ECONOMICS
LESSON NO. 1- DEVELOPMENT
NOTES
TOPIC NO- 1- INTRODUCTION, WHAT DEVELOPMENT PROMISES,
INCOME AND OTHER GOALS(PG.NO.3-5)
Q1.What is development? Mention two aspects of development?
Ans: Development is a positive growth or change in economic, social and
political aspects of a country.
Two aspects of development are:
1. Different people have different development goals.
2. What may be development for one may not be development for
others.
Q2.Explain with the help of five examples how development could mean
different things to different people.
Ans: The following examples show that development could mean
different things to different people:
1. Construction of dam may be beneficial for the generation of electricity.
Urban areas may benefit from it but the rural areas may be
submerged under water.
2. Multinational companies may be seen as symbol of development. But
companies may hamper the small producers as they may not be able
to compete with the huge foreign exchange and modern technology.
3. A girl may try to seek freedom and opportunity as her brother for
development, but this notion may not be liked by the parents.
4. Women may seek desirable reservation in election to local bodies for
their development. Male dominated society may not approve it fearing
their share being divided.
5. The school may seek increase in tuition fee for the advancement of
education facilities, but the parents may find it difficult to bear.
Q3.”Development for one may be the destruction for other.” Do you agree
with the statement? Justify your answer.
Ans: 1. I certainly agree with the statement that development for one may
be the destruction for other.
2 People have different developmental goals. They seek what is most
important for them and fulfill their aspiration and desires.
3 For e.g. - The establishment of a dam leads to infrastructural
development, generation of electricity, but at the same time, it may leads to
large scale displacement of people loss of livelihood, shelter. Hence
construction of dam may be development for some, but may be destruction
for other.
Q4. Describe any five condition or aspects that you would consider before
accepting a job in abroad.
Ans: Before accepting a job offer I would look into the following
condition-
1. Working condition: Safe and comfortable working condition are
desirable.
2. Working environment: Co-workers should be friendly and
cooperative.
3. Future growth: A job should offer future growth and promotion.
4. Location: Too far a working place is not a good choice. Travelling can
take most of the productive time.
5. Benefits: Salary is just one part of a job. We must also consider
health benefits, medical leaves insurance, funds bonus.
Topic No.2- National Development, How to compare different
countries, Income and other criteria ( Pg No. 6-10)
Q5 Is per capita income a true measure of development? Elaborate.
OR
What is Per Capita Income? How is it calculated? Why is “Per Capita
Income” not an adequate indicator of economic development of a country?
Explain.
Ans: 1. Per Capita Income is the average income. It is income per head of
the population per years.
2 Per Capita Income = Total income of country
Total Population
3 It is not an adequate indicator because:
a) Country have different population, comparing total income will not tell
us how the income is distributed.
b) Average are useful but they also hide the disparities because they do
not tell us how the income is distributed.
c) Life expectancy and infant mortality rate are other important criteria
for measuring development.
Q 6 What is the main criterion used by the World Bank in classifying
different country? What are their limitations?
Ans: 1. Per Capita Income or Average income is the main criterion used by
the World Bank to classify different countries as developed and under
developed countries.
2 The per capita is calculated by dividing the total income of a country by its
population. Countries with per capita income of USD 12475 or more termed
as rich countries.
3 Countries with per capita income of USD 1025-12475 is low middle
income country. Countries with per capita income of USD 1025 or less is
termed as low income country.
Per Capita income as indicators of development suffers many
limitation:
a) National income is estimated in the domestic currency of each country.
This estimate is converted into dollar at the current rate of exchange,
such a conversion does not tell us anything about the purchasing
power.
b) Per Capita income is affected by the size of population of a country. If
a country has a large population, its per capita income will be low,
despite having large national income. Country having a smaller
population will have higher per capita income.
c) Per Capita income does not tell us anything about the availability of
various services and facilities that influence the quality of life. Even
countries with high per capita income are not able to provide its people
the quality of life they deserve.
Q7. In what respects is the criterion used by the UNDP for measuring
development different from the one used by World Bank.
Ans: 1 The UNDP(United Nation Development Programme) compares the
development of the countries on the basis of the countries on the basis of
literacy rate, gross enrolment and health status of their people. On the other
hand the World Bank compares the development of the countries on the
basis of per capita income.
2 On the basis of the comparison done by the UNDP, the countries are
ranked as first, second, third and so on, whereas on the basis of comparison
done by World Bank countries are divided into three categories-
a) Rich or developed countries( USD 12476 and above )
b) Middle income or developing countries (USD 1025-12475)
c) Poor or under develop country(USD 1025 and less)
3 The UNDP has a broader concept of development and World Bank has a
narrow concept of development.
