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Example of Direct tax :

1) Income tax 

2) Corporate tax

Example of Indirect tax : 

1) Sales tax 

2) VAT, entertainment tax etc.

• Budget is the financial statement which shows the anticipated incomes and expenditure of a family, or an institution or a state or any central government. 
• When expenditures are more than incomes, then it is called a deficit budget. 
• The government levies taxes on people to meet the deficit.

• Not everyone is affected by rising prices. 
• Extremely rich persons are not affected by rising prices.
• People those, who are working in corporate sector do not get affected by rising prices.

The following measures should be taken to improve the present Public Distribution System (PDS). 

1. Implementation of measures such as door step delivery of food grains. 

2. Improving viability of fair price shop operations. 

3. Greater monitoring and vigilance. 

4. Improve food grains off take. 

5. Correct identification of beneficiaries. 

6. Smart system communication like information provided to consumers by SMS about rations.

• The traditional economic theories of pricing were based on the demand and the supply. 
• In general the prices are fixed on the basis of full average cost of production per unit plus a margin of normal profit or some satisfactory margin of profit. 
• Producer sells the goods to the seller.
• Seller in turn adds his profits and fixes the prices.

• Government regulates traders in agricultural products/goods. 
• It procures through Food Corporation of India, rice and wheat from farmers using Minimum Support Price (MSP). 
• Traders also need to pay MSP.
• It also fixes price for sugarcane procured to make sugar in cooperative sugar mills. 
• In these ways government try to regulate prices of agricultural products/goods in the market.

• Nowadays rise in prices is common. People are always worried about rise in prices.
• It affects their consumption and they have to pay more for everything. 
• Petrol prices increase, bus and auto fares increase, prices of groceries, vegetables, and milk increase, doctors fee increase and soon. 
• Thus people always appear to be agitated about the rise in prices.

• Continuous rise in prices of goods is known as inflation. 
• The value of money also decreases with inflation. 
• With more money also we could buy less goods only. 
• This in turn increases the expenditure. Thus lower inflation is always better.

Trades main aim is to earn profit, raise prices of many goods and particularly essential items by illegal ways.

If there is no increase in wage for workers who are also consumers in the market, they cannot buy the goods. 

When these goods happen to be essentials such as wheat, rice, milk etc., this creates problem for the people. 

This necessitates the need for regulation of traders to regulate prices.

Minimum Support Price (MSP) is decided by Government

• To control unscrupulous rise in prices of essential goods in market, government supplies food items at subsidised prices through Public Distribution System. 
• For preventing hoarding and keeping prices at reasonable level, government fixes prices of commodities like kerosene, diesel, gas, etc. through various laws. 
• When there is price rise, RBI reduces the money circulation in the economy. 
• Then it poses taxes on high-income groups and on many consumer goods.
• Government also uses Import – Export policy to regulate the prices of essential goods. 
• Government also use legal mechanism whenever traders create shortage by hoarding.

• The government generally gives subsidies to keep the prices of essential commodities within the resonable levels. 
• Goods such as kerosene, diesel, liquid petroleum gas, compressed natural gas, and piped natural gas are examples of goods whose prices are partly or solely subsidised by the government.

i. For preventing hoarding and keeping the prices of essential commodities within reasonable levels and to facilitate their availability, the government fixes the prices.

ii. Goods such as kerosene, diesel, liquid petroleum gas, compressed natural gas, piped natural gas are examples of goods which are partly or solely subsidised by the government.

• There are thousands of goods and services in the economy. 
• Only selected consumer goods and changes in these goods are taken by the government to calculate CPI.
• Both quality and quantity of goods consumed keeps varying from time to time. 
• Difficult to calculate CPI as the price levels vary from state to state. 
• Even food habits keep varying among people.

To 

The Tehsildar, 

Kaikalur Mandal, 

KAIKALUR.From, 

A.M. Bindu Madhavi,

IX Class, Harsha Public School, 

Singh Nagar, Kaikaluru.

Sir, 

We reside in Singh Nagar in Kaikalur near Mahalakshmi temple. Our ration shop number is 107/52. As we are white card holders, we are eligible for rice and other provisions. We are receiving the ration very late.

The rice supplied is spoiled and wet. And we receive rice in less quantity also. We gave complaint many times to local authorities but invain. So kindly look into the matter otherwise our food security right will be violated. This is for your kind information and necessary favourable action. 

Thanking you Sir,

Yours faithfully 

A.M. Bindu Madhavi,

IX standard.

