Class 8 Components of Business Studies
I. Fill In The Blanks:
1. The economic activity
that provided technical or specialized personal services to the consumers is
called Profession.
2. In olden days the goods
were exchanged for goods, which was called Barter system of exchange.
3. The full responsibility
of paper money vests with Central bank.
4. The emergence of
communities and villages took place during Agricultural stage.
5. The main cause of
international trade was Geographical discoveries.
6. Trade and commerce
contribute to the economic development of a country by paying rates, taxes,
duties to the government.
II. Answer The Following:
1. What is economic
activity?
Ans: The activities which are concerned with the production and exchange of goods
and services are called economic activities. Human beings have innumerable
wants to satisfy our wants we need goods and services.
2. Give the meaning of
trade and commerce.
Ans: Trade: Trade is nothing but the buying and selling of goods.
Commerce: commerce includes trade and also aids to trade or auxiliaries
to trade. The aids to trade include transport, banks, warehouse facilities,
advertisement agencies, insurance, etc.
3. What is meant by the
Barter system of exchange?
Ans: The direct exchange of goods for goods or other things is called the
Barter system of exchange. The goods produced were directly exchanged.
4. What is the profession?
Ans: The profession is mainly concerned with the rendering of specialized
technical and personal services.
Ex: Lawyers, Doctors, etc.
5. What are aids to trade?
Name them.
Ans: Many factors help to the progress of trade these are called as aids to
trade. The important aids are
a) Transport b) Banks c) Warehouse facilities
d) Advertisements e) Insurance etc.
6. What are Craft guilds?
Ans: To fulfill the requirements of the. agriculturists some people started to
do some crafts. They become professional craftsmen such as carpenters, weavers,
builders, pottery makers, etc.
III. Answer the following questions in a paragraph.
1. How do production and
exchange play a very important role in our daily life?
Ans: The distribution of goods and services is called an exchange.
Exchange is connecting the link between production and consumption.
During the course of production the producers take into consideration the market study, transportation, advertisements, etc;
Today we have money as a medium of exchange and through many exchanges of goods. The exchange system has become the foundation for business.
2. Explain the different
types of economic activities.
Ans: Economic activities can be classified into three types. They are:
Business: It is mainly concerned with the production and exchange of goods and services.
Profession: Specialized technical and personal services like doctors, lawyers, charted accountants have come under profession.
Employment: It is the work undertaken by the people under an employer for salary or wages. ex. factory laborers, agricultural laborers, etc.
3. What are the
difficulties of the Barter system? How has money solved these problems?
Ans: Difficulties of the Barter system are
a) Lack of double coincidence of wants.
b) Lack of common measure of value.
c) The difficulty of the subdivision.
d) Difficulty to store the goods.
To overcome the above difficulties money is used.
a) Metals were used as a medium of exchange.
b) Paper money issued by the central bank.
c) It has the full support of the government.
d) Nowadays bank money in the form of cheques, drafts, bills, credit card, debit card also play a very important role.
4.Which are the important
stages of economic evolution? Briefly explain any one.
Ans: a) Hunting and fishing stage
b) Pastoral stage
c) Agricultural stage
d) Handicraft stage
e) Barter system stage
f) Money economy stage
g) International trade stage.
Hunting and fishing stage :
a) During this stage man was a wanderer.
b) He moved in groups from one place to another.
c) Fishing was also carried out by them.
d) They lived in cover
e) No economic activity existed during this stage.
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