Question 1

Question 1: The economy begins at home.

Accepted Answer

Step-by-step solution provided.

Question 2

Question 2: India’s economy is of mixed type.

Accepted Answer

Step-by-step solution provided.

Question 3

Question 3: On the basis of economies, we can divide countries into three groups.

Accepted Answer

The activities related to the production, distribution and consumption of goods and services in a specific region is called economy. On the basis of economies, countries are divided into three groups. Capitalist Economy, Socialist Economy and Mixed Economy.

Question 4

Question 1: To which economic factor is the management of individual or family finances related?

Accepted Answer

Management of individual or family finances is related to the economic factor of ‘income and expenditure.

Question 5

Question 2: From which Greek word is the term ‘Economics’ derived?

Accepted Answer

The word ‘Economics’ is derived from the Greek word ‘Oikonomia’ which means family management.

Question 6

Question 3: In a capitalistic economy, to whom does the ownership and management of means of production belong?

Accepted Answer

In a Capitalistic Economy, the ownership and management of means of production belong to the private sector.

Question 7

Question 4: What do you mean by globalisation?

Accepted Answer

Globalisation means aligning the country’s economy with the world economy.

Question 8

Question 1: Suppose you are the finance minister of an agrarian country. Giving priority to the overall development of the country, make a five-point program.

Accepted Answer

As a Finance Minister of an Agrarian country like India, I would focus on transforming India in five areas:

Question 9

Question 1: The term economics’ is derived from Greek word (a) oikomonia (b) oikonomica (c) oikonomia (d) oikonomics

Accepted Answer

(c) oikonomia

Question 10

Question 2: China and Russia have adopted type of economy. (a) Socialistic (b) Capitalistic (c) Mixed (d) None of these

Accepted Answer

(a) Socialistic

Question 11

Question 3: The main motive of a economy is to earn profit. (a) Mixed (b) Capitalistic (c) Simple (d) Socialistic

Accepted Answer

(b) Capitalistic

Question 12

Question 4: The main aim of Socialistic economy is to achieve (a) social welfare (b) profit (c) injustice (d) tolerance

Accepted Answer

(a) social welfare

Question 13

Question 5: Germany is an example of a country which has adopted economy. (a) Simple (b) Socialistic (c) Mixed (d) Capitalistic

Accepted Answer

(d) Capitalistic

Question 14

Question 6: Adam Smith has defined economics as the (a) science of knowledge (b) science of wealth (c) science of peace (d) science of needs

Accepted Answer

(b) science of wealth

Question 15

Question 7: means making the country’s economy aligned with world economy. (a) Liberalisation (b) Privatisation (c) Globalisation (d) None of these

Accepted Answer

(c) Globalisation

Question 16

Question 8: Economics is an important science. (a) social (b) political (c) physical (d) alternative

Accepted Answer

(a) social

Question 17

Question 9: One of the main functions of the economy is to the production cost (a) maximize (b) inflate (c) increase (d) minimize

Accepted Answer

(d) minimize

Question 18

Question 10: An economy strives to create a balance between resources and needs. (a) unlimited, limited (b) limited, unlimited (c) plentiful, limited (d) limited, scarce

Accepted Answer

(b) limited, unlimited

Question 19

Question 11: is known as the Father of Economics. (a) Lionel Robbins (b) Prof. Samuelson (c) Amartya Sen (d) Adam Smith

Accepted Answer

(d) Adam Smith

Question 20

Question 12: Economics is a science which studies human behaviour as a relationship between and scarce which have alternative uses. (a) means, ends (b) people, resources (c) money, land (d) end

Accepted Answer

(d) ends, means

Question 21

Question 13: We understand from economics, how to use, money, land and effectively. (a) minerals, factory (b) time, labour (c) food grains, machines (d) people, power

Accepted Answer

(b) time, labour

Question 22

Question 14: On a global level, there are types of economies. (a) four (b) two (c) three (d) five

Accepted Answer

(c) three

Question 23

Question 15: economy is a borderless economy. (a) State (b) Town (c) Village (d) World

Accepted Answer

(d) World

Question 24

Question 16: In Globalisation, there is trade and all restrictions on are set aside. (a) restricted, economy (b) free, investments (c) no, activity (d) zero, labour

Accepted Answer

(b) free, investments

Question 25

Question 1: Define Economics.

Accepted Answer

According to Lionel Robbins, “Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.

Question 26

Question 2: What is an Economy?

Accepted Answer

The activities related to the production, distribution and consumption of goods and services in a specific region is called an economy.

Question 27

Question 3: What is a Capitalistic Economy?

Accepted Answer

The economy in which the ownership and management of the means of production is in the hands of private individuals is called as a Capitalistic Economy.

Question 28

Question 4: What is the main aim of a Capitalistic Economy?

Accepted Answer

The main aim of a Capitalistic Economy is to earn maximum profit.

Question 29

Question 5: Which countries have adopted Capitalistic Economy?

Accepted Answer

Germany, Japan and USA are the examples of countries which have adopted Capitalistic economy.

Question 30

Question 6: What do you mean by Socialistic economy?

Accepted Answer

The economy in which the means of production belong to the society as a whole i.e. the government’s control is known as a Socialistic economy.

Sr.No.	—	Estimated Expenditure (₹)
1.	Daily food	6,000
2.	Buying two sets of Uniform	2,000
3.	School Stationery	500
4.	Medical expenditure	450
5.	Recreation	500
6.	Mobile Bill	1,000
7.	Vegetables, Fruits, etc.	1,000
8.	Public transport (bus, railway, rick-shaw, etc.)	2,600
9.	Electricity Bill	1,500
10.	Tourism	4,000
11.	Bank Installment	3,000
	Total Expenditure	22,550

Group A	Group B
(1) Capitalist economy	(a) India
(2) Socialist economy	(b) USA
(3) Mixed economy	(c) Russia

Capitalist Economy	Socialist Economy
(i) Ownership and management of means of production is in the hands of the private individuals. (ii) To earn maximum profit is the main aim of the Capitalist Economy. (iii) The USA, Germany and Japan have Capitalist Economy.	The means of production belong to the society as a whole and are under the control of the government. To achieve social welfare is the main aim of the Socialist Economy. Russia and China have Socialist Economy.

Chapter 8 Introduction to Economics Solutions