CBSE Class 11 Economics Worksheet Set 07 Solved

SECTION A

1. When Marginal Product curve coincides with X axis, Total Product:

A. Increases at a constant rate
B. Increases at a diminishing rate
C. Reaches maximum and constant
D. Reaches minimum and constant

2. A firm increases its output from 85 units to 90 units. As a result Total Variable Cost increases from Rs.180 to Rs. 200.What could be the Marginal Cost of Production of 90th unit.

3. Total Cost Curve and Total Variable Curve are parallel to each other. This is due to the fact that:

A. Total Cost remains constant as output increases.
B. Total Variable Cost remains constant as output increases
C. Average Cost remains constant as output increases
D. Total Fixed Cost remains constant as output increases

4. Consider the following schedule and assume the Average Fixed Cost of producing 3 units of output is Rs.5. Calculate Marginal Cost and Average Cost.

5. A firm is increasing the employment of a variable input keeping the employment of all other  inputs constant. Explain the three stages of production that a firm has to undergo with suitable  diagram.

SECTION B

6. Among Mean and Median which value is the most representative value of all observations? 

7. Which one of the following represents spatial classification?

A. Distribution of population among various states of India.
B. ‘Census of India’ report on population between 1951 to 2011
C. Distribution of population into Male and Female
D. Distribution of population into various age group

8. How is a frequency curve different from frequency polygon? 

9. Construct a pie diagram from the following information regarding the cost of construction of a house in Mumbai.

10.Locate Median on a graph, estimate and verify the result using formula

VALUE POINTS 

1. C. Reaches maximum and constant 

2. Rs. 4 

3. D. Total Fixed Cost remains constant as output increases

4.

TFC=AFC x Q; 3 x 5 =15
AC=TC/Q; TC= TVC+TFC
MC = TCn-TCn-1

5. This reveals about the contribution of a single factor towards production. In this we vary the employment of only one factor keeping the employment of other factors other factors fixed. This states that MP initially increases with the increase in the employment of the input in question, then it diminishes and finally it becomes negative. This pattern of MP is called law of variable proportion. This law outlines three stages of production

Stage I: When the level of employment of an input is sufficiently low, its MP increases; TP increases at an increasing rate. This stage ends at the point when MP reaches maximum. This stage is also known as the stage of increasing returns.

Stage II: MP diminishes but remains positive. TP will increase but at a diminishing rate. At the end of this stage MP is zero and TP reaches maximum and remain constant. This phase is also called diminishing returns.

Stage II: MP becomes negative. TP starts to decline. This phase is also called the stage of negative returns

SECTION B

6. Mean because it is base on all items of the series 

7. A. Distribution of population among various states in India 

8. Frequency curve is a smoothed curve whereas frequency polygon consists of straight lines

9.

Diagram

10.

Median = (N/2) th item; 100/2 = 50th item
50th item is in the class 8-10 i.e. Median class
M = L + (N/2-cf)/f x h
= 8 + ( 50-37/22) x 2
= 8+ (13/22) x 2
= 9.18. 9 approximate
Ogive and location. On the graph median = 9

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