Class XI Session 2025-26

Subject - Economics
Sample Question Paper - 1
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): A person has to forecast when the demands would be great and accordingly decide what amounts [1]
of reserves he must have.
Reason (R): The banker plays an important role in commerce and industry. He provides finance to the producer
and the trader.

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. In Laspeyre’s index number, the weight pertains to [1]

a) Current year quantities b) Base year quantities

c) None of the given d) Both Base year and current year quantities
3. For 10 observations, ∑ X = 130; ∑ Y = 220; ∑ X = 2290; ∑ Y
2 2
= 5510, ∑ XY =3467, Find r [1]

a) 0.8475 b) 0.5947

c) 0.9574 d) 0.7984
4. An enquiry into the budgets of the middle class families in a certain city gave the following information: What is [1]
the cost of living index during the year 2004 as compared with 1995?

Expenses Food Fuel Clothing Rent Misc.

Price (Rs.)2004 1500 250 750 300 400

Price (Rs.)1995 1400 200 500 200 250

a) 134.5 b) 125.49

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 c) 131.48 d) 132.5
5. _________ reflects on the price change experienced by families of people. [1]

a) none b) consumer price index

c) whole sale price index d) weighted average price

6. A consumer price index measures changes in: [1]

a) Consumer prices b) Producer's prices

c) Wholesale prices d) Retail prices

7. The long queues at railway booking counters, crowded buses, and trains, shortage of essential commodities, rush [1]
to get a ticket to watch a new film, etc. are all manifestations of

a) Problems b) Scarcity

c) Abundance d) Allocation
8. Data represented through a histogram can help in finding graphically the [1]

a) Mode b) All of these

c) Median d) Mean
9. P01 is the index for time [1]

a) 0 on 1 b) 0 on 0

c) 1 on 0 d) I on 1
10. The data consist of scores on three different scales of Political attitudes. [1]

Scale-A Scale-B Scale-C

3 5 4

2 6 6

1 5 8

5 2 2

7 8 1

The Scale-A and the Scale-C are likely to:

a) Correlate negatively b) Have identical means

c) Reciprocate d) Correlate positively

11. Calculate Laspeyre’s price index number from the following data. [3]

Price (Rs.) Quantity Bought

Commodity
2014 2015 2014 2015

X 50 52 10 12

Y 7 9 3 4

Z 3 5 7 7

12. Following table gives marks in Statistics of the students of class XI. Find out mean marks using direct method. [3]

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 Mid-Value 5 10 15 20 25 30

Number of Students 5 7 9 10 8 6

OR
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.
13. Distinguish between Absolute and relative frequencies. [4]
14. Construct a histogram for the following frequency distribution. [4]

Marks Obtained Number of Students

1-10 4

11-20 6

21-30 12

31-40 20

41-50 8

51-60 10

OR
Discuss some of the uses of diagrams.
15. Discuss advantages and disadvantages 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. Write merits and demerits of mean and median. [6]

OR
Find the missing frequency of the group 20-30, if it is given that M=28.

Class Interval 0-10 10-20 20-30 30-40 40-50

Frequency 5 8 f 16 6

Section B
18. The coefficient of price elasticity of supply of a good is 3. It is known as ________. (Choose the correct [1]
alternative)

a) Perfectly Inelastic Supply b) Inelastic Supply

c) Elastic Supply d) Unitary Elastic Supply

19. Which of the following is a statement of normative nature in economics? [1]

a) Economics is study of choices/alternatives. b) According to an estimate, in spite of severe

shortage, more than 10% of houses in
Indian cities are lying vacant.

c) Government should be concerned with how d) Accommodation of refugees is posing a big

to reduce unemployment. problem for the Europe.
20. Is AR = price [1]

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 a) Yes b) No

c) May be d) Can’t say

21. AR is more elastic in monopolistic competition than in monopoly as [1]

a) Many close substitutes do not exist in b) Many close substitutes exist in monopoly
monopolistic competition competition

c) Many close substitutes do not exist in d) Many close substitutes exist in monopolistic
monopoly competition competition
22. The relationship between AC & MC is [1]

a) AC continues to rise till MC is less than AC b) AC continues to fall till MC is less than AC

c) AC continues to fall till MC is greater than d) AC continues to fall till MC is equal to AC

AC
23. Assertion (A): In the case of inferior goods, the income effect is positive. [1]
Reason (R): When there is an increase in income it causes a decrease in its demand.

