KENDRIYA VIDYALAYA BINA
Periodic test 2020-21 Time: 2 hrs.
Class 11th Sub: Economics M.M: 50
All the questions are compulsory.
1. What is meant by budget set? 1
2. Example of microeconomic variable is 1
a) wholesale price index b) national income c) market demand d)
aggregate demand
3. The problem of what to produce relates to 1
a) the choice of technique b) distribution of income c) market value
of goods and services d) choice of good and services
4. Total utility s maximum when marginal utility equals…………. 1
5. Marginal rate of substitution indicates 1
a) Slope of indifference curve. b) Slope of budget line c) Slope of
income line. D) none of these
6. A shift in the budget line when prices are constant is due to 1
a) change in preferences b) change in demand c)change in income
d) change in utility
7. What do you mean by quantity demanded of a commodity? 1
8. In case of inferior codes, law demand fails. True or false. 1
9. In case of price elasticity of demand equal to 0, the shape of demand curve is
a) A horizontal straight line b) a downward sloping curve. c) a
vertical straight line d) none of these (1 mark)
10. Define MRS? 1
11. Differentiate between positive economics and normative economics. 3
12. Explain the central problem ‘how to produce’. 3
13. What are the factors affecting price elasticity of demand? 4
14. A consumer consumes only two goods. Explain the condition of consumer’s
equilibrium using utility analysis. 4
15. Explain the properties of indifference curve. 4
16. Explain with the help of diagrams, the effect of the following changes on the
demand for a commodity. 4
a) A rise in the price of complementary goods b) Fall in the income of
the consumer
17. (i) A consumer consumes 18 units of a good at the price of Rs.5 per unit.
Suppose price elasticity of demand is - 2, at what price he will buy 64 units?
( 3*2=6 marks)
(ii) When price of a commodity X falls by 10%, its demand rises from
150 units to 180 units. Calculate its price elasticity of demand.
18. (i) Explain the law of demand with the help of schedule and diagram. (3*2=6)
(ii) Differentiate between extension in demand and increase in demand.
19. Explain the conditions of consumer equilibrium using indifference curve
analysis. 6
