CLASS    10

NCERT Solutions for Class 10 Economics Chapter 3 – Money and Credit

 Exercises Page No 52

1. In situations with high risks, credit might create further problems for the borrower. Explain.

Answer: In situations with high risks, credit might create further problems for the borrower. Credit involves a certain amount of loan that is taken by a borrower from a lender at a high-interest rate. In case there is a failure, and the borrower faces loss, then they further fall into the trap of credit. This is known as a debt trap. The borrower has to repay the credit along with interest applied by the lender, and they further fall into the trap of credit, increasing the problems for the borrower. The borrower also has to sell a part of their land to repay the loan.

2. How does money solve the problem of double coincidence of wants? Explain with an example of your own.

Answer: ‘Double coincidence of wants’ is when whatever a person desires to sell is exactly what the other wishes to buy. In a barter system, where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Money solved the problem of double coincidence of wants because, after the introduction of money, people could use money as an intermediate to buy or sell things, and no specific buyer or seller was required to exchange products. For example, a trader wishes to sell 10 sacks full of rice and expects to get it in exchange for five sacks of cereal. Finding a suitable buyer to sell the sacks of rice in exchange for cereals would be very tough. However, the money will solve this problem, and the trader can sell the sacks of rice to someone who needs it and, in return, buy cereals from the money they get from the buyer of rice.

3. How do banks mediate between those who have surplus money and those who need money?

Answer: Banks mediate between those who have surplus funds (the depositors) and those who are in need of funds (the borrowers) by lending money to people who are in need. People can open accounts in banks, and banks make use of that money to fulfil the loan requirements of the people. A higher interest rate is charged for the borrower, and that profit is given to the depositor as interest for offering deposits.

4. Look at a 10 rupee note. What is written on top? Can you explain this statement?

Answer: “Reserve Bank of India” and “Guaranteed by the Central Government” is written on the top of a 10 rupee note. Currency in India is issued by the central bank of the country; in the case of India, the Reserve Bank of India is the central bank of the country. The currency is issued on behalf of the Central Government, and these two are the only authorities which are responsible for issuing currency in India.

5. Why do we need to expand formal sources of credit in India?

Answer: Formal sources of credit are the Government authorised organisations that are eligible to lend money to people. It is important to expand formal sources of credit in India because the informal sources are not registered and lend money to people at very high-interest rates, which is unfair and must not be practised. If formal sources of credit are increased, people will be able to borrow money at lesser interest rates and will not be liable to do any extra work for the borrower. Especially in India, if formal sources of credit are increased, people will be able to take loans and use them for the development of the country.

6. What is the basic idea behind the SHGs for the poor? Explain in your own words.

Answer: The Self Help Groups (SHGs) have been set up in India with an aim to help the rural poor, especially women. A typical Self Help Group comprises 15-20 people from the same neighbourhood who save some money from their daily wages and collect them together. People can borrow money from these groups during an emergency or when they are in need. They charge a minimum rate of interest from the borrowers. Once the SHG has managed to save a defined amount of money, they are also eligible to take loans from banks. The main purpose of introducing these Self Help Groups was to increase small-scale employment opportunities for the rural people so that they could start small businesses to earn a livelihood.

7. What are the reasons why banks might not be willing to lend to certain borrowers?

Answer: The reasons why banks might not be willing to lend money to certain borrowers are given below:

1. Some people fail to provide the required set of documents to get a loan.
2. Irregular wages and no fixed job is also one reason because it increases the chances of non-repayment of loans.
3. Certain borrowers are added to the list of NPAs.
4. There is a high risk in approving loans to entrepreneurs.

8. In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

Answer: The Reserve Bank of India is the central bank of India, and all the other public sector banks work under the supervision of the Reserve Bank of India. It manages the functioning of the banks in the following ways:

1. It monitors the bank in maintaining the cash balance.
2. Loans are not just given to profit-making organisations but also to small cultivators and small-scale industries.
3. RBI maintains a periodic report of other banks regarding the amount loaned to people.
4. It also keeps a regular check on the interest rates set for loans in public sector banks.

