STUDY MATERIAL
QUESTION BANK AND ANSWER KEY
ECO: CHAPTER-1
Short answer type questions
1. Write a paragraph on your nation that what should India do, to become a developed
country?
Ans. (i) Control the rate of increasing population.
(ii) Use of latest technology, irrigation facility, chemical fertilizers, and all information
should be provided to farmers.
(iii) New economic policy, international trade, liberalization and globalization should be
adopted sincerely and effectively.
(iv) Adequate facilities related with infrastructure, education, health, electricity, water,
transport etc should be provided to all people of all regions and areas.
2. What is the main criteria used by the World Bank in classifying different countries?
What are the limitations of this criterion, if any?
Ans. Per capita income is the main criteria used by World Bank.
Limitations of per capita income:
- It fails to show how income is distributed among the people of the country.
3. Do all persons have the same notion of development? Explain.
Ans. 1. No, all persons have not same notion of development.
2. All the persons have their own different development notions.
3. It differs from person to person.
4. The notion of development of one person may not be development notion of another
person.
5. The development notion of a student may not be the development notion of a teacher.
4. Explain the important aspects of our lives that are important than income.
OR
Explain the importance of non-Materialistic things in our lives.
Ans. 1. Besides higher income, people also want to seek other important non-material things.
2. For instance people want to have equal treatment, freedom, security, respect in the society,
tension-free life, affectionate behaviour and they dislike discrimination.
3. All these are important non material goals.
5. Explain the goals of different persons may sometime be conflicting.
Ans. 1. It is possible that two different categories of people may seek things which are
conflicting to each other.
2. For instance a new generation girl would like to have as much freedom as her brother and
expects that her brother should also share in the households.
3. Similarly workers in a factory are interested in higher wages and more facilities.
6. Explain any three limitations of per capita income?
Ans. 1. Since per capita income is an average measure, it is possible that with the increase in
income the rich may become richer and poor poorer.
2. It is thus possible that with the increase in per capita income greater inequality in the
distribution of income may crop up.
3. Average income is undoubtedly useful comparison but it does not tell us how income is
distributed among people in a country, it may hide disparities.
4. - Some other important aspects like infant mortality rate, literacy rate, net attendance ratio
etc are not considered while calculating per capita income.
7. What is the main concern with regard to sustainable development?
Ans. 1. The main concern of the sustainable development is to save the resources from its
depletion.
2. Development should take place but not at the cost of environment.
3. Resources should be reserved for future generations.
8. What is environment degradation? Give a few examples?
Ans. 1. Environment degradation refers to the degradation of natural resources and pollution.
2. Global warming is the result of environment degradation.
3. Depletion of resources is also an example of environment degradation.
4. Extinction of flora and fauna is also an example of environment degradation.
5. Degradation of land resources.
10. Which recent report is the basis for the classification of countries as developed
and low income countries?
Ans. 1. The average income called per capita income criterion is used in classifying
countries.
2. In the World development report 2006, brought out by the World Bank, This criterion is
used in classifying countries as developed countries and low income countries.
11. Explain the terms average income and national income.
Ans. 1. Average income: Average income is the total income of the country divided by its
total population. It is also known as per capita income.
2. National Income: It is the sum total of value of all the final goods and services produced
within the country and income from foreign factors.
12. How are countries classified by World Development Report?
Ans. 1. World Development Report 2006, brought out by the World Bank, this criterion is
used in classifying countries.
2. Countries with per capita income of Rs 453000 per annum are called rich or developed
countries.
3. Those with per capita income of Rs 37000 or less are called low income countries.
13. How do we calculate the total income of a country and what is meant by Per
capita income?
Ans. 1. The total income of a country is the income of all the residents of that country.
2. This gives us the total income of the country.
3. The average income called per capita income is calculated as the total income of the
country that is national income, divided by its total population.
14. Which non material factors a person considers before accepting a job to a far-off
place?
Ans. 1. Facilities for him and his family.
2. Good working atmosphere.
3. More opportunities of learning.
4. Chances of growth.
5. Job security and Social security.
15. 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?
Ans. Total income of four families =5000*4 =Rs 20000
Total income of three families =4000+7000+3000 =Rs 14000
Total income of the fourth family is = 20000-14000 =Rs 6000
16. Study the data given in the table and answer the following questions.
Some Comparative Data on Punjab, Kerala and Bihar
Infant Mortality rate per 1000 Literacy rate (%) Net Attendance ratio for class I-V
State
(2003) 2001 (1995-96)
Punjab49 70 81
Kerala 11 91 91
Bihar 60 41 41
1. Compare the infant mortality rate of Punjab with that of Kerala?
2. Compare the literacy rate of Bihar with that of Kerala?
Compare Net Attendance ratio with Punjab.
