MCQs for CBSE Class 11 Economics

📘 Part A: Statistics for Economics (30 MCQs)

Chapter 1: Introduction (3 Qs)

1. Which of the following best defines statistics in economics?
   a) Collection and analysis of data
   b) Laws of nature
   c) Recording of festivals
   d) Only presentation of graphs
   Answer: a — Statistics in economics deals with collection, analysis, and interpretation of data.
2. Which is not a limitation of statistics?
   a) Cannot study qualitative phenomena directly
   b) Can mislead without context
   c) Can only be applied to aggregates
   d) Helps in formulating policies
   Answer: d — This is a strength, not a limitation.
3. Which of these requires statistics most?
   a) Decision-making in economics
   b) Sports commentary
   c) Cooking recipes
   d) Religious texts
   Answer: a — Policy decisions rely heavily on statistical data.

Chapter 2: Collection of Data (3 Qs)

4. Census method refers to:
   a) Study of the whole population
   b) Study of a sample
   c) Study of trends only
   d) Study of graphs
   Answer: a — Census = complete enumeration.
5. Which is a primary source of data?
   a) Government reports
   b) Survey conducted by researcher
   c) UN publications
   d) Journals
   Answer: b — Primary data is collected directly by the investigator.
6. Which sampling method ensures equal chance for all?
   a) Stratified sampling
   b) Random sampling
   c) Quota sampling
   d) Judgment sampling
   Answer: b — Random sampling provides equal opportunity.

Chapter 3: Organisation of Data (3 Qs)

7. Raw data arranged in classes is called:
   a) Tabulation
   b) Classification
   c) Coding
   d) Hypothesis
   Answer: b — Classification organises raw data into classes.
8. Inclusive method of classification includes:
   a) Both lower and upper class limits
   b) Only lower limit
   c) Only upper limit
   d) No limits
   Answer: a — Inclusive includes both limits in the class interval.
9. Continuous series is used when:
   a) Values are isolated
   b) Data is qualitative
   c) Data can take any value within a range
   d) Data is not numerical
   Answer: c — Continuous data can assume any value in a range.

Chapter 4: Presentation of Data (3 Qs)

10. Which is not a diagrammatic method?
    a) Bar diagram
    b) Pie chart
    c) Histogram
    d) Index number
    Answer: d — Index numbers are statistical tools, not diagrams.
11. Ogives are used to find:
    a) Median
    b) Mode
    c) Mean
    d) Range
    Answer: a — Ogives are cumulative frequency curves used to locate median.
12. Pie diagrams represent:
    a) Absolute values
    b) Percentage share of components
    c) Equations
    d) Index numbers
    Answer: b — Pie charts show percentage composition.

Chapter 5: Measures of Central Tendency (4 Qs)

13. The arithmetic mean is influenced most by:
    a) Extreme values
    b) Middle values
    c) Mode
    d) Median
    Answer: a — Mean is affected by outliers.
14. Median is preferred when:
    a) Data has extreme values
    b) Data is uniform
    c) No ranking possible
    d) No scores available
    Answer: a — Median is resistant to extremes.
15. Which is the positional average?
    a) Mean
    b) Median
    c) Mode
    d) All of these
    Answer: b — Median depends on position, not magnitude.
16. Which measure is most commonly used in economic data?
    a) Mode
    b) Mean
    c) Median
    d) Range
    Answer: b — Mean is widely used for averages.

Chapter 6: Measures of Dispersion (4 Qs)

17. Simplest measure of dispersion is:
    a) Range
    b) Mean deviation
    c) Variance
    d) Standard deviation
    Answer: a — Range = max – min.
18. Coefficient of variation = ?
    a) (σ / Mean) × 100
    b) (σ × Mean) × 100
    c) σ² / Mean
    d) Mean – σ
    Answer: a — CV = σ ÷ Mean × 100.
19. Which measure is most reliable?
    a) Range
    b) SD
    c) Mean deviation
    d) Quartile deviation
    Answer: b — Standard deviation is considered best.
20. If range = 40 and minimum value = 10, maximum = ?
    a) 40
    b) 30
    c) 50
    d) 60
    Answer: c — Max = Min + Range = 10 + 40 = 50.

