MP Board Class 10th Social Science Chapter 20 Economic System Solutions

In this article, we will share MP Board Class 10th Social Science Book Solutions Chapter 20 Economic System Pdf.

MP Board Class 10th Social Science Solutions Chapter 20 Economic System

Objective Type Questions

Question 1. Multiple Choice Questions
(Choose the correct answer from the following)

Question (i)
End of monopoly is possible only in –
(a) Capitalism
(b) Socialism
(c) Mixed economy
(d) Dictatorship.
Answer:
(b) Socialism

Question (ii)
Individual freedom does not exist in –
(a) Capitalism
(b) Socialism
(c) Democracy
(d) Oligocrucy.
Answer:
(b) Socialism

Question (iii)
Social Security is the reality of –
(a) Socialist
(b) Capitalists
(c) Mixed economists
(d) Diarchy.
Answer:
(c) Mixed economists

Question (iv)
Fear of nationalisation is the demerit of –
(a) Mixed economy
(b) Socialist economy
(c) Capitalist economy
(d) Democratic economy.
Answer:
(a) Mixed economy

Question 2. Fill in the blanks:

  1. People who have capacity to purchase the goods is called the system of ……………..
  2. Market economy is the synonyms of ……………..
  3. Indian economy is based on the system of ………………

Answer:

  1. Capitalism
  2. Capitalistic economy
  3. Mixed economy

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Question 3. True and False type questions:

  1. Social paraulism is the reality of capitalism.
  2. Labour is needed for living in socialism.
  3. Human welfare is neglected in socialistic economy.
  4. Das Capital is the book of Lenin.

Answer:

  1. True
  2. True
  3. False
  4. False.

Question 4. Match the following:

  1. Trade Cycle (a) No intervention of government
  2. Automatic system (b) Totally free from government intervention
  3. Laissez fair economy (c) A group of institution
  4. Economic System (d) Repetition of inflation

Answer:

1. (d)
2. (a)
3. (b)
4. (c).

Answer in One – Two Words or One Sentence:

Question 1.
What are the challenges of mixed economy?
Answer:
Poverty unemployment and inflation.

Question 2.
What is capital?
Answer:
Capital is that part of money which a capitalist or an industrialist invests for setting up some industry/factory (or mill) for producing different goods or articles.

Question 3.
What is mixed economy?
Answer:
An economy, wherein both public and private sectors coexit is known as mixed economy.

Question 4.
What is capitalistic economy?
Answer:
An economy, wherein individuals are free to earn, own and control their earnings without government interference is known as capitalistic economy.

Question 5.
What is socialistic economy?
Answer:
An economy which is owned, managed and controlled by the government is known as socialistic economy.

Question 6.
What is the capitalist economy called?
Answer:
Capitalist economy is also known as free market economy.

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Question 7.
What is the other name of socialist economy?
Answer:
Centrally planned economy.

Question 8.
Mention three examples of capitalist economy?
Answer:
United States of America, United Kingdom and Japan.

Question 9.
What is meant by the policy of protection?
Answer:
It means giving some Special protection to the newborn industries just to save them from the stiff competition.

Question 10.
What do you mean by the term ‘individualism’?
Answer:
It means that individual is supreme and the state and society exist only for his welfare. Minimum restriction should be put in his ways. Only in a free atmosphere he can show his best.

MP Board Class 10th Social Science Chapter 20 Very Short Answer Type Questions

Question 1.
What is the meaning of “Laissez Faire”?
Answer:
Laissez Faire is a theory of economics which favours a policy of non-interference in the sphere of industry and business. Adam Smith outlined this theory in 1776. He supported the idea that the Government should neither impose any taxes on imports nor pass any law to regulate the trade and commerce within the country.

Question 2.
Mention the types of economy based upon ownership?
Answer:

  1. Capitalistic economy.
  2. Socialistic economy.
  3. Mixed economy.

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Question 3.
What is the basic difference of the capitalism, socialism and mixed economic system?
Answer:
Three types of economic systems are mainly found in the world such as capitalism, socialism and mixed economy. The basic difference between these three systems is who is the owner of the factors of production and how these factors are used.

MP Board Class 10th Social Science Chapter 20 Short Answer Type Questions

Question 1.
What is capital economic system?
Answer:
In several countries of the world as America, England, France, Italy, Japan, Australia the capitalist economy exists. Capitalist economy is known by several names, as market economy, laissez fair or open economy, unplanned economy etc. Capitalism has been defined in many ways. According to Prof. Loucks and Hoots, ‘Capitalism is a system of economic organisation featured by the private ownership and the use for private profit of man made and nature made capital.’

