Civics ch 21- Introduction to Economics (extra questions)

Civics ch 21- Introduction to Economics

1. What is an economy?

An economy is a situation in which some people make goods, provide services and others use these goods and services, without wasting resources. Economy may be that of a village, town or a country.

2. Define economics.
 Economics is the science that deals with the process involved in making, selling and
buying of goods and services.

3. Describe free economy and mixed economy.
Countries in which all goods and services- controlled by private organizations are said to have a free economy. some countries like India has a mixed economy in which complete control is neither in the hands of the government nor with the private institutions.

4. Differentiate between public sector and private sector.
Goods and services provided by companies that are run by the Government are said to belong to the public sector eg; industries related to oil, power, railways, etc. Those companies that are owned and run by individuals or groups of people that do not belong to the public sector are said to be a part of the private sector eg; Industries related to consumer goods and services.

5. What is a plan?
 A plan is a thought out process about the different ways in which the available resources can be put to use to maximize benefit. Plans are made for a specific period of time.

6. State any two functions of the Planning Commission.

• Make a plan to use the country’s resources efficiently.
• Propose allocation of resources in order of priority.
• Identify factors that hinder growth and development and try to eliminate them.
• Find out ways in which the plan can be successfully implemented. (any two)

7. What are the aims of the Five Year Plans?

• Deal with problems of poverty, unemployment and rising prices through the five year plans.
• Achieve sustainable economic development.
• Assess the resources of the country and formulating the best possible ways to utilize these resources

8. What new techniques of farming was adopted as per the Five year Plans in the late 60s and 70s?
Seeds that yielded more crops, fertilizers, machines and pesticides were used. Farmers used the technique of crop rotation, that is, growing two or more groups on a particular stretch of land alternatively.

9. What did the Second Five Year Plan focus on to develop industries?
 The plan focused on setting up new industries and expansion of the ones that existed. The planning commission also emphasized on the importance of cottage industries.