CBSE Class 10 Social Science Economics Development, Money and Globalisation Important Questions Set 09

Answer: More days of work and better wages, regular food and a secure source of income (also a good school for the children and no social discrimination).

Teacher's Note:
1. Different people have different developmental goals.
2. A landless labourer's goals centre on employment and wages.

Answer: Assured irrigation facilities, better prices for crops, and a regular income so that they are not at the mercy of the monsoon.

Teacher's Note:
1. Their income depends on rainfall, which is uncertain.
2. Better water supply would reduce their risk.

Answer: Getting a regular job with a fair and steady income and a secure future.

Teacher's Note:
1. Many young people in cities have the skills but cannot find suitable work.
2. Their idea of development is mainly about employment.

Answer: Per capita income (or literacy rate, or life expectancy at birth).

Teacher's Note:
1. The Human Development Index combines health, education and income measures.
2. It gives a broader picture than income alone.

Answer: GDP stands for Gross Domestic Product.

Teacher's Note:
1. It is the value of all final goods and services produced within a country in a year.
2. It is used to measure the size of the economy.

Answer: The secondary sector covers activities in which natural products are changed into other forms through manufacturing, such as making cloth from cotton.

Teacher's Note:
1. It is also called the industrial sector.
2. Examples are making sugar from sugarcane and bricks from clay.

Answer: The primary (agriculture) sector employs the largest number of people in India, nearly half of the workforce.

Teacher's Note:
1. Its share in GDP is much lower than its share in employment.
2. This shows a gap between work and income in the farm sector.

Answer: The tertiary (service) sector.

Teacher's Note:
1. Banking, transport and communication are also services.
2. They support the primary and secondary sectors.

Answer: The Reserve Bank of India (RBI).

Teacher's Note:
1. Under Indian law, no one else can issue currency notes.
2. The one-rupee note and coins are issued by the Central Government.

Answer: Banks keep a small part as cash for daily withdrawals and use a major portion of the deposits to extend loans.

Teacher's Note:
1. Banks charge a higher interest on loans than they pay on deposits.
2. The difference is their main income.

Answer: The World Trade Organisation (WTO).

Teacher's Note:
1. It makes rules for international trade and tries to see that they are followed.
2. Developed countries have a large say in its rules.

Answer: A cheque is a written order to a bank to pay a stated sum of money from the drawer's account to the person named on it.

Teacher's Note:
1. Cheque payment is an example of demand deposits being used as money.
2. It is a safe way to pay without carrying cash.

Answer: A trade barrier is a restriction put by the government on foreign trade, such as a tax (tariff) on imports or a limit on imports (quotas).

Teacher's Note:
1. Tariffs raise the prices of imported goods in the home market.
2. India removed many such barriers after 1991.

Answer: Modern currency: paper currency notes and coins. Older currency: gold, silver or copper coins.

Teacher's Note:
1. Modern money is not made of precious metals.
2. It is accepted because the government authorises it.

Answer: National development means the ability of a country to improve the welfare of its people, for example, by providing education, clean drinking water, health care, transport and infrastructure.

Teacher's Note:
1. It is measured with indicators such as per capita income, literacy and life expectancy.
2. Growth in income alone is not enough.

Answer: 1. Different people have different needs and life situations, so what is development for one may not be so for another.
2. A flyover reduces congestion for daily commuters, which is development for them.
3. However, shops and houses near the site may have to be demolished, so the occupants will not see it as development.

Teacher's Note:
1. Development goals often clash because resources are limited.
2. Governments must weigh the interests of different groups.

Answer: 1. The primary and secondary sectors produce goods, but the tertiary sector produces services that help the production of goods.
2. Examples: transport, storage, communication, banking, insurance and trade.
3. For this reason it is also known as the service sector.

Teacher's Note:
1. Its output is not a physical good.
2. Services such as teachers, doctors and lawyers are also part of it.

Answer: 1. Most farms are small, so productivity per worker is low.
2. Farmers use less modern technology, and credit and marketing facilities are inadequate.
3. There are few other jobs in rural areas, which leads to disguised unemployment in which more people work on the farm than are needed.

