Question 1.
Explain the types of economies by filling correct information in the place of questions in the circle.
Answer :
| Capital Economy |
Mixed Economy |
Socialist Economy |
| Germany, Japan, USA |
India, Sweden and United Kingdom |
China and Russia |
| Management in private hands. |
Co-existence of private and public sectors. |
Management in the hands of Government |
| Earn maximum profit. |
A balance between profit and social service |
Achieving Social welfare |
Question 2.
Give an explanation :
(1) Economy begins at home.
Answer :
- Family finances are primarily concerned with income and expenditure.
- The family's income is restricted, but its needs are limitless.
- Income and expenditure must be balanced by the family's head.
- He decides on a preference for expenditure in order to establish a balance between income and expenditure.
- Similarly to how we manage our family's finances, villages/cities, states, countries, and the entire world require economic management.
(2) India’s economy is of mixed type.
Answer :
- The Indian economy coexists with both the governmental and private sectors.
- The government and private individuals share ownership and management of the means of production.
- The private sector produces for profit, whereas the public sector strives for social welfare.
- As a result, we have characteristics of both the capitalism and socialist economies.
- As a result, India is said to have a mixed economy.
(3) On the basis of economies, we can divide countries into three groupes.
Answer :
- Economy refers to the enterprise involved in the production, distribution, and consumption of commodities and services in certain regions.
- Private persons own and oversee manufacturing in countries such as Germany, Japan, and the United States. This is known as a capitalist economy.
- The means of production belong to society as a whole, and the economy is under government control in Russia and China. This is known as a socialist economy.
- In India, Sweden, and the United Kingdom, the public and private sectors coexist. This is known as a Mixed Economy.
- Thus, we can classify countries into three groups on the basis of their economy.
Question 3.
Write the following questions in one line:
(1) To which economic factor is the management of individual or family finances related?
Answer :
The management of individual or family finance is related to income and expenditure.
(2) From which Greek word is the term ‘Economics’ derived?
Answer :
The term ‘Economics’ is derived from the Greek word OIKONOMIA.
(3) In capitalistic economy, to whom does the ownership and management of means of production belong?
Answer :
The ownership and management of means of production belong to the private individuals in the capitalist economy.
(4) What do you mean by globalisation?
Answer :
Globalisation means aligning the country’s economy with the World economy.