9. Analyse the role of credit for development.

Answer: Credit is one of the major aspects of the development of a country. Affordable credit plays a very important role in the country’s development. People need loans for different reasons, and to meet this requirement, credit is very important. In India, a major part of the population is engaged in agricultural activities; credit plays a very crucial role in agricultural activities. People can borrow money and use modern farming methods to grow crops which are more reliable than the traditional methods of growing crops. Apart from this, there are small-scale industries, businesses and various other sectors where credit can help people and ultimately result in the development of the country.

10. Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.

Answer: Manav wants to set up a small business. He needs to keep the below-mentioned things in mind while deciding whether to borrow money from a bank or money lender:

1. He needs to compare the interest rate charged by both the bank and the moneylender. Whoever charges less should be his option.
2. He needs to analyse whether he has all the eligible documents required by the banks to get his loan approved.
3. How he wishes to repay the lender.

11. In India, about 80 per cent of farmers are small farmers who need credit for cultivation.

a. Why might banks be unwilling to lend to small farmers?

Answer: Banks might be unwilling to lend money to small farmers because there are high risks. If the harvest gets ruined, there is a possibility that they might not be able to receive the instalments on time. Also, proper documentation is required to get a loan from the bank, which might not be available to small-scale farmers.

b. What are the other sources from which the small farmers can borrow?

Answer: Small farmers can move to informal sources of credit if they are not borrowing money from a bank. These informal sources of credit include moneylenders, agricultural traders, etc.

c. Explain with an example of how the terms of credit can be unfavourable for the small farmer.

Answer: When a small-scale farmer borrows money from a bank, they have to repay the amount at a fixed rate of interest. For example, if a farmer borrows money from the bank and, during the harvest season, their crops are ruined, then they shall not be able to repay the amount loaned to them by the bank and will further fall into the debt trap.

d. Suggest some ways by which small farmers can get cheap credit.

Answer: Small farmers can get cheap credit from formal sources of credit like banks.

12. Fill in the blanks:

1. Majority of the credit needs of the _________________households are met from informal sources.
2. ___________________costs of borrowing increase the debt-burden.
3. __________________ issues currency notes on behalf of the Central Government.
4. Banks charge a higher interest rate on loans than what they offer on __________.
5. _______________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Answer a: Poor

Answer b: High

Answer c: Reserve Bank of India

Answer d: Deposits

Answer e: Collateral

13. Choose the most appropriate answer.

1. 1. In an SHG, most of the decisions regarding savings and loan activities are taken by
      1. Bank
      2. Members
      3. Non-government organisation

Answer: b. Members

2. 2. Formal sources of credit do not include
      1. Banks
      2. Cooperatives
      3. Employers

Answer: c. Employers

 

                                    CLASS   10 

NCERT Solutions for Class 10 Economics Chapter 4 – Globalisation And The Indian Economy

 Exercises Page No 72

1. What do you understand by globalisation? Explain in your own words.

Answer: Globalisation is defined as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). Increase in foreign trade, migration of people from one country to another, the flow of capital finance from one country to another and private and public investments from foreign countries all together contribute to globalisation.

2. What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

Answer: The main reason for putting barriers to foreign trade and foreign investment by the Indian government was to protect the interest earned by producers and small industrialists of our country from foreign competition.

But later it was accepted by the government that foreign competition would encourage Indian industrialists to improve the quality of their products and removing these barriers would increase trade and quality of products produced in the country.

3. How would flexibility in labour laws help companies?

Answer: Flexibility in labour law helps companies because it helps to attract foreign investments. Instead of hiring workers on a regular basis, companies hire workers flexibly for short periods when there is intense pressure of work. This is done to reduce the cost of labour for the company. However, still not satisfied, foreign companies are demanding more flexibility in labour laws. The competition in the market is increasing each day, and if the Government does not allow flexibility with these laws, the foreign companies will not be able to reach their desired profit levels.

4. What are the various ways in which MNCs set up, or control, production in other countries?

Answer: MNCs set up and control production by investing a huge amount of money in a country’s economy. It sets up production units close to the market so that they get cheaper labour. To increase production, MNCs collaborate with some local companies as the production rate would rapidly increase. In most of the cases, the MNCs buy local companies and expand their production. The other way in which they control production is by placing the orders for production with small and local producers. They help production using technology and heavy machinery, which makes the work more efficient and productive.

5. Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?

Answer: Developed countries want developing countries to liberalise their trade and investment because MNCs can set up industries in small and developing nations, which are less expensive and can earn them more profit. The labour cost decreases the manufacturing cost, and these decreases in cost results in an increase in profit. Also setting up factories and industries in developed countries increases competition. The developing countries should, in turn, ask for a fair removal of trade barriers in order to protect their own industries.

6. “The impact of globalisation has not been uniform.” Explain this statement.

Answer: The impact of globalisation has not been uniform because only the developed countries have gained profits due to globalisation. The developing countries are only a source of setting industries and getting cheaper labour, and the entire profits are earned by the developed countries. The small industries and companies in developing countries have constantly been facing challenges in terms of earning profits and brings their goods in the market.

7. How has liberalisation of trade and investment policies helped the globalisation process?

Answer: The liberalisation of trade and investment policies helped the globalisation process because it has helped in the removal of trade barriers. It has made foreign trade and investment easier. The choices of the buyers have also expanded, as now they get to choose products manufactured by not only domestic companies but also by the foreign companies. Competition among traders has resulted in the cheaper price of products. Liberalisation has spread globalisation as the decision making power of export and import now lies with the businessmen themselves.

8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Answer: Foreign trade has led to the integration of markets across the countries. Because of foreign trade, the producers are now able to compete and export their goods to the markets of other countries. Opportunities are provided not just for the seller but also for the buyer to get goods outside their own country. Their choices have expanded as now they get to choose products manufactured by not only domestic companies but also by the foreign companies.

The price of these goods has decreased because of the competition in the market. Producers from different countries are now able to compete not just with the competitors in their own country, but with across the world. The Indian market today is not flooded with goods made in India but goods from all across the world at an affordable price.

9. Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now? Give reasons for your answer.

Answer: Globalisation will continue in the future as well. Twenty years from now, the production of goods will be more efficient, competition in the market will increase, advancement in every field will be evident and the quality and quantity of goods produced will also increase. Small industries and entrepreneurs will increase as more opportunities will be provided to them.

10. Supposing you find two people arguing: One is saying globalisation has hurt our country’s development. The other is telling, globalisation is helping India develop. How would you respond to these arguments?

Answer: Globalisation has its pros and cons, and there are various advantages and disadvantages of the increasing globalisation in the country. The advantages of increased globalisation include improved trade opportunities and the increase in the number of employed because of small scale industries. The profit market has increased, and the increase in imports and exports has increased the economy of the nation. People can buy goods that are made across the world at cheaper prices.

The disadvantages of globalisation include that globalisation has increased the income of the rich and has decreased the income of the poor because the small scale local industrialists are unable to earn much profit. Thereby increasing income inequality.

11. Fill in the blanks.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of ______________. Markets in India are selling goods produced in many other countries. This means there is increasing ______________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because _____________ ___________________________________________ . While consumers have more choices in the market, the effect of rising _______________ and ______________has meant greater _________________among the producers.

Answer:

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing trade with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India Because of the cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.

12. Match the following.

(i) MNCs buy at cheap rates from small	(a) Automobiles producers
(ii) Quotas and taxes on imports are used to regulate trade items	(b) Garments, footwear, sports
(iii) Indian companies who have invested abroad	(c) Call centres
(iv) IT has helped in spreading of production of services	(d) Tata Motors, Infosys, Ranbaxy
(v) Several MNCs have invested in setting up factories in India for production	(e) Trade barriers

Answer:

(i) MNCs buy at cheap rates from small producers	(b) Garments, footwear, sports items
(ii) Quotas and taxes on imports are used to regulate trade	(e) Trade barriers
(iii) Indian companies who have invested abroad	(d) Tata Motors, Infosys, Ranbaxy
(iv) IT has helped in spreading of production of services	(c) Call centres
(v) Several MNCs have invested in setting up factories in India for production	(a) Automobiles producers

13. Choose the most appropriate option.

1. The past two decades of globalisation has seen rapid movements in

1. goods, services and people between countries.
2. goods, services and investments between countries.
3. goods, investments and people between countries.

