ECONOMICS

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 CHAPTER - 1
DEVELOPMENT
ASPECTS OF DEVELOPMENT

STANDARD
ACCESS TO OF LIFE
CLEAN LITERACY
DRINKING RATE
WATER

HUMAN
DEVELOPMENT
INDEX INFANT
BODY MASS
MORTALITY
INDEX
RATE

HEALTH LIFE
FACILITIES EXPECTANCY

Respect Equal
treatment
Security Satisfaction

Freedom Good standard of

living

Ample
Income Developmental goals
opportunities

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 OF LIFE

Different notions of development:

 Different people have different notions of development because life
situations of persons are different and therefore their aspirations and
desires and goals.
 What may be development for one may not be development forthe other.
It may even be
destructive for the other.
Income and other goals
 Money, or material things that one can buy with it, is one factor on which
our life depends.
 The quality of our life also depends on non-material things.
 The developmental goals that people have are not only about better
income but also about other
important things in life.
How to compare different countries or states?
 The Comparison between countries, total income is not such an useful
measure.
 Countries have different populations, comparing total income will not tell
us what an average person is likely to earn.
 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 Report 2006, Countries with per capita income of
Rs 4,53,000 per annum and above in 2004, are called rich countries and
those with per capita income of Rs 37,000 or less are called low-income
countries.
 India comes in the category of low-income countries because its per

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 capita
income in 2004 was just Rs 28,000 per annum.
 The rich countries, excluding countries of Middle East and certain other
small countries, are
generally called developed countries.
Public facilities
 Money in your pocket cannot buy all the goods and services that you may
need to live
well.
 Income by itself is not a completely adequate indicator of material goods
and services that
citizens are able to use.
 For example, normally, your money cannot buy you a pollution-free
environment or Money may also not be able to protect us from infectious
diseases, unless the whole of your
community takes preventive steps.
Body Mass Index (BMI).
 Take the weight of the person in kg.
 Then take the height in metres.
 Divide the weight by the square of the height.
 If the figure is less than 18.5 then the person would be considered
undernourished.
 If this BMI is more than 25, then a person is overweight.
Human Development Report
 Human Development Report published by UNDP compares countries
based on the Educational levels of the people,
 Their health
 Status

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  Per capita income.
Sustainability of development
 "Sustainable development is development that meets the needs of the
present, without compromising the ability of future generations to meet
their own needs."
 The concept of sustainable development is an approach to development
that looks to balance different, and often competing, needs against an
awareness of the environmental, social and economic limitations we face
as a society.
Infant Mortality Rate (or IMR) indicates the number of children that die
before the age of one year as a proportion of 1000 live children born in that
particular year.
Literacy Rate measures the proportion of literate population in the 7 and above
age group.
Net Attendance Ratio is the total number of children of age group 6-10
attending school as a percentage of total number of children in the same age
group.
MULTIPLE CHOICE QUESTION
1. For comparing the development of countries, their _______ is
considered to be one of the most important attributes.
a) income
b) population
c) demographics
d) none of the above
2. If the Body Mass Index (BMI) is _________ then the adult person
would be considered undernourished.
a) less than 18.5
b) less than 10.5

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 c) less than 25.5
d) less than 28.5
3. What will be the top priority in the developmental goal of a landless
labourer?
(a) Expansion of rural banking
(b) More days of work and better wages
(c) Metal roads for transportation
(d) Establishment of a high school
4. Which of the following neighbouring countries has better
performance in terms of human development than India?
a) Bangladesh
b) Sri Lanka
c) Nepal
d) Pakistan
5. What is the full form of UNDP?
a) United States National Development Project
b) Union National Global Development
c) United Nations Development Programme
d) Union of Nations for Global Development
6. . …………….. is the total income of the country divided by its total
population?
A. per capita income
B. Gross income
C. Net income
D. Total income
7. Which of the following is the most important component for
comparing different countries?
(a) Population

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 (b) Income
(c) Per capita income
(d) Resources
8. Which one of the following statements defines ‘Literacy Rate’?
(a) Total literate population divided by total population
(b) Total literate population divided by literate population
(c) Proportion of illiterate population in the 18 and above age group.
(d) It measures the proportion of literate proportion in the 7 years and
above age group
9. Pick out the cause (from below) that enhances environmental
degradation:
(a) Planting of trees.
(b) Prevention of factory wastes getting mixed up with river water.
(c) Ban on use of plastic bags.
(d) Allowing increase in the level of exhaust fumes emitted by cars, buses,
trucks, etc.
10 In which state of India is the infant mortality rate lowest?
(a) Punjab
(b) Bihar
(c) Uttar Pradesh
(d) Kerala
11. Which category does India come under?
A. High-income countries
B. Low middle-income countries
C. Low-income countries
D. High middle-income countries
12. Groundwater is an example of …………..resources?
A. Renewable

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 B. Non-renewable
C. Protected
D. Reserve
13. ANSWERS:
1---- (a) 2----(b) 3 ---(b) 4 ---(c) 5 ---(a)
6 --- (c) 7----(d) 8 ---(a) 9 ---(d) 10 --(d)
11 --(b) 12----(a)
14. Fill in the blanks :
1)PDS means _______________________
2) Human Development Report is published by ________________
3) Two important aspects of our lives other than income are _________
and _____________
4) ____________ is the most common indicator for measuring economic
development of a country.
5) IMR stands for _________________
6) Infant Mortality Rate (or IMR) indicates the number of children that die
before the age of ____________ as a proportion of 1000 live children
born in that particular year.
7) In India, ___________ state has the lowest literacy rate.
8) Nearly ___________ of the country is overusing their ground water
reserves.
ANSWERS:
1) Public Distribution System
2) the United Nations Development Programme (UNDP)
3) Equality and freedom
4) Per capita income
5) Infant Mortality Rate
6) 1 year

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 7) Bihar
8) One-third
15. ASSERTION AND REASONING:
ASSERTION(A): Kerala has low Infant Mortality Rate.
Reason ( R) : Kerala has adequate provision of basic health and
education facilities.

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A) .
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not
the correct explanation of Assertion (A) .
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is correct.

Answer: Option (a)

3 Mark questions:
1. What is per capita income? Mention any two limitations of per capita
income as an indicator of development.
Answer-
 The total income of a country divided by its total population gives
the percapita income.
 The rise in per capita income is due to a rise in prices. An increase
in physical output has no contribution, therefore, it is not a reliable
index of economic development.
 Per capita income doesn't tell us how the income is distributed
among people.

 Per capita income cannot be regarded as the sole indicator of

development. Other Ares are also important like literacy rate, life
expectancy, infant mortality rate, etc.
2. “What may be development for one may not be development for the
other.” Explain with a suitable example.
Answer:
Every individual is different from each other, the notion of
development also varies. The difference in social and economic positions
of the people generally results in different goals of development. Two

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 individuals and groups of people may have conflicting interests.
 For example, for many people, large dams are the symbols of
development and prosperity. However, building of large dams
results in the displacement of villagers and tribals from their homes
and land. They not only lose their land and homes but also their
livelihood. Therefore, villagers often resent and protest against the
building of large dams.
 The ‘Narmada bachao andolan’ is one such case, where villagers
and tribals have been opposing the construction of the dam.
3. Explain the term ‘Development. How is it linked with sustainability ?
Explain with example.
Answer:
(i)Development is a process which has a notion of going further up and
improving the quality of life.
(ii) It is linked to sustainability since it has to be maintained for future
generations.
(iii) Resources need to be used wisely so that they can be replenished.
(iv) Overuse of resources exhausts them. For example, petroleum.
(v) If development is not sustainable, it will give rise to environmental
degradation and become a global problem.

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4.

5. Define the following based on the information given in the above table
. i Infant mortality rate
. ii Literacy rate
. iii Net attendance ratio
. ivName the state which has maximum% of net attendance ratio
Answer:
1. Infant mortality rate. It indicates the number of children that die
before the age of 1 year as a proportion of 1000 live children born
in that particular year.
2. Literacy rate. It measures the proportion of literate population in the
7 and above age group.
3. 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.
Kerala
6. Why do people look at a mix of goals for development? Explain.

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 Answer:
Though income is one of the most important components of development,
but there are other important goals which people look at for
development—
1. People also seek things like equal treatment, freedom, security and
respect.
2. Women need a safe and secure environment to take up a variety of
jobs or to run businesses as entrepreneurs.
3. People seek a pollution free environment.
4. Students seek better education and equal opportunities to learn.
7. “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:
a. “The Earth has enough resources to meet the needs of all but not
enough to satisfy the greed of even one person”. This statement is
given by Mahatma Gandhi and is relevant to the discussion of
development since both resources and development go hand in
hand.
b. For the sustainability of development, the maintenance of resources
is also crucial. As the statement claims, the Earth has enough
resources—renewable and non-renewable—to satisfy everyone’s
needs; however, these need to be used with a view to keeping the
environment protected and clean so that a balance of production and
use is maintained, and shortages are avoided.
8. What do you mean by public facilities? Why are they important?
Name two public facilities available in India.
Answer:

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 i. Public facilities are the essential facilities for the community at
large and are provided by the government Important:
ii. They are important because there are many services like education,
health, transportation etc., which have become cheap and
affordable if provided, collectively.
iii. Public facilities : Rail transport and – Government schools.
9. Why do we use averages? Are there any limitations to their use?
Illustrate with your own examples related to development.
Answer:
a) Total income is not a useful measure for comparison between countries.
Since countries have different populations, comparing total income does
not tell what an average person is likely to earn. Hence, we use average
income which is total income of the country divided by total population.
b) The defect of average as a measure is that it does not show the
distribution (dispersion) of income between the rich and the poor.
c).Two countries may have the same average income but in one country
almost every family may enjoy more or less the same kind of income,
whereas in the other, some maybe very rich and others very poor.
d) The disparity between rich and poor is an important
feature that the average measure (per capita income) does not consider.
Example: In terms of development, we can take the example of India,
where the metro towns are full of high-rise buildings and shopping malls
while some villages have not yet been provided with a basic necessity like
electricity.
5 Mark questions:
1. “Money cannot buy all the goods and services that one needs to live
well” Do you agree with this statement? Justify your answer with any
three suitable arguments.

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 Answer: Yes, I agree with the statement because money income and
material goods alone are not an adequate indicator of a good quality of
life. Money cannot buy all the goods and services one needs to live well.
 Money cannot buy pollution free and dean environment with fresh air.
 It cannot protect us from infectious diseases and guarantee good health
for us.
 Money cannot assure that medicines available in the market are not
adulterated. To live well one needs non-material factors such as equal
treatment, freedom, security, equal opportunity to learn, a pollution free
environment, good and safe working conditions etc.
2. What is the main criterion used by the World Bank in classifying
different countries? What are the limitations of this criterion, if any?
Answer:
The criterion used in classifying countries is the per capita income of a
nation. This criterion is used by the World Bank in its World
Development Reports.
 Countries with per capita income of US$ 1035 or less are called
low-income countries.
 As per 2012, rich countries are the countries with per capita income
of US$ 12616 per annum and above.
 In 2012 per capita income of India was just US$ 1530 per annum,
hence it was classified in the category of low middle income
countries.
 Generally developed countries are the rich countries, excluding
some small countries and countries of the Middle East.
 Per capita income is nothing but the average income.
 Average income is the total income of the country divided by its
total population. Hence, the right measure used in comparing

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 different nations is comparison of average incomes of nations.
Limitations
 Better income is the only goal for people. They have many other
goals in life such as freedom, equal treatment, respect for other
people, security etc. There are a whole gamut of things which are
not included in the criterion used by the World Bank for comparing
countries.
 For example, one cannot say everything is fine and developed by
merely checking the per capita income, there are other factors like
infant mortality rate which needs to be measured.
 Health, Nutrition, Education levels are other important metrics
which are not measured through the development report given out
by the World Bank.
 Unless the whole of your community takes preventive steps, money
may not be able to protect a person from infectious diseases
 Money cannot ensure that you get unadulterated medicines.
 Money alone cannot buy you a pollution-free environment.
3. What are the importance of Human development index?
Answer:
a. It indicates the development of a country.
b. It indicates to a country how far it has to yet travel to achieve a
higher rank and how far itas travelled.
c. It indicates the country that in which areas it is poor and in which
areas it has improved.
d. Though it, one comes to know the important elements of economic
welfare like life Expectancy, level of education attainment and real
per capita income.
e. It measures material and non material components of development.

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 f. Human Development Index is helpful for a country to plan its
future agendas.
Mention any four aspects of comparison notions of development
between different countries. Or
Explain three attributes for comparing nations development between
different countries. Or
What are the two basic criteria used for comparing an
underdeveloped country with developed one ? Or
Give examples to prove that there are other important developmental
goals than income.
Answer: Development of a country can generally be determined by: per
capita income; average literacy level; and health status of its people.
(i) Per Capita Income means average income generated by each person
in a given group of people. Its limitation is that it does not show the
disparities among the people of the group. ‘
(ii) Amount of literacy achieved is also a measure of development.
Literacy rate measures the proportion of literate population in the 7 and
above age group. The more the people are educated, the more the country
will be developed.
(iii) Health indicators are Infant Mortality Rate, Birth Rate, etc. Lower the
amount of Infant Mortality Rate, higher is the rate of people being
healthy. ,
(iv) Net Attendance Ratio is also the indicator of economic development
of a nation. It is the total number of children of age group 6-10 attending
school as a percentage of total number of children in the same age group,
(v) Life Expectancy at birth denotes average expected length of life of a
person at the time of birth. Higher the life expectancy at birth, higher is
considered the development of a nation.

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 CHAPTER -2

SECTORS OF THE INDIAN ECONOMY

PRIMARY SECTOR
Production of good by extraction and collection of natural
resources. Eg: Farming, forestry, hunting, fishing and mining

Economic Activities

TERTIARY SECTOR
SECOHDARY SECTOR
Natural products are changed Help in the development of the
into other forms through ways primary and secondary sectors. .
of manufacturingcotton fibre Example: Teachers, doctors,
from the plant washermen, barbers, cobblers,
lawyers, call centres, software

Gross Domestic Product (GDP)

 The value of final goods and services produced in each sector during a particular
year provides the total production of the sector for that year.
 The sum of production in the three sectors gives Gross Domestic Product
(GDP) of a country.
 GDP is the value of all final goods and services produced within a country during
a particular year.
 It shows how big the economy is. In India, the task of measuring GDP is
undertaken by a central government ministry.

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The graph below shows the production of goods and services in the three sectors.

IMPORTANCES OF TERTIARY SECTOR

 Services such as hospitals, educational institutions, post and telegraph services,
police stations, courts, village administrative offices, municipal corporations,
defence, transport, banks, insurance companies, etc. are considered as basic
services and are necessary for all people.
 The development of agriculture and industry leads to the development of services
such as transport, trade, storage etc.
 With the rise in the income of people, they start demanding more services like
eating out, tourism, shopping, private hospitals, private schools, professional
training etc.
 Over the past decade, certain new services based on information and
communication technology have become important and essential.


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Where are Most People Employed
PRIMARY SECTOR SECONDARY SECTOR TERTIARY SECTOR
 More than half of  These sectors employ less than half the people as
the workers in India compared to the primary sector.
are working in the
primary sector,
mainly in
agriculture.
 It contributes only a  These sectors produce four-fifths of the product.
quarter of the GDP.
Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) 2005.
 The central government in India made a law implementing the Right to Work in
about 625 districts of India, which is called Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) 2005.
 Under MGNREGA 2005, all those who are able to, and are in need of work in
rural areas are guaranteed 100 days of employment in a year by the government.
If the government fails in its duty to provide employment, it will give
unemployment allowances to the people.
DIVISION OF SECTORS

ORGANISED SECTOR UNORGANISED SECTOR

 It is a sector where the  The unorganised sector is
employment terms are fixed and characterised by small and
regular, and the employees get scattered units, which are largely
assured work. outside the control of the

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 government.

 It is a sector where the  There are rules and regulations but

employment terms are fixed and these are not followed since they
regular, and the employees get are not registered with the
assured work. government.
 They are registered by the  Jobs are low-paid and often not
government and have to follow its regular.
rules and regulations, which are
given in various laws such as the
Factories Act, Minimum Wages
Act, Payment of Gratuity Act,
Shops and Establishments Act etc.
 The job is regular and has fixed  Employment is not secure. People
working hours. If people work can be asked to leave without any
more, they get paid for the reason.
overtime by the employer.
 Workers enjoy the security of  There is no provision for overtime,
employment. paid leave, holidays, leave due to
sickness etc.
 People working in the organised  There are no such facilities in the
sector get several other benefits unorganised sector.
from the employers such as paid
leave, payment during holidays,
provident fund, gratuity etc.
 People get medical benefits. The
factory manager has to ensure
facilities like drinking water and a

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 safe working environment. When
they retire, these workers get
pensions as well.
 Examples of the organised sectors  Examples of the unorganised
are Government employees, sectors are Shopkeeping, Farming,
registered industrial workers, Domestic works, Labouring,
Anganwadi workers, village health Rickshaw pulling, etc.
workers etc.

ORGANISED SECTOR

PEOPLE GET MEDICAL BENEFITS.

SECURITY OF EMPLOYMENT.

JOB IS REGULAR AND HAS

FIXED WORKING HOURS

REGISTERED BY THE
GOVERNMENT

FIXED ,REGULAR, AND

ASSURED WORK.

