AP State Syllabus AP Board 9th Class Social Studies Important Questions Chapter 10 Prices and Cost of Living.

## AP State Syllabus 9th Class Social Studies Important Questions 10th Lesson Prices and Cost of Living

### 9th Class Social 10th Lesson Prices and Cost of Living 2 Marks Important Questions and Answers

Question 1.
“Public distribution system is one of the government programme to eradicate poverty. But one aspect of this programme is that it is not reaching the eligible people”.
Suggest the measures for better implementation of public distribution system? (SA-III : 2015-16)
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.

### 9th Class Social 10th Lesson Prices and Cost of Living Important Questions and Answers

Question 1.
What is inflation? Explain.

• 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.

Question 2.
Who do you think are not affected by rising prices?

• 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.

Question 3.
What is a price index? How is it useful?

• Change in price is measured with the help of a statistical device referred to as price index.
• Change in prices of one good does not affect all goods and services in the same way.
• So we use index numbers of prices to measure the overall change in prices.
• Index numbers tell us about changes in the sum total of a set of items over time.

Question 4.

 For preventing hoarding and keeping the prices of essential commodities within reasonable levels, and to facilitate their availability, the government fixes the prices and makes it mandatory for the traders to sell goods in the market at those price levels. Those who do not follow stipulated price levels are penalised by government through various laws. 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 and sold under Administrative Price Mechanism.

i) Why does the government fix prices under APM?
For preventing hoarding and keeping the prices of essential commodities within reasonable levels and to facilitate their availability, the government fixes the prices.

ii) Which goods are subsidised by the government?
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.

Question 5.
Estimating Consumer Price Index
This is an example of how CPI can be constructed. Let us assume that your family buys rice, onions, dal, and gas cylinder.

1) How much more do we have to pay compared to last month?
The expenditure has been increased by Rs. 350.

2) What is the percentage of increase?
Percentage = $$\frac{350}{1500}$$ × 100 = 23.3%

Question 6.
What is a budget? How does the government meet the deficit in the budget?

• 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.

Question 7.
Nowadays there is rise in prices, why do people appear agitated and worried with it?

• 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.

Question 8.
Prices of agricultural goods/products are volatile. What initiatives are taken by government to help farmers?

• 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.

Question 9.
Why should the government give subsidies? On which items generally subsidies are given?

• 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.

Question 10.
What measures are taken by government to control prices or reduce inflation?