Answer: c. goods, services and investments between countries

2. The most common route for investments by MNCs in countries around the world is to

1. set up new factories.
2. buy existing local companies.
3. form partnerships with local companies.

Answer: c. buy existing local companies

3. Globalisation has led to improvement in living conditions

1. of all the people
2. of people in developed countries
3. of workers in the developing countries
4. none of the above

Answer: d. none of the above

 

NCERT Solutions for Class 10 Economics Chapter 2 – Sectors of the Indian Economy

 Exercises Page No 35
1. Fill in the blanks using the correct option given in the bracket:

1. Employment in the service sector _________ increased to the same extent as production. (has / has not)
2. Workers in the _________ sector do not produce goods. (tertiary / agricultural)
3. Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
4. A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
5. Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]
6. The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

Answer a: has not
Answer b: tertiary
Answer c: organised
Answer d: large
Answer e: natural and manufactured
Answer f: interdependent
2. Choose the most appropriate answer.
a. The sectors are classified into public and private sector on the basis of:

1. employment conditions
2. the nature of economic activity
3. ownership of enterprises
4. number of workers employed in the enterprise

Answer: 3. ownership of enterprises
b. Production of a commodity, mostly through the natural process, is an activity in _________ sector.

1. primary
2. secondary
3. tertiary
4. information technology

Answer: 1. primary
c. GDP is the total value of _________ produced during a particular year.

1. all goods and services
2. all final goods and services
3. all intermediate goods and services
4. all intermediate and final goods and services

Answer: 2. all final goods and services
d. In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.

1. 20 to 30
2. 30 to 40
3. 50 to 60
4. 60 to 70

Answer: 3. 50 to 60
3. Match the following:

Problems faced by farming sector	Some possible measures
1. Unirrigated land	(a) Setting up agro-based mills
2. Low prices for crops	(b) Cooperative marketing societies
3. Debt burden	(c) Procurement of food grains by government
4. No job in the off season	(d) Construction of canals by the government
5. Compelled to sell their grains to the local traders soon after harvest	(e) Banks to provide credit with low interest

Answer:

Problems faced by farming sector	Some possible measures
1. Unirrigated land	(d) Construction of canals by the government
2. Low prices for crops	(c) Procurement of food grains by government
3. Debt burden	(e) Banks to provide credit with low interest
4. No job in the off season	(a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest	(b) Cooperative marketing societies

4. Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
Answer: Tourist Guide is the odd one out because he or she is appointed by the Government Department but tailor, dhobi and potter own their private work.
(ii) Teacher, doctor, vegetable vendor, lawyer
Answer: The Vegetable vendor is the odd one out because he works in the primary sector, while jobs of teacher, lawyer and doctor come under the tertiary sector.
(iii) Postman, cobbler, soldier, police constable
Answer: Cobbler is the odd one out because he works in the private sector while the postman, soldier and police constable work for the public sector or the organised sector.
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio
Answer: Jet Airways is the odd one out because it is owned by a private company and MTNL, Indian Railways, Air India and All India Radio are owned by the Government of India
5. A research scholar looked at the working people in the city of Surat and found the following.

Place of Work	Nature of Employment	Percentage of working People
In offices and factories registered with the government	Organised	15
Own shops, office, clinics in marketplaces with formal license		15
People working on the street, construction workers, domestic workers		20
Working in small workshops usually not registered with the government

Complete the table. What is the percentage of workers in the unorganised sector in this city?
Answer:

Place of Work	Nature of Employment	Percentage of working People
In offices and factories registered with the government	Organised	15
Own shops, office, clinics in marketplaces with formal license	Organised	15
People working on the street, construction workers, domestic workers	Unorganised	20
Working in small workshops usually not registered with the government	Unorganised	50

The percentage of workers in the unorganised sector are 70% (50+20)
6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer: The classification of economic activities into primary, secondary and tertiary is useful, as it helps to classify the different occupations that are taken up by the people in the country and how much each sector contributes to the growth of the country. It is also important because it helps in asserting that which sector contributes the most in the GDP and which sector has the scope to employ more people and increase the National Income.
7. For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer: Employment and GDP are two of the most important factors in the development of a country. Employment and GDP are used to calculate the overall productivity and National income of a country. If a country has a high employment rate, its GDP, National Income and per capita income will automatically increase. Hence, these are the two things which have been given major emphasis in this chapter. Other issues which should be examined are as follows:

