Economics Chapter 1

THE PRESIDENTIAL SCHOOL

VISAKHAPATNA

GRADE 10 CBSE ECONOMICS CH-1,2,3

I. MULTIPLE CHOICE QUESTIONS

1. Human Development Report is published by

(a) UNDP
(b) World Bank
(c) IMF
(d) WHO

Answer: (a) UNDP

2. India’s HDI rank in the world is:

(a) 125
(b) 115
(c) 126
(d) 134

Answer: (c) 126

3. What will be the top priority in the developmental goal of a landless labourer?
(a) Expansion of rural banking
(b) More days of work and better wages
(c) Metal roads for transportation
(d) Establishment of a high school

Answer: (b) More days of work and better wages

4. What was the literacy rate in Kerala in 2011?

(a) 82
(b) 94
(c) 62
(d) 50

Answer: (b) 94

5. Life expectancy at birth means:

(a) average expected length of life of a person at the time of birth
(b) average expected length of life of a person at the time of death
(c) average expected length of a child at the time of birth
(d) None of the above

Answer: (a) average expected length of life of a person at the time of birth

6. What will be the aspiration of an educated urban unemployed youth?

(a) An educated urban unemployed youth will aspire for better opportunities in
agriculture.
(b) Support from government at every step in life for his upward movement.
(c) An urban educated unemployed will aspire for good job opportunities where his
education can be made use of.
(d) Better facilities of recreation for his leisure time.

Answer: (c) An urban educated unemployed will aspire for good job opportunities
where his education can be made use of.

7. Which of the following is the most important component for comparing different
countries?
(a) Population
(b) Income
(c) Per capita income
(d) Resources

Answer: (c) Per capita income

8. Which one of the following is the most important attribute while comparing the
level of development of various countries?
(a) Population
(b) Social status of the people
(c) Political status
(d) Per capita income

Answer: (b) Social status of the people

9. Pick out the correct meaning listed below to define ‘average income’.
(a) Average income of the country means the total income of the country.
(b) The average income in a country is the income of only employed people.
(c) The average income is the same as per capita income.
(d) The average income includes the value of property held.

Answer: (c) The average income is the same as per capita income.
10. In which state of India is the infant mortality rate lowest?
(a) Goa
(b) Bihar
(c) Uttar Pradesh
(d) Kerala

Answer: (a) Goa

11. Which one among the following is a developmental goal for the landless rural
labourers?
(a) To get electricity and water
(b) To educate their children
(c) More days of work and better wages
(d) To shift to the cities

Answer: (c) More days of work and better wages

12. Which country can be considered as a developed country in the modern world?
Select your answer from the following statements.
(a) Countries which have accumulated huge amount of wealth and always
secures the future of their citizens. These countries are considered to be developed.
(b) Countries which are among the highest in the ‘Human Development Index’ are
considered to be the developed countries.
(c) Only rich countries are considered to be developed because people have
money to buy everything needed for human beings—both material and non-
material.
(d) Iran is a rich country and therefore it is a developed country.

Answer: (b) Countries which are among the highest in the ‘Human Development
Index’ are considered to be the developed countries.

13. Which of the following countries has higher HDI rank than India?
(a) Sri Lanka
(b) Nepal
(c) Bangladesh
(d) Pakistan

Answer: (a) Sri Lanka

14. Underemployment occurs when people:

(a) do not want to work
(b) are working in a lazy manner
(c) are working less than what they are capable of doing
 (d) are not paid for their work

Answer: (c) are working less than what they are capable of doing

15. Money cannot buy all the goods and services that we may need to have a good
life. A list of things required for a good life is given below. Which among the
following are things money cannot buy?
(i) Full protection from infectious diseases
(ii) High quality education
(in) A luxury home
(iv) A pollution-free atmosphere in every part of the country
(a) (i) and(ii)
(b) (ii) and (iii)
(c) (i), (ii) and (in)
(d) (i) and (iv)

Answer: (d) (i) and (iv)

16. How do big private companies contribute in the development of a nation?

(a) By increasing the demands for their products through advertisements.
(b) By increasing their profits.
(c) By increasing productivity of the country in the manufacturing of industrial goods.
(d) By providing private hospital facilities for the rich.

Answer: (c) By increasing productivity of the country in the manufacturing of industrial

goods.

17. NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed ………. days
of employment in a year in many districts of India. What are the correct number of days?
(a) 200 days
(b) 100 days
(c) 30 days
(d) 60 days

Answer: (b) 100 days

18. Which sector has emerged as the largest producing sector in India. Select one from
the following alternatives:
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Science and Technology sector

Answer: (b) Tertiary sector

19. Choose one correct statement from the following:

Underemployment occurs —
(a) when people are not willing to work.
(b) when people are working slowly.
(c) when people are working less than what they are capable of doing.
(d) when people are not paid for their jobs.

