Karnataka Board Class 8 Economics Chapter 2 Meaning and Types of Economy Solution Exercise Question and Answer
(I) Fill in the blanks with suitable words.
(1) Economy refers to the nature of organization of _____.
Ans: – Economic activities
(2) NITI Ayog was set up in ______ .
Ans: – 2015
(3) Free enterprise is a basic feature of _____ economy.
Ans: – Capitalist
(4) Good example of capitalist economy is _____ .
Ans: – Private property
(5) Co-existence of public and private sectors is seen in _____.
Ans: – Mixed Economy
(II) Answer the following after discussing them in groups:
(1) What is an economy?
Ans: – Economy is a dynamic entity. It can be described as a man-made organization for the satisfaction of human wants. Production consumption an investment are the crucial activities of an economy.
(2.) Mention the features of capitalist economic system.
Ans. The features of capitalist economy are as follows –
(i) First of all private property which is used for ones own benefit. The incentive to acquire and accumulate wealth is very strong.
(ii) Free of enterprise which means free to sell products in the markets of their choice for earning the highest possible profit.
(iii) Consumers Sovereignty means in a capitalist system, production is guided by consumers choices.
(iv) Profit motive means producers motivated to maximize their profit by minimizing cost and maximizing revenue.
(v) There is an intense competition in capitalist system. The market forces of determined the price.
(vi) And absence of government interference.
(4.) What is planning?
Ans. Planning is the process of shaping thinking outwardly in right way. Planning is needed to meet specific goals. Planning is some of the right decision taken by the government that will benefit the public. It is the systematically actions to achieve predetermined goals in the interest of all.