cbse class-10-social-science-economics-notes

CBSE Class 10 Social Notes Economics

NCERT Solutions CBSE Sample Papers RD Sharma Solutions

1 CBSE Class 10 Social Notes Economics

Table of Contents

1. Development ............................................................................................................................... 3

Technical Terms .......................................................................................................................... 3

Important Points ......................................................................................................................... 4

2. Sectors of the Indian economy ................................................................................................... 5

Technical Terms .......................................................................................................................... 5


3. Money and credit .........................................................................................................................7

Technical Terms ...........................................................................................................................7


4. Globalization and the Indian economy ....................................................................................... 9

Technical Terms .......................................................................................................................... 9

Important Points ........................................................................................................................10

5. Consumer rights ......................................................................................................................... 11

Technical Terms ......................................................................................................................... 11

Important Points ........................................................................................................................ 11

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1. Development

Technical Terms

Development: Growth of economy along with the improvement in the quality of life of the

people like health, education etc.

Social Development: Growth of different section of the society in a country.

Health: State of complete physical, mental and social soundness.

Education: Awareness of the society regarding the laws of the lan.

Sex Ratio: Percentage of female’s population per thousand males in a country.

Economic Activity: Activities concerned with earning of income for livelihood.

Non-Economic Activity: Activities which are not concerned with earning of income.

Economy: A designated boundary area within which production, consumption and investment

activities are carried on.

Human Development Index (HDI): The measure of human capabilities such as length of life,

educational achievement, and standard of living.

Central Statistical Organization: An organisation which conducts survey and presents

statistical data of the economy like national income, proportion of population, GDP etc.

National Income: Sum of the market value of final goods and services produced in a country in

an accounting year.

Income: Money earned by an individual, or company etc.

Infrastructure: Availability of roads, bridges, power, health, education facilities etc. in an

economy.

Developed Economies: Economies which are characterized by high level of capita income and

higher standard of living. For example, USA, United Kingdom, Australia etc.

Developing Economies: Economies which are in the progress of growth and development. For

example, India, China etc.

Underdeveloped Economies: Economies which are characterized by low level of income and

standard of living. For example, Bhutan, Nepal etc.






Important Points

Infant Mortality Rate: The rate at which children in a country die within an age of 0-1 year.

Net Attendance Ratio: Total number of children of age group 6—10 attending school as a

percentage of total number in the same age group.

Body Mass Index (BMI): Level of under-nourished adults in an economy.

Man-made Resources: Resources created by man like, roads, bridge, plant and machinery etc.

Nature-made Resources: The resources provided by the nature like, crude oil, land,

mountains, sunlight, etc.

Literacy Rate: The proportion of literate population in the 7 and above age group.

Developing Countries: Countries having low and medium income as per World Bank’s

estimation.

Factors of Production: Inputs which are required to produce goods and services known as

factors of production. Land, Labor, Capital and Enterprise are factors of production.

Accounting Period: Period of 12 months starting from 1st April and ending on 31st March of

the next year.

Census: The official enumeration of population along with certain economic and social statistics

in a given territory and carried out on a specific day.






2. Sectors of the Indian economy

Technical Terms

Primary Sector: Primary sector is the sector which involves agricultural activities, mining,

forestry, poultry etc.

Secondary Sector: It is the sector which is engaged in manufacturing of goods from raw

material provided by the primary sector.

Industry: It is a combination of firms engaged in similar activity like textile industry, banking

industry, insurance industry, auto industry etc.

Public Investment: The money invested by the government in construction of roads, bridges,

dams, schools, colleges, law and order etc.

Employment: It is a situation where the able- bodied persons willing to work and are engaged

in some productive activity to earn the income.

Unemployment: It is a situation where the able- bodied persons willing to work but are not

able to get work. They are not engaged in any productive activity.

Underemployment: It is a situation where people work at a job which is below their capacity

and skill set and education.

Trade: Trade means the activity of buying and selling of finished goods in the market.

Ore: A type of natural resource which is commercially useful and contains metals and other

compounds.

Transhuman: Seasonal migration of people with their animals in search of pastures and water.

Ranch: It is a wide ideal farm set up with modern facilities where animal husbandry is carried

on with the main purpose of obtaining meat and wool.

