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Tamilnadu, board, ssc, samacheer kalvi, economics, Chapter 5 Industrial Clusters in Tamil Nadu.

I. Choose the correct answer

Question 1.

‘The Detroit of Asia’ is

(a) Tuticorin

(b) Coimbatore

(c) Chennai

(d) Madurai

Answer:

(c) Chennai

Question 2.

Pumpsets and motors are produced mostly in …………….

(a) Salem

(b) Coimbatore

(c) Chennai

(d) Dharampuri

Answer:

(b) Coimbatore

Question 3.

Tuticorin is known as:

(a) Gateway of India

(b) Gateway of Tamil Nadu

(c) Pump city

(d) None of these

Answer:

(b) Gateway of Tamil Nadu

Question 4.

……………… are an essential aspect of a nation’s development.

(a) Agriculture

(b) Industry

(c) Railway

(d) none of these

Answer:

(a) Agriculture

Question 5.

Tiruppur is known for:

(a) Leather tanning

(b) Lock making

(c) Knitwear

(d) Aigo-processing

Answer:

(c) Knitwear

Question 6.

Along with Ambur and Vaniyambadi ………….. is also a centre for leather goods exports.

(a) Chennai

(b) Sivakasi

(c) Coimbatore

(d) Madurai

Answer:

(a) Chennai

Question 7.

IT means

(a) Indian Technology

(b) Information Technology

(c) Institute of Technology

(d) Initiative Technology

Answer:

(b) Information Technology

Question 8.

A successful industrial cluster entirely created by the Tamil Nadu is ………………

(a) Hosur

(b) Dindigul

(c) Kovilpatti

(d) Thirunelveli

Answer:

(a) Hosur

Question 9.

SIPCOT was formed in the year:

(a) 1972

(b) 1976

(c) 1971

(d) 1978

Answer:

(c) 1971

Question 10.

Which is the Tamil Nadu Industrial Development Agency?

(a) SIPCOT

(b) TANSIDCO

(c) TIDCO

(d) all of these

Answer:

(d) all of these

II. Fill in the blanks

………….. are very important in the modern economic activates of man.

………….. are groups of firms in a defined geographic area that share common market and technologies.

Hundred of leather and tannery facilities are located around ………….. District inTamilNadu.

………….. is fondly calls as ‘Little Japan’.

Special Economic Zones policy was introduced on in …………..

………….. is an innovator of new ideas and business processes.

Answers:

Industrialisation

Industrial Clusters

Vellore

Sivakasi

April 2000

Entrepreneur

III. Choose the correct statement

Question 1.

(i) Entrepreneurship promotes capital formation by mobilising the idle saving of the public.

(ii) They are not provide large scale employment to artisan, technically qualified persons and professionals.

(iii) Entrepreneurs help the country to increase the GDP and per capitals income.

(iv) Entrepreneurs not promote country’s export trade.

(a) (i) and (iv) is correct

(b) (i) only correct

(c) (iii) and (iv) is correct

(d) (i) and (iii) is correct

Answer:

(d) (i) and (iii) is correct

IV. Pick out odd one

Question 1.

Which one of the following is not having leather factories?

(a) Ranipet

(b) Bharmapuri

(c) Ambur

(d) Vaniyambadi

Answer:

(b) Bharmapuri

Question 2.

Which one of the following is not a industrial developing agency?

(a) TIDCO

(b) SIDCO

(c) MEPG

(d) SIPCOT

Answer:

(c) MEPG

V. Match the following

Answer:

A. (iii)

B. (i)

C. (iv)

D. (v)

E. (ii)

VI. Write Short Answer

Question 1.

Why should a developing economy diversify out of agriculture?

Answer:

As an economy grows and incomes increase, consumers tend to spend a lesser share of their income on products from the agricultural sector. There are limits to the ability of agriculture to absorb labour due to the declining marginal productivity of land. Due to this, there is a need for an economy’s production and employment base to diversity away from agriculture.

Question 2.

Why are wages low in the agricultural sector?

Answer:

Labour productivity cannot increase in the agricultural sector as the marginal productivity of land goes on decreasing. Therefore wages remain low resulting in poverty.

Question 3.

What is meant by an industrial cluster?

Answer:

Industrial clusters are groups of firms in a defined geographic area that share common markets, technologies and skill requirements. An important aspect of clusters is the nature of inter-firm networks and interactions.

Question 4.

What are the routes for cluster formation?

Answer:

When artisans settle in one region and slowly spread their art in other regions.

When a large firm is established, to take care of its inputs and service requirements a cluster of firms may emerge.

Governments initiative to encourage Industrial sector using raw materials from a region.

Question 5.

Mention the 3 areas of policy-making that helped Tamil Nadu become one of the most industrialised states in the country.

Answer:

(a) Tamilnadu Industrial Policy – 2014

(b) Tamilnadu SEZs Policy

(c) Tamilnadu Biotechnology Policy – 2014

Question 6.

Mention any three-industrial development agencies in Tamil Nadu and their role.

Answer:

SIPCOT – State Industries Promotion Corporation of Tamil Nadu.

To promote Industrial growth by setting up Industrial Estates.

TIIC – Tamil Nadu Industrial Investment Cooperation Limited

To provide low – cost financial support for both setting up new firms and also to expand.

TIDCO – Tamil Nadu Industrial Development Corporation.

To promote Industrial growth by setting up Industrial Estate

Question 7.

What are the problems of industrialization currently in Tamil Nadu?

Answer:

To begin with, some clusters, especially chemicals, textiles and leather clusters, tend to generate a lot of polluting effluents that affect health. The effluents also pollute water bodies ‘ into which effluents are let into and also adjoining agricultural lands.

Second, employment generation potential has declined because of use of frontier technologies because of the need to compete globally. Quality of employment also has suffered in recent years as most workers are employed only temporarily. This issue too requires urgent attention among policymakers.

Question 8.

What is Meant by Entrepreneur?

Answer:

Entrepreneur is the person one who possess management skills, strong team building abilities and essential leadership qualities to manage a business.

Question 9.

What is Entrepreneurship?

Answer:

Entrepreneurship is a process of an action of an entrepreneur who undertakes to establish his entreprise. It is the ability to create and build something.

VII. Write brief Answer

Question 1.

What are the contributions of industrialization to development?

Answer:

Industries contribute by producing inputs such as fertilizers and tractors to agriculture thereby help them to increase productivity.

Services like Banking, transport and trade are dependent on the production of Industrial goods.

By using modem methods of production Industries contribute to better productivity and hence lower cost of production:

Industries helps to absorb the labour force coming out of agriculture.

By using modem technology, labour productivity increases, which help workers to get higher wages.

Increased income of the people lead to more demand for goods and services.

By producing more Industrial products, exports increases, thereby generate more foreign exchange.

Question 2.

Write a note on history of industrialisation in Tamil Nadu.

Answer:

Industrialisation in the Colonial Period

The introduction of cotton cultivation in western and southern Tamil Nadu by the colonial government led to the emergence of a large-scale textile sector in these parts, which involved ginning, pressing, spinning and weaving operations.

Introduction of railways also expanded the market for cotton yam and helped develop the sector.

There was increase in trade during this period which led to industrial development. The two active ports in the region were Chennai and Tuticorin.

In Western Tamil Nadu, the emergence of textiles industries also led to demand and starting

of textile machinery industry in the region.

Post-Independence to early 1990s:

After independence, several large enterprises were set up by both the central and state governments.

The Integral Coach Factory in Chennai made railway coaches and the Bharat Heavy Electricals Limited (BHEL) in Tiruchirapalli manufactured boilers and turbines.

Ashok Motors and Standard Motors together helped form an automobile cluster in the Chennai region.

The 1970s and 1980s saw the setting up of emergence of power loom weaving clusters in the Coimbatore region as well as expansion of cotton knitwear cluster in Timppur and home furnishings cluster in Kamr.

The Hosur industrial cluster is a successful case of how such policy efforts to promote industrial estates helped develop industries in a backward region.

Industrialization in Tamil Nadu – Liberalization Phase:

The final phase of industrialisation is the post-reforms period since the early 1990s.

Because of trade liberalisation measures, exports of textiles, home furnishings and leather products began to grow rapidly.

Efforts to attract investments led to entry of leading multinational firms (MNCs) into the state, especially in the automobile sector.

Chennai region also emerged as a hub for electronics industry with MNCs such as Nokia, Foxconn, Samsung and Flextronics opening plants on the city’s outskirts.

A significant share of these investments has come up in special economic zones in the districts bordering Chennai.

The major industries are automobiles, autocomponents, light and heavy engineering, machinery, cotton, etc.

This diffused process of industrialisation and corresponding urbanisation has paved the way for better rural-urban linkages in Tamil Nadu than in most other states.

Question 3.

What are the important characteristics of successful industrial clusters? .

Answer:

The following are the chief characteristics of a successful cluster.

Geographical proximity of Small and Medium Enterprises (SMEs)

Sectoral specialisation

Close inter firm collaboration

Inter – firm competition based on innovation

A Socio – Cultural Identity which facilitates trust.

Multi – skilled workforce

Active self – help organisations and

Supportive regional and municipal governments.

Through Competition, they are forced to become more efficient.

Question 4.

Write about the Textile industry cluster in Tamil Nadu?

Answer:

Textile Clusters:

Tamil Nadu is home to the largest textiles sector in the country. Because of the development of cotton textile industry since the colonial period, Coimbatore often referred as the “Manchester of South India”. At present, most of the spinning mills have moved to the smaller towns and villages at a radius over 100 to 150 km around the Coimbatore city. Tamil Nadu is the biggest producer of cotton yam in the country.

Palladam and Somanur, small towns near Coimbatore and the villages near these towns, are home to a dynamic powerloom weaving cluster as well. Powerloom is however more widespread with Erode and Salem region too having a large number of power loom units.

Tiruppur is famous for clustering of a large number of firms producing cotton knitwear. It accounts for nearly 80% of the country’s cotton knitwear exports and generates employment in the range of over three lakh people since the late 1980s. It is also a major producer for the domestic market. Because of its success in the global market, it is seen as one of the most dynamic clusters in the Global South. While initially most firms were run by local entrepreneurs, at present, some of the leading garment exporters in India have set up factories here.

Apart from body building, Karur is a major centre of exports of home furnishings like table cloth, curtains, bed covers and towels. Bhavani and Kumrapalayam are again major centres of production of carpets, both for the domestic and the global markets.

Apart from such modem clusters, there are also traditional artisanal clusters such as Madurai and Kanchipuram that are famous for silk and cotton handloom sarees. Even these clusters have witnessed a degree of modernisation with use of powerlooms in several units.

Question 5.

Write in detail about the types of policies adopted by the Tamil Nadu government to industrialise.

Answer:

The type of policies that are adopted by the Tamil Nadu Government to Industrialise are:- Education, Infrastructure, and Industrial promotion.

(i) Education: Industries require skilled human resources. Therefore, labourers are given technical knowledge apart from basic skills to enrich themselves. Many engineering colleges, polytechnics and Industrial training centres are opened in the country.

(ii) Infrastructure: Excellent infrastructure facilities has contributed to the spread of Industrialisation in smaller towns and villages in the state. Rural electrification, transport and especially minor roads that connect rural parts of the State enabled vast Industrialisation.

(iii) Industrial Promotion: Policies to promote specific sectors like automobile, auto components, bio – technology and information and communication sectors have been formulated to promote Industries of the state.

Question 6.

Explain the role of Entrepreneur?

Answer:

Role of an Entrepreneur:

Entrepreneurs play a most important role in the economic growth and development of a country’s economy.

They promote development of industries and help to remove regional disparities by industrialising rural and backward areas.

They help the country to increase the GDP and Per Capita Income.

They contribute towards the development of society by reducing concentration of income and wealth.

They promote capital formation by mobilising the idle savings of the citizens and country’s export trade.

Entrepreneurs provide large-scale employment to artisans, technically qualified persons and professionals and work in an environment of changing technology and try to maximise profits by innovations.

They enable the people to avail better quality goods at lower prices, which results in the improvement of their standard of living.

VIII. Case studies

Question 1.

Choose a cluster in Tamil Nadu based on online research and write a note on it.

Answer:

An example of a cluster in Tamil Nadu is given below. Students can do online research on their own and write details using this as a sample.

Example case study of a pulp and paper industry in Tamil Nadu.

Tamil Nadu Newprint and papers Limited (http:// www.tnpl.co.in/)

The company: TNPL was formed by the Government of India in 1979 as a public limited company under the provisions of the companies Act of 1956. Objective: The primary objective of the company is to produce newsprint and printing and writing paper using bagasse, a sugarcane residue as the primary raw material.

Assistance: The only paper will in India assisted by the World Bank.

Machinery: The state of art machines were built in flexibility for manufacturing both newsprint and printing and writing papers in the same machine.

Capacity: The latest upgraded capacity enhanced to 2,30,000 tpa in April 2003 through upgradation of the paper machines which is considered as the largest production capacity in India at a single location.

Marketing: The products are being marketed throughout the country and also exported to 20 countries around the world.

Location: The factory is situated at Kagithapuram in Kanir district in Tamil Nadu.

IX. Activity and Project

Question 1.

Write a note on a cluster or a firm near your school/home based on your observations.

Answer:

Here is an sample of a cluster of firm observed in an area is given. This is to help students gain a basic idea about how to undertake this activity. Students can select their location, observe and write findings and do this activity.

Name of the Village: Neikkarapatti, Salem

Industrial cluster: Good quality and high production of Jaggery. The area in around almost all the houses, small or big make it a point to involve themselves in the production of Jaggery.

Type: It is one of the prominent Cottage Industry in the area.

Reason: Most of the farmers in the region cultivate sugarcane and own a jaggery making unit.

Labour: It is a manual jaggery making traditional work, unmindful of the challenges.

Process: The whole process takes about five hours with different names locally as Vellam and Mandai Vellam based on the shape of the mould.

X. Life Skills

Question 1.

Teacher and Students discuss about the entrepreneurs and their activities and Write an a essay in the topic of “If you are like a Entrepreneur”.

Answer:

Note: Students should imagine themselves as entrepreneurs and write an essay on the topic. This is sample essay given as a guideline for the students.

(A stationery shop – business)

Entrepreneurs are business owners. If I am a entrepreneur, first of all, I should start my business in the line of my interest and in part with the demand of the locality and their needs. This would help me to earn profit from it.

I prefer do my entrepreneurial task by staring it at a small level with less financial investment (approx. 10,000) from my uncle who is also an entrepreneur who supports and motivates me.

I purchase my products for sale from the whole saler. The items I purchase are not perishable stationery items. It is easy for me to store it in my house itself. I get bulk orders from nearby shops. Sometimes, latest arrivals of designed erasers, pencil sharpeners will be a attractive one.

As an entrepreneur, I am ready to face risk factors, price hike, less demand, poor quality, seasonal changes and so on. But, I enjoy my work as a businessman and earn profit that gives my career a spark to continue in the same line of business.

Important Questions and Answers

I. Choose the correct answer

Question 1.

The conversion of raw materials into usable materials is called as

(a) Entrepreneur

(b) Industry

(c) Exports

(d) Clusters

Answer:

(b) Industry

Question 2.

Wind energy is a form of …………… energy.

(a) Solar

(b) Petrol

(c) Hydel

Answer:

(a) Solar

Question 3.

SMESare:

(a) Small and Medium Enterprises

(b) Small, Medium, Export Services

(c) Small and Medium Export Services

(d) Salem Metal Export Services.

Answer:

(a) Small and Medium Enterprises

Question 4.

TIDCo is another government agency to establish ………………. estates.

(a) Industrial

(b) tea

(c) Real

Answer:

(a) Industrial

Question 5.

The Namakkal -Tiruchengode belt in Western Tamil Nadu is known for its ………………. building industry.

(a) Textile

(b) Truck body

(c) Coach

(d) Steel

Answer:

(b) Truck body

Question 6.

MEPZ is a special Economic zone in …………….

(a) Chennai

(b) Trichy

(c) Tirunelveli

Answer:

(a) Chennai

Question 7.

TANS! was formed in the year:

(a) 1945

(b) 1955

(c) 1965

(d) 1975

Answer:

(c) 1965

Question 8.

………………. is an innovator of new ideas in business.

(a) Agriculturalist

(b) Entrepreneur

(c) Both (a) and (b)

(d) None

Answer:

(b) Entrepreneur

Question 9.

There are limits to the ability of agriculture to absorb labour due to the ………………. marginal productivity of land.

(a) Increasing

(b) Decreasing

(c) Steady

(d) None

Answer:

(b) Decreasing

Question 10.

Health care and educational services are diffused across major cities of:

(a) Chennai

(b) Coimbatore

(c) Both (a) and (b)

(d) Tiruppur

Answer:

(c) Both (a) and (b)

Question 11.

Nanguneri SEZ is situated at:

(a) Tiruvallur

(b) Vayalur

(c) Thirunelveli

(d) Tambaram

Answer:

(c) Thirunelveli

Question 12.

………………. is intended to provide low – cost financial support for both setting up of new units and for expansion of existing units.

(a) TIDCO

(b) TANSI

(c) TIIC

(d) MEPZ

Answer:

(c) TIIC

Question 13.

