RBSE Solutions for Class 9 Social Science Chapter 16 Economy and Economic Management

RBSE Solutions for Class 9 Social Science Chapter 16 Economy and Economic Management are part of RBSE Solutions for Class 10 Social Science. Here we have given Rajasthan Board RBSE Class 9 Social Science Chapter 16 Economy and Economic Management.

Board RBSE
Textbook SIERT, Rajasthan
Class Class 9
Subject Social Science
Chapter Chapter 16
Chapter Name Economy and Economic Management
Number of Questions Solved 58
Category RBSE Solutions

Rajasthan Board RBSE Class 9 Social Science Chapter 16 Economy and Economic Management

TEXTBOOK QUESTIONS SOLVED

Multiple Choice Questions (MCQs)

Question 1.
Which of the following activity is an economic activity?
(a) A friendly match played between two classes and school
(b) Caring of children by parents
(c) Teacher teaching in a school
(d) Assembly of a school
Answer:
(c).

Question 2.
The form of Indian Economy is:
(a) Capitalist
(b) Socialist
(c) Mixed
(d) None of these
Answer:
(c).

Question 3
Which of the following types of economy gives the right of personal property of the citizens?
(a) Capitalist
(b) Socialist
(c) Both capitalist and socialist
(d) None of these
Answer:
(a).

Question 4.
Which of the following is not the merit of a mixed economy?
(a) Guardian of personal freedom
(b) Loss of class struggle
(c) More satisfaction to consumers
(d) Control over economic ups and downs
Answer:
(c).

Question 5.
How man is presented in ancient economic thought?
(a) Economic man
(b) Source of production
(c) Integral individual
(d) All of the above
Answer:
(c).

Very Short Answer Type Questions

Question 1.
What is an economy?
Answer:
Economy is the process of production, consumption, distribution and exchange of resources within a community or system.

Question 2.
Give the meaning of economics.
Answer:
Then study of allocation, distribution of resources, capital and management of the factors of production is called economics.

Question 3
Name the types of economy.
Answer:
The type of economy are:

  1. Capitalist Economy
  2. Socialist Economy
  3. Mixed Economy

Question 4.
Name the means of Production.
Answer:
Means of production are-Land, Labour, Capital, Entrepreneur.

Question 5.
What is production?
Answer:
Conversion of a raw material into finished goods which can be utilized to satisfy needs is called production. In other words creation of utility is called production.

Question 6.
Define consumption.
Answer:
It is an act of consuming goods and services directly to satisfy one’s need. The one who utilises the goods and services to satisfy his needs is called the consumer.

Question 7.
Give an example of production and producer?
Answer:
A farmer does farming, in such an act farmer is a producer and farming is production. .

Question 8.
What is distribution?
Answer:
Distribution of income earned by exchange of goods and services among different means is called distribution.

Question 9.
What is labour?
Answer:
Labour means those people who work or are available for work. Some production requires highly educated workers to perform neôessary tasks.

Question 10.
Give the meaning of Socialist Economy.
Answer:
Socialist economy is a economic system in which all means of production are owned by the whole society for social use.

Question 11.
Name the three sources of ancient Indian economic thought.
Answer:
Three resource of ancient economic thought are:

  1. Vedas
  2. Upanishad
  3. Smiriti

Question 12.
Name four Vedas of Ancient Indian economic thought as source.
Answer:
The four vedas of ancient Indian economic thought as source are:

  1. Rigveda
  2. Yajurveda
  3. Samveda
  4. Atharvaveda

Question 13.
What is Chaturvid sukh?
Answer:
Happiness of body, mind and soul depends upon four Purusharths-Dharma, Artha, Kama and Moksha which called Chatushtya Purusharth in Indian Philosophy. They are compared with a river where Artha and Kama are flow and Dharma and Moksha are banks.

