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DPS-MODERN INDIAN SCHOOL, DOHA, QATAR
CLASS X
ECONOMICS NOTES
ACADEMIC YEAR 2016-2017
CHAPTER-1 DEVELOPMENT
DEFINATION:
1. GDP: Gross Domestic Product is the total value of all final goods and services
produced in an economy within a year.
2. National Income: Total value of all final goods and services produced within a
country in a year plus income from abroad.
NATIONAL INCOME = GDP+ Income from Abroad
3. Per Capita Income or average Income: It is obtained by Dividing the National Income
y the population of the country.
Per Capita Income = ___ National Income____
Total Population
4. Economic Growth: It a process whereby a country’s real income increases over a
long period of time.
In other words, it is concerned with increase in national Income of the country.
5. Economic Development: A sustained increase in real per capita income that
promotes economic welfare by reducing poverty, unemployment and inequalities
in Distribution of income.
Economics Development= Economic Growth + change
6. Human Development Index :
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7. Sustainable Development: It means that development should take place without
damaging the environment, and development in the present should not
compromise with the needs of the future generation.
Questions and Answers:
8. What are the factors that are important to people other than Income?
Ans. Freedom, Equal Treatment, Security, peace, Respect for others, Hygienic
Environment, Medical Facilities etc.
9. Explain the main reasons for the need for environment friendly economic growth
and two suggestions to achieve them.
And. Reasons for the need of environment friendly Economic Growth:
i.
Present production technology has polluted atmosphere and water bodies
with garbage, smoke and poisonous gases.
ii.
Rapid economic growth and industrialization have led to reckless exploitation
of natural Non- renewable resources.
iii.
Industrial effluents pollute rivers.
Suggestions to achieve it:
i.
Increase in the use of the alternative sources of energy like solar energy, wind
energy, nuclear energy etc.
ii.
Measures to reduce Global warming and Global limits on carbon emission etc.
iii.
Control overuse of mineral health.
iv.
Proper fuel selection and utilization.
v.
Careful planning and setting of industries and proper treatment of industrial
waste.
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10.Why do you think average income is an important criterion for development?
Ans. Per Capita Income is an important criterion because it gives some idea about
the rising standard of living. Prosperity of a country depends not only on the size of
its national income but also on the number of people who would share it. A rising in
average ( i.e. per capita income) indicates that more goods and services are available
on average to people.
11.What are the limitations of per capita income?
Ans. i.
Average income is not the only factor of production, this factor hides
‘Distribution of Income’ i.e. it hides disparities of income.
ii.
Per capita income does not show the Equitable distribution of income in a
country.
iii. National Income rises due the section of the society having high levels of
income. Leading
to a big gap between the rich and the poor.
iv. It excludes all non-marketed goods and services like goods produced for Selfconsumption.
v. Rise in per capita income may be due to use of modern capital intensive
technology in production which may be labour displacing in nature thus adversely
affecting the poor masses.
12.Besides size of per capita income, what other property of income is important in
comparing two or more societies?
Ans. Average income i.e. per capita income is an important but not the only criterion
for development. Along with average income, equitable distribution of income in a
country should also be considered. If the national income is widely distributed
among the people, it shows a better distribution of income. High per capita income
combined with a better distribution of income is a good index of economic welfare.
13.How is BMI calculated? Explain the three steps taken.
Ans. Body Mass Index(BMI):
Step 1 : Weight of a person in kg and height in metres is taken.
Step 2 : Divide the weight by the square of the height.
BMI= ___Weight___
(Height)2
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Step 3 :If BMI < 18.5, then person is undernourished
If BMI > 25 , then the person is overweight
14.Write a short note on Human Development Index. What is the significance of this
approach?
Ans. Human Development is a ‘ Human-Centered’ approach towards development.
It is concerned with their well-being, needs, choices and inspirations.
Human Development is a wider term which not only includes economic
development but also includes development of one’s knowledge and educational
capabilities as well as one’s health conditions so that one may lead a healthy and
long life.
Human Development aims at:
i.
Building of different human capabilities so that one may make use of the
natural resources , have sustainable development , have personal and social
security.
ii.
People will have all opportunities not only of livelihood but also to
ensure a decent standard of living.
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