Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Balbharti Maharashtra State Board Class 12 Geography Solutions Chapter 7 Region and Regional Development Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

1. Identify the correct group.

Question 1.

A B C D
Satpuda Yavatmal Thar Marathwada
Deccan Amravati Sahara Khandesh
Alps Solapur Himalaya Vidarbha
Rockies Greater Mumbai Gobi Konkan

Answer:
D

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.

A B C D
Plain Pressure Tropical forest Fishing
Lake Rivers Thorny forest Lumbering
Mountain Temperature Mangrove forest Agriculture
Plateau Humidity Deciduous forest Bakery

Answer:
C

2. Differentiate between.

Question 1.
Functional region and Formal region
Answer:

Functional region Formal region
(i) Specific to one area. (i) Often physical in nature.
(ii) Areas organised around a node or focus one point like university, airport, etc. (ii) Has specific boundaries that set them apart.
(iii) This region has no common characteristics but functions are more important, functions bind regions together. (iii) This region has some common characteristics such as common economic activity or common language.
(iv) Often a metropolitan area that consists of major city and lot of smaller towns. (iv) Homogeneous areas or habitats inhabited by social groups, societies or nation.
(v) The region is tied to a central point by transportation system or economic or functional associations. (v) Organised and represented by small systems or part systems.
(vi) It functions and works together to form a part of an economic and social system. (vi) Has clear-cut political boundaries.
(vii) Defined by a set of activities. (vii) Defined by common political units where all people are subject to same law and government.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.
Physical and Political region
Answer:

Physical region Political region
(i) Physical region is an area of land divided by natural borders. (i) Political region tends to be based on political units such as sovereign states like administrative region, province, states, township, etc.
(ii) For example, interior plains of USA with borders of Appalachian Mountains in the east and Rocky Mountains in the west. (ii) For example, USA, State of Maharashtra, etc.
(iii) Physical regions are natural regions. (iii) Political regions are man-made regions.
(iv) Physical regions are almost unchanged regions. (iv) Political regions are not permanent regions.

3. Write short notes on.

Question 1.
Factors affecting regional development.
Answer:
The physical factors like relief, climate, location, population and land use of the region affects the regional development.

Regional development occurs near areas with favourable location, plain relief, sufficient rainfall, developed agriculture, transportation, industries and trade. For example, Asian countries have developed agriculture and trade of agricultural goods. USA has developed industries and trade.

There is poor development of economic activities in areas with unfavourable relief like mountains or hills and extreme climate. For example, in the northern part of Russia, economic development is poor due to extreme cold climate.

Location of the region is an important factor. If there is a long and broken coastline, then there is development of ports and thus development of trade and economy. For example, Japan has economically developed in spite of limited natural resources, due to development of trade.

On the other hand, landlocked countries remain isolated. They cannot develop trade due to absence of coastline. Such countries have poor economic development. For example, Afghanistan, Nepal.

The economic development in any region depends upon the quantity and quality of its people.

Where more suitable land is available, different economic activities are developed. For example, cities use land for various purposes such as industries, education, entertainment, transport, commerce, etc. Therefore, cities have economic development.

Hence, physical factors are said to affect the economic development of the region.

Question 2.
Measures to reduce regional imbalance.
Answer:

  • The following measures along with numerous policies are considered by the government to reduce regional imbalance.
  • The underdeveloped regions are identified and its economic, physical and social reasons for the non-development are studied.
  • Regions which require monetary support in a particular sector or field are funded through sector-wise investments to improve the conditions.
  • Subsidies are given to certain sectors. Investment is made for improvements of roads, schools, agriculture, irrigation, industries, housing, medical and health facilities, etc.
  • Special attention is given to areas facing problems such as frequent droughts, deserts or hilly and tribal-dominated areas.
  • The very important strategy to reduce regional imbalances is decentralisation of industries.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

4. Give geographical reasons.

Question 1.
Regional development is dependent on physical setting.
Answer:

  • The physical factors like relief, climate and location of the region affect the regional development.
  • Regional development occurs where agriculture, agro-based industries and trade is developed in areas where there is plain relief and sufficient rainfall. For example, Asian countries have developed agriculture and trade of agricultural goods.
  • Plain relief and sufficient rainfall encourage development of transportation and industries.
  • There is poor development of economic activities in areas with unfavourable relief like mountains or hills and extreme climate. For example, in the northern part of Russia, economic development is poor due to extreme cold climate.
  • Location of the country is an important factor. If there is a long and broken coastline, then there is development of trade and economy. For example, Japan has economically developed in spite of limited natural resources, due to the development of trade.
  • On the other hand, landlocked countries remain isolated. They cannot develop trade due to absence of coastline. Such countries have poor economic development. For example, Afghanistan, Nepal.
  • Thus, there is relationship between regional development and physical factors and therefore, we can say the regional development depends on physical factors.

Question 2.
Factors like literacy, poverty affect the regional development.
Answer:

  • Literacy and poverty are the important factors affecting the regional development.
  • High literacy rate determines the quality of human population. This increases the availability of employment opportunities and development of resources, which contributes to the economic growth and regional development.
  • Due to high literacy rate, the population growth is controlled and resources are shared among less people in the country.
  • However, poverty decreases the purchasing powers resulting in a decline in the demand for goods, which reduces the production and drops the economic development and GDP of a country.
  • Hence, poverty and literacy affect regional development.

Question 3.
Development is not seen in the Himalayan region.
Answer:

  • Relief and climate are the most important factors affecting the development of any region.
  • The Himalayan region has high mountains with a steep slope. The climate is cold and the mountains are covered with snow. There is heavy soil erosion and hardly plain land, so agriculture is not developed.
  • In this mountainous region, it is difficult and expensive to develop transportation facilities. Hence, there is poor development of industries.
  • Since all above factors are neither suitable for agricultural, industrial or trade development is not seen in the Himalayan region.

5. Answer the following questions in detail.

Question 1.
What is a region?
Answer:

  • A region is an area of a country or any part of the world having common features. Thus, there is a difference between two regions on the basis of its features.
  • The common features may be physical (relief, climate, soil, natural vegetation, etc.), socio¬cultural factors (language, religion, etc.), man-made like political features (administrative or political boundaries).
  • Regions may be small or large. The large regions include sub-regions. For example, the plateau region of India has various sub-regions such as Chota Nagpur plateau, Malwa plateau, Marwar plateau, Deccan plateau, etc.

The main characteristics of regions are :

  • Regions have its geographical location mentioned in latitudes and longitude.
  • Every region has a specific boundary, the area of another region starts beyond that boundary.
  • The extent of a region depends upon the homogeneity of a region.
  • There are sub-regions in one region and therefore regions can be arranged into different orders on the basis of same features.

There are two types of regions – formal and functional regions.
1. A formal region is also known as uniform region or homogeneous region. It is an area in which everyone shares in common one or more distinctive characteristics. It can be common physical characteristic such as relief or climate of the region. It can be socio-cultural or economic activity such as common language. For example, rice producing regions.

2. In some formal regions, there are boundaries. Thus, district, state or country may be formal region. For example, USA and Canada are the examples of formal regions.

3. In functional regions characteristics are not important but functions are more important.

4. In one functional region, there may be many political or physical regions but due to one common function it is said to be functional. For example, Mumbai metropolitan or Pune metropolitan regions.

5. Functional regions act as a focal point that connects surrounding areas by transportation and communication. For example, Mumbai metropolitan city is well connected with its surrounding areas through transportation.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.
On what factors are the regions differentiated? Give examples.
Answer:
A region is an area of a country or any part of the world with same common features. Thus, regions are differentiated on the basis of physical or man-made or socio-cultural factors.

For example, Chota Nagpur plateau region has plateau relief. Himalayan mountain region has mountainous relief. The desert region of Rajasthan has shortage of rainfall and very high temperature. Northern plain region has plain relief, fertile soil and moderate climate.

The region may be differentiated on the basis of man-made factors like political factors such as administrative boundaries or political boundaries. For example, Uttar Pradesh and Punjab are two different regions because they have different political boundaries and government bodies.

The region may be differentiated on the basis of socio-cultural factors such as language, religion or ethnicity. For example, in Mumbai there is an area, where people speaking Gujarati language live in one region. The Middle East countries form one region where people of Muslim religion stay together.

Thus, regions are differentiated on the basis of various factors.

Question 3.
Per capita income is not the real indicator of regional development. Explain.
Answer:

  • The per capita income is the income of per person in the country or region. It is the ratio between the country’s national income and total population.
  • Per capital income is an index of development because more the per capita income, higher the standard of living of people. But it is not always true.
  • The per capita income gives an idea about the average income of people in the country but it does not explain how income is distributed among the people. Some people may be rich and some may be below the poverty line.
  • The per capita income is related to only economic aspect of the country but it does not take into account literacy rate, health, sex ratio, age structure, life expectancy etc.
  • Sometimes rise in per capita income is due to increase in prices of commodities.
  • If the population is low the per capita income will be high, but the regional development will be slow, because such regions have shortage of skilled labour supply for further development. Therefore, we can say that the per capita income is not the real indication of regional development.

6. Find the correlation between land under permanent crops and GDP given in the table 7.5 using Spearman’s Rank Correlation. Write the conclusion in your own words.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 1
Answer:
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 2
X<sub>1</sub> = Land under permanent crops
Y<sub>1</sub> = GDP
R<sub>1</sub> = Rank – 1, R<sub>2</sub> = Rank – 2, n = 12 (No. of pairs)
Rank correlation R = 1 – \(\frac {6Σ(R_1-R_2)^2}{n(n^2-1)}\)
= 1 – \(\frac {6×118}{12(144-1)}\)
= 1 – \(\frac {708}{1716}\)
= 1 – 0.412
= 0.588
= 0.59
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 3
The answer of correction between (1) Land under permanent crops (2) GDP is 0.59 or +0.59 which means there is a positive correlation between these two variables.

