ECONOMICS (X)-LESSON-1 DEVELOPMENT (QUESTION ANSWERS)

ECONOMICS (X)-LESSON-1

DEVELOPMENT

(QUESTION ANSWERS)

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(NCERT EXERCISE QUESTION ANSWERS)

 

1. Development of a country can generally be determined by

a.     its per capita income

b.    its average literacy level

c.     health status of its people

d.    all the above

Answer: d. all the above

2. Which of the following neighbouring countries has better performance in terms of human development than India?

a.     Bangladesh

b.    Sri Lanka

c.     Nepal

d.    Pakistan

Answer: b. Sri Lanka

3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family?

a.     Rs 7500

b.    Rs 3000

c.     Rs 2000

d.    Rs 6000

Answer: d. Rs 6000

(4000+7000+3000+x) ÷ 4 = 5000

14000+x = 5000 × 4

x = 20000-14000

x = 6000

4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

Answer: World Bank uses the per capita income to classify different countries. The per capita income is calculated by dividing the total income of the country by the population of the country. For the year 2017, the countries with per capita income of US $12,056 per annum were declared rich countries and the countries with per capita income of US $ 955 or less are called low-income countries.

The limitations of the criterion are:

1.    Other important factors, including literacy rate, infant mortality rate, healthcare, are ignored while classifying the countries.

2.    Information about the unequal distribution of income is not mentioned by The World Bank

3.    The economy of the country cannot determine the development of the country.

5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

Answer: The criterion used by UNDP is different from the one used by the World Bank because UNDP compares countries based on the educational level of the people, their health status and per capita income. This is in contrast with the method used by the World Bank because the World Bank only calculates the per capita income for measuring development.

6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.

Answer: Different countries have a different population, so calculating the average helps in getting an estimated answer which can be used to compare different things at different levels. There are limitations of calculating averages because we cannot know the difference in the income of the people and the unfair distribution of income in a country or state.

For example, if we calculate the per capita income of two countries A and B with 5 people each, the salary of five people in country A is Rs.23,000, Rs.22,000, Rs.23,500, Rs.28,000 and Rs.25,000 and the income of people living in country B are Rs.1,50,000, Rs. 22,000, Rs.50,000, Rs.4000, Rs.2500. The average income of country A will be Rs.24,300, and that of country B will be Rs.45,700. This proves that the average of country B is higher than that of country A, and yet there is a disparity in the income distribution of country B and the income is evenly distributed in country A.

7. Kerala, with lower per capita income has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

Answer: Kerala, with lower per capita income, has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. This is true because the literacy rate, infant mortality rate, healthcare facilities, etc. are better in Kerala in comparison to Haryana. The per capita income is only calculated by calculating the average income of the state, irrespective of any other factor.

8. Find out the present sources of energy that are used by the people in India. What could be the other possibilities fifty years from now?

Answer: The present sources of energy used by people in India include firewood, coal, petroleum, crude oil and natural gas. The other possibilities fifty years from now can be using solar energy and wind energy as a source for various energy forms. This is because the current usage of sources of energy may result in the loss of these resources for future generations.

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

Answer: Sustainable development refers to using natural resources in a manner so that they can be used by the present and future generations. The issue of sustainability is important for development because if the natural resources are not used carefully, they may not be available for future generations. The depleting resources of a country may ultimately result in a lack of development of the country.

10. “The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. How is this statement relevant to the discussion of development? Discuss.

Answer: Development not just depends on the economic factors of a country, but is also dependent on resources that are available for the people of a country to use. The statement: “The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person” is completely relevant in terms of the development of a country because natural resources are non-renewable resources. It is the responsibility of the people to use them only to meet their needs and not to satisfy their greed. If natural resources are not used wisely now, the future generations may not be able to use them for their needs, which will result in the downfall of development of a country.

11. List a few examples of environmental degradation that you may have observed around you.

Answer: A few examples of environmental degradation that we can observe around us are:

1.    Pollution caused by vehicles and the excess use of fuels in vehicles.

2.    Industrial waste collected in residential areas and discarded into water bodies

3.    Deforestation

4.    Mining

5.    Soil Erosion

The increased pollution in the environment has resulted in global warming and depletion of glaciers and the atmospheric conditions.

