CBSE Class 10 Economics Important Questions

Here are the top questions from each chapter of Economics Important Questions Class 10 to help you prepare well for your exams. These questions cover key concepts and topics.

1. What is development? What are the two aspects of development in Chapter 1?

Ans: Development means progress or improvement in the standard of living and the quality of life. It involves making the lives of people better. There are two main aspects of development:

• Economic Development: This means increasing the income, wealth, and employment opportunities for people. It includes activities like building factories, improving agriculture, and creating jobs. When people earn more money, they can buy more goods and services, leading to a better life.

• Social Development: This means improving the overall quality of life, including health, education, and equality. It involves ensuring that everyone has access to good healthcare, schools, clean water, and proper housing. Social development focuses on making sure that people live healthy and educated lives.

2. Why do different people have different goals for development in Economic Chapter 1?

Ans: Different people have different goals for development because their needs and priorities vary based on their situations and backgrounds. For example:

• A farmer may want better irrigation systems and access to markets to sell crops because this directly affects his livelihood and income.

• A student may want better schools and more educational resources to get a good education and a better job in the future.

• A worker in a factory may want better working conditions and higher wages to improve his quality of life.

• These different goals exist because what is important for one person may not be as important for another. Each person aims for development that best suits their own needs and aspirations.

3. What are the three sectors of the Indian economy in Sectors of The Indian Economy?

Ans: The Indian economy is divided into three main sectors:

• Primary Sector: This sector involves activities that are directly related to natural resources. It includes farming, fishing, mining, and forestry. For example, growing crops, catching fish, and extracting coal are primary sector activities. This sector forms the base of the economy and is crucial for providing raw materials.

• Secondary Sector: This sector involves manufacturing and processing. It takes raw materials from the primary sector and converts them into finished goods. For example, turning cotton into clothes, making steel from iron ore, and constructing buildings are secondary sector activities. This sector adds value to raw materials and creates employment.

• Tertiary Sector: This sector provides services rather than goods. It includes activities like banking, education, healthcare, transport, and retail. For example, teaching in a school, working in a hospital, and driving a bus are tertiary sector activities. This sector supports the primary and secondary sectors by offering essential services.

4. Why is the tertiary sector growing so rapidly in India in Chapter 2?

Ans: The tertiary sector is proliferating in India for several reasons:

• Increased Demand for Services: As incomes rise, people spend more on education, healthcare, travel, and entertainment. This increases the demand for services in the tertiary sector.

• Development in Technology: Advances in technology have increased services like information technology (IT) and telecommunications. Many global companies outsource their IT and customer service operations to India, creating more jobs.

• Urbanisation: As more people move to cities, there is a greater need for services like housing, transportation, banking, and retail.

• Globalisation: Globalisation has opened up the Indian market to international businesses, increasing the demand for services related to trade, finance, and legal assistance.

• These factors have collectively contributed to the rapid growth of the tertiary sector in India.

5. What is money? What are its functions mentioned in Money and Credit?

Ans: Money is anything that is widely accepted as a medium of exchange for goods and services. It simplifies trade by eliminating the need for a barter system, where goods are directly exchanged for other goods. Money performs four main functions:

• Medium of Exchange: Money is used to buy and sell goods and services. For example, you can use money to buy groceries, pay for a bus ride, or hire a plumber.

• Store of Value: Money can be saved and used in the future. It holds its value over time, allowing people to save for future expenses. For example, you can save money in a bank account for future use.

• Unit of Account: Money provides a standard measure of value, which makes it easy to compare the value of different goods and services. For example, a book costing ₹200 can be compared to a shirt costing ₹500 using money as the common measure.

• Standard of Deferred Payment: Money is accepted for future payments, allowing people to borrow and lend. For example, you can take a loan to buy a car and repay it in instalments over time.

6. What is the difference between formal and informal sources of credit in Chapter 3?

Ans: 

• Formal Sources of Credit: These include banks, cooperatives, and other financial institutions regulated by the government. They offer loans at lower interest rates and follow legal procedures. For example, banks provide home loans, education loans, and business loans. These sources are reliable and safe because they are monitored by the Reserve Bank of India (RBI).

• Informal Sources of Credit: These include moneylenders, friends, relatives, and traders. They are not regulated by the government and often charge higher interest rates. For example, a moneylender in a village might give a loan to a farmer but at a very high interest rate. Informal sources are more flexible but can be risky and expensive due to the lack of regulation.

