ICSE Economics Sample Paper - 2024 | ICSE Humanities Class 12 Sample Papers PDF Download

 Page 1


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
1 
ECONOMICS 
---------------------------------------------------------------------------------------------------- 
Maximum Marks: 80 
Time Allowed: Three Hours 
(Candidates are allowed additional 15 minutes for only reading the paper. 
They must NOT start writing during this time.) 
--------------------------------------------------------------------------------------------------- 
Answer all questions in Section A, Section B and Section C. 
Section A consists of objective / very short answer questions. 
Section B consists of short answer questions. 
Section C consists of long answer questions. 
The intended marks for questions or parts of questions are given in brackets [ ]. 
--------------------------------------------------------------------------------------------------------------------- 
SECTION A – 16 MARKS 
Question 1  
(i) Refer to the graph given below and determine the behaviour of TU as MU 
decreases up to the point ‘b’. 
[1] 
  
 
 
 
 
 
 
 (a) TU increases up to a limit and remains positive.  
 (b) TU increases at an increasing rate          
 (c) TU increases at a diminishing rate.           
 (d) TU is at a point of satiety.  
Figure 1 
Utility 
O 
b 
MU 
Units 
TU 
Page 2


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
1 
ECONOMICS 
---------------------------------------------------------------------------------------------------- 
Maximum Marks: 80 
Time Allowed: Three Hours 
(Candidates are allowed additional 15 minutes for only reading the paper. 
They must NOT start writing during this time.) 
--------------------------------------------------------------------------------------------------- 
Answer all questions in Section A, Section B and Section C. 
Section A consists of objective / very short answer questions. 
Section B consists of short answer questions. 
Section C consists of long answer questions. 
The intended marks for questions or parts of questions are given in brackets [ ]. 
--------------------------------------------------------------------------------------------------------------------- 
SECTION A – 16 MARKS 
Question 1  
(i) Refer to the graph given below and determine the behaviour of TU as MU 
decreases up to the point ‘b’. 
[1] 
  
 
 
 
 
 
 
 (a) TU increases up to a limit and remains positive.  
 (b) TU increases at an increasing rate          
 (c) TU increases at a diminishing rate.           
 (d) TU is at a point of satiety.  
Figure 1 
Utility 
O 
b 
MU 
Units 
TU 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
2 
(ii) GST has been imposed at the rate of 5% both on edible oil and a few spices. In 
this situation, the supply curve of edible oil will: 
[1] 
 (a) shift leftward.  
 (b) shift rightward.  
 (c) not change its position.   
 (d) slope downward.  
(iii) Identify the good that has a direct price-demand relationship.  [1] 
 (a) Giffen Good   
 (b) Complementary Good   
 (c) Normal Good   
 (d) Inferior Good   
(iv) How would rational consumers react to a situation when the price of the car 
remains constant but the price of the petrol increases? 
[1] 
 (a) They would tend to buy less cars.  
 (b) They would tend to buy more cars.  
 (c) They would not react to the situation.  
 (d) They would wait for the price of petrol to come down.  
(v) Which type of tax discourages people from making more money as it can lead to 
class warfare and individuals hiding income or assets? 
[1] 
 (a) A small percentage of tax charged on an individual’s income.  
 (b) A fixed percentage of tax charged on an individual’s income.  
 (c) Tax charged at a decreasing rate when income of the individual 
increases. 
 
 (d) Tax charged at an increasing rate when income of the individual 
increases. 
 
 
Page 3


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
1 
ECONOMICS 
---------------------------------------------------------------------------------------------------- 
Maximum Marks: 80 
Time Allowed: Three Hours 
(Candidates are allowed additional 15 minutes for only reading the paper. 
They must NOT start writing during this time.) 
--------------------------------------------------------------------------------------------------- 
Answer all questions in Section A, Section B and Section C. 
Section A consists of objective / very short answer questions. 
Section B consists of short answer questions. 
Section C consists of long answer questions. 
The intended marks for questions or parts of questions are given in brackets [ ]. 
--------------------------------------------------------------------------------------------------------------------- 
SECTION A – 16 MARKS 
Question 1  
(i) Refer to the graph given below and determine the behaviour of TU as MU 
decreases up to the point ‘b’. 
[1] 
  
 
 
 
 
 
 
