CHAPTER 7 : Excess Demand and Deficient Demand NCERT MCQ CLASS 12TH MACRO ECONOMICS CLASS | EDUGROWN

NCERT MCQ ON I Excess Demand and Deficient Demand:

Q1._ is exercised through discussions, letters, and speeches to banks:

a) Moral suasion
b) Selective Credit Controls
c) Margin Requirements
d) Open Market Operations

Ans – a)

Q2.Which of the following is not the reason for excess demand?

a) Fall in the propensity to consume
b) Reduction in taxes
c) Decrease in investments
d) Deficit Financing

Ans – a),

Q3.Increase in cash reserve ratio will lead to:

a) Fall in Aggregate Demand
b) Rise in Aggregate Demand
c) No change in Aggregate Demand
d) Reduces credit creating power of Commercial banks

Ans – a), d)

Q4.The gap by which actual aggregate demand exceeds the aggregate demand required to establish full
employment equilibrium is known as _ .

a) Deficient Demand
b) Deflationary gap
c) Inflationary gap
d) Excess Demand

Ans – c)

Q5.“Change in Government Spending” is a part of:

a) Monetary Policy
b) Fiscal Policy
c) Either a) or b)
d) Neither a) nor b)

Ans – b)

Q6.__ refers to the situation when aggregate supply falls showt of aggregate demand
corresponding to full employment level of output in the economy.

a) Deficient Demand
b) Excess Demand
c) Inflationary Gap
d) Deflationary gap

Ans – b)

Q7.Excess demand leads to:

a) Increase in the level of employment
b) Decrease in the level of employemnt
c) No change in the level of employment
d) Increase in Price level

Ans – c), d)

Q8.Deficient Demand indicates:

a) Under employment equilibrium
b) Over full employment equilibrium
c) Full employment equilibrium
d) None of these

Ans – a)

Q9.Monetary Policy is the policy of _ to control money supply and credit creation in the
economy.

a) Central Government
b) Central Bank
c) Both a) and b)
d) None of these

Ans – b)

Q10.During excess demand, central bank __ the margin.

a) Decreases
b) Increases
c) Removes
d) Does not change

Ans – b)

Q11.If an economy is to control recession like most of the Euro Zone nations, which of the following
can be appropriate:

a) Reducing Repo Rate
b) Reducing CRR
c) Both a) and b)
d) None of a) and b)

Ans – c)

Q12.Aggregate demand can be increased by:

a) increasing bank rate
b) selling government securities by Reserve Bank of India
c) increasing cash reserve ratio
d) none of the above

Ans – d)

Q13.The monetary policy generally targets to ensure _ .

a) Price stability in the economy
b) Employment generation in the country
c) Stable foreign relations
d) Greater tax collections for the government

Ans – a)

Q14.Excess Demand can be controlled through:

a) Monetary Policy
b) Fiscal Policy
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

Q15.An economy is at full employment and AD is greater than AS, what will be the impact on price level
in such an economy?

a) Rise
b) Fall
c) No change
d) Both rise and fall

Ans – a)

Q16.Which of the following can be used to correct inflationary gap under Monetary Policy?

a) Increase in Taxation
b) Reduce availability of credit
c) Cut in Government Expenditure
d) None of these

Ans – b)

Q17.Deficient Demand leads to:

a) Decrease in Planned Output
b) Fall in General Prices
c) Both a) and b)
d) Rise in Employment Level

Ans – c)

Q18.During deflation, it is advisable to:

a) Lower the bank rate and purchase of securities in the open market
b) Increase the bank rate and purchase of securities in the open market
c) Lower the bank rate and sale of securities in the open market
d) Increase the bank rate and sale of securities in the open market

Ans – a)

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CHAPTER 5 : Aggregate Demand and Its Related Concepts NCERT MCQ CLASS 12TH MACRO ECONOMICS CLASS | EDUGROWN

NCERT MCQ ON Aggregate Demand and Its Related Concepts :

Q.1 Consumption function is the functional relationship between _____ and_____

(a) AD and AS

(b) Consumption and AD 

(c) Consumption, National income
(d) National income and personal a income
Ans: C

Q.2 
Classical theory of employment is based on the assumption of

(a) Short run

(b) Full employment
(c) Closed economy
d) Fixed price
Ans: B

Q.3 
Choose the correct alternative

(a) AD curve has a positive slope

(b) AD curve originates from point of origin and has a positive slope

(c) According to Keynes, investment increases with increases in income

(d) Consumption is zero at zero level of income
Ans: A

Q.4 
45° line in the context of equilibrium income is a 

(a)  Line of reference
(b) Line of identity    

(c) Line of equality between AD and AS

(d) Both (a) and (c)

Ans: D

Q.5  Aggregate Demand curve:

(a) Is a diagrammatic presentation of Aggregate Demand schedule.

(b) Shows desired expenditure corresponding to different levels of income in the economy.

(c) Indicates ex-post demand in the economy.

(d) Both (a) and (b)

Ans: D


Q.6 
Consumption in Keynesian Economics depends upon 

(a) Income

(b) Saving

(c) Investment

(d) None of these

Ans: A

Q.7 Constant slope of saving curve indicates that:

(a) Saving curve will be a straight line

(b) Saving function will be non linear.

(c) Saving function will be linear.
(d) Both (a) and (c)

Ans: D

Q.8 
Out of the following which value can be greater than one ?

(a) APC
(b) MPC
(c) APS

(d) MPS
Ans: A

Q.9 
Break-even point is achieved when:

(a) National Income = Consumption
(b) Consumption = Saving

(c) Consumption = Investment
(d) National Income > Consumption
Ans: A


Q.10 
Which of the following fact is correct about MPC ?
(a) Value of MPC varies between O and 1

(b) MPC of poor is more than that of rich

(c) MPC falls with successive increase in income

(d) All of these

Ans: D

Q.11 
Break-even point occurs when:

(a) Y = S
(b) S = 0

(c) Y = C
(d) both (b) and (c)

Ans: D


Q.12 AD Curve starts :

(a) From the origin
(b) Point Below the origin
(c) Point above the origin
(d) None of these

Ans: C

Q.13 I
f investment falls to zero, national income does not fall to zero because of

(a) Autonomous Consumption

(b) Induced investment  

(c) Autonomous Investment

(d) Multiplier

Ans: A

Q.14 45° line in the context of equilibrium GDP is a 

(a) Line of reference
(b) Line of identity
(c) Line of equality between AS and AD
(d) Both (a) & (c)

Ans: D

Q.15 
AD is:

(a) Positively related to Y
(b) Negatively related to Y 

(c) Not related to Y

(d) Always equal to Y
Ans: A

Q.16 
AD curve:

(a) Is a diagrammatic presentation of AD schedule

(b) Shows desired expenditure corresponding to different levels of income in the economy

(c) Indicates ex-post demand in the economy

(d) Both (a) and (b)

Ans: D

Q.17 The slope of S-line is indicated by:

(a) MPC

(b) MPS

(c) 1 – MPC

(d) both (b) and (c)
Ans: D


Q.18 
Frictional unemployment occurs due to:

(a) immobility of labour
(b) lack of production capacity

(c) low wage rate

(d) none of these
Ans: A

Q.19 Structural unemployment occurs due to:

(a) change in technology
(b) when factors (other than labour) are in shortage 

(c) both (a) and (b)
(d) none of these
Ans: C

Q.20 Natural unemployment occurs due to:

(a) shortage of factors of production

(b) time required in adjusting to change in technology 

(c) time required in shifting from one job to the other

(d) both (b) and (c)
Ans: D


Q.21 
Which of the following does not lead to fall in AD ?

