ECONOMICS

Q.1 A) Fill in the blanks. 5×1=5

1. अतिरिक्त
2. नागिीकिण
3. 10 वर्ष
4. 99
5. मध्यम

Q.1 B) Match the correct pairs. 5×1=5

1. ड
2. ई
3. अ
4. ब
5. क

Q.1 C) State true or false. 6×1=6

1. बिोबि
2. चूक
3. बिोबि
4. बिोबि
5. चूक
6. बिोबि

Q.2 A) Define the following: 3×2=6

1. Solar Energy
 Solar energy the type of energy which is acquired from the rays of the Sun.
 In a tropical country like India, it is an unlimited source of energy.
 It can be used for cooking, heating, community lighting, radio, TV, water
pumping etc.

5. Unemployment
 Unemployment is a situation wherein, a person between the age of 15-59
years is willing and able to work at an existing wage rate but fails to find a job.
 It is basically a situation arising out of joblessness.
 In other words, employment is an absence of any remunerative activity of an
able-bodied person of working age.

6. Privatisation
 Privatisation is the process which reduces the involvement of the public sector
in a country's economy.
 It increases the role of the private sector in business and economic activities.
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  In a narrow sense, it means the transfer of ownership from public to private
sector.
 In a broader sense, refers to the introduction of private management and
control with or without a change in the ownership.

Q.2 B) Give reasons: 3×2=6

4.
 Prior to 1991, there was a shortage of foreign exchange reserves.
 The new economic policy thereafter opens the foreign investment in India as
FDI which was considered as a channel to increase the Foreign Exchange
Reserves.
 To increase production, required foreign capital and modern technology. This
would, in turn, contribute to the growth of the economy.
 Thus, under NEP, foreign capital is encouraged.

5.
 Absolute poverty is a situation described by an acute shortage of basic human
needs such as food, clean drinking water, shelter, education, health services,
etc.
 Government and NGOs can provide various services to the poor.
 Food, potable water shelter, education, health services can be provided.
 Hence, absolute poverty can be eradicated.

6.
 India ranks second in the world next to China having a population of 121.02
crores in 2011.
 India has an unfavourable land-man ratio.
 As per 2011 census, India has 2.4% of the world land area, where it supports
17.5% world's population.
 Hence, India is an overpopulated country.

Q.3 A) Distinguish between: 3×2=6

1.
Renewable Energy
1 It is exhaustible in nature.
2 It creates more pollution.
3 It is cheap.
4 Examples are coal, crude oil, etc.
Non – Renewable Energy
It is not exhaustible in nature.
It creates less pollution.
It is expensive.
Examples: solar and wind energy, etc.

4.
Census Method Sample Method
2

1 It is conducted when data is collected It is conducted when data is collected

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from the entire group. from a few items from the entire group.
2 It is a time-consuming method. It requires less time and manpower.
3 It is expensive and non-economical. It is cheap and economical.
4 Accurate conclusions can be obtained. Accurate conclusions cannot be
obtained.

5.
Economic Growth
1 It means an increase in the real
national income of the country.
2 It is narrow in scope and has a
quantitative dimension.
3 It is possible without economic
development.
4 Priority is given to the production of
goods and services.
Economic Development
It means economic growth along with
an increase in well being of the
people.
It is wide in scope and has aqualitative
dimension.
It is not possible without economic
growth.
Priority is given to the distribution of
goods and services.

Q.3 B) Explain: 3×2=6

1. Television
 Television is the most impressive and exciting audio-visual means of
communication.
 In India, first television was introduced in 1959 in Delhi and later on was
spread to different parts of the country.
 It provides news, information, music, education, and entertainment to people.
 Through satellite, television communication has become easier and faster all
over the world.

4. Globalisation
 Globalisation is the process of integrating the national economy with the world
economy.
 It is the outcome of liberalisation and privatisation.
 It is the ultimate aim of the New Economic Policy.
 Goods and services, capital, labour, and technology can freely move across
the national borders.

