Eco MCQs ch 1
DEVELOPMENT
MULTIPLE CHOICE QUESTIONS
Which is the most important attribute for comparing the development of countries?
Resources (b) Population (c) Average income (d) None of the above
Which one of the following countries has higher HDI rank than India?
Sri Lanka (b) Nepal (c) Bangladesh (d) Pakistan
Which one of the following is the development goal of landless rural labourers?
Freedom to decide what he is able to do. (b) More days of work and better wages. (c) Less days of work. (d) Good climate conditions.
Which one of the following statements defines Literacy Rate? :-
Total literate population divided by total population
Total literate population divided by total illiterate population
Proportion of literate population in the 18 and above age group
It measures the proportion of literate population in the 7 years and above age group
If there are five persons in a family and their total income is Rs 20,000/- what would be the average income of each person. ?
(a) Rs. 6000/- (b) Rs. 4000/- (c) Rs. 5000/- (d) Rs. 10,000/-
Which of the following states has low Infant Mortality Rate?
(a) Punjab (b) Kerala (c) Bihar (d) Orissa
Which one of the following is not a measure of development in the Human Development Report of the UNDP ?
Per capita income in US $. (b) Educational levels of the people.
(c) Body Mass Index. (d) Life Expectancy at birth.
Development of a country can generally be determined by:
(a) per capita income (b) average literacy level rate
(c) Health status of its people (d) None of the above
Which one of the following countries has the largest size of illiterate population in the age group of 15□ in the world?
(a) India (b) Srilanka (c) Myanmar (d) Bangladesh
The value of all final goods and services produced within a country during a particular year is called as :
(a) Gross Domestic Product (b) Net Domestic Product
(c) National Product (d) P roduction of Tertiary Sector
Which one of the following is not a component of Humam Development Index? (a)
Life expectancy (b) Gross enrolment ratio
(c) Per Capita Income (d) National Income
According to world bank rating which of the following countries are called low income countries?
Countries having per capita income less than Rs. 37,000 per annum.
Countries having per capita income less than Rs. 47,000 per annum.
Countries having per capita income less than Rs. 57,000 per annum.
Countries having per capita income less than Rs. 67,000 per annum.
Which of the following areas of the world has the largest crude oil reserves ?
(a) Middle East (b) Russia (c) China (d) USA
When was National Rural Employment Guarantee Act implemented?
(a) 2005 (b) 2003 (c) 1905 (d) 2007
Development of a country can be determined by:
(a) its average literacy level (b) health status of people
(c) per capita income (d) All of these
Which one of the following has prepared Human Development Report ?
(a) UNO (b) WHO (c) IMF (d) UNDP
Life expectancy at birth means:
average expected length of life of a person at the time of birth
average expected length of a life of a person at time of death
average expected length of a child at time of birth (d) None of above
‟Income alone is not a completely adequate indicator of development of a
country.” Which one of the following is NOT correct with regard to this statement?
Money cannot ensure a pollution free environment for individual.
Some people earn more than others do.
Money helps us buy only material goods and services.
Money does not ensure respect and dignity for individuals.
Development goals of different sections of our society can be achieved by :
(a) Force (b) Democratic political process (c) Violent agitation (d) Terrorism
The Government of India has implemented the Right to work in :
(a) 100 districts (b) 200 districts (c) 300 villages (d) 500 villages
Human Development Index compares countries based on which of the following levels of the people?
(a) Educational level (b) Health status (c) Per capita Income (d) All the above
Which one of the following states of India has a high infant mortality rate according to data 2003?
(a) Kerala (b) Bihar (c) Uttar Pradesh (d) Punjab
Which of the following was the objective of NREGA 2005?
To control the unorganized sector in rural areas.
To provide 100 days employment in a year by the government.
To control the flow of money from private sector to public sector.
None of the above.
India’s HDI rank in the world is :
(a) 125 (b) 115 (c) 126 (d) 131
Money cannot buy :
Medicines (b) Clothes (c) Pollution free environment (d) None of these
Body Mass Index is calculated by the formula :
Height/Weight (b) Weight/Height (c) Weight/Height (d) Weight/Height 2
Which of the following is an example of the service sector?
Horticulture (b) Pottery making (c) Dairy farming (d) Storage
Which of the following is true of the people’s goals in addition to higher income?
