Economics Class 10 Marathon

QUICK ECONOMICS RECAP
MOST REPEATED PREVIOUS YEAR BOARD

EXAM QUESTIONS
MULTIPLE CHOICE QUESTIONS

CHAPTER : 1
DEVELOPMENT
❏ Different people can have different
developmental goals which may even
be conflicting.
❏ People always seek a mix of goals.

Apart from income, people also seek
other goals like:
- Equal treatment
- Freedom
- Respect
- Security
DEVELOPMENTAL GOALS OF DIFFERENT
CATEGORIES OF PERSONS
Category of Person Developmental Goals / Aspirations
Landless rural More days of work and better wages.

labourers
Prosperous farmers Assured a high family income through

from Punjab higher support prices for their crops and
through hardworking and cheap
labourers.
Urban unemployed Regular jobs, better wages, social

youth security etc.
A girl from a rich She gets as much freedom as her brother

urban family and is able to decide what she wants to
do in life.
An adivasi from Better wages and living conditions,

Narmada valley proper education, identity among public,
should be able to enjoy Fundamental
Rights.
MIX OF GOALS
MATERIALISTIC GOALS - that can be bought

by money. Like income, house, car, etc.
NON-MATERIALISTIC GOALS - that can not

be bought by money but are equally important
to people. Like, respect, equal treatment, etc.
NATIONAL DEVELOPMENT
Limitations of Per Capita
Income Method
Hides Disparities
Unequal distribution of Income
Ignores Social aspect of life.

World Bank publishes World Development Report
(WDR) every year to compare the nations on the
basis of Per Capita Income.
Countries with per capita income of US$ 12,056

per annum and above in 2017, are called rich
countries.
Countries with per capita income of US$ 955 or

less are called low-income countries.
India comes in the category of low middle

income countries because its per capita income in
2017 was just US$ 1820 per annum.
State Infant Literacy Per Net
Mortality Rate % Capita Attendance
Rate per (2011) Income Ratio (per
1,000 live for 100 person)
births 2015-16 Age 14-15
(2017) (Rs.) 2013-14
Haryana 30 82 1,80,174 61
Kerala 10 94 1,63,475 83
Bihar 35 62 34,409 43
Highest in the respective category

PUBLIC FACILITIES:
Those basic facilities that government

provides to its citizens for their well being
are known as public facilities. For
example, vaccination, security, health
and education.
For Instance:
1. Ideal weight of 14 years Girl: 18.5 and

24.9
2. Ideal weight of 14 years Boy : 18.5 and

24.9
Human Development Report (HDR)
Useful method to measure development
HDR published by UNDP (United Nations

Development Programme)
Compares countries based on the

educational levels, health status, and per
capita income
India occupies 131 Rank as per 2019

Report.
SUSTAINABLE DEVELOPMENT
● Development that meets the needs of the

present without compromising the ability of
future generations to meet their own needs.
● Need for sustainable development :

- Limited availability of resources.
- Over-exploitation will deplete these

resources.
Ques : In which state in India is the
infant mortality rate lowest?
(a) Kerala
(b) Bihar
(c) Uttar Pradesh
(d) Punjab
Ques : Per capita income is:
(a) income per person

(b) income per family
(c) income per earning person
(d) income per month
Ques : Which of the following statements about
money are true?
a) Money cannot buy you a pollution-free

environment.
b) Money cannot ensure that you get

unadulterated medicines.
c) Money may also not be able to protect you

from infectious diseases.
d) All of the above.

