1. Explain the types of economies by filling correct information in the place of questions in the circle.
Answer.
2. Give an explanation :
(1) Economy begins at home.
Answer.
- Household finance is related to income and expenditure.
- Every household has unlimited expenditure and the income earned is limited.
- The household has to make a choice regarding how it has to spend its limited resources.
- Management of this limited income to meet the unlimited expenses is Economics.
- As we manage the finance of our family, similarly the villages/cities, states, countries and the whole world needs to have economic management. So we say Economy begins at home.
(2) India’s economy is of mixed type.
Answer.
- Mixed economy is a combination of Capitalism and Socialism.
- India is said to be a Mixed economy because there is a co-existence of both public and the private sectors.
- The private sector undertakes production for the profit motive, whereas the state tries to achieve social welfare.
- India, therefore, tries to achieve a balance between maximum social welfare for its citizens on one hand and profit on the other. Therefore, India’s economy is of Mixed type.
(3) On the basis of economies, we can divide countries into three groups.
Answer.
Answer:
The activities related to the production, distribution and consumption of goods and services in a specific region is called economy. On the basis of economies, countries are divided into three groups. Capitalist Economy, Socialist Economy and Mixed Economy.
- Capitalistic Economy is a kind of economy in which the means of production is in the hands of the private sector, e.g. Germany, Japan, the U.S.A.
- Socialist Economy is a kind of economy in which the means of production belongs to the society i.e. the government’s control, e.g. China, Russia.
- Mixed Economy is a kind of economy in which there is a co-existence of both private and public sectors, e.g. India, Sweden, the U.K.
3. Write the following questions in one line:
(1) To which economic factor is the management of individual or family finances related?
Answer.
Management of individual or family finances is related to the economic factor of ‘income and expenditure.
(2) From which Greek word is the term ‘Economics’ derived?
Answer.
The word ‘Economics’ is derived from the Greek word ‘Oikonomia’ which means family management.
(3) In capitalistic economy, to whom does the ownership and management of means of production belong?
Answer.
In a Capitalistic Economy, the ownership and management of means of production belong to the private sector.
(4) What do you mean by globalisation?
Answer.
Globalisation means aligning the country’s economy with the world economy.
