Yearly Archives: 2022

Short Answer Type Questions:

Q1.How does the Human Development Index ranks the countries?
Answer:
The Human Development Index ranks the countries based on their performance in the key areas of health, education and access to resources. These ranking are based on a score between 0 to 1, that a country earns from it record in the key areas of human development. Each of these dimensions is given a weightage of 1 / 3. The HDI is the sum total of the weights assigned to all these dimensions. The closer a score is to 1, the greater is the level of human development.

Q2.What are the aspects of human development?
Answer:
Leading a long and healthy life, being able to gain knowledge and having enough means to be able to live a decent life are the most important aspects of human development. Therefore, access to resources, health and education are the key areas in human development.

Q3.Why are some people incapable of making the basic choices?
Answer:
Very often, people do not have the capability and freedom to make even basic choices. This may be due to their inability to acquire knowledge, their material poverty, social discrimination, inefficiency of institutions and other reasons. This prevents them from leading healthy lives being able to get educated or to have the means to live a decent life. Building people’s capabilities in the areas of health, education and access to resources is therefore, important in enlarging their choices. If people do not have capabilities in these areas, their choices also get limited. For example, an uneducated child cannot make the choice to be a doctor because her choice has got limited by her lack of education. Similarly, very often poor people cannot choose to take medical treatment for disease because their choice is limited by their lack of resources.

Q4.With examples show how the government expenditure on social sector is an indicator of human development in different area?
Answer:
The pattern of government expenditure on social sector is an important indicator of the level of human development in a particular region. The political environment of the country and the amount of freedom people have is also important. Countries with high levels of human development invest more in the social sectors and are generally free from political turmoil and instability. Distribution of the country’s resources is also far more equitable.

On the other hand, places with low levels of human development tend to spend more on defense rather than social sectors. This shows that these countries tend to be located in areas of political instability and have not been able to initiate accelerated economic development.

Long Answer Type Questions:

Q1.Compare the social-economic conditions of the people in the countries with different human development levels.
Answer:
High level of human development group has 53 countries. Providing education and healthcare is an important government priority. Countries with higher human development are those where a lot of investment in the social sector has taken place. Altogether, a higher investment in people and good governance has set this group of countries apart from the others. Many of these countries have been the former imperial powers. The degree of social diversity in these countries is not very high. Many of the countries with a high human development score are located in Europe and represent the industrialized western world. Yet there are striking numbers of non-European countries also who have made it to this list.

Countries with medium levels of human development form the largest group. There are 42 countries in the medium level of human development. Most of these are countries which have emerged in the period after the Second World War. Some countries from this group were former colonies while many others have emerged after the break up of the erstwhile Soviet Union in 1990. Many of these countries have been rapidly improving their human development score by adopting more people-oriented policies and reducing social discrimination. Most of these countries have a much higher social diversity than the countries with higher human development scores. Many in this group have faced political instability and social uprisings at some point of time in their recent history.

As many as 43 countries record low levels of human development. A large proportion of these are small countries which have been going through political turmoil and social instability in the form of civil war, famine or a high incidence of diseases. There is an urgent need to address the human development requirements of this group through well thought out policies.

Q2.Explain the four pillars of human development.
Answer:
The idea of human development is supported by the concepts of equity, sustainability, productivity and empowerment.
Equity refers to making equal access to opportunities available to everybody. The opportunities available to, people must be equal irrespective of their gender, race, income and in the Indian case, caste. Yet this is veiy often not the case and happens in almost every society. For example, in any country, it is interesting to see which group the most of the school dropouts belong to. In India, a large number of women and persons belonging to socially and economically backward groups drop out of school. This shows how the choices of these groups get limited by not having access to knowledge.
Sustainability means continuity in the availability of opportunities. To have sustainable human development, each generation must have the same opportunities. All environmental, financial and human resources must be used keeping in mind the future. Misuse of any of these resources will lead to fewer opportunities for future generations.

A good example is about the importance of sending girls to school. If a community does not stress the importance of sending its girl children to school, many opportunities will be lost to these young women when they grow up. Their career choices will be severely curtailed and this would affect other aspects of their lives. So each generation must ensure the availability of choices and opportunities to its future generations.
Productivity means human labour productivity or productivity in terms of human work. Such productivity must be constantly enriched by building capabilities in people. Ultimately, it is people who are the real wealth of nations. Therefore, efforts to increase their knowledge, or provide better health facilities ultimately leads to better work efficiency.

Empowerment means to have the power to make choices. Such power comes from increasing freedom and capability. Good governance and people-oriented policies are required to empower people. The empowerment of socially and economically disadvantaged groups is of special importance.

Q3.What are the different approaches/ ways of looking at the problem of human development?
Answer:
Some of the important approaches of looking at human development are:
(a) Income Approach: This is one of the oldest approaches to human development. Human development is seen as being linked to income. The idea is that the level of income reflects the level of freedom an individual enjoys. Higher the level of income, the higher is the level of human development.
(b) Welfare Approach: This approach looks at human beings as beneficiaries or targets of all development activities. The approach argues for higher government expenditure on education, health, social secondary and amenities. People are not participants in development but only passive recipients. The government is responsible for increasing levels of human development by maximising expenditure on welfare.
(c) Basic Needs Approach: This approach was initially proposed by the International Labour Organisation (ILO). Six basic needs i.ehealth, education, food, water supply, sanitation, and housing were identified. The question of human choices is ignored and the emphasis is on the provision of basic needs of defined sections.
d) Capability Approach: This approach is associated with Prof. Amartya Sen. Building human capabilities in the areas of health, education and access to resources is the key to increasing human development.

Q4.“The Human Poverty index is more revealing than the Human Development Index”. Explain with examples,
Answer:
The human development index measures attainments in human development. It reflects what has been achieved in the key areas of human development. Yet it is not the most , reliable measure. This is because it does not say anything about the distribution. The human poverty index is related to the human development index. This , index measures the shortfall in human development. It is a non-income measure. The probability of not surviving till the age of 40, the adult illiteracy rate, the number of people who do not have access to clean water, and the number of small children who are underweight are all taken into account to show the shortfall in human development in any region. Often the human poverty index is more revealing than the human development index.
Looking at both these measures of human development together gives an accurate picture of the human development situation in a country.

The ways to measure human development are constantly being refined and newer ways of capturing different elements of human development are being researched. Researchers have found links between the level of corruption or political freedom in a particular region. There is also a discussion regarding a political freedom index and, a listing of the most corrupt countries.

Q5.Differentiate between growth and development.
Answer:

Growth	Development
(i)  Growth is quantitative and value neutral.	(i) development means a qualitative change which is always value positive. This means that development cannot take place unless there is an increment or addition to the existing condition.
(ii) It may have a positive (increase) or negative (decrease) sign.	(ii) it occurs when positive growth takes place in quality.

Q6.State the three differences between Human Development Index and Human Poverty Index.
Answer:

Human Development Index	Human Poverty Index
(i) The Human Development Index measures attainments in human development.	(i) The Human Poverty Index measures the shortfall in human development
(ii) Human Development Index (HDI) does not say anything about the distribution	(ii) The Human Poverty Index (HPI) measures the levels of distribution of education, health and resources.
(iii) HDI is an income measure	(iii) HPI is a non-income measure.

Short Answer Type Questions:

Q1.What does the literacy rate of a country indicate?
Answer:
Proportion of literate population of a country is an indicator of its socio¬economic development as it reveals the standard of living, social status of females, availability of educational facilities and policies of government. Level of economic development is both a cause and consequence of literacy.

Q2.Why is unfavorable female sex ratio found in India and other South Asian countries?
Answer:
In India and South Asian countries, female sex ratio is low due to:

• Widespread gender discrimination
• High mortality rate of female child during birth.
• Lower social-economic status of women.
• High female infant mortality due to negligence and lack of medical facilities.
• Preference to male child which results in high female foeticide and female infanticide.
• Domestic violence against women.

Q3.What do you mean by natural advantage and social disadvantage?
Answer:
Females have a biological advantage over males as they tend to be more resilient than males. This is called Natural Advantage. Social disadvantage is that women are not preferred as a child in the society and people have a preference for a male child. The natural advantage is cancelled by the social disadvantage and discrimination against women.

Long Answer Type Questions:

Q1.How does sex ratio give important information about status of women in a country?
Answer:
In regions where gender discrimination is rampant, the sex ratio is bound to be unfavorable to women. Such areas are those where the practice of female foeticide, female infanticide and domestic violence against women are prevalent. One of the reasons could be lower social-economic status of women in these areas. You must remember that more women in the population does not mean they have a better status. It could be that the men might have migrated to other areas for employment.

Q2.Describe the world pattern of sex ratio.
Answer:
On an average, the world population reflects a sex ratio of 102 males per 100 females. The highest sex ratio in the world has been recorded in Latvia where there are 85 males per 100 females. In contrast, in Qatar there are 311 males per 100 females. The world pattern of sex ratio does not exhibit variations in the developed regions of the world. The sex ratio is favorable for females in 139 countries of the world and unfavorable for them in the remaining 72 countries listed by the United Nations. In general, Asia has a low sex ratio. Countries like China, India, Saudi Arabia, Pakistan, Afghanistan have a lower sex ratio.
On the other extreme is greater part of Europe (including Russia) where males are in minority. A deficit of males in the populations of many European countries is attributed to better status of women, and an excessive male-dominated out-migration to different parts of the world in the past.

Q3.How is occupational structure a good indicator of levels of economic development of a nation?
Answer:
The working population (i.e. women and men of the age group – 15 to 59) take part in various occupations ranging from agriculture, forestry, fishing, manufacturing construction, commercial transport, services, communication and other unclassified services. Agriculture, forestry, fishing and mining are classified as primary activities manufacturing as secondary, transport, communication and other services as tertiary and the jobs related to research and developing ideas as quaternary activities.

