1) What is meant by economic development?
The economic progress of a country is known as economic development.
2) Name the indicators of economic development.
National income and per capita income are the indicators of economic development.
3) What is inclusive growth?
Economic development of a country without excluding any section of the population from the growth progress is regarded as inclusive growth.
4) What is National Income?
The sum total of goods and services produced by a country in a year is called National income.
5) To which group India does belong as per the HDI?
India is belonged to the group of middle level with points of 0.547.
6) Who is credited with framing of the criterion of HDI?
It goes to the Pakistani economist Mehboob-Ul-Haque.
7) What is meant by women Empowerment?
Providing equal opportunities to women to work in all field and encouraging them to take social, economic & political decision like men to do is called women empowerment.
8) What is meant by women Job participation rate?
The ratio of number of women working to that of the total women in the country is known a women’s job participation rate.
9) According to the 2012 would development report which country has high income?
Japan has high income according to the 2012 world development report.
10) What is the job participation rate among women in India?
It is about 22.8% [54.6men]
11) What is the men literacy of India according to the 2011 census?
It is about 82.14%
12) What is the female literacy of India according to the 2011 census?
It is about 65.46%
2. ECONOMY AND DEVELOPMENT
1) When was the National planning commission setup? Who is the chairman of the commission?
The National planning commission came into exist in 1950. Now it is renamed as Neeti Ayoga. The prime minister of the country is its chairman.
2) Write a note on National Development council.
The National Development council was established in 1952. The chief ministers of all the states are its members. It approves the draft copy of the five year plans prepared by the National planning commission. It also attempts balanced development of all the states in India.
3) What are the objectives of five year plans?
The objective of five year plans are
a) Increasing the production to the maximum extent possible.
b) Increasing the employment opportunities.
c) Reducing economic disparities.
d) Ensuring economic stability.
e) Modernizing the economy.
4) What are the failures of five year plans?
a) There is drastic increase in inequality of income.
b) They have fail to create adequate jobs.
c) Lack of basic facilities have deepened.
d) Equality and social justice are yet to be attained.
5) What benefit were extended to small famers under the system of subsidy?
Under the system of subsidy, the government distributed seeds, fertilizers, pesticides and farm equipment at very cheap rates. In addition, provisions was made to grant loans and low interest rates from banks and co-operative societies.
6) What steps has been taken by the government towards liberalization?
a) In order to move towards free economy, the government withdrew the unnecessary rules and regulations which hampered the growth of economic activities.
b) It minimized the government intervention in the economic activities of the people.
c) It made way for competition in production and marketing.
7) What steps has been taken by the government towards privatization?
The steps taken by the government towards privatizations are
a) It relaxed the restrictions pertaining to private industry.
b) The limit of private capital investment in the industries removed.
c) Total freedom provided for establishing, expanding, existing the industries.
d) The practice of issuing license for establishing private industries is abolished.
8) What are the positive aspects of Globalization?
The positive aspects of Globalization is
a) It has enabled the inflow of modern technology and foreign investment.
b) It has improved efficiency and equality of production.
c) It has also helped in the maximum area of available resources.
d) It has enabled our economy to compete at the international level.
9) What are the ill-effects of Globalization?
The ill effects of Globalizations are:
a) Medium and small scale industries are perishing against multi-national companies.
b) Gap is widening between urban and rural communities and between rich and poor.
c) Framers suicides are increasing as agro-product do not fetch good price.
d) labours are facing insecurity.
10) What is the problem associated with Foreign Direct Investment (FDI)?
The foreign direct investments are mostly done by huge multi-National companies. Our domestic companies do not have financial or technical ability to complete with them. Therefore, many medium and small-scale industries are gradually perish. This is the major problem of FDI
3. RURAL DEVELOPMENT
1) How is economic situation in the rural areas of India?
a) Majority of the people engaged in agriculture.
b) Less income
c) Back warded small scale and cottage industries
d) 1/3 of the rural population lives in poverty.
e) Unemployment, illiteracy and ill health common in rural areas.
f) Lack of basic amentias.
