Revision

What is the importance of statistical data in economics ? (March 2007) Ans. Statistical data is important in determining the pattern of consumption and production, it helps the government in taking long term decision; helps in determining the size of economic events in the various sectors of the economy such as agriculture, industry, services, foreign trade and use of factors investment ratio and labour inputs in the economy. It helps in understanding the size and intensity of economic event

What is comparative study ? Ans. By comparing more than one type of information in the context of time, place and other factors, when any conclusion or interpretation of any event is arrived at, then it is known as the comparative method of study. The comparative study in economics uses statistical information to arrive at a rational

What is logical analysis ? Ans. When the statistical information derived by using statistical and mathematical methods is used for analyzing economic problems of society, it is logical analysis. The census studies conducted every decade, 'help economists and sociologists to predict the state of population and employment in coming years and help in suggesting measures to combat them in future.

What is the importance of graphs and diagrams ? Ans. The comparative and analytical study of any information relating to various aspects of economy can be effectively represented using various types of graphs and diagrams. A form and intensity of an economic problem as well as changes taking place therein can be explained or presented very clearly through graphs and diagrams.

What is included in improvement in the quality of life of people ? (March 2006) Ans. The improvement in the quality of life of the people includes the following : (1) There should be an increase in the literacy rate. (2) The health and hygiene of the people should be improved. (3) Pure potable drinking water should be made available. (4) Proper facilities for the disposal of garbage and other wastes must be made available. (5) The advantage of development should be made available to the common people. (6) Development should not be at the cost of future generations.

Which are the three indicators of economic development ? Ans. The important indicators of economic development are : (1) Rise in national income, per capita income. (2) Improvement in the quality of life. (3) Improvement in Human Development Index.

What are natural resources ? What are the different kinds of resources ? Ans. Natural resources are the resources available to the economy from the nature. In other words, they are resources available without any human effort Natural resources include, water, air, land, minerals, etc. Renewable an Nonrenewable natural resources are the two different types of resources.

Define Sustainable Development. Ans. It means satisfying the needs of the present generation without affecting the efficiency of satisfying the needs of the future generations. According to UNESCO ,sustainable development is "Every generation, born in this world, has inherited situations of water, air and land, should leave them as pure and unpolluted as the received it."

Explain : 'Rich India is inhabited by the poor people.' Ans. India has large deposits of natural resources. But due to the absence proper technology or due to the lack of financial resources to install such technologies, efficient use of these natural resources cannot be made. Thus, owing to the inefficient use of such natural resources like water resource and mineral resource, it is said that, 'Rich India is inhabited by the poor people.'

What is infrastructure ? Ans. Infrastructure is that system which shows a collection of facilities which are extremely essential for the development of a country. The services provided by the infrastructure facilitates the flow of goods and services for e.g. railways, dams, electricity, transportation, communication, etc. These services are divided into two parts - economic infrastructure and social infrastructure.

What are the main sources for generation of electricity ? Ans. The three main sources for the generation of electricity are coal (Thermal), water (Hydro) and Nuclear. In the beginning of the planning, we laid stress on generating hydroelectricity, but from the middle of the seventh decade of the 20th century, we started utilizing coal to

Why is communication service necessary ? What are the main means of communication ? Ans. Communication helps in establishing relationship between the producers and consumers, widening the markets, etc. It helps in trade and increases the pace of commercial transactions. The different modes of communication are (1) Postal Services, (2) Private Courier Services,

What is Economic Strategy ? Ans. The term strategy or policy is related with the attainment of objectives an goals. To attain economic prosperity, government plans for future taking into consideration the available resources and the time factor. The government has to solve a number of economic and social problems. Rational thinking about allocating these resources to different segments of economy then becomes inevitable.

What are public sector units ? Ans. These are those economic/industrial activities which are financed an managed by the state - central government, state government or local bodies like the Railways, P & T, Atomic energy, Ordnance factories, Banking and Insurance sector etc. They are supposed to be less efficient than

State the main objectives of planning. Ans. The main objectives of planning are (1) Economic growth, (2) Self reliance, (3) Reducing unemployment, (4) Reducing income inequalities, (5) Eradication of poverty, etc.

What is the difference between selfreliance and self-sufficiency ? (March 2006, 2007) Ans. The concept of self-sufficiency is connected with closed economy. Selfsufficiency means such a condition where the country produces all the commodities and services it requires and there is no foreign trade. In self-reliance, necessary technology, tools, skilled labours are imported for economic growth,. For this, we need to import and export. It is against foreign aid but not against foreign trade

In which phase of demographic transition, population explosion takes place? Ans. In the second stage, there is rapid decrease in the death rate while there is slow decrease in birth rate, resulting in a large increase in population. With the rise in the population growth, rate in this stage, the second state of the. demographic, transition is called the stage of'Population Explosion'.

'Population increase affects productivity of agriculture adversely'. Explain. Ans. There has been a continuous increase in the supply of labour due to increasing population. This resulted in decline in the productivity of labour. Lack of employment opportunities in non-agricultural sector has resulted in the increased pressure on the agricultural employment. In India, due to this factor, the net per labourer availability of cultivable land has declined.

