Inter Economics Important Questions

Following are model questions and answers for Senior Inter Economics Unit 3 (Population and Human Resource Development). The Intermediate Second Year students from Andhra Pradesh can practice these model / practice questions to get good marks in the final IPE examinations.

1. Explain the theory of demographic transition.

Ans: Development of any country depends on the quantity and quality of human resources i.e. population. There are two important theories on population. They are demographic transition theory and optimum theory of population.

THE THEORY OF DEMOGRAPHIC TRANSITION:

The theory of demographic transition explains the relationship between birth rates, death rates and economic development. It was explained by T.R. Malthus.

According to this theory, every country passes through three stages of demographic transition. They are:

First Stage: This stage is characterized by high birth rates and death rates. Poor diet, absence of medical facilities, social beliefs etc. are the reasons for it. Hence the population is more or less stable. This stage was prevailed in India before 1921.

Second Stage: This stage is characterized by high birth rates and low death rates, hence there is a rapid growth of population. Improvement in the standard of living, diet condition, medical facilities etc reduce death rates and low level education, social backwardness etc. results in high birth rates. This stage was prevailing in India since 1921.

Third Stage: In this stage the death and birth rates were controlled due to the development of economy. Hence the population is optimum level. Many developed countries are in this stage.

2. What are the reasons for population explosion in India? List out measures.

Ans: Population of India

As on 2011, November 1 total population of India is 121 crores. It is 17 per cent of world population with 2.4 per cent share of land area of the world. According to 2011 census, the sex ratio is 940 : 1000 and density of population is 382 persons per square km in India. India’s population growth rate was rapidly increased after 1921. So 1921 is known as great dividing year of population.

Population Explosion in India

When birth rates exceeds death rates during a particular period of time is called population explosion. Now India is suffering with population explosion. High birth rates and low death rates are the reason for it.

Causes for Low Death Rates:

Eradication of famines: After independence, government of India controlled famines and droughts through various policies and minimised mortality rate.

Control of epidemics: The epidemics such as Malaria, Cholera, Small fox etc. were controlled and reduced the death rates.

Other Factors: Improvement in standard of living, safe drinking water, education, expanded medical facilities etc. reduced the mortality rate.

Causes for High Birth Rates:

Predominance of agriculture: In an agrarian economy, even every child of the family considered as labour, they wish to have more children.

Slow Urbanisation: The process of urbanisation in slow in India and it has failed to generate social forces which control birth rates and promote small families.

Universality of marriage: Marriage is both a religious and social necessity in India. It leads to high birth rates.

Early marriage: Women in India are getting marriage at quite young age. It prolongs the child bearing period.

Religious and social beliefs: Most of Indians desire to have more children as a social and religious belief even they do not have economic power. They treat every child as a god gift.

Joint family system: In a joint family system, the total economic burden carried by earning members only and not by young couples. They get children even they have no financial capacity.

Measures to control population explosion:

1. Expansion of industrial sector
2. Removal of poverty
3. Development of education
4. Improving women status
5. Raising minimum age of marriage
6. Family planning programmes
7. Incentives and disincentives
8. Establishment of family planning centres etc

3. Elucidate the new population policy – 2000 of India.

Ans: Population Policy – 2000

To control population growth, the govt. of India has announced a policy on population in the year 2000 to stabilize the population by 2045.

Main features:

1. Reduce MMR to below 100 per 1 lakh live births
2. Reduce IMR to below 30 per 1 thousand live births
3. Universal immunisation against all preventable diseases
4. To achieve 100 percent safe deliveries in hospitals
5. Access to information regarding AIDS, prevention and control of communicable diseases.
6. Incentives to adopt two-child small family norms
7. Strict enforcement of child marriage restraint act
8. Raising the age of marriage for girls not earlier than 18 years and for boys 20 years
9. Special reward for women who marry after 21 years and apted birth control methods after 2 children
10. Health insurance coverage for BPL families who undergo sterilization after having 2 children

4. Explain the Occupational Distribution of population in India.

Ans: It refers to the number or ratio of workforce participation among various occupations in the country. Occupations are classified into three categories. They are

Primary Sector / Occupations:

Agriculture, forestry, fishing, animal husbandary, poultry, plantation etc. are collectively known as primary occupations. At present 56.7 per cent in India and 64.6 per cent of labour force is engaged in A.P. in this occupations.

Secondary Occupations:

Activities related to manufacturing industries including small scale, cottage, medium and large scale industries are collectively known as secondary occupations. 17.6 per cent in India and 13 per cent of labour force engaged in A.P. in this occupations.

Tertiary Occupations:

Trade, transport, communication, banking, education, health and other services are collectively known as tertiary occupations. 25.7 percent in India and 22.4 per cent of labour force engaged in A.P. in this occupations.

5. Explain the various Health Indicators.

Ans: Health indicators play an important role in the development of human resources. There are three indicators.

Life expectancy: It refers to the number of years an average a person can live. It is 63.9 years for males and 66.9 years for females in India.

