CBSE Class 11 – Economics Question Paper 2023    

SECTION – A

Question 1

Read the following statements carefully:

Statement 1: Quota sampling is a type of non-probability sampling method.

Statement 2: Under Quota sampling, the items of the universe are divided into various groups and then quota is fixed.

In the light of the given statements, choose the correct alternative from the following:

(a) Statement 1 is true and statement 2 is false (b) Statement 1 is false and statement 2 is true (c) Both statements 1 and 2 are true (d) Both statements 1 and 2 are false.  

Answer:

c) Both statements 1 and 2 are true.  

Explanation:

• Quota Sampling: It is indeed a non-probability sampling method. In this method, researchers divide the population into subgroups (quotas) based on certain characteristics (e.g., age, gender, occupation). Then, they set quotas for each subgroup and sample individuals until the quota for each group is filled.

Question 2

There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Assertion (A): Primary data are original.  

Reason (R): Primary data are collected from the source of origin.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) (c) Assertion (A) is true but Reason (R) is false (d) Assertion (A) is false but Reason (R) is true.  

Answer:

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Explanation:  

• Primary Data: This refers to data collected directly from the source for the first time. It is fresh and original, gathered specifically for the research purpose at hand.
• Data Source: Primary data is indeed collected from the source of origin, which could be individuals, organizations, or events.

Question 3

Arithmetic mean of a series is affected by the (lower/extreme) values of the series.

Answer:

Extreme

Explanation:

The arithmetic mean (average) is calculated by summing all the values in a dataset and then dividing by the number of values. Extreme values, whether very high or very low, can significantly influence the mean, pulling it towards them. For example, in a dataset of mostly small numbers, a single very large number can significantly increase the mean.

Question 4

Which method is used to calculate mode?

(a) Inspection (b) Grouping (c) (a) & (b) both (d) None of the above

Answer:

(c) (a) & (b) both

Explanation:

The mode is the value that appears most frequently in a dataset.

• Inspection: For smaller datasets, the mode can often be determined by simply looking at the data and identifying the most frequent value.
• Grouping: For larger datasets, grouping the data into intervals and then identifying the interval with the highest frequency can help in determining the mode.

Question 5

Define correlation.

Answer:

Correlation is a statistical measure that describes the relationship between two variables. It indicates the strength and direction of the linear association between the variables.  

• Positive Correlation: When one variable increases, the other variable also tends to increase.
• Negative Correlation: When one variable increases, the other variable tends to decrease.  
• No Correlation: There is no linear relationship between the variables.

Question 6

The correlation between the price of a car and the demand for a pen is:

(a) Positive (b) Negative (c) Zero (d) None

Answer:

(c) Zero

Explanation:

The price of a car and the demand for a pen are generally unrelated. The price of a car is unlikely to have a significant impact on the demand for pens, and vice versa. Therefore, the correlation between them is likely to be zero or very close to zero.

Question 7

“Graphic location of … is done through Cumulative Frequency Curve or Ogive.” This statement is valid for:

(a) Mean (b) Median (c) Mode (d) None of above

Answer:

(b) Median

Explanation:

The median is the middle value in a sorted dataset. The cumulative frequency curve (ogive) can be used to graphically locate the median. The median is the value corresponding to the point where the ogive crosses the 50% cumulative frequency mark.

OR

If the value of Median is 20 and the value of Mean is 24, calculate the value of Mode.

Answer:

Mode = 3 * Median – 2 * Mean

Mode = 3 * 20 – 2 * 24

Mode = 60 – 48

Mode = 12

This formula (Mode = 3 * Median – 2 * Mean) is based on the empirical relationship between mean, median, and mode for moderately skewed distributions.

Question 8

Read the following statements:

A. Diagrams simplify data. B. Diagrams are useful in making comparisons. C. Bar diagram is a two-dimensional diagram. D. Histogram is helpful in finding the median.

Which of the above are correct?

(a) I & II (b) I, II & III (c) I, II, III & IV (d) II, III & IV

Answer:

(b) I, II & III

Explanation:

• A. Diagrams simplify data: True. Diagrams visually represent data, making it easier to understand and interpret than raw numbers.
• B. Diagrams are useful in making comparisons: True. Diagrams allow for easy visual comparison of different data points, trends, and groups.
• C. Bar diagram is a two-dimensional diagram: True. Bar diagrams use bars of varying heights or lengths to represent data, creating a two-dimensional representation.
• D. Histogram is helpful in finding the median: False. While histograms provide information about the distribution of data, they are not specifically designed for finding the median. The median is better determined using methods like the cumulative frequency curve (ogive).