What is cyclical unemployment ? Ans. The unemployment in a developed country decreases or increases with changes in economic activity. In prosperity, production and employment increases and less number of people remain unemployed. In depression, production and employment decreases and hence large number of people remain unemployed. This is cyclical unemployment and it happens in market economy.

What is frictional unemployment ? Ans. When the new technology replaces old one, labour remains unemployed for some time. They need time to acquire new skills to handle and get adjusted to the new technology or new jobs in other sectors. So they are unemployed for sometime. This is frictional unemployment.

. 'It is difficult to measure disguised unemployment.' Explain. Ans. The special characteristics of this type of unemployment is that a person is absolutely employed, yet he is unemployed in reality. That is why it is called disguised unemployment. The marginal productivity of the labour is zero. Here more persons are employed than actually needed for doing a particular job.

What is Environmental-friendly technology Ans. During the economic activities, environment degenerates as there is pollution. But during this process of economic activities such technology should be adopted which harms the environment the minimum. This is Environmental friendly technology. Industries must be encouraged to use such technology so that there is little

What is Environmental sink ? Ans. In the process of production and consumption in economic activities, some waste is accumulated. All these wastages do not create difficulties for us because of environment. Some waste is absorbed in the environment. This is the sink. The environment has capacity to absorb this waste. Whatever is not absorbed by the

What is 'Emmission Tax' ? Ans. During the production of commodities and services, some waste is created. Industrial units use land, water and air for its sink, and they need to bear cost, pay price for polluting the environment. This

What is'Money order'economy ? (March 2006, July 2006) Ans. The migrated people employed in various occupations in the cities share a portion of their earned income with their family members in rural areas. This improves the standard of living of people in rural areas. This is 'money order economy'. The remittances from Keralities working in Gulf countries have contributed

Urbanization is a coin with two sides. Ans. Urbanization has both positive and negative effects. Urbanization generates employment opportunities, reduces poverty, increases education and health services etc. It also creates problems like creation of slums, hutments, growth of unhygienic areas, scarcity of housing, scarcity of potable drinking water, etc.

Explain the concept of poverty line. (July 2006) Ans. It is an arbitrary line which indicates the minimum amount of income or expenditure which person requires for his or her survival

'Health services can be considered as a pre-requisite for economic development.' Explain. (March 2006, 2007) Ans. Healthy workers can be considered as a pre-requisite for any country's economic development. A country's health and economic development has a special relation which can be understood by the following points :

(2) Due to sickness, a person cannot work properly. As they are not able to attend duties, it has unfavourable effects on production. (3) When a person's health improves, his average life expectancy also increases, and then the person has to think of his life after retirement and has to increase his savings which increases income of the people

How can be inequality in female male'be reduced ? (March 2006) Ans. Three important steps are necessary to reduce disparity in female - male ratio : (1) Female foetus should be protected at all cost. (2) The daughter should be given nutritious food. (3) The daughters should be given education.

. 'Poor families in India consider children as asset, not as a liability.' Explain. (March 2006) Ans. The maintenance expenditure of children in poor families is very less. They spend less on education, health, and clothing of their children. On the other hand, children begin to work and contribute to family's earning from an early age. The marginal benefit of child is more than the marginal cost to the family. Hence poor people and families have a large-sized families.

Define Urban area (city) . (March 2007) Ans. The area where there is municipality, corporation, cantonment board or notified town area committee is known as town or city. Other areas where the other following three conditions are fulfilled is known as city or town : (a) where the population is more than 5,000 people, (b) where its 75% or more working population gets employment from nonagricultural sector and (c) where the density of population per

Which expenses are included in social organization cost ? (March 2007) Ans. These costs includes : cost to maintain standard of living and expenses on education, health and human resource development. Efficient, healthy and trained labourers are required for the development of the country

What is Mixed Economy ? (March 2007) Ans. In this economy, there is coexistence of both private and public sectors. Both are complementary to each other. The main objective of public sector is social welfare, whereas the main objective of private sector is profit making. Both sectorsoperate under the control of the state.

When is population census survey conducted in India ? When was the last population census conducted ? (March 2007) Ans. After every 10 years, the population survey is conducted in India. The last census survey was conducted in 2011.

Explain the statement: 'There is a definite relationship between economic development and environment.' (March 2007) Ans. In the initial phase of economic development, due to economic activities, the problem of pollution arises. Pollution of air, water and land increases. But in later phase of development, people and government become aware of the hazards of pollution of environment. Pollution free and eco-friendly technology adopted. Steps are taken to safeguard environment

How inequality in female-male ratio be reduced ? (July 2006) Ans. Equal opportunities are necessary to improve the social status of women. Female foetus should be protected at all cost, daughters should be given nutritious food and good education. They should be given opportunity for employment. Healthy and educated women can fight against injustice in the society. Social evils like Dowry system, Sati system must be completely abolished.

