DRUKGYEL HIGHER SECONDARY SCHOOL. MIDTERM EXAMINATION- 2014 ECONOMICS CLASS: IX TOTAL MARKS: 80 TIME: 2hrs DIRECTIONS Attempt all the questions in part A and any four questions from part B. The intended marks for questions or parts of questions are given in brackets. [ ] PART A QUESTION 1 Choose the correct answer and write in the answer sheet provided. i) The problem of choice and scarcity arise because of a) Limited resources and unlimited wants b) Scarcity c) Limited wants and unlimited resources d) Choice [15 marks] ii) Economy that does not have any trade with the rest of the world is termed as a) Open economy b)Traditional economy b) Closed economy d)Modern economy iii) Which of the following is regarded as a factor of production? a) Interest b) Land c) Profit d) Rent iv) Exchange of goods and services mainly takes place because of a) People are self-sufficient. b) No one can produce all the goods and services that one needs. c) people carry out different activities for a living d) People want to satisfy their needs. v) Which of the following countries are the examples of capitalist economy? a) Cuba, china b) France, Japan c) U.S.A, Mexico d) Germany, Britain vi) Predatory pricing is adopted in a) Perfect competition market b) Monopolistic market c) Monopoly market d) none of the above. vii) There are many firms which supply similar but not identical goods; such differences in product are known as a) Homogeneous product b) Identical products c) Same products d) Differentiated product viii) Bhutanese economic system is characterized by the a) Features of socialist economy b) Features of capitalist economy c) Features of mixed economy d) None of above. ix) Which of the following pairs of commodities is an example of substitute? a) Tea and sugar b) Tea and coffee b) Pen and ink d) Shirt and trousers. DHSS/MID TERM 2014/CLASS 9/ECO Page 1 of 3 x) The electricity tariff levied on consumers by Bhutan Power Corporation is an example of a) Wholesale price b) Retail price c) Market price d) Administered price xi) Those goods whose demand increases as income of the consumer decrease and demand decrease as income increase is termed as a) Normal goods b) Complementary goods b) Inferior good d) Economic goods. xii) The Creation of goods and services, which have the capacity to satisfy human needs and wants is referred to as: a) Needs b) Factors of production c) Production d) Economic activities xiii) The Laissez- Faire Economic System is also termed as:a) Planned market system b) Mixed Economy c) Free market System d) Socialist market System xiv) The following are the characteristics of perfect competition market EXCEPT a) There is large number of buyers and sellers c) There must be perfect information b) The product must be identical and homogeneous d) There must be imperfect information xv) Fall in demand of a commodity with increase in price is called: a) Extension of demand b) Increase in demand c) Contraction of demand d) Decrease in demand PART A (Compulsory 25 marks) QUESTION 2 a) Differentiate between Economic activities and Non- Economic activities with the help of Examples ( 3) b) Define GNH . ( 2) c) Distinguish between informative and persuasive advertisements. ( 2) d) Classify markets on the basis of geographical area. Explain ( 3) QUESTION 3 e) Differentiate between “Needs” and “wants” with suitable examples. (2) f) Define international market? (1) g) Distinguish between capitalist and socialist economy with one example. (2) QUESTION 4 a) What is the main aim of a firm producing goods and services in a i) Market Economy ii) Planned Economy (1) (1) b) Write down four differences between Monopoly and Perfect competition. (4) c) Why is monopoly market known as a price maker? (2) d) Write down two applications of opportunity cost. (2) DHSS/MID TERM 2014/CLASS 9/ECO Page 2 of 3 PART–B (40 MARKS) ATTEMPT ANY FOUR QUESTIONS FROM THIS SECTION QUESTION 5 a) Explain the difficulties of barter system. b) Examine any four reasons why we exchange goods and services. c) Define a monopolistic market structure. (5) (4) (1) QUESTION 6 a) State wealth definition of economics. ( 1). b) People often help their neighbors in harvesting crops. Is it treated as an economic activity? Give reasons. (2) c) Distinguish between traditional economy and modern economy. (2) d) Under which category of economic system do you think Bhutan fall in. Why? (2) e) Explain three features of a market structure which is found in reality? (3) QUESTION 7 a) b) c) d) e) State the ‘law of Demand? (2) Why demand curve slope downward from left to right? (2) Distinguish between normal goods and inferior goods with suitable examples. (2) How are the central economic problems solved in a free market economy? (2) Around 80 % of our population work under the primary sector and only 20 % work under secondary and tertiary sector. What has the government done to promote secondary and tertiary sector in Bhutan? (2) QUESTION 8 a) With the help of diagram explain ‘increase in supply’ and ‘extension of supply’. b) Explain any four determinants of demand for a commodity? c) Explain the term ‘scarcity’ and ‘choice’ in economics. d) Define selling cost? (2) (4) (2) (2) QUESTION 9 a) Differentiate between “movement along the demand curve and shift in demand curve” with the help of diagram. (4) b) “Demand and supply act like the two blades of a scissor”. How is price determined by the forces of demand and supply of a commodity? (5) c) What is a market? (1) QUESTION 10 a) How is GNH a better measure of economic growth than GDP? ( 5) b) Economics as a subject has both practical and theoretical significance. Explain the practical advantages. (3) c) What are the factors of production? (2) BEST OF LUCK DHSS/MID TERM 2014/CLASS 9/ECO Page 3 of 3