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 off human
h
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 =
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.
time
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Write the meaning of secondary
data.
Data
D
t which
hi h iis already
l d collected
ll t d
by others.
Chapter-1.
ONE MARK QUESTIONS
Q: Mention the sources of secondary
data.
A) 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
data.
A) PUBLISHED SOURCES :‐
i) Govt. and non‐govt. orgns.
ii) Private agencies.
agencies
iii) Records of various depts..
Business enterprises,
enterprises research
reports.
B) Un p
published
blished Reports & Records
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is time series data?
Data
D
t collected
ll t d on th
the same
entity with different time
period.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is cross ‐section data?
Data
D
t collected
ll t d on diff
differentt
entities for a single time
period.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is survey data?
Data
D
t collected
ll t d th
through
h survey
or sample or enquiry. Ex. Exit
poll survey.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is census data?
Record
R
d off each
h and
d every item
it
of the Universe. Ex. Census
once in every ten years.
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is census data?
Record
R
d off each
h and
d every item
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
P
t ti off d
data
t with
ith th
the
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.
segments
Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: What is Structural Adjustment
Programme?
The micro
Th
i
economic
i measures
or policies adopted by the
govt. to bring the changes in
the structure of the economy.
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.
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
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
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.
TWO MARKS QUESTIONS
Q: Mention any four differences between
economic
i growth
th and
dd
development.
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
development.
• Accelerating economic growth.
• Meeting the basic needs.
• Improving
p
g the livingg standard.
• Maximising the net benefits of
economic development.
development
• Inter‐ Generational‐Equity.
• Clean environment Protection
TWO MARKS QUESTIONS
Q: Mention any four features of
developed countries
countries.
• High Per‐capita and National Income.
• Higher Industrialization.
• Higher capital formation.
• Low level of Poverty and Unemployment.
• Low Growth of Population.
• High
h level
l l off Technology.
h l
• Large Scale production of goods and
services. Etc.,
TWO MARKS QUESTIONS
Q: What is the meaning of ‘developed
country’?? Give examples.
country
examples
A Developed country is one which has
achieved maximum economic
development,
p
, where there is high
g PCI,,
High Standard of living and Natural
Resources are completely utilized.
utilized Ex.
Ex
USA, UK, AUS, CANADA, GERMANY
Etc.,
Etc
TWO MARKS QUESTIONS
Q: What are ‘developing countries’?
Give examples.
examples
A Developing country is one which is
achieving progress in economic,
social and other sectors byy usingg its
natural resources. Ex. India, China,
Brazil etc
Brazil,
etc.,
TWO MARKS QUESTIONS
Q: List the differences between primary
and secondary data.
data
PRIMARY DATA
• Original.
Original
• Collected for the
first time.
• They are like Raw
materials.
• Collection is costly.
• Less reliable.
• No extra care is
needed.
SECONDARY DATA
• 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.
3. Captions and Stubs.
4 Body of the Table
4.
Table.
5. Head Note
6 Foot
6.
F t note.
t
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.
reforms
4. Trade and capital inflow
reforms.
f
Et
Etc.,
TWO MARKS QUESTIONS
Q: Name the stabilization programmes.
1.Fiscal sector reforms.
2 Financial sector refirms.
2.
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?
The following changes in the
Indian economy over the last 60
years clearly prove that India is a
developing economy:‐
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy?
India s Net National Product
India’s
(NNP) at factor cost (national
income) was Rs.1,32,367
Rs 1 32 367 crore in
1950‐51 and it has increased to
Rs.64,66,860 crores in
i 2010‐2011
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy?
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?
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?
There is continuous rise in
agricultural production and India
has achieved the stage of self
self‐
sufficiency in terms of food grains.
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?
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?
There has been substantial
progress in science and
technology. Sophisticated
machines and instruments are
produced within the country with
the indigenous scientific and
technical
h i l kknow‐how.
h
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy?
There has been a considerable
improvement in the provision
of infrastructural facilities and
social security services.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy?
Transport and communication
facilities have been extended
and there has been a
remarkable improvement in
power supply
supply.
FIVE & TEN MARKS QUESTIONS
Q: Why is India Called a developing
economy?
Banking and financial facilities have
been expanded.
Over th
O
the llastt 60 years, the
th inequalities
i
liti in
i
the distribution of income and wealth
h
have
been
b
reduced
d d through
th
h progressive
i
taxation, increased public expenditure,
social
i l security
it measures etc.
t
FIVE & TEN MARKS QUESTIONS
Q: Why is India called a developing
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 infrastructure
for
f
and
d smallll Industries.
d
• New incentives to tax savers.
• Increasing service taxes and
d reduction
d
off
subsidies,
• Widening
id i the
h tax base
b
to bring
b i more
revenue to the government
f ex:‐ withdrawal
for
i hd
l tax off 2005.
• Introduction of Value Added Tax.
FIVE & TEN MARKS QUESTIONS
b: Industrial sector reforms
• Abolition
Ab li i off licensing
li
i system and
d lif
lifting
i allll
restrictions on private industries.
• Reduction
R d ti off public
bli sector
t industries
i d t i to
t
only 3 areas and all other Industries are left
t private
to
i t sector.
t This
Thi gave a big
bi boost
b t for
f
the growth of private sector in India.
• Foreign
F i direct
di t investment
i
t
t limit
li it was raised
i d
from 40% to 51%
FIVE & TEN MARKS QUESTIONS
b: Industrial sector reforms
• Giving
Gi i automatic
t
ti approvall for
f foreign
f i
technology agreements.
• Government brought several changes
in the MRTP Act.
• Special
p
incentives have been given
g
for
export industries.
• Encouraging private industries in
infrastructure sectors.
• Government allowed 100% foreign
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
banks.
• New generation private banks and foreign
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
d i off b
budgetary
d
support to
public sector industries.
FIVE & TEN MARKS QUESTIONS
e: External sector reforms
• Reduction of import taxes from 300%
to just 58%.
• Full convertibility of rupee in the current
account has been introduced to promote
exports.
• Quota system has been abolished
and bi
bi‐lateral
lateral trade agreements
have been encouraged.
Settingg up o
of SSEZss to e
encourage
cou age e
exports
po ts
• Sett