Which of the following statement best signifies
this cartoon?
Fig. 1
A. Country 1 and more rich people than country B
B. Country B are more rich people than country B
C. Country A and more equitable distribution of money
D. BOTH B and C
Ques : The ........... helps in maintaining the
nutritional levels of poor people by
providing food at lower cost.
(a) BMI body mass index

(b) PDS public distribution system
(c) GNI gross national income
(d) HDI human development index
Why is groundwater table reducing in India
day by day?
A. Groundwater is a nonrenewable resource
B. Groundwater is a renewable resource
C. Humans have been exploiting groundwater
D. Both A and C
Assume there are four families in a country. The
average per capita income of these families is Rs
5000. If the income of three families is Rs 4000,
Rs 7000, and Rs 3000 respectively, what is the
income of the fourth family?
A. Rs 7000
B. Rs 6000
C. Rs 8000
D. Rs 4000
Assertion : Suppose the literacy rate in a state is
78% and the net attendance ratio in secondary
stage is 47%.
Reason : More than half of the students are

going to other states for elementary education.
(a) Both assertion and reason are true and reason is

the correct explanation of assertion
(b) Both assertion and reason are true but reason is

not the correct explanation of assertion.
(c) Assertion is true but reason is false
(d) Both assertion & reason are false.

Assertion : Different people have different
developmental goals.
Reason : The capitalist approach to development

is detrimental to poor section of the society.



Assertion : A high average income is not
indicative of the overall well-being or human
development in a country.
Reason : Average income does not cover

indicators like level of literacy rate, health
facilities and public facilities in a country.



Study the data given below and answer the
questions that follow: Some comparative
data on Punjab, Kerala & Bihar
Ques : Which state has the highest infant

mortality rate?
Ans : Bihar has the highest infant mortality

rate.
Ques : Why does this state have the highest

infant mortality rate? Give two reasons.
Ans : Due to the following two reasons, Bihar

has the highest infant mortality rate:
(i) Low income.
(ii) Poor medical facilities.
Ques : What may be development for one may
not be development for the other." Explain by
giving examples.
Ans : Different people have different developmental

goals such as :
● Industrialists may want more dams to get

more electricity. But this may submerge the
land and disrupt the lives of people who are
displaced - such as tribals.
● A farmers wants to sell food grains at a

higher price but a low earning person wants to
purchase it at low prices.
● More wages means development for a worker,

but it affect negatively a businessman.
Ques : What is Per Capita Income? Why is "Per
Capita Income" not an adequate indicator of
economic development of a country? Explain.
Ans : Per capita income is the total income of the

country divided by its total population It is not an
adequate indicator because:
● It does not tell us how this income is

distributed.
● Life expectancy and Infant Mortality Rate are

other important criteria for measuring
development.
● Education and literacy level are other

indicators of development.
● Pollution free environment, less corruption,

gender equality etc. are also important.
CHAPTER : 2
SECTORS OF INDIAN
ECONOMY
Sectors of Indian Economy
On the basis of nature On the basis of On the basis of

of job working conditions ownership
Primary Organised Private
Secondary Unorganised Public
Tertiary
GROSS DOMESTIC PRODUCT
It is the value of all the final goods

& services produced within a
country during a particular year.
GDP shows how big the economy

is.
In India, the mammoth task of

measuring GDP is undertaken by a
central govt. ministry.
Why tertiary sector becoming so
important in India ?
Increase in demand for basic services
Helps in development of Primary &

Secondary activities
Increase in income level
Increasing importance of info &

communication tech.
DISGUISED SEASONAL
UNEMPLOYMENT UNEMPLOYMENT
People appear to be It is a situation in which

employed, but are people are not able to
actually not employed. find jobs during some
months of the year.
This usually happens Because of the seasonal

among family members character of agriculture
engaged in agricultural in India agricultural
activities. labourers find work only
during busy seasons as
sowing, harvesting.
WAYS OF CREATING MORE EMPLOYMENT
MGNREGA, 2005
Construction of dams or canals -
employment
● Guarantees 100 days of
employment to all in a year in
Local bank should provide cheap
rural areas.
agricultural
credit
● If the government fails in its
duty to provide employment, it
will give unemployment Govt. should Identify, promote and locate
allowances to the people. industries
Emphasis on education and training centres

