8th Standard Social ( Meaning and types of Economics)

 Class 8 Meaning and types of Economics

 

I. Fill In The Blanks:

1. Economy refers to the nature of the organization of Economic activities.

2. NITI Ayog was set up in 2015.

3. Free enterprise is a basic feature of economy Capitalist.

 

4. Good example of capitalist economy is U.S.A.

5. Co-existance of public and private sectors is seen in Mixed economy.

II. Answer The Following

1. What is an economy?
Ans: An economy as a frame work of economic institutions where all economic activities are carried out to improve individual and social welfare.

 

2. Mention the features of capitalist economic system.
Ans: a) Private property

b) Freedom of enterprises

c) Consumers sovereignty

d) Profit motive

e) Competition

f) Absence of government

 

3. What are the defects of capitalist system?
Ans: An individual acquire the property and used for one’s own benefit. Business people earn the highest possible profit. “Capitalist” class are motivated to maximize their profit. These lead to intense competition, inequal distribution of wealth. Production is also guided by consumer choices only in the capitalist system.

 

4. What is planning?
Ans: The conscious & wise process through which government with certain specific objectives utilizes the country’s resources in a profitable manner in order to secure maximum satisfaction of its people is called planning.

 

5. How are economics classified on the basis of level of development?
Ans: On the basis of level of development economics can be classified into two ‘ categories.

“Developed economy” and “Developing economy”

 

6. How does government regulate the activities private sector in mixed economy.
Ans: Production units owned by the government which work with welfare as their objective.

It also regulates the activities of private sector through various policies such as licensing policy taxation policy, price policy, monetary policy and fiscal policy.

 

7. What is disinvestment?
Ans: The government selling its shares of public sector industries is called disinvestment.

 

8. Why is India considered a developing economy?
Ans: The national and Per capita income is low. India has backward agricultural and industrial sectors. Low savings, investment and capital formation, low standard of living, poor health and sanitation, high infant mortality, high birth and death rates, and poor infrastructure.