Dr.

Vikhe Patil Foundation’s

Vikhe Patil Memorial School

Lohegaon, Pune-47
Economics – Lesson 1 Std. X
Development
Questions and Answers
Textual Questions:
4. What is the main criterion used by the World Bank in classifying different
countries? What are the limitations of this criterion, if any?
Ans. The World Bank considers only per-capita income as the indicator of the development. It
says that the countries with the per-capita income of US $49,300 per annum and above in
2019 are called the rich countries and those with the per-capita income of US $2500 or less are
called low-income countries.

Limitations of this criterion:

i) It does not tell us about how this average income is distributed among the people in the
individual countries.

ii) Two countries with the same per-capita income might be very different with regard to
income distribution. One might have equitable distribution while the other might have
great disparities between the rich and the poor.

iii) It does not tell us anything about the availability of various services and facilities that
influence the quality of life. Even countries with high per capita income are not able to
provide its people the quality of life they deserve. They lack good health facilities,
education, sanitation etc.

5. In what respects is the criterion used by the UNDP for measuring development
different from the one used the World Bank?
Ans. The criterion used by UNDP for measuring development is different from the one used by
the World Bank in the sense that:
i) it uses a combination of factors such as health, education and income as the indicators of
development. It does not rely solely on the per capita income, as is the case with the
World Bank. According to HDR, health and education are the indictors of the
development besides food, clothes and shelter. Thus, HDR compares countries on the
basis of educational levels of the people, their health status and per capita income .

ii) The UNDP, on the basis of comparison ranks the countries as 1 st, 2nd, 3rd and so on,
whereas the World Bank divides the countries into 3 groups like rich or developed
countries, middle – income or developing countries and poor or underdeveloped or low –
income countries.

iii) The UNDP has a broader concept of development but the World Bank has a narrow
concept of development.
6. Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.
Ans. Since countries have different population, comparing total income does not tell us what an
average person is likely to earn. Hence, we compare the average income which is total income
of the country divided by its total population. We use averages because they are useful for
comparing differing quantities of the same category. Example, to compute the per capita
income of a country, average has to be used because there are differences in the incomes of
different people.
Limitations of Average: Although average is useful for comparison, they hide disparities.
Example, there may be two countries, A and B, where the monthly incomes may be the same.
In country A, most of the people have higher incomes, but in country B, a few are extremely
rich with high incomes while most of the people are extremely poor with very less income. So
everybody would like to live in country A because it has more equable distribution of income
while in country B there is much difference between the income of the rich and poor. Hence,
while the average income is useful for the comparison, it does not tell us how the income is
distributed among the people.

7. Kerala, with lower per capita income, has a better human development ranking
than Haryana. Hence, per capita income is not useful criterion at all and should not
be used to compare states. Do you agree? Discuss.
Ans. Yes, we agree to the statement partly. This is on account of the following reasons:
a) Human development index indicates some of the qualitative aspects of life such as better
health, better education etc. Per capita income of Kerala is lower but literacy rate is high.
Infant mortality rate is low and the net attendance ratio for education is high compared to
Haryana. This shows that on an overall basis, Kerala has high development index despite low
PCI. It has adequate provision of basic health care and education facilities.
b) However, it would be wrong to say that per capita income is not a useful criterion at all. If
we want to compare in terms of production and income generated, then it is an important
criterion. It is an important component of human development. No country can ignore this.
Increasing national income and the per capita income are the two main goals of all the
developing as well as developed countries. High PCI shows better standard of living. So we
cannot ignore it.

8. Find out the present sources of energy that are used by the people in India. What could be
the other possibilities fifty years from now? (Not to be written in note book. Learn only)

Ans. The present sources of energy that are used by the people of India are electricity, coal,
crude oil, cow dung and solar energy. Other possibilities in fifty years from now could be
ethanol, bio-diesel, nuclear energy, geo-thermal energy and better use of wind energy.

9. Why is the issue of sustainability important for development?

Ans. Sustainability of development means that development which is not only for the present
times but is also for the future generations. Sustainability is the capacity to use resources
judiciously and maintain ecological balance. Every generation wants to get the maximum
benefits from the available resources but such thing would be quite disastrous because the
available resources shall be exhausted within a short time and the future generations will be
deprived of these resources. Thus, the issue of sustainability is important for the following
reasons: 1) It cares for the needs of future. 2) It promoted an efficient use of natural
resources. 3) It lays emphasis on quality life. 4) it provides long term solution. 5) If the natural
resources deplete the development will also become stagnant.

