{"id":972,"date":"2023-01-31T10:54:32","date_gmt":"2023-01-31T05:24:32","guid":{"rendered":"https:\/\/apboardsolutions.com\/?p=972"},"modified":"2023-03-30T10:03:28","modified_gmt":"2023-03-30T04:33:28","slug":"ap-board-9th-class-social-studies-solutions-chapter-10","status":"publish","type":"post","link":"https:\/\/apboardsolutions.com\/ap-board-9th-class-social-studies-solutions-chapter-10\/","title":{"rendered":"AP Board 9th Class Social Studies Solutions Chapter 10 Prices and Cost of Living"},"content":{"rendered":"

SCERT AP Board 9th Class Social Solutions<\/a> 10th Lesson Prices and Cost of Living Textbook Questions and Answers.<\/p>\n

AP State Syllabus 9th Class Social Studies Solutions 10th Lesson Prices and Cost of Living<\/h2>\n

9th Class Social Studies 10th Lesson Prices and Cost of Living Textbook Questions and Answers<\/h3>\n

Improve Your Learning<\/span><\/p>\n

Question 1.
\nWhy is there a need to regulate prices?
\nAnswer:<\/p>\n

    \n
  • Trades main aim is to earn profit, raise prices of many goods and particularly essential items by illegal ways.<\/li>\n
  • If there is no increase in wage for workers who are also consumers in the market, they cannot buy the goods.<\/li>\n
  • When these goods happen to be essentials such as wheat, rice, milk etc., this creates problem for the people.<\/li>\n
  • This necessitates the need for regulation of traders to regulate prices.<\/li>\n<\/ul>\n

    Question 2.
    \nHow are prices fixed by a seller\/producer?
    \nAnswer:<\/p>\n

      \n
    • The traditional economic theories of pricing were based on the demand and the supply.<\/li>\n
    • 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.<\/li>\n
    • Producer sells the goods to the seller.<\/li>\n
    • Seller in turn adds his profits and fixes the prices.<\/li>\n<\/ul>\n

      \"AP<\/p>\n

      Question 3.
      \nDifferentiate the cost of living from the standard of living.
      \nAnswer:<\/p>\n\n\n\n\n\n\n
      Cost of Living<\/td>\nStandard of Living<\/td>\n<\/tr>\n
      1. The total costs of all goods and services purchased in a family for a specific period is the cost of living of the family.<\/td>\n1. The quality of life that the people enjoy is the standard of living of the people.<\/td>\n<\/tr>\n
      2. Inflation and cost of living are positively related.<\/td>\n2. Inflation and standard of living are inversely related.<\/td>\n<\/tr>\n
      3. That means if inflation increases, the cost of living too increases.<\/td>\n3. That means if inflation increases, the standard of living decreases.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Question 4.
      \nWho is affected the most by increase in cost of living? Why?
      \nAnswer:<\/p>\n

        \n
      • People with fixed incomes, such as pensioners, daily wage earners, manual workers, small vendors, workers in small enterprises and in private low income jobs etc., are badly affected by increase in cost of living.<\/li>\n
      • These people’s income does not increase when there is inflation.<\/li>\n<\/ul>\n

        Question 5.
        \nWhich groups can get higher incomes whenever there is inflation?
        \nAnswer:
        \nNot everyone is affected by rising prices. For some groups this rise in price levels is compensated. They are –<\/p>\n

          \n
        1. People working in central and state government offices and in some organizations get an additional payment called “Dearness Allowance” whenever prices rise. Therefore their income increases, along with inflation.<\/li>\n
        2. People doing business activities recover the higher cost of living by increasing the prices of goods they sell.<\/li>\n
        3. People providing services such as lawyers, doctors etc., increase their fees when prices increase.<\/li>\n
        4. Extremely rich people and those working in corporate sector are less affected by rising prices.<\/li>\n<\/ol>\n

          \"AP<\/p>\n

          Question 6.
          \nHow is Wholesale Price Index different from Consumer Price Indices?
          \nAnswer:
          \nChange in price is measured with the help of a statistical device referred to as “Price Index”. Price Index is of two types. They are –<\/p>\n

            \n
          1. Consumer Price Index<\/li>\n
          2. Wholesale Price Index<\/li>\n<\/ol>\n\n\n\n\n\n\n
            The Consumer Price Index<\/td>\nThe Wholesale Price Index<\/td>\n<\/tr>\n
            1. The CPI measures only changes in prices of a few selected consumer goods at retail price.<\/td>\n1. The Wholesale Price Index includes all goods and changes in their wholesale rates.<\/td>\n<\/tr>\n
            2. Different CPIs are published by government.<\/td>\n2. There is only one wholesale price index.<\/td>\n<\/tr>\n
            3. The CPIs are used to calculate the DA to be paid for government employees.<\/td>\n3. The inflation is generally measured on the basis of changes in WPI.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

            Question 7.
            \nHow is food inflation different from Consumer Price Indices?
            \nAnswer:<\/p>\n

              \n
            • CPI measures only changes in prices of a few selected consumer goods at a retail price.<\/li>\n
            • Different CPIs are published by the government.<\/li>\n
            • Whereas FPI (Food Price Index) is used to estimate rise in prices of food items called food inflation.<\/li>\n
            • The FPI consists wholesale price of food materials such as rice, wheat, pulses, vegetables, sugar, milk, eggs, meat, fish, and manufactured food materials such as edible oils.<\/li>\n<\/ul>\n

              \"AP<\/p>\n

              Question 8.
              \nWhat are the uses of the CPI?
              \nAnswer:
              \nThe CPIs are used to calculate the DA to be paid for government employees, to revise legal wage rates as part of Indian government laws and also to estimate the number of poor in India.<\/p>\n

              Question 9.
              \nList of five problems with measuring CPI.
              \n(OR)
              \nWrite any five issues that are considered while measuring CPI.
              \nAnswer:<\/p>\n

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

                \"AP<\/p>\n

                Question 10.
                \nHow is Administrative Price Mechanism (APM) different from Minimum Support Price (MSP)?
                \nAnswer:<\/p>\n\n\n\n\n\n\n
                Administrative Price Mechanism<\/td>\nMinimum Support Price<\/td>\n<\/tr>\n
                1. Under APM, a price is fixed and it is mandatory for the traders to sell their goods at that price level in the market.<\/td>\n1. A minimum support price is a price at which the farmers can sell their grain to the government.<\/td>\n<\/tr>\n
                2. It is compulsory for traders to follow the APM.<\/td>\n2. It is not compulsory for farmers to sell their goods at MSP<\/td>\n<\/tr>\n
                3. It helps in preventing hoarding and keeps the prices of essential commo\u00addities within reasonable levels.<\/td>\n3. It helps the farmers to gain their \u00a0of cost cultivation plus a minimum profit \u00a0on the production<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                Question 11.
                \nRead sixth paragraph under the heading ‘Role of Government in Regulating Prices’ and answer the question.<\/p>\n\n\n\n
                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.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                How does the APM affect the government revenue? Discuss.
                \nAnswer:<\/p>\n