This PSEB 10th Class Social Science Notes Economics Chapter 1 Basic Concepts will help you in revision during exams.
PSEB 10th Class Social Science Notes Economics Chapter 1 Basic Concepts
→ Basic Concepts: Basic concepts are those words that have special meaning in Economics.
→ National Income: National Income is the earned income by the normal residents of a country during one year.
→ Per Capita Income: It is the average income earned by the people of a country in a definite period of time.
→ Consumption: Consumption is the expenditure made on consumption during one year in an economy.
→ Saving: The difference between income and consumption is called saving.
→ Investment: When production is more than consumption during an accounting year, that is called investment.
→ Capital Formation: An addition to capital stock is called capital formation.
→ Disguised Unemployment: Disguised unemployment is that situation when more people are doing the same work which can be done by a few people.
→ Full Employment: Full employment is that situation in which all the people who are willing to work at existing wage rates and they get work without any difficulty.
→ Structural Unemployment: It rises due to the structural changes in the economy, like due to the exports, etc.
→ Technical Unemployment: It arises due to the changes in the techniques of production.
→ Inflation: Inflation means a constant rise in prices.
→ Money Supply: It means currency and deposits of banks available to the people of the country.
→ Government Budget: Government Budget is the detailed account of its estimated revenue and expenditure.
→ Deficit Financing: It is the method by which government meets the budgetary deficits by taking loans from the Central Bank.
→ Public Finance: Public Finance means the financial sources of the government, i.e. revenue and expenditure.
→ Public Debt: Public debt means all types of loans taken by the Government.
→ Poverty Line: The poverty line is the method of measuring the poverty of any country.
→ Growth Rate: Growth rate implies that in comparison to a particular year with any other year how much percentage change took place in any economic element.
→ Foreign Aid: It means capital investment, loans, and grants in any country by foreign governments, individual banks, and international institutions.
→ Balance of Payments: Balance of Payments is the account of receipts and payments of the govt, of one country from other countries during a period of one year.
→ Monetary Policy: It is related to affecting the level and structure of aggregate demand by controlling the rate of interest and the availability of credit.
→ Fiscal Policy: The policy related to the government’s income and expenditure is called fiscal policy.