Question 14.
Name four Purusharthas.
Answer:

  1. Dharma
  2. Artha
  3. Kama,
  4. Moksha.

Short Answer Type Questions

Question 1.
What is an economic activity? Analyse with example.
Answer:
Economic activities: All those activities done by men to earn their livelihood and can be measured in terms of money are called economic activities.
On the basis of material or things required for economy the main economic activities can be divided as follows:
(a) Production:
Conversion of a raw material into finished goods which can be utilized to satisfy needs is called production. In other words creation of utility is called production.

(b) Producer:
Producer is a person who produces goods and services to earn profit. For example, a farmer does farming, here a farmer is producer and farming is production.

(c) Consumption:
To satisfy needs directly by consuming goods and services is called consumption. The one who utilises the goods and services to satisfy his needs is called the consumer.

(d) Exchange:
The meaning of exchange is to give self produced goods and services to others to satisfy their needs and taking goods and services produced by others to satisfy own needs.
In other words sale and purchase of goods and services by the consumer and producers in market is called exchange. For example, a consumer purchases wheat and pays for that to satisfy his needs.

(e) Distribution:
To produce goods and services a producer needs some resources or means as land, labour, capital management and entrepreneur. Mutual Cooperation and combination of means help in production. Division of production among means is called distribution. Or in other words distribution of income earned by exchange of goods and services among different means is called distribution.

Question 2.
Distinguish between Property and Capital. ,
Answer:
Property: According to ancient thought land is a free gift of nature. In economics land does not mean only earth but natural resources, climate,vegetation, mountains, water, mines, etc. In the view of availability land is stable. Land is a unmovable factor of production because it can not be taken from one place to other. Capital: All those materials and man’s capability which are utilized in production is called capital. A part of capital is kept without use while some is utilised in future. It is one of the factors of production which is earned by man by utilising natural resources. Machine, tools, Industries and transport are example of capital.

Question 3.
Explain the concept of Economic management with example?
Answer:
In every country an individual is engaged in economic activity to earn his livelihood whether a farmer, doctor, labour, Industrialist, teacher and shopkeeper. Performance of different economic activities by different classes of people require an organisation or system. Such system is called Economic Management or in other words a system by which people earn their livelihood is called economic management.

Economic management is a frame or structure which develops a co-ordination and mutual co-operation among means and producers. It is a continuous process of production, consumption, distribution and exchange. For example for the production of sugar, producer takes sugarcane from farmer, machines and tools from industries and electricity from energy plants. Produced sugar, from one place to other, are sent by rail, truck and ships.

Question 4.
What is the difference between Capitalist and Socialist Economy?
Answer:
Capitalist Economy: It involves private ownership of economic activities, private interest and profit motive. Example, U.S.A, England, France, etc. have Capitalist Economy.
Socialist Economy: A system of economy where all means of production are owned by whole society, decisions are taken by the central authority and the collective interest is desired. Example, Former Soviet Union, Poland etc. had Socialist Economy.

Question 5.
Explain the concept of Integral individual.
Answer:
Where capitalist economy presents man as economic man who is a machine of earning more and more money while socialist economy consider him as means of earning money. Indian ancient economic thought present him as integral individual (Ekatma Manav) according to which a man is a integrated form of ‘mann, budhi’ and ‘Atma’. A man’s thought of life goes around these four elements (Body, mind, soul and concious). For balanced development of these elements four Purusharthas are mentioned as duties of man by ancient Indian economic thought they are- Dharma, Artha, Kama, Moksha. It is clear that Indian economic thought give stress not only on physical development of man but also spiritual and moral development for his all round development.

Question 6.
Explain the ancient Indian economic thought in view of needs.
Answer:
Ancient Indian economic thought in view of needs: Man’s wants are unlimited and sources of their supply are limited. Hence due to unsatisfied wants man becomes unhappy. It is given in Kandopnishad that a man’s needs can not be satisfied ever because they do not have needs but greed. One should earn with labour, so poverty should not remain in society, because poverty cannot satisfy the needs and give satisfaction.

Question 7.
What is the relationship between Production and Consumption.
Answer:
Production: Conversion of a raw material into finished goods which can be utilized to satisfy needs is called production. In other words, creation of utility is called production.
Consumption: To satisfy needs directly by consuming goods and services is called consumption. The one who utilises the goods and services to satisfy his needs is called the consumer.

