ICSE Economics Past Year Paper with Solutions - 2024 | Economics Class 10 ICSE PDF Download

 Page 1


Economics 
CISCE 
Academic Year: 2023-2024 
(English Medium) 
Date & Time: 6th March 2024, 11:00 am 
 
Duration: 2h                                                                                                     Marks: 100 
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 reading the question paper. 
4. The time given at the head of this Paper is the time allowed for writing the ans
wers. 
5. Attempt all five questions. 
 
6. Attempt all questions from Section A and any four questions from Section B. 
7. The intended marks for questions or parts of questions are given in brackets [ ]
. 
SECTION-A (40 Marks) (Attempt all questions from this Section) 
Q1. Choose the correct answers to the questions from the given options. (Do not copy 
the questions, write the correct answer only.) 
1.1. If the rate of tax falls with an increase in income, it is called as ______. 
1. Regressive 
2. Progressive 
3. Digressive 
4. Proportional 
Solution 
If the rate of tax falls with an increase in income, it is called as Regressive. 
Explanation: 
A regressive tax is one in which the tax rate drops as the income of the taxpayer rises. 
Page 2


Economics 
CISCE 
Academic Year: 2023-2024 
(English Medium) 
Date & Time: 6th March 2024, 11:00 am 
 
Duration: 2h                                                                                                     Marks: 100 
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 reading the question paper. 
4. The time given at the head of this Paper is the time allowed for writing the ans
wers. 
5. Attempt all five questions. 
 
6. Attempt all questions from Section A and any four questions from Section B. 
7. The intended marks for questions or parts of questions are given in brackets [ ]
. 
SECTION-A (40 Marks) (Attempt all questions from this Section) 
Q1. Choose the correct answers to the questions from the given options. (Do not copy 
the questions, write the correct answer only.) 
1.1. If the rate of tax falls with an increase in income, it is called as ______. 
1. Regressive 
2. Progressive 
3. Digressive 
4. Proportional 
Solution 
If the rate of tax falls with an increase in income, it is called as Regressive. 
Explanation: 
A regressive tax is one in which the tax rate drops as the income of the taxpayer rises. 
1.2. Which is an assumption to law of demand? 
1. No change in price of factor input. 
2. No change in size and composition of population. 
3. No change in number of firms operating in a market. 
4. No change in goal of a firm. 
Solution 
No change in size and composition of population. 
Explanation: 
The population's size and composition assumptions are crucial because, even in the 
absence of price changes, shifts in the population can have an impact on the total 
demand for a given good. The remaining options will affect a commodity's supply 
rather than its demand. 
1.3. Which is an essential feature of barter system? 
1. It is based on transfer of value. 
2. It is based on double coincidence of wants. 
3. It is based on unit of account. 
4. It is based on store of value. 
Solution 
It is based on double coincidence of wants. 
Explanation: 
In a barter system, one commodity is traded for another. To make transactions easier 
under the barter system, there must be a mutual benefit or necessity shared by the 
two parties. This is a "double coincidence" of the desire to facilitate a barter system 
transaction. 
1.4. If a labourer does not work for a day, his one day 's work will be lost forever. 
It implies: 
1. Labour is less mobile. 
Page 3


Economics 
CISCE 
Academic Year: 2023-2024 
(English Medium) 
Date & Time: 6th March 2024, 11:00 am 
 
Duration: 2h                                                                                                     Marks: 100 
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 reading the question paper. 
4. The time given at the head of this Paper is the time allowed for writing the ans
wers. 
5. Attempt all five questions. 
 
6. Attempt all questions from Section A and any four questions from Section B. 
7. The intended marks for questions or parts of questions are given in brackets [ ]
. 
SECTION-A (40 Marks) (Attempt all questions from this Section) 
Q1. Choose the correct answers to the questions from the given options. (Do not copy 
the questions, write the correct answer only.) 
1.1. If the rate of tax falls with an increase in income, it is called as ______. 
1. Regressive 
2. Progressive 
3. Digressive 
4. Proportional 
Solution 
If the rate of tax falls with an increase in income, it is called as Regressive. 
Explanation: 
A regressive tax is one in which the tax rate drops as the income of the taxpayer rises. 
1.2. Which is an assumption to law of demand? 
1. No change in price of factor input. 
2. No change in size and composition of population. 
3. No change in number of firms operating in a market. 
4. No change in goal of a firm. 
Solution 
No change in size and composition of population. 
Explanation: 
The population's size and composition assumptions are crucial because, even in the 
absence of price changes, shifts in the population can have an impact on the total 
demand for a given good. The remaining options will affect a commodity's supply 
rather than its demand. 
1.3. Which is an essential feature of barter system? 
1. It is based on transfer of value. 
2. It is based on double coincidence of wants. 
3. It is based on unit of account. 
4. It is based on store of value. 
Solution 
It is based on double coincidence of wants. 
Explanation: 
In a barter system, one commodity is traded for another. To make transactions easier 
under the barter system, there must be a mutual benefit or necessity shared by the 
two parties. This is a "double coincidence" of the desire to facilitate a barter system 
transaction. 
1.4. If a labourer does not work for a day, his one day 's work will be lost forever. 
It implies: 
1. Labour is less mobile. 
2. Labour is perishable. 
3. Labour is less efficient. 
4. Labour is sensitive in nature. 
Solution 
Labour is perishable. 
Explanation:  
Labour cannot be kept; hence it is perishable. Given that labour is time, a worker who 
misses one day of work will never get it back. It is perishable because it is sensitive. 
1.5. With reference to Perfect competition form of market, choose the odd one out. 
1. Restricted entry 
2. Perfect knowledge 
3. Homogeneous products 
4. Perfect mobility 
Solution 
Restricted entry 
Explanation:  
Perfect competition form of market is characterised by: 
1. Large number of buyers and sellers. 
2. Homogenous products. 
3. Free entry and exit. 
4. Perfect mobility of resources. 
5. Perfect knowledge. 
6. Absence of transport costs. 
1.6. Identify the degree of elasticity of supply from the following graph: 
Page 4


