General Instructions:

1. This question paper contains two parts:

Part A - Statistics for Economics (25 marks), Part B - Micro Economics (25 marks)
2. Marks for questions are indicated against each question.
3. Question No. 1-12 and Question No. 17 – 28 ( 1 mark )
4. Question No 13 & 29 Assertion and reasoning Based Questions
5. Question No. 14, 15 & 30 Case study/ report based Questions
6. Question No. 16 & 31 Pictorial based Case study Questions.

Part A - Statistics for economics

Multiple Choice Questions:

1. We want to know how the national income or the total income arising from what
has been produced in the country ( called the Gross Domestic Product) is
distributed through wages (and salaries), profits and interest. This is the study
of ____________.
a) Consumption b) Production
c) Distribution d) Statistics
2. Stratified sample is preferred where:
a) Random sampling is not possible b) Population is perfectly homogeneous
c) Population is non- homogeneous d) Small samples are required.
3. The most accurate mode of data presentation is:
a) Diagrammatic method b) Tabulation
c) Textual presentation d) None of these
4. Class limits means
a) Sum of upper or lower limits
b) A range of values which incorporates a set of items
c) Extreme values of a class are limits
d) Difference between upper or lower limits
5. The graph obtained by joining the mid points of the tops of adjacent rectangles in
histogram is called _____________?
a) Frequency polgon b) Ogive c) Pie chart d) Histogram
6. "Stub" of a table is the
a) Right part of the table describing the columns
b) Left part of the table describing the columns
c) Right part of the table describing the rows
d) Left part of the table describing the rows

7. A series showing the sets of all distinct values individually with their frequencies is
 known as:
a) Grouped frequency distribution b) simple frequency distribution
c) Cumulative frequency distribution d) none of these
8. The number of students getting scholarship between ₹ 2500 and ₹ 3000 from the
following data is:
Scholarship 2000 2500 3000 3500
(more than ₹)
No of students 256 238 215 0
a) 36 b) 25 c) 23 d) 18
9. A comparison among the class frequencies is possible only in :
a) Frequency polygon b) Histogram
c) Ogive d) Either (a) or (b)
10 . Nationality of a student is
a) attribute b) A discrete variable
b) a continuous variable d) None of these
11. “ Inappropriate statistical unit “ is this item :
a) Sampling error b) Non sampling error
c) Sample estimate d) none of these
12. Match the Following: [2 ]
i. Identify the correct sequence of alternatives given in Column II by matching them
with respective items in column I.
Column I Column II
a)Continuous variable i) The values of variable skip from one integer
to another
b)Spatial classification ii) Variable can assume value in fraction
c) Discrete variable iii) Classification of Data according to
geographical location
d) Chronological iv) Classification of data according to time
classification period

a) (a)–(iv) ; (b) –(iii) ; (c) – (i); (d) – (ii)

b) (a)–(ii); (b) –(iii) ; (c) – (i); (d) – (iv)
c) (a)–(iii) ; (b) –(ii) ; (c) – (iv); (d) – (i)
d) (a)–(i) ; (b) –(iii) ; (c) – (ii); (d) – (iv)

ii) From the set of statements given in column I and Column II, Choose the correct
pair of statements:
 Column I Column II
a)Collection of Data i)Statistics in singular sense
b)Statistics as a method ii) First step in statistical
enquiry
c)Information given as iii) Statistics in Plural sense
numerical data
d)Statistical laws are not exact iv) Limitation of statistics
a)(a) –(i) b) (b) –(ii) c) (c) – (iii) d) (d) – (iv)