Ans. 1. Punjab has a high infant mortality rate that is 49, as comparison to Kerala. Kerala has
only 11.
2. Bihar has only 47% literacy rate that is very less as comparison to Kerala. Kerala has 91%
literacy rate.
3. Bihar has a very low net attendance ratio in comparison to Punjab. Bihar has 41 and
Punjab as 81 net attendance ratios.
17. If the national income of a country is Rs 5, 678, 880, 00 and the per capita income
is Rs 2000. Find the population of the country.
Ans. We know that, Per Capita income = National Income / Population
Per Capita Income= Rs 2000
National Income= Rs 5, 678, 880, 00
Population=?
Suppose population =x
2000=Rs5,678,880,00x2000=Rs5,678,880,00x
2000 ×= 5, 678, 880, 00
x=5,678,880,002000x=5,678,880,002000
POPULATION = 283944
18. ‘Human development is the essence of social development.’ Explain
Ans. 1. Human development focuses on the people.
2. It is concerned with the well being of the people, their needs, choices and desires.
3. It is also about the enlarging or widening the choices for the people. It is building of human
capabilities, such as to lead a long and a healthy life, to have education, information and
knowledge.
4. Human development focuses on the expansion of basic choices.
19. What India should do to become a developed country?
Ans. 1. India should take a effective steps to control its population.
2. Modern technology should be used in industrial as we as in agricultural sectors.
3. Effective education system should be implemented.
4. More and more person should be engaged in secondary and territory sectors.
20. Which sources of energy are used by us today? What could be possibilities fifty
years from now?
Ans. 1. We use different types of sources of energy.
2. These include sources such as coal, natural gas, water, petroleum.
3. But by fifty years from now we may use sources such as solar, tidal and wind energy.
4. The conventional sources of energy are drying up.
22. Comparison of Two countries:
Country Monthly income of citizens in 2008 I II III IV v
(in Rs)
Country A 95001050098001000010200
Country B 500 500 500 500 48000
1. Calculate the average income of country A and B.
2. Are both countries equally developed? If not why?
3. Which country is better and why?
Ans . 1. Country A- Average income- 10000
Country B- Average income-10000
2. No, Both countries are not equally developed because in country a, income distribution is
equitably done while in country B, most citizens are poor except one who is extremely rich.
3. The condition of country A is better because in Country A, income distribution is equal.
23. Compare India and Sri Lanka on the basis of any three indicators of
Human Development Index for 2004.
Ans. 1. The Life Expectancy: The life expectancy at birth is much higher in Sri Lanka than
India. The Life expectancy in Sri Lanka is 74 while in India it is 64.
2. Literacy rate: The Literacy rate in Sri Lanka is high as comparison to India. It was 91% in
Sri Lanka and 64% in India in 2004.
3. Gross Enrolment ratio: Gross enrolment ratio of India was 60 and it was 69 in Sri Lanka it
was 69 in 2004.
24. What developmental goals encourage women to work outside their home?
Ans. 1. The dignity if women in household and society increases if women do paid work.
2. When there is respect for women the members of the household are willing to share
housework.
3. A person accepts that women working for outside their homes earn a livelihood.
4. A safe and secure environment may allow more women to take up a variety of jobs or run a
business.
25. Explain the consequences the world face if non-renewable resources get exhausted in
the world?
Ans. 1. Speed of development will be slowed sown.
2. People will face a lot of problems.
3. The situation of life will become very difficult.
4. People will try to find out the alternative resources of the renewable resources.
5. It will also cause a threat to the world peace.
26. Mention the characteristics of development.
Ans. 1. Different people have different development goals.
2. What may be development goal for one person may not be development goal for the other.
It may be destructive.
3. Income of the most important component of development, but along with income, people
also seek equal treatment, good health, peace and literacy.
4. For development people look at mix goal.
28. What do you mean by public facilities? Why are they important? Give Example.
Ans. 1. Public facilities are the essential facilities for the community at large and are
provided by the government.
2. They are important because there are many services like health, transportation,
communication, education etc., which have become cheap and affordable for ordinary people
if provided effectively.
3. Rail transportation, government school, colleges and public transport system are the
examples of public facilities.
29. Why is literacy essential for the economic development of a country? Explain.
Ans. 1. Literate people are the good human resource and they are the assets of a country.
2. If Japan is developed country, the whole credit goes to the good human resources of that
country.
3. Through literacy we can remove the shortage of skilled labour.
30. Is it correct to say that environmental degradation is not just a national issue?
Explain the statement suitable arguments.
