CBSE Class 10 Social Science Economics Revision Notes

Class 10 Economics Notes CBSE

Social Science is an interesting subject that provides students with an insight into the social fabric of society. Economics is the study or principles of the way business, money and industry are organised. 

Extramarks provides students with the CBSE Class 10 Economics Notes that can aid their test and exam preparations. 

Class 10 Economics comprises five chapters that throw light on the economic condition of the country. The students are familiarised with the sectors of the Indian economy, consumer rights, globalisation and the Indian economy and money and credit.

Notes for CBSE Class 10 History PDF Download

Class 10 Economics Chapters

In Class 10, students will study the following chapters of Economics given in the CBSE syllabus:-

Chapter 1- Development

Chapter 2- Sectors of the Indian economy

Chapter 3- Money and Credit

Chapter 4- Globalisation and the Indian economy

Chapter 5- Consumer Rights

Economics Class 10 Chapter 1- Development

A general overview

The first chapter talks about the several facets of development. One comes to know that every individual has different connotations of development with varying development goals. 

The development of a nation is paramount and must be pondered over apart from personal growth.

Definition of development

The definition of development encapsulates people’s economic growth and considers their basic needs such as education, water, food, health, lifestyle, and shelter.

The salient feature of a developed nation or person is to be updated and moulded according to the times.

For example, a dam has to be constructed to provide electricity to the village dwellers. This would mean undertaking construction activities on a large landmass, which might lead to development but jeopardise the natural resources.

Importance of money

To be developed means having good earnings. Money is required to fulfil people’s daily needs and purchase the things that they desire.

In addition, it empowers people and gives them the freedom and security to maintain a quality lifestyle. A decent income is required for survival and sustenance. 

The concept of national development

The term national development defines a country’s ability to upgrade the living standards of its residents. Moreover, it could increase the per capita income and improve people’s living conditions, which might include their education, food, medical service, and regular aid.

Some useful terms

The countries that have a higher income with all their people employed are called developed countries.

• National income

The national income is the sum of the total value of all the country’s goods and services produced in a year.

• Per capita income

 Per capita income refers to the total earnings of a country divided by the whole population. The higher the per capita income, the better the country’s standard of living.

According to ground-breaking research, Goa has the highest per-capita income and Bihar has the lowest per-capita income.

• Average income

The average income refers to the ratio of the overall income of the country to the overall population of the country.

• Literacy rate

The literacy rate is the total number of children over the age of 7 who can read, write, and understand things. Kerala has the highest literacy rate of 96.2%, whereas Andhra Pradesh has the lowest literacy rate of 66.4%.

• Infant mortality rate

The infant mortality rate refers to the total number of children that die at 1 year of age as a proportion of 1000 births in one year. 

• Human Development Index

The United Nations Development Programme prepares the report on the HDI, which talks about the level of human development in a country in a year.

• Body Mass Index

It is a measure to find out about the health of an individual by calculating the person’s weight divided by the square of their height. 

• Public facilities

The government provides several public facilities, such as schools, colleges, transportation, community halls, and residences.

• Sustainable development

This form of development talks about the process of upgradation by using non-renewable sources to meet survival needs.

Economics Class 10 Chapter 2-  Sectors of the Indian Economy

Different sectors of the economy

The three different sectors of the economy are as follows:

• Primary Sector

The primary sector encapsulates mining, farming, agriculture, and fishing. In this, one makes a product by extracting and collecting natural resources.

• Secondary Sector

In the secondary sector, the raw materials undergo manufacturing processes to be transformed into secondary goods. The industrial sector is an example; another example could be the raw materials such as cotton and wool spun into cloth.

• Tertiary Sector

This sector consists of activities that help grow the elementary and secondary sectors. They do not produce any goods, but they support the production process.

Gross Domestic Product (GDP)

GDP, or  Gross Domestic Product, is the value of final goods from all three sectors of the economy.

The paradigm shift in economic sectors

• The primary sector was the most important sector of the economy during the early phases of development.
• Later, the agricultural sector began to produce more food and people started working in industries and factories. 
• It resulted in the establishment of services such as banking, health care, and education.
• Since then, the tertiary sector has become important and has begun to employ a large section of the population.

Disguised Unemployment

Unemployment has affected the growth of the nation. Disguised unemployment occurs when too many people apply for too few jobs, and these people fail to land a job and are left unemployed.

Different sectors in terms of operations

• Organised Sector

Organised sectors offer fixed and secure employment to their employees for a limited amount of time. These industries adhere to the rules and regulations of the government.

• Unorganised Sector

Workers in the unorganised sector do not have job security and fixed working hours, and they are made to work overtime, which is not compensated in any way.

Different sectors in terms of ownership

• Public Sector

The goal of the public sector is to benefit the general population, and it includes departments like railways and post offices.

• Private Sector

High-profile organisations and blue-chip companies comprise the private sector, and their main motive is to make money and maximise their profits.

Economics Class 10 Chapter 3- Money and Credit

What is money?