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. What is price line [1]

a) The MR curve b) The AR curve

c) The demand curve d) The TR curve

25. Suppose Total Revenue is rising at a constant rate as more and more units of a commodity are sold, Marginal [1]
Revenue would be (choose the correct alternative):

a) Less than average revenue b) Greater than average revenue

c) Equal to average revenue d) Rising

26. If a firm produces zero output in the short period, then: [1]

a) TC will be zero b) MC will be zero

c) FC will be positive d) VC will be positive

27. Marginal Revenue of a firm is constant throughout under: [1]

a) All of these b) Monopolistic Competition

c) Oligopoly d) Perfect competition

28. If an Economy is not able to utilise its available resources efficiently, what will be the effect on PPF? What will [3]
you suggest for economic growth?
OR
Central problems arise because resources are scarce and have alternate uses and wants are unlimited. Explain.
29. What conditions must hold if a profit-maximizing firm produces positive output in a competitive market? [3]
30. State the determinants of the market demand curve. [4]
31. Using your judgement as an entrepreneur, would you agree with the following statement? [4]
Maximisation of profit implies equilibrium, but equilibrium does not always imply maximisation of profit.

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 OR
Explain why will a producer not be in equilibrium if the conditions of equilibrium are not met.
32. Marginal rate of substitution of X for Y is higher than the ratio of prices. Explain the reaction of the consumer in [4]
this situation.
33. Calculate the MP of variable factor and indicate the various phases of Law of Variable Proportions from the [6]
following schedule:

Units of variable factor 0 1 2 3 4 5 6

TP (in units) 0 50 110 150 180 180 150

34. Answer the following questions [6]

(a) When price of a goods falls from ₹ 8 per unit to ₹ 7 per unit, its demand rises from 12 units to 16 [3]
units. Compare expenditure on the goods to determine whether demand is elastic or inelastic.
(b) Calculate price elasticity of demand by comparing total expenditure on a good, given in the following [3]
schedule.

Price (P) Demand (Q)

(Rs.) (units)

5 120

4 150

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 Solution

Section A
1. (a) Both A and R are true and R is the correct explanation of A.
Explanation:
A person has to forecast when the demands would be great and accordingly decide what amounts of reserves he must have
because the banker plays an important role in commerce and industry. He provides finance to the producer and the trader.
2.
(b) Base year quantities
Explanation:
A weighted aggregative price index using base period quantities as weights is known as Laspeyre’s price index.
This method uses the base period quantities as weights.

3.
(c) 0.9574
Explanation:
N ∑ XY −∑ X ∑ Y
r=
2 2 2 2
√N ∑ X −(∑ X) √N ∑ Y −(∑ Y )

10(3467)−(130)(220)
= = 0.9574
2 2
√10(2290)−(130) √10(5510)−(220)

4.
(b) 125.49
Explanation:
sum of p1 q0
cost of living index = × 100 =
3200

2550
× 100 = 125.49
sum of p0 q0

5.
(b) consumer price index
Explanation:
Consumer index number (CPI) or cost of living index numbers are helpful in studying the change in consumer expenditure
.Here, family is basically a consumer unit.

6.
(d) Retail prices
Explanation:
In India, three CPI’s are constructed. They are CPI for industrial workers (1982 as base), CPI for urban non manual employees
(1984–85 as base), and CPI for agricultural labourers (base 1986–87). They are routinely calculated every month to analyse the
impact of changes in the retail price on the cost of living of these three broad categories of consumers.

7.
(b) Scarcity
Explanation:
Rush, crowd, etc at such places is due to the inability of absorbing the wants which are due to scarcity.

