Class X

English
Worksheet 2

1. Read the following passage carefully:

1. Rising prices are a causing a great concern to the Indian economists. It is true that
prices can never remain stationary. A certain amount of fluctuation is inherent in the
very nature of prices, and in a developing economy, they usually display an upward
trend. But if prices keep rising persistently, they cause great hardships to the people.
They spare neither the rich nor the poor, neither the producers nor the consumers.
They make economic activities uncertain and unstable, causing great unrest in the
minds of people.

2. Inflation is a self-accelerating process. It is a phenomenon that feeds on itself and

initiates a vicious cycle. Rising prices drive people to demand increased wages and
salaries. Since such demands are restricted in the beginning, they resort to pressure
tactics like strikes and demonstrations. But such tactics only decrease production and
aggravate the situation. And if the demands are met, there is a fresh spurt in prices.
Thus, all benefits accruing from the additional income are neutralized. Then fresh
demands are raised and this cycle goes on.

3. The fixed-income groups like salaried people, wage-earners and pensioners are the
most helpless victims of inflation. As prices rise, their real income get eroded. The
additional dearness allowance which the government sanctions from time to time
proves of no use to them, because their purchasing power actually goes down.
Inflation induces businessmen to invest their money in non-productive assets like gold
and land whose real worth is not affected by the rising prices. High prices also
adversely affect the exports of the country and distort the balance of foreign trade.

4. Our economic planning has suffered from serious drawbacks right from the
beginning. s

Questions:
1. Based on your understanding of the passage, answer the following questions
briefly in 30-40 words each: (2 x 4 = 8)
(a) Why are rising prices a cause for great concern?
(b) How does inflation cause a vicious cycle?
(c) How do high prices affect the country?
(d) How did our economy suffer during the period of inflation?

2. Answer the following questions in one-two words each: (1 x 2 = 2)

 (a) Which word in Paragraph 2 means the same as ‘overcome/overrule’?
(b) Which word in Paragraph 4 is similar in meaning to ‘continuously’?

3. Fill in the blanks by choosing the correct options: (1 x 2 = 2)

(a) _________ in Paragraph 2 means the same as ‘resulting’.
(i) aggravating (ii) accruing (iii) raising (iv) decreasing

(b) _________ in Paragraph 4 is opposite in meaning to ‘slow’.

(i) fast (ii) quick (iii) rapid (iv) increase