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Chapter 1: Development

1. What is the main criterion used by the World Bank in classifying different countries? What
are the limitations of this criterion, if any?

o Criterion: Per capita income. Limitations: Ignores inequality, health, and education.

2. In what respects is the criterion used by the UNDP for measuring development different
from the one used by the World Bank?

o UNDP: Uses HDI (Health, Education, Income). World Bank: Uses per capita income.

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

o Averages: Simplify data. Limitations: Mask inequalities. Example: A high average income
can hide poverty.

4. Kerala, with lower per capita 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.

o Agree: Kerala's focus on health and education shows development isn't just about income.

5. Find out the present sources of energy used by people in India. What could be the
possibilities fifty years from now?

o Present: Fossil fuels, renewables, and biomass. Future: Likely to focus on solar, wind, and
hydrogen.

6. Why is the issue of sustainability important for development?

o Sustainability ensures resources meet present needs without compromising future

generations.

7. What are the factors important other than income?

o Health, education, environment, and equality.

8. What do you understand by the term ‘Life Expectancy’?

o Average years a person is expected to live.

9. Explain Per Capita Income?

o Total income divided by population.

10. What is Infant Mortality rate?

 Number of infant deaths per 1,000 live births.

11. What is Life Expectancy at Birth?

 Average years a newborn is expected to live.

12. What is Net Attendance Ratio?

 Percentage of children attending school in a specific age group.

13. What is Gross Enrolment ratio?

 Total enrollment in a level of education as a percentage of the population of official age.

14. Why do different persons have different notions of development? Explain.

 People’s goals differ based on needs, culture, and resources.

15. “Conflicting goals can be development goals”. Elaborate with examples.

 Example: Economic growth vs. environmental protection.

16. “Average income is an important Criterion for Development”. Justify.

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 It gives a basic measure of economic well-being but doesn’t capture quality of life.

17. Compare the aspirational goals of a boy from a rich urban family and a girl from a rich
urban family.

 A boy might focus on career, while a girl may balance career and family.

18. Explain the meaning of HDI. Mention three components of measuring HDI.

 HDI: Human Development Index, based on life expectancy, education, and income.

19. What do you understand by sustainability of development? What can be done to make
development sustainable?

 Development should meet present needs without harming future generations. Renewable energy and
waste reduction promote sustainability.

20. Mention the differences between developed Countries and developing Countries.

 Developed countries have higher income, industrialization, and living standards; developing countries
face infrastructure and income challenges.

Chapter 2: Sectors of Indian Economy

1. Tertiary sector is not playing any significant role in the development of Indian economy”.
Do you agree? Give reasons in support of your answer.

o Disagree: Tertiary sector (services like IT, healthcare) is crucial for GDP growth.

2. How is the tertiary sector different from other sectors? Illustrate with a few examples.

o Tertiary involves services like banking and education, unlike primary (agriculture) and
secondary (manufacturing).

3. What do you understand by disguised unemployment? Explain with an example each from
the urban and rural areas.

o Disguised unemployment: More people working than necessary. Example: Extra workers in
agriculture (rural) and small shopkeepers (urban).

4. In which sector are the terms of employment regular?

o Public sector and large private companies.

5. State any two activities which do not come under the primary sector.

o Manufacturing and service industries.

6. How is GDP calculated?

o Sum of all goods and services produced in a country.

7. Why is tertiary sector also called ‘service sector’?

o It involves services like healthcare, education, and banking.

8. What do you mean by ‘Unorganised Sector’? Give two disadvantages of the unorganised
sector.

o Unorganised sector: Informal jobs without regulations. Disadvantages: Low wages, no job
security.

9. Other than agriculture, in which sectors can underemployment occur?

o Small-scale industries and service sectors.

10. Explain the objective of implementing the MGNREGA 2005.

 To provide employment through public works in rural areas.

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11. How would income and employment increase if farmers were provided with irrigation and
marketing facilities?

 Increased crop yields and better market access lead to higher income and employment.

12. Distinguish between Public Sector and Private Sector.

 Public sector is government-owned; private sector is owned by individuals or corporations.

13. Explain any five reasons for service sector growth in India.

 Globalization, IT boom, financial services growth, government policies, and urbanization.

