Time : 3 Hours 15 Minutes Maximum Marks : 100 Economics Karnataka, PUE Solutions

Solution of Question Paper 6

1. (c) Chronological classification. [1] 2. (c) Scatter diagram. [1] 3. (a) July, 1991. [1] 4. (c) Structural. [1] 5. (c) Consumer Price Index. [1] 6. Late 1970s [1] 7. demand pull inflation [1] 8. stability [1] 9. Deciles [1] 10. designations [1] 11. (i) (d), (ii) (e), (iii) (a), (iv) (b), (v) (c). [5] 12. All those activities which contribute to Gross National Product through production of goods and establish exchange are called economic activities. [1] 13. Energy being generated from cow dung, agricultural wastes and other biological materials is known as bio-energy. [1] 14. Renewable resources are those resources which can be used without the possibility of being exhausted. [1] 15. There are two main sources of data : (i) Internal (ii) External. [1] 16. A simple table is one in which data are presented according to one characteristic only. [1]

17. Functions of statistics are : (i) Statistics is helpful in formulating the economic policies. [1] (ii) It presents the facts in a definite and precise form. [1] 18. Qualities of a good questionnaire are : (i) The questions should be brief. [1] (ii) Questions should be simple, clear and unambiguous. [1] 19. Two types of bar diagram are : (i) Simple bar diagram, (ii) Multiple bar diagram. [1+1=2] 20. Two types of Arithmetic Mean are : (i) Simple Arithmetic Mean, (ii) Weighted Arithmetic Mean. [2] 21. Ogive can be obtained by calculating either less than cumulative frequencies or more than cumulative frequency and by plotting the cumulative frequency data on graph paper in the form of a smoothed curve which is known as Ogive. [2] 2 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

22. Arrange the data in ascending order : X = 5, 7, 7, 9, 11, 12, 15, 18, 25 th  N + 1  \ Median (M) = Size of   item  2  th th  9 + 1   10  Size of   item = Size of   item  2   2  = Size of 5th item Size of 5th item is 11, so median = 11. [2] 23. Industrial policy of a government means a policy which gives direction about establishment of industries and working as well as structure of industries. [2] 24. Causes of poverty : (i) Unemployment : The degree of unemployment among the poor is very high so that they are not able to earn the required income to purchase minimum needs of the their family members and thus can be held responsible for poverty. [1] (ii) Rapid growth in population : The single most important reason of poverty is rapid growth of population. This is responsible for low level of income and consumption. [1] 25. There is difference between education and literacy. Education is a much wider concept than literacy. Literacy refers to the ability to read and write. Education includes three parameters i.e., primary education, secondary education and higher education. While all educated people are literate, all literate people are not necessarily educated. [2] 26. The need of community for the completion of agriculture and related activities is called rural credit. [2] 27. Forms of rural employment in India are : (i) Seasonal unemployment [1] (ii) Disguised unemployment. [1] 28. (a) Infrastructure increaces productivity in primary, secondary and tertiary sector. (b) Infrastructure induces investment. (c) Infrastructure generates linkages in production. (d) Infrastructure enhances size of the market. (e) Infrastructure enhances ability to work. (f) Infrastructure facilitates outsourcing and induces FDI. [2] 29. Thermal Power Plants emit large quantities of carbon dioxide in environment and cause of water, and environment. [2]

30. Important characteristics of statistics are : (i) Statistics always present facts in numbers. (ii) Statistics makes the complexities simpler. (iii) Statistics shows data in a precise manner. (iv) Data are collected in a systematic manner. (v) Data are collected for achieving pre-determined purposes. [1×4=4] 31. Exclusive Method : In this method, series are so formed that the upper limit of one class-interval is the lower limit of the next class-interval. Here, the upper limit of one class-interval is equal to the lower limit of its next class-interval. Solutions 3

Inclusive Method : In this method, series are so formed that lower limit and the upper limit of a class interval are included in the class itself. Here, the upper limit of one class-interval is not equal to the lower limit of its next class-interval. [4] 32. Size Frequency 0 1 1 7 2 14 3 13 4 5 5 2 6 2 7 1 Total 45

[4] 33. Degree Table Expenditures Expenditure Items Degree (in `) (in Percentage) Food 180 20 72 House Rent 225 25 90 Clothes 135 15 54 Education 90 10 36 Other 270 30 108 Total 900 100 360° Pie-Diagram

House Rent 90º 54º Food Clothes 72º Education 36º 108º Others

34. Marks No. of Students 0–10 5

10–20 12 f0 20–30 14 f1 30–40 10 f2 40–50 8 50–60 6 4 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

Mode lies in 20–30 group. ff10− \ Z = L1 + ×i 2 ff10−−f2 14 −12 Þ Z = 20 + ×10 21×−4121− 0 2 = 20 + ×10 28 − 22 20 = 20 + = 20 + 3.33 6 \ Z = 23.33. [4] 35. Features or strategy of New Industrial Policy (1991) are as under : (i) Delicensing (ii) Abolition of registration (iii) Role of public sector was reduced (iv) Foreign capital investment was encouraged (v) Establishment of industries. [1×4=4] 36. Relative poverty in terms of income can be measured by a number of methods but gain method is most popular. Income distribution of the population of different groups is estimated and a comparison of the levels of living of the top 5% to 10% with the bottom 5% to 10% of the population is made. Thus, relative poverty indicates the relative position of the different segment of the population in the income hierarchy. [4] 37. (i) Poverty in India in mid 70’s was slightly more than 50% which means every second Indian was a poor. (ii) Poverty in rural areas had always been on higher side than that in urban areas. (iii) Significant fall in poverty took place in 1977-78 to 1983-84. (iv) Decline in poverty was spectacular between 1993-1994 and 1999-2000. i.e., 10% poverty reduction. (v) Absolute number of poor people in India remained around 32 crore between 1973–1974 to 1993–1994. (Any four) [1×4=4] 38. (i) Human development is a broader term as compared to human capital because human capital is a means to an end, whereas human development is an end in itself. Human capital considers education and health as a means to make human being a good productive person. Human capital is a means to an end where means imply skills that are used in the process of production and end denotes the consequent increase in the productivity. The higher level of output can be achieved through extensive application of human capital. (ii) On the other hand, human development is an end in itself which refers to the holistic development of the individuals. The development can be possible only by acquiring good education and attaining good health. Therefore, education and health are the two main features of human development. Human development occurs when majority of the people in the economy are educated and healthy. Thus, the end signifies the development of an individual via education and health. Therefore, we can conclude that human development is a broader term as compared to human capital. [4] 39. Agricultural credit is very important for the development of agriculture. Private money–orders were not sufficient to meet the required demand of the farmers. So, after independence multi-agency approach as an institutional credit was adopted in India. Multi-agency approach consists of co- operatives, Commercial banks and regional rural banks. It is called national policy also. Main objectives of this policy are as follows : (i) To reduce the importance of money lenders and to abolish them gradually from rural areas. (ii) To reduce regional imbalances. [4] Solutions 5

40. The following measures have been taken by the government to regulate agricultural marketing : (i) Regulation of Markets : The first measure to improve agricultural marketing aspect is regulation of markets to create orderly and transparent marketing conditions. Regulated markets have been established where sale and purchase of the produce is monitored by the Market Committee consisting of representatives of the government, the farmers and the traders. (ii) Improvement in Physical Infrastructure : It is the second measure to improve the agriculture marketing aspect. The current infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units, etc. are inadequate to meet the growing demand. Through this measure, government ensures the improvement in physical infrastructure. [4]

41. Incorrect X = 50 SX = X × N Þ SX = 50 × 200 = 10,000 10,(000 −+92 8)(++192 88) Correct Mean = 200 10,000 −+100 280 = 200 Correct Mean = 50.9. [6] 42. X x2 Y y2 x . y x = (X – X ) X = 12 y = Y – Y , Y = 10 10 –2 4 7 –3 9 6 12 0 0 9 –1 1 0 11 –1 1 12 2 4 –2 13 1 1 9 –1 1 –1 12 0 0 13 3 9 0 14 2 4 8 –2 4 –4 9 –3 9 10 0 0 0 12 0 0 12 2 4 0 14 2 4 7 –3 9 –6 13 1 1 13 3 9 3 SX = 120 SX = 0 Sx2 = 24 SY = 100 Sy = 0 Sy2 = 50 Sxy = – 4

Here N = 10 ΣX 120 X = ==12 N 10 ΣY 100 Y = ==10 N 10 Σxy −4 Correlation r = ∴=r ΣΣxy22. 24 × 50 −4 = =−0.115 34.64 It shows a low degree of negative correlation between X and Y series. [6] 6 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

