Understanding Economic Development For Class 10 Economy Extra Question-answer

Q 1. Define GDP.

GDP or Gross Domestic Product is the total value of all final goods and services produced during a particular year in a country.

Q 2. What do you mean by per capita income?

The average income is the total income of the country divided by its total population. The average income is also called per capita income. Thus,

www.cbseinsights.com

Q 3. Define the term National Income.

National income is defined as the total value of all final goods and services produced with a country plus net factor income earned by foreign residents of India and income earned in the domestic economy by foreign nationals.

Q 4. Why is the total income of countries not used to make comparisons between them?

The total income of countries is not used to make comparisons between them because the population of different countries is different and does not give a clear picture if comparisons are made on this basis.

Q 5. What is the main criterion used by the World Bank in classifying different countries?

The World Bank uses average income or per capita income as a criterion for classifying different countries. World Bank publishes World Development Report.

Q 6. Name two things which you cannot buy with money ?

  • A pollution-free environment
  • A sense of security

Q 7. Why is Per Capita Income calculated in the US dollars?

The Per Capita Income is calculated in the US dollars because US dollar is considered as the medium of international exchange. It is accepted as method of payment across the world.

Q 8. Why is the total income of countries not used to make comparisons between them?

The total income of countries is not used to make comparisons between them, because the population of different countries is different and does not give a clear picture if comparisons are made on this basis.

Q 9. Give any two common developmental goals of the people.

Social equality, freedom, peace, pollution-free environment, improved health and literacy levels, awareness and control on population are common development goals of the people.

Q 10. Literacy rate measures the proportion of literate population in which age group?

The age group of 7 years and above.

Q 11. Which state of India has the lowest infant mortality rate?

Kerala  (In 2016, the infant mortality rate in the state of Kerala in India was about ten deaths per 1,000 live births.)

Q 12. Through which act is Right to Work implemented?

Right to Work is implemented through National Rural Employment Guarantee Act (NREGA) 2005.

Q 13. Average income is important but it has limitations while using it. Explain.

The following are the limitations while using the average income.

1It ignores the equitable distribution of income.

2It is impossible to come out to a well-defined conclusion about the real income of the people or nation.

3It does not reflect the standard of living of the people

Q 14. What is Human Development Index?

Human Development Index is a composite index of achievements of a nation in terms of three important variables, namely—longevity (Life Expectancy), knowledge (Literacy Rate) and standard of living (Gross National Income ) that determine the quality of life.

Q 15. What is meant by economic development? What are the two bases of measuring economic development of a country?

  • Economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating or retaining jobs and supporting or growing incomes and the tax base.
  • It is the increase in the growth and welfare of people, improvement of quality.
  •  In layman’s language it is a process, which makes people in general, better off by increasing their command over goods and services and by increasing the options open to them.
  • The two bases of measuring economic development of a country are as follows:-

HDI (Human Development Index)

Per capita income

Q 16. Name the report published by UNDP which compares countries based on the educational levels of the people, their health status and per capita income.

Human Development Report published annually.

Q 17. What would be the developmental goals for an adivasi from Narmada valley?

A permanent source of livelihood, access and control over resources, a local school to provide quality education to his/her children, etc.

Q 18. What term is used to describe the ‘average number of years a person is expected to live at birth’?

 Life Expectancy

Q 19. What do people seek besides better income?

Besides seeking more income, people also seek non-material things like equal treatment, freedom, security and respect of others. They resent discrimination.

Q 20. Which countries are called rich countries as per the World Development Report, 2017?

Countries with per capita income of US $ 12736 per annum and above in 2017, are called rich or developed countries.

Q 21. Which countries are called low-income countries as per the World Development Report, 2017?

 Countries with per capita income of US $ 955 or less are called low income or under developed countries.

Q 22. What was the per capita income of India in 2017? In which category would you place India high-income countries or low-income countries?

In 2017, the per capita income of India was just US $ 1820 per annum. On the basis of this, we would place India in low-income countries.

