CBSE Supporting Material - 2013 For Class – XI (Economics)

CBSE Supporting Material - 2013



Points to Remember

  • Economics is a science that studies human behaviour as a relationship between ends and scarce means which have alternative uses.

  • Scarcity means shortage of goods and resources in relation to their demand.
  • Scarcity is the root of all Economic problems.

Resources are:
(A) Scare / limited and
(B) have alternative uses


Economic Activities Non-Economic Activities
1. Production
2. Consumption
3. Investment
4. Exchange
5. Distribution
1. Social
2. Religious
3. Political
4. Charitable
5. Parental

Economic activities are those activities which are associated to earn money and wealth for life. These activities generate new income and increse the flow of goods and services. For example production, consumption, investment, distribution.

Non economic activities are those activities which are not related to earn money and wealth. These activities neither generate income nor increase the flow of goods & services.

Consumer : Consumer is an economic agent who buys the goods and services to satisfy his wants.
Producer :
is one who produces goods and services for the generation of income.
Service holder :
A person who is in job and gives his services as a factor of production to earn wage or salary. eg. Govt. teacher.
Service Provider :
A person who provides services to final consumer to earn money e.g. transporter, auto driver.
Statistics :
Statistics is a method of taking decisions on the basis of numerical data.


Q. Define Human Capital Formation? (1 mark)
Ans. It is the process of adding to the stock of skilled, educated, trained and experienced human capital in an economy.

Q. Explain main sources of human capital (3/4 marks)
Hints : Explain the following point :
a) Expenditure on education.
b) Expenditure on health.
c) Training
d) Expenditure as information.
e) On job training.

Q. Explain the role of education in the development of a country. (6 marks)
Ans. Hints : Explanation of following points
a) Education raises production.
b) Education raises efficiency and productivity.
c) Education improves quality of life.
d) Education generates employment
e) Education brings positive changes in outlook and attitudes.
f) Education increases the stock of human capital.

Q. What do you means by rural development. (1 mark)
Ans. Rural development means focus on providing basis infrastructure to that rural areas which are lagging behind for overall development of the village economy.

Q. What is a multi agency system? Why was it set up in India? (3/4 marks)
Ans. Multi agency approach consist of :
a) Cooperative credit societies
b) Commercial banking.
c) Regional Rural Bank.
It was set up to provide rural credit in all rural areas.

Q. Explain Functions of NABARD
Ans. Hints :
a) Providing loan (short, mediums long) to cooperative societies, RRBs, and Land Development Bank.
b) Grant longterm loan to state govt.
c) Inspections of coopperative banks and RRBs.
d) Coordinasion of activities concurring to the development of SSIs, village industries and rural crafts.
e) To promote research in agriculture and rural development.
f) Serve as refinancing agencies.

Q. What is Jobless Growth? (1 marks)
Ans. It is a situation where there is an overall acceleration in the growth rate of GDP in the economy which is not accompanied by a commensurate expansion in employment opportunities.

Q. What a main types of unemployment. (3/4 marks)
Ans. Explain any
a) Open unemployment
b) Fractional unemployment
c) Structural unemployment
d) Cyclical unemployment
e) Seasonal unemployment
f) Disguised unemployment

Q. What are main causes of unemployment. (6 marks)
Ans. Explain the following :
a) Poverty employment planning
b) Lacks of financial resources
c) Increasing population.
d) Slow economic growth
e) Emphasis an capital intensive projects.
f) Poor growth of small scale industries.
g) Unbalance growth of sectors.


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