 7) Give the meaning of opportunity cost.
8) Define Transformation Curve?
9) If production possibility curve shifts to the right, should it be parallel to the
old one?
10) In which direction will the PPC shift in the situation of earthquake or
any other natural calamity?
11) ‘Opportunity cost is not an actual cost’. Do you agree?
12) Ms. Prerna decided to go for higher studies after her graduation
rather than opting for a job. What will be her opportunity cost of going for
studies.
13) What will be the shape of PPC when MRT is decreasing?
14) Can PPC be a straight line curve?
15) What is the formula to calculate MOC?

II. Answer the following (3/4 Marks)

1) To what extent you would agree with the statement that ‘scarce good
commands high price’?
2) Explain the problem of ‘What to produce’.
3) Explain the problem of ‘How to produce’.
4) Explain the problem of ‘For whom to produce’.
5) State the reason why economic problem arises.
6) In recent times, it has been observed that petrol and diesel price have
fallen several times due to changing market conditions. Do you think this
will solve the problem of ‘what to produce’ in developing countries like
India?

30
7) Do you think that, if India imports new and advanced technology from USA,
it would solve the central problem of ‘how to produce’?
8) Why is Production possibility curve concave. Explain?
9) An economy produces two goods, i.e. Barley and Jowar and the following
table summarizes its production possibilities. Calculate the MOC of Barley
at various combinations.
Barley 100 80 55 25 10 0

0 25 50 75 85 87
Jowar

10) Gulf countries have acquired more capital goods by selling oil to
various countries. What would be its impact on PPC?
11) Suppose in an economy, only two goods are being produces, i.e. guns
and wheat. While due to recession in the neighbor country, there is huge
migration of people in the home country. What will the impact of such a
movement on the transformation curve of home country (use diagram).
12) Explain the following points with the help of a diagram on PPC
a) Attainable points
b) Unattainable points

31
 CHAPTER -2 : CONSUMER’S EQUILIBRIUM AND DEMAND
TOPIC – CONCEPT OF UTILITY
I. Answer the following (1 Mark)
1) Define Marginal utility?
2) At what rate, TU increases when MU is diminishing?
3) Is the Law of diminishing marginal utility applicable in case of money?
4) What would be the impact on total utility. If Marginal utility curve lies
below X-axis.

II. Answer the following ( 3/4 Marks)

1) Explain the law of Diminishing Marginal utility with the help of TU schedule.
2) Explain the relationship between TU and MU with the help of diagram.
3) Calculate TU from the following MU schedule:
Units 0 1 2 3 4 5 6 7

___ 10 8 6 4 2 0 -2
MU

TOPIC – CONSUMER’S EQUILIBRIUM : UTILITY ANALYSIS

I. Answer the following (1 Marks)

32
 1) Explain the condition of consumer’s equilibrium in case of single
commodity.
2) Give the meaning of consumer equilibrium?
3) In case of single commodity, consumer is at equilibrium point, MU derived
from consumption of commodities is 12, find the price of that commodity?
a) ₹ 1 c) ₹ 2
b) ₹ 12 d) ₹ 1

II. Answer the following (3/4 marks)

1) A consumer consumes two goods. Explain consumer’s equilibrium with the
help of utility analysis.
2) A consumer consumes two goods X and Y and is in equilibrium. Show that
when the price of good X rises, the consumer buys less of good X. Use
utility analysis.
3) How a consumer will reach equilibrium if the ration of Marginal utility of X
to its price is greater than that of Y? use diagram to explain.
4) The cost of an ice-cream is ₹ 20. Akanksha who likes ice-cream, has already
consumed 4 ice- creams. Her MU is 4 of one rupee. Should she consume
more ice-cream or should she stop the consumption?

TOPIC – CONSUMER’S EQUILIBRIUM : INDIFFERENCE CURVE ANALYSIS

I. Answer the following (1 Mark)

1) Define budget set?
2) What is meant by monotonic preferences?
33
 3) Define indifference curve?
4) Define indifference map?
5) When a consumer is below the budget line, what does it mean?
6) Give reason behind a convex indifference curve.