It is not perfect positive correlation (+1.0). It is slightly less than this i.e. (+0.59).

It means when the amount of land under permanent crops is more, GDP is also more and when the amount of land under permanent crops is less, GDP is also less.

This is because the production of crops contributes to the growth of GDP.

The answer 0.59 suggests that this is not true for all countries as there are other factors, activities, products which are responsible for the growth of GDP other than the production of crops.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Class 12 Geography Chapter 7 Region and Regional Development Intext Questions and Answers

Try this

Question 1.
Given below are some geographical areas. Complete the table thinking about similarities between them and their types. Answer the questions that follow: (Textbook Page No. 66)
(i) While completing the above table how did you decide the common factor between these areas?
(ii) How did you differentiate one area from another?
(iii) Is the common factor the only basis of differentiation?
(iv) Make a list of characteristics which can be the basis of different area.
Answer:

Common factors / characteristics Types (political / physical)
Ganga river basin, Amazon river basin, Mississippi river basin, Nile river basin River Physical
The Himalayan region, The Alps, The Western Ghats, The Rockies, The Caucasus Mountain Physical
Marathwada, Vidarbha, Khandesh, Konkan, Western Maharashtra Administrative Political
The Thar Desert, The Arabian Desert, The Gobi Desert, The Sahar Desert Desert Physical
Rajasthan, Madhya Pradesh, West Bengal, Kerala, Manipur Administrative States Political
Pune, Bhopal, New York, Manchester, Munich, Shanghai Cities Political
Parbhani, Nagpur, Palghar, Kolhapur, Solapur Administrative Districts Political
Hindi-speaking belt, Bengali-speaking belt, Marathi-speaking belt, Kannada-speaking belt, Urdu-speaking belt Language Political (Linguistic)
Delhi University, Punjab University, Mumbai University, Banasthali University Campus Education Social

(i) We decide on the basis of the function of each geographical area.
(ii) We differentiate one area from another on the basis of the type of physical, socio- cultural and political nature of the geographical areas.
(iii) Yes, the common factor is the only basis of differentiation.
(iv) Common basis is physical characteristics like river, desert, mountains, climate, soil, natural vegetation etc., and political characteristics like states, districts and cities and cultural characteristics like language, education, etc.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.
Here is the list of regions. Classify them into formal and functional regions. (Textbook Page No. 68)
Ujani Dam catchment area, area served by Pune Municipal Transport (PMT), area served by Citi Cable Service, Uttar Pradesh, District Kolhapur, Taluka Haveli, rice producing region of Konkan, Black cotton soil region of India, areas served by local trains of Mumbai, area served by a Primary Health Centre
Answer:

Formal Regions Functional Regions
(i) Uttar Pradesh Ujani Dam catchment area
(ii) District Kolhapur Area served by Pune Municipal Transport (PMT)
(iii) Taluka Haveli Area served by Citi Cable Service
(iv) Rice producing region of Konkan Area served by local trains of Mumbai
(v) Black cotton soil region of India Area served by a Primary Health Centre

Question 3.
In the following table, regions are given. At the same time, some geographical factors and effects are also given. Complete the table 7.3 accordingly, with the help of solved examples. (Textbook Page No. 69 & 70)
Answer:

Region Geographical factors Effects on the region
Nile River basin Deep and fertile soil, Sufficient water supply by river, Gently sloping land Agricultural Development, Development of Industries, Hydro-electricity project, Irrigation etc.
Canada, Norway, Sweden, Finland and Northern part of Russia Coniferous forest areas. Lumbering, Paper and pulp Industry, Furniture manufacturing industry, Saw mills, Deforestation, Landslides Flooding
Japan Island location, Low mineral resources, Narrow geographical extent Fishing, Development of trade, Industrial development, Hydel power projects
Indonesia Malaysia Fertile volcanic soil, Beautiful scenery Agricultural development, Trade, Tourism

Question 4.
Look at the land use of the following regions in Table 7.5 and answer the questions that follow: (Textbook Page No. 72)
(i) What does the table show?
(ii) Which region has the highest land use under agriculture?
(iii) Which region has the highest GDP?
(iv) Which country (region) has more land use under forest?
(v) Which region has the highest land use under category ‘other land’? What’s its GDP?
(vi) Write your conclusion in few sentences.
Answer:
(i) The table shows land use in different regions.
(ii) The region C has the highest land use under agriculture.
(iii) The region I has the highest GDP.
(iv) The country (region) K has more land use under forest.
(iv) The region G has the highest land use under category ‘other land’. Its GDP is 1391.5 billion dollars.
(v) The region I is having highest GDP in which there is 50% arable land, it means agriculture must be major activity.

The region A is having lowest GDP where land under permanent meadows and pastures is highest. It means there is limited development of agricultural activities.

It is surprising, region F where arable land is highest in percentage even then GDP is comparatively low, because the land under permanent crop is very less.

In region K, GDP is 5747.49 and land under forest is 66%. It must be because the development of lumbering activities and forest-based industries is greater.

The region G has the highest area under other land use (95.6%) and GDP 1391.25. This region must have developed activities other than agriculture and forestry.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Use your brain power!

Question 1.
Can you tell what the identifying characteristic in the following regions?
(i) Pune Metropolitan Region
(ii) Nagpur hub
(iii) Dal Lake in Srinagar
(iv) Alleppey tourism centre
Answer:
(i) Pune Metropolitan Region – Functional region – Administration
(ii) Nagpur hub – Functional region – Industrial complex
(iii) Dal Lake in Srinagar – Functional region – Tourism
(iv) Alleppey tourism centre – Functional region – Tourism

Question 2.
(i) Identify your formal region.
(ii) Can you identify and demarcate your own functional region?
(iii) Which one is larger? (Textbook Page No. 68)
Answer:
(i) Maharashtra State
(ii) Yes, I can identify my functional region as government milk centre or D-mart departmental store.
(iii) Area served by D-mart departmental store is larger than the government milk centre.

Can you tell?

Question 1.
Read the table and answer the questions that follow. (Textbook Page No. 69)
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 4
(i) In which region do you think there are more resources available?
(ii) In which region do you think people are richer?
(iii) In which region do you think people may be happier? Why?
(iv) Do you think the given indicators or factors are enough to decide the standard of living of the people in the region?
(v) In which region would you like to stay? Why?
Answer:
(i) I think in region A more resources are available.
(ii) I think in region A people are richer.
(iii) People may be happier in region A because of higher per capita income, less population below poverty line, more urbanisation, more net sown area under irrigation.
(iv) I do not think the given indicator or factors are enough to decide the standard of living because other important factors like literacy rate, enrolment ratio / dropout ratio, sex ratio, crime rate etc., are not taken into consideration
(v) I will like to stay in region A because in this region per capita income is high, population below poverty line is low, percentage of urbanisation is highest, net sown and irrigated area is highest.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.
(i) Looking at the five stages of demographic transition theory, countries in which stage do you think, will be called developed?
(ii) Having looked at the various shapes of pyramids, which pyramid will represent a developed country? (Fig 2.1, Textbook Page No. 12)
(iii) After having answered both the questions above, what can you comment upon the role of population in regional development? (Textbook Page No. 70)
Answer:
(i) Countries in stage 4 and 5 will be called developed for e.g., USA, Sweden, Finland.
(ii) The pyramid (C) will represent a developed country.
(iii) The role of population in the regional development of any country is very important as man is a human resource. Quality of human resources is very important, which depends upon birth rate, death rate, expectancy of life, literacy ratio, male female ratio, mortality rate, etc.

A country having to qualitatively better population will help in the regional development of that country. For example, qualitatively population of the USA is better than population of India and hence, in USA there is better regional development than India.

Think about it

Question 1.
(i) Does development mean maximum utilisation of resources?
(ii) Does development consider environment as an indicator?
(iii) Can a region be called developed if it has sparse population or no population? (Textbook Page No. 69)
Answer:
(i) Development does not mean maximum utilisation of resources. Development of a region is the function of its resources and its population. There are many factors which affect the development of a region. For the holistic development of regions, skilled human resources and optimum utilisation of natural resources is necessary.

(ii) We must consider the environment as an indicator of development. Development at the cost of the environment is not real development. Since we ignore the environment while developing economy in the past 50 years, we are now suffering by many environment problems like global warming, etc.

(iii) Population is one of the most important factors in development. If there is sparse population or no population, then there will be shortage of man-power and resources will remain unutilized and therefore, quantity and quality of human resources is very important in the process of development.

Give it try

Question 1.
Draw a conclusion on the basis of the data given in table 7.4. Use Spearman’s Rank Correlation, find the correlation between the two variables. What can you comment about the development in this region? (Textbook Page No. 71)
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 5
Answer:
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 6
X<sub>1</sub> Percentage of malnourished children about to enter school.
Y<sub>1</sub> Government expenditure on education (% of total budget)
R<sub>1</sub> = Rank – 1, R<sub>2</sub> = Rank – 2, n = 8
Rank correlation R = 1 – \(\frac {6Σ(R_1-R_2)^2}{n(n^2-1)}\)
= 1 – \(\frac {6×104}{8(64-1)}\)
= 1 – \(\frac {624}{8(63)}\)
= 1 – \(\frac {624}{504}\)
= 1 – 1.24
= -0.24

The correlation between the percentage of malnourished children about to enter school and government expenditure on education is -0.24.
This value is very near to zero, which means no correlation. Hence, it is very slightly a negative correlation.
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 7

It means where the percentage of malnourished children about to enter school is more, the government expenditure on education is less e.g., in E region percentage of children is 31.7% but the expenditure is 4.09% and in C region percentage of children is only 3.4% but the expenditure is 7.10% (highest).

