| Latest Economics NCERT Notes, Solutions and Extra Q & A (Class 9th to 12th) | |||||||||||||||||||
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| 9th | 10th | 11th | 12th | ||||||||||||||||
| Class 10th Chapters | ||
|---|---|---|
| 1. Development | 2. Sectors Of The Indian Economy | 3. Money And Credit |
| 4. Globalisation And The Indian Economy | 5. Consumer Right | |
Chapter 1 Development
This chapter introduces the core idea that Development is a complex, multifaceted, and often contested concept. It establishes that the notion of progress or development is not uniform for everyone; what may be development for one may not be for another, and it can even be destructive for others. For example, a new dam may be development for an industrialist who gets electricity, but it is destructive for the tribal communities who are displaced. The chapter moves beyond the simplistic view of development as mere economic growth and emphasizes that people's goals are a mix of both material desires, like more income, and non-material desires, such as equal treatment, freedom, security, and respect.
Furthermore, it critically examines the most common metric used to compare countries: Per Capita Income. While this is a useful average, the chapter clearly illustrates its major limitation—it hides disparities in income distribution. A country with a high average income can still have vast numbers of poor people. Therefore, it argues that income by itself is not a completely adequate indicator of development. Other crucial factors like health (Infant Mortality Rate) and education (Literacy Rate), as used in the Human Development Report (HDR), provide a more holistic view of human well-being. Finally, the chapter concludes by introducing the vital concept of Sustainability of Development, questioning whether current levels of progress can be maintained for future generations without harming the environment.
What Development Promises — Different People, Different Goals
The idea of development or progress has always been a part of human aspirations. We all have desires about what we want to do and how we want to live. Similarly, for a nation, development involves thinking about essential requirements, improving life for all citizens, fostering social harmony, and promoting equality. It is a complex process that involves addressing these fundamental questions to achieve collective goals.
The notion of development is not uniform; it varies from person to person. What constitutes development depends on an individual's life situation, needs, and aspirations.
Developmental Goals of Different Categories of Persons
Different people seek different things that are most important to them. Their developmental goals are based on what can best fulfill their aspirations. Let's examine the likely developmental goals for various categories of people.
| Category of Person | Developmental Goals / Aspirations |
|---|---|
| Landless rural labourers | More days of work and better wages; local school is able to provide quality education for their children; there is no social discrimination and they too can become leaders in the village. |
| Prosperous farmers from Punjab | Assured a high family income through higher support prices for their crops and through hardworking and cheap labourers; they should be able to settle their children abroad. |
| Farmers who depend only on rain for growing crops | Timely and adequate rainfall; access to irrigation facilities like canals or tube wells; better prices for their crops and access to crop insurance. |
| A rural woman from a land-owning family | Ownership rights over the land; freedom to make her own decisions; a safe environment and better educational opportunities for her children. |
| Urban unemployed youth | A stable job with a good salary; opportunities for skill development; affordable housing and public transport. |
| A boy from a rich urban family | Freedom to pursue his own interests and studies, possibly abroad; access to the latest gadgets and a personal vehicle like a car. |
| A girl from a rich urban family | She gets as much freedom as her brother and is able to decide what she wants to do in life. She is able to pursue her studies abroad. |
| An adivasi from Narmada valley | Secure livelihood and no displacement from their land and forests; preservation of their culture and traditions; benefits from development projects like schools and healthcare. |
Different and Conflicting Goals
From the table above, two things are quite clear:
- Different persons can have different developmental goals. A landless labourer's goal of higher wages is different from an urban youth's goal of a stable job.
- What may be development for one may not be development for the other. It may even be destructive for the other. This leads to conflicting goals.
For example:
- To get more electricity, industrialists may want more dams. However, building large dams may submerge the land and disrupt the lives of tribal people who are displaced. For the tribals, this is not development; it is destruction. They might prefer small check dams or tanks to irrigate their land.
- A girl from a rich family expects as much freedom and opportunity as her brother and wants him to share household work. Her brother may not like this, viewing it as a restriction on his own freedom.
Income and Other Goals
If we examine the developmental goals of different people, a common aspiration emerges: the desire for more income. Whether it's through regular work, better wages, or decent prices for crops and products, people want to earn more.
Beyond Income: Non-Material Goals
While income is a crucial factor, it is not the only thing people seek. The quality of our life depends on many non-material things as well. These are often as important, and sometimes more important, than income. These include:
- Equal treatment
- Freedom
- Security
- Respect from others
- Friendship
People resent discrimination. All these are important goals. Material goods that money can buy are essential, but they are not all that we need to live a good life. These non-material factors are not easily measured, but they mean a lot to our lives.