ORGANI
SED
SECTOR

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 UNORGANISED SECTOR

. SMALL AND •EMPLOYMENT IS NOT

SCATTERED
UNITS, SECURE.

RULES AND •NO PROVISION FOR

REGULATIONS OVERTIME, PAID LEAVE,
ARE NOT HOLIDAYS, LEAVE DUE TO
FOLLOWED SICKNESS ETC.

•NO SUCH FACILITIES IN THE

JOBS ARE UNORGANISED SECTOR
LOW-PAID •SHOPKEEPING, FARMING,
AND OFTEN DOMESTIC WORKS,
NOT REGULAR. LABOURING, RICKSHAW
PULLING, ETC.

PROTECTION OF WORKERS IN UNORGANISED SECTOR

 The government can fix the minimum wages rate and working hours.
 The government can provide cheap loans to self-employed people.
 Government can provide cheap and affordable basic services like education,
health, food to these workers.
 The government can frame new laws which can provide provision for overtime,
paid leave, leave due to sickness, etc.

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 SECTORS IN TERM OF OWNERSHIP

PRIVATE SECTOR
PUBLIC SECTOR

 In the public sector, the  In the private sector, ownership of

government owns most of the assets and delivery of services is in
assets and provides all the services. the hands of private individuals or
companies.
 Railways or post office is an  Companies like Tata Iron and Steel
example of the public sector. Company Limited (TISCO) or
Reliance Industries Limited (RIL)
are privately owned companies.
 The purpose of the public sector is  Activities in the private sector are
not just to earn profits. Its main guided by the motive to earn
aim is public welfare. profits.

RESPONSIBILITIES OF GOVERNMENT
 Government raises money through taxes and other ways to meet expenses on the
services rendered by it.
 Governments have to undertake heavy spending such as the construction of
roads, bridges, railways, harbours, generating electricity, providing irrigation
through dams etc. Also, it has to ensure that these facilities are available for
everyone.
 There are some activities, which the government has to support to encourage the

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 private sector to continue their production or business.
 The government in India buys wheat and rice from farmers at a ‘fair price’ and
sells at a lower price to consumers through ration shops. In this way, it supports
both farmers and consumers.
 Running proper schools and providing quality education, health and education
facilities for all are some of the duties of the government.
 Government also needs to pay attention to aspects of human development such as
availability of safe drinking water, housing facilities for the poor and food and
nutrition, taking care of the poorest and most ignored regions of the country.
MULTIPLE CHOICE QUESTIONS
1. Which of the following activities does not belong to the primary
sector?
(a) Fishing
(b) Banking
(c) Mining
(d) forestry
2. Which of the following sectors is the largest employer in India?
(a) Primary Sector
(b) Secondary Sector
(c) Tertiary Sector
(d) IT Sector
3. The task of measuring GDP is undertaken by the
(a) central government
(b) state government
(c) provincial government
(d) all of the above
The motive of the public sector enterprises is
(a) profit making

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 (b) entertainment
(c) social welfare and security
(d) none of the above
4. NREGA (National Rural Employment Guarantee Act of 2005) has
guaranteed ………. days of employment in a year in many districts
of India. What are the correct number of days?
(a) 200 days
(b) 100 days
(c) 30 days
(d) 60 days
5. Which of the following examples does not fall under unorganized
sector?
(a) A farmer irrigating his field.
(b) A daily wage labourer working for a contractor.
(c) A handloom weaver working on a loom in her house.
(d) A doctor in a hospital treating a patient.
6. The money value of all final goods and services produced within a
country during a particular year is called:
(a) Gross domestic product
(b) Net domestic product
(c) National product
(d) Production of secondary sector
7. What is meant by GDP?
(a) Gross Dairy Product
(b) Gross Domestic Product
(c) Great Development Project
(d) Great Domestic Product
8. The sectors are classified into public and private sector on the basis

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 of:
(a)employment conditions
(b)the nature of economic activity
(c)ownership of enterprises
(d)number of workers employed in the enterprise
9. Which of the following is not applicable for a worker, who works in
the organised sector?
(a) She gets a regular salary at the end of the month
(b) She is not paid for leave
(c) She gets medical allowance
(d) She got an appointment letter stating the terms and conditions of
work when she joins work.
10. .What are the groups of classification of an economy called?
(a) Sectors
(b) Centres
(c) Types
(d)Categories
11. When we produce a good by exploiting natural resources it is
called……..?
(a) Tertiary sector
(b) Primary sector
(c )Service sector
(d) Public sector
12. Using sugarcane as raw material, we make sugar or gur, under what
sector does this activity come?
(a) Primary
(b) Industrial
(c)Tertiary

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 (d) None of these
13. Choose one correct statement from the following:
Underemployment occurs —
(a) when people are not willing to work.
(b) when people are working slowly.
(c) when people are working less than what they are capable of doing.
(d) when people are not paid for their jobs.
14. Which sector has emerged as the largest producing sector in India.
Select one from the following alternatives:
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Science and Technology sector
15. Where will you find the disguised unemployment most? Select the
correct option from those given below:
(a) Among agricultural workers working for small farm lands
(b) Among part-time industrial workers
(c) In most of the government offices
(d) In big private companies.
16. Which of the following comes under the tertiary sector?
a) transport
b) communication
c) both (a) & (b)
d) none of the above
17 The National Rural Employment Guarantee Act was passed by the
Government of India in __
a) 2005
b) 2010

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 c) 2004
d) 2014
18. Which one of the following occupation is not associated with
primary sector ?
(a) Basket Weaver
(b) Potter
(c) Gardener
(d) Priest
19 In which type of unemployment more people are employed than
required?
(a)seasonal unemployment
(b)disguised unemployment
(c ) educated unemployment
(d) all the above
ANSWERS:
1.(b) 2. (a) 3.(a) 4. (c ) 5.(b) 6.(d)
7. (a) 8.(b) 9. (c ) 10.(b) 11.(a) 12. (b)
13. (b) 14. (c ) 15. (b) 16. (a) 17. (c ) 18. (a)
19. (d) 0. (b)
Fill in the blanks with suitable words:
1. a) Workers in the _________ sector do not produce goods. (tertiary /
agricultural)
b) Most of the workers in the _________ sector enjoy job security.
(organised / unorganised)
c) A _________ proportion of labourers in India are working in the
unorganised sector.
(large / small)
d) Cotton is a _________ product and cloth is a _________ product.

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[natural /manufactured]
e) The activities in primary, secondary and tertiary sectors are_________
[independent / interdependent]
f) Tertiary sector is also called ……….. .[Primary sector / Service
sector]
g)Communication and banking come under ……….. sector.[Primary
sector / Tertiary sector]
h) Cotton cultivation falls under ……….. sector..[Primary sector /
Tertiary sector]
i) In the public sector, the ……….. owns most of the assets and provides
all services.[Government / Private]
j) In the Private sector, the ownership lies in the hands of ………..
.[Government companies / Private companies]
k) Most of the jobs are ……….. and ……….. paid in the unorganised
sector.[secure, highly/unsecure, lowly]
l) Protection and support to the unorganised sector is needed for both
……….. and ……….. development.[ economic and social / non-
economic and personal]
m) Bankers and truck drivers belong to ……….. sector of the
economy.[Secondary sector / Tertiary sector]
ANSWERS:
a) tertiary h) Primary sector
b) organised i) Government
c) large j) Private companies
d) natural,manufactured k) unsecure, lowly
e) interdependent l) economic and social
f) Service sector m) tertiary sector
g) Tertiary sector

29
2. Assertion and Reasoning:
Assertion (A): Disguised unemployment is hidden in contrast to
someone who does not have a job and is clearly visible as unemployed.
Everyone is working, no one is fully employed.
Reason (R): In actual fact, labour effort gets divided.
 A) If both assertion (A) and reason (R) are true and reason (R) is
the correct
explanation of assertion (A).
 (B) If both assertion (A) and reason (R) are true but reason (R) is
not the correct
explanation of assertion (A).
 (C) Assertion (A) is true but reason (R) is false.
 (D) Both assertion (A) and reason (R) are false.
Answer- (B) If both assertion (A) and reason (R) are true but reason
(R) is not the correct explanation of assertion (A).
3. Assertion (A) Under MNREGA 2005, those who are able to and are in
need to work in rural areas are guaranteed 100 days of employment in a
year.
Reason (R) The Central Government in India made a law implementing
the Right to Work in about 625 districts of India.
 (A) both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A) .
 (B) both Assertion (A) and Reason (R) are true but Reason (R) is
not the correct explanation of Assertion (A) .\
 (C) Assertion (A) is true but Reason (R) is false.
 (D) Assertion (A) is false but Reason (R) is correct.
Answer- (B) both Assertion (A) and Reason (R) are true but
Reason (R) is not the correct explanation of Assertion (A)

30
 3 MARK QUESTIONS
1. 1) Explain the interdependence of all three sectors giving examples
from transportation system.
Answer: All the three sectors, primary, secondary and tertiary, are
interdependent to each other in the following ways.
. i Primary sector makes possible the extraction of natural resource like
iron. This iron is then taken to the secondary sector for manufacturing
through the transportation system like trucks. The extraction process is
supported by the financing and information technological institutions.
. ii It is through the secondary sector that the natural resource iron is
changed into other forms through the process of manufacturing.
Manufacturing again need the support of the service sector in the form
of engineers, electricians, etc.
. iii Iron is changed into iron sheets and then into vehicles for
transportation. Once manufactured, the vehicles are sold through
various trading agencies. These vehicles are used for providing services
in the tertiary sector and at the same time .

What constitutes the unorganized sector in urban areas? Why do

workers in this area need protection?
Answer:
. i In the urban areas, unorganised sector comprises mainly small-scale
industry, casual workers in construction, trade and transport, street
vendors, head-load workers, garment makers, ragpickers, etc. All these
workers constitute unorganized sector in urban areas.
. ii A majority of workers in the unorganized sector are from scheduled
castes scheduled tribes and backward communities.
. iii Workers in unorganised sector urban areas need protection

31
 because, besides getting the irregular and low- paid work, these
workers also face social discrimination.They are looked down upon by
the people in urban areas.
. ivProtection and support to the unorganised sector workers is thus
necessary for both economic and social development.
How does service sector help in the development of primary and
secondary sectors? Explain with examples.
Answer:
 After primary and secondary sectors, there is a third sector called the
service sector also known as tertiary sector.
 Activities that fall under the service sector help in the development of
the primary and secondary sectors by not directly producing a good but
helping these sectors by activities that are an aid or 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 goods in godowns. We may
also need to talk to others over telephone or send letters
(communication) or borrow money from banks (banking) to help
production and trade.
 Transport, storage, communication, banking and trade are some
examples of service or tertiary sector. Since these activities generate
services rather than goods, they promote primary and secondary sectors
by providing expertise, finance, transportation, advertisement, etc
Explain with suitable examples which part of the service sector is not
growing in importance. Answer:
 The employment generation part of service sector is not growing in

32
 importance. The service sector in India employs different kinds of
people.
 At one end, there are a limited number of services that employ highly
skilled and educated workers. At the other end, there are a very large
number of workers engaged in services such as small shopkeepers,
repair persons cattle, owners transport drivers and electricians.
 These people barely manage to earn there living and yet they perform
these services because no alternative opportunity for work are available
for them.
Highlight the three factors responsible for the growth of service
sector in the Indian economy.
Answer:
Ever since the service sector got liberalized in the year 1991, it has
seen constant growth. The following are the reasons responsible for the
growth of service sector in the Indian economy.
 Increase in the income of people: Since the income level of the people
has been increasing ever since, with increasing affluence there is
increase in the demands of the services like maids, cooks, servants and
gardeners.
 Increase in population: With an increase in number of people in the
country, the demand for service sector has increased. Demands for
service like schools, health department and nursing homes have
increased.
 Increase in numbers of working women: With the passage of time there
has been a massive increase in the number of working women in India.
This has led to increase in demands in the service sector like household
help, babysitters and cooks.
How to Protect the workers under Unorganised Sector?

33
 ANSWER:
 There are many groups of vulnerable people who need protection
in the unorganised sector.
 In rural areas farmers can be supported through adequate facilities
for timely delivery of seeds, agricultural inputs, credit, storage
etc.
 In urban areas the small scale industries can be protected by
governments support for procuring raw materials and marketing
of output.
 Protection and support to farmers and workers are necessary for
economic and social development.
5 MARK QUESTIONS:
1. Explain disguised unemployment with two examples, one from
urban areas and other from rural areas.
Answer:
 Disguised unemployment is a kind of unemployment in which some
people look like being employed but are actually not employed fully.
 This situation is also known as hidden unemployment.
 It refers to a situation wherein more people are engaged in a work than
required. When the surplus workers from a rural area engaged in the
activity or the work, are removed, the production remains unaffected.
 In urban areas, there are many people who are employed. Their jobs do
not suit their qualifications. Disguised unemployment can be seen in
the service sector where painters, repair person, plumber, etc. are doing
odd jobs. Many of them do not find work on a daily basis. Taking an
example, there is a shop, which require only two persons for handling
it, but if there are three servants and one owner to look after the shop,
then this shows that two servants are in the situation of disguised

34
 unemployment.
 In rural areas, disguised employment can be seen in the agricultural
sector. Most often, all the members of a family are engaged on the
same piece of land. If a few members are withdrawn, there will no
effect on the production. So, the members who are withdrawn are in the
situation of disguised unemployment.
2. Consequences of environmental degradation do not respect national
or state boundaries.” Explain.
Answer:
 Environmental degradation is a global issue, which has been discussed
and debated over the past decades.
 It is the deterioration of the environment through depletion of resources
such as air, water and soil. It affects and depletes the ecosystem,
hampers the ozone layer and is responsible for extinction of wildlife.
 Environmental degradation is not restricted to national or state
boundaries. It hampers the surroundings irrespective of any national or
state boundaries and its harmful effects are well felt in the surrounding
states and neighbouring countries and even globally.
 For example, if India has a lot of air pollution through massive thermal
power plants and other sources, it affects its neighbouring countries
like Pakistan, Sri Lanka and Bangladesh. Acid rain and climate change
are some transcontinental issues.
 Land degradation in India affects Bangladesh as it brings massive silt
and floods. Therefore, environmental degradation is a serious issue
which has grabbed the attention of all countries irrespective of
boundaries because protecting the environment is the need of the hour
at the global level.

35
3. Explain how public sector contributes to the economic development
of nation.
Answer:
 Creation of infrastructure: Public sector promotes the economic
development since it brings about creation and expansion of
infrastructure and the infrastructure plays an important role in
economic development.
 Generates financial resources: Public Sector provides for various
employment opportunities since major part of public sector depends on
manpower and higher employment opportunities implies higher
generation of financial resources for economic development.
 Contributes to HDI: Public sector majorly contributes to the Human
Development Index since health and education industries come under
the purview of public sector.
 Availability of goods: Public sector helps in availability of goods at
moderate rates, which helps in maintaining financial security and thus
helps in economic development.
 Provides encouragement: It provides encouragement to small, medium
and cottage production units. It also strives for the creation of welfare
state

4. What is the role of government in public sector?

Answer:
The following points sum up the role of government in public sector.
 Welfare of the people: The modern state is a welfare state that looks
after the interests of its citizens. People pay different types of taxes and
expect their representatives or the government to follow policies for
their welfare. Services like railways, posts and telegraphs are run by

36
 the government for the welfare of the people.
 Large expenditure: Some activities like construction of roads need
large sums of expenditure that cannot be borne by the private sector.
So, the government takes up such activities in the interest of the people
in a democracy.
 Support of the government: There are some activities that need support
of the government in the form of subsidy such as provision of
foodgrains for the poor through ration shops. The government buys
wheat, paddy etc. at a higher price but sells at a lower price at ration
shops.
 Duty of the government: It is duty of the government to raise the living
standard of the people. It should make arrangements for quality
education and health services in order to take care of the poorest and
most ignored regions of the country through increase in expenditure in
such areas. Thus, the government takes up various activities and spends
a lot of expenditure on them.

5. Give five reasons for the rising of the tertiary sector in India
Answer:
Over the forty years, between 1970 and 71, and 2010 and 11, while
production in all the three sectors has increased, it has increased the
most in the tertiary sector. The following factors are making the
tertiary sector important in India.
 Basic services: In any country, several services such as hospitals,
educational institutions,post and telegraph services, police stations,
courts, village administrative offices, municipal corporations, defence,
transport, banks and insurance companies, are required. These can be
considered as basic services. In a developing country, the government

37
 has to take responsibility for the provision of these services.
 Development of primary and secondary sector: The development of
agriculture and industry leads to the development of services such as
transport, trade and storage. The greater the development of the
primary and secondary sectors, the more would be the demand for such
services.
 Rise in income levels: As income levels rise, certain sections of people
start demanding many more services like eating out, tourism, shopping,
private hospitals, private schools and professional training centres. We
can see this change quite sharply in cities, especially in big cities.
 Rise in information technology: Over the past decade or so, certain new
services, such as those based on information and communication
technology have become important and essential. The production of
these services has been rising rapidly.
 Globalization: Due to globalization, people have become aware of new
services and activities, and communication because of which the
tertiary sector has gained importance.

