Important Questions

Balbharti Maharashtra State Board Class 12 History Important Questions Chapter 11 India Transformed Part 1 Important Questions and Answers.

Maharashtra State Board 12th History Important Questions Chapter 11 India Transformed Part 1

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

Question 1.
On 1st January 1995, 123 nations together founded an organisation known as ____________
(a) United Nations Organisation (UNO)
(b) World Trade Organisation (WTO)
(c) SEATO
(d) I.C.A.R.
Answer:
(b) World Trade Organisation (WTO)

Question 2.
In 1998, with a view to provide support to farmers in difficult times, ____________ plan was started.
(a) Kisan Credit Card
(b) Kisan Housing Plan
(c) Kisan Employment Card
(d) National Farmer’s Bank
Answer:
(a) Kisan Credit Card

Question 3.
Under ____________ scheme, each family in rural areas was given assurance of at least 100 day’s work.
(a) Agriculture and Livestock Scheme
(b) Pradhan Mantri Peek Vima Yojana
(c) Jawahar Gram-Samruddhi Yojana
(d) Rashtriya Gramin Rojgar Hami Yojana
Answer:
(d) Rashtriya Gramin Rojgar Hami Yojana

Question 4.
____________ ranks the first in fish production while ____________ ranks the second.
(a) China, Turkey
(b) India, China
(c) India, Brazil
(d) China, India
Answer:
(d) China, India

Question 5.
The Government of India, knowing the importance of having roads in good conditions in the interior areas, started ____________ in 2000.
(a) Pradhan Mantri Gram Sadak Yojana
(b) National Highway Plan
(c) Golden Quadrilateral
(d) Metro Railway
Answer:
(a) Pradhan Mantri Gram Sadak Yojana

Question 6.
The 11th conference of BRICS was organised in ____________
(a) India
(b) China
(c) Brazil
(d) South Africa
Answer:
(c) Brazil

Question 7.
In 2008, India launched ____________ the first lunar probe.
(a) Aaryabhatt I
(b) Chandrayaan 1
(c) Mangalyan
(d) Earth 2
Answer:
(b) Chandrayan 1

Question 8.
In 1946, ‘United Nations’ declared the ____________ to be the fundamental human right.
(a) Right to Information
(b) Right to Freedom
(c) Right to Speech and Expression
(d) Right to Mercy
Answer:
(a) Right to Information

Question 9.
In 1990, ____________ started the movement called as ‘Majdoor Kisan Shakti’.
(a) Medha Patkar
(b) Arimdhati Roy
(c) Aruna Roy
(d) L.K. Kulwal
Answer:
(c) Aruna Roy

Question 10.
In 2001, ____________ started a movement in Maharashtra in support of ‘Right to Information’ Act.
(a) Anna Hazare
(b) Rahi Sarnobat
(c) Aruna Roy
(d) Arvind Kejriwal
Answer:
(a) Anna Hazare

Question 11.
The state of Jammu-Kashmir and Ladakh was given a special status by ____________ of the Constitution of India.
(a) Article 356
(b) Preamble
(c) Article 375
(d) Article 370
Answer:
(d) Article 370

Question 12.
In 1947, ____________ established ‘Jammu Praja Parishad’ party.
(a) Prem Nath Dogra
(b) Dr. Shyama Prasad Mukherjee
(c) Omar Abdulla
(d) Atal Bihari Vajpayee
Answer:
(a) Prem Nath Dogra

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

Question 1.

Group ‘A’	Group ‘B’
(a) Telangana	Telangana Rashtriya Samiti
(b) Jammu-Kashmir	Jammu Praja Party
(c) Jharkhand	Bhartiya Jharkhand Parishad
(d) Uttarakhand	Uttarakhand Parvatiya Rajya Parishad

Answer:
Jharkhand – All India Jharkhand Party

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

Question 1.
The Director of WTO who prepared a draft for the establishment of this organisation –
Answer:
Arthur Dunkel

Question 2.
This plan was launched by merging together ‘Rojgar Aashwasan Yojana’ and ‘Jawahar Gram-Samruddhi Yojana’ –
Answer:
Sampoorna Gramin Rojgar Yojana

Question 3.
The scheme which is implemented for the economic welfare of the farmer –
Answer:
Pradhan Mantri Vima Yojana

Question 4.
The programme which was launched for massive modernisation of cities in 2005 –
Answer:
Jnnurm-Jawaharlal Nehru National Urban Renewal Mission

Question 5.
The service which changed the very nature of the Indian Postal Service –
Answer:
Speed Post

Question 6.
Its mathematical potential was enormous because of which India entered the global computer market –
Answer:
Param-10000

Question 7.
The place where India conducted underground nuclear test two times to prove its nuclear strength –
Answer:
Pokhran in Rajasthan

Question 8.
The first female scientist to be elected as the General President of the 62nd Indian Science Congress Association –
Answer:
Asima Chatterjee

Question 9.
The war which was fought between India and Pakistan over the issue of intrusion of Pakistan military forces in Ladakh –
Answer:
Kargil War

Question 10.
The name of the operation given to the Kargil War –
Answer:
Operation Vijay

Question 11.
The first nuclear submarine was built in India –
Answer:
Strategic Strike Nuclear Submarine of Arihant Class

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

Question 1.
Several plans for rural development have been implemented, so that ____________
(a) the rural sector should not get neglected and the balance between rural and urban development be maintained
(b) the rural sector becomes richer than urban areas
(c) people could donate money for the development of the rural sector
(d) rural sector becomes richer than urban sector
Answer:
(a) the rural sector should not get neglected and the balance between rural and urban development be maintained

Question 2.
Rojgar Hami Yojana was started by the ‘Ministry of Commerce and Industry of the Government of India ____________
(a) to provide employment to urban youth
(b) to give pension to the retired army personnel
(c) to assure daily wages to the unemployed agricultural labourers
(d) to increase the employment rate in tribal areas
Answer:
(c) to assure daily wages to the unemployed agricultural labourers

Question 3.
The Government of India established a separate ‘Ministry of Disinvestment’ ____________
(a) to give credits to private firms
(b) to show sympathy towards private firms
(c) to invest more money in the government sector
(d) to take care of its disinvestment policy, i.e. the gradual withdrawal of governmental investment in the public sectors
Answer:
(d) to take care of its disinvestment policy, i.e. the gradual withdrawal of governmental investment in the public sectors

3. Complete the following concept map.

Question 1.

Answer:

Question 2.

Name of the State	Date of Formation
1. ………………….	1st November 2000
2. Uttarakhand	…………………………
3. ………………….	15th November 2000
4. Telangana	………………………….
5. Jammu-Kashmir	31st October 2019
6. Ladakh	………………………….

Answer:

Name of the State	Date of Formation
1. Chhattisgarh	1st November 2000
2. Uttarakhand	9th November 2000
3. Jharkhand	15th November 2000
4. Telangana	2nd June 2014
5. Jammu-Kashmir	31st October 2019
6. Ladakh	31st October 2019

4A. Write short notes.

Question 1.
BRICS
Answer:

• This organisation was established in 2006. Its name is formed by adopting the first letter of the names of the participant countries. The participant members are Brazil, Russia, India, China, and South Africa.
• This organisation was established with an aim of enhancing trade among these countries.
• The 11th conference of BRICS was organised in Brazil. The theme of this conference was ‘Economic Growth for an Innovative Future’.
• Subjects like technological co-operation, technology, and innovation, digital economy, international crime, financial scams were discussed.

Question 2.
GATT
Answer:

• During the times of the Second World War, many countries had adopted the policy of imposing various duties and taxes on imported goods, with a view to protecting their home markets.
• It resulted in declining in trade. A meeting was called in Cuba to discuss this problem, which was attended by 56 nations.
• It was decided to establish a permanent organisation to resolve the problems related to international trade. A legal agreement was signed by 23 nations on 30th October 1947, which is known as GATT. This agreement was the first multinational trade agreement.
• GATT gave priority to economic development through production and trade, to treat the member nation as ‘most favoured nation’.
• An annual meeting of the member countries of GATT used to be held in Geneva. It was attended by the representative of the member countries.
• Each country is entitled to one vote. Problems faced by individual nations regarding the difficulties of international trade were discussed in the meeting and the decision was based on these discussions.
• Later GATT became a part of the ‘World Trade Organisation’.

Question 3.
World Trade Organisation
Answer:

• On 1st January 1995, 123 nations together founded an organisation with the objective of opening the world for free trade. It was called World Trade Organisation (WTO). It’s a global trade organisation and India is a member of it.
• Arthur Dunkel, the Director-General of WTO, prepared a draft which has been fundamental to the establishment of the organisation. This draft is known as ‘Dunkel Draft’.
• The crux of this draft emphasis on trade is free from governmental custom duty and other restrictions. This approach is known as ‘liberalisation’.
• All participating countries agreed upon a set of rules and a premise common to all that would promote international trade.
• Provisions were made in the spheres of grants, exports-imports, foreign investments, reserved sectors, agriculture, technology, and the service sector.
• After becoming a member of WTO, India put a thrust on economic progress. The contribution of Prime Minister Narsimha Rao, Atal Bihar Vajpayee, and Manmohan Singh is very important in this aspect.
• The report published in 2006 has made a special mention of the increasing economic growth rate of India.

Question 4.
VVPAT
Answer:

• VVPAT means Voter Verified Paper Audit Trail.
• The Government of India started using this machine for the Nagaland Assembly Election in 2011.
• Since 2019, this device has been widely used for the Lok Sabha elections. The slip generated by the machine can be checked to determine whom you voted for.
• The voter sees the slip a few seconds after the vote. The voter can confirm his or her own vote through this machine.

Question 5.
Indian Science Congress Association.
Answer:

• This association was established on 15th January 1914 with the objective of promoting the scientific environment in India and publishing dissertations, research papers, and periodicals.
• In 1975, Asima Chatterjee became the first female scientist to be elected as the General President of the 62nd Indian Science Congress Association.

Question 6.
Speed Post
Answer:

• The Indian postal department started the service of speed post in 1986 which changed the nature of post service.
• This service was used by the majority of Indians, more than three crore letters and parcels were delivered from this service.
• The customer will get the message of successful delivery of their items.
• The postal department now offers courier services like passport delivery, business parcels, cash-on-delivery, logistics posts, and air freights.
• The post office even offers a packaging service. Over one lakh and fifty thousand post offices are offering the services like paying bills, sending festive cards and other objects.
• Since 2016, the postal department has started service of delivering Ganges water from Rishikesh and Gangotri at personal addresses.
• Buying personalized postage stamps with personal photographs and special schemes for philatelists are also available at ‘Post Shops’ opened at 80 post offices.

4B. Explain the following statements with reasons.

Question 1.
The service of ‘Speed Post’ changed the very nature of the Indian Postal Service.
Answer:

• The service of ‘Speed Post’ was started by the Indian Postal Department’ in 1986. Many people take advantage of this service, to the tune of more than three crores of letters and parcels is being delivered every month.
• The postal department sends a message of successful delivery on the mobile phone of the sender. This facility has made the speed post service more reliable.
• In addition, the postal department now offers courier services like delivery of passport, business parcel, cash-on-delivery, logistics post, and air freights.
• Now the post office offers the packaging service at an extra charge. This has increased the business of the postal department.
• It also offers services like paying various bills, sending festive greetings cards, and similar objects. The postal department has started a very novel service since 2016 of delivering Ganges water (Ganga Jal) at personal addresses from Rishikesh and Gangotri.
• Along with its facilities like buying personalized postage stamps with a personal photograph, buying newly issued postage stamps at philatelic centers, special schemes for philatelists are available at ‘post-shops’ opened at 80 post offices.
• Special limited issues of artistic postal stamps are published by the postal department in order to fulfill the requirement of philatelists.
• In this way, the service of speed post changed the very nature of the Indian postal service.

5. Answer the following questions in detail.

Question 1.
Explain India’s progress in the field of science and technology.
Answer:

• A supercomputer named ‘Param-8000’ was created with the help of C-DAC (Centre for Development of Advanced Computing, Pune. In 1998, an advanced version of ‘Param-8000’ was made which was named ‘Param-10000’.
• Its mathematical potential was enormous because of which India entered the global computer market. In 1999, India created a further version of ‘Param-10000’ which was named ‘Parampadma’. In 2003, ‘Parampadma Super Computer’ was dedicated to the nation.
• The central government’s favourable policies for the software industry, the foresightedness of Indian entrepreneurs, the nationwide spread of computer and information technology, computer engineers who are proficient in the use of the English language resulted in an increase in the Indian export of software.
• In 1995, internet services began in India. In 2004, Tata Consultancy Services was the biggest firm in Asia providing software services. Pune and Bengaluru were developed as IT hubs. Indian IT engineers are great in demand all over the world.
• In the field of science, to prove its nuclear strength, India conducted an underground nuclear test. The Indian satellite, ‘Oceansat-1’ launched and entered orbit in 1999.
• In 2000, ‘Bharat Sanchar Nigam Ltd’ (BSNL) was established to provide services like mobile phones, internet, and broadband.
• In this way, India achieved lots of progress in the field of science and technology.

Question 2.
Explain different Government schemes related to agriculture.
Answer:
According to the 2011 census, nearly 54% of India’s population is related to agriculture and agro related sector. The Government of India introduced different schemes for the progress of the agricultural sector, these schemes are as follows:

• The ‘Soil Health Card’ aims at increasing soil fertility and agricultural production.
• Pradhan Mantri Krishi Sinchan Yojana started for giving priority to water supply and irrigation facilities.
• Krishi Vikas Yojana aims at organic cultivation and increases farmer’s income.
• Pradhan Mantri Vima Yojana is implemented for the economic welfare of farmers and given the emphasis on animal husbandry, fisheries, agriculture research, and education. It also focuses on developing agriculture, co-operative establishment, and work for farmer’s welfare.
• In 2007, a national policy for farmers was adopted. If there is crop failure because of things like natural calamities, epidemics, or adverse climate, the farmers get compensated through Pradhan Mantri Peek Vima Yojana.
• Research Institute of Agricultural Sciences is supported through Indian Council for Agricultural Research. Agricultural exhibitions are organized for farmers.
• Indigenous seeds and indigenous breeds of cattle and poultry farming of indigenous variety is given priority. Goat keeping (Sheli Palan) is encouraged as an occupation.
• The ‘National Livestock Mission’ was established in 2014-15 and since then there is a rapid growth in the agricultural sector. India ranks second in fish production after China ranks first.

6. Answer the following question with the help of the given points.

Question 1.
Explain the achievement of India in the defense field.
(a) Operation Vijay
(b) Modernisation of Indian army
(c) Make in India
(d) Practice session with different countries
Answer:
(a) Operation Vijay: In 1999, Pakistan intruded Kashmir. This intrusion started a war between India and Pakistan. This war was fought in the Kargil-Drass area in Ladakh. Hence, it is known as the “Kargil War.” It is also referred to as ‘Operation Vijay’ by the Indian army. ‘Operation Vijay’ was successful and India emerged victorious in it.

(b) Modernisation of the Indian army:

• This war alerted the Indian authorities for the modernization of the Indian military. The process of updating the military, equipment, and arms, training, etc. were further intensified.
• India is the sixth country in the world to develop indigenous technology for building nuclear submarines. In 2009, India successfully built a ‘Strategic Strike Nuclear Submarine’ of the ‘Arihant class’ with the help of Russia.

(c) Make in India:

• The Government of India emphasized indigenous technology (Make in India) on recruiting women officers in the military and also on combined exercise with militaries of other countries. Women can join eight sections of the Indian army through Union Public Service Commission.
• There is an increasing focus on the exchange of the latest technology, to fight terrorism, augment our own competencies, and optimum use of modern technology for ending terrorism.

(d) Practice session with different countries: The practice session and exercise with the armies of different countries were arranged to fight terrorism. The exercise with the Oman military, Mongolian army, Sri Lankan army, and Russian army was arranged.

Question 2.
Explain the reorganization process of the states.
(a) Chhattisgarh
(b) Uttarakhand
(c) Jharkhand
(d) Telangana
(e) Jammu-Kashmir and Ladakh
Answer:
In 2000, new states were formed for the first time in India after the formation of lingual states in India.
(a) Chhattisgarh:

• Indian National Congress first put forward the demand for Chhattisgarh before independence but it was rejected by Fazal Ali Commission.
• The proposal of creating a separate state of Chhattisgarh was passed in the session of the Legislative Assembly of Madhya Pradesh in 1998.
• The state of Chhattisgarh was created by the initiative of the Government of India on 1st November 2000.

(b) Uttarakhand:

• Since 1930, the people of Garhwal and Kumaon were demanding a separate state.
• This demand was supported in the 1938 session of the Indian National Congress, however, Fazal Ali Commission ruled it out.
• The people started a movement for their demand in 1957. They also formed ‘Uttarakhand Parvatiya Rajya Parishad’ in 1973.
• In 1994, the people’s movement got intensified, hence, in recognition of popular sentiments, a bill was passed by Uttar Pradesh Legislative Assembly.
• The state of Uttaranchal, later renamed Uttarakhand, was formed on 9th November 2000.

(c) Jharkhand:

• In the year 1929, the demand for the separate state of Jharkhand was staged for the first time. It got intensified after the formation of the All India Jharkhand Party in 1947.
• An appeal was presented to the President and Prime Minister in 1973. The Bihar Legislative Assembly passed the bill ‘Jharkhand Area Autonomous Council’ in 1973. (JAAC).
• A bill providing for the division of Bihar and the creation of a separate state of Jharkhand was passed in the lower house of the parliament in August 2000 and accordingly, on 15th November 2000, a separate state of Jharkhand came into existence.

(d) Telangana:

• The state of Telangana was earlier an integral part of the state of Andhra Pradesh. A movement was started by ‘Telangana Rashtriya Samiti’ for the creation of a separate Telangana.
• In 2001, the Government of India announced the decision of the separate state of Telangana.
• The Parliament approved this demand in 2014 and on 2nd June 2014, the separate state of Telangana was formed.

(e) Jammu-Kashmir and Ladakh:

• Article 370 of the Indian Constitution gave a special status to the state of Jammu and Kashmir. In 1947, Prem Nath Dogra established the ‘Jammu Praja Parishad’ party. The motto of this party changed from ‘Ek Vidhan, Ek Pradhan, Ek Nishan’ to ‘Ek Desh me Do Vidhan, Do Pradhan, Do Nishan, Nahi Chalenge, Nahi Chalenge.
• This party demanded complete accession of Jammu-Kashmir to India but the party in power, National Conference rejected the demand.
• Dr. Shyama Prasad Mukherjee supported the demand for a complete merger. Recently in August 2019, the Government of India revoked article 370.
• From 31st October 2019, the state of Jammu and Kashmir was reconstructed as two separate Union Territories of Jammu-Kashmir and Ladakh.

Balbharti Maharashtra State Board Class 12 Economics Important Questions Chapter 2 Utility Analysis Important Questions and Answers.

Maharashtra State Board 12th Economics Important Questions Chapter 2 Utility Analysis

1. [A] Choose the correct option.

Question 1.
Form Utility increases when –
(a) dress stitched from cloth.
(b) change in the format of given material.
(c) river water diverted towards farm.
(d) pot made from clay.
Options :
(1) a, b, c
(2) b, c, d
(3) a, b, d
(4) a, b, c, d
Answer:
(3) a, b, d

Question 2.
Blood donation is an example of –
(a) place utility
(b) knowledge utility
(c) service utility
(d) form utility

Options ;
(1) a, b, c
(2) b, c, d
(3) a, b, d
(4) none of these
Answer:
(4) none of these

Question 3.
With an increase in consumption of commodity, MU curve –
(a) slopes downward
(b) goes upward
(c) turns backward
(d) shows negative slope
Options :
(1) a, d,
(2) a, b, c
(3) a, b,
(4) a, c, d
Answer:
(1) a, d,

Question 4.
After a point of satiety, any additional consumption of commodity results into –
(a) negative MU
(b) diminishing TU
(c) disutility
(d) maximum TU

Options :
(1) a, b, d
(2) a, b, c
(3) a, c, d
(4) None of these
Answer:
(2) a, b, c

Question 5.
Want satisfying power of a commodity is called –
(a) usefulness
(b) satisfaction
(c) happiness
(d) utility

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

Question 6.
Zero MU is described as
(a) disutility
(b) point of satiety
(c) dis-satisfaction
(d) maximum TU
Options :
(1) a, b
(2) b, d
(3) b, c, d
(4) a, b, c, d
Answer:
(2) b, d

(B) Complete the Correlation

(1) Fan in summer : Time utility :: Sweater in Shimla : …………..
(2) Additional Utility : Marginal utility :: Aggregate utility : …………..
(3) Maximum TU : Zero MU :: TU declines : …………..
(4) Measuring in numbers : …………..:: Higher or Lower level: Ordinal measurement
(5) Point of satiety : ………….. :: Beyond point of satiety: Dissatisfaction
(6) Transport of goods : ………….. :: Storage of goods : Time utility
(7) Want satisfying power : ………….. :: Use value of a commodity : Usefulness
(8) Homogeneity : Assumption of the law of DMU :: Hobbies : …………..
(9) Increases at a diminishing rate : Total Utility :: Goes on diminishing : …………..
(10) Consumer : To obtain maximum satisfaction :: …………..: To frame various economic policies
Answers:
(1) Place Utility
(2) Total Utility
(3) Negative MU
(4) Cardinal measurement
(5) Full satisfaction
(6) Place utility
(7) Utility
(8) Exception of law of DMU
(9) Marginal Utility
(10) Government

(C) Give economic terms.

(1) Want satisfying capacity of a commodity.
(2) Treatment given by a doctor to a patient.
(3) Goods sold by shopkeeper to consumer.
(4) Addition made to TU by consuming one more unit of a commodity.
(5) Aggregate of utilities derived from all units.
(6) Marginal utility becomes negative beyond the point of satiety.
(7) Utility created due to change in the structure of given material.
(8) A state of mind to feel happy.
(9) A feeling of lack of satisfaction.
(10) The urgency to satisfy want immediately.
Answer:
(1) Utility
(2) Service Utility
(3) Possession Utility
(4) Marginal Utility
(5) Total Utility
(6) Disutility
(7) Form Utility
(8) Satisfaction
(9) Want
(10) Intensity

(D) Find the odd word out:

(1) Form Utility, Time Utility, Date Utility, Place Utility.
(2) Rationality, Continuity, Reasonability, Indivisibility.
(3) Sum, Aggregate, Total, Additional.
(4) Disutility, Negative utility. Maximum TU, Declining TU.
(5) Diminishing, Declining, Developing, ; Decreasing.
(6) Miser, Drunkard, Power, Rational consumer.
Answer:
(1) Date utility
(2) Indivisibility
(3) Additional
(4) Maximum TU
(5) Developing
(6) Rational consumer

(E) Complete the following statements.

Question 1.
Utility depends upon ………………..
(a) intensity of want
(b) income of a consumer
(c) quality of a product
(d) cardinal measurement
Answer:
(a) intensity of want

Question 2.
When TU declines, MU ……………………………..
(a) is zero
(b) increases
(c) remains constant
(d) becomes negative
Answer:
(d) becomes negative

Question 3.
Consumer’s equilibrium is attained when
(a) MUX > Px
(b) MUX = Px
(c) MUX < Px
(d) MUX = zero
Answer:
(b) MUX = Px

Question 4.
Electricity can be used in Fan, TV, iron, computer, etc. because utility is ……………
(a) subjective concept
(b) multi-purpose
(c) basis of demand
(d) morally colourless
Answer:
(b) multi-purpose

Question 5.
The sum of all marginal utilities from the consumption of a commodity is called ………………
(a) place utility
(b) additional utility
(c) total utility
(d) time utility
Answer:
(c) total utility

[F] Choose the wrong pair :

I.

Group ‘A’	Group ‘B’
1. Prof. Marshall	Law of DMU
2. Total utility	Utility from last unit
3. Cardinal measurement	Assumption of law of DMU
4. Service utility	Knowledge by teacher

Answer:
Wrong pair : Total utility – Utility from last unit

II.

Group ‘A’	Group ‘B’
1. Disutilit	Negative MU
2. Homogeneity	Identical unit
3. Law of DMU	Explained by Prof. Gossen
4. Maximum TU	Zero MU

Answer:
Wrong pair : Law of DMU
Explained by Prof. Gossen

[G] Choose the correct pair :

I.

Group ‘A’	Group ‘B’
1. Total utility	(a) Point of Satiety
2. Zero MU	(b) Furniture from wood
3. Time utility	(c) Aggregate of utilities
4. Form utility	(d) Apples for Kashmir
	(e) Organ donation

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

II.