43. Calculation of Standard Deviation

d d = m – A d' = X f Mid-values c d'2 fd' fd'2 A = 25 c = 10 0–10 16 5 –20 –2 4 –32 64 10–20 12 15 –10 –1 1 –12 24 20–30 10 25 0 0 0 0 0 30–40 15 35 10 1 1 15 15 40–50 12 45 20 2 4 24 48 50–60 8 35 30 3 9 24 72 N = 73 Sfd' = 19 Sfd'2 = 211

2 2 ΣΣfd ''2  fd  211  19  s (S.D.) = −   ×−C=   ×10 NN  73  73 

= 28..90−×067 10 =×28..2101=×68 10 Þ s = 16.8. [6] 44. Poor people do not have enough resources for economic purpose. For example, a poor farmer cannot use good variety of seeds and equipments. Therefore, he and his family members may remain unemployed. Due to poverty, they are not in a position to maintain efficiency and productivity. It is not possible for poor men to have proper education to improve their mental ability. Poverty encourages farmers to mortgage their land to money lenders in long-run, which increases unemployment. [6] 45. Rail and roads are complementary to each other, which means road system links up cultivators with the local market and with the nearest railway station, whereas railways provide connecting links between the area of production and the consumers. If roads provide door to door links, railway links up long routes. Thus, both the major means of transport should be complementary rather than competitive to each other. If at all, these are becoming competitive in certain areas, government should devise such a National Transport Policy, so that they work in a co-ordinate manner. [6] 46. Differences between Economic Development and Sustainable Development : Economic Development Sustainable Development (i) Economic development is related to the Sustainable development is related to the problems of underdeveloped economies. problems of both developed and underdeve- loped economies. (ii) It doesn’t pay due attention to check It pays due attention to check pollution and to pollution and to protect environment. protect environment. (iii) In it, there is a long-term increase in per In it, attention is paid to maintain real per capita income and economic welfare. capita income, economic welfare of the future generation. (iv) In it, natural resources are exploited. In it, natural resources are rationality utilized to give benefit to the future generation. [6] Part ‘E’

47. Limitations of Index Numbers are : (i) They are simply rough indications of the relative changes. (ii) The choice of representative commodities may lead to false conclusions as they are based on samples. Solutions 7

(iii) There may be errors in the choice of base periods or weights, etc. (iv) Comparison of changes in variables over long-periods are not reliable. (v) They may be useful for one purpose but not for other. [5] 48. The industrial sector has performed poorly in the reform period because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment, infrastructure, etc. India is a founder member of WTO and in facilitating globalization of Indian economy. India like other developing countries is compelled to open up its economy to greater flow of goods and capital from developed countries and thus, the domestic industries become vulnerable to competition from imported goods. Cheaper imports have replaced the demand for domestic goods in India. The investment made in infrastructure facilities including power supply has remained inadequate and hence domestic industries have not found conditions favourable to compete with foreign goods. Globalization has led to free movement of goods and services from foreign countries and thus, caused the local industries to die out and employment opportunities to fall in developing countries like India. Moreover, India still does not have access to developed country’s markets because of high non-tariff barriers not only in the form of quantitative restrictions but also in the form of agricultural subsidies, sanitary, etc. Thus, the domestic industries were adversely affected by liberalization. [5] 49. Most multinational corporations and even small companies are outsourcing their services to India as our country has the following advantages : (i) Availability of cheap labour : India is a country with a large population and thus, abundant supply of labour. Due to this reason, labour in India is available at low wage rates. This helps foreign companies to reduce cost of operation by outsourcing their business process to India. (ii) Skill and accuracy : India has a wide pool of talent in the form of educated and trained youth who have the required skills and can work with accuracy in the business processes such as accounting, record keeping, IT consultancy, etc. Here outsourcing plays a vital role that it gives a platform to the people so that they can enhance their skills and secondly they need low training period and thus, low cost of training. (iii) Continuity and risk management : Periods of high employee turnover will add uncertainty to the operations. Outsourcing will provide a level of continuity to the company while reducing the risk that a sub-standard level of operation would bring to the company. (iv) Reduced overhead : Overhead costs of performing back office functions are extremely high but due to the outsourcing of various functions, it has become cheaper and convenient to use. [5] ll Time : 3 Hours 15 Minutes Maximum Marks : 100 Economics Karnataka, PUE Solutions

Solution of Question Paper 7

1. (a) the ordinary business. [1] LS− 2. (a) . [1] LS+ 3. (d) 1853. [1]

4. (b) P01 × P10 = 1. [1] 5. (d) 1974. [1] 6. labour [1] 7. second or middle [1] 8. non-conventional [1] 9. composition of trade [1] 10. median. [1] 11. (i) (b), (ii) (d), (iii) (e), (iv) (c), (v) (a). [5] 12. Primary Data. [1] 13. Main parts of any table are : (i) Headings, (ii) Table Number. [1] 14. The number of countries who are members of WTO is 161. [1] 15. It refers to the variations in the distribution of income in the society. [1] 16. (i) Educated unemployment, (ii) Technological unemployment. [1]

17. The investigator, in this case, makes personal observation of the subject of enquiry and does so with his own discretionary powers to undertake work according to his own choice. [2] 18. Two limitations of diagrammatic representation are : (i) Qualitative representation not possible. [1] (ii) Not possible to represent small differences in value. [1] 19. Two types of Price Index Numbers are : (i) Simple Index Numbers [1] (ii) Weighted Index Numbers. [1] 20. When the number of poor is estimated as the proportion of people below the poverty line, it is known as “Head Count Ratio”. [2] Solutions 9

Time : 3 Hours 15 Minutes 21. We know that Mode = 3 Median– 2 Mean Maximum Marks : 100 or Mode = 3 × 30.6 – 2 × 24.5 or Mode = 91.8 – 49, Þ Mode = 42.8. [2] 22. First four steps in developing a project are : Step I : Objectives of the project. Step II : Collection of data through questionnares. Step III : Classification of data. Step IV : Presentation of data through diagrams/graphs. [2] 23. Literacy rate in India has increased and so has the absolute number illiterates. It is mainly because the growth of the educational facilities have not matched the growth of population leading to increased absolute number of illiterates. [2] 24. Three-tier system of rural co-operative credit societies are : (i) At Village Level : Primary Agriculture Credit Societies (PACS) (ii) At District Level : District Co-operative Bank (DCB). (iii) At State Level : State Co-operative Banks (SCB). [2] 25. Advantages of textual presentation of data are : (i) This method is effective when the quantity of data is less. [1] (ii) This method is a combination of figures and facts which makes it easy to understand. [1] 26. The contribution of agriculture in national income is declining, but the contribution of industries and service sector is increasing continuously. It is an indicator of economic development of Indian economy. [2] 27. In rural areas, seasonal unemployment and disguised unemployment exists widely. [2] 28. Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh. [2] 29. (i) It fulfills the needs of present generations. (ii) Without causing any harm to the ability of the future generations to meet their own need. [2]

30. Statistics is often regarded as being a means by which observations are expressed numerically in order to investigate casual relationship between the variables. Any fact, to be called statistics must be numerically expressed (so that it can be counted, divided or be subject to mathematical analysis) and should be placed in relation to each other. But qualitative data cannot be included in statistics unless they are quantified by assigning some figures for assessment. However, not all numbers are comparable and measurable. For example, the fact that height of a student is five feet tells nothing, unless it is comparable. Thus, for figures to be included in statistics, they must be aggregate of facts and not individual figures. That’s why it is rightly said that statistics are figures but all figures are not statistics. [4] 31. Census Method : In Census investigation or complete count, information is collected about every unit of the universe relating to the problem under investigation. Population census or census of production is such investigation. Sampling Method: Our knowledge, our attitudes and our actions are based on a large extent on samples. Statistical techniques have improved so greatly that it is now not necessary to investigate all the items in any group from which we may wish to collect information instead, we can carry out a survey of a population by merely investigating a fraction, i.e., a sample of that population. [4] 32. The cumulative frequency is calculated by adding each frequency from frequency distribution table to the sum of its predecessors. The last value will always be equal to the total of all observations, since all frequencies would have already been added to the previous total. 10 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

The following frequency distribution table gives the marks obtained by 40 students : Class Marks Frequency Cumulative Frequency 0–10 4 4 10–20 5 9 = 5 + (4) 20–30 12 21 = 12 + (4 + 5) 30–40 11 32 = 11 + (4 + 5 + 12) 40–50 8 40 = 8 + (4 + 5 + 12 +11)

