Economics Class 11 Solved Question Paper 2026 | CG Board Model Paper with Answers

Navbodh Pariksha Saar Class 11 Economics Solved Question Paper 2026 for CG Board students. Includes MCQ, Short Answer, Long Answer, Correlation, Index Number, Human Capital, Globalisation and Numerical Solutions in simple English.

Written By: Ujjwal Matoliya

📘   Model Paper (Solved)

✅ Q.1 (A) Choose the Correct Answer

1. The process of presenting data in the form of a table is called:
✔ (d) Tabulation

2. Out of these which is not a method of measurement of central tendency?
✔ (d) Karl Pearson method

3. Small scale type of industries:
✔ (a) Labour intensive

4. What is the % of world’s population lives in India?
✔ (c) 17.5%

5. China’s economy in terms of sectoral share in GDP depends on:
✔ (b) Secondary Sector

✍ (B) Very Short Answer Type Questions

1. How many sources of data are there? Name them.

Answer:
There are two sources of data:

1. Primary Data

2. Secondary Data

2. When was new economic policy implemented?

Answer:
The New Economic Policy was implemented in 1991.

3. What do you mean by human capital formation?

Answer:
Human capital formation means increase in the number of educated, skilled and experienced persons in a country.

4. What was the objective of commune?

Answer:
The main objective of commune was collective farming.

5. In which area China is ahead of India and Pakistan?

Answer:
China is ahead in:

• Human Development

• GNP per capita

📖 Q.2 Define Primary Data.

Answer:
Primary data refers to the data which is collected first-hand by the investigator for a specific purpose.

📖 Q.3 What is Inclusive Series?

Answer:
Inclusive series is a classification in which both upper and lower limits are included in the class interval.

Example: 10–20, 20–30 etc.

📖 Q.4 What are the desirable properties of the base period or base year?

Answer:
Desirable properties of a base year:

1. It should be a normal year (no war, flood, crisis).

2. It should not be too far in the past.

3. It should be free from abnormal fluctuations.

4. Data should be easily available.

📖 Q.5 Define Consumer Price Index (CPI).

Answer:
Consumer Price Index is an index number that measures the average change in retail prices of goods and services consumed by consumers over a period of time.

📖 Q.6 What was the focus of economic policies pursued by the colonial government in India? What were the impacts?

Answer:

Focus:

1. Promotion of British industries.

2. Export of raw materials from India.

3. Import of finished goods from Britain.

4. Development of railways mainly for trade.

Impacts:

1. Decline of Indian handicrafts.

2. De-industrialization.

3. Poverty and unemployment increased.

4. Backwardness of agriculture.

📖 Q.7 Write any two characteristics of Robbins’ definition of Economics.

Answer:

According to Lionel Robbins, “Economics is the science which studies human behaviour as a relationship between unlimited wants and scarce means which have alternative uses.”

Two characteristics:

1. Human wants are unlimited.

2. Resources are scarce and have alternative uses.

📖 Q.8 Explain the merits of Karl Pearson’s Coefficient of Correlation.

Answer:

Merits:

1. It gives a precise numerical value.

2. It is based on all observations.

3. It is widely used and reliable.

4. It shows both direction and degree of relationship.

📊 Q.9 Calculate Coefficient of Correlation by Karl Pearson Method

Given Data:

X	12	9	8	10	11	13	7
Y	14	8	6	9	11	12	3

Using Karl Pearson formula:

$$r = \frac{Σxy}{\sqrt{Σx^2 Σy^2}}$$

After calculation,

Coefficient of Correlation (r) ≈ +0.94

👉 This shows a high positive correlation between X and Y.

📊 Q.10 Explain the supply-demand reversal of environmental resources.

Answer:

Earlier, environmental resources were abundant and demand was limited.

But due to:

• Population growth

• Industrialization

• Urbanization

Demand increased rapidly while supply decreased.

This situation is called Supply-Demand Reversal, where demand exceeds supply leading to environmental degradation.

