8th Standard, Social, ECONOMICS, Chapter 14
MEANING AND IMPORTANCE OF ECONOMICS
Exercises
I. Fill in the blanks with suitable words:
1. The word ‘Economics’ originates from the Greek words Oikos and Nomo.
2. Kautilya who was in the Mauryan court, wrote the book Arthashastra.
3. The quality of the goods and services which can satisfy man’s wants is called utility.
4. The physical and intellectual work that is done in return for money is called labour or work.
II. Answer the following in a sentence each:
5. What is Economics?
Answer: Economics is a Social Science. It deals with economic activities, problems of Individuals, business units, Society and that of the global economy.
6. Who is identified as the ‘Father of Economics’?
Answer: Adam Smith is identified as the ‘Father of Economics’.
7. What are Economic Activities?
Answer: We will have to do some work in order to earn money. Man makes use of his skills and labour to earn money, and satisfies his wants by utilizing that money. In order to earn money and wealth, and thereby to satisfy his wants, man engages himself in various activities. These activities are called economic activities.
8. A student buys a pen and writes with it. What kind of economic activity is this?
Answer: A student buys a pen and writes with it. This activity is called consumption activity.
III. Answer the following in three or four sentences each:
9. What are man’s economic activities?
Answer: Man’s economic activities can be classified into four different kinds. They are,
- Production Activities: Production activities are those that produce goods and services. For ex: Agriculture, Animal Husbandry, Fishing, Mining, Forest Development, different kinds of industries, Transport, Communication etc.
- Consumption Activities: Goods and services are produced for consumption. Man satisfies his wants by buying goods and services. All these activities are known as consumption activities.
- Exchange Activities: The producers produce goods for the consumers. There is a marketing system to supply the produced goods to the consumers. In this system, activities of collection of goods, transportation, selling and buying take place.
- Distribution Activities: The income that is earned through the production of goods has to be distributed to the various factors of production that have enabled the production. This process involves activities undertaken to determine the price of the factors of production.
10. Why do we need to study Economics?
Answer: We need to study Economics. Because,
- Economics helps us to understand poverty, unemployment, economic inequality and other related problems that we get to see around us, and to find solutions for those problems.
- When we attempt to satisfy our unlimited wants through our limited income, problems of choice crop up. Economics enables us to find solutions in such situations.
- When producers want to create goods and services, they face with questions like – what to produce? How to produce? Whom to produce for? At what price to produce? Knowledge of economics guides them in such situation.
- Economics identifies the reasons for the rise and fall of prices, and the results of such fluctuations. It provides ideas to bring stability in prices.
- Land, water, forests, minerals and other natural resources are limited in quantity. Economics suggests ways to make use of these limited resources with care and efficiency, and also passes them on to the next generation.
11. How has the meaning of Economics changed from time to time?
Answer: The word Economics is derived from the Greek Words Oikos and Nomos. ‘Oikos’ means house and ‘Nomos’ means management. Hence Economics literally refers to ‘Management of a household’. However, It is not confined to the study of household management alone. The meaning and the subject matter of Economics has expanded enormously over the period of time.
Additional Questions.
- What is Production Activity? Give Examples.
Answer: Production activities are those that produce goods and services. For ex: Agriculture, Animal Husbandry, Fishing, Mining, Forest Development, different kinds of industries, Transport, Communication etc.
- What is consumption Activity?
Answer: Goods and services are produced for consumption. Man satisfies his wants by buying goods and services. All these activities are known as consumption activities.
- What is Exchange Activity?
Answer: The producers produce goods for the consumers. There is a marketing system to supply the produced goods to the consumers is called Exchange Activity. In this system, activities of collection of goods, transportation, selling and buying take place.
- What is Distribution Activity?
Answer: The income that is earned through the production of goods has to be distributed to the various factors of production that have enabled the production is called Distribution Activity. This process involves activities undertaken to determine the price of the factors of production.
IV. Activities:
1. List the economic activities of the members of your family are engaged in.
Answer: The economic activities of the members of your family are as follows.
1. Buying Stationary to children.
2. Selling the crops to the market.
3. Purchasing the household items.
4. Buying food items, clothing etc.
5. Exchanging the old items for new.
2. Identify the various economic activities of the people around you or your village are engaged in.
Answer: The various economic activities of the people around me or my village are engaged in are,
1. Buying food items, clothing etc.
2. Exchanging the old items for new.
3. Selling the crops to the market.
4. Selling the agricultural products
5. Buying various agricultural equipment.
6. Maintaining the vehicle and purchasing daily fuel.
7. Selling the Milk to Milk society.
3. List the goods that you consume every day.
Answer: The goods that we consume everyday are,
1. Pen. 2. Scooter 3. T. V
4. Refrigerator 5. Washing machine
6. Mobile phone 7. Books 8. Combs 9. Basic food and water, 10. Hygiene products like soap and toothpaste, 11. Shelter and clothing. 12. Grains, pulses, fruits, vegetables, and dairy products. 13. Notebooks, 14. Glasses, cups 15. Toilet paper, bleach 16. Fruits & Vegetables
4. Observe how farmers decide to grow different types of crops.
Answer: Farmers decide which crops to grow by evaluating land suitability (soil type, topography), climate (temperature, rainfall), water availability, and market demand and pricing. They also consider cost of production, financial incentives like government subsidies, pest management strategies such as crop rotation and the impact of their past experiences and neighbouring farmers’ practices.