 (a) TU increases up to a limit and remains positive.  
 (b) TU increases at an increasing rate          
 (c) TU increases at a diminishing rate.           
 (d) TU is at a point of satiety.  
Figure 1 
Utility 
O 
b 
MU 
Units 
TU 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
2 
(ii) GST has been imposed at the rate of 5% both on edible oil and a few spices. In 
this situation, the supply curve of edible oil will: 
[1] 
 (a) shift leftward.  
 (b) shift rightward.  
 (c) not change its position.   
 (d) slope downward.  
(iii) Identify the good that has a direct price-demand relationship.  [1] 
 (a) Giffen Good   
 (b) Complementary Good   
 (c) Normal Good   
 (d) Inferior Good   
(iv) How would rational consumers react to a situation when the price of the car 
remains constant but the price of the petrol increases? 
[1] 
 (a) They would tend to buy less cars.  
 (b) They would tend to buy more cars.  
 (c) They would not react to the situation.  
 (d) They would wait for the price of petrol to come down.  
(v) Which type of tax discourages people from making more money as it can lead to 
class warfare and individuals hiding income or assets? 
[1] 
 (a) A small percentage of tax charged on an individual’s income.  
 (b) A fixed percentage of tax charged on an individual’s income.  
 (c) Tax charged at a decreasing rate when income of the individual 
increases. 
 
 (d) Tax charged at an increasing rate when income of the individual 
increases. 
 
 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
3 
(vi) Which one of the following best illustrates leakages in the circular flow of 
income? 
[1] 
 (a) Investment   
 (b) Export earning  
 (c) Savings by households   
 (d) Government expenditure   
(vii) A firm’s demand curve shows highest elasticity in: [1] 
 (a) Monopoly market.  
 (b) Perfectly Competitive market.  
 (c) Monopolistic competitive market.  
 (d) Oligopoly market.  
(viii) Identify the equilibrium of the firm in the graph given below: [1] 
  
 
 
 
 
 
 
 
 (a) T is the equilibrium point at which firm enjoys supernormal profit.  
 (b) K is the equilibrium point when firm faces losses.  
 (c) T is the equilibrium point causing normal profit to the firm.  
 (d) K indicates equilibrium which reveals zero profit to the producer 
 
 
Figure 2 
T 
• 
• 
Cost & 
Revenue 
P 
O 
Output 
AR=MR 
K 
AC 
MC 
Page 4


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
1 
ECONOMICS 
---------------------------------------------------------------------------------------------------- 
Maximum Marks: 80 
Time Allowed: Three Hours 
(Candidates are allowed additional 15 minutes for only reading the paper. 
They must NOT start writing during this time.) 
--------------------------------------------------------------------------------------------------- 
Answer all questions in Section A, Section B and Section C. 
Section A consists of objective / very short answer questions. 
Section B consists of short answer questions. 
Section C consists of long answer questions. 
The intended marks for questions or parts of questions are given in brackets [ ]. 
--------------------------------------------------------------------------------------------------------------------- 
SECTION A – 16 MARKS 
Question 1  
(i) Refer to the graph given below and determine the behaviour of TU as MU 
decreases up to the point ‘b’. 
[1] 
  
 
 
 
 
 
 
 (a) TU increases up to a limit and remains positive.  
 (b) TU increases at an increasing rate          
 (c) TU increases at a diminishing rate.           
 (d) TU is at a point of satiety.  
Figure 1 
Utility 
O 
b 
MU 
Units 
TU 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
2 
(ii) GST has been imposed at the rate of 5% both on edible oil and a few spices. In 
this situation, the supply curve of edible oil will: 
[1] 
 (a) shift leftward.  
 (b) shift rightward.  
 (c) not change its position.   
 (d) slope downward.  
(iii) Identify the good that has a direct price-demand relationship.  [1] 
 (a) Giffen Good   
 (b) Complementary Good   
 (c) Normal Good   
 (d) Inferior Good   
(iv) How would rational consumers react to a situation when the price of the car 
remains constant but the price of the petrol increases? 
[1] 
 (a) They would tend to buy less cars.  
 (b) They would tend to buy more cars.  
 (c) They would not react to the situation.  
 (d) They would wait for the price of petrol to come down.  
(v) Which type of tax discourages people from making more money as it can lead to 
class warfare and individuals hiding income or assets? 
[1] 
 (a) A small percentage of tax charged on an individual’s income.  
 (b) A fixed percentage of tax charged on an individual’s income.  
 (c) Tax charged at a decreasing rate when income of the individual 
increases. 
 
