MES Kishore Kendra Public School

Grade: X
Vidyaranyapura, Bangalore-97 Date: 25.09.2024
|Term Exam, September 2024-25
ECONOMIC APPLICATIONs

Maximum Marks: 100

Time allowed: Two hours
Answers to this Paper must be written on the paper provided separately.
You will not be allowed to write during the first 15
This time is to be spent in reading the question minutes.
The time qiven at the head of this Paper is the time paper.
allowed for writing the answers.
Attempt all questions from Section A and any four questions from
The intended marks for questions or parts of questions are given Section B.
in brackets (].

SectionA
(Attempt all questions from this section)
Question 1
Choose the correct answer and write the correct option:

1. When would the demand curve take the shape of a rectangular hyperbola?
a) Ed =0
b) Ed= 1
c) Ed > 1
d) Ed <1

2. Mrs Dinesh bought a refrigerator. She made the

payment using her credit card.
Which function of money has been highlighted in the above
example?
a) Store of value
b) Transfer of value
c) Standard of deferred payment
d) Transfer of money

3. The difference between the value of security and the amount of loan sanctioned against these
securities is known as:
a) Moral suasion
b) Regulation of consumer's credit
c) Credit rationing
d) Regulations of margin requirement
 4, Which factor of production is NOT a hired
a) Land factor?
b) Labour
c) Capital
d) Entrepreneur

5. Demand for goods that have multiple Uses is

a) Composite demand calle0
b) Joint demand
c) Derived demand
d) Direct demand

6. Read the following statements Choose one of the

given below: Assertion ((A) and Reason (R). correct aternatyax
Assertion (A): industries like paper and tactories generate
air-pollution.
sUgar mills and cement huge amounts o
Reason (R): destruction.
Industrialisation often leads to
degradation of the
pollution and habitat
ecosystem rather than their restoration.
,contributingto the
a) e of
Assertion (A) and reason (R) are true, and Reason(R}is the correctexplanation
Both
Assertion (A).
) Both Assertion (A) and Reason (R) are true, but Reason (R)is not the correct explanation
Assertion (A).
c) Assertion (A) is true, but Reason (R) is wrong
d) Assertion (A)is false, but Reason (R) is true.
7. Human labour is different from mechanical labour because:
a) Machines are expensive
b) Human labour carries an element of judgment
c) Machines depreciates
d) Human dies

8. Supply always refers to a specific desired quantity which aseller is willing to:
a) Store
b) Purchase
c) Sell
d) All of the above
9. Choose the correct order of Capital Formation:
a) Mobilasation of savings ’ investment savings
b) Savings investment Mobilasation of savings
) Savings ’ mobilisation ofsavings Investment
d) Mobilasation of savings savings investment

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10. Complete the following flow chart by choosing the correct option:

Contraction
Central banks in credit
seiling creation by
securities
commercial
banks

capacity less
a) Commercial banks have less reserve, Credit granting
capacity less
b) Commercial banks have more reserve, Credit granting
c) Commercial banks have less reserve, Credit granting capacity more
d) Commercial banks have more reserve, Credit granting capacity more

11. In the given figure, movement from point Ato point Bindicates of supply and
movement from point Ato point Cindicates of supply.

P B

’X

Quantity

a) Expansion and Increase

b) Expansion and Decrease
c) Expansion and Contraction
d) Increase and Contraction

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 12. The following image depicts:

Reserve
Bank Commercial Borrowers
of India
frombänks Banks tolend

a) Bank Rate
b) Reserve Repo Rate
c) Repo Rate

13. Purchasing power of money falls when:

a) Price decreases
b) Price increases
c) Income increases
d) Income decreases

14. Which of the following is NOT

considered as labour in economics?
(i) Washing of clothes by a
washerman
(ii) A film star acting in a film
(i) a man preparing tea for his wife
(iv) the judgement given by a judge in the court
a) Only (ü)
b) (ii) and (iv)
c) Only (ii)
d) Only (iv)

15. Read the following statements Assertion (A) and

Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): All types of work done in the production process can be categorised as labour
Reason (R): The specialisation of workers in particular parts of a production process is called the
division of labour.
a) Assertion (A) is true, but Reason (R) is wrong.
b) Assertion (A)is false, but Reason (R) is true.
c) Both Assertion (A) and reason (R) are true, and Reason(R)is the correct
explanation of
Assertion (A).
d) Both Assertion (A) and Reason (R) are true, but Reason (R)is not the correct explanation of
Assertion (A).

