Class-10 Subject -Social Studies (Economics) Chapter-3 Money and Credit

 EVENTS CONVENT HIGH SCHOOL

18/11/2021      CLASS- 10   SESSION 2021-22
SUBJECT :  SOCIAL SCIENCE (ECONOMICS)

CHAPTER-3 MONEY & CREDIT
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Page 52:

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

1. High-risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment.
2. There is a minimum stretch of three of four months between the time when farmers buy these inputs and when they sell the crop.
3. Farmers generally take crop loans at the beginning of the season and repay the loan after harvest.
4. Repayment of the loan is crucially dependent on the income from farming.
5. If a crop fails due to shortage of rain or for any other reason, a small farmer has to sell a part of the land to repay the loan.
6. Failure of crops create further problems for the borrowers. Credit does not improve his earnings but leaves him worse off than before. Credit in high risks situations pushes the borrower into a debt trap, a situation from which recovery is very painful.

Question 2: How does money solve the problem of double coincidence of wants? Explain with example of your own.
Answer:
In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. By serving as a medium of exchanges, money removes the need for double coincidence of wants and the difficulties associated with the barter system. For example, it is no longer necessary for the farmer to look for a book publisher who will buy his cereals at the same time sell him books. All he has to do is find a buyer for his cereals. If he has exchanged his cereals for money, he can purchase any goods or service which he needs. This is because money acts as a medium of exchange.

Question 3: How do banks mediate between those who have surplus money and those who need money?
Answer:

1. People hold money as deposits with banks which pay an interest rate on them.
2. People do not withdraw their cash daily.
3. The banks, therefore, hold only 15 percent of their deposits as cash with themselves in order to pay the depositors who might come to withdraw money from the bank on any given day.
4. Since, on any particular day, only some of its many depositors come to withdraw cash, the bank is able to manage with this cash.
5. They use a major portion of the deposits to extend loans to those who need money.
6. The banks make use of deposits to meet the loan requirements of the people.
7. Thus, in this way, the banks mediate between those who have surplus money and those who need money. Banks charge a higher interest rate on loans than what they offer on deposits. The difference between the two is the main source of income of the banks.

Question 4: Look at a 10 rupee note. What is written on top? Can you explain this statement?
“Reserve Bank of India” and “Guaranteed by the Government” are written on top.
Answer:
In India, the Reserve Bank of India issues currency notes on behalf of the central government. The statement means that the currency is authorized or guaranteed by the Central Government. That is, Indian law legalizes the use of the rupee as a medium of payment that can not be refused in a setting transaction in India.

Question 5: Why do we need to expand formal sources of credit in India?
Answer:
We need to expand formal sources of credit in India due to the following reasons :

1. The moneylenders or the agricultural traders charge a much higher interest on loans. They generally charge 5 percent per month whereas the banks charge about 10 to 15 percent per annum. The higher rate of interest does little to increase the income of the borrowers.
2. The farmers who take loans from a trader are forced to sell their crops to him at a low price. As a result of it, the farmers suffer while the traders make a profit by selling grains at a higher prices.
3. Higher interest means the borrower has to pay a major portion of his earnings to repay the interest and principal of the loan. This sometimes leads to debt trap for the borrowers.
4. On the other hand, banks and cooperatives charge less interest and do not exploit the borrowers. Under these circumstances, there is need for expansion of formal sources of credit in India. It is also necessary that everyone receives these loans.
5. This would also lead to higher incomes and many people could then borrow cheaply for a variety of needs. The formal credit should be distributed equally to benefit the poor from the cheaper loan.
6. It may be added that cheap and affordable credit is crucial for the development of the country.

Question 6: What is the basic idea behind the SHGs for the poor? Explain in your own words.
Answer:
The basic behind the SHGs is to provide a financial resource for the poor through organizing the rural poor especially women, into small Self Help Groups. They also provide timely loans at a responsible interest rate without collateral. Thus, the main objectives of the SHGs are:

1. To organize rural poor especially women into small Self Help Groups.
2. To collect savings of their members.
3. To provide loans without collateral.
4. To provide timely loans for a variety of purposes.
5. To provide loans at a responsible rate of interest and easy terms.
6. Provide a platform to discuss and act on a variety of social issues such as education, health, nutrition, domestic violence, etc.

