RBSE Solutions For Class 10 Social Science Chapter 14: Economic Concepts and Planning | Textbook Important Questions & Answers

We use the term ’income’ many times in everyday life. Income is the measurement of the welfare of a person or a family. We know that income is not the only determiner of welfare, but it is one of the most important factors among many others. The income of a person or family shows the physical life, social status and economic progress, to a large extent. RBSE Class 10 Social Science solutions of Chapter 14 can be accessed by students to begin with their preparation for the final exam. Students are advised to solve exercise questions using RBSE Class 10 solutions of Chapter 14 Social Science to improve their conceptual knowledge.

RBSE Class 10 Social Science Chapter 14 Very Short Answer Type Questions

Q1. Define national income.

Answer: National Income is the total of income in a financial year by contributing in the production process by all means.

Q2. Define Gross Domestic Product.

Answer: Gross domestic product is the total monetary value of all goods and services

during a financial year in the country.

Q3. When was the National Income Committee formed for calculation of national income?

Answer: The National Income Committee was formed in 1949 to calculate national income.

Q4. Who performs the work of calculating National Income in India in the present times?

Answer: National Statistical Organisation performs the work of calculating National Income in India.

Q5. Into how many sectors has economics been classified? Write their names.

Answer: Economic is divided into three sectors:

  • Primary sector
  • Secondary sector
  • Tertiary sector

RBSE Class 10 Social Science Chapter 14 Very Short Answer Type Questions

Q6. Why should National Income be calculated? Give any three reasons.

Answer: Three reasons why national income should be calculated:

  • With the help of calculation of national income, we can get a clear directive about the status of the economy.
  • It will help us understand the different contributing industries of the economy and their degrees of contribution.
  • It needs to be calculated to aid the government to undertake policy decisions, change tax rules and plan the future roadway for the country.

Q7. Who made the first calculation of National Income and when?

Answer: The first National Income was calculated by Dada Bhai Nauroji in 1868. After this, Findlay Shiraj, Dr. V.R. Rao, R.C. Desai estimated national income. All these scholars used different methods and basis for the calculation of national income. But they did not have reliable data and information so could not apply statistical methods in calculation.

After independence, the National Income Committee was formed under the Chairmanship of P.C. Mahalanobis in August 1949. This committee submitted its first report in 1951 and final report in 1955. This work of calculating National Income was handed over to the Central Statistical Organization (CSO) and it has been doing the work of calculating National Income since 1955.

Q8. Explain the concept of per capita income.

Answer: Per capita income means income per person. National income is not an appropriate

measure of financial well-being. It does not adjust the effect of population change. Per capita income is more appropriate to major economic well-being and economic development, when the impact of change in population is taken for calculation. To calculate per capita income, national income of the country is divided by the population of that country.

Q9. Explain the increasing importance of the Tertiary Sector in India?

Answer: Tertiary sector activities help in the development of Primary and Secondary sector. Products of primary and secondary sectors need to be transported to retail or wholesale dealers for sale (by trucks and trains). Sometimes products need to be stored in warehouses. For smooth trade, we also need to have telephonic communication, correspondence and banking facilities. These are some examples of the activities of the tertiary sector. They also provide service instead of producing goods. So it is also known as the Service Sector.

Q10. Explain the concept of economic progress.

Answer: Economic progress is the increase in income or actual production of a country along with time. It indicates the increase in National Income and per capita income. It is the direct assessment of changes in the economy. Generally, it is seen as measurement of development. Economic progress is the development of natural, physical, human and capital resources of a country. By increasing quality and its best use, the highest standard of income and production can be achieved. Economic progress is a long term quantitative process. There are no qualitative dimensions of economic progress. It is a value less concept. No attention is paid to changes in social, political and institutional conditions. So, this is how concept of economic progress is explained.

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