CHAPTER 1- DEVELOPMENT (ECONOMICS CLASS 10)

1. What is average income?

Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

2. “Development of one may be the destruction of another”-give reasons to support your answer.

The so called development may be considered development for human beings; but It is not development for the environment, flora and fauna. An example is building of thermal or nuclear power plants.

3. Why do different persons have different notions of development? Which of the following explanations is more important and why?

(a) Because people are different. 

No, because people have different occupations and different lifestyles. since people have the different quality of life, so notions of development are not similar to each other.

(b) Because life situations of persons are different. 

Different persons have different notions of development because life situations of persons are different. Development goals of a girl from a rich urban family will be surely different from a farmer in Rajasthan. It is because their situations, lifestyle and status are very different from each other.

4. Do the following two statements mean the same? Justify your answer.
(a) People have different developmental goals.
(b) People have conflicting developmental goals. 

Similarly, for development, people look at a mix of goals. It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business. Hence, the developmental goals that people have are not only about better income but also about other important things in life. 

5. Give some examples where factors other than income are important aspects of our lives.

Though income is one of the most important aspects of our lives, there are other important things, such as: People also seek things like equal opportunities, respect in society, freedom, and social security . Women need safe and secure environment to take up a variety of Jobs or run a business. People also need political rights.

6. Explain some of the important ideas of the above section in your own words.

Give three examples where an average is used for comparing situations. 

Why do you think average income is an important criterion for development? Explain. Besides size of per capita income, what other property or income is important in comparing two or more societies? 

Per capita income is useful for comparison. But it does not tell us how this income is distributed among people. So apart from size of per capita income, equitable distribution of income is important in comparing two or more societies.

8. Write a paragraph on your notion of what should India do, or achieve, to become a developed country. Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above

In general, a country's growth is determined by its per capita income, average literacy level, and health status of its population. A country's growth is a broad phrase that refers to an increase in per capita income and living standards. It also reduces poverty, crime rates, and illiteracy among individuals.

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

India ranks 132 out of 191 countries and territories in the Human Development Report 2021/2022. Bangladesh ranked 129th among 191 countries in this year's Human Development Index, according to Human Development Report 2021-22. The United Nations Development Programme has ranked Sri Lanka in the "High Human Development" category, occupying the rank 73.. While Nepal improved its ranking from 144th to 143th position, the Human Development Index. Pakistan has dropped seven places in the Human Development Index (HDI), ranking 161 out of 192 countries in the 2021-2022 

(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan

10. 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? 

(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000

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

Per capita income is the main criterion used by the World Bank in classifying different countries. Per capita income is the total income of the country divided by the number of people in that country. But the disadvantage here is It does not tell us about how this average income is distributed among the people in the individual countries.

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

The criterion used by the UNDP for measuring development is different from the one used by the World Bank in the sense that it uses a combination of factors such as health, education and income as indicators of development. It does not rely solely on per capita income, as is the case with the World Bank.

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

We use averages because they are useful for comparing differing quantities of the same category. For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people.

14. 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?

Present sources of energy used by people in India are-coal, lignite, petroleum, natural gas, LPG, electricity, etc. Fifty years from now there is a possibility that people will be making more use of non-conventional sources of energy, nuclear energy, energy from motion, etc.

15. Why is the issue of sustainability important for development? “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.

Sustainability is the ability to exist and develop without depleting natural resources for the future. The United Nations defined sustainable development in the Brundtland Report as development that meets the needs of the present without compromising the ability of future generations to meet their own needs

16. List a few examples of environmental degradation that you may have observed around you. The question of sustainability of development raises many fundamentally new issues about the nature and process of development.
Environmental degradation is the deterioration of the environment through depletion of resources such as quality of air, water and soil; the destruction of ecosystems; habitat destruction; the extinction of wildlife; and pollution.
Environmental degradation has become a common concern for humankind over the past few decades. The distinctive nature of the present environmental problems is that they are caused more by anthropogenic means than by natural phenomena[1].
Mindless consumerism and economic growth have started to demonstrate pernicious effects on Mother Nature. In spite of this, the pace and desire for economic development have never ceased. It is the branch economics that has dictated environmental policy and its effect on the resources.
Emphasis has been placed on the role of science and technology as a catalyst for integrating ecology with economics to heal the damage cause to the environment. In this process, sustainable development became a buzzword to fight against human greediness and save resources for future generations[2].
Environmental degradation is the deterioration of the environment through depletion of resources such as air, water and soil; the destruction of ecosystems and the extinction of wildlife. It is defined as any change or disturbance to the environment perceived to be deleterious or undesirable.
Environmental impact or degradation is caused by the combination of an already very large and increasing human population, continually increasing economic growth or per capita affluence and the application of resource depleting and polluting technology. Environmental degradation is one of the Ten Threats officially cautioned by the High Level Threat Panel of the United Nations.
The United Nations International Strategy for Disaster Reduction defines environmental degradation as The reduction of the capacity of the environment to meet social and ecological objectives and needs. Environmental degradation is of many types.
(a) Is crude oil essential for the development process in a country? Discuss

Crude oil is mainly used as a fuel and combustible, but is also indispensable as a chemical raw material. It is the foundation of modern life and in virtually every product around us – from smartphones and vehicle parts to wind turbines. The raw materials required to make the components for circuit boards include crude oil (to make plastics), and silicon.

