Meaning and Types of Economics Class 8 Questions and Answers KSEEB 8th Social Science
I. Fill in the blanks with suitable words.
Economy refers to the nature of organisation of _____________ .
NITI Ayog was set up in _____________ .
Free enterprise is a basic feature of _____________ economy.
Good example of capitalist economy is _____________ .
Co-existence of public and private sectors is seen in _____________ .
II. Answer the following after discussing them in groups.
What is an economy?
An Economy may be described as a man-made organisation for the satisfaction of human wants.
A.J. Brown defines economy as “a system by which people get a living”
Mention the Features of capitalist economic system.
The important Features of capitalist economic system are as follows ______________
Private property, freedom of enterprise, consumer’s sovereignty, profit motive, competition, market and prices, absence of government interference.
What are the defects of capitalist system?
Capitalist Economy System promote to acquire and accumulate wealth. Due to freedom of enterprise, the individual can earn the highest possible profit. Capitalist class are motivated to maximizing revenue.
What is planning?
Planning mechanism is used by the government to prepare development plans and decide the roles to be played by the private and public sectors in the development of the economy.
How are economies Classified on the basis of level of development?
Economics classified into two catagories as ______________
- developed Economy and
- developing economy
Developed Economy: Developed countries have higher national and per capital Income, high savings and investment and therefore high rate of capital formation, ex. U.S.A and
(i) other European countries
(ii) Developing countries are low on the ladder of development. They are also called as under developed, backward or poor countries. The national income and per capita income in these countries is low.
Ex: India and other Asian countries.
How does government regulate the activities of the private sector in a mixed economy ?
Plans are formulated for the private sector and is supported through incentives, support and subsidies to work as per national priorities. Government also regulates the activities of the private through various policies such as licensing policy, taxation policy, price policy, monetary policy and fiscal policy etc.
What is dis investment ?
Government is selling its shares of public sector industries, which is called dis investment.
Why is India considered a developing economy?
The national income and per capita income in our country is low. India is backward in Agriculture and industries. Indians have low standard of living, poor health and sanitation, high infant mortality, high birth and death rates and poor infrastructure. So, India is a backward country or developing country.
Additional Questions and Answers
Which are the institutions that regulate the modern economic system ?
RBI, SEBI, World Bank, IMF, WTO SAARC, ADB etc. are the institutions regulate the modern economic system.
What is a socialist Economy ?
When productive resources are owned and controlled by the government to promote the overall interest of the society. It is called a socialist system.
Name the socialist features ?
The features of socialist economy are
- Collective ownership of means of production and wealth.
- Social welfare objective
- Central Planning
What are the broad objections of Indian plans?
The objectives of Indian plans are
(a) Economic growth
(c) Self- reliance
(d) Social Justice
(e) Elimination of poverty
(f) Creation of conditions of near full employment Satisfaction of basic needs like food, clothing, shelter, education, health etc.
Expand the followings
- RBI – Reserve Bank of India
- SEBI – Securities and Exchange Board of India.
- IMF – International Monetary fund
- WTO – World Trade Organisation
- SAARC – South Asian Association for Regional Co-operation.
- ADB – Asian Development Bank.
Why no class conflict happen in socialist economy ?
All are co-workers in socialistic society and there is only the working class. Hence, there is no class conflict.
What are the features of mixed economy.
A mixed economy Combines the good features of both capitalism and socialism.
(a) co existence of public and private sectors.
(b) Individual freedom
(c) Economic planning
(d) Price mechanism
What is the Role of public sector in India?
The public sector has played an important role in the development of Indian Economy. It has contributed to – development of infrastructure, establishment of basic and heavy industries, establish industries in several backward regions, promoting trading and marketing activities, including international trade.
National Institution for transforming India Ayog.
When was planning commission set up in india?
In 1950, planning commission was set up in India
How many Five year plans implemented by planning commission of India.
Twelve, five year plans and many annual plans were implemented by the Indian Planning commission.
When was Indian planning commission replaced by NITI Ayog?
In 2015, the planning commission has been replaced by the NITI Ayog.