As per the latest Reduced and Bifurcated Syllabus for Academic Year 2021-22 for First Semester Examination be held in November 2021 1.C.S.E. OFC Seger ine Scan the QR Code to get the latest, information from CISCE Economics Question Bank with Model Test Papers ea CISCE’s Modified Assessment Plan for Academic Year 2021-22. Reduced and Bifurcated Syllabus for First Semester Examination Chapterwise Important Points. Chapterwise Multiple Choice Questions. Specimen Question Paper issued by the cIScE 5 Model Test Papers based on the latest specimen question paper for First Semester Examination to be held in November 2021 For Class 10 First Semester Examination @ GOYAL BROTHERS PRAKASHANAs per the latest Reduced and Bifurcated Syllabus for academic year 2021 22 for First Semester Examination to be held in November, 2021 , . . . en Geyalis Cx Economics Question Bank with Model Test Papers For Class 10 eee eee CISCE’s Modified Assessment Plan for Academic Year 2021-22. Reduced and Bifurcated Syllabus for First Semester Examination. Chapterwise Important Points. Chapterwise Multiple Choice Questions. ‘Specimen Question Paper issued by the CISCE 5 Model Test Papers based on the latest specimen question paper for yer Examination to be held in November 2021. vvrvvyy EN COPY NOT FoR SALE GOYAL BROTHERS PRAKASHAN NEW DELHIGOYAL BROTHERS PRAKASHAN EDUCATIONAL PUBLISHERS Sales & Registered Office : 11/1903, Chuna Mandi, Paharganj, New Delhi - 110085 Post Box : $720, Phones : 43851877, 43561877 mail infova goyal-books.com Website | www goyal-books.com Administrative Office : 1-231, Seetor 63, Noida-201301 (U.P) Phone : 0120-4655555 SHOWROOMS Ahmedabad: Y-10, Dev Castle Complex Opp. Radhekrishan Villa, Jaymala-Govindwadi Road Isanpur, Ahmedabad 382-443 (Gujarat) Tel ; 09925004030 Chennai: No. $0.39, Ground Floor, Five Furlong Road, Guindy, Chennai-600 032 (Tamil Nadu) Phones : 044-22552776, 044-22552767 Guwahati: Plot No, 1179, KRB Road, Bharalumukh, near Post Office, Railway Gate No. 8, Guwahati-781009 (Assam), Phone : 0361-2735337 Hyderabad: F-7/8/41, First Floor, Agarwal Chambers, 5-9-1121, King Kothi Road. 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Published & Printed by Roshan Lal Goyal for Goyal Brothers Prakashan, New DethiPious | (Reduced for academic year 2021-22) There will be one paper of two hours duration carrying 80 marks and Internal Assessment of 20 marks The paper will be divided into two sections A and B Section A will consist of questions requiring short answers and will cover the entire syllabus. There will be no choice of questions. Section B will consist of questions which will require detailed answers. There will be a choice and candidates will be required to answer four questions from this section 1. The Productive Mechanism Factors of production: Land, labour, capital and entrepreneur: their impact on the production structure in an economy. (0) Land: meaning and characteristics, productivity of and - meaning only; factors affecting productivity of land. (i) Labour: meaning and characteristics; division of labour: meaning, of labour; meaning, reasons for low efficiency of Indian labour. (1) Capital: meaning and characteristics and types: physical and nancial capital- meaning with examples: Capital Formation; meaning, Process of capital formation; Need for capital formation: ()__ Entrepreneur: meaning, functions and role of entrepreneur in economic development. 2. Theory of Demand and Supply i * Meaning and concept of Demand and Supply. Determinants of Demand and Supply, Meaning of demand and supply: the concept of Demand, types of demand and concept of supply to be explained (with examples). Determinants of demand and supply are to be specified 3. Market . Meaning and types. Meaning of | ae Types of Markets: Perfect competition, Monopoly, Monopolistic Competition, Oligopoly - meaning with examples; a brief understanding of the features of the aifferent types of markets along with differences. 4. Banking in India . woney derstanding of the inconvenience of the barter system and the evolution of money; legal A basic unt definition of money; functions of money: medium of exchange “BPRS Merry aby ue. aa ayment, store of val NOr eo . a mmercial banks: Meaning and functions. FOR g E (ii) Cor Functions of Commercial banks: Accepting deposits (a brief understanding of the by Meaning. Ful cing loans (a brief understanding of the types of loans, methods of advancing of eee a (a brief understanding of credit creation on the basis of Primary and derivative loans); Credit type and advantages; efficiency deposits)(iii) Central Bank Meaning. Functions of Central Bank: monopoly of Note issue; Bankers Bank; Banker, Agent ang Advisor to the Goverment: Custodian of Foreign Exchange; Lender of the Last Resort: A briet understanding of the functions. (iv) Demonetisation A bnef understanding. (v) Public Finance (a) Meaning of Public Finance (b) Sources of Public Revenue + Tax Revenue. Direct Tax (meaning, merits and demerits); Indirect Tax (meaning, ments and demerits) difference between direct and indirect taxes. Goods and Services Tax (GST) - Meaning and objectives, Progressive, proportional, regressive and degressive taxes - meaning only. + Non-tax revenue Meaning with examples. (c) Public Expenditure. ‘Meaning of public expenditure, Revenue and Capital expenditure with examples, reason for growth of public expenditure in India. (8) Public Debt. Meaning and types of Public debts. 5. Inflation ()_ Inflation, Wholesale Price Index (WP!), Consumer Price Index (CPI), Food Basket, Meaning of the above. (ii) Stages of Inflation Creeping, Walking, Running and Hyper — meaning only. (iil) Types of inflation: Cost push inflation and demand- pull inflation. ‘Meaning, causes and differences only (diagram not required). Positive and negative effects of inflation on production. Positive and negative effects of inflation on distribution with reference to fixed income group and business income group only. 6. Consumer Awareness (i) Consumer Exploitation and Consumer awareness. ‘Meaning of consumer exploitation; a brief understanding of the forms of consumer exploitation. reasons for exploitation of consumers in India - a brief understanding. Meaning of Consumer Awareness. (ii) Consumer Rights & Duties. Abrief understanding of the above. COPRA- meaning and features; RTI - meaning and significance (ill) Food adulteration Meaning and harmful effects (iv) Technical and Administrative measures for Consumer Protection A brief understanding of: Public Distribution System (PDS); Bureau of Indian Standards (BiS): AGMARK, ECOMARK.BIFURCATED SYLLABUS (As per the Reduced Syllabus for academic Year 2021) So ooa! (Marks: 40) SEMESTER 2 NAME OF THE NAME OF NAME OF THE SUB-UNIT NO. |THEUNIT | SUB-UNIT 4. Banking In ) Commercial Banks: India Meaning and | (Complete Unit) functions (iii) Central Bank =| | (iv) Demonetisation | (v) Public Finance 2. Theory of Demand 5. | Inflation and Supply (Complete Unit) (Complete Unit) | | Market 6. | Consumer (Complete Unit) ‘Awareness (Complete Unit) 4. | Banking in India| (i) MoneyCONTENTS v (MCQ Bi d) |. The Productive Mechanism Theory of Demand and Supply . Market Banking in India — Money SSL PAPERS 1. ‘Specimen Paper (Issued by the CISCE) . Model Test Paper ~ 1 . Model Test Paper — 2 . Model Test Paper ~ 3 . Model Test Paper — 4 Model Test Paper — 5 ‘Answers to Question Bank, Specimen Paper and Model Test Papers: 12-22 23-4 35-42 43-46 47-49 50-52 53-55, 56-58 59-61 62-64QUESTION BANK (MCQ Based) The Productive Mechanism Pte eMedia asd @ Production refers to any activity that results in creation of goods and services intended for exchange. @ Production is an activity that creates economic utility in goods. @ Production of goods and services requires the use of certain resources which are termed as factors of production « All factors of production can broadly be classified into the following four categories (i) Land (ii) Labour (iii) Capital and (iv) Enterprise. ‘¢ Factors of production are demanded not for their own sake but for the production of goods and services which directly satisfy human wants, ‘¢ Land not only includes upper surface of the soil but also includes all the other free gifts of nature, such as air, water, climate, sun, rivers, forests, mountains, mine, etc., which are economically useful to man. ¢ Productivity of land is influenced by several factors such as fertility of the soil, climate, irrigation facilities. location of land, ownership of land, use of land, use of capital, government policy, etc © By labour, we mean all types of human work, physical as well as mental, done with a view to earn income. © Efficiency of labour implies the productive capacity of a worker. It is influenced by several factors like climate, education and training, working conditions, level of wages, the type of machines and tools used, employer-employee relation, ete. ¢ Division of labour refers to splitting up the work of labour involved in the production of a particular commodity into several parts and each part/sub-part is performed by a specialist © Division of labour may be of different kinds: (i) Product-based division of labour (ii) Process-based division of labour (iii) Horizontal and vertical division of labour (iv) International division of labour and (v) Geographical division of labour. © Division of labour cannot be adopted when the size of the market is small and it will not be possible when workers do not cooperate themselves. ‘© When other factors of production are available only to a limited extent, division of labour does not become economically viable. © All man-made durable goods which are used for further production of wealth are included in capital © The increasing use of capital has resulted in a large increase in production and productivity © By capital formation, we mean the increase in the stock of capital goods (eg., machines, equipment, buildings, means of transport, factories, etc.) which are used for more production © There are mainly three stages in the process of capital formation. These are (i) Creation of savings (ii) Mobilisation of savings and (iii) Investment of savings. © Entrepreneur is the one who organises production, takes important decisions regarding production, hires’ purchases factors of production and bears the risk and uncertainty involved in production. © The functions of organisation and enterprise are performed by the same man, thus, there is no difference between the organiser and the entrepreneur. © That country would be able to produce a large amount of output and generate a large income which ind dynamic entrepreneurs. Possesses a large class of able Gopal TSE Economics 10 Question Bank with MUP for Firs Semever Examination1, Land is a free gift of nature but capital is (A) Man made (B) Fixed (C) Perishable (D) All of these 2. Which is not the limitation of division of labour? (A) The size of the market (B) Attitude of workers (C) Nature of the product (D) Weather conditions 3. Which of these is not the disadvantage of division of labour? (A) Monotony of work (B) Lack of responsibility (C) Lack of mobility (D) High wages 4. Working efficieney of labourers is much lower in comparison to other developed countries A) American (B) Indi (C) British (D) Japanese Capital isa durable while labour is (A) Immobite (B) Passive (C) Perishable (D) Free gift of nature 6. Which of the following is the key job of the entrepreneur? (A) Risk bearing (B) Physical work (C) Digging of land (D) Imposition of tax 7. Those workers who have only a part of professional training of their trade but have sufficient experience in that line are called (A) Skilled workers (B) Semi-skilled workers (C) Unskilled workers (D) None of these 8. Printing machine is an example of (A) Floating capital (B) Financial capital (C) Physical capital (D) Circulating capital 9 The division of work between the workers engaged in producing cars, is an example of (A) Horizontal division of labour (B) Vertical division of labour (C) Intemational division of labour (D) None of these 10. Which of the following are included in capital goods? (A) Tools and instruments (B) Factories and buildings (C) Stock of goods with the producers (D) All of these 11. It is important to use land very carefully because land is (A) Limited in supply (B) Immovable (C) Passive factor of production (D) All of these 12. Farmer's plough is un example of which factors of production? (A) Land (B) Labour (C) Capital (D) Enterprise 13, Which is the characteristic of land as a factor of production? (A) Immovable (B) Varies in fertility (C) Differs in toc: ion (D) All of these 4. Natural qualities, such as fertility, slope, climate, chemical and biological properties of the soil “te., determine the productivity of (A) Labour (B) Capital (©) Land (D) Entrepreneur Goval’s ICSE Eeonomies-10 Question Bank with MIP for First Semester Frama15, Which tetor of production is taken in the sense of free gilt of nature? (A) Land (B) Labour (C) Capital (D) Enterprise 16. Low nite of is the chief cause for the low rate of capital formation ys (B) Consumption (C) Innovation (D) Distribution 17, Which factor does not influence the process of capital formation’? (A) Investment of savings (B) Creation of savings (C) Consumption of savings (D) Mobilisation of savings 18, Which of the following ate the type of saving. schemes in India? (A) Provident fund (B) Compulsory insurance (C) Compulsory deposits (D) All of these 19. Which factor is regarded ay primary factor of production? (A) Land (B) Labour (C) Capital (D) Entrepreneur 20. Capital that includes variety of inputs required at every stage of production, like machines, raw materials ete. is called (A) Internal capital (B) Debt capital (C) Physical capital (D) Human capital 21, Which type of goods are table, fan, pen, clothes ete.? (A) Material goods. (B) Consumer goods (C) Producer goods (D) None of these 22, If any individual invests his fund in purchasing IDBI flexi-bonds, ICICI bonds, ete. it is an example of (A) Money capital (B) Physical capital (C) Sunk capital (D) Financial capital 23. When total investment in any country is than its depreciation cost, then there will be capital formation. (A) More (B) Less (©) Equal (D)_ None of these 24, Causes of low rate of capital formation are (A) Low level of savings (B) Inflation (C) Taxation policy (D) Alll of these 25. Rajasthan desert is being converted into fertile land through (B) Weather and climate (A) Human efforts (D) None of these (C) Water scarcity factor of production Iron ore, forest, water, ete., are included? 