PRUDENCE SCHOOL

FINAL EXAMINATION
SESSION 2021-22
SUBJECT: ECONOMICS-030 (SET A)
CLASS: XI
Max. Marks: 40
Day & Date: Friday, 4th March 2022 Duration: 2hours
General Instructions: -
 This is a Subjective Question Paper containing 13questions.
 This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of
5 marks each.
 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.
 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.
 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.
 This question paper contains Case/Source Based Questions.

1 Distinguish between ‘Expansion of Supply’ and ‘Decrease in Supply’. Use diagrams. 2

OR
Distinguish between ‘Perfectly Elastic Supply’ and ‘Perfectly Inelastic Supply’. Use diagrams.

2 Suppose the value of demand and supply curves of a commodity-X is given by the following two 2
equations simultaneously:
Qd=200-10P and Qs=50+15P
a) Find the equilibrium price and equilibrium quantity.
b) Suppose price of a factor input used in producing the commodity has changed,
resulting in new supply curve given by the equation: Qs=100+15P. Find the new
equilibrium price and new equilibrium quantity.

3 In case of imperfect competition, Marginal revenue curve is always steeper than the Average 2
revenue curve when price is lowered to sell more output. Do you agree? Justify your answer.
OR
In case of perfect competition, Marginal revenue curve always coincides with the Average
revenue curve. Do you agree? Justify your answer.

4 Discuss any two uses of Index numbers. 2

OR
Distinguish between Wholesale Price Index (WPI) and Cost of Living Index.

5 During a certain period, the cost of living index goes up from 100 to 200 and the daily wage of a 2
worker was also raised from 80 to 120. Has the worker really gained? If so, by how much in
real terms?

Page 1 of 3
6 Calculate the cost of living index number for 2019 taking 2012 as base year from the following 3
data.
Items Quantity Price in 2012 Price in 2019
(in kg) (in /kg) (in /kg)
A 15 10.00 12.00
B 20 15.00 21.00
C 8 5.00 7.50
D 12 15.00 18.00
E 10 8.00 12.50

7 Giving valid reasons explain which of the following will be included in Explicit Cost? 3
a) A producer borrows money and opens a shop.
b) A person starts a taxi service. The taxi is financed by a bank.
c) Normal profit earned in the production process by the owner.

OR

A farmer undertakes farming on the land owned by him with only family members working on it.
He borrows 2,00,000 from State Bank of India @ 10% per annum for this purpose. What are
explicit costs and implicit costs directly identifiable in it? Give reason for your answer.

8 Suppose the short run production function of a firm is: 3

Q = 70L2K2
a) Find the Total Physical Product which the firm can produce by employing 10 units of
labour and 10 units of capital.
b) Find Average Physical Product at 10 units of Labour.
c) Find the Marginal Physical Product if the firm employs the 11th unit of labour.

Read the following news article carefully and answer question number 9 and 10 given
below:

MSP’s tilt in favour of oilseeds see 23% increase in acreage of mustard,

wheat sown area decreases.
NEW DELHI: The minimum support price’s (MSP) tilt in favour of oilseeds has shown results
with the acreage of mustard reporting a 23% increase this year, so far, over its sown area in the
corresponding period last year. It is expected to increase a bit further as sowing in the ongoing
Rabi (winter crop) season continues till the end of this month.

As part of its move to encourage farmers towards oilseeds and reduce the country's import bills,
the agriculture ministry had before the beginning of the Rabi sowing season last year
announced the highest hike (both in percentage and absolute term) of 8.6% in the MSP of
mustard and lowest hike of 2% in case of the most popular winter-sown crop wheat.

Page 2 of 3
9 Identify what type of Government intervention is being discussed in the above case study- Price 3
Ceiling or Price Floor? Also, briefly explain it with the help of a diagram.

10. What will be the likely effect of the MSP case study discussed above on the following supply 3
curves? Give reasons for your answers.
a) Supply curve of wheat
b) Supply curve of oilseeds

11 Find Coefficient of correlation from the following figures: 5

X 2.85 3.85 4.85 5.85 6.85 7.85 8.85 9.85 10.85
Y 100 200 300 400 500 600 700 800 1000

OR
Calculate the number of items, when standard deviation of series X is 6 and coefficient of
correlation is 0.75. Also given that the sum of the product of deviations of X and Y from actual
mean is 180 and sum of squares of deviations of Y from actual mean is 160.

12 a) Suppose there is a sudden increase in birth rate. The increase in population has increased 3
the demand for shirts. At the same time, due to fall in price of cotton, the supply of shirts
has increased significantly. How will it affect the equilibrium price and equilibrium
quantity of shirts? Explain briefly using diagrams.
2
b) ‘Under Perfect competition price remains same for all levels of output sold.’ Justify the
given statement with valid points.

In two Towns A and B daily pocket money and Variance are given below:
13
Town Average daily pocket money (in ) Variance (in ) Number of teenagers
A 70 1024 565
B 60 1225 435
a) Which town A or B pays out the larger amount of daily pocket money? Give reason for
your answer. 2
b) Which town is more variable in terms of Pocket money? Justify your answer. 3

Page 3 of 3