A Mix of Goals for Development
In reality, for development, people look at a mix of goals. When considering a job offer, a person evaluates several factors apart from income:
- Facilities for the family: Are there good schools and hospitals nearby?
- Working atmosphere: Is the workplace supportive and respectful?
- Opportunity to learn: Does the job offer chances for growth?
A job with less pay but offering regular employment enhances a sense of security. In contrast, a high-paying job with no job security and no time for family might reduce one's sense of security and freedom.
Similarly, for women's development, while being engaged in paid work increases their dignity, it is also true that a society that respects women will have more sharing of housework and greater acceptance of women working outside. A safe and secure environment is essential to allow more women to take up a variety of jobs or run a business.
Therefore, developmental goals are not only about better income but also about other important things in life.
National Development
Just as individuals have different notions of development, their ideas of national development are also likely to be varied and even conflicting. For example, some might prioritize industrial growth, while others might focus on agricultural development or environmental protection.
National development means thinking about these critical questions:
- What would be a fair and just path for all?
- Is there a better way of doing things?
- Would a particular developmental path benefit a large number of people or only a small group?
Therefore, national development requires deciding on the relative importance of different goals and finding ways to resolve conflicts to achieve a path that benefits the maximum number of people.
Example 1. A vessel dumped 500 tonnes of liquid toxic wastes into open-air dumps in a city and in the surrounding sea. This happened in a city called Abidjan in Ivory Coast, a country in Africa. The fumes from the highly toxic waste caused nausea, skin rashes, fainting, diarrhoea etc. After a month seven persons were dead, twenty in hospital and twenty six thousand treated for symptoms of poisoning. A multinational company dealing in petroleum and metals had contracted a local company of the Ivory Coast to dispose the toxic waste from its ship.
Answer:
This situation highlights a conflict in developmental goals.
(i) Who are the people who benefited and who did not?
The multinational company and the local company that was paid to dispose of the waste benefited financially. The residents of the city of Abidjan, especially those living near the dump sites, did not benefit. In fact, they suffered immensely from health problems, and some even lost their lives. Their well-being was sacrificed for the profit of the companies.
(ii) What should be the developmental goal for this country?
The developmental goal for the country should be one that ensures the health and safety of its citizens. This includes establishing and enforcing strict environmental regulations to prevent such incidents. Development should not come at the cost of public health and environmental safety. A fair and just path would involve industrial growth that is sustainable and does not harm the population or the environment.
How to Compare Different Countries or States?
To understand development, we often need to compare different countries or states. The criterion for comparison depends on the purpose. For instance, to choose a sports team, we look at athletic ability, but for a debate team, we look at reasoning and speaking skills.
When it comes to the all-round development of a country, we need to choose important characteristics. For comparing countries, their income is considered one of the most important attributes.
Per Capita Income as a Criterion
The general belief is that higher income allows people to satisfy their needs and wants. So, greater income is considered an important developmental goal.
- Total Income: This is the income of all the residents of the country. However, it is not a useful measure for comparison because countries have different populations.
- Average Income (Per Capita Income): To account for population differences, we use average income. It is calculated by dividing the total income of the country by its total population.
$ \text{Per Capita Income} = \frac{\text{Total Income of the Country}}{\text{Total Population}} $
The World Bank uses per capita income in its World Development Reports to classify countries:
- High-income countries (Rich countries): Per capita income of US$ 49,300 per annum and above (in 2019).
- Low-income countries: Per capita income of US$ 2500 or less (in 2019).
- India fell into the category of low middle-income countries with a per capita income of US$ 6700 per annum in 2019.
Limitations of Average Income: Hiding Disparities
While averages are useful for comparison, they have a major limitation: they hide disparities. Average income does not tell us how this income is distributed among the people.
Consider two hypothetical countries with five citizens each:
| Country | Income of Citizen I (in ₹) | Income of Citizen II (in ₹) | Income of Citizen III (in ₹) | Income of Citizen IV (in ₹) | Income of Citizen V (in ₹) | Average Income (in ₹) |
|---|---|---|---|---|---|---|
| Country A | 9,500 | 10,500 | 9,800 | 10,000 | 10,200 | 10,000 |
| Country B | 500 | 500 | 500 | 500 | 48,000 | 10,000 |
Both countries have the same average income. However:
- Country A has a more equitable distribution of income. People are neither very rich nor extremely poor.
