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Friday, February 27, 2015


Part A: Statistics for Economics Complete notes (50 Marks expected)
Q.1. What is economics? Who is called father of economics and statistics?
Ans: Economics is the science which studies human behaviour as a relationship between scare means and ends.
Adam smith is called father of economics.
Gottfried Achenwall is called father of statistics.
Q.2. Define the term Statistics. What are its Characteristics? Mention its Functions and Limitations.
Ans: Statistics: The word Statistics seems to have been derived from the Latin word “status” or the Italian word Statista.
By Statistics we mean aggregates of facts affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a predetermined purpose and placed in relation to each other.
Characteristics of Statistics:
(i) Statistics are aggregates of facts. (ii) Statistics must be numerically expressed.  (iii) Statistics should be capable of comparison and connected to each other. (iv) Statistics should be collected in a systematic manner. (v) Statistics should be collected for a definite purpose.
Importance of Statistics: Statistics is widely used in many fields.
a] Importance to the Government

Ø  Statistics is used in administration and efficient
Ø  functioning of departments. It collects data to fulfill its welfare objectives.
b] Importance of Statistics in Economics:
Ø  Statistics helps in making economic laws like law of demand and concept of elasticity.
Ø  It helps in understanding and solving economic problem.
Ø  It helps in studying market structure.
Ø  It helps in finding mathematical relations between variables.
Limitations of statistics are as follows:
(i) Statistics deals only with quantitative characteristics. (ii) Statistics deals with aggregates not with individuals. (iii) Statistical laws are not perfectly accurate. (iv) Statistical results are only an average.  (v) Statistics is only one of the methods of studying a problem. Statistical tools do not provide the best solution under all circumstances. (vi) Statistics can be misused.
Q.3. What are various types of Statistical Data? Mention their merits and demerits.
Ans: Statistical data are of two types
(a) Primary data
(b) Secondary data.
Primary Data: Data which are collected for the first time for a specific purpose are known as Primary data. For example: Population census, National income collected by government, Textile Bulletin (Monthly), Reserve bank of India Bulletin (Monthly) etc.
Secondary Data: Data which are collected by someone else, used in investigation are knows as Secondary data. Data are primary to the collector, but secondary to the user. For example: Statistical abstract of the Indian Union, Monthly abstract of statistics, Monthly statistical digest, International Labour Bulletin (Monthly).
Merits and Demerits of Primary Data:
(a) They are reliable and accurate. (b)  It is more suitable if the field of enquiry is small.
(a) It the field of enquiry is too wide, it is not suitable. (b) Collection of primary data is costly and time consuming. (c) Personal Bias may affect the data.
Merits and Demerits of Secondary Data:
(a) While using secondary data, time and labour are saved. (b) It may also be collected from unpublished form.
(a) Degree of accuracy may not be acceptable. (b) Secondary Data may or may not fit the need of the project. (c) Data may be influenced by personal bias.
Q.4. Distinguish between Primary data and Secondary data.
Ans: Difference between Primary Data and Secondary Data:
(a) Primary data are those which are collected for the first time and thus original in character. While Secondary data are those which are already collected by someone else.
(b) Primary data are in the form of raw-material, whereas Secondary data are in the form of finished products.
(c) Data are primary in the hands of institutions collecting it while they are secondary for all others.
Q.5. What are various sources of Secondary Data? Mention the points which should be considered before using secondary data.
Ans: Sources of Secondary Data:
(a) Official publication by the central and state governments, district Boards. (b) Publication by research institutions, Universities etc. (c) Economic Journals. (d) Commercial Journals. (e) Reports of Committees, commissions.
Precautions in the use of Secondary Data:
(i) Suitability: The investigator must check before using secondary data that whether they are suitable for the present purpose or not.
(ii) Adequacy: The investigator has to determine whether they are adequate for the present purpose of investigators.
(iii) Dependability. 
(iv) Units in which data are available.
Q.6. What are various essential qualities of Secondary data? Explain some effective methods of collecting primary data.
Ans: Qualities of Secondary Data:
(a) Data should be reliable (b) Data should be suitable for the purpose of investigator. (c) Data should be adequate (d) Data should be collected by trained investigator.
Methods of collecting primary Data
(a)  Direct Personal Observation: Under this method, the investigator collects the data personally from the persons concerned.
(b) Indirect Oral Investigation: - Under this method, the investigator collects the data from third parties capable of supplying the necessary information.
(c) Schedule and questionnaire: A list of question regarding the enquiry is prepared and printed and send to the person concerned.
(d) Local reports: - This method gives only approximate results at a low cost.
Q.7. What are various stages involved in statistical investigation? Explain them briefly.
Ans: Various stages in statistical investigation: There are five stages in a statistical investigation which are given below:
(i) Collection of Data.
(ii) Organisation of Data: Organising of data involves three steps which are (a) Editing of data (b) Classification of data according to some common characteristics and (c) Tabulation.
(iii) Presentation of Data.
(iv) Analysis: After collection, organisation and presentation, data are analysed.
(v) Interpretation: The last stage is interpretation which is a difficult task and requires a high degree of skill.
Q.8. What is Questionnaire? What are its essential characteristics?
Ans: Questionnaire: A Questionnaire is simply a list of questions in a printed sheet relating to survey which the investigators asks to the informants and the answers of the informants are noted down against the respective questions on the sheet.
Characteristics of an ideal Questionnaire:
(i) The Schedule of question must not be lengthy.
(ii) It should be clear and simple.
(iii) Questions should be arranged in a logical sequence.
(iv) The Units of information should be Cleary shown in the sheet.
Q.9. Define the term population and sample. What is sample and census survey? Distinguish between them.
Ans: Population and Sample
Population: Statistics is taken in relation to a large data. Single and unconnected data is not statistics. In the field of a statistical enquiry there may be persons, items or any other similar units. The aggregate of all such units under consideration is called “Universe or Population”.
Sample: If a part is selected out of the universe then the selected part or portion is known as sample. Sample is only a part of the universe.
Sample survey and Census Survey:
Sample survey: It is a survey under which only a part taken out of the universe is investigated. It is not essential to investigate every individual item of the Universe.
Census survey and complete enumeration: Under Census survey detail information regarding every individual person or item of a given universe is collected.
Difference between Census and Sample survey:
The following are the differences between Census and Sample method of investigation:
(a) Under Census method, each and every individual item is investigated whereas under sample survey only a part of universe is investigated.
(b) There is no chance of sampling error in census survey whereas sampling error cannot be avoided under sample survey.
(c) Census survey is more time consuming and costly as compared to sample survey.
(d) Census survey is an old method and it less systematic than the sample survey.
Q.10. Mention the Merits and Demerits of Census and Sample Survey.
Ans: Merits and Demerits of Census:
(a) Since all the individuals of the universe are investigated, highest degree of accuracy is obtained.
(b)  It is more suitable if the field of enquiry is small.
(a) It the field of enquiry is too wide, it is not suitable.
(b) Collection of data is costly and time consuming.
Merits and Demerits of sample survey:
(a) Time and labour are saved. (b) It may also be collected from unpublished form. (c) If secondary Data are available, they are much quicker to obtain than primary data.
(a) Degree of accuracy may not be acceptable. (b) Data may or may not fit the need of the project. (c) Data may be influenced by personal bias of investigator.
Q.11. What are various types of diagrams and graphs? Distinguish between diagrams and graphs. What are the uses and limitations of diagrams and graphs?
Ans: Types of diagrams and Graphs:
a) Simple Bar Chart b) Multiple Bar Chart or Cluster Chart c) Staked Bar Chart or Sub-Divided Bar Chart or Component Bar Chart d) Simple Component Bar Chart e) Percentage Component Bar Chart f) Sub-Divided Rectangular Bar Chart g) Pie Chart
Types of Diagrams/Charts:
a) Histogram b) Frequency Curve and Polygon c) Lorenz Curve d) Histogram  

