Bhagya

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 9 Economic Policy of India Since 1991 Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 9 Economic Policy of India Since 1991

1A. Complete the following statements by choosing the correct alternative:

Question 1.
The investment limit of small scale industries has been increasing up to __________ crores.
(a) 10
(b) 5
(c) 1
(d) 3
Answer:
(b) 5

Question 2.
The financial sectors became more competitive due to entry of __________ banks.
(a) public and private
(b) public and foreign
(c) private and foreign
(d) private and co-operative
Answer:
(c) private and foreign

Question 3.
The Government of India announced the NEP on __________
(a) 24th July 1991
(b) 24th Oct 1991
(c) 24th June 1991
(d) 20th June 1950
Answer:
(a) 24th July 1991

Question 4.
__________ is considered to be the father of NEP.
(a) Dr. Manmohan Singh
(b) Rajiv Gandhi
(c) Narsimha Rao
(d) Arun Jetly
Answer:
(a) Dr. Manmohan Singh

Question 5.
Licensing was made __________ under NEP.
(a) compulsory
(b) strict
(c) privatised
(d) liberal
Answer:
(d) liberal

Question 6.
Under NEP unemployment has __________ due to close down of some industries.
(a) declined
(b) increased
(c) stagnant
(d) no change
Answer:
(b) increased

Question 7.
__________ is included in Navratna status.
(a) ONGC
(b) HAL
(c) MTNL
(d) Railways
Answer:
(a) ONGC

1B. Complete the correlation:

Question 1.
Regulate the foreign exchange : FEMA : : Regulate security market : __________
Answer:
SEBI

Question 2.
Disinvestment : ITDC hotel : : Collaboration : __________
Answer:
Maruti-Suzuki

Question 3.
Abolition of MRTP Act : Liberalization : : Convertibility of rupee : __________
Answer:
Globalisation

Question 4.
Airport Authority of India (AAI) : Miniratna : : Hindustan Petroleum Corporation Ltd (HPCL) : __________
Answer:
Navratnas

Question 5.
Indian Oil Corporation : Navratnas : : Central Public Sector Enterprises : __________
Answer:
Maharatna Companies

Question 6.
SEZ : Trade Liberalisation : : IRDA Act : __________
Answer:
Reforms in Insurance Sector

Question 7.
Abolition of Government License : __________ : : Selling of shares of sick public sector : Disinvestment
Answer:
Delicensing

1C. Suggest the economic terms for given statements:

Question 1.
The transfer of ownership from the public sector to the private sector.
Answer:
Privatisation

Question 2.
Abolishment of the permission of Government for new industrial production etc.
Answer:
Delicensing

Question 3.
Selling public sector units to the private sector.
Answer:
Disinvestment

Question 4.
Interaction of the Indian economy with the rest of the world.
Answer:
Globalisation

Question 5.
To take the benefit of advanced technology the companies of two countries work together.
Answer:
Foreign Collaboration

Question 6.
Policy providing incentives to exporters.
Answer:
EXIM Policy

Question 7.
Companies are given full financial and managerial autonomy.
Answer:
Navratnas

Question 8.
Zone to encourage agricultural exports.
Answer:
Agro Export Zones

Question 9.
Act under which firms get the freedom to take investment decisions.
Answer:
MRTP Act

Question 10.
A board was set up to make decisions regarding sick units.
Answer:
Board of Industrial and Financial Reconstruction (BIFR)

Question 11.
Industry requiring compulsory licensing.
Answer:
Cigarettes

1D. Arrange in proper order:

Question 1.
(a) FERA was replaced by FEMA
(b) Shortage of foreign exchange
(c) Introduction of NEP
(d) Delicensing
Options:
(i) a, c, d, b
(ii) b, c, d, a
(iii) d, b, a, c
(iv) c, a, d, b
Answer:
(ii) b, c, d, a

Question 2.
(a) Poor performance of PSUs
(b) LPG policy
(c) Public sector was playing a dominant role
(d) Role of the private sector increased
Options:
(i) a, c, d, b
(ii) b, c, d, a
(iii) c, a, b, d
(iv) d, b, a, c
Answer:
(iii) c, a, b, d

Question 3.
(a) Demand for software engineers increased in developed countries
(b) Role of the private sector increased
(c) Help to earn foreign exchange
(d) Revolution in IT sector
Options:
(i) b, d, a, c
(ii) a, c, d, b
(iii) c, a, b, d
(iv) d, a, c, b
Answer:
(i) b, d, a, c

1E. Find the odd word out:

Question 1.
Indian companies into foreign collaboration- Maruti – Suzuki, Hero – Honda, Mahindra & Mahindra, Tata – Timken
Answer:
Mahindra & Mahindra

Question 2.
Encouragement to exports – EXIM, SEZ, AEZ, FERA
Answer:
FERA

Question 3.
Units in which disinvestment take place – Maruti, ONGC, ITDC, VSNL
Answer:
ONGC.

1F. Complete the following statements:

Question 1.
Before new economic policy, interest rate was determined by __________
Answer:
RBI

Question 2.
The NEP gave dominant position to the __________
Answer:
private sector

Question 3.
At present 100 percent FDI is allowed in __________
Answer:
electricity generation projects

Question 4.
A country may not attain self sufficiency in food production because of __________
Answer:
globalization

Question 5.
An adverse effect of NEP on farmers is __________
Answer:
indebtedness and poverty of poor farmer

Question 6.
The main objective of NEP, 1991 is to plunge India into __________
Answer:
arena of globalisation

Question 7.
Rapid industrial growth took place after abolition of __________
Answer:
MRTP Act

Question 8.
Two industries reserved for public sector are __________
Answer:
railways and atomic energy

Question 9.
National Renewal Board took the responsibility of providing __________
Answer:
compensation to retrenched workers

Question 10.
Public Sector Units (PSU’s) have been categorised into __________
Answer:
Miniratnas and Maharatnas.

1G. Choose the wrong pair:

Question 1.

Group – ‘A’	Group – ‘B’
(i) SEZ	Export promotion
(ii) IRDA	Regulate insurance activities
(iii) FDI	Promote imports

Answer:
Wrong Pair: FDI – Promote imports

Question 2.

Group – ‘A’	Group – ‘B’
(i) Globalization	Borderless economy
(ii) Disinvestment	Less investment
(iii) Privatization	Transferring ownership of PSUs.

Answer:
Wrong Pair: Disinvestment – Less investment

Question 3.

Group – ‘A’	Group – ‘B’
(i) FDI	Foreign Direct Investment
(ii) FEMA	Fund Exchange Management Act
(iii) IRDA	Insurance Regulatory Development Authority

Answer:
Wrong Pair: FEMA – Fund Exchange Management Act.

1H. Match the correct pairs:

Question 1.

Group – ‘A’	Group – ‘B’
1. BHEL	(a) Freedom for investment
2. Compulsory licensing	(b) Agriculture
3. Abolition of MRTP	(c) Navratnas
4. Primary sector	(d) Mixed economy
5. India	(e) Alcohol, Tobacco

Answer:
Correct Pairs: (1) – (c), (2) – (e), (3) – (a), (4) – (b), (5) – (d).

Question 2.

Group – ‘A’	Group – ‘B’
1. Liberalization	(a) 1991
2. NEP	(b) Profit motive
3. Public sector	(c) Removing restrictions
4. Private sector	(d) Service sector
5. Tertiary sector	(e) Welfare motive

Answer:
Correct Pairs: (1) – (c), (2) – (a), (3) – (e), (4) – (b), (5) – (d).

2. Identify and explain the concepts from the given illustrations:

Question 1.
It is the regulator of the securities market in India.
Answer:
Securities and Exchange Board of India (SEBI).
SEBI was established on 12th April 1992. SEBI has the power to approve bye-laws of Securities Exchanges, inspect the books of account of financial intermediaries, registration of brokers and sub-brokers.

Question 2.
Abolition of government license to carry any business or industrial activity.
Answer:
Delicensing.
Except for 18 specified industries of strategic importance, all industries required a license. Later on, only 4 industries required compulsory licensing. They are – Electronic Aerospace and defense equipment, Industrial Explosives, Hazardous chemicals, Drugs and Pharmaceuticals, and Cigarettes.

3. Assertion and Reasoning questions:

Question 1.
Assertion (A): The creation of NRB is an important measure of privatization.
Reasoning (R): To solve the problem of unemployment and poverty among the workers of closed public sector units.
(a) (A) is TRUE but (R) is FALSE
(b) (A) is FALSE but (R) is TRUE
(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
(d) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)
Answer:
(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)

Question 2.
Assertion (A): In India FDI has very limited scope since 1991.
Reasoning (R): Foreign capital is allowed in the Indian economy without any restrictions.
(a) (A) is TRUE but (R) is FALSE
(b) (A) is FALSE but (R) is TRUE
(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
(d) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)
Answer:
(b) (A) is FALSE but (R) is TRUE

Question 3.
Assertion (A): In post NEP imports of the country has increased.
Reasoning (R): It helps to solve the problem of inflation.
(a) (A) is TRUE but (R) is FALSE
(b) (A) is FALSE but (R) is TRUE
(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)
(d) (A) and (R) both are TRUE but (R) is not the correct explanation of (A)
Answer:
(c) (A) and (R) both are TRUE and (R) is the correct explanation of (A)

4. Distinguish between:

Question 1.
Privatisation and Globalisation.
Answer:

Privatisation	Globalisation
1. Privatisation refers to including private ownership in publicly owned enterprises.	1. Globalisation refers to the process of development of the world into a single integrated economic unit.
2. It leads to the transfer of ownership, management, and control to the private sector.	2. It involves the removal of quotas, tariffs, etc. to facilitate greater mobility of factors and goods.
3. It takes place within the country.	3. It takes place all over the world.
4. By privatisation the country is benefited.	4. By globalisation the whole world is benefited.
5. It helps the country’s economy to grow.	5. It helps the world as a whole to grow.

Question 2.
Liberalisation and Privatisation.
Answer:

Liberalisation	Privatisation
1. Economic reforms which liberalize the economy from government control are called liberalisation.	1. Privatisation refers to including private ownership in publicly owned enterprises.
2. It leads to the opening of the economy to international competition.	2. It leads to the transfer of ownership, management, and control to the private sector.
3. It gives the opportunity for technology improvement which benefits producers and consumers.	3. It encourages monopoly power and may lead to the exploitation of consumers and workers.
4. It ignores the welfare aspect in the whole world.	4. It ignores the welfare aspect within the country.

Question 3.
Agriculture and Industry.
Answer:

Agriculture	Industry
1. Any productive activity which is carried on by using land and another free gift of nature is considered as agriculture.	1. Any productive activity in which processing on manufacturing takes place is called as ‘Industry’.
2. It is our primary sector.	2. It is considered as our secondary sector.
3. It is also known as an unorganised sector.	3. It is also known as an organised sector.
4. Even the unskilled labourers also gain employment opportunity here.	4. Only skilled people will gain employment opportunities here.
5. As a result of NEP, yield per acre could increase (or) productive capacity increased when we started using HYV seeds.	5. As a result of NEP, India could not only export traditional goods but also machinery, chemicals, computers, etc.
6. The negative impact of NEP (globalisation) in this sector leads to poverty, unemployment, indebtedness, etc. among the rural poor.	6. The negative impact of NEP on this sector leads to the concentration of economic and political power in few hands.

Question 4.
Private Sector and Public Sector.
Answer:

Private Sector	Public Sector
1. Private sector is that sector where industries are owned and managed by private individuals or businessmen.	1. Public sector is that sector where industries are owned, managed, and operated by the government.
2. E.g. Most of the small-scale industries and cottage industries are owned by the private sector.	2. E.g. Bharat Petroleum Ltd., Indian railways, etc. are owned by the public sector.
3. Its main aim is to earn profit.	3. Its main aim is to promote social welfare.
4. Quick decisions can be taken and managerial efficiency is high.	4. There is a delay in decision making and efficiency is lower.
5. Exploitation of workers is more and inequality increases.	5. Exploitation of workers is less and inequality reduces.

5. Answer the following:

Question 1.
Explain any two positive effects or achievements of NEP.
Answer:

• Improvement in educational standards: Standards of educational institutions are improving. Our students are getting opportunities to study abroad.
• Diversification of cropping: Due to globalization, the farmers have shifted from practicing traditional cropping to non-traditional cropping patterns.

Question 2.
What is globalization? How does it help to increase foreign capital?
Answer:
Globalization means the interaction of the domestic economy with the rest of the world with regard to foreign investment, trade, production, and financial matters. The government has opened the economy to foreign investments. Foreign capital is allowed in India without any restrictions. This flow of foreign capital encouraged high-priority industries to boost their production.

Question 3.
What are the objectives of NEP 1991?
Answer:

• To make the Indian economy market-oriented by introducing it in the arena of globalization. To bring down the rate of inflation.
• To move towards a higher economic growth rate.
• To build sufficient foreign exchange reserve.
• To achieve economic stabilization.
• To promote international trade by removing restrictions.
• To increase the participation of private players in all sectors of the economy.
• To reduce the reserved numbers of sectors for the government.
• To reduce the gap between import and export (BOP).

Question 4.
What is Privatization?
Answer:
Privatisation means allowing the private sector to set up industries that were previously reserved for the public sector. Privatisation is the process of transferring ownership of Public Sector Units (PSUs) to the private sector. Privatisation led to disinvestment, dereservation, the establishment of BIFR and NRB, etc.

Question 5.
What are the negative effects of NEP 1991 on farmers?
Answer:
Due to a lack of capital, poor farmers were unable to grow exportable crops. They were forced to sell their land or take extreme steps. Thus, they faced the problem of indebtedness and poverty.

Question 6.
Explain any 4 features of Economic Policy, 1991.
Answer:
Features of Economic Policy, 1991:

• Delicensing: The new industrial policy abolished all industrial licensing, except 18 specified industries related to security and strategic concerns and social reasons.
• Abolition of MRTP Act: No prior approval of the MRTP commission is now required for setting up industrial units by the large business houses.
• Encouragement to Small Scale Industries (SSI): The investment limit of the SSI has been increased up to 5 crores which will help to upgrade their machinery.
• Encouraging Foreign Investment: Many industrial units were open to foreign investment under the 1991 policy. The limit was raised to 51% and 100% in some industries and 100% in mining, pollution control equipment, electricity generation projects, ports, etc.

Question 7.
State the measures taken for Liberalisation.
Answer:
Measures were taken for Liberalisation:

• Banks are free to determine the rate of interest. Earlier it was determined by RBI.
• The industries are free to expand and produce. The producers are now free to produce anything on the basis of demand in the market.
• Companies falling under MRTP Act are given a concession. Firms are free to make decisions regarding investment.
• FEMA (Foreign Exchange Management Act) was introduced in place of FERA.
• Domestic and foreign investment is allowed in infrastructure to improve its quality.
• SEBI was formed to secure the interest of the investors.

6. State with reasons whether you agree or disagree with the following statements:

Question 1.
Agriculture and industry are interdependent or complementary.
Answer:
Yes, I do agree with the statement.

• In a country like India, there are many agro-based industries like sugar, textile, oil, etc.
• These industries depend on agriculture for their raw materials.
• Hence, agriculture supports industries.
• Industries also support agriculture in the sense that new methods of agriculture require more use of pump sets, fertilizers, pesticides, agricultural implements, etc.
• All these are produced and supplied by the industrial sector.
• With the help of these inputs, farmers produce more output.
• Hence, the statement agriculture and industry are interdependent is a true statement.

Question 2.
There are no benefits of globalisation.
OR
There is no impact of globalisation on the Indian economy.
Answer:
No, I do not agree with the statement.
Globalisation for any country is important and the benefits are as follows:

• Globalisation helps developing countries to improve overall economic management and make their economies efficient.
• An increase in competition reduces the cost and improves the quality of products.
• More varieties are made available to consumers and at lower prices.
• Countries can get access to foreign investment and keep interest rates low.
• Political stability is established.

Question 3.
The NEP has not achieved anything in India.
Answer:
No, I do not agree with the statement.

• NEP brought a revolution in the IT sector which helps to earn foreign exchange.
• It strengthened the financial sector by raising the competition among the banks.
• The standard of educational institutions is improving.
• It helps to improve the conditions of the BOP.
• It helped to increase the exports of our country.
• It also helped farmers by diversifying their cropping pattern i.e. from traditional products to non-traditional products.

7. Answer in detail:

Question 1.
Explain the measures taken for Privatisation.
Answer:
Privatisation means allowing the private sector to set up industries that were previously reserved for the public sector. Privatisation is the process of transferring ownership of Pubilc Sector Units (PSUs) to the private sector.

Measures were taken for Privatisation:

• Dereservation Policy: The number of industries reserved for the public sector has been gradually reduced to only two and all other industries are deserved i.e. opened up for the private sector.
• Establishment of BIFR: Board of Industrial and Financial Reconstruction (BIFR) has been set up to make the decisions about sick public sector units i.e. whether to close or revive them.
• Creation of NRB: National Revival Board (NRB) has been set up to take care of unemployed workers of the sick units.
• Status of Navratna: On the basis of strategic importance, nine public sector enterprises were selected and given the status of ‘Navratnas’ i.e. they were given the full managerial and financial freedom to make them global giants. Some are ONGC, BHEL, HPCL, SAIL, etc.
• Disinvestment: This was an important step undertaken to reform public sector. The Government started selling PSUs to the private sector, those are running at a loss. e.g. Maruti Udyog Ltd. VSNL, etc.

Question 2.
What is Liberalisation? Explain the measures taken for liberalisation.
Answer:
Liberalisation means ‘economic freedom’ or ‘freedom for economic decisions’. All economic units are free to take decisions for self-interest e.g. consumer, producer, owner of a factor of production, etc.

Measures were taken for Liberalisation:

• The flexibility of Interest rate: Banks are free to determine the rate of interest. Earlier it was determined by RBI.
• Freedom for expansion of industries: The industries are free to expand and produce. The producers are now free to produce anything on the basis of demand in the market.
• Abolition of Monopolies and Restrictive Trade Practices: Companies falling under MRTP Act are given concession. Firms are free to make decisions regarding investment.
• Reforms in FERA: FEMA (Foreign Exchange Management Act) was introduced in place of FERA. It will encourage international trade.
• Investments in infrastructure: Domestic and foreign investment is allowed in infrastructure to improve its quality.
• Encouragement to foreign technology: The use of foreign technologies allowed in high-priority industries resulting in cost cuts.
• SEBI: SEBI was formed to secure the interest of the investors and to regulate the securities market.

Question 3.
Write about major achievements of the NEP of 1991.
Answer:
Major Achievements:

• Revolution in the IT sector: The contribution of the IT sector to national income has considerably increased. The demand for software engineers has increased in the developed countries.
• Improved financial facilities: The financial sector has become more competitive due to the entry of private and foreign banks.
• Improvement in educational standards: Standards of educational institutions are improving and our students are getting more opportunities to study abroad.
• Increase in exports: Due to rising in export, the conditions of our adverse balance of payment is improving.
• Diversification of cropping: Due to globalization, the farmers have shifted from practicing traditional cropping to non-traditional cropping patterns.
• Solves the problem of scarcity: Due to liberal imports, the economy can overcome the scarcity of goods and raw materials.

Question 4.
Critically evaluate the NEP of 1991.
Answer:
Though NEP, 1991 brought many achievements to the economy, it has also brought failures in many areas:
Failures of Economic Policy, 1991:

• Lack of self-sufficiency: Globalisation led to the diversion of production to export-oriented products which were demanded globally. This failed to achieve self-sufficiency in the home country.
• Adverse effect on the domestic market: Imported goods were cheaper and were flooded in the Indian market due to liberal import policy. Thus, domestic markets were adversely affected due to globalisation and liberalisation.
• Affected poor farmers: Poor farmers were not able to produce goods as per the export standards due to a lack of capital. So, the benefits of globalisation and liberalisation reached rich farmers only. This led to the selling of lands by small farmers for their survival.
• Unhealthy competition: Indian companies could not match the competition with multinational companies and as a result, many Indian Companies had to declare themselves as ‘sick units’ or had to close down the industry-leading to unemployment and poverty in the society.
• Neglects welfare aspect: Privatisation led to an increase in prices of products and services, as private firms are profit-oriented and not welfare-oriented. They are more interested in their profits rather than the welfare of society. Thus, the economic policy of 1991 failed to achieve the welfare of the masses.
• Unemployment: Closing down of companies due to unhealthy competition by multinational companies, led to unemployment in the economy. An increase in the unemployment level in the country led to poverty and inequality.

Question 5.
How globalization will help to increase foreign exchange reserves?
Answer:
Globalisation refers to a borderless economy having a free flow of goods and services, capital, labour, technology, etc.
In other words, it means integrating the economy of a country with the world economy.

Globalisation has helped the economy to increase foreign exchange reserve in the following ways:

• Encouragement to Foreign Capital: Due to globalisation, foreign investors were allowed to invest in Indian companies. Thus, foreign capital started flowing into various sectors of the economy. This led to an increase in the earnings of foreign currency.
• Convertibility of Rupee: Due to globalisation and new economic policy, Rupee was made fully convertible ‘ into all current account transactions. This made foreign transactions easy and hence, the foreign currency started flowing into our economy.
• Foreign Collaboration: Due to liberalization and globalisation, any trade was possible throughout the world. Indian companies made foreign collaboration to increase their business. This led to the flow of foreign exchange currency in India. E.g. Maruti-Suzuki, Hero Honda, etc.
• Encouragement to Export: Due to the introduction of the Exim Policy, various incentives were allowed to exporters which made exporters do business on a larger scale. This increased India’s export and foreign exchange currency reserves. Thus to conclude, globalisation has overall encouraged to increase the foreign exchange reserves.

8. Read the following passage and answer the questions given below:

In the Second Five Year Plan (1956), the public sector played a major role by setting up basic and heavy industries for the economic and industrial development of India. In India, most of the Public Sector Units (PSUs) were working inefficiently. So, many PSUs were running in loss. PSUs never have competitive nature. PSUs know that whenever they will go into loss, they will be bailed out by the government. This attitude kills that competitiveness and cost-effective working nature of the unit which is necessary to earn profit.

In 1991, the Government decided to transfer ownership to the private sector which is more efficient in management, allocation of resources, better services to its customers, etc. Also, it helps to develop the local capital market and source of revenue to the government. Videsh Sanchar Nigam Limited (VSNL) was established in 1986 by the Government of India to bring internet to our country. In 2002, the Government of India decided to disinvest its shareholdings. TATA group acquired a 45% stake in VSNL. On 13th February 2008, VSNL was completely acquired by TATA Group and renamed TATA Communications.

At present, TATA Communications connects its customers in global offices at speed of up to 10 Gbits. It delivers voice, video, and data connectivity through subsea cable networks in 200 countries and territories. In 2018, annual income is 5575.96 crores and net profit (after deducting taxes) is 266.63 crores.

Question 1.
In which five-year plan emphasis is given to developing the public sector?
Answer:
In the second five-year plan, emphasis was given to develop the public sector.

