CBSE Class 10

Consumer Rights Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Economics Chapter 5 Consumer Rights familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Consumer Rights Class 10 Questions and Answers Economics Chapter 5

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 5 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 5 Questions and Answers helps students to attempt the exam with confidence.

Consumer Rights NCERT Intext Questions and Answers

Let’s Work These Out (NCERT Textbook page 77)

Question 1.
What are the various ways by which people may be exploited in the market?
Answer:
The various ways by which people may be exploited in the market are—

• Goods sold in the market are sometimes not measured or weighted correctly.
• Sometimes traders add charges that were not mentioned before.
• Sometimes adulterated/defective goods are sold.
• Electronic goods produced locally lack the required inbuilt safeguards, which may cause accidents.
• Sellers sometimes mislead consumers by giving information about the products, price, quality, safety, expiry date, etc.
• Consumers are often harassed in getting telephone connections or licensed items.
• Many suppliers do not provide satisfactory after-sale service in case of home appliances or electronic equipments.

Question 2.
Think of one example from your experience where you thought that there was some ‘cheating’ in the market. Dicuss in the classroom.
Answer:
A few days ago, I purchased ten bottles of cold drinks. As I was in hurry, I didn’t bother to go through the details about price, batch number, date of manufacture, expiry date, etc. When I came back home, my father took all the bottles one by one and looked at the details very closely. To his utter surprise, one of the bottles was expired nine months ago. He called me and pointed out what mistake I had done. I went to the shopkeeper with that bottle and got it replaced only after wasting at least two hours as it was a peak time.

Question 3.
What do you think should be the role of government to protect consumers?
Answer:
The government should lay down rules and regulations to protect and safeguard the interest of consumers. The rules and regulations should be enforced properly by the government.

Let’s Work These Out (NCERT Textbook page 78)

Question 1.
What could have been the steps taken by consumer groups?
Answer:

• Consumer groups should have pressurised the business organisations or groups to strictly follow the rules and regulations that the government has laid down.
• They should have also supervised whether these rules and regulations are fully implemented or not.
• They should spread awareness among consumers about their rights and duties as consumers.

Question 2.
There may be rules and regulations but they are often not followed. Why? Discuss.
Answer:
The main reason behind this is that consumers are not prompt. They do not want to spend even a bit of their time on such activities. They also avoid to fall into legal procedures. They don’t bother whether the rules and regulations are followed or not.

Let’s Work These Out (NCERT Textbook page 79)

Question 1.
For the following products/services discuss what safety rules should be observed by the producer?
(a) LPG cylinder
(b) cinema theatre
(c) circus medicines
(d) Medicines
(e) edible oil
(f) marriage pandal
(g) a high-rise building
Answer:
(a) LPG cylinder:

• The cylinder should be properly sealed and thus ensure that there is no leakage of gas.
• Also cylinders should be transported to the godown or customer premises in a safe manner.

(b) Cinema theatre

• There should be adequate number of fire extinguishers in the premises.
• Well-lighted exits should be there in all areas of emergencies like fire.
• Security should be tight to avoid uncalled for situation.

(c) Circus

• Same as cinema theatre.
• Some additional points include safety net for trapeze artist, secured cages for dangerous animals like tigers, lions, etc.

(d) Medicines

• They should carry all the details like date of manufacture, date of expiry, batch number, etc.
• The contents must be sealed properly.

(e) Edible oil

• Same as medicines.

(f) Marriage pandal

• There should be adequate number of fire extinguishers in the pandal.
• Well-lighted exits should be there in all areas for emergencies like fire or earthquakes.

(g) A high-rise building

• Fire safety measures should be there in the building.
• The building should be earthquake resistant.
• Lifts should be there with all safety features.
• Staircases should have handrails.
• Well-lighted exits for emergencies.

Question 2.
Find out any case of accident or negligence from people around you, where you think that the responsibility lay with the producer. Discuss.
Answer:
The maid working in my house purchased a pressure cooker last month. It was a local product without any ISI mark on it. The maid was happy that she got the pressure cooker at a low cost. When we told her that she should have bought a branded cooker, she didn’t pay attention. She only said that the cooker was working well. One day she didn’t come to my house.

When my mother phoned her, she told that she had got a head injury. While cooking rice, the cooker suddenly burst and its lid fell on her head with great force. She was immediately taken to a nearby hospital where the doctor on duty put a bandage on her head after giving some stitches. The above accident tells us that we should avoid to buy local goods because they may prove dangerous any time.

Let’s Work These Out (NCERT Textbook page 81)

Question 1.
When we buy commodities we find that the price charged is sometimes higher or lower than the maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this?
Answer:
The possible reason for higher price may be overcharging by the shopkeeper for an unaware consumer. The possible reason for lower price may be due to bargaining done by the customer. Sometimes discounts given by the shopkeeper on certain goods may also be a reason.

Question 2.
Pick up a few packaged goods that you want to buy and examine the information given. In what ways are they useful? Is there some information that you think should be given on those packaged goods but is not? Discuss.
Answer:
The information given on the packaged goods can be useful in the following ways—

• Maximum Retail Price (MRP)—The seller cannot ask you to pay more than this amount.
• Expiry date and date of Manufacture—This information safeguards you from buying old prod¬ucts.
• Ingredients used—One can know what is used in making the product.
• Address of Manufacturer—If the product is defective and the shopkeeper does not replace it, you can contact the manufacturer for redressal of your complaint.

Question 3.
People make complaints about the lack of civic amenities such as bad roads or poor water and health facilities but no one listens. Now the RTI Act gives you the power to question. Do you agree? Discuss.
Answer:
Through the Right to Information (RTI) Act, we can gather information from civic authorities about any matter regarding private or public concern. Information is taken even about the roads water and health facilities to pressurise the civic authorities. It has helped immensely in improving the condition. A lot more needs to be done in the this regard.

Let’s Work These Out (NCERT Textbook page 84)

Question 1.
Arrange the following in the correct order.
(a) Arita files a case in the District Consumer Court.
(b) She engages a professional person.
(c) She realises that the dealer has given her defective material.
(d) She starts attending the court proceedings.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(f) She is asked to produce the bill and warranty before the court.
(g) She purchases a wall clock from a retail outlet.
(h) Within a few months, the dealer was ordered by the court to replace her old wall clock with a brand new one at no extra cost.
Answer:
(a) She files a case in the District Consumer Court.
(b) She engages a professional person.
(c) She realises that the dealer has given her defective material.
(d) She starts attending the court proceedings.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(f) She is asked to produce the bill and warranty before the court.
(g) Arita purchases a wall clock from a retail outlet.
(h) Within a few months, the dealer was ordered by the court to replace her old wall clock with a brand new one at no extra cost.

Work These Out (NCERT Textbook page 86)

Question 1.
Look at the posters and cartoons in this chapter. Think of any particular commodity and the aspects that need to be looked at as a consumer. Design a poster for this.
Answer:
Do it yourself.

Question 2.
Find out the nearest consumer court for your area.
Answer:
Do it yourself.

Question 3.
What is the difference between consumer protection council and consumer court?
Answer:

• The consumer protection council guides consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
• Consumer courts have legal status. They are formed under the Consumer Protection Act, 1986. They work to protect the interest of consumers

Question 4.
The Consumer Protection Act 1986 ensures the following as rights which every consumer in India should possess
Answer:

• Right to choice.
• Right to information.
• Right to redressal.
• Right to representation.
• Right to safety.
• Right to consumer education.

Categorise the following cases under different heads and mark against each in brackets.
(a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. ( )
(b) John is dissatisfied with the services provided by MTNL/BSNL/TATA INDICOM for the past few months. He files a case in the District Level Consumer Forum. ( )
(c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint. ( )
(d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. ( )
(e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. ( )
(f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently. ( )
Answer:
(a) Right to safety
(b) Right to redressal
(c) Right to consumer education
(d) Right to information
(e) Right to choice
(f) Right to representation

Question 5.
If the standardisation ensures the quality of a commodity, why are many goods available in the market without ISI or Agmark certification?
Answer:
Although standardisation ensures the quality of a commodity, it is time consuming and expensive to avail of it. Also, there are many producers who are small and do their business on a small scale. Such producers cannot afford it. Besides, a lot of people in India are poor who can buy only local goods at low costs.

Question 6.
Find out the details of who provides Hallmark and ISO certification.
Answer:

• Hallmark certifies gold products and is provided by Gold Council of India.
• ISO certification is given by the International Standardisation Organisation. Its headquarters is in Geneva.

Economics Class 10 Chapter 5 NCERT Textbook Questions and Answers

Question 1.
Why are rules and regulations required in the marketplace? Illustrate with a few examples.
Answer:
(i) Rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position because of the irresponsible attitude of the sellers.

(ii) Exploitation in the marketplace happens in various ways. For example, sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.

(iii) Large companies with huge wealth, power and approach often manipulate the market in various ways. At times false information is passed on through the media and other sources to attract consumers.

For example, a company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. The truth was that the company had been making false claims. After long years of struggle the company was made to surrender. Hence, there is a need for rules and regulations for the protection of consumers.

Question 2.
What factors gave birth to the consumer movement in India? Trace its evolution.
Answer:
The factors that gave birth to the consumer movement in India are given below—
(i) Consumers were at great loss due to unethical and unfair trade practices in the marketplace. It was felt necessary to protect and promote the interests of consumers against such practices.

(ii) Consumers were fed up with rampant food shortages, hoardings, black marketing, adulteration of food and edible oil. These factors gave birth to the consumer movement in an organised form in the 1960s.

(iii) Till the 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.

(iv) However, India saw a sudden increase in the number of consumer groups in recent times because consumer exploitation by the private traders had aggravated. These groups are very active and have stimulated the consumer movement in the country.

(v) Various organisations locally known as Consumer Forums or Consumer Protection councils have also come into existence. The activities of these consumer forums have forced the Indian government to enact the Consumer Protection Act 1986, popularly known as COPRA.

Question 3.
Explain the need for consumer consciousness by giving two examples.
Answer:
There is a need for consumer consciousness because traders and sellers may exploit ignorant consumers. When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring knowledge and skill to become a well-informed consumer.

The following examples can explain the need for consumer consciousness—
(i) The ISI and Agmark logos are quality certifications on classes of products. Consumers need to look for such certifications while purchasing items requiring these marks.

(ii) When we buy medicines, on the packets, we as consumers must look for ‘directions for proper use’ and information relating to side effects and risks associated with the usage of that medicine.

Question 4.
Mention a few factors which cause exploitation of consumers.
Answer:
Some of the factors which cause exploitation of consumers are—

• Lack of awareness among consumers
• Limited supply of goods/products
• Misleading advertisements
• Limited competition
•  Compromising attitude of consumers.

Question 5.
What is the rationale behind the enactment of Consumer Protection Act, 1986?
Answer:
Consumer Protection Act, 1986, popularly known as COPRA is enacted to safeguard the interests of consumers and to protect them from exploitation. Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.

