ECONOMICS

CHAPTER 1: DEVELOPMENT
CLASS X

Q1. What is development ?

A1. Development is a process that involves forward or onward movement towards a

destination which in turn presents better social and economic conditions.

Q2. What is economic development ?

A2. It is a long term process in which there is an increase in the per capita income
and the economic welfare of the people. It leads to an increase in the availability of
goods and services to the people by ensuring that the rate of increase in production
of goods and services is greater than the rate of increase in population.Two
indicators of measuring economic development are :

● Per capita income

● National income

Q3. What are some of the common developmental goals ?

A3. Development involves certain goals or aspirations and the way in which we
achieve these goals . Some of these goals are:

● Access to essential things in life.

● Making life better for all.
● Bringing about more equality.
● Helping people to live peacefully.

Q4. Do the following two statements mean the same ?

A. People have different developmental goals.

B. People have conflicting developmental goals.
A4. Both statements are true, but both mean different things. Different persons are
placed in different life situations. Hence their notions of development are different.
For eg. a person who is poor looks for basic means of subsistence whereas
developmental goal of farmers who depend only on rains for growing crops is better
irrigation facilities.

At times, 2 persons or group 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 and more dams to be
built 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. Thus development goals of different people may be
different as well as conflicting.

Q5. Why do different persons have different notions of development? Which of the
following explanations is more important and why?

A. Because people are different ?

B. Because life situations of persons are different ?

A5. B.Life situations of persons are different.

Development is all about aspirations and ambitions. A person with no means or

resources would seek to gain his basic subsistence, if successful, he will look for
comforts initially and some luxuries subsequently.

So persons placed in different life situations will have a different view of

development or progress.

Q6. Give some examples where factors other than income are important aspects of
our lives.

A6. One common development goal of people is that they want more income.

More income means more material goods and more comforts but material goods
alone are not enough. Our quality of life depends other things such as :

● Freedom
 ● Security
● Respect of others
● Equal treatment
● Job satisfaction

Non material goods are equally important even though they cannot be measured as
they improve the quality of our life.

Q7. What do you understand by National Development ?

A7. National development is the development of a nation as a whole.

It includes answers to questions. Like :

1. Are all ideas about development equally important ?

2. How can conflicts be resolved ?
3. Does the idea about development benefit all or just a few ?
4. Is there a better way of doing things?
5. Different people have different and conflicting views about a country’s
development.

Q8. How do we compare different countries or states ?

A8. We can compare the level of development of different countries or states by

comparing their income because more income means more of the things that we
need.

Accordingly, countries with higher incomes are more developed and countries with
low incomes are less developed.

TOTAL INCOME = INCOME OF ALL RESIDENTS OF A COUNTRY

Q9. Why Is total income not a useful measure to compare the level of development
between countries ?

A9. Total income is not a useful measure to compare the level of development of two
different countries because different countries have different populations.
For eg. if countries A and B have a National Income of RS.. 1000 crore per annum,
we cannot conclude that both of them are equally developed since population of
country A is 10 and population of country B is 50.

To overcome this problem we make use of per capita income or average income to
compare two countries.

PER CAPITA INCOME = TOTAL INCOME DIVIDED BY TOTAL POPULATION

Q10. What criterion is used by the World Bank in classifying countries ?

A10. In World Development Report, brought out by the World Bank following
criterion is used :

● Countries with per capita income of US$ 12056 per annum and above in 2017
are called rich countries.
● Countries with per capita income of US$ 955 or less are called low income
countries

India comes in the category of low middle income countries because its per capita
income in 2017 was just US$ 1820 per annum.

The rich countries excluding countries of the Middle East and certain other small
countries are generally called developed countries.

Q11. What are the limitations of using Per capita income ?

A11.

1. While average income is useful for comparison it does not tell us anything
about how that income is distributed. In other words, it hides disparities.
Refer to the eg. on page 9 in the box.
For example, the average income of both the countries are Rs 10000 but Country A
has a more equitable distribution of income.

