MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

Karl Pearson's Method is superior to Rank Correlation. Do you agree? Justify your answer.

Find median of the following distribution.

Age	0-10	10-20	20-30	30-40	40-50	50-60	60-70	70-80
No. of persons	12	18	35	42	50	45	20	8

A consumer consumes only two goods. Explain his equilibrium with the help of utility approach.

Which of the following errors is more serious and why?

1. Sampling error.
2. Non-Sampling error.

Draw a production possibility curve. What do the points inside and outside this curve indicate? Explain.

Name various methods of studying correlation. Describe any one.

Calculate mode of the following series:

Class	10-19	20-29	30-39	40-49	50-59	60-69	70-79
Frequency	10	12	18	30	16	6	8

Answer the following questions
(i) If a product price increases, a family's spending on the product has to increase. Defend or refute.
(ii) The demand for a good double due to 25% fall in its price. Calculate its price elasticity of demand

Calculate coefficient of rank correlation from the following data.

X	48	33	40	9	16	16	65	24	16	27
Y	13	13	24	6	15	4	20	9	6	19

What is total cost, average cost and marginal cost? Explain the relationship between average cost and marginal cost with the help of a table and diagram.