RBSE Solutions For Class 10 Social Science Chapter 16: Challenges Before Indian Economy | Textbook Important Questions & Answers

India is one of the fastest-growing economies in the world today and the whole world is accepting its growing economic power. However, along with this development, the Indian economy has to face many challenges. In order to broaden our general sense and knowledge in this context, we need to understand the meaning, form, cause, result and preventive measures required for its dimension. The solutions of RBSE Class 10 Social Science Chapter 16 are provided here for the convenience of the students. Revising from the solutions, along with the textbooks, will help students crack any problems asked in the exams. Practising these RBSE Class 10 solutions of Social Science Chapter 16 helps students to top the final exams and ace the subject.

RBSE Class 10 Social Science Chapter 16 Very Short Answer Type Questions

Q1. What are the challenges that come before the Indian economy?

Answer: The challenges that come before the Indian economy are price rise, poverty and unemployment.

Q2. Which index is used for inflation?

Answer: Wholesale price index, Consumer price index and National income index.

Q3. Which monetary measures are used to control Inflation?

Answer: Monetary measures are adopted by the Central Bank of India (Reserve bank of India) to control inflation.

Q4. The latest estimates of poverty in India are presented by whom?

Answer: The latest estimates of poverty in India are presented by the United States.

Q5. Explain the concept of absolute poverty.

Answer: Absolute poverty is a situation in which a person does not meet the minimum requirements of life. The idea of absolute poverty is more relevant in undeveloped nations. When the word ‘poverty’ is used in nations like India, it means ‘absolute poverty’.

RBSE Class 10 Social Science Chapter 16 Very Short Answer Type Questions

Q6. What is inflation?

Answer: Inflation means continuous increase in general price. In financial terms, the word ’inflation’ is used for the appreciation of the currency. In the monetary system, the exchange of the unit of an item or a service with all those units of the currency is called the price of that item or that service. In description, the situation of continuous increase in the general price level is termed as inflation.

Q7. Explain inflation trends in India after independence.

Answer: Inflation rate in India is generally measured with the wholesale price index. Since the time of Independence, the rate of high inflation has been a serious problem in India. In the decade of 1950, the average rate of inflation was pegged at 1.7 percent, but in the 1960s it became 6.4 percent. In the seventies, it reached more than 9 percent. The period of high inflation continued till 1995 A.D. After this there was a fall in inflation and between 2000-2001 and 2011-2012 it remained around 4.7 percent.

Q8. Explain the fiscal measures of inflation control.

Answer: Fiscal measures are taken by the government. Through these measures, the government tries to control the aggregate demand and increase the aggregate supply by making changes in taxation, reducing public expenditure and public debts. The government can reduce inflation by increasing direct tax, reducing public expenditure and controlling aggregate demand and by public debts. The government can also control inflation through increasing the aggregate supply by reducing indirect taxes and increasing investment in productive measures.

Q9. What are the monetary measures taken for inflation control? Explain.

Answer: Monetary measures are adopted by the Central Bank of India (Reserve Bank of India) to control inflation. Under these measures, the Central Bank tries to reduce the availability demand and increase the aggregate supply through the amount of currency, availability of credit and by manipulating the interest rates.. When the amount of money or the credit reduces, the aggregate demand also decreases, thus the inflation also goes down.

Q10. Discuss the economic causes of poverty in India.

Answer: Most of the people of India are victims of economic backwardness. People cannot invest in education and health in the state of economic backwardness due to which the quality of their lives remains low. Due to low quality they get less income and they cannot come out of the vicious cycle of poverty. Before independence most of the Indians relied on agriculture and their base of resources was very weak. Due to lack of investment, agricultural productivity remained low. For these reasons the income incurred by small farmers and agriculture labourers is still continued to remain at the minimum level of livelihood. Economic backwardness reduces the availability of opportunities for a person. In the absence of opportunities,a person cannot come out of the vicious cycle of poverty. In this way, the economic causes of poverty in India are measured.

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