[4] 33. Increase in wages of each worker = ` 20 × 50 = ` 1,000 Total wages before increase in wages = 50 × ` 200 = ` 10,000 Total wages after increase in wages = ` 10,000 + ` 1,000 = ` 11,000 ΣX 11,000 New average wages = = = ` 220 N 50 Thus, mean wage will increase by ` 20. [4] σ 120 34. (i) Coefficient of variation of school A = ×=100 ×=100 15% X 800 σ 135 (ii) Coefficient of variation of school B = ×=100 ×=100 15% X 900 As we see that CV of school A and school B are the same therefore, there is uniformity in income of employees of two schools. [4] 35. (i) It improves productivity and efficiency. (ii) It improves mental horizon of the people by which they try to improve their health status. (iii) Common educated masses contribute in the development of the country. (iv) It makes them good citizen that helps in choosing an intelligent government. (v) It promotes science and technology by which people have a scientific outlook. (vi) It produces skilled and trained workers. (Any four) [1 × 4 = 4] 36. The problems faced by farmers during the initial years of organic farming are : (i) Organic farming requires inputs like organic manure, bio-fertilizers and organic pesticides. Though they are cheaper to obtain, yet farmers find it difficult to get them. (ii) The yield from organic farming is much less than modern agricultural farming. (iii) The price of organic foods is high, so it is difficult to sell them. (iv) Organic products generally have more blemishes and shorter shelf life. [4] 37. Unemployment is an economic problem in the sense that unemployed persons will be consumers only without being a producer. Non-utilization of human resources due to unemployment involves double cost of maintenance and loss of output. Unemployment is a social problem in the sense that it causes enormous sufferings to unemployed workers due to their reduced or nil income. Many social evils like dishonesty, immorality, drinking, gambling, robbery, etc are the outcomes of unemployment. It causes social disruption in the society and the government has to incur a heavy unproductive expenditure on law and order. [4] 38. The Consumption Pattern of energy changed over the years as : (i) The percentage use of different sources of energy is referred to as pattern of energy consumption. It can only be analysed when different sources of energy are converted into a common unit, which is termed as MTOE (Million Tonnes of Oil Equivalent in India). (ii) The pattern of energy consumption has undergone considerable change over time. The use of Solutions 11

primary sources like coal, petroleum and natural gas has undergone a significant change. The non-commercial use of this energy has increased from 36% to 76% during 1953-54 to 2004-2005. (iii) The percentage of direct final consumption of coal has drastically reduced irrespective of the increase in total consumption of coal. Its consumption increased from 95 million ton in 1980-81 to 355 million ton in 2008-09. (iv) The consumption of oil, for which our country was dependent upon Gulf countries, has increased. (v) The consumption of electricity in the agriculture sector has increased overtime, whereas, it remained the highest in the industrial sector as compared to other sectors. (Any four) [4] 39. (i) The infra structure development, Socially and economically, facilitates production. The role of infrastructure in economic production can be understood well by the following example : If agriculture is devoid of irrigation facilities, then it would entirely depend on the monsoon that may hamper its production and productivity. (ii) As irrigation is necessary to enhance the productivity of agriculture sector, in the same manner, infrastructure is essential for the smooth and efficient production of all sectors of the economy. Similarly, industrial production in the absence of proper means of transportation may lead to delays in the movement of raw materials, capital goods and finished goods. This in its turn leads to delays in the production process and, thereby, hampers industrial production. [4] 40. (i) Balance between present and future generations. (ii) Optimum use of resources. (iii) No increase in pollution. (iv) Decrease in poverty by providing lasting and secure livelihoods. (v) Minimization of cultural destruction and social instability. [4]

41. Wages No. of Workes c.f. 0–10 22 22 10–20 38 60 20–30 46 106 30–40 35 141 40–50 20 161

th  N M = Size of item  2  th  161 = Size of item  2  Þ M = size of 80.5th item which lies in 20 –30 age group. By interpolation : LL− L + 21()mc− M = 1 f 30 − 20 = 20 + (.80 56− 0) 46 10 × 20.5 = 20 + 46 12 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

205 M = 20 + 46 M = 20 + 4.456 M = 24.456 or 24.46. [6] 42. Arrange the data in ascending order S. No. X 1 11 2 12 3 14 4 18 5 22 6 26 7 32 8 35 9 41 10 130 N = 10

th  N + 1  Q = Size of   item 1  4 

th  11  = Size of   item  4  = Size of (2.75)th item = Size of 2nd item + .75 (Size of 3rd item – Size of 2nd item) = 12 + .75 (14 – 12) = 12 + .75 (2) = 13.5

th  N + 1  Q or Median = Size of   item 2  2 

th  11  = Size of   item  2  = Size of 5.5 item = Size of 5th item + .5 (Size of 6th item – 5th item) = 22 + .5 (26 – 22) = 22 + 2.0 = 24

th  N + 1  Q = Size of 3   item 3  4 

th  11  = Size of 3   item  4  = Size of 8.25th item = Size of 8th item + .25 (Size of 9th item – Size of 8th item) [6] = 35 + .25 (41 – 35) = 35 + 1.50 = 36.50 Solutions 13

43. Percentage Calculation Cost per item Factory A (%) Factory B (%) * Wages 40 33.3 * Raw Material 30 50 * Other Expenses 20 25 Total 90 108.3 Selling Price 100 100 Profit or Loss +10% (–) 8.3 %

% Cost per item and Profit & Loss Y FactoryB Scale:1cm=20% FactoryA 100 Other expenses

80 Raw material

%

in 60 Wages 40

upees Profit/Loss

R 20 Profit 0 Loss –20 X [6] 44. This programme was adopted in 1992. In it, five point strategies to promote forestry in the country are mentioned as below: (i) Protection of existing forest resources of the country. (ii) Increase in productivity of forests. (iii) Reducing the demand for products. (iv) Expanding the existing forest areas. (v) Strengthening the policy and constitutional framework. [6] 45. Although accelerated growth is a necessary condition to ensure removal of poverty, it is not sufficient condition for removal of poverty. It is very important that accelerated growth should be accompanied by levelling up of income i.e., fruits of growth must flow towards the poorer sections of the society i.e., additional income generated should not be cornered by already rich persons. [6] 46. Features of institutional credit : (i) Institutional credit is more important than non-institutional credit. (ii) After nationalization in 1969, banks are playing a very important role in household rural credit. In this regard, co-operative societies are lagging behind. (iii) Institutional credit agencies are growing rapidly. Therefore, rural households for the credit are shifting towards these institutional agencies from non-institutional agencies. (iv) The interest on non-institutional credit is always higher in comparison to institutional credit. As a result, the burden of interest on the farmers tends to decline. (v) Private money lenders were not sufficient to meet the required demand of the farmers. So, after independence, multi-agency approach as an institutional credit was adopted in India. [6] 14 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

Part ‘E’ Time : 3 Hours 15 Minutes Maximum Marks : 100 47. Reasons responsible for are as follows : (i) Loss of vegetation occuring due to (ii) Unsustainable fuel wood and fodder exhaction. (iii) Shifting cultivation & encroachment into forest lands. (iv) Forest fires & overgrazing. (v) Non-adoption of adequate consevation measures. (vi) Improper crop rotation. (vii) Indiscriminate use of agro chemicals. (viii) Improper planning and management of irrigation system. (ix) Extraction of ground water in excess of recharge capacity. (x) Lack of practice of harvesting rain water. [5] 48. The main causes of rural indebtedness : (i) Poverty : The annual income of the farmers is very low. So, they always live below poverty line. They have to borrow money for many purposes. (ii) Unproductive expenditure : Most of the farmers borrow to celebrate social customs like marriages, religious festivals, etc. Births and deaths also lead to unproductive expenditure. (iii) Litigation : The farmers borrow for litigation also. Litigation is always very expensive which adds to the problem of indebtedness. (iv) To make improvement on land : The farmers mostly borrow to make improvement on land. It is a positive thinking but it needs to be done by saving and not by borrowing. (v) Inherited debt : It is called ancestral debt also. A farmer inherits the debts of his father. It contributes a lot in rural indebtedness. [5] 49. The scheme under which one has to apply in rural areas now is Swarna Jayanti Gram Swarozgar Yojana. All the earlier self-employment generating programmes have now been re-designed and restructured to improve their effectiveness and merged into a single programme (SJGSY) from 1st April, 1999. The objective of this scheme is to help the poor families to cross the poverty line by providing them income yielding assets through a mix of bank loans and government subsidies. If the shop is to be opened in then one should apply under Swarna Jayanti Shahari Rozgar Yojana (SJSRY) which seeks to provide self-employment to urban poor. [5] ll Time : 3 Hours 15 Minutes Maximum Marks : 100 Economics Karnataka, PUE Solutions