Chapter 7: Correlation (3 Qs)

21. If two variables move in the same direction, correlation is:
    a) Negative
    b) Positive
    c) Zero
    d) None
    Answer: b — Same direction = positive correlation.
22. Correlation coefficient ranges between:
    a) –1 to +1
    b) 0 to 1
    c) 0 to ∞
    d) –∞ to +∞
    Answer: a — Karl Pearson’s r ∈ [–1, +1].
23. Spearman’s rank correlation is useful for:
    a) Quantitative data only
    b) Qualitative rankings
    c) Index numbers
    d) Means
    Answer: b — Rank correlation is applied to ranked/qualitative data.

Chapter 8: Index Numbers (4 Qs)

24. Base year should be:
    a) Abnormal year
    b) Normal year
    c) Extreme year
    d) None
    Answer: b — Base year must be a normal year.
25. CPI is used to measure:
    a) Inflation
    b) Deflation only
    c) Employment
    d) Literacy
    Answer: a — CPI indicates inflation.
26. Which is not a use of index numbers?
    a) Measuring inflation
    b) Policy formulation
    c) Weather forecasting
    d) Comparing purchasing power
    Answer: c — Index numbers are not for weather.
27. Index numbers suffer from:
    a) Choice of base year
    b) Selection of commodities
    c) Choice of formula
    d) All of these
    Answer: d — All are limitations.

Chapter 9: Use of Statistical Tools (3 Qs)

28. Average income of population is best studied with:
    a) Median
    b) Mean
    c) Mode
    d) Range
    Answer: b — Mean gives true average.
29. Index numbers help compare:
    a) Different commodities over time
    b) Weather
    c) Textbooks
    d) Literature
    Answer: a — Index = relative change over time.
30. Correlation is useful to:
    a) Study cause-effect
    b) Predict relationships between variables
    c) Eliminate variables
    d) Find range
    Answer: b — Correlation studies the relationship between variables.

📗 Part B: Indian Economic Development (30 MCQs)

Chapter 1: Development Experience & Reforms (5 Qs)

31. First Five-Year Plan focused on:
    a) Heavy industries
    b) Agriculture and irrigation
    c) IT sector
    d) Transport only
    Answer: b — First plan stressed agriculture.
32. Mixed economy means:
    a) Only public sector
    b) Only private sector
    c) Both sectors coexist
    d) No sector exists
    Answer: c — India adopted a mixed economy.
33. LPG reforms were introduced in:
    a) 1980
    b) 1991
    c) 1975
    d) 2000
    Answer: b — Reforms started in 1991.
34. Which sector gained most after liberalisation?
    a) Agriculture
    b) Services
    c) Heavy industries
    d) Handicrafts
    Answer: b — Services expanded rapidly.
35. Licence Raj refers to:
    a) Liberalisation
    b) Strict industrial licensing system before 1991
    c) Open market policy
    d) Free trade
    Answer: b — Licence Raj restricted industries.

Chapter 2a: Poverty (4 Qs)

36. Poverty line in India is based on:
    a) Income only
    b) Expenditure on food and essentials
    c) Assets
    d) Property
    Answer: b — Defined by consumption expenditure.
37. Poverty alleviation programme launched in 2005:
    a) IRDP
    b) MGNREGA
    c) PMAY
    d) NRHM
    Answer: b — MGNREGA ensures rural employment.
38. Relative poverty compares:
    a) Individuals in same society
    b) Different countries
    c) GDP growth
    d) Literacy rates
    Answer: a — It measures inequality within a society.
39. Which is not a cause of poverty?
    a) Low productivity
    b) High education
    c) Unequal distribution
    d) Unemployment
    Answer: b — Education reduces poverty.

