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Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2017 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2017 Solved

Section – A (40 Marks)
(Attempt ALL Questions from this Section)

Question 1.
(a) How does land differ from other factors of production with respect to its supply ? [2]
(b) What is meant by cost push inflation ? [2]
(c) With the help of a diagram define perfectly elastic demand. [2]
(d) Identify the type of division of labour in an automobile industry. Explain. [2]
(e) With suitable examples differentiate between complementary goods and substitute goods. [2]
Answers:
(a) Land is limited in supply : The quantity of land is limited. Its supply can neither be increased nor be decreased by any human effort. Hence economists remark that land has no supply price.
(b) Cost push inflation occurs when rise in price is due to rise in the cost of production. In this type of inflation, demand factor remains unchanged and supply factor plays an important role. Once this type of inflation sets in one industry, it spreads to all other industries of an economy.
(c) Perfectly Elastic Demand: When no change or a very small change in price causes an enormous variation in demand of a commodity, it is known as perfectly elastic demand. But in reality, such demands do not occur. It is just an extreme condition. In this case e = ∞.

(d) In automobile industry, we see the incomplete division of labour. In such a division, work is divided into different processes and sub processes in such a manner that only a part or component of product is produced at each step.
(e)

Complementary Goods	Substitute Goods
1. These are goods which are used together to satisfy a particular want.	1. These are goods which can be used in place of one another to satisfy a particular want.
2. Complementary goods have joint demand.	2. Substitute goods have competitive demand.
3. Examples: Torch and Battery Car and Petrol	3. Examples: Tea and Coffee Coke and Pepsi

Question 2.
(a) Why is supply directly proportional to price ? [2]
(b) Explain briefly any one determinant of an exceptional demand curve. [2]
(c) What is meant by unproductive public debt ? [2]
(d) Mention one contingent function of money. [2]
(e) Explain briefly the impact of cost of production on elasticity of supply. [2]
Answers:
(a) Supply is directly proportional to price because supply is caused by the decision of sellers in the market. The most important indicator that the sellers would look for while making their sales is price. Price of a commodity serves as an incentive for producers and sellers.

1. If the price of a commodity increases, it will motivate producers to produce more and sellers to sell more of the commodity.
   If the price of a commodity falls, producers and sellers would like to decrease the supply of that commodity because it will reduce their profit margin. Hence, the direct relation between price and supply.

(b) Possibility of future rise in prices : It is one of the most important determinants of an exceptional demand curve. If a consumer anticipates that the price of a commodity will rise in future he will purchase more of that commodity now. The consumer will purchase more even if current price is high.

(c) Public debt may be productive or unproductive, depending on the use of public loans. When government borrows for non-developmental uses such as war finance or extravagancy in public administration, the debt becomes unproductive. It does not create any real income in return. Such debts are dead weight debts.

(d) Assisting Production Decisions : The main objective of a producer or manufacturer is to maximize his sales, revenue or profit. Therefore, he wants to employ such an amount of factors of production (land, labour and other materials) which help in achieving the goals of profit maximisation. While employing any factor, the firm has to make payments to pay wages to the workers, interest to the owners of capital etc. All such factor payments are made in terms of money. Therefore, money prices of these factors help a firm in taking important production decisions.

(e) Elasticity of supply is greatly influenced by how costs of production respond to output changes. If an increase in output by the firms in an industry causes only a slight increase in their cost per unit or leads to decrease in Cost per unit, supply will be fairly elastic. If, on the other hand, an increase in supply leads to a large increase in cost of production, the supply would be relatively inelastic.

Question 3.
(a) How does proportional wx differ from progressive lax? [2]
(b) Capital depreciates. Explain. [2]
(c) What is meant by double coincidence of wants ? How does money overcome this problem? [2]
(d) Expand COPRA. What is its objective? [2]
(e) Indirect taxes sometimes he/p in social reforms. Explain. [2]
Answers:
(a)

Proportional Tax	Progressive tax
1. Taxes in which the rate of tax remains constant, though the tax base changes, are called proportional taxes.	1. Taxes in which the rate of tax increases with the rise in tax payer’s income, are called progressive taxes.
2. It is inequitable as it falls heavily on the poor incomes.	2. It is more equitable, as a large part is taxed on higher incomes.

(b) When capital is used again and again, it depreciates. For example, if any machine is used for a considerable period of time, then it may not be suitable for future use due to depreciation and have to be replaced after some time. Therefore, the producer has to keep some fund every year for the replacement of machinery and this is known as depreciation fund.

(c) Double coincidence of wants means both the buyer and seller should be ready to exchange the goods. It is the major limitation of the barter system. By separating the act of sale and purchase, money has overcome the problem of double coincidence of wants.

(d) COPRA stands for Consumer Protection Act. The central government legislated it in the year 1986 which not only recognises consumer rights but has also established a redressal system unique in the world.
The objective of the Act is to provide for the better protection of the interests of consumers and for that purpose to make provisions for the establishment of consumer councils in each state by the respective state government.

(e) Indirect taxes sometimes help in social reforms. The statement is true. Heavy indirect taxes are imposed on articles which are undesirable and injurious to health like wine, cigarettes, opium etc. by the government and serve a great social purpose. it will restrict their consumption by the public. Curtailment of consumption of harmful goods increases social welfare.

Question 4.
(a) Distinguish between fixed capital and floating capital. [2]
(b) How does money act as a standard of deferred payment’ [2]
(e) Define public expenditure. [2]
(d) What is meant by consumer awareness? [2]
(e) Mention one difference between demand deposits and time deposits. [2]
Answers:
(a)

Fixed Capital	Floating Capital
1. Fixed capital is that type of capital which is used again and again for further production of goods.	1. If the capital can be used in alternative lines of production, it is called floating capital or free capital.
2. Examples of fixed capital are machine, office furniture, factory building etc.	2. Examples of floating capital are steel, wood, raw material, electricity etc.

(b) Money acts as a standard of deferred payment. It means payment to be made in future can be expressed in terms of money. Money is accepted as a standard of deferred payment because it has a general acceptability and it can be expressed in definite and standardised units.

(c) Public expenditure is the expenditure incurred by the public authorities (central, state and local governments) to satisfy those common wants which, the people in their individual capacity are unable to satisfy efficiently. Public expenditure, thus tends to satisfy collective social wants. Expenditure incurred by the central authorities in running the government expenditure on administration and maintenance of law and order are the examples of public expenditure. Expenditure incurred on education, public recreation, public works, etc. are familiar examples of public expenditure incurred for the satisfaction of collective wants.

(d) Consumer: Someone who purchases goods for personal use.
Awareness : Having knowledge of; state of elementary or undifferentiated consciousness.
Consumer awareness means consumer’s consciousness towards their rights and duties. It is a must for a consumer to follow these rights. It is implemented for the protection of the consumer,’ so that he/she is not exploited by the seller of the products.

(e) Demand deposits and time deposits :

1. Demand deposits can be withdrawn at any time, whereas the time deposits can be withdrawn only after the expiry of a specific period.
2. There is no interest rate on demand deposits, whereas the time deposits carry a high interest rate.
3. Demand deposits are chequeable and can be withdrawn through cheques, whereas time deposits are not chequeable.

Section – B (40 Marks)
(Attempt any four Questions from this Section)

Question 5.
(a) Define labour. Suggest three methods to improve the efficiency of Indian labour. [5]
(b) What is meant by capital formation? Explain three causes of low capital formation in India. [5]
Answers:
(a) Acc. to Thomas, “Labour consists of all human efforts of body or mind, undertaken in expectation of a reward.” Labour is the human resource of production. It always indicates some kind of mental or physical exertion undertaken with a motive to earn money.

Following are the methods to improve the efficiency of Indian labour:

1. The payment of wages should be fair and prompt. Bonus (i.e., a part of profit) must be given to workers as an incentive to hard work.
2. Hours of work should not be more than eight hours. Other facilities like holidays, leaves etc. should also be provided to the workers without further delay.
3. Social security measures such as insurance schemes, provident fund contribution, pensions etc. should be introduced.
4. Working conditions in the factories/workplace should be improved.

(b) Capital Formation :
Capital formation means the creation of capital. A change in the stock of any capital during a particular period of time is called capital formation. Three important stages of capital formation are creation of savings, mobilisation of savings and investment of mobilised savings.

Reasons for the slow rate of capital formation in India :

1. Lack of ability to save : Because of poverty, poor people are unable to save more than a negligible part of their earnings. Hence, a low rate of savings leads to a low rate of capital formation in the Indian economy.
2. Lack of willingness to save : In certain parts of the country, there still exists a feudal economic system. Even people who have the ability to save money are not willing to save and spend all their money on day- to-day consumption.
3. Insufficient mobilisation of savings : People are not mobilising the savings for capital formation. Most of their savings are kept in the form of gold and cash at home. These savings are not used productively because of poor banking knowledge and a poor banking network in underdeveloped states.

Question 6.
(a) Mention an important difference between a Commercial Bank and the Central Bank. Explain briefly three methods adopted by Commercial Banks to advance credit to borrowers. [5]
(b) Define the term ‘Entrepreneur ’. Discuss three ways by which an entrepreneur promotes economic growth. [5]
Answers :
(a) Central bank is the apex monetary institution which has been specially empowered to exercise control over the banking system of the country. On the other hand, the commercial banks, are the constituent units of the banking system. Central bank does not operate with profit motive, like commercial banks.

Methods adopted by Commercial Banks to advance credit to borrowers are as follow :

1. Cash Credit: In cash credit, the bank advances a ‘cash loan’ a specified limit to the customer, against a bond or any other security. A borrower is required to open a current account and bank allows the borrower to withdraw upto the full amount of the loan. The interest is charged only on the amount actually utilized by the borrower and not on the loan sanctioned.

2. Loans : A loan is a specified amount sanctioned to the credit of a borrower for a fixed period. However, before sanctioning the loan, the bank is required to ascertain and satisfy itself about the ability of the borrower to repay according to the soundness of his scheme or business, and the genuineness of his purpose. Invariably, a loan is granted against some kind of security of assets or personal security of the borrower and the interest is charged on the full amount sanctioned as loan, irrespective of the fact, whether full amount or part of it has been used. In case of loans, the borrower is provided with the facility to repay the loan in installments or as a lump-sum.

3. Discounting of Bills of Exchange : The banks provide financial help to the merchants and exporters by way of discounting their bills of exchange. However, these merchants and exporters must be the customers of that bank. In such facility, the bank pays the amount of bill presented by the customer, after deducting the usual bank discount. In this way, the customer gets the amount of the bill before the date of its maturity. As such the bank assists its. customers to a great extent by accepting their bills and providing them with liquid assets (money). Usually a bill matures after 90 days or so and then the bank present it to the acceptor and receives full amount of the bill.

(b) Acc. to Richard Cantillon, “An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.”

Entrepreneur promotes economic growth in the following ways:

1. Increasing Production : Entrepreneurship results in harnessing the various factors of production such as land, labour, capital and technology to the fullest extent. Entrepreneurs take up production of goods and services for meeting the demand of consumers, import substitution and exports.
2. Employment Generation: Entrepreneurship creates job opportunities in an economy. When economies ’ are into recession, large business units retrench their labour force and workers search for job in small business units.
3. Innovation : Entrepreneurship results in new technologies and products that displace older methods and products. It results in higher income and wealth.
4. Increasing Competition : Entrepreneurship results in innovation which leads to the development of new products, services and methods of production. Consequently competition increases in the industry as a whole leading to better products and lower prices.

Question 7.
(a) With the help of a suitable diagram explain the meaning of rightward shift in the demand curve. Explain briefly any two of its determinants. [5]
(b) Name the institution which enjoys the monopoly of note issue. Explain the following functions of this institution:
(i) Bankers Bank
(ii) Banker to the Government [5]
Answers:
(a) Rightward shift in the demand curve (increase in demand) refers to a situation when quantity demanded of a commodity increases, even when own price of the commodity is constant. In other words, increase in demand occurs when quantity demanded of a commodity increases because of the factors, other than ‘own price of the commodity’. It is illustrated by following table and diagram.

of Px(₹)	Qx (Units)
10	20
10	30

The diagram shows that demand curve shifts from D₁ to D₂, even when own price of the commodity remains constant at ₹ 10 per unit.

Determinants of rightward shift in demand curve are:

1. Change in income : With the increase in income demand curve shifts to the right.
2. Change in tastes and preferences : 1f the tastes of the consumer change in favour of the good then demand curve will shift to the right.

(b) ‘Central Bank’ is the institution which enjoys the monopoly of note issue.

Functions of the Central Bank:

(i) As ‘Bankers’ Bank’: There are usually hundreds of banks in a country. There should be some agency to regulate and supervise their proper functioning. This duty is discharged by the Central Bank. Central Bank acts as Banker’s Bank in three capacities :

1. It is custodian of their cash resources. Banks of the country are required to keep a certain percentage of their deposits with the Central Bank; and in this way the Central Bank is the ultimate holder of the cash reserves of commercial banks,
2. Central Bank is lender of last resort. Whenever banks are short of funds, they can take loans from the Central Bank. Thus Central Bank is a source of great strength to the banking system,
3. It acts as a bank of central clearance, settlements and transfers. Its moral persuasion is usually very effective, so far as commercial banks are concerned.

(ii) As ‘Banker to Government’: Central Bank functions as a banker to the government – both central and state governments. It carries out all banking business of the government. Government keeps their cash balances in the current account with the Central Bank. Similarly Central Bank accepts receipts and makes payment on behalf of the governments. Also Central Bank carries out exchange, remittance and other banking operations on behalf of the government. Central Bank gives loans and advances to governments for temporary periods, as and when necessary, and it also manages the public debt of the country.

Question 8.
(a) State the law of supply. Explain any three factors other than price which determine supply in the market. [5]
(b) Explain the meaning of the following terms : [5]
(i) Impact
(ii) Shifting
(iii) Incidence
To which tax are these terms relevant ? Explain any one merit and two demerits of this tax.
Answers:
(a) The Law of Supply states that other things being equal, quantity supplied increases with increase in price and decreases with decrease in price of commodity.

The factors determining supply in the market are :

1. Goal of the Firm: If goal of the firm is to maximise profits, more quantity of the commodity will be offered at a higher price. On the other hand, if goal of the firm is to maximise sales (or maximise output or employment) more will be supplied even at the same price.
2. Expected Future Price: If the producer expects price of the commodity to rise in the near future, current supply of the commodity will reduce. If, on the other hand, fall in the price is expected, current supply will increase.
3. Change in Technology: Change in technology also affects supply of the commodity. Improvement in the techniques of production reduces cost of production. Consequently, more of the commodity is supplied at its existing price.

(b)

1. Impact : The term impact is used to express the immediate result of or original imposition of the tax. The impact of a tax is on the person on whom it is imposed first. Thus, the person who is liable to pay the tax to the government bears its impact.
2. Shifting: The burden of the tax can be transferred to others through a process of shifting. It may be noted that the whole burden of the tax may not be shifted to others. It may be that a part of the tax may be shifted to others and a part be borne by the one who initially pays the tax.
3. Incidence: The incidence of a tax refers to the money burden of a tax on the person who ultimately pays it. The impact and the incidence of tax is on the same person. He cannot shift or transfer the burden on some other person, he has to pay it himself.
   These terms are relevant to direct tax.

Merit of direct tax :

Equitable: A direct tax is an equitable tax. It is equitable in the sense that, it is levied according to the taxable capacity of the people. The rates of direct taxes, like the income tax, can be fixed in such a way that the higher the income of a man, the greater is the rate at which he has to pay the tax. Such a system is known as progressive taxation.

Demerits of direct tax :

1. Inconvenient: The greatest drawback of direct taxes is that they put the tax-payer to a lot of botheration and inconvenience. Sometimes, the tax-payer is called to pay the entire tax in one installment. Besides, the tax-payers have to maintain elaborate accounts for the satisfaction of the tax officials.
2. Evadable : By submitting false returns of income, some people evade the tax. That is why a direct tax is “A Tax on Honesty”.

Question 9.
(a) Mention one way by which consumers are exploited in the market. [5]
Explain clearly three reasons as to why consumers are exploited.
(b) Public expenditure in India has increased over the years. Explain four principle reasons for its increase. [5]
Answers:
(a) Consumers are exploited in the market in the following ways:

1. By giving defective goods : The consumers can be exploited by the seller of the product by giving defective goods, i.e., which are not upto mark.
2. Charging high prices : The consumers can be exploited by charging high prices. Prices can be charged high when customer is not aware or shortage of product prevails.

Reasons for consumers exploitation are :

1. Shortage of supply : In most of the developing or under developing economies population is very high. So demand for the products is also very high. But due to under development of industry there is a shortage of supply. This gives rise to hoarding and price rise.
2. Limited competition: Due to under-development of industry there is lack of competition in the market. This may lead to exploitation of the consumer.
3. Illiteracy and ignorance of the consumers: In most of the developing and under developed economies illiteracy rate is very high so consumers can be easily cheated by the producer.

(b) Four principle reasons for increase in public expenditure are as follow:

1. Defence: An important factor responsible for increase in public expenditure is the large defence expenditure that the government allocates to defend its country from the attack of other countries so as to maintain its sovereignty
2. Population growth : In India, the population has increased at an alarming rate. It has increased from 36 crores in 1951 to 125 crore in 2011. As a result, the government has to incur great expenditure to meet the requirements of increasing population.
3. Developmental work : Modem state has also taken up developmental work in addition to their primary functions of administration and defence. It requires huge public expenditure.
4. Rise in price level: As a result of the rise in price level, the public expenditure has gone up everywhere. The reason is that, the private individuals and also the government have to buy goods and services from the market at higher prices.

Question 10.
(a) (i) What is meant by the term ‘Inflation ’? What is its impact on debtors ? [5]
(ii) Explain the following :
1. Creeping inflation
2. Walking inflation
3. Hyper inflation
(b) With the help of a suitable example explain the meaning of geographical or territorial division of labour. Discuss any three advantages of division of labour. [5]
Answers:
(a) (i) Inflation is generally defined as the process of persistent and appreciable rise in the general price level.
Impact on debtors : Debtors gain when they pay back their debt during inflation. It is because the value of money was high when they borrowed but came down when they repaid their debts. As against this, the creditors are losers during inflation. However, if debtors take loans during inflationary period, the position is reversed. In that case, the debtors are losers and the creditors are gainers.

(ii)
1. Creeping Inflation : Creeping inflation occurs when there is a sustained rise in prices over time at a mild rate, say around 2 to 3 per cent per year. It is also known as ‘mild inflation’. This type of inflation is not much of a problem. It is generally known as conducive to economic progress and growth. In this form the prices rise imperceptibly over a long period.
2. Walking Inflation : When the rate of rise in inflation is of international range of 3 to 6 per cent per annum, it is called walking inflation. It is an alarming signal for the government to control it before it worsens.

3. Hyper or Galloping Inflation : Hyper inflation occurs when monthly increase in prices is 20 per cent to 30 per cent or more. At this stage there is no limit to price rise, and price rise goes out of control. Money become almost worthless, causing severe hardship to people. There is complete collapse of currency, the monetary system collapses and the economic and political life gets disrupted.

(b) Geographical (or Territorial) Division of Labour:
Sometimes, due to some reasons, the production of certain goods takes place in a particular place, state or country. This particular type of division of labour is called geographical division of labour. For example, concentration or localisation of textiles in Bombay (Mumbai), jute industry in Bengal and sugar industry in U.P. are good examples of territorial division of labour. Some regions are famous for some specific types of activities. For example, Moradabad is famous for brassware, Jaipur for diamond jewellery, etc.
Advantages of Division of Labour :

Division of labour has the following advantages:

1. Right Man at the Right Job: Since work is divided into a number of parts or sub-parts, each worker can be given a job according to his taste and preference.
2. Increase in Efficiency of Labour : When a worker does the same work again and again, he gets specialisation in it. In this way, the division of labour leads to a great increase in efficiency and hence production.
3. Saving of Time and Tools : Divisiorrof labour saves both time and tools. It reduces the time period required for completing the work. Likewise, there is better use of tools and implements. For example, it is not necessary to provide each worker with a complete set of tools. He can be given only those tools that he requires.

Solving ICSE Class 10 Geography Previous Year Question Papers ICSE Class 10 Geography Question Paper 2019 is the best way to boost your preparation for the board exams.

ICSE Class 10 Geography Question Paper 2019 Solved

Maximum Marks: 80
Time allowed: 2 hours

General Instructions:

• Answers to this Paper must be written on the answer sheet provided separately,
• You will not be allowed to write during the first 15 minutes.
• This time is to be spent in reading the question paper.
• The time given at the head of this Paper is the time allowed for writing the answers.
• Attempt seven questions in all.
• Part I is compulsory. All questions from Part I are to be attempted.
• A total of five questions are to be attempted from Part II.
• The intended marks for questions or parts of questions are given in brackets [ ].
• To be supplied with this Paper: Survey of India Map Sheet No. 45D/7 and 20 cm of twine.

Note:

• In all Map Work, make wise use of arrows to avoid overcrowding of the map.
• The extract of Survey of India Map Sheet No. 45D/7 must not be taken out of the examination hall. It must be handed over to the Supervising Examine? on completion of the paper.
• The Map given at the end of this question paper must be detached, and after marking, must be fastened to your answer booklet.
• All sub-sections of the questions attempted must be answered in the correct serial order.
• All working including rough work should be done on the same answer sheet which is used to answer the rest of the paper.

Part – I (30 Marks)
(Attempt all questions from this part)

Question 1.
Study the extract of the Survey of India Map sheet No. 45D/10 and answer the following questions:
(a) (i) Give the six figure grid reference for the temple that is located to the south west of Pithapura settlement. [2]
(ii) Give the four-figure grid reference for a settlement where people of the region meet socially and for trade at least once in a year.
Answer:
(i) 659326
(ii) 6233 settlement, 6031

(b) (i) What is the pattern of drainage seen in the grid square 6729? [2]
(ii) What is the pattern of settlement seen in the grid square 6534?
Answer:
(i) Radial
(ii) Nucleated or compact settlement

(c) What do each of the two numbers (281 printed in black colour and 20 printed in red colour) in the grid square 6429 indicate? [2]
Answer:
281 is the height of the land whereas 229 is distance stone of the road.

(d) (i) Name any two man-made features in grid square 7030. [2]
(ii) Name any two natural features in grid square 6729.
Answer:
(i) Houses / Huts, cart track
(ii) Rivers streams, Hills

(e) What is the significance of the following? [2]
(i) Fire line in grid square 6928.
(ii) Water body found in grid square 6832.
Answer:
(i) It is wide path filled with water or sand to prevent forest fire.
(ii) This is river with embankments to save the land from flooding.

(f) Calculate the area of the region between 16 and 19 Eastings and 18 and 22 Northings. Give your answer in kilometre square. [2]
Answer:
Number of squares – 20 .
1:50,000
Scale used 2 cm = 1 km
Area = 20 cm = 10 km²

(g) Give a reason for each of the following: [2]
(i) The water in some of the wells in the north west quarter of the map is not fit for drinking.
(ii) The region near Anadra and Gulabganj has many causeways.
Answer:
(i) Due to presence of brackish wells and water bodies marked in grid 6232.
(ii) Causeway is a metalled raised road across a minor stream. A number of causeways are built in these regions is due to presence of numerous minor streams.

