MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy

MP Board Class 11th Economics Studies Book Solutions अर्थशास्त्र Chapter 5 Current Challenges Facing Indian Economy – NCERT पर आधारित Text Book Questions and Answers Notes, pdf, Summary, व्याख्या, वर्णन में बहुत सरल भाषा का प्रयोग किया गया है.

MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy

Question 1.
Choose the correct option:

Question (a)
It is found in rural areas of India:
(a) Educated unemployment
(b) Disguised unemployment
(c) Seasonal unemployment
(d) Frictional unemployment.
Answer:
(b) Disguised unemployment

Question (b)
What is important in organic farming:
(a) Crop rotation
(b) Animal manure
(c) Mechanical agriculture and Natural fertilizer control
(d) All of the above.
Answer:
(d) All of the above.

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Question (c)
Fair in villages are held:
(a) Weekly
(b) Fortnightly
(c) Daily
(d) On special occasions.
Answer:
(a) Weekly

Question (d)
In 1951 number of universities in country:
(a) 25
(b) 27
(c) 36
(d) 53.
Answer:
(b) 27

Question (e)
When was state of Madhya Pradesh established:
(a) 1948
(b) 1956
(c) 1961
(d) 1856.
Answer:
(b) 1956

Question (f)
When price index increases it means:
(a) Value of currency increases
(b) Value of currency decreases
(c) No effect of value of currency
(d) None of the these.
Answer:
(b) Value of currency decreases

Question (g)
Element of commercial energy:
(a) Coal
(b) Petroleum
(c) Gas and electricity
(d) All.
Answer:
(d) All.

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Question (h)
Energy from hot spring:
(a) Small hydro power
(b) Biomass
(c) Geothermal energy
(d) Hydro – electricity
Answer:
(c) Geothermal energy

Question (i)
In india supply of electricity started first:
(a) In Delhi
(b) In Chennai
(c) In Darjeeling
(d) In Bhopal.
Answer:
(c) In Darjeeling

Question (j)
National literacy mission is related to:
(a) Primary education
(b) High education
(c) Rural
(d) Adult education.
Answer:
(d) Adult education.

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Question 2.
Fill in the blanks:

Economic development is ……………………..
Per capita income = ……………………….. /Total population.
Universal indicator of Quality of life is ………………………….
Economic development leads to …………………….. pollution.
In approx ……………………….. % cities of India amount of sulphur – dioxide and S.P.M. is maximum.
…………………… is a challenge for Indian economy.
For poverty eradication in Aug 1979 ………………………… plan was started.
Nehru employment plan was started in …………………………
…………………………… % of Indian population lives in villages.
Main problems of farmers is …………………….. and ………………………..
Duration of ………………………….. loan is 15 months to 5 years.
………………………. is physical capital.
In order to improve quality of school education ……………………….. is the best organisation.
In India for every 100 people there are ………………………………
Repo Rate causes increase in consumption expenditure and …………………………… expenditure.
Answer:

Continuous
National income
Three
Environment
20
Unemployment
Trisem
28 April 1989
74 – 3%
Agriculture finance
Temporary
Dynamic
NCERT
40
Investment.
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Question 3.
Match the columns:
MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy img 1
Answer:

(b)
(d)
(f)
(g)
(a)
(i)
(l)
(n)
(c)
(e)
(k)
(h)
(j)
(o)
(m).
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Question 4.
State true or false:

Poverty line is same for rural and urban areas.
Trisem plan is working at present.
Bio farming and organic farming are different.
Proportion of man in working population is higher to woman.
Rate of participation of women in rural areas as compared to urban area is higher.
By the end of 11 plan no. of unemployed people will be 480 lakh.
Inflation results in favourable settlement.
Economic development is a short term process.
Indian medical has six recognition system.
With the passing time use of electricity is decreasing in agriculture.
Life expectancy of women is less as compared to man.
Forest destruction is a result of soil erosion.
Environment includes biological and non – biological elements.
Midday meal programme started from 15 August 1995.

Answer:

False
False
False
False
True
True
False
False
True
False
False
True
True
True.
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Question 5.
Answer in one word:

Reason for poverty in India.
Person who is willing to work and have qualification too but could not get job.
Farming were chemical fertilizer and insecticides are not used.
This type of marketing started in 1912 in India.
Reason for rural unemployment.
When was NABARD was established.
Answer:

Increase in population
Unemployed
Organic farming
Agriculture
Mechanization of agriculture
12 July.
Current Challenges Facing Indian Economy Very Short Answer type Questions

Question 1.
Define Poverty?
Answer:
Poverty refers to a state in which an individual is unable to fulfill even the basic necessities of life.

Question 2.
What are the two sources of Human capital of a nation?
Answer:

Investment in Education
Investment in health.
Question 3.
Name two indicators of educational achievement of a nation?
Answer:

Primary Education
Youth literacy rate
Adult literacy rate.
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Question 4.
What is worker?
Answer:
All those persons who are engaged in various economic activities and hence . contribute to gross domestic products, are workers.

Question 5.
Define worker population ratio?
Answer:
Worker population ratio is defined as the percentage of total population which is actively contributing to GDP of the nation.

Question 6.
Are the following workers: a beggar, a thief, a smuggler, a gambler? Why?
Answer:
These are not workers because they are not involved in any economic activity and hence not contributing to GDP of the nation.

Question 7.
What are the various non – commercial sources of energy?
Answer:
The various sources of non – commercial energy are:

Agricultural wastes
Firewood
Dried dung.
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Question 8.
What are the basic sources of generating power?
Answer:
The basic sources of generating power are:

Water
Coal
Oil.
Question 9.
What is sustainable development?
Answer:
It is the development that meets the need of the present generation without compromising the ability of the future generation to meet their own needs.

Question 10.
What happens when the rate of resource extraction exceeds that of their regeneration?
Answer:
Environmental crisis occur when the rate of resource extraction exceeds that of their regeneration.

Question 11.
What is poverty line?
Answer:
Poverty line may be defined as a cut off point on the line of distribution which divides the population as poor and non – poor. People with income below poverty line are poor and people with income above poverty line are non – poor.

Question 12.
What is the factor considered while defining poverty line in India?
Answer:
Consumption of calories by people.

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Question 13.
What is the measure of poverty line in India?
Answer:
Those people who do not get 2000 calories in cities and 2400 calories in villages are called poor.

Question 14.
Who thought about poverty line before independence in India?
Answer:
Dadabhai Naoroji.

Question 15.
Which organization collects data on poverty in India?
Answer:
Planning commission.

Question 16.
When was food for work programme started?
Answer:
In 1970.

Question 17.
Give two examples of self – employment programmes?
Answer:

Swamajayanti Gram Swarozgar Yojana.
Sampooma Grameen Rozgar Yojana.
Question 18.
What is agricultural diversification?
Answer:
Diversification towards new areas such as livestock, fisheries and other non- agricultural activities is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to our rural people.

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Question 19.
What is Human capital?
Answer:
It represents enhanced labour productivity, which is an acquired ability and an outcome of deliberate investment decisions with an expectation that it will increase future income sources.

Question 20.
What is human capital formation?
Answer:
Human capital formation implies the additions to the stock of abilities and skills among the population of the country.

Question 21.
When are people considered as the asset of a nation?
Answer:
When people are educated, healthy and having working ability.

Question 22.
When are people considered as liability of a nation?
Answer:
When people are unhealthy and illiterate.

Question 23.
Define Training?
Answer:
Training is that process which increases the ability, skills and capability of employees.

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Question 24.
Out of the total educational expenses of India in which education major part is invested?
Answer:
Primary education.

Question 25.
What is the difference between human capital and human development?
Answer:
Human capital is a means while human development is ends.

Question 26.
What is education?
Answer:
Education means attaining knowledge in schools and colleges.

Question 27.
What is the difference between education and literacy?
Answer:
Literacy is a narrow concept while education is a wider concept.

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Question 28.
What is life expectancy?
Answer:
Life expectancy at a specified age is the average the people at that specified age at a given point of time.

Question 29.
What is maternal mortality rate?
Answer:
The annual ratio of death of mothers during delivery period and birth is called maternal mortality rate.

Question 30.
What is mortality rate?
Answer:
Mortality rate is the annual number of deaths per 1000 people.

Question 31.
What is Infant mortality rate?
Answer:
The ratio of children died before one year and birth of children in same year is called infant mortality rate.

Question 32.
What is the traditional source of agricultural credit?
Answer:
Indigenous bankers.

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Question 33.
When was NABARD formed?
Answer:
In 1982.

Question 34.
What is NABARD?
Answer:
NABARD is an apex body to co – ordinate the activities of all institutions involved in the rural financing system.

Question 35.
What is Golden Revolution?
Answer:
The period between 1991 – 2003 is known as period of golden revolution because during this period the planned investment in horticulture became highly productive and the sector emerged as sustainable livelihood option.

Question 36.
Why is diversification needed?
Answer:
To reduce the risk in agriculture.

Question 37.
What is operation flood?
Answer:
It is a system whereby all formers can pool their milk produced according to different grading and the same is processed and marketed to urban centers through co – operatives.

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Question 38.
What is organic farming?
Answer:
The whole system of fanning that restores, maintains and enhances the ecological balance is called organic farming.

Question 39.
What is co – operative marketing?
Answer:
Under this system, farmers get together and form marketing societies to sell the produce collectively and take benefit of collective bargaining to secure a better price of their product.

Question 40.
What is agricultural credit?
Answer:
Agricultural credit means that credit which is required for agricultural work, e.g., for purchasing seeds, manure, machinery, etc.

Question 41.
What are regular workers?
Answer:
Regular workers are hired on permanent basis.

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Question 42.
What are casual workers?
Answer:
Causal workers are not hired on permanent basis.

Question 43.
What is labour force?
Answer:
Labour force refers to the number of persons who are working and those who are not working but are able and willing to work at the existing wage rate.

Question 44.
What is formal sector?
Answer:
It is an organized sector which includes all the public sector enterprises and private enterprises which employ 10 or more than 10 workers.

Question 45.
What is informalisation of employment?
Answer:
Informalisation of employment means those private industries where labour laws are not implemented.

Question 46.
What is unemployment?
Answer:
Unemployment means open involuntary unemployment. It is a situation under which those who are willing not to get work.

Question 47.
Which type of unemployment is found in agricultural sector?
Answer:
Disguised unemployment.

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Question 48.
What is open unemployment?
Answer:
It refers to the unemployment in which people are able and willing to work but fail to get work.

Question 49.
What is seasonal unemployment?
Answer:
When workers does not get employment whole year or in all seasons means they have work for 5 to 6 month and remains unemployed for the remaining is called seasonal unemployment.

Question 50.
What is disguised unemployment?
Answer:
Disguised unemployment may be defined as a situation where more people work than what is required.

Question 51.
When was National Rural employment guarantee act passed?
Answer:
In 2005.

Question 52.
What is Infrastructure?
Answer:
Infrastructure means a network of physical facilities and public services which supports an economic system to work effectively and efficiently.

Question 53.
What is economic infrastructure?
Answer:
It includes those aspects of economic system which provides a support to the process of economic development.

Question 54.
What is social infrastructure?
Answer:
It includes those aspects of economic system which provides a support to the process of social development.

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Question 55.
How has Punjab, Haryana and Himachal Pradesh developed in agriculture and farming?
Answer:
Due to better irrigation facilities.

Question 56.
Why is Gujarat and Maharashtra far ahead than other states in terms of Industries?
Answer:
Because they have better means of transportation and are situated near ports which helps in easily receiving of raw – materials.

