Nios Class 10th Economics Solved Previous Year Question Paper in English Medium

CHAPTER – 1

WHAT IS ECONOMICS

1. Economics is a science of wealth”. What does this imply?

ANS: As science of wealth economics explains the nature and causes of wealth, creation of wealth by individuals and nations etc.

2. Which aspect of welfare does economics deal as the science of welfare?

ANS: Quantitative aspect of welfare.

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3. Write whether the following statements are True or False

(i) Inflation is studied under micro economics.

(ii) Determination of price of a good is a problem under macroeconomics.

(iii) Macroeconomics deals with the issue of employment and unemployment.

(iv) Micro economic deals with individual decision making with respect to buying a good.

ANS:

(i) False,

(ii) False,

(iii) True,

(iv) True.

4. Identify the following statements as positive or normative.

(i) India has a large number of poor people.

(ii) The government should spend more on education.

(iii) Poor people are suffering due to price rise of essential commodities.

(iv) Bank has increased its interest rate.

(v) People should be encouraged to save in post offices and commercial banks.

ANS:

(i) Positive,

(ii) Normative,

(iii) Positive,

(iv) Positive,

(v) Normative

5. Economics is science of scarcity and choice. Explain.

ANS: The basic economic problem is that needs and wants are unlimited, but resources are scarce.Scarcity means that resources are limited, and because resources are scarce, people must make choices. Economics is the social science that studies how people use scarce resources to satisfy unlimited needs and wants.

6. How does wealth definition of economics differ from welfare definition of economics?

ANS:The wealth definition refers to the wealth that is used by man for the process of satisfying his wants. Economic welfare on the other hand refers to the welfare of the people and the resources, income and goods that affect their living in the economy.

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Explanation:

Wealth definition

• Wealth definition was propounded by Adam Smith and he believed that the economics is a science which related to wealth
• Wealth includes all goods in the economy which have a certain value to them which are produced and consumed
• People use wealth for satisfaction of their wants and that is the concept of total wealth.

Welfare definition

• Welfare definition was propoundedby Alfred Marshall and he studied the relationship between wealth and people living in the economy
• It refers to the capacity of earningof an individual and his capacity to spend that money for buying goods and services
• It is the study of materialisticaspect of money which is spent by an individual for his welfare in normal conditions.

7. Differentiate between micro and macroeconomics?

ANS:

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8. Distinguish between Positive and Normative economics by giving examples?

ANS:

• VERY SHORT ANSWER TYPE QUESTIONS:

1. “As a science of scarcity and choice, economics studies human behaviour and relationship between ends and means.”

What do “ends” and “scare” means imply here?

Ans. Here “ends” implies “wants” and “scare means” implies “limited resources”.

2.  Write down the two features resources.

Ans. Features of Resources:

1. Resources are limited.
2. Limited resources can be used alternatively (i.e. they have alternative uses).
3.  Why are USA, European countries, Japan etc. are called developed economies?

Ans. USA, European countries, Japan etc. are called developed economies because they have achieved higher level of income for their citizens.

4. What is the economics around the world doing to achieve higher level of growth and development?

Ans. Economics around the world have been exploiting natural resources and polluting the environment.

5.  Why are some resources like minerals, mineral oil, forests are depleting?

Ans. Because of their rising consumption by the present generation.

6.  What is our moral duty in context of available resources?

Ans. It is our moral duty to use available resources judiciously, efficiently and ensure welfare of our future generation.

7.  What does the word “Micro” mean?

Ans. The word “Micro” means very small.

8. Why is “inflation or price rise the study of macro-economics?

Ans. Because “inflation or price rise” does not affect an individual only but it also affects the whole economy.

9.  Why is the following statement a positive statement?

India’s population has closest 100 crore mark

Ans. Because the statement given in the question gives a phenomenon which is happening.

10.  Why it is not easy to give precise definition or meaning of Economics?

Ans. Because Economics is a vast subject and its scope and the area it covers are very large.

