ICSE Class 10 Economics by Pavan | Practice Test to Test Your Knowledge
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ICSE Class 10 Economics

ICSE Class 10 Economics

Detailed mock test covering Basic Economic Problems, Banking, and Indian Economy. Includes numerical and theoretical questions.

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 'land' in economics?

A
Only the surface of the earth
B
All natural resources used for production
C
The area of agricultural land
D
Fertile soil

Which of the following is NOT a characteristic of land as a factor of production?

A
Land is a free gift of nature
B
Land is immobile
C
Land is perishable
D
Land has fixed supply

Which factor affects the productivity of land?

A
Climate
B
Soil fertility
C
Use of technology
D
All of the above

Which of the following is a type of labour?

A
Skilled labour
B
Unskilled labour
C
Manual labour
D
All of the above

What does the term 'division of labour' refer to?

A
The separation of tasks among workers
B
The specialization of workers in one job
C
The number of workers involved in a task
D
The process of training workers

Which of the following is NOT an advantage of division of labour?

A
Increased productivity
B
Reduction in the need for skilled workers
C
Specialization of workers
D
Increased cost of production

What is meant by the 'efficiency of labour'?

A
The number of workers required for a task
B
The ability of workers to perform tasks effectively
C
The speed at which workers work
D
The cost of hiring workers

Which of the following is NOT a reason for the low efficiency of labour in India?

A
Low level of education and training
B
Overpopulation
C
High wages
D
Lack of modern technology

What is the definition of 'capital' in economics?

A
The money needed to start a business
B
The machinery, tools, and equipment used in production
C
The skills of the workers
D
The land used for farming

Which of the following is an example of physical capital?

A
Money
B
Factories and machines
C
Shares and bonds
D
Human capital

What is meant by 'capital formation'?

A
The process of saving money
B
The creation of wealth through investment
C
The process of producing goods
D
The development of human capital

Which of the following is an example of financial capital?

A
Money used for investment
B
Factory machines
C
Land used for farming
D
The labor force

What is the main goal of capital formation?

A
To increase savings
B
To increase investment in physical assets
C
To reduce poverty
D
To reduce government expenditure

Why is capital formation important for economic growth?

A
It increases the wealth of the country
B
It increases the labor force
C
It improves the standard of living
D
All of the above

What role does an entrepreneur play in an economy?

A
They supply labor to industries
B
They take risks and organize factors of production
C
They provide financial capital
D
They manage the government

Which of the following is NOT a function of an entrepreneur?

A
Innovation
B
Risk-taking
C
Providing raw materials
D
Organizing production

What is one of the key characteristics of an entrepreneur?

A
Reliability
B
Risk aversion
C
Creativity
D
None of the above

How do entrepreneurs contribute to economic development?

A
By creating jobs and driving innovation
B
By ensuring the government makes all decisions
C
By providing subsidies to industries
D
By controlling inflation

What is the 'opportunity cost' in the context of production?

A
The cost of the factors of production
B
The next best alternative foregone
C
The profit earned by the entrepreneur
D
The total capital invested

Which of the following is a type of physical capital?

A
Money
B
Machines
C
Shares
D
Bonds

Which of the following is a type of financial capital?

A
Machinery
B
Buildings
C
Cash
D
Factories

What is the importance of capital formation for economic growth?

A
It reduces government expenditure
B
It increases the supply of capital goods
C
It decreases labor force
D
It leads to a higher level of inflation

What is meant by 'capital formation' in an economy?

A
The process of accumulating financial capital
B
The investment of capital in producing more goods
C
The process of saving money for future use
D
The conversion of physical capital into money

Which of the following is a function of an entrepreneur?

A
Providing capital
B
Organizing the factors of production
C
Ensuring government policy implementation
D
Managing workers

Which of the following characteristics is typical of an entrepreneur?

A
Risk-averse
B
Creative and innovative
C
Dependable on others for ideas
D
Not interested in profit-making

Which of the following is NOT a factor affecting the productivity of land?

A
Soil fertility
B
Climate
C
Technological development
D
Type of capital

Which of the following is NOT a characteristic of capital?

A
It is a result of past savings
B
It is used in the production process
C
It is non-perishable
D
It is naturally occurring

Which of the following is a way in which entrepreneurs contribute to economic development?

A
By creating jobs
B
By making profits for themselves
C
By investing in public goods
D
By controlling inflation

What is one key function of the entrepreneur in the production process?

A
Producing the goods
B
Managing the labor force
C
Bringing together the factors of production
D
Providing raw materials

Which of the following is NOT a type of capital?

A
Human capital
B
Social capital
C
Financial capital
D
Labor capital