Question 2.
State briefly the main features of socialist economy?
Answer:
Features of socialist economy:

  1. Government is the sole producer of goods and services.
  2. All properties belong to the government.
  3. Economic decision are taken by the central planning authority.
  4. Prices of good and services are determined by the government.

Question 3.
What are the merits and demerits of socialism?
Answer:
Merits of Socialism:

  1. Elimination of class struggle.
  2. Better allocation of resources.
  3. Reduction in inequalities of income.
  4. Economic stability.

Demerits of Socialism:

  1. Loss of efficiency and productivity.
  2. Burden of administration.
  3. Loss of consumer’s preferences.
  4. Loss of incentives.

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Question 4.
What are the merits and demertis of mixed economy?
Answer:
Merits of Mixed Economy:

  1. Social welfare and economic equalities.
  2. Efficient use of resources and rapid economic development.
  3. Private property.
  4. Freedom.

Demerits of Mixed Economy:

  1. Instability.
  2. Economic fluctuations.
  3. Inefficient operations.
MP Board Class 10th Social Science Chapter 20 Long Answer Type Questions

Question 1.
Describe the merits and demerits of socialism in detail?
Answer:
Merits of socialist economic system:
Following are the main merits of a socialist economy system.

1. Optimum utilization of resource:
Due to the central planning in socialist system the optimum use of the factors of production becomes possible. The resources, by planning are shifted from the areas of less productivity to the areas having more productivity. Along with this the economic activities of the different sectors of the economy are coordinated. It makes the utilization of factors optimum.

2. Economic stability:
Due to central planning in socialist system between the areas of consumption and production both mutual coordination is found. Therefore the situation of excessive production or less production does not exist. As a result of this economic stability is maintained in the economy.

3. Economic equality:
In the socialistic system there is no place for private property, laws of inheritance and tendency of earning profit. Property and factors are owned by the state. The job is given to people with their ability and efficiency. So economic equality is found in it.

4. End of class conflict:
Due to the ownership of the government on the factors of production in socialism, division of society on the basis of property and wealth is not found. In it, there exists only one class i.e. labour class. Therefore there is no possibility of class conflict.

Demerits of socialism:
Following are the main demerits of socialism:

1. End of consumer’s sovereignty:
In socialist system a consumer cannot consume things of his choice. Under this system a consumer has to consume only those goods and only in that quantity, which the state provides them. Therefore, consumer’s sovereignty ends in the society.

2. Centralization of power:
In the socialist economic system powers are centralised because all the economic activities are conducted by the government. The orders of the government are implimented at all levels. Therefore in this system the power is centralized completely in the hands of government, and there is no space left for individual freedom.

3. Lack of motivation for production work:
In socialism all the production work is controlled by the government and individual freedom has no place in it. In such a situation the labours are not motivated to do more work. It does not motivate for new inventions, research work and techniques of production.

4. Lack of individual freedom:
In socialist economy all the important functions such as quantity of production, basis of distribution, prices of the commodities, etc. are done by the government. In this system there is no place for desire of an individual.

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Question 2.
Discuss the merits and demerits of mixed economy in detail?
Answer:
Merits of mixed economy:
Following are the main merits of mixed economy:

1. Rapid economic growth:
In this system private and public both the sectors work together and try to increase the growth rate of the economy. The resources are allocated in optimum proportion to the various sections of economy by adopting economic planning. In this way the rate of economic development is increased by the optimum utilization of the resources.

2. Check on centralization and monopoly:
In a mixed economy private and public both the sectors are under the complete control of the government. The government controls the activities of’private sector, keeping in the mind the social interest of the society. Along with this efforts are made to terminate monopoly by nationalizing the areas necessary for public welfare.

3. Presence of freedom and motivation:
In the mixed economy the producers and individuals’ get motivated for work due to the rights of personal profit and ownership. In this system consumers have enough freedom to earn their income and to spend it.

4. Increase in Social Welfare:
In this system total economy is controlled and directed, by the government keeping in the mind the objective of social welfare. The government itself operates welfare policies.

Demerits of mixed economy:
Following are the main demerits of mixed economy.

1. Inefficiency:
In mixed  economy the demerits of capitalism and socialism both exist. In this system neither planning mechanism can work properly nor market mechanism can be activated. This spreads inefficiency in the economy.

2. No encouragement to private sector:
In this system government gives more importance to public sector. As a result the private sector is neglected. Government policies and officers also are not in favour of private sector. Therefore the private sector do not develop properly.

3. Inflow of foreign capital:
The government invites foreign capital for the expansion of public sector. This increases the influence of foreign powers. Foreign powers influence the political system of the country also.

4. Lack of practicability:
In mixed economy private and public sectors both work together. Thereby the policies, which are beneficial to one sector, may be harmful to the other sector. Due to lack of co – ordination private and public sectors compete with each other. As a result this affect the economy inversely.

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