Question 57.
Why does Bangalore attracts many multinational companies?
Answer:
Because here world class means of communication is available.

Question 58.
What is commercial source of energy?
Answer:
The energy which is largely used for commercial purposes in industries, agriculture and service sector are called commercial sources of energy.

Question 59.
What are non – commercial sources of energy?
Answer:
It is commonly used by rural households for domestic consumption.

Question 60.
What is conventional source of energy ?
Answer:
Conventional sources of energy include both commercial and non – commercial sources of energy e.g., natural gas, coal, petroleum, etc.

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Question 61.
What is non – conventional sources of energy?
Answer:
These are basically renewable sources of energy. They have environment friendly characteristics and involves less cost of production, e.g., solar energy, wind energy, etc.

Question 62.
How are non – conventional source of energy better than conventional sources of energy?
Answer:
Non – conventional sources of energy do not pollute the environment.

Question 63.
What is Bio – energy ?
Answer:
Bio – energy is an energy generated by agricultural wastes, dried dung and other biological materials.

Question 64.
What is Bio – mass?
Answer:
Bio – mass is the production of fuel which is produced by converting agricultural wastes in pillets and briquette.

Question 65.
Why is more preference given to air and water sources in energy policy of India?
Answer:
Because they are not fossil fuels and it does not effect the environment negatively.

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Question 66.
What is health?
Answer:
Health means a state of complete physical, mental and social soundness.

Question 67.
What is the meaning of AYUSH?
Answer:
AYUSH means:
A – Ayurveda
Y – Yoga
U – Unani
S – Siddha
H – Homeopathy.

Question 68.
What is morbidity?
Answer:
Morbidity is a term used to describe how often a disease occurs in a specific area or is term used to describe a focus on death.

Question 69.
What is environment?
Answer:
Environment is defined as the total planetary inheritance and the totality of all resources.

Question 70.
What are renewable resources?
Answer:
The resources which may be regenerated through natural process such as forest, animals, water, etc.

Question 71.
What are non – renewable resources?
Answer:
The resources which are available to as a fixed stock, which cannot be regenerated such as coal, gas and petroleum.

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Question 72.
What is environmental crisis?
Answer:
Due to pollution in environment it creates an imbalance in the environment which is called as environmental crisis.

Question 73.
When was pollution control board formed?
Answer:
In 1974.

Question 74.
What is Pollution?
Answer:
It refers to those chemicals, substances which contaminate the environment.

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Question 75.
What is global warming?
Answer:
The gradual increase in the average temperature of the earth’s atmosphere, as a result the increase in greenhouse gases since industrial revolution.

Question 76.
What is ozone depletion?
Answer:
It referes to the phenomenon of reduction in the amount of ozone in the stratosphere.

Question 77.
What is the objective of Chipko movement?
Answer:
To save forests in Himalaya festival.

Question 78.
What is the major cause of air pollution?
Answer:
Smoke from vehicles.

Current Challenges Facing Indian Economy Short Answer Type Questions

Question 1.
What is meant by ‘Food for Work’ programme?
Answer:
‘Food for work programme’ is one of the programmes to generate wage employment for the poor unskilled people living in rural areas. Under this programme, wages is paid partly in kind in the form of foodgrains and partly in cash. The food component of wages ensures that poor workers get some minimum amount of food for their consumption requirement.

Question 2.
How can creation of income earning assets address the problem of poverty?
Answer:
Creation of earning assets will lead to increase in domestic product and per capita income. Increase in domestic product would spread to all sections of society and will trickle down to the poor sections of society also. Swamajayanti Gram Swarozgar Yojana aims at encouraging self – employment among the poor by providing income earning assets through a mix of loans and subsidies.

Question 3.
What programme has the government adopted to help the elderly people and poor and destitute women?
Answer:
The government has many of social security programme to help some specific groups. One such programme is National Social Assistance Programme. Under this programme elderly people who do not have anyone to take care of them are given pension to question themselves. Poor woman who are destitute and windows are also covered under this scheme.

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Question 4.
Is there any relationship between unemployment and poverty? Explain?
Answer:
There exists a deep relationship between unemployment and poverty. Unemployment or under employment and the casual and intermittent nature of work in both rural and urban areas drives unemployment people who do not have resources to make their ends meet into indebtedness and poverty.

Due to unemployment, income of the people is reduced to a large extent and they are unable to get access to education, health facilities, proper sanitation, etc. This causes poor quality of living and hence poor human capital and skills.

Question 5.
What is the difference between relative and absolute poverty?
Answer:
Absolute poverty is defined as inability to secure minimum human needs con¬cerning food, clothing, housing, education and health. On the other hand, relative poverty is a concept that enable us to understand the relative position of different regiments of the population in the social ladder.

Question 6.
Why do we observe regional difference in education attainment in India?
Answer:
The regional differences in educational attainment in India is due to:

Low expenditure by the government in education sector.
Inequality of Income.
Question 7.
Bring out the differences between Human capital and Human development?
Answer:
Following are the differences between human capital and human development:

  1. Human capital considers education and health as a means to increase labour productivity. On the other hand, human development considers education and health integral to human well – being.
  2. Human capital treats human beings as a means to an end; the end being the increase in productivity. Human development treats human beings as ends in themselves. In the context of human development basic education and basic health are the rights of every individual irrespective of their contribution to labour productivity.

Question 8.
How is human development a broader term as compound to human capital?
Answer:
Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well – being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices they value.

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Question 9.
Distinguish between Human capital and Physical capital?
Answer:
Difference between human capital and physical capital:

  1. Human capital and physical capital are both types of capital resources that are essential to the smooth running of any business. Human capital refers to the skills, abilities, experience and value that is brought on to a firm by its employees.

Physical capital refers to all non – human assets created by human and used in the production process such as machinery, buildings, vehicles, etc. An important point to note is that physical and human capital must go hand in hand for a business to run its business operations successfully.

  1. The right human capital can enhance the value of physical capital and without the right physical capital human capital cannot contribute to its full extent.

Question 10.
What is the role of human capital in economic development?
Answer:
Role of human capital formation in economic development:
The human capital formation plays crucial role in the economic development. Firstly, formation of human capital would tend to change the traditional society to modem society, which has higher scope for economic development.

Secondly, human capital increases the productivity of the physical capital (For example, they can handle the tools and machines in better way). Enhanced productivity would accelerate the growth.

Thirdly, higher standard of the life is possible only via development of human capital. Fourthly, human capital formation facilitates the use and growth of innovation. Innovation is the principle determinant of growth. Fifthly, human capital formation increases the rate of participation.

Higher the rate of participation, greater is the degree of economic equality in the society. Finally, investment in human capital yields larger returns and the returns on this type of investment far outweigh its input costs. For example, training of the workers increases their productivity which ultimately leads to overall increase in production.

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Question 11.
Education is considered to be an important input for the development of a nation? How?
Answer:
Education is the process of teaching, training, learning, impacting knowledge and develop skills. It facilitates the use of natural and human resources of all regions of the country. Following points are describing why education is an important input for the development of a nation:

  1. Knowledge and Skills:
    A better educated person has greater skills and knowledge which enhance productivity and therefore provide a greater opportunity to work and earn higher income.
  2. Rationality:
    Education develops logics in people and helps them in making rational choices which lead to efficient utilization of resources resulting in higher productivity.
  3. Values and Ethics:
    Education inculcates moral values and professional ethics in people making them law abiding citizens who help each other and hence contribute in the well – being of the nation.
  4. Adoption of Modern technology:
    Education develops the skills required for understanding and adoption modem technology. This helps in increasing output and growth of the nation.
  5. Reduction in Income inequality:
    Education enhances the income earning capacity of people from economically backward sections of the country and thus reduces the inequalities in the distribution of income.

Question 12.
Discuss the following as a source of human capital formation:

Health infrastructure
Expenditure on migration.
Answer:

  1. Health infrastructure:
    Investment in health facilities to build a physically as well as mentally strong human capital, is essential for increasing productivity. Preventive medicine (vaccination), curative medicine (medical intervention during illness), social medicine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of expenditures done on building health infrastructure which is considered as an important factor for human capital formation as it directly increases the supply of healthy labour force.
  2. Expenditure on Migration:
    People migrate in search of jobs with higher salaries than what they may get in their native places. People froms rural areas migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher earnings in such countries. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio – cultural set – up.

Question 13.
Establish the need for acquiring information relating to health and education expenditure for the effective utilization of human resources?
Answer:
The availability of courses and admissions related information helps the students to opt for the best course according to their interest areas and capabilities. This helps in efficient utilization of resources invested in education and results in productive human resources. The availability of information regarding health creates awareness about health in the people.

This increases the acceptability of various healthy habits and family welfare programmes which ensure the supply of a healthy workforce and a healthy society at large. Various health measures are not adopted due to lack of complete knowledge and information.

For example:
Few years back, people considered AIDS as a disease which could spread by shaking hands or sharing food and even people suffering from this disease were not aware of the medicines available but through awareness campaigns people are now informed about it and suffering of patients has reduced not only physically but also socially.

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Question 14.
How does investment in human capital contribute to growth?
Answer:
Investment in human capital is believed to be positively related to economic growth. The contribution of human capital formation to economic growth can be explained as follows:

  1. Increase in Labour productivity:
    Investment in human capital through expenditure on education, health, etc. enhances the productivity of labour as they become physically fit and skilled in their jobs. It leads to efficient utilization of the material inputs and capital.
  2. Innovations:
    Research and development is necessary for innovations in an economy, which lead to advancement in technology and creation of new products. Human capital formation helps in preparing learned scientists and researchers in various subjects who bring out innovative products, technologies and processes and thus add to the economic growth.
  3. Absorptive capacity:
    Advanced technology can be adopted only if the skills and knowledge required for using that technology is present in the country. Investment in education and on the job training helps to create these skills and knowledge base and thus helps in absorption of new technologies which lead to higher production and thus economic growth.

Question 15.
‘There is a downward trend in inequality world – wide with a rise in the average education levels’? Comments?
Answer:
It is believed that education level reduces the inequality at the global level. Education imparts the knowledge and technical skills which enhance the productivity of people. An educated person possesses higher productivity and efficiency and hence a relatively higher income earning capacity.

Distribution of income has become less skewed and income disparity between the rich and the poor is reducing across the world with better earning opportunities available due to rise in education.

Governments of different countries have been investing heavily in the education sector as rise in average education levels not only reduce inequality but also other problems like poverty, unemployment and underutilization of resources.

Question 16.
Explain the importance of Education?
Answer:
Importance/Objectives of Education:

Imparting an adequate knowledge of the subject – matter.
Equipping the prospective teachers with necessary pedagogic skills.
Enabling the teacher to acquire understanding of child psychology.
Developing proper attitudes towards teaching.
Developing self – confidence in the teachers.
Enabling teachers to make proper use of instructional facilities.
Enabling teachers to understand the significance of individual differences of child and to take appropriate steps for their optimum development.
Development of the ability to give direct satisfaction of parents from the achievement of children.
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Question 17.
Explain how investment in education stimulates economic growth?
Answer:
Investment in education stimulates economics growth in the following manner:

Investment in education stimulates economic growth as education is provided to all.
As per the government policies. They want to increase the literacy rate for both adults and youth.
It improves the difference in literacy rates between males and females.
Women are also taking higher educations.
This all lead to form a well educated nation and investment in education by all individuals give them in return a good standard of living a good labour productive force and high participation rate of both males and females. Which automatically stimulates the growth of economy.
Question 18.
Bring out the need for on – the – job – training for a person?
Answer:
Firms provide on – the – job training to their workers to enhance their skill which helps in human capital formation. The workers may be trained in the firm itself under the supervision of a skilled worker or the workers may be sent for off – campus training.

