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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [1] medium thorough-understanding
Salim the shoe manufacturer and Swapna the groundnut farmer both take credit to meet their production needs, yet credit helps one and harms the other. What single underlying factor best explains this difference in outcome?
Generated by claude-sonnet-4-6 · 2026-06-26 13:26 · grounding rag
Model Answer

The single underlying factor is risk in the situation. Salim's credit was backed by a confirmed order (guaranteed income), so repayment was certain. Swapna's crop failed, making repayment impossible and pushing her into a debt-trap.

Explanation

The textbook explicitly states: "Whether credit would be useful or not depends on the risks in the situation and whether there is some support in case of loss." For 1 mark, name the factor (risk/uncertainty of income) and briefly contrast the two cases. Avoid writing more than one–two lines.

Source: Chapter 3, Two Different Credit Situations

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.