NEB Class 11 · Past paper
The complete NEB Class 11 2076 exam paper for Economics, all 24 questions with solved model answers.
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Explain Marshall's definition of economics. What are its weaknesses?
Marshall's definition: In his book Principles of Economics (1890), Alfred Marshall defined: "Economics is a study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being."
Main features (welfare definition):
Weaknesses / criticisms:
Thus, although Marshall raised economics from a "science of wealth" to a "science of welfare", his definition was criticised as narrow and vague.
What is allocation of resources? (Or: Explain the law of supply.)
Allocation of resources means the distribution of the economy's scarce means (land, labour, capital, etc.) among different competing uses to produce various goods and services. Because resources are limited but wants are unlimited, socie...
Define production possibility curve.
The production possibility curve (PPC) is a curve showing the different combinations of two goods that an economy can produce using its available resources and technology fully and efficiently. It is also called the transformation curve ...
What is shift in demand curve?
A shift in the demand curve occurs when the quantity demanded changes due to factors other than the price of the good itself, such as change in income, tastes, prices of related goods or population. A rightward shift means increase in de...
What does Gross Domestic Product (GDP) indicate?
Gross Domestic Product (GDP) is the total money value of all final goods and services produced within the domestic territory of a country during one year, regardless of whether the producers are nationals or foreigners. It indicates the size, productive performance and overall health of the domestic economy; a rising GDP shows economic growth.
Define complementary goods.
Complementary goods are pairs of goods that are used together to satisfy a want, such as car and petrol, or pen and ink. For complements a rise in the price of one good reduces the demand for the other, so their price and demand move in opposite directions (negative cross demand).
What is market economy?
A market economy (capitalist/free economy) is an economic system in which the basic economic decisions of what, how and for whom to produce are taken by private individuals and firms through the free operation of the price mechanism (demand and supply), with minimum government interference. It is based on private property, profit motive and freedom of enterprise and choice.
What are the characteristics of underdeveloped countries?
An underdeveloped country has a low level of per capita income and living standard. Main characteristics:
Nepal shares most of these characteristics.
Describe the causes of poverty in Nepal.
Causes of poverty in Nepal:
These factors keep a large part of the Nepalese population below the poverty line.
Explain the indicators of economic development.
Economic development is a sustained rise in real per capita income with improved living standards. Its indicators: - Per capita real income (GNP/GDP per head). - Human Development Index (HDI): health, education and income. - Poverty and ...
Describe the following table.
| Areas | Population Density |
|---|---|
| Rural | 153 |
| Urban | 1380 |
| Himal | 34 |
| Hills | 186 |
| Terai | 392 |
| Nepal | 180 |
The table shows the population density (persons per sq. km.) of Nepal by area and region. - Urban areas have by far the highest density (1380), much above the national average, because of concentration of jobs, services and facilities in...
Explain the process of plan formulation.
Plan formulation is the process of preparing a periodic development plan. Main steps:
In Nepal the National Planning Commission is the apex agency for plan formulation.
Describe the importance of foreign employment in Nepalese economy.
Foreign employment (Nepalese working abroad) is very important for the economy:
Despite some social costs (loss of active manpower), foreign employment currently plays a vital role in sustaining Nepal's economy.
Describe the importance of mineral resources.
Mineral resources (limestone, iron, copper, mica, magnesite, coal, precious stones, etc.) are important for the economy because they:
For Nepal, proper exploration and use of minerals could boost industry and reduce imports, though they remain underutilised due to lack of capital and technology.
What are the problems of Nepalese agriculture?
Problems of Nepalese agriculture:
These problems keep Nepalese agriculture backward and require modernisation, irrigation and commercialisation.
Describe the importance of cottage industry in Nepal.
Cottage (small/traditional) industries use local raw materials, simple tools and family labour. Their importance for Nepal: - Employment generation at low capital cost, especially in rural areas. - Use of local raw materials and skills (...
Give suggestions for communication development in Nepal.
Suggestions to develop communication (post, telephone, internet, media) in Nepal:
These measures would improve access to information, trade and services throughout the country.
What are the problems of natural resource management in Nepal?
Problems of natural resource management in Nepal:
Because of these problems, Nepal's rich natural resources remain largely underutilised.
Define secondary data. Describe about its sources.
