GRADE X ECONOMICS

CHAPTER 1: DEVELOPMENT

NOTES

Development is a process that creates growth, progress, positive change or the addition of
physical, economic, environmental, social and demographic components.
The purpose of development is a rise in the level and quality of life of the population, and the
creation or expansion of local regional income and employment opportunities, without
damaging the resources of the environment.

What Development Promises - Different Peoples, Different Goals

1. Different people - different developmental goals. (What may be development for one
may not be development for the other person. It may even be destructive for the
other.)

Income and Other Goals

• People want more income. Money, or material things that one can buy with it, is one
factor on which our life depends.
• The quality of our life also depends on non-material things such as equal treatment,
freedom, security and respect for others. For development, people look at a mix of
goals.
• The developmental goals are not only about better income but also about other
important things in life.

National Development-Different persons could have different as well as conflicting

notions of a country's development.

How to Compare Different Countries or States?

• Income is considered to be one of the most important attributes.
• Countries with higher incomes are more developed than others with less income.
• As different countries have different populations, comparing total income will not tell
us what an average person earns. So, we compare the average income of countries.
• Average income is the total income of the country divided by its total population. It is
also called per capita income.
• Average Income = Total Income of Country / Total Population of Country

In World Development Reports, per capita income is used in classifying countries.

1. Countries with per capita income of Rs.4, 53,000 per annum and above, are called
rich countries.
2. Countries with per capita income of Rs.37, 000 or less are called low-income
countries.
*India comes in the category of low middle income because its per capita income in 2023
was just 170 thousands rupees per annum.
Income and Other Criteria
 • To achieve a goal, people earn more and want Respect from others, the security of
their lives, and freedom.
• If we consider per capita in the country's development, then Goa is the most
developed and Bihar is the least developed state in India.
• Net attendance ratio: defined as the total number of children, the age group from
14 years attending the school from the total percentage of children in the same age
group.
• Literacy rate: it is the total number of people above 7 years who can write, read
and understand any one language.
• Infant mortality rate: it is the total number of children that die in one year of age
as a proportion of 1000 births in a year. It shows how efficient health facilities are
in any country. (Kerala has a low IMR because of adequate provisions of basic
health and educational facilities.)
• Body mass index (BMI) is measured to measure the adults who are
undernourished by calculating the weight of the person (kg) divided by the square
of the height. If the value is less than 18.5, the person is undernourished and if it is
more than 25, then the person is highly obese. For example, if a person weighs 70
kilograms and their height is 1.75 meters, their BMI would be calculated as
follows: BMI = 70 / (1.75)^2 BMI = 22.86
Once the BMI has been calculated, it can be interpreted using the following
categories: - Underweight: BMI below 18.5 - Normal weight: BMI between 18.5
and 24.9 - Overweight: BMI between 25 and 29.9 - Obese: BMI above 30

When we think of a nation or a region, besides average income, public facilities are equally
significant attributes.
Public Facilities:
• Public facilities play a major role in the development of the country.
• These are the facilities provided by the government like schools, transportation,
electricity, hospitals, residences, community halls, etc.
• These facilities are important as we cannot purchase every major facility.
• Example-Kerala has a low IMR because of adequate provisions of basic health
and educational facilities.

Sustainability of Development-Sustainable development is defined as development that

meets the needs of the present without compromising the ability of future generations.
Scientists have been warning that the present type and levels of development are not
sustainable.
Some of the examples are:
• Overuse of groundwater
• Exhaustion of natural resources

Human Development Index (HDI) - Access and explore human development data for 193
countries and territories worldwide.

The HDI was created to emphasize that people and their capabilities should be the ultimate
criteria for assessing the development of a country, not economic growth alone.
What is Human Development Report? Human Development Reports (HDRs) have been
released since 1990 and have explored different themes through the human development
approach. (It's published by the Human Development Report Office for the United Nations
Development Programme (UNDP).

Goal: The goal is to contribute toward the expansion of opportunities, choice and freedom.

What is the Human Development Index?

▪ HDI is a composite index that measures average achievement in human development

taking into account four indicators:
o Life expectancy at birth (Sustainable Development Goal 3),
o Expected years of schooling (Sustainable Development Goal 4.3),
o Mean years of schooling (Sustainable Development Goal 4.4),
o Gross national income (GNI) (Sustainable Development Goal 8.5).

QUESTION/ANSWERS

Q1: Why do people look at a mix of goals for development? Explain.

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

Q2: What may be development for one may not be development for the other.” Explain
with a suitable example.
Answer: Different persons have different notions of development because life situations of
persons are different. For example, Construction of dams leads to generation of
hydroelectricity, thus development. However, many people have to be displaced from their
villages, hence it may not be development for them.

Q3: Apart from income, which other six things people look for as important aspects of
our lives?

