Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2021 Semester 1 is the best way to boost your preparation for the board exams.
ICSE Class 10 Economics Question Paper 2021 Solved Semester 1
Maximum Marks: 40
Time Allowed: One 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 marks intended for questions are given in brackets [ ].
- Select the correct option for each of the following questions.
Question 1.
“If a labourer does not work for a day, his labour for that one day’s work will be lost forever. ” Which characteristic of a labour is expressed in this statement ? [1]
(a) Labour is mobile.
(b) Labour is an active factor.
(c) Labour is perishable.
(d) Labour supply varies over time.
Answer.
(c) Labour is perishable
Question 2.
Which of the following market types has a large number of firms that sell similar but slightly different products ? [1]
(a) Perfect competition.
(b) Oligopoly.
(c) Monopolistic competition.
(d) Monopoly.
Answer:
(c) Monopolistic competition
Question 3.
The system of direct exchange between different commodities and service is known as : [1]
(a) Barter system.
(b) Monetary system.
(c) Banking system.
(d) Market system.
Answer.
(a) Barter system
Question 4.
A substitute good is a good: [1]
(a) Of higher quality than another good.
(b) That is not used in place of one another.
(c) That can be used in place of one another.
(d) Of lower quality than another good.
Answer:
(c) That can be used in place of one another.
Question 5.
The price of cloth can be expressed in terms of money just as it can be expressed in terms of rice. Which function of money is expressed in this statement ? [1]
(a) Medium of exchange.
(b) Measure of value.
(c) Store of value.
(d) Transfer of value.
Answer:
(b) Measure of value
Question 6.
Credit transaction requiring future payments cannot take place smoothly under: [I]
(a) Lack of standard of deferred payment.
(b) Deferred payments.
(c) Bank trading.
(d) Money market.
Answer.
(a) Lack of standard of deferred payment
Question 7.
Firms under …….. are free to enter or leave the industry at any time. [1]
(a) Perfect competition.
(b) Pure oligopoly.
(c) Oligopoly.
(d) Monopoly.
Answer.
(a) Perfect competition
Question 8.
Creation of savings is the ……. stage of capital formation. [1]
(a) First
(b) Second.
(c) Third
(d) Fourth.
Answer:
(a) First.
Question 9.
………. is subject to depreciation. [1]
(a) Land.
(b) Labour.
(c) Capital.
(d) Entrepreneur.
Answer:
(c) Capital
Question 10.
What is meant by derived demand? [1]
(a) The demand is derived from income tastes, etc. of sellers.
(b) The demand is derived from the price elasticity of demand.
(c) If a thing is needed for producing some other goods, which we actually need.
(d) The demand is derived in beginning economics classes.
Answer:
(c) If a thing is needed for producing some other goods, which we actually need.
Question 11.
Which function of an entrepreneur allows him to decide the reward that each factor of production should get? [1]
(a) Innovative function
(b) Distributive junction.
(c) Risk-Bearing.
(d) Decision-Making Function.
Answer:
(c) Risk-Bearing
Question 12.
If the number of firms producing a particular commodity, increases, the market supply of that commodity will …….. [1]
(a) Increase.
(b) Decrease.
(c) Remain constant.
(d) Become negative.
Answer:
(a) Increase
Question 13.
Which of the following is considered as legal tender money?
(a) Currency notes & coins
(b) Drafts & cheques
(c) Credit cards
(d) Debit cards
Answer:
(b) Drafts & cheques
Question 14.
Price of the commodity and quantity supplied of that commodity is ….. related. [1]
(a) Inversely.
(b) Cross.
(c) Negative.
(d) Directly.
Answer:
(d) Directly
Question 15.
The productivity of land is not affected by: [1]
(a) Fertility of land.
(b) Proper use of land.
(c) Government policy
(d) Gender of the worker.
Answer:
(d) Gender of the worker
Question 16.
Increase in the tax on a commodity will lead to ……….. in the supply of the commodity. [1]
(a) Fixing
(b) No change
(c) Increase
(d) Decrease.
Answer:
(d) Decrease
Question 17.
Capital is ………. a means of production. [1]
(a) Income.
(b) Durable.
(c) Produced.
(d) Processed.
Answer.
(d) Produced
Question 18.
In which market form is the firm a price taker? [1]
(a) Money market.
(b) Monopoly.
(c) Perfect competition
(d) Capital Market.
Answer.
(c) Perfect competition
Question 19.
Labour is the only ………. factor of production. [1]
(a) Active.
(b) Passive.
(c) Temporary.
(d) Immobile.
Answer.