10. “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? Discuss.
Ans. This means that there are enough resources to meet the needs of all if they are used
judiciously and not over exploited by a few, depriving the others who need them. Resource that
gets replenished by nature like ground water, when overused in some regions leads to lowering
of the water table. Coal which is used to generate electricity and leads to development, when
overused causes environmental pollution. We can achieve the sustainable development by
utilising the resources in a rational manner by keeping in mind the requirements of the present
and the future.
OR
The statement, “The Earth has enough resources to meet the needs of all but not enough to
satisfy the greed of even one person” is completely relevant in terms of the development of a
country because both resources and development go hand in hand. For the sustainability of
development, the maintenance of resources is very crucial. All the natural resources are non-
renewable and will exhaust if not used cautiously. Therefore, it is the responsibility of the
people to use them only to meet their needs and not to satisfy their greed. If natural resources
are not used wisely now, the future generations may not be able to use them to meet their
needs that will ultimately result in the downfall of the development of a country.

11. List a few examples of environmental degradation that you may have observed around you.
(Not to be written in note book. Learn only)
Ans. The examples of the environmental degradation around us are deforestation, depleting
levels of ground water, soil erosion, water pollution, air and noise pollution, ozone depletion,
global warming and melting of glaciers, burning of fossil fuels etc.

13. The following table shows the proportion of adults (aged 15-49 years) whose BMI is below
normal (BMI). (Not to be written in note book. Learn only)

Q(ii) Can you guess why around one-fifth of people in the country are
undernourished even though it is argued that there is enough food in the country?
Describe in your own words.
Ans. (ii) Despite the presence of adequate food in the country, around 40% of Indians are
undernourished because of the erratic and unsystematic distribution of food. Some states in
the country ensure smooth running of the ration shops and other form of PDS. It benefits the
weaker sections of the society. It helps the population to maintain the nutritional status of the
people by making the food available to them. On account of excess exports and inconsistent
food supply to the masses also, 40% of our population is undernourished.
Q(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
Ans. In Kerala, 22 percent males and 19 percent females are undernourished whereas, in
Madhya Pradesh 43 percent males and 42 percent females are undernourished.

Extra Questions:
Answer the following:

1. What is the most common developmental goal of landless rural labourers?

Ans. More days of work and better wages.

2. Name the organisation that publishes World Development Report.

Ans. World Bank

3. As per world Development Report, 2006 which countries are classified as rich countries and
which are considered as poor?
Ans. As per World Development Report, 2006, the countries with per capita income of
Rs. 4, 53,000 per annum and above are considered to be rich countries and the countries
with per capita income of Rs. 37000or less are called poor countries.

4. Which method is used to find out if an adult is undernourished?

Ans. Body Mass Index (BMI)

5. What does HDI stands for? Which organisation publishes Human Development Report?
Ans. HDI stands for Human Development Index. UNDP (United Nations Development
Programme) publishes Human Development Report.

6. What is meant by Human Development?

Ans. Human development is the process of enlarging people’s choices as well as raising the
level of their well being so that they can lead a meaningful life.

7. What are the essential components of HDI?

Ans. Health levels, educational levels and per capita income.

8. Why do different people have different development goals?

Ans. Different people have different developmental goals because people have diverse
wishes, likes and dislikes and aspirations.

*9. ‘Money cannot buy all the goods and services that one needs to live well’. Justify
the statement.
Ans. Income by itself is not a completely adequate indicator of material goods and services
that the people are able to use. Money cannot buy for us a pollution free environment or
ensure us that we get unadulterated goods and medicines. Money may also not be able to
protect us from infectious diseases, unless the whole community takes the preventive steps.
The average person in Haryana/Maharashtra may earn more in terms of money from the
average person in Kerala but lags behind, in many crucial areas like literacy rate, infant
mortality rate, net attendance ratio etc.
10. What are the various social indicators of development?
Ans. All though the level of income is the important indicator of development, it is an
inadequate measure of the level of development. The social indicators are:
Health and Education: People become resource when investments are made in their health
and education.
Sex ratio: if the sex ratio is in favour of males, it implies sex discrimination which goes
against the development.

11. How are economic and human development related to each other?
Ans. Human development refers to the process of improvements in human beings. People
become resources when investments in them are made in form of health and education. Life
expectancy at birth, adult literacy rate, per capita GDP are important indicators of human
development. Economical development will be sustainable if resources are managed in such
a way that future generations do not suffer and have at least the facilities that the present
generation is enjoying.

12. Why is sustainability important for development? Give two suggestions to achieve
sustainable development.
Ans. Sustainability is very important for development because if all development activities
are carried out without paying attention to the environment and other natural forces then
development itself will become a danger for the mankind. Eg. If all the forests are cut
recklessly global warming will destroy everything on the earth. In that situation what is the
use of development.
To achieve sustainability:
We must be less dependent on non renewable resources.
We must live according to natural conditions and use natural products as far as possible.
13. What is development? What are the two aspects of development?

