1st PUC Economics Model Question Paper 1 with Answers

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Karnataka 1st PUC Economics Model Question Paper 1 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section  – A

1. Choose the correct answers: ( 1 × 5 = 5 )

Question 1.
Alternative uses of resources give rise to the problem of __________.
(a) Rights
(b) Price
(c) Choice
(d) Chance
Answer:
(c) Choice.

Question 2.
The frequency distribution of two variables is known as __________.
(a) Univariate classification
(b) Bivariate classification
(c) Multivarate classification
(d) None of the above
Answer:
(b) Bivariate classification.

Question 3.
Railway transport was introduced in India in the year __________.
(a) 1835
(b) 1776
(c) 1850
(d) 1853
Answer:
(c) 1850.

Question 4.
Which is not the goal of Five year plans __________.
(a) Growth
(b) Modernisation
(c) Self-Efficiency
(d) Self-Reliance
Answer:
(c) Self-Efficiency.

Question 5.
Urban people are mainly engaged in the __________.
(a) Primary section
(b) Service section
(c) Agriculture
(d) Mining
Answer:
(b) Service section.

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Body of the table contains _________
Answer:
Actual Data.

Question 7.
Quartiles are measures, which divides data into __________.
Answer:
4 Parts.

Question 8.
Taxes on Income of individual is called __________.
Answer:
Direct tax.

Question 9.
Investment on education is considered as one of the main source of __________.
Answer:
Human Capital

Question 10.
__________ Farming is free from chemicals.
Answer:
Organic.

III. Match the following: (1 × 5 = 5 )

Question 11.

Answer:
1 – 3
2 – 5
3 – 2
4 – 1
5 – 4

IV. Answer the following questions in a Word sentence: ( 1 × 5 = 5 )

Question 12.
Expand N.S.S.O.
Answer:
National Sample Survey Organisation.

Question 13.
What is Index Number?
Answer:
An index number is a statistical device for measuring changes in the magnitude of a group of related variables.

Question 14.
What is Project?
Answer:
A project is a well thought out action plan designed to attain predetermined objectives.

Question 15.
What is meant by environment?
Answer:
Environment refers to the totality of the phy sical conditions on the earth or a part of it. In other words, it refers to physical surroundings, conditions, circumstances, etc., in which a person lives.

Question 16.
Give the meaning of Infant Mortality Rate.
Answer:
Infant mortality rate is the death of babies per thousand live births.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention any two modes of collecting data.
Answer:
The two modes of collecting data are personal interview and mailing questionnaires.

Question 18.
Write the types of variables.
Answer:
There are two types of variables namely, continuous variable and discrete variable.

Question 19.
What is Spatial classification?
Answer:
When the classification is done on the basis of place, it is called spatial classification. Example, village, block, district, state, country, continent, etc.

Question 20.
What is mean deviation? Which average is used to find it?
Answer:
Mean deviation is the arithmetic mean of the differences of the values from their average. The average used is either arithmetic mean or median.

Question 21.
What is Price Index Numbers? Mention it’s types.
Answer:
Price index numbers measure the general changes in prices between the current year and the base year. The general price index is used to measure the value of money. The following are the different types of price index numbers:

1. Consumer price index
2. Wholesale price index
3. Retail price index
4. Producer price index.

Question 22.
Mention the name of any four statistical tools.
Answer:
The most important statistical tools are the measures of central tendency, dispersion, correlation, bar diagrams, pie chart, histogram, etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5=10 )

Question 23.
What is the meaning of health?
Answer:
Health refers to absence of diseases and the ability to realize one’s potential. It is a yardstick of one’s well-being. Health is the holistic process related to the overall growth and development of a nation.
The main indicators of health are infant mortality index, maternal mortality index, life expectancy index and crude birth and death rates.

Question 24.
What do you mean by disinvestment?
Answer:
Disinvestment refers to the sale of part of the equity shares of public sector enterprises to the general public. In other words, privatization of the public sector enterprises by selling off part of the equity of public sector undertakings to the public in general is called as disinvestment. The main purpose of disinvestment is to improve the financial condition and facilitate modernization.

Question 25.
Define Poverty line as per Planning Commission.
Answer:
According to the Planning Commission of India, poverty line is measured on the basis of minimum nutritional calories required for rural and urban population. It is estimated that a person is said to be poor, if he is unable to consume 2,400 calories per day in rural areas and 2,100 calories per day in urban areas.

Question 26.
What are the indicators of education achievement in a country?
Answer:
The indicators of educational achievements are as follows:

• Adult literacy level
• Primary’ education completion rate
• Youth literacy rate.

Question 27.
Give the meaning of rural development.
Answer:
Rural development means improvement of the socioeconomic lives of the rural people by providing basic infrastructures which make them to engage them in productive activities. In simple words, the term rural development refers to the overall development of the rural economy.

Question 28.
Which are economic infrastructures?
Answer:
The economic infrastructural facilities are those which directly contribute towards economic development. The main economic infrastructures are energy, transportation, communication, banking, insurance, warehouse, etc.

Question 29.
Name the types of medical systems included in AYUSH.
Answer:
The types of medical systems included in AYUSH are Ayurveda, Yoga, Unani, Siddha, Homeopathy and Naturopathy. .

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics helps to study economics.
Answer:
Statistics plays a very important role in the field of economics. It helps in the study of economics in many ways:

1. It helps to understand economic problems: By using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts. Once the causes of a problem are identified, it is easier to formulate certain policies to tackle them.

2. It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of w hat is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance, saying 350 people have died in Kashmir unrest since 2000, is more accurate than saying that a lot of people have died in the unrest.

3. Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example, it would be impossible to remember the income of all the people of a country. But we can remember average income i.e., per capita income.

4. It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will be impact on inflation, when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

5. It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In other words, one must know what could be the expected level of consumption in 2016-17. So, the statistical tools to predict consumption in 2016-17 could be based on the data of consumption of past years obtained by survey s.

Question 31.
What is random sampling? explain briefly.
Answer:
Random sampling is where the individual units from the population (samples) are selected at random. For instance, the government wants to determine the impact of the rise in petrol price on the household budget of particular locality. For this, a representative (random) sample of 30 household has to be taken and studied. The names of all the 300 households of that area are written on pieces of paper and mixed well, then 30 names to be interviewed are selected one by one.

In the random sampling, every individual has an equal chance of being selected and the individuals who are selected are just 1 ike the ones who are not selected. In the above example, all the 300 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample, such drawn, is a random sample. This is also called lottery method. The same could be done using a random number table also.

Question 32.
Differentiate between continuous and discrete variables.
Answer:
Continuous Variable:

• It can take any numerical value.
• It may take integral values, fractional values and values that are not exact fractions.
• For example, the height of a student, as he grows say from 100 to 1 50 cm, would take all the values in between 100 and 150.
• The variable is capable of manifesting in every conceivable value and its values can also be broken down into infinite gradations.
• Other examples oía continuous variable are weight, time, distance. etc.

Discrete Variable:

• It can take only certain values.
  Its value changes only by finite ‘jumps’. It ‘jumps’ from one value to another, but does not take any intermediate value.
• For example a variable like the number of girls iii a class’, for different classes. would assume values that are only hole numbers. It cannot take any fractional value like 0.5 because ‘half ola student’ is absurd.
• It takes a value change from loo to 101. 102 etc. hut fractions are not taken it i.e., there cannot be 100.1, 100.5 etc.
• Other examples for a discrete variable are population, number of cars. buses and number appearing on a dice.

Question 33.
Calculate median from the following data.

Answer:

Question 34.

Answer:

Calculation of cost of living Index or Consumer Price Index is calculated as follows:
CPI = \(\frac{\Sigma W P}{\Sigma W}=\frac{3922.5}{31}\) ⇒ CPI = 126.53
Comment: It means that there is a increase in prices by 26.53%.

VIII. Answer any four of the follow ing questions in twelve sentence each. ( 4 × 4=16 )

Question 35.
Explain the status of India’s Agriculture during British rule.
Answer:
Indian Economy under British rule remained agrarian. About 85% of the country’s population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. But, the agricultural sector continued to experience stagnation.