Question 8..
Give the merits of mixed economy.
Answer:
Merits of mixed economy are:

  1. Full liberty of trade and consumption.
  2. Rapid economic development.
  3. Efficient use of resources.
  4. Decrease in economic inequalities.
  5. Easy control on trade cycles.

Question 9.
Mention any three sources of ancient Indian economic thought.
Answer:
The three sources of ancient economic thought are:

  1. Vedas
  2. Upanishads
  3. Smriti

Question 10.
“The study of ancient economic thought is a new alternate of economic system”.
Explain.
Answer:
According to ancient economic thought society should be based on equality and welfare. It is mentioned in Rigveda, one who consumes food himself but keeps his friend, servant, guest, animals, birds, in starvation is a sinner. Western thought of economy give stress on maximum consumption and satisfaction. One the other hand balanced consumption with laborious earning and distribution is given stress in ancient Indian economic thought. This is mine that is yours is a mean thinking, while Vasudhev Kutumbkam is a high thought.

Welfare of all, service to mankind is considered as humane and religious, universally in Indian culture. At present when gap between rich and poor is increasing, Ancient India’s economic thought of balanced and co-consumption, as well as justified distribution can be helpful to establish equality in society and social welfare. On the behalf of above discussion is a proof that Ancient economic thought of India is a new alternative of economic system.

Question 11.
Explain the concept of whole wisdom.
Answer:
Whole wisdom: Modem economies give stress on production for maximum profit earning based on self satisfaction and selfishness. While ancient economic thought tells about control of society and morality over decisions besides freedom and self interest in economic decisions related to economy and production or in other words it should include public welfare.

Long Answer Type Questions

Question 1.
Distinguish between economic and non-economic activities.
Answer:
Man has unlimited needs while resources to satisfy these needs are limited. To satisfy man’s needs he has to do many economic and non- economic activities. The subjects which deals with the study of economy activities of men and society is called economy. In other words study of economic activities done by man to satisfy his and societies need is called economy.
Human activities can be divided into two parts: Economic activities and Non- economic activities

1. Economic activities:
All those activities done by men to earn their livelihood and can be measured in terms of money are called economic activities.
– On the basis of material or things required for economy the main economic activities can be divided as follows:
(a) Production:
Conversion of a raw material into finished good which can be utilized to satisfy needs is called production. In other words creation of utility is called production.
(b) Producer:
Producer is a person who produces goods and services to earn profit. For example- A farmer does farming—in such act a farmer is a producer and farming is production.
(c) Consumption:
To satisfy needs directly by consuming goods and services is called consumption. The person who utilises the goods and services to satisfy his needs is called the consumer.
(d) Exchange:
The meaning of exchange is to give self-produced goods and services to others to satisfy their needs and taking goods and services produced by others to satisfy own needs.
In other words sale and purchase of goods and services by the consumer and producers in market is called exchange.
For example: A consumer purchases wheat and pays for that to satisfy his needs.
(e) Distribution:
To produce goods and services a producer needs some resources or means as land, labour, capital management and entrepreneur. Mutual Cooperation and combination of means help in production. Division of production among means is called distribution. Or in other words distribution of income earned by exchange of goods and services among different means is called distribution.

2. Non economic activities:
Activities by inspiring, feelings, love, affection, social and religious duties, needs of body, love for nation are called non economic activities. Such activities are not measured in terms of wealth.
For example: Caring of children by mother, cooking food for the family etc.

Question 2.
Discuss the important sources of production.
Answer:
(a) Land:
According to ancient thought land is a free gift of nature. In economics land does not mean only earth but natural resources, climate,vegetation, mountains, water, mines etc. In the view of availability of land is stable. Land is a unmovable factor of production because it cannot be taken from one place to other. It is of different grade according to its fertility or production capacity. In the process of production, tax given to land owner in place of its use is called rent.