(h) (i) What is the main means of irrigation used by people living in the area shown on the map? [2]
(ii) What is the main occupation of the people of the region shown on the map?
Answer:
(i) Sipu nadi as many canal have been built from this along with number of distributing.
(ii) Presence of cart track, park shows dependence infront. So they are involved in forest based occupations.

(i) Which according to you is the most important settlement? [2]
Answer:
Pamera 6233 presence of PS, PO compact settlement with annual fair.

(j) Name any two means of transport used by the people living in the area shown on the map extract. [2]
Answer:
Cart track, Metalled road, footpath.

Question 2.
On the outline map of India provided:
(a) Shade and label the Gangetic Plain. [1]
(b) Shade and label an area of latente soil in North India. [1]
(c) Mark and label the Kara koram Mountains. [1]
(d) Mark and name the Palk Strait. [1]
(e) Shade and Label the river Cauveri. [1]
(f) Mark and name Mumbai. [1]
(g) Mark and name the Nathu La Pass. [1]
(h) Mark and name Digboi. [1]
(î) Shade and name the Deccan Plateau. [I]
(j) Shade and label the river Jhelum. [1]
Answer:

Part-II (50 Marks)
(Attempt any five questions from this part)

Question 3.
(a) (i) What type of wind is‘Monsoon? What is its direction during summer? [2]
(ii) Mention two characteristics of the Indian monsoon.
Answer:
(i) Periodic, Wind
(ii)

• Seasonal reversal of winds.
• Hot and humid summer whereas cold and dry winter.

(b) With reference to the summer season in India, answer the following questions: [2]
(i) Mention the duration of the summer season in India.
(ii) What is the atmospheric pressure condition during summer season over the central part of India ?
Answer:
(i) March to May
(ii) High atmospheric pressure

(c) Give a reason for each of the following: [3]
(i) Goa receives heavier rainfall than Puducherry.
(ii) Mawsynram receives the highest average annual rainfall.
(iii) Mangaluru is cooler than Delhi in summer season.
Answer:
(i) Because Goa is in the windward side of Western Ghats whereas Puducherry is in the Eastern Ghats.
(ii) Mawsynram lies in the Khasi Hills in Meghalaya and gets heavy rainfall from the Bay of Bengal branch of the summer monsoon. Here the hills are funnel shaped so the moisture laiden monsoons have to take a sudden rise which cause heavy rain.
(iii) Mangaluru is cooler due to moderating effect of sea whereas Delhi is in the interior of the Indian sub-continent.

(d) Study the data of distribution of temperature and rain for Station X and answer the questions that follow : [3]

(i) Is Station X in the coastal area or in the interior of the country?
(ii) Calculate the total annual rainfail for Station X.
(iii) Name the wind that brings most of the rainfall to Station X.
Answer:
(i) As temperature range is very high so station X is in the interior of the country.
(ii) Annual rainfall = 2 + 1 + 0 + 5 + 15 + 62 + 71 + 81 + 59 + 12 + 10 + 3 = 321cm
(iii) South-west monsoon

Question 4.
(a) (i) Name the Indian soil which is formed due to the weathering of basic igneous rocks. [2]
(ii) Name two states of India where this type of soil is found.
Answer:
(i) Black soil
(ii) Maharashtra and Gujarat

(b) Name the following: [2]
(i) An important transported soil of India.
(ii) Soil that is rich in iron oxide.
Answer:
(i) Alluvial soil
(ii) Red soil

(c) Give a geographical reason for each of the following: [3]
(i) Terrace farming is an ideal soil conservation method for hilly regions.
(ii) Dry farming is preferred in areas with red soil.
(iii) Wind is a common agent of soil erosion in arid regions.
Answer:
(i) Because hill slope is cut into a number of terraces having horizontal top and steep slopes on the back and front. So the terrace farming is an ideal soil conservation method for hilly regions.
(ii) Because it does not require much moisture.
(iii) Due to low rainfall, wind can lift the valuable top soil from one area and deposits in another area. So that wind is a common agent of soil.

(d) Briefly answer the following: [3]
(i) Mention one way in which man is responsible for soil erosion.
(ii) How can deepening of the river bed help in preventing soil erosion?
(iii) Mention a physical characteristic of Laterite soil.
Answer:
(i) Deforestation
(ii) Deepening of the river bed will prevent floods and ultimately shore and stream bank erosion.
(iii) The soils an indefinitely durable so they provide valuable building material.

Question 5.
(a) Give two reasons to explain as to why we need to conserve our forest resource. [2]
Answer:

• Forests provide many major and minor products like wood, gum, fiber, fruits etc.
• They play a significant role in the prevention and control of soil erosion.

(b) (i) Mention two conditions required for the growth of Littoral Forest. [2]
(ii) State one characteristic feature of the forest found in the Nilgiri Hills.
Answer:
(i)

• Forests occur in and around the deltas, estuaries and creeks prone to tidal forests.
• Trees can survive both fresh as well as brackish water.

(ii) Nilgiri region receives rainfall of 150 to 180 cm so moist deciduous forests dominate the region. Trees shed their leaves dining the dry season.

(c) (i) Give two reasons to explain as to why the Tropical Evergreen Forests are difficult to exploit for commercial purpose. [3]
(ii) Name any two trees found in Tropical Evergreen forests.
Answer:
(i)

• They are very dense.
• Transport is not possible.

(ii) Ebony and Mahogany

(d) Briefly explain each of the following: [3]
(i) The trees in the Tropical Desert Forest have stunted growth.
(ii) There is a gradual increase in the forest cover in India in recent times.
(iii) The trees in Monsoon Deciduous forests, shed their leaves for about 6-8 weeks during March and April.
Answer:
(i) To minimize loss of water. Lack of water and minerals in the soil.
(ii) This is due to promotion of Social Forestry.
(iii) This is due to longer dry season.

Question 6.
(a) “The modem means of irrigation are gaining popularity.”
Give two reasons to justify this statement. [2]
Answer:
(i) Fertiliser and nutrient loss is minimised.
(ii) Loss of water is minimum.

(b) Mention two factors that favour the development of tube well irrigation in Punjab. [2]
Answer:
(i) They are reliable source of irrigation.
(ii) They can be easily dug.

(c) Give a reason for each of the following: [3]
(i) Most of the South Indian states are not suitable for development of canal irrigation.
(ii) There is an urgent need for water conservation in India.
(iii) Development of irrigation is essentialfor the growth of the agriculture sector of India.
Answer:
(i)

• The South Indian region being rocky is difficult to dig.
• Most of the South Indian rivers are non perennial.

(ii) Water is basic input in agriculture. So conservation of water is must for food security.

(iii) Rainfall in India is very uncertain, which increases the element of risk and makes crop production rather difficult.

(d) Briefly explain the following terms : [3]
(i) Inundation canal.
(ii) Rooftop rainwater harvesting.
(iii) Surface water.
Answer:
(i) Inundation canal: The canals which are drawn directly from the rivers without making any kind of barrage or dam at their head to regulate the flow of the river and canal.
(ii) Rooftop rainwater harvesting: It is a technique through which rainwater is captured from the roof catchments and stored in reservoirs.
(iii) Surface water: Water that is on the earth’s surface such as streams, rivers, lakes or reservoir, etc.

Question 7.
(i) Give two advantages of using bio-gas as a source of power. [2]
Answer:

• It does not cause any pollution.
• It is a cheap source of energy.

(b) Name the following : [2]
(i) A metallic mineral for which the Balaghat district of Madhya Pradesh is famous.
(ii) The multi-purpose project based on the River Sutlej.
Answer:
(i) Manganese
(ii) Bhakhra Nangal Project

(c) Give a reason for each of the following: [3]
(i) Odisha has benefitted greatly from the Hirakud project.
(ii) Copper is used to make electric wires.
(iii) India s location is advantageous for the generation of solar power.
Answer:
(i) Because it provides the required power to various mines and exploitation units.
(ii) Because it is a good conductor of electricity.
(iii) Because India being a tropical country, is well endowed with plenty of solar energy. Most parts of the country have bright sunshine throughout the year except a brief monsoon period.

(d) Briefly answer the following: [3]
(i) Name a mineral used to generate nuclear power.
(ii) Why is petroleum often referred to as “liquidgold”?
(iii) State one disadvantage of using coal as a source of power.
Answer:
(i) Uranium
(ii) Due to its high utility as a source of energy and as a raw material for a large number of industries.
(iii) Burning coal emits harmful wastes such as carbon dioxide, sulphuric acid, ash etc.

Question 8.
(a) Mention two steps taken by the government to boost agricultural production in India. [2]
Answer:

• Launching of irrigation schemes: Many multipurpose projects have been constructed to provide power and irrigation facilities to the farmers.
• HYV seeds and Agriculture Universities: In order to enhance production, government is providing HYV seeds to the farmers. Special seminars are also being held. Many new Agriculture Universities have been established.

(b) (i) Name two varieties of millet grown in India. [2]
(ii) What is the soil requirement for growing millet?
Answer:
(i) Jowar, Bajra
(ii) Red and sandy soil

(c) Study the picture given below and answer the questions [3]

(i) Mention the climatic condition that is suitable for the cultivation of this crop.
(ii) Name the state that produces the largest amount of this crop.
(iii) In which cropping season is this crop grown in India?
Answer:
(i) (a) 21°C to 27°C temperature is required for growing cotton which is found in Gujarat.
(b) Well distributed rain ranging between 50 cm to 80 cm is required which is available in Gujarat.

(ii) Gujarat

(iii) In Punjab and Haryana = April – May Tamil Nadu = Both Kharif and Rabi

(d) Give a geographical reason for each of the following: [3]
(i) Cultivation of wheat is confined to the northern part of India.
(ii) Practicing mixed farming gives security to farmers.
(iii) Ratoon cropping is gaining popularity among sugarcane cultivators.
Answer:
(i) Because it is a temperate crop, so it is cultivated in winter. It is grown in northern parts of India and in areas where the temperature does not rise beyond 10°C to 15°C in winter.

(ii) Because in this type of farming cultivation of crops and rearing of livestock is done simultaneously.

(iii) Because ratoon matures earlier and cost of production is also less.

Question 9.
(a) Where do the following iron and steel plants get their supply of iron ore from? [2]
(i) Bhilai Iron and Steel Plant
(ii) Vishakhapatnam Steel Plant.
Answer:
(i) Durg district of Chhattisgarh
(ii) Bailadila

(b) ‘Karnataka has developed as an important state for the growth of the Silk industry. ’ Give two reasons to justify the statement. [2]
Answer:

• It enjoys favourable climatic conditions for rearing the silkworms.
• Karnataka is the hub of skilled workers which are required for production of silk.

(c) With reference to sugar industries answer the following questions: [3]
(i) Why should these industries be located close to the sugarcane growing areas?
(ii) Name two by-products of the sugar industiy.
(iii) Mention one leading sugar producing state in North India and one in South India.
Answer:
(i) Because the sucrose content of the sugarcane starts decreasing within 24 hours of harvesting.
(ii) Bagasse, Molasses
(iii) North India – Uttar Pradesh, South India – Maharashtra

(d) Give a reason for each of the following: [3]
(i) Ahmedabad is an important cotton textile producing centre in India.
(ii) Cottage industries are significant for our economy
(iii) Petrochemical industries are usually located close to the oil refineries.
Answer:
(i) Because Ahmedabad lies near cotton belt of India and there is no problem of cheap and quality raw material.
(ii) They need less capital so they suits our economy.
(iii) Because they get their raw material from oil refineries.

Question 10
(a) “Roadways are an important means of transport in India
Give two reasons to justify the statement. [2]
Answer:

• Roads require less investment as compared to railway.
• These can be built at higher altitudes and at any place.

(b) (i) Why are South Indian rivers not ideal for the inland water transport ? [2]
(ii) Mention one advantage of coastal shipping.
Answer:
(i)

• Because rivers of Southern India are non-perennial.
• They flow swiftly over the plateaus and highlands.

(ii) It is environment-friendly.

(c) Give a reason for each of the following: [3]
(i) Nearly seventy percent of Indians do not use air transport.
(ii) A well-developed transport network is important for industrial growth.
(iii) Water transport is not as popular as land transport in India.
Answer:
(i) Because it is the costliest mode of transport.

(ii) Transport network helps in expansion of market.

(iii)

• Water transport as a whole is much slower than its road, rails or air competitors.
• It provides access to limited areas.

(d) (i) “The railway is an important means of transport as compared to airways.” State two reasons to support the statement. [3]
(ii) Mention one disadvantage of rail transport.
Answer:
(i) Railway is a cheap mode of transportation.

(ii)

• It can be used to transport heavy and building material whereas airways is more suitable for light material.
• It cannot provide door to door service.

Question 11.
(a) What impact does the waste accumulation have on the following? [2]
(i) Quality of air around us.
(ii) Quality of water around us.
Answer:
(i) Waste lowers the quality of air around us. Solid waste releases methane and other harmful gases.
(ii) Toxic waste has direct effect on marine life and affects the human beings indirectly. When the harmful toxic waste is dumped into the ocean, the fishes could consume the poisonous chemicals. When the fish is eaten by humans, this could lead to food poisoning.

(b) Mention two ways in which the decomposition of waste in open areas can affect human health. [2]
Answer:
(i) Rodents, insects and other vermin attracted to open dump sites may pose health risks. Dump sites with scrap tires provide an ideal breeding ground for mosquitoes, which can multiply 100 times faster than normal in the warm stagnant water.
(ii) If solid waste is burnt it may release harmful gases which can harm the health of nearby people.

(c) (i) What can an individual do to reduce waste at home? [3]
(ii) Why must segregation of waste be done before disposal?
(iii) How has composting proven to be a great help in managing waste?
Answer:
(i) Reducing the use of harmful articles which are non-biodegradable like polybags and replacing them with cloth bags.
(ii) Waste segregation is important because under this waste is segregated into different categories like biodegradable and non-biodegradable. It increases recycling process.
(iii) Compost is a way of recycling and reuse of organic waste.

(d) Give a reason for each of the following: [3]
(i) Trees must be planted in the industrial area.
(ii) Chemical fertilizers must be replaced by organic manure.
(iii) Plastic and polythene products must be banned.
Answer:
(i) Trees absorb carbon dioxide and releases oxygen.
(ii) The organic fertilizer can be used instead of chemical fertilizers and is better specially when used for vegetables. It increases the soil’s ability to hold water and makes the soil easier to cultivate.
(iii) Because these are non-biodegradable waste that contain the material which does not breakdown or decompose in the soil.

Solving ICSE Class 10 Geography Previous Year Question Papers ICSE Class 10 Geography Question Paper 2021 Semester 1 is the best way to boost your preparation for the board exams.

ICSE Class 10 Geography Question Paper 2021 Solved Semester 1

Maximum Marks: 40
Time allowed: 1 hour

General Instructions:

• You will not be allowed to write during the first 10 minutes.
• This time is to be spent in reading the question paper.
• All Questions are Compulsory.
• The intended marks for questions or parts of questions are given in brackets [ ].
• Select the correct option for each of the following questions.

Question 1.
Refer to the image and answer the question that follows : [1]

What do the black curved line in 3530 indicate?
(a) Open Scrub
(b) Dry land
(c) Broken Ground
(d) Seasonal stream
Answer:
(c) Broken Ground

Question 2.
Refer to the image and answer the question that follows: [1]

What is the direction ofDadra from Doha?
(a) North east.
(b) North west
(c) South east
(d) South west
Answer:
(a) North east.

Question 3.
Refer to the image and answer the question that follows: [1]

What is 7r in 4833 ?
(a) Relative height of 7 m
(b) Relative Height of 7 cm
(c) Relative depth of 7 cm
(d) Relative depth of 7 m.
Answer:
(a) Relative height of 7 m

Question 4.
Refer to the image and answer the question that follows: [1]

What mode of transport is used by the people of Malawa and Dantrai ?
(a) Foot path
(b) Cart track
(c) Pack track
(d) Railway
Answer:
(b) Cart track

Question 5.
Refer to the image and answer the question that follows: [1]

What is the main occupation of the people living in the area shown on the eastern part ?
(a) Mining
(b) Agriculture
(c) Forestry
(d) Sheep rearing
Answer:
(c) Forestry

Question 6.
Refer to the image and answer the question that follows: [1]

What is the social significance of Idarla ?
(a) Idarla is larger than other settlements.
(b) Idarla is closer to Dantrai.
(c) Annual fair in Idarla.
(d) Idarla is the largest settlement.
Answer:
(c) Annual fair in Idarla.

Question 7.
Refer to the image and answer the question that follows: [1]

What does the number 200 in grid square 4932 represent?
(a) A line of latitude
(b) A line of longitude
(c) Contour height
(d) Spot height.
Answer:
(c) Contour height

Question 8.
Refer to the image and answer the question that follows: [1]

What reference to the scale given on topographical map (2cm = lkm), what is the area of the land enclosed between 48 to 50 easting and 28 to 31 northings ?
(a) 06 sq. m.
(b) 06 sq. km
(c) 60 sq. km
(d) 60 sq. m.
Answer:
(b) 06 sq. km

Question 9.
What does nearness of contour lines indicate ? [1]
(a) It indicates steep slope.
(b) It indicates gentle slope.
(c) It indicates desert area.
(d) It indicates irregular area.
Answer:
(a) It indicates steep slope.

Question 10.
Which scale out of the following, that is printed on the topographical map, is considered a special scale ? [1]
(a) Statement Scale
(b) Representative fraction.
(c) Linear Scale
(d) Graphical Scale
Answer:
(b) Representative fraction.

Question 11.
With reference to winter rain in India answer the following: (z) Western disturbances provide rain to which of the following States ? [1]
(a) Punjab
(b) Sikkim
(c) West Bengal
(d) Maharashtra
Answer:
(a) Punjab

(ii) Which of the following cause rain to Coromandel Coast? [1]
(a) Retreating monsoons
(b) Kal Baisakhi
(c) Western disturbances
(d) South West Monsoons
Answer:
(a) Retreating monsoons

Question 12.
Westerly depressions are active in India during which of the following months ? [1]
(a) Between September and November
(b) Between December and January
(c) Between June and September
(d) Between March and May
Answer:
(b) Between December and January

Question 13.
Study the following data and answer the questions that follow:

(i) What is the annual range of temperature experienced by the station ? [1]
(a) 20° C
(b) 10° C
(c) 16° C
(d) 21° C
Answer:
(b) 10° C

(ii) Which according to the given data is the driest month? [1]
(a) March
(b) April
(c) May
(d) June
Answer:
(b) April

Question 14.
Why is the central part of Deccan plateau a dry area? [1]
(a) It is away from the sea
(b) There is no barrier in the path of rain bearing wind
(c) It is due to Jet Streams
(d) It is a rain shadow area of Western Ghats
Answer:
(d) It is a rain shadow area of Western Ghats

Question 15.
Why does Patna get more rain than Agra during the summer monsoon season ? [1]
(a) Patna lies on windward side
(b) Patna is on western side so Arabian Sea branch brings more rain to it than to Agra
(c) Patna is on eastern side, so Bay of Bengal branch brings more rain to it than to Agra
(d) Patna gets rain throughout the year
Answer:
(c) Patna is on eastern side, so Bay of Bengal branch brings more rain to it than to Agra

Question 16.
Which of the statement is not correct for Indian monsoon? [1]
(a) It is erratic in nature.
(b) It is seasonal in nature.
(c) Most of the rain is in winter time.
(d) Most of the rain is orographic or relief type.
Answer:
(c) Most of the rain is in winter time.

Question 17.
With reference to methods of prevention of soil erosion answer the following:
(i) Name the method used to prevent soil erosion by running water [1]
(a) Terrace farming
(b) Strip cropping
(c) Shelter belts
(d) Leaving the land fallow
Answer:
(a) Terrace farming

(ii) Name the method used to prevent soil erosion by wind. [1]
(a) Contour ploughing
(b) Strip cropping
(c) Plugging of gullies
(d) Use of fertilizer
Answer:
(b) Strip cropping

Question 18.
(i) Name the soil that is found in central Deccan plateau? [1]
(a) Black soil
(b) Alluvial soil
(c) Red soil
(d) Laterite soil
Answer:
(a) Black soil

(ii) How is the soil named by you in (i) above formed?[1]
(a) F ormed by the deposition of silt brought down by river.
(b) Formed by the weathering of lateritic rocks.
(c) Formed by the weathering of basic lava rocks.
(d) Formed by the weathering of metamorphic rocks.
Answer:
(b) Formed by the weathering of lateritic rocks.

Question 19.
Why is Laterite soil used in Goa and Kerala for the construction of houses? [1]
(a) It become hard when dry.
(b) This soil is generally coarse in texture and porous in nature.
(c) It has more of clay content in it.
(d) It looks beautiful when used in buildings.
Answer:
(a) It become hard when dry.

Question 20.
Why are the foothills ofHimalayas prone to excessive soil erosion? [1]
(a) Absence of crop cover.
(b) Too much of development of transportation.
(c) Large scale deforestation in past.
(d) Tourists are spreading pollutants in rivers.
Answer:
(c) Large scale deforestation in past.

Question 21.
Name the soil that possesses the following characteristics:
(i) Soil is generally confined to river basins. [1]
(a) Black soil
(b) Alluvial soil
(c) Red soil
(d) Laterite soil
Answer:
(b) Alluvial soil

(ii) Soil that becomes infertile because of desilication. [1]
(a) Black soil
(b) Alluvial soil
(c) Red soil
(d) Laterite soil
Answer:
(d) Laterite soil

Question 22.
The productive functions offorests include: [1]
(a) Habitat for the wildlife.
(b) Control the water flow.
(c) Provide various products such as timber, fuel wood, leaves, etc.
(d) Producing oxygen.
Answer:
(c) Provide various products such as timber, fuel wood, leaves, etc.

Question 23.
Which of the following pairs is correctly matched? [1]
(a) Babool – Tropical evergreen forest
(b) Sandalwood – Tropical deciduous forest
(c) Cinchona – Mountain forest
(d) Sal – Tidal forest
Answer:
(b) Sandalwood – Tropical deciduous forest

Question 24.
Name the type of Natural Vegetation that is found in the windward side of the Western Ghats: [1]
(a) Tropical Evergreen
(b) Tropical Deciduous
(c) Mangrove Forest
(d) Mountain Forest
Answer:
(a) Tropical Evergreen

Question 25.
Which of the following is NOT a characteristic of desert vegetation? [1]
(a) Short, stunted growth of vegetation
(b) Thick fleshy stems –
(c) Broad leaves
(d) Long and deep roots
Answer:
(c) Broad leaves

Question 26.
Why do we need forest conservation ? [1]
(a) Forests provide food for growing population.
(b) Forests helps in earning foreign exchange.
(c) Forests help in maintaining ecological balance.
(d) Forests look beautiful.
Answer:
(c) Forests help in maintaining ecological balance.

Question 27.
During which month do we celebrate VAN MAHOTSAV every year in India? [1]
(a) In December to February time period
(b) In July to September time period .
(c) In March to May time period
(d) In November to January time period
Answer:
(b) In July to September time period .

Question 28.
What is the term used to describe the growing of trees in various parts of the country? [1]
(a) Reafforestation.
(b) Deforestation.
(c) Agronomy.
(d) Afforestation.
Answer:
(d) Afforestation.

