10th Indian Economy

INDIAN ECONOMY AFTER INDEPENDENCE

I. CHOOSE THE CORRECT ANSWER:

1. Five Year plan in India was borrowed from Soviet Russia

2. Eleventh Five Year Plan Period is 2007-2012

3. Chairman of Planning commission of India is Prime Minister of India

4. Planning Commission of India was setup in the year 1950

5. Nehru decided that India would be a Mixed Economy

6. Green Revolution was introduced in the year 1967

7. Bhoodan Movement was started by Acharya Vinobhabhave

8. Which year has a special significance in Indian Economy? 1991

9. The organization which is responsible for research and development in the area of Satellite and Communication is ISRO

10. As per 2001 census the literacy rate in India is 64.8%

II. Short answer:

1. Write any three objectives of Eleventh Five year plan.

Objectives of Eleventh Five year plan

  • To reduce the subsidies in power, fertilizer.
  • Promoting agricultural research.
  • To ensure environmental protection.
  • Larger employment opportunities.
  • To develop rural infrastructure.

2. Write a note on Green Revolution.

Green Revolution

Green revolution was introduced in the year 1967.

The Indian Council of Agricultural Research (ICAR) introduced high Yielding Variety (HYV) seeds

Increase the agricultural production with improved irrigation facilities.

3. What is Mixed Economy?

Mixed economy in which public and private sectors would co exists.

4. What is Multi National Corporation?

Multi-National Corporations (MNC) are business firms operating in several countries but centrally managed from one (home) country.

5. Write a note on cottage Industries.

Cottage industries are household industries depending on local market and production is of primitive methods. Example: – Coir industries.

6. Write a note on Liberalization

Liberalization means movement towards a free market system.

Withdrawal of regulation and restrictions.

Private sectors are encouraged to enter into core industries.

7. What is Privatization?

Privatization means transforming all economic activities from public sector to private sector. It refers to the setting up of private units in public utility services.

8. What do you mean by Globalization?

Globalization means country draw raw materials from any source of the world and manufacture goods and services. Finished goods find a place in global market is the linkage of nation’s markets with global markets.

III. Detail:

1. Write down the Objectives of Eleventh Five year plan.

Objectives Eleventh Five Year Plan (2007-2012):-

Increasing the public investment in irrigation, rural electrification and rural roads.

  • To reduce the subsidies in power, fertilizer.
  • Promoting agricultural research.
  • To ensure environmental protection.
  • Larger employment opportunities.
  • To develop rural infrastructure.
  • To abolish poverty.
  • To reduce the dropout rate in primary schools

2. Explain Green Revolution.

  • Green revolution was introduced in the year 1967.
  • The Indian Council of Agricultural Research (ICAR) introduced high Yielding Variety (HYV) seeds to increase the agricultural production with improved irrigation facilities.

Land Reforms:-

  • The government initiated land reform measures like land ceiling and tenancy legislation.
  • The Bhoodhan movement started by Vinobhavbhave deserves a mention.
  • Through the Bhoodhan movement millions of acres of land were received from the landlords and distributed to the landless poor.

High Yielding Variety seeds program:-

  • The green revolution largely means increasing production by the use of High Yielding Variety seeds.
  • This enabled India to achieve self-sufficiency in food grain production.
  • The credit goes to Indian Council of Agriculture Research in India particularly Ludhiana, Pantnagar (UP) and Coimbatore.

3. Explain Economic Reforms of 1991.

Economic Reforms of 1991:-

  • The year 1991 has a special significance in the Indian economy.
  • The economic reforms aimed at rapid industrialization.

Multi-National Corporations (MNC):-

  • Multi-National corporations (MNC) are business firms operating in several countries but centrally managed from one (home) country.

Cottage industries:-

  • Cottage industries are household industries depending on local market and production is of primitive methods. Example: – Coir industries.

Liberalization:-

  • Liberalization means movement towards a free market system.
  • Withdrawal of regulation and restrictions.
  • Private sectors are encouraged to enter into core industries.

