MICROECONOMICS CH : 11 THEORY OF SUPPLY — Economics STD 11 Commerce — Question

State any four difficulties in constructing index numbers.

Which of the following errors is more serious and why?

1. Sampling error.
2. Non-Sampling error.

Represent the following data by an appropriate bar diagram.
Index Numbers of Agricultural Production

(base 1991-92 = 100 and figures of the nearest of unit value)

Foodgrains
Year	Rice	Wheat	Pulses
1999-2000	149	157	141
2000-01	162	170	131
2001-02	165	187	139
2002-03	155	176	121
2003-04	164	197	140
2004-05	166	189	127
2005-06	173	201	145

Calculate the demand schedule of Raju, using following table. (Assuming Market includes four buyers.)

Price (₹)	Ramesh (Units)	Raju (Units)	Rahim (Units)	Rina (Units)	Market Demand (Units)
5	19	-	7	6	32
4	20	-	10	9	44
3	21	-	12	11	51
2	22	-	14	15	61
1	23	-	18	19	74

What are your reasons for studying Economics?

From the following data, calculate coefficient of quartile deviation.

Wages less than:	10	20	30	40	50	60	70
No. of Workers:	5	8	15	20	30	33	35

"An investigator should be careful while using secondary data”. Discuss.

Draw a Lorenz curve from the data given below:

Income:	100	200	400	500	800
No. of Persons:	80	70	50	30	20

Draw a production possibility curve and indicate the following situations on the diagram:
(i) Fuller and efficient utilisation of resources,
(ii) Underutilisation of resources, and
(iii) Growth of resources.

Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if both market demand and market supply of the good increase in the same proportion? Use diagram.