Class: 10th Social Studies

(ECONOMICS)
L-1 Basic Concepts

Answer the following questions in one word or one sentence:-

Q 1:- Define National Income.
Ans:- National Income is the net factor income earned by the normal residents of
a country in the form of wages, rent, interest and profit during one year.
Q 2: Define per capita income?
Ans: It is the average income earned by the people of a country in a definite
period of time.
Per Capita Income= National Income/Population
Q 3:- What is meant by consumption?
Ans: Consumption is the expenditure made on consumption during one year in an
economy.
Q4: Define Investment.
Ans: In addition to capital is called investment.
Q.5. What is meant by induced investment?
Ans. Induced investment is that investment which depends upon the level of
income and profit.
Q.6. What is meant by autonomous investment?
Ans. That investment which is independent of the changes in the level of income,
output and profits, is called as autonomous investment.
Q 7. What is capital formation?
Ans. An addition to capital stock is called capital formation.
Q 8. What is meant by disguised unemployment?
Ans. Disguised unemployment is that situation when more people are doing the
same work which can be done by a few people.
Q 9: Define full Employment.
Ans: Full employment is that situation in which all the people who are willing to
work at existing wage rates and they get work without any difficulty.
Q10.What is meant by inflation?
Ans: Inflation means constant rise in prices. In economics, the constant rise in
prices is called inflation.
Q11. What is meant by supply of money?
Ans: Supply of money means currency and deposits of banks available with the
people of the country.
Q12.What is meant by deficit financing?
Ans:-Deficit Financing is the method by which government meets the budgetary
Deficit by taking loans from the central banks. Central banks meets this deficit by
printing new currency notes.
Q13.How many people are considered to be below poverty line in India?
Ans:- Those people are considered to be below poverty line in India who have
not intake 2400 calories per person per day for rural areas and 2100 calories for
urban areas.
Q14. What is meant by foreign aid?
Ans. By foreign aid, we mean the inflow of external assistance in the form of
foreign capital, loans, grants and assistance by foreign countries.
Q.15. Define balance of payment.
Ans. Balance of payment is a statement of systematic record of all economic
transactions between one country and the rest of the world (or foreign
countries).
Q16.What is meant by fiscal policy?
Ans. The policy of the government regarding income and expenditure is known
as fiscal policy.

Prepared By: Vetted By:

Ranjit Kaur, S.S Mistress, Hardevinder Singh, S.S Master
GSSSS Tibber, Gurdaspur G.H.S Mianpur Changar, S.A.S Nagar