Privatization:-

  • Privatization means transforming all economic activities from public sector to private sector. It refers to the setting up of private units in public utility services.

Globalization:-

  • Globalization means country draw raw materials from any source of the world and manufacture goods and services. Finished goods find a place in global market is the linkage of nation’s markets with global markets.

4. Explain the various Power Programs in Tamil Nadu

The important power stations in Tamil nadu are listed below:-

Thermal power:-

Thermal power stations are in Ennore, Tuticorin, Mettur, Basin Bridge and Neyveli.

Hydel power:-

Hydel power stations are in Mettur, Kundah, Periyar Dam, Kothayar Dam, Pykara, Singara and Moyar.

Atomic Energy:-

Atomic power stations are in Kalpakkam and Koodangulam.

Wind Energy:-

It is a non-conventional form of energy. The wind mills are situated in Coimbatore, Kanyakumari, Tuticorin, Ramanathapuram and Tirunelveli.

Biomass Energy:-

This is another kind of non-conventional energy. This kind of electricity is produced in Namakkal and Dharmapuri Districts.

10th Indian Economy

National Income

I. Choose the correct answer:

1. National Income is otherwise called Gross National Product

2. National income of a country can be calculated by 3 methods

3. Net National Product = GNP – Depreciation

4. India’s Per capita income is 950 dollars

5. Primary sector consists of Agriculture

6. National Income is a measure of Total value of goods & services

7. Expenditure method estimates national income from the Savings side

8. Income method sums all forms of Income

9. Percapita Income is an indicator of Living Standard of people

10. Primary sector contribution to national income in India is 15.8%

II. Write short notes on the following:

1. Define National income.

Definition of National Income

“National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year”. Commonly National Income is called as Gross National Product or National Dividend.

2. How you arrive at NNP?

Net National Product (NNP)

Net National Product is arrived by making some adjustment with regard to depreciation. That is we arrive the NNP by deducting the value of depreciation from Gross National Products (GNP)

NNP= GNP (-) Depreciation

3. Write a note on Income method.

In this method, the Income and Payments received by all the people in the country are calculated.

4. What is Percapita Income?

Percapita Income (PCI)

Percapita Income is an indicator to show the living standard of people in a country.

It is obtained by dividing the national income by the population of a country.

Percapita Income = National Income / Population

5. Write any two needs for the study of National Income

Need for the study of National Income:-

  • To measure the size of the economy and economic performance.
  • To measure the production of goods and services.
  • To trace the trend of the economic growth of our country in relation other countries.

6. What is tertiary sector?

Tertiary sector is service sector

Tertiary sector includes trade, hotel, industry, transport, storage, communication, finance, insurance, real estate and social services.

7. What is Laissez – faire?

Laissez-faire means non-intervention by the government.

The government was more or less a police state.

Government functions catering to the needs of the people.

8. Write a note on the Protective functions of modern welfare state.

Protective functions:-

  • Economic development can be achieved only if there is peace in the state.
  • Government is to maintain law and order.
  • Protecting the people from external aggression and internal disorder.

9. Define Gross Domestic Product.

Gross Domestic Product (GDP)

Gross Domestic Product is the total value of output (goods and services) produced by the factors of production within the geographical boundaries of the country.

10. What is net Domestic Product?

Net Domestic Product (NDP)

Net Domestic Product is part of Gross Domestic product. Net Domestic Product is obtained from the Gross Domestic Product by deducting the quantum of tear and wear expenses (depreciation).

III. Write in a paragraph:

1. Explain two basic concepts of National Income.

Net National Product (NNP):-

Net National Product is arrived by making some adjustment with regard to depreciation. That is, we arrive NNP by deducting the value of depreciation from Gross Domestic Product.

NNP = GNP (-) Depreciation

Gross Domestic Product (GDP):-

Gross Domestic Product is the total value of output (goods and services) produced by the factor of production within the geographical boundaries of the country.