If we buy 2 sweet packets: 

The cost of two sweet packets = 2 × 60 = 120 

Remaining Amount = 200 – 120 = 80

No. of Biscuit packets we can buy = \(\frac{80}{20}\) = 4

Total Amount we paid = 200

1. False 

2. True 

3. False 

4. True 

5. False

• Goods like Kerosene, Diesel, LPG, CNG and piped Natural Gas are subsidised by the government. . 
• Under subsidised scheme the government purchases the goods at high prices and sells them at low prices. 
• The loss is the subsidy and the. government bears the loss. 
• Government is now 3% of its expenditure on subsidies.

For 5 packets sweets (5 × 60) = Rs. 300 

For 5 packets biscuits (5 × 20) = Rs. 100 

Total amount you pay = Rs. 400

Prices of the goods have gone up and for the same amount of money i.e., Rs. 200/- we can buy lesser amounts of these commodities.

The government generally regulates prices through Administrative Price Mechanisms. Sometimes subsidies are given to regulate the prices.

Standard of living Quality of life that people lead in terms of goods and services is the standard of living of the people.

1. Continuous rise in prices of goods is known as inflation.
2. Change in price is measured with the help of a statistical device known as a price index.
3. CPIs are used to calculated DA (Dearness Allowance) to be paid for government employees, to revise legal wages, etc.
4. WPIs are helpful in calculating the rates of inflation.

C) Uttar Pradesh

D) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

1. The expenditure on tools, machines and building is called physical capital. 

2. They are not used up or consumed immediately in the process of production. 

3. They help to produce goods over many years. 

4. They require some repair and maintenance so that they remain useful and can be used year after year. 

5. That is why they are called fixed or physical capital.

B) Grain production

Nowadays farming is not providing regular employment to rural people and they are not getting sufficient income also. That’s why the expansion of non – farm activities in rural areas is needed. Nowadays people with some amount of capital can set up non-farm activities. 

It requires very little land. Banks provide loans to self-employment purpose. People can get market facilities to sell their goods. Neighbouring towns and cities provide more demand to village goods. 

Ex: Milk, jaggery, broomsticks etc.

Answer is (B) fixed

1. They need shop set up that is prepared. 

2. Different almirahs, boxes, weights and measures like balance, stones etc.

D) Tapping of underground water

1. Labour means people who do the work either highly trained and educated or who can do manual work.

2. Each worker is providing necessary labour for production. 

3. Skilled or semi-skilled or unskilled labour – all are providing labour for production. 

4. Thus labour is essential item in production.

Conclusion: If government provides loans to landless labour for agriculture purpose, motor pump sets, engines, etc. more labour we will find in the agricultural sector.

Labour force: 

People, in the age group of 15 – 59 are labour force, 

(or) 

People who are employed are called labour force.

B) Dependence of huge population on agriculture and law of inheritance

B) excessive use of chemical fertilizers

1. The labour in this case is provided by Mishrilal himself. 

2. At times, he may be supported by his family members.

1. Well irrigated areas in India are Punjab, Haryana and Uttar Pradesh. 

2. Moderate to high irrigated areas are Bihar, Tamil Nadu, Jammu & Kashmir, Manipur, Telangana and Andhra Pradesh. 

3. In our state most of the region is tank irrigated. 

4. Quite a considerable region is under canal irrigation.

5. Our region falls under this category.

1. Shopkeepers buy goods that villagers produce. 

2. They supply it to shops/markets in bigger villages/towns. 

3. They sell wide range of small items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, notebooks, pen, pencil and even some cloth. 

4. Shopkeepers need working capital to buy and stock all these to sell off.

Correct option is A) Punjab

C) They produce articles for their own use.

There are four factors of production. 

They are:

1. land 2 

2. labour 

3. capital and 

4. organisation.

C) Agriculture sector

The small farmers procure the capital needed for farming by borrowing money from 

1. Large farmers 

2. Moneylenders

3. The traders who supply various inputs for cultivation.

1. Usually land is a scarce factor of production. 

2. If we imagine labour to be the scarce factor, the story of Rampur would be different. 

3. The wages for the labourers will be high.

4. Not only farm labourers other labourers also get a benefit. 

5. Government also fixes higher minimum wages.

B) Labour and Land

B) Coastal regions

1) These small shops selling eatables are run by the shopkeepers.

2) They are assisted by the woman and the children in the family.

1. Experience shows fertility of the land is declining due to overuse, excessive use of chemical fertilizers and pesticides. 

2. The situation of water is equally alarming. 

3. Underground water tables have fallen rapidly across the country. 

4. The use of natural resources also not always been judicious while increasing production.