Development - Class 10 Economics - Extra Questions

(ii) There is enough food in the country, even then 40% of the people in the country are undernourished because:
→ A large number of people are so poor that they cannot afford nutritious food.
→ In most of the states, the Public Distribution System (PDS) does not function properly and the poor people cannot get cheap food items.
→ There is a lack of educational and health facilities in many parts of the country. So many people remain backward and poor. As such, they are unable to get nutritious food.

Humans increase environmental degradation as they increase the levels of carbon dioxide in the air. Global warming may affect environmental factors, including the availability of water. Warming increases transpiration from plants. An earlier snow melt increases the chances of flooding as well as the chances of drought.

Global warming increases the annual precipitation. The additional rain causes an increase in the rate of soil erosion, which leads to a further decline in water quality. Even with the increased precipitation, warmer temperatures decrease the amount of moisture the soil holds.

From an agricultural standpoint, global degradation leads to the need for additional irrigation water. Adding water in this manner increases the salinity of the soil, eventually to the point that it is no longer able to support crops.

Few examples of environmental degradation:

1.      Deforestation

2.      Soil erosion

3.      Falling levels of ground water

4.      Depletion of the ozone layer and combustion from automobiles causing extreme air pollution

5.      Water Pollution

6.      Throwing waste in river

7.      Use of chemical fertilizers and pesticides

8.      Burning of coal and mineral oil

• Undernourished adults in Kerala is low for both males and females compared to Madhya Pradesh.
• Health is given more importance in Kerala as compared to Madhya Pradesh.
  

• The criterion used by the UNDP for measuring development is different from the one used by the World Bank in the following respects:

  The World Bank: The World Bank uses per capita income as the sole criterion for measuring development.

  The UNDP: It uses Human Development Index (HDI) based on a combination of factors such as health, education, and income as the criterion for measuring development.

  Thus, the UNDP does not rely solely on per capita income, as the criterion for measuring development, as in the case with the World Bank.

The percentage of population who are economically active is an important index of development.

Discrimination happens when you are treated less favourably than others because of a personal attribute about you rather than your ability to do the job. It is unlawful to discriminate against someone due to their protected attributes: Race, colour, national extraction or social origin. The most common grounds on which discrimination is prohibited, are gender, racial or ethnic origin, religion or belief, age, disability, sexual orientation or language. Under discrimination law, it is unlawful to treat a person less favourably on the basis of particular protected attributes such as a person's sex, race, disability or age. Treating a person less favourably can include harassing or bullying a person

• People have different developmental goals because people come from different background.

• Different people have different dreams and aspirations.

• People set their goals according to the changing circumstances and the prevailing situation
• People may change the goal with the change in situation which could be contradictory to previous goal
• For Example : A person willing to do higher education will change his goal go for employment because weak economic situation of the family
  

Sustainable development means planning for development should be compatible with the carrying capacity of the natural resource. It should provide necessary momentum for continuation of development processes in future. When groundwater is over used, it depletes at a lesser rate than natural replenishment by rainfall and creates water stress in future. The extent of use should be limited to replenishable level for sustainable development.

Economic self-sufficiency is the ability of individuals and families to maintain sufficient income to consistently meet their basic needs – including food, housing, utilities, health care, transportation, taxes, dependent care, and clothing – with no or minimal financial assistance or subsidies from private or public. Self-reliance is the social and economic ability of an individual, a household or a community to meet essential needs (including protection, food, water, shelter, personal safety, health and education) in a sustainable manner and with dignity.

Measurement to compare development between two countries are as follow :-

• National income as an index of development
• Per capital real income
• Economic welfare as an index of economic development
• Comparative concept
• measurement through occupational pattern
• Standard of living  criterion

Sustainability for development or sustainable development refers to the development which is done without damaging the environment and other resources. In other words, balancing  the need to use resources and also conserve them for future is kn own as sustainable development. 

Following are the three goals of economic development:-
1- Rise in per capita income.
2- Reduced IMR and greater life expectancy rate.
3- Increased literacy and reduced poverty.

Per capita income, also known as income per person, is the mean income of the people in an economic unit such as a Country or city. Per capita income is often used as average income, a measure of the wealth of the population of a nation, particularly in comparison to other nations.