(a) Equal treatment (b) Freedom (c) Respect and security (d) All the above
Which of the following do we get when we divide the national income of a country by its total population?
(a) Per capita income (b) Gross Development Product (c) Human Development Index (d) None of the above
Which of the following agencies estimates the Gross Domestic Products (GDP) in India?
All the state governments. (b) An autonomous body.
c) A ministry of the Union Government. (d) None of the above.
Suppose in a country X 20,00,000 children were born in the year 2009, out of these 1,20,000 died between the age group of 1 to 5 years and 1,20,000 died before 1 year of age. Infant mortality rate per 1000 children will be.
(a) 90 (b) 30 (c) 60 (d) 80
Workers in agriculture sector are :
underemployed (b) over employed (c) unemployed (d) None of these
The developmental goals that people have are not only about better income but also :
about the expenditure. (b) about other important things in life.
(c) about the expected improvement in future. (d) about the difficulties to come.
Per Capita Income is calculated in dollars because:
(a) all countries can be compared easily (b) USA holds a dominating position
(c) dollar is the only reliable currency in the world (d) dollars are easily convertible.
What will happen if the government fails to provide 100 days employment under NREGA?
(a) No extra benefit will be given (b) The officer – in – change will be punished
(c) Unemployment allowance will be given (d) Food grains will be provided
If the Body Mass Index of a person is more than 25, then he/she is said to be considered:
(a) over weight (b) under nourished (c) under weight (d) healthy and fit
Low Infant Mortality Rate in Kerala is due to:
(a) very high per capita income (b) adequate provision of basic health and educational facilities (c) being a small state (d) high Life Expectancy
Public and private sectors are classified on the basis of:
(a) employment conditions (b) the nature of economic activities
(c) ownership of enterprises (d) number of workers employed in the enterprise.
Which among the following is the most important attribute for comparing the development of countries?
(a) Resources (b) Population (c) Average Income (d) Health
Per Capita Income of all the countries is calculated in:
(a) Pound (b) Dollar (c) Rupee (d) Euro
Kerala has the lowest:
(a) Infant Mortality Rate (b) Literacy Rate (c) Birth Rate (d) Life Expectancy
Which one of the following, best explains the statement ‘Countries with higher income are more developed than others with less income’?
(a) More income enables you to spend more. (b) More income means more of all things that human beings need. (c) More income enables a country to dominate. (d) More income has nothing to do with the development.
The goods which are used up in producing final goods are called:
(a) natural goods (b) manufactured goods
(c) intermediate goods (d) commercial goods
Which indicator from amongst the following is considered to be the most important measure of development?
(a) Health and education (b) Information Technology
(c) Strong defense (d) Leisure and entertainment
Which one of the following is the basis to measure the development of a country according to the World Bank?
(a) Literacy Rate (b) Per Capita Income
(c) Gross Enrolment Ratio (d) Life Expectancy
Common developmental goals for all the citizens of a country could be:
(a) Rising incomes and rapid consumption of petroleum (b) Rising incomes and very high cost of living (c) Regular work, better wages, and decent price for their corps
(d) None of the above
The major objective of implementing NREGA 2005 was to:
(a) Increase crop productivity (b) Make lazy people work (c) Provide employment to those who are able to work and also guarantee employment for 100 days in a year. (d) Provide unemployment allowances to rural women.
Which one of the following is a useful measure for comparison between countries?
(a) National Income (b) Per capita income (c) Total income (d) Income from tertiary sector
Give full form of NREGA.
(a) National Rural Employment Guarantee Act. (b) National Regional Employment Guarantee Act. (c) National Regional Employment Generation Act. (d) None of these
HDI stands for:
(a) Heavy Developed Industrial (b) Human Development Index
(c) Highly Developed Infrastructure (d) Highest Development Index.
Which of the following is included in primary sector?
(a) Changing of natural products into other forms (b) Some process of manufacturing. (c) Borrowing money from the bank. (d) Sowing seeds and using manure and water to get grains.
Which of them generally do not find themselves in the unorganized sector?
(a) Schedule castes (b) Schedule tribes (c) Rich families (D) Back ward communities
Which of the following do we get when we divide the national income of a country by its total population?
