ICSE Class 10 Economic Applications by Pavan | Practice Test to Test Your Knowledge
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  3. ICSE Class 10 Economic Applications
ICSE Class 10 Economic Applications

ICSE Class 10 Economic Applications

Detailed mock test covering Economic Environment, Business Organization, and Financial Systems. Includes case studies and practical applications.

2025-07-19
Pavan Pavan
ICSE Class 10 Economics Grade 10

Duration

30 min

Questions

30

Marking

Negative

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Questions Preview

What is the meaning of 'demand' in economics?

A
The quantity of a good or service that consumers are willing and able to buy at different prices
B
The quantity of goods produced by the government
C
The quantity of goods that a seller is willing to sell
D
The total number of goods available in the market

Which of the following is NOT a type of demand?

A
Joint demand
B
Derived demand
C
Elastic demand
D
Composite demand

What is joint demand?

A
When the demand for two goods is interdependent
B
When the demand for a good increases with a rise in the price of another good
C
When the demand for a good is not affected by the price of other goods
D
When the demand for a good is only based on the income of the consumers

Which of the following is an example of derived demand?

A
Demand for raw materials due to the demand for finished products
B
Demand for luxury items
C
Demand for a specific brand of product
D
Demand for daily necessities

What is composite demand?

A
Demand for a good that is used for multiple purposes
B
Demand for a good that is used with another good
C
Demand for goods that are interchangeable
D
Demand for goods produced by a monopoly

What does the law of demand state?

A
As the price of a good increases, the quantity demanded decreases, ceteris paribus
B
As the price of a good decreases, the quantity demanded decreases
C
As the price of a good increases, the quantity supplied increases
D
As income increases, demand decreases

Which of the following is NOT a determinant of demand?

A
Price of the good
B
Income of the consumers
C
Number of sellers
D
Tastes and preferences

Which of the following causes a movement along the demand curve?

A
Change in income
B
Change in the price of the good
C
Change in the number of consumers
D
Change in the taste and preferences

Which of the following causes a shift in the demand curve?

A
Change in price
B
Change in quantity demanded
C
Change in income or taste
D
Change in supply

What is the law of supply?

A
As the price of a good increases, the quantity supplied increases
B
As the price of a good decreases, the quantity supplied decreases
C
As the price of a good increases, the quantity demanded decreases
D
As income increases, supply decreases

Which of the following causes a movement along the supply curve?

A
Change in income
B
Change in the price of the good
C
Change in the number of suppliers
D
Change in technology

Which of the following causes a shift in the supply curve?

A
Change in the price of the good
B
Change in quantity supplied
C
Change in the number of suppliers or technological changes
D
Change in consumer preferences

What is the meaning of 'market demand curve'?

A
The sum of all individual demand curves in the market
B
The demand curve for a specific individual
C
The curve that shows the supply of goods
D
The relationship between price and supply

What is the concept of 'price elasticity of demand'?

A
The responsiveness of quantity demanded to a change in price
B
The responsiveness of supply to a change in price
C
The relationship between price and income
D
The change in demand due to income changes

Which of the following is the formula for calculating price elasticity of demand using the percentage method?

A
Percentage change in price / Percentage change in quantity demanded
B
Percentage change in quantity demanded / Percentage change in price
C
Percentage change in supply / Percentage change in price
D
Percentage change in demand / Percentage change in quantity

What does it mean if the price elasticity of demand is greater than 1?

A
The demand is elastic
B
The demand is inelastic
C
The demand is unitary elastic
D
The demand is perfectly inelastic

Which of the following factors affects the price elasticity of demand?

A
Availability of substitutes
B
Necessity or luxury nature of the good
C
Time period under consideration
D
All of the above

What is the definition of 'elasticity of supply'?

A
The responsiveness of supply to a change in price
B
The responsiveness of demand to a change in price
C
The relationship between supply and demand
D
The relationship between price and quantity supplied

What is the formula for calculating elasticity of supply using the percentage method?

A
Percentage change in supply / Percentage change in price
B
Percentage change in price / Percentage change in supply
C
Percentage change in supply / Percentage change in quantity demanded
D
Percentage change in demand / Percentage change in price

What does it mean if the price elasticity of supply is less than 1?

A
The supply is elastic
B
The supply is inelastic
C
The supply is unitary elastic
D
The supply is perfectly elastic

What is the meaning of 'unitary elasticity of demand'?

A
The percentage change in demand is equal to the percentage change in price
B
The percentage change in demand is greater than the percentage change in price
C
The percentage change in price is greater than the percentage change in demand
D
The demand does not change with a change in price

Which of the following is a reason for low price elasticity of demand?

A
Availability of close substitutes
B
The good is a necessity
C
Short time period
D
The good is a luxury item

What happens when the supply curve shifts to the left?

A
The quantity supplied decreases
B
The quantity supplied increases
C
The price decreases
D
The demand increases

Which of the following statements is true regarding the law of demand?

A
Demand increases when price increases
B
Demand decreases when price decreases
C
Demand remains unchanged with price changes
D
Demand increases when price decreases

What does the term 'elasticity' mean in the context of economics?

A
The responsiveness of demand or supply to a change in price
B
The ability of consumers to pay higher prices
C
The number of substitutes available
D
The ability of producers to increase supply

Which of the following does NOT affect the price elasticity of supply?

A
Time period for adjustment
B
The availability of resources
C
The necessity of the good
D
The ease of production

What is the outcome when the price of a good increases and its demand decreases?

A
The demand curve shifts right
B
The demand curve shifts left
C
The demand curve stays constant
D
The supply curve shifts

Which of the following causes an increase in demand?

A
Increase in the price of substitute goods
B
Decrease in consumer income
C
Decrease in the price of the good
D
Decrease in the number of consumers

Which of the following is an example of an exception to the law of demand?

A
Luxury goods
B
Giffen goods
C
Necessities
D
Substitute goods

What is the meaning of 'inelastic demand'?

A
The quantity demanded changes significantly with a change in price
B
The quantity demanded changes very little with a change in price
C
The quantity demanded remains constant with a change in price
D
The quantity demanded is unaffected by income