NIOS Class 10th Economics English Medium Solve Assignment (TMA) 2021

 Economics (214) 

Tutor Marked Assignment

Max.Marks: 20

1. Answer any one of the following questions in about 40-60 words.

(a) "Economics is a science of scarcity and choice". Explain.

Ans- The basic economic problem is that needs and wants are unlimited, but resources are scarce. Scarcity means that resources are limited, and because resources are scarce, people must make choices. Economics is the social science that studies how people use scarce resources to satisfy unlimited needs and wants.

2. Answer any one of the following questions in about 40 to 60 words.

(b) Distinguish between labor-intensive technology and capital-intensive technology.

Ans- Labour intensive and capital intensive technology

Explanation:

Labour intensive technology:

• The human efforts applied for the production of any type of product are said to be labor-intensive production.
• The production of goods or services primarily depends on labor.
• Can be used to produce few products on a small scale.

Capital intensive technology:

• Machines, vehicles, and other equipment used for the production of any type of product are said to be capital-intensive production.
• Capital is the major resource used in production.
• Can be used to produce goods on large scale.

3. Answer anyone out of the following questions in about 40 to 60 words.

(b) Goods and services play an important role in an economy. Explain.

Ans- The goods and services form the main framework of an economy. The people using the goods and services are the consumers and they have numerous needs and requirements. The companies look at the best possible methods of satisfying the consumers with their products and services

Explanation:

• When the goods are manufactured there is a certain cost that is involved in their production and distribution to the end-users. The manufacturers look at maximizing their profits by selling the goods and recovering the production costs.
• The money that the manufacturer receives for the goods or services is defined by the agreement between the buyers and the sellers. There are different channels of distributing the goods through middlemen, retailers, wholesalers, agents, and more.
• The goods manufactured are the commodities that the consumers require and the services are the various forms of serviceable activities that are beneficial for the consumers.

4. Answer anyone out of the following questions in about 100 to 150 words.

(a) How does positive economics differ from normative economics? Explain with illustrations.

Ans-

Positive Economics:

Positive economics is a part of economics that contemplates the explanation and elucidation of economic occurrence. It concentrates on certainty and cause-and-effect behavioral association and incorporates the development and trial of economics thesis. 

It is the study of economics grounded on intentional analysis. Most economists today concentrate on the positive economic analysis, which follows what is and what has been materializing in an economy as the rationality for any statement about the upcoming days. Positive economics stands in contradiction to normative economics, which uses value discernments. 

Normative Economics:

Normative economics is an outlook on economies that contemplates normative or ideologically dictatorial, discernments toward economic enhancement, statements, investment projects, and framework Disparate to positive economies, which depends on intentional data analysis. normative economics decisively solicitudes itself with value discernments and statements of what has to be rather than certitude based on cause-and-effect declarations. Normative economics manifests ideological judgments about what may be the outcome in an economic pursuit if public policy changes are made.

Difference between Positive And Normative Economics.

Let us discuss these points in detail

1. What to produce?

It is one of the central problems that arise in an economy. It is related to the type of goods and services that need to be produced and the quantity to be produced

Since resources are in limited quantities, producing more of one good will result in less production of the other.

2. How to produce?

This aspect deals with the process or technique by which the goods and services can be produced Generally, there are two techniques that can be used for producing, which are:

1. Intensive Techniques 

2. Capital intensive Techniques

The choice of technique for production depends on the availability of the resource in that nation, and hence resource allocation becomes a challenge. 

3. For whom to produce?

This problem deals with determining the people who will be the final consumers of the goods produced. As the resources are scarce in an economy, it becomes difficult to cater to all sections of society.

It leads to the creation of a problem of choice in an economy as a good that may be in demand among section, may not be in demand for Another section of the society.

5. Answer anyone out of the following questions in about 100 to 150 words.

(b) Explain the central problem of an economy with the help of an example.

Ans- The basic economic activities of life are production, distribution, and disposition of goods and services. A society will be facing a scarcity of resources during the time of fulfillment of these activities.

As such scarcity is evident, due to the availability of limited resources, and human needs having no limit. Therefore, this variation between the supply and demand leads to the formation of central problems of an economy.

The central problems of an economy revolve around these factors.

1. What to produce?

2. How to produce? 

3. For whom to produce?

Let us discuss these points in detail.

1. What to produce?

It is one of the central problems that arise in an economy. It is related to the type of goods and services that need to be produced and the quantity to be produced.

Since resources are in limited quantities, producing more of one good

2. How to produce?

This aspect deals with the process or technique by which the goods and services can be produced. Generally, there are two techniques that can be used for producing, which are:

1. Labour Intensive Techniques

2. Capital Intensive Techniques

The choice of technique for production depends on the availability of the resource in that nation, and hence resource allocation becomes a challenge.

3. For whom to produce?

This problem deals with determining the people who will be the final consumers of the goods produced. As the resources are scarce in an economy, it becomes difficult to cater to all sections of society.

It leads to the creation of a problem of choice in an economy as a good that may be in demand among a section, may not be in demand for another section of the society.

Such a situation arises due to the difference in income distribution among the population, which causes a change in buying behavior.

With this, we conclude the concept of central problems of an economy. ON Stay tuned to BYJU’S for more such exciting updates.

6. Prepare any one project out of the following projects given below.

(b) Calculate marginal product and average product with the help of the following table.

Ans-