Organised Sector Unorganised Sector
● Registered with the govt. ● Not registered with govt.
● Rules & Regulations given in

various acts like, Minimum ● Rules and regulations are there but
Wages Act, Factories Act, etc. not followed.
● Fixed working hours payment for ● Long working hours. No payment for
overtime (high salary). overtime (low salary.
●
● Job security. ● No job security.
● Provision for paid holidays, ● No such provision of paid holidays,

gratuity, provident funds. gratuity, etc.
● i.e, clerk, doctor, teacher, etc. ● i.e, : a daily wage labourer, worker/
helper in shop, etc.
Public Sector Private Sector
●
●
● Most of the assets are owned by Owned by individual or group of
the govt. individual.
● Govt. provides all services. ● Here, Services are offered by the

owner of the firm.
● Govt. raises money for various
activities through taxes. ● The private sector collects money for
the services they provide.
● In public sector the motive is not
profit earning. ● Activities in the private sector are
guided by the motive to earn money.
● i.e, Railways, post offices
● i.e, Tata Steel and Reliance
Roles of Government in providing
services
Developing infrastructure : Govt. have to

undertake heavy spending i.e, construction
of roads, bridges, railways, electricity, etc.,
Provides healthcare facilities and

education
Attention to human development aspects

: Availability of safe drinking water,
housing, nutrition.
Ques : INSURANCE is an example of
(a) primary sector

(b) secondary sector
(c) tertiary sector
Ques : The goods that are used as raw

materials for further production are
known by which name?
(a) Final goods

(b) Consumer goods
(c) Material goods
(d) Intermediate goods
Match the following:
List A List B
A. Public sector 1. Service sector

B. Primary Sector 2. Regular employment
C. Tertiary Sector 3. Government owns it
D. Organised Sector 4. Exploits natural
resources
CODES
A B C D
a) 3 1 4 2
b) 2 1 4 3
c) 3 4 1 2
d) 4 3 1 2
Hari, son of a farmer, after studying from
Agricultural University, has become a research
scientist and undertakes work for developing
hybrid oil seeds.
Analyse the information to know the sector

in which he has shifted from past to present.
A. From tertiary to primary
B. From secondary to primary
C. From primary to tertiary
D. From primary to secondary

Ques : The type of unemployment in which
more number of people work than actually
needed is known as
(a) disguised unemployment

(b) seasonal unemployment
(c) underemployed
(d) over employed
Assertion : In India, the primary sector is the
largest employer.
Reason : The demand for services has increased

enormously.



Assertion : The development of agriculture and
industry leads to the development of service
sector.
Reason : As the primary and secondary sectors

develops, the demand for transport, storage
structures, banks, insurance, etc., increases.



Assertion : Reliance industries is a privately -
owned Firm.
Reason : Government is a major stakeholder is

reliance industries.



Assertion : GDP shows how big an economy is.
Reason : GDP is the value of all goods and

services produced within the domestic territory of
a country in a year.



Ques : Compare the employment conditions prevailing in the organised & unorganised sector?
Organised Sector Unorganised Sector
1. Registered with the govt. 1. Not registered with govt.
2. Rules & Regulations given in

various acts like, Minimum 2. Rules and regulations are there but
Wages Act, Factories Act, etc. not followed.
3. Fixed working hours payment for 3. Long working hours. No payment for
overtime (high salary). overtime (low salary.
4. Job security. 4. No job security.
5. Provision for paid holidays, 5. No such provision of paid holidays,

gratuity, provident funds. gratuity, etc.
6. i.e, clerk, doctor, teacher, etc. 6. i.e, : a daily wage labourer, worker/
helper in shop, etc.
Ques : Why is NREGA also called the Right to work? Explain the objectives of National
Rural Employment Guarantee Act 2005.
Ans :Every state or region in India has potential for increasing the income and employment in that
area. Recognising this, the Central Government in India has passed an act called the National Rural
Employment Guarantee Act 2005,
Main objectives of the NREGA 2005 are:
● To implement the Right to Work in 200(initially) districts of India.
● To guarantee 100 days of employment in a year by the Government. In case the Government
fails, it offers unemployment allowance.
● To give preference to the type of work that will help increase the production from land.
Ques : Differentiate b/w private and public sector with
examples.
Public Sector Private Sector
1. Most of the assets are 1. Owned by individual or

