ICSE Class 10 Economics — Flashcards for Quick Revision

A: Production is a process in which materials are transformed from one form to another. Whatever is used in the process is called input, and whatever is obtained is called output.

A: Material goods are goods with a definite shape and size that can be seen or touched, such as a table, fan, pen, or cloth.

A: Domestic activities may create utility, but they are not included in production because they have no money value. Production must add value that can be measured in money terms.

A: Demand means effective desire for a commodity, backed by the ability to pay and the willingness to pay. It is not just a wish. A person must want the good, be able to buy it, and be willing to spend m

A: Demand requires three conditions: desire for the commodity, capacity or ability to pay, and willingness to pay the price. If any one of these is missing, demand does not exist in economics.

A: Demand refers to different quantities of a good demanded at different prices during a given period of time. Quantity demanded means the specific amount bought at one particular price at one particular

A: Price elasticity of demand tells the amount of change in quantity demanded of a commodity in response to a change in its price. It shows how strongly consumers react when price changes. A larger react

A: The formula is: E_d = Percentage change in demand for the good / Percentage change in price of the good. It measures demand response in percentage terms, so it is independent of units.

A: Percentage changes are used because they are independent of units. This makes it possible to compare changes in different goods fairly, even if their units are different.