Antism: It is a serious mental ailment present from early childhood in which one is unable to

communicate with others.

Birth Rate: The number of live births for every thousand persons.






Important Points

Service/Tertiary Sector: Tertiary sector is a service sector which helps both primary and

secondary sectors. It includes transportation, banking, financing, insurance etc.

National Sample Survey Organisation (NSSO): It is an organisation which conducts surveys

on employment and unemployment in an economy.

Disguised Unemployment: It is a type of hidden unemployment where people seem to be

working but they do not contribute to the actual production.

Gross Domestic Product: The value of goods and services produced in an economy in a

financial year.

Organized Sector: It covers those enterprises where the terms of employment are regular and

they have assured work.

Unorganized Sector: Small and scattered units which are outside the control of the

government come under the unorganized sector.

Public Sector: Those enterprises in which government owns majority of the shareholding of the

company/enterprise.

Private Sector: Those enterprises where the ownership of assets is in the hands of private

individual/companies.

Small Scale Industry (SSI): These are the group of small units which is engaged in productive

activities for generation of employment.

Occupation: Activity carried by human beings for the purpose of supporting themselves by

earning income.

Large Scale Industry (LSI): Those groups of companies which employ large number of labor

use superior technology and need high investment.

Cottage Industry: An industry which require low investment and does not employ labor but

uses the services of the family member to produce the article of local use.






3. Money and credit

Technical Terms

Money: It means anything chosen by common consent as a medium of exchange.

Credit: It refers to the activity of borrowing and lending money between two parties.

Financial System: A system which deals with the management of public money collected from

tax.

Banking: The activity of deposit, withdrawal of money and other related monetary activities.

Credit Money: The money whose money value is greater than the commodity value of the

material from which the money is made is known as credit money.

Standard Money: The legal money, in which the government discharges its obligations, is

known as standard money.

Barter System: The system by which one commodity is exchanged for another without use of

money.

Collateral: It is an asset that the borrower owns (such as land, building, vehicle live stocks,

deposits with banks) and uses this as a guarantee to a lender until the loan is repaid.

Cheque: It is an unconditional written instruction made by the account holder to the bank to

pay the specified amount to the drawer of the cheque or to any other person as per instruction.

Debit Card: The card issued to the Bank Account holders against their bank balance to facilitate

and simplify the payment, withdrawal and transfer of money anytime, anywhere through the

computer is known as Debit Card.

Credit Card: The card issued to selected customers to enable them to make payment of credit

bills up to specified limit any time anywhere through computer is known as Credit Card.

Bank Rate: The rate at which the Central Bank, lends funds as a “lend of last resort” to

commercial bank against approved securities or eligible bills of exchange is known as Bank Rate.

Saving: It is the part of the income which is over and above the consumption requirements.

Landlords: They are the. People who own farm land in villages on which poor farmers cultivate

the crops.

Chit Fund: Chit fund is a process where money is collected from specified number of persons

under an agreement for specified number of years and repaid after the expiry of agreement.






Important Points

Bank (Commercial): An Institution which accepts deposits from public for the purpose of

lending and investment.

Indian Monetary System: The system of managing demand and supply of money by the

Reserve Bank of India is known as Indian Monetary System.

Reserve Bank of India (RBI): It is the Central Bank of India which controls the

Monetary policy of the economy. It was established on 1st April 1935 as shareholder bank.

Automated Teller Machines (ATMs): It is a free standing self-service terminal performing

60% of tellers job quickly and at lesser cost.

Crossing of the Cheque: Drawing two parallel lines on the left side on top of a cheque is called

crossing of the cheque.

Money Supply: It is the total stock of money at a particular point of time in an economy.

Deferred Payment: The payment which is to be made in the future.

Cash Reserve Ratio (CRR): It is minimum cash which a commercial bank needs to keep with

itself as per the regulation of RBI.

Formal Institutions: They are the institutions which are regulated by rules and regulations laid

down by the Government/RBI.

Informal Institutions: These institutions are self-managed and they are out of the reach of RBI

regulations due to their unorganized structure and way of working.

Local Moneylenders: They are informal institutions who lend money on the basis of nearness

of the local population.

Self-help Groups: These are groups generally formed in villages where the money is collected

from the members and given as loan to the member at a nominal rate of interest.

