1. The correct answer is (A). In a barter system, trade depends on the “double coincidence of wants,” meaning each person must have something the other wants. This makes trade complex and time-consuming, as it’s difficult to find suitable partners. Such limitations reduce economic activity and efficienRead more

    The correct answer is (A). In a barter system, trade depends on the “double coincidence of wants,” meaning each person must have something the other wants. This makes trade complex and time-consuming, as it’s difficult to find suitable partners. Such limitations reduce economic activity and efficiency, highlighting why money was introduced — to act as a common medium of exchange simplifying transactions.

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  2. The correct answer is (C). Globalisation expands when the government reduces trade barriers, lowers import and export taxes and removes restrictions on foreign investment. These policies make it easier for foreign companies to enter domestic markets, encouraging international trade and investment. ORead more

    The correct answer is (C). Globalisation expands when the government reduces trade barriers, lowers import and export taxes and removes restrictions on foreign investment. These policies make it easier for foreign companies to enter domestic markets, encouraging international trade and investment. On the other hand, reducing competition among producers (Statement II) would hinder globalisation by limiting economic freedom and innovation.

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  3. Sustainable development ensures that present development does not compromise the future. It raises new challenges in planning, resource management and equity, changing how development is approached. Points with explanation: Resource conservation: Using solar energy and rainwater harvesting reduces nRead more

    Sustainable development ensures that present development does not compromise the future. It raises new challenges in planning, resource management and equity, changing how development is approached.

    Points with explanation:

    • Resource conservation: Using solar energy and rainwater harvesting reduces natural resource depletion.
    • Environmental protection: Reduces pollution, deforestation and climate impact.
    • Long-term planning: Development strategies must consider future generations’ welfare.
    • Social equity: Benefits should reach all communities, including marginalized groups.
    • Example: Promoting organic farming ensures economic growth while protecting soil and water
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  4. Banks play a vital role in managing public money. They accept deposits safely and lend money to individuals and businesses, supporting economic growth. Points with explanation: Safe storage of money: Protect deposits from theft and misuse. Lending: Loans to farmers, businesses and households promoteRead more

    Banks play a vital role in managing public money. They accept deposits safely and lend money to individuals and businesses, supporting economic growth.

    Points with explanation:

    • Safe storage of money: Protect deposits from theft and misuse.
    • Lending: Loans to farmers, businesses and households promote economic activities.
    • Interest system: Depositors earn interest; banks earn by lending, maintaining balance.
    • Financial services: Provide payment facilities, credit and savings accounts.
    • Economic growth: Mobilized funds are invested in productive sectors, creating employment and improving financial stability.
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  5. MNCs have a significant impact on India’s economy, offering both opportunities and challenges. They bring capital, technology and employment while enhancing global business connections. Investment: Foreign capital supports industrial expansion. Technology transfer: Modern techniques improve productiRead more

    MNCs have a significant impact on India’s economy, offering both opportunities and challenges. They bring capital, technology and employment while enhancing global business connections.

    Investment: Foreign capital supports industrial expansion.

    Technology transfer: Modern techniques improve productivity and skills.

    Employment: Create jobs in factories, IT and services.

    Exports and trade: Promote global trade and economic integration.

    Challenges: Local businesses may face competition; profits are partly sent abroad.

    Regulation needed: Government policies can balance benefits and protect domestic industries.

     

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