11.  What is the problem with the definition of economics as a science of wealth?

Ans. The problem with the definition of economics as a science of wealth is that it does not talk about people who have no wealth. It divides the society with “rich” and “not rich” or poor.

Q.12. Name the two aspects of welfare.

Ans. (i) Quantitative aspect (ii) Qualitative aspect.

13.  Give two examples of quantitative aspect of welfare.

Ans. Two examples of quantitative aspects of welfare are as follows:

(i) Consumption of goods and services. (ii) Increase in per capita income.

Q.14. Give two examples of qualitative aspect of welfare.

Ans. Two examples of qualitative aspect of welfare are as follows:

(i) Living in peace. (ii) Acquiring knowledge.

15.  What have the economics wound the world been doing to achieve higher level of growth and development?

Ans. In order to achieve higher level of growth and development, economics around the world have been exploiting natural resources and polluting the environment.

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16.  Why are some resources like minerals, mineral oil, forests are depleting fast?

Ans. Some resources like minerals, mineral oil and forests are depleting fast because of their rising consumption by present generation.

17.  What is moral duty with reference to available resources?

Ans. It is our moral duty to use the available resources judiciously, efficiently and ensure welfare of our future generation.

18.  Why is the study of consumer’s equilibrium a subject-matter of microeconomics?

Ans. Because consumer is a small unit.

19. What is the relationship between scarcity and choice?

Ans. Scarcity and choice go together.

20.  What is economics all about?

Ans. Economics is about the making choices in the presence of scarcity.

21.  Suppose you are the richest person on the earth. Can you get anything you wish to get anytime? Give reason in support of your answer.

Ans. Certainly not. No matter how much resources you have, they are scare in relation to your wants.

22.  Choice results due to what?

Ans. Choice results due to scarcity.

23. When does choice emerge?

Ans. Choice emerges when limited resources are to be used for the satisfaction of unlimited wants.

24.  Which type of economics (Micro or Macro) we are referring when economic problems/issues are studied considering small economic units like an individual consumer or an individual producer?

Ans. We are referring micro-economics.

25. Name any two theories which are vital components of microeconomics.

Ans. (i) Theory of demand and price.

(ii) Theory of supply and producer behaviour

26.  Are positive statements are statements of truth?

Ans. No, they may also be the statements of false.

27. At present, the population of India is 120 crores. A man says that the population of India is 80 crores. Is his statement a positive statement? Give reason in support of your answer.

Ans. Though the statement is false, but even then, it is a positive statement because it describes what it is and this statement can be verified.

28.  Name the two branches of Economics.

Ans. (i) Micro-economics and (ii) Macro-economics.

29. Which branch of economics deals with economic aggregate at the level of the whole economy?

Ans. Macro-economics.

30.  Which branch of economics studies the problem of unemployment, economic growth and development?

Ans. Macro-economics.

31. Which aspect of the things is involved by economic decision making by individuals or government or business firms?

Ans. Both positive and normative aspects of the things are involved in economic decision making by individuals or government or business firms.

32. Economics as a subject-matter of social science has been treated as a science of what?

Ans. Economics as a subject-matter of social science has been treated as a science of

(a)wealth, (b) welfare, (c) scarcity and choice, (d) growth and development, (e) sustainable development.

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• SHORT ANSWER TYPE QUESTIONS

1. Focus any two major ideas involving the meaning of economics.

Ans.Two major ideas involving the meaning of Economics: Many major ideas are involved in the meaning of economics. Two of them have been focussed below:

(i) Science of Wealth: Many scholars and authors in the last eighteenth and early nineteenth century believed that economics is the science of wealth. These scholars are called classical thinkers. They viewed that economics deals with the phenomenon of wealth which includes nature and causes of wealth creation of wealth by individuals and nation. This definition of economics has been criticised on the ground that it divides the. society into rich and poor.