Difference Between Diagrams And Graphs
a)      A graph needs a graph paper but a diagram can be drawn on a plain paper.
b)      As diagrams are attractive to look at, they are used for. Graphs on the other hand are more useful to statisticians and research workers for the purpose of further analysis.
c)       For representing frequency distribution, diagrams are rarely used when compared with graphs. For example, for the time series graphs are more appropriate than diagrams.
Uses of Diagrams and Graphs:
Diagrams and graphs are extremely useful due to the following reasons:
(i) Information presented though diagrams and graphs can be understood easily just in a bird’s eye view.
(ii) Diagrams and graphs produce a greater lasting impression on the mind of the readers.
(iv) They facilitate ready comparison of data over time and space.
However, graphic and diagrammatic presentations have some limitations:
(i)      Unlike a table a diagram or a graph does not show the exact value of a variable.
(ii)    Further, a limited set of facts can be presented through such devices like diagram and graph.
Q.12. What do you mean by index numbers? What are its features?     
Ans:  Index number is an indicator of changes in prices and quantities. It is a specialized average designed to measure the change in a group of related variables over a period of time. It is also an indicator of inflationary or deflationary tendencies. Following are the various feature of index number:
1. Measures of relative changes: - Index number measure relative or percentage changes in the variable over time.
 2. Quantitative expression: - Index numbers offer a precise measurement of the quantitative change in the concerned variable over time.
 3. Average: - Index number show changes in terms of average.
Q.13. Mention few uses of index numbers. Or why index number is called economic barometer? What are its limitations?
Ans: Advantages of index number
1. Measurement of change in the price level or the value of money. 2. Index number helps to ascertain the living standards of people. 3. Price index numbers serve as a useful guide to the business community in planning. 4. Index of exports and imports provides useful information regarding foreign trade.
Limitation of index number
1. Not completely true: - Index number not fully true.  2. International comparison is not possible 3. Limited use: - Index numbers are prepared with certain specific objective.
Q.14. what are the problems in the constructions of index numbers?
Ans:  Following are the main Problems in the construction of index number
1. Purpose of index number. 2. Selection of base year. 3. Selection of goods and services. 4. Selection of price 5. Choice of average (simple or geometric average). 6) Selection of appropriate weights. 7) Selection of appropriate formula (Fisher’s or Laspeyre’s).
Q.15.Define cost of living index number. What are the uses of cost of living index number?
Ans: - Cost of living index number (CLI):- Cost of living index numbers generally represent the average change in prices over a period of time, paid by a consumer for a fixed set of goods and services.
Uses of cost of living index:
1. CLI numbers are used for adjustment of dearness allowance to maintain the same standard of living. 2. It is used in fixing various economic policies. 3. Its helps in measuring purchasing power of money.  4. Real wages can be obtained with the help of CLI numbers.
Q.16. Which is the most ideal formula for constructing index no. and Why?
Ans: - Fisher’s index is regarded as ideal index because:-
i)           It considers both base year and current year’s price and quantity.
ii)          It satisfies both time reversal and factor reversal test.
iii)        It is based on Geometric mean which is theoretically considered to be the best average of constructing index number.
iv)        It is free from bias as it considers both current year and base year price and qty.
Q.17. Define Correlation analysis. What are its various kinds?
Ans: - Definition: - Correlation is the degree of the relationship between two or more variables. It does not explain the cause behind the relationship.
Kinds of correlation may be studied on the basis of:
(a) Linear correlation: - Correlation is said to be linear when one variable move with the other variable in fixed proportion
(b) Non-linear correlation: - Correlation is said to be non-linear when one variable move with the other variable in changing proportion.
(c) Simple correlation: - When only two variables are studied it is a simple correlation.
(d) Partial correlation: - When more than two variables are studied keeping other variables constant, it is called partial correlation.
(e) Multiple correlations: - When at least three variables are studied and their relationships are simultaneously worked out, it is a case of multiple correlations
Q.18.What are the uses and limitations of Correlation?
Ans: - Following are the main advantages of correlation:
1. It gives a precise quantitative value indicating the degree of relationship existing between the two variables.  2. It measures the direction as well as relationship between the two variables.  3. The effect of correlation is to reduce the range of uncertainty in predictions.
Following are the main limitations of correlation:
1. Extreme items affect the value of the coefficient of correlation.  2. Its computational method is difficult as compared to other methods.  3. It assumes the linear relationship between the two variables, whether such relationship exist or not.
Q.19. What are the different degrees of Correlation?
Ans: The different degrees of correlation are:                         
i)     Perfect Correlation: - It two variables vary in same proportion, and then the correlation is said to be perfect correlation.
ii)    Positive Correlation: - If increase (or decrease) in one variable corresponds to an increase (or decrease) in the other, the correlation is said to be positive correlation.
iii)  Negative Correlation: - If increase (or decrease) in one variable corresponds to a decrease (or increase) in the other, the correlation is said to be positive correlation.
iv) Zero or No Correlation: - If change in one variable does not other, than there is no or zero correlation.
Q.20. Explain Karl Pearson’s coefficient of correlation and spearmen’s rank correlation.
Ans: Karl Pearson’s Coefficient of correlation:  The Correlation coefficient (r), also called as the linear correlation coefficient measures the strength and direction of a linear relationship between two variables. The value of r lies between -1 to +1.
Spearman’s rank Coefficient of correlation: - This is a qualitative method of measuring correlation co-efficient. Qualities such as beauty, honesty, ability, etc. cannot be measured in quantitative terms. So, ranks are used to determine the correlation coefficient.
Q.21.What are the desirable properties of a good average and good measure of dispersion.
Ans: - The following are the important properties which a good average should satisfy:
a) It should be easy to understand. b) It should be simple to compute. c) It should be based on all the items. d) It should not be affected by extreme values. e) It should be rigidly defined.  f) It should be capable of further algebraic treatment.
Q.22.Define Arithmetic Mean (A.M). What are its properties? Explain its merits and demerits.
Ans: - Arithmetic Mean: - It is a value obtained by adding together all the items and by dividing the total by the number of items. It is also called average. It is the most popular and widely used measure for representing the entire data by one value. 
Properties of arithmetic mean:
1.       The sum of deviations of the items from the arithmetic mean is always zero i.e.  ∑(X–X) =0.
2.       The Sum of the squared deviations of the items from A.M. is minimum that is less than the sum of the squared deviations of the items from any other values.
Merits of A.M.:
Ø  It is simple to understand and easy to calculate.
Ø  It is affected by the value of every item in the series.
Ø  It is capable of further algebraic treatment.
Demerits of A.M.:
Ø  It is affected by extreme items i.e., very small and very large items.
Ø  It can hardly be located by inspection.
Q.23.Define Geometric Mean (G.M). Mention its merits and demerits. What are its Uses?
Ans:  G.M.:-It is defined as nth root of the product of n items or values. i.e., G.M. = n√ (x1. x2. x3 ……xn)
Merits of G.M.:-
Ø  It is not affected by the extreme items in the series.
Ø  It is rigidly defined and its value is a precise figure.
Ø  It is capable of further algebraic treatment.
Demerits of G.M.:-
Ø  It is difficult to understand and to compute.
Ø  It cannot be computed when one of the values is 0 or negative.
Q.24.Define Harmonic Mean (H.M). Mention its merits and demerits. What are its Uses?
Ans: - H.M.:- It is defined as the reciprocal of the arithmetic mean of the reciprocal of the individual observations.
Merits of H.M.:-
Ø  Like AM and GM, it is also based on all observations.
Ø  It is capable of further algebraic treatment.
Demerits of H.M.:-
Ø  It is difficult to understand and to compute.
Ø  It cannot be computed when one of the values is 0 or negative.
Q.25.Define Median. Mention its merits and demerits.
Ans: Median :- Median may be defined as the size (actual or estimated) to that item which falls in the middle of a series arranged either in the ascending order or the descending order of their magnitude. It lies in the centre of a series and divides the series into two equal parts. Median is also known as an average of position.
Merits of Median:-
Ø  It is simple to understand and easy to calculate, particularly is individual and discrete series.
Ø  It is not affected by the extreme items in the series.
Ø  It can be determined graphically.
Demerits of Median:-
Ø  It does not consider all variables because it is a positional average.
Ø  The value of median is affected more by sampling fluctuations
Ø  It is not capable of further algebraic treatment. Like mean, combined median cannot be calculated.
Q.26.Define Mode. Mention its merits and demerits.
Ans: - Mode: - Mode is that value a dataset, which is repeated most often in the database. In other words, mode is the value, which is predominant in the series or is at the position of greatest density. Mode may or may not exist in a series, or if it exists, it may not be unique, or its position may be somewhat uncertain.
Merits of Mode:-
Ø  Mode is the most representative value of distribution, it is useful to calculate model wage.
Ø  It is not affected by the extreme items in the series.
Ø  It can be determined graphically.
Demerits of Mode:-

