Prerna International School, Vihirgaon, Nagpur

XI COMMERCE CBSE 2021-22

SUBJECT: ECONOMICS (030)

TERM -1

Time Allowed: 90 minutes Maximum Marks: 40

General Instructions:

1. There are a total 60 questions in this paper out of which 50 questions are to be attempted.
2. This paper is divided into three Sections:
1. Section A – Contains 24 questions. Attempt any 20 questions.
2. Section B – Contains 24 questions. Attempt any 20 questions.
3. Section C – Contains 12 questions. Attempt any 10 questions.
3. All questions carry equal marks.
4. There is no negative marking.

Section A
1. Primary data is preferred over secondary data where:
a. Time available is short
b. Accuracy is important
c. Original Data is needed
d. Much accuracy is not required
2. Data collected from a newspaper is an example of:
a. Sample data
b. Secondary data
c. Either Sample data or Secondary data
d. Primary data
3. A good questionnaire should have:
a. Minimum questions
b. Concise
c. Clear
d. All the above
4. Tally marks determine.
a. Class width
b. Class boundary
c. Class limit
d. Class frequency
5. Which of the following is false regarding Importance of Statistics in Economics?
a. It helps in understanding and solving economic problems.
b. It helps in studying market structure.
c. It helps in finding mathematical relations between variables.
d. Statistics is used in administration and efficient functioning of government departments
 6. The second glass of mango juice gives lesser satisfaction to a thirsty boy. This is a clear case of:
a. Law of demand.
b. Law of diminishing returns.
c. Law of diminishing utility
d. Law of supply

7. The headings of the rows given in the first column of a table are called:
a. Stubs
b. Titles
c. Captions
d. Prefatory notes

8. While computing median in a continuous series, the following formula is used in

N
–CF
𝑀=𝑙 + 2 × 𝑖 the given formula, l1 represents
1 ƒ

a. Lower limit of the median class

b. Class interval of the median class
c. Upper limit of the median class
d. None of these
9. According to the Pie diagram given below if there are 10000 vehicles in a town. How many buses are
there in a town

Medium of Transport

20%

Private Vehicles
42%
Taxi
Buses
18%
Auto-Rickshaw

20%

a. 4200
b. 2000
c. 5000
d. 1800
10. Law of demand states the ------------ relationship between price and quantity demanded.
a. Inverse
b. Positive
c. Proportional
d. None of these
11. Which of the following statements is true?
a. Breadth of the bar is different
b. Bars may be drawn either vertically or horizontally
 c. Bars need not to be equidistant from each other
d. All of these
12. Ogives can be helpful in locating graphically the:
a. Mode
b. Mean
c. Median
d. None of the above
.
13. Decile divides the distribution into:
a. 50 equal parts
b. 20 equal parts
c. 30 equal parts
d. 10 equal parts
14. Which of the following value occurs most frequently in the series?
a. Median
b. Mean
c. Quartile
d. Mode
15. An increase in demand can result from:
a. A reduction in the price of substitutes
b. An increase in income
c. A decline in the market price
d. An increase in the price of complements
16. A frequency polygon is obtained by:
a. Constructing a frequency histogram
b. Constructing a cumulative frequency histogram
c. Linking mid-points from a frequency histogram
d. Using a line graph
17. The graph showing a’ Time Series ‘is called:
a. Historigram
b. Histogram
c. Frequency polygon
d. None of these
18. Total utility derived from consumption of commodity will begin to fall:

a. With every additional unit consumed

b. When Total utility curve becomes flat
c. When Marginal utility starts falling
d. When Marginal utility becomes negative
19. If the price of any complementary good rises, then:
a. Demand curve shifts to left
b. Demand curve shifts to right
c. Demand curve moves downward
d. Demand curve moves upward
20. Formula to determine Arithmetic Mean through short-cut method in case of individual series
¯ = 𝐴 + ∑d
a. 𝑋
N
¯ = ∑ ƒx
b. 𝑋
∑ƒ

.
 ¯ = 𝐴 + ∑x
c. 𝑋
N
¯ = ∑x
d. 𝑋
N
21 ------------------------measures the slope of indifference curve.