Solution of Question Paper 8

1. (b) Frictional unemployment. [1] 2. (d) Bar diagram. [1] 3. (a) the oridinary business [1] 4. (c) Arithmetic mean. [1] 5. (c) MGNREGA. [1] 6. population [1] 7. NABARD [1] 8. America [1] 9. stability [1] 10. 1995. [1] 11. (i) (e), (ii) (a), (iii) (d), (iv) (b), (v) (c). [5] 12. Secondary data. [1] 13. X-axis or obscissa. [1] 14. Cyclical unemployment means a situation which arises as a result of different phases of trade cycle. [1] 15. Infractructure refers to the basic physical & organisational structures and facilities. Eg. buildings, roads, power needed for the operation of a society or enterprieses. [1] 16. Mixed Economic System. [1]

17. Census investigation or complete count is a method in which information is collected about every unit of the universe relating to the problem under the investigation. [2] 18. In a sub-divided bar diagram, the bar is sub-divided into various parts in proportion to the value given in the data and the whole bar represents the total. [2] 19. While constructing the Consumer Price Index, standard of living of different groups of consumers is taken into account. Therefore, different index number for different consumers should be made. [2] 20. Classification is the act of grouping of data according to their identity, similarity or resemblances. We can classify the data on the basis of : (a) Chronological classification (b) Geographical classification (c) Qualitative classification (d) Quantitative classification [2] 21. The frequency curve is obtained by drawing a smooth freehand curve passing through the points of the frequency polygons as closely as possible. [2] 16 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

22. 2 Values X X – X = x x 25 –19 361 50 +6 36 45 +1 1 30 –14 196 70 –26 676 42 –2 4 36 –8 64 38 +4 16 34 –10 100 60 +16 256 SX = 440 Sx2 = 1710

Σx2 s = N ΣX 440 where x = XX− , X ==44 ()N 10 1710 s = ==171 13.076 [2] 10 23. India has not been able to achieve 100% literacy rate because the expenditure on education of 4% of GDP is inadequate as compared to the estimated level of education expenditure of 6% of GDP. [2] 24. Co-operative marketing is a measure to ensure a fair price to farmers. Member farmers sell their surplus to the co-operative society which substitutes collective bargaining in place of individual bargaining. It links rural credit farming marketing processes to the best advantage of the farmers. [2] 25. The casual labourers do not get regular income, they do not have any protection or regulation from the government and have no job security. They also lack social benefits which permanent workers get. This makes the casual workers more vulnerable. [2] 26. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments. [2] 27. Global Death Burden (GDB) is an indicator used by experts to grade the number of people dying prematurely due to particular disease as well as the number of years spent by them in a state of disability owing to the disease. [2] 28. Footnotes are used only if there is a need to call attention to some figures or headings which, without note, might be misunderstood. [2] 29. Factors contributing to land degradation in India are : (i) Soil erosion, [½] (ii) Salinity and alkalinity, [½] (iii) Shifting cultivation, [½] (iv) Loss of vegetation due to deforestation. [½]

30. Importance of Statistics in : Economic Planning : These days almost all the countries of the world adopt the method of planning for economic development. Statistics is the most important tool in economic planning. Statistics helps economic planning by collecting data of national resources both human and natural. For drawing a plan of their use, we need the help of Statistics. Solutions 17

Business: Statistics helps in understanding various business activities. It becomes a helping hand to the business planner in many ways. A producer has to forecast demand for his business and this can be done only with the help of market research. For market research all the statistical methods have to be followed. [4] 31. Sampling is a part of the total population. It can be an individual element or a group of elements selected from the population. Although it is a sub-set, it is a representative of the population and suitable for research in terms of cost, convenience and time. The sample group can be selected on the basis of probability or a non-probability approach. A sample usually consists of various units of the population. The size of the sample is represented by 'n'. [4] 32. To convert the inclusive series into exclusive series, we can use following steps : (i) Firstly, we find the difference of the upper limit of class interval and the lower limit of the next class interval. (ii) Half of the difference is added into the upper limit of class interval and the half is subtracted from the lower limit of the class interval. The exclusive series of the given inclusive series is shown below : Class-Interval Frequency (f) 0.5 – 5.5 10 5.5 – 10.5 15 10.5 – 15.5 20 15.5 – 20.5 25 20.5 – 25.5 30 N = 100 [4] 33. Calculation of Median Cumulative Class-Interval Frequency (f ) Frequency (cf) 0 – 20 4 4 20 – 40 10 14 40 – 70 26 40 70 – 120 8 48 120 – 200 2 50 N = ∑f = 50

th  N ∴ M = Size of  2  th  50 Þ M = Size of item  2  Þ M = Size of 25 th item,

Q Which lies in 40 – 70 class interval. LL− L + 21()mc− M = 1 f 70 − 40 = 40 + ()25 −14 26 18 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

30 × 11 = 40 + 26 330 = 40 + 26

= 40 + 12.69 M = 52.7 [4] 34. X f Below 10 2 Below 20 5 Below 30 12 Below 40 23 Below 50 38 Below 60 45 Below 70 47 Below 80 50 Y 50

)

f

( 40

30 Less than

20

requency

F 10

X 0 10 20 30 40 50 60 70 80 [4] 35. Industrial growth has recorded a slow down during economic reforms. This is because of decreasing demand of industrial products due to following reasons : (i) Cheaper imports have decreased the demand for domestic industrial goods. (ii) Globalization created condition for the free moments of goods and services from foreign countries that adversely affected the local industries and employment opportunities in developing countries. (iii) A developing county like India still does not have the access to developed countries market because of high non-tariff barriers. (iv) There was inadequate investment in infrastructural facilities such as power supply. [4] 36. Differences between Physical and Human Capital : S. No. Physical Capital Human Capital 1. It increases physical goods. It increases knowledge and efficiency. 2. It is an economic and technical process. It is partly a social process. 3. Physical capital is tangible. Human capital is intangible. 4. It can be sold in the market. It cannot be sold in the market. 5. The physical capital is separable from its Human capital is not separable from its owner. owner. 6. Physical capital formation can be built Human capital formation is to be done even through imports. through conscious policy formulations. (Any four) [4] Solutions 19

37. Activities of agricultural marketing are : (i) Collection of agricultural product. (ii) Grading on the basis of the kind of produce. (iii) To keep the yield in warehouses for the production. (iv) Wholesale of the agricultural production. (v) Retail of the agricultural produce. (vi) To access the production from villages to the market by means of transport and to arrange the finance for all these activities. (Any four) [4] 38. (i) Lesser women are found in regular salaried employment as compared to men because a larger proportion of women are engaged in the economic activities without stable contracts and steady income. The stable contracts and steady income are two features prevalent in the regular salaried employment. (ii) Women are engaged in informal segments of the economy, where they are not entitled to any social security benefits. (iii) Women work in more vulnerable situations than men and have lower bargaining power and consequently are paid lesser than the male workforce. Thus, the women workers are more likely to be found in self-employment and casual work as compared to men rather than regular salaried employment. [4] 39. Working population means able bodied persons and adults. Children are unable to perform productive activities. Use of children in work is equivalent to denying them childhood. Children’s right to playing and schooling should be respected. It is doubly criminal to turn them into dull adults and old persons. In every civilized society, children’s rightful place is school and playground. Hence, children are not included in working population for the purpose of employment. [4] 40. Infrastructure is broadly classified under two categories : (i) Economic Infrastructure : Economic infrastructure refers to the elements of economic change that aid the process of production and distribution. It improves the quality of economic resources and thus raises the productivity of the economy as a whole. In this way, it serves as a support system to economic growth. Energy, transportation, communication, banking and financial institutions are some of the examples of economic infrastructure. Greater the economic infrastructure, greater will be the production and more generation of employment opportunities. Thus, expenditure incurred on the economic infrastructure can be regarded as a necessary condition for economic growth. (ii) Social Infrastructure : Social infrastructure refers to all those facilities and institutions that enhance the quality of human capital. Educational institutions, hospitals, nursing homes, housing facilities etc. are some of the examples of social infrastructures. The availability of such infrastructures raises the human productivity, thereby, improves the quality of standard of living. Unlike economic infrastructure, social infrastructure indirectly increases the productivity and production of goods and services. For example, availability of better health care and medical facilities enable a perennial supply of healthy workforce that in turn is reflected in the form of increased production levels. [4]

41. The frequency distribution summaries the raw data by making it concise and comprehensible. However, it does not show the details that are found in raw data and leads to loss of information. When the raw data is grouped into classes, an individual observation has no significance in further statistical calculations. 20 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