(a) Fall in private consumption expenditure
(b) Fall in exports

(c) Fall in import
(d) Fall in government expenditure
Ans: C


Q.22 
Out of the following which value can be greater than one ? 

(a) APC
(b) MPC
(c) APS
(d) MPS
Ans: A

Q.23 
At the break-even point: 

(a) Consumption curve lies above the 45o line

(b) Consumption curve lies below the 45o line

(c) Consumption curve intersects 45o line
(d) None of these
Ans: C


Q.24 
Which of the following statements is not true for consumption function:

(a) Consumption expenditure is never zero even if income level is zero.

(b) Consumption expenditure increases with increase in income.

(c) Consumption expenditure can increase in a greater proportion as compared to increase in income level.
(d) None of the above
Ans: C

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER – 8 Index Numbers |EDUGROWN|

NCERT Most important question:

Question 1.
An index number which accounts for the relative importance of the items is known as
(i) weighted index
(ii) simple aggregative index
(iii) simple average of relatives
Answer:

(i) An index number becomes a weighted index when the relative importance of items is taken care of weighted index is the weighted average of different goods.

Question 2.
In most of the weighted index numbers the weight pertains to
(i) base year
(ii) current year
(iii) both base and current year
Answer:

(i) In general, the base period weight is preferred in calculating the weighted index number but as per Laspeyre’s method it uses the base year quantity as weight, Paache uses current year quantities as weight and Fisher’s Index Method uses both base and current year quantities.

Question 3.
The impact of change in the price of a commodity with little weight in the index will be
(i) small
(ii) large
(iii) uncertain
Answer:

(i) An equal rise in the price of an item with little weight will have lower implications for the overall change in the price ;ndex than that of an Item with more weight.

Question 4.
A consumer price index measures changes in
(i) retail prices
(ii) wholesale prices
(iii) producers’prices
Answer:

(i) Consumer Price Index (CPI), also known as the cost of living index, measures the average change in retail prices which show the most accurate impact of price rise on the cost of living of common people.

Question 5.
The item having the highest weight in consumer price index for industrial workers is
(i) food
(ii) housing
(iii) clothing
Answer:

(i) As weight and Fisher’s index method uses both base and current year quantities.
Food is given around 57% weight in CPI for industrial workers as it constitutes the major proportion of their total consumption.

Question 6.
In general, inflation is calculated by using
(i) wholesale price index
(ii) consumer price index
(iii) producer’s price index
Answer:

(i) The WPI is widely used to measure the rate of inflation. The weekly inflation rate is given by
XtXt1Xt−1×100
where X, and Xt-1 to the WPI for the (t)th and (t- 1)th weeks.

Question 7.
Why do we need an index number?
Answer:

Index number enables us to calculate a single measure of change of a large number of items. The index numbers are needed for the general and specific purpose they are

  • Measurement of Change in the Price Level or the Value of ‘ Money Index number measures the value of money during different periods of time as well as we can use it to know the Impact of the change in the value of money on different sections of society. It can be worked out to correct the inflationary and deflationary gaps in the system.
  • Information of Foreign Trade Index of export and import provides useful information regarding foreign trade which helps in formulating the policies of export and import.
  • Calculating Real Wages CPI are used in calculating the purchasing power of money and real wage as follows
    • Purchasing power of money = 1/Cost of living index
    • Real wage = (Money wage/Cost of living index) × 100
  • Measuring and Comparing Output Index of Industrial Production (IIP) gives us a quantitative figure about the change in production in the industrial sector and thus helps in comparing industrial output in different periods. Similarly, agricultural production index provides us an estimate of the production index provides us an estimate of the production in agricultural sector.
  • Policy Making of Government With the help of index numbers government determines the minatory and fiscal prey and take nassery steps to develop the country.
  • Indicating Stock Prices Sensex and NIFT are index numbers of share prices on BSE and NSE respectively. They serve as a useful guide for investors in the stock market. If the sensex and nifty are rising, investors have positive expectations about the future performance of the economy and it is an appropriate time for investment.

Question 8.
What are the desirable properties of the base period?
Answer
:
Base period should have the following properties

  • The base year should be a normal period and periods in which extraordinary events have occurred should not be taken as base periods as they are not appropriate for general comparisons.
  • Extreme values should not be selected as base period.
  • The period should not be too far in the past as comparison with current period cannot be done with such base year as policies, economic and social conditions change with time.
  • Base period should be updated periodically.

Question 9.
Why is it essential to have different CPI for different categories of consumers?
Answer:

The Consumer Price Index (CPI) in India is calculated for different categories as under

  • CPI for industrial workers.
  • CPI for urban non-manual employees.
  • CPI for agricultural labourers.

The reason behind calculation of three different CPIs is that the consumption pattern of the three groups (i.e., industrial workers, urban non-manual workers and agricultural labourers) differs significantly from each other. Therefore, to assess the impact of the price change on the cost of living of the three groups, component items included in the index need to be given different weights for each of the group. This necessitates the calculation of different CPI for different categories of consumers.

Question 10.
What does a consumer price index for industrial workers measure?
Answer:

Consumer price index for industrial workers measures the average change in retail prices of a basket of commodities which an industrial worker generally consumes. Consumer price index for industrial workers is increasingly being considered the appropriate indicator of general inflation, which shows the most accurate impact of price rise on the cost of living of common people.

The items included in CPI (Consumer Price Index) for industrial workers are food, pan, supari, tobacco, fuel and lighting, housing, colthing, and miscellaneous expenses with food being accorded the highest weight. This implies that the food price changes have a significant impact on the CPI.

Question 11.
What is the difference between a price index and a quantity index?
Answer:

The difference between a price index and a quantity index is as follows

  • Price index numbers measure and allow for comparison of the prices of certain goods while quantity index number measure the changes in the physical volume of production, construction or employment.
  • Price index numbers are more widely used as compared to quantity index numbers.
  • Price index is known as unweighted index number while quantity index number is known was weighted index numbers.

Question 12.
Is the change in any price reflected in a price index number?
Answer:

No, the change in any price is not reflected in a price index number. Price index numbers measure and permit comparison of the prices of certain goods included in the basket being used to compare prices in the base period with prices in the current period. Moreover, an equal rise in the price of an item with large weight and that of an item with low weight will have different implications for the overall change in the price index.

Question 13.
Can the CPI number for urban non-manual emplyees represent the changes in the cost of living of the President of India?
Answer:

The CPI for the urban non-manual employees cannot represent the changes in the cost of living of the President of India. This is because the consumption basket of an average non-manual employee does not consist of the items that would be a part of the consumption basket of the President of India.

Question 14.
The monthly per capita expenditure incurred by workers for an industrial centre during 1980 and 2005 on the following items are given below. The weights of these items are 75, 10, 5, 6 and 4 respectively.
Prepare a weghted index number for cost of living for 2005 with 1980 as the base.

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q14
Answer:
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q14.1

Question 15.
Read the following table carefully and give your comments.
Answer:

Index of Industrial Production Base 1993-94
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q15
The following conclusions can be made by analysing the above table

  • Manufacturing industry has the highest weight of 79.58% in Index of Industrial Production (IIP) while mining and quarrying and electricity industries account for 10.73% and 10.69% respectively.
  • Manufacturing Industry has registered the highest growth among all industrial sectors in both the years 1996-97 and 2003-04.
  • Mining and quarrying has registered the lowest growth rate in both the years.
  • The General Index shows that industrial increased by 30.8% in 1996.-97 as compared to 1993-94 and by 89% in 2003-04.