14. “When a country develops, the contribution of primary sector declines and that of
secondary and tertiary sector increases”. Analyze the statement.

 Development leads to more industrial and service activities, reducing reliance on agriculture.

15. What are the various ways to provide employment opportunities in rural areas?

 Promote agro-based industries, rural services, and skill development programs.

16. What are the different types of unemployment in India?

 Structural, frictional, and disguised unemployment.

Chapter 3: Money and Credit

1. How does money solve the problem of double coincidence of wants?

o Money eliminates the need for both parties to want each other’s goods simultaneously.

2. Explain with an example of your own.

o A farmer exchanges produce for money and buys goods with it.

3. How do banks mediate between those who have surplus money and those who need
money?

o Banks lend to borrowers using deposits from savers.

4. What is Cheque?

o A written order directing a bank to pay a specific amount.

5. Why is it difficult for poor to get loan from Banks?

o Lack of collateral and credit history.

6. “Money in your pocket cannot buy all the goods and services that you may need to live
well.” Is it true or not? Elucidate.

o True, as money can't buy happiness or health.

7. What is a ‘Debt Trap’?

o When a borrower is unable to repay loans and keeps borrowing more.

8. What do you mean by collateral?

o An asset pledged to secure a loan.

9. Sumit is using his money to buy assets like house, commercial land, and machines. Write
what is he actually doing?

o He’s investing in assets for long-term wealth creation.

10. How do the deposits with Banks become their source of income?

 Banks lend out deposits at interest rates higher than what they pay to depositors.
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11. Why one cannot refuse a payment made in rupees in India?

 Rupees are legal tender in India.

12. “Banks are efficient medium of exchange”. Support the statement with an argument.

 Banks facilitate easy financial transactions, making exchanges quick and secure.

13. State any three advantages of an ATM.

 Convenience, 24/7 access, and quick transactions.

14. Explain any three loan activities of Banks in India.

 Provide personal loans, business loans, and home loans.

15. Why do we need to expand formal sources of credit in India? Give three reasons.

 To provide affordable credit, reduce dependence on informal sources, and ensure better regulation.

16. “Credit has its own unique role for development”. Justify the statement with arguments.

 Credit supports business growth, job creation, and infrastructure development.

17. Explain the values which a borrower should observe for the proper use of loan taken.

 Responsible borrowing, timely repayment, and productive use of funds.

18. Why are poor households still dependent on informal sources of credit?

 Due to lack of access to formal credit and collateral.

19. “Self-help Groups” help borrowers to overcome the problem of lack of collateral.” Examine
the statement.

 SHGs provide credit without collateral, encouraging savings and group responsibility.

20. How do formal and informal sources of credit differ from each other?

 Formal sources are regulated, while informal sources are unregulated and often exploitative.

21. How does RBI supervise banks?

 RBI ensures banks follow regulations, maintain financial stability, and provide customer protection.

22. Why is it necessary that banks and co-operatives increase their lending in rural areas?
Explain.

 Rural areas need more credit for agriculture, development, and improving living standards.

Chapter 4: Globalisation and the Indian Economy

1. What do you understand by Globalisation? Explain in your own words.

o Globalisation is the integration of national economies through trade, investment, and

technology.

2. What were the reasons for putting barriers to foreign trade and foreign investment by the
Indian government? Why did it wish to remove these barriers?

o Barriers protected domestic industries. They were removed to boost competition and growth.

3. How would flexibility in labour laws help companies?

o Flexibility helps companies reduce costs and adapt to market needs.

4. What are the various ways in which MNCs set up or control production in other countries?

o MNCs set up subsidiaries, joint ventures, or outsource production to developing countries.

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5. Why do developed countries want developing countries to liberate their trade and
investment? What do you think should the developing countries demand in return?

o Developed countries want access to cheaper labor and raw materials. Developing countries
should demand technology and fair trade practices.

6. “The impact of globalisation has not been uniform”. Explain this statement.

o Globalisation benefits some while harming others, creating inequality.

7. How has liberalisation of trade and investment policies helped the globalisation process?

o Removing trade barriers boosted foreign trade, investment, and global integration.

8. How does foreign trade lead to integration of markets across countries? Explain with an
example other than those given here.

o Example: India’s mobile phones are sold globally, integrating markets.