ICSE Economics Sample Paper - 2023 | ICSE Humanities Class 12 Sample Papers PDF Download

 Page 1


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
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) Indifference curve is convex to the origin due to: [1] 
 (a) Axiom of transitivity.  
 (b) Law of DMU.  
 (c) Law of DMRS.  
 (d) Axiom of non-satiety.  
(ii) When supply of a commodity increases by 24% following the rise in price by 
8%, supply curve will be: 
[1] 
 (a) positively sloped with positive intercept.  
 (b) positively sloped with negative intercept.  
 (c) horizontal.  
 (d) parallel to price axis.  
Page 2


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
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) Indifference curve is convex to the origin due to: [1] 
 (a) Axiom of transitivity.  
 (b) Law of DMU.  
 (c) Law of DMRS.  
 (d) Axiom of non-satiety.  
(ii) When supply of a commodity increases by 24% following the rise in price by 
8%, supply curve will be: 
[1] 
 (a) positively sloped with positive intercept.  
 (b) positively sloped with negative intercept.  
 (c) horizontal.  
 (d) parallel to price axis.  
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
2 
(iii)  
 
 
 
 
 
[1] 
 In the figure given above, D is demand curve for normal good.  It shifts to D ’ 
which is a case of: 
 
 (a) extension of demand due to change in price level.  
 (b) increase in demand due to rice in expected future price of the commodity.  
 (c) contraction of demand due to increase in price of the substitute.  
 (d) increase in demand due to rise in price of the complimentary good.  
(iv) A demand curve parallel to X axis signifies: [1] 
 (a) perfectly elastic.  
 (b) perfectly inelastic.  
 (c) elastic.  
 (d) inelastic.  
(v) Which one of the following is a pair of direct taxes?  [1] 
 (a) Excise duty and Wealth Tax  
 (b) Service Tax and Income Tax  
 (c) Excise Duty and Service Tax  
 (d) Wealth Tax and Income Tax  
(vi) Which one of the following is included in the calculation of National Income? [1] 
 (a) Transfer Earnings  
 (b) Sale proceeds of Shares and Bonds  
 (c) Black Money  
 (d) None of the Above  
Price  
Quantity 
O 
D ’ 
D 
Page 3


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
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) Indifference curve is convex to the origin due to: [1] 
 (a) Axiom of transitivity.  
 (b) Law of DMU.  
 (c) Law of DMRS.  
 (d) Axiom of non-satiety.  
(ii) When supply of a commodity increases by 24% following the rise in price by 
8%, supply curve will be: 
[1] 
 (a) positively sloped with positive intercept.  
 (b) positively sloped with negative intercept.  
 (c) horizontal.  
 (d) parallel to price axis.  
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
2 
(iii)  
 
 
 
 
 
[1] 
 In the figure given above, D is demand curve for normal good.  It shifts to D ’ 
which is a case of: 
 
 (a) extension of demand due to change in price level.  
 (b) increase in demand due to rice in expected future price of the commodity.  
 (c) contraction of demand due to increase in price of the substitute.  
 (d) increase in demand due to rise in price of the complimentary good.  
(iv) A demand curve parallel to X axis signifies: [1] 
 (a) perfectly elastic.  
 (b) perfectly inelastic.  
 (c) elastic.  
 (d) inelastic.  
(v) Which one of the following is a pair of direct taxes?  [1] 
 (a) Excise duty and Wealth Tax  
 (b) Service Tax and Income Tax  
 (c) Excise Duty and Service Tax  
 (d) Wealth Tax and Income Tax  
(vi) Which one of the following is included in the calculation of National Income? [1] 
 (a) Transfer Earnings  
 (b) Sale proceeds of Shares and Bonds  
 (c) Black Money  
 (d) None of the Above  
Price  
Quantity 
O 
D ’ 
D 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
3 
(vii) Indian Railways charges lower freight rates for transporting essential products 
like food, coal etc., as compared to freight charges for other products like T.V., 
Air coolers etc. This is an example of: 
[1] 
 (a) Price ceiling.  
 (b) Price discrimination.  
 (c) Price control.  
 (d) Floor pricing.  
(viii) A firm produces its profit maximising level of output only when: [1] 
 (a) MR = AR  
 (b) MR > MC  
 (c) AR < MR  
 (d) MC = MR  
(ix) Complete the following table: [1] 
  
INCOME (Y) ` CONSUMPTION 
(C) ` 
MPC ` MPS ` 
8000/- 6800/-   
10000/- 8000/-   
 
 
(x) What is investment multiplier? [1] 
(xi) Mention any two sources of receipts from tax revenue of government budget. [1] 
(xii) State whether the following statement is True or False. Give one reason for your 
answer. 
[1] 
 Undistributed profits are not a part of domestic factor income.  
(xiii) An oligopolist has an indeterminate demand curve. What is the reason for this 
feature of Oligopoly? 
[1] 
(xiv) Why is AR=MR=P a horizontal straight line under perfect competition in the 
short run? 
[1] 
(xv) What does 0<c<1 signify? [1] 
(xvi) What is meant by autonomous consumption? [1] 
Page 4