13. Read the following statements-Assertion(A) and Reason(R). Choose one of the
correct alternatives given below: [3 mark]
Alternatives
a) Both Assertion and Reason are true and Reason is the correct explanation
of Assertion.
b) Both Assertion and Reason are true and Reason is not the correct explanation
of Assertion .
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true
i) Assertion (A): Sampling error occurs when one makes an observation from the
sample taken from the population.
Reason (R): It is possible to reduce the magnitude of sampling error by taking a
small sample.(c)
ii) Assertion (A) : Classification is the process of arranging data into sequence and
groups.
Reason (R): Data are classified according to their common characteristics for
separating them into different but related parts.(a)
iii) Assertion (A) : A pilot survey is a tryout survey covering a wide range of
Universe of the study taken by the investigator.
Reason (R): This helps the investigator to assess the quality of the questionnaire
and the way respondents respond to the set of the question.(d)
14. Read the following Case Study and answer the questions on the basis of the
same:[3]
Given below is a diagram showing trade balance of India as a result of changes in
the exports and imports of the country. According to the reports, in the month of
June 2020,merchandise exports contracted 12.4% to $ 21.91 billion, while imports
dipped 47.6% to $ 21.11 billion from a year ago.
Answer the following questions based on the given information.
i. Which of the following diagrams represent trade balance (deficit/ surplus) of the
country?
a) Time series graph b) Simple bar diagram
c) Deviation bar diagram c) Histogram
ii. ______time_____ graph is used to depict changes in exports and imports in the
diagram
given above.
iii. A multiple bar diagram can be used to make comparison between two or more
variables like import and export values for different years (State True/ False)

15.Read the following case study and answer questions based on the same. [2]
A frequency distribution refers to data classified on the basis of some variable that
can be measured such as price, wages etc. The term variable refers to
characteristics that varies in amount or magnitude in a frequency distribution. A
variable may be discrete or continuous. A continuous variable is capable of
manifesting every conceivable fractional value whereas discrete variable can vary
only by finite jumps.
i. A frequency distribution series is also called:
a) Continuous series b) Discrete series
c) Both a and B d) Individual series
ii. Which of the following is a continuous variable?
a) Height b) Weight c)Temperature d) All of the above

16. From the Pictorial case study Answer the following questions: [4]
 i. The first official census was conducted in _______1881_______ .
ii. The data collected through Census of India is _____________ (Primary/
Secondary) data for government of India.
iii. Census of India collects Demographic details of the population ( True/ False)
iv. In the above picture ,the mode of Data collection is
_________personal___________.
Part B - Micro Economics
Multiple Choice Questions:
17.Which of the following is not micro economics
a)Savings b) Market demand
c)Price d) cotton cloth industry
18. Economising of resources means :
a) Use of resources on more profitable activities
b) Savings of resources for future use
c) Shifting of resources from one task to another
d)None of the above
19. An economy is operating on its production possibilities frontier for 2019. A year
later it is operating at a point beyond 2019’s production possibilities frontier, but
within 2020’s production possibilities frontier. From this information , It can be
concluded that between 2019 and 2020.
a) Both economic growth and an increase in unemployment occurred.
b) Both economic growth and a reduction in unemployment occurred.
c) Only a reduction in unemployment occurred.
d) Only economic growth occurred.
20. What is the other name for opportunity cost in economics ?
a)Marginal cost b)Total cost c)Variable cost d) Economic cost
21.The situation of consumer’s disequilibrium Mux/Px>MUy/ Py arise_________
a) due to increase in consumption of good X
b) due to decrease in the price of good Y
c) due to increase in the price of good X
d) due to increase in the price of good Y

22.Which of the following is not a subject matter of Macro economics?