Maternal Mortality Rate: It refers to number of delivery deaths among 1 lakh women in a year. It is 301 per 10,000 live births in India.

Infant Mortality Rate: It refers to the ratio of the number of deaths among the 1000 born child in a year. It is 63 per 1000 in India.

6. Explain about NRHM.

Ans: National Rural Health Mission (NRHM):

This programme was introduced in 2005 to increase access and utilization of quality health by strengthening health infrastructure.

Objectives:

1. To provide over 5 lakh ASHA workers per 1000 population by 2008.
2. To make it function nearly 1.75 lakh sub centres 2 ANMs by 2010.
3. To provide 24 hours services in all PHCs with 3 trained staff nurses in all days by 2010.
4. To establish 6500 Community Health Centres with 7 specialists and 9 staff nurses by 2012.
5. To establish 1800 Taluk hospitals and 600 district hospitals by 2012.
6. Provide Mobile Medical Units for each district by 2009.

National Urban Health Mission (NUHM): It was introduced in 2005 to meet the health needs of urban poor making available primary health care services to them. It will cover all cities with a population of 1 lakh.

Janani Suraksha Yojana (JSY): It was launched in 2005. Its main objective was to encourage pregnant women for safe institutional delivery, which reduce MMR and IMR. It was 100 percent centrally sponsored programme, focussing on both maternal and child health.

7. What are the health programmes implementing in A.P.

Ans: Health Programmes in A.P.

1. The family planning programme was started in 1951 focusing on women and child health.
2. The child survival and safe motherhood programmed introduced in 1992-93.
3. Launched NRHM in 2005 to increase quality of health.
4. The 24 hours mother and child health programme was started in 1997-98.
5. Family Planning Insurance Scheme introduced in 2000 to provide insurance.
6. Janani Suraksha Yojana (JSY) was started during 2005-06.
7. Rogi Kalyan Samithi was introduced in 2006 to improve, upgrade and modernise hospitals.
8. Rural Emergency Transport Scheme (108) started to ensure easy access to hospital for rural people.
9. Govt. of A.P. has been implementing ‘Arogya Sree’ scheme from 2007.

8. Explain the role of education in economic development.

Ans: Role of education in economic development:

Education is an instrument to convert a man into complete man. According to Todaro and Smith, education contributes more to economic growth in all countries.

– Education promotes economic growth and development.
– Education reduces the income inequalities.
– Education plays important role in rural development.
– Education helps in modernizing and revolutionizing way of thinking and promotes family planning.
– Provide required skilled man power to the economy.
– Promotes health conditions.
– Promotes political stability and competent leadership.

Sarva Siksha Abhiyan (SSA): It was introduced during 2001-02 with an aim to provide universal elementary education for all children in the age group of 6 to 14 years by 2010. It intends to fill up social, regional and gender gaps. It has been renamed as ‘RAJIV VIDYA MISSION’ in Andhra Pradesh.

Following is the study material and important questions for Senior Inter Economics for Andhra Pradesh Board students. The material and questions are from Unit – I of the lesson – Economic Growth and Economic Development.

1 Q: What are the differences between Economic Growth and Economic Development?

The problems of developed and under developed countries are not same in nature. To discuss and elevate such problems we use the terms Economic Growth and Economic Developed. Though they synonyms each other, they are quite different in meaning in economic literature.

Economic Growth: The increase in real output of goods and services of the economy is called as “Economic Growth”. It indicates only quantitative changes of the economy. This concept is related to developed countries.

Economic Development: The overall progress of the economy along with institutional and technological changes is called as “Economic Development. It indicates both quantitative and qualitative changes of the economy. This concept is related to under developed countries.

Difference between growth and development:

Economic Growth – Economic Development:
1. It indicates only qualitative 1. It indicates both qualitative changes. and quantitative changes.
2. It is a uni-dimensional concept. 2. It is multidimensional concept.
3. It is a narrow concept. 3. It is a broad concept.
4. Govt. play nominal role in 4. Govt. play dominant role in this concept. this concept.
5. It is related to developed countries. 5. It is related to under developed countries.
6. It is a short run process. 6. It is a long run process.

2 Q. Explain the factors that determine economic development?

Factors Determining Economic Development:

1. Natural resources: According to Jacob Viner, Bawmol and W.A. Lewis, a country’s developed is determined by natural resources like fertility of soil, irrigation, mineral like coal, petroleum etc.

2. Capital Formation: Increase in the net stock of the capital is called as capital formation. It helps to create sound infrastructure and enlarges the productive capacity.

3. Marketable Surplus: The excess amount of output available in agricultural sector after meeting the basic needs of rural people is called as marketable surplus. More marketable surplus leads to economic development.

4. Foreign Trade: Foreign trade provide sufficient investment, technology, managerial abilities and enlarge the market. so it is described as an engine of growth.

5. Human resources: Population of the country is called as human resources. The quality population of any country provide skilled and efficient labour and managerials.

6. Technical progress: The availability of latest and sophisticated technology minimise cost of production, maximise output and change the social atmosphere.