12. For each of the items given in Table 1.6, find out which country is at the top and which is at the bottom.

Answer: As per table 1.6, Sri Lanka tops in all the four categories. It has the highest Gross National Income, Life expectancy at birth, mean years of schooling of people aged 25 and above and HDI rank in the world. Nepal has the lowest Gross National Income among the given countries. Pakistan has the least Life Expectancy at birth and ranks the lowest HDI rank in the world among the given countries. Mean years of schooling of people aged 25 and above is the lowest for Myanmar and Nepal.

13. The following table shows the proportion of adults (aged 15-49 years) whose BMI is below normal (BMI <18.5 kg/m²) in India. It is based on a survey of various states for the year 2015-16. Look at the table and answer the following questions.

State	Male	Female
Kerala Karnataka Madhya Pradesh	8.5 17 28	10 21 28
All States	20	23

a.      

a.     Compare the nutritional level of people in Kerala and Madhya Pradesh.

Answer: The nutritional level of people in Kerala is higher than the nutritional level of people in Madhya Pradesh.

a.     Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words.

Answer: One-fifth of the population in the country are undernourished even though it is argued that there is enough food in the country because of the following reasons:

1.    The disparity in the distribution of food grains by Public Distribution System (PDS).

2.    Nutritious food cannot be afforded by the poor population in the country.

3.    Educational backwardness of people results in unemployment because of which people cannot afford the basic necessity of food.

4.    There is no proper distribution of ration at the fixed price stores.

 

 

OTHER IMPORTANT QUESTION ANSWERS

1. Define the term National Income?
Answer: National income is defined as the total value of all final goods and services produced with a country plus net income from transactions like (export and import) with other countries.

 2. Define GDP.
Answer: GDP or Gross Domestic Product is the total value of all final goods and services produced during a particular year in a country.

 3. What is the main criterion used by the World Bank in classifying different countries?
Answer: The World Bank uses average income or per capita income as a criterion for classifying different countries.

 4. Why is the total income of countries not used to make comparisons between them?
Answer: The total income of countries is not used to make comparisons between them, because the population of different countries is different and does not give a clear picture if comparisons are made on this basis.

 5. Literacy rate measures the proportion of literate population in which age group?
Answer: The age group of 7 years and above.

 6. Which state of India has the lowest infant mortality rate?
Answer: Kerala

 7. What is Human Development Index? (2013)
Answer: Human Development Index is a composite index of achievements of a nation in terms of three important variables, namely—longevity, knowledge and standard of living, that determine the quality of life.

 8. Name the report published by UNDP which compares countries based on the educational levels of the people, their health status and per capita income. (2013)
Answer: Human Development Report

 9. What term is used to describe the ‘average number of years a person is expected to live at birth’? (2013)
Answer: Life Expectancy

 10. What is the advantage of per capita income? Mention any one.
Answer: It helps to compare the development of countries as per capita income tells us whether people in one country are better off than others in a different country.

 11. What do final goods and services mean?
Answer: The various production activities in the primary, secondary and tertiary sector produce large number of goods and services for consumption and investment are final goods and services.

 12. Why is sustainable development essential? Give one reason.
Answer: Sustained development aims at economic development without damaging the environment and at the same time conserving for the future. Resources are to be used in such a way that they are not overexploited.

 13. Why is per capita income of different countries calculated in dollars and not in their own currencies by the World Bank?
Answer: Per capita income of different countries is calculated in dollars and not in their own currencies because the dollar has been the strongest and stablest currency since the end of the 2nd World War and it becomes easy to compare the per capita incomes of various countries when these are converted into a common currency, i.e., US dollar ($).

 14. “What may be development for one may not be development for the other.” Explain with a suitable example.
Answer: Different persons have different notions of development because life situations of persons are different. For example, Construction of dams leads to generation of hydroelectricity, thus development. However many people have to be displaced from their villages, hence it may not be development for them.

 15. What is meant by sustainability of development?
Answer: This signifies that the level of economic development of a country should be maintained or sustained in all the years. Development in the present should not compromise with the needs of the future generations.

