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Namma Kalvi

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10

SOCIAL SCIENCE
Volume- II

ECONOMICS

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Ganga ECONOMICS UNIT - 3

UNIT
FOOD SECURITY AND NUTRITION
3
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BOOK EXERCISE

I Choose the Correct Answer

1. __________ of food is physical availability of food stocks in desired quantities,


which is a function of domestic production, changes in stocks and imports.
a) Availability of food b) Access to food
c) Absorption of food d)
None Ans: a) Availability of food
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2. Buffer stock is the stock of food grains, namely wheat and rice, procured by the
government through the __________
a) FCI b)
Consumer Cooperatives
c) ICICI d)
IFCI Ans: a) FCI
3. Which is correct?
a) HYV–High Yielding Varieties c) MSP–Minimum Support Price
d) PDS–Public Distribution System e) FCI–Food Corporation of India
a) i and ii are correct b) iii and iv are correct
c) ii and iii are correct d) All are correct Ans: d) All are correct
4. __________ extended assistance through its Public Law 480.
a) United States of America b) India
c) Singapore d)
UK Ans: a) United States of America
5. __________ revolution was born in India paving way for self sufficiency in food
grain production.
a) Blue Revolution b)
White Revolution
c) Green Revolution d)
Grey Revolution
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Ans: c) Green Revolution


6. __________ is the only state in India to adopt universal PDS.
a) Kerala b) Andhra Pradesh
c) Tamil Nadu d)
Karnataka Ans: c) Tamil Nadu

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7. __________ is the process of providing or obtaining the food necessary for health
and growth.
a) Health b)
Nutrition
c) Sanitation d)
Security b) Nutrition

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8. Tamil Nadu Integrated Nutrition Programme was started in __________
a) 1980 b) 1975 c) 1955 d) 1985 Ans: a) 1980
9. __________ status is one of the indicators of the overall well-being of population
and human resources Development.
a) Health b)
Nutritional
c) Economic d)
Wealth Ans: a) Health
10. Tamil Nadu Health System Projects has launched _________ service at free of cost.
a) 106 ambulance b)
108 ambulance

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c) 107 ambulance d) 105 ambulance Ans: b) 108 ambulance

II Fill in the Blanks

1. __________ foundation from USA introduced HYV in India. Ans: Ford


2. __________ is an important indicator of nutrition deficiency. Ans: Under weight
3. In the year __________ National Food Security Act was passed by the Indian Parliament.
Ans: 2013
4. __________ play an important role in the supply of quality goods at responsible rates to
common people. Ans: Consumer co-operatives
5. __________ is the value of currency expressed in terms of the amount of goods and
services that one unit of money can buy. Ans: Purchasing power

III Match the Following

1. Consumer cooperatives - a) Subsidized rates


2. Public Distribution System - b) 2013
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3. UNDP - c) Least poor region


4. National Food Security Act - d) Supply of quality goods
5. Kerala - e) United Nations Development Programme
(Ans: 1 – d, 2 – a, 3 – e, 4 – b, 5 – c)

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IV ASSERTION AND REASON

1. Assertion (A) : Purchasing power increases, price decreases and vice versa.
Reason (R) : The production of goods decline, the price of goods increases
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and then the purchasing power is affected.


a) A is correct, R is false
b) Both A and R are false statements
c) A is correct but R is not a correct explanation
d) A is correct, R is the correct explanation of A
Ans: d) A is correct but R is the correct expiation of A

V Answer in short

1. Define food security according to FAO.


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The United Nation’s Food and Agriculture Organisation defines food security as follows:
“Food security exists when all people, at all times, have physical, social and economic
access to sufficient, safe and nutritious food which meets their dietary needs and food
preferences for an active and healthy life.”
2. What are the basic components of food and nutrition security?
The term was broadened to include the three basic components of food and nutrition
security.
They are –
¾¾ Availability of food
¾¾ Access to food and
¾¾ Absorption of food:
3. Explain ‘ship to mouth’ phenomenon.
¾¾ The recurrent droughts experienced by India pushed her to be dependent on imports
of food grains.
¾¾ India had to plead for food grains from richer countries at concessional rates.
¾¾ United States of America extended assistance through its Public Law 480 (PL 480)
scheme to India during early 1960s.
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¾¾ This situation was popularly known as ‘Ship to Mouth’ existence


4. What is the role of FCI in Green Revolution?
¾¾ Buffer stock is the stock of food grains namely wheat and rice procured by the
government through the Food Corporation of India (FCI).
¾¾ The FCI purchases wheat and rice from the farmers in states where there is surplus
production.
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¾¾ The farmers are paid a pre-announced price for their crops. This price is called
Minimum Support Price (MSP). The MSP is declared by the government every year
before the sowing season to provide incentives to farmers for raising the production
of these crops.

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¾¾ The purchased food grains are stored in granaries.
¾¾ This also helps resolve the problem of shortage of food during adverse weather
conditions or during the periods of calamity.
5. What are the effects of Green Revolution?
¾¾ The main benefit of Green Revolution was the increase in the production of food
grains.
¾¾ There was a drastic reduction in the import of food grains due to Green Revolution.
¾¾ The crop area under high yielding varieties of wheat and rice grew considerably
during the Green Revolution.

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¾¾ It created plenty of jobs not only for agricultural workers but also industrial workers
by creating related facilities.
6. Write a note on Differential Universal PDS and Targeted PDS.
¾¾ The nature, scope and functioning of PDS varies from state to state. Tamil Nadu has
adopted an ‘Universal’ PDS, the rest of the states in India had a ‘Targeted’ PDS.
¾¾ Under universal PDS all the family ration card holders are entitled to the supplies from
PDS. In the targeted PDS, the beneficiaries are identified based on certain criteria and
given their entitlements, leaving out the rest.
7. Write a short note on purchasing power.
¾¾ Purchasing power is the value of a currency expressed in terms of the amount of
goods or services that one unit of money can buy. Price increases purchasing power
declines and vice versa.
¾¾ The factors that affects purchasing power are
i) Over population ii) Increasing prices of essential goods
iii) Demand for goods iv) Price of goods
v) Production and supply of goods vi) Poverty and inequality.
8. What are the main reasons for the New Agricultural Policy?
¾¾ The new agricultural policy was announced by the Central government in 2018. This
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policy states that the government has decided to remove export restrictions on most
organic and processed agricultural products.
¾¾ The main reason is to give an assurance that organic or processed agricultural
products will not be under any export restrictions such as export duty, export bans
and quota restriction.

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9. Write short note on multi-dimensional nature of poverty.


¾¾ The basic philosophy and significance of MPI is that it is based on the idea that
poverty is not uni-dimensional, and that it is rather multi-dimensional.
¾¾ Multi-dimensional poverty is made up of several factors that constitute poor people’s
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experience of deprivation such as health, education, living standards, income,


disempowerment, quality of work and threat from violence.
10. Write some name of the nutrition programmes in Tamil Nadu.
Some of the Nutrition Programmes followed in Tamil Nadu are-
¾¾ Purachi Thalaivar M.G.R. Nutrition Meal Programme
¾¾ National Programme of Nutritional Support to Primary Education
¾¾ Pradhan Manthri Gramodaya Yojana Scheme (PMGYS
¾¾ Tamil Nadu Integrated Nutrition Programme
¾¾ Mid-Day Meal Programme
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VI Answer in detail

1. Elucidate why the Green Revolution was born.


The Green Revolution in India refers to a period when Indian agriculture was converted
in to industrial system due to the adoption of modern methods and technology.
The Green Revolution with in India commenced in the early 1960s that led to an increase
in food grain production.

Causes of Green Revolution:


¾¾ The main cause for the Green Revolution is the growth of population in India. When
the population increased, there was a scarcity of food grains in India. India had to
plead for food grains from richer countries at concessional rates.
¾¾ Better irrigation facilities are responsible for green revolution. In 1965-66, 0nly 22
lakh hectares had irrigation facilities. It increased to 76 lakh hectares in 2002-03
¾¾ Advanced Machineries such as tractors, harvesting combines, tube wells and pumping
sets and threshers, etc helped the farmers to improve agriculture.
¾¾ The use of chemical fertilizers has increased the production of food grains to large extent.
¾¾ The HYV (High Yielding Varities) seeds have played a major role in increasing
agriculture production.
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¾¾ There was no arrangement to protect the plants against disease in previous years.
Now, it is changed.
¾¾ Proper arrangement of irrigation enables the farmer to grow more than one crop in a
year. Due to multiple cropping, productions food grains have increased tremendously.
¾¾ Above all, the government has made many efforts for agricultural development.
During Eight Five Year Plan (1992-97), Government has spent Rs. 590 crore on
agricultural development.
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¾¾ Green Revolution was born in the country to achieve self-sufficiency in food grain
production.
2. Explain Minimum Support Price.
¾¾ Minimum Support Price is a price fixed by an expert group for a particular crop by

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considering various costs involved in the cultivation of that crop.
¾¾ After announcing the MSP, the State will open procurement centres in places where
these crops are widely grown. However, the farmers are free to sell in the open
market if they get a better price for their crop produce.
¾¾ On the other hand, if the open market price is lower than the MSP, the farmers would
get an assured price (the MSP) by selling their produce to the FCI.
¾¾ Thus, with the implementation of MSP farmers are certain about the price they would
get at the end of the crop season.
¾¾ Further, farmers also get insulated against any price crash during the harvest season.
3. Elaborate the Public Distribution System.

