NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –9 Environment and Sustainable Development | EDUGROWN |

NCERT Most important question:

Q1. What do you mean by global warming? 

Ans: The gradual rise in the earth’s temperature caused by high quantities of carbon dioxide and other chemicals emitted in the atmosphere is known as global warming. It is an increase in global average temperature that is thought to be produced by the greenhouse effect. 

The natural greenhouse effect keeps the Earth’s temperature stable, allowing humans and many other lifeforms to exist. However, human activities have considerably increased the greenhouse effect since the Industrial Revolution, causing the Earth’s average temperature to rise by nearly 1°C. This is causing global warming. However there are various natural and man-made reasons behind the cause of global warming, such as deforestation, industrialisation, forest fires, increasing population, chlorofluorocarbons, etc.

Q2. Write some lines on ozone depletion. 

Ans: Depletion of the ozone layer is simply the wearing down (decrease) of the amount of ozone in the stratosphere. Unlike pollution, which has many different types and causes, Ozone depletion can be traced back to a single main human activity. 

Chlorofluorocarbons (CFCs) are used to make insulating foams, soaps, solvents and cooling products like air conditioners, refrigerators, and take-out containers. When CFCs reach the stratosphere, depletion begins. The sun’s ultraviolet light degrades these CFCs. Chlorine atoms are released as a result of the breaking up event. 

When chlorine atoms react with Ozone, a chemical cycle begins that destroys the beneficial ozone in that area. More than 100,000 ozone molecules can be broken apart by a single chlorine atom. The amount of UVB (Type-B ultra violet)that reaches the Earth’s surface increases as the ozone layer depletes. 

UVB induces non-melanoma skin cancer and plays a significant influence in the development of malignant melanoma, according to laboratory and epidemiological research.

Q3. What is Chipko Movement? How has India benefited from it? 

Ans: The Chipko movement was a nonviolent movement that started in 1973 with the purpose of conservation and protection of trees. However, it is mainly remembered for the mass mobilisation of women for the cause of forest preservation, which also resulted in a shift in attitudes and opinions about women’s status in the society. Hence, In Uttar Pradesh’s Chamoli district (now Uttarakhand), an uprising against tree felling and the preservation of ecological balance began in 1973 . 

The name ‘chipko’ originated from the phrase ‘embrace,’ since the locals clasped and encircled the trees to keep them from being chopped. 

Also the first Chipko andolan was founded in the 18th century by Rajasthan’s Bishnoi people. Sunderlal Bahuguna, a well-known environmentalist, founded it. Bahuguna is also credited with coining the Chipko proverb “ecology is perpetual economy.”

In 1980, one of the Chipko movement’s key achievements was a 15-year moratorium on tree cutting in Uttar Pradesh’s forests. The restriction was later extended to Himachal Pradesh, Karnataka, Rajasthan, Bihar, the Western Ghats, and the Vindhyas. All of this was done on the orders of the Indian Prime Minister, following widespread demonstrations by activists across the country.

Q4. What is a pollution control board? 

Ans: The Water (Prevention and Control of Pollution) Act of 1974 established the Central Pollution Control Board (CPCB). It was also given powers and functions under the Air (Prevention and Control of Pollution) Act of 1981. 

Its functions include:

  • Promoting the purity of streams and wells in various parts of the states through water pollution prevention, control, and abatement. 
  • They must monitor the improvement of air quality and work to avoid, control, or reduce air pollution in the country. 
  • They are expected to coordinate the work of the State Pollution Control Boards and handle disputes among them, 
  • To establish, alter, or repeal the requirements for stream or well in conjunction with the state governments concerned, 
  • To establish criteria for the quality of air. 
  • They coordinate the actions of the State Pollution Control Boards by providing technical help and guidance.

As a technical wing of the MoEF (Ministry of Environment, Forest and Climate Change), it is the country’s highest organization in the subject of pollution control. Meteorological data such as wind speed and direction, relative humidity (RH), and temperature were also monitored in conjunction with air quality. This information about ITO’s air quality is updated once a week. 

The CPCB, in partnership with the relevant SPCBs/PCCs, built a statewide network of water quality monitoring stations, with 1019 stations operating in 27 states and 6 union territories. The inland water quality monitoring network is organized into three levels: 

  • Global Environment Monitoring System (GEMS), 
  • Monitoring of Indian National Aquatic Resources System (MINARS), and 
  • Yamuna Action Plan (YAP).

Q5. Define Biocomposting. 

Ans: Bio-composting is a method of waste disposal in which organic waste decomposes organically in an oxygen-rich environment. Although all waste eventually decomposes, only certain waste materials are biodegradable and should be placed in compost bins. 

Compostable food waste includes banana peels, coffee grinds, and eggshells. Yard trash, such as grass clippings and leaves, can be added to compost bins in addition to food waste. As materials decompose, these items will aid in decomposition, and lessen odor. 

Perennial weeds, or plants that return year after year, should not be composted since they will regrow and spread. Composting these products helps to limit the amount of waste that is transferred to landfills and mass-burn incinerators. 

Composting not only reduces trash, but it also produces a valuable product. Instead of utilizing artificial fertilizers, the final compost, humus, is nutrient-rich and may be used to improve weak soils and nourish gardens. Compost also improves soil retention power, which can boost growing conditions.

Q6. What is air pollution? Write some measures to control it. 

Or 

India has an increasing rate of air pollution. What shall be done to check the same? 

Ans: Air pollution is the polluting of natural air by the presence of various pollutants such as toxic gases and chemicals. This form of contamination can be created by burning materials, gases emitted by cars, or hazardous fumes emitted as a byproduct of industry. 

According to experts, one of the most serious side effects of air pollution is global warming. Because of the high degree of industrialization, air pollution is a major concern throughout the world, particularly in large cities. The release of such air pollutants in high quantities, such as smog, particles, solid materials, and so on, is settling over the city, generating air pollution and posing health risks to the population. People generate a lot of unclean garbage on a daily basis, especially in big cities, which pollutes the entire atmospheric air to a large extent.

The following are some methods for reducing air pollution:

  • Industrial estates should be located away from residential areas.
  • Poisonous gases should be removed by running the vapors through a water tower scrubber or spray collector.
  • Attempts should be undertaken to produce pollution-free automotive fuels, such as alcohol, hydrogen, and battery power. Automobiles should have exhaust emission controls.
  • Growing plants that can metabolize nitrogen oxides and other gaseous pollutants, such as Vitis, Pimis, Juniperus, Quercus, Pyrus, Robinia pseudoacacia, Viburnum, Crataegus, Ribes, and Rhamnus.
  • Priority afforestation of the mining area.
  • Research and development of non-combustible energy sources, such as nuclear power, geothermal power, solar power, tidal power, wind power, and so on.
  • In nations such as India, traditional fuel sources such as wood, coal, and so on should be reconsidered in favor of newly developed smoke-free furnaces. Filtering, settling, dissolving, absorption, and other methods of mitigating air pollution are examples. 
  • Low-cost gadgets should be developed for these strategies.
  • Burning of leaves, plastic, trash etc, and burning of crackers should be avoided as much as possible.
  • Practicing recycling and reuse.

Q7. State some major environmental issues which the world is facing today? 

Or 

What are the biggest challenges the world is facing today in terms of the environment? 

Ans: Our surroundings are continuously changing, and there is no doubt about that. However, as our environment evolves, so does our need to become more aware of the issues that surround it. 

With a tremendous flood of natural disasters, warming and cooling phases, various forms of weather patterns, and much more, people must be aware of the environmental difficulties that our world is experiencing. Increasing food, water, energy, and infrastructural needs are pushing nature to its breaking point. And the effects of climate change can be seen everywhere we look.

The following are today’s most serious environmental issues:

  • Pollution: Pollution of the air, water, and soil takes millions of years to recover from. The most significant pollutants are those emitted by industry and motor vehicles. While oil spills, acid rain, and urban runoff create water pollution, different gases and pollutants generated by industry and factories, as well as the combustion of fossil fuels, cause air pollution.
  • Global Warming: Climate change, such as global warming, is caused by human activities such as greenhouse gas emissions. Global warming causes rising ocean and earth surface temperatures, resulting in the melting of polar ice caps, rising sea levels, and unusual precipitation patterns such as flash floods, heavy snow, and deserts.
  • Overpopulation: The planet’s population has reached unsustainable levels due to a lack of resources such as water, fuel, and food. Population growth in less developed and emerging countries is putting a burden on already scarce resources.
  • Urban Sprawl: The term “urban sprawl” refers to population migration from densely populated urban areas to low-density rural areas, resulting in the city invading more and more rural land. Land degradation, increased traffic, environmental challenges, and health concerns all come from urban sprawl.
  • Public Health Concerns: The existing environmental challenges endanger both human and animal health. Dirty water is the world’s greatest health danger, threatening both quality of life and public health. Toxins, pollutants, and disease-carrying organisms are carried by run-off into rivers.
  • Genetic Engineering: Genetic engineering refers to the use of biotechnology to modify food genetically. Food genetic manipulation causes an increase in poisons and diseases because genes from an allergic plant can transfer to the target plant. Because an altered gene may be hazardous to wildlife, genetically modified crops can cause major environmental problems. 

The desire for change in our daily lives and our government’s movements is growing. Although it is true that we cannot physically stop the weakening of our ozone layer. There are still a plethora of things we can do to make a dent in what we already know. We can contribute to a more ecologically conscious and compassionate community by raising awareness about these concerns in our local community and within our families.

Q8. Write a short note on sustainable development. 

Or 

How can nations today achieve sustainable development? 

Ans: Sustainable development is a method for people to utilise resources without running out of them. The Brundtland Commission described it as development with sustainability that “meets the requirements of the present without jeopardizing future generations’ ability to satisfy their own needs.” 

It is the idea of needs and the restrictions placed by technology and society on the ability of the environment to meet current and future requirements. Thus, the notion of sustainable development provides a framework for the integration of environmental policies and development plans with global, national, regional, and local ramifications. 

Natural systems that support life on Earth should not be jeopardized by development. As a result, the concept of sustainable development leads to new resource consumption techniques, which are as follows:

  • Excessive resource use must be conserved or reduced.
  • Material recycling and reuse.
  • Increasing the use of renewable resources such as solar energy over nonrenewable resources such as oil and coal.

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Sustainable development also entails addressing the basic requirements of all impoverished individuals on the planet and providing opportunity for all to realize their dreams for a better life. Otherwise, the globe would always be prone to ecological and other crises since poverty and unfairness are endemic. 

Individual ownership and governmental domains are not respected in ecological interactions. For example, the irrigation procedures, herbicides, and fertilizers employed on a farm have an impact on the productivity of neighboring farms, particularly small farms. Today’s progress must not jeopardize the development and environmental demands of future generations. 

To achieve sustainable development and meet the needs of the majority of people, poverty must be eradicated and inequities in living standards must be reduced all over the world. To protect the environment, nations must take preventative measures. When there are significant or irreversible environmental threats, scientific uncertainty should not be put to you in order to postpone cost-effective steps to prevent environmental damage or depletion. 

Environmental challenges are best addressed with the involvement of all concerned persons. Nations must make environmental information publicly available in order to facilitate and encourage public knowledge and engagement.

Today, all aspects of sustainability are at stake, including physical, economic, and social sustainability. Integration of many realms of knowledge such as disciplines, sectors, and institutions shows to be a necessary task in order to get sustainable results and well-supported development processes.

Q9. India has plenty of natural resources. How much do you agree with this statement? 

Or 

Comment on India’s natural resource availability. How much is India lucky? 

Ans: Yes, I agree with this assertion. Natural resources are broadly defined as all of the things provided by nature on, above, and beneath the earth’s surface. Land, water, forests, fisheries and animals, mineral ores, and energy sources such as coal, petroleum, gas, and uranium are all examples of natural resources.

India in terms of natural resources:

  1. Land Resources: India has over 10% of the world’s agricultural land. Despite being only the seventh largest country, India boasts the world’s most alluvial plains, the world’s largest deltas, and the world’s largest area of agricultural land by a wide margin.
  2. Forest Resources: India has a considerably smaller per capita forest (0.5 hectares) than the rest of the globe (1.9 hectares). According to the National Policy on Woods (1988), forests should encompass one-third (33%) of the country’s land area in order to maintain ecological equilibrium.
  3. Mineral Resources: Massive quantities of iron ore and a booming economy. India was a forerunner in the use of iron and several smelting technologies. It created the Crucible steel and Wootz steel, which became quite popular around the world. Iron and steel strength produced both formidable weapons and huge implements that aided the establishment of several empires in India.
  4. Textile production leadership: Since the Indus Valley Civilization 5000 years ago, India has possessed vast supplies of cotton and has been a pioneer in textile manufacture. India was the world’s greatest textile industry by the 18th century. This is one of the primary factors that drew Europeans in. Later, the English took control, automated, and ushered in the industrial revolution.
  5. The availability of a large workforce: India has always had a vast workforce. This was beneficial to anyone establishing a large army or an army of employees. Europeans employed Indian labor to fight their battles and to develop their other colonies.
  6. Extensive shoreline: India’s long coastline in the center was unrivaled by other civilizations, allowing India to connect to innovations coming from both the east and the west. It was via trade that they were able to export their beliefs and rituals to the rest of the world.
  7. Water Resources: Rainwater, seawater, ground and surface water are the primary sources of water. Water quality standards must be enforced in order to specify the acceptability of water for drinking, agriculture, industry, public health, and environmental safety.
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –8 nfrastructure| EDUGROWN |

NCERT Most important question :

Q1. Why are fluorescent lamps and LED bulbs getting promoted nowadays? 

Ans: The light-emitting diode (LED) is emerging as the most energy-efficient lighting source. To provide the same amount of light, an LED bulb requires one-tenth the energy of a standard incandescent bulb and half the energy of a Compact Fluorescent Lamp (CFL). LED lighting is up to 70-90% more efficient than traditional lighting such as fluorescent and incandescent bulbs. Also it has life for almost 12 years longer than incandescent bulbs. Only 5% of the energy in LEDs is wasted as heat, hence reduced energy use reduces demand from power plants and minimizes greenhouse gas emissions. Upgrading to fluorescent, LED, or halogen light bulbs can help us save money on our electricity bill while also saving our time and energy by reducing the frequency with which we change them. 

Q2. Write a few lines about power distribution supply in the national capital of India. 