Money is referred to as a medium of exchange because it acts as an intermediary in carrying out the exchange process.

Double-coincidence of wants

It is the process when both parties agree to buy and sell each other’s commodities at the same time in the trade.

Forms of Money

In the past, Indians used food grains, livestock, and wheat as currency. After that, copper, silver, and bronze coins were used as forms of money until the twentieth century.

In the twenty-first century, people have started using currency notes and deposits as a form of money.

• Currency

The Reserve Bank of India issues currency notes to the public. No other organisation is permitted to print money.

• Deposit 

People can keep money in the form of bank deposits. Banks provide interest on the money that is deposited. Demand deposits are bank deposits that are available for withdrawal at any time. 

• Cheques

Many people use cheques to facilitate payments and transfer money from one account to another.

Loan activities of banks

• Banks only keep a small number of their deposits in cash on hand. Banks in India currently keep about 15% of their deposits in cash. The majority of deposits are used by banks to extend loans. 
• The difference between what banks charge borrowers and what they pay depositors is the primary source of income for banks.

Important Terms of Credit

• Collateral

Collateral is an asset such as land, buildings, vehicles or livestock that a borrower keeps as a guarantee until the loan is returned. If the borrower fails to repay the loan, the asset is sold off to adjust the amount.

• Formal Sector Loans

Banks and cooperatives issue formal sector loans. These financial institutions must report to the Reserve Bank of India and provide information about the money lent and the interest rates.

• Informal Sector Loans

These comprise loans from the informal sectors such as friends, neighbours, money lenders, and employers. There is no regulatory body that governs the actions of informal lenders.

• Formal Credit

Banks have to report to the RBI about their money and the loans provided to small-scale and large-scale industries.

• Informal Credit

It includes money lenders, traders, and friends who do not have regulatory bodies governing their actions. They can charge any interest rate they want.

Self-help groups for the poor

For the following reasons, low-income households continue to rely on informal sources of financing:

• In rural India, banks are not widely available. 
• Even in areas where banks are present, getting a bank loan is far more challenging because sufficient documents and collateral are required.

The villages have self-help groups (SHGs) which include 15-20 members who save regularly and assist people in dire need of financial help. These SHGs assist the poor and women in becoming financially independent.

Economics Class 10 Chapter 4- Globalisation and the Indian economy

What are MNCs?

Multinational corporations (MNCs) are companies that control the production in more than one country. They set up factories in areas where the labour and cost of production are cheap to make more money.

The investment made by MNCs is termed foreign investment. They partner with an existing local company in joint production, and the investment enables the local producers to accelerate the production and use cutting-edge technologies.

Some MNCs purchase local enterprises with vast networks to grow their production.

Foreign trade and the integration of markets

Foreign trade enables producers to reach places outside their native markets, i.e., markets within their own countries. Producers can sell their products not only in domestic markets but also in international markets.

Globalisation

The term “globalisation” means integrating the national economy with the global economy. It is the result of numerous actions that have been taken to make the world more interconnected and integrated.

The following factors have enabled globalisation:

• Rapid technological advancement in information and communication networks. 
• Removing government-imposed trade restrictions has resulted in seamless trade with different countries. 
• The Foreign Investment Policy and the World Trade Organisation (WTO)
• New employment opportunities have been created in many industries and sectors.  Local businesses that supply these sectors with raw materials have also prospered.

Economics Class 10 Chapter 5- Consumer Rights

Who is a consumer?

A consumer is someone who purchases a good or product for their own personal use and consumes it.  A consumer may not resell the item but may use it to support themselves. Consumer Movement

People were dissatisfied with the widespread production malpractices. There were no laws in place to penalise such behaviour. Consumer movements started because of the dissatisfaction of people with such practices. The Consumer Protection Act was introduced in 1986 to safeguard and promote consumers’ interests against unfair trade practices. 

Consumer Rights

There are several consumer rights listed in the constitution. They are as follows:

• Right to Safety

Many products can pose a risk to our lives if not handled appropriately. Producers must adhere to strict rules and regulations to maintain safety standards. 

• Right to be Informed

Consumers have the right to know about the commodities they purchase.  

•  Right to Choose

Consumers have the right to select the product to be purchased and they cannot be forced to purchase something they do not want.

• Right to seek redressal

If consumers feel that the seller has exploited them, they have the right to seek a remedy.

• Right to Represent

If a customer and seller dispute cannot be settled, the customer may seek a remedy through the local consumer court.

Justice for Consumer

Consumer courts were established under the COPRA to provide justice to consumers whose rights had been violated. The District Forum, State Commission and National Commission hear matters involving claims. 

Students can refer to Economics Class 10 Notes provided by Extramarks and solve CBSE past years’ question papers to practise important questions related to the subject. They can also refer to the CBSE revision notes to accelerate their preparation.

There are important questions that one must go through for a deep understanding of the topic. Students can practise the CBSE sample papers and have the answers to all the questions at their fingertips. Also, some important formulas will help attempt the CBSE extra questions from the NCERT books.