Everyday economics

Exercise and reference answers

Matching pairs

1. Left

   Income +10%, basket price +20%

   Right

   Purchasing power falls

2. Left

   Farmer grows cotton

   Right

   Primary sector

3. Left

   Farm workers leave; same output

   Right

   Disguised unemployment

4. Left

   Government bus; private factory

   Right

   Public; private

5. Left

   ₹10k loan: 10% SI + ₹200 fee

   Right

   ₹1,200 interest plus fee

6. Left

   Deficit: 95 − 70 − 5 crore

   Right

   ₹20 crore

Instructions

Match the result; the loan term is one year.