Considering the fact, we cannot consider this as well developed. There is no logical sequence in distribution of government expenditure on education. It is necessary that government authorities should take into consideration actual status of the region, need of the region before releasing grant to that region. This will surely help in proper allocation of the funds and overall development of the region.

Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development

Question 2.
Go through the fig. 7.2 and write two sentences on each factor. Tell how they will help in reducing regional imbalance. Also add some more to the list, if necessary. (Textbook Page No. 73)
Answer:
No country, in the world is having uniform regional development and thus, there is regional imbalance in development. Hence, a country must have a regional imbalance reduction strategy. Regional imbalance can be reverted through provision of public/services to backward areas by providing drinking water, education facilities and electricity to all.

It can also be reverted by making provision of infrastructure stimulus by allotment of special funds, development of special skills, good governance, support to infrastructural project and policy review and reform.

Question 1.
Look at the following data and answer the questions that follow: (Textbook Page No. 72)
Maharashtra Board Class 12 Geography Solutions Chapter 7 Region and Regional Development 8
(i) In which region is contribution of primary activities the least?
(ii) In which region is the contribution of primary activities the most?
(iii) In which region the contribution of tertiary activities is the most?
(iv) Which region has the highest HDI?
(v) Can you draw a conclusion on basis of the answers from Q (i) to Q (iv)?
Answer:
(i) In region A, the contribution of primary activities is the least.
(ii) In region E, the contribution of primary activities is the most.
(iii) In region B, the contribution of tertiary activities is the most.
(iv) In region A, there is highest HDI.
(v) We can conclude by saying that Human Development Index is high in countries where contribution of secondary and tertiary sector to GDP is high compared to the contribution of primary sector to GDP.

Region A, B, C and D have more than 30% contribution of secondary sector to GDP and more than 60% contribution of tertiary sector to GDP, it means these regions are developed regions.

The contribution of primary sector to GDP in region E is more but the contribution from secondary and tertiary sector is less compared to other regions, so region E is in the developing stage.

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

Balbharti Maharashtra State Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

1A. Choose the correct alternative and rewrite the statement.

Question 1.
In 1946, under the leadership of the movement of ____________ ‘Civil Disobedience’ was launched in
Goa.
(a) Dr. Ram Manohar Lohia
(b) Dr. T.B. Kunha
(c) Dr. P.P. Shirodkar
(d) Dr. Ram Hegde
Answer:
(a) Dr. Ram Manohar Lohia

Question 2.
Hyderabad’s struggle of freedom was led skillfully by ____________
(a) King Hari Singh
(b) Swami Ramanand Tirth
(c) Pandit Mahadevshastri Joshi
(d) Keshavrao Jedhe
Answer:
(b) Swami Ramanand Tirth

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

Question 3.
The princely states in India were merged in India mainly through the efforts of ____________
(a) Jayantrao Tilak
(b) Sardar Vallabhbhai Patel
(c) Pandit Jawaharlal Nehru
(d) Dr. T.B. Kunha
Answer:
(b) Sardar Vallabhbhai Patel

1B. Find the incorrect pair from group ‘B’ and write the corrected one.

Question 1.

Group ‘A’ Group ‘B’
1. Merger of the princely state of Hyderabad Swami Ramanand Tirth
2. Merger of the princely state of Kashmir Shaikh Abdullah
3. Significant contribution in the ‘Goa Liberation Movement Mohan Ranade
4. The trade unionist leader in Puducherry V. Subbayya

Answer:
The merger of the princely state of Kashmir – King Hari Singh (Instrument of Accession)

2. Write the names of historical places/persons/events.

Question 1.
The President of Goa Congress Committee –
Answer:
Dr. T.B. Kunha

Question 2.
The princely states that did not merge in India immediately after its independence –
Answer:
Junagadh, Hyderabad, Kashmir, Dadra and Haveli, Goa and Puducherry

3. Observe the map on textbook page 61 and answer the questions based on it.

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India 3

Question 1.
Name the countries located at the northwest border of India.
Answer:
Pakistan and Afghanistan.

Question 2.
Which places in India were the centers of Portuguese rule?
Answer:
Goa, Dadra and Nagar haveli, Diu and Daman.

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

Question 3.
Which place on the eastern coast of India were the centers of French rule?
Answer:
Puducherry, Yanam and Karaikal.

Question 4.
Which nation is located at the southern tip of India?
Answer:
Sri Lanka

4. Complete the following concept map.

Question 1.
Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India 4
Answer:
Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India 4.1

5. Explain the following statements with reasons.

Question 1.
Ultimately the princely state of Hyderabad was merged in India.
Answer:

  • Hyderabad was under Nizam rule, it was the largest amongst princely states along with Telugu, Kannada, and Marathi regional sections.
  • The various organisation was formed to fight against Nizam’s policies for his people.
  • Swami Ramanand Tirth alongside loyal workers were leading this organisation to gain freedom from the Nizam.
  • Hyderabad State Congress passed a resolution that Hyderabad will merge in India and this was not liked by Nizam, he was willing to join Pakistan.
  • The people of Hyderabad wanted to merge in India.
  • Kasim Razvi formed a ‘Razakar’ organisation against people.
  • In the end, the Indian Government launched a police campaign against Nizam, under the name ‘Operation Polo’.
  • In 1948 Nizam surrendered and Hyderabad merged in India.

Question 2.
Puducherry was declared as a Union territory.
Answer:

  • Puducherry was under the French colony. India was under the impression that the British and Portuguese will send a message to the French to leave India, however, this did not happen.
  • Puducherry, Mahe, Yanam, and Chandranagar in West Bengal were under French control.
  • The people of Puducherry got united under Subbayya, a communist politician and leader.
  • The government noticed it as serious and strongly demanded that French governments should return all the regions held by them.
  • In 1948, a bilateral agreement was signed by both governments. In 1949, Chandranagar was merged.
  • In 1954, all French colonies were merged in India. In 1962, the French Parliament approved the bilateral agreement and in 1963, Puducherry became the ‘Union Territory’ of India.

6. State your opinion.

Question 1.
Andhra, Karnataka, Maharashtra Councils (Parishad) were found in the princely state of Hyderabad.
Answer:

  • Hyderabad was the largest amongst princely states in India. It comprised Telugu, Kannada, and Marathi regional sections. It was ruled by Nizam.
  • Nizam of Hyderabad had put many restrictions on the Civil and Political rights of his subjects to a great extent.
  • To fight against such restrictions in the state, people had formed organizations like ‘Andhra Parishad’ in Telangana, ‘Maharashtra Parishad’ in Marathwada, and ‘Karnataka Parishad’ in Karnataka.

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

Question 2.
The Portuguese rule in Goa remained untouched till 1961.
Answer:

  • Goa was under Portuguese control. There prevailed a general notion among Indians that the departure of the British from India would send a signal to the Portuguese and the French to leave India on their own.
  • However, this did not happen and many freedom fighters like Dr. Ram Manohar Lohia, Dr. Kunha, and many more have contributed to the struggle against the Portuguese.
  • At last, the Indian govt has sent the army, under Operation Vijay, to make Goa free from Portuguese control and became a part of India on 19th December 1961.

Class 12 History Chapter 7 Decolonisation to Political Integration of India Intext Questions and Answers

Try to do this (Textbook Page No. 58)

Try to collect information about the newspapers published during ‘Hyderabad Freedom Struggle’ with the help of the internet.
Answer:
Students should do it on their own.

Try to do this (Textbook Page No. 60)

Collect information about the fort of Panaji and make a poster about the fort.
Answer:
Students should do it on their own.

Project (Textbook Page No. 62)

Collect information about the ‘Gorta Massacre’ a very important instance in the struggle for liberating Hyderabad. To get more information about it visit the following website: www.bhausahebumate.com
Answer:
(i) As we know Qasim Razvi, had founded the Razakar organisation (Nizam’s private military) to help Nizam to suppress the voice of people against Nizam of Hyderabad. Gorta was the name of a village (Karnataka) and people were massacred by Razakars of Hyderabad in 1948. Gorta Village is also known as Jaliyanwala Bag of Karanataka, it was a mass killing on May 9th and 10th 1948. Though a plaque kept in front of the village gives fight date May 5th, and it continued for two weeks. It is said that around 200 people were killed by Razakars and property destruction was worth ₹ 70 lakhs.