The most basic comparison is between GDP per capita levels or the levels of GDP per capita in terms of Purchasing Power Parity. However, GDP can sometimes be a misleading measure as it may not capture many other aspects of the quality of life, such as crime, education, environmental quality, etc. The Human Development Index published by the UN is a composite measure that accounts for a broader set of development factors. 

The Three Major characteristics of developing countries are -

• Low per capita real income.
• High population growth rate/size.
• High rates of unemployment.

• Economic progress cannot take place with increasing population.
• Comparison of economic development between two countries having a different level of population is not appropriate. Hence, per capita income is being used as an indicator of development instead of national income.
  

Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things. Which are as follows:
1. Equal treatment
2.Better health and education opportunities

Measure to correct disequilibrium in the balance of payment.

(i) Export promotion:

Exports should be encouraged by granting various bounties to manufacturers and exporters. At the same time, imports should be discouraged by undertaking import substitution and imposing reasonable tariffs.

(ii) Import:

Restrictions and Import Substitution are other measures of correcting disequilibrium.

(iii) Reducing inflation:

Inflation (continuous rise in prices) discourages exports and encourages imports. Therefore, government should check inflation and lower the prices in the country.

(iv) Exchange control:

Government should control foreign exchange by ordering all exporters to surrender their foreign exchange to the central bank and then ration out among licensed importers.

14th highest income
Gujarat is the 14th highest income Indian state/union territory by GSDP per capita.

Social development is about improving the well being of every individual in society so they can reach their full potential.

1.RTI Act can be misused to ask irrelevant questions which can effect functioning of the Government departments.

2.Officers are afraid to take prompt decisions so as to save exposure of wrong working of the Government.

3.Media can be misused to spread rumours and false news over a huge audience, which may be destructive in some situation.

Suggestions to resolve the dichotomy and to minimise these negative impacts are:

1.RTI Act should be amended to put a limit on the number of RTIs a person can file before the same PIO in a month and to punish those, who misuse it for blackmailing.

2.An independent department can review and investigate, judicial verdicts on an annual basis to monitor judicial activism.

3.Information drives can be conducted to inform the people of the growing vulnerabilities of media misinformation.

Human development refers to the process of improvements in human beings. People become human resources when investments in them are made in the form of health and education. Life expectancy at birth, adult literacy rate, per capita GDP are important indicators of human development. Economic development will be sustainable if resources are managed in such a way that future generations do not suffer and have at least the same which present generations have.

They opposed it because of deflation which decreased their income.

Money cannot buy all the goods and services that you may need to live well. So, income by itself is not a completely adequate indicator of material goods and services that citizens are able to use. For example, normally, your money cannot buy you a pollution-free environment or ensure that you get unadulterated medicines, unless you can afford to shift to a community that already has all these things. Money may also not be able to protect you from infectious diseases, unless the whole of your community takes preventive steps.

Reagan defended freedom of enterprise and no government intervention in the economy. Increased production and fair trade would help the economy.

People seek things that are most important for them, i.e., that which can fulfill their aspirations or desires. In fact, at times, two persons or groups of persons may seek things which are conflicting. A girl expects as much freedom and opportunity as her brother, and that he also shares in the household work. Her brother may not like this. Similarly, to get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced – such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

HDI can be improved by Quality Education and Good Healthcare facilities.

It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of household work and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.

Coal, petroleum products, electricity are some of the present sources of energy used by people in India. Petroleum products and coal are non-renewable sources of energy. These natural resources would be exhausted after a few years if they are not used judiciously. 

Possibilities for energy sources after fifty years can be nuclear energy from radio-active elements, solar energy, wind energy etc. Wind, sunlight are non-exhaustive resources which may be utilised without interruption for years and years.

Consequences of environmental degradation do not respect national or state boundaries, this issue is no longer a regional or national issue and our future is linked together. Sustainability of development is essential for all mankind and it is our common responsibility to save the environment. These days it is a matter of discussion among different countries of the world. Global warming, acid rain, etc., are not to be controlled by one nation. It is a global matter of thinking and finding the solutions.