(a) HDI Rank (b) Literacy Rate
(c) Human Development Index (d) Per Capita Income
Per capita income is also known as :
(a) National Income (b) Average Income (c) Total Income (d) Capital based Income
Which one of the following countries of Indian subcontinent has the highest rank in H.D.I ?
(a) Bhutan (b) Bangladesh (c) India (d) Pakistan
Which economic sector has the highest share in GDP in 2003 among the following
(a) Mining (b) Agriculture (c) Industrial (d) Service
Identify from the following intermediate goods :
(a) Wheat (b) Biscuits (c) Flour (d) Suizee
The development goals can be classified which one of the following groups ?
(a) Material and Spiritual (b) Physical and mental
(c) Short term and long-term (d) Material and non-material
Which one among the following is the material good ?
(a) Equal opportunities (b) High level of income and better quality of living
(c) Freedom (d) Security and respect
The main limitation of average income to be used as a measure of development is that it :
(a) cannot be calculated correctly. (b) does not address environment issues.
(c) is a lengthy process. (d) does not consider equitable distribution of income.
Gross Enrollment Ratio means enrollment for :
(a) Primary education (b) Primary and secondary education
(c) Higher education (d) All three levels of Education
What would be the development goals of a farmer who depend only on rain for growing crops ?
(a) Inundational canal (b) Timely rain (c) Better irrigation facility (d) Hand pumps
In which one of the following situations underemployment occurs ?
(a) Do not work. (b) Want to work but not getting job.
(c) Working less than what they are capable of doing. (d) Not paid for their work.
Which of the following is NOT a common aspiration of all people ?
(a) Freedom (b) Security (c) Equality (d) Leisure
Wood used for making furniture is :
(a) an intermediary good (b) a finished good (c) a final good (d) a raw good
Which one of the following gives the correct meaning of GDP ?
(a) It is the value of final goods and services. (b) It is the value of imports and exports. (c) It is the value of all finished product. (d) It is the value of all goods and services plus income from abroad.
Tertiary sector is also called –
(a) Industrial Sector (b) Service Sector (c) Government Sector (d) Primary Sector
Identify the final goods from the following.
Maida (b) Biscuits (c) Wheat (d) Flour
QUESTIONS AND ANSWERS
Explain the following terms :-
Economic development: - Economic development is defined as the continuous and sustained improvement in the general well-being of the people.
National income: - National income is the sum of values of all the final goods and services produced in a country in a year along with the income from abroad.
Per-capita income:- It is the average income of a person. It is calculated by dividing national income with population.
Life expectancy:- It is the average life span of an individual.
Infant mortality rate: - It refers to the number of child deaths before attaining the age of one of every thousand live births.
Literacy rate :- It measures the proportion of literate population in the 7 and above age group.
Net attendance ratio :- It is the total number of children of age group 6-10 attending school as percentage of total number of children in the same age group.
Summarise the important ideas of the chapter ‘DEVELOPMENT’
Different people can have different developmental goals.
What may be development for one may not be development for the other. It may even be destructive for the other.
Money or income is one of the main goals of most of the people.
Along with money, people also need many other things such as peace, security, equal treatment, friendship, respect from others etc. So people have a mix of development goals.
NATIONAL DEVELOPMENT
Different person can have different as well as conflicting notion of a country’s development.
Income is one of the main indicators of a country’s development. So, income is used to compare countries.
National income cannot be used as a criterion because different countries have different populations. So, the World Bank uses average or Per capita income as criterion.
Income alone cannot provide welfare to the people. So, along with Per capita income, health and education are also used to compare the countries.
Money cannot buy all the goods and services needed to live well. Ex. (a) Money cannot buy a pollution free environment.
Money cannot protect us from infectious diseases.
The UNDP introduced Human Development Index (HDI) to compare the countries.
Some goods and services like education, security and health should be secured for the entire community.
Economic development should be sustainable.
What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion?
The World Bank uses per capita income as the criterion for classifying the countries. The countries with more than $12616 per capita income are called developed or rich countries. The countries with less than $ 1035 as per capita income are called less developed or poor countries. The countries where per capita
income is more than $ 1035 and less than $12606 are called medium developed countries.
Why do you think average income is an important criterion for development? Explain.