Percapita Income (PCI):-

Percapita Income is an indicator to show the living standard of people in a country.

It is obtained by dividing the National Income by the population of a country.

Percapita Income = National Income/Population

2. Explain the need for the study of National Income.

Need for the study of National Income:-

  • To measure the size of the economy and economic performance.
  • To measure the production of goods and services .
  • To trace the trend of the economic growth of our country in relation other countries.
  • To know the contribution of primary, secondary and tertiary sector in the National Income.
  • To help Government, to formulate development plans and policies to increase economic growth.

3. Explain the methods of calculating National Income.

Method of calculating National Income:-

Product method:-

In this method the total value of all goods and services produced in a country is taken into account.

Income method:-

In this method, the income and payments received by all the people in the country are calculated.

Expenditure method:-

In this method we add up the expenditure of all people on consumer goods, investment and saving.

4 Write about the Functions of Modern Welfare State.

Functions of Modern welfare state:-

Protective functions:-

Economic development can be achieved only if there is peace in the state.

Government is to maintain law and order.

Protecting the people from external aggression and internal disorder.

The Administrative functions:-

The three important wings of the state are legislature, Executive and Judiciary.

Social Security functions:-

The government undertakes social security measures by offering relief to the poor, sick and the unemployed.

Economic functions:-

The government takes various measures to improve agriculture and develop trade and industry.

10th Indian Economy

EUROPEAN UNION

I. CHOOSE THE CORRECT ANSWER:

1. European Union traces its origin from the ECSC

2. EURATOM was established by the Treaty of Rome

3. The council of the European Union is sometimes referred to as the Council of Ministers

4. The first permanent President of the European Council is Herman Van Rampay

5. The name of the Single European Currency Euro

6. Euro zones monetary policy is governed by European Central Bank

7. The EU has established a strong relationship with the UNO

II. MATCH THE FOLLOWING:

1. Merger Treaty  1967
2. EURO  2002
3. Robert Schuman  French foreign minister
4. Jean Monnet  French Politician
5. EU budget  Court of Auditors

III. ANSWER THE FOLLOWING IN BRIEF:

1. Mention the initial member countries of the EU.

The initial member countries of the EU are Belgium, France, Italy, Luxemburg, Netherlands and West Germany.

2. What are the principal objectives of the EU?

The principal objectives of the EU

  • To establish European citizenship,
  • To promote social progress,
  • To ensure civil rights,
  • To promote security and ensure justice.

3. What are the organs of the EU?

The organs of the EU

  • European Parliament
  • Council of the European Union
  • European Commission
  • Court of Justice
  • Court of Auditors

4. Write a brief note on the European Parliament.

Note on the European Parliament

  • It is the legislative body of the European Union.
  • Its members are elected directly by the citizens of the member countries.
  • It currently consists of 736 members elected for five years term.

5. Mention the main functions of the Court of Justice.

The main functions of the Court of Justice

  • It is located in Luxemburg. It has fifteen judges.
  • It determines treaties implemented accordance with Union law.
  • Its judgments and EU law as a whole are binding on all member states.

6. What is the significance of the EURO?

The significance of the EURO

  • The Euro is the name of the single European currency that was put into circulation on January 1, 2002.
  • The symbol of the Euro is €.
  • Euro eliminated the foreign exchange hurdles and promotes free trade policy.

IV. Headings:

1. ORGANS OF THE EU

[a] Which is the Legislative body of the EU?

[b] What is the function of the European Commission?

[c] Where is the seat of the Court of Justice?

[d] Who is responsible for the foreign exchange operation?

2. ACHIEVEMENTS OF THE EU

[a] What is the symbol of the Euro?

The symbol of the Euro is €.

[b] What did the Euro Eliminated?

Euro eliminated the foreign exchange hurdles and promotes free trade policy.

[c] How many members are there in the EU at present?

28.

[d] Who allocates funds to European research projects?

V. Detail:

1. What are the achievements of the European Union?

Achievements of the EU:-

The EU has developed a single market through a standardized systems.

