DARLAND INTERNATIONAL SCHOOL

Half-Yearly Examination 2021-2022

Std-IX
Subject: Economics
Time: 2:00 Hours Full Marks: 70

1. Answer the following questions by using this diagram. 5

a. Suggest one reason why spending on health care in western and central Europe
is far higher than that on military goods, compared with the other regions shown. 3
b. What is meant by opportunity cost? Use this case as an example in your answer.
2
2. Answer the following question by using the diagram. 15

a. What is meant by a Production Possibility Curve? Use this case as an example in

your answer. 3
b. The country is considering a movement from b to c. What will be the
opportunity cost of such a movement? 4
c. What is meant by economic growth? Assess the effect of economic growth by
using this diagram. 4
d. What would be the possible changes on the ppc if the economy faces a negative
growth? Use a diagram in your explanation. 4
3. Answer the following questions by using this diagram. 15

a. What is meant by effective demand? 2

b. Describe the inverse relationship between price and quantity demanded of rice.
Use this case as an example in your answer. 3
c. How will the change in the income affect the demand curve? Use a diagram in
your explanation. 5
d. What is the difference between a movement along the demand curve and shift in
the demand curve? Use a diagram in your explanation. 5
4. Answer the following questions. 15
a. What is the difference between normal goods and inferior goods? 2
b. Justify the statement “spending on the advertising will help to increase the
demand for cars”. 3
c. Suggest two reasons why global demand for the cars is rising. 4
d. What effect will the following have on the global demand for cars,
i. an increase in population
ii. a rise in the price of petrol
iii. an increase in the global incomes
Use diagrams in your answer. 6
5. Answer the following questions. 15
a. Describe the proportionate relationship in supply curve by using a diagram. 5
b. Show the changes on a diagram 5
i. if there is a rise in production costs
ii. if there is a fall in production costs
c. Why it is impossible for sellers to increase supply even when prices rise? 5