Chapter 1

Economics Development

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 Infant Mortality Rate can be defined as total number of children that
die before the age of one year our of 1000 live children born in that particu-
lar year.

Literacy rate can be defined as proportion of literate population in the

age group of 7 years & above.

Net attendance Ratio can be defined as the total number of children

of 6-10 years age group attending school out of total no. of children in the
same age group.

Total Income from all the sectors

Per capital income = Total Population

Total National Income

= Total Population

BMI can be calculated by taping the weight of a person (kgs) & height
(mtr) then divide the weight by the square of the height of a person. If the
result is less than 18.5 then person in under nourished & if more than 25,
then person is over weight.

HDI (Human Development Index) Rank of India in the World is 136.

Key Points to Remember:

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 1. Development:- Development is generally defined as growth. Some
of the important goals are - seeking more income, equal treatment,
freedom, security, and respect from others.

Different people have different development goals. What may be de-

velopment for one May not be for the other. It may be destructive for
the other.

One would consider earning more income, being a common factor

among people. With this income, they buy services and goods for
their daily needs.

Per capita Income = Total National Income/Total Population

For comparing countries, their Income is considered to be one of the

most important attributes.

National development refers to the ability of a nation to improve the

lives of its citizens. Measures of improvement may be material, such as
availability of healthcare etc.

Sustainable Development is development that meets the needs of

the present without compromising the ability of future generations to meet
their own needs.

We have not inherited the world from our forefathers — we have bor-
rowed it from our children.

Human Development Index is a composite statistic of life expect-

ancy, education and per capita income indicators, which are used to rank
countries in four tires of human development.

Objective Questions

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Fill in the blanks :

1. The average income is also known as _____ .

2. BMI stands for ______ .

3. In world development report, brought out by the world bank, ___ is

used in classifying countries.

4. The maximum age upto which an adult is expected to live at birth is

called ______ .

5. Development that meet the needs of the present without compromis-

ing the ability of future generations to meet their own needs ___ .

Multiple Choice Questions

6. The total no. of children attending school as a percentage of total no.

of children in the same age group is called ______ .

(a) Net attendance ratio (b) Literacy rate

(c) Gross enrolment ratio (d) level of education.

7. Per capita income hides :

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 (a) Economic dispartities (b) Average income
(c) Total population (d) None of these

8. The per-capita income of different countries is counted in which cur-

rency ?

(a) Rupees (b) Pounds

(c) Us Dollars (d) Canadian dollars

9. A good way to measure the quality of life in countries across the world
is by comapring their _____ .

(a) Per capita income (b) Human development index

(c) gross national income (d) Sustainable development

10. _____ helps in maintaining the nuttritional level of poor people by

providing food at lower cost.

(a) Public Distribution System (PDS)

(b) Body Mass Index (BMI)

(c) Gross National Income (GNI)

(d) Human Development Index (HDI)

True/False

11. Life expectancy is age at the time of death.

12. HDI is compared on the basis of educational only.

13. Average income and per-capita income both are the same concepts
_____ .

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14. Meaning of development is different for different people ____ .

15. A person having BMI of less than 18.5 is underweight or under

norished person ____ .

Assertion and Reason Based Questions

In the questions given below there are two statements marked as As-
sertion (A) and Reason (R). Read the statements and select the correct
option.

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)

(b) Both (A) and (R) are true but (R) is the correct explanation of (A)

(c) (A) is correct (R) is incorrect

(d) (A) is incorrect but (R) is correct.

16. Assertion : Different people have different development goals.

Reason : Developmental goals of different people are always con-

flicting.

17. Assertion : A high average income is not indicative of the overall

well being or human development in a country.

Reason : Average income does not cover Indicators like level of lit-
eracy rate, health facilities and public facilities in a country.

18. Assertion : Sustainable development is essential for economic

growth of the countries.

Reason : Sustainable development ensures that environment friendly

measures are adopted for carrying aout production process.

19. Assertion : A country that was extremely rich in natural resources

has mainly relied on oil extraction for revenue generation for several

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 centuries. However, the scientists predict that the country may be-
come poor in the future if other means of generating income are not
devised.

Reason : Oil is a non renewable resource and it is likely to get ex-

hausted if not used judiciously.

20. Assertion : The average income of a country is about US $ 12,056 :

however the country is still not a developed country.

Reason : The income levels are highly skewed for the country.

Source Based Questions (4 Marks)

Suppose for the present that a particular country is quite developed.