Group ‘A’	Group ‘B’
1. Ordinal measurement	(a)Maximum TU
2. Principles of Economics	(b) MUX>PX
3. Point of satiety	(c) Prof. Alfred Marshall
4. Consumer’s equilibrium	(d) Grading of utility
	(e) MUX = PX

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

2.[A] Identify and explain the concept from given illustrations.

Question 1.
Tanvi took umbrella while going out as it started raining.
Concept: Time utility.
Explanation : When Utility of a commodity increases during particular time period, it is called time utility.
Tanvi is using umbrella, when it is raining Ans. so, it is an example of time utility.

Question 2.
A goldsmith made a beautiful golden necklace.
Answer:
Concept: Form utility.
Explanation : When utility is created due to change in the form of given material it is known as form utility.
So, furniture from wood, dress from cloth, jewellery from gold, etc. are examples of form utility.
Thus, necklace made from gold is an example of form utility.

Question 3.
Deepak purchased bricks and transported to Thane at his construction site.
Answer:
Concept : Place utility.
Explanation : When utility arises due to change in the place of its utilisation, it is called place utility.
Transport of goods creates place utility. In this example, bricks are transported from place of production to place of utilization. So it is an example of place utility.

Question 4.
Mugdha bought raw mangoes and made pickle from it.
Answer:
Concept: Form utility.
Explanation : When utility increases due to change in the shape, structure or form of material, it is called form utility. So, pickle made from raw mangoes, is an example of form utility.

Question 5.
Aditi went to Beauty Parlour to cut her hairs.
Answer:
Concept: Service utility.
Explanation : When service is provided by one person to another, it is called service utility.
It includes services rendered by professionals like doctors, lawyers, teachers, etc.
In this case, a beautician has given service to Aditi.
So, it is an example of service utility.

(B) Distinguish between

Question 1.
Utility and Usefulness.
Answer:

Utility	Usefulness
1. Utility is the capacity of a commodity to satisfy human wants.	(a) Anything (goods or services) are useful if they satisfy human want and generate human welfare.
2. A product may have utility irrespective of the commodity is useful or harmful, desirable or undesirable.	(b) A product is useful only when it is desirable or beneficial and does not do any harm to a person.
3. All commodities have utility such as car, clothes, even harmful products like drugs, liquor, cigarettes, narcotics, etc.	(c) Products such as food items, medicine, clothes, etc. are useful. Also services such as education, recreation are useful to people.
4. The term utility is subjective in nature as it changes from person to person, from place to place and from time to time.	(d) The term usefulness is absolute in nature, it never changes.

Question 2.
Utility and satisfaction.
Answer:

Utility	Satisfaction
1. Utility is a want satisfying capacity possessed by a commodity.	(a) Satisfaction is actual realisation from consumption of a commodity.
2. It is what the commodity possesses.	(b) It is what the commodity gives.
3. It is a means.	(c) It is an end.
4. It is expected satisfaction before consumption.	(d) It is actual realisation which comes after consumption.

Question 3.
Place Utility and Time Utility.
Answer:

Place Utility	Time Utility
1. Place utility is created by changing the place of utilisation.	(a) Time utility is created by changing the time of utilisation.
2. Transporting goods from one place to another, generally from place of abundance to place of scarcity, from place of manufacturing to place of consumption (Market), etc.	(b) Storing of goods during abundance and releasing them during scarcity or goods are warehoused from time of production to time of consumption.
3. All types of transport service create place utility.	(c) Warehousing service create time utility.
4. E.g. Food grains from village farm are sold in city markets.	(d) E.g. Wheat stored during harvest time and released during off season.

Question 4.
Total Utility and Marginal Utility.
Answer:
Total Utility :

1. Total utility is the sum total of utilities derived from the consumption of all units in a given stock of a commodity.
2. TU =Σ MU
3. TU increases but at a diminishing rate.
4. At point of satiety TU is maximum.
5. After point of satiety TU starts diminishing.
6. Numerical value of TU is always positive.
7. TU indicates value-in-use.
8. When TU is maximum, the MU is zero.

Marginal Utility :

1. Marginal utility is the additional utility derived from consuming additional unit of a commodity.
2. MU_n = TU_n – TU_n-1
3. MU continuously diminishes.
4. At point of satiety MU is zero.
5. After point of satiety MU becomes negative.
6. Numerical value of MU can be positive, negative or zero.
7. MU indicates value-in-exchange.
8. When the MU is maximum the TU is minimum.

Question 5.
Form Utility and Service Utiliity.
Answer:
Form Utility :

1. Form utility arises when the structure of given material changes.
2. Furniture made out of wood is an example of form utility.
3. It is related to material welfare.
4. Form utility is mainly created by artisans like tailor, carpenter, etc.

Service Utility :

1. It arises when service is rendered by one person to another.
2. Knowledge given by teacher to student is an example of service utility.
3. It is related to non-material welfare.
4. Service utility is mainly created by professionals like doctor, lawyers, etc.

Question 6.
Knowledge Utility and Possession Utility.
Answer:
Knowledge Utility:

1. Knowledge utility arises when a person acquires knowledge regarding a product.
2. Use of mobile, computer, etc. creates knowledge utility.
3. In this case, a consumer is interested to know various functions of product.
4. Knowledge utility increases due to utilisation.

Possession Utility:

1. Possession utility arises when the ownership of a product is transferred from one person to another.
2. Sale and purchase of goods creates possession utility.
3. In this case, a consumer is interested to satisfy his wants.
4. Possession utility increases due to demand.

Question 7.
Form Utility and Time Utility.
Answer:
Form Utility :

1. Form utility arises when the structure of given material changes.
2. E.g. Furniture made out of wood.
3. Technology and intelligence creates form utility.

Time Utility:

1. Time utility is created by changing the time of utilisation.
2. E.g. Wheat stored during harvest season and released during off season.
3. Warehousing creates time utility.

3. Answer the following questions:

Question 1.
Critically evaluate the law of Diminishing Marginal Utility.
OR
Explain the limitations or shorcomings of law of DMU.
Answer:
Critical evaluation of the Law of DMU is as follows:
(1) Unrealistic Assumptions : The law of DMU is based upon some unrealistic assumptions like homogeneity, continuity, rationality, constancy, etc.
In reality, it is very difficult to fulfil all these ssumptions at a time.

(2) Cardinal Measurement – not possible : The law assumes that, utility is cardinally measurable. It is necessary for the law to express schedule indicating MU and TU. It helps to add, subtract and compare utilities, In the real sense, utility is a psychological concept so it cannot be measured cardinally i.e. in numbers.

(3) Not applicable to Indivisible Goods : The law assumes divisibility. So it is not applicable to indivisible or bulky goods like car, T.V. set, house, etc. which are not divisible.
It is not possible to compare MU from commodity which are normally purchased, once in a life time.

(4) Constant MU of Money: The law assumes that MU of each unit of money is constant. But, in reality, MU of money declines as its stock increases.
Critics also argue that MU of money differs from person to person. It is affected by changes in price level, stock of money, rate of interest, etc.

(5) Restricted to satisfaction of Single Want : The law of DMU has limited applicability. It analyses the satisfaction derived from single want.
In reality, human wants are multiple in nature i.e. a person has to satisfy many wants at a time.
Though, law of DMU is criticized, it is important and popular in economics, because it explains economics behavior of a rational consumer.

Question 2.
Explain the significance importance of Law of Diminishing Marginal Utility.
Answer:
The law of DMU has universal applicability so it is an important law in economics.
Importance or significance of the law of DMU is as follows :

(1) Useful to Consumers : The law is important to the consumer because it helps the consumer to maximize his satisfaction.
It creates awareness among the consumers 5 to get maximum satisfaction with limited resources.

(2) Useful to the Government : The law ; guides the government in framing various economics policies like progressive tax policy, pricing policy, trade policy, import export policy, etc. so as to maximise
economic welfare of the society.

(3) To understand Paradox of Value : The law of DMU helps us to understand paradox of values, i.e. value-in-use and value-in-exchange.

Some goods have more value-in-use but less value-in-exchange like air, water, sunlight, etc. while some goods have less value-in-use but high value-in-exchange like gold, diamond, etc. Greater value-in-use denotes high total utility whereas, more value in exchange denotes higher marginal utility.

(4) Basis of Law of Demand : The law of demand is based on the law of DMU.
A consumer compares MU with price of a commodity. He purchases till MU equals price. When a consumer buys more and more units of a commodity, his MU diminishes. It means, a consumer would buy more only at a lower price which is a basis of law of demand.

Question 3.
Explain the features / characteristics of Utility.
Answer:

(1) Multi-purpose : Utility is said to be multi-purpose because a commodity can be used to satisfy several wants. It can satisfy wants of more than one person at a time.
E.g. milk has multi-purpose utility. It can be used to make coffee, ice- cream, milk-shake, tea, etc.
Similarly, in case of commodities like coal, electricity, etc. utility is multi-purpose.

(2) Relative Concept : Utility is a relativeconcept because it is related to time, place and person. It changes from time to time, place to place and from person to person.
E.g. fan has greater utility in summer than
winter, sweater has greater utility in cold regions.

(3) S ubjective Concept: Utility is a subjective term. It varies from person to person. It differs on the basis of taste and preferences, habits, likes, dislikes, profession, situation, etc. e.g. chalk has utility for teachers and not for doctors. Fish has utility for non¬vegetarian person etc.

(4) Basis of Demand : A person will demand only those commodities which give him utility. No utility means no demand, so utility is the basis of demand.
E.g. a student demands a book because he has utility of a book. Thus, utility creates demand for a product.

(5) Intensity of Want: Utility of a commodity is greater if a want is most urgent, whereas, utility is less if the intensity of want is less. Utility diminishes when the urgency of want declines. E.g. a thirsty person gets more utility from the first sip of water than the next one.

(6) Measurement of Utility : Utility is a psychological concept. So utility cannot be measured cardinally, that is, in numbers. Ordinal measurement, i.e. higher or lower level of utility can be measured.
E.g. a hungry person may experience higher or lower utility after having food. However, X it is assumed that cardinal measurement of i utility is possible, for the validity of the law 5 of diminishing marginal utility.

(7) Utility is morally Colourless : Utility is ethically neutral concept. It has no moral consideration. It is morally colourless. It does not consider whether a want is good or bad, moral or immoral, desirable or undesirable. A commodity can be used to satisfy any kind of want. It can be useful or harmful.
E.g. a knife can be used to cut vegetables, as well as, it can be also used to harm somebody. Thus, utility does not have ? ethical consideration.

(8) Utility differs from Usefulness : Utility and usefulness are different concepts. Utility means want satisfying capacity of a commodity whereas usefulness means use value of a commodity.
Some commodities have both, utility and usefulness. E.g. watch, pen, etc.
However, some commodities have utility but no usefulness.
e.g. cigarette has utility for those who smoke but it is not at all useful as it has an adverse effect on human health.

(9) Utility differs from Pleasure : There is a difference between utility and pleasure, Certain commodities which possess utility, may not give pleasure.
E.g. a course of injections given to patient, has utility because it cures him however, it may not give pleasure or happiness as it is a painful experience.

(10) Utility differs from Satisfaction : Utility and satisfaction, interrelated concepts but, utility is not same as satisfaction. Utility refers to power of a good to a satisfy human want. Satisfaction is a state of mind to feel happy.
Utility arises before the consumption of a commodity. However, satisfaction is received after the consumption of a commodity. It is because, utility is anticipated satisfaction, whereas, satisfaction is actual realisation.
Utility is related to commodity but satisfaction is experienced by a person.

Question 4.
What are the different types or forms of utility?
Answer:
Types of utility :

1. Form utility
2. Place utility
3. Service utility
4. Knowledge utility
5. Possession utility
6. Time utility

Types of utility are explained as under:

(1) Form utility : It arises due to a change in the shape of an object. When utility is created because of change in the structure or form of a given material, it is known as form utility.
E.g. furniture made of wood, dress from cloth, jewellery from gold, etc.

(2) Place utility : Utility changes from place to place. When utility arises due to change in the place of its utilisation, it is called as place utility. Transport of goods and services creates place utility.
E.g. utility of river water increases when it is diverted towards farm.
Shawls have greater utility in cold regions than any other place.

(3) Service utility : When service is provided by professionals to another person, it creates service utility. It includes services rendered by Doctor to patient, Lawyer to client, Teacher to student, etc.

(4) Knowledge utility : In this case, utility increases when a person acquires knowledge regarding specific product.
For example, when a consumer knows about various functions of a laptop, its utility increases, Similarly, use of mobile, computer, sewing machine etc. creates knowledge utility.

(5) Possession utility : It is related to the ownership of goods. When the ownership of a product is transferred from one person to another, it creates possession utility.
E.g. transfer of ownership of food grains from farmer to consumer.
Thus, possession utility arises when goods are transferred from sellers to buyers.

(6) Time utility : When utility of a commodity changes due to change in time period, it is called time utility.
E.g. an umbrella has greater time utility during rainy season.
Time utility also takes place when goods are stored and used as per the requirement. Time utility varies from season to season or from situation to situation.
So, blood donation creates time utility.

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

Question 1.
Utility is a subjective concept.
Answer:
Yes, I agree with this statement.
It is a psychological concept. It is the mental assessment of a commodity. So utility differs from person to person because of difference in taste, preference, likes and dislikes of a person e.g., Chalks have more utility to a teacher than a student.

Question 2.
Utility and happiness are different.
Answer:
Yes, I agree with this statement.

• Utility is want satisfying capacity of a commodity and happiness is an enjoyable experience.
• When a commodity has utility it may not necessarily give happiness or pleasure or enjoyable experience to consumer. E.g., no one enjoys taking an injection or bitter medicine but they have utility to a patient.

Question 3.
Utility is ethically neutral.
OR
The concept of utility has no moral or ethical consideration. (Feb. ‘16)
Answer:
Yes, I agree with this statement.

• Utility is morally colourless concept.
• As long as a commodity possesses the want satisfying power, it has utility for a person irrespective of the fact that the commodity is good or bad, desirable or undesirable, moral or immoral.
• e.g., Knife has the utility for both a killer (for stabbing) and a housewife (as kitchen appliance).
• Similarly liquor has utility to a drunkard but from ethical point of view their consumption may be undesirable .

Question 4.
Utility means not usefulness.
Answer:
Yes, I agree with this statement.
Utility indicates the power of a good to satisfy human wants irrespective of whether it is good or bad or harmful. Whereas usefulness means that the commodity is beneficial or desirable. A commodity may have utility but may not be useful e.g., Cigarette is injurious to health. It is not useful but it has utility to a smoker.

Question 5.
Utility is a psychological term.
Answer:
Yes, I agree with this statement.

• Utility relates to consumer’s mental attitude and experience regarding a given commodity.
• So utility differs from person to person.
• The utility of a good cannot be the same for all individuals.
• This is due to difference in taste, preference, likes and dislikes.
• E.g. fish has utility to non-vegetarian but not to a pure vegetarian.

Question 6.
Utility depends on urgency of want Or Utility depends upon intensity of want.
Answer:
Yes, I agree with this statement.

• Utility for a commodity is dependent on the intensity of need for that commodity.
• If a want is very intense or urgent for the commodity concerned then he will find more utility from the commodity.
• As the intensity of want falls, its utility diminishes. For example first slice of bread will give more utility to a hungry person than the 2nd or 3rd slice of bread. Books have more utility to students just before exams and no utility after the exams.

Question 7.
Utility of same commodity for two c persons is different.
Answer:
Yes, I agree with this statement.

• Utility is affected by personal likes, dislikes, preference, habits, etc.
• Utility changes from person to person. It is subjective concept.
• It is psychological feeling and subject to change from person to person.
• E.g. Cigarette has utility to a smoker but it has no utility to non-smoker.
• Marginal Utility diminishes.

Question 8.
Marginal Utility diminishes.
Answer:
Yes, I agree with this statement.

• Marginal utility diminishes with increase in consumption of a commodity.
• When the stock of the commodity increases the intensity of want decreases so the utility diminishes.
• There is an inverse relation between the stock of commodity and.MU.
• The law of DMU states “The additional benefit which a person derives from a given increase in the stock of a
• thing, diminishes with every increase in the stock that he already has.

Question 9.
Utility can be measured cardinally.
Answer:
No, I do not agree with this statement.

• Utility being a psychological concept it cannot be quantified in numbers such as 10, 20, 30 so on.
• It is a feeling so can be only be expressed ordinally.
• It can be expressed as 1st, 2nd, 3rd and so on, in order of preference or can be graded.
  It is intangible.
  But Marshall has assumed that utility can be measured in cardinal numbers to explain the law of Diminishing Marginal Utility but different concepts.

Question 10.
Utility and satisfaction are different concepts.
Answer:
Yes, I agree with this statement.

• Utility is the quality possessed by the commodity before consumption of the goods. It is expected satisfaction.
• Satisfaction is actual realisation, which is derived after the consumption.
• Utility is the means and satisfaction is the end result of consumption.
• Utility is what commodity possesses whereas satisfaction is what we experience after consumption.
• Utility and satisfaction are synonyms but different concepts.

Question 11.
It is more appropriate to tax the rich in excess than the poor.
Answer:
Yes, I agree with this statement.

• The law of diminishing marginal utility supports the progressive tax system.
• The rich are taxed more because they can easily bear the burden of heavy tax as they have more stock of money. Therefore, they find less MU in money.
• The poor have less stock of money. Therefore, they find more MU in money. So they are taxed less.
• In this way the Government follows the “Principle of Equity” while taxing the people.
• Also indirect tax on mass consumption goods or necessaries are less compared to the luxury goods.

Question 12.
The hobby of stamp collection is not a real exception to the law of Diminishing Marginal Utility.
Answer:
Yes, I agree with this statement.

• It is wrongly believed that the hobby of stamp collection is an exception to the law of DMU.
• It is observed that every successive stamp collected gives more MU to the person.
• But in reality a person collects different types of stamps. Thus it violates the assumption of homogeneity and continuity.
• If a person is asked to collect the same type of stamp again and again the MU will= diminish. Therefore, the hobby of stamp collection is not a real exception to law of DMU. It is an apparent exception.

Question 13.
There are no real exceptions to the law of DMU.
Answer:
Yes, I agree with this statement.
[Note : For answer refer Q.6. (1) (D)
Schedule and Diagram :
The law can be explained with the help of following schedule and diagram :

Units of Commodity	Marginal Utility (M.U)
1	10
2	8
3	6
4	4
5	2
6	0
7	-2

The above given schedule shows that MU goes on diminishing with an increases in units of commodity consumed.
Graphical Presentation :

In the above given diagram, X-axis indicates units of commodity and Y-axis measures marginal utility.
Various points are plotted on the graph which indicates MU derived from each unit of commodity consumed.
When all these point are joined, we get MU curve. It slopes downward from left to right. It shows that MU diminishes as consumption of a commodity increases.
The shaded portion of the diagram shows negative utility. It is because, beyond a certain level, further consumption of a commodity results into disutility.

Question 14.
Law of DMU is important in practice.
Answer:
Yes, I agree with this statement.
The law of DMU has universal applicability so it is an important law in economics. Importance or significance of the law of DMU is as follows :

(1) Useful to Consumers : The law is important to the consumer because it helps the consumer to maximize his satisfaction.
It creates awareness among the consumers 5 to get maximum satisfaction with limited resources.

(2) Useful to the Government : The law ; guides the government in framing various economics policies like progressive tax policy, pricing policy, trade policy, import export policy, etc. so as to maximise
economic welfare of the society.

(3) To understand Paradox of Value : The law of DMU helps us to understand paradox of values, i.e. value-in-use and value-in-exchange.
Some goods have more value-in-use but less value-in-exchange like air, water, sunlight, etc. while some goods have less value-in-use but high value-in-exchange like gold, diamond, etc. Greater value-in-use denotes high total utility whereas, more value in exchange denotes higher marginal utility.

(4) Basis of Law of Demand : The law of demand is based on the law of DMU.
A consumer compares MU with price of a commodity. He purchases till MU equals price. When a consumer buys more and more units of a commodity, his MU diminishes. It means, a consumer would buy more only at a lower price which is a basis of law of demand.

Question 15.
(i) When the MU is zero, TU is maximum.
Answer:
Yes, I agree with this statement.
OR
(ii) When MU is zero, TU diminishes.
Answer:
No, I do not agree with this statement.

• When MU is zero the TU is the maximum.
• MU is the additional utility derived from the consumption of last unit of commodity.
• The TU is the sum of utilities derived from all units of consumption.
• The inter relationship between MU and TU can be explained with the help of the schedule.
  

  Units of Commodity	Marginal Utility (M.U)
  1	10
  2	8
  3	6
  4	4
  5	2
  6	0
  7	-2

• From the schedule it can be observed that when a consumer keeps on consuming the same commodity continuously the MU diminishes and TU increases but at a diminishing rate.
• At the point of satiety i.e., unit 5 the consumer enjoys maximum satisfaction. Therefore, the MU becomes zero and TU reaches maximum i.e., 28 units.
• Here the consumer is fully satisfied. If the consumer keeps on consuming further units of the commodity after satiety, he derives dissatisfactions. Therefore, the MU becomes Negative and TU also starts falling or decreasing.
• Thus, at the point of full satisfaction MU is zero and it intersects the ‘X’ – axis and TU is maximum

Question 16.
The law of DMU could be explained type of stamp again and again the MU will with example and diagram.
OR The law of DMU can be explained with schedule and graph.
Answer:
Yes, I agree with this statement.
Schedule and Diagram :
The law can be explained with the help of following schedule and diagram :

Units of Commodity	Marginal Utility (M.U)
1	10
2	8
3	6
4	4
5	2
6	0
7	-2

The above given schedule shows that MU goes on diminishing with an increases in units of commodity consumed.
Graphical Presentation :

In the above given diagram, X-axis indicates units of commodity and Y-axis measures marginal utility.
Various points are plotted on the graph which indicates MU derived from each unit of commodity consumed.
When all these point are joined, we get MU curve. It slopes downward from left to right. It shows that MU diminishes as consumption of a commodity increases.
The shaded portion of the diagram shows negative utility. It is because, beyond a certain level, further consumption of a commodity results into disutility.

Question 17.
The diminishing Marginal Utility Curve goes upwards means it has a positive slope
Answer:
No, I do not agree with this statement.
(a) The MU curve slopes downwards from left to right and it has a negative slope as shown in the diagram.

(b) The MU curve has a negative slope which indicates inverse relationship between the stock of the commodity and MU.
(c) The law states that the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has.
(d) It means that the MU goes on diminishing with an increase in the stock of commodity consumed.
(e) It means that the intensity of want decreases.
(f) With increase in stock of commodity, the satisfaction derived decreases, so it has a negative slope.

Question 18.
The law of DMU depends upon assumptions.
Answer:
Yes, I agree with this statement.
OR
Homogeneity is the only assumption to law of DMU.
Answer:
No, I do not agree with this statement.

Assumptions of the law of DMU :
Assumptions are those conditions which are necessary for the validity of the law. They are as follows :

• Cardinal Measurement: The law assumes that utility can be measured cardinally i.e. in numbers. So, it is possible to express and compare the utility derived from each unit of commodity consumed.
• Homogeneity : It is assumed that all the units of commodity consumed are homogeneous or same. They are identical in case of size, shape, taste, colour, flavor, etc.
• Rationality : A consumer is assumed to be rational. His behaviour is normal from economic’s point of view. It means, he tries to get maximum satisfaction.
• Continuity : All units of commodity are consumed successively, one after another, without time interval.
• Reasonability : The law assumes that, all the units of commodity consumed are reasonable in size. The unit of measurement is neither too big nor too small e.g. a cup of tea, glass of water, etc.
• Divisibility : A commodity is assumed to be divisible. So it is possible to divide the units of commodity in a proper size.
• Constancy : It is assumed that related factors like income, taste and preference, habits, choice of a consumer remain constant. MU of money is also assumed to be constant.
• Single want: A given commodity is used to satisfy a single want of a person. So that it is possible to experience full satisfaction from a single want.

Question 19.
Marginal Utility and Total Utility are same.
Answer:
No, I do not agree with this statement.
MU and TU are different.
Total Utility :

1. Total utility is the sum total of utilities derived from the consumption of all units in a given stock of a commodity.
2. TU =Σ MU
3. TU increases but at a diminishing rate.
4. At point of satiety TU is maximum.
5. After point of satiety TU starts diminishing.
6. Numerical value of TU is always positive.
7. TU indicates value-in-use.
8. When TU is maximum, the MU is zero.

