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

What is the difference between a price index and a quantity index?

Calculate the index number for the period year 2008 to 2015, taking 2008 as base year:

Year (₹)	2008	2009	2010	2011	2012	2013	2014	2015
Price (₹)	75	50	65	60	72	90	75	70

Compute mode of the following series:

Mid-values	5	10	15	20	25	30	35	40	45
Frequency	7	13	19	24	32	28	17	8	6

Explain the relationship between (i) average cost and marginal cost, & (ii) total cost and marginal cost.

Explain the law of variable proportions in terms of the behaviour of total physical product with the help of a diagram.

Write the formulae for Lasperey's, Paasche's and fisher's quantity index numbers.

Explain the relationship between AP and MP, using a suitable diagram.

Calculate the median of the following frequency distribution.

Class Interval	Frequency
10-20	4
20-40	10
40-70	26
70-120	8
120-200	2

Explain the concept and uses of index numbers.

Explain with the help of diagrams, the effect of the following on demand for a good:
(i) Rise in income of its buyers.
(ii) Fall in income of its buyers.