a. Budget line
b. Marginal rate of substitution
c. Marginal rate of transformation
d. None of these
22 ------------is called a positional measure.
a. Median
b. Mode
c. Mean
d. None of these
23. Which of the following statements is not true for tabulation?
a. Diagrammatic representation of data requires tabulation
b. Complicated data can be presented.
c. Statistical analysis of data requires tabulation
d. Facilitates comparison between rows and not columns.
24. For computing median, the values of different items given in the series should be arranged in
a. Either ascending or descending order
b. Ascending order
c. Descending order
d. None of these
Section B
25. Assertion (A): The problem of what to produce is related to the scarcity of resources.
Reason (R): Human wants are limited but the resources are scarce
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
26. Quartiles are the measures which divide the series into:
a. Four equal parts
b. Three equal parts
c. Five equal parts
d. Two equal parts
27. Assertion (A): Law of diminishing marginal utility states that as more units of a commodity are consumed.
Marginal utility derived from every additional unit must decline.
Reason (R): When MU is negative. TU will be decreasing.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
28. Statistics is used by ------------ --.
a. Businessmen
b. Economists
c. Government
d. All of the above
29. Assertion (A): The magnitude spread between the lower and upper-class limits is the class interval.
.
 Reason (R): Class interval is the width of the class which can be obtained by finding the difference
between the upper and lower limits of the class.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
30. If there is no change in the demand for commodity X, even after rise in its price, then its demand
is:
a. Perfectly elastic
b. Perfectly inelastic
c. Less elastic
d. Highly elastic
31. The most accurate mode of data presentation is:
a. Diagrammatic method
b. Textual presentation
c. Tabulation
d. None of these
32. Mode is found graphically by:
a. Frequency polygon
b. Ogive
c. Histogram
d. None of these
33. Assertion (A): If due to fall in the price of goods X, demand for goods Y rises, the two goods are
complementary.
Reason (R): There is an inverse relationship between the demand for the good and the price
of its complements. .
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
34. A curve which first moves upwards then downwards is ?
a. Demand curve
b. Indifference curve
c. Total utility curve
d. Marginal utility curve
35. The persons from whom the statistical information is collected.
a. Investigator
b. Respondants
c. Enumerators
d. None of these
36. The percentage of values in a set of values which are less than or more than the median value is:
a. 90%
b. 75%
c. 50%
d. 25%
37. Assertion (A): Mode of a series 2,4,2,5,6,2,3,8,9,2,5,10 is 2.
Reason (R): Mode of a set of observation is that value which occurs the greatest number of times i.e. with
highest frequency in a series.
a. Both A and R are true and R is the correct explanation of A.

.
 b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
38. Classification of data on the basis of location or region is called:
a. Chronological classification
b. Geographical classification
c. Spatial classification
d. Qualitative classification
39. Assertion (A): While calculating Median of the series, the terms need to be arranged in either
ascending order or descending order.

Reason (R): In Median the central term is to be found which divides the series into two
equal parts.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
40. Assertion (A): Budget line can shift to the right when the consumer is able to increase the consumption
of both goods.
Reason (R): When the level of income increases, the consumer will be able to buy more bundles of
goods, which were previously not possible.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
41. Assertion (A): Demand for salt is inelastic.
Reason (R): In case of elastic demand percentage of change in price of a commodity causes relatively
less than percentage change in quantity demanded.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
42. Error which occurs due to non-response from the respondents is an example of .
a. Non-sampling error
b. None of these
c. Sampling error and Non-sampling error
d. Sampling error
43. Statistics is the science of analyzing:
a. Qualitative data
b. Quantitative data
c. Any kind of data
d. Both (a) and (b)
44. In a family of 5 persons, there are three earning members having monthly incomes of
20,000rs,25,000rs and 30,000rs.The average monthly income of a member in the family is:
a. 25,000rs
b. 15,000rs
c. 20,000rs
d. 30,000rs

.
45. Average value of the upper and lower limits
a. Class
b. Mid-value
c. Class interval
d. Class limits
46. Assertion (A): Rahul bought two kg of mangoes as it was cheaper. This is an example of normative
economics.
Reason (R): Normative economics examines real economic events from moral and ethical angles and
judges whether certain economic events are desirable or not.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
47. In economics, scarcity refers to a situation when :
a. Demand for goods exceeds its supply
b. Supply of goods exceeds its demand
c. Supply of goods is equal to its demand
d. Both (a) and (b)
48. If a household spends 70% of his income on food ,then degree measure of an angle in the pie
diagram will be:
a. 200 degree
b. 210 degree
c. 70 degree
d. 252 degree
Section C

