FREQUENTLY ASKED QUESTION CHAPTER1 INTRODUCTION

Q.1 What is the importance of statistics in economics? Ans. A number of economic problems can easily be understood by the use of statistics. It helps in formulation of economic policies e.g., basic economic activities like production, consumption etc. use statistics. The importance of statistics in various parts of economics as follows: a) Statistics in consumption :Toobtain the knowledge of how different groups of people spend their income from statistics relating to consumption. the data of consumption are useful and helpful in planning their budget and improve their standard of living. b) Statistics in production : The comparative study of the production process in done with the help of statistics. The statistics of production are very useful and helpful for adjustment of demand andsupplyanddeterminingquantityofproductionofthecommodity. c) Statistics in distribution : Statistical methods are used in solving the problem of distribution of national income among various factors of production i.e., land, labour, capital and entrepreneur.

Q.2

Explain functions of statistics?

Ans. Statistics performs very important functions, these are : 1. Helps in Understanding Economic problem : Statistics in an indispensable tool for an economics that helps to understand an economicproblem.Usingitsvariousmethods,effortismadetofind the causes behind it with the help of the quantitative facts of the economic problem. Presentation of facts in definite form: Statistics enables an economist to present economic facts in a precise and definite form that helps in proper comprehension of what is stated. W hen economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statement. Statistics helps in condensing mass data in to few numerical measures : The numerical measures help to summarise data. For example, It would be impossible for us to remember the income of 143 XIEconomics

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all the people in a data, it the number of people is very large. Yet onecanremembereasilyasummaryfigureliketheaverageincome that obtains statistically. In this way statistics summarises and presents meaningful overall information about a mass of data.. 4. Establishes relation between factors : Statistics is used in finding relationshipsbetweendifferenteconomicfactors.Aneconomistmay be interested in finding out, what happens to the demand for a commodity when its price increases or decreases? Such questions can onlybe answeredif anyrelationships exist ornot canbe easily verified by applying statistical methods. Helpsinformulationofplansandpolicies:Statisticalmethods,help formulate appropriate economic policies and plans that solve economic problem.

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Q.3

Explain limitations of statistics?

Ans. Statistics has some limitations, these are : 1. Statistics does not study individuals : Study of an individual in not a part of subject matter of statistics. Statistics studies the aggregate of facts only. Statistics deals with quantitative facts only : Statistics are numerically expressed. Statistics does not study qualitative aspects. It can be used for measured quantitative data only. Statistical laws one true only on Averages : Statistical laws are not exact like the laws of physics, chemistry etc. Statistical results are true only on an average. Only experts can make the best possible use of statistics: Statisticscanbeusedbyexpertsonly.Itrequiresspecialknowledge to use statistical tools otherwise results may be wrong. Uniformity and Homogeneity of Data : It is essential that data must have the quality of uniformity and hemogeneity to make data comparable.

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FREQUENTLY ASKED QUESTION CHAPTER2 COLLECTION OF DATA

Q.1 Explain difference between primary data and secondary data? Primary Data 1. Data collected by the investigator for his own purpose for the first time are called primary data. 2. These are original as these are collected from the source of origin. 3. Thesearecostlier intermsof time, money and efforts involved 4. Example:Investigatormakes a list of marks obtained by students in economics of class XI by interrogating them. Secondary Data 1. Data which are already in existence and which have been collected for some other purpose are called secondary data. 2. These are not original as these are already in existence. These can be obtained from published or from any other sources. 3. These are less costlier in terms of time, money and efforts involved. 4. Example : investigator collects the marks obtained by class teacher in economics of class XI from his school records like award list, result register etc.

Q.2

What is personal interviews to collect primary data? Mention its merits and demerits?

Ans. Personal Interviews : This method is used when the researcher has access to all the members. The researcher conducts face to face interviews with the respondents. The interviewer has the opportunity of explaining the study and answering any query of respondents. Merits : 1. 2. Collect highest response rate by this method. Misinterpretation and misunderstanding can be avoided. 145 XIEconomics

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3. 4.

Watching the reactions of respondents can provide supplementary information. Allows clasification of ambiguous questions.

