ECONOMICS

Lesson 1-Development
Q1. Why different people have different developmental goals, what do you
understand by conflicting goals?
Ans.People have different developmental goals because different people have
different desires and aspirations. The life situations of one person differs from
another person.
At times persons or two groups may seek things which are conflicting.
1.For example, the construction of dam for producing electricity may be a
developmental goal for industrialists but for the construction of the dam, people
living nearby have to be displaced. This may not be a developmental goal for them.
2.For a girl, it might mean more gender equality or more freedom.
Q2. Besides income what are the non- material things that man needs to improve
the quality of his life.
Ans. Money cannot buy all the goods and services that one needs to live well
because.

(i) Money or material things that one can buy with it, is, one factor on which our
life depends. But the quality of life also depends on non-material things like equal
treatment freedom, security and respect of others.

(ii) Apart from money the infrastructure and facility like health and education is
required to live well. You can't buy all services and goods by money until the
facility arrangements are available at required time and place.

(iii) Money cannot buy a pollution-free environment, unadulterated medicines,

peace, harmony etc.

(iv) There are many public facilities such as schools, colleges, parks, hospitals, etc.
which an individual cannot afford. All these are to be provided by the government
or society for the common people.
Q3. Why total income is considered as an important attribute to compare countries
on the basis of their development?
Ans. For comparing countries their income is considered as one of the most
important attributes.
-countries with higher income are more developed than others with less income.
-This is based on the understanding that more income means more of all the things
that human beings need.
But total income is not a useful measure as countries have different population
levels, a country with a larger population might have higher income than another
country and it will not tell us what an average person is likely to earn.

Q4. What are the main criteria used by world bank in classifying different
countries and what are its limitations?
Ans. The main criterion used by the World Bank in classifying different countries
is the per capita income or average income of a person in a country. Limitations of
this criterion: It does not tell us about how this average income is distributed
among the people in the individual countries.
Although it is an important measure for classifying countries development still it
does not take into consideration health and education which is also an important
attribute.
Q5. What are the criteria used by UNDP for comparing countries? How it is
different from one used by world bank?
Ans.United Nations Development Programme has used the criteria of Human
Development Index to measure the development of the countries.HDI is calculated
on the basis of:
(a)Per Capita Income: when the total national income of the country is divided by
the population.
(b)Life expectancy: it measures the average age of a person in a country, it helps us
to know the health facilities of a country. (c)Literacy rates: education is also one of
the most important criteria for the development of a country. (d)Gross enrolment
ratio: it measures the education gained at three levels at the primary, secondary and
Higher education level.
The criteria used by UNDP is different from that of world bank as world bank
takes into account only the income level ignoring all other attributes which are
important for countries development.
Q6. How is the issue of sustainability important for development?
Ans. Sustainable economic development means that development should take
place without damaging the environment and exploitation of resources and
development in the present should not compromise with the needs of future
generation.
1. It is important for the future generation requirement: We must use non-
renewable sources judiciously. Dependency on non-renewable sources should
be reduced.
2. Proper utilization and reducing wastage of resource: It takes care of future
needs and may sustain the environment.
3. There is acute shortage or lack of some resources: Investing in alternative
sources of energy may prove helpful.
Q7. Mention any three characteristics of Development.
Ans. Characteristics of development:
1.What may be development for one may not be development for other.
2.For development people look at mix of goals.
3.Income is the most important component of the development but along with
income, people also seek for equal treatment, security, good health, peace and
security.
Q8 What is meant by economic development?

Ans. Economic development means that the rate of production must be faster than the
rate of increase in population.

In other words, we can say that it makes people better off by increasing their command
over goods and services and by increasing the choices open to them.
Economic development means the rate of production is greater than the rate of increase
in population and the rate of growth of GDP is high enough to fulfil the basic needs of
the population.

Q9. Consequences of environmental degradation do not respect state or national

boundaries. Support the statement with examples.
Ans. Consequences of environmental degradation do not respect national or state
boundaries, this issue is no longer a regional or national issue and our future is linked
together. Sustainability of development is essential for all mankind and it is our common
responsibility to save the environment. These days it is a matter of discussion among
different countries of the world. Global warming, acid rain, etc., are not to be controlled
by one nation. It is a global matter of thinking and finding the solutions.
Q10.Explain with reasons why Haryana has more per capita income but it lags behind
Kerala in literacy and health facilities.
Ans. Haryana is known for high agricultural growth but Kerala is known for human
resource development. Despite having higher average income than Kerala,
Haryana lags behind in health and education facilities. This is because: 1) Income,
alone is not an indicator of development.
2)over the past decade, health and education indicators have come to be widely used
along with income as a measure of development.
Q11.What is per capita income or average income?
Ans The average or per capita income is the total income of a country divided by its
population.
Total Income of a country
Per Capita Income=
T otal population of that country

Q12. Why do we use averages? Are there any limitations in their use?
Ans. Since countries have different populations, comparing total income will not tell us
what an average person likely to earn. It helps to compare the development of
countries as per capita income tells us whether people in one country are better off
than others in a different country.
Average income is a useful method of comparison but it has certain limitations:
(1) Average income does not tell us how the income is distributed among the people.
(2) An average is influenced by extreme values.
Thus, average hides disparities. Averages are affected by numeral values only. Other
factors such as living quality, education is not considered which are also important for
making comparison.
Q13.Find out present sources of energy used by people in India. What could be
possibilities fifty years from now?
Ans. There are two types of energy used by people in India. These are:
Conventional sources of energy: These sources which are known to us and which
are popularly
In use since a very long time. These are coal, petroleum, natural gas and electricity.
Non-conventional sources of energy: these are sources which have been discovered
only in recent past. These are solar energy, wind energy, biomass energy and geo
thermal energy.
There burden of existing resources such as coal. The coal supplies of country may
not last longer than 125 years and with current rate of production and consumption
of crude oil and natural gas, it is not beyond 25 years that we shall exhaust all are
stock.
In this situation it is necessary to find alternatives for the existing resources.
Q14: List a few examples of environmental degradation that you may have
observed around you.

Air pollution has increased due to the emission of smoke from factories and
vehicles.

There is an increase in water pollution due to shops and small factories in

residential areas.

There is noise pollution due to the use of loudspeakers at night and blowing of
horns unnecessarily on the roads by different vehicles.
 People throw garbage wherever they want. Perhaps there is no provision for
dustbins in the streets or roadsides.

Q15.State reasons for overuse of resources.

Ans. Reasons for overuse of resources:

(1) Over population (2) Lack of awareness (3) Excessive use of tube wells
and submersible pumps (4) Industrial needs.

Q16: What is the full form of HDI?

Ans: Human Development Index.

Q17: Which three efforts should be made by any country to improve its HDI?

Ans The three efforts which could be made by any country to improve its HDI are
as follows:

(1) providing 100 percent literacy

(2) Improving health facilities

(3) creating a pollution free environment.

Q18: distinguish between developed and developing countries.

Ans:

Developed Countries Developing Countries

More average income, higher per capita Low average income, less per capita
income and better standard of living income and not good standard of living

The standard of living in developed The standard of living in developing

countries is generally very high countries is normally not very high

People of the developed countries avail the Most of the people in developing
services of public facilities countries are deprived of facilities

Literacy rate is quite high due to better Literacy rate is quite low as people are
education system deprived of education facilities
Life expectancy rate is more due to better The standard of living in developing
standard of living countries is normally not very high