(ii) Science of Welfare: Many scholars in the early 19th century viewed that economics is the science of welfare and not just wealth. But this definition has been criticised on the ground that it is concerned only with the quantitative aspect of welfare. It ignores qualitative aspect of welfare suchas living in peace, enjoying leisure etc.

2. 2. Explain economics as a science of growth and development.

Ans.Economics as a Science of Growth and Development: It is argued that for an individual to be able to satisfy his/ her wants, it is necessary that the whole economy must grow and find proper mechanism to distribute the growth among the individual citizens. So performance of the economy is very important in term of use of its resources and production and distribution of goods and services. The economy must allocate its resources among various alternative activities ensure the effective use and find ways also as to how they would grow for future development of the economy.

3. Name the various aspects of welfare with examples. Which aspect of welfare is neglected by the definition of economics as a science of welfare?

Ans. Various aspects of welfare: Welfare has two aspects namely (i) quantitative aspect and (ii) qualitative aspect.

Examples of Quantitative Aspect:

(i) Consumption of goods and services and (ii) Increase in per capita income.

Examples of Qualitative Aspect:

(i) Living in peace and (ii) Acquiring knowledge.

Qualitative aspect of welfare has been neglected by the definition of Economics as a Science of Welfare.

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• LONG ANSWER TYPE QUESTIONS:

1.  Focus the major ideas involving the meaning of economics.

Ans. Major ideas involving the meaning of Economics: Following are major ideas involving the meaning of economics:

(i) Economics as a Science of Wealth: Many scholars and authors in the late eighteenth and early nineteenth century believed that Economics is the Science of | Wealth. They viewed that economics dealswith the phenomenon of wealth which includes nature and causes of wealth, creation of wealth by individuals and nations etc.

(ii) Economics as a Science of Welfare: The wealth definition of economics was criticised on the ground that it did not talk about people who had no wealth. So many scholars in the 19th century defined economics as a “Science of Welfare”. Economics as a “Science of Wealth” was said to be concerned with the quantitative welfare only.

(iii) Economics as a Science of Scarcity and Choice: The welfare definition of economics explained only material aspect of welfare. But people want both material goods and non-material services. So, this definition has been rejected. Now economics was treated as “Science of Scarcity and Choice”. As science of scarcity and choice, economics studies human behaviour as relationship between ends and means which are scare and have alternative uses.

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(iv) Economics as a Science of Growth and Development: Now-a-days people talk about the well-being of individual and the whole nation. It is understood that for an individual to be able to satisfy his/her wants, it is necessary that the whole economy must grow and find proper one mechanism to distribute the benefits of growth among the individual citizen. So now economics is treated as the science of growth and development.

(v) Economics as a Science of Sustainable development: Economists of late 20th century have also started talking about welfare of future generation and protection of natural environment. Hence economics is also treated as a science of sustainable development.

2. Give (cite) some examples of economic decisions taken by an individual which become the subject matter of micro-economics.

Ans.Examples of Economic Decisions: Below are given the examples of economic decisions taken by the individuals becoming the part of macro-economics:

(i) Decisions with regard to quantity ofthe goods to be purchased at given price so as to get maximum satisfactionas a buyer (Demand Theory).

(ii) Decisions regarding the quantity tobe supplied at a given price so that he/she can earn some profit (Theoryof Supply).

(iii) Determination of prices in the market(Theory of Price Determination).

(iv) Decisions regarding the combinationof the various factors of production so that maximum output can be produced at minimum cost (Theory ofProduction).

3.  Write down the scope of Macroeconomics. Why is it known as the theory of Income and Employment?

Or

Write down the subject-matter of Macro-Economics.

Ans. Subject-matter of Macroeconomics: Subject matter of Macroeconomics is as under:

(1) Aggregate consumption expenditureof a country.

(ii) National income of a country.

(iii) Study of inflation or price-rise.

(iv) Problem of unemployment.

(v) Economic growth and development.