2. Per capita income does not take into account other development indicators
such as health and educational status of the people. It only considers material
welfare.

Q12. INCOME AND OTHER CRITERIA :

While comparing different countries or states one looks at their per capita
income.however there are certain attributes that are equally important and need to
be taken into account :

Copy table 1.3 on page 10 in your notebooks :

Comparing the 3 states on the basis of per capita income, we find Haryana to be
most developed and Bihar to be the least developed state.

Let us consider some other attributes :

1. Literacy rate : this measures the proportion of literate population in the 7 and
above age group.
2. Infant mortality rate : this indicates the no. of children that die before the age
of one year as a proportion of 1000 live births in that particular year.
3. Net attendance ratio : this is the total no. of children of age group 14-15
attending school as a percentage of the total no. of children in the same age
group.
The above table shows Kerala is the most developed state if we take health and
education indicators for comparison.

Thus we cannot conclude on the basis of per capita income alone that one region is
performing better than the other. Other attributes are equally important and need
to be considered as well.

PUBLIC FACILITIES :

Q13. What are public facilities ?

A13. Public facilities are facilities that are provided by the government.

These comprise goods and services provided by the government or the community
for the welfare of its people either free of cost or at subsidised rates.

Q14. What are the reasons for Kerala’s better performance ?

OR
How is that average person in Haryana has more income than the average person in
Kerala but lags behind in these crucial areas ?

A14. Even though Haryana has a higher per capita income we find that Kerala is
doing better in crucial areas like health and education.
The reason for this is that money in your pocket alone is not sufficient to lead a good
quality of life.
For eg. Money cannot guarantee us a pollution free environment or ensure that you
get unadulterated medicines unless you can afford to shift to a community that
already has these things.
Money may also not be able to protect you from infectious diseases, unless the whole
of your community takes preventive steps.
The reason for Kerala’s better health and education indicators is that the
government makes adequate provision of basic health and education facilities to the
people.It also has a well functioning public distribution system.

BODY MASS INDEX :

Q15. What is body mass index ?

A15. One way to find out if we are properly nourished is to calculate what nutrition
scientists call Body Mass Index.

Q16. How is BMI calculated ?

A16. Calculate your height and weight. Take the weight in kgs. And height in
metres. Then divide the weight by the square of the height.

HUMAN DEVELOPMENT REPORT :

Q17. What is a Human Development Report ?

A17. The Human Development Report published by the UNDP (United Nations
Development Program) compares countries on the basis of educational levels of
people,their health status, and per capita income.

Q18. What is Human Development Index ?

A18. This term was first introduced by United Nations Development Program in the
year 1990 in its first human development report.
HDI is a composite measure of the achievements of a nation in terms of three
parametres :
Longevity : measured in terms of life expectancy,infant mortality rate
Knowledge or educational attainment : measured by literacy rate.
Standard of living :measured by per capita income.
All the 3 components related to a country are measured on a scale of 0 to 1. All these
are added and then divided by 3. The resultant number is the HDI of the country.
All the countries are ranked according to HDI. the country with HDI = 1 will be
ranked at the top and the country with HDI = 0 will be at the bottom. All other
countries will be ranked in between.

Q19. What is the need for HDI ?

A19. The need for HDI arises because per capita income is an inadequate measure
of the development of a country. HDI ensures that the well being of the people is the
most important aspect being studied. It is a human centric approach towards
development which makes it clear that development of health and educational
capabilities are more important than mere material(as shown by PCI) for leading a
healthy and good life.

SUSTAINABILITY OF DEVELOPMENT :
Q20. Define Sustainable Development.
A20. Sustainable Development is development that meets the needs of present
generations without compromising on the needs of future generations.

Q21. Why is the issue of sustainability of development important for development ?