Marginal Utility :

1. Marginal utility is the additional utility derived from consuming additional unit of a commodity.
2. MU_n = TU_n – TU_n-1
3. MU continuously diminishes.
4. At point of satiety MU is zero.
5. After point of satiety MU becomes negative.
6. Numerical value of MU can be positive, negative or zero.
7. MU indicates value-in-exchange.
8. When the MU is maximum the TU is minimum.
   

Question 20.
There are no criticisms to the law of DMU.
Answer:
No, I do not agree with this statement.
Answer:
There are many criticisms / limitations.
Critical evaluation of the Law of DMU is as follows:

• Unrealistic Assumptions : The law of DMU is based upon some unrealistic assumptions like homogeneity, continuity, rationality, constancy, etc.
  In reality, it is very difficult to fulfil all these assumptions at a time.
• Cardinal Measurement – not possible : The law assumes that utility is cardinally measurable. It is necessary for the law to express schedule indicating MU and TU. It helps to add, subtract and compare utilities, concept so it cannot be measured cardinally i.e. in numbers.
• Not applicable to Indivisible Goods : The law assumes divisibility. So it is not applicable to indivisible or bulky goods like car, T.V. set, house, etc. which are not divisible.
  It is not possible to compare MU from commodity which are normally purchased, once in a life time.
• Constant MU of Money: The law assumes that MU of each unit of money is constant. But, in reality, MU of money declines as its stock increases.
  Critics also argue that MU of money differs from person to person. It is affected by changes in price level, stock of money, rate of interest, etc.
• Restricted to satisfaction of Single Want The law of DMU has limited applicability. It analyses the satisfaction derived from single want.

In reality, human wants are multiple in nature i.e. a person has to satisfy many wants at a time.
Though, law of DMU is criticized, it is important and popular in economics, because it explains economics behavior of a rational consumer.

Question 21.
Utility is a relative concept.
Answer:
Yes, I agree with this statement.
Relative Concept : Utility is a relative concept because it is related to time, place and person. It changes from time to time, place to place and from person to person.
E.g. fan has greater utility in summer than winter, sweater has greater utility in cold regions.

5. Study the following table / figures / passages and answer the questions :

Question 1.
Observe the given table and answer the questions:

Units of Com. ‘X’	MU	TU
1	12	12
2	8	20
3	5	25
4	3	28
5	0	28
6	-2	26

(1) Draw MU and TU curve with the help of given schedule.
Answer:

(2) What is TU at zero MU?
Answer:
T.U. is maximum, at zero MU.

(3) Complete the sentence :
With an increase in consumption, MU goes on diminishing and TU …..
Answer:
With an increase in consumption, MU goes on diminishing and TU goes on increasing at a diminishing rate.

(4) What happens to MU when TU falls?
Answer:
MU becomes negative when TU falls.

Question 2.
Observe the given table and answer the questions:

Units of Com. ‘X’	TU Units	MU Units
1	6	6
2	11	5
3	15	4
4	15	0
5	14	-1

(1) Draw TU and MU curve.
Answer:

(2) Fill in the blanks :
(a) When total utility is maximum marginal utility is ……………..
Answer:
When total utility is maximum marginal utility is zero.

(b) When total utility falls, marginal utility becomes ……..
Answer:
When total utility falls, marginal utility becomes negative.

6. Answer in detail:

Question 1.
Explain the relationship between MU and Price.
Answer:
The relationship between MU & Price helps to understand, how the law of DMU forms ’ the basis of law of demand.
It is a perfect example of application of law of DMU practically. In this case, MU is converted in terms of money to understand this relationship and the comparison between MU & price.

Let us assume that 1 unit of MU = ₹ 10/- Market price per unit of commodity x = ₹ 50/- The table given below, explains the relationship between MU and price. It helps to know consumers equilibrium.

The above given table indicates that a consumer purchase units of commodity ‘x’ one after another. 2nd column shows MU derived from each unit. It goes on diminishing with every unit of commodity consumed.
To compare MU with price, it is necessary to ) convert MU in terms of money.
Let us assume that, 1 unit of MU = ₹ 10/- So, units of MU multiplied by ₹ 10/- (as shown in column

Market price of each unit of commodity ‘x’ is ₹ 50/- (as shown in column 4)
Column 5 shows comparison between MU and price.
It is observed that, for the first and second unit, MU (in terms of money) is greater than the price paid for them it means MU_x > P_x.

So, a rational consumer will be willing to buy 1st and 2nd unit of commodity ‘x’.
At the 3rd unit a commodity ‘x’ MU equals ) the price. So, the consumer can also think of purchasing it. Here, MU_x = P_x.
But, in case of 4th and 5th unit, MU is less than price. Therefore, a rational consumer will not purchase these units because MU_x < P_x

The relationship between MU and price can be summarised as follows :

1. When MU is greater than price, a consumer is willing to buy those units. They are called Intra- Marginal units (MU_x > P_x).

2. When MU becomes equal to market price, a consumer can also think of buying that unit. It is called Marginal unit (MU_x = P_x = Consumer’s equilibrium).

3. When MU is less than price, a rational consumer is not willing to buy them. They are called Extra-marginal units (MU_x < P_x) Thus, a rational consumer attains equilibrium where MU_x = P_x.
The relationship between MU and price helps to understand the law of demand.

Question 2.
Explain the various concepts of Utility.
Answer:
There are two main concepts of utility :
Marginal Utility (MU)
Total Utility (TU)
They are explained as follows :

1. Marginal Utility (MU) : MU refers to the additional utility derived by a consumer from the last unit of a commodity consumed. In simple words, MU is the addition made by one more unit of a commodity consumed.

2. Total Utility (TU) : TU means the sum of utilities derived by a consumer from all units of commodity consumed.
It is an aggregate of utilities derived from all units.
Symbolically, it can be represented as follows :
MU = Marginal Utility
TU Total Utility
MU₁, MU₂ , MU₃, = Marginal Utilities
derived from each unit.
MU_n = Marginal utility of nth unit.
MU_n = TU_n -TU(_n-1)
TU_n = Total utility of nth unit.

TU(_n-1) = Total utility of nth previous unit.
TU_n = ΣMU_n or
TU_n = MU₁ + MU₂ + …………………. +MU_n
TU of nth unit = Summation of marginal utilities up to nth unit.

Question 3.
Explain the relationship between MU and TU.
Answer:
MU & TU are inter-related concepts but there is a difference between MU and TU because MU shows utility derived from each unit whereas, TU indicates summations of marginal utilities.
It can be explained with the help of following schedule –

The above given schedule indicates MU derived from each successive unit & TU – summation of MU’s.
On the basis of given schedule, MU curve and TU curve can be drawn, as shown in the following diagram.

In the given diagram X’ axis indicates units of commodity and ‘Y’ axis measures TU & MU.
MU curve slopes downward whereas; TU curve goes upward.
MU curve shows zero and negative level of satisfaction whereas, TU curve shows maximum level of satisfaction.
The relationship between MU and TU can be summarized as follows:

1. When the 1st unit of commodity is consumed, MU is equal to TU. (MU = TU)
2. From 2nd consumption, MU goes on diminishing and TU increases at a diminishing rate. (MU↓↓↓. and TU ↑↑↑)
3. At a full satisfaction level, MU becomes zero & TU reaches at maximum level. It becomes constant. It is called point of satiety. (MU zero, TU max^m)
4. After a point of satiety, any additional consumption of unit results into negative MU while TU starts declining.
   (MU —ve, TU↓)
5. If any unit of commodity consumed beyond the point of satiety, consumer experiences dissatisfaction.

Balbharti Maharashtra State Board Class 12 Economics Important Questions Chapter 7 National Income Important Questions and Answers.

Maharashtra State Board 12th Economics Important Questions Chapter 7 National Income

1. A. Choose the correct option:

Question 1.
At present National Income estimation is done by …………………
(a) Central Statistical Organization
(b) Finance Department
(c) National Income Committee
(d) Reserve Bank of India
Options :
(1) a, b and c
(2) c and d
(3) a and b
(4) only a
Answer:
(4) only a

Question 2.
National Income is the subject matter of ……………… economics.
(a) Micro
(b) Marco
(c) Managerial
(d) Business
Options:
(1) a and b
(2) only b
(3) only c
(4) None of these
Answer:
(2) only b

Question 3.
National income is a …………… concept
(a) static
(b) final
(c) flow
(d) reserve
Answer:
(a) static

Question 4.
The members of National Income Committee in 1949 were —
(a) Prof. P.C. Mahalanobis and Prof. D.R.Gadgil
(b) Prof. P.C. Mahalanobis and Kaushik Basu
(c) Abhijit Banerjee and Amartaya Sen
(d) Prof. P.C. Mahalanobis, D. R. Gadgil and Dr. V.KR.V. Rao
Answer:
(d) Prof. P.C. Mahalanobis, D. R. Gadgil and Dr. V.KR.V. Rao

Question 5.
According to National Income Committee, NI is ………………….
(a) volume of goods and services
(b) produce in one year
(c) goods and services counted without duplication
(d) all of these
Options :
(1) a and b
(2) a and c
(3) only a
(4) d
Answer:
(4) d

Question 6.
Statements incorrect with reference to A.C. Pigou definition –
(a) National income means national dividend
(b) Objective income of the community
(c) Income from abroad does not include
(d) Income from abroad in money term
Options :
(1) b and c
(2) only a
(3) only c
(4) all of these
Answer:
(3) only c

Question 7.
While measuring National Income value of ……………….
(a) all goods and services are considered
(b) final goods and services are considered
(c) only intermediate goods are considered
(d) none of these
Options :
(1) a and c
(2) only b
(3) a and b
(4) only d
Answer:
(2) only b

Question 8.
Net income from abroad includes
(a) Difference between export value and import value (X-M)
(b) Difference between receipts and payments made abroad (R-P)
(c) Difference between value of raw material and final goods
(d) None of these
Options :
(1) a and b
(2) b and c
(3) a and c
(4) only c
Answer:
(1) a and b

Question 9.
Three sector economy consists of ……………..
(a) households, business firms and industries
(b) households, business firms and government sector
(c) households, government and foreign sector
(d) all of these
Options :
(1) only a
(2) only b
(3) only c
(4) only d
Answer:
(2) only b

Question 10.
Which of the following is included in j four sector economy?
(a) Households, firms, industries and government
(b) Household, government, firms and organisation foreign sector
Options :
(1) only a
(2) c and d
(3) only d
(4) a and
Answer:
(3) only d

Question 11.
GDP (Gross Domestic Product) =
(a) C +1 + G + (X-M)
(d) GNP – depreciation
(c) GDP – depreciation
(b) C + I + G + (R-P)
Options :
(1) a
(2) b
(3) c
(4) d
Answer:
(1) a

Question 12.
GNP = C +1 + G + (X-M) + (R-P), R and P represents …………….
(b) R – receipts from abroad
(c) P – payments made abroad
(d) P – payments to government
Options :
(1) a and c
(2) b and c
(3) c and d
(4) a and d
Answer:
(2) b and c

Question 13.
Green Gross National Product (GNP) includes –
(a) Sustainable economic development
(b) Equitable distribution of benefits
(c) Promotes economic welfare
(d) All of these
Options :
(1) a and b
(2) b and c
(3) only c
(4) only d
Answer:
(4) only d

Question 14.
Value added approach is the difference between the value of ……………….
(a) Export and import
(b) Receipts and payment
(c) Inputs and final output
(d) None of these
Options :
(1) a and b
(2) b and c
(3) only c
(4) d
Answer:
(3) only c

Question 15.
Income method of measuring national income is the sum of …………………..
(a) Rent and profit
(b) Rent + Wages + Interest + Profit + MI + (X-M)
(c) C + I + G + (X-M)
(d) Interest + Wages
Options :
(1) a and d
(2) only b
(3) c and d
(4) b and c
Answer:
(2) only b

Question 16.
Transfer income includes ………………
(a) pension and scholarships
(b) gifts and donations
(c) donations and unemployment allowance
(d) all of these
Options :
(1) a and b
(2) b and c
(3) a and c
(4) d
Answer:
(4) d

Question 17.
WThile estimating National Income by income method the following precautions should be taken –
(a) transfer income should be ignored
(b) all unpaid services should be ignored
(c) income from sale of second hand goods should be ignored
(d) undistributed profits should be ignored
Options :
(1) a and b
(2) c and d
(3) a, b and c
(4) only d
Answer:
(3) a, b and c

Question 18.
In advance countries like USA and UK the ……………….. method of measuring NI is popular.
(a) Output Method / Product Method
(b) Income Method / Factor Cost Method
(c) Expenditure Method / Outlay Method
(d) None of these
Options :
(1) a and b
(2) only b
(3) b and c
(4) d
Answer:
(2) only b

Question 19.
Mixed Income (MI) refers to the income of ………………….
(a) Private and public sector
(b) Self-employed persons
(c) Sale of second hand goods
(d) All of these
Options :
(1) a
(2) b
(3) c
(4) d
Answer:
(2) b

Question 20.
There are many theoretical difficulties in the measurement of NI like –
(a) Transfer Payment
(b) Illegal Income
(c) Unpaid services
(d) All of these
Options :
(1) a and b
(2) b and c
(3) a and c
(4) d
Answer:
(4) d

Question 21.
There are many practical difficulties in the measurement of NI like –
(a) problem of double counting
(b) existence of non-monetize sector
(c) inadequate and unreliable data
(d) none of these
Options :
(1) a and b
(2) b and c
(3) a, b and c
(4) only d
Answer:
(3) a, b and c

Question 22.
National income is extremely useful for ……………..
(a) formulating national policies on employment, industry, etc.
(b) economic planning
(c) distribution of income
(d) all of these
Options
(1) a and b
(2) b and c
(3) a and c
(4) d
Answer:
(4) d

(B) Complete the correlation

1. Personal income : Micro economics :: National Income : …………….
2. Two sector economy : Household and business firms :: ……………. : Households, Business firms, Government and Foreign sector
3. Three sector economy :Y=C + I + G:: Four sector economy : …………….
4. (X-M) : ……………. :: (R-P) : difference between receipts and payment from abroad
5. …………….: GDP – Depreciation :: NNP : GNP – Depreciation
6. GNP : C + I + G + (X-M) + (R-P) :: ……………. : GNP – (net fall in stock of natural capital + pollution load)
7. ……………. : Value of final goods and service ::
   Value added approach : Difference between value of output and input
8. Output Method : Product Method :: ……………. Outlay Method
9. ……………. : Unpaid services :: Practical difficulty : Problem of double counting

Answer:

1. Marco economics
2. Four sector economy
3. Y = C + I + G + (X-M)
4. Difference between value of export and import
5. NDP
6. Green GNP
7. Final goods approach
8. Expenditure Method
9. Theoretical difficulty

[C] Give economic terms.

1. The gross market value of all final goods and services produced within a country in a year.
2. When depreciation is deducted from Gross National Product (GNP).
3. When the flow of income is circulated between households and business firms.
4. When value of total production of goods and services in a year is expressed in money term.
5. It is difference between export value and ) import value.
6. Organisation doing estimation of National Income.
7. In this approach value of final goods and services is considered.
8. In this approach value is added at each stage of the production process.
9. It is also known as factor cost method.
10. It is a sum/ total of income received by all ) factors of production.
11. In this method national income is R + W + I + P + MI + (X – M)
12. It is a method in which the total expenditure incurred by the society in a particular year is added together.
13. To avoid double counting these goods and services not considered while counting NI.
Answers:

1. Gross Domestic Product (GDP)
2. Net National Product (NNP)
3. Two sector economy
4. National Income (NI)
5. Net income from abroad (X – M)
6. Central Statistical Organization (CSO)
7. Final Goods Approach
8. Value Added Approach
9. Income method
10. Income method
11. Income method
12. Expenditure Method
13. Intermediate goods

(D) Find the odd word out.

1. Members of NIC (National Income Committee) :
Prof. P.C. Mahalanobis, Prof.D.R. Gadgil, Dr .V.K.R.V. Rao, Kaushik Basu.
Answer:
Kaushik Basu2. Features of NI:
Marco economic concept, Money value, Static concept, Flow concept.
Answer:
Static concept3. Three sector economy :
Foreign sectors, Household, Business Firms, Government sector.
Answer:
Foreign sector

4. Concepts of NI:
GDP, NDP, NIC, GNP.
Answer:
NIC

5. Concept of Green GNP :
Sustainable economic development, equitable distribution of benefits, Promotes economic welfare, environmental degradation.
Answer:
Environmental degradation

6. Methods of measurement of NI:
Output method, Point method, Income method, Expenditure method.
Answer:
Point Method

7. In India output is applied to :
agriculture, mining and manufacturing, transport, handicrafts.
Answer:
transport

8. In India output is not applied for :
agriculture, transport, commerce, communication.
Answer:
agriculture

9. Income method excludes :
transfer income, unpaid services, revenue from direct taxes, imputed value of production kept for self-consumption.
Answer:
imputed value of production kept for self-consumption

10. Expenditure method consist of: Consumption expenditure, Investment expenditure, Government expenditure, Expenditure on raw material.
Answer:
Expenditure on raw material

11. Income method is used in :
USA, UK, Germany, India.
Answer:
India

12. Theoretical Difficulties :
Income of foreign firms, Valuation of inventories, Valuation of government services, Transfer income.
Answer:
Valuation of inventories

13. Practical difficulties :
Capital gain/loss, Depreciation, Problem of double counting, Illegal income.
Answer:
Illegal income

14. To obtain NI, these should be excluded : Sales tax, Direct tax, Subsidies, Indirect tax
Answer:
Subsidies

15. Transfer income is :
Pension, Gifts, Rent, Unemployment ( allowance.
Rent

(E) Complete the following statements.

1. National income is the net aggregate value which does not include …………….
Answer:
depreciation

2. In India, the financial year from 1st April to 31st March is used to express …………….
Answer:
National Income

3. Inclusion of value of intermediate goods leads to …………….
Answer:
double counting

4. Services of housewives are known as …………….
Answer:
unpaid services

5. In India, the calculation of NI is done by …………….
Answer:
Central Statistical Organisation

6. ……………. method is rarely used to calculate NI.
Answer:
Expenditure Method

7. National income is studied by ……………..
Answer:
Macro economists

8. ……………. refers to wear and tear of capital assets.
Answer:
Depreciation

9. In NI value of unpaid services are …………….
Answer:
ignored / excluded

10. ……………. approach is used to avoid double counting.
Answer:
Value added approach

11. The value of only final goods and services produced in primary, secondary and tertiary sector are included in …………….
Answer:
Final goods approach

12. ……………. sector includes exchange activities without the use of money.
Answer:
Non monetised sector

13. Due to lack of occupational specialization, the calculation of national income becomes difficult by ……………. method.
Answer:
the Output Method

14. Estimating the exact national income due to changing price level is ……………. difficulty.
Answer:
(17) theoretical difficulty

15. The expenditure incurred on law and order, defence, education, etc. is called as …………….
Answer:
Government Consumption expenditure

16. While estimating NI, expenditure on final goods and services, subsidies should be …………….
Answer:
(19) included

17. ……………. leads to overestimation of the national income.
Answer:
Double counting

(F) Choose the wrong pair :

I.

Group ‘A’	Group ‘B’
Transfer income	pension/ gifts
National Income	flow concept
Gross Domestic Product (GDP)	C + I + G + (X – M) + (R-P)
CSO	Estimation of NI

Answer:
Wrong pair : Gross Domestic Product C+I+G+(X-M) +(R-P)

II.

Group ‘A’	Group ‘B’
National Income	Money value of goods and services
Unemployment allowances	Transfer payment
NNP	GNP – Depreciation
Income Method	Output method

Answer:
Wrong pair method : Income Method – Output

III.

Group ‘A’	Group ‘B’
The Output method	Product method
India used	Expenditure method
USA, UK	Income method
Illegal Income	Theoretical difficulty

Answer:
Wrong pair : India used – Expenditure method

(G) Choose the correct pair

I.

Group ‘A’	Group ‘B’
Three sector economy	Households, business firms, foreign sector
National income	Money value of final goods and services
Output method	Income method
NNP	GDP – Depreciation

Answer:
(2) National Income – Money value of final goods and services.

II.

Group ‘A’	Group ‘B’
Expenditure Method	Inventory method
GDP	C + I + G + (X-M) + (R-P)
National income	Micro economic concept
Unpaid services	Services of housewife

Answer:
(4) Unpaid services – Services of housewife

III.

Group ‘A’	Group ‘B’
Output method	The final goods approach
Income method	Product method
Expenditure method	NI = C + I + G
Illegal income	income from taxes

Answer:
(1) Output method The final goods approach.

IV.

Group ‘A’	Group ‘B’
National Income Committee	1956
Financial year	1st April to 31st March
Income Method	NI = Rent + Wages + Interest + Profit + MI + (X-M)
Expenditure Method	NI + C + I + G + (X – M)

Answer:
(3) Income Method – NI = Rent + Wages + Interest + Profit + MI + (X – M)

(H) Assertion and Reasoning

Question 1.
Assertion (A) – National dividend is that part of objective income of the community including of course income derived from abroad which can be measured in money. Reasoning (R) – This is given by Prof. A. C. Pigou.
(1) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 2.
Assertion (A) – National income is the micro economic concept.
Reasoning (R) – Micro economics deals with aggregate.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(iv) (A) and (R) both are false.

Question 3.
Assertion (A) – National income is the flow concept.
Reasoning (R) – It considers the production of goods and services in the economy during a year.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 4.
Assertion (A) – In two sector model money flows from the firms to the households in the form of rent, wages, interest.
Reasoning (R) – Households purchase goods and services from firms by using this money.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 5.
Assertion (A) – NDP = GDP – Deprecation
Reasoning (R) – To get exact value of goods and services depreciation is deducted.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 6.
Assertion (A) – In output method value of final goods and services is considered.
Reasoning (R) – In output method value of intermediate goods also considered.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(iii) (A) is true but (R) is false.

Question 7.
Assertion (A) – Value added approach is the difference between the value of final output and inputs at each stage of production.
Reasoning (R) – To avoid double counting value added approach is used.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 8.
Assertion (A) – While estimating NI indirect taxes included in the market prices are to be deducted.
Reasoning (R) – Indirect taxes are deducted to get accurate estimation of NI.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

Question 9.
Assertion (A) – Output method is more reliable.
Reasoning (R) – It is used in all developed countries.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the } correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(iv) (A) and (R) both are false.

Question 10.
Assertion (A) – All unpaid services are ) excluded from NI.
Reasoning (R) – It’s difficult to get exact) value of unpaid services.
(i) Both (A) and (R) are true and (R) is the l correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the l correct explanation of (A).

Question 11.
Assertion (A) – There are no uniform, common standard rates of depreciation
applicable to the various capital assets.
Reasoning (R) – It is easy to make correct deduction for deprecation.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(iii) (A) is true but (R) is false.

Question 12.
Assertion (A) – The small producers do not keep an account of their production. Reasoning (R) – Most of the small producers are ignorant and illiterate.
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).
(ii) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(iii) (A) is true but (R) is false.
(iv) (A) and (R) both are false.
Answer:
(i) Both (A) and (R) are true and (R) is the correct explanation of (A).

2 [A]. Identify and Explain the following concepts:

Question 1.
Suman is a math teacher by profession She also taught her son math at home.
Answer:
Concept: Unpaid services
Explanation : The services provided out of love, affection, mercy, sympathy and charity ( are not included in NI as they are not paid { (12) for. The value of unpaid services is not counted in NI.
Thus, Suman teaching math to her son is treated as unpaid service.

Question 2.
Renu paid ₹ 500 for her chest *X’ ray in $ private hospital and for the same ‘X’ ray she paid ₹ 50 in government hospital.
Answer:
Concept: Valuation of government services.
Explanation : The government provides various services lower than market price. So it is difficult to get real value of these while estimating NI.

Question 3.
Anil is a graduate but he is unemployed and receives ₹ 600 from the government.
Answer:
Concept: Unemployment Allowances. Explanation : It is considered as a transfer payment which is not included in NI.

Question 4.
Reena studies in government medical college and pays annual fees of ₹ 80,000 per year and Meena who studies in private medical college and pays annual fees of ₹ 8,00,000.
Answer:
Concept: Valuation of government services.
Explanation : The government provides various services lower than market price. It is difficult to get real value of such services while estimating NI.

Question 5.
Pooja, a cook earns ₹ 8,000 per month and she also cooks food in her house.
Answer:
Concept: Unpaid services.
Explanation : The services provided out of love, affection, mercy, sympathy and charity are not included in NI as they are not paid for. The value of unpaid services is not counted in NI.