II. Answer the following (3/4 marks)

1) Explain the meaning of Diminishing Marginal Rate of Substitution with the
help of a numerical example.
2) Can indifference curve be concave to the origin, if so then when?
3) Explain the impact of fall in price of good X on consumer’s equilibrium,
when a consumer consumes only two goods, i.e. X and Y, using Indifference
approach.
4) How does budget line change, if the price of good Y decreases by a rupee
but the price of good X and consumer income remain unchanged?

III. Answer the following (6 Marks)

1) Explain the three properties of the Indifference curve?
2) Explain the concept of MRS with the help of numerical example. Also,
explain its behavior along an Indifference curve.
3) Explain the conditions of consumer’s equilibrium with the help of
Indifference curve analysis.

TOPIC : DEMAND AND ELASTICITY OF DEMAND

I. Answer the following (1 Mark)

34
1) Define demand schedule.
2) Write an equation for a linear demand curve.
3) Why should consumer buy more of a commodity even when MU from
every successive unit tends to decrease?
4) ‘Law of demand is a price demand’. Comment.
5) Define change in quantity demanded.
6) Define change in demand.
7) If the demand for good Y increases as the price of another good X rises,
how are the two goods related?
8) What happens to the demand for substitute goods when the price of
commodity falls?
9) How does an increase in the income affect the demand curve for inferior
goods?
10) Identify the following as extension, contraction, increase or decrease
in demand
a)
Price Demand

20
10
15
12

b)
Price Demand

20
10
15
10

35
 c)
Price Demand

15
12
20
10

d)
Price Demand

20
10
30
10

II. Answer the following (3/4 Marks)

1) Distinguish between Increase in demand and Increase in Quantity
demanded.
2) How does change in price of complementary goods affect the demand of
the given good? Explain with the help of an example.
3) ‘ No good is normal or inferior ‘, it depends on consumer to consumer’. Do
you agree? Justify.

36
 4) Explain the determinants of demand affecting an individual demand.

III. Answer the following (6 Marks)

1) Explain the causes of leftward shift in demand curve.
2) Explain the inverse relationship between price and quantity demanded.
3) Explain with the help of a diagrams, the effect of the following changes on
the demand for a commodity:
a) A fall in the price of substitute goods
b) A fall in the income of its buyer

TOPIC – PRICE ELASTICITY OF DEMAND

I. Answer the following (1 Mark)

1) Give the meaning of inelastic demand.
2) Whether demand for luxurious goods is elastic or inelastic?
3) Why is perfectly elastic demand curve parallel to X- axis?
4) Which of the following commodities have inelastic demand?
Salt , a particular brand of lipstick , medicine , mobile phone and school
uniform.
5) Give the formula to measure Price Elasticity of Demand.

II. Answer the following (3/4 Marks)

1) Explain the factors affecting the price elasticity of demand.
2) Draw a demand curve with unitary price elasticity. Give explanation.

37
3) A consumer buys 10 units of a commodity at a price of ₹ 10 per unit. He
incurs an expenditure of ₹ 200 on buying 20 units. Calculate price elasticity
with the help of percentage method. Comment on the shape of demand
curve based on this information.
4) Quantity demanded of a commodity rises by 6 units, when its price falls by
₹ 1 per unit. Its price elasticity is (-)1. If the price before the change was ₹
20 per unit, calculate quantity demanded at this price.
5) On the basis of the following schedule, calculate price elasticity of demand
by percentage method.
Price per unit(₹) Total expenditure(₹)

180
10
162
9

6) A consumer buys 80 units of a good at a price of ₹ 5 per unit. Suppose price

elasticity of demand is (-)2. At what price will he buy 64 units.
7) The price elasticity of a commodity is (-) 1.5. when its price falls by ₹ 1 per
unit , its quantity demanded rises by 3 units. If the quantity demanded
before the price change was 30 units, what was the price at this demand?
calculate.
8) A 5% rise in price of a good leads to 5% fall in its demand. A consumer buys
100 units of a good when price is ₹ 5 per unit. At what price will he buy 120
units? Calculate.