Question 9

Width of bar diagram need not to be equal. True/False

Answer:

False

Explanation:

In a bar diagram, the widths of the bars should be equal. This ensures that the visual comparison of the data is accurate and not skewed by varying bar widths.

Question 10

When we want to classify the data in the numerical term, which method of classification of data is used?

(a) Qualitative classification (b) Quantitative classification (c) Chronological classification (d) Geographical classification

Answer:

(b) Quantitative classification

Explanation:

• Quantitative classification is used when we want to classify data based on numerical values or quantities. This involves grouping data into categories or intervals based on their numerical measurements.

11. Read the following passage carefully:

The census of India provides the most complete and demographic record of population. The census is being regularly conducted every ten years since 1881. The census officials collect information on various aspects ¹ of population such as size, density, sex ratio, literacy, etc. The data collected is useful in determining tendencies in density of population, literacy ² rates, infant mortality rate, sex ratio, etc. Census data is interpreted and analyzed to understand many economic and social issues in India.

Answer the following questions based on the above passage:

A. Which method will be used to collect the data in the above passage?

B. Write any two uses of data collected under the census of India?

A. Which method will be used to collect the data in the above passage?

Answer:

The method used to collect data in the Indian Census is primary data collection.

• Explanation: Primary data is collected directly from the source. In the case of the census, data is collected directly from individuals and households through interviews, surveys, and observations by census officials.

B. Write any two uses of data collected under the census of India?

Answer:

Here are two uses of data collected under the census of India:

1. Policy Planning and Implementation: Census data provides valuable insights for policymakers to formulate and implement effective policies related to education, healthcare, infrastructure, and social development. For example, data on literacy rates helps in planning educational programs, and data on population density helps in planning urban development and infrastructure.

2. Resource Allocation: Census data helps in allocating resources efficiently. For instance, data on population distribution can guide the allocation of funds for healthcare facilities, schools, and other public services based on the needs of different regions.

Question 12

Discuss the main points of difference between primary and secondary data.

Answer:

Primary Data:

• Collected directly from the source.
• Gathered for the first time for a specific research purpose.
• Examples: Surveys, interviews, experiments, observations.
• Merits:
  • High accuracy and reliability if collected properly.
  • Specific to the research needs.
  • Provides firsthand information.
• Demerits:
  • Time-consuming and expensive to collect.
  • Requires expertise and resources.
  • Can be subject to biases.

Secondary Data:

• Collected by someone else for a different purpose.
• Obtained from existing sources like published reports, databases, and government records.
• Examples: Census data, market research reports, published articles.
• Merits:
  • Readily available and inexpensive.
  • Saves time and resources.
  • Can provide a broader perspective.
• Demerits:
  • May not be specific to the research needs.
  • Data quality may vary.
  • May not be up-to-date.

OR

Which method of data collection has got a mention in the above picture? Give merits and demerits of this method.

Answer:

Unfortunately, without the actual picture, it’s impossible to say which data collection method is mentioned. However, based on the context of the other questions, it’s likely that the picture might show something related to census data.

Merits of Census Data Collection:

• Comprehensive coverage: Captures data from a large and diverse population.
• Reliable and standardized: Follows a rigorous methodology and data collection process.
• Provides a snapshot of the population at a specific point in time.
• Used for various policy planning and decision-making purposes.

Demerits of Census Data Collection:

• Expensive and time-consuming to conduct.
• Potential for undercounting or overcounting certain segments of the population.
• Data privacy concerns and potential for misuse of personal information.

Question 13

What do you mean by ‘index number’? Discuss the main limitations of construction of index number.

Answer:

Index Number:

An index number is a statistical measure that shows the relative change in a variable or a group of variables over time. It is expressed as a percentage of a base value. Index numbers are widely used to track changes in prices (consumer price index), industrial production, and other economic indicators.