Ans. Yes, it is correct to say that environmental degradation is not just a national issue. It is
serious issue of public concern. Public also has to take an individual responsibility to save
environment from its depletion. Awareness should be spread all over the world. Earth is not
the property of the governments of the world and of the different nations of the world. It is
property of all the living beings those who are living here. So it is the duty of public and all
individuals to save it from further depletion. Sustainable development emphasizes the
development that will allow all future generations to have a potential average quality of life
that is at least as high as that which being enjoyed by the current generation.
31. Look at the following table for crude oil. Try to find out that, what type of
estimates and indications are given by this table.
Reserves (Billion tones) Number of
Region/ Country Reserves will last
years
Middle East 89 93
United States of
4 10
America
World 137 43
CRUDE OIL RESERVES OF
Ans. 1. The table gives an estimate of reserves of crude oil.
2. More important, it also tells us for how many years the stock of crude oil will last if people
continue to extract it at the present rate.
3. The reserves would last only 43 years more.
33. What is meant by sustainable economic development? Give its main features.
Ans. Sustainable development may be defined as development that meets the need of the
present generation without compromising the need of ability of the future generations to meet
their own needs. Environment and economy are inter-dependent and complementary to each
other. Hence the process of development should not ignore environmental issues.
The main features of sustainable development are as follow:
(i) It stresses meeting the needs of the present generation and future generation.
(ii) There should be restraints on wasteful luxurious consumption pattern.
(iii) Efforts should be made to invent environment friendly technology.
(iv) Fast growing population should be effectively checked.
34. What is human development index? Who has prepared it? Write about basic
components of human development measurement.
Ans. Human development index is the cumulative measurement of the overall development
of the people of a country. It was prepared by United Nation Development Organization and
it is published by UNDP. The basic components of human development index are as follow:
a. Life expectancy at birth- It denotes average expected length of life of a person at the time
of birth. It is measured in terms of life expectancy in years.
b. Literacy- It is measured by gross enrolment ratio for three levels means enrolment ratio for
primary school, secondary school and higher education beyond secondary school. Per capita
income- It is calculated in dollars for all countries so that it can be compared. It is also done
in a way so that every dollar would buy the same amount of goods and services in any
country.
LONG ANSWER TYPE QUESTIONS
1. What is meant by development? Tell us about the two indicators of development.
Ans. All features related to development may be written here.
1. National Income: The level of national income indicates the level of development of a
country. National income is the value of all the final goods and services produced in a
country during a year and the income coming from abroad.
2. Per Capita income: Per capita income is the indicator of the income of all the citizens of a
country: When national income is divided by total population of the country, we get Per
Capita income.
2. What are the importance of Human development index?
Ans. 1. It indicates the development of a country.
2. It indicates to a country how far it has to yet travel to achieve a higher rank and how far it
as travelled.
3. It indicates the country that in which areas it is poor and in which areas it has improved.
4. Though it, one comes to know the important elements of economic welfare like life
expectancy, level of education attainment and real per capita income.
5. It measures material and non-material components of development.
6. Human Development Index is helpful for a country to plan its future agendas.
3. ‘Money cannot buy all the goods and services that one needs to lie well.’ Explain.
Ans. 1. Money or material things that one can buy with it are one factor on which our life
depends. But the quality of life also depends upon non-material things like equal treatment,
security, freedom, security.
2. Money cannot buy pollution free environment, unadulterated medicines, peace.
3. There are many facilities like schools, colleges, parks, hospitals which people cannot
afford.
4. Money cannot buy love affection respect for us and for others.
5. Money possessed by an individual even cannot provide us a type of government which
takes decisions for the welfare of common people.
4. Distinguish between Human Development and Economic Development.
Ans.
Economic Development
Human Development
1. Human development is related to the development 1. Economic development is related with
of human beings in all aspects. development of only economic aspects.
2. It is a broader aspect of development as it includes 2. It is a narrow concept as it includes
monetary as well as the non-monetary aspects. only the monetary aspect.
3. It concerned with qualitative and quantitative 3. It is concerned with only quantitative
growth. aspects of growth.
4. Human development is the final goal of all the 4. It is a mean to achieve human
development. development.
5. Human Development includes development in the
5. Economic development includes
form of money, education, health. Security, dignity
development in the form of money only.
etc.
5. Define Per Capita income? What are the limitations of the per capita income criteria
of development?
Ans. 1. Per capita income is income of per person. When national income is divided with the
population of the country, we get per capita income.
2. Per capita income criteria take into account only the economic aspect of life and ignore the
social aspect of life.
3. Per Capita income criteria ignore education, heath, life expectancy, sanitation etc.
4. Per capita income criteria also ignore non material things like peace, pollution free
environment, democracy etc.
5. Punjab has higher per capita income as compared to Kerala but it has been ranked lower on
Human Development Index because it is far behind than Kerala in literacy rate and has higher
infant mortality rate than Kerala.