Demerits : 1. 2. 3. 4. Q.6 It is expensive It requires trained interviewers It takes longer time to complete the survey. Presence of the researcher may inhibit respondents from saying what they really think.

Differentiate between census and sample method? Difference between census method and sample method 1. Census covers every individual/unit belonging to the population. 2. Since all items are studied under census method, highestdegreeof accuracyis possible. 3. Asallitemsarestudiedunder census method, this method is very expensive and involves a lot of money and efforts. 4. Census method is very time consuming as all items are studied. 5. Census method is suitable when items in the universe have diverse characteristics. 6. This method is suitable when the area under investigation is relatively small. 1. Sample is a smaller group selected from the population from which the relevant information would be sought. 2. Since only representative samples are studied under sample method, It is less accurate.Howevererrorscan be eassly detected and removed. 3. As only few samples are studied under sample method, this method is comparativelylessexpensive. 4. Sample method is less time consuming as only samples are studied. 5. Sample method is suitable when items in the universe are homogeneous. 6. This method is suitable when the area under investigation is large. XIEconomics

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FREQUENTLY ASKED QUESTION CHAPTER3 ORGANISATION OF DATA

Q.7 Discuss the different methods of classification of data? Ans. The raw data is classified in various ways depending on the purpose. 1. Chronological Classification : In such a classification data are classified either in ascending or in descending order with reference to time such as years, quarters, months, weeks etc. Spatial Classification : The data are classified with reference to geographical locationssuch as countries, states,cities, districts etc. Qualitative classification : Characteristics like nationality, literacy, religion, gender, marital status etc. are called qualities or attributes. They can not be measured. Yet these attributes can be classified on the basis of either the presence or the absence of a qualitative characteristic. Such a classfication of data on attributes is called a qualitative classification. Quantitative classification : Characteristics like height, weight, age, income, makers of students etc. are quantitative in nature. When the collected data of such characteristics are grouped into classes. It becomes a quantitative classfication.

2. 3.

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Q.8

Explain characteristics of classification?

Ans. The main characteristics of classification are : 1. 2. Homeneity : The data classfied in one group or class should be homogeneous all items in a group must be similar to each other. Clarity:Classificationshouldbedoneinsuchawaythatmeaningful conclusion is possible. Each item of the data should belong to one particular class only.There should be no confusion about the group or class of a given item. Flexibility : Classification should be flexible and should be able to adapt to new conditon of the given enquiry. Some of the classes may have to be abandoned and new classes need to be added. Diversification : Classification should be done in such a way that every itemof study canbe classifiedin to class.If all itemsare not 147 XIEconomics

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included in the classes arrangement of data will not be correct. 5. Suitabletoobjectives ofstudy:Thebasis selectedforclassification should be in accordance with the objectives of the statistical study. If basis selectedfor classfication do not matchthe requirement, the entire exercise of investigation will be meaningless.

Q.9

Construct a discrete frequency series with the help of following data by arranging in ascending order. Marks 6 6 6 5 5 7 7 5 9 9 8 7 7 8 4 5 8 6 4 5

Ans.

Makrs 4 5 6 7 8 9 Total

Tallybars I I I I I I I I I I I I I I I I I I I

Frequency 2 5 4 4 3 2 20

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FREQUENTLY ASKED QUESTION PRESENTATION OF DATA

Q. Define tabulation, (1 marks) Ans. It is a process of presenting data in the form of a table. Q. Questions in constructions of histogram, frequency polygon and frequency group.

Ans. Hints : Histogram all rectangles must be attached with each other Frequency polygon Must join the midpoints of the tops of rectangles with scale. Frequency curve Must join the midpoints of the tops of rectangles with free hand. Q. Explain the main part of a table.

Ans. Hints : Explain any six following points. a) b) c) d) e) f) g) h) Table number Title Caption Stubs Body of table. Source Note Unit of measurement.