Question 6.
Suresh regularly purchases sanitizer for ₹ 60, owing to the ‘Corona virus’ outbreak, it disappeared from the market and after few days it was sold at ₹ 100.
Answer:
Concept: Illegal income (Black Marketing)
Explanation: Illegal income is not included in NI. There will be underestimation of NI as income from illegal activities are not included.

Question 7.
To increases the production, Ambhuja cement recently purchased the machinery worth ₹ 2000 crores.
Answer:
Concept: Private Investment expenditure (I).
Explanation : It is the investment made by private businessman on capital goods like machinery, technology, plants, etc.

Question 8.
Rahul bought a car on June, 2020 from his friend Rajesh for 1 1,20,000 which is manufactured in
Answer:
Concept: Second hand goods.
Explanation : Expenditure on second hand goods should be excluded from NI. Such goods were accounted for in the year when it was produced and sold.

Question 9.
India incurred ₹ 40,000 crores to purchase missile systems S-400 from Russia.
Answer:
Concept : The Government’s Consumption expenditure.
Explanation : Government Consumption expenditure refers to the expenditure incurred by the government on various administrative services like, law and order, defence, education, health, etc.
Such government expenditures are included while calculating National Income by expenditure method.

Question 10.
The government of India is incurring ₹ 1600 crore on Delhi-Mumbai expressway which will complete by 2023 of the economy.
Answer:
Concept : The Governments Investments expenditure.
Explanation : Government Investment expenditure refers to the expenditure incurred by the government on creating infrastructural facilities like construction of roads, railways, bridges, dams, canals, etc. Such government expenditures are included while calculating National Income by expenditure method.

(B) Distinguish between

Question 1.
Gross National Product (GNP) and Gross Domestic Product (GDP).
Answer:
Gross National Product (GNP):

1. Gross National Product refers to gross money value of all final goods and services produced in the country during one accounting year, including net income from abroad.
2. GNP = C + I + G + (X – M) + (R – P)
3. GNP includes income earned by Indian Nationals within or outside the country.

Gross Domestic Product (GDP):

1. Gross Domestic Product refers to gross money value of all final goods and services produced within the domestic boundaries of a country during one accounting year.
2. GDP = C + I + G + (X-M)
3. GDP does not include income earned by Indian national outside the country.

Question 2.
Net National Product (NNP) and Net Domestic Product (NDP).
Answer:
Net National Product (NNP):

1. NNP is the net value of all final goods and services produced in an economy for one accounting year. It includes income from abroad.
2. It includes income earned by Indian Nationals within and outside the country.
3. NNP = C + I + G + (X – M) + (R – P) – Depreciation
4. NNP will be greater than NDP if (R – P) is positive.

Net Domestic Product (NDP):

1. NDP is net value of all final goods and services produced within the domestic boundaries of the country.
2. It does not include income earned by the Indian Nationals outside the country.
3. NDP = C + I + G + (X-M)- Depreciation
4. NDP will be less than NNP if (R – P) is positive and it can be more than NNP if (R – P) is negative.

Question 3.
Output Method Or Product Method and Income Method Or Factor Cost.
Answer:
Output Method Or Product Method:

1. According to the product or output method, National Income is estimated by adding up the value of all final goods and services produced in the country during one year.
2. NI = C+I+G+(X-M)+(R – P) – Depreciation – Income Tax + Subsidies
3. In India, this method is applied to agriculture, mining and manufacturing.
4. Here we look at National Income from production side.
5. In this method we deduct indirect tax and then add subsidies to arrive at National Income at Factor Cost from Market Price.

Income Method Or Factor Cost:

1. According to Income method the National Income is estimated by adding the factor Incomes that accrue to factors of production by way of rent, wages, interest and profit.
2. NI = R + W + I + P + MI + (X-M) + (R-P) – Depreciation – Transfer Income.
3. In India this method is used by National Income Committee in trade, transport, professionals, liberal arts, public administration.
4. Here we look at National Income from distribution side.
5. This method is a direct method as we arrive at National Income at factor cost.

Question 4.
Gross National Product (GNP) and Net National Product (NNP). (Feb. ‘16; Oct. ‘15)
Answer:
Gross National Product (GNP):

1. Gross National Product refers to gross money value of all final goods and services produced in an economy during a year. It includes net income from abroad.
2. Depreciation cost of capital assets are included.
3. GNP = C + I + G + (X-M) + (R-P)Or GNP = NNP + Depreciation
4. GNP value does not give us a true picture of the net increase in the production of the economy.
5. It is a wider concept. It includes NNP.
6. GNP will be greater than NNP.

Net National Product (NNP)

1. Net National Product refers to the net money value of all goods and services produced in an economy during a year. It includes net income from abroad.
2. Depreciation cost of capital assets are not included.
3. NNP = GNP – Depreciation Or
   NNP = C + I + G + (X-M) + (R – P) –  Depreciation
4. NNP is a better measure of National Income. It is a better index of judging the progress of the economy at any time.
5. It is narrow concept. It is a part of GNP.
6. NNP will be less than GNP.

Question 5.
Illegal Income and Transfer Income.
Answer:
Illegal Income:

1. Illegal income means income which is earn from illegal activities.
2. E.g. Income from gambling, black marketing, theft, smuggling, etc.

Transfer Income:

1. Transfer income means money from the government in the form of benefits.
2. E.g. income from pension, gift, unemployment allowance, etc.

Question 6.
Two Sector economy and Three Sector economy.
Answer:
Two Sector economy:

• In this economy flow of goods and money is circulated in households and business firms.
• Symbolically – Y = C + I

Three Sector economy:

• In this economy flow of goods and money is circulated in households, business firms and government sector.
• Symbolically – Y= C + I + G.

Question 7.
Three Sector economy and Four Sector economy.
Answer:
Three Sector economy:

1. In this economy, flow of goods and money is circulated in households, business firms and government sector.
2. Symbolically – Y = C + I + G

Four Sector economy:

1. In this economy, flow of goods and money is circulated in households, business firms, government sector and foreign sector.
2. Symbolically – Y= C + I + G + (X-M)

Question 8.
Income Method and Expenditure Method.
Answer:
Income Method:

1. It is the sum of income earn by all factors of production in a year.
2. In this method, national income is estimated from the distribution side
3. Symbolically – NI = R + W + I + MI + (X-M)
4. This method is extremely popular in developed countries.

Expenditure Method:

1. It is the sum of expenditure incurred by private sector and government on consumption and investment in a year.
2. In this method, national income is estimated from the expenditure side.
3. Symbolically -NI = C + I + G + (X-M) + (R-P)
4. This method is very rarely used by any country.

Question 9.
Closed Economy and Open Economy.
Answer:
Closed Economy:

1. It is an economy which is not open to international trade and foreign investment.
2. In a closed economy only the values of goods and services produced within the country are considered in the N.I. estimate.
3. Net exports and net factor income from abroad are not included.
4. GNP = GDP + C + I + G.

Open Economy:

1. It is an economy which is open to international trade and foreign investment.
2. In an open economy the values of goods and services produced within the country as well as net exports and net factor income from abroad are also considered in N.I. estimate.
3. Net exports and net factor income from abroad are included.
4. GDP(MP) = C + I + G + (X – M)
   GNP(MP) = GDP + (R – P)
   = C + I + 0 + (X – M) + (R – P)

Question 10.
Product / Output Method and Expenditure Method.
Answer:

Output Method Or Product Method:

1. According to the product or output method, National Income is estimated by adding up the value of all final goods and services produced in the country during one year.
2. NI = C+I+G+(X-M)+(R – P) – Depreciation – Income Tax + Subsidies
3. In India, this method is applied to agriculture, mining and manufacturing.
4. Here we look at National Income from production side.
5. In this method we deduct indirect tax and then add subsidies to arrive at National Income at Factor Cost from Market Price.

Expenditure Method:

1. It is the sum of expenditure incurred by private sector and government on consumption and investment in a year.
2. In this method, national income is estimated from the expenditure side.
3. Symbolically -NI = C + I + G + (X-M) + (R-P)
4. This method is very rarely used by any country.

3. Answer the following questions:

Question 1.
Explain the income method of measuring National Income.
Answer:
Meaning:
In general sense of the term ‘National Income’ refers to the total money value of all final goods and services produced in the country during a period, usually one year. It includes net income from abroad. But does not include depreciation.

Definitions:

• Prof. AC. Pigou: ‘The national dividend is that part of the objective income of the community including of course income derived from abroad, which can be measured in money.”
• Prof. Irving Fisher: “National dividend or income consists solely of services as received by ultimate consumers whether from their material or from their human environments.”
• National Income Committee: “A National Income estimate measures the volume of commodities and services turned out during a given period counted without duplication.” Here, the National Income is calculated without double counting.

Question 2.
Explain the expenditure method of measuring National Income.
Answer:

(B) Expenditure Method :
This method also known as outlay method. NI = C + I + G + (X – M) + (R – P)
National Income can also be calculated by adding up the expenditure incurred on purchase of final goods and services. We can get National Income by summing up all consumption expenditure, investment expenditure made by all individuals, firms as well as the government of a country during a year.

• Consumption Expenditure (C) : It includes all expenditure incurred on goods and services by households during the year. It includes expenditure mostly on durable and non-durable goods, which are consumed by the consumers. E.g. food, medical care, clothing, car, computer and services, etc.
• Investment Expenditure (I) : It refers to the investment made by private businessman on capital goods like machinery, plants, factories, warehouses, etc.
• Government Expenditure on goods and services (G) : Government expenditure refers to expenditure on consumption and investment –
  • Consumption expenditure : It refers to expenditure incurred on various administrative services like law and order, defence education, generation and distribution of electricity.
  • Investment expenditure : It refers to expenditure incurred by government on construction of roads, railways, dams, canals, etc.
• Net Exports (X – M): It refers to difference between exports and imports of the country. If the exports are more than imports then net exports will be positive, it is called Trade Surplus and if imports are greater than exports, the net exports will be negative, it is called as Trade Deficit.
• Net Receipts (R-P) : It is the difference between expenditure incurred by foreigners in the country (R) and expenditure incurred abroad by Nationals (P). Net Receipts can also be Positive or Negative.
  Net National Expenditure = NNE = C + I + G + (X – M) + (R – P) – Depreciation. NNPFC or NI = C + I + G + (X -M) + (R -P) “Depreciation “ Indirect Tax + Subsidies.

Precautions :
The following precautions should be taken while estimating National Income.

• To avoid double counting take the expenditure incurred only on final goods and services.
• Government expenditure on transfer payments to be excluded like unemployment allowances, old age pension etc.
• Expenditure on second hand goods like furniture, house, land and financial assets { like shares, bonds, etc. should be excluded.
• Exclude expenditure incurred on purchase of financial assets such as shares, bonds, etc.
• Deduct indirect tax and add subsidies. Out of these methods, output method and income method are extensively used. Expenditure method is rarely used because of its practical difficulties.
  In India, the Central Statistical Organisation (CSO) adopts a combination of output method and income method to estimate N.I. of India.

Question 3.
Give the definitions of National Income.
Answer:
Meaning:
In general sense of the term ‘National Income’ refers to the total money value of all final goods and services produced in the country during a period, usually one year. It includes net income from abroad. But does not include depreciation.

Definitions:

• Prof. AC. Pigou: ‘The national dividend is that part of the objective income of the community including of course income derived from abroad, which can be measured in money.”
• Prof. Irving Fisher: “National dividend or income consists solely of services as received by ultimate consumers whether from their material or from their human environments.”
• National Income Committee: “A National Income estimate measures the volume of commodities and services turned out during a given period counted without duplication.” Here, the National Income is calculated without double counting.

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

Question 1.
National Income is important to formulate only economic policies.
Answer:
No, I do not agree with this statement.
National Income data is important for many other purposes, like –

• For the Economy : National Income data are very important for marco economic analysis and performance of the economy.
• Economic Planning: The data of National Income is very important tools for long term and short term economic planning.
• Economic Research: The data of National [ Income is very useful to the research students to study aggregate consumption expenditure, investment expenditure, etc.
• Speed of Economic Growth : National Income makes it possible to know the trends or speed of the economic growth of our ( country in relation to previous years.

Question 2.
Income from second hand sale of goods is excluded from National Income.
Answer:
Yes, I agree with this statement.

• National Income includes only the money value of final goods and services produced in ( the current year.
• Income from sale and purchase of second hand goods is not included in National Income because these goods are not a part of current years production. Their value was included in the National Income of that year in which they were produced.
• As the wealth of the country remains the same if they are included in the current years National Income it will lead to double counting.
• So, National Income figures will get inflated due to over estimation.

Question 3.
National Income at factor cost includes subsidy.
Answer:
Yes, I agree with this statement.

• National Income at factor cost is the income earned by the factor owners (landlord, labourer, capitalist) in the course of contributing to the country’s output.
• NI(FC) = C + I + G + (X – M)+ (R – P) – Depreciation – Indirect Tax + Subsidies
• Subsidies is a negative tax. It is a sought of concession or discount given by the government to the consumers and producers.
• Subsidies are paid by the government to the firms / producers.
• Also the goods are sold at a price lower than their cost.
• Subsidies reduce the price of product below the factor cost. So to arrive at N.I. at factor cost we add subsidies.

Question 4.
National Income estimates are not accurate in India.
Answer:
Yes, I agree with this statement.
There are many statistical difficulties faced in the estimation of National Income due to which N.I. estimates are not accurate. They are as follows :

• There is the danger of double counting by including the value of intermediate goods.
• Inadequate and unreliable information regarding income and expenditure leads to inaccuracy in estimating N.I.
• In India, people are illiterate and ignorant, so they do not maintain proper accounts.
• To evade tax people do not reveal their exact income.
• The sources from which data are obtained are not absolutely reliable.
• Statistical staff are untrained and inefficient.

Question 5.
Old age pension is transfer income.
Answer:
Yes, I agree with this statement.

• Transfer Income are income received by individuals without contributing anything to the current years production of goods and services. It is a flow of money without a reverse flow of goods or services.
• Old age pension is received by a person after he retires from work.
• To get this income tlje person actually does not contribute anything to production of goods and services during that period.
• Old age pension is income transferred from the government.
• So it is a government expenditure.
• Transfer income are included in personal income. But they are not included in National Income because such payments do not result in any addition to the total production of goods.

Question 6.
Paid services are included in National Income.
OR Unpaid services are not included in National Income. (Mar. ‘15; Oct. ‘15)
Answer:
Yes, I agree with this statement.

• In economic sense paid services refer to economic production which means they are production of those goods and services which are meant for sale and have market value.
• Paid services are marketable. They have exchange value. We can determine its price and so it can be included in National Income.
• Unpaid services cannot be marketed so they cannot be included in National Income. Although these services contribute to human welfare.
• E.g. service of housewife. It is non-economic production, which is not marketable.
• National Income is the sum of money value of all goods and services produced during the year by the resources of a country.

Question 7.
National Income is an important tool to measure the overall performance of the economy.
OR
The concept of National Income has an important place in Economic development.
Answer:
Yes, I agree with this statement.

• National Income is one of the important indicators of economic growth and development.
• National Income is a macro variable that represents the economy as a whole.
• When there is an increase in National Income it indicates that the country’s production of goods and services have increased, employment increases, trade with rest of the world increases.
• When National Income of a country increases at a higher rate than the rate of increase in population, it leads to improvement in the standard of living and welfare of the people.
• The Per Capita Income also increases when  National Income increases.
• Therefore, National Income is an important tool to measure the overall performance of the economy.

Question 8.
The services of housewife (unpaid services) is included in National Income.
Answer:
No, I do not agree with this statement.
OR
Services of housewives are excluded from National Income.
Answer:
Yes, I agree with this statement.

• The National Income is the sum of money value of all goods and services produced during the year by the resources of a country.
• But the goods and services which do not have exchange value or market value are not included in National Income as they are non-economic production.
• Service of housewife is not considered an economic activity as it is non – economic production and so it does not have exchange value or market value.
• Housewife is not paid by family members.
• Therefore, the service of housewife is not included in National Income but the service of a maid servant is included.

Question 9.
Illegal income is not included in National Income.
Answer:
Yes, I agree with this statement.

• The existence of a parallel or black economy is a common feature of most of the economies.
• Productive activities in this sector are either concealed or under reported and as a result the income generated remain unreported. It is rather difficult to estimate this income correctly. So they are not included in National Income.
• For example income originating from activities as smuggling, black-marketing, gambling, selling harmful drugs, etc. are excluded from National,Income.
• Many rich people, businessmen and landlords hide their property and wealth. No authorised registration is available for the income received so they are not included.

Question 10.
Transfer income is included in National Income.
Answer:
No, I do not agree with this statement.
OR
Transfer Income cannot be included in National Income.
Answer:
Yes, I agree with this statement.

• Transfer income is income received by individuals without contributing to the current years production of goods and services.
• Transfer income received by people in the form of old age pension, gifts, lottery prize etc. are not included in National Income.
• These incomes are included in Personal Income but not in National Income.
• All transfer income are actually earned by some other people, by contributing to production originally and then transferred to another.
• If such incomes are counted at both places two times, there will be a double counting.
• Therefore, to avoid double counting and to get accurate estimation, transfer incomes are not included in National Income.
  National Income includes only income from production of goods and services.

Question 11.
National Income is a stock / reserve concept.
Answer:
No, I do not agree with this statement.
OR
National Income is not a stock. It is a flow concept.
Answer:
Yes, I agree with this statement.

• National income is a flow concept.
• National income is expressed per year.
• National income refers to money value of all goods and services produced by the economy in a year.
• It considers the production of current year and not previous year.

5. Study the following table / figures / passages and answers :

1. Subdivided Bar Diagram
Diagram 1 : Share of GDP by Sector for Selected Nations (2017)

Question 1.
Which are the sectors contributing in National Income / GDP?
Answer:
There are three sectors contributing in GDP – agriculture, industry and tertiary (services) sector.

Question 2.
In the United States GDP, which sectors contribution is maximum and how much percent?
Answer:
The service (tertiary) sector’s contribution is maximum in United States GDP. It was 80%.

Question 3.
In which country, contribution of primary ‘ sector (agriculture) is lowest in GDP?
Answer:
UK (United Kingdom) and Germany’s; contribution of primary sector is lowest in GDP.

Question 4.
How much is the share of agriculture in India’s National Income in the year 2017?
Answer:
In the year 2017, the share of agriculture was 15.5%.

Question 5.
In which country, the share of industry is maximum and how much percent?
Answer:
In China, the share of industry is maximum. It is 40.5%.

Question 6.
Give your opinion on sectorwise contribution in India’s GDP.
Answer:
In India, share of agriculture sector is quite high as compared to developed countries. There is need to reduce the share of agriculture in GDP. The industry and service sector should be developed so their contribution in the GDP will rise.

2. Top 10 Economies in the world in terms of GDP at current US $ trillion.

Data Source : World Economic Outlook, October 2019 database

Note : IMF’s estimate, A indicates improvement in rank, v indicates drop in rank and – indicates unchanged rank

Question 1.
Which country has highest GDP in the world?
Answer:
United State of America has the highest GDP in the world.

Question 2.
Which country has the least GDP in the world?
Answer:
Korea has the least GDP in the world.

Question 3.
At what position does India stand with respect to GDP rates?
Answer:
India stands at 5th position with respect to ) GDP rates.

Question 4.
Find out the difference in China’s GDP in the year 2017 and 2018.
Answer:
The China’s GDP has increased by 1.3 US $ trillion in the year 2018 as compared to the year 2017.

Question 5.
By how much India’s GDP has increased in the year 2017-2018.
Answer:
There is no increase in India’s GDP in the year 2017-18. India’s GDP is constant.

Question 6.
Given your opinion on India’s GDP.
Answer:
India’s is a developing economy, but it still stands at the 5th position in the worlds GDP’s.

India should focus on increasing the production of goods and services specially
from secondary and tertiary sector which will help to increase the GDP.

(3) Circular Flow of Income.

Question 1.
What does this diagram represent?
Answer:
This diagram represents model of four sector economy.

Question 2.
Which sectors are included in this type of economy?
Answer:
It includes households, firms, government and foreign sector.

Question 3.
What role does the government play in this economy?
Answer:
The government is playing very important ) role by incurring expenditure on consumption and investment. The government is also S collecting tax from household, business firm and through import.

Question 4.
Give your opinion on overseas or foreign sector.
Answer:
In four sector economy, foreign sector is playing important role. This is known as open economy which helps to earn foreign exchange, promote economic development, availability of imported goods, etc.

6. Answer in detail;

Question 1.
What is national income? Explain theoretical conceptual difficulties in the calculation of national income.
Answer:
National income means money value of goods and services produced in the country in a year.
According to National Income committee:
“A national income estimate, measures the volume of goods and services turned out during a given period without duplication. There are many practical difficulties in the measurement of NI.

• Transfer payment: If it included in national income then there will be overestimation of NI. E.g. pension, gifts, unemployment allowances, etc. are excluded.
• Unpaid services : The value of unpaid services are not included in national income as they are not paid for. E.g. services of housewife.
• Illegal income : The income from illegal activities are not included in NI. E.g. black marketing, smuggling.
• Production for self-consumption: It is very difficult to get data and value of goods kept for self-consumption as they do not enter market.
• Income of foreign firms : Income of foreign firm should be included in the national income of the country where the firm undertakes production work. But the profit earn by these firms are transferred to their home own country.

Question 2.
Explain the difficulties in measuring National Income.
Answer:
National income means money value of goods and services produced in the country in a year.
According to National Income committee:
“A national income estimate, measures the volume of goods and services turned out during a given period without duplication. There are many practical difficulties in the measurement of NI.

(A) Theoretical difficulties

• Transfer payment: If it included in national income then there will be overestimation of NI. E.g. pension, gifts, unemployment allowances, etc. are excluded.
• Unpaid services : The value of unpaid services are not included in national income as they are not paid for. E.g. services of housewife.
• Illegal income : The income from illegal activities are not included in NI. E.g. black marketing, smuggling.
• Production for self-consumption: It is very difficult to get data and value of goods kept for self-consumption as they do not enter market.
• Income of foreign firms : Income of foreign firm should be included in the national income of the country where the firm undertakes production work. But the profit earn by these firms are transferred to their home own country.

(B) Practical Difficulties or Statistical Difficulties:

• Problem of double counting: In case of certain goods it is difficult to distinguish properly between final goods and intermediate goods. That’s why problem of double counting arises e.g. flour is final goods for housewife, but it is intermediate goods for the bakery.
• Existence of non-monetised sector: In India large non-monetised sector exists in rural area specially in agriculture. In agriculture, many places goods and services are exchanged with goods that’s why it is difficult to count in national income.
• Inadequate and unreliable data: Because of illiteracy it is difficult to get adequate and reliable data from unorganised sector, small enterprises, agriculture, etc.
• Depreciation: Its difficult to measure exact value of depreciation. There are no uniform common accepted standard rates of depreciation applicable to the various capital assets.
• Capital gain or loss: Due to capital gain there is overestimation and due to capital loss there is underestimation of national income.
• Illiteracy and ignorance: Majority of small producer in developing counties are illiterate and ignorant and are not able to keep accounts of their productive activities.
• Lack of systematic, occupational classification: There is lack of systematic occupational classification, which makes the calculation of national income difficult. Especially in rural areas where many villagers work on farms for some time and also take some other job during offseason.
• Untrained and incompetent staff: Due to untrained and incompetent staff, accurate and timely, information cannot be obtained.

Question 3.
What is National Income? Explain the Output method of measuring National Income.
Answer:
Product Method or Output Method: This method is also called as Inventory Method.
According to this method economy is divided into various sectors like agriculture, mining, manufacturing, small enterprises, commerce, transport, communication, etc.

National income by this method can be calculated by either valuing all final goods and services
produced during a year at their market price or by adding up all values at each higher stage of
production, until these products are turned into final products.

In output method there are two approaches to measure national income.

(1) Final Goods Approach I Final Product Approach : According to this approach, value of all final goods and services produced in primary, secondary and tertiary sector are included and the value of all intermediate transactions are ignored.

2. Value Added Approach I Value Added Method: To avoid double-counting, the value-added approach is used to estimate the National Income. According to this method, it is necessary to obtain the total of value-added at each stage in the manufacture of a commodity to arrive at Gross National Product. The value-added method can be explained by means of a simple example.