Three reasons how literacy rate helps in determining economic development are as follows :

(i) Higher literacy rate promotes development of knowledge and skills amongst a person who can undertake better job opportunities. 

(ii) It promotes awareness amongst the people about the issues of the country and how to tackle them collectively. 

(iii) Helps in mobility of skilled labourers from one region to another in a country which helps in economic development.

More jobs can be created in the field of education because of the following reasons : 

(i) In India only 75% people are literate. It means to provide every indian good education, there would be more requirements for schools. 

(ii) More schools means more number of teachers required, meaning more jobs. 

(iii) More schools will necessitate thousands of supporting staff (like office staff).

The concept of sustainability explains the capacity to use the resources judiciously and maintain their balance. Thus, sustainability is a matter of sharing development opportunities and not poverty and human deprivation. If the present is miserable and unacceptable to the majority of the worlds people, it must be changed before it is sustained. Every generation wants to get the maximum benefits from the available resources but it would be disastrous because the available resources will be exhausted at a rapid speed and in such circumstances the future generation will be deprived of such resources. Resources such as mineral wealth, iron, gold, copper, silver etc. are exhaustible; hence we should use them judiciously.

Kerala has lower per capita income but better human development ranking than Punjab because of many factors. Kerala has the highest literacy rate in the country. The Infant Mortality Rate of Kerala is much less than Punjab. Net Attendance Ratio of Kerala is higher than that of Punjab. Kerala has better health and educational infrastructure than Punjab. Kerala also has better public facilities.

Point of Distinction	Economic Development	Human Development
Meaning	Growth of GDP due to increase of population in the country	Development which includes monetary and non - monetary aspects
Results	This is a tool to achieve human development	This is the final goal of all development
Nature of Growth	It includes quantitative growth	It includes quantitative as well as qualitative growth.

HDI is included in the Human Development Report published by UNDP. It compares different countries on the basis of education, health and PCI in order to measure their development.

Three components of HDI are as follows :

(i) Life expectancy : The maximum age that a person is expected to live 

(ii) Gross enrollment ratio : Enrollment ratio for students in primary, secondary and higher secondary education 

(iii) Average income or PCI : Total income of a country divided by the total population

Three reasons why human development is important for economic development are as follows :

(i) Educational status of the people indicate the quality of population of a country to undertake better jobs. 

(ii) Better health facilities indicate better life expectancy which would lead to work longer in their lifetime and generate income for the country. 

(iii) Per capita income with equitable distribution of wealth indicates less gap between the rich and the poor.

The problem of ozone depletion is caused by high levels of chlorine and bromine compounds in the stratosphere.

Now-a-days groundwater is highly overused because of many reasons, some of which are as follows.
(i) Groundwater is a fresh water source and can be used for drinking purpose. It is actually over exploited in urban areas for domestic use and drinking purpose.
(ii) Groundwater is extensively used for irrigation purpose, especially in North India. Here, most farmers have their own wells and tubewells in their farms for irrigation to increase their production.
(iii) Post-independent India witnessed intensive industrialization and urbanization. Both these factors have made the matter worse by exerting pressure on existing freshwater resources.

Yes, definitely development is possible without over use. This is what we know as " Sustainable development" . Sustainable development uses today resources judiciously, so that the future generation too has their fair share of resources. Promoting sustainable development can to lots to preserve ground water levels.

Though income is one of the most important aspects of our lives, there are other important things, such as:

1. People also seek things like equal treatment, freedom, security and respect.
2. Women need safe and secure environment to take up a variety of Jobs or run a business.
3. People also need political rights.
4. People seek a pollution-free environment.

Increasing number of motor vehicles and concentration of industries in urban areas has led to air pollution in urban areas.

The demand for resources has gone beyond the rate of regeneration (supply). It has increased the pressure on the absorptive capacity of the environment, which has led to degradation of the environment.

	Importance	Limitations
	1. Indicates the distribution of income among the total population of the country	Does not indicate the distribution of income amongst the rich and the poor
	2. It is easy to calculate (total income $$\div$$ total population)	Does not show the health status and level of education available
	3. Helps in comparing different countries based on their income and population	It ignores other aspects like law, defence, etc.

