Economics Questions and Answers of Chapter 1: Development

ECONOMICS QUESTIONS AND ANSWERS OF CHAPTER 1
DEVELOPMENT
1. What is development? What are the three characteristics of development?
Ans: Development is such a situation that can fulfill the aspirations or desires
of people. It is the progress or improvement in the lifestyle of the people. The
three characteristics of development goals are:
(i) Different persons can have different developmental goals.

(ii) What may be development for one, may not be development for other.
It may be destructive.
(iii) Income is the most important component of development, but along
with income, people also seek equal treatment, good health, peace and
literacy.
2. “People have conflicting development goals”. Support the statement with
suitable examples.
Ans: People have conflicting development goals because life situations of

persons are different. People seek things that are most important for them i.e
the things that can fulfill their aspirations, desires or needs. Therefore
sometimes, two persons or groups of persons may seek things which are
conflicting. For example
(i) Industrialist may consider the construction of dams as development.

This is because it provides electricity that they need. In contrary, Tribals,
farmers,and other groups may resent this as the construction of dams
may lead to submergence of their land and loss of their livelihood.
(ii) Similarly, a girl expects as much freedom and opportunity as her brother
and that he also shares in the household work but her brother may not
like this.
3. What is the most common indicator of measuring economic development
of a country?
Ans : Per capita income

4. What other goal is included in the developmental goals besides having
better income?
Ans: Freedom, education, security and equal treatment.
5. What do you mean by national development?
Ans: National development refers to the ability of a nation to improve

standard of living of its citizens.
6. What is economic development?
Ans. Economic development means that the rate of production must be faster
than the rate of increase in population. In other words we can say that it
makes people better off by increasing their command over goods and services
and by increasing the choices open to them.
7. Define national income.
Ans. National income is defined as the total value of all the goods and services
produced within a country together with income coming from abroad.
8. What is per capita income?
Ans: Per capita income of a nation is national income divided by total

population. It is the average income of the people living in any country.
9. Define Gross domestic product (GDP).
Ans. It is the sum of the value of final goods and services produced in three
sectors of economy in a particular year. It does not include income from
abroad.
10.What are development goals of landless rural labourers and prosperous

farmers?
Ans:
(i) Landless rural labourers: They would like to have more days of work and
better wages; local schools to provide quality education to their
children; there should not be any social discrimination
(ii) Prosperous farmers: They should have assurance of high family income
through higher support prices for their crops through hardworking and
cheap labourers.They also want that they should be able to settle their
children abroad.
11.Why do different people have different notions of development? Explain
Ans. It is because the life situations of persons are different.
People seek things which are most important for them or that which can
fulfill their aspirations or desires.
For example: developmental goals of a boy from a rich urban family would
be to get admission in a reputed college, whereas the developmental goals
of a girl from a rich urban family would be to get as much freedom as her
brother.
12.Differentiate between economic growth and economic development.
Ans:
Economic growth Economic development

1. It refers to an increase in the 1. It refers to economic growth
value of real goods and services and progressive changes in the
in an economy. socio economic structure of an
2. It is a narrow concept. economy.
3. It includes quantitative 2. It is a wider concept which
changes. includes economic growth.
4. Its indicators are increase in 3. It includes quantitative as well
GDP, per capita income etc as qualitative changes.
4. Its indicators are improvement
in life expectancy rate, infant
mortality rate, literacy rates and
poverty rates along with GDP,
per capita income etc.

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ECONOMICS QUESTIONS AND ANSWERS OF CHAPTER 1

(i) Different persons can have different developmental goals.

Ans: People have conflicting development goals because life situations of

(i) Industrialist may consider the construction of dams as development.

Ans : Per capita income

Ans: Freedom, education, security and equal treatment.

5. What do you mean by national development?

Ans: National development refers to the ability of a nation to improve

6. What is economic development?

7. Define national income.

8. What is per capita income?

Ans: Per capita income of a nation is national income divided by total

9. Define Gross domestic product (GDP).

10.What are development goals of landless rural labourers and prosperous

Economic growth Economic development

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