- Country B has a huge disparity. Most citizens are extremely poor, while one person is extremely rich.
Most people would prefer to live in Country A because of its equitable society. This shows that besides the size of per capita income, the distribution of income is also a very important factor for development.
Public Facilities, Human Development Report, and Sustainability
Income and Other Criteria
When we look at individual goals, we see that people desire a mix of material and non-material things. Similarly, for a nation, besides average income, other attributes are equally important. Let's compare three Indian states: Haryana, Kerala, and Bihar, using Per Capita Income and other indicators.
Per Capita Income of Select States
| State | Per Capita Income (in ₹) |
|---|---|
| Haryana | 2,36,147 |
| Kerala | 2,04,105 |
| Bihar | 40,982 |
Based on per capita income alone, Haryana would be considered the most developed and Bihar the least developed.
Comparative Data on Health and Education
| State | Infant Mortality Rate per 1,000 live births (2018) | Literacy Rate % (2017-18) | Net Attendance Ratio (age 14-15) % (2017–18) |
|---|---|---|---|
| Haryana | 30 | 82 | 61 |
| Kerala | 7 | 94 | 83 |
| Bihar | 32 | 62 | 43 |
This data reveals a different picture. Despite having a higher per capita income, Haryana lags behind Kerala in crucial areas like health (lower IMR in Kerala) and education (higher literacy and school attendance in Kerala).
Public Facilities
The reason for Kerala's better performance is the availability of adequate public facilities. Money in your pocket cannot buy all the goods and services you need to live well.
- Health and Environment: Income alone cannot guarantee a pollution-free environment, unadulterated medicines, or protection from infectious diseases. These require collective action and government provision.
- Education: You are able to study because many other children also want to study, and the government provides schools and other facilities. Without collective facilities, only the rich could afford private education.
Kerala has a low Infant Mortality Rate because it has adequate provision of basic health and educational facilities. Similarly, states where the Public Distribution System (PDS) functions well are likely to have a better health and nutritional status for their people. Providing goods and services collectively is often the best and cheapest way.
Human Development Report (HDR)
Realizing that income is an inadequate measure of development, other criteria like health and education have become widely used. The Human Development Report, published by the United Nations Development Programme (UNDP), compares countries based on three key dimensions:
- Health Status: Measured by life expectancy at birth.
- Educational Levels: Measured by mean years of schooling for adults and expected years of schooling for children.
- Standard of Living: Measured by Gross National Income (GNI) per capita (PPP $).
The ranks are based on the Human Development Index (HDI).
| Country | GNI per capita (2017 PPP $) | Life Expectancy at birth | Mean Years of Schooling (Age 25+) | HDI Rank in the world (2021-22) |
|---|---|---|---|---|
| Sri Lanka | 12,578 | 76.4 | 10.8 | 73 |
| India | 6,590 | 67.2 | 6.7 | 132 |
| Myanmar | 3,851 | 65.7 | 6.4 | 149 |
| Pakistan | 4,624 | 66.1 | 4.5 | 161 |
| Nepal | 3,877 | 68.4 | 5.1 | 143 |
| Bangladesh | 5,472 | 72.4 | 7.4 | 129 |
The table shows that a small country like Sri Lanka is much ahead of India in human development. Also, countries like Bangladesh and Nepal, with lower per capita income than India, have better life expectancy. This highlights that what is important in development is what is happening to citizens—their health and well-being.
Sustainability of Development
A crucial aspect of development is its sustainability. This means development should meet the needs of the present without compromising the ability of future generations to meet their own needs. We must not overuse our environmental resources.
"We have not inherited the world from our forefathers — we have borrowed it from our children."
Example 2. Groundwater in India
Recent evidence suggests that groundwater is under serious threat of overuse. About 300 districts have reported a water level decline of over 4 metres during the past 20 years. Nearly one-third of the country is overusing their groundwater reserves. This overuse is particularly found in agriculturally prosperous regions like Punjab and Western U.P.
Answer:
Groundwater is a renewable resource, replenished by nature through rain. However, if we use more than what is being replenished, we are overusing it. This is unsustainable because future generations may be left with a severe water crisis. Development, such as agricultural growth, that leads to such overuse is not sustainable.