(a) In the above example, value of groundnut with shell is 50, after removing shells value of groundnut is 80, after crushing groundnut the value is 120 and when oil is packed in the packets its value is 150.
To avoid double-counting either the value of final output or the value – added should be taken in estimation of National Income.

The output method is widely used in the underdeveloped countries. In India, this method is applied in agriculture, mining and manufacturing sector.

Precautions:

• Avoid Double Counting: The value of only final goods and services must be considered and not the value of raw – materials or intermediary goods, etc.
• Self Consumption Goods: Goods used for self-consumption by farmers should be included in National Income.
• Price Level Changes to be considered: The values of national output must be expressed in terms of prices in some base year to know the national output in real terms i.e. N.I. at constant price.
• Net Income from Abroad: Care should be taken to include net income from abroad in National Income.
• Depreciation: Depreciation of capital assets should be deducted from the value of gross investment during the year.
• Indirect Taxes and Subsidies: To get National Income, deduct the indirect tax from the market price and add subsidies.
• Second-Hand Goods: Sale and purchase of second-hand goods should be ignored as it is not a part of current production.

Question 4.
Explain the various method of measuring National Income. ?
Answer:
National Income is macro economic concept. National Income means money value of goods and services produced in the country in a year. There are three methods to measure national income.
(1) The Output Method,
(2) The Income Method,
(3) The Expenditure Method.

(A) The Income Method : This method is also known as factor cost method. According to this method national income is the sum of income received by all factors of production in a year. So national income is the income received by all the citizens of the country in a year. In income method national income studied from the distribution side. According to income method national income or GNP is
NI = R + W + I + P + MI + (X – M)

• Rent (R) : Rent and Royalty is usually treated as the payment for the land, building, machines that are rented.
• Wages (W) : It includes wages and salaries earned by labour as well as it includes commission, bonus, social security payments, fringe benefits, etc.
• Interest (I) : Interest is the payment for using the services of capital. It includes interest paid by banks, insurance companies etc.
• Profit (P) : It includes the profit of private and public sector companies.
• Mixed Income (MI) : It is the income which is earned by self-employed. They earn income through various sources like wages for effort put, rent on own property, interest on own capital, etc.
• Net Exports (X – M) : It is the difference between export and imports.

Precautions :

• Transfer payment : It should not be included in national income. E.g. pension, gifts, unemployment allowances, lottery prize, etc.
• Unpaid services : It should not be included in national income. E.g. services of housewife, teacher teaching her own child, etc.
• Second hand goods : The income from sale of second hand goods should not be included.
• Financial asset : The income from sale of shares and bonds should not be included in national income.
• Tax revenue : The revenue of government through taxes should not be included in national income.
• Undistributed profits of companies, income from government property and profits from public enterprise should be included.
• Imputed value of production kept for self consumption and rental value of owner occupied houses should be included in national income.

(B) Expenditure Method :
This method also known as outlay method. NI = C + I + G + (X – M) + (R – P)
National Income can also be calculated by adding up the expenditure incurred on purchase of final goods and services. We can get National Income by summing up all consumption expenditure, investment expenditure made by all individuals, firms as well as the government of a country during a year.

• Consumption Expenditure (C) : It includes all expenditure incurred on goods and services by households during the year. It includes expenditure mostly on durable and non-durable goods, which are consumed by the consumers. E.g. food, medical care, clothing, car, computer and services, etc.
• Investment Expenditure (I) : It refers to the investment made by private businessman on capital goods like machinery, plants, factories, warehouses, etc.
• Government Expenditure on goods and services (G) : Government expenditure refers to expenditure on consumption and investment –
  • Consumption expenditure : It refers to expenditure incurred on various administrative services like law and order, defence education, generation and distribution of electricity.
  • Investment expenditure : It refers to expenditure incurred by government on construction of roads, railways, dams, canals, etc.
• Net Exports (X – M): It refers to difference between exports and imports of the country. If the exports are more than imports then net exports will be positive, it is called Trade Surplus and if imports are greater than exports, the net exports will be negative, it is called as Trade Deficit.
• Net Receipts (R-P) : It is the difference between expenditure incurred by foreigners in the country (R) and expenditure incurred abroad by Nationals (P). Net Receipts can also be Positive or Negative.
  Net National Expenditure = NNE = C + I + G + (X – M) + (R – P) – Depreciation. NNPFC or NI = C + I + G + (X -M) + (R -P) “Depreciation “ Indirect Tax + Subsidies.

Precautions :
The following precautions should be taken while estimating National Income.

• To avoid double counting take the expenditure incurred only on final goods and services.
• Government expenditure on transfer payments to be excluded like unemployment allowances, old age pension etc.
• Expenditure on second hand goods like furniture, house, land and financial assets { like shares, bonds, etc. should be excluded.
• Exclude expenditure incurred on purchase of financial assets such as shares, bonds, etc.
• Deduct indirect tax and add subsidies. Out of these methods, output method and income method are extensively used. Expenditure method is rarely used because of its practical difficulties.
  In India, the Central Statistical Organisation (CSO) adopts a combination of output method and income method to estimate N.I. of India.

Product Method or Output Method: This method is also called as Inventory Method.
According to this method economy is divided into various sectors like agriculture, mining, manufacturing, small enterprises, commerce, transport, communication, etc.

National income by this method can be calculated by either valuing all final goods and services
produced during a year at their market price or by adding up all values at each higher stage of
production, until these products are turned into final products.

In output method there are two approaches to measure national income.

(1) Final Goods Approach I Final Product Approach : According to this approach, value of all final goods and services produced in primary, secondary and tertiary sector are included and the value of all intermediate transactions are ignored.

2. Value Added Approach I Value Added Method: To avoid double-counting, the value-added approach is used to estimate the National Income. According to this method, it is necessary to obtain the total of value-added at each stage in the manufacture of a commodity to arrive at Gross National Product. The value-added method can be explained by means of a simple example.

(a) In the above example, value of groundnut with shell is 50, after removing shells value of groundnut is 80, after crushing groundnut the value is 120 and when oil is packed in the packets its value is 150.
To avoid double-counting either the value of final output or the value – added should be taken in estimation of National Income.

The output method is widely used in the underdeveloped countries. In India, this method is applied in agriculture, mining and manufacturing sector.

Precautions:

• Avoid Double Counting: The value of only final goods and services must be considered and not the value of raw – materials or intermediary goods, etc.
• Self Consumption Goods: Goods used for self-consumption by farmers should be included in National Income.
• Price Level Changes to be considered: The values of national output must be expressed in terms of prices in some base year to know the national output in real terms i.e. N.I. at constant price.
• Net Income from Abroad: Care should be taken to include net income from abroad in National Income.
• Depreciation: Depreciation of capital assets should be deducted from the value of gross investment during the year.
• Indirect Taxes and Subsidies: To get National Income, deduct the indirect tax from the market price and add subsidies.
• Second-Hand Goods: Sale and purchase of second-hand goods should be ignored as it is not a part of current production.

Balbharti Maharashtra State Board Class 12 History Important Questions Chapter 2 European Colonialism Important Questions and Answers.

Maharashtra State Board 12th History Important Questions Chapter 2 European Colonialism

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

Question 1.
__________ was a result of Industrial Revolution.
(a) Communism
(b) Colonialism
(c) Capitalism
(d) Imperialism
Answer:
(b) Colonialism

Question 2.
The King of __________ was the supreme authority.
(a) England
(b) Portugal
(c) Russia
(d) Spain
Answer:
(d) Spain

Question 3.
In 1496, __________ was granted permission to establish colonies on American land.
(a) John Abbot
(b) George Washington
(c) Thomas Jefferson
(d) Ferdinand Magellan
Answer:
(a) John Abbot

Question 4.
The Boston Tea Party took place in the year __________
(a) 1771
(b) 1772
(c) 1773
(d) 1774
Answer:
(c) 1773

Question 5.
__________ was earlier known as ‘Brahmadesh’ (Burma).
(a) Cambodia
(b) Vietnam
(c) Thailand
(d) Myanmar
Answer:
(d) Myanmar

Question 6.
The __________ war was fought in the year 1885 C.E.
(a) Third Anglo-Burmese war
(b) Second Anglo-Burmese war
(c) First Anglo Burmese war
(d) Anglo-Nepalese war
Answer:
(a) Third Anglo-Burmese war

Question 7.
The British imprisoned __________ after his defeat.
(a) George Washington
(b) King Thibaw
(c) Thomas Jefferson
(d) John
Answer:
(b) King Thibaw

Question 8.
__________ is the capital of Tibet.
(a) Leh
(b) Ladakh
(c) Lhasa
(d) Laos
Answer:
(c) Lhasa

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

Question 1.

Group ‘A’	Group ‘B’
(a) The Boston Tea Party	1770
(b) Declaration of Independence	1774
(c) The Stamp Act	1765
(d) American Independence	1780

Answer:
The Boston Tea Party – 1773

Question 2.

Group ‘A’	Group ‘B’
(a) Queen of England	Queen Elizabeth I
(b) King of Myanmar	King Thibaw
(c) King of Belgium	Louis XVI
(d) Chancellor of Germany	Bismarck

Answer:
King of Belgium – Leopold II

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

Question 1.
The people of Asia and Africa were economically exploited by the-
Answer:
Europeans

Question 2.
In 1607 the British built a colony on the banks of the river ‘James’-
Answer:
Jamestown

Question 3.
The country which was earlier known as ‘Brahmadesh’-
Answer:
Myanmar

Question 4.
Governor-General of India who declared war against Myanmar-
Answer:
Lord Amherst

Question 5.
The American revolt of independence is also known as-
Answer:
American Revolution

Question 6.
The book written by Lokmanya Tilak in Mandalay jail-
Answer:
Geetarahasva

Question 7.
Venue of the geographical conference in 1876-
Answer:
Brussels

Question 8.
The Chancellor of Germany who established the first German colony in West Africa in 1883-
Answer:
Bismarck

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

Question 1.
The American colonies declared boycott on British goods because __________
(a) restrictions were imposed on them and autonomy
(b) British goods were of poor quality
(c) heavy taxes were levied on British goods
(d) American goods were of superior quality
Answer:
(a) restrictions were imposed on them and autonomy.

Question 2.
The British imprisoned King Thibaw because __________
(a) he was an outlaw
(b) he refused to obey the British
(c) he was a cruel king
(d) the British wanted to ensure that he would not be able to rise against the British or have any contact with his subjects
Answer:
(d) the British wanted to ensure that he would not be able to rise against the British or have any contact with his subjects.

Question 3.
The British wanted to bring Bhutan under their control because __________
(a) Bhutan was a beautiful country
(b) Bhutan was a rich kingdom
(c) Bhutan helped to open the trade route from Bengal to Tibet for the British
(d) Bhutan was militarily weak
Answer:
(c) Bhutan helped to open the trade route from Bengal to Tibet for the British.

Question 4.
Sudan was important for England because __________
(a) the Nile, the lifeline of Egypt originates in Sudan
(b) Sudan was rich in minerals
(c) Sudan had a strong army
(d) England had an ulterior motive
Answer:
(a) the Nile, the lifeline of Egypt originates in Sudan.

3A. Observe the map on textbook page 12 and answer the questions based on it.

Question 1.
Write the names of the thirteen colonies.
Answer:
New Hampshire, New York, Massachusetts, Connecticut, Rhode Island, Pennsylvania, New Jersey, Delaware, Maryland, Virginia, North Carolina, South Carolina, and Georgia.

Question 2.
Name some of the cities in the colonies.
Answer:
Portsmouth, Boston, New York City, Trenton, etc.

Question 3.
What is the name of the ocean that lies to the east of the colonies?
Answer:
The Atlantic Ocean lies to the east of the colonies.

3B. Complete the following concept map.

Question 1.

Important Events	Dates
The Stamp Act	……………………..
………………………..	1773
Declaration of Independence	………………………
……………………….	1780

Answer:

Important Events	Dates
The Stamp Act	1765
The Boston Tea Party	1773
Declaration of Independence	1774
American Independence	1780

Question 2.

Answer:

Question 3.

Answer:

4A. Write short notes.

Question 1.
The Stamp Act (1765).
Answer:

• The Stamp Act was passed in the year 1765. This act made it obligatory to purchase special stamps for important documents.
• British colonies in America like Virginia, Massachusetts put up resistance against the Stamp Act and also other restrictions on the colonies.

Question 2.
The Boston Tea Party (1773).
Answer:

• The British Parliament had granted a monopoly to the East India Company to import and sell tea to the colonies.
• People in the colonies were demanded the removal of restrictions imposed on them and autonomy. The British Government refused to yield to the demands of the colonies and in retaliation America decided to boycott British goods.
• In 1773, as an act of resistance, the local residents of Boston dumped the boxes of tea in the sea belonging to the East India Company. This event is known as the ‘Boston Tea Party.’

Question 3.
‘Declaration of Independence (1774).
Answer:
Thirteen colonies in America came together and declared independence from Great Britain. On 4th July in the meeting known as the ‘Second Continental Congress,’ a document is known as the ‘Declaration of Independence was adopted. This document was drafted by Thomas Jefferson. The crucial part of this document announced that the 13 American colonies were independent sovereign states. The key point of this document is the statement about three basic human rights namely ‘Life, Liberty, and Pursuit of Happiness. It was stated that these three are the natural rights of all humans which nobody can be deprived of.

4B. Explain the following statements with reasons.

Question 1.
Sudan was important for England.
Answer:
Sudan was a vassal state of England. Sudan was important for England because the Nile which was the lifeline of Egypt originates in Sudan. England without paying heed to local opposition established its supremacy over Sudan. To facilitate the moving of the British army in Sudan, the British began to build a railway track from Uganda to Sudan.

5. State your opinion.

Question 1.
The Boston Tea party took place in 1773.
Answer:

• The British Parliament had granted a monopoly to the East India Company to import and sell tea to the colonies.
• People in the colonies were demanded the removal of restrictions imposed on them and autonomy. The British Government refused to yield to the demands of the colonies and in retaliation America decided to boycott British goods.
• In 1773, as an act of resistance, the local residents of Boston dumped the boxes of tea in the sea belonging to the East India Company. This event is known as the ‘Boston Tea Party.’

Question 2.
‘Declaration of Independence was adopted.
Answer:
Thirteen colonies in America came together and declared independence from Great Britain. On 4th July in the meeting known as the ‘Second Continental Congress’ a document known as ‘Declaration of Independence was adopted. This document was drafted by Thomas Jefferson. The crucial part of this document announced that the 13 American colonies were independent sovereign states. The key point of this document is the statement about three basic human rights namely ‘Life, Liberty, and Pursuit of Happiness. It was stated that these three are the natural rights of all humans which nobody can be deprived of.

Question 3.
The British imprisoned King Thibaw of Myanmar.
Answer:
King Thibaw of Myanmar tried to strike a pact with Italy and Germany. These reasons were enough for the British to feel alarmed. They declared war against King Thibaw when he levied a fine on the Bombay-Burma Trading Corporation, a British company. This led to a war being declared against Burma. King Thibaw surrendered and was imprisoned by the British to ensure that he would not be able to rise against the British or have any contact with his subjects.

Question 4.
The First Anglo-Burmese War was fought.
Answer:
Burma was rich in natural wealth and was also a potential market. The royal dynasty had successfully consolidated the country under their rule. It conquered Manipur in 1813 and in 1822 they attacked Assam. The British were alarmed by these attacks. Hence, Lord Amherst, the Governor-General of India declared war against Myanmar. The war continued for two years. This was the First Anglo-Burmese War. The British navy conquered the port of Rangoon (Yangon) in this war. This war ended with a treaty between the British and the Burmese king.

6. Answer the following questions in detail.

Question 1.
Write a note on England’s role in Australia.
Answer:

• England first colonised Australia in the 18th century when the first colony of prisoners was deported from England.
• Later in the 19th century, other regions in Australia were colonised.
• The British also established their colonies in the island of Tasmania and New Zealand.
• In the year 1900, the island of Tasmania and the Republic of Australia was created as an integral nation of the British Empire.
• A bicameral parliament was established and a Governor-General was appointed in Australia by the British king as the viceregal representative.
• Only European immigrants were allowed to enter Australia.

Question 2.
Explain Britain’s interest in conquering Tibet.
Answer:

• Tibet was under the influence of the Dalai Lama.
• The British wanted to gain control over Tibet by arresting Russian advances and increase their own trade.
• The British military had reached Lhasa, the capital of Tibet.
• In 1907 as per the treaty between England and Russia, China’s political rule in Tibet was acknowledged.
• It gave leeway to China to claim Tibet as an integral part of China.

Question 3.
Discuss the consequences of Colonialism.
Answer:
The people in Asia and Africa were economically exploited by the Europeans. People in the colonies lost their independence. Their economic exploitation pushed them into poverty. A new awareness emerged in the political, social, economic, and educational fields. Common people became conscious of democratic systems and their inherent modern values like liberty, equality, and fraternity. People were introduced to principles like administration based on a fundamental legal system, judicial system, availability of education to all.

7. Answer the following question with the help of the given points.

Question 1.
Explain the causes for the rise of Colonialism.
(a) Industrial Consequences
(b) Requirements of Raw Material
(c) Sources of Minerals
(d) Feeling of Racial Superiority
Answer:
(a) Industrial Consequences:
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.

(b) Requirements of Raw Material:
The desire to create a monopoly in the market and the need to procure raw material at cheaper rates were two major factors that made European nations compete with one another for clear Supremacy.

(c) Sources of Minerals:
The countries in Asia and Africa were rich in minerals like gold, diamonds, silver, coal, etc. This attracted the European nations to Asia and Africa.

(d) Feeling of Racial Superiority:
The Europeans felt it was their responsibility to civilise the people of Asia and Africa. This led to the conversion of Asian and African people to Christianity. It also helped the growth of colonialism.

Question 2.
Write a note on the events that led to the American Revolution.
(a) The Stamp Act of 1765
(b) The Boston Tea Party of 1773
(c) Declaration of Independence in 1774
(d) War at Saratoga
Answer:
(a) The Stamp Act (1765):

• The Stamp Act was passed in the year 1765. This act made it obligatory to purchase special stamps for important documents.
• British colonies in America like Virginia, Massachusetts put up resistance against the Stamp Act and also other restrictions on the colonies.

(b) The Boston Tea Party (1773):

• The British Parliament had granted a monopoly to the East India Company to import and sell tea to the colonies.
• People in the colonies were demanded the removal of restrictions imposed on them and autonomy. The British Government refused to yield to the demands of the colonies and in retaliation America decided to boycott British goods.
• In 1773, as an act of resistance, the local residents of Boston dumped the boxes of tea in the sea belonging to the East India Company. This event is known as the ‘Boston Tea Party.’

(c) ‘Declaration of Independence (1774):
Thirteen colonies in America came together and declared independence from Great Britain. On 4th July in the meeting known as the ‘Second Continental Congress,’ a document is known as ‘Declaration of Independence was adopted. This document was drafted by Thomas Jefferson. The crucial part of this document announced that the 13 American colonies were independent sovereign states. The key point of this document is the statement about three basic human rights namely ‘Life, Liberty, and Pursuit of Happiness. It was stated that these three are the natural rights of all humans which nobody can be deprived of.

(d) American War of Independence:
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.

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

Maharashtra State Board 12th Geography Important Questions Chapter 7 Region and Regional Development

Choose the correct option by identifying the correct correlation in the sentences.

Question 1.
Formal region …………….
(a) USA
(b) TV signal areas
(c) Wireless
(d) Wi-Fi hotspot
Answer:
(a) USA

Question 2.
Functional region …………….
(a) Rice producing area
(b) Desert area
(c) Iron and steel producing areas
(d) Wireless
Answer:
(d) Wireless

Question 3.
In rural areas much of the land is used for …………….
(a) housing
(b) agriculture
(c) market
(d) transport
Answer:
(b) agriculture

Question 4.
Important indicator of development is …………….
(a) Per capita income
(b) Out migration
(c) Slow growth of population
(d) Dependency ratio
Answer:
(a) Per capita income

Question 5.
Functional region is …………….
(a) Canada
(b) Africa
(c) Europe
(d) Pune metropolitan region
Answer:
(d) Pune metropolitan region

Question 6.
Formal region …………….
(a) Mumbai Metropolitan region
(b) Delhi Metropolitan region
(c) West Bengal
(d) Nagpur Metropolitan region
Answer:
(c) West Bengal

Identify the correct correlation.

A : Assertion, R : Reasoning
Question 1.
A – A functional region may be heterogeneous in nature.
R – It may involve more than one type of physical or political region.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 2.
A – Cities can be considered as a functional region.
R – Buses move people from the suburb to the city central area.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 3.
A – There are many indicators of development like quality and quantity of population, education, poverty, etc.
R – But only one indictor can decide the development of region.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(a) Only A is correct.

Question 4.
A – Population and development are closely interrelated.
R – Population influences development and in turn, is influenced by development.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Identify the incorrect factor.

Question 1.
In urban areas much of the land is used for
(a) Housing
(b) Commercial
(c) Mining
(d) Industries
Answer:
(c) Mining

Question 2.
Factors responsible for regional development
(a) Physical factors
(b) Economic factors
(c) Environment factors
(d) Push and pull factors
Answer:
(d) Push and pull factors

Question 3.
Factors responsible for imbalanced development
(a) Accessibility
(b) Altitude
(c) Migration
(d) Relief
Answer:
(c) Migration

Question 4.
A region may not be well developed if
(a) Landlocked
(c) Lack of natural harbour
(b) High mountain ranges
(d) Favourable climate
Answer:
(d) Favourable climate

Question 5.
Functional region
(a) Wi-Fi hotspots
(b) TV signal area
(c) Assam
(d) Wireless
Answer:
(c) Assam

Question 6.
Formal regions
(a) West Bengal
(b) Rice producing area
(c) A city
(d) Africa
Answer:
(c) A city

Complete the Chain

Question 1.

A	B	C
(1) Amazon	(1) River	(1) Physical
(2) Khandesh	(2) Administrative	(2) Political
(3) Bengali speaking	(3) Language	(3) Linguistics

Answer:

A	B	C
(1) Amazon	(1) Language	(1) Linguistics
(2) Khandesh	(2) River	(2) Physical
(3) Bengali speaking	(3) Administrative	(3) Political

Question 2.

A	B	C
(1) Ganga Basin	(1) Island	(1) Tourism
(2) Japan	(2) Beautiful scenery	(2) Agriculture and industries
(3) Indonesia	(3) Fertile soil	(3) Trade and import resources

Answer:

A	B	C
(1) Ganga Basin	(1) Fertile soil	(1) Agriculture and industries
(2) Japan	(2) Island	(2) Trade and import resources
(3) Indonesia	(3) Beautiful scenery	(3) Tourism

Question 3.

A	B	C
(1) Later stage of Demographic Transition Theory	(1) Higher population	(1) Higher amount of capital resources consumed
(2) Population pyramid	(2) Pull factor	(2) Lower per capita income
(3) Migration	(3) Low growth of population	(3) Greater development less spent on population
(4) Indicator of economic development	(4) High dependency ratio	(4) Good employment opportunities

Answer:

A	B	C
(1) Later stage of Demographic Transition Theory	(1) Low growth of population	(1) Greater development less spent on population
(2) Population pyramid	(2) High dependency ratio	(2) Higher amount of capital resources consumed
(3) Migration	(3) Pull factor	(3) Good employment opportunities
(4) Indicator of economic development	(4) Higher population	(4) Lower per capita income

Give geographical reasons.

Question 1.
Population and development are closely interrelated.
Answer:

• The economic development in any country/region depends upon the quantity and quality of its people.
• Higher the numbers of people lower the per capita income, which indicates low development in the country/region.
• Lesser number of people in the country/region lead to shortage of skilled labour and limited development. Higher number of populations is good for the development of the country/region.
• The quality of people includes age structure, sex ratio, occupational structure, literacy rate, etc. If these aspects of the population are favourable, then there is development in the country/ region.
• Age group of people in the country also affects the development. If there are more people in the working age group then there is more economic development.
• Migration also affects the economic development of the region/country. If people migrate to any region it indicates employment opportunities and economic development.
• However, too much migration may create pressure of population on available resources and labour thus, adversely affecting the development of the country/region.

Write short notes on.

Question 1.
Causes of regional imbalances in India.
Answer:
India faces imbalanced regional development due to uncertainty in the development of states or districts.

The main factors affecting regional development of any region are physical factors like climate, soil, location, relief, geology of the country, forest, etc.

Some regions have favourable relief, climate, fertile soil or favourable geographical location or ample natural resources. Such regions develop faster. For example, the northern plains of India are well developed due to plain relief, fertile soil and moderate climate. Coastal cities like Mumbai, Chennai are well developed due to development of ports and harbours.