Ans: The Delhi Vidyut Board was established in 1997 by the Government of NCT Delhi with the purpose of generating and distributing electricity throughout the NCT of Delhi, with an exception of territories under the jurisdiction of the NDMC and the Delhi Cantonment Board. On July 1, 2002, he Delhi Vidyut Board (DVB) was divided into six successor corporations: 

  • The Delhi Power Supply Company Limited (DPCL) is the holding company; 
  • The Delhi Transco Limited (DTL) is the TRANSCO; 
  • The Indraprastha Power Generation Company Limited (IPGCL) is the GENCO; 
  • The BSES Rajdhani Power Limited (BRPL) is the DISCOM; and 
  • The North Delhi Power Limited (NDPL) is the DISCOM. 

According to extant documents, the first diesel power station was created in Delhi in 1905 when a private English company called M/s. John Fleming was granted authorization to generate electricity under the rules of the Indian Electricity Act 1903. Also government plants are the major source of power for Delhi, and any increase in cost generation is passed on to Discoms (allowed (allowed by CERC / DERC).

Q3. What is morbidity? 

Ans: Morbidity is defined as a departure from a state of physical or psychological well-being caused by disease, illness, injury, or sickness, particularly when the affected individual is conscious of his or her condition. 

Morbidity, according to the World Health Organization (WHO), may be quantified in terms of the number of people who were ill, the illnesses they encountered, and the length of time they were ill. 

Chronic diseases, such as rheumatoid arthritis, are normally not lethal, but they can cause significant morbidity in individuals, resulting in a reduced quality of life. 

Ill patients are assigned morbidity scores or anticipated morbidity using methods such as the APACHE II, SAPS II and III, Glasgow Coma scale, PIM2, and SOFA. Data is gathered based on disease type, gender, age, and location. 

Hence, morbidity can be said to be the prevalence of illness in a population.

Q4. What is the reason that state electricity boards suffer losses in India? 

Ans: Despite substantial electricity growth over the previous 60 years, India continues to experience persistent power shortages. 

The main causes of power shortages are, 

  • Rising demand that is not being met by rising output; 
  • Reliance on monsoon for hydel power; 
  • Delays in commissioning of additional capacity in coal in thermal and nuclear facilities; 
  • Non-availability of coal; 
  • Difficulties with new power plants; 

Reasons

  • Wrong pricing of power.
  • Also, the losses incurred by the state power board are the result of transmission inefficiencies, including theft. 
  • The agricultural industry is responsible for a significant portion of theft. 
  • The SEBs(State Electricity Board), according to popular belief, are inefficient and poorly administered. 
  • Furthermore, for political reasons, they provide massive subsidies to the agriculture industry and hence are not financially viable. 

According to this assessment of the issues, removing the agriculture sector should allow the SEBs to restore a significant amount of financial health. 

The SEBs’ financial difficulties can be attributed to three factors:

  • T&D losses, especially commercial losses from power, are quickly increasing while revenue is not. As a result, the economics of power generation is utterly skewed.
  • Pattern of investment in generating is unsuitable, resulting in a rapid increase in the cost per unit of power. 
  • The high cost of power imposed on the industry, the mainstay of the SEBs, which is now abandoning the grid in favor of the captive route, is aggravating the SEBs’ dilemma. 

Q5. What are the indicators of the health status of a country? 

Ans: Health indicators are measurable characteristics of a population that scientists use to assist their explanations of the health status of the country. Typically, researchers will utilize a survey methodology to collect information on specific people, then use statistics to try to generalize the information acquired to the entire population, and then using the statistical analysis, make a statement on the population’s health. Governments frequently utilize health indicators to form healthcare policy. 

Some of the indicators are:

  • Life Expectancy is the most common example. .
  • Other examples are 
    • Infant Mortality Rate, 
    • Maternal Mortality Rate, 
    • Hiv Prevalence, 
    • Mortality Due To Diseases (Malaria, Tuberculosis Etc), 
    • Fertility Rates Etc.

Global health indicators are classified as either directly measuring health phenomena (e.g., diseases, deaths, and service utilization) or indirectly measuring health phenomena (e.g., social development, education, and poverty indicators), these are known as proximal and distal indicators respectively. 

Based on demographic statistics reflecting levels of education acquired as well as access to adequate water and sanitation, a country can be classified as having a population with a high, medium, or low illness burden.

Q6. A study estimates that medical costs alone push down 2.2 per cent of the population below the poverty line each year. How? 

or 

Rising healthcare is pushing the Indian population towards the poverty line. Comment. 

Ans: The number of world-class hospitals and highly qualified medical workers in India has increased, and the country’s emergence as a favoured destination for medical tourism has been the subject of great excitement and acclaim. However, the less-than-optimistic side of the story is that healthcare services continue to be out of reach for millions of Indians in terms of both access and pricing. In terms of hospital-bed density, physician-to-population ratio, number of doctors graduating each year, and per capita public expenditure on healthcare, India ranks low in comparison to other developing countries.

The following points depicts how medical expenses pushed people down the poverty line:

  • The rising expense of diagnosis, drugs, and hospitalization is forcing millions of Indians into poverty, according to a World Health Organization official (WHO).
  • The majority of Indians spend over 70% of their income on drugs and healthcare, compared to 30-40% in other Asian nations such as Sri Lanka. 
  • According to a survey conducted in six Indian states by the Indian Institute of Population Sciences and WHO, more than 40% of low-income households in India must borrow money from outside the family to fulfill their healthcare bills.
  • According to the survey, this tendency has driven 16% of households below the poverty line. Despite the rising investment, experts say the issue of low-quality healthcare goes unaddressed. 
  • The country’s public hospitals have grievance redressal committees in place, but few individuals are aware of how to approach the MCI.
  • Between 8 and 9 percent of all households in urban and rural areas reported taking out loans to cover medical expenses. 
  • In the event of a medical emergency, the consequences for financially challenged households might be devastating. 
  • Preventive medicine is almost non-existent among the poor, and illnesses are only treated when they reach a critical stage. As a result, there is a double risk: loss of income during illness as well as significant medical costs. 
  • The majority of bottom-of-the-pyramid households (40 percent) experienced income loss due to illness. Almost 22% of Metro’s financially disadvantaged households reported a negative surplus income. 
  • The share of such households in Developed Rural is 33%. As a result, for such homes, which already spend more than they make on basic necessities, a medical emergency might tip them over the edge.
  • It comes as no surprise, then, that over 60% of households save primarily to be able to deal with medical emergencies. Healthcare-related savings were identified as a top priority by over 60% of households in underdeveloped rural areas and 50% of households in metro cities.

Q7. What are the six systems of Indian medicine? Explain. 

Ans: Systems medicine is an interdisciplinary field of study that examines the human body’s system as a whole, including biochemical, physiological, and environmental connections. 

The Ministry of Ayurveda, Yoga, and Naturopathy, Unani, Siddha, and Homoeopathy, abbreviated as AYUSH, is an Indian governmental entity charged with the development, education, and research of Ayurveda (Indian traditional medicine), Yoga, Naturopathy, Unani, Siddha, Homeopathy, Sowa Rigpa (Traditional Tibetan medicine), and other Indigenous medical systems are all examples of complementary medicine. 

The Department of Indian Systems of Medicine and Homoeopathy was established in March 1995. (ISM&H). It is administered by the Ministry of Health and Family Welfare. In March 2003, AYUSH was given its current name. The Ministry of AYUSH was established on November 9, 2014, with the elevation of the Department of AYUSH. They are also referred to as AYUSH.

There are six major systems of Indian medicine, which are as follows:

  1. Ayurvedic medicine: Ayurvedic ideology strives to maintain structural and functional elements in a functional condition of equilibrium, which denotes good health. 

Any imbalance caused by internal or environmental factors creates disease, and restoring balance by various techniques, procedures, routines, nutrition, and medicine constitutes treatment. Ayurvedic philosophy is founded on the Pancha bhootas (five element theory) notion, which all items and living bodies are made out of. 

  1. Siddha: The Siddha system of medicine emphasizes that medical therapy must consider the patient, surroundings, age, habits, and physical condition in addition to the disease. Siddha literature is written in Tamil and is widely practiced in Tamil-speaking India and beyond.
  2. Unani: The Unani System of medicine is based on established knowledge and practices relating to the promotion of good health and disease prevention. Although the Unani system originated in Greece and spread to many nations, Arabs improved it with their knowledge and experience, and the system was carried to India throughout the Middle Ages. 

The Unani system emphasizes the use of naturally occurring, primarily botanical medicines, however, it does employ animal and marine substances. 

  1. Homeopathy: Homeopathy is a medical system that believes in a specific way of curing ailments through the administration of potent medications that have been experimentally proven to have the ability to produce similar artificial systems on humans. 
  2. Yoga: Yoga is a way of life that has the ability to promote social and personal behavior, physical health by stimulating better circulation of oxygenated blood in the body, restraining sense organs, and so generating mental peace and tranquility. 
  3. Naturopathy: Naturopathy is also a way of life, with drug-free disease treatment. The system is based on the old practice of applying simple natural laws. Naturopaths emphasize healthy eating and living habits, the use of purifying procedures, and the use of hydrotherapy, baths, and massage, among other things.

Q8. What is the consumption pattern of conventional energy sources in India? 

Ans: Energy is widely acknowledged to be one of the most significant inputs for economic progress and human development. 

Economic development and energy use have a significant two-way link. On the one hand, the availability of cost-effective and environmentally friendly energy sources is critical to an economy’s growth and worldwide competitiveness. The level of economic development, on the other hand, has been seen to be reliant on energy demand. 

India is the Non-OECD East Asia’s second-largest commercial energy consumer, accounting for 19% of the region’s overall primary energy consumption. India’s economic progress has been largely attributed to increased energy usage. While commercial energy sources meet 60% of overall energy needs in India, the remaining 40% is met by non-conventional fuels. Climate change has emerged as one of the primary concerns influencing energy policy in recent years. 

More than 150 nations, including India, have committed to developing and implementing climate change mitigation and adaptation measures under the United Nations Framework Convention on Climate Change. India is responsible for more than 3.5 % of global carbon emissions. Because energy use is a major source of emissions, it is critical to focus on energy demand and supply management as a strategy for mitigating emissions. 

While energy demand rises in tandem with economic expansion, this relationship shifts throughout time, depending on a variety of factors. Technological advancement, energy efficiency programs, and structural changes all contribute to variations in energy consumption. Understanding the many components of energy consumption is thus critical for dealing with future emissions. 

Economic growth and structural change are the primary drivers of India’s positive growth in energy intensity. The structural component is primarily influenced by income and forces unrelated to energy or energy legislation. Because it is impossible to directly limit energy demand that rises from increased output or activity, emphasis should be placed on conservation measures at the outset of development. Housing, commercial structures, industrial, and transportation policy must incorporate energy efficiency at the local, regional, and national levels. 

Q9. How can energy sources be overcome with the use of renewable sources of energy? 

or 

Justify that the energy crisis can be overcome with the use of renewable sources of energy. 

Ans: Renewable energy comes in a variety of forms. The majority of these renewable energies rely on sunlight in some way. 

  • Wind and hydropower are direct results of differential heating of the Earth’s surface, which causes air to flow around (wind) and precipitation to form when the air temperature rises.
  • Solar energy is the direct conversion of sunlight into electricity via panels or collectors. 
  • Biomass energy is the stored sunlight in plants. 
  • Other non-solar renewable energies include geothermal energy, which is produced by radioactive decay in the crust paired with the original heat of the Earth’s formation, and tidal energy, which is a conversion of gravitational energy. 

The Indian energy crisis is the outcome of the country’s heavy usage of nonrenewable energy sources for current consumption, which has posed a threat to the country’s long-term development. 

The conventional energy sources, particularly the commercial sources, are generally depleted (except hydropower). As a tropical country, India has nearly endless potential for producing all three sources of energy. There are already some acceptable cost-effective technologies available that can be used to generate energy from these sources. 

Research should be conducted to develop even cheaper technologies that would make the production of renewable energy viable and useful. This will solve the problem of depleting all energy sources while also preserving resources for future generations.

There are several options for restoring renewable energy. It is demonstrated in the following points:

  1. Solar Energy: This type of energy is based on the nuclear fusion power of the Sun’s core. This energy can be captured and converted in a variety of ways. From solar water heating with solar collectors or attic cooling with solar attic fans for residential use to the complicated technologies of direct conversion of sunlight to electrical energy utilizing mirrors and boilers or photovoltaic cells, there is something for everyone. 
  2. Wind Power: The movement of the atmosphere is caused by temperature changes at the Earth’s surface as a result of the different temperatures of the Earth’s surface when lit by sunlight. Wind energy can be utilized to pump water or create power, however, producing considerable amounts of energy needs wide geographical coverage.
  3. Hydroelectric energy: This form takes advantage of the gravitational potential of raised water lifted from the oceans by sunlight. It is not strictly renewable because all reservoirs ultimately fill up and require costly excavation to be used again.
  4. Biomass: It is a phrase for plant-based energy. This type of energy is widely used all around the world. Unfortunately, the most common is the use of firewood for cooking and heating. This process emits a large amount of carbon dioxide gas into the atmosphere and is a major contributor to poor air quality in many regions. 
  5. Hydrogen and fuel cells: These are not precisely renewable energy resources, but they are abundant and emit very little pollution when used. Hydrogen can be consumed as fuel, generally in a car, with the combustion product being just water. 
  6. Geothermal power: The heat energy emitted from the planet slowly oozes out everywhere, and this is further stimulated by the heat from radioactive decays. In some regions, the geothermal gradient is strong enough to generate energy. 
  7. Other forms of energy: Other kinds of energy that can be used to generate electricity include tides, oceans, and hot hydrogen fusion. Each of them is explored at some length, with the end result being that each has one or more serious drawbacks and cannot be relied on to solve the future energy crisis at present time.

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –7 Employment: Growth, Informalisation and Other Issues| EDUGROWN |

NCERT Most important question:

Question 1.Who is a worker?
Answer.A worker is an individual who is doing some productive employment to earn a living.

Question 2.Define worker-population ratio.
Answer.Workforce Participation Rate (or ratio)
Employment-Growth, Informalisation and Related Issues NCERT Solutions for Class 11 Indian Economic Development Q2
Participation ratio is defined as the percentage of total population which is actually participating in productive activity. It is also called workers-population ratio. It indicates the employment situation of the country. A high ratio means that more proportion of population is actively contributing to the production of goods and services of a country.

Question 3. Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?
Answer: No, they are not workers because they, are not doing any productive activity.