Question 29.
Why is there a need to conserve water in India? [1]
(a) A lot of water is polluted
(b) No water is found below the land in India
(c) Water is in abundance in India
(d) We receive lot of rain in summer
Answer:
(a) A lot of water is polluted

Question 30.
What are the advantages of rain water harvesting? [1]
(a) Recharge of ground water and conservation of water
(b) Provide water through canals to the farms and its conservation
(c) It helps in harvesting of crops and its storage
(d) Provide water for multinational companies to produce packaged drinking water
Answer:
(a) Recharge of ground water and conservation of water

Question 31.
Why is canal irrigation more popular in Northern Plains? [1]
(a) The surface of land is almost flat and soft soil is easy to dig.
(b) To supply water to a number of cities in the plain area.
(c) Rocky surface of the plain help in their construction.
(d) Rivers are seasonal and so canals are needed.
Answer:
(a) The surface of land is almost flat and soft soil is easy to dig.

Question 32.
Which of the following is correctly matched? [1]
(a) Tube well – Karnataka
(b) Tank – Punjab
(c) Lined well – Uttar Pradesh
(d) Canal – Mizoram
Answer:
(c) Lined well – Uttar Pradesh

Question 33.
Which of the following is NOT a suitable condition for the development of tank irrigation ? [1]
(a) Presence of natural depressions.
(b) Permeable rock structure.
(c) Plenty of rain in rainy period.
(d) Hard subsurface rock structure.
Answer:
(b) Permeable rock structure.

Question 34.
Which among the following is a ground water source? [1]
(a) Spring
(b) Pond
(c) River
(d) Lake
Answer:
(a) Spring

Question 35.
What is the importance of “DRIP IRRIGA TION”? [1]
(a) It is an ultra-modem system of irrigation.
(b) It is cheaper than other sources.
(c) It can irrigate more area with less usage of water.
(d) It is used by almost all farmers in India.
Answer:
(c) It can irrigate more area with less usage of water.

Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2016 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2016 Solved

Section – A (40 Marks)
(Attempt ALL Questions from this Section)

Question 1.
(a) Define a Direct Tax. Give two examples. [2]
(b) State any two differences between an entrepreneur and other factors of production. [2]
(c) How does money help in maximizing utility ? [2]
(d) Explain two rights of a consumer. [2]
(e) Mention one way by which the Government can reduce the inequalities of income and wealth in an economy. [2]
Answers :
(a) Direct taxes refer to those taxes which are really paid by those on whom they are legally imposed.

Examples:

1. Income Tax.
2. Wealth Tax.

(b) Two differences between an entrepreneur and other factors of production are:

1. Labourers get wages for the tasks they perform, whereas an entrepreneur hopes to get profit.
2. Labourers have nothing to do with the risks involved in the business. They will be sure to get wages. But an entrepreneur has to bear all risks of business and his income in form of profit is not certain and fixed.

(c)

1. Government realizes all taxes, fees, fines in terms of money.
2. It enables the consumers in making payments for goods and services of their requirement.

(d) Two rights of a consumer are :

1. Right to be heard: The consumer’s interests should receive due consideration at appropriate forums relating to consumer welfare:
2. Right to consumer education : This includes knowledge about goods and issues relating to consumer welfare.

(e) One way by which the government can reduce the inequalities of income and wealth in an economy is Direct Tax.

As direct taxes are progressive in nature, rich people are subjected to higher taxes in taxation, while the poor are exempted from direct taxes. Hence, these taxes help in removing inequalities of income.

Question 2.
(a) What is meant by contraction in demand ? [2]
(b) Mention two ways by which producers benefit from division of labour. [2]
(c) Mention the degree of Price elasticity of demand for the following goods.

1. cosmetics
2. medicine
3. school uniform
4. air conditioners [2]

(d) Explain briefly two factors affecting the productivity of land. [2]
(e) A special virtue of Indirect Taxes is that, they sometimes help in Social reforms. Explain. [2]
Answers:
(a) Other things being the same, when demand for a commodity falls as a result of rise in its price, it is called contraction in demand or decrease in quantity demanded.

(b) Two ways by which producers benefit from division of labour are:

1. Right man at the right job : Since work is divided into a number of parts or sub-parts, each worker can be given a job according to his taste and preference.
2. Cooperation among workers: The work cannot be completed unless workers cooperate with each other. Division of labour thus develops sense of cooperation among workers.

(c)

1. Cosmetics – Unitary elastic demand.
2. Medicine – Perfectly inelastic demand.
3. School uniforms – Relatively inelastic demand.
4. Air conditioners – Relatively elastic demand.

(d) Two factors affecting the productivity of land are :

1. Natural factors : Productivity of land is largely determined by its natural qualities, such as fertility, slope of land, climate, chemical and biological properties of the soil.
2. Improvements on land : Productivity of land is affected by land development measures, like provision of well or tube well, irrigation, proper drainage, fencing, etc.

(e) Check on consumption of harmful commodities :
Heavy indirect taxation on commodities like wine, opium, etc, serves a great social purpose. It may check their consumption and save the society from their harmful effects.

Question 3.
(a) Define Bank rate. [2]
(b) Mention two causes of increase in public expenditure in recent times. [2]
(c) Complete the following demand schedule: [2]

Price (₹)	Qty. of Mangoes demanded (kgs)
350.00	2
300.00
250.00
200.00
150.00
100.00

(d) Draw a perfectly inelastic supply curve. [2]
(e) Explain one cause for low capita/formation in India. [2]
Answers:
(a) The bank rate is the rate at which a central bank lends money to member commercial banks against approved securities or eligible bills of exchange.

(b) Two causes of increase in public expenditure in recent times are:

Political causes:

1. Growth of democracy : Expenditure on elections and by-elections is increasing. Number of ministers and executive officers has also been increased. The ruling party has to fulfil its promises and launch new programmes to persuade public opinion in its favour. This also require increasing state expenses in order to provide new amenities and opportunities to the people at large.
2. Increase in defence expenditure : International political situation is uncertain and insecure. People are always afraid of a war. Hence, every nation must be strong enough to protect itself to the extent possible for it. This has led to the increase in defence expenditure.

(c)

Price (₹)	Qty. of Mangoes demanded (kgs)
350.00	2
300.00	3
250.00	4
200.00	5
150.00	6
100.00	7

(d)

Price (₹)	Qty. supplied
4	10
5	10
6	10

(e) One cause for low capital formation in india is :

1. Most of the Public sector units (PSUs) have been running under losses.

Question 4.
(a) What is the impact of the level of technology on supply?[2]
(b) Define creeping inflation. Why is it considered good for an economy? [2]
(c) Mention two differences between fired deposits and demand deposits. [2]
(d) What is meant by a Degressive Tax system? [2]
(e) Define simple division of labour [2]
Answers:
(a) If the producers make use of improved and advanced technology in their process of production, the cost of production will come down. Total supplies, thus, will increase. But against it, supply of goods using old and inferior techniques of production will fall. That is why scientific discoveries and their applications to production of commodities are being made.

(b) When the rise in price is very slow like that of a snail or creeper, it is called creeping inflation. In terms of speed, prices rise about 2 percent annually which is regarded safe and essential for economic growth because it keeps the economy away from stagnation. But some economist regard creeping inflation as dangerous for the economy. According to them, in the beginning creeping inflation may look simple, but as time passes, it may assume alarming proportions.

(c)

Fixed Deposit	Demand Deposit
(i) They are not chequeable. (ii) These deposits constitute a part of money supply.	(i) They are chequeable. (ii) They fall under the category of near money or liquid assets.

(d) Under this system, the rate of tax increases upto a certain limit but after that a uniform rate is charged.

(e) Product based division of labour is also known as simple division of labour. Under it, everybody performs a particular occupation. The entire work is done by the same person. The activities of blacksmiths, carpenters, tailors are some examples of product based or simple division of labour.

Section – B
(Attempt any FOUR Questions from this Section)

Question 5.
(a) Define demand. Explain clearly two factors which determine demand. [5]
(b) Explain four important characteristics of labour as a factor of production. [5]
Answers:
(a) Demand refers to the quantity of a commodity that a consumer is willing to buy at different prices with a given period of time. If demand is made by an individual, it is called individual demand. And, if it is made by all the consumers in the market, it is termed as market demand. Two factors which determine demand are :

(i) Determinants of individual demand

1. Taste and preferences: The amount demanded of a commodity also depends on consumer’s tastes and preferences. When we begin to like certain commodities, their demand will increase. Reverse will happen, if we start disliking them.
2. Consumer credit facility : If credit facilities provided at low rates of interest by the banks, or sellers of the commodity households would be encouraged to buy more than what they would buy in their absence. For instance, demand for cars will increase, if car loans from banks are easily and cheaply available. Similarly demand for residential houses will rise, if home loans are made cheaper.

(ii) Determinants of market demand

1. Government policy : Government policy of a country can also affect the demand for a particular commodity or commodities. It may reduce the demand for a commodity by imposing tax on it or increase the demand by lowering its price through subsidies.
2. State of business : The prevailing business conditions in a country also affect the level of demand. For example, during boom periods, market demand will increase. On the other hand, the level of demand goes down during the period of depression.

(b) Four important characteristics of labour as a factor of production are :

1. Labourer sells his labour, not himself : The labourer does not sell himself, he sells his labour only. A labourer may or may not agree to do work. He remains quite independent while doing his task.
2. Labour is mobile : Labour alone is a factor which is mobile. It can move from one place to another and also from one occupation to another. Other factors of production such as land lacks mobility.
3. Labour differs in efficiency : All labourers are not equally efficient. Some labourers are more efficient due to their ability, training and skill, whereas others are less efficient on account of their illiteracy, ignorance, etc.
4. Labour can improve its efficiency : By investing capital on worker’s education and training, the productivity of labour can be improved.

Question 6.
(a) Define Public expenditure. Explain two ways by which it promotes economic development. [5]
(b) What is meant by efficiency of labour ? Explain three causes of low efficiency of labour in India. [5]
Answers:
(a) Public expenditure refers to the expenses incurred by public authorities central, state and local governments to satisfy common wants. The government imposes taxes and earns revenue from other sources to meet its expenditure requirements.

Two ways by which it promote economic development are :

1. To increase the production of certain essential commodities to end private monopolies in various spheres, the state starts public enterprises.
2. Public expenditure on the establishment of heavy and basic goods industries in the initial periods increases the growth rate of the economy.

(b) Efficiency of labour implies the productive capacity of a worker. It is influenced by several factors like climate, education and training, working conditions, level of wages, the type of machines and tools used, employer- employee relation, etc.

Three causes of low efficiency of labour in India are :

1. Hot climate : India is a subtropical country and its climate is hot. This is the most important natural cause of low efficiency of Indian labour.
2. Poor technology: The machines are either outdated and of poor standard. Besides, frequent breakdown of machines and electricity, causes the downfall in the efficiency of Indian workers.
3. Education and training : It is found that the Indian workers do not have proper education and training about the work. This lowers their efficiency.

Question 7.
(a) With the help of a diagram explain the meaning of Increase in supply and Decrease in supply. [5]
(b) What is meant by consumer awareness ? Explain briefly four ways by which consumers are exploited. [5]
Answers:
(a)

Increase in supply	Decrease in supply
(i) In a shift of the supply curve, a new supply curve is drawn. When the supply of a commodity increases due to favourable changes in factors other than price of the product’s own price,t is termed as increase in supply.	(i) When there is a decrease in supply, the supply curve shifts to the leftward. When the supply of a commodity falls due to unfavourable changes in factors other than the commodity’s own price, it is called decrease in supply.
(ii) Causes Improvements in technology. Fall in the prices of factors of production. Changes in the goals of the firms. Increase in the number of firms.	(ii) Causes Obsolete technique of production. Increase in the prices of related goods. Increase in the cost of production. Decrease in the number of firms.
(iii)	(iii)
(iv)	(iv)

(b) Consumer’s consciousness towards their rights and duties is known as consumer awareness.
Four ways by which consumers are exploited are :

1. Underweight and under measurement: The goods being sold in the market are sometimes not measured or weighed correctly.
2. Sub-standard quality : The goods sold are sometimes of sub-standard quality. Selling of medicines beyond their expiry dates and supply of defective home appliances are generally the regular guidances of consumers.
3. Duplicate articles : In the name of genuine parts, duplicate items are being sold to the consumers.
4. High prices : Very often the traders charge a price higher than the prescribed retail price.

Question 8.
(a) Define money. Explain the Primary functions of money. [5]
(b) Mention five differences between a Direct Tax and an Indirect Tax. [5]
Answers:
(a) Money may be anything chosen by common consent as a medium of exchange. It is accepted in payment for goods and services and in settlement of debts.

Primary functions of money are :

(i) Medium of exchange : Medium of exchange is considered to be the first and the most important function of money. As money has the quality of general acceptability, therefore all the exchanges in an economy take place in terms of money.

While functioning as medium of exchange, money benefits the society in many ways.

1. It overcomes the difficulties of barter system.
2. It promotes transactional efficiency in exchange with minimum effort and time. By acting as an intermediary, it increases the ease of trade.
3. It allows freedom of choice in the sense that a person can use money to buy goods of his choice from people who offer him the best bargain.

(ii) Measure of value: The second fundamental function of money is that it acts as a common measure of value. Just as we use kilogram in measuring weight of a commodity and metre in measuring length of a commodity similarly for measuring value of a commodity we take money as a unit of account. Money is a useful measuring rod of value when its own value remains stable. As the value of money is linked to its purchasing power, the general price rise or fall effects the purchasing power. Money also acts as a unit of account. For instance, the rupee is the unit of account in India, the dollar is the unit of account in USA and so on.

(b)

Direct Tax	Indirect Tax
(i) Taxes imposed on income or properties are direct taxes. (ii) They are directly paid to government by the person on whom it is imposed. (iii) They cannot be shifted on to others. (iv) These taxes are levied according to the ability of the tax-payer. (v) Examples : Income tax, Wealth tax, Corporation tax, Estate Duty.	(i) Taxes imposed on commodities are indirect taxes. (ii) They are paid to the government by one person but their burden is borne by another. (iii) They can be shifted on to others. (iv) These are the taxes in which tax paying ability of the tax-payer is assessed indirectly. (v) Examples : VAT, Excise duty, Customs duty, service tax etc.

Question 9.
(a) Explain briefly the five agency functions of a Commercial Bank. [5]
(b) Define Capital. Differentiate the following, with examples: [5]
(i) Real Capital and Debt Capital
(ii) Money Capital and Sunk Capital
Answers:
(a) Five agency functions of a commercial bank are :

1. Collecting receipts : Banks collect amounts of cheques, bills, promissory notes and hundies on behalf of their customers. They also collect interest, dividend and rent on the instructions of their customers.
2. Making payments: On the instructions of customers, banks make payments of loan instalments, interest, rent, insurance premium, taxes, etc., on behalf of account holders.
3. Purchase and sale of securities : Banks undertake purchase and sale of various securities like share stocks, bonds, debentures, etc., on behalf of their customers.
4. Trustee and Executer: Banks preserve the wills of their customers and execute them after their death.
5. Transfer of funds : Banks help their customers in transferring funds from one place to another through cheques, drafts, etc. On account of their network branches, throughout the country, they can easily provide this remittance facility.

(b) Capital refers to those reproducible or man-made durable goods that are used as inputs to produce other goods and services in the future.

(b)

(i)                          Real Capital	Debt Capital
Real capital refers to the physical stock of goods which are used as inputs in the production process. Thus, the machines, raw materials etc. are the examples of real capital. This is also called concrete capital. The contribution of real capital towards the increase in national output of any country is certainly more important than the money capital, because money capital does not necessarily contribute towards the increase in national output.	Debt capital consists of titles to wealth, like share, debentures, government promissory notes, etc. They represent invested funds and yield income. For example, if any individual invests his fund in purchasing IDBI flexibonds, ICICI bonds, etc., in our country, then he will earn fixed interest income on the value of those bonds. Hence, the bonds are considered as debt capital.
(ii) Money Capital	Sunk Capital
We may use the term ‘Money Capital’ or ‘Finance Capital’ to describe capital in terms of money. Money itself is not a means of production. However, money can be used for buying capital goods (like machines, and raw materials). It would not be wrong to treat the money used for this purpose as capital.	Sunk capital is that which can only be put to a single use. It is also called as ‘specialised capital.’ It always remains at the place where it is fixed. For example, a printing machine can only be put for printing and nothing else.

Question 10.
(a) What is meant by Price elasticity of supply ? Explain three factors which determine elasticity of supply. [5]
(b) Explain the following: [5]
(i) Internal and External debt
(ii) Productive and Unproductive debt
Answers:
(a) The price elasticity of supply indicates the responsiveness iri quantity supplied of a commodity due to one percent change in the price of that commodity. It is expressed as follows:

Three factors which determine elasticity of supply are :

1. Length of time : Price elasticity of supply also depends upon the length of time for response. It may be difficult to change quantities supplied in few weeks or months in response to price change but easy to do so over a period of year. Therefore supply tends to be relatively inelastic in the short-run and relatively elastic is the long-run.
2. Behaviour of cost of production : Elasticity of supply is influenced by how cost of production respond to automatic changes. If an increase in output by the firms in an industry causes only a small increase in their cost per unit or leads to decrease in cost per unit, supply will be fairly elastic. If, on the other hand, an increase in cost of production, the supply would be relatively inelastic.
3. Risk-taking: The elasticity of supply is determined by the willingness of the entrepreneurs to take risk. If entrepreneurs are willing to take risk, the supply will be more elastic. On the other hand, if entrepreneurs hesitate to take risk, the supply will be inelastic.

(b)

(i) Internal debt is that debt which is raised by the government from individual and institutions, etc. within the country. In the case of external debt, the government borrows from persons, institutions or governments of foreign countries. Internal debt is taken mainly for internal purposes as financing of development expenditure within the country while external debt is incurred both for development purposes and for meeting the balance of payment deficits.

The payment of interest on foreign debt reduces the national income of the debter country by transferring a part of its income remains the same in case of internal debt. Hence, external debts impose a greater burden on the domestic economy. However, they should not be considered bad if the same are used for productive purpose.

(ii) Productive debts are those debts which are used by the government for those projects which yield income. In other words, debt is said to be productive when it is used to finance a project which brings revenue to the government. For example, loans used for the construction of railways, irrigation and power projects and for the establishment of heavy industries such as iron and steel, cement, fertilisers, etc. The income earned from these projects is enough to pay the interest of the loan along with the principal.

Thus, productive loans should not be considered a burden on the government. On the other hand, unproductive loans refer to those loans which are incurred on those projects which do not yield any income. For example, loans taken by the government to finance a war and for covering the budgetary deficit are unproductive loans. Such loans do not add to the productive capacity of the economy. Unproductive loans are considered as a dead weight upon the government.

Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2015 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2015 Solved

Section – A (40 Marks)
(Attempt ALL Questions)

Question 1.
(a) State any two factors that determine the Division of labour. [2]
(b) Mention two ways by which land differs from other factors of production. [2]
(c) Define an Indirect tax with the help of an example. [2]
(d) Which of the following is considered as labour in Economics? Give a reason to support your answer. [2]

1. A professor working in a college
2. A social worker serving in an orphanage.

(e) What is the significance of Capital in promoting economic growth? [2]
Answers:
(a)

1. Skill.
2. Availability of technology.

(b)

1. Land is a natural factor of production.
2. Productivity of land varies from one place to another.

(c) Indirect tax is a tax levied on goods and services and its final burden can be shifted on the other. Example :

1. Excise Tax
2. VAT, value added tax.

(d)

1. Labour because he is involved in a productive activity.
2. No because he is not involved in a productive activity.

(e)

1. Capital is a basic input for all economic activities.
2. Capital can be helpful in improving other factors of production.

Question 2.
(a) What is meant by Cross elasticity of demand? [2]
(b) Mention any two factors that cause a rightward shift of the demand curve. [2]
(c) Distinguish between Normal goods and Inferior goods. [2]
(d) Draw a perfectly elastic supply curve. [2]
(e) Distinguish between Redeemable debt and irredeemable debt. [2]
Answers:
(a) In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good.

(b)

1. Increase in income (normal good)
2. Increase in expected future goods

(c)

Basis	Normal Goods	Inferior Goods
Definition	The goods whose demand increase with an increse in income.	The goods whose demand decreases with an increase in income.
Income/ Price Effect	Income effect is positive where as price effect is negative in case of inferior goods.	Both income and price effect is negative in case of normal goods.
Relation	There is direct relation between income and demand for normal goods.	There is an inverse relation between income and demand for inferior goods.

(d)

(e)

1. Redeemable public debt : Redeemable public debt is the debt that the Government promises to pay off at some predetermined future date. The Government regularly pays interest on this debt. The principal amount is paid back on the expiry of the due date. Therefore, in case of redeemable debt, the Government has to make arrangement for its repayment. Public debts are normally redeemable.
2. Irredeemable public debt : Irredeemable public debt is that debt the principal amount of which is never returned. The Government does not make any promise to pay it off at some future date. However, the Government continues to pay interest on it regularly. Such type of public debt is rare.

Question 3.
(a) Define creeping inflation. [2]
(b) Direct taxes are progressive in nature. Briefly explain. [2]
(c) Define efficiency of labour. [2]
(d) State any two demerits of Barter system of exchange. [2]
(e) Mention two differences between the Central bank and Commercial Bank. [2]
Answers:
(a)

1. A moderate annual increase in the price level is called creeping inflation.
2. Under this situation the rise in price level is at very slow rate over a period of time. But it is difficult to quantify. lt is also called Mild inflation.

(b) Direct tax are progressive in nature because there are levied as per the income slab. They are directly proportional to the income of an individual i.e higher the income higher the tax.
(c) An inherent ability of labour to perform the task allotted in the process of production.
(d)

1. Problem of double coincidence of want i.e both buyer and seller should be ready to exchange the goods.
2. Lack of common measure of value.

(e)

Central Bank	Commercial Bank
(i) Central Bank functions as the apex bank of the country.	(i) Commercial banks func­tions according to the rules and regulations stipulated by the central bank.
(ii)The central bank designs and controls all instruments of monetary policy of the country.	(ii) Commercial banks only executes the monetary policy as directed by the central bank.

Question 4.
(a) Explain briefly two differences between Recurring deposits and Fixed deposits. [2]
(b) What is meant by open market operation? How does it influence money supply? [2]
(c) Mention two causes of Consumer Exploitation. [2]
(d) WhatismeantbyRTl? [2]
(e) Distinguish between Fixed and Circulating capital quoting suitable examples. [2]
Answers:
(a)

1. Fixed or time deposit account : Cash is deposited in this account for a fixed time period. They are not payable on demand and do not enjoy chequing facilities.
2. Recurring deposit account : Under this account a specialised amount is deposited every month for specified period say 12, 24, 36, or 60 months.

(b)

1. Buying and selling of government securities in the market is known as open market operations.
2. Open market operations have an impact on the lending capacity of the banks.
3. It is an important mean of a controlling the money supply.
4. During inflation or excess demand situation the main motive of the Central Bank is to reduce the money
   supply. To suck excess liquidity from the market the Central Bank sells bonds, government securities and treasury bills.
5. Due to low money supply there is fall in the volume of investment, income and employment resulting in lower demand.
6. During deflation the main motive of the Central bank is to increase the money supply and to increase the money supply the Central Bank buys bonds, government securities and treasury bills.

(c)

1. Limited information: In the absence of information about different aspects of the products namely price, quality, composition, conditions of use, terms of purchase, etc; the consumers are liable to make a wrong choice and lose money.
2. Wrong information: Companies spend a considerable amount on advertisements alone to attract consumers and feed information they want the consumer to know but not the information the consumer wants about the products.