6. Describe the provisions of the National Rural employment Guarantee

Act 2005.
Answer:
 National Rural Employment Guarantee Act 2005 aims to guarantee the
right to work. It also aims at improving livelihood in rural areas.
 The following are the provisions of the NREGA.
 Eligibility: Any Indian citizen who is above the age of 18 years and
resides in the rural area is entitled to apply for work.
 Distance: Work is to be provided by the government in a radius of 5
km of the applicant if possible and in any case within the block. If the

38
 work provided is beyond 5 km of distance, extra travel allowance is to
be paid.
 Wages: Workers under NREGA are entitled to the statutory minimum
wage applicable to agricultural labourers in the state, until and unless
the central government notifies a different wage. In whichever case, the
minimum wage cannot go below Rs 60 per day.
 Timely payment: Workers are to be paid weekly or in any case not later
than a fortnight. Payment of wages should be made directly to the
person concerned on pre-announced dates.
 Entitlement: Any applicant is entitled to work within 15 days, for as
many as he/she applied, subject to a limitation of 100 days per year per
household.
7. Differentiate between Private and Public sectors :-
Public sector Private sector
The main aim of this sector is public The main aim of this sector is to earn
welfare. maximum profit.

It is controlled and managed by It is controlled and managed by an

Government individual of group of individuals.

Necessary facilities provided by All the facilities provided by

Government Individual or group of individuals.
Employment is secured. Employment is not secured.

Fixed wages and important facilities are Generally neither fixed wages nor
provided. Such as medical claim and so other important facilities are
on. provided.

39
 The sector provides basic facilities like The sector provides consumer goods
education, health, food and security to to the people. For example :-
the people, for example, BSNL, Post TISCO, Reliance and so on.
office and so on.
8. Differentiate between organized and Unorganised sector :-
Organized Unorganised sector
sector

Fixed working Working hours are not fixed.

hours.

Fixed Minimum wages. Less than minimum wages fixed by

government.

Secured employment. Employment is not secured.

Enjoyable working conditions. Working condition is not up to the

mark.
Other facilities such as medical, No such facilities provided.
gratuity, Other pension’s are;
provided.
9. Explain how the value of goods and services is calculated with an
example.
ANSWER:
 Gross Domestic Product (GDP) is the market value of the final
goods and services produced during a year within the domestic
territory of a country.
 While calculating GDP, final goods and services are counted to
avoid the problem of double counting.

40
  For e.g. a farmer sold wheat to a flour mill for Rs10 per kg. The
mill grinds the wheat and sells the flour to a biscuit company for
Rs 12 per kg. The biscuit company uses the flour, sugar and butter
to make 5 biscuit packets. It sells the biscuit to the consumer at
Rs15 per biscuit packet. Here biscuits are the final goods that are
purchased by the consumer.
 Wheat and wheat flour are the intermediate goods used in the
production of final good.
 The value of Rs15 already includes the value of flour Rs12.
Hence, only the value of final goods and services are included in
GDP.
10. Workers are exploited in the unorganised sector. Do you agree with
this view? Give reasons in support of your answer.
ANSWER:
 Yes, workers are exploited in the unorganised sector because of
the following reasons.
 There is no job security for workers because they can be firmed
from the job at any time without any reason.
 They have less number of paid holidays and sick leave.
 They have to work over time for which they are not paid
additional wages or salaries.
 They are exploited because they are out of reach of the
government control.
11. Explain the causes of unemployment in India and suggest measures
to reduce unemployment in India.
ANSWER:
a. Caste System:
The casteist society in India has led to the ruling out of a certain class of

41
 people from jobs.
b. Population Growth:
The rise in population has led to the scarcity of jobs for people,
especially the urban educated youth.
c. Agriculture is a seasonal occupation:
Agriculture is a seasonal occupation, which requires a lot of capital and
labour. After the harvest season is over, farmers struggle to find an
occupation. This is known as seasonal unemployment.
d.Defective system of education : In oureducational system there is lack
of training facilities, lack of vocational and professional guidance.
(e) Slow growth of industrialisation : Slow growth of industrialisation in
the country is yet another cause of unemployment in the urban areas.
Measures to reduce unemployment in India are:
● Introduction of government schemes and policies for the unemployed,
such as the MNREGA, PMRY, etc.
● A free education and vocational training to enhance people’s skill.
12. Answer the following questions by looking at the graph –

42
a)Which was the largest producing sector in 1973 – 74 ?
b)Which was the largest producing sector in 2013 – 14 ?
c)Can you say which sector has grown the most over 40 years ?
d) What was the GDP of India in 2013 – 14 ?
e) What does the comparison between 1973 – 74 and 2013 – 14 show ?
ANSWERS
a) Primary sector
b) Tertiary sector
c) Tertiary sector
d) Rs.5,500,000crs
e) The production in all the three sectors has increased.

43
 CHAPTER-4
MONEY AND CREDIT

GIST

KEY CONCEPT
 Money is a fascinating subject and full of curiosities.
 The history of money and how various forms were used at different
times is an interesting story.
 Credit is a crucial element in economic life so it is important to
understand this concept.
MONEY
 Money is something that can be used as a medium of exchange.
 Before the introduction of money, goods were exchanged for goods
which was known as barter system.

But there were many problems in the barter system which are as follows:
 Difficulty in calculating the value of goods.
 Double coincidence of wants is necessary condition to exchange the
things.
 Problem of divisibility
 Difficulty in storing and carrying goods over time and distance.

44
Double coincidence of wants means both parties have to agree to sell and
buy each other’s commodities. A person desires to sell exactly what the
other wishes to buy.
FUNCTIONS OF MONEY

Other advantages
 It solves the problem of double coincidence of wants
 It is very easy to carry
 There divisibility in the money.
FORMS OF MONEY

MONEY AS A MEDIUM OF EXCHANGE

45
 Money accepted as a medium of exchange because the currency is
authorised by the government of the country.
 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 law legalizes the use of rupee as a medium of payment
that cannot be refused in settling transactions in India.
 No individual in India can legally refuse a payment made in rupees.
Hence, the rupee is widely accepted as a medium of exchange.
DEPOSITS WITH BANKS
 The other form in which people hold money is as deposits with banks.
 Banks accept the deposits and also pay an amount as interest on the
deposits. In this way people’s money is safe.
 People also have the provision to withdraw the money as and when they
require.
 Since the deposits in the bank accounts can be withdrawn, these deposits
are called demand deposits.
CHEQUE:
A cheque is a paper instructing the bank to pay a specific amount from
the person’s account to the person in whose name the cheque has been
issued.
FUNCTIONS OF BANKS
 The persons who have excess money can deposit their money in the
banks.
 Banks keep only a small proportion of their deposits as cash with
themselves.
 In India banks hold about 15 per cent of their deposits as cash(CRR).
 This is kept as provision to pay the depositors who might come to

46
 withdraw money from the bank on any given day.
 Banks use the major portion of the deposits to extend loans to those
persons who required money.
 There is a huge demand for loans for various economic activities.
 Banks charge a higher interest rate on loans than what they offer on
deposits.
 The difference between what is charged from borrowers and what is
paid to depositors is their main source of income.
FUNCTIONS OF RBI (THE RESERVE BANK OF INDIA)

ISSUES
CURRENCY

REGULATES BANKER TO
MONETARY THE
POLICY gOVERNMENT

CUSTODIAN
BANKERS
OF FOREIGN
BANK
EXCHANGE

CREDIT OR LOAN
 Credit (loan) refers to an agreement in which the lender supplies
the borrower with money, goods or services in return for the
promise of future payment.

TERMS OF CREDIT
 The condition on which the lender gives the loan to the borrower is

47
known as terms of credit. In terms of credit these conditions are
included

TERMS OF CREDIT

INTEREST
RATE,

TERMS
MODE OF OF DOCUMENTA
REPAYMENT TION
CREDIT

COLLATERAL

48
POSITIVE SIDE OF CREDIT
 It helps people from all walks of life in setting up their business,
increase their income and provide support to their family needs.
 It makes it possible for the people to own or construct their own
house and get relief from monthly rent.
 People often avail themselves of credit to purchase luxury items
like vehicles, ACs, etc., which further raises their standard of
living.
 It enables us to invest in human resource. People take credit for
education, training, etc. which allows enrichment of human
resource.
 For example, Salim availed credit facility to meet the working
capital needs of production. It helped him to meet the ongoing
expenses of production, complete production on time, thereby,
increasing his income.
CREDIT - NEGATIVE SIDE
 Credit in some case pushes the borrower into a situation from
which recovery is very painful.
 The borrower will be caught in debt trap.
 Sapna, a small farmer, grows groundnut in her three acres of
land. She took a loan from the moneylender, hoping to repay the
loan, once the crop is harvested. Being hit by the pest, the crop
fails. Expensive pesticides did not make any difference. Sapna is
unable to repay the moneylender and the other year, it becomes
a bigger amount. Next year again, she took a loan for
cultivation. It is not a bumper crop this year too. Sapna earns
little, but it is not enough to repay the old loans. She had to sell a
part of the land to repay the loan. She is caught in a debt. This
situation is called debt-trap.

49
DIFFERENT SOURCES OF CREDIT
 The various types of loans can be conveniently grouped
as formal sector loans and informal sector loans.

FORMAL SOURCE OF INFORMAL SOURCE OF

CREDIT CREDIT
These sources of credit supervise These sources of credit are not
by RBI. supervised by any government
agency.
2. The rate of interest is low. 2. Here the rate of interest is high.
3. For these sources of credit 3. For these sources of credit
collateral is compulsory. collateral is not compulsory.
4. Most of Rich, business class 4. Most of poor persons like
and middle class use these sources peasant, farmers and labours use
of credit to take loan. these sources of credit to take
loan.
5. It included the loan taken from 5. It included the loan taken from
banks and cooperatives. landowners, friends, relatives etc.

50
 SOURCES OF CREDIT

Formal sources InFormal sources

of credit of credit

 Supervise by RBI.  Not

supervised by any
 Low interest rate government agency.
 Collateral is  High interest rate .
compulsory.  Collateral is not
 Loan taken from banks compulsory.
and cooperatives  Peasant, farmers and

 Rich, business class labours use these

and middle class use  loan taken from
these landowners, friends,
relatives

IMPORTANCE OF CHEAP AND AFFORDABLE CREDIT

Cheap and affordable credit is crucial for the country’s development
because: -
 More lending would lead to higher incomes and encourage people to
invest in agriculture, engage in business and set up small industries.
 Cheap credit will enable more investment. This leads to acceleration
of economic activity.
 Cheap credit would also allow weaker sections of society to access
formal sector of lending and get rid of from informal moneylenders.
 Affordable credit would also end the cycle of debt trap.
 Cheap and easy terms of credit would inspire better investment in

51
 technology and thus increase competition.
SELF-HELP GROUPS
A group of 15 to 20 poor villagers, especially women, who regularly pool
money at regular intervals to meet the requirement of money in future at
very low interest rate, is known as SHG.
ADVANTAGES OF SHG’S

IMPORTANCES OF SHGS
 Self-Help Groups are emerging as an important source of credit
because:
 The members can take loans from the groups to meet their daily
needs.
 All decisions regarding savings and loans are taken by the
members of the group.
 They charge less interest on the loans than what the moneylenders
charge.
 If the group is regular in its savings, they can also take loan from
the bank. Loan is sanctioned in the name of the group. The group
is responsible for the repayment of loan
 They help borrowers to overcome the problem of collateral.
 They have freed borrowers from the clutches of the moneylenders.
 Not only does it help women to become financially self-reliant, the

52
 regular meetings of the group provide a platform to discuss and act
on a variety of social issues such as health, nutrition, domestic
violence, etc.

MULTIPLE CHOICE QUESTIONS

1. 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. Answer: (d)
Availability of money as a medium of exchange
2. Which one of the following is not a modern form of money?
(a) Demand Deposits
(b) Paper currency
(c) Coins
(d) Precious metal Answer: (d) Precious metals
3 Which one of the following is the important characteristic of
modern form of currency?
(a) It is made from precious metal
(b) It is made from thing of everyday use
(c) It is authorised by the commercial banks
(d) It is authorised by the Government of the country
Answer: (d) It is authorised by the Government of the country
4. Formal Sources of credit include:
(a) money lenders
(b) co-operatives
(c) Employers
(d) Finance companies Answer: (b) co-operatives.

53
5. Which one of the following is NOT an informal sector loans for
poor rural household in India?
(a) Commercial Banks
(b) Moneylenders
(c) Traders
(d) Landlords Answer: (a) Commercial Banks
6. In a SHG most of the decisions regarding loan activities are taken
by
(a) Banks
(b) Members
(c) Non-government organizations
(d) Cooperatives Answer: (b) Members
7. Banks do not give loans:
(a) to small farmers
(b) to marginal farmers
(c) to industries
(d) without proper collateral and documents
Answer: (d) without proper collateral and documents
8. 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
Answer: (c) State Bank of India
9. Which one of the following is the important characteristic of
modern form of currency?
(a) It is made from precious metal

54
 (b) It is made from thing of everyday use
(c) It is authorised by the commercial banks
(d) It is authorised by the Government of the country
Answer: (d) It is authorised by the Government of the country
10. Which one of the following is the main source of credit for the rich
households?
(a) Informal
(b) Formal
(c) Both formal and informal
(d) Neither Formal nor informal Answer: (b) Formal
11. Which one of the following is not included in the terms of credit?
(a) Rate of Interest
(b) Mode of payment
(c) Rate of saving
(d) Collateral Answer: (c) Rate of saving
12. What portion of deposits are kept by the banks for their day to day
transaction?
(a) 10%
(b) 15%
(c) 20%
(d) 25% Answer: (b) 15%
13 Banks use the major portion of the deposit to:
(a) Keep reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of the bank Answer: (c) Extend loans
14. Terms of credit are with respect to:
(a) interest rate

55
 (b) collateral
(c) documentation
(d) all the above Answer: (d) all the above
15. At present which form of money is increasingly used apart from
paper money?
(a) Commodity money
(b) Metallic money
(c) Plastic money
(d) All the above
Answer: (c) Plastic money
16. Which state accounts for maximum percentage of SHGs (self-help
groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka Answer: (a) Andhra Pradesh
17. Who supervises the credit activities of lenders in the informal
sector?
(a) Central Bank of India
(b) Commercial banks
(c) Moneylenders
(d) None
Answer: (d) None
18. Which of the following is not a source of rural credit?
(a) Regional rural banks
(b) Moneylenders
(c) Traders
(d) Government Answer: (d) Government

56
19. Which state accounts for maximum percentage of SHGs (self-help
groups) in bank credit?
(a) Andhra Pradesh
(b) Tamil Nadu
(c) Kerala
(d) Karnataka Answer: (a) Andhra Pradesh
20. Regional Rural Banks were set up in ________.
(a) 1969
(b) 1979
(c) 1989
(d) 1999 Answer: (a) 1969
21. Rate of interest charged by moneylenders as compared to that
charged by banks is:
(a) lower
(b) same
(c) slightly higher
(d) much higher Answer: (d) much higher
22. Who supervises the functioning of formal sources of loans?
(a) Reserve Bank of India
(b) Central government
(c) State government
(d) None
Answer: (a) Reserve Bank of India
23. Formal sources of credit include
(a) banks
(b) moneylenders
(c) employers
(d) all the above

57
 Answer: (a) banks
24. Which of the following is a major reason which prevents the poor
from getting bank loans?
(a) Absence of collateral (security)
(b) Non-repayment of loans
(c) Higher interest rates
(d) Documentation
Answer: (a) Absence of collateral (security)
25. Who helps the borrowers to overcome the problem of lack of
collateral?
(a) Self-help group (SHG)
(b) State government
(c) Employers
(d) Moneylenders
Answer: (a) Self-help group (SHG)
26. Which of the following is not an advantage of self-help group?
(a) Grant of timely loans
(b) Reasonable interests
(c) A platform to discuss various issues
(d) Does not help women to become self-reliant.
Answer: (d) Does not help women to become self-reliant.
27 Fill in the Blanks
1. …………. implies the direct exchange of goods against goods
without the use of money.
2. …………. may be defined as anything which is generally accepted
by people in exchange of goods and services or in repayment of debts.
3. In India, the law legalises the use of …………. as a medium of
payment that cannot be refused in settling any transaction.

58
 4. Money as a medium of exchange has removed the problem of
…………. of wants.
5. Modern forms of money include currencies which are …………. and
………….
6. …………. help in pooling the savings of their members, who are
poor women to meet their credit needs.
7. The share of formal sector credit is …………. for the richer
households as compared to the poor households in India.
8. Absence of …………. as a guarantee is a major cause that prevents
poor people from obtaining loans from formal sector sources, such as
commercial banks.
Answers
1.Barter system
2. Money
3. rupee
4. double coincidence
5. paper notes, coins
6. Self Help Groups
7. higher
8. Collateral
28 What kind of transaction does this picture show?

29 What does this picture depict? Give one word that explains all that
59
 is shown in the picture which is an essential part in the formal
source of credit.