Example 3. Exhaustion of Natural Resources
Consider the data for crude oil reserves.
| Region/Country | Reserves (2017) (Thousand Million Barrels) | Number of Years Reserves will last |
|---|---|---|
| Middle East | 808 | 70 |
| United States of America | 50 | 10.5 |
| World | 1697 | 50.2 |
Answer:
Crude oil is a non-renewable resource. It exists in a fixed stock that cannot be replenished. The current rates of extraction suggest that the world's reserves will last only about 50 more years. This raises serious questions about the sustainability of current development models that are heavily dependent on oil. Countries like India, which depend on importing oil, face a huge burden as prices rise and supplies dwindle.
The issue of sustainability is critical. Consequences of environmental degradation are not confined by national boundaries and our future is linked together. The debate on how to achieve sustainable development is one of the most important challenges facing the world today.
NCERT Questions Solution
Intext Questions (Pages No. 6)
Question 1. Why do different persons have different notions of development? Which of the following explanations is more important and why?
(a) Because people are different.
(b) Because life situations of persons are different.
Answer:
Question 2. Do the following two statements mean the same? Justify your answer.
(a) People have different developmental goals.
(b) People have conflicting developmental goals.
Answer:
Question 3. Give some examples where factors other than income are important aspects of our lives.
Answer:
Question 4. Explain some of the important ideas of the above section in your own words.
Answer:
Intext Questions (Pages No. 7)
Question 1. Look at the picture on the right. What should be the developmental goals for such an area?
Answer:
Question 2. Read this newspaper report and answer the questions that follow:
A vessel dumped 500 tonnes of liquid toxic wastes into open-air dumps in a city and in the surrounding sea. This happened in a city called Abidjan in Ivory Coast, a country in Africa. The fumes from the highly toxic waste caused nausea, skin rashes, fainting, diarrhoea etc. After a month seven persons were dead, twenty in hospital and twenty six thousand treated for symptoms of poisoning. A multinational company dealing in petroleum and metals had contracted a local company of the Ivory Coast to dispose the toxic waste from its ship.
(i) Who are the people who benefited and who did not?
(ii) What should be the developmental goal for this country?
Answer:
Question 3. What can be some of the developmental goals for your village, town or locality?
Answer:
Intext Questions (Pages No. 9)
Question 1. Give three examples where an average is used for comparing situations.
Answer:
Question 2. Why do you think average income is an important criterion for development? Explain.
Answer:
Question 3. Besides size of per capita income, what other property of income is important in comparing two or more societies?
Answer:
Question 4. Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example.
Answer:
Question 5. From the text, find out the per capita income level of about 10-15 low-income countries as per World Development Reports.
Answer:
Question 6. Write a paragraph on your notion of what should India do, or achieve, to become a developed country.
Answer:
Intext Questions (Pages No. 12)
Question 1. Look at data in Tables 1.3 and 1.4. Is Haryana ahead of Kerala in literacy rate etc., as it is in terms of per capita income?
Answer:
Question 2. Think of other examples where collective provision of goods and services is cheaper than individual provision.
Answer:
Question 3. Does availability of good health and educational facilities depend only on amount of money spent by the government on these facilities? What other factors could be relevant?
Answer:
Question 4. In a study, it was found that in Tamil Nadu, 90 per cent of the people living in rural areas used a ration shop, whereas in West Bengal only 35 per cent of rural people did so. Where would people did better off and why?
Answer:
Exercises
Question 1. Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above
Answer:
Question 2. Which of the following neighbouring countries has better performance in terms of human development than India?
(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan
Answer:
Question 3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family?
(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000
Answer:
Question 4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?
Answer:
Question 5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?
Answer:
Question 6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.
Answer:
Question 7. Kerala, with lower per capita income has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.
Answer:
Question 8. Find out the present sources of energy that are used by the people in India. What could be the other possibilities fifty years from now?
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Question 9. Why is the issue of sustainability important for development?
Answer:
Question 10. “The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. How is this statement relevant to the discussion of development? Discuss.
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Question 11. List a few examples of environmental degradation that you may have observed around you.
Answer:
Question 12. For each of the items given in Table 1.6, find out which country is at the top and which is at the bottom.
Answer:
Question 13. The following table shows the proportion of adults (aged 15-49 years) whose BMI is below normal ($BMI < 18.5 kg/m^2$) in India. It is based on a survey of various states for the year 2019-21. Look at the table and answer the following questions.
| State | Male (%) | Female (%) |
|---|---|---|
| Kerala | 8.5 | 10 |
| Karnataka | 17 | 21 |
| Madhya Pradesh | 28 | 28 |
| All States | 20 | 23 |
(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words.
Answer: