1st PUC Economics Model Question Paper 2 with Answers

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Karnataka 1st PUC Economics Model Question Paper 2 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.
The long queues at railway station, bus stand, cinema theatres are all manifestations of __________.
(a) Publicity
(b) Scarcity
(c) Plenty
(d) Quantity
Answer:
(b) Scarcity.

Question 2.
The method of collection of data in which reactions can be watched is __________.
(a) Telephone interview
(b) Mailing questionnaire
(c) Personal interview
(d) E-mail
Answer:
(c) Personal interview.

Question 3.
During British rule more than half of India’s foreign trade was restricted to __________.
Answer:
(a) Britain.

Question 4.
Poverty line separates __________.
(a) Poor and non-poor
(b) Rich and non-rich
(c) Poor and weaks
(d) Non of the above
Answer:
(a) Poor and non-poor.

Question 5.
India’s literacy rate in 2013 __________.
(a) 70%
(b) 71%
(c) 74%
(d) 73%
Answer:
(c) 74%

II. Fill in the blanks:

Question 6.
In __________ method of classification upper limit of a class is included.
Answer:
Inclusive.

Question 7.
Component Bar diagrams are also called __________.
Answer:
Sub-bar diagrams.

Question 8.
The construction workers are known as __________.
Answer:
Casual wage labourers.

Question 9.
Indian system of Medicine includes __________.
Answer:
6

Question 10.
The great leap forward campaign was initiated in the year __________.
Answer:
1958.

III. Match the Following:

Question 11.

Answer:
1 – 3
2 – 1
3 – 5
4 – 2
5 – 4

IV. Answer the following questions in a word sentence: ( 1 x 5 = 5 )

Question 12.
What is dispersion?
Answer:
Dispersion refers to the extent to which values in a distribution differ from the average of the distribution

Question 13.
Write the formula for Spearmain’s rank correlation.
Answer:
\(\mathrm{R}_{\mathrm{s}}=\frac{6 \Sigma \mathrm{D}^{2}}{\mathrm{N}^{3}-n}\)

Question 14.
Expand GATT.
Answer:
General Agreement on Tariffs and Trade.

Question 15.
What is infrastructure?
Answer:
Infrastructure is a network of physical facilities and public services which act as important base for economic and social development of the country.

Question 16.
Mention the major reason for the low population growth in China.
Answer:
The major reason for the low population growth in China was the introduction of one child norm.

Section – B

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

Question 17.
Write the differences between Census and Sample Survey.
Answer:

Census	Sample Survey
(a) It includes every element of the population,	(a) Here a representative sample is taken for survey.
(b) There may not be accurate information.	(b) Provide reasonably reliable and accurate information.
(c) It is expensive.	(c) It is cheap and cost effective.
(d) It is time consuming.	(d) It takes less time.

Question 18.
Give the formula to find out mid point.
Answer:
The formula to find out midpoint is as follows:

Question 19.
Write the meaning of temporal classification with an example.
Answer:
Temporal classification is one in which the classification of data is done on the basis of time.
Example: hours, days, weeks, months, years, decades, etc.

Question 20.
What are the types of measures of central tendency?
Answer:
There are three types of measures of central tendency viz., mean, median and mode.

Question 21.
Mention which type of correlation is associated with
(a) Production and price of vegetable
(b) Temperature and sale of ice-cream.
Answer:
(a) There is a negative correlation between production and price of vegetables. If the production of vegetables increases, which leads to increase in supply, it will result in decrease in price of vegetables.
(b) There is a positive correlation between temperature and sale of ice creams. If the temperature increases, there will be an increase in the sales of ice creams and vice versa.

Question 22.
Write the first four steps in developing a project.
Answer:
Following are the four steps in developing a project:

• Identifying a problem or an area of study,
• Collection of data.
• Choice of target group.
• Organisation and presentation of data.

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

Question 23.
List out the important export goods of India before Independence.
Answer:
The important export goods of India before independence were raw silk, cotton, wool, sugar, indigo, jute, etc.

