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Series ARSP/05 Set ~ 5
Roll No. Q.P Code 15/5/5
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 5 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ECONOMICS

Time allowed: 3 hours Maximum Marks: 80

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): The statistics of consumption are useful and helpful in providing the taxable liability of [1]
individuals and their standard of living.
Reason (R): Individuals discover how different groups spend their incomes from statistics relating to
consumption.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. Index no. is equal to: [1]

a) Sum of price relatives b) Average of the price relatives

c) None d) Product of price relative

3. The correlation between ages of husbands and wives is expected to be: [1]

a) Zero b) Negative

c) Partial d) Positive
4. Construct price index number from the following data by applying(Laspeyre’s Method) [1]

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) 144.82 b) 145.91

c) 154.32 d) 145.93
5. From the following which is not a kind of index number [1]

a) value b) quantity

c) price d) Quality
6. Index number for the base period is always taken as [1]

a) 100 b) 1

c) 50 d) 200
7. Scarcity arises because of [1]

a) Unlimited resources and unlimited wants. b) Unlimited resources and limited wants.

c) Limited resources and limited wants. d) Limited resources and unlimited wants.
8. A table should be: [1]

a) All of these b) Attractive

c) Comparable d) As per Objective

9. Cost of living index numbers are also used to find real wage by the process of [1]

a) Base shifting b) Deflating of index number

c) Splicing of index number d) None of the given

10. Calculate correlation coefficient of the following data: [1]

X 68 75 90 75 50 62 40 35

Y 10 12 14 10 10 13 9 8

a) 0.79 b) 0.77

c) 0.73 d) 0.75
11. What are the desirable properties of the base period? [3]
12. Which average would be suitable in the following cases? [3]
i. Average size of readymade garments.
ii. Average intelligence of students in a class.
iii. Average production in a factory per shift.
iv. Average wage in an industrial concern.
v. When the sum of absolute deviations from average is least.
vi. When quantities of the variable are in ratios.
vii. In case of open-ended frequency distribution.
OR
What do you understand by change in origin and change in scale?
13. What is classification of data? What should be its characteristics? [4]
14. Direction of export is shown in the following table. Prepare a pie diagram to show the percentage distribution of [4]
export.

Country Export (in %)

USA 25

Japan 15

UK 30

China 20

Others 10

OR
Explain different types of two dimensional diagrams.
15. What are different sources of Secondary data? [4]
16. Calculate the correlation coefficient between the height of fathers in inches (X) and their sons (Y). [6]

X 65 66 57 67 68 69 70 72

Y 67 56 65 68 72 72 69 71

17. From the following data, determine mode. [6]

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

Frequency 4 10 25 15 23 22 12 3

OR
Calculate Q1 and Q3 with the help of following data.

X 10 15 20 25 30 35 40 45 50 55 60 65 70

f 4 6 5 7 12 5 8 9 12 10 7 8 6

Section B
18. Due to the installation of a machine with the latest technology, the cost of production has decreased. It will lead [1]
to:

a) Increase in supply b) Decrease in supply

c) Expansion in supply d) Contraction in supply

19. The economic problem arises due to the fact that: [1]

a) resources have alternative uses b) human wants are unlimited

c) resources are scarce d) all of these

20. Excess capacity is a prominent feature of equilibrium under? [1]

a) Perfect competition b) gopoly

c) Monopoly d) Monopolistic competition

21. The shape of marginal revenue curve under monopoly is [1]

a) Positively sloped b) Horizontal

c) Negatively sloped d) Vertical

22. Variable costs vary with output because [1]
a) It changes on its own b) It is impossible to keep them fixed

c) It varies as it is the expenditure on the d) It does not remain constant in the long run
variable factors which can be changed in the
short run
23. Assertion (A): The positive relationship between demand and price occurs in the case of Giffen goods. [1]
Reason (R): There exists a very high positive income effect.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

24. The break- even point where TR=TC, the firm cannot earn abnormal profits [1]

a) Can’t say b) False

c) True d) May be
25. Revenue for a firm is [1]

a) Addition to Total revenue after a good is b) Average price of a product sold

sold

c) Money receipts from the sale of output d) Money spent on producing output
26. Average fixed cost (AFC) is indicated by: [1]

a) a rectangular hyperbola b) a straight line parallel to X-axis

c) a U-shaped curve d) a straight line parallel to Y-axis

27. Demand curve of a firm is perfectly elastic under: [1]

a) Oligopoly b) Monopolistic competition

c) Monopoly d) Perfect competition

28. Write 3 examples each of normative economics and positive economics. [3]
OR
What is an economic problem? Why does it arise?
29. Explain equilibrium price. How is it determined? [3]
30. Explain the Law of Demand with the help of a demand schedule. [4]
31. Explain a firm’s equilibrium under perfect competition, using a hypothetical schedule. [4]
OR
The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given
by the schedules below. Use the information to calculate the following:

Quantity 0 1 2 3 4 5 6 7 8

Price 52 44 37 31 26 22 19 16 13

Quantity 0 1 2 3 4 5 6 7 8

Total Cost 10 60 90 100 102 105 109 115 125

Use the information given to calculate the following:

a. The MR and MC schedules
b. The quantities for which MR and MC are equal
c. The equilibrium quantity of output and the equilibrium price of the commodity
d. The total revenue, total cost and total profit in the equilibrium
32. Explain the law of equi-marginal utility. [4]
33. What is meant by negative returns to a factor? Discuss any two reasons behind negative returns to a factor. [6]
34. Answer the following questions [6]
(a) State with reason whether the following items will have elastic or inelastic demand : [3]
i. Salt
ii. Medicines
iii. Liquor
iv. Electricity
(b) Price elasticity of demand of two goods A and B is (-3) and (-4) respectively. Which of the two goods [3]
has higher elasticity and why?