 16. Define:

1.    Infant mortality rate

2.    Literacy rate

3.    Net attendance ratio

4.    BMI

Answer:

1.    Infant mortality rate. It indicates the number of children that die before the age of 1 year as a proportion of 1000 live children bom in that particular year.

2.    Literacy rate. It measures the proportion of literate population in the 7 and above age group.

3.    Net Attendance ratio. It is the total number of children of age group 6 to 10 attending school as a percentage of total number of children in the same age group.

4.    BMI stands for Body Mass Index. It is calculated by dividing the weight of a person in kilograms (kgs) by the square of his/her height in metres. It is an indicator of the level of nourishment in adults.

 17. Literacy rate measures the proportion of literate population in which age group?
Answer: The age group of 7 years and above.

Short Answer s (SA) 3 Marks

 18. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.
Answer:

1.    Total income is not a useful measure for comparison between countries. Since countries have different populations, comparing total income does not tell what an average person is likely to earn. Hence, we use average income which is total income of the country divided by total population.

2.    The defect of average as a measure is that it does not show the distribution (dispersion) of income between the rich and the poor.

3.    Two countries may have the same average income but in one country almost every family may enjoy more or less the same kind of income, whereas in the other, some may be very rich and others very poor. The disparity between rich and poor is an important feature that the average measure (per capita income) does not consider.
Example: In terms of development, we can take the example of India, where the metro towns are full of high-rise buildings and shopping malls while some villages have not yet been provided with a basic necessity like electricity.

 19. What is per capita income? Mention any two limitations of per capita income as an indicator of development.
Answer: The total income of a country divided by its total population gives the Per Capita Income.
Money cannot buy all the goods and services that are needed to live well. So income by itself is not a completely adequate indicator of material goods and services that citizens are able to use. For example, money can not buy a pollution-free environment or ensure that one gets unadulterated medicines, unless one can afford to shift to a community that already has all these things.

 20. Kerala, with lower per capita income, has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare States. Do you agree? Discuss.
Answer: Per capita income is not a useful criterion at all to measure the human development ranking of a state. High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life. Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a good standard of living. In order to achieve these, joint efforts have to be made by all members of a community, be it rich or poor.
Kerala ranks higher compared to Punjab even with a lower per capita income because—

1.    mortality rate is lower

2.    literacy rate is higher and

3.    total number of children attending school (Classes I-V) is higher.

 21. On the basis of which three indicators of HDI 2004 Sri Lanka has better rank than India?
Answer: Three indicators of HDI 2004 in which Sri Lanka has better rank than India:

1.    Per capita income—The per capita income of Sri Lanka in US dollars was 4,390 US dollars while that of India was 3,139 US dollars.

2.    Life expectancy at birth—The life expectancy at birth for Sri Lanka was 74, higher than that of India at 64.

3.    Gross enrolment ratio for three levels—Sri Lanka had Gross Enrolment ratio of 69 while that of India was 60.

 22. ‘Conflicting goals can also be developmental goals’. Elaborate with examples.
Answer: All persons do not have the same notion of development or progress. Each one of them seeks different things. The seek things that are most important for them, i.e., that which can fulfil their aspirations or desires. In fact at times two persons or groups of persons may seek things which are conflicting.

A girl expects as much freedom and opportunity as her brother and that he also shares in the household work. Her brother may not like this.

To get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced, such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

 23. What are common developmental goals? Give any two suitable examples of common developmental goals. (2015)
Answer: There are certain goals which are the same or common for all. These are common developmental goals. The developmental goals that people have are not only about better income but also about other important things in life. More income or more material goods do not always give us a good quality life.

There are other aspects such as equal treatment, freedom, security, opportunity to learn, good working conditions, pollution-free atmosphere, job security and good social life which are very important for a good quality life. Money or material things that one can buy with it, is one factor on which our life depends. But quality of our life also depends on non-material things, for example, the role of our friends in our life which cannot be measured but mean a lot to us.

 24. “Money cannot buy all the goods and services that one needs to live well” Do you agree with this statement? Justify your answer with any three suitable arguments.
Answer: Yes, I agree with the statement because money income and material goods alone are not an adequate indicator of a good quality of life. Money cannot buy all the goods and services one needs to live well.

