ICSE Class 10 Question Paper 2026 Economics

ICSE | Class 10

Economics
Question Paper 2026

Council for the Indian School Certificate Examinations (CISCE)

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ECONOMICS

Maximum Marks: 80

Time allowed: Two hours

1. Answers to this Paper must be written on the paper provided separately.

2. You will not be allowed to write during the first 15 minutes.

3. This time is to be spent in reading the question paper.

4. The time given at the head of this Paper is the time allowed for writing the answers.

5. Attempt all questions from Section A and any four questions from Section B.

6. The intended marks for questions or parts of questions are given in brackets [ ].

Instruction for the Supervising Examiner

Kindly read aloud the Instructions given above to all the candidates present in the
Examination Hall.

This Paper consists of 11 printed pages and 1 blank page.
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SECTION A (40 Marks)
(Attempt all questions from this Section.)

Question 1 [16]
Choose the correct answers to the questions from the given options.
(Do not copy the question, write the correct answers only.)

(i) When ABC Electronics implemented division of labour, the workers became
more productive. This happened due to ___________.

(a) Rotation

(b) Motivation

(c) Mechanisation

(d) Specialisation

(ii) What will be the elasticity of demand for the given commodity as shown in
the picture?

(a) Elastic

(b) Unit elastic

(c) Inelastic

(d) Perfectly elastic

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(iii) When income increases, the demand for ___________ type of goods will
increase.

(a) Inferior

(b) Giffen

(c) Normal

(d) Inexpensive necessities

(iv) The following supply curve shifts from S1 to S2. It may be due to
___________.

(a) increase in tax

(b) upgradation of technology

(c) rise in the price of inputs

(d) decrease in the number of producers

(v) Statement 1: Income tax, GST, and Custom Duties are examples of Tax
Revenue.
Statement 2: Escheat and Forfeitures are also a part of Tax Revenue.

(a) Both Statements 1 and 2 are true.

(b) Both Statements 1 and 2 are false.

(c) Statement 1 is true, and Statement 2 is false.

(d) Statement 1 is false, and Statement 2 is true.

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(vi) Mr. Raju grows wheat and needs shoes, whereas Mr. Tony who makes
shoes, wants rice. So, they are unable to trade with each other.
Which drawback of barter system is illustrated in this situation?

(a) Lack of Double Coincidence of Wants

(b) Lack of Divisibility

(c) Lack of Common Measure of Value

(d) Problem of Storing Wealth

(vii) Suman is a trained nurse who offers services to a hospital. Once her duty
hours end, she cannot carry forward her unused services to the next day
because:

(a) labour is mobile.

(b) labour is perishable.

(c) labour is not homogeneous.

(d) labour can be separated from the labourer.

(viii) Assertion (A): Commercial Banks accept various types of deposits to meet
the needs of different customers.

Reason (R): Fixed deposits allow customers to deposit money for a
specific period and earn high interest, while current
deposits do not help in earning interest but help in frequent
transactions for businessmen.

(a) (A) is true and (R) is false.

(b) (A) is false and (R) is true.

(c) Both (A) and (R) are true and (R) is the correct explanation of (A).

(d) Both (A) and (R) are true but (R) is not the correct explanation of (A).

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(ix) If iPhone and Samsung Galaxy are considered as substitute goods, then
which of the following pairs is considered as complementary goods?

(a) Coke and Lime Soda

(b) Toothbrush and Toothpaste

(c) Petrol cars and Electric cars

(d) LPG and CNG

(x) Goods like fruits and vegetables are best described as examples of which
type of market form?

(a) Perfect competition

(b) Monopoly

(c) Oligopoly

(d) Monopolistic competition

(xi) Study the relationship in the first pair of words and complete the second
pair:

Right to be Informed : Information about products

Right to Seek Redressal : ___________

(a) Choices of goods available in the market

(b) Awareness about environmental impact

(c) Protection against hoarding

(d) Fair compensation for defective goods and services

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(xii) During the time of inflation, the Central Bank will _________ in order to
stabilise the economy.