When Government decide to encourage manufacturing using raw material from a region. It may lead to emergence of:

(a) Industrial clusters

(b) More taxation

(c) Subsidy

(d) Both (a) and (b)

Answer:

(a) Industrial clusters

Question 14.

The notion of an “Industrial district” was developed by Prof:

(a) Adam Smith

(b) Marshall

(c) Samuelson

(d) Pigou

Answer:

(b) Marshall

Question 15.

Heavy vechicles factory was set up to manufacture tanks in:

(a) Peramber

(b) Avadi

(c) Tiruchy

(d) Vellore

Answer:

(b) Avadi

Question 16.

Dindigul, Vellore and Amber area are famous for products.

(a) Rice

(b) Wheat

(c) Leather

(d) Marine

Answer:

(c) Leather

Question 17.

The Avadi Industrial Estate was set up in the year:

(a) 1950

(b) 1960

(c) 1970

(d) 1980

Answer:

(a) 1950

Question 18.

IT (Information Technology) Specific Special Economic Zones are located in ………………. locations in Tamil Nadu.

(a) 6

(b) 7

(c) 8

(d) 10

Answer:

(c) 8

Question 19.

The agencies that is formed to promote Industrial growth in the state by setting up Industrial estates are:

(a) SIPCOT

(b) TIDCO

(c) TIIC

(d) Both (a) and (b)

Answer:

(d) Both (a) and (b)

Question 20.

Over the last ten years a few software firms have moved from Chennai to:

(a) Madurai

(b) Bangalore

(c) Coimbatore

(d) None

Answer:

(c) Coimbatore

II. Fill in the blanks

Stand up India scheme was launched in India in the year

………….. is the ability to create and built something.

The Industries that produce raw materials for other Industries are called ………….. Industries.

If the output is consumed by another producer then, it is called as ………….. goods.

Geographical proximity of small and medium enterprise is a chief characteristic of a ………….. cluster.

………….. policies have contributed to the decline of the handloom weaving industry.

The Salem steel plant was set up in the year …………..

Home Furnishings cluster is located at …………..

Integral Coach Factory (ICF) makes …………..

MNC means …………..

There are ………….. clusters in 13 districts of Tamil Nadu.

Transportation and poultry clusters are located in …………..

………….. located in Trichy manufactures Boilers and Turbines.

The ………….. district is the top exporter of finished leather goods in the country.

SIPGOT was formed in the year …………..

MEPZ was established in the year to promote foreign direct investment.

A policy was set up in the year ………….. for setting up special Economic zone.

TANSI was formed in the year …………..

The poison control centre is associated with ………….. SEZ.

………….. is the first Industrial cooperation operating in the domain of small enterprises.

There are ………….. export processing zones in the country set up by the Central Government.

………….. schemes provides financial help specifically to SC and ST borrower and woman borrower.

Start up India scheme was launched to generate ………….. and creating …………..

Answers:

5th April 2016

Entrepreneur

Basic goods

capital

successful

Colonial

1973

Karur

Railway coaches

Multi – National Companies

27

Namakkal

BHEL

Vellore

1971

1984

2000

1965

Bio – pharmaceuticals

TANSI

Seven

Standup India

employment, wealth

Samacheer Kalvi 10th Social Science Guide Economics Chapter 5 Industrial Clusters in Tamil Nadu

IV. Choose the correct statement

Question 1.

(i) The development of Industries in India can be studied under colonial phase, post independent phase and liberalisation phase.

(ii) Services sector contributes a major share in employment generation.

(iii) Karur is expertised in bus body building and home furnishing.

(iv) Tamil Nadu is the biggest producer of cotton yarn in the country.

(a) (i), (ii) are correct

(b) (iii), (iv) are correct

(c) (i), (iii), (iv) are correct

(d) all are correct

Answer:

(d) all are correct

Question 2.

(i) Only after the economic reforms in 1990 the state has been the entry of hardware and electronic manufacture centres.

(ii) Bhavani and Kumarapalayan are major centres of production of carpets locally and globally.

(iii) Sivakasi region has now become a major centre for printing and fireworks in the country.

(iv) Dindigul and Erode are major employment generators in Knitwear industry.

(a) (i), (ii) are correct

(b) (i), (ii), (iii) are correct

(c) only (ii) and (iv) correct

(d) All are correct

Answer:

(b) (i), (ii), (iii) are correct

V. Pick out odd one

Question 1.

Which is not a export processing zone?

(a) MEPZ

(b) SEZ

(c) TIDCO

(d) ELCOT

Answer:

(c) TIDCO

Question 2.

Tamil Nadu’s Textile clusters does not include

(a) Coimbatore

(b) Padalam

(c) Somanur

(d) Dindigul

Answer:

(d) Dindigul

Question 3.

Which of the following is not under IT cluster?

(a) Nokia

(b) Foxconn

(c) Infosys

(d) MEPZ

Answer:

(d) MEPZ

VI. Write Short Answer

Question 1.

What is the industry?

Answer:

“Any human activity which is engaged in the conversion of raw materials into readily usable materials is called an industry”.

Question 2.

Why is small scale sectors considered important?

Answer:

The small scale sector is seen as important for two reasons.

To generate more employment than the large – scale sector.

The small scale sectors allows for a larger number of entrepreneurs to emerge from less privileged groups.

Question 3.

What is MEPZ?

Answer:

MEPZ is a special Economic Zone in Chennai and it is one of the seven export processing zones in the country set up by the central government. It was established in 1984. The MPEZ head-quarters is located on GST Road in Tambaram, Chennai.

Question 4.

Write the names of MNCs in Chennai region.

Answer:

MNCs such as Nokia, Foxconn, Samsung and Flextronics.

Question 5.

Write about Bus Body Building Industry clusters.

Answer:

The Namakkal-Tiruchengode belt in western Tamil Nadu is known for its truck body building industry. About 150 of the 250 units in this sector are located in this cluster including 12 large-sized body building houses. Karur is another major hub with more than 50 units. Many entrepreneurs were previous employees in a big firm involved in body building who came out . to set up their own units.

Question 6.

List down the names of the agencies that have played an important role in the Industrialisation of a state.

Answer:

SIPCOT – State Industries Promotion Corporation of Tamil Nadu.

TANSIDCO – Tamil Nadu Small Industries Development Corporation.

TIDCO – Tamil Nadu Industrial Development Corporation

TIIC – Tamil Nadu Industrial Investment Corporation Limited.

TANSI – Tamil Nadu Small Industries Corporation Limited.

Question 7.

What is meant by SEZ?

Answer:

SEZ means Special Economic Zone in the country with a view to improve free environment for exports.

Question 8.

What do you understand by Stand up India Scheme?

Answer:

It is a scheme launched by the Indian Government with the primary objective of generation employment and wealth creation.

Question 9.

What do you understand by standup India scheme?

Answer:

It is a scheme launched by the Indian Government to facilitate bank loans between ₹ 10 lakh and ₹ 1 crore to atleast one scheduled caste (or) scheduled Tribe borrower and one woman borrower per bank branch for setting up a greenfield enterprise.

Question 10.

How do entrepreneurs promote formation?

Answer:

Entrepreneurs promote capital formation by mobilising the idle savings of the citizens and increasing country’s exports.

VII. Write Brief Answer

Question 1.

Write in detail about the types of industries on the basis of its use, raw ‘ material, ownership, and size.

Answer:

Types of Industries:

On the basis of

Uses:

Consumer goods Industries ⇒ output to the final consumer

Capital goods Industries ⇒ output consumed by another producer.

Basic goods Industries ⇒ output as the raw material for other Industries.

Raw material:

Agricultural sector

Industrial sector

Agro based sector

Leather Industries

Ownership:

Public owned ⇒ Government owned

Private owned ⇒ Private owned Co-operative owned

Size:

Large scale Industries

Small scale Industries

Medium scale Industries

Micro (or) tiny

Question 2.

Name some industrial development agencies and explain them.

Answer:

The following are some agencies that have played a key role in industrialization in the state. SIPCOT: (State Industries Promotion Corporation of Tamil Nadu), 1971 It was formed in the year 1971 to promote industrial growth in the state by setting up industrial estates.

TANSIDCO: (Tamil Nadu Small Industries Development corporation), 1970

TANSIDCO is a state-agency of the state of TN established in the year 1970 to promote small- scale industries in the state. It gives subsidies and provide technical assistance for new firms in the small scale sector.

TIDCO (Tamil Nadu Industrial Development Corporation), 1965:

TIDCO is another government agency to promote industries in the state and to establish industrial estates.

TIIC (Tamil Nadu Industrial Investment Corporation Ltd.), 1949:

TIIC is intended to provide low-cost financial support for both setting up new units and also for expansion of existing units. Though it is meant to meet the requirements of all types of firms, 90% of support goes to micro, small and medium enterprises.

TANSI (Tamil Nadu Small Industries Corporation Ltd.), 1965:

TANSI was formed in 1965 to take over the small scale-units that were set up and run by the Department of Industries and Commerce. It is supposed to be the first industrial corporation operating in the domain for small enterprises.


Tamilnadu, board, ssc, samacheer kalvi, economics, Chapter 4, Food Security and Nutrition,

I. Choose the correct answer

Question 1.

The three levels of governments in India are:

(a) Union, State and local

(b) Central, State and village

(c) Union, Municipality and Panchayat

(d) None of the above

Answer:

(a) Union, State and local

Question 2.

In India, taxes are including ……………..

(a) Direct taxes

(b) Indirect taxes

(c) Both (a) and (b)

(d) None of these

Answer:

(c) Both (a) and (b)

Which is the role of government and development policies?

(a) Defence

(b) Foreign policy

(c) Regulate the economy

(d) all of above

Answer:

(d) all of above

Question 4.

The most common and important tax levied on an individual in India is ……………..

(a) Service tax

(b) Excise duty

(c) Income tax

(d) Central sales tax

Answer:

(c) Income tax

Question 5.

Under which tax one nation, one uniform tax is ensured:

(a) Value added tax (VAT)

(b) Income tax

(c) Goods and service tax

(d) Sales tax

Answer:

(c) Goods and service tax

Question 6.

Income tax was introduced in india for the first time in the year ……………

(a) 1860

(b) 1870

(c) 1880

(d) 1850

Answer:

(a) 1860

Question 7.

…………………….. tax is charged on the benefits derived from property ownership.

(a) Income tax

(b) Wealth tax

(c) Corporate tax

(d) Excise duty

Answer:

(b) Wealth tax

Question 8.

What are identified as causes of black money?

(a) Shortage of goods

(b) High tax rate

(c) Smuggling

(d) All of above

Answer:

(d) All of above

Question 9.

Tax evasion is the illegal evasion of taxes by:

(a) Individuals

(b) Corporations

(c) Trusts

(d) All of the above

Answer:

(d) All of the above

Question 10.

Payments are ………….

(a) Fees and fines

(b) Penalties and forfeitures

(c) None of the above

(d) a and b

II. Fill in the blanks

…………………. is levied by Government for the development of the state’s economy.

The origin of the word ‘tax’ is from the word ………………….

The burden of the …………………. tax cannot be shifted to others.

tax is levied on companies that exist as separate entities from their shareholders.

The Goods and Service Tax act came into effect on ………………….

The unaccounted money that is concealed from the tax administrator is called ………………….

Answers:

III. Choose the correct statement

Question 1.

Which of the following statement is correct about GST?

(i) GST is the ‘one point tax’.

(ii) This aims to replace all direct taxes levied on goods and services by the Central and State Governments.

(iii) It will be implemented from 1 July 2017 throughout the country.

(iv) It will unified the tax structure in India.

(a) (i) and (ii) are correct

(b) (ii), (iii) and (iv) are correct

(c) (i), (iii) and (iv) are correct

(d) All are correct

Answer:

(d) All are correct

Question 2.

Choose the incorrect statements.

(i) Shortage of goods, whether natural or artificial, is the root cause of black money.

(ii) Industrial sector has been the major contributor to black money.

(iii) Smuggling is one of the major sources of black money.

(iv) When the tax rate is low, more black money is generated.

(a) (i) and (ii)

(b) (iv)

(c) (i)

(d) (ii) and (iii)

Answer:

(b) (iv)

IV. Match the following

Answer:

A. (iv)

B. (v)

C. (i)

D. (ii)

E. (iii)

V. Give Short Answers

Question 1.

Define tax.

Answer:

Tax is levied by the government for the development of the state’s economy. The revenue of the government depends on direct and indirect taxes.

Question 2.

Why we pay tax to the government?

Answer:

We pay tax to the Government because the country have to carryout many functions like building infrastructure like transportation, sanitation, public , safety, education, healthcare, military, public works etc.,

Question 3.

Write the canons of tax system?

Answer:

Every type of tax has some advantages and some disadvantages. So we have a tax system, that is, a collection of variety of taxes. All countries use a variety of taxes. There are some characteristics of tax system that economists think should be followed while designing a tax system. These characteristics are called as canons of taxation.

Question 4.

What are the types of tax? Give examples.

Answer:

Direct taxes – Eg: Income tax, wealth tax and corporation tax.

Indirect taxes – Eg: Stamp duty, Entertainment tax and Excise duty, Goods and services tax.

Question 5.

Write short note on Goods and Service Tax.

Answer:

Goods and Service Tax is defined as the tax levied when a consumer buys a good or service. That aims to replace all indirect taxes levied on goods and services by the Central and state governments. GST would eliminative the cascading effect of taxes on the production and distribution of goods and services. It is also a “one-point tax” unlike value-added tax (VAT), which was a multipoint tax.

Question 6.

What is progressive tax?

Answer:

Progressive tax is the tax in which the rate of taxation increases as the tax base increases. When income increases, the tax rate also increases. This is known as a progressive tax.

Question 7.

What is meant by black money?

Answer:

Black money is funds earned on the black market on which income and other taxes have not been paid. The unaccounted money that is concealed from the tax administrator is called black money.

Question 8.

What is tax evasion?

Answer:

The illegal non – payment of taxes is generally called as tax evasion, either by individuals corporations and trusts.

Question 9.

Write some causes of tax evasion.

Answer:

Tax evasion resulting in black money prevents the resource mobilisation efforts of the Union government. Shortage of funds distorts the implementation of developmental plans and forces the government to resort to deficit financing in case public expenditure is inelastic.

Tax evasion interferes with the declared economic policies of the government by distorting saving and investment patterns and availability of resources for various sectors of the economy.

Question 10.

What is the difference between tax and payments?

Answer:

Tax is a compulsory payment whereas payment is voluntary. Payment for getting any service gives direct benefits whereas payments for tax will not give any direct benefit.

VI. Brief Answer

Question 1.

Briefly explain the role of government in development policies.

Answer:

In India, there are three levels of Governments. They are Union Government, State Government and Local Government. They carryout functions for the benefit of people and society. The role of Government can be studied under the following heads.

(i) Defence: To create and maintain defence forces in the country as an essential security function to protect our country from enemies. (Army, Navy and Air Force)

(ii) Foreign policy: India is committed to world peace. We maintain friendly economic relationship to all the countries of the world.

(iii) Conduct of periodic elections: India is a democratic country. We elect our representatives to parliament and State Assemblies.

(iv) Law and order: To settle disputes, the Union Government consists of strong judicial system with court at the National, State and Lower levels. The State Governments takes responsibility to maintain law and order with responsibility from police department.

(v) Public administration and provision of public goods: The public administration is done by the Government with the help of departments for revenue, health, education, rural development etc. Also, it provides public goods like rural roads, drainage, drinking water etc.

(vi) Redistribution of Income and Abolision of poverty: The Government spends money in such a way that the poorer are given basic necessities of life like food, clothing, shelter, education, health care, etc. Thereby the redistribution of income should eradicate poverty in the country.

(vii) Regulate the Economy: The Central Government with the help of the Reserve Bank of India, controls supply of money in the economy and the Interest rate, inflation and foreign exchange. The various agencies like securities Exchange Board of India and competition commission if India are also a tool for the Government to control the economy.

Question 2.

Explain some direct and indirect taxes.

Answer:

Types of Taxes:

Direct Taxes: A tax imposed on an individual or organisation, which is paid directly, is a direct tax. The burden of a direct tax cannot be shifted to others. J.S. Mill defines a direct tax as “one which is demanded from the very persons who it is intended or desired should pay it.” Some direct taxes are income tax, wealth tax and corporation tax.

Income tax: Income tax is the most common and most important tax levied on an individual in India. It is charged directly based on the income of a person. The rate at which it is charged varies, depending on the level of income.

Corporate tax: This tax is levied on companies that exist as separate entities fronl their shareholders. It is charged on royalties, interest gains from sale of capital assets located in India and fees for a technical services and dividends. Foreign companies are taxed on income that arises or is deemed to arise in India.

Wealth tax: Wealth tax is charged on the benefits derived from property ownership. The same property will be taxed every year on its current market value. The tax is levied on the individuals and companies alike.

Indirect Taxes: If the burden of the tax can be shifted to others, it is an indirect tax. The impact is on one person while the incidence is on the another person. Therefore, in the case of indirect taxes, the tax payer is not the tax bearer. Some indirect taxes are stamp duty, entertainment tax, excise duty and goods and service tax (GST).

Stamp duty: Stamp duty is a tax that is paid on official documents like marriage registration or documents related to a property and in some contractual agreements.