Economics 
CISCE 
Academic Year: 2023-2024 
(English Medium) 
Date & Time: 6th March 2024, 11:00 am 
 
Duration: 2h                                                                                                     Marks: 100 
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 reading the question paper. 
4. The time given at the head of this Paper is the time allowed for writing the ans
wers. 
5. Attempt all five questions. 
 
6. Attempt all questions from Section A and any four questions from Section B. 
7. The intended marks for questions or parts of questions are given in brackets [ ]
. 
SECTION-A (40 Marks) (Attempt all questions from this Section) 
Q1. Choose the correct answers to the questions from the given options. (Do not copy 
the questions, write the correct answer only.) 
1.1. If the rate of tax falls with an increase in income, it is called as ______. 
1. Regressive 
2. Progressive 
3. Digressive 
4. Proportional 
Solution 
If the rate of tax falls with an increase in income, it is called as Regressive. 
Explanation: 
A regressive tax is one in which the tax rate drops as the income of the taxpayer rises. 
1.2. Which is an assumption to law of demand? 
1. No change in price of factor input. 
2. No change in size and composition of population. 
3. No change in number of firms operating in a market. 
4. No change in goal of a firm. 
Solution 
No change in size and composition of population. 
Explanation: 
The population's size and composition assumptions are crucial because, even in the 
absence of price changes, shifts in the population can have an impact on the total 
demand for a given good. The remaining options will affect a commodity's supply 
rather than its demand. 
1.3. Which is an essential feature of barter system? 
1. It is based on transfer of value. 
2. It is based on double coincidence of wants. 
3. It is based on unit of account. 
4. It is based on store of value. 
Solution 
It is based on double coincidence of wants. 
Explanation: 
In a barter system, one commodity is traded for another. To make transactions easier 
under the barter system, there must be a mutual benefit or necessity shared by the 
two parties. This is a "double coincidence" of the desire to facilitate a barter system 
transaction. 
1.4. If a labourer does not work for a day, his one day 's work will be lost forever. 
It implies: 
1. Labour is less mobile. 
2. Labour is perishable. 
3. Labour is less efficient. 
4. Labour is sensitive in nature. 
Solution 
Labour is perishable. 
Explanation:  
Labour cannot be kept; hence it is perishable. Given that labour is time, a worker who 
misses one day of work will never get it back. It is perishable because it is sensitive. 
1.5. With reference to Perfect competition form of market, choose the odd one out. 
1. Restricted entry 
2. Perfect knowledge 
3. Homogeneous products 
4. Perfect mobility 
Solution 
Restricted entry 
Explanation:  
Perfect competition form of market is characterised by: 
1. Large number of buyers and sellers. 
2. Homogenous products. 
3. Free entry and exit. 
4. Perfect mobility of resources. 
5. Perfect knowledge. 
6. Absence of transport costs. 
1.6. Identify the degree of elasticity of supply from the following graph: 
 
1. ES > 1 
2. ES < 1 
3. ES = 1 
4. ES = 0 
Solution 
ES = 1 
Explanation:  
The supply of a commodity is said to be unit elastic when the percentage change in 
supply is equal to percentage change in price. Thus, any straight line supply curve 
drawn through the origin has an elasticity of unity over its entire length, irrespective 
of its slope. 
1.7. Maruti, Tata and Hyundai are examples of which form of market? 
1. Perfect competition 
2. Oligopoly 
3. Monopoly 
4. Duopoly 
Solution 
Oligopoly 
Explanation:  
An oligopoly is a market arrangement where a few companies compete aggressively 
with one another to sell the same product. In markets such as India, where they hold 
a major share of the market, Maruti, Tata, and Hyundai are the leading participants in 
Page 5


Economics 
CISCE 
Academic Year: 2023-2024 
(English Medium) 
Date & Time: 6th March 2024, 11:00 am 
 
Duration: 2h                                                                                                     Marks: 100 
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 reading the question paper. 
4. The time given at the head of this Paper is the time allowed for writing the ans
wers. 
5. Attempt all five questions. 
 