Answer: (c) when people are working less than what they are capable of doing.

20. Which of the following examples does not fall under unorganized sector?
(a) A farmer irrigating his field.
(b) A daily wage labourer working for a contractor.
(c) A doctor in a hospital treating a patient.
(d) A handloom weaver working on a loom in her house.

Answer: (c) A doctor in a hospital treating a patient.

21. Employment figures of a country are based on data collected from 5-yearly survey on
employment and unemployment. Which organisation conducts this survey?
(a) NSSO – National Sample Survey Organisation
(b) NREGA 2005 – National Rural Employment Guarantee Act, 2005
(c) ILO – International Labour Organisation
(d) Census of India

Answer: (b) NREGA 2005 – National Rural Employment Guarantee Act, 2005

22. Which of the following economic activity does not come under the primary sector?
(a) Fishing
(b) Farming
(c) Mining
(d) Banking

Answer: (d) Banking

23. Which of the following activities is not the activity of Primary Sector?
(a) Milking
(b) Fishing
(c) Making of sugar
(d) Farming

Answer: (c) Making of sugar

24. What is meant by GDP?

(a) Gross Dairy Product
(b) Gross Domestic Product
(c) Great Development Project
(d) Great Domestic Product

Answer: (b) Gross Domestic Product

25. Agriculture, dairy farming are activities belonging to which of the following sectors?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Scientific technology

What do the banks do with the deposits which I they accept from the customers?

(a) Banks use these deposits for charitable activities.

(b) Banks use a major portion of deposits to extend loans.

© Banks use deposits to give bonus to their employees.

(d) Banks use deposits to set up more branches in the country.

Answer: (b) Banks use a major portion of deposits to extend loans.

26. System of exchanging goods for goods is called :

(a) monetary system

(b) credit system

© barter system

(d) exchange system

Answer: © barter system

27.Which of the following is the main informal source of credit for rural households in
India?

(a) Friends

(b) Relatives

© Landlords

(d) Moneylenders

Answer: (d) Moneylenders

28.What is the main source of income of a bank?

(a) Bank charges that the depositors pay for ; keeping their money safe is the main ;
source of the bank’s income.

(b) The difference between what is charged from the borrowers and paid to the
depositors is the main source of bank’s income.

© Banks earn huge amounts of money by investing the money of the depositors in
various company shares.

(d) The Government of India gives huge amounts of money to the banks to help their
smooth functioning.

Answer: (b) The difference between what is charged from the borrowers and paid to the
depositors is the main source of bank’s income.

29. At present which form of money is increasingly used apart from paper money?

(a) Commodity money

(b) Metallic money

© Plastic money

(d) All the above

Answer: © Plastic money

30.Name the system in which the double coincidence of wants is an essential feature.

(a) Barter system

(b) Money economy

© Global economy

(d) None of these

Answer: (a) Barter system

31.An agreement in which the lender supplies the borrower with money, goods or services
in return for the promise of future payment refers to

(a) Debt

(b) Deposit

© Credit

(d) Collateral

Answer: © Credit

32. The part of the total deposits which a bank keeps with itself in cash is

(a) zero

(b) a small proportion

© a big proportion

(d) 100 percent

Answer: (b) a small proportion

33. Grameen Bank of Bangladesh was started in

(a) 1960s

(b) 1970s

© 1980s
(d) 1990s

Answer: (b) 1970s

34. Which body (authority) supervises the functioning of formal sources of loans?

(a) Finance Ministry

(b) Head Office of each Bank

© Reserve Bank

(d) Cooperative Societies

Answer: © Reserve Bank

35.Terms of credit are with respect to :

(a) interest rate

(b) collateral

© documentation

(d) All of the above

Answer: (d) All of the above

36. In a SHG, most of the decisions regarding loan activities are taken by

(a) Banks

(b) Members

© Non-government organisation

(d) Cooperative

Answer: (b) Members

37.Money-lenders usually demand a ‘security’ from the borrower. What is the formal
word used for the ‘security’, such as land, vehicle, livestock, building, etc.?

(a) Deposit

(b) Collateral

© Credit

(d) Guarantee

38.. Which among these is an essential feature of barter system?

(a) Money can easily exchange any commodity

(b) It is based on double co-incidence of wants

© It is generally accepted as a medium of exchange of goods with money

(d) It acts as a measure and store of value

Answer: (b) It is based on double co-incidence of wants

39. Which one of the following is the main source of credit for the rich households?

(a) Informal

(b) Formal

© Both formal and informal

(d) Neither Formal nor informal

Answer: (b) Formal

40. Which one of the following is not a modern form of money?

(a) Demand Deposits

(b) Paper currency

© Coins

(d) Precious metals

Answer

Answer: (d) Precious metals