1 Mark Question
Question 1: Give two examples of direct real income.
Answer: Examples of direct real income are:
(i) Skills of family members like stitching their own clothes ,ironing clothes at home,etc.
(ii) Use of community resources like public transport,public park,etc.
Question 2:List two sources a family can use to increase its real income.
Answer: Sources a family can use to increase its real income are:
(i) Fringe benefits or perquisites like rent-free accommodation,reimbursement of petrol bills and telephone bills etc, provided by the company in which a family member is employed.
(ii) Exchange or barter useful items like eatables and books,which would otherwise have to purchased.
Question 3:List two sources of money income which can help a family to improve its standard of living.
Answer:Sources of money income which can help a family to improve its standard of living are:
(i)Give out a portion of the house or full house on rent.
(ii) Do a part time or full time job.
Question 4:How will you convince the members of a family to regularly save some portion of their income?
or
Give two reasons to the members of a family for the need to supplement their income.
or
How will you convince a family to supplement their income?
Answer:We can convince a family to supplement/for the need to supplement/save some portion of income because this will be required for the following reasons:
(i) To take care of inflation and price rise.
(ii) To take care of increasing family demands for educational expenses,clothes,etc.
(iii) To improve their standard of living.
(iv) To invest money for a secure future and so on.
Question 5: Define Income.
Answer:Income can be defined as the inflow of money ,goods and services.
2 Marks Questions
Question 6 :Twenty four year old Meeta got a new job away from home in another town.Detail out two new responsibilities each that she has to take resounding her career and home.Also, state the preparation that she should require to face this new situation.
Answer: Meeta,a Twenty four year old girl has got a new job away from home in another town. Her two new responsibilities regarding her career and home are:
(i) Meeta has a responsibility towards he family members. She has to supplement her family income by giving one portion of her salary which will improve their standard of living.
(ii)She has to acquire skills and knowledge required for the new job by updating herself.
To face the new situation she has to take some preparations. These are:
(i) She should be mentally prepared to stay alone without her family in a new town.
(ii) She should learn to manage both office work as well as household chores.
Question 7 : Suggest four specific ways by which you can easily help in reducing your expenses and contribute to your family income.
or
In what four specific ways can you help in reducing your family expenditure.
or
Your family income can be increased by reducing your personal expenses.Support this statement with four examples.
Answer: Examples of family income being increased by reducing my personal expenses/specific ways to help in reducing family expenditure are:
(i) I will wash and iron my won clothes,thus saving on washing and ironing expenses.
(ii) Instead of buying books for studying , I will borrow such books from a public library.
(iii)I will not go for tutions. Instead,I will study by myself,thus saving the fees charged by tutors.
(iv) I will use public transport instead of a car/motorcycle which will be costlier to run.
Question 8:Predict four problems a family can face if it does not maintain a record of its house hold expenses.
or
State four drawbacks if members of a family do not maintain a record of their domestic expense.
Answer:The drawbacks/problems of not maintaining a record of domestic/household expenses are:
Wasteful Expenditure As we are not able to evaluate our spending pattern ,we may end up spending more than required.
Money Availability Unknown As there is no record of sources of money, we are not able to plan our spending
No Guidance for Current and Future Expenses By maintaining a record , we can compare the money spent on the same item in the past. Without record, this will not be possible.
Money may finish earlier than planned Not having an idea of our spending pattern ,the money may finish earlier than planned.
Question 9: Justify giving four reasons as to why a family should maintain an account of its household expenses.
Answer: The reason as to why a family should maintain an account of its household expenses are:
(i) It helps to know the exact amount of funds/money available to the family.
(ii) It avoids wasteful expenditure, as the family can periodically evaluate their spending pattern and modify it accordingly to prevent unnecessary expenses.
(iii) It serves as a guideline for the current and future expenses,as they can compare the past prices with current prices so that they can change their spending apttern if required.
(iv) It will help in avoiding being overcharged for items purchased regularly on weekly or monthly basis.
Question 10: Give four reasons for a family to supplement its income.
Answer: Reasons for a family to supplement its income are:
(i)To take care of inflation and price rise.
(ii) To take care of increasing family demands for educational expenses,clothes,etc.
(iii) To improve their standard of living.
(iv) To invest money for a secure future .
Question 11:Differentiate between Money Income and Real Income.
Answer:The differences between Money Income and Real Income are:
| Money Income | Real Income |
| It is the cash available to a family from all sources over a period of time | It is the flow of goods and services available to the family over the same period of time |
| It is tangible and used for purchasing good and services for the family | It is derived from possessions owned by the family ,skills, efforts and abilities of the family members and through community facilities |
3 Marks Questions
Question 12 :State one difference between money and real income. Suggest two ways each family can increase these with the use of their assets.