7. What is globalization? How has it affected the Indian economy in Globalisation And The Indian Economy?

Ans: Globalization refers to the process of increasing integration and interdependence among countries, leading to the exchange of goods, services, ideas, and technology across borders. It has affected the Indian economy in several ways:

• Increased Trade: Globalization has opened up international markets for Indian goods and services, leading to higher exports and imports. Indian companies can sell their products worldwide, and consumers in India have access to a variety of foreign products.

• Foreign Investment: Globalization has attracted foreign companies to invest in India, setting up factories, offices, and businesses. This has created jobs, brought in new technologies, and boosted economic growth.

• Technology and Ideas: Globalization has facilitated the exchange of technology and ideas. Indian companies have adopted advanced technologies, improving productivity and efficiency.

• Employment Opportunities: The growth of sectors like IT and manufacturing due to globalization has created numerous job opportunities for Indian workers.

• Overall, globalization has contributed to economic growth, modernization, and increased global connectivity in India.

8. What are multinational companies (MNCs)? How do they operate in India mentioned in Chapter 4?

Ans: Multinational companies (MNCs) are large corporations that operate in multiple countries, beyond their home country. They have offices, factories, and branches in several countries. MNCs operate in India in the following ways:

• Setting Up Factories and Offices: MNCs establish manufacturing plants and offices in India to produce goods and offer services locally. For example, companies like Honda and Samsung have factories in India where they produce cars and electronics.

• Collaborating with Indian Companies: MNCs often form partnerships with Indian companies to expand their operations. For example, Maruti Suzuki is a collaboration between the Indian company Maruti and the Japanese company Suzuki.

• Bringing in Foreign Investment: MNCs invest large amounts of capital in India, contributing to economic growth and development. This investment helps create infrastructure, such as roads, ports, and power plants.

• Introducing Advanced Technology: MNCs bring in new technologies and management practices, helping Indian industries become more efficient and competitive.

• By operating in India, MNCs provide employment, contribute to economic growth, and help in the transfer of technology and skills.

9. What are consumer rights? Name some key consumer rights from Chapter 5 Consumer Rights.

Ans: Consumer rights are the rights given to individuals to protect them from unfair trade practices and ensure they get fair treatment in the market. Key consumer rights include:

• Right to Safety: This right protects consumers from goods and services that are hazardous to health or life. For example, electrical appliances should meet safety standards to prevent accidents.

• Right to be Informed: This right ensures that consumers have access to complete information about the product, including its quality, quantity, price, and ingredients. For example, food packaging must list all ingredients and expiration dates.

• Right to Choose: This right allows consumers to select from a variety of products at competitive prices. For example, there should be multiple brands of toothpaste available in the market.

• Right to be Heard: This right ensures that consumer interests are considered in government policies and business decisions. Consumers can voice their complaints and opinions about products and services.

• Right to Redress: This right provides consumers with a way to seek compensation or replacement for defective goods or poor services. For example, if a mobile phone stops working within the warranty period, the consumer can get it repaired or replaced.

10. What is the role of the consumer court in Consumer Rights Chapter 5?

Ans: Consumer courts are special courts that deal with consumer disputes and grievances. Their role includes:

• Ensuring Fair Treatment: Consumer courts ensure that consumers are treated fairly and justly. They protect consumers from exploitation and unfair trade practices.

• Compensation for Consumers: They provide compensation or redress to consumers who have been sold defective goods or received poor services. For example, if a consumer buys a faulty product, the court can order the seller to refund the money or replace the product.

• Encouraging Businesses to Maintain Standards: By addressing consumer complaints, these courts encourage businesses to maintain high standards of quality and service. This helps build trust between consumers and businesses.

• Promoting Consumer Awareness: Consumer courts play a role in educating consumers about their rights and responsibilities. They help consumers understand how to file complaints and seek redress.

• Overall, consumer courts ensure that consumer rights are protected and that businesses adhere to fair practices.

How do Economics Important Questions Class 10 Help You with Exams?

Economics Important Questions for Class 10 help students by focusing on key topics for exams and providing good practice.

• Clarify Concepts: Important questions cover key topics, helping you understand and remember concepts better.

• Exam Pattern: They show the types of questions likely to be asked, familiarising you with the exam pattern.

• Practice: Solving these questions improves your problem-solving skills and speed.

• Confidence: Regular practice reduces exam stress and increases confidence.

Practising CBSE Class 10 Economics Important Questions helps students gain key concepts and perform well in exams. These questions match the exam pattern, ensuring thorough preparation. Students can solve CBSE Important Questions for History, Geography, and Political Science to score well in Social Science. For more study resources and updates on CBSE/ICSE/State Board/Competitive Exams. Visit Vedantu for detailed study materials and practice papers to improve student's confidence and score higher in your board exams.

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