ECONOMICS
CHAPTER 1 DEVELOPMENT
IMPORTANT QUESTIONS/ANSWER
1. Which one of the following is a development goal for all?
A) Increase in income
B) Better health facilities
C) Equal treatment and respect
D) All of the above
Answer: D) All of the above
2. What is the most common method of measuring economic development?
A) Literacy Rate
B) Health Index
C) Per Capita Income
D) Human Development Index
Answer: C) Per Capita Income
3. Which organization publishes the Human Development Report?
A) World Bank
B) IMF
C) WTO
D) UNDP
Answer: D) UNDP (United Nations Development Programme)
4. What does HDI stand for?
A) Human Development Investment
B) Human Development Index
C) Human Division Index
D) Human Data Indicator
Answer: B) Human Development Index
5. Kerala has a low infant mortality rate because of:
A) Good climatic conditions
B) Adequate infrastructure
C) High literacy rate and better public health services
D) More income
Answer: C) High literacy rate and better public health services
6. What is Per Capita Income? Why is it used to compare countries? Answer:
Per Capita Income = Total income of a country ÷ Total population.
It shows the average income of a person in a country.
It is used to compare countries because it gives a general idea of the
economic well-being of citizens.
7. Define HDI. What are its three indicators?
Answer: HDI stands for Human Development Index.
It measures development not only by income but also by education and
health.
Three indicators are:
1. Life expectancy at birth (health),
2. Mean years of schooling (education),
3. Per capita income (standard of living).
8. Why do different people have different development goals?
Answer: People have different needs and aspirations.
A landless farmer may want land; a businessman may want better
infrastructure.
Development is subjective and depends on individual situations and desires.
9. What is sustainable development? Why is it important?Answer:
Sustainable development means development that meets today’s needs
without harming future generations.
It emphasizes the use of renewable resources and environmental protection.
It is important for long-term welfare and survival of humanity.
10. Mention any three limitations of using per capita income as a measure of
development.
Answer: It ignores income distribution – does not show inequality.
It does not account for health and education.
It cannot measure environmental degradation or quality of life.
11. What does literacy rate indicate about a country?
Answer:It shows the percentage of people who can read and write.
A higher rate means better educational development.
It indicates the capacity of people to contribute to economic and social
growth.
12. Why is Kerala ahead in Human Development Index among Indian states?
Answer: High literacy rate and strong public health system.
Low infant mortality and better gender equality.
Effective social welfare programs by the state government.
13. What are public facilities? Give examples.
Answer: Public facilities are essential services provided by the government
for the welfare of people.
Examples: Healthcare, education, water supply, transport.
These facilities are collectively shared and not bought individually. 14.Explain
the meaning of ‘average income’.
Answer: It is the total income of a country divided by its population.
It is used to classify countries as rich or poor by international standards.
However, it does not reflect income disparities.
15. Why is it important to look at a combination of development goals and
not only income?
Answer: Income is only one part of development.
People also seek education, health, safety, equality, freedom, etc.
True development is multidimensional, covering material and non-material
aspects.
LONG QUESTION/ANSWERS
16. Explain the differences between developed and developing countries
with examples.
Answer: 1. Per Capita Income:
Developed countries have high per capita income.
Example: USA, Germany.
Developing countries have low to middle per capita income.
Example: India, Bangladesh.
2. Standard of Living:
Higher in developed nations due to better facilities and income.
Lower in developing countries due to limited access to services.
3. Health and Education:
Developed countries have excellent healthcare and education systems.
Developing countries still struggle with basic facilities.
4. Industrialization:
Developed nations are highly industrialized.
Developing nations rely more on agriculture.
5. Human Development Index (HDI):
HDI is very high in developed countries (above 0.8).
Developing countries have medium HDI (between 0.5–0.79).
17. What is the Human Development Index (HDI)? Explain its components
and importance.
Answer: 1. Definition: HDI is a composite index to measure the overall
development of a country.
2. Components: Life Expectancy at Birth – indicates health.
Mean and Expected Years of Schooling – indicates education.
Per Capita Income – indicates standard of living.
3. Importance: Goes beyond income to measure real well-being.
Helps compare development levels of countries.
Promotes policies to improve health and education.
4. Published by: United Nations Development Programme (UNDP).
5. Limitations: May still miss issues like inequality or environmental impact.
18. How do public facilities play an important role in the development of a
country?
Answer: 1. Definition: Services provided by the government to ensure basic
needs.
2. Health Facilities: Availability of hospitals, vaccinations, and clean
environment improves public health.
3. Education: Free schools and colleges raise literacy and skill levels.
4. Water and Sanitation: Public access to clean water and proper drainage
reduces diseases.
5. Transport and Infrastructure: Roads, railways, and electricity improve
connectivity and productivity.
19. Why is sustainable development essential? Suggest measures to ensure
sustainability.
Answer: 1. Definition: Using resources in a way that meets current needs
without harming future generations.
2. Need: Overuse of resources like water, fossil fuels, forests leads to
depletion and damage.
Ensures long-term survival of people and planet.
3. Measures: Use renewable resources like solar and wind energy.
Promote afforestation and reforestation.
Reduce, reuse, recycle to minimize waste.
Adopt eco-friendly technology.
Educate people on environmental protection.
4. Global Cooperation: Countries must work together through agreements
(e.g., Paris Agreement).
20. Explain the limitations of using per capita income as the only measure of
development.
Answer: 1. Ignores Inequality:
Averages do not show distribution of income. A few may earn a lot while
many earn little.
2. No Information on Health and Education:
Doesn’t reflect access to schools, hospitals, or life expectancy.
3. Overlooks Environmental Degradation:
High income may come at the cost of pollution and resource depletion.
4. Excludes Non-Monetary Aspects:
Doesn’t include freedom, security, gender equality, etc.
5. Better Alternative: HDI is a more comprehensive measure that combines
income, health, and education.