Maharashtra Board Class 12 History Solutions Chapter 7 Decolonisation to Political Integration of India

(ii) A folk song called ‘Bhulai pada’ sung by village women in bitter memory of the massacre. There is demand from village people in front of the Government for the construction of the memorial at Gorta. Local people and local political parties had collected ₹ 27 lakh for a 35-foot memorial and laid the foundation on September 17th, 2014.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 3B Elasticity of Demand Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Economics Solutions Chapter 4 Supply Analysis

1. Complete the following statements:

Question 1.
When the supply curve is upward sloping, its slope is ……………….
a) positive
b) negative
c) first positive then negative
d) zero
Answer:
a) positive

Question 2.
An upward movement along the same supply curve shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
c) expansion of supply

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Question 3.
A rightward shift in supply curve shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
d) increase in supply

Question 4.
Other factors remaining constant, when less quantity is supplied only due to a fall in price, it shows ………………..
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Answer:
a) contraction of supply

Question 5.
Net addition made to the total revenue by selling an extra unit of a commodity is ………………..
a) total Revenue
b) marginal Revenue
c) average Revenue
d) marginal Cost
Answer:
b) marginal Revenue

2. Complete the Correlation:

1) Expansion of supply: Price rises:: Contraction of supply: ………………….
2) Total revenue : …………………. :: Average revenue :TR/TQ
3) Total cost : TFC + TVC :: Average cost : ………………….
4) Demand curve : …………………. :: Supply curve : Upward
5) …………………. : Change in supply :: Other factors constant: Variation of supply
Answers:
(1) Price falls
(2) PxQ
(3) TC ÷ TQ
(4) Downward
(5) Other factor changes

3. Give economic terms:

1) Cost incurred on fIxed factor.
2) Cost incurred per unit of output.
3) Net addition made to total cost of production.
4) Revenue per unit of output sold.
Answers:
(1) Fixed Cost
(2) Average Cost
(3) Marginal Cost
(4) Average Revenue

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

4. Distinguish between:

Question 1.
Stock and Supply.
Answer:

Stock Supply
(a) Stock refers to the total quantity of commodity available with producer for sale. (a)Supply is that part of stock which the seller is willing to offer for sale at a given price.
(b) It is outcome of production. If production increases, stock will also increase. (b) It is outcome of stock. Stock is the basis of supply.
(c) It is a fund or reservoir and a static concept (inelastic). (c) It is a flow concept. It changes according to change in price (elastic).
(d) It can exceed supply. (d) It cannot exceed stock.

Question 2.
Expansion of Supply and Increase in Supply.
Answer:
Expansion / Extension of Supply

  1. When the supply of a commodity rises only due to the rise in the price of the commodity, then it is said to be extension in supply.
  2. Extension of supply is a case of variation in supply.
  3. Rise in price is the only factor due to which supply expands / extends.
  4. When there is extension in supply, there is an upward movement on the same supply curve.
    Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 1

Increase in Supply :

  1. The supply is said to increase if at the same price more is supplied.
  2. Increase in supply is a case of changes in supply.
  3. Supply increases due to
    (1) fall in cost of production
    (2) improvement in transport facility
    (3) introduction of modern technology
    (4) government subsidies
    (5) more imports etc.
  4. When there is an increase in supply, the supply curve shifts to the right of original supply curve.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 2

Question 3.
Contraction of Supply and Decrease in Supply.
Answer:
Contraction of Supply

  1. Contraction of supply occurs when quantity supplied of a commodity falls due to a fall in price alone.
  2. It is a case of variation in supply.
  3. Supply contracts due to fall in price alone.
  4. When there is a downward n curve.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 3
Decrease in Supply

  1. Decrease in supply occurs when less quantity is supplied at the same price.
  2. It is a case of changes in supply.
  3. Supply decreases due to –
    (1) increase in cost of production
    (2) transport strike
    (3) outdated technique
    (4) heavy taxes imposed by government.
    (5) more exports etc.
  4. When there is curve shifts to curve.
    Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 4

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Question 4.
Average Revenue and Average Cost.
Answer:

Average Revenue (AR) Average Cost (AC)
(a) Average revenue refers to average income earned per unit of a sold commodity. (a)Average cost refers per unit of cost of production of a commodity produced.
(b) It is calculated by dividing total revenue (TR) earned by number of unit sold. (b) It is calculated by dividing total cost (TC)by number of units of that commodity produced.
(c) Symbolically it in expressed as \( [latex]\frac { Total Revenue }{ Total Quantity sold }\) [/latex] (c) Symbolically it is expressed as \(\frac { Total Cost }{ Total Quantity produced }\)
E.g. If TR from sale of 10 units of a commodity is Rs. 1000 then, AP =  1000/10 = Rs. 100 E.g. If TC of 100 units a commodity is Rs. 1000 then, AC =  \(\frac { 1000 }{ 100 }\) = Rs. 10

5. Observe the following table and answer the questions.

A) Supply schedule of chocolates

Price in Rs. Quantity supplied in units
10 200
15 ………
20 300
25 350
30 ……..
35 ……..
40 ……..

Question 1.
Complete the above supply schedule.
Answer:

Price in Rs. Quantity supplied in units
10 200
15 250
20 300
25 350
30 400
35 450
40 500

Question 2.
Draw a diagram for the above supply schedule.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 6

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Question 3.
State the relationship between price and quantity supplied.
Answer:
This diagram shows the direct relationship / between price and quantity supplied of) chocolates. When its price is ? 10, 200 units ( are supplied and as price rises to 15, 20, 25 ? …. and so on, quantity supplied also rises to )
When the schedule is plotted on the graph we 250, 300, 350 and so on. This is the law of supply of an individual firm.

B) Observe the market supply schedule of potatoes and answer the following questions.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 7

Question 1.
Complete the quantity of potato supplied by the firms to the market in the above table.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 8

Question 2.
Draw the market supply curve from the schedule and explain it.
Answer:
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 9
When the schedule is plotted on the graph we get a market supply curve ‘SS’ which is upward sloping. This curve shows that as price rises from ₹ 1 to ₹ 2, supply rises from 1oo to 112 kg, but when price rises from ₹ 2 to ₹ 3, supply rises to a greater extent from 112 kg to 155 kg in the market. When price rises to ₹ 4 Supply falls from 155 kg to 154 kg. This may be because of perishable or seasonal good that supply could not Jj be increased and supply falls. This show backward bending supply curve, showing partly an exception to the supply curve.

6. Answer the following questions:

Question 1.
Explain the concept of total cost and total revenue.
Answer:
Total Cost (TC): It is the total expenditure incurred by a fir m on the factors of production required for the production of goods and services. Total cost is the sum of Total Fixed Cost (TFC) and Total Variable Cost (TVC). Total Fixed Cost is the cost incurred on fixed factors of production like land, factory, building, capital, etc. These factors cannot be changed in the short period. They remain constant. Total Variable Cost is the cost incurred on variable factors such as raw – materials, labour, etc. These factors can be varied or changed according to the change in output level. So the variable cost varies. Total Cost = Total Fixed Cost + Total Variable Cost
i.e., TC = TFC + TVC
TC increases as the level of output increases.

Total Revenue :
(Income) refers to total receipts of the firm from its sales of commodity. It is obtained by multiplying the price per unit of the  commodity with the total number of units!; of commodity sold to the consumers. Thus, Total Revenue = Price per unit Total  Number of units of commodity sold.
Example : If the firm sells lo units of a commodity at ₹ 100 per unit then total revenuewifibe TR = 100 x 10. TR= ₹ 1000

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Question 2.
Explain determinants of supply.
Answer:

  1. Cost of Production : Changes in the price of factors of production like rent, wages, interest affects the cost of production. When cost of production increases, supply decreases.
  2. Price of Other Goods : The supply of a given commodity depends on the price of other commodity. E.g. if the price of wheat rises and that of rice remains the constant, then the producer will think of producing J more of wheat. This will affect the supply of rice.
  3. price of the Commodity : Price is an important factor influencing the supply. More is supplied at a higher price and less at a lower price. So price and supply are 5 directly related.
  4. Climatic Conditions : The supply of j commodity is also influenced by the forces
  5. Government Policy : Government policies like taxation, subsidies, industrial policies etc., may encourage or discourage production and supply. A tax on the commodity will raise the cost of production and reduce the supply while a subsidy on the other hand will provide an incentive to increase production and supply.
  6. Exports and Imports : When the
    government resort to imports, supply expands, at the same time heavy exports would reduce the supply in the domestic market.
  7. Nature of Market : In a competitive market, the supply would be more but in a monopoly market the seller may create artificial scarcity to raise the price.
  8. Future Expectation : If future trends indicate a rise in price, the supply decreases at present. On the other hand if the sellers expect the future price to fall, supply would increase in the current period.
  9. Technique of Production : Improvement in the technique of production will lead to increase in supply. Application of advanced technology enables the producer to produce goods on large scale at a lower cost and lesser price.
  10. Infrastructure Facility : If means of transport and communication are well developed, the extent of market would be wide. i.e. supply will increase.
  11. Natural and Man-made Calamities : Natural calamities like earthquake, cyclone, flood etc., will affect the supply in the market. Even man-made calamities like a bomb-blast, affects supply. Even a strike call can affect supply in the market.

7. Answer in detail :

Question 1.
State and explain law of supply with exceptions.
Answer:
Law of Supply :
(A) Introduction : The law of supply was introduced by Dr. Alfred Marshall in his book “Principles of Economics” published in 1890. The law establishes a functional relationship between the price of a commodity and quantity supplied of that commodity. It explains the general tendency of the sellers in offering more goods for sale at a higher price than at a lower price.

(B) Statement of the Law : According to Prof. Alfred Marshall “Other things remaining constant, the higher the price of the commodity, greater is the quantity supplied and lower the price of the commodity, smaller is the quantity supplied.”In other words, quantity supplied of a commodity varies directly with price i.e., with a fall in price supply contract and with a rise in price supply expands.
S = f (P) [S = Supply, P = Price, f = Function of]
The law can be better understood with the help of a market supply schedule and market supply curve.

(C) Market Supply Schedule : Market supply schedule is a tabular representation of various quantities of a commodity offered for sale by all the sellers in the market at different prices during a given period of time. The schedule is a hypothetical one except one price rest are imaginary prices.

The above schedule clearly shows that sellers in general want to sell more at high prices and less at low price. E.g., at a low price of Rs.10 per unit the seller supplies only 100 units per day and at high price of Rs. 50 the supply rises to 500 units of ‘X’ per day.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

(D) Market Supply Curve : It is graphical representation of the above market supply schedule. Price is measured on ‘Y’ axis and quantity supplied on ‘X’ axis and above schedule is plotted. We derive a supply curve SS.

