ECONOMICS

Chapter - 1
Development.
1. What do you understand by the term Development?

It is a process by which increase in growth, income, rise in living standard of the people and decrease or
reduction in the rate of poverty, economic inequality, illiteracy etc.

2. Write developmental goals of landless rural labourers.

(a) More days of work.
(b) Better wages.
(c) Better education for their children.
(d) Better health facilities

3. What may be development for one could be destruction for the other - explain by giving one
example.

Any development work may be beneficial for the people but that can bring difficulties for a particular
section of the society. Example - Construction of dams for generation of electricity for development of
industries can be a good demand by industrialists but they could be displaced for construction of the
dam

4. What are the different goals of development for the different people?
Majority of the people consider more income as the main goal of development.
Besides more income, people also seek other things like equal treatment, freedom security, respect of
religion etc

5. What aspect of life is more important than income? Give one example.

Sense of security and freedom is considered to be more important than income. Example - If we get a
job at a far off place, we shall think over about our security and welfare of our family members before
we will join that job.

6. Explain the term National Income.

It is total value of all the goods and services produced within the country and the income coming from
abroad

7. Explain the term per capital income.

It is the average income of one person in proportion with whole population of the country and national
income.

8. How is per capita income calculated?

Per Capita Income is calculated by dividing National Income with total population.

9. What other factors along with income are used to measure development?
Health and Education are considered important factors to measure development.

10. How are countries categorised In the Human Development Report , published by the UNDP?

countries are categorised by considering educational level of the people, health standards and per
capita income.

11. Why do you think average income is an important criterion for development?

Countries have different populations, comparing total income will not tell us what an average person is
likely to earn

12. What is main criteria used by the Worid Bank for classifying countries? What are the limitations of
their criterion?

As per World Development Report 2017 published by the World Bank countries were classified on
following basis -
(a) Rich or High Income Countries - Countries with Capita Income of 12056 dollar or more per annum.
(b) Poor or Low Income Countries - Countries with Per - Capita Income of 955 dollar or less per annum.
Limitations - It covers only economic aspects and other factors like health environment, education,
longevity etc are ignored

13.You cannot buy all the goods or services that you may need to live even with money in your
pocket? Comment.
1. Income by itself is not completely adequate indicator of material goods and services that citizens use.
For example, we cannot buy pollution free environment with money.
2. Money cannot assure of genuine medicines.
3. Money cannot protect us from all diseases.

4. Money cannot give us respect and freedom

14. What is infant mortality rate?

It is the number of deaths of children of below one year age as a proportion of per one thousand live
children born in that particular year.

15. Which important factors contribute towards human development?

Following main factors contribute to the human development

1. Average life of people.
2. Per Capita Income
3. Standard of living of the people.
4. Literacy, Health facilities.
5. Basic Rights

16. Why is Human Development Index important?

1. It indicates level of development of a country.
2. Through it, we come to know about the important elements of economic welfare like life expectancy,
level of education, health level and per capita income.

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

It is important because -
1) It cares for the needs of coming generations.
‚2) It promotes an efficient use of Natural Resources.
3) It emphasizes on quality of life.

18.In what respect criterion used by the UNDP for measuring development is different from one used
by the World Bank?
1) By UNDP -
• It takes into consideration education, health and per capita income as a base.
• It is a broader concept of development.
2) By World Bank -
• It takes per capita income as a base for classification.
• It is a narrow concept of development.
• It has divided all the countries into categories, namely, rich and poor.

19.Define (1) Literacy Rate

(2) Net Attendance Ratio.
1. Literacy Rate - It is percentage of people of 7 years and above who can read and write.
2. Net Attendance Ratio - It is the number of children in the age group of 14 and15 years going to school
in proportion to total number of children in this age group.

20. Why is Infant Mortality Rate low in Kerala?

(a) Due to." Better health facilities.

(b) Nutrition.
(C) Awareness in people due to good literacy rate.

21.Distinguish between Developed and Under-Developed countries.

1) Developed Countries -
• They have a higher per capita income.
• Their people have a high standard of living.
• Example - USA, UK, Italy, Japan, France
2) Under Developed Countries -
• They have a very low per capita income.
• People have a low living standard.
• Example - Kenya, Uganda, Nepal, Pakistan.

22.Compare India with Sri Lanka on the Human Development Index.

1. Per Capita Income - Sri Lanka has a higher per capita income.
2. Life Expectancy/Average Life Span - Average life span of people is higher in Sri Lanka than in India.
3. Literacy Rate - Literacy rate in Sri Lanka is higher than in India.

23. What is Sustainable Development?

The process of economic developments aimed at present and future needs for providing a better quality
of life to the people.

24. What may be development for one category, the same may be a destruction for the other - Explain
with examples.

Sometimes one developmental project is started with an objective to benefit a large number of people
but that may cause some difficulties or loss to a small section of the people. For Example -
3. A worker would demand more wages where as an industrialist would like to hire labourers at cheap
rates.
4. People would demand a construction of dam for more electricity whereas villagers and some farmers
may loose their lands or may be displaced.
5. A producer would like to sell goods at a higher rates whereas consumer would ask for lower rates.

25. Distinguish between Human Development and Economic Development.

1) Human Development -
• It takes care of human welfare on a larger scale.
• It includes non-monetary aspects also e.g. health, education etc.
• It is the ultimate objective of all developments.
2) Economic Development -
• It covers only a narrow aspect.
• It aims at monetary gains.
• Its ultimate aim is human development.

26. Give examples of environmental degradation that you may have observed around you.
1. Cutting of trees
2. Burning of Fossil Fuel.
3. Burning of Plastic

27. What are the different criterion used to compare development of states. Explain with examples.
Take the example of Haryana, Kerala and Bihar to compare development of states.
1. Per Capita Income - Per capita income of Haryana is more than Kerala. Bihar has lowest per capita
income.
2. Infant Mortality Rate - Infant mortality rate of Kerala is less than Haryana and Bihar.
3. Literacy Rate - Literacy rate of Kerala is higher than Haryana and Bihar. Page 23