Question 7: What are the reasons why the banks might not be willing to lend to certain borrowers?
Answer:
The banks might not be willing to lend certain borrowers due to the following reasons:

• Banks require proper documents and collateral as security against loans. Some persons fail to meet these requirements.
• The borrowers who have not repaid previous loans, the banks might not be willing to lend them further.
• The banks might not be willing to lend those entrepreneurs who are going to invest in the business with high risks.
• One of the principal objectives of a bank is to earn more profits after meeting a number of expenses. For this purpose, it has to adopt a judicious loan and investment policies which ensure fair and stable return on the funds.

Question 8: In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
Answer:
The Reserve Bank of India monitors the amount of money that banks loan out, and also the amount of cash balance maintained by them. It also ensures that banks give out loans not just to profiteering businesses but also to small cultivators, small scale industries, and small borrowers. Periodically, banks are supposed to submit information to the RBI on the amounts lent, to whom, and at what rates of interest.

This monitoring is necessary to ensure that equality is preserved in the financial sector, and that small industry are also given an outlet to grow. This is also done to make sure that banks do not loan out more money than they are supposed to, as this can lead to situations like the Great Depression of the 1930s in the USA, which greatly affected the world economy as well.

Question 9: Analyse the role of credit for development.
Answer:
The role of credit for development is very significant as mentioned below:

• It helps in increasing economic activities of the borrowers.
• If credit is made available to the poor people on reasonable terms and conditions, they can improve their economic condition. This will help in the over all development.
• Credit may increase the activities in the secondary sector e., manufacturing sector. Thus, with credit people could grow crops, do business, set up small-scale industries. They could set up new industries or trade in goods. Therefore, credit is crucial for the country’s development.

Question 10: Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Answer: Manav will decide whether to borrow from the bank or the moneylender on the basis of the following terms of credit:

• rate of interest
• requirements availability of collateral and documentation required by the banker.
• mode of repayment.

Depending on these factors and of course, easier terms of repayment, Manav has to decide whether he has to borrow from the bank or the moneylender.

Question 11: In India, about 80 percent of farmers are small farmers, who need cultivation.
(a) Why might banks be unwilling to lend to small farmers?
(b) What are the other sources from which the small farmers can borrow?
(c) Explain with an example of how the terms of credit can be unfavorable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
Answer:
(a) The banks might be unwilling to lend to small farmers because the farmers usually take crop loan at the beginning of the season and repay the loan after harvest. Repayment of loan is dependent on the income from farming. And in case of crop failure, repayment becomes impossible. In such cases, the recovery of loan from the small farmers becomes very difficult. The small farmers have to sell part of the land to repay the loan that is why banks do not want to give loans to small farmers.

(b) Small farmers usually borrow from moneylenders or agricultural traders.

(c) In case of failure of crops, it becomes impossible for small farmers to repay the loan by selling their crops. Thus in order to repay, the small farmers sell a part of the land. This leads to worsening of their condition. Sometimes, small farmers give collateral or security against loans. The collateral generally consists of land, building, vehicles, livestock. In case of nonpayment of loan, the lender may sell the collateral to recover loan. Under above conditions, the terms of credit become unfavourable for the small farmers.

(d) Besides banks, the other major source of cheap credit in rural areas are the cooperative societies or cooperatives. Members of a cooperative society, pool their resources for cooperation in certain areas. The cooperative accepts deposits from its members. With these deposits as collateral, the cooperative obtains loan from the bank. These funds are used to provide loans to members.

Question 12: Fill in the blanks:

1. Majority of the credit needs of the __________households are met from informal sources.
2. __________costs of borrowing increase the debt-burden.
3. __________issues currency notes on behalf of the Central Government.
4. Banks charge a higher interest rate on loans than what they offer on __________.
5. _________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Answer:

1. Majority of the credit needs of the poor households are met from informal sources.
2. High costs of borrowing increase the debt-burden.
3. Reserve Bank of India issues currency notes on behalf of the Central Government.
4. Banks charge a higher interest rate on loans than what they offer on deposits.
5. Collateral is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Question 13: Choose the most appropriate answer.
(i) In an SHG most of the decisions regarding savings and loan activities are taken by
(a) Bank.
(b) Members.
(c) Non-government organization.