Some regions have unfavourable relief or climate. Therefore, development is limited. For example, the north-eastern states of India have less development due to hilly relief, heavy rainfall, frequent flooding and inaccessibility.

The human factors like market demand, transportation, power supply, banking and insurance facilities, communication facilities, technological development, skilled labour, etc., contributes to the development of a region. For example, due to unfavourable human factors, the Himalayan region is less developed. Thus, there is regional imbalance in India.

Balbharti Maharashtra State Board Class 12 Geography Important Questions Chapter 5 Secondary Economic Activities Important Questions and Answers.

Maharashtra State Board 12th Geography Important Questions Chapter 5 Secondary Economic Activities

Choose the correct option by identifying the correct correlation in the sentences.

Question 1.
Secondary activities include
(a) Processing
(b) Commercial farming
(c) Horticulture
(d) Mining
Answer:
(a) Processing

Question 2.
Economic factor deciding location of industry
(a) Labour
(b) Transport
(c) Market
(d) Agglomeration
Answer:
(c) Market

Question 3.
Industry in which semi-skilled labour is essential
(a) Food processing
(b) Electronic
(c) Construction
(d) Chemical
Answer:
(c) Construction

Question 4.
Industry having split location
(a) Food processing
(b) Automobile
(c) Iron and steel
(d) Jute textile
Answer:
(b) Automobile

Question 5.
In India, which of the following industries have portal location?
(a) Iron and steel
(b) Oil refineries
(c) Food processing
(d) Dairy
Answer:
(b) Oil refineries

Identify the correct correlation.

Question 1.
A – Cottage industry is the most basic industry.
R – Some of the products of this industry have great demand abroad.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(d) Both A and R are correct but R is not the correct explanation of A.

Question 2.
A – Public sector industries are owned by the state.
R – Marketing of goods is through private agencies.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(a) Only A is correct.

Question 3.
A – Tata Iron and Steel Industry is the basic industry.
R – Finished product of this industry is the raw material in many industries.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Identify the incorrect factor.

Question 1.
Physical factors of location of industries,
(a) Climate
(b) Market
(c) Water
(d) Physiography
Answer:
(b) Market

Question 2.
Physical factors of location of industries,
(a) Transport
(b) Labour
(c) Land
(d) Capital
Answer:
(d) Capital

Question 3.
Physical factors of location of industries,
(a) Land
(b) Labour
(c) SEZs
(d) Water
Answer:
(c) SEZs

Question 4.
Industrial regions in the United States of America.
(a) New England
(b) England
(c) New York
(d) Mid-Atlantic
Answer:
(b) England

Question 5.
Industrial regions in Japan.
(a) Tokyo
(b) Kobe
(c) Kimberly
(d) Kawasaki
Answer:
(c) Kimberly

Question 6.
Industrial regions in Africa.
(a) Congo
(b) Ghana
(c) Angela
(d) Zambia
Answer:
(c) Angela

Question 7.
Important industries in New Zealand.
(a) Meat products
(b) Dairy products
(c) Canned fruits
(d) Oil refining
Answer:
(d) Oil refining

Question 8.
Agro-based industries
(a) Cotton textile
(b) Sugar
(c) Food processing
(d) Steel industry
Answer:
(d) Steel industry

Question 9.
Proposed economic corridors
(a) DMIC
(b) ADKIC
(c) BMC
(d) BMIC
Answer:
(c) BMC

Complete the Chain

Question 1.

A	B	C
(1) Co-operative sector	(1) Owned by private individual	(1) ONGC
(2) MNCs	(2) Only one state	(2) AMUL
(3) Private sector	(3) More than one country	(3) BHEL
(4) Public sector	(4) Group of people set up	(4) TISCO

Answer:

A	B	C
(1) Co-operative sector	(1) Group of people set up	(1) AMUL
(2) MNCs	(2) More than one country	(2) ONGC
(3) Private sector	(3) Owned by private individual	(3) TISCO
(4) Public sector	(4) Only one state	(4) BHEL

Question 2.

A	B	C
(1) Household industry	(1) Material produced by industry used as raw material by other industries	(1) Iron and Steel industry
(2) Heavy industry	(2) Goods produced for direct consumption	(2) Electronic industry
(3) Light industry	(3) Manufacture parts and components	(3) Iron sheets
(4) Ancillary industry	(4) Use local raw material	(4) Potters

Answer:

A	B	C
(1) Household industry	(1) Use local raw material	(1) Potters
(2) Heavy industry	(2) Material produced by industry used as raw material by other industries	(2) Iron and Steel industry
(3) Light industry	(3) Goods produced for direct consumption	(3) Electronic industry
(4) Ancillary industry	(4) Manufacture parts and components	(4) Iron sheets

Complete the following as per instructions.

Question 1.
Arrange the industrial regions of USA from North to South.
New York, Mid-Atlantic, New England, Eastern Texas.
Answer:
New England, New York, Mid-Atlantic, Eastern Texas.

Question 2.
Arrange the industrial regions of Australia from East to West.
Adelaide, Melbourne, Sydney, Perth
Answer:
Sydney, Melbourne, Adelaide, Perth.

Question 3.
Arrange the industrial regions of Japan from North to South. Tokyo, Osaka, Yokohama, Nagoya.
Answer:
Tokyo, Yokohama, Nagoya, Osaka.

Give geographical reasons.

Question 1.
What factors are responsible for non-development of industries in Central Australia?
Answer:

• Central part of Australia is covered by the Great Australian desert.
• Since it is a desert, physical factors like climate, water, raw materials, labour and transport facilities are not suitable for the development of industries.
• Because of these adverse physical conditions, the density of population is extremely low and therefore there are limited markets. Also, due to these unfavourable economic factors also industries are not developed in central Australia.

Differentiate between.

Question 1.
Public Sector Industries and Private Sector Industries.
Answer:

Public Sector Industries	Private Sector Industries
(i) Public sector industries are owned by the state.	(i) Private sector industries are owned by a private individual or in partnership.
(ii) Government investment and marketing of goods.	(ii) Individuals or partners make investment and profit or loss is shared equally.
(iii) Bharat Heavy Electrical Limited (BHEL) is a public sector industry.	(iii) Tata Iron and Steel Company (TISCO) is a private sector industry.

Question 2.
Large scale industries and Cottage or Household industries
Answer:

Large scale industries	Cottage or Household industries
(i) These industries require huge amount of capital for machinery and infrastructure.	(i) These industries need limited capital, since machinery and infrastructure.
(ii) Goods are produced to sell in the regional or national market.	(ii) Goods are produced for the sale in the local market.
(iii) For example, cotton textile industry or iron and steel industry.	(iii) For example, weavers, blacksmith, sculpture, carpenter etc.
(iv) These industries require skilled labour since all products are handmade.	(iv) These industries require machinery than skilled labour.

Answer the following Questions by using given map.

1. Name the industrial region of India.
2. Name the industrial region of north China.
3. Name the industrial region of Russia
4. Name the industrial region on North-East part of USA.
5. Name the industrial region on South-Western coast of Australia.
6. Name the industrial region of South Japan.
7. Name the industrial region of South America.
8. Name the industrial region of South China.
9. Name the industrial region of Europe.

Answer:

1. The industrial region of India is Chota Nagpur region.
2. The industrial region of North China is East coast industrial region (Beijing).
3. The industrial region of Russia is Moscow-Tula region.
4. The industrial region of North-East part of USA is New England industrial region.
5. The industrial region on South-Western coast of Australia is Perth industrial region.
6. The industrial region of South Japan is Osaka-Kobe-Kyoto industrial region.
7. The industrial region of South America is South-East Brazil industrial region.
8. The industrial region of South China is Lower Yangtze industrial region.
9. The industrial region of Europe is Great Britain industrial region.

Write short notes on.

Question 1.
Classification of industries based on the source of raw material.
Answer:
Based on the source of raw material, industries are classified as follows:
Agro-based industries : The industries which use agricultural produce as raw material and process them into finished products are called agro-based industries. For example, fruit processing industries which produce jam, jelly, sherbet, fruit canning, etc., locate near fruit growing areas.

Mineral-based industries : These industries use minerals as raw material and after processing produce finished products. For example, petrochemical industries use mineral oil as raw material and produce petrol, diesel, lubricants, kerosene, paraffin wax etc.

Forest-based industries : These industries use forest products such as wood, tendu leaves, rubber, turpentine, grass, etc., as raw material and after processing produce finished products. For example, paper industries use wood and make paper, rubber industries use natural rubber to make rubber products, scented oil is made from various grass varieties.

Marine-based industries : These industries use marine resource as raw material and after processing produce finished products. For example, fish canning, fish oil making industries use fish as raw material. Other marine-based industries are industries producing decorative articles/ purses, by using sea shells as raw material or decorative articles of corals.

Pastoral-based industries: These industries use animal product such as milk, meat or body parts of animals such as bones, horns, wool, skin etc. For example, dairy industries use milk, woollen textile mills use wool, or leather industries use skin of animals as raw material.

Balbharti Maharashtra State Board Class 12 Economics Important Questions Chapter 9 Money Market and Capital Market in India Important Questions and Answers.

Maharashtra State Board 12th Economics Important Questions Chapter 9 Money Market and Capital Market in India

1. A. Choose the correct option:

Question 1.
Money Market is a market for lending and borrowing of ………….. funds.
(a) long term
(b) medium-term
(c) short term
(d) all of these
Answer:
(c) short term

Question 2.
The financial system of the country is responsible for ………….. of funds.
(a) mobilization and allocation
(b) distribution of investment
(c) optimum resources
(d) all of these
Answer:
(a) mobilization and allocation

Question 3.
………….. is the only active money market centre in India.
(a) Nagpur
(b) Madras
(c) Mumbai
(d) Kolkata
Answer:
(c) Mumbai

Question 4.
Central Bank has the ………….. of cash reserve of commercial Bank in the country.
(a) monopsony
(b) monopoly
(c) oligopoly
(d) autopsony
Answer:
(b) monopoly

Question 5.
The Central Bank acts as a ………….. of cash reserve of Commercial Bank in the country,
(a) head
(b) leader
(c) custodian
(d) protector
Answer:

Question 6.
………….. is the apex body of the monetary and banking system of Commercial Banks in the country.
(a) Commercial Bank
(b) Central Bank
(c) Government
(d) Co-operative Bank
Answer:
(b) Central Bank

Question 7.
Bank rate is ………….. measure of credit control.
(a) quantitative
(b) qualitative
(c) selective
(d) effective
Answer:
(a) quantitative

Question 8.
Reserve Bank of India was established in …………..
(a) 1937
(b) 1936
(c) 1935
(d) 1934
Answer:
(c) 1935

Question 9.
The operation of direct buying and selling of securities by central bank in the money market is called …………..
(a) open market operation
(b) credit creation
(c) moral suasion
(d) closed market operation
Answer:
(a) open market operation

Question 10.
………….. account is opened by businessmen, corporate bodies, etc.
(a) Saving
(b) Current
(c) Fixed
(d) Recurring
Answer:
(b) Current

Question 11.
………….. is a primary function of commercial banks.
(a) Safe deposit vault
(b) Letter of credit
(c) Accepting deposits
(d) Transfer of funds
Answer:
(c) Accepting deposits

Question 12.
Every loan creates .
(a) deposits
(b) credit
(c) profit
(d) debit
Answer:
(a) deposits

Question 13.
Enactment of the Co-operative Credit Societies Act .
(a) 1903
(b) 1904
(c) 1905
(d) 1906
Answer:
(b) 1904

Question 14.
was the 1st Development Financial Institution to be established in 1948.
(a) IFCI
(b) IDBI
(c) ICICI
(d) HSCBI
Answer:
(a) IFCI

Question 15.
DFHI was set up on the recommendation of the committee.
(a) Narsimhan
(b) Vaghul
(c) Vaghale
(d) Tandon
Answer:
(b) Vaghul

Question 16.
The activities of unorganized money market are largely confined to the areas.
(a) city
(b) urban
(c) rural
(d) none of these
Answer:
(c) rural

Question 17.
important source of funds in unbanked areas which provide loans directly to agriculture, trade and industry.
(a) Indigenous bankers
(b) EXIM Bank
(c) IDBL
(d) HSCB Bank
Answer:
(a) Indigenous bankers

Question 18.
charge high rate of interest to the people.
(a) RBI
(b) Commercial Bank
(c) Money lenders
(d) LIC
Answer:
(c) Money lenders

Question 19.
………………. short term instruments issued by the RBI on behalf of the government to meet temporary liquidity shortfalls.
(a) Commercial papers
(b) Call money market
(c) Treasury Bills
(d) Commercial Bills
Answer:
(c) Treasury Bills

(B) Complete the Correlation 

1. RBI was set up : Hilton Young Commission :: DFHI was set up : ………………..
2. Open market operation : ……………….. :: Moral suasion : Qualitative method
3. Deposits that are repayable after a certain period of time : Time deposits :: Deposits that are withdrawable on demand : ………………..
4. Commercial Banks : Credit creation :: ……………….. : Controller of credit
5. SEBI : 1998 :: NSE : ………….

Answer:

1. Vaghul committee
2. Quantitative method
3. Demand deposits
4. RBI
5. 1992

(C) Suggest the economic terms for the given statements.

(1) Account that are operated by salaried class and small traders.
(2) Accounts is opened by businessmen, corporation or trust.
(3) Source of funds in unbanked areas which provide loans directly to agriculture, trade and industry.
(4) It is unsecured negotiable instrument in bearer form issued by Commercial banks and Development Finance Institutions.
(5) It is also known as the gilt-edged market.
(6) Market deals with securities already issued by companies.
(7) It act as a link between the investors and the borrower to meet the financial objectives of both the parties.
(8) It deals with the shares and debentures issued by old and new companies.
(9) Market for long term funds.
(10) Fund to promote investors awareness.
Answer:

1. Saving A/c
2. Current A/c
3. Indigenous bankers
4. Certificates of deposits
5. Government Securities
6. Secondary Market
7. Financial intermediaries
8. Industrial Securities Market
9. Capital Market
10. IEPF

(D) Find the odd word

(1) Financial Instruments :
Bonds, Demand, Equity Shares, Derivatives.
Answer:
Demand

(2) Unorganised Sector :
Indigenous Bankers, Money lenders, Unregulated Non-Bank Financial Intermediaries, Co-operative Banks.
Answer:
Co-operative Banks

(3) Functions of RBI:
Collection and Publication of Data, Controller of Credit, Credit Creation, Bankers Bank.
Answer:
Credit Creation

(4) Functions of Commercial Bank :
Acceptance of Deposits, Lending loans and advances, Credit Creation, Banker’s Bank.
Answer:
Banker’s Bank

(5) Co-operative Credit Structure : State level, District level, Secondary level, Primary level
Answer:
Secondary Level

(6) Money Market Instruments :
Treasury Bills, Certificate of Deposits, Commercial Bills, Discount and Finance House of India.
Answer:
Discount and Finance House of India

(E) Complete the following statements.

(1) Method of withdrawing money without going to the bank is by
Answer:
ATM

(2) The Account in which certain amount of money is deposited every month regularly for a fixed duration is .
Answer:
Recurring A/c

(3) Credit creation is an important function of Bank.
Answer:
Commercial

(4) Saving Bank Account is suitable for people
Answer:
salaried

(5) Higher rate of interest is paid on deposits.
Answer:
Fixed

(6) Currency rate of India to other currency means
Answer:
exchange rate

(7) system economies the use of cash.
Answer:
Clearing House

(8) The works as friend, philosopher and guide to Commercial Bank.
Answer:
Central Bank

(9) Bank grants loans to government.
Answer:
Central

(10) When money is borrowed or lent for a day, it is known as
Answer:
Call / Notice money

(11) A well-developed money market ensures successful implementation of the policy.
Answer:
monetary

(F) Choose the wrong pair :

I.

Group ‘A’	Group ‘B’
1. Central Bank	Apex Banking Institution
2. Clearing House system	Specialised institution for agriculture
3. Credit Control	Quantitative measure
4. Money Market	Short term fund

Answer:
Wrong pair : Clearing House system Specialised institution for agriculture

II.

Group ‘A’	Group ‘B’
1. Commercial Bank	Acceptance of Deposit
2. IFCI	1948
3. Co-operative Credit Society Act	1904
4 Discount and Finance House of India	1980

Answer:
Wrong pair : Discount and Finance House of India – 1980

(G) Assertion and Reasoning.

Question 1.
Assertion (A) : Illegal practices have also affected the smooth functioning of capital market. :
Reasoning (R) : Price manipulation or ( price rigging on the other hand means to simply raise the prices of shares through ) buying and selling of shares within certain individual themselves for personal gains. ;
(i) (A) is true, but (R) is false
(ii) (A) is false but (R) is true
(iii) Both (A) and (R) are true and (R) is the correct explanation of (A)
(iv) Both (A) and (R) are true and (R) is not the correct explanation of (A)
Answer:
(iv) Both (A) and (R) are true and (R) is the correct explanation

(H) Choose the correct pair :

I.

Group ‘A’	Group ‘B’
Demat Account	(a) Commercial Bank
Overdraft	(b)Ancillary function
Credit creation	(c) 1949
Banking Regulation Act	(d) 1935
	(e) Amount withdrawn above the actual balance

Ans.
(1)-(b), (2)-(e), (3)-(a), (4) – (c)

II.

Group ‘A’	Group ‘B’
Local area Banks	(a) RBI
Liquidity Adjustment Facility (LAF)	(b) Primary and Secondary markets
Industrial Securities market	(c) Money Market
Stock Exchange	(d) Capital Market
	(e) August, 1996

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

Q.2.[A] Identify and explain the concept from given illustrations.

Question 1.
Santosh invested money in share market and the broker does fraud in company.
Answer:
Concept: Financial Scams
Explanation : Financial scams are the frauds and manipulations done by the stock brokers for their personal benefits. Increasing number of financial frauds have resulted in irreparable loss for the capital market.
It also leads to public distrust and loss of confidence among the individual investors.

Question 2.
XYZ Bank Provides cash credit, overdraft facility and loan to its customer.
Answer:
Concept: Providing loans and advances by Commercial Bank
Explanation : Commercial Bank mobilize savings and lend these funds to institutions and individuals for various purposes.
Based on tenures, loans include call loans, short term, medium term and long term loans.
Longer the duration of the loans, greater will be the rate of interest.
Beside this bank also provide cash credit, overdraft facility as well as discounting of bills of exchange.

(B) Distinguish between:

Question 1.
Central Bank and Commercial Bank.
Answer:
Central Bank:

1. The central bank is the apex banking institution whose main function is to control, regulate and stabilise the monetary system of the country in the national interest.
2. The main function of central bank is to control, regulate and stabilise the banking and monetary system of the country.
3. It does not deal with public directly. It acts as the banker to government and bankers bank.
4. It enjoys the monopoly right to print and issue currency notes.
5. Central Bank controls the credit.
6. There is only one Central Bank in India. R.B.I. is owned by Government.

Commercial Bank:

1. A commercial bank is abusiness organisation which basically accepts deposits from public and lends to others who need fund and create credit.
2. The main function commercial bank is to accept deposits and lend loans and advances.
3. It deals with the public directly. They are banker to general public.
4. Commercial banks do not possess such rights.
5. Commercial banks create credit.
6. Owned by private or government. There are several commercial banks like State Bank of India, ICICI Bank, Canara Bank, etc.

Question 2.
Quantitative Credit Control and Qualitative Credit Control. (Mar. ’18)
Answer:
Quantitative Credit Control:

1. This method aims at controlling credit by expanding or contracting the volume of credit in the banking system.
2. The important quantitative measures to control credit are
   (1) Bank Rate
   (2) Open Market Operation
   (3) Varying Cash Reserve ratio.
3. During inflation quantitative measures adopt the strategy of contracting the volume of credit so as to reduce money supply. During inflation such methods are applied to encourage expansion of credit and expand money supply.
4. They are macro economic in nature and influence the whole economy.

Qualitative Credit Control:

1. It aims at controlling credit by checking the purpose or use of the credit.
2. Selective control measures include the following:
   (1) Changing the market.
   (2) Regulation of consumer credit
   (3) Issue of directives
   (4) Rationing of credit
   (5) Moral suasion.
3. The main strategy of selective credit control measures is to ensure that credit money does not reach undesirable and non – productive channels.
4. They are micro in nature and do not influence the whole economy.

Question 3.
Current Account and Saving Account.
Answer:
Current Account:

1. This account is usually opened by businessmen, industrial enterprises, public bodies, etc.
2. This account facilitates regular business transactions.
3. There is no interest paid on current account.
4. There is no restriction on withdrawals.

Saving Account:

1. This account is held by the households, salaried class, small traders, etc.
2. The main purpose of saving account is to encourage saving habits among people.
3. The saving account earns a nominal rate of interest.
4. Withdrawals are allowed subject to certain restrictions.

Question 4.
Fixed Deposits and Saving Deposits.
Answer:
Fixed Deposits:

1. Fixed Deposits are time bound deposits, where money is deposited for a specific period of time.
2. The main objective is to earn high interest and to get lumpsum amount on maturity.
3. It cannot be withdrawn before maturity but one can close the account before maturity with loss of interest.
4. The rate of interest is high. It can be 6% to 10% depending upon the period of deposit.

Saving Deposits:

1. Saving deposits are a kind of demand deposits, which is held by households or individuals for the purpose of savings.
2. Safety is the major objective of saving accounts.
3. Withdrawals are allowed subject to certain restrictions.
4. The saving account earns nominal rate of interest. At present it is about 4 to 4.5% per annum.

Question 5.
Current Deposits and Recurring Deposits.
Answer:
Current Deposits:

1. It is a kind of demand deposit which is mostly held by companies, institutions, government and individual for the sake of business transactions.
2. It is suitable for business firms for the purpose of transactions.
3. There are no restrictions on withdrawals.
4. There is no interest paid.

Recurring Deposits:

1. These are deposits under which people pay a specified amount at a regular interval of time for a given period of time.
2. It is suitable for the salaried, poor and lower middle class who can save a certain amount of money regularly every month.
3. The amount can be withdrawn after a specific period of time.
4. The interest rate is higher.

Question 6.
Current Deposits and Fixed Deposits,
Answer:
Current Deposits:

1. It is a kind of demand deposit which is usually held by companies, institutions, government and individuals for the sake of business transactions.
2. There are no restriction on withdrawals.
3. No interest is paid to current account or deposits.
4. The main purpose of current account is to facilitate regular transactions.

Fixed Deposits:

1. Fixed deposits are a kind of time deposits which is deposited for a specific period.
2. The amount deposited cannot be withdrawn before maturity period.
3. The rate of interest paid is high.
4. The main purpose is to get a lumpsum amount on the maturity of the deposit.

3. Answer the following questions :

Question 1.
Explain the reforms introduced in the capital market.
Answer:
Reforms introduced in the Capital Market are as follows :

• SEBI was established in 1988 and given statutory power in 1992 to protect interest of investors.
• NSE, the leading stock exchange in India was established in 1992.
• Introduction of Computerised Screen Based Trading System (SBTS).
• Introduction of Demat A/c in 1996 to facilitate easy purchase and sale of securities.
• Increased access to global funds, Indian companies was permitted through ADRs and GDRs.
• Investors Education and Protection Fund (IEPF) was created in 2001 to promote awareness among investors and protecting the interest of the investors.

Question 5.
What are the reforms introduced in the money market?
Answer:
Following are the reforms introduced in the Money Market:

• Introduction of New Money Market Instruments : In order to widen and diversify the Indian money market, RBI has introduced many new money market instruments such as 182 Days treasury bills, 364 day treasury bills, CDs and CPs. Through these instruments, the government, commercial banks, financial institutions and corporates can raise funds through the money market.
• Liquidity Adjustment Facility (LAF) : RBI has introduced LAF for adjusting liquidity through repos and reverse repos to stabilise the short-term interest rates or call rates.
• Deregulation of Interest Rates : Ceiling on interest rates on the call money and inter bank short term deposits was removed and the rates were permitted to be determined by the market forces.
• National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) were introduced as an improved payment infrastructure.
• Electronic dealing system was introduced.

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

Question 1.
There is four tier co-operative credit l bank structure in India.
Answer:
No, I do not agree with this statement.
There are three tier of credit co- operative bank structure i.e. at –
Primary Level – Primary Co operative Credit Societies.
District Level – District Central Co operative Banks.
State Level – State Co operative Banks.

