Chapter 8 – Introduction to Economics
Q (1) Explain the types of economies by filling correct information in the place of questions in the circle.
Ans:
Q (2) Give an explanation :
(1) Economy begins at home.
Ans:
(i) The word ‘economics’ comes from the Greek word ‘oikonomia’ which means ‘family management’. There is a lot of similarity between family management and economics.
(ii) As we manage the finances of our family, similarly, villages/cities, states, countries and world also need to have economic management.
Hence, economy begins at home.
(2) India’s economy is of mixed type.
Ans:
(i) In India, there is a co-existence of private and public sectors.
(ii) A balance between profit and social welfare is made.
Thus, India’s economy is of mixed type.
(3) On the basis of economies, we can divide countries into three groups.
Ans:
(i) Various activities related to the production, distribution and consumption of goods and services in a certain geographical region is called an economy.
(ii) On a global level, there are three types of economies into which we can divide the countries.
(a) Capitalistic Economy: Ownership and management of means of production is in the hands of private individuals.
(b) Socialistic Economy: The means of production belong to the society as a whole i.e. the government’s control.
(c) Mixed Economy: There is coexistence between the public and private sectors.
Q (3) Write the following questions in one line:
(1) To which economic factor is the management of individual or family finances related?
Ans: Management of individual or family finances is related to income and expenditure i.e. economic factors.
(2) From which Greek word is the term ‘Economics’ derived?
Ans: The word ‘economics’ comes from the Greek word ‘oikonomia’ which means ‘family management’.
(3) In capitalistic economy, to whom does the ownership and management of means of production belong?
Ans: In capitalistic economy the ownership and management of means of production belong to private individuals.
(4) What do you mean by globalisation?
Ans: Globalisation means aligning the country’s economy with the world economy. There is free trade, and all restrictions on investments are set aside.