Single Market:-

It ensures the free movement of people, goods, and services.

Common Foreign and security policy:-

EU enacts treaties in justice and home affairs with countries.

The representation of EU at the world Trade organization, G-8, G-20 is maintained.

Single currency:-

European currency the Euro was put into circulation on January, 2002. The symbol of the Euro is €.

Euro eliminated foreign exchange hurdles promotes free trade policy.

Enlargement of EU:-

Enlargement of EU from the original six to the present day 27.

Scientific Research:-

The independent European Research Council allocates funds to European or national research projects stimulate research.

9th Indian Economy

EQUILIBRIUM PRICE

I.CHOOSE THE CORRECT ANSWER:

1. Equilibrium price equalizes demand and supply.

2. Supply is constant in very short period.

II.WRITE A SHORT NOTE:

1. Equilibrium price.

There is only one price at which the preferences of seller and buyer meet together.

At a particular price, the quantity demanded and a quantity supplied will become equal.

At this price quantity bought and quantity sold will be equal.

2. Short periods

During the short period, supply can be altered to some extent only.

Supply cannot be fully altered to the demand changes.

Raising demand increases the price lightly and a falling demand decreases the price slightly.

IV.WRITE IN A PARAGRAPH:

1. How is the equilibrium price determine?

  • It is clear from the table given below that demand decreases and supply increases when the price rises.
  • At this price the quantity bought (demand) and the quantity sold ( supply) will be equal.
  • This price equalizes the demand and supply
Price(in Rs) Demand(in kilos) Supply(in kilos)
20 5 1
40 4 2
60 3 3
80 2 4
100 1 5
  • When the price of mangoes is Rs.20 per kg, demand is 5 kg and the supply is 1 kg.
  • When the price raises to Rs 40, 60, 80, 100 and the demand decreases to 4, 3, 2, 1 kg and the supply raises to 2, 3, 4, 5 kg.
  • At a particular price the demand and supply are equal that is 3 kg.
  • This price is called equilibrium price and the quantity is called equilibrium quantity.
9th Indian Economy

TAMILNADU – MANUFACTURING INDUSTRIES

I.CHOOSE THE CORRECT ANSWER:

1. Tamilnadu newsprint paper limited (TNPL) is public sector industry in Tamilnadu.

2.The by-product Bagasse is used as a raw material for paper industry.

3.SPIC is the largest producer of fertilizers in India.

4.Cottage industry is one where in very little investment is involved.

5.Kancheepuram silk in its quality and is known for its traditional value all over the world.

II.MATCH THE FOLLOWING:

1. Chennai  Detroit of southern asia
2. Sivakasi  Little Japan
3. Perambur  Integral coach factory
4 .Karur  Textile capital of Tamilnadu
5. Coimbatore  The Manchester of south India

IV.ANSWER IN BRIEF:

1. How are industries classified?

Industries are classified on the basis of

a) Raw materials

b) Ownership

c) Capital involved and

d) Product

2. What are the factors determining the location of industries in Tamil Nadu?

  1. Raw materials
  2. Energy
  3. Capital
  4. Labour
  5. Transport and
  6. Market

3. Name the products and by-products of sugar industry?

Jaggery, kandasari and sugar are the products from the sugar industry.

4. List down the raw materials for paper industry?

The by-product bagasse is used as a raw material for paper industry.

5. What do you mean by consumer goods?

Consumer goods are those goods, which reach the consumers straight from the production unit. All perishable goods like food products and dairy products are examples of consumer goods.

6. Write a short note on Cottage Industry?

Cottage Industry is one wherein very little investment is involved. Locally available raw materials are used to produce the handicrafts. Volume of production and cost of production are low.

7. Give reasons for the widespread distribution of textile industry in Tamil Nadu.

Tropical Climate, availability of raw materials, demand for cotton in market, power supply from numerous power projects and abundant cheap labour are the reasons for the widespread distribution of textile industry in Tamil Nadu.