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¾¾ The increase in food grain production need not result in increase in access to food
for all. So, the government took steps to distribute food grains at subsidised rates
through the Public Distribution System (PDS).
¾¾ The nature, scope and functioning of PDS varies from state to state. Tamil Nadu has
adopted an ‘Universal’ PDS, the rest of the states in India had a ‘Targeted’ PDS.
¾¾ Under universal PDS all the family ration card holders are entitled to the supplies from
PDS. In the targeted PDS, the beneficiaries are identified based on certain criteria and
given their entitlements, leaving out the rest.
¾¾ Both the Union and the State governments subsidised the supplies distributed through
PDS. The level and quantum of subsidy also varied across states.
¾¾ Subsequently, the National Food Security Act (NFSA) was passed by the Indian
parliament in 2013. The NFSA covers 50% of urban households and 75% of the rural
households.
¾¾ These households are known as priority households identified based on a set of
criteria. Priority households of this country now have the right to food supplied
through PDS.
¾¾ The Union government supplies rice at the rate of ` 3 per kg, wheat at the rate of `
2 per kg, and millets at the rate of ` 1 per kg under NFSA.
4. What are the factors affecting the purchasing power and explain them.
Xth Std

Factors affecting Purchasing Power:


i) Over population
¾¾ The population growth rate in India is high. Large population leads to increasing
demand, but supply was not equal to the demand.
¾¾ So, the normal price level will be going an higher. Automatically, it affect purchasing
power especially in rural population.
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ii) Increasing prices of essential goods


¾¾ There is a steady increase in the prices of essential goods.
¾¾ The continuous rise in the prices erodes the purchasing power and adversely affect
the poor people.
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¾¾ During 2015-16 an average rate of 2% flood inflation, the prices of pulses rose by
about 40%.
iii) Demand for goods
¾¾ When demand for goods increases, the price of goods increases then the purchasing
power is affected.
iv) Price of goods affect the value of currency
¾¾ When the price increases the purchasing power decreases and finally the value of
currency decreases and vice versa.
v) Production and supply of goods
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¾¾ The production and supply of goods decline, the price of goods increases, then the
purchasing power is affected.
vi) Poverty and inequality
¾¾ There exists a huge economic disparity in the Indian economy. The proportion of
income and assets owned by top 10% of Indian goes on increasing. This has led to
an increase in the poverty level in the society.
¾¾ Generally purchasing power is affected by poverty and unequal distribution of wealth
also.
¾¾ Purchasing power affects every aspect of economics from consumers buying goods
to investors and stock prices to a country’s economic prosperity.
5. Write briefly some of the important objectives of India’s agricultural policy.
Agricultural policy of a country is mostly designed by the Government for raising
agricultural production and productivity.
The following are some of the important objectives of India’s agricultural policy –
i) Raising the productivity of inputs
One of the important objectives of India’s agricultural policy is to improve the productivity
of inputs like, HYV seeds, fertilisers, pesticides, irrigation projects etc.
ii) Raising value-added per hectare
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Agricultural policy is to increase per hectare value-added rather than raising physical
output by raising the productivity of agriculture in general and productivity of small and
marginal holding in particular.
iii) Protecting the interests of poor farmers
Agricultural policy is proposed to protect the interests of poor and marginal farmers
by abolishing intermediaries. It can be achieved through land reforms, expanding
institutional credit support to poor farmers etc.
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iv) Modernising agricultural sector
The policy support includes the introduction of modern technology in agricultural
operations and application of improved agricultural inputs like HYV seeds, fertilizers etc.
v) Environmental degradation

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Agricultural policy of India has set another objective to check environmental degradation
of natural base of Indian agriculture.
vi) Removing bureaucratic obstacles
The policy has set another objective to remove bureaucratic obstacles on the farmers’
co-operative societies and self-help institutions so that they can work independently.
6. Discuss about the Multi-dimensional Poverty Index India and Tamil Nadu.
Multi-dimensional Poverty Index 2018 was launched by the United Nations
Development Programme (UNDP) and the Oxford Poverty and Human Development
Initiative in 2010.

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Multi-dimensional Poverty Index in India:
¾¾ India has reduced its poverty rate drastically from 55% to 28% in 10 years, with 271
million people moving out of poverty between 2005-06 and 2015-16.
¾¾ India still had 364 million poor people in 2015-16. It is the largest for any country
although it is down from 635 million in 2005-06.
¾¾ Out of the 364 million poor people, 156 million were children. This represents a 47%
decrease or 136 million fewer children growing up in multi-dimensional poverty.
¾¾ 80% of people belonging to ST were poor in 2005-06 and 50% of them were still
poor in 2015-16.
¾¾ Bihar with more than half its population in poverty was the poorest state in 2015-16.
¾¾ The four poorest states are Bihar, Jharkhand, Uttar Pradesh and Madhya Pradesh.
¾¾ Kerala, one of the least poor regions in 2006, reduced its MPI by around 92%.
Multi-dimensional Poverty Index in Tamil Nadu:
¾¾ Tamil Nadu has made a significant progress in poverty reduction.
¾¾ The districts in Tamil Nadu are classified into three categories. They are i) high-
poverty districts (more
¾¾ than 40% of the population living below poverty line), ii) moderately poor districts
(30% to 40%) and iii) low level poverty districts (below 30%).
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¾¾ After 1994, poverty has declined steadily in both rural and urban areas of Tamil Nadu.
¾¾ After 2005, the poverty reduction in this state has been faster than in many other
states in India.
¾¾ Tamil Nadu leads in the poverty alleviation programmes during 2014–2017.
¾¾ Government of India is implementing many policies and programmes to eradicate
poverty. These policies and programmes, if continued, will completely eradicate the
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poverty in the state.


¾¾ In future, Tamil Nadu can become a model of development in India.
7. Briefly explain the nutritional and health status of Tamil Nadu.
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¾¾ Nutrition plays a crucial role in human health and well-being. At the national level,
improvements in nutrition levels of the population have been unacceptably slow.
¾¾ A large number of Indian children are stunted. A substantial number of Indian children and
women are underweight, anaemic and suffer from micronutrient deficiencies.
¾¾ Tamil Nadu has played a pioneering role in bringing about significant changes in
the health and nutrition status of children under six years of age, pregnant women,
lactating mothers and adolescent girls.
¾¾ Successive budget of the Government of Tamil Nadu outlays for nutrition and health
are the highest in the country.
¾¾ The performance of the ICDS (Integrated Child Development Services) scheme and
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the Puratchi Thalaivar MGR Nutritious Meal Programme (PTMGRNMP) in Tamil Nadu
are considered one of the best in the country.
¾¾ The policy for “A Malnutrition Free Tamil Nadu” guides the state’s long-term multi-
sectoral strategy for eliminating malnutrition.
¾¾ The goal is “reducing human malnutrition of all types to the levels of best performing
countries”. In Tamil Nadu, ICDS is being implemented through 54,439 Child Centres
in 434 Child Development Blocks.
¾¾ With steady expansion into unreached areas, increasing coverage of marginalised
groups, enhanced allocations and enlarged scope of services, ICDS is now considered
to be one of the world’s largest programmes of its kind.
¾¾ To ensure that services reach the intended beneficiaries, the programme has been
universalised and convergence promoted with allied departments dealing with health,
education, drinking water, sanitation etc.
¾¾ The PTMGRNMP is considered to be the largest noon meal programme in the country
for combating malnutrition among children, increasing primary school enrolment and
reducing dropout rates. Other states in the country have modelled their noon meal
programmes along the pioneering efforts of Tamil Nadu.

VII Project and activity


Xth Std

1. Visit nearby “Uzhavar Sandhai” and collect the information about the functions of
market.
(Self Activity)
2. Collect information about health centre functioning nearby your location.
(Self Activity)
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ADDITIONAL QUESTIONS

I Choose the Correct Answer

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1. The __________ assistance through its Public Law 480 (PL 480) scheme to India
during early 1960s.
a) United States of America b) Union of South Africa
c) USSR d)
China Ans: a) United State of America
2. 
The yield of food grains has increased __________ fold between the time of
Independence and at present.
a) Two b) Three c) Four d) Five Ans: c) Four
3. The __________ of India had built huge storage houses and built buffer stocks of
food grains.

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a) Food Corporation b)
Reserve Bank
c) Green Revolution d)
Agriculture Ans: a) Food Corporation
4. The government took steps to distribute food grains at __________ rate through
the Public Distribution system.
a) Subsidised b)
Market
c) Profitable d) Free Ans: a) Subsidised
5. The National Food Security Act (NFSA) was passed by the Indian Parliament in
__________
a) 2000 b) 2010 c) 2013 d) 2015 Ans: c) 2013
6. Tamil Nadu became the __________ state in the country to implement the National
Food Security Act.
a) First b) Second c) Tenth d) Last Ans: d) Last
7. In India, there is a __________ structure of consumer cooperation societies.
a) Two-tier b)
Three-tier
c) Four-tier d)
Single
Ans: b) three-tier
8. __________ affects purchasing power especially in rural population.
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a) Illiteracy b)
Over population
c) Employment d)
Ignorance Ans: b) Over population
9. Bihar with more than half its population in poverty was the __________ state in
2015-16.
a) Richest b)
Poorest
c) Literate d)
Developed Ans: b) Poorest
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10. The concept of food security has continuously evolved over the last __________
decades or so.
a) five b) two c) six d) one Ans: a) five
11. __________ is physical availability of food stocks in desired quantities, which is a
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function of domestic production, changes in stocks and imports


a) Access to food b)
Demand for goods
c) Availability of food d)
Absorption Ans: c) Availability of food
12. __________ is primarily a matter of purchasing power and is therefore closely
linked with the capabilities and employment opportunities to earn.
a) Access to food b)
Demand for goods
c) Availability of food d)
Absorption Ans: a) Access to food
13. __________ of food is the ability to biologically utilise the food consumed.
a) Access to food b)
Demand for goods
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c) Availability of food d)
Absorption Ans: d) Absorption
14. The nature, scope and functioning of PDS varies from __________.
a) town to town b) country to country
c) state to state d)
all the above Ans: c) state to state
15. The increase in food grain production need not result in __________ in access to
food for all.
a) increase b)
Slightly increase
c) decrease d)
Slightly decrease Ans: a) increase
16. 
When demand for goods increases, the price of goods __________ then the
purchasing power is affected.
a) Slightly increase b)
increase

c) decrease d)
Slightly decrease Ans: b) increase
17. The basic philosophy and significance of MPI is that poverty is not __________ ,
and that it is rather multi-dimensional.
a) one-dimensional b)
Two-dimensional
c) multi-dimensional d)
none of these Ans: a) one-dimensional
Xth Std