Limitations of Index Number Construction:

• Selection of Base Year: The choice of the base year can significantly impact the index number. An inappropriate base year can lead to misleading results.
• Selection of Items: The selection of items to be included in the index is crucial. An unrepresentative selection can bias the index.
• Weighting: Assigning appropriate weights to different items in the index is important. Incorrect weighting can distort the index.
• Formula Choice: The choice of the formula used to construct the index can affect the results.
• Data Quality: The accuracy of the index depends on the quality of the underlying data. Inaccurate or incomplete data can lead to unreliable index numbers.

Question 14

Calculate the mean of the given data.

Answer:

Unfortunately, the data for calculating the mean is not provided in the image. To calculate the mean, you would need the data values.

However, here is the general formula for calculating the mean:

Mean = (Sum of all data values) / (Number of data values)

OR

Write any the merits and demerits of Arithmetic Mean.

Answer:

Merits of Arithmetic Mean:

• Easy to calculate and understand.
• Takes all data values into account.
• Widely used in statistical analysis.

Demerits of Arithmetic Mean:

• Sensitive to extreme values (outliers).
• May not be representative of the data if the distribution is skewed.
• Cannot be calculated for open-ended class intervals.

Question 15

Make Histogram of the following data and also draw frequency polygon from it.

Answer:

Unfortunately, the data for creating the histogram and frequency polygon is not provided in the image.

To create a histogram:

1. Determine the class intervals (bins) for the data.
2. Count the number of data points that fall within each interval (frequency).
3. Draw rectangles for each interval, with the height of each rectangle representing the frequency.

To create a frequency polygon:

1. Plot the midpoints of each interval on the x-axis and the corresponding frequencies on the y-axis.
2. Connect the points with straight lines.

Question 16

Calculate Median from the following given data.

Answer:

Unfortunately, the data for calculating the median is not provided in the image.

To calculate the median:

1. Arrange the data in ascending order.
2. If the number of data points is odd, the median is the middle value.
3. If the number of data points is even, the median is the average of the two middle values.

Question 16

Calculate Median from the following given data:

To calculate the median, we first need to convert the given data into a cumulative frequency distribution:

Total number of workers (N) = 200

Median class: The class containing the (N/2)th observation. Here, (N/2) = 200/2 = 100. So, the median class is 200-300.

Formula for Median:

Median = L + [(N/2 - CF) / f] * h

where:

• L = Lower limit of the median class = 200
• N = Total number of observations = 200
• CF = Cumulative frequency of the class preceding the median class = 120
• f = Frequency of the median class = 50
• h = Class width = 100

Calculation:

Median = 200 + [(200/2 - 120) / 50] * 100
       = 200 + [(100 - 120) / 50] * 100
       = 200 + (-20/50) * 100
       = 200 - 40
       = 160

Therefore, the Median of the given data is 160.

Question 17

Calculate Karl Pearson’s coefficient of correlation from the data given below:

OR

Calculate Spearman’s Rank Difference coefficient of correlation from the data given below:

To calculate Karl Pearson’s coefficient of correlation:

1. Calculate the mean of X and Y.
2. Calculate the deviations of each X and Y value from their respective means.
3. Calculate the product of deviations for each pair of X and Y.
4. Calculate the sum of the product of deviations.
5. Calculate the standard deviations of X and Y.
6. Calculate the coefficient of correlation using the formula:

r = (Sum of product of deviations) / (n * standard deviation of X * standard deviation of Y)

To calculate Spearman’s Rank Difference coefficient of correlation:

1. Rank the X and Y values separately.
2. Calculate the difference in ranks for each pair of X and Y.
3. Square the rank differences.
4. Calculate the sum of the squared rank differences.
5. Calculate the coefficient of correlation using the formula:

r_s = 1 - [6 * (Sum of squared rank differences)] / [n * (n^2 - 1)]

 SECTION – B

Question 18:

A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are Rs.4 and Rs.5 respectively and Marginal Utility of Good X is 20 utils. What will be the Marginal Utility of Good Y if Marginal Utility of Money is 5? (Choose the correct alternative)

Solution:

Consumer Equilibrium Condition:

For a consumer to be in equilibrium while consuming two goods, the following condition must hold:

(Marginal Utility of Good X) / (Price of X) = (Marginal Utility of Good Y) / (Price of Y) 

Given Values:

• Price of X (Px) = Rs. 4
• Price of Y (Py) = Rs. 5
• Marginal Utility of X (MUx) = 20 utils
• Marginal Utility of Money (MUM) = 5

Let’s denote Marginal Utility of Y as MUy

Now, we can substitute the given values into the equilibrium condition:

(MUx) / (Px) = (MUy) / (Py)

20 / 4 = MUy / 5

Solving for MUy:

MUy = (20 / 4) * 5

MUy = 5 * 5

MUy = 25 utils

Therefore, the Marginal Utility of Good Y is 25 utils.

