PSEB 10th Class SST Solutions Economics Chapter 2 Infrastructure of the Indian Economy

Punjab State Board PSEB 10th Class Social Science Book Solutions Economics Chapter 2 Infrastructure of the Indian Economy Textbook Exercise Questions and Answers.

PSEB Solutions for Class 10 Social Science Economics Chapter 2 Infrastructure of the Indian Economy

SST Guide for Class 10 PSEB Infrastructure of the Indian Economy Textbook Questions and Answers

Very Short Answer Type Questions

Question 1.
What is meant by infrastructure?
Answer:
Infrastructure of the economy signifies that part of the capital stock of the economy is necessary from the viewpoint of providing various types of services.

Question 2.
What are the main components of economic infrastructure in India?
Answer:
The main components of economic infrastructure in India are :

1. Transport and communication
2. Electric power
3. Irrigation
4. Banking and financial institutions.

Question 3.
Name the various modes of transport in India.
Answer:
The following are the important means of transport in India :

• Rail transport
• Road transport
• Water transport
• Air transport.

Question 4.
What do you main by irrigation?
Answer:
Irrigation means providing the necessary water to the cultivable land through man-made or artificial means. Due to uneven, irregular and uncertain rainfall, irrigation assumes added importance.

Question 5.
What are the major sources of irrigation in India?
Answer:
Tubewells, river, tank etc. are the major sources of irrigation in India.

Question 6.
Write a short note on Reserves Bank of India.
Answer:
The reserve Bank of India (RBI) is the Central Bank of India, which was established on April 1, 1935 monetary institution which supervise, regulates controls and develops the monetary and financial system of the country. The Reserve Bank of India is fully owned and operated by the Government of India.

Question 7.
Write a note on the Commercial Bank of India.
Answer:
A Commercial Bank is a financial institution which performs the functions of accepting deposits from the general public and giving loans for investment with the aim of earning profit. Commercial Banks plays a singificant role in fulfilling the short term and medium term finacial requirements of Industries. Commercial Back can be described as a financial institution, that offers basic investment products like a savings account, current account, etc to the individuals and corporates.

Question 8.
What are the specific banking institutions of India?
Answer:
The specific banking institutions of India are :

• Industrial Development Bank of India
• Industrial Finance Corporation of India
• Land Development Banks
• Co-operative Banks
• Regional Rural Banks
• National Bank For Agriculture and Rural Development (NABARD)
• Export-Import Bank (Exim Bank),

Question 9.
What do you mean by consumer protection? What are its main methods?
Answer:
Consumers’ protection means to prevent the exploitation of the consumers from the unfair trade practices of the producers of consumer goods.

Consumer protection methods are:

• MRTP Act was passed in 1969.
• Consumer Protection Act 1986 was passed.
• Consumers’ Disputes Redressal forums have been established.

Question 10.
Write a short note on Public Distribution System.
Answer:
Through Public Distribution System, Government distributes the necessities of life; like foodgrains, sugar, kerosene, coarse cloth etc. at concessional prices through Fair Price Shops at fixed quantities to the general public especially to the poor sections of the society.

Short Answer Type Questions

Question 1.
What do you mean by infrastructure? Why- is it required?
Answer:
Infrastructure is that part of the capital stock of the economy which is necessary from the viewpoint of providing various kinds of services. In other words infrastructure means those activities, facilities and services which are helpful in the operation and development of other sectors for example, Roads, Rails and Buses offering transport services. Canals and dams facilitating irrigation, etc.

It is required for the development of the country. Infrastructure like electricity, transport and communication are important for the development of every country.

Lack of infrastructure facilities will create hurdles in the development of industries and agriculture sectors. As a result of it their rate of growth will come down. Therefore, in every underdeveloped country there is a need of availability of infrastructure in a sufficient quantity which will be helpful in acceleration of their development.

Infrastructure is required to increase production and decrease cost.