On – the – job training is an important factor of human capital formation as it results in enhanced labour productivity. On – the – job training allows trainees and employees to get acquainted with their co – workers.

Needs of On – the – job training:
Training allows the supervisors or managers to assess progress of a person over a short period of time enabling them to determine any flaws or problems and rectifying the problem on the spot. This leads to higher efficiency of not only the person under training but also the organization as a whole.

Question 19.
Trace the relationship between human capital and economic growth?
Answer:
Human capital is believed to be positively related to economic growth though it is difficult to establish a relation of cause and effect from the growth of human capital to economic growth. Human capital formation is related to economic growth in the following manner:

  1. Increase in Labour Productivity:
    Investment in human capital through expenditure on education, health, etc. Enhances the productivity of labour as they become physically fit and skilled in their jobs. It leads to efficient utilization of the material inputs and capital. With increase in productivity, output increases at an increasing rate and hence economic growth accelerates.
  2. Innovations:
    Research and development is necessary for innovations in an economy which lead to advancement in technology and creation of new products. Human capital formation helps in preparing learned scientists and researchers in various subjects who bring out innovative products, technologies and processes and thus add to the economic growth.
  3. Absorptive capacity:
    Advanced technology can be adopted only if the skills and knowledge required for using that technology is present in the country. Investment in education and on – the – job training helps to create these skills and knowledge base and thus helps in absorption of new technologies which lead to higher production and thus economic growth.
  4. Participation rate:
    Human capital formation makes a greater proportion of population capable of par acipating in the economic, social and political activities of a nation thus raising the participation of people in the process of economic growth.

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Question 20.
Discuss the need for promoting women’s education in India?
Answer:
Women have always been neglected when it comes to education in India. The access to education has always been biased towards male population due to our social system which is patriarchal. The lack of education has caused exploitation of women and has resulted in a lower social status of women in India.

There is an imminent need for promoting female education in India because of the following reasons:

Women education is essential for providing them economic independence and empowering them to save them from exploitation and domestic violence.
Women education is essential in order to raise the social status of women so that the quality of life of women can be improved.
Education women help in promoting family welfare programmes and thus in population control.
Educated women are aware of the importance of health care and thus take proper care of their family members contributing in human capital formation.
Educating a woman means educating a family. An educated woman can inculcate moral values in her children and can facilitate their education.
Question 21.
In your view, is it essential for the government to regulate the fee structure in education and health care institutions? If so, why?
Answer:
Education and health are two basic requirements of human beings so that they may be able to live a life of dignity. It is the responsibility of government to ensure education and health facilities to even the poorest of the poor.

For this purpose either the government should itself provide these services through government schools, colleges and hospitals or encourage private sector participation in these sectors. Private sector is allowed to operate in these sectors.

But private sector works with profit as the primary motive and so if government does not regulate the fee structure in education and health care institutions, the fee may become too high to be in affordable limits of common people. This will defeat the purpose of these facilities altogether and hence government must intervene and regulate the fee structure of even the private institutes in education and health care sectors.

Question 22.
Discuss the importance of credit in rural development?
Answer:
Following points highlight the importance of credit in rural development:

Credit is required by the farmers to meet their personal needs because the gestation period between crop sowing and realisation of income after production is quite long.
Credit is required by the farmers to make investment on seeds, fertilizers, implements, etc. Since majority of the farmers are poor, they do not have sufficient personal resources to make investment.
Credit is required by the non – farm sectors also such as cottage and small – scale industries.
Credit is required by the rural people for self – employment.
MP Board Solutions

Question 23.
Why is agricultural diversification essential for sustainable livelihoods?
Answer:
Agricultural diversification includes two aspects:

Diversification of crop production.
Shifting of workforce from agriculture to other allied activities and non – agriculture sector?
Agricultural diversification is essential because there is greater risk in depending exclusively on agriculture for livelihood. The diversification reduces the risk from agriculture sector and provides productive sustainable livelihood options to the people living in rural areas. It provides alternate employment opportunities in non – farm sectors which will reduce overcrowding of agriculture.

Question 24.
Briefly discuss the problems related to agricultural finance in India?
Answer:
Various factors that led to the related growth in economic development in China are as given below:

There is overall inadequacy of agricultural finance, particularly of the institutional credit. Agricultural finance is not available in sufficient quantity.
Loans are not available at the right time.
Loans are not available at reasonable rate of interest.
Despite the recent expansion of credit from commercial banks, its contribution to agricultural finance continues to be a small proportion of its total lending.
There has been neglect of small farmers who cannot offer any security for loans.
A serious problem is that of mounting overdues.
Question 25.
What is agricultural trading?
Answer:
Agricultural trading:
It means to exchange of agricultural commodities between farmer and traders. Agricultural trading includes gradation, standardization, collection and conservation. In India the undermentioned system is prevailed for the trading of agricultural commodities Trading in villages, Trading in mandies, Trading through co – operative societies, with government, the trading through retailers.

Question 26.
Mention some obstacles that hinder the mechanism of agricultural marketing?
Answer:
Some obstacles that hinder the mechanism of agricultural marketing are:

Faulty weighing and manipulation of accounts by traders results in exploitation of farmers when they sell their products to traders.
Farmers do not have proper storage facilities to keep back their produce for selling later at a better price. Hence, they are forced to sell even at lower price to save the products from decaying.
Fanners cannot avail agricultural credit, leading to their exploitation by the moneylenders.
MP Board Solutions

Question 27.
Write the problems of agricultural diversification?
Answer:
The major problems of agricultural diversification are as follows:

Farmers particularly small farmers are not able to invest in Agro and non – agro based industries. If requires more capital and labours. They are not having enough time to learn new economic agricultural policy and are unable to take risk.
Technological changes are the key of agricultural diversification. Available technological is not suitable for many agricultural related situations.
Infrastructure established by govt, is centralized in developed areas. In backward areas infrastructure like roads, transport, irrigation, cold storage are required but they are not available.
Question 28.
Explain Golden Revolution?
Answer:
Golden Revolution:
The rapid growth in the production of diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops is known as Golden Revolution. It led to increase in production of fruits, vegetables, flowers, aromatic plants, spices, etc.

Golden Revolution made India a world leader in the production of mangoes, bananas, coconut and spices. Golden Revolution provided nutrition and sustainable livelihood options.

Question 29.
Explain the role of non – farm employment in promoting rural diversification?
Answer:
A major proportion of the increasing labour force needs to find alternate employment opportunities in other non – farm sectors. The dynamic sub – sectors in non – farm sector include agro – processing industries, food processing industries, leather industry, tourism, etc. There are other sectors which have the potential but lack infrastructure and other support. These include traditional home – based industries like pottery, crafts, handlooms etc.

Majority of rural women find employment in agriculture while men generally look for non – farm employment. Nowadays women have also begun to work in non – farm jobs e.g., in Tamil Nadu, many Farm Women’s Groups are creating savings in their group through a micro – credit system and promoting small – scale household activities like mushroom cultivation, soap manufacture.

Question 30.
Information technology plays a very significant role in achieving sustainable development and food security? Comment?
Answer:
Information Technology (IT) is playing a significant role in achieving sustainable development and food security in present time. Governments can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce the chances of an emergency like monsoon failure and resultant drought or low crop yield.

Role of Information Technology (IT):

  1. IT can help in disseminating information regarding advanced technology and its applications, prices, weather and soil conditions for growing different crops etc. Which facilitates farmers in taking effective decisions regarding their crops and other activities. It also enhances productivity in farm and non-farm sectors of rural economy.
  2. IT can act as a means of releasing the creative potential and knowledge in the society and has the potential of employment generation in rural areas as kisan call centres and various websites providing valuable information regarding measures to sustainable development.

MP Board Solutions

Question 31.
What is organic farming and how does it promote sustainable development?
Answer:
Organic farming is an eco – friendly technique of growing crops which promotes sustainable development. In other words, organic agriculture is a whole system of farming that restores maintains and enhances the ecological balance and enhances the food safety. Thus, encouraging the practices towards sustainable development.

Question 32.
Compared to urban women, more rural women are found working. Why?
Answer:
The difference in participation rates is very large in urban areas:
For every 100 urban females, only about 14 are engaged in some economic activities. In rural areas, for every 100 rural women about 26 participate in the employment market. It is common to find that where men are able to earn high incomes, families discourage female members from taking up jobs. Earnings of urban male workers are generally higher than rural males and so the urban families do not want females to work.

Question 33.
Why are regular salaried employees more in urban areas than in rural areas?
Answer:
Regular salaried employees are more in urban areas than in rural areas due to following reasons:

  1. Education and Training:
    Regular salaried employment requires certain educational qualifications and professional skills. Education and training facilities are not as good in rural areas as in urban areas. Therefore, chances of regular employment are higher for urban People.
  2. Infrastructure:
    Large companies including MNCs are concentrated in the urban areas due to the presence of economic infrastructure and availability of modem facilities like banks, transport and communication, etc.
  3. Agriculture:
    Rural population is primarily engaged in agricultural sector and are not willing to take the risk of leaving their farms for regular salaried employment. This is also a reason for regular salaried employment to be less prevalent in rural areas.

MP Board Solutions

Question 34.
Why are less women found in regular salaried employment?
Answer:
Less women are found in regular salaried employment due to the following reasons:

  1. Lack of Education facilities:
    Female education is not given due importance in India and hence majority of the women in India do not have the educational qualification and professional skills required for regular salaried employment.
  2. Discouragement from Family:
    In India, families still do not want the female members to step out from the house for work especially if it is for long hours as in regular salaried employment.
  3. Family responsibilities:
    Household work and responsibility of children and other family members do not allow the women to devote time and energy in regular employment.

Question 35.
Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
Answer:
Yes, it is necessary to generate employment in the formal sector rather than in the informal sector because labour is exploited in the informal sector. In the formal sector, labour laws, enable the workers to protect their rights in various ways. The workers in the formal sector form trade unions, bargains with employers for better wages and other social security measures. They earn more than those in the informal sector.

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation.

MP Board Solutions

Question 36.
Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he unemployed? Why? What kind of jobs could persons like Victor be doing?
Answer:
Victor is a casual worker and is under – employed, though not completely unemployed. He is not being able to find a job according to his capabilities and willingness and therefore even after two hours of work in a day he remains jobless for the rest of the day. He can do other part – time jobs like those of delivery man, waiter in a restaurant, etc. Till he finds a regular wage employment suiting his education and skills.

Question 37.
You are residing in a village. If you are asked to advice the village panchayat, what kinds of activities would you suggest for the improvement of your village which would also generate employment?
Answer:
Following activities can be undertaken for the improvement of the village which would also generate employment:

Poverty alleviation programmes providing employment generation opportunities such as construction of roads, schools, etc.
Provision of services in areas such as primary health and primary education, which can employ educated youth of the village after training them.
Provision for safe drinking water and sanitation facilities by employing village population in construction of these facilities.
Providing assistance for people to buy income and employment generating assets.
Development of community assets by generating wage employment through construction of houses, financial assistance for constructing houses, laying of rural roads, etc.
Development of wastelands/degraded lands to improve agricultural production and farm incomes.
Question 38.
Who is a casual wage labourer?
Answer:
Casual workers refer to those workers, who do not earn regular wages and do not have regular employment throughout the year. They work for few months or days and earn wages for the work done. Casual workers are not hired by employers on a regular basis.