owned by the govt. group of individual.
2. Govt. provides all 2. Here, Services are offered

services. by the owner of the firm.
3. Govt. raises money for 3. The private sector collects

various activities money for the services
through taxes. they provide.
4. In public sector the 4. Activities in the private

motive is not profit sector are guided by the
earning. motive to earn money.
5. i.e, Railways, post 5. i.e, Tata Steel and

offices Reliance
Underemployment continues to be rampant in the rural
areas. Suggest any three ways through which
employment for rural people can be generated.
● People can be employed in projects like construction of

dam/canal/ roads in the village.
● Government invests and employ people in providing

transportation and storage services.
● People can be employed in services like banking, trade,

etc.
● Government can identify, promote industries and

services in semi-rural areas to enhance employment.
● Government can open centres to give them training and

financial assistance to help them become self –
employed.
Study the picture and
identify to what
sector does the
activity belong to:
A. Primary Sector
C. Tertiary Sector
C. Secondary Sector
D. None of the above

Which among the following most
appropriately describes underemployment?
A. Workers are not paid as per their work
B. Workers are working less than what they

are capable of doing
C. Workers are not skilled
D. Workers are not willing to work

BARTER SYSTEM
● Barter is a medium in which

goods/services are exchanged
directly without a common unit.
● Also known as double coincidence

of wants.
● Has no value of its own. Has a value only because it is
authorised by the government of a country.
● In India- the Reserve Bank of India issues currency notes

on behalf of the government.
Credit (loan) refers to an agreement
ADVANTAGE DISADVANTAGE in which the lender supplies the
borrower with money, goods or services
Helps to increase Credit may push the in return for the promise of future
earnings person into a debt payment.
trap. I.e, crop failure
Terms of Credit :
(i) Comprises : Interest rate, collateral
& documentation requirement, and the
mode of repayment.
(ii) The terms of credit vary

substantially from one credit
arrangement to another.
(iii) They may vary depending on the

nature of the lender and the borrower.
COLLATERAL
An asset that the borrower owns and
uses this as a guarantee to a lender
until the loan is repaid
i.e, land, building, vehicle, livestocks,

deposits with banks).
If the borrower fails to repay the loan,

the lender has the right to sell the
asset or collateral to obtain payment.
Formal Source Informal Source
Banks require collateral

and proper documentation No collateral is required.
for getting a loan.
A reasonable rate of Higher rate of interest is

interest is charged. charged.
There is no organisation to
RBI supervises them.
supervise them.
Terms of credit are fair and Terms of credit are very

reasonable. tough and unreasonable.
Includes moneylenders,
Includes banks and
traders, employers, friends
cooperatives.
and relatives.
SELF-HELP GROUPS
A Self Help Group is a financial intermediary committee

made up of people who share a common local area as well
as a common type of work or financial situation. The idea
behind its functioning is to encourage people to pool their
savings & there by increase their opportunities for
earnings.
● A typical SHG has 15-20 members, usually belonging

to one neighbourhood, who meet & save regularly.
● Saving per member varies from Rs. 25 to Rs. 100 or

more, depending on the ability of the people to save.
● Members can take small loans from the group itself

to meet their needs WITHOUT A COLLATERAL.
● The group charges interest on these loans but this is

still less than what the moneylender charges.
● After a year or two, if the group is regular in savings,

it becomes eligible for availing loan from the bank.
Ques : Ram and Shyam are small farmers.
Ram has taken credit 1.5% per month on <
20000 from a trader while Shyam has taken
credit at 8% per annum from bank on the
same amount. Who is better off?
(a) Ram is better because he has to do no

paperwork.
(b) Shyam is better because his interest
payment is less.
(c) Ram is better because he has not paid
any collateral.
(d) Both Ram and Shyam are equal so no one
is better off.
Ques : Bank laying down norms for bank is
(a) RBI
(b) SBI
(c) syndicate bank
(d) all of these
Ques : Raghav has surplus money so he

opens a bank account and deposits in it.
Whenever he needs money, he can go to
his bank and withdraw from there. This
kind of deposit with the banks are known
as
(a) demand deposit