(ii) Formal sources of credit do not include
(a) Banks.
(b) Cooperatives.
(c) Employers.
Answer:
(i) (b)
(ii) (c)

class-10 subject social science (Economics) Chapter-2 Sectors and Indian Economy.

 EVENTS CONVENT HIGH SCHOOL

18/11/2021      CLASS- 10   SESSION 2021-22
SUBJECT :  SOCIAL SCIENCE (ECONOMICS)

CHAPTER-2 SECTORS OF INDIAN ECONOMY
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Page 35

Q1: Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.

Q2: Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises( √)
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in ______________ sector.
(i) primary (√)
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of _____________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services   (√)
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent  (√)
(iv) 70 per cent

Q4: Find the odd one out and say why.

Answer:

• Tourist guide, dhobi, tailor, potter.
• Teacher, doctor, vegetable vendor, lawyer.
• Postman, cobbler, soldier, police constable.
• MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.
• Potter, because only the potter relates to the secondary sector.
• Vegetable vendor, since only this directly helps in the production of goods.
• Cobbler because the only cobbler falls in the private sector.
• Sahara Airlines, as this is only a private sector company in the group.

Q6: Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how.
Answer:
The classification of economic activities into primary, secondary, and tertiary sectors is helpful as mentioned below :

• It provides information on how and where the people of a country are employed. For example in India in 2000, the share of the primary sector in employment was about 60 percent e., more than other sectors.
• It also helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
• If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting and the government must take measures to rectify this.
• The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to.
• It provides us information about employment conditions in different sectors. For example in India, the primary sector faces the problem of disguised unemployment. In this sector, more people are employed and even if some are removed, production will not be affected.
• It provides us the information about progress in different sectors. For example, the importance of the tertiary sector has increased due to various factors need for basic services and the coming of IT services.
  In view of the above factors, it is necessary to classify economic activities into three sectors for smooth economic administration and development.

Q7: For each of the following sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer:
(1) For each of the sectors we focus on employment and GDP due to the reasons mentioned below :

• To know the number of people employed in that sector. For example in 2000, the share of the primary sector in employment was more than secondary and tertiary sectors.
• To know the share of each sector in the GDP. For example in 2000, the share of the tertiary sector was more than that of the agriculture sector and secondary sector in the GDP.

• By focusing on GDP and employment we can draw conclusions regarding the generation of new employment opportunities in various sectors and take necessary steps accordingly.
• We come to know employment conditions for workers such as in the unorganized sector and take necessary steps to improve their condition. So that the workers are not exploited.

(2) Focus should be laid on other issues such as conditions of work, profit motive, efficiency, public welfare, environmentally friendly.

• Conditions of work should be in the favour of workers.
• The employment should be regular and the employer should follow various laws such as Factories Act, Minimum Wages Act etc.
• The production must be for the welfare of the people who should not be exploited by raising prices or creating a scarcity of goods in the market. Thus, such issues must be examined while discussing the role of different sectors in the economy of the country.

Q9: How is the tertiary sector different from other sectors? Illustrate with few examples.
Answer:
The tertiary sector is different from other sectors as mentioned below :

1. The activities of the tertiary sector help in the development of primary and secondary sectors.
2. These activities, by themselves, do not produce a good, but they are an aid or support for the production process. For example, the transport system helps in taking goods from the factory to markets for the purpose of selling or storing in godowns.
3. It provides telephones and other products for communication to the traders. Banks provide money to help production and trade.
4. Thus transport, storage, communication etc. are not tertiary activities. On the other hand, primary sector forms the base for all products that we subsequently make. Minerals and ores are natural products which are converted into other forms by manufacturing. Sugar is made from sugarcane.

Q10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: Disguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required.

For example in rural areas, this type of unemployment is generally found in the agricultural sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.

