Chapter 1-1. ONE MARK QUESTIONS Q: What is economic growth

Chapter 1Chapter-1.ONE MARK QUESTIONSONE MARK QUESTIONS

Q: What is economic growth?

A process where by real percapita income increases over a long period of time.g p


Q: what is economic development?

Economic Growth coupled with the structural changes in the Economy.y


Q: What is dual economy?

Co‐existence of both ancient and modern technologies in the economy.y


Q: Who used the term ‘sustainabledevelopment’ for the first time?

d l dBrundtland Commission.


Q: Write the formula to find PQLl.

LEI IMI BLILEI+IMI+BLI3

PQLI =


Q: What is the meaning of humandevelopment index?

f hMeasurement of human development through longetivity, health and education, and standard of life of the people.p p


Q: Write the formula to find HDI.

LEI+EAI+SLIHDI LEI+EAI+SLI3

HDI =


Q: What is primary data?

Data which is originally g ycollected by an investigator for the first timethe first time.


Q: Write the meaning of secondary data.

D t hi h i l d ll t dData which is already collected by others.

Chapter-1.ONE MARK QUESTIONSQ: Mention the sources of secondaryQ: Mention the sources of secondary

data.A) PUBLISHED SOURCESA) PUBLISHED SOURCES :‐i) Govt. and non‐govt. orgns. ii) Private agencies.iii) Records of various depts..

Business enterprises, researchreports.reports.

Chapter-1.ONE MARK QUESTIONSQ: Mention the sources of secondaryQ: Mention the sources of secondary

data.A) PUBLISHED SOURCES :‐A) PUBLISHED SOURCES :‐i) Govt. and non‐govt. orgns. ii) Private agenciesii) Private agencies.iii) Records of various depts..

Business enterprises researchBusiness enterprises, researchreports.

B) Un p blished Reports & RecordsB) Un published Reports & Records


Q: What is time series data?

D t ll t d thData collected on the same entity with different time period.


Q: What is cross ‐section data?

D t ll t d diff tData collected on different entities for a single time period.


Q: What is survey data?

D t ll t d th hData collected through survey or sample or enquiry. Ex. Exit poll survey.


Q: What is census data?

R d f h d itRecord of each and every item of the Universe. Ex. Census once in every ten years.


Q: What is census data?

R d f h d itRecord of each and every item of the Universe. Ex. Census once in every ten years.


Q: What is a Table?

Systematic arrangement ofStatistical data in columns &Rows.


Q: What is Bar‐Diagramme?

P t ti f d t ith thPresentation of data with the help of equidistant rectangles.


Q: What is Pie‐Diagramme?

Representation of data in the form of a circle which includes different segmentsdifferent segments.


Q: What is Structural AdjustmentProgramme?

Th i iThe micro economic measures or policies adopted by the govt. to bring the changes in the structure of the economythe structure of the economy.


Q: What is stabilization programme?

Measures to maintain balance and to avoid higher variations in the economyin the economy.


Q: When was New Economic Reformsintroduced?

In the year 1991


Q: What is Globalisation?

Opening up of the Indian economy to world market by attaining Internationalattaining International competitiveness.


Q: Give the meaning of Privatisation.

Sale of Govt. owned equity in Nationalized industries or other commercial enterprisesother commercial enterprises to pvt. Investors.


Q: What is Liberalisation?

Removal of controls and hurdles imposed by Govt. on the economy.the economy.

TWO MARKS QUESTIONS

Q: Mention any four differences betweeni th d d l teconomic growth and development.

GROWTH DEVELOPMENT• Quantitative• Measurement in

• Qualitative• In terms of

terms of PCI.• Macro Economic

National Income.• Micro Economic

study.• Narrow concept.

study.• Wider concept.p p

TWO MARKS QUESTIONS

Q: Mention the features(objectives)of sustainable developmentof sustainable development.

• Accelerating economic growth.• Meeting the basic needs.• Improving the living standard.p g g• Maximising the net benefits of economic developmenteconomic development.

• Inter‐ Generational‐Equity.• Clean environment Protection• Clean environment Protection

TWO MARKS QUESTIONS

Q: Mention any four features ofdeveloped countriesdeveloped countries.

• High Per‐capita and National Income.• Higher Industrialization.• Higher capital formation.• Low level of Poverty and Unemployment.• Low Growth of Population.

h l l f h l• High level of Technology.• Large Scale production of goods andservices. Etc.,

TWO MARKS QUESTIONS

Q: What is the meaning of ‘developedcountry’? Give examplescountry ? Give examples.

A Developed country is one which has achieved maximum economicdevelopment, where there is high PCI, p , g ,High Standard of living and Natural Resources are completely utilized ExResources are completely utilized. Ex. USA, UK, AUS, CANADA, GERMANY EtcEtc.,

TWO MARKS QUESTIONS

Q: What are ‘developing countries’? Give examplesGive examples.

A Developing country is one which is achieving progress in economic, social and other sectors by using its y gnatural resources. Ex. India, China, Brazil etcBrazil, etc.,

TWO MARKS QUESTIONS

Q: List the differences between primaryand secondary dataand secondary data.

PRIMARY DATA• Original

SECONDARY DATA• Not Original• Original.

• Collected for thefirst time.

• Not Original• Already collected byothers.

• They are like Rawmaterials.

• Like final goods• Cheap and easy.

• Collection is costly.• Less reliable.• No extra care is

• More reliable.• Extra care is must inuse• No extra care is

needed.use.

TWO MARKS QUESTIONS

Q: Name the parts of a Table.