Question 24.
List the factors that prevent the successful implementation of poverty alleviation programmes.
Answer:
The eminent scholars, while assessing the poverty alleviations programmes, state these major areas of concern which prevent their successful implementation. They are as follows:

• The benefits from direct poverty alleviation programmes have been appropriated by the non-poor.
• The amount of resources allocated for poverty alleviation programmes is not sufficient
• These progrmmes depend mainly on government and bank officials for their implementation. These are ill motivated, inadequately trained, corruption prone and vulnerable.
• The resources are inefficiently used and wasted.
• There is also non-participation of local level institutions in programme implementation.

Question 25.
What are the indicators of educational achievement in a country?
Answer:
The indicators of educational achievements are as follows:

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

Question 26.
Give two examples for alternative market.
Answer:
The examples for alternative market are:

• Rythara Santhe in Karnataka,
• Rythu Bazaar in Andhra Pradesh (Vegetable and Fruit markets)
• Apni Mandi in Punjab, Haryana and Rajasthan.

Question 27.
Why does rural work force migrate to urban areas during some part of the year?
Answer:
Many people migrate to an urban area, 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 mainly because work in agriculture is seasonal there are no employment opportunities in the village for all the months in the year. So, when there is no work to do on farms, people go to urban areas and look for jobs.

Question 28.
What is the meaning of global burden of diseases?
Answer:
The global burden of diseases is an indicator used by experts to gauge the number people dying prematurely because of a particular disease and the number of years spent by the people in a state of disability owing to disease, during a given period of time.

In India, more than half of global burden of disease is accounted for by communicable diseases like diarrhea, malaria and tuberculosis. Every year around 5 lakh children die of waterborne ‘ diseases.

Question 29.
Mention any four functions 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.

Section – C

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

Question 30.
Scarcity is the root of a economic problem’s explain the statement.
Answer:
It is true that the scarcity is the root of all economic problems. If there had been no scarcity there would have been no economic problem. This would have not necessitated the study of economics.

In our daily life, we face various forms of scarcity. The queues at the railway booking counters, overcrowded buses, heavy traffic on roads, the rush to get a ticket to watch a movie of a popular film actor or actress, are all the manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.

Further, the resources which the producers have are limited and also have alternative uses. For instance, take the case of food that we eat everyday. It satisfies our want of nourishment

Farmers employed in agriculture grow crops that produce our food. At any point of time, the resources in agriculture like land, labour, water, chemical fertilizers, etc, all these resources have alternative uses. The same resources can be used in the production of non-food crops. Thus, alternative uses of resources give rise to the problem of choice between different commodities that can be produced by those resources.

Question 31.
Do sample’s provide better results than surveys? Give reasons for your answer.
Answer:
Yes, samples survey provide better results than census.
A sample refers to a group or section of the population from which information is to be obtained. A good sample is generally smaller than the population and is capable of providing reasonably accurate information about the population at a much lower cost and shorter time.

Suppose you want to study the average income of people in a particular state, according to the census method, we need to find out the income of every individual in the region, add them up and divide by number of individuals to get the average income of people in the state. This method would require huge expenditure, as a large number of investigators are to be employed. Alternatively, if a representative sample of few individuals is selected from the state to find their income, it saves time, money and energy in the process of determination of income.

To sum up, sampling is considered a better method due to following reasons:

1. It is more economical than the other techniques of collection of data.
2. Sample investigation can be done at a greater speed as it consumes less time.
3. When sampling is conducted scientifically and carefully, it gives accuracy.
4. Planning, organization and supervision can be conveniently managed which leads to administrative convenience.

Question 32.
What is ‘loss of information’ in classified data?
Answer:
In classification of data, summarizing the raw data, making it concise and comprehensible, does not show the details that are found in a raw data. There is a loss of information in classifying raw data though much is gained by summarizing it as a classified data. Once the data are grouped into classes, an individual observation has no significance in further statistical calculations. This is known as loss of information in classified data.

For example, supposeclass 100-200 contains 6 values viz., 120,150,160,140,180, 190. When such data is grouped as a class 100-200, then individual values have no significance and only frequency i.e., 6 is recorded and not their actual values. All values in this class are assumed to be equal to the middle value of the class-interval or class mark. Statistical calculations are based only on the values of class mark instead of the actual values. As a result, it leads to considerable loss of information.

Question 33.
The yield of rice per acre for 10 districts of a state is as under.