8. (a) Mode
Explanation:
Histogram is only used to plot the frequency of score occurrences in a continuous data set that has been divided into classes,
called bins. .The height of the rectangles in the histogram is marked by the frequencies of the class interval. So, the highest

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 rectangle represents the modal class and then mode is computed accordingly.
9.
(c) 1 on 0
Explanation:
P01 is the index for time “1” on time “0” as base

10. (a) Correlate negatively

Explanation:
Correlate negatively as the value of the correlation coefficient is -1.
11. Construction of Price Index Number
In Laspayre's index number, we use base year quantity as weight and compute weighted index by aggregative method.
2014 (Base Year) 2015 (Current Year)
Commodity p0q0 p1q0
p0 q0 p1 q1

X 50 10 52 12 500 520

Y 7 3 9 4 21 27

Z 3 7 5 7 21 35

Σp0 q0 = 542 Σp1 q0 = 582

Σp q
Laspeyres Price Index Number P 01 =
1

Σp0 q0
0
× 100 =
582

542
× 100 = 107.38

12. In this series, mid-values are given. The calculation of arithmetic mean involves the same procedure as in the case of exclusive
series. We have to multiply the mid values with f and then find Σf m and divide it by Σf .
Calculation of Arithmetic Mean
Mid-Value (m) Number of Students (f) fm

5 5 25

10 7 70

15 9 135

20 10 200

25 8 200

30 6 180

Σf = 45 Σf m = 810

So, we get Σf m = 810 and Σf = 45 . Applying the formula of mean, we get

¯¯¯
¯ Σf m 810
X = = = 18
Σf 45

Hence, required arithmetic mean=18 marks

OR
When using the short cut method, we have to take an assumed mean. Here, let assumed mean A to be equal to 54. Then we have
the following table.
Calculation of Arithmetic Mean
[Link]. Marks Obtained (X) dx (X-A) A=54

1 50 -4
-4
2 54 0

3 56 +2

4 58 +4
+17
5 59 +5

6 60 +6

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 n=6 Σdx = +13

Now, n=6, Σdx =+13 and A=54

¯¯¯
¯
Applying the formula of mean, X = A + Σdx

n
= 54 +
13

6
= 54 + 2.17 = 56.17

Hence, required arithmetic mean =56.17

13. Absolute frequency Relative frequency

i).The absolute frequency is the number of times a i).A relative frequency is the number of times a particular value of a
particular value (or particular set of values) of a variable is observed relative to the total number of observed values of
variable is observed. that variable.

ii).Absolute frequencies are usually expressed as ii).Relative frequencies are usually expressed as ratios, rates,
whole numbers. proportions or percentages.

iii).For example, in a coin tossing exercise after 10

iii).For example the ratio of heads to tails is 6:4.
tosses we have 6 heads and 4 tails
14. First of all, we have convert the given class intervals into exclusive class intervals. The steps for this conversion is given below:
Step 1. First of all, the difference between the lower class limit of the second class and the upper class limit of the first class is
computed, i.e.,11 - 10 = 1.
Step 2. Then this difference is divided by 2, i.e., = 0.5
1

Step 3. Then 0.5 is subtracted from the lower class limit and added to the upper class limit of each class to form an exclusive
distribution.
The distribution will now take the following form:-
Marks Obtained Number of Students

0.5-10.5 4

10.5-20.5 6

20.5-30.5 12

30.5-40.5 20

40.5-50.5 8

50.5-60.5 10
Step 4. The distribution is represented by the given histogram. On the X axis we show marks obtained and on the Y axis number
of students are shown.

OR
Some uses of the diagrams are as follows:
a. Attractive and Impressive: Diagrams are attractive and impressive.
b. Simple and easily understandable: Diagrams are easy and simple to understand. Knowledge of mathematics is not required
to understand diagrams.
c. Useful in Comparison: Diagrams prove very useful in comparing data from one year to another or otherwise.

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 d. Helps in forecasting: It helps us to predict future values on the basis of past statistics.
e. Save time effort and energy: By simplifying data, diagrams save time, energy and effort.
f. Diagrams are useful in all fields: From sports to education to medical and engineering, in all fields ,we make use of
diagrams. They are specifically useful for policy formulation and decision making.
15. Advantages of Secondary Data:
1. Sometimes it is difficult to obtain primary data; in these cases, getting information from secondary sources is easier and
possible. Sometimes primary data does not exist in such situation one has to confine the research on secondary data.
2. Sometimes primary data is present but the respondents are not willing to reveal it in such case too secondary data can suffice
3. Secondary data is often readily available. After the expense of electronic media and internet the availability of secondary data
has become much easier.
Disadvantages of Secondary Data:
1. The investigator cannot decide what is to be collected but has to rely on whatever is available.
2. One can only hope that the data is of good quality
3. It is not possible to get additional clarification or information.
16. Calculation of Coefficient of Correlation