26. In which (A) Labor (B) Land (C) Capital (D) Enterprise 27, Profit is the reward given to the for his services. (A) Land (B) Labour (C) Capital (D) Entrepreneur 28. Physical capital refers to the stock of people in a country equipped with (A) Machine (B) Skills (C) Health (D) All of these 29. In Economies, production means creation of . (A) Utility (B) Money (C) Savings (D) All of these ichers, engineers, transporters, bankers, trade provide utility (D) Time utility 30. Services of doctors, tea (A) Place utility Goval TSE Economics-10 Question Bank with (B) Form utility (C) Servie MIP for Furst Semester Examination31. Which is the mobile factor of production? (A) Labour (B) Capital (C) Organisation (D) All of these 32. Which factor lose their identity when used in the process of production? (A) Factor inputs (B) Non-factor inputs (C) Land (D) Labour 33. Which factor can also be called the “Captain of the ship"? (A) Land (B) Labour (C) Capital (D) Entrepreneur 34. Suppliers of factors of production are termed as - (A) Scale of production (B) Factors of production (C) Land of production (D) Agents of production 35, Creation or addition of economic utility in goods is known as (A) Production (B) Consumption (C) Exchange (D) Distribution 36. Which of the following is an example of a physical labourers? (A) Construction worker (B) Teacher (©) Advisor (D) Professor 37. Labour with no professional training and sufficient experience are categorized as (A) Semi-skilled labour (B) Unskilled labour (C) Skilled labour (D) None of these 38. Which type of utility is applicable when a carpenter makes furniture from wooden logs? (A) Service utility (B) Time utility (©) Place utility (D) Form utility 39. Which of the following is not a characteristic of land? (A) Unlimited in supply (B) Gift of nature (C) Permanent (D) Immovable 40. Which of the following is an example of a semi-skilled labourer? (A) Sweepers (B) Railway coolies (C) Weavers (D) Domestic servants 41. Which of the following is a non-factor input? (A) Land (B) Labour (C) Raw material (D) Capital 42. A system which determines the production of various goods and services in an economy is called: (A) Technology (B) Natural resources (C) Factors of production (D) Productive mechanism 43. In general, the production function measures (A) Productivity of factors of production (B) Economical relation between factors of production (C) Technical relation between inputs and outputs (D) None of these 44. All factors of production are fixed in the (A) Very long run (B) Very short run (©) Medium run (D) None of th Economics 10 Question Bank with MTP for First Semester Examination Goyal’s48, Iontity, the best combination of resources utilised in production process. (A) Manpower, materials, machine (B) Machine, manpower, method (C) Material, method, machines (D) Method, machine, manpower 4p. Hy eflivieney of labour we mean the productive capacity of (A) Worker (B) Landlord (C) Entrepreneur (D) Housewife 47 All manmade durable goods whieh are used for further production of wealth are included in (A) Labour (8) Capital (C) Land (D) Entrepreneur 48. Things which are available free of cost and are used by man in production are included in (A) Land (B) Capital (C) Labour (D) Organisation 49. Which of the following factor combines the other three factors of production? (A) Labour (B) Land (C) Entrepreneur (D) Capital $0, Besides education, the of a worker makes him more efficient? (A) Training (B) Experience (C) Duration of work (D) Standard of living S1, The efficiency of the workers is governed by 5 (A) Education (B) Training (C) Experience (D) All of these $2, Which of the following are the agents of production? (A) Landlords (B) Labourers (C) Capitalists (D) All of these 53. Identify the example of skilled workers. (A) Chartered accountants (B) Technical experts (C) Company secretaries (D) All of these $4, Which of the following is also called simple or occupational division of labour? (B) Process based division of labour (D) None of these (A) Product based division of labour (C) Territorial division of labour n of labour is _ $8, Process based div (A) Simple (C) Motivating (B) Complex (D) Expensive id gets the reward in the form of __ (B) Wages (C) Rent (D) Profit 56, Capital is productive (A) Interest 57. The reward paid to labour for his services is called — (A) Interest (B) Wages (C) Rent $8, Capital as a factor of production is (A) Immobile (C) Less mobile ew! (D) Profit (B) Highly mobile (D) Very cheap 89 Any work undertaken only for is not regarded as labour. (A) Income (B) Reward (C) Pleasure (D) Spending 60, Which of the following ts 1 (B) Incongenial environment (A) Low wages (C) Cold climate (D) Poor technology Giustion Tank with ATP for First Semester Examination not the cause of low efficiency of Indian labour? Guyal ICSE Feonomics-1061. Efficient labour always _____—_ the total production. (A) Increases (B) Decreases (C) Discourages 62. Concentration or localisation of textiles in Bombay (Mumbai), jute industry in Bengal and sugar industry in U.P. are good examples of (D) None of these (A) Product based division of labour (B) Process based division of labour (C) Territorial division of labour (D) Quality based division of labour 63 Which of the following indicates the disadvantage of division of labour? (A) Saving of time and tools (B) Less cost of production (C) Increase in mobility of labour (D) Lack of responsibility 64. Under complex division of labour, production is undertaken on a ; (A) Large seale (B) Small scale (C) Medium scale (D) None of these 65. Income yielding wealth is called _ (A) Land (B) Labour (C) Capital (D) All of these 66. More number of labour leads to more economic development of the country. (A) Skilled (B) Unskilled (C) Semi-skilled (D) None of these 67. Which of the following is not an input? (A) Labour (B) Land (C) Capital (D) Clothes 68. Which of the following factor undertakes risk involved in production and co-ordinate the production process? (A) Capital (B) Entrepreneur (C) Land (D) Labour 69. The transformation of resources into economic goods and services is called: (A) Technical efficiency (B) Production (C) Consumption (D) Distribution 70. Productivity of land can be raised by following the practice of: (A) Extensive cultivation (B) Better marketing (© Intensive cultivation (D) Increasing money supply 71. Man is helpless in increasing the supply of natural resources such as _ (A) Money (B) Land (©) Labour (D) Capital 72. Which of these refers to man-made goods, such as tools, which are used to produce other goods? (A) Human capital (B) Land resources (C) Capital resources (D) All of these 73. The system in which most of us are employed is called (A) Consumption mechanism (B) Productive mechanism (C) Transport system (D) Exchange process 74. Who was known as ‘the Father of Economics"? (A) Prof. Adam Smith —(B) Prof. Marshall (C) Prof. Robbins (D) Prof Keynes 7S. Material goods are those goods which (A) Can be seen or touched (B) Have definite shape (C) Have definite size (D) All of these 76. Factors of production are used in the (A) Production process (B)_ Consumption process (D) Distribution process Gopal TEBE Economics 1 Question Bark wiih NITP for Birst Somestor Evammaton77. Vintty in goods ereated oF increased by transferring, goods from one place to another is called ualility. 4A) Tine (H) Place (©) Form (D) Service 78. In Foonomies, machines, raw materials, tools ete. are considered (A) Fixed capital (8) Circulating capital (C) Sunk enpital (1D) Physical capital 79, The amount of labour demanded to produce cloth ix a (A) Direet demand (I) Derived demand (€) Commodity demand (D) None of these 80. Which factor of production has a weak bargaining power? (A) Land (8) Capital (C) Labour (D) Entrepreneur 81. In India, some labourers are more efficient than others due to their (A) Ability (B) Training (©) Skill (D) All of these 82. The supply of labour depends upon the (A) Size of the population (B) Growth of population (C) Education (D) Training 83. Agriculture, industries, trade, transport, ete, all require ficient workers (B) Efficient workers Ithy workers (D) All of these 84. If the relations between the employer and employee are friendly and sympathetic, effi labour will be (A) High (B) Low (©) Limited (D) Unlimited ney of 85. The worker specialises either in the production of a single commodity or single sub-process under (B) Division of labour (A) Efficiency of labour (D) Experience of labour (C) Education of labour of division of labour does not include in the efficiency of labour (B) Right man at the right job (D) Production of inferior goods 86, Advantage (A) Increass (C) Saving of time and tools 87, Stock of goods like tools, machinery, plants, trucks, building ete. at a particular point of time refer to the (A) Land (B) Labour (©) Capital (D) Enterprise 88, Without the cooperation of capital goods, even the simplest kind of cannot be carried on. (A) Consumption (B) Production (©) Exchange (D) Distribution 89, Capital can be rightly called the / (A) Outcome of savings (B) Mobilisation of savings (C) Depreciation of savings (D) All of these a C ! 90. Tools fall under the category of capital NE (8) Circulating capital (C) Sunk capital (D) None of these (A) Fixed capital 91. The supply of capital is w Inelastic (B) Elastic (©) Limited (D) Unlimited 92, Debt capital is an example of (A) Fixed capital (B) § Goval’s ICSE Bconomics-10 Question Bank with capital nk capital ©) Fin, MIP for First Semester Examination ial capital (D) Physical capital 7capital capital and debt eapital are the examples of (A) Financial capital (8) Production capital (C) Distribution capital (WD) All of these 94. What makes possible the use of advanced modem machines tn production? (A) Land (B) Labour «C) Capital (D) ALL of these 95. In order to make more capital goods, society has to divert its productive resourves trom the production of goods to the production of capital goods (A) Consumer (B) Machinery (C) Equipment (D) Buildings: 96. Capital formation (or net investment) is equal to total investment (A) Minus appreciation (B) Minus depreciation (C) Plus depreciation (D) Plus appreciation 97. To provide the necessary tools and implements to the workers for productivity. purposes — is used (A) Land (B) Labour (C) Capital {D) All of these 98. The in the process of capital formation is saving. (A) First stage (B) Second stage (C) Third stage (D) Fourth stage 99. Which of these is generally lacking in underdeveloped countries like India which ereate an improper atmosphere for the capital formation? (A) Roads (B) Communication (C) Education (D) All of these 100. In India, due to absence of able entrepreneurs, establishment of industries and expansion is quite (A) Vast (B) Expanded (C) Limited (D) Unlimited 101. Voluntary savings are not enough for capital formation in an underdeveloped economy lke where people are very poor (A) Japan (B) India (C) USA (D) Germany 102. According to FH. Knight, “An isa person who performs dual functions of risk-taking and control.” (A) Labour (B) Government (C) Consumer (D) Entrepreneur 103. In production, the entrepreneur himsell is the organiser (A) Small scale (B) Medium scale (C) Large seale (D) None of these 104, Labourers get for the tasks they perform, whereas an entrepreneur hopes to yet protit (A) Rent (B) Wages (C) Interest (D) Revenue 105. Innovation is considered as an important function of (A) An entrepreneur (B) Government (C) Consumer (D) Shopkeeper 106. Entrepreneurs generate employment opportunities andl thus help) W reduce problem in the country. (A) Food (B) Hdueation (©) Transport (DY Unemployment 107. The size of national income is largely determined by the anwount ant quality ot (A) Natural resources (H) Mineral resoutves (C) Capital resources (D) Entrepreneurial 4 108. Which is the mixed result of past labour of workers working on natural HexTuTees (A) Land (B) Capital [C) Skilled labour (DY Hatiyproneur Goyal’ ASE Feomomiss 10 Qwestion Hank with NEE 0109. The availability of factors of production determines the extent to which ____is possible. (A) Mobilisation of labour (B) Capitalisation of labour (C) Division of labour (D) All of these 110. The term division of labour is also called (A) Universalisation _ (B) Nationalisation —_(C) Specialisation (D) Mobilisation 111. The division of labour leads to a great increase in efficiency and hence (A) Production (B) Consumption (C) Exchange (D) Distribution 112, There are more possibilities of __ under division of labour. (A) Inventions (B) Innovations (©) Research (D) All of these 113. In order to improve the of labour, the payment of wages should be fair and prompt (A) Division (B) Efficiency (©) Condition (D) Health 114, Which of the following moral qualities increases the efficiency of labour? (A) Responsible (B) Honest (C) Dutiful (D) All of these . Unhygienic conditions have affected the efficiency of Indian workers (A) Favourably (B) Adversely (C) Moderately (D) Broadly 116. Identify the reason for low bargaining power of labour. (A) Labour is perishable (B) Labourers are generally poor (C) Lack of organization among workers (D) All of these 117. The of labour is inelastic in a country at a particular time, (A) Demand (B) Supply (C) Profit (D) Interest 118. Identify the example of physical labour. (A) Teacher (B) Doctor (©) Carpenter (D) Engineer 119. Identify the example of mental labour. (A) Weaver (B) Farmer (©) Teacher (D) Sweeper 120. Changing of wheat into flour in a flour mill is the example of of utility (A) Destruction (B) Movement (C) Creation (D) Transformation 121. A process in which some materials are transformed from one form to another is called (A) Production (B) Exchange (©) Distribution (D) Division 122. While creating utility, some value must be (A) Reduced (B) Added (C) Damaged (D) None of these 123. Which of these factors of production a farmer needs in order to produce wheat? (A) Land (B) Implements (©) Labour (D) All of these 124. Which of the following are not treated as labour? (A) Teaching his own child by a teacher (B) Nursing her own baby by the mother (C) Housewife doing domestic work (D) All of these 12, All factors of production can broadly be classified into