(b) term deposit
(c) fixed deposit
(d) surplus deposit
Ques : Which among the following lenders will possibly not
ask the borrower to sign the terms of credit?
(a) Banks
(b) Moneylenders
(c) Cooperatives
(d) Private agencies
Ques : Which of the following is not a feature of Self Help

Groups (SHGs)?
(a) It consists of 15-20 members or more.

(b) Here members pool their savings which acts as
collateral.
(c) Loans are given at nominal rate of interest.
(d) It is an informal source of credit.
Assertion : The modern currency is used as a
medium of exchange; however, it does not have a
use of its own.
Reason : Modem currency is easy to carry



Assertion : The terms of deposit are same for all
credit arrangements.
Reason : Credit arrangements are very complex

process so to remove the complexities same terms
of deposits are used.



Assertion : Banks charge a higher interest rate on
loans than what they offer on deposits.
Reason : The difference between what is charged

from borrowers and what is paid to depositors is
their main source of income.



Ques : Why is there a great need to expand
formal sector of credit in India? Explain any
three reasons.
Ans : Due to the following reasons it is necessary for

the banks and the cooperative societies to increase
their lending facilities in the rural areas:
a. There is limited availability of the formal sector

credit sources in the rural areas.
b. The poor borrowers are bound to take loan from

the moneylenders at high rate of interest.
c. Due to high rate of interest they are not able to

repay the loan and caught in debt- trap.
Ques : Describe any four advantages of Self-Help
Groups for the poor.
Ans : The four advantages of Self-Help Groups for

the poor are:
a. When the group is regular in saving for a year or

two then the group is eligible for getting loan from
the bank.
b. Bank provide loan in the name of the group and

then the SHG gives loan to its members at very
low rate of interest.
c. Loan matter is taken very seriously, as if any one

member is not able to repay the loan then it is
followed by other members and because of this
feature, they get loan from the bank even though
they have no collateral.
Ans :
d. Loan is provided to help them to create self-

employment opportunities.
e. SHG helps women in making them financially self

reliant and provides platform to discuss and act on
a variety of social issues.
Define Collateral. Why do lenders ask for
collateral while lending?
Collateral is an asset that the borrower owns (such

as land, building, vehicle, livestocks, deposits with
banks) & uses this as a guarantee to a lender until
the loan is repaid.
Lenders ask for collateral while lending because:
- In case a borrower fails to repay the debt, the

collateral can be used to generate the amount
that borrower owes.
- Hence, collateral is a legal guarantee that the

debtor will repay the money by all means.
Explain the term debt-trap. Why is it more
rampant in rural areas? Give two reasons.
A debt trap is a situation in which a borrower is led

into a cycle of re-borrowing because they are unable
to repay the loan.
It is more common in rural areas because:
● A borrower repays a loan by selling the

agricultural produce, which sometimes may not
be enough to repay the loan.
● Rural borrowers normally depend on informal

sources of credit who charge a high rate of
interest. This repayment of larger amounts may
sometimes be larger than their income.
Why poor household are still dependent on
informal sources of credit ?
Lack of banks in rural areas.
Even when they are present, getting a loan

from a bank is much more difficult.
Absence of collateral in informal sector

makes the process even more easier.
WHAT IS GRAMEEN BANK? WHO MADE IT
AND IN WHICH NATION?
● One of the biggest success stories in

reaching the poor to meet their credit
needs at reasonable rates.
● Started- 1970 & meets the credit needs