Question 2.
Identify the reasons for the poor performance of PSUs.
Answer:
PSUs were working inefficiently, lack of competitive nature, dependence on bailed out by the government, lack in cost-effective working nature, etc. led to poor performance of PSUs.

Question 3.
Find out the economic concepts from this case study.
Answer:
Privatisation and Disinvestment.

Question 4.
Explain the benefits of privatisation.
Answer:
Under privatisation, ownership is transferred from the public sector to the private sector because the private sector is more efficient in resource allocation, management and provides better services to the customers. Privatization can be an important source of revenue to the government and help to develop local capital markets.

Question 5.
Explain the growth of VSNL after privatisation.
Answer:
In 2008, privatisation of VSNL took place. VSNL was completely acquired by the TATA group and renamed TATA Communication. At present TATA Communication is providing internet services globally. Its cable network is in 200 countries and territories. The annual income is 5575.96 crores and the net profit is 266.63 crores in 2018.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 8 Poverty in India Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 8 Poverty in India

1A. Choose the correct option:

Question 1.
____________ poverty refers to lack of minimum subsistence. [Absolute/Relative/General]
Answer:
Absolute

Question 2.
____________ poverty is a universal phenomenon. [Relative/Absolute/Rural]
Answer:
Relative

Question 3.
Poverty is ____________ phenomenon. [a social/an economical/a political]
Answer:
a social

Question 4.
According to planning commission, an individual in urban area requires ____________ calories per day. [2000/2100/2400]
Answer:
2100

Question 5.
____________ poverty refers to Absence of minimum subsistence. [Relative/Absolute/General]
Answer:
Absolute

Question 6.
____________ poverty cannot be removed completely. [Absolute/Relative/Urban]
Answer:
Relative

Question 7.
An average Indian requires ____________ calories from his/her daily consumption of food. [2250/2550/2200]
Answer:
2250

Question 8.
When a person is unable to consume 2100 calories per day, he/she is considered to be ____________ poor. [urban/ ural/relative]
Answer:
urban

Question 9.
____________ poverty is mostly found among agricultural and landless labourers or marginal farmers. [Urban/Rural/Relative]
Answer:
Rural

Question 10.
Poverty line is an ____________ line. [imaginary/straight/visible]
Answer:
imaginary

Question 11.
According to World Bank, India’s ____________ population lived below poverty line. [21.2%/5%/20%]
Answer:
21.2%

1B. Complete the correlation:

Question 1.
National Health Mission : Health : : Sarva Shiksha Abhiyan : ____________
Answer:
Education

Question 2.
Antyodaya Anna Yojana : Food Security : : Jan Dhan Yojana : ____________
Answer:
Financial inclusion

Question 3.
NUT Aayog : Poverty Line : : Anti Poverty Programme : ____________
Answer:
Garibi Hatao

Question 4.
Pradhan Mantri Awaas Yojana : Housing : : Swachch Bharat Mission : ____________
Answer:
Sanitation

Question 5.
Material dimension : No access to safe drinking water : : ____________ : social discrimination
Answer:
Non-material dimensions

Question 6.
Rural Area : ____________ : : Urban Area : 2100 calories
Answer:
2400 calories

Question 7.
Low agricultural productivity : ____________ : : Slow individual growth : Urban Poverty
Answer:
Rural Poverty

Question 8.
Effects of poverty : ____________ : : Causes of poverty : Inflation
Answer:
Anti social activities.

1C. Suggest the economic terms for the given statement:

Question 1.
An imaginary line that divides the poor and non-poor.
Answer:
Poverty Line

Question 2.
The cycle of low income, low saving, low investment, low production, less employment.
Answer:
The vicious circle of poverty

Question 3.
Poverty where we can find unemployed people, slums, unhygienic conditions, crime, thefts, etc.
Answer:
Urban poverty

Question 4.
Noted Indian economist and recipient of Bharat Ratna.
Answer:
Prof Amartya Sen

Question 5.
Anti-poverty programme during British Period.
Answer:
‘Garibi Hatao’

Question 6.
Deprivation of basic needs to people living in villages.
Answer:
Rural Poverty

Question 7.
The spillover effect of migration among rural poor.
Answer:
Urban Poverty

Question 8.
The situation in which there is a continuous rise in the price of essential commodities.
Answer:
Inflation

1D. Arrange in proper order:

Question 1.
Capital formation, Saving, Income, Investment, Production.
Answer:
Income, Saving, Investment, Capital formation, Production.

Question 2.
Middle income. Low income, Upper Middle income, High income.
Answer:
High income, Upper middle income, Middle income, Low Income.

Question 3.
Saffron Ration Cards, White Ration Cards, Yellow Ration Cards.
Answer:
White Ration Cards, Saffron Ration Cards, Yellow Ration Cards.

1E. Find the odd word out:

Question 1.
Food items – Fish, Salt, Beverages, Durable Goods.
Answer:
Durable Goods

Question 2.
Low poverty ratio – Himachal Pradesh, Jammu and Kashmir, Punjab, Tamil Nadu.
Answer:
Himachal Pradesh

Question 3.
Cause of poverty – Inflation, Population explosion, Unemployment, Industrialization.
Answer:
Industrialization

Question 4.
Effects of poverty – Low national income, Anti social activities, Population explosion, Low standard of living.
Answer:
Population explosion

Question 5.
Non-food items – Durable goods, Footwear, Fuel and Light, Salt and Sugar.
Answer:
Salt and Sugar

Question 6.
Economic effects of poverty – Low national income, Anti socio activities, Law standard of living, Malnutrition and starvation.
Answer:
Anti socio activities

1F. Complete the following statements:

Question 1.
The Employment Guarantee Scheme was launched in the state of ____________
Answer:
Maharashtra in 1972

Question 2.
An individual in the Urban area requires ____________
Answer:
2100 calories per day

Question 3.
Antyodaya Anna Yojana was launched in ____________
Answer:
December 2000

Question 4.
Comparison between standard of living is known as ____________
Answer:
Relative Poverty

Question 5.
Poverty line is an ____________
Answer:
imaginary line

Question 6.
Poverty line is based on ____________
Answer:
household consumption expenditure

Question 7.
Wide inequalities have been observed in the ____________
Answer:
distribution of income

Question 8.
Inflation refers to a continuous rise ____________
Answer:
in the price

Question 9.
‘Vicious Circle of Poverty’ concept is given by ____________
Answer:
Prof. Ragnar Nurkse

Question 10.
Minimum Wages Act was passed in 1948, to ____________
Answer:
provide fair wages

1G. Choose the wrong pair:

Question 1.

Group ‘A’	Group ‘B’
(i) SGSY	Self-employment
(ii) SBM	Sanitation
(iii) JDY	Literacy
(iv) PAY	Housing

Answer:
Wrong pair: JDY – Literacy

Question 2.

Group ‘A’	Group ‘B’
(i) Rural Poverty	2400 Calories
(ii) Urban Poverty	2100 Calories
(iii) Average Calories	4500 Calories
(iv) Absolute Poor	Minimum Subsistence

Answer:
Wrong pair: Average Calories – 4500 Calories

Question 3.

Group ‘A’	Group B’
(i) Absolute Poor	Lack of Nutrition
(ii) Relative Poor	Comparison
(iii) Rural Poor	Marginal Farmer
(iv) Urban Poor	Industrialization

Answer:
Wrong pair: Urban Poor – Industrialization

Question 4.

Group ‘A’	Group ‘B’
(i) Anti Poverty Programme	Garibi Hatao
(ii) Poverty Line	Imaginary Line
(iii) Vicious Circle	Poverty
(iv) Cause of Poverty	Equal Distribution of Income

Answer:
Wrong pair: Cause of Poverty – Equal Distribution of Income

Question 5.

Group ‘A’	Group ‘B’
(i) Absolute Poverty	India
(ii) Relative Poverty	The U.S.A.
(iii) Urban Poverty	More in India
(iv) Rural Poverty	More in the U.S.A.

Answer:
Wrong pair: Rural Poverty – More in the U.S.A

1H. Choose the correct pairs:

Question 1.

Group ‘A’	Group ‘B’
1. Absolute poverty	(a) Unorganised labour
2. Relative poverty	(b) Small farmer
3. Rural poor	(c) Health Insurance
4. Urban poor	(d) The U.S.A.
5. Slums	(e) India
	(f) Unhygienic conditions

Answer:
(1) – e, (2) – d, (3) – b, (4) – a, (5) – f

Question 2.

Group ‘A’	Group ‘B’
1. Village artisans	(a) 2100 calories
2. Poverty line	(b) Universal
3. Urban poverty	(c) Urban poor
4. Rural poverty	(d) Rural poor
5. Relative poverty	(e) 2400 calories
	(f) Imaginary line

Answer:
(1) – d, (2) – f, (3) – a, (4) – e, (5) – b.

Question 3.

Group ‘A’	Group ‘B’
1. Control of population	(a) Comparison between income group
2. Absolute poverty	(b) Garibi Hatao
3. Relative poverty	(c) Poverty line
4. Anti-poverty programme	(d) Population
5. NITI Aayog	(e) Family Planning programme
	(f) Absence of minimum subsistence

Answer:
(1) – e, (2) – f, (3) – a, (4) – b, (5) – c.

2. Assertion and Reasoning questions:

Question 1.
Assertion (A): Urban poverty is more harmful than rural poverty.
Reasoning (R): The poor in the urban areas live in unhygienic conditions which are hazardous to their health,
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 2.
Assertion (A): The poverty line differs from country to country.
Reasoning (R): A person described as poor in the USA will not be placed below the poverty line category in India.
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).

3. Distinguish between:

Question 1.
Urban Poverty and Rural Poverty.
Answer:

Urban Poverty	Rural Poverty
(i) Poverty found in urban areas is known as Urban poverty.	(i) Poverty found in rural areas is known as Rural poverty.
(ii) A person who is unable to consume more than 2100 calories experiences Urban poverty.	(ii) A person who is unable to consume more than 2400 calories experiences poverty.
(iii) It is mostly found among the village artisans, the landless agricultural labourers, the small and marginal farmers.	(iii) It is mostly found among the rural migrate in the urban area, who lives in slums, lack infrastructure, illiteracy, unemployed people, etc.
(iv) It can be eradicated by agricultural growth and development, anti-poverty programmes like ‘garibi hatao’ etc.	(iv) It can be eradicated by industrialization, affordable housing, etc.

Question 2.
Absolute Poverty and Relative Poverty.
Answer:

Absolute Poverty	Relative Poverty
(i) Absolute poverty is a situation where an individual is not able to consume minimum calories intake.	(i) Relative poverty is a situation where there is a comparison of income or living standard of different income groups.
(ii) Absolute poverty can be eradicated with the help of effective anti-poverty programmes.	(ii) Relative poverty can not be eradicated completely.
(iii) It exists in developing and underdeveloped countries like India, etc.	(iii) It is a universal phenomenon and is found in all countries of the world.
(iv) Absolute poverty indicates the minimum subsistence level of a section of society.	(iv) Relative poverty indicates the existence of income inequalities between different income groups.

4. Answer the following:

Question 1.
What are the economic effects of poverty?
Answer:
Economic effects of poverty:

• Low national income: As a substantial number of people are poor, their income, saving, and investment are inadequate. This results in low capital formation.
• Adverse effect on production: Since the capital for modernization is not available, the farmers continue with the outdated methods. Similarly, the industry does not have funds for modernization.
• Misallocation of resources: To help the poor, the government spends a huge amount on welfare activities. This restricts the allocation of resources for productive activities.
• Low standard of living: Due to low per capita income and low per capita consumption, people are forced to live in slums. This is reflected in the low standard of living.
• Malnutrition and starvation: Poor people can not afford a balanced diet due to low income. They do not get the minimum calories from their diet.

Question 2.
What are the causes of rural poverty?
Answer:
Causes of rural poverty:

• Population explosion: Due to the rapid growth of population and lesser growth in employment, poverty is increasing.
• Slow economic growth: Agricultural and industrial growth is happening at a slower pace, thus contributing to poverty.
• Unemployment: Unemployment is a major cause of poverty because of which poor people are not able to get jobs as well as income.
• Economic inequalities: A larger percentage of national income is in a few rich people’s hands, who exploit poor people, which in turn causes poverty.
• Inflation: Increase in the price of commodities without rising in income put more pressure on poor people.
• Regional imbalance: Some states in India are having lesser economic growth as compared to other states.
• The vicious circle of poverty: Due to low consumption, low saving, low production, low employment, and low income, the vicious circle of poverty has trapped India.

Question 3.
Explain the concepts of poverty.
Answer:
Concepts of Poverty: There are two major concepts of poverty in India, which include absolute poverty and relative poverty.

• Absolute Poverty: Absolute Poverty can be measured in terms of calorie intake on daily basis. As per the standard set by the planning commission, in case a person is not able to take a calorie intake of 2400 calories in a rural area and 2100 calories in an urban area then the person is called absolute poor. It is found in developing and under-developing countries. It can be eradicated with proper planning of the government.
• Relative Poverty: Relative poverty is a universal phenomenon and is found in all countries. It can be measured through comparison of standard of living of different sections of people in terms of different income, wealth, consumption, etc. It cannot be completely eradicated from any country.

Question 4.
Write notes on types of poverty.
Answer:
Types of Poverty:

(i) Rural Poverty: Poverty prevailing in rural areas is called rural poverty. A person who consumes less than 2400 calories per day is said to be a rural poor. This poverty is mostly found among poor farmers, artisans, landless laborers, etc. It can be removed by agricultural growth and anti-poverty programmes.

(ii) Urban Poverty: Poverty prevailing in urban areas is called urban poverty. A person who consumes less than 2100 calories per day is said to be an urban poor. This poverty is more found among people who live in slums with unhygienic conditions or are employed in low-paid jobs. It can be removed by using labor-intensive techniques, growth of employment programs, etc.

(iii) Absolute Poverty: Absolute poverty is a condition in which even the basic needs of a person are not satisfied. A person who is unable to consume 2100 calories per day in urban areas or 2400 per day in rural areas, is said to be absolutely poor. It is found in poor and developing countries of the world like India, Bangladesh, Pakistan, etc.

(iv) Relative Poverty: Relative poverty is based on the comparison of the lower-income groups with the higher-income groups. It is judged on the basis of per capita income and per capita consumption expenditure of people in a country. It is a universal phenomenon and is found in all countries.

5. State with reasons whether you agree or disagree with the following statement:

Question 1.
Absolute poverty can be eradicated.
Answer:
Yes, I agree with the statement.

• Absolute poverty can be eradicated.
• Developed countries have eradicated absolute poverty.
• It is only in developing countries that absolute poverty is seen.
• In these countries problems like overpopulation, slow economic development, illiteracy, agricultural and industrial backwardness, defective land system, unemployment, inequalities when solved, the problem of absolute poverty will also be solved.
• In this manner, the problem of absolute poverty can be eradicated.

Question 2.
Poverty is not responsible for the degradation of the environment.
Answer:
No, I do not agree with the statement.

• Poverty is a part of the society or population which is not able to meet even its basic necessities.
• Poor people do not have sufficient income.
• They don’t possess money for proper food, clothing, shelter, health, and education.
• They live in unhygienic conditions.
• Thus, to satisfy their basic requirement, they cause harm to the quality of the environment.

Question 3.
Controlling population growth can reduce poverty in India.
Answer:
Yes, I agree with the statement.

• Poverty is a social phenomenon.
• Population explosion leads to poverty in India.
• In order to remove poverty, it is necessary to create awareness about the importance of family planning to the people.
• The government needs to formulate appropriate population policies to keep in check for population growth in the country.
• If the population is controlled, there will be enough scope for employment for all in the country.
• Full employment will lead to growth in per capita income, which in turn will lead to an increase in the standard of living of the people.
• Thus, controlling population growth can reduce poverty in India.

6. Answer in detail:

Question 1.
Explain the causes of poverty in India.
Answer:
The causes of poverty are as follows:

• Population explosion: Due to the increase in population, poverty is growing rapidly.
• Slow economic growth: There is slow industrial and agricultural growth due to which the economy is growing slowly.
• Unemployment and underemployment: Unemployment is the major factor of increased poverty.
• Economic inequalities: There are inequalities in the distribution of income, assets, consumption expenditure, which in fact have increased poverty.
• Inaccessibility to infrastructural facility: Due to lack of sufficient income, purchasing power is less. This leads to the inaccessibility of infrastructure such as energy, transport, communication, etc.
• Inflation: Inflation is the major cause of poverty where prices are increased on basic food and commodity.
• Regional imbalance: Economic development of some of the states in India is happening at a lower growth rate thus creating poverty.
• The vicious circle of poverty: Vicious circle of poverty can be explained, where all the factors are interrelated with each other like low national income, low per capita income, low saving, low capital formation, low production, less employment resulting in poverty.
• Other factors: Gender discrimination, corruption, natural disasters, caste, religion are some of the other factors which lead to poverty.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 7 Unemployment in India Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 7 Unemployment in India

1A. Choose the correct option:

Question 1.
Disguisedly unemployed labour has ___________ marginal productivity.
(a) zero
(b) one
(c) minimum
(d) maximum
Answer:
(a) zero

Question 2.
Introduction of computer causes ___________ unemployment.
(a) technological
(b) structural
(c) frictional
Answer:
(a) technological

Question 3.
Defective education system causes ___________ unemployment.
(a) educated
(b) technological
(c) frictional
(d) rural
Answer:
(a) educated

Question 4.
Unemployment during the off season is called ___________ unemployment.
(a) urban
(b) seasonal
(c) disguised
(d) involuntary
Answer:
(b) seasonal

Question 5.
Unemployment during recession is called ___________ unemployment.
(a) cyclical
(b) frictional
(c) structural
(d) voluntary
Answer:
(a) cyclical

Question 6.
Unemployment due to power cut is called ___________ unemployment.
(a) frictional
(b) cyclical
(c) seasonal
Answer:
(a) frictional

Question 7.
Educated unemployment is ___________ unemployment.
(a) open
(b) hidden
(c) cyclical
Answer:
(a) open

Question 8.
Employment Guarantee scheme was first introduced in ___________
(a) Maharashtra
(b) Karnataka
(c) Kerala
(d) Orissa
Answer:
(a) Maharashtra

Question 9.
Employment Guarantee Scheme was started in the year ___________
(a) 1972
(b) 1969
(c) 1970
Answer:
(a) 1972

Question 10.
Post graduate working as a peon is called ___________
(a) underemployment
(b) unemployment
(c) structural unemployment
Answer:
(a) underemployment

1B. Complete the correlation:

Question 1.
Disguised Unemployment : Rural Unemployment : : Frictional Unemployment : ___________
Answer:
Urban unemployment

Question 2.
Offseason : Seasonal Unemployment : : Excessive pressure on land : ___________
Answer:
Disguised unemployment

Question 3.
Involuntary Unemployment : People are willing to work : : ___________ : Person capacity to work is under utilised
Answer:
Underemployment

Question 4.
Technological Unemployment : Introduction of robotic technology : : ___________ : Breakdown of Machinery
Answer:
Frictional unemployment

Question 5.
Horse carts had been replaced by auto rickshaws : Structural unemployment : : Period of depression : ___________
Answer:
Cyclical unemployment

Question 6.
Employment Guarantee Scheme : 28th March 1972 : : Swarnjayanti Gram Swarozgar Yojana : ___________
Answer:
April 1999

Question 7.
Training about 2 lakh rural youth every year : Training rural youth for self-employment : : Wage Employment Scheme : ___________
Answer:
Jawahar Rozgar Yojana

Question 8.
MGNREGS : at least 100 days of guaranteed wage employment : : TRYSEM : ___________
Answer:
Training about 2 lakh rural youth every year.

1C. Suggest the economic terms for the given statements:

Question 1.
A situation where people are willing to work but unable to get a job.
Answer:
Unemployment

Question 2.
A person working less than fourteen hours per week.
Answer:
Unemployed

Question 3.
A person working 15-28 hours a week.
Answer:
Underemployed

Question 4.
A person working 8 hours per day.
Answer:
Employed

Question 5.
Type of self unemployment.
Answer:
Voluntary unemployment

Question 6.
The situation in which all available resources are used inefficiently manner.
Answer:
Full employment

Question 7.
Unemployment is found in villages.
Answer:
Rural unemployment

Question 8.
Unemployed during the slack season.
Answer:
Seasonal unemployment

Question 9.
Unemployment was found among graduates and postgraduates.
Answer:
Educated unemployment

Question 10.
Unemployment is created due to breakdown of machinery, power failure, etc.
Answer:
Frictional unemployment

1D. Find the odd word out:

Question 1.
Concept of unemployment – Involuntary unemployment, Voluntary unemployment, Underemployment, Frictional unemployment.
Answer:
Frictional unemployment

Question 2.
State with a low rate of unemployment – Goa, Punjab, Gujarat, Bihar.
Answer:
Gujarat

Question 3.
Economic effects of Unemployment – Social tension and unrest, Loss of human dignity, Waste of human resources, Helplessness.
Answer:
Waste of human resources.

1E. Complete the following statements:

Question 1.
Structural unemployment arise due to ___________
Answer:
a drastic change in the economic structure of a country

Question 2.
Unemployment due to cyclical fluctuations in level of business activity is called as ___________
Answer:
Cyclical unemployment

Question 3.
Scheme introduced to provide productive employment to rural population is ___________
Answer:
Employment Guarantee Scheme

Question 4.
Excessive pressure on land leads to ___________
Answer:
disguised unemployment

Question 5.
Unemployment found in towns and cities are called as ___________
Answer:
urban unemployment

Question 6.
Technological unemployment arises because of ___________
Answer:
changes in technology

Question 7.
Frictional unemployment is caused due to breakdown of ___________
Answer:
machinery, power failure, strikes, etc.

Question 8.
Hypothetical situation where all available resources are used efficiently is termed as ___________
Answer:
Full employment

Question 9.
A person is considered unemployed if he works for ___________
Answer:
less than 14 hours per week

Question 10.
Disguised Unemployment is also known as ___________
Answer:
invisible unemployment

1F. Choose the wrong pair:

Question 1.

Types of Unemployment	Reasons
1. Seasonal unemployment	(a) Due to slack season
2. Disguised unemployment	(b) Due to more people working than actual
3. Educated unemployment	(c) Due to imbalance between job opportunities and the number of educated youth
4. Industrial unemployment	(d) Due to fast industrial growth

Answer:
Wrong Pair : (4) Industrial unemployment – Due to fast industrial growth.

Question 2.

Schemes	Aims/Objectives
1. Employment Guarantee Scheme	(a) to provide productive employment to the rural population.
2. Swarna Jayanti Shahari Rozgar Yojana	(b) to provide gainful employment to rural unemployed and underemployed.
3. TRYSEM	(c) to train 2 lakh rural youth every year.
4. Startup India Initiative	(d) to impart strength and inspiration to the talented young generation.

Answer:
Wrong Pair: (2) Swarna Jayanti Shahari Rozgar Yojana – to provide gainful employment to rural unemployed and underemployed.

