ICSE Class 9 Economic Applications by Pavan | Practice Test to Test Your Knowledge
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  3. ICSE Class 9 Economic Applications
ICSE Class 9 Economic Applications

ICSE Class 9 Economic Applications

Detailed mock test covering Economic Environment and Business Fundamentals. Includes case studies and practical applications.

2025-07-19
Pavan Pavan
ICSE Economics Class 9 Grade 9

Duration

30 min

Questions

30

Marking

Negative

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Questions Preview

What is the meaning of Economics?

A
The study of human behavior in relation to the production and consumption of goods and services.
B
The study of resources and their distribution among different sectors.
C
The study of money management and investments.
D
The study of government policies related to production.

What is the primary function of the consumer in an economy?

A
To produce goods and services
B
To consume goods and services
C
To regulate the economy
D
To allocate resources efficiently

What is the role of the producer in an economy?

A
To consume goods and services
B
To supply goods and services
C
To control the market prices
D
To regulate economic growth

What is the role of government in an economy?

A
To control consumer spending
B
To produce goods and services
C
To regulate the production and consumption of goods and services
D
To allocate resources among households

What is the role of households in an economy?

A
To consume goods and services
B
To allocate resources among businesses
C
To provide labor and capital for production
D
Both A and C

Which of the following is an economic entity?

A
Consumer
B
Producer
C
Household
D
All of the above

What does the term 'economy' refer to?

A
The government sector of a country
B
The production, distribution, and consumption of goods and services in a country
C
The consumption of resources by households
D
The market for financial services

Which of the following defines the concept of scarcity in economics?

A
A situation where resources are more than sufficient to meet the demand
B
A situation where resources are limited in comparison to human wants
C
A situation where resources are abundant
D
A situation where there is no need for resource allocation

What is economic growth?

A
Increase in the country’s population
B
Increase in the amount of goods and services produced in an economy over time
C
Increase in the number of industries in a country
D
Increase in the distribution of resources

What is the difference between economic growth and economic development?

A
Economic growth is about an increase in income, while economic development is about an increase in happiness.
B
Economic growth is an increase in the output of goods and services, while economic development is about the improvement in living standards and quality of life.
C
Economic growth focuses on sustainability, while economic development focuses on trade.
D
There is no difference between economic growth and economic development.

What is the first question that every economy must address?

A
How to allocate resources?
B
What to produce?
C
How to ensure fairness in distribution?
D
How to grow the economy?

Which of the following is a key question faced by an economy?

A
How to allocate resources, how to protect the environment, how to reduce inflation
B
What to produce, how to produce, for whom to produce
C
How to control interest rates, how to tax, how to increase government spending
D
How to create jobs, how to tax, how to distribute resources

What is the concept of allocation of resources in economics?

A
Allocating resources evenly among all consumers
B
Determining the best way to use limited resources to satisfy unlimited wants
C
Allocating resources to only the government
D
Ensuring that resources are not used at all

What does the term 'economic development' refer to?

A
Increase in the number of industries
B
Improvement in the living standards of people in a country
C
Increase in economic growth rate
D
Expansion of international trade

What does scarcity refer to in economics?

A
An abundance of resources
B
Limited resources to meet unlimited wants
C
The ability to produce anything
D
The regulation of prices by the government

Who is responsible for the allocation of resources in a market economy?

A
The government
B
Consumers and producers through the market system
C
The household sector
D
The banking system

What is the economic role of the government?

A
To regulate the market prices
B
To allocate resources and ensure fairness
C
To encourage consumer spending
D
To create and enforce the laws of production

What are the three basic economic questions faced by every society?

A
How to allocate resources, how to protect the environment, how to reduce inflation
B
What to produce, how to produce, for whom to produce
C
How to control interest rates, how to tax, how to increase government spending
D
How to create jobs, how to tax, how to distribute resources

Which of the following is an example of a resource?

A
Money
B
Human labor
C
Natural resources
D
All of the above

What is the opportunity cost in economics?

A
The amount of money spent on production
B
The loss of the next best alternative when a choice is made
C
The total cost of producing goods
D
The total revenue generated by selling goods

What is the significance of economic growth?

A
Economic growth leads to a decline in the standard of living
B
Economic growth increases the production of goods and services
C
Economic growth leads to unemployment
D
Economic growth reduces government spending

How does economic development improve the quality of life?

A
By increasing industrial production
B
By ensuring equitable distribution of wealth
C
By focusing on monetary growth alone
D
By improving education, healthcare, and infrastructure

Which of the following is an example of economic growth?

A
Increase in GDP and per capita income
B
Better income distribution
C
Improvement in the standard of living
D
All of the above

Which of the following is true about scarcity?

A
Scarcity only affects developing countries
B
Scarcity leads to the need for allocation of resources
C
Scarcity means unlimited resources
D
Scarcity is not a problem in affluent societies

What does the term 'market economy' refer to?

A
An economy controlled by the government
B
An economy where decisions regarding investment, production, and distribution are based on market demand
C
An economy that does not involve trade
D
An economy with limited consumer choices

What is meant by the term 'economic system'?

A
A system used by the government to control economic activities
B
A system for producing, distributing, and consuming goods and services
C
A method used to measure economic growth
D
A market system for setting prices

What does a mixed economy combine?

A
Government control and private market decisions
B
Full government control
C
Total reliance on market forces
D
No government interference

Which of the following best defines opportunity cost?

A
The price paid for a good or service
B
The benefit lost when one alternative is chosen over another
C
The cost of an item in monetary terms
D
The cost of labor used in production

Which of the following is NOT a feature of a market economy?

A
Private ownership of resources
B
Prices determined by supply and demand
C
Government control over production
D
Competition between businesses

Which of the following is an example of a public good?

A
Private health insurance
B
Street lighting
C
A restaurant
D
A retail store