A21. Development is a perennial process which goes on and on until we attain a
certain level of development.
However scientists have been warning since a long time that the present level of
development is not sustainable. This means that we might not be able to maintain
the present level of development for our future generations.
The reason for this is that in our hunger to develop,we have been over exploiting the
natural resources leading to serious environmental degradation.
Environmental degradation is not a nation specific problem since our future is
linked together.
Sustainability of development needs to be dealt together. Thus in order to ensure
sustainability of development we need to conserve the environment.

Q22. How many kinds of Natural resources are there in the environment ?
A22. Natural resources are of two types : Renewable resources and Non Renewable
resources.
Renewable resources :these are resources which can be replenished by nature as in
the case of crops and plants. However even these resources maybe overused. For eg.
in case of ground water, if we use more than what is being replenished by rain then
we would be over using this resource.
Non renewable resources are those which will get exhausted after years of use. There
is a fixed stock of these resources which cannot be replenished. For eg. crude oil

Q23. Why is groundwater overused?

A23. Groundwater depletion is a serious threat to the environment.
Majority of earth is made up of water. We see water in the oceans,seas, rivers, lakes
etc. But this water is not always safe for consumption and is difficult to filter than
groundwater. So water from ground is very valuable.
Groundwater is needed by humans and animals as well in order to survive.
With ever growing population,there is a constant need for groundwater,hence it is
overused.

Q24. can there be development without overuse ?

A24. Yes, it is possible to have development without overuse.
This is possible if we practice sustainable development which involves using of
resources judiciously.
Sustainable development means that today resources should be used judiciously so
that future generation too has their fair share of resources.
Promoting sustainable development can do a lot to preserve ground water levels.

Q25. Is crude oil essential for the development process in a country? Explain.
A25. It would be hard to imagine an economy developing without oil and natural gas
because of industrialised economy on earth right now.
Crude oil contributes about 97% of energy for transport such as cars, trains,
airplanes etc.
Crude oil is necessary as without it no automobile, industries etc. run. It can
generate heat,drive machinery and fuel vehicle etc. So it is the most important raw
material of industrialised nations.
Q8. from book
Electricity,coal,crude oil,cow dung,solar energy etc.
50 years from now-----ethanol, biodiesel, nuclear energy and a better utilisation of
wind energy.
Q10. from book
This statement is relevant to the discussion of development since both resources and
development go hand in hand.
For sustainability of development maintenance of resources is also crucial.
As the statement claims, Earth has enough resources--renewable and non
renewable---to satisfy everyone’s needs; however these need to be used with a view
to keeping the environment protected and clean so that a balance of production and
use is maintained and shortages are avoided.

Q11 from book

Deforestation , falling levels of groundwater,soil erosion, water pollution,burning of
fossil fuels,hole in ozone layer and combustion from automobiles causing extreme
air pollution especially in urban areas are some examples of environmental
degradation.

Revision
Chapter 1
Development

Q1. Select an appropriate answer.

A. Development involves:

1. More income
2. Better health
3. Better education
4. All of the above

Ans.4. All of the above

B. A common goal that most of the people have is:

1. More leisure
2. More income
3. More power
4. None of the above
Ans.2 . More income

C. Literacy measures the proportion of literate population of age

group :
1. 5 and above
2. 14 and above
3. 7 and above
4. 9 and above
Ans.3.7 and above

D. The world development report compares country on the basis of :

1. Educational level
2. Health status
3. Per capita income
4. All of the above
Ans. 3. Per capita income

E. Which Indian state has the lowest mortality rate?

1. Bihar
2. Kerala
3. Punjab
4. Himachal Pradesh
Ans. 2. Kerala

F. Average income= Total Income

1. Population
2. Total income
3. Per capita income
4. None of the above
Ans. 1.Population

G. If per capita income were to be used as a measure of development,

which of the following state will be considered as most developed.
1. Haryana
2. Bihar
3. Odisha
 4. Assam
Ans. 1.Haryana

H. Example of non renewable resource is:

1. Ground water
2. Wind Power
3. Petroleum
4. Solar Power
Ans. 3.Petroleum

I. Countries with per capita income less than$955 per annum are
called:
1. Rich countries
2. Middle income countries
3. Outdated countries
4. Low income countries
Ans. 4. Low income countries

J. Resources which can be replenished by nature are called as:

1. Man made resources

2. Fossil fuels
3. Non renewable resources
4. Renewable resources

Ans. 4. Renewable resources

Q 2 . Fill in the blanks.