of over 9 million people.
● Professor Muhammad Yunus- Founder

of Grameen Bank & recipient of 2006
Nobel Prize for Peace.
Read the given text and answer the following questions:
The Reserve Bank of India supervises the functioning of formal sources of loans. For
instance, we have seen that the banks maintain a minimum cash balance out of the
deposits they receive. The RBI monitors the banks in actually maintaining cash balance.
Similarly, the RBI sees that the banks give loans not just to profit-making businesses and
traders but also to small cultivators, small scale industries, to small borrowers etc.
Periodically, banks have to submit information to the RBI on how much they are lending, to
whom, at what interest rate, etc.
There is no organisation which supervises the credit activities of lenders in the informal
sector. They can lend at whatever interest rate they choose. There is no one to stop them
from using unfair means to get their money back.
Compared to the formal lenders, most of the informal lenders charge a much higher
interest on loans. Thus, the cost to the borrower of informal loans is much higher.
1. Why is the supervision of the functioning of formal
sources of loans necessary?
Supervision of the functioning of formal sources of

loans is necessary because banks have to submit
information to the RBI on how much they are lending,
to whom they are lending and at what interest rate etc.
2. Compare formal sector loans with informal sector of

loans regarding interest only.
The formal sector charge low rate of interest and

the mode of repayment is easy, whereas, the
informal sector charge higher rate of interest and
the mode of repayment is very harsh.
3. What are the two categories of sources of
credit? Mention any one features of each.
The two categories of sources of credit are:
● Formal sources of credit: Reserve Bank of India

supervises the functioning of formal sources of
credit.
● Informal sources of credit: There is no

organisation to supervise the functioning of
informal sources of credit.
GLOBALISATION AND
THE INDIAN ECONOMY
Globalisation is this process of rapid integration or
interconnection between countries.
MNCs play major role in the globalisation process.
Multinational Corporation or MNC is a company that owns or controls

production in more than one nation.
● Set up offices & factories for production in regions where they can
get cheap labour & other resources.
● Aim- Low cost of production & greater profits.
CONDITIONS REQUIRED TO SET UP MNCs
● Closeness to Market
● Cheap skilled & unskilled labour
● Favourable government policies

Foreign trade: The process of buying and selling
goods and services between two or more than two
countries.
Foreign investment: It involves capital flows from one

country to another, granting extensive ownership
stakes in domestic companies and assets.
INTERLINKING PRODUCTION ACROSS COUNTRIES
● By setting up partnerships with local companies,

by using the local companies for supplies, by
closely competing with the local companies or
buying them up.
● By buying up local companies. Eg. Parakh foods

got bought by Cargill foods, an American MNC.
● By placing orders for production with small

producers in developing/underdeveloped
economies.
IMPACT OF GLOBALISATION
CONSUMERS:
● Globalisation & competition among producers, local &

foreign has been advantageous for consumers.
● They have greater choice of products with improved

quality & lower prices.
FACTORS THAT HAVE ENABLED
● Resultantly, people enjoy high standard of living that was
GLOBALISATION
not possible before.
MNCS:
● Increased their investment in India over the past 20 years.

Meaningly, investing in India is beneficial for them.
● Invested in industries such as automobiles, electronics,

soft drink, etc. or services such as banking in urban areas.
● New jobs have been created in these industries.
● Local companies supplying raw materials have also

prospered.
● WTO- is an organisation whose aim is to liberalise
international trade.
● Who started WTO?

Developed countries in 1 January 1995
● WTO establishes- rules regarding international trade,

& sees that these rules are obeyed.
● Total number of member countries- 164. India joined

WTO- 1 January 1995.
GLOBALISATION & SMALL PRODUCERS
● For small producers globalisation pose serious

challenge of either to compete or perish.
● Industries like batteries, plastics, toys, dairy

products & vegetable oil are some examples
which have been hit hard due to competition.
● Many have shut down making workers jobless.

