ICSE Class 10 Exam 2024-25 : Economics Most Important Questions Answers for Last-Minute Revision

ICSE Class 10 exams are going on and you have very little time left for the Economics exam. Therefore, we are providing important questions in this article. You can study these thoroughly and score good marks in your exams.

To help you make your preparation effective, we have compiled a list of important questions with detailed explanations.

These questions for ICSE Class 10 Economics exam cover various topics from the syllabus.

ICSE Class 10th Economics Exam 2025 Most Important Questions

Multiple Choice Questions

1. The ____________ has to decide the reward for each factor of production.

(a) Organiser

(b) Worker

(c) Consumer

(d) Entrepreneur

Answer. (d) Entrepreneur

2. Capital expenditure is ____________ in nature.

(a) Recurring

(b) Non recurring

(c) Positive

(d) Persuasive

Answer. (b) Non recurring

3. As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:

(a) Move upward along the same demand curve

(b) Move downward along the same demand curve

(c) The demand curve will shift to the right

(d) The demand curve will shift to the left

Answer. (d) The demand curve will shift to the left

4. If you make investments in insurances or mutual funds, then it will be called as ____________ type of capital.

(a) Investment

(b) Financial

(c) Physical

(d) Profitable 

Answer. (b) Financial

5. Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.

Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.

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

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

(c) A is true but R is false

(d) A is false but R is true

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

6. Study the relationship in the first pair of words and complete the second pair.

1. Creeping inflation: The rate of inflation is 1% to 2% per annum

2. Running inflation: The rate of inflation is ____________ per annum.

(a) 3% to 6%

(b) 20% to 100%

(c) 30% to 40%

(d) 10% to 20%

Answer. (d) 10% to 20%

7. 'Money helps to express the monetary value of goods and services in the market'.

On the basis of the given statement, Identify the function performed by money.

(a) Medium of exchange

(b) Store of value

(c) Measure of value

(d) Transfer of value

Answer. (c) Measure of value

8.

Identify the type of market structure represented by the visuals.

(a) Monopoly

(b) Perfect market

(c) Government market

(d) Oligopoly market

Answer. (d) Oligopoly market

9. Ms. Sakshi, who teaches economics, discussed the 'minimum percentage of total deposits that commercial banks must maintain with the Central Bank according to current regulations'. Select the correct term that defines this concept from the following choices.

(a) Cash reserve ratio

(b) Repo rate

(c) Bank rate

(d) Statutory liquidity ratio

Answer. (a) Cash reserve ratio

10. Which factor out of the following serves as the primary source of consumption?

(a) Land

(b) Labour

(c) Capital

(d) Entrepreneur

Answer. (b) Labour

11. Statement 1: The Bank Rate policy of the central bank is a traditional method of credit control.

Statement 2: The method used by the central bank to influence the total volume in the banking system is a quantitative method of credit control.

(a) Statement 1 is true and Statement 2 is false

(b) Statement 1 is false and Statement 2 is true

(c) Both Statements 1 and 2 are true.

(d) Both Statements 1 and 2 are false.

Answer. (c) Both Statements 1 and 2 are true.

12. Identify the factor that affects market demand from the options below:

(a) Price of jointly produced goods

(b) Consumer Credit Facility

(c) Income of the consumer

(d) Government policy

Answer. (d) Government policy

13. In perfect competition the sellers are selling ____________ products.

(a) Identical

(b) Different

(c) Unique

(d) Inexpensive

Answer. (a) Identical

14. During barter exchange the rate of exchange was arbitrarily fixed.

This resulted from ____________ .

(a) Lack of common measure of Value

(b) Lack of divisibility

(c) Problem of storing wealth

(d) Problem of deferred payment

Answer. (a) Lack of common measure of Value

15. Indian farmers are an example of ____________ type of labour.

(a) Process based

(b) Monopoly based

(c) Product based

(d) Complex based

Answer. (c) Product based

16. "Does a shirt priced at Rs. 300 exemplify the store of value function of money? Select the appropriate option:

(a) True

(b) False

Answer. (b) False

Short Answer Questions

17. Give any two examples of direct tax.

Answer. Income tax, Corporate tax

18. 'Specialization of labour helps the producers in their productive activities and is also beneficial to the workers'. Justify the statement with two suitable reasons.

Answer. 

Producers: Less cost of production, quick production

Workers: Saving of time and tool, Right man at the right job

19. Define the term demand.

Answer. The willingness of a consumer to buy a commodity at a given price and at a given time.

20. In the realm of economic development, how does the role of entrepreneurs impact the overall growth and stability of a nation.

Answer. Increases employment opportunities, helps in capital formation

21. Explain the term elasticity of demand.

Answer. It is the ratio between the percentage change in demand and percentage change in price.

22. Ram an employee and Shyam an elderly citizen was travelling by train from Delhi to Chennai separately. However, the cost of their tickets is different. Give reasons for the railways charging different prices to different customers.

Answer. Railways is a monopoly market and since they practise price discrimination, they charge different prices to different customers.

23. Under what conditions does the supply of good exhibit unitary elasticity?

Answer. When percentage change in quantity supplied is equal to percentage change in supply.

Long Answer Questions

24. Explain any five demerits of direct tax.

Answer. Unpopular, Inconvenience, Possibility of evasion, Uneconomical, Arbitrary, Narrow in scope

25. In the context of the sudden increase in consumer groups in India due to heightened awareness and instances of exploitation by private traders, what are the key duties and responsibilities that consumers should be mindful of to actively contribute to the consumer movement in the country?

Answer. Duties of a consumer: Check expiry date, ask for cash memo, check for standardisation mark

26. Differentiate between Commercial and Central bank (five points).

Answer. Differentiate on the basis of: Meaning, objective, ownership, note issue, banker, number, credit

27. Differentiate between extension and contraction of demand.

Answer. Differentiate on the basis of Meaning, Hypothetical schedule, Demand curve, cause.

28. Explain the determinants of supply?

Answer. Price, Prices of factors of production, Goals of the firm

29. The following table shows the demand schedule for 3 consumers in a market.

Based on the above hypothetical schedule, answer the following questions:

(a) What is the demand of Consumer 3 priced at Rs 10 (i)?

(b) What is the demand of Consumer 2 priced at Rs 8 (ii)?

(c) Calculate the total market demand priced at Rs 4 (iii).

(d) From the above given table, examine the relationship between price and demand.

(e) Mention any one exception to the law of demand.

Answer. 

(a) 3 kgs

(b) 3 Kgs

(c) 15 kgs

(d) Demand and price have an inverse relationship.

(e) Giffen goods, Ignorance....

30. Read the extract and answer the following questions.

Shruti and her friends have an idea to start selling makeup kits. They already have saved money for the merchandise, models and displays. Since they all own the company, they will work for free.

(a) Name the factor of production which is not mentioned.

(b) Explain any four characteristics of the above (a) factor of production.

Answer. 

(a) Land

(b) Characteristics of land to be explained in detail.

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