Important Economic Terms and Concepts for CBSE Class 10 Economics Exam

Economics is a subject that deals with the production, distribution, and consumption of goods and services. Understanding key economic terms and concepts is crucial for the CBSE Class 10 Economics exam. Here are some important terms and concepts that you need to remember:

1. Gross Domestic Product (GDP)
- GDP is the total value of all final goods and services produced within a country's borders in a specific period.
- It measures the economic growth and development of a country.

2. Consumer Price Index (CPI)
- CPI is a measure of the average change in prices of goods and services consumed by households over time.
- It helps in assessing inflation and cost of living.

3. Inflation
- Inflation is the sustained increase in the general price level of goods and services over time.
- It affects the purchasing power of money and reduces the value of savings.

4. Budget
- A budget is a financial plan that estimates income and expenses over a specific period.
- It helps in managing personal or government finances effectively.

5. Demand and Supply
- Demand refers to the desire, willingness, and ability of consumers to purchase a particular product or service.
- Supply refers to the quantity of a product or service that producers are willing and able to offer for sale.
- The interaction between demand and supply determines the equilibrium price and quantity in a market.

6. Market
- A market is a place or mechanism where buyers and sellers interact to exchange goods and services.
- It can be physical or virtual, such as a supermarket or online marketplace.

7. Trade
- Trade refers to the buying and selling of goods and services between individuals, firms, or countries.
- It promotes economic growth, specialization, and international cooperation.

8. Sustainable Development
- Sustainable development aims to meet the needs of the present generation without compromising the ability of future generations to meet their own needs.
- It involves balancing economic growth, social progress, and environmental protection.

9. Poverty
- Poverty refers to the state of being extremely poor, lacking basic necessities of life.
- It is measured using various indicators, such as income, education, and healthcare.

10. Globalization
- Globalization refers to the integration and interdependence of economies, cultures, and societies across the world.
- It facilitates the flow of goods, services, capital, and information between countries.

Understanding these economic terms and concepts will provide a strong foundation for the CBSE Class 10 Economics exam. Remember to study and revise these topics thoroughly for better performance.