For example, suppose class 20–30 contains 6 observations : 25, 25, 20, 22, 25 and 28. Such data is grouped as a class 20–30, then individual values have no significance and only frequency i.e., 6 is recorded but 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 value of class mark instead of the actual values. [6] 42. 2 X R1 Y R2 D = R1 – R2 D 20 3.5 24 1 2.5 6.25 11 6 9 5.5 0.5 0.25 24 1 20 4 – 3 9.00 18 55 22 2 3 9.00 20 3.5 9 5.5 – 2 4.00 22 2 21 3 – 1 1.00

SD2 = 29.50

2 Here N = 6, SD = 29.50, m1 = 2, m2 = 2 1 1 1 1 16−+ΣD23mm− +−mm3  16−+29.50 223 − + 223 −   12 ()12 ()  12 ()12 () rk = = NN3 − 216 − 6 1 1 16−+2950 +   2 2  16−×30.50 183 =   = =−1 =−10.87 210 210 210 \ r = 0.13 [6] σ 43. (i) Coefficient of variation (CV) = ×100 X 21.2 on substituting the values we get Þ 58 =×100 X 21.2 X =×100 = 36.55 58. σ (ii) CV = ×100 X on substituting the values we get 15..6 15 6 69 = ×∴100 X =×100 = 22.60 [6] X 69 44. The present thinking with regard to relationship between nature and development is that there should be maximum exploitation of natural resources for development. As a result,people are using nature beyond its carrying capacity. Our present technology is creating a number of environmental problems. A number of non-degradable meterials are being produced in present day through the production technology. Following are some important reasons responsible for the heavy burden on nature: (i) Rise in human population in underdeveloped countries. (ii) Affluent consumption style in developed countries. (iii) Misuse of production technology in almost all the countries and poor planning of development. As a result of above, there is a reckless use of resources creating negative effects of development on the society. Solutions 21

The negative effects of development on nature are : (i) Pollution (ii) Degradation of resources. [6] 45. The importance of credit in rural development are as follows : (i) Credit for production : In this, all type of credits are included which are used for various farm activities such as credit for seeds, fertilizers, irrigation and fodder. The farmers have credit to borrow, to pay the rent on land, wage of the labourers, government tax, etc. All these activities are related to production. Therefore, the credit received to meet their needs is called productive credit. (ii) Credit for consumption : Indian farmers borrow not only for productive works but for consumption also. In this, the credit is received for the following objectives : (a) For marriage and death, (b) To repay the old debts, (c) For the repair, construction and purchase of houses, (d) For irrigation. [6] 46. Investment in education stimulates economic growth in following ways : (i) Eradicates skewed income distribution : Education not only increases the income earning capacity but also reduces the skewed distribution of income, thereby, form an egalitarian society. (ii) Raises standard of living : Education enhances the income earning capacity of people, thereby, it raises the standard of living and also improves the quality of living. (iii) One solution for other economic problems : The importance of education is not only limited to make people educated but also to facilitate an underdeveloped economy to solve different but inter-related macro-economic problems like poverty, income inequality, population, investments under-utilization of resources, etc. (iv) Increases the participation rate : It fastens economic development by increasing the participation of people in the process of growth and development. (v) Acceptability of modernization : An educated public of a nation has greater acceptability of modernization and modern techniques. This not only helps the economy to grow but also facilitates a primitive economy to break the shackles of tradition and backwardness. [6] Part ‘E’

47. With population explosion and with the advent of industrial revolution to meet the growing needs of the expanding population, the demand for resources for both production and consumption went beyond the rate of regeneration of the resources. The pressure on the absorptive capacity of the environment increased tremendously. This trend continues even today. Thus, what has happened is reversal of supply-demand relationship for environmental quality. We are now faced with increased demand for environmental resources and services but their supply is limited due to overuse and misuse. Hence, the environmental issues of waste generation and pollution have become critical today. [5] 48. Five objectives of statistical average are : (i) To present a brief picture of data : The main purpose of average is to present a simple and systematic description of the data. (ii) To represent the universe : It also helps to obtain a picture of a complete group. (iii) Basis of statistical analysis : It is the basis of statistical analysis and it analyse the data. (iv) To facilitate comparison : It helps in comparing the data of various categories. 22 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

(v) To represent complex and unorganized data : It represents complex and unorganized data into Time : 3 Hours 15 Minutes simple form. [1×5=5] Maximum Marks : 100 49. (a) Various schemes run by the Indian government to eradicate poverty directly or indirectly are: (i) Prime Minister Rozgar Yojana 1993 (ii) Rural Employment Generation Programme (iii) Swarna Jayanti Gram Swarozgar Yojana (iv) National Rural Employment Guarantee Act. [2½] (b) Values that can be added to improve the results of these anti-poverty programmes are: (i) Population control (ii) Create new employment opportunities (iii) Education (iv) Proper implementation and right targeting. [2½] ll Time : 3 Hours 15 Minutes Maximum Marks : 100 Economics Karnataka, PUE Solutions

Solution of Question Paper 9

1. (b) covariation. [1] 2. (c) class interval. [1] 3. (c) personal interview. [1] 4. (b) two dimensional diagram. [1] 5. (b) 10 years. [1] 6. enumerator. [1] 7. Compound bar. [1] 8. greater [1] 9. great divide [1] 10. Organic [1] 11. (i) (e), (ii) (d), (iii) (a), (iv) (c), (v) (b). [5] 12. Statistics does not studies qualitative phenomena. [1] 13. Data collected on different entities for a single time period is known as cross-section data. [1] 14. Giving greater freedom to economic activities through removal of all restrictions by the government is known as liberalization. [1] 15. Swarna Jayanti Gram Swarojgar Yojana was started on April 1, 1999. [1] 16. It is a situation where a person’s marginal productivity is zero. Or A situation where the number of workers engaged in a given economic activity is much more than which is actually needed is known as disguised unemployment. [1]

17. In singular sense, the term ‘statistics’ means statistical methods, i.e., it is the method of dealing with numerical facts. [2] 24 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

18. Differences between Primary and Secondary data : S. No. Primary Data Secondary Data 1. Original Not Original 2. Collected for the first time Already collected 3. Is Like raw-material Is Like finished goods 4. Costly Cheap and easy 5. More reliable Less reliable 6. No extra precaution is needed when used Extra precaution is needed

(Any four) [2] 19. Two advantages of diagrammatic presentation are : (i) To make data simple and intelligible [1] (ii) To make comparison possible. [1] 20. (i) Arithmetic mean (ii) Median (iii) Mode [2] 21. Small scale industries need protection by the government because SSIs are labour intensive, generating more employment and conducive to economic development of India. [2] 22. X f cf 12 2 2 14 3 5 16 9 14 18 21 35 20 10 45 22 5 50 Sf = N = 50

N 1 th 51 th  +    th Q1 = size of   item = size of   item = size of 12.75 items = 16  4   4  th  N + 1   51  Q = size of   item = size of 3  item = size of 38.25th item = 20 3  4   4 

Inter–quartile Range = Q3 – Q1 = 20 – 16 = 4 QQ31− 20 −16 4 Coefficient of Quartile Deviation = = ==01. 1 [2] QQ31+ 20 + 16 36 23. These assets increase the employment and income. The capital formation also increases. As a result, poverty also reduces. [2] 24. People spend money to acquire information because it not only increases their salaries and perks but it increases their educational level and capital information. [2] 25. Differences between Agriculture Labour and Cultivator : S. No. Agriculture Labour Cultivator 1. Works in others land Works in his own land 2. Not responsible for profit or loss Responsible for profit and loss 3. Low socio-economic status Good socio-economic status 4. Do not possess agricultural implements Possess agricultural implements 5. Wages are fixed Income is not fixed 6. Migrates Do not migrate (Any four) [½×4=2] Solutions 25

26. Rural development is a continuous and comprehensive social-economic process, attempting to improve all aspects of rural life particularly to improve the standard to living of lower income group of people and to stabilize their development process. [2] 27. Self-employment is a major source of livelihood for both men and women as this category accounts for more than 50% of the workforce. [2] 28. Tele density means the number of telephone consumers after 100 per persons. [2] 29. Harmful gases are :

(i) Carbon dioxide (CO2) [½] (ii) Methane gas [½]

(iii) Nitrogen dioxide (NO2) [½]

(iv) Sulphur dioxide (SO2). [½]

