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    Economics CH 1 Notes

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    daksh
    The document discusses key concepts related to economic development measurement: (1) Average income or per capita income is the total income of a country divided by its total population, and is a better measure of development than total income alone since it accounts for population size differences between countries. (2) Important indicators of economic development include literacy rates, health outcomes like infant mortality rate and life expectancy, and factors considered by the UNDP's Human Development Index, which examines education, health, and income levels. (3) While averages are useful for comparing countries overall, they can also obscure disparities, as some members of society may be rich while masses remain poor. Sustainable development aims to prevent environmental degradation through

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    Economics CH 1 Notes

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    daksh
    36 views4 pages
    The document discusses key concepts related to economic development measurement: (1) Average income or per capita income is the total income of a country divided by its total population, and is a better measure of development than total income alone since it accounts for population size differences between countries. (2) Important indicators of economic development include literacy rates, health outcomes like infant mortality rate and life expectancy, and factors considered by the UNDP's Human Development Index, which examines education, health, and income levels. (3) While averages are useful for comparing countries overall, they can also obscure disparities, as some members of society may be rich while masses remain poor. Sustainable development aims to prevent environmental degradation through

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    Economics ch 1 notes

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    The document discusses key concepts related to economic development measurement: (1) Average income or per capita income is the total income of a country divided by its total population, and is a better measure of development than total income alone since it accounts for population size differences between countries. (2) Important indicators of economic development include literacy rates, health outcomes like infant mortality rate and life expectancy, and factors considered by the UNDP's Human Development Index, which examines education, health, and income levels. (3) While averages are useful for comparing countries overall, they can also obscure disparities, as some members of society may be rich while masses remain poor. Sustainable development aims to prevent environmental degradation through

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    36 views4 pages

    Economics CH 1 Notes

    Uploaded by

    daksh
    The document discusses key concepts related to economic development measurement: (1) Average income or per capita income is the total income of a country divided by its total population, and is a better measure of development than total income alone since it accounts for population size differences between countries. (2) Important indicators of economic development include literacy rates, health outcomes like infant mortality rate and life expectancy, and factors considered by the UNDP's Human Development Index, which examines education, health, and income levels. (3) While averages are useful for comparing countries overall, they can also obscure disparities, as some members of society may be rich while masses remain poor. Sustainable development aims to prevent environmental degradation through

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    of 4

    Economics

    Ch. – 1 Development
    1. What is meant by the Average Income of a country?
    Ans. Average Income or Per Capita Income is the total income of the country divided by its
    total Population i.e., it is income per head of the population per year.
    2. Why is total income not a useful measure of development?
    Ans. Total income is not a useful measure of development because countries have different
    Populations comparing total income will not tell us what an average person is likely to earn.

    3. Explain the determinants of economic development.


    Ans. (1) Per Capita Income: This means average income generated by each person in a
    given group of people. That is, Per Capita Income or Average Income is the total income of
    the wintry (or state) divided by its total population.
    (2) Literacy Rate: It is also the basis of comparison of economic development of different
    countries or states. Literacy Rate measures the proportion of the literate population in the 7
    and above age group.
    (3) Net Attendance Ratio: It is the total number of children of age group 6-10 attending
    school as a percentage of the total number of children in the same age group.
    (4) Infant Mortality Rate (IMR): This health indicator indicates the number of children that
    die before the age of one year as a proportion of 1,000 live children born in that particular
    year. Lower the amount of IMR, higher is the rate of people being healthy.
    (5) Life Expectancy at birth: It denotes the average expected length of life of a person at
    the time of birth. Higher the life expectancy at birth, higher is considered the development of
    a nation.

    4. Write the full form of IMR. Explain why this index is low in Kerala.
    Ans. (1) Infant Mortality Rate is the full form of IMR.
    (2) IMR indicates the number of children that die before the age of one year as a proportion
    of 1,000 live children born in that particular year.
    (3) This index is low in Kerala because of the adequate provision of basic health and
    educational facilities.
    5. What do you understand by the Human Development Index? Name the world
    organization that has initiated it for the measurement of
    development.
    Ans. (i) This is the report published by UNDP for comparing centuries based on the
    education levels of the people, their health status and Per Capita Income.
    (2) UNDP is responsible for measuring HDR.
    (3) The three major indicators of HDR are as under:
    (i) Educational levels, (ii) Health status, (iii) Per Capita Income.

