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# NCERT Solutions Economics class 10 chapter 1

Class 10

NCERT Solutions for Class 10 Economics Chapter 1 provide a comprehensive introduction to the basic concepts and structures of the subject. In this chapter, students will learn about the meaning and scope of economics, the different types of economies and economic systems, and the three sectors of the economy. They will also be introduced to key concepts such as production, consumption, exchange, and distribution, as well as the four factors of production - land, labor, capital, and entrepreneurship. By the end of this chapter, students will have a solid foundation in the fundamentals of economics, which will prepare them for further learning and exploration in the subject

## NCERT Solutions Economics class 10 chapter 1

Page 16
Q1. Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above
(iv) all the above

Q2. Which of the following neighbouring countries has better performance in terms of human development than India?
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan
(ii) Sri Lanka

Q3. Assume there are four families in a country. The average per capita income of these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000 and Rs 3000 respectively, what is the income of the fourth family?
(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000
(iii) Rs 6000

Q4. What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

(1)

• In the World Development Report, 2006, the World Bank has used the criterion of average income or per capita income in classifying different countries.
• The average income or the per capita income is the total income of the country divided by its population.

(2) According to the WDR 2006, countries are classified as mentioned below :

• Rich countries : Countries with per capital income of? 4,53,000 per annum and above in 2004 are called rich countries
• Low-income countries : Countries with per capital income of? 37,000 or less are called low-income countries.
• India comes in the category of low-income countries because its per capital income in 2004 was just ? 28,000 per annum.
• Rich countries, excluding countries of Middle East and certain other small countries are generally called developed countries.

(3) Limitations of the criterion are as mentioned below :

1. It does not tell us how this income is distributed among people. A country may have more equitable distribution. People may be neither very rich nor extremely poor.
2. In another country with same average income, one person may be extremely rich while others may be very poor. So, the method of average income does not give correct picture of a country.
3.  This system hides disparities among people.

Q5. In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

1. The criterion used by World Bank: The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries.
According to the World Development Report 2006, published by the World Bank, countries with per capita income of $10066 per annum and above in 2004 are called rich or developed countries. On the other hand, countries with per capita income of$825 or less are called low-income countries.
2. The UNDP compares countries based on HDI e., on the educational levels of the people, their health status and per capital income or average income.
3. Human Development Index used by UNDP is better because it is a wider indicator in which besides per capital income, health and education are also included.

Q6. Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to the development.

NCERT Solutions Economics class 10 chapter 1- One cannot determine similarities or differences between two countries or persons or things by relying on averages alone. Comparisons based on averages can only consider one aspect such as income or size in the case of countries, or marks or participation in sports activities in the case of students. It does not take into account all aspects or achievements.

Since only one aspect is being compared, the true picture of different countries, persons or things cannot be accurately represented. For example, students may differ in height, health, talents, and interests. The healthiest student may not necessarily be the most intelligent or the top scorer in studies. Similar situations arise in the case of countries or states, where one country may excel in one field but lag behind in another.

Therefore, relying solely on averages does not provide an accurate representation of the similarities or differences between two countries, persons, or things.

Q7. Kerala, with lower per capita income, has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.
To achieve a good standard of living, income alone is not sufficient to provide access to all necessary goods and services. One's ability to purchase material goods and services is not fully indicated by income alone.

Preventive measures must be taken by the whole community in order to have a pollution-free environment in a wealthy neighborhood. It may be more beneficial to have collective services, such as security for the entire locality, rather than individual security for each household. Likewise, opening a school for the children of the entire community may be preferable to providing education for just one or two children of a wealthy individual.

Kerala's human development ranking is better than Punjab's. In Kerala, the Infant Mortality Rate is 11, compared to 49 in Punjab, despite the fact that Punjab's per capita income is higher at ? 26000, while Kerala's is ? 22800. Kerala has adequate basic health and educational facilities, which is why the Infant Mortality Rate is lower.