Income or money is highly important for comfortable living. Money can get us food, shelter, clothing and other material goods. However, total income cannot be used to compare countries because different countries have different population. So, average income or per capita income is considered as an important indicator of development.
What is Human Development Index? (HDI) What are its main components?
Human Development Index is the cumulative measurement of longevity, knowledge and decent standard of living.
Longevity: - It is measured in terms of life expectancy at birth.
Knowledge: - Knowledge is measured in terms of literacy rate and net attendance ratio at three levels of schools.
Decent standard of living: - It is measured in terms of per capita income.
What is sustainable economic development? Why is it very important?
OR
Why is the issue of sustainability important for development?
The economic development which does not damage environment and at the same time take care of the needs of the future generations is called sustainable development.
Over exploitations of resources may harm the future generations. Many of the resource will get exhausted.
Environmental degradation is a threat to the survival of human on the Earth’s surface.
7.. In what respects is the criterion used by UNDP for measuring development different from the one used by the World Bank?
The World Bank uses per capita income as the criterion for measuring development. The UNDP uses Human Development Index (HDI) as the criterion for measuring development. HDI is the cumulative measurement of longevity, Knowledge and decent standard of living. Income alone doesn’t provide a comfortable living to the people. Health and education are also important. So, UNDP criterion is more accurate.
Why do we use averages? Are there any limitations to their use? Illustrate with your own examples.
Aggregates such as total income, total number of literates, total health facilities and total energy consumption cannot be used to compare the economic development of different countries because different countries have different population. Aggregates will not tell us the actual living condition of an average person. So, averages are used to measure development.
Yes, there are limitations to the use of averages. Averages do not tell us how income and other facilities are distributed among people. For example, country A is a capitalist country with high per capita income, high per capita energy consumption etc….. But as economic inequality exists, only few people live comfortably. Country B is a socialist country with low per capita income and low per capita energy consumption. But as income and other facilities are equally divided, all the people lead a comfortable living.
Give some examples where factors other than income are important aspects of our life.
A rich man without good health cannot lead a happy life.
Without security and peace, good living is not possible.
Friendship gives happiness to a person. It cannot be bought by using money.
An illiterate cannot enjoy his rights and freedoms even if he is rich.
Quality of life also depends on non material things. Explain. Refer answer to Q. No. 2
Give three examples where average is used for comparing situations.
A school compares the average marks scored by students in Board Examinations for the last few years to find out the improvement of students in the school.
Population problem of two different countries can be understood by comparing the average density of population.
Average income of two families can be compared to find out their economic condition.
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?
Income is essential for a comfortable living. So, Per capita income is an important indicator of development. However, it alone cannot be used to measure development
because money alone does not provide welfare. Along with money, education, health, public facilities etc are also needed. So we have to use a number of indicators such as per capita income, longevity, literacy rate etc.. to compare states.
Find out present sources of energy used by people in India. What could be possibilities fifty years from now?
Coal, mineral oil and natural gas are the main sources energy used by the Indian people today. The non- renewable resources will get exhausted within a period of fifty years. We will face an acute energy crisis. Indians will have to develop renewable sources of energy, such as solar energy, wind energy, bio gas, etc to vercome energy crisis.
List a few examples of environmental degradation that you may have observed around you.
Factories give out harmful smoke and pollute the air.
The liquid waste from the factories degrades land and water.
Trees are cut down on a large scale. This destroys the natural ecosystem.
Plastic and other waste from houses is dumped on land.
Motor vehicle gives out smoke which contains harmful substances.
Usage of chemical fertilizers and pesticides in the agricultural fields also degrade the environment.
“The earth has enough resources to meet the needs of all, but not enough to satisfy the greed of even one person”. How is this statement relevant to the discussion of development?
Nature has provided enough resources needed for the entire mankind. If man lives in accordance with natural laws, all the organisms including man can survive and grow on the earth’s surface. So, we say that nature has enough resources to meet the needs of all. Profit seeking men have been over exploiting and degrading natural resources. Their activities have polluted the environment and destroyed a major part of flora and fauna. If this is allowed to continue the earth will become a barren planet with no life on it. So, we say that the earth does not have resources to satisfy man’s greed.
The following table shows the proportion of undernourished adults in India. It is based on a survey of various states for the year 2001. Look at the table and answer the following question.