Answer:Money is available in the form of currency, like cash and coins,while real income is a flow of goods and services,like food items purchased. A family can increase money by using their assets in the following ways:
(i) Giving out a portion of a house or the full house on rent
(ii) Giving Tutions.
A family can increase real income by using their assets in the following ways:
(i) Living in their own house thus saving on rent.
(ii) Growing vegetables in their own garden,thus saving or not buying from the market.
Question 13:Give six points to bring out the importance of keeping a record of income and expenditure.
Answer:Keeping a record of income and expenditure is important for the following reasons:
(i) It helps to know the exact amount of funds/money available to the family.
(ii) It avoids wasteful expenditure ,as the can family can periodically evaluate their spending pattern and modify it accordingly to prevent unnecessary expense.
(iii) It serves as a guideline for current and future expenses,as the family can compare past and current prices so that they can change their spending pattern if required.
(iv) It will help in avoiding being overcharged for items purchased regularly on weekly or monthly basis.
(v)It helps to predict the money requirement in the future as well as ensuring that the money lasts till the end of the month.
(vi) It makes the family conscious of saving and spending money judiciously.
Question 14:Write three reasons for supplementing your family income. Suggest three different ways of increasing your psychic income.
Answer:Reasons for supplementing my family are:
(i) Take care of inflation and price rise.
(ii) To take care of increasing family demands for educational expenses ,clothes,etc.
(iii) To improve their standard of living.
Ways of increasing my psychic income are:
(i) Bargain the prices of vegetables and fruits from roadside vendors to feel satisfied.
(ii) Buy higher quality gadgets which last a long time, which gives a feeling of satisfaction.
(iii) Use the skills of the family members to repair and maintain the home and its fittings,thus feeling satisfied on saving money which can be used for another purpose.
Question 15:State six drawbacks of not maintaining a record of household expense.
or
Predict six problems a family can face if it does not maintain a record of its household expenses.
Answer: The drawbacks/problems of not maintaining a record of domestic/household expenses are:
Wasteful Expenditure As we are not able to evaluate our spending pattern ,we may end up spending more than required.
Money Availability Unknown As there is no record of sources of money, we are not able to plan our spending
No Guidance for Current and Future Expenses By maintaining a record , we can compare the money spent on the same item in the past. Without record, this will not be possible.
Money may finish earlier than planned Not having an idea of our spending pattern ,the money may finish earlier than planned.
Overcharging The family may be overcharged for items purchased regularly on weekly or monthly basis as the may not remember what price they have paid for the same item the previous time.
Not Conscious of Saving By not maintaining a record, we are not conscious of saving or spending money judiciously.
Question 16: What six ways can college going students adopt to help themselves in supplementing their real income?
Answer:The ways in which college going students can supplement their real income are:
(i) By taking tuitions of school going students
(ii) By taking up part time jobs in shops in the evenings.
(iii) By working as door to door salesperson
(iv) By making candles at home and selling them
(v) By growing vegetable sin their home garden
(vi) By washing and ironing their won clothes instead of giving the to the laundry
4 Marks Questions
Question 17 : Your mother is finding it difficult to manage the household expenses within the monthly allowance she is given. She also knows that this allowance cannot be increased for some time to come.In your opinion,what can be an alternative solution to this problem?Give at least eight suggestion.
Answer:The alternative solutions suggested for this problem are to either reduce expenses,supplement income or use skill,assets and community resources. These can be done by:
(i) Eating at home instead of at restaurants.
(ii) Not buying branded products,but using unbranded products which are cheaper.
(iii) Doing household chores herself instead of employing others to do so.
(iv) Growing vegetable in own garden
(v) Using community facilities.
(vi) Bargaining prices with vendors and shopkeepers.
(vii) Using her own skills of stitching clothes,washing them and ironing them
(vii) Managing the allowance intelligently to save money.
Question 18:Your mother wants to supplement her family income. What are two possibilities available for her to achieve this objective?Using three example from each possibility,explain how she can achieve her objective.
Answer:Two possibilities available for her to achieve this objective are:
(i) She can take up a part time job.
Three examples of such part time jobs are:
(a) Working as a shop assistant in the evenings
(b) Taking tuitions of school students
(c) Working as a part time consultant for a small firm.
(ii) She can use the family assets judiciously .Three examples of using assets judiciously are:
(a) Growing vegetables on won land
(b) Stitching clothes for others using her sewing skills
(c) Giving out part of house on rent.
Question 19:Suggest four ways your family members can reduce their expenses.Also suggest four ways they can increase their real income.
Answer:Four ways in which my family members can reduce their expenses are:
(i) Washing and ironing their own clothes,thus saving on washing and ironing expense
(ii) Instead of buying books for studying,they can borrow such books from the library.