The proportion of working population engaged in these four sectors is a good indicator of the levels of economic development of a nation. This is because only a developed economy with industries and infrastructure can accommodate more workers in the secondary, tertiary and quaternary sector. If the economy is still in the primitive stages, then the proportion of people engaged in primary activities world be high as it involves extraction of natural resources.

Short Answer Type Questions:

Q1.What is population growth? What does population change indicate for an area?
Answer:
Population growth or population change refers to the change in the number of inhabitants of a territory during a specific period of time.
It is an important indicator of economic development and historical and cultural background of the region.

Q2.What are the components of population change?
Answer:
There are three components of population change: Births, deaths and migration. Population growth occurs not only by increasing birth rate but also due to decreasing death rate. Apart from these the population size is also affected by the movement of people from one place to another in pursuit of better living i.e. migration.

Q3.Distinguish between place of origin and place of destination.
Answer:
Migration may be explained as a spontaneous effort to achieve a better balance between resources and population. When people move from one place to another, the place they move from is called the place of origin and the place they move to is called the place of destination.

Q4.How did science and technology help in population growth?
Answer:
Steam engine replaced human and animal energy and also provided mechanized energy from other sources and helped in increasing agricultural and industrial production. Improvement in medical facilities, inoculation against epidemics and sanitation helped in the decline of death rate.

Q5.What are the impacts of population change?
Answer:
A small increase is beneficial for a growing economy. But growth beyond the carrying capacity of land create problems. Resource depletion is the most serious of all the problems.Population decline also indicate that the resources are insufficient to support the population of an area which it had done earlier.

Q6.What was Thomas Malthus’s theory?
Answer:
Thomas Malthus in his theory (1793) stated that the number of people would increase faster than the food supply. Any further increase would result in population crash caused by disease, famine, and war. Preventive checks are better than physical checks. For future sustainability world population need to be controlled.

Q7.Which areas of the world have high density of population?
Answer:
Fertile plains with favorable climate and highly industrialized and urbanized areas are densely populated. There are four areas where density is more than 200 persons per sq. km. They are:

• East Asia (China, Japan, Korea, and Taiwan).
• South and .South-east Asia (India, Indonesia, Bangladesh and Pakistan).
• North-West Europe (UK, France and Germany).
• The Northeastern Coast of North America.

Long Answer Type Questions:

Q1.What is the trend in growth of population over the years in the world?
Answer:
The world population attained its present strength over centuries. It grew very slowly in the early periods. About 8000 – 10000 years ago, after the introduction of agriculture the size of population was around 8 million.

In the 1st centuries it was below 300 million. The 16th and 17th centuries set the stage for growth of population with expanding trade. The 2nd most significant cultural change that impacted the growth of population came around the 1750 in the dawn of ‘Industrial Revolution’ with approx 550 million population. It exploded after the industrial revolution in the 18th century. The 3rd major cultural and technological change that influenced the population growth came in the 20th century through ‘Medical Revolution’ – which drastically brought down the ‘death rate’ with the introduction of several life saving drugs and improved medical facilities through better connectivity and paved the path for rapid population growth.

Q2.What is population change? What is the Spatial Rate of population change?
Answer:
Difference in the birth, death and migration of an area between two points of time leads to the size of population thus resulting in change. Population growth is low in developed countries than the developing countries. Population growth and economic developments are negatively correlated. In a developing country with a large population, even a small annual growth rate will lead to a huge change in population. Even if the growth rate continues to decline, the total population grows each year.

Presently the population of the world is 7.033 billion and is increasing at an alarming rate with more than 8 crores being added every year. Though the developed nations have stabilized their growth, the developing nations are yet to reach that target. The population in the developing nations is bound to increase in the coming years as the proportion of their youthful population is high.

Q3.What is Demographic Transition? Explain the stages of demographic transition theory with examples.
Answer:
The Demographic Transition Theory gives us the relationship between the level of economic development of a country and its demographic characteristics. It mentions the transition of a society from a phase of high fertility and mortality to a phase where both come down to low and the countries move from primitive agricultural, illiterate and rural economy to a modern industrial, literate and urban state. Initially, there were three stages of the theory—Underdeveloped stage, Developing stage and Developed stage.

Stage-1: Stage of slow population growth. This stage was marked by both high birth rate and high death rates. So population growth rate was very low. Agriculture oriented activities depended on the vagaries of nature leading to low productivity. Society was highly illiterate with poor technology. Large families with high birth rates were the norms as they had to compensate the high death rate. About a couple of centuries back all the economies were at this stage of demographic transition.

Stage-2: Stage of the beginning of Industrial Revolution. With betterment economic conditions and living standards, this stage started with improvement of medical facilities, sanitation and as a result death rate went down but birth rate remained high initially. This gave rise to a sudden increase in population which is common in a developing economy.

Though both of them were falling, the rate of fall in death rate was much faster than that of birth rate – creating a wide gap between them – which in turn gave rise to sharp increase in population, often termed as population explosion triggered by the better medical facilities and food supply. Stage-3: Stage of late Industrial Revolution and urban state.

Typically characterized by low and stable growth rate of population. This stage is marked with a decline in birth rate along with a steady decrease in death rate. The mortality rate gets very low and stabilizes. This Demographic Transition theory clearly shows how an economy changes from an agrarian, illiterate rural state with high birth rate, and Death rate to an industrial, literate and urban state with low Birth rate and Death rate through technological innovations and medical improverhents.

Q4.What are the repercussions of population increase? What are the population control measures?
Answer:
A small increase in population is desirable in a growing economy but uncontrolled population growth leads to numerous problems mainly on the limited resources.

Thomas Malthus in his theory (1793) stated that the number of people would increase faster than the food supply. Any further increase would result in population crash caused by disease, famine and war. Preventive checks are better than physical checks. For future sustainability world population need to be controlled.

Access to family planning measures is an important factor in controlling population. Propaganda, creating awareness, free availability of contraceptives, tax disincentives for large families are some of the measures which can be adopted for controlling population.

Short Answer Type Questions:

Q1.What do you mean by ‘Dualism in Geography?
Answer:
The teaching and learning of Geography has been a matter of debate amongst geographers. Some examples are:

• Whether geographical phenomena be theoretically interpreted or through historic-institutional approach;
• Whether subject matter be organised and approach to study and teach geography should be regional or systematic;
• Whether geography as a discipline should be a law making/theorising or descriptive?

Q2.State some examples of metaphors used to describe the physical and human phenomena.
Answer:
Some examples of metaphors used to describe the physical and human phenomena are as follows:

• “Face’ of the earth.
• ‘Eye’ of the storm.
• Regions, villages, towns have been described as ‘organisms’.
• Networks of roads, railways and water¬ways are described as “arteries of circulation”.
• “Mouth’ of the river.
• ‘Snout’ (nose) of the glacier.
• “Neck’ of the isthmus.
• “Profile’ of the soil.

Q3.When and how did Human Geography begin? Explain.
Answer:
Human Geography may be said to have originated since man has started interacting with his environment. It has its roots deep in history. Therefore, the concerns of human geography have a long temporal continuum though approaches to articulate them have changed over time. This dynamism and changes in articulation are indicator of vibrant nature of the discipline.

In the beginning, the interaction between various societies was negligible. Therefore knowledge about each other was also limited. Travelers and explorers used to gather information before a journey and navigational skills were underdeveloped. In late 15th century, Europe witnessed attempts of explorations and the myths and mysteries about countries and people started to open up.

In the colonial period, these attempts increased with an objective of getting access to resources and to obtain inventorised information. Through all this we get to know the sequential information about the development of human geography and to understand that the development of this discipline has been a steady process.

Q4.Make a list of elements that human beings have created through their activities on the stage provided by physical environment.
Answer:
Man creates many elements through his activities on the stage provided by physical environment with the help of technology. Houses, villages, cities, farms, ports, items of our daily use and all others So elements of material culture have been created by man using the resources provided by physical environment.

Q5.How do human activities help to create cultural landscape?
Answer:
On the basis of attained knowledge, technology and industries, man has been able to develop cultural landscape. The imprints of human activities are available everywhere.

For example; health resorts on highlands have been used as recreation places, huge urban sprawls, fields, orchards and pastures in plains and rolling hills have added to beauty, ports on the coasts, oceanic routes on the oceanic surface and satellites in the space have enabled man to touch the heights of the sky. This was coined the term “Possibilism.’.

Q6.“There is no free run without accidents.” Explain.
Answer:
In this statement, the thought of Possibilism in which man was taken as free, uncontrolled and master of unlimited powers has been criticized because as a consequence of free run of developed economies many problems are being faced today like green house effect, ozone layer depletion, global warming, receding glaciers, degrading lands, problem of pollution and incurable diseases.

Long Answer Type Question:

Q1.Describe the fields and sub-fields of Geography and its inter-relationship with other fields.
Answer:
Nature of Human Geography is inter-disciplinary. In order to understand and describe the human elements found on the earth, human geography has established strong bond with other social sciences and their helping subjects. With the expansion of knowledge, new subjects keep on developing. These are studied with humanistic approach but because they are not free from geographical and environmental effects, they become subject matter of human geography. Fields under Human Geography include: Social Geography, Urban Geography, Political Geography, Population Geography, Settlement Geography and Economic Geography.

Sub-fields of Social Geography are: Behavioral Geography, Geography of Social Well-being, Geography of Leisure, Cultural Geography, Gender Geography, Historical Geography and Medical Geography.

Sub-fields of Political Geography are Electoral Geography and Military Geography. Sub-fields of Economic Geography are: Geography of Resources, Geography of Agriculture, Geography of Tourism, Geography of Industries, Geography of Marketing and Geography of International Trade.

Other than this, Sociology, Psychology, Welfare Economics, Demographic Studies, History, Epidemiology, Anthropology, Urban Studies and Planning, Political Science, Psephology, Military Science, Demography, Urban or Rural Planning, Agricultural Sciences, Industrial Economics, Business Studies, Commerce, Tourism 6s Travel Management and International Trade are such disciplines which study human activities and behavior. As the scope of these disciplines is expanding, it is also leading to increase in the scope of Human Geography.

Q2.How did man develop and expand proper technology?
Answer:
Human beings were able to develop proper technology using his knowledge and intelligence. It has taken man a long time to reach at the present level of technology. In primitive age when the level of technology was very low man was bound to follow the dictates of nature. In those times man was a slave of nature, scared of its powerful force and used to worship nature to make it happy. In these conditions the state of cultural development was also primitive.

However, the process was gradual but man developed technology and it is also to be noted that man has been able to utilize this technology only after understanding the various laws of nature. For example; understanding of laws of friction gave birth to many inventions. Similarly after understanding secrets of DNA and laws of genetics, man has overcome many diseases and aeroplanes could be invented only after understanding the laws of aerodynamics. Today the level of technology is touching the heights of sky through which man seems to get free from the natural forces. Earthquake, cyclones, landslides, volcanoes and other natural disasters keep reminding man that he is still a slave to nature.

It implies that man can’t be completely free from natural forces but with the development of technology man has become free from nature and this freedom can be expanded further. Man needs to follow Stop and Go approach. It means possibilities can be created within the limits which do not damage the environment and there is no free run without accidents.

Q3.Differentiate between Physical Environment and Cultural Environment.
Answer:

Physical Environment	Cultural Environment
Physical environment includes all those elements which nature has made available as free gifts for human development. For example, land forms, soils, climate, water, natural flora and fauna, etc.	It includes all those physical-cultural elements which have been developed by man through his gained knowledge and technology. For example, houses, villages, towns, network of roads and railways, modes of transportation, industrial units, fields, hospitals, sports complex, means of entertainment, markets, ports and goods of daily and special use.

Q4.Differentiate between Determinism and Possibilism.
Answer:

Determinism

Possibilism

According to this thought, man is a slave of nature. There is direct dependence of human beings on nature for resources and nature is taken as a powerful force, it is worshipped, revered and conserved. If man does not follow the dictates of nature, he has to bear with the aftermaths. Kont, Humbolt, Ritter and German Expert Ratzel and his student Ellen Churchill Semple advocated the philosophy of ‘Determinism.’

French geographers denied to accept determinism and considered man as master of his destiny. They claimed that man has the ability to change the nature completely with his will power. It means that everything is possible for man and it is called possibilism. French expert Lucian Febre and Paul Vidal de la Blache are considered as founder of possibilism.

Q5.Differentiate between Regional Geography and Systematic Geography.
Answer:

Regional Geography	Systematic Geography
Under this all the geographical elements of a region are studied as one unit. And one region is considered a different unit from another region or differentiated from another region only on the basis of these geographical differences. We need to understand this regional difference in geographical context.	Under this special geographical elements of a regional unit are studied and which are generally based on political units. Therefore, it is the individual study of a special geographical feature of a region.

Q6.Differentiate between Humanistic or Welfare School of Thought and Behavioral School of Thought.
Answer:

Welfare School of Thought

Behavioral School of Thought

Welfare School of Thought was mainly concerned with the different aspects of social well-being of the people. These included aspects such as housing, health and education. Geographers have developed welfare as a base to study geography. This thought was the result of rapid changes that happened after Second World War because this war gave birth to many human problems, therefore to solve these problems, welfare or humanistic thought has developed.

In 1950-60, on the basis of psychological researches through qualitative and other methods many humanitarian aspects like human race, caste and religion. Behavioural School of thought laid great emphasis on lived experience and the perception of space by social categories based on ethnicity, race and religion, etc.

Q7.Differentiate between Nomothetic and Ideographic.
Answer:

Nomothetic	Ideographic
Under this, the subject matter of geography is studied as per fixed principles. Before study, aims and objectives are determined then its laws are fixed. Attaining goals on the basis of these laws is the objective of a geographer.	Under this, the description of geographical elements is prepared and under this a geographer tries to understand which of the natural and geographical factors have affected interaction of human activities and to what extent.

In This Post we are  providing  CHAPTER 4 THE MARKET AS A SOCIAL INSTITUTION NCERT MOST IMPORTANT QUESTIONS for Class 12 SOCIOLOGY PART A which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON THE MARKET AS A SOCIAL INSTITUTION

Question 1.
What is Distribution?
Answer:
For a layman, the meaning of distribution is to take anything from one place to another and to sell that thing. But in economics, distribution is that process with which the actual and complete value of anything is distributed among those persons who have contributed to the production of that thing. Different persons and groups have their own specific contribution in the production of anything and they should be rewarded for that. In this way, the money or reward given to them is distributed. For example, rent to the owner of the land, labor to laborer, interest to the person who has invested money, tax to the government. All of them get a share in this form.

Question 2.
What do you mean by Capitalism?
Answer:
Capitalism is an economic system in which private property is of great importance. Production in capitalism is on large scale and we can see stiff competition among different capitalists. Capitalist tries to get more profit because of which he invests his money. This money and credit are of great importance in capitalism. The biggest feature of capitalism is the exploitation of laborers.

Question 3.
Write characteristics of Capitalism.
Answer:

1. Production in capitalism is on large scale.
2. The base of capitalism is private property.
3. There is a lot of competition among different classes in capitalism.
4. Capitalist invests his money to get more profit.
5. The exploitation of laborers is there in capitalism.
6. Money and credit are of great importance in a capitalist economy.

Question 4.
In agrarian societies, periodic markets are a central feature of social and economic organizations. Explain. (C.B.S.E. 2012)
Answer:
In most agrarian or peasant societies around the world, periodic markets are a central feature of social and economic organization. Weakly markets bring together people from surrounding villages, who come to sell their agricultural or other products and to buy manufactured goods and other items that are not available in their villages.

They attract traders from outside the local area, as well as moneylenders, entertainers, astrologers, and a host of other specialists offering their services and wares. In rural India, there are also specialized markets that come up at less frequent intervals, for example, cattle markets. These periodic markets link different regional and local economies together and link them to the wider national economy and to towns and metropolitan centers.

Question 5.
What is Globalisation? Explain briefly.
Answer:
The process of Globalisation is a wide economic process that can be seen in all societies and countries. Different countries have free trade and economic relations in this process. Actually, not even a single country is completely self-dependent to fulfill its need. It has to depend upon other countries to fulfill the basic needs of its people. With this, even other countries are also dependent upon each other to fulfill their needs.

Because of this mutual dependence, mutual relations were increased in different countries and one idea came into being to increase relations of free trade in each other’s country. This idea of increasing economic relations and free trade is given the name of Globalisation. The concept of Globalisation gave rise to the concept of liberalization in which different countries are opening their doors for other countries to have duty-free trade relations among them.

The concept of Globalisation is not very old. It is as old as 15-20 years which has taken the whole world in its fold. That is why the world is shrinking these days. We can get the foreign-made goods while living in our small town or city. We can see any sector of the country. For example, many foreign cars like Mercedes, General Motors, Rolls Royce, Ferrari, Honda, Mitsubishi, Hyundai, Skoda, Toyota, etc. came to India, which were not available in the decade of 1980s.

It is happening because of Globalisation and liberalization that the market of our country is opened for foreign companies. In this way, a lot of foreign-made goods and Indian goods are available in our country. It is Globalisation in which different countries are opening their doors for foreign companies and are encouraging free trade. These days the world is shrinking and now it is just like a small village or town. The government is increasing Foreign Direct Investments (FDI) in every sector. This is called Globalisation.

Question 6.
Explain briefly the different characteristics of Globalisation.
Answer:
1. World Trade. The first and necessary condition of Globalisation is world trade. It is the main base of trade in the world. It unites the people of different sectors living in different countries and gives them business. For example, India has a lot of surplus tea. That is why different countries of the world are importing tea from India. In the same way, almost all the countries of the world depend upon Arabian countries for crude oil. In this way, with the exchange of goods and because of trade they are coming closer to each other. People of India depend upon Arabian people and they depend upon us. World Trade and Globalisation has been increased.

2. Economic globalization: Globalisation has established a new economy in the world. Now the economy of one country depends upon the economy of another country. That is why the concept of the world economy came into being. Different countries unite with each other because of the economy and the exchange of cultural traits starts between them. Investment, exchange of division of labor, specialization, production, consumption, etc. have an important role in this business. Economic globalization has encouraged capitalism. Now, people are thinking even for international economy and structure.

3. Globalisation of market: Globalisation has increased the market to a great extent. Now, globalization of the market is not being done only on the basis of production but is also on the basis of consumption. Companies are producing things while keeping in mind the market of other countries or international markets. Even some countries depend on others for consumption. In this way, production and consumption depend upon the foreign market. With this, the business with other countries increases and foreign exchange comes into the country. In this way, the market depends upon foreign countries. We can find a number of foreign-made goods in our market. Even the eatables are available in markets. In this way, the market is expanded with globalization.

4. Division of labor: Globalisation has encouraged the division of labor. Now, people are doing many courses to go to a foreign country. For example, people are doing a number of computer courses so that they could earn money in a foreign country. We can see many types of advertisements in newspapers that specialists in different countries are required. Division of labor is encouraged because specialists are in great demand in different countries of the wound. It is the feature of globalization that has encouraged the division of labor.

5. Migration of laborers to other countries: Another feature of globalization is the migration of workers from one country to another country in search of work. Generally, people, specialists in different sectors from South Asian countries are going to western countries for work because they think that they can earn more in western countries. Workers of different countries are working in foreign lands and are earning money. In this way because of globalization people of different countries have been able to migrate to other countries.

6. World economy: Another feature of globalization is the encouragement of the world economy. Now the economy of one country is not restricted only to that country because its economy is affected by the economies of other countries. With the increase in trade, economies depend upon each other. In this way because of inter-dependence, the world economy and world trade have been increased.

Question 7.
What is the impact of Globalisation on the Indian Economy?
Answer:
1. Increase of the Indian Share in world export: With the process of globalization, the Indian share in world export has been increased. Indian goods and services in the decade of 1990-2000 have been increased by 125%. In 1990, the Indian share in the world’s export of goods and services was 0.55% which was increased up to 0.75% in 1999.

2. Foreign investment in India: Foreign direct investment is an important feature of globalization because foreign investment increases the capacity of production of any economy. Foreign investment in India is continuously increasing. From 1995-96 up to 2000-01, it has been increased by 53% and during this time 500 crores have been invested in India annually.

3. Foreign Exchange Reserve: Foreign exchange is necessary for import. In June 1991, the foreign exchange reserve in India was 1 Billion Dollars which was enough only to fulfill the needs of only two weeks of the country. After this India adopted new economic policies. Globalization and liberalization were encouraged because of which foreign exchange reserve was increased very quickly. Now, the foreign exchange reserve is near 350 Billion Dollars. ‘

4. Growth of Gross Domestic Product: Because of globalization the gross domestic product (GDP) of the country has been increased. In 1980, it was 5.63% which was increased to 5.80% in 1990. Now, it is around 7%.

5. Increase in Unemployment: Because of globalization, unemployment in India has been increased. During the decade of 1990-2000, the economic problems came in Mexico, South Korea, Thailand, Singapur, Indonesia, Malasia and it was because of globalization.

That is why millions of people lost their jobs and they had to live below the poverty line. At the start of the 1990’s the rate of unemployment was 6% which was 3.8% in 2011.

6. Impact on Agriculture: The share of agriculture and its related activities in the Gross Domestic Product of the country is 14%. But it is 2% in the U.S.A., 55% in Japan and France. If we look at the labor force then India’s 69% labor force is related to agricultural functions but the labor force in the agricultural sector in U.S.A. and U.K. is only 2.6%. In the near future, it is necessary for India to open its market for world companies in the agricultural sector which is in agreement with W.T.O.

7. Educational and technical development: Globalisation and liberalization have exerted a great impact on the education and technology sector which has seen a revolution. The world has been shrinking due to means of transport and communication. Internet and computer have brought a revolution in this sector.

8. Change in the form of Classes: Globalisation has changed the form of different classes. In the 20th century, only three main classes i.e., higher class, middle class, and lower class were there but now the number of classes has been increased.

9. Privatization: One of the good effects of globalization can be seen in the form of Privatisation. Many public sector undertakings (P.S.U.’S) like V.S.N.L., I.P.C.L., NALCO are now in the hands of private parties because of which they are earning huge profits.

10. Development of Industries. Foreign direct investment is very helpful in achieving a higher rate of economic development. It gives not the only advantage to industries but consumers are getting products of better quality and better technology. It gives motivation to Indian industries to compete with foreign companies in the international market.

Thus, the process of globalization is very good in bringing social change and giving good quality products to consumers in India.

Question 8.
What is meant by liberalization? Which problems occurred due to liberalization?
Answer:
Meaning of liberalization. Lifting up of unnecessary restrictions of the controlled economy is liberalization. Lifting up unnecessary restrictions from businesses and industries, so that economy could become more competitive and open, is called liberalization. liberalization is a process in which different countries of the world are motivated to provide such facilities with which free business and trade could develop among them.

One of its aims is to reach the objective of better international economic relations. This process encourages wide business and economic relations between different countries of the world. This policy increases the working capacity of the economy and private enterprises have the ability to give better results than public enterprises.

Problems of liberalization. This process brought up many problems in India which are given below:
1. Increase in Unemployment. The unemployment rate in India was 6% in 1990, which became 7% in 1999 and it was 3.8% in 2011. It is only the result of liberalization. 36% of the total population of India still lives below the poverty line because they lack basic amenities. Domestic industries are directly related to employment because they give a lot of employment to a number of people.

If industries will increase then more and more people will get employment. But if local industries will be destroyed then not only unemployment but poverty will also increase. The process of liberalization is going on for more than is the year in our country. Large industries are coming forward but domestic and cottage industries are destroyed by these larger industries. It has increased unemployment.

2. Evil consequences of liberalization. Industries begin to throw out their employees from factories with this process. When the policy of liberalization was implemented then it was told that this process will solve all the problems of the country. But even after such a long time not much impact has been seen on our economy. 36% of the total Indian population still lives below the poverty line. Yet India got technical advantage through this but certain areas are there which have faced evil consequences of this process.

3. Increasing pressure of foreign debt. The first era of economic reforms was started in 1991 and went until 2001. The second era was started in 2001. During the second era, it was thought that the rate of economic growth of the country will increase but nothing happened. Steps on the way of economic progress and economic reforms became slower. The aim of economic growth was kept at 8% but it fluctuated all the time. The pressure of foreign debt is increasing. India has to pay 349.5 billion dollars of foreign debt in 2012 and that is why every Indian is under the debt of foreign countries. All this has happened because of the process of liberalization.

4. Decrease in Export and Increase in Import. Export of India has also been reduced by process of liberalization and also import has increased. Import as compared to 1991, was increased in 1996 and export was reduced. Its reason was that western things came into our country and the people started to use those things. That is why imports were increased and export was decreased. Balance of business was also destabilized. Increasing import has adversely affected local industries. Western things are durable and less expensive. That is the reason why local industries are adversely affected.

5. Reduction in Value of Rupee. The value of the rupee has been decreased to a great extent due to liberalization. The value of one dollar was Rs. 18 in 1991, it became Rs. 36 in 1996 and Rs. 47 in 2001. Now, it is around Rs. 67. It is all because of liberalization. The decline in the monetary value of a country led to an increase in inflation which is also not good for poor people. It might be profitable for developed countries but is disastrous for developing countries. In this way value of the rupee has been declining due to liberalization.

Question 9.
What do you know about capitalism? Write in detail.
Answer:
Capitalism is an economic system in which private property is of great importance. Capitalism does not its an advanced stage at once but it develops slowly. To see its development we have to study it from ancient societies.

In ancient societies, the system of exchange of goods was there. There was no concept of profit at that time. People were not collecting things for profit but were collecting for those days when those things will become unavailable. The business system was generally dependent upon the exchange of service and goods. No one was aware of economic factors like labor, investment, individual profit during those times.

In the middle ages, business and commerce developed a bit. Yet, in the beginning, the business was based on the system of exchange and gradually money became the medium of business. It has given a type of motivation to business and commerce because of which the importance of money, gold, silver, and coin was increased. Money was, yet, not the property, but was the symbol of property. It has a complete effect on the production forces and features. According to Simmer, the institution of money has affected all parts of life when it became systematic in modern western society.

It has given the freedom to owner and servant and also affects the things and services and buyers and sellers because with this formal relations came into being in both sides of the business. According to Simmer, money has brought a lot of changes in the philosophy of our life. It has made us practical because now we are measuring everything in terms of money. Social relationships and social contact have become informal and formal. Human relationships have become cold.

At the beginning of modem times, economic activities were regulated by governmental forces. In this, we can see the shadow of moving forward of European people under their monarchs. At this time economic activities were regulated by the political authority so that the king’s profit is increased and treasure should be filled. The country was running under the supervision of businessmen and the businessmen were engaged in earning money like an economic organization. Production forces were also regulated by business laws.

After this, the industrial revolution came, which changed the ways of production. Business policies were unsuccessful in doing the welfare of the people. For the production of more things policy of ‘Laissez Fairer was adopted. According to this policy, there will be no interference in economic matters. According to this, any person can see his individual interests, there was no pressure and burden on him. The state has stopped interfering in economic matters. According to Sumner, State should remove all the restrictions which were put on business and commerce and it should remove all the restrictions which were put on production, exchange, and accumulation of money. Adam Smith has given four concepts at this moment:

1. The policy of individual interest.
2. Policy of Laissez Fairer
3. Theory of competition, and
4. To see a profit.

These concepts have put a great effect on that particular time. Under the effect of these rules and because of the industrial revolution new system of property and ownership of production came into, being which was given the name of capitalism. Because of the industrial revolution, the domestic system of production was changed into the production in factories. In factories, every work has been divided into small parts and every laborer was doing small work. That is why production was increased.

With the passage of time, big industries came into being. Big owner corporations of these industries came into being. In this new system of production and exchange, owners of means of production were different individuals and they had no social responsibility. The property was completely private and it was totally free from the restrictions of state, religion, family, and other institutions. Owners of the factories were free to do anything. Their main aim was profit. They were not restricted to produce anything without profit. The way of production was profitable and the government had adopted the policy of no-interference and it helped the owners of means of production in this way.

Question 10.
What is meant by the Market? Explain the main features of the Market.
Answer:
In common everyday usage, the word Market may refer to particular markets such as the fruit market, the wholesale market, the vegetable market. It means we relate it with the economy. But it is also a social institution. Sociologists are of the view that markets are social institutions that are constructed in culturally specific ways. Markets are generally organized or controlled by particular social groups or classes and have specific relations to other institutions, social processes, and structures. From an economic point of view, only economic activities and institutions are included in markets. It means that only mutual exchange or contracts take place in the market which is based upon money.

In both Economics and Sociology, a market is understood to be an area over which any well-defined commodity is exchanged between buyers and sellers. Such commodities are considered to be of two kinds-goods and services. The total amount of a commodity produced and available for purchase is referred to as the supply of the commodity, while the total amount being sought for purchase is termed the demand.

(Features of Market)
The following are the main features of a Market:
1. Mutual exchange: First and most important feature of the market is a mutual exchange. In general, the market is based on mutual exchange. In this, either things are given for things, or things are given for money, or services are given for things. If mutual exchange would not be there would not have been a market.

2. Continuous process: The market is a continuously changing institution. We can observe any of the society like modern society, rural society, or tribal society. The market is available in all societies. If anyone wants to run the house then he is required to go to the market to buy things. It leads to regulation of the market as well.

3. Formal relations: Another feature of the market is that people have formal relations among them. Yet, people know very well about shopkeepers of the market but their mutual relations are limited to a certain extent. If they have good relations among them, even then they cannot exert a great impact on market rules. The shopkeeper will definitely take his profit. It hardly matters whether it is less or more. Relations in the market could be made between two strangers.

4. Medium: Medium of exchange is used according to market rules. This medium could be in any form like things, money, or services. The number of goods could be reduced or increased according to the value of the medium. Contracts are always based on the quantity of medium and mutual exchange that takes place according to this.

5. Relations based on a contract: Relations in the market are always based on the contract. These relations are always formal. Rules of a contract are applicable on all markets in one form or the other and everyone is bound to accept these rules. In modem industrial society, relations based on contract are in demand.

In This Post we are  providing  CHAPTER 5 PATTERNS OF SOCIAL INEQUALITY AND EXCLUSION NCERT MOST IMPORTANT QUESTIONS for Class 12 SOCIOLOGY PART A which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON PATTERNS OF SOCIAL INEQUALITY AND EXCLUSION

1. How is social inequality different from the inequality of individual?
Ans. Individual inequality refers to destructiveness and variations among individuals in their psychological and physical characteristics.
Social inequality refers to a social system where some people are getting opportunity to make use of the resources and others are not. Some people are at a higher level in terms of wealth, education, health and status while others are at the lowest level. Social inequality gets manifested in following forms:
(i) Social stratification (ii) Prejudices
(iii) Stereotypes (iv) Discrimination

2.What are some of the features of social stratification?
Ans. The key features of social stratification are
(i) Social stratification is a characteristics of society, not simply a function of individual differences.
It is society-wide system that unequally distributes social resources among categories of people.
For example: In the most technologically primitive societies-hunting and gathering societies, little was produced, so only rudimentary social stratification could exist.
In more technologically advanced societies, where people produce a surplus over and above their basic needs, however, social resources are unequally distributed to various social categories regardless of people’s innate individual abilities.
(ii) Social stratification persists over generations:
It is closely linked to the family and to the inheritance of social resources from one generation to the next. A person’s social position is ascribed, i.e., a child assumes the social position of its parents. Births dictate occupation e.g. a Dalit is likely to ‘ be confined to traditional occupation such as agricultural labours, scavenging or
leather work, with little chance of being able to get high paying white-collar or professional work.
The ascribed aspect of social inequality is reinforced by the practice of endogamy,
i.e., marriage is usually restricted to members of the same caste, ruling out the potential for breaking caste line through intercaste marriages.
(iii) Social stratification is supported by patterns of beliefs and ideology:
No system of social stratification is likely to persist over generations unless it is widely viewed as being either fair or inevitable. For example, Caste system is justified in terms of the opposition of purity and pollution, with Brahmans designated as the most superior and Dalits as the most inferior by virtue of their birth and occupation.
Not everyone, thinks of a system of inequality as legitimate. Typically, people with the greatest social privileges express the strongest support, while those who have experienced exploitation and humiliation of being at the bottom of the hierarchy are most likely to challenge it.

3.How would you distinguish prejudice from other kinds of opinion or belief?
Ans. Prejudice refers to pre-judgement, i.e., an opinion made in advance. Prejudice refers to pre-thought opinions or attitudes held by members of one group towards another.
Prejudice may be either positive or negative. A prejudiced person’s pre-thought views r are .generally based on hearsay rather than on direct evidence. This word is generally used for negative pre-judgements.
On the other hand, an opinion is a judgment about someone or something, not necessarily based on fact and knowledge.

4. What is social exclusion?
Ans. Social exclusion is the combined result of deprivation and discrimination that presents individual or groups from participating completely in the economic, social and political life of the society in which they live.Social exclusion is structural i.e., the outcome of social processes and institutions rather than individual action.
In this process, the individuals may cut off from total improvement in the broader society.

5. What is the relationship between caste and economic inequality today?
Ans. In the hierarchy of caste system each caste has a specific place and social status. There has been a close correlation between social or caste status and economic status. The high’ castes were almost invariably of high economic status. On the other hand, the “low’ caste were almost always of low economic status.
However, in the 19th Century the link between caste and occupation had become less , rigid consequently, the link between caste and economic status is not as rigid today as it used to be.At the macro line things have not changed much. The difference between the privileged a high economic status sections of society and disadvantaged (a low economic status) sections still persists

6. What is untouchability?
Ans. Untouchability is a social practice within the caste system in which members of the lowest castes are thought to be ritually impure to such a limit that they cause pollution by mere touch or even sight. Untouchable castes are at the bottom of the hierarchical system. These low castes are excluded from most social institutions.
It is an extreme and vicious aspect of the caste system. It uses stringent social and ritual sanctions against members of castes located at the bottom of the purity pollution scale. They are considered to be outside the caste hierarchy.

7. Describe some of the policies designed to address caste inequality.
Ans. At the state level, there are special programmes for scheduled tribes and scheduled castes.
Because of massive discrimination practised against them, special provisions have been made for them.
The OBCs have also been added to this special provisions.
The laws passed to end, prohibit and punish caste discrimination, especially untouchability are:
(i) Caste Disabilities Removal Act of 1850, disallowed the curtailment of rights of citizens due solely to change of religion or caste. It allowed entry of Dalit to government schools. .
(ii) Constitution Amendment (93rd Amendment) Act of 2005, for introducing reservation for OBCs in institutions of higher education.
(iii) Scheduled castes and scheduled tribes (Prevention of Atrocities) Act of 1989, to abolish untouchability (Article 17) and introduced reservation provisions.
(iv) 1989 Prevention of Atrocities Act revised and strengthened the legal provisions against Dalits and Adivasis

8.How are the Other Backward Castes different from die Dalits (or Scheduled Castes)?
Ans. Untouchability was ttie most visible and discriminatory form of social inequality. Despite this, there was a large group of castes which were of low status and were also subjected to varying levels of discrimination. The ex-untouchability communities their leaders have coined, another term, Dalit’, which is now the generally accepted term for referring to these groups. The term Dalit literally means ‘downtrodden’ and conveys the sense of an oppressed people.
However, the constitution of India recognises the probability what there may be groups other than SCs and STs who suffer from social advantages. These groups were described as “socially and educationally” backward classes or other backward classes.” The OBCs are neither part of the formed castes at the upper end of the caste hierarchy, nor the Dalits at the lower end. The OBCs are a much more diverse groups than the Dalits

9. What are the major issues of concern to adivasis today?
Ans. The tribes, were considered to be “people of the forest’ whose special habitat in the hilly of and forest regions made their economic, social and political attributes. At present, except the North-Eastern states, there are no areas of the country which are inhabited exclusively by tribal people.
The regions where tribal population are concentrated, their economic and social conditions are much more than those of non-tribals.
However, after independence Adivasi lands were acquired for new river and dam projects. Consequently, millions of Adivasis were displayed without any adequate compensation or rehabilitation.
The resources of Adivasis are being taken away in the name of *03110031 development’ and ‘economic growth’.
For example projects such as Sardar Sarovar Dam on the river Narmada and the Polavaram Dam on river Godavari would displace hundred of thousands of Adivasis. The policy of economic liberalisation is leaving Adivasis to greater destitution.

10. What are the major issues taken up by the women’s movement over its history?
Ans. Scholars and social reformers have shown that the inequalities between men and women are social rather than natural. The women’s question became prominent in the 19 th Century. Raja Rammohun Roy’s attempt to reform society, religion and status of women in Bengal. He undertook the campaign against “Sati” which was the first women’s issue to receive public attention.
Jyotiba Phule was from socially excluded caste and he attacked both caste and gender discrimination. He established the Satyashodhak Samaj with its primary emphasis on truth seeking. ”
Sir Syed Ahmed Khan made efforts to reform Muslim Society. He wanted girls to be educated, but within the precincts of their homes.
He stood for women’s education but sought for a curriculum that included instruction in religious principles, training in arts of housekeeping and handicrafts and rearing of children.
Tarabai Shinde a Maharashtrian housewife, wrote, Stree Purush Tulana as a protest against the double standards of a male dominated society.
Women’s issues emphatically surfaced in 1970s . The burning issues were rape of women in police custody, dowry murders and gender injustice, etc. The new challenges have come in the form of social bias against the girl child sex ratio which is falling very sharply.

In This Post we are  providing BALANCE OF PAYMENT NCERT MOST IMPORTANT QUESTIONS for Class 12 which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON BALANCE OF PAYMENT

1. Distinguish between autonomous and accommodating transactions of Balance of Payments account.
Ans. Autonomous items, also termed as ‘above the line items’, are those items, which are related to transactions which are determined by considerations of profit (economic motive) and hence, was no concern with the state of BoP. Autonomous transactions are present in both current and capital account of BoP, While accommodating transactions are present only in capital account of BoP. Accommodating items, also termed as ‘below the line items’, are those items of BoP that are not determined by considerations of profit but to restore identity of BoP.
The difference between autonomous and accommodating transacting is mat while deficit or surplus in BoP due to autonomous items, the accommodating items, are meant to restore the BoP identity.

2. Distinguish between Balance of Trade and balance on current account.
or
Distinguish between Balance of Trade and balance on current account of Balance of Payments.       (All India 2013)
Ans. Difference between Balance of Trade and balance on current account

Basis	Balance of Trade	Balance on current account
Meaning	Balance of Trade includes only visible items. It is the difference between exports and imports of goods of a country.	Balance of current account is the difference between sum of credit items and sum of debit items on current account.
Coverage	Balance of Trade does not record any transactions of invisible items and transfers	Balance of current account includes balance of visible items, balance of invisible items and balance of unilateral transfer.
Concept	Balance of Trade is a narrow concept and it is only a part of the Balance of Payment account.	Balance of current account includes the Balance of Trade hence, it is a broader concept.

3. State the components of capital account of Balance of Payments.
Ans. Components of capital account of Balance of Payments:
(i) Investments It includes investments to and from abroad in the form of FDI and Fll. Investment from abroad is a ‘credit’ item, whereas investment to abroad is a ‘debit’ item.
(ii) Borrowing and lending It includes the borrowings by residents from the residents of abroad (credit item), and sending to the resident of foreign country (debit item).
(iii) Foreign exchange It includes the reserve of foreign currency gold and Special Drawing Rights (SDRs) with the domestic country.

4. What does a Balance of Payments account show? Name the two parts of the Balance of Payments account.
Ans. The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. It summarises the exports and imports and other international transaction of a country with other countries.
Two parts of Balance of Payments account are as follows:
(i) Current account                  (ii) Capital account

.

5. List the transactions of current account of the Balance of Payments.

Ans. The transactions included in the current account of the Balance of Payments are:
(i) Export and import of visible items                      (ii) Export and import of services (invisible items)
(iii) Unilateral transfers

6. Explain the concept of surplus in the Balance of Payments account.
Ans. Balance of surplus When the receipts of the country on account of autonomous transactions exceed the payments of a country on account of autonomous transactions, this difference is termed as BoP surplus.
BoP Surplus = R>P, where R = Receipts of the country, P = Payment of the country, e.g., if the receipts of the country is Rs. 200 crore and the payments are Rs. 190 crore, then BoP surplus will be (200 -190) = Rs. 10 crore.

7. List the items of the current account of Balance of Payments account. Also define Balance of Trade.
Ans. Components of current account are as follows:
(i) Export and import of goods (visible items).
(ii) Export and import of services (invisible items).
(iii) Unilateral transfers to and from abroad.
Balance of Trade
Balance of Payment The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries.
Balance of Payments account are classified into current account and capital account. Borrowing from abroad are recorded in the capital account (credit side) of Balance of Payments as it is a foreign liability on the country and it is to be repaid with interest.
Trade Balance The difference between export and import of goods, i.e. only the visible items of economic transactions is termed as Balance of Trade.
Balance of Trade = Export Goods – Import of Goods
Current account balance Current account is that account of BoP, which records exports and imports of visible and invisible items and unilateral transfers.

8. Distinguish between Balance of Trade account and current account balance of BoP account.
Ans. Difference between Balance of Trade and current account balance of BoP account

Basis	Balance of Trade	Balance on current account
Meaning	Balance of Trade includes only visible items. It is the difference between exports and imports of goods of a country.                               .	Balance of current account is the difference between sum of credit items and sum of debit items on current account.
Coverage	Balance of Trade does not record any transactions of invisible items and transfers	Balance of current account includes balance of visible items, balance of invisible items and balance of unilateral transfer.
Concept	Balance of Trade is a narrow concept and it is only a part of the Balance of Payment account.	Balance of current account includes the Balance of Trade.
Financing of deficit	A deficit in Balance of Trade can be meet out by surplus of current account.	Deficit in current account cannot be meet out by using surplus of BoT.

9. Distinguish between current account and capital account of Balance of Payments.
Ans. Current account is that account of BoP, which records exports and imports of visible and invisible items and unilateral transfers. Current account shows the trade position of the country. Whereas capital account shows the assets and liabilities position of the country.
It records capital transfer such as loans and investments between one country and the rest of the world, which causes a change in the assets or liability status of the residents of a country or its government.

 6 Mark Question

10. Explain the distinction between autonomous and accommodating transactions in Balance of Payments. Also explain the concept of Balance of Payments deficit in this context.     
Ans. Autonomous items, also termed as ‘above the line items’, are those items, which are related to transactions which are determined by considerations of profit (economic motive). Autonomous transactions are that transaction between the residents of two countries which take place due to the considerations of profit. Autonomous items are not conditioned by the BoP status of the country, i.e. these are independent. Autonomous transactions are not done to establish identity of BoP. i.e. current account and capital account.
Accommodating items, also termed as ‘below the line items’, are those items of BoP that are not determined by considerations of profit but to restore identity of BoP. These are undertaken to maintain balance in the BoP account. These transactions correct the disequilibrium in autonomous items of BoP account. Accommodating transactions are also known as ‘below the line items’ and include foreign exchange reserve and borrowings to meet BoP deficit.
BoP Deficit
When the payments of a country on account of autonomous transactions exceed the receipts of the country on account of autonomous transactions, this difference is termed as BoP deficit.
Deficit in BoP = Receipts on account of autonomous transactions < Payments on account of autonomous transactions Suppose, the receipts of the domestic country is r 200 crore. Where as payments are r 220 crore. Then BoP deficit will be
= 220 – 200 crore = Rs. 20 crore

In This Post we are  providing FOREIGN EXCHANGE RATE NCERT MOST IMPORTANT QUESTIONS for Class 12 which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON FOREIGN EXCHANGE RATE

1. Distinguish between devaluation and depreciation of domestic currency.
Difference between devaluation and depreciation

Basis	Devaluation	Depreciation
Meaning	Devaluation is the fall in the value of domestic currency in relation to foreign currency. It is planned by the Central Bank in situation, when exchange rate is not determined by the forces of demand and supply.	It occurs when the value of domestic currency decreases in relation to the value of foreign currency in the foreign exchange market.
Example	A government has set 10 units of its currency is equal to one dollar.	If US $ exchanges ? 45 instead of ? 40 earlier the domestic currency (Indian rupee) has shown depreciation of domestic currency.

2. Giving two examples, explain why there is a rise in demand for a foreign currency
when its price falls?
Ans. (i) when there is a fall in the price of foreign currency, the import gets cheaper. It encourages the importers to import more and consequently, the demand for that foreign currency increases.
(ii) When the price of a foreign currency falls, the price of foreign assets also falls. It encourages domestic people and companies to buy foreign assets and consequently, the demand for that foreign currency increases.

3. Distinguish between fixed and flexible foreign exchange rate.
Ans. Fixed exchange rate is the system, under which the central authority or government maintains their exchange rate fixed either against gold or some other foreign currency. Whereas the rate of exchange which is determined by the market forces of demand and supply of foreign currencies in the foreign exchange market, is termed as flexible exchange rate.

4. Give meanings of fixed, flexible and managed floating exchange rates.

Ans. Fixed and flexible exchange rate
(i) Minimise exchange rate fluctuations
(ii) Reduces volatility and fluctuations in prices
(iii)Imposes discipline on the monetary authority
(iv) Encourages international trade and investment flows
(v) Less speculation in the currency market
The rate of exchange which is determined by the market forces of demand and supply of foreign currencies in the foreign exchange market, is termed as flexible exchange rate system.
Managed floating exchange rate The system of adjusting the exchange rates as per the rules and regulations of foreign exchange market is termed as managed floating.

5. What is meant by appreciation and depreciation of domestic currency? Explain. (All India 2010)
Ans. When the value of domestic currency increases in relation to a foreign currency due to demand and supply forces in a free market, it is termed as appreciation of the domestic currency.
Depreciation of the domestic currency occurs when the value of domestic country’s currency decreases in relation to the foreign currency.
For example, Increase in exchange rate is currency depreciation and decrease in exchange rate is currency appreciation.
(i) When Rs./$ exchange rate falls from 55 to 50 , it is termed as appreciation of domestic currency (i.e. Indian rupee) –
(ii) When Rs./$ exchange rate rises from 50 to 55, it is termed as depreciation of domestic currency .

6. Explain the meaning and two merits of fixed foreign exchange rate.
Ans.Fixed foreign exchange rate
(i) Minimise exchange rate fluctuations
(ii) Reduces volatility and fluctuations in prices
(iii)Imposes discipline on the monetary authority
(iv) Encourages international trade and investment flows
(v) Less speculation in the currency market
Two merits of fixed foreign exchange rate are:
(i) Less speculation in the currency market.
(ii) Encourages international trade and investment flows.

7. State two sources each of demand and supply of foreign exchange.
Ans. Two sources of demand for foreign exchange are:
(i) Imports from rest of the world.
(ii) Foreign investment across the world.
Two sources of supply of foreign currency are:
(i) Exports of goods and services from domestic country to foreign country .
(ii) Remittances from abroad.
4 Mark Questions

8. Explain two merits each of fixed exchange rate and flexible exchange rate. 
Ans. Merits of fixed exchange rate are as follows:
(i) Minimises exchange rate fluctuations.
(ii) Encourages international trade and investment flows.
Merits of flexible exchange rate are as follows:
(i) Independent monetary policy.
(ii) No need to maintain huge stock of gold or other currency.

9. How is foreign exchange rate is determined in the market?
Foreign exchange rate is determined by the market forces of demand and supply in foreign exchange market. The point where demand and supply of foreign exchange meet, gives the equilibrium rate of exchange

In the above figure, D stands for the demand for foreign exchange and 5 curve represents the supply of foreign exchange for different values of R i.e. rate of exchange. Point E is the equilibrium point, where D =5, so R will be the rate of exchange. If the rate of exchange is arbitrarily fixed other than R, there wi 11 be a situation of either excess demand or excess supply of foreign exchange, so R is the rate of exchange which is obtained from the equilibrium point E. Any disequilibrium will be adjusted automatically by the forces of demand and supply of foreign exchange to attain equilibrium.
6 Mark Question

10. Give the meaning of foreign exchange and foreign exchange rate. Giving reason, explain the relation between foreign exchange rate and demand for foreign exchange.

Ans. Foreign exchange Foreign exchange rate is determined by the market forces of demand and supply in foreign exchange market. The point where demand and supply of foreign exchange meet, gives the equilibrium rate of exchange as shown in figure and quantity of foreign exchange.

Foreign exchange rate Foreign exchange rate refers to the rate at which one currency can be exchanged for the other currency in foreign exchange market, e.g. if Rs. 58 is paid to buy one US dollar, then Rs./$ exchange rate will be 58 i.e. Rs.58 per dollar.

Relation between foreign exchange rate and demand for foreign exchange There is an inverse relationship between the foreign exchange rate and demand for foreign exchange, with the rise in foreign exchange rate, demand for foreign exchange falls and vice-versa.

In the above figure, D curve represent the demand for foreign currency. When exchange rate is high (R1), demand for the foreign currency falls (Q1,). On the other hand, when exchange rate is low (R₂), demand for the foreign currency rises Q₂. The demand curve for the foreign currency is always downward sloped and signifies an inverse relationship between demand and exchange rate i.e. price of foreign exchange.

In This Post we are  providing GOVERNMENT BUDGET AND THE ECONOMY NCERT MOST IMPORTANT QUESTIONS for Class 12 which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON GOVERNMENT BUDGET AND THE ECONOMY

Question 1.
What is meant by fiscal deficit? What are the implications of a large fiscal deficit?
Or
What is ‘fiscal deficit’? What are its implications?
Answer:
Fiscal deficit is the excess of total expenditure of the government over its total revenue and the capital receipts, excluding the borrowings and other liabilities of the government. Alternatively, fiscal deficit is an aggregate of the budgetary deficit plus government borrowings and the other liabilities. Fiscal Deficit = Total Expenditure – Total Receipts (excluding borrowings)
Or
Fiscal Deficit = Total Expenditure – (Total Revenue Receipts + Non-debt Capital Receipts)
Or
Fiscal Deficit = Budgetary Deficit + Borrowings and the other Liabilities Implications.

The important implications of fiscal deficit are:
(i) Large budgetary and fiscal deficit is an indication that the government has been spending beyond its means.

(ii) The mounting fiscal deficit implies that the increase in the tax revenue is not consistent with the revenue requirements of the government or that the tax collections are relatively sluggish. The implication may also follow that the tax system is relatively less elastic.

(iii) The increasing fiscal deficit implies that the government’s reliance over market and other borrowings has been rising. Moreover, it implies that the burden of debt seivice has been increasing.

Question 2.
Can there be a fiscal deficit in a government budget without a revenue deficit?
Answer:
Yes, there can be a fiscal deficit in the government budget without a revenue deficit.
Revenue deficit refers to a situation where revenue expenditure of the government exceeds its total revenue receipts. Fiscal deficit, on the other hand, refers to a situation where the total expenditure of the government exceeds sum total of its revenue receipts and non-debt capital receipts (total receipts excluding borrowings). Fiscal deficit is possible in a government budget even without revenue deficit ; in the situations when:

(i) the revenue budget is balanced and capital budget shows a deficit:
or
(ii) the deficit in the capital budget is greater than the surplus in the revenue budget

Question 3.
What are the implications of revenue deficit? State two measures of reduce this deficit. (C.B.S.E Outside Delhi 2011 Comp.)
Answer:
The excess of the government’s revenue expenditure over the revenue receipts is called the revenue deficit.
Given the same level of the fiscal deficit, a higher revenue deficit is worse than a lower one. High revenue deficit implies that the government should follow contractionary fiscal policy, that is, increase tax and/or reduce spending. In a less developed countries, it is difficult to force people to pay higher taxes or to cut expenditure on development activities.

Thus, the government usually finance its revenue deficit through borrowings. A revenue deficit implies a repayment burden in the future, not matched by any benefits via investment. It leads to rise in the prices and hampers the progress of the economy. Measures to reduce the revenue deficit are following:

• Framing suitable policies
• Proper utilisation of revenue receipts

Question 4.
What is a government budget? Discuss its objectives.
Answer:
The budget is a government’s annual statement of estimated receipts and payments over the fiscal year, which runs from April I to March 31.
The main objectives of government budget are:
(i) Reallocation of Resources: The government aims to reallocate resources in a way so that its economic (profit maximisation) and social objectives (public welfare) are fulfilled. The government can influence allocation of resources through implementation of appropriate fiscal policy.

(ii) Reducing Inequalities in Income and Wealth: Another important objective of the government is to reduce income inequalities through its policies. The government imposes higher taxes on the rich and spends the revenue on the welfare of the poor. This helps in reducing inequalities in the I distribution of income.

(iii) Economic Stability: The government budget plays a significant role in preventing business fluctuations due to inflation or deflation and hence, maintains economic stability.

(iv) Management of Public Enterprises: A large numbers of public sector industries have been established and managed for the welfare of the public. The government budget provides financial support to these enterprises.

(v) Economic Growth: The rate of saving and investment in an economy determine the rate of economic growth. The budgetary policy, therefore, aims to mobilise sufficient resources for investment in the public sector.

(vi) Reducing Regional Disparities: It is an important objective of the government budget to reduce regional disparities through taxation and expenditure policy. For this, government provides funds for the setting up of production units in economically backward regions.

Question 5.
Describe the importance of government budget.
Answer:
The importance of budget can be explained with the help of following points:
(i) Economic Stability: Government can achieve economic stability through budget. During inflation, government makes the surplus budget, whereas during depression, it makes deficit budget. Prices can be stabilised through budget.

(ii) Economic Control: Government controls the whole parliament and councils through budget. Revenue can be properly utilised through budget.

(iii) Economic and Social Development: Budget has a great importance in economic and social development Government encourages industries and agriculture by giving subsidies through its budget and encourages production. In the same way, government imposes high taxes through budget on rich class and redistributes the revenue collected by these taxes among the poorer sections of the society.

(iv) Administrative Efficiency: Government decides the limits of working areas of every official and employment through its budget.

(v) Instrument of Fiscal Policy: Budget is an important instrument of the fiscal policy of the country. Fiscal policy is the policy of fixing its revenue and expenditure in a way that economic fluctuations are minimised.

Question 6.
Explain the importance of public expenditure.
Answer:
Importance of public expenditure has been increased due to the following reasons: –
(i) Increase in the Activities of the State: In the modern age, the activities of the state have been increased many times. There has been an extensive and intensive increase in the activities of central, state and local governments.

Now a days, governments undertake various activities such as to run, encourage and regularise the economic activities, to maintain economic stability, to secure poor and backward classes and to increase the rate of economic development, etc. There is a great importance of public expenditure in the completion of these activities.

(ii) Economic Planning: Developing countries like India has adopted the path of economic planning for the removal of problems like poverty, unemployment and for the development of the country. As a result, the government has to incur expenditure on large scale. There is a great importance of public expenditure in economic planning.

(iii) Removing Unemployment, Poverty and Income Inequalities: Public expenditure has a great importance for the reduction of chronic problems like unemployment, poverty and income inequalities.

Question 7.
What is the meaning of revenue deficit? What problems does it create?
Answer:
The concept of revenue deficit is simple and straight. The revenue deficit is defined as the excess of revenue expenditure over revenue receipts. Mathematically
Revenue Deficit = Revenue Expenditure – Revenue Receipts
For example, according to the government of India, Budget for the year 2005-2006 states:
Total Revenue Receipts = ₹ 3,09,322 crores Total Revenue Expenditure = ₹ 3,85,493 crores

Revenue Deficit = ₹ 3,85,493 – 3,09,322 = ₹ 76,171 crores In other words, there should be revenue surplus, which should be used for building projects or building assets which yield return. In fact, revenue surplus represents government savings, which can be used for financing development.

Revenue deficit represents a critical situation in the economy. Revenue deficit indicates the amount of current expenditure which cannot be met by revenue receipts. It implies that government is spending beyond its means. The government should either increase its tax/non-tax receipts or should cut its expenditure.

In poor countries, in the initial stages of economic development, often the situation arises when the government has to incur large expenditure on administration and maintenance (particularly on defence, police and law and order) but it is difficult to compel the poor people to pay high taxes. In such situations, the government meets its revenue deficit either through borrowing or through disinvestment. Borrowing by the government, on the other hand, creates the problem of repayment of debt. Disinvestment reduces the asset of the government.

Question 8.
Explain the meaning of the following:
(i) Revenue Deficit
(ii) Fiscal Deficit
(iii) Primary Deficit
Ans.
(i) Revenue Deficit: Revenue deficit is the excess of current revenue expenditure over the current
revenue receipts.

Revenue Deficit = Current Revenue Expenditure – Current Revenue Receipts Current revenue expenditure includes both plan and non-plan expenditure of the government to be met through revenue receipts. Current revenue receipts include the net tax and non-tax revenue receipts of the central government.

Until the middle of 1970’s, the central government in India enjoyed revenue surplus as the revenue receipts of the central government exceeded the revenue expenditure. The phenomenon of revenue deficit made its appearance during the latter 1970’s.

(ii) Fiscal Deficit: Fiscal deficit is the difference between total expenditure of the government and its total revenue receipts and capital receipts excluding the borrowings and other liabilities of the government. Alternatively, fiscal deficit is the aggregate of budgetary deficit plus borrowings and other liabilities.

Fiscal Deficit can be calculated as below:
Fiscal Deficit = Total Expenditure – Total Revenue Receipts – Capital Receipts excluding borrowings.

(iii) Primary Deficit: Primary deficit is the difference between fiscal deficit and interest payments. It is the aggregate of budgetary deficit plus borrowings and other liabilities minus interest payments.
It can be calculated as:
Primary Deficit = Fiscal Deficit – Interest Payments Alternatively primary deficit can be evaluated as:
Primary Deficit = Budgetary Deficit + Borrowings and Other Liabilities – Interest Payments. The primary deficit in the central government budget in India was of the magnitude of? 19,502 crore in 2000-01 . which has increased to ? 31,317 crore in 2001 -2002.

Question 9.
Find budget deficit from the following data:
Answer:

Items	(₹ in Crore)
1. Revenue receipts	40,000
2. Revenue expenditure	30,000
3. Capital receipts	30,000
4. Capital expenditure	50,000

Budget Deficit = (Revenue Expenditure + Capital Expenditure) – (Revenue Receipts + Capital Receipts)
= (30,000 + 50,000) – (40,000 + 30,000)
= 80,000 – 70,000 = ₹ 10,000 crore

Question 10.
Is balanced budget an achievement for the government?
Answer:
Balanced budget is not always an achievement for the government. When the economy is in a state of depression, it is in fact suggested to increase government expenditure, even if it causes inflation in the economy.

Very Short Answer Type Questions:

Q1. Who was the chairperson of Mandal Commission? State any one recommen¬dation made by him/her.
Answer: Bindeshwari Prasad Mandal was the chairperson of Mandal Commission set up in 1978 to investigate the extent of educational and social backwardness among various sections of society and recommend ways to identify these classes.
The Mandal Commission gave its recommendations in 1980:
1. The commission advised that backward classes should be understood to mean backward castes since many castes other than the SCs were also treated as low in caste hierarchy
2. Reservation 27% seats in educational institutions and government jobs for these groups.
3. It recommended land reforms to improve the condition of OBCs.
4. Hence, Mandal commission made recommendations in economic and occupational structures.

Q2. State any two major political happenings of 1984 in India.
Answer: 1. Assassination of Indira Gandhi
2. Lok Sabha elections were held.

Q3. What was change in electoral performance of Congress party and BJP from 1984¬2004?
Answer: 1. In the elections of 1989, Congress secured 197 seats but did not get majority. Therefore, it decided to sit in opposition.
2. The National Front under V.P. Singh came to power supported by left front and BJP from outside.
3. The assassination of Rajiv Gandhi in May 1991 led to emergence of Congress as the single largest party and formed the government supported by AIADMK.
4. In 1996, BJP minority government was formed for short period. Later in June 1996 United Front with the support of Congress formed the
Government and H.D. Deve Gowda became Prime Minister and after 11 months I.K. Gujral came to power to rule till March 1998.
5. From March 1998 to October 1999, BJP and other parties formed alliances NDA (National Democratic Alliance) under the leadership of Atal Behari Vajpayee and regional parties demanded more share in government to extend its support.
6. In the elections of May 2004, Congress and its allies formed UPA (United Progressive Alliance) and came to power and Manmohan Singh became Prime Minister.

Q4. When was India’s New Economic Policy launched? Who was its chief architect?
Answer: It was launched in 1991 as the structure adjustment programme and it was started by the then Prime Minister Narasimha Rao:
1. India’s New Economic Policy was launched by the then Finance Minister Dr. Manmohan Singh.
2. The economic changes first became visible in 1991 and radically changed the direction that Indian Economy had pursued since independence towards liberalised and open economy.

Q5. What happened to the state government after demolition of Babri Masjid?
Answer: 1. The BJP state government was dismissed.
2. Alongwith that, other states where the BJP was in power, were also put under President’s rule.
3. A case against Chief Minister of U.P. was registered in Supreme Court.

Q6. What led to the serious debate over secularism?
Answer: The demolition of disputed mosque at Ayodhya on December 6,1992, by Karseva, led to a serious debate over secularism:
1. Most political parties condemned the demolition and declared it to be against secularism.
2. A debate took place about using religious sentiments for electoral purposes.

Q7. List the four groups to be emerged in 1990s.
Answer: 1. Parties in coalition with Congress— UPA (United Progressive Alliance).
2. Parties in alliance with BJP—NDA (National Democratic Alliance).
3. Left front parties (Left Parties).
4. Other parties not to be part of the rest (Others).

Short Answer Type Questions:

Q1. Describe any four major developments in the Indian politics since 1989.
Answer: In the midst of severe competition and many conflicts, a consensus appears to have emerged among most parties. This consensus consists of four elements:
(i) Agreement on new economic policies: While many groups are opposed to the new economic policies, most political parties are in support of the new economic policies. Most parties believe that these policies would lead the country to prosperity and a status of economic power in the world.
(ii) Acceptance of political and social claims of the backward castes:
Political parties have recognised the social and political claims of the backward castes need to be accepted. As a result, all political parties now support reservation of seats for the ‘backward classes’ in education and employment. Political parties are also willing to ensure that the OBCs get adequate share of power.
(iii) Acceptance of the role of state level parties in governance of the country: The distinction between state level and national level parties is fast becoming less important. State level parties are showing power at the national level and have played a central role in the country’s politics of last twenty years or so.
(iv) Emphasis on pragmatic consid-erations rather than ideological positions and political alliances without ideological agreement:
Coalition politics has shifted the focus of political parties from ideo-logical differences to power sharing arrangements. Thus, most parties of the NDA did not agree with the ‘Hindutva’ ideology of the BJP. Yet, they came together to form a govern¬ment and remained in power for a full term.

Q2. When and why did a long phase of coalition politics begin in India?
Answer: The era of coalitions could be seen after 1989 elections onwards. The Congress was the largest party but did not achieve a single majority, hence it decided to act as opposition party. This led to National Front (Alliance of Janata Dal and other regional parties). It received major support from BJP and left front. BJP and left front did not join the government but gave support from outside. The coalition era had many PMs and some of them held office for short duration.

Q3. “Coal ition government helps in consensus building”. Do you agree with the statement? Give arguments in support of your answer.
Answer: In the midst of severe competition and conflicts, a consensus appears to have emerged among most parties consisting of following four elements:
1. Most political parties were in support of new economic policies to lead the country to prosperity and a status of economic power in the world.
2. All political parties supported , reservation of seats for backward
classes in education and employment and even to ensure the OBCs to get adequate share of power.
3. Role of state level parties was accepted in the governance of country.
4. Coalition politics has shifted the focus of political parties from ideological differences to power sharing arrangements. Hence most of the NDA did not agree the Hindutva ideology of BJP, still they came together to form a government and remained in power for full term.

Q4. Write a note on Hindu-Muslim Riots in Gujarat.
Answer: 1. The Anti-Muslim Riots took place at a station called Godhara in 2002.
2. A fire took place on a bogey full of leorsevakos returning from Ayodhya.
3. The hand of Muslims was suspected behind this fire.
4. Widespread violence took place against muslims in which nearly 1100, mostly muslims were killed.
5. Human Right commission criticised Gujarat government’s role in failing to control violence and provided relief to victims.
6. Gujarat riots show that the government machinery also becomes susceptible to passion and alert us the danger involved in using religious sentiments for political purposes.

Long Answer Type Questions:

Q1. In 2014 elections, people have voted for a stable government at the Centre. Do you think that the era of coalition has ended? Support your answer with suitable arguments.
Answer: After Independence, Congress party came in power. It ruled over the country as a democratic government till 1977. One after the other the government was represented by the Congress Prime Ministers like Nehru, Shastri and then Mrs. Indira Gandhi. It was due to some political upheaval; a state Emergency was declared in 1975. During Emergency all the opposition leaders were jailed and their constitutional powers were seized. It made all the opposition leaders unite and form first united party in the name of Janata Party which came in power in 1977. The general election held soon after the Emergency. Though it couldn’t last long, but it started a new concept of rule in India. One after the other, India saw many governments ruled by alliance group, except a few single-party-led government. But with the elections of 1989, a long phase of coalition politics began in India. Since then there have been nine governments at the centre all of which have either been coalition government or minority government supported by other parties which did not join the government. The National Front government in 1989, the United Front government in 1996 and 1997, the NDA government in 1997, 1998 and 1999 and then UPA government in 2004 and 2009 and again BJP-led NDA government in 2014 have been the coalition governments in India. In none
of these governments any one single party had the number enough to form the government at its own. But in 2014, there was a change in the pattern. BJP could gain 284 seats in the Lok Sabha election which was sufficient to form the government at its own -which required to only 272. But as the election was fought with a pre-poll alliance by NDA led by BJP. So the present government was formed with Narendra Modi, the leader of BJP.
This election shows that people are again turning to the single party government at the centre which may be stable. People have experienced the lack of stability, lack of policy decision and lack of proper development in the government ruled by the coalition group.

Q2. In the midst of severe competition and many conflicts in 1989, a consensus appeared to have emerged among most parties. Explain any three points.(or)
Examine growing consensus over the crucial issues.
Answer: In the midst of severe competition and conflicts, a consensus appears to have emerged among most parties consisting of following four elements:
1. Most political parties were in support of new economic policies to lead the country to prosperity and a status of economic power in the world.
2. All political parties supported reservation of seats for backward classes in education and employment and even to ensure the OBCS to get adequate share of power.
3. Role of state level parties was accepted in the governance of country.
4. Coalition politics has shifted the focus of political parties from ideological differences to power sharing arrangements. Hence most of the NDA did not agree with the Hindutva ideology of BJP, still they come together to form a government and remained in power for full term.

Q3. What was Mandal Commission? Did it try to solve the problems of other Backward classes? State any two arguments in support of your answer?
Answer: Bindeshwari Prasad Mandal was the chairperson of Mandal commission set up in 1978 to investigate the extent of educational and social backwardness among various sections of society and recommended way to identify these classes.
The Mandal commission gave its recommendations in 1980:
1. The commission advised that backward classes should be understood to mean backward castes since many castes other than the SCs were also treated as low in caste hierarchy.
2. Reservation 27% seats in educational institutions and government jobs for these groups.
3. It recommended land reforms to improve the condition of OBCs.
4. Hence, Mandal commission made recommendations in economic and occupational structures.
The government of India accepted recommendations in 1990:
1. 27% jobs reservation has been made in central and state government.
2. Many Welfare Schemes have also been launched as Swarnima National Backward classes Finance and Development Corporation.