Question No. 49 to 54 are based on the given text. Read the text carefully and answer the
questions:
Our case studies show that economically successful cities can be found in all world regions and many
different kinds of countries-whether they are highly centralized order centralized: whether the income
level is high ,low or in the middle, whether the city is perpetually at peace or still recovering from
natural or manmade disasters. Successful cities can be landlocked or maritime, endowed or not with
amenities and natural resources, culturally diverse or hom∘ogeneous and administratively consolidated
or fragmented. They can be highly industrialized, postindustrial service economies or post-agrarian
societies just beginning to urbanize. Successful cities can also be examples of highly inclusive growth or
studies in contrasts between the haves and have-nots. In other words, they reflect our contemporary
planet of city dwellers, in all its complexity and contradictions. Every economy in the world faces the
economic problem of unlimited wants and limited resources. This economic problem gives rise to
people making choices about how they would like to use scarce resources. This economic problem gives
rise to the central problems of an economy.
49. The central problem of an economy is:
a. Assuring that production happens in the most effective way.
b. Ensuring a minimum income for each citizen.
c. Assigning limited resources in a way that unlimited desires and needs of the society are satisfied
d. Analyzing the demand with market economies.
50. The central problem of an economy in the above text arises because:
a. The multiplicity of wants and scarcity of resources
b. Many goods are sold in the market
c. Government makes decisions
.
 d. Shortage of Individual
51. Statement 1: One cannot produce all goods as much as wish to produce.
Statement 2:Value of production in an economy is identical with the value of income..
a. Statement1 is incorrect and statement 2 is correct
b. Statement1 is correct and statement 2 is incorrect
c. Both the statements are correct
d. Both the statements are incorrect
52. The problem in the above para is related to the problem of:
a. how to produce
b. from whom to produce
c. what to produce
d. all of these
53. When does an economy succeed in producing resources efficiently based on the above case
study?.
a. When the total number of goods manufactured is high .
b. When goods and services are produced without resources being wasted.
c. When the resources employed are the best.
d. When the resources are employed for highly valued uses
54. Which option is a disadvantage for allocating resources that are utilizing a market system based on the
facts as given in the case study?
a. Profits will be less
b. Uneven distribution of income
c. Impossible to stop the wastage of scarce resources
d. Notable unemployment may take place

Question No. 55 to 60 are based on the given text. Read the text carefully and answer the
questions:
To help analyze cross-elasticities,
elasticities, it is useful to estimate mode substitution factors, such as the change
in automobile trips resulting from a change in transit trips. These factors vary depending on
circumstances. Other trips will shift from non
non-motorized
motorized modes, ridesharing (which consists of vehicle
trips that will be made anyway), or be induced travel (including chauffeured automobile travel, in
which a driver makes a special trip to carry a passenger). Conversely, when a disincentive, such as
parking fees or road tolls, causes automobile trips to decline, there is generally a 20 to 60 percent shift
to transit, depending on conditions. Price elasticities have many applications in transportation
planning. They can be used to predict the ridership and revenue effects of changes in transit fares; they
are used in modeling to predict how changes in transit service will affect vehicle traffic volumes and
pollution emissions; and they can help evaluate the impacts and benefits of mobility management
strategies such as new transit services, road tolls, and parking fees. Matas (2004) used aggregate
demand function to obtain demand elasticities to observe long
long-term
term impacts of introducing the travel-
travel
card scheme, to conclude that passengers are most sensitive to price and quality variables
55. Ed = in case of:
a. Luxuries
b. Necessities
c. Perfect competition
d. Normal goods
56. The demand for good rises by 20 percent as a result of fall in its price. Its price elasticity of demand is
(–) 0.8. The percentage fall in price is .
 a. 50%
b. 25%
c. 80%
d. 20%
57. It is useful to estimate mode substitution factors, such as the change in automobile trips
resulting from a change in transit trips. Price elasticity of demand in such case when substitutes
available is .
a. perfectly elastic
b. perfectly inelastic
c. elastic
d. inelastic
58. On a straight-line downward-sloping demand curve, the maximum elasticity of demand occurs-
a. at its horizontal intercept.
b. at its midpoint.
c. at its vertical intercept.
d. where it intersects the supply curve.
59. Demand is inelastic if-
a. the smaller angle between the vertical axis and the demand curve is less than 45 degrees.
b. large shifts of the supply curve lead to only small changes in price.
c. the good in question has close substitutes.
d. a leftward shift of the supply curve raises the total revenue.
60. Elasticity of demand from the below graph is .

a. elastic
b. inelastic
c. perfectly elastic
d. perfectly inelastic