30
Given below are two pictures of credit transaction. Name it?

Directions: - In the following questions, the

Assertions (A) and Reason(s) (R) have been put forward. Read both
statements carefully and choose the correct answer from the below:
(a) Both assertion and reason are true, and reason is the correct
explanation of assertion.
(b) Both assertion and reason are true, but reason is not the correct
explanationof assertion.
(c) Assertion is true, but reason is false.
(d) Both assertion and reason are false.
31 Assertion (A): Collateral is an asset that the borrower owns (such as
land, building, vehicle, livestock, deposits with banks) and uses this as
a guarantee to a lender until the loan is repaid.
Reason (R): Collateral is given as the lender can sell the collateral to
recover the loan
amount if the borrower fails to repay the loan.
Answer – (a) Both assertion and reason are true, and reason is the
correct explanation of assertion.
32 Assertion (A): Banks charge a higher interest rate on loans than what
they offer on deposits.

60
 Reason (R): The difference between what is charged from borrowers
and what is paid to
depositors is their main source of income.
Answer – (a) Both assertion and reason are true, and reason is the
correct explanation of assertion.
33 Assertion (A): Credit would be useful or not depends on the risk
involved in a situation.
Reason (R): The chance of benefitting from credit ishighest in
agriculture sector.
Answer – (c) Assertion is true, but reason is false.
34 4.) Assertion (A): Banks keep only a small proportion of their deposits
as cash with themselves.
Reason (R): Banks in India these days hold about 15 per cent of their
deposits as cash.
Answer – (b) Both assertion and reason are true, but reason is not
the correct explanation of assertion.
35 Assertion (A): The terms of deposit are same for all credit
arrangements.\
Reason (R): Credit arrangements are very complex process so to
remove the complexities same terms of deposits are used
Answer – (d) Both assertion and reason are false
36 Assertion (A): The facility of demand deposits makes it possible to
settle payments without the use of cash.
Reason (R) : Demand deposits are paper orders which make it
possible to transfer money from one person’s account to another
person’s account.
Answer – (d) Both assertion and reason are false.
37 Assertion (A): The Reserve Bank of India supervises the functioning of

61
 formal sources of loans.
Reason (R): The RBI sees that the banks give loans not just to profit-
making businesses and traders but also to small cultivators, small scale
industries, to small borrowers etc.
Answer – (b) Both assertion and reason are true, but reason is not
the correct explanation of assertion.
38 Assertion (A): In India, no individual can refuse to accepta payment
made in rupees.
Reason (R): Rupee is the legal tender in India
Answer – (a) Both assertion and reason are true, and reason is the
correct explanation of assertion.
39 Assertion (A): Sohan took credit in the form of advance payment from
a buyer and he delivered the goods to the buyer on time and also earned
profit. The credit made sohan better off in this situation.
Reason (R): Credit can never push a person into a debt trap.
Answer – (c) Assertion is true, but reason is false.
40 Assertion (A): The modern currency is used as a medium of exchange;
however, it does not have a use of its own.
Reason (R): Modern currency is easy to carry
Answer – (b) Both assertion and reason are true, but reason is not
the correct explanation of assertion.
VERY SHORT ANSWER ( 2 MARKS)
1 How is money beneficial in transactions?
Answer: Money is beneficial in transactions. It eliminates the need for
double coincidence of wants. It acts as a medium of exchange.
2 How does the use of money make it easier to exchange things? Give
an example.
Answer: A person holding money can easily exchange it for any

62
 commodity or service that he or she might want.
Example: The shoe manufacturer will first exchange shoes that he has
produced for money and then exchange the money for wheat.
3 Why one cannot refuse a payment made in rupees in India?
Answer: One cannot refuse a payment made in rupees in India:
Because it is accepted as a medium of exchange. The currency is
authorized by the government of the country.
4 What does modern form of money include?
Answer: Modern form of money includes currency—that is paper notes
and coins.
5. Does modern currency have any use of its own?
Answer: Unlike the things that were used as money earlier, modern
currency is not made of precious metal such as gold, silver and copper.
And unlike grain and cattle, they are neither of everyday use. The
modern currency is without any use of its own.
6. What are ‘demand deposits’?
Answer: People deposit their money in the bank as it earns interest.
Since the deposits in the bank accounts can be withdrawn on demand,
these deposits are called demand deposits.
7. What is a ‘cheque’?
Answer: A cheque is a paper, instructing the bank to pay a specific
amount from the person’s account to the person on whose name the
cheque has been issued.
8. What is the main source of income of the banks?
 Answer: Banks charge a higher rate of interest on loans than
what they offer on deposits.
 The difference between what is charged from borrowers and
what is paid to depositors is their main source of income.

63
9. What is ‘credit’?
Answer: Credit (loan) refers to an agreement in which the lender
supplies the borrowers with money, goods or services in return
for the promise of future payment.
10.. What is a ‘debt trap’?
Answer: A debt trap means the inability to repay the credit amount. It
is a situation where the debtor or borrower could not be able to repay
the amount borrowed .
11 Why are most of the poor households deprived from the formal
sector of loans? [
 Answer: Most of the poor households are deprived from the
formal sector of loans because of:
 Lack of collateral. They are illiterate and Cannot fulfill the
formalities of the formal sector of loans.

12. Prove with an argument that there is a great need to expand formal
sources of credit in rural India.
Answer: To expand formal sources of credit in rural India, dependence
on informal sources of credit has to be reduced.
13 Amit is using his money to buy assets like house, commercial land
and machines. Write what is he actually doing?
Answer: He is investing his money with a hope of earning profits from
these assets.
SHORT ANSWER QUESTIONS (3MARKS)
1. Give an example to show that double coincidence of wants is
necessary in a barter system.
 A shoe manufacturer wants to sell shoes in the market and buy

64
 wheat.
 The shoe manufacturer will first exchange shoes that he had
produced for money, and then exchange the money for wheat.
Imagine
 It would be difficult if the shoe manufacturer had to directly
exchange shoes for wheat without using money.
 He would have to look for a wheat growing farmer, who not
only wants to sell wheat but also wants to buy the shoes in
exchange.
 That is, both parties have to agree to sell and buy each other’s
commodities. This is known as double coincidence of wants.
2. How is modern form of currency accepted as a medium of
exchange? Or
Why is currency accepted as a medium of exchange?
 Modern forms of money include currency paper notes and coins.
 Modern currency is not made of precious metals such as gold,
silver and copper.
 The modern currency is without any use of its own. In India,
Reserve Bank of India issues currency notes on behalf of the
Central government.
 As per the Indian law, no other individual or organisation is
allowed to issue currency.
 No individual in India can legally refuse a payment made in
rupees.
3. State three disadvantages of the barter system.
 In a barter system, double coincidence of wants is required.
 Here, the person is required to sell only what the other wishes to
buy.

65
  If both parties do not agree, the goods cannot be exchanged for
goods. money.
 The facility of Cheques against demand deposits makes
settlement of payments possible without using cash.
 Since demand deposits are accepted widely as a means of
payment, along with currency, they constitute money in the
modern economy.
4. What are ‘demand deposits’?
Answer:
 Workers who receive their salaries at the end of each month have
extra cash at the beginning of the month.
 This extra cash is deposited with the bank by opening a bank account
in their name.
 Banks accept the deposits and also pay an interest rate on the
deposits.
 In this way, people’s money is safe with the banks and it earns an
interest as well.
 People also have the provision to withdraw the money as and when
they require.
 Since the deposits in the bank accounts can be withdrawn on
demand, these deposits are called demand deposits.

5. How are demand deposits accepted as a means of payment?

 Demand deposits offer another interesting facility. It helps in
making the payment in cheque.
 A cheque is a paper instructing the bank to pay a specific
amount from the person’s account to the other person or to the
account holder.

66
 Thus, we see that demand deposits share the essential features of
6. Illustrate with examples the role of ‘loan’ in ‘businesses’.
Answer: Role of Loan
 Loan is a crucial element in economic life and plays a vital and
positive role.It helps to increase earnings.
 Salim obtains credit to meet the working capital needs of
production. The credit helps him to meet the ongoing expenses of
production, complete production on time, and thereby increase
his earnings. Credit therefore plays a vital and positive role in
this situation.
 It makes a person economically better off than before It helps the
poor and needy at the time of crisis.
 It helps the person to meet the ongoing expenses of production
and complete production on time.
 In another situation, because of the crop failure, loan pushes the
person into a debt trap.Examples of Salim and Laksmi could be
given.
7. Why does the formal or informal sector asks for a collateral?
 Every loan agreement specifies an interest rate which the
borrower must pay to the lender along with the repayment of the
principal.
 In addition, lenders may demand a collateral or an asset that the
borrower owns to use it as a guarantee until he repays the loan.
 Interest rate, collateral and documentation requirement and the
mode of repayment are the terms of credit required for formal or
informal sectors for loans
8. How are cooperatives functioning in the rural areas to solve the
problem of credit?

67
  Besides banks, the other major source of cheap credit in rural
areas are the cooperatives.
 Members of a cooperative, pool their resources for cooperation in
certain areas.Cooperatives form members, who accept deposits
from its members.
 With these deposits as collateral, the cooperative obtains a large
loan from the bank. These funds are used to provide loans to
members. Once these loans are repaid, another round of lending
can take place.
9. Identify transactions involving money in our day-to-day life.
 There are several transactions involving money in any single day.
In many of these transactions, goods are being bought and sold
with the use of money.
 It eliminates the need for double coincidence of wants.In some of
these transactions, services are being exchanged with money.
 For some, there might not be any actual transfer of money taking
place now but a promise to pay money later.
10 Why are transactions made in money?
 A person holding money can easily exchange it for any
commodity or service that he or she might want.
 Thus, everyone prefers to receive payments in money and then
exchange the money for things that they want.
 Take the case of a shoe manufacturer. He wants to sell shoe in
the market and buy wheat. The shoe manufacturer will first
exchange shoe that he has produced for money and then
exchange the money for wheat.
11. State any three advantages of an ATM.
 All Time Money is a provision called the Automated Teller

68
 Machine. In case of an ATM, direct interaction with the bank is
not required.
 Money can be withdrawn from the ATM during the entire
twenty-four hours in a day, whereas banks close their public
dealings at a particular time, binding the depositor to come
within that stipulated period. Banks are efficient medium of
exchange:
 Demand deposits share the essential features of money.
 Hence Demand Deposit is considered modern form of money.
 The facility of cheque against demand deposit makes it possible
to directly settle payment without the use of cash.
 Demand deposits are accepted widely as a means of payment
12 Explain any three loan activities of banks in India.
Loan activities of Banks in India:
 Banks use the major portion of the deposits to extend loans.
Banks make use of the deposits to meet the loan requirements of
the people.
 Banks mediate between those who have surplus funds (the
depositors) and those who are in need of these funds (the
borrowers). Banks charge a higher interest rate on loans than
what it offers on deposits.
13 Which objects were used as money?
 Before the introduction of coins, a variety of objects were used as
money.
 For example, since the very early ages, Indians used grains and
cattle as money. cowri shells were also used as money.
 Thereafter, came the use of metallic coins a phase which
continued well into the last century.

69
14. How do farmers get into debt trap?
 Farmers usually take crop loans at the beginning of the season and
repay the loan after harvest. Sometimes, the failure of the crop
makes loan repayment impossible.
 So, the farmers have to sell a part of their land to repay the loan.
 Credit in such a condition pushes the borrowers into a situation
from which recovery is painful and they get into the debt trap.
15 Self-help Groups support has brought about a revolutionary
change in the rural sector.
 The idea is to organize rural poor, in particular women, into
small Self Help Groups (SHGs) and pool their savings. Members
can take small loans from the group itself to meet their needs.
The group charges interest on these loans but this is still less than
what the moneylender charges.
 If the group is regular in savings, it becomes eligible for availing
loan from the bank. Loan is sanctioned in the name of the group
and is meant to create self – employment opportunities for the
members. The SHG is responsible for repayment of the loan,
hence, banks get ready to give loans without collateral.
 Self-help, self-reliance and creating a support system and
platform to discuss and act on a variety of social issues such as
health, nutrition, domestic violence etc.
16. Why do we need to expand formal sources of credit in India? Give
three reasons.
 The cost of informal loans is much higher and often leads to a
debt trap. Also, people who might wish to start a new enterprise
by borrowing may not do so because of the high cost of
borrowing in such a case.

70
  Most loans from informal lenders carry a very high interest rate
and do little to increase the income of the borrowers. Thus, it is
necessary that banks and cooperatives increase their lending
particularly in the rural areas, so that the dependence of the poor
on informal sources of credit reduces.
 It is important that the formal credit is distributed more equally
so that the poor can benefit from the cheaper loans.
17. Dhananjay is a government employee and belongs to a rich
household whereas Raju is a construction worker and comes from
a poor rural household. Both are in need and wish to take loan.
Create a list of arguments explaining who between the two would
successfully be able to arrange money from a formal source. Why?
Answer: Dhananjay will be able to get loan from a formal source.
Arguments: Banks are not present everywhere in rural India. Even
when they are present, getting a loan from a bank is much more
difficult than taking a loan from informal sources. Bank loans require
proper documents and collateral. Absence of collateral is one of the
major reasons which prevents the poor from getting bank loans.
Informal lenders such as moneylenders, on the other hand, know the
borrowers personally and hence are often willing to give a loan without
collateral.
18. Explain the values which a borrower should observe for the proper
use of loan taken.
 Borrower should observe the following for the proper use of
loan taken:
 Proper planning of both for borrowing and spending of loan
amount.Use the loan for the purpose for which it has been
borrowed.

71
  Follow the terms and conditions of the credit. To develop
consciousness to repay the loan on time.
19. “Deposits with the banks are beneficial to the depositers as well as
to the nation”. Examine the statement. Answer: Deposits with the
banks are beneficial to the depositors as well as to the nation.
Benefits to the Depositors
(i) Banks accepts the deposits and pay interest to the depositor.
(ii) People’s money is safe with the banks.
(iii) People can withdraw the money as and when they require.
Benefits to the Nation
(i) Banks use money of the depositor to afford loans.
(ii) There is a huge demand for loans for various economic activities.
(iii) Banks mediate between those who have surplus funds and those
who are in need of these funds. Thus it helps in the economic
development of the nation.
20. Credit has its own unique role for development’. Justify the
statement with arguments. OR
Describe the vital and positive role of credit. Answer: “Credit has its
own unique role for development”
(i) Credit helps to increase earning and therefore the person is better off
than before. For example, as in (Salim’s case)
(ii) Credit helps to earn money as well as capital for the future.
(iii) Credit helps in the development of infrastructure of the society that
leads to the overall development.
21. How is money transferred from one bank account to another
bank account? Explain with an example.
Answer: Money Transfer from one bank account to another bank
account. If a person has to make a payment to his or her friend and

72
 writes a cheque for a specific amount, this means that the person
instructs his bank to pay this amount to his friend. His friend takes this
cheque and deposit in his account in the bank. This said amount is
transferred from one bank account to another bank account Money
Transfer from one bank account to another bank account. If a person
has to make a payment to his or her friend and writes a cheque for a
specific amount, this means that the person instructs his bank to pay
this amount to his friend. His friend takes this cheque and deposit in his
account in the bank. This said amount is transferred from one bank
account to another bank account.
22. How is the concept of Self Help Groups important for poor people?
Give your view point
Answer:
(i) Self Help Groups help in pooling the savings of the members, who
are poor people.
(ii) Members can get timely loans for a variety of purposes.
(iii) They get loan at a reasonable rate of interest.
(iv) It helps borrowers to overcome the problem of lack of collateral
and documentation.
(v) It saves them from exploitation of the money lenders.
(vi) This interest income becomes an extra source of income of the
members
LONG ANSWER TYPE QUESTIONS (5 MARKS
1. Review any three merits and any two demerits of ‘formal sector of
credit’ in India.
Answer: Merits
(i) Helps to meet the working capital needs of production.
(ii) Helps in ongoing expenses of production.

73
 (iii) Helps in completing production on time.
(iv) Helps in increasing earnings.
(v) Low interest rates.
(vi) Easy access of loans to small cultivators and small scale industries.
Demerits
(i) Difficulty in obtaining loans.:
(ii) Collateral issues.
(iii) Documentation could be a problematic issue for few.
(iv) Lack of credibility in rural areas.
2. Why are poor households still dependent on informal sources of
credit? OR
“Poor households still depend on informal sources of credit.”
Support the statement with examples.
 Banks are not present everywhere in rural India.
 Even if they are present, getting a loan from a bank is much more
difficult than taking a loan from informal sources.
 Bank loans require proper documents and a collateral. Absence of
collateral is one of the major reasons which prevents the poor from
getting bank loans.
 Informal lenders like moneylenders know the borrower personally
and hence, are often willing to give a loan without a collateral.
 The borrowers can, if necessary, approach the moneylender even
without repaying their earlier loans.
 However, the moneylenders charge very high rates of interest, keep
no records of the transactions and harass the poor borrowers.
3. What are the advantages of SHGs?

3. “Banks are efficient medium of exchange.” Support the statement

74
 with arguments.
Answer:

4. What are the differences between formal and informal sources of

credit?
FORMAL SOURCE OF CREDIT INFORMAL SOURCE OF
CREDIT
These sources of credit supervise by These sources of credit are not
RBI. supervised by any government
agency.
2. The rate of interest is low. 2. Here the rate of interest is high.
3. For these sources of credit collateral 3. For these sources of credit collateral
is compulsory. is not compulsory.
4. Most of Rich, business class and 4. Most of poor persons like peasant,
middle class use these sources of credit farmers and labours use these sources
to take loan. of credit to take loan.
5. It included the loan taken from 5. It included the loan taken from
banks and cooperatives. landowners, friends, relatives etc.
5. What is a cheque? How does it replace currency?
. i A cheque is a paper instructing the bank to pay a specific amount
from the person’s account to the person in whose name the
cheque has been drawn.