(b) Labour:
Labour done by man to produce goods and services physically and mentally. That labour is considered labour in economics which is done to produce or gain something. For example: Labour done by housewife is not considered as labour while the same work done by servant is called labour.
Labour is a movable means of production. Labour is not always rewardful. The reward got by a labour against labour is called wage.

(c) Capital:
All those materials and man’s capability which are utilized in production is called capital. A part of capital is kept without use while some is utilised in future. It is one of the factors of production which is earned by man by utilising natural resources. It can also be said to be a tool of man. Machine, tools, industries and transport are example of capital.

(d) Entrepreneur:
In production process a person who gave momentum to land, capital and labour is called entrepreneur. He produces by utilising means in right proportion. He takes risk for production, hence he is called brave and courageous. Without taking risk production can not be done. He is called as organizer and manager. His reward is that earning which is left after paying cost of production. It is called profit. It is not certain. He can get both profit and loss.

Question 3.
Illustrate the main characteristics of Capitalist Economy?
Answer:
Capitalist Economy: It involves ownership of economic activities, private interest, profit motive. There is no interference of government in economic activities. It is called market economy and open economy. It originated in between 1760-1820. It is not present in its pure form in any country of the world. Example, U.S.A, Japan. Germany, England, Italy, France etc. have Capitalist Economy.
Main characteristics of capitalist economy are:

  1. Private ownership on property:
    In this economy factors of production like land, capital, mines, industries, machines etc. are owned by the private owner. They are free to use them. They have sole right to increase, decrease, keep and use property.
  2. Freedom of choice to consumers:
    Consumer have sovereignty over economic activities or other words production of goods is done according to purchasing power of the consumers or price mechanism depends upon consumers choice as consumer has top most place in this economic system hence is called the king of the market.
  3. Economic freedom to entrepreneur:
    What to produce? How to produce? In what quantity to be produced is decided by individual. There is no interference of govt, in the policy related to production.
  4. Competition:
    It improves business, skills as there is the competition among salers and purchasers for selling and purchasing of products to satisfy their needs. Advertisement, gift giving, discount, etc. are some ways adopted to create competition.
  5. Self interest and profit motive:
    Every activity in such system is profit based. Consumption is also done or based on self interest.
  6. Class struggle:
    It divides the society into two classes one is rich in sources and called-capitalist and other class is sourceless and called labourers or workers. Profit earning by workers and exploitation gives birth to class struggle. It raises the gap between the rich and poor.

Question 4
Write the main features of mixed economy?
Answer:
The main characteristics of mixed economy are:
(a) Co-existence of the private and public sectors:
Industries of national importance as basic and heavy industries are set up in the public sector and the consumer goods, industries, cottage industries, agriculture etc. are left to the care of the private sector. Besides there are also the joint and the cooperative sectors.
(b) Social Welfare:
Here the private sector works but it does not pose an obstruction in the way of the social welfare.
(c) Controlled Price System:
In this system the price mechanism is neither set free nor it is discarded completely. Government keeps an eye on the price mechanism in social interest so as to check inequality and maximise social welfare.
(d) Individual Freedom:
No doubt in the mixed economy one is allowed freedom to work and consume but this freedom is restricted in the social interest.

Question 5.
Discuss the concepts of Balanced and Co-eonsumption in context of their validity in present time.
Answer:
Ancient Economic Thought: Fast extraction of natural resources, unlimited use of material and services, unwise consumption, fast industrialization has developed environmental degradation. Increased needs has given birth to degraded human values and moral values. These problems have stressed economists to find way of new economy which can be the solution of capitalist and socialist economy. In such situation Indian economic thinking has given an alternate economic system. Beside it has pathed the way to present economic problems. It is the gist of all those economic thoughts which have important place in ancient Indian scriptures. India’s prosperity of past is available in these scriptures due to which India has been rewarded with the title Vishwa Guru’.

Concepts of consumption
(a) Balanced consumption or tolerant or controlled consumption:
We should consume earned money minimum and in controlled manner to satisfy one’s need. We should earn that quantity of money which could satisfy needs of an individual and his family. Consuming more than need is a crime and that fellow should be punished. One should earn honestly. According to Chanakya balanced consumption keeps an individual healthy. It is also given in scriptures what should be consumed and what not. One should consume goods and services as grace of God by keeping public welfare in mind. He should not think he has right over goods and services.

