Part – B

Answer the following questions in one or two sentences

Question 21.
Write the meaning of Economic Growth.
Answer:
A country’s economic growth is usually indicated by Gross Domestic Product (GDP). The GDP is the total monetary value of the goods and services produced by that country over a specific period of time, usually one year.

Question 22.
State any two features of developed economy.
Answer:

  1. High National Income
  2. High per capital Income
Question 24.
Point out any one feature of Indian Economy
Answer:
Indian economy is a mixed economy. In India both the private and public sectors coexist.

Question 26.
Give a short note on Sen’s ‘Choice of Technique’.
Answer:
In a labour surplus economy, generation of employment cannot be increased at the initial stage by the adaptation of capital intensive technique whatsen called as choice of technique.

Question 27.
List out the reasons for low per capital income as given by V.K.R.V. Rao.
Answer:

  1. Uneconomic holdings.
  2. Low levels of water availability for crops.
  3. Excess population pressure on agriculture due to the absence of a large industrial sector.
  4. Absence of capital.
  5. Absence of autonomy in currency policy.

Part – C
Answer the following questions in one Paragraph

Question 28.
Define Economic Development.
Answer:
The level economic development is indicated not just by GDP, but by an increase in citizen’s quality of life or well-being. The quality of life is being assessed by several indices such as Human Development Index (HDI), Physical Quality of Life Index (PQLI) and Gross National Happiness Index (GNHI)

Question 29.
State Ambedkar’s Economic ideas on agricultural economics.
Answer:
Dr. B.R.Ambedkar was a versatile personality. In 1918, he published a paper “Small holding in India and their remedies” citing Adam Smith’s “Wealth of Nations”, he made a fine distinction between “Consolidation of holdings” and “Enlargement of holdings”.

Question 30.
Write on short note on village sarvodhaya.
Answer:
Village sarvodhaya is the concept of Gandhiji on the development of villages. To Gandhi India lives in villages. He was interested in developing the villages as self – sufficient units.

According to him, “Real India was to be found in villages and not in towns or cities”.
So he suggested the development of self-suffficient, self dependent villages.


Question 31.
Write the strategy of Jawahar lal Nehru in India’s planning.
Answer:

  1. Jawahar lal Nehru was responsible for the introduction of planning in our country.
  2. To Nehru, the plan was essentially an integrated approach for development.
  3. He said the essence of planning is to find the best way to utilize all resources of manpower, of money and so on.
  4. Planning for Nehru was essentially linked up with industrialization and eventual self reliance for the country’s economic growth on a self-accelerating growth.
  5. Nehru carried through this basic strategy of planned development.

Question 32.
Write the V.K.R.V.Rao’s contribution on multiplier concept.
Answer:

  1. Rao’s examination of the “interrelation between investment, income and multiplier in an under developed economy (1952)” was his major contribution to macroeconomic theory.
  2. In it he asserts that keynesian multiplier principle remains inoperative in underdeveloped countries.
  3. V.K.R.V. Rao was the best equipped of all keynes’ pupils.

Question 33.
Write a short note on Welfare Economics given by Amartya Sen.
Answer:

  1. Amartya Sen was awarded the nobel prize for his contributions to welfare economics.
  2. Sen’s major point has been that the distribution of income / consumption among the persons below the poverty line is to be taken into account.
  3. Sen has focused on the poor, viewing them not as objects of pity requiring charitable hand-outs, but as disempowered folk needing empowerment in all aspects.

Part – D
Answer the following questions in about a page

Question 35.
Explain strong features Indian economy
Answer:

  1. India has a mixed economy : In India both private and public sectors coexist.
  2. Agriculture plays the key role : Around 60% of the people in India depend upon agriculture for their livelihood.
  3. An emerging market: India has a high potential for prospective growth which attracts FDI and FII.
  4. Emerging economy : As a result of rapid economic growth Indian economy has a place among the G20 countries.
  5. Fast growing economy : India has emerged as the world’s fastest growing economy in 2016-17 with 7.1% GDP next to China.
  6. Fast growing service sector : The service sector, contributes a lion’s share of the GDP in India.
  7. Large domestic consumption : Due to large domestic consumption the standard of living has considerably improved and life style has changed.
  8. paid growth of urban areas : Improved connectivity in transport and communication, education and health have speeded up the pace of urbanization.
  9. Stable macro economy : The current year’s economic survey represents the Indian economy to be a heaven of macroeconomic stability, resilence and optimism.
  10. Demographic dividend : India is a pride owner of the maximum percentage of youth. This has invited foreign investments to the country and outsourcing opportunities.

Question 37.
Bring out Jawharlal Nehru’s contribution to the idea of economic development.
Answer:
Jawahar Lal Nehru was one of the Chief builders of modem India. He was a great patriot, thinker and statesman. His ideas of economic development are :

1. Democracy : He was a firm believer in democracy. He believed in free speech, civil liberty, adult franchise and the rule of law and parliamentary democracy.

2. Secularism : Secularism is another signal contribution of Nehru to India. There are so many religions in India but there is no domination by religious majority.

3. Planning : Nehru was responsible for the introduction of planning in our country. The plan was essentially an integrated approach for development. Planning for Nehru was essentially linked up with industrialization and eventual self-reliance for the country’s economic growth on a self-accelerating growth.

4. Advancement of Science : Nehru made a great contribution to the advancement of Science, research, technology and industrial development. In his period, many IITs and research institutions were established. He always insisted on scientific temper.

5. Democratic socialism : Nehru put the country on the road towards a socialistic pattern of society. Nehru’s socialism is democratic socialism.


Question 38.
Write a brief note on the Gandhian economic ideas.
Answer:
Gandhian economics is based on ethical foundations.
Salient features of Gandhian economic thought:

  1. Village republics : Gandhi was interested in developing the villages as self-sufficient units.
  2. On machinery : Gandhi described machinery as ‘Great Sin’.
  3. Industrialism : Gandhi considered industrialism as a curse on mankind.
  4. Decentralization : He advocated a decentralized economy.
  5. Village sarvodaya : Gandhi suggested the development of self-sufficient, self-dependent villages.
  6. Bread labour: Gandhi realized the dignity of human labour. Bread labour or body labour was the expression that Gandhi used to mean manual labour.
  7. The doctrine of trusteeship : Trusteeship provides a means of transforming the present capitalist society into an egalitarian one.
  8. On the food problem : Gandhi was against any sort of food controls. Food controls only create artificial scarcity.
  9. On population : Gandhi was in favour of birth control through brahmacharya or self-control.
  10. On prohibition : Gandhi advocated cent per cent prohibition.