Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is economic growth?
A process where by real per
capita income increases
over a long
g period
p
of time.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: what is economic development?
Economic Growth coupled
with the structural changes in
the Economy.
y
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is dual economy?
Co‐existence of both ancient and modern technologies in the economy.
y
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Who used the term ‘sustainable
development’ for the first time?
Brundtland
d l d Commission. Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Write the formula to find PQLl.
LEI IMI BLI
PQLI = LEI+IMI+BLI
3
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is the meaning of human
development index?
Measurement of human fh
development through longetivity, health and education, and standard p p
of life of the people.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Write the formula to find HDI.
LEI+EAI+SLI
HDI
HDI =
3
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is primary data?
Data which is originally g
y
collected by an investigator for the first time
the first time.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Write the meaning of secondary data.
Data which is already collected D
t hi h i l d
ll t d
by others.
Chapter-1.
ONE MARK QUESTIONS
Q: Mention the sources of secondary Mention the sources of secondary
data.
A) PUBLISHED SOURCES :‐
PUBLISHED SOURCES
i) Govt. and non‐govt. orgns. ii) Private agencies.
iii) Records of various depts.. Business enterprises, research
reports.
Chapter-1.
ONE MARK QUESTIONS
Q: Mention the sources of secondary Mention the sources of secondary
data.
A) PUBLISHED SOURCES :‐
PUBLISHED SOURCES :‐
i) Govt. and non‐govt. orgns. ii) Private agencies.
ii) Private agencies
iii) Records of various depts.. Business enterprises research
Business enterprises, research
reports.
B) Un p blished Reports & Records
B) Un published Reports & Records
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is time series data?
Data collected on the same D
t
ll t d
th
entity with different time period. Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is cross ‐section data?
Data collected on different D
t
ll t d
diff
t
entities for a single time period.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is survey data?
Data collected through survey D
t
ll t d th
h
or sample or enquiry. Ex. Exit poll survey. Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is census data?
Record of each and every item R
d f
h d
it
of the Universe. Ex. Census once in every ten years.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is census data?
Record of each and every item R
d f
h d
it
of the Universe. Ex. Census once in every ten years.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is a Table?
Systematic arrangement of
Statistical data in columns &
Rows.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Bar‐Diagramme?
Presentation of data with the P
t ti
f d t ith th
help of equidistant rectangles. Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Pie‐Diagramme?
Representation of data in the form of a circle which includes different segments
different segments.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Structural Adjustment
Programme?
The micro economic measures Th
i
i
or policies adopted by the govt. to bring the changes in the structure of the economy
the structure of the economy.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is stabilization programme?
Measures to maintain balance and to avoid higher variations in the economy
in the economy. Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: When was New Economic Reforms
introduced? In the year 1991
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Globalisation?
Opening up of the Indian economy to world market by attaining International
attaining International competitiveness.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Give the meaning of Privatisation.
Sale of Govt. owned equity in Nationalized industries or other commercial enterprises
other commercial enterprises to pvt. Investors.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Liberalisation?
Removal of controls and hurdles imposed by Govt. on the economy.
the economy.
TWO MARKS QUESTIONS
Q: Mention any four differences between
economic growth and development.
i
th d d l
t
GROWTH
• Quantitative
• Measurement in
terms of PCI.
• Macro Economic
study.
• Narrow concept.
p
DEVELOPMENT
• Qualitative
• In terms of
National Income.
• Micro Economic
study.
• Wider concept.
p
TWO MARKS QUESTIONS
Q: Mention the features(objectives)
of sustainable development
of sustainable development.
• Accelerating economic growth.
• Meeting the basic needs.
• Improving the living standard.
p
g
g
• Maximising the net benefits of economic development
economic development.
• Inter‐ Generational‐Equity.
• Clean environment Protection
• Clean environment Protection
TWO MARKS QUESTIONS
Q: Mention any four features of
developed countries
developed countries.
• High Per‐capita and National Income.
• Higher Industrialization.
• Higher capital formation.
• Low level of Poverty and Unemployment.
• Low Growth of Population.
• High level of Technology.
hl l f
h l
• Large Scale production of goods and
services. Etc.,
TWO MARKS QUESTIONS
Q: What is the meaning of ‘developed
country’?? Give examples.
country
Give examples
A Developed country is one which has achieved maximum economic
development, where there is high PCI, p
,
g
,
High Standard of living and Natural Resources are completely utilized Ex
Resources are completely utilized. Ex. USA, UK, AUS, CANADA, GERMANY Etc.,
Etc
TWO MARKS QUESTIONS
Q: What are ‘developing countries’? Give examples
Give examples.
A Developing country is one which is achieving progress in economic, social and other sectors by using its y
g
natural resources. Ex. India, China, Brazil etc
Brazil, etc.,
TWO MARKS QUESTIONS
Q: List the differences between primary
and secondary data
and secondary data.
PRIMARY DATA
• Original
• Original.
• Collected for the
first time.
• They are like Raw
materials.
• Collection is costly.
• Less reliable.
• No extra care is
• No extra care is
needed.
SECONDARY DATA
• Not Original
• Not Original
• Already collected by
others.
• Like final goods
• Cheap and easy.
• More reliable.
• Extra care is must in
use
use.
TWO MARKS QUESTIONS
Q: Name the parts of a Table.
1. Table No.
2. Title.
2. Title.
3. Captions and Stubs.
4 Body of the Table
4. Body of the Table.
5. Head Note
6 F t t
6. Foot note.
7. Source note.
TWO MARKS QUESTIONS
Q: State the structural adjustment
programmes.
programmes
1. Industrial De‐regulation. g
2. Dis‐lnvestments.
3 Public enterprises reforms
3. Public enterprises reforms. 4. Trade and capital inflow
reforms. Etc.,
f
Et
TWO MARKS QUESTIONS
Q: Name the stabilization programmes.