Question 16.
Try to list the important items of consumption in your family.
Answer:

(This is a general example. You can use the actual consumption items in your family).
The following items constitute the total consumption needs for a family

  • Food
  • Clothing
  • House-Rent/EMI of Housing loan
  • Education
  • Electricity
  • Entertainment and recreation
  • Miscellaneous expenses

Question 17.
If the salary of a person in the base year is ? 4,000 per annum and the current year salary is ? 6,000 by how much should his salary rise to maintanin the same standard of living if the CPI is 400?
Answer:

Base CPI = ₹ 100
Current CPI = ₹400
Base Year Salary = ₹ 4,000
Current Year Salary = ₹ 6,000
When Base CPI is ₹100, then the salary is = ₹ 4,000
Current salary equivalent to base year salary = (Base year salary/100) × CPI of current year
When Current CPI is ₹ 400, then the salary should be
= 4,000100×400 = ₹ 16,000 100
Thus, his salary should be X 16,000 to maintain his purchasing power. Therefore, in the current year his salary should increase by ₹ 16,000 – ₹ 6,000 = ₹ 10,000 so as to maintain the same level of living in the current year as that of the base year.

Question 18.
The consumer price index for June, 2005 was 125. The food index was 120 and that of other items
What is the percentage of the total weight given to food?
Answer:

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q18
Let the total weight = 100
Wdenotes weight of food
W2 denotes weight of other items
So,
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q18.1
Multiplying both sides of Eq. (i) by 135 and subtracting Eq. (ii) from (i) we get
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q18.2
So, W1 = 100015 = 66.67
Substituting the value of in the Eq. (i), we get
W1 + W2 = 100
or 6667 + W2 = 100
W2 = 33.33
Therefore, percentage of total weight given to food is 66.67% and other items 33.33%.

Question 19.
An enquiry into the budgets of the middle class families in a certain city gave the following information

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q19
What is the cost of living index of 2004 as compared with 1995?
Answer:
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q19.1
Cost of Living Index = 134.50
Thus, the price rose by 34.50% during 1995 and 2004.

Question 20.
Record the daily expenditure quantities bought and prices paid per unit of the daily purchases of your family for two weeks. How has the price change affected your family?
Answer:

This is a practical exercise. Record the daily expenditure, quantities bought and prices paid per unit of the daily purchases of your family for two weeks and try to analyse if quantities purchased decrease with rise in price of the respective items and also note if the percentage change in quantity brought about by a percentage change in price differ for different types of items.

Question 21.
Given the following data

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21
Source Economic Survey, Government of India 2004-2005
(i) Calculate the inflation rates using different index numbers.
(ii) Comment on the relative values of the index numbers.
(iii) Are they comparable?
Answer:
(i) (a) Inflation using CPI of Industrial Workers
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.1

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.2
(b) Inflation using CPI of Non-maunal Employees
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.3
(c) Inflation using CPI of Agricultural Labourers
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.4

Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.5
(d) Inflation using WPI
Statistics for Economics Class 11 NCERT Solutions Chapter 8 Index Numbers Q21.6
(ii) The inflation rate calculated using CPI industrial worker with the base year 1982 is the highest and inflation rate calculated using WPI with the base year 1993-94 is the least.
(iii) No the index number are not comparable because of the following reasons

  • Base periods for CPI of industrial workers, urban non-manual workers, agricultural labourers and WPI are different.
  • Commodities and their weightage in different index number may be different.
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –7Correlation |EDUGROWN|

NCERT Most important question:

Question 1.
The unit of correlation coefficient between height in feet and weight in kgs is
(a) kg/feet
(b) percentage
(c) non-existent
Answer:

(c) Correlation coefficient (r) has no unit. It is a pure number. It meansss units of measurement are not part of r.

Question 2.
The range of simple correlation coefficient is
(a) 0 to infinity
(b) minus one to plus one
(c) minus infinity to infinity
Answer:

(b) The value of the correlation coefficient lies between minus one and plus one, -1 ≤ r ≤ 1. If the value of r is outside this range it indicates error in calculation.

Question 3.
If rXY is positive the relation between X and Y is of the type
(a) when Y increases X increases
(b) when Y decreases X increases
(c) when Y increases X does not change
Answer:
(a) If r is positive the two variables move in the same direction. e.g., when the price of coffee rises, the demand for tea also rises as coffee is a substitute of tea. Therefore, the r between price of coffee and demand for tea will be positive

Question 4.
If rXY = 0, the variable X and Y are
(a) linearly related
(b) not linearly related
(c) independent
Answer:

(b) If rXY = 0, it means the two variables are uncorrelated and there is no linear relation between them. However, other types of relation may be there and they may not be independent.

Question 5.
Of the following three measures which can measure any type of relationship?
(a) Karl Pearson’s coefficient of correlation
(b) Spearman’s rank correlation
(c) Scatter diagram
Answer:

(c) The scatter diagram gives a visual presentation of the relationship and is not confined to linear relations. Karl Pearson’s coefficient of correlation and Spearman’s rank correlation are strictly the measures of linear relationship.

Question 6.
If precisely measured data are available the simple correlation coefficient is
(a) more accurate than rank correlation coefficient
(b) less accurate than rank correlation coefficient
(c) as accurate as the rank correlation coefficient
Answer:

(a) Rank correlation should be used only when the variables cannot be measured precisely, generally it is not as accurate as the simple correlation coefficient as all the information concerning the data is not utilised in this.

Question 7.
Why is r preferred to covariance as a measure of association?
Answer:

Both, correlation coefficient and covariance measure the degree of linear relationship between two variables, but correlation coefficient is generally preferred to covariance due to the following reasons

  • The correlation coefficient (r) has no unit.
  • The correlation coefficient is independent of origin as well as scale.

Question 8.
Can r lie outside the -1 and 1 range depending on the type of data?
Answer:

No the value of the correlation coefficient lies between minus one and plus one, -1 ≤ r ≤ 1. If the value of r is outside this range in any type of data, it indicates error in calculation.

Question 9.
Does correlation imply causation?
Answer:

No, correlation measures do not imply causation. Correlation measures co-variation and not causation.
Correlation does not imply cause and effect relation. The knowledge of correlation only gives us an idea of the direction and intensity of change in a variable when the correlated variable changes. The presence of correlation between two variables X and Y simply means that when the value of one variable is found to change in one direction, the value of the other variable is found to change either in the same direction (i.epositive change) or in the opposite direction (i.e., negative change), in a definite way.

Question 10.
When is rank correlation more precise than simple correlation coefficient?
Answer:

Rank correlation is more precise than simple correlation coefficient in the following situations

  • When the Measurements of the Variables are Suspect e.g., in a remote village where measuring rods or weighing scales are not available, height and weight of people cannot be measured precisely but the people can be easily ranked in terms of height and weight.
  • When Data is Qualitative It is difficult to quantify qualities such as fairness, honesty etc. Ranking may be a better alternative to quantification of qualities.
  • When Data has Extreme Values Sometimes the correlation coefficient between two variables with extreme values may be quite different from the coefficient without the extreme values. Under these circumstances rank correlation provides a better alternative to simple correlation.

Question 11.
Does zero correlation mean independence?
Answer:

No, zero correlation does not mean independence. If there is zero correlation (rXY = 0), it means the two variables are uncorrelated and there is no linear relation between them. However, other types of relation may be there and they may not be independent.

Question 12.
Can simple correlation coefficient measure any type of relationship?
Answer:

No, simple correlation coefficient can measure only linear relationship.

Question 13.
List some variables where accurate measurement is difficult.
Answer:

Accurate measurement is difficult in case of

  • Qualitative variables such as beauty, intelligence, honesty, etc.
  • It is also difficult to measure subjective variables such as poverty, development, etc which are interpreted differently by different people.