Ø  It is not based on all observations.
Ø  Mode cannot be calculated when frequency distribution is ill-defined
Ø  It is not capable of further algebraic treatment. Like mean, combined mode cannot be calculated.
Q.27. What is the relationship between mean, median and mode? Give the formula.
Ans: - In a normal distribution Mean = Median = Mode.  In an asymmetrical distribution median is always in the middle but mean and mode will interchange their positions or values. Mode = 3 Median - 2 Mean.
Q.28. What is Dispersion? What are its various types? Distinguish between absolute and relative measures of dispersion.
Ans: - Dispersion: Dispersion is the measure of variation of items. It measures the extent to which the items vary from central value. It is also known as average of the second order. It includes range, mean deviation, quartile deviation, and standard deviation.
Measure of dispersion may be broadly classified into two types:-
A) Absolute measures of dispersion: It is classified into
a) Range b) Mean Deviation c) Standard Deviation d) Quartile Deviation
B) Relative measures of dispersion: It is classified into
a) Coefficient of Range b) Coefficient of Mean Deviation  c) Coefficient of Variation d) Coefficient of Quartile Deviation.
Q.29.Define Standard Deviation (S.D).Mention its merits and demerits.
Ans: - S.D: - The standard deviation, commonly denoted by ‘σ’ (Sigma) is the most widely used measure of dispersion. It is the square root of the second moment of dispersion and is calculated from the arithmetic mean. In short, it may be defined as the root-mean-square deviation from the mean.
Merits of SD:-
Ø  It is based on each and every item of the data and it is rigidly defined.
Ø  It is capable of further algebraic treatment. Combined SD of two or more groups can be calculated.
Ø  It is less affected by fluctuations of sampling than most other measures of dispersion.
Ø  SD is most prominently used in further statistical work.
Demerits of SD:-
Ø  It is not easy to calculate and to understand.
Ø  It gives more weight to extreme items and less to those which are nearer to mean.
Q.30. Difference between Schedule and Questionnaire.
Data collection is cheap and economical.
Data collection is more expensive.
It is not clear that who replies.
Identity of respondent is not known.
No personal contact is possible in case of questionnaire.
Direct personal contact is established
Wider and more representative distribution of sample is possible.
There remains the difficulty in sending enumerators over a relatively wider area.
This is not possible when collecting data through questionnaire.
Along with schedule observation method can also be used.

Q.31. What are various parts of the table?
Ans: In general, a statistical table consists of the following eight parts. They are as follows:
(i) Table Number: Each table must be given a number.
(ii) Title of the Table: Every table should have a suitable title.
(iii) Caption: Caption refers to the headings of the columns.
(iv) Stub: Stub refers to the headings of rows.
(v) Body: It contains a number of cells. Cells are formed due to the intersection of rows and column.
(vi) Head Note: The head-note contains the unit of measurement of data.
(vii) Foot Note: A foot note is given at the bottom of a table.
(viii)Source Note: The source note shows the source of the data presented in the table.
Q.32.What do you mean by Sampling? What are its various types? Mention its features, advantages and disadvantages.
Ans: Meaning of Sampling and Its Types
Sampling refers to the statistical process of selecting and studying the characteristics of a relatively small number of items from a relatively large population of such items, to draw statistically valid inferences about the characteristics about the entire population.
Some of the most common types of random sampling methods are
(1) simple random sampling,
(2) systematic sampling,
(3) stratified sampling, and
(4) cluster sampling.
Simple random sampling ensures that each possible sample has an equal probability of being selected, and each item in the entire population has an equal chance of being included in the sample.
In systematic sampling the items are selected from the population at a uniform interval defined in terms of time, order or space.
In stratified sample the entire population is divided in relatively homogeneous group.
In cluster sampling the population is divided into groups or clusters, a sample of these clusters may be drawn.
Characteristics of the sampling technique (Essentials of a Good sampling)
1. Representative: The sample should truly represent the characteristics of the verse.
2. Adequacy: The size of the sample should be adequate.
 3. Homogeneity: There should be homogeneity in the nature of all the units selected.
4. Independent ability.
Advantages of sampling 
1. Very accurate.
2. Economical in nature.
3. Very reliable.
Disadvantages of sampling
1. Inadequacy of the samples.
2. Chances for bias.                                                                                                         
3. Problems of accuracy.
Q.33. What are various types of Statistical errors?
Ans: Types of Statistical errors: 1] Sampling errors 2] Non-sampling errors
Sampling Error: It is the difference between sample value and actual value of a characteristic of a population.
Non-sampling errors: Errors that accurate the stage of collecting data.

