BAL NIKETAN PUBLIC SCHOOL

Unit Test – II (2022 – 2023)

Subject: Economics
Class: XI
Date: 04.08.2022 Duration: 1Hours. 20 Min
No. of Pages: 02 M. Marks: 40
General Instructions:


All questions are compulsory.

The Question Paper contains FIVE sections.

Section A – Question no. 1 to 8 is MCQ and Objective Type Questions of 1 mark
each.
 Section B - Question numbers 9-12 carries 2 marks each. Answer to these
questions should not exceed 40 words each.
 Section C has a passage –based question number 13 carry 4 marks.
 Section D Question number 14 and 15 carries 4 marks. Answer to this question
should not exceed 100 words each.
 Section E Question numbers 16 and 17 carries 6 marks each. Answer to these
questions should not exceed 150 words each.
______________________________________________________________________

SECTION A
Q1 In which situation, can PPC be a straight line: (1)
(a) when MRT is decreasing
(b) When MRT is increasing
(c) When MRT is constant
(d) None of these
Q2 Identify the central problem which deals with the quantity of goods to be
Produced: (1)

(a) What to produce . (b) How to produce

(c) For whom to produce (d) none of these
Q3 Reason based statements: (1)
Read the following statements carefully. Writer ‘true’ or ‘false’ with a reason
(1) Study of cotton textile industry is a macroeconomics study.
(2) Problem of unemployment in India is a macroeconomics study.
Q4 what will happen to the PPF if there is technological upgradation in case of both
the goods? (1)
(a) Rightward shift of PPF (b) leftward shift of PPF
(c) Rotation of PPF (d) none of these
Q5 Assertion (A) and Reason Based (B) Statements: (1)
Assertion (A): statistics cannot calculate the qualitative aspects of economics
Reason (B): qualitative aspects are the aspects that influence the working of an
economy, through cannot be expressed in terms of money.
a) Both A and R are individually true but R is the correct explanation of A
b) Both A and R are individually true and R is not the correct explanation of A
c) A is true but R is false
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 d)A is false but R is true

Q6 “_________” and “________________” are the two essential economic activities

of an economy. (1)
Q7 Economics is the study of: (1)
(a) How society manages its unlimited resources
(b) How to reduce our wants until we are satisfied
(c) How society manages its scarce resources
(d) How to fully satisfy our limited wants
Q8 _____________ is the root of all economic problems. (1)

SECTION B
Q9 Distinguish between microeconomics and macroeconomics. (2)
Q10 State any two features of resources that give rise to an economic problem. (1+1)
Q11 What does the slope of PPF indicate? (2)
Q12 Categorise the following into quantitative and qualitative data:(4x½=2)
(1) Marks of students
(2) Honesty of employees
(3) Wages of workers
(4) Age of people
SECTION C
Read the following passage and answer the questions that follow: (4x1=4)
Q13. Activities involved in production (Manufacturing), distribution
(transportation) and consumption (retail) are constantly seeking
economies to improve their competitiveness and increase their
market share. The consumption of goods and services is a primary
component of economic well-being and, as such, a primary indicator
of living standards. Wealth and income are available to support
consumption, today and in the future. Production, in the market and
at home, supports consumption.
Economies of transportation relate to the benefits that lower transport
costs may grant to specific activity sectors and are derived from a
locational choice. For production, it relates to a location that
minimizes total transport costs and thus lowers production unit costs.
Some are elements of transport costs in production while others are
elements of transport costs in consumption.
Economies of scope relate to the benefits derived by expanding there
range of goods and services. For production, they are commonly
based on product diversification and flexible manufacturing systems
able to produce a variety of products in view of changes in the
demand and consumer preferences.
For distribution, economies of scope are very important and
commonly achieved when a transporter is able to bundle several
different loads into fewer loads. For consumption, activities offering a
wider range of goods or services are usually able to attract more

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 customers since they have more choices. Economies of scope and
economies of scope are highly related.
(1) State whether the given statement is true or false:
Establishing a dairy for producing milk products for consumers which
Turns to be a method of earning wealth is an example of economic
activity.
(a) True
(b) False
(2) Fill up the blank with correct alternative
Economic is a ……….. Science which studies economic behaviour of a
Man.
(a) Social
(b) Physical
(c) Both (a) and (b)
(d) None of these
(3) Assertion (A): Economies of scale and economies of scope are highly
related.Reason (R): Both economies of scale and economies of scope
Result in the saving in cost. Select the correct alternative from the
Following:
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(4) When we want to know how the consumer decides, given his income and
many alternative goods to choose from what to buy when he knowsthe prices.
This is the study of…………………………
(a) Production
(b) Consumption
(c) Both (a) and (b)
(d) None of above

SECTION D
Q14 Draw a PPF showing the following situations: (4)
(a) Full employment of resources
(b) Underemployment of resources
(c) Growth of resources
(d) Advancement of technology
OR
How is statistics important for studying economics?
Q15. (1)An economy produces two goods: watches and shoes. The following table
summarises its production possibilities. Calculate the marginal opportunity costs
of watches at various combinations. (2+2)

Watches(in millions) Shoes( in thousands)

0 90000
1 80000
2 68000
3 52000
4 34000
5 10000

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(2) A farmer produces 100 kg of wheat on a piece of land with the help of a given
quantity of resources. If this farmer can also produce 70 kg of rice with the same
quantity of resources, then what is the opportunity cost of producing wheat?
SECTION E
Q16 The following table depicts the production possibilities of commodities x and y:
(6)
Possibility A B C D E
Commodity x 0 1 2 3 4
Commodity y 10 9 7 4 0

(A) Show these production possibilities through PPF. What do the points on the
curve indicate?
(B) Label a point F inside the curve. What does this point indicate?
(C) Label a point G outside the curve. What does this point indicate?
(D) What must occur so that the economy can attain the level of production as
indicated by point G.? (6)
Q17 (1) Distinguish between ‘statistics in singular sense’ and ‘statistics in plural
Sense’
(2) Discuss the importance of statistics in economic planning.
OR
(1) What is opportunity cost? Explain with the help of numerical example.
(2) Explain the central problem of ‘how to produce ‘

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