For instance, test papers looked easy initially (7)
I believe the answer is:
example
'for instance' is the definition.
(thesaurus)
'test papers looked easy initially' is the wordplay.
'test' becomes 'exam' ('exam' can be a synonym of 'test'**).
'initially' says to take the initial letters.
The initial letters of 'papers looked easy' is 'ple'.
'exam'+'ple'='EXAMPLE'
(Other definitions for example that I've seen before include "Thing illustrating a general rule" , "Illustration or model" , "Illustrative case" , "warning" , "Specimen, illustration" .)