Subject: Economic Applications

Class: X

There will be one theory paper of two hours duration of 100 marks and Internal Assessment of 100 marks. The paper will consist of Part I and Part II.

Part I (compulsory) will contain short answer questions on the entire syllabus.

Part II will consist of questions that will require detailed answers. There will be a choice of questions.

THEORY – 100 Marks

1. Demand And Supply: Basic Concepts Demand - Meaning and Types of Demand Supply - Meaning Law of demand and supply: demand and supply schedule and curve (both individual and market); movement and shift of the demand and supply curve; determinants of demand and supply; exceptions to the law of demand. Meaning of Demand and Supply. Types of Demand (Joint Demand, Derived Demand and Composite Demand). A basic understanding of the law of demand and supply in which demand and supply schedules are to be used to explain the demand and supply curves. The individual demand and supply curves must be distinguished from market demand and supply curves. Determinants of demand and supply are to be specified. Exceptions to the law of demand are to be discussed. Elasticity of demand and elasticity of supply Meaning, types; percentage, method of measuring elasticity of demand and elasticity of supply, Factors affecting elasticity of demand and elasticity of supply. The concept of price elasticity of demand and supply are to be explained with percentage method. The factors affecting the elasticity of demand and supply are to be specified. (Simple numericals should be taught)

2. Factors of Production: Basic Concepts Factors of production- Land, Labour, Capital and Entrepreneur. Land- meaning and characteristics, functions and its importance, factors affecting productivity of  land. Destruction of ecosystem due to changing patterns of land use, migration, industrialization, shifting cultivation, dwelling units, mining, urbanization, construction of dams, etc. Labour- meaning and characteristics. Division of
labour - meaning, types, advantages and disadvantages. Efficiency of labour- meaning, reasons for low efficiency of Indian labour. Capital - meaning, types and characteristics. Capital formation - meaning, factors affecting
capital formation. Entrepreneur - meaning, functions and role of entrepreneurs in economic development.

3. Alternative Market Structures: Basic Concepts Nature and structure of markets- Perfectly competitive market, Monopoly market, Monopolistically competitive market, concept of product differentiation, Monopsony market. The main features of the following market structures are to be discussed in the context of present business scenario– Perfectly competitive market, Monopoly market, Monopolistically competitive market, Monopsony market (meaning to be highlighted).

4. The State and Economic Development The role of State in promoting development; the instruments of State intervention- fiscal policy and monetary policy; The Public sector enterprises - their role and problems; the issue of privatization of public enterprises. A basic understanding of the role of the State in the economy needs to be highlighted in the context of Indian economy. The meaning of fiscal policy. Direct and Indirect Taxes (meaning, merits and demerits), Types of Taxes (progressive, regressive, proportional and degressive- meaning with examples). Monetary Policy – meaning only. Public sector - its role and problems. Reasons for Privatization.

5. Money and Banking: Basic Concepts Money: meaning, functions of Money; Inflation - meaning, effects of inflation on the functioning of the economy (in brief). Banking: Commercial Banks - functions; Central Bank - functions; quantitative and qualitative credit control measures adopted by RBI. A basic understanding of the concepts of money, its functions. Meaning and types of inflation to be discussed (Creeping, Walking, Running and Hyper-inflation). The impact of inflation on various economic entities such as debtors and creditors, fixed income groups and producers are to be explained very briefly. Functions of commercial banks and functions of RBI - qualitative and quantitative controls used by the RBI as part of its credit control measures should be explained.

NOTE: IT IS SUGGESTED THAT CASE STUDIES MAY BE DISCUSSED ON THE FOLLOWING TOPICS-

• Factors of Production
• Banking
• Inflation

INTERNAL ASSESSMENT – 100 Marks

Candidates will be required to do a minimum of four assignments during the year, as assigned by the teacher.

Suggested list of assignments:

1. Take a fast moving consumer good (FMCG) like washing machine detergent. Analyze the factors that determine the demand of this product. Present your findings in form of a class presentation.

2. Develop a hypothetical table of information for coffee that shows quantity demanded at various prices and supply of coffee at these prices. Draw a demand curve and supply curve and show an equilibrium price at which market is cleared of its supplies.

3. Make a list of products for which you think demand is price inelastic and price elastic. Specify the reasons you may think relevant for your analysis.

4. Take a case of public enterprise which is about to be privatized or has been recently privatized. Analyze the pros and cons of such an exercise undertaken by the government. (The case of VSNL or BALCO can be taken up).

5. Take a case of a nationalized bank – visit any one of its branches in your city. Analyze the main functions of this bank’s branch. Make a presentation to this effect.

6. Recently rates of interests have been reduced on all the saving instruments. Carry out a survey of 30 people in your area as to what is their reaction to this cut. The sample may consist of salaried people, business people and professionals.

7. Take a case of five FMCGs – fast moving consumer goods - bathing soaps, toothpastes, facial creams, shampoos, ball pens. Analyze as to how the market for these products is characterized by product differentiation.

8. Take the case of a company and analyze the production process in which all the factors that you studied in your class, are used by the company to produce a product.

EVALUATION

The project work is to be evaluated by the subject teacher and by an External Examiner. The External Examiner shall be nominated by the Head of the school and may be a teacher from the faculty, but not teaching the subject in the relevant section/class. For example, a teacher of Economics of Class XI may be deputed to be the External Examiner for Class X Economic Applications project work. The Internal Examiner and the External Examiner will assess the candidate’s work independently.

Award of marks (100 marks)

Subject Teacher (Internal Examiner) : 50 marks

External Examiner : 50 marks

The total marks obtained out of 100 are to be sent to the Council by the Head of the School.

The Head of the School will be responsible for the entry of marks on the mark sheets provided by the Council.

Courtesy: cisce.org