categories. (A) Two (B) Three (©) Four (D) Five 126. Capital includes all man made __ (A) Non-durable goods (B) Durable goods (©) Semi-durable goods (D) Expensive goods Feonomics 10 Qasiton Bank with MP for First Semester Examination ‘127, A ____ helps in production by using his skill and knowledge. (A) Capitalist (B) Landlord «c) 128. Which factors of production are original and are available even before production takes place (A) Primary factors of production (B) Secondary factors of production (D) Organiser (C) Tertiary factors of production (D) Alternate factors of production 129. Non-factor inputs are also called (A) Fixed goods (B) Intermediate goods (C) Consumption goods (D) Production goods 130. In everyday usage, by ‘land’ we mean the surface of the earth but in economics, which of the following features are included in land? (A) Indispensable factor of production (B) Passive factor of production (C) Free gift of nature (D) All of these 131, Land located in a river valley is likely to be (A) Less productive (B) More productive (C) Unproductive (D) Limited productive 132. The main souree of our agricultural activities is, (A) Land (B) Labour (©) Capital (D) Entrepreneur 133. The average output per unit of land is called : (A) Fentility (B) Productivity (© Output (D) Input 134. In India, land productivity is low partly because the average size of holdings is (A) Large (B) Medium (C) Small (D) Very large 135. Which of these land development measures affect productivity of land? (A) Provision of well or tube well irrigation (B) Proper drainage (C) Proper fencing (D) Alll of these 136. Identify the factor that is essential to increase productivity of land. (A) Trained workers (B) Modern implements (C) Scientific methods (D) All of these 137. On the basis of skill formation, labour can be grouped into main categories. (A) Two (B) Three (©) Four (D) Five 138. Which factor of production differs in efficiency? (A) Land (B) Labour (C) Capital (D) Entrepreneur 139. Which fields of production require sufficient, efficient and healthy workers? (A) Agriculture (B) Industries (C) Trade (D) All of these 140. According to Lord Keynes, the basis of consumption is (A) Labour (B) Land (C) Consumer (D) Producer 141, Identify the factors not responsible for increasing the efficiency of labour. (A) Standard of living (B) Hereditary qualities (C) Hot climate (D) Level of wages 142. Under the worker specialises either in the production of a single commodity or single sub-process. (A) Efficiency of labour (B) Division of labour (C) Classification of labour (D) Competition of labour a Goyal’s ICSE Economics-10 Question Bank with MTP for First Semester Examination142. The division of work benween the workers engaged HH producing ent, bean example af " (UY) Vertiont division af labout (C) Incomplete division of labour (D) Complete division of about (AY Horizontal division of la 144, Which type of division of labour ix baved an capital-ditensive techniques of production (A) Product based division of labour (B) Process bined divinion of labour (C) Incomplete division of labour (D) None ot theve 148, Which type of division of labour iy based on labourintensive techniques af production (A) Product based division of labour (HY Process haved division of labour (©) Incomplete division of labour (D) None of these 146. Which of the following is not an advantage of division of labour to producers? (A) Increases the size of production (1) Increases quality of production (©) Improvement in the standard of living +(D) Reduction in cost of production 147, is the physical capital (A) Tools (B) Building (C) Machines (D) All of these 148. Savings in a country depend upon which of the following factors? (A) Ability to save (B) Desire to save (C) Opportunities to save (D) All of th : 149. Identify the factor that encourages entrepreneurs and promote capital formation (A) Favourable business conditions (B) Technical progress (©) Government encouragement through low taxes (D) All of these 150, High level of taxes on property and income in India affect the savings and accumulation of eapital (A) Adversely (B) Favourably (C) Moderately (D) Ettectively Gopal TSE Fromm FO Darton Bank wth ITP for Fis Somer Esaminaton iTheory of Demand and Supply OI TE TS PERM alae ‘© Want will become demand when a person ts ready to purchase the sp at a particular price © The term ‘demand’ is made to show the relationship b quantity of the commodity, which a consumer wants to purchase at a specific price, time and place are: (i) Direct demand (ii) Derived demand (iit) Joint ific quantity of the commodity tween the price of a commodity and the © There can be different forms of demand. The} demand (iv) Composite demand (v) Compet ‘@ When a commodity is jointly demanded with some other commodity, we call it joint demand posite demand ive demand © The demand for a commodity which can be put to several uses is known as com The demand for such commodities which are directly demanded by the consumer for the satisfaction of his want is known as direct demand © If a thing is needed for producing some other goods, which we actually need, is called derived demand ‘@ When two commodities are close substitutes of each other, an increase in the quantity demanded of one of them will reduce the demand for the other. All such commodities are in competitive demand with one another. ‘© There are several factors on which the demand for a commodity depends. These factors may be economic, social as well as political ‘© The influence of these factors on demand is called demand function. Factors affecting demand are, price of the commodity, price of related goods, income of the consumer, tastes and preferences, ete. © Supply refers to the quantity of a good, which a producer is willing to bring to the market at a particular price during a period of time. Price, desired quantity of supply, period of time are the three essential features of supply. Supply is a desired quantity of sale at a given price while stock means actual supply which can be brought to the market for sale at short notice ‘© The following are the factors, in general, on which the supply of a commodity depends (i) Price of the commodity (ii) Price of related commodities (iii) Goals of the firm (iv) Prices of factors of production used in making the commodity (v) State of technology (vi) Number of producers (vii) Future expectations regarding change in price (viii) Taxes and subsidies (ix) Natural factors (x) Means of transportation and communication MIP for First Semester Evumunatest n ——Gonal’s ICSE Econamics-10 Question Bank with ee aa1, The demand is always at a (A) Cost (B) Price (C) Value (D) None of these 2. Which is the correct pair of commodities in case of substitute goods? (A) Coffee and milk (B) Pen and ink (C) Mustard oil and coconut oil (D) Diamond and soap 3. In which type of good demand falls with a rise in income levels of households? (A) Inferior goods (B) Substitute goods (C) Luxury goods (D) Necessary goods 4. Demand always refers to a specific desired quantity which a person is willing to (A) Sell (B) Purchase (C) Store (D) Exchange 5. When change in price of goods-X influences demand for good-Y, then demand is called: (A) Price demand (B) Income demand (C) Desired demand (D) Cross Demand 6. In ordinary sense, which of the following terms have the same meaning? (A) Desire (B) Want (C) Demand (D) All of these 7. A mere wish to have a commodity is known as (A) Desire (B) Want (©) Demand (D) None of these 8. Want contains which of the following elements? (A) Desire for a commodity (B) Means to buy (C) Readiness to spend (D) All of these 9. Demand has its reference to a period of time ic., (A) Per day (B) Per week (C) Per month (D) All of these 10, Want will become demand when a person is ready to purchase the specific quantity of the commodity at a particular . (A) Price (B) Cost (©) Value (D) All of these 11. The term ‘demand’ is made to show the relationship between the price of a commodity and the (A) Quantity of the commodity (B) Quality of the commodity (C) Value of the commodity (D) None of these 12. If we say that a household purchases 3 litres of milk per day @ %40 per litre, then 3 litres of milk will be called the (A) Supply (B) Demand (C) Quantity (D) Amount 13. Which of the following are the essentials of demand? (A) Quantity (B) Pri (C) Time (D) All of these 14, How many main features demand has? (A) One (B) Two (C) Three (D) Four 15. The consumer must state the at which he is prepared to purchase the specific quantity of the commodity. (A) Cost (B) Quantity (C) Prive (D) Value 16, Demand must mean demand per unit of time and (A) Per month (B) Per week (C) Per day (D) All of these 17. A set of points of contact between buyers and sellers is called ee (A) Market (B) Area (C) Place (D) Situation ter Examination Goyal’s ICSE Econc (0 Question Bank with MTP.18, 19, 20. a. 22, 23. 24, 28. 26. Demand for milk is a 20. 29. 30. 3. 32, When two or more goods are required together to satisfy a particular want, it is calleg (A) Composite demand (B) Joint demand (C) Direct demand (D) Derived demand Demand is always held in the a (A) Household (B) Production unit (C) Market (D) Residential area Under demand a commodity is jointly demanded with some other commodity (A) Direct (B) Derived (C) Composite (D) Joint Joint demand is also called _ demand (A) Complementary (B) Supplementary (C) Independent (D) Dependent Which of the following is not an example of joint demand? (A) Pen and ink (B) Car and petrol (C) Bread and butter (D) Cycle and clothes The demand for a commodity which can be put to several uses is known as _ (A) Direct demand (B) Composite demand (C) Derived demand (D) Joint demand Different uses of coal include (A) Heating (B) Cooking (C) Operating railway engine (D) All of these Electricity is demanded by (A) Farmers (B) Household (C) Industries (D) All of these demand because milk is used for preparing cheese, butter, curd, sweets, tea, etc. (A) Composite demand (B) Price demand (C) Income demand (D) Direct demand The demand for such commodities which are directly demanded by the consumer for the satisfaction of his want is known as (A) Indirect demand (B) Direct demand (C) Open demand —_—_(D) Special demand . Direct demand satisfy human wants (A) Directly (B) Indirectly (©) Vertically (D) All of these Which type of demand is also known as autonomous demand? (A) Income demand (B) Joint demand (C) Direct demand (D) Indirect demand Autonomous demand is _ ___ demand for other commodities (A) Dependent (B) Independent (C) Sharing (D) Divided If a thing is needed for __ some other goods, which we actually need, is called derived demand, (A) Producing (B) Consuming (C) Marketing (D) None of these Identify the type of demand for workers in a cycle factory (A) Joint demand (B) Composite demand (C) Derived demand (D) Income demand a Goyal’ ICSE Economics 10 Question Bank with NIP Jor First Semester Fxaninao33, Demand for TV. and Air Conditioners is _ - (A) Direct (B) Derived (C) Joint (D) Composite 34, Demand for a house is direct demand but the demand for bricks, cement, iron, wood, etc. is (A) Joint demand (B) Direct demand (C) Composite demand (D) Derived demand 35. If demand for houses goes up, demand for factors of production such as labour, cement, iron, bricks, ete. will (A) Go up (B) Go down (C) Remain same (D) None of these 36, When two commodities are close substitutes of each other, an increase in the quantity demanded of one of them will _ the demand for the other. (A) Pull up. (B) Reduce (C) Not affect (D) Positively affect 37. More purchase of one thing will require less purchase of others in case of __ demand. (A) Competitive (B) Independent (C) Dependent (D) Derived 38. An increased demand for coffee might the demand for tea (A) Not affect (B) Reduce (C) Increase (D) None of these 39. The demand for goods can be put to several uses. (A) Competitive (B) Autonomous (C) Composite (D) Indirect 40. The demand for capital is . (A) Direct (B) Derived (C) Free (D) Elastic 41. If the prices of factors of production decreases, then the supply will: (A) Decrease (B) Increase (C) Zero (D) None of the above 42. In economies, price and demand are related, (A) Not (B) Positively (C) Directly (D) Inversely 43. In economics, vegetable and salt are examples of demand. (A) Complementary (B) Competitive (©) Substitute (D) Composite 44. Sugarcane and molasses are examples of (A) Inferior goods (B) Superior goods (C) Jointly produced goods (D) Composite goods 45. Which of the following is an example of composite deman (A) Clothes (B) Bread (C) Electricity (D) Tea and coffee 46. A change in the demand for fish might __the demand for wheat in case of competitive demand. (A) Not affect (B) Increase (C) Reduce (D) None of these 47. Coke and Pepsi are the examples of (A) Derived goods (B) Substitute goods (C) Inferior goods (D) All of the above 48. Jawar and Bajra are the examples of (A) Derived goods (B) Substitute goods (C) Inferior goods (D) Complementary goods 49. If the cost of factors of production is high then the supply will __ (A) Be constant (B) Decrease (C) Increase (D) Be zero Goyal 5 1C i MIP for First Semester Examination 0 Ou50. The demand for __inereases with the inerease in income of the consumers (A) Inferior goods (B) Giffen goods (©) Normal goods (D) Coarse goods $1. The producers prefer to supply when the prices are high. (A) Less (B) More (©) Same (D) Negative 52. Bread and butter are examples of (A) Substitute goods (B) Complementary goods (©) Luxury goods (D) Inferior goods 53. When the government gives tax then the supply of goods will decrease. (A) Concession (B) Restriction (©) Imposition (D) Relaxation 54. Generally, demand for goods decreases during __ period. (A) Stagnation (B) Depression () Inflation (D) All of these $8. Different factors on which the demand for a commodity depends include (A) Economic (B) Social (©) Political (D) All of these 56. The influence of different factors on demand is called (A) Supply funetion (B) Demand function (C) Demand process (D) Cost function 57. Demand function shows the functional relationship between demand of a commodity by a consumer in the market and its various (A) Suppliers (B) Determinants (C) Producers (D) Sellers 58. Market shows the functional relationship between demand of a commodity by all the consumers in the market and its various determinants. (A) Demand