(a) buy Government Securities

(b) decrease the Cash Reserve Ratio

(c) sell Government Securities

(d) decrease Statutory Liquidity Ratio

(xiii) In case of cash credit, interest is charged to the borrower on the amount
actually withdrawn from the loan account.

(a) True

(b) False

(xiv) Which of the following is NOT a cause of Cost Push Inflation?

(a) Administered prices

(b) Rise in population

(c) Fluctuation in output and supply

(d) Enhanced taxation

(xv) The Government of India borrows a large sum of money from international
financial institutions to build highways and modernise railway
infrastructure. This situation is an example of:

(a) debt used for productive purpose.

(b) internal debt.

(c) public revenue.

(d) net debt.

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(xvi) In which form of market do both buyers and sellers have accurate and
complete information about market conditions?

(a) Oligopoly

(b) Monopolistic competition

(c) Monopoly

(d) Perfect competition

Question 2

(i) Define the concept of consumer exploitation. [2]

(ii) “Risk bearing is the backbone of entrepreneurship.”

Justify the statement. [2]

(iii) What is meant by the ‘Margin Requirement on secured loans’? [2]

(iv) Which concept is depicted in the given image and explain the concept? [2]

P Q
P Q U
R
U A
R
A I N
I N T
T C I
C I T
E
T Y
E
Y

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Question 3
(i) Explain the meaning of Hyperinflation. [2]

(ii) Outline two primary reasons why economists consider the supply of land to [2]
be fixed.

(iii) Define the term Regressive Tax. [2]

(iv) Observe the image and identify the type of capital it represents. Briefly [2]
explain your answer.

Question 4
(i) State one point of difference between funded debt and unfunded debt. [2]

(ii) The elasticity of demand tends to be higher in the long run than in the short [2]
run.

(a) Do you agree with the statement?

(b) Justify your answer with a reason.

(iii) Ravi deposits ₹ 50,000 in his savings account in a commercial bank. The [2]
bank uses a part of this money to give loan to another customer. This process
is repeated with other depositors and borrowers.

(a) Identify whether Ravi’s deposit is primary or derivative.

(b) Give a reason for your choice.

(iv) How is the Veblen Effect an exception to the law of demand? [2]

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SECTION B (40 Marks)
(Attempt any four questions from this Section.)

Question 5
(i) ‘Land is one of the most important factors of production.’ [5]
In this context, explain the factors that affect the productivity of land.

(ii) State any five differences between Commercial Bank and Central Bank. [5]

Question 6
(i) Analyse the image of the market given below: [5]

Current
Dominant
Supplier

MARKET

Prospective Buyers
Suppliers

(a) Identify the type of market referred to in the given image.

(b) Explain any three characteristics of the identified market.

(ii) State and explain any five characteristics of Capital. [5]

Question 7
(i) (a) Define barter system of exchange. [5]

(b) List the last three stages in the evolution of money.

(ii) With the help of a graph, explain the contraction of demand. [5]

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Question 8

(i) (a) What is Public Expenditure? [5]

(b) State and explain any three merits of direct tax.

(ii) How are consumers exploited by retailers? [5]

Question 9

(i) (a) Define the term demand. [5]

(b) Complete the following market demand schedule.

Price of Demand by Demand by Demand by
Market
tomato Consumer A Consumer B Consumer C
demand (kg
(₹ per (kg per (kg per (kg per
per month)
kg) month) month) month)

10 2 6 8 I. ________

8 4 II. ________ 9 20

6 8 9 III. ________ 27

(ii) With reference to elasticity of supply, name and draw a neatly labelled [5]
diagram to show:

(a) Es < 1

(b) Es = 1

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Question 10
(i) (a) Define Public Debt. [5]

(b) Explain any three causes of growth of Public Expenditure.

(ii) Read the extract and answer the questions that follow: [5]

As the economy experiences rapid growth, consumers' disposable incomes
rise, and they become more willing to spend on goods and services. This
leads to upward pressure on prices, particularly in sectors where supply is
limited.

(a) Identify the type of inflation described in the above extract.

(b) Briefly explain the nature of the inflation mentioned in (a).

(c) State and explain any three causes of the type of inflation discussed
above.

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