MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

Explain the steps involved in construction of a discrete series.

Read the following text carefully and answer the questions 1-2 on the basis of the same:
In a centrally planned economy, the government or the central authority plans all the important activities in the economy. The central authority may try to achieve a particular allocation of resources and a consequent distribution of the final combination of goods and services which is thought to be desirable for society as a whole. For example, if it is found that a good or service which is very important for the prosperity and well-being of the economy as a whole is not produced in adequate amount by the individuals on their own, the government might try to induce the individuals to produce adequate amount of such a good or service or, alternatively, the government may itself decide to produce the good or service in question.

1. State one difference between centrally planned economy and market economy.
2. State three characteristics of a centrally planned economy.

Explain the advantages and disadvantages of textual presentation of data.

What is ‘loss of information’ in classified data?

Define marginal opportunity cost along a PPC.

Distinguish between individual demand and market demand.

Explain the law of supply with the help of a supply curve.

From the data given below, calculate Karl Pearson's coefficient of correlation between density of population and death rate by step deviation method.

Region	Area (in sq km)	Population	Death
A	200	40000	480
B	150	75000	1200
C	120	72000	1080
D	80	20000	280

State the concepts of increase and decrease in supply with the help of figures.

A consumer's budget is ₹40. He is buying Good-1 and Good-2. Price of Good-1 is ₹8 per unit, and of Good-2 is ₹10 per unit. Draw a budget line on the basis of these figures.