18. __________ is now considered to be one of the world’s largest programmes of its
kind and a model for the holistic development of the child.
a) PTMGRNMP b)
ICDS
c) RCH d)
NRHM Ans: b) ICDS
19. ___________ in TamilNadu are considered one of the best in the country.
a) PTMGRNMP b) ICDS c) RCH d) NRHM Ans: a) PTMGRNMP
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II Fill in the Blanks

1. The PTMGRNMP (Puratchi Thalaivar MGR Nutritious Meal Programme) is considered to be

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the __________ programme in the country. Ans: a) Largest Noon Meal
2. Our country has reached self sufficiency in __________ Yet, we are to attain food security
for all. Ans: Food production.
3. __________ is one of the least poor regions in 2006. Ans: Kerala
4. India has reduced its __________ drastically from 55% to 28% in 10 years.
Ans: Poverty rate
5. The three dimensions of poverty are health, education and __________
Ans: Living Standard
6. __________is defined as any substance that people eat and drink to maintain life and

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growth. Ans: Food
7. When the price increases the __________ decreases and finally the value of currency
decreases and vice versa. Ans: purchasing power

8. The production and supply of goods decline, the price of goods __________ , then the
purchasing power is affected. Ans: increases

9. __________ can be used to compare countries income levels and other relevant economic
data concerning the cost of living, or possible rates of inflation and deflation.
Ans: PPP

10. ______ with more than half its population in poverty was the poorest state in 2015-16.
Ans: Bihar

11. Nutrition plays a crucial role in __________ and well-being. Ans: human health

12. __________ for empowering girls and making them persuasive catalysts of change.
Ans: ‘Padhumaiyar Kuzhu’

13. __________ of a country is mostly designed by the Government for raising agricultural
production and productivity. Ans: Agricultural policy

14. __________ is a price fixed by an expert group for a particular crop by considering
Xth Std

various costs involved in the cultivation of that crop.


Ans: Minimum Support Price

15. Large population leads to __________ demand, but supply was not equal to the demand.
So, the normal price level will be going an higher. Ans: increasing

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III Match the Following

1. Integrated Child Development Services - a) TNHSP


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2. Reproductive and Child Health Programmes - b) ICDS


3. National Rural Health Mission - c) RCH
4. Tamil Nadu Health Systems Projects - d) UNDP
5. United Nations Development Programme - e) NRHM
Ans: 1-b; 2-c; 3-e; 4-a; 5-d

IV ASSERTION AND REASON

1. Assertion (A) : Health plays a crucial role in human health and well-being.
Reason (R) : Indicator of nutrition deficiency among children is ‘Overweight’
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which is weight in relation to age.


a) A is correct, R is false
b) Both A and R are false statements
c) A is correct but R is not a correct explanation
d) A is correct, R is the correct explanation of A
Ans: b) Both A and R are false statements
2. Assertion (A) : Tamil Nadu has made a significant progress in poverty reduction.
Reason (R) : Population has declined steadily in both rural and urban areas
of Tamil Nadu.
a) A is correct, R is false
b) Both A and R are false statements
c) A is correct but R is not a correct explanation
d) A is correct, R is the correct explanation of A Ans: a) A is correct, R is false.

V Answer in short

1. Define Priority households.


Xth Std

¾¾ The NFSA covers 50% of urban households and 75% of the rural households.
¾¾ These households are known as priority households identified based on a set of
criteria.
¾¾ Priority households of this country now have the right to food supplied through PDS.

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2. Write short notes about the three- tier structure.
¾¾ There is a three-tier structure of consumer cooperative societies in India.
¾¾ They are primary consumer cooperative societies.
¾¾ Central consumer cooperative stores and state level consumer federations.

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¾¾ More than 50,000 village level societies are engaged in the distribution of consumer
goods in rural areas.
¾¾ There are many benefits to consumer cooperatives such as health care, insurance,
housing etc..
¾¾ This scheme is playing an important role in food security in India.
3. What is Buffer stock.
¾¾ Buffer stock is the stock of food grains, namely wheat and rice, procured by the
government through the Food Corporation of India (FCI).
¾¾ Buffer stock is done to distribute foodgrains in the deficit areas and among the Poor

Social Science
strata of the society at a price lower than the market price also known as the Issue
Price
4. What is Purchasing Power.
¾¾ Purchasing power is the value of a currency expressed in terms of the amount of
goods or services that one unit of money can buy.
¾¾ Price increases purchasing power declines and vice versa.
5. What are the objectives of India’s agriculture policy.
1. Raising the productivity of inputs
2. Raising value-added per hectare
3. Protecting the interests of poor farmers
4. Modernising agricultural sector
5. Environmental degradation
6. Removing bureaucratic obstacles

VI Answer in detail
Xth Std

1. Explain about the important outgoing schemes in Tamilnadu.


Important ongoing Schemes in Tamil Nadu
¾¾ Under Dr. Muthulakshmi Reddy Maternity Benefit Scheme, financial assistance to the
tune of ` 12,000 is being disbursed to poor pregnant women with the aim of meeting
expenses on nutritious diet, to compensate for loss of income during the delivery
period and to avoid low birth weight of new born babies in three installments to those

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availing antenatal care, delivering and immunising the babies born in government
institutions.
¾¾ The Chief Minister’s Comprehensive Health Insurance Scheme was launched in the
state in 2011-12 with the aim to provide Universal Healthcare to All by providing free
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medical and surgical treatment in Government and private hospitals to any family
whose annual income is less than ` 72,000 by meeting all expenses relating to the
hospitalisation of the beneficiary.
¾¾ Tamil Nadu Health Systems Projects (TNHSP) has launched ambulance services free
of cost (The 108 Emergency Ambulance Service).
¾¾ The School Health Programme mainly emphasises on providing comprehensive
healthcare services to all students studying in Government and Government-aided
schools.
¾¾ The National Leprosy Eradication programme is being implemented in the state with the
aim to detect and to provide sustained regular treatment to all leprosy patients.
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Xth Std

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UNIT - 4 ECONOMICS Ganga

UNIT
GOVERNMENT AND TAXES
4

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BOOK EXERCISE

I Choose the Correct Answer

1. The three levels of governments in India are __________


a) Union, state and local b) Central, state and village
c) Union, municipality and panchayat d) None of the above
Ans: a) Union, State and Local

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2. In India, taxes are including __________
a) Direct taxes b)
Indirect taxes.
c) Both (a) and (b) d) None of these Ans: c) Both (a) and (b)
3. Which is the role of government and development policies?.
a) Defence b)
Foreign policy
c) Regulate the economy d) all of above Ans: d) All of above
4. The most common and important tax levied on an individual in India is __________
a) Service tax b) Excise duty.
c) Income tax d)
Central sales tax Ans: c) Income tax
5. Under which tax one nation, one uniform tax is ensured __________
a) Value added tax (VAT) b) Income tax
c) Goods and service tax d) Sales tax
Ans: c) Goods and Service Tax (GST)
6. Income tax was introduced in India for the first time in the year __________ .
a) 1860 b) 1870 c) 1880 d) 1850 Ans: a) 1860
7. __________ tax is charged on the benefits derived from property ownership.
Xth Std

a) Income tax b)
Wealth tax
c) Corporate tax d)
Excise duty Ans: b) Wealth Tax
8. What are identified as causes of black money?
a) Shortage of goods b) High tax rate
c) Smuggling d)
All of above Ans: d) All of above

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9. Tax evasion is the illegal evasion of taxes by __________


a) Individuals b)
Corporations
c) Trusts d)
All of the above Ans: d) All of above
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10. Payments are __________


a) Fees and fines b) Penalties and forfeitures
c) None of the above d) a and b Ans: d) a and b

II Fill in the Blanks

1. __________ is levied by government for the development of the state’s economy.


Ans: Tax
2. The origin of the word ‘tax’ is from the word __________ Ans: Taxation
3. The burden of the __________ tax cannot be shifted to others. Ans: Direct
Social Science

4. __________ tax is levied on companies that exist as separate entities from their
shareholders. Ans: Corporate
5. The Goods and Service Tax act came into effect on __________ Ans: 1 July 2017
6. The unaccounted money that is concealed from the tax administrator is called __________
Ans: Black money

III Choose the correct statement

1. Which of the following statement is correct about GST?


(i) GST is the ‘one point tax’.
(ii) This aims to replace all direct taxes levied on goods and services by the Central and
State governments.
(iii) It will be implemented from 1 July 2017 throughout the country.
(iv) It will unified the tax structure in India.
a) (i) and (ii) are correct b) (ii), (iii) and (iv) are correct
c) (i), (iii) and (iv) are correct d) All are correct Ans: c) i, iii and iv are correct
2. Choose the incorrect statements.
Xth Std

(i) Shortage of goods, whether natural or artificial, is the root cause of black money.
(ii) Industrial sector has been the major contributor to black money.
(iii) Smuggling is one of the major sources of black money.
(iv) When the tax rate is low, more black money is generated.
a) (i) and (ii) b)
(iv)
c) (i) d)
(ii) and (iii)
Ans: b) iv
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IV Match the Following

1. Income Tax - a) Value added tax

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2. Excise duty - b) 1 July 2017
3. VAT - c) Smuggling
4. GST - d) Direct tax
5. Black money - e) Indirect tax
(Ans: 1 – d, 2 – e, 3 – a, 4 – b, 5 – c)

V Give short answers

1. Define tax.
¾¾ Prof. Seligman also defined a tax as “a compulsory contribution from a person to the
government to defray the expenses incurred in the common interest of all, without

Social Science
reference to special benefits conferred.”