In some states, such as those with well-functioning Public Distribution Systems (PDS), people receive ration regularly, whereas in other states, ration shops do not function properly, and people face a shortage of grains that can affect their health. It is clear that states cannot be compared solely based on per capita income.

Q8. Find out the present sources of energy that are used by the people in India. What could be the other possibilities fifty years from now?
The present sources of energy that are used by the people of India are electricity, coal, crude oil, cowdung and solar energy. Other possibilities fifty years from now, could include ethanol, bio-diesel, nuclear energy and better utilization of wind energy, especially with the imminent danger of oil resources running out.

Q9. Why is the issue of sustainability is important for development?
Sustainable development requires meeting the needs of the present while ensuring that future generations can also meet their needs. However, since the second half of the twentieth century, several scientists have warned that current levels and types of development are not sustainable. The rapid industrialization of the world over the past century has given rise to the issue of sustainable development. The reckless exploitation of natural resources has been facilitated by economic growth and industrialization. However, the stock of natural resources is limited, and the growth of all countries is in danger if these resources are completely exhausted.

Page 17:
Q10. “The Earth has enough resources to meet the need of all but not enough to satisfy the greed of even one person.” How is this statement relevant to the discussion of development? Discuss.

The discussion of development is relevant to this statement since resources and development are interconnected. The statement suggests that the earth has adequate resources, both renewable and non-renewable, to fulfill everyone's needs if they are used efficiently. To ensure the sustainability of development, it is critical to manage resource consumption and maintenance carefully. We must use resources while also preserving and protecting our environment, ensuring a balance between resource use and development. Otherwise, development will eventually stagnate in the future.

Q11. List a few examples of environmental degradation that you may have observed around you.
Some of the examples of environmental degradation in the area are as follows :

Smoke emitted by factories and vehicles has led to an increase in air pollution. Water pollution has increased due to small factories and shops located in residential areas. Loudspeakers being used at night and the unnecessary honking of vehicle horns on roads has led to noise pollution. Garbage is often thrown wherever people want, possibly due to a lack of dustbins available on streets and roadsides. A lack of public conveniences leads to people urinating in the open on roadsides at times.

Previous Years’ Questions
1. Which one of the following countries has the largest size of the illiterate population in the age group of 15 + in the world? [CBSE (CCE) 2011]
(a) India
(b) Sri Lanka
(c) Myanmar

2. Development of a country can generally be determined by its: [CBSE (CCE) 2011]
(a) per capita income
(b) average.literacy Ieve4
(c) health status of its people
(d) none of these

3. We can obtain per capita income of a country by calculating: [CBSE (CCE) 2010]
(a) the total income of a person
(b) by dividing the national income by the total population of a country
(c) the total value of all goods and services
(d) the total exports of the country

4. Kerala has low infant Mortality Rate because: [CBSE (CCE) 2010]
(a) it has good climatic condition
(c) it has adequate provision of basic health and educational facilities
(d) it has poor net attendance ratio

NCERT Questions
5. Which of the following neighbouring countries has better performance in terms of human development than India?
(b) Sri Lanka
(c) Nepal
(d) Pakistan

6. Assume there are four families in a country. The average per capita income of these families is ₹ 5000. If the income of three families is ₹ 4000, ₹ 7000 and ₹ 3000 respectively, what is the income of the fourth family?
(a) ₹ 7,500
(b) ₹ 3,000
(c) ₹ 2,000
(d) ₹ 6,000

7. According to the World Development Report 2004, low-income countries are those which have per capita income of
(a) $900 or less. (b)$ 1000 or less
(c) $825 or less (d)$ 500 or less

8. Identify which of the following cannot be a development goal for a landless rural labourer?
(a) More days of work
(b) Better wages
(c) Quality education for children
(d) Foreign tours

9. Besides seeking more income, one way or the other, people also seek things like
(a) equal treatment
(b) freedom
(c) security
(d) all of them