Calculate Quartile Deviation (Q. D.)
Answer:
QD for rice: Arrange the given observations in the ascending order.
x: 12 12 12 15 18 182223 29 34
Calculation of lower quartile (Q₁):

The size of 2.75^th item = size of 2^th item + 0.75 item
(0.75 item size of 3^rd item – size of 2^nd item)
Q₁ = 12 + 0.75(12 – 12)
Q₁ = 12 + 0.75(0)
Q₁ = 12

Calculation of upper quartile (Q₃ ):

The size of 8.25^th item = size of 8^th item + 0.25 items
(0.025 item = size of 9^th item – size of 8^th item)
Q₃ = size of 8.25^th item
Q₃ = 23 + 0.25 (29 – 23) = 23 + 0.25 (6) = 23 + 1.5
Q₃ = 24.5.

Question 34.
Draw Scatter diagram and interpret.

Answer:

Interpretation: There is a perfect positive correlation between X and Y.

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

Question 35.
The traditional handcraft industries were ruined under British rules justify this statement.
Answer:
Yes, the traditional handicrafts industries were ruined under the British rule. The decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods.

The British imposed heavy’ duties on Indian handicrafts, so that they became more expensive than British woolen and silk manufacturers. They followed a policy of duty free export of raw materials and import of finished goods. Apart from these, Indian handicrafts had to face competition from machine made goods from Britain.

India could not develop a sound industrial base under the colonial rule. Even as the country’s world famous handicraft industries declined, no corresponding modern industrial base was allowed to come up to take pride of place so long enjoyed by the Indians. The intention of British was to reduce India to the status of a mere exporter of important raw7 materials for the upcoming modem industries in Britain and to turn India into a market for their finished products of those industries, so that their continued expansion could be ensured to the maximum advantage of their home country.

Question 36.
Write a short note on land reforms in India.
Answer:
Land reforms refer to changes in the ownership of land holdings. At the time of independence, the land tenure system was characterized by intermediaries like zamindars, jagirdars etc., who were just indulged in collecting rent from the actual cultivators without contributing towards improvements on the agricultural land. The low productivity of the agricultural sector forced India to import food from USA. At this juncture, the land reforms were introduced.

After introduction of land reforms, steps were taken to abolish intermediaries and to make the tillers the owners of land. The idea behind this move was that ownership of land would give incentives to the tillers to invest in making improvements provided sufficient capital was made available to them. Abolition of zamindari system and ceiling on land holdings were the major ‘ land reforms introduced immediately after independence.

Question 37.
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 38.
Explain the drawbacks of agriculture 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 39.
Explain the consumption pattern of commercial energy in India.
Answer:
In India, commercial energy consumption makes up about 65% of the total energy consumed. This includes coal with 55% of shares which is the largest one. The coal is followed by petroleum products at 31%, natural gas at 11%, hydroelectricity at 3%.

The non-commercial energy sources consisting of firewood, cow dung and agricultural wastes account for 30% of the total energy consumption.

In the sectoral pattern of consumption of commercial energy, the transport sector was the largest consumer of commercial energy. But now. there is a fall in the share of transport sector and the share of industrial sector is increasing. The share of petroleum and natural gas is the highest among all commercial energy consumption.

Question 40.
Write 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 

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

Question 41.
What is tabulation? What are the parts of a table? Explain.
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 arithmetic mean by direct, assumed mean and step deviation methods for the following data: 40, 50, 55, 78, 58.
Answer:

Question 43.
The Yield of wheat per acre for 10 districts of a state is as under.

Calculate Standard deviation and coefficient variation.
Answer:

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

Question 44.
Briefly explain the effects of reforms on agricultural sector.
Answer:
The economic reforms of 1991 have not been able to benefit agriculture, where the growth rate is not up to the expected level.
The public sector investment in agricultural sector, particularly in infrastructural development like irrigation, power, roads, market linkages and research and extension has fallen during in the reform period.
The removal of fertilizer subsidy has led to an increase in the cost of production, which has severely affected the small and marginal farmers.

This sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, removal of minimum support price and lifting of quantitative restrictions on agricultural products. These have adversely affected Indian farmers as they now have to face increased international competition.

