Measures of Central Tendency — Economics STD 11 Commerce — Question

Use the data in Table 3.2 that relate to monthly household expenditure (in ₹) on food of 50 households and:

1. Obtain the range of monthly household expenditure on food.
2. Divide the range into appropriate number of class intervals and obtain the frequency distribution of expenditure.
3. Find the number of households whose monthly expenditure on food is:

1. Less than ₹ 2000
2. More than ₹ 3000
3. Between ₹ 1500 and ₹ 2500

Explain the Law of Variable Proportion with the help of total and marginal physical schedule.

Distinguish between extension of supply and increase in supply with the help of diagrams.

Read the following case study carefully and answer the questions 1-6 on the basis of the same:
An economic system is a set of principles based on which an economy can run and make decisions about which goods and services to produce, how to produce and exchange them, how should the income from the production be distributed among the factor resources and what shall be the right balance between public sector and private sector and that between free market mechanism and regulation. Capitalism is an economic system based on certain principles, like provision of private property rights, free market economy and allowing economic agents (consumers and producers) to pursue private motives and self-interest with no or minimal government intervention. In an open economy and free trade environment, countries should produce the goods domestically in which they have comparative advantage. Comparative advantage principle states that if a country can produce a particular good at least opportunity cost comparatively than the rest of the world, then the country has comparative advantage in producing that good.

1. In _________ the degree of consumer sovereignty is highest.
(a) market economy
(b) centrally planned economy
(c) mixed economy
(d) both (a) and (c)

2. Which of the following is not a feature of centrally planned economy?
(a) Control of central authority
(b) Ownership of resources by government
(c) Consumer sovereignty
(d) Dominance over economic activity by public sector

3. Which among the following countries is not capitalistic or market driven in nature?
(a) Hong Kong
(b) Ireland
(c) Russia
(d) Canada

4._________economy is an economy in which the degree of interdependence and exchange is of a moderate degree.
(a) Simple
(b) Complex
(c) Both (a) and (b)
(d) None of these

5. Read the following statements carefully and choose the correct alternative among those given below:
Statement 1 : In a simple economy, income level of the people is low.
Statement 2 : In a complex economy, wants are multiple as well as enormous.
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false

6. In mixed economy, both public and private sectors dominate the economic activity.

Answer the following questions
(i) The measure of price elasticity of demand of a normal goods carries minus sign while price elasticity of supply carries plus sign. Explain why?
(ii) A commodity showing high elasticity of demand often has a large number of close substitutes in the market. Do you agree?

Following table represents the demand schedule of households, A, B and C. Derive market demand schedule.

Price (₹)	Household A (Units)	Household B (Units)	Household C (Units)
8	6	12	22
7	7	13	23
6	8	14	24
5	9	15	25
4	10	16	26

Suppose an economy produces only two goods, namely wheat and cloth, with its available resources. Following table shows different possibilities of production of wheat and cloth. Calculate the marginal opportunity cost of cloth at various combinations. Also, draw the production possibility curve.

Cloth (Thousand bales)	0	1	2	3	4
Wheat (Lakh tonnes)	100	90	70	40	0

Explain different types of random sampling methods in short.

Find out coefficient of variation from the following data:

X	5	15	25	35	45	55	65
f	4	6	10	20	10	6	4