Table of Contents
Introduction of Lesson: 1 Economics-An Introduction 2023-24 of class 10 Pseb solution
The study of economics is an essential aspect of understanding how societies function and make decisions about the allocation of resources. In the academic year 2023-24, the Punjab School Education Board (PSEB) has introduced a comprehensive solution for the first lesson of economics, titled “An Introduction.” This lesson aims to provide students with a foundational understanding of the subject, laying the groundwork for their future studies in economics. Through this pseb solution, students will explore key concepts such as scarcity, choice, opportunity cost, and the role of incentives in decision-making. They will also delve into the basic principles of microeconomics and macroeconomics, gaining insights into how individuals, businesses, and governments interact within an economy. The PSEB solution class 10 for Lesson 1 Economics-An Introduction in the academic year 2023-24 will equip students with the necessary knowledge and skills to navigate the complexities of the economic world and make informed decisions in their personal and professional lives.
Subject: Social Studies , Class: 10th (Economics), Lesson: 1 Economics-An Introduction
PSEB SOLUTION OF CH 1 Fill in the blanks:
(i) The word Economics has been taken from Greek language.
(ii) The Greek language word for Micro economics is MICROS.
(iii) Consumption is related to use various goods and services.
(iv) The word Inflation has been taken from the INFLATE word.
(v) The government budget is presented every year in the parliament on February.
(vi) Fiscal Policy is the policy related with income and expenditure of the Government.
PSEB SOLUTION CLASS 10 CH 1 Multiple Choice Questions:
(i) Wealth definition of Economics was given by:
(a) Alfred Marshall (b) Adam smith
(c) A.C. Pigou (d) Samuelson
Ans: Adam smith
(ii) Material welfare Definition of Economics was given by:
(a) Alfred Marshall (b) Adam Smith
(c) A.C. Pigou (d) Samuelson
Ans: Alfred Marshall
(iii) What are the various sources of Public Debt?
(a) Internal Sources (b) External Sources
(c) Both a and b (d) None of these
Ans: Both a and b
(iv) Balance of Payment is related with:
(a) Open Economy (b) Closed Economy
(c)Private Economy (d) Free Economy
Ans: Open Economy
(v) Monetary policy of the Government deals with:
(a) Income of the government (b) Expenditure of the government
(c) Demand and Supply of Money (d) Balance of Payment
Ans: Demand and Supply of Money
PSEB SOLUTION True/False Type Questions:-
(i) Micro Economics deals with the study of the whole economy. (False)
(ii)The word Macro Economics is taken from the Greek word MACROS. (False)
(iii) Supply of Money is a stock variable. (True)
(iv) Deficit financing is the process of printing new currency notes by the Govemnent. (True)
(v) Saving is that part of income which is not spent. (True)
PSEB solution SST ECONOMICS L1 Very Short Answer Type questions
Answer to these questions should be given in one word or in one sentence.
(i) What do you mean by Economics?
Ans:- Economics means a subject which deals with household management. It deals with how an individual or the state can use their limited resources, which have alternative uses in an efficient manner in order to maximize the individual or social welfare.
(ii)What do you mean by scarcity?
Ans:- Scarcity means that the demand for a good or service is greater than its availability.
(iii)What do you mean by Micro Economics?
Ans: Micro Economics deals with the study of economic activities at small level i.e. the economic activities of an individual or a household.
(iv)What do you mean by Macro Economics?
Ans: Macro Economics deals with the study of various economic activities at large scale or atnthe level of an economy as a whole.
(v) What is consumption?
Ans: Consumption means to use various types of goods and services in our daily life for the direct satisfaction of our wants.
(vi)Who is a consumer?
Ans: Consumers means those people who buy or use goods and services to fulfill their needs.
(vii)What is an investment?
Ans: Investment means increase in the stock of capital in any given time period which is
generally taken as one year.
(viii)What is meant by saving?
Ans: Saving is that part of income which is not spent.
(ix) Define Inflation.
Ans: Inflation is defined as a continuous rise in prices of goods and services in the economy for a fairly long period of time.
(x) Define supply of money.
Ans: Supply of money refers to the total stock of money (in the form of currency notes and coins) held by the people of an economy at a particular point of time.
(xi) Define government budget.
Ans: A government budget is a financial statement showing item-wise expected receipts and expenditures of the government during a particular financial year.