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• OBJECTIVE-TYPE QUESTIONS

1.  Write whether the following statements are true or false:

(i) The branch of economics that dealswith the problem of allocation of resources is micro-economics.

(ii) The branch of economics that deals withthe problem of allocation of resourcesat national level is macro-economics.

(iii) Limited resources cannot be usedalternatively.

(iv) We can produce unlimited amount of cloth and wheat with limited amountof resources

(v) The problem with wealth definition is that it does not talk about peoplewho has no wealth.

Ans.

(i)-True; (ii)—True; (iii)-True (iv)-False; (v)-True.

2.  State whether the following statements are true or false:

(i) Micro-economics is the study ofindividual economic units of aneconomy.

(ii) Economics is also treated as sciencesustained development.

(iii) Micro-economics is also known astheory of income and employment.

(iv) Economic decisions taken by a singleindividual become the subject-matterof micro-economics.

(v) Problem of unemployment, economicgrowth and development etc. concerned with the whole population of the nation are covered under thestudy of micro-economics.

Ans.

(i)—True; (ii)—True; (iii)-False; (iv)-True; (v)-False.

Q.3. Identify the following statements as positive or normative:

(i) India is a poor country.

(ii) The government should tax the richmore heavily than the poor.

(iii) High birth rate must be checked.

(iv) Factories should increase the wagerate of workers to provide justice forhard work.

Ans.

(i)-Positive; (ii)-Normative; (iii)–Normative; (iv)-Normative.

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Q.4. Identify the following examples as the branch of economics (Micro or Macro Economics):

(i) Consumer behaviour i.e. theory ofdemand.

 (ii) Theory of income and employment determination. 

(iii) Pricing of factory services. 

(iv) Monetary policy. 

(v) Economic decisions taken by the government. 

Ans. (i) Micro-Economics(ii) Macro-Economics (iii) Micro-Economics (iv) Macro-Economics(v) Macro-Economics

Q.5. Identify the branch of economics to be studied by Ram, Mohan, Sohan and

Raghu:

(i) Ram is interested in knowing what ishappening in the economy.

(ii) Mohan is interested in knowing whatis the level of national income inIndia.

(iii) Sohan is interested in knowing whatwill the change in the quantity produced by a farmer of the price ofwheat falls down.

(iv) Raghu is interested the knowing howis price determined in the market.

Ans. (i) Ram will study macro-economics for knowing what is happening in the economy.

(ii) Mohan will study macro-economics for knowing the level of national income in India.

(ii) Sohan will study micro-economics for knowing the change in the quantity produced by a farmer due to fall in the price of wheat.

(iv) Raghu will study micro-economics for knowing the price determination in the market.

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6.  Fill in the blanks:

(i) The branch of economics that dealswith the problem of allocation ofresources is …………..

(ii) The branch of economics that dealswith the problem of allocation of resources at national level is…………

(iii) Definition of economics as science of ……………………………. divides the society into “rich” and “not rich”.

(iv) The ……………………. definition of economicsdoes not take into consideration the qualitative aspect of welfare such asacquiring of knowledge.

(v) Japan is called a …………………… economy.

Ans.

(i) Micro-Economics

(ii) Macro-Economics

(iii) Wealth

(iv) Welfare

(v) Developed.

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7.  Fill in the blanks:

(i) Price determination of a commodityis a subject-matter of …………… economics.

(ii) The study of general price level is a ………………. economic activity.

(iii) ……………………. economic and end-user deals with things “as they should be”.

(iv) ……………….. Economic analysis deals withthings “as they are”.

Ans.

(i) Micro; (ii) Macro; (iii) Normative; (iv) Positive.

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8. Identify the following statements as positive or normative:

(i) A rise in the price of wine leads to fallin the quantity of demand.

(ii) Standard wage rate should be Rs. 350per day per person.

(iii) An increase in rate of interestdiscourages the demand for loans.

(iv) Prices are rising sharply.

Ans.

(i) Positive; (ii) Normative; (iii) Positive Economics; (iv) Positive Economics.