x2 y2
¯¯¯
¯ ¯¯¯
¯ ¯
¯¯¯ ¯
¯¯¯
X x(X - X ), X = 66.75 Y y(Y - Y ), Y = 67.5 xy

65 -1.75 3.0625 67 -0.5 0.25 0.875

66 -0.75 0.5625 56 -11.5 132.25 8.625

57 -9.75 95.0625 65 -2.5 6.25 24.375

67 0.25 0.0625 68 0.5 0.25 0.125

68 1.25 1.5625 72 4.5 20.25 5.625

69 2.25 5.0625 72 4.5 20.25 10.125

70 3.25 10.5625 69 1.5 2.25 4.875

72 5.25 27.5625 71 3.5 12.25 18.375

Σ X = 534 Σ x2 = 143.5 Σ Y = 540 Σ y2 = 194 Σ xy = 73

Here, n = 8, Σ X = 534, Σ x2 = 143.5​​, Σ Y = 540, Σ y2 = 194, Σ xy = 73

¯¯¯
¯ ¯
¯¯¯
Now, X = ΣX

n
=
534

8
= 66.75, and Y =
ΣY

n
=
540

8
= 67.5
Σxy 73 73 73
r = = = = = 0.438
√143.5×194 √27839 166.85
√Σx2 ×Σy 2

It indicates that there is low degree of positive correlation between height of fathers and sons.
17. MERITS
Sr no. Mean Median

1. No need of arrangement of data Definite value

2. Easy to calculate Expressed/determined graphically.

3. Based on all values of series. Easy to calculate

DEMERITS
Sr. No. Mean Median

1. Can't be located graphically Arrangement of data is required

2. Calculation not possible if single item missing Not suitable for algebric treatment

3. Not used in case of qualitative measurement Affected by fluctuations of items.

OR
Let f be the frequency of class interval 20-30
Calculation of Missing Frequency
Class Interval Frequency (f) Cumulative Frequency (cf)

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 0-10 5 5

10-20 8 13

20-30 f 13+f

30-40 16 29+f

40-50 6 35+f

n = Σf = 35 + f

Since Median is 28, it lies in the class interval 20-30.

Now,
l1 = 20 , n = Σf = 35 + f , cf = 13 and h =10
Substituting the values in the given formula,we get:
n 35+f
−cf −13
2 2
M = l1 + × h ⇒ 28 = 20 + × 10
f f
35+f
−13
2 35+f
⇒ 8 = × 10 ⇒ 8f = ( − 13) × 10
f 2

35+f −26
⇒ 8f = ( ) × 10
2

⇒ 16f = 350 + 10f - 260

=>6f= 90
90
∴ f = = 15
6

Thus, the missing frequency is 15.

Section B
18.
(c) Elastic Supply
Explanation:
Elastic Supply

19.
(c) Government should be concerned with how to reduce unemployment.
Explanation:
Government should be concerned with how to reduce unemployment.

20. (a) Yes

Explanation:
AR = price as AR is the revenue generated per unit of output sold.
Price output Total Revenue Average Revnue

12 3 36 36/3=12 = price

11 4 44 44/4=11=price

21.
(d) Many close substitutes exist in monopolistic competition
Explanation:
In monopoly, there is a single seller and no close substitutes are available for the product. So the customer cannot shift to any
other product(as there are no substitutes) if the monopolist increases the price of the product. In such a case the demand is less
elastic or inelastic. Whereas in monopolistic competition, there are large number of sellers and substitutes are available, so the
customer will shift to substitute product if there is a increase in price. As such in this situation the demand is more elastic.

22.
(b) AC continues to fall till MC is less than AC
Explanation:
When MC <AC , AC falls

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 When MC=AC , AC is constant and at ita minimum point
When MC> AC, AC rises

23.
(d) A is false but R is true.
Explanation:
In the case of inferior goods, the income effect is negative. When there is an increase in income it causes a decrease in its
demand.

24.
(b) The AR curve
Explanation:
The AR is essentially the price of the commodity.

