Indian Economic Development

INDEX
Chapter-1 Indian economy on eve of independence

Chapter-2 Indian economy (1950-1990)
Chapter-3 Liberalization, privatization and globalization: an appraisal
Chapter-4 poverty
Chapter-5 human capital formation
Chapter-6 Rural development
Chapter-7 employment
Chapter-8 infrastructure
Chapter-9 environment and sustainable development
Chapter-10 comparative development of India and its neighbours
Chapter-1 Indian economy on eve of independence

Question 1.
Name the French traveller who visited India during 17th century. How did he, describe India?
Answer:
Bernier was the French traveller who visited India during 17th century. He described India as ‘richer
than Egypt’.
Question 2.
Name the cotton textile which had its origin in Bengal. By which other names is it known?
Answer:
Dacca Muslin is a type of cotton textile which had its origin in Bengal. It is also known as malmal
shahi or malmal khas.
Question 3.
Name some notable economists who estimated India’s Per Capita Income during the colonial period.
(NCERT)
Answer:
Dadabhai Naoroji, William Digby, VKRV Rao and RC Desai.
Question 4.
Why was Indian economy referred to as an agricultural economy on the eve of independence?
Answer:
Indian economy was referred to as an agricultural economy on the eve of Independence because about
70-75% population was dependent on agriculture for their livelihood, either directly or indirectly.
Question 5.
What is the meaning of subsistence farming?
Answer:
It is a form of farming in which the agricultural produce is not sold but is kept for the consumption of
the family and to provide seeds for the next sowing period.
Question 6.
Explain the meaning of ‘commercialisation of agriculture’.
Answer:
Commercialisation of agriculture refers to a shift from cultivation for self-consumption to cultivation
for sale in the market.
Question 7.
Name some modern industries which were in operation in our country at the time of independence.
(NCERT)
Answer:
Cotton textile, jute textile, sugar industries, cement industries and paper industries.
Question 8.
When was India’s first official census operation undertaken? (NCERT)
Answer:
In 1881, India’s first official census operation was undertaken.
Question 9.
What does occupational structure shows?
Answer:
Occupational structure shows the distribution of population across the different sectors viz the
primary, secondary and tertiary sector.
Question 10.
What does demographic condition refers to?
Answer:
Demographic condition refers to various indicators related to the population of the country such as life
expectancy, literacy rate, birth rate etc.
Question 11.
The zamindari system of land settlement was responsible for the stagnation of Indian agriculture.
Explain.
Answer:
The zamindars were recognised as the permanent owners of land and were required to pay a fixed sum
of money to the government on a specified day in lieu of this right. If they defaulted on making
payment, then this right was taken away from them.
Because of this, the zamindars charged huge rent from the tillers and even forced them to pay in case
of crop failures. Inspite of charging a huge rent, they did nothing to improve the condition of
agriculture. Also, after paying huge amount of produce as rent, the farmers were in no position to buy
fertilisers and pesticides to increase the productivity of land. All this led to the stagnation of Indian
agriculture.
Question 12.
Explain the various systems of collecting land revenue prevalent under the British rule.
Answer:
The following two systems of collecting land revenue were prevalent under the British rule
 Ryotwari system It was the way of collecting tax revenue (in British controlled areas in India)
directly from cultivators of farmland.
 Mahalwari system This system consisted of landlords or zamindars representing an entire
village or even group of villages. Alongwith the tillers, they were jointly as well as
individually responsible for the payment of revenues. The land under this system included the
land of the villages as well as adjoining forestland and pastures.
Question 13.
When was the Suez Canal opened? State its effects on the Indian economy.
Answer:
Suez Canal was opened in 1869. Suez Canal is an artificial waterway running from North to South
across the Isthmus of Suez in North-Eastern Egypt. It is one of the most important waterways in the
world. Its opening reduced the cost of transportation and made access to the Indian market easier and
economical. A significant reduction in transport cost prompted monopoly control of India’s foreign
trade by the British Government.
Question 14.
Explain how the construction of railways affected the structure of the Indian economy?
Answer:
Railways affected the structure of the Indian economy in many ways
 It enabled people to undertake long distance travel and thereby break geographical and
cultural barriers.
 It fostered commercialisation on Indian agriculture which adversely affected the self-
sufficiency of the village economies in India.
 It helped to transport food supplies to famine affected areas quickly.
Question 15.
Enumerate the main reasons for slow growth of population during British rule.
Answer:
Following are the main reasons for slow growth of population during British rule
 The death rate was quite high.

 Infant mortality rate was also high.
 Spread of epidemics and famines was quite frequent.
Question 16.
The downfall of the kings of India lead to the downfall of handicraft industries. Do you agree?
Answer:
Yes, I agree. The kings of India were great patrons of the handicraft industry. They extended state
help to expert craftsmen and were also willing to spend huge amounts of money to buy exquisite
pieces of handicrafts. Their downfall robbed the handicraft industry of their great supporters and led
to its downfall.
Question 17.
What do you understand by the drain of Indian wealth during the colonial period? (NCERT)
Answer:
The Britishers exploited India in every possible way. Raw material from India was exported and
expensive finished goods were imported to India. Also, the heavy administrative costs related to
running of the colonial rule in India, in the form of wages and salaries of the administrative staff and
the expenses borne by Britishers in fighting wars, were borne by revenues generated in India. All this
led to drain of India’s wealth.
Question 18.
Which year is regarded as the defining year to mark the demographic transition from its first to the
second decisive stage? (NCERT)
Answer:
The year 1921 is regarded as the defining year or the ‘Year of Great Divide’, because prior to 1921,
population growth in India was stagnant. India was in the first phase of demographic transition till
1921, that was characterised by high birth rate and high death rate. After 1921, India’s population
growth never declined and showed a consistent upward trend.
Question 19.
Indicate the volume and direction of trade at the time of independence. (NCERT)
Answer:
At the time of independence, India was a major exporter of raw material such as raw silk, cotton,
wool, sugar, indigo, jute etc. At that time, India used to import finished consumer goods such as
cotton, silk and light machinery from factories of Britain. More than half of India’s foreign trade was
restricted to Britain while the rest was targeted to countries like China, Ceylon (Sri Lanka), and Persia
(Iran).
Question 20.
Briefly discuss the pattern of industrial development on the eve of independence.
Answer:
The industrial development pattern on the eve of independence was characterised by the following
elements
 The public sector enterprises such as railways, power, post and telegraph were confined to
areas which would enlarge the size of market for British products in India.
 The industrial growth was lopsided, in the sense that consumer goods industry was not
adequately supported by the capital goods industry.
 No priority was given for the development of basic and heavy industries. Tata Iron and Steel
Corporation (TISCO) established in 1907, was the only basic industry in India.
 The pattern of development in the industrial sector was lopsided and was dominated by the
presence of small industries (31%) and large industries (43%), but very few medium
industries.
Question 21.
Explain the composition of foreign trade at the time of independence.
Answer:
India’s foreign trade under the British rule is described as below
 The British followed a typical colonial pattern of trade in India, where it was made to serve
their interests.
 India exported raw materials to the home country of the British for their expanding industries.
 India was also developed as a market for the finished goods of the British industries.
Thus, India was reduced to being a source of food for the British, a supplier of raw materials for the
British industries and a market for their finished products.
Question 22.
What was the focus of the economic policies pursued by the colonial government in India? What were
the impacts of these policies? (NCERT)
Answer:
The focus of economic policies pursued by the colonial government in India was to make India an
exporter of raw material for feeding the rapidly expanding modern industrial base and to target India
as a market for its finished goods.
The British policies had the following impacts on India
 Agricultural sector had a lot of surplus labour and had extremely low productivity.
 Industrial sector was backward and lacked diversification.
 Poverty and unemployment were high.
 Infrastructural facilities needed upgradation.
 Foreign trade was beneficial for the Britishers.
Question 23.
What was the two-fold motive behind the systematic de-industrialisation affected by the British in
pre-independent India? (NCERT)
Answer:
The following are the two-fold motive behind the systematic de-industrialisation affected by the
British
(i) Making India a supplier of raw materials: The main motive of the British Government was to make
India a mere supplier of cheap raw materials to feed its own rapidly expanding industrial base.
(ii) Making India a market for finished goods: Another important objective of the British Government
in de-industrialising Indian economy was to use India as a large and growing market to sell the
finished goods produced by the British industries, so that their industries never face a demand
shortage and could keep on flourishing.
Question 24.
What objectives did the British intend to achieve through their policies of infrastructure development
in India? (NCERT)
Answer:
Under the British rule, basic infrastructure such as railways, ports, water transport, postage and
telegraph developed, but the objective behind the development of infrastructure was not to provide
basic amenities to the people but to cater to their colonial interests.
The objectives of the Britishers behind the development of infrastructure were
 Roads were developed for the purpose of mobilising armies and transporting raw materials to
the nearest railway station or port.
 Railways was developed to encourage commercialisation of agriculture.
 Postage and telegraph were introduced to enable them to control the large sub-continent.
Question 25.
Explain the important features of international trade during the British rule.
Answer:
The important features of international trade during the British rule are as follows
(i) Exporter of primary products and importer of finished goods Under the colonial rule, India became
an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute etc and an importer
of finished consumer goods like cotton, silk and woollen clothes and capital goods like light
machinery.
(ii) Britain’s monopoly control More than half of India’s foreign trade was restricted to Britain. The
opening of Suez Canal in 1869 further intensified British control over India’s foreign trade.
(iii) Surplus trade but only to benefit Britishers Due to huge exports of primary goods, our balance of
trade showed a surplus. But the surplus so generated was not used as an investment for future growth,
but was spent by the Britishers to fight wars to expand their territory. Accordingly, there was a huge
drain of Indian wealth.
Question 26.
Briefly discuss the condition of agricultural sector at the time of independence.
Answer:
The condition of agricultural sector at the time of independence can be understood with the help of the
following points
 Low level of productivity The productivity levels were very low, at about 660 kg per hectare
for wheat and 665 kg per hectare for rice.
 High degree of vulnerability Agriculture was greatly affected by erratic rainfall.
 Rift and turmoil between owners and tillers The owners charged high rent from the tillers and
demanded rent even when the crops failed. This demotivated the tillers and agricultural
productivity was negatively affected.
 Uneconomic and fragmented landholdings The size of the landholdings was uneconomic and
also the landholdings were scattered. This further affected the productivity of land adversely.
 Problem of unemployment and under employment The agricultural sector was plagued with
the problem of unemployment and under employment.
 Use of primitive techniques of production The farmers used age old primitive techniques of
production, which was a cause of low productivity.
Question 27.
What was the state of infrastructure at the time of independence?
Answer:
The state of infrastructure under the colonial rule can be understood with the help of the following
points
 Roads The roads constructed before Independence, were not fit for modem transport. It was
very difficult to reach rural areas during rainy season.
 Railways British rulers introduced railways in India in 1850 and it began its operation in 1853
between Bombay and Thane. It is considered as one of the important contributions of
Britishers.
 Water and air transport The colonial rulers took measures for the development of water
transport. However, the inland waterways, proved uneconomical as in the case of the coast
canal on the Orissa coast. The colonial government also showed way to the air transport in
1932 by establishing Tata Airlines.
 Communication Modern postal system started in India in 1837. The first telegraphy line was
opened in 1857.
Question 28.
What were the negative effects of the British rule in India?
Answer:
The negative effects of the British rule in India are as follows
(i) Colonial exploitation through trade malpractices The Britishers exploited India by following the
given trade practices
 They collected raw material for British industries from India.

 They sold finished goods of British industries in India. To encourage the above trade, no duty
was charged on imports from Britain and subsidy was given for exporting raw material to
Britain.
(ii) Use of British capital to exploit country’s resources The Britishers used their capital and
entrepreneurial skills to exploit India’s natural resources and cheap labour resources. The Britishers
invested in mining and plantation industries and paid very low wages to the workers inspite of unsafe
working conditions.
(iii) Development of industries which complemented the British industries The Britishers invested
only in those industries which complemented the growth of their industries back home. So, they
invested in developing railways, post and telegraphs, rubber, tea and coffee plantations, etc. They
totally neglected the development of key and basic industries like iron and steel, machine making
industries etc. Jute and cotton textile industries, were also discouraged as they could have been a
threat for the textile factories of Britain.
(iv) Economic drain The Britishers drained the country economically. They took away various
wealthy possessions that India possessed, e.g. the famous Kohinoor diamond. According to an
estimate, approximately a trillion dollars were looted by the Britishers, in addition to the gems and
jewels.
(v) Partition of the country This was the most diastatic consequence of the British rule in India; the
effects of which we still face in the form of cross-border terrorism. The Britishers fuelled the Hindu-
Muslim dispute for their own benefit, which led to the partition of the country.
Question 29.
‘The railways affected the structure of the Indian economy positively, as well as negatively.’ Do you
agree?
Answer:
Yes, I agree. The railways affected the structure of the Indian economy positively in the following
ways
 It enabled people to undertake long distance travel and thereby break geographical and
cultural barriers.
 It fostered commercialisation of Indian agriculture as agricultural produce could be sent to
distant places. Farmers started viewing agriculture as a business rather than a way of
subsistence.
 Railways enabled the government to supply foodgrains fastly to famine affected areas.
The railways affected the Indian economy negatively in the following ways:
 It enabled the goods from British factories to be transported to various parts of the country,
thereby expanding their market.
 It facilitated the transport of raw materials to the port cities and ensured their easy
exportability.
 Commercialisation of agriculture affected the self-sufficiency of the rural areas.
Question 30.
Why did the Britishers developed the railways in India?
Answer:
Railways was developed by the British East India Company and then by the colonial British
Government to achieve the following objectives
(i) To promote the commercial interest of Britishers Industrialisation in Britain compelled the
Britishers to look out for new markets for their finished goods and also identify the countries from
where an interrupted supply of raw material could be ensured for their factories. To achieve these twin
objectives, the Britishers introduced the railways in the country. Railways connected the raw material
producing areas to the port cities and also ensured that the goods imported from Britain were
transported to every nook and comer of the country for sale.
(ii) For military motives The Britishers established railways because they felt that it would help in
faster movement of troops and supplies at the time of internal revolution or for defence against
external aggression.
(iii) Capital investment Railways was quite successful in Britain and was earning substantial profits.
Because of this, the British capitalists wanted to establish railways in India also, so that they would be
able to earn profits on their investment.
(iv) Political interest The Britishers believed that the introduction of railways in India would provide
political stability to the country.
Question 31.
What were the main causes of India’s agricultural stagnation during the colonial period? (NCERT)
Answer:
The main causes of India’s agricultural stagnation during the colonial period were:
(i) Land revenue system under the British rule The Britishers in India established the zamindari
system. Under this system, the zamindars were the permanent owners of the land. For their ownership
rights, they were required to pay a fixed sum to the government as land revenue and they were given
full freedom to charge any revenue they wanted from the tillers. The zamindars had lavish and
extravagant lifestyles and they mercilessly exploited the poor tillers and did nothing for their
upliftment.
(ii) Lacking of resources Because the tillers had to pay huge amount of rent, referred to as ‘Lagaan’,
they were not left with any surplus to be able to provide for resources needed in agriculture in the
form of fertilisers or providing for irrigation facilities. This further lowered the agricultural
productivity.
(iii) Commercialisation of agriculture Instead of producing food crops, fanners were producing cash
crops, which were ultimately used by British industries. This further compounded the plight of the
tillers. While earlier they were growing crops to meet their family needs, now they had to purchase
from the market. This led to an increase in indebtedness and they were constantly borrowing from
moneylenders and landlords at very high rate of interests. Production of indigo is a good example of
the same.
Question 32.
The traditional handicrafts industries were ruined under the British rule. Do you agree with this view?
Give reasons in support of your answer. (NCERT)
Answer:
The traditional handicrafts industries in India enjoyed worldwide reputation, but the British misrule in
India led to the decline of Indian handicraft industry. The Britishers adopted the following policies to
systematically destroy the handicraft industry
(i) Discriminatory tariff policy of the state: The Britishers followed a discriminatory tariff policy by
allowing tariff free exports of raw material from India (to provide for the requirements of their
industries in Britain) and tariff free import of British industrial products (to promote British goods in
India), but placed a heavy duty on the export of handicraft products. So, Indian handicraft products
started loosing their foreign as well as domestic markets.
(ii) Competition with machine-made products: Machine-made products from Britain were cheap and
better in quality than the handicraft products. This competition forced many handicraftsmen to shut
down their business.
(iii) Introduction of railways in India: The Britishers introduced railways in India to expand the
market of its low-priced industrial products. Consequently, the demand of high-priced handicraft
products started to fall, thus leading to the downfall of handicraft industry.
(iv) Disappearance of princely courts Prior to the British rule, Rajas, Nawabs and Shehenshahs ruled
the different parts of our country and they were great patrons of the handicrafts. But, as the British Raj
spread its tentacles, these princely courts declined and so did their patronage. This ultimately led to
the decline of the handicrafts.
(v) New patterns of demand As the British rule progressed in India, a new class emerged, which was
keen to follow the British lifestyle. This changed the pattern of demand in favour of the British goods.
Question 33.
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial
administration. (NCERT)
Answer:
The industrial policy pursued by the Britishers under the colonial administration aimed at promoting
the modem industries in britain.
This was achieved through-
(i) Decay of handicraft industry: The traditional and important handicraft industry of India, in the
absence of any patronage and incentive, started to decline. The decline of handicraft industry not only
created massive unemployment but also resulted in a spur of demand in the Indian consumer market
which was now deprived of supply of locally made goods. This demand was met through goods
produced in British industries.
(ii) Limited growth of public sector enterprises Only those public sector enterprises which sub-served
the interests of the Britishers were developed such as railways, postage and telegraph etc.
(iii) Absence of capital goods industries The consumer goods industries were not supported by the
capital goods industry. There was also a dearth of basic and heavy industries.
(iv) Bleak growth of modern industry Because no initiative was taken by the British Government to
industrialise the Indian economy, therefore modem industries registered a negligible growth rate. A
few enterprising entrepreneurs opened iron and steel industry, sugar, cement and paper mills.
Question 34.
Highlight the salient features of India’s pre-independence occupational structure. (NCERT)
Answer:
The following are the salient features of India’s pre-independence occupational structure:
(i) Pre-dominance of agriculture Under the colonial mle, India was basically an agrarian economy,
with nearly 70-75% of its workforce engaged directly or indirectly in agriculture. Due to massive
poverty and widespread illiteracy during the colonial rule, a large proportion of the population was
engaged in farming and related activities to earn their living.
(ii) Lack of opportunities in industry Only a small proportion of population was employed in
manufacturing sector. Only 10% of the total workforce was engaged in manufacturing and industrial
sector.
(iii) Unequal distribution among sectors There was unequal distribution of occupational structure
amongst the primary (agriculture), secondary (manufacturing) and tertiary (service) sectors.
(iv) Regional imbalance There was regional variation in the occupational structure of India. On the
one hand, the Madras Presidency, Bombay and Bengal experienced a fall in the agricultural workforce
and increase in occupational share of manufacturing and services. But on the other hand Orissa,
Rajasthan and Punjab registered an increase in the dependence of the workforce on agriculture sector.
Question 35.
Were there any positive contributions made by the British in India? Discuss. (NCERT)
Answer:
Although, the motive behind the British rule in India was colonial exploitation, but the means resulted
in some positive side effects which are as under:
(i) Political and economic unification of India Prior to the British rule, the Indian sub-continent was
divided into small and fragmented territories mled by different dynasties. The British Government
took over the control of these territories and unified the country politically and economically.
(ii) Development of means of transport Although, the Britishers developed various means of transport,
such as roads and railways for their personal benefit, yet these opened up new opportunities of growth
and helped in the cultural unification of the country. The developed means of transport also helped to
prevent the spread of famines.
(iii) Growth of monetary system The colonial rule helped the country to shift from the barter system
of exchange to a monetary system. This monetised system helped the country to benefit from large
scale production.
(iv) Spreading education, The Britishers opened a number of schools in India and introduced English
as the official language. Education helped the Indians to identify their basic right of freedom and fight
for it. Also, the knowledge of English made them aware of the world and expanded their horizon.
(v) Eradicating social evils, The Britishers enacted several laws to ban social evils like sati system,
child marriage etc. They also encouraged widow remarriage.
(vi) Efficient system of administration The Britishers left behind an efficient system of administration.
They also made exhaustive records of every plan, policy, agreement etc. This system of
administration and record-keeping helped the independent Indian administration to efficiently manage
the country.
Multiple Choice Questions
Question 1.
Which of the following are ‘land tenure systems’?
(a) Zamindari system
(b) Mahalwari system
(c) Ryotwari system
(d) All of the above
Answer:
Question 2.
What is ‘per capita income’?
(a) Gross income
(b) Net income
(c) Average income
(d) None of the above
Answer:
(c) Average income
Question 3.
Which of the following parameters indicated India’s derived healthcare status during colonial period?
(a) Low life expectancy rate
(b) High infant mortality rate
(c) Low level of literacy
(d) Both (a) and (b)
Answer:
Question 4.
Britishers followed ‘discriminatory tariff policy’, what were the main objectives of the same?
(a) To have administrative control over India
(b) To establish monopoly over foreign trade
(c) To make India industrialised
Answer:
(b) To establish monopoly over foreign trade
Question 5.
What was the overall literacy rate during the British period?
(a) 10%
(b) 12%
(c) 14%
(d) 16%
Answer:
(d) 16%
Question 6.
Occupational structure of India was biased towards
(a) agriculture
(b) industry
(c) foreign trade
Answer:
(a) agriculture
Question 7.
Which type of industries were lacking during the British rule?
(a) Handicraft
(b) Capital goods
(c) Consumer goods
Answer:
(b) Capital goods
Question 8.
During British rule productivity of agriculture was low due to
(a) low level of technology
(b) lack of irrigation
(c) low uses of fertilisers
Answer:
Question 9.
Some states witnessed decline in dependence of workforce on the agricultural sector during the
British period, which were the states?
(a) Tamil Nadu
(b) Maharashtra
(c) West Bengal
Answer:
Question 10.
British government used Indian foreign exchange surplus in which of the following ways?
(a) Pay for war expenses
(b) Pay for the deficit of British Government
(c) Payment of salaries
Answer:
Question 11.
Introduction of railways by Britisher served the following purposes?
(a) It broke the geographical and cultural barriers
(b) Enhanced commercialisation of agriculture
(c) Enhanced economic condition of some sections of society
Answer:
Question 12.
Which of the following year is referred to as ‘year of great divide’?
(a) 1881
(b) 1891
(c) 1921
(d) 1947
Answer:
(c) 1921
Question 13.
Opening of Suez Canal served as a direct route between which of the following countries?
(a) India and China
(b) India and America
(c) India and Sri Lanka
Answer:
Question 14.
In general, there are three phases in a demographic profile of a country. Which of the following
signifies second stage of the profile?
(a) High birth rate
(b) Low death rate
(c) High death rate
Answer:
Question 15.
Colonial government systematically industrialised Indian handicraft. What were the outcome of the
same?
(a) Increase in unemployment
(b) Increase in demand for British goods
(c) Increases in demand for imports
Answer:
Chapter-2 Indian economy 1950-1990
Question 1.
Explain the meaning of economic planning.
Answer:
According to the Planning Commission, “Economic planning means utilisation of country’s resources
in different development activities in accordance with national priorities.”
Question 2.
State the central objectives of Indian planning.
Answer:
Growth with stability and social justice were the central objectives of Indian planning.
Question 3.
Why was the objective of ‘modernisation’ of immense importance for India?
Answer:
This objective was important because at the time of independence, the Indian economy was plagued
with superstitions and gender inequality.
Question 4.
Has India achieved the targeted growth rate of industrial production during the various plans?
Answer:
India has managed to achieve the targeted growth rate of industrial production only during the First
Five Year Plan. In all the other plans, the actual growth rate was nowhere near the targeted growth
rate.
Question 5.
Define a plan, NCERT
Answer:
Plan is a document showing detailed scheme, programme and strategy, worked out in advance for
achieving an objective. It is a specific action which aims to help the organisation or a country in
achieving its objectives.
Question 6.
What is a perspective plan?
Answer:
Plan documents which specifies the objectives to be achieved in 20 years is referred to a perspective
plan.
Question 7.
Is agriculture in India, still dependent on rainfall?
Answer:
Yes, agriculture in India is still dependent on rainfall due to lack of irrigation facilities.
Question 8.
How do the PSUs facilitate the development of backward regions?
Answer:
PSUs are generally opened in backward areas so that more employment opportunities are generated in
these areas and it is also able to progress economically.
Question 9.
What is a small-scale industry?
Answer:
A small scale industry is presently defined as one whose investment in fixed assets does not exceed ₹
5 crore.
Question 10.
What is meant by foreign trade?
Answer:
Foreign trade refers to the exchange of goods and services among different countries.
Question 11.
India a leading exporter of handicrafts. Why?
Answer:
Handicraft is a traditional industry of India and skilled workers are easily available here. That’s why
India is a leading exporter of handicrafts.
Question 12.
What are High Yielding Variety (HYV) seeds? (NCERT)
Answer:
HYV seeds are better quality seeds which have a low maturity period, are highly productive and are
disease resistant. The yield from these seeds exceeded 25 to 100 % as compared to yields from normal
seeds.
Question 13.
What is marketable surplus? (NCERT)
Answer:
Marketable surplus refers to the difference between the total output produced by a farmer and his self-
consumption from that output. In other words, it is that portion of the total produce that the farmer
sells in the market.
Question 14.
Give any one advantage and one disadvantage of a socialist economy.
Answer:
Advantage of socialist economy It promotes equitable distribution of income.
Disadvantage of socialist economy It suffers from the drawbacks of a bureaucratic set up in the form
of red-tapism and corruption.
Question 15.
Why should plans have goals? (NCERT)
Answer:
Every plan should have specified goals which it seeks to pursue. Goals are the ultimate targets; the
achievement of which ensures the success of plans.
A plan specifies the means and ways to allocate scarce resources in an optimum manner to achieve
these desired goals. Without specific goals, a plan would be directionless and resources would not be
utilised in a proper manner without wastage. Therefore, every plan should have specific goals which it
strives to achieve.
Question 16.
Why was it necessary for a developing country like India to follow self-reliance as a planning
objective? (NCERT)
Answer:
Self-reliance as an objective of economic planning is necessary for a developing country in order to
reduce its dependence on foreign countries especially for food. Promoting self-reliance increases
employment generation in an economy. Also, it is understandable that people who were recently freed
from foreign dominion should give importance to self-reliance.
Question 17.
Why did the percentage share of agricultural sector in the exports of the country declined in the period
1950-1990?
Answer:
The share of agricultural sector has fallen because of the reasons enumerated below
 During this period, there was substantial growth in Indian industrial sector. With growth in
industrial sector, the domestic demand of agricultural products increased as they were being
used as raw material in the factories.
 During this period, there was a tremendous increase in the population of the country.
As population grew, the domestic demand for agricultural products also grew.
Question 18.
The benefits of green revolution was restricted to few states and few crops in initial stages of
planning. Why?
Answer:
The green revolution was based on the use of High Yielding Varieties (HYVs) of seeds, which
required reliable irrigation and financial resources to buy better inputs. Because of this, the green
revolution was restricted to the more affluent states of Punjab, Andhra Pradesh and Tamil Nadu.
Further the use of HYV seeds primarily benefitted the rice and wheat growing regions. Thus, the
benefit of the green revolution was initially restricted to few states and the crops of wheat and rice
only.
Question 19.
Give the differences between private sector and public sector with an example of each sector.
Answer:
Differences between private sector and public sector
Basis Private sector Public sector

Concept Private sector is that Public sector is that part of the economy in which state acts as an entrepreneur.
Example Reliance Industries Mahanagar Telephone IMigam Limited (MTNL)
Question 20.
Why and how was private sector regulated under the IPR, 1956? (NCERT)
Answer:
Under IPR, 1956, the private sector was kept under state control through a system of licenses. No,
new industry was allowed unless a license was obtained from the government. Even an existing
industry had to obtain a license for expanding output or for diversifying production. The objective
behind regulating the private sector through licenses was to promote equitable development in the
country. It was easier to obtain a license if the industrial unit was to be established in backward areas.
Question 21.
The Industrial Policy Resolution, 1956 categorised industries on the basis of ownership. State those
categories.
Answer:
According to the Industrial Policy Resolution, 1956, industries were classified into three categories on
the basis of ownership
 The first category consisted of industries which could be established and developed
exclusively as public sector enterprises.
 The second category consisted of industries which could be established both as public sector
enterprises and private sector enterprises, with private sector being given a secondary role.
 The third category consisted of all industries other than those specified in the above
categories and was open for private sector.
Question 22.
State three characteristics of SSIs.
Answer:
The three typical characteristics of SSIs are
 Labour intensive SSIs are labour intensive in character, i.e. they require more units of labour
and are best suited for solving the problem of unemployment.
 Less capital-intensive SSIs are less capital intensive, i.e. they require relatively smaller
amount of capital to produce a commodity. In a country like India where capital is scarce, SSI
is best suited to bring about industrial development.
 SSIs show locational flexibility SSIs can be established in remote areas also, because their
need for various resources is limited. Therefore, they contribute to growth across different
regions of the country.
Question 23.
What were the objectives of IPR-1956?
Answer:
The objectives of IPR-1956 were as follows
 To provide a leading role to public sector.