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
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) Indifference curve is convex to the origin due to: [1] 
 (a) Axiom of transitivity.  
 (b) Law of DMU.  
 (c) Law of DMRS.  
 (d) Axiom of non-satiety.  
(ii) When supply of a commodity increases by 24% following the rise in price by 
8%, supply curve will be: 
[1] 
 (a) positively sloped with positive intercept.  
 (b) positively sloped with negative intercept.  
 (c) horizontal.  
 (d) parallel to price axis.  
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
2 
(iii)  
 
 
 
 
 
[1] 
 In the figure given above, D is demand curve for normal good.  It shifts to D ’ 
which is a case of: 
 
 (a) extension of demand due to change in price level.  
 (b) increase in demand due to rice in expected future price of the commodity.  
 (c) contraction of demand due to increase in price of the substitute.  
 (d) increase in demand due to rise in price of the complimentary good.  
(iv) A demand curve parallel to X axis signifies: [1] 
 (a) perfectly elastic.  
 (b) perfectly inelastic.  
 (c) elastic.  
 (d) inelastic.  
(v) Which one of the following is a pair of direct taxes?  [1] 
 (a) Excise duty and Wealth Tax  
 (b) Service Tax and Income Tax  
 (c) Excise Duty and Service Tax  
 (d) Wealth Tax and Income Tax  
(vi) Which one of the following is included in the calculation of National Income? [1] 
 (a) Transfer Earnings  
 (b) Sale proceeds of Shares and Bonds  
 (c) Black Money  
 (d) None of the Above  
Price  
Quantity 
O 
D ’ 
D 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
3 
(vii) Indian Railways charges lower freight rates for transporting essential products 
like food, coal etc., as compared to freight charges for other products like T.V., 
Air coolers etc. This is an example of: 
[1] 
 (a) Price ceiling.  
 (b) Price discrimination.  
 (c) Price control.  
 (d) Floor pricing.  
(viii) A firm produces its profit maximising level of output only when: [1] 
 (a) MR = AR  
 (b) MR > MC  
 (c) AR < MR  
 (d) MC = MR  
(ix) Complete the following table: [1] 
  
INCOME (Y) ` CONSUMPTION 
(C) ` 
MPC ` MPS ` 
8000/- 6800/-   
10000/- 8000/-   
 
 
(x) What is investment multiplier? [1] 
(xi) Mention any two sources of receipts from tax revenue of government budget. [1] 
(xii) State whether the following statement is True or False. Give one reason for your 
answer. 
[1] 
 Undistributed profits are not a part of domestic factor income.  
(xiii) An oligopolist has an indeterminate demand curve. What is the reason for this 
feature of Oligopoly? 
[1] 
(xiv) Why is AR=MR=P a horizontal straight line under perfect competition in the 
short run? 
[1] 
(xv) What does 0<c<1 signify? [1] 
(xvi) What is meant by autonomous consumption? [1] 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
4 
SECTION B – 32 MARKS 
Question 2 [4] 
(i) The following headline appeared in the newspaper –  
“Crop damage in Himachal Pradesh sent tomato prices soaring in Delhi.” 
Analyse the statement with reference to the relationship between price and 
supply. 
 
(ii) The initial demand for a commodity was 100 units. With a rise in price by ? 5, 
the demand for the quantity decreases by 5 units. The elasticity of demand is 1?2. 
Calculate the price before the change in demand. 
 
 
 
Question 3 [4] 
(i) State any two differences between a direct tax and an indirect tax.  
(ii) Refunding and Debt conversion are two methods of Debt redemption. Briefly 
explain these two methods of debt redemption. 
 
 
 
Question 4  
(i) What is marginal cost of a firm? [1] 
(ii) Calculate Total fixed cost, Marginal cost and Average Cost from the following 
data: 
[3] 
  
Output (Units) 0 1 2 3 4 
Total cost (`) 100 240 360 540 620 
 
 
 
 
Question 5  
(i) Explain any two features of Perfect Competition. [2] 
(ii) What is meant by intense competition under Oligopoly? [2] 
 OR  
(i) Explain the equilibrium of a firm when it enjoys supernormal profit in the short 
run under perfect competition.   
[4] 
 
Page 5


-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
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) Indifference curve is convex to the origin due to: [1] 
 (a) Axiom of transitivity.  
 (b) Law of DMU.  
 (c) Law of DMRS.  
 (d) Axiom of non-satiety.  
(ii) When supply of a commodity increases by 24% following the rise in price by 
8%, supply curve will be: 
[1] 
 (a) positively sloped with positive intercept.  
 (b) positively sloped with negative intercept.  
 (c) horizontal.  
 (d) parallel to price axis.  
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
2 
(iii)  
 