1. Development is a situation that fulfills the ________ of people. ( need/

aspirations)
2. Two persons or group seek things which are ________. (destructive/
entertaining)
3. Our quality of life also depends on _______ (food/ non material goods)
4. People always look at ______ of goals. ( good/ mix)
 5. Per capita income hides ________ in income. (equality/ disparities)
6. _________ is the total number of children of age group 14 to 15 years
attending school as a % of total no of children in the same age group . (Net
attendance ratio/ Literacy ratio)
7. ________ has half the per capita income of India yet it is not far behind India
in terms of India in life expectancy. ( Bhutan/ Nepal)
8. Prefixing the term _______before development has made it clear that it is the
well being of citizens which is most important. (woman/ human)
9. __________ is that process of economic development which aims at raising
the quality of life of both present and future generations. (Sustainable
development/Constant development )
10. ________ is an example of environmental degradation. (Use of paper bag/
Deforestation)

Q3. Match the following.

1. A girl from rural family a. Ensure safety of citizens

2. UNDP uses b. Wants to go to school and enjoy

3. Landless labourer c. Human development Index

4. HDI stands for d. Longevity , educational level and health

status as indicators of development.

5. An immediate goal of Government e. More days of work and better wages.

6. Infant mortality f. May offer regular employment and

enhances sense of security.

7. Different people can have g. indicates the no of children dies before

one year

8. A job may give you less pay but h.pollution free environment.
 9. Rich countries are the countries with I. different developmental goals.

10.Money cannot buy us j.per capital income of $12056 per annum

Answers

1. B 2. D 3. E 4. C 5. A 6. G 7. I
8. F 9. J 10. H

Q 4. True / False
1. Non material goods cannot be measured so they are not important.
_________
2. As individual goals are different then notion of national development will also
be different. ________
3. Total income is equal to income of all the residents of the country
_________
4. Per capita income never leads to faulty conclusions.
_________
5. India ranks 73 in HDI out of 189 countries.
_________
6. Health and education form an integral part of development.
_________
7. The reserves for oil would last only 40 years if people continues to extract it at
the present rate.
________
8. The PDS has been designed to make food accessible, available and affordable
to the people.
_________
9. The Earth has enough resources to meet the needs of all and also enough to
satisfy the greed of a person.
_________
 10. The developmental goal of a rich boy is to eat food.
_________

Answers

1. False 2. True 3. True 4. False 5. False

6. True 7. True 8. True 9. False 10.

False

Q 5. Very short questions.

1. Define development.
2. What are the two features of development discussed in this chapter ?
3. Explain any two factors on which the quality of life depends.
4. Name the states in India where ground water is overused.
5. What can be the developmental goal of farmer who is dependent on rainfall?
6. Who publishes Human Development Report ?
7. Define life expectancy.
8. Why per capita income is calculated in dollars?
9. How is sustainable development possible?
10. What are the two indicators of Economic Development?

ANSWERS

1. Development is a situation that fulfill the aspirations or desires of people.

2. a. Different persons can have different developmental goals. b.Development of
one may not be development for other.
3. Quality of life depends on Equal treatment, Security
4. Punjab & Haryana
5. To have better irrigation facilities or to have modern techniques of irrigation.
6. United Nations Development Program.
7. It denotes average expected length of life of a person at the time of birth.
8. It is calculated in dollars so that countries can be compared easily.
9. Sustainable development is possible when we use the resources judiciously
 10. The two indicators of economic development are national income and per
capita income.