 To promote regional equality.
 To promote social welfare at the cost of private profits.
Question 24.
Why do countries take part in foreign trade?
Answer:
According to classical economists, countries participate in foreign trade because they cannot produce
all the goods and services competitively. A country’s resources are suitable only for the production of
certain specific goods and services. Therefore, the country should produce only those goods for which
its resources are suitable, thus giving it a cost advantage and import other goods from foreign
countries.
Question 25.
Give two advantages and disadvantages of mixed economic system.
Answer:
The advantages of mixed economic system are
 Mixed economy gives adequate scope to private individuals to co-exist and contribute
towards economic development.
 In this, planned economic development ensures stability and balanced development.
The disadvantages of mixed economic system are
 Mixed economy cannot effectively control the private sector industries which are outside the
government purview.
 It is characterised by red-tapism and high degree of corruption.
Question 26.
Differentiate between planning objectives and plan objectives on any four basis.
Answer:
Differences between planning objectives and plan objectives
Basis Planning objectives Plan objectives

They are long-term objectives to be achieved They are objectives to be achieved in short
Aim
over a long period. period say 1 to 5 years.
Nature They are common to all plans. They vary from plan to plan.
Changes They aim at structural changes. They aim at quantitative changes.
They are broad goals, which development
Plans They are planned with greater precision.
plans seek to achieve.
Question 27.
Industries help to strengthen the economy of a country. How?
Answer:
Industries help to strengthen the economy of a country in the following ways
 Industries help in the establishment of the infrastructure of the country such as dams, railways
etc. Infrastructural development helps in the growth of other sectors also.
 Industries help in increasing agricultural productivity by supplying the agricultural sector with
mechanised means of production such as tractors, threshers etc and also with fertilisers,
insecticides etc.
 Expansion of capital goods industries pave the way for industrial growth and as a result, the
economy is able to undertake large scale production of goods at low cost.
 Industrialisation helps a country to become self-reliant in the production of defence goods.
Question 28.
Do you think that ‘Industrial licensing and industrial sops were used to promote regional equality’?
Answer:
The licensing policy was introduced in the IPR of 1956 to promote regional equality. As per this
policy, private entrepreneurs were allowed to establish a new industry or to expand the productive
capacity of the existing units only after obtaining license from the government. Strict rules and
regulations were required to be followed before a license was provided. However, if the new unit was
proposed to be established in a backward region, then the license was provided on simpler terms.
This promoted industrialists to establish new units in backward regions, thereby ensuring all round
development of the country. Also, to further motivate the industrialists to establish new units in
industrially backward areas, various sops (benefits) were also offered to them in terms of provision of
cheap land, tax holiday, subsidised rates of electricity etc.
Question 29.
Give the advantages of international trade.
Answer:
The main advantages of international or foreign trade are
 International trade encourages specialisation on the basis of comparative advantage. This

enables a country to obtain foreign goods at a cheaper rate in context of the domestic
resources used.
 An increase in export trade widens the country’s total market. Production of more goods will
further lower the cost of production, leading to lower cost per unit.
 It widens the scope of industrialisation.
 It encourages competition, leads to innovation and increases capital flows.
 International trade acts as an ‘engine of growth’. It transmits growth from one part of the
world to another. So, the demand in Britain for raw material brought prosperity to Australia,
Canada, New Zealand etc.
 It helps the country to earn valuable foreign exchange.
Question 30.
Discuss the issues that the Five-Year Plans were unable to address.
Answer:
The Five-Year Plans have not been able to address the following issues
 Poverty The FYPs have failed to address the problem of poverty in our country. 21.9% of our
population lives below poverty line and around 50% of the poor people of the world reside in
India. The basic needs of food, shelter and clothing are not being fulfilled.
 Inflation The FYPs have also failed to check the problem of inflation in the country. The
continuously rising prices have eroded the purchasing power of money and increased the
inequalities of wealth.
 Unemployment At the end of the Eleventh Plan, nearly 4 crore people were unemployed in
the country. The employment opportunities are not growing at the same rate in which the
supply of labour is rising.
 Inadequate infrastructure India has inadequate infrastructure. There is an acute shortage of
public means of transport. Roads are in a pitiful condition; the cities are filthy and educational
and medical facilities are highly inadequate.
 Rising inequalities, The FYPs have failed to promote equitable distribution of income. The
rich people are getting richer and the poor people are getting poorer. The plans have in fact
encouraged unequitable distribution of income.
Question 31.
‘Mixed economy is the basic framework of planning in India’. Discuss.
Answer:
Mixed economy is an economic system in which economic decisions are taken by the Central
Government authority, as well as, are left to free play of the market. It is the basic framework of
planning in India. In this economy, the market will provide whatever goods and services it can
produce economically and the government will provide essential goods and services which the market
fails to provide.
The following features of Indian economy prove that mixed economy is the basic framework of
planning in India
 In India, agriculture and most of the industrial and service sectors are in the private hands.
 Market forces of demand and supply have free role in determining prices in various markets,
i.e. goods having higher demand will be highly priced and vice-versa.
 Over the period of time, many big business houses have come into being and have been
growing, such as Reliance, Infosys, Bajaj etc.
 After independence, the government recognised the need to provide infrastructure for the
growth of the private sector. So, public sector was developed on a large scale.
Question 32.
Explain ‘growth with equity’ as a planning objective. (NCERT)
Answer:
Both growth and equity are the two important objectives of Indian planning. While growth refers to
the increase in national income over a long period of time, equity refers to an equitable distribution of
this income so that the benefits of higher economic growth can be passed on to all sections of
population to bring about social justice.
Growth is desirable but growth in itself does not guarantee the welfare of society. Growth is assessed
by the market value of goods and services produced in the economy and it does not guarantee an
equitable distribution of income. In other words, the major share of Gross Domestic Product (GDP)
might be owned by a small proportion of population, which may result in exploitation of weaker
sections of society.
Hence, growth with equity is a rational and desirable objective of planning. This objective ensures
that the benefits of high growth are shared by all the people equally and hence, inequality of income is
reduced along with growth in income.
Question 33.
Agriculture sector is deemed to be the backbone of Indian economy. Why?
Answer:
The importance of agriculture in the Indian economy is evident by the following points
 Contribution to Gross Domestic Product (GDP) Agriculture contributes about 14% to India’s
GDP. This share was as high as 51% in 1950-51, but has been gradually declining with the
progress and development of the country.
 Supply of wage goods Wage goods such as wheat, rice, maize, pulses, oil, sugarcane etc are
the necessities of life. Agricultural sector in India provides wage goods to 121 crore people
and 38 crore animals.
 Employment In India, agriculture is the principal source of employment. Over 50% of
working population is either directly or indirectly dependent on agriculture for means of their
livelihood.
 Supplier of raw material for industries Agriculture provides cotton for the textile industries,
sugarcane for sugar industry, various seeds for oil industry and jute for gunnysack industry.
The growth of the secondary sector is dependent on the primary sector.
 Contribution to international trade Agriculture is the major contributor to external trade. India
exports tea, jute, cashew nuts, tobacco, coffee, spices etc on a large scale.
 Instrumental in the growth of transport industry Both railways and roadways are the bulk
carriers of agricultural products in India. Thus, agricultural sector is a major consumer of the
transport services of our country.
 Contribution to wealth of nation In terms of fixed assets, land occupies the highest rank in
India. In addition to it, a large amount is invested in irrigation projects. Thus, agricultural
sector owns a large chunk of nation’s wealth.
So, we can conclude that agriculture is not only an important component of the primary sector, but it
also helps to sustain and develop both secondary as well as tertiary sector. Thus, it is the backbone of
economy.
Question 34.
Discuss the various technical reforms which were initiated by the government to improve the
technology in Indian agriculture.
Answer:
The following steps have been taken by the government to upgrade the state of technology in Indian
agriculture:
(i) Promoting the use of High Yielding Variety (HYV) seeds: The government is promoting the use of
HYV seeds in place of conventional seeds. This has resulted in the increase in crop productivity
leading to green revolution.
(ii) Use of chemical fertilisers: Use of chemical fertilisers is being promoted by the government and
the fanners are encouraged to use them in the course of farming to increase productivity. Use of
organic manure is also encouraged.
(iii) Use of insecticides and pesticides for crop protection: Government is advocating the use of
insecticides and pesticides judiciously for protecting the crops from diseases and insects. 14 central
plant protection centres have been set up. An integrated pest management programme has been
initiated to fight the problem of pests attacking the standing crops.
(iv) Scientific farm management practices: Scientific methods of farming related to selection of crops,
preparation of soil, crop rotation, use of fertilisers and pesticides, dry farming practices, multi-
cropping system etc are encouraged.
(v) Mechanised means of cultivation: Government is taking steps to popularise the use of agricultural
machines like tractors, harvesters and threshers. Cheap credit is also provided to farmers through
cooperative societies, regional rural banks and commercial banks, to help them to buy farm
equipment’s.
Question 35.
Briefly discuss the importance of industrial sector in the economy of a country.
Answer:
Following points highlight the importance of industry in an economy
(i) Structural transformation: Industrial development brings about structural transformation in the
economy. It means that dependence of our economy on agriculture will be reduced.
(ii) Source of employment Indian economy has a very large skilled workforce which is still
unemployed. It is the establishment of industries only, which can generate employment opportunities
on a large scale.
(iii) Enhancing further the economic growth As industrialisation progresses, the capital goods industry
also starts to flourish. This helps in further economic growth and also helps an economy to attain self-
sustaining development.
(iv) Infrastructural growth with the spread of industrialisation, the need for economic infrastructure
such as roads, dams, banking, insurance and communication facilities also rises and this leads to their
growth. Also, with the improvement in quality of life, the demand for social infrastructure, i.e.
facilities related to health and education, also rise and leads to their development.
(v) Share in GDP Industries contribute towards the GDP of the country. During the years, the share of
the industrial sector has increased from 16.6% in 1950-51 to about 30% in 2011-12 (at constant
prices).
(vi) Strengthening the economy Industries help to strengthen the economy in following ways:
 With the growth of capital goods industry, the country is able to produce a number of goods
in large quantities and at low cost.
 It helps in the establishment of infrastructure goods like dams, railways, etc, which cannot be
imported.
 Industrialisation has helped our country to become self-reliant in defence goods.
Question 36.
Discuss the role of SSIs in the economy of our country.
Answer:
SSIs play an important role in the economy of our country, as explained below
 Generate employment opportunities SSIs are labour intensive, therefore, they have generated
huge employment opportunities in the country.
 Favourable employment capital ratio The SSIs have a favourable employment capital ratio.
According to all India Census of small scale industries, an investment of ₹ 10 lakh generated
employment for 14 persons in small scale sector and for only 2 persons in large scale sector.
 Self-employment SSIs are a suitable source of self-employment for millions of unemployed
in the country.
 Less capital is required SSIs are generally less capital intensive, implying that these can be
established with a limited amount of capital.
 Promotes export SSIs produce goods which are in great demand in the foreign countries, thus
contributing towards the export of the country.
 Promotes the handicraft industry The traditional village and cottage industries are clubbed
with modem small scale industries, thereby providing the artisans and handicraftsmen with a
means of living and also preserving and promoting the handicraft industry of our country.
 Fulfilling the needs of medium and large industries SSIs work as ancillary units to fulfil the
requirements of medium and large industrial units for materials, components, consumables
etc.
 Investment output ratio at par with large industries the investment output ratio of SSIs is
almost at par with the large-scale units. It is estimated that a small-scale unit needs ₹ 48,000
to produce ₹ 1 lakh worth of output, while large scale units need only ₹ 43,000 to produce the
same output.
Question 37.
Discuss the progress made in international trade after independence.
Answer:
Following points show the progress of India’s foreign trade
(i) Volume of foreign trade India’s foreign trade witnessed tremendous increase during the planning
period.
(ii) Composition of foreign trade:
The following points bring about the changes in the composition of foreign trade
 The share of agricultural sector has fallen.

 Share of conventional items of India’s exports such as jute, tea, foodgrains and minerals has
fallen.
 The percentage share of manufactured goods in the volume of trade increased due to the
growth in the industrial sector.
(iii) Direction of foreign trade Presently, our major trading partners are UAE, China,
Switzerland, Singapore, Australia, Iran, Hong Kong, Korea, Indonesia, UK, Japan and Belgium. This
is in sharp contrast to the scenario at the time of independence, when our international trade was
confined largely to UK, USA and Commonwealth countries.
Question 38.
Explain the need and type of land reforms implemented in the agricultural sector. (NCERT)
Answer:
At the time of independence, the land tenure system was characterised by intermediaries called
zamindars, jagirdars etc. They collected rent from the actual tiller without contributing towards
improvements on the farm. This demotivated the actual tillers and resulted in low productivity in this
sector. Due to this reason, there was an urgent need for land reform policy.
The agricultural sector in India adopted the following types of land reform strategies:
 Abolition of intermediaries: The zamindari system was abolished and ownership rights were
given to the actual tiller of land.
 Regulation of rent: rent was regulated and a maximum limit of 33% of the value of crop was
fixed.
 Land ceiling: The maximum size of landholding that an agricultural household could own was
fixed. The surplus land was acquired after paying compensation and was re-distributed among
poor farmers.
 Consolidation of landholding: To increase productivity, farmers were given big piece of land
in place of his small and fragmented fields.
 Cooperative farming: Cooperative farming was encouraged to get benefit from the gains of
consolidation of holdings.
Question 39.
What is green revolution? Why was it implemented and how did it benefit the farmers? Explain in
brief. (NCERT)
Answer:
Green revolution refers to substantial increase in production of foodgrains resulting from the use of
High Yielding Varieties (HYVs) of seeds and the increased use of fertilisers, pesticides and irrigation
facilities. It resulted in the increase in crop yield needed to make India self-sufficient in foodgrains.
Green revolution was implemented because of the following reasons:

(i) Food security The colonial rule had made Indian agriculture suffer from low level of productivity,
especially in foodgrains, as more emphasis during colonial rule had been on cash crops which served
as raw material to British industries. This resulted in shortage of foodgrains in India and made green
revolution necessary to ensure food security for the population.
(ii) Low irrigation facility The land area under irrigation cover was only 17% in 1951. The major part
of agriculture was dependent on rainfall from monsoon and in case of scanty rainfall or delayed
monsoon, crops were destroyed. This caused low level of agricultural production and a means was
needed to overcome it.
(iii) Conventional methods The use of conventional inputs and absence of modern techniques led to
low level of agricultural productivity.
Green revolution benefitted the farmers in the following ways:
 Increase in income: green revolution helped the farmers to increase the productivity of their
landholdings. Increased productivity led to an increase in their incomes.
 Reduced vulnerability to natural forces: Before the advent of green revolution, farmers were
very much affected by the fluctuations of the climate. The various techniques of green
revolution reduced their vulnerability to natural forces and helped them to harvest a good crop
even in adverse conditions.
Question 40.
Why was public sector given a leading role in industrial development during the planning period?
(NCERT)
Answer:
At the time of independence, Indian economic conditions were very poor and weak. There was neither
much private capital nor did India have international investment credibility so as to attract foreign
investment. Moreover, Indian planners did not want to be dependent on foreign capital for economic
development. In such a situation, it was only logical that the public sector should take the initiative.
Following are the reasons that explain the driving role of the public sector in the industrial
development
 Lack of capital with the private entrepreneurs: At the time of independence, the requirement
of capital for diversified industrial growth far exceeded its availability with private
entrepreneurs. Accordingly, it became essential for the state to foster industrial growth
through public sector undertakings.
 Lack of incentive among the private entrepreneurs: The private investors lacked the incentive
to invest in large industries. Because of this reason, public sector was forced to invest for the
development of these industries.
 Socialistic pattern of society: The government realised that, a socialist society could be
achieved only through direct participation of the state in the process of industrialisation
because it requires investment that generates employment rather than investment that
maximises profit. Concentration of wealth was to be discouraged and public investment was
considered as the best means to achieve it.
Question 41.
“While subsidies encourage farmers to use new technology, they are a huge burden on government
finances.” Discuss the usefulness of subsidies in the light of this fact. (NCERT)
Answer:
Subsidy in agriculture means providing some important inputs to farmers at a concessional rate, i.e.
much lower than their market rate. During 1960s, in order to ensure Green Revolution, HYV seeds,
fertilisers and insecticides were provided at a subsidised rate to the farmers. The following arguments
are given to prove the usefulness of subsidies
 It is necessary to give subsidies to farmers, especially the small farmers to provide ‘ an

incentive for adoption of the new HY’ technology. Any new technology is considered being
risky by farmers. Subsidies are, therefore, needed to encourage farmers to adopt the new
technology initially.
 Farming in India is still a risky business and subsidies provide protection against the risk of
climatic conditions.
 Most farmers are very poor and they will not be able to afford the required inputs without
subsidies.
 Subsidies bring about equity between rich and poor farmers by enabling the poor farmers to
use modern technology and inputs.
On the other hand, some economists believe that subsidies should be phased out once their purpose
has been served and the technology is now widely adopted due to its profitability. They argue that
there is no case for continuing with subsidies as it does not benefit the target group and it is a huge
burden on the government’s finances. They give the following arguments against subsidies in
agriculture
 Subsidies are benefitting the fertiliser industry more than farmers.

 Subsidies are mainly being availed by big farmers in affluent regions, who do not actually
need them.
Hence, on the basis of above arguments, we can conclude that although subsidies are very useful and
necessary for poor farmers to, overcome uncertainties associated with farming, it may lead to wastage
of resources. Thus, it can put an excessive burden on the scarce government’s finances. Hence,
suitable reforms are needed to be undertaken in order to ensure allocation of subsidies in a targeted
manner only to the needy farmers.
Question 42.
Explain how import substitution can protect domestic industry? (NCERT)
Answer:
In the first seven Five Year Plans, India followed an inward looking trade strategy. This strategy
aimed at replacing or substituting imports with domestic production, i.e. instead of importing goods
made in a foreign country, industries would be encouraged to produce them in India itself. This
concept is referred to as import substitution. Thus, the government protected the domestic industries
from foreign competition through this policy.
Protection from imports took two forms
 Tariffs, i.e. a tax on imported goods to make imported goods more expensive and discourage
their use.
 Quotas specify the quantity of goods which can be imported.
The policy of import substitution provides protection to domestic industries from foreign competition.
The rationale for this policy is that industries of developing countries like India are not in a position to
compete against the goods produced by developed economies. It is assumed that if the domestic
industries are protected in the infant stage, they will gain strength by being able to produce on large
scale and through experience they will be able to compete globally in the course of time.
Question 1.
………… refers to an arrangement by which central problems of an economy are solved.
(a) Economic system
(b) Government policy
(c) Economic policy
Answer:
(a) Economic system
Question 2.
Who among the following was the Chairman of Planning Commission?
(a) Prime Minister of India
(b) President of India
(c) Finance Minister of India
Answer:
(a) Prime Minister of India
Question 3.
India opted for mixed economic system during the planning phase after independence. What is/are the
objective(s) of mixed economic system?
(a) Profit maximisation
(b) Social welfare
(c) Wealth maximisation
Answer:
Question 4.
Capitalist system pursue the policy of profit maximisation, as this system is based on
(a) market mechanism
(b) planning agency
(c) government intervention
Answer:
(a) market mechanism
Question 5.
In which year, high yielding variety seed programme was introduced for the first titoe?
(a) 1956
(b) 1966
(c) 1976
(d) 1986
Answer:
(b) 1966
Question 6.
What is buffer stock?
(a) Stock of foodgrains maintain by farmers
(b) Stock of foodgrains maintain by government
(c) Stock of foodgrains maintain by intermediaries
Answer:
(b) Stock of foodgrains maintain by government
Question 7.
Which of the following are false for the policy of green revolution in India?
(a) In the first phase of green revolution it targeted most backward states of the country
(b) Green revolution helped the poor farmers to improve their economic condition in a greater extent
(c) It was restricted to wheat crop only
Answer:
Question 8.
According to IPR, 1956, industries were reclassified into
(a) 2 Schedules
(b) 3 Schedules
(c) 4 Schedules
(d) None of these
Answer:
(b) 3 Schedules
Question 9.
The Industries Act, 1951, empowered the government to issue licences for
(a) setting up of new industries
(b) expansion of existing ones
(c) diversification of products
Answer:
Question 10.
Which of the following industries were exclusively reserved for public sector in schedule A of IPR,
1956?
(a) Arms and ammunition
(b) Atomic energy
(c) Air craft
Answer:
Question 11.
Which of the following statements are not true about SSI during industrialisation?
(a) SSI were given protection from big industries
(b) Various concessions were given to SSI
(c) Government allowed SSI and large industries to produce any type of goods
Answer:
(c) Government allowed SSI and large industries to produce any type of goods
Question 12.
Private sector didn’t take interest in direct participation in the industrial development due to which of
following reason(s)?
(a) Limited market size
(b) Lack of demand
(c) Lack of capital
Answer:
Question 13.
Our foreign trade policies during the initial phase of reform were
(a) inward oriented
(b) outward oriented
(c) aggressive
(d) None of these
Answer:
(a) inward oriented
Question 14.
The policy of import substitution was adopted with which of the following objectives?
(a) Saving foreign exchange
(b) Achieving self-reliance
(c) Industrialisation
Answer:
(c) Industrialisation
Question 15.
India becomes food sufficient country due to
(a) land reforms
(b) abolition of zamindari system
(c) green revolution
Answer:
Chapter-3 LPG
Question 1.
State any two reasons why economic reforms were initiated in India.
Answer:
Two reasons responsible for the initiation of economic reforms in India are
 Increase in fiscal deficit

 Unfavourable Balance of Payments
Question 2.
Why does government needs funds?
Answer:
The government needs to generate funds to implement various policies and to meet its general
administration expenses.
Question 3.
Indian Government become unsustainable in 1991. Why?
Answer:
Government expenditure began to exceed its revenue by very large margins. This was the main cause
to make the government unsustainable.
Question 4.
Why was the Indian Government compelled to borrow from international organisations?
Answer:
A severe financial crisis due to unsustainable fiscal deficit, fall in foreign exchange reserves and
liability to pay interest to international lenders forced Indian Government to borrow from international
organisations.
Question 5.
Structural reforms are also referred to as ‘micro economic structural adjustment measures’. Why?
Answer:
Structural reforms are also referred to as ‘micro economic structural adjustment measures’ as they are
targeted at specific sectors of the economy. These measures are related to the changes made in
industrial policy, trade policy, public sector policy, price policy and tariff policy.
Question 6.
What is the meaning of ‘retaining the golden share’?
Answer:
It means to withhold a part of shareholding of the PSU by the government to enable it to enjoy future
profit. Golden share depends on individual cases. Presently it is 26% for PSUs.
Question 7.
State the limit of automatic approval for direct foreign investment.
Answer:
Automatic approval was granted for direct foreign investment upto 51% in a wide range of industries.
Question 8.
Why should government remove tariff and non-tariff barriers to promote globalisation?
Answer:
Tariff and non-tariff barriers restrict the free flow of trade between two countries. Therefore, these
barriers should be removed to promote globalisation.
Question 9.
Which organisation facilitates bilateral and multilateral trade agreements?
Answer:
World Trade Organisation (WTO) facilitates bilateral and multilateral trade agreements.
Question 10.
Name any two services outsourced in India.
Answer:
Voice-based business process and banking services are the two services outsourced in India.
Question 11.
Why are tariffs imposed? (NCERT)
Answer:
Tariffs are taxes imposed on the imports by a country for providing protection to its domestic
industries. Imposition of tariffs increases the price of imported goods in the domestic country. The
rise in price discourages consumption of imported goods by consumers and thus, domestic industries
are able to compete with imports from other countries. Tariffs may also be imposed on those imported
goods which are socially undesirable. For example, in India custom duty is imposed on imports.
Question 12.
State any two objectives behind demonetisation.
Answer:
 It was an attempt to India corruption free.

 It was expected to curb black money.
Question 13.
State any two drawbacks of privatisation.
Answer:
The drawbacks of privatisation are
 Socialist pattern of society is disturbed.

 Privatisation leads to disparity in incomes.
Question 14.
Stabilisation measures are also referred to as ‘macro economic stabilisation measures’. Why?
Answer:
Stabilisation measures are also referred to as ‘macro economic stabilisation measures’, as these
measures affect the economy as a whole. These measures relate to the changes made in the monetary
policy, fiscal policy and exchange rate policy.
Question 15.
Why were reforms introduced in India? (NCERT)
Answer:
Since independence, India followed the mixed economy framework by combining the advantages of
the market economic system with those of the planned economic system. But over the years, this
policy resulted in the establishment of a variety of rules and laws which were aimed at controlling and
regulating the economy. These rules ended up hampering the process of growth and development. The
economy was facing problems of declining foreign exchange, growing imports without matching rise
in exports and high inflation. India changed its economic policies in 1991 due to the financial crisis
and pressure from international organisations like the World Bank and IMF.
Question 16.
Does India has scope in handloom and handicrafts exports? (NCERT)
Answer:
A developing country like India still does not have the access to the markets of developed countries
because of non-traiff barriers. Our country has removed all quota restrictions on textile industry but
developed countries like the USA has not removed quota restriction on imports of textiles from India.
In this situation, I do not think that India has much scope in handloom and handicrafts exports.
Question 17.
What is the meaning of Quantitative Restrictions? (NCERT)
Answer:
Quantitative Restrictions (QRs) are the limits imposed on the quantity of goods that are imported or
exported. It includes import quotas and Voluntary Export Restraints, which are signed by the
exporters of foreign countries. Quantitative restrictions are imposed to discourage imports and thus,
protect domestic industries from competition with cheaper and technologically advanced goods
manufactured by other nations. Quantitative restrictions have been abolished by WTO in a phased
manner to facilitate world trade.
Question 16.
Those Public Sector Undertakings which are making profits should be privatised. Do you agree with
this view? Why? (NCERT)
Answer:
No, I do not agree with this view. Even though disinvestment would increase the revenue of the
government, the profit making industries should be retained in the public sector because the profits of
these undertakings add to the revenues of the government and can be used to develop other PSUs and
the infrastructure of the company. Also, if the assets of the profit-making industries are undervalued,
it will lead to a substantial loss to the government, if sold to the private sector. Also, the government
should retain the strategic profit-making industries to avoid emergence of any monopoly in the private
sector.
Question 17.
Do you think outsourcing is good for India? Why are developed countries opposing it? (NCERT)
Answer:
Outsourcing is good for India since it has generated new employment opportunities in the Indian
economy, contributed to GDP and has increased the foreign reserves of the country. The developed
countries are opposing outsourcing services to India because it results in loss of employment
opportunities in these countries.
Question 18.
Do you think the Navratna policy of the government helps in improving the performance of public
sector undertakings in India? How? NCERT
Answer:
The government identifies PSUs and declares them as Maharatnas, Navratnas and Miniratnas in order
to improve their efficiency and enable them to compete globally. They are given greater managerial
and operational autonomy in taking various decisions. In 2011, about 90 public enterprises were
designated with different status. The granting of this special status resulted in better performance of
these companies.
Question 19.
What are the advantages of privatisation to the economy?
Answer:
Advantages of privatisation are
 It will introduce efficiency and profitability in Public Sector Undertakings (PSUs).