Q 23. What would be the developmental goals/aspirations for an urban unemployed youth?

A job with a handsome salary, a peaceful working atmosphere, opportunity to learn, a sense of security and freedom, etc.

Q 24. Why does Kerala have a better Human Development Index ranking in comparison to Punjab? Explain with three reasons.

Kerala has a better Human Development Index ranking in comparison to Punjab even though Punjab has a higher per capita income in comparison to Kerala because of the following reasons.

  • Education: Kerala has a higher level of literacy rate than Punjab. In fact, the literacy rate of Kerala is the highest in India. In Kerala, the literacy rate is ninety-one per cent which is almost as high as that of China. This is mainly because education has been made available to everyone in Kerala whether they are upper caste or the lower caste. There is no bias in the field of education, which is one of the major reasons why Kerala has a better HDI than Punjab.
  • Health care: The health care facilities in Kerala are far better than those in Punjab. Kerala has over 2700 government medical hospitals, with 330 beds per 1,00,000 population which is the highest in India, making it achieve a higher ranking in the HDI.
  • Politics: The political parties in Kerala have taken steps for genuine welfare of the people and have invested intelligently and methodologically in the field of health and education. The government of Kerala has even worked for the land reforms in the State to support the people.

Q 25. What is the advantage of per capita income? Mention any one.

It helps to compare the development of countries as per capita income and tells us whether people in one country are better off than others in a different country.

Q 26. What is Human Development Index? Which organization measures the HDI? Explain the three major indicators of the HDI.

Human Development Index is a tool developed by the United Nations to measure and rank countries based on the level of social and economic development. The HDI makes it possible to track changes in development levels from time to time and to compare development levels in different countries. The concept of HDI goes beyond income and growth to cover overall development with the object of improving the conditions of people from all angles.
The organization that measures the HDI is the United Nations.

Three major indicators of the HDI are as follows.

  • Health: Without proper health facilities, no matter how much a country earns, it will not be able to provide basic facilities to its people.
  • Education: Over the past few decades, education has become an important factor in leading a quality life. So, if the country has high income but the literacy rate is low, it cannot be considered developed.
  • Security: More than income, people want to have a secured life. A country should be able to provides it’s citizens a sense of security.

Q 27. What may be the development for one may be the destruction for the other.” Explain the statement with appropriate examples.

  • Yes, it is true that what may be called development for some may turn out to be destruction for the others.
  • The Sardar Sarovar dam built over the Narmada river led to a major evacuation of the tribes near the Narmada river and as a result the tribes lost their land and homes. This development of Sardar sarovar dam turned out to be a destruction for the tribes.
  • On the border of Madhya Pradesh and Uttar Pradesh, in the Singrauli region, over 200,000 people have been displaced on different occasions.
  • First by the Rihand dam, then by a series of thermal power plants of the National Thermal Power Corporation.
  • Singrauli has illuminated the lives of many in the urban centres, but has seen its natives groping in endless darkness, grappling to overcome the trauma of displacement. So the development in Singrauli led to destruction of its people.
  • Multinational companies take away the land of the farmers for the construction of industries. It may be beneficial for boosting production but at the same time it causes loss of cultivable land and livelihood of the farmers. Various movements have been launched against the acquisition of land from the farmers.

Q 28. What do final goods and services mean?

The various production activities in the primary, secondary and tertiary sector produce large number of goods and services for consumption and investment are final goods and services.

Q 29. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

The criterion used by the UNDP for measuring development is different from the criterion used by the World Bank in the following ways.

  • The UNDP compares the development of the countries on the basis of literacy rate, gross enrolment ratio and health status of their people. On the other hand, the World Bank compares the development of the countries on the basis of per capita income or average income.
  • On the basis of the comparison done by the UNDP, the countries are ranked as first, second, third… whereas on the basis of the comparison done by the World Bank the countries are divided into three categories:
    1. Rich or developed or high-income countries
    2. Middle-income or developing countries
    3. Poor or underdeveloped or low-income countries
  • The UNDP has a broader concept of development and the World Bank has a narrow concept of development.