Question 14.
Interpret the values of r as 1, -1 and 0.
Answer:

  • If r = 0 the two variables are uncorrelated. There is no linear relation between them. However, other types of relation may be there and hence the variables may not be independent.
  •  If r= 1 the correlation is perfectly positive. The relation between them is exact in the sense that if one increases, the other also increases in the same proportion and if one decreases, the other also decreases in the same proportion.
  • If r = -1 the correlation is perfectly negative. The relation between them is exact in the sense that if one increases, the other decreases in the same proportion and if one decreases, the other increases in the same proportion.

Question 15.
Why does rank correlation coefficient differ from Pearsonian correlation coefficient?
Answer:

Rank correlation coefficient differs from Pearsonian correlation coefficient in the following ways

  • Rank correlation coefficient is generally lower or equal to Karl Pearson’s coefficient.
  • Rank correlation coefficient is preferred to measure the correlation between qualitative variables as these variables cannot be measured precisely.
  • The rank correlation coefficient uses ranks instead of the full set of observations that leads to some loss of information.
  • If extreme values are present in the data, then the rank correlation coefficient is more precise and reliable.

Question 16.
Calculate the correlation coefficient between the heights of fathers in inches (X) and their sons (Y).

Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q16
Answer:
Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q16.1
Note Answer: printed in NCERT is incorrect.

Question 17.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q17
Answer:
Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q17.1

Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q17.2
As the value of r is zero, so there is no linear correlation between X and Y.

Question 18.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q18
Solution
Statistics for Economics Class 11 NCERT Solutions Chapter 7 Correlation Q18.1
As the correlation coefficient between the two variables is + 1, so the two variables are perfectly positive correlated

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –6 Measures of Dispersion |EDUGROWN|

NCERT Most important question:

Question 1

Define dispersion.

Answer: Dispersion is the measure of the extent to which different items tend to dispense away from the central tendency.

Question 2

What is the coefficient of dispersion?

Answer: The coefficient of dispersion shows different data percentage or relative value. The coefficient of dispersion is known as a relative measure of dispersion.

Question 3

Define range.

Answer: Range is the variance between the lowest and highest value in a series. Therefore, Range = Highest value in the series – Lowest value in the series.

Question 4

Explain the interquartile range.

Answer: In a series, the difference between the first Quartile (Q1) and third Quartile (Q3) is known as the interquartile range.

Question 5

What is the quartile deviation?

Answer: Half of the interquartile range is Quartile deviation. It can also be mentioned as semi-inter quartile range.

Question 6

What is the coefficient of quartile deviation formula?

Answer:  For calculating the coefficient of quartile deviation, the formula applied is.

Q3−Q1/ Q3+Q1

Question 7

Define mean deviation.

Answer: A mathematics average of the deviations of all the principles taken from some average value (mean, median, mode) of the series, ignoring signs (+ or -) of the deviation is mean deviation.

Question 8

What is standard deviation?

Answer: The square root of the arithmetic mean of the squared deviations of the items from their mean value.

Question 9

What is a Lorenz curve?

Answer: Lorenz curve is a curve that shows the actual distribution deviation (of income or wealth) from the line exhibiting equal distribution.

Question 10

Define variance.

Answer: Variance is another measure of dispersion. Variance is the square of the standard deviation.

Question 11.
A measure of dispersion is a good supplement to the central value in understanding a frequency distribution. Comment.
Answer:

Dispersion is the extent to which values in a distribution differ from the avarage of the distribution. Knowledge of only average is insufficient as it does not reflect the quantum of variation in values.

Measures of dispersion enhance the understanding of a distribution considerably by providing information about how much the actual value of items in a series deviate from the central value, e.g., per capita income gives only the average income but a measure of dispersion can tell you about income inequalities, thereby improving the understanding of the relative living standards of different sections of the society. Through value of dispersion one can better understand the distribution.

Thus a measure of dispersion is a good supplement to the central value in understanding a frequency distribution.

Question 12.
Which measure of dispersion is the best and how?
Answer:

Standard Deviation is considered to be the best measure of dispersion and is therefore the most widely used measure of dispersion.

  • It is based on all values and thus provides information about the complete series. Because of this reason, a change in even one value affects the value of standard deviation.
  • It is independent of origin but not of scale.
  • It is us’eful in advanced statistical calculations like comparison of variability in two data sets.
  • It can be used in testing of hypothesis.
  • It is capable of further algebraic treatment.

Question 13.
Some measures of dispersion depend upon the spread of values whereas some calculate the variation of values from a central value. Do you agree?
Answer:

Yes, it is true that some measures of dispersion depend upon the spread of values, whereas some calculate the variation of values from the central value. Range and Quartile Deviation measure the dispersion by calculating the spread within which the value lie. Mean Deviation and Standard Deviation calculate the extent to which the values differ from the average or the central value.

Question 14.
In town, 25% of the persons earned more than ₹ 45,000 whereas 75% earned more than 18,000. Calculate the absolute and relative values of dispersion.
Answer:

25% of the persons earned more than ₹ 45,000. This implies that upper quartile Q3 = 45,000 75% earned more than 18,000. This implies that lower quartile Q1 =18,000
Absolute Measure of Dispersion = Q3 – Q1 = 45,000 – 18,000 = 27,000
Relative Measure of Dispersion
Co-efficient of Quartile Deviation
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q4

Question 15.
The yield of wheat and rice per acre for 10 districts of a state is as under

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5
Calculate for each crop,
(i) Range
(ii) QD
(iii) Mean’Deviation about Mean
(iv) Mean Deviation about Median
(v) Standard Deviation
(vi) Which crop has greater variation?
(vii) Compare the value of different measures for each crop.
Answer:
(i) Range
(a) Wheat Highest value of distribution (H) = 25
Lowest value of distribution (L) = 9
Range = H – L = 25 – 9 = 16
(b) Rice Highest value of distribution (H) = 34
Lowest value of distribution (L)=12
Range = H – L = 34 – 12 = 22
(ii) Quartile Deviation
(a) Wheat Arranging the production of wheat in increasing order 9, 10, 10, 12, 15, 16, 18, 19, 21, 25
Q1 = N+14th item = 10+14th item = 114th item
= 2.75th item
= Size of 2nd item + 0.75 (size of 3rd item – size of 2nd item)
= 10 + 0.75(10 – 10)
= 10 + 0.75 × 0
= 10
Q3 = 3(N+1)4th item = 3(10+1)4th item
= 334th item = 8.25th
= Size of 8th item + 0.25 (size of 9th item – size of 8th item)
= 19 + 0.25(21 – 19)
= 19 + 0.25 × 2
= 19 + 0.50 = 19.50
Quartile Deviation = Q3−Q12=19.50−102=9.502 = 4.75
(b) Rice Arranging the data of production of rice
12, 12, 12, 15, 18, 18, 22, 23, 29, 34 item
Q1 = N+14th item = 10+14th item
= 2.75 th item
= Size of 2nd item + 0.75 (size of 3rd item – size of 2nd item)
= 12 + 0.75(12 – 12) = 12 + 0.75 × 0
= 12
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.1
= 8.25th item
= Size of 8th item + 0.25 (size of 9th item – size of 8th item)
= 23 + 0.25(29 – 23)
= 23 + 0.25 × 6
= 23 + 1.5
= 24.5
Quartile Deviation = Q3−Q12=24.5−122=12.502 = 6.25

(iii) Mean Deviation about Mean
(a) Wheat
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.2

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.3

(b) Rice
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.4

(iv) Mean Deviation about Median
(a) Wheat
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.5

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.6

(b) Rice
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.7

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.8

(v) Standard Deviation
(a) Wheat
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.9

(b) Rice
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.10

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q5.11

(vi) Coefficient of Variation
(a) Wheat
CV =σX¯¯¯¯¯×100=5.0415.5×100 = 32.51
(b) Rice
CV =σX×100=7.1619.5×100 = 36.71
Rice crop has greater variation as the coefficient of variation is higher for rice as compared to that of wheat.
(vii) Rice crop has higher Range, Quartile Deviation, Mean Deviation about Mean, Mean Deviation about Median, Standard Deviation and Coefficient of Variation.