 It promotes consumer’s sovereignty. High degree of consumer’s sovereignty implies wider
choice and better quality of goods and services.
 It will reduce budgetary deficits which result from expenditure on loss making PSUs.
Question 20.
Give your views on the reforms introduced in the financial sector under the New Economic Policy.
Answer:
Financial sector includes financial institutions such as commercial banks, investment banks, stock
exchange and foreign exchange market.
The following reforms were initiated in this sector:
 The banking sector was opened for the private sector. This led to an increase in competition
and expansion for services for consumers.
 RBI’s role underwent a change from a ‘regulator’ to a ‘facilitator’.
 These reforms were much needed and subsequent to these changes, this sector has witnessed
tremendous growth and helped in the development of the economy as a whole.
Question 21.
Discuss briefly the meaning of economic reforms. Explain the main economic reforms.
Answer:
Economic reforms refer to the changes made in the economy with a view to deregulate it and to solve
the prevailing economic problems of the country.
In India, economic reforms were introduced in 1991, with the implementation of New Economic
Policy. These reforms can be categorised as
 Stabilisation reforms These reforms were short-term measures which intended to correct
disequilibrium in BoP and to check inflation.
 Structural reforms These are long-term measures which intend to bring efficiency in the
working of the economy. These reforms can be categorised as liberalisation, privatisation and
globalisation.
Question 22.
What are the main objectives of liberalisation policy?
Answer:
The main objectives of liberalisation policy are
 To increase competition among domestic industries.

 To increase foreign capital formation and ‘ improve the technology.
 To decrease the debt of the country.
 To encourage cross-border trade.
 To expand the size of the market.
Since, the NEP aims to achieve all the above stated objectives, therefore it is said that, NEP is liberal.
Question 23.
Why was trade and investment liberalised in 1991?
Answer:
Liberalisation of trade and investment was initiated to increase international competitiveness of
industrial production and also the flow of foreign investments and technology into the economy. Prior
to these reforms, in : order to protect domestic industries, India was following a regime of quantitative
restrictions on imports and restrictions of foreign investments. The trade policy reforms aimed at:
 dismantling of quantitative restrictions on imports and exports.

 reduction of tariff rates.
 removal of licensing procedures for imports. Liberalisation led to economic growth by
increasing the level of investment in the country.
Question 24.
State the measures that were taken towards privatisation in 1991.
Answer:
The New Economic Policy was introduced with the objective to deregulate the economy and ensure
economic development. So, privatisation was crucial for the success of this policy as it insures high
productivity, a competitive environment which promotes innovation and efficiency, diversification of
activities and consumer sovereignty.
In order to encourage private sector, following measures have been adopted
 The government through its economic policy reduced the number of industries reserved for
public sector from 17 to 3 at present.
 It has now been planned to reduce the share of public sector investment to 45%. It increases
the share of private sector to 55%.
 Financial corporations cannot force the industries for conversion of their loans into equity
shares.
 It has now been decided to increase the participation of general public and workers by selling
them the shares of public enterprises.
Question 25.
State the main objectives of privatisation.
Answer:
The most common and important objectives of privatisation are
 Improving the financial condition of the government.

 Raising funds through disinvestment.
 Reducing the workload of public sector.
 Increasing the efficiency of the government undertakings.
 Providing better goods and services to consumers.
 Bringing healthy competition within an economy.
 Making way for Foreign Direct Investment (FDI).
Question 26.
Write a short note on foreign exchange reforms.
Answer:
The first important reform in the external sector was made in the foreign exchange market.
In 1991, as an immediate measure to resolve the Balance of Payments (BoP) crisis, the rupee was
devalued against foreign currencies.
This led to an increase in the inflow of foreign exchange. After liberalisation policy of 1991
 approval was given for direct foreign investment upto 51% foreign equity in high priority
industries.
 automatic permission was given for foreign technology agreements in high priority industries
upto a lumpsum payment of ₹ 1 crore.
Question 27.
What do you understand by devaluation of rupee? (NCERT)
Answer:
Devaluation of rupee means a deliberate downward adjustment in the official exchange rate of rupee
relative to other currencies. For example, if the dollar-rupee exchange rate which was $ 1 = ₹ 50, is
changed to $ 1 = ₹ 60, under fixed exchange rate system by the government, then in such an instance,
rupee is said to be devalued.
There were two important implications of devaluation of rupee in 1991. First, devaluation made
India’s exports relatively less expensive for foreigners and increased their competitiveness and
second, it made foreign products relatively more expensive for domestic consumers, discouraging
imports.
Question 28.
Industrial sector has performed poorly in the reform period. Why?
Answer:
The industrial sector has performed poorly in the reform period because of reasons enumerated below:
 Cheaper imports have decreased the demand for domestic industrial goods.
 Globalisation created conditions for the free movement of goods and services from foreign
countries that adversely affected the local industries and employment opportunities in
developing countries.
 There was inadequate investment in infrastructural facilities such as power ,supply.
Question 29.
Discuss economic reforms in India in the light of social justice and welfare. NCERT
Answer:
The economic reforms initiated through NEP had benefitted the country in many ways. They helped
the country to become a vibrant economy, have stimulated industrial production, helped to check
fiscal deficit and inflation. They also led to a substantial increase of foreign exchange reserves and
foreign investment. However, these reforms have led to an increase in the income of those who were
already rich. Quality of consumption of only high income groups has increased and economic growth
has not trickled down to the poorer sections of the society.
Growth has been concentrated only in some selected areas in the service sector such as
telecommunication, information technology, finance, entertainment, travel, hospitality services, real
estate and trade. Vital sectors, such as agriculture and industry, which provided livelihood to millions
of people in the country have not been benefitted much from reforms thereby increasing income
disparities. Besides, large scale production has been promoted under reforms at the cost of small scale
industries, again leading to concentration of economic power with large industrial houses and MNCs.
So, we can conclude that economic reforms in India have not promoted social justice and welfare.
Question 30.
Critically discuss the fiscal reforms initiated under NEP of 1991.
Answer:
Fiscal reforms are concerned with the reforms initiated in government’s taxation and public
expenditure policies.
The following reforms were introduced in this category
 The fiscal reforms simplified the tax structure and lowered the rates of taxation. The
maximum rate of income tax was brought down to 30% from 51%.
 The rates of various indirect taxes, such as custom duty, excise duty etc were reduced
considerably.
 The government decided to reduce subsidies so that it can control expenditure.
 Conscious efforts were made by the government to control its expenditure so that a mounting
deficit could be controlled.
These measures helped to reduce tax evasion and increased government’s revenues. By controlling its
expenditure and by increasing revenues, the government succeeded to a certain extent in controlling
the budget deficit.
Question 31.
Briefly discuss the measures that have been taken for globalisation of Indian economy.
Answer:
The following measures have been taken for globalisation of Indian economy
 Increase in equity limit of foreign investment Equity limit in general, has been raised from
40% to 51%. Also, in 47 high priority industries and in export trading houses, Foreign Direct
Investment (FDI) is allowed upto the extent of 100%.
 Partial convertibility It means sale and purchase of foreign currency at a price determined by
the market forces of demand and supply. It is called partial convertibility because it is allowed
100% in current account transactions but it is only 51% for capital account transactions.
 Liberal foreign trade policy A long-term liberal trade policy has been implemented which
encourages free trade among countries.
 Reduction in tariffs Custom duties have been reduced drastically. Pre 1991, custom duties
were as high as 400%, but post 1991, maximum rate of duty is just 10%.
 Withdrawal of quantitative restrictions The quantitative restrictions on all import items have
been totally withdrawn from 2001, in conformity with the guidelines issued by World Trade
Organisation (WTO).
Question 32.
Write a brief note on International Monetary Fund and state its objectives.
Answer:
IMF was conceived at the Bretton WoodsConference held in 1944 and set-up in 1946. The main
objective of setting up of such an organisation was to administer a code of good conduct in
international liquidity of its member countries and to grant short-term loans to economies,
experiencing temporary deficit in Balance of Payments (BoP). IMF started to function from March
1947.
Its headquarters is located in Washington DC. There are 189 member countries including India. The
highest authority of the IMF is the Board of Governors, which consists of the most part of Ministers
of Finance or Central Bank Governors of the member countries. Each member country appoints one
Governor. The board generally meets only once in a year. The main objectives of IMF are as follows
 To promote international monetary cooperation.

 To promote exchange stability.
 To assist in the establishment of a multilateral system of payments in respect of current
transactions between members and in the elimination of foreign exchange restrictions.
 To give confidence to members by making the general resources of the fund temporarily
available to them under adequate safeguards.
Question 33.
Write a brief note on International Bank for Reconstruction and Development (IBRD).
Answer:
It is popularly known as World Bank which was also set-up in 1944 under Bretton Woods
Conference, alongwith IMF, hence these two are known as sister institutions or Bretton Woods’ twins.
World Bank is also headquartered at Washington DC and has 189 members.
The World Bank focuses on making loans to government in order to rebuild railroads, highways and
other infrastructure, i.e. the areas where private sector enterprises do not take interest.
The main objectives of IBRD are as follows:
 To help reconstruction of member countries after the Second World War.

 To facilitate the investment of foreign capital for productive purpose.
 To maintain balance growth of international trade and to attain equilibrium in BoP account.
 Motivating governments to act on preventing climate change, controlling communicable
diseases, managing international financial crises and promoting free trade.
Question 34.
Why is it necessary to become a member of WTO? (NCERT)
Answer:
It is necessary to become a member of WTO because of the following reasons:
 Rule based trading WTO is formed to establish a rule based trading system in which arbitrary
restrictions cannot be placed on trade by different nations. This helps in making the trade
environment more stable.
 Equality of opportunities Under WTO, the member countries confer the status of Most
Favoured Nation (MFN) to all other member countries. Thus, WTO provides equal
opportunities to all countries in the international market for trading purposes.
 Multilateral negotiations The WTO agreements cover trade in goods as well as services to
facilitate international trade through multilateral trade negotiations leading fo removal of
tariff as well as non-tariff barriers. This helps in providing greater market access to all
member countries.
Question 35.
Why did KBI have to change its role from controller to facilitator of financial sector in India?
(NCERT)
Answer:
RBI used to control and regulate all the banks and other financial institutions in India prior to 1991.
The RBI used to decide the amount of money that the banks can lend and the amount they should
keep as reserves, determine the interest rates and prioritises lending to various sectors apart from
regulating foreign exchange. However, all this changed with the declaration of the New Industrial
Policy (NEP). One of the major aims of financial sector reforms was to transform the role of RBI
from regulator to facilitator of financial sector.
This means that greater autonomy may be granted to the financial sector in taking decisions on
various matters without consulting the RBI. The reform policies led to establishment of private sector
banks. Banks have been given freedom to set up new branches and determine the rate of interest to be
offered on various deposits. Banks have been given permission to generate resources from India and
abroad through capital market. All this has led to a substantial growth in the financial sector.
Question 36.
How is RBI controlling the commercial banks? (NCERT)
Answer:
RBI controls the commercial banks through the following measures
(i) RBI fixes the bank rate and repo rate: Bank rate is the interest rate at which the RBI lend funds to
other commercial banks in the country. It is also called the discount rate. In order to control the supply
of currency in the economic system RBI often uses the bank rate. On the other hand, repo rate is the
rate at which commercial banks will borrow the funds from the RBI against the securities. In order to
make credit dearer, RBI increases these rates.
(ii) Variable reserve ratios: The commercial banks have to keep a certain proportion of their total
assets in the form of liquid assets so that they are always in a position to honour the demand for
withdrawal by their customers. Generally, the following two reserves are required to be kept
 Cash Reserve Ratio (CRR) It refers to the percentage of deposits of the commercial banks
which they have to maintain with the RBI in cash form.
 Statutory Liquidity Ratio (SLR) It refers to the percentage of deposits to be maintained as
reserves in the form of gold.or foreign securities by commercial banks. By varying reserve
ratios lending capacity of commercial banks can be affected.
(iii) Fixing margin requirements The margin refers to the “proportion of the loan amount which is not
financed by the bank”. By increasing or decreasing margin requirements the RBI tries to control the
lending capacity of banks.
(iv) Credit rationing RBI can fix the upper iimit of credit amount to be granted for various purposes.
This can help in lowering the credit exposure of commercial banks to undesirable sectors.
Question 37.
Distinguish between the following
(i) Strategic and minority sale
(ii) Bilateral and multi-lateral trade
(iii) Tariff and non-tariff barriers (NCERT)
Answer:
(i) Differences between strategic and minority sale
Basis Strategic sale Minority sale

Strategic sale involves the sale of minimum 51%
Minority sale involves the sale of less than 49%
Meaning stake of a Public Sector Unit (PSU) to the private
stake of a PSU to the private sector.
sector.
The control and management of PSU remains
The control and management of PSU is transferred
Control with the government as it holds the majority
to the private sector.
stake.
It is done through a process of competitive bidding Minority disinvestments are made via public
Process
and subsequent sales to the partner. offers.
(ii) Differences between bilateral and multi-lateral trade
Basis Bilateral trade Multi-lateral trade

It is a trade agreement among more
Meaning It is a trade agreement between two countries.
countries.
Separate negotiations are required to be done with different Negotiations are done with many c
Negotiations
countries on one to one basis. together, which saves time.
Economic Encourages globalisation, integratin
Encourages economic cooperation between two countries.
Cooperation countries of the world.
(iii) Differences between tariff and non-tariff barriers
Basis Tariff barriers Non-tariff barriers

It refers to the taxes imposed on the imports by a It refers to the restrictions other than taxes,
Meaning country for providing protection to its domestic imposed on imports by a country for providing
industries. protection to its domestic industries.
Tariff barriers are allowed by the World Trade Non-tariff barriers like import quotas and
Purpose Organisation (WTO) to be imposed by its member voluntary export restraints are now abolished
countries, though at reasonable rates. under WTO regime.
Nature Tariff barriers are more explicit. Non-tariff barriers are not explicit.
Question 38.
India has certain advantages which makes it a favourite outsourcing destination. What are these
advantages? (NCERT)
Answer:
Most multinational corporations and even small companies are outsourcing their services to India
because of the following advantages
1. Availability of cheap labour India is a country with a large population and thus, abundant
supply of labour. Due to this reason, labour in India is available at low wage rates. This helps
foreign companies in reducing cost of operation by outsourcing their business processes to
India.
2. Skill and accuracy India has a wide pool of talent in the form of educated and trained youth
who have the required skill and can work with accuracy in the business processes such as
accounting, record keeping, IT consultancy etc.
3. Continuity and risk management Periods of high employee turnover add uncertainty to the
operations of a company. Outsourcing will provide a level of continuity to the company while
reducing the risk that a substandard level of operation would bring to the company.
4. Reduced overhead Overhead costs of performing back office functions are extremely high but
due to the outsourcing these costs can be reduced.
Question 39.
What are the major factors responsible for the high growth of the service sector? (NCERT)
Answer:
The major contribution to GDP in India comes from the service sector which has grown impressively
since liberalisation. The major factors responsible for the high growth of the service sector are as
follows:
 High income elasticity of demand It has been noticed that income elasticity of demand for
services is more than one. Hence, the demand for services increases at a faster rate than
demand for commodities, with the increase in income.
 Technical and structural changes The technical and structural changes in the economy, have
made it an attractive destination for outsourcing, contributing towards the growth of service
sector.
 Information technology revolution With the advent of the information technology revolution,
it has become possible to deliver services over long distance at a reasonable cost. Thus,
trading in services has increased worldwide, also benefitting India.
 Economic reforms in 1991 Economic reforms initiated in 1991, increased demand for
manufacturing industry, thereby benefitting the service sector also. Liberalisation of financial
sector boosted the growth of financial services. Reforms in certain segments of infrastructure
also contributed to the growth of services.
Question 40.
Briefly discuss the benefits of globalisation.
Answer:
Globalisation results in the following benefits for the economy
 It helps the economy to adopt new and flexible methods of production.

 It results in raising the productivity of the industrial sector by reducing capital output ratio,
increasing exports, raising the efficiency of the workforce, modernising the technology used
and increasing capital flow in the country.
 It helps in restructuring the production units of the country towards the production of those
goods which the country can produce effectively and efficiently with the use of the
domestically available factors of production.
 It helps to increase the flow of foreign capital into the country.
 It helps to improve the quality of goods produced in the economy.
 It helps to address the problem of unemployment.
Question 41.
Agricultural sector appears to be adversely affected by the reform process. Why? (NCERT)
Answer:
Due to following reasons, agricultural sector appears to be adversely affected by the reform process
 Public investment in agricultural sector especially in infrastructure which includes irrigation,

power, roads, market linkages and research and extension has been reduced in the reform
period.
 The removal of fertiliser subsidy has led to increase in the cost of production, which has
severely affected the small and marginal farmers.
 Various changes in policies like reduction in import duties on agricultural products, removal
of Minimum Support Price (MSP) and lifting of quantitative restrictions on agricultural
products have increased the threat of international competition to the Indian farmers.
 Export-oriented policy strategies in agriculture have marked a shift from production for the
domestic market towards production for the export market focusing on cash crops in lieu of
production of foodgrains.
Question 1.
The new economic policy can be broadly classified as
(a) stabilisation measures
(b) structural reform measures
(c) standardised measures
Answer:
Question 2.
India experience BoP crisis during 1950-1990 due to which of the following reasons?
(a) High imports
(b) Low exports
(c) Focus on agriculture
Answer:
Question 3.
Which of the following international organisation did India approach for loan to revive its economic
crisis?
(a) IMF
(b) IBRD
(c) WTO
Answer:
Question 4.
Which of the following reforms are included in liberalisation policy?
(a) Industrial sector reforms
(b) Financial sector reforms
(c) Tax reforms
Answer:
Question 5.
Tax reforms was one of the important reforms under liberalisation policy.
Which of the following are not a tax reforms?
(a) Reduction in the rate of tax
(b) Reforms in indirect taxes
(c) Simplified tax payment process
(d) Devaluation of rupee
Answer:
(d) Devaluation of rupee
Question 6.
Under foreign exchange reforms India rupee was devalued with the objective of
(a) increase price of exports
(b) increase price of imports
(c) decrease price of exports
(d) Both (b) and (c)
Answer:
Question 7.
In financial sector reforms, foreign investment limit in banking institution was raised to
(a) 24%
(b) 51%
(c) 74%
(d) 80%
Answer:
(b) 51%
Question 8.
Liberalisation means removal of entry and growth restrictions on the private sector, it was
implemented with the objective(s) of
1. Deregulation and reduction of government role
2. Business is given in free hand and allowed to run on commerical lines
3. Unlock economic potential Choose from the options below
(a) Both 1 and 2
(b) Both 2 and 3
(c) Both 1 and 3
Answer:
Question 9.
Which of the following is a ‘Navaratna company’?
(a) SAIL
(b) MTNL
(c) OBC
(d) None of these
Answer:
(a) SAIL
Question 10.
Navaratna policy of the government was adopted as an attempt to
(a) give managerial autonomy
(b) improve efficiency of PSU
(c) privatisation
Answer:
Question 11.
The main purposes for which government opt for privatisation are
(a) to improve financial discipline
(b) to facilitates modernisation
(c) to reduce financial burden
Answer:
Question 12.
Which of the following can be regarded as disinvestment policy?
(a) Selling 24% of equity holding
(b) Selling 15% of equity holding
(c) Selling 51% of equity holding
Answer:
Question 13.
At global level, India is considered as a favourite outsourcing destination because of
(a) labour skill
(b) growth in the IT industries
(c) government policy
Answer:
Question 14.
WTO works facilitating which of the following?
(a) Bilateral trade
(b) Multi-lateral trade
(c) Tariffs
Answer:
Question 15.
Liberalisation, privatisation and globalisation are the aims of
(a) economic planning
(b) land reforms
(c) economic reforms
Answer:
(c) economic reforms
Chapter-5 human capital formation

Question 1.
What is the main objective of human capital formation?
Answer:
The main objective of human capital formation is to make human beings more productive.
Question 2.
According to you, why do people migrate?
Answer:
People migrate in search of better employment opportunities that fetch them higher earnings.
Question 3.
Name the two categories of health expenditures.
Answer:
Two categories of health expenditures are
 Preventive medicine (vaccination)

 Social medicine (spread of health literacy)
Question 4.
What is meant by human capital?
Answer:
Human capital refers to the stock of skill, ability, expertise, education and knowledge in a nation at a
point of time.
Question 5.
Explain the meaning of physical capital?
Answer:
All inputs which are required in the production process such as machine, tools and implements etc are
called physical capital.
Question 6.
Name the two ways of ‘On-the-job’ training.
Answer:
Two ways of ‘On-the-job’ training are
 Internal training
 External training
Question 7.
What is the meaning of human capital formation? Explain with the help of an example.
Answer:
Human capital formation is a process which converts human resources into human capital. It is the
process of acquiring and increasing the number of people who have the skills, education and
experience which is necessary for the economic development of the country.
For example, if in the year 2014, the number of doctors and engineers in our country were 4,50,000
and in the year 2015, their number grew to 5,00,000, then it can be said that there is human capital
formation to the extent of 50,000 doctors and engineers.
Question 8.
Why on-the-job training is given to workers?
Answer:
Firms give on-the-job training to their workers to enhance their productive skills so as to enable them
to absorb new technologies and modern ideas.
It can be given in two forms
 Training given within the office premises.

 Training given outside the office premises.
Question 9.
What factors contribute to human capital formation? (NCERT)
Answer:
The factors which contribute to human capital formation are as follows
 Expenditure on education
 On-the-job training
 Migration
 Expenditure on health
 Expenditure on information
Question 10.
Establish the need for acquiring information relating to health and education expenditure for the
effective utilisation of human resources, (NCERT)
Answer:
People need to have information on the cost and benefit of investment in health and education. When
they know the benefits of their investment in these two areas, they are willing to make more
expenditure. This results in more human capital formation.
Question 11.
Discuss briefly how health and expenditure on information are a source of human capital formation.
Answer:
Health as a source of human capital has formation Health is an important source of human capital
formation because only a healthy worker can contribute towards increasing the capital stock of the
country. A sick worker, without access to medical facilities is compelled to abstain from work and
there is loss of productivity.
Expenditure on information as a source of human capital formation People spend to acquire

information relating to the labour market, education and health institutions etc.
Information relating to job opportunities and educational institutes enables people to increase their
earning potential. Therefore, it is also a determinant of human capital formation.
Question 12.
What are the two major sources of human capital in a country?
Answer:
The two major sources of human capital in a country are
 Education
 Health
Education and health are considered as important inputs for the development of a nation. A better
educated person has greater skills and knowledge and therefore greater opportunity to work and earn
higher income. Similarly, a healthy person is an asset for the nation as he is more productive than a
sick person. Hence, expenditure on education and health are important sources of human capital
formation.
Question 13.
Bring out the need for on-the-job training for a person, (NCERT)
Answer:
Firms provide on-the-job training to their workers to enhance their skills which helps in human capital
formation. On-the-job training is an important factor of human capital formation as it results in
enhanced labour productivity. On-the-job training allows trainees and employees to get acquainted
with their co-workers.
Training allows the supervisors or managers to assess progress of a person over a short period of time
enabling them to determine any flaws or problems and rectifying the problem on the spot. This leads
to higher efficiency of not only the person under training but also the organisation as a whole.
Question 14.
Distinguish between physical capital and human capital.
Answer:
Differences between physical and human capital:
Basis Physical Capital Human Capital

it is tangible and can be easily sold in the It is intangible; built in the body and mind of its owner.
Nature
market like any other commodity. It is not sold in the market, only its services are sold.
Ownership Its separable from its owner. It is inseparable from its owner.
It is completely mobile between countries It is not perfectly mobile between countries as
Mobility
except some artificial trade restrictions. movement is restricted by nationality and culture.
Formation It can be built even through imports. It is to be done through conscious policy formulations.
Benefit It creates only private benefit. It creates private and social benefits.
It is subject to depreciation, which is It is also subject to depreciation, but it could be avoided
Depreciation
unavoidable. by expenditure on education and health.
Question 15.
Discuss the following as a source of human capital formation. (NCERT)
(i) Health infrastructure
(ii) Expenditure on migration
Answer:
(i) Health infrastructure It means investment in health facilities to build a physically as well as
mentally strong human capital. It is essential for increasing productivity. Preventive medicine
(vaccination), curative medicine (medical intervention during illness), social medicine (spread of
health literacy) and provision of clean drinking water and good sanitation are the various forms of
expenditures done on health infrastructure.
These expenditures are considered as important factors for human capital formation as they increase
the supply of healthy labour force.
Therefore, health infrastructure is a source of human capital formation.
(ii) Expenditure on migration People migrate in search of jobs with higher salaries than what they
may get in their native places. People from rural areas migrate to urban areas in search of
employment. Technically qualified persons, like engineers and doctors, migrate to other countries
because of higher earnings in such countries.
Migration in both these cases involves cost of transport, higher cost of living in the migrated places
and psychological costs of adapting to a new socio-cultural setup. The increase in earnings in the new
place outweighs these expenditures of migration. Hence, expenditure on migration is a source of
human capital formation.
Question 16.
Human capital formation improves quality of life. How?
Answer:
Human capital formation helps an individual to earn more, thereby improving his quality of life.
Question 17.
State any one problem of human capital in India.
Answer:
High poverty levels
Question 18.
What is the meaning of ‘brain drain’?
Answer:
Brain drain is the large scale migration of a large group of individuals with technical skills or
knowledge to a foreign country.
Question 19.
What is the meaning of economic growth?
Answer:
Economic growth means increase in the real national income of a country.
Question 20.
Why is it difficult to establish a cause and effect relationship between rate of growth in human capital
formation and economic growth rate?
Answer:
Because of measurement problems it is difficult to establish cause and effect relationship between rate
of growth in human capital formation and economic growth rate.
Question 21.
Discuss why human resource is considered to be the main economic factor.
Answer:
Of all the factors of production, viz. land, labour, capital and organisation; labour or human resource
is the most important economic factor because it is the only factor which is active.
All the other factors are inactive. In the absence of human resource, production in an economy will
come to a stand still. Therefore, it is correctly said that human resource is the main economic factor.
Question 22.
Do you think that ‘India is going to be a knowledge based economy in the near future’?
Answer:
India is soon emerging as a knowledge bank. The Indian software industry has been showing an
impressive growth over the past decade. The use of e-mail, e-governance and development of
information technology shows that India is slowly transforming itself into a knowledge based
economy.
Question 23.
How is human development a broader term as compared to human capital? (NCERT)
Answer:
Human capital considers education and health as a means to increase labour productivity. Human
development is based on the idea that education and health are integral to human well-being because
only when people have the ability to read and write and the ability to lead a long and healthy life, they
will be able to make other choices they value.
In human capital view, any investment in education and health is unproductive, if it does not enhailce
output of goods and services. In the human development perspective, human beings are ends in
themselves. So, human capital is a part of human development.
Question 24.
Explain how investment in education stimulates economic growth. (NCERT)
Answer:
Investment in education stimulates economic growth in the following ways
 It helps to develop responsible citizens.