COMPETITION & UNCERTAIN EMPLOYMENT
● Globalisation have substantially impacted the workers

life.
No job security- Now workers are employed flexibly.
● Labour ARE HIRED on temporary basis to avoid giving

them wages for full year.
● Workers are made to work long hours than usual such

as night shifts on regular basis during the peak
season.
● While MNCs make huge profits, workers are denied

their fair share and job security.
SEZ’s : Step to attract foreign
investment
1. Industrial zones,
called Special
Economic Zones
(SEZs), are being
set up.
2. Have world class 3. Companies who

facilities: electricity, set up production
water, roads, transport, units in the SEZs do
storage, recreational not have to pay
and educational taxes for an initial
facilities period of 5 years.
FAIR GLOBALISATION : Some possible steps that
government can take:
● It can ensure that labour laws are properly implemented and

workers get their right.
● It can support small producers initially to expand their business

till they get in competing stage.
● Trade and investment barriers can be used to create a check.
● It can negotiate at WTO for fairer rules. Govt. can collaborate

with other developing countries to tackle dominated of
developed countries in WTO.
Ques : Which of the following statements are true about MNCs?
(a) A MNC is a company that owns or controls production in more

than one nation.
(b) MNCs set up offices and factories for production in regions

where they can get cheap labour and other resources.
(c) This is done so that the cost of production is low and the MNCs
can earn greater profits.
(d) All of the above

Assertion : Due to foreign trade, producers in different
countries closely compete with each other.
Reason : Foreign trade leads to similar prices of good

across boundaries, and the producers who do not offer
competitive prices may lose the market share.



Assertion : A tax on imports makes the market for
imported goods lucrative in terms of earning higher
profits.
Reason : Taxes are imposed to ensure smooth trade

between nations and higher tax revenues for the
governments of the countries.



Assertion : Local businesses may set up joint production process
with MNCs and earn higher profits.
Reason : MNCs can provide money for additional investments,

like buying new machines for faster production



Ques : Give the meaning of WTO. Mention
any two.
Ans : WTO means World Trade Organisation.
The two shortcomings of the WTO are:

a. WTO favours developed nations in its trade
policies.
b. Lack of transparency : decision making is

dominated by few countries.
c. Forces developing countries to liberalise their

economies more, which further affects the domestic
producers of that country.
Ques : How is the government of India trying to attract more foreign
investment? Explain with examples.
Ans : The government of India trying to attract more foreign investment

through the following ways:
a. SEZ (Special Economic Zone): Governments are

creating SEZs where they provide world class
facilities for electricity, roads, water, transport,
recreational and educational facilities. MNCs will
not have to pay taxes for the initial period of five
years if they set up their production units in the
SEZs.
b. Flexibility in Labour Laws: Governments has given the permission to

the MNCs to hire the workers flexibly i.e., hiring the workers on temporary
basis and also ignoring the labour laws. This will help the MNCs in
reducing their labour cost and the total cost of production.
Ques : Explain the role of MNCs in the globalisation process.
Ans : Globalisation can defined as the process of rapid

interconnection or integration between the markets.
MNCs play a vital role in promoting globalisation

process as:
a. By producing goods and services at global level.

b. Goods and services are sold at global level.
c. Investments, technology and people are moving
between countries.
d. It gives opportunity to the local producers to
reach beyond the domestic market.
e. MNCs by the foreign trade connects/ integrates
the markets in the world.
Ques : What is a trade barrier? Why did the Indian
government put trade barriers after independence?
Explain.
Ans : Restrictions set by the government to increase or

decrease (regulate) the foreign trade is what called trade
barrier.
Due to the following reasons the Indian government

put barriers to foreign trade and foreign investment
after independence:
a. The Indian government wanted the domestic
producers to face the global competition.
b. By this competition the Indian producers will also

get a chance to improve their quality.
c. Removal of trade barriers will allow the producers

