Important Questions CBSE Class 10th : Social Science Year 2009 (Solved)
(Economic-Development-: An Introduction)

Question .1. What is economic development?
Answer : Economic development means that the rate of production must be faster than the rate of increase in population. In other words we can say that it makes people better off by increasing their command over goods and services and by increasing the choices open to them.

Question .2. Define national income?
Answer : National income is defined as the total value of all the goods and services produced within a country together with income coming from abroad.

Question .3. What is per capita income?
Answer : Per capita income of a nation is national income divided by the total population.

Question .4. What is economic activity?
Answer : All the activities which gives an income in return is called economic activity. Ex. people working in factories, farms, banks, hospitals, schools etc and earning money.

Question .5. What is non-economic activity?
Answer : All the activities which do not give any income in return are called non-economic activities. Ex. social service, going to temple etc.

Question .6. What is economy?
Answer : Economy is the sum total of all the economic activities of a society. In other words it is the system of earning livelihood to satisfy human wants.

Question .7. What do you mean by developed country?
Answer : The country which have a very wide industrial sector based on modern technology are developed country. The people there have high standard of living and better quality of life. Most of the people are employed in non-agricultural sector.

Question .8. What do you mean by developing country?
Answer : The country which have a very small industrial sector with little access to modern technology. Most of the people are engaged in agriculture and related traditional activities. The standard of living is very low and quality of life is not better.

Question .9. Define the term enterprise?
Answer : When a person or a group of persons are engaged in the production or distribution of goods or services meant mainly for the purpose of sale is called enterprise.

Question .10. Explain the meaning of private sector with suitable examples?
Answer : The enterprise owned and run by individuals or a group of individuals to make profit is known as private sector. Examples – (i) Bajaj Auto
(ii) Maruti Udyog Limited.

Question .11. Explain the meaning of public sector with suitable examples.
Answer : The enterprise owned and run by the government is called public sector. They enable the government to have control over the economy for the benefit of the people in general.
Examples – (i) Indian Oil Corporation
(ii) D. T. C.

Question .12. Explain the meaning of joint sector enterprises with suitable examples?
Answer : Joint sector enterprises are enterprises run jointly by the government and the individuals on partner basis.
Examples – (i) Power Trading Corporation
(ii) Reliance Petrochemical Limited.

Question .13. What do you mean by economic decision making?
Answer : Decision making is an activity of making choices in different situations by maintaining the level of maximum satisfaction. 

Question .14. Define the term market.
Answer : Decision making is an activity of making choices in different situations by maintaining the level of maximum satisfaction.

Question .15. What do you mean by demand?
Answer : Demand for a good is defined as an amount of commodity for which people are willing to pay and are ready to buy. Price and demand are related inversely

Question .16. What do you mean by supply?
Answer : Demand for a good is defined as an amount of commodity for which people are willing to pay and are ready to buy. Price and demand are related inversely.

Question .17. State the situation at which price of a commodity is determined?
Answer : Price is determined at the level where demand and supply are equal.

Question .18. State any two factors of production?
Answer :(i) Capital
(ii) Labour

Question .19. State the three sectors of enterprises on the basis of ownership?
Answer :(i) Private sector
(ii) Public sector
(iii) Joint sector.

Question .20. What do you mean by production?
Answer : Production is defined as a process of creating goods and services or increasing the value of commodities already produced.

Question .21. What does consumption mean?
Answer : Consumption means using up of goods and services for direct satisfaction of human wants.

Question .22. What are primary activities of any economy?
Answer :The activities associated directly with the gift of nature [land, water] such as farming, hunting, fishing , mining are called primary activities.

Question .23. Explain the features of Indian Economy?
Answer :The feature of Indian Economy are:-
(i) Underutilization of resources – India is endowed with rich natural resources and huge manpower but due to lack of capital and knowledge technology, the resources can’t be exploited and utilized.
(ii) Agriculture is the main occupation – Majority of population depends on agriculture due to underdeveloped manufacturing sector and service sector.
(iii) Low rate of capital formation – Capital formation in the form of roads, dams, bridges, machinery, tools, equipment etc. depends upon the savings of the country. But savings depends upon the national income which is very low in India.
(iv) Population pressure – Due to rapidly growing population in India the comparative national product is very low. This restricts the economic development by creating problems of unemployment and underemployment.
(v) Technological backwardness – Due to lack in technology production is carried out using intensive labour. Less of capital like machinery, tools and equipments is used as compared to labour which hampers productive capacity of the country.
(vi) Unfavourable social and religious condition – In India there are social and cultural institutions like caste system, joint family system, laws of inheritance and succession, child marriage etc. These institutions are serious hindrance to our economic growth. These institutions lower the incentive to work, kill initiative, check mobility of labour and encourage the birth rate.

Question .24. Distinguish between ‘less developed country’ and ‘developed country’?
Answer :

Question .25. Distinguish between ‘Public sector industries’ and ‘Private sector industries’?
Answer :

Question .26. Distinguish between economic and non-economic activities?
Answer :