·        Money cannot buy a pollution free and dean environment with fresh air.

·        It cannot protect us from infectious diseases and guarantee good health for us.

·        Money cannot assure that medicines available in the market are not adulterated.
To live well one needs non-material factors such as equal treatment, freedom, security, equal opportunity to learn, a pollution free environment, good and safe working conditions etc.

 25. Apart from income, which other six things people look for as important aspects of our lives?
Answer: High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life. Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, job security, good working conditions, etc. are essential for a good standard of living.

 26. One what basis the rich and low income countries have been categorized in the world? What are the limitations of this approach? According to the World Development Report, 2006, India comes in which category? Give reason for the same.
Answer: The World Bank uses average income or per capita income as a criterion for classifying different countries. Countries with per capita income of ?4,53,000 per annum and above (in the year 2004) are called rich countries and those with per capita income of ?37,000 or less are called low income countries (India comes under low income countries; the per capita income in India is ?28,000 per annum). Those falling in between ₹37,000 – ₹4,53,000 are placed in the middle category.

Limitations of this criterion.

1.    While averages are useful for comparison, they also hide disparities. Two countries may have identical average income, but one country may have equitable distribution where people are neither very rich nor very poor, while in the other country most citizens are very poor and very few are extremely rich,

2.    Better income cannot ensure a good quality life. Criterion set by the World Bank has ignored certain attributes of a good life which do not depend on income or cannot be . bought with money.
Example, freedom, equal treatment, equal opportunities, free atmosphere, provision of unadulterated medicines, etc.

 27. Why do people look at a mix of goals for development? Explain.
Answer: Though income is one of the most important components of development, but there are other important goals which people look at for development—

1.    People also seek things like equal treatment, freedom, security and respect.

2.    Women need a safe and secure environment to take up a variety of jobs or to run businesses as entrepreneurs.

3.    People seek a pollution free environment.

4.    Students seek better education and equal opportunities to learn.

LONG ANSWER S (LA) 5 MARKS

 28. Why do different persons have different notions of development? Which of the following explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.
Answer: The correct explanation is ‘Because life situations of persons are different.’
Developmental goals are different for different categories of people because of their different aspirations. Aspirations are based on their needs. At times people may have conflicting developmental goals also. What may be development for one may not be development for another. It may even be destructive for the other.

Example, Industrialists may want construction of more dams for more electricity, but this may lead to displacement of tribals who live in those areas and thereby disrupt their lives.

Example, The inhabitants of Nandigram in West Bengal are mainly agriculturists and their aspirations are to see development in the field of agriculture, whereas to some it may appear that industrial advancement is more necessary for national development.

 29. What does HDI stand for? Explain the main criteria of measuring HDI according to UNDP Report of 1990. (2015)
Answer: HDI Stand for Human Development Index.
Main criteria of measuring HDI:

1.    HDI published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.

2.    HDI determines the rank of a country by its overall achievement in three areas, i.e., life expectancy, educational level and per capita income.

3.    Many improvements have been suggested in calculating HDI and many new components have been added to Human Development Report.

4.    Pre-fixing Human to Development, it has made it clear that what is important in development is what is happening to citizens of a country, i.e., the health and well being of the people is most important.

  30. Explain any five fields other than income where development is needed. (2012)
Answer: Fields other than income where development is needed:

1.    Education. The government must provide adequate education facilities in all rural and urban areas. The government must necessarily focus on education for girls so that all girls are able to acquire atleast secondary level schooling. Running proper schools and providing quality education, particularly elementary education, is the duty of the Government.

2.    Health. Basic health care facilities are a must for all. Establishment of government hospitals, clinics and dispensaries, especially in rural areas, to provide subsidized and unadulterated medicines to the poorer sections of society.

3.    Nutrition. An effective Public Distribution System—proper functioning of ration shops and equitable distribution of foodgrains is very essential.

4.    Transportation. A well developed public transport system to make it easy for general public to commute.

5.    Electricity. It is the duty of the government to provide electricity and water at reasonable rates to the common man and prevent him from exploitation by private companies.