38
 UNIT – PRODUCER’S BEHAVIOUR
TOPIC- PRODUCTION

I. Answer the following (1 Mark)

1) Can TP and MP become zero or negative?
2) What is the general shape of MP curve.
3) Justify the statement ‘ TP increases inly when MP increases’.
4) Why MP curve lies above AP curve and eventually cuts AP at its maximum
point?
5) Discuss in brief the concept of short run and long run.

II. Answer the following (3/4 Marks)

1) Explain the relationship between AP and MP.
2) Production of gift packs one week before Diwali falls in which period?
3) ‘Average product can never be zero while MP can be’. Comment.
4) Calculate TP and MP from the following table
Labour 1 2 3 4 5 6

39
 10 12 14 12 10 8
Average
Product

5) ‘Fixed cost of input is ignored in the study of the Law of increasing return’.
Do you agree?

III. Answer the following (6 Marks)

1) Explain the law of variable proportion with the help of TP and MP curves?
2) Discuss the causes of Diminishing return to a factor?

TOPIC – CONCEPT OF COST

I. Answer the following (1 Mark)

1) Do ATC and AVC curve intersects each other. Give reason.
2) Fixed cost exists in the long-run. Do you agree?
3) Why AFC is a rectangular hyperbola?
4) How is TVC derived from MC?
5) AC falls only when MC falls. Do you agree?
II. Answer the following (3 / 4 Marks)
1) State the relation between TC and MC?
2) Why AC curve is ‘U shaped’.
3) Draw AVC, ATC, and MC curves in a single diagram?
4) A producer borrows money and opens a shop. The shop premises is owned
by him. Identify implicit cost and explicit cost from this information.
Explain.
40
5) Complete the following table:
OUTPUT TVC AVC Mc

10 _______ _________
1
________ 8 6
2
27 _-- _______
3
_______ 10 13
4

6) Complete the following

OUTPUT TVC AVC MC

__ 12 ______
1
20 ______ _________
2
_____ 10 10
3
40 _______ _______
4

7) Complete the following

OUTPUT MC AVC AFC AC

_ _ _ 140
1
_ 45 _ _
2
45 _ 30 _
3
_ 48 22.5 _
4
_ 52 18 _
5

41
 8) Calculate TVC and MC from the following cost schedule of a firm, whose
TFC are ₹12
OUTPUT 1 2 3 4

20 26 31 38
TC

TOPIC – CONCEPT OF REVENUE

I. Answer the following ( 1 Mark)

1) Define marginal revenue.
2) Give the meaning of revenue in microeconomics.
3) Show that AR = price.
4) When MR is zero, TR is _______

II. Answer the following (3/4 Marks)

1) Explain the relationship between TR and MR.
2) What is firm’s demand curve?
3) Complete the following table
OUTPUT TR MR AR

_ _ 8
1
_ 4 _
2
15 _ _
3

42
 8 _ 2
4

4) Complete the following table

PRICE OUTPUT TR MR

1 6 _
_
2 _ 2
4
3 6 _

4 _ -2
1

5) Draw AR and MR curves in a single diagram of a frim who sell more units of
a good only by lowering the price of that good. Explain.
6) Draw a single diagram of AR and MR curves of a firm which can sell any
quantity of good at a given price. Explain.
7) Why the TR curve of a competitive firm faces a straight line passing through
origin?

TOPIC – PRODUCER’S EQUILIBRIUM

I. Answer the following (1Mark)

1) What is meant by producer’s equilibrium?
2) State two conditions of producer’s equilibrium.
3) What is shut down point?
4) Define normal profits.
5) ‘Producer’s equilibrium cannot be attained at falling MC’. Justify.

II. Answer the following (3 /4 Marks)

43
 1) From the following information about a firm, find the firm’s equilibrium
output in terms of MC and MR. Give reasons. Also find profit at this point.
OUTPUT TR TC

7 8
1
14 15
2
21 21
3
28 28
4
35 36
5

2) Explain producer’s equilibrium with the help of a diagram.