Question 16.
A batsman is to be selected for a cricket team. The choice is between X and Y on the basis of their scores in five previous scores which are
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q7
Which batsman should be selected if we want,
(i) a higher run-getter, or
(ii) a more reliable batsman in the team?
Answer:

Batsman X
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q7.1

Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q7.2
(i) Average of Batsman X is higher than that of Batsman Y, so he should be selected if we want a high scorer.
(ii) The Batsman Y is more reliable than Batsman X. This is because the coefficient of variation of Batsman X is higher than that of Batsman Y.

Question 17.
To check the quality of two brands of light bulbs, their life in burning hours was estimated as under for 100 bulbs of each brand.
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q8
(i) Which brand gives higher life?
(ii) Which brand is more dependable?

Answer:
For Brand A
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q8.1
For Brand B
Statistics for Economics Class 11 NCERT Solutions Chapter 6 Measures of Dispersion Q8.2

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –5 Measures of Central Tendency |EDUGROWN|

NCERT Most important question:

Q1.Define median.

Answer: Median is a value located centrally of a series in such a way that half of the value of the series is above it and the other half is below.

Q2.What is the mode?

Answer: The mode is a value that frequently occurs in the series. Which means the modal value has the highest frequency in the series.

Q3.Define the partition value.

Answer: The value that divides the series into more than two parts is known as a partition value.

Q4.Explain quartile.

Answer: The end value of the statistical series when divided into four parts is known as quartile.

Q5.What is positional average?

Answer: Positional average are those averages whose value is worked out on the basis of their position in the statistical series.

Q6.Define the central tendency.

Answer: All the methods of statistical analysis by which the average of the statistical series are analysed is known as a central tendency.

Q7.What are the purpose of average is the statistical method?

Answer: The purpose of the average is the statistical method are

  • Brief description
  • Comparison
  • Formulation of policies
  • Statistical analysis
  • One value of all

Q8.What are the different kinds of statistical average?

Answer: The different kinds of statistical average are.

  • Mathematical average
  • Positional average

Q9.What are the two methods that can calculate the simple arithmetic mean in case of individual series?

Answer: The two methods that can calculate the simple arithmetic mean in the case of individual series are.

  • Direct method
  • Short-cut method

Q10.What are the methods calculating simple arithmetic mean?

Answer: The methods of calculating simple arithmetic mean are.

  • Individual series
  • Discrete series
  • Frequency distribution

Stay tuned to CoolGyan’S for more CBSE Class 11 Statistics important questions, question papers, sample papers, syllabus and Commerce notifications.

Q11. If the arithmetic mean of the data given below is 28, find (a) the missing frequency, and (b) the median of the series:

Profit per retail shop (in Rs)0-1010-2020-3030-4040-5050-60
Number of retail shops121827176

Answer
(a) Let the missing frequency be x
Arithmetic mean = 28 (given)

Profit per retail shop (in Rs)
Class Interval
No. of retail shops
Frequency (f)
Mid Value
(m)
fm
0-1012560
10-201815270
20-302725675
30-40x3535x
40-501745765
50-60655330
 Σf = 80 + xΣfx = 2100 + 35x

Mean = Σfxf
⇒ 28 = 2100 + 35x/80 + x⇒ 2240 + 28x = 2100 + 35
⇒ 2240 – 2100 = 35x – 25x⇒ 140 = 7x⇒  x = 140/7 = 20Missing frequency = 20
(b)

Class IntervalFrequency (f)Cumulative frequency
(CF)
0-101212
10-201830
20-302757
30-40x77
40-501794
50-606100
Total Σf = 100

Median = Size of (N/2)th item
             = 100/2 = 50th item
It lies in class 20-30.

Q12. The following table gives the daily income of ten workers in a factory. Find the arithmetic mean.

WorkersABCDEFGHIJ
Daily Income (in Rs) 120150180200250300220350370260

Answer

WorkersDaily Income (in Rs)X
A120
B150
C180
D200
E250
F300
G220
H350
I370
J260
Total ΣX = 2400

N = 10
Arithmetic Mean = ΣX/N
                            = 2400/10
                            = 240
Arithmetic Mean = 240

Q13. Following information pertains to the daily income of 150 families. Calculate the arithmetic mean.

Income (in Rs)Number of families
More than 75150
More than 85140
More than 95115
More than 10595
More than 11570
More than 12560
More than 13540
More than 14525

Answer

IncomeNo. of families
Frequency (f)
Mid Class

urn:uuid:1076b3c7-1f66-96c0-b5d2-96c01f661076(x)fx75-85108080085-952590225095-105201002000105-115251102750115-125101201200125-135201302600 135-145 151402100 145-155 251503750
150
17450 Arithmetic Mean = Σfxf
                            = 17450/150
                            = 116.33

Q14. The size of land holdings of 380 families in a village is given below. Find the median size of land holdings.

Size of Land Holdings (in acres)Less than 100100-200200-300300-400400 and above
Number of families40891486439

Answer

Size of Land Holdings
       Class Interval
Number of families(f)Cumulative frequency
(CF)
0-1004040
100-20089129
200-300148277
300-40064341
400-50039380
Total Σf = 380

Σf = N = 380
Median = Size of (N/2)th item
             = 380/2 = 190th item
It lies in class 200-300.

Median size of land holdings = 241.22 acres

Q15. The following series relates to the daily income of workers employed in a firm. Compute (a) highest income of lowest 50% workers (b) minimum income earned by the top 25% workers and (c) maximum income earned by lowest 25% workers.

Daily Income (in Rs)10-1415-1920-2425-2930-3435-39
Number of workers5101520105

(Hint: Compute median, lower quartile and upper quartile.)

Answer

Daily Income (in Rs)
      Class Interval
No of workers(f)Cumulative frequency
(CF)
9.5-14.555
14.5-19.51015
19.5-24.51530
24.5-29.52050
29.5-34.51060
34.5-39.5565
Total Σf = 65

(a) Σf = N = 65
Median = Size of (N/2)th item
             = 65/2 = 32.5th item
It lies in class 24.5-29.5.

Highest income of lowest 50% workers = Rs 25.12

(b) First, we need to find Q1
Class interval of Q1 = (N/4)th items
                                 = (65/4)th items = 16.25th item
It lies in class 19.5-24.5.

Minimum income earned by the top 25% workers = Rs 19.92

(c) First, we need to find Q3
Class interval of Q= 3 (N/4)th items
                                 = 3 (65/4)th items = 3 × 16.25th item
                                 = 48.75th item
It lies in class 24.5-29.5.

Maximum income earned by lowest 25% workers = Rs 29.19

Q16. The following table gives production yield in kg. per hectare of wheat of 150 farms in a village. Calculate the mean, median and mode values.

Production yield (kg. per hectare)50-5353-5656-5959-6262-6565-6868-7171-7474-77
Number of workers381430362816105

Answer

Production Yield
 (kg. per hectare)
No. of farms
Frequency (f)
Mid Class
(x)
fxCumulative frequency
(CF)
50-53351.5154.53
53-56854.543611
56-591457.580525
59-623060.5181555
62-653663.5228691
65-682866.51862119
68-711669.51112135
71-741072.5725145
74-77575.5377.5150
Σf = 150Σfx = 9573

Mean = Σfxf  = 9573/150 = 63.82 hectare

Modal Class = 62-65

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –4 Presentation of Data |EDUGROWN|

NCERT Most important question:

Q1.Define presentation of data.