2. Why we pay tax to the government?


¾¾ The levying of taxes aims to raise revenue to fund governance or to alter prices in
order to affect demand. States throughout history have used money provided by
taxation to carry out many functions.
¾¾ Some of these include transportation, sanitation, public safety, education, healthcare
systems, military and scientific research, etc,.
3. Write the canons of tax system?
¾¾ There are some characteristics of tax system that economists think should be followed
while designing a tax system. These characteristics are called as canons of taxation.
¾¾ The list of canons of taxation are-
i) Canon of equality
ii) Canon of certainty
iii) Canons of economy and convenience and
iv) Canons of productivity and elasticity.
4. What are the types of tax? Give examples.
Taxes are levied by government for the development of the state’s economy. The revenue
Xth Std

of the government depends upon direct and indirect taxes. The types of taxes are –
S.No Types of taxes Examples
1. Direct taxes Income tax, Corporate tax, Wealth tax, etc.
2. Indirect taxes Stamp duty, Entertainment tax, Excise duty,
Goods and Services tax, etc.

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5. Write short note on Goods and Service Tax.


¾¾ The Goods and Service Tax (GST) is one of the indirect taxes.
¾¾ The GST was passed in Parliament on 29 March 2017.
¾¾ The act came into effect on 1 July 2017. The motto is one nation, one market, one tax.
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¾¾ Goods and service tax is defined as the tax levied when a consumer buys a good or
service.
¾¾ The tax aims to replace all indirect taxes levied on goods and services by the Central
and state governments.
6. What is progressive tax?
¾¾ Progressive tax rate is one in which the rate of taxation increases (multiplier) as the
tax base increases (multiplicand).
¾¾ The amount of tax payable is calculated by multiplying the tax base with the tax rate.
In the case of a progressive tax, the multiplicand (income) increases.
¾¾ When income increases, the tax rate also increases. This is known as a progressive
Social Science

tax.
7. What is meant by black money?
¾¾ Black money is funds earned on the black market on which income and other taxes
have not been paid.
¾¾ The unaccounted money that is concealed from the tax administrator is called black
money.
8. What is tax evasion?
¾¾ Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts.
¾¾ Tax evasion often entails tax payers deliberately misrepresenting the true state of
their affairs to the tax authorities to reduce their tax liability.
¾¾ They includes dishonest tax reporting such as declaring less income, profits or gains
than the amounts actually earned or overstating deductions.
9. Write some causes of tax evasion.
¾¾ Tax evasion resulting in black money prevents the resource mobilisation efforts of the
Union government.
¾¾ Shortage of funds affects implementation of developmental plans and forces the
government to resort to deficit financing in public expenditure.
Xth Std

¾¾ Tax evasion interferes with the declared economic policies of the government by
distorting saving and investment patterns and availability of resources for various
sectors of the economy.
¾¾ Honest taxpayers willingly bear disproportionate tax burden, feel demoralised and
lured to join the tax evaders’ camp.
¾¾ Tax evasion and black money encourage the concentration of economic power in the
hands of undeserving groups in the country.
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UNIT - 4 ECONOMICS Ganga


10. What is the difference between tax and payments?
S.No Tax Payments
Tax is compulsory to the Fee is payment for getting any service.
1. government without getting any

Volume - II
direct benefits.
2. Taxi is a compulsory payment Fee is a voluntary payment
Example: Income tax, Wealth Fee payers can get direct benefit for
3. tax, VAT etc., paying fee. Example: Stamp fee, Driving
license fee, Government registration fee.

VI Brief Answer

1. Briefly explain the role of government in development policies.

Social Science
Defence:
¾¾ Defence is an essential function to protect our nation from our enemies.
¾¾ The Union government is responsible for creating and maintaining defence forces.
Foreign policy:
¾¾ In today’s world, we need to maintain friendly relationships with all the other countries.
¾¾ India is committed to world peace.
¾¾ This service is also provided by the Union government.

Conduct of periodic elections:


¾¾ We elect our representatives to Parliament and state assemblies and local bodies.
¾¾ The Union and state government creates laws and looks after administrative
system.

Law and order:


¾¾ Both the Union and state governments enact numerous laws to protect our rights,
properties and to regulate our economy and society.
¾¾ To settle disputes, we have judicial system consisting of courts at the national, state
and lower levels.

Public administration and provision of public goods:


Xth Std

¾¾ The government generally administers the economy and society through various
departments such as revenue department, schools, hospitals, rural development and
urban development.
¾¾ The local governments provide public goods like local roads, drainage, drinking water
and waste collection and disposal.

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Ganga ECONOMICS UNIT - 4

Redistribution of income and poverty alleviation:


¾¾ The taxes are collected in a way that the high-income people can bring in more tax
revenue to the government than the poor.
¾¾ The governments also spend money to provide basic necessities of life like food,
Volume - II

shelter, clothing education, health care.

Regulate the economy:


¾¾ The Union government controls money supply and controls the interest rate, inflation
and foreign exchange rate.
¾¾ The main objective is to remove too much of fluctuation in these rates. The Union
also controls the economy through various other agencies.
¾¾ All the governments in India run public sector enterprises to provide important goods
and services at affordable rates to the people.
2. Explain some direct and indirect taxes.
Social Science

¾¾ The origin of the word “tax” is from “taxation,” which means an estimate. The main
purpose of taxation is to accumulate funds for the functioning of the government
machinery. Two types of taxes are i) Direct Taxes and ii) Indirect axes.
Direct Taxes
¾¾ A tax imposed on an individual or organisation, which is paid directly, is a direct tax.
Some direct taxes are income tax, wealth tax and corporation tax.
i) Income tax
¾¾ Income tax is the most common and most important tax levied on an individual in India.
¾¾ It is charged directly based on the income of a person.
¾¾ The rate at which it is charged varies, depending on the level of income.
ii) Corporate tax
¾¾ This tax is levied on companies that exist as separate entities from their shareholders.
¾¾ It is charged on royalties, interest gains from sale of capital assets located in India.
iii) Wealth tax
¾¾ Wealth tax is charged on the benefits derived from property ownership.
¾¾ The same property will be taxed every year on its current market value.
¾¾ The tax is levied on the individuals and companies alike.
Xth Std

Indirect Taxes
If the burden of the tax can be shifted to others, it is an indirect tax. Some indirect taxes
are stamp duty, entertainment tax, excise duty and goods and service tax (GST).
i) Stamp duty
¾¾ Stamp duty is a tax that is paid on official documents like marriage registration or
documents related to a property and in some contractual agreements.

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ii) Entertainment tax
¾¾ Entertainment tax is a duty that is charged by the government on any source of
entertainment provided.
¾¾ This tax can be charged on movie tickets, tickets to amusement parks, exhibitions

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and even sports events.
iii) Excise duty
¾¾ An excise tax is any duty on manufactured goods levied at the movement of
manufacture, rather than at sale.
¾¾ Excise is typically imposed in addition to an indirect tax such as a sales
3. Write the structure of GST.
Structure of Goods and Service Tax (GST)
¾¾ State Goods and Service Tax (SGST): Intra state (within the state) VAT/sales tax,
purchase tax, entertainment tax, luxury tax, lottery tax and state surcharge and

Social Science
cesses
¾¾ Central Goods and Service Tax (CGST): Intra state (within the state) Central
Excise Duty , service tax, countervailing duty, additional duty of customs, surcharge,
education and secondary/higher secondary cess
¾¾ Integrated Goods and Service Tax (IGST): Inter state (integrated GST) There are
four major GST rates: 5%, 12%, 18% and 28%. Almost all the necessities of life like
vegetables and food grains are excempted from this tax.
4. What is black money? Write the causes of black money.
Black money is funds earned on the black market on which income and other taxes have
not been paid. The unaccounted money that is concealed from the tax administrator is
called black money.
Causes of Black Money:
i) Shortage of goods
Shortage of goods, whether natural or artificial, is the root cause of black money. Controls
are often introduced to check black money.
ii) Licensing proceeding:
¾¾ It is firmly believed that the system of controls permits, quotes and licences are
associated with mal-distribution of commodities in short supply, which results in the
Xth Std

generation of black money.


iii) Contribution of the industrial sector:
¾¾ Industrial sector has been the major contributor to black money.
¾¾ For example, the Controller of Public Limited Companies tries to buy commodities at
low prices and get them billed at high amounts.

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iv) Smuggling:
¾¾ Smuggling is one of the major sources of black money.
¾¾ When India had rigid system of exchange controls, precious metals like gold and
silver, textiles and electronics goods were levied a heavy excise duty.
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Bringing these goods by evading the authorities is smuggling.


v) Tax structure:
When the tax rate is high, more black money is generated.
5. Explain the role of taxation in economic development.
The role of taxation in developing economics is as follows.
i) Resource mobilisation:
¾¾ Taxation enables the government to mobilise a substantial amount of revenue.
¾¾ The tax revenue is generated by imposing direct taxes and indirect taxes.
Social Science

ii) Reduction in equalities of income:


¾¾ Taxation follows the principle of equity.
¾¾ The direct taxes and certain indirect taxes are also progressive in nature.
iii) Social welfare:
¾¾ Taxation generates social welfare.
¾¾ Social welfare is generated due to higher taxes on certain undesirable products like
alcoholic products.
iv) Foreign exchange:
¾¾ Taxation encourages exports and restricts imports,
¾¾ Generally developing countries and even the developed countries do not impose
taxes on export items.
v) Regional development:
¾¾ Taxation plays an important role in regional development.
¾¾ The Tax induces business firms to set up industries in such regions.
vi) Control of inflation:
¾¾ Taxation can be used as an instrument for controlling inflation.
Xth Std

¾¾ Through taxation the government can control inflation by reducing the tax on the
commodities.