8. Distinguish between factory and industry.

FACTORY:

Single manufacturing unit is termed as factory.

INDUSTRY:

Multiple units of same kind which are spread over a large area are termed as industry.

9. Distinguish between agro based industry and mineral based industry.

AGRO BASED INDUSTRY:

Industry using agricultural products for manufacturing is termed as agro based industry.

MINERAL BASED INDUSTRY:

Industry using mineral for producing is called mineral based industry.

10.Distinguish between vegetable tanning and mineral tanning.

VEGETABLE TANNING:

If tanning is done by vegetative matter is known as vegetable tanning process.

MINERAL TANNING:

If the tanning is done with chemicals like chromium and fatty matter, it is known as mineral tanning process.

IV.ANSWER IN PARAGRAPH:

1. Describe the classification of industry based on ownership.

Private industry is one which owned by individual or a group of people. Ex: TVS Motors.

All government owned industry come under the public sector

Ex: TNPL

Co-operative sector is one which owned by a group of cooperative members who supply the raw materials for that industries and factories in Tamil Nadu.

When an industry is functioning under the partnership of two organizations it is said to be Joint Sector.

2. Give an account for the distribution of textile industry in Tamil Nadu.

Tamil Nadu contributes nearly 25% of India’s share in the export of cotton and fabrics.

Tropical climate, availability of raw materials, demand of cotton in market, power supply from numerous power projects and abundance cheap laborers are favorable factors of widespread distribution of textile industry in Tamil Nadu. Coimbatore, pollachi, Thiruppur, Karamadai, Erode etc. are the important centres for textile industry.

Maximum units are concentrated in and around Coimbatore region. For this reason it is known as Manchester of south India.

3. Write about the paper industry in Tamil Nadu.

Coimbatore, Vellore, Kanchipuram, Pugalur etc. are centers of paper industry in Tamil Nadu.

Tamil Nadu Newsprint and Paper Limited(TNPL) was set up with aid of World Bank in 1979 in Kakithapuram near Pugalur in Karur district. It is largest producers of bagasse based paper in the world with the annual consumption of bagasse to one million tonnes per annum.

It produce paper Newsprint, papers for telephone directory, computers, offset printing papers are also produced by TNPL.

4. Give an account of sugar industry in Tamil Nadu.

Tamil Nadu produces about 10% of total sugar in India.

Suitable climate and soil for high yielding varieties continuous irrigation facilities goods transport marketing facilities and regularized and co-operative sector are favorable factors of widespread sugar mills in the state.

A majority of distribution of sugar units in Tamil Nadu functioning under the co-operative sector.

At present Tamil Nadu has 42 sugar mills, out of which 16 are under the co-operative sectors, three owned by public sector, 23 are private mills.

Jaggery, kandasari and sugar the products from the sugar industry.

9th Indian Economy

DEMAND AND SUPPLY

I. CHOOSE THE CORRECT ANSWER:

1. There exists an indirect relationship between price and demand

2. Law of demand is only applicable to very low priced goods

3. One of the determinants of demand is taste and preference.

II. WRITE SHORT NOTE ON :

1. Alfred marshal’s law of demand:

The greater the amount to be sold the smaller must be the price at which it is offered.

In other words, the amount demanded increases with a fall in price and diminishes with a rise in price.

2. Law of supply:

As the price of the commodity rises, the quantity supplied is extended and as the price of the

commodity falls the quantity supplied is contracted. This is called the law of supply.

3. List out the determinants of supply:

  • The determinants of supply are
  • Production technology
  • Prices of factors
  • Prices of other products
  • Number of producers
  • Future price expectation
  • Taxes and subsidies
  • Non economic factors like natural calamities, war, epidemics etc.

III. WRITE IN A PARAGRAPH:

1. With the help of table explain.

The following demand schedule shows the inverse or indirect relationship between price and demand.

PRICE (in Rs. ) DEMAND (in kg.)
25 01
20 02
15 03
10 04
5 05

The above demand schedule shows the different quantities demanded at different prices by an individual consumer.

When the price of the mangoes is Rs. 25 per kg the consumer demands 1 kg.

When the price falls from Rs. 25 to Rs. 20, Rs. 15, Rs. 10 and Rs. 5, the consumer increases his demand from 1 to 2, 3, 4 and 5 kgs respectively.

This shows that with a fall in price the demand increases.

It indicates the indirect relationship between price and demand.

8th Indian Economy

MONEY, SAVINGS AND INVESTMENT

I. Choose the best answer

1. Money is what it does is defined by

a) Crowther b) walker c) Robertson

2. The purchasing power of money depends upon the

a) Price level b) demand level c) supply level

3. _________ is used as a standard for future payment

a) cheque b) Money c) Credit card

II. Fill in the blanks:

1. ___________ is one of the greatest inversions of money.

2. The word “money” is derived from the Latin word___________.

3. The most important function of money is that it acts as ___________.

4. Money is a convenient from of storing one’s ________ .

5. ____________ is inevitable for capital formation and economic growth.

6. ____________ is the medium of exchange.

7. The direct exchange of goods for goods is known as _________ system.

8. Moneta is the surname of Roman Goddess_____________.

9. Moneta is a __________ word.

10. The purchasing power of money depends upon the __________.

11. The rupee is a blend of the Devangiri ___________ and Roman ____________.

12. ___________ is nothing but value expressed in terms of money.

13. The portion of income not spent on consumption is called__________.

14. The addition made to the existing production and capacities is called __________.

III. Match the following

1. Moneta – old system of exchange of goods

2. Store of value – fundamental invention

3. Savings – Money

4. Money – function of money

5. Barter system – contributes to economic growth

IV. Brief answer

1. Money serves as a store of wealth explain.

i) Money is a convenient form of storing one’s wealth.

ii) Money can be easily converted into other marketable assets and machinery, industries and gold.

2. Write briefly about the importance of money

i) Money plays an important role in the economic development of a country.

ii) Modern economy cannot function smoothly without money.

iii) The importance of money can be realized only in its absence.

iv) Money is only a means and not an end in itself.

3. Explain the barter system

i) The barter system is exchange of goods for goods.

ii) It is the system of trading without the use of money.

iii) But it had many difficulties and in convenience. These difficulties led to the invention of money.

4. Explain the standard and deferred payment.

i) Money is used for standard and deferred payment.

ii) Business in modern times is based on “Credit” to a large extent.

iii) In credit, payments are made at a future date, money is the standard.

iv) If the credit transactions were to be carried on the basis of commodities, it would lead to difficulties. It will affect trade.

5. Define savings and Investments:

Savings

The portions of income not spent on consumption is called investment.

Investments

Investment include fixed equipments, machinery, building, raw material, replacement due to depreciation etc.,

V. Answer in detail

1) Describe the functions of money

Money performs many function in the modern economy.

The most important functions of money etc.,

a) medium of exchange

b) measure of value

c) store of value

d) standarred of deferred payments

Medium of exchange

i) The most important function of money is that it acts as medium of exchange.

ii) Money is accepted freely in exchange for all other goods.

Measure of value

i) It is a unit of account and a standard of common measurement

ii) is nothing but value expressed in terms of money.

iii) We use money for measuring value of goods. It makes economic calculation easy.

Store of value

i) Money is a convenient form of storing one’s wealth.

ii) Money also serves an excellent store of wealth as it can be easily converted into other marketable assets such as land, machinery, industries and gold.

Standard of deferred payments

i) Money is used for standard for future payments.

ii) Business in modern lines is based on credit to a large extent.

iii) In credit, payments are made at a future date, money is the standard.

iv) if credit transactions were to be carried on the basis of commodities, it would lead to difficulties. It will affect trade.