1G. Choose the correct pair:

Question 1.

Group – ‘A’	Group – ‘B’
1. Seasonal unemployment	(a) Computers
2. Disguised unemployment	(b) Breakdown of machinery
3. Structural unemployment	(c) Zero marginal productivity
4. Frictional unemployment	(d) Depression
5. Cyclical unemployment	(e) Slack season
6. Technological unemployment	(f) Infrastructural changes
7. EGS	(g) Maharashtra

Answer:
Correct Pair: (1) – (e), (2) – (c), (3) – (f), (4) – (b), (5) – (d), (6) – (a), (7) – (g).

2. Distinguish Between:

Question 1.
Unemployment and Underemployment.
Answer:

Unemployment	Underemployment
(i) It refers to a situation in which people are willing to work at the prevailing wage rate but do not get jobs.	(i) It is a situation in which employed people are contributing to production, less than their capacity.
(ii) It is a situation when the supply of labour force is more than its demand.	(ii) It is a situation where workers work below his ability as he is unable to find a suitable job.
(iii) Unemployed are those who do not have any work.	(iii) Underemployed work for less than 28 hours a week or CA working as a clerk.
(iv) In this situation, there is wastage of working capacity and a complete waste of manpower.	(iv) In this situation there is underutilization of working capacity.

Question 2.
Disguised Unemployment and Seasonal Unemployment.
Answer:

Disguised Unemployment	Seasonal Unemployment
(i) It is a situation where people appear to work but do not contribute anything to production.	(i) It is a situation in which people remain unemployed during the off-season.
(ii) It is found throughout the year.	(ii) It is found only in some months of the year.
(iii) It is usually found in the agricultural sector due to too much pressure of population on land.	(iii) It is found in the agricultural sector as well as in agro-based industries like sugar mills, rice mills, etc.
(iv) Marginal productivity of a worker is zero.	(iv) Marginal productivity of a worker is not zero.
(v) It is classified on the basis of productivity.	(v) It is classified on the basis of seasons.
(vi) It can be reduced by way of production control, rural industrialization, labour mobility, etc.	(vi) It can be reduced by providing better irrigational facilities, encouraging cottage industries, creating alternative job opportunities, etc.

Question 3.
Frictional Unemployment and Structural Unemployment.
Answer:

Frictional Unemployment	Structural Unemployment
(i) It takes place when due to the frictions in the industry, some workers are removed from jobs.	(i) It takes place due to the structural changes in the economic organizations.
(ii) It is the result of a shortage of raw materials, strikes, power failure, etc.	(ii) It is the result of a change in the production process, shifting the industry from one region to another, technological changes, etc.
(iii) It is temporary unemployment.	(iii) It may be long-term unemployment.
(iv) It is seen in all countries.	(iv) It is normally seen in underdeveloped countries.
(v) It can be removed by improvement in the supply of inputs, good labor-employer relations, etc.	(v) It can be removed by way of long-term planning, creation of alternative jobs, etc.

Question 4.
Technological Unemployment and Cyclical Unemployment.
Answer:

Technological Unemployment	Cyclical Unemployment
(i) It refers to unemployment due to the introduction of new techniques of production.	(i) It refers to unemployment due to a lack of effective demand for goods and services in the market.
(ii) It may be temporary or long-term in nature.	(ii) It is temporary in nature.
(iii) It is caused due to the introduction of new labour-saving techniques, lack of proper training, etc.	(iii) It is caused by fluctuations in business and trade cycles, a fall in effective demand, etc.
(iv) It is found more in developing countries.	(iv) It is found more in the developed countries.
(v) It can be removed by making alternative job arrangements, providing technical training, encouraging self-employment, etc.	(v) It can be removed by encouraging consumption, export activities, etc.

Question 5.
Rural Unemployment and Urban Unemployment.
Answer:

Rural Unemployment	Urban Unemployment
(i) Unemployment prevailing in the village is called rural unemployment.	(i) Unemployment prevailing in the cities and towns is called urban unemployment.
(ii) It is of two types: seasonal unemployment disguised unemployment.	(ii) It is also of two types: industrial unemployment educated unemployment.
(iii) Causes of rural unemployment are more pressure on land, rising population, seasonal nature of agriculture, etc.	(iii) Causes of urban unemployment are slow economic growth, lopsided development, immobility of labour, the spread of education, etc.
(iv) This problem is not so intense in India.	(iv) This problem is more intense in India.

Question 6.
Voluntary Unemployment and Involuntary Unemployment.
Answer:

Voluntary Unemployment	Involuntary Unemployment
(i) Voluntary unemployment arises when people are fit to work but not willing to work.	(i) Involuntary unemployment arises when people who are able and willing to work at the existing wage rate, do not find employment.
(ii) The idle rich belong to this category.	(ii) It is generally found among educated and skilled workers.
(iii) It is not considered a serious problem.	(iii) It gives rise to serious economic and social problems.
(iv) The Government cannot solve the problem of voluntarily unemployed people.	(iv) The Government can solve the problem of such people.

3. Answer the following:

Question 1.
Explain the concepts of unemployment.
Answer:
Unemployment is a situation in which a person between the age group of 15 to 59 years, who is willing and able to work at the prevailing wage but not getting any job. Hence it is a situation of scarcity of jobs, where the supply of labour is more than its demand.
Concepts of Unemployment:

• Involuntary unemployment: It refers to a situation when people are able and willing to work but there is no work for them due to excess of labour force in relation to demand labour it is also known as visible or open unemployment. Such unemployment is found in both rural and urban areas.
• Voluntary unemployment: This is not really unemployment, it is “idleness”. It is a type of unemployment where a person is fit to work but not willing to work. E.g. Rich people not willing to work or beggars who are not ready to work or educated people waiting for white-collared jobs.
• Underemployment: It is a situation where a person’s capacity to work is not fully utilized with respect to time, energy, or education. E.g: a CA working as a clerk, or a person who is ready to work full time gets a part-time job.
• Full employment: It is a situation where all the available resources in an economy are used to their optimum level.

Question 2.
What are the types of Rural unemployment?
Answer:
The unemployment situation found in village and rural areas is called rural unemployment. The main two types of rural unemployment are:
(i) Seasonal unemployment: In India, agriculture depends on the monsoon, therefore only one crop can be grown during a year. The rural agricultural labourers work mostly for 4 to 5 months during rains and rest of the year they are idle. Hence unemployment during the off-season is known as seasonal unemployment. Seasonal unemployment is also found in tourism, marriage bands, sugar factories, ice factory, fisheries, etc.

(ii) Disguised unemployment: It is also known as invisible unemployment. It is a situation where more people are working when less is required. E.g. on a piece of land when 6 workers work, the output produced is 20 quintals. If 2 workers are removed, then also the output produced is 20 quintals. This means 2 workers are not adding anything to the production. Hence these surplus workers are said to be disguisedly unemployed or in economic terms, the marginal productivity of these disguisedly unemployed labours is zero.

Question 3.
What are the types of Urban unemployment?
Answer:
Unemployment found in towns and cities is known as urban unemployment.
The two types of urban unemployment are:
(i) Educated unemployment: With the spread of education, the number of educated persons has increased. But when these educated persons do not find jobs, there is said to be educated unemployment. This type of unemployment is found among matriculates, undergraduates, graduates, and postgraduates. The casual approach to education; imbalance between job opportunities and the number of educated youth, Preference for white-collar jobs, lack of employable skills, lack of awareness about available educational opportunities are the main reasons for unemployment among educated youth in India.

(ii) Industrial unemployment: It refers to unemployment in the industrial sector. The unemployed workers may be skilled or unskilled. This is generally in a form of open unemployment. Slow industrial growth, the rapid growth of population, lack of training facilities, low adaptability to modern technology, inconvenient location of industries, low mobility of labour, etc. are the main reason for industrial unemployment. Industrial unemployment can be further classified into-

• Technological unemployment
• Frictional unemployment
• Cyclical unemployment
• Structural unemployment.

Question 4.
State any 4 Causes of Unemployment.
Answer:
Causes of Unemployment:

• The slow rate of economic development: Slow rate of economic development has resulted in the inability of the economy to give employment to the additional labour force. Therefore, unemployment is increasing.
• Excessive use of machinery: Industries are undergoing modernization and using more machines and less labour. This reduces employment opportunities. Also, in the agricultural sector, producers are increasingly substituting capital for labour.
• Migration of rural population: Agriculture being seasonal, in the off-season, there are no alternative jobs available. So they migrate to urban areas and the number of unemployed increases in urban areas.
• Expectation towards employment: Educated people have high expectations about the salary and they want ‘white-collar jobs which are not enough. They prefer to remain unemployed rather than accepting a lower salary. This also causes unemployment.

Question 5.
State the economic effects of unemployment.
Answer:
Economic effects of unemployment:

• Waste of human resources: Human resources are wasted due to unemployment in the country. These resources could have been used in the production activity of the economy.
• Difficult to implement welfare schemes: Due to corruption and malpractices, it is difficult to implement various welfare schemes introduced by the government from time to time.
• Poverty and Income inequality: Lack of employment leads to poverty and income inequality in the economy.
• Growth of informal sector: Due to unemployment, poverty increases in the economy which will attract the growth of informal sectors like smuggling, drug peddling, black marketing, etc.
• High dependency ratio: When unemployment increases in an economy, it will lead to an increase in dependency ratio.
• The unemployed group will become the burden on the employed group.

Question 6.
State the Social Effects of Unemployment.
Answer:
Social effects of unemployment:

• Social tensions: Due to unemployment, social tensions and unrest in the economy go on increasing.
• Loss of human dignity: Unemployment especially among the educated, creates an inferiority complex and leads to low dignity and self-esteem.
• Helplessness: Sometimes unemployed youth become so helpless that they try to run away from reality and some may commit suicide. Therefore, unemployment is socially undesirable.

Question 7.
State any 4 specific measures taken by the Government to generate employment in the country.
Answer:
Specific measures to generate employment are as follows:

• Jawahar Rozgar Yojana (JRY): It was announced by the Government on 1st April 1989 to general employment in 120 backward districts specifically rural areas of India. This program was later on renamed as Jawahar Gram Samrudhi Yojana (JGSY).
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): This scheme aims at providing at least 100 days of guaranteed wage employment in a year to at least one member of every rural household.
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana, 2014: It is a placement linked skill training programme run under the Ministry of Rural Development.
  • The main aim of this scheme is to reduce poverty and provide gainful and sustainable employment.
  • This scheme focused on rural youth from poor families under the age group of 15 – 35 years.
• Startup India Initiative: It was introduced to impart more strength and inspiration to the talented young generation of India to do something new for India and humanity.

4. State with reasons whether you agree or disagree with the following statements:

Question 1.
Problems of unemployment in India and America are the same.
OR
Problems of unemployment in developed and developing countries are the same.
Answer:
No, I do not agree with the statement.

• Problems of unemployment in India and America are not the same.
• India is a developing country whereas America is a developed one.
• India being an agricultural economy, in rural areas there is a problem of disguised and seasonal unemployment and in urban areas, there is underemployment, frictional, structural, and educated unemployment.
• All this is because of overpopulation.
• But America is a technically advanced country and being thinly populated, the problem of unemployment is not so very serious.
• More often cyclical unemployment is found there which is because of a lack of effective demand.
• Hence, the statement that the problems of unemployment in India and America are the same is not correct.

Question 2.
The high growth of the population is the only cause of rural unemployment.
Answer:
No, I do not agree with the statement.

• The high growth of the population is one of the causes of rural unemployment.
• Other causes are:
  • Seasonal nature of agriculture.
  • Lack of mobility.
  • Declining of handicrafts.
  • Under the development of villages.
  • Joint family system.
  • Law of inheritance.
  • Illiteracy among the people.

Hence, the high growth of the population is not the only cause of rural unemployment.

Question 3.
Disguised unemployment is a part of urban unemployment.
Answer:
No, I do not agree with the statement.

• Disguised unemployment is a special feature of rural areas.
• It exists when more workers are employed in a sector than what is actually required.
• They seem to be working but their contribution to the work is zero.
• This is found more in rural areas because of the high growth of the population and the lack of alternative job opportunities.
• In urban areas, we find educated unemployment or there may be frictional, structural, cyclical, or technological unemployment.
• Hence, disguised unemployment is a part of rural unemployment.

Question 4.
Educated unemployment is due to a defective education system.
Answer:
Yes, I agree with the statement.

• The Indian education system is defective.
• It stresses more on general education rather than job-oriented education.
• Educated people do not fit in any type of job unless they do some professional courses.
• Hence, a defective education system is one of the main causes of unemployment among educated people.

Question 5.
Frictional unemployment is temporary in nature.
Answer:
Yes, I agree with the statement.

• Frictional unemployment arises when there are problems like a breakdown of machinery, shortage of raw materials, power failure, etc. and some workers are removed from their jobs.
• All these are temporary problems and can be solved in a short period.
• Such problems do not cause a serious problem.
• Hence, it is right to say that frictional employment is temporary in nature.

Question 6.
Underemployment is found both in rural and urban areas.
Answer:
Yes, I agree with the statement.

• Underemployment arises when employed persons contribute less than their capacity.
• In rural areas, on the farms, labourers work for 2-3 hours a day and since alternative jobs are not available, they remain idle for the rest of the day.
• In urban areas, because of the shortage of employment, when qualified persons do not get jobs as per their qualifications, they accept either low-paid or part-time jobs.
• Hence, in both rural and urban areas underemployment is found, although it is more in rural areas.

5. Observe the following charts and answer the questions given below:

Question 1.

Question i.
Workers were sitting idle in a factory due to power failure for 3 hours.
Answer:
Frictional unemployment.

Question ii.
Ram had no work, due to the end of the Kharif crop season.
Answer:
Seasonal unemployment.

Question iii.
Due to the introduction of taxis and auto-rickshaws, Bhimaji’s horse-cart was not demanded by travellers.
Answer:
Structural unemployment.

Question 2.

Question i.
If Prakash is ready to work at the prevailing wage rate in the market, but he is unable to find the work, then what type of unemployment is it? Write the reason.
Answer:
Involuntary Unemployment.
It is due to the excess labour force with respect to demand for labour.

Question ii.
Vishal is an educated youth XYZ company is offering him a job, but he doesn’t want to work. What kind of unemployment is it? Write the reason.
Answer:
Voluntary Unemployment.
It is a kind of self unemployment. Here, the person is fit and eligible to work, but wants to remain unemployed.

Question iii.
Ajay has passed his degree college by first class and he is working as a factory assembly like a worker. Write the reason.
Answer:
Underemployment.
Mr. Ajay could have worked much better as per his qualification, but due to the non-availability of job opportunities, he is working as a factory assembly.

Question iv.
Write the meaning of full employment.
Answer:
Full employment is a situation in which all the available resources of the country are being used at their optimum and in the most efficient manner.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 6 Population in India Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 6 Population in India

1A. Choose the correct option:

Question 1.
Effects of population explosion
(a) Decreased pressure on agriculture
(b) Increased pressure on land
(c) Inflation
(d) Low national income
Options:
(1) a, b, c
(2) b, c, d
(3) a, b, d
(4) a, c
Answer:
(2) b, c, d

Question 2.
Social measures to check population explosion
(a) Spread of education
(b) improving the status of women
(c) raising the minimum age of marriage
(d) expansion of the industrial sector
Options:
(1) a, b, c
(2) b, c, d
(3) b, d
(4) c, d
Answer:
(1) a, b, c

Question 3.
Economic measures to check population explosion
(a) expansion of the industrial sector
(b) removal of poverty
(c) improving the status of women
(d) Disaster management
Options:
(1) a, b
(2) a, b, c
(3) b, c, d
(4) a, b, d
Answer:
(4) a, b, d

Question 4.
Population Policy of India
(a) Family planning programme
(b) Mid-day meal programme
(c) Family welfare programme
(d) National population policy
Options:
(1) a, d
(2) b, c
(3) a, c, d
(4) a, b, c
Answer:
(3) a, c, d

Question 5.
Features of National Population Policy, 2000
(a) Delay marriage age of girls
(b) Free and compulsory education up to age of 20
(c) Achieve a stable population by 2050
(d) Prevention and control of the communicable disease.
Options:
(1) a, b, c
(2) b. c, d
(3) a, d
(4) b, d
Answer:
(3) a, c, d

1B. Complete the correlation:

Question 1.
1st Transition stage : Low growth of population : : 2nd Transition stage : ____________
Answer:
High growth of population

Question 2.
____________ : Cause of high birth rate : : Use of Nutritious food : Cause of low death rate.
Answer:
Illiteracy

Question 3.
Family Planning Programme : 1979 : : National Population Policy : ____________
Answer:
2000

Question 4.
Economic measure to check population : Removal of poverty : : ____________ : Social measure to check population.
Answer:
Improving the status of women

Question 5.
Theory of Population Growth : ____________ : : Theory of Demographic Transition : Coale and Hoover.
Answer:
Thomas Robert Malthus

1C. Give economic terms:

Question 1.
Natural resources exceed population growth.
Answer:
Underpopulation

Question 2.
Population growth exceeds the availability of natural resources.
Answer:
Overpopulation

Question 3.
Programme introduced (renamed) to reduce the birth rate in 1979.
Answer:
Family Welfare Programme

Question 4.
The policy was introduced to reduce the birth rate in 2000.
Answer:
National Population Policy

Question 5.
The proportion of working people to the total population is high.
Answer:
Demographic dividend

Question 6.
Preference for male children.
Answer:
Son meta – preference.

1D. Arrange in proper order:

Question 1.
Growth of population in India
(a) Year of Great Divide
(b) Population explosion
(c) Marginal decline in population
(d) Increase in population
Options:
(1) a, b, c, d
(2) a, c, b, d
(3) c, a, d, b
(4) b, a, c, d
Answer:
(3) c, a, d, b

Question 2.
Stages of Demographic Transition
(a) Decline in birth rate and death rate
(b) Low growth of population
(c) Rapid fall in death rate
Options:
(1) a, b, c
(2) b, c, a
(3) c, a, b
Answer:
(2) b, c, a

Question 3.
Population Policy in India
(a) Family welfare programme
(b) National population policy
(c) Family planning programme
Options:
(1) a, b, c
(2) b, c, a
(3) c, a, b
Answer:
(3) c, a, b

1E. Find the odd word out:

Question 1.
Concepts related to population growth
Birth rate, Death rate, Survival rate, Interest rate.
Answer:
Interest rate

Question 2.
Causes of high birth rate
Illiteracy, Preference, for male child, Expansion of industrial sector, Joint family system.
Answer:
Expansion of industrial sector

1F. Complete the following statements:

Question 1.
Population statistics are compiled and published by the ____________
Answer:
Office of the Registrar General and Census Commissioner of India

Question 2.
On 11th July, 1987, world population crossed ____________
Answer:
500 crores

Question 3.
World Population day is observed every year on ____________
Answer:
11th July

Question 4.
The Census Commissioner of India designated the year 1921 as the ____________
Answer:
‘Year of Great Divide’

Question 5.
Birth rate is also called as ____________
Answer:
fertility rate

Question 6.
Death rate is also called as ____________
Answer:
mortality rate

Question 7.
Survival rate = ____________
Answer:
Birth rate – Death rate

Question 8.
Difference between birth rate and death rate is know as ____________
Answer:
survival rate

Question 9.
The number of death per 1000 of the living population during a year is called ____________
Answer:
death rate

Question 10.
Theory of demographic transition is given by ____________
Answer:
A. J. Coale and E. M. Hoover

Question 11.
The situation where the growth of population is faster than the growth of the economy is called ____________
Answer:
population explosion

Question 12.
In India marriage is considered as ____________
Answer:
social and religious obligations

Question 13.
To continue having children in hope of son is known as ____________
Answer:
son meta – preference

Question 14.
Under the situation of optimum population, there is a balance between ____________
Answer:
population growth and natural resources

Question 15.
Demographic dividend occurs when the proportion of ____________
Answer:
working people to total population is high.

1G. Choose the wrong pair:

Question 1.

Group ‘A’	Group ‘B’
(i) Malthusian Theory	(a) Thomas Robert Malthus
(ii) Kautilya	(b) Samajshashtra
(iii) World Population Day	(c) 11th July
(iv) 1921	(d) Year of Great Divide

Answer:
Wrong Pair: Kautilya – Samajshashtra

Question 2.

Group ‘A’	Group ‘B’
(i) Population Policy	(a) Family Welfare Programme
(ii) Effects of population explosion	(b) Increased pressure on land
(iii) Overpopulation	(c) Population growth < Natural Resources
(iv) Theory of Demographic Transition	(d) Coale and Hoover

Answer:
Wrong Pair: Overpopulation – Population growth < Natural Resources

1H. Choose the correct pair:

Question 1.

Group ‘A’	Group ‘B’
(1) Census	(a) Survival rate
(2) High birth rate	(b) Population per sq. km.
(3) Density of population	(c) Universal marriage
(4) Difference between birth rate and death rate	(d) Method of computing population

Options:
(1) 1-d, 2-c, 3-b, 4-a
(2) 1-b, 2-c, 3-d, 4-a
(3) 1-b, 2-a, 3-c, 4-d
(4) 1-c, 2-d, 3-a, 4-b
Answer:
(1) 1-d, 2-c, 3-b, 4-a

Question 2.

Group ‘A’	Group ‘B’
(1) 1921	(a) 121.02 crores
(2) 2011 Census	(b) The year of great divide
(3) Family Planning	(c) Mortality rate
(4) Death rate	(d) Planned parenthood

Options:
(1) 1-d, 2-c, 3-a, 4-b
(2) 1-b, 2-c, 3-d, 4-a
(3) 1-b, 2-a, 3-d, 4-c
(4) 1-c, 2-d, 3-a, 4-b
Answer:
(3) 1-b, 2-a, 3-d, 4-c

Question 3.

Group ‘A’	Group ‘B’
(1) Family Welfare Programme	(a) 2000
(2) National Population Policy	(b) 1952
(3) Infant Mortality Rate in 2011	(c) 1979
(4) Family Planning Programme	(d) 47 per 1000

Options:
(1) 1-d, 2-c, 3-a, 4-b
(2) 1-b, 2-c, 3-d, 4-a
(3) 1-b, 2-a, 3-c, 4-d
(4) 1-c, 2-a, 3-d, 4-b
Answer:
(4) 1-c, 2-a, 3-d, 4-b

2. Distinguish between:

Question 1.
Birth Rate and Death Rate.
Answer:

Birth Rate	Death Rate
(i) Birth rate refers to a number of births per 1000 of living population per year.	(i) Death rate refers to a number of deaths per 1000 of living population per year.
(ii) Since 1921, the birth rate is falling gradually.	(ii) Since 1921, the death rate is falling rapidly.
(iii) A high birth rate is caused by early marriage, lack of family planning, illiteracy, etc.	(iii) A high death rate is caused by lack of medical facilities, poverty, malnutrition, etc.
(iv) Birth rate can be controlled by late marriages, family planning, etc.	(iv) Death rate can be controlled by better medical facilities, social welfare programmes, etc.
(v) According to the 2011 census, the birth rate in India is 20.97.	(v) According to the 2011 census, the death rate in India is 7.48.

