Students can access the CBSE Sample Papers for Class 11 Economics Education with Solutions and marking scheme Term 2 Set 3 will help students in understanding the difficulty level of the exam.

CBSE Sample Papers for Class 11 Economics Term 2 Set 3 with Solutions

Time : 2 Hours
Maximum Marks : 40

General Instructions:

  • This is a subjective question paper containing 13 questions.
  • This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks each.
  • Section A, 2 marks questions are Short Answer Type Questions-Answer them in 30-50 words.
  • Section B, 3 marks questions are Short Answer Type Questions-Answer them in 50-80 words.
  • Section C, 5 marks questions are Long Answer Type Questions-Answer them in 80-120 words.
  • This question paper contains Case/Source Based Questions.


Section – A
(2 Marks)

Question 1.
Discuss Simple Average of Price Relative Method. (2)
Give reason:
(i) Standard deviation is the best measure of dispersion.
(ii) When correlation coefficient (r) is between + 0.75 and + 1, high degree of positive correlation and when it is between – 0.75 to -1 ,high degree of negative correlation. (2)

Question 2.
Compute Coefficient of correlation from the following data:

X-Series Y-Series
Mean 25 38
Sum of Squares of Deviation from Mean 225 324

The Sum of products of deviation of X and Y-series from their respective mean is 30. A number of pairs of observations is 10. (2)
Average daily wage of 100 workers of a factory was ₹400 with a standard deviation of ₹80. Each worker is given a raise of ₹40. What is the new average daily wages and standard deviation? Have the wages become more or less uniform? (2)

Question 3.
When does a production function satisfy increasing returns to a factor? (2)

Question 4.
A firm supplies 10 units of a good at a price of ₹5 per unit. Price elasticity of supply is 1.25. What
quantity will the firm supply at a price of ^ 7 per unit? (2)
Explain any two causes of “Decrease” in supply of a commodity. (2)

Question 5.
Why can a firm not earn abnormal profits under perfect competition in the long run₹Explain. (2)

Section – B
(3 Marks Each)

Question 6.
Calculate the correlation coefficient between X and Y and comment on their relationship. (3)

X -3 -2 -1 1 2 3
Y 9 4 1 1 4 9

Question 7.
Complete the following schedule : (3)

Units Produced TPP(in₹) APP (in₹) MPP (in₹)
1 150
2 190
3 180
4 640

Read the hypothetical case study and answer the Q. 8 and Q. 9 that follows:

The slope of a total revenue curve is particularly important. It equals the change in the vertical axis (total revenue) divided by the change in the horizontal axis (quantity) between any two points. The slope measures the rate at which total revenue increases as output increases. We can think of it as the increase in total revenue associated with a 1-unit increase in output. The increase in total revenue from a 1-unit increase in quantity is marginal revenue. Thus marginal revenue (MR) equals the slope of the total revenue curve.

How much additional revenue does a radish producer gain from selling one more pound of radishes? The answer, of course, is the market price for 1 pound. Marginal revenue equals the market price. Because the market price is not affected by the output choice of a single firm, the marginal revenue the firm gains by producing one more unit is always the market price.

The marginal revenue curve shows the relationship between marginal revenue and the quantity a firm produces. For a perfectly competitive firm, the marginal revenue curve is a horizontal line at the market price. If the market price of a pound of radishes is $0.40, then the marginal revenue is $0.40. Marginal revenue curves for prices of $0.20, $0.40, and $0.60. In perfect competition, a firm’s marginal revenue curve is a horizontal line at the market price.

Price also equals average revenue, which is total revenue divided by quantity. To obtain average revenue (AR), we divide total revenue by quantity, Q. Because total revenue equals price (P) times quantity (Q), dividing by quantity leaves us with price.

Source: Price, Marginal revenue, and Average revenue-open; Textbook for Hong Kong.

Question 8.
State the relation between marginal revenue and average revenue. (3)

Question 9.
Define Marginal Revenue. Explain the relationship between Total Revenue and Marginal Revenue. (3)

Question 10.
What are the effects of ‘price-floor’ (minimum price ceiling) on the market of a good? Use diagram. (3)
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

Section – C
(5 Marks Each)

Question 11.
(a) Calculate Standard Deviation and coefficient of variation from the following data:

Marks Below 20 Below 40 Below 60 Below 80 Below 100
Number of Students 8 20 50 70 80

Write short notes on Degree of Correlation.

Question 12.
Construct Index Number of price of 2011 from the following data by:
(i) Laspeyre’s Method
(ii) Paasche’s Method
(iii) Fisher’s Method

Commodity 2001 2011
Price Quantity Price Quantity
A 10 30 12 35
B 9 10 11 15
C 8 15 10 20
D 6 20 7 25

Question 13.
Market for a good is in equilibrium. The supply of good “decreases”. Explain the chain of effects of this change. (5)