Entertainment tax: Entertainment tax is a duty that is charged by the government on any source of entertainment provided. This tax can be charged on movie tickets, tickets to amusement parks, exhibitions and even sports events.

Excise duty: An excise tax is any duty on manufactured goods levied at the movement of manufacture, rather than at sale. Excise is typically imposed in addition to an indirect tax such as a sales tax.

Question 3.

Write the structure of GST.

Answer:

Structure of GST

SGST (State Goods and Services Tax):

Levied Intra-state (or) within the state

Eg:

VAT / sales tax, purchase tax

Entertainment tax, luxury tax

Lottery tax

State surcharges and cesses.

Payable to state Government.

CGST (Central Goods and Service Tax):

Levied Intra state (or) within the state.

Eg:

Central Excise Duty, services tax

Customs duty, surcharges

Education and sec. Hr. sec. cess.

Payable to Central Government.

IGST (Integrated Goods and Services Tax)

Levied Inter State (or) between States.

Payable to Central Government.

Four major GST rates are

5%, 12%, 18%, 28%

Question 4.

What is black money? Write the causes of black money.

Answer:

Black Money

Black money is funds earned on the black market on which income and other taxes have not been paid. The unaccounted money that is concealed from the tax administrator is called black money.

Causes of Black Money:

Shortage of goods: Shortage of goods, whether natural or artificial, is the root cause of black money. Controls are often introduced to check black money.

Licensing proceeding: It is firmly believed that the system of controls permits, quotes and licences are associated with maldistribution of commodities in short supply, which results in the generation of black money.

Contribution of the industrial sector: Industrial sector has been the major contributor to black money. For example, the Controller of Public Limited Companies tries to buy commodities at low prices and get them billed at high amounts and pockets the difference personally.

Smuggling: Smuggling is one of the major sources of black money. When India had rigid system of exchange controls, precious metals like gold and silver, textiles and electronics goods were levied a heavy excise duty. Bringing these goods by evading the authorities is smuggling.

Tax structure: When the tax rate is high, more black money is generated.

Question 5.

Explain the role of taxation in economic development.

Answer:

Resources Mobilisation:

The Government is able to mobilise resources and earn revenue from tax.

They utilise this revenue for the welfare of the people.

Reduction in Inequalities of Income:

Taxation follows the principal of equity.

When the nature of taxes are progressive that is when income increases, the tax rate also increases. .

So, poor will not be taxed much when their income is less.

Social welfare: Higher taxes are levied on undesirable products like alcoholic products thereby promoting social welfare.

Foreign Exchange: Taxation encourages exports and restricts imports. When there is no tax on export items, country earn more foreign exchange. Regional development: Generally, when industries are set up in backward regions, to motivate such business firms, tax incentives (or) tax hoildays are given to encourage development.

Control of Inflation: Through Taxation Government can control inflation of reducing the tax on the commodities.

VII. Activity and Projects

Question 1.

Collect information about the local taxes (water, electricity and house tax etc).

Water Tax: (with respect to the city Chennai)

Answer:

The rate of water tax is fixed at the 1.5% of the assessed annual value.

The administration is related to water tax in the city of Chennai is vested with (CMWS and SB) Chennai Metro Water Supply and Sewage Board.

Water tax is levied on private individuals and businesses on tap water.

Payment for water tax can be done online receipts will be generated within 24 hours of payment.

The time line of payment will be specified in the demand notice.

Failing to make the payment even after demanding legal proceedings added with fine and other charges are made.

Electricity Tax:

Electricity tax is an excise duty that is charged on the supplies of electricity made on or after 1st October 2008.

The tax is charged on the final supply of electricity to the consumer.

The liability of payments arises at the time the electricity is supplied.

The tax at a rate of 5% of the consumption charges.

House Tax / Property Tax:

A property tax or a house tax is a tax on the value of a property like house, office building etc.

This tax is levied by the governing authority of the area in.which the property is located.

Samacheer Kalvi 10th Social Science Guide Economics Chapter 4 Government and Taxes

Question 2.

Students purchase some goods on the shop. The teacher and students discuss those goods, maximum retail price, purchasing price or GST.

Answer:

Question 3.

Students are asked to search a Income Tax website and know the Income Tax Slab for current year.

Answer:

Website: www.apnaplan.com

New Income Tax Slabs and rates for financial year 2019-20

Important Questions and Answers

I. Choose the correct answer

Question 1.

The Government mobilises its …………………. resources by levying taxes.

(a) financial

(b) physical

(c) material

(d) all the above

Answer:

(a) financial

Question 2.

……………. tax is levied on companies that exist as seperate entities from their shareholders.

(a) direct

(b) Income

(c) Corporate

Answer:

(c) Corporate

Question 3.

Tax system should be designed in such a way that the people automatically pay more tax revenue with increase in income :

(a) Canon of equity

(b) Canon of elasticity

(c) Canon of certainty

(d) Canon of Economy

Answer:

(b) Canon of elasticity

Question 4.

In India almost all the direct taxes are collected by the ……………..

(a) Union Government

(b) State Government

(c) local bodies

Answer:

(a) Union Government

Question 5.

Energy, water and waste management systems are common public :

(a) utilities

(b) properties

(c) systems

(d) all of these

Answer:

(d) all of these

Question 6.

……………… has been the major contributor to black money.

(a) Agriculture sector

(b) Industrial sector

(c) Tax sectors

Answer:

(b) Industrial sector

Question 7.

An …………………. tax is a duty on manufactured goods levied at the movement of manufacture.

(a) Sales

(b) Excise

(c) Stamp duty

(d) Entertainment

Answer:

(b) Excise

Question 8.

The major Indirect taxes in India are …………………. and GST.

(a) Customs duty

(b) Sales tax

(c) Excise duty

(d) Stamp duty

Answer:

(a) Customs duty

Question 9.

The structure of GST in India consists of …………………. forms.

(a) 3

(b) 4

(c) 2

(d) 5

Answer:

(a) 3

Question 10.

Sales tax is an example of …………………. taxation.

(a) Progressive

(b) Proportional

(c) Regressive

(d) Degressive

Answer:

(c) Regressive

II. Fill in the blanks

India is committed to …………………..

The origin of the word tax is from taxation which means …………………..

The symbol PIB means …………………..

Goods and services tax is one of the …………………..

………………….. was the first country to implement GST.

………………….. was a multi-point tax.

France introduced GST in the year …………………..

Indian tax system adheres to Canon of ………………….. more than anything else.

The ticket to amusement park is an example for ………………….. tax.

SIT means …………………..

………………….. is the payment for getting any service.

Taxation follows the principal of …………………..

Answer:

III. Choose the correct statement

Question 1.

(i) Black money refers to the unaccounted money.

(ii) Taxation should be used as an instrument for controlling inflation.

(iii) Tax payer does not expect any direct benefit from direct taxes.

(iv) Unreporting income is a form of tax evasion.

(a) (i), (ii) are correct

(b) (ii), (iii), (iv) are correct

(c) (i), (iii), (iv) are correct

(d) All are correct.

Answer:

(d) All are correct.

Question 2.

(i) Foreign Account Tax Compliance Act is a recent legislation to curb black money in India.

(ii) Tax evasion is the illegal way of evading taxes by individuals only.

(iii) Overstating deductions is a form of generating black money.

(iv) Tax evasion penalties can be harsh depending on the severity of the crime.

(a) (i), (ii) are correct

(b) (ii), (iii), (iv) are correct

(c) (i), (iv) are correct

(d) All are correct

Answer:

(c) (i), (iv) are correct

Question 3.

(i) Tax evasion undermines the equity attribute of the tax system.

(ii) Each Canons of taxation has its own unique characteristics.

(iii) GST is a form of direct tax.

(iv) GST came into force from 8th Nov – 2018.

(a) (i), (ii), (iii) are correct

(b) (i), (ii) are correct

(c) (ii), (iv) are correct

(d) only (iv) is correct

Answer:

(b) (i), (ii) are correct

IV. Match the following

Question 1.

Match the Column I with Column II

Answer:

A. (iii)

B. (v)

C. (i)

D. (ii)

E. (iv)

Question 2.

Match the Column I with Column II.

Answer:

A. (v)

B. (iii)

C. (i)

D. (ii)

E. (iv)

V. Give Short Answers

Question 1.

Write a note on Law and Order:

Answer:

Both the Union and state governments enact numerous laws to protect our rights, properties and to regulate our economy and society. To settle disputes, the Union government has a vibrant judicial system consisting of courts at the national state and lower levels and the state government take the responsibility for administrating the police force in respective states.

Question 2.

What are the types of taxes?

Answer:

Taxes are of two types

Direct taxes

Indirect taxes

Direct taxes are levied on the income of the persons and the indirect taxes are levied on goods and services.

Question 3.

What is wealth tax?

Answer:

It is charged on the benefits derived from property ownership. The same property will be taxed every year on its current market value. The tax is levied on the individuals and companies alike.

Question 4.

What are the forms of tax evasion?

Answer:

The tax evasion activities include:

Under reporting income

Inflating deductions (or) expenses

Hiding money

Hiding interest in off-shore accounts

Dishonest tax reporting

Overstating deductions.

Question 5.

Write a short note on Excise duty.

Answer:

An excise tax is any duty on manufactured goods levied at the movements of manufacture, rather than at sale. Excise is typically imposed in addition to an indirect tax such as a sales tax.

Question 6.

State the reason”ln the case of Indirect taxes, the taxpayer is not the tax bearer why?

Answer:

In the case of Indirect taxes, the tax can be shifted to the others. That is the impact is on one person while the incidence is on the other person. Therefore, in the case of indirect taxes, the tax payer is not the tax bearer.

Question 7.

What is the main purpose of taxation?

Answer:

The main purpose of taxation is to accumulate funds for the functioning of the Government.

Question 8.

How are taxes levied in India?

Answer:

Taxes is levied in three ways

Progressive taxation

Proportionate taxation

Regressive taxation

Question 9.

Which Canon of tax system does Indian tax system adhere to?

Answer:

Indian tax system adheres to Canon of Certainty Government of India announce in advance the tax system so that every tax payer is able to calculate how much tax they have to pay.

Question 10.

When was the system of income tax introduced in India? and why?

Answer:

Income tax was introduced for the first time in India by Sir James Wilson in 1860 to meet the losses for the Government because of the sepoy mutiny of 1857.

Question 11.

What is meant by canon of equity?

Answer:

The canon of equity states that the rich should pay more tax revenue to the Government than the poor, thereby we can eliminate economic differences between them.

Question 12.

What is canon of certainty?

Answer:

The canon of certainty states that the Government should announce the tax system in advance and should not change it frequently.

Question 13.

What is canon of convenience?

Answer:

Tax should be collected from a person at the time he gets enough money to pay the tax. This is called canon of convenience.

Question 14.

What is canon of Economy?

Answer:

As tax payers, people may incur cost to process their accounts, In the same way, the Government also pay salary to its taxmen to run institution. The expenditure on all this should be economised or minimised.

Question 15.

What is canon of productivity?

Answer:

When the Government levies tax that can fetch more tax revenue to them then, it is called canon of productivity.

Question 16.

What is canon of Elasticity?

Answer:

The tax system should be designed in such a way that people automatically pay more tax revenue if their income grow. This is called canon of elasticity.

VI. Brief Answer

Question 1.

Write about the different canons of taxation.

Answer:

(i) Canon of Equity:

Since tax is a compulsory payment, all economists agree that equity is the cardinal principle in designing the tax system. The equity principal says that the rich should pay more tax revenue to government than the poor, because rich has more ability than the poor to pay the tax.

(ii) Canon of certainty:

Government should announce in advance the tax system so that every tax payer will be able to calculate how much tax amount one may have to pay during a year to the government.

(iii) Canons of Economy and Convenience:

These two canons are related. As tax payers we incur a cost to process our accounts and pay the tax, for example, salary paid to accountants and auditors.

Similarly government also pays salary to its taxmen and run huge institutions. If the tax is simple, then the cost of collecting taxes (tax payer cost + tax collector cost) will be very low.

Further, tax should be collected from a person at the time he gets enough money to pay the ‘ tax. This is called canon of convenience. A convenient tax reduces the cost of collecting tax.

(iv) Canons of Productivity and Elasticity:

Government should choose the taxes that can get enough tax revenue to it. Tax is paid by the people out their incomes. Therefore the tax system should be designed in such a way that the people automatically pay more tax revenue if their incomes grow. This is called canon of elasticity.

Question 2.

What are the penalties for a tax evader?

Answer:

If a person evade tax, he may be imprisoned upto to five years and had to pay a huge amount as fine.

The tax evader may also be ordered to pay for the costs of prosecution.

Other tax evasion penalties include community service, probation and restitution depending on the circumstances of the case.

If the crime of tax evader is very severe, the penalty can be harsh also.

Question 3.

What are the main differences between tax and other payments.

Answer:

Tax:

It is a compulsory payment to the Government.

Tax payer cannot expect direct benefit after paying taxes.

Tax payer has to pay the tax once it is imposed. Otherwise he/she will be penalised.

The purpose of levying tax is general. Money is used for the welfare of the people.

Eg: Income tax, gift box, wealth tax etc.,

Payments:

It is voluntary payment for getting any service.

Once payment is done, the person can expert direct benefit from it.

Payment need not be paid if the service is not necessary for a person.

The purpose of making payments is to enjoy certain special benefits.

Eg: Driving license, stamp fee, fee for Government Registration etc.,

Question 4.

What are the recent legislative measures to curb black money in India.

Answer:

SIT – Special Investigation Team on black money under Chairman and (Vice – Chairman of two former judges of the Supreme Court.)

The black money (undisclosed Foreign Income and Assets) and Imposition of,tax Act – 2015.

MAG – Constitution of Multi Agency Group.

DTAAS – Double Taxation Avoidance Agreement.

FATCA – Foreign Account Tax Compliance Act.

Money Laundering Act.

Enactment of the Benami Transaction Amendment Act.

Launching of Operation clean money.

Lokpal and Lokayukta Act.

The Real Estate Regulation and Development Act of 2016.

Question 5.

How are taxes leevied in India.

Answer:

Taxes is levied by the Government progressively, proportionately as well as Regressively.

Progressive Tax: Progressive Tax rate is one in which the rate of taxation increase as the tax base increases. When income increases, the tax rate also increases. This is known as a progressive tax.

Proportional Tax: Tax levied on goods and services in fixed portion is known as proportionate taxes. Tax amount varies in the same proportion to that of Income.

Regressive Tax: It implies that higher the rate of tax, lower the income groups than in the case of higher income groups.

That is, tax is levied uniformly at a flat percentage regardless who the purchaser or owner Eg: Sales Tax, Property Tax.

Question 6.

As per the Interim budget for the financial year 2019 – 20, State the areas from where money / rupee is earned and spend hy Government of India (GOI).

Answer:

Earning money through:

Income Tax, Corporation tax

Customs

Union excise duties

GST

Borrowing and other liabilities

Non – dept capital assets

Non – Tax Revenues

Money goes to:

Interest payments

Central sector schemes

Centrally sponsored scheme

Pension and other expenditure

State share of duties and taxes

Defence

Subsidies

Finance commission and

Other transfers.


Tamilnadu, board, ssc, samacheer kalvi, economics, Chapter 3, Food Security and Nutrition,

I. Choose the correct answer

Question 1.

……………….. of food is physical availability of food stocks in desired quantities, which is a function of domestic production, changes in stocks and imports.

(a) Availability of food

(b) Access to food

(c) Absorption of food

(d) None

Answer:

(a) Availability of food

Question 2.

Buffer stock is the stock of food grains, namely wheat and rice, procured by the government through the ……………

(a) FCI

(b) Consumer Cooperatives

(c) ICICI

(d) IFCI

Answer:

(a) FCI

Question 3.

Which is correct?

(i) HYV-High Yielding Varieties

(ii) MSP-Minimum Support Price

(iii) PDS-Public Distribution System

(iv) FGi-Food Corporation of India

(a) (i) and (ii) are correct

(b) (iii) and (iv) are correct

(c) (ii) and (iii) are correct

(d) all are correct

Answer:

(d) all are correct

Question 4.

…………… extended assistance through its Public Law 480.

(a) United States of America

(b) India

(c) Singapore

(d) UK

Answer:

(a) United States of America

Question 5.

……………….. revolution was born in India paving way for self sufficiency in food grain production.

(a) Blue Revolution

(b) White Revolution

(c) Green Revolution

(d) Grey Revolution

Answer:

(c) Green Revolution

Question 6.

………….. is the only state in India to adopt universal PDS.

(a) Kerala

(b) Andhra Pradesh

(c) Tamil Nadu

(d) Karnataka

Answer:

(c) Tamil Nadu

Question 7.

……………….. is the process of providing or obtaining the food necessary for health and growth.

(a) Health

(b) Nutrition

(c) Sanitation

(d) Security

Answer:

(b) Nutrition

Question 8.

Tamil Nadu Integrated Nutrition Programme was started in …………..

(a) 1980

(b) 1975

(c) 1955

(d) 1985

Answer:

(a) 1980

Question 9.

……………….. status is one of the indicators of the overall well-being of population and human resources development.

