Economics – Chapter 1: Development (Class 10 CBSE)
1. What is Development?
Development means improvement in people’s living standards and
quality of life.
It is about both economic growth (income, wealth) and non-economic
factors (health, education, freedom, equality, dignity).
Development is different for different people.
👉 Example:
For a farmer – more irrigation, better seeds.
For a student – good education, better opportunities.
For women – equality, respect, safe environment.
2. Different People, Different Goals
Development goals vary from person to person, but one’s goal may
conflict with another’s.
Example:
o An industrialist wants more factories → may mean pollution for
nearby residents.
Some goals are common to all: better income, equality, security,
freedom, education, and health.
3. Income and Other Goals
People see income as the most important goal because it helps meet
basic needs (food, clothes, shelter).
But income alone is not enough.
Other important goals:
o Respect, freedom, equality
o Good education and health
o Security and safety
👉 Example: A job that pays well but has no security may not be considered a
good job.
4. National Development
National development = development of the whole country.
It includes:
o Raising income of people
o Reducing poverty
o Providing health care, education, infrastructure, etc.
Different people may have different ideas of national development.
👉 Example:
Some want dams for electricity.
Others oppose dams because they displace people.
5. How to Compare Countries?
We compare countries using Per Capita Income (Average Income):
Per Capita Income=Total Population/National Income
Countries are classified by the World Bank (2017 cut-off values):
o Low-income countries (LICs): per capita income < $1005 per
year.
o Middle-income countries: $1006 – $12,235.
o High-income countries (HICs): > $12,236.
India’s per capita income is in the middle-income group.
6. Limitations of Per Capita Income
Per capita income does not tell us about:
o How income is distributed (rich vs. poor).
o Quality of life (health, education, pollution, security).
👉 Example:
If a country’s average income is high but only a few people are rich while others
are very poor, then development is not equal.
7. Other Criteria for Development
Apart from income, we look at:
Literacy rate (education).
Life expectancy (health).
Infant Mortality Rate (IMR): number of children dying before age 1 per
1000 live births.
Net Attendance Ratio: percentage of children attending school.
8. Human Development Report (HDR)
Prepared by UNDP (United Nations Development Programme).
Uses indicators like:
o Per capita income
o Education (literacy, years of schooling)
o Health (life expectancy)
👉 Countries are ranked by HDI (Human Development Index).
9. Sustainability of Development
Development should be sustainable, i.e., meet present needs without
harming future generations.
Overuse of natural resources → harms environment.
Examples:
o Overuse of groundwater → water shortage in future.
o Cutting forests → loss of biodiversity, climate change.
Sustainable development means using resources wisely and carefully.
Extra Questions
1 Mark Questions (MCQs)
1. Which one of the following is not a criterion used by UNDP to compare
countries?
a) Per capita income
b) Literacy rate
c) Life expectancy
d) Export of goods
2. Infant Mortality Rate (IMR) refers to:
a) Number of children dying before the age of 1 per 1000 live births
b) Death rate of women during childbirth
c) Death rate of men under 15 years
d) None of the above
3. Which of the following is a sustainable activity?
a) Overuse of groundwater for irrigation
b) Planting more trees in forests
c) Mining coal at a faster rate
d) Cutting forests for industries
4. Which country has the highest HDI rank among India, Nepal, and Sri
Lanka?
a) India
b) Nepal
c) Sri Lanka
d) All equal
5. Which of the following is a non-economic development goal?
a) More income
b) Good health facilities
c) Better job opportunities
d) Higher savings
2 Mark Questions
1. Define development. Give two examples of developmental goals.
[Link] is per capita income? How is it calculated?
[Link] is income considered an important goal, but not the only goal of
development?
[Link] two limitations of using per capita income as the only indicator of
development.
[Link] the term sustainable development with an example.
3 Mark Questions
1. “Different people have different development goals.” Explain with three
examples.
2. Compare the Infant Mortality Rate (IMR) of India and Sri Lanka and give
reasons for the difference.
3. Distinguish between economic and non-economic development goals with
examples.
4. Why do we use averages (like per capita income) for comparison between
countries?
5. Write three features of Human Development Report (HDR).
Case-Based Questions – Development (Class 10 Economics)
Case Study 1: Per Capita Income
Read the passage and answer the questions:
The average income of Country A is ₹25,000, and Country B is ₹50,000.
However, in Country A, most people earn between ₹20,000–₹30,000, while in
Country B, a few very rich people earn a lot but many others earn less than
₹10,000.
Questions:
a) Which country has a higher per capita income?
b) Does higher per capita income always mean better development? Why/Why
not?
c) Which country do you think has more equal distribution of income?
Case Study 2: Different Development Goals
Radha wants a permanent government job with good salary and security. Mohan
wants a big loan to start his own business. Lalita wants better schools and
hospitals in her village.
Questions:
a) What does this case show about different people’s development goals?
b) Write one common goal that all of them may have.
c) Why is it not correct to think that income alone is development?
Case Study 3: Human Development Report (HDR)
According to UNDP Human Development Report 2020:
Sri Lanka has a higher life expectancy and literacy rate than India.
India’s per capita income is higher than that of Nepal.
But Nepal has made progress in reducing Infant Mortality Rate.
Questions:
a) What does HDR use to compare development between countries?
b) Which country among India, Sri Lanka, and Nepal is doing better in health
indicators?
c) Why is it better to use HDI instead of per capita income alone?
Case Study 4: Sustainability of Development
A farmer in Punjab grows wheat by using tube wells for irrigation. Over time, the
water table in the region has fallen drastically. Scientists warn that groundwater
may not be available in the future if overuse continues.
Questions:
a) What problem is shown in this case?
b) Define sustainable development.
c) Suggest two ways to reduce overuse of groundwater.
Case Study 5: Correlation of Health and Education
In one village, the literacy rate is very low. Children do not attend school
regularly, and many adults are illiterate. The same village also reports high infant
mortality rate and poor public health facilities.
Questions:
a) How are education and health related to development?
b) Why do you think IMR is high in this village?
c) Suggest two measures to improve the development of this village.