Practical Problems: Consult your teacher
1. One Question from mean, median or mode
2. One Question from md, sd or variance (Objective)
3. Index number
4. Correlation
5. Preparation of Frequency Distribution table
6. Diagram – Bar diagram
7. Graph – Ogive, histogram and frequency polygon
Q. Calculate Mean, Median, Mode, Q1, Q3, QD, D9 and P60 from the below mentioned data:
a) 4, 4, 3, 3, 4, 5, 7, 8, 7, 8, 15, 20, 10, 3.
b) 1, 2, 3, 4, 5, 6
Q. Find the weighted AM of 1, 2, 3, 4 with corresponding weights 4, 3, 2,and 1 respectively.
Q. Calculate Mean, Median, Mode, Q1, Q3, QD, D9 and P60 from the following data:
Q. Find Mean, Median, Mode, D5, Q1, Q3, QD and P40
Class :
15 – 25
25 – 35
35 – 45
45 – 55
55 – 65
65 – 75
Frequency :
Q. Find Mean, Median, Mode, D5, Q1 and P40
Below 10
10 – 20
20 – 30
30 – 40
40 – 50
50 – 60
60 - 70
Above 70
No. of Students :
Q. Find Range, SD, mean deviation about median, Q1 and Q3 of the following data : Wt (kg) : 3, 4, 8, 10, 12
Q. From the following data, find Range, QD, MD about Mean and Median, standard deviation and CV.
Q. Find the mean, QD, S.D., coefficient of sd and coefficient of variation:
20 – 25
25 – 30
30 – 35
35 – 40
40 – 45
45 – 50
50 – 55
55 – 60
No. of Persons
Q. Calculate Rank correlation from the data given below:

Q. Calculate Rank correlation:
Rank 1
Rank 2
Q. Calculate the correlation coefficient by Pearson’s formula of the following data:
Q. Find the simple aggregative index number and simple average of price relatives (AM) for the data given below:
Base Price
Current Price
Q. Find the index number by using (i) Unweighted (ii) Weighted aggregative method (AM Method) from the following data:
Base Price (2005)
Current Price (2010)
Q. From the given data calculate the following:
1. Laspeyre’s Price Index and Laspeyre’s Quantity Index
2. Paasche’s Price index and Paasche’s Quantity index
3. Fisher’s price index and Fisher’s Quantity index
Q. Calculate CLI (Weighted) and unweighted index number:
% of Exp.
Prices in 1975
Prices in 1976
Q. Construct the general index number from the following data:
Group Index

Q.1. What was the condition of agriculture sector at the time of Independence?
Ans: 1) Low level of agricultural productivity, 2. High dependence on Monsoon, 3. Lack of Proper Input, 4. Lack of storage facility, 5. Lack of Agricultural marketing.
Q.2 What was the condition of Industrial sector at the time of Independence?
Ans: (i) Discriminatory Tariff Policy, (ii) Competition from machine by the handicraft man, (iii) New Patterns of Demand, (iv) More market for British Good, (v) Lack of public and private finance for industrial sector.
Q.3. What was the condition of foreign trade under the British rule?
Ans: (i) Due to discriminative tariff policy adopted by the British Government, India became net exporter of raw materials and primary products.
(ii) Composition of exports and imports showed the backwardness of Indian economy.
(iii) Surplus profit made and account of foreign trade during the British rule was distributed on administrative and as well as on war expenses.
Q. 4. Mention the demographic profile during the British rule.
Ans: 1) High birth and High death rate implied low survival rate. 2) Life expectancy was as low as 32 years which shows the lack of health care facilities, lack of awareness as well as lack of means for health care. 3) Literacy rate was as low as 16 percent, which reflects the social and economic backwardness of the country.

Q.5. What was the condition of Infrastructure at the time of Independence?
Ans: (1) There was some infrastructural development during the British in the area of transport and communication.
2) Introduction of railways was a major breakthrough followed by the development of some ports and the construction of some roads.
3) But the main motive of the British government was to foster the interest of the British Government rather than to accelerate the growth of Indian economy.
4) There was transition from barter system of exchange to monetary system of exchange, which facilitated division of labour& large scale production.

1. What is Economic Planning?
Ans: It means utilization of country’s resources into different development activities in accordance with the national priorities.
2. When was planning commission set up?
Ans: It was set up in 1950.
3. When was National development council set up?
Ans: It was set up in 1952
4. Mention the objectives or goals of planning in India. Briefly explain it.
Ans: The goals or objectives of planning in India are as follows:
(i) Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a large stock of productive capital or an increase in the efficiency of productive capital.
(ii) Modernization: It is necessary to adopt new technology in order to increase production of goods & services. Adoption of new technology is called modernization.
(iii) Self-reliance: It refers to utilization of country’s resources in order to promote economic growth and modernization without using the resources imported from other countries. It means avoiding imports of those goods which could be produced in India itself.
(iv) Equity: It means equal distribution of income and wealth among the societies. It is important to ensure that the benefits of economic development should reach the poor sections of the society as well.
5. Mention the development of Agriculture sector between 1950-1990.
Ans: (i) Land reforms: Land reforms were initiated in order to bring equity in ownership of landholdings. It was decided to establish intermediaries and to make the tillers of the owners of land. It gives the tillers the incentives to invest in making improvements in land provided sufficient capital was made available to them.
(ii) Land Ceiling: If refers to fixing the maximum size of land which could be owned by an individual. The purpose of land ceiling was to reduce the concentration of land ownership in a few hands and to promote equality in the agricultural sector.
(iii) Green Revolution: It refers to large increase in reduction of food grains resulting from the use of High yielding variety (HYV) seeds. The use of fertilizers, pesticides, irrigation facilities is important along with HYV seeds in order to increase agricultural productivity & production. The farmers should be provided adequate financial resources in order to purchase agricultural inputs.
6. Mention various characteristics of Indian Agriculture.
Ans: Indian is an agricultural country. Indian agriculture has its own characteristics which are as follows:
a)      Subsistence farming,
b)      Monsoon based agriculture,
c)       Small size of land holding,
d)      Low productivity,
e)      Dual ownership of land.
7. Mention some importance of Agriculture.

Ans: Importance of agriculture is as follows:
a)      Source of livelihood
b)      Source of food grains
c)       Source of industrial raw materials
d)      Source of national income.
8. Mention various problems of Indian agriculture.
Ans: Problems of Indian Agriculture:
a)      High pressure of population on land,
b)      Use of traditional technology,
c)       Lack of irrigation facilities,
d)      Lack of agricultural credit facility,
e)      Lack of marketing facilities,
f)       Lack of storage facility,
g)      Lack of agricultural research,
h)      Lack of physical infrastructures.
Q.9. what is marketed Surplus?
Ans: The excess portion of agriculture produce which is sold into the market by the farmers is called marketed surplus.
Q.10. What are the objectives of industrial licensing?
Ans: The Prime objectives of industrial licensing are given below:
a)      To utilize the scarce resources to the maximum.
b)      To realize the objective of economic growth on the basis of priorities.
c)       To generate more employment opportunities.
d)      To achieve the objective of regional balanced growth.
e)      To secure industrial efficiency.
f)       To develop strong infrastructural base.

