Solving ICSE Class 10 Economics Previous Year Question Papers ICSE Class 10 Economics Question Paper 2022 Semester 2 is the best way to boost your preparation for the board exams.
ICSE Class 10 Economics Question Paper 2022 Solved Semester 2
Maximum Marks: 40
Time allowed: One and a half 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.
Choose the correct answers to the questions from the given options. (Do not copy the question. Write the correct answer only.) [10]
(i) The debt that does not yield income to the government is called as:
(a) Productive
(b) Unproductive
(c) Lateral
(d) Standard
Answer:
(b) Unproductive
(ii) WPI stands for:
(a) Wholesale Print Index
(b) Wholesale Point Index
(c) Wholesale Price Index
(d) Whole Point Index
Answer:
(c) Wholesale Price Index
(iii) Revenue expenditure is in nature.
(a) Non-recurring
(b) Recurring
(c) Simple
(d) Complex
Answer:
(b) Recurring
(iv) Income tax is an example of:
(a) Direct tax
(b) Indirect tax
(c) Social tax
(d) Goods and service tax
Answer:
(a) Direct tax
(v) When the rate of inflation is between 10% – 20% per annum then it is ………. stage of inflation.
(a) Running
(b) Hyper
(c) Creeping
(d) Slow
Answer:
(a) Running
(vi) The sum total of all debt is called as …….
(a) Redeemable debt
(b) Irredeemable debt
(c) Net debt
(d) Gross debt
Answer:
(d) Gross debt
(vii) The revenue derived by the government from public enterprises is also known as :
(a) Commercial revenue
(b) Administrative revenue
(c) Socially desired tax
(d) Local tax
Answer:
(b) Administrative revenue
(viii) Bureau of Indian Standards (BIS) is a ……. of the government to protect the consumers from exploitation by retailers or producers.
(a) Commercial measure
(b) Administrative measure
(c) Technical measure
(d) Welfare measure
Answer:
(c) Technical measure
(ix) The other name for demand deposit is
(a) Saving deposit
(b) Current deposit
(c) Posting account
(d) Time deposit
Answer:
(a) Saving deposit
(x) ……… is also called as the Lender of Last Resort.
(a) Commercial bank
(b) Central bank
(c) Canara bank
(d) Federal bank
Answer:
(b) Central bank
Section – B
(Attempt any three questions from this Section.)
Question 2.
(i) Define the term public finance. [2]
(ii) What does consumer awareness mean? [2]
(iii) Write three differences between commercial and central bank. [3]
(iv) (a) What is food adulteration? [3]
(b) Mention any two harmful effects of food adulteration.
Answers :
(i) Public finance is a study of income and expenditure of the government at the central, state and local levels.
(ii) Consumer awareness is the knowledge that a consumer should have about his/her legal 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 the consumer is not exploited by the seller of the products.
(iii)
|
Central Bank |
Commercial Bank |
| (i) Central Bank functions as the apex bank of the country. It is a bank of all the banks | (i) Commercial banks functions according to the rule 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 functions according to the rule and regulations stipulated by the central bank. |
| (iii) Central Bank is the sole authority of note issuing. | (iii) Commercial banks contribute to the flow of money only by a way of credit creation. |
(iv) (a) Food adulteration refers to lowering of the quality of food by adding cheap, inferior substances to it. It also means removing an important part of the food item.
(b) Adulterated foods can cause health problems such as stomach ache, vomiting and diarrhea. If pregnant mothers consume adulterated food, foetus abnormalities take place. Kidney stones and levions in liver are caused by consuming adulterated food.
Question 3.
(i) Mention the two sources of public revenue. [2]
(ii) Explain the meaning of savings deposits. [2]
(iii) Discuss any three causes of cost push inflation. [3]
(iv) Explain any three duties of a consumer. [3]
Answers:
(i) Non-Tax Revenue and Tax Revenue.
(ii) The kind of account is opened by banks with the objective of collecting small savings from the people who have small earnings, and deposit, in small amounts as they like, but the withdrawals are allowed, thrice a week only. However, the rate of interest is less than that on fixed deposits.
(iii)
1. Fluctuations in Output and Supply: The wide fluctuations in production of food grains has been mainly responsible for price rise. There was a remarkable increase in production of food grains during first two plans and supply of food grains was good. But fluctuation in food grain production, support prices administered by Government, the tactics of hoarding, adopted by the middlemen and subsequently by the farmers too (utilizing the credit facilities available from co-operatives and commercial banks), resulted in an increase in price. The power breakdowns, strikes and lockouts result in lower production of manufactured goods. As such both, the primary and secondary sectors recorded a price rise almost during all the plan periods.
2. Public Distribution System: The defective working of the public distribution system results in an uneven supply of various goods, ultimately affecting the prices of essential commodities by way of artificial scarcity.
3. Rise in Wages: The rise in the general price level raises the cost of living which, in turn, leads to demand for higher wages by workers. When the demand for higher wages is met, it will lead to further rise in costs or prices. The fresh rise in prices will again be compensated by giving still higher wages to the workers. This is termed as ‘wage push inflation’.