75
 . ii The facility of cheque against demand deposits makes it possible
to directly settle the payments without the use of withdrawal.
. iii For payment through cheque, the payer who has an
account with the bank, makes out a cheque of a specific amount.
. ivThe money is transferred from one bank account to another in a
couple of days. The transaction is complete without any payment
of cash.
6. What is credit? How can credit be both an asset as well as a debt
trap?
i. Credit refers to an agreement in which the lender supplies the
borrower with money, goods or services in return for the promise
of future payment.
ii. Example of credit as an asset: During the festival season, a
shoe manufacturer has received an order of making shoes in bulk,
within a month’s time. To complete production, he hired some
extra workers and had to purchase the raw materials.
iii. He asks the supplier to supply leather now and promises to pay
him later. Then he took some advance payment from the trader.
iv. By the end of the month, he is able to deliver the order, make a
good profit and repay the money he had borrowed.
v. Example of credit as debt trap: A farmer picks up the loan
from a moneylender to meet the expenses of cultivation. But
unfortunately the crop is hit by the pests and fails.
vi. So, he is unable to repay the loan and debt grows larger with
interest. Next year, he picks up a fresh loan and is able to have a
normal crop that year. But earnings are not enough to pay the
earlier debt. So, he is caught in a debt trap. He can repay the
loan, only after selling a part of the land.

76
 vii. In shoemaker’s case, credit plays a vital and positive role,
whereas in farmer’s case credit pushes the borrower into a
situation from which recovery is very painful.
7. What are the terms of credit?
 Every loan agreement specifies an interest rate which the
borrower must pay to the lender along with repayment of the
principal.
 In addition, lender may demand collateral, i.e., an asset that the
borrower owns and uses this as a guarantee until the loan is
repaid.
 If the borrower fails to repay the loan, the lender has the right to
sell the collateral to obtain payment.
 Terms of credit comprise interest rate, collateral and
documentation requirement, and the mode of repayment.
 The terms of credit vary substantially from one credit
arrangement to another. They may vary depending on the nature
of the lender and the borrower.
8. “The rich households are availing cheap credit from formal lenders
whereas the poor households have to pay a heavy price for
borrowing.” Comment.
Answer:
 The formal sector still meets only about half of the total credit needs
of the rural people.
 The remaining credit needs are met from informal sources.
 Most loans from informal lenders carry a very high interest rate and
do little to increase the income of the borrowers.
 Thus, it is necessary that banks and cooperatives increase their
lending particularly in the rural areas, so that the dependence on

77
 informal sources of credit reduces.
 While formal sector loans need to expand, it is also necessary that
everyone receives these loans.
 At present, it is the rich households who receive formal credit
whereas the poor have to depend on the informal sources.
9. Who takes the important decisions of SHGs and why?
OR
“‘Self Help Groups’ help borrowers to overcome the problem of
lack of collateral.” Examine the statement.
Answer:
 Most of the important decisions regarding the savings and loan
activities are taken by the group members.
 The group decides as regards the loans to be granted—the purpose,
amount, interest to be charged, repayment schedule, etc.
 It is the group which is responsible for the repayment of the loan.
 In case of default by any one member, it is followed up seriously by
other members in the group.
 Because of this feature, banks are willing to lend to the poor women
when organised in SHGs even though they have no collateral as
such.
10. Write a note on the success story of ‘Grameen Bank of
Bangladesh’.
 Grameen Bank of Bangladesh was founded by Prof. Muhammad
Yunus (a recipient of Nobel Peace Prize for the year 2006) in
year 1970.
 Over the last 42 years i.e., from 1976 to 2017, the operations of
the bank spread to a large area of Bangladesh.
 The bank was started with a very small project and in year 2005,

78
 it spread across 40,000 villages with 6 million borrowers in
various parts of Bangladesh. Most of the borrowers of this bank
are women and belong to poor sections of society.
 These poor women have started ‘self-employment’ projects by
taking credit from this Grameen bank.
 This credit has positive impact on these women as they started a
gainful employment, which helped them not only to repay their
loan but also to earn a good living for themselves and their
family.
11. . How can the formal sector loans be made beneficial for poor
farmers and workers? Suggest any five measures.
 Formal sector loans can be made beneficial for poor farmers and
workers in the following ways:
 It is required to create awareness among farmers about formal
sector loans. Process of providing loans should be made easier.
 It should be simple, fast and timely.
More number of Nationalised banks/cooperative banks should
be based in rural sector.
 Banks and cooperatives should increase facility of providing
loans so that dependence on informal sources of credit reduces.
 The benefits of loans should be extended to poor farmer
andsmall scale Industries.
While forma sector loans need to expand, it is also necessary that
everyone receives these loans.
SOURCE BASED QUESTIONS
1. The Reserve Bank of India supervises the functioning of formal sources
of loans. For instance, we have seen that the banks maintain a minimum
cash balance out of the deposits they receive. The RBI monitors the

79
banks in actually maintaining cash balance. Similarly, the RBI sees that
the banks give loans not just to profit -making businesses and traders
but also to small cultivators, small scale industries, to 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. There is no
organisation which supervises the credit activities of lenders in the
informal sector. They can lend at whatever interest rate they choose.
There is no one to stop them from using unfair means to get their
money back
 Which Organisation supervises the credit activities of formal
sources of credit in India?
 To whom all banks lend loans?
 To whom does the banks submit information regarding their
borrowing and lending activities?
Who supervises the credit activities of lenders in the informal sector?

80
 CHAPTER-4
GLOBALISATION AND THE INDIAN ECONOMY
PRODUCTION ACROSS COUNTRIES:
 Until the middle of the twentieth century, production was largely organized
within countries.
 Colonies such as India export the raw materials and food stuff and imported
finished goods.
 Trade was the main channel connecting distant countries.
 This was done before large companies called multinational corporation
(MNCs) emerged on the scene.

 An MNC is a company that owns or controls production in more than one

nation.
 MNCs set up offices and factories for production in regions where they
can get cheap labour and other resources.
 MNCs are not only selling its finished products globally but more
important, the goods and services are produced globally.
 As a result, production is organized in increasingly complex ways.

81
 INTERLINKING PRODUCTION ACROSS COUNTRIES:

FOREIGN TRADE AND INTEGRATION OF MARKETS:

 Foreign trade creates an opportunity for the producers to reach beyond

the domestic markets i.e., markets of their own countries.
 For the buyers, import of goods produced in another country is one way

82
 of expanding the choice of goods beyond what is domestically produced.
 In general, with the opening of trade, goods travel from one market to
another.
 Foreign trade thus results in connecting the markets or integration of
markets in different countries.
WHAT IS GLOBALISATION?

FACTORIES THAT HAVE ENABLED GLOBALISATION:

83
Liberalization of foreign trade and foreign investment policy:

 Tax on imports is an example of trade barrier. It is called a barrier

because some restriction has been set up.
 The government can use trade barriers to increase or decrease foreign
trade and to decide what kind of goods and how much of each, should
come into the country.
 The Indian government, after Independence, had put barriers to foreign
investment.
 This was considered necessary to protect the producers within the country
from foreign competition.
 Barriers to foreign trade and foreign investment were removed to a large
extent.
 This meant that goods could be imported and exported easily and also
foreign companies could set up factories and offices here.
Removing barriers or restriction set by the government is what is known
as liberalization.
 The government imposes much less restriction than before and is

84
 therefore said to be more liberal.

WORLD TRADE ORGANISATION:

 Liberalization of foreign trade and investment in India was supported by
some very powerful international organization.
 These organizations say that all barriers to foreign trade and investment
that are harmful. There should be no barriers.
 World Trade Organization (WTO) is one such organization whose aim is
to liberalize international trade.
 Though WTO is supposed to allow a free trade for all, in practice, it is
seen that the developed countries have unfairly retained trade barriers.
 On the other hand, WTO rules have forced the developing countries to
remove the trade barriers.
IMPACT OF GLOBALISATION IN INDIA:

85
THE STRUGGLE FOR A FAIR GLOBALISATION:
 People with education skill and wealth have made the best use of new
opportunities.
 On the other hand, there are many people who have not shared the
benefits.
 Fair globalization would create opportunities for all and also ensure that
the benefits of globalization are shared better.
 The government can play a major role in making this possible.
 Its policies must protect the interests, not only of rich and the powerful
but all the people in the country.
 It can support small producers to improve their performance till the time
they become strong enough to compete.
 If necessary, the government can use trade and barriers.
 In the past few years, massive campaigns and representatives by people’s
organizations have influenced important decisions relating to trade and
investments at the WTO.
 This has demonstrated that people also can play an important role in the
struggle for fair globalization.

Q1. What is the integration between countries through foreign trade and
foreign investments by multinational corporations (MNCs)?
A. International trade
B. Globalization
C. International investment
D. World trade
Q2. ………… have been a major force in the globalization process
connecting distant regions of the world?
A. Traders

86
 B. International companies
C. Multinational corporations
D. Businesses houses
Q3, What are the key ideas behind understanding the process of
globalisation and its impact?
A. Integration of production
B. Integration of gross profits
C. Integration of markets
D. A & C
Q4. Which factors has globalization been facilitated by?
A. Rapid improvements in technology
B. Liberalisation of trade and investment policies
C. Pressures from international organisations
D. All
Q5. What is a multinational corporation-MNC?
A. A corporation that does international trade
B. Manufactures goods for other countries
C. A company that owns or controls production in more than one nation
D. None of the above
Q6. MNCs set up offices and factories for production in regions where
they can get…………………..?
A. Cheap labour and other resources.
B. Good market for profits
C. They can make great sales
D. More industry
Q7. MNCs generally manufacture goods and market them……….
A. From one location in a single country
B. From different locations in a single

87
 C. From different locations in different countries
D. All
Q8. The money that is spent to buy assets such as land, building,
machines and other equipment by MNCs is called………?
A. Investment
B. Foreign Investment
C. Domestic investment
D. International investment
Q9. What advantage do the local companies have by setting up joint
production with MNCs?
A. More profit
B. More resources
C. Latest technology for better production
D. Foreign exchange
Q10. The most common route for MNC investments is to buy up
……………….
A. Local resources
B. Local technology
C. Excess land for factories
D. Local companies
CHECK YOUR ANSWERS
1 2 3 4 5 6 7 8 9 10
B C D D C A C B C D
Q11. In which other way do the MNCs control production?
A. By land of local country
B. Send the latest technology from parent country
C. place orders for production with small producers, which then sell
these under their own brand name

88
 D. Send the brand name to the company they buy

Q12. Ford Motors came to India in 1995, by 2017, Ford Motors was
selling …………….. cars in the Indian markets?
A. 88000
B. 85000
C. 87000
D. 84000
Q13. Which Indian companies have invested abroad?
A. Coca Cola
B. Ranbaxy
C. Nike
D. Pepsi
Q14. Within a year, ……….. of the toy shops had replaced Indian toys
with Chinese toys?
A. 40 to 50%
BA. 50 to 60%
C. 70 to 80%
D. 80 to 90%
Q15. Globalisation, by connecting countries, shall result in ……….?
A. lesser competition among producers.
B. greater competition among producers.
C. no change in competition among producers.
D. None of the above
Q16. . What has been one major factor that has stimulated the
globalisation process?
A. Availability of cheap labour in developing countries
B. Availability of unexploited resources in developing countries

89
 C. Some countries are good in the landscape for natural resources
D. Rapid improvement in technology
Q17. Goods are placed in ……….. that can be loaded intact onto ships,
railways, planes and trucks?
A. Vessels
B. Containers
C. Receptacles
D. Tanks
Q18. What is used to contact one another around the world, to access
information instantly, and to communicate from remote areas?
A. Mail and telephone
B. Information technology
C. Telecommunication.
D. B & C
Q19. Suppose the Indian government puts a tax on the import of toys
from China, what would happen?
A. Toys will get cheaper, more purchase by a consumer
B. No effect
C. Toys will get expensive, less purchase by a consumer
D. Toys will get expensive, more purchase by a consumer
Q20. Governments use …………… to increase or decrease (regulate)
foreign trade and to decide what kinds of goods and how much of
each, should come into the country?
A. Tax levies
B. Increased taxes
C. Relaxation of taxes
D. trade barrier

90
 CHECK YOUR ANSWERS
11 12 13 14 15 16 17 18 19 20
C A B C B D B D C D
21. Assertion and reasoning based questions:
Directions:- In the following questions, the Assertions (A) and
Reason(s) (R) have been put forward. Read both statements carefully
and choose the correct answer from the below:
(a)Both A and R are true, R is the correct explanation of A.
(b) Both A and R are true, But R is not the correct explanation of A.
(c) A is true , R is false.
(d) A is false , R is true
.) Assertion (A) :- Ford Motors is an MNC.
Reason (R):- It is one of the world’s largest automobile manufacturers
with production spread over 26 countries.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):- MNCs can exert a strong influence on product at distant
locations
Reason (R):- MNCs set up partnership with local companies, use local
companies for supplies, compete with local companies or buy them.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A) :- Online shopping has become popular among people.
Reason (R) it destroyed domestic market.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):- Foreign trade and foreign investment are two main
factors of Globalisation.

91
Reason (R) :-They are not playing any role in international market.
Answer- (c) A is true , R is false.
.) Assertion (A): An MNC is a company that owns or controls
production in more than one nation.
Reason (R): They set up their offices and factories for production in
regions where they can get cheap labour and other resources.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):-Globalisation is related with only two countries.
Reason (R):- MNC s play major role in globalization.
Answer- (d) A is false , R is true
Assertion (A):- People are attracted towards Chinese products.
Reason (R) They are cheaper and new designed.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):- Globalisation leads to increased competition in
international and domestic market.
Reason (R):-Globalisation also makes the consumer better off as they
have a wider variety of goods to choose at lower prices.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):- Foreign trade and foreign investment are two main
factors of Globalisation.
Reason (R) :-They are not playing any role in international market.
Answer- (c) A is true , R is false.
Assertion (A) :- Investment made by MNCs is called foreign
investment.\
Reason (R):- They need land buildings ,machines and other equipments

92
from that nation.
Answer- (a) Both A and R are true, R is the correct explanation of
A.
Assertion (A):- Rapid improvement in technology has been one major
factor that has stimulated the globalization process.
Reason (R):- Developing countries are likely to become at par with
developed countries in terms of technological development due to
globalization.
Answer- (a) Both A and R are true, R is the correct explanation of
A.

VERY SHORT ANSWER QUESTIONS (2 Marks

In matter of years, how have markets been transformed ?
Answer:
The markets have been transformed because now latest models of
cameras, cars,watches, mobile phones etc. are available there
What is MNC or Multi-National Corporation ?
Answer:
MNC or Multi-National Corporation is a company that owns or controls
production in : more than one nation.

In which regions MNCs set up offices and factories for production ?

Answer:

93
Close to the market.
Availability of skilled/unskilled labour at low cost
.Favourable government policies.
What is investment and foreign investment ?
Answer:
The money that is spent to buy assets such as land, building, machines
and other equipment is called investment. Investment made by MNCs is
called foreign investment
What is Ford Motors ? When did it come to India and what did it do ?
Answer:
 Ford Motors, an American company, is one of the world’s largest
automobile manufacturers with production spread over 26
countries of the world.
 Ford Motors came to India in 1995 and spent ?1700 crore to set up
a large plant near Chennai. This was done in collaboration with
Mahindra and Mahindra.

What was effect of importing Chinese toys to India ?

Answer:
Chinese toys became popular in the Indian markets.Within a year, 70 to
80 per cent shops have replaced Indian toys with Chinese toys.

94
What is the result of greater foreign investment and greater foreign trade
?
Answer:
Greater foreign investment and greater foreign trade leads to greater
integration of production and markets across countries.

What is globalisation ?
Answer:
Globalisation is process of rapid integration or interconnection between
countries. The countries are connected by movements of goods, services,
investments and technology.

How information and communication technology is useful in foreign

trade ?
Answer:
Telecommunication facilities – telegraph, telephone including mobile
phones, fax etc. are used to contact one another around the world, to
access information instantly, and to communicate from remote areas.

What is a trade barrier ?

Answer:
Restrictions on foreign trade are called trade barrier. For example tax on
imports is a trade barrier.

. Why had the Indian government after independence put barriers to

foreign trade and foreign
investment ?
Answer:

95
The Indian government put barriers to protect the producers within the
country from foreign competition. Industries were just coming up and
the competition from imports would not allow the Indian industries to
come up.

Which Indian companies have emerged as multi-national companies as a

result of globalisation? Name any two.
Answer:
Tata Motors (Automobiles)Infosys (IT)
Ranbaxy (Medicines)Asian Paints (Paints).

How many workers are employed in small-scale industries in India ?

Answer:
The small-scale industries in India employ the largest number of workers
(20 million) in the country, next only to agriculture.

How have workers suffered under the flexible labour laws ? Mention any
two points.
Answer:
 Workers are now employed on a temporary basis so that the
employers do not have to pay workers for the whole
year. ,
 Wages are low and workers are forced to work overtime to make
both ends meet.
How can the globalisation be made more fair ? Write two steps and what
will be its effect ?
Answer:
(1)The government must protect the interest of all the people in the

96
country.
The government can ensure that labour laws are properly implemented
and the workers get their rights.
(2) Fair globalisation would create opportunities for all, and also ensure
that the benefits of globalisation are shared better.