MP Board Solutions

Question 39.
How will you know whether a worker is working in the informal sector?
Answer:
Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self – employed who do not have any hired workers. All non – farm casual wage labourers who work for more than one employer such as construction workers and headdload workers are also working in informal sector.

Those who are working in the informal sector do not enjoy social security benefits. They earn less than those in the formal sector. Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers in the informal sector are dismissed without any compensation. Workers of this sector are even found living in slums.

Question 40.
Explain the term ‘Infrastructure’?
Answer:
Infrastructure refers to the supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce. These services include roads, railways, ports, airports, dams, power stations, oil and gas pipelines, telecommunication, schools and colleges, hospitals, sanitary system and also the monetarily system including banks, insurance and other financial institutions.

Question 41.
Infrastructure contributes to the economic development of a country. Do you agree? Explain?
Answer:
Infrastructure contributes to the economic development of a country in the following ways:

  1. Increasing Productivity:
    Social infrastructure such as housing, health and education makes living conditions better for the population. Healthy and educated population is a source of human capital formation which results in greater productivity.
  2. Boosting Production:
    Infrastructure boosts production both by increasing the productivity of the factors of production and by providing supportive facilities. Agricultural production depends largely on the adequate expansion and development of irrigation facilities and power-supply needed for the same.
  3. Inducing Investment:
    Economic infrastructure facilitates production and increases income in the economy. Business environment in the economy becomes conducive and this induces more investment which leads to employment generation leading to higher income and better standard of living.
  4. Quality of Life:
    Infrastructure facilities such as transport, communication and power-supply make life easier for people and increase their access to other related facilities such as education and health. This makes people more productive.

MP Board Solutions

Question 42.
What is the state of rural infrastructure in India?
Answer:
The state of rural infrastructure in India is very critical. India’s more than billion plus population resides in rural areas. There is a lack of access to safe, reliable power, water telecommunication, sanitation and transportation services. The government had announced several schemes but still there is not a very remarkable growth in it as per the data of census 2001 in rural India only 56% households have an electricity connection and 43% still use kerosene.

About 90% of the rural households use bio – fuels such as crop residues, dung and fuel wood to meet their energy requirement for cooking. Tap water availability is limited to only 24% rural households. About 76% of the population drinks water from open sources such as wells, tanks, ponds, lakes, rivers, canals, etc. Access to improved sanitation in rural areas was only 20%.

Question 43.
Justify that energy crisis can be overcome with the use of renewable sources of energy?
Answer:
The energy crisis in India is the result of excessive use of non – renewable sources of energy for present consumption which has created a threat for sustainable development of the country. The conventional sources of energy, especially the commercial sources are generally exhaustible (except hydro – power).

There are three sources of energy which are commonly termed as non – conventional sources-solar energy, wind energy and tidal power. India has almost unlimited potential for producing all three types of energy being a tropical country. Some appropriate cost effective technologies are already available which can be use to produce energy from these sources.

MP Board Solutions

Question 44.
What problems are being faced by the power sector in India?
Answer:
Some of the problems being faced by India’s power sector are:

  1. At present, India is able to add only 20000 MW a year India’s installed capacity to generate electricity is not sufficient to feed an annual economic growth of 9% and even, this capacity remains under – utilised due to inefficient operation of plants.
  2. State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed 500 billion due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies.
  3. Electricity is stolen in different areas and tariffs are not paid which also adds to the losses of SEBs.

Question 45.
What is a ‘Global Burden of Disease’?
Answer:
Global Burden of Disease (GBD) is an indicator used by experts to know the number of people dying prematurely due to a particular disease as well as the number of years spent by them in a state of ‘Disability’ owing to the disease.

Question 46.
What is the difference between sustainable development and economic development?
Answer:

Sustainable development easy stress on environment protection and pollution control while in economic development does not give importance to environmental protection and pollution control.
Natural capital is properly used in sustainable development while natural resources are exploited in economic development.
MP Board Solutions

Question 47.
What are the functions of the environment?
Answer:
Following are the functions of environment:

Offer resources for production: All the resources which are like as a free gift to us e.g., wind, water, sunlight, land are available because of environment.
Sustains life: All essential ingredients which we are receiving from environment are necessary for the sustenance of human life.
Assimilates waste: Environment absorbs the waste automatically which is produced by the production and consumption activities.
Quality of life: Water, mountains, deserts are enjoying by the human and adding quality to his life.
Question 48.
India has abundant natural resources substantiate the statement?
Answer:
India has abundant natural resources including rich quality soil, various rivers and tributaries, green forests, mineral deposits, vast stretch of the Indian Ocean, mountain ranges, etc.

  1. Soil:
    The black soil of the Deccan Plateau is ‘particularly suitable for cultivation of cotton, leading to concentration of textile industries in this region. The Indo – Gangetic plains spread from the Arabian Sea to the Bay of Bengal are highly fertile, intensively cultivated and densely populated regions in the world.
  2. Forests:
    India’s forests, though unevenly distributed, provide green cover for a majority of its population and natural cover for its wildlife.
  3. Minerals:
    Large deposits of iron – ore, coal and natural gas are found in the country. India alone accounts for nearly 20% of the world’s total iron-ore reserves. Bauxite, copper, chromate, diamonds, gold, lead, lignite, manganese, zinc, uranium, etc. are also available in different parts of the country.

MP Board Solutions

Question 49.
Is environmental crisis a recent phenomenon? If so, why?
Answer:
Yes, environmental crisis is a recent phenomenon. The environment has been able to perform its functions without any interruption till the resource extraction was not above the rate of regeneration of the resource and the wastes generated were within the assimilating capacity of the environment.

But today, environment fails to perform its third and vital function of life sustenance resulting in an environmental crisis. The rising population of the developing countries and the affluent consumption and production standards of the developed world have placed a huge stress on the environment in terms of its first two functions.

Question 50.
Give two instances of:

Overuse of environmental resources.
Misuse of environmental resources.
Answer:

  1. Overuse of environmental resources:

Soil degradation due to improper crop rotation and crop shifting.
Drying up of rivers due to overuse of water from them through dams and reservoirs.

  1. Misuse of environmental resources:

Excess use of electricity leads to depletion of resources like coal and water from which electricity is generated.
Excess use of petrol and diesel in vehicles.
Question 51.
State any four pressing environmental concerns of India. Correction for environmental damages involves opportunity costs. Explain?
Answer:
Four pressing environmental concerns of India are:

Land degradation.
Biodiversity loss.
Air pollution with special reference to vehicular pollution in urban cities.
Management of fresh water and solid waste management.
Correction for environment damages involves opportunity costs as explained below:

The industrial development in past has polluted and dried up rivers and other aquifers making water an economic good.
MP Board Solutions

Question 52.
Mention the strategies for sustainable development?
Answer:
The strategies are:

Use of non – conventional sources of energy.
Encouraging use of cleaner fuel.
Setting mini hydel plants.
Using traditional practices.
Biocomposting.
Biopest control.
Question 53.
Explain the relevance of intergenerational equity in the definition of sustainable development?
Answer:
Sustainable development in itself makes it obligatory for the development process to be such that the basic needs of not only the present generation but also of the future generations are taken care of. It becomes the moral duty of this generation to hand over the earth to the future generation in good form.

Sustainable development aims at maximizing the welfare of both present and future generations. It does not mean hindering the existing pace of economic growth, but refers to a judicious or optimum utilization of resources in such a manner that pace of economic growth sustains with inter generational equity.

Question 54.
Write a short note on National Rural Employment Guarantee Plan?
Answer:
This Act was passed in 2005 and the scheme i.e. National Rural Employment Guarantee Act (Scheme) or NREGA scheme was launched in 2nd February, 2006. The aim of the act is to provide guaranteed wage employment to every household whose adult volunteer is to do unskilled manual work for a minimum of 100 days in a year.

MP Board Solutions

Question 55.
Distinguish between Human capital and Physical capital?
Answer:
Role of human capital formation in economic development:
The human capital formation plays crucial role in the economic development. Firstly, formation of human capital would tend to change the traditional society to modem society, which has higher scope for economic development.

Secondly, human capital increases the productivity of the physical capital (For example, they can handle the tools and machines in better way). Enhanced productivity would accelerate the growth.

Thirdly, higher standard of the life is possible only via development of human capital. Fourthly, human capital formation facilitates the use and growth of innovation. Innovation is the principle determinant of growth. Fifthly, human capital formation increases the rate of participation.

Higher the rate of participation, greater is the degree of economic equality in the society. Finally, investment in human capital yields larger returns and the returns on this type of investment far outweigh its input costs. For example, training of the workers increases their productivity which ultimately leads to overall increase in production.

Question 56.
What are the problems of education sector?
Answer:
Problem/Challenges of Education sector:

Lack of infrastructure.
Poor global ranking of institutes.
System of education.
Gap between education provided and industry required education.
Gender issues.
Costly higher education.
Question 57.
What are the causes of migration in India?
Answer:
The causes of migration in India are as follows:

Lack of education facilities in rural area.
Poor condition of agriculture and good opportunities of employment due to industrialization.
Lack of medical facilities in rural area.
Lack of security.
Lack of facilities in rural area.
Social cause.
MP Board Solutions

Question 58.
What are the sources of rural credit?
Answer:
The sources for providing agricultural credit are divided into two parts:

(A) Institutional sources:

Co – operative Credit Societies
Bhoomi Vikas Bank,
Rural Bank (26 Sep., 1975)
Commercial Bank (July, 1969)
Government
State Bank of India
Reserve Bank of India (1 April, 1935), (h) National Agricultural and Rural Development Bank.
(B) Non – institutional sources:

Sahookar or Private money lenders.
Friends and relatives.
Trader and commission agent.
Question 59.
What are the problems of rural development?
Answer:
The rural areas are facing following problems today:

Inadequate employment opportunities
Low level of income.
Increasing pressure on agriculture.
Low standard of living.
Lack of means of transport and communication.
Lack of education facilities.
Lack of medical facilities.
Lack of civil amenities in urban areas like drinking water, electricity, gutters, library recreation, etc.
Lack of housing facilities.
Lack of fair price shops.
Lack of banking facilities.
MP Board Solutions

Question 60.
Explain the importance of agriculture in Indian economy?
Answer:
Agriculture and allied sectors, including agribusiness, domesticated animals, and ranger service and fishery sub segments as for as rate of GDP is 13 – 9 percent during 2013 – 2014 at 2004 – 2005 prices. Agricultural exports constitute a fifth of the total exports of the country. In perspective of the overwhelming position of the Agricultural sector, gathering and support of Agricultural Statistics expect incredible significance.

The 6% of agricultural production is converted in to processed food, which is focused to achieve 20% in coming future. The business is work escalated and contributes around 50% for industrial production. Multi – National Food Companies have assumed a part of making business sector draw and rivalry. Selection of inventive and experimental bundling strategies by food industry has empowered the assembling of sheltered and quality sustenance.

Conclusion:
India has the capacity to produce the food grains which can make vast difference in Indian economy. To achieve targeted mark by the government it needs to provide support in case of land, bank loans and other machineries to the small farmers along with the big farmers with this we can expect some improvement in Indian economy.

Agriculture is the most important sector of Indian economy. Indian agriculture sector accounts for 18 percent of India’s gross domestic product (GDP) and provides employment to 50 % of the countries workforce. India is the world’s largest producer of pulses, rice, wheat, spices and spice products. India has many areas to choose for business such as dairy, meat, poultry, fisheries and food grains etc.