    6. Although averages are useful for comparing countries, they also hide disparities.
    Explain the meaning of this
    statement.
    Ans. (1) Average Income or Per Capita Income is the total income of the country divided by
    its total population. It is an important indicator of economic development of the country. It is
    an income per head of the population per year.
    (2) (i) Per Capita Income is an important indicator of development.
    (ii) It is used to compare similarities and differences between the various parameters of
    development of different countries.
    (iii) Comparing countries by national income are not useful to measure as countries have
    different population. Thus, Per Capita Income is an important measure.
    (3) Per Capita Income has its limitations also.
    (i) It does not tell us how the income is distributed among the people. Some may be very rich
    but the masses may be poor. That is, it hides disparities.
    (ii) Per Capita Income cannot be regarded as the sole indicator of development. Other areas
    are also important like Literacy Rate, Life Expectancy, Infant Mortality Rate, etc.
    7. What is the main criterion used by the World Bank in classifying different
    countries?

    Ans. (1) (i) The main criterion used by the World Bank in classifying different countries is
    Per Capita Income.
    (ii) According to the World Development Report, the countries with Per Capita Income of US
    $ 12,736 per annum and above in 2013, are called rich countries.
    (iii) The countries with Per Capita Income of US $ 1045 or less are called low-income
    countries.
    (2) (i) Per Capita Income or Average Income is an important indicator of economic
    development of the country.
    (ii) Comparing countries by national income are not useful to measure as countries have
    different population. Thus, Average Income is an important measure.
    (3) (i) While Per Capita Income is useful for comparison, it does not tell us how this income
    is distributed among people.
    (ii) Some may be very rich but the masses may be poor. In this way, it hides disparities.
    8. Why has Kerala a low ‘Infant Mortality Rate’? Explain any three reasons.
    Ans. Infant Mortality Rate or IMR indicates the number of children that die before the age of
    one year as a proportion of 1,000 live children born in that particular year. In Kerala, out of
    1,000 children born alive, 12 died before completing one year of age but in Maharashtra, the
    proportion of children dying within one year of birth is 25 which is more than double. Kerala
    has a low Infant Mortality Rate for the following reasons :
    (1) Kerala has high Literacy Rate that is 94%.
    (2) The state has better health facilities. It is famous for medical tourism also.
    (3) Kerala has also higher Per Capita Income. It was Z 88,500 in 2012-13.
    In this way, Kerala has adequate provision of basic health and educational facilities.

    9. What is development? Explain the indicators used by UNDP for measuring


    development.
    Ans. (1) Development: Development refers to progress or improvement in lifestyle. It does
    not mean only income but it includes equality, security. education, health, environmental
    sustainability, etc.
    (2) Over the past decade or so, health and education indicators have come to be widely used
    along with income as a measure of development. Most importantly, the Human Development
    Report published by UNDP compares countries based on the educational levels of the people,
    their health status and Per Capita Income. In this way, besides money, our life depends on
    health and education.
    (i) Per Capita Income: Per Capita Income is the total income of the country divided by its
    total population. Income is considered to be one of the most important indicators of
    development. This is based on the understanding that more income means more of all things
    that human beings need. Whatever people like and should have, they will be able to get with
    greater income.
    (ii) Life Expectancy at Birth: This denotes the average expected length of life of a person at
    the time of birth. Life Expectancy at birth has a direct and positive relationship with the
    health status of a country or region.
    (iii) Literacy Rate: This measures the proportion of the literate population in the 7 and above
    age group. Higher Literacy Rate of a country improves its Human Development Index.

    10. Why is sustainable development essential? How does it help to prevent


    environmental degradation?
    Ans. (1) (i) Sustainable development is essential because rapid economic growth and
    industrialization have led to reckless exploitation of natural resources.
    (ii) There is fear of complete exhaustion of these natural resources.
    (iii) In the process of economic growth, the damage is being caused to environment and
    ecology which ultimately will hurt human beings.
    (2) It helps to prevent environmental degradation in the following ways :
    (i) Sustainability of development means carrying out development works without causing
    damage to the environment and also without making a compromise on the ability of future
    generation to use the resources which are being used by the present generation.
    (ii) To make development sustainable, environmental issues have to be merged in
    development. The technologies used have to be made eco-friendly.
    (iii) Sustainable development is a matter of discussion among different countries of the
    world. Global warming, acid rain, etc. are not to be controlled by one nation. It is a global
    matter of thinking and finding solutions.
    (iv) In order to make development sustainable, people do not overuse and degrade the quality
    of water so that water is exhausted or if it remains, it is contaminated to such an extent that it
    becomes unusable for future generations.
    11.

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