5. Population Explosion
 Population explosion is the rapid increase of population in an economy.
 It refers to the rapid growth in the population which affects the economic
growth and progress of per capita income of the people.
 Two main causes are high birth rate and low death rate.
 The resources of a nation are not enough to meet the needs of the people.
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Q. 4 Answer the following questions. 4 × 3 = 12
1.
 Death Rate refers to the number of deaths per 1000 population in a year. It is
also known as mortality rate.

The causes of the rapid decline in death rate are as follows:

 Control of natural calamities:
 Improvements in transportation, communication, rescue
operations, medical facilities etc. have reduced the devastating
effects of natural calamities.
 Improvement in Medical and health facilities:
 Rapid improvement has been made in the field of medical science
in recent years which can tackle various diseases.
 Increase in Medical and health facilities, doctor nurse ratio etc.
 Improvement in standard of living:
 Improvement in per capita consumption, quality food, education,
housing and clothing due to increase in economic development.
 Education:
 People are both educated and well informed regarding the
healthcare of their children.
 Other factors:
 Decline in infant mortality.
 Urbanization of population.
 Decline in social evils.
 Decline of pre and post Maternity deaths

5.
 The concept of poverty can be explained in terms of inadequate income in the
hands of people to fulfill their basic necessities such as food, clothing, shelter,
education, and health.
 It is a social phenomenon wherein an individual fails to earn sufficient income
to buy him bare means of subsistence.
 The Planning Commission of India has defined poverty in terms of nutritional
consumption of 2400 calories per head per day for rural areas and 2100
calories per head per day in urban areas.
 In general economic sense, there are two types of poverty namely and,
absolute poverty and relative poverty.
 Absolute poverty can be found when one is unable to consume 2100 calories
per day in urban areas and 2400 calories per day in rural areas. It can be
eradicated.
 Relative poverty is based on comparison of the lower income group that of the
highest income group such type of poverty compares the standard of living of
the people of different groups of sections. It cannot be eradicated.

6.
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The physical quality of life index is a composite indicator to measure economic

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development developed by a well-known economist, Morris D. Morris in 1979. PQLI

includes three main indicators namely, life expectancy indicator (L.E.I.), infant
mortality indicator (I.M.I.) and basic literacy indicator (B.L.I.).

Advantages of PQLI are as follows:

 Considered distribution:
 All the three indicators of PQLI depict the distributional features.
 A nation cannot achieve high national averages of literacy rate life
expectancy and low infant mortality rate unless the majority of its
population enjoys the fruits of economic development.

 Simple to measure:
 PQLI is simple to measure as the data pertaining easily available.
 The data regarding the indicators can be added and the composite index
can be obtained by dividing the sum by three.

 Indicates welfare level:

 PQLI indicates the quality of life of people in a nation.
 In simple terms, all three indicators indicate the welfare of the people.

 Easy comparison:
 PQLI can we used to make a comparison between different countries of
the world.
 It helps the developing as well as underdeveloped countries it is
appropriate and corrective measures.

Q.5 State with reasons, whether you agree or disagree. 4 × 3 = 12

3. No, I do not agree with the statement.
The Tenth five-year plan commenced on 1st April 2002 stretching to 31st March
2007.

The objectives of the tenth five-year plan are as follows:

 To achieve an average growth rate of 8% in the gross domestic product.
 To double the per capita income over a period of 10 years.
 Ensure greater flexibility in fiscal and monetary policies.
 To reduce inter-regional imbalances to ensure the development of all states.

5. Yes, I do agree with the above statement.

Reasons:
 An entrepreneur is a person who runs an enterprise.
 Talented and efficient entrepreneurs are required for economic development
as they are the ones who keep the wheels of the economy moving.
 An entrepreneur is the one who holds the ability to identify business
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opportunities and execute them, thereby creating job opportunities and value
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in the economy.
  The history of developed countries indicates that economic development is
largely due to the creative talents of entrepreneurs.
 Qualitative entrepreneurship is considered an associated indicator of
economic development.