Market Supply Schedule

Price of ‘X’ per unit (in ?) Total Market Supply per day (in units)
10 100
20 200
30 300
40 400
50 500

There are some exceptions to the law of s supply. Following are such cases when supply may fall with the rises in price or rise with the fall in price.

(1) Labour supply : Supply of labour in the ) terms of hours of work is an important exception pointed out by economists. Generally when wages rise, workers work more, but after a certain point if wages continue to rise, supply of labour falls i.e. workers wish to earn more by work in for less hours and supply curve of labour would bend backwards as shown below :
Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis 10
In this figure as wage rate rises up to 0W, ;i supply of labor also rises up to ON, but when wage rate rises to 0W., labour supply falls from ON to 0Nr Hence an exception.

(2) Saving : In case of savings generally it is observed that as the rate of interest rises, savings also rises but some people want to have a fixed regular income by way of interest. They may save less at a higher rate of interest and save more at a lower rate of interest. For example : suppose a person is interested in earning a fixed income of ₹ 800 p.a. then he saves ₹ 10,000/- at 8% rate of interest but when rate of interest increases to 10%, he will save only ₹ 8,000/-.

(3) Future Expectations: If the seller expects a fall in price in future, then he will supply more today even at a low price. But if he expects the prices to rise further in future he will withhold the supply today to supply more in future at a high price.

(4) Need for Cash : When the sellers are in urgent need of liquid cash, then even at a lower price they will offer more goods for sale.

(5) Rare Goods : In case of rare collections such as rare painting, old coins, antique, the law is not applicable as the supply remains fixed. The supply curve is a vertical straight line parallel to Y axis.

(6) Agricultural Goods: Supply of agricultural product is influenced by natural factors like climatic conditions, rainfall etc., which cannot be controlled by man. So in bad weather condition, even at a higher price the supply of agricultural commodities will not increase.

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Intext Questions

Question 1.
“Concept of supply is a micro concept but concept of aggregate supply is a macro concept”. Explain. (Textbook Page No. 43)
Answer:
Micro economics studies about economic behavior of units like households, firm market and particular commodities. Whereas macro economics deals with the broad economic concepts like total demand, total supply, national income, etc.
Supply refers to supply of an individual seller and aggregate supply refers to total supply of a commodity.
Hence, supply is a microscopic concept and aggregate supply is macro concept.

Question 2.
What do you mean by aggregate supply? (Textbook Page No. 43)
Answer:
Aggregate supply refers to the minimum amount of sales proceeds which the entrepreneurs expect to receive from the sale of output at a given level of employment.

Find out (Textbook Page No. 43)

If a firm produces 600 units of a commodity in a day and incurs a total cost of ₹ 30,000. Calculate the Average Cost.
Answer:
Average cost refers to the cost of production per unit cost of a commodity. It is calculated by dividing total cost by total quantity of a commodity. Hence,
AC = \(\frac{\mathrm{TC}}{\mathrm{TQ}}=\frac{30,000}{600}\) = ₹ 50 per unit

Maharashtra Board Class 12 Economics Solutions Chapter 4 Supply Analysis

Find out (Textbook Page No. 43)

If a firm sells 400 units of a commodity at ₹ 10 unit. Calculate the TR and AR.
Answer:
TR = Price X Quantity
= 10 x 400
= 4,000
AR = \(\frac{\mathrm{TR}}{\mathrm{TQ}}\)
= \(\frac{4,000}{400}\)
= ₹ 10

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

1. Choose the correct option:

Question 1.
The branch of economics that deals with the allocation of resources.
a) Microeconomics
b) Macroeconomics
c) Econometrics
d) None of these
Options:
1) a, b and c
2) a and b
3) only a
4) None of these
Answer:
3) only a

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

Question 2.
Concepts studied under Micro economics.
a) National income
b) General price level
c) Factor pricing
d) Product pricing
Options :
1) b and c
2) b, c and d
3) a, b and c
4) c and d
Answer:
4) c and d

Question 3.
Method adopted in micro economic analysis.
a) Lumping method
b)Aggregative method
c) Slicing method
d) Inclusive method
Options :
1) a, c and d
2) a. b and d
3) only c
4) only a
Answer:
3) only c

Question 4.
Concepts studied under Macro economics.
a) Whole economy
b) Economic development
c) Aggregate supply
d) Product pricing
Options:
1) a, b and c
2) b, c and d
3) only d
4) a, b, c and d
Answer:
1) a, b and c

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

2. Complete the correlation:

1) Micro economics : Slicing method : : Macro economics: ……………. 1
2) Micro economics: Tree : : Macro economics: …………….. 2
3) Macro economic theory : Income and employment:: Micro economics : ……………. 4
4) Makros : Macro economics:: Mikros : ……………… 3
5) General equilibrium : Macro economics :: …………….. : Micro economics 5
Answers:

  1. Lumping method
  2. Forest
  3. Price theory
  4. Micro economics
  5. partial equilibrium

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

Question 1.
Gauri collected the information about the income of a particular firm.
Answer:
Concept: Micro economics / Slicing method.
Explanation : Micro economics refers to the study of small unit from whole economy. Micro economics uses slicing method to split the whole economy into small individual units.
Gauri has used slicing method from micro economics to collect information about the income of a particular firm from various firms.

Question 2.
Ramesh decided to take all decisions related to production, such as what and how to produce?
Answer:
Concept: Free market economy.
Explanation : A free market economy is that economy where the economic decisions regarding production of goods are taken at individual level.

Eg. What to produce? How much to produce? How to produce? etc. decisions are taken by producers.
With the help of free market economy Ramesh has taken decision related to production such as What to produce? and How to produce?

Question 3.
Shabana paid wages to workers in her factory and interest on her bank loan.
Answer:
Concept : Factor Pricing.
Explanation : Theory of factor pricing refers to determining the factor rewards for land, labour, capital and entrepreneur in the form of rent, wages, interest and profit respectively.

Shabana is an entrepreneur who has paid wages to its worker in a factory for production of goods and also paid interest on her bank loan in form of rewards to the factors of production.

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

4. Answer the following:

Question 1.
Explain the features of Micro economics.
OR
Explain the characteristics or nature of micro economics.
Answer:
Features of Micro Economics :

  • Based on certain ssumption : Micro economics is based on ‘ceteris paribus’ assumption i.e., other things remaining constant like full employment, laissez faire policy, perfect competition, pure capitalism, etc.
  • Study of Individual units : Micro economics deals with the study of behaviour of small individual units of the economy such as individual units of the economy such as individual consumer, individual firm, individual industries, individual prices, etc.
  • Slicing Method : It divides or slices the economy into small units and studies each unit in detail e.g. study of a particular household demand in detail.
  • Analysis of Market Structures : Micro economics analyses different market structures such as perfect competition, monopoly, monopolistic competition, oligopoly, etc.
  • Use of Marginalism Principle : The term ‘marginal’ means change brought in total by an additional unit. Marginal analysis helps to study a variable through the changes by which producers and consumers take economic decisions using this principle.
  • Price Theory : Micro economics is known as price theory because it determines the prices of goods and services as well as prices of factors of production.
  • Limited Scope : The study of micro economics is limited to individual economic unit only. It does not deal with macro problems like unemployment, inflation, deflation, poverty, unemployment, population, etc.
  • Partial I quilibrium : Micro economics analysis deals with partial equilibrium which analyses equilibrium position of an individual economic unit i.e. individual consumer, individual firm, etc.

Question 2.
Explain the importance of Macro economics.
Answer:
Importance of Macro Economics :

  • Functioning of an Economy : It gives an idea of functioning of an economic system and help us to understand the behavioural pattern of aggregate variables.
  • Economic fluctuations : It helps to analyse the causes of fluctuation in income, output and employment.
  • National Income : It helps to study about National Income and makes possible to formulate correct economic policies.
  • Economic Development : It helps us to understand the problems of the developing countries such as poverty, difference in the standards of living, etc., and suggest important steps to achieve economic development.
  • Performance of an Economy : It helps us to analyse the performance of an economy where National Income estimates are used to measure the same.
  • Study of Macro-economic Variables :
    Study of macro economic variables are important to understand the working of the economy.
  • Level of Employment : Macro economics helps to analyse the general level of employment and output in an economy.

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

Question 3.
Explain the scope of Macro economics.
OR
“Scope of Macro Economics is wide.” Explain.
OR
Macro Economics is comprehensive in nature.
OR
Explain the subject matter of macro economics.
Answer:
Scope of Macro Economics:
The given chart helps us to understand the scope of macro economics.
Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics 1
1. Theory of Income and Employment : It explains which factors determine the level of National Income and employment and what j causes fluctuations in the level of income, output and employment.
To understand how the level of employment is determined, we have to study the consumption function. It includes theory of business cycles.

2. Theory of General Price Level and Inflation: Macro economics analyses shows how the general price level is determined and the causes for fluctuations in it. This study is important for understanding the  problems created by inflation and deflation.

3. Theory of Economic Growth and Development : Macro economics studies the causes of under development and poverty in poor countries and suggests strategies for accelerating growth and development in the country.

4.  Macro theory of Distribution : Macro theory of distribution deals with the relative share of rent, wages, interest and profit in j the total national income of various classes.

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

Question 1.
The scope of micro economics is unlimited.
Answer:
No, I do not agree with this statement.

  • Micro economics deals with small or individual units.
  • Micro economics is the study of particular firm, particular household, individual prices, wages, incomes, individual industries, particular commodities.
  • Micro economics deals with small part of National economy. It does not deal with whole economy like National income, Aggregate demand, Aggregate supply, poverty, inflation, etc.
  • Hence, the scope of micro economics is limited.