(a) Health

(b) Nutritional

(c) Economic

(d) Wealth

Answer:

(a) Health

Question 10.

Tamil Nadu Health System Projects has launched ……….. service at free of cost.

(a) 106 ambulance

(b) 108 ambulance

(c) 107 ambulance

(d) 105 ambulance

Answer:

(b) 108 ambulance

II. Fill in the blanks

……………… foundation from USA introduced HYV in India.

……………… is an important indicator of nutrition deficiency.

In the year ……………… National Food Security Act was passed by the Indian Parliament.

……………… play an important role in the supply of quality goods at reasonable rates to common people.

……………… is the value of currency expressed in terms of the amount of goods and services that one unit of money can buy.

Answers:

III. Match the following

Answer:

A. (iv)

B. (i)

C. (v)

D. (ii)

E. (iii)

IV. Assertion and Reason

Question 1.

Assertion (A): Purchasing power increases, price decreases and vice versa.

Reason (R): The production of goods decline, the price of goods increases and then the purchasing power is affected.

(a) A is correct, R is false

(b) Both A and R are false statements

(c) A is correct but R is not a correct explanation

(d) A is correct, R is the correct explanation of A

Answer:

(d) A is correct, R is the correct explanation of A

V. Answer in Short

Question 1.

Define food security according to FAO.

Answer:

The United Nation’s Food and Agriculture Organisation defines food security as follows:

“Food security exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life.” (FAO, 2009)

Question 2.

what are the basic components of food and nutrition security?

Answer:

The hasic components of food and nutrition security are

Availability of food

Access to food

Absorption of food

Question 3.

Explain ‘ship to mouth’ phenomenon.

Answer:

United States of America extended assistance through its Public Law 480 (PL 480) scheme to India during early 1960s. This situation was popularly known as ‘Ship to Mouth’ existence.

Question 4.

What is the role of FCl in Green Revolution?

Answer:

The Food Corporation of India helped the State to procure the harvested grains at the beginning of the cropping season. The FCI built huge storage godowns and built buffer stocks of food grain during the harvest season to be distributed throughout the year.

Question 5.

What are the effects of Green Revolution?

Answer:

It increase the production and cultivation

It increase the productivity

Changes in cropping system

Industrial development

Question 6.

Write a note on Differential Universal PDS and Targeted PDS.

Answer:

Under Universal Public Distribution System all the family ration card holders are entitled to the supplies from PDS.

Under Targeted PDS, the beneficiaries are identified based on certain criteria and given their entitlements, leaving the others.

Tamil Nadu is following Universal PDS.

Question 7.

Write a short note on purchasing power.

Answer:

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Price increases purchasing power declines and vice versa.

Question 8.

What are the main reasons for the New Agricultural Policy?

Answer:

To raise agricultural production and productivity.

To remove export restrictions such as export duty, export ban and quota restriction on organic and processed agricultural products.

All round development of the agriculture sector.

Question 9.

Write short note on multi-dimensional nature of poverty.

Answer:

Multi-dimensional poverty measures can be used to create a more comprehensive picture. They reveal who is poor, how they are poor and the range of disadvantages they experience. As well as providing a headline measure of poverty, multi-dimensional measures can be broken down to reveal the poverty level in different areas of a country, and among different subgroups of people.

Question 10.

Write some name of the nutrition programmes in Tamil Nadu.

Answer:

Integrated Child Development Services (ICDS), Mid-Day Meals Scheme, Reproductive and child Health Programmes (RHP) and National Rural Health Mission (NRHM) Puratchi Thalaivar MGR Nutritious Meal Programme (PTMGRNMP), Mid day meal programme.

VI. Answer in detail

Question 1.

Elucidate why the Green Revolution was born.

Answer:

For a country’s overall development process food security of people is one of the key determining factor.

After independence, even though India focused on Agriculture, industrialization was also given priority.

But the problem of drought experienced in India forced her to be dependent on imports of food grains.

Therefore India had to plead for food grains from richer countries at concessional rates.

United states of America extended assistance through its Public Law 480 to India. This situation was popularly known as ship to mouth existence.

An American Organisation Ford Foundation formulated a plan to increase food production in the country by introducing High Yielding varieties of wheat and rice.

When the results was very good in India, the idea of Green Revolution also bom in India.

Question 2.

Explain Minimum Support Price.

Answer:

Minimum Support Price is a price fixed by an expert group for a particular crop by considering various costs involved in the cultivation of that crop. After announcing the MSP, the State will open procurement centres in places where these crops are widely grown. However, the farmers are free to sell in the open market if they get a better price for their crop produce. On the other hand, if the open market price is lower than the MSP, the farmers would get an assured price (the MSP) by selling their produce to the FCI. Thus, with the implementation of MSP farmers are certain about the price they would get at the end of the crop season. Further, farmers also get insulated against any price crash during the harvest season.

Question 3.

Elaborate the Public Distribution System.

Answer:

Public Distribution system refers to the Ration Shops.

The step taken by the Government to distribute food grains at subsidised rates is through this Public Distribution System.

The nature, scope and functioning of PDS varies from State to State.

There are two types of Public Distribution System.

They are universal PDS and Targeted PDS.

Under universal PDS, all the family ration card holders are entitled to the supplies from PDS.

In the targeted PDS, the beneficiaries are identified based on certain criteria, leaving others.

Tamil Nadu continues to have the universal system of PDS and supplies rice at free of cost to all card holders.

Both the Union and the State Governments subsidised the supplies distributed through PDS.

The National Food Security Act was passed by the Indian Parliament in 2013.

According to this Act 50% of urban households and 75% of the rural households are known as priority households based on a set of criteria.

They are supplied rice at ₹3 per kg, and wheat at ₹2 per kg, and millets at ₹1 per kg.

The Government of Tamil Nadu has declared that SMART family cards in lieu of existing family cards.

Question 4.

What are the factors affecting the purchasing power and explain them.

Answer:

• Over population: The population growth rate in India is high as 1.7 per 1000. Large population leads to increasing demand, but supply was not equal to the demand. So, the normal price level will be going an higher. So it affect purchasing power, especially in rural population.

• Increasing prices of essential goods: Even though there has been a constant growth in the GDP and growth opportunities in the Indian economy, there have been steady increase in the prices of essential goods. The continuous rise in the prices erodes the purchasing power and adversely affect the poor people. During 2015-16 an average rate of 2% flood inflation, the prices of pulses rose by about 40%.

• Demand for goods: When demand for goods increases, the price of goods increases then the purchasing power is affected.

• Price of goods affect the value of currency: When the price increases the purchasing power decreases and finally the value of currency decreases and vice versa.

• Production and supply of goods: The production and supply of goods decline, the price of goods increases, then the purchasing power is affected.

• Poverty and inequality: There exists a huge economic disparity in the Indian economy. The proportion of income and assets owned by the top 10% of Indian goes on increasing. This has led to an increase in the poverty level in society. Generally purchasing power is affected by poverty and unequal distribution of wealth also.

Purchasing power affects every aspect of economics, from consumers buying goods to investors and stock prices to a country’s economic prosperity. As such, a country’s government institutes policies and regulations to protect a currency’s purchasing power and keep an economy healthy. One method to monitor purchasing power is through the Consumer Price Index.

Question 5.

Write briefly some of the important objectives of India’s agricultural policy.

Answer:

The New Agricultural Policy was announced by the Government of India in 2018. The main objectives of the policy are:

Raising the productivity of inputs: Inputs for the growth of crops of such as HYV seeds, fertilizers, pesticides, irrigation projects should be improved.

Raising value – added per hectare: The policy aims at increasing the value addition per hectare by raising the productivity in small and marginal holding instead of raising physical output in general.

Protecting the interest of the poor farmers: The policy help the poor and marginal farmers by abolishing intermediaries, extended credit support and land reforms,

Modernising Agriculture sector: Introduction of modem technology in agricultural operations and application of improved agricultural inputs like HYV seeds, fertilizers etc.

Environmental Degradation: One of the objective of the agricultural policy is to check the environmental degradation of natural base.

Removing bureaucracy: Bureaucratic obstacles on the farmers co-operative societies and self – help institutions is to be removed so that farmers can work freely.

Question 6.

Discuss about the Multi-dimentional Poverty Index India and Tamil Nadu.

Answer:

Multi-dimensional Poverty Index 2018 report prepared by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative makes the following observations about India.

India has reduced its poverty rate drastically from 55% to 28% in 10 years, with 271 million people moving out of poverty between 2005-06 and 2015-16.

• India still had 364 million poor people in 2015-16, the largest for any country, although it is down from 635 million in 2005-06.

• Of the 364 million people who were MPI poor in 2015-16,156 million were children whereas in 2005-06 there were 292 million poor children in India. This represents a 47% decrease or 136 million fewer children growing up in multi-dimensional poverty.

• 80% of people belonging to ST were poor in 2005-06 and 50% of them were still poor in 2015-16.

• Bihar with more than half its population in poverty was the poorest state in 2015-16.

• The four poorest states Bihar, Jharkhand, Uttar Pradesh and Madhya Pradesh were still home to 196 million MPI poor people, which was over half of all the MPI poor people in India.

• Kerala, one of the least poor regions in 2006, reduced its MPI by around 92%.

Multi-dimensional Poverty Index 2018 Report in Tamil Nadu:

Over the last decades, Tamil Nadu has made a significant progress in poverty reduction. The districts in Tamil Nadu are classified into three categories, namely high-poverty districts (more than 40% of the population living below poverty line), moderately poor districts (30% to 40%) and low level poverty districts (below 30%).

After 1994, poverty has declined steadily in both rural and urban areas of Tamil Nadu and the state has a smaller share of India’s poor relative to its-population. After 2005, the poverty reduction in this state has been faster than in many other states in India. Tamil Nadu leads in the poverty alleviation programmes during 2014-2017. Government of India is implementing many policies and programmes to eradicate poverty.

These policies and programmes, if continued, will completely eradicate the poverty in the state. In future, Tamil Nadu can become a model of development in India.

Question 7.

Briefly explain the nutritional and health status of Tamil Nadu.

Answer:

Nutrition plays a crucial role in human health and well being.

Tamil Nadu has played a pioneering role in bringing about significant changes in the health and nutrition status.

Children below six years of age, pregnant women, lactating mothers and adolescent girls are mainly taken care of.

Tamil Nadu’s budget allocation for health and nutrition is the highest in the country.

The performance of the Integrated Child Development Services, and the Puratchi Thalaivar MGR Nutritious Meal Programme (PTMGRNMP) are considered one of the best in the country.

In Tamil Nadu, ICDs is being implemented through 54,439 child centres, that is 49,499 Anganwadi centres and 4,940 mini Anganwadi centres.

There are 434 Child Development Blocks in which 385 in rural areas, 47 urban areas and 2 in tribal areas.

The Government of Tamil Nadu’s policy for “A Malnutrition free Tamil Nadu” guides the State’s long term Multi – sectoral strategy for eliminating malnutrition,

Amartya Sen, Noble prize winning Economist stated that he sees a political will and commitment in the state of Tamil Nadu to tackle these issues to achieve the status of a “Malnutrition” “Free state”.

VII. Activity and Projects

Question 1.

Visit nearby “Uzhavar Sandhai” and collect the information about the functions of market.

Answer:

Uzhavar Sandhai is a scheme of the Government of Tamil Nadu to promote direct contact between farmers and consumers in Tamil Nadu.

Functions of Uzhavar Sandhai:

Uzhavar Sandhai also called as Farmer’s market was started at Madurai in 1999 to help the farmers to sell their produce at reasonable rate without the interference of the middlemen.

Uzhavar Sandhai starts its functioning from early morning.

It facilitates direct contact between farmers and the public.

It provides fresh vegetables and fruits at reasonable price daily without any interference from the middlemen.

Prices are listed down in the blackboards in every shop.

It provides correct measurement to the consumers with the price lesser than the retail price in the market.

It also acts as a technical training centre to the farmers.

Some of the Uzhavar Sandhai’s also sell seeds and other inputs to the farmers.

Farmers those who produce less can also sell in these farmer’s market and benefit themselves.

Question 2.

Collect information about health centre functioning nearby your location.

Answer:

Health centres provide continuous and comprehensive care to the patients. It helps in making the patients available with the social welfare and pubilc health services initiated by the Governing bodies.

Functions of Health Centre:

Provision of medical care.

Education about health.

Prevention and control of locally epedemic diseases.

Safe water supply and basic sanitation.

Maternal – child health including family planning.

Clinical Services.

Aged and disability care.

Child care.

Overall Health Promotion.

 Important Questions and Answers

I. Choose the correct answer

Question 1.

The minimum support price is the price announced by the Government at the ……………… of the cropping season.

(a) end

(b) beginning

(c) harvest

(d) none

Answer:

(b) beginning

Question 2.

………… The programme was implemented in selected districts where irrigation was assured.

(a) FCI

(b) HYV

(c) MSD

Answer:

(b) HYV

Question 3.

The nature, scope and functioning of the ……………… varies from State to State.

(a) FCI

(b) PDS

(c) IRDP

(d) None

Answer:

(b) PDS

Question 4.

Buffer stock scheme purpose is …………..

(a) To save food grains from pest attack

(b) To deliver food

(c) To stop price fluctuations

Answer:

(c) To stop price fluctuations

Question 5.

Around 94% of the fair – price shops are run by ……………… in Tamil Nadu.

(a) banks

(b) government

(c) co-operatives

(d) local heads

Answer:

(c) co-operatives

Question 6.

It has been proposed to open new fair price shops so that, no cardholder walks more than ……………… km.

(a) 4

(b) 3.5

(c) 2.5

(d) 1.5

Answer:

(d) 1.5

Question 7.

……………… is a method of monitoring purchasing power.

(a) Purchasing power parity

(b) Whole sale price Index

(c) Consumer price index

(d) Inflation

Answer:

(c) Consumer price index

Question 8.

In general, purchasing power is affected by :

(a) Poverty

(b) Unequal distribution of wealth

(c) Price of the goods

(d) All the above

Answer:

(d) All the above

Question 9.

……………… is the largest economy in terms of PPP – GDP in 2019.

(a) USA

(b) China

(c) Japan

(d) India

Answer:

(b) China

Question 10.

……………… are the factors that constitute the Multi-Dimensional Poverty Index.

(a) Quality of work

(b) Health

(c) Education

(d) All the above

Answer:

(d) All the above

Samacheer Kalvi 10th Social Science Guide Economics Chapter 3 Food Security and Nutrition

Question 11.

……………… district tops in Multi-dimensional index in Tamil Nadu.

(a) Coimbatore

(b) Kancheepuram

(c) Ariyalur

(d) Virudunagar

Answer:

(b) Kancheepuram

Question 12.

The status of ……………… in urban and Rural areas are traced with the help of the National Family Health Survey.

(a) Poverty

(b) Health

(c) Nutrition

(d) All the above

Answer:

(c) Nutrition

Question 13.

……………… is considered to be one of the world’s largest programme of its kind for the holistic development of the child.

(a) ICDS

(b) RCH

(c) NRHM

(d) All the above

Answer:

(a) ICDS

Question 14.

Dr. Muthulakshmi Reddy Maternity Benefit Scheme gives financial assistance to poor pregnant women upto :

(a) ₹ 25,000

(b) ₹ 12,000

(c) ₹ 15,000

(d) ₹ 50,000

Answer:

(b) ₹ 12,000

Question 15.

Better medical care leads to ……………… population.

(a) stable

(b) healthy

(c) disease less

(d) growth of active

Answer:

(b) healthy

II. Match the following

Question 1.

Match the Column I with Column II.

Answer:

A. (ii)

B. (iii)

C. (iv)

D. (v)

E. (i)

Question 2.

Match the Column I with Column II

Answer:

A. (v)

B. (i)

C. (iv)

D. (ii)

E. (iii)

III. Choose the correct statement

Question 1.

(i) India has reduced the poverty rate drastically from 55% to 28 % in the past 10 years.

(ii) Multidimensional poverty index reveals who is poor, how they are poor, and the disadvantages they experience.

(iii) A substantial number of Indian women and children are underweight, anaemic and deficient in micro-nutrient.

(iv) Though India has achieved self – sufficiency in food production, yet to attain food security to all.

(a) (i), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (ii), (iii) are correct

(d) all are correct

Answer:

(d) all are correct

Question 2.

(i) Raising the productivity of inputs and modernising agricultural is one of the aim of PMGYS.

(ii) Amartya Sen is an leading nobel laureate in agricultural science.

(iii) Tamil Nadu Integrated Nutrition programme is assisted financially by the world bank.

(iv) The National Food Security Act was implemented in Tamil Nadu in 2016.

(a) (i), (ii), (iii) are correct

(b) only (iv) is correct

(c) (i), (iv) are wrong

(d) (iii), (iv) are correct

Answer:

(b) only (iv) is correct

IV. Assertion and Reason

Question 1.

Assertion (A): The New Agricultural policy was announced by the Government of India in 2018.

Reason (R): The Government decided to remove export restrictions on most organic and processed agricultural products.

(a) A is correct but R is not the correct explanation to A.

(b) A and R are wrong.

(c) A is correct and R is the correct explanation to A.

(d) A is wrong but R is correct.

Answer:

(c) A is correct and R is the correct explanation to A.