1. Health care facilities
2. Education
3. Poverty
4. Food Production
5. Nourishment

8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer: The activities performed by human beings for a living are classified into three sectors: primary, secondary and tertiary. When we see people around us, we can classify their employment sector in either of the three classifications. Activities like cleaning, agriculture, selling vegetables are examples of the primary sector. Manufacturing of goods is an example of the secondary sector. Teaching, mining, banking, transportation are all examples of the tertiary sector.
9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer: The are activities that help in the development of the primary and secondary sectors are called tertiary activities. These activities are different from the primary and secondary sector activities. These activities, by themselves, do not produce a good but they are an aid or support for the production process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. These transportation facilities and shopkeepers come under the tertiary sector. They do not produce goods but play a very important role in selling and bringing those goods to the market.
10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: The situation of underemployment, where people are apparently working but all of them are made to work less than their potential is called disguised unemployment. In this case, the person considers himself employed but is actually not working. In rural areas, where agriculture is the main source of income, this kind of unemployment can be seen often. If a piece of land requires only three people to work on it and instead five people are working on it, then the two extra people are said to be in a situation of disguised unemployment. In urban areas, disguised unemployment is seen when painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential.
11. Distinguish between open unemployment and disguised unemployment.
Answer: Open unemployment is when a person is willing to work, is educated but is unable to get a job and work. This kind of unemployment is visible. On the other hand, disguised unemployment is when a person is apparently working but is made to work less than his or her potential. This kind of employment is quite evident in villages where people working in farms consider themselves employed but are actually working less than their potential.
12.“Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Answer: No, this is not correct. The tertiary sector is playing a significant role in the development of the Indian Economy. In the year 2003, the tertiary sector replaced the primary sector as the most producing sector in the country. A few reasons to support this are given below:

1. The primary and secondary sectors can only flourish if the tertiary sector is there to support them.
2. The tertiary sector adds up a lot to the National income of the country.
3. Education, which is the basis of everything, comes under the tertiary sector. A person working as a teacher comes under the tertiary sector.
4. This sector provides the maximum employment opportunities to the people in the country.

13. Service sector in India employs two different kinds of people. Who are these?
Answer: Service sector in India employs two different types of people. These people are:

1. Highly Skilled labour, which includes teachers, bankers, IT officials, etc. These people are permanently employed.
2. Less Skilled Labour, which includes vendors, electricians, plumber, etc. These people are not permanently employed.

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer: The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed. Jobs here are low paid and not regular. Hence, it is correct to say that workers are exploited in the unorganised sector because more work is taken from them in comparison to what they are paid. They have no provisions or extra pay for overtime and no medical benefits. The biggest problem in working in this sector is that there is no job security.
15. How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of the employment conditions, the economy can be classified into two sectors:

1. Organised Sector: Enterprises registered under the Government of India, who have an employee-friendly environment and are provided with various facilities including high wages.
2. Unorganised Sector: Small and scattered units which are temporary. The employees in this sector are paid less.

16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: In the organised sector, the employees are given higher wages, medical facilities, a healthy working environment and their jobs are permanent. They are not liable to look for a new source of income each day. In the unorganised sector, the wages are low, the employees are exploited, no extra income for extra time is given, no medical facilities are provided and the work environment is unhealthy.
17. Explain the objective of implementing the NREGA 2005.
Answer: The National Rural Employment Guarantee Act, 2005 was introduced with an aim to ensure guaranteed 100 days of employment in a year to all those who are in need of work. It also states that in the case of employment not being provided under this act, employment wages will be given to those left unemployed. Additional employment opportunities need to be created for people in villages and smaller towns.
18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer: In the private sector, the assets and industries are owned by individuals and in the public sectors industries and enterprises are owned by the Government. Private sector works to earn profits and the public sector works to provide facilities to the public and to earn profits. The common examples of the public sector that we can see around us are Government Banks, Post Offices, municipal hospital and Indian railways. The common examples of the private sector that we can see around us are IT companies, malls and multiplexes, etc.
19. Discuss and fill the following table giving one example each from your area.