Answer: The presentation of data is a representation of data in an attractively and transparent manner that everybody understands and analyses.

Q2.What is tabulation?

Answer: Tabulation means presenting data in tabular form.

Q3.Define table.

Answer: Table refers to the systematic representation of data with rows and columns.

Q4.Explain a simple table.

Answer: A simple table only displays one characteristic of the data.

Q5.What is a complex table?

Answer: It is a table that shows more than one characteristic of the data.

Q6.Define a derived table.

Answer: A derived data is something where the information is not displayed according to the way it was collected. It is first into rations or percentages and then presented.

Q7.What are the two principal parts of a table?

Answer: The two principal parts of a table are (i) Table number and (ii) Title

Q8.What are the different kinds of a table?

Answer: Tables can be classified into three parts. (i) Purpose (ii) Originality, and (iii) Construction

Q9.What are the two types of complex table?

Answer: The two types of a complex table are (i) Double or two-way table and (ii) Manifold table

Q10.What are a different forms of presentation of data?

Answer: The different form of presentation of data are (i) Textual and descriptive presentation (ii) Tabular presentation, and (iii) Diagrammatic presentation

Q11. What kinds of diagrams are more effective in representing the following?
(i) Monthly rainfall in a year
(ii) Composition of the population of Delhi by religion
(iii) Components of cost in a factory

Answer
(i) Monthly rainfall in a year – simple bar diagram as only one variable i.e. monthly rainfall is to be present and compared visually.
(ii) Composition of the population of Delhi by religion – Simple bar diagram Plotting different religion on the x-axis and the number of people on the y-axis, one can easily compare the number of the population religion-wise.
(iii) Components of cost in a factory – Pie chart as entire circle represents the total cost and various components of costsare shown by different portions of the circle.


Q12. Suppose you want to emphasise the increase in the share of urban non-workers and lower level of urbanisation in India as shown in Example 4.2. How would you do it in the tabular form?
Answer

Urban non workersRural Non WorkersTotal Non workers
19 crores42 crores62 crores

The number of rural non-workers is greater than urban non-workers. The higher number of rural non-workers indicates lower level of urbanisation in India according to 2001 Census data.

Q13. How does the procedure of drawing a histogram differ when class intervals are unequal in comparison to equal class intervals in a frequency table?
Answer
When the class intervals are equal then by normal method we can make histogram which has equal width of rectangle. When the class intervals are unequal, heights of rectangles are to be adjusted to yield comparable measurements by using frequency density (class frequency divided by width of the class interval) instead of absolute frequency.

Q14. The Indian Sugar Mills Association reported that, ‘Sugar production during the first fortnight of December 2001 was about 3,87,000 tonnes, as against 3,78,000 tonnes during the same fortnight last year (2000). The off-take of sugar from factories during the first fortnight of December 2001 was 2,83,000 tonnes for internal consumption and 41,000 tonnes for exports as against 1,54,000 tonnes for internal consumption and nil for exports during the same fortnight last season.’
(i) Present the data in tabular form.
(ii) Suppose you were to present these data in diagrammatic form which of the diagrams would you use and why?
(iii) Present these data diagrammatically.

Answer

(i)

Sugar Production in India
DateTotal Production (tonnes)Internal Consumption (tonnes)Export of sugar (tonnes)
December, 20003,78,0001,54,000
December, 20003,27,0002,83,00041,000

(ii) To present these data in diagrammatic form we can use multiple bar diagram because these are effective in comparing two or more sets of data.

(iii)

Q15. The following table shows the estimated sectoral real growth rates (percentage change over the previous year) in GDP at factor cost.

Question No 15 Statistics of economics

Represent the data as multiple time series graphs.
Answer

Sectoral Growth Rate Statistics for Economics
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –3 Organisation of Data | EDUGROWN |

NCERT Most important question:

Q1. What is a variable? Distinguish between a discrete and a continuous variable.

Answer

A characteristic, number, or quantity whose value changes overtime is called variable. For example: weight, income etc. It can be either discrete or continuous.

Discrete VariableContinuous Variable
• A variable that takes only whole number as its value is called discrete variable.

• These variables increase in jumps or in complete numbers.

• For example- Number of people in a family, number of students in a class, etc.
• A variable that can take any value, within a reasonable limit is called a continuous variable.

• These variables assume a range of values or increase in fractions and not in jumps.

• For example- age, height, weight, etc.

Q2. Explain the ‘exclusive’ and ‘inclusive’ methods used in classification of data.
Answer

Exclusive method: The classes, by this method, are formed in such a way that the upper class limit of one class equals the lower class limit of the next class for example, 0-10, 10-20, and so on . Thus, the continuity of the data is maintained. The upper class limit is excluded but the lower class limit of a class is included in the interval. This method is most appropriate for data of continuous variables.

Inclusive method: This method does not exclude the upper class limit in a class interval. It includes the upper class in a class. Thus both class limits are parts of the class interval for example, 1-5, 6-10, 11-15 and so on. The interval 1-5 includes both the limits i.e. 1 and 5.

Q3. Use the data in Table 3.2 that relate to monthly household expenditure (in Rs) on food of 50 households and obtain the range of monthly household expenditure on food.

Table 3.2

(i) Obtain the range of monthly household expenditure on food.

Answer

Range = Highest Value – Lowest Value
Highest Value = 5090
Lowest Value = 1007
So, Range = 5090 – 1007 = 4083


Q4.Divide the range into appropriate number of class intervals and obtain the frequency distribution of expenditure.
Answer

Statistics Table 1 Ch 3 Organisation of data

Q5. Find the number of households whose monthly expenditure on food is(a) less than Rs 2000(b) more than Rs 3000
c) between Rs 1500 and Rs 2500

Answer

(a) Number of households whose monthly expenditure on food is less than Rs 2000
= 20 + 13 = 33

(b) Number of households whose monthly expenditure on food is more than Rs 3000
= 2+1+2+0+1 = 6
(c) Number of households whose monthly expenditure on food is between Rs 1500 and Rs 2500
= 13 + 6 = 19
Page No: 39

Q6. In a city 45 families were surveyed for the number of domestic appliances they used. Prepare a frequency array based on their replies as recorded below.

Answer

No. of Domestic AppliancesNo. of Households
01
17
215
312
45
52
62
71
Total45

Q7.. What is ‘loss of information’ in classified data?

Answer

The classified data summarises the raw data making it concise and comprehensible, it does not show the details that are found in raw data. Once the data are grouped into classes, an individual observation has no significance in further statistical calculations. Further, the statistical calculations are based on the values of the class marks, ignoring the exact observations of the data leading to the problem of loss of information.

Q8. Do you agree that classified data is better than raw data?

Answer

The raw data are usually large an fragmented, it is very difficult to draw any meaningful conclusion from them. Classification makes the raw data comprehensible by surprising them into groups. When facts of similar characteristics are placed in the same class, it enables one to locate them easily, make comparison, and draw inferences without any difficulty. Therefore, classified data  is better than raw data

Q9. Distinguish between Univariate and Bivariate frequency distribution.

Answer

The frequency distribution of a single variable is called a Univariate Distribution. Income of people, marks scored by students, etc. are examples of Univariate Distribution.

The frequency distribution of two variables is called Bivariate distribution. Sales and advertisement expenditure, weight and height of individuals, etc. are examples of Bivariate distribution.

Q10. Prepare a frequency distribution by inclusive method taking class interval of 7 from the following data:

Question No 10

Answer

Statistics Table 2 Ch 3 Organisation of data
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –2 Collection of Data | EDUGROWN |

NCERT Most important question:

Q1. You want to research on the popularity of Vegetable Atta Noodles among children. Design a suitable questionnaire for collecting this information.