Question 2.
What are the main kinds of infrastructure in India? Explain.
Answer:
That part of the capital stock of the economy which provides direct services to the system of production and distribution is called the economic infrastructure of the economy.

The main constituents of economic infrastructure in India are as follows :

• Transport and Communication
• Electric Power
• Irrigation
• Banking and other Financial Institutions.

Economic infrastructure like transport, communication, power, irrigation, banking etc. have played a very important role in the economic development of our country.

Question 3.
What are main monetary institutions of India?
Answer:
The main monetary institutions in India are:

• Moneylenders
• Reserve Bank of India
• Commercial Banks
• Specialised Banking Institutions :
  (a) Industrial Development Bank of India
  (b) Regional Rural Banks
  (c) Export-Import Bank of India (Exim Bank)
  (d) Land Development Banks
  (e) Co-operative Banks
  (f) National Bank for Agriculture and Rural Development (NABARD)
  (g) Industrial Finance Corporation of India etc.
• Non-Banking Financial Institutions:
  (a) Unit Trust of India
  (b) Life Insurance Corporation of India
• Stock Exchanges.

Question 4.
What do you mean by consumer exploitation? What are the main methods of consumer protection?
Answer:
Consumers exploitation means the exploitation of the consumers from unfair trade practices of the producers of consumer goods. Trading classes are putting their all out efforts to exploit the consumers as they are the most confused and unorganised persons in modern Indian Economy. Adulteration, substandard packed goods, use of non-standard weights or misleading and fabricated advertisements are such activities which exploit the consumers to a large extent.

Methods of Consumers’ Protection. In order to protect consumers’ interest, the govt, has enacted the following legislations:

• Essential Commodities Act, 1955.
• The Standards of Weights and Measures Act, 1976.
• The Prevention of Food Adulteration Act, 1976. ‘
• The Monopolies and Restrictive Trade Practices Act, 1969.
• The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980.
• Consumers’ Protection Act, 1986.

In order to redress the grievances of the consumers at very low expenses and for their early disposal ‘Consumer Disputes Redressal Forums’ have been established at the district, state and national levels. Along with this, consumer protection councils have also been established to protect the interest of the consumers. They can lodge a complaint. Besides this consumer education and consumer organisations also play a vital role to protect the interests of the consumers.

Question 5.
What do you mean by Public Distribution System? Explain the present position of Public Distribution System in India.
Answer:
Public distribution system signifies a system through which the govt, of a country makes provision to supply essential items like foodgrains, sugar, kerosene, etc. to its people, especially the poor people, in fixed quantity at controlled prices through fair price shops.

There are three main constituents of public distribution system in India :
1. Public Procurement System. In 1988, over 14 million tonnes of foodgrains were procured by the govt, at procurement prices. In 2006, this figure rose to 26.4 million tonnes.

2. Buffer Stock. Black-marketing in the foodgrains can be checked if the govt, has buffer stock of foodgrains and adequate storage facilities. In India, we have many warehouses in the public sector. Important among them are the warehouses of Food Corporation of India. The Corporation has got its warehouses throughout India. It stores agricultural goods and releases stock under public distribution system.

3. Fair-Price Shops. The system of public distribution in India operates fairly successfully through a network of fair-price shops selling foodgrains, sugar, kerosene and soft coke. At present, we are having around 4.37 lakh fair price shops. In 1988, 23 million tonnes of foodgrains and in 2006,26.8 million tonnes of foodgrains were distributed through these fair-price shops.

PSEB 10th Class Social Science Guide Infrastructure of the Indian Economy Important Questions and Answers

Answer the following questions in one word or one line :

Question 1.
Define Consumer.
Answer:
When we buy and use any commodity we become consumer.

Question 2.
State any one component of economic infrastructure.
Answer:
Irrigation.

Question 3.
Name any one mode of Transport in India.
Answer:
Railway.

Question 4.
Which are the two main modes of Irrigation in India?
Answer:
Rain and Rivers.

Question 5.
When was R.B.I. established?
Answer:
1935.