(iii) Students in the family will not go for tuitions but study by themselves,thus saving the fees charged by tutors.
(iv) They will use public transport instead of a car/motorcycle which will be costlier to run.
Four ways in which my family members can increase their real indirect income are:
(i) By using fringe benefits or perquisites like rent free accommodation,reimbursement of petrol and telephone bills,etc provided by the company in which a family member is employed.
(ii) Exchange or barter useful items like eatables and books,which would otherwise have to purchased.
(iii) Not hiring servants to do household chores.
(iv) Buying and using gadgets like washing machines and mixer grinders.
Question 20:Suggest two ways in which each of the family member can increase their money and real income with the of assets and skills.
Answer: The ways in which each of the family members can increase their money and real income with the use of assets and skills are:
(i) Increase the money income by assets through:
(a) Giving a portion of the house on rent
(b) Growing vegetable on own land and selling them
(ii) Increase of money income by using skills through:
(a) Making candles and selling them
(b) Using their skills to do part time jobs.
(iii) Increase real income by using assets through:
(a) Growing vegetable on own land and selling them
(b) Buying articles of consumption cheaper by buying in bulk
(iv) Increase real income by using skills through:
(a) Using bargaining skills to save money
(b) Study harder for examinations without going for tuitions.
Question 21: Suggest four ways each for family members to increase their direct and indirect real income.
Answer: Ways for family members to increase their direct real income are:
(i) Using skills of family members to tailor own clothes,studying on their own instead of taking tuitions,etc.
(ii) Using community facilities like library,parks,government hospitals,etc.
(iii) Bargaining prices with shopkeepers/vendors.
(iv) Using family assets judiciously by growing vegetables on their land.
Ways for family member to increase their indirect real income are:
(i) Buy good quality products which last for a long time.
(ii) Hire a good servant and enjoy his/her services.
(iii) Use perks/reimbursements given by company,e.g. car,house,telephone,etc.
(iv) Barter/exchange homemade products like pickle and jam with friends.
Question 22:In order to increase his real income suggest eight ways by which a student can decrease his expenses.
Answer:A student can decrease his expense in the following ways:
(i) Use public transport
(ii) Borrow books from the library instead of buying them
(iii) Do self study instead of going for tuitions.
(iv) Taking tiffin meals to college instead of buying food from the cafeteria.
(v) Not using expensive branded clothes and shoes.
(vi) Washing and ironing his own clothes instead of giving them to the laundry.
(vii) Not wasting money on buying unnecessary items.
(viii) Taking up part time tuitions for children of lower classes
5 Marks Questions
Question 23 :What is ‘Income and Expenditure Account’?Illustrate the procedure for making such a n account by showing an actual daily Income and Expenditure Account for one day.
Answer:An ‘Income and Expenditure Account’ is a running account of income and expenditure which is maintained on a daily basis.It is later summarized on weekly basis and monthly basis.
The procedure for making such an account for a family for one day is illustrated below:
(i) A record sheet divided into the following columns are prepared i.i. Date,Income() ,Item purchased,rate per kg/litre,Quantity (kg/litre),Amount Spent(), and Balance().
(ii) The income is noted on the date which it is received.
(iii) Details of the items which are purchased on a particular date are recorded in the relevant columns.
(iv) At the end of each day ,the total expenditure of that day is deducted from the day’s opening balance to arrive at the balance cash at the end of the day.
Example of Daily Income and Expenditure Account is given below:
| Date | Income | Item Purchased | Rate per kg/litre(₹) | Quantity(kg/litre) | Amount Spent(₹) | Balance(₹) |
| 01/04/2017 | 2500(Balance from March) | Butter | 400 | 0.5 | 200 | 20000+2500-200-40-30-50-20=22160 |
| Milk | 40 | 1 | 40 | |||
| Bread | 60 | 0.5 | 30 | |||
| 20000(Salary) | Potatoes | 10 | 5 | 50 | ||
| Tomatoes | 20 | 1 | 20 |
Question 24:List five ways to increase your psychic income.Also give a reason for each.
Answer: Ways to increase my psychic income are:
(i) Buying items from reputed and fixed price shops will give me satisfaction that I am getting value for money.
(ii) Bargaining on prices of vegetables and fruits from roadside vendors will give me satisfaction that i have got the best prices in the market.
(iii) Getting our gadgets repaired from reputed and authorized service centers will assure me that the gadgets will not go bad again.
(iv) Attending karate classes and becoming black belt holder after some time will give me satisfaction that i can take on any attacker successfully.
(v) Hiring a smart secretary to assist me in my job will satisfy me by raising my prestige in the minds of others.