30. There can be following reasons for studying economics : (i) How to get maximum satisfaction with our limited resources. (ii) How can a producer get maximum profit with the best utilization of resources. (iii) How can society achieve social welfare. (iv) Economics helps in studying the current problems of the economy. (v) Economics helps for price determination of commodities. (Any four) [1×4=4] 31. (i) Are you satisfied with the working conditions of the factory? (ii) Are you a member of labour union? (iii) If you intend to take loan, would you like to prefer moneylender? (iv) If you intend to take loan, would you like to prefer bank? (v) Are there only two sources of statistical data? [1×4=4] 32. Importance or Utility of Diagrams are : (i) Diagrams give a very clear picture of data. Even a layman can understand it very easily in a short time. (ii) We can make comparison between different samples very easily. We don’t have to use any statistical technique further to compare. (iii) This technique can be used universally at any place and at any time. This technique is used almost in all the subjects and other various fields. (iv) Diagrams have impressive value also. Tabulated data has not much impression as compared to diagrams. A common man is impressed easily by good diagrams. (v) This technique can be used for numerical type of statistical analysis, e.g. to locate Mean, Mode, Median or other statistical values. [1×4=4]

33. N1 = 100 and X = 20

∴ Total value of distribution = N1 × X = 100 × 20 = 2,000

N2 = 200 and X = 10

∴ Total value of distribution = N2 × X2 = 200 ×10 = 2,000 NX1 + NX2 Combined Mean = 1 2 NN12 26 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

2,,000 + 2 000 Xc = 100 + 200 4,000 = = 13.33 [4] 300 34. In a continuous series, the mode is determined by two methods, as given below : (i) Inspection Method : If the items are connected in one class, we determine the modal class and then to determine the exact value, we apply the formula : FF− L + 10×i M0 = 1 2FF10−−F2 (ii) Grouping Method : If values are connected at more than one value, then a grouping table and an analysis table is prepared in the same way as in discrete series and to know the exact value of the mode, we apply the formula given above. [4] 35. Organization of WTO : (i) Existence on January 1, 1995 (ii) 161 members nations (iii) Head Quarter in Geneva (iv) Headed by Ministerial Conference consisting of representatives of all member nations. General Council for Operations Functions : [2] (i) Implementation of agreements (ii) Forum of Negotiations (iii) Settlement of Disputes (iv) Co-ordination with other organisations (v) Watch-dog of Foreign Trade. [2] 36. Following observations relate to procedural details while fixing the poverty line in India : (i) In the estimation of consumption cut-off, only private consumption expenditure is considered. (ii) In private consumption expenditure, we consider not only food items but also non-food items as well. (iii) Frequencies are recorded against each class interval, indicating a particular level of consumption. (iv) Finally, head count ratio is worked out showing poor and non-poor separately for the rural and urban areas. [4] 37. The National Food for Work Programme was launched in November, 2004 in 150 most backward districts of the country, identified by the Planning Commission in consultation with the Ministry of Rural Development and the State Government. The objective of the programme was to provide additional resources apart from the resources available under the Sampoorna Gramin Rozgar Yojana to 150 most backward districts of the country, so that generation of supplementary wage employment and providing food security through creation of need based economic, social and community assets in these districts are further intensified. The scheme was 100% centrally sponsored and was open to all rural poor who were in need of wage employment and wanted to do manual and unskilled work. The focus of the programme was on work relating to water conservation, drought proofing and . Flood control or protection rural connectivity in terms of all-weather roads and any other similar activity for economic sustainability could be included. Food grains were given as part of wages under the NFFWP, the rural poor at the rate of 5 kg per man per day and the remaining portion may be given in cash. More than 5 kg food grains can be given to Solutions 27

the labourers under this programme in exceptional cases subject to a minimum of 25% of wages to be paid in cash. The programme has now been subsumed in National Rural Employment Guarantee Act, which has come in force in 200 identified districts of the country including 150 NFFWF districts. [4] 38. Co-operation is a voluntary association belonging to equal socio-economic status to achieve common goal and well-being, on the principle “Each for all and all for each”. Types of Co-operative societies : I. Credit Co-operative Society (a) Agriculture Credit Co-operative Society (i) Primary Co-operative (ii) District Control Co-operative (iii) District Control Banks (iv) Primary Land Development Bank (v) Central Land Development Bank (b) Non-Agriculture Credit Co-operative Society (i) Urban Co-operative Banks (ii) Grain Merchant Co-operative Banks (iii) Employees Co-operative Society (iv) House building Co-operative Society (v) Women Co-operative Society. II. Non-Credit Co-operative Society (i) Industrial Co-operative Society (ii) Producers Co-operative Society (iii) Consumer Co-operative Society (iv) Mixed Co-operative Society. [4] 39. Green Revolution : (i) The combined use of HYV seeds and increased use of fertilizers and developed irrigation facility jointly led to an increase in the production of rice and wheat. This increase in the production of the food grains is known as the Green Revolution. (ii) It led to an increase in the production, especially, of rice and wheat. (iii) As a result of this revolution, India becomes self- sufficient in the production of wheat and rice. Golden Revolution : (i) The rapid growth in the production of the horticulture crops such as fruits, vegetables, tuber crops, flowers, etc. is known as Golden Revolution. (ii) It led to an increase in the production of fruits, vegetables, flowers, aromatic plants, spices, etc. (iii) As a result of this revolution, India becomes a world leader of the production of mangoes, bananas, coconut, and spices. [4] 40. When the resources are extracted at more rapid pace than its regeneration, then we say that the carrying capacity of the environment reduces. The environment fails to perform its function of sustaining life and this results in an environmental crisis. These environmental crisis are the result of a fall in the absorptive and carrying capacity of the environment. In today’s scenario, the rate of consumption of resources is faster than the rate of their production. Consequently, the resources get exhausted quickly. Renewable resources get renewed or replenished quickly. These are unlimited and are not affected by human activities such as solar and wind energy. Energy crisis can be overcome by the increased use of cost-effective technology of searching the renewable resources of energy. [4] 28 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

41. Marks (X) f cf 0–10 3 3 10–20 4 7 20–30 2 9 cf 30–40 median class 7 f 16 40–50 10 26 N = Sf = 26

th th  N   26  M = size of   item = size of   item  2   2  = size of 13th item lies in group 30–40 hence median class is 30–40 N − cf 2 M = L + ×i 1 f

 13 − 9  40 = 30 +  ×=10 30 + = 30 + 5.71 = 35.71  7  7

Median = 35.71 [6] 42. A pie diagram is a chart of circular shape broken into subdivisions. The size of the sections indicates the proportion of each component part to the whole. [2] Steps for constructing Pie diagrams (i) Convert the absolute value of various parts into percentage values of the total. (ii) The percentage values are converted into corresponding degrees ie., as a part of 360°. Degree of Component value any component part = ×360 Total value (iii) Construct a circle of a suitable size with a compass. (iv) Show each value in the circle clockwise. For this take a radius as base line to draw the angles. After first component is drawn, the new line will become base for second component. Similarly angular presentation of all components is to be done. [4] 43.

Commodity (Qty.) Q0 (Price) P0 (Price) P1 Weights Price Relative RW (1995) (1995) (2005) W = p q 0 0  P1   ×100  P0  A 10 80 160 800 200 1,60,000 B 20 40 70 800 175 1,40,000 C 30 60 120 1800 200 3,60,000 D 10 25 100 250 400 1,00,000 SW = 3,650 SRW = 7,60,000 ΣRW 76,,0 000 P = = = 208.22 [6] 01 ΣW 3,650 Solutions 29

44. Problems faced by the power sector are as follows : (i) The installed capacity of India to generate electricity is not sufficient enough to meet an annual economic growth of 7%. (ii) The State Electricity Boards (SEBs) that distribute electricity suffered a great loss of more than ` 500 billion due to transmission and distribution of electricity. (iii) The wrong pricing of electricity like supply of electricity at subsidized rates to agricultural sector and theft of electricity has exaggerated the problems of power sector. (iv) The high power tariffs and prolonged power cuts is another challenge in the power sector. (v) The Thermal Power Station faces the scarcity of the raw materials to generate electricity. [6] 45. Following are the three services needed in supply of electricity : (i) Generation of electricity (ii) Transmission of electricity (iii) Distribution of electricity. All these services should be in different hands. Transmission of electricity should be in the hands of the government. The government and private sector may operate in the areas of generation of electricity and distribution of electricity. It would bring in more and more financial resources in power sector as well as competition. [6] 46. Before the advent of industrial revolution, the rate of resource extraction was less than the rate or regeneration of these resources. But with expanding population and its growing needs, the demand for resources for both production and consumption went beyond the rate of regeneration of the resources. This has resulted in a reversal of supply-demand relationship for environmental resources. As now there is very high demand for environmental resources and services, but their supply is limited due to overuse and misuse. [6] Part ‘E’

47. We will find CV of both the assessments to find consistency 2 2 Subjects Marks in X – X dx Marks in dy = (X – Y) dy Ass I (X) Ass. II (Y) English 10 –4 16 8 –4 16 Economics 8 –2 04 4 –2 04 Maths 6 0 0 6 0 0 Accounts 14 2 04 12 2 04 PE 12 4 16 10 4 16 N = 5 SX = 50 Sd2x = 40 Sd2y = 40