To overcome these problems government introduced 3 tier panchayat Raj system.
2) Explain briefly the significance of rural development.
The significance of rural development
a) Basic amentias should be provided to the rural people.
b) Skills and capability to work should be enhanced.
c) Agriculture and its related activities should be supported that to become profitable and attractive occupation.
d) The rural people should be provided essential facilities like electricity transportation and communication.
e) Education should be provided.
f) Industrial support should be given by establishing small scale industries in rural areas.
3) Explain Gandhiji’s concept of “Grama Swarajya” in the light of decentralization.
Mahatma Gandhiji, father of our nations strongly believed that employment of villages is the real development. He declare independence should begin with villages first and each village should be a democratic unit with peoples rule. Through decentralization of power, self reliant, self sufficient and prosperous villages can be developed. This process was called grama swaraj by mahatma Gandhiji.
Decentralization may put a stop to all kinds of exploitation and emphasis the human independence and dignity and nature human values like compassion and co-operation.
4) What is the role of panchayat raj institution in rural development?
a) They provide basic facilities like water, transport, education, health etc
b) They provide employment opportunities through various programmes.
c) Social and cultural activities can be encouraged through celebration of villages fares and festivals.
d) They introduces social welfare programmes like old age pensions, pension for widow and disables etc.
e) They introduces agricultural development programmes and subsidies for farmers.
f) Self help group can also be introduce the development of rural women.
4. PUBLIC FINANCE AND BUDGET
1) Explain briefly the significance of public finance.
· The main aim of the government is welfare of the public and economic progress of the nation so it announces the fiscal policy related to its income and expenditure and debt.
· The Government formulates methods to equitably distribute the country’s natural wealth, labour and capital investment and tries to maximize the production.
· The Government, through its financial policies enhance the public expenditure in priority areas like agriculture, industries, service sector etc.. Ex. India utilize public finance in order to eradicate poverty and unemployment.
· So, the public finance gives the clear picture about income and expenditure of the government and thereby it guides the government to establish financial stability.
2) List the planned expenditure of the central Government.
The government spends money for various purposes, expenditure can be classified into two types.
1) Revenue Expenditure
2) Capital Expenditure.
1) Revenue Expenditure; The expenditure is used for various financial and social services, defense, administration, interest payments, grants to states and other purposes. This can be further divided into 2 groups called planned and non-planned expenditure.
2) Planned Expenditure : Financial Services like agriculture and its related activities like industry, communication, fuel, science and technology, rural development etc…
Social Service: Like education, health, family welfare, drinking water, supply of electricity, housing, social welfare etc…..
General Services: The expenditure incurred on maintenance of peace, law and order
3) Explain the aspects of non-tax revenue of the central Government.
The Government generates revenue from other sources. This is called non- expenditure revenue. The main types of non-tax revenue are.
1. The net profit earned by the Reserve Bank of India.
2. The net profit earned by the Indian railways, department of post and tele communication.
3. The revenue generated by public sector industries.
4. Various types of fines, fees, penalties etc.
4) What is fiscal deficit? Mention the four kinds of fiscal deficit.
In the revenue, if the Government expenditure is more than its tax revenue and non loan capital revenue, it is called fiscal revenue.
1. Fiscal deficit : Tax revenue + non plan capital revenue.
2. Budget deficit : Total Revenue – Total expenditure/
3. Tax deficit : Tax revenue – Tax expenditure.
4. Primary deficit : Fiscal deficit – Interest payment.
· The government manages the public finance through fiscal policy.
· In the budget, when the Government’s revenue is more than its expenditure it is called surplus budget.
· The revenue generated by the government through internal and external loan is - capital receipts.
· If the burden of the tax imposed by the Government can be transferred, such tax is called – Indirect tax.
· If in the budget the income and expenditure are equal it is a – balanced budget.
· Government has to get the approval of the parliament for its budget before march-31st every year.
· The policy followed by the Government with regard to its income, expenditure and loan is called – Fiscal policy.,
· Income tax is a – Direct Tax
· Excise duty is a – Indirect tax.