Understanding Economic Development – II
Practice Questions of ECONOMICS Class X
MCQ Questions of Economics Class X
- India’s HDI rank in the world is:
(a) 125
(b) 132
(c) 126
(d) 134 - \Miss “Vaibhavi” approached a bank nearby to avail loan for her own business, as well as a Self-help group which is operating in her village; the bank rejected her loan application whereas the Self-help group accepted to support her by providing the loan. Which one of the following documents is required by the bank, but not required by the self-help group to approve Miss “Vaibhavi’s” loan application for her business? (a) Application for loans. (b) Arrangement Letter. (c) Document on Collateral (d) Demand promissory note and take delivery letter.
- If there is a disruption by transporters and lorries refuse to transport vegetables, milk, etc. from rural areas to urban areas, food will become scarce in urban areas, whereas farmers will be unable to sell their products. Which of the following sectors will be affected due to this situation stated above? (a) Primary and Secondary (b) Secondary and Tertiary (c) Tertiary, Primary and Secondary (d) Tertiary and Primary.
- Life expectancy at birth means: (a) average expected length of life of a person at the time of birth (b) average expected length of life of a person at the time of death (c) average expected length of a child at the time of birth (d) None of the above
- Which one of the following is not a modern form of money? (a) Demand Deposits (b) Paper currency (c) Coins (d) Precious metals
- Which of the following is not true regarding the in convenience of Barter Exchange? (a) Lack of double coincidence of want (b) Absence of divisibility (c) Difficulty in storing wealth (d) Availability of money as a medium of exchange.
- The economy is classified into public and private sectors on the basis of : (a) employment conditions (b) the nature of economic activity (c) ownership of enterprises (d) number of workers employed in the enterprise
- Which of the following types of activities are covered in the secondary sector? (a) It generates services rather than goods. (b) Natural products are changed through manufacturing. (c) Goods are produced by exploiting natural resources. (d) It includes agriculture, forestry and dairy.
- Workers in agricultural sector are (a) underemployed (b) over employed (c) unemployed (d) None of these
- Which of the following statements is true in respect of Public Sector?
(a) Big companies own most of the assets
(b) Government owns the assets
(c) A group of people owns most of the assets
(d) An individual owns most of the assets - Which households take more loans from the formal sector?
(a) Poor households and rich household.
(b) Well off households and households with few assets.
(c) Poor households and well off households
(d) Well off households and rich households. - Which among these is an essential feature of barter system?
(a) Money can easily exchange any commodity
(b) It is based on double co-incidence of wants
(c) It is generally accepted as a medium of exchange of goods with money
(d) It acts as a measure and store of value - Which one of the following agencies issues currency notes on behalf of the government of India?
(a) Ministry of Finance
(b) Reserve Bank of India
(c) State Bank of India
(d) World Bank - Which one of the following has benefited least because of globalisation in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector
(d) Secondary Sector - Special Economic Zones (SEZ) developed by the Government of India aim
(a) to attract foreign companies to invest in India
(b) to encourage small investors
(c) to encourage regional development
(d) none of the above - Globalisation results in
(a) inflow of labour from abroad
(b) inflow of capital from abroad
(c) inflow of tourists from abroad
(d) all the above - Kerala has low Infant Mortaliy Rate because:
(a) it has good climatic condition
(b) it has adequate infrastructure
(c) it has adequate provision of basic health and educational facilities
(d) it has poor net attendence ratio - Cause of high infant mortality rate is :
(a) inadequate facilities of health
(b) lack of infrastructural facilities
(c) lack of awareness
(d) both (a) and (b) - Ankit has a sack of cotton but he is in need of wheat and Rajat has a sack of wheat and is in need of cotton, under this situation both will be able to exchange their goods. In case of absence of such coincidence of wants, they may not exchange their goods. Which one of the following would be the best option that describes the mutual exchange of goods and eliminate the exchange of goods? (a) Double coincidence of want, exchanging commodity for commodity. (b) Double Coincidence of want, Credit on Commodity (c) Double coincidence of want, Loan on commodity. (d) Double coincidence of want, Money
- Evaluate the impacts of opening foreign trade on the global economy by identifying the appropriate statements among the following options: (i) The choice of goods in the markets increase. (ii) Producers from two countries closely compete against each other despite the distance between their locations. (iii) Foreign trade thus results in connecting the markets or integration of markets in different countries. (iv) The quality of the product is always good. Options: (a) Statements i and ii are appropriate. (b) Statements i, ii and iii are appropriate. (c) All the statements are appropriate. (d) Only statement iv is appropriate.
Other Important Questions of Economics Class X
Read the source given below and answer the questions that follow: For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. Now, what is the income of a country? Intuitively, the income of the country is the income of all the residents of the country. This gives us the total income of the country. However, for comparison between countries, total income is not such an useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population. The average income is also called per capita income. In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 49,300 per annum and above in 2019, are called high income or rich countries and those with per capita income of US$ 2500 or less are called low-income countries. The rich countries, excluding countries of Middle East and certain other small countries are generally called developed countries.
Q. What are the classifications of countries based on per capita income, and which entity is responsible for determining these classifications?”(3 Marks)
Ans: The courtiers are classified into “High income or Rich countries and low income countries based on their per capita Income. If it is US $ 49,300 per annum they will be classified as rich country and if the per capita income is US$ 2500 per annum it will be called a poor country. World Bank determines this classification
Q. Explain the significance of per capita Income. (3 Marks)
Ans: The Per capita income enables comparisons between countries and provides insights into the relative economic performance and living standards across different nations. Per capita income also serves as an important indicator of the standard of living in a country.
Q. Define the term National Income? (2 Marks)
Answer: National income is defined as the total value of all final goods and services produced with a country plus net income from transactions like (export and import) with other countries.
Define the terms : ( 4 Marks)
Infant mortality rate
Literacy rate
Net attendance ratio
BMI
Answer:
Infant mortality rate. It indicates the number of children that die before the age of 1 year as a proportion of 1000 live children bom in that particular year.
Literacy rate. It measures the proportion of literate population in the 7 and above age group.
Net Attendance ratio. It is the total number of children of age group 6 to 10 attending school as a percentage of total number of children in the same age group.
BMI stands for Body Mass Index. It is calculated by dividing the weight of a person in kilograms (kgs) by the square of his/her height in metres. It is an indicator of the level of nourishment in adults.
Q. Explain with reasons why state of Punjab with a very high per capita income has a low literacy rate. (2016, 2017 D) (3 Marks)
Answer:
Per capita income is not a useful criterion at all to measure the human development ranking of a state. High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life.
This can be seen in the case of Punjab which has a very high per capita income but a low literacy rate. Having money in one’s pocket cannot buy all the goods and services that we need to live well. Money cannot ensure education and literacy. Another reason for low literacy rate in Punjab could be the lack of free and compulsory educational facilities. The government needs to open more schools and provide other facilities so that all children have a chance to study.
Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a good standard of living. In order to achieve these, joint efforts have to be made by all members of a community, be it rich or poor.
Q. Production of a commodity, mostly through the natural process is an activity of which sector? (2013) (1 Mark)
Answer: Primary Sector
Q. What is meant by Gross Domestic Product (GDP)? How is GDP measured in India? (2015) (2 Marks)
Answer:
Gross Domestic Product (GDP) of a country is the value of all the final goods and services produced in each sector within a country during a particular year. This indicates how big the country’s economy is. GDP is measured by the Central Government Ministry. This Ministry, with the help of all the Indian States and Union Territories, collects information relating to total volume of goods and services and their prices and then makes an estimate of the GDP.
Q. What is globalization? (2 Marks)