Q 30. Why is sustainable development essential? Give one reason.

Sustainable development aims at economic development without damaging the environment and at the same time conserving for the future. Resources are to be used in such a way that they are not overexploited.

Q 31. What is meant by national development?

National development is development of country in all the aspects which includes increase in per capita income, improvement in people’s living standard, availability of proper health facilities, education, pollution-free environment, etc.

Q 32. What is meant by sustainability of development?

This signifies that the level of economic development of a country should be maintained or sustained in all the years. Development in the present should not compromise with the needs of the future generations.

Q 33. “People have conflicting development goals”. Support the statement with suitable example.

  • It is true to say that people have conflicting developmental goals. What may be the development for one may not be for the other.
  • Different people have different interests, life situations and state of mind. They visualize things, actions, etc. according to their level of understanding.
  • For example, the construction of a flyover to reduce the congestion and traffic jams may be a development goal especially for the daily commuters. But for the construction of the flyover, surrounding houses, shops, etc. need to be demolished which may not be like by the occupants of these shops and houses. This may not be a development goal for them.

Q 34. Define:

1. Infant mortality rate
2. Literacy rate
3. Net attendance ratio
4. BMI

1. Infant mortality rate. It indicates the number of children that die before the age of 1 year as a proportion of 1000 live children born in that particular year.

2. Literacy rate- It measures the proportion of literate population in the 7 and above  age group. 

Literate  As per census 2011 , a person aged seven and above, who can both read and write with understanding in any language.

3. Net Attendance ratio- It is the total number of children of age group 14 and 15 years  attending school as a percentage of total number of children in the same age group.

4. BMI stands for Body Mass Index. It is calculated by dividing the weight of a person in kilograms (kgs) by the square of his/her height in metres. It is an indicator of the level of nourishment in adults.

Q 35. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.

1. Total income is not a useful measure for comparison between countries. Since countries have different populations, comparing total income does not tell what an  average is likely to earn. Hence, we use average income which is total income of the country divided by total population.
2. The defect of average as a measure is that it does not show the distribution (dispersion) of income between the rich and the poor.
3. Two countries may have the same average income but in one country almost every family may enjoy more or less the same kind of income, whereas in the other, some may be very rich and others very poor. The disparity between rich and poor is an important feature the average measure (per capita income) does not consider.
Example: In terms of development, we can take the example of India, where the metro towns are full of high-rise buildings and shopping malls while some villages have not yet been provided with a basic necessity like electricity.

Q 36. What is per capita income? Mention any two limitations of per capita income as an indicator of development.

The total income of a country divided by its total population gives the Per Capita Income.
Money cannot buy all the goods and services that are needed to live well. So income by itself is not a completely adequate indicator of material goods and services that citizens are able to use. For example, money cannot buy a pollution-free environment or ensure that one gets unadulterated medicines, unless one can afford to shift to a community that already has all these things.

Q 37. Kerala, with lower per capita income, has a better human development ranking than Punjab.   Hence, per capita income is not a useful criterion at all and should not be used to compare States. Do you agree? Discuss.

Per capita income is not a useful criterion at all to measure the human development ranking of a state. High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life. Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a good standard of living. In order to achieve these, joint efforts have to be made by all members of a community, be it rich or poor.
Kerala ranks higher compared to Punjab even with a lower per capita income because—
1. mortality rate is lower
2. literacy rate is higher and
3. total number of children attending school (Classes I-V) is higher.

Q 38. On the basis of which three indicators of HDI 2017 Sri Lanka has better rank than India?

Three indicators of HDI 2017 in which Sri Lanka has better rank than India:
1. Per capita income—The per capita income of Sri Lanka in US dollars was 9250 US dollars while that of India was 5150 US dollars.
2. Life expectancy at birth—The life expectancy at birth for Sri Lanka was 74.3, higher than that of India at 68.8.
3. Gross enrolment ratio for three levels—Sri Lanka had Gross Enrolment ratio of 69 while that of India was 61.