6. Yes, I agree with the given statement.

Reasons:
 As per the Human Development Report of 2005, different countries can be
classified into three groups on the basis of the Human Development Index
(HDI).
 These groups are High HD group, medium HD group, and low HD group.
 The countries which range between 0.5 to 0.8 in HDI come under medium HD
group.
 As per the Human Development report of 2010, India's HDI value was 0.647.
 Hence, India stands in medium HD group countries.

Q.6 Answer the following questions in detail. 8 × 2 = 16

3.
Unemployment is a situation wherein, a person between the age group of 15-59
years is willing and able to work at an existing wage rate but fails to find a job.

 Rural unemployment: It is found in rural areas or villages. The different types

of rural unemployment are as follows:
 Seasonal unemployment:
 India being an agrarian nation, the majority of farmers depend on
monsoon for cultivation.
 Due to such dependency, only one crop can be raised in a year.
 The rural labourers find a job during this period only and remain
unemployed for the rest of the Year.
 Disguised unemployment:
 It is found When more persons are working then what is actually
required.
 It does not even affect the production or output. The marginal
productivity of the surplus worker is zero.

 Urban unemployment: It is found in urban areas suggest cities and towns. The
different types of urban employment as follows:
 Educated unemployment: It is found When educated people are able
and willing to work but failed to find a job. It mostly occurs among the
matriculates, undergraduates, graduates, and postgraduates.
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Unemployment among the educated middle class is acute in India.

  Technological unemployment: It is found when advancement in
technology replaces the workers. Introduction of robots in place of
workers, computers in nationalised banks, etc.
 Frictional unemployment: It is caused due to economic frictions. It is
temporary in nature. Unemployment caused due to the breakdown of
machines, shortage of raw materials, strikes and lockouts, power failure
etc.
 Cyclical unemployment: It occurs due to fluctuations in the business/
trade cycle. Economic activities slow down during recession and
depression. For example, the 2008 recession led to unemployment in
the IT sector.
 Structural unemployment: It is a long term phenomenon. It occurs when
backward and traditional economy undergoes structural changes to
become a modern and developed one. For example, 'tangas' may
become outdated with the introduction of the motor-driven rickshaw.

Rural Urban

Educated
Seasonal

Technological
Disguised
Fricitional

Cyclical

Strucutral

4.

Transport occupies an important place in the economic as well as social

development of a country. It is the backbone of the modern economy. The
importance of transport in India is as follows:

 Trade expansion:
 Sound transport system helps smooth exchange of goods and services.
 It helps to expand trade and size of the market.
 Rapid industrial development:
 Transport facility of raw material, products, machinery etc. from one
place to another.
 It allows rapid industrialisation and promotion of economic growth.
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 Provide employment opportunities:

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  Transport creates a large number of employment opportunities.
 It helps to solve the problem of unemployment in rural areas by
supplying labourers to the industries.
 Network of trade:
 Transport creates a network for trade by bringing producers and
consumers closer with the help of different modes such as ports,
shipping, and cargo facilities.
 It increases foreign trade and helps in connecting the market from local
to national and national to the international level.
 Sectoral connections:
 Transport helps in linking different sectors of the economy.
 Primary, secondary and tertiary sector are connected by developing
input and output network among them.
 Reducing regional imbalances:
 Different regions are linked by transport facility.
 It promotes economic, social and cultural development of backward
region which helps to reduce regional imbalances.
 Development of tourism sector:
 Transport increases the scope of the tourism sector.
 It promotes tourism services at National as well as international level.
 It helps to earn foreign exchange.
 Standard of living:
 New and better quality of goods are available from faraway places and
other countries.
 Transport enables people to live and improved and a higher standard of
living.

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