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

Q4: Why do we use averages? Are there any limitations to their use? Illustrate the
answer with your own examples related to development.

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

Q5: What is per capita income? Mention any two limitations of per capita income as an
indicator of development.

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

Q6: Kerala, with lower per capita income, has a better human development ranking
than Punjab. Hence, per capita income is not a useful criterion at all and should not be
used to compare States. Do you agree? Discuss.

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

Q7: On the basis of which three indicators of HDI 2013 Sri Lanka has better rank than
India?

Answer: Three indicators of HDI 2013 in which Sri Lanka has better rank than India:
1. Per capita income—The per capita income of Sri Lanka in US dollars was 9,250 US
dollars while that of India was 5150 US dollars.
2. Life expectancy at birth—the life expectancy at birth for Sri Lanka was 74.3, higher than
that of India at 66.4
3. Literacy rate for 15 + years population —Sri Lanka has 91.2 while that of India was 62.8.

Q8: ‘Conflicting goals can also be developmental goals’. Elaborate with examples.

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

Q9: What are common developmental goals? Give any two suitable examples of
common developmental goals.

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

Q10: “Money cannot buy all the goods and services that one needs to live well” Do you
agree with this statement? Justify your answer with any three suitable arguments.

Answer: Yes, I agree with the statement because money income and material goods alone are
not an adequate indicator of a good quality of life. Money cannot buy all the goods and
services one needs to live well.
● Money cannot buy a pollution free and dean environment with fresh air.
● It cannot protect us from infectious diseases and guarantee good health for us.
● Money cannot assure that medicines available in the market are not adulterated.
To live well one needs non-material factors such as equal treatment, freedom, security, equal
opportunity to learn, a pollution free environment, good and safe working conditions etc.
Q11: One what basis the rich and low income countries have been categorized in the
world? What are the limitations of this approach? According to the World Development
Report, 2012, India comes in which category? Give reason for the same.

Answer: The World Bank uses average income or per capita income as a criterion for
classifying different countries. Countries with per capita income of $12616 per annum and
above (in the year 2012) are called rich countries and those with per capita income of $1035
or less are called low income countries .India comes under low income countries; the per
capita income in India is US$1530 per annum. The rich countries excluding Middle East and
certain other small countries are generally called developed countries
Limitations of this criterion.
1. While averages are useful for comparison, they also hide disparities. Two countries may
have identical average income, but one country may have equitable distribution where people
are neither very rich nor very poor, while in the other country most citizens are very poor and
very few are extremely rich,
2. Better income cannot ensure a good quality life. Criterion set by the World Bank has
ignored certain attributes of a good life which do not depend on income or cannot be bought
with money For example,-freedom, equal treatment, equal opportunities, free atmosphere,
provision of unadulterated medicines, etc.

Q12: Why do different persons have different notions of development? Which of the
following explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.

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

Q13: What does HDI stand for? Explain the main criteria of measuring HDI according
to UNDP Report?

Answer: HDI Stand for Human Development Index. Main criteria of measuring HDI:
1. HDI published by UNDP compares countries based on the educational levels of the people,
their health status and per capita income.
2. HDI determines the rank of a country by its overall achievement in three areas, i.e., life
expectancy, educational level and per capita income.
3. Many improvements have been suggested in calculating HDI and many new components
have been added to Human Development Report.
4. Pre-fixing Human to Development, it has made it clear that what is important in
development is what is happening to citizens of a country, i.e., the health and well-being of
the people is most important.
Q14: Explain with examples that there are other important development goals also
besides income?

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

Q15: Explain any five fields other than income where development is needed.

Answer: Fields other than income where development is needed:

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

Q16: Explain with reasons why state of Punjab with a very high per capita income has a
low literacy rate.

Answer: Per capita income is not a useful criterion at all to measure the human development
ranking of a state. High per capita income is not the only attribute to a good quality life.
Money cannot buy all the essential things required for a good life. This can be seen in the
case of Punjab which has a very high per capita income but a low literacy rate. Having money
in one’s pocket cannot buy all the goods and services that we need to live well. Money cannot
ensure education and literacy. Another reason for low literacy rate in Punjab could be the lack
of free and compulsory educational facilities. The government needs to open more schools
and provide other facilities so that all children have a chance to study. Pollution-free
atmosphere to ensure good health, protection from infectious diseases, lowering of mortality
rate, promotion of literacy, etc. are essential for a good standard of living. In order to achieve
these, joint efforts have to be made by all members of a community, be it rich or poor.
Q17: Why are the countries of the Middle East not called ‘developed’ inspite of high per
capita income?

Answer: (i) These are small countries.