Question 4.Find the odd man out (i) owner of a saloon with more than 10 employees (ii) a cobbler
(iii) a cashier in Mother Dairy
 (iv) a tuition master (v) transport operator (vi) construction worker.
Answer.Owner of a saloon.

Question 5.The newly emerging jobs are found mostly in the sector (service/manufacturing).
Answer.Service.

Question 6.An establishment with four hired workers is known as (formal/informal) sector establishment.
Answer.Informal.

Question 7.Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Answer.Raj is disguisedly unemployed.

Question 8.Compared to urban women, mSre rural women are found working. Why?
Answer.Participation rate for women is higher in rural areas compared with urban areas. It is because in rural areas, poverty forces women to seek employment. Without education, women in rural areas find only less productive jobs and get low wages.
In urban areas, men are able to earn high incomes. So they discourage female members from taking up jobs.

Question 9.Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Answer.Meena is a self-employed worker. She is working in her husband’s cloth shop. She will not get salary.

Question 10.Find the odd man out (i) rickshaw puller who works under a rickshaw owner (ii) mason (iii) mechanic shop worker (iv) shoeshine boy.
Answer.Shoeshine boy.

Question 11.The following table shows distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature of workforce distribution. You will notice that the data is pertaining to the situation in India 30 years ago.

Place of ResidenceWorkforce(in millions)
MaleFemalTotal
Rural12570195
Urban32739

Answer. In 1972-73, out of total workforce of 234 million, 195 million was in rural areas and 39 million in urban areas. It shows 83% workforce lived in rural areas. Gender differences were also observed. In rural areas, males accounted for 125 million workforce and women 70 million of workforce. In urban areas, 32 million males formed the workforce whereas women workforce was only 7 million. In the country only 77 million female workers were there as compared to 157 million male workers. In other words, 32% of female workers were there and 68% male workers were there in the country in 1972-73. The data shows:
(a) pre dominance of agriculture.
(b) more male workers both in urban and rural areas.
(c) less female workers in both rural and urban areas. Also, female workers were much lesser in urban areas.

Question 12. The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the workforce (urban and total) for India?

RegionEstimation of Population
( in crores)
Workers PopulationEstimated
Workers
(in crores)
Rural71.8841.99(71.88/100)x41.9
= 30.12
Urban28.5233.7?
Total100.4039.5?

Answer. Estimated number of workers (in crores) for urban =28.52100 x 33.7 = 9.61 crores
Total workforce = 30.12 + 9.61 = 39.73 crores

Question 13. Why are regular salaried employees more in urban areas than in rural areas?
Answer. In urban areas, a considerable section is able to study in various educational institutions. Urban people have a variety of employment opportunities. They are able to look for an appropriate job to suit their qualifications and skills.J3ut in rural areas, people cannot stay at home as they are economically poor.

Question 14. Why are less women found in regular salaried employment?
Answer. Female workers give preference to self-employment than to hired employment. It is because women, both in rural and urban areas, are less mobile and thus, prefer to engage themselves in self-employment.

Question 15. Analyse the recent trends in sectoral distribution of workforce in India.
Answer. l.The data in occupational structure is as follows (for the year 1999-2000):
(a) Industry wise the distribution is:
(i) 37.1% of workforce is engaged in primary sector.
(ii) 18.7% of workforce is engaged in secondary sector.
(iii) 44.2% of workforce is engaged in tertiary sector.
(b) Area wise the data is:
(i) In rural areas:
77% of workforce is in primary sector.
11% of workforce is in secondary sector.
12% of workforce is in tertiary sector.
(ii) In urban areas:
10% of workforce is in primary sector.
31% of workforce is in secondary sector.
59% of workforce is in tertiary sector.
2. The data reveals that:
(a) Economic backwardness in the country as 60% of workforce is engaged in agricultural activities. A large proportion of population depend on agriculture for their livelihood.
(b) In urban area, tertiary sector account for 59% of workforce. It shows development and growth in the tertiary sector and the fact that this sector is able to generate sustainable employment and provide livelihood to 59% of the workforce.
3. It can be concluded that in the urban areas, tertiary sector is the main source of livelihood for majority of workforce.

Question 16. Compared to the 1970s, ’there has hardly been any change in the distribution of workforce across various industries. Comment.
Answer. It is true that no much change is observed in the distribution of workforce across various industries. It is because the plans did not emphasise the need for development of:
(a) non-agricultural rural employment industries.
(b) small scale, village and cottage industries.

Question 17. Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?
Answer. Jobless growth is defined as a situation in which there is an overall acceleration in the growth rate of GDP in the economy which is not accompanied by a commensurate expansion in employment opportunities.This means that in an economy, without generating additional employment we have been able to produce more goods and services. Since the starting of economic reforms in 1991, our economy is experiencing a gap between GDP growth rate and employment growth rate that is, jobless growth.

Question 18. Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
Answer. With economic reforms in 1991, there has been significant rise in informalisation of workers. Since informal workers face uncertainties of making of living, it is surprising that such a high percentage of total workforce prefer to be employed in the informal sector. All necessary steps should be taken to generate employment in the formal sector, which is only 7% at present.

Question 19. Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is hie unemployed? Why? What kind of jobs could persons like Victor be doing?
Answer. No. he is employed because Victor has work for 2 hours daily for which he gets paid. He is a casual worker.

Question 20. 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. Digging of wells, fencing, building roads and houses, etc.

Question 21. Who is a casual wage labourer?
Answer. Those people who are not hired by their employers on a regular/permanent basis and do not get social security benefits are said to be casual workers. Example: construction workers.

Question 22. How will you know whether a worker is working in the informal sector?
Answer. Informal Sector:
(a) It is an unorganised sector of an economy which includes all those private sector enterprises which employ less than 10 workers. Example: agriculture labourers, farmers, owners of small enterprises, etc.
(b) The workers of this sector are called informal workers.
(c) The workers are not entitled to social security benefits.
(d) The workers cannot form trade union and are not protected by labour laws

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –6 Rural Development| EDUGROWN |

NCERT Most important question:

Q1. What is TANWA? Or Define the term TANWA. Where is it used? 

Ans: TANWA is an acronym for Tamil Nadu Women in Agriculture. It is a Tamil Nadu-based project that aims to train women in cutting-edge farming techniques. It encourages women to take an active role in increasing agricultural output and household income. They support small-scale family activities like mushroom cultivation, soap manufacturing, doll making, and other income-generating activities using the collected funds.

Q2. What is horticulture? How does it work? 

Ans: Horticulture is a subset of crop agriculture, along with agronomy and forestry. Horticulture traditionally involves the cultivation of garden crops such as nuts, fruits, culinary herbs, vegetables, spices, beverage crops and ornamental plants.  Horticulture is bifurcated into the production of:

  • Food plants, it mainly includes olericulture and pomology 
  • Ornamental plants, it mainly includes landscape horticulture and floriculture.

There are two types of crops, permanent and temporary. The permanent crops are only planted once, they are not replanted again and again. While the temporary crops can be sown as well as harvested more than one time in the same year. These crops can be sown in some module trays or plant mats.

Q3. What is the adoption of a village by Parliamentarians? 

Ans: Sansad Adarsh Gram Yojana (SAGY) is another name for it. It is a rural development program that focuses on village development, including social and cultural development. The program was started by India’s Prime Minister, Narendra Modi in 2014. Under this initiative, each Member of Parliament must select one village from the constituency that they represent, excluding their own or their in-laws’ villages, and set requirements for it to become a model village by 2019.

Q4. What is sustainable development? 

Ans: Sustainable development is the concept for achieving human development goals while preserving natural systems’ ability to supply the natural resources and ecosystem services on which the economy and society rely. Sustainable development is defined as the development that meets the requirements of the present without jeopardizing future generations’ ability. 

A simple graphic of three overlapping circles symbolizing social, economic, and environmental progress, emphasizing the necessity for balancing and regulating the trade-offs between them, is frequently used to depict sustainable development. 

Sustainable development has an impact that crosses political boundaries, necessitating collaboration. One of the best instances of sustainable development is the use of wind energy at power houses, workplaces, and other buildings or to pump water. Wind, after all, is a free resource. 

Q5. Which state has an efficient implementation of milk cooperatives? Explain with examples. 

Ans: Gujarat is the Indian state with the most effective milk cooperative implementation. Amul, the Gujarat Cooperative Milk Marketing Federation’s brand, is Asia’s largest dairy brand. 170 Milk Producers’ Co-operative Unions and 15 State Cooperative Milk Marketing Federations process and market milk. Cooperative-created brands have been synonymous with quality and value throughout the years. Vijaya (AP), Verka (Punjab), Saras (Rajasthan), and Nandini (Karnataka) are some of the other brands . 

Q6. What do you mean by organic food? 

Ans: Organic food is grown by farmers who prioritize the use of renewable resources as well as soil and water conservation in order to improve environmental quality for future generations. Organic meat, eggs, poultry and dairy products come from animals that were not given antibiotics or growth hormones.

Organic food is grown without the use of most common pesticides, synthetic fertilizers or sewage sludge, biotechnology, or ionizing radiation. Farmers who raise organic products do not utilize traditional techniques of fertilization or weed and bug control. 

Pyrethrin, which is naturally contained in the Chrysanthemum flower, is an example of a natural pesticide. Crop rotation, green manures and compost, biological pest management, and mechanical cultivation are the main methods of organic farming. 

Its goal is to generate food while maintaining an ecological balance in order to avoid soil fertility or pest problems. Organic agriculture adopts a preventative strategy rather than reacting to problems as they arise.

Q7. Explain green revolution and golden revolution with suitable examples. 

Ans: The explanations are given below:

  1. Green Revolution: 
  • Green revolution refers to the use of HYV (High Yielding Variety) seeds, and various other measures such as increased and better use of fertilizers, irrigation facilities, pesticides etc in order to enhance productivity.
  • The Green Revolution is associated with increased wheat and rice output.
  • It was initiated by Norman Borlaug in the 1960s
  • It is generally known that the Green Revolution in Punjab in the mid 1960s contributed significantly to India’s food self-sufficiency by bringing about a quantum leap in food grain wheat and rice output and productivity. Chemical fertilizers enabled crops to receive additional nutrients, resulting in increased yield. 
  • Synthetic herbicides and pesticides, which were newly developed, controlled weeds, discouraged or killed insects, and avoided diseases, resulting in increased output. As a result, India became self-sufficient in wheat and rice production. 
  • As a result of the Green Revolution and the introduction of chemical fertilizers, synthetic herbicides and insecticides, high-yield crops, and the process of multiple cropping, the agricultural industry’s produce was significantly higher.
  • Productivity growth made it possible to feed the world’s rising population. 
  • There have been numerous achievements in India as a result of the green revolution, such as an increase in per hectare productivity, industrial development, farmer prosperity, a positive effect on consumers, an increase in food production, capitalistic farming, ploughing back profits, a very positive effect on rural employment, and so on.
  1. Golden Revolution
  • The Golden Revolution is associated with the increased use of horticulture crops, which is the production of fruits, vegetables, tuber crops, flowers, and so on, so as to increase their production. 
  • It was from the period ranging between 1991 to 2003.
  • As a result of the Golden Revolution, India became the world leader in the production of fruits such as bananas, mangoes, spices, and coconut. 
  • The reason for the Indian farmer’s increased preference for horticultural crops is because vegetables are short-season crops that are typically farmed on small patches of ground by marginal farmers, generally on less than an acre of land. 
  • As land holdings become more fragmented, vegetable cultivation provides farmers with immediate returns, as opposed to some pulse kinds, which can take up to six months to harvest. 
  • Improved salaries, urbanization, and increased consumption of fruits and vegetables appear to be fuelling demand. 
  • Farmers continue to plant perishables despite frequent price swings, indicating that the returns are higher for these crops than for traditional food grains. This represents a significant shift in Indian agriculture. 
  • Farmers appear to be taking additional risks by growing perishables, where annual losses might reach Rs 32, 000 crore.

Q8. Is rural banking successful in India? What are the difficulties? 

Ans: Rural residents require the same banking services as those in larger towns and cities. A rural community bank may provide typical retail banking services, such as loans and mortgages, to help personal and business customers handle their financial needs close to home. Some rural banks acquire specific commercial expertise in sectors such as agribusiness, depending on their location and local business focus. 

Rural Banking Successful or not?

  • With the bulk of the Indian population still residing in rural or semi-urban areas, rural banking has become an essential component of the Indian financial markets.
  • The Government of India and the Reserve Bank of India have been working tirelessly to achieve total financial inclusion, i.e. timely and adequate access to financial services and credit at an affordable cost, across our huge country. 
  • Pradhan Mantri Jan Dhan Yojana is one of the new government’s latest initiatives that has undoubtedly contributed to bringing banking to every home.
  • This scheme will, over time, significantly reduce the financial inclusion gap between rural and urban areas, but the fact that approximately 70% of India’s population is still rural and banking facility penetration is as low as 24%, i.e. only this percentage of people in these areas have formal bank accounts, cannot be overlooked.
  • These banks’ activities have strengthened the banking culture by making formal credit available to rural households. 
  • These facilities have aided in the modernization of the agriculture-dominated economy. 
  • Banks must consider the nuances of rural culture and recognize that the norms of rural economy differ from those of metropolitan dynamics. Everything, however, has its limitations, hence we can say that rural banking still has a long way to go for being fully successful in a country like India.

Constraints of Rural Banking:

  • Losses: This could be due to high overhead costs, a fall in lending rates, smaller profit margins, a significant increase in employee pay and allowances, and so on.
  • Poor progress: RRBs’ progress falls short of expectations and is slow when compared to other types of banks due to numerous constraints on their operations.
  • Limited investment scope: The primary goal of RRBs was to provide credit to the poor and vulnerable segments of society, such as small and marginal farmers and other vulnerable groups.
  • Lack of training facilities: RRB employees are often urban-oriented, and they may be unfamiliar with the challenges and conditions that exist in rural areas. The growth of RRBs is further hampered by a lack of training facilities in these locations
  • Capital deficiency: Capital adequacy is the fundamental foundation of financial stability. RRBs have capital inadequacy because most of them have significant losses on their balance sheets that are eating away at all of their capital.

Q9. What are the problems faced by farmers in the initial years of organic farming?