ΣΣX 50 dx2 40 (a) X ====10,. σ ==82= 828 xxN 5 N 5

ΣX 40 Σdy2 40 Xyy====8,. σ ==82= 828 N 5 N 5 σ 2.828 CV of I assessment Marks = x ×=100 ×=100 28.%28 Xx 10

σy 2.828 CV of II assessment Marks = ×=100 ×=100 35.%37 Xy 8 Hence CV of Assessment I has lower degree of variability as compared to Assessment II marks. So Assessment I marks are more consistent. [5] 30 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

48. The major factors responsible for high growth of the service sector are as under : Time : 3 Hours 15 Minutes (i) Development of means of transport and communication due to globalization. Maximum Marks : 100 (ii) Development of banking and insurance sector due to the policy of privatization. (iii) Expenditure on the development of infrastructure. (iv) Investment in different service sectors due to indigenous and foreign institutional investment. (v) Rapid industrialization. [1×5=5] 49. Some studies have stated that there existed deep rooted inequalities in India and the economic reform policies initiated by the government in 1991 further aggravated the inequalities. Reforms, led to an increase in the income of those who were already rich. Quality of consumption of only high income groups increased, economic growth has not trickled down to the poorer sections of the society. Growth has been concentrated only in some selected areas in the service sector such as tele communication, information technology, finance, entertainment, travel, hospitality services, real estate and trade. Vital sectors such as agriculture and industry which provide livelihoods to millions of people in the country have not been benefitted much from reforms thereby increasing income disparities. Besides, large scale production has been promoted under reforms at the cost of small scale industries again leading to concentration of economic power with large industrial houses and MNCs. [5] ll Time : 3 Hours 15 Minutes Maximum Marks : 100 Economics Karnataka, PUE Solutions

Solution of Question Paper10

1. (b) Business Process Outsourcing [1] 2. (a) 1921 [1] 3. (c) Imports & exports of a country [1] 4. (a) publicity. [1] 5. (b) the average of the largest and the smallest observation. [1] 6. Direct interview [1] 7. class limit [1] 8. banking [1] 9. 100 [1] 10. Bio energy. [1] 11. (i) (d), (ii) (e), (iii) (a), (iv) (c), (v) (b). [5] 12. Main sources of secondary data are : (i) Central Statistical Organization (CSO), (ii) National Sample Survey Organization (NSSO). [1] 13. Negative Slope. [1] 14. Geneva-Switzerland. [1] 15. Socially, economically and politically empowering women to bring them to the main stream of the society. [1] 16. One which is carried on mainly in a house with the help of the members of the family by using simple and hand operated tools is known as cottage industry. [1]

17. It is a Science because it has certain rules, principles and methods which help us to reach to universal truth. [2] 18. Secondary data are those data, which have already been collected by others. Such type of data are usually variable in journals, periodical, dailies, research publication, official records, etc. [2] 19. Time series graphs are of two types : (i) One variable graph. [1] (ii) Two or more variable graph. [1] LL− 20. Median = L + 21()mc− 1 f

where,

L1 = Lower limit

L2 – L1 = Class interval of the group 32 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

f = Frequency of Median group m = Size of the Median class c = Cumulative frequency of the class preceding the median class. [2] 21. Table 1 : Grouping Table Wages in I II III IV V VI (`) Frequency (1+2) (2+3) (1+2+3) (2+3+4) (3+4+5) 700 2 2 + 4 = 6 2 + 4 + 8 800 4 = 14

900 8 8 + 10 = 18 4 + 8 = 12 4 + 8 + 10 8 + 10 + 5 1000 10 = 22 = 23

1100 5 5 + 6 = 11 10 + 5 = 15 10 + 5 + 6 1200 6 = 21

Table 2 : Analysis Table Column No. 700 800 900 1000 1100 1200 I ü II ü ü III ü ü IV ü ü ü V ü ü ü VI ü ü ü Total 1 3 6 3 1

Mode = ` 1,000 as it has occured for maximum no. of times. [2] 22. In case of linear correlation, the ratio of change between two variables is constant whereas in case of non linear correlation, the ratio of change between two variables is variable. [2] 23. Multilateral Agreements of WTO : (i) General Agreement on Trade and Tariff (GATT) [½] (ii) General Agreement on Trade in Services (GATS) [½] (iii) Trade Related Intellectual Rights (TRIPS) [½] (iv) Trade Related Investment Measures (TRIMS) [½] 24. The inability to secure the minimum consumption requirement by a person is called poverty. People who consume less than 2,400 calories of food per day in rural areas and 2,100 calories of food per day in urban areas are said to be living below poverty line. [2] 25. (i) Swarna Jayanti Gram Swarozgar Yojana (SGSY) (ii) Swarna Jyanti Shahari Rozgar Yojana (SJSRY) (iii) Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) (iv) Pradhan Mantri Gram Sadak Yojana (PMGSY) (v) National Food for Work Programme (NFWP) (vi) Providing Urban Amenities in Rural Areas (PUARA) (vii) Antyodaya Anna Yojana (AAY) (viii) Valmiki Ambedkar Awaas Yojana (VAMBAY/ VAAY) (Any four) [½×4=2] 26. Maintenance of the soil fertility and prevention of soil erosion is known as soil conservation. Measures : (i) Afforestation Solutions 33

(ii) Planting trees (iii) Construction of embankments (iv) Crop rotation (v) Use of farm manure and fertilizer (vi) Construction of drainages. (Any four) [1+1=2] 27. Those people who are not hired by their employers on a regular or permanent basis and do not get social security benefits are said to be casual labourers. [2] 28. It is unorganized sector of economy. It includes all those private sector enterprises in which less than 10 workers are employed and do not get social security benefits. [2] 29. With the help of photovoltaic cells, solar energy can be converted into electricity. This technology is extremely useful for remote areas and for places where supply of power through grid or power lines is either not possible or proves very costly. [2]

30. Statistics is widely used in modern times. Initially, it was employed by the state of collective information in public affairs but it was not used in different spheres of man’s life. Now a days, statistics used by workers, labour unions, traders, insurance companies, auditors, businessman, politician, etc. This is clear from following facts : (i) Useful to economists : Statistics serves as a raw material to the economists in making certain economic laws. (ii) Useful to finance ministers : For making sound and balanced annual budget of the country, statistics plays a very important role. He too takes the help of accurate and reliable data regarding the state of affairs which is provided by statistics. (iii) Useful to bankers : Statistics is very useful for bankers and banking industry. Every bank has a statistical department that helps to make its own policy. (iv) Useful to an individual : Statistics is very useful for an individual. It provides him factual knowledge of prices of commodities in different markets. He also comes to know about the national products of social, political and economic conditions. (v) Useful to businessman : It is necessary for an efficient businessman to have the full knowledge on the factors which influence his business decisions. (Any four) [1×4=4] 31. In Indirect Oral Investigation, data is collected through indirect sources. Persons who are likely to have information about the problems, are interrogated and on the basis of their answers, factual data have to be compiled. Most of the commissions of enquiry appointed by government collect primary data by this method. The accuracy of the method depends largely upon the type of persons interviews and hence these persons have to be selected very carefully. Merits of indirect oral investigation : (i) It is economical in terms of time, cost and manpower. (ii) Confidential information can be collected. (iii) Information is likely to be unbiased and reliable. (iv) This method is relatively simple to understand. Demerits of indirect oral investigation : (i) The degree of accuracy of information is less. (ii) This method leads to doubtful conclusion due to ignorance and carelessness of the witness. [4] 32. Class-Interval Tally Marks Frequency 0 – 5 – – 5 – 10 || 2 34 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

10 – 15 ||| 3 15 – 20 |||| ||| 8 20 – 25 |||| 4 25 – 30 ||| 3 N = 20 [4] 33. S. No. Items Exp. ` (in crore) Calculation Angle from the center

1. Drinking Water 300 300 ×360 = 108º 1000

2. Road 250 250 ×360 = 90º 1000

3. Health 200 200 ×360 = 72º 1000

4. Education 150 150 ×360 = 54º 1000

5. Electricity 100 100 ×360 = 36º 1000 Total 1,000 100 = 360º PIE CHART

Drinking Water Road 108º 90º 36º Electricity 72º 54º Health Education

Positions of the segment may vary but the % of each segment should be the same as mentioned above. [4] 34. Merits of Arithmetic Mean : (i) To present a brief picture of data : The main purpose of average is to present a simple and systematic description of the data. (ii) To represent the universe : It also helps to obtain a picture of a complete group. (iii) Basis of Systematical Analysis : It is the basis of systematical analysis and analyzes the data. (iv) To facilitate comparison : It helps in comparing the data of various categories. [2] Demerits of Arithmetic Mean : (i) The Arithmetic Mean is highly affected by extreme values. (ii) It cannot average the ratios and percentages properly. (iii) It is not an appropriate average for highly skewed distributions. (iv) It cannot be computed accurately if any item is missing. [2] Solutions 35

