1st PUC Economics Previous Year Question Paper March 2019 (South)

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Karnataka 1st PUC Economics Previous Year Question Paper March 2019 (South)

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

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Scarcity is the root of
(a) All economic problems
(b) Social problems
(c) Political problems
(d) All problems
Answer:
(a) All economic problems.

Question 2.
Which method of collection of data gives better results?
(a) Census
(b) Innovation
(c) Sample Survey
(d) Distribution
Answer:
(c) Sample Survey

Question 3.
The present life expectancy of India is
(a) 32.4 years
(b) 63.5 years
(c) 64.8 years
(d) 66.9 years.
Answer:
(d) 66.9 years

Question 4.
Which is not the goal of five year plan
(a) Growth
(b) Modernisation
(c) Self-efficiency
(d) Self-reliance
Answer:
(c) Self-efficiency

Question 5.
The, act provides guaranteed wage employment to every poor house hold for minimum of 100 days in a year is called
(a) PMRY
(b) SJSRY
(c) MGNREGA
(d) SGSY
Answer:
(c) MGNREGA

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Two ends of a class are called __________.
Answer:
Class limits.

Question 7.
Body of the table contains __________.
Answer:
Actual data.

Question 8.
RBI regulates __________ sector.
Answer:
Financial.

Question 9.
Infrastructure facilities can be classified into __________ types.
Answer:
Two.

Question 10.
The construction workers are known as __________.
Answer:
Casual wage labourers.

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

Question 11.

Answers:
1 – (e)
2 – (a)
3 – (b)
4 – (c)
5 – (d)

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.
Mention the last step in developing project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
ILO – Expand.
Answer:
International Labour Organisation.

Question 15.
Which country has the highest life expectancy?
Answer:
China.

Question 16.
What type of economic system is followed in Pakistan?
Answer:
Mixed economy.

Section – B

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

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

Question 18.
Write a note on classification of data.
Answer:
The raw data is classified in various ways depending on the purpose. Generally data can be classified as follows:

• Chronological classification: When the data is grouped according to time, it is called as chronological classification. In such a classification, data are classified either in ascending or in descending order with reference to time such as years, quarters, months weeks days, etc.
• Spatial classification: If the data are classified with reference to geographical locations such as countries, states, cities, districts, etc., it is called spatial classification.
• Qualitative classification: When the data are classified on the basis of certain attributes or qualities like literacy, religion, gender, marital status etc., then it is called qualitative classification. These attributes can be classified on the basis of either the presence or the absence of a qualitative characteristic.
• Quantitative classification: If the classification of data is done on the basis of certain characteristics like height, weight, age, income, marks of students etc., it is called as quantitative classification.

Question 19.
What is quantitative classification? Given an example.
Answer:
When the data is classified on the basis of certain characteristics like height, age, income etc., it is called as quantitative classification of data.

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.
What is negative correlation? Give example.
Answer:
The correlation is said be negative the variables move in opposite directions.
Example:

• When the price of tomato increases, the demand for tomato decreases.
• More is the time spent for studies, less are the chances of failure.

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.
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.
Name the states where poverty level is for above the national poverty level.
Answer:
The states where poverty level is far above the national poverty level are:
Odisha, Madhya Pradesh, Bihar and Uttar Pradesh.

Question 25.
What factor contributes to human capital formation?
Answer:
The factors which contribute to human capital formation are as follows:

• Expenditure on education
• Expenditure on health
• Expenditure on training
• Expenditure on information
• Migration

Question 26.
Name the institutional sources of rural credit.
Answer:
The institutional sources of rural credit are as follows:

• Commercial Banks
• Regional Rural Banks (RRBs)
• Cooperative Societies
• Land Development Banks.

Question 27.
Name any four kinds of unemployment.
Answer:
The kinds of unemployment are as follows:

1. Open unemployment
2. Disguised unemployment
3. Seasonal unemployment
4. Underemployment
5. Technical unemployment
6. Frictional unemployment

Question 28.
Which are the components of Indian systems of medicine?
Answer:
The components of Indian systems of medicine (AYUSH) are as follows:

• Ayurveda
• Yoga
• Unani
• Siddha
• Naturopathy
• Homeopathy

Question 29.
List out any four biotic factors of environment.
Answer:
The four biotic factors of environment are birds, animals, plants, forests.

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 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 that 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.
What is Random sampling? Explain briefly.
Answer:
Sampling error refers to the differences between the sample estimate and the actual value of a characteristic of the population. It is the error that occurs when you make an observation from the samples taken from the population.

Thus, the difference between the actual value of a parameter of the population and its estimate is the sampling error. It is possible to reduce the magnitude of sampling error by taking a larger sample.

For example, suppose the height of 5 students (in inches) are 50, 55, 60, 65, 70. Now, the average height will be calculated by adding all these observations and dividing the sum by 5 . then we get 60 inches. If we select a sample of two students with height of 50 and 60 inches, then average height of sample will be 50 + 60 divided by 2, we get 55 inches. Here the sampling error of the estimate will be 60 (true value) minus 55 (estimate) = 5.

Question 32.
Briefly explain 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, suppose class 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 wheat per acre for 10 districts of a state is under:

Calculate quartile deviation:
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):

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.
Mention the properties of correlation coefficient.
Answer:

• Correlation ‘r’ has no unit, it is a pure number. It means units of measurement are not part of ‘r’.
• A negative value of ‘r’ indicates an inverse relation. A change in one variable is associated with change in the other variable in the opposite direction. For instance, when price of tomato increases, its demand decreases.
• If ‘r’ is positive the two variables move in the same direction. When the price of coffee rises, a substitute of tea, the demand for tea increases.
• The value of the correlation coefficient lies between minus one and plus one. (-1 ≤ r ≤ 1).
• If r = 0, the two variables are uncorrelated. There is no linear relation between them. However, other types of relations may be there.
• If r =1 or r = -1, the correlation is perfect. The relation between them is exact.
• A low value of ‘r’ indicates a weak linear relation. Its value is said to be low when it is close to zero.
• The magnitude of ‘r’ is unaffected by the change of origin and change of scale.

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

Question 35.
The traditional handicraft industries were ruined under. British Rule. 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 raw 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.
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 37.
Write a note on WTO.
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 38.
Explain the drawbacks of Agricultural Market.
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 farmers.
• 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.
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 quality 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:
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:

Question 44.
Calculate the SD of the following frequency distribution of heights of 30 persons by direct method.

Answer:


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

Question 45.
Briefly explain the effects of reforms on agriculture 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 46.
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 47.
What are the main causes of unemployment in India?

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

Question 48.
Record the daily expenditure quantities bought and prices paid per unit of the daily purchases such as Rice, Toordal, tomato, Onion and milk of your family for two weeks. How has the price, change affected your family?
Answer:

Now we need to calculate CPI by calculating price relative with the help of formulae.

Calculation of Living Index or Consumer Prise Index is calculated as follows:
\(\mathrm{CPI}=\frac{\Sigma \mathrm{WP}}{\Sigma \mathrm{W}}=\frac{1600}{15}=106.66\)
CPI = 106.66
Comment: It shows that there is an increase in price by 6.66%, which has a little effect on standard of living.

Question 49.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of 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 50.
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.