Question 2.

Assertion (A): Government of India is implementing many policies and programmes to eradicate poverty in India.

Reason (R): These policies if continued, Tamil Nadu can become a model of development in India in future.

(a) A is correct but R is not the correct explanation to A.

(b) A is wrong R is correct.

(c) A is correct but R is the correct explanation to A.

(d) A and R are wrong.

Answer:

(a) A is correct but R is not the correct explanation to A.

V. Answer in Short

Question 1.

Write about the National Food Security Act in Tamil Nadu.

Answer:

On 1 November 2016, Tamil Nadu became the last state in the country to implement the National Food Security Act after holding out for three years. In a government order issued on 27 October, the state specified that while it was enforcing the law, it would be modifying its provisions.

Question 2.

Define Nutrition Security.

Answer:

According to eminent agricultural scientist M.S.Swaminathan, Nutrition security is, “Physical, Economic and social access to a balanced diet, safe drinking water, environmental hygiene, primary health care and primary education.

Question 3.

What is the purchasing power parity?

Answer:

• PPP is an economic theory that estimates the amount that needs to be adjusted to the price of an item, given exchange rates of the two countries, in order for the exchange to match each currency’s purchasing power.

• PPP can be used to compare countries income levels and other relevant economics data concerning the cost of living, or possible rates of inflation and deflation.

Question 4.

What does availability of food depend upon?

Answer:

The Availability of food depends upon the domestic production, changes in stocks and imports.

Question 5.

Name the three-tier structure of consumer cooperative societies in India?

Answer:

Primary consumer cooperative societies

Central consumer cooperative stores.

State-level consumer federation.

Question 6.

Write a note on National Food Security Act in Tamil Nadu.

Answer:

The National Food Security Act was passed by the Indian Parliament in 2013. On Nov 1, 2016 Tamil Nadu became a last state in the country to implement the Act. On 27th October, the State specified that while enforcing the law, it would modify the provisions.

Question 7.

What is meant by Buffer stock?

Answer:

Buffer stock is the stock of food grains namely wheat and rice procured by the Government through the Food Corporation of India.

Question 8.

How does the Buffer stock scheme help the people?

Answer:

The Buffer stock helps to resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity.

Question 9.

What is meant by Issue Price?

Answer:

Buffer stock is done to distribute food grains in the deficit areas and among the poorer strata of the society at a price lower than the market price also known as the Issue Price.

Question 10.

What are the three major dimensions of poverty?

Answer:

Health, Education and living standard are the major dimensions of poverty.

Question 11.

What is Padhumaiyar Kuzhu?

Answer:

Empowering adolescent girls and making them participate in the peer group services and activities as a group. This would enable them to gain confidence and became a catalyst of change.

Question 12.

What is PPP?

Answer:

PPP refers to the Purchasing Power Parity. It is an economic theory that estimates the amount that needs to be adjusted to the price of the item, given the exchange rate of the two countries.

Question 13.

What are the uses of PPP?

Answer:

PPP is used to compare countries income levels, and other relevant economic data concerning the cost of living, (or) possible rates of Inflation or deflation.

Question 14.

What is meant by Agricultural policy?

Answer:

Agricultural policy of a country is designed for increasing the agricultural production and productivity thereby raising the level of income and standard of living of the farmers within a particular period of time.

Question 15.

What are the ten indicators of Multi – Dimensional poverty index.

Answer:

Nutrition and child mortality under health.

Years of schooling and school attendance under education.

Cooking fuel, sanitation, water, Electricity, floor, assets under living standards.

Question 16.

Write a note on The Chief Minister’s Comprehensive Health Insurance scheme.

Answer:

It was launched in 2011 – 12.

Aims to provide free medical and surgical treatment in Government and private hospital to any family whose annual income is less than ? 72,000

To reach the goal of Universal Health Care to All.

Question 17.

When does Food security exists?

Answer:

Food security exists when all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food to meet dietary needs and food preferences for an active and healthy life.

Question 18.

Write a note a Dr. Muthulakshmi Reddy Maternity Benefit Scheme.

Answer:

Gives financial assistance upto ₹ 12,000 to poor pregnant women on nutritious diet in 3 instalments.

This helps to avoid low birth weight of new bom babies.

These women can avail ante – natal care delivering and immunising the baby bom on Government hospitals.

Question 19.

What was the aim of the National leprosy Eradication Programme?

Answer:

Its aim is to detect and to provide sustained regular treatment to all leprosy patients in the State.

Question 20.

Write the names of the four poorest states of India.

Answer:

Bihar, Jharkhand, Uttarpradesh and Madhyapradesh are the four states with more number of poor people live.

VI. Answer in Detail

Question 1.

Explain the role of consumer co-operation in food security of India.

Answer:

Consumer co-operatives play an important role in the supply of quality goods at reasonable rates to common people.

It has a three tier structure.

They are Primary Consumer Co-operative Society, Central Consumer Co-operative Stores, State Level Consumer Federations.

More than 50,000 village level societies are engaged in the distribution of consumer goods in rural areas.

There are other benefits from consumer co-operatives such as Health Care, Insurance, Housing etc.,

Consumer co-operatives play a very important role in Tamil Nadu can be well witnessed as to around 94% of fair price shops are being run by co-operatives.

Question 2.

Name and explain the two components of food security system in India:

Answer:

The two components of food security system in India are Buffer stock and Public distribution system.

(i) Buffer Stock:

It is the stock of food grains (wheat and rice) procured by the government through Food Corporation of India (FCI). It is used to distribute food grain in the deficit areas and among the poorer strata of society at a price lower than the market price. This , stock is also used during among natural calamity such as drought or earthquake.

(ii) Public Distribution System:

The food produced by the FCI is distributed through government-regulated ration shops among the poorer section of the society. This is called the Public Distribution System.


Tamilnadu, board, ssc, samacheer kalvi, economics, Chapter 2 Globalization and Trade,

I. Choose the correct Answer

Question 1.

Who is the head of the World Trade Organisation (WTO)?

(a) Ministerial conference

(b) Director General

(c) Deputy Director General

(d) None of these

Answer:

(b) Director General

Question 2.

How many countries were membership in WTO at present?

(a) 159

(b) 164

(c) 148

(d) 128

Answer:

(b) 164

Question 3.

Colonial advent in India:

(a) Portuguese, Dutch, English, Danish, French

(b) Dutch, English, Danish , French

(c) Portuguese , Danish, Dutch, French, English

(d) Danish, Portuguese, French, English, Dutch

Answer:

(a) Portuguese, Dutch, English, Danish, French

Question 4.

Who first came to India for trading purpose?

(a) Roman Empire

(b) Portuguese

(c) Dutch

(d) Danish

Answer:

(b) Portuguese

Question 5.

When did Portuguese colonize India?

(a) 1600 BC

(b) 1602 BC

(c) 1498 BC

(d) 1616 BC

Answer:

(c) 1498 BC

Question 6.

GATT’s first round held in

(a) Tokyo

(b) Uruguay

(c) Torquay

(d) Geneva

Answer:

(d) Geneva

Question 7.

India signed the Dunket proposal in:

(a) 1984

(b) 1976

(c) 1950

(d) 1994

Answer:

(d) 1994

Question 8.

Who granted the English “golden Fireman” in 1632?

(a) Jahangir

(b) Sultan of Golconda

(c) Akbar

(d) Aurangazeb

Answer:

(b) Sultan of Golconda

Question 9.

Foreign investment policy (FIR) announced in

(a) June 1991

(b) July 1991

(c) July-Aug-1991

(d) Aug 1991

Answer:

(c) July-Aug-1991

Question 10.

Indian government was introduced in …………. 1991.

(a) Globalization

(b) World Trade Organisation

(c) New Economic Policy

(d) none

Answer:

(c) New Economic Policy

II. Fill in the Blanks

The Dutch captured Pondicherry in ………………

A better economy Introduce rapid development of the ………………

The East india Company built fortified factory in Madras which known as ………………

WTO agreement came into force from ………………

The term globalization Invented by ………………

French East India company established second factory at ………………

Answer:

1693

Capital market

Fort St. George

January 1, 1995

Prof. Theodore Levitt

Pondicherry

III. Choose the correct statement

Question 1.

(i) The East Indian Company especially to participate in the East Indian Spice Trade and later added cotton, silk, indigo.

(ii) Merchants cf the Dutch East India Company first established at Calicut

(iii) Nanadesis were a guild of traders at the time of Hoysala Empire

(a) (i) is correct

(b) (ii) and (iii) are correct

(c) (i) and (in) are correct

(d) (i), (ii) and (iii) are correct

Answer:

(a) (i) is correct

IV. Match the following

Answer:

A. (iv)

B. (iii)

C. (i)

D. (v)

E. (ii)

V. Give Short Answers

Question 1.

What is globalization?

Answer:

Globalization is the process of integrating various economies of the world without creating any barriers in the free flow of goods and services, technology, capital and even labour or human capital.

Question 2.

Write the types of globalization?

Answer:

The types of Globalization are:

Economic Globalization: Countries integrating economically

Social: Information and ideas integration socially all over the world.

Political: Political co-operation between countries.

Question 3.

Write short note on Multinational corporation.

Answer:

Multinational corporation is a corporate organisation which owns or controls production of . goods or services in at least one country other than its home country. MNCs are also called Transnational corporation (TNG) or Multinational Enterprise (MNE). Most of the MNCs at present belong to the lour major exporting countries – USA. UK. France and Germany.

Question 4.

Short note: The Dutch in South India.

Answer:

Dutch East India company was formed in 1602. Dutch established factories at Masulipatnam, Pettapoli, Devanampattinam and with the help of King of Chandragiri Pulicut factory also. The commodities exported by the Dutch were Indigo, Saltpeter, Bengal raw silk. They captured Nagapatnam from Portuguese in 1659.

Question 5.

What are the reforms made to adopt globalization?

Answer:

The following reforms were made-to adapt globalization in India.

Abolition of industrial licensing, except for a few industries.

Reduction in the number of industries reserved for public sector.

Fixation of a realistic exchange rate of rupee to exchange exports of Indian goods.

Foreign exchange regulations were suitably amended.

The Statutory Liquidity Ratio (SLR) was reduced to increase lending by RBI.

Question 6.

What is fair trade?

Answer:

Fair trade is a way of doing business that ultimately aims to keep small farmers an active part of the world market and aims to empower consumer to make purchases that support their values.

Question 7.

Write any five principles of Fair Trade Practices.

Answer:

Five principles of Fair trade practices:

Creating opportunities for economically disadvantaged producers.

Transforming and accountability.

Fair trading practices and payment of fair price.

Ensuring no child labour and forced labour.

Respect for the environment.

Question 8.

What is the main objective of WTO?

Answer:

The main objective of WTO (World Trade Organisation) is to enforce rules for International trade, to resolve trade disputes and to provide a forum for negotiating and monitoring trade.

Question 9.

Write short note on TRIPs and TRIMs.

Answer:

TRIPs – Trade Related aspects of Intellectual Property Rights – is an international legal agreement between all the member nations of the World Trade Organisation (WTO). It sets down minimum standards for the regulation by national Governments of many fonns of intellectual property as applied to nationals of other WTO member nations. TRIPs was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) between 1989 and 1990 and is administered by the WTO.

TRIMS – Trade Related Investment Measures – The Uruguay Round Agreement on TRIMs referes to certain conditions or restrictions imposed by a Government in respect of foreign investment in the country in order to give adequate provisions for the home industries to develop.

Question 10.

Write the positive impact of Globalization.

Answer:

A better economy introduces rapid development of the capital market

Standard of living has increased

Better trade, therefore more employment

Introduction of new technologies

New scientific research patterns .

Increases GDP of a country

Increase free flow of goods and

Increase FDI – Foreign Direct Investment

VI. Brief Answer

Question 1.

Write briefly the history of Globalization.

Answer:

The term Globalization was introduced by Prof. Theodore Levitt. The history of Globalization can be explained in three stages namely

Archaic globalization

Proto Globalization

Modem Globalization

Archaic Globalization: An early form of globalized economies and culture is known as Archaic Globalization existed during the Hellenistic Age. The trade links of the earlier days can be summarised as

Between Sumerian and Indus Valley Civilisation

Greek culture stretched from India to Spain

Between Roman empire, Parthian empire and the Hans dynasty.

The advent of Mongol empire greatly facilitated travel along the silk road.

These Pre-modem phases of global exchange are called Archaic Globalization.

Proto Globalization: It arose because of the rise of maritime European empires in the 16th and 17th Centuries, the Portuguese, Spanish, Dutch and British empires. In the 17th century, the British East India company is described as the first Multinational Company and the Dutch East India company were established.

Modern Globalization: It is witnessed between 19th and 20th century. In the 19th century – Global trade and capital investment. In the 20th century, higher share of trade in merchant production, Global trade in services, Rise in production and trade by MNCs and Technological changes. Agreements of trade contracts like the General Agreement on Tariffs and Trade (GATT) and World Trade Organisation (WTO). Technological changes lowered the cost of transport charges.

Question 2.

Briefly explain the evolution of MNC and its advantages and disadvantages.

Answer:

Multinational companies first started their activities in the extractive industries and controlled raw materials in the host countries during 1920s and then entered the manufacturing and service sectors after 1950s. Most of the MNCs at present belong to the four major exporting countries i.e., USA, UK, France and Germany. However, the largest is America. In 1971, the American Corporations held 52% of the total world stock of foreign direct inverstment. Great Britain held 14.5% followed by France 5% and Federal Republic of Germany 4.4% and Japan 2.7%.

Advantages of MNCs:

MNCs produce the same quality of goods at lower cost and without transaction cost.

They reduce prices and increase the purchasing power of consumers world wide.

They are able to take advantage of tax variation.

They spur job growth in the local economy.

Disadvantages of MNCs:

They have led to the downfall of smaller, local business.

With more companies transferring offices and centering operations in other countries, jobs for the people living in developed countries are threatened.

MNCs often invest in developing countries where they can take advantage of cheaper labour. Some MNCs prefer to put up branches in these parts of the world where there are no stringent policies in labour and where people need jobs because these MNCs can demand for cheaper labour and lesser healthcare benefits.

Question 3.

Explain the trade and traders in South India.

Answer:

South India trade guilds were formed by merchants inorder to organise and expand their trading activities.

South India trade was dominated by the Cholas and it w’as replaced by the Pallavas.

Several trade guilds operated in medieval southern India such as the Gatrigas, Nakaras, Mummuridandas, Settis, Birudas, Gavaras etc.

In the early trade, the Kalinga traders brought red coloured stone decorative objects for trade and also cotton textile to south east Asia.

The discovery of a new all sea route from Europe to India via Cape of Good Hope by Vasco-do-Gama helped to flourish trade in India.

India’s coastal and maritime trade was monopolized by the Europeans.

Therefore it was due to the trading activities European companies came to India.

Question 4.

Write about the World Trade Organisation.

Answer:

The World Trade Organisation or WTO is the only global international organisation dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trending nations and satisfied in their Parliaments. The WTO began operations on January 1, 1995 after the completion of the Uruguay Round (1986-94) of Multi lateral trade negotiations.

WTO has six key objectives

To set and enforce for international trade.

To provide a forum for negotiating and monitoring further trade liberalisation.

To resolve trade disputes.

To increase the transparency of decision making.

To corporate with other major international economic institutions involved in global economic management.

To help developing countries benefit fully from the global trading system.

Question 5.

Write the challenges of Globalization.

Answer:

Globalization means the integration of the home economy with the world Economy

There is a general belief that the benefits of globalization extends to all countries. But that will not happen automatically.

There is a constant fear the globalization leads to instability in the developing world.

Due to globalization, the industrial world has increased global competition.

This leads to race in low level, labour right and employment practices among the industrial world.

It may led to global imbalance.

It may result to activities like child labour, slavery.

It may also affect health as consumers are tempted to use more attracti ve junk foods.

It may affect environment .Because more of use and throw products and packed items may affect nature and our survival.

Samacheer Kalvi 10th Social Science Guide Economics Chapter 2 Globalization and Trade

VII. Activity and Project

Question 2.

Students are collect the images regarded to the globalization and make the album, (south Indian trade and traders images, and silk route map, spice route map, and kalinga trade map, etc).

Answer:

Students should collect pictures of South Indian

(a) Traders and make it as an album: Student can access to google and search by typing” ancient South Indian Traders” images and collect the relevant information.

Silk route map: The silk route was an ancient network of trade routes that connected the East and the West connecting Asia, Europe and Africa. It was mainly used to transport silk.

Spice route map: Spice route is the name as spices were traded with a way of sea route. Spices such as cinnamon, ginger, pepper, turmeric etc. Traded between Asia, Europe and Africa.

Kalinga route map: Trade routes of Kalinga sailors. They used to trade along their South West voyage along the East Coast of India. Their boats used to sail from Mahanadhi to Bali and right upto Nagapattinam in Cauvery delta. Also they sail along the East coast of Srilanka.

Question 3.

Students are collect the picture of various Multinational corporation companies in India and its products pictures.

Answer:

Students can collect the pictures of various Multinational corporation companies (list is given in the text book itself) and paste the pictures and make an album.