1. Table No.2. Title.2. Title.3. Captions and Stubs.4 Body of the Table4. Body of the Table.5. Head Note6 F t t6. Foot note.7. Source note.

TWO MARKS QUESTIONS

Q: State the structural adjustmentprogrammesprogrammes.

1. Industrial De‐regulation. g2. Dis‐lnvestments.3 Public enterprises reforms3. Public enterprises reforms. 4. Trade and capital inflow

f Etreforms. Etc.,

TWO MARKS QUESTIONS

Q: Name the stabilization programmes.

1.Fiscal sector reforms. 2 Financial sector refirms2. Financial sector refirms.3. Foreign exchange rate policy

freforms. 4. Wage and Income policy reforms.

FIVE & TEN MARKS QUESTIONS

Q: Why is India Called a developingeconomy?economy?

The following changes in theThe following changes in the Indian economy over the last 60 years clearly prove that India is ayears clearly prove that India is a developing economy:‐



India’s Net National ProductIndia s Net National Product (NNP) at factor cost (national income) was Rs 1 32 367 crore inincome) was Rs.1,32,367 crore in 1950‐51 and it has increased to

iRs.64,66,860 crores in 2010‐2011



There is a rise in PCI fromThere is a rise in PCI from Rs. 3,687 in 1950‐51 to Rs. 54,527 in 2010‐2011.



The share of tertiary sectorThe share of tertiary sector (service sector) in the gross domestic product has increased from 27.5% in 1950‐51 to 57.7% in 2010‐11



There is continuous rise in agricultural production and India has achieved the stage of self‐has achieved the stage of selfsufficiency in terms of food grains. It is also able to build up bufferIt is also able to build up buffer stocks of food grains for lean

i dperiods.



At present there is growth of basic capital goods industries. A large number of industries have been developed in large scale like iron and steel, heavy chemicals, nitrogenous, fertilizers heavy engineering, machine tools, aluminum, petroleum products. Etc.



There has been substantial progress in science and technology. Sophisticatedtechnology. Sophisticated machines and instruments are produced within the country withproduced within the country with the indigenous scientific and

h i l k htechnical know‐how.



There has been a considerable improvement in the provision of infrastructural facilities andof infrastructural facilities and social security services.



Transport and communication facilities have been extended and there has been aand there has been a remarkable improvement in power supplypower supply.



Banking and financial facilities have been expanded.

O th l t 60 th i liti iOver the last 60 years, the inequalities in the distribution of income and wealth h b d d th h ihave been reduced through progressive taxation, increased public expenditure,

i l it tsocial security measures etc.


Q: Why is India called a developingeconomy?economy?

There have been desirable changes in the society over the last 60 years because of urbanisation and the spread of education. The caste system, untouchability and superstitious beliefs are on the decline.


Q: Explain Economic Reforms of MainSectorsSectors.

The economic reforms introduced by the Government of India since July 1991 may be discussed under the following sectors. a: Fiscal sector reforms b: Industrial sector reforms c: Financial sector reforms d: Public sector reforms e: External sector reforms


a: Fiscal sector reforms

• Exemption limit of income tax has increased to Rs. 1,60,000 per year

• Reduction of the rate of income tax from 40% to 30%.

• Reduction of corporation tax on domestic companies to 30%.

• Reduction of export import tax from300% to 58%.


• Five yeas tax holiday has been introducedf f d ll dfor infrastructure and small Industries.

• New incentives to tax savers.d d f• Increasing service taxes and reduction of

subsidies,id i h b b i• Widening the tax base to bring more

revenue to the government f i hd l ffor ex:‐ withdrawal tax of 2005.

• Introduction of Value Added Tax.


b: Industrial sector reforms Ab li i f li i d lif i ll• Abolition of licensing system and lifting allrestrictions on private industries.R d ti f bli t i d t i t• Reduction of public sector industries to only 3 areas and all other Industries are leftt i t t Thi bi b t fto private sector. This gave a big boost forthe growth of private sector in India.F i di t i t t li it i d• Foreign direct investment limit was raisedfrom 40% to 51%


b: Industrial sector reforms Gi i t ti l f f i• Giving automatic approval for foreigntechnology agreements.

• Government brought several changes• Government brought several changesin the MRTP Act.

• Special incentives have been given forp gexport industries.

• Encouraging private industries ininfrastructure sectors.

• Government allowed 100% foreigninvestment in selected industriesinvestment in selected industries,


c: Financial sector reforms • Liberalising the restrictions on banks and othergfinancial institutions.

• Deregulation of lending rates and givingfreedom for banks.

• Progressive reduction of CRR & SLR• Giving complete autonomy to public sector banks• Giving complete autonomy to public sector banks.• New generation private banks and foreign insurance companies are allowed to functioninsurance companies are allowed to function parallel with public sector banks.

• Empowerment of securities and exchange board of India (SEBI)


d: Public sector reforms • The number of industries reserved for public p

sector have been reduced form 17 to 3 • The major sick industries will be

either closed or transferred to private sector.• Selling the shares of public sector

industries to private people.• Government has introduced VRS

d i f b d• Reduction of budgetary support to public sector industries.


e: External sector reforms • Reduction of import taxes from 300%Reduction of import taxes from 300% to just 58%.

• Full convertibility of rupee in the currentFull convertibility of rupee in the currentaccount has been introduced to promoteexports.exports.

• Quota system has been abolished and bi‐lateral trade agreementsand bi lateral trade agreements have been encouraged.

• Setting up of SEZs to encourage exportsSett g up o S s to e cou age e po ts

Documents

Chapter 1-1. ONE MARK QUESTIONS Q: What is economic growth