Compare the nutritional level of people in Kerala and Madhya Pradesh.
The nutritional level of people in Kerala is higher than that of Madhya Pradesh.
In Kerala only 22% of males and 19% of females are undernourished. Where as in
M.P. 43% of males and 42% of females are undernourished.
Can you guess why around 40% of the people are undernourished even though it is argued that there is enough food in our country? Describe in your own words.
Poverty, unemployment and economic inequality do not allow many people to buy required food materials from market. So they suffer from malnutrition.
Why are public facilities necessary for the development of a country?
OR
What are the major advantages of Public Facilities?
Public facilities refer to those facilities which cannot be purchased at individual level. They are provided by the Government. These facilities are necessary to improve the standard of living of the people.
We need a pollution free environment to lead a comfortable and healthy life.
We need to get protection from infectious diseases.
Good infrastructural facilities are needed for industrial and agricultural development.
Law and order has to be maintained to provide safety and security to the people.
Safe drinking water and sanitation facilities are also needed.
Explain the term GDP? Why are only final goods and services counted in GDP?
GDP (Gross Domestic Product) is the sum of values of all final goods and services produced in a country in a year. The values of final goods and services alone are counted in GDP to avoid double counting. Intermediary goods’ values are included in the final goods’ value. So, if we add intermediary goods’ values, it will become double counting, for example, the value of tyre is included in the value of car. So, we need to count only the value of car.
Explain three attributes for comparing notions of development between different countries.
National income: - National income is the sum of values of all the final goods and services produced in a country in a year along with the income from abroad.
Per-capita income:- It is the average income of a person. It is calculated by dividing national income with population.
Life expectancy:- It is the average life span of an individual.
Infant mortality rate:- It refers to the number of child deaths before attaining the age of one for every thousand live births.
Literacy rate:- It measures the proportion of literate population in the 7 and above age group.
HDI:- Human Development Index is the cumulative measurement of longevity, knowledge and decent standard of living.
What is development? What are the two aspects of development?
OR
What are the main characteristics of development?
Economic Development is defined as the continuous and sustained improvement in the general welfare of the people.
Different people can have different development goals.
What may be development for one may not be development for the other. It may even be destructive for the other.
(iv) Along with money, people also need many other things such as peace, security, equal treatment, friendship, respect from others etc. So, people have a mix of development goals.
Why countries of the Middle East not called developed in spite of high per capita income?
Countries of the Middle East are rich. They are not considered developed because:
Educationally they are backward. There are several uneducated people there.
Socially they are backward. Women are discriminated against.
Religious freedom is not guaranteed. Non Muslims are not allowed to practice their religion.
Scientific and technological development has not taken place.
Industrial development has not taken place.
Which department carries out the task of measuring GDP in India?
The Ministry of Statistics and Programme Implementation calculates GDP in India.
Agriculture has been the backbone of the Indian economy. The declining trend of Agriculture in GDP is a matter of serious concern. Explain.
India is an agricultural country. Major part of the Indian population depends on agriculture for their livelihood. Most of the Indian industries are agro based industries. Agriculture is the largest contributor to our export earnings. It is the largest provider of employment opportunities. Now, the share of agriculture to GDP is declining. It is a matter of concern because it will affect the living condition of majority of Indians.
Why is infant mortality rate very low in Kerala?
Kerala has excellent health facilities. Even villagers have access to very good hospital facilities.
The women in Kerala are mostly educated. They know how to take care of the infants.
Nutritional level of the diet of Keralites is high.
Compare Indian and Srilanka on the basis of any three indicators of Human Development Index.
Life expectancy at birth in Srilanka is 74.3 years. In India it is only 66.4 years.
Per capita income in Srilanka is $9250. India’s per capita income is just $ 5150.
Srilanka’s literacy rate is more than 91.2%. India’s literacy rate is nearly 62.8%. So, Srilanka has higher HDI than India.
Why Kerala has a better human development ranking than Maharashtra in spite of lower per capita income.
Kerala ranks higher compared to Maharashtra . Kerala has very good health and educational facilities.
Infant mortality rate is very low in Kerala.
Kerala has higher literacy rate.
Net Attendance Ratio is very high in Kerala.
