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## Karnataka 1st PUC Economics Model Question Paper 5 with Answers

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.
Which of the following represent median?
(a) Q1
(b) Q4
(c)Q3
(d)Q2
(d) Q2

Question 2.
Ogives can be helpful ¡n locating graphically the
(a) Mode
(b) Median
(c) Mean
(d) None of these
(b) Median

Question 3.
Railway transport introduced in India in the year
(a) 1835
(b) 1776
(c) 1853
(d) 1850
(d) 1850

Question 4.
It is an agricultural allied activity.
(a) Poultry
(b) Cottage industry
(e) Tourism
(d) Small industry
(a) Poultry

Question 5.
The state in India popularly known as bGodis Own Country”.
(a) Kerala
(b) Goa
(d) Kamataka
(a) Kerala

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Data collected by the investigator is called _____________
enumerator

Question 7.
Inflation affects the_________ of common people.
cost of living

Question 8.
WTO was established in the year____________.
1995

Question 9.
Investment on education is considered as one of the main sources of __________.
human capital

Question 10.
_____________ are renewable resource.
Trees and fish

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

Question 11.

 A B 1. Prime Minister (a) Air pollution 2. Median (b) Milk production 3. Census (c) Chairman of NITI Ayog 4. White revolution (d) Covers every individual 5. Industrialisation (e) Positional value

1-c,
2-e
3-d
4-b
5-a

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
How do range and quartile deviation measure the dispersion?
Range and quartile deviation measure the dispersion by calculating the spread within which the values lie.

Question 13.
Mention the last step in developing a project.
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
Expand GDP.
Gross domestic product.

Question 15.
What is agricultural marketing?
It refers to the process of assembling, storing, processing, grading, packing and distributing the agricultural products throughout the country.

Question 16.
What type of economic system is followed in India?
Mixed economic system is being followed in India.

Section – B

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

Question 17.
Write the differences between census and sample survey.

 Census Sample Survey It includes every element of the population Here a representative sample is taken for survey There may not be accurate information Provide reasonably reliable and accurate information It is expensive It is cheap and cost effective It is time consuming It takes less time

Question 18.
Mention the types of classification of data.
The types of classification of data are:
(a) Quantitative classification
(b) Qualitative classification
(c) Chronological classification
(d) Spatial classification.

Question 19.
Whether the data represented by a component bar diagram can also be represented by a pie chart? Explain.
A pie diagram is also a component diagram, but unlike a bar diagram, here it is a circle whose area is proportionally divided among the components it represents. So the data represented by a component bar diagram can also be represented by a pie chart. The only requirement being that absolute values of the components have to converted into percentages before can be used for a pie diagram.

Question 20.
Calculate the value of the mean from the following figures
X: 5, 7, 9, 12, 11, 8, 7, 15, 25.
x = $$\frac{\Sigma X}{N}=\frac{99}{9}$$ = 11

Question 21.
Interpret the values of ‘r’ as 1, -1 and 0.
When r = 1, it shows there is perfect positive correlation between two variables
When r = 1, it shows that there is perfect negative correlation between two variables When r = 0, it shows that there is no relationship between the two variables.

Question 22.
Mention the name of any four statistical tools.
The most important statistical tools are the measures of central tendency, dispersion, correlation, bar diagrams, pie chart, histograms, 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.
The important export goods of India before independence were raw silk, cotton, wool, sugar, indigo, jute, etc.

Question 24.
What are the social factors that trigger and perpetuate poverty?
The social factors that trigger and perpetuate poverty are as follows:

• Illiteracy
• 111 health
• Discrimination or lack of civil and political freedoms.

Question 25.
What factors contribute to human capital formation?
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.
How moneylenders exploited the rural farmers?
Moneylenders and traders exploited small and marginal farmers and landless labourers by:

• Charging very high rate of interest
• Manipulating the accounts to keep them in debt trap
• Trespassing the agricultural land by misusing their illiteracy
• Making debtors into bonded labourers.

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

• Open unemployment
• Disguised unemployment
• Seasonal unemployment
• Technical unemployment
• Frictional unemployment.

Question 28.
How infrastructure facilities have been classified?

• Infrastructural facilities are classified into two categories viz., economic infrastructure and social infrastructure.
• The economic infrastructural facilities are associated with energy, transportation, communica-tion, banking, insurance, etc. which directly contribute towards economic development.
• The social infrastructural facilities are associated with education, health, housing, sanitation, drinking water, which indirectly contribute for economic development.

Question 29.
List out any four biotic factors of environment.
The 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.
‘Scarcity is the root of all economic problems’. Explain the statement.
It is true that the scarcity is the root of all economic problems. If there had been no scarcity there would have been no economic problem. This would have not necessitated the study of economics.