Question 2.
Macro economics deals with the study of individual behaviour.
OR
Macro economics studies small units.
Answer:
No, I do not agree with this statement.
OR
Macro Economics is the study of I aggregate.
OR
Macro economics is concerned with macro economic variables.
Yes, I agree with this statement.

  • Macro Economics studies the behaviour ofthe economy as a whole and not individual behaviour.
  • It studies about larger economic units or aggregate economic variables like aggregate demand, aggregate supply, total investment, total savings, total employment, etc.
  • It studies the general price level and macro theory of distribution.
  • Whereas Micro Economics deals with individual behaviour of the people in the economy. It studies about individual demand, market demand, individual income, price of particular commodity etc.
  • According to Prof. Kenneth E. Boulding “Macro Economics deals not with individual; quantities as such, but with aggregates of these quantities, not with individual income but with National Income, not with individual prices but with general price level, not with individual output but with National Output.

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

Question 3.
Macro economics is different from micro economics.
OR
Macro economics is wider than Micro economics.
OR
There is difference between micro economics and macro economics.
Answer:
Yes, I agree with this statement.

  • Micro economics is a study of a particular unit of an economy. On the other hand macro economics is the study of entire economy.
  • Micro economics studies individual demand, individual supply, individual income, price determination of particular product, etc. On the other hand macro economics studies aggregate demand, aggregate supply, national income, etc.
  • Micro economics follows partial equilibrium analysis and macro economics follows general equilibrium analysis.
  • Micro economics uses slicing method for study of small unit and macro economics uses lumping method for study of large unit.
  • Therefore, macro economics is different from micro economics.

Question 4.
Micro economics uses slicing method.
Answer:
Yes, I agree with this statement.

  • Micro economics deals with small or individual units.
  • Micro economics divides or slices the economy into small units and studies each unit in detail.
  • It is concerned with microscopic study of these units.
  • It is the study of particular firm, particular household, individual prices, wages, incomes, etc.
  • Hence, micro economics uses slicing method.

Question 5.
Micro economics is known as Income theory.
Answer:
No, I do not agree with this statement.
OR Micro economics is also known as price theory.
Yes, I agree with this statement.

  • Micro Economics is known as ‘Price Theory’.
  • The scope of micro economics includes the study of product pricing and factor pricing.
  • The theory of product pricing explains how the price of food grains, vegetables, clothes, etc., are determined.
  • They are determined by the interaction of market demand and supply forces.
  • The theory of factor pricing explains the distribution of factor income such as rent on land, wages to labourers, interest on capital and profit to entrepreneurs.
  • The factor prices are also determined by the demand and supply forces.
  • Therefore, Micro Economics is also known as ‘Price Theory’.

Maharashtra Board Class 12 Economics Solutions Chapter 1 Introduction to Micro and Macro Economics

6. Answer in detail :

Question 1.
Explain the importance of Micro economics.
Answer:
Introduction : Micro economics is the Js branch of economics that studies the behaviour of individuals.
It includes individual prices, wages, income, individual industries, particular commodities, particular household, etc.
(1) Definition :
(a) According to Maurice Dobb – “Micro economics is in fact a microscopic study of l the economy.
(b) According to Prof. A. P. Lerner – “Micro economics consists of looking at the economy ? through a microscope as it were to see how the millions of cell in the body of economy – the individuals or households as consumers and individuals or firms as producers play their part in the working of the whole economics organism.

(2) Meaning:
Micro economics deals with small individual economics units such as an individual ( consumer, individual producer, the price of a particular commodity or factor etc.

(3) Importance :
(a) Price Determination : Micro economics j explains how the prices of different products < and various factprs of production are determined.

(b) Free Market Economy : A free market economy is that economy where the economic decisions are taken at individual levels without intervention by the government. Decisions are regarding production of goods such as What to produce? How much to produce? How to produce? etc.

(c) Foreign Trade : Micro economics also explains gains from foreign trade, effects of tarrifs, factors affecting exchange rate, etc.

(d) Economic Model Building : Micro
economics helps in understanding various complex economic situations with the help of economic models.

(e) Business Decision : Micro economics theories are helpful to businessman for taking important business decision related to determination of cost of production and prices of goods, maximization of output & profit, etc.

(f) Useful to Government : It is useful in formulating and evaluating economic policies including pricing and distribution policies that promote economic welfare. It is useful in determining tax policy, public, expenditure policy, etc.

(g) Basis of Welfare Economics : It explains how optimum use of resources can be made to increase the welfare of the society. It also studies how taxes affect social welfare.

Question 2.
Explain the concept of Macro economics and its features.
Answer:
Introduction : Macro economics is the branch of economics that studies the behaviour and performance of an economy as a whole. It includes inflation, unemployment, working of the monetary system, business cycles, economic policies, etc.

(1) Definition:
(a) J. L. Hansen : “Macro economics is that branch of economics which considers the relationship between large aggregates such as the volume of employment, total amount of savings, investment, national income, etc”.
(b) Prof. Carl Shapiro : “Macro economics deals with the functioning of the economy as a whole. ”

(2) Meaning:
Macro economics is the study of aggregates national income, total employment, total consumption, inflation, total saving, etc.

(3) Features:
(a) Study of Aggregate : Macro economics deals with the study of entire economy. It studies the overall condition in the economy, such as National Income, National Output, Total Employment, General Price levels, etc.

(b) General Price Level : Macro economic studies the determination and changes in general price level which is the average of all prices of goods and services currently being produced in the economy.

(c) policy Oriented : Macro economics is a policy oriented science which is useful in formulating economic policies to promote economic growth, to control inflation and depression, to generate employment, etc.

(d) Lumping Method : Lumping method is the study of the whole economy rather than in part. It considers aggregates like National Income, Total consumption, etc. instead of personal income, PCC, etc.

(e) General Equilibrium Analysis : Macro Economics analysis is based on general equilibrium which deals with the economic system as a whole and studies the inter relationships between the various macro variables in an economy. General equilibrium deals with the behaviour of demand, supply and prices in the whole economy.

(f) Income Theory : Macro economics studies the concept of National Income and its causes of fluctuations that lead to business cycles i.e. inflation and deflation.

(g) Growth Models : Macro economics studies various factors that contribute to economic growth and development. These growth models are used for studying economic development.

(h) Interdependence : There is an element of interdependence among the macro economic variables such as income, output, employment, investment, price level, etc.

Intext Questions

Try this (Textbook Page 6)

Visit the vegetable market in the nearest area and try to get information about income and expenditure items of a particular seller.
Answer:
[Note : Students should do this activity by themselves.]

Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism

Balbharti Maharashtra State Board Class 12 History Solutions Chapter 2 European Colonialism Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 History Solutions Chapter 2 European Colonialism

1A. Choose the correct alternative and rewrite the statement.

Question 1.
‘Declaration of Independence was drafted by __________
(a) George Washington
(b) Thomas Jefferson
(c) Lord Amherst
(d) Lord Cornwallis
Answer:
(b) Thomas Jefferson

Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism

Question 2.
The second Anglo-Burmese war was fought during the times of __________
(a) Lord Amherst
(b) Lord Dufferin
(c) Lord Dalhousie
(d) Ashley Eden
Answer:
(c) Lord Dalhousie

1B. Find the incorrect pair from group ‘B’ and write the corrected one.

Question 1.

Group ‘A’ Group ‘B’
1. Togoland German colony
2. Egypt British colony
3. Orange Free State Dutch colony
4. Ivory Coast Portuguese colony

Answer:
Ivory Coast – French colony

2A. Write the names of historical places/persons/events.

Question 1.
The region from Florida to California on the southern coast of America was under the control of-
Answer:
Spain

Question 2.
The sea voyages for exploration were encouraged in the reign of-
Answer:
Queen Elizabeth I

2B. Choose the correct reason from those given below and complete the sentence.

Question 1.
The British wanted to gain control over Myanmar because __________
(a) they wanted to expand their empire
(b) it was very important to control the natural resources and the market in Myanmar
(c) they wanted to be at the forefront of the colonial competition amongst the European nations
(d) they wanted to teach a lesson to King Thibaw of Myanmar
Answer:
(b) it was very important to control the natural resources and the market in Myanmar

Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism

3. Complete the following concept map.

Question 1.
Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism Q3
Answer:
Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism Q3.1

4. Write short notes.

Question 1.
Nature of Colonialism.
Answer:

  • Colonialism is the act of a developed nation occupying the land of a less developed, distant nation and establishing its rule on the occupied country. Europeans travelled all over the world with various intentions such as the urge for adventures, to earn a name, to discover unknown lands, to search for gold mines, etc.
  • The Europeans established colonies wherever they went and in doing so there was a competition to gain economic, social, and political supremacy among the nations. Extreme nationalism, feeling of racial superiority, industrialization, aggressive approach, etc., are the factors that led to the growth of colonialism.
  • Thus, Europeans went to America, Australia, and New Zealand. The Europeans also colonised Asia. However, the climate of Asia did not favour them. Favourable or unfavourable, Europeans disposed of the indigenous people in their own lands.
  • The Europeans saw these colonies as potential marketplaces to sell their surplus goods which were accumulated as a result of mass production. The Europeans also needed additional sources that would provide ample raw material.
  • In the latter half of the 19th century, England built a flourishing trade as a result of the industrial revolution.

Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism

Question 2.
American War of Independence.
Answer:
The colonies got into several battles with the British army even after gaining independence. The colonies finally at Saratoga got a decisive victory over the British army. This victory proved to be a turning point for the colonies as the French agreed to support them in their conflict against the British. Eventually, Spain also joined the conflicts in their struggle for independence.