function (B) Supply function (©) Cost function (D) Purchase function 59, Of all the factors affecting demand, is the most important factor (A) Price (B) Cost (C) Market structure (D) Government policies 60. Other things being equal, demand for a commodity when its price falls (A) Decreases (B) Remains same (C) Increases (D) Becomes zero 61. Other things being equal, demand for a commodity when its price rises (A) Increases (B) Decreases (C) Remains same (D) Becomes very high 62. If people fear that there will be shortage of commodities and hence rise in their prices in future, they may now their demand for the commodities (A) Zero (B) Decrease (C) Increase (D) Affect 63. The demand for a commodity depends not only on its own price, but also on the prices of (A) Substitute goods (B) Complementary goods (C) Unrelated goods (D) Related goods 64. If a change in the price of one good affects the demand for another good, itis called (A) Cross demand (B) Price demand (C) Income demand (D) All of these Tor First Semester Examination . Gavals TSE Economics 10 Question Bank wath65. Two goods are _. if one can be used in place of the other. (A) Important goods (B) Unimportant goods (C) Substitute goods (D) Complementary goods 66. Substitute goods are also called (A) Competitive goods (B) Complementary goods (C) Expensive goods (D) Inferior goods 67. Competitive goods compete with each other for in the market. (A) Production (B) Supply (C) Demand (D) Consumption 68. There is a __ ______ relation between the price of a substitute and the demand for the given good. (A) Indirect (B) Direct (©) Zero (D) All of these 69. With the fall in price of a substitute (coffee), the demand for the given good (say tea) (A) Falls (B) Rise (©) Remain same (D) Becomes zero 70. With the rise in price of a cars, the demand for petrol . (A) Increases (B) Decreases (C) Remain same (D) Becomes zero 71. Those goods which are not used together to satisfy a particular want are called (A) Substitute goods (B) Complementary goods (C) Joint goods (D) Not related goods 72. Which of these is not an example of complementary goods? (A) Car and petrol (B) Shirt and buttons (C) Tea and coffee (D) Bread and butter 73. Which of these is not an example of substitute goods? (A) Tea and coffee (B) Shoes and chappals (C) Trousers and Jeans (D) Pen and ink 74. There is an relation between the price of a complementary good and demand for the given good. (A) Inverse (B) Positive (C) Direct (D) Zero 75. A rise in the price of milk leads to in demand for tea. (A) Fall (B) Rise (C) No effect (D) Positive change 76. Other things being equal, generally, there is a between the consumer's income and the demand for a commodity. (A) No relationship (B) Indir relationship (C) Direct relationship () Ne relationship 77. However, the effect of change in income on consumer's demand depends upon the __ (A) Nature of the commodity (B) Market of the commodity (C) Quantity of the commodity (D) Cost of the commodity 78. A consumer decreases his demand for milk, clothes, furniture, reltigerators and TV. sets etc. as his income (A) Decreases (B) Increases (C) Remain same (D) All of these 79. Sate the relationship between income of the consumer and the amount demanded of inferior goods. (A) Inverse (B) Direct (©) Indirect (D) Positive Goyal TESE Ecomomic-10 Question Bank with MIP for First Semester Examination80. Which of the following is considered an inferior good? (A) Full cream mitk (B) Toned mith (C) Pure milk (D) None of these 81. Toned milk which was a normal good at low level of income becomes an _ at higher level of income (A) Inferior good (B) Superior good (C) Necessary good (D) Luxury good 82. Favourable change in tastes and preferences the demand for the commodity. (A) Decreases (B) Increases (C) Will not affect (D) Zero 83. Demand for __ will increase, if car loans from banks are easily and cheaply available (A) Books (B) Clothes (C) Cars (D) TV. 84. Demand for residential houses will ___, if home loans are made cheaper. (A) Rise (B) Fall (C) Remain same (D) Become zero 88. If there are more poor people living in a society, the demand for __ of life will be more (A) Necessities (B) Luxuries (C) Comforts (D) All of these 86. Increase in the percentage of rich people will increase the demand for __ (A) Necessary goods (B) Luxury goods (C) Comfort goods (D) Inferior goods 87, Increase in population in a country the overall demand for commodities (A) Increases (B) Decreases (C) Does not effect (D) Doubles 88. In economics, the distribution of population on the basis of sex, age, etc. is known as (A) Distribution of population (B) Composition of population (C) Structure of population (D) Pattern of population 89. An increase in population would increase the demand for cosmetics, sarees, ete. (A) Male (B) Female (C) Children (D) Senior citizen 90. In the rainy season, umbrellas and raincoats are in 5 (A) Great demand (B) Less demand (©) Same demand (D) Negative demand 91. The demand for a particular commodity or commodities of a country is also affected by the (A) Producer’s policy (B) Consumer’s policy (C) Government policy (D) International policy 92. The level of demand goes up during the period of (A) Boom (B) Depression (C) Stagnation (D) All of these 93. The quantity offered for sale at a particular price and time by the producer is known as (A) Supply of a commodity (B) Demand for a commodity (C) Price of the commodity (D) Sale of producer 94. The amount offered for sale per unit of time is called (A) Demand (B) Cost (C) Production (D) Supply 95. Which of the following things may be noted with regard to supply? (A) Desired quantity (B) Related to price (C) Flow variable (D) All of these ts Goyal’ 1CSE Economics-10 Question Bank with MIP for Fist Semester Examination‘ 96. Supply isa Which producers are willing to sell at a particular price. (A) Desired quantity (B) Produced quantity (©) Demanded quantity (D) Wanted quantity 97. Supply of a commodity has always a reference to (A) Pri (B) Cost (C) Area (D) Market 98. Supply refers to the amount of goods which producers or sellers are willing to sell during a specific time period of (A) Per day (B) Per month (C) Per annum (D) All of these 99. The total quantity of a commodity that can be brought into the market for sale at a short notice is called (A) Flow (B) Stock (C) Reserves (D) Production 100. That part of stock which a seller is prepared to sell at a given price is called - (A) Supply (B) Demand (©) Stock (D) Flow 101. If the producer sells whole of his stock at the prevailing market price, then supply will with the stock, (A) Increase (B) Decrease (©) Coincide (D) Remain same 102, Supply is always the stock except in case of perishable goods, (A) Less than (B) More than (©) Equal to (D) All of these 103. Stock is always supply except in case of perishable goods. (A) Less than (B) Greater than (C) Equal to (D) All of these 104. Which of the following factors determine supply of a commodity? (A) Price of the commodity (B) Price of other commodities (C) Goals of firms (D) All of these 10S. Which of the following factors does not directly determine supply of a commodity? (A) Price of the commodity (B) Price of other commodities (C) Income of consumers (D) Goals of firms 106. Quantity of a commodity which any one producer is willing to produce and offer for sale is known as (A) Individual supply (B) Market supply (C) Total supply (D) Particular supply 107. A single producing unit or producer is called (A) A firm (B) An industry (C) A producer (D) A seller 108. The sum total of supply of a commodity made by Individual firms is called (A) Individual supply (B) Market supply (C) Total supply (D) Commodity supply 109. Which is the most important determinant of supply? (A) Price of the commodity (B) Price of other commodities (C) Goals of firms (D) State of technology M0. Higher the price of the commodity, the __will be the supply. (A) Larger (C) Same (D) Zero jor Frat Somat Examination 74. 8. 119. 120. 121, 122, » As the price rises, the in the expectation of earning larger profit will increase the supply of the commodity (A) Consumer (B) Producer (C) Seller (D) Government When prices of all other commodities increase, the supply of the existing commodity (A) Remain same (B) Rises (C) Falls (D) Becomes zero If the goal of producers is to maximise profits, will be supplied at high price, (A) More quantity (B) Less quantity (©) Same quantity (D) Inferior commodity Ie the firms want to maximise their sales (as they think that increased supply is @ source of status, and prestige in the market), more quantity will be supplied even at the _ (A) Same price (B) Increased price (C) Decreased price (D) All of these What will be the effect on supply with a fall in the prices of factors of production? (A) Supply will increase (B) Supply will decrease (C) Supply will remain same (D) Supply will become zero If the prices of factors of production rises, supply will (A) Be unlimited (B) Be limited (C) Increase (D) Decrease - How the use of improved and advanced technology in the process of production affect supply” (A) Supply will remain same (B) Supply will be limited (C) Supply will increase (D) Supply will decrease Using old and inferior techniques of produetion will (A) Decrease supply (B) Increase supply (C) Limit supply (D) Control supply A group of firms producing same kind of goods is called (A) Firms (B) Industry (©) Business (D) Market If the number of firms producing a particular commodity increases, market supply of the commodity will (A) Increase (B) Decrease (C) Remain same (D) Zero How the huge profits of existing firms of an industry will affect supply? (A) Supply will decrease (B) Supply will increase (C) Supply will be limited (D) Supply will be untimited How the losses of existing firms of an industry will affect supply? (A) Supply of its product will decline (B) Supply of its product will be same (C) Supply of its product will increase (D) Supply will be zero If the producers expect a fall in the price in near future they will the present supply. (A) Increase (B) De (C) Limit (D) Stop | If higher tax is levied on a commodity, its producers will now supply of it at the same price (A) More quantity (B) Same quantity (C) Less quantity (D) Zeto quantity Tax induce producers to supply more (A) Concessions (B) Subsidies (C) Decrease (D) All of these Goval’s ICSE Beonomies 10 Question Bank with NTP for First Semester Examinanon126, Imposition of tay makes the production (A) Costlier (B) Cheaper (C) Ditticutt (D) Limited 127. Granting of subsidies to the producers will make the goods (A) Costlier (B) Cheaper (C) Ditferent (D) Unlimited 128, Which of the following is not a natural factor? (A) Amount of rainfall (B) Fertility of the soil (©) Labour problem (D) Climatic conditions 129. The supply of agricultural commodities largely depends upon (A) Economie factors (B) Technical factors (C) Political factors (D) Natural factors: 130. What helps in maintaining adequate supply of the commodities all over the country? (A) Proper development (B) Growth of means of transport and communication (C) Good infrastructure (D) All of these IB. Price and demand are negatively related in case of (A) Necessities (B) Normal goods (C) Comforts (D) Luxuries 132, The supply of a good refers to: (A) Actual production of goods (B) Total stock of goods (C) Stock availability of goods (D) Amount of goods offered for sale at a particular price per unit time 133. Which factor is mainly responsible for increase in demand of natural resources? (A) Environmental pollution ¢ of biodegradable resources (C) Increased human population ientific advancement 134, Installation of machinery with latest technology reduces the cost of production and leads to (A) No effect in supply (B) Same supply (C) Increase in supply (D) Decrease in supply 135. Supply of a product is increased by (A) Improvement in technology (B) D (C) Decrease in prices of factors of production (D) All of these crease in prices of other goods 136, will become demand when a person is ready to purchase the specific quantity: of the commodity at 4 particular price. (A) Desire (B) Wish (C) Want (D) None of these 137. Which is not the determinant of demand function? (A) Substitute goods (B) Normal goods (C) Complementary goods (D) Distribution of income 138. Which of these goods are called low quality goods? (A) Substitute goods (B) Complementary goods (C) Normal goods (D) Inferior goods 139. The goods which are generally demanded by low-income groups are called (A) Substitute goods (B) Complementary goods (C) Inferior goods (D) Normal goods ‘Question Rank with MTP for Bust Semester Examination - m1 Goyal TSE Beonomics140. There is a direct relationship between the consumer's income and ___ (A) Price of the commodity (B) Price of related goods (C) Demand for a commodity (D) Tastes and preferences 141. High cost of production due to increased prices of factors of production results im (A) Decrease in supply (B) Increase in supply (©) No change in supply (D) None of these 142. Decrease in GST which reduces the cost of production leads to (A) Decrease in supply (B) Increase in supply (©) No change in supply (D) Zero supply 143. Which one of following is not an essential clement of supply? (A) Price of the commodity (B) Period of time (C) Willingness to buy (D) Quantity of the commodity 144. Which of the following is considered necessary to complete the statement about demand for a good” (A) Price of the good (B) Period of time (C) Quantity of the good (D) All the above 145. Which of the following is a complement product to peanut butter? (A) Sugar (B) Bread (©) Jelly (D) Soda 146. In which type of goods, demand is not affected with an increase in income? (A) Private goods (B) Normal goods (©) Public goods (D) Inferior goods 147. A superior commodity is one which is consumed in greater quantities, when the income of consumer: (A) Rises (B) Falls (C) Remains the same (D) Becomes zero 148. Which one of the following is not a determinant of supply? (A) Price of the given commodity (B) Taxation policy (C) Number of firms (D) Tastes and preferences of consumers 149. In which of the following goods, increase in the income of the consumer causes an increase in demand? (A) Substitute goods (B) Normal goods (C) Complementary goods (D) Inferior goods 150. If demand for “Full Cream Milk” increases with increase in income”, then it is _ (A) Normal good (B) Substitute good (C) Complementary good (D) Giffen good 2 7 ~~ Gayail’s ICSE Economics-10 Question Bank with MTP for First Semester ExaminationMarket ener POEM Od lalla @ In every day usage the word “market” means a group of shops where the buy rs and sellers can tions of goods and services en In economics. market refers to the whole area where buyers and selle competition with each other to effect purchase and sale of the commodity.” # On the basis of degree of competition, markets in a capitalist economy can be classified into four types. These are 1. Perfect Competition 2. Monopoly 3. Monopolistic Competition 4. Oligopoly ‘Perfect competition is a market situation, where there are a large number of buyers and sellers selling identical products ‘© Features of perfect competition are: (i) The number of buyers and sellers is very large so that none of them is able to influence the prevailing market price. (ii) Products sold by different sellers in the market are homogeneous. (iii) Buyers and sellers are free to enter or leave the industry at any time (iv) Buyers and sellers have perfect knowledge about the prices and cost prevailing in the market This implies that there is close contact between the buyers and sellers. Thus. monopoly refers to a market situation where there is only single seller. Buyers have no option but to purchase the commodity from that seller or go without it. There are no close substitutes for the commodity sold by the only seller «Main features of monopoly are: (i) Only single seller/producer of a commodity. So firms and industry are synonyms for each other. (ii) No close substitutes of the product are available in the market (iii) There are barriers upon the entry of the new firms in the market. (iv) Firm is price-maker (or price-setter). (v) A monopolist may charge a single price for the product he sells or may charge different prices for his product from different sets of consumers. ‘© Monopolistic competition is a market situation where there are a large number of buyers and sellers selling closely related goods but surely not homogeneous ‘© Main features of monopolistic competition are : (i) There are a large number of buyers and sellers of the commodity. (ii) Goods produced by various sellers are not identical but they are slightly different They are close substitutes for each other but not perfect substitutes, (iti) New firms are free to enter into the market and existing firms are free to quit it. (iv) Firms here compete with each other by spending huge amount of money on advertisement, publicity, ete. (v) Every firm (or seller) has its own price and output policy. (vi) There also exists non-price competition. (vii) Buyers and sellers tions ge in trans: of a commodity are in lack perfect knowledge about the market con © Oligopoly is that situation of a market in which there are very few sellers of a commodity. Individual seller has a large share in the total supply of the market, therefore he can influence the activities of other sellers and prices of the commodity. The markets of soft drinks, cars, scooters, ete., are examples of oligopoly © Oligopolistic firms are mutually interdependent. When a oligopolistic firm mak that influences its price, it also influences the price of its competitors. an output decision Goyal’ ICSE onomics-10 Question Bank with MIP jor Furst Semester Examination zos” 1. The whole area where buyers and seers of a commodity are in competition with each gther 4, effect purchase and sale of the commodity is known as (A) Market (B) Fir (C) Industry (D) Specific area 2. In economies, market has essential features (A) Two (B) Three (C) Four (D) Five 3. Market spreads over an area which may be large or small depending on the spread of buyer, and (A) Competition (B) Sellers (C) Commodity (D) Area 4. On the basis of degree of competition, markets in a capitalist economy can be classified into (A) Two types (B) Three types (C) Four types (D) Five types S. Under market, firms are mutually interdependent. (A) Monopolistic competition (B) Perfect Competition (C) Monopoly (D) Oligopoly 6. The existence of ____ among buyers and sellers is an essential condition for the existence of a market, (A) Competition (B) Area (©) Commodity (D) All of these 7. A market situation, where there are a large number of buyers and sellers selling identical products (A) Perfect competition (B) Monopolistic competition (©) Monopoly (D) Oligopoly } Identify the type of market in which the commodity is sold at uniform price? (A) Perfect competition (B) Monopolistic competition (C) Monopoly (D) Oligopoly 9. The distinct features of perfect competition include (A) Very large number of buyers and sellers (B) Homogeneous product (C) Perfect knowledge (D) All of these 10. Under perfect competition, the seller can sell any amount of output at the (A) Prevailing market price (B) Prevailing market condition (C) Changing market price (D) All of these 11. The words ‘large number’ imply that the number of sellers is so large that a single seller's share in total market supply of the product is (A) Small (B) Insignificant (C) Significant (D) Very large 12. Under perfect competition buyers and sellers are (A) Price makers (B) Price takers (C) Commodity makers (D) Commodity takers u 13. Under which type of market, the firm faces no demand constraint at the market determined price (A) Perfect compel (B) Monopolistic competition (C) Monopoly (D) Oligopoly 14, Under perfect competition, all sellers sell completely goods (A) Costlier (B) Cheaper (©) Mentical (D) Ditterentiated 15, Products which are identical in quality, shape, size, colour, design, packing, ete. are called (A) Homogeneous products (B) Differentiated produ (C) Similar products (D) All of these _ Gaul’ ICSE Evinomics TO Question Bank wath MIP for First Semester Eamon16. When the product sold by the sellers is identical, no seller can ___the price of his product (A) Decrease (B) Increase (C) Make insignificant changes (D) All of these 17. The products of different firms are different but are close substitutes for each other in (A) Pure oligopoly (B) Collusive oligopoly (C) Non-collusive oligopoly (D) Differentiated oligopoly 18. Which is not a characteristic of monopoly? (A) Single seller (B) Price maker (©) Product differentiation (D) Barriers on entry and exit of firms 19. Which market form shares features of both perfect competition and monopoly? (A) Monopolistic competition (B) Duopoly (C) Oligopoly (D) Monopoly 20. There is complete interdependence among different firms in . (A) Monopoly (B) Perfect competition (C) Oligopoly (D) Monopolistic competition 21. Firm is a price taker under (A) Oligopoly . (B) Monopoly (C) Perfect competition (D) Monopolistic competition 22, In the situation of perfect market, the firm faces no constraint at the market determined price. (A) Supply (B) Demand (©) Price (D) Cost 23. Free entry and exit of firms under perfect competition imply that abnormal profits are (A) High (B) Low (©) Zero (D) Same 24. In the long run, perfectly competitive firms will be able to manage only (A) Normal profits (B) Abnormal profits (C) Zero profits (D) Super-normal profits 25. “Shampoo” is a product of which type of market form? (A) Oligopoly (B) Monopoly (C) Perfect competition (D) Monopolistic competition 26. “Homogeneous product” is a distinguishing feature of which form of market? (A) Monopolistic competition (B) Perfect competition (C) Monopoly (D) Oligopoly 27. *Airtel’ is an example of (A) Perfect competition (B) Monopolistic competition (C) Monopoly (D) Oligopoly 28. Freedom of entry and exit is possible in the: (A) Very short run (B) Short run (C) Long run (D) Very tong run 29. Charging different prices from different buyers for the same good is called: (A) Price extension (B) Price contraction (C) Price discrimination (D) Price control 30. ‘Tata Power Delhi Distribution Limited’ is an example of: (A) Perfect competition (B) Monopoly (C) Monopolistic competition (D) None of these im Bank with WIP or Ft Someser Exainaton % Goyal’s ICSE Economics-10 Ques3L. How much selling costs are incurred in case of perfect competition? (A) Very high (B) Very less (C) Zero (D) Negligible 32. Car industry of India is a good example of (A) Monopoly (B) Oligopoly (©) Monopolistie competition (D) Perfect competition 33, Oligopoly is the market structure in which there are: (A) Many sellers and many buyers (B) Few sellers and few buyers (C) One seller and many buyers (D) None of these 34. Which of th se is not a market structure in economics? (A) Perteet competition (B) Monopoly (C) Monopolistic competition (D) Intense competition 38, On what basis, monopoly, monopolistic competition and oligopoly are similar to each other? (A) Number of sellers (B) Selling cost (C) Price determination (D) Level of knowledge 36. In monopolistic competition, there a (A) Few firms selling differentiated products (B) Large number of firms selling differentiated products (C) Large number of firms selling homogeneous products (D) Few firms selling homogeneous products 37. Consumers get maximum variety of goods under which condition? (A) Perfect competition (B) Monopolistic competition (C) Monopoly (D) Pure competition 38. The major difference between perfect competition ané monopolistic competition is: (A) Number of firms (B) Rate of profits (C) Differentiated product (D) Free exit and entry 39, Implication of very large number of firms in perfectly competitive market is: (A) No single seller on its own can influence the price (i) Firm becomes price (© Entry of a new firm becomes difficult (D) None of these 40. ‘means that an individual firm has no option but to sell at a price determined by the industry (A) Price taker (B) Price maker (C) Product differentiation (D) Identical product 41, Firm in a monopolistic market are price (A) Takers (B) Makers (C) Givers (D) Acceptors 42. Which of the following markets comes lo (A) Wheat market (B) Cold drinks market (C) Cigarette market (D) Stock market 43, Normal profit is called normal because (A) It is neither very high nor very low (B) IL is minimum acceptable to the producer (C) 11s minimum whieh buyer wants to pay (D) Its the minimum allowed by goveiment 44, In monopolintic competition, the products are supported with advertisements. (A) Heterogenous (B) Homogeneous (C€) Both (A) and (A) (D) Differentiated u Cayuls 1ESE Economics-10 Quesion Bank with MTP for Fist Semester Examination45, Basic difference between monopolistic competition and oligopoly is: (A) Product Differentiation (B) Barriers to entry (C) Number of buyers (D) Price discrimination 46. Categorisation of market into different forms depends upon (A) Direction of competition (B) Degree of competition (C) Number of firms (D) Both (B) and (C) 47. There is cut-throat competition and a high degree of interdependence between the firms under: (A) Monopolistic competition (B) Non-collusive oligopoly (C) Collusive oligopoly (D) Perfect-competition 48. If there is perfect knowledge among buyers and sellers, which market form is it? (A) Monopoly (B) Oligopoly (© Perfect competition (D) None of these 49. The firm and the industry are one and the same in: (A) Monopolistic competition (B) Monopoly (©) Oligopoly (D) Perfect competition 50. A firm has no control over the price, which form of market structure is it? (A) Monopolistic competition (B) Monopoly (C) Oligopoly (D) Perfect competition 51. In which type of oligopoly, there are some identical products? (A) Pure oligopoly (B) Collusive oligopoly (C) Differentiated oligopoly (D) Non-collusive oligopoly $2. Price discrimination is the feature of : (A) Oligopoly (B) Monopolistic competition (C) Perfect competition (D) Monopoly 53. Product differentiation is a characteristic of which market form? (A) Monopolistic competition (B) Oligopoly (C) Monopoly (D) Perfect competition 54. If a firm charges different prices from different buyers for the same good then it is known as (A) Price control (B) Price discrimination (C) Extension of price (D) Contraction of price 55. When there are only two producers of a good then it will be: (A) Monopoly (B) Oligopoly (C) Duopoly (D) None of these 56. Competition among buyers and sellers is an essential condition for the (A) Existence of market (B) Formation of market (C) Capitalisation of market (D) Owning of market 57. For the existence of market, there must be a commodity which will be bought and sold by (A) Buyers (B) Sellers (C) Producers (D) All of these 58, When no individual seller is in position to influence the prevailing price of the commodity, the market is called (A) Monopoly (B) Oligopoly (C) Monopolistic market (D) Pertect market 59, Which is a feature of monopoly? Gove (A) Price discrimination (18) No close substitute (C) Single seller (D) All of these Gal TEE Broome 10 Qucton Bark with MFP for Fst Semester Examination F60. In which market, products can be differentiated on the basis of size, colour, shape, ete. (A) Monopoly (B) Monopolistic competition (C) Oligopoly (D) Perfect competition 61. Which market firm has the least number of sellers? (A) Monopoly (B) Oligopoly (C) Duopoly (D) Monopolistic competition 62, Which market has characteristics of both monopoly and perfect competition? (A) Oligopoly (B) Monopolistic competition (C) Duopoly (D) Only monopoly 63. Which is not the characteristics of perfectly competitive market? (A) Free entry and exit (B) Homogencous products (C) Single seller (D) Perfect knowledge 64. Which is not the feature of monopoly? (A) Single seller (B) Restriction of entry of new firms (©) No close substitute (D) Homogeneous products 68. There is imperfect knowledge of buyers and sellers under: (A) Monopoly (B) Duopoly (C) Monopolistic competition (D) Perfect competition 66. Under which market structure, sellers cannot influence the price as its share in the total market supply is negligible. (A) Monopoly (B) Oligopoly (C) Duopoly (D) Perfect competition 67. In oligopoly there are sellers producing a commodity. (A) Few large sellers (B) Single seller (©) Very large sellers (D) Large sellers ‘68. In the context of monopolistic competition, which one of the following statements is correct? (A) Firm has full control on price (B) Perfect knowledge (C) Freedom of entry and exit (D) Selling costs do not exist 69. Which of the following industries is most likely to be monopolistically competitive? (A) Automobile industry (B) Car repair (©) Steel industry (D) Electrical generating 70. Which of the following is a differentiated product sold in the market? (A) A hamburger (B) A shirt (©) An automobile (D) Alll of the above 71. There are no other costs other than production costs. Which form is it? (A) Perfect competition (B) Oligopoly (C) Monopoly (D) None of these 72, Which of the following is not the feature of a perfectly competitive market? (A) Each firm has negligible share in market supply (B) Each buyer has negligible share in market demand (C) The firms are interdependent (D) The firms are free to leave the market 73. A firm in a perfectly competitive market can influence market price (A) By lowering output (B) By raising taxes (C) By raising output (D) Can't influence price Fy Goval's ICSE Economics-10 Question Bank with MTP for First Semester Examination74. A market isa physical form, like a where the sellers and buyers can meet face to (A) Retail outlet (B) Wholesale outlet (C) Commodity outlet (D) Price outlet 78, When a producer charges different prices trom different customers it is called (A) Price competition (B) Price discrimination (C) Non-price competition (D) None of these 76, Entry of new firms under monopoly (A) Possible only in the tong run (C) Restricted all the times (B) Possible only in short run (D) None of the above 77. Which of the following best describes an oligopoly? (A) Many monopolistically competitive firms (B) A few firms sharing monopoly power (C) A former monopoly that has been broken up by the government (D) A government granted franchise or monopoly 78. Price discrimination is not pos (A) Perfect competition (C) Oligopoly ble in case of; (B) Monopoly (S) Monopolistic competition 79, Product differentiation is a feature of (A) Monopoly ~ (B) Oligopoly (C) Perfect competition (D) Monopolistic competition 80. In the short run, a firm in the monopolistic competition may: (A) Eam normal profit (B) Ear supernormal profit (C) Incur losses (D) All of these 81. In the long run, all firms under monopolistic competition: (A) Eam supernormal profits (B) Ear normal profits (C) Incur losses (D) None of the above 82. Under monopoly, the selling cost is incurred for: (A) Promoting sale of the product (B) Influencing consumers for not buying the products (C) Informative purposes (D) None of these 83. “Interdependence of firms” is a feature of which market form? (A) Oligopoly (B) Monopolistic competition (C) Monopoly (D) Perfect competition 84, Which of the following prevails in perfectly competitive market? (A) Buyers and sellers are price taker (B) Buyers and sellers are based on social bi (C) Buyers and sellers are price maker (D) Buyers and sellers are ell ve 85. Which of the following feature represents “Perfectly competitive market”? (A) Large number of buyers and sellers (B) Heterogeneous product (C) High transportation cost (D) Perfect knowledge of the market Goval’s ICSE Economics-10 Question Bank with MIP for First Semester Examination86. In a situation of there is no competitive behaviour of the producers to increase their share in the market (A) Perfect competition (B) Monopolistic competition (C) Monopoly (D) Oligopoly 87. In monopoly market situation: (A) Firm and industry are the same (B) Firm and industry are different (C) Buyers and sellers are the same (D) None of these 88. Which of the following is not the characteristic of a monopoly? (A) Price maker (B) Single firm (C) Advertising product (D) Unique product 89. In which of the following market structure, the firm can bring any amount of quantity and can sell at the same price? (A) Imperfect market (B) Perfect market (C) Monopoly (D) Oligopoly 90. Which form of market structure is characterised by interdependence in decision-making as between the different competing firms? (A) Perfect competition (B) Oligopoly (C) Monopoly (D) None of these 91. In the real world, which type of market structure dominates? (A) Monopolistic competition (B) Perfect competition (C) Monopoly (D) Oligopoly 92. When a firm itself determines the price of the product then it is known as the (A) Price maker (B) Price taker (©) Price influencer (D) None of these 93. Under perfect competition goods are sold at (A) Different prices (B) Uniform price (C) Industry price (D) Market price 94. Cost incurred on is called selling cost. (A) Packing of goods (B) Transportation of goods (C) Production of goods (D) Advertisements 98. Which one of following statement is correct in monopolistic competition? (A) Freedom of entry and exit of new firms (B) Firm has full control over price (C) Selling costs do not exist (D) All of these 96. What is the implication of very large number of firms in a perf (A) Firm becomes price maker (B) Entry of new firm becomes difficult (C) No single seller on its own can influence price (D) None of these tly competitive market? 97. Why is there price rigidity in oligopoly market? (A) Difficult entry of a new firm (B) No firm changes its price for fear of retaliation by other firms (C) Selling cost (D) None of these 0 Goyal TESE Bconomies-T0 Question Bank wth MIP for Fost Somes” Evanson98. Which of the following is the most efficient form of market? (A) Perfect competition (B) Monopoly (C) Oligopoly (1D) Monopolistic competition 99, Markets are categorised into different forms on the basis of (A) Number of firms (B) Degree of competition (C) Nature of the product (D) All of these 100. In India conditions of can be found in public utility services such as telephone, electricity and so on. (A) Perfect competition (B) Monopolistic competition (©) Monopoly (D) Oligopoly 101. Under which conditions, market share has no influence on prices? (A) Monopoly (B) Oligopoly (C) Perfect competition (D) Monopolistic competition 102. Firms in typically try to differentiate their products in order to achieve and to capture market returns. (A) Monopoly. (B) Oligopoly (C) Monopolistic competition (D) Perfect competition 103. All of the following are examples of product differentiation in monopolistic competition except (A) New and improved packaging (B) Lower price (C) Acceptance of more credit cards (D) Attractive location of the store 104. When oil producing countries of the middle cast meet to set prices and output levels, it is an example of: (A) Monopoly (B) Collusive oligopoly (C) Competitive oligopoly (D) Profit sh 105. When will the market size be large? (A) The number of sellers is large (B) Sale and purchase of commodity is large (C) Degree of competition (D) None of these 106. Very high degree of competition and interdependence between the firms is found under: (A) Monopolistic competition (B) Non-collusive oligopoly (C) Collusive oligopoly (D) Perfect competition 107. Which of these is the reason for firms earning normal profit in the long run? (A) Free entry and exit (B) Only free entry (C) Only free exit (D) None of these 108, For perfect competition to exist there must be: (A) Many buyers and sellers (B) A standard product (C) Perfect information (D) All of the above 109, What is the effect of free entry and exit of new firms in the long run to the level of profit under perfect compet q (8) Abnormal profit (C) Normal profit (D) No profit (A) High pre 110, What are the extreme forms of markets classified on the basis of degre (A) Perfectly competitive and monopoly market (8) Monopolistic competition and monopoly market (C) Oligopoly and monopoly market (D) Monopoly and duopoly market of competition? Goyal’ TES. Economics 1 Question Bank with MTV for First Semester Exumination 7111, Which of the following quality of buyers and sellers leads to uniform price of the product? (A) Perfect knowledge (B) Imperfect knowledge (C) Well organised (D) Healthy environment 112. When is a market formed for the purchase or sale of good? (A) Transactions are well defined (B) Commodities are ready for sale (C) Consumers are ready to buy (D) All of the above 113. Which type of competition we can find in the ‘Super Market"? (A) Perfect competition (B) Monopolistic competition (C) Monopoly, (D) Oligopoly 114, Markets of scooters, motor-bikes and reffigerators are cxamples of (A) Pure oligopoly (B) Differentiated oligopoly (C) Collusive oligopoly (D) Non-collusive oligopoly 11S. In which form of market “No close substitutes” is a distinguishing feature? (A) Monopolistic competition (B) Oligopoly (©) Monopoly (D) Perfect competition 116. In which type of market goods are not sold at a uniform price? (A) Monopoly (B) Oligopoly (C) Monopolistic competition (D) All of these 117, In case of monopolistic competition, how much selling costs are incurred? (A) Zero (B) High (© Less (D) Partial 118. The main distinguishing feature in oligopoly market is (A) Interdependence between firms (B) Independence of firms (C) Complete dependence of firms (D) None of these 119. Which of the following is a feature when monopoly, monopolistic competition and oligopoly are not similar to each other? (A) Number of sellers (B) Selling cost (C) Price determination (D) All of these 120. Which feature is not true in oligopoly form of market? (A) Non-price competition (B) Small number of firms (C) Price determination (D) Perfect knowledge among buyers 121. Under duopoly, there are only producers in the market? (A) Two (B) Three (C) Four (D) Five 122. Under perfect competition, all sellers sell completely __ goods. (A) Heterogeneous (B) Normal (C) Large number (D) Homogeneous 123. Identify the type of market form in which few large firms collectively decide the level of output and prices, and still retain their individual identity. (A) Monopoly (B) Perfect competition (C) Monopolistic competition (D) Oligopoly 124, Which of the following types of market structure is an exact opposite of pertect competition? (A) Monopolistic competition (B) Oligopoly (C) Duopoly (D) Monopoly 2 Goyal’s ICSE Economics-10 Question Bank with MTP for First Semester Examination125, What is the effect on price when a perfectly competitive firm tries to sell more? (A) Positive (B) Negative (©) Zero (D) Remains constant 126, Which form of market product is not differentiated by trade mark, brand name, size, ete? (A) Monopoly (B) Perfect competition (C) Duopoly (D) Monopolistic competition 127. Under which market form, firms might decide to collude together and not to compete with each other? (A) Collusive oligopoly (B) Non-collusive oligopoly (C) Both (A) and (B) (D) None of these 128, Under the firms behave independently. (A) Monopoly (B) Collusive oligopoly (C) Non-collusive oligopoly (D) None of these 129. Selling costs are incurred for informative purposes under (A) Monopoly (B) Duopoly (C) Oligopoly (D) Monopolistic competition 130. This market form shares features of both perfect competition and monopoly. (A) Monopolistic competition (B) Duopoly (C) Oligopoly (D) Monopoly 131, For the existence of market, there must be a__ which will be bought and sold by buyers and sellers. (A) Commodity (B) Community (C) Competition (D) Co-operation 132. Without _ different prices may be charged for the same commodity. (A) Commodity (B) Buyers (C) Sellers (D) Competition 133. The goods which can be easily used for each other and are available at nearly the same price are called (A) Close substitutes (B) Complementary goods (C) Competitive goods (D) Combined goods 134. Under monopoly, more of the commodity can be sold only by (A) No change in price (B) Reducing the price (C) Increasing the price (D) All of these 135. Under monopoly situation, the firm faces - (A) Demand constraint (B) Supply constraint (C) Price constraint (D) Output constraint 136. Monopolist generally sets a high price for his product and exploits (A) Producers (8) Consumers (C) Sellers (D) All of these 137. The strong barriers that prevent new firms to enter the industry under monopoly are (A) Patent rights (B) Government license (C) Economies of scale (D) All of these 138, Monopolistic competition is also known as (A) Perfect competition (B) Imperfect competition (C) Monopoly (D) Oligopoly Goyal’s ICSE Econamics-10 Question Bank with MEP for First Semester Examination 3139. The concept of imperfect competition is wider than the concept of monopolistic competition. It includes (A) Duopoly (B) Oligopoly (C) Monopolistie competition (D) All of these 140. In monopolistic competition, the individual action regarding change in price has no effect on the (A) Market price (B) Industry price (C) Commodity price (D) Cost price 141. In which type of market individual firms do not bother about the reactions of its rival firms? (A) Monopoly (B) Oligopoly (C) Monopolistic competition (D) Perfect competition 142. The essence of ___is to create an image in the minds of the buyers that the product sold by one seller is different to the product sold by another seller. (A) Price discrimination (B) Product differentiation (C) Package differentiation (D) All of these 143. Through advertisements, firms can inform buyers about the (A) Features of their products (B) Quality of their products (C) Shape of their products (D) All of these 144, What is the other name for non-collusive oligopoly? (A) Differentiated oligopoly (B) Competitive oligopoly (C) Pure oligopoly (D) Collusive oligopoly 14S, Under which type of competition, huge amount of money is spent on advertisement? (A) Monopoly (B) Oligopoly (C) Perfect competition (D) Monopolistic competition 146. Under perfect competition, no measures are taken to control the demand or supply of the product by (A) Manufacturers (B) Consumers (C) Government (D) All of these 147. In a perfectly competitive market, there are no other costs such as (A) Advertisement cost (B) Transport cost (C) Storage cost (D) All of these 148. When there is no restriction on the movement of goods and factors of production, it is called (A) Free movement (B) Perfect mobility (C) Imperfect mobility (D) Restricted mobility 149. Market spreads over an area which may be depending on the spread of buyers and sellers (A) Very large (B) Large (C) Small (D) All of these 150. In a market condition, buyers and sellers may establish contact through (A) Letters (B) Telephone (C) E-mail (D) Any of these M Goval’s ICSE Economics-10 Question Bank with MIP for First Semester ExaminationBanking in India - Money LCN Lad Prior to the introduction (invention) of money, trade was carried out by the system of b ‘© Under the barter system, goods were exchanged for other pods The economic system based upon barter is known