Multinational corporation in India    Products

Microsoft Corporation India    Software products

IBM – International Business Machines Corporation    Business consulting, storage solutions.

Nestle    Food products

Proctor and Gamble (P & G)    Beauty care, Grooming, healthcare and house hold care

Citi group    Banking operations

Sony corporation    Electronic products and entertainment products.

Hewlett-Packar (hp)    Laptops, monitors, desktop and Printers

Coco-cola    Non-Alcoholic beverages

Pepsico    Snacks and beverages

Apple inc    Laptop, phone, software, online services.

Important Questions and Answers

I. Choose the correct answer

Question 1.

The supporting pillars of NEP, 1991 of India is …………………

(a) LPG

(b) WTO

(c) IMF

(d) None

Answer:

(a) LPG

Question 2.

The Dames sold all their Indian settlements to ……………

(a) the British

(b) the French

(c) the Portuguese

(d) none

Answer:

(a) the British

Question 3.

The term ………………… refers to the integration of the domestic economy with the rest of the world.

(a) Privatisation

(b) Liberalisation

(c) Globalization

(d) World trade

Answer:

(c) Globalization

Question 4.

Which among the following was the largest MNC in India in 2018?

(a) Pepsi Company

(b) Tata Group

(c) Microsoft Corporation

(d) Sony Corporation

Answer:

(d) Sony Corporation

Question 5.

The term Globalization was introduced by …………………

(a) Simon Kuznets

(b) Theodore Levitt

(c) Marshall

(d) Adam Smith

Answer:

(b) Theodore Levitt

Question 6.

A company that owns or controls production in more than one nation is called ………………

(a) Foreign Company

(b) Multinational Company

(c) Local Company

Answer:

(b) Multinational Company

Question 7.

Archaic Globalization is the ………………… stage of Globalization.

(a) one

(b) two

(c) three

(d) four

Answer:

(a) one

Question 8.

Which one of the following is not an MNC?

(a) Reebok shoes

(b) SAIL

(c) Infosys

Answer:

(b) SAIL

Question 9.

Proto Globalization is the ………………… stage of Globalization.

(a) one

(b) two

(c) three

(d) four

Answer:

(b) two

Question 10.

WTO is dominated by countries like …………….

(a) US and UK

(b) China and France

(c) India and Japan

Answer:

(a) US and UK

Question 11.

The 17th century Globalization became ………………… business phenomenon.

(a) Government

(b) Private

(c) Domestic

(d) Foreign

Answer:

(b) Private

Question 12.

………………… is an example for a multinational trade agreement.

(a) GATT

(b) WTO

(c) Both (a) and (b)

(d) MNC

Answer:

(c) Both (a) and (b)

Question 13.

South India trade ………………… were formed by merchants in order to organize and expand their trade activities.

(a) routes

(b) guilds

(c) organisation

(d) Both (b) and (c)

Answer:

(b) guilds

Question 14.

The olden days Kalinga is the present day …………………

(a) Tamil Nadu

(b) Orissa

(c) M.P.

(d) Delhi

Answer:

(b) Orissa

Question 15.

Chettiars in Tamil Nadu are examples of early …………………

(a) people

(b) Traders

(c) nationalists

(d) Bankers

Answer:

(b) Traders

Question 16.

The arrival of Alvarez cabral in India in 1500 A.D. led to the establishment of trading station at …………………

(a) Cochin

(b) Calcutta

(c) Both (a) and (b)

(d) None

Answer:

(c) Both (a) and (b)

Question 17.

………………… was the headquarters of the Dutch in India.

(a) Portuguese

(b) Dutch

(c) Arabia

(d) Pulicut

Answer:

(d) Pulicut

Question 18.

The Sultan of Golconda granted the English the “Golden Fireman” in …………………

(a) 1634

(b) 1632

(c) 1631

(d) 1630

Answer:

(b) 1632

Question 19.

In 1639, English build a fortified factory in Madras which was known as …………………

(a) Fort Pulicut

(b) Fort St. George

(c) Fort Masulipatnam

(d) Fort Pettapoli

Answer:

(b) Fort St. George

Question 20.

The first French factory in India was established in ………………… by obtaining permission from the Sultan of Golconda.

(a) 1634

(b) 1668

(c) 1693

(d) 1642

Answer:

(b) 1668

Question 21.

Pondicherry was the headquarters of the

(a) British

(b) Spanish

(c) French

(d) Dutch

Answer:

(c) French

Question 22.

Initially Pondicherry was captured by the ………………… and later handed over to the French.

(a) British

(b) Dutch

(c) Spaniards

(d) Sultan of Golconda

Answer:

(b) Dutch

Question 23.

Pondicherry became the headquarters of the France in the year …………………

(a) 1664

(b) 1693

(c) 1700

(d) 1701

Answer:

(d) 1701

Question 24.

India signed the Dunkel draft in the year …………………

(a) 1664

(b) 1993

(c) 1994

(d) 1893

Answer:

(c) 1994

Question 25.

One of the reform made to adopt Globalization was …………………

(a) Abolition of Industrial licensing

(b) Reduction of Public Sector

(c) Foreign exchange regulations

(d) All the industries above

Answer:

(d) All the industries above

Question 26.

Multinational corporations are also called as …………………

(a) Transnational corporation

(b) Multi-national Enterprise

(c) MNCs

(d) All the above

Answer:

(d) All the above

Question 27.

………………… country has the largest multinational companies in the world.

(a) USA

(b) UK

(c) France

(d) Germany

Answer:

(a) USA

Question 28.

Of the below given choices, find out, which is a multinational corporation.

(a) Tata Group

(b) Nettle

(c) IBM

(d) All the above

Answer:

(d) All the above

Question 29.

GATT was established in …………………

(a) 1946

(b) 1945

(c) 1947

(d) 1948

Answer:

(c) 1947

Question 30.

Eighth round of GATT was known as ………………… Round.

(a) Tokyo

(b) Uruguay

(c) Torquay

(d) Geneva

Answer:

(b) Uruguay

Question 31.

………………… countries participated in the eighth round of GATT.

(a) 127

(b) 117

(c) 167

(d) 107

Answer:

(b) 117

Question 32.

The eighth round of Talks of GATT took place in the year …………………

(a) 1983

(b) 1984

(c) 1985

(d) 1986

Answer:

(d) 1986

Question 33.

Uruguay Round final Act was signed by the member nations in the year …………………

(a) 1986

(b) 1990

(c) 1992

(d) 1994

Answer:

(d) 1994

Question 34.

The Headquarters of WTO is in …………………

(a) Geneva

(b) Scotland

(c) America

(d) Holland

Answer:

(a) Geneva

Question 35.

G7 countries means ………………… countries of the world.

(a) Developed

(b) Developing

(c) Under developed

(d) Less developed

Answer:

(a) Developed

Question 36.

GATT was signed by ………………… countries in 1947.

(a) 22

(b) 23

(c) 21

(d) 117

Answer:

(b) 23

Question 37.

TRIPS include the following areas of …………………

(a) Trade Secrets

(b) Copy rights

(c) patents

(d) All the above

Answer:

(d) All the above

Question 38.

Globalization increases GDP of a country by free flow of goods and also to increase …………………

(a) FDI

(b) GNP

(c) Technological improvement

(d) Both (a) and (c)

Answer:

(d) Both (a) and (c)

Question 39.

TRIMs refers to certain ………………… imposed by the government in respect of foreign investment of a country.

(a) Conditions

(b) Control

(c) Restrictions

(d) All the above

Answer:

(d) All the above

Question 40.

………………… sometimes may lead to Child labour and slavery.

(a) Liberalisation

(b) Privatisation

(c) Globalization

(d) None

Answer:

(c) Globalization

II. Fill in the Blanks

LPG is the supporting pillar of India’s ………………..

means integration of the international market for goods and services.

The term Globalization was introduced by Prof ………………..

The History of Globalization can be studied under ……………….. stages.

The first stage of the history of Globalization is called ……………….. Globalization.

The third stage of the history of Globalization is called ……………….. Globalization.

The Proto Globalization is the ……………….. stage of the history of Globalization.

The Archaic Globalization existed during the ……………….. Age.

The Dutch East India Company was founded in the year ………………..

The expansion of GATT is ………………..

The ……………….. is the expansion for WTO

South Indian trade was dominated by the ……………….. and replaced by the ………………..

Kalinga traders brought ……………….. coloured stone decorative objects for trade.

India’s coastal and maritime trade was monopolized by the ………………..

The Portuguese under the leadership of Vasco do Gama landed at Calicut in ………………..

……………….. was the early capital of Portuguese in India.

The Sultan of Golconda granted the English the ……………….. in 1632.

In 1639, English build a fortified factory in Madras which is known as ………………..

……………….. was the headquarters of Danes in India

The first French factory was established in ………………..

The first French factory was established with the permission from the Sultan of ………………..

……………….. was the headquarters of the French.

Pondicherry became the headquarters of the French in the year ………………..

Recently the Government of India has set up ……………….. to boost exports.

India signed the Dunkel Draft in the year ………………..

When India was in crisis in 1990’s India mortgaged 40 tons of gold to the Bank of ………………..

The New Economic Policy was put forth in the year ………………..

The ……………….. is a corporate organisation operates in many countries other than home country.

Multinational Corporations are also called as ………………..

Of the MNC ……………….. is the largest, holding a major share of the FDI

India announced the Foreign Investment policy in the year ………………..

The growth of MNC may lead to the downfall of smaller local ……………….. of the host country.

The expansion of FCRA is ………………..

GATT was signed in the year ………………..

Initially, GATT was signed by ……………….. countries.

In the seventh round of GATT ……………….. countries participated.

GATT’s primary purpose was to increase International Trade by reducing ………………..

The headquarters of GATT is in ………………..

The Eighth round of GATT is called as ………………..

The signing of GATT in 1994 paved the way for the setting up of ………………..

Intellectual property right may be defined as ………………..

The expansion of TRIPs is ………………..

The expansion of TRIMs is ………………..

One of the negative effect of ……………….. is that it may lead to slavery and Child labour.

The Trade Secret is an agreement covered under ………………..

Answers:

New Economic Policy

Globalization

Theodore Levitt

Three

Archaic

Modem

Second

Hellenistic

1602

General Agreement on Tariffs and

World Trade Organisation

Cholas, Pallavas

Red

Europeans

1498

Cochin

Golden Fireman

Fort St.George

Triangular

1668

Golconda

Pondicherry

1701

Special Economic Zones

1994

England

1991

MNC

Multinational Enterprise

America

1991

Business

Foreign Contribution Regulation Act

1947

23

99

various tariffs

Geneva

Uruguay Round

WTO

Information with a commercial value

Trade Related Intellectual Property Rights

Trade Related Investment Measures

Globalization

TRIPs

III. Choose the correct statement

Question 1.

(i) Globalization has led to environmental degradation.

(ii) GATT was signed by 73 countries in 1949

(iii) TRIPs and TRIMs are a part of WTO

(iv) It takes only a few hours to transport goods between continents today.

(a) (i), (iii), (iv) is correct

(b) (i), (ii), (iv) is correct

(c) (i), (ii) is correct

(d) (ii), (iv) is correct

Answer:

(a) (i), (iii), (iv) is correct

Question 2.

(i) Proto Globalization was characterized by the rise of maritime European Empires.

(ii) The pre-modern phase of global exchange are sometimes known as Proto Globalization.

(iii) The Kalinga traders brought Red coloured stone decorative objects for trade

(iv) The Danes formed an East India Company and arrive in India in 1616.

(a) (i), (iii), (iv) is correct

(b) (i), (ii), (iv) is correct

(c) (i), (ii), (iii)is correct

(d) (iii), (iv) is correct

Answer:

(a) (i), (iii), (iv) is correct

Question 3.

(i) The MNC first started their activities in controlling the industries of the host countries.

(ii) Indian Government mortgaged 40 tons of gold to the Bank of England prior to 1991.

(iii) To boost exports, recently, the Government of India announced Demonetisation and Goods and Services Tax.

(iv) The French failed in India and in 1845, they were forced to sell all their Indian settlements to the British.

(a) (i), (iii), (iv) is correct

(b) (i), (ii), (iv) is correct

(c) (i), (ii), (iii) is correct

(d) (i), (ii) is correct

Answer:

(d) (i), (ii) is correct

Question 4.

(i) The main reason for the growth of MNC is on the account of technological superiorities.

(ii) An MNC is able to take advantage of tax variation.

(iii) WTO provides a forum for negotiating and monitoring trade liberalisation.

(iv) The agreement of the final act of Uruguay Round was agreed by 104 member countries.

(a) (i),(ii),(iii) are correct

(b) (i),(ii),(iii) and (iv) are correct

(c) (i), (ii), (iii) are wrong

(d) (i) is correct

Answer:

(b) (i),(ii),(iii) and (iv) are correct

IV. Assertion and Reason

Question 1.

Assertion (A): After 1991, there was a spurt of foreign collaborations in India and increase flow of FDI-Foreign Direct Investment.

Reason (R): The liberalized Foreign Investment Policy (FIP) was announced in India in July-August 1991.

(a) A is correct and R is the correct explanation to A

(b) A is correct and R is not the correct explanation to A

(c) Both A and R are wrong

(d) A is wrong, but R is correct

Answer:

(a) A is correct and R is the correct explanation to A

Question 2.

Assertion (A); The introduction of MNC into a host country’s economy may lead to the downfall of small, local business.

Reason (R): Spurring job growth in the local economies.

(a) A is correct and R is the correct explanation to A

(b) A is correct and R is not the correct explanation to A

(c) Both A and R are wrong

(d) A is wrong, but R is correct

Answer:

(b) A is correct and R is not the correct explanation to A

Question 3.

Assertion (A): India’s coastal and maritime trade was monopolized by the Europeans.

Reason (R): Trade guilds were channels through which Indian Culture was exported to other lands.

(a) A is correct and R is the correct explanation to A.

(b) A is correct and R is not the correct explanation to A

(c) Both A and R are wrong

(d) A is wrong, but R is correct.

Answer:

(b) A is correct and R is not the correct explanation to A

V. Match the following

Question 1.

Match the Column I with Column II.

Answer:

A. (iii)

B. (iv)

C. (vi)

D. (i)

E. (ii)

Question 2.

Match the Column I with Column II.

Answer:

A. (v)

B. (i)

C. (vi)

D. (ii)

E. (iii)

VI. Give Short answers

Question 1.

What is the Foreign Contribution (Regulation) Act, 2010?

Answer”

The Foreign Contribution (Regulation) Act or FCRA, 2010 has been enacted the Parliament to consolidate the law to regulate the acceptance and utilisation of Foreign contributions or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.

Question 2.

How did India’s NEP emerged?

Answer:

When India was facing a down grading economic crisis situation, the government presented a budget in July 1991 for 1991-92 with a series of policy changes which underlined liberalization, privatization and globalization. This has come to be called as India’s New Economic policy.

Question 3.

What came to be known as India’s new economic policy? How was this policy strengthened?

Answer:

With the downgrading of India’s credit rating by some international agencies, these was heavy flight of capital out of India. The Government has to mortgage 40 tons of gold to the Bank of England. Under these circumstances, the Government for 1991-92 presented its budget in July 1991 with a series of policy changes which underlined globalization, liberalisation and privatisation. This has come to be called as India’s new economic policy.

Question 4.

Write a note on SEZ?

Answer:

SEZ means Special Economic Zones . Recently the Government of India has set up special Economic Zones in southern states of especially in Tamil Nadu, Andhra Pradesh, Karnataka and Kerala with a view to boost exports. Few SEZ in Tamil Nadu are Nanguneri SEZ, Ennore SEZ, Coimbatore SEZ.

Question 5.

How are producers beneficiaries of fair trade?

Answer:

For producers fair trade is unique in offering four important benefits.

Stable prices that cover the costs of sustainable production.

Market access That enables buyers to trade with producers who would otherwise be excluded from market.

Partnerships (producers are involved) in decisions that affect their future.

Question 6.

Write any type of subsidies the WTO offers to its member countries?

Answer:

Tax concessions such as exemptions , credits (or) deferrals.

Cash subsidies such as the grants.

Question 7.

What was the idea behind developing SEZ in India?

Answer:

To attract foreign companies to invest in India.

VII. Brief Answer

Question 1.

What is fair trade? Who are the beneficiaries of fair trade practices? How?

Answer:

Fair trade is an industrial arrangement designed to help producers in developing countries achieve better trading conditions. Fair trade is about better prices, decent working conditions and fair terms of trade for fanners and workers.

With fair trade, everyone is the beneficiary. Take examples of consumers, traders and producers.

(i) Consumers – Fair trade relationship provide the basis for connecting producers with consumer and for informing consumers of the need for social justice and the opportunities for change. Consumer support enables fair trade organisation to be advocates and campaigners for wider reform of international trading rules, to achieve the ultimate goal of a just and equitable global trading system. Shoppers can buy products in line with their values and principles. They can choose from an ever growing range of great products.

(ii) Traders / Companies – Since its launch in 2002, the fair trade mark has become the most widely, recognised social and development label in the world. Fair trade offers companies a credible way to ensure that their trade has a positive impact for the people at the end of the chain.

