CG Board Class 11 Economics Sample Paper with Answers 2025-26 (Full Solution)

 

📘 MODEL QUESTION PAPER (SOLVED)

ECONOMICS (C.G.) – Class XI

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✅ Q.1 (A) Choose the correct answer:

1. He is known as the father of statistics:
   (a) Bowley
   (b) Gottfried Achenwall
   (c) Bodington
   (d) None of these
   Ans: (b) Gottfried Achenwall
2. The most popular measurement of central tendency is:
   (a) Median
   (b) Multiple
   (c) Mean
   (d) Weighted mean
   Ans: (c) Mean
3. For which crops the Green Revolution was very successful:
   (a) Wheat and potato
   (b) Wheat and rice
   (c) Oil seeds and rice
   (d) Pulses and maize
   Ans: (b) Wheat and rice
4. As a regional contribution in GDP, economy of India and Pakistan depends upon:
   (a) Primary Sector
   (b) Secondary Sector
   (c) Tertiary Sector
   (d) None of these
   Ans: (c) Tertiary Sector
5. Great Leap Forward Campaign of China was concentrated on:
   (a) Large scale industrialisation
   (b) New agricultural policy
   (c) Privatisation
   (d) Economic reforms
   Ans: (a) Large scale industrialisation

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✅ Q.1 (B) Very Short Answer Type Questions:

1. After how many years census is done in India?
   Ans: Census is conducted every 10 years in India.
2. When restrictions are reduced on economy by government, what is it called?
   Ans: It is called Liberalisation.
3. What are the main two sources of human capital in any country?
   Ans:
   (i) Investment in education
   (ii) Investment in health
4. Write two indicators of Human Development Index (HDI).
   Ans:
   (i) Per Capita Income
   (ii) Life Expectancy
5. When did India and Pakistan get independence?
   Ans: In 1947.

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✅ Q.2 Write any two defects of questionnaire to be filled by informants:

Ans:

• Respondents may give wrong or biased answers.
• Illiterate people cannot fill the questionnaire properly.

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✅ Q.3 Why is multiple bar diagram prepared?

Ans:
A multiple bar diagram is prepared to compare two or more sets of data simultaneously. It helps in easy comparison between different variables.

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✅ Q.4 What is the difference between price index and quantity index?

Ans:

Basis	Price Index	Quantity Index
Meaning	Measures change in prices	Measures change in quantity
Purpose	Shows inflation	Shows production level

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✅ Q.5 Explain the utility of index numbers:

Ans:

• Helps in measuring inflation
• Useful for comparison of economic data
• Helps government in policy making
• Indicates changes in standard of living

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✅ Q.6 Why did India opt for planning?

Ans:
India opted for planning to achieve economic development, reduce poverty, generate employment, and ensure proper utilization of resources.

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✅ Q.7 What are your reasons for studying Economics?

Ans:

• To understand economic problems
• To make better financial decisions
• To understand resource allocation

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✅ Q.8 When is rank correlation more precise than simple correlation coefficient?

Ans:
Rank correlation is more precise when data is given in ranks or qualitative form instead of exact numerical values.

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✅ Q.9 "Index numbers are economic barometers." Explain.

Ans:
Index numbers indicate the changes in economic variables like prices and production. They help in understanding economic conditions, so they are called economic barometers.

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✅ Q.10 What type of unemployment is found in Indian economy?

Ans:

• Disguised unemployment
• Seasonal unemployment
• Educated unemployment

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✅ Q.11 What are the points to be kept in mind while constructing index number?

Ans:

• Selection of appropriate base year
• Selection of suitable commodities
• Reliable data collection
• Proper method selection

OR

Importance of Consumer Price Index (CPI):

• Measures cost of living
• Helps in wage determination
• Indicates inflation

Q.12 (A) Full Solution

Question:

In a drama competition two judges had given the following marks to 10 participants. Calculate rank correlation coefficient using Spearman’s method:

X	15	17	14	13	11	12	16	18	10	9
Y	15	12	4	6	7	9	3	10	2	5

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✏️ Solution:

Step 1: Assign Ranks (Highest = Rank 1)

X	Rank X	Y	Rank Y	d = Rx - Ry	d²
15	4	15	1	3	9
17	2	12	2	0	0
14	5	4	8	-3	9
13	6	6	6	0	0
11	8	7	5	3	9
12	7	9	4	3	9
16	3	3	9	-6	36
18	1	10	3	-2	4
10	9	2	10	-1	1
9	10	5	7	3	9

👉 Σd² = 86
👉 n = 10

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Step 2: Formula

$R = 1 - \frac{6 \sum d^2}{n(n^2 - 1)}$

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Step 3: Calculation

$$R = 1 - \frac{6 \times 86}{10(10^2 - 1)}$$ $$R = 1 - \frac{516}{10 \times 99}$$ $$R = 1 - \frac{516}{990}$$ $$R = 1 - 0.521$$ $$R = 0.48 \; (approx)$$