India has emerged as the second largest producer of fruits and vegetables in the world. According to the data provided by Department of Economics and Statics (DES) the production of food grains for the year 2013 – 2014 is 264 million tons which is increased when compared to (2012 – 2013) 257 million tons. This is a good symptom for the Indian economy from the agriculture sector.

The commitment of agribusiness in the national income in India is all the more, subsequently, it is said that agriculture in India is a backbone for Indian economy. The contribution of agriculture in the initial two decades towards the total national output is between 48% and 60% In the year 2001 – 2002, this contribution declined to just around 26%.

Question 61.
Briefly explain in role of Minimum Support Price (MSP) in the context of agricultural marketing in India?
Answer:
The Government of India has adopted the policy of minimum support price to safeguard fanners from undue fluctuations in market prices of agricultural commodities. Under this policy, the government well in advance of the sowing season declares the minimum prices at which the government will purchase various commodities.

It means that the farmers have an option to sell their output to the government if the market prices fall below these minimum support prices. However, if the market prices are higher, the fears are free to sell in the market.

MP Board Solutions

Question 62.
By giving examples differentiate between self – employed workers and hired workers?
Answer:
Self – employed workers use self – employed resources to earn their living while hired workers are employed by others on salary. Example of self – employed workers are doctor running his own clinic, a cement shop owners /example of hired workers are a civil engineer in the construction company, a doctor working in a govt, hospital, etc.

Question 63.
Write the types of unemployment found in Indian economy?
Answer:
Types of Unemployment:

  1. Open Unemployment:
    Open unemployment is a situation wherein a large section of the labour force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labour force expands at a faster rate than the growth rate of economy. Therefore all people do not get jobs.
  2. Disguised Unemployment:
    It is a situation in which more people are doing work than actually required. Even if some are withdrawn, production does not suffer. In other words it refers to a situation of employment with surplus manpower in which some workers have zero marginal productivity.

So, their removal will not affect the volume of total production. Overcrowding in agriculture due to rapid growth of population and lack of alternative job opportunities may be cited as the main reasons for disguised unemployment in India.

  1. Seasonal Unemployment:
    It is unemployment that occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts, ice factories, etc., production activities take place only in some seasons. So, they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off – season.
  2. Cyclical Unemployment:
    It is caused by trade cycles at regular intervals. Generally capitalist economics are subject to trade cycles. The down swing in business activities results in unemployment. Cyclical unemployment is normally a shot – run phenomenon.

Question 64.
Explain disguised unemployment with example?
Answer:
Disguised Unemployment:
It is a situation in which more people are doing work than actually required. Even if some are withdrawn, production does not suffer. In other words it refers to a situation of employment with surplus manpower in which some workers have zero marginal productivity.

So, their removal will not affect the volume of total production. Overcrowding in agriculture due to rapid growth of population and lack of alternative job opportunities may be cited as the main reasons for disguised unemployment in India.

MP Board Solutions

Question 65.
Distinguish between regular workers and casual workers?
Answer:
Regular workers are hired on permanent basis, e.g., a doctor employed in a govt, hospital while casual workers are not hired on permanent basis e.g., a daily wage earn working in a construction site. Regular workers are entitled to social security benefits (pension, etc.) from their employers. Causal workers are not entitled to social security benefits from their employers.

Question 66.
Write the factors of economic infrastructure?
Answer:
The factors of economic infrastructure are:

  1. Energy:
    Energy is that power without which no human economic activity can be performed. Industrial development is not possible without energy. For running machines in agriculture energy is required.
  2. Transport:
    Transportation is the life blood of an economy. For lending raw materials to production place and for sending finished product to consumers transportation is essential.
  3. Communication:
    It means to send message or information from one place to another place or from one person to another person. Communication increases productivity and encourages investment.

Question 67.
Distinguish between Conventional sources and Non – conventional sources?
Answer:
Differences between Conventional sources and Non – conventional sources of energy:
MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy img 2

Question 68.
Distinguish between economic infrastructure and social infrastructure?
Answer:

  1. Economic Infrastructure:
    Economic infrastructure means those basic facilities and services which directly benefit the process of production and distribution of an economy. Irrigation, power, transport and communication are the examples of economic infrastructure.
  2. Social Infrastructure:
    Social infrastructure means those basic activities and services which, in addition to achieving certain social objectives, indirectly help various economic activities. For example, education does not directly affect economic activities like production and distribution but indirectly helps in the economic development of the country by producing scientists and engineers.

MP Board Solutions

Question 69.
Write three factors of social Infrastructure?
Answer:
The three factors of social Infrastructure are:

Education: Education helps in improving working ability and productivity. It changes the outlook of people and they adopt modem technology.
Health: Good health is a means of development. If people of a nation are unhealthy then no one will complete the work with interest.
Housing: Ideal housing facility improves the ability and productivity of people.
Question 70.
Differentiate between Commercial sources and Non – commercial sources of energy?
Answer:
Differentiate between Commercial sources and Non – commercial sources of energy:
MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy img 3

Question 71.
Write a short note on Global warming?
Answer:
Global warming is a gradual increase in the average temperature of the earth’s lower atmosphere as a result of increase in greenhouse gases since industrial revolution. The causes of global warming are :

Destruction of forests.
Use of fossil fuels.
Some of the effects of global warming are:

Melting of polar ice resulting in rise of sea level and floods.
Extinction of species.
Frequent tropical storms, etc.
Question 72.
What is ozone depletion?
Answer:
One of the problems created by the air pollution is ozone depletion. The presence of pollutants like, fluorocarbons and chlorofluorocarbons (CFC) in the depleted ozone in the atmosphere. This has created a hole in the ozone layer of the atmosphere. CFC chemicals are used in refrigerators and air conditioners as cooling agents.

The ozone layer protects life on earth by preventing harmful ultraviolet rays of the sun from entering the atmosphere. This layer has become too thin and has developed a hole exposing human life to the dangerous ultaviolet rays of sun. It is known that long exposure to ultraviolet rays of sun cause cancer and other genetic disorders in human beings.

MP Board Solutions

Question 73.
Explain poverty line?
Answer:
Poverty line:
It is that line which expresses per capita average monthly expenditure by which people can satisfy their minimum needs. Relative poverty and absolute poverty are the two variants of poverty.

Poverty line is fixed in India:

In the estimation of consumption cut off.
In private consumption expenditure.
Frequencies are recorded against each class – interval. Each frequency counts the number of heads belonging to a particular consumption class.
Question 74.
What is meant by sustainable development? State its features?
Answer:
Sustainable development may be defined as a development that meets the needs of the present generation without compromising with the ability of the future generation to meet their own needs.

  1. Sustainable development does not limit development. There should be a sustained rise in per capita income.
  2. No increase in pollution should be the objective of all economic activities. Sustainable development does not approve of those activities, which in order to maintain existing high standard of living, are detrimental to environment.
  3. Sustainable development ensures no reduction in the quality of life of future generations. It means that there is no reduction in the ability of future generations to meet their own needs.
  4. Sustainable development does not prevent the use of natural resources. Sustainable development simply requires that natural resources should be efficiently used.

Current Challenges Facing Indian Economy Long Answer Type Questions

Question 1.
The three dimensional attack on poverty adopted by the government has not succeeded in poverty alleviation in India? Comment?
Answer:
Poverty alleviation has always been accepted as one of the major objectives of planned development process in India but even after vast spending on poverty alleviation programmes, the government has not succeeded in poverty alleviation in India.

Despite various strategies to alleviate poverty, problems like hunger, malnourishment, illiteracy and lack of basic amenities are prevalent in India. None of the poverty alleviation strategies resulted in any radical change in the ownership of assets, process of production and improvement of basic amenities to the needy.

Due to unequal distribution of assets, the benefits from poverty alleviation programmes have not actually reached the poor. The amount of resources allocated for the poverty alleviation programmes is not sufficient when we take the magnitude of poverty into consideration.

The implementation of the poverty alleviation programmes is the responsibility of government and bank officials who are ill motivated, inadequately trained, corruption prone and vulnerable to pressure from local elites. The resources are thus used inefficiently.

Government policies have also failed to address the various issues related to poverty due to non -participation of local level institutions in programme implementation. It is evident that high growth. Alone is not sufficient to reduce poverty without the active participation of the people.

Further, it is necessary to identify poverty stricken areas and provide infrastructure such as schools, roads, power, telecom, IT services, training institutions, etc. Institutional weaknesses abound and implementation failure are the biggest reasons that these programmes not succeeded.

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Question 2.
Explain the problems of Human capital formation in India?
Answer:
Problems Facing Human Capital Formation in India:
There are several problems of formation of human capital in India. Firstly, rapid growth of population adversely affects the quality of human capital. It reduces per head availability of the natural resources. Secondly, migration of skilled persons to developed countries is a serious brain drain threat to the process of human capital formation in the country.

Thirdly, there is insufficient manpower planning by raising the standard of education at different stages. There is a need to maintain a balance between the demand and supply of technical labour force. Last but not the least, the insufficient supply of qualified and trained technologists is a pointer to a serious neglect of human capital formation in India. On – the – job training should be provided to working population to create a productive human capital formation.

Check the high rate of population growth.
Proper Manpower Planning:
A proper manpower planning is a critical requirement to combat the problem of human resources wastage.
The planning needs to focus on both the quantitative and qualitative aspects of human capital.
Proper educational planning:
An effective educational planning that promotes human capital formation must be developed.
It should provide for adequate health services and nutritive food to the existing population of the country.
MP Board Solutions

Question 3.
What are the measures to remove poverty in India?
Answer:
The measures to remove poverty in India are:

  1. Population Control:
    The high growth rate of population has depressed the increase in per capital income in India. As a result of it, in spite of increase in total output, the consumption level of common man has not increased and the number of poor people has been increasing. Hence, to eradicate poverty population control is essential in India. For this family planning programme has to be effectively implemented.
  2. Redistribution of Income:
    Inequality in the distribution of income and wealth makes the poverty perpetuate and permanent and also reduces the efficiency of the people in general. All efforts for development become futile if the already well – off sections are allowed to comer the additional income largely. In this situation, instead of coming down, the level of poverty may go up.

It is, therefore, essential to redistribute income in such a way that the income and consumption level of the poor class may increase. For this, we have to redirect the flow of income, wealth and resources from the rich people to the poor people. In this regard following measures may be adopted:

Creation of employment opportunities for the poor and fair wages to the workers.
To make available goods to the people of the poor class at reasonable prices through public distribution system.
Implementation of land reform measures.
Imposing taxes at higher rates on the rich and giving concessions in taxes on the goods used by the poor people.
Improving the conditions of the landless labourers and small farmers.
Raising the standard of living of the scheduled castes and scheduled tribes, etc.
Government has identified seven basic minimum services, which are to be provided to improve the living conditions of the poor.

  1. High Rate of Growth:
    Economic growth is the most important measure for poverty eradication. Economic growth creates more resources and has the potential of creating more space for the involvement of the poor. But the involvement of the poor depends on the sources of growth and the nature of the growth.

Therefore, it is important to source a large part of economic growth in agriculture, in rural non – agricultural activities and in production expansion of the informal sector which all have high employment elasticities. Besides this, an export strategy based on labour intensive exports may also be useful.

Here, we must note one more thing that a high growth rate is a necessary but not a sufficient condition for removal of poverty. It is possible that in spite of increase in production the consumption standard of the poor may not improve.

It may happen because of rapid rise in population or cornering the additional income by the well – off section of the society. Hence, along with the high rate of economic growth, we have also to adopt measures for population control and redistribution of income. In fact all these three measures are complementary to each – other.

