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ANANDNIKETAN Satellite Campus Preliminary Examination 2()22-2023 Grade 10 ECONOMICS APPLICATIONS (Maxinuun Marks: 100) (Time allowed: Two hours) AnsM'erto this Paper Illust be wr ten on the paper provided separately. You"'ill not be allowed to write during thefirst 15 minutes. This tinte is to be spent in reading the Question Paper. The tinw given at the head of this Paper is the tinw allowedfor writing the answers. Attempt all questionsfrom Section A and any four questionsfrom Section B. The intended marks for questions or parts of questionsare given in brackets [1. SECTION A (40 Marks) Attempt all questionsfrom this Section. Question 1 Choose the correct option and write the same. (1) (2) (3) Electricity is an example of (a) Composite Demand (b) Joint Demand (c) Inferior Demand. (d) Complementary Demand Mobile phones usually have (a) Perfectlycompetitive e (b) Monopolistic Competitive (c) Monopoly (d) Monopsony [201 demand. market. Which of these will NOT be considered as capital? (a) Stationery owned by a student (b) Stationery owned by a firm (c) Stationery owned by the Government All the three options will be considered capital. (d) (4) (5) (6) The price of cheesecakes increasesby 22 % and the quantity supplied of cheesecakes increases by 25 %. The price elasticity of supply for the cheesecakes is (a) ep>l (b) ep < I (c) ep = I (d) ep = 00 22 If consumer income declines, then the demand for (a) normal goods will increase. (b) inferior goods will increase. (c) substitute goods will increase. (d) complementary goods will increase. If the local pizzeria raises the price of a medium pizza <70 to and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is (a) 67 (b) 1.5 (c) 2 (d) 3. (7) (8) The government imposes tax (a) To raise revenue. (b) To reduce inequalities of income and wealth. (c) Both (a) and (b) e (d) Neither (a) nor (b) An increase in the price of electricitywill cause an: Increase in the demand for solar heaters (a) Decrease in the demand for solar heaters (b) (c) (d) Increase in the demand for Geysers None of the above (9) Following is not the feature of perfect connpetition. (a) Very Large number of buyers and sellers. (b) Homogeneous Product. (c) Free entry or exit of firms. (d) Selling Costs (10) (11) The is on the person who pays it in the first instance. (a) Incidence of tax (b) Impact of tax (c) The burden of tax (d) None of the above. If the market supply curve for a product shift rightwards, what is the best possible explanation for this shift? (a) Increase in the price of raw materials (b) Introduction of a tax on that product by the government Introduction of a new technique that makes the production of that commodity (c) cheaper. (d) (12) An advertising campaign that is successful in promotingthe product The policy of converting public ownership of an asset to private ownership is (13) (a) Nationalisation (b) Liberalisation (c) Globalisation (d) Privatisation and complete Observe the relationship of the first pair of words Office furniture: Fixed capital Power for running the plant: (a) Remunerative capital (b) Circulating capital (c) Debt capital (d) Sunk capital the second pair: definition: Choose the correct ternl for the given utility. Any activity which creates present and future (15) (16) (17) (18) (a) Developinent (b) Production (c) Constilnption (d) Distribution Which of the following does not belong to the group? (a) Accepting deposits (b) Providing loans and advances (c) Controlling credit (d) Creating credit Choose the correct order of Capital formation: (a) Mobilisation of savings iInvestment YSavings (b) Savings (c) Investment Savings iMobilisation of savings (d) None of the above Mobilisation of savings Investment Productivity of labour takes into consideration: (a) Quality of work done. (b) Quantity of work done (c) Time taken to do the work (d) All of the above Which of the statements gives a true picture of the effect of loweringthe cash reserve ratio by the central bank of a country? (a) The lendingcapacity of commercial banks will increase (b) The lending capacity of commercial banks will decrease (c) (d) The lending capacity of commercial banks may increase or decrease There is no effect on the lendingcapacity of commercial bank. (19) Land is heterogeneous because: It Naries in (ii) It Naries in productivity. (iii) It varies in density of population. (a) All of thenl are applicable (b) Only (i) and (iii) are applicable. (c) Only (i) and (ii) are applicable Only (ii) and (iii) are applicable (20) Identify the type of taxation shown in the figure below: Tax Rate DIRECT TAX INCOME (a) Progressive taxation (b) Regressive taxation (c) Proportional taxation (d) Degressive taxation Question 2 (a) State two active factors of production. Give reasons to support your answer. (b) Define fiscal policy. (c) Define monopoly. Give an example. (d) What is meant by creeping inflation? (e) How does central bank act as a custodian of foreign exchange reserve? Question 3 (a) (b) State the adverse impact of urbanisation on the ecosystejn. conunodity B also increases. If the price of commodity A increases, the demand (c) What is the relationship between goods A and B. Give an exajnple? "The role of the state is important in developing the econojnic in ti astructureofa developing economy." Give 'wo reasons to suppojt your answer, 1501 (d) Distinguish between stock and supply. (e) Briefly explain why direct taxes foster civic consciousness among people. SECTION B (60 Marks) Ansuper any four questions fronl this Section. uestion 4 State the Law of Demand. Explain the following exceptions to this law. (a) (b) (i) Giffen Goods (ii) Articles of Snob Appeal. (iii) Quality Price Relationship. 171 What is meant by division of labour? Explain anyfour advantages of division of labour. Question 5 (a) "Land is the original source of all material wealth." In this context explain anyfour determinants that influence the productivity of land. (b) Point out the differences between perfect competition and monopoly on the basis of: (i) Number of Sellers (ii) Market Price. (iii) Entry Of Firms. (iv) Type. of Prod uct Produced. 181 Question 6 (a) Define capital. Explain anyfour distinctive characteristics of capital. (b) Distinguish between movement along the supply curve and shift in the supply curve with the help of diagrams. 171 181 Question 7 f.. (a) State and explain the elasticity of supply when: (i) (ii) (iii) A straight-line supply curve cuts the Y-axis. A straight-line supply curve passes through the origin O. A straight-line supply curve is parallel to the Y-axis. 171 (b) Who controls the credit supply in an economy? What is this policy called? Explain how the f llovvingcan control inflation in an econolny? Statutory Liquidity Ratio (ii) Open Market Operations. (iii) Regulation of Margin Requirements. 181 uestion 8 (a) (b) Define money. How does Inoney perform its role as: (i) Medium of Exchange (ii) Measure of Value (iii) Store of Value. (i) What are public sector enterprises? Give Avoexamples. (ii) Explain anyfour reasons for the privatisation of public sector enterprises. Question 9 (a) (b) Define a tax. Explain the following with examples. (i) Progressive Tax. (ii) Proportional Tax. (iii) Degressive Tax. Explain the methods adopted by commercial banks to mobilise funds from the public. 181
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