On 7th October 1780, George Washington defeated the British army. On 19th October, British General Lord Cornwallis surrendered and America became independent. The American revolt for independence is also known as the ‘American Revolution’. America proved to the world that the subjects have a right to fight their rulers who deny them their natural rights.

5. Explain the following statements with reasons.

Question 1.
The industrial revolution gave momentum to colonialism.
Answer:
Colonialism was a result of the industrial revolution. Production increased enormously because of the new machines. However, the rate of local consumption was much less compared to the surplus rate of production. Hence, the immediate need of the Europeans was to find new markets for selling their products. It was also necessary that these markets be dependable and easy to dominate.

Question 2.
European nations established colonies in America.
Answer:
The stronger European nations dominated the weaker countries by establishing colonies there and pushed them to subjection. The lands of the original inhabitants in America were seized by the Europeans and were also massacred. The original inhabitants were forced into slavery. The Europeans discovered gold mines and the Spanish colonizers brought African slaves to work in sugarcane and tobacco fields. Farming and mining earned them enormous wealth. Essential raw materials were exported to Spain and the finished goods used to be imported for sale in the local markets for the colonies. The trade of gold and silver also earned huge profits for the king. Witnessing Spain’s prosperity England, Holland and France also began to establish colonies in America.

Class 12 History Chapter 2 European Colonialism Intext Questions and Answers

Try to do this. (Textbook Page No. 11)

Locate the following regions under British domination on the map: Gibraltar, Malta in the Mediterranean Sea; British Guyana, British Honduras, British West Indies, Bermuda and Falkland islands in the Western Hemisphere; Aden, Sri Lanka, Myanmar, Hongkong, India; also, the countries in Africa.
Answer:
Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism Intext Q1

Project (Textbook Page No. 18)

Question 1.
Collect information about the biodiversity and sources of minerals in the African continent.
Answer:
1. Meaning of Biodiversity:
Biodiversity consists of two words ‘Biological’ and ‘Diversity’. It refers to all the variety of life that can be found on earth (plants, animals, fungi, and microorganisms) as well as to the communities that they form and the habitats in which they live.

Maharashtra Board Class 12 History Solutions Chapter 2 European Colonialism

2. Biodiversity in Africa:

  • Rich in biodiversity.
  • Africa supports the earth’s largest assemblages of large mammals which roam freely in many countries.
  • Africa is home to a rich and diverse animal, plant, and marine biodiversity that provide critical ecosystem services.

3. Minerals in Africa:
Africa is rich in mineral reserves and ranks first or second in quantity of world reserves of bauxite, cobalt, industrial diamond, phosphorite, platinum, etc.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Balbharti Maharashtra State Board Class 12 Economics Solutions Chapter 8 Public Finance in India Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Economics Solutions Chapter 8 Public Finance in India

1. Choose the correct option

Question 1.
Optional functions of Government:
a) Protection from external attack
b) Provision of education and health services
c) Provision of social security measures
d) Collection of tax
Options:
1) b and c
2) a, b and c
3) b, c and d
4) All of the above
Answer:
1) b and c

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 2.
Obligatory functions of the Government:
a) Provision of employment
b) Maintaining internal law and order
c) Welfare measures
d) Exporting goods and services
Options:
1) c and d
2) a and b
3) only b
4) a, c and d
Answer:
3) only b

Question 3.
Public finance is one of those subjects which are on the borderline between economics and politics’ ……………. is the view of
a) Adam Smith
b) Alfred Marshall
e) Prof. Hugh Dalton
d) Prof. Findlay Shirras
Options:
1) only a
2) only b
3) only c
4) only d
Answer:
3) only c

Question 4.
Non-tax sources of revenue:
a) Direct and Indirect Tax
b) Direct Tax and Fees
c) Fees
d) Special Levy
Options:
1) b and c
2) a and c
3) a, b, c andd
4) c and d
Answer:
4) c and d

Question 5.
Trends shown by Public expenditure of any Government shows following trend.
a) Constant
b) Increasing
c) Decreasing
d) Fluctuating
Options:
1) only a
2) only b
3) only c
4) only d
Answer:
2) only b

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 6.
Identify the right group of pairs from the given options.
I) Direct tax – a) Non-tax revenue
ii) Indirect tax – b) Inflation
iii) Fees and Fines – c) GST
iv) Surplus budget – d) Personal income tax
Options:
a) i-d ii-c iii-b iv-a
b) i-c li-d ill-a iv-b
c) i-d li-c ill-a iv-b
d) i-a li-b iii-c iv-d
Answer:
c) i-d li-c ill-a iv-b

2. Distingwish between following concepts:

Question 1.
Public finance and Private finance.
Answer:

Public Finance Private Finance
(a) Public finance refers to income and expenditure of public authorities. (a) Private finance refers to income and expenditure of individual and private sector organisations.
(b) The objective of public finance is to offer maximum social advantage. (b) The objective of private finance is to fulfil private interest.
(c) Credit availability is more to increase public finance. (c) Credit availability is limited to increase private finance.
(d) The supply of public finance is more elastic. (d) The supply of private finance is less elastic.
(e) In case of public finance, government first determines the volume and different ways of it’s expenditure. (e) In case of private finance, an individual considers income first and then determines the volume of expenditure.

Question 2.
Internal debt and External debt.
Answer:

Internal Debt External Debt
(a) It refers to borrowings of the government to raise fund within the economy. (a) It refers to borrowings of the government to raise fund outside the economy.
(b) In case of internal debt, domestic currency is used. (b) In case of external debt, foreign currency is used.
(c) It is less complex to manage internal debt. (c) It is more complex to manage external debt.
(d)  E.g. borrowings from RBI, nationalized banks and business organisations within a country. (d) E.g. borrowings from foreign government and international organisation like IMF, World Bank, etc.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 3.
Developmental expenditure and Non developmental expenditure.
Answer:

Developmental Expenditure Non-developmental Expenditure
(a) The government expenditure which gives productive impact is called developmental expenditure. (a) The government expenditure which does not yield any direct productive impact, is called non-developmental expenditure.
(b) Developmental expenditure results in the generation of employment, an increase in production, etc. (b) Non-developmental expenditure does not help to increase employment or production level.
(c) Expenditure on     education, industrial

developmental expenditure.

(c) Administration cost, war expenses, etc. are examples of non-developmental expenditure.
(d) They are productive in nature. (d) They are unproductive in nature.

Question 4.
Special assessment and Special levy.
Answer:

Special Assessment Special Levy
(a) The charges paid by the citizens for getting certain special facilities by authorities are called special assessment. (a) Special Levy are the charges levied on those commodities, whose consumption is harmful to human health.
(b) The objective behind taking special assessment is to provide extra special facilities to people. (b) The objective behind charging special levy is to discourage the consumption of harmful commodities.
(c) Special assessment is taken from residents of a particular area. (c) Special levy is taken from consumers of particular commodities.
(d) E.g. Special assessment is paid for the provision of special facilities like roads, water supply, etc. (d) Special levy is paid for using commodities like wine, opium and other intoxicants, etc.

Question 5.
Direct Tax and Indirect tax.
Answer:

Direct Tax Indirect Tax
(a) It refers to that tax which is paid by a person on whom it is legally imposed. (a) It refers to that tax which is imposed on one person but paid by the other.
(b) A direct tax is paid by a person on whom it is legally imposed. It cannot be transferred. (b) Indirect tax is imposed on one person but paid by the other.
(e) In case of public finance, government first determines the volume and different ways of it’s expenditure. (e) In case of private finance, an individual considers income first and then determines the volume of expenditure.

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

Question 1.
Obligatory function is the only function of the Govenment.
Answer:
No, I do not agree with this statement.
It is essential to perform obligatory functions for the government like protection from external attack, maintaining law and order, defence and civil administration, etc.
But modern government also perform some optional functions also. They are necessary for social and economic development of the country such as provision of education and health services, provision of social security like pensions and other welfare measures.
So, government has to perform obligatory as well as optional functions.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 2.
Fines and penalties are a major source of revenue for the Government.
Answer:
No, I do not agree with this statement.
Public revenue is the aggregate income, with the government, comes through various sources.
These sources are classified as tax-revenue and non-tax revenue.
Tax revenue is a compulsory contribution from people to government without getting any special benefits to tax-payers.
So, tax revenue is the major source of revenue for the government.
However, fines and penalties are sources of non-tax revenue.
The government imposes fines and penalties { only on those who violate the laws of a country. So, the income from this source is ) very small.

Question 3.
The goods and services tax (GST) has replaced almost all indirect taxes in India.
Answer:
Yes, I agree with this statement.
The Goods and Service Tax (GST) came into effect in India on 1st July, 2017.
GST is an indirect tax used in India, on the supply of goods and services.
GST simplified the tax system in a country.
GST is different from an excise or sales tax imposed on the manufacture or sale of ; a product. GST is a tax levied on supply of goods and services.
GST replaced almost all indirect taxes like central excise duty, service tax, entry tax, entertainment tax, etc.
Because, GST is a comprehensive tax base with nationwide coverage of goods and ; services.

Question 4.
Democratic Governments do not lead to increase in public expenditure.
Answer:
No, I do not agree with this statement. i Public expenditure is that expenditure which is incurred by the public authority (i.e., central, state and local government). Public expenditure is required for protection of the citizens, for satisfying their collective needs and for promoting economic and social welfare of the people.
In a democratic state, government has to ( perform the obligatory functions like, defence and civil administration, maintaining internal law and order, etc.
Government also performs optional functions like provision of education and health services, provision of social security, etc.
To perform all these functions more efficiently, democratic government leads to increase in public expenditure.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 5.
Public finance is more elastic than private finance.
Answer:
Yes, I agree with this statement.
Public finance refers to the income and expenditure of public authorities, whereas, private finance is the income and expenditure of individuals and private sector organisations.