3. Answer the following:

Question 1.
What economic measures do you suggest to check population growth?
Answer:
To control the size of the population, economic measures can ensure a permanent solution.
These measures are:

• Expansion of industrial sector to shift the disguisedly unemployed people in rural areas to industries.
• Creation of employment opportunities in rural areas by starting labor-intensive industries.
• Equitable distribution of national income and removal of poverty, as the size of the family, is linked with poverty.

Question 2.
What social measures do you suggest to check population growth?
Answer:
The population problem is also a social problem and is related to illiteracy, superstitions, orthodoxy, pitiable condition of women, etc.
The following social measures must be undertaken:

• Education: Improvement in education changes the attitude of people towards family, marriage, and the number of children. Mostly educated people delay their marriage and prefer to have small families.
• Improvement in the conditions of women: Discrimination against women in social and economic life should be removed by the government.
• Raising the age of marriage: The marriage age of boys and girls should be raised and offenders should be punished by law.

Question 3.
Explain about Population Policy of India.
Answer:
Population policy was implemented through the following programmes:

• Family Planning Programme: Family planning refers to planned parenthood. It means limiting the size of the family by choice and not by chance. The family planning programme was introduced by the Government of India in 1952.
• Family Welfare Programme: ‘Family Planning Programme’ was renamed as ‘Family Welfare Programme’ in 1979. It tried to implement family planning services with maternal, child health, and nutrition.
• National Population Policy, 2000: It was introduced in 2000 to control population and improve its quality by giving free and compulsory education up to the age of 14 years, reduce infant and maternal mortality rate, universal immunization of children, delayed marriage for girls, etc.

Question 4.
Explain the Theory of Demographic Transition.
Answer:
The theory of demographic transition (birth rate and death rate related changes) given by Coale and Hoover explains that every country passes through three stages of demographic transition. It explains the changes taking place from high to low birth and death rates.

• First Stage: During the first stage, the country is at a low level of economic development. Agriculture is said to be the main occupation, people are illiterate and are ruled by old customs and beliefs. Hence in this stage, the country experiences a high birth rate and high death rate, and the actual growth of the population is low.
• Second Stage: Due to the improvement in economic development, the death rate starts falling rapidly, but the birth rate remains almost stable. This leads to widening the difference between the two, resulting in a very fast rise in the growth of population. Developing countries including India experiences this stage.
• Third Stage: As economic development continues, the structure of the economy changes, people shift from rural to urban areas, literacy rate improves, and in this stage, both birth rate and death rate fall, and there is low but stable population growth. Developed countries experience this stage.

Question 5.
Explain the concepts related to population growth.
Answer:
The concepts related to population growth are birth rate, death rate, and survival rate.

• Birth rate: The number of births occurring per 1000 of the living population during a year is called as Birth rate. It is also called as “fertility rate”.
• Death rate: The number of deaths occurring per 1000 of the living population during a year is called the Death rate. It is also called as “mortality rate”.
• Survival rate: Survival rate shows the actual rate of population growth. It is calculated by deducting the Death rate from the Birth rate i.e. Survival rate = Birth rate – Death rate.

4. State with reasons whether you agree or disagree with the following statements:

Question 1.
The year 1921 is known as the “Year of Great Divide”.
Answer:
Yes, I do agree with the statement.

• Before 1921, both the birth rate and death rate were high. In fact, in 1921, the death rate was little more than the birth rate because in India 8 million people died in Bengal due to the epidemic – plague.
• But after 1921, although both birth rate and death rate started declining, the birth rate declined slowly while the death rate started declining rapidly due to medical facilities, control over natural calamities, etc.
• Hence, in the context of population growth, the year 1921 is a dividing line having negative growth of population. Therefore, the Census Commission of India has called this year the ‘Year of Great Divide”.

Question 2.
The family planning programme has been very successful in India.
Answer:
No, I do not agree with the statement.

• People in India hesitate to follow family planning because of illiteracy, ignorance, and superstitions.
• Also, poverty among the people does not allow them to buy birth control devices.
• Some religion does not believe in family planning.
• So, although this programme is successful among the educated people, it is not so successful among the poor.

Question 3.
India is in the second stage of demographic transition.
Answer:
Yes, I do agree with the statement.

• In the second stage of demographic transition, the country experiences a high birth rate and a declining death rate.
• India is experiencing the same where the birth rate is as high as 20.97 and the death rate as 7.48 in 2011 is declining so India is still in the developing stage.
• So, India is in the second stage of demographic transition.

Question 4.
India is not going through a population explosion.
Answer:
No, I do not agree with the statement.

• India is going through a population explosion because, in the post-independence period, the death rate has been falling rapidly while the birth rate is falling slowly. So survival rate is high.
• India’s population is growing at an alarming rate.
• India is the second most populated country in the world.
• In 1951, India’s population was 36.1 crores which have increased more than 3 times in 2011 to 121.02 crores. That is why the post-1951 period is described as a period of population explosion.

Question 5.
The birth rate in India is controlled.
Answer:
No, I do not agree with the statement.

• According to the 2011 census birth rate in India is 20.9 which is very high as compared to other developed countries,
• Main factors responsible for such a high birth rate are :
  • Because of poverty, children at a very young age start helping their parents in earning. Hence, more children are welcomed.
  • Religious and social attitudes in India are such that large families are preferred.
  • Illiteracy, ignorance, and the non-availability of birth control devices are also responsible for the high birth rate in India.
  • There is a lack of awareness of the need for family planning.
• Thus, the birth rate in India is not controlled but is very high.

5. Answer in detail:

Question 1.
Explain the measure to check population explosion.
Answer:
Population explosion is one of the big obstacles to development, thus attempts have to be made to control it. Measures to control population explosion can be classified into the following three groups:

• Economic Measures
• Social Measures
• Population Policy of India.

(i) Economic Measures:

• Expansion of industrial sector to shift the disguisedly unemployed people in rural areas to industries.
• Creation of employment opportunities in rural areas by starting labor-intensive industries.
• Equitable distribution of national income and removal of poverty, as the size of family, is linked with poverty.

(ii) Social Measures: Population problem is also a social problem and related to illiteracy, superstitions, orthodoxy, pitiable condition of women, etc.
The following social measures must be undertaken.

• (a) Education: Improvement in education changes the attitude of people towards family, marriage, and the number of children. Mostly educated people delay their marriage and prefer to have small families.
• (b) Improvement in the conditions of women: Discrimination against women in social and economic life should be removed by the government.
• (c) Raising the age of marriage: The marriage age of boys and girls should be raised and offenders should be punished by law.

(iii) Population Policy of India:

• Family Planning Programme: Family planning refers to planned parenthood. It means limiting the size of the family by choice and not by chance. The family planning programme was introduced by the Government of India in 1952.
• Family Welfare Programme: This programme tries to integrate various families. This programme deals with maternal, child health, and nutrition issues of the society.
• National Population Policy, 2000: It was introduced to control population and to improve the quality of population, through various measures like free education, reducing infant mortality and maternal mortality rate, etc.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 5 Rural Development in India Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 5 Rural Development in India

1A. Choose the correct option and rewrite the sentence:

Question 1.
Short term loans not exceeding two years are taken ___________
(a) to buy tractor
(b) to make improvements on land
(c) for meeting expenses on religious or social ceremonies
(d) for digging up of canals
Answer:
(c) for meeting expenses on religious or social ceremonies

Question 2.
Non-institutional sources of agricultural credit are related to ___________
(a) the loan provided by landlords, money-lenders, traders, etc.
(b) NABARD, which is an apex institution in rural credit structure.
(c) Rural Co-operative credit institutions.
(d) Commercial banks establish branches to provide credit.
Answer:
(a) the loan provided by landlords, money-lenders, traders, etc.

Question 3.
The service sector termed as ‘tertiary sector’ ___________
(a) has been subdivided into agriculture and allied activities.
(b) includes transport, restaurants, tourism, etc.
(c) is concerned with the processing of raw materials.
(d) consists of the plantation, forestry, fisheries, dairy, etc.
Answer:
(b) includes transport, restaurants, tourism, etc.

Question 4.
Rural development leads to an increase in rural incomes and standard of living.
(a) It is related to only agricultural development.
(b) Indian economy is predominantly an urban economy.
(c) Credit has to be used for personal consumption only.
(d) This helps in the eradication of poverty.
Answer:
(d) This helps in the eradication of poverty.

Question 5.
Agricultural policies have been reviewed from time to time.
(a) so as there are adequate savings to finance farming.
(b) as India’s economic growth depends upon agricultural development only.
(c) so as to provide adequate and timely finance to the rural sector.
(d) so as to restrict money lenders from charging a high rates of interest.
Answer:
(c) so as to provide adequate and timely finance to the rural sector.

1B. Complete the correlation:

Question 1.
Industrial Sector : Cottage Industries : : Service Sector : ___________
Answer:
Transport

Question 2.
___________ : Allied Activities : : Industrial Sector : Rural Industries.
Answer:
Agricultural Sector

Question 3.
Purchase of Tractor : ___________ : : Loans for Marriages : Unproductive Loans.
Answer:
Productive Loan

Question 4.
Institutional Sources : Regional Rural Banks : : ___________ : Money Lenders.
Answer:
Non-institutional Sources

Question 5.
Short term Credit Co-operatives : State Co-operative Banks : : Long term Credit Co-operatives : ___________
Answer:
State Co-operative Agriculture and Rural Development Banks.

1C. Suggest the economic terms for the given statements:

Question 1.
The strategy is designed to improve the economic and social life of a specific group of people.
Answer:
Rural Development

Question 2.
Division of Agricultural sector.
Answer:
tertiary sector

Question 3.
An industrial activity concerned with the processing of raw materials.
Answer:
final consumers

Question 4.
Sector concerned with services to business and the final consumer.
Answer:
traders, professionals and technicians

Question 5.
Loan not exceeding two years.
Answer:
economic growth

Question 6.
Loan up to a period of five years.
Answer:
purchase of fertilizers and HYV seeds

Question 7.
Loan for a period of more than five years.
Answer:
buying cattle or agricultural equipment

Question 8.
Justified loan related to agricultural production.
Answer:
Productive loan

Question 9.
A loan used for personal consumption.
Answer:
Unproductive loan

Question 10.
A banking institution to provide finance for agriculture and rural development.
Answer:
Government of India

1D. Find the odd word out.

Question 1.
Agricultural Sector – Plantation, Forestry, Fisheries, Restaurant
Answer:
Restaurant

Question 2.
Service Sector – Computer Service, Horticulture, Tourism, Restaurant
Answer:
Horticulture

Question 3.
Terms related to Rural Development in India – Public health, Literacy, Suppression of women power, Land reforms.
Answer:
Suppression of women’s power.

1E. Complete the following statements:

Question 1.
A strategy designed to improve the economic and social life of a specific group of people is called ___________
Answer:
Rural Development

Question 2.
The service sector is also termed as ___________
Answer:
Agriculture and Allied activities

Question 3.
The service sector involves services to business as well as ___________
Answer:
Industrial sector

Question 4.
The service sector is further classified into ___________
Answer:
Service sector

Question 5.
Appropriate strategies for rural development will lead to ___________
Answer:
Short term credit

Question 6.
Short term credit is required for ___________
Answer:
Medium-term credit

Question 7.
Medium-term credit is taken for ___________
Answer:
Long term credit

Question 8.
Purchase of tractor, land, seeds, etc are the examples of ___________
Answer:
Productive loan

Question 9.
Loan taken for expenditure on marriage or religious ceremony is called as ___________
Answer:
Unproductive loan

Question 10.
NABARD today is fully owned by ___________
Answer:
NABARD

1F. Choose the wrong pair:

Question 1.

Strategies for Rural Development	Effect
1. Public health and Sanitation	(a) Improvement in the quality of life
2. Empowerment of women	(b) Reduce gender disparity
3. Enforcement of law and order	(c) Eradication of poverty

Answer:
Wrong Pair: Enforcement of law and order – Eradication of poverty

Question 2.

Plans for Rural Development	Related Factors
1. Land reforms	(a) Protection of tenancy rights
2. Infrastructure development	(b) HYV seeds
3. Availability of credit	(c) Financial institutions

Answer:
Wrong Pair: Infrastructure development – HYV seeds

Question 3.

Institutional Sources of Agricultural Credit	Provision of Finance
1. NABARD	(a) For Agricultural and Rural Development
2. Long-term credit Co-operatives	(b) Operate at Village and State level
3. RRB’s	(c) Cater to the needs of urban poor

Answer:
Wrong Pair: RRB’s – Cater to the needs of urban poor

Question 4.

Abbreviations	Full Forms
1. PACS	(a) Primary Agricultural Credit Society
2. DCCB	(b) Development Central Co-operative Banks
3. SCB	(c) State Co-operative Banks

Answer:
Wrong Pair: DCCB – Development Central Co-operative Banks

2. Identify and explain the concepts from the given illustrations:

Question 1.
Govind bought a bullock by taking a loan for a period of 5 years.
Answer:
Medium Term Loan.
The medium-term loan is taken for a period of 5 years and it is generally taken to buy cattle or agricultural equipment or digging up of canals.

Question 2.
Surekha established a handloom industry to cater to the needs of the rural poor in the village.
Answer:
Cottage Industry.
The cottage industry is a manufacturing activity carried in the house of an individual. It is a small-scale industry with a minimum amount of investment, making job opportunities for the rural people in the village.

Question 3.
Gulabrao took money from a landlord for the marriage of his son.
Answer:
Unproductive Loan.
The unproductive loan is taken for personal consumption purposes. It is not related to productive activities like loans taken for marriages or to perform religious ceremonies.

Question 4.
There was a considerable socio-economic change in ‘Jamdul’ village after the generation of electricity.
Answer:
Infrastructure Development.
Infrastructure development is a result of rural development programmes. It leads to further progress of an economy.

Question 5.
Nand Kumar started a cyber cafe near the bus stand to provide computer services.
Answer:
Service Sector.
The service sector involves the provision of services to businesses as well as services to final consumers like accounting
services, mechanical services, plumbing services, computer services, etc.

3. Assertion and Reasoning questions:

Question 1.
Assertion (A): Money lending has been a widely prevalent profession in villages.
Reasoning (R): Commercial Banks provide rural credit by establishing their branches in rural areas. Options:
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Question 2.
Assertion (A): Protection of Tenancy rights leads to a reduction in rural inequality.
Reasoning (R): Rural development ensures effective implementation of land reforms.
Options:
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 3.
Assertion (A): Short-term loans are not exceeding two years.
Reasoning (R): They are generally required for digging up canals.
Options:
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(iv) Both (A) and (R) are true but (R) is not the correct explanation of (A).

Question 4.
Assertion (A): Literacy is a powerful instrument of socio-economic change.
Reasoning (R): Unproductive credit is economically justified.
Options:
(i) (A) is true, but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Answer:
(i) (A) is true but (R) is False.

4. Distinguish between:

Question 1.
Short Term Credit and Medium Term Credit.
Answer:

Short Term Credit	Medium-Term Credit
(i) It refers to a loan not exceeding 2 years.	(i) It refers to a loan for a period of up to 5 years.
(ii) It is taken to fulfill short-term requirements like the purchase of fertilizers, buying of HYV seeds, for meeting expenses of religious or social ceremonies, etc.	(ii) It is taken to make improvements on the land, buying cattle, or agricultural equipment, digging of canals, etc.

Question 2.
Medium-Term Credit and Long Term Credit.
Answer:

Medium-Term Credit	Long Term Credit
(i) It refers to a loan for a period of up to 5 years.	(i) It is taken for a period of more than 5 years.
(ii) It is taken to make improvements on the land, buying cattle, or agricultural equipment, digging of canals, etc.	(ii) It is generally taken to buy tractors, making permanent improvements on the land, etc.

Question 3
Short Term Credit and Long Term Credit.
Answer:

Short Term Credit	Long Term Credit
(i) It refers to a loan not exceeding 2 years.	(i) It is taken for a period of more than 5 years.
(ii) It is taken to fulfill short-term requirements like the purchase of fertilizers, buying of HYV seeds, for meeting expenses of religious or social ceremonies, etc.	(ii) It is generally taken to buy tractors, making permanent improvements on the land, etc.

Question 4.
Productive Loan and Unproductive Loan.
Answer:

Productive Loan	Unproductive Loan
(i) Loan which is taken for agricultural production purposes is called a productive loan.	(i) Loan which is taken for unproductive purposes is called an unproductive loan.
(ii) Eg. purchase of tractor, land or seeds or agricultural equipment, etc.	(ii) Eg. expenditure on marriages or religious ceremonies.
(iii) It is an investment. It increases farmers’ income in the future.	(iii) It is an expenditure. It increases the debt burden of the farmers.

Question 5.
Non-institutional Sources of Agricultural Credit and Institutional Sources of Agricultural Credit.
Answer:

Non-institutional Sources of Agricultural Credit	Institutional Sources of Agricultural Credit
(i) It includes money lenders, traders, landlords, commission agents, friends, and relatives, etc.	(i) It includes commercial banks, Regional Rural Banks (RRBs), Rural Co-operative Credit Institutions, etc.
(ii) It is easy to obtain loans from non-institutional sources. The procedure is very simple and less time-consuming.	(ii) There are many formalities to obtain loans from institutional sources. The procedure is complicated and time-consuming.
(iii) In this case, a very high (exorbitant) rate of interest is charged.	(iii) In this case, the rate of interest is low.
(iv) There is no restriction on the use of loans taken from non-institutional sources.	(iv) The loan provided by institutional sources is restricted to use for productive activities only.

5. Answer the following questions:

Question 1.
Explain Rural occupational structure.
Answer:
Rural development is necessary to improve the economic and social life of the rural people.
The rural occupational structure can be classified as follows:

• Agricultural sector
• Industrial sector
• Service sector

(a) Agricultural sector: The rural population in India is mainly engaged in the agricultural sector. It is sub-divided as agriculture and allied activities. Agriculture consists of small marginal and large farmers. Allied activities include plantation, poultry farming, fisheries, forestry, dairy, horticulture, mining, etc.

(b) Industrial sector: It includes economic activities related to the processing of raw materials and the manufacture of goods. Occupations related to construction work, electricity, banking, insurance, trade, finance, education, etc., also fall under the Industrial sector. It is further classified as a small-scale industry, cottage industry, and rural industry.

(c) Service sector: It is also called the tertiary sector. It includes services like accounting services, mechanic or plumbing services, banking and insurance, computer service, etc. It is further classified into traders, transport operators, professionals, and technical.

Question 2.
Write a short note on NABARD.
Answer:
NABARD:

• NABARD is the Apex banking institution. National Bank for Agricultural and Rural Development was established on 12th July 1982, with a paid-up capital of ₹ 100 crores. 50% contribution was paid by the government and 50% by RBI.
• NABARD plays an energetic role in strengthening and re-organizing the credit structure in the country.
• NABARD provides credit to agriculture, small-scale industries, cottage and village industries, handicrafts, and other allied activities.
• The money required by the primary agricultural credit societies is provided by NABARD. It reduces regional imbalances.
• Today, NABARD is fully owned by the Government of India. NABARD is connected to district and state co-operative banks and RRB’s (Regional Rural Banks) for rural development.

Question 3.
Explain the term Micro Finance Institutions (MFIs).
Answer:
Micro Finance Institutions (MFIs):

• They offer rural credit on concessional interest rates.
• The beneficiaries of this scheme are the marginal farmers, landless labourers, artisans, and craftsmen in the rural areas.
• However, small farmers are unable to access rural credit.
• It is due to its inflexible procedure and high transaction cost.
• Thus, NGOs (Non- government Organisations) help the rural poor.

Question 4.
Explain Rural Co-operative Credit Institutions.
Answer:
Agricultural credit is an important prerequisite for agricultural growth.
Classification of Rural Co-operative Credit Institutions are as follows:

The rural co-operative credit institutions are divided into short-term credit co-operatives and long-term credit co-operatives.

(i) Short-term credit Co-operatives provide short-term rural credit. They are based on a three-tier structure.
Primary Agricultural Credit Societies operate at the village level, DCCB at the district level, and SCB at the state level.

(ii) Long-term credit Co-operatives meet the long-term requirements of the farmers. They are organized at two levels. Primary Co-operative Agriculture and Rural Development Banks operate at the village level as an independent unit. State Co-operative Agriculture and Rural Development Banks operate at the state level through their branches in different villages. They provide credit to the rural and agricultural sectors for their development.

Question 5.
Explain Non-institutional Sources of Credit.
Answer:
Non-Institutional Sources of Credit:
Non-institutional sources of credit play a prominent role in supplying rural credit.
The important sources of non-institutional credit are as follows:
(i) Moneylenders: It is easy to obtain loans from money lenders as the lenders and borrowers are known to each other. Easy access, simple procedure, and no restriction on the use of land attract farmers towards this loan. However, money lenders mortgage the land and charge high rates of interest on credit. It may result in the indebtedness of farmers.

(ii) Other Private Sources: It includes traders, landlords, commission agents, relatives, and friends, etc. At present, the share of non-institutional finance is declining.

Question 6.
Explain the classification of agricultural credit on the basis of the time period.
Answer:
On the basis of tenure (time period), agricultural credit is classified as follows:

• Short Term credit
• Medium Term credit
• Long Term credit

(i) Short Term Credit: It is required for consumption and to carry out farming and other activities. It is for a period not exceeding 2 years. It is taken to meet expenses on purchasing fertilizer, fodder, HYV seeds as well as to meet religious expenses or expenses of social ceremonies. These loans are normally repaid after the harvest period.

(ii) Medium Term Credit: The period for these loans is up to 5 years. It is mainly needed to purchase cattle, equipment, to make improvements on the land, to dig up canals, etc.

(iii) Long Term Credit: When farmers borrow a loan for a period of more than 5 years, it is called a long-term loan. It is mainly used to buy additional land, irrigation, making permanent improvements on the land, etc.

Question 7.
Explain the classification of agricultural credit on the basis of purpose.
Answer:
Agricultural credit is an important prerequisite for agricultural growth.
On the basis of purpose there are two types of agricultural credit which is as follows:

• Productive loan
• Unproductive loan.

(i) Productive loans: Productive loans are those which are related to agricultural equipment. Productive loans help to increase farmers’ income in the future.

(ii) Unproductive loans: Unproductive loans are used for personal consumption.
e.g. loans are taken for religious and social celebrations, birth and death ceremonies, expenditure on marriages, etc.
Unproductive loans increase the debt burden of the farmers.

6. State with reasons whether you agree or disagree with the following statements:

Question 1.
Unproductive loans are economically justified.
Answer:
No, I do not agree with the statement.

• Productive loans are economically justified as they are used for production purposes.
• Unproductive loans are used for personal consumption and are not related to productive activity.
• Eg. loans for expenditure on marriages or religious ceremonies.
• Thus, unproductive loans are not economically justified.

Question 2.
RRBs are set up as rural-oriented commercial banks with a low-cost profile of co-operatives.
Answer:
Yes, I do agree with the statement.