Further, due to export oriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in steel of production of food grains. This has resulted in increase in an prices of food grains.

Question 45.
Discuss the follow ing as a sources of human capital formation.
(a) Health Infrastructure
(b) Expenditure on migration.
Answer:
(a) Health infrastructure:
The various forms of health expenditures are as follows:

• Preventive medicine vaccinations to prevent deadly diseases.
• Curative medicine obtaining medical treatment during illness.
• Social medicine spread of awareness about keeping good health and its importance.

Provision of clean drinking water and good sanitation. The healthy individuals are a food source of human capital as they directly contribute for regular and higher productivity of labour. A sick labourer without access to medical facilities has to remain absent from work. This leads to loss of productivity. Hence, expenditure on health is an important source of human capital formation.

(b) Expenditure on migration: People migrate from their native places in search of jobs which may bring higher salaries. Unemployment is the only reason for rural-urban migration in India. Technically qualified persons like engineers and doctors migrate to other countries to earn better income. Though there is a high cost of transport, high cost of living and other factors, the enhanced income will motivate people to migrate. Hence, expenditure on migration is also a source of human capital formation.

Question 46.
What role does the government play in generating employment opportunities in India?
Answer:
Government is making efforts to generate employment opportunities to unemployed persons through two categories i.e., direct and indirect.
In the first category, government is directly providing job opportunities by employing people in various departments for administrative purposes, industries, hotels, transport corporations etc. In the second category, Government had introduced a New Economic Policy in 1991 in the form of LPG i.e., Liberalization, Privatisation and Globalisation which has provided ample opportunities to private entrepreneurs to start their own production centre which are creating employment opportunities to millions of people in India.

Further, when output of goods and services from government enterprises increase, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For instance, when a government owned steel company increases its output, it will result in direct increase in employment in that government company, simultaneously, private companies, which purchase steel from it will also increase their output and thus employment. This is indirect generation of employment opportunities by the government initiatives in the economy.

There are many programmes that the successive governments have implemented to alleviate poverty through employment generation. They are known as Employment Generation Programmes. They are as follows:

Self-employment programmes: The major Self Employment Programmes are:

1. Swamajayanti Gram Swarozgar Yojana (SGSY): This programme aims at providing financial assistance to self help groups which then decide whom the loan is to be given to for selfemployment activities among the members.

2. Swamajayanthi Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities, for both selfemployment and wage employment opportunities in urban areas. Under self employment programmes, financial assistance is given to families or individuals. Now, programmes are encouraged to form self help groups.

3. Pradhana Manthri Rozgar Yojana (PMRY): The educated unemployed from low income families in rural and urban areas can get financial help to set up some enterprise that generates employment under this scheme.

Wage employment programmes: The major national programmes to generate wage employment are as follows:

• National Food for Work Programme (NFWP)
• Sampooma Grameena Rozgar Yojana (SGRY)
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): It provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days in a year.

All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, assistance for constructing houses, laying of rural roads, development of wastelands.

Section – E

XI. Answer any two of the following project oriented questions. ( 2 x 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.
Prepare a list of causes of land degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing mainly due to the factors mentioned below :

• Deforestation, i.e. reckless cutting down of trees resulting in loss of vegetation.
• Indiscriminate and over exploitation of forest products such as fuel wood and over grazing.
• Conversion of forest lands into agricultural lands.
• Forest fire and faulty methods of cultivation.
• Excessive application of pesticides and insecticides.
• Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
• The irrigation systems in India are not properly planned and managed.
• Over exploitation of ground water for various competing utilities like human settlement, industrialization, etc.
• No proper introduction of crop rotation techniques and organic farming.
• Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

Land is indispensable for human settlement. If proper care is not taken for the conservation of land and water, there shall be severe scarcity of water and natural resources in future which may lead to conflict among the countries.

Question 49.
Group the following features pertaining to the economies of India, China and Pakistan under three heads.
(a) Single child norm.
(b) low fertility rate.
(c) High rate of Urbr
(d) Mixed Economy.
(e) High fertility rate.
(f) Large Population.
(g) High density of population
(h) Growth due to manufacturing sector.
(i) Growth due to service.
(j) Low rate of literacy.
Answer: