SST and History Notes XI- XII

ECONOMICS (X)-LESSON-4

GLOBALISATION AND THE INDIAN ECONOMY

(QUESTION ANSWERS)

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(NCERT QUESTION ANSWERS)

1. What do you understand by globalisation? Explain in your own words.

Answer: Globalisation is defined as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). Increase in foreign trade, migration of people from one country to another, the flow of capital finance from one country to another and private and public investments from foreign countries all together contribute to globalisation.

2. What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

Answer: The main reason for putting barriers to foreign trade and foreign investment by the Indian government was to protect the interest earned by producers and small industrialists of our country from foreign competition.

But later it was accepted by the government that foreign competition would encourage Indian industrialists to improve the quality of their products and removing these barriers would increase trade and quality of products produced in the country.

ECO (X)- LESSON-3

MONEY AND CREDIT

QUESTION ANSWERS

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NCERT EXERCISE

1. In situations with high risks, credit might create further problems for the borrower. Explain.

Answer: In situations with high risks, credit might create further problems for the borrower. Credit involves a certain amount of loan that is taken by a borrower from a lender at a high-interest rate. In case there is a failure, and the borrower faces loss, then he further falls in the trap of credit. This is known as a debt trap. The borrower has to repay the credit along with interest applied by the lender, and he further falls into the trap of credit, increasing the problems for the borrower. The borrower also has to sell a part of his or her land to repay the loan.

2. How does money solve the problem of double coincidence of wants? Explain with an example of your own.

Answer: ‘Double coincidence of wants’ is when whatever a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Money solved the problem of double coincidence of wants because after the introduction of money, people could use money as an intermediate to buy or sell things and no specific buyer or seller was required for interchanging of products. For example, a trader wishes to sell 10 sacks full of rice and expects to get it in exchange for five sacks of cereal. To find a suitable buyer to sell the sacks of rice in exchange for cereals would be very tough. However, the money will solve this problem, and the trader can sell the sacks of rice to someone who needs it and in return, buy cereals from the money he gets from the buyer of rice.

3. How do banks mediate between those who have surplus money and those who need money?

Answer: Banks mediate between those who have surplus funds (the depositors) and those who are in need of funds (the borrowers) by lending money to people who are in need. People can open accounts in banks and banks make use of that money to fulfil the loan requirements of the people. A higher interest rate is charged for the borrower and that profit is given to the depositor as interest for offering deposits.

ECONOMICS (X)-LESSON-2

SECTORS OF INDIAN ECONOMY

(QUESTION ANSWERS)

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NCERT EXERCISE

1. Fill in the blanks using the correct option given in the bracket:

a.     Employment in the service sector _________ increased to the same extent as production. (has / has not)

b.    Workers in the _________ sector do not produce goods. (tertiary / agricultural)

c.     Most of the workers in the _________ sector enjoy job security. (organised / unorganised)

d.    A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

e.     Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]

f.      The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

Answer a: has not
Answer b: tertiary
Answer c: organised
Answer d: large
Answer e: natural and manufactured
Answer f: interdependent
2. Choose the most appropriate answer.
a. The sectors are classified into public and private sector on the basis of:

1.    employment conditions

2.    the nature of economic activity

3.    ownership of enterprises

4.    number of workers employed in the enterprise

Answer: 3. ownership of enterprises
b. Production of a commodity, mostly through the natural process, is an activity in _________ sector.

1.    primary

2.    secondary

3.    tertiary

4.    information technology

Answer: 1. primary
c. GDP is the total value of _________ produced during a particular year.

1.    all goods and services

2.    all final goods and services

3.    all intermediate goods and services

4.    all intermediate and final goods and services

Answer: 2. all final goods and services

ECONOMICS (X)-LESSON-1

DEVELOPMENT

(QUESTION ANSWERS)

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(NCERT EXERCISE QUESTION ANSWERS)

1. Development of a country can generally be determined by

a.     its per capita income

b.    its average literacy level

c.     health status of its people

d.    all the above

Answer: d. all the above

2. Which of the following neighbouring countries has better performance in terms of human development than India?

a.     Bangladesh

b.    Sri Lanka

c.     Nepal

d.    Pakistan

Answer: b. Sri Lanka

3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family?

a.     Rs 7500

b.    Rs 3000

c.     Rs 2000

d.    Rs 6000

Answer: d. Rs 6000

(4000+7000+3000+x) ÷ 4 = 5000

14000+x = 5000 × 4

x = 20000-14000

x = 6000