 (d) Tax charged at an increasing rate when income of the individual 
increases. 
 
 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
3 
(vi) Which one of the following best illustrates leakages in the circular flow of 
income? 
[1] 
 (a) Investment   
 (b) Export earning  
 (c) Savings by households   
 (d) Government expenditure   
(vii) A firm’s demand curve shows highest elasticity in: [1] 
 (a) Monopoly market.  
 (b) Perfectly Competitive market.  
 (c) Monopolistic competitive market.  
 (d) Oligopoly market.  
(viii) Identify the equilibrium of the firm in the graph given below: [1] 
  
 
 
 
 
 
 
 
 (a) T is the equilibrium point at which firm enjoys supernormal profit.  
 (b) K is the equilibrium point when firm faces losses.  
 (c) T is the equilibrium point causing normal profit to the firm.  
 (d) K indicates equilibrium which reveals zero profit to the producer 
 
 
Figure 2 
T 
• 
• 
Cost & 
Revenue 
P 
O 
Output 
AR=MR 
K 
AC 
MC 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
4 
(ix) Assertion: Price discrimination is possible only in a monopoly market. 
Reason: AR curve of a monopoly firm exhibits the market demand for the 
commodity. 
[1] 
 (a) Both Assertion and Reason are true, and Reason is the correct 
explanation for Assertion. 
 
 (b) Both Assertion and Reason are true, but Reason is not the correct 
explanation for Assertion. 
 
 (c) Assertion is true and Reason is false.  
 (d) Both Assertion and Reason are false.  
(x) In an economy, how much additional investment should be generated in the 
private sector to raise national income by ? 450 Cr. while MPC is 0·6? 
[1] 
(xi) How does an increase in national income affect the income-elastic investment in 
the economy? 
[1] 
(xii) An economy can have a fiscal deficit without a revenue deficit. Give one reason 
to support this statement.  
[1] 
(xiii) State whether the following is True or False. Give one reason for your answer. 
Change in inventory is a stock concept. 
[1] 
(xiv) State any one difference between Perfect competition and Monopolistic 
competition. 
[1] 
(xv) Full employment does not necessarily imply zero unemployment. Justify. [1] 
(xvi) How is deflationary gap generated in the economy? [1] 
SECTION B – 32 MARKS 
Question 2  
(i) It is claimed that Artificial Intelligence can help the manufacturing industries 
improve their efficiency. 
How will this impact the supply of the product by the manufacturing industries? 
Show the impact with the help of a diagram.  
[2] 
(ii) The market demand for a commodity at ? 8 per unit is 100 units. The price rises 
and as a result, its market demand falls to 75 units. Find out the new price of the 
commodity if the price elasticity of demand is -1. 
[2] 
Page 5


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
1 
ECONOMICS 
---------------------------------------------------------------------------------------------------- 
Maximum Marks: 80 
Time Allowed: Three Hours 
(Candidates are allowed additional 15 minutes for only reading the paper. 
They must NOT start writing during this time.) 
--------------------------------------------------------------------------------------------------- 
Answer all questions in Section A, Section B and Section C. 
Section A consists of objective / very short answer questions. 
Section B consists of short answer questions. 
Section C consists of long answer questions. 
The intended marks for questions or parts of questions are given in brackets [ ]. 
--------------------------------------------------------------------------------------------------------------------- 
SECTION A – 16 MARKS 
Question 1  
(i) Refer to the graph given below and determine the behaviour of TU as MU 
decreases up to the point ‘b’. 
[1] 
  
 
 
 
 
 
 
 (a) TU increases up to a limit and remains positive.  
 (b) TU increases at an increasing rate          
 (c) TU increases at a diminishing rate.           
 (d) TU is at a point of satiety.  
Figure 1 
Utility 
O 
b 
MU 
Units 
TU 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
2 
(ii) GST has been imposed at the rate of 5% both on edible oil and a few spices. In 
this situation, the supply curve of edible oil will: 
[1] 
 (a) shift leftward.  
 (b) shift rightward.  
 (c) not change its position.   
 (d) slope downward.  
(iii) Identify the good that has a direct price-demand relationship.  [1] 
 (a) Giffen Good   
 (b) Complementary Good   
 (c) Normal Good   
 (d) Inferior Good   
(iv) How would rational consumers react to a situation when the price of the car 
remains constant but the price of the petrol increases? 
[1] 
 (a) They would tend to buy less cars.  
 (b) They would tend to buy more cars.  
 (c) They would not react to the situation.  
 (d) They would wait for the price of petrol to come down.  
(v) Which type of tax discourages people from making more money as it can lead to 
class warfare and individuals hiding income or assets? 
[1] 
 (a) A small percentage of tax charged on an individual’s income.  
 (b) A fixed percentage of tax charged on an individual’s income.  
 (c) Tax charged at a decreasing rate when income of the individual 
increases. 
 