We would certainly like this level of development to go up further or at least
be maintained for future generations. this is obviously desirable however,
since the second half of the twentieth century, a number of scientists have
been warning that the present type, and levels, of development are not sus-
tainable.

Groundwater is an example of renewable resources. These resources

are replenished by nature as in the case of crops and plants. However,
even these resources may be overused. For example, in the case of ground-
water, if we use more than what is being replenished by rain then we would
be overusing this resource.

Non-renewable resources are those which will get exhausted after years
of use. We have a fixed stock on earth which cannot be replenished. We do
discover new resources that we did not know of eariler. new sources in this
way add to the stock. However, over time, even this will get exhausted.

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Questions

1. Renewable resources are the resources which get replenished

bynature time to time. Example of renewable resource is :

(a) The ocean water (b) The rain water

(c) The lake wtater (d) The ground water

2. Who said ''The earth has enough resources to meet the needs of all
but not enough to satisfy the greed of even one person.''

(a) Jawaharlal Nehru (b) Sardar Vallabhbhai Patel

(c) Mahatma Gandhi (d) Lal Bahadur Shastri

3. The non renewable resources are the which will get exhausted after
years of use why ?

(a) Because we are finished with the stocks already

(b) Because they are few in number.

(c) Because they were limited and are exhausted now

(d) Because we have a fixed strock on earth which cannot be re-

plenished.

4. A development without environmental degradation and with conser-

vation of resources for the future generation is called :

(a) Sustainability of Resources

(b) Sustainability of Development

(c) Sustainaibility of Renewable Resources.

(d) Sustainability of Non-Renewable Resources

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 One way to find out if adults are undernourished is to calculate what
nutrition scientists call Body Masss Index (BMI). This is easy to calculate.
Take the weight of the pedrson in Kg. Then take the height in metres. Di-
vide the weight by the square of the height. In this figure is less than 18.5
then the person would be considered undernourished. However, if this BMI
is more than 25, then a person is overweight. Do
remember that this criterion is not applicable to
growing children.

Let each student in a class find out the weight

and height of three adult persons of different eco-
nomic backgrounds such as construction work-
ers., domestic servants, office workers, business-
persons etc. Collect the data from all the students
and make a combined table. Calculate their BMI.
Do you find any relationship between economic
background of person and her/his nutritional sta-
tus ?

Table 1.6 Some Data Regarding India and its Neighbours For 2014
Country Gross National Life Lteracy Rate HDI Rank in
Income (GNI) Expectancy for 15+ yrs the world
per capita at birth population 2014
(2014 PPP $) 2014 2005-2013
Sri Lanka 9979 74.9 91.2 73
India 5497 68 62.8 130
Myanmar 4608 65.9 92.6 148
Pakistan 4866 66.2 54.7 147
Nepal 2311 69.6 57.4 145
Bangladesh 3191 71.6 58.8 142

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 1. Who compares countries based on the eduation levels of the people,
their health status and per capita income as their indicators to pre-
pare their Human developement report?

(a) UNICEF (b) UNO

(c) UNDP (d) UNEP

2. According to the table, which country has the best HDI Rank in the
world?

(a) Pakistan (b) India

(c) Nepal (d) Sri Lanka

3. Which is the only way to find out whether we are properly nourished ?

(a) To calculate our body weight

(b) To calculate our body built.

(c) To calculate our body mass Index

(d) To calculate our height

4. Arrange the followng in the correct sequence for calculating the body
mass Index (BMI)

(i) Convert the height recorded in cms into mtrs.

(ii) Take the weight of each individual in kg.

(iii) Take the heigh by drawing up a scale on the wall and measure
accurately with head straight.

(iv) Divide the weight in kg by the sequre of the height

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Options are :

(a) (i) (ii) (iv) (iii) (b) (iv) (iii) (i) (ii)

(c) (ii) (iii) (i) (iv) (d) (iii) (iv) (i) (ii)

Example 1 : Groundwater in India

Recent evidence suggests that the groundwater
is under serious threat of overuse in many parts of
the country. About 300 districts have reported a
waterlevel decline of over 4 metres during the past
20 years. Nearly one-thirds of the country is overus-
ing their groundwater reserves. In another 25 years.
60 percent of the country would be doing the same if
the present way of using this resource continues.
Grandwater overuse is particularly found in the agri-
culturally prosperous regions of Punjab and Western
U.P. hard rock plateau areas of central and south In-
dia some coastal and rapidly growing urban settle-
ments.''

(a) Why ground water is overused?

(b) Can there be development without overuse?

(c) Which are the areas where ground water is being overused?

(d) What is the main cause of overuse of ground water in Punjab and
western UP.

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 Answers

1. Percapita income

2. Body mass index

3. Average income

4. Life expectancy

5. Sustainable development

6. Net attendance ratio

7. Economic Disparities

8. US dollars

9. Human development index

10. Public distribution system

11. False

12. False

13. True

14. True

15. True

16. (b)

17. (a)

18. (a)

19. (a)

20. (a)

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 Answers for source based question

Ans 2 (A) (C UNDP)

(b) d

(c) c

(d) c

Long Answer Type Questions (3 or 5 Marks Each)

1. Why do different persons have different notions of development?

Explain?

2. In what respect is the criterion used by the UNDP for measuring de-
velopment different from the one used by the World Bank?

3. Why is literacy essential for the economic development? Explain?

4. Money in your pocket cannot buy all the goods and services that you
may need to live well. Is it true? Elucidate.

5. “Girls in India in the rural sector are sometimes not able to get sec-
ondary level education”. Give three reasons for this.

6. Briefly define the following terms.

A. Infant Mortality Rate

B. Net Attendances Ratio

C. Literacy Rate

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Answer

1. Different people has different notion for development because:

 It is because the life situations of persons are different.

 People seek things that are most important for them or that which
can fulfill their aspirations or desire.

 What may be development for one may not be for the other. It
may even be destructive for the other.

 For example: The developmental goals of a boy from a rich ur-

ban family would be to get admission in a reputed college,
whereas the developmental goals of a girl from a rich urban family
would be to get as much freedom as her brother.

2. UNDP World Bank

Has taken education, health and It uses per capita income base
per capita income as the base. for comparison.
Countries have been ranked. It is considered as a narrow con
cept of development.

It is also considered as a broader Under this concept countries

concept of development. have been divided into three
categories — rich, middle and
poor.
3. Literacy is an essential element for the economic development since:

 Education gives us vast knowledge.

 A literate person is eligible to get suitable employment.

 Education develops the ability to implement modern technol-

ogy.

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  Literate people understand the importance of remaining healthy
and stay away from the deadly disease.

4. Money cannot buy all the goods and services that you may need to
live well.
 Money cannot buy us pollution-free environment.
 Money cannot buy us a disease-free life and might not be able
to get protection from infectious disease.

 Beside money, people also like to have equal treatment in the

society, freedom, dignity and honor in their lives, which money
cannot buy them.

5.  Gender Discrimination

‘Poverty

Distance

6. A. Infant mortality rate is number of deaths under one year of age

occurring among the live births in given geographical area during
a given year.

B. Net Attendance ratio is defined as the ratio of the number of people

in the official age-group attending any educational institution in a
particular class-group to the total number of people in the age-
group.

C. Literacy rate is the total percentage of the population of an area at

a particular time aged seven years or above who can read and
write with understanding.

Develop the answers of following questions using the key points you
can add other points as well.

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 1. What is National Development? What are the aspects covered
underthe National development? (CBSE 2010)

 Comprehensive term including education, living, standard, PCI,

Education.

 Just & fair use of resources

 Projects & policies affecting large number of people. Focus is

on social infrastructure

2. “The Earth has enough resources to meet the need of all but not enough
to satisfy the greed of even one person.” Explain in light of sustain-
able development.

 Ground water as renewable resources but over use lowering

water table.

 Judicious use & sustainable development

 Resource use without harming the environment

 Reduce, reuse & recycle & alternate sources of energy.

3. Development goals of one may be confiding or destrucive for other

or what may be development for one may be destruction for other
(2013, 2014.2015&2016)

Ans. Different notions of development

Construction of dam may produce electricity but destruct habitats.

More habitation may lead to houses for many but destruction in natu-
ral habitat.

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 5. Study the given data & Answer the questions:

State Infant Mortality Literacy Net attendance Per capita

Rate Ratio income

Maharastra 24 82 64 11,7,091

Kerala 13 94 78 10,3,820

Bihar 48 62 35 31,199

(I) Which state has highest per capita income?

(ii) Which state has highest literacy rate what could be the possible
resource for this?

(iii) Which has highest infant mortality rate & what could be the reason
according to you for this?

Ans. (i) Maharastra

(ii) Kerala. Highest N.A.R.

(iii) Bihar. Low literacy

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