Why had the Indian government put barriers to foreign trade and foreign
investment after independence? Analyze the reasons.
Answer: The Indian government put barriers on foreign trade and
foreign investment after independence because:
 It was considered necessary to protect the producers within the
country from foreign competition.
 (b) In 1950s and 1960s, the industries were initial stage and
competition from imports at that stage would not have allowed
these industries to develop.
Therefore, India allowed the imports of only essential items like
machinery, fertilizers, petroleum etc.
What changes have taken place in our markets during the last few years
?
Answer:
In the last few years, our markets have been transformed as mentioned
below :
 There is a wide choice of goods and services in the markets.
 The latest models of digital cameras, mobile phones and televisions
made by the leading manufacturers of the world are available in the
markets. Not only this these products are affordable and within
reach of the people.

97
 SHORT ANSWER QUESTIONS (3 Marks)
1. Explain Liberalisation and foreign trade and foreign investment
policy :
 Removing barriers or restrictions set by the government is
liberalisation. Under liberalisation goods can be imported and
exported easily.Foreign companies are allowed to set up factories
and offices in other countries.
 Thus liberalisation has enabled MNCs to increase their investments
in other countries as India.As a result of greater foreign investment
and greater foreign trade, there is greater integration of production
and markets across countries.
 Globalisation is this process of rapid integration of interconnection
between countries.
 “Globalisation and competition among producers has been of
advantage to the consumers.” Give arguments in support of this
statement.
Today there is more choice for the consumers in the markets. For
example in the field of toys, the markets are flooded with Chinese
toys which are cheaper and of better quality than Indian toys.
 People now have a choice between Indian toys and Chinese toys.
 The consumers now have products of better quality.The prices of
various products have come down due to competition among the
producers/manufacturers.Globalisation has led to improvement in
the standard of living of people.
2. What is a trade barrier ?
 “Tax on imports is one type of trade barrier. The government
could also place a limit on the number of goods that can he
imported. Trade barrier means restrictions to increase or decrease

98
 foreign trade and to decide what kinds of goods and how much of
each should come into the country.
 Tax on imports is a trade barrier because this will lead to increase
in the price of the product. In such a situation foreign products
will become costlier than Indian goods and the Indian producer
will be in a position to sell their products and earn profits.
 In case of Chinese toys, quotas can be used as trade barrier
because the government can put restrictions on the number and
type of toys that can be imported into the country. In such case,
there will be less competition between Indian toys and Chinese
toys. The Indian toy makers may also not suffer losses. Quotas
should be used as trade barriers in the interest of the Indian toy
makers.
4.Barriers on foreign trade and investment were removed to a large
extent in India since 1991.” Justify the statement.
Or
Why had the Indian government put barriers to foreign trade and
foreign investments after
independence ?
The Indian government had put barriers to foreign trade and foreign
investment. Because this was considered necessary to protect the
producers within the country from foreign competition.
The competition from well established foreign competitors would
have crippled the new-bom industries of India.
All the developed countries, during the early stages of development
have given protection to domestic producers through trade barrier.
LONG ANSWER QUESTIONS (5Marks)
1.Write a short note on World Trade Organisation.

99
 World Trade Organisation was set up in 1995 at the initiative of the
developed countries. Its aim is to liberalise international trade. Its
headquarters is at Geneva. WTO establishes rules regarding
international trade among countries of the world in an open,uniform
and non-discriminatory manner. In 2006,149 countries of the world
were its members.
With the liberalisation of foreign trade and investment, it is necessary to
have an international organisation to supervise the trade between
countries.
 It sees that all the countries in the world liberalise their
policies.
 It allows free trade for all i.e., in developing and developed
countries.
 It implements the rules for trade in all the countries.
 WTO looks after to make globalisation more fair to create
opportunities for all and also ensure that the benefits of
globalisation are shared better.

2.The impact of globalisation has not been uniform.” Discuss with the
help of examples.
Or
Discuss the impact of globalisation on India. OR
Describe the effects of globalisation on small producers and workers.
Small producers such as producing batteries, capacitors, toys have been
hit hard due to competition with the MNCs. They could not compete on
the issue of price and quality.
As a result of it, their production decreased and many units were closed.

100
Many workers became jobless. Many employers prefer to employ
workers on temporary basis which means workers’ jobs are no longer
secure.
Women are denied their fair share of benefits. Workers have to put in
very long working hours without any overtime.

3. What steps have been taken by the government to attract foreign

investment
The Central and the State governments are taking special steps to
attract foreign companies to invest in India, Special Economic Zones are
being set up.
 Special Economic Zones are to have world class facilities in the field
of electricity, water, roads, transport, storage recreational and
educational facilities.
 Companies which set up production units in the SEZs, do not have to
pay taxes for an initial period of five years.
 Government has allowed flexibility in the labour laws. In recent years,
the government has allowed companies to ignore many of rules and
regulations.
 Companies can hire workers for short periods when there is intense
pressure of work. This is done to reduce the cost of labour for the
company.
4.Describe the steps that may be taken make globalisation more ‘fair’.

The following steps may be taken to make globalisation more fair :

 Labour laws should be implemented properly to avoid
exploitation of the workers.
 The government should protect the interest of the small

101
 producers by using trade and investment barriers till they are in
a position to compete with large producers or MNCs.
 The government should negotiate at the WTO for “fairer
rules”.
 The government should align with other developing countries
to fight against the domination of developed countries.

5.How has information and communication technology stimulated

globalisation ? Explain with example.

The factors that have enabled globalisation are (a)Technology

(b)Information technology :
 In the past fifty years, several improvements in technology have
taken place.
 For example, in transportation technology, containers are used for
the transportation of goods which are placed in containers that can
be loaded intact on to ships, railways, planes and trucks. Containers
have led to huge reduction in port handling costs and increased the
speed with which exports can reach markets.
 Similarly, the cost of air transport has fallen. This has enabled
much greater volumes of goods being transported by airlines.

Information technology :
 Telecommunication facilities – telegraph, moblie phones, fax – are
used to contact one another around the world and to communicate
from remote areas.This has been facilitated by satellite
communication devices.
 Internet enables to send instant electronic mail and talk across the

102
 world at negligible costs.Now a news magazine published for
London readers can be designed and printed in Delhi.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.,
e-banking.
6.“Globalisation and competition among producers has been of
advantage to the consumers.” Give arguments in support of this
statement.
 Today there is more choice for the consumers in the markets.
For example in the field of toys, the markets are flooded with
Chinese toys which are cheaper and of better quality than
Indian toys. People now have a choice between Indian toys
and Chinese toys.
 The consumers now have products of better quality.The prices
of various products have come down due to competition
among the producers/manufacturers. Globalisation has led to
improvement in the standard of living of people.

103
7. What changes have taken place in our markets during the last few
years ?

In the last few years, our markets have been transformed as

mentioned below :
 There is a wide choice of goods and services in the markets.
 The latest models of digital cameras, mobile phones and televisions
made by the leading manufacturers of the world are available in the
markets. Not only this these products are affordable and within
reach of the people.
Thus a few years back, there were only few brands of different goods in
the markets. A consumer did not have real choice and had no option to
purchase a particular brand. But now he has a number of options
between Indian as well as foreign brands.

3.
SOURCE BASED QUESTIONS
Ford Motors, an American company, is one of the world’s
largest automobile manufacturers with production spread

104
 over 26 countries of the world. Ford Motors came to India in
1995 and spent Rs.1700 crore to set up a large plant near
Chennai. This was done in collaboration with Mahindra and
Mahindra, a major Indian manufacturer of jeeps and trucks.
By the year 2004, Ford Motors was selling 27,000 cars in the
Indian markets, while 24,000 cars were exported from India to
South Africa, Mexico and Brazil. The company wants to
develop Ford India as a component supplying base for its
other plants across the globe.
Question 1: Would you say Ford Motors is a MNC? Why?
Answer: Ford Motors has production facilities spread over 26 countries
of the world. Hence, it can be termed an MNC.
Question 2: What is foreign investment? How much did Ford Motors
invest in India?
Answer: The investment which comes from abroad is called foreign
investment. Ford Motors had invested Rs. 1700 crore.
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: The cost of labour is cheaper in India; compared to the
developed countries. Thismeans that an MNC can save lot of money on
wages and salaries by setting up production plants in India. This helps in
lowering the cost of production. India itself is a large market with
sizeable population of middle class and upper class and hence provides a
big market for many products.
Question 4: Why do you think the company wants to develop India as a
base for manufacturing car components for its global operations?

105
Discuss the following factors:
(a) Cost of labour and other resources in India.

106
 KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

CLASS: X SESSION: 2022-23

Time: 3 Hrs. SOCIAL SCIENCE Maximum Marks: 80

SAMPLE QUESTION PAPER – 1 EXAMINATION BLUE PRINT

Sl. 1-20 21-24 25-29 30 – 33 34-36 37 TOTAL
NO. SUBJECT TOPICS MCQ VSA SA LA (5) CB(4) MAP MARKS
(1) (2) (3) HIS(2) 37(80)
GEO
(3)
1.THE RISE OF NATIONALISM IN EUROPE 1(OR 5
1. INDIA AND THE
CONTEMPORARY 2.NATIONALISM IN INDIA 1 2 5
WORLD-II +MAP WORK

3. MAKING OF THE GLOBAL WORLD 1 1

4. THE AGE OF INDUSTRIALISATION 1(OR) 1 6
5. PRINT CULTURE 3 3
2. CONTEMPORARY 1.RESOURCES AND DEVELPOMENT 1 1 3
INDIA-II 2. FOREST AND WILD LIFE 1 - 1
3. WATER RESOURCES +MAP WORK - - 1 1 5
4. AGRICULTURE +MAP WORK 1 - 1
5. MINERAL AND ENERGY RESOURCES - - 1(OR) 1[OR] 4
6. MANUFACTURING INDUSTRIES - - 1 (OR) 5
7. LIFE LINES OF OUR ECONOMY - - 1 1
3. DEMOCRATIC 1.POWER SHARING 2 1 6
POLITICS-II
2. FEDERALISM 1 1
3. GENDER, RELIGION CASTE 1 1 3
4. POLITICAL PARTIES 1 1 (OR) 6
5. OUTCOMES OF DEMOCRACY 1 1 4
4 UNDERSTANDING 1. DEVELOPMENT 2 - 2
ECONOMIC
DEVELOPMENT
2. SECTORS OF INDIAN ECONOMY 2 1 1 - 7
3. MONEY AND CREDIT 1 1(OR) - 6
4. GLOBALIZATION AND INDIAN 2 1 - 5
ECONOMY
TOTAL QUESTIONS (37) 20(20) 4(8) 5(15) 4(20) 3(12) 1(5) 37(80)

MCQ- 20*1=20 MARKS

VSA- 4*2= 8MARKS
SA- 4*3=12 MARKS
L.A.-4*5=20 MARKS
C.B- 3*4=12 MARKS
MAP-2 (2+3)=5 MARKS
TOTAL- 27 QUE. 80 MARKS

107
 SAMPLE QUESTION PAPER
SOCIAL SCIENCE (CODE 087)
CLASS X – SESSION 2022-23
Time Allowed: 3 Hours
Maximum Marks: 80

सामान्य निर्दे श :-

i . प्रश्न पत्र में छह खंड होते हैं ए -, बी, सी, डी, ई और एफ।प्रश्न पत्र में 37

प्रश्न हैं । सभी प्रश्न अनिवायय हैं ।

i i . खंड ए – प्रश्न 1 से 20 तक प्रत्येक 1 अंक के बहुवक

ै ल्पपक प्रश्न हैं ।

i i i . खंड बी – प्रश्न संख्या। 21 से 24 अनत लघु उत्तरीय प्रश्न हैं , प्रत्येक के 2

अंक हैं । प्रत्येक प्रश्न का उत्तर 40 शब्र्दों से अनिक िहीं होिा चाहहए।

i v. खंड सी में प्रश्न 25 से प्रश्न 29 तक लघु उत्तरीय प्रश्न हैं , ल्ििमें से प्रत्येक

में 3 अंक हैं । प्रत्येक प्रश्न का उत्तर 60 शब्र्दों से अनिक िहीं होिा चाहहए ।

v. खंड डी – प्रश्न संख्या। 30 से 33 र्दीघय उत्तरीय प्रश्न हैं , ल्ििमें से प्रत्येक के

नलए 5 अंक हैं । प्रत्येक प्रश्न का उत्तर 120 शब्र्दों से अनिक िहीं होिा चाहहए।

vi . खंड प्रश्न संख्या - ई-34 से 36 तक केस आिाररत प्रश्न हैं ल्ििमें तीि उप

प्रश्न हैं और प्रत्येक के 4 अंक हैं ।

vi i . खंड एफ प्रश्न संख्या। - 37 िक्शा आिाररत है , ल्िसमें 5 अंक हैं

vi i i . प्रश्न पत्र में कोई समग्र ववकपप िहीं है । हालांहक, कुछ प्रश्नों में आंतररक

ववकपप प्रर्दाि हकया गया है । ऐसे प्रश्नों में से केवल एक ववकपप का प्रयास

करिा है ।

108
i x. इसके अलावा, िहां आवश्यक हो, प्रत्येक अिुभाग और प्रश्न के साथ अलग-

अलग निर्दे श हर्दए गए हैं ।

General Instructions :
i. Question paper comprises Six Sections – A, B, C, D, E and F. There are 37
questions in the
question paper. All questions are compulsory.
ii. Section A – From question 1 to 20 are MCQs of 1 mark each.
iii. Section B – Question no. 21 to 24 are Very Short Answer Type Questions,
carrying 2 marks
each. Answer to each question should not exceed 40 words.
iv. Section C contains Q.25to Q.29 are Short Answer Type Questions, carrying
3 marks each.
Answer to each question should not exceed 60 words
v. Section D – Question no. 30 to 33 are long answer type questions, carrying 5
marks each.
Answer to each question should not exceed 120 words.
vi. Section-E - Questions no from 34 to 36 are case based questions with three
sub questions
and are of 4 marks each
vii. Section F – Question no. 37 is map based, carrying 5 marks with two parts,
37a from History (2 marks) and 37b from Geography (3 marks).
viii. There is no overall choice in the question paper. However, an internal
choice has been
provided in few questions. Only one of the choices in such questions have to be
attempted.
ix. In addition to this, separate instructions are given with each section and
question, wherever
necessary

109
 SECTION AMCQs 1x20=20
1. ब्रेटि वुड्स के तहत स्थावपत ववश्व संस्थािों की पहचाि करें ? 1

(एआईएमएफ )

(बीववश्व बैंक )

(सीआईएमएफ और ववश्व बैंक )

(डी )77 . का समूह

Identify the world institutions which were established under the

BRETTON WOODS ?
(a) The IMF
(b) The World Bank
(c) The IMF and The World Bank
(d) Group of 77
2. गुलामनगरी में िानत व्यवस्था के अन्याय के बारे में हकसिे नलखा? 1

(एरािा राममोहि राय )

(बीेयोनतबा फुले )

(सीबालगंगािर नतलकी )

(डीबंहकम चंट् चद्रटोपाियाय )

Who wrote about the injustices of the caste system i n

‘Gul amgi ri ’?

(a) Raja Rammohan Roy

(b) Jyotiba Phule

(c) Balgangadhar Tilak

110
 (d) Bankim Chandra Chattopadhyay
3. नचत्र का अिययि करें और िीचे हर्दए गए प्रश्न का उत्तर र्दें : 1

St udy t he Pi ct ure and answer t he Quest i on t hat f ol l ows

निम्िनलल्खत में से कनि सा पहलू 'घोर काली' की इस छवव को

सबसे अच्छा र्दशायता है ?

(एपारं पररक पाररवाररक भूनमकाएं )

(बीपल्भम का सांस्कस नतक प्रभाव )

(सीउनचत पाररवाररक संबंिों का वविाश )

(डीइिमें से कोई िहीं )

Which of the following aspect best signifies this image of ‘Ghor

kali’ ?
(a) Traditional Family roles
(b) Cultural impact of the west
(c) Destruction of proper family relations
(d) None of these

111
 नोट िन निखिलन िन :Q.1 के स्थान पर दृष्टिबाििन उ मीदवारों

के िखए है :

िोटे स्टें ट सुिार के िखए कौन सा िािमिक सुिारक िि मेदार था?

(एमाूटि न खर्थर )

(बीियिि िखॉट )

(सीमैिगसम सोकम )

(डीमाूटि न खर्थर ूकास )

NOTE: Following question is for Visually impaired candidates in

lieu of Q.1
Which religious reformer was responsible for the Protestant
Reformation?
(a) Martin Luther
(b) George Elliot
(c) Maxim Gorky
(d) Martin Luther King
4. निम्िनलल्खत में से कनिसी सबसे पुरािी िापािी पुस्तक है -? 1

(एसुत्त वपटक )

(बीडायमंड सूत्र )

(सी:महावंश )

(डीर्दीपवंश )

Which one of the following is the oldest Japanese book?

(a) Sutta Pitaka

112
 (b) Diamond Sutra
(c) Mahavamsa
(d) Dipavamsa
5. निम्िनलल्खत को नमलाएं: 1

सूची 1 सूची I I

1 िलोढ़ नमद्रटी A रािस्थाि और गुिरात

2 काली नमद्रटी B ओहडशा और छत्तीसगढ़

3 लाल नमद्रटी C महाराष्ट्र और मिय प्रर्दे श

4 लैटेराइट नमद्रटी D किायटक और केरल

Mat ch t he f ol l owi ng:

LIST 1 LIST II

1 Alluvial Soils A Rajasthan and Gujarat

2 Black Soils B Odisha and Chattisgarh

3 Red Soils C Maharashtra and Madhya

Pradesh

4 Laterite Soils D Karnataka and Kerala

ववकपप / Opt i ons:

(a) 1-B,2-C,3-D,4-A

(b) 1-A,2-C,3-B,4-D

(c) 1-D,2-C,3-B,4-A

(d) 1-B,2-D,3-A,4-C

113
6. _______ में स्थायी वि के अंतगयत सबसे बडा क्षेत्र है िो इसके 1

कुल वि क्षेत्र का 75% है ।

(एरािस्थाि )

(बीतनमलिाडु )

(सीमिय प्रर्दे श )

(डीओहडशा )

________has the largest area under permanent forest constituting

75 % of its total forest area.
(a) Rajasthan
(b) Tamil Nadu
(c) Madhya Pradesh
(d) Odisha
7. निम्िनलल्खत में से कनि सी फसल आयरि, कैल्पशयम और अन्य 1

सूक्ष्म पोषक तत्वों और रनगे से भरपूर है ।

(एबिरा )

(बीरािमा )

(सीेवार )

(डीरागी )

Which one of the following crops is rich in iron, calcium and other
micronutrients and roughage.
(a) Baj ra

(b) Rajma

114
 (c) Jowar
(d) Ragi
8. बेल्पियम में सामान्यतः कनि सी र्दो भाषाएँ बोली िाती हैं ? 1

(एीेंच और अंग्रेिी )

(बीडच और नसंहली )

(सीीेंच और नसंहली )

(डी डच )और ीेंच

Which two languages are generally spoken in Belgium?

(a) French and English
(b) Dutch and Sinhala
(c) French and Sinhala
(d) Dutch and French
9 'चेक एंड बैलेंस' की एक प्रणाली र्दस
ू रा िाम है ल्िसके नलए 1

निम्िनलल्खत में से एक शविसाााकरण व्यवस्था ह-ैै:

(एववनभन्ि सामाल्िक समूहों के बीच सत्ता का बंटवारा। )

(बीसरकार के ववनभन्ि स्तरों के बीच सााा शवि या शवि का )

लंबवत ववभािि।

(सीसरकार के ववनभन्ि अंगों के बीच सााा सत्ता या शवि का )

क्षैनति ववभािि।

(डीराििीनतक र्दलों ), र्दबाव समूहों और सरकारों के रूप में सत्ता

का बंटवारा।

A system of ‘checks and balances’ is another name for which one

115
 of the following power-sharing arrangements:
(a) Power sharing among different social groups.
(b) Vertical division of power or power shared among different
levels of government.
(c) Horizontal division of power or power shared among different
organs of the government.
(d) Power sharing in the form of political parties, pressure groups
and governments.
10. संवविाि के अिुसार भारत के __________ में महहलाओं के नलए 1

सीटें आरल्क्षत हैं ।

(एलोकसभा )

(बीपंचायत राि निकाय )

(एवविाि सभाएं )

(औरअलमाररयाँ )

As per Constitution seats are reserved for women in __________ of

India.
(a) Lok sabha
(b) Panchayat raj bodies
(c) Legislative Assemblies
(d) Cabinets
11 निम्िनलल्खत में से कनि सा संघ सूची का ववषय है 1

(एरक्षा )

(बीनशक्षा )

(सीव्यापार )

116
 (डीकस वष )

Which of the following is a subject of Union List

(a) Defence
(b) Education
(c) Trade
(d) Agriculture
12. राििीनतक र्दलों को ……… द्वारा नचन्ह आवंहटत हकए िाते हैं ? 1

(एभारत सरकार )

(बीभा )रत का संवविाि

(सीपाटत के िेताओं )

(डीचुिाव आयोग )

Political parties are allotted symbols by………?

(a) The Government of India
(b) The Constitution of India
(c) The party leaders
(d) The Election Commission
13. लोकतंत्रों के संर्दभय में, निम्िनलल्खत में से कनि सा ववचार सही है 1

लोकतंत्रों िे सफलतापूवक
य समास कर हर्दया है -?

(एलोगों के बीच संघषय )

(बीलोगों के बीच आनथयक असमािता )

(सीराििीनतक असमािता का ववचार )

(डीहानशए के वगह के साथ कैसे व्यवहार हकया िाए ), इस बारे में

117
 मतभेर्द

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) the idea of political inequality
(d) differences of opinion about how marginalized sections are to
be treated
14. र्दे श की कुल आय को उसकी कुल ििसंख्या से भाग र्दे िे पर 1

__________ कहा िाता है

(एसकल आय )

(बीशु आय )

(सीप्रनत व्यवि आय )

(डीकुल आय )

Total income of the country divided by its total population is

known as __________
(a) Gross income
(b) Net income
(c) Per capita income
(d) Total income
15. मािव ववकास के मामले में निम्िनलल्खत में से हकस पडोसी र्दे श 1

का प्रर्दशयि भारत से बेहतर है ?

(एबांालार्दे श )

118
 (बीाीलंका )

(सीिेपाल )

(डीपाहकस्ताि )

Which of the following neighbouring countries has better

performance in terms of human development than India?
(a) Bangladesh
(b) Sri Lanka
(c) Nepal
(d) Pakistan
16. __________ क्षेत्र में ऐसी गनतववनियाँ शानमल हैं ल्ििमें प्राकस नतक 1

उत्पार्दों को ववनिमायण के तरीकों के माियम से अन्य रूपों में बर्दल

हर्दया िाता है ल्िन्हें हम औद्योनगक गनतववनि से िोडते हैं ।

(एमाियनमक क्षेत्र )

(बीतसतीयक क्षेत्र )

(सीप्राथनमक क्षेत्र )

(डीउपरोि में से कोई िहीं )

The ___________ sector involves activities in which natural

products are changed into other forms through ways of
manufacturing that we associate with industrial activity.
(a) secondary sector
(b) tertiary sector
(c) primary sector
(d) none of the above

119
17. एक ववशेष वषय के र्दनराि प्रत्येक क्षेत्र में उत्पाहर्दत अंनतम वस्तुओं 1

और सेवाओं का मूपय _________ प्रर्दाि करता है ।

(एिीएिपी )

(बीिीडीपी )

(सीमुट्ास्फीनत र्दर )

(डीऔद्योनगक उत्पार्दि )

The value of final goods and services produced in each sector

during a particular year provides the ____________.
(a) GNP
(b) GDP
(c) Inflation Rate
(d) Industrial output
18. निम्िनलल्खत में से कनि मुट्ा का आिुनिक रूप है ? 1

(एसोिा )

(बीपेपर िोद्रस )

(सीकापर )

(डीचांर्दी )

Which one of the following is modern form of currency ?

(a) Gold
(b) Paper notes
(c) Copper
(d) Si l ver

120
19. सरकार द्वारा नििायररत बािाओं या प्रनतबंिों को हटािे के रूप में 1

िािा िाता है :

(एनििीकरण )

(बीवैश्वीकरण )

(सीउर्दारीकरण )

(डीसमािीकरण )

Removing barriers or restrictions set by the government is known

as :
(a) privatisation
(b) globalisation
(c) liberalisation
(d) socialization
20. निम्िनलल्खत में से हकसे भारत में वैश्वीकरण के कारण सबसे कम 1

लाभ हुआ है ?

(एकस वष क्षेत्र )

(बीऔद्योनगक क्षेत्र )

(सीसेवा क्षेत्र )

(डीमाियनमक क्षेत्र )

Which one of the following has benefited least because of

globalisation in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector

121
 (d) Secondary Sector
SECTION B
VERY SHORT ANSWER QUESTIONS (2X4=8)
21. प्रथम ववश्व यु के र्दनराि भारत में औद्योनगक उत्पार्दि क्यों बढ़ा? 2
या
िाबसय कनि थे? उिके कायह की व्याख्या करें ।
Why did industrial production in India increase during the First
World War? Or
Who were the Jobbers? Explain their functions.
22 'संसािि नियोिि' के ववनभन्ि चरणों का वणयि कील्िए । 2
Describe the different steps of ‘resource planning’.

23. िमयनिरपेक्षता कुछ राििीनतक र्दलों या व्यवियों की ववचारिारा " 2

िहीं है , बल्पक यह हमारे र्दे श की िींव में से एक है ।उपयुि "

उर्दाहरणों के साथ इस कथिका परीक्षण करें ।
“ Secularism is not an ideology of some political parties or persons, but
it is one of the foundations of our country." Examine the statement with
suitable examples.
24. ग्रामीण क्षेत्रों में रोिगार के अनिक अवसर कैसे ससल्ित हकए िा 2

सकते हैं ? कोई र्दो तरीके नलल्खए।

How can more employment opportunities be created in the rural
areas? Write any two ways.
SECTION C
SHORT ANSWER BASED QUESTIONS (3X5=15)
25. ‘िमक सत्याग्रह ' को उपनिवेशवार्द के ववरु प्रनतरोि का एक 3

प्रभावशाली प्रतीक क्यों मािा गया? समाािा।

Why was the ‘Salt March’ considered an effective symbol of

resistance against colonialism ? Explain.

122
26. कोयले के निमायण की व्याख्या कील्िए तथा भारत में पाए िािे 3

वाले कोयले के ववनभन्ि रूपों के गुणों का वणयि कील्िए।

[या]

लनह और अलनह खनििों में उर्दाहरण सहहत भेर्द कील्िए।

Explain the formation of coal and Describe the qualities of the

different forms of Coal found in India.
(OR]
Differentiate between Ferrous and non Ferrous minerals with
examples.
27. "लोकतंत्र सामाल्िक वववविताओं को समायोल्ित करता है । " 3

उर्दाहरण के साथ कथि का समथयि करें ।

“Democracy accommodates social diversities.”

Support the statement with example.
28. अथयव्यवस्था के तीि क्षेत्र प्राथनमक(, माियनमक और तसतीयककैसे ) 3

परस्पर निभयर हैं ? समाािा ।

How are the three sectors (Primary, Secondary and Tertiary) of

economy inter-dependent? Explain
29. "प्रनद्योनगकी िे वैश्वीकरण प्रहिया को प्रेररत हकया है ।उर्दाहरण " 3

सहहत स्पष्ट कील्िए।

“Technology has stimulated the globalization process.” Explain

with example.
SECTION D
LONG ANSWER BASED QUESTIONS (5x4=20)

123
30 ीांसीसी लोगों के बीच सामूहहक पहचाि की भाविा पैर्दा करिे के 5

नलए ीांसीसी िांनतकाररयों द्वारा उठाए गए हकन्हीं पांच कर्दमों का

वणयि करें ।

[या]

'यूिािी स्वतंत्रता संग्राम' िे पूरे यूरोप में नशल्क्षत अनभिात वगय के

बीच राष्ट्रवार्दी भाविा को लामबंर्द करिे में हकस प्रकार योगर्दाि

हर्दया। उर्दाहरण सहहत समााइए,

Describe any five steps taken by the French Revolutionaries to

create a sense of collective identity among the French people.
[OR]

How did the ‘Greek war of Independence’ contribute in mobilizing

nationalist feeling among the educated elite across Europe. Explain
with examples,
31 "र्दे श की आनथयक ताकत को ववनिमायण उद्योगों के ववकास से मापा 5

िाता है । तकह के साथ कथि का समथयि करें ।"

[या]

'सतत ववकास की चुिनती के नलए औद्योनगक प्रर्दष

ू ण पर नियंत्रण

की आवश्यकता है ।' उर्दाहरण सहहत इस कथि की पुवष्ट कील्िए।

“The economic strength of the country is measured by the

development of manufacturing industries”. Support the statement
with arguments.
[OR]

124
 ‘The challenge of sustainable development requires control over

industrial pollution.’ Substantiate the statement with examples.

32 राििीनतक र्दलों के सामिे कनिसी ववनभन्ि चुिननतयाँ हैं -? 5

समाािा। [या]

राष्ट्रीय और क्षेत्रीय र्दलों के बीच उर्दाहरण सहहत अंतर कील्िए।

What are the various challenges faced by Political Parties? Explain.

[OR]
Differentiate Between National and Regional parties with
examples.
33 भारत की अथयव्यवस्था में बैंक हकस प्रकार महत्वपूणय भूनमका 5

निभाते हैं ? समाािा [या]

अिनपचाररक क्षेत्र की ऋण गनतववनियों को हतोत्साहहत हकया िािा

चाहहए। तकह के साथ कथि का समथयि करें ।

How do banks play an important role in the economy of India?

Explain [OR]
The credit activities of the informal sector should be discouraged.
Support the statement with arguments.
SECTION -E
CASE BASED QUESTIONS (4X3=12)

34 िीचे हर्दए गए स्रोत को पढ़ें और िीचे हर्दए गए प्रश्नों के उत्तर र्दें :

उत्पार्दों की एक ासख
ं ला का उत्पार्दि केवल हाथ के ाम से ही

हकया िा सकता था। मशीिें वर्दत, मािकीकस त सामाि के साथ

125
िहटल हडिाइि और ववनशष्ट आकार का उत्पार्दि करिे के नलए

उन्मुख थीं। उर्दाहरण के नलए, उन्िीसवीं सर्दी के मिय में, वब्रटे ि

में 500 प्रकार के हथनडे और 45 प्रकार की कुपहाहडयों का उत्पार्दि

हकया गया था। इसके नलए मािव कनशल की आवश्यकता थी,

यांवत्रक तकिीक की िहीं। ववक्टोररयि वब्रटे ि में, उच्च वगय -

हाथ से उत्पाहर्दत चीिों क - अनभिात वगय और पूि

ं ीपनतैो

प्राथनमकता र्दे ते थे। हस्तनिनमयत उत्पार्द शोिि और वगय का प्रतीक

बि गए। वे बेहतर ढं ग से तैयार हकए गए थे, व्यविगत रूप से

उत्पाहर्दत हकए गए थे, और ियाि से हडिाइि हकए गए थे। मशीि

से बिे सामाि कालोनियों में नियायत के नलए थे। ाम की कमी

वाले र्दे शों में, उद्योगपनत यांवत्रक शवि का उपयोग करिे के इच्छुक

थे ताहक मािव ाम की आवश्यकता को कम हकया िा सके।

उन्िीसवीं सर्दी के अमेररका में ऐसा ही हुआ था। हालाँहक, वब्रटे ि

को मािव हाथों को काम पर रखिे में कोई समस्या िहीं थी।

34.1.______ मािकीकस त उत्पार्द थे, िो बडे पैमािे पर उत्पाहर्दत

हकए गए थे मंडी। 1

34.2. ववक्टोररयि वब्रटे ि में, अनभिात वगय और पूि

ं ीपनत वगय

हकस वगय के थे? 1

34.3. हकस प्रकार हाथ से उत्पाहर्दत उत्पार्द मशीिों से उत्पाहर्दत

126
 उत्पार्दों से नभन्ि थे? 2

Read the source given below and answer the questions that
follows:

A range of products could be produced only with hand labour.

Machines were oriented to produce uniforms, standardised goods
with intricate designs and specific shapes. In mid-nineteenth
century Britain, for instance, 500 varieties of hammers were
produced and 45 kinds of axes. These required human skill, not
mechanical technology. In Victorian Britain, the upper classes – the
aristocrats and the bourgeoisie – preferred things produced by
hand. Handmade products came to symbolise refinement and class.
They were better finished, individually produced, and carefully
designed. Machine made goods were for export to the colonies. In
countries with labour shortage, industrialists were keen on using
mechanical power so that the needed for human labour can be
minimised. This was the case in nineteenth-century America.
Britain, however, had no problem hiring human hands.

34.1.______ were Standardised products, which were produced for

a mass market. 1
34.2. In Victorian Britain, the Aristocrats and bourgeoisie belonged
to which class? 1
34.3. In what way the products produced with hand was different
from that of products produced with machines?
35. िीचे हर्दए गए स्रोत को पढ़ें और िीचे हर्दए गए प्रश्नों के उत्तर र्दें :

127
पािी की प्रचुरता और िवीकरणीयता को र्दे खते हुए, यह कपपिा

करिा मुल्श्कल है हक हम पािी की कमी से पीहडत हो सकते हैं ।

िैसे ही हम पािी की कमी की बात करते हैं , हम तुरंत इसे कम

वषाय वाले क्षेत्रों या सूखे की आशंका वाले क्षेत्रों से िोड र्दे ते हैं । हम

तुरंत रािस्थाि के रे नगस्ताि की कपपिा करते हैं और महहलाएं

पािी इकद्रठा करिे और भंडारण करिे और पािी पािे के नलए लंबी

र्दरू ी की यात्रा करिे के नलए उपयोग हकए िािे वाले कई 'मटका'

(नमद्रटी के बतयिको संतुनलत करती हैं । )

35.1. पसथ्वी की सतह का हकतिा भाग पािी से ढका है ? 1

35.2. क्या िल को िवीकरणीय संसािि बिाता है ? 1

35.3. पािी की कमी के मुख्य कारण क्या हैं ? 2

Read the source given below and answer the questions that
follows:
Given the abundance and renewability of water, it is difficult to
imagine that we may suffer from water scarcity. The moment we
speak of water shortages, we immediately associate it with regions
having low rainfall or those that are drought prone. We
instantaneously visualise the deserts of Rajasthan and women
balancing many ‘matkas’ (earthen pots) used for collecting and
storing water and travelling long distances to get water.
35.1. How much of the earth's surface is covered with water? 1
35.2. What makes the water a renewable resource? 1
35.3. What are the main causes of water scarcity? 2

128
36 िीचे हर्दए ए स्रोत को पढ़ें और िीचे हर्दए गए प्रश्नों के उत्तर र्दें :

बेल्पियम के िेताओं िे क्षेत्रीय मतभेर्दों और सांस्कस नतक वववविताओं

के अल्स्तत्व को मान्यता र्दी। के बीच 0771 और 0791, उन्होंिे

अपिे संवविाि में चार बार संशोिि हकया ताहक एक ऐसी

व्यवस्था तैयार की िा सके ल्िससे सभी एक ही र्दे श में एक साथ

रह सकें। उन्होंिे ल्िस व्यवस्था पर काम हकया वह हकसी भी

अन्य र्दे श से अलग है और बहुत ही िवीि है । यहाँ बेल्पियम

माडल के कुछ तत्व हर्दए गए हैं :

संवविाि में प्राविाि है हक केंट् सरकार में डच और ीेंच भाषी •

मंवत्रयों की संख्या बराबर होगी। कुछ ववशेष कािूिों को प्रत्येक

भाषाई समूह के अनिकांश सर्दस्यों के समथयिकी आवश्यकता होती

है ।

केंट् सरकार की कई शवियां र्दे श के र्दोिों क्षेत्रों की राेय सरकारों •

को र्दी गई हैं । राेय सरकारें केंट् सरकार के अिीि िहीं हैं ।

ब्रसेपस में एक अलग सरकार है ल्िसमें र्दोिों समुर्दायों का समाि •

प्रनतनिनित्व है । ीांसीसी भाषी लोगों िे ब्रुसेपस में समाि

प्रनतनिनित्व स्वीकार हकया क्योंहक डच भाषी समुर्दाय िे केंट्

सरकार में समाि प्रनतनिनित्व स्वीकार हकया है ।

129
केंट् और राेय सरकार के अलावा तीसरी तरह की सरकार होती •

है । यह'सामुर्दानयक सरकार' एक भाषा समुर्दाय से संबनं ित लोगों

द्वारा चुिी िाती है ड -च, ीेंच और िमयि भाषी चाहे वे कहीं भी -

रहते हों। इस सरकार के पास सांस्कस नतक, शैल्क्षक और भाषा संबंिी

मुद्दों के संबंि में शवि है ।

13.बेल्पियम के र्दो प्रमुख समुर्दाय कनि से हैं 0? 1

13.2. के बीच 0771 और 0791, बेल्पियम के संवविाि में हकतिी

बार संशोिि हकया गया ताहक एक ऐसी व्यवस्था की िा सके

ल्िससे सभी एक ही र्दे श में एक साथ रह सकें? 0

13.1. बेल्पियम िे सत्ता के बंटवारे के सवाल को कैसे निपटा? 2

Read the extract given below and answer the questions that
follow:
The Belgian leaders recognised the existence of regional
differences and cultural diversities. Between 1970 and 1993, they
amended their constitution four times so as to work out an
arrangement that would enable everyone to live together within the
same country. The arrangement they worked out is different from
any other country and is very innovative. Here are some of the
elements of the Belgian model:
 Constitution prescribes that the number of Dutch and French-
speaking ministers shall be equal in the central government.
Some special laws require the support of the majority of
members from each linguistic group.
 Many powers of the central government have been given to

130
 state governments of the two regions of the country. The
state governments are not subordinate to the Central
Government.
 Brussels has a separate government in which both the
communities have equal representation. The French-speaking
people accepted equal representation in Brussels because the
Dutch-speaking community has accepted equal
representation in the Central Government.
 Apart from the Central and the State Government, there is a
third kind of government. This ‘community government’ is
elected by people belonging to one language community –
Dutch, French and German-speaking – no matter where they
live. This government has the power regarding cultural,
educational and language-related issues.
36.1. What are the two major communities of Belgium? 1
36.2. Between 1970 and 1993, how many times Belgian
Constitution was amended in order to make an arrangement that
would enable everyone to live together within the same country? 1
36.3. How did Belgium deal with the question of power sharing? 2

SECTION – F MAP BASED QUESTIONS (2+3=5

37. भारत के हर्दए गए राििीनतक मािनचत्र पर, 5

37.(a) निम्िनलल्खत िािकारी की सहायता से और उसके पास

अंहकत रे खा का सही िाम नलल्खए, उस स्थाि की पहचाि कील्िए

िो अंहकत है

(एवह स्थाि िहां गांिीिी िे िमक कािूि का उपलंघि हकया )

131
था

(बीवह शहर िहां िनलयांवाला बाग की घटिा हुई थी )

37.(b) निम्िनलल्खत में से हकन्हीं तीि का पता लगाएँ और उन्हें

लेबल करें

i ) ाारखंड में एक कोयला क्षेत्र i i ) िागािुि

य सागर र्दाम

i i i ) गोवा में प्रमुख समुट्ी बंर्दरगाह

i v) उत्तर प्रर्दे श में परमाणु ऊिाय संयंत्र

On the given Political map of India,

37.(a) With the help of the following information and write the
correct name of the line marked near it, Identify the place marked
as
A The place where Gandhiji violated Salt Law
B The city where Jallianwala Bagh incident took place
37.(b) Locate and label the any Three of the follwing
A coal field in Jharkhand
Nagarjuna Sagar Dam
Major Sea Port in Goa
Nuclear power plant in Uttar Pradesh

132
 SAMPLE QUESTION PAPER
SOCIAL SCIENCE (CODE 087) SESSION 2022-23

133
CLASS X – ANSWER KEY

1. (c) The IMF and The World Bank

2. (c) Balgangadhar Tilak
3. (b) Cultural impact of the west
4. (b) Diamond Sutra
5. (b) 1-A,2-C,3-B,4-D
6. (c) Madhya Pradesh
7. (d) Ragi
8. (d) Dutch and French
9 (c) Horizontal division of power or power shared among different
organs of the government.
10. (b) Panchayat raj bodies
11 (a) Defence
12. (d) The Election Commission
13. (d) differences of opinion about how marginalized sections are to be
treated
14. (c) Per capita income
15. (b) Sri Lanka
16. (a) secondary sector
17. (b) GDP
18. (b) Paper notes
19. (c) liberalisation
20. (a) Agriculture Sector
21. Why did industrial production in India increase during the First World
War?
Answer:- (i) During the First World War, Manchester was busy with war
production. So their export to India declined. (ii) Because of this Indian cotton
mill suddenly got a huge opportunity to supply to the home market. (iii) As the

134
war continued, Indian mills were asked to supply jute bags, uniform for war.
(iv) To meet up these demands, new industries were established, old industries
started several shifts. During this time the production system boomed. (v)
Downfall of British industry was like a boon for home industry: Even after the
War Manchester could never recapture its old position in the Indian market.
Britain failed to compete with the progress of the USA and Japan and its
economy collapsed. As cotton cloth production declined in Britain, so local
industrialists gradually consolidated their position in the home market.
Or
Jobbers were the people who were employed by the employers to meet their
needs pertaining to working capital. Their role involved them to do following:
a. These Jobbers used to employ the workers and were responsible for the whole
recruitment process.
b. These people were the trusted people of the employers. Their major role of
providing workers to the industrialists required them to employ the people from
their own villages.
c. They also used to provide money to these workers in the time of extreme
financial crisis.
d. But, as the need of the workers grew, the domination and power of jobbers
increased as they had control over the main organ of economic and industrial
development i.e. the workers. After that, they began demanding favours for the
recruitment and their power increased at an alarming rate.
e. Jobbers also used to help the workers to settle in the cities.
22. Describe the different steps of ‘resource planning’.
1)Identification and inventory of resources across the regions of the country
.This involves surveying, mapping and the qualitative estimation and
measurement of the resources.
2) Evolving a planning structure endowed with appropriate technology, skill
and institutional set up for implementing resource development plans.

135
3) Match the resource development plans with overall national development
plans.
23. “ Secularism is not an ideology of some political parties or persons, but it is
one of the foundations of our country." Examine the statement with suitable
examples.
Answer:-Secularism is not an ideology of political parties but is the foundations
of our country because -
There is no official religion of the Indian state. Unlike the status of Buddhism in
Sri Lanka, that of Islam in Pakistan and that of Christianity in England, our
Constitution does not give a special status to any religion.
The Constitution provides to all individuals and communities freedom to
profess, practice and propagate any religion, or not to follow any.
The Constitution prohibits discrimination on grounds of religion.
(Any two relevant Points)
24. How can more employment opportunities be created in the rural areas?
Write any two ways.
More employment in rural areas can be created by taking the following steps:
1. Farmers should diversify agriculture and adopt horticulture, animal rearing,
organic farming, pisciculture besides farming.
2. Government should take necessary steps to provide loans to farmers at
cheaper rates and from formal sources of credit.
3. Creation of basic infrastructure facilities such as roads, transportation,
market, and banking will lead to the creation of employment opportunities in
rural areas.
4. Establishment and promotion of cottage and small-scale industries will also
increase employment opportunities in rural areas.
5. Making provisions for education and health services in rural belts can also
result in employment (Any two relevant points)
25. Salt March was an effective symbol of resistance against colonialism

136
because
All classes could identify with salt as it was a cheap and essential food item.
(ii) Tax on salt and the monopoly over its manufacturing was a sign of the
oppression of British Rule.
(iii) It would affect the British Economy. Gandhiji reached Dandi on 12th
March, 1930 and violated salt law by manufacturing salt from sea water.
Breaking the salt law was an apparent defiance of British authority and was a
direct challenge to British Rule in India. It had a far reaching repercussion on
the whole structure of colonialism
26. Coal is formed due to the compression of plant and animal material over
millions of years.
The four qualities of coal found in India are
(i) Peat has high moisture content and low heating capacity.
(ii) Lignite is a low grade brown coal, soft and with high moisture content.
(iii) Bituminous coal is buried deep and subject to high temperature. It has good
heating power and Is usually black in colour.
(iv) Anthracite coal is the hardest variety and has the highest heating’power.
Or
Ferrous Minerals Nonferrous Minerals

They are Magnetic. They are Nonmagnetic.

They weigh more. They weigh less.

They are good conductors of They are bad conductors of

electricity electricity.

They are less resistant to corrosion. They are more resistant to corrosion.

They are mainly composed of iron

They are composed of various
as hydroxide, sulfides, and
elements and combinations.
carbonates.

137
27. Democracy accommodates social diversities:
i Democracies develop a procedure to conduct their competition. This reduces
the possibility of these tensions becoming explosive or violent.
ii No society can fully and permanently resolve conflicts among different
groups. But we can certainly learn to respect these differences and can evolve a
mechanism to negotiate these differences.
iii Ability to handle social differences divisions and conflicts is thus a definite
plus point of democratic regimes
iv Example: Belgium - has successfully negotiated differences among its ethnic
population. This reduces the possibility of tensions.
28. All the three sectors primary secondary and tertiary are interdependent to
each other in the following ways.
Primary sector makes possible the extraction of natural resource like iron. This
iron is then taken to the secondary sector for manufacturing through the
transportation system like trucks. The extraction process is supported by the
financing and information technological institutions.
It is through the secondary sector that the natural resource iron is changed into
other forms through the process of manufacturing. Manufacturing again need
the support of the service sector in the form of engineers electricians etc. Iron is
changed into iron sheets and then into vehicles for transportation.
Once manufactured the vehicles are sold through various trading agencies.
These vehicles are used for providing services in the tertiary sector and at the
same time support the primary and the secondary sectors to carry out their
processes.
29. In the last few decades there are several improvements in technology.
In recent times technology in the areas of telecommunications, computers,
internet has been changing rapidly.
Tele-communication facilities (Telegraph, telephone, including mobile phones,

138
fax) are used to contact one another around the world.
This has been facilitated by satellite communication devices.
Internet also allows us to send instant electronic mail (e-mail) and talk (voice-
mail) across the world at negligible costs.
30 The steps which were taken by French Revolutionaries to create a sense
of collective identity among the French people were:
1) The idea of La- Patrie and Le-Citoyen emphasized the notion of a united
community enjoying equal rights under a constitution.
2) New French flag the tricolour was chosen to replace the former royal
standard.
3) The Estate General was elected by the body of an active citizen and renamed
the National Assembly.
4) New Hymns were composed, oaths taken and martyrs commemorated all in
the name of the nation.
5) A centralized administrative system was put in place and it formulated
uniform laws for all citizen within its territory.
6) Internal customs duties and dues were abolished and a uniform system of
weight and measures were adopted.
7) Regional dialects were discouraged and French became the common
language of the nation.Or
Greek War of Independence mobilized nationalist feelings:
The growth of revolutionary nationalism in Europe sparked off a struggle for
independence amongst the Greeks.
Nationalists in Greece got support from other Greeks living in exile.
Sympathies for ancient Greek culture.
Poets and artists landed Greece as the cradle of European civilization.
The English poet Lord Byron organized funds and later went to fight in the
War.
The growth of revolutionary nationalism in Europe let to struggle for

139
independence among the Greeks from ottoman Empire.
Finally, The Treaty of Constantinople of 1832 recognized Greece as an
independent nation.
31 The economic development of a country is measured by the development
of manufacturing industries by the following waysi –
Manufacturing industries help in modernizing agriculture which forms the
backbone of our economy.
They reduce the heavy dependence of people on agricultural income by
providing them jobs in secondary and tertiary sectors
Industrial development is pre-condition for eradication of unemployment and
poverty from our country.
Manufacturing goods expand trade and commerce
Export brings in much needed foreign exchange.
Manufacturing is the process of value addition.
It also brings down regional disparities by establishing industries in tribal and
backward areas.
It increases the GDP/ National Income of the country.
Any other relevant point. Any five points to be explained.OR
i. On one hand Industries lead to extensive industrial growth and expansion,
other hand these are also the cause of environmental degeneration which prompt
to the different type of air, water pollution.
ii. There is an increasing requirement to use a further sustainable model.
iii. Industries must produce eco-friendly products and dump wastes responsibly.
iv. Use of latest technology can help industries to control pollution and lead
towards sustainable mode of operation.
v. Industries use- Reuse-Recycle-Refuse approach.
vi. If necessary, dump waste in specified places, away from the land and water
sources, for example- before dumping treat well and make useful forother than
drinking purpose,stop using thermal plants in some of the locations.

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32 Various challenges faced by political parties are
(a) The parties are lacking internal democracy, which keeps many prospective
leaders deprived of their rights.
(b) There have been dynastic successions in many political parties. This often
deprives the parties of appropriate leadership.
(c) The parties something, indulge in the use of money and muscle power for
winning elections. This hampers development and is against the spirit of
democracy.
(d) There are not many ideological differences between the various parties. So,
there is a lack of meaningful choice before the voters. OR

Regional party National party

Regional party refers to a political National party implies a political

party, which has its base in a party that extends over the entire
particular region and has limited nation, in terms of area of influence.
objectives.

It can be changed and repeated in It has a permanent symbol that

other state. cannot be repeated.

Particular region only Entire country

It should be strong enough in at least It should be strong enough in at least

one or two states. four states.

To promote regional interest. To resolve national and international

issues.

33 Banks help people to save their money in safe custody. To save their
money, people deposit their money with banks.
Banks give interest on the money deposited by the people. Thus, they add to the
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income of the family.
Many families survive on the bank interest.
Banks provide loans to people for a variety of purposes.
Banks charge low interest rate. To promote regional interest.
Credit provided by banks is crucial for the country’s growth and economy.
Banks boost the industrial sector by providing cheap loans.
They are the backbone of the country’s trade.
Banks employ a large number of people and as such they solve the employment
to some extent.Or
The credit activities of the informal sector should be discouraged because:
85% of loans taken by the poor households in the urban areas are from informal
sources.
Informal lenders charge very high interest on their loans.
They try to charge more and more interest on their loans.
There are no boundaries and restrictions.
Higher cost of borrowing means a larger part of the earnings of the borrowers is
used to repay the loan.
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, therefore the credit activities of
the informal sector should be discouraged.
34.1. (b) Uniforms
34.2. (b) Upper classes
34.3. (a) Colonies
34.3. (b) Hand made

35.1. Three-fourth
35.2. Continuous renewal and recharging of ground water through the
hydrological cycle

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35.3. Low rainfall,Over use of water any other relevant points
36.1. Dutch speaking, French speaking
36.2. Four times
36.3. Apart from the Central and the State Government, there is a third kind of
government. This ‘community government’ is elected by people belonging to
one language community – Dutch, French and German-speaking – no matter
where they live. This government has the power regarding cultural, educational
and language-related issues.
37. Map question

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37.

Amritsar
B ra

Narora

Dandi
A Bokaro

Nagarjuna Sagar Dam

Marmangao

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