Economics

Ch-1: Development
Short Questions:

Q1. Define the term National Income.

Answer:
National income is defined as the total value of all final goods and services produced with a
country plus net income from transactions like (export and import) with other countries.

Q2. Define GDP –

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

Q3. What do you mean by per capita income?

Ans. The average income is the total income of the country divided by its total population.
The average income is also called per capita income. Thus,
= Total income of a country/ Total population of a country
Q4. Name two things which you cannot buy with money ?

Ans:
(i) A pollution-free environment
( ii) A sense of security
Q5.Give any two common developmental goals of the people.

Ans. Social equality, freedom, peace, pollution-free environment, improved health and
literacy levels, awareness and control on population are common development goals of the
people.
Q6. Mention any two developmental goals of a landless rural labourer.

Answer: (i) More days of work and better wages.

(ii) Quality education for his children.
Q7. What is the most important component for comparing different countries?
Answer: Per capita income.
Q8. Which countries have been categorised as rich countries according to the World
Development Report?
Answer: Countries with per capita income of US $ 12276 per annum and above in 2010 are
called rich countries.
Q9. What is Literacy Rate?
Answer: It measures the proportion of literate population in the seven and above age group.
Q10. What is Gross Enrolment Ratio?

Answer: It is the enrolment ratio for primary, secondary and higher education.
Q11. Which Indian state has the lowest Infant Mortality Rate ?
Answer: Kerala.
Q12.What are the three components of human Development Index?

Answer: (i) Per Capita Income

(iii) Life Expectancy
(iv) Literacy Rate
Q13. If there are five persons in a family with income of Rs.6000, Rs.5000, Rs.4000,Rs.3000,
Rs.2000, what is the average income of a person?

Answer: Rs.4000.
Q14. What is HDI ? Which institution publish it ?
Answer:
HDI stands for Human Development Index.

It is published by UNDP.
UNDP - United Nations Development Programme
Q15. In which states in India groundwater is overused ?
Answer:

Groundwater overuse is found in agriculturally prosperous regions of Punjab, Haryana and

western U.P., hard rock plateau areas of central and south India, some coastal areas and the
rapidly growing urban settlements.
Q16. Which state in India has the lowest literacy rate ?

Answer:
Bihar.
Q17. Define:
Infant mortality rate

Literacy rate
Net attendance ratio
BMI
Answer:

Infant mortality rate : It indicates the number of children that die before the age of 1 year as
a proportion of 1000 live children born in that particular year.
Literacy rate: It measures the proportion of literate population in the 7 and above age group.
Net Attendance ratio: It is the total number of children of age group 6 to 10 attending school
as a percentage of total number of children in the same age group.
BMI: stands for Body Mass Index. It is calculated by dividing the weight of a person in
kilograms (kgs) by the square of his/her height in metres. It is an indicator of the level of
nourishment in adults.
Q18. Why Kerala has a low Infant Mortality Rate ?

Answer: Kerala has low IMR because :

(i) It has very high literacy rate and literate people take care of their children better
as compared to illiterate.
(ii) Literate people also have high earning capacity so they can afford basic necessities
for their children.

Q19. What is Human Development Index?

Ans. Human Development Index is a composite index of achievements of a nation in terms of
three important variables, namely—longevity (Life Expectancy), knowledge (Literacy Rate)
and standard of living (Gross National Income ) that determine the quality of life.
Q20. Why is sustainable development essential? Give one reason.
Ans. Sustainable development aims at economic development without damaging the
environment and at the same time conserving for the future. Resources are to be used in such
a way that they are not overexploited.