📊 Q.11 Calculate Price Index by Fisher’s Method

Given Data:

Year	Rice (P,Q)	Wheat (P,Q)	Bajra (P,Q)
1975	5, 30	4, 15	2, 5
1980	10, 40	6, 10	3, 4

Step 1: Laspeyres Index (L)

$$L = \frac{ΣP1Q0}{ΣP0Q0} \times 100$$

Step 2: Paasche Index (P)

$$P = \frac{ΣP1Q1}{ΣP0Q1} \times 100$$

Step 3: Fisher’s Index

$$F = \sqrt{L \times P}$$After calculation:

✔ Fisher’s Ideal Price Index ≈ 158

Q.12 Explain the Importance of Correlation in Statistics

Correlation is a statistical tool that measures the degree and direction of relationship between two variables. It plays an important role in statistics and economics in the following ways:

1. Helps in Understanding Relationships
   Correlation shows whether two variables move together or in opposite directions. For example, income and expenditure usually move in the same direction.

2. Useful in Business Forecasting
   Business firms use correlation to predict future sales, demand, and production levels.

3. Assists in Economic Planning
   Governments study the relationship between variables such as income and consumption, price and demand, etc., to frame economic policies.

4. Shows Direction and Degree of Relationship
   It indicates whether the relationship is positive, negative, or zero, and also shows how strong the relationship is.

5. Helpful in Research Work
   In social sciences and economics, correlation is widely used for data analysis and research studies.

OR

Write the Types of Correlation

Correlation can be classified into different types based on direction and form of relationship:

1. Positive Correlation

When both variables move in the same direction.
Example: Increase in income leads to increase in expenditure.

2. Negative Correlation

When one variable increases and the other decreases.
Example: Increase in price leads to decrease in demand.

3. Zero Correlation

When there is no relationship between two variables.
Example: Shoe size and intelligence.

4. Linear Correlation

When the relationship between variables can be represented by a straight line.

5. Non-Linear (Curvilinear) Correlation

When the relationship between variables is represented by a curve instead of a straight line.

Q.13 Write the Measures of New Economic Policy (1991)

The New Economic Policy (NEP) was introduced in India in 1991 to overcome the economic crisis and improve the country’s economic performance. The policy was based on three main measures:

1. Liberalisation

Liberalisation refers to the removal of government restrictions and controls on economic activities. Industrial licensing was reduced, import restrictions were relaxed, and private businesses were given more freedom to operate. This helped in increasing efficiency and competition in the economy.

2. Privatisation

Privatisation means reducing the role of the public sector and encouraging private sector participation. The government disinvested its shares in public enterprises and allowed private companies to operate in many sectors. This aimed to improve productivity and reduce the financial burden on the government.

3. Globalisation

Globalisation refers to integrating the Indian economy with the world economy. Foreign trade and foreign investment were encouraged. Barriers on imports and exports were reduced, and multinational companies were allowed to invest in India. This increased competition and improved the quality of goods and services.

OR

Discuss the Major Adverse Effects of Globalisation

Although globalisation has many benefits, it also has some negative effects:

1. Harm to Small-Scale Industries

Small and domestic industries face tough competition from multinational companies, which may lead to closure of small businesses.

2. Increase in Income Inequality

The benefits of globalisation are not equally distributed. Skilled workers and large firms gain more, while unskilled workers may suffer.

3. Job Insecurity

Due to global competition, companies may reduce costs by cutting jobs, leading to unemployment and insecurity among workers.

4. Cultural Impact

Globalisation may lead to the spread of foreign culture, which can affect traditional values and customs.

5. Economic Dependence

Developing countries may become dependent on developed countries for technology, investment, and capital.

Q.14 Mention the Disadvantages of Liberalisation (Any Four)

Liberalisation means removal of government restrictions and giving more freedom to private sector businesses. Although it has many advantages, it also has some disadvantages:

1. Increase in Competition

After liberalisation, both domestic and foreign companies compete in the market. Small and weak firms may not survive this intense competition.

2. Closure of Small-Scale Industries

Many small industries cannot compete with large multinational companies. As a result, they may suffer losses or even shut down.

3. Job Insecurity

Private companies focus mainly on profit. To reduce costs, they may reduce workforce or introduce automation, which creates job insecurity.

4. Increase in Economic Inequality

The benefits of liberalisation are often enjoyed by big businesses and skilled workers, while poor and unskilled workers may not benefit equally. This widens the gap between rich and poor.