(iv) Following are the three duties of a consumer:
- To check the Maximum Retail Price of the product. A consumer must not pay a price more than MRP.
- Take a proper bill of the purchase.
- If the product is found defective or non-performing then take up the matter first with the manufacturer and then with the courts if not resolved by the manufacturer.
Question 4.
(i) Mention any two examples of administrative revenue. [2]
(ii) What does COPRA stand for? [2]
(iii) Why has the public expenditure increased in recent times? Give any three reasons. [3]
(iv) Explain any three rights of a consumer. [3]
Answers :
(i)
(a) Fee
(b) Fine
(ii) Consumer Protection Act – 1986.
(iii) 1. Developmental Work: Modem State has also taken up developmental work in addition to their primary functions of administration and defense. For example, the Central and State Governments in India perform a large variety of developmental functions. In fact, sustained efforts are being made to bring about the all-round development of the economy under the Five Year Plans.
2. 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.
3. Increase in Population: As a result, the Government has to incur great expenditure to meet the requirements of increasing population. In fact, the public expenditure increases in the same ratio in which the population increases.
(iv)
- The right to be protected against marketing of goods which are hazardous to life and property.
- The right to be informed about the quality, quantity, potency, purity standard and price of goods to protect the consumers against unfair trade practices.
- The right to be assured wherever possible, of access to a variety of goods at competitive prices.
Question 5.
(i) Explain the term proportional tax. [2]
(ii) What does food basket mean with reference to inflation? [2]
(iii) Explain any three ways how consumers are exploited by the retailers? [3]
(iv) (a) Define the term demand pull inflation. [3]
(b) Explain any two causes of demand-pull inflation.
Answers:
(i) Taxes in which the rate of tax remains constant. Though the tax base changes, are called proportional taxes. Here, the tax base may income, money value of property, wealth, or goods, etc. Income is, however, regarded as the main tax base, because it is the determinant of taxable capacity of a person. Tax amount is calculated by multiplying tax rate with tax rate with tax base.
In a proportional tax system, thus, taxes vary in direct proportion to the change in income. If income is doubled, the tax amount is also double.
(ii) A basket of goods refers to a fixed set of consumer products and services valued on an annual basis. The basket is used to track inflation in a specific market or country. The goods in the basket are often adjusted periodically to account for changes in consumer habits.
(iii)
- Underweight and Under measurements: The goods being sold in the market are sometimes not measured or weighed correctly.
- Sub-standard Quality: The goods sold are sometimes of sub-standard quality. Selling of consumables beyond their expiry dates and supply of deficient or defective home appliances are generally the regular grievances of consumers. This also includes the sales of medicines after expiry date, and selling spurious drugs (sub-standard drags).
- High Prices: Very often the traders charge a price higher than the prescribed retail price.
(iv) (a) Demand-pull inflation occurs when the demand for goods and services exceeds the supply available at existing prices, i.e., when there is excess demand for goods and services.
(b)
- Increase in Public Expenditure or increase in Government Deficit: Government deficit increases when the public expenditure increases and the government falls to mobilize sufficient funds to meet its expenditure.
- Increase in Income: With the increased income of people, rises the demand for their goods, and services and hence their prices.
Question 6.
(i) Explain the term consumer price index. [2]
(ii) What is the impact of inflation on wages and salaried class people? [2]
(iii) Give any three points of difference between direct and indirect tax. [3]
(iv) (a) Define inflation. [3]
(b) What does creeping inflation mean?
Answers:
(i) Consumer price index is referred to as that index that is used in calculating the retail inflation in the economy by tracking the changes in prices of most commonly used goods and services.
In other words, the consumer price index calculates the changes in price of a common basket of goods and services. It is also called a market basket and is used for calculating the price variations in fixed items.
(ii) Labour is the lowest paid class. This class is badly affected by inflation, especially if the prices of the basic necessities of life rise steeply, thus adversely affecting the family budget of the working class. Their consumption level goes down tolling upon their health and lowering their efficiency. It may also create unrest. No doubt, through trade unions, workers may manage to get increased dearness allowance but this does not provide them with desired relief. For price hike generally precedes any increase in dearness allowance. In turn, the increased wages further push up the price level owing to an increased demand. A vicious circle is formed, resulting in wage-push or cost push inflation.
(iii)
| Direct Tax |
Indirect Tax |
| 1. The burden of direct tax falls on the person who makes the payment to the government. | 1. Indirect taxes are those which are paid to the government by one person but their burden is borne by another person’s. |
| 2. Direct taxes cannot be shifted. | 2. Indirect taxes can be shifted to other persons. |
| 3. Direct taxes are generally progressive. Their real burden is more on the rich. | 3. Indirect taxes are generally regressive. Their real burden is more on the poor. |
(iv) (a) Inflation means an increase in the cost of living as the price of goods and services rise.
(b) Creeping inflation occurs when there is a sustained rise in prices over time at a mild rate, say around 2 to 3 percent 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.