Economic Reforms since 1991
Q.1.What is economic reforms?
Ans: The new economic policy started by the government since 1991 in order solve the Economic crisis and to accelerate the rate of economic growth is called Economic Reforms. It is also known as new economic policy which consists of Liberalization, Privatization and Globalization (LPG).
Q.2.Why there was need for economic reforms?
Ans: 1. Increase in fiscal deficit, 2. Adverse balance of payment, 3. Poor performances of PSU’s, 4 .Rise in price, 5.Fall in foreign exchange reserves
Q.3. what is New Economic Policy’ 1991? Briefly explain it.
Ans: New Economic Policy refers to adoption of Liberalisation, Privatisation and Globalization (LPG) which aims at the rendering the economy more efficient, competitive and developed.
Q.4. Mention the positive impact of LPG polices.
Ans: 1. a vibrant Economy, 2. Increase in Industrial production, 3. Check on fiscal deficit, 4. Check on inflation, 5. Flow of private foreign investment.
Q.5. Mention the negative impact of LPG polices.
Ans: 1. Neglect of agriculture, 2. Urban concentration of growth process, 3. Economic colonialism, 3. Cultural erosion
Q.6. What is liberalization? Mention its merits and demerits.
Ans: Liberalization: It means to free the economy from the direct and physical control imposed by the government.
Measures adopted for Liberalization:
a)      Abolition of industrial licensing.
b)      De-reservation of production areas
c)       Expansion of production capacity
d)      Freedom to import capital goods
Advantages of Liberalization
a)      Industrial licensing
b)      Increase in the foreign investment
c)       Increase in the foreign exchange reserve
d)      Increase in the consumption and control over price
e)      Check on corruption
Disadvantages of liberalization
a)      Increase in unemployment
b)      Loss of domestic units
c)       Increase dependence on foreign nations
d)      Unbalanced development
Q.7. What is Privatization? Mention its merits and demerits.
Ans: Privation: It refers to general process of involving the private sector in the ownership or management of state owned enterprises. It implies partial or full ownership and management of public sector enterprises by the private sector.
Measures adopted for Privatization:
a)      Contraction of public sector
b)      Disinvestment of public sector undertaking
c)       Selling of shares of public enterprises
Merits of Privatization:
a)      Improved Efficiency and minimised cost
b)      Lack of Political Interference
c)       Increased Competition
d)      Government will raise revenue from the sale.
Disadvantages of Privatization
a)      Privatization would create a private monopoly.
b)      Government loses out on potential dividend
c)       Problem of regulating private monopolies
d)      Short-Term view of Firms
Q.8. What is Globalisation? Mention its merits and demerits.
Ans:  Globalisation means ‘integrating’ the economy of a country with the world economy. This implies free flow of goods and services, capital, technology and labour across national boundaries.
Measures adopted by the government for globalization:
a)      reduction in custom duties.
b)      removal of quantitative restrictions on exports and imports.
c)       facilitating foreign investment and
d)      encouragement of foreign technology.
The Merits of Globalization are as follows:
a)      There is an International market for companies.
b)      For consumers, there is a wider range of products to choose from.
c)       Increase in flow of investments from developed countries to developing countries.
d)      Greater and faster flow of information between countries.
e)      Technological development has resulted in reverse brain drain in developing countries.
The Demerits of Globalization are as follows:
a)      The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.
b)      There is a greater threat of spread of communicable diseases.
c)       There is a threat of monopoly from multinational corporations.

Current challenges in Indian Economy - Poverty
1. Define poverty?
Ans: Poverty refers to a state in which an individual is unable to fulfill even the basic necessities of life.
2. Name two measures to determine the extent of poverty. Or Mention two types of poverty.
Ans: The two measures to determine the extent of poverty are: I. Relative poverty II. Absolute poverty
3. What is meant by absolute and relative poverty?
Ans. Absolute poverty refers to the total number of people living below poverty line.
Relative poverty refers to poverty of people in comparison to other people, regions or nations.
4. What is Poverty line?
Ans: Poverty line is a cutoff point on the line of distribution, which usually divides the population of the country as poor & non poor.
5. What are Minimum Needs programmes?
Ans: The third approach is to provide minimum basic amenities to the people. Food grains at subsidized rates, education, health, water supply & sanitation, mid day meal are some examples of minimum needs programme.
6. Explain various cause of poverty in India.
Ans: Causes of poverty
a)      Underdevelopment of the Indian economy: The root cause of poverty is the under development of the Indian economy. The underdevelopment is caused by the relative backwardness of agriculture & industrial sector.
b)      Population explosion: Rapid growth of population, particularly among the poor, is responsible for the problem of poverty in the country.
c)       High level of un-employment: Poverty is caused by unemployment or low rates of wages.
d)      Inequalities of income: An important cause of poverty in India is the existence of large inequalities in distribution of national income & concentration of economic power.
e)      Social factors:  Joint family system, laws of inheritance, strong belief in destiny & fate are some social factors that have presented individuals from taking initiative & risk.
f)       Inflation:  The steep & continuous rise in price, particularly of essential commodities has added to the miseries of the poor.
g)      High illiteracy rate: Lower education result in lower income as there is a positive correlation between the two.
7. What are various measures to remove poverty?
Ans: Measure to remove poverty:
a)      Acceleration of economic growth: The first & foremost measure needed to remove poverty is accelerating the rate of economic growth.
b)      Reducing inequalities of income: High growth rate with reduced inequalities of income helps in removing poverty.
c)       Population control: High growth rate of population is the prime cause of poverty. So, in order to remove poverty, it is very essential that population growth rate be checked.
d)      Agricultural development: Removal of mass poverty in rural areas is possible only when due emphasis is given for agricultural development.
e)      More employment opportunities: Poverty can be eliminated by providing more employment opportunities. So that people are able to meet their basic needs.
8. Mention various poverty alleviation programmes in India.
Ans: Poverty alleviation programmers (PAP) in India:
a)      Prime minister’s Rozgar Yojana (PMRY)
b)      Swarna Jayanthi Shahri Rozgar Yojana (SJSRY)
c)       Swarna Jayanthi Gram Swarozgar Yojana (SGSY)
d)      Sampoorna Grameen Rozgar Yojana (SGRY)
e)      National Rural Employment Guarantee Act 2005
f)       Pradhan Mantri Gramodaya Yojana (PMGY)

