Chapter 1

Chapter-1.
ONE MARK QUESTIONS
Q: What is economic growth?
A process where by real per
capita income increases
over a long
g period
p
of time.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: what is economic development?
Economic Growth coupled
with the structural changes in
the Economy.
y

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatisdualeconomy?

Coexistenceofbothancient
andmoderntechnologiesinthe
economy.
y

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whousedthetermsustainable
developmentforthefirsttime?

Brundtland
d l d Commission.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WritetheformulatofindPQLl.

LEI IMI BLI

PQLI= LEI+IMI+BLI
3

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatisthemeaningofhuman
developmentindex?
Measurementofhuman
fh
developmentthroughlongetivity,
healthandeducation,andstandard
p p
oflifeofthepeople.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WritetheformulatofindHDI.

LEI+EAI+SLI
HDI
HDI=
3

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatisprimarydata?

Datawhichisoriginally
g
y
collectedbyaninvestigatorfor
the first time
thefirsttime.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Writethemeaningofsecondary
data.

Datawhichisalreadycollected
D
t hi h i l d
ll t d
byothers.

Chapter-1.
ONE MARK QUESTIONS
Q: Mentionthesourcesofsecondary
Mention the sources of secondary
data.
A) PUBLISHEDSOURCES:
PUBLISHED SOURCES
i)Govt.andnongovt.orgns.
ii) Privateagencies.
iii)Recordsofvariousdepts..
Businessenterprises,research
reports.

Chapter-1.
ONE MARK QUESTIONS
Q: Mentionthesourcesofsecondary
Mention the sources of secondary
data.
A) PUBLISHEDSOURCES:
PUBLISHED SOURCES :
i)Govt.andnongovt.orgns.
ii) Privateagencies.
ii)
Private agencies
iii)Recordsofvariousdepts..
Business enterprises research
Businessenterprises,research
reports.
B) Un p blished Reports & Records
B)UnpublishedReports&Records

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatistimeseriesdata?

Datacollectedonthesame
D
t
ll t d
th
entitywithdifferenttime
period.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatiscrosssectiondata?

Datacollectedondifferent
D
t
ll t d
diff
t
entitiesforasingletime
period.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatissurveydata?

Datacollectedthroughsurvey
D
t
ll t d th
h
orsampleorenquiry.Ex.Exit
pollsurvey.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatiscensusdata?

Recordofeachandeveryitem
R
d f
h d
it
oftheUniverse.Ex.Census
onceineverytenyears.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatiscensusdata?

Recordofeachandeveryitem
R
d f
h d
it
oftheUniverse.Ex.Census
onceineverytenyears.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisaTable?

Systematicarrangementof
Statisticaldataincolumns&
Rows.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisBarDiagramme?

Presentationofdatawiththe
P
t ti
f d t ith th
helpofequidistantrectangles.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisPieDiagramme?

Representationofdatainthe
formofacirclewhichincludes
different segments
differentsegments.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisStructuralAdjustment
Programme?

Themicroeconomicmeasures
Th
i
i
orpoliciesadoptedbythe
govt.tobringthechangesin
the structure of the economy
thestructureoftheeconomy.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: Whatisstabilizationprogramme?

Measurestomaintainbalance
andtoavoidhighervariations
in the economy
intheeconomy.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhenwasNewEconomicReforms
introduced?

Intheyear1991

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisGlobalisation?

OpeningupoftheIndian
economytoworldmarketby
attaining International
attainingInternational
competitiveness.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: GivethemeaningofPrivatisation.

SaleofGovt.ownedequityin
Nationalizedindustriesor
other commercial enterprises
othercommercialenterprises
topvt.Investors.

Chapter 1
Chapter-1.
ONE MARK QUESTIONS
Q: WhatisLiberalisation?

Removalofcontrolsand
hurdlesimposedbyGovt.on
the economy.
theeconomy.

TWO MARKS QUESTIONS

Q: Mentionanyfourdifferencesbetween
economicgrowthanddevelopment.
i
th d d l
t
GROWTH
Quantitative
Measurementin
termsofPCI.
MacroEconomic
study.
Narrowconcept.
p

DEVELOPMENT
Qualitative
Intermsof
NationalIncome.
MicroEconomic
study.
Widerconcept.
p

TWO MARKS QUESTIONS

Q: Mentionthefeatures(objectives)
of sustainable development
ofsustainabledevelopment.
Acceleratingeconomicgrowth.
Meetingthebasicneeds.
Improvingthelivingstandard.
p
g
g
Maximising thenetbenefitsof
economic development
economicdevelopment.
Inter GenerationalEquity.
Clean environment Protection
CleanenvironmentProtection

TWO MARKS QUESTIONS

Q: Mentionanyfourfeaturesof
developed countries
developedcountries.
HighPercapitaandNationalIncome.
HigherIndustrialization.
Highercapitalformation.
LowlevelofPovertyandUnemployment.
LowGrowthofPopulation.
HighlevelofTechnology.
hl l f
h l
LargeScaleproductionofgoodsand
services.Etc.,

TWO MARKS QUESTIONS

Q: Whatisthemeaningofdeveloped
country??Giveexamples.
country
Give examples
ADevelopedcountryisonewhichhas
achievedmaximumeconomic
development,wherethereishighPCI,
p
,
g
,
HighStandardoflivingandNatural
Resources are completely utilized Ex
Resourcesarecompletelyutilized.Ex.
USA,UK,AUS,CANADA,GERMANY
Etc.,
Etc

TWO MARKS QUESTIONS

Q: Whataredevelopingcountries?
Give examples
Giveexamples.
ADevelopingcountryisonewhichis
achievingprogressineconomic,
socialandothersectorsbyusingits
y
g
naturalresources.Ex.India,China,
Brazil etc
Brazil,etc.,

TWO MARKS QUESTIONS

Q: Listthedifferencesbetweenprimary
and secondary data
andsecondarydata.
PRIMARYDATA
Original
Original.
Collectedforthe
firsttime.
TheyarelikeRaw
materials.
Collectioniscostly.
Lessreliable.
No extra care is
Noextracareis
needed.

SECONDARYDATA
Not Original
NotOriginal
Alreadycollectedby
others.
Likefinalgoods
Cheapandeasy.
Morereliable.
Extracareismustin
use
use.

TWO MARKS QUESTIONS

Q: NamethepartsofaTable.
1.TableNo.
2. Title.
2.Title.
3.CaptionsandStubs.
4 Body of the Table
4.BodyoftheTable.
5.HeadNote
6 F t t
6.Footnote.
7.Sourcenote.

TWO MARKS QUESTIONS

Q: Statethestructuraladjustment
programmes.
programmes
1.IndustrialDeregulation.
g
2.Dislnvestments.
3 Public enterprises reforms
3.Publicenterprisesreforms.
4.Tradeandcapitalinflow
reforms.Etc.,
f
Et

TWO MARKS QUESTIONS

Q: Namethestabilizationprogrammes.
1.Fiscalsectorreforms.
2 Financial sector refirms
2.Financialsectorrefirms.
3.Foreignexchangeratepolicy
reforms.
f
4.WageandIncomepolicy
reforms.

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Thefollowingchangesinthe
The
following changes in the
Indianeconomyoverthelast60
years clearly prove that India is a
yearsclearlyprovethatIndiaisa
developingeconomy:

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
India sNetNationalProduct
Indias
Net National Product
(NNP)atfactorcost(national
income) was Rs 1 32 367 crore in
income)wasRs.1,32,367crore
in
195051andithasincreasedto
Rs.64,66,860crores in20102011
i

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?

ThereisariseinPCIfrom
There
is a rise in PCI from
Rs.3,687in195051to
Rs.54,527in20102011.

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?

Theshareoftertiarysector
The
share of tertiary sector
(servicesector)inthegross
domesticproducthas
increasedfrom27.5%in
195051to57.7%in201011

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Thereiscontinuousrisein
agriculturalproductionandIndia
has achieved the stage of self
hasachievedthestageofself
sufficiencyintermsoffoodgrains.
It is also able to build up buffer
Itisalsoabletobuildupbuffer
stocksoffoodgrainsforlean
periods.
i d

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Atpresentthereisgrowthofbasic
capitalgoodsindustries.Alargenumber
ofindustrieshavebeendevelopedin
largescalelikeironandsteel,heavy
chemicals,nitrogenous,fertilizersheavy
engineering,machinetools,aluminum,
petroleumproducts.Etc.

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Therehasbeensubstantial
progressinscienceand
technology. Sophisticated
technology.Sophisticated
machinesandinstrumentsare
produced within the country with
producedwithinthecountrywith
theindigenousscientificand
technicalknowhow.
h i lk
h

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Therehasbeenaconsiderable
improvementintheprovision
of infrastructural facilities and
ofinfrastructuralfacilitiesand
socialsecurityservices.

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Transportandcommunication
facilitieshavebeenextended
and there has been a
andtherehasbeena
remarkableimprovementin
power supply
powersupply.

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiaCalledadeveloping
economy?
economy?
Bankingandfinancialfacilitieshave
beenexpanded.
Overthelast60years,theinequalitiesin
O
th l t 60
th i
liti i
thedistributionofincomeandwealth
h
havebeenreducedthroughprogressive
b
d d th
h
i
taxation,increasedpublicexpenditure,
socialsecuritymeasuresetc.
i l
it
t

FIVE & TEN MARKS QUESTIONS

Q: WhyisIndiacalledadeveloping
economy?
economy?
Therehavebeendesirablechangesin
thesocietyoverthelast60years
becauseofurbanisation andthespread
ofeducation.Thecastesystem,
untouchability andsuperstitiousbeliefs
areonthedecline.

FIVE & TEN MARKS QUESTIONS

Q: ExplainEconomicReformsofMain
Sectors.
Sectors
Theeconomicreformsintroducedbythe
GovernmentofIndiasinceJuly1991may
bediscussedunderthefollowingsectors.
a:Fiscalsectorreforms
b:Industrialsectorreforms
c:Financialsectorreforms
d:Publicsectorreforms
e:Externalsectorreforms

FIVE & TEN MARKS QUESTIONS

a:Fiscalsectorreforms
Exemptionlimitofincometaxhas
increasedtoRs.1,60,000peryear
Reductionoftherateofincometax
from40%to30%.
Reductionofcorporationtaxon
domesticcompaniesto30%.
Reductionofexportimporttaxfrom
300%to58%.

FIVE & TEN MARKS QUESTIONS

Fiveyeastaxholidayhasbeenintroduced
f
forinfrastructureandsmallIndustries.
f
d
ll d
Newincentivestotaxsavers.
Increasingservicetaxesandreductionof
d d
f
subsidies,
Wideningthetaxbasetobringmore
id i
h
b
bi
revenuetothegovernment
f
forex:
withdrawaltaxof2005.
i hd
l
f
IntroductionofValueAddedTax.

FIVE & TEN MARKS QUESTIONS

b:Industrialsectorreforms
Abolitionoflicensingsystemandliftingall
Ab li i
f li
i
d lif i
ll
restrictionsonprivateindustries.
Reductionofpublicsectorindustriesto
R d ti
f bli
t i d ti t
only3areasandallotherIndustriesareleft
t
toprivatesector.Thisgaveabigboostfor
i t
t Thi
bi b t f
thegrowthofprivatesectorinIndia.
Foreigndirectinvestmentlimitwasraised
F i di t i
t
t li it
i d
from40%to51%

FIVE & TEN MARKS QUESTIONS

b:Industrialsectorreforms
Givingautomaticapprovalforforeign
Gi i
t
ti
lf f i
technologyagreements.
Government brought several changes
Governmentbroughtseveralchanges
intheMRTPAct.
Specialincentiveshavebeengivenfor
p
g
exportindustries.
Encouragingprivateindustriesin
infrastructuresectors.
Governmentallowed100%foreign
investment in selected industries,
investmentinselectedindustries

FIVE & TEN MARKS QUESTIONS

c:Financialsectorreforms
Liberalisingg therestrictionsonbanksandother
financial institutions.
Deregulationoflendingratesandgiving
freedomforbanks.
ProgressivereductionofCRR&SLR
Giving complete autonomy to public sector banks
Givingcompleteautonomytopublicsectorbanks.
Newgenerationprivatebanksandforeign
insurance companies are allowed tofunction
insurancecompaniesareallowed
to function
parallelwithpublicsectorbanks.
Empowermentofsecuritiesand
exchangeboardofIndia(SEBI)

FIVE & TEN MARKS QUESTIONS

d:Publicsectorreforms
Thenumberofindustriesreservedforpublic
p
sectorhavebeenreducedform17to3
Themajorsickindustrieswillbe
eitherclosedortransferredtoprivatesector.
Sellingthesharesofpublicsector
industriestoprivatepeople.
Governmenthasintroduced VRS
Reductionofbudgetarysupportto
d i
fb d
publicsectorindustries.

FIVE & TEN MARKS QUESTIONS

e:Externalsectorreforms
Reductionofimporttaxesfrom300%
Reduction of import taxes from 300%

tojust58%.
Fullconvertibilityofrupeeinthecurrent
Full convertibility of rupee in the current
accounthasbeenintroducedtopromote
exports.
Quotasystemhasbeenabolished
and bilateral
andbi
lateraltradeagreements
trade agreements
havebeenencouraged.
Sett g up o S s to e cou age e po ts
SettingupofSEZstoencourageexports