1st PUC Economics Model Question Paper 4 with Answers

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Karnataka 1st PUC Economics Model Question Paper 4 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.
Economics is the study of mankind in ___________ of life.
(a) The ordinary business
(b) The weekly business
(c) special business
(d) extraordinary business
Answer:
(a) The ordinary business.

Question 2.
Range is ___________
(a) A difference between the largest and the smallest values of variables.
(b) Average of the largest and the smallest observations
(c) Ratio of the largest to the smallest values of variable.
(d) None of the above
Answer:
(a) A difference between the largest and the smallest values of variables.

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

Question 4.
In pre-independent period India, he was the first to discuss the concept of poverty ___________.
(a) DadabaiNavroji
(b) Gopalakrishna Gokhale
(c) Vinobhabhave
(d) Vonobabai
Answer:
(a) Dadabai Navroji.

Question 5.
GDP stands for ___________.
(a) Gross Domestic product
(b) Gross Domestic Price
(c) None of the above
(d) Gross Dollor Price
Answer:
(a) Gross Domestic product.

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Third quartile and ___________ percentile are the same.
Answer:
75

Question 7.
Inflation affects the ___________ of common people.
Answer:
Cost of living.

Question 8.
___________ is the year of second stage of demographic transition of India.
Answer:
1921.

Question 9.
Chairperson of Planning Commission ___________ .
Answer:
Prime Minister.

Question 10.
Taxes on Income of individuals is called ___________ .
Answer:
Direct tax.

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

Question 11.

Answer:
1 – 5
2 – 3
3 – 1
4 – 4

IV. Answer the following questions in a word sentence: ( 1 × 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.
Why do we need statistical tools?
Answer:
Statistical tools are needed in our daily life and are used in the analysis of data pertaining to economic activities such as production, consumption, distribution, banking and insurance, trade, transport, etc.

Question 14.
Identify the state, which has achieved excellency in literacy.
Answer:
Kerala.

Question 15.
Expand C.N.G.
Answer:
Compressed Natural Gas.

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

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:
Refer Belgaum District Annual Examination Question Paper-2, Q.No. 17.

Question 18.
What are four kinds of classifications used in tabulation?
Answer:
The four kinds of classifications used in tabulation are as follows:

1. Qualitative classification
2. Quantitative classification
3. Temporal classification
4. Spatial classification.

Question 19.
What is median? How do you compute it?
Answer:
Median is that positional value of the variable which divides the distribution into two equal parts. It is the middle element when the data set is arranged in order of the magnitudes. Median can be computed with the help of following formula:
Median = Size of \(\frac{(\mathrm{N}+1)^{t h}}{2}\) item.

Question 20.
Write the merits of arithmetic mean.
Answer:
The following are the merits of arithmetic mean

• It is simple to understand and easy to calculate.
• It gives certainty.
• It considers all observations in computing.
• It is a convenient method of comparison.

Question 21.
Mention different techniques for measuring correlation.
Answer:
There are three important techniques used to measure correlation. They are as follows:

• Scatter diagrams.
• Karl Pearson’s coefficient of correlation.
• Spearman’s rank correlation.

Question 22.
Write the first four steps in developing a project.
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 was the objective of the economic policies pursued by the colonial Government of India?
Answer:
The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country rather than with the development of the Indian economy.

The impact of such policies made a fundamental change in the structure of the Indian economy i.e., transforming the country into a supplier of raw materials and consumer of finished industrial products from Britain.

Question 24.
Mention the economic activities confined to public sector in pre independence India.
Answer:
The public sector was confined to railways, power generation, communications, ports and some other departmental undertakings.

Question 25.
What is Fiscal policy?
Answer:
Fiscal policy is the policy of the government in respect of taxation and public expenditure. Tax reforms are concerned with the reforms in government’s taxation which we term generally public revenue which also includes non-tax revenue. Fiscal policy includes public revenue and public expenditure. The tax revenue consists of direct tax and indirect tax.

Question 26.
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 27.
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 of 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

Question 28.
Write any two threats to environment in our country.
Answer:
The major threats of environment in India are as follows diseases.

• Threat of poverty induced environmental degradation.
• Threat of pollution from the rapidly growing industrial sector, air pollution, water contamination, soil erosion, deforestation and wildlife extinction.