Current challenges in Indian Economy - Infrastructure
Q.1. What is infrastructure? What are its various types?
Ans: It refers to such core elements of economic & social change which serve as a support system to production activity in the economy. It is mainly divided into two parts: Economic and Social infrastructure.
Q.2. What is economic infrastructure?
Ans: It refers to all such elements of economic change like- power, transport, communication etc. which serve as a support system to the process of economic growth.
Q.3. What is social infrastructure?
Ans: It refers to core elements of social change like- schools, colleges, hospitals, banking etc. which serve as a support system to the process of social development of a country.
Q.4. Mention the importance of infrastructure in economic development.
Ans: i. Infrastructure enhances productivity, ii. Infrastructure induces investment. iii. Infrastructure enhances size of the market. iv. Infrastructure enhances ability to work. v. Infrastructure facilitates out sourcing. vi. Infrastructure induces FDI.
Q.5. What is energy? Mention the sources of energy.
Ans. Energy is the life line of entire production activity. In fact any type of production activity cannot take place without energy.
There are mainly two sources of energy:
i. Conventional sources of energy: These are that energy which is known to us & which is popularly in use since a very long time. For e.g. Coal, petroleum, natural gas & electricity.
ii. Non-conventional sources of energy: These are that energy which have been discovered in the recent past & which are yet to gain popularity for their use. For e.g. Solar energy, wind energy, bio-mass etc.
Q.6. Mention the emerging challenges of power generation in India.
Ans. a) inadequate generation of electricity, b) Less capacity utilization, c) Losses of electricity boards.
Q.7. Mention the measures undertaken to meet the challenges of power Generation in India.
Ans: Measures to improve power generation in India:
i. Increase in production capacity,
ii. Improvement in plant load factor,
iii. Minimization of transmission & distribution losses,
iv. Improve the supply of inputs to power plants,
v. Participation of private sector & encouragement to FDI in power generation.
Q.8. What is health? Mention the emerging challenges of health services in India.
Ans: It is a state of complete physical, mental & social well-being. A person’s ability to work depends largely on his good health. It enhances the quality of life.
Problems of health services in India:
a)      Unequal distribution of health services.
b)      Control of communicable diseases.
c)       Poor management of health care.

d)      Privatization of health care services.
e)      Poor upkeep & maintenance.
f)       Poor sanitation level.

Current challenges in Indian Economy – Human Capital Formation
1. Give the meaning of human capital.
Ans: Human capital refers to the stock of skill, ability, expertise, education and knowledge involved in the people.
2. What do you mean by human capital formation? What are its various sources? What are their importances?
Ans: Human capital formation means the development of abilities and skills among the population of the country.
Sources of Human Capital Formation:
1) Expenditure on education: Proper utility of man power depends on the system of education. Spending on education by individuals is similar to spending on capital goods.
2) Expenditure on Health: Health is an important input for a development of a nation.
3) On the job training: productivity of physical capital is substantially increased with the improvement in human capital. Due to this reason many firms provide on the job training to their workers.
4) Expenditure on Information: Expenditure is incurred to acquire information relating to labour market and other market. This information is necessary to make decisions regarding investment in human capital.
Importance of Human capital formation:
1. Human Capital formation is very important for the growth of an economy.
(i) Effective use of physical capital: Its growth and productivity depends on human capital formation.
(ii) Human capital formation raises the productivity and production.
 2. Inventions, innovations and technological improvement are all due to the extra knowledge acquired during education which provides lot of innovations and inventions.
3. The knowledgeable, skilled and physically fit people help in the human capital formation.
4. Increases life expectancy: Formation of human capital raises life expectancy of the people. This in turn, adds to the quality of life.
5. Improves Quality of life: The quality of population depends upon the level of education health of a person and skill formation acquired by the people.
6. Control of population growth: It has been observed that educated persons have smaller families as compared to illiterate families, So, spread of education is necessary to control the population growth rate.
3. What are various causes for poor human capital formations in India?
Ans: Reasons for poor Human Capital formations are:
1) Insufficient Resources: The resources allocated to the formation of human capital have been much less than the resources required for meeting the educational & health needs of the country.
2) Serious Inefficiencies: There are a lot of wastages of society’s resources as capabilities of educated people are either not made use of.
3) High Growth of population: The continuous rise in population has adversely affected the quality of human capital.
4) Lack of proper manpower planning: There is an imbalance between the demands for the supply of human resources of various categories, especially in case of highly skilled personnel. The absence of such balancing has resulted in the wastage of resources.
4. Write a brief note on Growth of Education Sector in India.
Ans: There has been considered growth in the field of Education. The number of schools increased from 230.7 thousands (1950-51) to 1,415.8 thousands (2013-14). The no. of teachers in the same period increased from 751 thousand to 6010 thousands & no of students from 23,800 thousands to 2, 22,700 thousands.
Current challenges in Indian Economy – Rural Development
 1. What do you mean by Rural Development?
Ans: Rural Development is a continuous comprehensive socio-economic process, attempting to improve all aspects of rural life.
2. What is agricultural diversification essential for sustainable livelihood?
Ans: Agricultural diversification is essential for rural people to generate supplementary gainful employment and realizing higher level of income.
3. What is cooperative marketing?
Ans: Cooperative marketing refers to a system in which marketing societies are formed by farmers to sell the output collectively and to take advantage of collective bargaining.
4. What do you mean by agricultural marketing?
Ans: Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
5. What are the 2 aspects of diversification of activities?
Ans: Diversification includes 2 aspects
i. Diversification of crop production
ii. Diversification of productive activities.
6. Classify rural credit on base of time.
Ans: On the basis time, rural credit can be classified as: short-term credit, medium-term credit and long-term credit
7. Which is the apex institution in rural financing?
Ans: National Bank for Agricultural and Rural Development (NABARD), established in 1982.
8. Name three institutional sources of agricultural credit
Ans: 3 institutional sources of agricultural credit are: i. Cooperative Credit Societies ii. Commercial Banks iii. Regional Rural Banks
9. What is Micro-finance?
Ans: Micro finance is a credit scheme extended to the poor through Self Help Groups (SGHs)
10. Why have Self Help Groups (SGHs) been set up?
Ans: The Self-Help Groups (SGHs) have been set up to give credit to the needy numbers to be repayable in small installments at reasonable interest rates.
11. Why is minimum support price (MSP) fixed by the government?
Ans: Minimum support price is fixed by the govt. to safe guard the interest of farmers.
12. What is rural credit? Mention its various sources.
Ans: Rural Credit: Rural Credit means provision of loans especially in production for agriculture and non-agricultural sectors. The loans have provided in rural areas to the farmers in order to purchase machineries, agricultural implements etc.
Sources of Rural Credit: Rural Credit availability can be broadly classified into 2 categories:
1. Non-institution Sources: These are the traditional sources of agricultural credit in India. They include money lenders, relatives, traders, commission agents and land lords.
2. Institutional Sources: They are cooperative credit, land development banks, commercial banks, regional rural banks, govt., national bank for agricultural and rural development (NBNR) and also self-help groups.
13. What is Agricultural Marketing System? Mention various measures to improve agricultural marketing system.
Ans: Agricultural marketing is a process which involves assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Measures to Improve Agricultural Marketing: Following are some of the measures to improve the system agricultural marketing in the country:
1. Extension of storage facilities at the farm level and storage and warehousing facilities in the markets and consumption centers.
2. Establishments of regulated markets.
3. Improvement of transport facilities between the village and the mandi’s.
4. Establishment of cooperation marketing societies.
5. Provision of cheap credit, especially from institutional sources.
6. Prompt supply of marketing information.
14. Mention various defects of Agricultural Market in India.
Ans: The existing system of Agricultural marketing has number of defects the following are some of the defects due to which the marketing system is not properly organized:
a)      Lack of storage facility for food grain and crops has damaged the products either by rats or insects or due to rain.
b)      Distress Sale: Most Indian farmers are poor and they have no capacity to wait for better price. They sell the commodities at whatever the price available immediately.
c)       Lack of transportation as a result farmer cannot reach nearly mandi’s to sell their produce at a fair price.
d)      Long chain of middleman or intermediaries between the cultivator and the consumer will also reduce the profit of the producer.
e)      There are also other defects like lack of institutional finance, lack of guiding etc.
15. What do you mean by the diversification of Agricultural Activity? Explain briefly.
Ans: This means the excess of people in agriculture can be given gainful employment in some other allied activities in agriculture and non-farm activities. This is done in order to overcome poverty, improve employment and make rural agricultural people fully employed.
Diversification includes two aspects.
a. Diversification of crop production: This involves shift from single cropping system to multiple cropping system. The main aim is to promote shift from subsistence farming to commercial farming.
b. Diversification of Productive Activities: As agricultural is already overcrowded, the major portion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors.
16. Explain the increasing role of IT Industries in the development of agriculture?
Ans: Information Technology has revolutionized many sectors in Indian economy including agricultural sector. It has a significant impact on the agricultural sector as it circulates information regarding weather and soil condition for growing different crops. This has increased the productivity of agriculture. The aim for increasing the role of information technology is to make ever village a knowledge Centre, where IT provides a sustainable option of employment and livelihood.
17. What is organic farming? Mention its merits and problems.
Ans: Meaning of Organic Farming: Organic farming is the process of producing food naturally. This method avoids the use of synthetic chemical fertilizers. It is very eco-friendly and very essential for sustainable development. It has a zero impact on environment.
Advantages of Organic Farming
1. It substitutes costlier Chemical fertilizers with cheaper organic inputs.
2. It generates income through export as the demand, for organically grown crops are on the raise.
3. It provides healthy food as organically grown food has more nutritional value.
4. It can provide more employment opportunities in India.
5. Organic food is a pesticide free and is produced in an environmentally sustainable way.
Problems of Organic Farming
1. Organic farming needs to be popularized by creating awareness and willingness on the part of the farmers for adoption of new methods.
2. There is no proper infrastructure and marketing facilities for these products alone.
3. An appropriate agricultural policy should be brought in for organic farming.
4. The fields from organic farming are less than modern agricultural farming in the initial years.