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UNIT - 4 ECONOMICS Ganga


VII Project and activity

1. Collect information about the local taxes (water, electricity and house tax etc).
(Self Activity)

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2. Students purchase some goods on the shop. The teacher and students discuss
those goods, maximum retail price, purchasing price or GST.
(Self Activity)

ADDITIONAL QUESTIONS

I Choose the Correct Answer

1. __________ levied on income of the persons.


a) Indirect taxes b)
Direct taxes

Social Science
c) Multiple taxes d) Regular taxes Ans: b) Direct taxes
2. The word ‘tax’ originated from the word – taxation which means an __________
a) Estimate b)
Account
c) Employ d)
Income Ans: a) Estimate
3. Taxation in India has its roots from the period of Manu Smriti and __________
a) Indica b)
Arthasastra
c) Babur Nama d)
Tholkappiam Ans: b) Arthasastra
4. A government accumulates debt when expenditures exceeds __________
a) Tax revenue b)
Agriculture
c) Foreign relation d)
Per-capita income Ans: a) Tax revenue
5. Income tax is charged directly based on the __________ of a person.
a) Property b)
Bank balance
c) Income d)
Expenditure Ans: c) Income
6. __________ is levied on the individuals and companies alike.
a) Income tax b)
Property tax
c) Wealth tax d)
Corporate tax Ans: c) Wealth tax
Xth Std

7. The GST was passed in the Parliament on 29 March __________


a) 2015 b) 2016 c) 2017 d) 2018 Ans: c) 2017
8. __________ was the first country to implement GST.
a) India b)
France
c) England d)
America Ans: b) France

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Ganga ECONOMICS UNIT - 4

9. Black money is generated when the __________ is high.


a) Foreign money b)
Income
c) Tax rate d)
Surplus money Ans: c) Tax rate
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10. Brining costly goods by evading the authorities is __________


a) Prohibition b)
Smuggling
c) Exemption d)
Pouching Ans: b) Smuggling
11. Defence is an essential security function to protect our nation from our enemies.
a) Foreign policy b)
Defence
c) Periodic election d)
Law and Order Ans: b) Defence
12. Wealth tax is charged on the benefits derived from property ownership.
a) Income tax b)
Corporate tax
c) Wealth tax d)
none of these Ans: c) Wealth tax
Social Science

13. Foreign policy is used to maintain friendly relationships with all the other countries
in the world.
a) Foreign policy b)
Defence
c) Periodic election d)
Law and Order Ans: a) Foreign policy
14. Income tax is the most common and most important tax levied on an individual in
India.
a) Income tax b)
Corporate tax
c) Wealth tax d)
none of these Ans: a) Income tax
15. Entertainment tax is a duty that is charged by the government on any source of
entertainment provided.
a) Income tax b)
Corporate tax
c) Entertainment tax d)
Wealth tax Ans: c) Entertainment tax
16. Income Tax was introduced for the first time in 1860
a) 1866 b) 1960 c) 1966 d) 1860 Ans: d) 1860
17. Stamp duty is a tax that is paid on official documents like marriage registration or
documents related to a property and in some contractual agreements.
a) Stamp duty b)
Corporate tax
Xth Std

c) Entertainment tax d)
Wealth tax Ans: a) Stamp duty
18. This tax is levied on companies that exist as separate entities from their shareholders.
a) Income tax b)
Corporate tax
c) Wealth tax d)
none of these Ans: b) Corporate tax

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19. The GST was passed in Parliament on __________.
a) 29 March 2017 b)
28 March 2016
c) 29 April 2017 d)
29 March 2018 Ans: c) 29 April 2017

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20. An __________ is any duty on manufactured goods levied at the movement of
manufacture, rather than at sale.
a) Stamp duty b)
Corporate tax
c) Entertainment tax d)
excise tax Ans: d) excise tax

II Fill in the Blanks

1. The government mobilises its __________ by Direct taxes and Indirect taxes.
Ans: Financial resources
2. The __________ is responsible for creating and maintaining defence forces.

Social Science
Ans: Union government
3. A government’s ability to raise taxes is called its __________
Ans: Fiscal capacity
4. In India, Income Tax was introduced by __________ in 1860.
Ans: Sir James Wilson.
5. In 1860, Income Tax was introduced in India to meet the losses sustained by the
Government on account of the __________ Ans: Mutiny of 1857
6. The major indirect taxes in India are __________ Ans: Customs duty and GST
7. Goods and Service Tax )GST) is also known as a __________ Ans: One point tax
8. Tax levied on goods and service in a fixed portion is known as __________
Ans: Proportionate tax
9. Taxation can be used as an instrument for controlling __________ Ans: Inflation

10. __________ are levied on income of the persons and the __________are levied on
goods and services by which the government mobilizes its “financial resources”.
Ans: Direct taxes indirect taxes
Xth Std

11. If the burden of the tax can be shifted to others, it is an __________


Ans: indirect tax
12. __________ defines a direct tax as “one which is demanded from the very persons who
it is intended or desired should pay it.” Ans: J.S. Mill

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Ganga ECONOMICS UNIT - 4

13. __________ is a means by which governments finance their expenditure by imposing


charges on citizens and corporate entities. Ans: Taxation

14. Taxation in India has its roots from the period of __________ and __________
Volume - II

Ans: Manu Smriti Arthasastra

15. A government’s ability to raise taxes is called its __________ .


Ans: fiscal capacity

16. __________ rate is one in which the rate of taxation increases as the tax base increases.
Ans: Progressive tax

17. It implies that higher the rate of tax __________ the income groups than in the case of
__________ income groups. Ans: lower higher

18. Tax levied on goods and service in a fixed portion is known as __________
Ans: proportionate taxes
Social Science

19. Shortage of goods is the root cause of __________ . Ans: black money

20. __________ is one of the major sources of black money. Ans: Smuggling

21. When the __________ is high, more black money is generated. Ans: tax rate

III Choose the correct statement

1. Choose the correct statements.


a) In Progressive tax system, income increases, the tax rate also increases.
b) In the Proportionate tax system, the rate taxation is the same regardless of the size
of income.
c) shortage of goods is the root cause of black money.
d) When the tax rate is low, more black money is generated.
a) a and b b)
d
c) a d)
a, b and c Ans: d) a, b and c
2. Choose the correct statements.
a) Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts.
Xth Std

b) T
 he Union government through Indian Bank controls money supply, rate of interest,
inflation and foreign exchange rate.
c) India is committed to world peace.
d) Some indirect taxes are income tax, wealth tax and corporate taxes.
a) a and b b) a and d
c) a and c d)
a, b and c Ans: c) a and c

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UNIT - 4 ECONOMICS Ganga
IV Match the Following

1. Share holders - a) 2016


2. Regressive taxes - b) Corporate tax

Volume - II
3. Unaccounted money - c) ED
4. Enforcement Directorate - d) Black money
5. The real Estate - e) opposite of progressive tax
Ans: 1-b; 2-e; 3-d; 4-c; 5-a

V Give short answers

1. Write a note on Proportionate taxes.


¾¾ Tax levied on goods and service in a fixed portion is known as proportionate taxes.
¾¾ All tax payers contribute the same proportion of their incomes.

Social Science
¾¾ In this method, the rate of taxation is the same regardless of the size of income.
¾¾ The tax amount realised varies in the same proportions that of income.
2. What are the tax evasion penalties?
¾¾ Tax evasion penalties include imprisonment of up to five years and high amount as fines.
¾¾ The defendant may also be ordered to pay for the costs of prosecution.
¾¾ Other tax evasion penalties include community service, probation and restitution
depending on the circumstances of the case.
¾¾ Tax evasion penalties can be harsh depending on the severity of the crime
3. What are the causes of Black Money.
¾¾ Shortage of goods  Licensing Proceeding
¾¾ Contribution of the industrial sector  Smuggling  Tax structure
4. Define the activities of Tax evasion.
Tax evasion activities included
¾¾ Underreporting income  Inflating deductions or expenses
¾¾ Hiding money  Hiding interest in offshore accounts
5. Write the few role of Taxation.
Xth Std

¾¾ Resource mobilization  Social welfare


¾¾ Foreign exchange Control of inflation

6. Write about the penalties of Tax evasion.
¾¾ If a person wilfully commits the act of tax evasion, he may face felony charges.
¾¾ Tax evasion penalties include imprisonment of up to five years and high amount as
fines.