Secondary data are data that have already been collected, processed and published by someone else for some other purpose, and are used by the investigator second-hand for the present study. They are cheaper and quicker to obtain than primary data but must be used carefully after checking their reliability, suitability and adequacy.
Sources of secondary data are of two types:
(a) Published sources:
(b) Unpublished sources:
Before using secondary data, the investigator should ensure they are reliable, suitable for the purpose and adequate for the study.
Find median from the following data.
| Wage | 5-15 | 15-25 | 25-35 | 35-45 | 45-55 | 55-65 | 65-75 |
|---|---|---|---|---|---|---|---|
| No. of labour | 4 | 5 | 7 | 10 | 4 | 3 | 4 |
Given: A continuous frequency distribution. First find cumulative frequencies (c.f.). Class $f$ c.f. --------- 5-15 4 4 15-25 5 9 25-35 7 16 35-45 10 26 45-55 4 30 55-65 3 33 65-75 4 37 $$ \begin{aligned} N &= 37 \ \qquad \frac{N}{2} &=...
Construct price index number from the following table by using Laspeyre's method.
| Commodity | 2012 Price | 2012 Quantity | 2015 Price | 2015 Quantity |
|---|---|---|---|---|
| A | 10 | 80 | 15 | 100 |
| B | 4 | 150 | 4 | 200 |
| C | 6 | 120 | 10 | 130 |
| D | 20 | 70 | 25 | 40 |
Given: Base year (2012) price $p0$, quantity $q0$; current year (2015) price $p1$. Laspeyre's price index uses base-year quantities as weights: $$P{01} = \frac{\sum p1 q0}{\sum p0 q0} \times 100$$ Computation table: Commodity $p0$ $q0$
Find the value using Logarithm Table.
$$\frac{52.23 \times 15.4}{69.35 \times 2.76}$$
Given: $x = \dfrac{52.23 \times 15.4}{69.35 \times 2.76}$
Take logarithm on both sides: $$\log x = (\log 52.23 + \log 15.4) - (\log 69.35 + \log 2.76)$$
Reading values from the log table: $$ \begin{aligned} \log 52.23 &= 1.7180\ \log 15.4 &= 1.1875\ \log 69.35 &= 1.8412\ \log 2.76 &= 0.4409 \ \log x &= (1.7180 + 1.1875) - (1.8412 + 0.4409) \ \log x &= 2.9055 - 2.2821 \ &= 0.6234 \end{aligned} $$
Taking antilog: $$ \begin{aligned} x &= \text{antilog}(0.6234) \ &= 4.20 \end{aligned} $$
Answer: The value is approximately 4.20.
Find the slope and Y-intercept of the line 3x + y - 9 = 0.
Given: The line $3x + y - 9 = 0$. Reduce it to the slope-intercept form $y = mx + c$, where $m$ = slope and $c$ = y-intercept: $$ \begin{aligned} 3x + y - 9 &= 0\ y &= -3x + 9 \end{aligned} $$ Comparing with $y = mx + c$: $$ \begin{alig...
Solve the following equations using Matrix method.
$$ \begin{aligned} x + 3y &= 13 \ x + y &= 7 \end{aligned} $$
Given: In matrix form $AX = B$: $$A = \begin{bmatrix} 1 & 3 \ 1 & 1 \end{bmatrix}, \quad B = \begin{bmatrix} 13 \ 7 \end{bmatrix} $$ Determinant: $$ \begin{aligned} A &= (1)(1) - (3)(1) \ &= 1 - 3 \ &= -2 \end{aligned} $$ Since
Given: A continuous frequency distribution. First find cumulative frequencies (c.f.). Class c.f. --------- 5-15 4 4 15-25 5 9 25-35 7 16 35-45 10 26 45-55 4 30 55-65 3 33 65-75 4 37 $$ \begin{aligned} N &= 37 \ \qquad \frac{N}{2} &=...
Given: Base year (2012) price , quantity ; current year (2015) price . Laspeyre's price index uses base-year quantities as weights: Computation table: Commodity
Find the value using Logarithm Table.
Given:
Take logarithm on both sides:
Reading values from the log table:
Taking antilog:
Answer: The value is approximately 4.20.
Given: The line . Reduce it to the slope-intercept form , where = slope and = y-intercept: Comparing with : $$ \begin{alig...
Solve the following equations using Matrix method.
Given: In matrix form : Determinant: Since