3) When does the producers earn supernormal profit.
4) When does the producer bear losses in the short-run?
5) Is a producer in equilibrium under the following situations?
1) When MR is greater than MC.
2) When MR is equal to MC.
6) Will a profit maximizing firm in a competitive market ever produce a positive
level of output in the range where the MC is falling? Give explanation.

TOPIC – SUPPLY AND ELASTICITY OF SUPPLY

I. Answer the following (1Mark)

1) What does the upward sloping supply curve indicate?
2) What effect does a cost saving technical process have on the supply curve?
3) What causes a downward movement along the supply curve.
4) Price elasticity od supply is 0.8. Is the supply elastic or inelastic and Why?

44
 5) When does supply become more elastic.

II. Answer the following (3/4 Marks)

1) A firm earns a revenue of ₹ 50 when the market price of a good is ₹ 10. The
market price increases to ₹ 15 and the firm now earns a revenue of ₹ 150.
What is the price elasticity of supply?
2) ‘A loss making-firm has inelastic supply’. Do you agree? If yes, why?
3) Explain the effect of rise in input price on supply of a commodity.
4) Explain any two causes that leads to shift in supply curve.
5) A new technique of production reduces the marginal cost of producing
stainless steel. How will this affect the supply curve of a commodity.
6) ‘Developing countries have constraints’. Do you agree.
7) A firm supplies 10 units of a good at a price of ₹5 per unit. Price elasticity of
supply is 1.25. What quantity will the firm supply at a price of ₹7 per unit.
8) Total revenue is 400 when the price of the commodity is 2 per unit. When
price rises to 3 per unit, the quantity supplied is 300 units. Calculate the price
elasticity of supply.

III. Answer the following (6 Marks)

1) Using diagram explain various degree of Price elasticity of supply.
2) Differentiate between decrease in supply and decrease in quantity supplied.

UNIT – FORMS OF MARKET

45
I. Answer the following (1 Mark)
1) Under which market form, a firm’s MR is always equal to price.
2) What is product differentiation?
3) What is the effect on price, when a monopoly firm tries to sell more.
4) What is price discrimination?
5) Why are patent rights granted?
6) How equilibrium price of a commodity is affected when demand increases less
than supply?
7) What is the relationship between the control price and equilibrium price.
8) For a non-viable industry, where does the supply curve lie relative to the demand
curve?
9) When will increase in demand imply an increase in price but no change in
quantity supplied?
10) What do you mean by price floor?

II. Answer the following (3/4 Marks)

1) Market for a good is in equilibrium. There is an increase in demand for this good.
Explain the chain of effects of this change?
2) What is meant by economic viability of an industry?
3) Increase in demand often causes a rise in price, but it is not always true. Explain.
4) A drastic drought results in a drastic fall in output of wheat. Analyse how will it
affect the market price of wheat?

46
 5) Suppose the demand for jeans increases. At the same time , because of an
increase in the price of cotton, the supply of jeans decreases. How will it affect
the price and quantity sold of jeans?
6) Explain the concept of Price ceiling?
7) It is generally observed that a firm under monopolistic competition, produces an
excess quantity. In your view, is it a wastage of scarce resources?
8) What is the elasticity of demand under perfect competition and monopolistic
competition?
9) Explain, how in the long – run, equilibrium with free entry and exit, firms under
perfect competition earns zero abnormal profits.
10) State three main features of Monopoly market.

III. Answer the following (6 Marks)

1) Make a difference between Perfect competition market, monopoly and
monopolistic market.
2) Economists say in consistent things, as price falls, demand rises, but as demand
rises, price rises. Defend or refute.
3) At a given price of a commodity, there is excess supply. Is this an equilibrium
price? If not, how will the equilibrium price be reached?
4) Consider the following demand and supply functions for a good:
Quantity demanded = 160 – 2p
Quantity Supplied = - 40 + 2p
1) Calculate the equilibrium price and quantity.
2) Find out a price at which there is excess demand.
3) Find out a price at which there is excess supply.
47
NOTES

48