(b) Co-Consumption:
We should consume things by distributing them in others. It should be based on equality and welfare. It is mentioned in Rigveda one who consumes food himself by keeping friend, servant, guest, animals, birds, in starvation is a sinner while western thought of economy give stress on maximum consumption and satisfaction. On the other hand balanced consumption with laborious earning and distribution is stressed in Indian thought. This is mine that is yours is a mean thought while Vasudhev Kutumbkam’ is a high thought. Welfare of all and service to mankind is considered as human religion universally in Indian culture.
At present when gap between rich and poor is increasing ancient thoughts of balanced and co-consumption as well as justified distribution can be helpful to establish equality in society and social welfare.

Question 6.
Write an easy on Chaturvid Sukh or Chatushtya Sukh?
Answer:
Happiness of body, mind and soul depends upon four Purusharths, Dharma, Artha, Kama and Moksha are called Chatushtya Purusharth in Indian Philosophy. They are compared with a river where Artha and Kama are flow and Dharma and Moksha are river banks.
(a) Dharma:
It has wide meaning it is a quality related to honest livelihood. It should be adopted in behaviour discipline, moral and ethics are bases of good behaviour. They create the discipline and management in Society.
(b) Artha:
Happiness and prosperity are result of Dharma. In Vedas prosperity, wealth and property are considered as Artha while according to ancient literature Vidya, Bhoomi, gold, silver, animals, wealth, crops, metals etc are considered as Artha.
(c) Kama:
It a process of world’s continuity. It is the cause of greeds and origin of different activities according to Atharvaveda.
(d) Moksha:
Money is a source or means not target. .By keeping one away from desires and leaving ties of karma is Moksha. Or not taking birth on earth or breaking the cycle of birth and death on earth is called Moksha or Nirvana.

ADDITIONAL QUESTIONS SOLVED

Multiple Choice Questions (MCQs)

Question 1.
Under capitalist economy, the central problems are solved through:
(a) Government.
(b) Price-mechanism
(c) Prime-Minister.
(d) Public.
Answer:
(b).

Question 2.
Which of the following is not the characteristic of the Indian economy?
(a) Planned Mixed economy.
(b) Agriculture dominated economy.
(c) Federal economy.
(d) Industrially developed economy.
Answer:
(a).

Question 3.
It is not the characterisitc of the socialist economy:
(a) Individual Freedom.
(b) Maximum Social Welfare.
(c) Economic Planning.
(d) Resources owned by the society.
Answer:
(a).

Question 4.
There is a decline of moral values in the:
(a) Socialist system of economy.
(b) Capitalist economy.
(c) Mixed economy.
(d) All of the above.
Answer:
(d).

Question 5.
‘Economy is a system of peoples’ livelihood’ It is:
(a) One of the definitions of economy.
(b) One of the merits of economy.
(c) One of the outcomes of economy.
(d) One of the demerits of economy.
Answer:
(b).

Question 6.
This is not one of the factors of\ production:
(a) Land.
(b) Capital
(c) Nature.
(d) Labour.
Answer:
(c).

Question 7.
Economics is the science of study related with the:
(a) Political activities.
(b) Economic activities.
(c) Recreational activities.
(d) Diplomatic activities.
Answer:
(b).

Very Short Answer Type Questions

Question 1.
Write main characteristics of the capitalist economy.
Answer:
Main characteristics of the capitalist economy are:

  1. Private ownership on property.
  2. Economic freedom.
  3. Consumers’ sovereignty.
  4. Perfect competition.
  5. Role of Price-mechanism.
  6. Self Interest and profit motive.
  7. Class struggle.

Question 2.
Write main characteristics of the socialist economy?
Answer:
Main characteristics of the socialist economy:

  1. Resources are owned by the society.
  2. End of classes and economic equality.
  3. Economic planning.
  4. Maximum social welfare.
  5. End of consumers sovereignty.