Question 29.
Write two implications of the “One child norm” in China.
Answer:
The important implications of one child norm for China are as follows:

• It has successfully reduced the growth rate of population.
• After a few decades in China, there will be more elderly people in proportion to young people.
• This will force China to take steps to provide social security measures with fewer workers.

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 surveys.

Question 31.
The monthly income of 7 families in a certain area given below.

Calculate the Arithmetic mean by (a) Direct method (b) Assumed mean method.
Answer:
(a) Direct method:

(b) Assumed mean method:

Question 32.
The yield of Rice per acre for 10 districts of a state is an under

Calculate Quartile Deviation (QD).
Answer:
QD for rice: Arrange the given observations in the ascending order.
x: 12 12 12 15 18 18 22 23 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 33.
Draw Scatter diagram and Interpret.

Answer:

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

Question 34.
Write a note on SENSEX.
Answer:
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the Sensex is with reference to this period. It is the benchmark index for the Indian stock market. It consists of 30 stocks which represent 13 sectors of the economy and the companies listed are leaders in their respective industries. If the Sensex rises, it indicates that the market is doing well and investors expect better earnings from companies. It also indicates a growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large, well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is widely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

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

Question 35.
Give the meaning and the importance of small-scale industries.
Answer:
A small scale industry is defined with reference to the maximum investment allowed on the assets of a production unit. A small scale industry is one where the investment is less than * one crore rupees.

Small scale industries play a very important role in the economic development of India. It is a known fact that small scale industries are more labour intensive i.e., they use more labour than the large scale industries and therefore, generate more employment.

Apart from the above, the small scale industries require less capital as they are small units. They are free from industrial unrest. They also depend on indigenous resources and need not depend on foreign resources. Small scale industries were also given concessions like lower excise duty and bank loans at lower interest rates.

Question 36.
Write a note on W.T.O.
Answer:
The World Trade Organisation was founded in 1995 as the successor organization to the General Agreement on Trade and Tariff which was established in 1948.
The main objectives of WTO are as follows:

• To establish a rule based trading system in which nations cannot place arbitrary restrictions on trade.
• To enlarge production and trade of services.
• To ensure optimum utilisation of world resources.
• To protect the environment.

The various WTO agreements cover trade in goods and services to facilitate international trade i.e., both bilateral and multilateral, through removal of tariff and non-tariff barriers and providing greater market access to all the member countries.

India, being a founder member, has been in the main frame in framing fair global rules, regulations and safeguards and advocating the interests of the developing world. India has kept its commitments towards liberalization of trade, made in the WTO, by removing quantitative restrictions on imports and reducing tariff rates.

But, some economists argue that the usefulness of WTO to India is not much when compared to developed countries. The major portions of benefits are enjoyed by the rich countries. They also say that while developed countries file complaints over agricultural subsidies given in their countries, developing countries feel cheated as they are forced to open up their markets for developed countries but are not allowed to access the markets of developed countries, which is totally unfair to Indian producers.

Question 37.
Briefly explain the financial sector.
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.
Analyze the recent trend in sectoral distribution union of work force in India.
Answer:
The sectoral distribution of work force in India canbe explained with the help of the following table:

Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only about 24% of workforce. About 27% of workers are in the service sector. The above table shows that about 64% of the workforce in rural India depend on agriculture, forestry and fishing. About 20% of rural workers are working in manufacturing industries, construction and other industrial activities. Service sector provides employment to only about 16% of rural workers.

Agriculture is not a major source of employment in urban areas where people are mainly engaged in the service sector. About 60% of urban workers are in the service sector. The secondary sector gives employment in about 35% of urban workforce.

Question 39.
Explain the role of Infrastructure in the development of modern economics.
Answer:
The infrastructure helps the modern economy as follows:

• It supports the system for efficient working of industrial sector.
• It encourages speedy development of agricultural sector.

The agriculture and other industries largely depend on infrastructure. Transportation of seeds, pesticides, fertilizers and the produce using modem roadways, railways and shipping facilities help in development of agriculture which leads to development of an economy:

• Infrastructure contributes to the economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.
• Improvements in water supply and sanitation have a large impact on reducing morbidity i.e., being prone to illness, from major waterborne diseases and reducing the severity of disease when it occurs.
• The transport and communication also influence the health care facilities.