Ans: Farmers encountered the following issues during their first years of organic farming:

  • Inability to procure: Organic farming necessitates the use of organic manure, biofertilizers, and pesticides. Although these inputs are less expensive to purchase, poor farmers are still unable to obtain them.
  • Infrastructure: There is inadequacy of infrastructure required for organic farming.
  • Income Generation: Because the income generated by organic farming is lower than that of modern agricultural farming, small and marginal farmers do not use it.
  • Expensive: Because organic foods are expensive, it is difficult for them to find a market for their product.
  • Insufficient Yield: The yields from organic farming are not as much as modern farming.
  • Awareness: Lack of awareness regarding organic farming, its financing and market aspects is there.
  • Shorter Shelf Life:These products have a shorter shelf life.
  • Choice: The production choice of organic crops during off season is very limited.

However, because this method of farming requires more labor, farmers gain a comparative advantage in organic farming.

Q10. What are the steps taken by the Indian government in developing rural markets? 

Or  

Explain the steps necessary to develop rural markets. 

Ans: Rural shoppers, in particular, aspire to acquire branded, high-quality products. As a result, Indian firms are very optimistic about the country’s rural consumer markets, which are predicted to grow faster than urban consumer markets. Since 2000, India’s per capita GDP in rural areas has grown at a compound annual growth rate (CAGR) of 6.2%. In rural and semi-urban India, the FMCG sector is expected to exceed $20 billion by 2018 and reach $100 billion by 2025.

The following are some of the most significant investments and advancements in India’s rural economy.

  • The Ministry of Rural Development needs to complete 48,812 kilometers of rural roads by March 31, 2017 as part of the Pradhan Mantri Gram Sadak Yojana (PMGSY), which has a completion rate of 67.53 percent (32,963 kilometers) as of January 27, 2017.
  • The National Bank for Agriculture and Rural Development (NABARD) plans to install over 200,000 point-of-sale (PoS) devices in 100,000 villages and distribute RuPay cards to over 34 million farmers across India to enable farmers to conduct cashless transactions.
  • Magma Fincorp, a non-banking financing company (NBFC) located in Kolkata, intends to extend its activities in South India, with a particular emphasis on rural and semi-urban markets, in order to assist the company grow swiftly.
  • In order to capitalize on considerable revenue opportunities from the Reserve Bank of India’s financial inclusion effort, Bharti Airtel has applied for a payments bank license and has enlisted Kotak Mahindra Bank as a potential investor.
  • Payments banks are intended to spread throughout the country’s rural and remote areas, providing limited but important services such as money transfers and loans. Banks have the expertise, while telecom companies have the network, making it an excellent fit.
  • The government is doing everything it can to correct the situation. For example, in order to ensure a fair price for farm produce, the government releases MSP (Minimum Support Price) for certain farm products such as wheat, rice, and sugarcane. 

Q11. How can IT help achieve the target of sustainable development and food security? 

Ans: Many contemporary thinkers feel that information technology can play an important role in attaining sustainable development and food security. IT cannot bring about change on its own, but good use of IT as a tool can assist in changing the situation. 

  • The government can employ information technology to distribute timely information about areas prone to food insecurity, allowing for quick response.
  • Farmers can access real-time weather, seed pricing, and farm produce price information. If they have access to the internet, they can also obtain pertinent information about optimal farming methods. 
  • Today, mobile phones have reached the majority of Indian villages, and they can be used as a tool to bring the benefits of information technology to farmers.
  • As the global population grows, much more work and ingenuity will be required to sustainably expand agricultural production, strengthen the global supply chain, reduce food losses and waste, and ensure that all people suffering from hunger and malnutrition have access to nutritious food. 
  • Many people around the world feel that eradicating hunger within the next generation is doable, and they are working together to achieve this goal. 
  • The Sustainable Development Goal to “End Hunger, Achieve Food Security, Improve Nutrition, and Promote Sustainable Agriculture” (SDG2) acknowledges the interdependence of supporting sustainable agriculture, empowering small farmers, promoting gender equality, ending rural poverty, ensuring healthy lifestyles, addressing climate change, and other issues addressed within the set of 17 sustainable development goals. 
  • The Sustainable Development Goals encompass a wide range of themes, including urban living and education, as well as oceans, inequality, and gender. These are 17 in total, all of which were launched in 2015 with a long list of targets that must be reached by 2030. 
  • E-agriculture services can provide farming advice, weather forecasts, and market pricing to farmers in their local area via short messaging service (SMS). Farmers can use the internet to learn about new practices, trade, and form new alliances.
  • In India, e-Choupal provides services that assist farmers in increasing yields and securing higher prices. TradeNet, based in Accra, Ghana, has developed a platform that allows farmers and dealers from all over the world to share market information via mobile networks and the Internet. In Kenya, similar platforms are being built. 
  • A comprehensive monitoring of global food supplies is an essential step in addressing food security. This includes mapping agricultural production and food shortages, as well as developing extensive databases. 
  • Monitoring may be considerably aided by ICT, which allows for remote sensing of agricultural and water resources, as well as the use of computers and software to gather, analyze, and distribute information essential to food security. 
  • Geographic information systems also offer excellent tools for statistical analysis.
  • Rural radio connects individuals in outlying locations and assists them in improving their farming methods and productivity. 
  • Farmers in rural areas can also have access to information through community telecentres, or digital villages, which provide rural residents with Internet, telephone, and fax services.
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –5 Human Capital Formation In India | EDUGROWN |

NCERT Most important question:

Q1. Write three differences between physical capital and human capital?

Ans: Three differences between physical capital and human capital are:

Basis of comparisonPhysical capitalHuman capital
MeaningThe assets other than the non-human assets, which are tangible in nature, and act as an aid in the  manufacturing and production process are referred to as physical capital. For example, plant and machinery, tools and equipment, office supplies, and so on.Human capital is the stock of knowledge, talent, skills, and competencies brought into the organization by the employee.
FormationEconomic and technical processes lead to the formation of physical capital.Social process and a conscious decision made by the possessor leads to the formation of human capital.
Financial statementIt is reflected in the financial statements.It is not reflected in the financial statements.

Q2. What is meant by financial capital? Explain with examples. 

Ans: Financial capital is any monetary economic resource utilised largely by entrepreneurs and firms to purchase the resources required to make their goods or deliver services to the economy. Retail, corporate, and investment banking are a few examples. The most common categories include equity, debt, sweat equity etc.

Q3. How does human capital formation improve quality of life? 

Ans: Human capital formation is influenced by factors such as investment in education, healthcare, on-the-job training, migration, and so on. People who are literate, healthy, skilled, and trained are valuable assets to an economy. As a result, higher population quality indicates higher economic growth. Human capital formation is linked to investment in man and his growth as a creative and productive resource. Also human capital formation will make people capable of performing skilled work, thus increasing their employability, which will further raise their standard of living and quality of life through improved income.

Q4. What is the difference between literacy and education? 

Ans:  The difference between literacy and education is given below:

BasisLiteracyEducation
MeaningLiteracy is primarily concerned with learning to read and write. Education is concerned with the holistic development of a person, resulting in a whole human who can not only read and write but also think in broader terms and analyze things rationally. 
EffectLiteracy cannot make people wise. Education can by teaching people to distinguish between right and evil and to do the right thing at the right moment.
ScopeLiteracy is a narrow concept.Education is a broader concept.

Q5. What do you mean by investment in education? 

Ans: The investment in education is an investment in the acquisition of skills and knowledge of an individual that will boost income or bring long-term advantages such as literary appreciation. It is critical to remember that when a person performs in his chosen sector and increases his income, he also contributes to the nation’s economic progress. Hence, investment in education encourages economic growth.

Q6. ‘School dropouts are giving way to child labour.’ Discuss how this is a loss to human capital? 

Ans: School dropout and child labor are related to the low socioeconomic position since parents want to send their children to work in order to raise household income.

Reasons for school dropout:

  • Poverty.
  • Migration.
  • Child marriage.
  • Child labour.

Out of all the above reasons, child labour and poverty are the major ones. 

  • Due to the gruesome situation of poverty, children are forced to leave their education, and work as labourers. 
  • Child labor deprives children of their childhood and is harmful to the emotional, physical and mental health of these children. 
  • School dropouts prevent children from acquiring literacy skills and pave the way for child labor. 
  • These children are typically employed in dhabas, houses, construction sites, and other menial jobs.
  • Being illiterate accelerates the poverty cycle and, as a result, the process of human capital formation is incomplete.
  • Had these children remained in school, they would have gotten education, thus paving their way for a better earning job  where they could employ their skills and knowledge. But working in menial jobs, neither adds to the skills, nor their income, thus leading to a loss of human capital.

The following economic impact of child labor are examined:

  • Child labor’s effects at the microfamily level, particularly on family poverty in the short and long term.
  • Child labor’s impact on long-run growth and social development via various transmission mechanisms.
  • The international economic implications of child labor, particularly the effects on foreign direct investment.
  • Child labor’s impact on the adult labor market.

Findings at the micro family level:

  • Child labor, in the long run, reinforces household poverty by lowering human capital.
  • Child labor and education are not always mutually exclusive.
  • Child labor in most wage-employment non-agricultural industries does not result in skill development.
  • Child labor, in the long run, exacerbates poverty through increasing fertility.

Findings at the macro family level:

  • Child labor can impair long-run growth and social development by reducing human capital accumulation. 
  • Child labor can be commonly seen in the unorganized and tiny sectors of the economy.
  • The influence on adult pay determines whether lowering child labor would accelerate capital investment and technological advancement. 
  • Child labor may harm more girls than boys, contributing to gender disparities in education. 
  • Child labor does not attract foreign direct investment.
  • Both children and adults can work as substitutes for one another.
  • It is unclear whether children truly substitute for adult employees, hence increasing adult unemployment and/or lowering adult wage rates.

Hence, the above explanation clarifies that school dropouts adds to the child labour in the economy, and creates a loss to human capital.

Q7. Discuss the educational achievements of India and what are the future prospects in education? 

Ans: After the ideas were put into action, efforts were undertaken to promote education. In order to streamline education, the government implemented the Kothari Commission’s recommendations under the “National Policy on Education” in 1968. The key recommendations were universal primary education and universal secondary education. Introduction of a new educational pattern, three-language formula, inclusion of regional languages in higher education, advancement of agricultural and industrial education, and adult education. The following points describe the evolution of education in India post-independence:

  • Expansion of General Education: During the planning period, general education was expanded. Primary education has always been free and mandatory. Since 1995, schools have served a midday meal to reduce dropout rates.
  • Technical Education Development: Technical education, in addition to general education, plays a significant role in the building of human capital. The government has built several Industrial Training Institutes, Polytechnics, Engineering colleges, Medical and Dental colleges, Management institutes, and so on. Examples include IITs, IIMs, and NITs.
  • Women’s literacy: In India, women’s literacy was extremely poor, and was 52% as per 2011 Census. Men had a literacy rate of 75.8 percent. Women’s education was prioritized in the National Policy on Education.
  • Vocational education: The National Education Policy of 1986 strives for vocational secondary education. Since 1988, the federal government has provided subsidies to state governments to help them carry out the program.
  • Adult education: Simply put, adult education refers to education for illiterate adults between the ages of 15 and 35. The First Five Year Plan established the National Board of Adult Education.
  • Education for all: The 93rd Amendment makes obligatory education for all. Elementary education is a fundamental entitlement of all children aged 6 to 14 years. It’s also completely free, and for the fulfilment of this purpose, Sarva Shiksha Abhiyan has been launched.

Q8. What do you think about India’s current situation on gender equality? 

Ans: Gender equality indicates that men and women’s different behaviors, desires, and needs are evaluated, respected, and favored equally. It does not imply that men and women must become the same, but that their rights, duties, and opportunities will not be determined by whether they are born male or female. 

For ages, gender inequality has been a major societal concern in India. In India, the child sex ratio among children aged 0 to 6 years is 918 girls for every 1000 boys, according to Census 2011. This figure speaks for itself, indicating the need for immediate and effective measures to address the root causes of gender disparity.

The inequality between a girl and boy begins even before they are born. In many cases, she is not allowed to be born. The girl kid is regarded as a liability. She is frequently denied fundamental rights and equitable chances to have a healthy childhood and adult life.

Girls account for 48 percent of India’s overall child population, according to Census 2011, and many of them are involved in child labour, child trafficking, and child marriage. As evidenced by the following figures, the future of many females appears to be bleak:

  • In India, 12.15 million children are married, with 8.9 million of them being females; married girls outnumber boys three to one. (According to the 2011 Census)
  • Children made up 51% of all victims of human trafficking, with more than 80% of them being females. (National Cancer Research Board, 2018).
  • In India, there are 223 million child brides, 102 million of whom were married before the age of 15. (UNICEF)

Efforts to modify the situation include the following:

  • Education to assist people change their minds on gender prejudice, as well as initiatives to raise awareness.
  • Continual efforts to dispel gender preconceptions and misconceptions.
  • Assuring the state’s accountability for different plans, policies, laws, constitutional guarantees, and international obligations.
  • Gender-sensitive procedures are becoming institutionalised in different institutions, such as law and programmes.
  • Promoting community responsibility in the prevention of gender discrimination breaches.

All girls deserve equal chances and an empowering environment to grow, whether it’s in terms of education, health, protection, or involvement.

Q9. What is the role of human capital formation in an economy? 

OR

State the importance of human capital formation in a country. 

Ans: Human capital is the primary driver of economic progress. It is a source of both increasing output and technological advancement. The main distinction between industrialized and developing countries is the rate of human capital advancement. 

Human capital is required in developing countries to staff new and expanding government services, to implement new land-use systems and agricultural practices, develop new modes of communication, advance industry, and strengthen the education system. 

  • To be more specific, a country’s citizens are said to have greater human capital if they are well educated, well-nourished, skilled, and healthy. 
  • Underdeveloped countries around the world are investing in people in order to improve their programming skills, social abilities, ideas, and health. 
  • These investments are intended to boost productivity. Their economies’ success is dependent on growing human capacities. 
  • Human capital, on the other hand, does not exist in a vacuum. 
  • To have a better understanding of this complex subject, we must evaluate the physical/passive variables that relate to a country’s ability to make these investments.
  • Human capital formation is the act of enhancing the productive qualities of the labor force by giving more education and boosting the working population’s skills, health, and notarization level. 
  • It is the process of changing a country’s inhabitants into employees capable of generating goods and services. 
  • Relatively unskilled individuals are given the tools they need to contribute to the economy during this process. 
  • It is vital to a country’s long-term economic progress and offers the same advantages as new technology or more efficient industrial equipment. 
  • While this process takes time, it frequently results in a higher quality of life for the population of a country within a few generations, if not sooner. 
  • This procedure can be accomplished through the use of public health policy, education, or training opportunities.