6. Attempt all questions from Section A and any four questions from Section B. 
7. The intended marks for questions or parts of questions are given in brackets [ ]
. 
SECTION-A (40 Marks) (Attempt all questions from this Section) 
Q1. Choose the correct answers to the questions from the given options. (Do not copy 
the questions, write the correct answer only.) 
1.1. If the rate of tax falls with an increase in income, it is called as ______. 
1. Regressive 
2. Progressive 
3. Digressive 
4. Proportional 
Solution 
If the rate of tax falls with an increase in income, it is called as Regressive. 
Explanation: 
A regressive tax is one in which the tax rate drops as the income of the taxpayer rises. 
1.2. Which is an assumption to law of demand? 
1. No change in price of factor input. 
2. No change in size and composition of population. 
3. No change in number of firms operating in a market. 
4. No change in goal of a firm. 
Solution 
No change in size and composition of population. 
Explanation: 
The population's size and composition assumptions are crucial because, even in the 
absence of price changes, shifts in the population can have an impact on the total 
demand for a given good. The remaining options will affect a commodity's supply 
rather than its demand. 
1.3. Which is an essential feature of barter system? 
1. It is based on transfer of value. 
2. It is based on double coincidence of wants. 
3. It is based on unit of account. 
4. It is based on store of value. 
Solution 
It is based on double coincidence of wants. 
Explanation: 
In a barter system, one commodity is traded for another. To make transactions easier 
under the barter system, there must be a mutual benefit or necessity shared by the 
two parties. This is a "double coincidence" of the desire to facilitate a barter system 
transaction. 
1.4. If a labourer does not work for a day, his one day 's work will be lost forever. 
It implies: 
1. Labour is less mobile. 
2. Labour is perishable. 
3. Labour is less efficient. 
4. Labour is sensitive in nature. 
Solution 
Labour is perishable. 
Explanation:  
Labour cannot be kept; hence it is perishable. Given that labour is time, a worker who 
misses one day of work will never get it back. It is perishable because it is sensitive. 
1.5. With reference to Perfect competition form of market, choose the odd one out. 
1. Restricted entry 
2. Perfect knowledge 
3. Homogeneous products 
4. Perfect mobility 
Solution 
Restricted entry 
Explanation:  
Perfect competition form of market is characterised by: 
1. Large number of buyers and sellers. 
2. Homogenous products. 
3. Free entry and exit. 
4. Perfect mobility of resources. 
5. Perfect knowledge. 
6. Absence of transport costs. 
1.6. Identify the degree of elasticity of supply from the following graph: 
 
1. ES > 1 
2. ES < 1 
3. ES = 1 
4. ES = 0 
Solution 
ES = 1 
Explanation:  
The supply of a commodity is said to be unit elastic when the percentage change in 
supply is equal to percentage change in price. Thus, any straight line supply curve 
drawn through the origin has an elasticity of unity over its entire length, irrespective 
of its slope. 
1.7. Maruti, Tata and Hyundai are examples of which form of market? 
1. Perfect competition 
2. Oligopoly 
3. Monopoly 
4. Duopoly 
Solution 
Oligopoly 
Explanation:  
An oligopoly is a market arrangement where a few companies compete aggressively 
with one another to sell the same product. In markets such as India, where they hold 
a major share of the market, Maruti, Tata, and Hyundai are the leading participants in 
the automative business. The car business is an example of an oligopoly market due 
to its large market dominance and high entry barriers.  
1.8. With price being same an increase in the price of inputs will lead to ______ in the 
supply curve. 
1. Upward movement 
2. Rightward shift 
3. Downward movement 
4. Leftward shift 
Solution 
With price being same an increase in the price of inputs will lead to Leftward shift in 
the supply curve. 
Explanation:  
Given the same price, a rise in input costs will cause the supply curve to shift to the 
left due to higher costs, reduced profits, causing companies to create and supply less 
at the fixed rates. 
1.9. Which of the following is not an advantage of division of labour? 
1. Reduces cost of production 
2. Expansion of employment 
3. Low quality goods 
4. Inventions 
Solution 
Low quality goods 
Explanation:  
Division of labour boosts productivity, sharpens abilities, and fosters creativity since it 
raises knowledge in a certain field. It can also lower production costs and increase 
employment by generating more specialized jobs. However, it is not connected to the 
production of low-quality products.