(ii) The gap between rich and poor is very high,
(iii) Though per capita income in Middle East countries is very high but there is unequal
distribution of wealth.
(iv)These countries have high per capita income due to oil production. So they have only one
major source of income.
(v) The World Development Report brought out by the World Bank has excluded these
countries from the list of developed countries.

Q18: Explain the term ‘Development’. How is it linked with sustainability? Explain
with example.
Answer: (i) Development is a process which has a notion of going further up and improving
the quality of life.
(ii) It is linked to sustainability since it has to be maintained for future generations.
(iii) Resources need to be used wisely so that they can be replenished.
(iv) Overuse of resources exhaust them. For example, petroleum.
(v) If development is not sustainable, it will give rise to environmental degradation and
become a global problem.

ASSIGNMENT

Multiple Choice Questions (MCQs)

1) For development, people look at a mix of ______.
(a) goals
(b) responsibilities
(c) accountability
(d) none of the above
2) To compare the development of countries, there _______ is considered to be one of the
most important attributes.
(a) income
(b) population
(c) demographics
(d) none of the above
3) Assume there are four families in a country. The average per capita income of these
families is Rs.5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000
respectively, what is the income of the fourth family?
(a) Rs.7500
(b) Rs. 3000
(c) Rs .2000
(d) Rs. 6000
4) Since countries have different _______, comparing total income will not tell us what an
average person is likely to earn.
(a) economic policies
(b) reserves
 (c) resources
(d) populations
5) In World Development Reports, brought out by the_________, per capita income criterion
is used in classifying countries.
(a) UNICEF
(b) World Bank
(c) World Economic Forum.
(d) United Nations
6) Development of a country can generally be determined by
(a) its per capita income
(b) its average literacy level
(c) health status of its people
(d) all the above
Assertion & Reason Question --
Option-
(a) Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of
assertion (A).
(b) Both assertion (A) and reason (R) are true but reason (R) is not the correct
explanation of assertion (A).
(c) Assertion (A) is true but reason (R) is false.
(d) Both assertion (A) and reason(R) is false.
7) Assertion (A): Developmental goals that people are not only about better income but also
about other important things in life.
Reason (R): A safe and secure environment may allow more women to take up a variety of
jobs or run a business.

8) Assertion (A): Kerala has a low Infant Mortality Rate.

Reason (R): Kerala lacks the provision of basic health and educational facilities.

9) Assertion (A) – A high average income is not indicative of the overall wellbeing of a
country.
Reason (R) – Average income does not cover human development indicators like level of
education, health and public facilities.

10) Assertion (A): The availability of resources is a necessary condition for the development
of any region, but mere availability of resources in the absence of corresponding changes in
technology and institutions may hinder development.
Reason (R): There are many regions in our county that are rich in resources but these are
included in economically backward regions.

11) Infant Mortality Rate (IMR) indicates the number of children that die before the age of
____________ as a proportion of 100 live children born in that particular year.
(a) four years
(b) one year
(c) two years
(d) three years
12) Literacy rate measures the proportion of the literate population in the _________ age
group.
(a) 10 and above
(b) 21 and above
(c) 7 and above
(d) 18 and above
13) Net Attendance Ratio is the total number of children of the age group ________ attending
school as a percentage of the total number of children in the same age group.
(a) 17 and 8 years
(b) 9 and 10 years
(c) 12 and 13 years
(d) 14 and 15 years
14) As per the 2011 census, which among the following states has the highest literacy rate?
(a) Kerala
(b) Maharashtra
(c) Bihar
(d) Odisha
15) Which of the following statements about money are true?
(a) Money cannot buy you a pollution-free environment.
(b) Money cannot ensure that you get unadulterated medicines.
(c) Money may also not be able to protect you from infectious diseases.
(d) All of the above.
Case Based Question:-
Read the extract given below and answer the questions that follow:
One way to find out if we are properly nourished is to calculate what nutrition scientists call
it Body mass index (BMI). This is easy to calculate. Let each student in the class find out his
or her weight and height. Take the weight of each student in kilograms (kg). Then, take the
height by drawing up a scale on the wall and measuring accurately with the head straight.
Convert the height recorded in centimetres into meters. Divide the weight in kg by the square
of the height. The number you get is called BMI. Then, look at the BMI-for-Age tables. A
student’s BMI could be within the normal range or less than that (underweight) or more
(obesity). For example, if a girl student is 14 years and 8 month old and the BMI is 15.2, then
she is undernourished. Similarly, if the BMI of a boy aged15 years and 6 months is 28, then
he is overweight. Discuss the life situation, food and exercise habits of students, in general,
without body shaming anyone.
1. What is Body mass index?
2. Identify the correct formula to calculate the BMI?
3. Rahul is 5 ft. 6 inches tall and he weighs 82 kilos. Calculate his BMI. According to
Rahul’s BMI, he is overweight or underweight.