• RRBs cater to the needs of the rural poor.
• RRBs work with the professional decision and modern outlook of commercial banks.
• They are specialized banks established under RRB Act, 1976.
• Thus, we can say RRBs are rural-oriented commercial banks.

Question 3.
The interest charged by the money lenders is usually very low.
Answer:
No, I do not agree with the statement.

• Moneylenders are the private lenders of credit.
• They fall under the non-institutional sources of agricultural credit.
• They provide loans to farmers against land or other assets as collateral security.
• Thus, they charge a high rate of interest and mortgage the property of the cultivators.

Question 4.
Long Term Credit is for a period of up to 5 years.
Answer:
No, I do not agree with the statement.

• Long Term loans are generally taken by the farmers to buy farming equipment, tractor, additional land, to make permanent improvements on the land, or to pay old debts, etc.
• It is generally bigger in amount, hence, it is taken for a longer period of time for more than 5 years.
• A longer period makes repayment easier for the borrowers.
• Thus, it is taken for more than 5 years period.

7. Answer in detail:

Question 1.
Write the significance of Rural Development in India.
Answer:
The significance of Rural Development in India are as follows:

• Public Health and Sanitation: Rural development helps to improve sanitation and hygiene. It improves the quality of life.
• Literacy Rate: Rural development helps to increase the literacy rate. It helps to make provisions for educational facilities.
• Empowerment of Women: Rural development helps to reduce gender disparity. It also encourages women’s participation in community development programs.
• Enforcement of Law and Order: Rural development helps to safeguard the rights of the rural people.
• Land Reforms: Rural development results in effective implementation of land reforms like regulation
  of rent, protection of tenancy rights, etc. It reduces rural inequality.
• Infrastructural Development: Infrastructure refers to all those services and facilities which are necessary for economic growth. Rural development leads to infrastructural development, e.g. power generation, transportation, irrigation, banking, etc.
• Availability of Credit: Rural development also leads to an increase in financial institutions like credit societies, RRB’s, Cooperative banks, etc. The provision of credit helps the farmers to improve their standard of living.
• Eradication of Poverty: Due to rural development, there is an increase in rural incomes. It results in the eradication of poverty. In short, rural development is necessary for the overall development of the rural sector and to improve the quality of life.

Question 2.
Explain in detail the types of Agricultural Credit.
Answer:

On the basis of tenure (time period), agricultural credit is classified as follows:

• Short Term credit
• Medium Term credit
• Long Term credit

(i) Short Term Credit: It is required for consumption and to carry out farming and other activities. It is for a period not exceeding 2 years. It is taken to meet expenses on purchasing fertilizer, fodder, HYV seeds as well as to meet religious expenses or expenses of social ceremonies. These loans are normally repaid after the harvest period.

(ii) Medium Term Credit: The period for these loans is up to 5 years. It is mainly needed to purchase cattle, equipment, to make improvements on the land, to dig up canals, etc.

(iii) Long Term Credit: When farmers borrow a loan for a period of more than 5 years, it is called a long-term loan. It is mainly used to buy additional land, irrigation, making permanent improvements on the land, etc.

Agricultural credit is an important prerequisite for agricultural growth.
On the basis of purpose there are two types of agricultural credit which is as follows:

• Productive loan
• Unproductive loan.

(i) Productive loans: Productive loans are those which are related to agricultural equipment. Productive loans help to increase farmers’ income in the future.

(ii) Unproductive loans: Unproductive loans are used for personal consumption.
e.g. loans taken for religious and social celebrations, birth and death ceremonies, expenditure on marriages, etc.
Unproductive loans increase the debt burden of the farmers.

Question 3.
Explain the institutional sources of Agricultural Credit in India.
Answer:
The main aim of institutional sources of agricultural credit is to provide timely and adequate credit to farmers for increasing their agricultural productions.

Institutional sources of agricultural credit in India are as follows:
(i) National Bank for Agriculture and Rural Development (NABARD): It is at the top of banking institutions providing finance for agriculture and rural development, promotion of agriculture, small-scale industries, cottage, and village industries, handicrafts, etc. NABARD today is totally owned by the Government of India.

(ii) Rural Co-operative Credit Institutions:
It is divided into:

• Short-term credit co-operatives: This co-operative works through its three-tier structure i.e. PACS, DCCB, and SCB.
• Long-term credit co-operatives: These co-operatives look after the long-term credit requirements of the farmers.

It works through two banks i.e. Primary Co-operative Agriculture and Rural Development Banks and State Co-operative Agriculture and Rural Development Banks.

Primary Co-operative Agriculture and Rural Development Banks work at the village level as an independent unit while State Co-operative Agriculture and Rural Development Banks work at the State level through its branches in villages.

(iii) Commercial Banks (CBs): They provide rural credit by opening their branches in rural areas.

(iv) Regional Rural Banks (RRBs): Such banks are established under RRB Act, 1976. They are rural-oriented with a low-cost profile of co-operatives. They work with professional discipline and the modern outlook of Commercial banks.

(v) Micro Finance Institutions (MFIs): These are the institutions providing financial services to poor people or new businesses that cannot use traditional banking services. Such institutions are generally run by NGOs.

8. Read the following passage carefully and answer the questions given below:

Agriculture is the backbone of the Indian economy to bring about an increase in agricultural production, various programmes have been introduced through economic planning; like the expansion of irrigation facilities, infrastructural development, improving health & nutrition of the rural masses, increasing rural employment, etc.

Traditional agriculture relies heavily on indigenous inputs. Such as the use of organic manures, seeds, simple ploughs, bullocks & primitive agricultural tools.

Modern Technology in agriculture consists of Chemical fertilizers, pesticides, improved varieties of seeds including hybrid seeds, extensive irrigation, use of electricity, agricultural machinery, etc.

Modern technology has increased agricultural mechanization. As a result, industries supplying modern farm inputs have grown at a rapid rate. It has increased the demand for agricultural credit. It has improved productivity. So farmers have become market-oriented.

But, the effects of modern technology prevail only in certain selected areas & the rest of the country is not yet suitable for modern technology. Therefore, low-cost technology has to be introduced for overall rural development.

Question 1.
Highlight the programmes introduced to increase agricultural production.
Answer:
Through economic planning, various programmes have been introduced like the expansion of irrigation facilities, infrastructural development, improving the health and nutrition of the rural masses, increasing rural employment, etc.

Question 2.
What is the difference between traditional and modern technology?
Answer:
Traditional agriculture mainly depends upon indigenous inputs such as the use of organic manures, seeds, simple plough – bullocks, and primitive agricultural tools.

Modern technology in agriculture consists of chemical fertilizers, pesticides, improved varieties of seeds, including hybrid seeds, extensive irrigation, use of electric power, agricultural machinery, etc.

Question 3.
Why did farmers become market-oriented?
Answer:
Modern technology has increased agricultural mechanization. As a result, industries supplying modern farm inputs have grown at a rapid rate. It has increased the demand for agricultural credit. It has improved productivity. Hence, farmers became market-oriented.

Question 4.
Why is it necessary to introduce low-cost technology?
Answer:
The effects of modern technology prevail only in certain selected areas and the rest of the country is not yet suitable for modern technology. Therefore, low-cost technology has to be introduced for overall rural development.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 4 The Economy of Maharashtra Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 4 The Economy of Maharashtra

1A. Choose the correct option:

Question 1.
Revenue Divisions of Maharashtra
(a) Mumbai, Pune, Nasik, Palghar.
(b) Mumbai, Pune, Nasik, Aurangabad.
(c) Mumbai, Nasik, Amravati, Nagpur.
(d) Mumbai, Amravati, Nagpur, Nanded.
Options:
(1) a and d
(2) b and c
(3) a, b and d
(4) c, d, and b
Answer:
(2) b and c

Question 2.
Feature of Maharashtra Economy
(a) 2nd largest state in the country
(b) Most urbanized State.
(c) Unskilled manpower
(d) Most favoured destination for tourism
Options:
(1) c and d
(2) b, c, d
(3) a, b and d
(4) a, c and d
Answer:
(3) a, b and d

Question 3.
Problems in the economic development of Maharashtra
(a) Agricultural indebtedness.
(b) Abundant capital and marketing facilities.
(c) Abundant infrastructure facilities
(d) Regional imbalance
Options:
(1) a and d
(2) a, b and c
(3) b, c, and d
(4) a and c
Answer:
(1) a and d

Question 4.
Feature of industry in Maharashtra.
(a) Not potential to absorb excess labour
(b) Industrially advanced state.
(c) First choice of domestic and foreign investors
(d) Generates higher income and higher productivity.
Options:
(1) a and b
(2) b and c
(3) a, b, c
(4) b, c, and d
Answer:
(4) b, c, and d

Question 5.
Measures by Government for industrial development
(a) Creation of specialized Economic zone
(b) Implementation of MSICDP
(c) Discouraging Single Window Cell
(d) Introduction of MAITRI
Options:
(1) b and c
(2) a, b and c
(3) b, c, and d
(4) a, b and d
Answer:
(4) a, b and d

Question 6.
Service Sector
(a) Provides service to the agricultural sector and farmers.
(b) Largest employment generating sector
(c) Consists of insurance, retail banking, education, etc.
(d) Provides service to the business sector and final consumers.
Options:
(1) b, c, and d
(2) a, c and d
(3) a and d
(4) c and d
Answer:
(1) b, c, and d

1B. Complete the correlation:

Question 1.
Sarva Shiksha Abhiyan : Free and compulsory education : : Sakshar Bharat Abhiyan : ___________
Answer:
Each one Teach one or Adult literacy

Question 2.
Kolhapur : Regional films : : Mumbai : ___________
Answer:
Bollywood

Question 3.
NRHM : Health determinants : : NUHM : ___________
Answer:
Sanitation and hygiene

Question 4.
Primary Tier : Primary Health Centres and Community Health Centres : : Secondary Tier : ___________
Answer:
sub-district hospitals and district hospital

Question 5.
Agricultural Sector : Agricultural Indebtedness : : Industrial Sector : ___________
Answer:
Regional Imbalance

Question 6.
Economic infrastructure : Communication : : ___________ : Education.
Answer:
Social Infrastructure

Question 7.
___________ : Sarva Shiksha Abhiyan : : Higher Education : Rashtriya Uctchatar Shiksha Abhiyan.
Answer:
Primary Education

Question 8.
‘Each one Teach one’ : ___________ : : Free of cost S.T. Bus service : Girls Education.
Answer:
Adult literacy

Question 9.
Tribal Education : Residential Ashram Schools : Inclusive Education : ___________
Answer:
Differently Abled Children

Question 10.
Primary Tier : Community Health Centres : : ___________ : Super Speciality Hospital.
Answer:
Tertiary Tier

1C. Suggest the economic terms for the given statements:

Question 1.
The backbone of the socio-economic development of any country.
Answer:
Education

Question 2.
Free and compulsory education to 6-14 years children.
Answer:
Right to Education (RTE)

Question 3.
MTDC has launched the scheme to bring different experiment projects like village tourism, safari, etc.
Answer:
Mahabhraman

Question 4.
Second largest populated state in the country.
Answer:
Maharashtra

Question 5.
Largest employment generating sector.
Answer:
Service Sector

Question 6.
Industrially advanced state.
Answer:
Maharashtra

Question 7.
Number of Districts in Maharashtra.
Answer:
Thirty-Six (36)

Question 8.
An industry that focuses on customer satisfaction.
Answer:
Hospitality

Question 9.
A district was well known for regional films.
Answer:
Kolhapur

Question 10.
City popularly is known as “Bollywood”.
Answer:
Mumbai

Question 11.
The first state in the country to receive RUSA grant of ₹ 20 crores.
Answer:
Maharashtra.

1D. Arrange in proper order:

Question 1.
Highest Populated States
(a) Maharashtra
(b) West Bengal
(c) Uttar Pradesh
(d) Bihar
Options:
(1) a, c, d, b
(2) c, a, d, b
(3) d, c, b, a
(4) c, b, d, a
Answer:
(1) c, a, d, b

Question 2.
Largest Geographical Area
(a) Uttar Pradesh
(b) Madhya Pradesh
(c) Rajasthan
(d) Maharashtra
Options:
(1) a, b, d, c
(2) c, a, d, b
(3) d, c, b, a
(4) c, b, d, a
Answer:
(2) c, b, d, a

Question 3.
Levels of Education
(a) Primary
(b) Higher Secondary
(c) Secondary
(d) Higher Education
Options:
(1) a, d, b, c
(2) b, d, c, a
(3) a, c, b, d
(4) c, d, b, a
Answer:
(3) a, c, b, d

Question 4.
Sector of Economy
(a) Quaternary
(b) Tertiary
(c) Secondary
(d) Primary
Options:
(1) d, c, b, a
(2) a, b, d, c
(3) b, a, c, d
(4) d, b, a, c
Answer:
(4) d, c, b, a

1E. Find the odd word out:

Question 1.
Use of chemical fertilizers, Soil degradation, Inadequate irrigation facilities, Textiles.
Answer:
Textile

Question 2.
Textile, Automobile, Pharmaceutical, Climatic changes.
Answer:
Climatic changes

Question 3.
Unskilled labour, Tourism, Lack of infrastructure, Outdated technology.
Answer:
Tourism

Question 4.
Energy, Transport, Communication, Agriculture.
Answer:
Agriculture

1F. Complete the following statements:

Question 1.
Maharashtra state has been divided into ___________ districts.
Answer:
36

Question 2.
Maharashtra is the ___________ largest populated state in the country.
Answer:
Second

Question 3.
The population of Maharashtra was ___________ crores during 2011.
Answer:
11.24

Question 4.
Maharashtra is the ___________ largest state in the country in terms of geographical area.
Answer:
third

Question 5.
Geographical area of Maharashtra is about ___________ lac sq.km.
Answer:
3.08

Question 6.
According to 2011 census the sex ratio of Maharashtra was ___________ females per 1000 males.
Answer:
929

Question 7.
According to 2011 census literacy rate of Maharashtra was ___________
Answer:
82.3%

Question 8.
The share of agriculture and allied activities of Maharashtra during 2001-02 was ___________
Answer:
15.3%

Question 9.
The share of agriculture and allied activities of Maharashtra during 2016-17 was ___________
Answer:
12.2%

Question 10.
Maximum use of chemical and pesticides leads to ___________
Answer:
soil degradation

Question 11.
The share of Industries of Maharashtra is about ___________
Answer:
18%

Question 12.
In Economy, service sector is the largest ___________ generating sector.
Answer:
employment

Question 13.
The basic requirement for economic development is ___________
Answer:
Infrastructure

Question 14.
The backbone of socio-economic development of any country is ___________
Answer:
education

Question 15.
During 2016-17 the expenditure on primary education of the Maharashtra government’s was ___________ crores.
Answer:
₹ 19,486

Question 16.
Number of aided Ashram school in the Maharashtra state is ___________
Answer:
556

1G. Choose the wrong pair:

Question 1.

Group ‘A’	Group ‘B’
1. Share of agriculture	(a) 12.2%
2. Share of service sector	(b) 10%
3. Share of industry	(c) 18%

Answer:
Wrong Pair: Share of the service sector – 10%

Question 2.

Group ‘A’	Group ‘B’
1. Aided Ashram School	(a) 556
2. Primary health centers	(b) 1814
3. Community health centers	(c) 370

Answer:
Wrong Pair: Community health centers – 370

Question 3.

Group ‘A’	Group ‘B’
1. Hotel Industry	(a) Hospitality service
2. Secondary sector	(b) Harvesting
3. Primary sector	(c) Agriculture

Answer:
Wrong Pair: Secondary Sector – Harvesting

Question 4.

Group ‘A’	Group ‘B’
1. Primary health center	(a) 1814
2. Community health centers	(b) 360
3. Districts of Maharashtra	(c) 63

Answer:
Wrong Pair: Districts of Maharashtra – 63

1H. Choose the correct pair:

Question 1.

Group ‘A’	Group ‘B’
1. Maharashtra	(a) Problems of Agriculture
2. Impact of climate changes	(b) Agricultural Growth
3. Ashram school	(c) 36 districts
4. SEZ	(d) Industrial Growth

Answer:
Correct Pair: (4) SEZ – Industrial Growth

Question 2.

Group ‘A’	Group ‘B’
1. Economic infrastructure	(a) Education
2. Service Sector	(b) Largest Employment Generator
3. Aided Ashram School	(c) Sanitation and hygiene
4. NUHM	(d) 556

Answer:
Correct Pair: (2) Service Sector – Largest Employment Generator

2. Identify and explain the concepts from the given illustrations:

Question 1.
In tribal areas, for their progress, many schools have started.
Answer:
Tribal Education.
Ashram School, an initiative by Government of Maharashtra, provide food, uniform, educational material and other concessions to the tribal student for encouraging higher studies. There are 556 aided Ashram Schools in the state.

Question 2.
Hotel industries give better service to their customers.
Answer:
Hospitality.
Hospitality is all about the art of entertaining or receiving guests. It means friendly and generous receptions and entertainment of guests, visitors, or strangers. Hospitality is a broader industry than other industries and has grown rapidly in Maharashtra due to the development of the tourism business in Maharashtra.

Question 3.
In the process of economic development, Transport plays an important role.
Answer:
Service Sector.
The service sector supports both the primary and secondary sectors but involves important services like banking, transport, hotel, energy, etc. It is the largest employment generating and fastest-growing sector of the economy.

3. Assertion and Reasoning – Choose the correct answer from the following:

Question 1.
Assertion (A) – Agricultural productivity is affected by climatic changes.
Reasoning (R) – To increase agricultural activity, the development of irrigation facilities is necessary.
(i) (A) is true but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are True, but (R) is not the correct explanation of (A).
Answer:
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 2.
Assertion (A) – Education is the backbone of social-economic development.
Reasoning (R) – There are 4 levels of education like primary, secondary, higher secondary, and higher education.
(i) (A) is true but (R) is False.
(ii) (A) is false, but (R) is True.
(iii) Both (A) and (R) are True and (R) is the correct explanation of (A).
(iv) Both (A) and (R) are True, but (R) is not the correct explanation of (A).
Answer:
(iii) Both (A) and (R) are True and (R) is the correct explanation of (A).

4. State with reasons whether you agree or disagree with the following statements:

Question 1.
There are some important features of the economy of Maharashtra.
Answer:
Yes, I do agree with the statement.

• Maharashtra is the second largest populated state in India.
• It is the third-largest state in terms of geographical area.
• It is the most urbanized state.
• The literacy rate was 82.3% for Maharashtra as per the 2011 census.
• As per the 2011 census, the sex ratio was 929 females per 1000 males.
• As per the Economic survey 2016-2017, the state had the highest growth of GSDP (Gross State Domestic Product)
• The state of Maharashtra has abundant natural resources, skilled man power, developed infrastructure, and is technological advancement.
• It is the most favoured destination for investment and Tourism.

Question 2.
The agricultural sector has no problems.
Answer:
No, I do not agree with the statement.
The agricultural sector is the backbone of the Indian Economy as well as Maharashtra state. But still, this sector is facing many problems such as:

• Decrease in the average size of land.
• Maximum use of chemical fertilizers and pesticides.
• Lack of capital.
• Agricultural indebtedness.
• Fewer irrigation facilities.
• Lack of marketing.
• Climatic changes.
• Adverse crop pattern.
• Increase in the number of small and marginal farmers.

5. Read the following passage and answer the questions given below:

Maharashtra Water Resources Regulatory Authority (MWRRA) is a Government of Maharashtra initiative founded in August 2005 and one of the key people is Mr. K.P. Bakshi as chairman. Administrative and legal reforms constitute broadly what is known as the Water Sector Reform. The institute is responsible for the regulation, allocation, management, and utilization of limited water resources in the state. The MWRRA was authorized to control and set water tariffs. All water regulation projects are abode to have clearance from MWRRA. This project could be from irrigation, industrial users, and urban and rural domestic consumers.

Question 1.
What is the government of Maharashtra’s initiative on water resources?
Answer:
Maharashtra Water Resources Regulatory Authority (MWRRA) is an initiative taken by the government of Maharashtra.

Question 2.
What is the function of MWRRA?
Answer:
The main function of MWRRA is as follows:
It is responsible for the regulation, allocation, management, and utilization of limited water resources in the state of Maharashtra.

Question 3.
In which year MWRRA is formed and who is the key person?
Answer:
MWRRA is formed in August 2005 and the name of the key person is Mr. K.P. Bakshi who is the chairman.

Question 4.
Do you think MWRRA is authorized to set water tariffs? Kindly explain.
Answer:
Yes, MWRRA is authorized to control and set water tariffs. All water regulation projects are abode to have clearance from MWRRA. This project could be from irrigation, industrial users, and urban and rural domestic consumers.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 3 Partition Values Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 3 Partition Values

1A. Complete the correlation:

Question 1.
Quartiles : 4 parts : : 10 parts : __________
Answer:
Deciles

Question 2.
10 parts : Deciles : : Percentiles : __________
Answer:
100 parts

Question 3.
Individual Data : __________ : : Discrete Data : \(\bar{x}=\frac{\sum f_{i} x_{i}}{n}\)
Answer:
\(\bar{x}=\frac{\sum x}{n}\)

Question 4.
Q₂ : Q₅₀ : : D₅ : __________
Answer:
Median

1B. Suggest the economic terms for the given statements:

Question 1.
The value that divides the data into hundred equal parts.
Answer:
Percentiles

Question 2.
Values that divide the data into the required number of equal parts.
Answer:
Partition values or Fractiles

Question 3.
Value of the middlemost observation in the data.
Answer:
Median

Question 4.
Extreme value on the lower side and higher side in magnitude.
Answer:
Outliers

Question 5.
Q₂ = D₅ = P₆₀
Answer:
Median

Question 6.
Partition value used in the measurement of test scores, health indicators, etc.
Answer:
Percentiles

Question 7.
Partition value is used to assess the performance of portfolio investment.
Answer:
Declies

1C. Arrange in proper order:

Question 1.
Steps to find Q₁ and Q₃ for continuous frequency distribution.
(a) Determine the quartile class
(b) Arrange the data in ascending or descending order.
(c) Find out cumulative frequency (cf)
(d) Write respective frequencies of the class
Options:
(1) a, b, c, d
(2) b, d, c, a
(3) b, c, d, a
(4) c, d, b, a
Answer:
(1) b, d, c, a

1D. Find the odd word out:

Question 1.
Percentile, Mercantile, Decile, Quartile
Answer:
Mercantile

Question 2.
Mean, Mode, Meridian, Median
Answer:
Meridian

Question 3.
P.C.Mahalanobis, Statistics Day, Fractile Graphical Analysis, Demand Analysis.
Answer:
Demand Analysis

Question 4.
Percentile, Health indicator, Quartile, Household income.
Answer:
Quartile

1F. Complete the following statement.