Explain in short the unemployment in developed countries. (July 2006) Ans. In developed and developing countries, different forms of unemployment are found. In developed countries, usually cyclical or frictional unemployment is found. Cyclical unemployment arises due to fluctuations in opportunities of employment on account of speculative trends of market. When old technology is replaced by new capital dominated technology, workers are rendered jobless. This is frictional unemployment.

State only the different forms of commercial and noncommercial energy. (July 2007) Ans. Coal, petroleum and electricity are the commercial sources of energy. Fuel wood, vegetation waste and dried dung cakes are non-commercial sources of energy.

What is meant by environmental policy ? Show only the name of its main components. (July 2007) Ans. Environmental policy aims at bringing about a change in the pattern of production and consumption so that the difference between desired level of environment and actual level of environment is minimized. Therefore a policy that minimizes pollution and does less harm to wild animals is required. The main components of environmental policy are decentralized policy, centralized policy, price rationing and quantity

Explain in brief the reasons of High Birth Rate. (March 2006) Ans. Birth rate can be defined as number of children born per one thousand population during one year. The following are the reasons for high birth rate in India: (1) Low literacy : The relationship between education and population growth is complex. This applies especially to female education in the country. The importance of small family is not understood effectively because of inadequate education. As a result there are large families. Illiteracy and low education amongst women is responsible for high birth rate in India. The level of female education and the number of children in a family has inverse relationship. (2) Low level of income : The law 'more hands fetch more' maxim is used as justification for additional income for family in the future. If the level of income of family is low, then the

(3) The age group of the population : In India, because of marriages taking place at an early age, the child bearing period of women is long. The proportion of unmarried women in total child bearing women is very small. (4) Desire for male offspring : The Indian society is male dominated. It is a belief that a male child saves the parents from going to hell. The desire for having a male child increases the size of a family. (5) Ignorance of family planning methods and inadequacy of investment : Poor knowledge regarding various tools and techniques for family planning and their inadequate availability is also responsible for high birth rate in our country.

Write a brief note on : Suvarna Jayanti Gram Rojgar Yojana. Ans. This scheme has been started from April 1999. Families which are living below the poverty line in rural areas are target groups of this. The objective here is to enlarge self employment by sharing labour with one another through 'selfhelp groups' of 10 to 12 members who can distribute / share work with, as well as learn and encourage each other. They try to increase their bargaining power and abilities by training persons, planning and constructing infrastructure, providing bank loans, subsidies and market support. In selfemployment, opportunities are reserved - 50% for Schedule Tribes, 40% for women and 3% for handicapped. In these schemes, 30% of project cost within the limit of Rs. 7,500 is provided to Schedule Castes andSchedule Tribes. 50% of expenses of total project as a subsidy within the limit of Rs. 10,000 is provided to handicapped. The amount of subsidy for

Write a short note on : Suvarna Jayanti Sheheri Yojana. Ans. This scheme was introduced in the year 1997 by amalgating the schemes started in 1989 under Nehru Yojana. The following two main programmes are included in it: (1) Self-employment programme for urban areas. (2) Wage employment programme for urban areas. Under this programme, efforts are made for the development of the poor women and children. There is a provision to provide 50% subsidy to poor women for self-employment. The expenses

Write a short note on : Employment Guarantee Scheme. (July 2007) Ans. Under this scheme, the rural poor, below poverty line, are provided additional employment. Through this employment, efforts are made to create permanent collective assets which can provide permanent employment. This includes minor irrigation, recharging the sub-soil, water supply, and deepening of village tanks. This scheme is for all rural poor and they are paid minimum wages. In this programme, preference is given to parents of those child labourers who are removed from hazardous jobs. In 1997-98, this scheme was implemented in nearly 5,448 gram panchayats. Over and above this scheme, various other schemes are also implemented to provide wage employment in the rural areas. To provide employment to unemployed in the poorest of regions, Jay prakash Employment Guarantee Scheme was presented in 2002-03. In all these poverty

Explain the meaning of Absolute Poverty. (March 2007) Ans. The people in the economy who are incapable of even satisfying their primary necessities like food grains, cereals, milk, vegetables, clothes, etc. are called absolute poor people. This concept puts a minimum value of an individual consumption expenditure or income which a person should attain for his / her survival. This is called 'Poverty line'. A measure of minimum income level is fixed for countries of the world for international comparison. Accordingly a person whose daily income is less than 2 $ is considered as a poor person and a person whose daily income is less than 1 $ is called as a very person.

Write a note on : Public Distribution Scheme. (March 2006, July 2006) Ans. The government has provided food security to the poor families through the public distribution scheme, the integrated child development scheme and mid-day meal scheme. In 1951, the per capita availability of food grain was 394-9 gm per head which reached to 414-1 gm per head in 2001. In spite of this, due to poor purchasing power, many people suffered from malnutrition and hunger. The government has built up buffer stock of food grains to meet this crisis situation. As a consequence, it has become easier to provide food grains to poor at a fair price. By the end of March 2003, the government had a buffer stock of 361-93 lakh tons. The government runs nearly 4 lakh fair price shops in the country. Over and above, the buffer stock is used to provide food grains to poor under various schemes such as Antyodaya, total rural employment scheme etc. For reorganizing distribution with development, government has