Question 6.
When was Consumer Protection Act established?
Answer:
1986.

Question 7.
State any one function of R.B.I.
Answer:
It issues notes.

Question 8.
State the name of the apex bank of India.
Answer:
R.B.I.

Question 9.
State any one specific banking institution in India.
Answer:
NABARD.

Question 10.
State the full form of P.D.S.
Answer:
Public Distribution System.

Question 11.
Name one infrastrucuture of the economy.
Answer:
Transport.

Question 12.
What is stock exchange?
Answer:
Where securities are bought and sold.

Question 13.
Name the non-banking financial institution in India.
Answer:
L.I.C.

Question 14.
Name any one multipurpose project in India.
Answer:
The Bhakra-Nangal project.

Question 15.
Name one public sector shipping company in India.
Answer:
Mugal lines.

Question 16.
Name the important mean of communication.
Answer:
Telephone.

Question 17.
Name the source of electric power.
Answer:
Thermal Power.

Question 18.
What is a commercial bank?
Answer:
It generally gives short term loans.

Question 19.
What is the objective of multipurpose river valley projects?
Answer:
Production of hydro electricity.

Question 20.
State any one feature of Consumers’ Protection Act, 1986.
Answer:
To seek redressal against unfair trade practices.

Question 21.
State any One cause for the need of PDS.
Answer:
Inadequate shortage and marketing facilities.

Question 22.
What is Irrigation?
Answer:
It means providing the necessary water to the cultivable land.

Question 23.
Name some infrastructures of the economy.
Answer:
Transport and communication, power, irrigation, banking and financial institutiolis, Education, Health and family welfare, housing and other civic amenities.

Question 24.
What is meant by economic infrastructure?
Answer:
That part of the capital stock of the economy which is necessary for providing-the different types of direct services to the system of production and distribution is called the economic infrastructure of the economy.

Question 25.
What is meant by transport system of a given country?
Answer:
All those means which help in the transportation of goods and people from one place to another constitute the transport system of a country.

Question 26.
Name the important means of communication.
Answer:
Postal services, telegram, telephone, radio, television, newspapers, etc.

Question 27.
Name two public sector shipping companies in India.
Answer:

1. Shipping Corporation of India and
2. Mugal Line.

Question 28.
Name any two multipurpose projects in India.
Answer:

1. The Bhakra-Nangal Project and
2. The Damodar Valley Project.

Question 29.
Name any one specialised banking institution in India.
Answer:
Industrial Development Bank of India.

Question 30.
Name the important non-banking financial institutions in India.
Answer:

1. Unit Trust of India and
2. Life Insurance Corporation of India.

Question 31.
What is meant by Stock Exchange?
Answer:
A market in which securities are bought and sold is known as stock exchange or share market.

Question 32.
Write any one main function of R.B.I.
Answer:
To issue notes.

Question 33.
What is meant by Consumer Education?
Answer:
By consumer education we mean the education to be imparted to the consumers which may enable them to safeguard their interest and help them to become rational consumers.

Question 34.
Name the important means of transport.
Answer:
Railways, Road, Water and Air transport are the main means of transport.

Question 35.
Name the sources of electric power.
Answer:
Thermal power-, Hydel power and Nuclear power are the sources of power in India.

Question 36.
What are the sources of irrigation?
Answer:
Rainfall, Wells, Tubewells, Ponds are the main sources of irrigation.

Question 37.
What is the name of Central Bank of India?
Answer:
Reserve Bank of India.

Question 38.
When was R.B.I established?
Answer:
1935.

Question 39.
What are Commercial Banks?
Answer:
Commercial Banks are those banks which generally give short term loan.

Question 40.
Name two Non-Banking institutions.
Answer:
L.I.C., U.T.I.

Question 41.
When was Consumer Protection Act launched?
Answer:
1986.

Question 42.
What do you mean by Public Distribution System?
Answer:
Supply of essential commodities to the people through government agencies is known as Public Distribution System.

Question 43.
Which is one mode of Electric power in India?
Answer:
Thermal Power.