25.
(c) Equal to average revenue
Explanation:
Equal to average revenue

26.
(c) FC will be positive
Explanation:
At zero level of output, TVC is zero and TC is just the fixed cost (FC) because in the short run, fixed cost cannot be changed.
Therefore, FC will be positive

27.
(d) Perfect competition
Explanation:
Perfect competition

28. If any economy is not able to utilise resources efficiently, it will be shown by the point inside the PPC. Any point inside the
production possibility curve corresponds to under utilization or inefficient utilisation of resources. It shows that the actual level of
output is less than the potential level of output.
OR
Central problems arise in an economy due to scarcity of resources, having alternative uses in relation to unlimited wants. The
central problem of all economies is scarcity. Scarcity forces individuals, firms, governments and societies to make choices. By
this, three basic questions arise:
i. What to produce,
ii. How to produce,
iii. For whom to produce.
29. The following three conditions must hold if a profit-maximizing firm produces a positive level of output (say equilibrium output
Q*) in a competitive market:
i. MR must be equal to MC at Q*.
ii. MC should be upward sloping or rising at Q*.
iii. In short-run - Price must be greater than or equal to AVC. i.e. P ≥ AVC at Q*.
In the long run - Price must be greater than or equal to Long-run average cost.
30. Determinants of the market demand curve are as follows:
1. price
2. income
3. prices of related goods and services
4. tastes and preferences

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 5. expectations
31. Yes, we do agree with the statement that maximisation of profit implies equilibrium, but equilibrium does not always imply
maximisation of profit. Profit maximisation is only a goal. A firm may or may not achieve it. Profit is maximised when the
difference between total revenue and the total cost is maximum. But equilibrium can be struck even in the state of losses, when the
two conditions are satisfied, i.e., (i) MR = MC and (ii) MC is rising. The given figure illustrates it.
It is applied only in a situation of low price prevailing in the market when the firm is covering the variable cost, but not the total
cost.

Equilibrium is struck at point T, as here:

(i) MR = MC, and (ii) MC is rising.
But at this level of output:
AR (= LT) < AC (= LK)
⇒ Loss = TK per unit of output

OR
.A producer attains equilibrium when following two conditions are met:
i. Marginal Cost (MC) = Marginal Revenue (MR)
ii. marginal cost must be rising after the point of equality.
Yes, it is necessary that equilibrium is attained where marginal cost = marginal Revenue, however, it is not sufficient
condition, as both the conditions must be fulfilled as shown in the diagram below.

We can see that Marginal Revenue is equal to Marginal Cost at point E1 and at point E. However, point E1 is not the
equilibrium point, as Marginal Cost is falling after point E1, which shows that as producer increases output, profit level also
increases.
The producer will continue to Increase his production up to point E, where marginal Cost is equal to marginal Revenue again
and marginal cost > Marginal Revenue thereafter. Hence, point E is equilibrium point where the profit of the firm is
maximised.
32. Marginal rate of substitution of X for Y is higher than the ratio of prices.
PX
A consumer strikes his equilibrium when M RS XY =
PY
.
P P
In a situation when M RS XY >
X

PY
, equilibrium of the consumer is disturbed. On the assumption that X

PY
remains constant (and
PX
also, income of the consumer is constant) equilibrium can be struck only when MRSXY starts falling and becomes equal to PY
.
This happens only when the consumer starts consuming more of X in place of Y. That is, he moves downward to the right along

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 the IC. Convexity of the IC ensures that as the consumer moves downward to the right along his IC, MRSXY tends to fall. Briefly,
PX
when M RS XY >
PY
the consumer would react to this situation by substituting X for Y so that MRSXY declines and becomes
equal to price ratio.
33. Law of variable proportions occupies an important place in economic theory. This law examines the production function with a
one-factor variable, keeping the quantities of other factors fixed. In other words, it refers to the input-output relation when output
is increased by varying the quantity of one input.

Variable Factors TP (in units) MP (in units)

Stage
(VF) (TP) MPn = TPn - TPn-1

0 0 -

1 50 50 1st (Increasing returns to a factor)

2 110 60

3 150 40

4 180 30 2nd (Diminishing returns to a factor)

5 180 0

6 150 -30 3rd (Negative returns to a factor)

34. Answer the following questions
(i) Price (₹) Quantity (Units) TE (₹)

8 12 96

7 16 112
Price decreases and TE increases. It shows inverse relationship between price and total expenditure. So, there is elastic
demand or greater than unitary elastic demand.
(ii) Total
Price Demand
Expenditure
(Rs.) (Units)
(Price x No. of units)

5 120 600

4 150 600
Total expenditure has remained same so Ed = 1 that is unitary elastic.

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