Methods for creating human capital:

  1. The provision of health-care services that affect people’s life expectancy, strength, energy, and vitality.
  2. Provision of on-the-job training to improve labor force skills.
  3. Organizing education at the elementary, intermediate, and tertiary levels.
  4. Adult education and training programs.
  5. Adequate migration facilities for families to adapt to changing job possibilities.

Human capital is inextricably linked to economic growth. The amount of money put into people’s education might be used to gauge the relationship. Many nations, for example, provide free higher education to citizens. These governments recognize that the information gained through education contributes to the development of an economy and leads to economic progress.

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –4 Poverty| EDUGROWN |

NCERT Most important question:

Question 1. Define poverty.
Answer. Poverty in India has been defined as that situation in which an individual fails to earn income sufficient to buy him minimum means of subsistence.

Question 2. What is meant by ‘Food for Work’ programme?
Answer. National Food for Work Programme (NFWP). This programme was initially launched w.e.f. February 2001 for five months and was further extended. This programme aims at augmenting food security through wage employment in the drought affected rural areas in eight States, i.e., Gujarat, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, Rajasthan and Uttaranchal. The centre makes available appropriate quantity of foodgrains free of cost to each of the drought affected States as an additionality under the programme. Wages by the State government can be paid partly in kind and partly in cash. The workers are paid the balance of wages in cash, such that they are assured of the notified minimum wages.

Question 3. State an example each of self-employment in rural and urban areas,
Answer. PMRY is a self-employment programme in rural areas.
SJSRY is a self-employment programme in urban areas.

Question 4. How can creation of income earning assets address the problem of poverty?
Answer. With the creation of income earning assets, people will have a way to earn their livelihood. It will help in removal of poverty.

Question 5. Briefly explain the three-dimensional attack on poverty adopted by the government.
Answer. A country is caught in a vicious trap once poverty is inbuilt in the system. The government has followed three-dimensional poverty removal programme. These dimensions are:

  1.  The rate of economic growth should be raised. Economic growth can be helpful in removing poverty by the trickle down effect. It was felt that raised economic growth would benefit the underdeveloped region and the more backward sections of the society.
  2.  Various beneficiary-oriented programmes need to be strengthened. For this, local institutions have to be involved in these programmes. The activities should be organised on a co-operative basis. Major training programmes should be taken up to improve the skills of potential workers.
  3.  To provide minimum basic amenities. The provision of basic anenities should be made like water supply, sanitation, nutrition, etc. to the people.

Question 6. What programmes has the government adopted to help the elderly people and poor and destitute women?
Answer.

  1. National Social Assistance Programme (NSAP). NSAP was introduced on 15 August, 1995 as a 100 per cent Centrally Sponsored Scheme for social assistance to poor households affected by old age, death of primary bread earner and maternity care. The programme has three components, i.e., N ational Old Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS) and National Maternity Benefit Scheme (NMBS).
  2. Annapurna. This scheme came into effect from April 1, 2000 as a 100 per cent Centrally Sponsored Scheme. It aims at providing food security to meet the requirement of those senior citizens who though eligible for pensions under the National Old Age Pension Scheme, are not getting the same. Foodgrains are provided to the beneficiaries at subsidised rates of Rs. 2 per kg of wheat and Rs. 3 per kg of rice. The scheme is operational in states and 5 union territories. More than 6.08 lakh families have been identified and the benefits of the scheme are passing on to them.

Question 7. Is there any relationship between unemployment and poverty? Explain.
Answer. Unemployment means lack of living. It leads to hunger, gloom, pessimism, indebtedness, etc. They all are signs of poverty.

Question 8. What is the difference between relative and absolute poverty?
Answer.
Poverty NCERT Solutions for Class 11 Indian Economic Development Q8

Question 9. Suppose you are from a poor family and you wish to get help from the government to set up a petty shop. Under which scheme will you apply for assistance and why?
Answer. The assistance can be given by Aajeevika. In this scheme one can get financial help in the form of bank loans. Other Programmes which can provide help are:

  1.  REGP (Rural Employment Generation Programme)
  2.  PMRY (Pradhan Mantri Rctegar Yojana).

Question 10. Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.
Answer. In the rural areas, poor people are those who are landless agricultural labourers, small and mar¬ginal farmers. In the urban areas, poor people are those who are unemployed, underemployed or employed in low productivity occupations with very low wages.
Rural-Urban Break-up of Poverty Following pattern emerges:

  1.  The decline in poverty was comparatively much steep in rural areas where the percentage
    of people living below poverty line fell to 33.8 per cent (2009-10) from 41.8 per cent (2004-05).
  2. In urban areas, percentage of people living below poverty line fell to 20.9 per cent (2009-10) from 25.7 per cent (2004-05).
  3.  The number of people living below poverty line was estimated at 354.7 million in 2009-10.

Question 11. Explain the concept of relative poverty with the help of the population below poverty line in some states of India.
Answer. Relative Poverty refers to poverty in relative terms. It refers to poverty of people in comparison to other people, regions or nations. It indicates that a group or class of people belonging to the lower income groups is poorer when compared to those belonging to higher income groups. Among the major states, percentage of people living below poverty line was 37.9 per cent in
Assam, 23.0 per cent in Gujarat, 20.1 per cent in Haryana, 23.6 per cent in Karnataka, 36.7 per cent in Madhya Pradesh, 24.8 per cent in Rajasthan and 26.7 per cent in West Bengal in 2009-10.

Question 12. Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Answer. Some measures that can be taken are:

  1.  Making people aware about benefits of sanitation.
  2.  Telling people about various programmes of the government.
  3. Helping people to take loan and get self employed.
  4.  Keeping a control on growth rate of population.
  5.  Helping people to start small scale and cottage industries which would generate employment.
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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –3Liberalisation, Privatisation and Globalisation: An Appraisal| EDUGROWN |

NCERT Most important question:

Q1. What is the other name of the World Bank? 

a) Federal Bank 

b) ICICI 

c) IBRD 

d) Bank of America 

Ans: (c) The International Bank for Reconstruction and Development is another name for the World Bank. The International Bank for Reconstruction and Development is its new name.

Q2. What is meant by disinvestment? 

Ans: Disinvestment is the sale or liquidation of an asset or subsidiary by an organization or government. During disinvestment, the government company typically retains 26 percent or 51 percent of the stock, while the rest of the share is transferred to the concerned strategic partner.

Q3. What are the things included in foreign investment? 

Ans: Foreign investment includes both FDI (foreign direct investment) and FII (foreign institutional investment) (foreign institutional investment).

Q4. What are the sources of direct taxes? 

Ans: Direct taxes are those in which the burden cannot be transferred to others. Income tax, corporate tax, gift tax, and so on.

Q5. What is meant by WTO? 

Ans: The World Trade Organization (WTO) was established in 1995 as the successor organization to the General Agreement on Tariffs and Trade (GATT). The World Trade Organization (WTO) is expected to establish a rule-based trading regime in which nations cannot impose arbitrary trade restrictions.

Q6. Industrial growth in India has recorded a slowdown in the period of economic reforms. What are the reasons for this? 

a) Decreasing demand of domestic industrial products 

b) Globalisation 

c) India does not have access to different markets because of high non-tariff barriers. 

d) All the above 

Ans: (d) All of the above. 

Q7. Which of the following are correct regarding growth during the reform period? 

a) The growth of agriculture declined. 

b) The service sector reported fluctuation. 

c) The growth of industrial sectors has gone up. 

d) The growth during this phase was mainly driven by the growth in the service sector. 

Ans: Both (a) and (d) are correct. 

Q8. Give the meaning of Privatisation. 

Ans: Privatization refers to the process of transferring a business or industry from the public to the private sector. This is known as denationalization and destatization.

Q9. What is meant by Globalisation? 

Ans: Globalisation entails the transformation of local and nationalistic perspectives into a broader perspective of an interconnected and interdependent world with free capital, goods, and services transfer across national borders.

Q10. For which contribution is PC Mahalanobis regarded highly by statisticians and economists all over the world? 

Ans: Prasanta Chandra Mahalanobis is widely regarded as the “Father of Indian Statistics” because of his guidance to the evolution of statistical studies which acts as a vital tool for policy planning or we can say as an architect of developmental planning.

Q11. What benefit goes to domestic Industries of reduction in tariff? 

Ans: The main advantages are that imports have become less expensive and that profit margins on exports have increased for domestic industries.

Q12. What are the indirect taxes? Give two examples. 

Ans: These are taxes that are levied indirectly on the individual’s expenses rather than directly on his or her income. Service tax, excise and customs duty, VAT, entertainment tax, and so on. The majority of taxes are now merged and referred to as GST (goods and service tax).

Q13. Why in India, Industrial sector growth has lowered down? 

a) Due to availability of cheaper imports and lower investment 

b) Income of public has increased 

c) Exports are giving good response 

d) Manpower has decreased in industries 

Ans: (a) Due to availability of cheaper imports and lower investment, industrial growth has interrupted. 

Q14. What is fiscal policy? 

Ans: Fiscal policy is the process by which a government adjusts its spending levels as well as taxes  in order to monitor & influence the economy of the nation. It is a monetary policy strategy in which a central bank influences a country’s money supply. Tax cuts and increased government spending are two major examples of expansionary fiscal policy.

Q15. State the meaning of economic reforms. 

Ans: It refers to the policies that are implemented to ensure competitive markets, increased production efficiency, and rapid economic growth.

Q16. What are the impact of economic reforms on agriculture? 

       Or 

Consider the impact of economic reforms on agriculture. 

       Or 

Examine the impact of economic reforms on agriculture in India. 

Ans: Economic reform has had a mixed impact on agriculture. In terms of food grains, India has achieved near self-sufficiency. Both the green revolution and agricultural liberalization in India have had a positive impact on both overall and agricultural GDP. Agriculture was expected to remain the most important sector of the economy in terms of GDP proportion for the rest of the decade in the mid-1990s. Even if agriculture is not the largest contributor to GDP, its importance is unlikely to diminish due to its critical role in providing food, wage goods, employment, and raw materials to industries. Despite their preoccupation with industrial development, India’s planners and policymakers were forced to recognize agriculture’s critical role in the early 1990s by changing basic policy. Gains in agricultural production should not be mistaken for complacency.

Q17. Throw some light on Sircilla Tragedy. 

        Or 

What is the Siricilla Tragedy? 

Ans: Andhra Pradesh’s Siricilla is a well-known handloom industry center in India. The Siricilla Tragedy refers to the suicide of 50 handloom workers, which shocked the country. The power loom weavers of Siricilla textile town in Karimnagar district, who have yet to recover from the impact of FSA (Fuel Surcharge Adjustments), are now facing a crisis of unemployment and power loom closures, with traders cutting off raw material supplies due to the rise in the price of polyester yarn. Suicides among weavers and owners of power looms are not uncommon. In terms of price, quantity, or quality, the Siricilla power looms could not compete with these modern looms. Sales fell and stocks rose, as did the amount of interest owed on bank loans. According to Siricilla, there are two types of looms: power looms and handlooms. Materials worth over Rs.2 crores are said to have been lying in godowns for the last two years.

Q18. Is India able to show its global footprint? 

        Or 

How much do you know about India’s global footprint? 

Ans: After several years of turbulence and volatility in the global economy, signs of growth and stability can be seen. The International Monetary Fund expects global growth to accelerate to around 3.5 percent over the next two years, led by emerging economies. At the same time, political conditions appear to be shifting, and there is a distinct anti-globalization sentiment. Many Indian companies expanded their wings to other countries after globalisation began in India. Many Indian private and public companies, such as ONGC Videsh, Tata Steel, Birla Group, Adani Group, Reliance, and others, now have a global presence. Global growth conditions have become a critical factor in India’s progress. The recent subdued environment has had a direct impact on our growth story. This is a difficult time for Indian industry, which is looking to international markets for both trade and investment opportunities. Despite all of the obstacles on the domestic front caused by infrastructure gaps and financing issues, Indian industry is eager to integrate itself into the dynamic global value chain. The government is actively promoting India’s international relations. Prime Minister Narendra Modi has visited over 50 countries and signed a number of agreements aimed at increasing trade and investment. Defence has emerged as a key sector of cooperation, as India has liberalized its defense manufacturing sector and is encouraging global majors to participate in order to help it develop into a manufacturing hub for defense equipment equipped with relevant technologies. Such interactions expand Indian industry’s global footprint. As the world adjusts to new realities, India has the opportunity to expand its presence in a variety of manufacturing and service sectors.

Q19. What are the Navratnas Companies of India? 

Ans: In 1997, the government conferred the Navratna status on nine Public Sector Enterprises (PSEs). Thus, they’ll have more freedom to compete in the global market because they will be supported in their quest to become global giants. There are currently 17 companies with the Navratna status. To name a few, Bharat Heavy Electricals (BHEL), HAL, NTPC, Oil India Ltd, MTNL, and others. In 1997, the government launched the Navratna scheme to identify CPSEs with comparative advantages and support them in their quest to become. The following are the requirements for obtaining the Navratna status: 

(a) The company must achieve a minimum score of 60 out of 100 on various parameters such as net profit and net worth, total manpower cost as well as total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest, and Taxes), capital employed, and so on.

(b) It must have Miniratna status.

(c) Its board should include at least four independent directors.

(d) The company must spend up to Rs. 1,000 crore, or 15% of its net worth, on a single project or 30% of its net worth for the entire year (not exceeding Rs. 1,000 crores).

Q20. What is India’s export – import policy? 

Ans: The Central Government develops and announces foreign trade policy (Ministry of Commerce). Foreign Trade Policy, also known as EXIM Policy, is a set of guidelines as well as instructions established by the DGFT i.e Directorate General of Foreign Trade in matters pertaining to goods import and export in India. In 2015, foreign trade accounted for 48.8 percent of India’s GDP. Indian EXIM Policy encompasses various policy decisions made by the government in the field of Foreign Trade, specifically with regard to imports and exports from the country, as well as export promotion measures, policies, and procedures. Export is known as the sale of goods & services to other countries, whereas import refers to the purchase of goods and services from other countries. In this day and age of globalization, no economy can afford to be isolated from the rest of the world. All developed and developing economies rely heavily on exports and imports for economic development. With the expansion of international organizations such as the World Trade Organization, UNCTAD, ASEAN, and others, global trade is expanding at a rapid pace. The current policy is known as the India New Foreign Trade Procedure 2015-2020 or the India New Foreign Trade Policy (Exim Policy) 2015-2020.

Q21. Explain briefly the merits and demerits of the economic reforms introduced in 1991. Or What are the pros and cons of economic reforms of India? 