Increased financial commitments of the government due to global warning and ozone depletion and rise in expenditure on health due to decline in air and water quality shows that opportunity costs of negative environmental impacts are high.

People have different developmental goals because people come from different background.Different people have different dreams and aspirations.People set their goals according to the changing circumstances and the prevailing situation .People may change the goal with the change in situation which could be contradictory to previous goal . For Example : A person willing to do higher education will change his goal go for employment because weak economic situation of the family. Hence, People may have different developmental goals; what is development for one, may even be developent for the other.

The characteristic of developed nations (USA):
1. High standard of living.
2. Most of the GDP came from the industry sector.
3. High GDP per capita.
4. Low corruption.
5. Mainly urban citizens.
6. Advanced public transportation.
7. Low poverty.
8. Low number of homelessness.

Characteristics of Developing nations (India):
1. Low per capita real income. Low per capita real income is one of the most defining characteristics of developing economies.
2. High population growth rate/size.
3. High rates of unemployment.
4. Dependence on primary sector.
5. Dependence on exports of primary commodities.

The three characteristics of development are as follows :
(i) Different people have different development goals.
(ii) Income is the most important component of development for some people. It may be destructive for the other.
(iii) For development, people look at mixed goals. Besides seeking more income, one way or the other, people also seek things like equal treatment, freedom, security and respect of others.

(A) GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country.

(B) Net national product (NNP) refers to gross national product (GNP), i.e. the total market value of all final goods and services produced by the factors of production of a country or other polity during a given time period, minus depreciation.

(C) Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

• Punjab is the most developed state in India ( 2003-03 ) on Per capita income basis.

• The Per capita income of Punjab in 2002-2003 is Rs. 26,000 per annum.

• Kerala has low per capita income  compared to Punjab. But the State has HDI rank better than Punjab.

• Average income is one of the factors of HDI calculation.

• Earth has enough resources for every need and those resources have to be used judiciously.
• Over exploitation of resources will lead to environmental degradation and eventually affecting the current generation and the future generations.
• The development should be sustainable in nature and not exhaustive and over exploitative.
• The time for replenishment of resources should be allowed for 'green economic development' to practice.
  

For comparison between countries, total income is not such a useful measure because countries have different populations, comparing total income will not tell us what an average person is likely to earn.
Hence, we compare the average income which is the total income of the country divided by the total population. The developmental level of two counties are compared by their per capita Income.

(A) In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added.

(B) The Income Method: adding factor incomes. Here GDP is the sum of the incomes earned through the production of goods and services.

(C) An expenditure is a payment in cash or barter credits, or the incurrence of a liability by an entity, in exchange for goods or services. Evidence of the documentation triggered by an expenditure is a sales receipt or an invoice. Organizations tend to maintain tight controls over expenditures, to keep from incurring losses.

• Bangladesh
• Pakistan
• Myanmar
  

Sustainable development is essential because:
(i) Rapid economic growth and industrialisation have led to reckless exploitation of natural resources.
(ii) There is fear of complete exhaustion of these natural resources.
(iii) In the process of economic growth, damage is being caused to environment and ecology which ultimately will create insecurity for human beings.

For comparing the developmental level of different countries, their income is considered to be one of the most important attributes. The countries with higher income are more developed than others with less income. For comparison between countries, we consider the per capita income of each country. In World Development Report, countries are recognised as rich country and low-income country according to their per capita Income. With more income, people Will be able to get more things they need. So, greater income itself is considered to be an important criterion for the development of a country.

1. Sustainable development means using available resources judiciously without compromising the need of the present and future generations.

2. Sustainable development can also be defined as an approach to the economic development of a country without compromising with the quality of the environment for future generations. 

3. In the name of economic development, the price of environmental damage is paid in the form of land degradation, soil erosion, air and water pollution, deforestation, etc. 

4. This damage may surpass the advantages of having more quality output of goods and services.
   In this way economic development may be threatened by economic growth.

1. Healthcare
2. Education
3. Sanitation
4. Transportation
5. Roadways and Railways
   

Sustainable development is a development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.”
There are 3 components of sustainable development economic growth, environmental stewardship, and social inclusion. The concept of sustainable development is based on three main elements uniform economic growth, protection and preservation of the environment, and respect and improvement of social and human rights.