Economics Semester-2 ICSE Specimen Paper Solved Class-10
Economics Semester-2 ICSE Specimen Paper Solved Class-10. Step by step solutions of ICSE Class-10 specimen model sample paper. During solutions of semester-2 Economics specimen paper so that student can achieve their goal in next upcoming exam of council .
Economics Semester-2 ICSE Specimen Paper Solved Class-10
|Topic||Semester-2 ICSE Specimen Paper Solved|
|Syllabus||on bifurcated syllabus (after reduction)|
|Question Type||Descriptive Type (as prescribe by council)|
|Total question||Total- 6 (Sec-A&B)|
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(Attempt all questions)
Choose the correct answers to the questions from the given options. (Do not copy the question, Write the correct answer only.)
(i) Inflation means __________ rise in price.
Answer : (d) High
(ii) The debt which yields income to the government is called as:
(iii) Capital expenditure is __________ in nature.
(iv) Public Distribution system is a __________ measure of government to protect the consumers.
(v) Under Right to Information any citizen of India may request information from a _________ authority.
(vi) Public debt whose principal amount is not refunded by the government is:
(a) Redeemable debt
(b) Irredeemable debt
Answer : (a) Redeemable debt
(vii) Goods and Services Tax (GST) is an example of:
(a) Direct tax
(b) Indirect tax
(c) Income tax
(d) Local tax
Answer : (b) Indirect tax
(viii) Revenue which is derived by the government from Railway fares is:
(a) Commercial revenue
(b) Administrative revenue
(c) Social revenue
(d) Welfare revenue
(ix) Overdraft facility is available on:
(a) Saving account
(b) Current account
(c) Posting account
(d) Time deposit
Answer : (b) Current account
(x) Bank having power of note issue in India is:
(a) State Bank of India
(b) Reserve Bank of India
(c) Canara Bank
(d) Federal bank
Answer : (b) Reserve Bank of India
(Attempt any three questions.)
(i) What is the meaning of consumer awareness?
(ii) Define public debt.
(iii) Differentiate between Demand deposit and Fixed deposit (Three points)
(iv) Explain any three duties of a consumer.
(i) Consumer awareness means being conscious of having knowledge about the various consumer production laws, redress mechanism and the consumer rights which include right to protection of health and safety from goods and services that the consumer buy, right to be informed about the quality, price, potency, purity and standard of good, right to choose the best from a variety of others, right to get representation if there is any grievance or suggestion, and right to seek redress against unfair trade practice or unscrupulous exploitation.
(ii) Public debt is the total amount, including total liabilities, borrowed by the government to meet its development budget. It has to be paid from the Consolidated Fund of India. The term is also used to refer to overall liabilities of central and state governments, but the Union government clearly distinguishes its debt liabilities from the states’.
- Interest rate on demand deposits is very low whereas fixed deposits carry a higher interest rate.
- Demand deposits can be withdrawn at any time whereas fixed deposits can be withdrawn only after the expiry of a specific period.
- Demand deposits are chequable, i.e. they can be withdrawn through cheques, whereas fixed deposits are not chequable.
(iv) Five consumer responsibilities include staying informed, reading and following instructions, using products and services properly, speaking out against wrongdoing and lawfully purchasing goods and services.
(i) Give one point of difference between creeping and running inflation.
(ii) Why is central bank called as a ‘lender of last resort’ for a commercial bank?
(iii) Explain any three rights of a consumer.
(iv) Differentiate between revenue and capital expenditure. (Three points)
(i) Creeping inflation is inflation where the price level increases at a very slow rate of 2 to 2.5% per annum. Running inflation is inflation where the price level increases a bit faster and is at the rate of 10% per month.
(ii) The Central Bank provides financial assistance to commercial banks by rediscounting eligible bills of exchange. The Central Bank advances loans to such banks against approved securities. Thus, the Central Bank acts as a ‘lender of the last resort’.
1. Right to choose: The consumers have the right to choose between different brand and models.
2. Right to be heard: The court must hear the consumer’s query.
3. Right to be informed: The consumer hat the right to know about the product he/ she is buying.
(iv) Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.
(i) Define public expenditure.
(ii) What does public finance mean?
(a) Mention two sources of public revenue.
(b) Explain the term Internal debt.
(iv) Explain any three causes of cost push inflation.
(i) Public expenditure is the expenditure incurred by the public authorities to satisfy those common wants which the people in their individual capacity are unable to satisfy efficiently.
(ii) Public finance is the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions. This guide provides an overview of how public finances are managed, what the various components of public finance are, and how to easily understand what all the numbers mean.
(a) Taxes and prices. Taxes are paid compulsorily whereas prices are paid voluntarily by individuals, who enter into contracts with the public authority. Thus, prices are contractual payments.
(b) In public finance, internal debt or domestic debt is the component of the total government debt in a country that is owed to lenders within the country. Internal public debt owed by a government (money a government borrows from its citizens) is part of the country’s national debt.
(iv) Cost-push inflation occurs when the supply of a good or service changes, but the demand for it stays the same. It occurs most often when a monopoly exists, wages increase, natural disasters occur, regulations are introduced, or exchange rates change.
(i) Explain the term progressive tax.
(ii) What does Consumer price index mean?
(a) What is the full form of COPRA?
(b) Mention any two features of COPRA.
(a) Define inflation
(b) What does hyper inflation mean?
(i) A progressive tax is one where the average tax burden increases with income. High-income families pay a disproportionate share of the tax burden, while low- and middle-income taxpayers shoulder a relatively small tax burden.
(ii) The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
(iii) (a) The Consumer Protection Act,1986 (COPRA) was an Act of the Parliament of India enacted to protect the interests of consumers in India.
(i) The Act provides for establishing three-tier consumer dispute redressal machinery at the national, state and district levels.
(ii) It applies to all goods and services
(iv) Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.
(i) Explain the term food basket.
(ii) What are the demerits of indirect tax?
(iii) Explain the different rights of a consumer.
(iv) Why are the consumers exploited by retailers?
(i) In short, the food basket, also called the farmer’s basket, is a customized basket of local agricultural products for daily individual consumption, which is put together by a center of coordination, with crops from a number of local farms.
(ii) The main drawback of an indirect tax is that it is now an equitable tax. It is regressive in nature. It affects the poorer section more than the rich. A commodity tax imposed on foodstuff will affect a poorer family in a much greater degree than a rich family.
(iii) The right to be fully informed about the performance and quality of all goods and services. The right to free choice of goods and services. The right to be heard in all decision-making processes related to consumer interests. The right to seek redressal, whenever consumer rights have been infringed.
- Sale of adulterated goods, i.e. addition of inferior substances to the product being sold.
- Sale of sub-standard goods, i.e. sale of goods which do not confirm to the prescribed quality standards.
- Use of false weights and measures leading to losses.
- Supply of defective goods.
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