(a) Active
Question 20.
Milk can be put to several uses; therefore, it is called as a ……… good. [1]
(a) Composite.
(b) Autonomous.
(c) Direct.
(d) Indirect.
Answer.
(a) Composite.
Question 21.
A differentiated product has: [1]
(a) Many perfect substitutes.
(b) No close substitutes.
(c) Close but not perfect substitute.
(d) No substitute of any kind.
Answer:
(c) Close but not perfect substitute
Question 22.
Barter system is also called as a ……..[1]
(a) D-D economy.
(b) D-C economy.
(c) C-C economy.
(d) C-D economy.
Answer.
(c) C-C economy
Question 23.
……… goods refer to those products which are identical in quality, shape, size, colour etc. [1]
(a) Heterogeneous
(b) Homogeneous.
(c) Differentiated.
(d) Slightly differentiated.
Answer:
(b) Homogeneous
Question 24.
Land is a ……… factor of production. [1]
(a) Temporary.
(b) Permanent.
(c) Active.
(d) Mobile.
Answer:
(b) Permanent
Question 25.
……….. means selling the same product at different prices to different buyers. [1]
(a) Selling
(b) Price making.
(c) Price discrimination
(d) Price taking.
Answer:
(c) Price discrimination
Question 26.
Land as a factor ofproduction, can earn income in the form ……..
(a) Rent
(b) Wages
(c) Capital
(d) Interest
Answer:
(a) Rent
Question 27.
………. of labour is advantageous to workers as it increases their efficiency, mobility and saves their time and tools: [1]
(a) Division.
(b) Addition.
(c) Elasticity.
(d) Inelasticity.
Answer.
(a) Division
Question 28.
Which of the following describes a monopoly firm ? [1]
(a) Single seller.
(b) No barrier to entry.
(c) Many substitutes.
(d) Many sellers.
Answer:
(a) Single seller
Question 29.
The demand for ……… goods will increase with an increase in the consumers income. [1]
(a) Inferior goods.
(b) Substitute goods.
(c) Normal good.
(d) Complementary goods.
Answer:
(c) Normal good
Question 30.
In monopolistic competitive market, the buyers have ……… [1]
(a) Access to several brands.
(b) Liberty to compare various brands.
(c) Imperfect knowledge.
(d) Imperfect choice.
Answer.
(c) Imperfect knowledge
Question 31.
The evolution of money started with this stage ……….. [1]
(a) Commodity money.
(b) Metallic money.
(c) Bank Money.
(d) Animal money.
Answer.
(a) Commodity money
Question 32.
When producers expect price rise in the future, they would like to …….. the present supply of their commodities. [1]
(a) Increase.
(b) Reduce.
(c) Keep constant.
(d) Stop.
Answer.
(b) Reduce
Question 33.
Capital formation cannot occur unless there is …………. [1]
(a) Investment.
(b) Production.
(c) Saving.
(d) Money.
Answer:
(c) Saving
Question 34.
Labourers get …….. for the task they perform whereas an entrepreneur hopes to get ……… for the risk they take in a business. [1]
(a) Rent and profit.
(b) Wage and profit.
(c) Profit and wage.
(d) Wage and interest.
Answer.
(b) Wage and profit
Question 35.
A network of good entrepreneurs will help to generate ….. [1]
(a) Employment opportunities.
(b) Public debt.
(c) Expenditure.
(d) Public expenditure.
Answer:
(a) Employment opportunities
Question 36.
………. is essential for a market to be called as perfect competition. [1]
(a) Large Number of buyers and sellers.
(b) Restricted entry and exit.
(c) No substitutes.
(d) Differentiated goods.
Answer:
(a) Large Number of buyers and sellers
Question 37.
The concentration of textiles in Gujarat and sugar industry in UP are good examples of ……… [1]
(a) Geographical division of labour.
(b) International division of labour.
(c) Simple division of labour.
(d) Horizontal division of labour.
Answer:
(a) Geographical division of labour
Question 38.
As land cannot produce anything by itself, therefore, it is called a ………. factor of production.
(a) Active
(b) Mobile
(c) Durable
(d) Passive
Answer:
(d) Passive
Question 39.
Printing machine is an example of ………. [1]
(a) Circulating capital
(b) Physical capital.
(c) Financial capital.
(d) Production capital.
Answer:
(a) Circulating capital
Question 40.
The wide gap between the rich and poor with reference to income highlights ……… determinant of the market demand. [1]
(a) Population.
(b) Distribution of income.
(c) Income of Consumer
(d) State Policy.
Answer.
(b) Distribution of income