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

Board ICSE
Class  10th (X)
Subject Economics
Topic Semester-2 ICSE Specimen Paper Solved
Syllabus  on bifurcated syllabus (after reduction)
session 2021-22
Question Type Descriptive Type (as prescribe by council)
Total question Total- 6 (Sec-A&B)
Max mark 40
Mode Offline

Warning :- before viewing solution view Question Paper

(Attempt all questions)

Question 1:

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.

(a) Continuous

(b) Sustainable

(c) No

(d) High

Answer :  (d) High

(ii) The debt which yields income to the government is called as:

(a) Gross

(b) Productive

(c) Unproductive

(d) Interna

Answer : 

(iii) Capital expenditure is __________ in nature.

(a) Non-recurring

(b) Recurring

(c) Simple

(d) Complex

Answer : 

(iv) Public Distribution system is a __________ measure of government to protect the consumers.

(a) Administrative

(b) Technical

(c) Collateral

(d) Demonstrative

Answer : 

(v) Under Right to Information any citizen of India may request information from a _________ authority.

(a) Public

(b) Private

(c) Personal

(d) Professional

Answer : 

(vi) Public debt whose principal amount is not refunded by the government is:

(a) Redeemable debt

(b) Irredeemable debt

(c) Social

(d) Public

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

Answer : 

(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.)

Question 2:

(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.

Answer : 

(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.

Question 3:

(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)

Answer : 

(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.

Question 4:

(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.

Answer : 

(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.

Question 5: 

(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.


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