(d) RTI is Right to Information Act which empower citizens to find out what is happening in government. The citizens have the right to seek any information from any public office.

(e)

(i) Fixed capital : Fixed capital needs relate to the investments that the business is required to make in purchasing real estate, i.e., land, buildings, stores, plant and machinery, interest during the period of construction of these assets etc. It is used in producing commodities continuously and for years. These are mostly long term needs of the industry. They may involve development capital, expansion and improvement capital and fixed working capital.

This capital is permanently invested in business and cannot be taken back at will without dissolution of the business. The amount of fixed capital required by a business would depend upon the nature of industry, scale of operations, the technique and method of handling production and the extent to which one or more of the activities are pursued. It is also affected by the mode of acquiring fixed assets i.e., outright purchase or obtaining them on hire- purchase or instalment payment.

(ii) Working capital: Money required by a company to meet out day-to-day expenses, to finance production and stocks, to pay wages and other production expenses, etc., is called the working capital of the company. Working capital requirements are ordinarily changing in its nature and form. Working capital is used in operating the business. It is mostly kept in circulation by realising it back after selling the products and reinvesting it in further production. It is because of this regular cycle that the working capital requirements are usually for short periods.

Section – B (40 Marks)
(Attempt any FOUR Questions)

Question 5.
(a) Define Division of labour. Explain three benefits of Division of labour to producers. [5]
(b) Define capital formation. Explain three causes of low capital formation in a developing economy. [5]
Answers :
(a) Division of labour implies the arrangement of labour power in such a way so as to maximize the amount and quality of the output.

Benefits:

1. Increase in efficiency: Division of labour increases the efficiency of a worker.
2. Improvement in quality: Due to increase in efficiency as a result of specialization, the quality of output also increases.
3. Optimum use of work force: Specialisation permits the optimum use of human as well as non human resources.

(b) Capital formation refers to net additions of capital stock such as equipment, buildings and other intermediate goods. A nation uses capital stock in combination with labour to provide services and produce goods; an increase in this capital stock is known as capital formation.

1. Low productivity: Per capita incomes are low in less- developed countries because of low productivity of human and non-human resources. There are various causes of low productivity in agriculture, industry and services.
2. Predominance of agriculture: Agriculture employs a very large proportion of the labour force in LDCs. Agriculture also accounts for a major share of the total output of goods and services.
3. Extremely uneven income distribution: In many LDCs, income is extremely unevenly distributed. A few people are extremely rich, while the vast majority lives in abject poverty.

Question 6.
(a) Mention five qualities of a good entrepreneur. [5]
(b) Differentiate between Decrease in demand and Contraction of demand. [5]
Answers:
(a)

1. He should have an optimistic outlook.
2. He should know how to handle human resources.
3. He should be creative.
4. He should have ability to plan.
5. He should have marketing skills.

(b)

Basis	Contraction in Demand or Decrease in Quantity Demanded	Decrease in Demand
Meaning	When the quantity demanded falls due to an increase in the rice, keeping other factors constant, it is known as contraction in demand.	When the demand falls due to an unfavourable change in the other factors, at the same price, it is known as decrease in demand.
Effect on Demand Curve	There is an upward movement (fig.) along the same demand curve.	There is a leftward shift (fig) in the demand curve.
Reason	It occurs due to an increase in the price of the given commodity.	It occurs due to an unfavourable change in the other factors like increase in the prices of complementary goods, decrease in income in case of normal goods, etc.

Question 7.
(a) What is meant by Shiji in supply? Explain three determinants of a lefiward shift of the supply curve? [5]
(b) Define Elasticity of demand. Explain briefly three determinants of elasticity of demand. [5]
Answer:
(a) When supply of a commodity changes due to change in any factor other than the price of the commodity.

Factors:

1. Use of outdated technology, causing a fall in efficiency and rise in cost of production.
2. Increase in factor price (like increase in price of raw material , wages etc) cause increase in cost of production.
3. Decrease in number of firms also decreases the market supply.

(b) The relative response of a change in quantity demanded to a change in price.

1. Availability of substitutes :

1. Demand for a commodity with large number of substitutes will be more elastic. The reason is that even a small rise in its prices will induce the buyers to buy the substitute.
2. For example tea and coffee are close substitutes and a minor rise in the price of tea will induce the consumers to switch over to coffee.
3. Thus, availability of close substitutes makes the demand sensitive to change in the prices. On the other hand, commodities with few or no substitutes like wheat and salt have less price elasticity of demand.

2. Income Level: Elasticity of demand is also affected by income level. It is generally less for higher income level groups as compared to people with low incomes. People falling under high income brackets are not influenced much by changes in the price of goods. But, poor people are highly affected by increase or decrease in the price of goods. As a result, demand for lower income group is highly elastic.

3. Price Level : Price level also affects the price elasticity of demand. The demand for high priced commodities is elastic. On the other hand the low priced goods is said to have inelastic demand. High priced commodities are luxurious goods and low priced goods are necessaries. Luxurious goods like LED TV, car, laptops, etc are mainly consumed by the people of high income brackets. However, demand for necessities like needle, match box, etc. is inelastic as change in prices of such goods do not change their demand by a considerable amount.

Question 8.
(a) What is meant by Public Expenditure? Explain three reasons for an increase in public expenditure in India. [5]
(b) Define a tax. Explain briefly three merits of a Direct tax. [5]
Answers:
(a) Public expenditure refers to the expenses incurred by public authorities for its own maintenance as also for the satisfaction of collective needs of the citizens or promoting their economic and social welfare.

1. Defence: An important factor responsible for increase in public expenditure is the large defence expenditure that the Government allocates to defend its country from the attack of other countries so as to maintain its sovereignty.
2. Population growth: Another important factor responsible for the increase in public expenditure is the growth in population. In India, the population has increased at an alarming rate. The population of India increased from 36 crores in 1951 to 102.7 crores in 2011.

(b) A tax is a compulsory charge or payment imposed by Government on individuals or corporations E.g. sales tax, excise tax etc.

Merits of Direct Taxes

1. Equitable : Direct taxes are based on the cannon of equity. Their burden is equitably distributed, as they are progressive in nature. As the income of a person increases, the rate of income tax also increases. So all direct taxes fall heavily on the people whose income and wealth increased. The poor are not affected by such taxes.

2. Certain : Direct tax satisfy the cannon of certainty. Tax payer is certain as to the time and manner of payment, and the amount of taxes to paid in the case of these taxes. Similarly, the government is also certain as to the amount of money it shall receive from these taxes.

3. Economical: These taxes also satisfy the cannon of economy. The cost of collection of direct taxes is low. In the case of income tax, it is deducted at the source from the salaried persons. The same officers can make the assessment of wealth, incomes, inheritances, gifts, etc. No separate staff is needed for each. Such taxes are also economical to the tax payers who make payment direct into the treasury.

Question 9.
(a) What is secondary functions of money? [5]
(b) What is meant by Cost push inflation ? Briefly explain thee of its determinants. [5]
Answers:
(a)

1. Store of value : In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value. If money could not be stored for some period of time and still remain valuable in exchange, it would not solve the double coincidence of wants problem and therefore would not be adopted as a medium of exchange. As a store of value, money is not unique; many other stores of value exist, such as land, works of art, and even baseball cards and stamps. Money may not even be
the best store of value because it depreciates with inflation. However, still money is used as store of value as :

1. It is more liquid than most other stores of value.
2. It is readily accepted everywhere.
3. It is easy and economical to store as its storage does not require much space.

2. Unit of account : Money also function as a unit of account, providing a common measure of the value of goods and services being exchanged. Knowing the value of price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase.

In the absence of common measure the seller has to express value of his good in all other goods. For example if you want to sell your horse you have to express its value.
1. Horse = 2 cows
1. Horse = 5 bags of wheat
1. Horse = 20 kg of iron

3. Standard of deferred payment

(i) Money is accepted as a standard of deferred payments because
(a) its price remains relatively stable compared to other commodities,
(b) it has the merit of general acceptability,
(c) it is more durable compared to other commodities. It is because of this function of money that there has been a significant expansion of trade.

(ii) Using money as a standard of deferred payments is a direct consequence of the unit of account and store of value functions of money.

(iii) Serving as a standard of deferred payments, money has stimulated the process of capital formation. It is because of this function of money that there has been a considerable growth of the money market as well as capital market.

(b) Cost-push inflation occurs when rise in price is due to rise in the cost of production. In this type of inflation, demand factor remains unchanged and supply factor plays an important role. Once this type of inflation sets in one industry, it spreads to all other industries of an economy. Main causes of cost-push inflation are:

1. Higher Wage Rates: Strong trade union ensures payment of higher wages. Due to this the producer shifts the burden of increase in cost to the consumer through price rise. An increase in price makes cost of living more expensive whereby again union demands more wages. Thus, it becomes never-ending wage price spiral.
2. Higher Profit Margin: Producers charge higher price to earn higher profit margin.
3. Higher Taxes: Sometimes, rise in the price of the commodity is due to increase in excise duties and other taxes imposed by the government. Due to this the producer raises the price.

Question 10.
(a) With reference to the Central Bank, explain the following. [5]

1. Monopoly of note issue
2. Lender of the last resort.

(b) ‘An alert consumer is a safe consumer ’. Give reason to support your answer. [5]
Answers :
(a)

1. Central bank of a country has the exclusive right of issuing notes or it is the only currency authority. It is the sole agency of note issuing in the country. Actually till the beginning of 20th century, the central bank was known as ‘Bank of Issue’. The notes issued by the central bank are an unlimited legal tender. Because of its sole currency authority, it has the following merits:
   • The central bank imparts uniformity to the monetary system.
   • People’s confidence in the currency of the country remains high, because the central bank enjoys the support of the Govt.
   • It implies a central check on the supply of money in the country.
   • It imparts elasticity to the monetary system.
   • It is a profitable business. When it is done by the central bank, the profit so earned goes to the state exchequer.
2. 1. The Central Bank acts as the lender of the last resort.
   2. When commercial banks fail to meet their financial requirements from other sources, they can approach the Central Bank which provide them loan and advances as lender of the last resort.
   3. The Central Bank provide this facility to protect the interest of the depositers and to prevent possible failure of the bank.
   4. The commercial banks can borrow on the basis of eligible securities.

(b) When we as a consumer become conscious of the rights, while purchasing various goods and services he will be able to discriminate and make right choices. This calls for acquiring the knowledge and skill to become a well informed consumer.

1. While purchasing the goods, consumer should look at the quality of the product, the marked price, guarantee or warrantee period.
2. Consumer should preferably purchase standardize products which contain of ISI or Agmark.
3. A Consumer should ask for a cash -memo and warrantee card.
4. Consumer must be aware of his rights and duties.
5. Consumer should form consumer awareness organizations, which can be given representation in various committees formed by the government and other bodies in the matters relating to the consumers.
6. He should know the method how to proceed if he is cheated.

Solving ICSE Class 10 Geography Previous Year Question Papers ICSE Class 10 Geography Question Paper 2022 Semester 2 is the best way to boost your preparation for the board exams.

ICSE Class 10 Geography Question Paper 2022 Solved Semester 2

Maximum Marks: 40
Time Allowed: 1½ hours

General Instructions:

• Answers to this Paper must be written on the paper provided separately.
• You will not be allowed to Write during the first 10 minutes.
• This time is to be spent in reading the question paper.
• The time given at the head of this Paper is the time allowed for writing the answers.
• Attempt all questions from Section-A and any three questions from Section-B.
• The marks intended for questions are given in brackets [ ].

Section-A
(Attempt all questions)

Question 1.
On the outline map of India provided mark and name the following: [10]
(i) Vindhya mountain
(ii) River Yamuna
(iii) Kolkata
(iv) Kanchenjunga
(v)Lake Chilka
(vi) Konkan coastal plain
(vii)Thar desert
(viii) Gulf of Khambhat
(ix) Mark with arrows the direction of N.E. Monsoon wind
(x) Mumbai High
(This map, (fused, must be fastened with all other answers).

Answer:

Section – B
(Attempt any three questions from this Section)

Question 2.
(i) (a) Give any one use of Copper. [2]
(b) Names two Indian states in which iron ore is found in abundance.
Answer:
(a)

• Copper is a good conductor of electricity so it is used in electrical industry.
• Copper is also a good conductor of heat so it is used for making cooking utensils.
• As it is ductile, therefore, it is used to make electric cables.

(b) Rajasthan and Madhya Pradesh.

(ii) With reference to Hirakud project answer the following: [2]
(a) On which river is it based ?
(b) Name an Indian State benefitted by Hirakud project.
Answer:
(a) Mahanadi
(b) Odisha

(iii) Give three disadvantages of using coal. [3]
Answer:

• Coal is a non-renewable source of energy. It took millions of years to form, and a finite amount of it exists on our planet.
• Burning coal for energy releases toxins and greenhouse gases, such as carbon dioxide. These have an immediate impact on the local air quality, and contribute to global warming.
• Surface mining permanently alters the landscape and the ecosystem.

(iv) (a) Mention two advantages of nuclear power. [3]
(b) What is the advantage of using solar energy in place of the conventional sources of energy?
Answer:
(a)

• Cost of production is less.
• Less pollution in comparison to thermal power plants.

(b)

• Renewable source of energy.
• No cost for the raw material.
• No pollution.
• Reduce the use of fossil fuels.

Question 3.
(i) Mention two problems faced by the agriculture sector of India. [2]
Answer:
(a) Overdependent on nature: Indian agriculture is mainly dependent on monsoons. If there is heavy rain it leads to floods and if there is less rain it leads to famine.

(b) Old technology and more pressure on land : Our farmers still use old implements. They are very poor and cannot afford modern technology and implements. Secondly 67% of our population is directly or indirectly dependent on agriculture.

(ii) (a) Mention any one climatic condition found suitable for growing cotton. [2]
(b) Name the State that is the leading producer ofcotton in India.
Answer:
(a) Temperature: More than 21°C of temperature.
Rainfall: 50-100 cm of annual rainfall.

(b) Gujarat.

(iii) With reference to Rice cultivation answer the following: [3]
(a) Name the soil found suitable for its growth.
(b) Name the State that is the largest producer of this crop in India.
(c) In which cropping season is it generally grown in India ?
Answer:
(a) Loamy and alluvial soil.
(b) West Bengal.
(c) Rainy season.

(iv) (a) Name the State that is the largest producer of sugarcane in India. [3]
(b) Why more than two ratoon crops are not advisable for sugarcane farmers ?
(c) What is Zayad cropping season ?
Answer:
(a) Uttar Pradesh.

(b)

1. Ratoons produce low quality crop as the canes are thinner with lower sucrose.
2. There is also high risk of pests and diseases.

(c) Besides rabi and kharif crops, the farmers also grow an extra crop in the summer months of April, May and June just after the rabi crops have been harvested. This is known as ‘Zaid’. The season of the crop is very short and mainly fruits and vegetables are grown.

Question 4.
(i) Differentiate between mineral based and agro based industry giving suitable example for each from India. [2]
Answer:

Agro based industries	Mineral based industries
1. These industries derive raw material from agriculture.	1. These industries derive their raw material from minerals.
2. They provide employment in rural areas.	2. They provide employment both in rural and urban area.
3. They mostly produce consumer goods.	3. These industries produce both consumer and value based goods.
4. Example : Sugar, jute, textile, vegetable oil.	4. Example : Iron and steel, engineering industry, ship building, machine tools.

(ii) Give two ways in which petro chemical industry is important for India. [2]
Answer:
(a) Petro chemicals are cost effective, economically stable, cheaper as these are produced on mass scale.
(b) Its raw material is easily available.

(iii) With reference to Tata steel plant answer the following: [3]
(a) Where is it located?
(b) From where does it get its coal requirements?
(c) From where does it get its iron ore requirements ?
Answer:
(a) Jharkhand.
(b) Jharia.
(c) Singhbhum.

(iv) (a) Name any two byproducts of the sugar industry. [3]
(b) Why are the cotton textile industries mostly located in the coastal areas?
Answer:
(a) Molasses and Bagasse.

(b)

• Humid climatic condition is best for the weaving of cotton.
• India imports long staple cotton and exports cotton products. So, coastal location is best for export and import.
• High humid climatic condition of coastal areas offers high demand for cotton products throughout the year.

Question 5.
(i) Mention two advantages of using roadways. [2]
Answer:

1. Needs less investment.
2. Maintenance cost is low.
3. Door to door service.

(ii) What is the purpose of developing the Golden Quadrilateral in India? [2]
Answer:

• It will help in expanding the market.
• It will help in transporting men and material in a short period of time.

(iii) Mention three disadvantages of waterways. [3]
Answer:

• Water transport as a whole is much slower than its foad, rails or air competitors.
• It provides access to limited areas.
• Many a time rivers are not perennial.

(iv) Give a reason for the following: [3]
(a) Railways are not well developed in the North Eastern States of India.
Answer:

• Because the large number of rivers needs the construction of bridges, which requires heavy expenditure.
• There are few railways in the flood plains, in the Himalayan region because of its ruggedness.

(b) Air transport has gained popularity in recent time in India.
Answer:

• Air transport is the fastest mode of transport and, therefore, suitable carriage of goods over a long distance requiring less time.
• Air transport is regarded as the only means of transport in those areas which are not easily accessible to other modes of transport.

(c) NSEW is helpful for India.
Answer:

• It will help in expanding the market.
• It will help in transporting men and material in a short period of time.

Question 6.
(i) Why is there a need for waste management in large metropolitan cities? [2]
Answer:
The amount of waste is increasing in the tune with the rapidly growing industrialisation and urbanisation.
(a) New kinds of wastes are growing every year as a result of new packing materials. Domestic waste is increasing in volume.
(b) E-waste is growing at alarming rates and there is no proper method to handle this waste.

(ii) Why is composting considered a safe method of waste disposal? [2]
Answer:

• It supplies essential elements needed by the plants.
• It helps reduce the adverse effects of excessive alkalinity, acidity or the excessive use of chemical fertilizer.

(iii) (a) Why should we reuse waste? [3]
(b) How can farm waste be made useful?
(c) How is dumping of waste harmful?
Answer:
(iii) (a)

• Waste can be reused by recycling. For example, old newspapers, magazines can be recycled and the paper produced can be reused.
• Reuse reduces the generation of waste.

(b)

• Farm waste can be converted into manure to increase the fertility of the soil.
• They can be used for the generation of biogas.

(c) Waste accumulation causes foul smell, increase in the temperature and increase in the number of rodents and flies.

(iv) Mention three ways to reduce waste generation at home. [3]
Answer:

1. Practice reduce, reuse and recycle (selling old products to reduce waste).
2. Convert biodegradable waste to manure.
3. Create biogas plant to reduce kitchen waste.

Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2014 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2014 Solved

[Section – I (40 Marks)]
(Attempt ALL Questions)

Question 1.
State whether the following statements are true or false. Give reasons.
(a) Briefly explain two methods that increase land productivity. [2]
(b) What is meant by price elasticity of demand? [2]
(c) Distinguish between sunk capital and floating capital. [2]
(d) Give two reasons for consumer exploitation in India. [2]
(e) Distinguish between an entrepreneur and an organiser. [2]
Answer:
(a) Methods to increase land productivity:

1. Farmers need to use high-yielding variety of seeds, adequate amount of chemicals or bio-fertilisers and pesticides, and improved agricultural implements such as power tillers or tractors. Thus, the scientific process of cultivation will help to increase the yield of crops per hectare.
2. The productivity of land is largely determined by its natural qualities. In agriculture, some properties of the soil would be more suitable for the cultivation of wheat than for the cultivation of rice. Farmers need to identify the soil suitable for crop cultivation. Thus, cultivation in suitable soil also increases land productivity.

(b) Price elasticity of demand :
Price elasticity of demand measures the responsiveness of quantity demanded for any good due to one percent change in the price of that good.
Percentage method to calculate the price elasticity of demand for good is as follows:
e_p = Percentage change in the demand for the good/ Percentage change in the price of the good.

(c) Sunk capital and floating capital:

1. Sunk capital is the one which can only be put to a single use. It is also known as specialised capital. It always remains in a fixed place. For example, a printing machine.
2. Floating capital is the capital which can be used in alternative lines of production. It is also called free capital. For example, steel, wood, raw materials etc.

(d) Two reasons for consumer exploitation in India:

1. Consumers buy a wide range of goods without making adequate initiative to know consumer rights.
2. Due to illiteracy, consumers may not challenge the quality and quantity of goods supplied by the seller, even the goods and services provided by them are not satisfactory.

Hence, consumers are exploited by providing false statements about the quality of the product and cheat consumers by falsely representing old goods as new goods in the market.

(e) Entrepreneur and organiser:

1. An entrepreneur is a person who carries the risk of business and coordinates the activities of all the other factors of production.
2. An organiser performs only the function of organisation but does not perform the other functions of an entrepreneur.

Question 2.
(a) State two factors affecting the market demand of a commodity. [2]
(b) Mention two factors that determine the supply of labour. [2]
(c) What is meant by demand pull inflation? [2]
(d) Progressive taxation is suitable for the Indian economy. Give reasons to support your answer. [2]
(e) Distinguish between a tax and a fee. [2]
Answer:
(a) Two factors affecting the market demand of a commodity:

1. Pattern of income distribution: If the income distribution moves in favour of the poor people, the demand for commodities would increase among those people. On the other hand, if most of the national income is concentrated with rich people, the demand for luxury goods would increase among those people. So, the pattern of income distribution affects the market demand of a commodity.
2. Climatic condition : During the winter season, the demand for woollen clothes increases. During the summer season, the demand for cotton clothes increases.
   Hence, the climatic condition affects the market demand of a commodity.

(b) Factors determining the supply of labour:

1. Population: The most important factor affecting the supply of labour in a country is its population. A larger population with necessary skills to perform physical or mental work will increase supply of labour to the market.
2. Age structure: The total population of an economy is not considered supply of labour. Supply of labour depends on the age structure of the population. Legally, age is determined to work and not work. Child labour is prohibited by law. Salaried people have to retire after attaining a certain age. Hence, only a certain age group of people is considered supply of people.

(c) Demand pull inflation means an inflation generated by the pressure of excess demand in the economy. If there is an excess of aggregate demand over aggregate supply, the general price level will tend to increase, which leads to inflation in the economy.

(d) A tax is said to be progressive when the rate of tax increases with the increase in tax-payer’s income. Under this system, the tax liability increases not only in absolute terms but the proportion of income tax also increases. Rich people pay higher average income tax than the poor people. Hence, it reduces the income inequalities among the rich and poor groups of people.

(e) Differences between tax and fee:

1. A fee is imposed for a specific reason. For instance, the school management imposes a fee for school admission of a student. Tax has no specific reason. Sales tax is imposed on a commodity without stating any special benefit on purchase of a commodity.
2. A fee is not a compulsory payment towards the Government. There will not be any legal punishment against the non-payment of a fee. For example, if the admission fee is not paid, then the student will not be admitted into school. Tax is a compulsory payment made by people to the Government.

Question 3.
(a) Give two reasons for an increase in public expenditure in recent times. [2]
(b) Distinguish between limited legal tender and unlimited legal tender. [2]
(c) Define simple division of labour. [2]
(d) Give the full form of COPRA. How does it benefit consumers? [2]
(e) Discuss any two contingent functions of money. [2]
Answer:
(a) Two reasons for an increase in public expenditure in modern days:

1. Public expenditure tends to increase with the expansion of administrative machinery, maximising social and economic welfare, providing salary and other benefits such as old-age pension, sickness benefits, accident benefits, free education to industrial workers etc.
2. Public expenditure tends to increase with the huge interest payments on market borrowings.