Answer

QUESTIONNAIRE

Name: ……………………
Age: ……….
Sex:  ☐ Male ☐ Female

1. Do you eat Noodles?
☐ Yes ☐ No

2. Do you like Vegetable Atta Noodles more than other snacks?
☐ Yes ☐ No

3. How many packets do you consume in one month?
☐ Less than 2 ☐ Less than 5 ☐ More than 5

4. Do you prefer Atta noodles over Maida noodles?
☐ Yes ☐ No

5. Which vegetable according to you should be added in present Atta noodles?
………………………………………………………….

6. When do you prefer to have Vegetable Atta Noodles?
☐ Breakfast ☐ Lunch  ☐ Evening Snacks ☐ Dinner

7. Do your parents accompany you while having noodles?
☐ Yes ☐ No

Q2. In a village of 200 farms, a study was conducted to find the cropping pattern. Out of the 50 farms surveyed, 50% grew only wheat. Identify the population and the sample here.

Answer
Population or the Universe in statistics means totality of the items under study. So, the population here is 200 farms.Sample refers to a group or section of the population from which information is to be obtained. Out of 200 farms, only 50 farms are selected for survey. Therefore, the sample population is 50 farms.

Q3. Give two examples each of sample, population and variable.

Answer

Example 1: A study was conducted to know the average income of people in a village. The total number of person was 750. Out of these, 70 villagers selected and their average income was recorded. So, in this example:
(i) Population is the number of total villagers which is equal to 750.
(ii) Sample is the 70 villagers whose average income was recorded.
(iii) Variable under study is the income of the villagers

Example 2: In order to study the to record the level of sugar in the blood, blood sample of 1000 people was taken from 10,000 people. So, in this example
(i) Population is the total number of people i.e., 10,000.
(ii) Sample is the 1000 people.
(iii) Variable is the sugar level.

Q4. Which of the following methods give better results and why?
(a) Census
(b) Sample

Answer

Sample Method gives better results than the Census Method as:
→ Less time consuming: It requires a lot of time to conduct census as evry record have to obtain while sample can be done in lesser time. Economically feasible: The cost of approaching each individual unit for interrogation and collection of data is comparatively lower due to small size of sample.→ Accuracy- Although census method provides more accurate and reliable results as compared to the sample method but in the sample method the errors can be easily located and rectified in the sampling methods due to the smaller number of items.
→ Lesser Non-sampling Errors- The probability of Non-sampling Errors is also low as the sample size is smaller as compared to that of the Census Method.

Q5. Which of the following errors is more serious and why?
(a) Sampling error
(b) Non-Sampling error

Answer

Non-sampling errors are more serious than sampling errors because a sampling error can be minimised by taking a larger sample. It is difficult to minimise non-sampling error, even by taking a large sample as it use of faulty means of collection of data.

Q6. Suppose there are 10 students in your class. You want to select three out of them. How many samples are possible?

Answer

We have to use combinations to determine the number of samples which are possible. The formula for the number of such combination is
nCr = n!/(n-r)!r!
where n! = n(n-1)(n-2)(n-3)…..(3)(2)(1)
(Note: 0! = 1)
Therefore the answer will be 10C3 = (10 × 9 × 8)/(3 × 2 × 1) = 720/6 = 120
Number of samples possible = 120

Q7. Discuss how you would use the lottery method to select 3 students out of 10 in your class?

Answer

Make ten paper slips with name of each student of equal size. Now, there are ten cards available. Mix them well. Now draw three slips at random without replacement one by one. By this method we can select three students.


Q8. Does the lottery method always give you a random sample? Explain.

Answer

Yes, the lottery method always gives a random sample if it is used in the proper manner without any bias. In a random sample, each individual unit has an equal chance of getting selected. Similarly, in a lottery method, each individual unit is selected at random from the population and thereby has equal opportunity of getting selected.

Q9. Explain the procedure of selecting a random sample of 3 students out of 10 in your class, by using random number tables.

Answer

For selecting a random sample of 3 students out of 10 by random number tables we consult one digit random numbers and we will skip random numbers greater than value 10 as it the largest serial number. We have other 9 one digit numbers. Thus, the 3 selected students out of 10 are with serial numbers 5,9,2.

Q10. Do samples provide better results than surveys? Give reasons for your answer.

Answer

Sample gives provide better results than surveys because
→ A sample can provide reasonably reliable and accurate information at a lower cost and shorter time.
→ As samples are smaller than population, more detailed information can be collected by conducting intensive enquiries.
→ Sample need a smaller team of enumerators, it is easier to train them and supervise their work more effectively.

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –10 Comparative Development Experiences of India and Its Neighbours | EDUGROWN |

NCERT Most important question:

Q1. Write some lines on the comparative development experiences of India and its neighbouring countries. 

Ans: India and its neighbors have nearly identical growth policies, which are as follows:

  1. Following their independence in 1947, India, Pakistan, and China all embarked on their respective developmental paths at the same time. The People’s Republic of China, on the other hand, was founded in 1949.
  2. All three countries had begun to outline their development strategies in a similar manner. India introduced its Five Year Plan in 1951-56, whereas Pakistan presented its first Five Year Plan, known as the Medium Term Plan, in 1956. In 1953, China unveiled its first Five-Year Plan. 
  3. India and Pakistan pursued similar methods, such as establishing a large public sector and increasing government spending on social development.
  4. Until 1980, the three countries had comparable growth rates and per capita incomes.
  5. Economic reforms were implemented in all three countries. The reforms began in India in 1991 while in 1978, and 1988 in China and Pakistan respectively.

Q2. Write a short note on the history of revolution of PRC. 

Ans: The People’s Republic of China (PRC) is a country with a long history and culture. Unlike many other countries, practically the entire country of China was ruled by a single authority for many centuries. Several dynasties ruled China, including the Xia, Shang, Han, and Tang. The Qing Dynasty was China’s last ruling dynasty (also known as Manchu Dynasty). China, like many other countries around the world, has a long history of fighting tyrants and dictatorships for equality and prosperity. 

The founding of the People’s Republic of China in 1949 appeared to be the conclusion of the quest for a better living. At the time, China’s Communist Party (CPP), a leading political union, was established. Workers, peasants, the tiny bourgeoisie, and national capitalists were defined as an alliance of four socioeconomic classes. 

The CPP, as the working-class leader, was to lead the four classes. The Chinese Communist Revolution, also known as the 1949 Revolution, was the climax of the Chinese Communist Party’s ascension to power since its formation in 1921, as well as the second half of the Chinese Civil War (1946–1949). This time is referred to as the War of Liberation in the official media. The Great Proletarian Cultural Revolution, also known as the Cultural Revolution, was a social-political movement that occurred in the People’s Republic of China from 1966 to 1976.

Q3. What are the reasons for the low population growth in China? 

Ans: The reasons for the low population growth in China are:

  • One Child Policy: For many years, China has rigidly enforced the “one child” restriction. This rigidly enforced rule meant that many Chinese couples could only have one child for more than three decades. If they possessed more than one, they risked hefty penalties and varied degrees of harassment from local authorities. 

China’s Communist Party authorities implemented the strategy in 1980 in order to slow the country’s out-of-control population growth. This approach also resulted in a decrease in China’s sex ratio, or the proportion of females per thousand males.

However, in 2015, one child policy was ruled out in China, thus allowing families to have two children owing to massive decline in population growth. 

  • Costs of Raising Children: In China, raising a child is expensive, especially in cities, thus it acts as a hindrance for the couples to think of another child. 
  • Better Socio-Economic Position of Women: The average improvement in female socioeconomic position over the last 20 years has contributed to a decline in population rate. 
  • High Cost of Real Estate: Another lethal factor is the high cost of real estate in China.