Q6. Other Questions

1. What are the limitations of per capita income?
2. Is income an important criterion for development?
3. Distinguish between two types of natural resources.
4. What is the need of HDI
5. Why is Kerala doing better in crucial areas?
6. Explain the common, conflicting and different goals by giving suitable
examples.
7. Give examples to show that people look at mix of goals.
8. Which criterias other than per capita income are used to compare different
countries?

MULTIPLE CHOICE QUESTIONS :

1. Things like equal treatment, security, freedom and respect of others are:
a) Material things c) Income
b) Non material things d) Growth
2. Literacy measures the proportion of literate population of age group:
a) 5 and above c) 14 and above
b) 9 and above d) 7 and above
3. Which Indian state have highest mortality rate:
a) Punjab c) Uttar Pradesh
b) West Bengal d) Bihar
4. Assume there are four families in a country. The average per capita income of
these families is Rs. 5000. If the income of three families is Rs. 4000, Rs. 7000 and
3000 respectively, what is the income of fourth family?
7500 c) 2000
3000 d) 6000
5. Your friend is 150 cm tall and have weight of 40 kgs. What will be his BMI?
a) 18.5 c) 20
b) 17.7 d) 19.6
6. How many countries are included in HDI ranking?
a) 180 c) 177
 b) 174 d) 189
7. Per Capita Income of a country is:
a) Total population X Total income c) Total income ÷ Total population
b) Total population X 100 d) Total expenditure X 100
8. Which is the most important attribute while comparing countries?
a) Population c) Political status
b) Income d) None of the above
9. Using per capita income as a measure of development, which of the following
states would be considered the most developed?
a) Kerala c) Punjab
b) Bihar d) Odisha
10. HDI stands for:
a) Heavy Development Industry c) Human Development infrastructure
c) Human Development Index d) Housing Development Index

FILL IN THE BLANKS

1. Human Development Report published by _________ compares countries based
on educational levels of people, their health status and ________ .
2. ______________ indicates the number of children that die before the age of one
year as a proportion of 1000 live births in that particular year.
3. The World Bank has classified the counties in _______ categories.
4. Countries with per capita income of ________ per annum and above are called
rich countries.
5. The _________ region of the world has highest reserves of crude oil.
6. The developmental goals of different people are different and __________ .
7. A country in India’s neighbourhood but much ahead of India in all aspects of
human development is _________ .
8. The per capita income level of middle-income countries as per World bank report
2013 is ______ .
9. The other name for average income is ____________.
10. The state in India that has lowest Literacy Rate is ____________.

TRUE/FALSE
1. World Bank uses the criterion of health and educational status for measuring
development.
2. If BMI is below 18.5, the person is overweight and if it is over 25, the person is
undernourished.
3. Development for one may not be development for another.
4. India has better performance in terms of Human Development than Sri Lanka.
5. The development goal of a landless farmer is to settle his children abroad.
6. The per capita income of all the countries is calculated in dollars
7. Kerala has lower literacy rate than Uttar Pradesh.
8. UNDP uses longevity, educational attainment and per capita income for
measuring development.
9. National income is the total income of all the residents of a country.
10. The Earth has enough resources to meet the needs of all but not enough to satisfy
the greed of person.

VERY SHORT ANSWER

1. Mention any one development goal of landless rural labourers.
2. Explain any two factors on which the quality of life depends.
3. How is average income of a country calculated?
4. Define Net attendance Ratio.
5. How does Human Development Report compare the countries?
6. Name the states of India where groundwater is overused?
7. Name the institution which publishes Human Development Report.
8. Mention few non material benefits that increase welfare of population.
9. What are the indicators of Human Development Index?
10. Which criterion is used in World Development Report in classifying countries.