(xii) List some of the sources of government’s income.
Ans: Government earns its income from various tax and non-tax sources. Tax sources of the government include Goods and Services Tax (GST), Income tax, Excise duty etc. Non-tax sources of the government include various types of fees, fines, donations etc.
(xiii) List some of the items of government’s expenditure.
Ans:- Government expenditure is primarily done on defence of the country, police, schools, hospitals, roads, electricity, administration, development of various sectors like agriculture, industry, service, social welfare i.e. providing various types of subsidies, pension, scholarships to themstudents, economic planning, development of infrastructure for the development of urban and rural areas, etc.
(xiv) What do you mean by deficit financing?
Ans: Deficit financing is the policy of printing new notes by the RBI in order to provide money to the government to solve the problem of deficit budget.
(xv) What do you mean by public finance?
Ans: Public Finance means the financial resources of the government i.e. all the resourcesmrelated with income and expenditure.
(xvi) What is public debt?
Ans:- Public debt means all the types of debt taken by the government from any sources i.e. internal sources or external sources in order to overcome its financial needs.
(xvii)What do you mean by growth rate?
Ans:- The growth rate of any country is defined as a percentage change in the Gross Domestic
Product in the current year as compared to the previous year.
(xviii) What do you mean by Balance of Payment?
Ans. Balance of Payment is a systematic record of all the payments and receipts of a country with
rest of the world in a given period of time.
(xix) What is monetary policy?
Ans. Monetary Policy is the policy by which the Central Bank and the Government of a Country
control demand and supply of money and all its related aspects.
(xx) What do you mean by Fiscal policy of the government?
Ans. Fiscal policy is the policy related with the income and expenditure of the government.
Answer of these questions should be given between 50-60 words.
Discuss wealth definition of Economics.
Ans. The first and the systematic definition of economics was given by a famous economist and
father of economics “Adam Smith” in his famous book “An Inquiry into the Nature and Causes of
Wealth of Nations” in 1776. According to him, “Economics is an inquiry into the nature and causes of wealth of nations.” He further explains that the main subject matter of economics is wealth and all the economic activities which are related with wealth. Economics provides us the knowledge about “what is meant by wealth of nations?”, “How this wealth can be increased”? “If a country wants to grow and prosper, then how could this wealth be saved and invested?”, etc.
Discuss material welfare definition of Economics.
Ans. Adam Smith was severely criticized for providing undue importance to wealth in his
definition. So, after him, Alfred Marshall, provides material welfare definition of economics in his famous book ‘Principles of Economics’ in 1890.
According to Marshall, “Economics is a study of mankind in the ordinary business of life. It examines that part of individual and social welfare which is closely connected with the attainment and use of material requisites of well being.” In this definition, he tried to explain economics as a study of all those activities done by a social man (who lives in the society) through which he tries to attain various materialistic goods and consumption of those goods, can maximize his satisfaction or welfare
What is the difference between Micro Economics and Macro Economics?
Ans. The word Micro has been derived from the Greek word `MIICROS’ which means SMALL.
So, Micro Economics studies economic activities at small level i.e. the economic activities of an individual or a household. The subject matter of micro economics includes the theory of demand, theory of supply, theory of production, theory of cost, etc.
The word Macro has been derived from the Greek word MAKROS which means LARGE. So,
Macro Economics studies economic activities at large scale or the level of an economy as a
whole. The Main subject matter of Macro Economics is aggregate demand, aggregate supply,
aggregate consumption, National income, etc.
What do you mean by the government budget? State various sources of income and
expenditure of the government.
Ans. A government budget is a financial statement showing item-wise expected receipts and
expenditures of the government during a particular financial year.
Sources of the Income of Government: Government earns its income from various tax and non-tax sources. Tax sources of the government include Goods and Services Tax (GST), Income tax, Excise duty etc. Non-tax sources of the government include various types of fees, fines, donations etc.
Sources of the Expenditure of Government: Government expenditure primarily done on defence of the country, police, schools, hospitals, roads, electricity, administration, development of various sectors like agriculture, industry, service, social welfare i.e. providing various types of subsidies, pension, scholarships to the students, economic planning, development of infrastructure for the development of urban and rural areas, etc.
What do you mean by public finance? List the various items included in public finance.
