SST ( Economics ) for Class 10 ( Understanding Economic development ) Very Short Questions answer

Q1: Who are Producers?
Ans: People who make goods and provide services are called producers. As producers of goods and services, we could be working in any of the sectors such as agriculture, industry or services.

Q2: Who are Consumers?
Ans: Consumers participate in the market when they purchase goods and services that they need. These are final goods that people as consumers use.

Q3: What is the need of rules and regulations in the market?
Ans: Rules and regulations are needed to protect workers in unorganised sector or protect people from high interest rates charged by moneylenders in the informal sector or for protecting a consumer in the market.

Q4: Why do individual consumers often find themselves in a weak position?
Ans: Whenever there is a complaint regarding a good or service that they had bought, the seller tries to shift all the responsibility on to the buyer.

Q5: How can large companies with huge wealth and power manipulate the market?
Ans: At times, false information is given through media, and other sources to attract consumers. Such big companies with huge wealth and power can manipulate the market.

Q6: Give an example to prove how big companies can manipulate market with wealth and power.
Ans: A long battle had to be fought with court to make cigarette–manufacturing companies accept that their product could cause cancer.

Q7: Why did consumer movement arise in India?
Ans: Consumer movement arose out of the dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.

Q8: Who does the standardisation of products at National level?
Ans: Standardisation of products is done at the national level by the Bureau of Indian Standards Act, 1986. ISI, AGMARK, Hallmark are well known, certification marks for national standardisation.

Q9: Name two certification marks for international standardisation.
Ans: Standardisation of product is done at the international level. ISO 9000 and ISO 14000 are the well-known certification marks for international standardisation.

Q10: Which logo will you like to see on the electric heater to be sure of its quality?
OR
Which quality logo would you like to see on the electric goods to be sure about their quality? [CBSE (F) 2016], [CBSE (F) 2017]
Ans: ISI.

Q11: Initially what was done by consumers to protect themselves from the exploitation?
Ans: Initially when a consumer was not happy with a particular brand, product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop.

Q12: Why did the consumer movement begin as a social force in India?
Ans: In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

Q13: What was the status of consumer movement in 1960s?
Ans: Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to consumer movement in an organised form in 1960s.

Q14: What efforts were done in 1970s by consumer groups?
Ans: Till 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in the road passenger transport.

Q15: What is COPRA?
Ans: A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act, 1986, popularly known as COPRA to protect consumer’s interests.

Q16: When and why was ‘Consumer International’ adopted?
Ans: In 1985, United Nations adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt measures to protect consumers’ advocacy groups to press their governments to do so.

Q17: What is the status of Consumer International today?
Ans: Today, Consumer International has become an umbrella body of over 250 member organisations from in 120 countries.

Q18: Give any one example of consumer’s ‘right to choose.’ [CBSE Delhi 2017]
Ans: If a person wants to buy toothpaste and the shop owner says that she can sell the toothpaste only if the customer buys toothbrush. If you are not interested in buying the brush, you have right to deny.

Q19: Why should Right to Safety be practised by the consumers?
Ans: While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.

Q20: Why do producers need to strictly follow the required safety rules and regulations?
Ans: There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality.

Q1: What is Globalisation? [CBSE (F) 2017]
Ans: Globalisation is the process of rapid integration or interconnection between countries.

Q2: How are Indian markets transformed with Globalisation?
Ans: The latest models of digital cameras, mobile phones and televisions made by the leading manufacturers of the world are within everyone’s reach. We would not have found such a wide variety of goods in Indian markets even two decades back. In a matter of years, our markets have been transformed.

Q3: What is an MNC?
Ans: A multinational company is a company that owns or controls production in more than one nation.

Q4: How are MNCs able to gain greater profits?
Ans: MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.

Q5: Which regions are favourable for MNCs to set up production?
Ans: MNCs set up production where it is close to the markets, where there is skilled and unskilled labour available at low costs and where the availability of other factors of production is assured.

Q6: What do you understand by the term ‘Investment’?
Ans: The money that is spent to buy assets such as land, buildings, machines and other equipment is called ‘Investment’ which would later fetch them profits.

Q7: What is the most common route for MNC’s investment?
Ans: The most common route for MNC’s investment is to buy up local companies and then expand the production. MNCs with huge wealth can do so quite easily.

Q8: How were Parakh foods purchased by an American MNC?
Ans: Cargill Foods, a very large American MNC, has taken over a smaller Indian company Parakh Foods. Parakh foods had five oil refineries, whose control has now shifted to Cargill, who is now the largest producer of edible oils.

Q9: Give examples of industries where production is carried out by a large number of small producers around the world.
Ans: Garments, footwear and sports items are examples of industries where production is carried out by a large number of small producers around the world.

Q10: How are MNCs interacting with local companies in spreading their production?
Ans: There are variety of ways—By setting up partnerships with local companies, by using the local companies for supplies and by closely competing with the local companies or buying them up.

