MICROECONOMICS CH : 5 THEORY OF DEMAND — Economics STD 11 Commerce — Question

Find out mean deviation of the following data.

Items:	5	10	15	20	25	30	35	40
Frequency:	8	16	18	22	14	9	6	7

Calculate coefficient of correlation between age group and rate of mortality from the following data:

Age group	0-20	20-40	40-60	60-80	80-100
Rate of mortality	350	280	540	760	900

Use pie diagram to represent the following data.

Expenditure item	Amount ₹
Salary and Wages	45,000
Rent	15,000
Interest Patment	8,000
Repair	20,000
Capital Formation	12,000

Define market demand. Explain the factors that affect it.

Explain briefly the advantages and limitations of graphical presentation of data.

Total production of foodgrains of India was 2,500 lakh tonnes during 2015-16. Out of total production, the production of rice, wheat and other crops was 1,000, 900 and 600 lakh tonnes respectively. The percentage contribution of these crops was estimated 40%, 36% and 24%, respectively.
Present this data in tabular form along with its main parts.

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

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.

Construct the following indices by taking 2014 as the base year

1. Simple Aggregative Price Index.
2. Index of Average of Price Relative.

Item	A	B	C	D	E
Price in 2014 (₹)	6	2	4	10	8
Price in 2015 (₹)	10	2	6	12	12
Price in 2016 (₹)	15	3	8	14	16