Question 44.
What are the major sources of Power in India?
Answer:
The major sources of Power in India are:

1. Thermal Power
2. Nuclear Power
3. Hydel Power.

Question 45.
How many commercial banks are nationalised?
Answer:
In 1969, fourteen banks were nationalised, 6 more banks were nationalized inl980 which accounted for 20. But now its number is 19.

Question 46.
Write the name of India’s Central Bank.
Answer:
Reserve Bank of India.

II. Fill in the blanks :

Question 1.
RBI was established in ___________ (1945 / 1935)
Answer:
1935

Question 2.
When we use any commodity we become__________(Producer / Consumer)
Answer:
Consumer

Question 3.
Consumer Protection Act was estabhshed in_________year. (1985 / 1986)
Answer:
1986

Question 4.
_______ is the Apex Bank of India. (SBI / RBI)
Answer:
RBI

Question 5.
________ gives short terms loans. (Central bank / Commercial bank)
Answer:
Commercial bank

Question 6.
NABARD was estabhshed in_______year. (1982 / 1999)
Answer:
1982

Question 7.
Irrigation is a component of __________ infrastructure. (Social / Economic)
Answer:
economic

Question 8.
_______ issues notes in a country. (RBI / SBI)
Answer:
RBI.

III. Multiple Choice Questions :

Question 1.
State any one function of RBI.
(a) Note issue
(b) Bank of the Govt.
(c) Banker’s Bank
(d) All of the above.
Answer:
(d) All of the above.

Question 2.
When was RBI established?
(a) 1925
(b) 1935
(c) 1945
(d), 1955.
Answer:
(b) 1935

Question 3.
When was Consumer Protection Act established?
(a) 1980
(b) 1982
(c) 1986
(d) 1988.
Answer:
(c) 1986

Question 4.
When was NABARD established?
(a) 1982
(b) 1986
(c) 1988
(d) 1989.
Answer:
(a) 1982

Question 5.
Which is the Central Bank of India?
(a) SBI
(b) PNB
(c) RBI
(d) All of the above.
Answer:
(c) RBI

Question 6.
What are the main components of economic infrastructure in India?
(a) Banking
(b) Electric power
(c) Irrigation
(d) All of the above.
Answer:
(d) All of the above.

Question 7.
What are the specific Banking Institutions in India?
(a) Regional Rural Bank
(b) NABARD
(c) Exim Bank
(d) All of the above.
Answer:
(d) All of the above.

Question 8.
PDS stands for :
(a) Public Demand Supply
(b) Public Distribution System
(c) Private Demand and supply
(d) None of these.
Answer:
(b) Public Distribution System

True / False :

Question 1.
RBI was estabhshed in 1935.
Answer:
True

Question 2.
SBI is the apex bank of India.
Answer:
False

Question 3.
There are three sources of electricity in India.
Answer:
True

Question 4.
NABARD was estabhshed in 1992.
Answer:
False

Question 5.
COPRA was implemented in 1986.
Answer:
True

Short Answer Type Questions

Question 1.
What is the need for infrastructure?
Answer:
The prosperity of a country depends directly upon the development of agriculture and industry. Agricultural production, however requires power, credit transport facilities etc. Industrial production requires not only machinery and equipment but also skilled man-power, management, energy .banking facilities, marketing faclities, transport services, communication facilities etc.All these facilities and services constitute collectively the infrastructure of the economy and the development and expansion of these facilities are an essential pre-condition for increasing agricultural and industrial production in a country.

Question 2.
What is the importance of means of transport in a given economy?
Answer:
Transportation is the most important constituent of economic infrastructure. It helps trade,commerce and industry. Transportation connects one place with the other. It reduces regional imbalances. It carries passengers and goods. It adds directly to our economic structure i.e. the process of production and distribution. It has been rightly said that “If agriculture and industry are regarded as the body and bones of the economy, transport constitutes its nerves.”