Money alone cannot give us good living conditions. Better health and educational facilities indicate development.
Highlight any three differences between intermediate goods and final goods.
Intermediate Goods
These goods are used for further production.
They are not counted in GDP to avoid double counting.
Wheat used for bread making is an intermediate good.
Final Goods
They are final goods meant for consumption.
They are included in the counting of GDP.
Bread is a final good.
Suggest two measures to ensure Sustainable Development.
Environmental pollution should be reduced. The use of plastic should be reduced.
Resources should be used in planned way. Wastage should be avoided. (iii)Non Conventional sources of energy should be developed.
Why do different persons have different notions of development? Which of the following explanation is more important and why?
Because people are different.
Because of life situations of persons are different.
The second explanation is more important for the different notions of development for different people. A persons development goals depend on his life situations. For example, if a person is living in a remote village, then construction of an all weather road would be his development goal. On the other hand, a person who lives in a crowded city , construction of metro rail which would provide faster journey would be his development goal.
Why is per capita income of different countries calculated in dollars and not in their own currencies by the World Bank?
Per capita income of different countries is calculated in dollars so that it can be compared. Comparison is not possible if per capita income is calculated in the currencies of each country.
Study the table given below and answer the following questions.
Calculate the difference in the infant mortality rate of Haryana and Kerala.
Calculate the difference in literacy rate of Kerala and Bihar
Which state has the lowest HDI and why ?
(a) 36 – 12 = 24 (b) 94 – 62 = 32 (c) Because the Infant Mortality Rate of Bihar is the highest ie 42 and its literacy rate is low ie 62, Bihar has the lowest HDI.
. “Development for one may be the destruction for the other”. Do you agree with the statement? Justify your answer.
OR
Conflicting goals can also be developmental goals‟. Explain the statement with
examples.
What is good for one person may not be good for another. It may even be harmful to him.
Narmada valley Project is beneficial for farmers because they will get water for irrigation. It is harmful for Adivasis because their villages will go under water.
Higher wages is good for agricultural workers. It is harmful for the land owners.
Reduction in working hours is good for industrial workers. It is harmful for the factory owner because it affects his profit.
Mention any three developmental goals for an Adivasi from Narmada valley.
Narmada Valley Project should be given up and Adivasi villages should be protected.
They should be allowed to live in their forest villages.
They should be allowed to collect forest products and practice shifting cultivation.
Outsiders should not disturb their culture, traditions and practices.
Describe any five conditions or aspects that you would consider before accepting a job?
Salary: Money or income is important for us to get material things needed for good life.
Job Security: The job should be regular and secured. This will ensure regular income.
Other facilities: Housing facility, medical facility, and facility for children’s education are also important.
Conditions of work: People generally wish to work in safe and secured working places.
Future prospects: Opportunities for promotion and growth are also important.
“For development, people look at a mix of goals‟. Support the statement with
three suitable examples.
For development people look for a mix of goals. Income or money is one of the main goals of all most everyone. Along with money people need many non material things also.
People look for a clean pollution free environment .
They want good health to lead a happy life.
We need respect and recognition in the society.
Love care and affection are also needed for good living.
Peaceful environment is needed. People do not like to live in troubled areas.
“There are several things needed by the society as a whole.” In the light of this statement, explain as to who can provide them at a reasonable cost the private or the public sector and why?
Public facilities refer to those facilities which cannot be purchased at individual level. They are provided by the Government. These facilities are necessary to improve the standard of living of the people.
We need a pollution free environment to lead a comfortable and healthy life.
We need to get protection from infectious diseases.
Good infrastructural facilities are needed for industrial and agricultural development.
Law and order has to be maintained to provide safety and security to the people.
Safe drinking water and sanitation facilities are also needed.
Public sector can provide these facilities. These facilities should be provided at cheap rates. Only public sector will provide goods and services at cheap rates because, it does not aim at profit. Instead it aims at the welfare of the people.
Differentiate between Human Development Report and World Development Report.
Human Development Report was published by the UNDP. World Development Report was published by the World Bank.
Human Development Report uses Human Development Index to rank countries. World Development Report uses Per capita Income to compare counties.
Human Development Report ranks countries. World Development Report classifies counties in to three groups – High Income, Low Income and Medium Income countries.
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