(b) Limited legal tender and unlimited legal tender:

1. The rupee notes of higher denominations are considered unlimited legal tender because they can be used for settling claims relating to high-value transactions. For example, 100/500/rupee notes.
2. Coins of smaller denominations are considered limited legal tender because they are acceptable only for meeting financial transactions of lower value. For example, 1/2/5 rupee coins for satisfying the smaller requirement.

(c) Labour specialising in the production of a particular good or service is called simple division of labour. Division of labour increases the efficiency of labour in productivity.

(d) COPRA – Consumer Protection Act, 1986. Consumer grievances and complaints against traders are checked at three levels. They are National Consumer Commission at the national level, State Consumer Commission at the state level and District Forum at the district level. They provide relief and compensation to affected consumers. Currently, there are more than 500 district courts functioning in the three-tier system of India.

(e) Two contingent functions of money :

1. Assisting production decisions: The main objective of any producer is to maximise their profit. So, producers have to decide the amount of factors of production to be used in production. They have to make factor payments to those factors of production in terms of money. Thus, the money-prices of those factors help the producer to take necessary decisions.
2. Assisting consumption decisions : The main objective of any consumer is to satisfy their wants through the consumption of goods. However, the consumption of the consumer depends on the income level and money-prices of the commodities in the market. Thus, the income of the consumer and money-prices of the commodities influence the

Question 4.
(a) Explain the function of the central bank as a ‘Banker ‘to the government. [2]
(b) Mention any two sources of external debt. [2]
(c) State two dijjerences between tax on income and tax on commodity. [2]
(d) Draw a supply curve. [2]
(e) Briefly explain any one exception to the law of demand. [2]
Answer:
(a) The central bank acts as a ‘Banker’ to the Government and it performs the following functions:

1. It receives deposits from the Government and collects cheques and drafts deposited in the government account.
2. It makes purchases and sales of government securities.
3. It provides cash to the Government as required for payment of salaries and wages to their staff and other disbursements.
4. It makes payments on behalf of the Government.

(b) International Monetary Fund and World Bank are the two sources of external debt.

(c) Differences between tax on income and tax on commodity:

1. A tax on income is paid directly to the Government by the person to whom it is imposed. Hence, the tax on income is known as direct tax. It cannot be shifted on to any other person. According to the ability of the tax-payers, these taxes are levied.
2.  A tax on commodity is paid to the Government by one person, but the tax burden is borne by another person. Hence, the tax on commodity is known as indirect tax. It can be shifted on to the other person. Ability of the taxpayers is assessed indirectly in this taxation.

(d) Supply curve

(e) The bandwagon effect is an exception to the law of demand. The consumer’s demand for a commodity gets influenced by the taste and preference of the social class to which the consumer belongs. If a businessman prefers to play golf as a fashionable game among successful businessman, then the price of a golf ball increases in the market. Here, the businessman may increase the demand for golf balls in order to show that he is a successful businessman.

Section – II (40 Marks)
(Attempt any FOUR Questions)

Question 5
(a) Define land. Explain four characteristics of land as a factor of production. [5]
(b) Define efficiency of labour. Explain four factors that influence the efficiency of labour. [5]
Answer:
(a) Land is defined to include not only the surface of the Earth but also all the other gifts of nature.
Four characteristics of land :

1. Land is limited in supply: Supply of land is fixed as it is given by nature.
2. Gifts of nature: Land is a gift of nature which does not have any cost of production. Land is readily available for any use. However, other agents of production are available at a cost.
3. Primary factor of production: Land is a basic factor of production because it cannot produce anything by itself.
4. Land has alternative uses: Land can be used for alternative uses such as cultivation, dairy or poultry-farming, rearing of livestock, building of houses, play ground etc.

(b) Efficiency of labour means the productive capacity of a worker. It indicates the ability of the worker to do more work or better work during a given period of time.
Factors influencing the efficiency of labour:

1. Ability and willingness of the workers to work and to learn skills depend on the health of a worker and therefore on the wage rate and the standard of living. The improvement in standard of living leads to an improvement in health through better nourishment. It also depends on the average age of any labour.
2. Literacy is perhaps the first priority to improve the efficiency of labour. Adequate provisions for imparting training to the workers will improve the efficiency of labour.
3. Climatic differences affect the efficiency of labour in production. The hot and humid climate of most of the states of India is a factor which deprives the people to work hard and the ability to display high efficiency.
4. A healthy and conducive work environment increases the level of efficiency. The facilities available in the work place determine the labour efficiency to a great extent.

Question 6
(a) Define capital formation. Explain three important stages of capital formation. [5]
(b) Draw a demand curve with the help of a hypothetical individual demand schedule. [5]
Answer:
(a) Capital formation :
Capital formation means the creation of capital. A change in the stock of any capital during a particular period of time is called capital formation.

Three important stages of capital formation :

1. Creation of savings : Savings are transformed into capital. If an individual does not save money, then there cannot be any capital formation, even other conditions are favourable for capital formation.
2. Mobilisation of savings: Although with a high level of income, if a person holds savings in the form of cash instead of depositing in the bank, then the savings cannot be mobilised for investment. Hence, the savings must be mobilised from the savers. These functions are performed by financial and other institutions as well as the capital markets.
3. Investment mobilised savings: The mobilised savings must be actually used by producers for investment. Money kept by the people in the banks must be lent out by the banks to producers for business investment such as purchase of machinery, raw materials etc.

(b) Individual demand schedule and the demand curve are given below:

Price	Quantity
5	1
10	2
15	3
20	4
25	5

Question 7
(a) Define supply. Explain three reasons for the rightward shift of the supply curve. [5]
(b) Define public debt. Explain four types of public debt. [5]
Answer:
(a) Supply:

The supply of a commodity is defined as the quantity of the commodity which the producers desire to sell to consumers. Thus, the supply is a desired flow. It indicates how much firms are willing to sell per period of time and not how much they actually sell.

Three reasons for the rightward shift of the supply curve:

1. Price of the product : When there is an increase in the price of the product and if it is more than the marginal cost of production, it enables the firm to earn excess profit by selling at a higher price. So, there is an increase in the supply of product which causes a rightward shift of the supply curve.
2. Technological condition: Technological progress creates positive approach in the supply of a particular product. It decreases the cost per unit and increases the productivity of given factor inputs of production. This leads to making the production of a particular good more profitable. So, there is an increase in the supply of product which causes a rightward shift of the supply curve.
3. Law of diminishing marginal utility: According to this law, as more units of the variable factor are employed, the addition made to total production falls, i.e. the cost of production increases. Thus, more quantity is supplied only at a higher price in order to cover the rise in cost of production.

(b) When planned expenditure of the Government exceeds the total revenue of the Government, then the Government needs to borrow money from individuals and organisations. This is called public debt.

Four types of public debt:

(i) Internal and external debt : Internal debt means government borrowings within the country. Individuals, banks, business firms and others are the various internal sources from which the Government borrows. The various instruments of internal debt include market loans, bonds, treasury bills, ways and means advances etc. Over the years, the internal debt of the Central Government has increased from ₹ 1,54,004 crore in 1990-91 to ₹ 23,37,682 crore in 2009-10.

External debt means the government borrowings from abroad. The external debts are multilateral borrowings, bilateral borrowings, loans from World Bank, Asian Development Bank etc. for various developmental programmes. Over the years, the external debt of the Central Government has increased from ₹ 31,525 crore in 1990-91 to ₹ 1,39,581 crore in 2009-10.

(ii) Productive and unproductive debt:
A debt is called productive if the loan is financed for the projects which bring revenue to the Government; for example, irrigation, power projects etc. The productive debts are self-liquidating in nature; this means the principal amount and interest are normally paid out of the revenue generated from the projects to which the loans were used.

A debt is called unproductive if the loan is financed for war and other relief operations in case of emergency. Unproductive public loans are a net burden on the community. The Government will have to resort to additional taxation for their servicing and repayment.

(iii) Redeemable and irredeemable debt: A redeemable debt is one the Government repays after a fixed period of time. When the Government borrows money from the public, they sell securities to the public. They pay the interest at regular intervals. When the debt matures, the public surrenders the security to the Government and receives the principal along with the interest amount anything due to them. Banks and other institutions are the holders of government securities.

Irredeemable debts are the loans for which no promise is made by the Government regarding their exact date of repayment. Such debt has no maturity period. The Government may pay interest regularly. Normally, the Government does not resort to such borrowings.

(iv) Convertible and Inconvertible debt : The Government takes a loan for a specified time period at a specified interest rate, but if after some time, the Government notices that there has been a fall in the market interest rate, it converts the old loan into a new loan at the lower interest rate, called a convertible loan. If it cannot be converted, it is called an inconvertible loan.

Question 8.
(a) Define a commercial bank. How do commercial banks mobilise deposits from the public. [5]
(b) Explain five advantages of division of labour. [5]
Answer:
(a) A commercial bank is defined as a financial institution which provides services such as accepting deposits, giving business loans, mortgage lending and basic investment products such as savings account and certificates of deposit.

A commercial bank mobilises deposits from the public by accepting the following deposits:

1. Fixed deposits are accepted for a specific period of time which carries interest at relatively high rates. According to the maturity period, the rate of interest varies. If the deposited money is withdrawn before the expiry of the specified period, the interest will not be paid.
2. Demand deposits are those deposits which can be withdrawn at any time by the depositors by cheque. It has no interest rate.
3. Savings deposits are those deposits on the withdrawal of which a bank places certain restrictions. Cheque facility is provided to the depositors. It is generally held by households who have idle cash for a short period.
4. Recurring deposits are those deposits under which the account money is deposited in monthly instalments for a fixed period of time. It carries a high rate of interest.

(b) Five advantages of division of labour :

1. Increases the efficiency of labour :
   The worker becomes more specialised if a worker is entrusted with only a part of work in the process
   of production. Increase in the efficiency of labour leads to an increase in the quantity and quality of production. It also enables the producer to produce goods at a low cost of production.
2. Rise in profits :
   Increase in the quantity and improvement in the quality of output are important aspects of division of labour. It brings greater profit to the producer in the market.
3. Large-scale production:
   Large-scale production is feasible with the division of labour. A manufacturing company with a reasonable number of workers can produce more through division of labour.
4. Lower prices of outputs :
   Due to division of labour, reduced average costs of the products will lead to reduced prices of the outputs in the market. Hence, consumers are benefitted.
5. Rise in national income :
   Due to division of labour, there is a rise in the volume of production of goods which lead to an increase in the total value of all goods and services. The national income also increases with the increase in the national product.

Question 9.
(a) Define inflation. Explain four causes of inflation. [5]
(b) What is meant by quantitative credit control? [5]
Answer:
(a) Inflation is defined as a sustained increase in the aggregate price level. It refers to a state of rising prices and not a state of high prices.

Four causes of inflation are as follows:

1. Public expenditure increases: Spending by the Government is an important part of total spending in any modem economy. It is a total spending which determines a total demand. Thus, government expenditure is an important determinant of aggregate demand. In the less-developed countries, government expenditure has shown an upward trend. In the beginning of the planning period in India, the amount of government spending has increased by leaps and bounds. This has created an inflationary situation in the economy.
2. Hoarding: Excess demand is artificially created by hoarders. They stockpile the goods and do not release to the market for sale. It leads to excess demand and inflation in the economy.
3. Genuine shortages: Sometimes, the shortages may not be artificial but genuine. Due to some reason, the factors of production are limited in supply and production is affected. Because supply is less than demand, prices rise.
4. Population growth : Growth of population will increase the total demand in the market. If the supply of goods and services does not keep pace with demand, the pressure of excess demand will create inflation.

(b) Quantitative credit control is a measure used by the central bank to influence the total volume of credit in the banking system. The quantitative credit controls are as follows:

(i) Bank rate policy : Bank rate policy is used as the main instrument of monetary control during the period of inflation. When the central bank raises the bank rate, it is said to have adopted a dear money policy. The increase in bank rate increases the cost of borrowing which reduces commercial banks borrowing from the central bank. Consequently, the flow of money from commercial banks to the public gets reduced. Therefore, inflation is controlled to the extent it is caused by bank credit.

(ii) Cash reserve ratio (CRR): When controlling inflation, the central bank raises the CRR which reduces the lending capacity of commercial banks; consequently, the flow of money from commercial banks to the public decreases. In this process, it halts the rise in prices to the extent it is caused by bank credits to the public.

(iii) Open market operations: Open market operations refer to the sale and purchase of government securities and bonds by the central bank. When controlling inflation, the central bank sells government securities to the public through the banks. This results in the transfer of a part of bank deposits to the central bank account and reduces credit creation capacity of commercial banks.

Question 10.
(a) Explain five ways in which consumers are exploited in India. [5]
(b) With the help of suitable diagrams explain the following degrees of elasticity of supply. [5]
E_p = ∞
E_p > 1
Answer:
(a) Consumers are exploited in the following five ways:

1. Sale of adulterated goods, i.e. adding something inferior to the product being sold.
2. Sale of sub-standard goods, i.e. sale of goods which do not confirm to prescribed quality standards.
3. Use of false weights and measures leading to underweight.
4. Supply of defective goods.
5. Misleading advertisements, i.e. advertisements falsely claiming a product or service to be of superior quality, grade or standard.

(b) Degree of elasticity of supply:

(i) E_p = ∞
Supply is said to be infinite when E_p = ∞. Infinite elasticity of supply refers to a horizontal straight line supply curve which shows infinite supply corresponding to a particular price of the commodity. Figure (a) shows that quantity supplied is infinite when the price of the commodity is OS. It reduces to zero even when price is slightly reduced.

(ii) E_p > 1
Supply is said to be elastic when E_p > 1. Elastic supply refers to a straight line, positively sloped supply curve from the Y-axis irrespective of the angle it makes. Figure (b) shows that quantity supplied is elastic, i.e., an increase in the price of the commodity from OP will lead to extension of supply.

Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2013 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2013 Solved

Section – I (40 Marks)
(Attempt ALL Questions)

Question 1.
(a) State two advantages of opening a bank account. [2]
(b) What is the difference between impact of taxation and incidence of taxation ? [2]
(c) Define cost-puch inflation. State two factors causing it. [2]
(d) The bus fare between two cities is reduced. How will this affect the demand curve for bus travel between the two cities? [2]
(e) Distinguish between Real capital and Debt capital with the help of suitable examples. [2]
Answer:
(a) Two advantages of opening a bank account are:

1. One can keep his savings safe and risk free through a bank account.
2. A bank account encourages the habit of saving.
3. Bank account helps in making payments.
4. Bank account helps in smooth transactions.
5. Bank account holders get a safe deposit locker.

(b)

Impact of Taxation	Incidence of Taxation
When the Government of any country imposes a tax, then the person or institution which bears the tax burden at the first instance is known as the impact of tax.	If the tax payer can shift the burden of tax, then the final resting point of the tax burden is called the incidence of tax.

(c) The prices, instead of being pulled up by demand factors may also be pushed up as a result of rise in the cost of production such as wages, profits or raw material costs. The increased price of factors of production leads to decreased supply of these goods. This is called cost push inflation.
Two factors causing cost-push inflation are:

1. Rise in wages.
2. Increase in the price of basic raw materials.

(d) The bus fare between two cities is reduce, so the demand for bus travel will rise and the demand curve will move downward.

(e)

Real Capital	Debt Capital
Real capital refers to those assets which help in the production process such as machines, buildings, etc.	Debt capital is the capital invested in shares, stock, debentures, government securities etc. which yield income to their investors.

Question 3.
(a) Mention two causes of low efficiency of labour in India. [2]
(b) Mention any two forms of consumer exploitation. [2]
(c) Define Public debt. [2]
(d) Indirect taxes are regressive in nature. How can they be made progressive ? [2]
(e) Distinguish between demand deposits and fixed deposits. [2]
Answer:
(a) Two causes of low efficiency of labour in India are :

1. Climate : India is a sub-tropical country and its climate is hot. This is the most important natural cause of low efficiency of labour in India.
2. Low wages : The wages of labour in general are low and so is the standard of living. Indian workers are poorly fed. As they are unable to keep themselves physically and mentally fit.

(b) Two forms of consumer exploitation are :

1. Under weight and under measurement: The goods being sold in the market are sometimes not measured or weighed correctly.
2. Sub-standard quality: The goods sold are sometimes of sub-standard quality. Selling of medicine beyond their expiry dates and supply of defective home appliances are the regular grievances of consumers.

(c) Public debt refers to the loans raised by a Government within or outside the country. The Government has to pay interest and repay the principal amount to the public.

(d) Indirect taxes or taxes on necessaries are regressive in nature because they take away a larger proportion of lower income as compared to higher income. Therefore, regressive taxes are unjust in nature.
They can be made progressive by reducing the rate of indirect taxes on necessary items like food, clothes, shelter etc.

(e)

Demand Deposits	Fixed Deposits
1. The rate of interest is nil on demand deposits. 2. The demand deposit account holder gets the facility of overdraft.	1. These deposits get the highest rate of interest. 2. They do not get such facility.

Question 4.
(a) Indicate the degree of elasticity of a supply curve parallel to the x-axis. [2]
(b) Distinguish between Creeping inflation and Running inflation. [2]
(c) How does money act as a standard of deferred payment? [2]
(d) Briefly explain the importance of public expenditure in the industrial development of developing countries. [2]
(e) Distinguish between Statutory Liquidity Ratio and Cash Reserve Ratio. [2]
Answer:
(a) If there is an infinite change in quantity supplied in response to a small change in price, the supply of that commodity is said to be perfectly elastic (i.e., C_s = ∞)

(b)

Creeping Inflation	Running Inflation
When the rise in prices is very slow like of a snail or creeper, it is called creeping inflation. It occurs when the price level increases at a mild rate, say around 2 to 3 per cent per year.	When a price level rises at a faster rate and is generally around 10 per cent per annum, it is called running inflation. Running inflation is a warning signal indicating the need for controlling it.

(c) Money acts as a standard of deferred payment. It means payment to be made in future can be expressed in terms of money. Money is accepted as a standard of deferred payment because it has a general acceptability and it can be expressed in definite and standardised units.

(d) Public expenditure on the establishment of heavy and basic goods industries in the developing countries increases the growth rate of the economy. By constructing the infrastructure of the economy, the economic development of the economy can be accelerated.

(e)

Statutory Liquidity Ratio	Cash Reserve Ratio
1. It can be in the form of cash, precious metals or securities. 2.  It controls the credit growth in the economy.	1. It can only be in the form of cash. 2. It controls the liquidity in the economy.

Section – II (40 Marks)
(Attempt any FOUR Questions)

Question 5.
(a) What is meant by increase in demand ? Discuss any four factors affecting price elasticity of demand. [5]
(b) Define land. Explain the importance of land as a factor of production. [5]
Answer:
(a) Increase in demand refers to a situation when there is more demand at the same price of the same commodity. Factors affecting price elasticity of demand are :

1. Nature of commodity : Luxury or comfort goods are more elastic than necessity goods, for example demand for wheat, rice, sugar will remain practically the same with price changes, whereas demand for cars, fridge and AC’s is more responsive to price changes.
2. Availability of substitutes: Commodities for which other substitutes are available in the market have more elastic demand as compared to commodities without proper substitutes.
3. Time period : Longer the time period, greater is the elasticity of demand and vice-versa. This is because in the long run, consumers can adjust their consumption habits in favour of cheaper substitutes, which may become available over time.
4. Durability of goods : Demand for most durable goods are elastic but that for most non- durable goods are relatively inelastic.

(b) The term “Land” generally refers to the surface of land. But in economics, it includes all the free gifts of nature called natural resources for example mineral resources, mountains, rivers, lakes, forests, wind, climate, sunshine, rainfall etc.
Land is an important factor of production in spite of the factor that land is a passive factor of production. Importance of land becomes evident from the following facts :

1. Promoting agricultural development : The agricultural development of a country largely depends upon the quantity and quality of land. Availability of fertile soil with abundant supply of water for irrigation purposes provides favourable conditions for agricultural development.
2. Promoting industrial development : Mineral resources like iron ore, aluminium, copper, uranium etc. provide the basic raw material for the development of industries. It also provides site for the construction of factory buildings and industries.
3. Generations of electricity : Rich resources of coal, petroleum, water, wind are an important source for the generation of electricity. These natural resources are the source of both hydel and thermal electricity.
4. Source of transport : All the important modes of transport i.e., roadways, railways, waterways and airways are based on the surface of land, rivers, oceans and air, which are all constituents of land.

Question 6.
(a) Define supply. State the law of supply and explain it with the help of a diagram. [5]
(b) Define a consumer. Explain the importance of educating consumers of their rights. [5]
Answer:
(a) Supply of a commodity refers to the quantity of that commodity which a seller is willing to sell corresponding to a given price. Law of supply expresses the functional relationship between price of the commodity and the quantity of the commodity supplied. It states that—‘Other things remaining the same (CETERIS PARIBUS), if the price of the commodity falls the quantity supplied of it also falls and if price rises, quantity supplied of it also rises.’ Thus, there is a positive relationship between price of a commodity and its quantity supplied. Law of supply indicates only the ‘direction’ of change and not the ‘magnitude’ of change in supply, in response to change in price.

Price of rice (₹ per kg)	Quantity supplied (kg)
20	5
25	10
30	15

(b) An individual who buys products or services for personal use and not for manufacturer or resale is called a consumer. He uses services which are availed of with the approval of one who hires the services.
Consumer education is a right of every individual. It is in fact, one of the eight basic rights consumers have recognised internationally. Consumers must be aware of the rights they enjoy against the loss they suffer on account of goods and services purchased by them. It should be incorporated in school curriculums and in educational programmes for lifelong learning.

1. If the consumer is educated and knows his rights, it will not be possible for the business to exploit him.
2. The businesses will be forced to provide good service and goods to the consumer. benefitting society as a whole.
3. It provides feedback for the business to constantly improve upon its products to give maximum satisfaction to the consumers.

Question 7.
(a) Name the institution that enjoys the monopoly of note issue in India. Briefly explain two qualitative methods of credit control adopted by this institution. [5]
(b) Define labour. Explain four important characteristic features of labour. [5]
Answer:
(a) Reserve Bank of India enjoys the monopoly of note issue in India.
The instruments used under the qualitative methods of credit control are :

1. Margin requirements: Margin requirements refers to the difference between the amount of loan and the market value of the security offered by the borrower. By changing the margin requirement, the Central Bank can effect the amount of loans. High margin requirements discourage speculative activities and vice-versa.
2. Moral suasion : It is the method of persuasion, request, informal suggestion and advice to the commercial banks by the Central Bank. Central Bank convenes the meeting of the heads of the commercial banks and explains to them the need for adoption of a particular monetary policy and appeals to them to follow this policy.

(b) Labour refers to the human effort, both physical and mental, with a view to earn income. Characteristics of labour as a factor of production are as follows :

1. Labour is Perishable : If a worker does not work on a particular day, his labour for that day is wasted. Labour is, thus, perishable. Labour cannot be stored. The labourer has to sell his labour immediately irrespective of the prices (i.e„ wages) paid to him.
2. Labour is an Active Factor of Production: Land and Capital are passive factors, but labour is an active factor of production. Without labour, other factors of production viz., land and capital cannot produce anything.
3. Labour sells his labour, not himself: The labourer does not sell himself, he sells his labour only. A labourer may or may not agree to do work. He remains quite independent while doing his task.
4. Labour in Mobile : Labour alone is a factor which is mobile. It can move from one place to another and also from one occupation to another. Other factors of production such as land lacks mobility.

