 ECONOMICS

DEVELOPMENT

I.CHOOSE THE CORRECT ANSWERS

1. We can obtain per capita income of a country by calculating:

a. the total income of a person

b. by dividing the national income by the total population of a country

c. the total value of all goods and services

d. the total exports of the country

2. Kerala has low infant Mortality Rate because:

a. it has good climate condition

b. it has adequate infrastructure

c. it has adequate provision of basic health and educational facilities

d. it has poor net attendance ratio

3. Human Development Index compares countries based on which of the following levels of the

people?

a. education level b. health status c. per capita income d. All of the above

4. What does infant mortality indicate?

a. Literate population in the 7 and above age

b. The number of children that die before the age of one year as a proportion of 1000 live children.

c. The total number of children attending the school. d. The number of children born in a year.

5. According to the World Bank, the criterion used to classify countries with the income of Rs. 4,53,000

per annum and above in 2004 is considered as:

a. Low income countries b. Rich countries c. Average countries d. Underdeveloped countries

6. Which of the following things money cannot buy?

a. Building b. Flowers c. Pollution free environment d. Books

7. Which one of the following is not a measure of development in the Human Development Report of

the UNDP?

a. Per capita income in US$

b. Education Levels of the people

c. Body Mass Index

d. Life expectancy at birth

8. In which state of India infant mortality rate is the lowest?

a. Kerala b. Bihar c. Uttar Pradesh d. Punjab

9. BMI (Body Mass Index) is a method of finding out which of the following?

a. Infant Mortality b. Health status c. Longevity d. Economic Status

10. Which of the following neighbour of India ranks higher on the Human Development Index?

a. Nepal b. Sri Lanka c. Bhutan d. Pakistan

11. According to World Development Report a country is considered rich when the per capita income
is more than:

a. Rs.24,000 per annum

b. Rs.37,000 per annum

c. Rs.4,53,000 per annum

d. Rs.5,43,000 per annum

12. Income alone is not a completely adequate indicator of development of a country. Which one of
the following is not correct with regard to this statement?

a. Money cannot ensure a pollution free environment for individual

b. Some people earn more than others do

c. Money helps us buy only material goods and services

d. Money does not ensure respect and dignity for individuals

13. Development goals of different sections of our society can be achieved by:

a. Force b. Democratic Political process c. Violent Agitation d. Terrorism

14. In order to get more income people need: -

a. Regular work b. Better wages c. Decent price for their crops d. All of these

15. Things like equal treatment, freedom, security and respect for others are:-

a. Material things b. Non-material things c. Income d. Growth

16. National Development refers to:-

a. Equality b. Democratic c. Employment d. Development of all sections

17. Per capita income refers to :-

a. Whole income b. Average income c. National Income d. None of these

18. Literacy measures the proportion of literate population in the __________age group.

a. 5 and above b. 6 and above c. 7 and above d. 8 and above

II ASSERSTION – REASON QUESTIONS

In the following given below, there are two statements marked as Assertion (A) and Reason(R). Read

the statements and choose the correct code.

a. Both A and R is true and R is the correct explanation of A.

b. Both A and R is true but R is not the correct explanation of A.

c. A is correct but R is false.

d. A is false but R is correct.

1. Assertion (A) Different people having different development goals.

Reason (R) People want freedom, equality, security and respect.

2. Assertion (A) A high average income is not indicative of the overall wellbeing of a country.

Reason (R) Average income does not cover human development indicates like level of

education, health and public facilities.

3. Assertion (A) A country at present has very high national income due to surplus oil resource.

However it is essential to look for alternative sources of income also.

Reason (R) Oil is a natural resource that is non-renewable in nature. If it is not used judiciously
then it will get exhausted soon.

4. Assertion (A) Different people have different developmental goals.

Reason ( R ) the capitalist approach to development is detrimental to poor section of society.

5. Assertion (A) Suppose the literacy rate in a state is 78% and the the net attendance ratio in

secondary stage is 47%.

Reason ( R ) More than half of the students are going to other states for elementary education.

6. Assertion (A) A high average income is not indicative of the overall well-being or human

development in a country..

Reason (R) Average income does not cover indicators like level of literacy rate, health facilities

and public facilities in a country.

7. Assertion (A) Sustainable development is a crucial step for the development of a country.

Reason ( R ) Sustainability is the capability to use the resources judicious and maintain

ecological balance.

III CASE STUDY BASED QUESTIONS-

Read the following source and answer the questions given below.

1. You will notice one common thing: what people desire are regular work, better wages, and

decent price for their crops or other products that they produce. In other words, they want

more income. Besides seeking more income, one-way or the other, people also seek things

like equal treatment, freedom, security, and respect of others. They resent discrimination. All

these are important goals. In fact, in some cases, these may be more important than more

income or more consumption because material goods are not all that you need to live.

Money, or material things that one can buy with it, is one factor on which our life depends. But

the quality of our life also depends on non-material things mentioned above.

If it is not obvious to you, then just think of the role of your friends in your life. You may desire

their friendship. Similarly, there are many things that are not easily measured but they mean a lot
to our lives. These are often ignored. However, it will be wrong to conclude that what cannot be

measured is not important.Similarly, for development, people look at a mix of goals. It is true that if
women are engaged in paid work, their dignity in the house hold and society increases. However, it is
also the case that if there is respect for women there would be more sharing of housework and a
greater acceptance of women working outside. A safe and secure environment may allow more
women to take up a variety of jobs or run a business.

Which is the most common method of measuring economic development?

a) Income

b) Selling of produce

c) Import and export

d) Employment

ii) Stable income is attained through

a) better wages

b) Regular work

c) Work opportunities

d) Decent price for crops and other products

iii) Besides seeking more income, there is something people resent, what it is?

a) Discrimination

b) Poverty

c) No work

d) Getting fewer wages for more work

iv) If women are engaged in paid work, what difference does it make?

a) Their dignity in the household and society decreases.

b) No difference

c) Their dignity in the household and society increases.

d) None of the above

2. For comparing countries, their income is considered to be one of the most important
attributes. Countries with higher income are more developed than others with less

income. This is based on the understanding that 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. So, greater income itself is considered to be one

important goal. Now, what is the income of country? Intuitively, the income of the

country is the income of all the residents of the country. This gives us the total income of the country.
However, for comparison between countries, total income is not such an useful measure. Since,
countries have different populations, comparing total income will not tell us what an average person
is likely to earn. Are people in one country better off than others in a different country? Hence, we
compare the average income which is the total income of the country divided by its total population.
The average income is also called per capita income. In World Development Reports, brought out by
the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$
12,056 per annum and above in 2017, are called rich countries and those with per capita income of
US$ 955 or less are called low-income countries. India comes in the category of low middle income
countries because it’s per capita income in 2017was just US$1820 per annum. The rich countries,
excluding countries of Middle East and certain other small countries, are generally called developed
countries.

i) The passage given above relates to which of the following options?

a) education b) income c) health d) all of these

ii) The income of the country is the income of:-

a) few states of the country b) tax collected from public

c) deposits in the bank accounts d) all the residents of the country

iii) The income which is the total income f the country divided by its total population is known as:

a) average income b) per capita income c) revenue income d) all of the above

iv) India comes in which of the following categories of countries based on Per Capita

Income?

a) Rich countries b) Low-income countries

c) Low middle income countries d) Highest income countries