(iii) Producers – For producers fair trade is unique in offering important benefits:

(a) stable prices that cover the costs of sustainable production,

(b) market access that enables buyers to trade with producers who would otherwise be excluded from market,

(c) partnership

(d) empowerment of farmers and workers.

Question 2.

Write a note on the beneficiaries of Fair Trade practices.

Answer:

Fair Trade is about better prices, decent working conditions and fair terms of trade for farmers and workers.

Beneficiaries of Fair Trade practices:

Consumers:

Consumers are the main beneficiaries.

This is because they can advocate and compare for wide reform of International trading rules.

They can choose from growing range of great products.

Consumers support producers by buying fair trade labelled products who are struggling to improve their lives.

Traders (or) companies:

Fair Trade offer companies a credible way to ensure that they have a positive impact.

Launched in 2002, Fair Trade mark has become the most widely, recognized social and development label in the world.

Producers:

It gives the farmers / producers a kind of empowerment.

Stable prices cover the cost of sustainable production.

Buyers easily access the market and trade with producers, which in turn boost production.

Samacheer Kalvi 10th Social Science Guide Economics Chapter 2 Globalization and Trade

Question 3.

What are the factors that multinational companies take into account before setting up a factory in different countries?

Answer:

Before setting up a company or a factory, an MNC takes into account the following things:

(i) Availability of cheap labour and other resources:

MNC’s setup offices and factories for production in various regions of the world, where cheap labour and other resources are available in order to earn greater profit.

(ii) Partnership with local companies:

MNC’s setup partnership with local companies, by a closely competing with local companies or buying local companies for supply. As a result, production in these widely dispersed locations gets interlinked.

(iii) Favourable Government Policy:

If the Government Policies are favourable, it helps MNC’s. For example: Flexibility of labour laws will reduce cost of production. MNC’s are able to hire worker on casual and contractual wages for a short period instead of a regular basis. This reduces the cost of labour for the company and increases its margin of profit.

Question 4.

What are the reasons for the growth of MNC?

Answer:

Expansion of Market: For a large size firm, when its activities expand more and more , it goes beyond their country’s boundary and move to other countries market.

Marketing superiorities:

A MNC enjoys market reputation easily .

It faces loss difficulty in selling the products .

It can adopt very effective advertisement tactics.

All these help in their sales promotion.

High level of financial resources:

A MNC has high level of financial resources which helps them in high level of fund utilisation.

Easy access to external capital market.

Can raise more International resources to improve their production at any cost.

Advancement in Technology:

The High level of technology of the MNCs attract them to participate in Industrial development.

It helps them to offer products at a low price.

Product Innovation:

They can develop new products.

New Designs of existing products.

Designs that help the new generations to apply their knowledge.


Tamilnadu, board, economics, Chapter 1, Gross Domestic Product and its Growth, an Introduction,

I. Choose the correct answer

Question 1.

GNP equals:

(a) NNP adjusted for inflation

(b) GDP adjusted for inflation

(c) GDP plus net factor income from abroad

(d) NNP plus net property income or abroad

Answer:

(c) GDP plus net factor income from abroad

Question 2.

National Income is a measure of ……………

(a) Total value of money

(b) Total value of producer goods

(c) Total value of consumption goods

(d) Total value of goods and services

Answer:

(d) Total value of goods and services

Question 3.

Primary sector consist of:

(a) Agriculture

(b) Automobiles

(c) Trade

(d) Banking

Answer:

(a) Agriculture

Question 4.

……………… approach is the value added by each intermediate good is summed to estimate the value of the final good.

(a) Expenditure approach

(b) Value-added approach

(c) income approach

(d) National Income

Answer:

(b) Value-added approach

Question 5.

Which one sector is highest employment in the GDP?

(a) Agricultural sector

(b) Industrial sector

(c) Service sector

(d) None of the above

Answer:

(a) Agricultural sector

Question 6.

Gross value added at current prices for services sector is estimated at …………… lakh crore in 2018-19.

(a) 91.06

(b) 92.26

(c) 80.07

(d) 98.29

Answer:

(b) 92.26

Question 7.

India is ……………. largest producer in agricultural product.

(a) 1st

(b) 3rd

(c) 4th

(d) 2nd

Answer:

(d) 2nd

Question 8.

India’s life expectancy at birth is ………….. years.

(a) 65

(b) 60

(c) 70

(d) 55

Answer:

(a) 65

Question 9.

Which one is a trade policy?

(a) irrigation policy

(b) import and export policy

(c) land-reform policy

(d) wage policy

Answer:

(b) import and export policy

Question 10.

Indian economy is ……………

(a) Developing Economy

(b) Emerging Economy

(c) Dual Economy

(d) All the above

Answer:

(d) All the above

II. Fill in the blanks

………………… sector is largest sector in India.

GDP is the indicator of ………………… economy.

Secondary sector otherwise called as …………………

………………… sector is the growth engine of Indian economy.

India is ………………… largest economy of the world.

India is ………………… fastest growing nation of the world.

………………… policy envisages rapid industrialization with modernization for attaining rapid economic growth of GDP.

Answers:

III. Choose the correct statement

Question 1.

The rate of saving is low in India for the following reason

(i) Low per capita income.

(ii) Poor performance and less contribution of public sector.

(iii) Poor contribution of household sector.

(iv) Savings potential of the rural sector not tapped fully.

(a) (i), (ii), (iv) are correct

(b) (i), (ii) and (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iii) and (iv) are correct

Answer:

(c) (i), (ii), (iii) and (iv) are correct

IV. Match the following

Answer:

A. (iii)

B. (iv)

C. (v)

D. (i)

E. (ii)

V. Give Short Answer

Question 1.

Define National income

Answer:

National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. National Income is also known as Gross National Product or GNP or National Dividend.

Question 2.

What is meant by Gross Domestic product?

Answer:

The Gross Domestic product is the market value of all the goods and services produced in the country during a time period.

Question 3.

Write the importance of Gross domestic product.

Answer:

The GDP is one of primary indicators used to measure the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy.

Question 4.

What is Per-Capita Income?

Answer:

Per-Capita Income is an indicator to show the living standard of people in a country. It is obtained by dividing the National Income by the population of a country. It is also called as output per person of an economy.

Question 5.

Define the value added approach with example.

Answer:

In the value added approach, the value added by each intermediate good is summed to estimate the value of the final goods. Take example of a cup of tea which is a final good. The goods used to produce it are – tea powder, milk and sugar. These things (goods) are ‘intermediate goods’ since they form a part of the final good, i.e., the cup of tea. Each intermediate good the tea powder, milk and sugar, adds value to the final output, the cup of tea.

Question 6.

Name the sectors contribute to the GDP with examples.

Answer:

The three sectors that contribute to the GDP are primary sector (or) Agricultural Sector, Secondary Sector (or) Industrial Sector, Tertiary Sector (or) Service Sector. Eg: Agricultural based allied activities. Farm, fishing

Mining and Foresty – Primary sector.

Major Industries and small scale Industries – Industrial sector.

Transport and Communication, Post and Telegraph, Banking, Education, Entertainment, Health care and Information Technology.

Question 7.

Write the sector wise Indian GDP composition in 2017.

Answer:

Question 8.

What are the factors supporting to develop the Indian economy?

Answer:

Factors supporting to develop the Indian economy :

A fast growing population of working age.

India has a strong legal system and many English language speakers

Wage costs are low here.

India’s economy has successfully developed highly advanced and attractive clusters of business in the technology space.

Question 9.

Write the name of economic policies in India.

Answer:

Agricultural Policy, Industrial Policy, New Economic Policy, Domestic Trade Policy, International Trade Policy, Employment Policy, Currency and Banking Policy, Fiscal and Monetary policy, Wage Policy, Population policy.

Question 10.

Write a short note:

1) Gross National Happiness (GNH)

2) Human Development Index (HDI)

Answer:

1) Gross National Happiness or GNH is a global indicator of progress, which measures both sustainable economy and social developments, while protecting the environment and culture:

2) The Human Development Index or HDI is a statistic composite index of life expectancy, education and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher and the gross national income or GNI per capital is higher.

VI. Write in detail answer

Question 1.

Briefly explain various terms associated with measuring of National Income.

Answer:

(i) Gross National Product (GNP): It is the total value of goods and services produced and income received by the domestic residents of a country. It includes profit earned from capital invested abroad.

GNP = C + I + G + (X – M) + NFIA

(ii) Gross Domestic Product (GDP): It is the value of output of goods and service produced by the factors of production within the Geographical boundaries of a country.

GDP = GNP – NFIA

(iii) Net National Product (NNP): It is arrived by deducting Depreciation value from the Gross National Product.

NNP = GNP – Depreciation

(iv) Net Domestic Product ( NDP): It is arrived by deducting the value of depreciation from the Gross Domestic Product.

NDP = GDP – Depreciation

(v) Per-Capita Income: It is obtained by dividing the National Income by the population of a country.

PCI = N.I / population

In the above context,

C – Consumption expenditure

I – Investment expenditure

G – Government expenditure

NFIA – Net Factor Income earned from Abroad

Depreciation – Wear and Tear expenses

(vi) Personal Income: It is the total money income received by all the individual of a country from all possible sources before direct taxes.

PI = NI Corporate Income Taxes – Undistributed Corpo – rate profit – social security Contribution + Transfer payment

(vii) Disposable Income (DI): It means the actual income which can be spent on consumption by the people of the country.

DI = PI – Direct taxes

Question 2.

What are the methods of calculating Gross Domestic Product?

Answer:

Methods of calculating Gross Domestic Product or GDP:

Expenditure Approach – In this method, the GDP is measured by adding the expenditure on all the final goods and services produced in the country during a specified period.

Income Approach – This method looks at GDP from the perspective of the earnings of the men and women who are involved in producing the goods and services.

Value-added Approach – In the value – added approach the value added by each intermediate good is summed to estimate the value of the fiscal good. The sum of the value added by all the intermediate goods used in productions gives us the total value of the final goods produced in the economy.

Question 3.

Write about the composition of GDP in India.

Answer:

The composition of GDP in India include three sectors which are listed as

(i) Agricultural Sector

(ii) Industrial Sector

(iii) Service Sector.

(i) Agricultural Sector: It is also known as primary sector. Agricultural activities, Agricultural based allied activities, cattle farm, fishing, mining, forestry, mining are all included in this sector. Their total production is the pirimary sector contribution to India’s GDP.

(ii) Industrial Sector: It is also known as secondary sector. Production of goods using raw materials in the form of either Small Scale Industries, or Large Scale Industries like Iron and steel, Automobiles etc., are included in this sector. Their total production is the secondary sector contribution to India’s GDP.

(iii) Service Sector: It is also known as Tertiary sector. It includes Government, transport and communications, Scientific Research, Post and telegraph, trade, Banking, Education, Entertainment, Health care and Information Technology’ in this sector. Their total production is the service sector contribution to India’s GDP.

Sector-wise contribution of GDP (2018 – 19)

Agricultural Sector – 14.39 %

Industrial Sector – 31.46%

Sen/ice Sector – 54.15%

Question 4.

Write the differences between the growth and the development.

Answer:

Question 5.

Explain the Developmental path based on GDP and employment.

Answer:

Developmental path based on GDP and employment

In the development path of India, at first undertook the policy of closed trade. It means that trade and interaction with the outside world remained limited.

In 1991, India finally decided to open its borders to free trade and liberalised its economy by allowing foreign companied to enter the Indian economy.

A thrust was given to employment generation under the Five Year Plans. Rural development was also given importance in India.

The public sector was given significant importance. Private companies and industries were subject to strict regulations and standards. It was believed that the Government was the sole protector of the people and would work towards social welfare.

India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita income and a reduction in absolute poverty. Per capital incomes have doubled in 12 years

Question 6.

Explain the following policies.

Answer:

Agricultural Policy: It means a set of decisions and actions taken by the government relating to domestic agriculture and imports of agricultural products.

The policy mainly focus on the following areas:

(a) Risk Management and Adjustment

(b) Economic Stability

(c) Natural Resources

(d) Environmental Sustainability

(e) Research and Development

(f) Market for domestic agricultural commodities

In general, the agricultural policy includes Price policy, Land Reform policy, Green Revolution, Irrigation policy, Food policy, Labour policy and co operative policy.

Industrial policy: It means a set of decisions taken by the government relating to industrial sector, domestic production, trade, self-sufficiency and modernisation.

The policy mainly focus on the following areas:

Employment generation

Utilisation of Natural resources

Boosting the other sector development

Research and Development

Modernisation

Environmental protection

Trade

Development of small scale industries.

In general, the Industrial policy include Textile Industry policy, Sugar industry policy, Price policy, Small scale industries policy, Industrial Labour policy.

New Economic Policy: The New Economic Policy was introduced in 1991 which includes LPG. LPG refers to Liberalisation, Privatisation and Globalisation. Therefore the policy is called LPG model.

The main objective of this model was to make the economy of India, the fastest developing economy of the world to become equal to the biggest economies of the world. Definitely, this model had influenced India’s Economic growth and development.

VII. Activity and Project

Question 1.

Students are collect the Gross Domestic Product datas of Tamilnadu and compare the other state of Karnataka and Kerala’s GDP.

Answer:

Tamil Nadu, Karnataka, Kerala GDP are called SGDP- State Gross Domestic Product. This comparison help us to understand, the performance of each state and comparatively which state has performed better. Given here, is a sample of the activity and students should elaborate it and make it as perfect project.

[For refer Table – 12 CSO – Central Statistical Organisation, New Delhi ]

Question 2.

Students are collect the details of Employment growth of Tamilnadu.

Answer:

The Employment Growth of Tamil Nadu refers to the rate of growth of work force or labour force of the state. The students should understand that this can be compared between the two Census (2001 and 2011).

The state of TamilNadu total population grew from 62.41 million in 2001 to 72.15 million in 2011.

Between these two Censuses, the total number of workers in the slate increased by 1.18% that is from 27.88 million to 32.88 million.

Among the districts work participation is the lowest at 36.3% in Kanyakumari despite the fact it has high literacy level. It is nigh in Erode with 53.1% as per 2011 Census.

Taking the above given sample information, students should, do activity considering the labour force participation men. women ratio scpaiaiciy.

Important Questions and Answers

I. Choose the correct answer

Question 1.

‘Your mother is cooking’- In this statement, cooking is …………………

(a) Good

(b) Service

(c) Both (a) and (b)

(d) None

Answer:

(b) Service

Question 2.

‘Economic growth is one aspect of economic development’. Who said it?

(a) Amarthya Sen

(b) Manmohan Singh

(c) Mehabub ul Haq

(d) Ramachandra Guha

Answer:

(a) Amarthya Sen

Question 3.

Goods and Service has a market …………………

(a) value

(b) price

(c) Both (a) and (b)

(d) to fix a price

Answer:

(c) Both (a) and (b)

Question 4.

Which one of the following is not an example of tertiary sector?

(a) Communication

(b) Banking

(c) Transport

(d) Forestry

Answer:

(d) Forestry

Question 5.

The intermediate Goods value are indirectly included in the measurement of …………………

(a) GDP

(b) GNP

(c) SGDP

(d) NDP

Answer:

(a) GDP

Question 6.

GDP of a country can be calculated by ……………..

(a) 2 Approach

(b) 3 Approach

(c) 4 Approach

Answer:

(b) 3 Approach

Question 7.

The ………………… value is derived from the price at which the Goods and Services are sold in the market.

(a) currency

(b) frequency

(c) Nation’s

(d) Trade

Answer:

(a) currency

Question 8.

National Income is otherwise called as ……………..

(a) Real Income

(b) Money Income

(c) Gross National Product

Answer:

(c) Gross National Product

Question 9.

Imagine your father knows book binding technique and after you get new books for this year, he bounded and gave you. Whether binding charges are included on the GDP?

(a) Included

(b) Partially Included

(c) Not included

(d) Both (a) and (b)

Answer:

(c) Not included

Question 10.

The method by which we arrive at National Income in India is …………..

(a) Product method

(b) Expenditure method

(c) Product and Income method

Answer:

(c) Product and Income method

Question 11.

If the ………………… goods are included in the GDP, it will result in Double counting.

(a) Final

(b) Intermediate

(c) Import

(d) Export

Answer:

(b) Intermediate

Question 12.

Commonly, National Income is called as …………………

(a) GNP

(b) GDP

(c) NNP

(d) PCI

Answer:

(a) GNP

Question 13.

………………… is also called as National Dividend.

(a) GNP

(b) GDP

(c) NNP

(d) NFIA

Answer:

(a) GNP

Question 14.

GNP ………………… net factor from abroad.

(a) Excludes

(b) includes

(c) Sums up

(d) (a) and (c)

Answer:

(d) (a) and (c)

Question 15.

GDP ………………… net factor income from abroad.

(a) Excludes

(b) includes

(c) Sums up

(d) (a) and (c)

Answer:

(a) Excludes

Question 16.

GNP minus depreciation gives …………………

(a) NDP

(b) NNP

(c) GDP

(d) NFIA

Answer:

(b) NNP

Question 17.

NDP is the value of depreciation excluded from …………………

(a) GDP

(b) NNP

(c) NFIA

(d) (X-M)

Answer:

(a) GDP

Question 18.

………………… denotes the standard of living of the people.

(a) NNP

(b) NDP

(c) PCI

(d) NFIA

Answer:

(c) PCI

Question 19.