Question 8.
(a) What is meant by food adulteration ? Give an example. Mention two harmful effects of food adulteration. Name any one measure formulated to prevent the problem of food adulteration in India. [5]
(b) Explain two methods adopted by Commercial Banks to advance loans to the general public. [5]
Answer:
(a) Food adulteration is the act of intentionally debasing the quality of food offered for sale either by substitution of inferior substances or by the removal of some valuable ingredients.
Example : Addition of melamine into milk, addition of Vanaspati into Ghee, Honey is adulterated with other sugar, brick powder in chilly powder.

Harmful effects of food adulteration are :

1. Food adulteration reduces the quality of the food and this weakens the health of the one whp consumes them, thereby increasing the cost of health care.
2. It can also cause heart diseases, loss of eye-sight or tumour.
   Measure to prevent the problem of food adulteration in India:
   “Prevention of Food Adulteration Act, 1954 was drafted for this purpose by Ministry of Health and Family Welfare in India”.

(b) Lending is the second primary function of the Commercial Banks. There are various ways by which banks advancing loans to the general public. Bank charges interest from the borrowers.

1. Cash credit : The entire sanctioned amount of loan by the bank is not given to the borrowers at particular time. The borrower is allowed to withdraw the sanctioned amount as and when he requires money. Interest is charged only on the actual amount withdrawn from the bank.
2. Overdraft : The customer is allowed to overdraw his current account balance. The customer can draw cheques in excess of the balance standing in his deposit to the extent of the overdraft amount. The bank charges interest only on the amount overdrawn. For a businessman, the overdraft facility is the easiest and the most convenient method of borrowing from banks.

Question 9.
(a) Why is the income of an entrepreneur residual in nature? Discuss any three functions of an entrepreneur. [5]
(b) Distinguish between [5]
(i) Voluntary debt and Compulsory debt.
(ii) Regressive tax and Degressive tax.
Answer:
(a) There are four factors of production, land, labour, capital and enterprise. Factors of production namely land, labour, capital are separately owned and are available at different places. Thus, there should be somebody who can bring these factors of production together at work place, combine them in right proportions and make them together for production.

The entrepreneur undertakes the responsibility to distribute proper remuneration to each factor of production, i.e., rent to landlord, wages to labourers and interest to capitalist and rest of the income is the reward of an organisation which is called ‘profit’.

Three functions of an entrepreneur are as follows :

(i) Risk-Bearing Function : It is the most important and specific function of an entrepreneur. Every business involves risk. There is no other factor of production except the entrepreneur, who bears risk of the business. The risk is caused by uncertainties attached to production, investment and profits. Another big risk is of technological obsolescence and frequent changes in Government policies. The entrepreneur has to calculate all these risks and then plan the organisation of various factors of production in different proportions.

(ii) Decision-making function: All the vital decisions of business are taken by the entrepreneur. He conceives the idea of a particular business after making an intensive study of the market conditions, business projects and economic viability. He takes all the vital decisions with regard to ‘what to produce’, ‘how much to produce’ how to produce and in what proportion to combine the factors of production.

(iii) Co-ordination and administration: An entrepreneur not only brings together different factors of production but establishes and co-ordinates an effective functional relationship among them. He frames the overall policies and keeps, a vigil eye and control on business.

(b)
(i)

Voluntary Debt	Compulsory Debt
Voluntary debt is a debt which is taken from the people by the Government on a voluntary basis. In case of voluntary loans, people voluntarily and willingly subscribe to the Government loans.	Compulsory debts are those loans which are forcibly taken from the people by the government. When the Government exercises its power or pressure for getting loans, such loans are known as compulsory loans.

(ii)

Regressive Tax	Degressive Tax
1. It implies that the rate of tax decreases with the increase in income.	1. It implies the rate of tax begins to increase simultaneously with the increase in income.
2. It is levied at a higher rate on the individuals having low income and the rate of tax is lower for the individuals with high income.	2. After reaching a specific limit, the tax- rate becomes proportional. or constant.

Question 10.
(a) Define a tax. Explain briefly two merits and two demerits of direct taxes. [5]
(b) What is inflation ? Discuss the effects of inflation on :
(i) Fixed income groups.
(ii) Producers. [5]
Answer:
(a) Tax is a compulsory contribution from a person to the Government to defray the expenses incurred in the common interest of all without reference to special benefit conferred.

Advantages of direct taxes :

1. Equitable : A direct tax is an equitable tax as it is levied according to the tax paying capacity of the people. Under progessive taxation system, tax rate increases as the income increases.
2. Economical: Direct taxes are economical in the sense that cost of collecting them is low. They are usually collected ‘at the source’.

Disadvantages of direct taxes :

1. Inconvenience : Direct taxes cause inconvenience to the tax payers mainly businessmen because of the need to maintain, elaborate accounts and to observe various formalities.
2. Tax evasion : By submitting false return of income or by concealing the income, some people evade tax.

(b) Inflation is sustained in the general price level of goods and services in an economy over a period of time.

The effects of inflation :

(i) On fixed income groups: Fixed income earners such as pensioners lose during inflation. First, in many cases, pension is fixed so that the money income of the pensioner remains same during inflation. Even when pensions are revised periodically, increase in pension does not keep pace with the rising prices, second, pensioners keep their savings in the form of bank and postal deposits which give them a fixed income in the form of interest.

(ii) On producers : During inflation, they gain in the short period. Usually, the cost of production does not rise as fast as the price of their product and so there is artificial margin of profit. However, they may be affected adversely in the long run. If the price level goes on increasing, the total consumption of their product would fall. The reduced consumption will ultimately raise the per unit production cost and reduce the profits.

Solving ICSE Class 10 Computer Applications Previous Year Question Papers ICSE Class 10 Computer Applications Question Paper 2013 is the best way to boost your preparation for the board exams.

ICSE Class 10 Computer Applications Question Paper 2013 Solved

Section – A (40 Marks)
(Attempt all Questions)

Question 1.
(a) What is meant by precedence of operators ? [2]
Answer:
Precedence is the order in which a program performs the operations in a formula. If one operator has precedence over another operator, it is evaluated first.

• Expressions inside parentheses are evaluated first.
• Nested parentheses are evaluated from the innermost parentheses to the outermost parenthesis.

(b) What is a literal ? [2]
Answer:
Literals are also constants. They are used to express particular values within the source code of a program. For example:
a = 6;
Here 6 in this piece of code is a literal constant.
Literal constants can be divided in Integer Numerals, Floating-Point Numerals, Characters, Strings and Boolean Values.

(c) State the Java concept that is implemented through :
(i) a superclass and a subclass
(ii) the act of representing essential features without including background details. [2]
Answer:
(i) Concept of inheritance
(ii) Encapsulation

(d) Give a difference between a constructor and a method. [2]
Answer:

Method	Constructor
A method is used to perform some operations.	Constructor is used to create an instance of object.
A method has a different name from that of a Class.	Constructor is a member function with the same name as that of its Class.
Method may or may not contain return type.	There is no return type given in a constructor signature (header). The value is this object itself so there is no need to indicate a return value.

(e) What are the types of casting showing by the following examples ?
(i) double x = 15.2; inty = (int) x;
(ii) int x = 12; long y = x; [2]
Answer:
(i) Explicit Conversion
(ii) Automatic Conversion
In Java type conversions are performed automatically when the type of the expression on the right hand side of an assignment operation can be safely promoted to the type of the variable on the left hand side of the assignment. Thus we can safely assign : byte → short → int → long → float → double.

Question 2.
(a) Name any two wrapper classes. [2]
Answer:
Each of Java’s eight primitive data types has a class dedicated to it. These are known as wrapper classes, because they “wrap” the primitive data type into an object of that class. So, there is an Integer class that holds an int variable, there is a Double class that holds a double variable, and so on.

(b) What is the difference between a break statement and a continue statement when they occur in loop ? [2]
Answer:
The break statement can also be used to jump out of a loop. The break statement breaks the loop and continues executing the code after the loop (if any).
The continue statement breaks one iteration (in the loop), if a specified condition occurs, and continues with the next iteration in the loop.

(c) Write statement so show how finding the length of a character array char[] differs from finding the length of a String object str. [2]
Answer:
The char [] uses length keyword whereas String object str uses length() method,
char [] c = {‘a’, ‘b’, ‘c’, ‘d’, ‘e’, ‘f’, ‘g’, ‘h’, ‘i’, ‘j’, ‘k’};
System.out.println(“Length of char array in Java is: “+c. length);
String str = “Example”;
int len = str.length(); //the length() method calculates total no of chars in string str.

(d) Name the Java keyword that:
(i) indicates that a method has no return type.
(ii) stores the address of the currently-calling object. [2]
Answer:
(i) void
(ii) this

(e) What is an exception ? [2]
Answer:
An exception is a problem that arises during the execution of a program. An exception can occur for many different reasons, including the following:

• A user has entered invalid data.
• A file that needs to be opened cannot be found. Some of these exceptions are caused by user error, others by programmer error, and others by physical resources that have failed in some manner.

Checked exceptions: A checked exception is an exception that is typically a user error or a problem that cannot be foreseen by the programmer. For example, if a file is to be opened, but the file cannot be found, an exception occurs. These exceptions cannot simply be ignored at the time of compilation.

Runtime exceptions: A runtime exception is an exception that occurs that probably could have been avoided by the programmer. As opposed to checked exceptions, runtime exceptions are ignored at the time of compilation.

Question 3.
(a) Write a Java statement to create an object mp4 of class digital. [2]
Answer:
public class digital {
public digital (String name) {
// This constructor has one parameter, name.
System.out.println (“Passed Name is :” + name);
}
public static void main(String args[]){
// Following statement would create an object mp4
digital mp4 = new digital (“Good Sound”);
}
}

(b) State the values stored in the variables strl and str2. [2]
String s1 = “good”; String s2 = “world matters”;
String st1 = s2. substring(5).replace(‘t’,’n);
String str2 = si. concat (str1);
Answer:
manners
good manners

(c) What does a class encapsulate ? [2]
Answer:
Encapsulation concerns the hiding of data in a class and making diem available only through its methods. If a variable is declared private, it cannot be accessed by anyone outside the class, thereby hiding the variable within the class. For this reason, encapsulation is also referred to as data hiding.

(d) Rewrite the following program segment using the if. else statement. [2]
comm = (sale>15000) ? sale x 5/100: 0;
Answer:
if(sale>15000)
comm = sale*5/100;
else
comm = 0;

(e) How many times will the following loop execute? What value will be returned ?
int x = 2, y = 50;
do {
++x;
y – = x ++ ; .
}
while(x < = 10);
return y; [2]
Answer:
Five times

(f) What is the data type that the following library Junctions return ?
(i) isWhitespace(char ch)
(ii) Math.random () [2]
Answer:
(i) isWhitespace(char ch) returns true if the character is a Java whitespace character, false otherwise.
(ii) Math.random() method returns a double value in the range 0.0 up to, but not including 1.0.

(g) Write a Java expression for ut + ½f t² [2]
Answer:
u*t + ½*f*Math.pow(t,2);

(h) If int n[] = {1, 2, 3, 4, 5, 7, 9, 13, 16}, what are the values of x and y?
x = Math.pow(n[4], n[2]);
y = Math.sqrt(n[5] + n[7); [2]
Answer:
125.0
4.47213595499958
(By declaring x and y of the double type)

(i) What is the final value of ctr when the iteration process given below, executes ? [2]
int ctr = 0;.
for(int i = 1; i <= 5; i ++)
for (int j = !; j <= 5; j +=2)
++ctr;
Answer:
15

(j) Name the methods of Scanner class that :
(i) is used to input an integer data from the standard input stream.
(ii) is used to input a String data from the standard input stream. [2]
Answer:
(i) nextlnt()
(ii) next()

Section – B (60 Marks)
(Attempt any Four questions from this section)

Question 4.
Define a class named FruitJuice with the following description:
Instance variables/data members:
int product code – stores the product code number
String flavour – stores the flavour of the juice (E.g. orange, apple, etc.)
String package – stores the type of packaging (E.g. tera pack, PET bottle etc.)
int pack_size – stores package size (E.g. 200 ml, 400 ml etc.)
int product_price – stores the price of the product

Member methods:
(i) FruitJuice() – Default constructor to initialize integer data members to 0 and String data members to “”.
(ii) void input() – To input and store the product code, flavour, pack type, pack size and product price.
(iii) void discount() – To reduce the product price by 10.
(v) void display() – To display the product code, flavour, pack type, pack size and product price. [15]
Answer:

class FruitJuice {
private int product_code;
private String flavour;
private String pactype;
private int packsize;
private int product_price;
void FruitJuice() {
product_code=0;
flavour = " ";
pac_type = " ";
pack_size = 0;
product_price = 0;
}
void input(int pc, String f, String pt, int ps, int pp) {
product_code=pc;
flavour = f;
pac_type = pt;
pack_size = ps;
product_price = pp;
System.out.println("Product Code = " + product_code);
System.out.println("Flavour " + flavour);
System.out.println("Pack Type = " +pac_type);
System.out.println("Pack Size = " +pack_size);
System.out.println("Product Price = " +product_price);
}
void discount() {
product_price = product_price-10;
System.out.println("Discounted Price = "+product_price);
}
void display() {
System.out.println("Product Code = " + product_code);
System.out.println("Flavour " + flavour);
System.out.println("Pack Type = " + pac_type);
System.out.println("Pack Size = " + pack_size);
System.out.println("Product Price = " + product_price);
}
}

Question 5.
The International Standard Book Number (ISBN) is a unique numeric book identifier which is printed on every book. The ISBN is based upon a 10-digit code. The ISBN is legal if:
1 × digit₁ + 2 × digit₂ + 3 × digit₃ + 4 × digit₄ + 5 × digit₅ + 6 ×digit₆ + 7 × digit₇ + 8 × digit₈ + 9 × digit₉ + 10 × digit₁₀ is divisible by 11.
Example: For an ISBN 1401601499
Sum = 1 × 1 + 2 × 4 + 3 × 0 + 4 × 1 + 5 × 6 + 6 × 0 + 7 × 1 + 8 × 4 + 9 × 9 + 10 × 9 =. 253
which is divisible by 11.
Write a program to:
(i) Input the ISBN code as a 10-digit integer.
(ii) If the ISBN is not a 10-digit integer, output the message, “Illegal ISBN” and terminate the program.
(iii) If the number is 10-digit, extract the digit of the number and compute the sum as explained above.
If the sum is divisible by 11, output the message, “Legal ISBN”. If the sum is not divisible by 11, output the message, “Illegal ISBN”. [15]
Answer:

import java.util.Scanner;
import java.io.*;
class ISBN {
public static void main() throws IOException {
BufferedReader br=new BufferedReader(new
InputStreamReader (System.in));
System.out.print("Enter a 10 digit code: ");
String s=br.readLine();
try {
Integer.parselnt( s );
System.out.println();
}
catch( Exception e) {
System.out.println("Input Error!");
System.exit(0);
}
int len=s.length();
if(len!=10)
System.out.println("Output: Illegal ISBN");
else {
char ch;
int dig=0, sum=0, k=10;
for(int i=0; i<len; i++) {
ch=s.charAt(i);
if(ch=='X')
dig=10;
else
dig=ch-48;
sum=sum+dig*k;
k-;
}
System.out.println("Output: Sum = "+sum);
if(sum%11 == 0) .
System.out.println("Leaves No Remainder - Legal ISBN Code");
else
System.out.println("Leaves Remainder - Illegal ISBN ");
}
}
}

Question 6.
Write a program that encodes a word into Piglatin. To translate word into a Piglatin word, convert the word into uppercase and then place the first vowel of the original word as the start of the new word alongwith the remaining alphabets. The alphabets present before the vowel being shifted towards the endfollowed by “AY”. [15]
Sample input (1) : London,
Sample output(1) : ONDONLAY
Sample input (2) : Olympics,
Sample output(2) : OLYMPICSAY ‘
Answer:

import javario.*;
class PigLatin {
public static void main() throws IOException {
BufferedReader in=new BufferedReader(new
InputStreamReader(System.in));
System.out.print("Enter the String:");
String s=in.readLine(),n="";
String strUpper = s.toUpperCase();
System.out.println("Original String: " + s);
System.out.println("String changed to uppercase: "+ strUpper);
char ch;
boolean b=false;
for(short i = 0;i < s.length();i++) {
ch=strUpper.charAt(i);
if(ch == A'||ch=='E'||ch==I'||ch=="O"|| ch=U'||ch==a'|| ch=='e'|| ch == "i' ll ch == 'o'||ch='u')
b = true;
if(b == true)
n+=ch;
}
for(short i=0;i<strUpper.length();i++) {
ch=s.charAt(i);
if(ch == A'||ch=='E'||ch==I'||ch=="O"|| ch=U'||ch==a'|| ch=='e'|| ch == "i' ll ch == 'o'||ch='u')
break;
n+=ch;
}
n+="AY";
System.out.print("Word in PigLatin: "+n);
}
}

Question 7.
Write a program to input 10 integer elements in an array and sort them in descending order using the bubble sort technique. [15]
Answer:

class BubbleSort {
private int a[] = new int[10];
public void inputdata(int array[]) {
for(int i=0;i<a.length;i++)
a[i]=array[i];
}
public void sorting() {
int i=0 j=0;
int temp=0;
System.out.println("Array Elements are = ");
for(i=0;i<a.length;i++) {
System.out.println(a[i] + " ");
}
// Now Sorting Elements
//through Bubble Sort
for(int k = 0;k < a.length;k++) {
for(j = 1 ;j < a.length;j ++ ) {
if(a[j - 1] < a[j]) {
temp = a[j - 1];
a[j - 1] = a[j];
a[j]=temp;
}
}
}
System.out.println("The sorted array is ");
for(i = 0;i<a.length;i++) {
System.out.println(a[i]+ " ");
}
}
}

Question 8.
Design a class to overload a junction series() as follows:
(i) double series(double n) with one double argument and returns the sum of the series.
sum = \(\frac{1}{1}+\frac{1}{2}+\frac{1}{3} \ldots \ldots \ldots+\frac{1}{n}\)
(ii) double series(double a, double n) with two double arguments and returns the sum of the series.
sum = \(\frac{1}{a^2}+\frac{4}{a^5}+\frac{7}{a^8} \ldots \ldots \ldots \ldots \ldots+\frac{10}{a^{11}}\) to n terms
Answer:

import javaio.*;
class SeriesOverload {
double series(double n) throws IOException {
System.out.println("Value of n =");
double sum = 0;
for(int i= 1 ;i<=n; i++) {
sum += 1.0/i;
}
return sum;
}
double series(double a, double n) throws IOException {
System.out.println("Value of a =" +a);
System.out.println("Value of n =" +n);
double sum = 0; intij;
for(i = 1; i <= n; i = i + 3) {
for(j = 2;j < n + 1; j = j + 3) {
sum = sum+ i/Math.pow(a,j);
}
return sum;
}
}
}

Question 9.
Using the switch statement, write a menu driven program :
(i) To check and display whether a number input by the user is a composite number of not (A number is said to be a composite if it has one or more than one factor excluding 1 and the number itself).
Example: 4, 6, 8, 9…….
(ii) To find the smallest digit ofan integer that is input.
Sample input : 6524
Sample output: Smallest digit is 2
For an incorrect choice, an appropriate message should be displayed. [15]
Answer:

import java.io.*;
class SwitchCase {
public static void num(String aigs[]) throws IOException
{
int n=0,d,ctr,ch;
int t;
InputStreamReader reader = new InputStream
Reader(System.in);
BufferedReader input = new BufferedReader (reader);
System.out.println("Enter 1 for Checking Composite number:");
System.out.println("Enter 2 for Checking the Smallest
}
Digit:");
System.out.println("Enter your choice
try {
DatalnputStream z = new DataInputStream(System.in);
ch=Integer.parseInt(z.readLine());
}
catch (Exception e) {
System.out.println("Input Error!");
System.exit(0);
}
System.out.println("Enter a numbei=");
try {
DatalnputStream y = new DataInputStream(System.in);
n=Integer.parseInt(y.readLine());
}
catch (Exception e) {
System.out.println("Input Error!");
System.exit(0);
}
d=1;
ctr=0;
switch(ch){
case 1 :
while(d<=n) {
if(n==1) 
System.out.println(+n + ": is Not a composite number"); 
System.exit(0); 
if(n%d==0) 
ctr++; 
d=d+1; 
if(ctr==2) 
System.out.println(+n + ": is a prime number"); 
else 
System.out.println(+n + ": is a composite number"); } 
break; 

case 2: 
int min=n%10; 
while(n>0) {
int a=n%10;
if(a<min)
min=a;
n=n/10;
}
System.out.println("The smallest digit is :" +min);
break;
}
}
}

Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2012 is the best way to boost your preparation for the board exams.

ICSE Class 10 Economics Question Paper 2012 Solved

Section – I (40 Marks)
(Attempt ALL Questions)

Question 1.
(a) Explain in brief the characteristics of land with respect to its supply and use. [2]
(b) Briefly explain the percentage method of calculating elasticity of demand. [2]
(c) State two differences between labour services provided by a surgeon and a farmer. [2]
(d) State two reasons for consumer exploitation in India. [2]
(e) How does use of money solve the problem of ‘lack of double coincidence of wants ‘that existed under the barter system ? [2]
Answer:
(a) Characteristics of Land :

1. Land is Limited in Supply: The quantity of land is given limited. Its supply can neither be increased nor be decreased by any human effort. Hence economists remark that land has no supply price.
2. Land has Multiple Uses : Land is used for variety of purposes like cultivation, dairy farming, sheep-rearing, building playground and so on. As it is demanded for multiple purposes its demand exceeds the supply, boosting its value to a very high level.

(b) Percentage Method of Calculating Elasticity of Demand: According to this method, elasticity of demand (E_d) is measured by the ratio of percentage change in quantity demanded to percentage change in price of the commodity.

Where Q stands for quantity (initial)
P stands for price (initial)
ΔQ stands for change in quantity
ΔP stands for change in price.

(c)

1. Labour service provided by a surgeon are highly skilled and technical whereas those provided by a farmer may be unskilled or semi-skilled.
2. The services provided by a surgeon may sometimes be in emergency situations, but that normally does not apply to a farmer.

(d) Reasons for Consumer exploitation in India:

(i) Misleading Advertisements : Consumers become victims of false claims for products blatantly advertised. Misleading, false or deceptive advertisements are quite common in the industry. Misrepresentations, for example, about the quality of a product may lead to a wrong purchase decision by a consumer.
Fictitious bargains are another common form of deception. Many offers are used to hire buyers into believing that they are getting something for nothing or at a nominal value for their money.

(ii) Adulteration: Consumers in many cases are victims of adulteration in food articles.

(e) Lack of Double Coincidence of Wants: ‘Simultaneous fulfilment of mutual wants by buyers and sellers’ is known as double coincidence of wants. There is lack of double coincidence, in the wants of buyers and sellers in barter exchange. The producer of jute may want shoes in exchange for his jute. But he may find it difficult to get a shoemaker who is also willing to exchange his shoes for jute. Thus a seller has to find out a person who wants to buy seller’s goods and at the same time who must have what the seller wants. But in case of money as a medium of exchange, this problem is solved, because money by itself has no utility. It is only an intermediary and thus facilitates exchange with a freedom of choice to buy the wanted things.