Q8 Why do we use averages? Are there any limitations to their use?
Ans: We use averages for comparisons purposes due to following
reasons-
1. It indicates the distribution of total income amongst the total
population of the country.
2. It is easy to calculate and understand.
3. It helps in comparison amongst different countries based on their
income and population.
The following are the limitation to the use of averages-
1. It does not indicate the difference and difference and distribution of
income among rich and poor people.
2. It does not show the health status and level of education available to
the people of the country.
Q9 “Increase in income alone is not sufficient for the development of
nation”. Examine the statement with three suitable points.
Ans: 1. An individual would like to work at a place where he feels safety.
2 Equal treatment, freedom and respect of life is also desirable.
3 The quality of life also depends on non-material things.
Q10. “Money in your pocket can not buy all the goods and services that you
need to live well”. Support the statement with suitable example.
Ans: 1. Money can buy material things.
2 Money cannot buy –pollution free environment, unadulterated
medicines and social peace.
3 Money cannot protect you from infectious diseases.
Q11.Find out the present sources of energy that are by the people in India.
What could be the other possibilities fifty years from now?
Ans: The following are the sources of energy used by the people in
India:
1) Conventional Sources of energy: Coal, Petroleum, Natural gas,
Electricity, Diesel and wood.
2) Non-Conventional Sources of energy: Solar Energy, Wind Energy
,Nuclear Power Energy ,Bio- gas
After fifty years, these sources of energy in India will become scare. Even
today, India depends on oil import because it does not produce enough oil
domestically. Apart from this, there will be some new sources of energy
which may start in our day-to-day life are- tidal energy, geothermal energy,
atomic energy.
Q12. Mohit is 28 years of age, has 65 kg of body weight and is 1.4 meters
tall. Calculate his BMI. Find out whether he is under nourished or over
weight. Why?
Ans: Body Weight = 65 kg, Height= 1.4 meter
BMI= Weight kg) = 65 =33.16 units
(Height)2 mtr. (1.4)2
BMI (Body Mass Index) of less than 18.5 classifies a person as underweight,
between 18.5 and 25 as normal and between 25 and above as overweight.
Hence, he is overweight as his BMI exceed 25 units.
Topic 3 – Sustainability of Development (pg no. 14-16)
Q13. Why is the issue of sustainability important for development?
Ans: Sustainability is important for development for following
reasons-
1. It takes care of the needs of the future generations.
2. It promotes an efficient use of natural resources.
3. It lays emphasis on quality of life.
Q14. “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.
Ans: This statement is said by Mahatma Gandhi-
1. ‘It means that the earth has abundant resources to satisfy everyone’s
needs but in our greed and hurry to develop, we have been recklessly
exploiting these resources.
2. In name of development we have indulged in activities like
deforestation, overgrazing, encroachment into forest lands, overuse of
ground water and use of plastic.
3. The exploitation of natural resources not only harms the environment
but may cripple the future generations of the development process
itself.
4. If fossil fuels are exhausted the development of all countries would be
in risk.
5. Thus there is a need for conservation and judicious use of resources
for development.
Q15. Explain the importance of sustainable development by giving the
example of ground water.
Ans: 1. Sustainable development is all about judicious use of resources at
present keeping in mind the future requirement of the coming generation.
2 Ground water is over used for agriculture.
3 Water is drawn from wells and this leaves the underground water table
depleted.
4 Since water is renewable resource, we must help in replenishing water.
5 We would be overusing the resources, if use more than what is being
replenished.
Q16. What is Public Distribution System? Explain its two advantages.
Ans: Public Distribution System: It is a system to distribute ration to the
poor at a reasonable rate through government ration shops.
Advantages:
1. Poor people get the food items at a reasonable rate.
2. Health and nutritional status of the poor can be bettered.
Q17. “Consequences of environmental degradation do not respect national
or state boundaries.” Support the statement with examples.
Ans: Environmental degradation is not restricted to the nation or state
boundaries. Its consequences have been felt in the surrounding states and
neighboring countries:
1. Pollution in one country may affect the other in form of acid rains,
climate change.
2. Deforestation in some countries may disturb pattern in surrounding
country.
3. Land degradation, dam burst can bring massive flood situation in
neighboring areas or country.
Q18 What is sustainable development? Suggest some ways in which
resources can be used judiciously.
Ans: Sustainable development refers to the development without hampering
the needs of the future generation.
Ways in which the resources can be used judiciously:
1. Stress on developing technique for the economical extraction of
resources.
2. Use of alternative sources of resources.
3. Effective steps to recycle used resources.
4. Using the least amount of non-renewable resources.
5. Introduction of organic farming.
