ICSE Class 10 Question Paper 2025 Economics

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) In economics, what does the capital earn as income?

(a) Wages

(b) Rent

(c) Profit

(d) Interest

(ii) Which of the following are examples of substitute goods?

(a) Coke and Coffee

(b) Pencil and Eraser

(c) Tea and Sugar

(d) Apple iPhones and Samsung Smart Phones

(iii) Assertion (A): Mr. Gupta earns a fixed income every month, but he tends
to get adversely affected during inflation.

Reason (R): The prices of goods, services and the cost of living, does
not rise in the same proportion as income, during inflation.

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

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

(c) Both (A) and (R) are false.

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

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(iv) Amit buys 1 kg of mangoes at ₹120 per kg. Other things remaining constant,
when the price of mangoes falls to ₹90 per kg, he buys 2 kg of mangoes.
Amit’s choice in the given situation shows which concept?

(a) Demand schedule

(b) Market demand

(c) Contraction of demand

(d) Expansion of demand

(v) The rate of tax, which is uniform for all the taxpayers, is termed as:

(a) Progressive

(b) Proportional

(c) Regressive

(d) Direct

(vi) Which factor will be responsible for ‘product diversification’ through
innovation?

(a) Labour

(b) Entrepreneur

(c) Capital

(d) Landowner

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(vii) Statement 1: The primary function of money is to act as a ‘store of value’.

Statement 2: Money helps in monetary expression of the market value of
the commodity.

(a) Both Statement 1 and Statement 2 are true.

(b) Both Statement 1 and Statement 2 are false.

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

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

(viii) BIS stands for:

(a) Bureau of Indian States

(b) Bureau of Indian Standards

(c) Bureau of Indian System

(d) Bureau of Indian Solutions

(ix) Study the table and examine the relation between price and quantity
supplied:

Price (₹) Quantity
supplied (kgs)
10 5
12 7
14 9

(a) Positive

(b) Negative

(c) Indirect

(d) Proportional

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(x) Which market structure has the least number of sellers?

(a) Oligopoly

(b) Monopolistic competition

(c) Monopsony

(d) Perfect competition

(xi) Direct taxes are regressive in nature.

(a) True

(b) False

(xii)
Mobilisation
Savings Investment
of savings

The above image depicts stages of ___________.

(a) Capital formation

(b) Capital returns

(c) Capital movement

(d) Investment of savings

(xiii) Radhika cannot postpone her demand for woollen clothes during winter
season but at the same time can postpone her demand for a car. This is
because her demand for woollen clothes is:

(a) Elastic

(b) Inelastic

(c) Highly Elastic

(d) Unit Elastic

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(xiv) Study the relationship in the first pair of words and complete the second pair.

1. Revenue earned by the government through railway fares : Commercial
revenue

2. Revenue earned through Special Assessment : ___________

(a) Direct tax

(b) Indirect tax

(c) Administrative

(d) Commercial

(xv) Efficiency of labour shows the productive capacity of a labourer, whereas
division of labour shows __________ of labour.

(a) Specialisation

(b) Utilisation

(c) Quantity

(d) Perishability

(xvi) Identify the type of debt raised by the government for organising relief
camps during natural disasters.

(a) Productive

(b) Unproductive

(c) Gross

(d) Funded

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Question 2

(i) Explain capital as a factor of production. [2]

(ii) There is a positive correlation between entrepreneurship and economic
[2]
development.
Justify the statement with two suitable reasons.

(iii) What is extension of supply? [2]

(iv) [2]

Identify and explain the type of division of labour shown in the above images.

Question 3
(i) How was Standard of Deferred payment a problem for Barter System of [2]
Exchange?

(ii) The following image shows, ‘Tolls as a source of revenue for State as well [2]
as Central government.’
Identify and explain the type of revenue mentioned in the above statement.

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(iii) State one difference between Cash Reserve Ratio (CRR) and Statutory [2]
Liquidity Ratio (SLR).

(iv) Explain the term revenue expenditure. [2]

Question 4
(i) ‘Mobile phone and laptop are examples of composite demand.’ [2]
Justify the statement with a suitable reason.

(ii) Why is capital considered to be ‘result of past savings’? [2]

(iii) What is the implication of ‘restricted entry of new firms’ in a monopoly [2]
market?

(iv) A shopkeeper adds brick powder to chilli powder and he colours different [2]
vegetables with harmful dyes to make them look bright and fresh.
Identify the concept expressed in the above statement and mention the
consumer right which has been violated.

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

Question 5
(i) (a) Define inflation. [5]

(b) Write any three causes of ‘Cost Push Inflation’.

(ii) State and explain any five merits of Indirect taxes. [5]

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Question 6
(i) The following table represents increase in demand, answer the following [5]
questions:

Price (₹) Quantity demanded
(kgs)
10 5

10 7

(a) Give a diagrammatic representation based on the above data.

(b) Explain any two factors that affect increase in demand.

(ii) (a) Mention any two features of COPRA 2019. [5]

(b) State and explain any three reasons why consumers are exploited by
retailers or producers.

Question 7

(i) RBI's latest demonetisation measure was declared on 19th May 2023. As per [5]
RBI’s 'clean note' policy, it withdrew all ₹2,000 notes from circulation.

In context of the above statement answer the following questions:

(a) What is demonetisation?

(b) State any three objectives of demonetisation.

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(ii) [5]

Source: wordpress.com

(a) Identify and define the market structure depicted in the above image.

(b) Give three differences between Perfect Competition Market and
Oligopoly market.

Question 8
(i) (a) Explain the term supply. [5]

(b) Give a diagrammatic representation of Relatively Elastic Supply.

(ii) Explain any five characteristics of land. [5]

Question 9
(i) (a) Explain the overdraft facility given by a commercial bank. [5]

(b) State any three differences between Demand deposits and Fixed
deposits.

(ii) Explain any five determinants affecting demand for goods. [5]

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Question 10
(i) What factors contribute to the lower efficiency of labour in India as [5]
compared to the developed nations?

(ii) Read the extract and answer the following questions. [5]

The Central Bank of a country is called ‘central’ because it is the apex
institution of the entire banking system of the country. The Central Bank has
a very important role in ‘stabilising’ the economy. All the other banks in the
economy are subject to control from this bank. The Central Bank itself is
subject of the overall control of the government.

(a) ‘RBI provides a convenient and economical device for settling
interbank claims.’
Justify the statement with a valid reason.

(b) Why is Central Bank called as a ‘Lender of last resort’?

(c) What is bank rate?

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