 It helps in the development of science and technology.
 It helps in the optimum utilisation of natural, physical and financial resources of a country.
 It expands the mental powers of an individual.
 It helps in economic development due to greater productivity and also helps to increase the
standard of living.
 It helps in changing social perceptions.
 It also helps to control the birth rate.
Question 25.
What are the differences between human capital and human development?
Answers:
Difference between human capital and human development:
Basis Human Capital Human Development

Concept It is a narrow concept. It is a broader concept.
It considers that education and health are integral to human
Means of It considers education and health as a because only when people have the ability to read and write
productivity means to increase labour productivity. to lead a long and healthy life, they will be able to make oth
they value.
Human capital treats human beings as a
According to the concept of human development, human b
Link means to an end, the end being the
end in themselves.
increase in productivity.
In human development, human welfare should be increased
In human capital, investment in education
investments in education and health even if such investmen
Welfare and health is unproductive if it does not
in higher labour productivity. Thus, every individual has a
enhance output of goods and services.
healthy and literate.
Question 26.
How does investment in human capital contribute to growth? (NCERT)
Answer:
Investment in human capital is believed to be positively related to economic growth. The contribution
of human capital formation to economic growth can be explained as follows
 Increase in labour productivity Investment in human capital through expenditure on

education, health etc enhances the productivity of labour as they become physically fit and
skilled in their jobs. It leads to efficient utilisation of the material inputs and capital. With
increase in productivity, output increases at an increasing rate and hence economic growth
accelerates.
 Innovations Human capital formation helps in preparing learned scientists and researchers in
various subjects who bring out innovative products, technologies and processes and thus add
to the economic growth.
 Capacity to adopt Advanced technology can be adopted only if the skills and knowledge
required for using that technology are present in the country.
Investment in education and on-the-job training helps to create these skills and enhances the
knowledge base and thus helps in absorption of new technologies which leads to higher production
and thus economic growth. Thus, it is evident that human capital contributes to economic growth in
various ways.
Question 27.
Trace the relationship between human capital and economic growth. (NCERT)
Answer:
Human capital is believed to be positively related to economic growth though, it is difficult to
establish a relation of cause and effect from the growth of human capital to economic growth.
But we can see that human capital formation is related to economic growth in the following manner
 Higher productivity of physical capital Human capital increases productivity of physical

capital as specialised and skilled workers can handle machines or techniques better than the
unskilled workers. This increased productivity and production leads to economic growth.
 Innovative skills Human capital facilitates innovation of new methods and techniques of
production and this increases the rate of economic growth in the form of increase in GDP.
 Higher rate of participation and equality Human capital formation leads to a higher
employment rate. With increase in employment, the productivity rises. Also, increase in
employment opportunities increases the level of income and this helps in reducing
inequalities of wealth.
 Brings positive outlook The process of human capital formation brings a positive outlook to
the society which is different from orthodox and traditional ways of thinking, hence it
increases the rate of participation in the workforce leading to an increase in the level of
production and GDP.
Question 28.
What are the main problems of human capital formation in India? (NCERT)
Answer:
The main problems of human capital formation in India are as follows
(i) Rising population Rapidly rising population adversely affects the quality of human capital in under
developed and developing countries like India.
It reduces per head availability of existing facilities like sanitation, employment, drainage, water
system, housing, hospitals, education, food supply, nutrition, roads, electricity etc.
(ii) Brain drain Migration of highly skilled labour to foreign countries is termed as ‘brain drain’. This
slows down the process of human capital formation in the domestic economy.
(iii) Inefficient of manpower planning There is inefficient manpower planning in less developed
countries where no efforts have been made either to raise the standard of education at different stages
or to maintain the demand and supply of technical labour force. It is a sad reflection on the wastage of
human power and human skill.
(iv) Long-term process The process of human development is a long-term policy because skill
formation takes time. The process which produces skilled manpower is thus, slow. This also lowers
our competitiveness in the international market of human capital.
(v) High poverty levels A large proportion of the population lives below poverty line and do not have
access to basic health and educational facilities. A large section of society cannot afford to get higher
education or expensive medical treatment for major diseases.
Question 29.
How is literacy different from education?
Answer:
Education is a much wider concept than literacy. Literacy refers to the ability to read and write.
Education includes three parameters, viz. primary education, secondary education and higher
education.
Question 30.
Why has government imposed educational cess on all union taxes?
Answer:
The Government of India levied a 2% education cess on all union taxes so that the revenue generated
by the government from this provision can be spent on financing elementary education.
Question 31.
India has not been able to achieve 100% literacy rates. Why?
Answer:
India has not been able to achieve 100% literacy because the government’s expenditure on education
was inadequate.
Question 32.
What are the indicators of educational achievements in a country? (NCERT)
Answer:
The indicators of educational achievements in a country are
 Adult literacy level

 Primary education completion rate
 Youth literacy rate
Question 33.
The per capita education expenditure is only ₹ 3,600 in Bihar. What do you infer from this?
Answer:
Such a low per capita education expenditure conveys that the Bihar Government is not dedicated to
the cause of education in their state. Due to this literacy levels are low in Bihar.
Question 34.
Give the full form of NSSO.
Answer:
National Sample Survey Organisation
Question 35.
Discuss the role of education in human capital formation.
Answer:
Education is very essential for human capital formation. It is the most effective way of enhancing and
enlarging the productive workforce of the country. The benefits of education far exceed the cost of
education and the difference between the two is the value of human capital formation.
Question 36.
How is the government expenditure on education expressed? According to you, which is a better
measure?
Answer:
Government expenditure on education can be expressed in two ways
 Asa percentage of total government expenditure.

 As a percentage of Gross Domestic Product (GDP).
The measure as a percentage of GDP is a better measure since, it sets fixed targets rather than the
variable government expenditure.
Question 37.
Explain the meaning of vocationalisation of education.
Answer:
To relate education with work, the government now lays stress to provide vocational education, at
‘plus 2’ level, specially to children in rural areas and to girl child. Practical knowledge of a specific
work is given to children, so that they possess necessary skills needed and are able to find
employment.
Question 38.
Write a brief note on National Literacy Mission.
Answer:
In 1988, National Literacy Mission (NLM) was initiated to promote adult education. A women
education council was also established to promote women education in our country. The NLM has
been recast as ‘Saakshar Bharat’ with a central focus on female education. The programme covers all
citizens in the age group of 15 years and above.
Question 39.
Why do we observe regional differences in educational attainment in India? NCERT
Answer:
The per capita education expenditure differs considerably across states from as high ₹ 17,000 in
Himachal Pradesh to as low as ₹ 3,600 in Bihar in 2011-12. This leads to regional differences in
educational attainment. The states in which per capita education expenditure is more have high
literacy rates as compared to those states with less per capita education expenditure.
Question 40.
Keeping in view the present scenario, what should be the objectives of education in India?
Answer:
In view of the present scenario, the following should be the objectives of education in India
 The first and foremost objective should be that of ensuring hundred per cent literacy in the
country, as even after nearly 70 years of independence, around 26% of the population is
illiterate.
 Vocationalisation of education should be encouraged.
 Higher education should be brought within the reach of all.
 Adult and female education should be encouraged.
Question 41.
Do you consider that Indian education system is faulty from the employment angle?
Answer:
Yes, I agree with this statement. Indian education system is largely irrelevant to the needs of Indian
economy. There is no linkage between education and employment opportunities.
After completing their school and college education, for a number of years, men and women remain
unemployed because they do not have practical training and useful skills. Most of the students do not
gain any occupational and vocational training. Hence, the Indian education system is considered
faulty from the employment angle.
Question 42.
The current level of education expenditure is inadequate. Do you agree?
Answer:
Yes, the current level of education expenditure is inadequate. It is only 3.25% in comparison to the
desired level of 6% of GDP. More than 50 years ago, the education commission has recommended
that atldast 6% of GDP should be spent on education, so as to make a noticeable rate of growth in
educational achievements.
However, the investment in education expenditure has not been uniform and is marked with regional
and gender inequalities. India has also not been able to achieve the objective of providing free and
compulsory education to all children in the age group of 6 to 14 years.
Question 43.
Discuss the role of education in the economic development of a nation.
Answer:
Following points show that education plays a significant role in economic development
 Education increases the receptivity of people to modern and scientific ideas. Thus, education
increases the efficiency of people.
 It results in greater awareness of available opportunities and mobility of labour.
 It imparts to people knowledge, skills and attitude which would enable them to contribute to
the productive programmes.
 It produces skilled and trained personnel needed by the economy. Education prepares
individuals as human resources.
Question 44.
The Education Commission in 1966, had recommended that atleast 6% of GDP should be spent on
education in India. However, the government continues to spend 3-4% of GDP on education. How has
this affected the education sector in India?
Answer:
Government’s unwillingness to spend 6% of GDP on education has affected this sector adversely, as
is enumerated with the help of given statistics
 In India, about 30.3 crore people are still illiterate.

 The female literacy rate is 65.46%, which is quite low as compared to male literacy rate of
82.14 per cent.
 There is disparity in education levels of urban and rural areas.
Question 45.
How do government organisations facilitate the functioning of schools and hospitals in India?
(NCERT)
Answer:
The following government organisations facilitate the functioning of schools and hospitals in India
 National Council of Educational Research and Training (NCERT) This body is engaged in
developing content and text books upto the level of senior secondary.
 University Grants Commission (UGC) It is the apex body for controlling the working of
various universities in the country. It provides funding to the universities and formulates rules
and regulations regarding higher education in the country.
 All India Council of Technical Education (AICTE) This body formulates and enforces rules
and regulations related to technical (engineering) education in India.
 Indian Council of Medical Research (ICMR) This body formulates and enforces rules and
regulations related to medical education in India. It also regulates the health sector.
Question 46.
Education is considered to be an important input for the development of a nation. How? (NCERT)
Answer:
Education is the process of teaching, training, learning, imparting knowledge and developing skills.
Because of education the citizens become responsible. It facilitates the use of natural and human
resources.
Following points are describing why education is an important input for the development of a nation
 Knowledge and skills A better educated person has greater skills and knowledge which
enhances productivity and therefore provides a greater opportunity to work and earn higher
income.
 Rationality Education develops thinking process in people and helps them in making rational
choices which lead to efficient utilisation of resources resulting in higher productivity.
 Values and ethics Education inculcates moral values and professional ethics in people,
making them law abiding citizens, who contribute towards the well being of the nation.
 Adoption of modem technology Education develops the skills required for understanding and
adopting modern technology. This helps in increasing output and growth of the nation.
 Reduction in income inequality Education enhances the income earning capacity of people
from economically backward sections of the country and thus reduces the inequalities in the
distribution of income.
 Standard of living Education raises the living standard of people by enhancing their earning
capacity.
 Participation rate Education makes a greater proportion of population capable of participating
in the economic, social and political activities of a nation thus raising the participation of
people in the development process.
Question 47.
Discuss the need for promoting women’s education in India. (NCERT)
Answer:
Women have always been neglected when it comes to education in India. The access to education has
always been biased towards male population due to our social system which is patriarchal. The lack of
education has caused exploitation of women and has resulted in a lower social status of women in
India.
There is an imminent need or promoting female education in India, because of the following reasons
 Women education is essential for providing them economic independence and empowering
them to save them from exploitation and domestic violence.
 Women education is essential in order to raise the social status of women, so that the quality
of life of women can be improved.
 Educating woman helps in promoting family welfare programmes and thus, in population
control.
 Educated woman are aware of the importance of healthcare and thus, take proper care of their
family members contributing in human capital formation.
 Educating a woman means educating a family. An educated woman can inculcate moral
values in her children and can facilitate their education.
Question 48.
Argue in favour of the need for different forms of government intervention in education and health
sectors. (NCERT)
Answer:
There is a need for different forms of government intervention in education and health sectors due to
the following reasons
 Private sector is governed by profit motive and hence does not provide education and health
facilities at a reasonable cost which may be affordable to all.
 Standard of education and health needs to be maintained in order to develop human resources
effectively and government intervention is needed for this.
 Education and health is essential for social upliftment of backward and weaker sections of the
society and government intervention in terms of policy and provision of infrastructure is
required in education as well as health sector.
 Regional disparities are prevalent in education and health in India which can be corrected
only through government intervention at all levels as private sector would not be forthcoming
for establishing schools or hospitals in remote or backward areas.
Question 49.
Why does a skilled worker like a software professional generates more income than an unskilled
worker?
Answer:
A skilled worker generates more income than an unskilled worker mainly because the productivity of
an educated and skilled person is higher than an unskilled one. A skilled worker also commands
higher earnings and gainful employment. This is because they cannot be substituted easily because, it
takes years to generate a manpower which is skilled in a particular field. On the other hand, an
unskilled worker like a rickshaw puller can be easily substituted and such workers easily compromise
on lesser earnings.
Question 1.
Which one is not the part of hitman capital?
(a) Doctors
(b) Engineers
(c) Unskilled labour
(d) Chartered Accountants
Answer:
(c) Unskilled labour
Hint:
Human capital includes the people who have the skills, education, expertise and experience, e.g.
Doctors, lawyers, engineers, chartered accountants, skilled labour etc.
Question 2.
…………… is based on the idea that education and health are integral to human well being.
(a) Capital development
(b) Physical education
(c) Human development
(d) Economic development
Answer:
(c) Human development
Hint:
Expenditure on education and health are important sources of human capital formation. An educated
person has greater skills and knowledge and a healthy person is more productive.
Question 3.
Main problems of human capital formation include(s)
(a) rising population
(b) high poverty
(c) brain drain
Answer:
Question 4.
Government’s initiatives to improve education in India include
(a) Provision of cess
(b) Right to Education
(c) Promoting education
Answer:
Hint:
The Government of India has taken many initiatives to improve level of education include, education
cess on all union taxes, free education for children, promotion of primary, secondary and higher
secondary levels of education.
Question 5.
Which of the following is/are the true statement(s)?
(a) Elementary education takes a major share of total education expenditure
(b) Expenditure per student is higher or tertiary education as compared to elementary education
(c) The share of higher education like colleges, polytechnics etc is the least
Answer:
Hint:
In India, government is spending more on elementary education but the share of expenditure is least
on colleges and polytechnics etc. Per student expenditure is higher for higher education.
Question 6.
Under human capital formation, expenditure on health includes expenditure for
(a) preventive medicine
(b) curative medicine
(c) social medicine
Answer:
Question 7.
Under human capital formation, on-the-job training includes
(a) training within the office campus
(b) off-the-job training
(c) training outside the office campus
(d) Both (a) and (c)
Answer:
Question 8.
Which five year plan recognised the importance of human capital in India?
(a) Tenth
(b) Seventh
(c) Sixth
(d) Ninth
Answer:
(b) Seventh
Hint:
Human capital/resource development was one of the objective of seventh five year plan, government
was spent money on education, healthcare, sanitation and drinking water.
Question 9.
Under human capital formation, people migrate
(a) from rural area to urban area
(b) From urban area to rural area
(c) from foreign country to home country
(d) Ml of the above
Answer:
(a) from rural area to urban area
Hint:
People migrate from rural area to urban area or from home country to foreign country in search of
better jobs and high salaries.
Question 10.
How human capital formation contributes towards economic growth?
(a) By stimulating innovation and inventions
(b) By enabling human resources to understand changes in scientific advancement
(c) Human capital formation is inversely related with economic growth
Answer:
Question 11.
Which body formulates and enforce rules and regulations related to technical and professional
education in India?
(a) AICTE
(b) UGC
(c) NCERT
Answer:
(a) AICTE
Hint:
All India Council for Technical Education (AICTE) was set-up in 1945 as a national body to promote
and regulate technical and professional education system.
Question 12.
As per education data, which of the following state has the highest literacy rate in India?
(a) Delhi
(b) Kerala
(c) Mizoram
(d) Goa
Answer:
(b) Kerala
Hint:
In 2017, the most literate state is the Kerala with 93.91%. Literacy rate is one of the keys to measure
socio-economic progress.
Chapter-6 Rural development
Question 1.
Rural development is important for India. Why?
Answer:
Rural development is important because around two-third of India’s population lives in rural areas.
Question 2.
State the various infrastructural facilities which should be developed in rural areas for their
development.
Answer:
Infrastructural facilities such as electricity, irrigation and transport facilities should be developed to
promote rural development.
Question 3.
Explain why do farmers need credit?
Answer:
Farmers need credit to buy additional land, tools, fertilisers and seeds, for paying off old debt and
even for personal expenses like marriage, death, religious ceremonies, etc.
Question 4.
Why are Indian farmers caught in a debt trap?
Answer:
The Indian farmers borrow year after year and are not in a condition to pay off debts taken at high rate
of interest. The debt mounts year after year. This has created a class of landless labourers who are in a
debt trap.
Question 5.
Why have Self Help Groups (SHGs) been established?
Answer:
Self Help Groups (SHGs) have been set up to fill the gap in the formal rural credit system which has
proved to be inadequate and has not been fully integrated into the rural, social and community
development.
Question 6.
Explain the meaning of rural development.
Answer:
Rural development is a process through which attempts are made to improve the standard of living of
rural people.
Question 7.
State any two challenges in rural development.
Answer:
The two challenges are as follows
 Provision of adequate credit in rural areas.

 Improving agricultural marketing.
Question 8.
What is meant by rural credit?
Answer:
Rural credit means providing credit for the farming community.
Question 9.
Name any two institutional sources of credit.
Answer:
Two institutional sources of credit are as follows
 National Bank for Agriculture and Rural Development.

 Regional Rural Banks.
Question 10.
Categorise the borrowing needs of farmers.
Answer:
Borrowing needs of a farmer can be categorised as follows
 Productive borrowings These borrowings include loans to buy seeds, fertilisers and
agricultural equipment and implements.
 Unproductive borrowings These borrowings include loans for social purposes such as
marriage and festive occasions, or to meet expenditure on illness, death, etc.
Question 11.
Explain how Kisan Credit Card fulfills the credit needs of rural population?
Answer:
Kisan Credit Card (KCC) scheme is an example of credit facility which was introduced by the
government in 1998-99.
It facilitates access to credit from commercial banks and Regional Rural Banks. Under the scheme,
the eligible farmers are provided with a Kisan Card and passbook from the relevant bank. The farmers
can make withdrawals and repayments of cash within the credit limit as specified in the Kisan Credit
Card (KCC).
Question 12.
Enumerate the functions of cooperative credit societies.
Answer:
The cooperative credit societies pursue the following functions
 They ensure timely flow of credit to the farmers.

 They provide adequate credit support, covering all areas of needs of farmers.
Question 13.
Discuss the importance of credit in rural development. (NCERT)
Answer:
The rural economy can grow only if it has adequate flow of finance. It is capital only which can
ensure higher productivity in agriculture. Provision of rural credit enables a farmer to buy improved
seeds, fertilisers, organic pesticides and equipments. All these inputs help hire to increase his
agricultural productivity and his income.
So, importance of credit in rural development can be perceived as a means to break the!vicious circle
of low capital, low productivity and low savings of the rural poor.
Question 14.
Explain the role of micro-credit in meeting credit requirements of the poor. (NCERT)
Answer:
Micro-credit plays an important role in meeting the credit requirements of the poor. Under micro-
credit programmes, farmers get adequate credit at cheaper rates. Micro-credit programme promotes
thrift in small proportions by a minimum contribution from each member. From the pooled money,
credit is given to the needy members, which is repayable in small instalments at reasonable interest
rates. Micro-credit programme removes the need of any kind of collateral. It also helps in women
empowerment.
Question 15.
Write a brief note of Saansad Adarsh Gram Yojana.
Answer:
In October, 2014, the Government of India introduced a new scheme called Saansad Adarsh Gram
Yojana (SAGY). Under this scheme, Members of Parliament (MPs) need to identify and develop one
village from their constituency. MPs are expected to facilitate a village development plan, motivate
villagers to take up activities and build infrastructure in the areas of health, nutrition and education.
Question 16.
Discuss the traditional and modern challenges related to rural development.
Answer:
Traditional challenges are those which the rural areas have been facing for a long time. Rural credit
and agricultural marketing are examples of traditional challenges.
Modern challenges are those which the rural areas face with the changing times. Diversification of
agricultural activities and problems related to organic farming are examples of modern challenges.
Question 17.
Categorise rural credit on the basis of time period.
Answer:
Rural credit may be classified as
 Long-term credit These loans are for a period of 5 to 20 years. These loans are required to
acquire permanent assets like I tractors, land, costly equipment, tubewells, letc.
 Medium-term credit Such loans generally Stretch over a period of 12 months to 5 years.
These loans are required for purchasing machinery, constructing fences and digging wells.
 Short-term credit These loans are for a period of 6 to 12 months. These loans are required for
buying seeds, tools, manure, fertilisers, etc. These loans are given to the needy borrowers by
cooperatives moneylenders and banks.
Question 18.
Rural banking has not been able to fulfill the credit needs of farmers. Why?
Answer:
Rural banking has not been able to give adequate credit to farmers. This is mainly due to lack of
proper infrastructure and instruments to dispense credit to needy farmers. It has also failed to develop
a culture of deposit mobilisation, lending to worthwhile borrowers and effective loan recovery.
Agriculture loan default rates are also high with high incidence of overdue instalments by the farmers.
Question 19.
As an agriculturist, suggest any two measures to improve the existing system of agricultural finance.
Answer:
As an agriculturist, I would offer following suggestions to improve the existing system of agricultural
finance
 The supply of finance should be fully institutionalised and dependence on private sources for
credit should be eliminated.
 It should be ensured that finance is used for production. Loans can be given in the form of
goods like seeds, fertilisers, etc.
Question 20.
Why is rural development important for India?
Answer:
Rural development is important for India because of the reasons stated below
 Even today, nearly 70% of the population of India resides in rural areas. So, if there is growth
and prosperity in these areas, it will fesult in the growth and prosperity of the nation as a
whole.
 Rural development will help to create employment opportunities in the rural areas. This will
not only raise the standard of living of the rural population, but also check the problem of
migration.
 Rural development creates opportunities in . rural areas for education and skill development.
This helps to increase the efficiency, productivity, mobility, income and standard of living of
the people.
Question 21.
What steps should be taken relating to finance, so that the objective of rural development is achieved?
Answer:
To achieve the objective of rural development, following steps related to finance can be taken
 The supply of finance should be fully institutionalised and dependence on private sources for
credit should be eliminated.
 The general interest rate should be low. The banks should charge different rates for different
uses.
 The basis of credit should not be mortgage of any security. Production or productivity of land
should be the basis for the approval of loans.
 The conditions of repayment of loans should be different so as to suit different circumstances.
 It should be ensured that finance is used for production. Loans can also be given in the form
of goods like seeds, fertilisers, etc.
 There should be adequately trained and devoted personnel to manage the financial
institutions. The persons should have full knowledge of agriculture and interest of farmers.
Question 22.
Give the advantages and limitations of rural banking.
Answer:
Advantages of rural banking are as follows
 Farm and non-farm output raised with the help of advisory services and credit facilities.
 Food security is achieved. Abundant buffer stock of grains is available now.
 Credit has been provided for self-employment schemes, leading to increase in rural
employment levels.
Limitations of rural banking are as follows
 Small and marginal farmers receive only a very small portion of the institutional credit.
 Rural banking is suffering from the problems of large amount of over dues and default rate.
 The sources of institutional finance are inadequate to meet the requirements of agricultural
credit.
 There exist regional inequalities in the distribution of institutional credit.
Question 23.
Write a short note on NABARD.
Answer:
NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved
in rural credit.
The main functions of NABARD are
 To grant long-term loans to the State Government for subscribing to the share capital of
cooperative societies.
 To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and
primary cooperative societies.
 To promote research in agriculture and rural development.
 To serve as a refinancing agency for the institutions providing finance to rural and
agricultural development.
 To help tenant farmers and small farmers to consolidate their landholdings.
Question 24.
What do you mean by rural development? Bring out the key issues in rural development. (NCERT)
Answer:
Rural development is a comprehensive term which essentially focuses on action for the development
of areas that are lagging behind in the overall development of the village economy. It is a process
whereby the standard of living of rural people, especially rural poor people, rises continuously.
Following are the key issues in rural development
 Development of the productive resources of each locality.

 Development of human resources by providing opportunities for adult literacy, female
literacy, education and skill development.
 Development of human resources by providing health facilities, addressing both sanitation
and public health.
 Honest implementation of land reforms.
Question 25.
What is the meaning of regulated markets?
Answer:
Regulated markets have been established by the government where sale and purchase of agricultural
produce is monitored by market committee consisting of representatives of government, farmers and
traders.
Question 26.
Why do people look for employment in non-farm sectors?
Answer:
As agriculture is already overcrowded and cannot offer additional employment, people seek
employment in non-farm sectors.
Question 27.
Name any two non-farm activities which should be developed in rural areas.
Answer:
The two non-farm activities which should be developed in rural areas are
 Handicrafts
 Poultry
Question 28.
Name some horticultural crops.
Answer:
Fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are
the examples of some horticultural crops.
Question 29.
Name the major states which are producers of marine products.
Answer:
Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.
Question 30.
What do you mean by agricultural marketing? (NCERT)
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation,
packaging, grading and distribution of different agricultural commodities across the country. The
agricultural marketing system is a link between the farm and the non-farm sectors.
Question 31.
Which policy assures a minimum income to the farmers?
Answer:
The policy of Minimum Support Price (MSP) assures a minimum income to the farmers.
Question 32.
Which government body maintains buffer stocks of crops?
Answer:
Food Corporation of India
Question 33.
Which period is referred to as the ‘golden revolution’?
Answer:
The period between 1991 and 2003 is referred to as golden revolution.
Question 34.
What is the role of buffer stocks in the context of agricultural marketing?
Answer:
The Government of India has adopted the policy of buffer stocks to minimise the fluctuations in the
food prices. Buffer stocks serve as shock absorbers in the economy and provide a defence mechanism
against the widely fluctuating price levels.
Under the buffer stock policy, the government builds up stocks of food through direct purchases from
the farmers and releases these stocks for sale in the domestic market where prices are increasing.
Also, buffer stock operations aim at eliminating unduly low prices consequent to bumper crops.
Question 35.
What is the importance of developing proper storage facilities in rural areas?
Answer:
Farmers are forced to sell their crops at very low prices to traders because of the fear of it getting
damaged from fire, rodents or pests due to lack of proper storage. It is essential to develop proper
storage facilities in rural areas so that farmers can wait for better price for their produce in the market.
Question 36.
Explain the meaning of the term ‘distress sale’?
Answer:
Lack of agricultural marketing infrastructure often forces the farmers to sell their produce at low
prices for fear of spoilage or to pay off an imminent debt. This is termed as distress sale. Farmers tend
to suffer highly on account of these sales, because they not only get a low price for their produce, but
are also cheated by use of false weights and are charged a high commission.
Question 37.
Write a brief note on ‘Operation Flood’.
Answer:
It is a system whereby all the farmers can pool their milk produced according to different grading
{based on quality) and the same is processed and marketed to urban centres through cooperatives.
In this system, farmers are assured of fair price and income from the supply of the milk to urban
markets. Gujarat state holds a success story of the efficient implementation of milk cooperatives,
which has been followed by many states.
Question 38.
What is organic farming and how does it promote sustainable development? (NCERT)
Answer:
Conventional agriculture relies on chemical fertilisers and toxic pesticides for higher yields of crops.
These chemicals and pesticides enter the food supply, penetrate the water sources, harm the livestock,
deplete the soil and damage the natural environment. Organic farming is an eco-friendly technique of
growing crops, which promotes sustainable development.
In other words, organic agriculture is a whole system of farming that restores, maintains and enhances
the ecological balance and enhances the food safety, thus encouraging the practices towards
sustainable development.
Question 39.
Has globalisation helped the farmers in marketing their produce and raising their standard of living?
Answer:
Globalisation has expanded the market of the national companies and has allowed various MNCs to
operate in India. So, several national and international fast food chains and hotels have been opened in
India. These organisations enter into contracts with the farmers to supply them farm products of the
desired quality at reasonable prices, thus helping the farmers to market their produce.
Question 41.
Explain the role of multinational companies in rural development.
Answer:
Economic reforms offered the opportunities to multinational companies to expand their functions all
around the country. Many multinational companies are entering in the rural marketing.
They are doing well for the sake of farmers as stated below
 They are making contracts with farmers.

 They are motivating farmers to grow desirable food, fruits and vegetables of the desired
quality.
 They are providing them seeds and other inputs.
 They are offering them pre-decided prices.
Question 42.
Why is agricultural diversification essential for sustainable livelihoods? (NCERT)
Answer:
Diversification is essential because there is greater risk in depending exclusively on farming for
livelihood and to provide productive sustainable livelihood options to rural people. Most of the
agricultural employment activities are concentrated in the Kharif season while during the Rabi season
it becomes difficult to find gainful employment in areas lacking in irrigation facilities.
Therefore, expansion into other sectors is essential to provide supplementary gainful employment and
in realising higher levels of income for rural people to overcome poverty and other problems. Hence,
there is a need to focus on allied activities, non-farm employment and other emerging alternatives of
livelihood for providing sustainable livelihoods in rural areas.
Question 43.
Mention some obstacles that hinder the mechanism of agricultural marketing and create a need for the
government to interfere in this sector. (NCERT)
Answer:
Some obstacles that hinder the mechanism of agricultural marketing are
 Faulty weighing and manipulation of accounts by traders which results in exploitation of

farmers when they sell their products to traders.
 Farmers do not have proper storage facilities to store their produce for selling later at a better
price. Hence, they are forced to sell even at lower price to save the produce from decaying.
 Due to lack of knowledge about the prices prevailing in the markets, farmers are forced to sell
their produce at low prices.
Question 44.
What are the alternative channels available for agricultural marketing? Give some examples.
(NCERT)
Answer:
Alternative marketing channels were developed to bring the farmers in direct contact with the
consumers. These channels help in increasing farmers’ share in prices paid by the consumers’. Some
examples of these channels are
 Apni Mandi (Punjab, Haryana and Rajasthan)

 Hadapsar Mandi (Pune)
 Rythu Bazars (vegetable and fruit markets in Andhra Pradesh)
 Uzhavar Sandies (farmers markets in Tamil Nadu)
Further, several national and multinational fast food chains are increasingly entering into contracts/
alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc) of the
desired quality by providing them with not only seeds and other inputs but also assured procurement
of the products at pre-decided prices.
Question 45.
Do you think various measures taken by the government to improve agricultural marketing are
sufficient? Discuss. (NCERT)
Answer:
Government has adopted various measures for improving agricultural marketing such as regulation of
markets, provision of physical infrastructure, co-operative marketing and policy measures like MSP,
etc. But even after these measures taken by the government, agricultural markets are still
predominated by moneylenders, rural political elites, big merchants and rich farmers which are doing
private trade.
The current infrastructure facilities are inadequate to meet the growing demand, and need to be
improved further. Cooperatives are also suffering from problems like inadequate coverage of farmers
as members, lack of appropriate link between marketing and processing co-operatives and inefficient
financial management.
Question 46.
Explain the role of non-farm employment in promoting rural diversification. (NCERT)
Answer:
Agricultural sector in India is already overcrowded and suffering from the problem of disguised
unemployment. A major proportion of the increasing labour force needs to find alternate employment
opportunities in other non-farm sectors.
Animal husbandry, fisheries, horticulture and information technology are the key areas of non-farm
activities which have helped in promoting rural diversification. Rural workforce is actively engaged in
various non-farm activities to augment their earnings.
Question 47.
“Information technology plays a very significant role in achieving sustainable development and food
security.” Comment. (NCERT)
Answer:
Information technology plays a very significant role in achieving sustainable development and food
security in the following ways
 It can act as a tool for releasing the creative potential and knowledge embedded in our people.
 Issues like weather forecasting, crop treatment, fertilisers, pesticides, storage conditions, etc
can be well administered, if expert opinion is made available to the farmers.
 The quality and quantity of crops can be increased manifold, if the farmers are made aware of
the latest equipments, technologies and resources.
 It has potential of employment generation in rural areas.
Question 48.
Enlist some problems faced by farmers during the initial years of organic farming. (NCERT)
Answer:
The problems faced by farmers during the initial years of organic farming are
 Organic farming requires inputs like organic manure, bio-fertilisers and organic pesticides.
Though they are cheaper yet farmers find it difficult to get them.
 The yield from organic farming is much less than that of modern agricultural farming.
 The price of organic food is high, so it is difficult to sell them.
 Organic products generally have more . blemishes and shorter shelf life.
Question 49.
Explain the steps taken by the government in developing rural markets. (NCERT)
Answer:
Following are the steps taken by the government in developing rural markets
(i) Regulation of markets: The government has established regulated markets where the sale and
purchase of the produce is mbnitored by Market Committee consisting of representatives of
government, farmers and traders. Regulation of markets helps to create orderly and transparent
marketing conditions.
(ii) Improvement in physical infrastructure: Through this measure, the government ensures the
improvement in physical infrastructure such as roads, railways, warehouses, cold storages etc.
(iii) Cooperative marketing: The government encourages farmers to form producer marketing
cooperative societies so that they get better price of their produce through collective sale.
(iv) Supportive policies: In addition to the above policies, the following supportive policies have also
been introduced to develop rural markets
 Minimum Support Price (MSP): The government fixes MSP for agricultural output. This
policy assures a minimum income to the farmers.
 Maintenance of buffer stock of wheat and rice: When market price falls much below the
MSP, then government purchases the produce from the farmers at MSP and maintains buffer
stock.
 Distribution of foodgrains and sugar The buffer stocks are distributed among the poor through
the Public Distribution System (PDS) at subsidised prices.
Question 50.
Differentiate between ‘Green Revolution’ and ‘Golden Revolution’.
Answer:
Difference between ‘Green Revolution’ and ‘Golden Revolution’:
Green Revolution Golden Revolution

The introduction of High Yielding Varieties (HYV) of The rapid growth in the production of diverse
seeds and the increased use of fertilisers, pesticides and horticultural crops such as fruits, vegetables, tuber
irrigation facilities which led to substantial increase in crops, flowers, medicinal and aromatic plants, spices
output of cereals is known as the green revolution. and plantation crops is known as golden revolution.
It led to increase in the production of fruits, vegetables,
It led to increase in the production of rice and wheat.
flowers, aromatic plants, spices etc.
Green revolution made India self-sufficient in the Golden revolution made India a world leader in the
production of foodgrains. production of mangoes, bananas, coconut and spices.
Green revolution provided food security and raised Golden revolution provided nutrition and sustainable
agricultural incomes. livelihood options.
Question 51.
Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.
(NCERT)
Answer:
(i) Importance of animal husbandry: The following points bring for the importance of animal
husbandry as a source of diversification
 Today, this sector alone provides alternate livelihood options to a significant number of
women and over 70 million small and marginal farmers including landless labourers.
 Milk production of the Indian dairy sector has increased by more than five times between
1960-2009 with the successful implementation of ‘Operation Flood’.
 Meat, eggs, wool and other by-products are also emerging as important productive sectors for
diversification.
(ii) Importance of fisheries The water bodies consisting of sea, oceans, rivers, lakes etc are a source of
living for the fishing community. This sector is important for the reasons enumerated below:
 Today, toted fish production accounts for 0.8 % of the total GDP. Kerala, Gujarat,
Maharashtra and Tamil Nadu are the major producers of marine products.
 Fishing has become a source of women empowerment. Even though women are not involved
in active fishing, about 60% of the workforce in export marketing and 40% in internal
marketing are women.
(iii) Importance of horticulture Diverse horticultural crops such as fruits, vegetables, tuber crops,
flowers, medicinal and aromatic plants, spices and plantation crops are grown in India. This sector is
important for the reasons enumerated below:
 These crops play a vital role in providing food and nutrition, along with sustainable
employment opportunities.
 During 1991-2003, ‘Golden Revolution’ took place. Horticulture became highly productive
during this period due to planned investment and the sector emerged as a sustainable
livelihood option.
 India has emerged as a world leader in producing a variety of fruits like mangoes, bananas,
coconuts, cashew nuts and a number of spices and is the second largest producer of fruits and
vegetables.
 Economic condition of farmers engaged in horticulture has improved.
 Flower harvesting, nursery maintenance, hybrid seed production and tissue culture,
propagation of fruits and flowers and food processing are highly remunerative employment
options for women in rural areas.
Question 52.
Identify the benefits and limitations of organic farming. (NCERT)
Answer:
Following are the benefits of organic farming
 Organic fanning substitutes costlier agricultural inputs such as HYV seeds, chemical
fertilisers, pesticides, etc with locally produced organic inputs which are cheaper and thereby
generate better returns on investment for farmers.
 Organic farming generates income through exports as the global demand for organically
grown crops is increasing.
 Organically grown food has more nutritional value than food grown through chemical
farming thus creating a positive effect on health.
 Organic farming is appropriate for India as organic farming is more labour intensive than
conventional farming.
 Organic farming promotes soil that is teaming with life and rich in micro nutrients which can
be used for decades to grow crops virtually year-round in many parts of the world.
Following are the limitations of organic farming
 Organic farming is labour intensive. Thus, it is beneficial only for small farmers who have
abundant labour in his/her family.
 Organic farming is very expensive, the farmer has to carry out the transition, modify the soil
structure, etc.
 Organic produce is not traded in many markets, therefore marketing is difficult.
 Organic food prices are not stable and keep fluctuating time to time.
 Organic farming requires a lot of time and greater interaction between a farmer and his crop.
Question 1.
What percentage of India’s population is dependent on agriculture for their livelihood?
(a) One-fourth
(b) One-half
(c) One-third
(d) Two-third
Answer:
(d) Two-third
Hint:
Even today more than two-third of India’s population depends on agriculture which is not generating
enough output to provide a decent living for them.
Question 2.
Which one is not a challenge in rural development?
(a) Poverty
(b) Illiteracy
(c) Low productivity
(d) None of these
Answer:
(d) None of these
Hint:
Challenges in rural development includes lack of credit, irrigation, marketing facilities, high illiteracy
and poverty and low productivity due to use of old technology.
Question 3.
Which one is not a source of non-institutional rural credit?
(a) Friends
(b) Self help groups
(c) Relatives
(d) Landlords
Answer:
(d) Landlords
Hint:
non-institutional sources are those sources or credit which are not attached to any formal institution.
These include friends, moneylenders, landlords, relatives etc. Self-help groups comes under
institutional source of rural credit.
Question 4.
Which of the following is/are the function(s) of agriculture marketing?
(a) Assembling and grading
(b) Storage and transportation
(c) Packaging
Answer:
Hint:
Agriculture marketing is a process that involves functions of assembling, storage, processing,
packaging, transportation, grading and distribution of agricultural commodities throughout the
country.
Question 5.
Which one is not a government measure to improve agriculture marketing?
(a) Regulation of markets
(b) Cooperative marketing
(c) Development of physical infrastructure
Answer:
Hint:
Government measures to improve agricultural marketing includes supportive policies, regulation of
agriculture markets, cooperative marketing, development of physical market infrastructure etc.
Question 6.
Which government agency purchases and maintain buffer stocks of food grains (wheat and rice)?
(a) Food Corporation of India (FCI)
(b) Public Distribution System (PDS)
(c) Food Safety and Standards Authority of India (FSSAI)
(d) Reserve Bank of India (RBI)
Answer:
(a) Food Corporation of India (FCI)
Question 7.
Which of the following is/are the key challenge(s) in rural development?
(a) Honest implementation of land reforms
(b) Development of productive activities
(c) Improving agricultural marketing
Answer:
Question 8.
Why non-institutional sources are not good sources of rural credit?
(a) They charge high rate of interest
(b) They manipulate accounts
(c) They keep land or other assets as collateral
Answer:
Hint:
non-institutional sources are exploiting farmers by charging high interest rates and manipulate credit
accounts. They also keep farmer’s land or other assets as collateral security.
Question 9.
Why farmers need rural credit?
(a) To purchase seeds, fertiliser, pesticide and insecticide
(b) To purchase tractors, tube well and animals
(c) To repay previous loans
Answer:
Hint:
Farmers require agricultural credit to purchase seeds, fertiliser, pesticide, insecticide, tractor, crop
insurance, tube well, animals and to repay previous loans.
Question 10.
Which of the following is/are the feature(s) of diversification of crop production in agriculture?
I. Shifting of single cropping system to multi-cropping system.
II. Growing cash crops.
III. Diversification providing ecological balance.
(a) Only I
(b) Only II
(c) II and III
(d) I, II and III
Answer:
(d) I, II and III
Hint:
Diversification of crop production includes multi-cropping and cash cropping. It is good for
ecological balance in agriculture and help the farmers to earn more money.
Question 11.
Diversification of agricultural activities includes
(a) animal husbandry
(b) fisheries
(c) horticulture
Answer:
Hint:
Diversification of productive/non-farm activities is a part of diversification of agricultural activities,
which includes animal husbandry, fisheries, horticulture etc.
Question 12.
Organic farming is a part of
(a) economic growth
(b) economic development
(c) sustainable development
(d) green revolution
Answer:
(c) sustainable development
Hint:
Sustainable development includes organic farming. Organic farming is traditional way of farming
without use of chemical inputs.
Chapter-6 employment
Question 1.
State the importance of studying the worker population ratio.
Answer:
It is important to study the worker population ratio because it gives an insight on the employment
situation of the country.
Question 2.
Who is a worker? (NCERT)
Answer:
A worker is an individual who is doing some productive work to earn a living.
Question 3.
Raj is going to school. When he is not in school, you will find him working in his farm. Can you
consider him a worker? Why? NCERT
Answer:
Raj is not a worker because he is not actively engaged in production activity. Workers include all
those who are fit for work and are willing and available to work. Workers do not include children, old
people, handicapped etc.
Question 4.
Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is
owned and operated by her husband. Can she be considered a worker? Why? (NCERT)
Answer:
Meena is a self-employed worker. Even though she is working in her husband’s cloth shop, she will
be considered as a worker.
Question 5.
Who is a casual wage labourer? (NCERT)
Answer:
Those people who are not hired by their employers on a regular/permanent basis and do not get social
security benefits, are said to be casual workers/ labourers, e.g. Construction workers.
Question 6.
What is meant by employment?
Answer:
Employment means an activity which helps an individual to earn his living.
Question 7.
Who are self-employed workers?
Answer:
The workers who own and operate an enterprise to earn their livelihood are referred to as self-
employed workers.
Question 8.
Who are hired workers?
Answer:
Those people who are hired by others and are paid wages or salaries as a reward for their services are
called hired workers.
Question 9.
Which type of work is preferred by female workers? Why?
Answer:
Female workers give preference to self-employment. It is because women, both in rural and urban
areas are less mobile.
Question 10.
Explain the term ‘casualisation of workforce’.
Answer:
The movement of labour from regular salaried work to casual wage work is referred to as
casualisation of workforce.
Question 11.
What is meant by ‘jobless growth’?
Answer:
It is a phenomenon which means that the Gross Domestic Product (GDP) of a country is rising but
without a corresponding increase in employment opportunities.
Question 12.
Explain the meaning of informalisation of workforce.
Answer:
It implies that there is a continuous decline in the percentage of workforce in the formal sector and a
corresponding rise in the percentage of workers in informal sector.
Question 13.
Which establishments are referred to as formal sector establishments?
Answer:
All public sector establishments and those private sector establishments which employ 10 or more
hired workers are called formal sector establishments.
Question 14.
Why is employment an important component of the Indian development policy?
Answer:
Employment is considered important in the Indiari development policy because of the following
reasons
 More employment will lead to higher level of national income since, production and
employment are directly related.
 Employment is crucial to removal of poverty.
Question 15.
Explain the terms labour supply, labour force and workforce.
Answer:
Labour supply: It refers to the number of persons willing to work at different wage rates. It depends
upon the existing wage rate and is measured in terms of man days. Labour force It refers to the
number of persons actually working or willing to work. It does not depend upon the wage rate and is
measured in terms of number of days.
Workforce: It refers to the number of persons actually working. This measure does not include those
persons who are willing to work but are not getting work.
Question 16.
It is not easy to maintain an employment growth rate of 2% for a country like India. Why?
Answer:
The rate of investment and choice of technology determine the growth rate of employment. The
emphasise on growth of the economy through modernisation of production techniques has resulted in
jobless growth in India. The modern techniques use capital intensive method of production, which is
cost effective and gives more output by employing less labour. Therefore, it has been difficult to
maintain an employment growth rate of 2% for our country.
Question 17.
Define worker population ratio. (NCERT)
Answer:
Worker population ratio is defined as the ratio between the total number of workers in a country and
the population in the country, multiplied by 100. Symbolically,
Worker Population Ratio
(Total number of worker ÷ Total population)×100
Question 18.
Analyse the recent trends in sectoral distribution of workforce in India. (NCERT)
Answer:
Distribution of workforce in industrial sector shows substantial shift from farm work to non-farm
work. In 1999-2000, about 60% of workforce was engaged in primary sector and in 2009-10, this
proportion has declined to 37.2%. Secondary and tertiary sectors showed increase from 16% to 21.5%
and 24% to 25.3% respectively. This indicates that the economy is progressing.
Question 19.
Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he
unemployed? Why? What kind of jobs could persons like Victor be doing? (NCERT)
Answer:
No, Victor is employed because he works for two hours daily for which he is paid. He is a casual
worker. Victor might be doing jobs on a casual basis, such as painting a house, plumbing work,
working as an electrician, distributing newspaper, milk etc.
Question 20.
Explain the role of trade unions in the protection of workforce.
Answer:
Trade unions are voluntary organisations of workers formed to promote and protect the interests of
workers through collective action. Workers use.trade unions as their representative voice to demand
their rights and improve their living and working conditions.
The formation of trade unions was a reaction against the mechanisms of pauperisation, low pay, long
working hours, child labour and generally appalling working conditions. Thus, the role of trade unions
is to fight against poverty of workers, exploitation and the violation of their basic human dignity and
to promote social justice in the global economy.
Question 21.
How will you know whether a worker is working in the informal sector? (NCERT)
Answer:
From the following points, we can know whether a worker is working in the informal sector
 The number of workers employed is less than 10.

 The workers are not entitled to social security schemes.
 The workers are not allowed to form trade unions.
 The workers are not protected by labour laws.
Question 22.
Labour force participation rate is very low in India. What measures will you suggest to raise labour
force participation rate?
Answer:
I would suggest following measures to raise labour force participation rate
 There should be drastic reduction in birth and death rates to improve the age structure of
population.
 There should be more and more opportunities for women to participate in economic activities.
 The general standard of health of the population must be raised.
 Employment opportunities should be increased.
Question 23.
Compared to women, more men are found working in India. Why is this trend witnessed in India?
Answer:
The participation rate of women in the employment market, for both, rural and urban areas, is quite
low. Some of the reasons for such a low rate are given below
 India is typically a male dominated country. Because of this, females are accorded secondary
status and parents do not take steps to educate them.
 Even if they are educated, the social beliefs and set-up discourages them to work.
Question 24.
Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
(NCERT)
Answer:
Yes, it is necessary to generate employment in the formal sector than in the informal sector because
those who work in the informal sector do not get any regular income and do not get protection from
the government. Workers are dismissed without any compensation. Technology used is outdated and
they also do not maintain any accounts. Workers live in slums or badly built houses.
Those who work in the formal sector on the other hand earn more than those in the informal sector
and also enjoy social benefits. It is thus, necessary to generate more employment in the formal sector.
Question 25.
What changes should be incorporated in the employment policy in the present context?
Answer:
Following changes should be incorporated in the employment policy in India in the present context
 The employment policy should emphasise on both complete and more productive
employment.
 Employment policy must have the objective of higher rate of capital formation.
 Employment should be generated in the normal process of development.
 Employment policy should give more emphasis to self-employment.
 Measures should be taken to increase employment opportunities for women.
 Emergence of destabilising factors in the economy should be avoided through greater
efficiency in planning.
 There should be an effective reform of the educational system. Emphasis should be on
vocational and technical knowledge.
 Cottage industry should be promoted to reduce seasonal unemployment
Question 26.
Give the differences between formal sector and informal sector.
Answer:
Differences between formal sector and informal sector:
Formal Sector Informal Sector
All public and private sector establishments
All establishments which employ less than 10
which employ 10 or more hired workers comprise
workers comprise the informal sector.
the formal sector.
Government exercises control over this sector by Government has no control over this sector. Except
.passing necessary acts and formulating rules and for the Minimum Wages Act, no other act is
regulations. applicable on this sector.
Workers working in this sector are entitled to Workers working in this sector are not entitled to
social security benefits. social security benefits.
The workers working in formal sector have a The workers working in informal sector do not
right to form trade unions. enjoy any such right.
Formal sector offers better pay scales to its The pay scales in the informal sector are
workers. comparatively low.
Workers working in formal sector enjoy job Workers working in informal sector does not enjoy
security. They cannot be dismissed without job security. They can be dismissed without a notice
giving them a due notice and/or compensation. and no compensation is offered to them.
Question 27.
Compared to urban women more rural women are found working. Why? (NCERT)
Answer:
The difference in participation rates is very high between urban and rural women. In urban areas, for
every 100 urban females, only about 14 are engaged in some economic activities. In rural areas, for
every 100 rural women, about 26 participate in the employment market.
It is common to find that where men are able to earn high incomes, families discourage female
members from taking up jobs. Earnings of urban male workers are generally higher than rural males
and so urban families do not want females to work.
Apart from this, many activities of the household in which urban women are engaged, are not
recognised as productive work, while women working on farms in the rural areas are considered a part
of the workforce if they are being paid wages in cash or in the form of foodgrains.
Question 28.
The following table shows the population and worker population ratio for India in 1999-2000. Can
Region Estimates of Population (in crore) Worker Population Ratio Estimated Number of Workers (in crore)
Rural 71.88 41.9 71.88100x 41.9 = 30.12
Urban 28.52 33.7 ?
Total 100.40 75.6 ?
you estimate the workforce (rural and urban) for India? (NCERT)
Answer:
Worker Population Ratio= (Total number of worker ÷ Total population)×100
Number of Workers = Total Population × Worker population Ratio
Region Estimates of Population (in crore) Worker Population Ratio Estimated Number of Workers (in crore)
Rural 71.88 41.9 71.88100x 41.9 = 30.12
Urban 28.52 33.7 28.52100x 33.7 = 9.61124
Total 100.40 75.6 100.40100x 75.6 = 75.9024
Question 29.
Why are regular salaried employees more in urban areas than in rural areas? (NCERT)
Answer:
Regular salaried employees are more in urban areas than in rural areas due to following reasons
 Education and training Regular salaried employment requires certain educational

qualifications and professional skills. Education and training facilities are not as good in rural
areas as in urban areas. Therefore, chances of regular employment are higher for urban
people.
 Infrastructure Large companies including MNCs are concentrated in the urban areas due to
the presence of economic infrastructure and availability of modern facilities like banks,
transport, communication etc. These companies hire regular salaried employees, which results
in concentration their in the urban areas.
 Agriculture Rural population is primarily engaged in agricultural sector and are not willing to
take the risk of leaving their farms for regular salaried employment. This is also a reason for
regular salaried employment to be less prevalent in rural areas.
Question 30.
Why are less women found in regular salaried employment? (NCERT)
Answer:
Less women are found in regular salaried employment due to the following reasons:
 Lack of education facilities Female education is not given due importance in India and hence,
majority of the women in India do not have the educational qualification and professional
skills required for regular salaried employment.
 Discouragement from family In India, families still do not want the female members to step
out from the house for work especially if it is for long hours, as in regular salaried
employment.
 Family responsibilities Household work and responsibility of children and other family
members do not allow the women to devote time and energy in regular employment.
 Wage discrimination Gender based wage discrimination is prevalent in India which
demotivates the women in regular salaried employment and they prefer being at home or opt
for self-employment opportunities.
 Security issues Rise in crime against women has also been a reason of women withdrawing
from regular employment due to security concerns. Late working hours in private sector firms
and MNCs are not found suitable by most of the women.
Question 31.
Do you think that in the last 50 years, employment generated in the country is commensurate with the
growth of GDP in India? How? (NCERT)
Answer:
No, I don’t think that in the last 50 years, employment generated in the country commensurate with
the growth of GDP in India. In 2005, the growth rate in employment was 2.89 % while growth rate in
GDP was 6.1 %. The difference between the growth rate of GDP and the growth rate of employment
is indicative of the phenomenon of ‘jobless growth’.
Jobless growth is defined as a situation in which there is an overall acceleration in the growth rate of
GDP in the economy which is not accompanied by an expansion in employment opportunities. This
means that in an economy, without generating additional employment, we have been able to produce
more goods and services. This is because of the use of capital-intensive methods of production.
Question 32.
Name the form of unemployment where more people work than what is required.
Answer:
Disguised unemployment or hidden unemployment.
Question 33.
What is meant by cyclical unemployment?
Answer:
Cyclical unemployment means unemployment which arises as a result of different phases of trade
cycle.
Question 34.
State two forms of rural unemployment in India.
Answer:
 Seasonal unemployment
 Disguised unemployment
Question 35.
Name the two forms of urban unemployment in India.
Answer:
 Educated unemployment
 Technological unemployment
Question 36.
What is meant by unemployment?
Answer:
Unemployment is a situation in which people who are capable and willing to work are not getting
work.
Question 37.
Who are not considered to be a part of the workforce?
Answer:
Children below the age of 15 years and adults above the age of 60 years are not considered to be a
part of the workforce.
Question 38.
In which age group, persons constitute the working population?
Answer:
Persons in the age group of 15-60 years constitute the working population.
Question 39.
Define unemployment according to NSSO.
Answer:
NSSO defines unemployment as a situation in which all those who owing to lack of work, are not
working but seek work through employment exchanges, intermediaries, friends or relatives. They also
seek work by making applications to prospective employers or express their willingness or availability
for work under prevailing conditions of work and remunerations.
Question 40.
Sometimes people prefer to be voluntarily unemployed. Why?
Answer:
People prefer to be voluntarily unemployed for the below mentioned reasons
 They do not want to work at the wages that are being offered.
 They are not willing to migrate to the place at which job is being offered.
 They think that the job offered is below their calibre.
Question 41.
Unemployment in India is considered to be a chronic problem. Why?
Answer:
Unemployment in India is considered to be a chronic problem because it has been a long-term
phenomenon. India is facing this problem ever since independence and has not yet been able to solve
this problem. The absolute number of unemployed is increasing year by year. India has not been able
to generate enough jobs due to lack of capital and low rate of growth in the industrial sector.
Question 42.
Do you think that unemployment is related to poverty?
Answer:
Yes, I think that unemployment is related to poverty. Poor people do not have enough resources for
economic purpose. For example, a poor farmer cannot use the good variety of seeds and equipments.
Due to poverty, they are not in a position to maintain efficiency and productivity. Poverty encourages
farmers to mortgage their land to money lenders which in long-run, increases unemployment. Also, it
is not possible for poor men to have proper education to improve their mental ability. Therefore, poor
people are not able to get jobs and are unemployed.
Question 43.
Why is unemployment considered to be an economic as well as a social problem?
Answer:
Unemployment is both an economic and a social problem. Unemployment is an economic problem in
the sense that unemployed persons will be consumers only without being a producer. Non-utilisation
of human resources due to unemployment involves double cost of maintenance and loss of output.
Unemployment is a social problem in the sense that it causes enormous sufferings to unemployed
workers due to their reduced or nil income. Many social evils like dishonesty, immorality, drinking,
gambling, robbery, etc are the outcome of unemployment. It causes social disruption in the society
and the government has to incur a heavy unproductive expenditure on law and order.
Question 44.
Give the salient features of the unemployment situation in India.
Answer:
Following is some of the salient features of the unemployment situation in India
 The incidence of unemployment is much higher in urban areas than in rural areas.
 Unemployment rates for women are higher than those for men.
 Under employment is higher in case of women.
 Incidence of unemployment among the educated is much higher.
Question 45.
Explain role of government in generating employment opportunities.
Answer:
The government generates employment through direct and indirect efforts. The government makes
direct efforts at employing people in various departments for administrative purposes. It runs various
enterprises and when they result in increased output of goods and services, they lead to further
increase in employment.
The various private enterprises that are linked to the government enterprises might also benefit from
increased output of these enterprises and thus, increase their output and employment also. This way
government also indirectly generates employment.
Question 46.
You are residing in a village. If you are asked to advise the village panchayat, what kinds of activities
would you suggest for the improvement of your village which would also generate employment?
NCERT
Answer:
I would suggest the following activities to generate employment in village:
 There should be multiple cropping in the village.

