CBSE Class 11 Commerce Economics · Ch 1: Introduction

Topics in this test

Difficulty: 3 easy · 9 medium · 18 hard

Sample questions with answers

The first 5 questions of this free test.

1. Q1. A consumer has to decide how to spend a limited income of ₹5,000 on many different goods that he wants to buy. The basic economic situation that forces him to make such a choice is best explained by:

   • A. Limited wants but unlimited means to satisfy them
   • B. Equal wants and equal means for every person
   • C. Unlimited wants and unlimited means to satisfy them
   • D. Unlimited wants but limited means to satisfy them
   Solution

   Economic problems arise because human wants are unlimited but the means (income/resources) to satisfy them are limited, forcing people to make choices.

2. Q2. Match the economic activity in List-I with its meaning in List-II: List-I: (a) Consumption (b) Production (c) Distribution List-II: (1) Creating goods and services to satisfy wants (2) Sharing of the nation's income among different factors (3) Using up of goods and services to satisfy wants

   • A. (a)-(2), (b)-(1), (c)-(3)
   • B. (a)-(1), (b)-(2), (c)-(3)
   • C. (a)-(3), (b)-(1), (c)-(2)
   • D. (a)-(3), (b)-(2), (c)-(1)
   Solution

   Consumption means using up goods to satisfy wants, production means creating goods and services, and distribution means sharing income among the factors of production.

3. Q3. A student claims: 'Statistics can prove anything and therefore its conclusions can never be trusted.' Which limitation of statistics is being wrongly stated here?

   • A. Statistics studies individuals and ignores groups completely
   • B. Statistical results are always exact and never true on an average
   • C. Statistics studies only qualitative facts and so cannot be measured
   • D. Statistics can be misused, so results are reliable only when data are used honestly and properly
   Solution

   Statistics does not prove anything by itself; it is only a tool that can be misused by people, so the fault lies with the user, not the subject.

4. Q4. Which one of the following is NOT a characteristic (quality) that a set of numerical facts must have to be called 'statistics' in the plural sense?

   • A. They should be an aggregate of facts
   • B. They should be numerically expressed
   • C. They should be collected for a pre-determined purpose
   • D. They should be a single isolated figure unrelated to other figures
   Solution

   Statistics must be an aggregate of facts, numerically expressed and collected for a purpose; a single isolated figure unrelated to others is not statistics.

5. Q5. Assertion (A): Statistical laws are true only on an average. Reason (R): Statistics studies aggregates and not individual units in isolation. Choose the correct option:

   • A. Both A and R are true but R is not the correct explanation of A
   • B. Both A and R are true and R is the correct explanation of A
   • C. A is true but R is false
   • D. A is false but R is true
   Solution

   Because statistics deals with groups rather than single individuals, its conclusions hold true on an average, so R correctly explains A.

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