 
 
 
 
[1] 
 In the figure given above, D is demand curve for normal good.  It shifts to D ’ 
which is a case of: 
 
 (a) extension of demand due to change in price level.  
 (b) increase in demand due to rice in expected future price of the commodity.  
 (c) contraction of demand due to increase in price of the substitute.  
 (d) increase in demand due to rise in price of the complimentary good.  
(iv) A demand curve parallel to X axis signifies: [1] 
 (a) perfectly elastic.  
 (b) perfectly inelastic.  
 (c) elastic.  
 (d) inelastic.  
(v) Which one of the following is a pair of direct taxes?  [1] 
 (a) Excise duty and Wealth Tax  
 (b) Service Tax and Income Tax  
 (c) Excise Duty and Service Tax  
 (d) Wealth Tax and Income Tax  
(vi) Which one of the following is included in the calculation of National Income? [1] 
 (a) Transfer Earnings  
 (b) Sale proceeds of Shares and Bonds  
 (c) Black Money  
 (d) None of the Above  
Price  
Quantity 
O 
D ’ 
D 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
3 
(vii) Indian Railways charges lower freight rates for transporting essential products 
like food, coal etc., as compared to freight charges for other products like T.V., 
Air coolers etc. This is an example of: 
[1] 
 (a) Price ceiling.  
 (b) Price discrimination.  
 (c) Price control.  
 (d) Floor pricing.  
(viii) A firm produces its profit maximising level of output only when: [1] 
 (a) MR = AR  
 (b) MR > MC  
 (c) AR < MR  
 (d) MC = MR  
(ix) Complete the following table: [1] 
  
INCOME (Y) ` CONSUMPTION 
(C) ` 
MPC ` MPS ` 
8000/- 6800/-   
10000/- 8000/-   
 
 
(x) What is investment multiplier? [1] 
(xi) Mention any two sources of receipts from tax revenue of government budget. [1] 
(xii) State whether the following statement is True or False. Give one reason for your 
answer. 
[1] 
 Undistributed profits are not a part of domestic factor income.  
(xiii) An oligopolist has an indeterminate demand curve. What is the reason for this 
feature of Oligopoly? 
[1] 
(xiv) Why is AR=MR=P a horizontal straight line under perfect competition in the 
short run? 
[1] 
(xv) What does 0<c<1 signify? [1] 
(xvi) What is meant by autonomous consumption? [1] 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
4 
SECTION B – 32 MARKS 
Question 2 [4] 
(i) The following headline appeared in the newspaper –  
“Crop damage in Himachal Pradesh sent tomato prices soaring in Delhi.” 
Analyse the statement with reference to the relationship between price and 
supply. 
 
(ii) The initial demand for a commodity was 100 units. With a rise in price by ? 5, 
the demand for the quantity decreases by 5 units. The elasticity of demand is 1?2. 
Calculate the price before the change in demand. 
 
 
 
Question 3 [4] 
(i) State any two differences between a direct tax and an indirect tax.  
(ii) Refunding and Debt conversion are two methods of Debt redemption. Briefly 
explain these two methods of debt redemption. 
 
 
 
Question 4  
(i) What is marginal cost of a firm? [1] 
(ii) Calculate Total fixed cost, Marginal cost and Average Cost from the following 
data: 
[3] 
  
Output (Units) 0 1 2 3 4 
Total cost (`) 100 240 360 540 620 
 
 
 
 
Question 5  
(i) Explain any two features of Perfect Competition. [2] 
(ii) What is meant by intense competition under Oligopoly? [2] 
 OR  
(i) Explain the equilibrium of a firm when it enjoys supernormal profit in the short 
run under perfect competition.   
[4] 
 
-------------------------------------------------------------------------------------------------------------------- 
ISC SPECIMEN QUESTION PAPER 2023 
5 
 
Question 6 [4] 
(i) In the short run under perfect competition, a firm should produce if and only if    
P or AR = AVC. Justify. 
 
(ii) Why do firms earn normal profit in the long run under Perfect competition?   
 
 
Question 7 [4] 
(i) What is meant by inflation? Mention the types of Inflation.  
(ii) Explain the role of ‘repo rate’ in controlling inflation.  
 
 
Question 8 [4] 
(i) Illustrate the process of credit creation by Commercial banks with the help of a 
numerical example. 
 
 OR  
(ii) How does Central bank control credit by using Qualitative methods?  
 
 
Question 9 [4] 
Explain the equilibrium level of income and output determination by Aggregate demand 
and Aggregate supply approach with the help of a diagram. 
 
SECTION C – 32 MARKS 
Question 10  
(i) State the law of variable proportions. Explain its three stages by using a diagram. [6] 
(ii) Briefly explain why the producer is comfortable in the second stage of 
production. 
[2]