Economics
Std X 1.
Development R. Ayyappan
1.People have different notions of
developmental goals (or) People have
conflicting goals
Ø People
are diafferent from each other. Different persons can have different
developmental goals.
Ø What
may be development for one may be development for the other. It may even be
destructive for the other.
Ø Eg:
industrialist will support dams for the cheap and efficient electricity whereas
the people those who are living that area may oppose the project because they
will lose the livelihood due to the project.
2.What are the common goals of the
people?
Ø Material goals:
Regular job, decent wages or price for their product.
Ø Non material goals:
Equal treatment, freedom, security, and respect.
3.How World Bank classifies or compares
the countries or states?
Ø World
Bank classifies the countries on the basis of the average income or per capita
income.
Ø The
countries with per capita income of Rs.4,53,000 per annum and above in 2004 are
called rich countries.
Ø The
countries with per capita income of Rs. 37,000 or less are called low income
countries.
Ø Per
capita income of India is Rs.28,000 per annum.
4. Define average income or per capita
income and explain the defects.
Per capita income = Total
income
Total population
Ø Defects: Average income do not show the real picture,
it shows only average picture of the country.
Ø Average
income not shows the fair distribution or equitable distribution of the income
in the country.
Eg:
|
Country
|
I
|
II
|
III
|
IV
|
V
|
Average
|
|
Country A
|
9500
|
10500
|
9800
|
10000
|
10200
|
10,000
|
|
Country B
|
500
|
500
|
500
|
500
|
48000
|
10,000
|
5.How other criteria’s other than per
capita income influence the development or Kerala, with lower per capita income
has a better human development ranking than Punjab. Hence, per capita income is not a useful
criterion at all and should not be used to compare states. Do you agree?
Discuss.
Ø There
are factors like literacy and health are also important criteria like per
capita income.
Ø Yes
I agree per capita income alone is not a useful criterion to compare the
states.
Table 1
|
State
|
Per
capita income for 20012-13 (in Rs)
|
|
Maharashtra
|
1,04,000
|
|
Kerala
|
88,500
|
|
Bihar
|
27,200
|
Ø According
to table one Maharashtra in first place because of the high per capita income
but human resource development not only refers the income but also other
criterions like education and health. From table 2 we can understand how per
capita income alone cannot determine the development.
Table 2
|
State
|
Infant
Mortality rate
Per 1,000
(2012)
|
Literacy
rate (%)
2001
|
Net
attendance ratio for class 1-V
|
|
Maharashtra
|
25
|
82
|
64
|
|
Kerala
|
12
|
94
|
78
|
|
Bihar
|
43
|
62
|
35
|
Ø According
table 2, Kerala has positive ratios in education and in health even though less
in per capita income.
Ø Infant
mortality rate of Kerala is only 12 where it is 25 in Maharashtra, it shows Maharashtra
lacks behind the Kerala in health.
Ø Literacy
rate and Net attendance ratio also Kerala is better than the ratios of
Maharashtra.
Ø So
to measure the Human resource development, along with per capita income other
criteria’s like education, health are also important.
6.Human Development Report
Ø Human
Development Report published by UNDP compares countries based on the
educational levels of the people, their health status and per capita income.
Ø India
stands in 135th place in this report.
7.Life expectancy
: Average expected length of life of a
person at the time of birth.
8.HDI =Human Development Index
9.Why is the issue of sustainability
important for development?
Ø The
development very much based on resources.
Due to the exploitation and large scale use of resources are depleting
in a rapid rate.
Ø For
example : The oil reserves of middle east will exhaust in 78.1 years, in USA
within 12.1 years. In entire world the oil reserves will be exhaust in 53.3
years.
Ø In
our country the water level declined by 4 meters during past 20 years.
Ø Nearly
1/3 of the country overusing their ground water resources.
10.“We have not inherited the world from
our forefathers – we have borrowed it from our children.” - Comment
We have rights to use the resources for our living or
survival but if exploit the resources in greed it is not a justice to the
future generation. We don’t have those
rights too.
11.“The earth has enough resources to
meet the needs of all but not enough to satisfy the greed of even one person.”
The above mentioned statement was made by our father of
nation Mahatma Gandhi. According to him
human fair utilization of resources will not deplete the resources. Greed is a thing which does not have any
limit. The resources which satisfy our
needs are limited, exhaustible in nature, if we utilize for our need resources
will sustain for a long period otherwise they will vanish rapidly and our life
in the earth will be at stake.
12.In what respect the criterion used by
the UNDP for measuring development different from the one used by the World
Bank?
World Bank use only per capita income or average
income where as UNDP uses other
variables like literacy rate, Net attendance ratio, Life expectancy, Gross
enrolment ratio along with per capita income.
==============================================================
2.
Sectors of the economy
1.Describe the different sectors of the
economy?
Primary sector: Primary sector activities directly engage
with the nature. It produces food grains
and raw materials for the secondary sector.
Agriculture, Dairy, Fishing, and Mining comes under this sector.
Secondary sector: It covers industrial or manufacturing
activities.
Ex: sugar industry, Iron and steel industry etc.,
Tertiary sector:
these are activities that help the development of the primary and secondary
sectors. These activities, by themselves
do not produce a good but they are an aid or support for the production.
Ex: Transportation, Communication, Education, Banking
etc.,
2. How all the sectors are interlinked?
Ø Primary
sector provide raw material for the secondary sector. If primary sector unable to supply raw
material means secondary sector will not produce products.
Ø Secondary
sector makes primary sector prosperous.
If secondary sector not getting raw materials from the primary sector means the farmers
will not get market for their products.
Ø Raw
materials should reach the industry and final goods should reach the market, it
is not possible without transportation.
Apart from the transportation, labour, management, infrastructure are
also needed for the development of primary and secondary sector. It is provided by the tertiary sector. It links other sector with people. Without the support of tertiary sector nearly
primary and secondary sector effect less.
3. Trace the
historical change in sector
Total GDP
|
Year
|
Rupees in
crores
|
|
1971-72
|
500,000
|
|
2011-12
|
5,500,000
|
Share of sectors / Sectoral contribution towards the GDP.
|
Year
|
Primary
(%)
|
Sector
(%)
|
Tertiary
(%)
|
|
1971-72
|
44
|
22
|
36
|
|
2011-12
|
18
|
24
|
56
|
Share of sectors in
Employment (%)
The primary sector continues to be the largest employer
even now
Industrial sector outputs went up by more than 9 times
but employment generation has went up only 3 times
In service sector outputs went up by 14 times but
employment generation has went up by only 5 times.
4.Not all of the service sector is
growing equally well- comment the statement
Large
number of workers engaged in service sector are small shopkeepers, repair
persons, transport persons. Their earning are less.
There
are limited number of services that employ highly skilled and educated workers.
5.Under or disguised unemployment
When a person have less work or
working less than his potential or not having regular work, it is called under
or disguised unemployment.
Ex: More family members depends on small piece of
land.
Unorganized sector workers like
agricultural labours, constructional workers, painters, pettey shop workers
etc.,
6.National Rural Employment Guarantee
Act 2005 (NREGA 2005)
Ø Work
for 100 days for a family in a year
Ø Rs.100
per day
Ø Cleaning
the ponds, constructing the embankments, strengthening the walls of canals or
rivers and dredging works will be given to the NREGA workers.
|
7.Organised
sector
|
Un
organized sector
|
|
Ø These
organizations are guided by the laws provided by the central and state governments.
|
Ø These
organizations will not or partly follow the laws of the government.
|
|
Ø Workers
welfare will be given more preference.
|
Ø Workers
welfare will not be given much importance.
|
|
Ø There
will be job security
|
Ø There
will not be job security
|
|
Ø Workers
will be benefitted economically much.
|
Ø Workers
may be exploited
|
|
Ø There
will be a safe environment.
|
Ø They
will not give much importance to the safety of the environment.
|
|
Ø Ex:
Workers of Indian Railways
|
Ø Ex:
Daily wage farm labour.
|
8. How to protect the unorganized sector
workers.
Ø Laws: Factories Act,
Minimum Wages Act, Work man compensation Act, Labour law etc.,
Ø Regular
supervision on the institutions.
Ø Creating
awareness among the unorganized sector labour.
Ø Monitoring
agencies to monitor the functioning of the unorganized sector and labour
rights.
9. How to create more employment?
Ø Agriculture : Application of modern methods of farming –
availing loans from the banks, cold storage facilities, Dam and canals – value
added services transportation to the rural regions.
Ø Industries : Promoting local industries.
Providing technical and financial assistance to the industrial sector.
Ø Tertiary sector :
increasing the infrastructural facilities like transport, communication,
education, education, water, electricity etc.,
10.Differentiate
the sectors on the basis of ownership
|
Public
sector
|
Private
sector
|
|
Ø Capital
is generated from the government and the people.
|
Ø Capital
is provided by the individuals or group of people.
|
|
Ø The
main aim of the institution is service.
|
Ø The
main aim of the institution is profit.
|
|
Ø These
institutions follow all the laws provided by the government.
|
Ø These
institutions partly sometime will not follow any guidelines of government.
|
|
Ø These
are organized institutions.
|
Ø Mostly
unorganized institutions.
|
|
Ø There
will be a job security for the workers.
|
Ø There
will not be a job security for the workers.
|
|
Ø Ex:
NLC (Neyveli Lignite Corporation)
|
Ø Ex:
Tata Iron and Steel Company Limited.
|
==============================================================
chapter 3. Money and credit
1.
Barter system or What is double co incidence of wants? Or Barter system
Ø Goods
àGoods
Ø Exchange
of goods without using money.
Ø Ex: The shoe
manufacturer had to directly exchange shoes for wheat without the use of money.
Ø Drawback: The exchange is only possible when shoe
producer finds the wheat producer and at the same time wheat producer in the
need of shoe.
2.
How money avoids the double co incidence of wants?
Ø GoodsàMoneyàGoods
Ø Goods
will be sold for money and through the money earned from the commodity will
used to purchase the goods what a person wants.
Ø Ex: The shoe manufacture
sells the shoe for the money and he use the money to purchase the wheat.
3.
Which organization is responsible for issuing of currency in India ?
Ø Reserve
Bank of India is responsible for issuing of currency in India.
4.
How banks favours the depositors?
Ø Banks
giving interest for the depositors for their deposit.
Ø Banks
gives protection to the money of the depositors.
5.
What is demand deposit?
Ø The
deposits in the bank can be withdrawn on demand, these deposit are called
demand deposits.
6.
What is cheque?
Ø A
cheque is a paper instructing the bank to pay a specific amount to the person
in whose name the cheque has been issued.
7.
Mechanism of bank or How banks earns profit?
Ø People
deposit there surplus money in the banks. And banks give interest to that
deposit.
Ø Banks
gives the deposits to the barrower in the form of loan and charges higher rate
of interest than what they offer to the deposit.
Ø The
difference between what is charged from borrowers and what is paid to
depositors is the main source of income to the bank.
8.
How much money banks can hold as cash in India?
Ø Banks
in India can hold 15% of the deposit as cash.
9.
What is credit?
Ø Credit
refers to an agreement in which the lender supplies the borrower with money,
goods or service in return for the promise of future payment.
10.
How credits play a positive role? Or How credits promote the earning of a
people?
Ø Ex:
Salim has received an order for making 3000 pairs of shoes.
Ø Now
he needs money for the purchase of labour and raw material.
Ø He
took leather in credit from leather supplier.