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Ganga ECONOMICS UNIT - 4

¾¾ The defendant may also be ordered to pay for the costs of prosecution.
¾¾ Other tax evasion penalties include community service, probation and restitution
depending on the circumstances of the case.
¾¾ Tax evasion penalties can be harsh, depending on the severity of the crime.
Volume - II

7. Define Stamp duty and Entertainment tax.


Stamp duty
¾¾ Stamp duty is a tax that is paid on official documents like marriage registration or
documents related to a property and in some contractual agreements.
Entertainment tax
¾¾ Entertainment tax is a duty that is charged by the government on any source of
entertainment provided.
¾¾ This tax can be charged on movie tickets, tickets to amusement parks, exhibitions
and even sports events.
Social Science

VI Brief Answer

1. Explain about the canons of taxation.


There are some characteristics of tax system that economists think should be followed
while designing a tax system. These characteristics are called as canons of taxation.
Canon of equity – Since tax is a compulsory payment, all economists agree that equity
is the cardinal principle in designing the tax system. The equity principal says that the
rich should pay more tax revenue to government than the poor, because rich has more
ability than the poor to pay the tax.
Canon of Certainty – Government should announce in advance the tax system so that
every tax payer will be able to calculate how much tax amount one may have to pay
during a year to the government.
Canons of Economy and Convenience – These two canons are related. As tax payers
we incur a cost to process our accounts and pay the tax, for example, salary paid to
accountants and auditors. Similarly government also pays salary to its taxmen and run
huge institutions. If the tax is simple, then the cost of collecting taxes (tax payer cost +
tax collector cost) will be very low. Further, tax should be collected from a person at the
time he gets enough money to pay the tax. This is called canon of convenience.
Xth Std

Canons of Productivity and Elasticity – Government should choose the taxes that
can get enough tax revenue to it. In other words, it should choose a few taxes that can
fetch more tax revenue, instead of lots of taxes and each one of them getting a little
tax revenue. This is canon of productivity. Tax is paid by the people out their incomes.
Therefore the tax system should be designed in such a way that the people automatically
pay more tax revenue if their incomes grow. This is called canon of elasticity.

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UNIT - 5 ECONOMICS Ganga

UNIT
5 INDUSTRIAL CLUSTER IN TAMILNADU

Volume - II
BOOK EXERCISE

I Choose the Correct Answer

1. ‘The Detroit of Asia’ is __________


a) Tuticorin b)
Coimbatore
c) Chennai d)
Madurai Ans: c) Chennai
2. Pump sets and motors are produced mostly in __________
a) Salem b)
Coimbatore

Social Science
c) Chennai d)
Dharampuri b) Coimbatore
3. Tuticorin is known as __________
a) Gateway of India b) Gateway of Tamil Nadu
c) Pump city d)
None of these Ans: b) Gateway of Tamil Nadu.
4. __________ are an essential aspect of a nation’s development.
a) Agriculture b)
Industry
c) Railway d)
None of these Ans: b) Industry
5. Tiruppur is known for __________
a) Leather tanning b)
Lock making
c) Knitwear d)
Agro-processing Ans: c) Knitwear
6. Along with Ambur and Vaniyambadi __________ is also a centre for leather goods
exports.
a) Chennai b)
Sivakasi
c) Coimbatore d)
Madurai Ans: a) Chennai
7. IT means __________
a) Indian Technology b)
Information Technology
Xth Std

c) Institute of Technology d) Initiative Technology


Ans: b) Information Technology
8. A successful industrial cluster entirely created by the Tamil Nadu is __________
a) Hosur b)
Dindigul
c) Kovilpatti d)
Tirunelveli Ans: a) Hosur

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Ganga ECONOMICS UNIT - 5

9. SIPCOT was formed in the year __________


a) 1972 b) 1976 c) 1971 d) 1978 Ans: c) 1971
10. Which is the Tamil Nadu Industrial Development Agency?
Volume - II

a) SIPCOT b)
TANSIDCO
c) TIDCO d)
All of these Ans: d) All of these

II Fill in the Blanks

1. __________ are very important in the modern economic activates of man.


Ans: Industries
2. __________ are groups of firms in a defined geographic area that share common market
and technologies. Ans: Industrial clusters
3. Hundred of leather and tannery facilities are located around __________ District in
Social Science

Tamil Nadu. Ans: Vellore


4. __________ is fondly calls as ‘Little Japan’. Ans: Sivakasi
5. Special Economic Zones policy was introduced on in__________ Ans: Apr. 2000
6. __________is an innovator of new ideas and business processes. Ans: Entrepreneur

III Choose the correct statement

1. i) Entrepreneurship promotes capital formation by mobilising the idle saving of the


public.
ii) They are not provide large scale employment to artisan, technically qualified
persons and professionals.
iii) Entrepreneurs help the country to increase the GDP and per capitals income
iv) Entrepreneurs not promote country’s export trade.
a) i) and iv) is correct b) i) only correct
c) iii) and iv) is correct d) i) and iii) is correct
Ans: d) i) and iii) is correct
Xth Std

IV Pick out odd one

1. Which one of the following is not having leather factories?


a) Ranipet b)
Dharmapuri
c) Ambur d)
Vaniyambadi Ans: b) Dharmapuri

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UNIT - 5 ECONOMICS Ganga
2. Which one of the following is not a industrial developing agency?
a) TIDCO b)
SIDCO
c) MEPG d)
SIPCOT Ans: c) MEPG

Volume - II
V Match the Following

1. Entrepreneur - a) Export Processing Zone


2. MEPZ - b) Coimbatore
3. Indian Ordnance Factory - c) Organizer
4. TNPL - d) Aravankadu
5. Machester of south India - e) Karur
(Ans: 1 – c, 2 – a, 3 – d, 4 – e, 5–b)

Social Science
VI Write Short Answer

1. Why should a developing economy diversify out of agriculture?


¾¾ As an economy grows and incomes increase, consumers tend to spend a lesser share
of their income on products from the agricultural sector.
¾¾ Food products are taken over longer distances, processed and branded. As a result,
the prices that farmers get tend to be much less compared to the prices at which
consumers buy.
¾¾ Wages too cannot therefore increase and as a result poverty levels may remain high.
¾¾ Due to all these factors, there is a need for an economy’s production and employment
base to diversify away from agriculture.
2. Why are wages low in the agricultural sector?
¾¾ There are limits to the ability of agriculture to absorb labour due to the declining
marginal productivity of land.
¾¾ As a result, labour productivity in the agricultural sector cannot increase much.
¾¾ Wages too cannot therefore increase and as a result poverty levels may remain
high, especially when more and more people continue to rely on agriculture for their
Xth Std

livelihood.
3. What is meant by an industrial cluster?
¾¾ Industrial clusters are groups of firms in a defined geographic area that share common
markets, technologies and skill requirements.
¾¾ An important aspect of clusters is the nature of inter-firm networks and
interactions.

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4. What are the routes for cluster formation?


Clusters may arise due to many factors. For example-
¾¾ Industrial clusters are groups of firms in a defined geographic area that share common
markets, technologies and skill requirements.
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¾¾ An important aspect of clusters is the nature of inter-firm networks and interactions.


¾¾ Clusters where firms specialise in one stage of the production process and supply
inputs or absorb the output of another firm in the cluster is critical to the efficiency
and competitiveness of the cluster.
5. Mention the 3 areas of policy making that helped Tamil Nadu become one of the
most industrialised states in the country.
The areas of policy making that helped Tamil Nadu as one of the most industrialised
states in India are –
i) Education
Social Science

ii) Infrastructure
iii) Industrial promotion
6. Mention any three industrial development agencies in Tamil Nadu and their role.
¾¾ SIPCOT (State Industries Promotion Corporation of Tamil Nadu) was formed in
1971. It was formed to promote industrial growth in the state by setting up industrial
estates.
¾¾ TANSIDCO (Tamil Nadu Small Industries Development Corporation) was formed in
1970. It was formed to promote small-scale industries in the state. It gives subsidies
and provides technical assistance for new firms in the small scale sector.
¾¾ TIDCO (Tamil Nadu Industrial Development Corporation) was formed 1965. Its aim
is to promote industries in the state and to establish industrial estates.
7. What are the problems of industrialization currently in Tamil Nadu?
The major problems are-
¾¾ To begin with, some clusters, especially chemicals, textiles and leather clusters, tend
to generate a lot of polluting effluents that affect health. The effluents also pollute
water bodies into which effluents are let into and also adjoining agricultural lands.
¾¾ Second, employment generation potential has declined because of use of frontier
technologies because of the need to compete globally.
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¾¾ Quality of employment also has suffered in recent years as most workers are employed
only temporarily.
8. What is Meant by Entrepreneur?
¾¾ Entrepreneur is an innovator of new ideas and business processes.
¾¾ He possesses management skills, strong team building abilities and essential
leadership qualities to manage a business.
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9. What is Enterpreneurship?
¾¾ Entrepreneurship is a process of a action of an entrepreneur who undertakes to
establish his enterprise.
¾¾ It is the ability to create and build something.

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VII Write Brief Answer

1. What are the contributions of industrialization to development?


Industrialisation refers to the process of using modern techniques of production to
produce goods that are required by both consumers and other producers on a large scale.
Contributions of Industrialisation:
¾¾ It is essential to produce inputs to other producers in an economy. Even agriculture
requires inputs from industry such as fertilisers and tractors to increase productivity.

Social Science
¾¾ Second, a market exists for both producers and consumer goods. Even services like
banking, transport and trade are dependent on production of industrial goods.
¾¾ Third, by using modern methods of production, goods are produced at lower rates.
It therefore helps people to buy goods at a cheaper rate and help create demand for
more products.
¾¾ Fourth, industrialisation helps to absorb the labour force coming out of agriculture.
Employment generation is therefore an important objective of industrialisation.
¾¾ Fifth, through the use of modern techniques, industrialisation helps to learn new
methods and their improvement. As a result labour productivity, ie, output per unit of
labour input increases, which can help workers earn higher wages.
¾¾ Sixth, expanding incomes lead to more demand for goods and services. If the
production is less, the country has to spend a lot of foreign exchange. Industrialisation
therefore helps an economy to save and also generate foreign exchange through
exports.
2. Write a note on history of industrialisaton in Tamil Nadu.
¾¾ In the ancient and medieval period, the traders of Tamil Nadu had a contact with both
South-East and West Asia. There is lot of evidence for presence of industrial activities
such as textiles, ship-building, iron and steel making and pottery in precolonial Tamil
Nadu. some industries developed during the colonial period and provided the basis
Xth Std

for subsequent industrialisation in the state.


Colonial period:
¾¾ There are two sets of factors that have contributed to the process. The introduction
of cotton cultivation in western and southern Tamil Nadu by the colonial government
led to the emergence of a large-scale textile sector in these parts. The introduction of
railways also expanded the market for cotton yarn and helped to develop the sector.
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¾¾ Second, increase in trade during this period led to industrial development around two
of the most active ports in the region - Chennai and Tuticorin. The Chennai region
also saw the beginning of the automobile sector.
¾¾ Match factories too emerged during the colonial period in the Sivakasi region, which
Volume - II

later on became a major centre for fireworks production and printing.


¾¾ The growth of jiggery industry in South Tamil Nadu is another example of this.
Leather production was also taking place in Dindigul, Vellore and Ambur areas.
¾¾ In Western Tamil Nadu, the emergence of textiles industries also led to demand and
starting of textile machinery industry in the region. In this region, electricity from
hydro-electric power was introduced in the 1930s.
¾¾ In Western Tamil Nadu, availability of electricity allowed for use of oil engines for
drawing ground water. This led to expansion of agriculture and demand for oil
engines. In turn, it led to emergence of workshops for servicing engines.
Post-Independence period:
Social Science

¾¾ Soon after independence, several large enterprises were set up by both the central
and state governments in different segments such as the Integral Coach Factory
(ICF) in Chennai and the Bharat Heavy Electricals Limited (BHEL) in Tiruchirapalli.
¾¾ BHEL in turn led to the emergence of an industrial cluster of several small firms
catering to its input requirements.
¾¾ Heavy Vehicles Factory was set up to manufacture tanks in Avadi on the outskirts of
Chennai. Standard Motors and Ashok Motors (later Ashok Leyland) located in Chennai
together helped form an automobile cluster in the Chennai region.
¾¾ The Avadi industrial estate was established in the 1950s to support the small and
medium companies supplying to the large firms in the region.
¾¾ More hydro-electric power projects in the state were also initiated to increase the
spread of electrification. The government played a major role in all these processes.
¾¾ The Salem Steel Plant was set up in 1973 to produce stainless steel.
¾¾ The Coimbatore region also witnessed diversification from textiles to textile machinery
as well as agricultural machinery like electric motors and pump sets for drawing
ground water.
¾¾ The 1970s and 1980s saw the setting up of emergence of power loom weaving
clusters in the Coimbatore region as well as expansion of cotton knitwear cluster in
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Tiruppur.
3. What are the important characteristics of successful industrial clusters?
The following are the chief characteristics of a successful cluster.
¾¾ geographical proximity of small and medium enterprises (SMEs)
¾¾ sectoral specialisation
¾¾ close inter-form collaboration
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¾¾ inter-form competition based on innovation
¾¾ a socio-cultural identity, which facilitates trust
¾¾ multi-skilled workforce
¾¾ active self-help organisations, and

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¾¾ supportive regional and municipal governments.
4. Write about the Textile industry cluster in Tamil Nadu?.
¾¾ Tamil Nadu is home to the largest textiles sector in the country.
¾¾ Because of the development of cotton textile industry since the colonial period,
Coimbatore often referred as the “Manchester of South India”.
¾¾ At present, most of the spinning mills have moved to the smaller towns and villages
at a radius over 100 to 150 km around the Coimbatore city.
¾¾ Tamil Nadu is the biggest producer of cotton yarn in the country.
¾¾ Palladam and Somanur, small towns near Coimbatore and the villagesnear these

Social Science
towns, are home to a dynamic powerloom weaving cluster as well.
¾¾ Powerloom is however more widespread with Erode and Salem regiontoo having a
large number of power loom units.
¾¾ Tiruppur is famous for clustering of a large number of forms producingcotton knitwear.
¾¾ It accounts for nearly 80% of the country’s cotton knitwear exports and generates
employment in the range of over three lakh people since the late 1980s.
¾¾ It is also a major producer for the domestic market.
¾¾ Because of its success in the global market, it is seen as one of the most dynamicclusters
in the Global South.
¾¾ While initially most forms were run by local entrepreneurs, at present, some of the
leading garment exporters in India have set up factories here.
¾¾ Apart from body building, Karur is a major centre of exports of home furnishingslike
table cloth, curtains, bed covers and towels.
¾¾ Bhavani and Kumrapalayam are again major centres of production of carpets, both
for the domestic and the global markets.
¾¾ Apart from such modern clusters, there are also traditional artisanal clusters such as
Madurai and Kanchipuram that are famous for silk and cotton handloom sarees.
¾¾ Even these clusters have witnessed a degree of modernisation with use of powerlooms
Xth Std

in several units.
5. Write in detail about the types of policies adopted by the Tamil Nadu government
to industrialise.
Policy factors can be divided into three aspects:
Education
¾¾ Industries require skilled human resources.
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¾¾ Apart from a lot of attention to primary education to promote literacy and basic
arithmetic skills, the state is known for its vast supply of technical human resources.
¾¾ It is home to one of the largest number of engineering colleges, polytechnics and
Industrial Training Centres in the country.
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Infrastructure
¾¾ The widespread diffusion of electrification has contributed to the spread of
industrialization to smaller towns and villages in the state.
¾¾ Along with electrification, Tamil Nadu is known for its excellent transport infrastructure,
especially minor roads that connect rural parts of the state to nearby towns and cities.
¾¾ A combination of public and private transport has also facilitated ruralto urban
connectivity and therefore connect small producers to markets better.
Industrial Promotion.
¾¾ Apart from investments in education and transport and energy infrastructure, active
policy efforts were made to promote specific sectors and also industrialisation in
Social Science

specific regions.
¾¾ Policies to promote specific sectors like automobile, auto components, bio technology
and Information and communication.
¾¾ Technology sectors have been formulated in the post reform period.
¾¾ In addition, the state has put in place several industrial promotion agencies for
both large enterprises and the small and medium segments, as well as to provide
supporting infrastructure.
6. Explain the role of Entreprenuer?
Role of an Entrepreneur
Entrepreneurs play a most important role in the economic growth and development of
acountry’s economy.
¾¾ They promote development of industries and help to remove regional disparities by
industrialising rural and backward areas.
¾¾ They help the country to increase the GDP and Per Capita Income.
¾¾ They contribute towards the development of society by reducing concentration of
income and wealth.
¾¾ They promote capital formation by mobilising the idle savings of the citizens and
Xth Std

country’s export trade.


¾¾ Entrepreneurs provide large-scale employment to artisans, technically qualified
persons and professionals and work in an environment of changing technology and
try to maximise profits by innovations.
¾¾ They enable the people to avail better quality goods at lower prices, which results in
the improvement of their standard of living.

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UNIT - 5 ECONOMICS Ganga
VIII Case Study

1. Choose a cluster in Tamil Nadu based on online research and write a note on it.

Volume - II
(Self Activity)

IX Activity and Project

1. Write a note on cluster or a firm near your school/home based on your observations.
(Self Activity)

X Life Skills

1. Teacher and students discuss about the entrepreneurs and their activities and

Social Science
write an essay in the topic of ‘If you are like a Entrepreneur”.
(Self Activity)

ADDITIONAL QUESTIONS

I Choose the Correct Answer

1. Industries require __________ human resources.


a) Unskilled b)
Bonded labours
c) Slaves d)
Skilled Ans: d) Skilled
2. Countries in the Southern hemisphere are called __________ countries.
a) Asian b)
Global South
c) South Asian d)
Eastern Ans: b) Global South
3. 
Palladam and Somanur, small towns near __________ are home to a dynamic
power loom weaving cluster.
a) Kanchipuram b)
Madurai
c) Coimbatore d)
Chennai Ans: c) Coimbatore
Xth Std

4. Tamil Nadu is home to the largest __________sector in the country.


a) Automobile b) Textile
c) Printing d) Tanning Ans: b) Textile
5. In Tamil Nadu, there are __________ industrial clusters.
a) 25 b) 27 c) 32 d) 34 Ans: b) 27

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Ganga ECONOMICS UNIT - 5

6. 
If the output is consumed by another producer, it is called a capital goods
__________.
a) good sector b)
size
c) Ownership d)
Users Ans: a) good sector
Volume - II

7. Firms may be privately owned, publicly owned (by the government, central or
state), jointly owned by the private and public sector, or cooperatively owned is
called __________
a) good sector b)
size
c) Ownership d)
Users Ans: c) Ownership
8. _____are the firms may be large, small or medium based on their volume of
output, sales or employment or on the basis of the amount of investments made.
a) good sector b)
size
c) Ownership d)
Users Ans: b) size
Social Science

9. 
An important aspect of __________ is the nature of inter-firm networks and
interactions.
a) Cluster b)
size
c) Ownership d)
Users Ans: a) Cluster
10. The advantages of industrial clusters or districts was first observed by the famous
economist in __________ s.
a) 1920 b) 1940 c) 1940 d) 1950 Ans: a) 1920
11. __________ is home to large number of auto assembly and component making
firms.
a) Coimbatore b)
Chennai
c) Namakkal d)
Madurai Ans: b) Chennai
12. __________ region is also developing into an auto component cluster.
a) Coimbatore b)
Chennai
c) Namakkal d)
Madurai Ans: b) Chennai
13. The __________ - Tiruchengode belt in western TamilNadu is known for its truck
body building industry.
Xth Std

a) Coimbatore b)
Chennai
c) Namakkal d)
Madurai Ans: a) Coimbatore
14. __________ is the biggest producer of cotton yarn in the country.
a) Tamilnadu b)
Andra Pradesh
c) Madhya Pradesh d)
Kerala Ans: a) Tamilnadu

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15. __________ is famous for clustering of a large number of firms producing cotton
knitwear.
a) Coimbatore b)
Chennai
c) Tiruppur d)
Madurai Ans: c) Tiruppur

Volume - II
16. __________ is known for its excellent transport infrastructure, especially minor
roads that connect rural parts of the state to nearby towns and cities.
a) Tamilnadu b)
Andra Pradesh
c) Madhya Pradesh d)
Kerala Ans: a) Tamilnadu

II Fill in the Blanks

1. __________ helps us to absorb the labour force coming out of agriculture.


