ECONOMIC PRACTICE PAPER ANSWER KEY
SECTION A – STATISTICS FOR ECONOMICS
MCQs (1 Mark Each)
1. (b) Statement 1 is false and Statement 2 is true.
2. (c) Histogram can be used to locate the median on the graph.
3. (b) (-1)
4. (b) Series of questions should move from specific to general.
5. (d) I, III & IV
6. (c) Chronological classification
7. (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct
explanation of Assertion (A).
8. (d) 61
9. (d) Its magnitude is affected by change of origin and scale.
10. (B) All-India Combined Consumer Price Index
Short Answer Questions (3 Marks Each)
Q11. Calculate Mode for Given Data
• Use Mode = L + [(f₁ - f₀) / (2f₁ - f₀ - f₂)] × h
• Similarly, find the missing value for the mean equation if required.
(Let me know if you want step-by-step calculations.)
Q12. Define the following:
• Consumer: A person who buys goods/services for personal use.
• Producer: A person/company that manufactures or supplies goods and services.
• Service Provider: A business/person providing intangible services like banking,
education, or healthcare.
Q13. Designing a Survey for Popular Hindi Entertainment Channel among Delhi Teenagers
1. Target Population: Teenagers in Delhi.
2. Sampling Method: Stratified random sampling (choosing different age groups
within teenagers).
3. Data Collection:
o Online polls
Questionnaires
o
Personal Interviews
o
4. Reasoning:
o Random sampling ensures unbiased results.
o Multiple data collection methods improve accuracy.
Short Answer Questions (4 Marks Each)
Q14(A) Draw a Frequency Polygon
• Use midpoints of class intervals to plot the graph.
• Join the points to form the polygon.
(For visually impaired students: Differentiate between primary & secondary data
OR individual & discrete series.)
Q15. True or False with Reasons
1. False: The sum of deviations from the mean is zero, not the median.
2. False: Median is not affected by extreme values as much as the mean is.
Long Answer Questions (6 Marks Each)
Q16. Karl Pearson’s Coefficient of Correlation
Formula:
r = \frac{nΣXY - (ΣX)(ΣY)}{\sqrt{[nΣX² - (ΣX)²][nΣY² - (ΣY)²]}}
Q17. Laspeyre’s Price Index Formula
P_L = \frac{Σ (P_1 × Q_0)}{Σ (P_0 × Q_0)} × 100
• = Base Year Price
• = Current Year Price
• = Base Year Quantity
SECTION B – MICROECONOMICS
MCQs (1 Mark Each)
18. (d) Both (a) & (b)
19. (a) Price of complementary goods
20. (c) Statement 1 is true, but Statement 2 is false.
21. (b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).
22. (c) Increase in price of inputs
23. (c) Interdependence among firms
24. (c) It is a sum of implicit and explicit costs.
25. (b) Excess demand, black marketing
26. (a) I, II, III, IV (Correct order of tax effect).
27. (c) C-III (Incorrect pair: Excess demand → Competition among buyers, not sellers).
Short Answer Questions (3 Marks Each)
Q28. Price Elasticity of Supply Calculation
Formula:
E_s = \frac{\%\ ΔQ_s}{\%\ ΔP}
\%\ ΔQ_s = 2 × 10 = 20\%
New Quantity Supplied = 200 + 20% \text{ of } 200 = 240 ] Answer: 240 units
Q29. Difference between Positive and Normative Economics
Aspect Positive Normative
Defination Descriptive, factual Based on opinion& values
Example Indian gdp grew by 7% The government should
decrease taxes
Short Answer Questions (4 Marks Each)
Q30. Relation between Average Revenue and Marginal Revenue
• AR = TR / Q, MR = ΔTR / ΔQ
• Perfect Competition: AR = MR
• Imperfect Competition: MR < AR
Q31. Budget Line Equation for Ashima
• Given: Income = ₹1500, Price of X = ₹15, Price of Y = ₹75
• Equation:
15X + 75Y = 1500
25X + 75Y = 1500
• At original price: → Yes
• At new price: → No
Long Answer Questions (6 Marks Each)
Q32. Impact of Technology & Price Expectations on Market Equilibrium
• Tech Improvement: Supply increases (rightward shift).
• Price Expectation Fall: Demand decreases (leftward shift).
• Result: Price falls, equilibrium quantity depends on shifts.
Q33. Consumer Equilibrium & Marginal Rate of Substitution (MRS)
• If Px rises: Budget line rotates inward, reducing X consumption.
• If MRSxy > Px/Py: Consumer prefers more of X, leading to reallocation.
Q34. Cost Calculation & Profit Maximization
• Find TVC & MC from given table (TV = TC - Fixed Cost).
• Shape of AVC: U-shaped due to diminishing marginal returns.
• Profit Maximization Conditions:
1. MR = MC
2. MC must be rising
By: Bhoomit
Begwani