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FREQUENTLY ASKED QUESTION MEASURES OF CENTRAL TENDENCY

Q. Which average would be suitable in the following causes? a) Average production in a factory per shift. b) Average wages in an industrial concern. c) In case of open ended frequency distribution Ans. a) Airthmatic Average b) Airthmaic Average c) Q. Median. Median Merits a) Definite value b) Expressed/determined graphically. c) Easy to calculate Demerits a) Arrangment of data is required b) Not suitable for algebric treatment c) Affected by fluctuantions of items. Write merit of demerit of mean or median. Merits a) No need of arrangement of data b) Easy to calculate c) Based an all values of series

Ans. Mean

Demerits a) Cant located graphically b) Calculation not possible if single item missing c) Q. Not used in case of qualitative measurement Easy to understand. Easy to compute.

Requisites of an ideal averages : ii)

Ans. i)

iii) Rigidly defined iv) Based as all item of series. v) Capable of algebric treatment vi) Least affect of fluctuation. 150 XIEconomics

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FREQUENTLY ASKED QUESTION CHAPTER6 MEASURES OF DISPERSION

Q. What do your mean by lorenze curve. Ans. It is a graphic representation of dispersion, which studies about distribution of income, wealth, profit, wages etc. Q. What is variance. variance = Q.
2

Ans. The square of standard deviation is known as variance =

2 x

N From the following data find out which factory may be considered more uniform. No. of Workers Wages (in Rs.) 20 60 100 140 180 220 260 300 Hints: Calculate Factory A 30 25 30 45 25 13 24 8 Factory B 45 35 25 40 25 20 5 5

and standard deviations of both factory. .

Then calculate coefficient of variance of both factory with the help of formula C.V. = Factory A Factory B = 137, S.D. = 80.8, C.V. = 59%. = 114, SD. = 75.6, C.V. = 66.6% Factory A is more uniform.

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FREQUENTLY ASKED QUESTION CHAPTER : 7 CORRELATION

Q.1 Q.2 Who probmted the rank difference method of correlation ? 1 Marks Hint : Prof. Charles spearman. Define correlation. Give an example each of positive and negative correlation 3 marks Hints : Positive correlation Increase in Price and increase in supply Negative correlation Rise in price and full in demand Q.3 Compute karl pearsons coefficient from following data : X : Y : Hints i) ii) Compute mean of both series ( x y ) Take deviation from the mean (xy)

6 marks) 13 13 7

10 7

12 9

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2 2 iii) Square the deviation of the both series (x y )

iv) Compute the product of deviation of both the series. (xy) v) Use following formula

= Answer = 0.115 (Low degree of negative correlation)

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FREQUENTLY ASKED QUESTIONS CHAPTER : 8 INDEX NUMBERS

Q.1 Q.2 What is the symbol of the price of the base year? Hint : P o State characteristics of index numbers Hints : 1) 2) 3) 4) 5) Q.3 Expressed in numbers Relative measure Average of percentage Basis for comparison Universal utility 6 marks 3/4 marks 1 marks

Write three uses of wholesale price Index? Hints : 1) 2) 3) Forecasting Demand and supply Determination of Real changes in Aggregate Indicator of Rate of Inflation.

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FREQUENTLY ASKED QUESTIONS CHAPTER : 1 INDIAN ECONOMY ON THE EVE OF INDEPENDENCE

Q.1 Q.2 What was the infant mortality rate of India during British Rule? Hint : 18 per thousand live births. What were the two main draw backs of the industrial sector during colonial rule? 3/4 marks Hints : i) ii) iii) v) Q.3 Deindustrialisation Lopsided modern industrial structure Capital goods industries were lacking United operation of the public sector

What were the main causes of Indias agriculture stagnation during the colorial period? 6 marks Hints : 1. 2. 3. 4. Land settlement system Commercialization of Agriculture Low level of productivity Adverse effect of partition.