as barter economy or C-C economy wh stands for commodity This system wa Difficulties of Barter System were :Lack of double coincidence of wants , lack of com of value, lack of divisibility, problem of storing wealth, Lack of standard of deferred pa # The evolution of money has passed through various stages, in accordance with time, p circumstane in existence in the initial phase of human civilization non measure yments, ¢ and Economists have identified five such stages in the evolution of money. These are: (a) Animal money eg. cow, sheep (>) Commodity money e.g., bows, arrow: (c) Metallic money eg. gold, silver, copper (d) Paper money and (e) Bank money Money may be anything, chosen by common cons It is accepted in payment for goods and services and in settlement of debts Features of Money: Anything which is used as money should have the following features (a) Money should have general acceptability. (b) Money should be easily and economically trans (c) It should possess the quality of durability. (d) All units of money should be similar in all respe (e) It should be capable of division () It should be easily recognised. Money performs the many important functions. Primary Functions are the basic functions of money, Medium of exchange and measure of value are the primary or basic functions of money Medium of exchange is the most important function of money. Money is generally accepted as the medium of exchange. All purchases or sales are made through money. The second fundamental function of money is that it acts as a common measure of valu animal skin, shells, precious stones, ivory, tiger jaws nt as a medium of exchange. to another. orted from one pl nd widely ee Money serves as a unit of measurement in terms of which the values of all goods and servi measured and expressed, Secondary Functions are those functions of n Standard of deferred payments, store of value, transfer of valu eS are ney which are derived from the primary functions, are the secondary functions of money. Deferred payments refer to those payments which are to be made in future Store of value means store of wealth for use in future i.c., shifting of purchasing power from the Present to future. Money is not perishable and its storage costs are also considerably lower Goyal TESE Economics-10- Question Bank with MTP for Fir Semester Beamivation es3 + Which of the following is not a problem of barter system of exchange? (A) Store of value (B) Double coincidence of wants (B) Unit of account (D) Unemployment + Which one is included in the primary function of money? (A) Medium of exchange (B) Store of value (B) Measure of value (D) Both (A) and (C) Which of the following is not a function of money? (A) Medium of exchange (B) Price stability (B) Store of value (D) Unit of account |. Which property does paper money not possess? (A) Acceptability (B) Divisibility (C) Durability (D) Portability . Anything used as a money must be: (A) Stable in value (B) Legal tender (B) Generally acceptable (D) All of these 6. Value of money and supply of money are related: (A) Inversely (B) Directly (C) Government law (D) Not related 7. For which function, money is accepted as unit of account? (A) Measure of value (B) Medium of exchange (C) Standard of deferred payments (D) Unemployment 8. Which of the following refers to general acceptability? (A) Bank draft (B) Bill of exchange (C) Money (D) None of these 9. Which of the following solves the problem of “Double coincidence of wants”? (A) Goods (B) Money (©) Banks (D) All of these 10. The money that is legally accepted by everyone in the economy is called: (A) Legal tender money (B) Plastic money (C) Commodity money (D) Credit money 11. Which of the following is not a part of Legal Tender Money? (A) Limited legal tender money (B) Unlimited legal tender money (C) Optional money (D) None of these 12, Which function allows the payment to be delayed till future date? (A) Medium of exchange (B) Measure of value (C) Store of value (D) Standard of deferred payments 13, “Double coincidence of wants is an essential feature.” Which system is this? (A) Barter system (B) Global economy (C) Money economy (D) None of these 14, A saving account in a bank represents the function of money as: (A) A measure of value (B) A standard of deterred payments (C) Store of value (D) A medium of exchange 15, A student records her income and spending for past month, she uses the function of money in terms of (A) Medium of exchange (B) Standard of deferred payments (C) Store of value (D) Unit of account 16, Which of the following is termed as “Legal Tender Mon (A) Demand deposits (B) Curreney notes (C) Time deposits (D) Inter-bank deposits M fo Gaya’ ICSE Feomomics 10 Question Bank wih17. IF you have 2 metres clothes and you want wheat against it, then how much wheat you should |. Which drawback of barter exchange is highlighted? (A) Lack of measure of value (B) Lack of store of value (C) Lack of medium of exehange (D) None of these 18, Which of the following is called optional money? (A) Legal tender money (B) Non-legal tender money (C) Limited legal tender (D) Unlimited legal tender 19, Limited legal tender money stands for the component of money which (A) is issued in a limited amount (B) is legal tender for payment upto a certain maximum amount (C) is legal tender in specific areas (D) is to be used in specific transactions 20, “Bad money drives good money out of circulation” with whose name is this law associated? (A) IM. Key (B) LE. Mises (C) Thomas Gresham (D) R.G. Hawtrey 21. Supply of money refers to quantity of money: (A) During the year only (B) During any period of time (C) As on 31st March only (D) As on any point of time 22. Money supply is stock of money held: (A) Ona specific day (B) During a week (C) During a month (D) During a year 23, “Standard of deferred payments’ function of money has facilitated the creation of: (A) Production units (B) Banks (C) Government (D) Welfare organisations 24, Anything widely accepted in making payment implies which function of money? (A) Medium of exchange (B) Unit of account (C) Store of value (D) Standard of deferred payments 25. If there is no money, there will be: (A) No trade (B) No market (C) No government (D) No financial institutions 26. Which of the following functions of money is essential most for anything to be treated as money? (A) Store of value (B) Unit of account (C) Medium of exchange (D) Standard of deferred payments 27. What is the correct sequence of following developments? |. Barter system 2. Plastic money 3. Paper money 4. Gold standard 5. Credit money (A) 1, 4,3, 5, 2 (B) 1, 3, 5,4,2 (C) 1, 2, 4s (D) 83,421 28. Which money is generally accepted, but legally, one is not bound to accept it? (A) Limited legal tender (B) Unlimited legal tender (C) Non-legal tender money (D) Liquid form of money 29. Why is currency accepted as a medium of exchange? (A) The currency is authorised by the government of the country (B) It is liked by the people who use it (C) The use of currency has its origin in ancient times. (D) The currency is authorised by the World Bank Question Bank with MIP for Fist Semester Examination fT30. Modem forms of money include currencies which are __ and (A) Cheques, credit (B) Paper notes, coins (C) Demand draft, credit (D) Coins, cheques 31, What eliminates the need for double coincidence of wants? (A) Credit (B) Debit (C) Money (D) Barter system 32, Which of the following is not a hurdle to the barter system? (A) Scope of speculation (B) Indivisibility (©) Complex calculations (D) Problem of reciprocal demand 33. Money acts as the (A) Medium of exchange (B) Store of value (C) Measure of value (D) All of these 34. Which of the following is not a problem of “commodity money” when it acts as a medium of exchange? (A) Indivisibitity (B) Expansion of trade (C) Difficult to store (D) Improper standardisation 35, Direct exchange of goods against goods is called: (A) Charter (B) Money (C) Barter (D) None of these 36. Which of the following is not secondary function of money? (A) Standard of deferred payments (B) Store of value (C) Transfer of value (D) Basis of credit creation 37. Money is the most liquid form of assets because: (A) It is not widely used by everyone. (B) It includes shares and equities (C) It has certain functions. (D) It acts as a medium of exchange. 38. Which of the following refers to money in terms of measurement of value of all goods and services? (A) Unit of account (B) Store of value (©) Medium of exchange (D) Standard of deferred payments 39. Which of the function is also called asset function of money? (A) Store of value (B) Measure of value (C) Unit of value (D) Deferred payments 40. Which of the following system is referred to goods being exchanged for goods in olden days? (A) Barter system (B) Money system (C) Functional system (D) Primary system 41. What do we call to value of money? (A) Gold purchased by money (B) General purchasing power of money (C) Importance of money (D) Demand for money 42, Which is not a characteristic of good money? (A) Liquidity (B) General acceptability (©) Attractive design (D) None of these 43, Which is the most primitive form of money? (A) Metallic money (B) Commodity money (C) Paper money (D) Deposit money 8 Goyal’s ICSE Economics-10 Question Bank with MIP for First Semester Examination44. Which is not the fundamental function of money? (A) Medium of exchange (B) Measure of value (C) Store of value (D) None of these 45. According to Asthaveda, Go-Dhan was accepted as a form of money. It refers to (A) Metallic money (B) Animal money (C) Commodity money (D) Bank money 46. While purchasing a car or a house, __in terms of cheques or bank draft is used (A) Paper money (B) Metallic money (C) Commodity money (D) Bank money 47. In which form of money there is no element of risk involved in its movement? (A) Bank money (B) Commodity money (C) Paper money (D) Animal money 48. Which of the following characteristic of money does not hold? (A) General acceptability (B) Liquidity (C) Barter system (D) None of these 49. Medium of exchange and measure of value are functions of money. (A) Primary (B) Secondary (©) Contingent (D) Value 50. Standard of deferred payment is function of money. (A) Primary (B) Secondary (©) Contingent (D) Maximum $1. Money should be stable in value. Which feature is it? (A) Portability (B) Homogeneity (C) Durability (D) Stability 52. Which feature is it that money should be easily recognised? (A) Durability (B) Cognisability (C) Divisibility (D) Portability 53. Consider the following: 1. Store of value 2. Measure of value 3. Transfer of value 4. Standard of deferred payments Which of the above are the secondary functions of money? (A) 1, 2 and 3 (B) 1, 3 and 4 (©) 2,3 and 4 (D) All of these $4, Bank money is secure because: (A) It can be transported easily (B) No element of risk (C) Cheques can be written for exact amount (D) All of these ‘5S. Barter is BEST described as the (A) Purchase of goods and services using cheques (B) Exchange of goods and services using notes and coins (C) Process of exchange involving the use of money (D) Exchange of goods and services without the use of money 56. Earlier precious stones were form of money, (A) Bank money (B) Commodity money (C) Paper money (D) Animal money $7. Commodity money was changed into metallic money because (A) Goods can be stored for a longer period (B) Goods are not divisible (C) Goods lack uniformity (D) All of these Goyal TOSE Beonomics 0 Question Bank with BITE for First Semester Examinaion =. y58. Which of the following is a modem form of currency? (A) Gold (B) Silver (C) Coins (D) Paper notes 59. Cows and cattle are types of ___ money (A) Commodity (B) Animal (C) Paper (D) Bank 60. Examples of commodity money are (A) Coins (B) Notes (C) Shells (D) All of these 61. Money is matter which (A) is a measure of value (B) is not accepted as a means of exchange (C) does not store wealth (D) All of these 62. Bank money refers to: (A) Curreney notes (B) Fixed deposits (C) Lending by banks (D) Chequable deposits 63. Earlier Sheep was formof money. (A) Bank money (B) Commodity money (C) Paper money (D) Animal money 64. “Measure of value’ is a function of money. (A) Primary (B) Secondary (C) Contingent (D) None of these 68. Money acts as a which can be used for future use (A) Measure of value (B) Medium of exchange (C) Deferred payments (D) Store of value 66. The function of money is: (A) Medium of exchange (B) Measure of value (C) Store of value (D) All the above 67. In stage in the evolution of money is commodity money. (A) First (B) Second (©) Third (D) Fourth 68. From nineteenth century onwards, the evolution of money is money (A) Paper (B) Metallic (©) Commodity (D) None of these 69. The modem currency is without any use of its own, then why is it aocepted as a medium of exchange? (A) Because it is convenient, (B) It has digital and manual system. (C) It can be used in foreign exchange (D) It is authorised by the government of the country. 70. What are the necessary conditions of Barter System? (A) Limited Needs (B) Limited Exchange Area (C) Economically Backward Society (D) All the above 71, Barter cannot function well because (A) goods are not always divisible. (B) transaction costs are minimal (C) goods are always standardised, (D) All of these 72. Since money acts as an intermediate in the exchange process, it is called _ (A) Medium of trade (B) Medium of exchange (C) Medium of business (D) Medium of transaction 40 Goval’s ICSE Economics-10 Question Bank with MTP for First Semester Examination73. Which of the following statements explain why a barter system restricts exchange? (A) There must be coincidence of wants (B) Itis difficult to divide certain commodities (C) Commodities used are not homogeneous (D) A rate of exchange must be determined 74. What are the advantages of Bar (A) Simple System (B) More Mutual Co-operation (C) No Economie Disparities (D) All the above 78. Which of the function is NOT a function of money? (A) Indivisibitity (B) Measure of value (C) Store of value (D) Medium of exchange 76. What is not an example of commodity money? (A) Salt (B) Tea (C) Shells (D) Paper 77. Which one is the difficulty of Barter System? (A) Lack of Double Coincidence (B) Difficulty of Division of Goods (C) Lack of General Acceptable Measure of Value (D) All the above 78. Which is the correct order of money evolution? (A) Commodity Money, Paper Money, Metal Money (B) Commodity Money, Metal Money, Paper Money, Credit Money (C) Credit Money, Metal Money, Paper Money (D) None of the above 79. Earlier rice was form of money. (A) Bank money (B) Commodity money (C) Paper money (D) Animal money 80. Money serves as a standard of deferred payment when: (A) itis used to buy something now and make payments later on. (B) it is exchanged for goods and services. (C) it has intrinsic value. (D) it is no longer divisible. 