The main objective of public finance is to offer maximum social advantage, while the main motive of private finance is to fulfil private interest.

Public finance is more elastic compare to private finance because credit provision is much more in the market to increase public finance but, credit availability is limited to increase private finance.
It is also possible to the government to adjust revenue and expenditure with one another in case of public finance.

4. Read the given passage and answer the questions:

‘The conventional notion of social security is that the government would make periodic payments to look after people in their old age, ill-health. disability and poverty. This idea should itself change from writing a cheque for the beneficiary to institutional arrangements to care for beneficiaries. including by enabling them to look after themselves. to a large extent.

The write-a-cheque model of social security is a legacy from the rich world at the optimal phase of its demographic transition, when the working population was numerals enough and earning enough to generate the taxes to pay for the care of those not working. This model is ill-suited for less, well- off India with growing life expectancy. increasing urbanization and resultant migration. Social security
under urbanization will be different from social security in a static society.

Question 1.
State the conventional notion of social security.
Answer:
The conventional notion of social security is that the government would make periodic payments to look after people in their old age, ill-health, disability and poverty.

Question 2.
What kind of conceptual change is suggested in the given paragraph.
Answer:
The given paragraph suggests that, the idea should change from writing a cheque for the beneficiary to institutional arrangement to care for beneficiaries.
It will enable them to look after themselves to a large extent.

Question 3.
What is a legacy of social security from the rich world?
Answer:
The write-a-cheque model of social security i is a legacy from the rich world.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Question 4.
Which features of India make the traditional model of social security ill-suited for the
economy?
Answer:
Growing life expectancy, increasing urbanization and resultant migration are the features of India that make the traditional model of social security ill suited for the economy.

5. Answer the following:

Question 1.
State the types and importance of Government budget.
Answer:
(B) Importance of Budget:
Budget is important in number of ways.

(1) Tax rates presented in the budget indicates disposable income of the tax payer. It also determines the development of business and individuals.
(2) Government expenditure is also a part of budget. This public expenditure on defence, administration, infrastructure, education, health care, etc. affects the lives of the citizens and overall economy.
(3) Government uses budget as a medium for implementing economy policies in the country.
(4) Budgetary actions of the government affect production size and distribution of income, utilization of human and material resources of the country.
Thus, implementing suitable budgetary policy is very important for overall development of the economy.

Question 2.
Explain the principles of taxation.
Answer:
Principles of taxation are also called canons of taxation. There are four principles (canons) of taxation, propounded by Adam Smith
(1) Canon of Equity or Equality
(2) Canon of Certainty
(3) Canon of Convenience
(4) Canon of Economy

They are explained as follows :

1. Canon of Equity or Equality : According to Adam Smith, every person should pay taxes to the government in proportion to his ability to pay.
Canon of equity or equality means rich people should pay more tax as compared to poor.

2. Canon of Certainty : Adam Smith suggested that the tax payer should know in advance that, how much tax he has to pay, at what time and in what form he has to pay tax to the government.

3. Canon of Convenience : According to this principle, every tax should be levied in such a manner and at such a time that, it becomes convenient to the tax payer to make payment.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

4. Canon of Economy : This principle suggests that the cost of tax collection should be the minimum. If tax is collected economically, then such a tax is considered to be a good tax.
Every citizen of a country has to pay tax, imposed upon him as it is compulsory contribution to the government.
Tax is a major source of revenue to the government.
Therefore, public authority (Government) must consider all the principles (canons) of taxation in the preparation and implementation of tax system.

Question 3.
Explain non-tax sources of revenue of the Government.
Answer:
Non-tax revenue refers to the revenue received by the government from various ? sources other than taxes.
The sources of non-tax revenue are as follows:

Fees : It refers to charges paid, in return for certain specific services rendered by the government. E.g. fees paid for registration of house, car, education fees, etc.

Prices of Public Goods and Services : Various types of goods and services are produced, supplied and sold by modern government to the citizens. It; is added to public revenue when people s purchase them and pay their prices.

Special Assessment : It is special kind of tax, which is levied by local government on the residents of a particular area. In exchange of it, government provides some special facilities to them.

Fines and Penalties : It is imposed by government on those who violate the laws of the country.
E.g. a traffic police charges fine and collects money if someone violates traffic rule. The objective behind collection of fines and penalties is not to earn money but to discourage the people from violating the laws framed by the government It is small source of income.

Gifts, Grants and Donations : The government receives gifts from its citizens and others. It is included in public revenue. The government may also get grants from foreign government and institutions for general and specific purposes.
Foreign aid is also an important form of public revenue for developing country like India. However, this source of revenue is uncertain in nature.

Special Levies : It refers to the charges levied by government on those commodities, whose consumption is harmful to human health.
Special levies are paid for using commodities like wine, opium and other intoxicants. Special levy is imposed, not to earn income, but to discourage the people from using harmful products.

Borrowings: Government borrows to raise fund because government expenditure generally exceeds government revenue, in a welfare state.

When government borrows from foreign government or international organisations, it is known as external debt. It is more popular source of public revenue for investment in development of projects. Thus, public revenue in form of non-tax sources play very important role in socio¬economic development of a country. Explain the classification of public expenditure.

6. Answer in detail :

Question 1.
Explain various reasons for the growth of public
expenditure.
Answer:
Public expense is the expense incurred by the government (central, state and) local government). It is necessary for the protection of the citizens, for satisfying collective needs of the society and for ? promoting economy.and social welfare of a S country.

Public expense is necessary to perform various functions of the government Public ; expense consists of revenue and capital expenses as well as developmental and non-developmental expenses.

1. High Growth of Population : In a developing country like India, population is rising rapidly. Therefore, government has to incur greater expense to fulfil the needs of growing population.

(2) Growing Urbanisation : Due to expansion of urban sector, government expense increases. Government has to make the provision of water supply, roads, energy, schools and colleges, public transport, hospitals, welfare centres, sanitation, drainage system, etc.
It leads to growth in public expense.

(3) Public Health Care : Public health is a top most priority of modern welfare state. Government undertakes public vaccination programme, maintenance of dispensaries, maternity care and child welfare centres, etc
.
(4) Democracy : There is a democracy in India. A democratic form of government is very expensive due to regular elections and other public works.
It leads to growth in public expense.

(5) An increase in Defence Expense : Government has to incur defence expense to protect the country from external attacks as well as to maintain law and order in a country. Hence, an increase in defence expense leads to growth of public expense.

(6) Disaster Management : Many natural calamities like earthquakes, flood, cyclones, Covid-19 and man-made problems like social unrest, economic instability, etc. occur frequently. In such cases, government has to spend for disaster management which increases public expense.

(7) Infrastructure Development : It is necessary to make provision of economic infrastructure like energy, transport, communication and social infrastructure like education, health, etc. for rapid economic development of a country.
Thus, development of infrastructure facilities results into growth of public expense.

(8) Inflation : Due to inflation, prices of goods and services tend to rise. When government buys goods and services from the market for development of a country, government has to pay higher cost which raises public expense.

(9) Industrial Development : An increase in production depends upon industrial development. It leads to an increase in level of employment and overall economy growth. So, government implements various schemes and programmes for industrial development.
It results into growth of public expense.

(10) Increase in Government Activities : The modern government performs various obligatory and optional functions for social and economic development of a country. It requires huge fund to spend on education, public health, public recreation, social welfare schemes, etc.

Many other functions like maintenance of roads, lighting, public streets, construction of public houses, protecting life and property, public vaccination, garbage collection and ; disposal, prevention and control of epidemics etc. lead to growth of public expenses.

Government also spends on provision of pure water supply, removal of slums, checking ) food adulteration, etc.
All these factors are responsible for the j growth of public expense.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Intext Questions

Find out (Textbook Page 70) :

More examples of obligatory and optional functions of the government.
Answer:

Obligatory Functions of Govt. Optional Functions of Govt.
(a) Supply and maintenance of water works. (a) Construction of public parks and gardens.
(b) Extinguishing fires and protecting life and property when fire occurs. (b) Town planning
(c) Prevention and control of epidemics (e.g. Corona) (c) Housing for low income group
(d) Garbage collection and disposal (d) Construction and maintenance of rest- houses
(e) Public vaccination (e) Organising cultural events, sports etc.

Find out (Textbook Page 73) :

Reasons for growth in public expenditure other than given in the text-book.
Answer:

  1. Rise in per capita income.
  2. Rural development.
  3. Provision of transport and communication.
  4. Reducing inequalities.
  5. Expenditure on social services (like food, housing, education etc.)
  6. Effects of war.
  7. Pressure of social progress.

Maharashtra Board Class 12 Economics Solutions Chapter 8 Public Finance in India

Find out (Textbook Page 73) :

Important Social Welfare Schemes in India.
Answer:

Name of the Scheme Date of Launch Main Objective
1. Atal Pension Yojana May 2015 A contribution based program for poor people to receive pension.
2. Deen Dayal Upadhyaya Grameen Kaushalya Yojana Sept. 2014 Providing gainful employment to rural Youth, through training.
3. Pradhan Mantri Gramin Awaas Yojana June 2015 Providing financial assistance to rural poor for their houses.
4. Integrated Child Development Services Oct. 1975 To tackle malnutrition and health problems in children below 6 years.
5. Midday Meal Scheme Aug. 1995 Lunch (free of cost) to school children on all working days.
6. Suraksha Bima Yojana May 2015 Accidental insurance with a premium of Rs. 12/- per year.
7.Rashtriya Krishi Vikas Yojana Aug. 2007 Provision for development of agriculture and its allied sector