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9. Under which branch of economics do we study the following:

(i) Aggregates of economy.

(ii) Total output of the economy as awhole.

(iii) Price determination of a commodity.

(iv) Allocation of resources in the economy.

(v) Level of employment and unemployment in India.

Ans.

(i) Macro-Economics.

(ii) Macro-Economics

(iii) Micro-Economics

(iv) Macro-Economics

(v) Macro-Economics

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10. Which of the following is not the feature positive statement?

(i) These statements make description ofan economic activity.

(ii) These statements deal with “what is/was?

(iii) These statements cannot be verified.

(iv) These statements are related to facts.

Ans. (iii) These statements cannot be verified.

11. Tick the right answer:

(i) A rise in the price of wheat will hit thepoor hardest is a positive statement.

(ii) Government should not ignore thesocial sector is a normative statement.

(iii) The government should continue toprovide LPG at cheaper rates to the lower-income people is a positivestatement.

(iv) Positive and normative economics aremutually interdependent.

Ans.

(i) ✘

(ii)

(iii) ✘

(iv)

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• HOT QUESTIONS

1.  Why economics cannot be defined as the science of wealth?

Ans. Economics cannot be defined as the science of wealth as it divides the society into rich and poor.

2. Out of normative statements and positive statements, which statement have the characteristics of verification?

Ans. Positive statement.               

3.  On what basis the definition of economics as a science of welfare has been criticised?

Ans. Definition of economics as a science of wealth has been criticised on the basisthat it neglects qualitative aspect of welfare.

4.  Out of resources and wants, which are unlimited?

Ans. Wants are unlimited.

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• VALUE -BASED QUESTIONS

1.  What is theory of demand? Why is it the subject-matter of microeconomics?

Ans. Theory of demand deals with the concept of individual demand and market demand.

It is the subject-matter of micro-economics which deals with small units i.e. consumer and market.

2.  Why is the study of sugar industry a subject-matter of microeconomics?

Ans. The study of sugar is a subject matter of micro-economics, because sugar industry is a small unit.

3.  Why is the following statement a positive statement?

“a rise in the price of a commodity results in a fall in quantity demanded of commodity”.

Ans. Because the statement tells cause and effect relationship.

4.  Government should raise taxes on industries that because pollution is a normative statement. Why?

Ans. Because this statement suggests a course of action that may be undertaken to reach the desired ends.

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• PRACTICE QUESTIONS:

VERY SHORT ANSWER TYPE QUESTIONS

1. State economics as science of wealth.
2. State economics as science of welfare.
3. What is a normative statement?
4. Give an example of positive statement.
5. What is micro-economics?
6. What do you mean by macro-economics?
7. Give one point of difference between micro-economics and macro-economics.
8. Which branch of economics studies the economic behaviour of individual units of an economy.
9. Theory of distribution is a subject-matter of macro-economics. Do you agree with this

statement?

10. In which branch of economics theory of money is studied?
11. What is factor of pricing?
12. Which branch of economics studies economy as a whole?
13. National income, price level, and national income is the study of which branch of economics?

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• SHORT ANSWER TYPE QUESTIONS

1. Differentiate between micro-economics and macro-economics.
2. Differentiate between positive economics and normative economics.
3. Explain Economics as a:

(i) Science of Wealth

(ii) Science of Welfare.

4. Explain economics as a science of scarce and choice.
5. What do you mean resources? Write features of resources.

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•  LONG ANSWER TYPE QUESTIONS

1. In the 20th century which aim of the entire economy get momentum. How did they treat

economics and why?

2. What do you mean by welfare? Write down the two aspects of welfare with examples.
3. Explain economics as science of sustainable development.

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• OBJECTIVE TYPE QUESTIONS

1. Tick (ü) the correct answers:

(a) Economics is a narrow subject.

(b) Only one definition of economics has been given up to now.

(c) The thinkers who treated economics as a science of wealth are called as classical thinkers.

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