Class 10th Economics ( Development )

Key words

• Development : Process of improvement in quality of life,

income, education, health, etc.

• National Development : Development of a country in terms of

income, health, education, equality, and sustainability.

• Per Capita Income : The Per Capita Income is the total income
of the country divided by its total population. It is also called
average income.

• World Development Report : Report brought by World Bank, in

this report countries are compared on the basis of Per capita
income of its citizens. According to this report, countries are
classified as developed or developing.

• Infant Mortality Rate : Infant Mortality Rate indicates the number

of children that die before the age of one year as a proportion of
1000 live children born in that particular year.

• Public Distribution System(PDS) : A food security system

established by the Government of India to provide essential items
at subsidised rate e.g. rice, wheat, sugar, kerosene.
• Literacy Rate : It measures the proportion of the literate
population in the 7 and above age group. It signifies how much
population can read and write.

• Net Attendance Ratio : It is the total number of children of age

group 14 and 15 years attending school as a percentage of total
number of children in the same age group.

• Life Expectancy : Life expectancy at birth denotes, as the name

suggests, average expected length of life of a person at the time of
birth.

• Human Development Report : The report published under the

UNDP ( United Nations development programme ) where
countries are compared on the basis of per capita income,
education, and health status of the population. According to
these principles, countries are ranked over Human development
Index.
Question and answers

1. What is development? How is it different for different people?

Answer:
Development refers to improvement in people’s living conditions
and the enhancement of the quality of life. It includes aspects
such as income, education, health, and equality.
Development is different for different people because:
Different people have different goals (e.g., a farmer may want
better irrigation, while a teacher may want better salary).
What may be development for one can be destructive for another
(e.g., building a dam may benefit industries but displace tribals).

2. What are the common indicators used to measure

development?
Answer:
Common indicators are:
•Per capita income (PCI): Total income of the country divided by
its population.
•Literacy rate
•Life expectancy
•Infant mortality rate
However, development should be assessed using a combination
of indicators, not just income.
3. Why is per capita income not a sufficient measure of
development?
Answer: Per capita income only shows the average income and
doesn’t reveal:
•How income is distributed
•Access to education, health, clean water, etc.
•Whether the growth is sustainable or not
Hence, other indicators are also necessary for a comprehensive
understanding of development.

4. How are countries classified by the World Bank based on

income?
Answer:
According to the World Bank (2017):
•High-income countries: Per capita income of $12,056 or more
•Middle-income countries: Between $1,036 and $12,056
•Low-income countries: $1,035 or less
India is considered a lower middle-income country.

5. What is sustainable development? Why is it important?

Answer:
Sustainable development means development that meets the
needs of the present without compromising the ability of future
generations to meet their needs.
It is important because:
•Natural resources are limited
•Overuse of resources leads to environmental degradation
•Ensures long-term economic and social well-being

6. Give an example of conflicting developmental goals.

Answer:
Setting up a thermal power plant:
•Benefits: Generates electricity, creates jobs
•Harm: Displaces people, causes pollution
Thus, what is development for one group can be harmful to
another.

7. Why is it important to compare different countries or states?

Answer:
Comparing helps:
•Understand relative performance
•Identify better models of development
•Know where improvements are needed
•Frame better policies

8. What is the Human Development Index (HDI)? What are its

indicators?
Answer: HDI is a composite index published by UNDP to measure
development. It includes:
•Life expectancy at birth (health)
•Mean and expected years of schooling (education)
•Per capita income (standard of living)
It gives a more complete picture of development than just
income.

9. Why do different people have different developmental goals?

Answer: Because:
•People have diverse needs, priorities, and circumstances
•Goals depend on age, gender, social status, occupation, etc.
For example, a girl may value education, while an unemployed
youth may want a job.

10. Explain the concept of average income. Why is it also called

per capita income?
Answer: Average income = Total income of a country / Total
population
It is called per capita income because it represents income per
person.
It helps compare the standard of living across countries.
11 Give examples to prove that there are other important
developmental goals than income.
Ans.
● Besides income, the developmental goals of various categories
of people are different from person to person.
● For rich farmer, development means higher support price for
crops, cheap labour and subsidised inputs.
● For landless rural labourer, development means more days of
work, schools for their children and no social discrimination.
● For adivasi, development means no social discrimination, year
round employment, school education for children and PDS shop
in his village.
● For urban girl from rich family, development means freedom to
choose her profession or being able to pursue her higher studies
abroad.

12 What do you mean by Per Capita Income of a country? How

can it be used to compare two countries? Is there any limitation to
its use?
Ans.
● The Per Capita Income of a country is the total Income of the
country divided by its total population.
● It is used to compare the development of countries by the
World Bank.
● The country with a higher Per Capita Income implies that its
people are earning more on an average and this is considered the
indicator of higher development.
● However, this hides the fact that there may be wide differences
in the earnings of people, which implies inadequate social
development.

13 Why is the issue of sustainability important for development?

Ans.
● Sustainability for development or sustainable development
refers to development which takes place without damaging the
environment.
● The issue of sustainability is essential for development
because it should not compromise on the needs of future
generations, otherwise it is meaningless.
● Reckless exploitation of non-renewable natural resources is
going on. Since, the stock of natural resources like oil and
minerals is limited, development should not take place at the
cost of these scarce natural resources, as they are not renewable
in the near future.

14. How is UNDP’s development criteria different from that of the

World Bank?
Answer:
UNDP uses a composite index: income, health (life expectancy),
and education (literacy).
World Bank uses only per capita income.
UNDP provides a broader view of human well-being.

15. What may be a goal of the following people?

(a) Landless rural labourers
(b) Prosperous farmer of Punjab
(c) Farmers dependent on rainfall
(d) Urban unemployed youth
(e) Girl from rich urban family
Answer:
(a) More work, better wages, education.
(b) Higher support prices, better irrigation.
(c) Assured rainfall or irrigation.
(d) Secure job with good income.
(e) Equal freedom, higher education.

MCQs
1 Which of the following organizations publishes the ‘World
Development Report’?
A. IMF
B. WHO
C. UNDP
D. World Bank
Correct Answer:
D. World Bank

2 Which state has the highest literacy rate?

A. Bihar
B. Kerala
C. Haryana
D. Madhya Pradesh

Correct Answer:
B. Kerala

3 What does Net Attendance Ratio measure?

A. Number of students enrolled in colleges
B. Percentage of school-going children aged 14–15
C. Total literacy in a state
D. School dropout rate

Correct Answer:
B. Percentage of school-going children aged 14–15
4 Which of the following are indicators used in the Human
Development Report?
A. Education, Health, Income
B. Religion, Income, Culture
C. Politics, Technology, Tradition
D. Industry, Trade, Export

Correct Answer:
A. Education, Health, Income

5. 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 of the above

Correct answer:
(iv) all of the above

6. Which of the following neighbouring countries has better

performance in terms of human development than India?
(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan
Correct answer:
(ii) Sri Lanka

7. 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

Correct answer:
(iv) Rs 6000

By : Chhavi Tiwari