Directorate of Education, GNCT of Delhi

Suggestive Answer of Practice Paper

Class – XI
Economics (Code: 030)
Term – II (2021 – 2022)
Time Duration: 2 hrs. Maximum Marks: 40

Q.No Suggested Answer: -

1. 1. Helpful in formulation of policies.

2. Measuring inflation
3. Measuring changes in standard of living.
4. Fixing and increasing salaries of employees. (Any two)
Or
1. Quantitatively expressed.
2. Measure relative changes.
3. They are averages. (Any two)

2.
Standard deviation is the square root of the mean of the squares of the deviations
of the values from the mean. Formula is

( ̅)
𝜎=

Or
Merits
1. Based on all values.
2. Rigidly defined.
3. Least affected by fluctuations of sampling.
Demerits
1. Difficult to calculate.
2. Affected by extreme values.
3. Cannot be used for comparison.

3.
Positive:
1. Price and Supply
2. Income and Expenditure.
Negative:
1. Price and Demand
2. Temperature and Sale of woolens
4. Average Fixed Cost :- Fixed cost per unit output. AFC =
AFC curve is a rectangular hyperbola. Since TFC remains constant, AFC
keeps falling with increase in output but never reaches zero.
Or
The other name for Average Revenue curve is Price line.
This is because AR = = = P.

5. The statement is false because MP is rate of change in TP. Hence TP keeps

increasing even when MP is falling but is positive.

6.

Consumer price index Wholesale price index

1. Based on retail prices 1. Based on wholesale prices.
2. Includes services also 2. Does not include services.
3. Used to measure cost of living 3.Used to measure rate of inflation

Or

a) Selection of base year: Base year should be a normal year, free from
abnormalities like wars, earthquakes, floods, fires, famines, pandemic etc

b) Selection of items: Items selected should be representative and should be an

important part of the consumption pattern.

7.
X x = (𝑿 − 𝑿) 𝒙𝟐

14 -3 9

12 -5 25

16 -1 1

20 3 9

18 1 1

22 5 25

𝑋 = 102 70

x= = 17
 (𝐱 𝐱)𝟐
𝛔=
𝐍

= = √11.67

= 3.41
8.
Units of capital Units of labour Total product MP

2 1 10 10

2 2 24 14

2 3 40 16

2 4 50 10

2 5 58 8

2 6 64 6

2 7 68 4

2 8 68 0

2 9 60 -8

9. Stage 1: Units of labour 1 to 3 – MP 10, 14, 16

Stage 2: Units of labour 4 to 8 – MP 10, 8, 6,4, 0
Stage 3: Units of labour 8 to 9 – MP 0, -8

10. Qs = 50 + 15P
P= 2
Q = 50 + 15 x 2 = 50 + 30 = 80
∆
∆
= 15
∆
𝑒 = ∆
𝑥
𝑒 = 15 𝑥
𝑒 = 0.38
11. 25 Y
20
15
10
5
0 X
0 20 40 60 80

High degree negative Correlation.

Or

X Y 𝒙 = 𝑿 − 𝟑𝟒 𝒚 = 𝒀 − 𝟑𝟓 𝒙𝟐 𝒚𝟐 𝒙𝒚

48 45 14 10 196 100 140

35 20 1 -15 1 225 -15

17 40 -17 5 289 25 -85

23 25 -11 -10 121 100 110

47 45 13 10 169 100 130

ƩX =170 ƩY =175 Ʃx =0 Ʃy =0 Ʃx2 =776 Ʃy2 =550 Ʃxy =280

ΣX
x=
N
x= = 34 similarly 𝑌 = 35

∑ 𝒙𝒚
𝒓=
∑ 𝒙𝟐 × 𝜮𝒚𝟐

𝟐𝟖𝟎
𝒓=
√𝟕𝟕𝟔 × 𝟓𝟓𝟎

𝟐𝟖𝟎
𝒓=
√𝟒𝟐𝟔𝟖𝟎𝟎

𝟐𝟖𝟎
𝒓=
𝟔𝟓𝟑. 𝟑

𝒓 = 𝟎. 𝟒𝟑
12. a) Minimum Support Price is also known as ‘Price Ceiling’.
Impacts:
1. Income stability to farmers.
2. Financial burden on the government.

b) Shortage of food grains leads to decrease in supply of food grain. Demand

remaining same, there is excess demand in the market. Excess demand puts
upward pressure on the price. This leads to contraction in demand and extension in
supply and the equilibrium price of food grains increases.

13 a)
Extension in supply Increase in supply
1. Increase in quantity 1. Increase in supply due
supplied due to increase in to factors other than
price of the commodity. price of the commodity.
2. Other factors remain 2. Price remains constant.
constant.
3. Leads to rightward 3. Leads to rightward shift
movement along the in the supply curve.
supply curve.

b) Free entry and exit of firms implies that there are no barriers to entry and exit of
firms in the market. If the industry is earning supernormal profits, new firms can
enter the market and if industry is suffering losses, existing firms and leave the
market at their free will. Implication of this feature is that a firm always earns normal
profit in the long run.