Multiple Choice Questions (MCQs) for Class 11 Economics: Chapter 06 Correlation
Explore reliable objective questions for Chapter 06 Correlation tailored for Class 11 learners. Utilizing these Economics multiple-choice formats ensures thorough preparation and strengthens problem-solving speed for upcoming school assessments.
Practice Chapter 06 Correlation MCQs for Class 11 Economics
Navigate directly to the 50 objective questions for Chapter 06 Correlation using the digital viewer below. Each practice set includes verified answer keys, allowing students to instantly cross-check their work and identify areas requiring further revision.
Question. When two variables move together in the same direction, it is said to be
(a) no correlation
(b) negative correlation
(c) positive correlation
(d) zero correlation
Answer: C
Question. The minimum limit of correlation under Karl Pearson’s method is
(a) −1
(b) 0
(c) 1
(d) None of the options
Answer: A
Question. If the dots in a scatter diagram fall on a narrow band, it indicates a ……….degree of correlation.
(a) zero
(b) high
(c) low
(d) None of the options
Answer: C
Question. Scatter diagram can be used to indicate which of the following degrees of correlation?
(a) Perfect positive correlation
(b) Perfect negative correlation
(c) No correlation
(d) All of the options
Answer: D
Question. Correlation is an analysis of …… between two or more variables.
(a) relationship
(b) covariation
(c) determination
(d) calculation
Answer: B
Question. When the mean of series is a decimal number, then which method should be used for computing Karl Pearson’s coefficient of correlation?
(a) Direct Method
(b) Short-cut Method
(c) Step Deviation Method
(d) None of the options
Answer: B
Question. Karl Pearson’s coefficient of correlation indicates the …… and also the degree of relationship between the two variables.
(a) direction
(b) relation
(c) interpretation
(d) None of the options
Answer: A
Question. Statement I Non-linear correlation is also called curvy linear correlation.
Statement II Numerical measure of correlation is called coefficient of determination.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect
Answer: A
Question. Statement I Correlation is a multivariate analysis.
Statement II Partial correlation considers all other variables to be constant.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect
Answer: C
Question. The coefficient of correlation is independent of
(a) change of scale only
(b) change of origin only
(c) both change of scale and origin
(d) None of the options
Answer: C
Question. Coefficient of correlation lies between
(a) 0 and +1
(b) 0 and –1
(c) –1 and +1
(d) – 3 and +3
Answer: C
Question. Which of the following techniques deals with the association between two or more variables?
(a) Index number
(b) Correlation
(c) Dispersion
(d) None of the options
Answer: B
Question. If all the points lie on the same downward sloping line, the correlation is said to be
(a) perfect correlation
(b) perfect positive correlation
(c) perfect negative correlation
(d) negative correlation
Answer: C
Assertion–Reasoning MCQs
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both Assertion (A) and Reason (R) are false
Question. Assertion (A): Correlation analysis is a means for examining inter relationships systematically.
Reason (R): Causation explain the cause and effect relationship between variables.
Answer: B
Question. Assertion (A): Sale of ice-cream increases during summer, shows positive correlation.
Reason (R): When two variables move in same direction, it shows positive correlation.
Answer: B
Question. Assertion (A): Karl Pearson’s method is non-mathematical in nature.
Reason (R): Degree of correlation helps in identifying the nature of correlation between variables.
Answer: C
Question. Assertion (A): Broadly, there only two types of correlation i.e., positive and negative.
Reason (R): The correlation is said to be positive when the variables move together in the same direction, the correlation is negative when they move in opposite directions.
Answer: B
Case Based MCQs
Coefficient of correlation is an important statistical tool which is used to measure the relationship between two variables. This is not only useful in the field of statistics but also used in other disciplines like Economics, Geography, Psychology. In the present time due to the outbreak of Covid-19 corona virus, demand has gradually come down in almost all areas. As per the latest estimates, demand for car has decreased after the nationwide lockdown is lifted in phased manner.
Question. What will be the coefficient of correlation between demand for car and varied level of income due to nationwide lockdown?
(a) Positive correlation
(b) Negative correlation
(c) Perfect positive correlation
(d) No correlation
Answer: A
Question. If one variable change exactly in the reverse direction of the other variable, ……….. should be the degree of correlation.
(a) positive correlation
(b) negative correlation
(c) perfect positive correlation
(d) perfect negative correlation
Answer: D
Question. In perfect positive correlation, the value of ‘r’ is …… .
(a) –1
(b) 0
(c) 1
(d) infinity
Answer: C
Question. The correlation between using mask and being injected by the virus will be
(a) positive
(b) negative
(c) Not correlated
(d) Either (a) or (b)
Answer: B
Question. Which method of calculating correlation uses actual mean?
(a) Karl Pearson’s coefficient of correlation
(b) Scatter diagram method
(c) Spearman’s rank correlation method
(d) Both (a) and (c)
Answer: A
Question. Which of the following tools can be used to know the pattern of demand during lockdown?
(a) Correlation
(b) Causation
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer: B
Free study material for Economics
Multiple Choice Questions (MCQs) for Class 11 Economics Chapter 06 Correlation
About Chapter 06 Correlation MCQs for Class 11 Economics
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FAQs
You can get most exhaustive CBSE Class 11 Correlation MCQs Set 03 for free on StudiesToday.com. These MCQs for Class 11 Economics are updated for the 2026-27 academic session as per CBSE examination standards.
Yes, our CBSE Class 11 Correlation MCQs Set 03 include the latest type of questions, such as Assertion-Reasoning and Case-based MCQs. 50% of the CBSE paper is now competency-based.
By solving our CBSE Class 11 Correlation MCQs Set 03, Class 11 students can improve their accuracy and speed which is important as objective questions provide a chance to secure 100% marks in the Economics.
Yes, Economics MCQs for Class 11 have answer key and brief explanations to help students understand logic behind the correct option as its important for 2026 competency-focused CBSE exams.
Yes, you can also access online interactive tests for CBSE Class 11 Correlation MCQs Set 03 on StudiesToday.com as they provide instant answers and score to help you track your progress in Economics.