Ans. Development is the process of positive growth in economy and society. This is inclusive
of growth in health aspects and education, training and skill formation. The two broad
aspects are:
a) Economic development or rise in income, savings, capital formation, acquisition of wealth
etc.
b) Social development which includes health, education, public infrastructure and facilities
etc.

14. Suppose records show that the average income in a country has been increasing over a
period of time. Can we conclude that all sections of the economy have become better?
Illustrate your answer with an example.
Ans. No, even if the average income in a country is been increasing, we cannot conclude
that all the section of the economy have become better. This is because the distribution of
income may be uneven due to which there may be huge gap between rich and poor section
of the society. For example, there are two countries A and B and we assume that they have
only two citizens each. In country A, one citizen has Rs. 100 income while other citizen has
Rs. 1000 income. In country B, one citizen has Rs. 400 income while other citizen has Rs.
 700 income. Both country A and B has average income of Rs. 550 but country B is good as
the distribution of income is not unequal then.

15. In what respects is the criterion used by the UNDP for measuring development different
from the one used by the World Bank?
Ans. The criterion used by the UNDP for measuring development is different from the one
used by the World Bank in the following ways:
UNDP uses the health and education level of the people of the country apart from per capita
income. On the other hand, World Bank uses only per capita income as the criterion of
measurement.
UNDP seeks to establish the fact that health and educational level of the people plays an
important role in the development of the country apart from per capita income.
In respect of overall human development, some of the countries which may have good per
capita income may not fall in developed nations due to bad state of health and educational
avenues in the economy.

16. Which values are associated with sustainable development?

Ans. The values associated with sustainable development are:
a. Using natural resources properly and scientifically.
b. Reducing pollution or environmental degradation.
c. Protecting flora and fauna from human exploitation.
d. Using even inexhaustible resources in a cautious manner.
e. Using land for cultivation wisely so that its fertility can be maintained.
*17. ‘Development for one maybe the destruction for other.’ Do you agree? Justify
the statement.
Ans. I certainly agree with the statement that development for one may be the destruction for
other. People have different developmental goals. They seek what is most important for them
and fulfil their aspirations and desires. Eg. The establishment of a dam leads to infrastructural
development, generation of electricity, etc., but at the same time, it may lead to the large-
scale displacement of people, loss of livelihood, shelter etc., of the people living near the
proposed dam site. Hence, construction of dam may be development for some, but may be
destruction for others.
18. What is Human Development Index (HDI)? Name its variables.
Ans. The Human Development Index (HDI) is a tool developed by the United Nations to
measure a country’s overall achievement in its social and economic dimensions. The HDI ranks
countries on the basis of per capita income, health of people, their level of education and their
standard of living. The three variables of Human Development Index are:
a) long and healthy life b) knowledge c) a decent standard of living.
*19. Distinguish between human development and economic development.
Ans.
Human Development Economic Development
1. It refers to human-centred approach 1. It refers to a continuous and sustained
towards development. It focuses on growth in an
improvement in the overall well-being and
quality of life of individuals. economy along with a general
improvement in the overall standard of
living in the nation.
2. It is indicated by HDI. 2. It can be indicated by national income
and per capita income.
3. It is a wider term and includes economic 3. It is narrow term.
development also.

VALUE BASED QUESTIONS:

20. Money, or material things that one can buy with it, is one factor on which our life depends.
But the quality of our life also depends on non-materialistic things. What non-material things
do we need in life? What values do such things reflect?
Ans. Money can buy material things only. But apart from these, we require non-material things
like love, affection, care, freedom and concern as well. These form the base of our life as well.
Values reflected by these things are respect, cooperation, confidence, strong willpower, safety
and security.
*21. It is true that if women are engaged in paid work, their dignity in household and
society increases. What conditions can encourage women to get engaged in paid
works? What values will be generated through such effort?
Ans. The following conditions will encourage women in getting engaged in paid works:
 Safe and secure environment at home and outside.
 Equal opportunities with equal wages.
 Freedom to take decisions.
 Participation in decision making.
Values that will be generated through such effort are respect, cooperation, understanding,
decision making, positive attitude and sharing responsibilities.

NOTE: Do all the Textual questions (except 8, 10, 11, 12, 13)

Self-study Questions: (to be written in the note book)

1. Mention the limitations of the per capita income as an indicator of development.
2. State the development goals of the people other than income.
3. Define sustainable development.
4. Differentiate between developed and less developed or developing countries.
5. What is HDI? Name its variables.
6. Define the following terms:
a) Net attendance ratio
b) Infant mortality rate
c) Literacy rate
d) Body Mass Index (BMI)
e) Life expectancy at Birth
f) Per Capita Income (PCI)
7. Source Based Question:
Read the table and the extract carefully and answer the questions that are given in the
extract.