  1. Development of Agriculture and Cottage and Small – scale Industries:
    A large chunk of poor people in India are in the agricultural sector. Therefore, we have to pay more attention on the development of agriculture. In this regard, measures should be adopted to improve the conditions of landless labourers and marginal farmers. Redistribution of land is also very important measure for the eradication of poverty in the rural sector.

Development of cottage and small – scale industries can play a very crucial role in providing employment to the poor sections of the society.

  1. Social Participation:
    Poverty can effectively be eradicated only when the poor start contributing to the growth by their active involvement in the growth process. Implementation of the programmes should be increasingly based on the approaches and methods which involve the poor themselves in the process of poverty eradication and economic growth.

This is, possible through the process of social mobilization, encouraging participatory approaches and institutions and empowerment of the poor. In this Panchayati Raj institutions, the voluntary organisations and community based self – help groups should be more closely involved.

MP Board Solutions

Question 4.
What do you mean by rural development? Bring out the key issues in rural development?
Answer:
Rural development means a comprehensive plan of action for the overall development of the rural areas.
Following are the key issues in rural development:

Development of human resources by providing more educational and health facilities and services in rural areas.
Land reforms.
Development of the local productive resources.
Development of infrastructure i. e development of irrigation, transport, electricity, credit facilites, etc.
More employment opportunities in the rural areas.
Question 5.
Discuss the importance of credit in rural development?
Answer:
Following points highlight the importance of credit in rural development:

Credit is required by the farmers to meet their personal needs because the gestation period between crop sowing and realisation of income after production is quite long.
Credit is required by the farmers to make investment on seeds, fertilizers, implements etc. Since majority of the farmers are poor, they do not have sufficient personal resources to make investment.
Credit is required by the non – farm sectors also such as cottage and smallscale industries.
Credit is required by the rural people for self – employment.
Question 6.
Explain the steps taken by the government in developing rural markets?
Answer:
Four major steps initiated by government to develop rural markets are as follows:

  1. Regulation of markets:
    The first step taken by the government was regulation of markets to create orderly and transparent marketing conditions. This policy benefited farmers as well as consumers. Under this market committee consists of farmer, government agents and traders regu-lated and monitored the sale and purchase of the market.
  2. Infrastructure facilities:
    Government is trying to ensure the provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units in the rural areas. This enables the farmers to bring their product to urban areas where they can earn huge profits. The existing infrastructure facilities are quite inadequate to meet the growing demand.
  3. Co – operative marketing:
    Government has initiated ‘co – operative marketing in an effort for relishing fair prices for farmers’ products. The milk co – operatives of Gujarat and some other states have been successful in transforming the social economic landscape of these states.
  4. Policy instruments:
    Government has initiated policy instruments like:

Assurance of Minimum Support Prices (MSP) for agricultural products
Maintenance of buffer stocks of wheat and rice by food corporation of India and
distribution of foodgrains and sugar through PDS. These instruments are aimed at protecting the income of the farmers and providing foodgrains at a subsidized rate to the poor.
Question 7.
Explain four measures taken by the government to improve agricultural marketing?
Answer:
Following are the measures taken by the government to improve agricultural marketing:

  1. Regulation of Market:
    The government has regulated the agricultural markets to create orderly and transparent transactions.
  2. Provision of Physical infrastructure:
    The government has provided physical infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units.
  3. Co – operatine Societies:
    The government has promoted co – operative marketing societies. The co – operative marketing has ensured fair prices to farmer for their products.
  4. Pricing Policy:
    The government has been following the policy of minimum support price for 24 agricultural products.

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Question 8.
Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification?
Answer:

(I) Importance of animal Husbandry:
In India, the mixed crop – livestock farming system with mainly cattle, goats and fowl is prevalent. Livestock production provides increased stability in income, food security transport, fuel and nutrition for the family.

  1. Today, livestock sector alone provides alternate livelihood options to a significant number of women and over 70 million small and marginal farmers including landless laboures.
  2. Milk production of the Indian dairy sector has increased by more than five times between 1960 – 2009 with the successful implementation of ‘Operation flood’. It is a system whereby all the farmers can pool their milk produced according to different grading (based on quality) and the same is processed and marketed to urban centres through co – operatives.

(II) Importance of Fisheries:
The water bodies consisting of sea, oceans, rivers, lakes, etc. are a source of living for the fishing community. Presently, fish production from inland sources contributes about 61% to the total fish production and the balance 39% comes from the marine sector (sea and oceans). Today, total fish production accounts for 0 – 7% of the total GDP.

This has become possible with progressive increase in budgetary allocations and introduction of new technologies in fisheries and aquaculture. Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products. Fishing has become a source of women empowerment.

(III) Importance of Horticulture:
Diverse horticultural corps such as:
Fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are grown in India. These crops play a vital role in providing food and nutrition, along with sustainable employment opportunities. India has emerged as a world leader in producing a variety of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices and is the second largest producer of fruits and vegetables.

Economic condition of farmers engaged in horticulture has improved. Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food processing are highly remunerative employment options for women in rural areas.

Question 9.
Identify the benefits and limitations of organic farming?
Answer:
Benefits of Organic Farming:

  1. Organic farming substitutes costlier agricultural inputs such as:
    HYV seeds, chemical fertilizers, pesticides, etc. with locally produced organic inputs which are cheaper and thereby generate better returns on investment for farmers.
  2. Organic farming generates income through exports as the global demand for organically grown crops is increasing.
  3. Organically grown food has more nutritional value than food grown through chemical farming thus creating a positive effect on health.
  4. Organic farming is appropriate for india as organic farming is more labour intensive than conventional farming.
  5. Organic farming promotes soil that are teaming with life and rich in micronutrients which can be used for decades to grow crops virtually year round in many parts of the world.

Limitations of Organic farming:

Organic farming is labour intensive. Thus, it is beneficial for small farmers who has abundant labour in his/her family.
Organic farming is very expensive, the farmer has to carry out the transition, modify the soil structure.
Organic produce is not traded in many markets, marketing is difficult.
Organic food prices are not stable and keep fluctuating time to time.
Organic farming requires a lot of time as it requires greater interaction between a farmer and his crop for observation.
Question 10.
What is organic farming and how does it promote sustainable development?
Answer:
Organic farming is a system of farming which uses locally produced organic inputs rather than the chemical fertilizers, pesticides, etc. Organic farming leads to sustainable development. Conventional agricultural farming relies heavily on chemical fertilisers and toxic pesticides which enter the food supply, penetrate the water sources, harm the livestock, deplete the soil and disturbs the natural ecosystems. Organic farming is eco – friendly and enhances the ecological balance. Thus, organic promotes sustainable development.

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Question 11.
How do infrastructure facilities boost production?
Answer:
Infrastructure facilities boost the production in the following ways:

Output of infrastructure sector such as power, water, etc. are used as inputs for production.
Transport moves men and materials from place to place for production and investment.
Power meet the requirements of economic activities such as lighting of factories and offices, driving of machines, etc.
Infrastructure is a component of the capital stock of a society. Cement, steel, etc. stimulates production activities.
Larger the infra – structure facilities the bigger the opportunities for producers to produce more and invest more.
Question 12.
State the significance of energy?
Answer:
The singnficance of energy may be listed as under:

  1. Energy is the base of the high living levels. There is a remarkable correlation between the per capita consumption of energy and the level of income.
  2. Energy is an essential prerequiste for improving the physical quality of life as life as also for the socio – economic development of the rural people of the country. Energy makes life easy and comfortable. It is useful for the spread of illteracy and also for the provision of health facilities, paricularly in rural areas.
  3. Energy plays an important role in the development of the country. Energy is an important input for industries and agriculture.

Question 13.
What do you mean by transmission and distribution losses? How can they reduced?
Answer:
Transmission and Distribution (T and D) losses refer to losses which occur at the time of transmission distribution of power to its consumers. Nation’s average loss is around 25% on this account.

Transmission and Distribution losses can be reduced by:

Having appropriate size of conductors.
Using proper load management.
Privatization of distribution work.
Introducing energy audits.
Checking theft of power.
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Question 14.
Discuss the reforms which have been initiated recently to meet energy crisis in India?
Answer:
The following reforms have been initiated by the government to meet he the energy crises:

  1. Privatization in Power generation:
    Power generation sector has been opened up for private sector and the government monopoly in the generation and distribution of electricity has been eliminated to gain competitive efficiency.
  2. Privatization in Power Transmission and Distribution:
    The Indian Government has approved private companies like Tata power and Reliance Energy along with Power- grid Corporation of India for constructing transmission networks and look after distribution of power supply in certain states.
  3. Regulatory mechanism:
    The Central Electricity Regulatory Commission (CERC) along with State Electricity Regulatory Commissions (SERCs) has been established in 19 states under the Electricity Regulatory Commissions Act, 1998 to regulate tariff, promote efficiency and competition.
  4. Rationalization of Tariff:
    Tariff rates have been revised upwards to discourage wasteful consumption of power and bring down the losses of SEBs.
  5. Encouraging FDI in Power sector:
    In order to meet the growing demand for electricity, India’s commercial energy supply needs to grow at about 7%. In order to achieve this target, the Ministry of Power aimed at attracting US s 250 billion of investment into the power sector. As domestic investment in power sector is not sufficient. FDI is being encouraged to supplement it.
  6. Accelerated Power Development and Reform Programme:
    (APDRP) APDRP was initiated in the year 2000 – 2001 with the objective of improving financial viability, reducing transmission and distribute losses and promoting transparency through computerization.

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Question 15.
What are the main characteristics of health of the people of our country?
Answer:
The health status of a country can be assessed through indicators such as infant mortality and maternal mortality rates, life expectancy and nutrition levels, along with the incidence of communicable and non – communicable diseases. Some of the health indicators in india are given in the table below:
MP Board Class 11th Economics Important Questions Unit 5 Current Challenges Facing Indian Economy img 4

Sources:
World Health Report 2005 and Economic Survey 2007 – 2008.
The following characteristics of health of the people of our country emerge from the above table:

Life expectancy at birth is only 67 years which is low in comparison to global standards.
Infant mortality as well as child mortality rates are still high in India though they have shown a declining trend in the past few years.
Around 50% of births in India still take place without the help of skilled attendants.
Question 16.
How can we increase the effectiveness of health care programmes?
Answer:
We can increase the effectiveness of health care programmes by following measures:

The government should increase its share of expenditure on health. Health requires huge investment.
Private sector should be assigned a role but it should be effectively regulated by the government.
More medical facilities should be mode available in rural areas.
There should be proper upkeep and maintenance of the government health care centres.
Sanitation level should be improved.
People must be educated to create awareness on health and hygiene.
Indian systems of medicine should be used to support public health.
Question 17.
How has women’s health become a matter of great concern?
Answer:
Women’s health has become a matter of great concern in India due to the following:

There are increasing cases of female foeticide.
The incidence of mortality is still high in case of women in India.
About 3 lakh girls under the age of fifteen become mothers every year.
Frequently bearing a child has caused anemia which contributes to 19% material deaths.
Abortions are a major cause of mortality in India.
Question 18.
Describe the meaning of public health. Discuss the major public measures undertaken by the state in recent years to control diseases?
Answer:
Public health refers to the health status of all the people of the country. Some measures undertaken by state in recent years to control diseases are:

Success in the long – term battle against diseases depends on education and efficient health infrastructure. It is, therefore, critical to create awareness on health and hygiene systems.
The role of telecom and IT sectors should be extended.
The effectiveness of health care programmes also rests on primary health care.
In order to provide basic health care to all, accessibility and affordability need to be intergrated in our basic health infrastructure.
MP Board Solutions

Question 19.
Give suggestions to improve Health level in India?
Answer:
The Suggestions to improving Health level in India are:

  1. Develop and implement national standards for examination by which doctors, nurses and pharmacists are able to practice and get employment.
  2. Rapidly develop and implement national accreditation of hospitals; those that do not comply would not get paid by insurance companies.
  3. Obtain proposals from private insurance companies and the government on ways to provide medical insurance coverage to the population at large and execute the strategy.
  4. Encourage business schools to develop executive training programmes in healthcare, which will effectively reduce the talent gap for leadership in this area.
  5. Revise the curriculum in medical, nursing, pharmacy and other schools that train healthcare professionals, so that they too are trained in the new paradigm.
  6. Develop partnerships between the public and private sectors that design newer ways to deliver healthcare. An example of this would include outpatient radiology and diagnostic testing centres.
  7. The government should appoint a commission which makes recommendations for the healthcare system and monitors its performance.

Question 20.
Throw light on causes of environmental crisis?
Answer:
The causes of environment crisis are:

  1. Pollution:
    Pollution of air, water and soil require millions of years to recoup. Industry and motor vehicle exhaust are the number one pollutants. Heavy metals, nitrates and plastic are toxins responsible for pollution.

While water pollution is caused by oil spill, acid rain, urban runoff; air pollution is caused by various gases and toxins released by industries and factories and combustion of fossil fuels; soil pollution is majorly caused by industrial waste that deprives soil from essential nutrients.

  1. Global Warming:
    Climate changes like global wanning is the result of human practices like emission of Greenhouse gases. Global wafming leads to rising temperatures of the oceans and the earth’s surface causing melting of polar ice caps, rise in sea levels and also unnatural patterns of precipitation such as flash floods, excessive snow or desertification.
  2. Overpopulation:
    The population of the planet is reaching unsustainable levels as it faces shortage of resources like water, fuel and food. Population explosion in less developed and developing countries is straining the already scarce resources.

Intensive agriculture practiced to produce food damages the environment through use of chemical fertilizer, pesticides and insecticides. Overpopulation is one of the crucial current environmental problem.

  1. Natural Resource Depletion:
    Natural resource depletion is another crucial current environmental problem. Fossil fuel consumption results in emission of Greenhouse gases, which is responsible for global warming and climate change. Globally, people are taking efforts to shift to renewable sources of energy like solar, wind, biogas and geothermal energy. The cost of installing the infrastructure and maintaining these sources has plummeted in the recent years.
  2. Waste Disposal:
    The over consumption of resources and creation of plastics are creating a global crisis of waste disposal. Developed countries are notorious for producing an excessive amount of waste or garbage and dumping their waste in the oceans and less developed countries.

Nuclear waste disposal has tremendous health hazards associated with it. Plastic, fast food, packaging and cheap electronic wastes threaten the well – being of humans. Waste disposal is one of urgent current environmental problem.

MP Board Solutions

Question 21.
Identify six factors contributing to land degradation in India?
Answer:
Land degradation means loss of fertility of land. Six of the factors responsible for land degradation are:

Loss of vegetation occurring due to deforestation
Unsustainable fuel wood and fodder extraction
Extraction of groundwater in excess of the recharge capacity,
Non – adoption of adequate soil conservation measures
Improper crop rotation,
Indiscriminate use of agro – chemicals such as fertilizers and pesticides.
Question 22.
Explain how the opportunity costs of negative environmental impact are high?
Answer:
Opportunity cost is the cost in terms of foregone opportunities of doing things. There has been a reversal of supply – demand relationship for environmental quality. We are no faced with increased demand for environmental resources and services but their supply is limited due to overuse resulting from rise in population, affluent consumption patterns and industrialization. Many resources have become extinct and the wastes generated are beyond the absorptive capacity of the environment.

This negative environmental impact has high opportunity costs as explained below:

  1. The industrial development is past has polluted and dried up rivers and other aquifers making water an economic good. Cleaning up of polluted rivers and replenishing water resources require huge investments.
  2. The intensive and extensive extraction of both renewable and non – renewable re – sources are exhausted.
  3. The health costs of degraded environmental quality are also present as decline in air and water quality have resulted in increases incidence of respiratory and water – borne diseases.
  4. Global environmental issues such as global warming and ozone depletion also contribute to increased financial commitments for the government.

Thus, it is clear that the opportunity costs of negative environmental impacts are high.

Question 23.
Explain the steps involved in attaining sustainable development in India?
Answer:
Steps involved in attaining sustainable development in India are outlined below:

  1. Population Control:
    Limiting the human population to a level within the carrying capacity of the environment is the first step to be followed for attaining sustainable development as population is exerting tremendous pressure in terms of demand for resources which is more than the absorptive capacity of the environment leading to environmental crisis.
  2. Efficient utilization Of Resources:
    Technological progress and industrialization should be input efficient and wastage of resources should be minimized by proper utilization. This will help to produce more with lesser amount of resources and thus, depletion of resources will be slower.
  3. Control of Over extraction:
    Rate of extraction of renewable resources should not be exceed the rate of regeneration so that they are extracted on a sustainable basis.
  4. Control of Depletion:
    Rate of depletion of non-renewable resource should not exceed the rate of creation of renewable substitutes so that environmental crisis does not emerge and resources, are available for the future generations.
  5. Pollution control:
    Pollution in all forms has a negative environmental impact which has high opportunity cost. Hence, control of pollution is a must to maintain the quality of natural resources such as air and water for sustainable development.
  6. Use of Non – conventional energy:
    India is hugely dependent on thermal and hydropower plants to meet its power needs which have adverse environmental impacts. Wind power and solar rays are cleaner and greener energy sources which should be explored on a large scale by developing technological devices along with non – conventional sources like, nuclear energy.

MP Board Solutions

Question 24.
Explain the supply – demand reversal of environmental resources?
Answer:
Before the advent of industrial revolution, the rate of resource extraction was less than the rate of regeneration of these resources. But with expanding population and its growing needs, the demand for resources for both production and consumption went beyond the rate of regeneration of the resources.

This has resulted in reversal of supply – demand relationship for environmental resources as now there in very high demand for environmental resources and services, but their supply is limited dure to oversue and misure.

Question 25.
Highlight any two serious adverse environmental consequences of development in India. India’s environmental problems pose a dichotomy: they are poverty induced and at the same time due to affluence in living standard: Is this true?
Answer:
Two serious adverse environmental consequences of development in India are as follows:

(I) Land Degradation:
Land in India has suffered degradation stemming mainly from unstable use and inappropriate management practices during the development process.

The factors responsible for land degradation are:

Loss of vegetation occurring due to deforestation.
Unsustainable fuel, wood and fodder extraction.
Extraction of groundwater in excess of the recharge capacity.
Non – adoption of adequate soil conservation measures.
Improper crop rotation.
Indiscriminate use of agro – chemical such as fertilizers and pesticides.
(II) Air and water pollution:
In India, air pollution is widespread in urban areas where vehicles are the major contributors and in a few other areas which have a high concentration of industries and thermal power plants. Water bodies are contaminated when pollutants are discharged from industries directly or indirectly into water bodies without adequate treatment to remove harmful compounds. Water contamination affects plants and organisms living in these bodies of water.

On one hand, population explosion and widespread poverty has lead to deforestation in India as the poor people in the rural areas are compelled to fell trees for earning their livelihood and for use as fuel, on the other hand, the growing demand for natural resources due to affluence in living standards in the urban areas is also equally responsible for the present environment degradation.

Question 26.
What are the causes of poverty?
Answer:
Following are the causes of poverty:

  1. Slow growth in agriculture sector:
    During the planning period, agriculture was not adequately strengthened due to inadequacy of irrigation, shortage of fertilizers, lack of infrastructural facilities such as transport power, etc. It could not generate enough employment opportunities.
  2. Population explosion:
    Rapid decline in death rate and slow decrease in birth rate caused rapid growth in population.
  3. Inappropriate educational system:
    Educational system is not employment oriented. Educational system is not vocational. Present educational system produces clerks and not the entrepreneurs who possess initiative, imagination and risk taking ability.
  4. Inequalities of income and asset ownership:
    Inequalities of income and asset ownership have contributed to the poverty. Rich persons have taken advantage of new opportunities. Most of the gains of development have accrued only to rich classes. Poor sections of the society could not take benefit of new opportunities and remained poor.

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Question 27.
List some of the poverty alleviation programmes in rural areas and explain them?
Answer:
Following are some of the poverty alleviation programmes in rural areas:

  1. Swarnajayanti Gram Swarojgar Yojana:
    Swamajayanti Gram Swarojgar Yojana is centrally sponsored scheme but executed by the district administration with the involvement of Panchayati Raj representatives. It aims at promoting micro – enterprises and helping the rural poor into self – help groups so that poor families may generate additional income on sustained basis.

Assistance is provided in the form of subsidy and bankcredit. More than five crore families have been given assistance. Total assistance amounted to around Rs. 40,000 crore. Average assistance comes out to be Rs. 7,500 – 8,000 per family.

  1. Sampoorna Grameen Rozgar Yojana (SGRY):
    It seeks to provide wage employment and food security to rural poof. The earlier schemes viz, Employment Assurance Scheme and Jawahar Gram Samriddhi Yojana have been fully integrated within this scheme from April, 2002.
  2. Pradhan Mantri Gramodaya Yojana (PMGY):
    PMGY focuses on village level development in health, primary education, drinking water, housing and rural roads. The objective of this scheme is to uplift the living standards of the rural poor. It comprises following schemes :

Pradhan Mantri Gram Sadak Yojana.
Pradhan Mantri Gram Awas Yojana.
Pradhan Mantri Rural Drinking Water Projects.
National Employment Guarantee Scheme (NEGS):
It seeks to provide at least 100 days of guaranteed employment to rural unskilled workers.
Antyodaya Anna Yoj ana (AAY): It was launched in December, 2000. This scheme provides highly subsidised foodgrains to the people living below the poverty line.
Question 28.
What factors contribute to human capital formation?
Answer:
There are various factors which contribute to human capital formation as discussed below:

  1. Education:
    An educated individual has more knowledge and skills than an uneducated person. Hence, education imparts the necessary attitude and aptitude, for adopting new technologies and efficient management practices which help in raising productivity, Education is an important factor in human capital formation which leads to higher efficiency and productivity in human beings and thus, higher income and standard of living which again facilitates further investment in education and health.
  2. Health:
    A sound mind in a sound body like education, investment in health is also considered as an important factor for human capital formation as it directly increases the supply of healthy labour force. A healthy person is an asset for the nation as he is more productive than a sick person who is unable to work efficiently due to bad health.

Therefore, investment in health facilities to build a physically as well as mentally strong human capital, is essential for increasing productivity.

  1. On the Job Training:
    Firms provide on – the – job training to their workers to enhance their skills which helps in human capital formation. The workers may be trained in the firm itself under the supervision of a skilled worker or the workers may be sent for off – campus training.

Expenditure regarding on the job training is an important factor of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than the cost involved.

  1. Migration:
    It contributes to human capital formation as it facilitates utilization of inactive skills of the people. People from rural areas migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher earnings in such countries.

Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio – cultural set – up.

  1. Information:
    Information relating to the labour market and other markets is also a factor which contributes to human capital formation. Information regarding the level of salaries in various types of jobs, whether the educational institutions provide the required skills and at what is the associated cost is necessary to make decisions regarding investments in human capital as well as for efficient utilization of the acquired human capital stock. Information is necessary to make decisions regarding investments in human capital.