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16. Eating out in a restaurant is an example of Elastic supply. The reason being:
a) It is a necessity.
b) Food served in restaurants is expensive.
c) It is a luxury.
d) Food served in restaurants is tasty.

units when the prices of

17. Hitesh demands five units of pens for 4 per unit. But, he buys 10
of demand?
pens fall to 3 per unit. What will be the price elasticity
a) Ed =1
b) Ed > 1
c) Ed<1
d) Ed =0

18. What does this positively curved, Demand curve depict:

qutydeanded
a) Expansion of demand
b) Exception of demand
c) Contraction of demand
d) Increase in demand

19, Which of these banks formulates the credit control tools?

a) Canara Bank
b) Industrial Development Bank of India
c) State Bank of India
d) Reserve Bank of India

20. If the percentage increase in the quantity of acommodity is smaller than the percentage fallin its
Price, the coefficient of price elasticity of demand is:
a) Greater than 1
b) Equal to 1
c) Smaller than 1
d) Equal to zero

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 Question 2
a) Define Elasticity of Demand. Explain any one factor affecting Elasticity of Dermand. (2/
[2
b) Distinguish between Hyper and Running inflation.
[2
c) Write any two characteristics of capital.
two assumptions of Law of Demand. [2
d) Explain the Law of Demand. Give any (21
e) Give reason:
production rises, supply will decrease.
(i) When the price of factors of
(ii) Labour differs in efficiency.

Question 3
Give an example.
a) What are Veblen goods? [2]
(2] supply Es > 1. (2
Draw and explain the degree of elasticity of
b) and farsighted.
Explain "An Entrepreneur is both foresighted of legal tender.
c) Mention the two types
legal tender?
money calleda [21
d) Why is
(2] Cite a reason.
a country
needa Central Bank?
e) Why does Section B
this section)
four questions from
(Attempt any

Bank.
Question 4 Commercial Bank and Central
a)
Distinguish between
[8! elaborate these points:
reference to Lawof Demand
b) With of demand?
What do you mean by the term shift
(0) [2]
[2 of shift of demand. diagramn, 31
() Explain anytwo causes
depict this phenomena with the help of a
increasse of demand.
(ii) Discuss the term
economv in detail.
Questlon S
techniques that the RBI uses to control credit in the
a) Exolaln the given four
[8
) CRR
(i1) SLR
(H) OMO
(v) Bank Rate
'Land', answer these:
b) With reference to
characteristics of land.
(0) Write any two [21
() Elaborate: Land's importance in a) Agricultural development and b) Importance to man (3
() Explain any two factors affecting Productivity of Land. (2]

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Question6
a) What do you mean by the term Inflation How does Inflation affect the following?
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(0) Debtors and Creditors
(üi) Fixed income group
(i) Investors
b) What does the law of Supply say? Explain any three determinants of Supply in detail.
(8)

Question 7
a) Read the extract given below and answer the
questions that follow:
A clutch of Indian banks led by the market
leader State Bank of India are being drawn into
commodity derivatives business which they think hasa considerable business potential. SBI
has
Sought the approval of The Reserve Bank of India to get into exchange
A couple of other state owned banks are also traded commodity futures.
gearing- up to get into this segment as institutional
players, according to the bankers. SBI for instance feels that
there is a
opportunity to be tapped across a swathe of clients including farmers, considerable business
(0) What type of bank is
SBI? Name any other two similar banks. manufacturers and traders.
(iü) Write any two [2]
advantages of a bank account.
[2]
(ii) Explain any two types of
loan advancement done by these banks.
[4]
b) Define Money. Discuss functions of money
one each of Primary, Secondary and
functions. Contingent
[7]

Question 8
a) With reference to ' Destruction of Ecosystem' how do these affect the
[8] ecosystem adversely?
(i) Mining
(i) Dwelling units
(iii) Industrialisation
(iv) Urbanisation
b) (i) Explain these degrees of elasticity of
supply. Draw diagrams too.
1. Relatively Inelastic supply (3)
2. Unit Elastic supply
(ü) Price of acommodity
increases from 10 to 12. As a result, its supply rises from 25
units to 42 units. Find out the elasticity of supply.
[2)
 The individual supply schedule
(ii) Given below is the market supply schedule of a commodity.
of firm Band Care given. Prepare the individual schedule for firm A. [2

Price () No. of Units No. of Units No. of Units Total

supplied by supplied by supplied by Supply
Firm A Firm Firm
B C
15 25 60
10
20 30 100
20
25
35 30 140
30 40 180
40

Question 9
a) Define Labour. Discuss any four
characteristics of labour in detail. [7
b) Differentiate between:
(i) Substitute goods and
(8]
complementary goods
(ii) Sunk capital and floating capital
(iii)
Current deposit and savings deposit
(iv)
Complete process of complex division of labour and incomplete process of complex
labour
division of

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