 a) Employment level b) Aggregate Supply
c) National Income d) Determination of market price
23. Which of these statement is correct about Opportunity cost?
a) Opportunity cost is always higher than the given price
b) Opportunity cost is always less than the given price.
c) Opportunity cost is always calculated in money.
d) Opportunity cost can be less than , more than or equal to given price
24. A consumer is consuming two goods good X and Y and is in equilibrium. The
prices of X and Y are Rs 10 and Rs 20 respectively and the marginal utility of good
Y is 50 units . What will be marginal utility of good X?
a) 100 units b) 25 units c) 250 units d) 4 units
25. Which of the following can be referred to as "Point of Satiety?
a) Marginal Utility is negative b) Total Utility is rising
c) Marginal utility is zero d) Total Utility is falling
26. Consider the budget line of a consumer with income ₹ 400 and the goods under
consideration priced at ₹ 20 and ₹ 40 respectively. If the following three bundles
are said to be on the budget line. Find the missing values.
(i)( ____, 0) ii) (16 , ___ ) and (iii) ( ____ , 5 )
a) 20, 4, 10 b) 10, 3 , 10 c) 20, 2 , 10 d)12 , 2 , 20
27. If Total Utility for consuming 5 Units and 7 Units for a consumer are 24 Utils and
34 Utils respectively. calculate Marginal Utility for consumption of 6th unit.
a) 4Utils b) 8Utils c) 10Utils d) 5Utils
28. A consumer consumes only 2 goods . if price of one of the good falls, the
indifference curve__________
a) Can shift both leftward and rightward b) shift rightward
c) does not shift d) shifts leftward
29. Read the following statements-Assertion(A) and Reason(R). Choose one of the
correct alternatives given below: [5 mark]
Alternatives
a) Both Assertion and Reason are true and Reason is the correct explanation of
Assertion.
b) Both Assertion and Reason are true and Reason is not the correct explanation
of Assertion .
c) Assertion is true but Reason is false
d) Assertion is false but Reason is true

i. Assertion: Utility is directly linked with the usefulness of a commodity.

Reason: A commodity may not be useful, yet it may have utility for a
 particular person like cigarette(d)
ii. Assertion :Budget line can shift to the right when the consumer is able to
increase the consumption of both goods.
Reason: When the prices of both goods fall, the consumer cannot purchase
more goods with the same income level.(c)
iii. Assertion: The relative price and availability of labour and capital are the
determining factors while selecting the production technique.
Reason: Choice of technique needs to be adopted and used in the process of
production.(b)
iv. Assertion: Normative statements describe what ought to be.
Reason: These statements pass value judgments or the probable
consequences.(a)
v.Assertion : Opportunity cost is the cost of the next best alternative foregone.
Reason : The opportunity cost of building an additional airport terminal is the
public housing for low- income families that the same government funds could have
been used for.(a)
30. Read the following case study and answer on the basis of the same. [4]
The indifference map shows what a consumer would like to do and a rational
consumer would certainly like to get the largest possible bundle which gives him
maximum possible satisfaction. Thus, he would like to reach the highest possible
indifference curve. But how big a bundle he can actually
buy or which possible highest curve he can reach is decided by his given money
income and the market price of goods that he wants to consume. The budget line
shows combination of the two goods at their given market price and income of
the consumer. Budget line can be affected due to change in price of two goods
and income of the consumer.
i. Which of the following is the slope of budget line?
a) Marginal rate of substitution b) Marginal rate of technical substitution.
c) Market rate of exchange d) None of the above.
ii. Ordinal utility refers to the situation
a) When consumer expresses his preferences in quantitative terms.
b) When consumer expresses his order of preferences regarding combination
of two goods.

c) When consumer becomes neutral between different combinations of

two goods.
d) When consumer does not express his preferences.
 iii. If the price of good on X axis increases , given the price of Good on Y axis and
income of a consumer as constant, What will be the effect on budget line?
a) It will shift to right from x- axis b) It will shift to left from x-axis
c) It will shift to right from both the axis d) None of the above
iv. Attainable combinations of x and y are drawn on the assumption that Px
and Py are
a) Constant b) variable c) change in the same ratio d) equal to each other
31. From the Pictorial case study Answer the following questions: [4]

i) The consumer attains equilibrium at point E , The condition satisfied under

indifference curve theory is ______mrs=mre_______.
ii) "Higher Indifference curve represents higher level of satisfaction" as higher
indifference curve represents larger bundle of goods, which means more utility
because of ______monotonic preference_____.
iii) The slope of budget line is represented by ____price ratio_____ as it is
_____constant_______
throughout ,the budget line is a straight line .
iv) In this figure __________ point represents MRSxy < Px /Py, How will be the
reaction of a consumer at this point .
a) Consumer will buy more of X commodity and less of Y commodity
b) Consumer will buy less of X commodity and more of Y commodity
c) Consumer will buy more of X commodity and more of Y commodity
d) Consumer will buy both X commodity and Y commodity equally.

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