Question 3.
Write a short note on Railways as a means of transport in India.
Answer:
In India railway services were started on April 16,1853 when the first train was run between Bombay (Muihbai) and Thane. Now Indian railways are first in Asia and fourth in the world. Indian railways have a route length of nearly 62,759 kilometres. Indian railways rim 13,000 trains everyday connecting 7056 railway stations.

Question 4.
Write a short note on air transport in India.
Answer:
Air transport is the fastest and costliest means of transportation. There are two public sector companies for air transportation in India-Indian Air Lines Corporation and Air India International. Some private sector companies have also been established sincel992. There are four international aerodromes in India at Delhi, Mumbai, Chennai and Kolkata. In recent years, important policy decisions have been taken to speed up the development of civil aviation in the country.

Question 5.
Write a short note on Communication system in India.
Answer:
The Communication system comprises posts and telegraphs, telecommunication system, broadcasting, television and information services. Since 1950-51, the postal network has been expanded throughout the country, and in recent years, with special emphasis on the rural, hilly and tribal areas. As far as the telecommunications are concerned, India has a network comprising over 18,000 exchanges with a capacity of 84 lakh lines and 72 lakh working telephones. The network has been expanding at an annual rate of 15 to 17 per cent. The outlay for the telecommunication in the Ninth Plan was over? 30,000 crore.

Question 6.
Highlight the main sources of power in India.
Answer:
There are three main sources of power in India:

• Thermal power stations-using coal or oil.
• Hydro-electric power stations-using potential power of fast-flowing rivers or high dams.
• Nuclear power or atomic power-India is one of the few countries which have developed their nuclear capacities. At present, we are having five atomic power stations.

In our economy, we traditionally had thermal power which still accounts for the largest part of our electricity generation. With the emergence of the great multi-purpose river- valley projects, we have also developed hydroelectric power on a big scale. Finally, we also went in for nuclear power.

The priority for power distribution in our economy is shifting to the rural areas.

Question 7.
What are the objectives of multi-purpose river-valley projects?
Answer:
Multi-purpose projects are so named as they aim at serving several purposes at one and the same time. The important objectives of these multi-purpose river-valley projects are :

• Production of hydroelectricity.
• To help in storing water, which can be used for irrigation at the time of need.
• To prevent erosion of soil and conserve land.
• To promote fish rearing and navigation.
• To help in checking floods.
• To promote tourism in the country, etc.

Question 8.
Highlight the various features of the Consumers’ Protection Act, 1986.
Answer:
Consumers’ Protection Act, 1986 is the latest act which safeguards the interests of the consumers in the following ways :

1. Protects against the marketing of commodities hazardous to life and property.
2. Informs about the quality, purity, potency, weight and price of the commodity.
3. Ensures the availability of goods at a competitive price.
4. Seeks redressal against unfair trade practices.
5. Provides setting up of:
   (a) Consumers’ forum at district level.
   (b) State forum and commission at state level.
   (c) National Consumers’ Grievances Redressal Cell at national level.

Question 9.
Write a short note on need for public distribution system in India.
Answer:
The forces of demand and supply do not always achieve the socially desirable objectives, so it becomes necessary that the Govt, should interfere in the production and distribution of commodities.

The necessity of public distribution system in India is because of the following reasons:

• Limited resources and means of production.
• Inadequate production.
• Inadequate storage and marketing facilities.
• Corrupt practices of producers and traders i.e. hoarding and black-marketing.
• Inequality of income and poverty leading to starvation.

Question 10.
Briefly describe the economic infrastructure of transport in India.
Answer:
Transport. After the railways, the principal mode of transport in our economy is the roadways. In fact, over the last two decades, the heavy trucks on our highways linking the main industrial centres have become quite a match for the railways in many spheres. Passenger bus services also compete successfully with the railways in many regions. All this has come about mainly because of the improved network of well-made roads that make up a new and important part of our economic infrastructure today.