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✅ Final Answer:

Spearman’s Rank Correlation Coefficient (R) = 0.48

👉 Explanation (short):
यह positive moderate correlation दिखाता है, यानी दोनों judges के marks में कुछ हद तक समानता है।

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✅ Q.12 (B) OR Question (Full Solution)

Question:

Calculate coefficient of correlation by Spearman's rank difference method:

Economics	8	36	98	25	75	82	92	62	65	35
Statistics	84	51	91	60	68	62	86	58	35	49

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✏️ Solution:

Step 1: Assign Ranks (Highest = Rank 1)

Economics Ranking:

98(1), 92(2), 82(3), 75(4), 65(5), 62(6), 36(7), 35(8), 25(9), 8(10)

Statistics Ranking:

91(1), 86(2), 84(3), 68(4), 62(5), 60(6), 58(7), 51(8), 49(9), 35(10)

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Step 2: Table

Eco	Rank X	Stat	Rank Y	d	d²
8	10	84	3	7	49
36	7	51	8	-1	1
98	1	91	1	0	0
25	9	60	6	3	9
75	4	68	4	0	0
82	3	62	5	-2	4
92	2	86	2	0	0
62	6	58	7	-1	1
65	5	35	10	-5	25
35	8	49	9	-1	1

👉 Σd² = 90
👉 n = 10

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Step 3: Formula

$R = 1 - \frac{6 \sum d^2}{n(n^2 - 1)}$

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Step 4: Calculation

$$R = 1 - \frac{6 \times 90}{10(100 - 1)}$$ $$R = 1 - \frac{540}{990}$$ $$R = 1 - 0.545$$ $$R = 0.455 \; (approx)$$

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✅ Final Answer:

R ≈ 0.46

✅ Q.13 Describe the Industrial Policy of 1991

Ans:

Industrial Policy 1991 was introduced to reform the Indian economy and make it more efficient and competitive.

🔹 Main Features:

1. Abolition of License System:
   Most industries were freed from licensing, reducing government control.
2. Promotion of Private Sector:
   Private companies were encouraged to expand and invest.
3. Encouragement of Foreign Investment:
   Foreign Direct Investment (FDI) was allowed in many sectors.
4. Reduction in Public Sector Role:
   Many industries reserved for public sector were opened to private sector.
5. Globalisation:
   India opened its economy to global trade and competition.

👉 Conclusion:
This policy modernized the Indian economy and increased growth.

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OR

Need of Liberalisation

🔹 Reasons:

1. To increase economic growth:
   Removing restrictions helped industries grow faster.
2. To improve efficiency:
   Competition forced firms to improve quality and reduce cost.
3. To encourage competition:
   Private and foreign players increased competition.
4. To reduce government control:
   Economy became more market-oriented.

👉 Conclusion:
Liberalisation made the economy more dynamic and competitive.

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✅ Q.14 Evaluate Economic Reforms in India

Ans:

Economic reforms in India are evaluated under three main headings:

🔹 1. Liberalisation:

• Removal of restrictions and controls
• Freedom to industries
• Reduced government interference

🔹 2. Privatisation:

• Transfer of public sector enterprises to private sector
• Increased efficiency and productivity

🔹 3. Globalisation:

• Integration with world economy
• Increase in imports and exports

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🔹 Achievements:

1. Increase in GDP growth
2. Rise in foreign investment (FDI)
3. Technological development
4. Better quality goods and services

👉 Conclusion:
Economic reforms improved India's economic performance.

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✅ Q.15 Steps for Sustainable Development in India

Ans:

🔹 Main Steps:

1. Use of Renewable Resources:
   Solar, wind energy should be used.
2. Conservation of Environment:
   Forests, water, and wildlife must be protected.
3. Control of Pollution:
   Industries should follow pollution control measures.
4. Population Control:
   Reducing population pressure on resources.
5. Awareness and Education:
   People should be aware of environmental protection.

👉 Conclusion:
Sustainable development ensures growth without harming future generations.

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OR

Causes of Environmental Crisis

🔹 Main Causes:

1. Industrialisation:
   Factories increase pollution.
2. Deforestation:
   Cutting trees disturbs ecological balance.
3. Pollution:
   Air, water, and soil pollution harm environment.
4. Population Growth:
   More people = more pressure on resources.
5. Overuse of Resources:
   Natural resources are being overexploited.

👉 Conclusion:
Environmental crisis is caused by human activities.

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✅ Q.16 Reasons for Poverty in Pakistan

Ans:

🔹 Main Reasons:

1. Political Instability:
   Frequent changes in government affect policies.
2. Low Economic Growth:
   Slow development leads to poverty.
3. High Population Growth:
   More population reduces per capita income.
4. Unemployment:
   Lack of job opportunities increases poverty.

👉 Conclusion:
These factors slowed growth and increased poverty.

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OR

Development Policies of India

🔹 Main Policies:

1. Five Year Plans:
   Planned development for economic growth.
2. Mixed Economy System:
   Both public and private sectors operate.
3. Industrial Development:
   Focus on industries and infrastructure.
4. Agricultural Development:
   Green Revolution improved production.