The agricultural productivity was very low though the area of cultivation expanded. The main reason was the land settlement system introduced by the colonial government. Under the zamindari system which was implemented in the then Bengal presidency comprising parts of India’s present day eastern states, the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. A considerable number of zamindars and colonial government did not improve the condition of agriculture. The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.

The terms of revenue settlement with zamindars made the zamindars to be strict in collecting land revenue from the actual cultivators even at the time of drought. This was mainly because, the zamindars were given dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.

Apart from these, low levels of technology, the lack of irrigation facilities and negligible use of , fertilizers w ere also equally responsible for bad status of agriculture during British rule.

Question 36.
Write a short note on Green Revolution?
Answer:
Green revolution refers to the spectacular increase in the agricultural production during 1960s. There was a large scale production of food grains resulting from the use of high yielding variety seeds especially wheat and rice. The use of these seeds required the use of fertilizer and pesticides in correct quantities as well as regular supply of water. The application of these inputs in correct proportions is very vital.

The farmers who could benefit from HYV seeds required reliable irrigation facilities as well ‘ as the financial support to purchase chemical fertilizers and pesticides. As a result, in the first phase of the green revolution during 1960s and 1970s, the use of HYV seeds was restricted to the more affluent states such as Punjab, Andhra Pradesh and Tamil Nadu.

Further, the use of high yielding variety seeds primarily benefitted the wheat growing regions only. During mid 1970s to mid 1980s, the HYV technology spread to a larger number of states and benefited more variety of crops. The spread of green revolution technology enabled India to achieve self-sufficiency in food grains; we no longer had to be at the mercy of America, or any other country for meeting our nation’s food requirements.

Question 37.
Explain the drawbacks of Agricultural marketing.
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India are as follows;

• Long chain of middlemen taking away the profit of fanners.
• No proper storage facilities to protect the agricultural products.
• Faulty methods of weighing/measuring agricultural crops.
• Manipulation of accounts.
• Farmers are forced to sell their products at low prices due to lack of information.

Question 38.
Explain the state of health infrastructure in India.
Answer:
From the time of independence, the Government of India has taken many steps to build vast health infrastructure and manpower at different levels.

They are as follows:

• At the village level, single – physician clinics popularly known as Primary Health Centres are established. Apart from regular medical treatments, They mainly focus on Infant Immunization, Anti epidemic drives, Birth – Control programs and pregnancy related care both pre-natal and post natal.
• Government has given licence to voluntary agencies and private sector to establish hospitals, pharmacy and nursing colleges manned by trained professionals and para¬medical professionals.
• Increase in the number of hospitals from 9300 to 43,300 and hospital beds from 1.2 million to 7.2 million by 2000.
• Private sector is playing predominant role in medical education and training, medical technology and diagnostics, manufacture and sale of pharmaceuticals, hospital construction and provision of medical services.
• Due to the liberalization policy of Government of India, many non-resident Indians and industrial and pharmaceutical companies have set up state-of-art super-specialty hospitals to attract India’s rich and medical tourists.
• The Indian systems of medicine includes six systems viz., ayurveda, yoga, unani, siddha, naturopathy and homeopathy (AYUSH). There are 3,000 ISM hospitals, 23,000 dispensaries and about 6,00,000 registered practitioners in India.

But, one of the studies reveals that India has about 17% of world’s population but it bears just 20% of the global burden of diseases (GBD).

In India, more than 50% of GBD is accounted by communicable diseases like diarrhoea, malaria and tuberculosis. Every year about 5,00,000 children die due to waterborne diseases.

It is also reported that only 38% of primary health centres have the required number of medical practitioners and only 30% of PHCs have the requisite medicines.

The people living in rural areas do not have sufficient medical infrastructure. There are only 0.36 hospitals for every lakh people in rural areas and in urban areas it is 3.6 for every lakh population.

Question 39.
Explain the function of environment.
Answer:
Environment refers to the totality of the physical conditions on the earth or a part of it. In other words, it refers to physical surroundings, conditions, circumstances, etc., in which a person lives.
Environment is defined as the total planetary inheritance and the totality of all resources and includes biotic (birds, animals and plants, forests, fishes) and abiotic (air, water, land, rocks and sunlight) factors.

The major functions of environment are as follows:

1. The environment supplies both renewable and non-renewable resources. Renewable resources are those resources that can be used again and again. There will be a continuous supply of resources. Example, water, forest, land etc.
Non-renewable resources are those which get exhausted with extraction and use. Example, mineral resources like petrol, coal, iron ore etc.

2. The environment assimilates waste. That means that environment absorbs the solid and liquid wastes created by humans and other living beings.

3. The environment sustains the life on earth by providing both genetic and bio-diversities.

4. Environment also provides aesthetic services like-beautiful scenery of forest lands, water falls, mountains like the Himalaya ranges, lagoons, glaciers, valleys, etc.

Question 40.
What are the various indicators of human development?
Answer:
The various indicators of human development are as follows:

•  Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. If the HDI is high it is good indicator of human development.
• Life expectancy at birth: It is the average number of years a person is expected to live. In other words, it is the longevity of life. A high value of life expectancy better indicates a qual ity human development.
• Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentages. The high literacy rate shows high human development.
• GDP per capita: The gross domestic product per head is also one of the indicators of human development. The high value of GDP per capita indicates a better human development.
• Infant mortality rate: It means the death of babies per thousand live births. If the IMR is high it indicates low human development.
• Maternal mortality rate: It shows the death of mothers per 1 lakh live births. If MMR is low, it indicates a better human development.
• Population using improved sanitation: If the percentage of population using improved sanitation is more, it is a good indicator of human development.
• Population with sustainable access to improved water sources: If the percentage of population using sustainable access to improved water source is high, it is a good indicator of human development.
• People living below poverty line: If less people are living below poverty line, then it is a good indicator of human development .
• Percentage of children undernourished: If the number of undernourished children is diminishing, then it is a good indicator of human development.

Section – D

X. Answer any two of the follow ing questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw a table and figure out it’s parts.
OR
For Blind Students: What is tabulation? What are the parts of table?
Answer:

Or

When data is represented in rows and columns, it is called tabulation. To construct a table, it is important to know the different components of a good statistical table. When all the components are put together systematically, they form a table.
Tabulation can be done using one way, two way or three way classification depending upon the number of characteristics involved. A good table should have the following parts:

• Table number: Table number is given to a table for identification purpose. If more than one table is presented, it is the table number that distinguishes one table from another. It is given at the top or at the beginning of the title of the table.
• Title: The title of the table gives about the contents of the table. It has to be very clear, brief and carefully worded, so information interpretations made from the table are clear and free from any confusion.
• Captions: These are the column headings given as designations to explain the figures of the column.
• Stubs: These are headings given to rows of the table. The designations of the rows are also called stubs or stub items and the left column is known as stub column.
• Body of the table: It is the main part and it contains the actual data. Location of any one data in the table is fixed and determined by the row and column of the table.
• Head note/Unit of measurement: The units of measurement of the figures in the table should always be stated along with the title. If figures are large, they should be rounded off and the method of rounding should be indicated.
• Source: It is a brief statement or phrase indicating the source of data presented in the table. If more than one source is there, all the sources are to be mentioned.
• Note: It is the last part of the table. It explains the specific feature of the data content of the table which is not self explanatory and has not been explained earlier.

Question 42.
Calculate the standard deviation for the following distribution.

Answer:
Calculation of standard deviation from mean

Question 43.
Calculate the co-efficient of rank correlation.

Answer:

Here, the number 35 repeated twice in V series and number 34 repeated thrice in ‘y‘ series, therefore in x, m – 2, in y m = 3, then apply formula
n = 8, ΣD² = 80.5

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Briefly explain the financial sector reforms.
Answer:
The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.

Question 45.
Examine the role of education in the Economic Development of a nation.
Answer:
The education plays a predominant role in economic development of India in the following ways:
1. It modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaviour of people. It gives inputs like what is right and what is wrong and contributes for taking sound and valuable judgments.

2. Promotes science and technology: Education always provides the knowledge about latest technology to people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. By providing scope for latest techniques of production, it develops agriculture, industry, transport, power, etc.