Question 1.
There are __________ deciles.
Answer:
nine

Question 2.
There are __________ percentiles.
Answer:
ninety-nine

Question 3.
There are __________ quartiles.
Answer:
three

Question 4.
50th percentile is equal to __________ deciles.
Answer:
fifth

Question 5.
25th percentile is equal to __________ quartile.
Answer:
first

Question 6.
Percentiles divide the series in __________ equal parts.
Answer:
hundred

Question 7.
Value that divides the data into 10 equal parts is called __________
Answer:
deciles

Question 8.
50th percentile is equal to __________
Answer:
5th decile

Question 9.
The value of the first quartile is __________
Answer:
\(\left(\frac{n+1}{4}\right)^{\text {th }}\) observation

Question 10.
The value of the 3rd quartile is __________
Answer:
\(3\left(\frac{n+1}{4}\right)^{\text {th } \text { Observation }}\)

Question 11.
Value that divides the whole set of observation into four equal parts is called __________
Answer:
Quartile

Question 12.
29th June is celebrated as __________
Answer:
Statistics Day

Question 13.
Value which divide the data into required number of equal parts are called __________
Answer:
partition values

Question 14.
Fractile graphical analysis, a statistical method was devised by __________
Answer:
Prof. P. C. Mahalanobis.

2. Distinguish between:

Question 1.
Quartiles and Deciles.
Answer:

Quartiles	Deciles
(i) Quartiles are the values that divide the series into four equal parts.	(i) Deciles are the values that divide the series into ten equal parts.
(ii) These are the 3 values that divide the distribution into 4 parts, each representing one-quarter of the score.	(ii) These are the 9 values that divide the distribution into 10 parts.
(iii) It is denoted by: Q1, Q2, and Q3	(iii) It is denoted by D1, D2, D3, …………. D9
(iv) 2nd Quartile is the median.	(iv) 5th Decile is the median.

Question 2.
Deciles and Percentiles.
Answer:

Deciles	Percentiles
(i) Deciles are the values that divide the series into 10 equal parts.	(i) Percentiles are the values that divide the series into 100 equal parts.
(ii) These are the 9 values that divide the distribution into 10 parts.	(ii) These are the 99 values that divide the distribution into 100 parts.
(iii) It is denoted by D1, D2, D3, ……. D9	(iii) It is denoted by P1, P2, P3, ……… P99
(iv) 5th Decile is median.	(iv) 50th percentile is median.

3. Solve the following:

Type – I: Problems Based on Quartiles

Question 1.
Find Q₁, Q₂ and Q₃ from the following data:
65, 82, 68, 67, 84, 83, 66, 69, 81, 70, 85
Answer:
Q₁ = 67, Q₂ = 70, Q₃ = 83

Question 2.
Find Q₁ and Q₃ from the following data:
3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15
Answer:
Q₁ = 6, Q₃ = 12

Question 3.
Find first and third Quartiles from the following data:

Answer:
Q₁ = 34, Q₃ = 40

Question 4.
Find Q₁, Q₂, and Q₃?

Answer:
Q₁ = 450, Q₂ = 550, Q₃ = 650

Question 5.
Find Q₁ and Q₃ from the following data:

Answer:
Q₁ = 250, Q₃ = 450

Question 6.
Find Q₄ and Q₃ from the following data:

Answer:
Q₄ = 20.33 , Q₃ = 35.25

Question 7.
Find Q₁, Q₂, and Q₃:

Answer:
Q₁ = 17.22, Q₂ = 27.41, Q₃ = 39

Type – II: Problems Based on Decile

Question 1.
Find D₄ and D₈ from the following data:
20, 26, 24, 32, 22, 28, 30, 36, 34
Answer:
D₄ = 26, D₈ = 34

Question 2.
Find D₁, D₄, and D₈ for the following data:
61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79.
Answer:
D₁ = 62, D₄ = 68, D₈ = 76

Question 3.
Find D₂ and D₄ from the following data:

Answer:
D₂ = 20, D₄ = 40

Question 4.
Find D₅ and D₉:

Answer:
D₅ = 4, D₉ = 5

Question 5.
Find D₅ for the following distribution.

Answer:
D₅ = 40.33

Question 6.
Find D₄ and D₆ from the following data:

Answer:
D₄ = 30, D₆ = 43

Type – III: Problems Based on Percentiles

Question 1.
Find Percentiles:
Calculate 50th Percentile from the following data:
20, 25, 30, 35, 40, 45, 50, 55, 60
Answer:
P₅₀ = 40

Question 2.
Calculate P₂₁ and P₉₇ for:

Answer:
P₂₁ = 3, P₉₇ = 8

Question 3.
Find P₉₀ from the following data:

Answer:
P₉₀ = 40

Question 4.
Calculate P₆₀ and P₈₀ from the following data:

Answer:
P₆₀ = 40, P₈₀ = 48.33

Type – IV: Comprehensive Problems

Question 1.
Find Q₁, D₅ and P₄₅ for the following data:

Answer:
Q₁ = 1862.64, D₅ = 2666.67, P₄₅ = 2500

4. State with reasons whether you agree or disagree with the following statements

Question 1.
Q₂ divides the series into equal parts.
Answer:
Yes, I agree with the statement.

• Quartiles are the values of data that divide the series or data into four equal parts.
• Each represents one-quarter of the data when arranged in ascending and descending order.
• These 3 values are called Q₁, Q₂, and Q₃.
• Q₂ is nothing but the median or the middlemost value.
• Hence, Q₂ divides the series into two equal parts.

Question 2.
The 25th percentile is equal to the first quartile.
Answer:
Yes, I agree with the statement.

• Percentile is the value that divides the series into 100 equal parts, while quartile divides the series into 4 equal parts.
• Therefore, the first quartile is equal to the 25th percentile.

Question 3.
There is no difference between quartiles, deciles, and percentiles.
Answer:
No, I do not agree with the statement.

• Quartiles are the values that divide the series into 4 equal parts, whereas deciles are the values that divide the series into 10 equal parts, while percentiles divide the series into 100 equal parts.
• Quartiles consist of 3 values, while deciles are of 9 values and percentiles are of 99 values.
• Hence, though quartiles, deciles, and percentiles are interrelated, they differ from each other.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 2 Money Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 2 Money

1A. Choose the correct option:

Question 1.
Qualities of Money
(a) General Acceptability
(b) Durability
(c) Non-divisibility
(d) Portability
Options:
(1) a, c, d
(2) a, b, c
(3) a, b, d
(4) b, c, d
Answer:
(3) a, b, d

Question 2.
Difficulties in Barter System
(a) Problem of Double coincidence of wants
(b) Lack of common measure of value
(c) Difficulties in the storage of goods
(d) Divisibility of goods possible
Options:
(1) b, c, d
(2) a, b, c
(3) a, b, c, d
(4) a, b, d
Answer:
(2) a, b, c

Question 3.
Statement related to Barter System
(a) Exchange of goods for goods
(b) Mobile Phone, Tablet, Smart Cards, Digital Wallet
(c) Problem of deferred payments
(d) Lack of common measure of value
Options:
(1) a, c, d
(2) a, b, c
(3) b, c, d
(4) b, d
Answer:
(1) a, c, d

Question 4.
Statement not related to Standard coins
(a) Face value greater than the intrinsic value
(b) It is also called as full-bodied coins
(c) It is made of gold or silver
(d) Face value is equal to intrinsic value
Options:
(1) a, b, c
(2) b, c
(3) a, b, d
(4) b, c, d
Answer:
(4) b, c, d

Question 5.
Not a Commodity money
(a) Feathers
(b) Tusk
(c) Aluminium
(d) Animal skin
Options:
(1) b, a
(2) c, d
(3) c
(4) a, c
Answer:
(3) c

Question 6.
Features of non-legal tender money
(a) No legal compulsion
(b) Cheques, Bill of exchange, etc
(c) Generally, used by people for final payment
(d) It is backed by law
Options:
(1) a, c, d
(2) a, b, c
(3) b, d
(4) b, c, d
Answer:
(2) a, b, c

Question 7.
Secondary functions of money
(a) Standard of Deferred payments
(b) Store of value
(c) Medium of Exchange
(d) Transfer of value
Options:
(1) b, c
(2) a, b, c
(3) a, b, d
(4) b, c, d
Answer:
(3) a, b, d

Question 8.
Contingent functions of money
(a) Imparts liquidity to wealth
(b) Measurement of National Income
(c) Basis of Credit
(d) Estimation of macro-economic variable
Options:
(1) a, b, c
(2) b, c, d
(3) a, c, d
(4) a, b, c, d
Answer:
(4) a, b, c, d

Question 9.
Concept of Black money
(a) Money not accounted for
(b) tax evaded money
(c) encourages bribery, hoarding, etc
(d) discourages illegal activities
Options:
(1) a, d
(2) b, c, d
(3) a, b, c
(4) a, b, d
Answer:
(3) a, b, c

Question 10.
Features of Bank money
(a) Refers to deposits saved by people
(b) Demand draft, cheque, etc
(c) Legal tender money
(d) Nonlegal tender money
Options:
(1) a, b, d
(2) b, c, d
(3) a, c, d
(4) b, d
Answer:
(1) a, b, d

1B. Complete the correlation:

Question 1.
Bills of exchange : Credit money : : Feathers : __________
Answer:
Commodity Money

Question 2.
Primary function of money : Medium of exchange : : __________ : Deferred payment.
Answer:
Secondary functions of money

Question 3.
Commodity money : Metals, Rice : : __________ : Credit card.
Answer:
Plastic money

Question 4.
Standard coins : Gold, silver : : __________ : Cheap metal.
Answer:
Token coins

Question 5.
India : Rupees : : __________ : Dollar.
Answer:
USA

Question 6.
Animal money : Oldest form of money : : __________ : Latest form of money.
Answer:
Electronic money

Question 7.
Currency notes : Unlimited legal tender : : Token coins : __________
Answer:
Limited legal tender

Question 8.
U.K. : Pound : : __________ : Yen
Answer:
Japan

Question 9.
Credit Cards : Plastic Money : : Digital Wallet : __________
Answer:
Electronic money

Question 10.
₹ 1 note : __________ : : ₹ 100 note : Reserve Bank of India.
Answer:
Govt, of India

1C. Suggest the economic terms for the given statements.

Question 1.
A financial institution that accepts deposits of money from the public.
Answer:
Bank

Question 2.
Exchange of goods for goods without the use of money.
Answer:
Barter system

Question 3.
Coins whose face value is higher than their intrinsic value.
Answer:
Token coins

Question 4.
Coins whose face value is equal to their intrinsic value.
Answer:
Standard or Full-bodied coins

Question 5.
Money that is backed by law and cannot be refused in transactions by anybody.
Answer:
Legal tender money

Question 6.
Money is generally used by the people but there is no legal compulsion of accepting it.
Answer:
Nonlegal tender money

Question 7.
Payment to be made at a future date.
Answer:
Deferred payment

Question 8.
Name the function of money when it serves as a medium of exchange and measure of value.
Answer:
Primary functions

Question 9.
Tool to control black money.
Answer:
Demonetization

1D. Arrange in proper order:

Question 1.
Evolution of money
(a) Paper money
(b) Animal money
(c) Plastic money
(d) electronic money
Answer:
b, a, c, d

Question 2.
Function of money
(a) Transfer of value
(b) Medium of exchange
(c) Store of value
(d) Basis of credit
Answer:
b, c, a, d

1E. Find the odd word out.

Question 1.
Definitions of money not given by
(a) Walker
(b) Crowther
(c) Marshall
(d) Seligman
Answer:
(c) Marshall

Question 2.
Not a good quality of money
(a) Homogeneity
(b) Portability
(c) Cognizability
(d) Changing the value of money
Answer:
(d) Changing the value of money

Question 3.
Not a standard of deferred payment
(a) Paper money
(b) Commodity money
(c) Bills of exchange
(d) Demand drafts
Answer:
(b) Commodity money

Question 4.
Not a metallic money
(a) silver
(b) stones
(c) aluminium
(d) nickel
Answer:
(b) stones

1F. Complete the following statements:

Question 1.
Money is anything that is generally accepted as a means of exchange and at the same time __________
Answer:
acts as a measure and store of value

Question 2.
Token coins are those whose face value __________
Answer:
is higher than their intrinsic value

Question 3.
Cow, sheep, horse, etc. used as a means of exchange are __________
Answer:
commodity money

Question 4.
Money that is backed by law and cannot be refused in the transaction are called __________
Answer:
legal tender money

Question 5.
Any two qualities of good money __________
Answer:
recognizability, divisibility

Question 6.
Money used for purchases and transactions globally is __________
Answer:
electronic money

Question 7.
In India, one rupee note and all coins are issued by the __________
Answer:
Government of India

Question 8.
Currency notes of higher denominations are issued by the __________
Answer:
Central Bank (RBI)

Question 9.
Money is a link between __________
Answer:
Present and future

Question 10.
Payments to be made at a future date is called __________
Answer:
deferred payments

Question 11.
In the case of token coins, intrinsic value is __________
Answer:
less than its face value

Question 12.
The most liquid asset is __________
Answer:
money

Question 13.
Introduction of money removed __________
Answer:
the difficulties of the barter system

Question 14.
Money that leads to political, economic and social instability in a country is __________
Answer:
Black money

Question 15.
Bank draft is an example of __________
Answer:
Bank money

Question 16.
In India, paper currency is known as __________
Answer:
Legal tender money

Question 17.
Use of Debit and Credit cards are examples of __________
Answer:
Plastic money

Question 18.
“Money is what money does”, this definition is given by __________
Answer:
Prof. Walker

1G. Choose the wrong pair:

Question 1.

Group ‘A’	Group ‘B’
1. Standard coin	(a) Face value more than the intrinsic value
2. Bills of Exchange	(b) Credit money
3. Black Money	(c) Illegal money

Answer:
Wrong Pair: Standard coin – face value more than intrinsic value.

Question 2.

Group ‘A’	Group ‘B’
1. Commodity money	(a) cow, sheep, horse, etc.
2. Barter System	(b) Double coincidence of wants
3. Electronic money	(c) Gold coins

Answer:
Wrong Pair: Electronic money – Gold coins

Question 3.

Group ‘A’	Group ‘B’
1. Quality of money	(a) Cognizability
2. Secondary function of money	(b) Medium of Exchange
3. Rs. 100	(c) Legal tender money

Answer:
Wrong Pair: Secondary function of money – Medium of Exchange.

1H. Choose the correct option:

Question 1.

Group ‘A’	Group ‘B’
1. Near Money	(a) Seashells
2. Secondary function of money	(b) Double coincidence of wants
3. Commodity money	(c) Bills of Exchange
4. Barter System	(d) Standard of deferred payments
5. Legal tender	(e) Paper money

Options:
(A) 1 – e; 2 – b; 3 – a; 4 – d; 5 – c
(B) 1 – b; 2 – a; 3 – d; 4 – c; 5 – e
(C) 1 – c; 2 – d; 3 – a; 4 – b; 5 – e
(D) 1 – a; 2 – d; 3 – c; 4 – e; 5 – b
Answer:
(C) 1 – c; 2 – d; 3 – a; 4 – b; 5 – e

Question 2.

Group ‘A’	Group ‘B’
1. Token Coin	(a) Credit Money
2. Standard coin	(b) Not steady
3. Money	(c) Medium of Exchange
4. Value of Money	(d) Face value more than intrinsic value
5. Bills of Exchange	(e) Face value equal to intrinsic value

Options:
(A) 1 – a; 2 – b; 3 – c; 4 – e; 5 – d
(B) 1 – d; 2 – e; 3 – c; 4 – b; 5 – a
(C) 1 – c; 2 – e; 3 – d; 4 – a; 5 – b
(D) 1 – e; 2 – c; 3 – b; 4 – a; 5 – d
Answer:
(B) 1 – d; 2 – e; 3 – c; 4 – b; 5 – a

Question 3.

Group ‘A’	Group ‘B’
1. Metallic Coins	(a) Latest development in credit money
2. Commodity Money	(b) Cheques
3. Paper Money	(c) Currency Notes
4. Bank Money	(d) Problem of divisibility
5. Electronic money	(e) Gold coins

Options:
(A) 1 – a; 2 – b; 3 – c; 4 – d; 5 – e
(C) 1 – d; 2 – e; 3 – a; 4 – b; 5 – c
(B) 1 – c; 2 – b; 3 – a; 4 – e; 5 – d
(D) 1 – e; 2 – d; 3 – c; 4 – b; 5 – a.
Answer:
(D) 1 – e; 2 – d; 3 – c; 4 – b; 5 – a

2. Distinguish between:

Question 1.
Barter Economy and Money Economy.
Answer:

Barter Economy	Money Economy
(i) Barter economy is a moneyless economy where goods are exchanged for goods.	(i) Money economy is one where money is commonly used as a medium of exchange.
(ii) In this economy exchange of goods for goods is direct.	(ii) In this economy exchange of goods is indirect i.e. through money.
(iii) Exchange of transactions is few and difficult.	(iii) Exchange of transactions is many and smooth.
(iv) Barter economies are rarely found.	(iv) Almost all economics in the world are money economies.

Question 2.
Metallic Money and Paper Money.
Answer:

Metallic Money	Paper Money
(i) It refers to money which is made of metals like gold, silver, and copper, etc.	(i) It refers to that money which is in form of paper currency notes issued by the Govt, and the Central Bank of the country.
(ii) They are durable.	(ii) They are less durable.
(iii) Metallic money is not easily portable.	(iii) Paper money is more convenient and they are light in weight, so it is portable.
(iv) They are suitable for small transactions.	(iv) They are suitable for larger transactions.
(v) Metallic money was introduced earlier to paper money.	(v) Paper money was subsequently issued after metallic money.
(vi) Metallic money is not economical to produce.	(vi) Paper money is easier and cheaper to print.

Question 3.
Standard Coins and Token Coins.
Answer:

Standard Coins	Token Coins
(i) Standard coins are those coins whose face value is equal to its intrinsic value.	(i) Token coins are those coins whose face value is greater than its intrinsic value or metal value.
(ii) These are made of costly metals like gold, silver, etc.	(ii) These are made of cheap metals like nickel, aluminium, etc.
(iii) Indian rupees during the king’s rule were made of gold, silver, etc.	(iii) In today’s time these are used for making small payments.
(iv) These are rarely used now.	(iv) Token coins in India are ₹ 10, 5, 2, 1.

Question 4.
Legal Tender Money and Non-Legal tender Money.
Answer:

Legal Tender Money	Non-Legal Tender Money
(i) Legal Tender Money is the money that is backed by law and refusal to accept will be punishable by law.	(i) Non-legal tender money is the money that is generally used by people but there is no legal compulsion to accept it.
(ii) It is issued by the Central bank of the country.	(ii) It is issued by commercial banks.
(iii) It is freely accepted as a medium of exchange.	(iii) It is not legal tender money. No one can force you to accept it.
(iv) Currency notes issued by RBI in denominations ₹ 5, 10, 20, 50, 100, 200, 500, 2000 are legal tender money.	(iv) Negotiable instruments such as cheques, bank drafts, bills of exchange are non-legal tender money.

3. Answer the following:

Question 1.
Write any two most commonly accepted definitions of money.
Answer:
Some most commonly accepted definitions are as follows:

• Prof. Walker – “Money is what money does”.
• Prof Crowther – He has given the most acceptable definition. “Money is anything that is generally accepted as a means of exchange and at the same time, acts as a measure and as a store of value”.

Question 2.
What are the qualities of good money?
Answer:
Qualities of good money are as follows:

• General Acceptability: It must be generally accepted as a medium of exchange.
• Stability of Value: The purchasing power of money should be stable because money serves as a store of value.
• Cognizability: It must be easily recognizable or identifiable. For E.g. Notes of different denominations must be of different sizes, colours, etc., so that they can be easily identified.
• Durability: Money should be durable also. Its value should not fluctuate too much.
• Divisibility: Money should be divisible into units of smaller denominations.
• Portability: It should be easy to handle and carry from one place to another.
• Homogeneity: Money of the same denomination should be identical in shape, size, colour, etc.

Question 3.
What is meant by
(i) Black money
(ii) Electronic money
Answer:
(i) Concept of black money: Black money is unaccounted money which is illegally obtained and not declared for tax purposes. It encourages illegal activities, corruption, bribes, etc. This creates an obstacle to economic development.

(ii) Electronic Money: It is also called E-money. It is a monetary value that is stored and transferred electronically through mobile phones or tablets or smart cards or computers. It is backed by Central Bank and is used for purchases and other transactions globally.

Question 4.
What are the advantages of cashless payments or plastic money?
Answer:
Advantages of cashless payments or plastic money:

• It reduces the burden of carrying cash while traveling.
• It is easy to use plastic money like debit cards and credit cards.
• It will restrict the inflow of duplicate money as cash is not used at all.
• Fear of loss of money while traveling will not be there. If the card is lost we can inform our banks and get all transactions stopped.
• Corruption and black money transaction will be controlled as all transactions will be done through banks which will bring transparency to our transactions.
• We also get a credit period if payments are made through credit cards.

4. State with the reasons whether you agree or disagree with the following statements:

Question 1.
Money is the most liquid asset.
Answer:
Yes, I agree with the statement.

• Money is the most liquid asset because it is generally acceptable.
• It is a 100% liquid asset in the sense that it can be converted into any type of asset with no loss in its value
• Money helps to transfer immovable properties like land by selling it at one place and purchasing similar property at another place or from one person to another without any difficulty.
• In other words, it makes illiquid assets like land, buildings, etc., into liquid assets.
• Money as a store of value is also the most liquid asset, as compared to other assets like diamonds, houses, land, etc.

Question 2.
Money has no store of value.
Answer:
No, I do not agree with the statement.

• Money performs an important function as a store of value.
• Although wealth can be stored in a form other than money, money is the most convenient form in which wealth can be stored. Since money is the most liquid asset, it can be used for future use whenever needed.
• Money can be stored without the loss in its value.
• This was not possible under barter exchange because goods could not be stored for a long time and there could be lost in the value of commodities.
• This function of money enables people to save a part of their income and store it for future use.
• Savings lead to capital formation which in turn will lead to the economic development of a country.

Question 3.
There are no disadvantages to paper money.
Answer:
No, I do not agree with the statement.
Although paper money has many advantages and it has economized the use of precious metals it suffers from the following disadvantages:

• The government may over the issue when there is a deficit in the budget and this may lead to inflation.
• It is less durable as compared to metallic money.
• It can be circulated only in the domestic economy, it is not useful for international trade.

Question 4.
Credit Money can be refused.
Answer:
Yes, I agree with the statement.
Credit money can be refused because

• Credit money refers to Bank money.
• Bank money is not legal tender money.
• No one can force to accept this money.
• It is not punishable if it is not accepted.
• Hence, Credit Money can be refused.

Question 5.
Plastic money can play an important role in eradicating corruption in India.
Answer:
Yes, I agree with the statement.
More and more use of plastic money can help in eradicating corruption in India in the following ways:

• Every transaction detail is recorded by the bank when the transaction is done through plastic money.
• None of the money transactions are illegal as these take place through banks.
• At the international level, all the conversion of Indian currency into dollars or Swiss dollars can be recorded with transactions done through plastic money.
• It’s only when transactions take place in cash, bribery and other illegal activities take place.
• But the use of plastic money is easy to use, easy to keep records, and hence will help in removing corruption.