Q 39. What is sustainable development? Suggest any two ways in which resources can be used judiciously.

 Sustainable development is a pattern of development that promises the use of resources in a way that meets human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come.
In basic understanding, like today we are able to use the resources given to us, the future generations should also be able to use them for which we need to keep a tab on our usage and use the resources judiciously.
Today, we need to fuel the concept of sustainable development to make sure that resources are also available for the future generations.

Resources can be used judiciously in the following manner:-

  • Using bicycle or walking for short distances rather than using a two wheeler or four wheeler can help in saving fuel and also will help in reducing air pollution.
  • Urbanization without deforestation can help us to sustain the natural environment.
  • By using CNG in place of petrol, we can help in reducing air pollution.
  • Judiciously using water resources and not polluting them will help us to preserve our water resources.

Q 40. ‘Conflicting goals can also be developmental goals’. Elaborate with examples.

All persons do not have the same notion of development or progress. Each one of them seeks different things. The seek things that are most important for them, i.e., that which can fulfill their aspirations or desires. In fact at times two persons or groups of persons may seek things which are conflicting.
A girl expects as much freedom and opportunity as her brother and that he also shares in the household work. Her brother may not like this.
To get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced, such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.  

Q 41. What are common developmental goals? Give any two suitable examples of common developmental goals.

There are certain goals which are the same or common for all. These are common developmental goals.
The developmental goals that people have are not only about better income but also about other important things in life. More income or more material goods do not always give us a good quality life.
There are other aspects such as equal treatment, freedom, security, opportunity to learn, good working conditions, pollution-free atmosphere, job security and good social life which are very important for a good quality life. Money or material things that one can buy with it, is one factor on which our life depends. But quality of our life also depends on non-material things, for example, the role of our friends in our life which cannot be measured but mean a lot to us.  

Q 42. “Money cannot buy all the goods and services that one needs to live well” Do you agree with this statement? Justify your answer with any three suitable arguments.

Yes, I agree with the statement because money income and material goods alone are not an adequate indicator of a good quality of life. Money cannot buy all the goods and services one needs to live well.

  • Money cannot buy a pollution free and dean environment with fresh air.
  • It cannot protect us from infectious diseases and guarantee good health for us.
  • Money cannot assure that medicines available in the market are not adulterated.
  • To live well one need non-material factors such as equal treatment, freedom, security, equal
    opportunity to learn, a pollution free environment, good and safe working conditions etc.

Q 43. Apart from income, which other six things people look for as important aspects of our lives?

 High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life. Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, job security, good working conditions, etc. are essential for a good standard of living.

Q 44. Why do people look at a mix of goals for development? Explain.

Though income is one of the most important components of development, but there are other important goals which people look at for development—
1. People also seek things like equal treatment, freedom, security and respect.
2. Women need a safe and secure environment to take up a variety of jobs or to run businesses as entrepreneurs.
3. People seek a pollution free environment.
4. Students seek better education and equal opportunities to learn.

Q 45. Why do different persons have different notions of development? Which of the following  explanations is more important and why?

(a) Because people are different.
(b) Because life situations of persons are different.

  • The correct explanation is ‘Because life situations of persons are different.’
    Developmental goals are different for different categories of people because of their different aspirations.
  • Aspirations are based on their needs. At times people may have conflicting developmental goals also. What may be development for one may not be development for another. It may even be destructive for the other.
  • Example, Industrialists may want construction of more dams for more electricity, but this may lead to displacement of tribals who live in those areas and thereby disrupt their lives.
  • Example, The inhabitants of Nandigram in West Bengal are mainly agriculturists and their aspirations are to see development in the field of agriculture, whereas to some it may appear that industrial advancement is more necessary for national development.

Q 46. What does HDI stand for? Explain the main criteria of measuring HDI according to UNDP Report of 1990.

HDI Stand for Human Development Index.