	Well Managed Organisation	Badly Managed Organisation
Public Sector
Private Sector

Answer: Students must answer this question based on their own observations.
20. Give a few examples of public sector activities and explain why the government has taken them up.
Answer: The public sector activities are set for the betterment of the public itself. The reason the government has taken up the public sector is so that proper facilities can be provided to the people of the country. Banks, transport, irrigation, electricity, water and all the basic things that are necessary for people, come under the public sector. Providing these facilities to its citizens is the responsibility of the Government.
21. Explain how the public sector contributes to the economic development of a nation.
Answer: The public sector is the sector that comes under the government of India. The reason for the government to take responsibility for this sector is because the basic necessities of people including water, electricity, irrigation, all fall under this category. If these departments are left unattended, it will result in the downfall of the economy of a country because the growth of the country would stop. The economic development of a country depends upon the development of the people and if people are deprived of the basic necessities, the country’s economic development would be affected. Government encourages small and large industries to flourish and provides employment under this section.
22. The workers in the unorganised sector need protection on the following issues : wages, safety and health. Explain with examples.
Answer: The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed. The workers in the unorganised sector need protection:
Wages: The income of workers in the unorganised sector is not fixed and they are barely able to meet the needs to lead a decent livelihood. Hence proper and fixed wages should be given to these workers so that they can grow and contribute to the growth of the country. For example – a painter only gets paid the wages for the days he works and on the other days, he is jobless and is able to earn nothing.
Safety: No safety is provided to the workers working in the unorganised sector. There is no job security and anyone can be fired and removed from their work as per the requirement of the labourers. For example – A labour working in the construction of a building is left with no work once the construction is complete and has no guarantee of getting work again.
Health: Health is a very important factor for the growth and development of the country. The unorganised sector is given no medical security and if any accident occurs while they are working, the employer is not responsible for their health. For example – there is no sick leave for labourers working on daily wages.
23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Answer:

Total Workers	Workers in Unorganised Sector	Total Income of City (1997-1998)	Income generated by organised sector	Income generated by unorganised sector
15,00,000	11,00,000	60,000 million	32,000 million	28,000 million

The table clearly shows that the income generated in unorganised sector is close to 50% of the total income of Ahmedabad. In order to increase employment opportunities for the people more industries should be set up, proper education must be provided to all and proper facilities under the public sector must be provided to all.
24. The following table gives the GDP in Rupees (Crores) by the three sectors:

Year	Primary	Secondary	Tertiary
2000	52,000	48,500	1,33,500
2013	8,00,500	10,74,000	38,68,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?
Answer:
(i) In 2000, primary sector = 22.22%, secondary sector = 20.73%, tertiary sector = 57.04% And In 2013, primary sector = 13.94%, secondary sector = 18.70%, tertiary sector = 67.36% (ii)
(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has increased by 10%, while that of the primary sector has almost halved. The secondary sector has grown by about 2% in the last 13 years.

 

NCERT Solutions for Class 10 Economics Chapter 1 – Development

 Exercises Page No 16

1. Development of a country can generally be determined by

1. its per capita income
2. its average literacy level
3. health status of its people
4. all the above

Answer: d. all the above

2. Which of the following neighbouring countries has better performance in terms of human development than India?

1. Bangladesh
2. Sri Lanka
3. Nepal
4. Pakistan

Answer: b. Sri Lanka

3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family?

1. Rs 7500
2. Rs 3000
3. Rs 2000
4. Rs 6000

Answer: d. Rs 6000

(4000+7000+3000+x) ÷ 4 = 5000

14000+x = 5000 × 4

x = 20000-14000

x = 6000

4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

Answer: World Bank uses the per capita income to classify different countries. The per capita income is calculated by dividing the total income of the country by the population of the country. For the year 2017, the countries with per capita income of US $12,056 per annum were declared rich countries and the countries with per capita income of US $ 955 or less are called low-income countries.

