ECONOMICS LESSON -1 DEVELOPMENT

1. Why different people have different developmental goals?

Ans: i) .Each one of us things that are most important for us. At times two
persons or groups of persons may seek things which are conflicting.

ii) For eg. A girl may seek as much freedom and opportunity as her
brother and that he also share the house hold works.

iii) Similarly to get more electricity industrialists may want more dams.
But this may submerge the land of poor farmers. They may resent this
and prefer small check dams to irrigate their fields.

iv) So different people have different developmental goals and what may
be development for one may not be development for the other.

2. Besides income what are the non-material things that man need to
improve the quality of his life?

Ans: i) What common people prefer are regular work, better wages and
decent prices for their products or crops ie; they want more income.

ii) Besides seeking income people also seek things like equal treatment,
freedom, security and respect of others.

iii) People resent discrimination because it may be more important than

more income or more consumption as materials goods not all that we
need.

3. Why total income is considered as an important attribute to compare

countries on the basis of their development?

Ans: For comparing countries their income is considered as one of the

most important attributes. Countries with higher income are more
developed than countries with less income. Here more income means
more of all things that human beings need. So greater income is
considered to be one of the most important goal of people. Total Income is
not a useful measure. Since countries have different population comparing
total income will not tell us what an average person is likely to earn.
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 4. What is the main criterion used by World Bank in classifying different
countries? What are its limitations?
Ans: 1) Average income or per-capita income is used by World Bank in
comparing countries. PCI is calculated by dividing the total income of the
country by the total population.

2) In the world development report published by World Bank takes

average income is used to classify countries.

3) Countries with PCI of ·$12056 and above are called rich countries and
those with PCI of $955 are considered as low income countries.

4) India comes in the category of low income countries as its PCI was just
$1820 in 2017 ·

5) PCI hides disparities. It is useful for comparison but it do not tell us

how this income is distributed among people.
6) ) Even though per capita income of many countries is very high, it is
noticed that the standard of living of the people remained low.

5. What is the criteria used by UNDP for comparing countries? is it different

from the one used by World Bank?

Ans: 1) Once it is realized that even though the level of income is

important, yet it is an inadequate measure of the level of development, we
begin to think of other criterion.

2) What we need is a small number of the most important things like

education and health indicators.

3) Over the past decades or so health and education indicators have come
to be widely used along with income as a measure of development.

4) Human Development Report published by UNDP compare countries

based on the educational level of the people, their health status and per
capita mcome.

5) This comparison is different from the one used by World Bank as it

uses only per capita income to compare countries on development.

6. Why some states like Kerala has a low infant mortality rate?

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 Ans: Kerala has a low infant mortality rate because it has adequate
provision of basic health and educational facilities. Similarly in some
states, the Public Distribution System (PDS) functions well. If some PDS
shops does not function properly in such places, the people are able to get
the problem solved. Health and nutritional status of people of such states
is certainly likely to be better.

7. Why is the issue of sustainability important for development?

i. It is important because future generations should not suffer due to the

development programs of the present generation.
ii. Issue of sustainability consider judicious use of resources, adopt measures
to prevent environmental pollution and to avoid wastages

8. What is per capita income?

It is the average income of a citizen. It is calculated by dividing the total
income of the country by the population.

9. Give three examples where an average is used for comparing situations.

Or Why do we use averages? What are the limitations to their use?

i. The per capita income or the average income is used to compare

economic development of countries.
ii. We use averages to identify and analyze performance level in different areas.
iii. It is used to compare different situations and to find out the strong and
weak points.
iv. We use averages to make calculations easier and averages reveal general
Performance level.
There are limitations to their use. Averages will not represent the actual
performance.
When we take the average of similar performance or similar amount, it is
Meaningful.
However, when we calculate two extremes or a number of very low
performances and a very high performance, the average will not tell the exact
situation.

10. Why do you think average income is an important criterion for

development? Explain
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 i. Average income represents the total income of a country keeping in view
of the total population. If the average income is adequate to meet, the basic
Requirement and other facilities that country is considered developed.
ii. More income means more of all things that human beings need.
Whatever people like and should have, they will be able to get with greater
income.
iii. Equal distribution of income is important in comparing two or more societies.
iv.Utilization effect( what for you use ) of income is also important.

11. Prove by giving examples that income itself is not a completely adequate
indicator of material goods and services that citizens were able to use.

i. The per capita income of Haryana and Kerala is Rs.162034 and Rs. 155516
by the year 2016-17 .
ii. Though the per capita income Haryana was much higher than Kerala their
infant mortality rate is 36 and it is higher than 12 in Kerala and literacy rate is 82 %
Haryaana and 94% in Kerala.
iii. Money cannot buy all the goods and services that we need to live well. It
can not buy a pollution free environment or ensure that we get unadulterated
medicine.

12. What are the three components of Human Development Index? Or what
areattributes of regional or national developmental aspirations or goals?

I. Per capita income or the average income of a citizen. Per Capita Income is
Calculated in dollars for all countries so that it can be compared. It is also don
in a way so that every dollar would buy the same amount of goods and
services in any country.
II. Life expectancy at birth denotes, as the name suggests, average expected
Length of life of a person at the time of birth. Infant Mo1tality Rate or the
number of children dying before the age of one year per thousand births.

III. Gross Enrolment Ratio or literacy rate for three levels means enrolment
ratio for primary school, secondary school and higher education beyond
secondary school.

13. Find out the present source of energy used by the people in India. What
could be the possibilities fifty years from now?
i. At present we use conventional source of energy mostly like coal and
petroleum as the major source of energy.
ii. Since it is an exhaustible and non-renewable source of energy it may
not be available after fifty years.
iii. We use non-conventional source of energy like solar energy, wind energy,
and hydel energy to a small extent. After 50 years we have to depend on non-
conventional sources of energy only or we have to develop a new source of energy.
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 14. Why has Kerala a low infant mortality rate and a high literacy rate even
though the per capita income is comparatively low?

i. Kerala has a low infant mortality rate because it has adequate provision of
basic health and educational facilities. The Government spent a fair amount of money
in the field of health and education.
ii. The Public Distribution System functions properly in Kerala and essential
goods are supplied at a lower price than the market prices. Therefore, the health and
nutritional status of the people is very high.

15. How do public facilities stand as a clear indicator of development?

i. Money cannot protect you from diseases unless the whole community
takes preventive steps.
ii. You cannot get good education if the provision is not available to all or no one
else, other than you, is interested in education.
iii. Kerala has a low infant mortality rate because it has adequate provision
basic health and educational facilities. The Government spent a fair amount of money
the field of health and education.
iv. The Public Distribution System functions properly in Kerala and
essential goods are supplied at a price lower than the market prices. Therefore,
the health and nutritional status of the people is very high.

16. Why have the scientists of the 2nd half of the 21st• century been warning
that the present type and levels of development are not sustainable?

i. It is because the present type and levels of development is not

ecofriendly. It creates a lot of problems like ozone layer depletion, global
warming and environmental pollution.
ii. The present type and levels of development is not judicious-there is too
much over exploitation of resources causing depletion of resources by which the future
generation would suffer.