Kerala Syllabus 9th Standard Social Science Solutions Part 2 Chapter 9 Economic Systems and Economic Policies

You can Download Economic Systems and Economic Policies Questions and Answers, Summary, Activity, Notes, Kerala Syllabus 9th Standard Social Science Solutions Part 2 Chapter 9 help you to revise complete Syllabus and score more marks in your examinations.

Kerala State Syllabus 9th Standard Social Science Solutions Part 2 Chapter 9 Economic Systems and Economic Policies

Economic Systems and Economic Policies Textual Questions and Answers

Question 1.
Name the different economic systems
Answer:

  • Capital economy
  • Socialist economy
  • Mixed economy

Question 2.
What do you mean by capitalist economy? Point out its important features.
Answer:
Capitalist economy is the economy in which the ownership of means of production is with private individuals who work with the motive of making profits. Other features of capitalist economy are as follows:

  • Freedom for the entrepreneurs to produce any commodity
  • Right to private property
  • Profit motive
  • Transfer of wealth to legal heir
  • Free market with no control over price
  • Consumers sovereignty
  • Competition among entrepreneurs to sell products.

HSSLive.Guru

Question 3.
In a capitalist economy, major economic decisions are taken by
Answer:
Price Mechanism

Question 4.
Define socialist economy. What are the features of a socialist economy?
Answer:
Socialist economy is an economic system in which the means of production are owned by the public sector. This economic system works on centralised planning. Let us analyse other features of a socialist economy:

  • Activities aimed at social welfare
  • Absence of private entrepreneur
  • Absence of private ownership of wealth and transfer of wealth to legal heir
  • Economic equality

Question 5.
Point out demerits of socialism
Answer:

  • Less investment.
  • Absence of private ownership of wealth
  • Limited choice of products.

Question 6.
What is mixed economy? What are its features?
Answer;
Mixed economy is the economy that has certain features of both the capitalist economy and socialist economy. India has adopted mixed economy. Let us analyse some of the features of a mixed economy.

  • Existence of both private and public sectors.
  • Economy works on the principle of planning
  • Importance to welfare activities
  • Existence of both freedom of private ownership of wealth and economic control.

Question 7.
Categorise the following countries into different economic systems.
1. USA
2. China
3. Cuba
4. India
5. Sri lanka
6. U.K.
Answer:
Capitalist economy:
1. USA
6 U.K.
Socialist economy
2. China
3. Cuba
Mixed Economy
4. India
5. Sri lanka

Question 8.
Relaxation of government control and influence over the economic activities in a country is:
a) Privatisation
b) Liberalisation
c) Globalisation
d) Marketisation
Answer:
b) Liberalisation

Question 9.
India adopted new economic policy in
Answer:
1991

Question 10.
Mention the changes that were brought about as a result of liberalisation.
Answer:

  • Relaxation of control in setting up industries.
  • Reduction of import tariff and tax.
  • Changes in foreign exchange rules.
  • Abolition of market control
  • Permission of foreign investment in many sectors.
  • Reduced the role of government in the basic industries and basic infrastructure development.

Question 11.
Prepare a note on globalization.
Answer
Globalisation is the economic integration and interdependence of nations as a result of free flow of capital, labour, goods and services, and exchange of technology irrespective of boundaries.

Towards the end of the twentieth century, developments in computer, mobile phones, internet, etc helped in improved communication. Container ships, flights, bullet trains, etc. contributed to the fast means of transportation these changes helped globalization.

Question 12.
WTO was formed on
Answer;
1st January 1995

Question 13.
Name Bretton woods twins
Answer;
IMF and World Bank

Let Us Assess

Question 14.
Why is the capitalist economy known as Market economy?
Answer;
Capital economy functions aiming profit, complete each other and there is no control over prices. So capital economy is also called market economy.

HSSLive.Guru

Question 15.
Elucidate the concept of police state.
Answer;
In capital economy there is very little government intervention in the economic activities in capitalist economy. The main functions of the nation are to maintain law and order and to defend the country from foreign invasion. Such nations are known as police state.

Question 16.
Planning is the main feature of the socialist economy. Explain.
Answer;
It is through planning that the basic problems of an economy are solved by the socialist economy. Regarding what to produce, how to produce and for whom to produce is done to ensure social welfare. Goods and services are produced and distributed accordingly. The amount of goods and services required for the society is calculated and production is done accordingly.

Question 17.
Today, purely capitalist and socialist economies can not be found in the world. Substantiate.
Answer;
Pure form of capitalist or socialist economies can not be seen anywhere today. There is government intervention in capitalist economies like those in the United Kingdom and the United States of America. Private ownership of wealth and freedom of market have been permitted in socialist countries like China and Cuba.

Question 18.
List the actions taken by the government of India as a part of liberalisation.
Answer:

  • Relaxation of control in setting up industries.
  • Reduction of import tariff and tax
  • Changes in foreign exchange rules
  • Abolition of market control
  • Permission of foreign investment in many sectors.
  • Reduced the role of government in the basic industries and basic infrastructure development.

Question 19.
Make a note on the working of multinational companies.
Answer:
Multinational companies are those companies registered in the home country but operating in many countries. These companies with high technology and huge capital viewed neoliberalisation as an opportunity. Instead of producing goods in a country and exporting it to other countries, the multinational companies have invested their capital in developing countries so that raw materials, labour and market available there can be used in their favour.

Question 20.
Do you support globalisation policies? Why?
Answer:
Globalisation have its own merits and demerits. As part of globalisation a wide variety of products, ability to use the most advanced technology, increased competition in the market, more employment opportunities and increase in national income are possible and at the same time increase economic disparity, excess exploitation of natural resources, fall in the price of domestic products lose of government control over economic system happens. Even though globalisation is good for developed nations but it has adverse effect for developing nations.

Question 21.
What are the features of mixed economy?
Answer:

  • Existence of both public and private sectors.
  • Economy works on the principle of planning.
  • Importance to welfare activities.
  • Existence of both freedom of private ownership of wealth and economic control.

HSSLive.Guru

Question 22.
What is known as globalisation?
Answer:
Globalisation is the economic integration and inter-dependence of nations as a result of free flow of capital, labour, goods and services and exchange of technology irrespective of boundaries.

Leave a Comment

error: Content is protected !!