In our daily life. we face various forms of scarcity. The queues at the railway booking counters. overcrowded buscs, heavy traffic on roads, the rush to get a ticket to watch a movie of a popular film actor or actress. arc all the manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.

Further, the resources which the producers have are limited and also have alternative uses.
For instance, take the case of food that we eat everyday. It satisfies our want of nourishment. Farmers employed in agriculture grow crops that produce our food. At any point of time. the resources in agriculture like land. labour, water, chemical fertilizers, etc. all these resources have alternative uses. The same resources can be used in the production of non-food crops. Thus, alternative uses of resources give rise to the problem of choice between different commodities that can be produced b those resources.

Question 31.
Briefly explain the sampling errors.
Random sampling is where the individual units from the population (samples) are selected at random. For instance, the government wants to determine the impact of the rise in petrol price on the household budget of particular locality. For this. a representative (random) sample of 30 household has to be taken and studied. The naines of all the 300 households of that area are written on pieces of paper and mixed well, then 30 names to be interviewed are selected one be one.

In the random sampling. ever indi idLial lias an equal chance of being selected and the individuals who are selected are just like the ones ho are not selected. In the aboe example. all the 300 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample. such drawn, is a random sample. This is also called lottery method, The same could be done using a random number table also

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.

There is a perfect positive corelation betveen the values of X and Y.

Question 33.
Explain the features of index number.
The following are the characteristics or features of index numbers:
(a) Index numbers are specialized averages: These are ahavs considered as specialized averages. An average is a single figure representing a group of figures. To obtain an average. the items must be comparable. Index numbers are also one type of averages which show in a single figure. the change in two or more series of different items that can be expressed in different units

(b) Index numbers measure the net change in a group of related variables: As index numbers are also averages. the describe in one single numerical value i.e. increase or decrease in a group of related variables under study. The group of variables may be prices of set of commodities. the volume of production in different sectors. etc.

(c) Index numbers measure the effect of changes over a period of time: Index numbers are most mostly widely used for measuring changes over a period of time. For example. we can compare the agricultural production, industrial production, imports, exports. wages. etc. during two different periods.

(d) Index numbers are expressed in percentages: The changes in magnitude are expressed in terms of percentages which are independent of the units of measurement. This facilitates the comparison of two or more index numbers in different situations.

(e) Index numbers measure and permit comparison of the prices of certain goods: Quantity index numbers measure the changes in the phsical volume of production, construction or employment.

Question 34.
The yield of Rice per acre for ten districts of a state are as under

Calculate mean deviation from mean

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

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
The most important feature of Indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. It resulted in a disadvantage to the country canon

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian ea1th.

Question 36.
Growth with equity is one of the objectives of planning. Justify.
Growth with equity is one of the objecties of planning. A country can have high economic growth. the most modern technology deeloped with in the country itself and still have most of its people living in poverty. It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and self-reliance, equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced,

Question 37.
Briefly explain the background of economic reforms in India.
There was a financial crisis which persisted since 1980. Wc know that to introduce various policies, the government has to generate funds from various sources like taxation, running public sector enterprises etc. When the expenditure is more than the income, the government takes loans to balance the deficit from banks and also from people within the country and from international banks,

The various development policies require huge finance. But there was scarcity of funds. Even though the revenues were very low, the government had to overshoot its revenue to meet the challenges like unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue. At the same time, the government could not generate funds internally. When the government was spending a large share of its income on areas which do not provide immediate returns, there was a need to use the rest of its revenue in a highly efficient manner, The incomc from public sector undertakings was also not very high to meet the growing expenditure.

Further, the foreign exchange. borrowed from other countries and international banks was spent on meeting consumption needs, No sincere efforts were made to reduce expenditure and to increase our exports.

During late 1980’s government expenditure exceeded its income. Prices of many essential goods increased. Imports grew at a very large extent. Foreign exchange reserves declined considerably and the same fall short to finance our imports for more than two weeks, There was shortage of funds even to pay interest to international lenders and at the same time no country or international bank was ready to lend any more to India.

At this situation. India approached the International Bank for Reconstruction and Development and International Monetary Fund and reccvcd seven billion dollars as loan to manage the crisis.

To avail loans, these international banks expected India to liberalise and open up its economy by removing restrictions on the private sector, reduce the role of go’ernnient in many areas and remove trade restrictions between India and other countries.

India had to agree to these conditions of IBRD and IMF and announced the new economic policy which included liberalization, privatization and globalization.

Question 38.
Explain the drawbacks of agricultural market.
Agricultural marketing is a process that involves the assembling, storage, processing, transportation. packaging, grading and distr4bution of different agricultural commodities across the countr. The major drawbacks of agriculture marketing in India are as follows:

• Long chain of middlemen taking awa 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.
Briefly explain the state of infrastructure in rural India.
Majority of people in India live in rural areas, In spito of so much of technological progress in the world, rural women are still using bio-fuels like agricultural waste, dried dung and fire wood to meet their eneigv requirement. Thc’ have to walk long distances to bring fuel, water and other basic needs.