(b) India has to import crude oil. What problems do you anticipate for the country looking at the above situation?

India has to import oil to meet the ever increasing industrial and domestic demands. India ranks among the top 10 largest oil-consuming countries in the world. About 30% of India's total energy consumption is met by oil. Although India consumes around 2.2 million barrels of oil per day, the production is only about 0.8 million barrels per Although, Brazil, Colombia and Gabon already supply crude to India, the quantity is not significant and India is now looking to increase the imports from these countries. According to data from the ministry of commerce, India imported crude oil worth $722.54 million from Brazil in April-July 2022.

High oil prices can drive job creation and investment as it becomes economically viable for oil companies to exploit higher-cost shale oil deposits. However, high oil prices also hit businesses and consumers with higher transportation and manufacturing costs.
17. a) Why groundwater is overused?(b) Can there be development without overuse?
Groundwater is an example of renewable resources. These resources are replenished by nature as in the case of crops and plants. However, even these resources may be overused. For example, in the case of groundwater, if we use more than what is being replenished by rain then we would be overusing this resource.
Due to large and growing population and consequent greater demands for water and unequal access to it. excessive use of tube wells for human consumption is also responsible for overuse of ground water. (b) To facilitate higher food grain production for large population, water resources are being over exploited to expand irrigated areas and dry season agriculture.(c) Water is used for industrial consumption also.
Development is also possible without over use. This is what we know as " Sustainable development" . Sustainable development uses today resources judiciously, so that the future generation too has their fair share of resources. Promoting sustainable development can to lots to preserve ground water levels.
UNITED NATIONS DEVELOPMENT PROGRAMME
UNDP's overall goal is to contribute to sustainable human development. UNDP has four focus areas in its mandate: poverty reduction, democratic governance, environment and energy, and crisis prevention and recovery. UNDP partners with people at all levels of society to help build nations that can withstand crisis, and drive and sustain the kind of growth that improves the quality of life for everyone.
TERMS USED IN ECONOMICS

Per Capita Income - Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

Literacy Rate - Literacy rate is the literate population of the age group 7 years and above divided by the total population of the same age group. National Statistical Commission surveyed literacy to be 77.7% in 2017–18. Literacy rate in urban areas was higher 87.7% than rural areas with 73.5%.

Infant Mortality Rate - The infant mortality rate is the number of infant deaths for every 1,000 live births. In addition to giving us key information about maternal and infant health, the infant mortality rate is an important marker of the overall health of a society. The current infant mortality rate for India in 2022 is 27.695 deaths per 1000 live births, a 3.74% decline from 2021. The infant mortality rate for India in 2021 was 28.771 deaths per 1000 live births, a 3.61% decline from 2020.

Attendance Ratio- Net Attendance Ratio is the total number of children in the age group of 6-10 that attend school as a percentage of the total number of children in the same age group. Primary net attendance is highest in the Tamil Nadu region (90%); attendance is lowest in the Meghalaya region (46%).

Life Expectancy-The term “life expectancy” refers to the number of years a person can expect to live. By definition, life expectancy is based on an estimate of the average age that members of a particular population group will be when they die.The current life expectancy for India in 2022 is 70.19 years.

Gross Enrolment Ratio - Gross enrolment ratio is the ratio of total enrolment, regardless of age, to the population of the age group that officially corresponds to the level of education shown. In financial year 2019, the gross enrolment ratio for the secondary level of education in India was over 50 percent. This was the highest enrolment rate in the past years.

Human Development Index - The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three dimensions. The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The HDI is the geometric mean of normalized indices for each of the three dimensions.

Purchasing Power Parity - Purchasing power parities (PPPs) are the rates of currency conversion that try to equalise the purchasing power of different currencies, by eliminating the differences in price levels between countries. Purchasing power parity is the measurement of prices in different countries that uses the prices of specific goods to compare the absolute purchasing power of the countries' currencies, and, to some extent, their people's living standards. Purchasing power parity (PPP) is a popular metric used by macroeconomic analysts that compares different countries' currencies through a "basket of goods" approach. In principle, the basket should contain all consumer goods and services purchased by households and the prices measured in every shop or outlet that supplies them.