Q11: What is the basic function of foreign trade? [CBSE (Comptt.) 2017]
Ans: Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.

Q12: Why are Chinese toys so popular in India?
Ans: Buyers in India now have the option of choosing between Indian and Chinese toys. Because of the cheaper prices and new designs, Chinese toys became more popular in the Indian markets.

Q13: Give one advantage to China and disadvantage to India with import of Chinese toys.
Ans: For Chinese toy makers, this provides an opportunity to expand business. Whereas Indian toy makers face losses, as their toys are selling much less.

Q14: How does foreign trade connect markets?
Ans: Choice of goods in the market rises. Prices of similar goods in the two markets tend to become equal. Producers in the two countries now closely compete against each other even though they are separated by thousands of miles. Foreign trade, thus, results in connecting the markets.

Q15: Explain the role of MNCs in globalisation.
Ans: MNCs are playing a major role in the globalisation process. More and more goods and services, investment and technology are moving between countries.

Q16: What is the contribution of improvement in transport technology to stimulate the era of globalisation?
Ans: For the past fifty years, there have been several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.

Q17: What is the contribution of information and communication technology in the era of globalisation?
Ans: In recent times, technology in the areas of telecommunication, computers, internet has been changing rapidly. Telecommunication facilities like telegraph, telephone, mobile, fax, etc., help to communicate in remote areas also.

Q18: If Indian Government puts a tax on import of toys, how would it affect the import of Chinese toys?
Ans: Those who wish to import these toys will have to pay tax on this. Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy makers will prosper in this situation.

Q19: What is a ‘trade barrier’?
Ans: Tax on imports by the Government is called ‘trade barrier’. It is called a barrier because some restrictions have been set up.

Q20: Why do Governments use trade barriers?
Ans: Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each should come into the country.

Q1. Why are transactions made in money?
Ans. A person holding money can easily exchange it for any commodity or service that he or she might want.

Q2. How is money beneficial in transactions?
Ans. Money is beneficial in transactions because it eliminates the need for double coincidence of wants. It acts as a medium of exchange.

Q3. What is ‘double coincidence of wants’?
Ans. What a person desires to sell is exactly what the other wishes to buy.

Q4. What is barter system?
Ans. When goods are directly exchanged for goods and there is no use of money, it is called barter system.

Q5. How does the use of money make it easier to exchange things? Give an example.
Ans. A person holding money can easily exchange it for any commodity or service that he or she might want.
Example: The shoe manufacturer can sell his shoes (in exchange for money) and then use the money to buy wheat, rather than looking to barter shoes for wheat.

Q6. Why can one not refuse a payment made in rupees in India?
Ans. One cannot refuse a payment made in rupees in India because it is accepted as a medium of exchange. The currency is authorized by the government of the country.

Q7. Highlight the inherent problem in double coincidence of wants.
Ans. The inherent problem in double coincidence of wants is that both parties have to agree to sell and buy each other’s commodities.

Q8. What was used as money in early ages in India?
Ans. In the very early ages, Indians used grains and cattle as money.

Q9. Which metals were used for making coins in India in later stages?
Ans. Gold, Copper, Silver coins were used in later stages for making coins in India.

Q10. What does modern form of money include?
Ans. Modern form of money includes currency—that is paper notes and coins.

Q11. Does modern currency have any use of its own?
Ans. Unlike the things that were used as money earlier, modern currency is not made of precious metal such as gold, silver and copper. And unlike grain and cattle, they are neither of everyday use. The modern currency is without any use of its own.

Q12. Why is modern currency accepted as a medium of exchange?
Ans. It is accepted as a medium of exchange because the currency is authorised by the government of the country.

Q13. In India, who is authorised to issue notes and currency?
Ans. In India, the Reserve Bank of India, which is the central bank of the country, issues currency notes on behalf of the central government.

Q14. What are ‘demand deposits’?
Ans. People deposit their money in the bank as it earns interest. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits.

Q15. What is a ‘cheque’?
Ans. A cheque is a piece of paper that directs the bank to pay a specified amount from the issuer’s account to the person named on the cheque.

Q16. What do the banks do with the deposits which they accept from the public?
Ans. (i) Banks keep only a small proportion of their deposits as cash with themselves.
(ii) Major portion of the money deposits are used to extend loans.

Q17. How do banks act as a mediator?
Ans. Banks mediate between those who have surplus funds (depositors) and those who are in need of these funds (the borrowers).

Q18. Why is it difficult for poor to get loan from Banks?
Ans. Absence of collateral is one of the major reasons which prevent the poor from getting bank loans.

Q19. What is the main source of income of the banks, if they forward the depositor’s money to the lender?
Ans. Banks charge a higher rate of interest on loans than what they offer on deposits. The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Q20. What is ‘credit’?
Ans. Credit (loan) refers to an agreement in which the lender supplies the borrowers with money, goods or services in return for the promise of future payment.

Q1: What are economic activities?
Ans: The activities which contribute to the flow of goods and services in an economy.