According to the latest estimates. in rural India only 56% of households have electricity connection and 43% still use kerosene. About 90% of the rural households use bio- fuels for cooking. Tap water availability is limited to only 24 % rural households. About 76 % of the population drinks water from open sources like wells. tanks. ponds, lakes, rivers, canals etc. Access to improved sanitation in rural areas only 20 %.

Question 40.
Write a note on the Great Leap Forward campaign of China.
The Great Leap Forward’was initiated in 1958 by the Communist Party of Peoples’ Republic of China. After the establishment of people’s Republic of China under one party rule, all the critical sectors of the economy, enterprises, and lands owned and operated by the individuals were brought under government control.

The Great Leap Forward campaign aimed at industrializing the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under commune system, people collectively cultivated lands. ¡n 1958, there were 26,000 communes covering almost all the farm population.

The Great Leap Forward campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialization process.

Section – D

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

Question 41.
Draw an arithmetic line graph using following data.
Value of import and export of India (in 100 crores).

Question 42.
Calculate Q1, Q2, and Q3 from the following data
15, 21, 26, 30, 40, 45, 50, 54, 60, 65, 70.

Question 43.
The yield of wheat per acre for ten districts of a state are as under

Calculate Standard deviation and coefficient of variation.
Standard Deviation (actual mean method)

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

Question 44.
Explain the goals of five-year plans.
The main goals ofthc five ‘ear plans are Growth, modernization, self-reliance and equity. They can be illustrated as follows:
(a) Growth: It refers to the increase in the gross domestic product. It also implies that the increase in the country’s capacity to produce the output of goods and services within the country. It includes larger stock of productive capital or a larger size of supporting services like transport and banking or an increase in the efficiency of productive capital land services.

A good indicator of economic growth, in the language of economics, is a steady increase in the gross domestic product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy. namely agricultural sector, the industrial sector and the service sector.

(b) Modernization: Adoption of new technology is called as modernization. To increase the production of goods and services producers have to adopt new technologies. For example, a farmer can increase the output on his farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new types of machinenes.

Modernisation does not refer only to the use of new technology but also to changes in
social outlook such as the recognition that women should have the same rights as men.
In a traditional society, women are supposed to remain at home while men work.

(c) Self-reliance: The first seven five year plans gave importance to self reliance. Self reliance refers to avoiding imports of those goods which could be produced in India itself. This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is a well-known fact that, people who were recently freed from foreign domination should give importance to selfrcliance.

(d) Equity: Growth withequity is one of the objectives of planning. A country can have high economic growth, the most modern technology developed with in the country itself but still have most of its people living in poverty It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and selfreliance. equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced.

Question 45.
Explain the causes of poverty.
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment. unemployment and underemployment. A large section of urban and rural poor are unable to get proper income-generating employment opportunities. Industrialization has failed to absorb the unemployed youths in India. Casual labourers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Lnflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is wide gap between the rich and the poor, where the poor are unable to get opportunities to come out of poverty line.

Question 46.
List out the benefits of organic farming.
Organic farming is that fanning which relies on crop rotation, green manure, compost and biological pest for growing crops. It is a whole system of farming that restores, maintains and enhances the ecological balance.

The main benefits of organic farming are as follows:

• It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides) with cheaper ones
• It generates income through exports
• It contributes to ecological balance
• Provide healthy and chemicals free food
• Organic farming contributes to higher production and productivity
• It enhances the quality and quantity of agricultural products
• Provide alternative employment opportunities to rural people
• Helps in the prevention of deterioration infertility and the conservation of soil.

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

Question 47.
On the basis of data you have collected regarding participation of women in your locality in the below mentioned categories construct a pie chart.
(a) Self-employed
(b) Regular salaried employees
(c) Casual wage labourers. .
As per the data collected regarding participation ofomcn in our 1oca1it. the following table is generated

 Categories Participation Self-employed 50 Regular salaried 20 Casual labourers 30

Question 48.
Give appropriate examples for the following.

 Name of the product Name of foreign company Biscuit Shoes Computers Cars

 Name of the product Name of foreign company Biscuit Hide and Seek Shoes Nike/Liberty Computers Dell Cars Toyoto

The above-mentioned companies have come to India after 1991 new economic policy.

Question 49.
Identify the formal and informal workers in the following list.
(a) Petty shop owner
(b) Handloorn weaver
(C) SBI cashier
(d) A street vendor
(e) Government hospital nurse
(f) Government primary school teacher
(g) Tailor
(h) Revenue inspector
(I) Police
(j) Agricultural labourers