1.Fiscal sector reforms. 2 Financial sector refirms
2. Financial sector refirms.
3. Foreign exchange rate policy reforms. f
4. Wage and Income policy reforms.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
The following changes in the The
following changes in the
Indian economy over the last 60 years clearly prove that India is a
years clearly prove that India is a developing economy:‐
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
India s Net National Product India’s
Net National Product
(NNP) at factor cost (national income) was Rs 1 32 367 crore in income) was Rs.1,32,367 crore
in
1950‐51 and it has increased to Rs.64,66,860 crores in 2010‐2011
i
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
There is a rise in PCI from There
is a rise in PCI from
Rs. 3,687 in 1950‐51 to Rs. 54,527 in 2010‐2011.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
The share of tertiary sector The
share of tertiary sector
(service sector) in the gross domestic product has increased from 27.5% in 1950‐51 to 57.7% in 2010‐11
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
There is continuous rise in agricultural production and India has achieved the stage of self‐
has achieved the stage of self
sufficiency in terms of food grains. It is also able to build up buffer
It is also able to build up buffer stocks of food grains for lean periods.
i d
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
At present there is growth of basic capital goods industries. A large number of industries have been developed in large scale like iron and steel, heavy chemicals, nitrogenous, fertilizers heavy engineering, machine tools, aluminum, petroleum products. Etc. FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
There has been substantial progress in science and technology. Sophisticated
technology. Sophisticated machines and instruments are produced within the country with
produced within the country with the indigenous scientific and technical know‐how.
h i lk
h
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
There has been a considerable improvement in the provision of infrastructural facilities and
of infrastructural facilities and social security services.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
Transport and communication facilities have been extended and there has been a
and there has been a remarkable improvement in power supply
power supply.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy? economy?
Banking and financial facilities have been expanded.
Over the last 60 years, the inequalities in O
th l t 60
th i
liti i
the distribution of income and wealth h
have been reduced through progressive b
d d th
h
i
taxation, increased public expenditure, social security measures etc.
i l
it
t
FIVE & TEN MARKS QUESTIONS
Q: Why is India called a developing
economy? economy?
There have been desirable changes in the society over the last 60 years because of urbanisation and the spread of education. The caste system, untouchability and superstitious beliefs are on the decline.
FIVE & TEN MARKS QUESTIONS
Q: Explain Economic Reforms of Main
Sectors. Sectors
The economic reforms introduced by the Government of India since July 1991 may be discussed under the following sectors. a: Fiscal sector reforms b: Industrial sector reforms c: Financial sector reforms d: Public sector reforms e: External sector reforms FIVE & TEN MARKS QUESTIONS
a: Fiscal sector reforms • Exemption limit of income tax has increased to Rs. 1,60,000 per year
• Reduction of the rate of income tax from 40% to 30%.
• Reduction of corporation tax on domestic companies to 30%.
• Reduction of export import tax from
300% to 58%.
FIVE & TEN MARKS QUESTIONS
• Five yeas tax holiday has been introduced
f
for infrastructure and small Industries.
f
d
ll d
• New incentives to tax savers.
• Increasing service taxes and reduction of
d d
f
subsidies,
• Widening the tax base to bring more
id i
h
b
bi
revenue to the government f
for ex:‐
withdrawal tax of 2005.
i hd
l
f
• Introduction of Value Added Tax.
FIVE & TEN MARKS QUESTIONS
b: Industrial sector reforms • Abolition of licensing system and lifting all
Ab li i
f li
i
d lif i
ll
restrictions on private industries.
• Reduction of public sector industries to R d ti
f bli
t i d ti t
only 3 areas and all other Industries are left
t
to private sector. This gave a big boost for
i t
t Thi
bi b t f
the growth of private sector in India.
• Foreign direct investment limit was raised
F i di t i
t
t li it
i d
from 40% to 51%
FIVE & TEN MARKS QUESTIONS
b: Industrial sector reforms • Giving automatic approval for foreign
Gi i
t
ti
lf f i
technology agreements.
• Government brought several changes
• Government brought several changes
in the MRTP Act. • Special incentives have been given for
p
g
export industries.
• Encouraging private industries in
infrastructure sectors.
• Government allowed 100% foreign
investment in selected industries, investment in selected industries
FIVE & TEN MARKS QUESTIONS
c: Financial sector reforms • Liberalisingg the restrictions on banks and other
financial institutions.
• Deregulation of lending rates and giving
freedom for banks.
• Progressive reduction of CRR & SLR
• Giving complete autonomy to public sector banks
• Giving complete autonomy to public sector banks.
• New generation private banks and foreign insurance companies are allowed to function insurance companies are allowed to function
parallel with public sector banks.
• Empowerment of securities and exchange board of India (SEBI)
FIVE & TEN MARKS QUESTIONS
d: Public sector reforms • The number of industries reserved for public p
sector have been reduced form 17 to 3 • The major sick industries will be either closed or transferred to private sector.
• Selling the shares of public sector industries to private people.
• Government has introduced VRS
• Reduction of budgetary support to d i
fb d
public sector industries.
FIVE & TEN MARKS QUESTIONS
e: External sector reforms • Reduction of import taxes from 300% Reduction of import taxes from 300%
to just 58%.
• Full convertibility of rupee in the current
Full convertibility of rupee in the current
account has been introduced to promote
exports.
• Quota system has been abolished and bi‐lateral
and bi
lateral trade agreements trade agreements
have been encouraged.
Sett g up o S s to e cou age e po ts
• Setting up of SEZs to encourage exports