Q4. What were the economic reforms introduced in all the three countries (India, China and Pakistan)? 

Ans: Following their independence in 1947, India and Pakistan implemented planned development programs that relied on the public sector to drive the process of growth and development. 

In 1949, China adopted a more strict growth strategy and decided to place government control over all essential areas of manufacturing activity. In 1958, the Great Leap Forward (GLF) initiative was initiated, with the goal of extensive industrialization of the economy. 

China adopted the Commune system of agricultural production, which was a collective agriculture method. China’s export-driven manufacturing is a critical component of its economic success story. 

Until roughly 1980, the economies of India, China, and Pakistan did not show much variance in GDP growth rate, which was around 4% per year. The breakthrough in GDP growth rate was recorded in the early 1980s in China, the mid-1980s in Pakistan, and the 1990s in India. In 2005, India and Pakistan both saw GDP growth of 6 to 8%, while China experienced GDP growth of around 10% each year.

Q5. Is it possible for India to introduce ‘One Child Norm’ like China to reduce population? Write your views. 

Ans: Rising population has been a major source of concern for our country in recent decades. To combat the dramatic increase, we have so far resorted to measures such as giving free Family Health Planning services to married couples etc. 

One of the conceivable options is to implement a one-child policy, similar to what the Chinese have done, but true to say is not easy to implement such a policy in a country like ours. 

Implementing this would be a difficult task, given the likelihood of protests from political parties, ethnic communities, religious bodies, and other idle social organizations. 

Assume that if India implements it, there will be a great deal of confusion. For example, it should be in both rural and urban areas, or in either. In India, around 70% of the population lives in rural areas, with the remainder living in metropolitan or semi-urban areas. 

China, too, has a rural majority, but its program has only been applied for families residing in cities. Given that India is a labor-intensive nation recognized for its inexpensive labor, such a restriction may result in a labor shortage in the long run, affecting the nation’s economic growth. 

To summarize, the One Child Norm appears to be a need, but its implementation in India necessitates careful juxtaposition of facts and data.

Q6. What is demography and demographic indicators? 

Ans: Demography is the study of population science. Demographers study population dynamics by focusing on three major demographic processes: 

  • Birth, 
  • Migration, and 
  • Ageing (including death). 

The quantitative and qualitative features of the human population are studied in this. The quantitative elements of the population include its composition, density, distribution, growth, migration, size, and structure. 

Sociological elements such as school quality, crime, development, diet and nutrition, race, social class, wealth, and well-being are examples of qualitative features. 

Demography’s significance stems from its contribution to better preparing the government and society to deal with the difficulties and demands of population expansion, aging, and migration. Demographic dynamics and distributions have an impact on a wide range of social outcomes.

Demography employs a wide range of demographic indicators. For example:

  • Life expectancy at birth is the number of years that newborn infants would survive if they were subject to the mortality risks that existed at the time of their birth for a cross-section of the population.
  • The annual number of deaths per 1,000 people is known as the crude death rate. 
  • The annual number of births per 1,000 people is referred to as the crude birth rate. 
  • The total fertility rate is the number of children born per woman if she lived to the end of her child-bearing years and had children at each age based on current age-specific fertility rates. 
  • The percentage of the population residing in urban areas, as determined by the most recent population census, is referred to as the urban population.

Q7. Explain the following:- 

(a) Special Economic Zones (SEZ) 

Ans. A Special Economic Zone (SEZ) is a clearly defined duty-free enclave that is treated as foreign territory for the purposes of trade operations, duties, and tariffs. In other words, a special economic zone (SEZ) is a geographical area with economic rules that differ from those of the rest of the country. It is a region where business and trade laws differ from those found elsewhere in the country. 

SEZs are placed within a country’s borders and have the following goals

  • Improved commerce, 
  • Increased investment, 
  • Job development, and 
  • efficient administration. 

There are currently eight operational SEZs in India, which are located in Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal), and Noida (Uttar Pradesh). In addition, a SEZ in Indore (Madhya Pradesh) is now operational. 

(b) Great Leap Forward (GLF) 

China’s Second Five Year Plan was named the Great Leap Forward (1958-62). The Great Leap Forward was a 1950s economic and social movement that intended to transform China from an agrarian economy to modern society. It was a short-term endeavor by the Communist Party of China (CPC) led by Mao Zedong, also known as Mao Tse-tung, to turn China into a society capable of competing with other Western industrialized nations. 

The Great Leap Forward, China’s second five-year plan, was inaugurated in January 1958, and millions of Chinese citizens were relocated to communes to work on farms or in industry. Private farming was forbidden. It was the result of Mao Zedong’s impatience for industrial and manufacturing development.

(c) GPCR (Great Proletarian Cultural Revolution) 

In the 1960s, Chinese Communist Party leader Mao Zedong became concerned that the current party leadership in China was increasingly heading towards a revisionist direction, with a major focus on expertise rather than ideological purity. The Cultural Revolution was a political, social, and cultural movement inspired by Mao Zedong’s cult and directed by a group of political figures known as the ‘Gang of Four.’ 

The Cultural Revolution rallied and encouraged Chinese youth to criticize and attack anyone perceived to be an enemy of the Chinese Communist Revolution’s objectives. Although the origins of the Cultural Revolution were diverse, at least two variables had a role in it. Mao Zedong’s efforts to reclaim his dominant position as China’s policymaker were one cause. The second was the ‘Mao Cult.’

Q8. What are the reasons for the slow growth and re-emergence of poverty in our neighbouring country, Pakistan?  

Ans. Experts feel that Pakistan’s progress has been driven primarily by years of a good harvest. Furthermore, growth was driven by finance from external borrowings and Middle Eastern remittances. The economy suffered when the crops failed. These issues contributed to Pakistan’s slow growth and the re-emergence of poverty. 

India has always had an advantage over Pakistan in some areas, such as having more trained labor, making good investments in education, and improving basic health care facilities. 

Agriculture and food production was not founded on an institutional framework of technology. Rather, it was founded on favorable circumstances. When conditions were favorable, economic growth exhibited positive trends and vice versa. They are becoming more reliant on foreign borrowings, and repaying the loans is becoming increasingly challenging. Inadequate infrastructure in the manufacturing sector, which also impedes expansion. 

There are numerous causes for this, some of which are highlighted below:

  • Terrorism: It is a major impediment to Pakistan’s economic development. It has been a war-torn country since 2002. This has long been a contributing factor to Pakistan’s unfavorable worldwide image, limiting foreign investment in the country.
  • Corruption: Since 1947, corruption has firmly established its roots. It has now become a very political subject, with even the country’s prime leaders being accused of it.
  • A Lack of High-Quality Education: Education is a critical component of economic success. Unfortunately, our present literacy rate is 60%, with the lowest rate in South Asian countries. Around 25 million children are not attending school.
  • Inadequate Health-Care Facilities: Public hospitals paint grim visions of a lack of proper drugs, beds, and equipment, among other things. Because of a lack of basic health care, approximately 170 women die from pregnancy for every 100,000 births.
  • Tax Evasion: A regressive tax system takes roughly 90% of taxable income from ordinary males. Large firms, landlords, business owners, and politicians fail to pay their fair amount of taxes. They earn a lot but pay less tax; on the other side, the poor earn less yet pay more tax. Pakistan should improve its export competitiveness by lowering the cost of doing business.

Hence, Pakistan should take a strategic approach to increase its exports to neighboring markets, and work upon enhancing its general economic condition as because of the country’s general economic challenges, ordinary men and and women has to face economic inadequacy and deprivation.

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