Question 2.
(a) Distinguish between stock of capital goods and capital formation using a suitable example. [2]
(b) State two circumstances under which the demand curve slopes upwards to the right. [2]
(c) How does the Central Bank act as a fiscal agent to the Government ? [2]
(d) A mild inflation is beneficial for economic growth. Justify the statement. [2]
(e) How can taxes be used for promoting economic growth? [2]
Answer:
(a) Difference between Stock of Capital Goods and Capital Formation:
Capital goods are those goods which help in production of more goods and have a long life. They are also known as durable-use producer goods such as machinery, equipments, plants, buildings etc. The accumulated stock of such goods is called stock of capital goods. On the other hand, Capital formation means, increase in physical capital stock of goods in an accounting year. According to Betham, “The amount of wealth a country adds to its capital during a period is known as the capital formation during that period.” Thus, capital formation implies the creation of real assets such as machines, factories, transport equipments, bridges, power projects, dams, irrigation systems, etc.

(b) The demand curve slopes downwards from left to right according to law of demand but there are cases where law of demand does not apply. In such cases, the demand curve slopes upwards to the right. We discuss below two of them.

(i) Articles of Snob Appeal: The law of demand does not apply to the commodities which serve as ‘status symbol’, increase social prestige or are a source of display of wealth and richness. These goods are demanded because of the enjoyment they give to their possessor from the feeling that other people envy him/her for possessing these high-priced items. Rich women would like to buy diamond simply because its price is very high. The higher price makes the possession of diamond more prestigious. When the price of diamond goes up, their prestige value will also go up. Therefore, at higher price the quantity demanded of diamond by rich consumers may increase.

(ii) Emergencies : Law of demand may also not hold good during emergencies like war, famines, etc. At such times, consumers behave in an abnormal way. If they expect shortage of goods, they would buy and hoard goods even at high prices during such periods. On the other hand, during depression they will buy less even at low prices.

(c) Central Bank as a Fiscal Agent: As a fiscal agent, the Central Bank performs the following functions:

1. It manages the public borrowings for the government.
2. It collects taxes and other payments on behalf of the government.
3. It acts as the government agent to enforce foreign exchange control.

(d) Mild degree of inflation has a positive effect on the functioning of an economy. Increase in prices of goods and services generally leads to increase in the profit margin. This provides stimulus to the producers to undertake more investment. As a result, production and employment increases. That is why, it is said that a mild degree of inflation is not only desirable but is necessary for the healthy functioning of an economy. A mild inflation lubricates the wheels of trade and industry. However, galloping and hyper inflation have serious and harmful consequences for the economy.

(e) Use of Taxation for Promoting Economic Growth : Besides its other uses, the taxation policy can also be used in promoting economic development of a country. The revenue collected by the government can be used in promoting development of agriculture, industry and infrastructure such as transport and communication, power generation, etc.

Question 3.
(a) Classify the following into Fixed capital and Circulating capital:

1. building
2. tailors
3. sewing machines
4. tailoring accessories. [2]

(b) State two examples of direct tax imposed by the Central Government in India. [2]
(c) What is meant by CRR? Briefly examine its role in credit control. [2]
(d) Using hypothetical data show a market demand schedule. [2]
(e) How does money act as a store of value? [2]
Answer:
(a) By definition, the fixed capital is durable-use producer goods which are used in the production process again and again. On the other hand, the capital (or goods) which are used only once in the production process is known as circulating capital. We classify the given items according to this definition as follows:

1. Building – fixed capital
2. Tailors – fixed capital
3. Sewing Machines – fixed capital
4. Tailoring accessories – Circulating capital

(b) Direct Tax: A direct tax is the tax whose burden is borne by the same person on whom it has been levied, i.e., its burden cannot be shifted to others. Direct taxes are levied on the income and property of persons. Income tax and corporate (profit) tax are most appropriate examples of direct taxes. Income tax is levied on the incomes of individual persons. Similarly corporate tax which is levied on the profit of a company is paid by the company itself which bears its burden also. Wealth tax, gift tax, interest tax, expenditure tax etc. are other examples of direct taxes,

(c) Cash Reserve Ratio (CRR) : A cash reserve ratio is the fraction of total deposits of the commercial banks which they must keep as cash reserve with the Central Bank. This minimum cash reserve ratio is fixed by the Reserve Bank of India. When the RBI wants to discourage credit or lending by commercial banks, it raises the CRR. With raised CRR, commercial banks have to keep greater proportion of their deposits with RBI and hence their lending power is reduced. On the other hand, when the RBI wants to encourage credit creation, it lowers the CRR.

(d) Market Demand Schedule: Demand schedule is a table, that shows different quantities of a commodity that would be demanded at different prices over a given period of time. It is of two types-Individual demand schedule and market demand schedule.

Market demand schedule is the table which shows various quantities of a commodity demanded by all the consumers at different prices, over a given period of time. It is obtained by adding up the individual demand schedules.

(e) Money as a Store of Value : Money can store value of goods in liquid form. By spending it we can get any commodity in fixture. Holding money is equivalent to keeping a reserve of liquid assets because it can be easily converted into other things. People, therefore, normally wish to keep a part of their wealth in the form of money. This desire is known as liquidity preference. Thus it would seem that value can be stored by hoarding money. Wheat or any other product which will command a value cannot be stored for a long period.

Question 4.
(a) State the difference between redeemable debt and irredeemable debt. [2]
(b) State two ways through which an entrepreneur contributes towards economic development. [2]
(c) How does Proportional tax differ from Progressive tax? [2]
(d) Distinguish between a tax and a subsidy. [2]
(e) Explain two methods of accepting deposits by commercial banks. [2]
Answer:
(a) Redeemable and Irredeemable Debts : Redeemable public debt is the debt that the government promises to pay off at some predetermined fixture date. The government regularly pays interest on this debt. The principal amount is paid back on the expiry of the due date. Therefore, in case of redeemable debt, the government has to make some arrangement for its repayment. Public debts are normally redeemable. On the other hand, irredeemable public debt is that debt the principal amount of which is never returned. The government does not make any promise to pay it off at some future date. However, the government continues to pay interest on it regularly. Such type of public debt is rare.

(b) Entrepreneurs can contribute towards the economic development of a country in the following ways :

1. Increasing Production : Entrepreneurship results in harnessing the various factors of production such as land, labour, capital and technology to the fullest extent. Entrepreneurs take up production of goods and services for meeting the demand of consumers, import substitution and exports.
2. Employment Generation: Entrepreneurship creates job opportunities in an economy. When economies are into recession large business units retrench their labour force and workers search for job in small business units.
3. Innovation : Entrepreneurship results in new technologies and products that displace older methods and products. It results in higher income and wealth.
4. Increasing Competition : Entrepreneurship results in innovation which leads to the development of new products, services and methods of production. Consequently competition increases in the industry as a whole leading to better products and lower prices.

(c) Proportional Tax : A tax is called proportional when the rate of taxation remains constant as the income of the tax-payer increases. In this tax system, all incomes are taxed at a single uniform rate irrespective of whether tax-payer’s income is high or low. For example, if the rate of income-tax is 10 per cent, every person – will be taxed at the same rate of 10 per cent, whether he earns ₹ 1 lakh per year or ₹ 20 lakh per year.

Progressive Tax: A tax is called progressive when the rate of taxation increases as the tax-payer’s income increases. In this tax system the rate of tax goes on increasing with every increase in income. In other words, lower income is taxed at a lower rate whereas higher income is taxed at a higher rate. For example, income upto ₹ 1 lakh a year may be taxed at a rate of 10 per cent, and income between ₹ 1 lakh and ₹ 2 lakh a year may be taxed at a rate of 20 per cent and so on.

(d) Difference between a Tax and Subsidy :

1. Taxes increase the price of commodities, whereas subsidies lower their prices.
2. Taxes reduce the purchasing power of the people, whereas subsidies increase the same.
3. Taxes increase the burden of the poor people, whereas subsidies provide them a relief.
4. Taxes feed the inflationary forces whereas subsidies reduce them.

(e) Methods of Accepting Deposits of Commercial Banks:
The primary function of a commercial bank is to accept deposits from people who have surplus funds with them. People deposit money with banks for safekeeping, convenience or to earn interest income. Commercial banks accept deposits in many ways. We discuss below two of them.

(i) Demand Deposits : Deposits in these accounts are payable on demand. These deposits can be withdrawn by the depositor at any time by means of cheques. There is no restriction on the amount and number of withdrawals. These accounts are mostly held by traders, businessmen and industrialists who uso these accounts for making business payments. Banks do not pay any interest on these deposits. Rather, the depositors have to pay something to the bank for the services rendered by it.

(ii) Savings Deposits : These deposits are also payable on demand and money can be withdrawn by cheques. However, the bank imposes a limit on the amount and number of withdrawals during a particular period. For example, a bank may allow its saving depositors only five cheques a month. These accounts are normally held by households who have idle cash for a short period. Saving accounts earn interest at nominal rates.

Section – II (40 Marks)
(Attempt any FOUR Questions)

Question 5.
(a) Discuss five characteristics of Capital as a factor of production. [5]
(b) State the Law of demand. Briefly explain any three determinants for the negative slope of the demand curve. [5]
Answer:
(a) Characteristics of Capital as a Factor of Production :

1. Passive Factor of Production : Like land, capital is also a passive factor of production. It cannot produce on its own. It becomes effective only when it is used by ‘labour’.
2. Man-made : Capital is man-made. It is the result of savings made by man. Capital items are generated when, human labour is applied to natural resources. Thus, its supply is increased or decreased by the efforts of man.
3. Mobility : It has the highest mobility amongst all the factors of production. It has both- place as well as occupational mobility, i.e., it is easily transferable from one place to another and also from one occupation to another. On the other hand, land is immobile, while labour has low mobility.
4. Elastic Supply : The supply of capital is elastic and can be adjusted easily and quickly according to demand. On the other hand, the supply of land is fixed and supply of labour can be increased or decreased easily and quickly.
5. Depreciation : Capital like plant and machinery, gradually depreciates over a period of time and requires repairs and replacement. Producers maintain a depreciation fund for this purpose.
6. Productive : Capital adds value in the production process. Production can be increased or decreased to a large extent if workers work with capital.
7. Involves Cost: Like land, capital is not a free gift of nature. Production of capital involves cost. Capital formation is possible only when present consumption is sacrificed.

(b) Law of Demand : Law of demand expresses the functional relationship between price of the commodity and the quantity of the commodity demanded. It states that:
Other things‘ being equal (CETERIS PARIBUS,), if the price of the commodity falls the quantity demanded for it rises and if price rises, quantity demanded for it falls.

Thus there is an inverse relationship between price of a commodity and its quantity demanded. Law of demand indicates only the direction of change and not the magnitude of change in demand, in response of change in price.

Price of Wheat(₹ per kg)	Quantity (kg.)
30	5
25	10
20	15

Determinants for the Negative Slope of the Demand Curve : Demand curve slopes downward to the right because of an inverse relationship between price and quantity demanded of a commodity. This inverse relation is due to the following factors :

(i) Income Effect: Price effect can be divided into two parts-income effect and substitution effect. Change in demand due to change in consumer’s real income resulting from change in price of a commodity, is known as income effect. When the price of a commodity falls, automatically the real income of the consumers increases. This increased purchasing power can be used to buy more of that commodity.

(ii) Substitution Effect : Change in demand for a commodity due to change in relative price of its substitutes, is known as substitution effect. When the price of a commodity rises, automatically the relative price of its substitutes becomes cheaper. Thus consumers prefer to buy more quantity of its substitutes such that demand for that commodity declines.

(iii) Law of Diminishing Marginal Utility: Utility is the satisfaction a consumer gets from the consumptions of a commodity. According to the Law of diminishing marginal utility, with the consumption of every additional unit of a commodity, the marginal utility derived from it declines, a rational consumer would prefer to buy this additional unit only at a lower price. This causes an inverse relation between price and demand.

(iv) Several uses of a Commodity : Certain goods such as coal, milk, steel, electricity etc. have composite demand. When their prices rise, they are used only for more important uses. But when their prices fall, they can be put to various uses and hence their demand rises.

(v) Change in number of Consumers: When the price of a commodity falls, new consumers who could not afford this commodity earlier, can now buy it. Hence due to these additional consumers with fall in price quantity demanded rises.

Question 6.
(a) Define Inflation. Explain any two fiscal measures and two monetary measures to control it. [5]
(b) Distinguish between the following
(i) Extension and Increase in demand.
(ii) Normal goods and Inferior goods. [5]
Answer:
(a) Inflation : Inflation is defined as a process of persistent and appreciable increase in the overall price level. Its main features are as follows:

1. Persistent price rise.
2. Increase in overall price level.
3. Appreciable or considerable rise in prices.
4. expressed in terms of inflation rate.

Measures to Control Inflation : It is very necessary to control inflation before it assumes a serious proportion and threatens the very existence of the economic and socio-political life of the country. Various measures to control inflation are as follows:

(i) Monetary Measures: Monetary policy is the policy of the Central Bank to regulate the availability, cost and use of money and credit. In order to control demand-pull inflation, it is essential to adopt restrictive monetary policy. Restrictive monetary policy implies, reducing the supply of money and availability of credit. The Central Bank may adopt quantitative and qualitative measures to implement its anti-inflationary restrictive monetary policy. Quantitative measures such as open market operations, cash reserve ratio, statutory liquidity ratio and bank rate, influence the supply of money, availability of bank credit and its cost, i.e., interest rate.

Selective credit control measures aim at influencing the purpose for which bank credit is made available and thereby affect the direction of bank credit. For example, the Central Bank can sell government securities in the open market and thus reduce the excess purchasing power in the market.

(ii) Fiscal Measures : Fiscal policy is the policy of the government related to its revenue and expenditure. Contractionary fiscal policy is used to control demand- pull inflation. Contractionary fiscal policy implies reducing government expenditure and increasing government revenue. It can be implemented through the tools of public expenditure, taxation and public borrowing in the following ways:

(a) Reduction in public expenditure : Public expenditure is an important component of aggregate demand. Steps should be taken to reduce unproductive and non- developmental government expenditure which does not increase the productive capacity of the economy.
For example, expenditure on defence should be reduced. Such expenditure only increases the purchasing power in the hands of people without any corresponding increase in output.

(b) Increase in taxes: Increased direct taxes such as income tax, corporate tax, wealth tax, etc. reduce the disposable income of the tax-payers and hence their consumption expenditure. Increased indirect taxes such as sales tax, excise duty, etc. also reduce the aggregate demand by making die goods costlier. Also, the government should penalise the tax-evaders by imposing heavy fine.

(c) Public borrowings : Through public borrowings, the government takes away the excess purchasing power from public. This reduces aggregate demand and hence price level. Also, public borrowing enables the government to meet its expenditure and thereby reduce the need for deficit financing.

(b) (i) Difference between Extension and increase in Demand:

(a) Meaning : Extension of demand refers to the situation when quantity demanded of a commodity rises due to fall in its price, other things remaining the same. Increase in demand refers to the situation when there is more of demand at the same price or the same demand at a higher price.

(b) Cause : Extension of demand takes place due to fall in price. Increase in demand takes place due to change in factors other than price, such as increase in consumer’s income, rise in price of substitute commodity, fall in price of complimentary commodity, change in taste in favour of that commodity, increase in number of consumers or when price rise is expected in near future.

(c) Demand Curve: Extension of demand is shown through a downward movement along the same demand curve.

Increase in demand is shown through a rightward or upward shift of the demand curve.

(ii) Difference between Normal Goods and Inferior Goods : On the basis of nature, goods can be classified into two types:
(a) Normal Goods (Superior Goods).
(b) Inferior Goods.

(a) Normal Goods refer to those goods whose income effect is positive – i.e., all other factors remaining the same, as income increases, demand also increases and vice-versa. For example, cheese, butter, chocolates, biscuits, etc.

The above demand curve shows change in demand due to increase in income, keeping other factors unchanged, for normal goods. When income of a consumer increases, his/her demand curve shifts to the right from D₀ to D₁ for normal goods.

(b) Inferior goods refer to those goods whose income effect is negative – i.e., all other factors remaining the same, as income increases, demand decreases and vice-versa. For example, some cheap shoes, coarse cloth, leftover food etc.

If the demand for a good rises when income falls, the good is called an inferior good. An example of an inferior good might be bus rides. As your income falls, you are less likely to buy a car or take a cab and more likely to ride the bus. If income increases the demand for inferior goods decreases.

The above graph shows the effect of increase in income on demand of inferior goods, assuming other factors unchanged. Consumption of the inferior good decreases from D₀ to D₁ due to increase in income of a consumer.

The reason for the fall in the demand for inferior goods due to increase in income is that previously the consumer was not able to afford superior goods. When the income of consumer rises, he/she shifts from inferior to superior goods. As a result, demand for inferior goods falls.

Question 7.
(a) With respect to division of labour state the following :
(i) An example each of vertical and horizontal division of labour.
(ii) Two advantages to the producer.
(iii) Two disadvantages to the worker. [5]
(b) Discuss five causes of the low rate of capital formation in India. [5]
Answer:
(a) Division of Labour :

(i) Horizontal and Vertical division of labour :
They are forms of process-based division of labour. In Horizontal division of labour, the production process is so organised that the different parts of the process can run simultaneously. For example, in case of automobiles, different parts are manufactured simultaneously and then assembled together at the end. In Vertical division of labour, the production process is so organised that there are successive stages in the production of a commodity. For example, in cotton textile industries, raw cotton is first transformed into yarn by spinning. Only then can the yam be woven into cloth. Thus, weaving depends upon spinning and dying depends upon weaving.

(ii) Advantages to the Producer :

1. Increase in labour efficiency: Division of labour permits worker to repeat the same task again and
   again. This gives him specialisation, proficiency and perfection in that task. This makes him expert in the job and improves his efficiency in terms of quantity, quality and time.
2. Saving of time : As the worker is required to carry out only one type of job, he is not required to move frequently from one job to another. Also he need not to change the tool or machine now and then. This saves time and increases output.
3. Economies of large scale production: Division of labour facilitates economics of large scale production, both internal and external. This results in higher profits for the producers as well as reasonable prices.

(iii) Disadvantages to the Worker :

1. Monotony of work : Under the division of labour, the worker is required to perform the same type of job again and again. The job becomes monotonous and the worker gradually loses interest in it. Work causes a kind of mental fatigue, which in turn deteriorates the work quality.

2. Lack of mobility : A worker is trained only in a particular part of total work. Thus, he cannot easily shift to other jobs and when employed, he may find difficulty in finding the same job in another factory.

3. Retards development of personality : Since the worker does the same type of job over and over again, either by using his hands or legs or both, his muscles and mind remain active only in that particular direction repeatedly. This hampers his mental and physical development in other directions. His outlook becomes narrow and it retards his overall personality development.

4. Lack of skill, craftsmanship and creativity : As the worker is required to perform only a part of total work, he does not get a chance to show his creativity and craftsmanship. For example, a worker in a shoe factory knows either making of sole or simple finishing the job of the shoe.

(b) Causes of Low Rate of Capital Formation in India : It is true that the rate of capital formation in India has increased during the plan period. Yet this rate is very low as compared to advanced countries such as USA, Japan, UK, etc., where it ranges from 30 to 35%. Important reasons for lower rate of capital formation are as follows:

(i) Low Saving Ability : People of India possess all the factors which motivate the ‘will’ and ‘desire’ to save such as old age considerations, family affection, social and political influence. But their ability to save is low. This is because of low per capita income. Per capita income is low because of low productivity-both in the agriculture and industrial sectors and rising population.

(ii) Agriculture Economy: Majority of people in India are agriculturists who follow old methods and have uneconomic agricultural holdings. These factors leave very little or no surplus with them.

(iii) Habit of Hoarding: Most of the illiterate people are in the habit of hoarding their savings in their houses. Such savings are of no use as far as capital formation is concerned as these hoardings are not put to any productive purpose.

(iv) Demographic Reasons : The growth rate of population is very high in India which keeps the rate of capital formation at a low level. Most part of income is spent on bringing up the new family members. Thus, there is little scope for saving.

(v) Failures of Public Sector: Most of the public sector enterprises have been running into losses. This has adversely affected the level of investment.

(vi) Inflation : Due to inflationary trend, middle class finds it very difficult to save and thus is contributing very little to capital formation.

(vii) Inadequate Investment Channels : The banking and financial facilities are inadequate in India. Even though after nationalisation, a large number of branches of nationalised banks have been opened in remote areas and villages, still a very wide gap exists.

(viii) Insecurity : The law and order condition in many parts of the country is not normal. There is no adequate security of life and property in some of the regions and this has discouraged the opening of new industries and investment in those areas.

Question 8.
(a) Discuss the Junctions of the Central Bank as a ‘Banker to Banks ’and ‘Banker to the Government ’. [5]
(b) Differentiate between the following:
(i) Limited legal tender and Unlimited legal tender.
(ii) Standard money and Bank money. [5]
Answer:
(a) Functions of the Central Bank :

(i) As ‘Banker to Banks’: There are usually hundreds of banks in a country. There should be some agency to regulate and supervise their proper functioning. This duty is discharged by the Central Bank. Central Bank acts as Banker’s Bank in three capacities :

1. it is custodian of their cash resources. Banks of the country are required to keep a certain percentage of their deposits with the Central Bank and in this way the Central Bank is the ultimate holder of the cash reserves of commercial banks,
2. Central Bank is lender of last resort. Whenever banks are short of funds, they can’ take loans from the Central Bank. Thus Central Bank is a source of great strength to the banking system.
3. It acts as a bank of central clearance, settlements and transfers. Its moral persuasion is usually very effective, so far as commercial banks are concerned.

(ii) As ‘Banker to Government’: Central Bank functions as a banker to the government – both central and state governments. It carries out all banking business of the government. Government keeps their cash balances in the current account with the Central Bank. Similarly Central Bank accepts receipts and makes payment on behalf of the governments. Also Central Bank carries out exchange, remittance and other banking operations on behalf of the government. Central Bank gives loans and advances to governments for temporary periods, as and when necessary, and it also manages the public debt of the country.

(b) (i) Difference between Limited and Unlimited Legal Tender: According to the legal definition of money, “money is what the law says it is.” Anything will be called money if the law proclaims it money. It will have general acceptability. Thus it is a legal tender money since it has legal sanction by the government as a medium of exchange.

On the basis of legal recognition, money is of two kinds,

1. Legal tender money, and
2. Optional money (or non-legal money).

Legal Tender Money: It means money under law of land. It is money issued by monetary authority or the government which cannot be refused by any person in payment for transactions. Everybody is bound to accept it in exchange for goods and services and in discharge of debts. Currency (coins and notes) is legal tender money which cannot be refused in payment for transactions. Currency is also called Fixed Money because it serves as money on the fiat (order) of the government. (But demand deposit of commercial Banks is not legal tender because its acceptance is optional.) The legal tender status given by the government to money may be limited or unlimited.

• Limited legal tender is that money which no person can be forced to accept beyond a certain maximum limit fixed by law. For instance in India coins of 5,10,20 and 25 paise can be accepted upto maximum sum of ₹ 25. One can refuse payments in these small coins beyond a sum ₹ 25.
• Unlimited legal tender is the money which a person has to accept up to any limit. There is no limit to quantity of money offered in payment. For example in India, all currency notes and coins of one rupee are unlimited legal tender money.

