ECONOMICS
Chapter 1: Development
Q1. What is meant by development? Explain with examples.
Answer:
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Development means growth, progress, or improvement in the living standards of people.
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It is not only about income, but also about health, education, equality, and freedom.
Examples:
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A rich farmer may see development in better irrigation facilities.
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A landless labourer may see development in more employment opportunities.
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A girl may see development in better educational opportunities and gender equality.
๐ Thus, development has different meanings for different people.
Q2. What are the common indicators of development?
Answer:
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Income (Per Capita Income):
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Total income of a country ÷ Total population.
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It shows the average income of citizens.
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Infant Mortality Rate (IMR):
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Number of children dying before 1 year of age out of 1000 live births.
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Lower IMR = better health facilities.
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Literacy Rate:
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Percentage of people above 7 years who can read and write.
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Life Expectancy:
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Average number of years a person is expected to live.
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Net Attendance Ratio:
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Percentage of children attending school at different stages.
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๐ These indicators together give a clear picture of development.
Q3. What is Human Development Index (HDI)? Who publishes it?
Answer:
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HDI is a measure of development that compares countries on the basis of:
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Per capita income (economic standard)
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Life expectancy (health standard)
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Literacy rate/education (educational standard)
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Published by United Nations Development Programme (UNDP) every year in its Human Development Report.
๐ HDI is considered better than income alone because it includes both economic and non-economic factors.
Q4. What is sustainable development? Why is it important?
Answer:
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Sustainable development means using natural resources in such a way that they meet the needs of the present without compromising the needs of future generations.
Importance:
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Resources like water, forests, coal, petroleum are limited.
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Overuse leads to environmental problems like pollution, global warming, and shortage of resources.
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Example – if we overuse groundwater today, future generations will face water crisis.
๐ Therefore, development must be sustainable for long-term progress.
Q5. Why is per capita income not the only criterion for development?
Answer:
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Income does not show how resources are distributed. A country may have high per capita income, but most of the wealth may be with a few people.
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It ignores important aspects like health, education, equality, and freedom.
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Example – Sri Lanka has lower per capita income than India, but has better health and education indicators.
๐ Hence, development should be measured by both income and quality of life.
Chapter 2: Sectors of Indian Economy
Q1. Explain the three sectors of Indian economy with examples.
Answer:
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Primary Sector (Agriculture & related activities):
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Includes activities that use natural resources directly.
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Examples: farming, fishing, forestry, mining, animal husbandry.
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Secondary Sector (Manufacturing):
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Uses natural products from primary sector and converts them into goods.
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Examples: sugar from sugarcane, textiles, automobiles, steel, cement.
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Tertiary Sector (Services):
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Provides services, not goods.
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Examples: banking, transport, communication, teaching, medicine, IT services.
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๐ All three sectors are important for economic growth.
Q2. Why is the tertiary sector becoming more important in India?
Answer:
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Development of primary and secondary sectors creates demand for services like transport, storage, trade.
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Rise in income levels increases demand for services like education, health, tourism, shopping.
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Globalisation has led to growth of IT and communication services.
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Government invests heavily in services like education, health, defence, law and order.
๐ Today, tertiary sector contributes more than 50% to India’s GDP.
Q3. What is disguised unemployment? Explain with example.
Answer:
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Disguised unemployment means more people are working in a job than actually required.
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Even if some people are removed, production will not fall.
Example: In a family farm, 8 members may be working, but the work can be done by 4 members. The extra 4 members are disguisedly unemployed.
๐ Common in agriculture and rural areas of India.
Q4. Distinguish between organised and unorganised sectors.
Answer:
| Organised Sector | Unorganised Sector |
|---|---|
| Registered with government | Not registered with government |
| Follows labour laws and rules | No fixed rules and regulations |
| Workers get regular salary, job security | Workers get low wages, no job security |
| Examples: Banks, factories, schools | Examples: Small shops, domestic work, street vendors |
Q5. What are the differences between public sector and private sector?
Answer:
| Public Sector | Private Sector |
|---|---|
| Owned and controlled by government | Owned by private individuals |
| Aim is welfare of people | Aim is profit |
| Examples: Railways, ONGC, BSNL | Examples: TATA, Reliance, Infosys |
Q6. Why do we need the public sector?
Answer:
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To provide basic facilities like education, health, transport at low cost.
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To invest in large projects (railways, dams, steel plants) which require huge money and have long-term benefits.
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To ensure equitable distribution of resources and reduce inequalities.
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To generate employment and protect weaker sections.
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