 Other activities related to agriculture such as plantation, horticulture, dairying, animal
husbandry should be encouraged.
 Cottage industry should be encouraged.
 More and more facilities of education, health services roads etc should be created in the
village.
Question 47.
Suggest the measures for increasing employment opportunities for women.
Answer:
I shall suggest the following measures to increase the employment opportunities for women:
 Education and training opportunities for women should be further expanded, diversified and
made more easily accessible.
 Residential accommodation for working mothers should be increased.
 There should be much more facilities of creches and child care during the working hours of
mothers.
 There should be large scale publicity and building of public opinion in favour of employment
of women.
Question 48.
Briefly discuss the types of unemployment found in rural and urban areas of India.
Answer:
Unemployment is a situation under which those who are willing and capable to work, do not get work.
Following are the types of unemployment found in rural and urban areas of India:
 Open unemployment: It refers to that situation wherein the worker is willing to work and he
has the necessary ability to work, yet he does not get work. He remains unemployed for full
time.
 Seasonal unemployment: It occurs in case of agriculture, ice-cream factories, woollen
factories, etc which are a seasonal occupation. They have busy and slack seasons. In the off-
season, there is no work. The result is seasonal unemployment.
 Disguised unemployment: It is when marginal physical productivity of labour is zero or
sometimes it becomes negative. An individual is working but he is unable to add to the
productivity or to the output.
 Industrial unemployment: It includes those illiterate persons who are willing to work in
industries, mining, transport, trade and construction activities etc. Problem of unemployment
in industrial sector has become acute because of increasing migration of rural people to urban
industrial areas in search of employment.
 Educated unemployment: In India, the problem of unemployment among the educated people
is also quite grave. It is a problem spread across all parts of the country because of massive
expansion in the education facilities. These facilities have contributed to the growth of
educated persons who are on the lookout for white collar jobs.
 Technological unemployment: Technological upgradation is taking place in all spheres of
activity. People who have not updated their skills as per the latest technology, become
technologically unemployed.
Question 49.
What is meant by seasonal unemployment? What measures will you suggest for reducing this kind of
unemployment in India?
Answer:
It refers to a situation where a number of persons are not able to find job in a particular season. It
occurs in case of agriculture, ice-cream factories, woollen factories etc.
Following measures may be suggested to reduce seasonal unemployment
 Promotion of multiple cropping, i.e. raising more than one crop on the same piece of land in a
year.
 Development of activities allied to agriculture such as animal husbandry, dairy farming,
horticulture etc to provide extra employment throughout the year.
 Public investment in rural areas in such fields as irrigation, drainage, flood control, land and
environment, improvement of rural roads, schools, hospitals etc.
 Promotion of on-farm investment. Overhaul of machinery, training of farm labour and
programmes for eradication of illiteracy during slack seasons.
 Mechanisation of peak season activities so that a proportion of the labour force is
permanently shifted from agriculture to non-seasonal activities and surplus labour in the slack
season is reduced.
 Establishment of a variety of industries which operate at different times of the year so that
labour may be kept employed almost throughout the year by shifting from one seasonal
industry to another.
Question 50.
Briefly explain the various adverse effects of unemployment.
Answer:
The effects are explained below
(i) Economic effects: The various adverse effects belonging to this category are explained below
 Loss of output: Unemployment is basically underutilisation of the human resources of the

country leading to loss of output.
 Loss of human resources: Unemployment is a situation in which the productive capacity of
able and willing persons is wasted.
 Low productivity: Unemployment increases the dependence on agriculture and this results in
low productivity per labour employed.
 Low rate of capital formation: Due to unemployment, the income levels are low, resulting in
low rate of capital transformation.
(ii) Social effects: There effects are as follows
 Rise in poverty: With increase in unemployment, the level of poverty in the country also rises.
 Increase in inequalities: Unemployment generates inequality in the distribution of income and
wealth, thus defying the objective of social justice.
 Low standard of living: Unemployment affects the income of an individual adversely and
leads to a fall in his standard of living.
 Social unrest: An unemployed person creates social unrest by indulging in anti-social
activities such as theft, kidnapping etc.
 Results in depression: An unemployed person considers himself unwanted and useless, and
suffers from depression.
Question 51.
Discuss the various causes of unemployment in India.
Answer:
The causes of unemployment in India are given below
 Slow economic growth In Indian economy, the rate of economic growth is very slow. This
slow growth rate fails to provide enough employment opportunities to the rising population.
 Rapid growth of population Constant increase in population has been a grave problem of
India. It is one of the main causes of unemployment.
 Faulty employment planning The Five Year Plans in India have not been designed for
employment generation.
 Excessive use of foreign technology There is lack of scientific and technical research in India
due to its high cost. This has resulted in excessive use of foreign technology which has led to
technical unemployment in our country.
Question 52.
How is unemployment different from underemployment? How is unemployment measured in India?
Answer:
Unemployment is a situation in which people are willing to work and capable to work, but still they
are not getting work. Underemployment, on the other hand, is a situation in which an individual is
working much below his potential. As per 27th round of NSSO, three types of estimates are available
 Usual status unemployment: It is measured in number of persons who remained unemployed

for a major part of the year.
 Weekly status unemployment: It is measured in number of persons who did not find any work
even for an hour during the week preceding the survey week.
 Daily status unemployment: Daily status unemployment is measured in terms of number of
man days a person was not getting work on a day during the week proceeding the survey
week.
Out of these three, the daily status unemployment concept is most appropriate because it takes into
consideration both open and under employment. Unemployment Rate by Daily Status
(Daily status unemployment ÷ number of man days available)×100
Question 53.
Explain how unemployment problem can be solved in India?
Answer:
Following are the measures to solve the unemployment problem
 The government should try to control the population, so that the number of new entrants to
the workforce can be reduced.
 The education system of India need to be reformed to address the problem of unemployment.
The emphasis in education should shift from theory to practical.
 Agricultural activities should be diversified into fisheries, cattle rearing, horticulture etc to
generate income and employment opportunities.
 The government should take necessary steps to develop cottage and small industries, both in
the rural as well as urban areas. These industries are labour intensive and employ more
labour, per unit of capital.
Question 1.
Employment can be classified as which of the following?
1. Specialised employment
2. Temporary employment
3. Wage employment
4. Self-employment
5. Term employment Codes
(a) Both 1 and 2
(b) Both 2 and 3
(c) Both 3 and 4
(d) Both 4 and 5
Answer:
(c) Both 3 and 4
Question 2.
How worker population ratio is to be calculated?
(a) Worker Population Ratio = (Total Number of Workers Total Population) × 100
(b) Worker Population Ratio = (Total Population Total Number of Workers) × 100
(c) Worker Population Ratio = (Total Number of Workers + Total Dependent Population) × 100
(d) Worker Population Ratio = (Total Number of Workers Total Independent Population) × 100
Answer:
(a) Worker Population Ratio = (Total Number of Workers Total Population) × 100
Question 3.
A situation wherein the worker is willing to work and has the necessary ability to work, yet he does
not get work and remains unemployed for full time is refers to (
(a) absolute unemployment
(b) disguised unemployment
(c) open unemployment
(d) seasonal unemployment
Answer:
(c) open unemployment
Question 4.
A situation in which an extra input of labour generates no additional output. This situation refers to
which type of unemployment?
(a) Occasional unemployment
(b) Disguised unemployment
(c) Open unemployment
(d) Seasonal unemployment
Answer:
(b) Disguised unemployment
Question 5.
Workers of informal sector includes
1. Doctor, Engineer and Professionals
2. Farmers
3. Agricultural labourers
4. Non-farm casual wage labourers
5. A Central Government employee
6. People working in small enterprises Codes
(a) 1, 5 and 6
(b) 2, 3, 4 and 6
(c) 1, 2, 3 and 4
(d) 2, 3, 4, 5 and 6
Answer:
(b) 2, 3, 4 and 6
Hint:
Informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and
people working in those enterprises as also the self-employed who do not have any hired workers. It
also includes all non-farm casual wage labourers who work for more than one employer such as
construction workers and headload workers.
Question 6.
Which sector of worker enjoys more benefit?
(a) Formal
(b) Informal
(c) Casual
Answer:
(a) Formal
Hint:
Those who are working in the formal sector earn more than those in the informal sector. They have
more benefits like maternity benefit, provident fund, gratuity and pension.
Question 7.
Find the odd one out.
1. Owner of a school
2. Cashier in a bank
3. An accountant in a company
4. Teacher in a school
5. Salesman in company
6. Construction worker Codes
(a) 3, 4 and 1
(b) 2, 3 and 5
(c) Only 1
(d) 3, 4 and 6
Answer:
(c) Only 1
Hint:
Owner of a school is the odd one out as he is self-employed and the rests are salaried employee or
render their services to others in exchange of rewards in the form of salaries or wages.
Question 8.
If in a country out of 130 crore population, 78 crore are not working. Find the worker population ratio.
(a) 60%
(b) 52%
(c) 78%
(d) 40%
Answer:
(d) 40%
Question 9.
Income earned by a smuggler is a part of
(a) domestic income
(b) foreign income
(c) illegal income
Answer:
(c) illegal income
Question 10.
Without generating employment, we have been able to produce more goods and services. Scholars
refer to this phenomenon as
(a) unemployment growth
(b) workless growth
(c) workers growth
(d) jobless growth
Answer:
(d) jobless growth
Question 11.
An establishment with 6 hired workers is known as
(a) private sector establishments
(b) public sector establishments
(c) formal sector establishments
(d) informal sector establishments
Answer:
(d) informal sector establishments
Hint:
All the public sector establishments and those private sector establishments which employ less than
10 hired workers are called informal sector establishments.
Question 12.
Which sector of Indian economy provides highest employment?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Government sector
Answer:
(a) Primary sector
Hint:
In India, primary sector is providing employment to more than 50% working population. Primary
sector includes agriculture, forestry, fishing and mining.
Chapter-8 Infrastructure
Question 1.
What are the infrastructural needs of a developing economy?
Answer:
For a developing economy, social infrastructure like education, health, housing and sanitation, and
economic infrastructure related to banking and finance are important.
Question 2.
State the components of economic infrastructure which affect access to healthcare.
Answer:
Infrastructure related to transport and communication affect access to healthcare.
Question 3.
What is the meaning of the word morbidity?
Answer:
Morbidity means the tendency to fall ill.
Question 4.
State any two components of social infrastructure.
Answer:
Two components of social infrastructure are health and education.
Question 5.
What does an infrastructure provides?
Answer:
Infrastructure provides supporting services for agricultural and industrial production and for domestic
and foreign trade and commerce.
Question 6.
State any one importance of infrastructure.
Answer:
It helps in increasing the productivity of factors of production.
Question 7.
Enumerate the changes that are observed in the composition of infrastructure requirements as the
economy develops.
Answer:
In any country, as the income rises, the composition of infrastructure requirements changes
significantly. For low-income countries, basic infrastructure services like irrigation, transport and
power are most important. As economies develop, most of their basic consumption demands are met.
The share of agriculture in the economy shrink and more service-related infrastructure is required.
That is why, the share of power, hotel and banking, telecommunication etc is greater in high income
countries.
Question 8.
Explain how economic growth can become a dynamic process and a self-propelling activity of
change?
Answer:
Availability of proper means of transport and communication, ample sources of energy and a
developed system of banking and finance generate an environment of inter-industrial linkages.
In this situation, expansion of one industry facilitates the expansion of the other. Accordingly, growth
becomes a dynamic process and a self-propelling activity of change.
Question 9.
Explain the term ‘infrastructure’, (NCERT)
Answer:
Infrastructure refers to the supporting services in the main areas of industrial and agricultural
production, domestic and foreign trade and commerce. These services include roads, railways, ports,
airports, dams, power stations, oil and gas pipelines, telecommunication, schools and colleges,
hospitals, sanitary system and also the monetary system including banks, insurance and other financial
institutions. Infrastructure provides support system to economic and social development.
Question 10.
Explain how infrastructure impacts productivity and induces investment?
Answer:
Impact on productivity Infrastructure plays a major role in the raising the productivity of primary,
secondary and tertiary sector. Productivity of primary sector has increased due to the provision of
better irrigation facilities. Productivity of secondary sector has increased because of development in
energy sector and tertiary sector has benefitted by changes in transportation and communication
sector. Induces investment A well-developed infrastructure attracts foreign investors. Thus,
infrastructure induces investment and increases profitability.
Question 11.
Differentiate between social and economic infrastructure.
Answer:
Difference between social and economic infrastructure
Social Infrastructure Economic Infrastructure

It helps the economic system from outside, (i.e. indirectly) It helps the economic system from inside, (i.e. direc
It improves the quality of human resources. It improves the quality of economic resources.
Expenditure on it will raise the stock of human capital over time. Expenditure on it will raise the stock of physical cap
For example, health, education and housing. For example, energy, transport and communication.
Question 12.
What is the state of rural infrastructure in India? (NCERT)
Answer:
State of infrastructure in rural India can be understood from the following points
 Inspite of the technological progress, women of rural India are still using bio-fuels to meet
their daily energy requirements. About 90% of the rural households use bio-fuels for cooking.
 The Census 2001 shows that in rural India, only 56% households have an electricity
connection and 43% still use kerosene.
 Tap water availability is limited to only 24% rural households. About 76% of the population
drinks water from open resources such as wells, ponds etc. Women go long distances to fetch
water for their basic needs.
 Access to improved sanitation in rural areas was only 20%.
Question 13.
Explain the two categories into which infrastructure is divided. How are both interdependent?
(NCERT)
Answer:
Infrastructure is broadly categorised into:
(i) Social infrastructure: It refers to the core elements of society which serve as a foundation for the
process of social development of a country. It contributes to economic processes indirectly and from
outside the system of production and distribution, e.g. Educational institutions, hospitals, sanitary
conditions, housing facilities etc. Social infrastructure promotes social well-being.
(ii) Economic infrastructure: It refers to all such elements of economic change which serve as a
foundation for the process of economic growth. They help in the process of production directly, e.g.
Transportation, communication, energy/ power etc. Quality of economic infrastructure can be
improved by improving social infrastructure. Thus, these infrastructures support each other. Hence,
they both are interdependent.
Question 14.
How do infrastructure facilities boost production? (NCERT)
Answer:
Infrastructural facilities increase production of a country both by increasing the productivity of the
factors of production and improving the quality of life of its people.
Infrastructure plays a major role in raising the productivity in all the three sectors, viz. primary,
secondary and the ternary sector.
 Productivity in primary sector is increased because irrigation facilities have reduced the
dependence on monsoons.
 Productivity in the secondary sector has increased due to the improvements made in the
energy sector.
 Productivity in the tertiary sector has increased due to the improvements made in the means
of transportation and communication.
Also, social infrastructure increases the quality of life of workers, thereby increasing their efficiency.
Healthcare centres, educational institutions and other such facilities develop the skills of the workers,
which increases their ability and efficiency to work. Thus, we can conclude that infrastructure boosts
production.
Question 15.
Infrastructure contributes to the economic development of a country. Do you agree? Explain.
(NCERT)
Answer:
Infrastructure and economic development go hand-in-hand. Infrastructure contributes to the economic
development of a country in the following ways
 Impact on productivity Infrastructure plays a major role in the raising productivity of all the
three sectors, viz. primary, secondary and the tertiary sector.
 Induces investment Infrastmcture induces investment. A well developed infrastmcture attracts
foreign investors which opens new investment avenues and gives birth to profitable ventures.
 Generates linkages in production Getter means of transport and communication and a robust
system of banking and finance generates better inter-industrial linkages. It is a situation when
expansion of one industry facilitates the expansion of the other.
 Enhances size of the market Infrastructure enhances the size of the market by providing better
transportation and warehousing facilities. These facilities enable large scale production of
goods and services which further help a business to capture more markets.
 Enhances ability to work Social infrastructure improves the quality of life of workers, thereby
increasing their efficiency. Healthcare centres, educational institutions and other such
facilities develop the skills of the workers, which increases their ability and efficiency to
work.
 Facilitates outsourcing India is emerging to be a global destination for all kinds of
outsourcing. For example, call centres, study centres, medical transcription and such other
services, owing largely to its sound system of social and economic infrastructure.
Question 16.
Investors are reluctant to invest in tidal energy projects. Why?
Answer:
Tidal energy has high capital cost i.e., installation cost. As a result, a tidal power sheme may not
produce returns for years. Thus, investors are reluctant to invest in much projects.
Question 17.
Why are State Electricity Boards (SEBs) suffering losses?
Answer:
SEBs suffer losses due to transmission and distribution, theft of electricity, wrong pricing of
electricity and other inefficiencies. The distribution of free electricity to farmers is another reason for
their losses.
Question 18.
Enumerate the various non-commercial sources of energy.
Answer:
The sources of energy that are usually available free of cost from nature, are referred to as non-
commercial sources of energy. For example, firewood, agricultural waste and dried dung.
Question 19.
State the types of conventional sources of energy.
Answer:
There are two types of conventional sources of energy These are as follows
 Commercial Sources
 Non-commercial Sources
Question 20.
Which sector is the largest consumer of commercial energy?
Answer:
The industrial sector is the largest consumer of commercial energy.
Question 21.
Which is the most important source of electricity generation in India?
Answer:
Thermal sources are the most important for electricity generation in India.
Question 22.
Explain the importance of natural gas as a new resource?
Answer:
Natural gas is a commercial source of energy. Liquified gas is used as cooking gas. It is also used in
thermal plants as fuel. Natural gas is likely to play a major role in bridging the gap between demand
and supply of liquid hydrocarbon in future. At present, it is being used as a feed stock for core sector
industries like fertilisers.
Question 23.
Describe three sources of energy which are mostly used in India for commercial purposes in factories.
Answer:
The three sources of energy mostly used in India for commercial purposes in factories are
 Electricity: It is the most useful and convenient source of energy in India. There are three
main sources of electricity i.e., thermal, hydro and atomic power.
 Petroleum: It is one of the important source of energy in India. India produces about 3 lakh
tonnes of petrol against the demand of 34 lakh tonnes. The country imports 31 lakh tonnes.
 Coal: It is primary source of energy and accounts for 54% of total energy consumption.
Question 24.
Explain the importance of grid for transmission of electricity.
Answer:
Primary sources for electricity power are unevenly distributed and the generation plants are also
unevenly located. Thus, bulky transmission of electric power over long distances becomes necessary.
We require grid to synchronise power generation with transmission and distribution of electricity.
Grid facilitates economising and increasing reliability. Grid avoids overloading of transmission lines,
frequent breakdowns and loss of surplus power.
Question 25.
Can non-conventional energy be developed in future?
Answer:
In the recent past, the Government of India has accorded high priority to the development of non-
conventional energy sources which include biogas, solar energy, wind energy, geo-thermal energy,
etc. Efforts are being made to develop technology to use non-conventional energy.
There are about 210 sites where wind can be used for generating electricity. Solar energy is also being
used through the use of solar cooker. Tidal energy can also be used to generate electricity.
Question 26.
What are the three basic sources of generating power? (NCERT)
Answer:
The three basic sources of generating power are
 Thermal power like coal.

 Hydel (Hydro) and wind power.
 Nuclear power or atomic energy.
Question 27.
What do you mean by transmission and distribution losses? How can they be reduced? (NCERT)
Answer:
Transmission and distribution losses refer to the losses that occur in transmission of electricity
between the sources of supply and points of distribution. These losses occur due to the inherent
resistance and transformation inefficiencies in the electrical conductors (conducting wires, etc) and
distribution transformers respectively. In most of the states of our country, it is more than 20%. These
losses can be reduced by using high quality wires of appropriate resistance and proper positioning of
transformers.
Question 28.
How are the rates of consumption of energy and economic growth connected? (NCERT)
Answer:
Rate of consumption of energy is directly related to the rate of economic growth as studies have
revealed that in order to have 8% GDP growth rate per annum, power supply needs to grow at around
12% annually. This reveals that the demand for power is higher than the GDP growth rate.
Question 29.
What do you understand by primary and secondary sources of energy?
Answer:
Primary sources They are the sources which do not require any transformation before their use. They
are directly used e.g., coal, lignite, petroleum, gas, etc. Secondary sources The sources which involve
transformation process before final use are referred to secondary sources e.g. transforming inputs of
coal energy into electricity.
Question 30.
Why is nuclear power considered to be the best option?
Answer:
Nuclear power is best option for generating electric power. This can be stated from the following
points
 Nuclear energy plants produce electricity through the fission of uranium and not through
burning of fuels. Consequently, nuclear power plants do not pollute the air with nitrogen
oxides, sulphur oxides, dust or greenhouse gases like carbon dioxide.
 Although, the radioactive wastes produced by . nuclear energy may be dangerous for
thousands of years, part of the waste caused by the burning of coal remains dangerous
forever.
Question 31.
Why is it important to save electricity?
Answer:
It is important to save electricity because of the reasons enumerated below
 Saving electricity helps to save money.

 Saving electricity is important for environment conservation.
 A large percentage of electricity is generated by using non-renewable sources of energy. If we
continue to waste it, without employing proper conservation methods, then we will exhaust
these sources in near future.
 Reducing electrical usage will result in less carbon dioxide being released in the atmosphere.
Question 32.
India is dependent upon other countries for petroleum products. What are the drawbacks of this trend?
Answer:
Rising imports of crude and petroleum products has led to a severe problem in balance of payments.
On the other hand, the costs and prices of a wide range of goods have increased due to global inflation
in oil. Inspite of stringent monetary and fiscal controls, the wholesale price index in India has been
continuously rising. With such high reliance on imported energy products, a significant proportion of
the export earnings, which otherwise could be channelled into productive domestic investments, is
used to meet expenditure on these imported products. Therefore, India’s dependence on foreign
countries for crude and petroleum products is a negative feature of our energy sector.
Question 33.
State the three services needed in supply of electricity. Should they be in different hands?
Answer:
Following are three services needed in supply of electricity
 Generation of electricity
 Transmission of electricity
 Distribution of electricity
All these services should be in different hands. Transmission of electricity should be in the hands of
the government. The government and private sector may operate in the areas of generation of
electricity and distribution of electricity. It would bring more and more financial resources in power
sector as well as promote competition.
Question 34.
Explain briefly the various commercial sources of energy.
Answer:
The important commercial sources of energy are discussed below:
(i) Coal: It is the most important source of commercial energy. Around 54% of the commercial energy
consumed 55% and of total energy consumed has its origin in coal. The important consumers of coal
in India are thermal power stations, steel plants, brick-kilns, railways, cement factory, etc, and Coal
India Ltd and Singrani Coal Company are the two main producers of coal in India.
The quality of Indian coal is not good, therefor India also has to import coal from other countries.
Also, given the present rate of consumption, it is feared that India will use up its coal reserves in 125
years. Also, it should be remembered that the consumption of coal for commercial purposes has risen
while that for non-commercial purposes has fallen.
(ii) Petroleum: It is also an important source of energy in India. India has to import petrol because its
reserves are not enough to meet its ever increasing demand. About 30 % of India’s imports account
for petroleum and petroleum products.
(iii) Natural Gas: It is another important source of conventional energy. It is used as cooking gas in
households (LPG) and as a raw material in fertilisers and petroleum products. Now-a-days, it is also
used as a fuel (CNG) in cars and three-wheelers.
(iv) Electricity: This is the most important source of commercial energy.
Question 35.
Discuss in brief the various non-conventional sources of energy.
Answer:
The various non-conventional sources of energy are explained below
(i) Solar energy It is generated by using solar power (power of sun). It is used in the following two
ways
 Solar thermal programme in which solar energy is used directly for heating water, cooking
food, etc.
 Solar photovoltaic programme in which photovoltaic cells convert solar energy into
electricity.
(ii) Wind energy It is generated by using wind power. A large wind turbine usually consisting of
propellers is connected to a generator to generate electricity. India is the fifth largest producer of wind
energy.
(iii) Tidal energy It is produced through the use of tidal energy generators. These large under water
turbines are placed in areas with high tidal movements in order to produce electricity. With its vast
coastline, India has tremendous scope to produce this form of energy.
(iv) Atomic energy atomic energy is generated by conducting fission reactions in a controlled
environment. These reactions emit a lot of heat which drives turbine generators to produce electricity.
Nuclear or atomic energy in India is generated in 21 nuclear reactors in operation in 7 nuclear power
plants. The first nuclear energy centre was established in Tarapur in 1969.
(v) Bio-energy This energy is generated by using cow-dung, agricultural wastes and other biological
materials. There are two forms of bio-energy which are given below
 Biogas plants are set up and are fed with cow-dung and other organic waste. The fermentation
process generates gas which is used for cooking, lighting etc.
 Biomass Solid fuel is produced by converting agricultural wastes to pillets and briqullets.
Question 36.
Distinguish between conventional and non-conventional sources of energy.
Answer:
Conventional Sources of Energy Non-conventional Sources of Energy
These are the traditional sources of energy which are
These are modern sources of energy.
generally bought and sold in the market.
In India, conventional sources are being used in total These are being developed as sources of
disregard to the environment i.e., these sources create commercial energy with a view to check
pollution. environmental pollution.
Consumers have to pay a price for energy generated Consumers do not have to pay a price for energy
through these sources. generated through these sources.
These sources of energy are exhaustible. These sources of energy are renewable.
These sources are used by business. These sources are generally used by households.
Coal, petroleum and electricity are examples of Firewood and cow-dung are examples of non-
commercial sources of energy. commercial sources of energy.
Differences between conventional and non-conventional sources of energy:
Question 37.
What is the significance of energy? Differentiate between commercial and non-commercial sources,
NCERT
Answer:
Energy is essential for all the three sectors, viz. primary, secondary and tertiary sector. It is a critical
aspect of the development process of nation. It is also required in houses for cooking, household
lighting, heating, etc.
The differences between commercial and non- commercial sources of energy are:
Commercial Sources of Energy Non-commercial Sources of Energy

