Q.1: Choose the Correct Options: (1X10=10Mks)

Q.1: Choose the correct options: (1x10=10mks)

1. The consumer is a King in the

a. Socialist b. Capitalist

c. Mixed Economy d. None of the above

2. Resources are

a. Limited b. Scarce

c. Abundant d. Limited and scare

3. The goods which help in production of other goods are called

a.Consumer goods b. Producer goods

c. Private goods d.Public goods

4. Human Development Index measures

a. Life expectancy b. Adult literacy

c. Years of schooling d. All a,b and c

5. Rent is paid for the use of

a. Land b.Labour

c. Capital d.Entrepreneurship

6. Which of the following is a characteristic of goods?

a. Goods cannot be transferred

b. Goods can be seen and touched

c. There is no time gap between the production and consumption of goods

d. Goods cannot be stored

7. Which of the following is a normative statement?

a. Indian economy is a mixed economy.

b. The number of poor people in India is very large.

c. Poor people are facing difficulty due to rise in price of essential commodities.

d.Government should give more importance to education.

8. Which of the following is a characteristic of mixed economy?

a. Social welfare objectives.

b. Collective ownership of means of production.

c. Co-existence of public and private sectors.

d. Profit motive.

9. Which of the following is not an individual want?

a. Pressure cooker b. Gas stove

c. Bridges d. T.V

10. Which of the following is not an economic service?

a. Beauty salon b. Doctors treatment

c. Cooking by mother d. Tuitions

Q.2: Answer the following questions in 40-60 words each: (2x10=20mks)

1. Define want. Give one example.

2. Give the full form of HDI. What is it based on?

3. Give two examples each of public and private goods.

4. What is the Indian Philosophy of wants?

5. Give two examples of free goods used by you in daily life and justify why they are
called free goods?

6. Name the three ‘Central problems of an economy’. Give example.

7. ‘Wants change and expand with development’. Explain with the help of an example.

8. What are intermediate goods?

9. Why is economics known as ‘a science of welfare’?

10. Name the two branches of economics.

Q.3: Answer the following in brief: (3x10=30mks)

1. Distinguish between Positive and Normative economics.

2. State any 3 characteristics of wants.

3. Write any 3 important economic factors.

4. Economics is science of scarcity and choice. Explain.

5. Distinguish between Economic growth and Economic development.

6. Distinguish between goods and services.

7. What do you understand by the term ‘Consumers Sovereignty’? In which type of
economy does it exist?

8. Why are present wants more important than future wants? Give suitable examples.

9. Give 3 examples showing conversion of desires into want.

10. How does a developed economy differ from a developing economy? Give examples.

Q.4: Answer in detail: (Any 4) (5X4=20mks)

1. What are the main functions of an entrepreneur?

2. How does production facilitate consumption and capital formation?

3. Name and explain the factors of production giving examples of each.

4. Mention the three economic activities and show their inter-relationship diagrammatically.

5. What is a barter system? Explain any 4 demerits of barter system.

Shweta Bora PT 1/Economics/NIOS/2017-18Page 1 of 2