Maximum Marks: 80

Time Allowed: : 3 hours

General Instructions:
1. This question paper contains two sections:
Section A – Micro Economics
Section B – Statistics
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to
be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to
be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be
answered in 100 to 150 words.

Section A
1. Assertion (A): Statistical techniques are used to analyze economic problems of
countries like poverty, price control, etc.
Reason (R): The policy of family planning can be made effective in controlling the
population of the country.
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.
2. ______ is the ratio of the price of a certain commodity at the current year to its price
at the base year.
a) price index b) none of these c) price relative d) relative price
3. The range of simple correlation coefficient is:
a) Minus one to plus one b) 0 to infinity
c) 0 to plus one d) Minus infinity to infinity
4. Construct price index number from the following data by applying(Fisher’s ideal
Method
Price Quantity Price Quantity
Commodity
(2000) (2000) (2001) (2001)
A 2 8 4 5
B 5 12 6 10
C 4 15 5 12
D 2 18 4 20
a) 144.5 b) 147.3 c) 144.7 d) 147.5
5. If the prices of all commodities in a place have increased 1.25 times in comparison
to the base period, the index number of prices of that place is now
a) 125 b) 150 c) 350 d) None of these
6. If the index number of prices at a place in 1994 is 250 with 1984 as base year, then
the prices have increased on average
a) 450 b) 350 c) 250 d) 150
7. Which limitation of statistics is highlighted in the below example
In cloth business profit earned in three years is ₹1000, ₹2000 and ₹3000 and in the
paper business profit earned is ₹3000, ₹2000 and ₹1000. Both businesses earning
the same average profit ₹2000 that shows both have the same economic status.
But actually cloth business is making profit and paper business is declining.
a) Statistics of numerical facts only b) Prone to misuse
c) Study of aggregates only d) Without reference result may prove to wrong
8. The most accurate mode of data presentation is:
a) Diagrammatic method b) Textual presentation
c) None of these d) Tabulation
9. Consumer price index numbers are prepared for
a) Farmers b) All people c) Factor employees
d) Well defined section of people
10. Calculate Karl Pearson’s coefficient of correlation on the following data:
X 15 18 21 24 27 30 36 39 42 48
Y 25 25 27 27 31 33 35 41 41 45
a) 0.75 b) 0.45 c) 0.89 d) 0.98
11. Explain four limitations of consumer price index numbers.
12. Calculate the arithmetic mean of marks of 6 students by assumed mean or
short-cut method. Marks obtained (X) : 50, 54, 56, 58, 59, 60.
OR
Calculate the mean farm size of cultivating households in a village from the
following data.
Farm Size (in acres) 64 63 62 61 60 59
Number of Cultivating Households 8 18 12 9 7 6
13. Convert the following inclusive class interval into an exclusive class interval.
Inclusive Class Interval Frequency (f)
0-99 2
100-199 4
200-299 5
300-399 6
400-499 3
500-599 5
Total 25
14. Construct the histogram for the following distribution.
Marks Obtained Number of Students
0-10 6
10-20 10
20-30 26
30-40 22
40-60 10
60-90 9
OR
Draw the ‘less-than’ and ‘more-than’ ogive from the data given below
Weekly Wages (in Rs.) Number of Workers
0-20 10
20-40 20
40-60 40
60-80 20
80-100 10
15. “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.
16. From the data given below, calculate Karl Pearson’s coefficient of correlation
between the density of the population and death rate by step deviation method.
Region Area(in sq km) Population Death
A 200 40000 480
B 150 75000 1200
C 120 72000 1080
D 80 20000 280
17. Calculate the value of the median, first quartile (Q ) and third quartile (Q ) from
1 3

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
OR
Sonia has annual income of Rs 1,00,000 while Mr. Sanju has an annual income of Rs
80, 00,000. The average income of Sonia and Sanju is Rs 45,00,000 per annum. Do
you think average income reflects the correct picture of the life of Sonia and Sanju?
Section B
18. In case of increase in supply, we move:
a) from upper point to lower point of the supply curve
b) from lower point to upper point of the supply curve
c) to right on another supply curve
d) to left on another supply curve
19. A statement which does not offer any suggestion is known as:
a) normative statement
b) none of these
c) positive statement and normative statement
d) positive statement
20. The concept of supply curve is relevant only for?
a) Monopoly
b) Monopolistic competition
c) Oligopoly
d) Perfect competition
21. Which of the following statements is appropriate in case of monopoly?
a) Slope of both AR and MR curves is upwards
b) Slope of both AR and MR curves is downwards and MR curve is below AR
c) Slope of both AR and MR curves is downwards and MR curve is above AR
curve
d) AR curve slopes upward while MR curve slopes downward
22. AC and AVC curves never meet each other because
a) Their difference is AFC is always greater than AC
b) Their difference is AFC is always greater than zero
c) Their difference is AFC is always negative
d) Their difference is MC is always greater than zero
23. Assertion (A): A person tends to buy more or less of a commodity.
Reason (R): Individual person's likes and dislikes tend to change with time.
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.
24. A firm under perfect competition is a price taker not a price maker due to
a) Supply of identical goods by all sellers
b) Supply of differentiated goods by all sellers
c) Supply of rare goods by all sellers
d) Greater belief in the market forces
25. The Total revenue become negative when
a) TR is constant and maximum
b) TR stops rising at increasing rate
c) Never
d) TR starts rising
26. Average variable costs can be defined as:
a) TVC - Q b) TVC + Q
c) TVC ÷ Q d) TVC × Q
27. A competitive firm in the short run incurs losses. The firm continues
production, if?
a) P<AVC b) P=AVC
c) P>=AVC d) P>AVC
28. Give any three differences between Micro Economics and Macro Economics.
OR
Distingush between positive economics and normative economics.
29. What is meant by a product being perfectly homogeneous? What is its
implication for the price charged by producers in the market?

30. How does change in price of a complementary good affect the demand of the
given good? Explain with the help of an example.
31. The following table shows the total revenue and total cost schedules of a
competitive firm. Calculate the profit at each output level. Determine also the market
price of the good.
Quantity Sold TR TC Profit
0 0 5
1 5 7
2 10 10
3 15 12
4 20 15
5 25 23
6 30 33
7 35 40
OR
Is a producer in equilibrium under the following situations?
i. When marginal revenue is greater than marginal cost.
ii. When marginal revenue is equal to marginal cost.

Give reasons for your answer.

32. Explain the conditions of consumer’s equilibrium under indifference curve
approach.
33. Explain the meaning of increasing returns to a scale and decreasing returns
to a scale with the help of total physical product schedule.
34. Answer the following questions
1. Price Elasticity of Demand of good X is (-2) and of good Y is (-3). Which of the
two goods are more price elastic and why?
2. When price of a good is Rs 13 per unit, the consumer buys 11 units of that
good. When price rises to Rs 15 per unit, the consumer continues to buy 11
units. Calculate Price Elasticity of Demand.