Current challenges in Indian Economy – Unemployment
Q.1. Mention the need for creating employment.
Ans: Necessity to create employment in formal sector because
1. It provides various security benefits.
2. It provides regular income.
3. Job Security
Q.2. What is Unemployment? Mention its reasons. What are its various types?
Ans: Unemployment: It means when a person is ready and willing to work at the prevailing rate of wage but does not get work.
Reasons for unemployment:
1. Increase in population.
2. Poverty.
3. Lack of infrastructure.
4. Slow growth of industrialization.
5. Lack of demand.
Types of unemployment:
1. Disguised unemployment is a situation when the no. of workers engaged in a job is much more than actually required. If some of them are withdrawn from job, total production will not get affected.
2. Seasonal Unemployment-work in agriculture is seasonal, no employment opportunity for remaining months.
3. Frictional Unemployment - when a person move from one job to other, but in the process of change may remains unemployed for sometimes.
4. Structural unemployment- it occurs due to structural changes in the economy structural changes is of two types - Changes in technology and Change in demand.
5. Cyclic Unemployment- Due to Business cycles.
Q.3. What do you mean by employment?
Ans: Employment is an activity which enables a person to earn his means of living.
Q.4. What do you mean by full employment?
Ans: Full employment is a situation in which all the workers who are capable of working and willing to work get an employment at a prevailing wage rate.
Q.5. What do you mean by self employment?
Ans: When the worker uses his own resources to work and make a living then we call it as Self Employment.
Q.6. Name the two kinds of urban unemployment.
Ans:  1. Industrial unemployment, 2. Educated unemployment.
Q.7. What do you mean by industrial unemployment?
Ans: It refers to the unemployment among the illiterates who wish to work in industrial establishment
Q.8. Give the meaning of educated unemployment.
Ans: Educated unemployment refers to the unemployment among the Educated people.
Q.9. What is meant by wage employment?
Ans: An arrangement in which a worker sells his labour and earns wages in return.
Q.10. Give the meaning of work force.
Ans: The number of persons, who are actually employed at a particular time, are known as work force.
Q.11. What is meant by Casualisation of work force?
Ans: The process of moving from Self- Employment and regular salaried employment to casual wage work is known as Casualisation of Workforce.
Q.12. What is information of workforce?
Ans: Informalisation of workforce refers to a situation whereby the proportion of workforce in the informal sector to total workforce increases.
Q.13. What do you mean by formal sector establishment?
Ans: All the public enterprises and private establishments, which Employ 10 or more hired workers are called formal sector establishments.
Q.14. What do you mean by Informal sector Establishment?
Ans: All those private enterprises which hire less than 10 workers are called Informal sectors. E.g.: Workers who work in farms, owners of Small Enterprises, Agriculture labourers. Here they do not get regular income. No protection or regulation by government can be dismissed at any time. Live in slums, use outdated technology, and do not maintain accounts.
Current challenges in Indian Economy – Environment
Q.1. What is meant by Environment?
Ans: Environment is defined as the total planetary inheritance and the totality of all resources.
Q.2. What does Environment Includes?
Ans: Environment includes all the biotic and abiotic factors that influence each other.
Q.3. What do you mean by biotic elements?
Ans: All living elements like birds, animals and plants, forests, fisheries etc. are biotic elements.
Q.4. Give the meaning of Renewable Resources?
Ans: These are those resources which can be used without the possibility of being exhausted, such as trees, fishes etc.
Q.5. What do you mean by non-renewable resources?
Ans: These are those resources which get exhausted with extraction and use such as coal, gas etc.
Q.6. What is included under abiotic elements?
Ans: It includes non-living elements like air, water, land etc.
Q.7. What happens when the rate of resource extraction exceeds that of their re-generation?
Ans: When the rate of resources extraction exceeds that of their re-generation then environment fails to perform its vital function of life substance and it lead to the situation of Environmental Crisis.
Q.8. What do you mean by the Carrying capacity of environment?
Ans: Carrying capacity of the environment implies that the resources extraction is not above the rate of regeneration of the resources and the wastes generated are within the assimilating capacity of the environment.
Q.9. What do you mean by Pollution?
Ans: Pollution is the Introduction of contaminates into an environment that causes instability, disorder, harm or discomfort to the ecosystem.
Q.10. What is Global warming?
Ans: Global warming is the observed and projected increase in the average temperature of earth’s atmosphere and oceans.
Q.11. What has caused Global Warming?
Ans: The Global warming is due to increase in the Green-house gas concentrations, like water vapour, carbon-dioxide, methane and ozone in the atmosphere.
Q.12. Give the meaning of air pollution.
Ans: Air pollution is the presence of materials in air such concentration, which are harmful to man and his environment.
Q.13. Mention any 1 measure to control air pollution in vehicles.
Ans: Promotion of cleaner fuels, like use of CNG instead of petrol or diesel.
Q.14. What is Sustainable development?
Ans: It is the development, which will allow all future generations to have a potential average quality of life, which is at least as high, which is being enjoyed by the current generation.
Q.15. What is meant by Bio diversity?
Ans: Bio diversity is defined as the variability among living organisms from all sources, including terrestrial, marine and other aquatic ecosystem and the ecological complexes of which they are a part.
Q.16. What do you mean by ozone depletion?
Ans: It refers to destruction of ozone in the ozone layer, due to presence of chlorine from manmade chlorofluorocarbons and other forces.
Q.17. What has lead to depletion of ozone layer?
Ans: The problem of ozone depletion is cost by high levels of chlorine and bromine compounds in the stratosphere.
Q.18. Why have some resources become extinct?
Ans: Some resources have become extinct because their extinction has been above the rate of regeneration.
Q.19. How has the supply – demand relationship lead to degradation of environment?
Ans: The demand for resources has gone beyond the rate of regeneration (supply). It has increased the pressure on the absorption capacity of the environment and such several of the supply – demand relationship has lead to degradation of the environment.
Q.20. What has lead to the Air pollution in urban areas?
Ans: Increasing number of motor vehicles and concentration of industries in urban areas and has lead to air pollution in urban areas.
Q.21. State the 2 major environmental issues that the world is facing today?
Ans: (i) Depletion of natural resources (ii) Environmental degradation
Q.22. Mention various functions of environment.
Ans: Functions of Environment
1. It provides resources for production.
2. Environment assimilates wastes.
3. It sustains life by providing essential elements like sun, soil, air, water etc.
Q.23. What is carrying capacity?
Ans: Carrying capacity means 2 things.
1. Resources extraction should remain below the rate of resource generations.
2. Generation of wastes should remain within the absorption capacity of the environment. If these two conditions are not fulfilled, then it leads to the situations of environmental crises.
Q.24. What is absorbtive capacity?
Ans: It means the ability of the environment to absorb degradation.
Q.25. What are various reasons for environmental crisis?
Ans: Reason for Environmental Crisis
a)      Population explosion and Industrial revolution has increased the demand for environmental resources.
b)      The intensive and extensive extraction of both renewable and non-renewable resources has exhausted some of the vital resources.
c)       Due to affluent consumption and production standard of developed world, the waste generated is beyond the absorptive capacity of the environment.
d)      The development process has polluted environment, water and atmosphere and there is decline in air and water quality.
Q.26. Explain the strategies for sustainable development.
Ans: The following strategies should be adhered to, for sustainable development:
1. Use of Non-conventional source of Energy like wind and solar says are cleaner and greener technologies, which can be effectively used to replace thermal and hydropower.
2. Use of CNG as fuel in public transport system has lowered air pollution and the air has become cleaner. The use of LPG and Gobar Gas is being promoted which reduces air pollution.
3. Establishment of Mini-Hydel plants in mountain regions to generate electricity through mini Hydel plants.
Development experience of India: A comparison of India, Pakistan and China
Q.1. What similar developmental strategies have India and Pakistan followed for their respective developmental paths?
Ans: India and Pakistan followed many similar developmental strategies:
a)      India and Pakistan both have started their developmental programmes based on economic planning soon after their independence in 1947.
b)      Both the countries relied on the public sector for initiating the process of growth and development. 
c)       Both of them have followed the path of mixed economic structure involving the participation of both the state as well as the private sector. 
d)      Both of them introduced economic reforms at the same time to strengthen their economies. 