Ans: The year 1991 is significant in the economic history of post-independence India. The country experienced a severe economic crisis as a result of a serious Balance of Payments situation. The crisis was used to introduce some fundamental changes in the content and approach to economic policy. As a response to the crisis, the policies aimed at stabilisation and structural reform were implemented. Former Prime Minister Manmohan Singh is widely regarded as the father of India’s New Economic Policy. The thrust of the NEP i.e New Economic Policy has been to create a more competitive environment in the economy in order to improve the system’s productivity and efficiency. This was to be accomplished by removing entry barriers and restrictions on firm growth.

New Economic Policy is of three types:

1. Liberalisation

2. Privatisation

3. Globalisation

Strengths of New Industrial Policy, 1991: 

The economy is said to enter into a new phase which is described as “reform by storm,” replacing the approaches of “reform by stealth” in the latter half of the 1970s and “reform with reluctance” in the second half of the 1980s.

  • The New Industrial Policy, through various provisions, set fire to the industrial licensing system. A shift away from extensive physical controls has occurred, with a greater emphasis on the role of financial incentives in channeling investments in the desired direction.
  • Significant internal deregulation is taking place in order to strengthen more efficient domestic firms and encourage them to invest and expand.
  • Efforts have also been made to strengthen the legal framework. The SARFAESI Act, 2002 i.e Securitisation, Reconstruction of Financial Assets, and Enforcement of Security Interest Act of 2002, empowers the banks as well as financial institutions in order to enforce their claims on collateral for delinquent secured credit without going through a lengthy as well as time-consuming legal process.
  • One distinguishing feature of India’s policy reform process is that it is gradualist, as opposed to the “big bang” approach used in some other countries. The system is facing much greater pressures for efficiency and modernization, but at a slower pace.

Major Weaknesses of New Industrial Policy, 1991: 

  • With limited export incentives and regulated labor markets, there appears to be little reason to believe that today’s infants will provide a growth engine consistent with current targets.
  • There is concern about the slow pace of investment in many fundamental and strategic industries such as engineering, power, machine tools, and so on. This is primarily due to the low rate of return in these sectors, which is lower than the rate of return in new or “sunrise” industries (e.g. IT sectors).
  • Restructuring and modernization of industries as a result of the new industrial policy frequently results in labor displacement. This would necessitate the redeployment of labor through rehabilitation programs.
  • A focus on internal liberalisation without a sufficient emphasis on trade policy reforms resulted in ‘consumption-led growth’ rather than ‘investment-led growth’ or ‘export-led growth.’ As a result, the resulting growth process was not long-term sustainable.
  • The liberalisation policy appears to have failed to achieve one of its main goals, namely the creation of more innovative firms.

Q22. Define the term outsourcing. How much has India benefited? 

Or 

Outsourcing has created a lot of employment opportunities in India. Give arguments in favour of this statement. 

Ans: Because of its ability to adapt to changing needs, India remains the leading outsourcing destination. According to NASSCOM, (National Association of Software and Service Companies), the apex body of India’s premier IT software and service (IT & BPO) companies, India’s share of the global outsourcing market increased from 51% in 2009 to 55% in 2010. India continues to stand out for its customer service and efficiency, so its future looks promising.

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Following Points Focus Why India is First Choice in Outsourcing World: 

  • Customers today seek not only cost-effective solutions for their outsourced business, but also skilled personnel, increased productivity, service quality, and business process excellence. With its large population and multi-skilled workforce, India will continue to be favored for both backend and front-end outsourcing.
  • Outsourcing is known as the business practice of hiring a third party to perform the services as well as create goods that were used to perform in-house
  • India continues to be unrivaled with respect to its skilled as well as talented human resources. It has a population of over 1.2 billion people, and each year, approximately 3.1 million graduates enter the labor force. India is also the world’s largest English-speaking country, larger than the United States and the United Kingdom combined.
  • The significant cost savings in the country that companies can achieve is one of the reasons why India remains a top outsourcing provider. This is primarily due to the large disparity in personnel costs between India and developed countries. In the United States, for example, a good developer can charge between 50and50and80 per hour (for a full-time staffer depending on skills and experience). In comparison, the hourly rate of the developer  in India can be negotiated down to as low as $15/hour.
  • While cost is an important factor in outsourcing, the consistently high quality provided by Indian outsourcing firms has also allowed India to maintain its position as the top outsourcing destination. In its Annual Offshore Outsourcing Conference, the National Outsourcing Association (NOA) reflected on a common trend among international companies that choose India as their preferred outsourcing destination.
  • The Indian outsourcing industry is considered to be supported by a stable pro-IT government whose economic, GDP growth, taxation, power, telecom, industrial parks, and special zones policies have aided in the improvement of infrastructure and communications systems.
  • The Indian government has aided the IT industry by providing various tax-related and other benefits, as well as enacting the Information Technology Act, which recognizes electronic contracts, prohibits cybercrime, and encourages document e-filing.

Q23. What do you mean by disinvestment? How is it done in public sector enterprises in India? 

        Or 

What is the difference between disinvestment and privatisation? 

        Or 

Do you think loss making enterprises should be privatised? Why? 

Ans: Disinvestment refers to the dilution of the government’s stake in a public enterprise. This can be accomplished in two ways. When the government sells less than 50% of its equity in a public enterprise, it is referred to as disinvestment, and control and management of the business enterprise remain in the hands of the government. Privatisation occurs when the government’s disinvestment or sale of its equity capital exceeds 50%, transferring majority ownership and thus control and management of the enterprise to private enterprise. As a result, in many disinvestment programs, the government retains 51% or more of the total equity capital of public enterprises, retaining control and management. The public sector is underinvesting because the government’s resources are limited. The government requires resources in order to reduce its budget deficit. Second, the government urgently needs resources to invest in infrastructure, social sectors such as education and public health, and poverty-relief programs. Several economists have proposed using the proceeds of disinvestment to retire a portion of the public debt. Disinvestment, particularly privatization of public-sector enterprises, will ensure that their operations are governed by professional managers guided by market mechanisms rather than being administered by bureaucrats.

Disinvestment of Public Enterprises Can be Made in a Number of Ways:- 

  • The entire public enterprise can be sold to the highest bidder or another private sector firm. In this case, the private firm gains ownership as well as control or management.
  • The second method of disinvestment in a public enterprise is to sell a portion of the government stake to a strategic private company. A strategic company is one that has a strategic interest in the public sector and the ability to run it efficiently.
  • Finally, a limited number of government shares in a public enterprise can be sold through an auction of shares among a limited number of private firms. Merchant bankers can help determine the reserve price of a company’s shares for auction.

Q24. What are the major factors responsible for the high growth of the service sector? 

        Or 

Enumerate the Reasons Responsible for the Shining Service Sector of India. 

Ans: The services sector in India encompasses a wide range of activities, including trade, hotel and restaurant operations, transportation, storage and communication, financing, insurance, real estate, business services, community, social, and personal services, and construction-related services. It is not without reason that India’s dominant services sector is referred to as the economic engine. Globalization and increased manufacturing automation have reduced the relative demand for manufacturing jobs in advanced economies. Because of the increased supply, this frees up labor for the service industry and puts downward pressure on wages in the less skilled parts of that sector. More students are opting for degrees in finance and business for higher skilled parts of the service sector, but they are discovering that deregulation of the banking industry has created more high paying opportunities in things like the investment banking segment, rather than being a CFO at a small manufacturing concern.

Major Factors Responsible for the High Growth of the Service Sector in India: 

  • Economic Reforms in 1991: MNCs were able to enter the Indian market after economic reforms were implemented in 1991. It removed restrictions on foreign investment and allowed for the inflow of foreign capital. Foreign direct investment has increased dramatically as a result of the government’s liberalized policy. It brought about a number of changes in the Indian market.
  • Low Labour Cost: India’s labor costs were lower than those of developed countries. This enticed multinational corporations to outsource their business services to India. As a result, the service industry grew rapidly with companies that recognized the value of business outsourcing processes such as training, teaching, and marketing in improving business performance.
  • Growth of Information Technology (IT): The expansion of information technology (IT) in India has greatly aided the growth of the service sector. IT aided the country’s vital service businesses. The country also has a large number of highly skilled software resources. Many state governments, including those in Andhra Pradesh, Madhya Pradesh, Karnataka, Maharashtra, and Delhi, have highlighted the importance of the IT sector.
  • Structural Changes: The Indian economy was undergoing structural changes, such as a shift from the primary to tertiary sectors. The service sector saw an increase in demand as a result of this transformation.
  • Market Orientation: The manufacturing sector experienced numerous changes in the market’s competitive environment and demand-supply forces. This shifted their focus from production to market orientation. Furthermore, it required manufacturing companies to conduct marketing research, accounting, auditing, human resource management, and research and development organizations to analyze market conditions. These were solely service-oriented functions.

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –2Indian Economy 1950-1990| EDUGROWN |

NCERT Most important question:

Q1. What is the type of economy adopted by India?

a) Communist 

b) Capitalist 

c) Mixed 

d) Socialist 

Ans: (c) Mixed economy is adopted by India.

Q2. What do you mean by the Planning Commission and who is the chairman of this commission? 

Ans: The Planning Commission is an agency of the Indian government that was established in 1950 to oversee the country’s economic and social development. Their primary responsibility is to create five-year plans. The chairman of the committee is the country’s Prime Minister. This commission was abolished in 2014.

Q3. Term HYVP stands for? 

a) High Yielding Varieties Product 

b) High Yielding Various Programme 

c) High Yielding Varieties Programme 

d) High Yielding Various Product 

Ans: (c) High Yielding Varieties Programme 

Q4. Who is the father of a high yielding variety seed? 

Ans: Norman Borlaug, an American agricultural scientist who was awarded the Nobel Peace Prize in 1970 for breeding higher-yielding varieties, is regarded as the father of HYV. He has also been dubbed the “Father of the Green Revolution.”

Q5. Define Economy. 

Ans: A large set of interconnected production and consumption activities that aid in determining how scarce resources are allocated is referred to as an economy. The economy is what allows us to survive and thrive. 

Q6. Planning commission was set up in which year in India? 

a) 5th March, 1951 

b) 25th April, 1951 

c) 20th March, 1951 

d) 15th March, 1950 

Ans: (d) Planning commission was set up on 15th March, 1950. 

Q7. What were the priorities in the 11th five-year plan? 

Ans: Agriculture, infrastructure development, health, and education were the primary focus areas of the 11th five-year plan. 

Q8. What is meant by import substitution in Indian economy? 

Ans: Import substitution industrialization (ISI) is a trade and economic policy that advocates substituting domestic production for foreign imports. ISI is based on the idea that a country should try to reduce its reliance on foreign goods by producing industrialized goods in its own country. Many mechanical, software, instruments, and machines are now being manufactured in our country in order to save crores of rupees in imports. 

Q9. What do you mean by land ceiling? 

Ans: The size of land that an individual or family can own is defined by the land ceiling. This act was passed in India in 1961-62 and was governed by all state governments. However, the ceiling limits differed from state to state. 

Q10. What is the year of India’s twelfth five year plan? 

a) 1997 to 2002 

b) 2002 to 2007 

c) 2012 to 2017 

d) 2007 to 2012 

Ans: (c) The twelfth five-year plan ran from 2012 to 2017.  

Q11. How much percent of India’s population was dependent on agriculture during independence? 

a) 75% 

b) 50% 

c) 85% 

d) 65% 

Ans: (a) 75% of India’s population was dependent on agriculture during independence. 

Q12. Define small scale industries. 

Ans: Small scale industries are those with a fixed investment in plant and machinery, whether owned outright, leased, or hired out, that does not exceed Rs. 1 crore. Paper napkins, facial tissues, candle making kits, wooden toothpicks, and other items are examples. 

Q13. The portion of agricultural produce which is sold in the market by the farmers is called _________. 

a) Trade deficit 

b) Marketed surplus 

c) Subsidy 

d) Import substitution 

Ans: (b) It’s referred to as marketed surplus. It occurred for the first time in India following the successful implementation of the green revolution in the country. 

Q14. Who presented the 1st five year plan of the country? 

Ans: Pandit Jawaharlal Nehru, our country’s first Prime Minister, presented the first five-year plan in parliament. It was first introduced in 1951. 

Q15. What were the focus points of the first and second five year plan? 

Ans: Agriculture was the primary focus of the first five-year plan, but in the second five-year plan, the emphasis shifted to industries.

Q16. What was the aim of five year plans? Or Why did India need five year plans? Or What were the goals of five year plans in our country and how much has been achieved? 

Ans: After gaining independence in 1947, India had to essentially rebuild its economy from the ground up. The leaders of the time will have to decide on the type of economy India would have as well as the economic planning. This is how the five-year plan came to be. These plans are known as five year plans in India because they are made for a period of five years. Each five-year plan is created with a specific goal in mind. A five-year plan has five generalized goals, of which one or two are given the most importance in a specific plan. So, the five types of goals that we cover in our five-year plans are shown below.

Main aims of five year plans:

  • Growth
  • Modernisation
  • Self-reliance
  • Equity

Some of the major accomplishments seen through five-year plans are listed below: 

i. Significant rise in national and per capita income.

ii. Good agricultural development 

iii. Industrial development 

iv. Transportation and communication development 

v. Job creation 

vi. Power and price stability

vii. Scientific and technological advancements

viii Increased capital formation

Q17. Why did India take up a mixed economy? 

Or 

Amidst different types of economies in the world, why does India focus on a mixed economy model? 

Or 

Throw Light On the Mixed Economy Model of India. 

Ans: The country’s leaders faced some difficult decisions in the post-independence era. Most countries in the world followed one of two models at the time: capitalist economy or socialist economy. Jawaharlal Nehru, our first Prime Minister, preferred the socialist model. A pure socialist economy, on the other hand, cannot thrive in a democracy like India. Capitalism was also unsuitable because the government needed to build an economy while also caring for the common man and his needs. As a result, our economy incorporated elements of both socialism and capitalism. It was then decided that India would build a strong socialist society in which the government would care for its citizens. The government, on the other hand, would promote and encourage a strong private sector in the future. With our democracy in mind, there would be no prohibition on private property or wealth. That is why the Indian economy is referred to as a mixed economy because it is neither completely socialist nor completely capitalist. In India, both the private and public sectors operate in the market. Despite the fact that privatization in most sectors did not begin until after 1991, it has provided a significant and much-needed boost to the economy. 

Q18. What are the advantages and disadvantages of the green revolution? 