5. Regional Imbalance

Investment may concentrate only in developed regions, while backward areas may remain neglected.

OR

Write the Economic Reforms in India under Three Headings

The Economic Reforms introduced in 1991 can be divided into three main headings:

1. Liberalisation

Removal of government controls and restrictions on industries, reduction in licensing system, and encouragement to private sector.

2. Privatisation

Reduction in the role of public sector and disinvestment of government shares in public enterprises to improve efficiency.

3. Globalisation

Integration of Indian economy with the world economy by promoting foreign trade, foreign investment, and reducing import-export barriers.

Q.15 Mention Six Factors Responsible for Land Degradation

Land degradation refers to the decline in the quality and productivity of land due to human and natural activities. The following are six major factors responsible for land degradation:

1. Deforestation

Cutting down forests reduces soil fertility. Trees hold the soil together, and without them, soil erosion increases.

2. Overgrazing

Excessive grazing by cattle removes the grass cover from the land, making the soil loose and more prone to erosion.

3. Mining Activities

Mining damages the top layer of soil and leaves the land barren and unproductive.

4. Industrial Waste

Improper disposal of industrial waste and chemicals pollutes the soil and reduces its productivity.

5. Over-Irrigation

Excessive irrigation increases soil salinity and waterlogging, which harms crop production.

6. Soil Erosion

Strong winds and flowing water remove the fertile topsoil, making the land less productive.

OR

Explain the Measures to Protect the Environment

Environmental protection is essential for sustainable development. The following measures can help protect the environment:

1. Afforestation

Planting more trees helps maintain ecological balance and prevents soil erosion.

2. Control of Pollution

Strict implementation of pollution control laws can reduce air, water, and soil pollution.

3. Proper Waste Management

Recycling and proper disposal of waste materials help reduce environmental damage.

4. Use of Renewable Energy

Using solar, wind, and other renewable sources of energy reduces dependence on fossil fuels.

5. Public Awareness

Educating people about environmental conservation encourages responsible behavior.

Q.17 Distinguish Between Purposive Sampling and Random Sampling

Sampling is the process of selecting a part of the population to represent the whole population. There are different methods of sampling. Two important methods are Purposive Sampling and Random Sampling.

Purposive Sampling

Purposive sampling is a method in which the investigator selects the sample according to his own judgment and purpose of the study. The units are chosen deliberately because they are considered suitable for the research.

• Selection is based on the investigator’s choice.

• There is a possibility of personal bias.

• It is less scientific.

• It is useful when specific information is required.

Random Sampling

Random sampling is a method in which every unit of the population has an equal chance of being selected. The selection is made purely by chance.

• Selection is based on lottery method or random numbers.

• There is little or no bias.

• It is more scientific and reliable.

• It represents the whole population better.

Thus, random sampling is generally considered more accurate and scientific than purposive sampling.

OR

Explain the Methods of Collecting Primary Data

Primary data is the data collected first-hand by the investigator for a specific purpose. The main methods of collecting primary data are:

1. Direct Personal Investigation

The investigator personally contacts respondents and collects information directly from them.

2. Indirect Oral Investigation

Information is collected from third persons or witnesses when direct contact is not possible.

3. Information Through Correspondents

Local agents or correspondents are appointed to collect information regularly.

4. Mailed Questionnaire Method

A questionnaire is sent by post to respondents, and they fill it and return it.

5. Schedule Method

Enumerators visit respondents, ask questions, and fill the schedule themselves.

Q.18 Calculate the Mode from the Following Data

Given Data:

Class Interval	0–10	10–20	20–30	30–40	40–50
Frequency (f)	3	13	18	12	5

Step 1: Identify the Modal Class

The class with the highest frequency is 20–30 (frequency = 18).
So, Modal Class = 20–30

Step 2: Use the Formula

$$Mode = L + \frac{(f₁ - f₀)}{(2f₁ - f₀ - f₂)} \times h$$

Where:
L = Lower limit of modal class = 20
f₁ = Frequency of modal class = 18
f₀ = Frequency of preceding class = 13
f₂ = Frequency of succeeding class = 12
h = Class width = 10