2. Discuss significance of money?

i) Every branch of economic activity in a money economy is different from what it was in baster economy.

ii) Money has influenced and facilitated from what it was in the buster economy.

iii) Money plays an important role in the field of consumption, production, exchange, distribution and public finance.

iv) Money plays an important role in the economic government of a country.

v) Modern economy cannot function smoothly without money.

vi) The importance of money can be realized only in its absence.

3. Write in detail about savings and investment savings?

The portion of income not spent on consumption is called savings.

Investment

i) The addition made to the existing production capacities is called investment.

ii) Investment include equipments, machinery, building, raw material, replacement due to depreciation etc.,

Savings and Investment are related to another

i) Savings is inevitable for capital formation and economic growth.

ii) Savings is directly connected with investment.

iii) Savings and investment are basic economic activities in an economy.

iv) Saving and investment increase the amount on capital, which contributes the economic growth.

Savings and investments differ from one another

i) Savings and investment are in the hands of two distinct groups of people

ii) Savings is done by the consumer

iii) Investment is the functions of entrepreneurial class.

iv) The motives for saving and investment are also different from each other.

7th Indian Economy

FACTORS OF PRODUCTION

I. Choose the correct answer:-

1. Economics is a social science

2. There are 4 factors of production.

3. Labour cannot be separated from labourer.

4. In general capital means money.

5. In organizer will always make innovations.

6. The reward paid to capital is interest.

7. Investment in education is called human capital.

8. The reward paid to labour as a factor production is wages.

9. In united states more than 80% of labour force is tertiary workers.

10. Agriculture is classified under primary sector.

II. Fill in the blanks:-

1.Production means creation of utility.

2.Utility means wants satisfying power.

3.Land and labour are called original factor.

4. Capital and organization are called Derived factors.

5.Land is a free gift of nature.

6.The concept of division of labour was introduced by Adam Smith.

7.An enquiry into the nature and causes of wealth of nations was written by Adam Smith.

III.Match the following:-

1. Land — bears risk

2. Banking service — rent

3. Organizer — buildings

4. Labour — tertiary sector

5. Physical capital — perishable.

IV. Answer in brief:-

1. State Lionel Robbins definition of economics.

v Lionel Robbins has defined economics as follows economics is the science which studies human behavior as a relationship between ends and scars means which have alternative uses.

2. What are the three sectors of the economy?

Different sectors:

1.Primary sector (raw materials)

2.Secondary sectors (manufacturing)

3.Feriary sector (services)

3. What is meant by Divisions of labour?

Divisions of labour means dividing the process of productions into several component processes and assigning each component in the hands of a labour or a set of labourers who are or specialists in that particular process.

4. What are forms of capital?

1. Physical capital:

Investment on all manmade physical asserts life buildings and machines are called physical capital.

2. Money capital:

Investment made in the form of many or monetary instrument is called money capital.

3. Human capital:

Investment in education, training, healthcare etc., is called human capital.

5. List out the factors of productions and their respective rewards.

Land

Labour

Capital

Organization

6th Indian Economy

INTRODUCTION ON ECONOMICS

I. Answers the following:

1. What are the basic needs of man?

The basic needs of the man’s are food, cloth and shelter.

2. What are the requirements for food production?

Fertile land with irrigation facilities fertilizers and pesticides, quality seed, tools and implements and financial assistance are the requirement for the food production.

3. What are the three divisions of economics?

Production, consumption and distribution are the tree basic division of economics.

4. Why is it necessary to study economics?

Those who study economics become Economics scholar  To prepare central and state government budget it is necessary to have knowledge of economics.

II. Fill in the blanks:

1. To fulfill his needs man started to ———————–

Manufacture garments, footwear etc.

2. When there is a surplus of commodities there is a———– in price

Fall

3. ————of our country received the Nobel Prize for Economics.

Amarthya sen

4. When there is deficit of commodities in the market there is ————-in price

Raise

III. Match the following:

1. Economy of our country – National income.

2. People who buy and sell goods – Traders.

3. To attain self sufficiency – Knowledge of economics.

4. Food, cloth and shelter – Basic needs.