Private Finance Companies: These are the private owned finance companies which extend

loans to a particular class of borrowers like government employees, multinational companies

employee etc.

Travellers Cheque: It is legal tender money which is issued to travellers moving from one

country to another country where they can make their purchases by the use of traveller cheque.






4. Globalization and the Indian economy

Technical Terms

Globalization: It means opening up the economy to facilitate its integration with the world

economy.

Liberalization: It refers to liberal and easy policy for carrying business or profession within or

outside the country and it also seeks to make licensing policy easy.

Privatization: Privatization means removing strict control over private sector and making them

free to take necessary decisions. Outsourcing: It is the process of giving some internal functions

of the business to some outside vendor, who will take care of that particular process to help the

overall business objective.

Foreign Trade: It is a process of buying and selling goods and services from one country to

another.

Foreign Companies: These are the companies w7hich work in a country but they were

originally incorporated or registered outside the country.

Foreign Investment: This refers to the setting up of a foreign company’s office in a country or

investing money in some infrastructure project like, roads, rail, bridge, electricity power etc.

Fiscal Deficit: The excess of all estimated government expenditure during the year over the

anticipated government receipts of the year both on revenue and capital account except

borrowings is termed as fiscal deficit.

Revenue Deficit: It refers to the excess of government revenue expenditure over the revenue

receipts.

Call Centre: It is a part of BPO which specially deals in taking customer’s calls in case of

inbound and making calls to customers in case of outbound.






Important Points

Economic Reforms: Economic reform is the process of liberalization, globalization and

privatization of the industrial sector of the economy to bring competitiveness and market driven

functioning of the economy.

Multinational Companies (MNCs): A multinational company is a company that owns or

controls production in more than one nation.

Business Process Outsourcing (BPO): A BPO is an organisation which works on different

processes of different companies to help them in reducing cost of operation and providing

standard and high quality service delivery.

MRTP Act: Monopoly and restricted trade practices act was established in 1970 to regulate the

competitive environment among companies.

International Monetary Fund (IMF): IMF is an international financial institution that helps

member nations to overcome the scarcity of foreign exchange.

World Bank: An International financial institution established to extend financial assistance to

member-nations for development purpose.

WTO: It stands for World Trade Organisation. The aim of this organisation is to conduct the

international trade among member countries.

Multi-lateral Agreements: The agreements entered by group of countries are known as multi-

lateral agreements.

Mixed Economy: It is a system in which private and public sector work together.

IT Sector: Information Technology Sector provides hardware, software and other related

services to companies based within or outside the country.






5. Consumer rights

Technical Terms

Consumer: The person who uses goods and services for his self-consumption.

Customer: The person who buys goods and avails services from the market is called customer.

Adulteration: It is the practice of mixing bad substances in a good substance which is sold in

the market.

Agmark: It is implemented under the “Agricultural Produce Act 1937”. It was amended in the

year 1986 and it covers products like Honey, species etc.

Market Place: It is a place where buyers and sellers come together to exchange goods and

services.

COPRA: Consumer Protection Act.

Consumer Awareness: Consumer’s conscious-ness towards their rights and the social and legal

obligations of the business and the government towards consumers are known as consumer’s

awareness.

Important Points

Consumer Protection: Consumer protection means protection of consumers from the

mishappening due to technical or manufacturing fault of commodities.

Consumer Rights: The rights which help the consumer in protecting himself from being

exploited are known as consumer rights.

World Consumer Day: World consumer day is observed every year on 15th March.

Right to Information Act 2005: This act gives rights to the citizen of the country to have

information about the government departments, their policies, practices and procedures.

Consumer Movement: Ralph Nadar was the father of the Consumer Movement.

Maximum Retail Price (MRP): It is a maximum retail price printed on packaged goods. The

seller cannot charge a price more than MRP.

National Consumer Day: It is celebrated on 24th December of every year.






Public Distribution System: PDS is also known as ration shop. The aim of PDS is to prevent

hoarding, black marketing etc.

Consumer Courts: These are the courts dealing in consumers cases only.

Codex Alimentarious Commission: It was created in 1963 by Food and Agriculture

Organisation (FAO) and World Health Organisation. Its head office is in Rome.