Main criteria of measuring HDI:

1. HDI published by UNDP compares countries based on the educational levels of the people,   their health status and per capita income.

2. HDI determines the rank of a country by its overall achievement in three areas, i.e., life expectancy, educational level and per capita income.

3. Many improvements have been suggested in calculating HDI and many new components have been added to Human Development Report.

4. Pre-fixing Human to Development, it has made it clear that what is important in development is what is happening to citizens of a country, i.e., the health and well being of the people is most important.

Q 47. Distinguish between developed and developing countries.

 The following differences can be observed between developed and developing countries:

           Developed Countries            Developing Countries
(i) Developed countries have more
average income, higher per capita

income and better standard of life.
(i) Developing countries have
low
average income, less per capita
income and low standard of life.
(ii) People of developed countries
enjoy public facilities without any
discrimination.
(ii) People of developing countries
lack public facilities.
(iii) Developed countries invest in
human resources especially in the
field of education and health.
These people become asset and
contribute in the further
development of their country.
(iii) Developing countries are not in
position to invest much in human
resources. As a result, they become
liability to their country. Also, they
lag behind from those living in
developed countries in several
ways.
(iv) Literacy rate is quite high in
developed countries. Needless to
say that educated people are highly
productive and play important role
in their country’s development.
(iv) Literacy rate is usually low in
developing countries because a
bulk of population is deprived of
education.
(v) Example; America, United
Kingdom, France, etc;
(v) Example; India, China, etc.

Q 48. Explain with examples that there are other important development goals also besides income.

More income or more material goods do not always give us a good quality life. There are other aspects such as equal treatment, freedom, security, opportunity to learn, good working conditions, pollution-free atmosphere, job security and good social life which are very important for a good quality life.
Money or material things that one can buy with it, is one factor on which our life depends. But quality of our life also depends on non-material things, for example, the role of our friends in our life which cannot be measured but mean a lot to us. Another example, if we get a job in a far off place, before accepting it we would try consider many factors apart from income such as facilities for our family, working atmosphere, or opportunity to learn. Similarly, for development, people look at a mix of goals. It is true that if women are engaged in paid work, their dignity increases. However, it is also the case that if there is respect for women there would be more sharing of house work and greater acceptance of women.

The developmental goals that people have are not only about better income but also about other important things in life.

Q 49. Explain any five fields other than income where development is needed.

 Fields other than income where development is needed:
1. Education: The government must provide adequate education facilities in all rural  and urban areas. The government must necessarily focus on education for girls so
 that all girls are able  to acquire atleast secondary level schooling. Running proper schools and providing quality education, particularly elementary education, is the duty of the Government.
2. Health. Basic health care facilities are a must for all. Establishment of government hospitals, clinics and dispensaries, especially in rural areas, to provide subsidized  and unadulterated medicines to the poorer sections of society.
3. Nutrition. An effective Public Distribution System—proper functioning of ration shops and equitable distribution of food grains is very essential.
4. Transportation. A well developed public transport system to make it easy for general public to commute.
5. Electricity. It is the duty of the government to provide electricity and water at reasonable rates to the common man and prevent him from exploitation by private companies.

Q 50. Explain with reasons why state of Punjab with a very high per capita income has a low literacy  rate.

  • Per capita income is not a useful criterion at all to measure the human development ranking of a state.
  • High per capita income is not the only attribute to a good quality life. Money cannot buy all the essential things required for a good life.
  • This can be seen in the case of Punjab which has a very high per capita income but a low literacy rate.
  • Having money in one’s pocket cannot buy all the goods and services that we need to live well. Money cannot ensure education and literacy.
  • Another reason for low literacy rate in Punjab could be the lack of free and compulsory educational facilities.
  • The government needs to open more schools and provide other facilities so that all children have a chance to study.
  • Pollution-free atmosphere to ensure good health, protection from infectious diseases, lowering of mortality rate, promotion of literacy, etc. are essential for a good standard of living.

In order to achieve these, joint efforts have to be made by all members of a community, be it rich or poor.