Or 

What are the drawbacks of the green revolution? 

Or 

Is there any negative side of the green revolution? 

Ans: The green revolution refers to the significant increase in food grain production (such as rice and wheat) as a result of the introduction of high-yielding varieties, the use of pesticides, and improved management techniques. We will now look at the benefits and drawbacks of the green revolution.

Let us Begin With the Benefits of the Green Revolution:

i. It enables large-scale agricultural operations.

ii. It eliminates the need to leave land fallow.

iii. It has the potential to grow any crop in any location.

iv. Job opportunities in the agricultural and industrial sectors are created. 

The Following are Some of the Disadvantages of the Green Revolution:

i. Constant crop replanting without restoring soil health necessitates the use of more fertilizer to keep nutrients in the soil and replenish them.

ii. It has a negative impact on crop production due to soil degradation, which results in decreased production of fruits, vegetables, and pulses.

iii. Small farmers were unable to keep up with the falling price of grains and production because they were unable to afford fertilizers, pesticides, machinery, HYV seeds, and other agricultural inputs, causing them to become poorer.

iv. Excessive use of chemical fertilizer, as reported in some areas, resulted in the destruction of beneficial microorganisms, insects, and worms in soil. 

Q19. What is meant by socialist economy? Elaborate with examples. 

Ans: Socialism is primarily concerned with production in order to meet human needs. Unlike capitalism, where the emphasis is on sale and profit. Socialism entails workers exercising direct control and management of industries and social services through a democratic government based on their national economic organization. Karl Marx and Fredric Engles first introduced the concept of socialism in their book, ‘The Communist Manifesto.’ A socialist system is exemplified by the former Soviet Union. Denmark, Finland, Norway, and Ireland are all examples of socialist countries. Cuba is an excellent example. Its economy is run by the government, and there is no stock exchange. Healthcare and education are completely managed and administered by the government. 

Q20. What is the policy of ‘land to the tiller’? 

Or 

Have you heard about land tiller policy? What is it? 

Ans: The adage “land to the tillers” means that the person who works for something should reap the benefits and rewards. The Act, which has been previously restricted to owning property only for government projects, has been amended several times to broaden the definition of public purpose, so that land can now be acquired for any project and by anyone. The concept of “land to the tiller” is beneficial because it, above all, provides an incentive to the person who ploughs the land. It inspires the hardworking individual to work even harder.

Q21. Explain the Green Revolution in brief. 

Or 

Why is the term Green Revolution so famous? 

Or 

Write a Short Note on the Green Revolution. 

Ans: Food is the most basic requirement for all living creatures on this planet to survive. It is the source of energy used by living organisms for their growth, development, and work.

The Green Revolution was a scientific breakthrough in grain cultivation. It put genetic engineering, chemical fertilizers, and pesticides into use. It introduced fantastic farming technology. The Green Revolution in India refers to the period when agriculture in India transitioned to an industrial system as a result of the adoption of modern methods and technology such as high yielding variety (HYV) seeds, tractors, irrigation facilities, pesticides, fertilizers, and so on. Norman Borlaug pioneered the green revolution. India is self-sufficient in food production solely due to modern agricultural practices. The Green Revolution of the 1960s was a watershed moment in Indian history. The need for a new agricultural strategy arose as a result of the need to increase agricultural production in the face of production stagnation and rapidly rising demand. It was initially implemented over a total area of 1.89 million hectares. The coverage had grown to 9.2 million hectares on the eve of the Fourth Plan. In 1989-1990, the total area was 63.8 million hectares, accounting for nearly 35% of gross cropped area.

The Main Components of Green Revolution are as Follows:

(i) Better pesticides

(ii) High yielding

(iii) Better ignition

(iv) Land reforms

(v) Command Area Development (CAD) 

(vi) Rural electrification

(vii) Farm mechanization

(viii) Rural roads and marketing

Agriculture production is slow, and investment is also insufficient. Even after the so-called success of the Green Revolution, India’s production is far below that of the international structure. The actual yield of groundnut is 9.1 quintal per hectare, which is one-third of the world’s highest yield rate. Thus, even after the Green Revolution, India’s acre-wise productivity remains significantly lower than the international standard. However, India has surpassed the United States to become the fourth-largest wheat producer. The reality is that after the rural works programs and the course of actions, the middle and lower strata of rural society can benefit, if not the upper strata. The middle strata benefited greatly due to the size of their holdings. They became viable as a result of their entrepreneurial spirit. This emerging middle-income group gained more motivation to engage in additional economic activities. They imbibed zeal and confidence and could be a source of inspiration for others, emerging as a new leader in a society dominated by previously affluent classes. If the development process is democratic, this new leadership can take the necessary steps to usher in new developmental activities in rural society for the grass roots level. The new initiatives have the potential to spark a new wave of economic development in rural areas.

Q22. What are the general problems of an economy? 

Or 

Throw some light on the central problems of the economy. 

Or 

“Whenever the problems of choice and scarcity arise, economics is said to emerge”. Discuss some of the problems of the economy. Drones are airborne devices that are used in agriculture to improve crop output and to track crop growth.

They assist farmers in developing agricultural field systems for using water, fertilisers, herbicides, and seeds. These tools have revolutionised agriculture by allowing farmers to save significant amounts of money while also increasing efficiency and profitability.

Ans: The below-designed module can help us understand the economy’s problems. Green Revolution Components Reforms to the Land Marketing and rural roads Agricultural mechanization Command Area Development (CAD) for Rural Electrification.

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Now We Will Concentrate on Better Understanding the Problems:

  • The basic economic problem is one of scarcity of resources, which causes a problem of choice. It is also referred to as the resource economisation problem, which refers to the issue of making better and more efficient use of limited resources in order to satisfy the greatest number of wants.
  • The main causes of central problems are unending human desires, limited economic resources, and alternative resource uses.
  • One of the most important issues that every economy faces is resource allocation.: – 

(I) What should be produced and how much should be produced?

(ii) How do you produce?

(iii) For whom should the product be produced?

  • What to produce: An economy has unlimited wants but limited means that can be used in other ways. The economy cannot produce all types of goods such as consumer goods, producer goods, and so on. As a result, the economy must decide what types of goods and services to produce and in what quantities.
  • How to Produce: This is a problem of selecting a manufacturing technique. There are two production methods.

(a) Labour-Intensive Technique: This is a production technique in which labor is used more than capital. 

(b) Capital-Intensive Technique: Capital is used more than labor in this technique.

  • For whom to produce: This is a problem related to the distribution of produced goods among various groups in society. It has two components: – 

(i) Individual distribution

(ii) Distribution of functionalities Personal distribution: When national income is distributed based on who owns the factors of production.

When the national income/production is distributed among different factors of production such as land, labor, capital, and entrepreneurship for providing their services in terms of rent, wages, interest, and profit, this is referred to as functional distribution. 

  • A problem Related to the Efficient Use and Full Utilization of Resources: Production efficiency means producing the greatest amount of goods and services possible with the available resources. Because resources are already scarce in comparison to the demand for them, an economy must ensure that its resources are not underutilized; underemployment is nothing more than resource waste.
  • Resource Growth Problem: It is related to an increase in the economy’s production capacity, which causes the quantity of production to increase. 

Q23. Though the public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in this light of the fact. 

Or 

Explain the rationale of public sector enterprises. 

Or 

What is the role of public sector enterprises in India? 

Ans: In India, a public sector company is one in which the Union Government, a State Government, or a Territorial Government owns 51 percent or more of the stock. Currently, only three sectors remain exclusively reserved for the government, namely railways, atomic energy, and explosive materials. Private companies are not permitted to operate in these sectors. Until the 1990s, major sectors of the economy were reserved solely for the government, resulting in a significant loss of our precious natural resources and trapping the entire country in a major economic problem. From the first five-year plan to the 1980s, our country grew at a rate of 3.5 percent per year on average. 

Profitable public-sector enterprises are the government’s primary source of revenue for special welfare programs. This enables the public to promote income and wealth distribution equality. PSUs with a social mission, such as railways, water supply, and postal services, should be kept in the public sector. Profitable industries should be kept in the public sector only because their resources can be used for development. The government should retain strategic industries in order to avoid the formation of monopolies in the private sector.

Role of Public Sector Enterprises in India

  • Maximizing the rate of economic growth
  • Balanced regional development
  • Agricultural development
  • Increased employment opportunities
  • Import substitution

Governance of Public Sector Undertakings:

The following are the important roles and responsibilities of the Public Sector Department: 

  • General public policy.
  • Issues pertaining to the issuance of Presidential Directives and guidelines to Public Sector Enterprises.
  • Policy guidelines for Public Sector Companies in areas like performance improvement and evaluation, financial management, personnel management, board structures, wage settlement, training, industrial relations, vigilance, and performance appraisal, among others.
  • Issues concerning the reservation of positions in public-sector enterprises for specific groups of citizens.
  • All issues pertaining to the Memorandum of Understanding between Public Sector Enterprises and administrative Ministries/Departments.
  • Issues pertaining to the delegation of powers to the Board of Directors.
  • To conduct in-depth studies on key areas of Central PSE operation. • Concerns about the International Centre for Public Enterprises (ICPE) – External website that opens in a new window.
  • SCOPE (Standing Conference of Public Enterprises) – External website that opens in a new window
  • Monitoring and evaluating the performance of PSEs, serving as a data repository, and producing an annual survey for the Parliament.
  • Permanent Arbitration Mechanism for resolving disputes between public sector enterprises and Government Departments, excluding tax disputes; • Appraisal of proposals from various administrative Ministries pertaining to restructuring, revival, joint venture, and so on. Increasing the rate of economic growth as much as possible Regional development that is balanced Agriculture advancement expanded employment opportunities Substitution of imports
  • DPE Guidelines – This is an external website that will open in a new window.
  • Economic Affairs Department – External website that opens in a new window
  • Expenditure Department – External website that opens in a new window
  • Standing Conference Of Public Enterprises (SCOPE) – External website, which will open in a new window.

Q24. Construct a pie chart on the occasional structure of the Indian economy available in the following table:

Sector1950-511990-912017-18
Agriculture75.265.345
Industry11.814.525
Services1320.230

Ans: For this, we will create different pie charts based on the year.

Pie-chart for 1950-51

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Pie-chart for 1990-91

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Pie-chart for 2017-18

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Economics IMPORTANT QUESTIONS | CHAPTER –1Indian Economy on the Eve of Independence| EDUGROWN |

NCERT Most important question:

Q1. When was the first census data collected during British India?

a) 1882

b) 1881

c) 1981

d) 1985

Ans: (c) 1881

Q2. What is Muslin?

Ans: Muslin is a high-quality cotton fabric that is widely available nowadays. Malmal is the finest form of muslin and is claimed to be the purest fabric in the world. The name ‘Muslin’ is claimed to have originated in the British Indian port town of ‘Maisolos’. People in Dhaka (now in Bangladesh) used to hand-weave it from fine hand-spun yarn.

Q3. What is commercialisation of agriculture and when did it begin?

Ans: Commercialisation of agriculture is an occurrence in which agriculture is governed by commercial reflection. In general, certain essential crops began to be grown for sale in national and international markets rather than for consumption in the village. Commercialization of agriculture in India began under British rule.

Q4. What was the life expectancy during British India and what is it today?

Ans: According to government statistics, the average life expectancy in British India was 32 years. It has now been 69.27 years.

Q5. What was the importance of the Suez Canal during British India?

Ans: The Suez Canal, which opened in 1869, drastically reduced the cost of goods transportation between Britain and India.

Q6. What is GDP in economics?

Ans: The Gross Domestic Product deals with the value of economic activity of a country. It is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. In 2017, India’s Gross Domestic Product (GDP) was valued at 2597.49 billion US dollars. India’s GDP accounts for 4.19 percent of the global economy.

Q7. When were Railways introduced in India?

a) 1830

b) 1860

c) 1900

d) 1853

Ans: (d) The year 1853 marked the beginning of railways in British India.

Q8. Iron and steel industries began coming up in which year?

a) 19th Century

b) 17th Century

c) 14th Century

d) 20th Century

Ans: (d) The 20th Century has seen the beginning of the Iron and steel industries in India.

Q9. What was the infant mortality rate of British India?

Ans: In British India, the infant mortality rate was 218 per thousand, which was fairly high.

Q10. Which are the industries that were adversely affected due to partition of India?

Ans: After partition, the Jute and Textile Industries were the badly affected ones.

Q11. Name some individuals who tried to estimate colonial India’s per capita income.

Ans: Findlay Shirras, Dadabhai Naoroji, William Digby, V.K.R.V. Rao, and R.C. Desai were among those who attempted to estimate such figures. Despite the inconsistencies in the results, V.K.R.V. Rao’s estimates are considered accurate.

Q12. What were the motives behind deindustrialization by Britishers in India?

Ans: The two primary motives behind deindustrialization where to obtain superior quality raw materials at an extremely modest rate from India and to sell machine-made imported western goods at an exceptionally high rate in the Indian market.

Q13. What is export surplus?

Ans: The amount of goods and services that a country exports that are in excess quantity as compared to that of the amount of goods and services with it imports from outside its geographical boundaries is called an export surplus.

Q14. How did export surplus lead to economic drain of wealth during colonial rule?

Ans: In a sense, whatever surplus India procured through excess exports, was redirected to colonial Britain under different expenses, for example, military payment, “home charges”, interest payments or remittances of British residents and officials in India to Britain.

Q15. What percentage of labour were employed in the manufacturing and service sector in pre independent India?

Ans: In pre-independence India, manufacturing employed 10% of the workforce, while the service sector employed 18%.

Short Answer Questions                                                                       (3 or 4 Marks)

Q16. What was the motive behind the deindustrialization by the colonial Govt. in India?

or

What was the two-fold motive behind the systematic deindustrialization affected by the British in pre-independent India?

Ans: The two-fold motive behind the British systematic deindustrialization is as follows.

(i) Making India a Raw Materials Supplier: The fundamental rationale was to convert India to a simple exporter of significant raw materials in order to feed Britain’s quickly growing industrial base.

(ii) Developing India as a Finished Goods Market: One more significant goal of the British Government was to transform India into a rambling market for those industries’ final products ensuring that they could be guaranteed for the British industries.

Q17. How did the introduction of the railway system change the Indian Economy?

or

Discuss the changes railways brought to India?

