NIOS Class 10 Economics — Flashcards for Quick Revision

A: Economics is the study of how people and society use limited resources to satisfy wants. It helps explain how choices are made about buying, selling, producing, spending, and saving.

A: Economics is vast because it deals with many everyday matters such as goods, market, demand, supply, price, inflation, banking, tax, lending, borrowing, and interest. It also studies decisions made by

A: Classical thinkers viewed economics as the science of wealth. They studied the nature and causes of wealth and how wealth is created by individuals and nations.

A: Wants are desires backed by money and willingness to purchase. A desire becomes a want only when there is purchasing power and the intention to buy.

A: Formation of a Want: Desire for a good or Service + Money to purchase and willingness to purchase → Want for a good or a service. A desire alone is not enough; money and willingness to buy are needed.

A: A beggar may desire to have a car, but this desire is not backed by adequate money. Since there is no purchasing power, it is a desire, not a want.

A: Goods are tangible in nature. They can be seen and touched, and they satisfy human wants. A chair, a book, and a television are common examples.

A: Services are non-tangible in nature. They can neither be seen nor touched. They satisfy human wants through acts such as treatment by a doctor, hair cutting by a hairdresser, or stitching by a tailor.

A: Goods are tangible, can be stored, and can be transferred from one place to another. Services are non-tangible, cannot be stored, and transfer of service is not possible. Goods are produced first and