MP Board Solutions

Question 29.
Explain benefits of Organic farming?
Answer:
Benefits of Organic Farming:

  1. Organic farming substitutes costlier agricultural inputs such as:
    HYV seeds, chemical fertilizers, pesticides, etc. with locally produced organic inputs which are cheaper and thereby generate better returns on investment for farmers.
  2. Organic farming generates income through exports as the global demand for organically grown crops is increasing.
  3. Organically grown food has more nutritional value than food grown through chemical farming thus creating a positive effect on health.
  4. Organic farming is appropriate for india as organic farming is more labour intensive than conventional farming.
  5. Organic farming promotes soil that are teaming with life and rich in micronutrients which can be used for decades to grow crops virtually year round in many parts of the world.

Limitations of Organic farming:

Organic farming is labour intensive. Thus, it is beneficial for small farmers who has abundant labour in his/her family.
Organic farming is very expensive, the farmer has to carry out the transition, modify the soil structure.
Organic produce is not traded in many markets, marketing is difficult.
Organic food prices are not stable and keep fluctuating time to time.
Organic farming requires a lot of time as it requires greater interaction between a farmer and his crop for observation.
Question 30.
Explain the role of co – operatives?
Answer:
Role of Co – operatives:
Cooperative is a voluntarily formed trading association which aims to provide mutual benefits to their members. Therefore, co – operatives voluntarily form association, where farmers sell their commodities mutually and earn the money.

Objectives of Co – operative:

Following are the objectives of the co – operatives:

To ensure timely and rapid flow of credit to the farmers.
To gradually eliminate the money lenders from the profile of credit agencies.
To spread credit facilities across all regions of the country.
To provide adequate credit support to areas covered by special programme of development.
Role of Trading Co – operatives:

The trading co – operatives play an important role in elimination of middlemen.
To get rid from the evils prevailed in the market.
Facilitate classification.
Provided standard scale measurement.
Storage facility.
Financial assistance, etc.
MP Board Solutions

Question 31.
Explain the problems of agricultural trading?
Answer:
It means to exchange of agricultural commodities between farmer and traders. Agricultural trading includes gradation, standardization, collection and conservation. In India the undermentioned system is prevailed for the trading of agricultural commodities: Trading in villages, Trading in mandies, Trading through co – operative societies, with government, the trading through retailers.

Problems of Agricultural Trading:

Large number of mediators
Malpractices in mandies
Increasing market expenditure
Lack of grading and standardization,
Lack of storing facility
Lack of transportation facility
No proper communication of price list.
Question 32.
What are the causes of unemployment in India?
Answer:
The following are the main causes of unemployment:

  1. Caste System:
    In India caste system is prevalent. The work is prohibited for specific castes in some areas. In many cases, the work is not given to the deserving candidates but given to the person belonging to a particular community. So, this gives rise to unemployment.
  2. Slow Economic Growth:
    Indian economy is underdeveloped and role of economic growth is very slow. This slow growth fails to provide enough unemployment opportunities to the increasing population.
  3. Increase in Population:
    Constant increase in population has been a big problem in India. It is one of the main causes of unemployment. The rate of unemployment is
    11 – 1% in 10th Plan.
  4. Agriculture is a Seasonal occupation:
    Agriculture is underdeveloped in India. It provides seasonal employment. Large part of population is dependent on agriculture. But agriculture being seasonal provides work for a few months. So, this gives rise to unemployment.
  5. Joint Family System:
    In big families having big business, many such persons will be available who do not do any work and depend on the joint income of the family. Many of them seem to be working but they do not add anything to production. So, they encourage disguised unemployment.

MP Board Solutions

Question 33.
Unemployment is a major economic and social problem? Explain?
Answer:
Unemployment is a major economic and social problem due to the following reasons:

  1. Loss of Human Resources:
    The problem of unemployment causes loss of human resources, labourers waste their maximum time in search of employment.
  2. Increase in Poverty:
    Unemployment deprives a man of all sources of income. As a result he grows poor. Therefore, unemployment generates poverty.
  3. Social Problems:
    Unemployment breeds many social problems comprising of dishonesty, gambling, bribery, theft, etc. As a result of unemployment social security is jeopardized.
  4. Political Instability:
    Unemployment gives birth to political instability in country. Unemployed persons can easily be enticed by antisocial elements. They lose all faith in democratic values and peaceful means. They consider that government is worthless which fails to provide them work.
  5. Exploitation of Labour:
    In the state of unemployment, labourers are exploited to the maximum possible extent. Those labourers who get work have to work under adverse condition of low wages. All this tells upon the efficiency of labourers greatly influence the pattern of employment opportunities in the country. Being poor, a person does not make any gainful use of existing resources.
  6. More Emphasis on Capital Intensive Techniques:
    In India, capital is scarce and labour is available in surplus quantity. Under these circumstances, the country should adopt labour intensive techniques of production. But it has been observed that not in industrial sector, also in agriculture sector; there is substantial increase of capital than labour.

In the case of Western countries, where capital is in abundant supply, use of automatic machines and other sophisticated equipments are justified while in our country’ abundant labour, results in large number of unemployment.

  1. Defective Education System:
    The education system in our country too has failed to respond to the existing intergeneration gap. It simply imparts general and literary education devoid of any practical content. India’s education policy merely produces clerks and lower cadre executives for the government and private concerns. The open door policy at the secondary and university level has increased manifold unemployment among the educated that are fit only for white collar jobs.

MP Board Solutions

Question 34.
Explain measures for removing unemployment.
Answer:
Following are the suggestions to solve unemployment problems:

  1. Change in industrial technique:
    Production technique should suit the needs and means of the country. It is essential that labour intensive technology should be encouraged in place of capital intensive technology.
  2. Policy regarding seasonal unemployment:
    Seasonal unemployment is found in agriculture sector and agro – based industries. To remove it:

Agriculture should have multiple cropping,
Plantations, horticulture, dairying and animal husbandry should be encouraged,
Cottage industries should be encouraged.

  1. Change in education system:
    Educational pattern should be completely changed. Students who have liking for higher studies should be admitted in colleges and universities. Emphasis should be given on vocational education. Qualified engineers should start their own small units.
  2. Expansion of employment exchanges:
    More employment exchanges should be opened. Information regarding employment opportunities should be given to people.
  3. More assistance to self – employed people:
    Most people in India are self – em – ployed. They are engaged in agriculture, trade, cottage and small-scale industries, etc. These persons should be helped financially, providing raw materials and technical training.
  4. Full and more productive employment:
    The main objective of country’s employment policy should be to increase employment opportunities and productivity of labour. Government should adopt a policy that provides employment to all people.

Question 35.
Explain the health facilities available in rural areas of India?
Answer:

  1. There is a lack of doctors to help those who need it. India has lack of doctors, there being only one doctor for every 2000 people within the country. This means that many people who require professional help are often unable to As a result, a lot of illnesses go unchecked and untreated and overtime worsen.

In a lot of cases, especially in villages and other remote areas, the lack of doctors results in citizens consulting unqualified practitioners who are unable to provide the help and aid their sick patient needs. At times, their advice can worsen the affected person’s condition and overall can be detrimental towards their health.

  1. Another cause of poor health includes poor sanitation. Lack of toilets and bath rooms in over 122 million households in the country lead to improper disposal of stools, which are often left in the open. This open air defecation leads to the spread of disease through parasitic and bacterial infections. These diseases are also quite harmful and will continue to spread without the addressing of poor sanitation. Need of good hygiene is quite urgent, as not only is it simple to implement, but can stop the spread and cause of numerous diseases.
  2. Lack of safe drinking water in India also accounts for their poor levels of health. Sources of water in India are often unsafe to drink, especially in areas of slums, with only 26% of the slum population having access to clean water. The problem is worsened by falling levels of ground water, insufficient maintenance of environment around water sources, excessive fluoride and arsenic in drinking water and groundwater pollution.

Having dangerous drinking water is a very large problem as every single living thing is dependent on it for survival. Fixing this issue, all over India would result in a very steep raise of health in India, as it would mean no one would be affected by unsafe drinking water.

  1. Another key contributor of poor health in India includes increased drug resistance of many diseases. Diseases such as dengue fever, hepatitis, tuberculosis, malaria and pneumonia continue to greatly affect the Indian population due to the diseases increased resistance to drugs. These diseases are both highly dangerous and very common in India and the fact that their resistance to medicine is increasing means they will only cause more devastation in the country.

MP Board Solutions

Question 36.
Give measures to protect environment?
Answer:
Suggestions for Environmental protection:
We all want to protect our planet, but we’re mostly too busy or too lazy to put up big change that would improve our lifestyle and save the environment. These are 7 simple habits to implement in your everyday life which will make a difference. There is nothing new here but if you follow atleast some of these tips, you can be proud of yourself participating in the protection of the environment.

  1. Use compact fluorescent light bulbs:
    It is true that these bulbs are more expensive, but they last much longer and they can save energy and in the long term your electricity bill would be reduced.
  2. Donate:
    You have tons of clothes or things you want to get rid of. If they are still usable, give them to someone who needs them. You may also choose to give them to associations. These associations may sell them and collect a little money. Not only will you protect the environment, but you will also contribute to a good cause.
  3. Turn off your devices:
    When you do not use a house device, turn it off. For example, if you don’t watch TV, turn it off. Turn off the light when you leave a room (even if you intend to return.) It’s an easy habit to take up which will help you save a lot of money.
  4. Walk or cycle:
    Driving is one of the biggest causes of pollution. If you want to use your car, ask yourself the following question: do I really need my car? Walk or use your bike if the journey is a short one.
  5. Detergent:
    Follow the recommended dose of detergent to wash your clothes or dishes.
  6. Leaky faucets:
    Watch leaky faucets, which can cause a significant increase in the water bill. An average of 120 litres of water can be wasted due to a dripping faucet.

MP Board Solutions

Question 37.
Describe the strategies for sustainable development?
Answer:
Strategies for Sustainable Development:
The conceptual meaning of sustainable development is not to create an obstacle in development process but this concept belongs to how we utilize our resources so that an inter – relationship can be established among present and future generation. To attained sustainable development, many probable strategies can be useful.

  1. Input Efficient Technology can be reducing the exploitation of resources. So, this technology may good for sustainable development. Via Using of Environmental friendly Sources of Energy, such as LPG and CNG which are eco – friendly fuel, we can reduce the greenhouse gases from the earth.

Delhi Transport Corporation’s initiative to CNG Buses in Delhi is the one of the best effort to reduce C02 and other harmful gases. Government should pay attention on Integrated Rural Development Programmes.

  1. Through this the burden and interdependency on cities for employment can be decreased to focus on.
  2. Renewable sources of energy like solar and wind for energy needs. It will be beneficial for the country like India, where is enough sun light, to convert Sunlight into solar Energy and Solar Energy in Electricity.
  3. It will create an atmosphere for green development. For attaining the sustainable development it is necessary for the government and society to control on the Tragedy of Commons.

MP Board Solutions

Question 38.
Explain the major issues related with environment?
Answer:

  1. The intensive and extensive extraction of both renewable and non – renewable resources has exhausted some of these vital resources and huge amount of funds need to be spent on technology and research to explore new resources.
  2. The health costs of degraded environmental quality are also present as decline in air and water quality have resulted in increased incidence of respiratory and water – borne diseases.
  3. Global environmental issues such as global warming and ozone depletion also contribute to increases financial commitments for the government.

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