👉 Conclusion:
These policies helped India achieve steady development.

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✅ Q.17 Primary Data vs Secondary Data

Ans:

Basis	Primary Data	Secondary Data
Meaning	Collected first time	Already collected
Nature	Original	Processed
Cost	Expensive	Cheap
Example	Survey, interview	Census, reports

👉 Conclusion:
Primary data is more reliable but costly, while secondary data is easy to use.

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OR

Qualities of a Good Questionnaire

🔹 Main Qualities:

1. Simple and Clear:
   Questions should be easy to understand.
2. Relevant Questions:
   Only useful questions should be included.
3. Logical Sequence:
   Questions should be arranged properly.
4. Easy to Answer:
   Should not confuse the respondent.
5. Short and Precise:
   Avoid lengthy questions.

👉 Conclusion:
A good questionnaire ensures accurate data collection.

✅ Q.18 (A) Median (Solved)

Given Data:

Class	Frequency
0–10	12
10–20	18
20–30	27
30–40	20
40–50	17
50–60	6

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Step 1: Total Frequency

N = 12 + 18 + 27 + 20 + 17 + 6 = 100
👉 N/2 = 50

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Step 2: Cumulative Frequency (cf)

Class	f	cf
0–10	12	12
10–20	18	30
20–30	27	57 👈
30–40	20	77
40–50	17	94
50–60	6	100

👉 Median class = 20–30

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Step 3: Formula

$$Median = L + \left(\frac{N/2 - cf}{f}\right) \times h$$

Where:
L = 20
cf = 30
f = 27
h = 10

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Step 4: Calculation

$$Median = 20 + \left(\frac{50 - 30}{27}\right) \times 10$$ $$Median = 20 + \frac{20}{27} \times 10$$ $$Median = 20 + 7.4$$ $$Median ≈ 27.4$$

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✅ Final Answer:

Median ≈ 27.4

👉 Explanation:
इसका मतलब है कि 50% shops का profit 27.4 से कम है।

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✅ Q.18 (B) Mean (Shortcut Method)

Given Data:

Class	f
0–10	10
10–20	15
20–30	20
30–40	25
40–50	18
50–60	12

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Step 1: Mid Values (x)

Class	f	x	fx
0–10	10	5	50
10–20	15	15	225
20–30	20	25	500
30–40	25	35	875
40–50	18	45	810
50–60	12	55	660

👉 Σf = 100
👉 Σfx = 3120

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Step 2: Formula

$$\bar{X} = \frac{\Sigma fx}{\Sigma f}$$

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Step 3: Calculation

$$\bar{X} = \frac{3120}{100} = 31.2$$

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✅ Final Answer:

Mean = 31.2

👉 Explanation:
Average wage ≈ ₹31.2

✅ Q.19 Characteristics of Indian Economy at Independence

Answer:

1. Low Per Capita Income:
   The average income of people was very low, leading to a poor standard of living.
2. High Poverty:
   A large section of the population was living below the poverty line.
3. Agriculture Dependent Economy:
   About 70% of the population depended on agriculture, which was backward and unproductive.
4. Poor Industrial Development:
   Industrial growth was very low, and heavy industries were almost absent.
5. High Unemployment:
   There were limited job opportunities, resulting in widespread unemployment.

👉 Conclusion:
At the time of independence, the Indian economy was weak and underdeveloped.

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OR

✅ Ruin of Handicraft Industries

Answer:

1. Machine-made Imports:
   Cheap machine-made goods from Britain replaced Indian handmade products.
2. Heavy Taxes on Indian Goods:
   High taxes made Indian goods expensive and less competitive.
3. Loss of Market:
   Demand for Indian handicrafts declined in both domestic and foreign markets.
4. Unemployment of Artisans:
   Many artisans lost their jobs and faced economic hardship.

👉 Conclusion:
British policies led to the destruction of traditional Indian handicraft industries.

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✅ Q.20 Factors Contributing to Human Capital Formation

Answer:

1. Education:
   Education increases knowledge and skills, improving productivity.
2. Health:
   Healthy individuals can work more efficiently and contribute better.
3. Training:
   Training enhances skills and efficiency in specific jobs.
4. Migration:
   Movement of people to better opportunities increases income and development.
5. Information & Technology:
   Access to modern technology improves efficiency and output.

👉 Conclusion:
These factors play a key role in the economic development of a country.

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OR

✅ Education as an Important Input for Development

Answer:

1. Improves Skills:
   Education enhances the abilities and knowledge of individuals.
2. Increases Productivity:
   Educated workers perform tasks more efficiently.
3. Promotes Economic Growth:
   Education leads to innovation and development.
4. Better Employment Opportunities:
   It helps people get better jobs and higher income.
5. Social Development:
   Education creates awareness and improves society.

👉 Conclusion:
Education is the foundation of both economic and social development.