Question 6.
Describe some of your duties as consumers if you visit a shopping complex in your locality.
Answer:
As consumers we have some duties which we need to follow while purchasing something

• We should check expiry dates of the products to be bought
• We should not pay more than the Maximum Retail Price or MRP printed on the products.
• We must not forget to take a cash memo for the items purchased.
• If we buy a product and find it defective well within the expiry period, we should ask for replacement.
• We should register a complaint with a consumer forum in case the dealer refuses to take the responsibility for an adulterated or defective product.

Question 7.
Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?
Answer:
While buying a bottle of honey and a biscuit packet, the logo or mark we will have to look for is ISI or Agmark. Honey being an agricultural product should have the Agmark mark on it. The biscuit packet is a food product and therefore, it should carry the ISI mark.

The logos like ISI and Agmark certify the quality of goods in the market. Only those producers are allowed to use these logos who follow certain quality standards set by the organisation that issue these certifications.

If the bottle of honey or a biscuit packet carries one of these logos on it, it means that the product is of good quality and therefore, there is no risk in purchasing it.

Question 8.
What legal measures were taken by the government to empower the consumers in India?
Answer:
The following measures were taken by the government to empower the consumers in India— 4
(i) The Monopolistic and Restrictive Trade Practices (MRTP) Act was enacted in 1984 to ensure the consumers that there are no monopolies of the traders in the marketplace.

(ii) The Consumer Protection Act, popularly known as COPRA was enacted in 1986 to correct business conduct which may be unfair and against the interests of consumers at large.

(iii) Consumer courts have been set up at the district, state and national levels to provide justice to the people who are treated unfairly in the marketplace.

Question 9.
Mention some of the rights of consumers and write a few sentences on each.
Answer:
Some of the rights of consumers are—
(i) Right to safety—Safety is everyone’s right. 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. Hence, producers need to strictly follow the required safety rules and regulations.

(ii) Right to be informed—Consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.

(iii) Right to choose—Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.

(iv) Right to seek redressal—Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a customer, he/she has the right to get compensation depending on the degree of damage. He/she can move to consumer courts to get justice.

(v) Right to representation—COPRA has enabled us as consumers to have the right to represent in the consumer courts. What this means is that a consumer can engage a professional person before filing a case.

(vi) Right to consumer education—Consumers need to become conscious of the rights and duties while purchasing goods and services.

Question 10.
By what means can the consumers express their solidarity?
Answer:
The consumers can express their solidarity by forming consumer groups that write articles and hold exhibitions to highlight traders’ exploitation. These groups guide consumers on how to file cases in the consumer court. These are the voluntary organisations that receive financial support from the government for creating awareness among the people. Consumers’ active participation in the struggle against traders’ unfair practices will further strengthen consumer solidarity.

Question 11.
Consumers can also express their solidarity by forming Resident Welfare Associations. If any unfair trade practice is meted out to their members, they take up the case on their behalf.
Answer:
Critically examine the progress of consumer movement in India.
(i) The consumer movement in India has made some progress as the numbers of consumer groups and their activities have increased. Today there are more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.

(ii) The existing laws are not effective as far as compensation for defective goods is concerned.

(iii) The consumer redressal process is becoming difficult, expensive and time-consuming. Many a time consumers are required to engage lawyers.

(iv) After more than 25 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this, the enactment of laws that protect workers, especially in the unorganised sectors is weak.

(v) Rules and regulations for working of markets are often not followed. It is necessary to make consumers aware of their rights and role. It is, therefore, said that consumer movement can be effective only with the consumers’ active involvement.

Question 12.
Match the following:
(i) Availing details of ingredients of a product – (a) Right to safety
(ii) Agmark – (b) Dealing with consumer cases
(iii) Accident due to faulty engine in a scooter – (c) Certification of edible oil and cereals
(iv) District Consumer Court – (d) Agency that develop standards for goods and services
(v) Consumers International – (e) Right to information
(vi) Bureau of Indian Standards – (f) Global level institution of consumer welfare organisations
Answer:
(i) (e)
(ii) (c)
(iii) (a)
(iv) (b)
(v) (f)
(vi) (d)

Question 13.
Say True or False.
(i) COPRA applies only to goods.
(ii) India is one of the many countries in the world which has exclusive courts for consumer redressal.
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Court.
(iv) It is worthwhile to move to consumer courts only if the damages incurred are of high value.
(v) Hallmark is the certification maintained for standardisation of jewellery.
(vi) The consumer redressal process is very simple and quick.
(vii) A consumer has the right to get compensation depending on the degree of the damage.
Answer:
(i) False
(ii) True
(iii) True
(iv) False
(v) True
(vi) False
(vii) True

Additional Projects/Activities

Question 1.
Your school organises a consumer awareness week. As the Secretary of the Consumer Awareness Forum, draft a poster covering all the consumer rights. You may use the clues and ideas given in the poster on page 84 and 85. This activity can be done with the help of your English teacher.
Ans.
Draft the poster yourself.

Question 2.
Mrs. Krishna bought a colour television (CTV) against six months warranty. The CTV stopped working after three months. When she complained to the dealer/shop where it was purchased, they sent an engineer to set it right. The CTV continues to give trouble and Mrs Krishna no longer gets any reply to the complaint she made to the dealer/shop. She decides to write to the Consumer Forum in her area. Write a letter on her behalf. You may discuss with your partner/group members before you write it.
Answer:
Do it yourself.

Question 3.
Establish a consumer club in your school. Organise mock consumer awareness workshops like monitoring bookshops, canteen, and shops in your school area.
Answer:
Do it yourself.

Question 4.
Prepare posters with catchy slogans like:
(i) An alert consumer is a safe consumer
(ii) Buyers, Beware
(iii) Consumers be cautious
(iv) Be aware of your rights
(v) As consumers, assert your right
(vi) Arise, awake and stop not till (Complete it)
Answer:
Do it yourself.

Question 5.
Interview 4-5 persons in your neighbourhood and collect varied experiences regarding how they have been victims of such exploitation and their responses.
Answer:
Do it yourself.

Question 6.
Conduct a survey in your locality by supplying the following questionnaire to get an idea as to how alert they are as consumers.
Answer:
Do it yourself.

Hope the data shared above regarding the NCERT Class 10 Social Science Economics Chapter 5 Consumer Rights PDF has aided in your exam preparation. If you ever need any assistance you can always reach us and our team will guide you at the soonest possibility.

Globalisation and the Indian Economy Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Globalisation and the Indian Economy Class 10 Questions and Answers Economics Chapter 4

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 4 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 4 Questions and Answers helps students to attempt the exam with confidence.

Globalisation and the Indian Economy NCERT Intext Questions and Answers

Let’s Work These Out (NCERT Textbook page 59)

Read the passage on the (Textbook page) left and answer the questions:

Question 1.
Would you say Ford Motors is an MNC? Why?
Answer:
Yes. Ford Motors is an MNC because it is one of the largest automobile manufacturers with production spread over 26 countries of the world.

Question 2.
What is foreign investment? How much did Ford Motors invest in India?
Answer:
Investment made by MNCs is called foreign investment. Ford Motors invested Rs 1700 crore in India to set up a large plant near Chennai.

Question 3.
By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide, but also the lower costs of production. Explain the statement.
Answer:
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. MNCs also keep it in mind that their production units remain close to the markets where they can sell their product.

Question 4.
Why do you think the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors:
(a) cost of labour and other resources in India
(b) the presence of several local manufacturers who sypply auto parts to Ford Motors
(c) closeness to a large number of buyers in India and China.
Answer:
(a) The cost of labour and other resources in India is low and therefore, affordable. This will help Ford Motors to strengthen its position in the global market.

(b) Local manufacturers supply auto parts to Ford Motors at a lower cost. The company then sells these under their own brand names to the customers. In this way, it earns huge profits.

(c) India and China are the two vast countries of the world. They form one-third of the global population and thus provide a huge market for various companies. This helps Ford Motors increase its sale and profitability.

Question 5.
In what ways will the production of cars by Ford Motors in India lead to interlinking of production?
Answer:
The company is making engines and body at its plant. It gets other components from various suppliers operating in India. Thus, India is providing a perfect base for all the operations related to production of cars for Ford Motors. So, we can say that proper interlinking of production is happening in India for this company.

Question 6.
In what ways is an MNC different from other companies?
Answer:
(i) An MNC owns or controls production in more than one nation. It not only sells its finished products globally, but more importantly, the goods and services are produced globally. Other companies limit their operation to a single country or to a few countries.

(ii) An MNC is able to take advantage of cheap labour and easier access to important markets. But other companies may not avail these facilities.

Question 7.
Nearly all major multinationals are American, Japanese or European, such as Nike, Coca- Cola, Pepsi, Honda, Nokia. Can you guess why?
Answer:
These countries are well-developed and have advanced technology which helps them to produce higher level of output. They use different products as per their need and sell the surplus products in other country markets.

Let’s Work These Out (NCERT Textbook page 61)

Question 1.
What was the main channel connecting countries in the past? How is it different now?
Answer:
Foreign trade was the main channel that connected countries in the past. History acknowledges us about the trade routes connecting India and South Asia to markets both in the East and West and the extensive trade that took place along these routes. Things have not changed much even today. Trade still is the main channel to connect the countries. However, tourism is also playing a major role in interconnecting places.

Question 2.
Distinguish between foreign trade and foreign investment.
Answer:
Trade with different countries is called foreign trade and it includes import and export. Foreign investment, on the other hand, is the inflow of capital from another country to our own country. Thus, foreign trade means flow of goods and foreign investment means inward flow of capital.

Question 3.
In recent years China has been importing steel from India. Explain how the import of steel by China will affect
(a) steel companies in China.
(b) steel companies in India.
(c) industries buying steel for production of other industrial goods in China.
Answer:
(a) Chinese companies may find it difficult to compete with the import.
(b) Steel companies in India will prosper in their business.
(c) Consumers will avail better choice.

Question 4.
How will the import of steel from India into the Chinese markets lead to integration of markets for steel in the two countries? Explain.
Answer:
The Chinese companies will make various products of steel and will sell these products not only in the markets of China but in Indian markets as well. In this way, India can be an exporter of the raw material (steel) and an importer of finished products. This would lead to an integration of markets for steel in the two countries.

Let’s Work These Out (NCERT Textbook page 62)

Question 1.
What is the role of MNCs in the globalisation process?
Answer:
(i) MNCs set up offices and factories for production in various parts of the world.

(ii) They sell their finished products globally and more importantly, the goods and services are produced globally.

(iii) Foreign investment by MNCs in various countries has been rising. At the same time, foreign trade between countries has been rising rapidly.

(iv) MNCs control a large part of the foreign trade. For instance, the car manufacturing plant of Ford Motors in India not only produces cars for the Indian markets but also it exports cars to other developing countries and exports car components for its many factories around the world.

(v) More and more goods and services, investments and technology are moving between countries. Most regions of the world are in closer contact with each other due to those MNCs. Thus, MNCs are playing a major role in the globalisation process.

Question 2.
What are the various ways in which countries can be linked?
Answer:
Trade, tourism and educational institutions play an important role in linking countries together. Internet and telecommunication are also helping in interlinking different countries of the world.

Question 3.
Choose the correct option.
Globalisation by connecting countries result in
(a) lesser competition among producers.
(b) greater competition among producers.
(c) no change in competition among producers.
Answer:
(b) greater competition among producers.

Let’s Work These Out (NCERT Textbook page 63)

1. A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!

Question 1.
In the above example, underline the words describing the use of technology in production.
Answer:
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!

Question 2.
How is information technology connected with globalisation? Would globalisation have been possible without expansion of IT?
Answer:
Information Technology has brought about a revolutionary change in the world. It has also played an important role in globalisation. Telecommunication facilities have helped the people to come together from different parts of the world. Through the Internet, businesses are conducted in smooth way. Without expansion of Information Technology, globalisation would take a long time to happen. Through Information Technology any decision regarding business or other things can be taken within a very short span of time.

Let’s Work These Out (NCERT Textbook page 64)

Question 1.
What do you understand by liberalisation of foreign trade?
Answer:
Liberalisation of foreign trade means reducing or removing various trade barriers. With the liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.

Question 2.
Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.
Answer:
Quotas can be used as trade barriers in case of Chinese toys. Once this is done, the Indian toy makers will not face losses. Instead they will be in a position to sell their products. This will prove beneficial for both the Indian toy manufacturers and employees. So far my opinion is concerned, this should be used to protect Indian producers within the country from foreign competition.

Let’s Work These Out (NCERT Textbook page 66)

Question 1.
Fill in the blanks.
WTO was started at the initiative of countries. …………(a) ……….. The aim of the WTO is to …………(b) ……….. WTO establishes rules regarding ………..(c) ………..for all countries, and sees that ………..(d) ……….. In practice, trade between countries is not ………..(e) ……….. Developing countries like India have ………..(f) ……….. whereas developed countries, in many cases, have continued to provide protection to their producers.
Answer:
(a) developed
(b) liberalise foreign trade
(c) international trade
(d) these rules are obeyed
(e) free
(f) removed trade barriers

Question 2.
What do you think can be done so that trade between countries is more fair?
Answer:
Removal of trade barriers from all countries is very important because only their will ensure a fair international trade. Developed countries should not force the developing countries to remove trade barriers particularly when they themselves unfairly retain them.

Question 3.
In the example given on Textbook Page 65, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.
Answer:
The support that the US government gives to promote production of certain types of goods which are environment friendly are not justified. Different goods acquire unmerited competitive strength with each support measure. It adversely affects the producers of these commodities in the countries which import these goods, irrespective of whether they are environment friendly or not. If the developing countries raise trade barriers against such measure that hurt their market, then that will be quite appropriate measure.

Let’s Work These Out (NCERT Textbook page 67)

Question 1.
How has competition benefited people in India?
Answer:
Globalisation has brought competition among producers—both local and foreign producers. This competition has benefited people in India in a variety of ways:

• There is greater choice before these people (consumers) who now enjoy improved quality and lower prices for several products.
• As a result, these people today, enjoy much higher standards of living than was possible earlier.

Question 2.
Should more Indian companies emerge as MNCs? How would it benefit the people in the country?
Answer:

• Yes, more Indian companies should emerge as MNCs. This will help those companies in expanding their markets across the world. This will also create new job opportunities for Indians.
• Indian economy will become stronger which will be greatly beneficial for its citizens.

Question 3.
Why do governments try to attract more foreign investment?
Answer:
Governments try to attract more foreign investment because of the following reasons:

• Foreign investment helps in increasing economic activities.
• Increase in economic activities helps in employment generation.

Question 4.
In Chapter 1, we saw what may be development for one may be destructive for others. The setting of SEZs has been opposed by some people in India. Find out who are these people and why are they opposing it.
Answer:
(a) Special Economic Zones (SEZs) are being established at those places where the rural people or the tribals live. They are always afraid of being losing their livelihoods, which depend on land. The land is being acquired for setting up SEZs.

(b) The persons producing goods and services outside the SEZs are similar to those proposed inside the SEZs. They do not get the benefits and concessions being given to the producers inside the SEZs and so they will lose out in competition with them.

(c) It will cause severe damage to natural resources and environment.

Let’s Work These Out (NCERT Textbook page 68)

Question 1.
What are the ways in which Ravi’s small production unit was affected by rising competition?
Answer:
Ravi’s small production unit was affected by the rising competition in the following ways:
(i) The most important reason is that his customers have changed their product. Because they are now manufacturing TV sets for MNCs. They do not use the capacitors produced by the unit of Ravi.

(ii) The production and sales have also reduced. It is also due to his capacitors being costlier than the imported variety.

(iii) Ravi has produced less than half the capacitors. He cannot recover his cost with such a small amount of production. In future, he may have to close down his unit like his friends.

Question 2.
Should producers such as Ravi stop production because their cost of production is higher  compared to producers in other countries? What do you think?
Answer:
Yes, I think so. If the cost of production of Ravi’s product is higher in comparison to the production of ; other countries, then nobody will pay high cost to Ravi. His product will fail in the market. He will not be able to compete with other producers. Ravi will face difficulty in paying bank loan. So it will be a wise I step for him to stop production.

Question 3.
Recent studies point out that small producers in India need three things to compete better in the market
(a) better roads, power, water, raw materials, marketing and information network
(b) improvements and modernisation of technology
(c) timely availability of credit at reasonable interest rates.
(i) Can you explain how these three things would help Indian producers?
(ii) Do you think MNCs will be interested in investing in these? Why?
(iii) Do you think the government has a role in making these facilities available? Why?
(iv) Can you think of any other step that the government could take? Discuss.
Answer:
Better infrastructure will help them to work more timely and efficiently. Now they can compete with the foreign countries. If they get better technology, it will help them to manufacture better quality of products at reasonable rate. Timely availability of credit at reasonable interest rates will enable them to run their production in smooth way. It will also improve their competitiveness.

Multinational companies will not be interested in investing in these because the Indian producers will compete with them in the same market. It will reduce their market share.

The government has a major role to play in making these facilities available. It is also the responsibility of the government to provide better facilities to the producers. The government may stop much interference of red tapism. Corruption may be minimised in offices only by the interference of the government.

The government may provide single window clearance for people who want to set up industrial units. Now the entrepreneurs will not be harassed.

Let’s Work These Out (NCERT Textbook page 70)

Question 1.
In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?
Answer:
Competition has affected workers in many ways. Now the factory employs workers on a temporary basis so that they do not have to pay workers for the whole year. They employ them according to their need, season and demand. Their wages are very low and they are forced to work overtime to make both ends meet. Indian exporters are facing tough competition. To be in competition, they try hard to cut down the cost of production. Multinational companies bring good brands in the market at competitive rates.

Question 2.
What can be done by each of the following so that the workers can get a fair share of benefits brought by globalisation?
(a) government
(b) employers at the exporting factories
(c) MNCs
(d) workers.
Answer:
(a) Government: Government can make rules and regulations so that the workers can get a fair share of benefits brought by globalisation.

(b) Employers at the exporting factories can invest in new technology. It will help them in rising the cost of production.

(c) MNCs may provide relief to workers who have lost their jobs due to globalisation by giving financial aid. This will help them a lot till they get other employment.

(d) Workers: Workers will have to change their mentality. They will have to be more competitive. They will have to see themselves as equal partners with the management in pursuit of better productivity.

Question 3.
One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summarise the point of view of the
employers and workers.
Answer:
Do it yourself.

Economics Class 10 Chapter 4 NCERT Textbook Questions and Answers

Question 1.
What do you understand by globalisation? Explain in your own words.
Answer:
Globalisation means integrating an economy with the world economy. It encourages foreign trade, and foreign investment which leads to integration of production and markets across countries. Rapid improvement in technology has been one major factor that has stimulated the globalisation process. As a result of globalisation, it has become easier to move between countries. MNCs are playing a major role in the globalisation process.

More and more goods and services, investments and technology are moving. between countries. Most regions of the world are in closer contact with each other than a few decades back.In short, we can say that globalisation has made possible the interconnection between countries. As a result of globalisation, different countries of the world have become economically interdependent on each other.

Question 2.
What was the reason for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Answer:
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.

In 1991, the government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. So, it removed barriers on foreign trade and foreign investment.

Question 3.
How would flexibility in labour laws help companies?
Answer:
Flexibility in labour laws would help companies in the following ways:

• It would attract foreign investment.
• Earlier the companies in the organised sector had to obey certain rules that aimed to protect the workers’ rights. But now the government has allowed companies to ignore many of these rules.
• Instead of hiring workers on a regular basis, companies now hire workers flexibly for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company.

Question 4.
What are the various ways in which MNCs set up, or control, production in other countries?
OR
How do MNCs interlink production across countries? Explain with examples.
Answer:
(i) MNCs set up factories and offices for production in regions where they can get cheap labour and other resources. Countries like India, China, and Bangladesh provide best facilities for the MNCs.

(ii) At times, MNCs set up production jointly with some of the local companies of these countries. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can easily do so.

(iii) In fact, many of the top MNCs have wealth exceeding the entire budgets of the developing countries governments. With such enormous wealth, the MNCs exercise greater power and influence.

(iv) There is still another way in which MNCs control production. Big MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items etc. are some of the industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers.

Thus, by setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs control production in other countries.

Question 5.
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
Answer:
Developed countries want developing countries to liberalise their trade and investment because this will enable them to send their MNCs to set up factories and offices in the less-expensive developing countries. In this way, developed countries will earn huge profits, with lower manufacturing costs.

Liberalisation of trade and investment will also enable developed countries to buy raw materials from the developing countries without paying much tariff.

In my opinion, the developing countries should demand, in return, for protection of domestic producers against competition from imports. Also, MNCs should be made to pay for settling base in developing nations.

Question 6.
“The impact of globalisation has not been uniform.” Explain this statement.
OR
Analyse any five positive effects of globalisation on the Indian economy.
Answer:
(i) While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.

(ii) There is greater choice before well-off consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier.

(iii) MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks or services such as banking in urban areas. These products have a large number of well-off buyers. In these industries and services, new jobs have been created. The supply of raw materials, etc. by the local companies to these industries have flourished.

(iv) Many Indian companies have turned into MNCs. Tata Motors, Infosys, Ranbaxy, Asian Paints, etc. are some Indian companies which are spreading their operations worldwide.

(v) Several of the top Indian companies have been able to benefit from the rising competition due to globalisation. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.

(iv) But small producers and workers have faced tough times in the process of globalisation. They have been hit hard due to competition. Several of the manufacturing units have been shut down rendering many workers jobless. Uncertain employment and insecurity among workers have made their lives quite different. Thus, we can say that the impact of globalisation has not been uniform.

Question 7.
How has liberalisation of trade and investment policies helped the globalisation process?
OR
What is liberalisation? Describe any four effects of liberalisation on the Indian economy.
Answer:
Removing barriers or restrictions set by the government is called liberalisation. Liberalisation of trade and investment policies has boosted up the Indian economy and also the globalisation process.

(i) With liberalisation, barriers on foreign trade and foreign investment have been removed. This has helped in the import and export of goods. This means that goods can be exported and imported easily and also foreign companies could set up factories and offices here.
(ii) Businesses are now allowed to make decisions freely about what they wish to import or export.

(iii) Larger foreign investment and larger foreign trade have led to greater integration of production and markets across countries.

(iv) As a result, more and more companies are coming closer to each other due to MNCs.

Question 8.
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
Answer:
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. Producers can sell their products not only in markets located within the country but can also compete in markets located in other countries of the world too. Similarly, for the buyers, import of goods produced in another country expands the choice of goods beyond what is domestically produced. Japanese car in India and Indian ready made garments in other countries have resulted in connecting the markets in different countries. Thus, with the opening of trade between countries, goods travel from one market to another. This leads to integration of markets across countries.

Question 9.
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.
Answer:
After twenty years, world would undergo a massive change in positive direction. There will be healthy competition in the markets around the world. With improvement in productive efficiency, the volume of output will increase. This will lead to growth in income and employment. People will lead better living standards. Poverty will be hardly seen anywhere. Information and communication technology will be further boosted up. Some of the reasons for the views given above can be-

• Growing entrepreneurship among people of all classes
• Growing domestic markets
• Qualititative change in human resources.

Question 10.
Supposing you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments?
Answer:
So far my opinion is concerned, I glorify globalisation because it has undoubtedly helped India develop. With the coming of MNCs, India’s economy has grown to a great extent. Although unemployment is still there, it is not as intense as it was a few decades back. People’s affordability has improved with the increase in income. Availability of a large variety of goods at affordable prices is a major feature of globalisation. People today enjoy much higher standards of living than was possible earlier.

Question 11.
Fill in the blanks.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ………..(a)………. Markets in India are selling goods produced in many other countries. This means there is increasing ………..(b)………. with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because ………..(c)………. While consumers have more choices in the market, the effect of rising ………..(d)………. and ………..(e)……….has meant greater ………..(f)………. among the producers.
Answer:
a. globalisation
b. trade
c. of cheaper production costs
d. demands
e. purchasing powers
f. competition

Question 12.
Match the following:
(i) MNCs buy at cheap rates from small producers – a. Automobiles
(ii) Quotas and taxes on imports are used to regulate trade – b. Garments, footwear, sports items
(iii) Indian companies who have invested abroad – c. Call centres
(iv) IT has helped in spreading of production of services – d. Tata Motors, Infosys, Ranbaxy
(v) Several MNCs have invested in setting up factories in India for production – e. Trade barriers
Answer:
(i) (b)
(ii) (e)
(iii) (d)
(iv) (c)
(v) (a)

Question 13.
Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) good, services and investments between countries
(c) goods, investments and people between countries.
Answer:
(b) good, services and investments between countries

(ii) The most common route for investment by MNCs in countries around the word is to
(a) set up new factories.
(b) buy existing local companies
(c) form partnerships with local companies
Answer:
(b) buy existing local companies

(iii) Globalisation has led to improvement in living conditions
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above
Answer:
(d) none of the above

Additional Activity/Project

I. Take some branded products that we use everyday (soaps, toothpaste, garments, electronic goods, etc.). Check which of these are produced by MNCs.
Answer:
Do yourself.

II. Take any Indian industry or service of your choice. Collect information and photographs from newspapers, magazine clippings, books, television, internet, interviews with people on the following aspects of the industry.
(i) Various producers/companies in the industry
(ii) Is the product exported to other countries
(iii) Are there MNCs among the producers
(iv) Competition in the industry
(v) Conditions of work in the industry
(vi) Has there been any major change in the industry in the past fifteen years?
(vii) Problems that people in the industry face.
Answer:
Do it yourself.

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Money and Credit Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Money and Credit Class 10 Questions and Answers Economics Chapter 3

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 3 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 3 Questions and Answers helps students to attempt the exam with confidence.

Money and Credit NCERT Intext Questions and Answers

Let’s Work These Out (NCERT Textbook page 40)

Question 1.
How does the use of money make it easier to exchange things?
Answer:
The use of money makes it easier to exchange things because it is accepted as a medium of exchange. It serves as a unit of value and solves the problem of double coincidence of wants.

Question 2.
Can you think of some examples of goods/services being exchanged or wages being paid through barter?
Answer:
In rural areas usually foodgrains are exchanged for other crops in some cases. In urban areas, goods or services are not usually exchanged. Yes, in some government schemes, labourers are paid not in cash but in kind, for example, 7 kg of wheat for a day’s work.

Let’s Work These Out (NCERT Textbook page 42)

Question 1.
M. Salim wants to withdraw ₹ 20,000 in cash for making payments. How would he write a cheque to withdraw
Answer:

Question 2.
Tick the correct answer.
After the transaction between Salim and Prem,
(i) Salim’s balance in his bank account increases, and Prem’s balance increases.
(ii) Salim’s balance in his bank account decreases and Prem’s balance increases.
(iii) Salim’s balance in his bank account increases and Prem’s balance decreases.
Answer:
(ii) Salim’s balance in his bank account decreases and Prem’s balance increases.

Question 3.
Why are demand deposits considered as money?
Answer:
Demand deposits are considered as money because they can be withdrawn when required and the money withdrawn can be used for making payments.

Let’s Work These Out (NCERT Textbook page 44)

Question 1.
Fill the following table.
Answer:

Question 2.
Supposing Salim continues to get orders from traders. What would be his position after 6 years?
Answer:
He can make good profits from the sales of shoes and can use these profits to finance his future business. In due course of time, he would become well-off or self-dependent and would stop borrowing money from any source of credit.

Question 3.
What are the reasons that make Swapna’s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.
Answer:
Swapna is a small farmer. Being unable to meet the expenses of cultivation, she takes a loan from the moneylender. In the beginning she was very hopeful. Unfortunately the crop fails being hit by pests. Though Swapna sprays her crops with expensive pesticides, it makes little difference. Finally she fails to repay the moneylender.

The moneylender proves to be an unkind man. He charges high interest rates as a result of which Swapna falls in debt. Next year she again takes loan. Although she gets a normal crop this year, the earnings are not enough to cover the previous loan. Hence, she sells a part of the land to pay off the debt.

The climate is a major factor in worsening Swapna’s condition. Had it favoured her, she would not have fallen in debt trap.

Let’s Work These Out (NCERT Textbook page 45)

Question 1.
Why do lenders ask for collateral while lending?
Answer:
If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. It is, therefore, lenders ask for collateral while lending.

Question 2.
Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?
Answer:
Since the poor lack collateral to offer, so they have low capacity to borrow. They usually do not go to banks or cooperatives to get loan. Instead, they take loans from moneylenders, friends, relatives, etc.

Question 3.
Fill in the blanks choosing the correct option from the brackets:
While taking a loan, borrowers look for easy terms of credit. This means …………… (a) ……………..  (low/high) interest rate ……… (b)………..  (easy/tough) conditions for repayment ……………… (c)…………….  (less/more) collateral and documentation requirements.
Answer:
(a) low
(b) easy
(c) less.

Let’s Work These Out (NCERT Textbook page 47)

Question 1.
List the various sources of credit in Sonpur.
Answer:
The various sources of credit in Sonpur are-

• Village moneylender
• Traders
• Landowner as moneylender
• Commercial banks
• Krishak cooperative society

Question 2.
Underline the various uses of credit in Sonpur in the passage given on (Textbook page 47).
Answer:
Loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, etc.

Question 3.
Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.
Answer:

Question 4.
Why will Arun have a higher income from cultivation compared to Shyamal?
Answer:
(i) Arun has seven acres of land. He gets bank loan for cultivation at an interest rate of 8.5 per cent per annum. Shyamal, on the other hand, gets loan from the village moneylender at a rate of interest 5 per cent per month (60% per annum).

(ii) Arun has the capacity to repay the loan to the bank. He even plans to repay the loan after the harvest and applies for a fresh loan from the bank. But Shyamal lacks this capacity. What is more, he is bound to sell his produce to the moneylender who gives a low price.

(iii) Arun is free to sell his produce at market rates but Shyamal is not. These are the reasons why Arun has a higher income from cultivation as compared to Shyamal.

Question 5.
Can everyone in Sonpur get credit at a cheap rate? Who are the people who can?
Answer:
No. Everyone in Sonpur cannot get credit at a cheap rate. However, there are some people who can get loan on cheaper interest rate such as people having land or other asset, members of cooperative society, etc.

Question 6.
Tick the correct answer.
(i) Over the years, Rama’s debt
(a) will rise
(b) will remain constant
(c) will decline

(ii) Arun is one of the few people in Sonpur to take a bank loan because
(a) other people in the village prefer to borrow from the moneylenders.
(b) banks demand collateral which everyone cannot provide.
(c) interest rate on bank loans is same as the interest rate charged by the traders.
Answer:
(a) will rise
(b) banks demand collateral which everyone cannot provide.

Question 7.
Talk to some people to find out the credit arrangements that exist in your area. Record your conversation. Note the differences in the terms of credit across people.
Answer:
Do yourself.

Let’s Work These Out (NCERT Textbook page 50)

Question 1.
What are the differences between formal and informal sources of credit?
Answer:
The differences between formal and informal sources of credit are given below

Question 2.
Why should credit at reasonable rates be available for all?
Answer:
Credit at reasonable rates should be available for all to enable the poor to get cheaper loans. Usually they avoid loans due to high rate of interest. If cheaper loans are available for them, they will improve their condition by dint of this facility.

Question 3.
Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult?
Answer:
Yes. There should be a supervisor for looking into the loan activities of informal lenders. Its task is quite difficult because informal sector constitutes many people such as moneylenders, friends, relatives, traders, etc. These people are involved in different kinds of businesses of their own besides lending. Also, they are not registered with the government.

Question 4.
Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?
Answer:
The share of formal sector credit is higher for the richer households compared to the poorer households because richer households have better capacity to repay the loans within given frame of time. Also, they have collateral and other necessary documents which are required by the banks and cooperatives. Poor people usually lack collateral or other assets.

Economics Class 10 Chapter 3 NCERT Textbook Questions and Answers

Question 1.
In situations with high risks, credit might create further problems for the borrower. Explain.
Answer:
It is true that in situations with high risks, credit might create further problem for the borrower. This can be better understood with an example. Suppose a small farmer takes a loan from a moneylender at a high rate of interest to meet the expenses of cultivation, hoping that his/her harvest would help repay the loan. Midway through the season, his/her crop is ruined due to pests or scanty rainfall. In such a situation the poor farmer fails to repay the moneylender and debt grows over the year into a large amount.

Next year the farmer takes a fresh loan for cultivation. Although this year he/she gets a normal crop, his/her earnings are still not enough to cover the previous loan. This pushes him/her into debt. To get out of it, he/she sells a part of the land. Credit in this case creates a situation from which recovery is very painful for the borrower.

Question 2.
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Answer:
In the barter system, commodities are exchanged with commodities without the use of money. In this type of exchange, both parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. Money solves the problem of double coincidence of wants by acting as a medium of exchange. A person holding money in hand can easily exchange it for any commodity or service that he/she wants.

We can better understand it with an example. Suppose a green grocer wants a mobile phone but the owner of the mobile phone wants a wrist watch. In such a situation, the green grocer can use money to get the mobile phone. In the same way, the mobile phone owner too will use money to get the wrist watch. Both parties are independent to buy the things of their need because both have money. In this way, money solves the problem of double coincidence of wants.

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

• People having surplus money, deposit it with the banks by opening a bank account in their name. Banks keep only a small proportion of their deposits as cash with themselves.
• They (banks) use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities.
• Banks fulfil people’s loan requirements by using these deposits. In this way, they mediate between those who have surplus money and those who are in need of this money.

Question 4.
Look at a 10 rupee note. What is written on top? Can you explain this statement?
Answer:
A 10 rupee note has ‘RESERVE BANK OF INDIA’ written on the top, followed by a statement ‘GUARANTEED BY THE CENTRAL GOVERNMENT.’

What this means is that the Reserve Bank of India or RBI has been authorised by the Central Government to issue 10 rupee note. Without this authority given by the Central Government the 10 rupee note is mere a piece of paper and nothing more than that.

In India, the Reserve Bank of India issues currency notes on behalf of the Central Government. As per Indian law, no other individual or organisation is allowed to issue currency. Moreover, the statement on the 10 rupee note makes it clear that the RBI is the central organ in the working of money-related activities.

Question 5.
Why do we need to expand formal sources of credit in India?
Answer:
Compared to the formal lenders which include banks and cooperatives, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher.

Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan. Hence, borrowers have less income left for themselves. In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower. This could lead to increasing debt and debt trap. For these reasons, banks and cooperative societies need to lend more. This would lead to higher income and many people could then borrow cheaply for a variety of needs.

Question 6.
What is the basic idea behind the SHGs for the poor? Explain in your own words.
Answer:
(i) The basic idea behind the Self Help Groups or SHGs is meant to create self- employment opportunities for the rural poor.

(ii) The SHGs help borrowers overcome the problem of lack of collateral. They can get timely loans for a variety of purposes and at a reasonable interest rate.

(iii) Moreover, the SHGs are the building blocks of organisation of the rural poor. Not only does it help women to become financially self-reliant, the regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, 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 to certain borrowers because of the following reasons
(i) Bank loans require proper documents and collateral. A number of borrowers don’t possess any-thing which they can use as collateral.

(ii) The main demand for loans is for crop production. Repayment of the loan is crucially dependent on the income from farming which is highly uncertain.

(iii) There are high risks in agricultural sector. No one can say with guarantee that the crop will be good or it will be ruined. And if the crop is ruined, the farmer will not be able to repay the loan. That is why banks have no interest to lend to such borrowers who lack collateral.

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 supervises the functioning of banks in the following ways-
(i) We know that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance.

(ii) The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, small borrowers, etc. Periodically, banks have to submit information to the RBI on how much they are lending, to whom at what interest rate, etc.

(iii) This supervision acts as a check on the banks. The RBI makes sure that banks do not loan out more money than they are supposed to. This is important to avoid crisis situations.

Question 9.
Analyse the role of credit for development.
Answer:
(i) A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit means loan which the borrower gets from the lender in the form of money, goods or services in return for the promise of future payment.

(ii) Credit can play a vital and positive role in a certain situation. Suppose a small businessman obtain credit to expand his business. If he gets success in his goal and makes a good profit, he will repay the money in time that he had borrowed.

(iii) He will then spend the surplus money in expanding his business. If this continues for a few years, he will become an established businessman. Here, credit helps to increase earnings and therefore the person is better off than before.

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:
(i) If Manav has a collateral or some other asset, he can get a loan from the bank. If he lacks such an asset, he will have to move to a moneylender.

(ii) Getting a loan from a bank is time consuming and a little bit difficult too. If Manav is in hurry, he won’t waste time and will go to a moneylender even though the latter charges a higher interest rate.

(iii) If Manav needs a loan for a short time period, he will definitely prefer a money lender. If he needs a loan for a long period, he will go to the bank.

Question 11.
In India, about 80 per cent of farmers are small farmers, who need credit for 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 how the terms of credit can be unfavourable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
Answer:
(a) Banks might be unwilling to lend to small farmers because of two reasons

• Small farmers usually lack collateral or any other asset.
• Repayment of the loan is crucially dependent on the income from farming. Needless to say that income from farming is highly uncertain.

(b) The other sources from which the small farmers can borrow are—moneylenders, traders, employers, relatives and friends, etc.

(c) Swapna took a loan from a moneylender to meet the expenses of cultivation, hoping that her harvest would help repay the loan. But the failure of crop made loan repayment impossible. She had to sell a part of the land to repay the loan. Credit, instead of helping Swapna improve her earnings, left her worse off. Credit in this case pushes the borrower into a situation from which recovery is very painful.

(d) Small farmers can form their own cooperatives to get cheap loans from them and that without any asset.

Question 12.
Fill in the blanks.
(i) Majority of the credit needs of the …………….. households are met from informal sources.
(ii) …………………. costs of borrowing increase the debt-burden.
(iii) ……………………. issues currency notes on behalf of the Central Government.
(iv) Banks charge a higher interest rate on loans than what they offer on……………
(v) …………………… is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
Answer:
(i) poorer
(ii) High
(iii) The Reserve Bank of India
(iv) deposits
(v) Collateral

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

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

Additional Project/Activity
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.

Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
Answer:
Do it yourself.

Hope the data shared above regarding the NCERT Class 10 Social Science Economics Chapter 3 Money and Credit PDF has aided in your exam preparation. If you ever need any assistance you can always reach us and our team will guide you at the soonest possibility.

Sectors of Indian Economy Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Economics Chapter 2 Sectors of Indian Economy familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Sectors of Indian Economy Class 10 Questions and Answers Economics Chapter 2

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 2 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 2 Questions and Answers helps students to attempt the exam with confidence.

Sectors of Indian Economy NCERT Intext Questions and Answers

Let’s Work These Out (NCERT Textbook page 21)

Question 1.
Complete the table given below to show how sectors are dependent on each other.
Answer:

Question 2.
Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
Answer:

Question 3.
Classify the following list of occupations under primary, secondary and tertiary sectors

Answer:

Question 4.
Students in a school are often classified into primary and secondary or junior and senior. What is the criterion that is used? Do you think this is a useful classification? Discuss.
Answer:
The criterion used in schools is

• Students from grade I to V are placed into primary level and we often call them junior students.
• Students from grade VI to X are placed into secondary level and we call them senior students.

The classification based on this criterion is very useful. We know that students belonging to primary level need more attention of the teachers. They also need involvement in extra-curricular activities. The teachers recruited for the primary students need a good amount of patience, skill etc. On the other hand, we find secondary level students more mature who need precious guidance from their teachers while studying in the class.

Let’s Work These Out (NCERT Textbook page 23)

Question 1.
What does the history of developed countries indicate about the shifts that have taken place between sectors?
Answer:
The history of developed countries indicate that at initial stages of development, primary sector was the most important sector of economic activity.
With the change of farming methods, agriculture prospered and people in large number took up other activities like buying and selling, etc. Besides, there were also transporters, administrators, etc. However, at this stage, most of the goods produced were natural products from the primary sector and most people were also employed in this sector.

Gradually, new methods of manufacturing were introduced. As a result, factories came up and started expanding. Those people who had earlier worked on farms now began to work in factories. Thus, secondary sector became the most important in total production and employment.

A further shift from secondary to tertiary sector took place in developed countries in the past 100 years. And with it, the service sector has became the most important in terms of total production and employment.

Question 2.
Correct and arrange the important aspects for calculating GDP from this jumble.
To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.
Answer:
To count goods and services we add the numbers that are produced. Since we shouldn’t leave out anything we add up all these goods and services. We count all those that were produced in the last five years.

Let’s Work These Out (NCERT Textbook page 24)

Answer the following questions by looking at the graph:
1. Which was the largest producing sector in 1970-71?
2. Which is the largest producing sector in 2010-11?
3. Can you say which sector has grown the most over forty years?
4. What was the GDP of India in 2011?
Answer:
1. The primary sector was the largest producing sector in 1970-71.
2. The tertiary sector is the largest producing sector in 2010-11.
3. It is definitely the tertiary sector.
4. The GDP of India in 2011 was ₹ 5000000 crore.

Let’s Work These Out (NCERT Textbook page 27)

Question 1.
Complete the table using the data given in Graphs 2 and 3 on (Textbook Page 25) and answer the question that follows

What are the changes that you observe in the primary sector over a span of forty years?
Answer:

We observe that the share of primary sector in GDP and employment has decreased considerably over a span of forty years.

Question 2.
Choose the correct answer:
Underemployment occurs when people
(i) do not want to work
(ii) are working in a lazy manner
(iii) are working less than what they are capable of doing
(iv) are not paid for their work.
Answer:
(iii) are working less than what they are capable of doing

Question 3.
Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer:
The history of the developed countries shows that the primary sector was the most important sector of economic activity in its initial stages of development. Most people were employed in this sector. However, this trend changed with the coming up of factories. As a result, employment shifted to secondary sector and then to tertiary sector with the growth of economy. Thus, the shift has been on the expected line in developed countries.

But this is not the case with India. Here also the employment shifted from primary to secondary and then to tertiary sector but as secondary sector failed to absorb the expected number of people, tertiary sector emerged as a great employer. It means that tertiary sector employs more people than secondary sector but not more than primary sector. The primary sector continues to be the largest employer even now.

It was desired that the change that occurred in developed countries should have taken place in India too i.e. shift of employment from primary to secondary and then to tertiary sector. But the reality is that the share of employment is still highest in the primary sector. This is the result of slow pace of industrial growth and urbanisation in India.

Question 4.
Why should we be worried about unemployment?
Answer:
Unemployment is one of the greatest curses for human beings. It is the root of many evils such as theft, pick-pocketing, etc. People facing this problem easily get indulged in unsocial activities. They think negatively and create nuisance wherever they go. Sometimes, they show their anger against the system by participating in vandalism. Thus, their productivity becomes zero which is very unfortunate for a country. It is said that if we want to establish peace in society, each and every citizen of the country must be given employment. Employment saves us from many evils.

Let’s Work These Out (NCERT Textbook page 29)

Question 1.
Why do you think NREGA 2005 is referred to as ‘Right to Work’?
Answer:
NREGA 2005 aims at enhancing the livelihood security of people in rural areas by making a guarantee for 100 days of employment in a year to a rural household whose adult members are willing to do unskilled labour. Since this Act is based on the idea that everyone has a right to get employed for livelihood, so it is referred to as ‘Right to Work’.

Question 2.
Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people. Discuss.
Answer:
Some of the activities are given below-

• Opening a cold storage
• Setting up dal mills
• Setting up honey-collection centres close to forest areas
• Setting up industries that process vegetables and agricultural produce like potato, rice, wheat, etc. which can be sold in outside markets.
• Constructing dams and digging canals.
  These activities would definitely increase the income of village people.

Question 3.
How would income and employment increase if farmers were provided with irrigation and marketing facilities?
Answer:
There are many farmers in India who don’t have irrigation facilities. Having plots of un-irrigated lands, they face a lot of problems. The government can spend some money or banks can provide loans, to construct wells for such farmers. Farmers will then be able to irrigate their lands and get a good harvest. This will increase their income to a great extent. Once the farmers get a good havest, they would need to sell some of this. For this, they would like to be provided with better marketing facilities. Availability of markets in close vicinity would enable them to sell their crops at a favourble price.

Question 4.
In what ways can employment be increased in urban areas?
Answer:
In urban areas, employment can be increased in the following ways:

• By setting up factories/industries
• By making investments in foreign companies
• By setting up educational institutions where they are required
• By providing loans to people who are interested in starting their own business
• By improving means of transport and communication
• By encouraging tourism or regional craft industry
• By promoting new services like IT. The electronics industry today has become a great employer in big cities like Bengaluru, Hyderabad, Pune, Chennai, etc.

Let’s Work These Out (NCERT Textbook page 31)

Question 1.
Look at the following examples. Which of these are unorganised sector activities?
(i) A teacher taking classes in a school
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her field
(iv) A doctor in a hospital treating a patient
(v) A daily wage labourer working under a contractor
(vi) A factory worker going to work in a big factory
(vii) A handloom weaver working in her house.
Answer:
The following are unorganised sector activities:
(i) A headload worker carrying a bag of cement on his back in a market.
(ii) A farmer irrigating her field
(iii) A daily wage labourer working under a contractor
(iv) A handloom weaver working in her house.

Question 2.
Talk to someone who has a regular job in the organised sector and another who works in the unorganised sector. Compare and contrast their working conditions in all aspects.
Answer:
Do it yourself.

Question 3.
How would you distinguish between organised and unorganised sectors? Explain in your own words.
Answer:

Question 4.
The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.

(a) What is the percentage of people in the unorganised sector in agriculture?
(b) Do you agree that agriculture is an unorganised sector activity? Why?
(c) If we look at the country as a whole, we find that ………. (i)………… % of the workers in India are in the unorganised sector. Organised sector employment is available to only about ………………(ii)………… % of the workers in India.
Answer:

(a) 93% people are working in the unorganised sector.
(b) I do agree to this fact. A large number of landless agricultural labourers, small and marginal farmers, and casual workers, are engaged in this sector and earn a very little income. Since there is heavy competition for work among the farm labourers, so they agree to work for lower wages. These people do not work regularly. They are busy during the time of sowing and harvesting and become jobless after these activities are over.
(c) (i) 93% (ii) 7%

Economics Class 10 Chapter 2 NCERT Textbook Questions and Answers

Question 1.
Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service …………….. sector increased to the same extent as productions, (has/has not)
(ii) Workers in the ………….. sector do not produce goods. (tertiary/agricultural)
(iii) Most of the workers in the ………………. sector enjoy job security. (organised/unorganised)
(iv) A …………… proportion of labourers in India are working in the unorganised sector. (large/small)
(v) Cotton is a ……………. product and cloth is a ………….. product. (natural/manufactured)
(vi) The activities in primary, secondary and tertiary sectors are ……….. (independent/interdependent)
Answer:
(i) has not
(ii) tertiary
(iii) organised
(iv) large
(v) natural, manufactured
(vi) interdependent

Question 2.
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
Answer:
(iii) ownership of enterprises

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

(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
Answer:
(ii) all final goods and services

(d) In terms of GDP the share of tertiary sector in 2010-11 is ………..
(i) between 20 to 30 per cent
(ii) between 30 to 40 per cent
(iii) between 50 to 60 per cent
(iv) 70 per cent
Answer:
(iii) between 50 to 60 per cent

Question 3.
Match the following:

Answer:
1. (d)
2. (c)
3. (e)
4. (a)
5. (b)

Question 4.
Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio
Answer:
(i) Tourist guide. Unlike others he is working in an organised sector and is usually appointed by the government.
(ii) Vegetable vendor. He is an unskilled person without a formal education whereas doctor, lawyer and teacher are skilled and educated persons.
(iii) Cobbler. He is self-employed while others are government servants.
(iv) SAHARA Airlines. It comes under the private sector whereas the rest are government undertakings.

Question 5.
A research scholar looked at the working people in the city of Surat and found the following. Complete the table. What is the percentage of workers in the unorganised sector in this city?

Answer:

70% people are working in the unorganised sector in the city of Surat.

Question 6.
Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer:
Yes. The classification of economic activities into primary, secondary and tertiary is useful because of the following reasons:

• It provides information on how and where the people of a country are employed.
• It also helps in ascertaining as to which sector of economic activity contributes how much to the country’s GDP and per capita income. Thus, we come to know which sector is growing and which sector is lagging behind.
• Once it becomes clear, the government takes measures to promote that sector which is lagging behind. Thus, rectification is possible due to this classification.
• This classification also acknowledges us that all the three sectors are not independent but interdependent.

Question 7.
For each of the 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:
A focus on employment and GDP helps to determine per capita income and productivity in a country. In each of the three sectors, employment rate and status as well as its contribution to the GDP help us know how that particular sector is functioning and what needs be to done to bring further growth in it. Other issues which should be examined are:

• How to uproot poverty?
• What can be done to modernise technology?
• How to achieve food security in the country?
• How to upgrade educational standard and health of the people?

Question 8.
Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer:
The activities in which adults around us are engaged in are— farming, manufacturing, lawyer, washerman, cobbler, weaving, hair cutting, financing, transportation, street vending, teaching, carpentry, moneylending, courier, call centre employee, engineer, dairy, fishing, forestry, growing cotton, etc. These activities can be classified as follows:

• Primary sector — farming, dairy, growing cotton, forestry, fishing.
• Secondary sector – manufacturing.
• Tertiary sector – hair cutting, finance, transportation, street vending, teaching, moneylending, courier, call centre employee, engineer, lawyer, washerman, cobbler

Question 9.
How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer:
The tertiary sector is different from primary and secondary sectors. The activities that fall under this
sector are those that help in the development of other two sectors. These activities, by themselves, do not produce a good but they are a support for the production process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops.

At times, it may be necessary to store these in godowns. We may also need to talk to others over telephone or send letters or borrow money from banks to help production and trade. Thus, transport, storage, communication, banking and trade are examples of tertiary activities. Unlike other sectors, these activities generate services rather than goods. This is the reason why the tertiary sector is also known as the service sector.

Question 10.
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 is also known as hidden unemployment. In such a situation, more people are engaged in a work than required.

Example from rural areas
In rural areas, this type of unemployment is generally found in agriculture where more people (for example, 9 people) are engaged in the same agricultural plot than is necessary. So, even if a few people (for example, 3 people) are withdrawn from it, production will not be affected. These three people are actually disguisedly employed.

Example from urban areas
In urban areas, this type of unemployment is generally seen in service sectors where many casual workers search for daily employment. They are employed as painters, plumbers, etc. Many of them don’t find work everyday. Thus, they earn very little in comparison to their potential.

Question 11.
Distinguish between open unemployment and disguised unemployment.
Answer:
Open unemployment is different from disguised unemployment in the following ways:

Question 12.
“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:
No, I do not agree to this point. The truth is that tertiary sector is playing a very significant role in the development of Indian economy. Over forty years between 1970-71 and 2010-11, while production in all the three sectors has increased, it has increased the most in the tertiary sector which ultimately boosts up Indian economy. The reasons behind it are-

(i) Tertiary sector helps in the development of the primary and secondary sectors by providing them services like transportation, storage, banking, communication, etc. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these in godowns.

(ii) Over the past decade or so, certain new services such as those based on information technology have become important and essential. The production of these services has been rising rapidly. As a result, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2010-11.

(iii) As income levels rise, certain sections of people especially in big cities, start demanding many more services like eating out, tourism, shopping, private hospitals, etc. This trend has contributed vastly to the Indian economy.

Question 13.
Service sector in India employs two different kinds of people. Who are these?
Answer:
Service sector in India employs two different kinds of people. They are
(i) The people involved in the services that may directly help in the production of goods. For example, shopkeepers, transport person, repair persons, etc. These people are not highly educated and barely manage to earn a living.

(ii) The people involved in such services that may not directly help in the production of goods e.g. teachers, engineers, doctors, barbers, cobblers, etc. They are either highly educated or highly skilled and give services to the primary service providers.

Question 14.
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer:
Yes, I agree with this view. Workers in unorganised sector are exploited in many ways:

• Since there is no fixed number of working hours, so that workers have to work 10-12 hours without paid overtime.
• They do not get paid leave, payment during holidays, provident fund, gratuity, etc.
• Their jobs are low-paid and often not regular.
• Employment is not secure. Workers can be asked to leave without any reason.
• Government rules and regulations to protect the labourers are not followed in unorganised sectors,
• Workers do not avail medical benefits. There is also no provision of leave due to sickness.
  Since workers in unorganised sectors are usually ignorant due to lack of education, so they are easily exploited by their employer.

Question 15.
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-
(i) Organised sector, and
(ii) Unorganised sector
(i) Organised sector: This sector covers those enterprises or places of work which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd.

(ii) Unorganised sector: This sector includes those small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. For example, workers in the garment factory, shops, etc.

Question 16.
Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer:
Answer:

Question 17.
Explain the objective of implementing the NREGA 2005.
Answer:
The objectives of implementing the NREGA 2005 include —

• To provide at least 100 days employment to the adult members of each family living in rural areas who are willing to do unskilled labour.
• To create permanent assets in rural areas.
• To develop tourism, regional craft industry, or new services like IT, etc. to increase income and employment for people.

Question 18.
Using examples from your area compare and contrast the activities and functions of private and Private Sector
Answer:

Question 19.
Discuss and fill the following table giving one example each from your area.

Answer:

Question 20.
Give a few examples of public sector activities and explain why the government has taken them up.
Answer:
A few examples of public sector activities include provision of water, electricity, healthcare, transport, schools and colleges, etc. The government plays a major role in providing all these facilities to all without any discrimination at a reasonable cost. If private companies are given the responsibility to provide these public facilities, they will charge more. In such a situation, only a few people can afford to avail them while a large section of people will have to face problems due to non-availability of the essential items at subsidised rates. Hence, to ensure that basic amenities like water, power, etc. are available for all, the government supplies these at low rates for the welfare of the large public.

Question 21.
Explain how public sector contributes to the economic development of a nation?
Answer:
The public sector contributes to the country’s economic development in the following ways:

• It creates employment opportunities by initiating construction of roads, national highways, flyovers, metro-rails, etc.
• It promotes rapid economic development through creation and expansion of infrastructure.
• It plays an important role in industrial growth of the country by supplying electricity at subsidised rates.
• It plays vital role in contributing to the Human Development Index by giving attention to health and education services.
• It encourages development of small, medium and cottage industries to ensure livelihood among the low-income group.
• Transportation occupies an important place in the economy of a country. Hence, the government makes all efforts to keep this facility well-maintained.

Question 22.
The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
Answer:
Wages: Workers in the unorganised sector are often exploited by their employer in terms of low wages. As per Minimum Wages Act, they must be given fair wages.

Safety: Safety of jobs must be there because poor workers are usually asked to leave without any reason. When there is less work in off season, the employer forces some of the workers to leave at once. This should be stopped in the interest of the poor workers.

Health: Health of the poor workers are always ignored in the unorganised sector. They are forced to work long hours in unhygienic conditions. As they have no option, they continue to work at the cost of their health. As a result, they become victims of many diseases. These workers need protection.

Question 23.
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 Regular ₹ 60,000 million. Out of this ₹ 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought for generating more employment in the city?
Answer:

In order to generate more employment in the city the state government should increase vacancies in different departments. Also more and more companies should be brought under organised sector for the benefit of the workers. The government can help by providing loans and aid to companies transferring from unorganised to organised sectors.

Question 24.
The following table gives the GDP in Rupees (Crores) by the three sectors:

(i) Calculate the share of the three sectors in GDP for 1950 and 2011.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter
(iii) What conclusions can we draw from the bar graph?
Answer:
(i) In 1950
Share of sectors in GDP for the year 1950
Total GDP of three sectors (in 1950 ) = 80,000 + 19,000 + 39,000
= 1,38,000 crores

In 2011
Share of sectors in GDP for the year 2011
Total GDP of three sectors (in 2011) = 8,18,000 + 12,49,000 + 28,18,000

(ii)

(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has almost doubled. On the other hand, the share of the primary sector has almost halved. The secondary sector has grown just by 10%. The trend shows that the tertiary sector has emerged as the largest producing sector in India replacing the primary sector.

Hope the data shared above regarding the NCERT Class 10 Social Science Economics Chapter 2 Sectors of Indian Economy PDF has aided in your exam preparation. If you ever need any assistance you can always reach us and our team will guide you at the soonest possibility.

Development Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Economics Chapter 1 Development familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Development Class 10 Questions and Answers Economics Chapter 1

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 1 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 1 Questions and Answers helps students to attempt the exam with confidence.

Development NCERT Intext Questions and Answers

Let’s Work These Out (NCERT Textbook page 6)

Question 1.
Why do different persons have different notions of development? Which of the following explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.
Answer:
Explanation (b) is more important than explanation
(a) because life situations affect the way an individual thinks about development. What may be development for one person may not be development for the other. It all depends on the situations in which he lives.

Question 2.
Do the following two statements mean the same? Justify your answer.
(a) People have different developmental goals.
(b) People have conflicting developmental goals.
Answer:
No, the above two statements do not mean the same.
(a) When we say that people have different developmental goals it means they seek different things. They seek things that are most important for them, i.e. that which can fulfil their aspirations or desires.

(b) At times, two persons may seek things which are conflicting. For example, a girl expects as much freedom and opportunity as her brother, and that he also shares in the household work. Her brother may not like this.

Question 3.
Give some examples where factors other than income are important aspects of our lives.
Answer:

• Freedom
• Sense of security
• Equal treatment
• Respect of others
• Good working atmosphere
• Protection from infectious diseases.

If one gets a job in a far off place, before accepting it one would try to consider many factors, apart from income such as facilities for one’s family, working atmosphere or opportunity to learn, etc.

Question 4.
Explain some of the important ideas of the above section in your own words.
Answer:
For self-attempt.

Let’s Work These Out (NCERT Textbook page 7)

Discuss the following situations:

Question 1.
Look at the picture on the right given on Textbook Page 7. What should be the developmental goals for such an area?
Answer:
From the picture, it seems that it is in the outskirt of the town. There must be the connectivity of roads, availability of water, electricity, schools, market places and a police check post for the safety of public.

Question 2.
Read this newspaper report and answer the question that follow:
A vessel dumped 500 tonnes of liquid toxic wastes into open-air dumps in a city and in the surrounding sea. This happened in a city called Abidjan in Ivory Coast, a country in Africa. The fumes from the highly toxic waste caused nausea, skin rashes, fainting, diarrhoea, etc. After a month seven, persons were dead, twenty in hospital and twenty six thousand treated for symptoms of poisoning. A multinational company dealing in petroleum and metals had contracted a local company of the Ivory Coast to dispose the toxic waste from its ship.
(i) Who are the people who benefitted and who did not?
(ii) What should be the developmental goal for this country?
Answer:
(i) Those who were in position to avail good facilities got benefitted and the people of lower income group did not get much benefit.
(ii) The developmental goal for this country should be health facilities, good environment, establish¬ment of factories for generating employment and the facilities of home for the homeless.

Question 3.
What can be some of the developmental goals for your village, town or locality?
Answer:
The developmental goals for village, town or locality should be:

• Road and rail connectivity
• Good transportation system
• Sanitation facilities
• Pure and safe drinking water
• Schools
• Hospitals, etc.

Let’s Work These Out (NCERT Textbook page 9)

Question 1.
Give three examples where an average is used for comparing situations.
Answer:
An average is used for comparing

• income of people of a country
• health of the students of a class
• talent of the students of a class.

Question 2.
Why do you think average income is an important criterion for development? Explain.
Answer:
Income i.e. money enables us to buy things of our needs including the basic necessities of life. We can fulfil our desires and be able to do what we wish for only with the help of our income. More income means more of all things that we need. Whatever we like and should have, we will be able to get with greater income. If the average income of a country is on a higher side, it will definitely stand ahead on development index. Hence, average income can be an important criterion for development.

Question 3.
Besides size of per capita income, what other property of income is important in comparing two or more societies?
Answer:
Besides size of per capita income, other important property of income is equality in people’s purchasing power. Purchasing power parity shows the ability of people to purchase items of their requirement which are taken for comparison.

Question 4.
Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example.
Answer:
Increase in the average income in a country cannot be a guarantee of overall progress of the economy. The data of Maharashtra and Kerala show that there are other factors which also need to be analysed before arriving at a conclusion. These factors include infant mortality rate, literacy rate, proper health facilities, etc.

Question 5.
From the text, find out the per capita income level of low-income countries as per World Development Reports.
Answer:

• Sri Lanka – $ 4390
• India – $ 3139
• Pakistan – $ 2225

Question 6.
Write a paragraph on your notion of what should India do, or achieve, to become a developed country.
Answer:
India is a vast country with a large population. Although it has been doing well since its Independence, it needs much more to achieve to become a developed country. The country still lags behind on several parameters of human development such as life expectancy, infant mortality, and literacy rate. The absolute number of infants who die before completing one year is very high. This shows that there is no proper facilities for healthcare, drinking water, sanitation and nutrition in our country. A great number of our children are victims of malnutrition. In rural India, the situation is worse. Hence, India needs to develop facilities to improve on these parameters, to become a developed country.

Let’s Work These Out (NCERT Textbook page 12)

Question 1.
Look at data in Table 1.3 and 1.4 on Textbook Page 10. Is Maharashtra ahead of Bihar in literacy rate, etc. as it is in terms of per capita income?
Answer:
Yes; Maharashtra is far ahead of Bihar in both these parameters. Literacy rate in Maharashtra is 82% while it is only 62% in Bihar as per the census of 2011. In terms of per capita income, Maharashtra is again far ahead of Bihar. It is ₹ 1,07,670 in Maharashtra while ₹ 28, 772 in Bihar.

Question 2.
Think of other examples where collective provision of goods and services is cheaper than individual provision.
Answer:
In factories/industries, in manufacturing, in agriculture etc. we find collective provision of goods and services cheaper than individual provision.

Question 3.
Does availability of good health and educational facilities depend only on amount of money spent by the government on these facilities? What other factors could be relevant?
Answer:
No. It does not depend only on amount of money spent. Although it is a major factor, other factors also play an important role in it. These factors include availability of required number of doctors and quality of medicines in case of health facilities. In education, a good number of qualified and dedicated teachers, well-constructed school buildings, etc. are important.

Question 4.
In Tamil Nadu, 75 percent of the people living in rural areas use a ration shop, whereas in Jharkhand only 8 percent of rural people do so. Where would people be better off and why?
Answer:
People would be better off in Tamil Nadu because in this state the Public Distribution System (PDS) functions well which enables more and more people to use ration shops to get things like foodgrains, sugar, kerosene oil etc. at reasonable rate. Needless to say that these things are basic necessities of human beings. Their easy availability ensures better health and nutritional status of people in that state (Tamil Nadu).

Economics Class 10 Chapter 1 NCERT Textbook Questions and Answers

Question 1.
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

Question 2.
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

Question 3.
Assume there are four families in a country. The average per capita income of these families is ₹ 5000. If the income of three families is ₹ 4000, ₹ 7000 and ₹ 3000 respectively, what is the income of the fourth family?
(i) ₹ 7500
(ii) ₹ 3000
(iii) ₹ 2000
(iv) ₹ 6000
Answer:
(iv) ₹ 6000

Question 4.
What is the main criterion used by the World Bank in classifying different countries? What . are the limitations of this criterion, if any?
Answer:
Per capita income is the main criterion used by the World Bank in classifying different countries. But there are limitations of this criterion-

• It covers only the economic aspect and thus ignores many other factors which affect the development such as literacy rate, life expectancy, healthcare facilities, environment, etc.
• It does not tell us about how this average income is distributed among the people in the individual countries.

Question 5.
In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?
Answer:
The World Bank uses per capita income as the most important criterion for development. If we go into the depth, we will find that the level of income is not an adequate measure of the level of development. UNDP compares countries based on the educational levels of the people, their health status and per capita income. Thus, UNDP gives much importance to those factors which help in improving the quality of life and in making the citizens more capable and productive.

Question 6.
Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.
Answer:
Whenever we need to analyse a big sample size, we find it difficult to analyse individual data. Averages are used in such cases. But averages have some limitations

• Averages do not give the true picture. For example, the per capita income does not show the distribution of income among people.
• Averages do not show the percentage of the poor in the population. They also hide disparities.

Question 7.
Kerala, with lower per capita income has a better human development ranking than Maharashtra. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.
Answer:
Although the per capita income of Maharashtra is more than that of Kerala, the state (Maharashtra) shows a very high child mortality rate compared to Kerala. Literacy rate and the net attendance ratio of children in age group 14-15 are higher in Kerala, as compared to Maharashtra. Bihar is at the bottom which reveals its poor record on Human Development Index.

Question 8.
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?
Answer:
The present sources of energy that are used by the people in India are firewood, coal, crude oil, dung cake, etc. Solar power could be the other possibilities fifty years from now. It can reduce our dependency on the fossil fuel and can give us security against energy crisis in the future. India, being a tropical country has enormous possibilities of tapping solar energy and therefore it should be encouraged.

Question 9.
Why is the issue of sustainability important for development?
Answer:
Development i.e. progress does not only mean securing a better present, but it also means securing a better future for the coming generations. Sustainable development means development should take place without undue draining of resources, and development in the present should not compromise with the needs of the future generations. Thus, the issue of sustainability is important for development because if natural resources are not sustained, then development will be hindered and will stop after some time. This also compels us to think that we should minimise our needs as far as possible so that future generations may not face crisis of anything.

Question 10.
“The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. How is this statement relevant to the discussion of development? Discuss.
Answer:
This famous quote from Mahatma Gandhi shows his concern about resource conservation. What he meant to say is that our earth has no dearth of resources but they should be used judiciously and not exploited over a few years. Our greedy attitude would push our future generations into perils. So, we need to think about and stop overusing resources. We should control our greed and take as little from the nature as is really essential for us. Such an attitude will not only save us from dangers but also the generations to come.

Question 11.
List a few examples of environmental degradation that you may have observed around you.
Answer:
We find lack of greenery around us. The air quality is also degrading very fast. It seems as if we are living in gas chambers. Going outside in such an environment is just like inviting several health problems. Children and old people are the worst affected. The condition of the river that flows through the city is not better than a filthy drain. It has become a dumping ground for the city people. These are a few examples of environmental degradation. It is a matter of serious concern for all of us. We must think collectively and take some measures to curb this situation.

Question 12.
For each of the items given in Table 1.6 (Textbook Page 13), find out which country is at the top and which is at the bottom.
Answer:
Following are the top and bottom-ranked countries on various parameters

Question 13.
The following table shows the proportion of undernourished adults in India. It is based on a survey of various states for the year 2001. Look at the table and answer the following questions.

(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around 40 percent of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words.
Answer:
(i) People of Kerala get better nutrition than the people of Madhya Pradesh.
(ii) It is unfortunate that around 40 percent of people in our country do not get proper nutrition.
Several reasons can be held responsible for this

• The Public Distribution System is not functioning well.
• Foodgrain production is not evenly distributed.
• Supply chain is also erratic and unsystematic.

Additional Project/Activity
Invite three different speakers to talk to you about the development of your region. Ask them all the questions that come to your mind. Discuss these ideas in groups. Each group should prepare a wall chart, giving reasons about ideas that you agree or do not agree with.
Answer:
For self-attempt.

Class 10 Economics Chapter 1 NCERT Intext Activity Questions and Answers

Study Table 1.5 of Textbook Page 12 carefully and fill in the blanks in the following paragraphs. For this, you may need to make calculations based on the table.
Table: Educational Achievement of Rural Population of Uttar Pradesh

(a) The literacy rate for all age groups, including young and old, is for rural males and ………….. for rural females. However, it is not just that these many adults could not attend school but that there are …………….. who are currently not in school.

(b) It is clear from the table that ……………… % of rural girls and …………. % of rural boys are not attending school. Therefore, literacy among children in the age group 10-14 is as high as ………………. % for rural females and % for rural males.

(c) This high level of illiteracy among …………. age group, even after more than 60 years of our independence, is most disturbing. In many other states also we are nowhere near realisation of the constitutional goal of free and compulsory education for all children up to the age of 14, which was expected to be achieved by 1960.
Answer:
(a) 52%, 19%, 36% males and 69% females
(b) 69%, 36%, 61%, 32%
(c) 10-14.

Hope the data shared above regarding the NCERT Class 10 Social Science Economics Chapter 1 Development PDF has aided in your exam preparation. If you ever need any assistance you can always reach us and our team will guide you at the soonest possibility.

Outcomes of Democracy Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science Civics Chapter 7 Outcomes of Democracy familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.

Outcomes of Democracy Class 10 Questions and Answers Civics Chapter 7

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Civics Chapter 7 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Civics Chapter 7 Questions and Answers helps students to attempt the exam with confidence.

Outcomes of Democracy NCERT Intext Questions and Answers

Question 1.
Democracy is a rule of the majority. The poor are in majority. So democracy must be a rule of the poor. How can this not be the case?
Answer:
Democracy has been influenced by the rich and the affluent class who impacts its decisions. The poor may constitute majority in their share of voting but lack resources. They also often fail to influence its decisions. Political leaders so elected are generally insensitive to the problems that the poor are facing. Though all individuals in a democracy have equal weight in electing representatives but a large section of them are denied economic equality. This large section is constituted by the poor who face grave economic inequalities. They are victims of poverty. And the small number of ultra-rich enjoy a highly disproportionate share of wealth and incomes.

Question 2.
All you are saying is the democracy ensures that people do not break each other’s head. This is not harmony. Should we be happy about it?
Answer:
When democracy tries to accommodate social divisions, it does not mean it ensures that people do not break each other’s head. No society can fully and permanently resolve conflicts among different groups. But in a democracy we can certainly learn to respect these differences and we can also evolve mechanisms to negotiate the differences. We should be happy that we can live together with dignity and can enjoy our freedom, with all our differences only when there is a democratic set up. Non-democratic regimes often suppress internal social differences.

Civics Class 10 Chapter 7 NCERT Textbook Questions and Answers

Question 1.
How does democracy produce an accountable, responsive and legitimate government?
Answer:
(i) Democracy produces an accountable government because-

• It provides regular, free and fair elections.
• It carries open public debate on major policies and legislations.
•  It gives citizens the right to information about the government and its functioning.

(ii) Democracy produces a responsive government because the government is formed by the elected representatives of the people. These representatives discuss the problems of the society and make policies and programmes accordingly. Afterwards, they implement these policies and programmes.

(iii) Democracy produces a legitimate government because it is people’s own government. It is they who through their representatives form and run the government for themselves.

Question 2.
What are the conditions under which democracies accommodate social diversities?
Answer:
The two conditions under which democracies accommodate social diversities are—
(i) People in general will have to understand that democracy is not simply the rule by majority opinion. The majority always needs to work with the minority so that governments function to represent the general view.

(ii) It is also necessary that rule by majority does not become rule by majority community in terms of religion or race or linguistic groups etc. Rule by majority means that in case of every decision or in case of every election, different persons and groups may form a majority. Democracy remains democracy only as long as every citizen has a chance of being in majority at some point of time. If someone is barred from being in majority on the basis of birth, then the democratic rule ceases to be accommodative for that person or group.

Question 3.
Give arguments to support or oppose the following assertions:
(a) Industrialised countries can afford democracy but the poor need dictatorship to become rich.
(b) Democracy can’t reduce inequality of incomes between different citizens.
(c) Government in poor countries should spend less on poverty reduction, health, education and spend more on industries and infrastructure.
(d) In democracy all citizens have one vote, which means that there is absence of any domination and conflict.
Answer:
(a) Experiences show that poor countries achieved better economic growth under dictatorship. But this cannot be supported at the cost of other positive aspects like dignity and freedom of the citizens, that only democracy can provide.

(b) People have over-expectations from democracy. As they get some benefits of democracy, they ask for more and want to make democracy even better. They don’t want to see inequality of income between different citizens and begin to blame democracy for not reducing it. But the fact is that inequality of income may be due to various social ailments and economic conditions such as country’s population size, global situation, etc. So it should not be left to democracy alone to reduce inequality of income between different citizens.

(c) This argument is not acceptable because health and education are the basic needs which people want to fulfil at all cost. It is very unfortunate if democracy fails to fulfil these needs of its people. Spending on industries and infrastructure is not wise if people are poor, malnutritious and illiterate. What is advisable is that more money should be spent on people’s health and education. Needless to say that human resources is the greatest asset for a nation. Only healthy and educated people can bring better future.

(d) Democracies all over the world are based on political equality. It means all individuals have equal weight in electing representatives. Parallel to the process of bringing individuals into the political arena on an equal footing, we find growing economic inequalities. A small number of ultra rich enjoy a highly disproportionate share of wealth and incomes. Those at the bottom of the society have very little to depend upon. These rich people dominate the poor. We also see conflict of interest in a democratic set up. But this is a truth that democracy provides the means to negotiate and resolve them.

Question 4.
Identify the challenges to democracy in the following descriptions. Also suggest policy institutional mechanism to deepen democracy in the given situations:
(a) Following a High Court directive a temple in Odisha that had separate entry door for dalits and non- dalits allowed entry for all from the same door.
(b) A large number of farmers are committing suicide in different states of India.
(c) Following allegation of killing of three civilians in Gandwara in a fake encounter by Jammu and Kashmir police, an enquiry has been ordered.
Answer:
(a) Here people were discriminated on the basis of their birth in a particular caste or social group. This denied the democratic principle that all are equal irrespective of their birth, caste, religion, etc. Here, the challenge to democracy was to provide equal status to all citizens.

(b) This reflects the failure of democracy in terms of its policies and programmes. In a democracy, the government is accountable to safeguard the interests of all social groups including farmers. Here, the challenge to democracy is to provide farmers with subsidies which will help them earn profit to live their life comfortably.

(c) This reflects the failure of democracy in securing the dignity and freedom of the people.
Following policy/institutional mechanism can deepen democracy

• People should be promoted to respect differences between the social groups.
• People should be promoted to resolve dispute through negotiations.
• People should be promoted to pay taxes in time so that the poor can be provided with a dignified life.
• Government should make policies regarding the discriminated and disadvantaged groups of the society.
• Institutions should be made to evaluate the implementation of various policies and programmes.

Question 5.
In the context of democracies, which of the following ideas is correct – democracies have successfully eliminated:
A. conflicts among people
B. economic inequalities among people
C. differences of opinion about how marginalised sections are to be treated
D. the idea of political inequality
Answer:
C. differences of opinion about how marginalised sections are to be treated.

Question 6.
In the context of assessing democracy which among the following is odd one out. Democracies need to ensure:
Nannu is a daily wage earner. He lives in Welcome Mazdoor Colony, a slum habitation in East Delhi. He lost his ration card and applied for a duplicate one in January 2004. He made several rounds to the local Food & Civil Supplies office
A. free and fair elections
B. dignity of the individual
C. majority rule
D. equal treatment before law
Answer:
C. majority rule

Question 7.
Studies on political and social inequalities in democracy show that
A. democracy and development go together.
B. inequalities exist in democracies.
C. inequalities do not exist under dictatorship.
D. dictatorship is better than democracy.
Answer:
B. inequalities exist in democracies.

Question 8.
Read the passage below:

for the next three months. But the clerks and officials would not even look at him, leave alone do his job or bother to tell him the status of his application. Ultimately, he filed an application under the Right to Information Act asking for the daily progress made on his application, names of the officials, who were supposed to act on his application and what action would be taken against these officials for their inaction. Within a week of filing application under the Right to Information Act, he was visited by an inspector from the Food Department, who informed him that the card had been made and he could collect it from the office.

When Nannu went to collect his card next day, he was given a very warm treatment by the Food & Supply Officer (FSO), who is the head of a Circle. The FSO offered him tea and requested him to withdraw his application under the Right to Information, since his work had already been done. What does Nannu’s example show? What impact did Nannu’s action have on officials? Ask your parents their experiences when they approach government officials to attend to their problems.
Answer:
Nannu’s example shows that the Right to Information Act is important as it compels the government officials to take prompt action and to inform the people in time. The officials got afraid of the actions to be taken against them and completed Nannu’s work.

Hope the data shared above regarding the NCERT Class 10 Social Science Civics Chapter 7 Outcomes of Democracy PDF has aided in your exam preparation. If you ever need any assistance you can always reach us and our team will guide you at the soonest possibility.