Besides railways and roads, our economy is served by coastal shipping, inland waterways and, of course, domestic airlines as the other modes of inland transportation. International shipping is handled by the major ports of the country like Mumbai, Kolkata, Haldia, Chennai, Mangalore, Marmugao and Vishakhapatnam and many minor ports. The Air India and other international airlines operate through the airports maintained by the International Airports Authority of India.

Question 11.
Describe the economic infrastructure of Power in India.
Answer:
The rate at which electric power is consumed by an economy is often an index of its state of industrialisation. The power produced and consumed per head of population in our country is very low indeed, but it is rising fast. This is an indication that modern industries are growing in the economy and the country is developing.

In our economy, we traditionally had thermal power which still accounts for the largest part of our electricity generation. With the emergence of the great multi-purpose river- valley projects we also developed hydro-electric power on a big scale. Finally, we also went in for nuclear power.

The priority for power distribution in our economy is shifting to the rural areas.

Question 12.
Describe the economic infrastructure of Irrigation in India.
Answer:
Irrigation provides an important input in the production of most crops, particularly in areas where rains are scarce or highly irregular. For centuries our economy has depended on fairly extensive systems of man-made irrigation besides natural irrigation for agriculture. We have dug wells, tanks and canals not only for the supply of our drinking water but also for watering our cultivated land from time immemorial. But whether natural or man-made, irrigation in most parts of our country has always been partially rain-fed. Rains, however, in India are mostly seasonal and dependent on the monsoons and the monsoons, till this day, are one of the world’s most difficult to understand weather phenomena. Thus, inspite of the introduction of modem technology and management techniques, Indian agriculture still is a gamble, though the magnitude of the uncertainty has diminished.

Long Answer Type Questions

Question 1.
Explain the role of transport in economic development.
Answer:
Role of Transport in Economic Development:
Transport, as said, is called as the lifeline of the country. It has a vast impact on the economic development of the country. The importance of transport with reference to economy is as follows :

1. Means of transport enable the maximum use of the resources because the movement of the sources is possible to the various parts of the country.
2. With the help of transport we can grow new markets and specialization as resources can be moved from different areas of the world.
3. Labour and capital become mobile. As a result the regional imbalances are removed.
4. Due to transport means the agricultural sector has been transferred.
5. Due to means of transport industries have been developed as they require cheap, best and faster means of transport for their growth.
6. Due to easy means of transport there has been a manifold increase in the encouragement to the tourism department.
7. Due to means of transport the gaps between the places have been narrowed and it has improved the social relationships.
8. Means of transport are of strategic importance as they provide internal security as well as external security.
9. Means of transport help in checking the fluctuation in prices thereby maintaining the economic stability.
   Hence, we can conclude that thinking of economic activities in the absence of means of transport will be such as flowers without fragrance.

Question 2.
Explain the main functions of central bank.
Answer:
The main functions of central bank are as follows :

1. Bank of note issue. In the modern time, issuing of notes is the main function of central bank of every country in the world. Central bank has the monopoly in this regard. In India, RBI issues notes as a central bank of the country except one rupee note which is issued by the ministry of finance, government of India.
2. Banker, Agent and Advisor to the Government. The central bank acts as a banker, agent and advisor to the government.
3. Bankers’ Bank. Central bank acts as a banker of all other banks in the country. Central bank keeps relation with the banks in the same way as commercial banks keep relation with their customers.
4. Lender to the Last Resort. In a time of crisis, the central bank acts as a lender to the last resort. It provides loans to commercial banks when they are in deep trouble.
5. Custodian of the Foreign Exchange Reserves. The central bank acts as a custodian of the foreign exchange reserves of the country.
6. Custodian of Cash Reserves of the commercial banks. The central bank also keeps the cash reserves of the commercial banks.
7. Bank of central clearance, settlement, and transfer. A central bank is an institution where all the transactions of commercial banks are cleared, settled, and transferred very easily.
8. Control of credit. The central bank has got so many instruments to control credit like bank rate, open market operation, change in cash reserve ratio, credit rationing, moral persuasion, and direct actions, etc.