Question 2.
Moneymarket consist only unorganised sector in India.
Answer:
No, I do not agree with this statement.
Money market consist organized as well as unorganized sector in India
The organized sector of money market consist of the RBI, Commercial Banks Co-operative Banks, Development Financial Institutions (DFIs) and Discount and Finance House of India (DFHI) and the unorganized sector of money market consist of Indigenous Bankers, Money lenders and Unregulated Non-Bank Financial Intermediaries.

Question 3.
Unit Trust of India was the first development financial institution in India.
Answer:
No, I do not agree with this statement.
Development Financial Institution are agencies that provide medium and long term financial assistance.
They help in the development of industry, agriculture and other key sectors.
In includes many financial institutions, like – ICICI, IDBI, IIBI and UTI.
IFCI was the first development financial institution established in 1948.

Question 4.
Compared to advanced countries, the Indian money market is less developed.
Answer:
Yes, I do agree with this statement.
Indian money market is relatively underdeveloped, when compared to advanced markets like London and New York money markets.
Its main weaknesses are explained as below:

Following are the problems of money market in India:
(a) Shortages of Funds : Generally, there is shortage of funds in Indian Money Market on account of various factors like inadequate banking facilities, low savings, lack of banking habits, existence of parallel economy,- etc. have also been responsible for the paucity of funds in the money market.

(b) Existence of Unorganised Money Market : This is one of the major defects of Indian Money Market. It does distinguish between short term and long term finance, and also between the purposes of finance. Since it is outside the control and supervision of RBI. It limits the RBI’s control over money market.

(c) Delays in technological up-gradation: Use of advanced technology is a pre requisite for the development and smooth functioning of financial markets. Delays in up-gradation of technology hampers the working of the money market.

(d) Absence of Well Organized Banking Sector : Branch expansion was very slow before bank nationalization in 1969. Even now the banks are largely concentrated in large towns and small cities. There is lack of movement of funds. Indian banking system is not yet a well organized sector.

(e) No Uniformity in the rates of interest:
There exists too many rates of interest in the Indian Money Market such as the borrowing rate of government, deposits and lending rates of co-operatives and commercial banks, lending rates of financial institutions, etc. This is due to lack of mobility of funds from one section of the money market to another.

5. Answer in detail:

Question 1.
Explain the role of money market in India ?
Answer:
(A) Meaning:
Money market is a market for lending and borrowing short term funds.
It is a market for near money.
It deals in short term instruments like trade bills, government securities, promissory notes, etc.
Money market centres are located at Mumbai, Delhi and Kolkata. Money market consists of organised as well as unorganised sector.

Role of Money Market in India :
1. Portfolio Management : Money market deals with different types of financial instruments which are designed to suit the ( risk and return preferences of the investors. This enables the investors to hold a portfolio of different financial assets which in turn, helps in minimizing risk and maximizing returns.

2. Implementation of monetary policy :
Various monetary policies are implemented by the Central Bank, with an aim to manage the quantity of money, to meet the requirements of different sectors of the economy and to increase the pace of economic growth. Money market ensures successful implementation of these monetary policies. It also guides the central bank in developing an appropriate interest policy.

3. Growth of Commerce, Industry and Trade : Money market facilitates discounting bills of exchange to local and international traders who are in urgent need of short-term funds. It also provides working capital for agriculture and small scale industries.

4. Financial requirements of the Government : Money market helps the Government to fulfil its short term financial requirements on the basis of Treasury Bills.

5. Economizes the use of cash : Money market deals with various financial instruments that are close substitutes of money and not actual money. Thus, it economizes the use of cash.

6. Equilibrating mechanism : Money market helps to establish equilibrium between the demand for and supply of short term funds by allocating rationally the available resources and thus mobilizing the savings of public into fruitful investment channels.

7. Liquidity Management : Money Market, through the monetary authorities facilitates better management of liquidity and money in the economy. This, in turn, leads to economic stability and development of the country.

8. Short-term requirements of borrowers :
Money market provides short-term financial needs of the borrowers at reasonable prices.

Question 4.
Write note on Recent Developments in banking sector.
Answer:
Recent developments in banking sector :

(a) Small Finance Banks : The main aim of small finance banks is to promote financial assistance to small business units, small and marginal farmers, micro and small industries and other unorganised sectors of the economy.
It also assists with high technology at low cost of operations.

(b) Payments Banks : Payment banks are like other banks only, but they operate on a smaller scale without involving any credit risk.
It can carry almost all banking operations but cannot advance loans or issue credit cards.
It can accept deposits upto ₹ one lakh.
It can offer following services to its customers – remittance services, mobile payments, ATM facility, Debit cards, net banking, etc.

(c) Universal Banks : Universal banks refer to those banks that offer a wide range of financial services like commercial banking and investment banking and also offer other services, especially insurance service. It is a multipurpose and multi-functional financial supermarket providing both banking and financial services through a single window.

(d) Local Area Banks : Local area bank scheme was introduced in August, 1996. It was established to mobilize rural savings by private local banks and make them available for investments in the local areas. This helps to bridge the gap in credit availability and strengthens the institutional credit system in the rural and semi-urban areas.

Balbharti Maharashtra State Board Class 12 Geography Important Questions Chapter 8 Geography: Nature and Scope Important Questions and Answers.

Maharashtra State Board 12th Geography Important Questions Chapter 8 Geography: Nature and Scope

Choose the correct option by identifying the correct correlation in the sentences.

Question 1.
………………. is not included in atmosphere.
(a) Weather
(b) Climate
(c) Precipitation
(d) River
Answer:
(d) River

Question 2.
……………….. is not included in hydrosphere.
(a) Mountain
(b) Ocean
(c) Sea
(d) Lake
Answer:
(a) Mountain

Question 3.
……………….. is not included in lithosphere.
(a) Relief
(b) Drainage
(c) Weather
(d) Slope
Answer:
(c) Weather

Question 4.
…………………. is not included in Human Geography.
(a) GIS
(b) Social Geography
(c) Behavioural Geography
(d) Economic Geography
Answer:
(a) GIS

Question 5.
……………… is not included in Human Geography.
(a) Historical Geography
(b) Statistics
(c) Political Geography
(d) Population Geography
Answer:
(b) Statistics

Question 6.
…………………. is not included in geographical techniques.
(a) Statistics
(b) Cartography
(c) Remote sensing
(d) GIS
Answer:
(a) Statistics

Question 7.
………………… is not included in biosphere.
(a) Food chain
(b) Ecosystem
(c) Macro-organisms
(d) Lakes
Answer:
(d) Lakes

Identify the correct correlation.

A : Assertion, R : Reasoning
Question 1.
A – The Earth is dynamic in nature.
R – The geographical phenomena are not static but dynamic.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(d) Both A and R are correct but R is not correct explanation A.

Question 2.
A – Geography is dynamic in nature.
R – Geography is a study of space and time.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 3.
A – Skills of geographers have enriched the subject as newer branches of geography.
R – Skills acquired by geographers enable them to make observations and describe various elements on the earth.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 4.
A – Geography is an integrating and inter disciplinary discipline.
R – Many branches of geography have developed from mainstreams of disciplines.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not correct explanation A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Identify the incorrect factor.

Question 1.
The main branches of geography are
(a) Physical geography
(b) Economic geography
(c) Pedology
(d) Human geography
Answer:
(c) Pedology

Question 2.
The main branches of Physical geography are
(a) Geomorphology
(b) Climatology
(c) Biogeography
(d) Remote sensing
Answer:
(d) Remote sensing

Question 3.
The cartographic techniques include
(a) Geology
(b) GPS
(c) Cartography
(d) GIS
Answer:
(a) Geology

Question 4.
The subjects related to Human geography are
(a) History
(b) Social geography
(c) Political science
(d) Psychology
Answer:
(b) Social geography

Question 5.
The subjects related to Human geography are
(a) Demography
(b) Sociology
(c) Historical geography
(d) Economics
Answer:
(c) Historical geography

Question 6.
The branches of Human geography are
(a) Economics
(b) Population geography
(c) Behavioural geography
(d) Historical geography
Answer:
(a) Economics

Question 7.
The cartographic techniques include
(a) Computer science
(b) Cartography
(c) Quantification methods in geography
(d) GIS
Answer:
(a) Computer science

Question 8.
The branches of Human geography are
(a) Political geography
(b) Social geography
(c) Psychology
(d) Economic geography
Answer:
(c) Psychology

Question 9.
The subjects related to Physical geography are
(a) Biogeography
(b) Geology
(c) Meteorology
(d) Biology
Answer:
(a) Biogeography

Complete the Chain

Question 1.

A	B	C
(1) Physical Geography	(1) Computer science	(1) GIS
(2) Human Geography	(2) Pedology	(2) Geography of Soils
(3) Geomorphology	(3) Psychology	(3) Behavioural Geography

Answer:

A	B	C
(1) Physical Geography	(1) Pedology	(1) Geography of Soils
(2) Human Geography	(2) Psychology	(2) Behavioural Geography
(3) Geomorphology	(3) Computer science	(3) GIS

Question 2.

A	B	C
(1) Geographic Techniques	(1) Geology	(1) Population Geography
(2) Human Geography	(2) Engineering	(2) Geomorphology
(3) Physical Geography	(3) Demography	(3) Remote Sensing

Answer:

A	B	C
(1) Geographic Techniques	(1) Engineering	(1) Remote Sensing
(2) Human Geography	(2) Demography	(2) Population Geography
(3) Physical Geography	(3) Geology	(3) Geomorphology

Question 3.

A	B	C
(1) Human Geography	(1) Meteorology	(1) Political Geography
(2) Physical Geography	(2) Geodesy	(2) Cartography
(3) Geographic Techniques	(3) Political Science	(3) Climatology

Answer:

A	B	C
(1) Human Geography	(1) Political Science	(1) Political Geography
(2) Physical Geography	(2) Meteorology	(2) Climatology
(3) Geographic Techniques	(3) Geodesy	(3) Cartography

Give geographical reasons.

Question 1.
Geography offers vast scope for career.
Answer:

• Due to the dynamic nature of geography, various advanced statistical techniques and computer programs are used to study and explain the geographical phenomenon.
• Presently, because of global warming, natural disasters occur in various areas of the world. However, different techniques are being used to study the intensity of disasters or provide warnings before a disaster. Hence, disaster management is now a new field for career.
• Geographers have a wide scope to work as climate analyst, water conservation, water and air pollution monitoring, environmental conservation, environmental education/awareness, etc., because of the increasing air and water pollution and environmental degradation.
• Maps are essential in geography. Nowadays, maps are not made manually but with the help of GIS software. Thus, there is a wide scope for career in cartography.
• Population study of a country goes on continuously; therefore, many job opportunities as surveyor, census officer or data collector.
• Research is also going on in various branches for geography; therefore, there are career opportunities as researcher or research analyst.
• There are also career opportunities in book writing, teaching, journalism, freelancing preparing maps and diagrams for textbooks, data scientist, tour guide, report writing, urban planner, travel blogger, data scientists, etc.
  Thus, geography offers vast scope for career.

Balbharti Maharashtra State Board Class 12 Geography Important Questions Chapter 6 Tertiary Economic Activities Important Questions and Answers.

Maharashtra State Board 12th Geography Important Questions Chapter 6 Tertiary Economic Activities

Choose the correct option.

Question 1.
Canadian Pacific Railway connects
(a) Halifax – New York
(b) Vancouver – Boston
(c) Halifax- New Orleans
(d) Vancouver – Halifax
Answer:
(d) Vancouver – Halifax

Question 2.
Panama Canal connects
(a) Atlantic – Pacific
(b) Atlantic – Indian Ocean
(c) Bay of Bengal – Arabian sea
(d) Mediterranean Sea – Red sea
Answer:
(a) Atlantic – Pacific

Question 3.
Trans-Siberian Railway line connects
(a) Moscow – Novosibirsk
(b) Vancouver – Boston
(c) Moscow – Khabarovsk
(d) Moscow – Vladivostok
Answer:
(d) Moscow – Vladivostok

Question 4.
Suez Canal connects
(a) Atlantic – Pacific
(b) Atlantic – Indian Ocean
(c) Bay of Bengal – Arabian sea
(d) Mediterranean Sea – Red sea
Answer:
(d) Mediterranean Sea – Red sea

Identify the correct correlation.

A : Assertion, R : Reasoning
Question 1.
A – Some products are processed in secondary activities.
R – Some products received from primary activities cannot be consumed directly.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 2.
A – In international trade of grapes, air transport is used.
R – Grapes are perishable goods.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(c) Both A and R are correct and R is correct explanation of A.

Question 3.
A – In Africa and South America, construction of roads and railways of long distance is difficult.
R – Generally, it is easier to build roads and railways where relief is not rugged.
(a) Only A is correct.
(b) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(d) Both A and R are correct but R is not the correct explanation of A.

Question 4.
A – Densely populated countries have to worry about feeding their own populations.
R – The country with less population will depend less on trade because of less human resources engaged in production.
(a) Only A is correct.
(d) Only R is correct.
(c) Both A and R are correct and R is correct explanation of A.
(d) Both A and R are correct but R is not the correct explanation of A.
Answer:
(d) Both A and R are correct but R is not the correct explanation of A.

Identify the incorrect factor.

Question 1.
Important stations of Trans-Siberian railway
(a) Vladivostok
(b) Moscow
(c) Hamburg
(d) Novosibirsk
Answer:
(c) Hamburg

Question 2.
Important stations on Canadian Pacific railway
(a) Halifax
(b) Boston
(c) Montreal
(d) Vancouver
Answer:
(b) Boston

Question 3.
Important ports on Mumbai-Tokyo waterway
(a) Mumbai
(b) Colombo
(c) Perth
(d) Tokyo
Answer:
(c) Perth

Question 4.
Important airports on Mumbai-Washington air route
(a) Istanbul
(b) London
(c) Halifax
(d) Washington
Answer:
(c) Halifax

Question 5.
Parts of the world known for their specific art and craft
(a) Kashmiri shawl
(b) Indian textile
(c) Iranian carpets
(d) Batik print of Indonesia
Answer:
(b) Indian textile

Question 6.
Transportation facilities are well developed in
(a) North America
(b) Africa
(c) Asia
(d) Europe
Answer:
(b) Africa

Question 7.
Important quinary activities are-
(a) Government officials
(b) Scientists
(c) Judges
(d) Statisticians
Answer:
(d) Statisticians

Question 8.
Important quaternary activities are-
(a) Financial planner
(b) Tax consultant
(c) Judges
(d) Software developers
Answer:
(c) Judges

Question 9.
The factors which affect tertiary activities are-
(a) Soil
(b) Climate
(c) Relief
(d) Location
Answer:
(a) Soil

Complete the Chain

Question 1.

A	B	C
(1) Climate	(1) Soil	(1) Import food
(2) Natural Resources	(2) High density	(2) Woollen products
(3) Population	(3) Dry farming	(3) Agriculture
(4) Culture	(4) Snow covered area	(4) Kashmiri shawl
(5) Israel	(5) Art and craft	(5) Export services for agriculture

Answer:

A	B	C
(1) Climate	(1) Snow covered area	(1) Woollen products
(2) Natural Resources	(2) Soil	(2) Agriculture
(3) Population	(3) High density	(3) Import food
(4) Culture	(4) Art and craft	(4) Kashmiri shawl
(5) Israel	(5) Dry farming	(5) Export services for agriculture

Question 2.

A	B	C
(1) Climate	(1) Skills	(1) Information technology
(2) Population	(2) Tropical	(2) Tea, Coffee export
(3) Culture	(3) Poor soil	(3) Export oil
(4) Gulf countries	(4) Art and craft	(4) Chinese porcelain

Answer:

A	B	C
(1) Climate	(1) Tropical	(1) Tea, Coffee export
(2) Population	(2) Skills	(2) Information technology
(3) Culture	(3) Art and craft	(3) Chinese porcelain
(4) Gulf countries	(4) Poor soil	(4) Export oil

Give geographical reasons.

Question 1.
The population of the country also affects trade.
Answer:
The quality and quantity of population in the country have direct effect on the trade.
Densely populated countries have a lot of local demand. So, there is hardly any surplus for export trade.
The thinly populated countries have limited local demand. Therefore, they have a lot of surplus for trade.

The quality of population also affects trade. More resourceful, enthusiastic and skilled people in the country, more innovative production and trade in the country.

In many countries, skills of a person is preserved from generation to generation. Hence, they are specialised in certain products. Therefore, they develop trade of such goods. For example, carpets in Iran, woollen goods of Jammu and Kashmir, Chinese porcelain, etc.

The standard of living also affects trade. In some countries population is less but due to high standard of living, there is more demand for expensive goods. So, import trade is developed there.

Answer the following questions by any given map.

1. Write the name of transcontinental railway line in Russia.
2. Write the name of transcontinental railway line in Canada.
3. Write the name of canal which connects Red Sea with Mediterranean Sea or Asia with Europe.
4. Write the name of canal which connects Pacific Ocean with Atlantic Ocean.
5. Write the name of the important international airport of North India.
6. Name the international airport of UK.
7. Which means of transport are shown in the map?

Answer:

1. The transcontinental railway line in Russia is the Trans-Siberian railway line.
2. The transcontinental railway line in Canada is the Canadian-Pacific railway line.
3. The canal which connects Red Sea with Mediterranean Sea or Asia with Europe is the Suez canal.
4. The canal which connects Pacific Ocean with Atlantic Ocean is the Panama canal.
5. The important international airport of North India is in Delhi.
6. The important international airport of the UK is in London.
7. The means of transport shown in the map are transcontinental railway lines and airways.

Write short notes on.

Question 1.
Climate and trade.
Answer:
Climate has a direct effect on agriculture of the country. Due to favourable climate there is specialisation of certain crops in some areas. For example, due to hot and humid climate there is specialisation of rice crops in Southeast Asian countries. So, they have developed trade of rice in the world.

The quality of grass depends upon climate. In cool climates, soft and juicy grass grows, so such area has developed pastoral activities and trade of animal products. For example, Australia and New Zealand have become some of the leading exporters of butter, cheese, condensed milk powder, mutton, etc.

Climate also affects the growth and type of forest in the country. Due to a cool climate in Canada, Russia, Scandinavian countries, the coniferous forest grows which provides softwood; it has great demand in the world market. Therefore, Canada, Norway, Sweden, Finland, Russia are leading exporters of wood.

In some countries, there is a specialization of certain goods due to specific climates. For example, in snow-covered areas there is more production of woolen goods; therefore, there is more export trade of woolen goods from the Jammu and Kashmir states of India.

Balbharti Maharashtra State Board Class 12 Sociology Important Questions Chapter 5 Social Movements in India Important Questions and Answers.

Maharashtra State Board 12th Sociology Important Questions Chapter 5 Social Movements in India

1A. Complete the following statements by choosing the correct alternative given in the brackets and rewrite it.

Question 1.
___________ led the famous home rule movement in India. (Lala Lajpat Rai, Annie Besant, Mahatma Gandhi)
Answer:
Annie Besant

Question 2.
The Quit India Resolution was passed in the year ___________ (1944, 1942, 1956)
Answer:
1942

Question 3.
The Feminist Network, ___________ was published to bring women’s issues to the forefront. (Kesari, Gulamgiri, Manushi)
Answer:
Manushi

Question 4.
___________ is recognised as the Father of the Indian Workers’ Movement. (Lala Lajpat Rai, Meghaji Lokhande, Mahatma Gandhi)
Answer:
Meghaji lokhande

Question 5.
All India Trade Union Congress (AITUC) was established under the chairmanship of ___________ (Lala Lajpat Rai, Mahatma Gandhi, Shahapuri Bengalee)
Answer:
Lala Lajpat Rai

Question 6.
The Bombay Textile Labour Union was under the leadership of ___________ (Narayan Meghaji Lokhnde, N. M. Joshi, S. A. Dange)
Answer:
N. M. Joshi

Question 7.
In the year 1947, ___________ was formed. (National Trade Union Federation, The Indian National Trade Union Congress, Hind Mazdoor Sabha)
Answer:
The Indian National Trade Union Congress

Question 8.
The Kisan Sabha movement started in Bihar under the leadership of ___________ (P. N. Dhanagare, Raja Mahendra Pratap, Swami Sahajanand Saraswati)
Answer:
Swami Sahajanand Saraswati

Question 9.
The Chipko Movement began in the year ___________ (1983, 1973, 1992)
Answer:
1973

Question 10.
22nd April is celebrated as ___________ all over the world. (Child Labour Day, Earth Day, Environmental Day)
Answer:
Earth Day

Question 11.
One of the prominent federations in the country which represents labour at a national level is the ___________ (Central Trade Union organisation, All Indian Kisan Sabha, Self-employed Women’s Association)
Answer:
Central trade union organisation

Question 12.
___________ is a major weapon in the hands of labour. (Strike, Dispute, Conciliation)
Answer:
Strike

Question 13.
___________ established the Women Indian Association in Madras. (Aruna Asaf Ali, Margaret Cousins, Sarala Devi)
Answer:
Margaret Cousins

Question 14.
___________ are the collective actions to change the existing Social System. (Social relationships, social pattern, Social Movement)
Answer:
Social Movement

Question 15.
The ___________ of 1947, allowed the usage of mechanisms like conciliation, arbitration, and adjudication to mitigate the conflict between workers and management. (Factories Act, Industrial Disputes Act, Trade Union)
Answer:
Industrial Disputes Act

Question 16.
The ___________ economy was primarily based on agriculture and forest produce. (mixed, subsistence, market)
Answer:
subsistence

Question 17.
___________ led the struggle of poor farmers against the British government in Kheda. (Datta Samant, Mahatma Gandhi, Charan Singh)
Answer:
Mahatma Gandhi

Question 18.
___________ may imply rapid change in values, ideas and expectations in society. (Cultural diffusion, Cultural drift, Cultural lag)
Answer:
Cultural drift

Question 19.
The term Social Movement was introduced by the German Sociologist ___________ (Lorenz Von Stein, Auguste Comte, Durkheim)
Answer:
Lorenz Von Stein

Question 20.
Organised social movements for reform started since the ___________ century. (20th, 19th, 17th)
Answer:
19th

Question 21.
___________ strived for the progress of women and eradication of illiteracy. (Swami Dayanand Saraswati, Mahatma Gandhi, Raja Rammohan Roy)
Answer:
Swami Dayanand Saraswati

Question 22.
The Female Infanticide (Prevention) Act was enacted in ___________ (1856, 1891, 1870)
Answer:
1870

Question 23.
___________ worked for Women’s Suffrage. (Sarojini Naidu, Kasturba Gandhi, Vijayalakshmi Pandit)
Answer:
Sarojini Naidu

Question 24.
The ‘Bombay Mill Hands Association’ was started under the guidance of ___________ (Narayan Meghaji Lokhande, Shapurji Bengalee, Shripad Amrut Dange)
Answer:
Narayan Meghaji Lokhande

Question 25.
The ‘Great Depression adversely affected the ___________ Movement in India. (Women’s, Worker’s, Tribals)
Answer:
Workers

Question 26.
The Indian National Trade Union Congress (INTUC) was formed in the year ___________ (1948, 1947, 1950)
Answer:
1947

Question 27.
Chipko Movement was started by ___________ (Amrita Devi, Medha Patkar, Sunderlal Bahuguna)
Answer:
Amrita Devi

Question 28.
In 1985, the Narmada Bachao Andolan emerged as one of the powerful movements under the leadership of ___________ (Medha Patkar, Amrita Devi, Sunderlal Bahuguna)
Answer:
Medha Patkar

1B. Correct the incorrect pair and rewrite it.

Question 1.
(a) The Sati Prohibition Act – 1817
(b) The Widow Remarriage Act – 1856
(c) The Female Infanticide (Prevention) Act – 1870
(d) The Age of Consent at Marriage Act – 1891
Answer:
(a) The Sati Prohibition Act – 1829

Question 2.
(a) Narmada Bachao Andolan – Medha Patkar
(b) Chipko Movement – Sunderlal Bahuguna
(c) The Indian Workers’ Movement – Narayan Meghaji Lokhande
(d) Farmers’ Movement in Punjab – Charan Singh
Answer:
(d) Farmers’ Movement in Punjab – Raja Mahendra Pratap

Question 3.
(a) The ‘Bombay Mill Hands Association’ – Meghaji Lokhande
(b) All India Trade Union Congress – Lala Lajpat Rai
(c) The Bombay Textile Labour Union – Charan Singh
(d) The Great Bombay Textile Act – Datta Samant
Answer:
(c) The Bombay Textile Labour Union – N. M. Joshi

Question 4.
(a) The threats to ecological balance – Environmental Movement
(b) The practice of discriminatory customs – Women’s Movement
(c) The exploitation of workers – Tribal Movement
(d) The unrest and of peasant – Farmers’ Movement
Answer:
(c) The exploitation of workers – Workers’ Movement

Question 5.
(a) The Brahmo Samaj – Raja Rammohan Roy
(b) The Arya Samaj – Maharshi Karve
(c) The Satya Shodhak Samaj – Jyotirao Phule
(d) The Depressed Classes Education Society – Dr. B. R. Ambedkar
Answer:
(b) The Arya Samaj – Swami Dayanand Saraswati

Question 6.
(a) “Educate, organise, and agitate” – Dr. B. R. Ambedkar
(b) The SNDT Women’s University – Rajarshi Shahu Maharaj
(c) The abolition of Sati 1929 – Raja Rammohan Roy
(d) Swaraj (self-rule) – Mahatma Gandhi
Answer:
(b) The SNDT Women’s University – Maharshi Karve

1C. Identify the appropriate term from the given options in the box and rewrite it against the given statement.