6. What are the development goals of the Following:
i. A maid-servant working in a household.
ii. An untrained worker of a factory
iii. Trader
iv. A girl from a rich urban family
v. A poor person from a tribal village
Ans. i. A maid-servant working in a household: Higher salary, less work and equal treatment
in the household, educational arrangement for her children.
ii. An untrained worker of a factory: Higher income through increased wage rate, benefits of
social security measures, smaller working hours and good working conditions, good and
honourable treatment by the factory owners.
iii. Trader: Available of cheap laborers, no labour strikes, assured supply of raw materials and
electricity on reasonable rates, higher profits.
iv. A girl from a rich urban family: Equal treatment and freedom as her brother, luxurious life
pattern, aspires to go abroad.
v. A poor person from a tribal village: Should be able to get forest produce without
interference, regular job opportunity and income, freedom from exploitation by traders.
7. Define Per Capita income? What are the limitations of the per capita income criteria
of development?
Ans. 1. Per capita income is income of per person. When national income is divided with the
population of the country, we get per capita income.
2. Per capita income criteria take into account only the economic aspect of life and ignore the
social aspect of life.
3. Per Capita income criteria ignore education, health, life expectancy, sanitation etc.
4. Per capita income criteria also ignore non material things like peace, pollution free
environment, democracy etc.
5. Punjab has higher per capita income as compared to Kerala but it has been ranked lower on
Human Development Index because it is far behind than Kerala in liteacy rate and has higher
infant mortality rate than Kerala.
8.What are the efforts and achievements made by the government of India after
independence in the field of health?
Ans. 1. Efforts have been made to overcome the nutritional problems and considerable
progress has been achieved.
2. In the plan –period, the mortality rate declined to nearly 9 per thousand and infant
mortality has come down to 70 per thousand live births.
3. Small pox has been completely eradicated and other disease malaria, leprosy, tuberculosis
etc have been controlled.
4. A number of hospitals have been set up by Government and free ambulance service is
given to people.
5. Special attention is being given to the extension of health facilities in the village. Free
medical facilities are given to poor people.
9. Distinguish between developed countries and developing countries.
Ans.
Developed countries Developing Countries
1. Countries with more per capita income and 1. Countries with low average income and
high average income. less per capita income.
2. The standard of living of the people is very 2. The standard of living of the people is not
high. very high.
3. Good health facilities. 3.lack of basic health facilities
4. The rate of saving, investment, capital 4. The rate of saving, investment, capital
information is also very high. information is also very low.
5. Life expectancy is more. 5. Life expectancy is very low.
6. Example: India, Nepal, Pakistan and
6. Example: Scandinavian Countries, USA.
Bangladesh.
10. The following table shows the proportion of undernourished adults in India. It is
based on a survey of various states in the country for year 2001. Read the table and
answer the following questions:
Male Female
States
% %
Kerala 22 19
Karnataka 36 38
Madhya
43 42
Pradesh
All States 37 36
1. Compare the nutritional value of people of Kerala and Madhya Pradesh?
2. Can you guess why around 40 percent of people in the country are undernourished
even through it is argued that there is enough food in the country? Describe in your
own words?
3. In which state females are among the most undernourished?
4. What is Undernourishment?
Ans. 1. The condition of nutrition value of people of Kerala is in better position as
comparison to Madhya Pradesh.
2. The main reason is that, assess upon the country’s resources is more of rich people as
comparison to the poor. The riches 5% of Indian society consumes 25% resources than
poorest. The lack of education facilities and less awareness is also a main cause of
undernourishment.
3. Madhya Pradesh.
4. If a person is not taking a balanced died and he is taking fewer calories as per the
requirement, it leads to serious health problems and weakness. This is undernourishment.
11. Study the given table carefully and answer the following questions:
HUMAN DEVELOPMENT INDEX OF INDIA AND ITS NEIBOURS-2013
Per Capita Life Literacy rate for 15+ year HDI rank in
Country
income in US$ Expectancy population the world
Sri Lanka 5270 75.1 90.6 92
India 3285 65.7 62.8 136
Myanmar 1817 65.7 92.0 149
Pakistan 2566 65.7 55.5 146
Nepal 1137 69.1 59.1 157
Banglades
1785 69.2 55.9 146
h
1. What are the components of human development?
2. Why is Sri Lanka’s rank higher than India
3. What is the per capita income of India?
4. Which country has the highest per capita income?
5. What is the HDI rank of India in the world?
Ans. 1. Per capita income, longevity and education.
2. Because Sri Lanka leads in all components like the per capita income, education and
longevity.
3. About 32854.SriLanka,i.e.,around32854.SriLanka,i.e.,around 5170
5. 136