(ii) Difference between Standard Money and Bank Money : Modem money can be classified into two broad categories:
1. Standard money
2. Bank money.

1. Standard money : It consists of Paper notes and coins. Paper notes and coins are together called currency. Coins refer to the metallic money and paper money refers to the currency notes.

2. Bank money: Bank money refers to bank deposits which can be withdrawn by means of bank cheques and bank drafts. Cheques and bank drafts are widely accepted these days because they are easy to use for large transactions and are relatively safe. Chequable bank deposits and bank drafts are not legal tender. A person can legally refuse to accept payment through cheques and can insist on cash payment. This is because there is no guarantee that a cheque will be honoured by the bank in case of insufficient deposit with it.

Main points of Difference:

1. Standard money consists of coins and currency notes while bank money consists of cheques, bank drafts and credit cards.
2. Standard money is legal tender money while bank money is optional.
3. Standard money is issued by the Central Bank of the country while bank money is issued by the commercial banks.

Question 9.
(a) Using graphs distinguish between change in supply and change in
(b) Briefly explain any five rights stated in the Consumer Protection Act.
Answer:
(a) Distinguish between Change in Supply and Change in Quantity Supplied:

1. Shift in the supply curve (or change in supply) : If more or less quantity of a commodity is supplied at every alternative price due to changes in factors other than the price of the commodity concerned, it is known as shift in the supply curve or change in supply. In this situation, supply curve itself shifts either to right or to the left. Rightward shift to supply curve indicates increase in supply, while leftward shift indicates, decrease in supply.

2. Movement along a supply curve (or change in quantity supplied): Other things being equal, if the quantity supplied increases or decreases due to rise or fall in the prices of the commodity alone, it is known as movement along a supply curve or change in quantity supplied. In this, we move along the same supply curve either upwards or downwards. Upward movement along the supply curve is extension of supply (that is, more quantity supplied at a higher prices) while the downward movement is contraction of supply (that is, less quantity supplied at a lower prices).

Thus, change in quantity supplied is caused by a change in the commodity’s own price. In this situation, supply curve remains the same. On the other hand, a change in supply is caused by a change in something other than the commodity’s own price. A shift in the supply curve may be caused by change in the prices of other goods, change in the prices of factory of production, change in technique of production or change in the goals of the producer.

(b) Consumer Protection Act : The Consumer Protection Act provides for six rights of consumers. The consumer protection councils set up under the Act are intended to promote and protect the various rights of consumers. These rights include the following:

1. Right to Safety : The consumer has a right to be protected against goods and services which are hazardous to life and health. For instance, electrical appliances which are manufactured with substandard products or do not conform to the safety norms might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are 1ST marked as this would be an assurance of such products meeting quality specifications.

2. Right to be Informed : The consumer has a right to have complete information about the product he intends to buy including its ingredients, price, quantity, directions for use etc. It is because of this reason that the legal frame work in India requires the manufacturers to provide such information on the package and label of the product.

3. Right to Choose : The consumer has the freedom to choose from a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc. and allow the consumer to make a choice from amongst these.

4. Right to be Heard : The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.

5. Right to seek Redressal : The consumer has a right to get relief in case the product or service falls short of his expectations. The Consumer Protection Act provides a number of reliefs to the consumers including replacement of the product, removal of defect in the product compensation paid for any loss or injury suffered by the consumer, etc.

6. Right to Consumer Education: The Consumer has a right to acquire knowledge and to be a well informed consumer throughout life. He should be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations. The Consumer Protection Act by conferring these rights on the consumers empowers them to fight against any unscrupulous, exploitative and unfair trade practices adopted by sellers.

Question 10.
(a) Discuss the Reason for the Growth of Public Expenditure in India. [5]
(b) Explain three merits and two demerits of indirect taxes.
Answer:
(a) Reasons for the Growth of Public Expenditure in India:

(i) Defence : An important factor responsible for increase in public expenditure is the large defence expenditure. The political situation all over the world is uncertain and insecure. The arms race between countries and development of sophisticated armaments and nuclear weapons have resulted in massive defence expenditure. In India, the defence expenditure has increased substantially in view of continued aggression by Pakistan and the urgency of national security.

(ii) Population Growth : Another factor responsible for the increase in public expenditure is the growth in population. In India the population has increased at an alarming rate. Growth in population on this scale has increased the demand for various government services like education, public health, transport, administration and maintenance of law and order. It has also increased the demand for various developmental activities of the government.

(iii) Urbanisation : The spread of urbanisation is another factor for the increase in public expenditure. Urbanisation calls for greater public expenditure on various economic, social, civil and administrative services. With more people concentrating in the cities, law and order machinery like police and judiciary has to be strengthened, more of public health services have to be provided, educational facilities have to be expanded, transport and communication system has to be improved and housing facilities have to be provided. All these activities involve heavy expenditure.

(iv) Expansion of Administrative Machinery : There has been a large expansion in the administrative machinery in the country since independence. This has resulted in increase in government expenditure. Moreover, expenditure on administration has increased sharply due to revision of pay scales of the government employees.

(v) Activities of a Welfare State : A welfare state is one which provides various social security schemes for the welfare of its citizens. In view of this, the modem governments have to incur large expenditure on various social security and welfare measures, such as old age pensions, unemployment allowances, sickness benefits, etc. The government is also required to undertake many other welfare functions like education, public health, etc.

(vi) Development Functions : The most important factor in developing countries like India that has led to a spectacular increase in public expenditure is the developmental functions undertaken by the governments. The government has to spend a huge amount for the development of the rural sector. It has to undertake large amount of investment in promoting industrial development. The government is also required to spend heavily on the development of transport and communications to cater to the needs of economics development. All these development activities of the government have resulted in a phenomenal increase in public expenditure.

(vii) Building up Infrastructural Base : Public expenditure in the country has increased also because of the need of building up strong infrastructural base. The government has to spend heavily in the expansion of economic and social infrastructural facilities like transport arid communications, power generation, irrigation projects, banking facilities, education institutions, etc.

(viii) Maintaining Economic Stability : Maintenance of economic stability has called for large expenditure by the government. The government is undertaking social security and welfare schemes on a permanent and comprehensive basis, requiring large government expenditure partly with the objective of maintaining economic stability. In particular, the government has to incur a huge expenditure during the period of recession or depression so as to overcome such situations of low level of economic activity.

(ix) Servicing of Public Debt: The government in India has been borrowing heavily from within the country and from abroad to finance its development plans. This has created a large burden of interest payments, leading to a high increase in public expenditure.

(b) Merits of Indirect Taxes : The important advantages of indirect taxes are as follows:

1. Convenience: Indirect taxes have the great merit of convenience. They are paid in small amounts and at intervals instead of one lumpsum amount. Moreover, the amount of tax is included in the price of the commodity, and hence, the burden of these taxes is not felt very much by the tax-payers.
2. Elastic : Indirect taxes can be made elastic and productive, particularly when they are imposed on essential goods and services like edible oils, flour, sugar, etc. whose demand is inelastic. The government can get adequate tax revenue by increasing the tax rate on these commodities.
3. Less Chances of Tax-evasion : Another merit of indirect taxes is that with proper administration, the chances of tax-evasion in their case are less. They are difficult to be evaded as they are included in the price of the commodity.
4. Wide Coverage : Indirect taxes can be imposed on a large variety of goods so that most of the persons contribute something to the revenue of the government. Hence, indirect taxes help in making the tax system broad-based.
5. Equity : Indirect taxes can be made equitable by imposing heavy taxes on luxury goods consumed by the wealthy consumers and low taxes on the essential commodities.

Demerits of Indirect Taxes: Following are the important disadvantages of indirect taxes:

1. Regressive and Unjust : The main drawback of indirect taxes is that they are regressive and, therefore, unjust. Indirect taxes are generally imposed on the consumption of goods. They are indiscriminately in the sense that poor people have to pay as much as rich people.
2. Inflationary Impacts : Another weakness of indirect taxes is that they feed inflationary forces. The imposition of an indirect tax on a commodity increases its price. This may lead to rise in the cost of living as a result of which trade unions demand higher wages to maintain the real income of the workers.
3. Uneconomical: The administrative cost of collecting indirect taxes is generally heavy because they have to be collected from a large number of persons.
4. Uncertainty : The revenue from indirect taxes cannot be estimated accurately. An indirect tax on a commodity leads to rise in the market price of the commodity. Consequently, its demand falls, but it is difficult to know the extent to which the demand for the commodity will fall as a result of imposition of tax. Thus, there is always an element of uncertainty of revenue from the indirect taxes.

Solving ICSE Class 10 Computer Applications Previous Year Question Papers ICSE Class 10 Computer Applications Question Paper 2014 is the best way to boost your preparation for the board exams.

ICSE Class 10 Computer Applications Question Paper 2014 Solved

Section – A (40 Marks)
(Attempt all Questions)

Question 1.
(a) Which of the following are valid comments?
(i) /* comment */
(ii) /* comment
(iii) II comment
(iv) */ comment */ [2]
Answer:
(i) /* comment */

(b) What is meant by a package? Name any two Java Application Programming Interface packages. [2]
Answer:
Packages are used in Java in order to prevent naming conflicts, to control access, to make searching/locating and usage of classes, interfaces, enumerations and annotations easier, etc.

A Package can be defined as a grouping of related types(classes, interfaces, enumerations and annotations) providing access protection and name space management.

Java Application Programming Interface packages are – applet packages, graphics and GUI swing packages

(c) Name the primitive data type in Java that is:
(i) a 64 bit integer and is used when you need a range of values wider than those provided by int.
(ii) a single 16 bit Unicode character whose default value is ‘\u0000’. [2]
Answer:
(i) long
(ii) char

(d) State one difference between floating point literals float and double. [2]
Answer:

• Float occupies 4 bytes in memory. Values are represented with approximately 7 decimal digits accuracy.
• Double occupies 8 bytes in memory. Values are represented with approximately 17 decimal digits accuracy.

(e) Find the errors in the given program segment and re-write the statements correctly to assign values to an integer array.
int a = new int (5) ;
for(int i=0;i<–5; i++)
a[i]=i; [2]
Answer:
int a = new int (5) ;
//missing brackets and use of wrong brackets for(int i=0;i<=5; i++) ‘
//This will assign 6 elements instead of 5. a[i]=i;
Correct statements have been mentioned below-
int a [] = new int [5];
for(int i=0;i<=5;i++) a[i]=i;

Question 2.
(a) Operators with higher precedence are evaluated before operators with relatively lower precedence. Arrange the operators given below in order of higher precedence to lower precedence. [2]
(i) &&
(ii) %
(iii) >=
(iv) ++
Answer:
Precedence from higher to lower is as follows
(i) ++
(ii) %
(iii) >=
(iv) &&

(b) Identify the statements listed below as assignment, increment, method invocation or object creation statements. [2]
(i) System, out.print In (‘Java “);
(ii) costPrice = 457.50;
(iii) Car hybrid = new CarQ;
(iv) petrolPrice++;
Answer:
(i) Method invocation
(ii) assignment
(iii) object creation
(iv) increment statement

(c) Give two differences between switch statement and if-else statement. [2]
Answer:
A switch statement is usually more compact than lots of nested if else and therefore, more readable.
In most languages, switch only accepts primitive types as key and constants as cases. In many languages, switch only accepts only some data types, if allows complex expressions in the condition while switch wants a constant. It accepts all data types.

(d) What is an infinite loop? Write an infinite loop statement. [2]
Answer:
An infinite loop is that loop which never ends. It happens when the loop condition is always evaluated as true.
public class InfiniteForLoop {
public static void main(String[] args) {
for(;;)
System.out.println(“Hello”);
}
}
Output would be
Hello
Hello
Hello
Hello
..
..

(e) What is a constructor? When is it invoked? [2]
Answer:
A java constructor has the same name as the name of the class to which it belongs. Constructor’s syntax does not include a return type, since constructors never return a value.
It is invoked using new operator.

Question 3.
(a) List the variables from those given below that are composite data types.
(i) static int x;
(ii) arr[i]=10;
(iii) obj.displayQ;
(iv) boolean b;
(v) private char chr;
(vi) String str; [2]
Answer:
(ii) and (iii) are composite data types.

(b) State the output of the following program segment.
Stringstr1 = “great”; Stringstr2=”minds”;
System.out.println(str 1 .substring(0, 2).concat(str2. substring(1)));
System, out.println((“WH” + (str1.substring(2). toUpperCaseO))); [2]
Answer:
grinds
WHEAT

(c) What are the final values stored in variables x and y below ? [2
double a = -6.35;
double b = 14.74;
double x = Math.abs(Math.ceil(a));
double y = Math.rint(Math.max(a,b));
Answer:
6.0
15.0

(d) Rewrite the following program segment using the if-else statements. String grade =(mark>=90)? “A” : (mark>=80)? “B” : “C”; [2]
Answer:
if (mark>=90){
grade = “A”;
}
else if (mark>=80) {
grade = “B”;
}
else
grade = “C”;

(e) Give output of the following method? [2]
public static void mainfString argsjj) {
int a = 5; .
a++;
System.out.println(a);
a -= (a-) – (-a);
System.out.println(a);}
Answer:
6
4

(f) What is the data type returned by the library functions? [2]
(i) compareTo()
(ii) equalsTo()
Answer:
(i) It can return 0, 1 and -1.
(ii) true or false

(g) State the value of characteristic and mantissa when the following code is executed. [2]
Strings = “4.3756”;
intn = s.indexOf(‘.’);
int characteristic = Integer.parselnt(s.substring(0, n));
int mantissa = Integer.valueOf(s.substring(n+1));
Answer:
3756

(h) Study the method and answer the given questions? public void sampleMethodQ {
for(int i = 0; i<3; i++)
{
for(intj=0; i<2;j++)
{
int number = (int)(Math.random()*10);
System.out.println(number);
}}}
Answer:
(i) The loop will execute infinitely.
(ii) Between 0 and 5.

(i) Consider the following class:
public class myClass {
public static int x=3, y=4;
public int a=2, b=3;}
(i) Name the variables for which each object of the class will have its own distinct copy.
(ii) Name the variables that are common to all objects of the class. [2]
Answer:
(i) x and y
(ii) a and b

(j) What will be the output when the following code segments are executed?
(i) Strings = “1001”;
int x = Integer.valueOf(s);
double y = Double.valueOffs);
System.out.println(“x= ” +x);
System.out.println(“y=” +y);
Answer:
0x = 1001
y = 1001.0

(ii) System.out.printlnf’The King said V’Begin at the beginning!\” to me.”); [2]
Answer:
The King said “Begin at the beginning!” to me.

Section – B (60 Marks)
(Attempt any FOUR questions from this section)

Question 4.
Define a class movieMagic with the following description: Instance variables/data members: int year : to store the year of release of a movie String title : to store the title of the movie float rating : to store the popularity rating of the movie (minimum rating=0.0 and maximum rating = 5.0)
Member methods:
1. movieMagic(): Default constructor to initialize numeric data members to 0 and String data member to ” “.
2. void accept(): To input and store year title and rating.
3. void displayf): To display the title of a movie and a message based on the rating as per the table.

Rating	Message to be displayed
0.0 to 2.0	Flop
2.1 to 3.4	Semi-hit
3.5 to 4.5	Hit
4.6 to 5.0	Super Hit

Write a main() method to create an object of the class and call the above member methods. [15]
Answer:

import java.io.*;
class movieMagic {
private int year;
private String title;
private float rating;
movieMagic() {//constructor
year=0;
title= " ";
rating = 0.0f;
}
void accept() throws IOException{
BufFeredReader reader = new BufferedReader (new InputStreamReader(System.in));
System.out.println("Enter the year::");
String y = reader.readLine();
System.out.println("Enter the title::");
title=reader.readLine();
System.out.println("Enter the rating::");
String i=reader.readLine();
rating = FloatparseFloat(r);
}
Void display() {
if (rating<0){
System.out.println("Wrong Input");
System.exit(0);
}
if(rating >=0 && rating <=2.0) {
System.out.println("Flop");
}
if(rating >= 2.1 && rating <= 3.4) {
System.outprintln("Semi-hit");
}
if(rating >= 3.5 && rating <= 4.5) {
System.out.println("Hit");
}
if(rating>=4.6 && rating <=5.0) {
System.outprintln("Super-Hit");
}
if (rating > 5.0){
System.outprintln("Wrong Input(range is 0 - 5)");
System.exit(0);
}
System.out.println("Title::" +title);
System.out.println("Rating::" +rating);
}
public static void main(String args[]) throws IOException {
movieMagic mgc = new movieMagic(); //creation of object mgc.display();
}
}

Question 5.
A special two-digit number is such that when the sum of the digits is added to the product of its digits, the result is equal to the original two-digit number
Example:
Consider the number 59.
Sum of digits = 5 + 9 = 14
Product of its digits = 5 × 9 = 45
Sum of the digits and product of digits = 14 + 45 = 59 .
Write a program to accept a two-digit, number. Add the sum of its digits to the product of its digits. If the value is equal to the number input, output the message “special-two digit number” otherwise, output the message “Not a special two¬digit number”. [ 15]
Answer:

import java.io.*;
class DigitSum {
public static void main(String args[]) throws IOException {
int num,a=0, sum=0;
int prod=1;
int sumproduct=0;
InputStreamReader reader= new InputStream Reader(System.in);
BufferedReader input = new Buffered Reader(reader);
System.out.println("Enter the number::");
String x = inputreadLineO;
num = Integer.parselnt(x);
System.out.println("You Entered the Number = " +num);
if(num<10 || num>99) {
System.outprintln("Number should be two-digit number:");
}
else {
if( isSpecialTwoDigitNumber( num ) )
System.out.println( "Special two-digit number" );
else
System.outprintln( "Not a Special two-digit number" );
}
}
public static boolean isSpecialTwoDigitNumber (int num){
int first, second;
first = num /10;
second = num% 10;
return (first+second + first* second == num );
}
}

Question 6.
Write a program to assign a full path and file name as given below. Using library functions, extract and output the file path, file name and file extension separately as shown. [15]
Input:
C: \Users \adm in \Pictures \flowers.jpg
Output:
Path: C: \Users\admin \Pictures \
File name: flower
Extension: jpg
Answer:

import java.util.*;
class MyFile{
public static void main( String args[] ){
Scanner sc = new Scanner( System.in );
String fullPath, path, filename, extension;
System.outprintln("Enter full path: ");
fullPath = sc.nextLine();
int lastSlash, lastDot;
lastSlash = fullPath.lastIndexOf("\\");
lastDot = fullPath.lastIndexOf(".");
path = fullPath.substring(0, lastSlash + 1);
filename = fullPath.substring( IastSlash+1, lastDot);
extension = fullPath.substring( lastDot+ 1 );
System.out.println( "Path: " + path );
System.out.println( "File name: "+ filename);
System.out.println( "Extension: " + extension );
}
}

Question 7.
Design a class to overload a function area as follows:
1. double area (double a, double b, double c) with three double arguments, returns the area of a scalene triangle using the formula:
area = \(\sqrt{s(s-a)(s-b)(s-c)}\) where s
= \(\frac{a+b+c}{2}\)
2. double area( int a, int b, int height) with three integer arguments, returns the area of a trapezium using the
formula : area = \(\frac{1}{2}\) height (a+b)
3. double area( double diagonal 1, double diagonal ) with two double arguments, returns the area of a rhombus using the formula:
area = (diagonal₁ × diagonal₂) [15]
Answer:

import javado.*;
class FunctionOverloading {
void area(dou ble a, double b, double c){
System.out.println("Value of one side=" +a);
System.outprintln("Value of second side=" +b);
System.outprintln("Value of third side=" +c);
double s;
s=(a+b+c)/2;
double sarea = Math.sqrt(s*(s-a)* (s-b)*(s-c));
System.out.println("Area of the Scalene Triangle =" +sarea);
void area(int a, int b, int h) {
System.out.println("Second Parallel Side of the Trapezium-' +b);
System.out.println("Perpendicular (Distance) between two parallel sides-' +h);
int tarea = h*(a+b)/2;
System.outprintln("Area of Trapezium =" + tarea);
}
void area(double diagonal 1, double diagona12) {
System.outprintln("First Diagonal:" +diagonall);
System.outprintln("Second Diagonal:" +diagonal2);
double rarea = (diagonal 1 *diagonal2)/2;
System.out.println("Area of the Rhombus =" +rarea);
}
}

Question 8.
Using the switch statement, write a menu driven program to calculate the maturity amount of a Bank Deposit.
The user is given the following options:
1. Term Deposit ~
2. Recurring Deposit.
For option 1. accept principal(P), rate of interest(r) and time period in years(n). Calculate and output the maturity amount(A) receivable using the formula:
A = P\(\left[1+\frac{r}{100}\right]^n\)
For option 2. accept Monthly Installment(P), rate of interest(r) and time period in months(n). Calculate and output the maturity amount (A) receivable using the formula:
A = P × n + P × \(\frac{n(n+1)}{2} \times \frac{r}{100} \times \frac{1}{12}\)
For an incorrect option, an appropriate error message should be displayed.
Answer:

import java.io.*;
class BankDeposit {
public static void main(String aigs []) throws
IOException {
int ch;
InputStreamReader read = new InputStreamReader(System.in);
BufferedReader in = new BufferedReader (read);
System.ouLprintln(" 1. Term Deposit");
System.out.println("2. Recurring Deposit");
System.out.println("Enter your choice");
ch = Integer.parseInt(in.readLine( )); switch (ch){
case 1:
System.out.println("Principar);
double p = Integer.parselnt (in.read Line( ));
System.out.println("Rate of Interest");
double r = Integer.parselnt (in.read Line( ));
System.outiprintln("Time");
double t = Integer.parselnt (in.read Line( ));
double a= (p*Math.pow((1+r/100),t));
System.out.println(" Amount is= ₹" +a);
break;

case 2:
System.out.println("Principal");
double p1 = Integer.parselnt (in.read Line( ));
System.out.println("Rate of Interest");
double r1 = Integer.parselnt (in.read Line( ));
System.out.println("Time in months");
double n = Integer.parselnt (in.read Line( ));
double a1 = p1*n + p1*(n*(n + 1)/2)*r1/ 100*1/12;
System.out.println(" Amount is= ₹" +a1);
break;
default:
System.outprintln("Wrong choice");
}
}
}

Question 9.
Write a program to accept the year of graduation from school as an integer value from the user. Using the Binary Search technique on the sorted array of integers given below, output the message “Record exists” if the value of input is located in the array. If not, output the message “Record does not exist”.
{1982, 1987, 1993, 1996, 1999, 2003, 2006, 2007, 2009, 2010} [15]
Answer:

import java.io.*;
class Graduation {
public static void main(String aig[]) throws IOException
{
BufferedReader br = new BufferedReader
(new InputStreamReader(System.in));
inta[] = {1982, 1987, 1993, 1996, 1999, 2003, 2006, 2007, 2009, 2010};
System.out.println("Enter the element to search");
int find = Integer.parseInt(br.readLine());
int index = search(a, find);
if (index !=-l) {
System.out.println("Record exists:" +index);
}
else {
System.out.println("Record does not exist");
}
}
public static int search(int ar[], int find) {
int start = 0;
int end = ar. length - 1;
int mid;
while (start <= end) {
mid = (start + end) / 2;
if (ar[mid] = find) {
return mid;
}
else if (ar[mid] < find) { start = mid+1; } else if (ar[mid] > find) {
end = mid - 1;
}
}
return -1;
}
}