Q.2. Mention the various indicators of human development.
Ans: The indicators of human development are:
a)      Life Expectancy.
b)      Adult Literacy Rate.
c)       Infant Mortality Rate.
d)      Percentage of the population below poverty line.
e)      GDP per capita
f)       Percentage of the population having access to improved sanitation
g)      Percentage of the population having access to improved water sources.

Q.3. Group the following features pertaining to the economies of India, China and Pakistan under the following heads: • One-child norm, • Low fertility rate, • High degree of urbanisation, • Mixed economy, • Very high fertility rate, • Large population, • High density of population, • Growth due to manufacturing sector, • Growth due to service sector.
Ans: India: Mixed economy, very high fertility rate, large population, high density of population, growth due to service sector.
China: One-child norm, low fertility rate, high degree of urbanization, mixed economy, large population, growth due to manufacturing sector.
Pakistan: Mixed economy, very high fertility rate, growth due to service sector.
Q.4. Give reasons for the slow growth and re-emergence of poverty in Pakistan.
Ans: The reasons for the slow growth and re-emergence of poverty in Pakistan are:
a)      The Pakistan was mainly dependent on Public Sector Enterprises. The operational inefficiencies of the system along with the misallocation of scarce resources resulted in slow economic growth rate arid poverty.
b)      The agricultural practices in Pakistan were not modernised and there remained heavy dependence on rainfall and traditional methods of farming.
c)       There was an increasing dependence on foreign loans for meeting foreign exchange requirements.
d)      Pakistan failed to attract any substantial amount of foreign investment due to political instability, lack of international credibility and infrastructure bottlenecks.
Q.5. Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
Ans: China is way ahead of India and Pakistan at most of the human development indicators. China ranked 81, India 128th and Pakistan 136th. High ranking of China is due to the higher GDP per capita. Moreover, the one-child norm led to sustained rise in the GDP; consequently, China was ranked higher than India and Pakistan in HDI. Pakistan is ahead of India in terms of reducing the number of people below poverty line and in providing better sanitation and drinking water. But both the countries perform equally badly in terms of infant mortality and maternal mortality rates. All the three countries perform badly in sex ratio.
(a) First Five Year Plan of Pakistan commenced in the year 1956.
(b) Maternal mortality rate is high in Pakistan.
(c) Proportion of people below poverty line is more in India.
(d) Reforms in China were introduced in 1978.

Q.1. What is project? Mention various steps in developing a project.
Ans: Meaning of Project: A project can be defined as a well thought out plan of action made to achieve specific objective.
Steps for developing a project:
1. Objective: The required data has to be collected with a clear objective of the project.
2. Population: To develop a project, the target population should be determined.
3. Collection of data: Data regarding project report should be collected using primary or secondary data. Secondary data must be used with great care.
4. Organization and presentation of data: Report can be presented using statistical tables, graphs or diagrams.
5. Analysis of data: Statistical measures like measures of central tendency and dispersion can be used for analyzing the data.
6. Interpretation & Conclusion: Data collected and analyzed should be correctly interpreted.

7. Consumer Awareness: It means product awareness among the consumers.