Correct Answer: (b) 25

Question 19:

“To increase the production of one good by 1 unit more and more units of the other good have to be sacrificed since the resources are limited and are not equally efficient in the production of both the goods”. In this case PPC will be:  

(a) Concave to the origin (b) Convex to the origin (c) Straight Line (d) None of the above.

Answer:

The correct answer is (a) Concave to the origin.

Explanation:

The statement describes the concept of increasing opportunity cost. This means that as we produce more of one good, the opportunity cost of producing an additional unit of that good increases. In other words, we have to sacrifice more and more units of the other good to produce each additional unit of the first good.  

PPC (Production Possibility Curve) and Concavity:

• A concave-to-the-origin PPC reflects increasing opportunity cost. This is because the slope of the PPC gets steeper as we move along the curve in the direction of producing more of one good. A steeper slope indicates a higher opportunity cost.

Key points to remember:

• If resources were equally efficient in producing both goods, the PPC would be a straight line.
• If the opportunity cost remained constant, the PPC would also be a straight line.

Question 20:

Read the following statements:

1. There is an inverse relationship between price of a normal good and its quantity demanded.
2. When income of the consumer rises, demand for inferior goods falls.
3. Giffen goods are the exceptions to the law of demand.

Which of the above are correct?

(a) I & II (b) I, II & III (c) I, III (d) II, III

Answer:

c) I, III

Explanation:

• Statement I: This statement is correct. It describes the Law of Demand, which states that there is an inverse relationship between the price of a normal good and the quantity demanded. As the price of a good increases, the quantity demanded decreases, and vice versa, ceteris paribus (all other factors remaining constant).

• Statement II: This statement is incorrect. When the income of a consumer rises, the demand for inferior goods typically increases. Inferior goods are those for which demand decreases as consumer income increases. Examples include generic brands of food or lower-quality clothing.

• Statement III: This statement is correct. Giffen goods are a special type of inferior good. They are exceptional cases where the law of demand is violated. As the price of a Giffen good increases, the demand for it also increases. This is because the income effect of the price increase outweighs the substitution effect. Giffen goods are typically low-quality goods that make up a significant portion of a poor consumer’s budget.

Therefore, the correct answer is (c) I, III.

OR

A demand curve parallel to Y-axis will reflect:

(a) Elastic demand (b) Perfectly elastic demand (c) Perfectly inelastic demand (d) Inelastic demand

Answer:

c) Perfectly inelastic demand

Explanation:

• A demand curve parallel to the Y-axis indicates that the quantity demanded remains constant regardless of the price.
• This means that consumers are willing to buy a fixed quantity of the good at any price.
• Such demand is called perfectly inelastic demand because the change in price has no effect on the quantity demanded.

Question 21

Read the following statements carefully:

Statement 1: When Marginal Revenue falls but remains positive, Total Revenue also falls.

Statement 2: Marginal Revenue can never be zero.

In the light of the given statements, choose the correct alternative from the following:

(a) Statement 1 is true and statement 2 is false (b) Statement 1 is false and statement 2 is true (c) Both statements 1 and 2 are true (d) Both statements 1 and 2 are false 

Answer:

a) Statement 1 is true and statement 2 is false

Explanation:  

Statement 1:

• True – When Marginal Revenue (MR) is positive but falling, it means that each additional unit sold adds less to the Total Revenue (TR) than the previous unit. This implies that TR is increasing at a decreasing rate. However, since MR is still positive, TR is still increasing.

Statement 2:

• False – Marginal Revenue can be zero. This occurs at the point where Total Revenue is at its maximum. Beyond this point, MR becomes negative.

Therefore, the correct answer is (a) Statement 1 is true and statement 2 is false.