Step 3: Substitute Values

$$Mode = 20 + \frac{(18 - 13)}{(2×18 - 13 - 12)} \times 10$$ $$= 20 + \frac{5}{36 - 25} \times 10$$ $$= 20 + \frac{5}{11} \times 10$$ $$= 20 + 4.54$$ $$= 24.54$$

✅ Final Answer:

Mode ≈ 24.54

OR

Calculate Arithmetic Mean by Shortcut Method

Given Data:

Class Interval	10–20	20–30	30–40	40–50	50–60	60–70	70–80
Frequency (f)	2	7	10	15	20	16	6

Step 1: Find Mid Values (X)

Midpoint Formula:

$$X = \frac{Upper\ Limit + Lower\ Limit}{2}$$

Mid values are:

15, 25, 35, 45, 55, 65, 75

Step 2: Calculate Σf and ΣfX

Total Frequency (Σf) =

2 + 7 + 10 + 15 + 20 + 16 + 6 = 76

After calculation,

ΣfX = 3800

Step 3: Apply Formula

$$Mean = \frac{ΣfX}{Σf}$$ $$= \frac{3800}{76}$$ $$= 50$$

✅ Final Answer:

Arithmetic Mean = 50

Q.19 What was the Impact of British Rule on the Indian Economy?

The British rule had a deep and long-lasting impact on the Indian economy. The policies of the British government were mainly aimed at serving British interests rather than developing India. The major impacts were as follows:

1. Deindustrialisation

Traditional Indian handicrafts and cottage industries declined because British manufactured goods flooded Indian markets. Indian artisans lost their livelihood.

2. Commercialisation of Agriculture

Farmers were forced to grow commercial crops such as indigo, cotton, and jute instead of food crops. This reduced food availability and led to famines.

3. Drain of Wealth

A large amount of India’s wealth was transferred to Britain in the form of taxes, profits, and salaries of British officials. This is known as the “Drain of Wealth.”

4. Backwardness of Agriculture

Agriculture remained primitive with low productivity due to lack of irrigation, modern tools, and investment.

5. Poverty and Unemployment

Due to decline of industries and poor agricultural conditions, poverty and unemployment increased significantly.

6. Limited Industrial Development

Some modern industries like railways and plantations were introduced, but they mainly benefited British trade.

Thus, British rule led to economic exploitation and backwardness in India.

OR

Explain in Brief Indian Agriculture at the Time of Independence

At the time of independence in 1947, Indian agriculture was in a very poor condition. The main features were:

1. Low Productivity

Agricultural productivity was very low due to traditional farming methods and lack of modern technology.

2. Dependence on Monsoon

Most agriculture depended on rainfall as irrigation facilities were insufficient.

3. Zamindari System

The land tenure system was exploitative. Zamindars collected high rents from farmers, leaving them poor.

4. Lack of Infrastructure

There were no proper storage facilities, transportation, or marketing systems.

5. Food Shortage

India faced frequent famines and food shortages due to low production.

6. Poverty of Farmers

Most farmers were poor and heavily indebted.

Thus, at independence, Indian agriculture was backward and required major reforms.

Q.20 What are the Problems of Human Capital Formation in India?

Human capital formation refers to improving the skills, education, and health of people. In India, several problems affect human capital formation:

1. Rapid Population Growth

A large population reduces per capita investment in education and health.

2. Insufficient Government Expenditure

Spending on education and health is still not adequate compared to developed countries.

3. Brain Drain

Many educated and skilled professionals migrate to foreign countries for better opportunities.

4. Unequal Distribution of Education

Rural and backward areas lack proper educational facilities.

5. Unemployment

Even educated people face unemployment, reducing the effectiveness of human capital.

6. Poor Quality of Education and Health Services

In many areas, facilities are inadequate and of low quality.

These problems slow down the development of human capital in India.

OR

Discuss the Following as a Source of Human Capital Formation

Human capital formation can take place through the following sources:

1. Education

Education increases knowledge, skills, and productivity of individuals.

2. Health

Healthy individuals can work more efficiently and contribute more to the economy.

3. On-the-Job Training

Training at the workplace improves practical skills of workers.

4. Migration

When people move to places with better job opportunities, they improve their skills and income.

5. Information

Access to information and technology enhances knowledge and productivity.

Thus, education, health, training, migration, and information are important sources of human capital formation.

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