10. Different persons could have different as well as conflicting notions of a country’s development. A fair and just path for all should be achieved. Interpret the concept being discussed here.
(a) Social development
(b) Cultural development
(c) National development
(d) Economic development

11. List how many tonnes of liquid toxic wastes a vessel dumped in a city called Abidjan in Ivory Coast, a country in Africa?
(a) 500 tonnes
(b) 600 tonnes
(c) 900 tonnes
(d) 1000 tonnes

12. Countries with higher income are ………….. than others with less income.
(a) Less developed
(b) More developed
(c) Less stronger
(d) More organised

13. Income of the country divided by its total population is known as
(a) Capital Income
(b) National Income
(c) Per capita income
(d) GDP

14. In the World Development Report 2006, Rich Countries were those which in 2004 had the per capita income of
(a) ₹ 2,53,000 per annum & above
(b) ₹ 14,50,000 per annum & above
(c) ₹ 4,53,000 per annum & above
(d) ₹ 13,53,000 per annum & above

15. In the World Development Report 2006, low-income countries were those which in 2004 had the per capita income of
(a) ₹ 37,000 or less
(b) ₹ 47,000 or less
(c) ₹ 50,000 or less
(d) ₹ 39,000 or less

16. In 2004, India came in the category of
(a) Rich countries
(b) Low-income countries
(c) Developed countries
(d) Medium income countries

17. Comparing all states, identify the state which had the highest per capita income in 2002 – 2003.
(a) Kerala
(b) Punjab
(c) Delhi
(d) Bihar

18. Which state had the least per capita income in 2002-03?
(a) Bihar
(b) Rajasthan
(c) Kerala
(d) Delhi

19. Number of children that die before the age of one year as a proportion of 1000 live children born in that particular year is known as
(a) Death rate
(b) Survival rate
(c) Infant mortality rate
(d) Life death rate

20. Proportion of literate population in the 7 and above age group is called as
(a) Knowledge rate
(b) Literacy rate
(c) Attendance rate
(d) Excellence Rate

21. Which age group of children is included for calculating Net Attendance Ratio?
(a) 6 – 10
(b) 7 – 11
(c) 5 – 9
(d) 10 – 15

22. In 2003, Infant Mortality Rate in Kerala was
(a) 49
(b) 11
(c) 60
(d) 22

23. For the year 1995 – 96, the Net Attendance Ratio for class I to V in Bihar was
(a) 81
(b) 51
(c) 41
(d) 31

24. Literacy rate for the rural male population of Uttar Pradesh is
(a) 62 %
(b) 59 %
(c) 52 %
(d) 42 %

25. For calculating Body Mass Index (BMI), the weight of the person is divided by the
(a) Square of the weight
(b) Square of the height
(c) Square root of the height
(d) Square of the sum of height and weight

26. If BMI is less than 18.5 then the person would be considered
(a) overweight
(b) long height
(c) under nourished
(d) short height

27. Report published by UNDP which compares countries based on the educational levels of the people, their health status and per capita income is
(a) Human Education Report
(b) Human Development Report
(c) Human Population Report
(d) Human Quality Report

28. HDI Rank of India in the world out of 177 countries in 2004 was
(a) 93
(b) 126
(c) 130
(d) 125

29. India’s per capita income in US \$ is …………… Sri Lanka (in 2004)
(a) less than
(b) more than
(c) equal to
(d) less than or equal to

30. Nepal has nearly ……………. the per capita income of India (in 2004)
(a) one – fourth
(b) three – fourth
(c) equal
(d) half

31. What proportion of the country is overusing their groundwater reserves?
(a) One – Fourth
(b) One-Tenth
(c) One – Third
(d) half

32. Resources which will get exhausted after years of use is called ……………
(a) Renewable resources
(b) Non – durable resources
(c) Non – renewable resources
(d) Competing resources

Below are the answers to multiple choice questions-NCERT Solutions Economics class 10 chapter 1