Consumers have to pay a price for energy generated Consumers do not have to pay a price for energy generated
through these sources. through these sources.
These sources of energy are exhaustible. These sources of energy are renewable.
These sources are used by business. These sources are generally used by households.
Coal, petroleum and electricity are examples of Firewood and cow-dung are examples of non-commercial
commercial sources of energy. sources of energy.
Question 38.
Justify that energy crisis can be overcome with the use of renewable sources of energy. (NCERT)
Answer:
The energy crisis in India is the result of excessive use of non-renewable sources of energy for present
consumption which has created a threat for sustainable development of the country. The conventional
sources of energy, especially the commercial sources are generally exhaustible (except hydro-power).
There are three sources of energy which are commonly termed as non-conventional sources i.e., solar
energy, wind energy and tidal power, which can be used to solve the problem of energy crisis. India,
being a tropical country, has almost unlimited potential for producing all three types of energy.
Some appropriate cost effective technologies are already available which can be used to produce
energy from these sources. Research should be carried out for developing even cheaper technologies
which would make the production from renewable sources of energy feasible and more beneficial.
This will solve the problem of exhausting all sources of energy and will preserve resources for future
generations to come.
Question 39.
What problems are being faced by the power sector in India? (NCERT)
Answer:
Some of the problems being faced by India’s power sector are:
 At present, India is able to add only 20000 MW a year. India’s installed capacity to generate
electricity is not sufficient to feed an annual economic growth of 7-8% and even this capacity
remains under-utilised due to inefficient operation of plants.
 State Electricity Boards (SEBs), which distribute electricity, incur losses exceeding 500
billion, due to transmission and distribution losses, wrong pricing of electricity and other
inefficiencies.
 Electricity is stolen in different areas and tariffs are not paid which also adds to the losses of
SEBs.
 Private sector power generators and foreign investors are not yet ready to enter the power
generation sector in a major way, which has placed the responsibility largely on public sector
which is under financial pressure.
 There is general public unrest due to-high power tariffs and prolonged power cuts in different
parts of the country.
 Thermal power plants which have the greatest share in India’s power sector, are facing
shortage of raw material and coal supplies.
Question 40.
Discuss the reforms which have been initiated recently to meet the energy crisis in India. (NCERT)
Answer:
The following reforms have been initiated by the government to meet the energy crisis:
 Privatisation in power generation Power generation sector has been opened up for private
sector, and the government monopoly in the generation and distribution of electricity has been
eliminated to gain competitive efficiency.
 Privatisation in power transmission and distribution The Indian Government has approved
private companies like Tata Power and Reliance Energy alongwith Power Grid Corporation
of India for constructing transmission networks and to look after distribution of power supply
in certain states.
 Regulatory mechanism The Central Electricity Regulatory Commission (CERC) alongwith
State Electricity Regulatory Commission (SERC) has been established in 19 states under the
Electricity Regulatory Commission Act, 1998 to regulate tariff and to promote efficiency and
competition.
 Rationalisation of tariff Tariff rates have been revised upwards to discourage wasteful
consumption of power and bring down the losses of SEBs.
 Accelarated Power Development and Reform Programme (APDRP) It was initiated in the
year 2000-01 with the objectives of improving financial viability, reducing transmission and
distribution losses and promoting transparency through computerisation.
 Creating awareness Government is trying to create awareness among public towards
conservation of energy. Various programmes like National Energy Efficiency Programme
(NEEP) that aimed at conservation of petroleum products, have been initiated. Use of non-
conventional sources of energy like solar energy is being popularised
Question 41.
Name two NGOs which are working in the area of healthcare.
Answer:
SEWA in Ahmedabad and ACCORD in Nilgiris are the NGOs working in the area of healthcare.
Question 42.
Child sex ratio in India improved since 1991. Why?
Answer:
The improvement in child sex ratio in India is due to the measures taken by the government to ban
sex-determination tests and female foeticide.
Question 43.
Name the states which are lagging behind in healthcare system.
Answer:
States which are lagging behind in healthcare are Bihar, Madhya Pradesh, Rajasthan and Uttar
Pradesh.
Question 44.
Health is an important component of social infrastructure. What does health infrastructure include?
Answer:
Health infrastructure includes hospitals, doctors, nurses and other para-medical professionals, beds,
equipment required in hospitals and a well developed pharmaceutical industry.
Question 45.
What is a ‘global burden of disease’? (NCERT)
Answer:
Global Burden of Disease (GBD) is an indicator used by experts to know the number of people dying
prematurely due to a particular disease, as well as the number of years spent by them in a state of
‘disability’ owing to the disease.
Question 46.
Who is an Auxiliary Nursing Midwife?
Answer:
An Auxiliary Nursing Midwife is the first person who provides primary healthcare in primary health
centres, community health centres and sub centres.
Question 47.
State the components of AYUSH.
Answer:
Ayurveda, Yoga, Unani, Siddha, Naturopathy and Homeopathy.
Question 48.
Explain the reasons of Medical Tourism in India.
Answer:
Medical tourists come to India to avail our health services which combine latest medical technologies
with qualified professionals and are cheaper for foreigners as compared to costs of similar healthcare
services in their own countries. They come for surgeries, liver transplants, dental. In the year 2004-05,
as many as 1,50,000 foreigners visited India for medical treatment.
Question 49.
Explain how medical costs push down 2.2% of the population below the poverty line each year?
Answer:
Public health facilities are highly inadequate in our country. These facilities are also lacking in
quality. So even poor and middle-class people do not prefer to use these facilities. So, in case of a
medical emergency, they are forced to avail expensive services of private hospitals and health centres.
These expenses prove to be a heavy burden on these families and they are forced to sell whatever
valuables they have, to fund the treatment. This pushes the families below poverty line.
Question 50.
Discuss how regional inequalities exists in health infrastructure in India.
Answer:
The development of health infrastructure has shown gender, income and regional biasness in India.
Rural areas do not have access to or cannot afford medical care. Even though majority of population
lives in rural areas, only one-fifth of India’s hospitals are located in rural areas with only half the
number of dispensaries. Out of 6.3 lakh beds, roughly 30% of them are available in rural areas. The
PHCs in rural areas do not offer basic medical care like A-ray or blood testing devices.
In rural areas, the percentage of people who have no access to proper aid has risen from 15 in 1986 to
24 in 2003. States like Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh are relatively lagging
behind in health care facilities.
Question 51.
State the components of Primary Healthcare in India.
Answer:
Primary Healthcare: Primary healthcare system in India includes
 Education concerning prevailing health problems and methods of identifying, preventing and
controlling them.
 Promotion of food supply and proper nutrition and adequate supply of water and basic
sanitation.
 Maternal and child healthcare.
 Immunisation against major infectious diseases and injuries.
 Promotion of health and provision of essential drugs.
Question 52.
What are the main characteristics of health of the people of our country? (NCERT)
Answer:
A country’s health sector contributes towards improving the well being of citizens and can be
assessed with the help of the following key indicators:
(i) Expectancy of life: It means the number of years a normal person is expected to live at birth. A
high expectancy means that health sector is quite advanced in the country. In India, expectancy of life
has risen considerably from 50 years in 1951 to 68.5 years presently. Also, life expectancy for males
is 67.3 years and for females it is 69.8 years. This indicates that healthcare facilities have developed in
our country. However, we have to still achieve the global average of 71 years.
(ii) Death rate: It is the number of deaths per thousand persons. A low death rate is good indicator of
improvement in health services. Death rate in India has improved significantly from 27.4 per thousand
in 1951 to 7.6 per thousand in 2015.
(iii) Infant mortality rate: It gives the number of deaths of infants below the age of one year as a
percentage of number of live births per thousand. A low infant mortality rate signifies better
healthcare for the mother and the child. In India, infant mortality rate has fallen significantly from 146
to 40 per thousand.
(iv) Incidence of deadly diseases: If the spread of deadly diseases such as TB (tuberculosis), cancer is
conuoiled then also it signifies a developed health sector. While the spread of TB, HIV/AIDS and
malaria is declining globally, India is still seeing a disturbingly high number of deaths related to these
diseases. In 2013, 5.5 lakh people died of TB, 1.2 lakh Indians died of malaria and 78,600 Indians
died of HIV/AIDS. 11 deaths per lakh population in India are still reported from a deadly disease,
while in our neighbouring countries, it is one or two deaths per lakh population.
(v) Nutrition levels: If the population of the country has access to nutritious and healthy food, then it
is also a good indication of the health of the country.
This is an area of concern for India. The World Bank estimates that India is one of the highest ranking
countries in the world for the number of children suffering from malnutrition. The 2015 Global
Hunger Index (CHI) Report ranked India 20th amongst leading countries with a serious hunger
situation. In India, 44% of children under the age of 5 years are underweight. 72% infants and 52%
married women have anaemia. All this indicate towards an unhealthy nation.
Question 53.
Discuss the main drawbacks of our healthcare system. (NCERT)
Answer:
The main drawbacks of our healthcare system are as follows
 Expenditure on health sector is 4.2% of total expenditure from budgets of all states. This is
low as compared to other countries, both developed and developing.
 Healthcare system in India is not well equipped to fight against AIDS.
 At present, less than 20% of the population utilises public health facilities.
 According to a study, only 38% of the PHCs have the required number of doctors and only
30% of the PHCs have sufficient stock of medicines.
 The PHCs located in rural areas do not offer even X-ray or blood testing facilities.
 Villagers have no access to any specialised medical care like paediatrics, gynaecology,
anaesthesia and obstetrics.
Question 54.
How has women’s health become a matter of concern? (NCERT)
Answer:
Women constitute about half the total population in India. They suffer from many disadvantages as
compared to men in the areas of education, participation in economic activities and healthcare.
There is growing incidence of female foeticide in the country which is the cause of deterioration of
child sex ratio from 927 in 2001 to 914 in 2011. Close to 3,00,000 girls under the age of 15 are not
only married but have already borne child, at least once.
More than 50% of married women between the age group of 15 and 49 years suffer from anaemia
caused by iron deficiency. It has contributed to 19% of maternal deaths. Abortions are major cause of
maternal morbidity and mortality in India. All these statistics present a grim picture of women health
in India and are a cause of concern.
Because of poor health, women in rural areas specially, are not able to work and supplement their low
family income. Women’s health also becomes important because only a healthy mother can give birth
to a healthy child, which will also reduce the risk of maternal deaths.
Question 55.
Describe the meaning of public health. Discuss the major public health measures undertaken by the
state in recent years to control diseases. (NCERT)
Answer:
The science and practice of protecting and improving the health of a community, as by preventive
medicine, health education, control of communicable diseases, application of sanitary measures and
monitoring of environmental hazards, is called public health. In the recent years, government has built
up a vast health infrastructure equipped with trained manpower at different levels.
The following measures have been initiated by the state in recent years to promote public health:
 Establishing healthcare institutions
 Expanding the health facilities
 Expanding the facilities for medical education.
 Promoting preventing medicine.
All these measures have helped to control diseases like small pox, malaria, TB etc.
Question 56.
Differentiate the six systems of Indian medicine. (NCERT)
Answer:
The six systems of Indian medicine can be differentiated from the points below:
(i) Ayurveda: Atharvaveda, the last of the four great bodies of knowledge known as Vedas, contains
114 hymns related to formulations for the treatment of different diseases. The Ayurvedic practitioners
recommend diet and lifestyle changes alongwith drug therapy. The methods of Ayurveda such as
applying herbs and massage can simultaneously be used alongwith other systems.
(ii) Yoga: It is being practised in India from thousands of years. It has references in Upanishads and
Puranas composed by Aryans in the Vedic period. The main credit for systematising Yoga goes to
Patanjali who wrote ‘Yoga Sutra’ which is the most important and basic text on Yoga. Yoga is
defined as an art of righteous living or an integrated system for the benefit of the body, mind and
inner spirit.
(iii) Unani: This also means ‘Greek medicine’, and is a form of traditional medicine widely practised
in South Asia. Unani medicine is based on the concept of the four humours, Phlegm, Blood, Yellow
bile and Black bile. Unani medicine first arrived in India with establishment of Delhi Sultanate (1206-
1527 CE) and muslim rule over North India and subsequently flourished under Mughal empire.
(iv) Siddha: It comes from the word siddhi which means an object to attain perfection or heaven.
Siddhi is attained through meditation which cures mental illness and promotes mental, emotional and
physical well-being.
(v) Naturopathy: It heals with the power of nature as it assumes that all healing powers are within our
body. It uses the inbuilt immune system of the human body for curing. Naturopathy regards that we
fall ill only when we go against nature. An ailing body can purify and recover itself with thorough rest
and fasting or having natural diet which helps in healing.
(vi) Homeopathy: It consists of two words ‘homeo1 meaning similar and ‘pathos’ meaning suffering.
In this system, a drug and a disease that produces similar symptoms are believed to be having a
neutralising effect on each other. Thus, the homeopathic treatment is based on symptoms the body is
showing and medication is given accordingly. It is popular among the people due to its remarkable
healing capacity. Also, its remedies are free from side effects.
Question 57.
How can we increase the effectiveness of healthcare programmes? (NCERT)
Answer:
We can increase the effectiveness of healthcare programmes in the following manner:
 The wide gap between rural and urban areas, poor and rich in utilising healthcare facilities
must be addressed through more investment in health facilities in rural and backward areas by
the government as private investment is not forthcoming in these areas.
 Women’s health across the country should be taken into greater focus as a healthy mother
gives birth to a healthy offspring and health status of population can be improved.
 Regulated private sector health services, NGOs and community participation can improve the
effectiveness of healthcare facilities and play an important role in spreading health awareness.
 Indian system of medicine including Ayurveda and Naturopathy should be explored and used
to support public health as they are based on natural healing and are of preventive nature.
Question 1.
Infrastructure is the backbone of the economy. From the following, which of the services are provided
by the infrastructure to the economy?
(i) Power
(ii) Communication
(iii) Education
(iv) Transportation
(v) Health
(vi) Banking
(a) (i) (ii) (iv) (vi)
(b) (i) (iv) (v) (vi)
(c) (i) (iii) (iv) (vi)
(d) All of these
Answer:
(d) All of these
Hint:
Infrastructure refers to structures, systems and facilities securing in an economy. It provides power,
communication, banking, transportation, road, highways and social services, health, education,
sanitation, housing etc to the economy.
Question 2.
Traditionally, has been solely responsible for developing the country’s infrastructure.
(a) private sector
(b) households
(c) government
(d) foreign sector
Answer:
(c) government
Hint:
The government is a unit to administer all economic and social activities in the country and providing
and developing infrastructure in the country.
Question 3.
On an average, India invests of its GDP in the development of infrastructure presently.
(a) 5% to 10%
(b) 10% to 15%
(c) 15% to 20%
(d) 20% to 25%
Answer:
(a) 5% to 10%
Question 4.
Which sources of energy are bought and sold in the market and bear a price?
(a) Commercial sources
(b) Non-commercial sources
(c) Non-conventional sources
Answer:
(a) Commercial sources
Question 5.
Which city uses the solar energy on a large scale?
(a) Hyderabad
(b) Thane
(c) Lucknow
(d) Delhi
Answer:
(b) Thane
Question 6.
Which component has highest percentage in commercial energy consumption?
(a) Oil
(b) Natural gas
(c) Hydro energy
(d) Coal
Answer:
(d) Coal
Hint:
Commercial energy consumption includes coal with the largest share above 50%, followed by oil at
above 30%.
Question 7.
Hospitals and universities are the part of
(a) social infrastructure
(b) economic infrastructure
(c) political infrastructure
(d) legal infrastructure
Answer:
(a) social infrastructure
Hint:
Social infrastructure is a foundation of social development process of a country. It includes, hospitals,
universities, education, sanitation, housing, water supply etc.
Question 8.
Which of the two are the most important sources of electricity generation in India?
(a) Hydro electricity and nuclear electricity
(b) Nuclear electricity and thermal electricity
(c) Thermal electricity and hydro electricity
(d) Solar electricity and nuclear electricity
Answer:
(c) Thermal electricity and hydro electricity
Question 9.
In India, about 1/4th of total electricity generated is lost because of
(a) theft of electricity
(b) wrong pricing of electricity
(c) subsidies to farmers
(d) transmission and distribution losses
Answer:
(d) transmission and distribution losses
Hint:
In India, average transmission and distribution losses have been official indicating as 25% of total
electricity generated by state electricity boards.
Question 10.
Health infrastructure should be accessible to all the people easily. Health infrastructure includes
(a) hospitals, doctors and nurses
(b) para-medical professionals and pharmaceutical industry
(c) beds and equipments
Answer:
Hint:
Health infrastructure includes hospital, doctors, nurses and other para-medical professionals, beds,
equipment required in hospitals and as we developed pharmaceutical industry.
Question 11.
Approx 70% of the hospitals running in India belongs to
(a) private sector
(b) public sector
(c) foreign sector
Answer:
(a) private sector
Hint:
In recent time, private health infrastructure has grown largely. About 70% of the hospitals in india are
running by private sectorm e.g. Max and Apollo hospital.
Question 12.
In India, health infrastructure comprise
(a) public sector
(b) private sector
(c) external sector
Answer:
Hint:
The presence of health infrastructure is not enough but it should be accessible to all the people easily.
Therefore in India, health infrastructure facilities are provided by both public and private sector.
Chapter-9 Environment and sustainable development
Question 1.
State the important environmental issues which should receive our attention.
Answer:
The important environmental issues which should receive our attention are
 Land degradation
 Biodiversity loss
Question 2.
Why was the Central Pollution Control Board (CPCB) set up?
Answer:
In order to address three major environmental concerns in India, viz water, air and land pollution, the
government set up the Central Pollution Control Board (CPCB) in 1974.
Question 3.
What is meant by environment? (NCERT)
Answer:
Environment is defined as the total planetary inheritance or the totality of all resources. It includes all
the biotic (e.g., birds, animals, plants, forests, etc) and abiotic (e.g. water, Sun, land, mountains, etc)
factors that influence and depend upon each other.
Question 4.
What happens when the rate of resource extraction exceeds that of their regeneration? (NCERT)
Answer:
When the rate of resource extraction exceeds that of their regeneration, the environment will not be
able to sustain life.
Question 5.
State the two major environmental issues that the world is facing today.
Answer:
Global warming and ozone depletion.
Question 6.
What is the meaning of absorptive capacity?
Answer:
Absorptive capacity means the ability of the environment to absorb degradation.
Question 7.
What factors lead to environmental crisis?
Answer:
If the rate of extraction of resources is above the rate of their regeneration, then the environment will
not be able to sustain life and this results in environmental crisis.
Question 8.
What is global warming? Name any two greenhouse gases.
Answer:
The gradual increase in the average temperature of Earth’s lower atmosphere is called global
warming. Two greenhouse gases are carbon dioxide and methane.
Question 9.
Which conference resulted in an international agreement to sight global warming?
Answer:
A United Conference on climate change held in Tokyo, Japan in 1997 resulted in an international
agreement to sight global warming.
Question 10.
What is meant by ozone depletion?
Answer:
Ozone depletion refers to the phenomenon of reduction in the ozone layer in the stratosphere.
Question 11.
What is the meaning of biodiversity?
Answer:
Biodiversity is the variety of all life forms including animals and plants that can be found either in one
location or the whole planet.
Question 12.
Explain carrying capacity of environment.
Answer:
Carrying capacity of the environment may be defined as the amount of natural resources which can be
drawn from it and the maximum amount of pollutants that can be discharged without damaging it
seriously.
Question 13.
What are natural resources?
Answer:
Natural resources are the resources which have been provided by the nature in the form of land, air,
water, forests, animals, sunshine, etc. Natural resources are free gifts of nature. They are foundation of
the prosperity of a country. Natural resources may be of two types:
 Renewable natural resources

 Non-renewable natural resources
Question 14.
Explain the meaning of ‘affluence trap’.
Answer:
Affluence means economic well-being. Trap is something in which we get caught and we can not
escape out of it. Affluence trap means environmental degradation trap. With affluence or economic
well-being more natural resources are used up causing environmental problems.
In rich countries, high level of consumption associated with high level of income is using up natural
resources at a fast pace. As a consequence, these countries are getting trapped in a situation of severe
environmental degradation.
Question 15.
How does population growth leads to depletion of natural resources?
Answer:
Population growth is the cause of depletion of natural resources. More the number of people, more the
demand for goods and services needed to satisfy wants. As the population increases, more natural
resources are required to produce goods and services and also the demand for land for housing and
agriculture increases. Increasing population has led to more extraction of natural resources from the
environment thus resulting in depleting these resources.
Question 16.
‘India has abundant natural resources. Substantiate the statement. (NCERT)
Answer:
India has abundant natural resources in the terms of rich quality of soil, hundreds of rivers and
tributaries, lush green forests, plenty of mineral deposits, vast stretch of Indian Ocean, ranges of
mountains, etc. The black soil of the Deccan Plateau is suitable for cultivation of cotton.
The Indo-Gangetic plains are the most fertile regions in the world. India’s forests provide green cover
for its population and wild life. Large deposits of iron-ore, coal and natural gas are found in the
country.
Question 17.
How has the supply-demand relationship led to degradation of environment? (NCERT)
Answer:
Before the advent of industrial revolution, the rate of resource extraction was less than the rate of
regeneration of these resources, i.e. demand was less than supply. But with expanding population and
its growing needs, the demand for resources for both production and consumption went beyond the
rate of regeneration of the resources. This has resulted in a reversal of supply-demand relationship for
environmental resources as now there is very high demand for environmental resources and services,
but their supply is limited and even these limited resources are being overused and misused.
Question 18.
State the consequences of environmental crisis.
Answer:
If the rate of extraction of resources will be above the rate of their regeneration, then the environment
will not be able to sustain life and this results in environmental crisis.
The points given below describe the consequences of environmental crisis:
 Development has polluted and dried up rivers and other aquifers, making water an economic
good.
 Intensive and extensive excavation of both renewable and non-renewable resources has
exhausted some of the vital resources.
 Decline in air and water quality has resulted in increased number of respiratory and water
borne diseases.
Question 19.
The consequences of environmental crisis have increased the opportunity costs of negative
environmental impacts. How?
Answer:
Opportunity costs are the costs of the opportunities foregone. By choosing harmful environmental
practices, we have foregone such environmental practices which produce a positive effect on
environment. Such a choice has resulted in increasing the opportunity costs.
Question 20.
State the effects of ozone depletion.
Answer:
Different effects of ozone depletion are described below
 More ultraviolet radiation comes to Earth causing damage to living organisms, skin cancer in
humans and low production of phytoplankton affecting acquatic organisms.
 Influences the growth of terrestrial plants.
Question 21.
State the adverse effects of deforestation.
Answer:
The following are the adverse effects of deforestation
 It leads to soil erosion. According to an estimate, quantity of nutrients lost due to soil erosion
each year ranges from 5.8 to 8.4 million tonnes.
 The forests sustain all types of life forms. Destruction of these forests means losing the
various life forms sustained by these forests. According to an estimate, at least 1000 species
are lost in a year.
Question 22.
Briefly discuss the functions of Pollution Control Boards.
Answer:
Pollution control boards collect, collate and disseminate technical and statistical data relating to water,
air and land pollution. They lay down standards for sewage/trade effluent and emissions.These boards
provide technical assistance to governments in promoting cleanliness of streams and wells by
prevention, control and abatement of water pollution, and improve the quality of air and to prevent,
control or abate air pollution.
Question 23.
Population explosion and the advent of industrial revolution have resulted in environmental crisis.
Discuss.
Answer:
With population explosion and with the advent of industrial revolution, to meet the growing needs of
the expanding population, the demand for resources for both production and consumption went
beyond the rate of regeneration of the resources and the pressure on the absorptive capacity of the
environment increased tremendously. We are now faced with increased demand for environmental
resources and services but their supply is limited due to overuse and misuse. Hence, the
environmental issues of waste generation and pollution have become critical today.
Question 24.
Identify six factors contributing to land degradation in India. (NCERT)
Answer:
The factors responsible for land degradation in India are
 Loss of vegetation occurring due to deforestation.

 Unsustainable fuel, wood and fodder extraction.
 Shifting cultivation.
 Reduction of forest lands.
 Forest fires and overgrazing.
 Non-adoption of adequate soil conservation measures.
Question 25.
Is environmental crisis a recent phenomenon? If so, why? (NCERT)
Answer:
Yes, environmental crisis is a recent phenomenon. Environment was able to perform its functions
without any interruption till the resource extraction was not above the rate of regeneration of the
resource and the wastes generated were within the assimilating capacity of the environment. But
today, environment fails to perform its vital function of life sustenance resulting in an environmental
crisis. The rising population of the developing countries and the affluent consumption and production
standards of the developed world have placed a huge stress on the environment. Many resources have
become extinct and the wastes generated are beyond the absorptive capacity of the environment. As a
result, we are today at the threshold of environmental crisis.
Question 26.
Give two instances of (NCERT)
(a) Overuse of environmental resources.
(b) Misuse of environmental resources.
Answer:
(a) Two instances of overuse of environmental resources are
 Excess use of electricity leads to depletion of resources like coal and water from which
electricity is generated.
 Excess use of petrol and diesel in vehicles.
(b) Two instances of misuse of environmental resources are
 Soil degradation due to improper crop rotation and crop shifting.

 Drying up of rivers due to supply of water from them to dams and reservoirs.
Question 27.
Briefly discuss vehicle pollution and industrial pollution. (NCERT)
Answer:
(i) Vehicle pollution Vehicle emissions are of particular concern since these are ground level sources
and thus, have the maximum impact on the general pollution. The number of vehicles has increased
from 3 lakh in 1957 to 67 crores in 2003. In 2003, personal transport vehicles (two wheeled and cars
only) contributed about 80% of the total number of registered vehicles thus, contributing significantly
to air pollution.
(ii) Industrial pollution India is one of the ten most industrialised nations of the world. This status has
brought with it unwanted and unanticipated consequences like unplanned urbanisation, pollution and
the risk of accidents.
Question 28.
State any four pressing environmental concerns of India.
Answer:
Four pressing environmental concerns of India are
 Land degradation and solid waste management.

 Biodiversity loss.
 Air pollution with special reference to vehicular pollution in urban cities.
 Management of fresh water.
Question 29.
Air pollution contributes towards environmental crisis in India. Discuss.
Answer:
In India, air pollution is widespread in urban areas where vehicles are the major contributors and in a
few other areas which have a high concentration of industries and thermal power plants. Vehicular
emissions are of particular concern since these are ground level sources and thus, have the maximum
impact on the general population. The number of motor vehicles has increased from about 3 lakh in
1951 to 67 crore in 2003. In 2003, personal transport vehicles (two-wheeled vehicles and cars only)
constituted about 80% of the total number of registered vehicles thus, contributing significantly to
total air pollution load.
India is one of the ten most industrialised nations of the world. But this status has brought with it
unwanted and unanticipated consequences such as unplanned urbanisation, pollution and the risk of
accidents. The CPCB (Central Pollution Control Board) has identified 17 categories of industries
(large and medium scale) as significantly polludng.
Question 30.
What is the relationship between environment and the economic development?
Answer:
There are two views on how economic development affects environment. According to first view,
economic development degrades our environment by using natural resources for production of goods
and services. Economic development results in pollution in the form of air pollution, water pollution
and land pollution.
According to second view, economic development improves environment quality. The discovery of
new materials and sources not only use less of natural resources, but sometimes replace them. Thus,
with economic development, degradation of environment decreases.
From the above discussion, we find that relationship between environment and economic
development is dynamic and complex. It is difficult to decide whether the economic development
leads to degradation of environment or not. Undoubtedly, economic development leads to excessive
extraction of natural resources and generation of pollutants, but it introduces new processes, materials
and discoveries. We should be careful and ensure that the economic development should not damage
the environment.
Question 31.
How do the following factors contribute to the environmental crisis in India? What problem do they
pose for the government?
(i) Rising population
(ii) Water contamination
(iii) Industrialisation
(iv) Urbanisation
Answer:
(i) Rising population with population explosion the growing needs of the expanding population have
to be met and due to this the demand for resources for both production and consumption have gone
beyond the rate of regeneration of the resources. The pressure on the absorptive capacity of the
environment has increased leading to environmental crisis.
(ii) Water contamination Water bodies (e.g. lakes, rivers, oceans, aquifers and groundwater) are
contaminated when pollutants are discharged directly or indirectly into water bodies without adequate
treatment to remove harmful compounds. Water contamination affects plants and organisms living in
these bodies of water. The effect is damaging not only to individual species and populations, but also
to the natural biological communities.
(iii) Industrialisation With rapid industrialisation for meeting the growing needs of population, the
resources being used as inputs in the industrialisation process are depleting at a fast pace. Many of
these resources are exhaustible and cannot be replenished easily.
(iv) Urbanisation Rural population has started migrating to urban areas in search of jobs and even in
rural areas urban lifestyle is being copied by the younger generation. This has led to rise in power
consumption, vehicle traffic, etc. This in turn has resulted into faster depletion of resources and air
pollution.
Question 32.
What are the functions of the environment? (NCERT)
Answer:
The main functions of environment are
 Environment supplies resources for production Environment includes those physical

resources which are gifted by nature. These resources are used for producing various goods
and services.
 Environment sustains life Sun, soil, air and water are the essential ingredients of environment
for the human life. Absence of these will lead to an end of life on Earth.
 Environment assimilates waste Production and consumption activity generates wastes. It is
generally in the form of garbage which is absorbed by the environment.
 Environment enhances quality of life: Environmental surroundings include rivers, oceans,
mountains and deserts. Man enjoys these surroundings, adding to the quality of his life.
Question 33.
Explain how the opportunity costs of negative environmental impact are high. (NCERT)
Answer:
The negative environmental impact has high opportunity costs as explained below
 The industrial development in past has polluted and dried up rivers and other aquifers making
water an economic good. Also, cleaning up of polluted rivers and replenishing water
resources require huge investments.
 The intensive and extensive extraction of both renewable and non-renewable resources has
exhausted some of these
resources. Huge amount of funds need to be spent on technology and research to explore new
resources.
 The health costs of degraded environmental quality are also rising as decline in air and water
quality has resulted in increased incidence of respiratory and water-borne diseases.
 Global environmental issues such as global warming and ozone depletion also contribute to
increased financial commitments for the government.
Thus, it is clear that the opportunity costs of negative environmental impacts are high.
Question 34.
Name any two movements to prevent cutting of trees.
Answer:
Chipko movement and Appiko movement
Question 35.
How can mini-hydel plants sustain environment?
Answer:
Mini-hydel plants are environment friendly as they do not change the land use pattern in areas where
they are located. Also, they generate enough power to meet local demands.
Question 36.
How is solar electricity generated? Where can it be used?
Answer:
With the help of photovoltaic cells, solar energy can be converted into electricity. This technology is
extremely useful for remote areas and for places wheere supply of power through grid or power lines
is either not possible or proves to be very costly.
Question 37.
Name animals/birds which help in bio-pest control?
Answer:
Snakes, owls, peacock, lizards, etc help in bio-pest control.
Question 38.
Given the full form of UNCED.
Answer:
United Nations Conference on Environment and Development.
Question 39.
What did the Brudtland Commission emphasise?
Answer:
Brudtland Commission emphasises on protecting the future generations by adopting techniques which
help in sustainable development.
Question 40.
How can thermal power plants cause pollution?
Answer:
Thermal power plants emit large quantities of carbon dioxide which may cause land and water
pollution.
Question 41.
Name the fuels used by rural households in India.
Answer:
Rural households in India use wood, dung-cake and other biomass as fuel.
Question 42.
Use of which fuel has lowered air pollution in India?
Answer:
Compressed Natural Gas (CNG)
Question 43.
What is sustainable development? (NCERT)
Answer:
It refers to the development strategy to meet the needs of the present generation without
compromising on the needs of the future generation. Sustainable development aims at decreasing the
absolute poverty of the poor by providing lasting and secure livelihoods that minimise resource
depletion, environmental degradation, cultural disruption and social instability.
Question 44.
‘Sustainable development is considered as a paradigm shift in development thinking’. Why?
Answer:
Sustainable development implies meeting the basic needs of all and extending to all the opportunity to
satisfy their aspirations for a better life, without compromising on the needs of future. The strategies
for sustainable development imply the use of non-conventional sources of energy to minimise the
adverse environmental impacts. Promotion of natural resources, conservation, preserving regenerative
capacity of ecological system and avoiding the imposition of environmental rules on future
generations would lead to sustainable development.
Question 45.
Give the features of sustainable development.
Answer:
The features of sustainable development are as follows
 Sustained rise in real per capita income and economic welfare.

 Rational use of natural resources.
 No reduction in the ability of future generations to meet their own needs.
 Check on pollution.
Question 46.
How can bio composting be encouraged in India?
Answer:
Farmers should be encouraged to use organic fertilisers for production. Cattles should be maintained
because their waste is very useful in the form of fertiliser. Earthworm can also be used convert
organic matter into compost faster than the normal composting process.
Question 47.
Outline the steps involved in attaining sustainable development in India. (NCERT)
Answer:
The strategies for sustainable development in India are
 Use of non-conventional sources of energy.

