ICSE Class 11 Economics by Pavan | Practice Test to Test Your Knowledge
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ICSE Class 11 Economics

ICSE Class 11 Economics

Detailed mock test covering Basic Economic Concepts, Demand and Supply, and Market Structure. Includes numerical and theoretical questions.

2025-07-19
Pavan Pavan
ICSE Class 11 Economics Grade 11

Duration

30 min

Questions

25

Marking

Negative

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Questions Preview

Which of the following is Adam Smith's definition of economics?

A
The science of wealth production and distribution
B
The science of scarcity and choice
C
The science of social welfare
D
The science of production and consumption

Which economist defined economics as the science of wealth, but also emphasized its relation to human welfare?

A
Alfred Marshall
B
Lionel Robbins
C
Samuelson
D
Adam Smith

According to Lionel Robbins, economics is the study of:

A
Wealth and welfare
B
Human behavior as a relationship between ends and scarce means
C
Production and consumption
D
Scarcity and its effects on society

Which of the following is a criticism of Adam Smith’s definition of economics?

A
It focuses too much on wealth and ignores human welfare
B
It includes social welfare but excludes wealth
C
It only emphasizes production and distribution
D
It does not consider government intervention

Which of the following is the basic understanding of economics in relation to scarcity?

A
The scarcity of resources forces choices to be made about their allocation
B
Economics is only about the production of goods
C
Scarcity leads to the elimination of choice
D
Scarcity has no impact on economic decisions

What is the primary difference between Microeconomics and Macroeconomics?

A
Microeconomics studies individual economic units, while macroeconomics studies the economy as a whole
B
Microeconomics is concerned with global economics, while macroeconomics deals with national economics
C
Microeconomics studies social welfare, while macroeconomics focuses on wealth distribution
D
Microeconomics is focused on government policies, while macroeconomics studies corporate decisions

Which of the following terms is associated with the concept of 'utility' in economics?

A
Satisfaction or pleasure derived from consuming goods and services
B
The price at which goods are bought and sold
C
The value of goods in the market
D
The total wealth of an individual

What does 'marginal utility' refer to?

A
The additional satisfaction from consuming one more unit of a good
B
The total satisfaction derived from all units of a good
C
The value of a good in the market
D
The income earned by an individual from consumption

What is the relationship between price and marginal utility?

A
As price rises, marginal utility generally falls
B
As price rises, marginal utility rises
C
Price and marginal utility are unrelated
D
Price and marginal utility are inversely proportional

What is the meaning of 'aggregate demand'?

A
The total demand for goods and services in an economy at different price levels
B
The total supply of goods and services in an economy
C
The demand for goods in a specific market
D
The demand for labor in the economy

What does 'aggregate supply' refer to?

A
The total quantity of goods and services that producers are willing to supply at different price levels
B
The total demand for goods and services in an economy
C
The supply of goods in a specific market
D
The supply of labor in the economy

Which of the following defines 'business cycle'?

A
The periodic fluctuations in economic activity, characterized by periods of expansion and contraction
B
The continuous growth of an economy without any recession
C
The level of output and consumption in an economy
D
The total supply and demand for goods in an economy

What is 'capital' in economics?

A
The wealth used to produce more wealth, such as factories and machinery
B
The total wealth of an individual
C
Money used to purchase goods and services
D
The wages earned by workers

What does 'investment' refer to in economics?

A
The process of allocating capital to generate returns or create wealth
B
The process of saving money for future use
C
The purchase of goods and services
D
The spending by the government on infrastructure projects

What does 'income' refer to in economics?

A
The money earned by individuals for their labor, capital, or land
B
The amount of wealth possessed by an individual
C
The total savings of an individual
D
The money paid by the government as welfare

Which of the following best defines 'production' in economics?

A
The process of creating goods and services from inputs
B
The consumption of goods and services
C
The saving of money for future investments
D
The purchase of goods and services in the market

Which of the following is an example of consumption in economics?

A
Buying a car for personal use
B
Building a factory
C
Investing in stocks
D
Saving money in a bank account

What is the meaning of 'saving' in economics?

A
The portion of income not spent on consumption
B
The purchase of goods for future use
C
The total wealth possessed by an individual
D
The money paid as taxes to the government

Which of the following describes 'the basic economic problem'?

A
Scarcity of resources and the need to make choices
B
Unemployment and underemployment
C
Inflation and deflation
D
Economic inequality

Which of the following is a characteristic of a developed economy?

A
High income levels, advanced infrastructure, and technology
B
Low industrial production and low income levels
C
Dependence on agriculture and low standard of living
D
Limited government intervention in economic affairs

What is a characteristic of a developing economy?

A
Low levels of industrialization, lower standard of living
B
High levels of technological advancement
C
High per capita income and high levels of investment
D
Fully developed infrastructure

What is 'capitalism' in economic systems?

A
An economic system based on private ownership and free markets
B
An economic system with state control over resources
C
An economic system where resources are equally distributed
D
An economic system based on collective ownership

What does 'socialism' focus on in terms of economic systems?

A
Public ownership and control over the means of production
B
Private ownership and minimal government intervention
C
Market-driven economies with little government regulation
D
Full government control over all economic activities

What does a mixed economy combine?

A
Elements of both capitalism and socialism
B
Private ownership of resources and complete government control
C
Only public ownership and state control
D
Purely free market economy with no government regulation

What mechanism is used in capitalist economies to solve basic economic problems?

A
The price mechanism
B
Government central planning
C
Trade agreements between nations
D
Regulation of industries by the state