S. A. Dange, Sarala Devi, Medha Patkar, Greater depression, Forest conservation, Women Movement, Raja Mahendra Pratap, Bharatiya Mazdoor Sangh, Charansingh, Datta Samant, Mahatma Gandhi, Cultural drift, Vishaka Guidelines, Chipko Movement.

Question 1.
A rapid change in values, ideas, and expectations in society.
Answer:
Cultural Drift

Question 2.
It ensures a safe and healthy work environment for women.
Answer:
Vishaka Guidelines

Question 3.
Shapurji Bengaleeis recongnised as the Father of the Indian Workers’ Movement.
Answer:
Meghaji Lokhande

Question 4.
It is marked by the Gandhian principle of non-violence.
Answer:
Chipko Movement

Question 5.
The Great Bombay Textile Strike 1982 under the leadership.
Answer:
Datta Samant

Question 6.
The world economic crisis is known as.
Answer:
Great Depression

Question 7.
Participated in the non-violence movement.
Answer:
Sarala Devi

Question 8.
The movement that thrives to achieve equality for women.
Answer:
Women’s Movement

Question 9.
The farmer’s movement in Punjab was under the leadership of.
Answer:
Raja Mahendra Pratap

Question 10.
Answer:
Forest Conservation

Question 11.
The largest trade union in India.
Answer:
Bharatiya Mazdoor Sangh

Question 12.
Gram Swarajya was based on the principles of
Answer:
Mahatma Gandhi

Question 13.
The leader opposed industrialisation and championed low capital investment in agriculture.
Answer:
Charan Singh

1D. Correct underlined words and complete the statement.

Question 1.
Chipko stands for chop the trees.
Answer:
Chipko stands for Hug the trees.

Question 2.
Radical Marxism views environmental degradation as rooted in the equalities in society.
Answer:
Radical Marxism views environmental degradation as rooted in the inequalities in society.

Question 3.
The Blue Movement in Germany north America plays an important role in the proceeding and preserving the Earth.
Answer:
The Green Movement in Germany north America plays an important role in the proceeding and preserving the Earth.

Question 4
Maharshi Karve’s mission was to end untouchability and achieve swaraj.
Answer:
Mahatma Gandhi’s mission was to end untouchability and achieve swaraj.

Question 5.
All India Women’s Conference was established in the year 1936.
Answer:
All India Women’s Conference was established in the year 1926.

Question 6.
Mahatma Gandhi referred to dams as ‘Temples of Modern India’.
Answer:
Jawaharlal Nehru referred to dams as ‘Temples of Modern India’.

Question 7.
The historical Great Bombay Textile Strike started in August 1960.
Answer:
The historical Great Bombay Textile Strike started in January 1982.

Question 8.
A social movement is individual in nature.
Answer:
A social movement is collective in nature.

2. Write short notes.

Question 1.
Factors or Causes of Social Movements
Answer:
There are various factors of social unrest that lead to a social movement, they are as follows:
Cultural drift: A cultural drift may imply a rapid change in values, ideas, and expectations in society. When the gap between what is expected and what is accepted widens beyond the permissible range in a given society, conflict emerges, resulting in the possibility of a social movement. In the course of cultural drift, the people develop new ideas. To get these ideas operative in society they organize movements.
Example: Development of democratic society, the emancipation of women, removal of the caste system.

Social disorganisation: A changing society is to some extent disorganised because changes in different parts of society don’t take place simultaneously. One part changes and the other is left behind. Industrialisation and urbanisation brought uneven and inequitable growth in society which in turn caused a number of social problems in the already existing norms. New norms clash with the already established norms, which brings confusion and uncertainty.

Perceived social injustice: When a group of people develops a sense of dissatisfaction and discontent towards certain decisions taken by the authority, they feel frustrated and unhappy. Such a feeling can result in a sense of social injustice, eventually developing into a movement. Frustration and alienation can result in social movement, e.g., workers’ movement.

Rigidity in the normative structure: Social norms are set behaviour pattern that is seen every society to maintain order and stability. However, in certain cases, these norms lose their flexibility and thus do not match the expectations of the masses. Behaviour Patterns have to match with the normative structure of the society. Rigidity in the normative structure demands transformation in the social system, thus social movements arise where ever there is discontent and social unrest in the society.

Question 2.
Chipko Movement
Answer:
It was started by Amrita Devi, marked by the Gandhian principle of non-violence, and is known for the active participation of women in it. Chipko stands for ‘hug-the-tree’. The movement was started in 1973, in Chamoli district, under the leadership of Sunderlal Bahuguna.

It is said that the villagers hugged or embraced or stuck to the trees in the forest to prevent them from being cut by the contractors. The livelihood of inhabitants residing there is closely linked to the forests. However, demographic and economic factors led to indiscriminate use of forests resulting in deforestation.

Processes of industrialisation and development led to improvement in the means of transport and communication. People involved in developmental projects challenged the established claim of local people on forests. Loss of means of livelihood affected and angered people leading to the emergence of the movement.

In April 1973, when the contractors along with the workers reached Mandal village to cut trees and to clear jungles spaces allotted to them by the State government, the inhabitants resisted this action of the government, and to mark their protest they hugged the trees. The action happened at a mass level, as a result of which the authorities had to retreat. The women of the village also participated in the protest. This incident boosted the morale of several other groups facing similar problems to get together and to protest against deforestation.

Later on, the government set up a committee to look into the matter which eventually ruled in favour of the villagers, here Chipko Movement became a turning point in the history of eco-development struggles in the region and around the world.

Question 3.
Workers’ Movement in India
Answer:
With the advent of the factory system, there emerged two classes in society namely, the industrialists and the labourers. Since modern industry thrives on profit maximisation, the exploitation of workers in terms of extraction of work, minimisation of wages, long hours of work, delays in promotion, reduced wages, poor work conditions, became a feature of industrialising societies. Such situations prompted workers to get together to protest against the system in India.

The course of the industrial working-class movement can broadly be divided into four phases.
(i) Emergence of the Workers’ Movement (1850 to 1918)
The first phase of protests was by groups of workers without prior planning and organisation.

In March 1875 Shapurji Bengalee revolted against the bad conditions of labour, which resulted in the enactment of the First Factories Act in 1881.

The first workers’ organisation in India, the ‘Bombay Mill Hands Association’ was started on 23rd September 1884 under the guidance of Narayan Meghaji Lokhande who is recognised as the Father of the Indian Workers’ Movement.

He organised a conference of mill workers in the Bombay Presidency to consolidate the demands and problems of workers and passed resolutions to improve the conditions.

The second phase was marked by a conscious understanding of the issues and problems faced by workers which led to the formation of Trade Unions. According to many scholars, it was more like a movement for workers, than a movement by workers

(ii) Rise of Pressure Groups (1918 to 1947)
After World War I, several changes in the economy and industry took place. However, the wages and work conditions for workers did not improve. This resulted in mass discontent and unrest.

Several strikes from the period 1918 to 1920 made workers’ dissatisfaction intense.

The emergence of Trade Unions as a pressure group can be said to be a very important development in the Workers’ movement. All India Trade Union Congress (AITUC) was established under the chairmanship of Lala Lajpat Rai. Inl926, the government passed the Indian Trade Union Act whereby all registered unions were granted constitutional recognition. The Bombay Textile Labour Union which operated under the leadership of N. M. Joshi was the first union to get its recognition under the Act in 1926.

The period also witnessed the emergence of the Leftist ideology with a prominent influence of Marxian thought in the Workers’ Movement. The world economic crisis is known as the ‘Great Depression’ adversely affected. The strikes increased and leaders like Muzaffer Ahmed and Shripad Amrut Dange played an important role in intensifying workers’ struggle. The Trade Unions diversified according to different ideological orientations. In order to bring in coordination, the National Trade Union Federation (NTUF) was established.

(iii) Role of INTUC (1948 to 1960)
In the year 1947, the Indian National Trade Union Congress (INTUC) was formed. In1948 a separate organisation, independent of political affiliation, to safeguard and promote the rights of workers was established. It was known as Hind Mazdoor Sabha (HMS). Those who did not agree with the principles of HMS consequently established a parallel body called United Trade Union Congress UTUC) in 1949. The Bharatiya Mazdoor Sangh (BMS) was established in the yearl955. When Congress came to power inl947 the activities of Trade Unions were scrutinised and even criticised.

In the subsequent years strike continued to be used as a mechanism by workers, against industrialists. In thel960s the grievances among the workers were pertaining to wages, bonuses, overtime – which consequently changed to suspension from work, unfair dismissal, and workers’ rights. Every established political party developed its own Trade Union wing with the purpose of having an element of control on workers and expanding its vote bank.

Similarly, a split in a party resulted in the division of unions. For example, when the Communist wing split into CPI and CPM, the Union was taken over by CPI and the latter established a separate body called the Centre for Indian Trade Unions (CITU).

(iv) Consolidation and Diversification of the Movement (after 1960)
The 1960s witnessed a lull in economic growth and expansion. The Industrial Disputes Act 1947, was passed to ensure industrial peace and harmony by providing a mechanism and procedure for the investigation and settlement of industrial disputes. The Workers’ Movement lost its momentum after the 1970s.

The historical Great Bombay Textile Strike started in January 1982, by the mill workers in Mumbai, under the Union leader Datta Samant. In all 65 textile mills, which implied 250,000 workers, stopped working. Along with the demand for a wage hike, Datta Samant also demanded scrapping of the Bombay Industrial Act of 1947. The then, the government firmly rejected the demand of the workers’ unions. The strike continued for years, resulting in a major loss for the industry and extreme pauperisation among workers.

As per the Report of Labour Bureau of the Ministry of Labour, Government of India, 2012, there were approximately 16,154 Trade Unions in India. Bharatiya Mazdoor Sangh continues to be the largest Trade Union in India Certain prominent Central Trade Union Organisations recognized by the Ministry of Labour, Government of India are AITUC (All India Trade Union Congress), INTUC (Indian National Trade Union Congress), and SEWA (Self Employed Women’s Association). The trade unions are often affiliated with larger federations.

Question 4.
Significant Environmental Movements in India
Answer:
The environmental movement surrounds issues related to ecology, health, human rights, tribal rights eco-feminism, etc. Harsh Sethi has presented five prominent categories of struggles associated with environmentalism, namely

• forest and forest resources
• land use
• water
• anti-dam
• against different types of pollution and marine resources.

Some significant environmental movements are mentioned below:
(i) Chipko Movement
It was started by Amrita Devi, marked by the Gandhian principle of non-violence, and is known for the active participation of women in it. Chipko stands for ‘hug-the-tree’. The movement was started in 1973 in Chamoli district, under the leadership of Sunderlal Bahuguna.

The livelihood of inhabitants residing there is closely linked to the forests. However, demographic and economic factors led to indiscriminate use of forests resulting in deforestation.

Processes of industrialisation and development led to improvement in the means of transport and communication.

People involved in developmental projects challenged the established claim of local people on forests. Loss of means of livelihood affected and angered people leading to the emergence of the movement.

In April 1973, when the contractors along with the workers reached Mandal village to cut trees and to clear jungles spaces allotted to them by the State government, the inhabitants resisted this action of the government, and to mark their protest they hugged the trees. The action happened at a mass level, as a result of which the authorities had to retreat. The women of the village also participated in the protest. This incident boosted the morale of several other groups facing similar problems to get together and to protest against deforestation.

(ii) Narmada Bachao Andolan
In the post-Independence period, several large-scale dam projects were sanctioned. The impact of building dams in most cases is displacement, which leads to loss of livelihood for tribal and local people.

Narmada is the largest West-flowing river supporting the habitat, which includes tribal and rural pockets also. The construction of the Sardar Sarovar Dam on the river Narmada would have generated huge revenue for the government. The supporters claimed that it would have been a source of power and drinking water to the neighbouring settlement, villages, and towns.

When it was realised that the building of a dam would deprive local inhabitants of their livelihood and displace them, the need to mobilise and protest against such a venture was felt. In 1985, the Narmada Bachao Andolan (NBA) emerged as one of the powerful resistance movements under the leadership of Medha Patkar.

It became an international movement and thousands of_ activists from India and abroad joined hands against the construction of this dam. In October 1994, Medha Patkar went on an indefinite dharna to pressurise the three State governments.

The movement suggested the use of alternative methods for the generation of electricity and adequate rehabilitation of the displaced.

The Narmada Bachao Andolan has brought issues of sustainable development to the forefront. It has questioned the validity of policy decisions about development and the utility of the same.

3. Write differences.

Question 1.
Social change and Social movement
Answer:

Social change	Social movement
(i) Meaning: A social change is a change in social structure and social relationships.	(i) Meaning: A social movement is a collectivity or a collective enterprise to establish a new order of life.
(ii) Feature: Social change is a continuous and ongoing process.	(ii) Feature: Social movements are directed towards some specific goals.
(iii) Direction: Social change does not follow any sequence.	(iii) Direction: A social movement has a life cycle – it emerges, operates for the specified cause, and declines.
(iv) Planned/Unplanned: Social change is embedded in society, it may not always be a deliberate and conscious struggle.	(iv) Planned/Unplanned: A social movement is an organized and planned activity.
(v) Universality: Social change is universal and inevitable in society.	(v) Universality: Social movements cannot be said that they are universally present all the time in all societies.
(vi) Effects: Social change effects are seen in all social, economic, political, and cultural aspects of society.	(vi) Effects: Social movement’s effects are seen in certain specific aspects of society.

4. Explain the following concepts with examples.

Question 1.
Women’s Empowerment
Answer:

• Women’s Empowerment includes the action of raising the status of women through education, raising awareness, literacy, and training.
• Women’s empowerment is equipping and allowing women to make life-determining decisions through the different problems in society.
• The basic objectives of women’s empowerment is equal rights for women elimination of discriminatory practices, realisation, and actualisation of women’s potential to empower themselves.
• Example – Women from different professions like journalism, academics, medicines, and corporates have enthusiastically joined in the mission of empowering women.

5A. Complete the concept map.

Question 1.

Answer:

Question 2.

Answer:

Question 3.

Answer:

Question 4.

Answer:

Question 5.

Answer:

5B. State whether the following statements are True or False with reasons.

Question 1.
Social movements are individual actions.
Answer:
This statement is False.

Social movements are not an individual action it involves collective action. Social movements take place when a large group of people comes together to achieve a common goal to promote or resist change in society.

A single individual cannot demonstrate or struggle alone to change the social system. It is a type of group, of action that involves the collective action of individuals or organisation.

When a group of people develops a sense of dissatisfaction and discontent towards certain decisions taken by the authority, they feel frustrated and unhappy. Such a feeling can result in a sense of social injustice, eventually culminating in a movement.

For example, the roots of the Women’s Movement can roughly be traced to the beginning of the 19th century, when small groups of women and a few enlightened (progressive) men addressed the issue of the unequal status of women in India. Thus, a social movement is a collective effort.

Question 2.
A social movement is oriented toward bringing about social change.
Answer:
This statement is True.

Social movements and social change are interconnected. This implies that every social movement aims to alter society and thus is instrumental in bringing about change.

The social movement demands change. Social movements when takes place it aims to alter society.

The social change may be to establish a new order of life or it resists change initiated by authorities thus social movement’s promises to bring about social change. It takes decades to bring about change in the way things have always been done or sometimes to prevent such a change from coming about.

The Women’s Movement started in the British period with social reforms, brought about changes for women The Workers’ Movement focuses on sees the emergence of trade unions to protect the rights of the workers in an industrializing society.

These are examples of social movements establishing a new order of life. The Environmental Movement has concentrated on the various issues affecting the environment is an example of resisting change.

Question 3.
The national movement witnessed decreased participation of women.
Answer:
This statement is False.

The Nationalist Movement witnessed increased participation of women. The impact of Gandhiji on the thought and participation of women was manifold. Women became aware of their rights and mobilised to fight for political independence. Women participated in large numbers in protests and agitations during the independence struggle. When men freedom fighters were imprisoned their women counterparts handled the difficult and challenging circumstances.

Women activities participated in the national movement, women leaders like Kasturba Gandhi, Yijayalakshmi Pandit, Annie Besant, and Sarojini Naidu and many more participated in various movements like Civil Disobedience Movement, Women Suffrage, (right to vote) Home Rule Movement, etc. In addition, Muthulaxmi Reddy, Rajkumari Amrit Kaur, Sarala Devi, Sucheta Kriplani, Aruna Asaf Ali participated in the Non-violence Movement. The Quit India Resolution passed in the year 1942, addressed women as ‘Disciplined Soldiers of Indian Freedom.

Mahatma Gandhi was an instrumental force in bringing women into the fold of the national movement. His thoughts influenced women to fight for political independence thus participation of women in various freedom struggles made them speak up for their rights and the importance of living life as conscious human beings.

Question 4.
The scope of the environmental movement is limited in bringing about changes in society.
Answer:
This statement is False.

The scope of the movement is wide and inclusive in the sense it has incorporated within its folds, categories that are marginalized for different reasons, like tribal, farmers, and women. The movement has utilized non-violent yet, assertive means to present its agenda of preservation of the environment.

Environmentalism is a broad philosophy. It is centered on a genuine concern for the conservation and improvement of the habitat around us, more specifically the environment and civilization. Several direct and indirect threats to the well-being of human life are perceived as an inevitable consequence of modernisation and industrialisation.

Thus, the scope of environmental movements is not limited, as it covers a wide range of issues.
The Movement stressed on protection of the environment, save forest life, ecology, health, and human rights issues, etc.

This movement inspired many activists from different backgrounds and villagers. They came together to fight for their rights and save the environment.

The spatial scope of various environmental movements ranges from being local to almost global level bringing about drastic changes in the society.

Question 5.
Several revolts by peasants and farmers took place during the early part of British rule.
Answer:
This statement is True.

The early part of British rule was marked by an exploitative revenue system. The farmers and peasants had to rely on money-lenders to pay Lagaan (Taxes) to the British authorities. During this phase, the Zamindari system became prevalent, through which landlords could snatch away land from poor farmers when the farmers were unable to pay taxes.

Many small cultivators lost their rights over their hereditary land and resources. The problem was further compounded by famines and natural calamities during this period. Indebtedness increased and exploitation multiplied.

This led to massive discontent among farmers. Several revolts took place during this period. To name a few, the Deccan riots against money lenders, the upsurge by Bengal tenants against Zamindari, the Punjab Kisan struggles against money lenders, etc. During 1917-18 two peasant struggles led by the National Congress are important, namely, the Champaran Struggle in Bihar against indigo planters and the Satyagraha Movement of the peasants in Kaira against the collection of land revenue in a situation of crop failure. The Congress formed Peasant Committees to take note of the unrest and demands of peasant grievances.

Question 6.
The Post-Independence period witnessed a slowing down of the Women’s Movement.
Answer:
This statement is True.

The Post- Independence period witnessed a slowing down of the Women’s Movement because political independence overshadowed its focus and purpose. The Constitution of India incorporated several clauses highlighting equality and justice to the Indian citizens, men, and women alike.

Several issues like tribal unrest, economic crisis, and student agitation led to collective struggles and protests, thus taking away the singular focus of the women’s movement.

A committee was formed to study the status ‘Towards Equality’ addressed issues of invisibility of women, patriarchy, and violence against women.

The committee published its report in the year 1974. The findings of the report proved to be of pivotal importance because they brought to the forefront the discriminatory and exploitative practices against women in Post-Independent India.

This phase of the Women’s Movement focused more on violence against women, sex stereotyping, and further legislative demands for the equality of women.

6. Answer the following question in detail in about 150 words.

Question 1.
“Farmers continue to suffer in India”.
With reference to this statement, Discuss the Farmers’ struggle in India is documented with reference to the following important phases and comment on how the movement has affected them
(i) Emergence of Kisan Sabhas
(ii) Post-Independence period
Answer:
India is predominantly an agricultural country. A majority of the Indian population follows agriculture-related occupations. Farmers are a geographically scattered category.

Unequal distribution of land, the uncertainty of rainfall, shortage of quality seeds, pesticides, etc., lead to less yield and is the root cause of farmers’ poor situation, it seems due to industrialisation, urbanisation, and globalisation primary sector is neglected and farmers are forced to commit suicide. However, instances of the consolidation of their power as a response to unrest and suppression are documented in Indian history.

(i) Emergence of Kisan Sabhas (1922 to 1946)
The initiative by the Congress party to support the interests of landlords and Zamindars triggered a protest among the farmers. The Congress supporting the capitalists did not go down well with a section of struggling farmers.

In 1926-27 many Kisan Sabhas were organised in Bengal, Punjab, and Uttar Pradesh with revolutionary plans in mind. The Kisan Sabha movement started in Bihar under the leadership of Swami Sahajanand Saraswati, with the purpose of -raising voices against the Zamindari system. The representatives of the Kisan Sabhas from Bihar and Uttar Pradesh, presented a memorandum in the All-Party Conference, covering the major demands.

Two struggles of the peasantry of Bardoli district (Gujarat) broke out in succession; the first in 1928-29 and the second in 1930-31. The movement gathered momentum in the 1930s. In 1935, the first Kisan Congress was held which was successful in putting forth the unrest and agony of farmers. This resulted in the formation of the All India Kisan Sabha.

The struggle spread to the other parts of India as well. In Punjab, the farmers’ movement erupted under the leadership of Raja Mahendra Pratap. The Ghadar party played a very important role in mobilising farmers and peasants of Punjab together. In Gujarat, Mahatma Gandhi led the struggle of poor farmers against the British government in Kheda. In the Southern belt (e.g. in Andhra Pradesh), the struggle erupted against the Forest Law. This phase is also characterised by the worsening of peasant position, consequently culminating in a series of revolts and rebellious actions.

(ii) Post-Independence period
Political independence did not translate into the improvement of the conditions for peasants and farmers. The emergence of the farmers’ movement in the Post-Independence era can be located somewhere in the 1970s. Understandably the unrest was felt in the States that was agriculturally, commercially developed States, in their economic orientation. E.g. Punjab, Haryana, Uttar Pradesh, Maharashtra, Gujarat, Karnataka, and Tamil Nadu. New Ideological perspectives influenced the course of the movement in the Post¬Independence era.

In the 1960s and 70s, the movement became more organised. Charan Singh became a very important name in the farmers’ struggle. He opposed heavy mechanisation and industrialisation; and championed low capital investment in agriculture. He formed the Bharatiya Kranti Dal (BKD) and the Bhartiya Lok Dal (BLD) in 1974.

By the 1970s farmers started forming their groups, without the backing of any political organisation. In 1973 a convention of farmers was held in New Delhi; it was followed by yet another convention in 1978. It presented a 20-point charter of demands to the government. Demands like representation of farmers on decision-making bodies, bridging the imbalance between agriculture and industry, etc., were included during this time.

Tamil Nadu and Punjab witnessed the emergence of strong farmers’ organizations. In 1980, the formation of the Shetkari Sangatana under the leadership of Sharad Joshi a d Karnataka Rajya Ryot Sangh under the leadership of M. D. Nanjundaswamy are milestones in the Farmers’ movement in India.

With the processes of industrialisation and globalisation, conditions have changed rapidly for farmers. With seasonal fluctuations apathy of the government and negligence by the masses, farmers continue to suffer in India. Farmer’s suicide has become a common affair. In March 2018 thousands of farmers from different parts of Maharashtra got together to march to Azad Maidan (Mumbai), to convey to the government their grievances and frustrations.

For the first time ever, the term ‘Farmers’ Strike’ was used by media personnel, when farmers ignored the market in disgust, throwing agricultural produce on roads. A radically new chapter was added to the farmers’ movement in India.