Teacher's Note:
1. The primary sector is the largest employer.
2. A shift of workers to industry and services would raise incomes.

Answer: 1. It supervises the functioning of formal sources of loans.
2. It monitors whether the banks keep the required cash balance.
3. It sees that banks give loans to small cultivators, small industries and small borrowers, not just to businesses that earn profit.
4. Banks submit information to the RBI on how much they lend, to whom and at what interest rates.

Teacher's Note:
1. The RBI is the central bank of the country.
2. It also issues currency notes.

Answer: Money acts as a medium of exchange, so a person who holds money can buy any good or service.
A shoe maker who wants to buy wheat does not have to find a wheat farmer who needs shoes. He sells shoes for money and buys wheat with it.

Teacher's Note:
1. Money solves the problem of double coincidence of wants that exists in barter.
2. This is the main reason why money is used.

Answer: 1. Rural households need cheap and timely loans for farming and small businesses, and banks charge a lower interest than moneylenders.
2. Banks give people a safe place for savings.
3. It would reduce the dependence on moneylenders who charge a high rate of interest.

Teacher's Note:
1. In many villages informal sources still give most loans.
2. More banks and self-help groups would improve the access to credit.

Answer: 1. The interest rate is lower in formal loans than in informal loans.
2. Formal lenders are supervised by the RBI.
3. Informal lenders often charge very high interest and may treat the borrower harshly, trapping them in debt.

Teacher's Note:
1. Formal loans give borrowers greater protection.
2. However, a large share of the poor still has no access to them.

Answer: Advantages: 1. Foreign direct investment (FDI) has accelerated economic growth. 2. Consumers have more choice and better quality at lower prices because of competition. 3. Multinational companies (MNCs) provide jobs.
Disadvantages: 1. Small producers have been hurt by competition from large firms. 2. Workers face long hours and low pay as employment is flexible. 3. Environmental damage and drain of profit to the home countries of MNCs.

Teacher's Note:
1. Globalisation has not benefited everybody in the same way.
2. Fairness requires policies to protect small producers and workers.

Answer: Globalisation is the process of rapid integration or interconnection between countries through trade, investment and the movement of people.
1. MNCs set up production units in different countries and move capital and technology between them.
2. They bring better technology, skills and knowledge to developing countries.
3. They create employment by setting up branches and by sub-contracting work to local firms.
4. They help increase foreign investment and trade between nations.

Teacher's Note:
1. MNCs link production across countries and are the main agents of globalisation.
2. Liberalisation of policies after 1991 made this easier.

Answer: 1. Protect the interests of small producers and workers through labour laws that ensure fair wages and working conditions.
2. Use trade barriers where needed, in a limited manner, to protect local industries.
3. Negotiate with the WTO for fairer trade rules and to protect the interests of developing countries.
4. Support small producers with credit, technology and marketing so that they can compete.

Teacher's Note:
1. Government policy decides who benefits from globalisation.
2. Fair rules help the poor and small businesses.

Answer: 1. Greater choice and better quality for consumers, for example in electronic goods and mobile phones.
2. New jobs in services such as call centres and IT, and in MNC-linked manufacturing.
3. Rapid growth of some Indian companies such as Tata and Infosys, which became MNCs.
4. Pressure on small producers, such as in the batteries, capacitors and toys industries, many of which closed down.

Teacher's Note:
1. The effects were uneven across groups.
2. Skilled urban workers gained more than small producers.

Answer: 1. Ownership: Assets in the private sector belong to individuals or companies; in the public sector they belong to the government.
2. Aim: The private sector works for profit; the public sector works for public welfare.
3. Services: Railways and post offices are public sector; Tata Steel and Reliance are private sector.
4. Role: The government provides basic facilities such as roads, power and water and supports activities that private firms find unprofitable, while the private sector delivers goods and services for those who can pay.

Teacher's Note:
1. Both sectors are important for the economy.
2. The public sector must also provide services at a price people can afford.