The limitations of the criterion are:

1. Other important factors, including literacy rate, infant mortality rate, healthcare, are ignored while classifying the countries.
2. Information about the unequal distribution of income is not mentioned by The World Bank
3. The economy of the country cannot determine the development of the country.

5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

Answer: The criterion used by UNDP is different from the one used by the World Bank because UNDP compares countries based on the educational level of the people, their health status and per capita income. This is in contrast with the method used by the World Bank because the World Bank only calculates the per capita income for measuring development.

6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.

Answer: Different countries have a different population, so calculating the average helps in getting an estimated answer which can be used to compare different things at different levels. There are limitations of calculating averages because we cannot know the difference in the income of the people and the unfair distribution of income in a country or state.

For example, if we calculate the per capita income of two countries A and B with 5 people each, the salary of five people in country A is Rs.23,000, Rs.22,000, Rs.23,500, Rs.28,000 and Rs.25,000 and the income of people living in country B are Rs.1,50,000, Rs. 22,000, Rs.50,000, Rs.4000, Rs.2500. The average income of country A will be Rs.24,300, and that of country B will be Rs.45,700. This proves that the average of country B is higher than that of country A, and yet there is a disparity in the income distribution of country B and the income is evenly distributed in country A.

7. Kerala, with lower per capita income has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

Answer: Kerala, with lower per capita income, has a better human development ranking than Haryana. Hence, per capita income is not a useful criterion at all and should not be used to compare states. This is true because the literacy rate, infant mortality rate, healthcare facilities, etc. are better in Kerala in comparison to Haryana. The per capita income is only calculated by calculating the average income of the state, irrespective of any other factor.

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?

Answer: The present sources of energy used by people in India include firewood, coal, petroleum, crude oil and natural gas. The other possibilities fifty years from now can be using solar energy and wind energy as a source for various energy forms. This is because the current usage of sources of energy may result in the loss of these resources for future generations.

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

Answer: Sustainable development refers to using natural resources in a manner so that they can be used by the present and future generations. The issue of sustainability is important for development because if the natural resources are not used carefully, they may not be available for future generations. The depleting resources of a country may ultimately result in a lack of development of the country.

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.

Answer: Development not just depends on the economic factors of a country, but is also dependent on resources that are available for the people of a country to use. 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 natural resources are non-renewable resources. 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 for their needs, which will result in the downfall of development of a country.

11. List a few examples of environmental degradation that you may have observed around you.

Answer: A few examples of environmental degradation that we can observe around us are:

1. Pollution caused by vehicles and the excess use of fuels in vehicles.
2. Industrial waste collected in residential areas and discarded into water bodies
3. Deforestation
4. Mining
5. Soil Erosion

The increased pollution in the environment has resulted in global warming and depletion of glaciers and the atmospheric conditions.

12. For each of the items given in Table 1.6, find out which country is at the top and which is at the bottom.

Answer: As per table 1.6, Sri Lanka tops in all the four categories. It has the highest Gross National Income, Life expectancy at birth, mean years of schooling of people aged 25 and above and HDI rank in the world. Nepal has the lowest Gross National Income among the given countries. Pakistan has the least Life Expectancy at birth and ranks the lowest HDI rank in the world among the given countries. Mean years of schooling of people aged 25 and above is the lowest for Myanmar and Nepal.

13. The following table shows the proportion of adults (aged 15-49 years) whose BMI is below normal (BMI <18.5 kg/m2) in India. It is based on a survey of various states for the year 2015-16. Look at the table and answer the following questions.

State	Male	Female
Kerala Karnataka Madhya Pradesh	8.5 17 28	10 21 28
All States	20	23

1. 1. Compare the nutritional level of people in Kerala and Madhya Pradesh.

Answer: The nutritional level of people in Kerala is higher than the nutritional level of people in Madhya Pradesh.

1. 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.

Answer: One-fifth of the population in the country are undernourished even though it is argued that there is enough food in the country because of the following reasons:

1. The disparity in the distribution of food grains by Public Distribution System (PDS).
2. Nutritious food cannot be afforded by the poor population in the country.
3. Educational backwardness of people results in unemployment because of which people cannot afford the basic necessity of food.
4. There is no proper distribution of ration at the fixed price stores.