Ans. Public Finance is made up of two words i.e. Public and Finance. Here Public means `The Group of People which is represented by the ‘Government’, so ultimately ‘Public’ means the Government. The word ‘Finance’ means the financial resources i.e. the resources related with income and expenditure. So, Public Finance means the financial resources of the government i.e. all the resources related with income and expenditure of the government. It should be kept in mind that here, government means both the state government and the central government. So, in public finance we study income and expenditure related resources of the government. In the income aspect, we study various sources of income of the government i.e. various tax and non- tax sources and in the expenditure aspect; we study various expenditure items of the government i.e. developmental and non-developmental expenditures of the government, planned and non- planned expenditures of the government etc.
What is meant by growth rate? How it can be measured?
Ans. The growth rate of any country is defined as a percentage change in the Gross Domestic
Product in the current year as compared to the previous year.
For example, if the Gross Domestic Product (GDP) of a country is 100 Crore in the precious
year and this year it is 1110 Crore, then the growth rate of the country can be calculated as:
Growth Rate: GDP of the Current Year— GDP of the Previous Year X100
GDP of the Previous Year
Growth Rate:-( 110 crore – 100 crore) X 100
100 crore
Growth Rate : 10%
What do you mean by Public debt? Discuss its various sources.
Ans. Public debt means all the types of debt taken by the government. Sources of income of the government are limited in relation to its expenditure. Whenever the government has shortage of funds in order to make expenditure on certain essential items, then it has to borrow some funds from others in the form of debt. So, all these types of debt taken by the government from any sources i.e. internal sources (within the country), or external sources (from outside the country) are called Public Debt.
PSEB SOLUTION CLASS 10 LESSON 1 ECONOMICS AN INTRODUCTION PDF
Download pdf of pseb class 10 sst solution chapter 1 economics
In conclusion, the PSEB solution for Lesson 1 Economics-An Introduction in the academic year 2023-24 is a crucial step towards enhancing students’ understanding of the fundamental principles of economics. By studying this lesson, students will develop a solid foundation in economic concepts and principles that will serve them well in their future academic and professional pursuits. They will gain insights into how individuals, businesses, and governments make decisions in an economy, and learn to analyze and evaluate economic issues critically. The PSEB’s comprehensive solution will empower students to become informed and responsible citizens who can contribute effectively to the economic development of their communities and the nation as a whole.
FREQUENTLY ASKED QUESTION
Q: What is the significance of studying Lesson 1 Economics-An Introduction in the academic year 2023-24?
A: Studying this lesson is significant as it provides students with a strong foundation in economic concepts and principles. It enables them to understand how economic decisions are made by individuals, businesses, and governments. This knowledge is essential for students to analyze and evaluate economic issues critically and make informed decisions in their personal and professional lives.
Q: How will studying this lesson benefit students in their future academic and professional pursuits?
A: By studying this lesson, students will develop a deep understanding of the fundamental principles of economics. This knowledge will be invaluable in various academic disciplines such as business, finance, and public policy. It will also equip them with the analytical skills necessary to navigate complex economic situations and make informed decisions in their future careers.
Q: How does the PSEB solution for Lesson 1 Economics-An Introduction contribute to students’ overall development?
A: The PSEB solution for this lesson provides a comprehensive approach to learning economics. It promotes critical thinking, problem-solving, and analytical skills among students. By understanding economic principles, students can develop a broader perspective on global issues and become responsible citizens who contribute positively to the economic development of their communities and the nation as a whole.
Q: Will studying Lesson 1 Economics-An Introduction help students in their day-to-day lives?
A: Yes, studying this lesson will benefit students in their day-to-day lives. It will enable them to make informed decisions about personal finance, understand the impact of economic policies on their lives, and become more financially literate. Furthermore, the knowledge gained from this lesson will help students become informed consumers who can identify economic trends and make sound purchasing decisions.
Q: How does Lesson 1 Economics-An Introduction contribute to a student’s overall understanding of the world?
A: Lesson 1 Economics-An Introduction provides students with a framework to understand how economic systems function and interact with other aspects of society. This knowledge enables students to comprehend the complexities of global issues such as poverty, inequality, and sustainable development. It enhances their ability to critically analyze and evaluate economic factors that shape the world, thereby fostering a more comprehensive understanding of the interconnectedness of various social, political, and environmental issues.