Ans: Industrialisation

Social Science
2. By using modern methods of production, industries contribute to __________
Ans: Better productivity
3. __________ believed to generate more employment that the large-scale sector.
Ans: Small scale industries.
4. T
he advantage of Industrial clusters was first observed by the famous economist
__________ Ans: Alfred Marzhall.
5. The Salem Steel Plant was set up in __________ to produce stainless steel. Ans: 1973
6. The Namakkal-Tiruchengode belt in Western Tamil Nadu is known for its __________
industry. Ans: Truck body building
7. Tamil Nadu is the biggest producer of __________ yarn in the country. Ans: Cotton
8. The MPEZ headquarters is located on in Tambaram, Chennai. Ans: GST Road
9. Tamil Nadu Small Industries Corporation Ltd., (TANSI) was formed in __________
Ans: 1965.
10. __________ is home to the largest textiles sector in the country. Ans: Tamil Nadu
11. __________ measures, exports of textiles, home furnishings and leather products began
Xth Std

to grow rapidly. Ans: Trade liberalization


12. Chennai is nicknamed as __________ because of its large auto industry base.
Ans: “The Detroit of Asia”

13. If the output is consumed by the final consumer, it is called a __________
Ans: consumer goods sector

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Ganga ECONOMICS UNIT - 5

20. “any human activity which is engaged in the conversion of raw materials into readily
usable materials is called an __________ ”. Ans: industry
21.  __________ refers to the process of using modern techniques of production to Produce
goods that are required by both consumers and other producers on a large scale.
Volume - II

Ans: Industrialisation
22. __________ and currency devaluation also helped open up export markets.
Ans: Trade liberalisation

III Choose the correct statement

2. i) Increase in trade during the colonial period led to Industrial Development.


ii) The two active ports of that period are Chennai and Tuticorin.
iii) Match factories emerged during the colonial period in Chennai.
Social Science

iv) Introduction of Airways also expanded the market for cotton yarn and trade.
a) i) and iv) is correct b) i) and ii) are correct
c) iii) and iv) is correct d) i) and iii) is correct Ans: b) i) and ii) are correct
3. i) Tamil Nadu is home to the largest textile sector in the country.
ii) Coimbatore is often referred as the ‘Manchester of India’.
iii) Tiruppur is famous for clustering of a large number of firms producing cotton
knitwear.
iv) Kanchipuram and Madurai are major centres of production of carpets.
a) i) and iv) is correct b) i) and ii) are correct
c) iii) and iv) is correct d) i) and iii) is correct Ans: d) i) and iii) are correct

IV Pick out odd one

3. Which is not It Specific Special Economic Zone?


a) Madurai b)
Coimbatore
c) Erode d)
Trichy Ans: c) Erode
4. Which one of the following is not having textile industry?
a) Sivakasi b)
Coimbatore
Xth Std

c) Karur d)
Bhavani Ans: a) Sivakasi
5. Find the add one out:
a) Textile b)
Agriculture
c) Automotive d)
Leather goods Ans: b) Agriculture

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UNIT - 5 ECONOMICS Ganga


V Match the Following

1. TIIC - a) 1965
2. TANSI - b) 1973

Volume - II
3. TANSIDCO - c) 1949
4. SPICTO - d) 1970
5. Salem Steel Plant - e) 1971
(Ans: 1 – c, 2 – a, 3 – d, 4 – e, 5–b)

1. Automobile sector - a) Dindugal


2. Jaggery Industry - b) Karur
3. Match factories - c) Chennai
4. Leather production - d) South Tamil

Social Science
5. furniture cluster - e)
Sivakasi
Ans: 1-c; 2-d; 3-e; 4-a; 5-b

VI Write Short Answer

1. What are the chief characteristics of a successful cluster?


The following are the chief characteristics of a successful cluster .
¾¾ Geographical proximity of small and medium enterprises (SMEs)
¾¾ Sectoral specialisation
¾¾ Close inter-firm collaboration
¾¾ Inter-firm competition based on innovation
¾¾ A socio-cultural identity, which facilitates trust
¾¾ Multi-skilled workforce
¾¾ Active self-help organisations, and
¾¾ Supportive regional and municipal governments
2. Write about Startup India Scheme and Standup India Scheme.
Startup India Scheme (Jan. 2016)
¾¾ It is an initiative of the Indian government.
Xth Std

¾¾ The primary objective of the scheme is the promotion of start-ups, generation of


employment and wealth creation.

Standup India Scheme (April 2016)


¾¾ It is to facilitate bank loans between Rs.10 lakh and Rs. 1 crore to at least one ST or
SC borrower and one woman borrower per bank branch for setting up a Greenfield
enterprise.

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Ganga ECONOMICS UNIT - 5

3. Define Industrialisation
¾¾ Industrialisation refers to the process of using modern techniques of production to
produce goods that are required by both consumers and other producers on a large
scale.
Volume - II

4. In which ways Industries are classified?


Industries can be classified on the basis of
(a) User (b) Type of Inputs Used
(c) Ownership (d) Size

5. What is Textile Cluster?


¾¾ Tamil Nadu is home to the largest textiles sector in the country.
¾¾ Because of the development of cotton textile industry since the colonial period,
Coimbatore often referred as the “Manchester of South India”.
Social Science

¾¾ At present, most of the spinning mills have moved to the smaller towns and villages
at a radius over 100 to 150 km around the Coimbatore city.
¾¾ Tamil Nadu is the biggest producer of cottonyarn in the country.
6. How do Cluster Originate ?
¾¾ Clusters may arise due to many factors.
¾¾ Certain clusters evolve over a long time in history when artisans settle in one locality
and evolve over centuries.
¾¾ Handloom weaving clusters are one examples of this development.

VII Write Brief Answer

3. Explain the types of industries.


Industry is the work and process involved in collecting raw materials and making them
into products in place. Industries can be classified on the basis of -
i) Users
ii) Types of inputs used
iii) Ownership
Xth Std

iv) Size
i) Users:
If the output is consumed by the final consumer, it is called a consumer goods sector. If
the output is consumed by another producer, it is called a capital goods sector. There are
industries that produce raw materials for other industries such as cement and steel. Such
industries are called basic goods industries.

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UNIT - 5 ECONOMICS Ganga
ii) Type of Inputs Used:
Industries are also classified based on the kind of raw material used such as agro-
processing, textiles sector, rubber products, leather goods, etc.
iii) Ownership:

Volume - II
Firms may be privately owned, publicly owned (by the government, central or state),
jointly owned by the private and public sector, or cooperatively owned (cooperatives).
iv) Size:
¾¾ Firms may be large, small or medium based on their volume of output, sales or
employment or on the basis of the amount of investments made.
¾¾ The Indian government normally uses the investment criterion to decide whether a
firm is small, medium or large.
¾¾ There are also micro or tiny enterprises that are smaller than even small firms.
¾¾ This classification is important because the government often provides financial,

Social Science
infrastructural or subsidy support to the smaller firms to promote them.
4. Write a note on the Role of Entrepreneur.
Entrepreneur is an innovator of new ideas and business processes. He possesses
management skills, strong team building abilities and essential leadership qualities to
manage a business.
Role of an Entrepreneur
Entrepreneurs play a most important role in the economic growth and development of a
country’s economy.
¾¾ They promote development of industries and help to remove regional disparities by
industrialising rural and backward areas.
¾¾ They help the country to increase the GDP and Per Capita Income.
¾¾ They contribute towards the development of society by reducing concentration of
income and wealth.
¾¾ They promote capital formation by mobilising the idle savings of the citizens and
country’s export trade.
¾¾ Entrepreneurs provide large-scale employment to artisans, technically qualified
persons and professionals and work in an environment of changing technology and
try to maximise profits by innovations.
Xth Std

¾¾ They enable the people to avail better quality goods at lower prices, which results in
the improvement of their standard of living.
5. Explain briefly about the SEZs.
Special Economic Zones (SEZs)
A policy was introduced on in April 2000 for the settling up of special Economic Zones in
the country with a view to a hassle-free environment for exports.

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Ganga ECONOMICS UNIT - 5

Units may be set up in SEZ units are on a self-certification basis.


The policy provides for setting up of SEZs in the public, private, joint sector or by state
governments.
It is also envisaged the some of the existing Export Processing Zones, would be converted
Volume - II

in to Special Economic Zones.


Accordingly, the government has converted Export Processing Zones located
at following places.
¾¾ Nanguneri SEZ – A multi product SEZ, Thirunelveli
¾¾ Ennore SEZ – Thermal power project, Vayalur
¾¾ Coimbatore SEZ – IT Parks
¾¾ Hosur SEZ – Auto Engineering, Electronics, Defence and
Aerospace
¾¾ Perambalur SEZ – Multi product SEZ
Social Science

¾¾ Autocity SEZ – Automobile/Auto Components, Tiruvallur


¾¾ India-Singapore SEZ – IT & ITES, Electronic Hardware, Logistics and
Warehousing – Thiruvallur District
¾¾ Bio-Pharmaceuticals SEZ – 
Clinical Research Organisation, Poison
Control Centre, Centre for Regenerative
Medicine, Medicine Research

Madras Export Processing Zone (MEPZ)


¾¾ MEPZ is a Special Economic Zone in Chennai.
¾¾ It is one of the seven export processing zones in the country set up the central
government.
¾¾ It was established in 1984 to promote foreign direct investment, enhance foreign
exchange earnings and create greater employment opportunities in the region.
¾¾ The MPEZ headquarters is located on GST Road in Tambaram, Chennai.
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