Chapter 2b: Human Capital Formation (4 Qs)

40. Human capital refers to:
    a) Physical assets
    b) Education and health
    c) Land
    d) Machines
    Answer: b — Human capital = knowledge & health.
41. Literacy rate in India is an indicator of:
    a) Poverty
    b) Human development
    c) Agriculture
    d) Industry
    Answer: b — Literacy reflects human development.
42. Which scheme provides mid-day meals?
    a) PMGSY
    b) Mid-Day Meal Scheme
    c) NRHM
    d) IRDP
    Answer: b — MDM scheme improves nutrition and attendance.
43. Investment in human capital leads to:
    a) Lower productivity
    b) Higher productivity and growth
    c) Less employment
    d) None
    Answer: b — Education and health improve output.

Chapter 2c: Rural Development (4 Qs)

44. SHGs are associated with:
    a) Big industries
    b) Rural credit and microfinance
    c) Stock exchanges
    d) Export houses
    Answer: b — SHGs promote microfinance.
45. Diversification in agriculture means:
    a) Focus on single crop
    b) Shift to allied activities like dairy, poultry, fisheries
    c) Ignoring farming
    d) Industrialisation
    Answer: b — Diversification includes allied sectors.
46. Rural credit is important because:
    a) Farmers need capital for inputs
    b) Farmers avoid education
    c) To increase unemployment
    d) For exports only
    Answer: a — Credit supports farming.
47. Which organisation provides cooperative credit?
    a) NABARD
    b) RBI
    c) SEBI
    d) IRDAI
    Answer: a — NABARD promotes rural credit institutions.

Chapter 2d: Employment (4 Qs)

48. Disguised unemployment is mostly found in:
    a) Agriculture
    b) IT sector
    c) Industries
    d) Banking
    Answer: a — Excess labour in farming.
49. Informal sector means:
    a) Organised jobs
    b) Jobs without social security and laws
    c) Government jobs
    d) Big industries
    Answer: b — Informal = unregulated jobs.
50. Which is not a type of unemployment?
    a) Seasonal
    b) Educated
    c) Structural
    d) Sustainable
    Answer: d — Not a type.
51. Employment growth since 1991 has been highest in:
    a) Agriculture
    b) Informal services
    c) Manufacturing
    d) Defence
    Answer: b — Informal services expanded most.

Chapter 2e: Infrastructure (4 Qs)

52. Infrastructure includes:
    a) Schools and hospitals
    b) Power, transport
    c) Communication systems
    d) All of these
    Answer: d — All are infrastructure.
53. Which is social infrastructure?
    a) Roads
    b) Schools and health facilities
    c) Railways
    d) Power plants
    Answer: b — Social = education & health.
54. Which is a renewable energy source?
    a) Coal
    b) Petroleum
    c) Solar
    d) Gas
    Answer: c — Solar is renewable.
55. Primary health centres are meant for:
    a) Basic healthcare in rural areas
    b) Research
    c) Urban elite
    d) Exports
    Answer: a — PHCs deliver rural healthcare.

Chapter 3: India & Neighbours (5 Qs)

56. India and China’s growth difference lies in:
    a) Agriculture
    b) Manufacturing sector contribution
    c) Services
    d) Forestry
    Answer: b — China focused on manufacturing.
57. Pakistan’s economy is more dependent on:
    a) Heavy industries
    b) Agriculture
    c) IT
    d) Tourism
    Answer: b — Pakistan relies on agriculture.
58. India’s HDI rank compared to China is generally:
    a) Higher
    b) Lower
    c) Same
    d) None
    Answer: b — China ranks higher.
59. Life expectancy is highest in:
    a) India
    b) Pakistan
    c) China
    d) Equal
    Answer: c — China scores better.
60. Literacy rate among neighbours is lowest in:
    a) India
    b) Pakistan
    c) China
    d) None
    Answer: b — Pakistan has lower literacy.