Class 9 MAHARASHTRA STATE TEXTBOOK BUREAU Solutions Social Studies Chapter 8 - Introduction to Economics
Introduction to Economics Exercise 66
Solution 1
Solution 2 (1)
- Management of individual or family finances is mainly related to income and expenditure.
- Due to limited income and high inflation, one has to make a budget of the house.
- The household has to make a choice regarding how it has to spend its limited resources.
- Management of expenditures in ratio with the income has given birth to the subject of Economics.
- As we manage the finances of our family, similarly, villages/cities, states, countries and world also need to have economic management.
- Thus, economy begins at home.
Solution 2 (2)
- Mixed economy is a mixed form of socialist and capitalist economy. Certain economic activities that are essential for the welfare and development of the nation are fully owned and controlled by the government.
- Many industries are run and controlled by the private individuals whose main aim is to earn maximum profits.
- Thus, both public and private sectors co-exist in the country.
Solution 2(3)
Countries follow different methods of production, distribution and consumption of goods and services. On the basis of economies, countries are divided into three groups. Capitalist Economy, Socialist Economy and Mixed Economy.
Capitalistic Economy: In this kind of economy the means of production are in the hands of the private sector, e.g., Germany, Japan, the U.S.A.
Socialist Economy is a kind of economy in which the means of production is controlled by the government, e.g., China, Russia.
Mixed Economy: In this kind of economy both public and private sectors co-exist. Examples-India, Sweden, the U.K.
Solution 3 (1)
Management of individual or family finances is related to the economic factor of 'income and expenditure.
Solution 3 (2)
The word 'economics' comes from the Greek word 'oikonomia' which means family management.
Solution 3 (3)
In a Capitalistic Economy, the ownership and management of means of production belong to the private sector.
Solution 3 (4)
Globalisation means aligning the country's economy with the world economy and to follow the policy of 'free trade'.