Ans: The notion of bringing railways to India was first proposed in the 1830s. They proposed building a railway to connect the three ports of Bombay, Calcutta, and Madras. People were able to travel large distances, which helped India break down geographical and cultural barriers. It helped to commercialise Indian agriculture, which had a negative impact on our villages’ self-sufficiency. The volume of our trade grew, yet our people did not benefit from the earnings.

Q18. What do you mean by economic drain during British India?

or

Who has contested the theory of drain of wealth from India?

or

What do you understand about the drain of Indian wealth during the colonial period?

Ans: In the nineteenth century, Dadabhai Naoroji proposed the ‘Drain of Wealth’ idea. The exploitation of Indian resources was a hallmark of the colonial period. Britain’s principal motivation for conquering India was to gain control of a reliable source of low-cost raw materials to support its own industrial base in the country. Indian money, on the other hand, was spent on expensive finished products imported from Britain, making Britain richer at India’s expense. In addition, the British government employed India’s manpower to expand its colonial base outside of the country. Indians were paid less in the British army than their British equivalents. The money collected from Indiana and the export surplus generated through India’s overseas trade were also used to cover the costs of war and administrative expenses incurred by the British government to manage the colonial administration in India. As a result, British rule plundered Indian resources to serve their own interests.

Q19. How were traditional handicraft industries ruined under British rule in India?

or

The traditional handicrafts industries were ruined under British rule. Do you agree with this view? Give reasons in support of your answer.

or

How British rule ruined the life of artisans and craftsmen in India?

Ans: British economic policies devastated India’s handicrafts and cottage industries, which were formerly the principal sources of trade and income. The British damaged the cotton weaving and spinning industries, as well as the silk and woollen industries, as well as the pottery, paper, metal, and tanner businesses. The British followed the policy of de-industrialization to demolish Indian craftsmanship industries for their own advantage. They changed India to a simple exporter of crude materials for the forthcoming present-day businesses in Britain. The East India Company’s free-trade stance aided them in dictating trade conditions. They also forced Indian artisans to sell their wares at below-market prices, and they hired their services at pay well below the going rate. Indian commodities were subjected to hefty tariffs in the English market, whereas British goods were granted duty-free access to Indian markets. They exploited India in this way, resulting in the demise of world-renowned Indian handicrafts.

Q20. How was the foreign trade in the colonial period?

or

Discuss the state of foreign trade during the British period

or

Write a short note on the colonization effect on foreign trade of India.

Ans: India’s part of the global economy was roughly 20% at the beginning of the nineteenth century, and it was constantly increasing. The British had diminished India’s contribution to roughly 4% by the time they left. As a result, colonial rule crippled foreign trade to a considerable extent. India’s produced goods had a global market prior to colonisation. Some examples include Kashmir and Amritsar shawls and carpets, Banarasi silk sarees, and Nagpur silk textiles. The British intended to divert this vast volume of trade to their own advantage. With the support of restrictive commodities production, trade, and tariff policies during the British era, India’s external trade with the rest of the world was effectively cut off. Half of all international trade was confined to the United Kingdom. With the inauguration of the Suez Canal, British control over Indian international trade became much tighter. As a result of the oversupply, there was no flow of gold or silver. Such atrocities finally led to the emergence of India’s developing foreign trade sector.

Q21. Why is the impact of British rule highly debated among historians?

or

Was British colonialism good or bad for India?

or

What were the benefits of British rule in India?

Ans: The British Empire’s dominance in India is conceivably the most questionable and the most fervently discussed part of the historical backdrop of the British Empire.  Most critics of British rule point out that all of these gains went to a small British ruling class, while the rest of the Indians benefited little. Most Indians were poor and oppressed by their own leaders before the British arrived, and British control was less harsh on ordinary Indians than rule by Indian kings, according to supporters of British rule.

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Following are some of the benefits of the British rule in India: 

1. Education System: People in India are divided because of the various languages spoken in different parts of the country. The British, on the other hand, made English compulsory in the educational system throughout the country in order to recruit clerical personnel among Indians. They were able to lower their administrative costs as a result of this. They also felt that Indians who were taught through their system would eventually adopt their beliefs. This, on the other hand, benefited the Indians in a completely different way. Communication in India was facilitated by the use of a common language. Indians gained a greater understanding of the world, society, and systems. Overall, it has aided in the modernization of the Indian people.

2. Transportation: Prior to the arrival of the British, the only mode of transportation in India was bullock carts and other animals. The British built a vast network of highways and railways to facilitate the movement of raw resources from their source to the ports. The Red Hill Railroad Line in Madras was the first railway line. It was built in 1837 and was used to transport granite stone. In 1853, the first passenger railway line was established between Mumbai and Thane. In the same year, the postal service was also established.

3. Modernisation of the society: The British instilled in India the concepts of liberty, equality, human rights, science, and technology.  This, together with a well-structured educational system, opened the path for the country’s modernisation that was completely oblivious to the world’s modern developments. In 1829, Sati, a ritual in which a widow threw herself in her husband’s funeral pyre, was outlawed. In 1929, the Sharda Act was passed to prevent child marriage.

4. Architecture: The Britishers left behind an enormous number of public structures glad for their architectural wonders such as The Rashtrapati Bhavan, The Parliament House, Gateway of India and many others. They likewise presented current techniques and methods for development to the country. 

Q22. Who were Zamindars? What was the Zamindari system in British India?

or

Write a short note on Zamindari system.

or

How was the Zamindari system of land settlement?

or

What were the various forms of revenue settlement adopted by the British in India? What was the impact of such systems in today’s scenario?

Ans: Lord Cornwallis instituted the Zamindari System in India with the Permanent Settlement Act in 1793. It was first introduced in the Bengal, Bihar, Orissa, and Varanasi provinces of colonial India. The zamindars were recognised as landowners as long as they paid the East India Company’s revenue on time. The zamindars, who were seen as India’s answer to the British nobility, had existed since the post-Mauryan period and grew in prominence throughout the British period. They were found practically in every state, including Kashmir, Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, Rajasthan and Gujarat, as well as Madhya Pradesh, Chhattisgarh, Karnataka, Hyderabad and Kerala. However, over the ages, the land ownership structure had changed. The land was separated into Jagirs and allotted to Jagirdars during the reign of the king. These Jagirdars divided the land they had received and distributed it to subordinate Zamindars. Zamindars forced peasants to cultivate the land in exchange for a portion of their earnings as a levy. The British established their first settlement in Bengal.

The three types of land tenure system adopted by the British are as follows:

a. Permanent Settlement/Zamindari System: Bengal, Bihar, Banaras, and the NWFP divisions accounted for roughly 19% of the total area during British rule.

b. Mahalwari System: During British rule, the Mahalwari System covered 30% of the country, including important areas of the NWFP, central provinces, and Punjab. 

c. Ryotwari System: Assam, Bombay, and Madras Presidencies covered around 51% of the region under British rule.

The following are some of the impacts of the Land Revenue System:

1. These land settlements established a commercial economy and abolished traditional rights. There was an upsurge in money-lending activities as a result of the cash payments of revenue.

2. The land tenure system accentuated socioeconomic divisions. The wealthy had recourse to the courts to defend their assets, whilst the impoverished did not.

3. The British land revenue system in India rattled the stability of Indian communities where agriculture and allied activities provided the majority of income. If a crop failed in any given year, they got miserable.

4. Peasants were forced to produce commercial crops, causing them to pay higher rates for food grains and lower prices for cash crops.

5. As a result, a substantial number of estates were put up for auction to settle revenue arrears. Many blamed it on the tenant farmers’ “stupidity and rascality” in not paying their rents.

Rents were at an all-time high, and it was no surprise. This may be seen in the fact that revenue in 1793 was set at 90% of the rental; by the end of the nineteenth century, rents had climbed to the point that income was just 28% of the rental. This is a measure of the Zamindars’ wealth as well as the unfairness meted out to other portions of India where assessments were significantly higher.

Q23. Enumerate the reasons for the poor growth and productivity of the agricultural sector in the colonial period.

or

How were the conditions of peasants during British rule?

or

What was the impact of British rule on the agriculture of India?

Ans: The plight of Indian peasants deteriorated steadily under British rule. The Englishmen implemented several land revenue schemes after obtaining the diwani of Bihar, Bengal, and Orissa. The agriculture sector dominated the Indian economy both pre-colonial and during the colonial period. The agriculture industry flourished as well after the British invasion. Previously, India used to export completed commodities and import raw materials. India became a net importer of completed goods and a net exporter of raw materials, primarily to Britain, following changes in agricultural laws that urged farmers to plant specific crops. There was a global agricultural catastrophe following World War I. The British Era is also recognised as a period of agricultural commercial transformation. Cash transactions largely superseded the barter system as the medium of exchange. The main motivation for agricultural commercialization was that India had been relegated to a provider of raw materials and food grains to the United Kingdom, as well as an importer of British manufactured goods. Many cash crops were introduced and spread during this time period, including indigo, cotton, jute, tea, and tobacco.

The impact of British rule on Indian agriculture:

  • The British introduced a new class of landowners known as Zamindars, who viewed land as their personal property and sought to maximise monetary gains from it.
  • Agriculture production was no longer just for the benefit of the hamlet, and much of it was sold at the market.
  • The cultivators, who were the actual land tillers, were merely tenants with no rights who might be expelled by landlords.
  • The fanner was frequently severely in debt, putting him in the hands of moneylenders who eventually gained control of the land and its harvest.
  • In England, farmers were forced to grow cash crops in order to feed the industries. It undermined the village’s self-sufficiency.
  • The new revenue arrangements resulted in peasant indebtedness and agricultural commercialization.
  • As a result, there was widespread poverty and an issue of landlessness.

The money-lender cum merchant was aided in exploiting the grower by the expanding commercialization. The peasants were required to sell their produce soon after harvest, at whatever price they could get, in order to satisfy the demands of the government, money-lenders and the landlords. The growth in population pressure on agriculture, which disproportionately affected peasants, was added to the previous issues. The goal of agricultural activities switched from self-sufficiency to commercialization, with the goal of increasing colonial revenues. As a result, cash crop yields increased, but this did not benefit farmers in any manner.

Q24. How was the Indian economy before the advent of British colonial rule in India?

or

What was the condition of India before the Britishers?

or

What were the real conditions of India before the British arrived?

Ans: India was ruled by the British for more than a century. The British acquired the Empire section by section in the light of the conditions prevailing in India prior to the arrival of the British. Weak central political power, competition with European rivals, military forces, and Mughal negligence were the significant reasons that prompted the colonization.  In spite of the fact that the British had no political power in India prior to their entry, it took more than two hundred years for British political power to emerge in India. The conditions that existed before to the entrance of the British caused the colonisation of India.

Let us now consider the following points in relation to pre-colonial India:

1) Political: At the time, caste was the most important factor, and political power was concentrated in the hands of the upper castes. Village political leaders were Thakurs and Patels. 

2) Economic: The majority of the time, they were exchanging products or services with one another. Gold was also significant at the time. Agriculture and related businesses were the mainstays of the economy.

3) Social: The social situation was the worst it had ever been, with ‘untouchability’ and caste discrimination at an all-time high. Women were not allowed to participate in social, political, or economic decisions. Only Brahmin men were permitted to attend school, and even Brahmin women were not permitted to attend.

4) Administration: It was well-managed from an administrative standpoint. There were three administrative levels. The village was the smallest autonomous administrative unit. The judiciary was not good; it was frequently skewed by caste, relative, and gender. 

5) Military: The majority of it was modelled after the Mughal army. Cavalry played a crucial role in the military. It was methodical and effective.

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NCERT MOST IMPORTANT QUESTIONS CLASS – 11 | Statistics for Economics IMPORTANT QUESTIONS | CHAPTER –1 Introduction| EDUGROWN |

NCERT Most important question:

Q1. Make a list of activities that constitute the ordinary business of life. Are these economic activities?

Answer

The activities that constitute the ordinary business of life are:
→ Buying of goods and services.
→ Rendering services to a company by employees and workers.
→ Selling of goods and services.
Yes, the above mentioned activities are regarded as economic activities as it involve the exchange of money to earn livelihood.

Q2. ‘The Government and policy makers use statistical data to formulate suitable policies of economic development’. Illustrate with two examples.
Answer
The statistical data is important for Government and policy makers to formulate suitable policies of economic development. It not only helps in analysing and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies accordingly. It is clear from examples –
(i) It can be ascertained easily by using statistical techniques whether the policy of family planning is effective in checking the problem of rapidly growing population.
(ii)  In preparing annual government budget, previous data of government expenditures and government revenues are taken into consideration for estimating the allocation of funds among various projects.

Q3. “You have unlimited wants and limited resources to satisfy them.” Explain by giving two examples.
Answer

Every individual have unlimited wants but the resources for satisfying the wants are limited. Scarcity is the root of all economic problems. Had there been no scarcity, there would have been no economic problem. This can be understood by examples -(i) A children pocket money is a limited so he/she have to choose only those things that you want the most. You can’t purchase almost all the things you wants.
(ii) A land available should be put in use either in agricultural or industrial. We can’t use same land for both activities.

Q4. How will you choose the wants to be satisfied?

Answer

Any individual fulfills his/her wants according to his/her needs, satisfactions and priority attached to different wants. Moreover, the choice of want also depends on the need of the hour and availability of the goods and also on the availability of means (money) to purchase that want.

Q5. What are your reasons for studying Economics?

Answer

The reasons for studying economics are:

→ To study the Theory of consumption: We want to know how the consumer decides, given his income and many alternative goods to choose from, what to buy when he knows the prices.

→ To study the Theory of Production: We also want to know how the producer, similarly, chooses what to produce for the market when he knows the costs and prices.

→ To study the Theory of Distribution: We want to know how the national income or the total income arising from what has been produced in the country is distributed through wages (and salaries), profits and interest.

→ The study of economics also helps us to understand and analyse the root cause of basic problems faced by an economy like, poverty, unemployment, income disparity, etc. and helps to take various corrective measures.

Q6. Statistical methods are no substitute for common sense. Comment.

Answer
This is true that Statistical methods are no substitute for common sense. Statistical data should not be believed blindly as it can be misinterpreted or misused. The statistical data may involve personal bias or may undergone manipulations. Also, statistical data and methods fail to reveal the errors committed by an investigator while surveying and collecting data. This can be understood by a story.
It is said that a family of four persons (husband, wife and two children) once set out to cross a river. The father knew the average depth of the river. So he calculated the average height of his family members. Since the average height of his family members was greater than the average depth of the river, he thought they could cross safely. Consequently some members of the family (children) drowned while crossing the river. Thus, the common sense must be used while applying statistical methods.

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