Q2: There are many activities that are undertaken by directly using natural resources. What are these activities known as?
Ans: Primary activities.

Q3: Give any two examples of primary activities.
Ans: (i) Animal rearing (ii) Lumbering

Q4: ‘Dairy is a primary activity’. Give reason.
Ans: In case of dairy we are dependent on the biological process of the animals and availability of fodder. The product i.e. milk is also a natural product.

Q5: By what other name the primary sector is known as?
Ans: Agriculture and related sector. ‘

Q6: What is secondary sector?
Ans: The secondary sector includes activities in which natural products are changed into other forms manually or through machines.

Q7: Give two examples of secondary activities.
Ans: (i) Manufacturing of car (ii) Manufacturing of chair.

Q8: What is tertiary sector?
Ans: The sector which provide support service to both primary and secondary sectors. For example banking, trade communication etc.

Q9: Why tertiary sector is also termed as service sector?
Ans: Tertiary sector is termed as service sector because tertiary sector provide support service to primary and secondary sectors.

Q10: What is GDP? [CBSE 2014]
Ans: It is the value of all final goods and services produced within a country during a particular year.

Q11: Which organisation in India undertakes the task of measuring GDP?
Ans: Central Government Ministry.

Q12: What are final goods?
Ans: Final goods are the goods which are ready for use. For example a pen.

Q13: What are intermediate goods?
Ans: These are the goods which are used up during the production process.

Q14: ‘While calculated Gross Domestic product the value of only final goods should be included’. Give reason.
Ans: Because the final goods already includes the value of all intermediate goods.

Q15: Which sector has shown the highest growth rate?
Ans: Tertiary sector.

Q16: Which sector is the largest employer?
Ans: Primary Sector.

Q17: What is Right to Work?
Ans: Under this Right all those who are ready to work at prevailing wages are given work by the government.

Q18: What is organised sector?
Ans: It is a sector which covers those enterprises or place of work where the terms of employment are regular and therefore people have regular work.

Q19: What is unorganised sector?
Ans: Any sector or industrial unit which is largely outside the control of the government.

Q20: There is a need for protection and support of the workers in the unorganised sector. Given two seasons.
Ans: (i) Workers of unorganised sector are not paid fair wages.
(ii) The working conditions are very poor.

Q1: What is development?
Ans: It is a comprehensive term that includes an increase in real per capita income, improvement in the living standard of people, reduction in poverty, etc.

Q2: Mention any two developmental goals of a landless rural laborer.
Ans: More days of work and better wages and Quality education for his children.

Q3: Mention any two developmental goals of a girl.
Ans: Gender equality and Girls empowerment.

Q4: What may be development for one may not be development for the other. It may even be destructive for others. Give one example.
Ans: The construction of a dam may be good for an industrialist as he will get more electricity but the construction of a dam submerges the land and disrupts the lives of people who are displaced.

Q5: Mention any two developmental goals of people other than income.
Ans: Equal treatment and Respect of others

Q6: Mention any two developmental goals of a rural woman.
Ans: Dignity in the household and A safe and secure environment.

Q7: What is National Development? 
Ans: National development is a comprehensive term that includes improvement in living standards. of the people, increase in per capita income, and provide social amenities like education, medical care, social services, etc. to the citizens of the country.

Q8: Mention any two National Development goals of India.
Ans: Corruption-free society and High per capita income.

Q9: Which is the most important attribute for national development?
Ans: National income or per capita income of the nation.

Q10: ‘For comparing countries, total income or national income is not a useful measure. Give reason.
Ans: Since countries have different populations, comparing total income will not tell us what an average person is likely to earn.

Q11: What is average income or per capita income? 
Ans: When the total national income is divided by the total population, it is called the per capita income.
Per Capita Income = National Income / Population

Q12: What is the most important component for comparing different countries? 
Ans: Per capita income.

Q13: Which criteria is used by the World Bank to classify different countries?
Ans: Per capita income.

Q14: Which countries have been categorized as rich countries according to the World Development Report? 
Ans: Countries with a per capita income of US $ 63400 per annum and above are called rich countries.

Q15: Which countries have been categorized as low-income countries according to World Development Report?
Ans: Countries with a per capita income of US $ 1005 or less are called low-income countries.

Q16: Under which category India has been placed by the World Bank Development Report?
Ans: Low middle-income countries as India’s per capita income is less than JUS $ 1005. or less.

Q17: What are developed countries according to the World Development Report?
Ans: All the countries excluding countries of the Middle East and certain other small countries that have per capita income of US $ 12276 per annum or above have been termed as developed countries.

Q18: What is the Infant Mortality Rate? 
Ans: It indicates the number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.

Q19: What is Literacy Rate? 
Ans: It measures the proportion of the literate population in the seven and above age group.

Q20: What is the Net Attendance ratio? 
Ans: It is the total number of children of the age group 6-10, attending school as a percentage of the total number of children in the same age group.