ECONOMICS CHAPTER - 14: ECONOMIC STRUCTURE
I. Fill in the blanks with suitable words.
1) Positive change relates to economic activities.
Answer :- A positive change in an economy generally reflects progress in various economic activities.
2) In the ancient economies, Agriculture was the main one.
Answer :- Agriculture served as the primary and most important sector in ancient economic systems.
3) There are two sectors in a simple economy.
Answer :- A simple economy is typically composed of two main sectors: Households and Firms.
4) ‘Static economics’ has been derived from the word ‘statike’.
Answer :- The term 'Static' originates from the Greek word 'statike', meaning to stand still.
5) Industrial Revolution first took place in Britain
Answer :- Great Britain was the birthplace of the Industrial Revolution in the 18th century.
II. Answer the following after discussing them in groups:
6) What is economic structure?
Answer :-
- Economic activities are broadly classified into three sectors: Agricultural (Primary), Industrial (Secondary), and Service (Tertiary).
- Economic structure refers to the nature of production and employment within these three sectors, the prevailing income levels, the technology used, and the resulting changes in people's lifestyles.
7) Mention the feature of ancient economics systems.
Answer :-
- Agrarian Basis: Traditionally, the Indian economy was an agrarian one where the majority of the population worked in fields.
- Subsistence Farming: Farmers practiced subsistence agriculture, growing only enough food to meet the needs of their own families.
- Simple Living: Human wants were limited, and people led very simple lives.
- Barter System: Goods and services were exchanged directly for other goods and services without the use of money.
8) How did the capitalist class emerge?
Answer :-
- The Industrial Revolution, which began in Britain during the 17th and 18th centuries, eventually spread across the globe.
- This shift from manual labor to machine-based manufacturing led to the rise of a new social class called the "Capitalist Class."
- Feudal lords, who previously held wealth in the form of land, began investing their capital into new factories and industries, becoming the first major investors.
9) What are the sources of Income?
Answer :-
- In a basic or simple economic model, income flows between two primary sources:
- The Household Sector: Provides labor and resources in exchange for wages and rent.
- The Firms Sector: Produces goods and services and generates profit.
10) What are the sources of Employment?
Answer :-
- Agriculture: Farming and related activities like forestry and fishing.
- Industry: Manufacturing, construction, and mining.
- Service Sector: Banking, transport, education, healthcare, and IT.
11) Explain the difference between static and dynamic economics.
Answer :-
| Static Economics | Dynamic Economics |
|---|---|
| Derived from the word ‘statike’, meaning ‘to stand still.’ | Derived from the Greek word ‘dynamikos’, meaning power or movement. |
| Refers to an economic situation that witnesses absolutely no changes over time. | Refers to an economy undergoing drastic or continuous changes. |
| It is a "timeless" model where variables remain constant. | It is the study of variations and growth patterns that take place in an economy over time. |
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