 Use of LPG and gobar gas in rural areas.
 Use of CNG as fuel in urban areas.
 Use of wind power in the areas where speed of wind is usually high.
 Use of solar power through photovoltaic cells.
 Mini hydel plants in mountainous regions.
 Use of compost made from organic wastes.
 Use of traditional knowledge and practices.
 Bio-pest control
Question 48.
You are residing in highly populated area of Delhi. Due to over population, your locality harms the
environment, suggest any four measures to your neighbours to protect environment.
Answer:
I shall suggest following measures to protect environment
 Avoid the use of plastic.

 Promote the use of CNG as fuel.
 Promote the use of solar energy.
 Promote rain water harvesting.
Question 49.
Enumerate the benefits and limitations of using solar power.
Answer:
Following are the benefits associated with solar power
 It is relatively easy to install solar panels which help to generate solar power.
 Solar panels, once installed, does not require much maintenance.
 These panels provide sufficient solar power during the long summer days and one does not
have to face the problem of power cuts.
Following are the limitations associated with solar power:
 It is not suitable for areas where sunlight is less or which are generally overcast.
 Solar power is not available at night.
 The initial cost of establishing solar panels is more ahd it requires active action by the
consumers.
Question 50.
Explain the relevance of intergenerational equity in the definition of sustainable development.
(NCERT)
Answer:
Sustainable development in itself makes it obligatory for the development process to be such that the
basic needs of not only the present generation, but also of the future generations are taken care of. It
becomes the moral duty of this generation to handover the Earth to the future generation in good
form.
Therefore, if the resources are overused or misused, they will deplete so fast that the production
capacity of the future generations would not be sustainable. Sustainable development aims at
maximising the welfare of both present and future generations. It does not mean hindering the existing
pace of economic growth, but refers to a judicious or optimum utilisation of resources in such a
manner that pace of economic growth sustains with intergenerational equity.
Question 51.
Keeping in view your locality, describe any four strategies of sustainable development. (NCERT)
Answer:
Four strategies of sustainable development opted in our locality are:
(i) Use of eco-friendly fuel (CNG, LPG) The fuels such as petrol and diesel emit huge amount of
carbon dioxide that add to the green house impact. In order to control pollution, the use of CNG and
LPG should be promoted. These fuels are cleaner and eco-friendly. Also, pooling of vehicles in the
locality should be promoted.
(ii) Use of renewable resources (Wind power) India being a tropical country is well endowed with
sunlight, water and wind energy. These natural resources are renewable and pollution free. Thus,
attempts should be made to harness solar and wind energy by employing different technologies and to
go for rain water harvesting. It would help in sustainable economic development.
(iii) Recyclable products The household waste materials like newspapers, old bottles, used batteries,
etc should be accumulated and should be distinguished as biodegradable and non-biodegradable
wastes. The biodegradable wastes are those wastes that can be decomposed and can be used as
manure for organic farming. The non-biodegradable wastes like plastic, etc should be recycled and re-
used. Use of polythene bags should be discouraged.
(iv) Judicious use of electricity is a resource which is used in all households in our locality. It is one
such resource which is already in short supply and may not be available to future generations, if we do
not start using it judiciously. Therefore, the easiest strategy for sustainable development is to use
power in an efficient manner without wasting it. This can be done by using energy efficient
equipment.
Question 1.
What are the examples of abiotic elements of the environment?
(a) Birds, animals, plants and forests
(b) Air, water, land, rocks and sunlight
(c) Birds, animals, air and water
Answer:
(b) Air, water, land, rocks and sunlight
Hint:
Environment includes the biotic and abiotic factors that influence each other. While all living
elements—the birds, animals and plants, forests, fisheries etc are biotic elements and abiotic elements
include air, water, land etc. Rocks and sunlight are all examples of abiotic elements of the
environment.
Question 2.
Environment is defined as the total of planetary inheritance and the totality of
(a) non-planetary inheritance
(b) all natural resources
(c) all resources
(d) all biotic factors
Answer:
(c) all resources
Hint:
Environment is nothing but the sum total of all surroundings of a living organism, including natural
forces and other living things, which provide conditions for development and growth as well as
danger and damage. So, it is the total of planetary inheritance and the totality of all resources.
Question 3.
What are the factors responsible for global warming?
(a) Burning of fossil fuel
(b) Deforestation
(c) Farming
Answer:
Hint:
Factors that may be contributing to global warming are the burning of coal and petroleum products
(sources of carbon dioxide, methane, nitrous oxide, ozone), deforestation, which increases the amount
of carbon dioxide in the atmosphere. Farming is also a reason as livestock are grazed at a large scale
and methane gas released from animal waste.
Question 4.
The problem of ozone depletion is caused by high levels of and compounds in the stratosphere.
(a) methane and chlorine
(b) chlorine and bromine
(c) bromine and carbon-dioxide
(d) carbon-dioxide and methane
Answer:
(b) chlorine and bromine
Question 5.
Households in rural areas generally use wood, dung cake or other biomass as fuel. This practice has
several adverse effects on environment. To rectify these effects, what steps was taken?
(a) Providing subsidy on LPG
(b) Loans and subsidy for gobar gas plant
(c) Entourage to use fossil fuel
Answer:
Question 6.
According to Herman Daly, a leading environmental economist, what should be done to achieve
sustainable development?
1. Limiting the human population
2. Technological progress should be input efficient
3. Renewable resources should not be highly extracted
4. Non-renewable resources use should hot exceed its subtitutes creation
(a) Only 3
(b) 1 and 2
(c) 2, 3 and 4
Answer:
Question 7.
When is the environment fails to perform its third and vital function of life sustenance?
1. Resource extraction is above the rate of regeneration
2. Wastes generated are within the assimilating capacity
3. Due to global warming
4. Due to ozone depletion
(a) Both 1 and 2
(b) Both 3 and 4
(c) Only 1
Answer:
(a) Both 1 and 2
Question 8.
The resource extraction is not above the rate of regeneration of the resource and the wastes generated
are within the assimilating capacity of the environment. When this is not so, the environment fails to
perform its third and vital function of life sustenance and this results in an environmental crisis.
Why environmental problem did not arise before industrialisation?
(a) Demand for environmental resources and services was much less than their supply
(b) People were not aware about environmental resources
(c) Population was within the absorptive capacity
Answer:
Hint:
Before countries took to industrialisation, the demand for environmental resources and services was
much less than their supply. This meant that pollution was within the absorptive capacity of the
environment and the rate of resource extraction was less than the rate of regeneration of these
resources.
Question 9.
In order to address major environmental concerns in India, the government set up the Central
Pollution Control Board.
These concerns are
1. Air pollution
2. Water Pollution
3. Land pollution
4. Noise pollution
(a) Only 1
(b) Both 1 and 2
(c) 1, 2 and 3
Answer:
(b) Both 1 and 2
Question 10.
Since thermal and hydro power plants have adverse environmental impacts. Which sources can be
used as its alternative?
(a) Wind power
(b) Solar power
(c) Fossil fuel
Answer:
Hint:
Wind power and solar power can be used as an alternative to burning fossil fuels. They are plentiful,
renewable, widely distributed, clean, produces no greenhouse gas emissions during operation,
consumes no water, and uses little land.
Question 11.
……… aims at promoting the kind of development that minimises environmental problems and meets
the needs of the present generation without compromising the ability of the future generation to meet
their own needs.
(a) Environmental development
(b) Economic development
(c) Overall development
(d) Sustainable development
Answer:
(d) Sustainable development
Question 12.
Opportunity costs of negative environmental impacts are
(a) negative
(b) positive
(c) low
(d) high
Answer:
(d) high
Chapter-9 INDIAN , CHINA AND PAKISTAN a comparative study.
Question 1.
State the common feature in the development strategy of India, China and Pakistan during 1950-
1990?
Answer:
Five Year Plans, i.e. economic planning.
Question 2.
State two indicators of human development.
Answer:
Human Development Index (HDI) and life expectancy at birth.
Question 3.
Explain the meaning of Great Leap Forward (GLF) campaign with reference to China.
Answer:
Great Leap Forward (GLF) campaign was the policy aiming at the industrialisation on a massive scale
in China.
Question 4.
In which year was the Great Proletarian Cultural Revolution introduced in China? By whom was it
started?
Answer:
The Great Proletarian Cultural Revolution was introduced in 1966-67. It was started by Mao Tse
Tung.
Question 5.
Name the programme that was introduced in China to control the growth of population.
Answer:
One child norm
Question 6.
By whom is the Human Development Index prepared every year?
Answer:
United Nations Development Programme
Question 7.
What is meant by commune system of farming?
Answer:
It is a collective system of farming practised in China.
Question 8.
What can you say about sex ratio of India, Pakistan and China?
Answer:
Sex ratio is based against females in all the three countries.
Question 9.
In context of India and Pakistan, which sector contributes the highest towards the GDP of the
country?
Answer:
In India and Pakistan, service/tertiary sector contributes the highest towards the GDP of the country.
Question 10.
What change takes place in sectoral share of employment in normal course of employment?
Answer:
In the normal course of development, countries first shift their employment from agriculture to
manufacturing and then to services.
Question 11.
Explain why China is able to lead in all the human development indicators?
Answer:
China is able to lead in almost all the human development indicators because of the establishment of
infrastructure in the areas of education and health, land reforms, long existence of decentralised
planning and existence of small enterprises which can be easily regulated.
Even before the reforms, basic health services were provided in villages and food was equitably
distributed through the commune system. Each reform was implemented on a small scale initially and
then spread out on a larger scale. Laws and policies, such as the one child norm, among others were
strictly enforced.
Question 12.
What are Special Economic Zones? Why do they attract foreign investors?
Answer:
A Special Economic Zone (SEZ) is a geographical region that has economic laws different from a
country’s typical economic laws. Usually, the goal is to increase foreign investment.
Special Economic Zones attract investors since they offer high quality infrastructure facilities and
support services. Besides allowing duty free import of capital goods and raw materials, attractive
fiscal incentives and simpler customs, banking and other procedures are offered in such zones.
Question 13.
Enumerate the areas in which India has an edge over Pakistan?
Answer:
In the area of skilled manpower and research and development institutions, India is better placed than
Pakistan. Indian scientists excel in the areas of defence technology, space research, electronics and
avionics, genetics, tele communications etc. The number of PhDs produced by India in science and
engineering every year (about 5000) is higher than the entire stock of PhDs in Pakistan. Issues of
health facilities in general and infant mortality in particular are better addressed in India.
Question 14.
Explain the Great Leap Forward (GLF) campaign of China initiated in 1958. (NCERT)
Answer:
The Great Leap Forward (GLF) campaign initiated in 1958 aimed at industrialising the country on a
massive scale. People were encouraged to set up industries in their backyards. In rural areas,
communes were started. Under the commune system, people collectively cultivated lands. Around
26,000 communes covered almost all the farm population in 1958.
Question 15.
People prefer to have a male child in many developing countries including India, China and Pakistan.
Why is such a phenomenon, witnessed in these countries?
Answer:
Both rural and urban populations have economic and traditional incentives to prefer sons over
daughters. Sons are preferred as they provide the primary financial support to the parents. A woman
changes her surname to her husband’s surname after marriage. For some families, one’s daughter-in-
law’s name instead of a daughter’s name would be added in the book of family tree. Therefore, if a
family had no son, the fortune and name of the family would have no legal heirs. The choice of small
families also affects the people’s views on the sex of their child.
Question 16.
Write a brief note on SAARC.
Answer:
South Asian Association for Regional Cooperation (SAARC) was established on 8th December, 1985
to encourage cooperation among member countries in the fields of agriculture, health, population
control, anti-terrorism measurs, rural development, science and technology and narcotics control
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka and Pakistan are its members. It
was formed on the proposal of Zia-Ur-Rehman, the then President of Bangladesh. Its headquarter is in
Kathmandu.
Question 17.
Write a brief note on Human Development Index (HDI).
Answer:
HDI includes quantitative aspects of per capita GDP and the quality aspects of performance in health
and education. It is an average of life expectancy index, education index and GDP index. It was
created by a Pakistani economist Mahbub-ul-Haq and Indian economist. Amartya Sen in 1990. Every
year, the United Nations Development Programmes (UNDP) computes this index for various
countries and publishes it.
Question 18.
Explain the similarities in the development strategies of India, Pakistan and China.
Answer:
Development Strategies of India, China and Pakistan
India, China and Pakistan have many similarities in their development strategies which are as
follows”
 All the three countries had started planning their development strategies in similar ways.
India announced its Five Year Plan in 1951-56, while Pakistan announced its First Five Year
Plan in 1956, which is called Medium Term Plan. China announced its First Five Year Plan in
1953.
 India and Pakistan adopted similar strategies such as creating a large public sector and raising
public expenditure on social development.
 Till the 1980s, all the three countries had similar growth rates and per capita incomes.
 Economic reforms took place in all the three countries. Reforms started in India in 1991, in
China in 1978 and in Pakistan in 1988.
Question 19.
Enumerate the areas in which Pakistan has an edge over India.
Answer:
Pakistan has achieved better results with regard to
 Migration of workforce from agriculture to industry.

 Migration of people from rural to urban areas.
 Access to improved water sources.
 Number of people below poverty line.
Question 20.
What is the important implication of the ‘one child norm’ in China? (NCERT)
Answer:
The important implications of the ‘one child norm’ are
 Low population growth.

 Decline in the sex ratio.
 After a few decades, there will be more elderly people in proportion to young people.
 In the long run, China will have to provide more social security measures with fewer workers.
Question 21.
Evaluate the various factors that led to the rapid growth in economic development in China. (NCERT)
Answer:
Various factors that led to the rapid growth in economic development in China are given below
 China initiated to implement the economic reforms in 1978 without any compulsion by the
World Bank and IMF.
 China established infrastructure in the field of health and education that helped effectively in
improving the social and economic indicators.
 China implemented land reforms that increased the productivity.
 There was long existence of decentralised planning.
 The size of individual enterprises was kept small.
All the factors mentioned above helped positively towards economic development.
Question 22.
Give reasons for the slow growth and re-emergence of poverty in Pakistan. (NCERT)
Answer:
The percentage of poor was 40% in Pakistan during 1960s that reduced to 25% in 1980s and started
going up in 1990s. The causes for the slowdown of growth and re-emergence of poverty are as given
below:
 The agricultural growth was not the result of technology improvement. Rather, it was based
on good climatic conditions. When the conditions were good, the economic growth showed
positive trends and vice-versa.
 In Pakistan, a considerable part of foreign exchange came from remittances from Pakistani
workers in the middle East.
 In Pakistan, there is more dependence on foreign borrowings and increasing difficulty in
paying back the Answer:
 Inadequate infrastructure for manufacturing sectors.
Question 23.
Write a short note on
(i) ASEAN
(ii) BRICS
Answer:
(i) ASEAN: Association of South East Asian Nation (ASEAN) was created on 8th August, 1967 by
Indonesia, Malaysia, the Philippines, Singapore and Thailand with objectives to accelerate economic
growth, social progress, regional stability and to resolve their differences peacefully. Subsequently,
Brunei, Cambodia, Laos, Myanmar and Vietnam also joined this association. It is headquartered at
Jakarta.
(ii) BRICS: BRICS is the acronym representing association of five major emerging national
economies, viz. Brazil, Russia, India, China and South Africa. All the member countries are leading
developing or newly industrialised countries and are characterised by their fast growing economies
and those who significantly influence their regional affairs. It was formed in 2011 and works on the
principles of non-interference, equality and mutual benefit.
Question 24.
Why are regional and economic grouping formed? (NCERT)
Answer:
Regional and economic grouping is one of the major instruments of promoting international trade
activities among countries. It focuses on creation of larger economic units from smaller national
economies. Regional and economic groupings such as the SAARC, European Union, ASEAN, G-8,
G-20 etc are formed to increase economic cooperation among nations in the neighbourhood or those
sharing common economic interests.
This is particularly considered essential by developing countries as they are all facing competition not
only from developed nations but also amongst themselves in the relatively limited economic space
enjoyed by the developing world. Besides, cooperation with other economies in our neighbourhood is
also required, as all major common economic activities in the region have an impact on overall human
development in a shared environment.
Question 25.
Define liberty indicators. Give some examples of liberty indicators. (NCERT)
Answer:
‘Liberty indicators’ are those indicators which represent the degree of civil and political freedom to
individuals in a country. They should also be considered alongwith indicators of income, health and
education in the human development index. One such indicator has actually been added as a measure
is ‘the extent of democratic participation in social and political decision-making’ but it has not been
given anyextra weight.
Some other ‘liberty indicators’ are measures of ‘the extent of constitutional protection given to rights
of citizens’ or ‘the extent of constitutional protection of the Independence of the Judiciary and the
Rule of Law’ which have not been introduced in HDI till now. Without including such indicators and
giving them adequate weightage, the construction of a human development index remains incomplete
and its usefulness remains limited.
Question 26.
What are the various means by which countries are trying to strengthen their own domestic
economies? (NCERT)
Answer:
The following are the various means through which the nations are trying to strengthen their own
domestic economies:
 Nations are forming various regional and economic groupings like SAARC, European Union,
G-8, G-20, ASEAN etc in order to strengthen their economies through economic cooperation
among the countries in the group to safeguard their common interests.
 They are also trying to know and analyse the developmental process adopted by their
neighbouring nations, so as to evaluate their strengths and weaknesses and formulate policies
accordingly.
 Nations have also resorted to liberalise their economies by minimising government
interference in economic activities. The economy is governed by market forces which
promote efficiency and strengthen the economy.
 Nations have also adopted the process of globalisation to integrate their economies with other
economies of the world in order to provide wide international market for their domestic
producers and attract foreign investment.
Question 27.
What similar developmental strategies have India and Pakistan followed for their respective
developmental paths? (NCERT)
Answer:
India and Pakistan have followed following similar strategies in their respective development plans
 India and Pakistan both started their development process on the basis of economic planning
after getting independence in 1947.
 Both of them have adopted the mixed economic system involving the co-existence of both the
public and the private sector.
 Both the countries relied more on the public sector for initiating the process of growth and
development.
 Both of them introduced economic reforms around the same time to strengthen their
economies. Pakistan initiated reforms in 1988 and India followed in 1991.
 They both have announced Five Year Plans for growth and development.
Question 28.
Describe the path of developmental initiatives taken by Pakistan for its economic development.
(NCERT)
Answer:
For economic development, Pakistan followed the mixed economy model in which public and private
sectors co-exist.
The different policies adopted by Pakistan are stated below
 A variety of regulated policy frameworks were introduced in late 1950s and 1960s.
 Protection of consumer goods domestic industries through tariff barriers.
 The introduction of green revolution and mechanisation in agriculture sector.
 Public investment in infrastructure in selected areas.
 Nationalisation of capital goods industries was introduced in 1970s.
 In 1980s, the policy of denationalisation and encouragement to private sector was adopted-
 In 1988, economic reforms were initiated in the economy.
Question 29.
Mention the salient demographic indicators of China, Pakistan and India. (NCERT)
Answer:
The salient demographic indicators of China, Pakistan and India are discussed below
 The population of Pakistan is very small and accounts for roughly about one-tenth of China or
India. China is the largest nation and geographically occupies the largest area among the three
nations therefore, its density is the lowest.
 One child norm was introduced in China in late 1970s to check population growth. This
measure led to a decline in the sex ratio.
Sex ratio is biased against females in all three countries. In recent times, all three countries
are trying to adopt various measures to improve the situation. Due to one child norm, after
few decades there will be more elderly people in proportion to young people.
 The fertility rate is low in China and very high in Pakistan.
 Urbanisation is high in both Pakistan and China with India having only 32% of its people
living in urban areas.
Question 30.
Compare and contrast the development of India, China and Pakistan with respect to some salient
human development indicators. NCERT
Answer:
The development of India, China and Pakistan with respect to some salient human development
indicators can be assessed and compared with the help of the following points:
 China is ahead of India and Pakistan in human development indicators. China has better
ranking in terms of income indicator such as GDP per capita, or proportion of population
below poverty line or health indicators such as mortality rates, access to sanitation, literacy,
life expectancy or malnourishment.
 Pakistan is ahead of India in reducing proportion of people below the poverty line with 51%
people below poverty line while the ratio being 61% for India.
 Pakistan’s performance in education, sanitation and -cess to water is better than India.
 Maternal mortality is very high in India and Pakistan as compared to China. In China, for one
lakh births, only 32 women die whereas in India and Pakistan, more than 150 women die.
 All the three countries provide improved water sources for most of their population.
 Considering the international poverty rate of $ 2 a day, India has the largest share of poor
among the three countries in absolute terms.
Question 31.
Enumerate the successes and failures of structural reforms in China.
Answer:
Success of Structural Reforms in China:
 There was existence of infrastructure in the areas of education and health and land reforms.
 There was decentralised planning and existence of small enterprise.
 Through the commune system, there was more equitable distribution of foodgrains.
 There was extension of basic health services in rural areas.
Failures of Structural Reforms in China:
 There was slow pace of growth and lack of modernisation in the Chinese economy under the
Maoist rule.
 Maoist vision of economic development based on decentralisation, self-sufficiency and
shunning of foreign technology had failed.
 Despite extensive land reforms, collectivistion, the Great Leap Forward and other initiatives,
the per capita gain in output in 1978 was the same as it was in the mid 1950s.
Question 32.
Enumerate the successes and failures of structural reforms in Pakistan.
Answer:
Success of Structural Reforms in Pakistan:
 Pakistan has succeeded in more than doubling its per capita income inspite of high growth
rate of population.
 Pakistan has achieved self-sufficiency in the production of food.
 Pakistan has succeeded in developing its service and industry sectors at a fast rate.
 The use of modern technology is improving in Pakistan.
Failures of Structural Reforms in Pakistan:
 Growth rate of GDP and its sectoral constituents have fallen in 1990s.
 Poverty and unemployment are still areas of major concerns.
Question 1.
For the purpose of development, which type of economic system is followed in China?
(a) Mixed economy
(b) Socialist economy
(c) Capitalist economy
Answer:
(b) Socialist economy
Question 2.
China introduced GLF policy in 1958, which stands for
(a) Great Leap Forward
(b) Great Leap Faster
(c) Grand Leap Forward
Answer:
(a) Great Leap Forward
Question 3.
In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework, which
includes
(a) direct import control
(b) tariff protection for manufacturing
(c) direct export control
Answer:
Hint:
Pakistan also opted for mixed economic structure in the early phases, the policy combined tariff
protection for manufacturing of consumer goods together with direct import controls on competing
imports.
Question 4.
Which of the following country has the highest growth rate of population?
(a) India
(b) China
(c) Pakistan
(d) None of these
Answer:
(c) Pakistan
Question 5.
Which of the following country has the highest density of population?
(a) India
(b) China
(c) Pakistan
(d) None of these
Answer:
(a) India
Hint:
China is the third largest country in the world and lowest growth of population rate as a result its
density is low, with India being highest at 358 person/sq km and Pakistan being second highest at 193
person/sq km among the three countries.
Question 6.
India, China and Pakistan all have either very high population or high growth rate of population.
Which of the following reason(s) is/are responsible for this?
(a) Fertility rate
(b) Illiteracy
(c) Poverty
Answer:
Hint:
Fertility rate is calculated as the number of children borne by a women in the reproductive age of 15-
45 years, which is generally high in Asian countries, also poverty encourages bigger family jize, to
have more number of working hands.
Question 7.
Purchasing power parity is important indicator of human development index, it includes
(a) equality of purchasing power among countries
(b) equality of per capita income among countries
(c) equality of distribution of income among countries
Answer:
(a) equality of purchasing power among countries
Hint:
PPP shows the quantity of goods and services that can be bought with a unit of money among
different countries which depends upon general price level in the country and level of income.
Question 8.
Mark the incorrect statement among the following.
(a) Access to improved water sources is an indicator of Human Development Report
(b) Pakistan has highest access to clean water than India and China
(c) Due to geographical location of Pakistan, it has access to many fresh water bodies and rivers
Answer:
Question 9.
The reason(s) for the slow down of economic growth and re-emergence of poverty in Pakistan is/are
(a) foreign exchange reserves of Pakistan depends upon remittances
(b) growing dependency on foreign loans and debt trap
(c) agriculture is based on good harvest and not an institutionalised process
Answer:
Hint:
Foreign exchange plays an important role in economic development and it is built through exports but
in case of Pakistan, it depends upon foreign remittances also growing foreign loans and burden of
repayment forced into debt trap, agriculture also didn’t performed well due to policy failures.
Question 10.
Out of the following countries, whose GDP per capita based on PPP US $ is highest?
(a) India
(b) China
(c) Pakistan
(d) None of these
Answer:
(b) China
Question 11.
Structural change refers to shift in the economic system from agriculture to industry and services.
Which of the following countries has outperformed others in a shift to services in 1980s?
(a) India
(b) China
(c) Pakistan
(d) None of these
Answer:
(c) Pakistan
Question 12.
In the industrial sector has maintained a double digit growth rate, whereas and growth rate has
declined.
(a) China, India and Pakistan
(b) India, China and Pakistan
(c) Pakistan, India and China
Answer:
(a) China, India and Pakistan
Question 13.
The various reform measures led to rapid growth in China includes
(a) each reforms implemented earlier was extended
(b) development of social infrastructure
(c) agricultural reforms
Answer:
Hint:
China not only invested heavily on development of social infrastructure, i.e. health, education etc but
also extended existing reform measures to a larger scale, also agricultural reforms brought prosperity
to a vast number of poor people.
Question 14.
Through which of the following system did China achieved equitable distribution of foodgrains?
(a) Commune system
(b) Market mechanism
(c) Economic planning
(d) There is unequal distribution of foodgrains
Answer:
(a) Commune system
Hint:
Commune system refers to collective cultivation by the farmers, which not only ensured proper
utilisation of available land but also led to equitable distribution of foodgrains among its people.
Question 15.
Mark the true statement(s) about ‘undernourished population in the three countries.’ (India, China and
Pakistan).
(a) The percentage of population, which is not able to obtain adequate diet is called undernourished
population
(b) China has lowest undernourished population among the three
(c) Undernourished population is much higher in Pakistan than India
Answer:

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INDEX

Chapter-1 Indian economy on eve of independence

Chapter-1 Indian economy on eve of independence

 The death rate was quite high.

 They collected raw material for British industries from India.

Multiple Choice Questions

Chapter-2 Indian economy 1950-1990

Basis Private sector Public sector

 To provide a leading role to public sector.

The disadvantages of mixed economic system are

Basis Planning objectives Plan objectives

 International trade encourages specialisation on the basis of comparative advantage. This

 The share of agricultural sector has fallen.

Green revolution was implemented because of the following reasons:

Green revolution benefitted the farmers in the following ways:

 It is necessary to give subsidies to farmers, especially the small farmers to provide ‘ an

 Subsidies are benefitting the fertiliser industry more than farmers.

Protection from imports took two forms

Multiple Choice Questions

 Increase in fiscal deficit

 It was an attempt to India corruption free.

 Socialist pattern of society is disturbed.

 It will introduce efficiency and profitability in Public Sector Undertakings (PSUs).

 To increase competition among domestic industries.

 dismantling of quantitative restrictions on imports and exports.

 Improving the financial condition of the government.

 To promote international monetary cooperation.

The main objectives of IBRD are as follows:

 To help reconstruction of member countries after the Second World War.

Basis Strategic sale Minority sale

(ii) Differences between bilateral and multi-lateral trade

Basis Bilateral trade Multi-lateral trade

Basis Tariff barriers Non-tariff barriers

 It helps the economy to adopt new and flexible methods of production.

 Public investment in agricultural sector especially in infrastructure which includes irrigation,

Multiple Choice Questions

Chapter-5 human capital formation

 Preventive medicine (vaccination)

 Training given within the office premises.

Expenditure on information as a source of human capital formation People spend to acquire

Basis Physical Capital Human Capital

 It helps to develop responsible citizens.

Basis Human Capital Human Development

 Increase in labour productivity Investment in human capital through expenditure on

 Higher productivity of physical capital Human capital increases productivity of physical

 Adult literacy level

 Asa percentage of total government expenditure.

 In India, about 30.3 crore people are still illiterate.

Multiple Choice Questions

 Provision of adequate credit in rural areas.

 National Bank for Agriculture and Rural Development.

 They ensure timely flow of credit to the farmers.

Limitations of rural banking are as follows

 Development of the productive resources of each locality.

 They are making contracts with farmers.

 Faulty weighing and manipulation of accounts by traders which results in exploitation of

 Apni Mandi (Punjab, Haryana and Rajasthan)

Green Revolution Golden Revolution