of different countries to trade with India.
Read the given text and answer the following questions:
EXTRACT 1:
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine
is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the
magazine from the office in London using telecommunication facilities. The designing is done on a computer.
After printing, the magazines are sent by air to London. Even the payment of money for designing and printing
from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!
EXTRACT 2:
The agriculture sector provides the bulk of employment and a significant portion of the GDP in India. Compare
this to a developed country such as the US with the share of agriculture in GDP at 1% and, its share in total
employment a tiny 0.5%. And, yet this very small percentage of people who are engaged in agriculture in the US
receive massive sums of money from the US government for production and for exports to other countries. Due
to this massive money that they receive, US farmers can sell the farm products at abnormally low prices. The
surplus farm products are sold in other country markets at low prices, adversely affecting farmers in these
countries. Developing countries are, therefore, asking the developed country governments, “We have reduced
trade barriers as per WTO rules. But you have ignored the rules of WTO and have continued to pay your farmers
vast sums of money. You have asked our governments to stop supporting our farmers, but you are doing so
yourselves. Is this free and fair trade?”
1. Analyse the role of Information Technology in
globalisation by giving three reasons
- IT enables the quick transfer of data and ideas

globally.
- IT plays a major role beyond national

boundaries.
- IT has made financial transaction very easy

across the globe.
2. Name an institution which has an aim to liberalise

the international trade
WTO
3. How far has the institution responsible for free
and fair trade succeeded in its aim? Explain by
giving two reasons.
WTO established rules regarding international trade

and sees that these rules are followed. But, in practice
it is seen that the developed countries don’t follow
WTO rules and retain trade barriers, whereas on the
other hand developing countries are forced to remove
trade barriers.

Economics Class 10 Marathon

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Economics Class 10 Marathon

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QUICK ECONOMICS RECAP

MOST REPEATED PREVIOUS YEAR BOARD

MULTIPLE CHOICE QUESTIONS

❏ People always seek a mix of goals.

Category of Person Developmental Goals / Aspirations

Landless rural More days of work and better wages.

Prosperous farmers Assured a high family income through

Urban unemployed Regular jobs, better wages, social

A girl from a rich She gets as much freedom as her brother

An adivasi from Better wages and living conditions,

MATERIALISTIC GOALS - that can be bought

NON-MATERIALISTIC GOALS - that can not

Unequal distribution of Income

Ignores Social aspect of life.

Countries with per capita income of US$ 12,056

Countries with per capita income of US$ 955 or

India comes in the category of low middle

Highest in the respective category

Those basic facilities that government

1. Ideal weight of 14 years Girl: 18.5 and

2. Ideal weight of 14 years Boy : 18.5 and

Useful method to measure development

HDR published by UNDP (United Nations

Compares countries based on the

India occupies 131 Rank as per 2019

● Development that meets the needs of the

● Need for sustainable development :

- Over-exploitation will deplete these

Ques : Per capita income is:

(a) income per person

a) Money cannot buy you a pollution-free

b) Money cannot ensure that you get

c) Money may also not be able to protect you

d) All of the above.

A. Country 1 and more rich people than country B

B. Country B are more rich people than country B

C. Country A and more equitable distribution of money

(a) BMI body mass index

A. Groundwater is a nonrenewable resource

B. Groundwater is a renewable resource

C. Humans have been exploiting groundwater

Reason : More than half of the students are

(a) Both assertion and reason are true and reason is

(b) Both assertion and reason are true but reason is

(c) Assertion is true but reason is false

(d) Both assertion & reason are false.

Reason : The capitalist approach to development

(a) Both assertion and reason are true and reason is

(b) Both assertion and reason are true but reason is

(c) Assertion is true but reason is false

(d) Both assertion & reason are false.

Reason : Average income does not cover

(a) Both assertion and reason are true and reason is

(b) Both assertion and reason are true but reason is

(c) Assertion is true but reason is false

(d) Both assertion & reason are false.

Ques : Which state has the highest infant

Ans : Bihar has the highest infant mortality

Ques : Why does this state have the highest

Ans : Due to the following two reasons, Bihar

Ans : Diﬀerent people have diﬀerent developmental

● Industrialists may want more dams to get

● A farmers wants to sell food grains at a

● More wages means development for a worker,