Economic Applications Specimen Paper 2024-2025 (English Medium) ICSE Class 10 Question Paper Solution

Assertion (A): The recent war in Israel will impact key imports to India, which include rough cut and polished diamonds.

Reasoning (R): Diamonds are luxury goods having relatively elastic demand.

A is true but R is false.

A is false but R is true.

Both A & R are true and R explains A.

Both A & R are true but R does not explain A.

In which exception to the law of demand does the consumer equate price and quality.

Bandwagon Effect

Veblen Effect

Giffen Effect

Conspicous consumption

Which of the following pairs of goods are most likely substitutes?

Cucumber and salad dressing

Cola and lemon lime soda

Butter and gasoline

Compact discs and disc players

Which of the following is NOT a land? (Amenable to human control)

Rain water

Gold mine

Crude oil in pipelines

Forest

Coal in mines

Which of the following is not a correct match?

Land - free gift of nature

Entrepreneur - employs other factors

Capital - results savings

Labour - passive factor of production

Selling costs are absent in perfect competition market.

True

False

Which function of RBI is indicated by the above image?

Credit control

Lender of last resort

Monopoly of note issue

Banker's bank

Match the following:

1(S) 2(R) 3(Q) 4(P)

1(S) 2(P) 3(Q) 4(R)

1(Q) 2(S) 3(R) 4(P)

1(P) 2(R) 3(S) 4(Q)

Which of the following is a selective/qualitative method of credit control.

Bank Rate

Cash Credit Ratio

Open Market Operations

Moral suasion

Identify what type of capital is it?

Social Capital

Revolving Capital

Money Capital

Real Capital

Identify the value of elasticity of supply for the supply curve OS and S₁S₂.

OS > 1, S₁S₂ < 1

OS < 1, S₁S₂ > 1

OS < 1, S₁S₂ = 1

OS = 1, S₁S₂ > 1

Firm A hires the services of Rohit Sharma to act as the Brand ambassador for its products X. Identify the nature of market for commodity X.

Monopsony market

Monopoly market

Monopolistic competition

Perfect competition

Identify the most efficient student:

P

Q

S

R

Assertion (A): Goods and Services Tax (GST) is an indirect tax.

Reason (R): The impact and the incidence of tax are on two different person.

A is true but R is false.

A is false but R is true.

Both A & R are true R explains A.

Both A & R are true but R does not explain A.

If demand increases by 50% due to an increase in price by 75%, calculate the price elasticity of demand.

0.25

0.67

1.50

0.75

The picture above shows which factor of production.

Land

Labour

Capital

Entrepreneur

Observe the relationship of the first pair of words and complete the second pair.

During inflation the debtors gain and ______ lose.

Creditors 

Producers

Businessman

Shopkeeper

Assertion (A): The rate of tax increases to a certain limit and then becomes constant.

Reason (R): This system is a combination of progressive tax and regressive tax.

A is true but R is false.

A is false but R is true.

Both A & R are true R explains A.

Both A & R are true but R does not explain A.

If commodity X and Y are substitutes, increase in price of X will affect demand of Y how?

Increase

Decrease

Remain same

Uncertain

The process of adding to the stock of capital over time is capital formation.

True

False

Calculate elasticity of demand on the basis of the following data.

1. Calculate the elasticity of demand.
2. Is the demand elastic or inelastic?

Money performs both primary and secondary functions.

Identify a specific function of money which is related to future payments. State a reason.

State the differences between a loan and an overdraft.

The income tax slab rates are given below. Explain the types of taxation represented in slab 3 and slab 4.

1. upto Rs. 1,60,000 = No tax.
2. Rs. 1,60,001 to Rs. 5,00,000 = 10%
3. Rs. 5,00,001 to Rs. 8,00,000 = 20%
4. Above Rs. 8,00,000 = 30%

Derive the market supply from the market supply schedule of two firms A and B.

“Construction of Dams can have negative impacts on the ecosystem”

- Is this statement True or False? Justify. (Any two points)

True

False

What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.

Explain time utility with an example.

State two dissimilarities between Monopolistic competition and Perfect competition.

Is a multiple use power generating machine owned by a factory, sunk capital or floating capital? Give two arguments to support of your answer.

Give five points of difference between Commercial and Central Bank.

With reference to the picture given below answer the questions that follow:

1. Define the concept.
2. Explain any three types of the concept.

Explain the term impact of a tax?

Explain the term incidence of a tax?

Explain in brief two merits of direct tax.

What is Disinvestment Policy?

Explain any three problems of public sector undertakings in India.

Prepare a hypothetical market demand schedule and draw a market demand curve based on it.

Define Money.

Distinguish between fixed deposit and demand deposit. (Any two)

Explain any four advantages of a bank account.

“The inverse relationship between price and quantity demanded does not hold good in many cases.”

1. Justify the above as Yes or No.
2. If justified, explain in brief the Giffen Effect.

What do you mean by productivity of Land?

How would the following effect the productivity of Land?

1. Location
2. Investment on Land
3. Security of Tenancy

Name the factors of production.

Justify the following in brief:

Division of labour encourages large-scale production.

Justify the following in brief:

Capital is an immobile factor in the short run.

“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:

1. What is the type of market referred to?
2. State and draw the type of demand curve faced by the market above.
3. Differentiate between the market indicated above and monopoly on the basis of:
   1. No. of sellers
   2. Market price
   3. Entry and exit of firms in the market

Read the extract given below and answer the questions.

1. What commercial activities would the resorts offer?
2. State the quality of a factor of production highlighted above.
3. Define price elasticity of demand.
4. State the doctrine of Laissez faire.

The Central bank is having the authority to regulate the amount of money supply in the economy.

Based on the above explain the following.

1. Credit Rationing
2. CRR
3. Regulation of Margin Requirements
4. Bank Rate