………………… represents all sources of income excluding direct taxes.

(a) GNP

(b) PCI

(c) PI

(d) DI

Answer:

(c) PI

Question 20.

Personal income minus direct taxes will give …………………

(a) DI

(b) DPI

(c) PI

(d) both (a) and (b)

Answer:

(d) both (a) and (b)

Question 21.

The quarterly GDP estimates for the ………………… quarter includes months January, February and March.

(a) first

(b) second

(c) third

(d) fourth

Answer:

(d) fourth

Question 22.

The quarterly GDP estimates of the month July, August and September includes ………………… quarter.

(a) first

(b) second

(c) third

(d) fourth

Answer:

(b) second

Question 23.

The first quarter of the GDP estimates includes the months …………………

(a) Jan, Feb, March

(b) July, Aug, Sep

(c) April, May, June

(d) Oct, Nov, Dec.

Answer:

(c) April, May, June

Question 24.

October, November, December, months are included in ………………… quarter estimates of GDP.

(a) first

(b) second

(c) third

(d) fourth

Answer:

(c) third

Question 25.

The modern concept of GDP was first developed by Simon Kuznets in the year …………………

(a) 1930

(b) 1932

(c) 1933

(d) 1934

Answer:

(d) 1934

Question 26.

There are ………………… methods to calculate GDP.

(a) 4

(b) 3

(c) 6

(d) 1

Answer:

(b) 3

Question 27.

The prices paid to the factors of production are included in the ………………… approach

(a) Income

(b) Expenditure

(c) Value added

(d) None

Answer:

(a) Income

Question 28.

………………… helps in the estimation of purchasing power.

(a) GNP

(b) GDP

(c) NDP

(d) NNP

Answer:

(b) GDP

Question 29.

Adding up all the expenditures incurred in a country during a specific period of time is called ………………… method.

(a) Income

(b) Expenditure

(c) Value added

(d) None

Answer:

(b) Expenditure

Question 30.

GDP measures only the quantity but not …………………

(a) quality

(b) price

(c) market value

(d) trade

Answer:

(a) quality

Question 31.

There are ………………… sectors in an economy.

(a) one

(b) two

(c) three

(d) four

Answer:

(c) three

Question 32.

India is the ………………… largest producer of agricultural products.

(a) first

(b) second

(c) third

(d) fourth

Answer:

(b) second

Question 33.

Amartya Sen is an ………………… Economist.

(a) American

(b) Australian

(c) Indian

(d) Pakistani

Answer:

(c) Indian

Question 34.

The key parameters of economic growth of an economy are its GDP and ………………… which helps in measuring the actual size of the economy.

(a) GNP

(b) NFIA

(c) Depreciation

(d) PCI

Answer:

(a) GNP

Question 35.

The GDP of India is ………………… million United States dollars.

(a) 19.3

(b) 2.8

(c) 3.6

(d) 7.8

Answer:

(b) 2.8

Question 36.

The GDP of United States is ………………… million.

(a) 19.3

(b) 2.8

(c) 3.6

(d) 7.9

Answer:

(a) 19.3

Question 37.

India is ranked ………………… in Globe as regard to GDP.

(a) fourth

(b) fifth

(c) sixth

(d) third

Answer:

(c) sixth

Question 38.

United States is ranked ………………… in Globe as regard to GDP.

(a) third

(b) fourth

(c) second

(d) first

Answer:

(d) first

Question 39.

Economic Growth is ………………… in nature.

(a) quantitative

(b) qualitative

(c) both (a) and (b)

(d) peculiar

Answer:

(a) quantitative

Question 40.

Economic ………………… is a broader concept.

(a) Development

(b) Growth

(c) Project

(d) None

Answer:

(a) Development

Question 41.

………………… helps to measure the real development of an economy.

(a) GDP

(b) HDI

(c) GNHI

(d) NNP

Answer:

(b) HDI

Question 42.

The concept of Economic development is mainly applicable to ………………… economies.

(a) Developed

(b) Developing

(c) Under developed

(d) Less developed

Answer:

(b) Developing

Question 43.

The concept of Economic Growth is mainly applicable to ………………… economies.

(a) Developed

(b) Developing

(c) Less developed

(d) Under developed

Answer:

(a) Developed

Question 44.

The concept of Human Development Index was put forward by …………………

(a) Amartya Sen

(b) Mahbub-ul-Haq

(c) Wangehuck

(d) Simon Kuznets

Answer:

(b) Mahbub-ul-Haq

Question 45.

The concept of HDI was first introduced at the …………………

(a) United Nations

(b) United Stated

(c) United Kingdom

(d) UAE

Answer:

(a) United Nations

Question 46.

The concept of HDI was introduced in the year

(a) 1960

(b) 1970

(c) 1990

(d) 1980

Answer:

(c) 1990

Question 47.

India lies in ………………… Human Development Index Category.

(a) High

(b) Low

(c) Medium

(d) Very Low

Answer:

(c) Medium

Question 48.

India’s HDI value for 2017 is …………………

(a) 0.001

(b) 0.540

(c) 0.640

(d) 0.340

Answer:

(c) 0.640

Question 49.

When a country’s HDI increases, it removes the country from …………………

(a) Development

(b) Poverty

(c) Trade disputes

(d) Stagnation

Answer:

(b) Poverty

Question 50.

GNHI is a philosophy that guides the government of …………………

(a) America

(b) Nepal

(c) Bhutan

(d) India

Answer:

(c) Bhutan

Question 51.

Co-operative policy is a part of ………………… policy.

(a) Agriculture

(b) Industry

(c) NEP

(d) Wage

Answer:

(a) Agriculture

Question 52.

The city ………………… has emerged as a hub for global software business today.

(a) Chennai

(b) Mumbai

(c) Bangalore

(d) Calcutta

Answer:

(c) Bangalore

Question 53.

The structural reforms brought in India recently are …………………

(a) GST

(b) Demonetisation

(c) Both (a) and (b)

(d) None

Answer:

(c) Both (a) and (b)

Question 54.

The measure of the value of goods and services produced in an area, industry (or) sector of the economy is called …………………

(a) GDP

(b) GNP

(c) GVA

(d) NDP

Answer:

(c) GVA

Question 55.

According to IMF, India is ………………… fastest growing nation of the World.

(a) 3rd

(b) 2nd

(c) 4th

(d) 5th

Answer:

(d) 5th

II. Fill in the blanks

In order to know the performance of India, one should know the ………………. of our country.

Goods are difference from ……………….

Services are ……………….

The GDP is the ………………. value of final goods and services produced in the country.

The price at which the goods are sold in the market is called ……………….

The GDP is measured in terms of ………………. value of our country.

“The final goods and services will not be a part of other goods and Services”, said by ……………….

The goods that are used in the production of other goods are called as ………………. goods.

If the intermediate goods are included in the GDP, then it will result in ……………….

Commonly National Income is called as ……………….

National Income (or) GNP is also called as ……………….

Profits earned from abroad is ………………. with GDP to get GNP.

If the total value of goods and services are calculated within the geographical boundary of a country it is called

The process of loosing the value of anything is called as ……………….

The Income of individuals from all sources before payment of taxes is called as ……………….

Personal income minus Direct taxes will give ……………….

………………. used the term Per Capita Income for the first time in 1867-68.

………………. is the name of the book written by Dadabhai Navroji.

GDP minus depreciation gives ……………….

GNP minus depreciation gives ……………….

………………. is the indicator of standard of living of people in a country.

The formulae to calculate PCI is ……………….

The cost of saree brought by your brother to your mother ………………. from China will be from India’s GDP.

My uncle sends money to his family in India from Dubai. It is included in India’s ……………….

GDP is measured both annually and ……………….

There are ………………. quarters with which GDP is measured.

January, February, March refers to the ………………. quarter of the measurement of GDP.

April to June measured as the ………………. quarter in measurement of GDP.

The path of development of India in recent years is moving from agricultural sector to ………………. sector.

Wage costs are ………………. in India.

GNHf is a philosophy instituted as the goal of government of ……………….

India is now experiencing a period of ……………….

As per HDI, India is in the ………………. human development category.

In ………………. India, opened up to free trade policy.

Economic development is a ………………. preocess.

In India, ………………. city is considered as a hub for global software businesses.

The new model of economic reforms put forward in 1991 by India is called as ………………. model.

According to IMF, GDP growth rate of India in 2018 is projected at ……………….

According to World economic outlook, India is ………………. fastest growing nation of the World.

According to IMF World Economic Outlook ………………. is in the rank as a fastest growing nation of the world.

Answers:

GDP

Services

Intangible

Market

Market value

Rupee

Tyler Cowen and Alex Tabarrok

Intermediate

Double counting

Gross National Product

National Dividend

Included

GDP

Depreciation

Personal income

Disposable income

Dadabhai Navroji

Poverty and Unemployment

NDP

NNP

Per Capita Income

N.I. / population

Excluded

GNP

Quarterly

Four

Fourth

First

Service

Low

Bhutan

Demographic transition

Medium

1991

Continuous

Bangalore

LPG

7.3%

Fifth

Bangladesh

III. Choose the correct statement

Question 1.

(i) Only the final goods are included in the GDP.

(ii) If the value of the Intermediate goods are included,, it will result in double counting,

(iii) The rupee values are desired from the prices at which the goods and services are sold in the market.

(iv) There is no sensible way to add the quantities of goods produced with those of the services produced.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iii) and (iv) are correct

Answer:

(c) (i), (ii), (iii) and (iv) are correct

Question 2.

(i) Personal income minus direct taxes gives the disposable income.

(ii) GDP of India includes the market value of all the goods and services produced in the global level.

(iii) Disposable Income minus Transfer payments plus subsidies gives personal income.

(iv) The Quantum of wear and tear expenses are called Depreciation.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iv) are correct

Answer:

(d) (i), (iv) are correct

Question 3.

(i) income methods sums up all forms of income earned by individuals who are involved in the production of goods and services.

(ii) There are several methods to calculate National income or GDP.

(iii) The Modern concept of GDP was first developed by Simon Kuznets in 1934.

(iv) The annual GDP of financial year 2017-18 will include only the goods and services produced during that financial year.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iii), (iv) are correct

Answer:

(d) (i), (iii), (iv) are correct

Question 4.

(i) GDP measures only quantity but not quality.

(ii) CSO conducts annual survey based on Indexes like Index on Industrial Production (llP) and Consumer Price Index (CPl).

(iii) High level of Per Capita real GDP will lead to low level of pollution and low suicidal rate.

(iv) India is the largest producer of agricultural products in the world.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii) are correct

(d) (i), (iii), (iv) are correct

Answer:

(c) (i), (ii) are correct

Question 5.

(i) Economic Growth is one aspect of Economic Development-Said by Economist Amartya Sen.

(ii) HDl is apt tool to measure the real development in an economy.

(iii) United States of America ranks top in the globe in terms of its GDP.

(iv) Economic development is quantitative in nature.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iii), (iv) are correct

Answer:

(b) (i), (ii), (iii) are correct

Question 6.

(i) Poverty alleviation came as a corollary of rural development.

(ii) In 2011, The UN Genera! Assembly passed Resolution Happiness towards a Holistic approach to development.

(iii) There are nine domains in GNHI

(iv) There are two structural reforms recently brought in India- demonetisation and Goods and Services Tax.

(a) (i), (ii), (iv) are correct

(b) (i), (ii), (iii) are correct

(c) (i), (ii), (iii) and (iv) are correct

(d) (i), (iii), (iv) are correct

Answer:

(c) (i), (ii), (iii) and (iv) are correct

IV. Assertion and Reason

Question 1.

Assertion (A): Economic Development is a broader concept.

Reason (R): It is long-term in nature and includes variables like removal of poverty, Rise in life expectancy rate etc.

(a) A is correct and R is the relevant explanation to A.

(b) A is correct and R is not the relevant explanation to A

(c) A is wrong, R is correct.

(d) A is wrong and R is wrong.

Answer:

(a) A is correct and R is the relevant explanation to A.

Question 2.

Assertion (A): There are two major structural reforms brought in India recently. They are demonetization and Goods and Services Tax.

Reason (R): India economy is the 5th fastest growing nation of the World.

(a) A is correct, and R is the relevant explanation to A.

(b) A is correct and R is not the relevant explanation to A

(c) A is wrong, R is correct.

(d) A and R is wrong.

Answer:

(b) A is correct and R is not the relevant explanation to A

Question 3.

Assertion (A): Intermediate goods are not counted in calculating the GDP.

Reason (R): Their value is already included in the final goods.

(a) A is correct and R is the relevant explanation to A.

(b) A is correct and R is not the relevant explanation to A

(c) A is wrong, R is correct

(d) A and R is wrong.

Answer:

(a) A is correct and R is the relevant explanation to A.

Question 4.

Assertion (A): Economic Growth is a quantitative measure.

Reason (R): It considers the increase in the output produced in an economy in a particular period of time.

(a) A is correct and R is the relevant explanation to A.

(b) A is correct and R is not the relevant explanation to A

(c) A is wrong, R is correct

(d) A and R is wrong.

Answer:

(a) A is correct and R is the relevant explanation to A.

V. Match the following

Question 1.

Match the Column I with Column II.

Answer:

A. (iv)

B. (i)

C. (v)

D. (ii)

E. (iii)

Question 2.

Match the Column I with Column II.

Answer:

A. (v)

B. (iii)

C. (vi)

D. (ii)

E. (iv)

VI. Give Short Answer

Question 1.

What is Gross Value Added?

Answer:

Gross Value Added or GVA is the measure of the value of goods and services produced in an area, industry of sector of an economy. In national accounts GVA is output minus intermediate consumption; it is a balancing item of the national accounts’ production account.

Question 2.

Distinguish between goods and services.

Answer:

Goods    Services

Goods are tangible    Services are intangible

Goods can be separated from its owner    Services cannot be separated from its owner

Eg: Table, chair, Apple etc.,    Service of a teacher, Lawyer, cook in a hotel etc.,

Goods are products    Services are activities

Question 3.

In what two ways is the GDP measured in India?

Answer:

In India GDP is measured both annualy and quarterly. The annual GDP is for a financial year which is from April 1 of one year, for example 2017 to March 31 of the next year, for example 2018.

This is written as 2017-18.

The quarterly GDP estimates are for each of the four quarters into which India’s financial year is divided.

First quarter, denoted Q1 : April, May and June .

Second Quarter – Q2 : July, August and September

Third Quarter – Q3 : October, November and December

Fourth Quarter – Q4 : January, February and March

Question 4.

What is meant by Intermediate good? Give example.

Answer:

The goods which will be used for the production of other goods are called Intermediate goods. Eg: Sugar.

Question 5.

How do you arrive at NNP?

Answer:

We arrive at the NNP by deducting the value of depreciation from Gross National Products. NNP = GNP (-) Depreciation.

Question 6.

What is meant by GVA?

Answer:

Gross Value Added is called as GVA. It is the measure of the value of goods and services produced in an area (or) sector of an economy.

GVA = GDP + Subsidies – Taxes.

Question 7.

Give examples for tertiary sector.

Answer:

Tertiary sector include Trade, Hotel industry, Transport, Storage, Communication, Finance, Insurance, Real estate, Social services, Postal and Telegraph, Banking, Education, Entertainment, Health care and Information Technology, etc.

Question 8.

What is the financial year of India?

Answer:

The financial year is the year of the calculation of GDP. In India it starts from April 1st and ends on March 31st.

Question 9.

What is Depreciation?

Answer:

Decline in the value of capital assets (machineries) due to tear and wear is measured as depreciation.

Question 10.

Write few parameters to measure economic growth?

Answer:

Human Resources, Natural Resources, Advancement in technology, Capital formation, Political and social economic factors are few parameters to measure economic growth.

Question 11.

What is Disposable Income (DI)?

Answer:

Disposable Income means actual income which can be spent on consumption by individuals and families, thus, it can be expressed as DPI = PI – Direct Taxes.

VII. Answer in Detail

Question 1.

Explain the limitations of GDP.

Answer:

(i) Non – Marketed items are left out of GDP: GDP includes only the goods and services that are sold in the market, Non-Marketed items are not included. Eg: Services provided by parents to their children, clean air has no market value (or) price. Hence it is left out of GDP.

(ii) GDP measures only quantity not quality: At times, we can see some products which are available at large quantities in the product, at a very low price. Only the quantity sold and its price is measured in GDP. Quality of the product is not taken care of.

(iii) Income Distribution: The GDP of a country may be growing rapidly. But income may not be distributed equally. This brings a lot of unequal distribution of income and wealth. GDP actually do not suggest on income distribution.

(iv) Way of life of the people: A high level of Per-Capita real GDP, may lead to a very low health condition of the people, an undemocratic political system, High pollution, High suicidal rate.

Question 2.

How are three sectors of an economy are interdependent?

Answer:

There are many activities that are undertaken by directly using natural resources, it is an activity of the primary sector.

The secondary sector covers activity in which the natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.

The third category of activities falls under tertiary sector. These activities help in the development of the primary- and secondaiy sectors. These activities by themselves, do not produce goods but they are an aid or a support for the production process, for example, transport and communication, etc.

Thus, we can clearly say tiiat the three sectors of an economy are highly interdependent.


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