5. Answer in detail:

Question 1.
Define barter system. What are the difficulties faced by people under this system?
Answer:
Barter system refers to the system where goods are exchanged for goods without the use of money. Difficulties of barter system:
(a) Problem of double coincidence of wants: Lack of double coincidence of wants means when two persons may not desire to purchase each other’s goods. For example Mr. A has wheat and wants salt. So Mr. A has to search for Mr. B who wants wheat and has salt, otherwise, the exchange would not be possible.

(b) Lack of common measure of value: In olden times there was no common unit in terms of which the value of goods could be measured.

(c) Indivisibility of certain goods: There was a problem of exchange when a person had large commodities which could not be divided into smaller units Eg. 1 goat = 20 kg rice. If a person wanted 5 kg of rice, the goat could not be cut and exchanged.

(d) Difficulty in the storage of goods: It was necessary to store goods for future use but as most of the things were perishable, it was difficult to store.

(e) Problem of making deferred payments: It means a payment to be made in the future. For E.g. taking a loan and making a payment in the future was not possible in the barter system. So, to overcome these difficulties of the barter system, people invented some other kind of money.

Question 2.
What are the different stages in the evolution of money? Or Explain the different types of money.
Answer:
The evolution of money has passed through various stages with the development of civilization.
Following are the various stages of money which evolved gradually with the need and time:
(a) Animal money: In the primitive age (prehistoric period) animals like cows, goats, sheep, etc. were used as a common medium of exchange. In hot climatic countries cow, ox, etc. were chosen as a medium of exchange.

(b) Commodity money: In certain countries, commodities like shells, wheat, rice, tobacco, wool, fur, salt, etc. were used as money. In cold countries, skin and fur were used as a medium of exchange. But due to the lack of uniformity and storage, metallic money was evolved.

(c) Metallic money: With the progress of civilization, precious metals like gold and silver came into use as money. Initially, metallic money was imperfect in size, shape, weight, etc. But the scarcity of precious metals gave rise to the of use of metallic coins.

(d) Metallic coins: Use of metals led to the introduction of coins. Rulers in olden times affixed their seal on metallic money. These coins were of two types.

• Standard or full-bodied coins : Coins for which the face value is equal to its intrinsic (metal) value are known as standard or full-bodied coins. E.g. gold and silver coins.
• Token coins: Coins for which the face value is greater than intrinsic value are known as token coins. E.g. coins made of nickel, copper, aluminium, etc. In India token coins are of ₹ 1, ₹ 2, ₹ 5, and ₹ 10. But difficulties in the transportation of token coins gave rise to paper money.

(e) Paper money: Paper money is made of paper. In India all currency notes of ₹ 5, ₹ 10, ₹ 50, ₹ 100, ₹ 200,
₹ 500, and ₹ 2000 are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. Paper money has a very small intrinsic value of its own.

(f) Bank money or Credit money: Bank money refers to bank deposits. This can be withdrawn or transferred on demand by means of cheque, demand draft, etc. These are not legal tender money, but through credit instruments, money can be transferred from one place to another and from one person to another. Today most of the big payments are made or received through cheques.

(g) Plastic money: In recent years due to the advancement of technology use of plastic money like credit cards, debit cards also have become very popular.

(h) Electronic money: It is the most recent development of money. Funds are electronically transferred through mobile phones, smart cards, etc. With this invention, transactions through worldwide have become very easy and popular.

Question 3.
Explain in detail the main functions of money.
Answer:
Functions of money can be broadly divided into the following 3 groups:

• Primary functions
• Secondary functions
• Contingent functions.

(a) Primary Functions:

• Medium of exchange: The most important function of money is to make buying and selling of goods and services possible in the market ie. it serves as a medium of exchange. Thus, money facilitates the sale and purchase of goods in the
• market.
• Measure of value or unit of account: Price is the value of a commodity or service expressed in terms of money. Hence it becomes easier for anyone to compare or know the value of any two or more commodities.

Different countries use different currencies to express the value of their commodities. E.g. Rupee in India, Pound in the UK, Dollar in the USA, etc. Thus, money as a measure of value helps in estimating the cost, revenue, and profits of the business firms.

(b) Secondary Functions

• Standard of deferred payment: Deferred payments are the payments that are to be made at a future date. Buying and lending were not possible in a barter economy. Now, this function of money develops financial and capital markets and helps in the growth of the economy.
• Store of value: Money acts as a store of value. It is a convenient form in which we can store the value or savings for future use. According to J.M. Keynes, money is a link between the present and future. .
• Transfer of value: Money helps to transfer values from one place to another or from one person to another due to its general acceptability. One can sell his movable or immovable belonging at one place and buy at another place. Values can thus be transferred. In modern times people generally use cheques, electronic transfers, etc instead of using currency notes for transferring values.

(c) Contingent Functions:

• Measurement of National Income: Country’s National Income accounting is possible only because of money as a unit of account.
• Basis of credit: Modern economy is based on credit i.e. promise to pay. Hence lending and borrowing activities are made easy by using money. Money Provides a base for the creation of credit money.
• Estimates of macroeconomic variables: Macroeconomic variables such as Gross National Product (GNP), total investments, total savings, taxes, etc. can be easily estimated in money terms.
• Imparts liquidity: Money is the most liquid asset which can be easily converted into any other asset. For example land, machinery, shares, etc. can be bought and sold in terms of money.

6. Case Study:

Read the passage and answer the following questions:

Shiv is working in the USA and his old parents live in Mumbai. Every month he transfers money from there in father’s bank account and also pays all their utility bills from there.

Question (a).
What type of money is used by Shiv?
Answer:
Shiv uses an electronic, mode of money for transferring money from the USA.

Question (b).
Write any one way how parents can withdraw cash?
Answer:
Parents of Shiv can withdraw money by means of a cheque or withdrawal slip.

Question (c).
Suggest anyone App that can be used by parents.
Answer:
Parents in Mumbai can use the app – called “Google Pay”.

Balbharti Maharashtra State Board Class 11 Economics Important Questions Chapter 1 Basic Concept in Economics Important Questions and Answers.

Maharashtra State Board 11th Economics Important Questions Chapter 1 Basic Concept in Economics

1A. Choose the correct option:

Question 1.
Key points in Adam Smith’s definition:
(a) Non-intervention of the Government.
(b) Capital & Wealth accumulation.
(c) Study of an ordinary man.
(d) Economics is a science of wealth.
Options:
(1) a, b and c
(2) a and b
(3) a, b and d
(4) b, c, and d
Answer:
(3) a, b and d

Question 2.
Statement incorrect with reference to Robbins definition:
(a) Means have specific uses.
(b) Welfare-oriented definition.
(c) Wants are unlimited.
(d) Means are scarce.
Options:
(1) a, b and c
(2) a and b
(3) c and d
(4) a, b and d
Answer:
(2) a and b

Question 3.
Statements related to National Income:
(a) Money value of goods and services produced in a year.
(b) It reveals the total economic performance of a nation.
(c) It is a macroeconomic concept.
(d) Income received by the person from all sources.
Options:
(1) a, b and d
(2) a, b, c, and d
(3) a, b and c
(4) b, c, and d
Answer:
(3) a, b and c

Question 4.
Aspects considered in microeconomics:
(a) Micro means small.
(b) It deals with the behaviour of the individual economic units.
(c) It covers the study of the entire economy.
(d) It includes national income.
Options:
(1) a, b and c
(2) a and b
(3) b, c, and d
(4) a, b and d
Answer:
(2) a and b

Question 5.
Statements related to features of Land:
(a) Resources available on, below, and above the surface.
(b) It is a natural factor of production.
(c) It is a man-made factor of production.
(d) It earns rent as a reward.
Options:
(1) a, b
(2) a, b, c, d
(3) a, b, d
(4) c, d
Answer:
(3) a, b, d

Question 6.
Statements related to features of Labour:
(a) Physical or mental effort undergone.
(b) It earns wages as a reward.
(c) Playing football for self-satisfaction.
(d) Gives coaching for football in XYZ school.
Options:
(1) a, c
(2) a, b, d
(3) a, b, c, and d
(4) b, d
Answer:
(2) a, b, d

Question 7.
Statement not related to Kenneth Boulding definition of Macro Economics:
(a) Macro Economic deals with totality or aggregate.
(b) Macro Economic deals with individual output.
(c) Macro Economic deals with National Income.
(d) Macro Economic deals individual price level.
Options:
(1) a, b, c
(2) c, d
(3) b, c
(4) b, d
Answer:
(4) b, d

1B. Complete the correlation:

Question 1.
Chemistry : Natural Science : : Economics : __________
Answer:
Social Science

Question 2.
Natural Science : __________ : : Social Science : Inexact
Answer:
Exact

Question 3.
Adam Smith : Wealth of Nation : : Kautilya : __________
Answer:
Arthashastra

Question 4.
Land : __________ : : Labour : Wages
Answer:
Rent

Question 5.
Necessity : Water : : __________ : Air conditioned car.
Answer:
Luxury

Question 6.
National Income : Macro economics : : Personal Income : __________
Answer:
Micro economics

Question 7.
Goods : Chalk : : __________ : Teaching
Answer:
Services

Question 8.
Prof. Marshall : Welfare oriented definition : : __________ : Scarcity oriented definition.
Answer:
Prof. Robbins

Question 9.
Wages : Fixed income : : Profit : __________
Answer:
Fluctuating income

Question 10.
Economic Want : Medicine : : Non-Economic Want : __________
Answer:
air/sun-shine

1C. Suggest the economic terms for the given statements:

Question 1.
Unemployment is created due to cyclical fluctuations.
Answer:
Cyclical Unemployment

Question 2.
Continuous fall in overall prices in an economy.
Answer:
Depression

Question 3.
Continuous rise in the general price level in an economy.
Answer:
Inflation

Question 4.
The aggregate monetary value of all final goods and services produced in a country during a year.
Answer:
National Income

Question 5.
Want satisfying capacity of a commodity.
Answer:
Utility

Question 6.
Earnings are received by a person from all sources.
Answer:
Personal Income

Question 7.
Leftover income after payment of taxes etc.
Answer:
Personal Disposable Income

Question 8.
Income is received in the actual currency of the country.
Answer:
Money Income

Question 9.
Wants which are satisfied at the individual level.
Answer:
Individual Wants

Question 10.
An economic study of a particular firm, a particular household, etc.
Answer:
Micro Economics

Question 11.
A great statesman, philosopher during Mourya Period.
Answer:
Kautilya

Question 12.
Wants that are meant for pleasure and enjoyment.
Answer:
Luxuries

Question 13.
Wants that are basic in nature.
Answer:
Necessities

Question 14.
Income received without indulging in any productive activity.
Answer:
Unearned Income

Question 15.
Increase in Real National Income of the country over a long period of time.
Answer:
Economic growth

Question 16.
Real captain of industry.
Answer:
Entrepreneur

1D. Find the odd word out:

Question 1.
Mathematics, Economics, Physics, Chemistry
Answer:
Economics

Question 2.
Psychology, Sociology, Economics, Chemistry
Answer:
Chemistry

Question 3.
Adam Smith, David Ricardo, J.M.Keynes, J.S. Mill.
Answer:
J. M. Keynes

Question 4.
Food, Medicines, Sunshine, Toothpaste
Answer:
Sunshine

Question 5.
Washing machine, AC – Car, Pressure Cooker, Geyser.
Answer:
AC – Car

Question 6.
Land, Interest, Labour, Entrepreneur
Answer:
Interest

Question 7.
National Income, National Output, Individual Income, Aggregate Supply.
Answer:
Individual Income

Question 8.
Investment, Want, Utility, Wealth.
Answer:
Investment

Question 9.
Rain, Air, Sunrays, Book.
Answer:
Book

Question 10.
Rent, Labour, Interest, Profit.
Answer:
Labour

1E. Complete the following statements:

Question 1.
Commodity which satisfies human wants is called __________
Answer:
Utility

Question 2.
Actual transfer of goods from one person to another is termed as __________
Answer:
Physical transfer

Question 3.
Income which is paid as per terms and condition is called as __________
Answer:
Contractual Income

Question 4.
Anything which has market value and can be exchanged for money is termed as __________
Answer:
Wealth

Question 5.
Adam Smith defines Economics as __________
Answer:
A Science of wealth

Question 6.
Scarcity oriented definition of economics was given by __________
Answer:
Lionel Robbins

Question 7.
Wealth oriented definition of economics was given by __________
Answer:
Prof. Alfred Marshall

Question 8.
Kautilya authored the Indian Political treatise called __________
Answer:
the ‘Arthashastra’

Question 9.
Paul Samuelson referred economics as __________
Answer:
“Queen of Social Science”

Question 10.
Psychology, Sociology, Political Science are the examples of __________
Answer:
Social Science/Abstract Science

Question 11.
Kautilya is also known by the name __________
Answer:
Chanakya or Vishnugupta

Question 12.
The term microeconomics and macroeconomics was coined by __________
Answer:
Sir Ragnar Frisch

1F. Choose the wrong pair:

Question 1.

Group ‘A’	Group ‘B’
1. Physics, Chemistry, etc	(a) Natural Science
2. Kautilya	(b) Arthshastra
3. Psychology, Sociology, etc	(c) Social Science
4. Prof. Alfred Marshall	(d) Father of Economics

Answer:
Wrong Pair: Prof. Alfred Marshall – Father of Economics

Question 2.

Group ‘A’	Group ‘B’
1. Alfred Marshall	(a) Welfare Oriented Definition
2. Lionel Robbins	(b) Scarcity Oriented Definition
3. Adam Smith	(c) Scarcity Oriented Definition
4. J. M. Keynes	(d) Modern School of Thought

Answer:
Wrong Pair: Adam Smith – Scarcity Oriented Definition

1G. Choose the correct pair:

Question 1.

Group ‘A’	Group ‘B’
1. Economic Wants	(a) Travelling by Bus
2. Non-Economic Wants	(b) Air, Sunshine, etc.
3. Individual Wants	(c) Food, Medicine, etc.
4. Collective Wants	(d) Doctor using Stethoscope

Options:
(a) 1 – d; 2 – c; 3 – a; 4 – b
(b) 1 – b; 2 – c; 3 – d; 4 – a
(c) 1 – c; 2 – b; 3 – d; 4 – a
(d) 1 – a; 2 – d; 3 – b; 4 – c
Answer:
(c) 1 – c; 2 – b; 3 – d; 4 – a

2. Identify and explain the concepts from the given illustrations:

Question 1.
Mangesh saves ₹ 200/- every month out of his pocket money.
Answer:
Savings.
Saving is a part of income, which is kept aside to meet future needs. In the above illustration, since Mangesh is foregoing his current consumption, it forms his part of savings.

Question 2.
People drink water when they are thirsty because water has the capacity to satisfy thirst.
Answer:
Utility.
The utility is a power of a commodity or service which satisfies human want. In this case, water has utility, as it satisfies the thirst of people.

Question 3.
A farmer sold 2 kg rice for ₹ 100/-
Answer:
Exchange.
It refers to the worth of a commodity or a service expressed in terms of a commodity. In the above case farmer exchanges rice i.e. commodity for cash.

Question 4.
₹ 45,000/- remained in the hands of Mr. Shah from his income, after paying tax.
Answer:
Personal Disposable Income.
It is that part of a personal income that is left over after the payment of direct taxes. In the above case, ₹ 45,000 forms part of Mr. Shah’s Personal Disposable Income, as it is leftover income after payment of his tax.

Question 5.
Raju’s mother purchased a blanket. It helps her to keep warm during winter.
Answer:
Necessity Want and Utility.
Want is referred to as a need of a person. Here, in the above case, the blanket is a need of Raju’s mother, which falls under necessity want.
The utility is a power of a commodity or service to satisfy human wants. Here, in the above case, the blanket provides utility to Raju’s mother by giving her warmth during winter.

Question 6.
Alka uses a washing machine to wash clothes.
Answer:
Comforts Want.
A commodity that provides comfort to our life is termed comfort goods. In the above case, the washing machine provides comfort to Alka, as she does not need to wash clothes with her hands anymore.

Question 7.
Sahil utilized his bank balance to start a fruit shop.
Answer:
Investment.
Investment refers to the creation of capital assets through the mobilization of savings. In the above case, Sahil mobilizes his bank savings into investment in a fruit shop.

Question 8.
National income estimates help to measure the economic performance of a country.
Answer:
Macro-economics.
Macroeconomics means studying the economy at a large or whole. It includes the study of total employment, total savings, total consumption, aggregate supply, aggregate demand, etc. In the above case, the study of the whole country’s income leads to the measurement of the economic performance of a country.

Question 9.
A carpenter makes furniture and earns wages.
Answer:
Labour.
Labour means any kind of physical or mental effort/exertion undergone during the process of production against a certain reward. In the above case, labour makes furniture and earns wages as a reward.

Question 10.
Tanvi goes to the office in an air-conditioned car.
Answer:
Luxury.
The commodity which satisfies the want of pleasure and enjoyment means luxury goods. In the above case, the air-conditioned car is treated as a luxury good.

3. Distinguish between:

Question 1.
Fixed Income and Fluctuating Income.
Answer:

Fixed Income	Fluctuating Income
(i) Income that is stable or remains the same over a period of time is called fixed income.	(i) Income that is unstable and keeps on changing is called fluctuating income.
(ii) Earnings of the landlord, labour, etc. are fixed income.	(ii) Earnings of businessmen, organisers, self-employed persons, etc. are fluctuating income.
(iii) It cannot be zero or negative.	(iii) It can be positive, negative, or zero.

Question 2.
Value-in-use and Value-in-exchange.
Answer:

Value-in-use	Value-in-exchange
(i) It refers to the usefulness of a commodity.	(i) It refers to the value of a commodity or a service expressed in terms of another commodity.
(ii) Value-in-use depends upon utility.	(ii) Value-in-exchange depends upon scarcity.
(iii) Free goods like water, air, sunshine, etc. have greater value in use but less value in exchange.	(iii) Economic goods like a diamond, gold, etc. have greater value-in-exchange but less value-in-use.

Question 3.
Contractual Income and Residual Income.
Answer:

Contractual Income	Residual Income
(i) When income is given as per the terms and conditions of the contract it is called contractual income.	(i) The income which is left over after making payment to other factors of production is called residual income.
(ii) Rent, Wages, etc. are examples of contractual income.	(ii) Profit is an example of residual income.
(iii) Contractual income is fixed and certain.	(iii) Residual income is fluctuating and uncertain.
(iv) It is neither zero nor negative.	(iv) It can be zero or even negative.

Question 4.
Money Income and Real Income.
Answer:

Money Income	Real Income
(i) Money income refers to income received in form of the currency of a country.	(i) Real income refers to the purchasing power of money income.
(ii) E.g. Income received in cash, ₹ 50,000/- per month.	(ii) E.g. Commodities purchased out of given income.
(iii) It is not influenced by a change in the price level.	(iii) It declines with a rise in the price level.

Question 5.
Land and Labour.
Answer:

Land	Labour
(i) Land is any natural resource, available above and below the surface of the earth.	(i) Labour is any physical or mental effort undergone during the production process to earn some remuneration.
(ii) Land is a natural factor of production.	(ii) Labour is a human factor of production.
(iii) Land earns ‘Rent’ as a factor reward.	(iii) Labour earns ‘Wages’ as a factor reward.
(iv) Land is a durable factor.	(iv) Labour is a perishable factor.

Question 6.
Land and Capital.
Answer:

Land	Capital
(i) Land is any natural resource available above and below the surface of the earth.	(i) Capital is a produced means for further production.
(ii) Land is a natural factor of production.	(ii) Capital is a man-made factor of production.
(iii) Land earns a reward in the form of ‘Rent’.	(iii) Capital earns a reward in the form of ‘Interest’.
(iv) In economics, minerals, soil, mountains, etc., are considered as land.	(iv) Machinery, factory building, tools, etc. are examples of capital.

Question 7.
Natural Sciences and Social Sciences.
Answer:

Natural Sciences	Social Sciences
(i) Natural Sciences are those sciences whose laws are universally acceptable.	(i) Social Sciences are those sciences whose laws are not universal. They are statements of general human tendencies.
(ii) Chemistry, Mathematics, Physics, etc. are examples of natural sciences.	(ii) Sociology, Psychology, Economics, etc. are examples of social sciences.
(iii) Natural sciences are also called exact sciences.	(iii) Social sciences are also called abstract or behavioural inexact sciences.
(iv) The validity of natural sciences can be tested in the laboratory.	(iv) The validity of social sciences cannot be tested in the laboratory.

Question 8.
Economic Growth and Economic Development.
Answer:

Economic Growth	Economic Development
(i) Economic growth refers to an increase in the real N.I. of the country over a long period of time.	(i) Economic development means economic growth plus progressive changes in the socio-economic structure which determine the well-being of the people.
(ii) It is a quantitative term.	(ii) It is a qualitative term.
(iii) It is a narrow concept.	(iii) It is a broad concept.
(iv) It is an automatic and natural process.	(iv) It is the result of purposeful and planned efforts.
(v) It is spontaneous and reversible.	(v) It is deliberate and irreversible.
(vi) Economic growth is related to the economic aspect only.	(vi) Economic development is related to economic, social, and political aspects.
(vii) It is uni-dimensional.	(vii) It is multi-dimensional.
(viii) Economic growth can be measured in terms of N.I. and per capita income.	(viii) Economic development is measured in terms of quality of human life, better infrastructure, political freedom, etc.
(ix) It is possible without economic development.	(ix) It is not possible without economic growth.

Question 9.
Labour and Entrepreneur.
Answer:

Labour	Entrepreneur
(i) Any physical or mental effort undergone during the production process to earn a reward is called labour.	(i) Entrepreneur is the organiser who coordinates all factors of production. He is regarded as a captain of the industry.
(ii) Labour earns ‘Wages’ as a factor reward.	(ii) Entrepreneur enjoys ‘Profit’ as a factor reward.
(iii) Earnings of labour are certain, fixed, and always positive.	(iii) Earnings of an entrepreneur are uncertain, fluctuating, and not always positive.

Question 10.
Economic Wants and Non-economic Wants.
Answer:

Economic Wants	Non-economic Wants
(i) Economic wants are those wants for which price has to be paid.	(i) Non-economic wants are those wants that can be satisfied without paying price.
(ii) Eg. a dress, a book, medicine, etc. satisfy economic wants.	(ii) Eg. rain, air, sun rays, etc. satisfy non-economic wants.
(iii) It is necessary to make monetary payments for them due to scarcity.	(iii) Monetary payment is not necessary, as they are available in plenty.

4. Answer the following:

Question 1.
Explain various factors of production.
Answer:
Production means the creation of utility.
There are four factors of production. They are land, labour, capital, and entrepreneur.
They are explained as follows:

(i) Land: In economics, the land is a wider concept. It is the primary, natural and original factor of production. According to Prof. Marshall, land means all natural resources, available on, above, and below the surface of the earth.
E.g. On the surface of the earth – mountains, rivers, forests, etc.
Above the surface of the earth – air, sunshine, etc.
Below the surface of the earth – gold, silver, coal, etc.
E.g. A landlord gets rent for the productive use of land.

(ii) Labour: Labour is a living factor of production. It is the most active and human factor of production. Any physical or mental effort undergone during the production process to earn a reward is called labour. The remuneration of labour is wages. E.g. a labourer working in a factory.

(iii) Capital: Capital refers to produced means of production. It is the stock of capital assets that yield income. Capital earns interest for its productive use. Capital is a man-made factor of production.
E.g. machinery, raw material, etc.

(iv) Entrepreneur: The entrepreneur is the organizer and the controller of a business. He combines all the factors of production. He supervises the production process. He is a special kind of labourer who gets rewarded in the form of profit. An entrepreneur is regarded as a real captain of the industry.

Question 2.
Write a note on Kautilya’s views on Economics.
Answer:
Kautilya was traditionally known as ‘Chanakya’ or ‘Vishnugupta’. He is identified as the pioneer in the field of Political Science and Economics in India.
He was a teacher, philosopher, economist, and royal advisor of the Mourya Empire.
He wrote the ancient Indian Political treatise named “Arthashastra”, where Artha’ means ‘Wealth’ and ‘Shastra’ means ‘Science’. It covers various aspects of the political, social, economic, and military organization of the past economy.

Key-points based on Kautilya’s views are as follows:

• The role of the State or Government is crucial. The state should regulate economic activities.
• He focused on creating wealth as a means, to ensure the welfare of the state.
• He stated a great need for efficient administrative machinery for good governance.
• Compilation of Political ideas into Arthashastra.
• Kautilya attached great significance to public finance.

Question 3.
Explain ‘Trade Cycle’ in economics.
Answer:
The Trade cycle is also called the ‘business cycle’. It takes place due to fluctuations in business.
There are ups and downs in overall economic activities. These fluctuations arise due to inflation and depression.
It can be explained with the help of the following diagram.

Inflation means a continuous rise in the general price. Depression is a continuous fall in overall prices and lowering down economic activities in general.
In the given diagram, the ‘X’-axis indicates the time period and the ‘Y’-axis shows the level of economic activity. Line ab shows a steady growth path.
Various phases of the business cycle or trade cycle like Prosperity, Recession, Depression, Recovery, and Inflation indicate fluctuations in economic activities.
When unemployment is created due to the trade cycle (cyclical fluctuation), it is called cyclical unemployment. It is temporary in nature.

5. State with reasons whether you agree or disagree with the following statements:

Question 1.
Profit is a contractual income.
Answer:
No, I do not agree with the statement.

• Contractual income is that income that is paid as per the terms and conditions of payment.
• Profit is not a contractual income.
• It is residual income because profit is the earning of an entrepreneur.
• It is the income that is left over after making payments to all factors of production.
• Profit may not be always positive.
• It can be zero or even negative.
• Thus, it is a fluctuating income.

Question 2.
The concepts of economic development and economic growth are interrelated but not the same.
Answer:
Yes, I agree with the statement.

• Economic development and economic growth go hand in hand. They are interrelated but they do not mean the same.
• Economic growth refers to an increase in a country’s real output of goods and services, whereas economic development refers to the progressive changes in the socio-economic structure of a country.
• Also, economic growth considers the quantitative aspect whereas economic development considers the qualitative aspect.
• Again, economic growth is possible without economic development but, economic development is not possible without economic growth.
• Hence, economic development is a wider term and economic growth is a part of it which makes them two different concepts.

Question 3.
An entrepreneur plays an important role in the economic development of a country.
Answer:
Yes, I agree with the statement.

• In the history of developed countries, it has been shown that entrepreneurs have played a very important role in economic development. Hence quality entrepreneurship is a crucial indicator of economic development.
• Economic development requires a class of talented entrepreneurs because they are the ones who keep the wheels of the economy moving.
• An entrepreneur is a person who has the ability to recognize business opportunities.
• He is a person with some special qualities such as the ability to innovate, do hard work, have the vision, risk-taking capacity, social responsibility, positive thinking, etc.

Question 4.
There is no difference between individual wants and collective wants.
Answer:
No, I do not agree with the statement.

• Individual wants refer to those wants which are satisfied at the individual level. While collective wants are those wants that are satisfied at the general level or macro level.
• A doctor using a stethoscope is an example of individual wants while people travelling by train or bus is an example of collective want.
• Thus, there is a difference between individual wants and collective wants.

Question 5.
Microeconomic and macroeconomic are two different phenomena.
Answer:
Yes, I agree with the statement.

• Microeconomics deals with the economic behaviour of small units while macroeconomics deals with the economic behaviour of large units.
• Microeconomics uses the slicing method while macroeconomics uses the lumping method.
• Microeconomics is based on partial equilibrium analysis, while macroeconomics is based on general equilibrium analysis.
• The microeconomic analysis is also called a “Price theory” while macroeconomic analysis is also called an “Income theory”.
• Thus, microeconomics and macroeconomics are two different phenomena.

6. Answer in detail:

Question 1.
Explain the basic concepts of microeconomics.
Answer:
“Micro Economics is the study of particular firms, particular households, individual prices, wages, incomes, individual industries, particular commodities”.

Basic Concepts of Micro Economics:
(i) Want: Want denotes a feeling of ‘lack of satisfaction. This feeling enables the individual to satisfy his want.
Characteristics of wants:

• Wants are unlimited.
• Wants are recurring in nature.
• Wants differ with age.
• Wants differ with gender.
• Wants differ due to preferences.
• Wants differ with seasons.
• Wants differ due to culture.

Classification of Wants:
Wants can be classified into.

• Economic and Non-economic want.
• Individual Wants and Collective wants.
• Necessities, Comforts, and Luxuries.

(ii) Goods and Services:
Anything that satisfies human wants is termed as a ‘good’ and has material existence while services also satisfy human wants but do not have any material existence.

(iii) Utility: Want satisfying power of a commodity is called utility.

(iv) Value: Value has two approaches in economics, i.e. ‘value-in-use and ‘value in exchange’.

• Value-in-use: It refers to the worth of a commodity or it is the usefulness of a commodity.
• Value-in-exchange: It refers to the worth of a commodity or a service expressed in terms of another commodity.

(v) Wealth: Wealth refers to “anything which has market value and can be exchanged for money.” A commodity must possess the following characteristics to be wealthy.

• Utility
• Scarcity
• Transferability
• Externality

(vi) Personal Income: Earnings received by a person from all sources is called his personal income.

(vii) Personal Disposable Income (PDI): It is that part of personal income which is left over after payment of direct taxes such as income tax, wealth tax, etc.

Question 2.
Explain the various types of income.
Answer:
Following are the various types of income.
(i) Fixed income: Income that remains stable over a period of time is called fixed income. It is always positive.
E.g. rent, wages, etc.

(ii) Fluctuating income: Income that is not fixed but keeps on changing is called Fluctuating income.
E.g. profit. It can be positive, negative, or zero.

(iii) Money income: Income received in the actual currency of the country is called Money income. It is the income in cash.
E.g. ₹ 70,000.

(iv) Real income: The purchasing power of money income is called Real income.
E.g. Commodities purchased out of money income.

(v) Contractual income: Income paid as per the terms and conditions of the contract is called Contractual income.
E.g. rent, wages, etc.

(vi) Residual income: Income that is left over after making payments to all factors of production is called residual income.
E.g. profit.

(vii) Earned income: Income obtained after participating in the productive activity is called Earned income.
E.g. rent, wages, interest, profit.

(viii) Unearned income: Income received from all sources without indulging in any productive activity is called Unearned income.
E.g. windfall gains, lottery prizes.

(ix) Economic activity: Economic activities can be classified into four types which include production, distribution, exchange, and consumption.

Balbharti Maharashtra State Board Class 11 Political Science Important Questions Chapter 10 The World Since 1945 – II Important Questions and Answers.

Maharashtra State Board 11th Political Science Important Questions Chapter 10 The World Since 1945 – II

1A. Choose the correct alternative and complete the following statements.

Question 1.
The first NAM summit was held at ____________ (Bangkok, Camp David, Bandung, Belgrade)
Answer:
Belgrade

Question 2.
During the Cold War, western capitalist economies, aligned to the USA were called as ____________ countries. (First World, Second World, Third World, Non-Aligned)
Answer:
First World

Question 3.
The beginning of detente was 1972, summit meeting at ____________ (New York, Camp David, Moscow, China)
Answer:
Moscow

Question 4.
In 1978, the conference at Camp David was to reduce tensions between ____________ (USA – USSR, USA – China, Arab World – Israel, India – Pakistan)
Answer:
Arab World – Israel

Question 5.
The SAARC was established in ____________ (1967, 1985, 1992, 1989)
Answer:
1985

Question 6.
Iran withdrew from the ____________ military alliance in 1979. (CENTO, SEATO, NATO, NAM)
Answer:
CENTO

Question 7.
In 1991, Commonwealth of Independent States was created after the disintegration of the ____________ (USA, USSR, Germany, CENTO)
Answer:
USSR

Question 8.
____________ tried to reform the system in the USSR. (Khruschev, Breznev, Yeltsin, Gorbachev)
Answer:
Gorbachev

1B. Identify the incorrect pair in every set, correct it and rewrite.

Question 1.
(a) Soviet Union – Brezhnev
(b) Egypt – Nasser
(c) Czechoslovakia – Tito
Answer:
(c) Yugoslavia – Tito

Question 2.
(a) SAARC – Maldives
(b) BRICS – Brazil
(c) NAM – USA
Answer:
(c) Capitalist bloc – USA

1C. State the appropriate concept for the given statement.

Question 1.
Reduction of tensions and conflicts.
Answer:
Detente

Question 2.
Principle of active participation in world affairs peacefully and without joining any military alliances.
Answer:
Non-alignment

Question 3.
The collective name for developing countries.
Answer:
Third World countries

Question 4.
Agreement signed in 1978 at Camp David.
Answer:
‘Framework for Peace for Middle East

Question 5.
Special agreements regarding economic relationships are made by a group of nations.
Answer:
Trade Bloc

Question 6.
The term used to indicate “openness” i.e., freedom of expression.
Answer:
Glasnost

1D. Answer in one sentence.

Question 1.
Which was the first direct confrontation between the USA and USSR during the Cold War?
Answer:
The first direct confrontation between the USA and USSR during the Cold War was the Cuban Missile Crisis.

Question 2.
Which nations were referred to as Second World during the Cold War?
Answer:
Eastern Socialist economies aligned with the Soviet Union were referred to as ‘Second World’ during the Cold War.

Question 3.
When and where was the first NAM summit held?
Answer:
The first NAM summit was held in 1961 at Belgrade (Yugoslavia).

Question 4.
Which was the joint (US – USSR) Space flight in 1975?
Answer:
The Apollo- Soyuz space flight, was the joint (US – USSR) space fight in 1975.

Question 5.
Who signed the agreement at Camp David in 1978?
Answer:
Egyptian President Anwar el Sadat and Israeli Prime Minister Menachem Begin in the presence of US President Jimmy Carter signed the agreement at Camp David in 1978.

Question 6.
What are the common types of trade barriers?
Answer:
Tariffs and quotas are the common types of trade barriers.

Question 7.
Where is the SAARC Secretariat?
Answer:
The SAARC Secretariat is at Kathmandu (Nepal).

Question 8.
What do trade agreements generally focus on?
Answer:
Trade agreements generally focus on relaxation or even the elimination of trade barriers.

Question 9.
Who initiated the Islamic Revolution in Iran (1979)?
Answer:
Ayatollah Khomeini initiated the Islamic Revolution in Iran(1979).

Question 10.
What is described as New Cold War?
Answer:
The detente between the USA and USSR gradually ended in 1979 and this period is described as New Cold War.

Question 11.
Name the two policies advocated by Gorbachev.
Answer:
Glasnost and Perestroika are the two policies advocated by Gorbachev.

Question 12.
Name the countries where East European revolutions took place in 1989-1990?
Answer:
Poland, Bulgaria, Romania, Czechoslovakia, Hungary had revolutions in the period 1989-1990.

Question 13.
What caused the Cold War to come to an end?
Answer:
The disintegration of the USSR in 1991 caused the Cold War to come to an end.

Question 14.
Name the countries created due to the splitting up of Yugoslavia.
Answer:
Bosnia, Croatia, Herzegovina, Montenegro, Serbia were created due to the splitting up of Yugoslavia.

Question 15.
Name the two countries formed due to the splitting of Czechoslovakia.
Answer:
Slovakia and the Czech Republic were the two countries formed due to the splitting up of Czechoslovakia.

1E. Complete the sentences by selecting the appropriate reason.

Question 1.
The non-Aligned Movement was established in 1961 because
(a) some countries like India, Egypt, etc. wanted to form their own power bloc.
(b) it was a regional organization of newly independent nations.
(c) it consisted of countries that did not want to align to any power bloc or join any military alliance.
Answer:
(c) it consisted of countries that did not want to align to any power bloc or join any military alliance.

Question 2.
The Cuban Missile Crisis laid the foundations of detente as it
(a) led to an escalation of cold war tensions.
(b) led to an immediate pileup of nuclear missiles.
(c) brought in a realization of possible nuclear confrontation and the need to reduce tensions.
Answer:
(c) brought in a realization of possible nuclear confrontation and the need to reduce tensions.

1F. Find the odd word in the given set.

Question 1.
Nkrumah, Sukarno, Nasser, Nixon.
Answer:
Nixon (not a NAM leader)

Question 2.
Vietnam, Korea, Sri Lanka, Cuba.
Answer:
Sri Lanka (not affected by Cold War)

Question 3.
Mao Zedong, Khrushchev, Gorbachev, Brezhnev.
Answer:
Mao Zedong (Chinese leader)

Question 4.
ASEAN, NAFTA, SAARC, EU.
Answer:
NAFTA (trade agreement not an organization)

1G. Expand the abbreviations.

Question 1.

1. SAARC
2. ASEAN
3. OPEC
4. NIEO
5. NAFTA
6. OAS
7. WTO

Answer:

1. SAARC – South Asian Association for Regional Cooperation.
2. ASEAN – Association of South-East Asian Nations
3. OPEC – Organisation of the Petroleum Exporting Countries
4. NIEO – New International Economic Order
5. NAFTA – North American Free Trade Agreement.
6. OAS – Organisation of American States.
7. WTO – World Trade Organisation.

1H. Arrange in a chronological order citing the appropriate dates per event.

Question 1.

1. Cuban Missile Crisis
2. Arab-Israel War
3. Apollo-Soyuz Space Flight
4. Founding of SAARC
5. Founding of NAM
6. Founding of ASEAN
7. Soviet Invasion of Afghanistan
8. Disintegration of USSR
9. Formation of EU
10. Formation of WTO

Answer:

1. Founding of NAM – 1961
2. Cuban Missile Crisis – 1962
3. Founding of ASEAN – 1967
4. Arab – Israel War – 1973
5. Apollo-Soyuz Space Flight – 1975
6. Soviet invasion of Afghanistan – 1979
7. Founding of SAARC – 1985
8. The disintegration of USSR – 1991
9. Formation of EU – 1992
10. Formation of WTO – 1995

2A. State whether the following statements are true or false with reasons.

Question 1.
In 1962, the USA established a naval blockade around Cuba.
Answer:
This statement is True.

• In 1962, Nikita Khrushchev of the USSR decided to make Cuba into a Russian base by placing nuclear missiles there.
• This would be a direct threat and so the USA retaliated with a naval blockade of Cuba.

Question 2.
The Non-Aligned Movement had great significance.
Answer:
This statement is True.

• After the Second World War, the two superpowers i.e., the USA and USSR, had begun the Cold War which led to many military alliances being created.
• Many Third World countries, which had recently gained freedom from colonial rule, did not want to ally with any power bloc. So in 1961, the NAM was formally established at Belgrade by heads of India, Yugoslavia, Egypt, Ghana, Indonesia, etc.

Question 3.
Non-Alignment means the country is internationally passive.
Answer:
This statement is False.

• Nonalignment means that a member country should not be a member of any military alliance in the context of the Cold War.
• It does not mean passivity or neutrality in international politics but means that members actively participate in world affairs to promote security, peace, and development.

Question 4.
The Moscow Summit led to an escalation of the Cold War.
Answer:
This statement is False.

• In 1972, President Nixon (USA) and General Secretary of the Communist Party of Soviet Union. Brezhnev met at Moscow.
• The summit signaled the beginning of the era of detente i.e. USA and USSR tried to reduce tensions of the Cold War

Question 5.
Mikhail Gorbachev as president of the USSR changed the course of world politics.
Answer:
This statement is True.

• Gorbachev introduced the policies of ‘Perestroika’ (reconstruction of the Soviet political and economic system) and ‘Glasnost’ (openness).
• During his tenure, there were popular uprisings against Communist regimes in East European countries like Poland, Bulgaria, Czechoslovakia, etc.
• The USSR ceased to exist and in its place, 15 new countries (CIS) were created (1991).

Question 6.
Post-1991 can be called ‘the Era of Multi polarity’.
Answer:
This statement is True.

• After the collapse of the USSR, the USA remained the only superpower due to its military, technological and economic might.
• However, many regional or economic organizations such as OPEC, European Union, G-8, G-20, SAARC, ASEAN, African Union, BRICS, etc. also play a vital role in world politics and international relations.

2B. Complete the concept maps.

Question 1.

Answer:

Question 2.

Answer:

2C. Observe the given map and answer the following questions.

Question 1.
Map of East Europe today.

Question i.
Name some countries bordering the Adriatic sea.
Answer:
Italy, Croatia, Albania, Greece, Slovenia.

Question ii.
Write the neighbouring countries of Poland.
Answer:
Czech Republic, Ukraine, Germany, Belarus.

3. Answer the following.

Question 1.
Write about the US naval blockade in 1962.
Answer:
A naval blockade is prohibiting ships from entering the port of a country. This is done by using the Navy, The United States Navy established a blockade around the island to prevent any offensive weapons from entering Cuba. This was done in retaliation to the USSR using Cuba as a strategic missile base.

Question 2.
Write about the Cuban Missile Crisis.
Answer:
In spite of attempts to create goodwill between the two power blocs (such as at Camp David Summit), tensions continued to escalate. In 1962, the first direct confrontation of the Cold War took place. This was the Cuban Missile Crisis. Cuba is a small nation off the coast of the USA. It had the support of the USSR. Due to its’ strategic location, then Soviet Premier, Khrushchev, decided to convert Cuba into a Soviet base by placing nuclear missiles there. This was a serious, direct threat to the USA which retaliated with a naval blockade of Cuba. There was a real possibility of a nuclear war. But, both superpowers realized the need to prevent such a situation and USSR withdrew its missiles from Cuba.

Question 3.
Explain Non-Alignment.
Answer:
A group of Third World countries (i.e., from Asia, Africa, South America), most of whom had recently gained sovereignty from colonial rule, refused to join any Cold War alliances. This laid the foundation for the Non- Aligned Movement. Which was formally established at the Belgrade Conference (1961) with 25 member nations. Some of the founding members were Marshall Tito (Yugoslavia) Jawaharlal Nehru, (India), Gamal Nasser (Egypt), Nkrumah (Ghana), Sukarno (Indonesia).

The concept of Non-alignment is based on two main principles:

• independent understanding of world affairs
• peace approach.

Thus it does not mean political passivity or neutrality. In fact, the idea was active participation in world affairs to promote peace and development.

The purposes of NAM were

• not to ally with any power bloc
• opposition to any military alliance
• freedom to take independent policy decisions with regard to international affairs.

Question 4.
What were the consequences of the collapse of the USSR?
Answer:
The consequences of the collapse of the USSR included-
The Commonwealth of Independent States came (CIS) into existence and finally, new countries were formed such as Ukraine, Belarus, Georgia, Armenia, etc.
Other changes due to the disintegration of the Soviet Union included:

• reunification of Germany in 1990.
• splitting Yugoslavia into Serbia, Bosnia, Croatia, Slovenia, etc.
• splitting of Czechoslovakia into the Czech Republic and Slovakia.

The disintegration of the USSR signified the end of the Cold War and the USA emerged as the only superpower (unipolarity).

Question 5.
Write about the policies of Gorbachev.
Answer:
There were significant changes in Soviet policy under Mikhail Gorbachev (President of USSR). He introduced the policies of Glasnost (openness i.e., transparency in governance and freedom of expression) and Perestroika (reconstruction of the political and economic system).

His new foreign policy included:

• withdrawal of Soviet troops from Afghanistan
• stopping of the arms race with the US and focused on arms control
• opening a dialogue with China.

Gorbachev also tried to reform domestic politics. Control of the Communist Party ended and people were given the right to criticize the government. On 25th December 1991, Gorbachev resigned and the next day the USSR as a country ceased to exist. This led to the Commonwealth of Independent States is established.

Question 6.
Write about the objectives of SAARC.
Answer:
South Asian Association for Regional Cooperation (SAARC) was established in 1985.
The objectives of SAARC are

• to promote the welfare of the people of South Asia and to improve their quality of life.
• to accelerate economic growth, social progress, and cultural development in the region.
• to contribute to mutual trust, understanding, and appreciation of one another’s problems.
• to promote active collaboration and mutual assistance in the economic, social, cultural, technical, and scientific fields and to strengthen cooperation with other developing countries.

Question 7.
Write about CIS (1991)
Answer:
Commonwealth of Independent state (CIS) was created after the disintegration of the Soviet Union in 1991. The members were the former states of the USSR. The founder members were Russia, Ukraine, and Belarus. Subsequent members were Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.

Common affairs were conducted on a multilateral, interstate basis. It provided a framework for military, foreign policy, and economic cooperation between members.

Question 8.
Make a list of countries that were created after the disintegration of the Soviet Union.
Answer:
After the disintegration of the Soviet Union (1991) many countries like Russia, Ukraine, Belarus, Armenia, Azerbaijan, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Tajikistan, Turkmenistan, and Uzbekistan were created.

Question 9.
List the Non-Aligned Summits that have occurred since 1961.
Answer:

Summit year	Place
1st – 1961	Belgrade (Yugoslavia)
2nd – 1964	Cairo
3rd – 1970	Lusaka (Zambia)
4th – 1973	Algiers (Algeria)
5th – 1976	Colombo (Sri Lanka)
6th – 1979	Havana (Cuba)
7th – 1983	New Delhi (India)
8th – 1986	Harare (Zimbabwe)
9th – 1989	Belgrade (Yugoslavia)
10th – 1992	Jakarta (Indonesia)
11th – 1995	Cartagena (Colombia)
12th – 1998	Durban (S. Africa)
13th – 2003	Kuala Lampur (Malaysia)
14th – 2006	Havana (Cuba)
15th – 2009	Egypt
16th – 2012	Tehran (Iran)
17th – 2016	Porlamar (Venezuela)
18th – 2019	Baku (Azerbaijan)