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FREQUENTLY ASKED QUESTIONS CHAPTER : 2 INDIAN ECONOMY 19501990

Q.1 Q.2 Who formulates plans in India? Hint : Planning Commission. What were the limitation of green revolution Hints i) ii) iii) iv) v) Q.3 Restricted to limited crops and areas. Partial removal of poverty Differential gains Rise in unemployment Some other harmful effects. 3/4 Marks 1 Mark

How were the industries classified according to the industrial policy resolution 1956 (6 Marks) Hints : i) ii) Schedule A Schedule B 17 industries under the exclusive responsibility of state. 12 industries under the responsibility of state but private sector units would be allowed to expand existing units. Otherresidualindustriesleftopentotheprivate sector

iii)

Schedule C

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FREQUENTLY ASKED QUESTIONS CHAPTER : 3 ECONOMIC REFORMS SINCE 1951

Q. 1 When was new economy policy announced? Hints : July 1991 Q.2 What are the objective of WTO? Hints : i) ii) To develop integrated and durable cultural trading system. To reduce tariff and nontariff barrier 3/4 Marks 1 Mark

iii) To ensure linkages between trade policies, environmental policies and sustainable development. iv) To raise the standard of living. Q.3 Mentionanythreecauses,whichwereresponsibleforeconomicreforms 6 Marks Hints : i) ii) v) Poor performance of public sector Difficult in balance of payment. Fall in foreign exchange reserves.

iii) Huge burden of debts

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FREQUENTLY ASKED QUESTIONS CHAPTER : 4 (POVERTY)

1. How poverty is estimated in India. (3 marks) Hints : i) ii) 2. Briefly explain calorie based measurement. Briefly monthly per capita consumption expenditure. (3/4 marks)

Distinguish between absolute and relative poverty. Hints: Relative i) ii) Absolute i) ii) Poverty relative to other people, state. In India relative poverty measured by lorans curve

person below poverty line. Measure with the help of poverty line. 23% papulation is below poverty

iii) 3.

India is among the iii) poorest country of world.

Explain poverty alleviation programme started by Govt. Hints : i) ii) iii) iv) v) vi) Food for work prog. Sampoorna Grameen Swarajgar Yojana (SGSY) Pradhan Mantri Gramodyog Yojana (PMGY) Pradhan Mantri Rojgar Yojana (PMRY) Indira Awas Yojana (IAY) National Rural Employment Guarantee Act (NREGA)

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FREQUENTLY ASKED QUESTIONS CHAPTER : 5 HUMAN CAPITAL FORMATION

Q. Define Human Capital Formation? (1 mark) Ans. It is the process of adding to the stock of skilled, educated, trained and experienced human capital in an economy. Q. Explain main sources of human capital Hints : Explain the following point : a) b) c) d) e) Q. Expenditure on education. Expenditure on health. Training Expenditure as information. On job training. (3/4 marks)

Explain the role of education in the development of a country. (6 marks) a) b) c) d) e) f) Education raises production. Education raises efficiency and productivity. Education improves quality of life. Education generates employment Education brings positive changes in outlook and attitudes. Education increases the stock of human capital.

Ans. Hints : Explanation of following points

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FREQUENTLY ASKED QUESTIONS CHAPTER : 6 RURAL DEVELOPMENT

Q. What do you means by rural development. (1 mark) Ans. Rural development means focus on providing basis infrastructure to that ruralareaswhicharelaggingbehindforoveralldevelopmentofthevillage economy. Q. What is a multi agency system? Why was it set up in India? (3/4 marks) a) b) c) Cooperative credit societies Commercial banking. Regional Rural Bank. Ans. Multi agency approach consist of :

It was set up to provide rural credit in all rural areas. Q. Explain Functions of NABARD a) b) c) d) e) f) Providing loan (short, mediums long) to cooperative societies, RRBs, and Land Development Bank. Grant longterm loan to state govt. Inspections of coopperative banks and RRBs. Coordinasion of activities concurring to the development of SSIs, village industries and rural crafts. To promote research in agriculture and rural development. Serve as refinancing agencies.

Ans. Hints :

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FREQUENTLY ASKED QUESTIONS CHAPTER : 7 EMPLOYMENT GROWTH, INFORMATION AND RELATED ISSUES
Q. What is Jobless Growth? (1 marks) Ans. It is a situation where there is an overall acceleration in the growth rate of GDP in the economy which is not accompanied by a commensurate expansion in employment opportunities. Q. What a main types of unemployment. a) b) c) d) e) f) Q. Open unemployment Fractional unemployment Structural unemployment Cyclical unemployment Seasonal unemployment Disguised unemployment (6 marks) (3/4 marks) Ans. Explain any

What are main causes of unemployment. a) b) c) d) e) f) g) Poverty employment planning Lacks of financial resources Increasing population. Slow economic growth Emphasis an capital intensive projects. Poor growth of small scale industries. Unbalance growth of sectors.

Ans. Explain the following :

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FREQUENTLY ASKED QUESTIONS CHAPTER : 8 INFLATION

Q. 1 Define Inflation Hints : Inflation is situation of persent and appreciable rise in prices. (1 marks)

Q.2 Explain fiscal measure to control inflation. Hints : Revenue policy Raise taxation Expenditure policy Reduce expenditure

(3/4 marks)

Q.3 What is demand full inflation ? What are its causes?

(6 marks)

Demandpullinflationariseswhenthereisanexcessofdemandforgoods over their supply. Reasons : i) ii) iii) iv) v) Growth of black money Increase in population Increase in money supply Increase in public expenditure Increase in disposable income of the consumer.

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FREQUENTLY ASKED QUESTIONS CHAPTER : 9 INFRASTRUCTURE

Q.1 Explain the term Infrastructure. Differentiate Economic Infrastructure and social infrastructure? Ans. Infrastructure refers to the basic supporting structure which is built to provide different kinds of services in an economy. Infrastructure contributes to economic development of a country. There are two types of infrastructure. Difference between economic and social infrastructure .Economic Infrastructure 1. It directly supports the economic system. 2. Examples: Energy, transport and communication etc. 3. It improver the quality of economic resources 4. Expenditure on it will raise the stock of physical capital Social Infrastructure 1. It indirectly supports the economic system. 2. Examples : Health, Education and housing. 3. It improves the quality of human resources. 4. Expenditure on it will raise the stock of human capital.

Q.2 What is the significance of Energy? Differentiate between commercial and noncommercial sources of energy. Ans. Energy is a important aspect of development process of a nation. It is essential for industries, agriculture and related areas like transportation of finished goods. It is also used for domestic purposes like cooking, lighting, heating etc. Difference between commercial and noncommercial sources of energy Commercial Source 1. They command a price and users have to pay a price for them. They are generally exhaustible except hydel power. 162 NonCommercial Source 1. They are free and command no price 2. They are renewable

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3. 4.

Mostly used in production process Examples Coal, petroleum and electricity

3. Mostly used for domestic purposes 4. Examples vegetable wastes firewood and dried drug.

Q. 3 Differentiate between conventional source and nonconventional source of energy? Ans. Difference between convention and nonconventional Sources of Energy Conventional Source 1. Conventional sources of energy include both commercial and noncommercial sources of Energy NonConventional Source 1. Nonconventional sources of energy are renevable resources of energy like solar energy, wind energy.

2.

These are being used since 2. These are being used as very long time. different sources of energy to a very little extent. This source is being used in total disregard to our environment. Examples Coal, petroleum and electricity etc. 3. They help to check pollution. 4. Examples Solar energy, wind energy, tidal energy etc.

3.

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Q.4 How has womens health become a matter of great concern? Ans. Women constitute about 50% of the total population in India. They suffer the most ascompared to men in the areasof education employment and health case. 1. 2. 3. thereisgrowingincidenceoffemalefoeticideinthecountryasthere is decline in the child sex ratio from 945 in 1991 to 927 in 2001. close to 3 lakh girls below 15 years of age have already become mothers. more than 50% of married women (between the age group of 15 to 49) have anaemia and nutritional anaemia caused by iron deficiency. Abortionandalsoamajorcauseofmaternalmorbidityandmortality in India. 163 XIEconomics

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FREQUENTLY ASKED QUESTIONS CHAPTER : 10

ENVIRONMENT AND SURTAINABLE DEVELOPMENT
Q.5 W hat is meant by environment? W hat are the functions of the environment? Ans. Environment is defined as the total planetary in heritance and the totality of all resources. It includes all the biotics, the birds, animals and plants, fisheries etc.) and abiotic factors (Air, water, land, sunlight etc.) that influence each other. The environment performs four vital functions : 1. 2. Envrionment supplies resources. resources include both renewable and nonrenewable resources. Environment assimilates waste because production and consumption activities generates waste. This accur mostly in the form of garbage. Environment absorbs garage. Environment sustains life because environment includes sun, soil, water and air which are essential for the sustenance of human life. Environment enhances the quality of life. Environment includes oceans, mountain, desert etc. Menenjoys these surroundings, adding to the quality of life.

3. 4.

Q.6 What is sustainable development? Keeping in view your locality describe strategies of sustainable development? Ans. Sustainabledevelopmentisthatprocessofdevelopmentwhichmeetsthe needs of present generation without reducing the ability of future generation to meet their own needs. Strategies for sustainable development i) ii) iii) iv) v) Use of nonconventional sources of energy Use of solar energy and wind power. Use of cleaner fules : LPG, gobar gas in rural areas and CNG in urban areas Shift to organic forming People should use public means of transport 164 XIEconomics

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vi) vii)

People should use traditional knowledge and practices People should not use polythene bags and air conditioners.

Q. 7 Write short note on i) ii) Global Warming Dichotomy of the threat to Indias environment

Global Warming : Global warming is a gradual increase in the average temperature of the earths lower atmoshphere and oceans. Global warming is caused by man made increase in carbon dioxide (CO ) and 2 other greenhouse gases through burning of fossil fuels and deforestation. Some of the long term results of Global warming are as follows : i) ii) iii) iv) Melting of polar ice with a resulting rise in sea level and coastal flooding. Extinction of species as ecological niches disappear More frequent tropical storms and An increased incidence of tropical diseases

Dichotomy of the threat to Indias environment : the developmental activities in India have resulted in pressure on its finite natural resources, besides creating impacts on human health and well being. The threat to Indias environment pases a dichotomy threat of poverty induced environmental degradation and at the same time threat of pollution from affluence and rapidly growing industrial sector. Air pollution, water contamination, soil erosion, deforestation and wildlife extinction are some of the most pressing environmental concerns of India.

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FREQUENTLY ASKED QUESTIONS CHAPTER : 11

DEVELOPMENT EXPERIENCE OF INDIA : ACOMPARISON WITH NEIGHBOURS
Q.8 Mention the salient demographic indicators of China, India and Pakistan? Ans. The population of Pakistan is very small and accounts for roughly about one tenth of China and India though China is the largest nation geographically among the three its density is the lowest. Population growthishighestinPakistanfollowedbyIndiaandChina.Onechildnorm is the major reason for low population growth. But this measure led to adeclineinthesexratiothatistheproportionoffemalesper1000males. Thesex ratiois lowandbiased againstfemalesin allthe threecountries. Then is strong sonpreference prevailing in all these countries as the reason. The fertility rate is low in China and very high in Pakistan. Q. 9 Compare India Pakistan and China on the basis of GDP growth rate? Ans. China has the largest GDP (PPP) of $7.2 trillion whereas Indias GDP (PPP) is the $3.3 trillion and Pakistans GDP is roughly 10 percent of Indias GDP. When many developed countries were finding it difficult to maintain a growth rate of even 5%, China was able to maintain near double digit growth because It was 10.3 percent. In 1990s there is a marginal change in Indias and Chinas growth rates whereas Pakistan had a drastic decline to 3.6 percent. Some scholars held the reform process introduced in 1988 in Pakistan and political instability as the reason behind this trend. Q.10 Compare human development indicators of India with China and Pakistan? Ans. Parameters of human development are Items 1. 2. 3. 4. 5. 6. Human development index GDP per capita People below poverty line Infant mortality rate (per 1000) Maternal mortality rate (per lakh) Population with sustainable access to an improved water source 166 India .611 3139 34.7 62 540 86 China Pakistan .768 5096 16.6 26 56 77 .539 2225 17.0 80 500 91

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It is clear in most areas of human development China has performed better than India and Pakistan. This is true for many indicators GDP per capila or proportion of population below poverty line or health indicators such as morality rates. Pakistan is ahead of India in reducing proportion of people below the poverty line and also its performance in access to water is better than India. But neither of these two countries have been able to save women from maternal mortality.

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