Ø He
obtains advance payment from the trader who placed the order.
Ø He
manufactured the 3000 pairs of shoes and repaid the credit to the leather
supplier and trader.
Ø He
also earned good profit.
11.
How credits affect the people? Or How credits pushes a person into debt trap?
Ø Ex:
Swapna a farmer having 3 acres of land.
Ø She
takes loan from the money lender to purchase the pesticide who charges high
interest.
Ø But
her crop fails due to poor season.
Ø Now
she unable to repay the loan. So the debt increased very shortly.
Ø She
sold the part of the land and repaid the loan
Ø Credits
pushes a person into a debit trap when risk is more like agriculture and also
in taking loan for a high interest from a money lender.
12.What
is terms of credit?
Ø Interest
rate, collateral, mode of repayment and time period.
Ø Collateral
is an asset that the borrower owns (such as land, building, vehicle, livestock
and deposits with bank) and uses this as a guarantee to a lender until the loan
is repaid.
14.Differentiate
formal source of credit and informal source of credit.
|
|
Formal
source of credit
|
Informal
source of credit
|
|
1.
|
Availing loan
from banks and co operatives.
|
Money
lenders, traders, relatives, friends and others.
|
|
2.
|
Service
is the aim.
|
Profit is
the aim.
|
|
3.
|
Charges
less interest
|
Charges
very high rate of interest
|
|
4.
|
Reserve
Bank of India monitors these organizations.
|
No monitoring
agency involved in this process.
|
15.How
informal lender affect the people?
Ø Charges
high rate of interest.
Ø Larger
part of the earning will go in the repayment of the credit.
Ø Some
time the amount of repayment may go higher than the income of the borrower.
16.
How source of credit differ from the economic status of the people?
|
|
Class
|
Formal
source
|
Informal
source
|
|
1.
|
Poor
|
15%
|
85%
|
|
2.
|
House
hold with few asset
|
47%
|
53%
|
|
3.
|
Well off
household
|
72%
|
28%
|
|
4.
|
Rich
household
|
90%
|
10%
|
Ø Poor
people hesitate to go to banks for the credit because of the formalities, need
of collateral. They are able to get the loan from a private moneylender easily.
Ø Ignorance
is also one of the reasons for more credit from informal source.
Ø Sources of credit as per Rural household
in India 2012
Commercial banks= 25%,
cooperative Banks =25%, money lender =
33%, friends and relatives=8%
17.
How Self Help Group (SHG) works?
Ø 15-20
neighbourhood can join together form SHG.
Ø The
groups meet regularly and save the money, which varies from Rs.25 to Rs.100.
Ø Member
can take small loans from the group.
Ø After
two years is the group is regular in saving they are eligible for availing loan
from the bank.
Ø Members
can utilize that loan for a productive purpose.
18.
Advantages of SHG
Ø Poor
people will get the loan easily
Ø Money
lender can be avoided.
Ø Problem
of lack of collateral can be avoided.
Ø Rural
women to become financially self – reliant.
Ø Through
the meeting social awareness will increase.
19.
Grameen banks
Ø Grameen
banks are founded by the Dr.Muhammad Yunus of Bangladesh.
Ø It
was started in 1970.
Ø Now 2014
it has 8.63 million borrowers and spread around 81,390 villages of Bangladesh.
Ø Almost
all the borrowers are women and belong to poorest sections of the society.
Ø They
believe that if loans are available for lot of small people with appropriate
conditions, biggest development of wonder is possible.
20.
In what ways does the Reserve Bank of India supervise the functioning of banks?
Why is this necessary?
Ø RBI
monitors the cash balance of the banks.
Ø RBI
fixes the interest ratio to all banks.
Ø RBI
fixes the Cash Reserve Ratio.
Ø All
the banks have to submit the reports regularly.
Ø Due
the monitoring of the RBI the real purpose of banks can be achieved.
Ø The
banks cannot in exploitative process. The banks cannot charge very high rate of
interest and in humanistic conditions for credit.
=============================================================
Economics – Chapter 4.Globalisation and
Indian Economy
Ø MNC
is a company that controls production in more than one nation.
Ø MNC’s
set up office and factories for production in regions where land, labour, raw
material are available cheaply.
Ø Due
to large scale production MNC can reduce the production cost and sell at cheap
price.
2.
How a multinational company earns more profit?
Ø MNC’s
not only selling the goods globally but also produce the goods globally.
Ø Production
process is divided into small parts and spread out across the globe.
Ø Ex:
China provides cheap manufacturing location
Ø Mexico
and Easter Europe are useful for their closeness to the market of U.S.A and
Europe.
Ø India
has skilled engineers and also large English speaking population provides the
customer care services.
Ø So
MNC’s can cut the cost up to 50 – 60 percent.
3.
What is investment?
Ø The
money spends to buy the factors of production like land, building, machines and
equipment and labour are called investment.
4.
How local company will be promoted by a MNC or How MNC’s enter into the
country?
Ø MNC’s
provide money for additional investment to local small scale company.
Ø MNC’s
might bring the latest technology for production.
Ø Sometime
MNC’s buys the local companies and then expand the production.
Ø Ex
1:Cargil foods bought small companies like Parakh foods which had large
marketing network and also four oil refineries, now the control shifted to
Cargill.
Ø Cargill
is the largest producer of edible oil in India.
Ø Ex:2
Ford Motors came to India in1995 and tie up Mahindra and Mahindra a jeep and
truck manufacturing company in India. Invested 1700 crore, setup a large plant
at Chennai.
Ø By
2014 Ford produced 77,000 car in India, another 77,000 cars are exported to
South Africa, Mexico and Brazil.
5.
What is the basic function of foreign trade?
Ø New
market for the products
Ø More
choice for the consumer.
Ø Producer
can sell the goods not only in local market but also he is now exposed to
international market.
Ø Producers
in the two countries now closely compete against each other even though they
are separated by thousands of miles.
Ø It
is increasing the job opportunities.
6.
Merits of Globalization or advantages of Globalization.
Ø Increase
of foreign investment and foreign exchange.
Ø Flow
of technology globally.
Ø Movement
of labour, capital, raw material and technology.
Ø Integration
of markets
Ø Countries
are connected through the trade
Ø Advancement
of one part of the world will be shared to other part.
7.Using
of Information Technology in globalization
Ø Ex:
A news magazine published in London readers is designed in Delhi office.
Ø Delhi
office get the information from the internet and designing work is done on a
computer.
Ø After
printing, the magazines are sent by air or London.
Ø The
payments are made through e banking.
8.What
is liberalization?
Ø Removing
barriers or restriction set by the government is called liberalization.
Ø With
liberalization of trade, businesses are allowed to make decisions freely about the import and export.
Ø The
government imposes much less restriction over the tax and term and conditions
of trade.
9.Trade
barrier
Ø Tax
on imports is an example of trade barrier.
Ø Governments
can use trade barriers to increase or decrease the flow of a goods.
Ø Government
decide what kind of goods and how much of each should come into the country.
Ø Before
1991 there was more restriction over the imports in India. Only the essential
items like fertilizers and petroleum was imported a lot other goods were
restricted much to control the outflow of foreign exchange.
Ø During
1991 India accepted the Globalisation, Liberalisation and Privatization so the
trade barriers are lifted. And Indian market was very much opened to the
international trade.
10.
Impact of globalization in India
Positive
impacts
Ø Greater
competition for Indian producers.
Ø Quality
of goods improved and now they available at low cost.
Ø Local
companies are selling raw material to the foreign companies and earn lot of
profit.
Ø Top
Indian companies have been able to get benefit from the increased completion.
Ø Along
with foreign investment lot of newer technology also reached our country.
Ø Globalization
has increased job opportunities.