81. What is the double coincidence of wants? (A) Both parties have to agree to sell and buy each other's commodities (B) Exchanging commodity for commodity (C) Credit on commodity (D) Loan on commodity till sold further 82. What were the earliest form of objects used as money in India? (A) Grains and cattle (B) Coins (C) Jewels (D) Land 83. What came after grains and cattle as a medium of exchange in India? (A) Currency notes (B) Metallic coins (C) Barter system (D) Value for land 84. Money serves as a unit of account. This means that (A) money is a common measure of value (B) money is a means of calculating relative prices of goods and services, (C) money is the valu (D) all of these exchange of all goods and services Goals IESE Feonomics 10 Question Bank with MIP for First Semevier Examination a85. Which is not the function of money? (A) Make demand and supply equal (C) Medium of exchange 86. Barter system means (A) Purchase of commodity with money (B) Sale of commodity with money (B) Store of value (D) Measure of value (C) Purchase and sale of commodity with commodity (D) None of the above 87. Quality of good money (A) Acceptability (B) Durability 88. Legal money is called so because (A) The buyer must pay in that money (C) Sellers do not accept any other money 89. Currency includes: (A) Metallic coins (©) Credit money 90. The most important feature of money is (A) General acceptability (C) Store of value 91. Value of money means (A) Gold purchased by money (©) Importance of money 92. Choose the most accurate definition of “money”. (C) Portability (D) Alll these (B) It can be converted into gold (D) It is official medium of exchange (B) Notes (D) Both (A) and (B) (B) Convertibility into gold (D) Medium of exchange (B) General Purchasing power of money (D) Demand for money (A) Money is anything generally accepted in payment for goods or services or in the repayment of debts. (B) Money is anything recognised in trading and transaction for goods. (C) Money is legal currency that is released by banks to satisfy the financial needs of the people. (D) All of these 93. Currency notes and coins are (A) Legal Tender Money (©) Commodity Money (B) Animal Money (D) All of these 94, Something which is freely used and generally accepted as: a medium of exchange and as a unit of account is called: (A) Money (B) Capital (©) Assets (D) Wealth a - Goyal’s ICSE Economics-10 Question Bank with MTP for First Semester ExaminationSPECIMEN QUESTION PAPER (Issued by CISCE) IT SE Maximum Marks » 40 Time allowed » One hour (inclusive of reading time) ALL QUESTIONS ARE COMPULSORY The marks intended for questions are given in brackets [ ] Select the correct option for each of the following questions. Question 1. The demand for goods which can be put to several uses is known as 0) 1. Competitive 2. Autonomous 3. Composite 4, Indirect Question 2. The productive capacity of a worker is called as fy 1. Efficiency of labour 2. Mobility of Labour 3. Supply of labour 4, Inefficiency of labour Question 3. Which of the following are considered as factors of production? uy 1. Land 2. Labour 3. Capital 4. Alll of them Question 4 When production of goods is divided into several processes it is known as division of labour. a) 1. Product based 2. Process based 3. Territorial based 4. Simple based Question 5 Efficiency of labour is low in India due to - i 1. Congenial environment at work place 2. High wages 3. Migratory nature of labourers 4, None of the above Question 6 The demand for labour is uy 1. Direct 2. Derived 3. Free Question 7 If the prices of factors of production increases, then the supply will uy 1. Decrease 2. Inen 3. Zero 4. None of the above Question 8 In economics demand and price have relationship. uy ____ 1 Zero 2. Positive A Inverse Goyals Feonomics-10 Question Bank with MIP for Fist Se aQuestion 9 1" Capital cams as factor income. a Pairs 1. Wage 2. Rent 3. Profi Qeesion of labour. a There are more possibilities of invention under ___— Division 1. Supply 2 3. Mobility 4, None of the above Question 11 nl Car and petrol are examples of demand. 1. Complementary 2, Competitive 3. Substitute 4, Composite Question 12 possess general acceptability 4 a 1. Cheque 2. Money: 3. Bank draft 4. Bon Question 13 Under monopoly market a firm/seller has | a 1. Partial control over price 2. Full control over price 3. No control over price 4, None of these Question 14 Homogenous products are sold under uy 1. Oligopoly market 2. Monopoly market 3. Perfect competition 4, Monopolistic competition Question 15 These are five stages of evolution of money. Which of the following orders is correct? [1] 1. Bank, paper, metallic, commodity, animal. 2. Paper, metallic, Bank, commodity, animal. 3. Animal, commodity, metallic, paper, bank. 4, Animal, commodity, metallic, bank, paper. Question 16 Simultaneous fulfilments of mutual wants by buyers and sellers are (1 1. Common measure of value 2. Double coincidence of wants. 3. Divisibility of goods 4. Standard of deferred payment Question 17 There are a large number of buyers and sellers under a market iT 1. Monopoly market 2. Perfect market 3. Oligopoly market 4. All of the above Question 18 Cotton and cotton seeds are examples of _ supply. (1) 1. Jointly produced goods 2. Inferior goods 3. Composite goods 4. Inferior goods Goyal’s ICSE Economics-10 Question Bank with MTP for First Semester ExaminationQuestion 19 cars income in the form of profit as a factor of production i 1. Land 2. Labour 3. Capital 4. Entrepreneur Question 20 Capital as a factor of production is in nature. uy 1, Durable 2. Perishable 3. Immobile 4, Limited Question 21 Flectricity is an example of _ demand (1) 1. Complementary demand 2. Joint demand 3. Composite demand 4, Inferior demand Question 22 payments are referred to those payments which are to be done in future. [1] 1. Deferred payments 2. Stable payments 3. Derived payments 4. Indirect payments Question 23 Oligopoly is a market situation in which there are only a sellers in the industry ty 1. Few 2. Large 3. Futuristic 4. Maximum, Question 24 Land is a factor of production. a 1. Mobil 2. Immobile 3. Temporary 4. Active Question 25 Which of these following is not a characteristic of land? i 1. Land is a direct demand 2. Land varies in fertility 3. Land is limited in supply 4, Land has many uses Question 26 Under system it is difficult to store value. u 1. Money exchange 2. Price exchange 3. Store exchange 4. Barter exchange Question 27 Tea and Coffee are examples of i 1. Derived goods 2. Substitute goods 3. Inferior goods. 4. All of the above Question 28 If the cost of production is less then the supply will 7 i) 1. Decrease 2. Increase 3. Be constant 4. Be Negative Question 29 Lack of divisibility is a problem of system of exchange. (1) 1. Trade 2. Barter 3. Money 4. Capital Goyal’ ICSE Feonomics-10 Question Bank with MTP for First Semester ExaminationQuestion 30 Labourers have 1. More 2. Less Question 31 Indian farmer is an example of 1. Process based 2. Monopoly based Question 32 When income increases the demand for 1. Inferior goods 2. Giffen goods Question 33 The producers prefer to supply more when the prices are 1. Low 2. High Question 34 Labour is factor of production, 1. Passive 2. Active Question 35 Land is fixed in two senses 1. Supply and Mobility 3. Man-made and Perishable Question 36 Detergent powder and detergent cake are examples of 1. Substitute goods 3. Jointly demanded goods Question 37 When the government gives tax 1. Imposition 2. Restriction Question 38 Demand for goods will increase during bargaining power. 3. Unlimited 4, Limited type of labour. 3. Product based types of good will increase. 3. Normal goods 3. Negative 4, Positive 3. Limited 4. Direct 2. Demand and Immobility 4. All of the above 2. Complementary goods 4, Inferior goods then the supply of goods will increase. 3. Concession 4. Perfection _ period. 3. Depression 4, Stagnation 3. Specialization 1. Inflation/Boom 2. Deflation Question 39 of labour is related to division of labour 1. Supply 2. Demand Question 40 A shirt costing €300 is _ 1. Measure of value 3. Transfer of value function of money. 2. Store of value 4, Cognizable value 4, Coarse goods ay 4, Complex based ny i} ty fl) i tt) u) 4. Universalization tt) % Goyal’s ICSE Economics-10 Question Bank with MTP for First Semester ExaminationMODEL TEST PAPER 1 ELE ERI ES Maximum Marks. 40 Time allowed : One hour (inclusive of reading time) ALL QUESTIONS ARE COMPULSORY The marks intended for questions are given in brackets [ | Select the correct option for each of the following questions. 1, Demand for the commodity for various uses is called a (A) Joint demand (B) Direct demand (C) Composite demand (D) Cross demand 2. Labourers are rewarded suitably for their work in the form of a) (A) Interest (B) Rent (C) Wages (D) Profit 3. Factors of production help in the process of ro (A) Consumption (B) Exchange (C) Distribution (D) Production 4. Land and labour are the factors of production. a (A) Primary (B) Secondary (C) Tertiary (D) None of these $. Physical and mental work are done by to carn income. a (A) Land (B) Labour (C) Capital (D) Entrepreneur 6. Effect of change in consumer’s real income on his demand is known as a (A) Income effect (B) Substitution effect (C) Supply effect (D) Market effect 7. Functional relationship between the supply of a commodity and its various determinants is termed as 0) (A) Supply function (B) Demand function (C) Individual supply (D) Market supply 8. The demand falls with a rise in income levels of households in case of i (A) Inferior goods (B) Substitute goods (C) Luxuries (D) Necessities 9. Capital is a produced means of a (A) Production (B) Consumption (C) Transaction (D) Distribution 10. Which of the following factor of production is the original source of all wealth? ro (A) Land (B) Labour (C) Capital (D) Entrepreneur i. 12. Various quantities of commodities or services that are purchased at a given time and at given Prices show a) (A) Income demand (B) Price demand (C) Cross demand (D) Individual demand Which of the following is not a problem of barter system of exchange? a (A) Store of value (B) Double idence of wants (C) Unit of account (D) Unemployment Economics-10 Question Bank with MTP for First Semester Examination 4713. “Toothpaste” is a product of which type of market form? Oo] (A) Monopolistic competition (B) Oligopoly (C) Monopoly (D) Perfect competition 14. “No close substitute” is a distinguish feature of which form of market? it (A) Monopolistic competition (B) Oligopoly (©) Monopoly (D) None of these 18, Which one is not included in the primary function of money? a (A) Medium of exchange (B) Store of value (©) Measure of value (D) All of these 16. Which of the following is not the main feature of money? O) (A) Acceptability (B) Divisibitity (C) Durability (D) Marketability 17. Under perfect competition, each firm is a 0) (A) Price maker (B) Price taker (C) Supply maker (D) Supply taker 18. If cost of sugarcane increases the supply of sugar will 0) (A) Increase (B) Decrease (C) Not change (D) None of these 19, Individuals who are willing to take risks, bring the resources together and develop new products, and start new businesses a (A) Resources (B) Entrepreneurs (C) Services (D) Human resources 20. Capital is a factor of production. u (A) Perishable (B) Fixed (©) Durable (D) Immobile 21. Pepsi and Coco-Cola are goods. ul (A) Complementary _(B) Substitute (©) Joint (D) Inferior 22. Anything used as money must not be: ul (A) Generally acceptable (B) Legal tender (©) Fixed in supply (D) Durable 23, Mining activity is an example of a (A) Perfect competition (B) Monopolistic competition (C) Monopoly (D) Oligopoly 24, In Economics, land as a factor of production also includes ti] (A) Climate (B) Rivers (©) Forests (D) All of these 25, Non-factor inputs are also called 1) (A) Durable goods and services (B) Intermediate goods (C) Primary inputs (D) Costly inputs 26, Moncy should be so that it lasts long, Ww (A) Divisible (B) Durable (C) Attractive (D) All of these 27, Demand for food is an example of demand. if (A) Direct (B) Derived (©) Joint (D) Composite 28. Quantity offered for sale at a particular time and price by the producer is called () (A) Stock (B) Supply (C) Quantity (D) Commodity 29. Which of the following is not a function of mor (i (A) Medium of exchange (B) Price stability (D) Measure of value TCSE Economics with MTP for First Semester Examination30, Factors of production are also known as (1) (A) Inputs (B) Outputs (C) Variables (D) Commodities 31. From the following economic resources, which cannot be converted into commodity? i) (A) Land (B) Labour (C) Capital (D) All of these 32, The demand for normal good __with an increase in income of the consumer. [1] (A) Increases (B) Decreases (C) Remains same (D) Both (A) and (B) 33. The market supply of a commodity is affected by: (1 (A) State of technology (B) Number of firms (C) Government policy (D) All of these 34, Labour cannot be separated from a (A) Labourer (B) Profit (C) Capital (D) None of these 38. Man is helpless in increasing the supply of natural resources such as au (A) Land (B) Labour (©) Capital (D) Enterprises 36. When two or more goods are demanded simultaneously, it is known as fo] (A) Joint demand (B) Direct demand (C) Composite demand (D) Alternate demand 37. The supply of a good refers to a] 38. 39. (A) Stock available for sale (B) Total stock in the warehouse (C) Actual production of the good (D) Quantity of the good offered for sale at a particular price per unit of time Which one is increasing function of price? 0) (A) Demand (B) Utility (©) Supply (D) Consumption What is the advantage of division of labour? a (A) Increase the efficiency of labour (B) Low profits (C) Less national income (D) Rising prices of output |. Which type of money can be transported easily? a (A) Metallic money (B) Commodity money (C) Bank money (D) Animal money Question Bank with MIP for Firsi Semest °