35. (i) Economic structure tells us all about the economic conditions, nature and level. (ii) The production sector relates to division of the economy or economic activities in production sector. (iii) The economic activities are divided into three main sectors : (a) Primary (b) Secondary (c) Tertiary. [4] 36. This programme was introduced on August 15, 2008. In this, two employment generation programmes have been merged : (i) Prime Minister Rozgar Yojana (PMRY) (ii) Rural Employment Generation Programme (REGP). Main Objective : The main objective is generation of new employment opportunities through micro enterprises. [4] 37. The value of equality is the most important while dealing with the problem of poverty. It is necessary for the government of the country to ensure that the people living below poverty line are adequately taken care of government and ensure to achieve equitable distribution of income and wealth by introducing welfare measures for the poor and the downtrodden. [4] 38. Socio-economic status of agriculture labourers are : (i) Unorganized in nature : Agricultural labourers are illiterate, ignorant, scattered, disunited, poor and conservative, they are unorganized and unable to form unions to protect and preserve their interest. (ii) Low level of living and low wages : Wages and earnings of agricultual labourers is very low. As their wages are quite low, their standard of living is also very low. (iii) Caste and gender composition : Most of the agriculture labours in India belong to SC, ST and other backward classes. They constitute 75% of the agriculture labours. (iv) Bonded Labour System (Abolition) Act, 1976 : A legislation was passed known as Bonded Labour System (Abolition) Act, 1976. Under this act, the Bonded Labour System was abolished throughout the country. (v) Child labour and its prohibition : In 1986, government of India assessed Child Labour Prohibition Act. This act prohibits the appointment of children below the age of 14 in any hazardous or non- hazardous jobs. From 15th Sept., 2006 onwards employment of girl children (below the age of 14) in any domestic work has been prohibited. (vi) Absence of social security measures : Indian agricultural labourers are not provided with any social security measures like accident benefits, old age pensions, etc. Krishi Shramik Samajik Suraksha Yojana of 2001 and Aam Admi Bima Yojana of 2007 provided insurance facilities to agriculture labourers. [4] 39. Loss of the top fertile soil caused by natural and man-made things are called as soil erosion. The causes of soil erosion : (A) Natural Causes : (i) Heavy rains (ii) Cyclones (iii) Strong winds (iv) Floods (v) Sea encroachment, etc. (B) Man-made Causes : (i) Deforestation (ii) Over grazing (iii) Defective methods of cultivation (iv) Faulty irrigation methods (v) Removal of top soil for making bricks, tiles, etc. [4] 40. Sustainable development in itself makes it obligatory for the development process to be such that the basic needs of not only the present generation, but also of the future generations are taken care of. It becomes the moral duty of this generation to handover the earth to the future generation in good form. 36 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

Therefore, if the resources are overused or misused, they will deplete so fast that the production capacity of the future generations would not be sustainable. Sustainable development aims at maximizing the welfare of both present and future generations. It does not mean hindering the existing pace of economic growth, but refers to a judicious or optimum utilization of resources in such a manner that pace of economic growth sustains with inter-generational equity. [4]

41. Calculation of Median Cumulative Class-Interval Frequency Frequency 150 8 8 152 6 14 156 7 21 160 5 26 161 3 29 N= Sf = 29

th  N + 1  M = Size of   item  2  th  29 + 1  = Size of   item  2  = Size of 15th item Which lies in cf 21, Hence, M = 156 [6] 42. S. No X |D| = |X – M| 1 6 4 2 8 2 3 10 0 4 12 2 5 14 4 N = 5 S|D| = 12

th th  N + 1   5 + 1  Median = Size of   item = Size of   item  2   2  Size of 3rd item = 10 Σ||D 12 (a) Mean deviation from median (M) = ==24. N 5 M.D.M 24. (b) Coefficient of mean deviation = ==02. 4 [6] M 10 43. Liberalisation is defined as the lessening of govt. regulations in a country to allow private sector companies to operate business transactions with fewer restrictions. The main objectives of Leberalisation policy are : (i) To increase competition among donestic industries. (ii) To increase foreign capital formation and technology. (iii) To decrease debt burden of the country. (iv) To encourage exports & imports of goods & services. Solutions 37

Liberalisation Involves : (i) Industrial Section Reforms : Derugation of Industrial sectors, Industrial licensing was abolished for many products. Many goods produced by SSI have also been dereserved. Public sector industries were reduced to merely two. Freedom from Licensing gave freedom from capacity constraints & freedom to import capital goods to private sector. (ii) financial Sector Reforms : Liberalisation implied a substantial shift in the role of RBI from a regulator to a facilitation of the financial sector. Free play of market forces led to the emergence of domestic as well as international private bankers, playing a significant role in growth and development of the economy. (iii) Fiscal Reforms : Liberalisation has made tax structure simplified and moderated efforts were made to ensure uniform application of GST across all states, implying a balanced regional growth & tax revenue of the govt. (iv) External Sector Reforms : It includes devaluation of Indian rupee to promote exports. Market competition in place of protection of domestic industry by fixing quotas & tariffs has increased efficiency which implies growth. [6] 44. A situation where able workers who are capable of working both physically and mentally at the existing wages, do not get employment is called unemployment. Types : (i) Open unemployment : By open unemployment we mean all those unemployed who have no work to do while they are willing to work on prevailing wage rate. (ii) Disguised unemployment : Disguised unemployment means that number of workers employed in a job are much more than actually required. It is invisible in nature but when some workers are withdrawn from a work, total production remains unchanged. It is said to be disguised unemployment. (iii) Seasonal unemployment : It refers people are unemployed only during a part of a year. It is mainly present in the agricultural sector. [6] 45. Occupational distribution in India refers to the ‘distribution of working population in different occupations.’ Occupations are divided into three categories, namely : (i) Primary Sector : Includes agriculture and allied activities such as fishing, forestry, mining, poultry, dairy, etc. (ii) Secondary Sector : Includes industry like manufacturing, construction, power generation, etc. (iii) Tertiary Sector : Includes Trade, Transport, Banking and Finance, Communication, Insurance, Health, Education, etc. Occupational distribution as per 2001 census in percentage is : (i) Primary Sector : 58% (ii) Secondary Sector : 18% (iii) Tertiary Sector : 24% [6] 46. Economic Reforms or New Economic Policy refers to various policy measures and changes introduced since 1991. New Economic Policy was to create a new economic environment for economic development by removing existing obstactes. These reforms concentrated on : (i) Introduction of “free of control” economy. (ii) A shift from public to private sector. (iii) Free entry to foreign private investment. Thus, the basic pillars of new economic policy are : liberalization, privatization and globalization (LPG). [6] 38 OSWAAL Karnataka PUE, Sample Question Papers, Economics, I PUC

Part ‘E’

XI. Answer any two of the following Project oriented Questions. (5 × 2 = 10) 47. (i) Half of the total population in India constitutes women. Women are lagging behind in education, health care, and economic participation as compared to men. The child sex ratio has declined from 945 in 1991 to 927, showing the growing incidents of female feticide in the country. (ii) The married women population close to 3,00,000 have already given birth to one child. About 50% the married between the age of 15 and 49 suffer from anemia. This resulted in 19% of maternal deaths. (iii) The major cause of maternal morbidity and mortality in India is abortions. These factors point towards the women’s health due to which it has become a matter of great concern. [5] 48. Four pressing environmental concerns of India are : (i) Land degradation and solid waste management, [1] (ii) Biodiversity loss, [1] (iii) Air pollution with special reference to vehicular pollution in urban cities, [1] (iv) Management of fresh water. [1] Correction for environmental damages involves opportunity costs as the industrial development in past has polluted and dried up rivers and other aquifers making water of no economic good. [1] 49.

Items Prices (Last Prices Qty. W. P R.W. 1 ×100 Week) P0 (Current P1) R = P0

Rice 60 80 20 80 20×133.3=2666 ×100 60 = 133.3 Toordal 120 130 20 130 20×108.3=2166 ×100 120 = 108.3 Tomato 60 50 20 50 20×83.3=1666 ×100 60 = 83.3 Onion 30 60 10 60 10×200=2000 ×100 30 = 200 Milk 36 36 30 36 30×100=3000 ×100 36 = 100 100 SRW = 11,498

ΣRW 11, 498 CPI = = = 114.98 ΣW 100 This indicates that CPI in current week has increased by 14.98% as compared to base year. ll