In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

Q11: Distinguish between open unemployment and disguised unemployment.
Open Unemployment – When a country’s labour force do not get opportunities fro adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.
Disguised Unemployment – This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required. This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

Q12: Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer?
Answer:
“The tertiary sector is not playing any significant role in the development of Indian economy” is partially correct due to reasons as mentioned below :

The share of tertiary sector in employment has not increased in proportion to its increase in production. In 2000, the production in service sector rose by 11 times, whereas employment has risen less than three times. Therefore, still more than half of the workers in the country are working in the primary sector.

New services such as based on information technology have become important, but not all the services of the service sector are growing well. At one end are highly skilled and educated workers but on the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair Arsons, transport persons. These persons barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Such persons can not play any important role in the development of the Indian economy. It is this part of service sector that is not growing in importance.

Q13: Service sector in India employs two different kinds of people. Who are these?
Answer:
The service sector in India employs the following two different kinds of people. They are:
(a) The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
(b) The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.

Q14: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Answer:
Yes, workers are exploited in the unorganized sector. This would be clear from the following points:

1. There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
2. They do not get other allowances apart fro the daily wages.
3. Government rules and regulations to protect the labourers are not followed there.
4. There is no job security.
5. Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
6. Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.

Q15: How are the activities in the economy classified on the basis of employment conditions?
Answer:
On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors.

Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.

Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.

Q16: Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer:
The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

Q17: Explain the objective of implementing the NREGA 2005.
Answer:

1. The objective of implementing the NREGA 2005 i.e., National Rural Employment Guarantee Act 2005 is to implement the right to work.
2. The Act has to be implemented in 200 districts.
3. Under this Act, all those who are able to, and are in need of work have been guaranteed 100 days of employment in a year by the government.
4. If the government fails in its duty to provide employment, it will give unemployment allowance to the people.
5. The types of work that would in future help to increase the production from land will be given preference under this Act.

Q18: Using examples from your area compare and contrast the activities and functions of private and public sectors.
Answer:
The activities and functions of private and public sectors in our area may be compared as mentioned below :

Private Sector	Public Sector
(1) The vegetable shops, grocery shops, sweet shops etc. are in private sector.	(1) Mother Dairy booths which sell vegetables, fruits, milk and milk products are in public sector.
(2) These are owned by private individuals.	(2) These are owned by public sector undertaking ‘Mother Dairy’
(3) Vegetables and other products are generally of good quality.	(3) The vegetables and fruits are generally of average or poor quality.
(4) The rates may be slightly higher	(4) The rates are lower than the market rates.
(5) The companies like Reliance, Tata, Airtel provide telephone and TV services which are of very good standard.	(5) MTNL provides telephone services. There are complaints against their services. On many occasions, telephones remain out of order, hut they do not charge for that period.

Q20: Give three examples of Public Sector activities and explain why the government has taken up them.
Answer: The examples are:
Railways: The government has taken up it for the following reasons –
1. Only the government can invest large sums of money on the public project with long gestation period.
2. To ensure and provide transportation at cheap rate.
NTPC: The government has taken up it to provide electricity at a lower rate than the actual cost of production. The aim is to protect and encourage the private sector especially small scale industries.
AIIMS: To provide quality health services at reasonably cheap rate was the main purpose of the government to start this.

Q21: Explain how Public sector contributes to the economic development of a nation.
Answer: In the following ways Public sector contributes to the economic development of a nation:

1. It promotes rapid economic development through creation and expansion of infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It is ensuring equality of income, wealth and thus, a balanced regional development.
5. It encourages development of small, medium and cottage industries.
6. It ensures easy availability of goods at moderate rates.

Q22: The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples?
Answer:
The workers in the unorganised sector need protection on the following issues: wages, safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they have no job security. Here, wages too differ from time to time. Consequently, the government has set up a minimum wages act to protect such workers from economic exploitation.

The same problem exists for miners working in private mining companies. Their safety is secondary to the company’s profits, and as a result, many miners suffer grievous injuries (and many a times, even die) due to inadequate safety gear and norms. Governments of most nations have now laid down strict rules for private enterprises to ensure workers’ safety.

Most companies in the unorganised sector do not provide health insurance to their employees. Some of these might be involved in dangerous factory production that may harm a worker’s health in the long term. These workers need to be protected against the tyranny of the employer, and it is here that the government steps in.

Q23: A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Answer:
Ways to generate more employment in the city of Ahmedabad have to be provided by the government, especially in the unorganised sector. As the table shows, the organised sector’s earnings are much higher than that of the unorganised sector even though the latter employs almost 80% of the city workers. More companies need to be brought under the roof of the organised sector so that workers from the unorganised sector are attracted to jobs there, with higher and more secure wages. For this, the government must provide loans and aid to companies transferring from unorganised to organised sectors.

Class-9 Subject Social Science Economics Chapter-2 People as Resource

 EVENTS CONVENT HIGH SCHOOL

25/10/2021      CLASS-9     SESSION 2021-22
SUBJECT :social science 

ECONOMICS
CHAPTER-2
PEOPLE AS RESOURCE

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Question-1

What do you understand by ‘people as a resource’?
Solution:
‘People as Resource’ is a way of referring to a country’s working people in terms of their existing productive skills and abilities. Human resource is an asset for the economy rather than a liability. Population becomes human capital when there is investment made in the form of education, training and medical care. In fact, human capital is the stock of skill and productive knowledge embodied in them.

Question-2
How is human resource different from other resources like land and physical capital?
Solution:
Human resource is different in the following ways:

1. Land and other resources are fixed, limited and specified whereas human resources can be nurtured through education and health.
2. Human resources can bring a change in other resources whereas other resources can not change or affect human resource.
3. Human resource can make use of land and physical capital whereas land and physical capital can not become useful on its own.

Question-3
What is the role of education in human capital formation?
Solution:
Educated people find jobs in private firms while the uneducated people continue with the same work as their parents. They earn a meagre income like their parents, which is just enough to support a family. Several years of education adds to the quality of labour. This enhances their total productivity. Total productivity adds to the growth of the economy. This in turn pays an individual through salary or in some other form of his choice. It is a known fact that with investments made on education and health; one can yield a high return in the future in the form of higher earnings and greater contribution to society.

Question-4
What is the role of health in human capital formation?
Solution:
The role of health in human capital formation is as follows:

1. Healthier people have higher productivity because the health of a person helps him to realise his potential and the ability to fight illness. On the other hand, an unhealthy person becomes a liability for an organisation.
2. It improves the quality of life. A healthy person is able to do his work in a proper and efficient way.
3. A healthy person makes greater contribution to society as compared to an unhealthy person.
4. Good health enables a person to earn more and to be more regular in his work.

Question-5
What part does health play in the individual’s working life?
Solution:
Health plays a very important role in an individual’s life because as we all know health is wealth and only a healthy person can work or perform to his full potential. An unhealthy person can not work efficiently. A healthy person is able to work harder and better, thus, earning more and living a better life. If the body is healthy, only then one can perform well. So, we can say that health plays a vital role in an individual’s life.

Question-6
What are the various activities are undertaken in the primary sector, secondary sector and tertiary sector?
Solution:
The various activities have been classified into three main sectors i.e., primary, secondary and tertiary. The primary sector includes agriculture, forestry, animal husbandry, fishing, poultry farming, and mining. Quarrying and manufacturing is included in the secondary sector. Trade, transport, communication, banking, education, health, tourism, services, insurance etc. are included in the tertiary sector.

Question-7
What is the difference between economic activities and non-economic activities?
Solution:
Economic Activities Non-Economic Activities The activities in the third sector result in the production of goods and services. Activities, which are not performed to earn money but to get some satisfaction, are called non-economic activities. These activities add value to the national income. These activities are called economic activities. These activities are performed to discharge social obligation or for physical fitness or for recreation. Economic activities have two parts — market activities and non-market activities.

Market activities involve remuneration to anyone who performs. People visiting places of worship, providing relief to the victims of flood and earthquake, engaging in sports activities, gardening, listening to radio or watching television are all examples of non-economic activities Non-market activities are the production for self-consumption. The three activities most often reported are cleaning, cooking, and childminding.

Question-8
Why are women employed in low paid work?
Solution:
Women are paid for their work when they enter the labour market. Their earning, like that of their male counterpart, is determined on the basis of education and skill. A majority of the women have meager education and low skill formation and hence women are paid low compared to men. Most women work where job security is not there.

Question-9
How will you explain the term unemployment?
Solution:
Unemployment is said to exist when people are willing to work at the going wages but cannot find jobs.

Question-10
What is the difference between disguised unemployment and seasonal unemployment?
Solution:
Disguised Unemployment. In case of disguised unemployment, people appear to be employed but they are not actually employed. Sometimes, in agricultural families, eight people are working on a farm, whereas only four people are needed to do that work. Thus, four persons are surplus and they are not needed on the farm. They also do not help to increase the production. If these four extra persons are removed from the farm, the production from the farm will not decrease. Therefore, these four persons appear to be employed but are actually disguisedly unemployed.

Seasonal Unemployment. Seasonal unemployment happens when people are not able to find jobs during some months of the year. People dependent upon agriculture usually face such problems. There are certain busy seasons when sowing, harvesting, weeding and threshing are done. When the plants are growing, there is not much work. During this period, they remain unemployed and are said to be seasonally unemployed.

Question-11
Why is educated unemployed, a peculiar problem of India?
Solution:
In the case of India educated unemployment has become a common phenomenon. Many youths with matriculation, graduation and post-graduation degrees are not able to find jobs. A study shows that the unemployment of graduates and post-graduate has increased faster than among matriculates. A paradoxical manpower situation is witnessed as a surplus of manpower in certain categories coexist with a shortage of manpower in others.

Question-12
In which field do you think India can build the maximum employment opportunity?
Solution:
Since agriculture is the backbone of India, India can build maximum employment opportunities in agriculture-based industries.

Question-13
Can you imagine some village that initially had no job opportunities but later came up with many?
Solution:
Some of the measures in the education system to mitigate the problem of the educated unemployed are:

1. Vocational education should be encouraged so that people do not have difficulty getting jobs because they will be better trained for work.
2. More use of information technology should be made in giving education.
3. Education should be job-oriented.
4. More employment opportunities should be made available to the educated people in the tertiary sector.

Question-14
Which capital would you consider the best — land, labour, physical capital and human capital? Why?
Solution:
The capital I consider the best in Human Capital because there are countries like Japan that have invested in human resources as they did not have any natural resources. These countries are developed and rich countries. They import the natural resource needed in their country. They have invested in people especially in the field of education and health. These people have made efficient use of other resources like land and capital. Efficiency and technology evolved by people have made these countries rich and developed.

Class-9 Subject- SOCIAL SCIENCE CHAPTER-1 THE STORY OF VILLAGE PALAMPUR

EVENTS CONVENT HIGH SCHOOL
24/08/2021           CLASS-9      SESSION2021-22(SLOT-1)
SOCIAL SCIENCE(ECONOMICS )
Chapter-1
THE STORY OF VILLAGE PALAMPUR 
_______________________________________

Question-1Modern farming methods require more inputs, which are manufactured in industry. Do you agree?
Solution:No doubt, modern farming requires more inputs than traditional farming. These are:

• chemical fertilizers
• pesticides
• pump sets
• farm machinery
• electricity
• diesel
• HYV seeds
• water supply

Most of these inputs like fertilizers, tools, and implements are manufactured in industry. HYV seeds are developed in agriculture research laboratories. Machine industry provides various kinds of implements, irrigation pumps, and farming machinery to improve productivity and minimize farming efforts. Chemical and soil engineering-based industries provide fertilizers and pesticides to boost agriculture. Water supply is done by canals and tanks. Electricity is supplied by powerhouses.

Question-2How did the spread of electricity help farmers in Palampur?

Solution:The spread of electricity helped the farmers in Palampur in the following ways:

1. Most of the houses have electricity connections.
2. It is used to run tubewells in the fields.
3. It is used in various types of small businesses.

Question-3Is it important to increase the area under irrigation? Why?
Solution:Irrigation facilities are available only to about 40% of the cultivated land area in the country. The rest of the land, i.e., 60% of the cultivated area, is still dependent on rainfall for irrigation. It means that the benefit of multiple cropping cannot be achieved by 60% of the farmers in the country. They produce less and so their income is also low. Thus, they live in poverty.

Therefore, if these farmers are to be brought out of poverty, farm productivity has to increase. This is only possible when they use modern farming methods and dependable irrigation facilities. Hence, it is important to increase the area under irrigation.

Question-4Why are the wages for farm labourers in Palampur less than minimum wages?
Solution:A waged labourer might be employed on a daily basis, or for one particular farm activity like harvesting, or for the whole year. Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan. Hence they pay very low wages to the farm labourers.

Question-5What are the different ways of increasing production on the same piece of land? Use examples to Explain.
Solution:To grow more than one crop on a piece of land during the year is known as multiple cropping. It is the most common way of increasing production on a given piece of land. All farmers in Palampur grow at least two main crops; many are growing potato as the third crop in the past fifteen to twenty years.

Question-6How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?
Solution:In contrast to the small farmers, the medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.

Question-7On what terms did Savita get a loan from Tajpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?
Solution:Savita was a small farmer. She planed to cultivate wheat on her 1-hectare land. Besides seeds, fertilizers and pesticides, she needed cash to buy water and repair her farm instruments. She estimated that his working capital itself would cost a minimum of Rs 3,000. She didn’t have the money, so she decided to borrow from Tejpal Singh, a large farmer. Tejpal Singh agreed to give Savita the loan at an interest rate of 24 percent for four months, which was a very high-interest rate.

Savita also had to promise to work on his field as a farm labourer during the harvest season at Rs 35 per day. Savita knew that this wage is quite low and she will have to work very hard to complete harvesting on her own field, and then work as a farm labourer for Tejpal Singh. Savita agreed to those tough conditions, as she knew, that getting a loan is difficult for a small farmer. Yes, Savita’s condition would have been different if she could get a loan from the bank at a low rate of interest.

Question-8What can be done so that more non-farm production activities can be started in villages?
Solution:The villagers must be made aware of the non-farm production activities and their benefits. They must also be taught the methods of doing such activities. The villagers who have the impression that they can earn only by farming, must be given proper guidance and help to do such activities.

Class-10 Subject- SOCIAL SCIENCE Chapter-1(ECONOMICS) DEVELOPMENT

 EVENTS CONVENT HIGH SCHOOL

21/08/2021          CLASS-10               SESSION2021-22(SLOT-1)
ECONOMICS
CHAPTER-1
DEVELOPMENT
_______________________________________

Q1. Development of a country can generally be determined by

(i) its per capita income

(ii) its average literacy level

(iii) health status of its people

(iv) all the above

Answer:

(iv) all the above

Q2. Which of the following neighbouring countries has better performance in terms of human development than India?

(i) Bangladesh

(ii) Sri Lanka

(iii) Nepal

(iv) Pakistan

Answer:

(ii) Sri Lanka

Q3. 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?

(i) Rs 7500

(ii) Rs 3000

(iii) Rs 2000

(iv) Rs 6000

Answer:

(iii) Rs 6000

Q4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

(1)In the World Development Report, 2006, the World Bank has used the criterion of average income or per capita income in classifying different countries.

The average income or the per capita income is the total income of the country divided by its population.

(2) According to the WDR 2006, countries are classified as mentioned below :

Rich countries : Countries with per capital income of? 4,53,000 per annum and above in 2004 are called rich countries

Low-income countries : Countries with per capital income of? 37,000 or less are called low-income countries.

India comes in the category of low-income countries because its per capital income in 2004 was just ? 28,000 per annum.

Rich countries, excluding countries of Middle East and certain other small countries are generally called developed countries.

(3) Limitations of the criterion are as mentioned below :

It does not tell us how this income is distributed among people. A country may have more equitable distribution. People may be neither very rich nor extremely poor.

In another country with same average income, one person may be extremely rich while others may be very poor. So, the method of average income does not give correct picture of a country.

 This system hides disparities among people.

Q5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

The criterion used by World Bank: The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries.

According to the World Development Report 2006, published by the World Bank, countries with per capita income of $10066 per annum and above in 2004 are called rich or developed countries. On the other hand, countries with per capita income of $825 or less are called low-income countries.

The UNDP compares countries based on HDI e., on the educational levels of the people, their health status and per capital income or average income.

Human Development Index used by UNDP is better because it is a wider indicator in which besides per capital income, health and education are also included.

Q6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to the development.

(1) We use averages for comparison between two countries, two persons or any two or more things.

(2) There are the following limitations to the use of averages :

Averages do not tell us about similarities or differences between two countries or persons or things.

By averages only one aspect income, size etc. in case of country, marks or participation in sports activities etc. in case of student, can be compared. All aspects or achievements are not compared.

As only one aspect is compared, it does not give true picture of different countries, persons or things. For example, students differ in height, health, talents and interests. The healthiest student may not be the most intelligent or topper in studies. Similar is the case in respect of countries or states. A country may be ahead than the other country in one field but may lag behind in the other field. So averages do not give the correct picture.

Q7. Kerala, with lower per capita income, has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

It is correct to say that per capita income is not a useful criterion at all and should not be used to compare states due to reasons as mentioned below :

Money cannot buy all the goods and services that you need to live well. Income by itself is not a completely adequate indicator of material goods and services that citizens are able to use.

There cannot be a pollution-free environment in a colony of rich people unless the whole community takes preventive steps.

Sometimes, it is better to have collective services like security for the whole locality than to have individual security for one’s own house. Again a school may be opened for the children of the whole community than for one or two children of a rich person.

Kerala has a better human development ranking than Punjab.

In Kerala, Infant Mortality Rate is 11 in comparison to 49 in Punjab, where the per capita income is much more than Kerala. It is ? 26000 whereas in Kerala it is ? 22800. It is because Kerala has adequate basic health and educational facilities.

Similarly in some states, the Public Distribution System (PDS) functions well and people get ration regularly whereas in some states ration shops do not function properly. At such places, people face a shortage of grains that affect their health. Thus it is clear that the states should not be compared on the basis of per capita income – alone.

Q8. Find out the present sources of energy that are used by the people in India. What could be the other possibilities fifty years from now?

The present sources of energy that are used by the people of India are electricity, coal, crude oil, cowdung and solar energy. Other possibilities fifty years from now, could include ethanol, bio-diesel, nuclear energy and better utilization of wind energy, especially with the imminent danger of oil resources running out.

Q9. Why is the issue of sustainability is important for development?

Sustainable development means that development should meet the needs of the present without compromising the ability of future generations to meet their needs. However, since the second half of the twentieth century, a number of scientists have been warning that the present type and levels of development are not sustainable. The issue of sustainable development has emerged from rapid industrialization of the world in the past century. It is felt that economic growth and industrialization have led to the reckless exploitation of natural resources. On the other hand, the stock of natural resources are limited. So, the growth of all countries in the future is likely to be endangered if the limited resources are completely exhausted.

Under these circumstances, the issue of sustainability has become important for development. A number of resources are being overused. For example, groundwater is under serious threat of overuse in many parts of the country i.e., Punjab, Haryana and western U.P. The water level has declined over 4 meters. As a result of it if we go on overusing there will be a water crisis in future. Similarly, if non-renewable resources are used recklessly these will also be exhausted.

Q10. “The Earth has enough resources to meet the need of all but not enough to satisfy the greed of even one person.” How is this statement relevant to the discussion of development? Discuss.

This statement is relevant to the discussion of development since both resources and development go hand in hand. As the statement claims, our earth has enough resources – renewable and non-renewable to satisfy everyone’s need if we use them in an economic manner. For the sustainability of development, the consumption and maintenance of resources is also crucial. We have to use the resources keeping our environment protected and clear so that there is a balance between the development and use of our resources. As otherwise after a certain point of time in future the development will be stagnated.

Q11. List a few examples of environmental degradation that you may have observed around you.

Some of the examples of environmental degradation in the area are as follows :

 Air pollution has increased due to the emission of smoke from factories and vehicles.

There is an increase in water pollution due to shops and small factories in residential areas.

There is noise pollution due to the use of loudspeakers at night and blowing of horns unnecessarily on the roads by different vehicles.

People throw garbage wherever they want. Perhaps there is no provision for dustbins in the streets or roadsides.

Sometimes people urinate in the open on the roadside due to a lack of public conveniences.