I. Fill in the blanks
1) Structural/ positive change is related to ______ activity
2) Primitive economy mainly depended on ____________
3) In simple economy there will be____________ sectors.
4) The word static is derived from _________
5) The Industrial revolution happened in ______________
Ans: (1) economic; (2) agriculture; (3) household and manufacturing; (4) Greek word 'statika': (5) Britain.
II. Answer the following in a sentence each:
1. What is meant by structural/ positive change?
Ans: Each economic structure of every Economy is subjected to transformation continuously. The nature of employment, ratio of production, level of income, utilization of technology, changes in the life style of an economy is identified as Structural transformation.
2. State the features of primitive economy.
Ans: Primitive economy mainly depended on agriculture. People were mainly depended on agriculture for their livelihood. Barter system was there. Division of labour was not well organized and market was not there. In total people were leading simple life with limited wants.
3. How did capitalism emerge?
Ans: Industrial Revolution which happened in Britain during 17th and 18th century is spread to other parts of the world. This Revolution created capitalism. Feudal lords who were the owners of the land, tried to invest their capital to set up industries and came to be known as Capitalists.
2. What are the sources of Income?
Ans: In a simple economy, the source of income are available from two sectors, namely, household sector and manufacturing sector (firms). They create income with mutual exchange. The income for the government is by collecting taxes on both households and industrial units.
3. What are the source of Employment?
Ans: The sources of employment for the individuals is in the three sectors of economy - primary sector, secondary sector and tertiary sector that is in services.
6. What is meant by static and dynamic economics?
Ans: The word 'static' is derived from Greek word 'statika', which means 'stand still'. In economics it refers to a situation without any change. The static economy is timeless economy where there are no changes. Dynamic economics shows the study of change in the economy.