3. Increases mobility of labours: Education helps the labourers to search for more re¬warding employment opportunities all over the world. It helps to chooses a suitable career according to one’s educational qualifications. It makes them to move from country to country or state to state as and when required.

4. Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It provides information about the past events in History and tells about the freedom struggle of great national leaders like Mahatma Gandhi, Bhagath Singh, Subhas Chandra Bose and others. It makes people to develop a sense of patriotism and helps them to adopt strategies of progress in life.

5. Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. The general education includes Bachelor of Arts, Bachelor of Commerce, Bachelor in Business Administration, etc. at the degree level and technical education includes Bachelor in Engineering in different streams like mechanical, civil, electronic, electrical, computer, etc. All these contribute for the supply of skilled labour for the overall development of the country.

6. Act as source of knowledge: Education is a house of knowledge for all purposes. Anything to know we need to be literate. It helps people to take decisions on the basis of their knowledge gained in different stages while getting education .

7. Develops moral values: As education provides number of stories and incidents people’s lives, people can definitely develop moral values. These moral values are included in their daily life. Some of the moral values are not to sell adulterated products, in case of seller and in case of buyer, not to create inconvenience for others in their routine life and so on.

8. Creates awareness about culture and politics: Education always provides complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. It helps them to preserve the historical monuments, inscriptions and other valuable items. It also provides day-to-day information about politics when the person is literate.

Question 46.
What are the type of Unemployment? Discuss any two.
Answer:

1. Disguised unemployment,
2. Seasonal unemployment,
3. Open unemployment.
4. Under employment.
5. Technical employment.
6. Frictional employment.

1. Disguised unemployment: It is the of unemployment, where we can come across excess number of workers engaged in the some work but actually less number of workers required. For instance, suppose a farmer has four acres of land and he actually needs only two workers and half to carry out various operations on his farm in a year, but if he employs five workers and his family members such as his wife and children, this situation is called disguised unemployment.

2. Seasonal unemployment: It is the type of unemployment, where the rural people get employment only during a particular season. We have noticed that many people migrate to urban areas, pick up a job and stay there for some time, but come back to their home villages as soon as the rainy season begins. This is because work in agriculture is seasonal; there are not many employment opportunities in a village for all the months in a year. When there is no work to do on farms, people go to urban areas and look for temporary jobs. This is one of the instances of seasonal unemployment.

Section – E

XI. Answer any two of the following project-oriented questions. ( 2 × 5 = 10 )

Question 47.
As per recorded temperature, per two hours in a day from 6 a.m. to 6 p.m. calculate the range and mean temperature of a day.

Answer:

Question 48.
Suppose you are a resident of a village suggest a few measures to tackle the problem of the poverty.
Answer:

1. Swamajayanti Gram Swarozgar Yojana (SGSY)
2. Swamajayanthi Shahari RozgarYojana (SJSRY)
3. Pradhana Manthri Rozgar Yojana (PMRY)
4. National Food for Work Programme (NFWP)
5. Sampoorna Grameen Rozgar Yojana ( SGRY)
6. Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP)
7. Public Distribution System (PDS)
8. Integrated Child Development Scheme (ICDS)
9. Mid-day Meals Scheme
10. Pradhana Manthri Gram Sadak Yojana
11. Indira Awas Yojana
12. Valmiki Ambedkar Awas Yojana.

Question 49.
Identify the formal and informal workers in the following list
(a) A Petty Shop owner
(b) Handloom weaver
(c) S.B.I. Cashier
(d) A street vendor
(e) Government Hospital Nurse
(f) Government Primary School Teacher
(g) Tailor
(h) Revenue Inspector
(i) Police
(j) Agricultural labour.
Answer:
(a) Petty shop owner – informal worker
(b) Handloom weaver – informal worker
(c) SBI cashier – formal worker
(d) A street vendor – informal worker
(e) Government hospital nurse – formal worker
(f) Government primary school teacher – formal worker
(g) Tailor-informal worker
(h) Revenue inspector – formal worker
(i) Police – formal worker
(j) Agricultural labourers – informal workers.