Economics Chapter 1
Development
1. What are the main criteria used by the World Bank to classify different countries?
What are the limitations of the criteria, if any?
ANS: Per capita income or average income (measured in dollars) is the main criteria
used by the World Bank to classify different countries if they have developed or highly
developed, under developed or low income countries. The per capita income or average
income is calculated by dividing the total income of a country by its population.
According to the world development report, countries with per capita income of $12,056,
per annum or more are termed rich countries, developed countries or high income
countries. On the other hand, countries with per capita income of $955 or less are
classified as underdeveloped or low income countries.
Per capita income as an indicator of the people belonging to the highest strata of
society and lowest data of society.
Per capita income 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.
2. What is development? Mention two aspects of development.
ANS: Develop development is the positive growth or change in economical, social and
political aspects of a country. 2 aspects:
● economic development, a rise in the income of people.
● Social development, which includes health, education, and public services.
3. ‘Development for one may be destruction for others.’ Do you agree? Justify.
ANS: I certainly agree with the statement that development for one may be destruction
for others. People who have different developmental goals see what is most important
for them and fulfil their aspirations and desires. For example, the establishment of a
dam leads to infrastructure development, generation of electricity, et cetera, but at the
same time, it may lead to large displacement of people, loss of livelihood, shelter, et
cetera of the people living near the proposed dam site. Hence, construction of a dam
may be development for one, but may be destruction for others.
4. Mention any three characteristics of development.
ANS: The following are three major characteristics of development:
● What may be development for one may not be development for the other – it may
be destructive.
● Different people can have different developmental goals.
● People tend to look at a mix of goals for their development.
5. Why is average income useful for comparison, but it may hide disparities? Discuss.
ANS: Per capita income or average income is an important criteria for development. It is
considered to be one of the most important attributes for comparing countries. But it has
the following limitations:
● it does not tell us anything about the distribution of income. A poor country with
an equal distribution of income would be better than a rich country with unequal
distribution of income.
● It doesn’t measure various facilities and services that influence the quality of life
like health, education, and equal treatment.
● It is affected by the size of population. Even with a large national income, per
capita income will be low if a country has a large population.
6. Define Infant Mortality Rate.
ANS: the number of children that died before the age of one year as a proportion of
1000 life, children born in that particular year is known as Infant Mortality Rate.
7. What is net attendance ratio?
ANS: Net attendance ratio is the total number of children from the age group 14 and 15
years attending school as a percentage of total number of children in the same age
group.
8. Why are public facilities needed for the development of a country? Give two
examples.
ANS: Public facilities are essential for the social and economic development of
individuals. Without these facilities, people can’t achieve their full potential.
● Each facility is important for maintaining law and order quality of life, cleanliness,
axis, and comfort to common man. These facilities help in bringing up people and
giving these opportunities for which they are otherwise devoid of.
● Some public facilities are roads, railways, electricity, water, educational facilities,
housing, and nutritious food.
9. What is Human Development Index? Name its variables.
ANS: The human development index is a tool developed by the UN to measure a
countries overall achievements in its social and economic dimensions. The HDI ranks
countries on the basis of per capita income, health of people that level of education and
their standard of living.
10. What is sustainable development? Suggest any two ways in which resources can be
used judiciously.
ANS: Sustainable development refers to the development without hampering the needs
of the future generations. It is the concept of durable development carried out by limiting
the needs of the present so that the future generations may enjoy the benefits of nature
to the fullest. The two ways in which the resources can be used judiciously are as
follows:
● Stress on developing techniques for the economic extraction of resources.
● Alternative sources of resource using.
● Effective steps to recycle used resources.
● Using the least amount of nonrenewable resources.
● Limiting waste material and energy at production level.
11. Explain the importance of sustainable development with reference to groundwater
by giving an example.
ANS: Sustainable development is important because you may enjoy the gift of nature,
but we can’t think of our generations to live without such benefits. It becomes our duty
to use nature for the fulfilment of our needs and not our greed. Our development should
not hamper the needs of future generations.
In the case of groundwater, we have utilized it to the maximum. It is a natural resource
which is replenished by nature. People living in the areas with surplus water reserves
should take care of its conservation. Efforts should be made not to overuse or degrade
the quality of water. The recent evidence shows that groundwater is under serious
threat of disappearance. If suitable steps are not taken, it can pose serious
consequences.