Ø Companies
like Tata motors, Infosys, Ranbaxy, Asian paints and Sundaram fasteners has
emerged as multinational companies.
Negative
impacts
Ø Many
local small scale manufacturers lost their opportunities.
Ø Many
Indian products could not meet the challenge of foreign goods.
Ø Due
to the closing of small scale industries many went for the lower income jobs.
Ø More
exploitation of labour in the name labour flexibility.
11.Why
foreign investors attracted towards India?
Ø Special
Economic Zones has been setup with world class facilities like electricity,
Water, Roads, Transport, Storage, recreational and educational facilities.
Ø Production
units in SPZ do not have to pay taxes for an intial period of five years.
Ø Government
has also allowed flexibility in the labour laws to attract the foreign
investors.
Ø Now
there is labour problems like intense pressure of work and low salary etc.,
12.
Struggle for a fair globalization
Ø People
with education, skill and wealth have made the best use of the new
opportunities. On the other hand there are many people who have not shared the
benefits.
Ø Fair
globalization would create opportunities for all, and also ensure that the
benefits of globalization are shared better.
Ø Policies
of the government must protect not only of the rich and the powerful, but all
the people in the country.
Ø Labour
laws should be implemented.
Ø If
necessary, the government can use trade and investment barriers. It can negotiate at the WTO for fairer rules.
13.Why
do developed countries want developing countries to liberalise their trade and
investment?
Ø
Human resource of the developing country can
be utilized.
Ø Developed
countries can get raw material from the developing countries.
Ø Developed
countries can utilize the cheap labour power of the developing countries.
Ø Developed
countries can get big market for their products.
Ø Commodities
can be produced at a cheaper cost due to the availability of the big market and
cheap conditions.
=======================================================
Economics – Chapter 5.Consumer
Rights
1.How
consumers are exploited in the market place?
Ø Shopkeepers
can give the commodity weigh less that the fee charges.
Ø Possibility
of giving adulterated goods.
Ø Giving
sub standard goods.
Ø Giving
defective goods.
2.How
do producers give false claims?
Ø By
giving exaggerated information in media
about their products.
Ø Ex :
A milk powder selling company claimed that their powder is better than the
mother’s milk, after a long struggle the company accepted.
Ø Cigarette
manufacturing companies in earlier not accepted that their product could cause
cancer.
3.Consumer
movements
Ø In
India consumer movements started with Rampanth food shortages, hoarding, black
marketing, adulteration of food and edible oil.
Ø Consumer
organization formed in the 1960’s.
Ø Till
the 1970’s consumer movement were largely engaged in writing articles and
holding exhibition.
Ø 1985
united nations adopted the UN guidelines for consumer protection.
Ø Today
consumer international has become an umbrella body of 240 organisations from
100 countries.
Ø In
1986 Indian government has passed a act called Consumer Protection Act 1986
called COPRA.
4.Right
to be informed
Ø Producer
has the responsibility to give the information about the product like batch no, Manufacturing date, Expiry date,
compositions, quantity, MRP etc.,
5.Right
to choose
Ø The
shopkeeper should not compel us to purchase particular product.
Ø Ex: Many times shopkeeper can tell that gas
cylinder will be given when Gas stove is purchased.
6.Right
to seek redreesal
Ø Consumer
has the right to seek redreesal against the unfair trade practices and
exploitation.
Ø Consumer
can go to the Consumer councils, District Consumer court, state Consumer court,
National Consumer court.
7.Right
to represent:
Ø This
act has enabled us as consumers to have the right to represent the consumer
court.
8.ISI
and Agmark
Ø These
organizations are standard organizations ensure the quality of the product.
Ø These
organizations develop quality standards for many products.
Ø It
is not compulsory for the producers to follow standards.
Ø Risky
products like LPG cylinders, food colours packaged drinking water and cement
etc., it is mandatory.
==========================================================
Thxs sir it's very useful by Shri Bharath 10 C
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