Question 3.
What are the three ways of defining an economy?
Answer:
Three ways of defining an economy are :

  1. Economy is a system of peoples’ livelihood.
  2. It is a system of mutual cooperation among producers.
  3. It is a system of mutual exchange.

Question 4.
What are the main factors of
production?
Answer:
The main factors of production are land, labour, capital, management and entrepreneur.

Question 5.
Who propounded the concept of socialist economy in the world?
Answer:
The concept of the Socialist Economy was propounded by Karl Marx whose ‘Das Capital’ and ‘Communist Manifesto’ played an important role in the socialist movement.

Question 6.
What is the role of the consumer in the capitalist economy?
Answer:
In the capitalist economy consumer is the king of the market. The producers produce the goods and services according to the tastes and preferences of the consumers.

Question 7.
Which are the continuous processes of an Economy?
Answer:
The continuous processes of an economy are: Consumption,
production, exchange and distribution.

Question 8.
Name any five countries of the world with the capitalist economy?
Answer:
Five countries of the world with the Capitalist Economy: U.S.A, England, Japan, Canada and Germany.

Short Answer Type Questions

Question 1.
What decides the shape of economies in different countries of the world?
Answer:
The shape of economies depends upon how the processes of consumption, production, exchange and distribution are channelised and how much government interference exists in different activities of the economy.

Question 2.
Explain how ‘Economy is a system of livelihood’?
Answer:
Economy is a system of livelihood. When we took into the activities of a country we find that different people are engaged in different types of works as a farmer ploughs’ fields, labour works in a factory, an employee works in office and so on. All these people work to earn their livelihood. An organisation or a system which promotes and organises these activities of livelihood, is known as economy.

Question 3.
How will you differentiate between the Indian Economy and the economy of a particular state as Rajasthan?
Answer:
The Indian Economy is concerned with the study of economic activities of all the residents in India whereas the economy of a particular state is related with the study of economic activities of the residents of that state only. For example Rajasthan economy is talked in terms of economic activities of the people living in Rajasthan. •

Question 4.
What do you understand by the socialist economy?
Answer:
Meaning of the socialist economy: Socialist economy is a system in which the society as a whole owns all the means of production and all economic decisions are taken by a central authority. In socialism the collective interest is given priority over the private interest in utilising the resources.

Long Answer Type Questions

Question 1.
Point out the merits and demerits of the capitalist economy?
Answer:
Merits and demerits of the capitalist economy:
Merits:

  1. Increasing production and efficiency.
  2. Optimum utilization of resources.
  3. Technical eevelopment.
  4. Increase in capital formation.
  5. Economic freedom.
  6. Rise in living standard.

Demerits:

  1. Decline of moral values.
  2. Problems of unemployment, poverty, starvation, exploitation, inflation etc.
  3. Increase in regional disparities.
  4. Disparities of income and property,
  5. Unlimited consumption.
  6. Concentration of Economic power.

Question 2.
Explain with an example how economy is a system of mutual cooperation among producers.
Answer:
Economy is a system of mutual cooperation among different producers. It is with the combined efforts of different producers that the goods and services are produced. For example, a textile mill buys cotton from the farmer, machines from the machine industries and electricity from power-generating plants. Trains, trucks, buses and other means of transportation help in transporting the goods from one place to another. Without their mutual cooperation it is very difficult to manufacture the cloth. Thus mutual cooperation and coordination among different producers build a structure which is known as economy.

Question 3.
Clarify the merits and demerits of the socialist economy?
Answer:
Merits and demerits of the Socialist economy:
Merits:

  1. Resources are used in the interest of society rather than the private interest.
  2. There an end to class struggle.
  3. Economic resources are utilised in the best manner.
  4. Economic equality is established.
  5. There is an end to the problems of unemployment and exploitation.

Demerits:

  1. There is dominance of bureaucracy.
  2. Dictatorship of party.
  3. Inefficiency and lack of production.
  4. Lack of economic incentives and motivations.
  5. Red-tapism and nepotism.
  6. Lack of freedom.

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