Class 11 Economics Sample Paper Set 2 — Free PDF
This economics sample paper covers microeconomics, macroeconomics, and Indian economy topics. It tests understanding of economic principles and their real-
TL;DR: This economics sample paper covers microeconomics, macroeconomics, and Indian economy topics. It tests understanding of economic principles and their…
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This economics sample paper covers microeconomics, macroeconomics, and Indian economy topics. It tests understanding of economic principles and their real-world applications.
Board: CBSE · Class: Class 11 · Subject: Economics · Total: 80 marks · Time: 3 hours
Section A: Microeconomics — 25 marks
Answer questions on individual economic units and market behavior.
Q1. Explain the law of demand and explain its exceptions. (5 marks)
Answer: Law of demand: inverse relationship between price and quantity demanded. Exceptions: Giffen goods (inferior goods where price increase increases demand), Veblen goods (prestige goods), and goods with speculative demand.
Q2. What is elasticity of demand? Calculate price elasticity if price increases by 10% and quantity demanded falls by 20%. (5 marks)
Answer: Elasticity measures responsiveness of quantity to price changes. Price elasticity = % change in quantity / % change in price = -20% / 10% = -2. Demand is elastic.
Q3. Explain perfect competition and list its characteristics. (5 marks)
Answer: Perfect competition has many buyers and sellers, homogeneous products, free entry/exit, perfect information, and no barriers. Firms are price takers, producing where P = MR = MC.
Q4. What is monopoly? Explain how it differs from perfect competition. (5 marks)
Answer: Monopoly has one seller with significant market power. Unlike perfect competition, monopolists face downward-sloping demand, set prices, have barriers to entry, and earn economic profits.
Q5. Define and calculate break-even point in production. (5 marks)
Answer: Break-even is where Total Revenue = Total Cost, profit = 0. Formula: BEP = Fixed Costs / (Price - Variable Cost per unit). Produces minimum output to avoid losses.
Section B: Macroeconomics — 25 marks
Answer questions on economy-wide issues and policies.
Q1. What is GDP and how is it calculated? Explain nominal vs real GDP. (5 marks)
Answer: GDP is total value of goods and services produced. Calculated by expenditure method: C + I + G + (X-M). Nominal GDP uses current prices; real GDP adjusts for inflation, showing actual growth.
Q2. Explain inflation and its causes. What are the effects of inflation? (5 marks)
Answer: Inflation is sustained increase in price levels. Causes: demand-pull inflation, cost-push inflation. Effects: reduced purchasing power, uncertainty in investment, eroded savings.
Q3. What is unemployment? Explain types of unemployment. (5 marks)
Answer: Unemployment is when people are willing and able to work but lack jobs. Types: frictional (job transitions), structural (skills mismatch), cyclical (recession-related), seasonal.
Q4. Describe monetary policy and tools used by central banks. (5 marks)
Answer: Monetary policy manages money supply to achieve price stability and growth. Tools: open market operations, reserve requirement changes, discount rate adjustments. RBI is Indias central bank.
Q5. What is fiscal policy and how does it differ from monetary policy? (5 marks)
Answer: Fiscal policy uses government spending and taxes. Monetary policy controls money supply. Fiscal is discretionary but slow; monetary is flexible. Both aim for macroeconomic stability.
Section C: Indian Economy — 30 marks
Answer questions on Indian economic structure and development.
Q1. Describe the structure of Indian economy by sectors. What is the distribution of workforce? (5 marks)
Answer: Primary sector (agriculture) contributes ~15% GDP but employs 40% workforce. Secondary (manufacturing) ~25% GDP, ~25% workforce. Tertiary (services) ~60% GDP, ~35% workforce.
Q2. What is economic liberalization? How has it affected India since 1991? (5 marks)
Answer: Liberalization reduced government control, opened economy to foreign investment, and removed trade barriers. Results: increased FDI, rapid growth averaging ~7%, increased global integration, but also rising inequality.
Q3. Explain the role of agriculture in Indian economy and challenges it faces. (5 marks)
Answer: Agriculture employs 40% population, contributes 15% GDP, provides raw materials. Challenges: land fragmentation, poor irrigation, dependence on monsoons, low productivity, farmer debt.
Q4. What is the Make in India initiative? What are its objectives? (5 marks)
Answer: Make in India promotes manufacturing and attracts foreign investment. Objectives: create jobs, increase manufacturing sector contribution, develop infrastructure, boost exports, technology transfer.
Q5. Discuss Indias fiscal policy in recent years. What is the debt-to-GDP ratio concern? (5 marks)
Answer: India maintains moderate fiscal deficit. Government spending on infrastructure and welfare increases debt. High debt-to-GDP ratio limits future spending, raises interest payments, affects macroeconomic stability.
Q6. What are external sector issues facing India? Explain current account deficit. (5 marks)
Answer: Current account deficit occurs when imports exceed exports. Causes: oil price spikes, demand for foreign goods. Problems: foreign reserves depletion, currency depreciation, balance of payments crisis. Solutions: export promotion, import substitution.
FAQs
How important is mathematical calculation in economics?
Approximately 40% of questions involve calculations like elasticity, GDP, break-even analysis. Practice numerical problems regularly.
Should I memorize formulas?
Understand derivations rather than memorizing. If you understand concepts, deriving formulas is easier and shows deeper knowledge.
How much focus on Indian economy is needed?
About 30-40% of the paper focuses on Indian economy. Study current economic issues, government policies, and structural changes.
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