 (d) Tax charged at an increasing rate when income of the individual 
increases. 
 
 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
3 
(vi) Which one of the following best illustrates leakages in the circular flow of 
income? 
[1] 
 (a) Investment   
 (b) Export earning  
 (c) Savings by households   
 (d) Government expenditure   
(vii) A firm’s demand curve shows highest elasticity in: [1] 
 (a) Monopoly market.  
 (b) Perfectly Competitive market.  
 (c) Monopolistic competitive market.  
 (d) Oligopoly market.  
(viii) Identify the equilibrium of the firm in the graph given below: [1] 
  
 
 
 
 
 
 
 
 (a) T is the equilibrium point at which firm enjoys supernormal profit.  
 (b) K is the equilibrium point when firm faces losses.  
 (c) T is the equilibrium point causing normal profit to the firm.  
 (d) K indicates equilibrium which reveals zero profit to the producer 
 
 
Figure 2 
T 
• 
• 
Cost & 
Revenue 
P 
O 
Output 
AR=MR 
K 
AC 
MC 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
4 
(ix) Assertion: Price discrimination is possible only in a monopoly market. 
Reason: AR curve of a monopoly firm exhibits the market demand for the 
commodity. 
[1] 
 (a) Both Assertion and Reason are true, and Reason is the correct 
explanation for Assertion. 
 
 (b) Both Assertion and Reason are true, but Reason is not the correct 
explanation for Assertion. 
 
 (c) Assertion is true and Reason is false.  
 (d) Both Assertion and Reason are false.  
(x) In an economy, how much additional investment should be generated in the 
private sector to raise national income by ? 450 Cr. while MPC is 0·6? 
[1] 
(xi) How does an increase in national income affect the income-elastic investment in 
the economy? 
[1] 
(xii) An economy can have a fiscal deficit without a revenue deficit. Give one reason 
to support this statement.  
[1] 
(xiii) State whether the following is True or False. Give one reason for your answer. 
Change in inventory is a stock concept. 
[1] 
(xiv) State any one difference between Perfect competition and Monopolistic 
competition. 
[1] 
(xv) Full employment does not necessarily imply zero unemployment. Justify. [1] 
(xvi) How is deflationary gap generated in the economy? [1] 
SECTION B – 32 MARKS 
Question 2  
(i) It is claimed that Artificial Intelligence can help the manufacturing industries 
improve their efficiency. 
How will this impact the supply of the product by the manufacturing industries? 
Show the impact with the help of a diagram.  
[2] 
(ii) The market demand for a commodity at ? 8 per unit is 100 units. The price rises 
and as a result, its market demand falls to 75 units. Find out the new price of the 
commodity if the price elasticity of demand is -1. 
[2] 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2024 
5 
 
Question 3  
(i) What does the difference between fiscal deficit and interest payments imply? 
What does ‘zero difference’ mean in this case?                                                                                                                                           
[2] 
(ii) In some situations, the government may consider additional spending to fight 
inflation. Justify this statement.      
[2] 
 
 
Question 4  
(i) Why is the short run average cost curve U-shaped?                 [1] 
(ii) Calculate AC, AVC and AFC from the following:  
TFC is ?15 at all levels of output 
[3] 
 
 
Output (Units) 1 2 3 4 
TVC 10 19 29 40 
 
 
 
 
Question 5  
(i) Explain any two causes of restricted entry in a monopoly market structure. [2] 
(ii) The demand curve of a firm is more elastic under monopolistic competition than 
under monopoly. Explain 
[2] 
 OR  
(i) Maximum profit implies the equilibrium position of a firm, but every equilibrium 
does not imply maximum profit of the firm. Justify this statement with the help 
of a suitable diagram.                            
[4] 
 
 
Question 6  
(i) Explain the indeterminate demand curve of an oligopolist. [2] 
(ii) What is meant by a break-even point? Show it in a diagram.                                                      [2]