Question 40.
What similar development strategies have India and Pakistan follows for their respective development paths.
Answer:
India and Pakistan have been following similar developmental strategies for their respective developmental paths. They are as follows: ’

• Both the countries have started their path of economic development after 1947 by starting five year plans. India started its first five year plan in 1951 and Pakistan started in 1956.
• Both the countries are following mixed economic system.
• Both the countries have given importance to public sector with huge investments.
• Both the countries introduced economic reforms rear about the same time, India in 1991 and Pakistan in 1988.
• Both the countries have adopted economic policies as per the instructions of IMF.

Section – D

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

Question 41.
Prepare tally marking chart for the marks in Economics scored by 70 students in an examination.

Answer:

Question 42.
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 43.
Calculate the standard deviation and variance for the following distribution method.
Answer:

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

Question 44.
Explain the causes of poverty.
Answer:
The major causes for poverty in India are as follows:

1. Unemployment: Poverty is closely related to nature of employment, unemployment and underemployment. A large section of urban and rural poor are unable to get proper income generating employment opportunities. The industrialization has failed to absorb the unemployed youths in India. Casual labourers are most vulnerable as they do not have job security, no assets and have limited skills.

2. Inflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

3. Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is wide gap between the rich and the poor, where the poor are unable to get opportunities to come out of poverty line.

4. Negative impact of British rule indian economy: During British rule there was de-industrialisation. The import of cotton textiles displaced many Indian producers. More than 70% of Indians were engaged in agriculture throughout British period. As the British made India a market for their finished products, Indian merchants incurred huge losses due to their inability to compete with the low priced products of Britain imported to India. Our natural resources were overexploited by the British and foodgrains were exported. Many Indians died due to famine and hunger. So, this had continued even after independence.

5. Unequal distribution of income and wealth: There is a large scale unequal distribution of income and wealth in India. The wealth is concentrated in the hands of a few individuals. Though the Government had tried to redistribute land among the landless agricultural labourers to reduce the magnitude of poverty, it was successful only to a limited extent as large sections of agricultural workers were not able to cultivate small land holds due to shortage of money or lack of skills to make the land productive and the land holdings were too small.

6. Lack of skills and knowledge: Most of the people who belong to backward communities are not able to participate in the emerging employment opportunities in different sectors of urban and rural economy due to their ignorance and illiteracy. Many of the schedule caste and schedule tribe people do not have necessary knowledge and skills in this regard.

7. Excess population: The excess population in India is also one of the causes for poverty’. The supply of labourers is more than demand for labour. The employment generation is than the growth rate of population in India. The government is struggling hard to provide basic amenities due to rapid growth of population in India.

8. Other causes for poverty are:

• Social and political inequality
• Social exclusion
• Indebtedness (excessive borrowings of loans)
• Low capital formation
• Lack of infrastructure
• Lack of effective demand
• Inefficient and corrupt administration.

Question 45.
Discuss the following as a source 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.
Explain the measures taken by the Government to improve the Agricultural marketing system.
Answer:
The Government of India has undertaken to improve agricuIturaI market in india. They arc as follow:

1. Establishment of regulated markets: The regulated markets are those markets which are controlled and managed by the government to provide orderly and transparent marketing conditions like better storage facilities, fair prices, removing middlemen, etc. This has benefited many farmers and consumers.

2. Provision of infrastructural facilities: The provision ofphysical infrastructural facilities like roads, railways, warehouses, godowns. cold storages and processing units will make agricultural sector a commercial and profit-oriented sector in India. The current infrastructural facilities are not adequate.

3. Establishment of Cooperative Marketing Societies: These societies are encouraged by the government to realize fair prices for agricultural products and ensure better income to the farmers. The success of Milk Cooperative Societies in transforming the social and economic conditions of Gujarat is worth mentioning.

4. The other measures are: ‘

• Assurance of minimum support prices (MSP) for agricultural products to sate guard the farmers from losses.
• Maintenance of buffer stocks of wheat and rice by the Food Corporation of India.
• Distribution of essential commodities like wheat, rice, sugar and kerosene under Public Distribution System.

Section – E

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

Question 47.
Assume you are a research student and your are asked to conduct a sample survey about mid day meals programme in schools. Prepare a good questionnaire to support your survey.
Answer:

Question 48.
Identify the formal and informal workers in the following list:
(a) Petty shop owner
(b) Handloom weaver
(c) SBI Cashier
(d) A street vender
(e) Government hospital nurse
(f) Government 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.

Question 49.
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.