class 9 sst chapter 16 the nature of the indian economy part 1 cgbse
Answers
Answer:
INTRODUCTION: In this chapter, you will understand the concept of economy in a detailed manner. An economy can be defined as the sum total of all the economic activities of a country. All the activities which are related to production, distribution and consumption of wealth are called economic activities.
Different countries have different forms of economies and thus economy does not have a singular form in every country of the world. In some countries, the main source of income for the people is agriculture and therefore they are called agricultural economies. Some economies of the world are very systematic and developed like the economy of the United States of America and therefore they are called developed economies. On the other hand economies like the economy of India has not reached the level of the American economy and therefore our economy is identified as a developing economy.III. Short Answer Type Questions
1. What are two important functions that an economy performs?
Ans: The two important functions that an economy performs are:
I. To produce goods and services to satisfy human wants.
II. To provide employment or income earning opportunities to its people.
2. State the principal features of a capitalist economy.
Ans: The principal features of a capitalist economy are:
I. Freedom of Enterprise and Contract: Capitalists have the freedom to set up business enterprises and to sell the goods and services to maximise profits
II. Freedom of Consumption: A capitalist economy allows freedom to consumers in the sense that consumers are free to decide which goods they would consume and in what quantities.
III. Free Market: A capitalist economy is an economy where the market a mechanism is allowed to work freely.
IV. Competition: In a capitalist economy there is free and perfect competition.
V. Laissez-Faire State: Under the capitalist economy state does not interfere in the economic affairs of society.
3. State the features of a mixed economy.
Ans: The features of a mixed economy are:
I. Coexistence of private and public sectors.
II. Economic planning.
III. Beneficial for the masses. In a mixed economy, prices are generally regulated or are administered prices.
IV.Greater welfare.
V. Protects the interest of workers.
VI. Reduction of inequality of incomes.
4. State three characteristics of underdeveloped countries.
Ans: The characteristics of underdeveloped economic are:
I. Low per capita income: One of the main features of an underdeveloped economy is a low per capita income.
II. The high growth rate of population: The rate of population growth in underdeveloped countries is quite high as compared to the developed countries.
III. Agriculture: Generally agriculture is the main occupation of the people in underdeveloped countries.
IV. Unequal distribution of income: In underdeveloped countries there exists a widespread inequality in the distribution of income.
V. Technological backwardness: In underdeveloped countries technique of productions are required.
5. State three characteristics of developed economies.
Ans: Three characteristics of developed economies are:
I. High per capita income: National income and per capita income are high in developed countries.
II. The predominance of Industrial and service sectors: Developed economy is dominated by large industries and service sectors.
III. Technological advancement: Production techniques used in these countries are highly complex and advanced.
6. India’s economy is a ‘mixed economy.’ Give two arguments in support of your answer.
Ans: India’s economy is a mixed economy because firstly, there is the coexistence of the public and private sectors. Secondly, the strategic and basic industries are being run under the public sector. Also, there is a huge private sector under which a large number of industries are being managed. Market mechanism occupies a prime position in the Indian economy but market mechanism is not allowed to work freely. It is subjected to government control and regulations.
7. Distinguish between private and public sector.
Ans: The private sector and public sector can be differentiated on the following lines:
Private sector Public sector
I. Nearly 80% of the country’s national income is generated by the private sectors in India. I. The Percentage share of public sector in the country’s national income is 24%.
II. The economic activities are privately owned and controlled. II. These are owned and controlled by the government.
III. It is guided by profit motive. III. The main purpose is to remove regional imbalance and develop backward areas.
IV. The private sector is more productive and efficient compared to the public sector. IV. Public sector is less productive and efficient than the private sector.
8. Mention the economic activities which constitute the primary sector.
Ans: The economic activities which constitute the primary sectors are: Agriculture, forestry, hunting, lumbering, fishing etc.