7. Political freedom: If any country is under the rule of other country, they may be exploited and forced to remain backward. So political freedom is essential for economic development.

8. Desire to develop: Richard T. Gill says that, the economic development is not a mechanical process but it depends on the skills, quality and attitudes of the people.

Classification of the Countries:

World Bank classified the countries of the world on the basis of per capita Gross National Income. (As per WDR-2008)

Sl. No. Category Range of GNI

1. Low Income Countries – Below 906 dollars
2. Middle Income Countries – $ 907 – $11115
3. High Income Countries – $ 11116 and above

3 Q. What are the features of developed Countries?

DEVELOPED COUNTRIES: The countries with high Per Capita Income are called as developed countries. They are also called as industrial and emerging economies. According to World Development Report (2008), they have 16 percent of world population with 77 percent world GNI. Eg: USA, UK, Switzerland.

CHARACTERS:

1. High Per Capita Income: Developed Countries Possess higher per capita as well as gross National Income.
Eg: The PCI of switzerland is $65330, USA is 47,580.

2. Importance of Non-agricultural Sector: In developed countries non-agricultural sector (industry & Services) provide
more share to GDP and employment for majority of population. Eg: In U.S.A. industrial sector provide 22 percent Service Sector provide 76 percent share in GDP and employment for 96 percent population.

3. High level Capital and Technology: Due to high level saving rates, investment and PCI, the developed countries are maintaining high level capital formation and technical progress.

4. Low level unemployment: There is very low level of unemployment in these countries due to the domination
of non-agricultural sector. We find cyclical and frictional unemployment is some extent.

5. Better Quality of Life: In these countries all citizens are ensured with minimum standard of life with
Social Security. There are low level death and birth rates, high level literacy rate etc. due to higher human capital.

4 Q: Explain the features of under developed countries with reference to India?

Under Developed Countries: According to Indian Planning Commission, An under developed country is characterised by the greater or lesser degree of un utilised or under utilised man power on one hand and unexploited natural resources on the other hand. These are also called as third world countries, agrarian economies and developing countries. They have 84 percent World population with only 23 percent of World GNI. Eg: India, Srilanka etc.

Features with Reference to India:

1. Low Per Capita Income: Under developed countries have lower PCI due to low level savings and investment.
India’s PCI is $1070 which is 45 times less than that of USA.

2. Scarcity of Capital: In most of countries, the saving rates range between 15 to 20 percent. So, it leads
to low level capital formation. As per Ragnar Nurkse, many of these are in vicious circles of poverty due to scarcity of capital. Now India’s capital formation rate is 39 percent of GDP.

3. Demographic Characters: Many countries are suffering with population explosion, high level death rates,
birth rates, etc. 84 percent of world population is in developing countries only. As per 2011 Census, India’s population is 121 Crores, which is 17 percent of world population.

4. Unemployment: These countries are suffering with disguised and cyclical unemployment due poverty and market failure. In India disguised unemployment ranges between 15 to 20 percent.

5. Predominance of agriculture: In developing countries agriculture provide 20 to 30 percent of share in GDP and
employment opportunities for nearly 70 to 80 percent. In India agriculture provide 58 percent employment opportunities and 18 percent share to GDP.

6. High Incidence of Poverty: Most of under developed countries are suffering from high poverty levels along
with malnutrition, poor quality of life, ill-health and literacy. In India 19.3 percent people are living below poverty line.

7. Income inequalities: There are large inequalities in income and wealth distribution in these countries due to private ownership, tax evasion etc. It widens the gap between haves and have not’s.

8. Poor Quality of Life: In these countries there is low level literacy, income, health facilities, sanitation,
safe drinking water, life expectancy, etc… In India life expectancy is 63.4 years with 74 percent literacy rate.

9. Technological backwardness: Capital deficiency is the main reason for technical backwardness. There is a technological dualism in almost all sectors of the economy.

10. Density of Population: The average number of persons living per square kilometre area is called as density
of population. High density of population in these countries increase the burden on land and other resources. At present India’s density of population is 382 persons per square km. area.

Andhra Pradesh Economy:

Andhra Pradesh is the fourth largest state in area with 8.37 percent of land area of India and fifth largest state in terms of population with 8.46 crores. It posses 7 percent of India’s population with 1.06 percent growth rate. At present the sex ratio is 992 per 1000 males.

At present 59.7 percent of population in agriculture, 15.5 percent in industrial sector and 24.8 percent in Service Sector is engaged in Andhra Pradesh. AP is one of the largest states in India among high Per Capita Income States.

Important Questions:

Long Answer Questions: (10 M)

1. What are the factors that influence economic development?
2. Explain the features of developing countries with reference to India.

Short Answer Questions: (5 M)

1. Distinguish between Economic Growth and Economic Development.
2. What are the features of developed countries?

Very Short Answer Questions: (2 M)

1. Per Capita Income.
2. Economic Development.
3. World Bank’s Classification of Countries.
4. Dual Economy.
5. Marketable Surplus.