AP Inter 2nd Year Economics Model Paper Set 3 with Solutions

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers Set 3 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Model Paper Set 3 with Solutions

Time: 3 Hours
Maximum Marks: 100

Section – A (3 × 10 = 30)

Note :

• Answer any THREE of the following questions in 40 lines each.
• Each question carries 10 marks.

Question 1.
Explain the characteristic features of developed countries.
Answer:
The developed countries are also referred to as high income countries, industrialised countries and advanced countries. USA, UK, France, Germany, Canada, Japan are some of the developed countries.

1) High per capita income: The income per head per year is called per capita income. The main feature of the developed countries is high per capita income.

The per capita GNI of developed countries is far higher than the per capita GNI of the developing countries like India and China. In the year 2012 the per capita GNI of U.S.A ($ 50.120) at official exchange rate was nearly 33 times and at purchasing power parity ($ 50.610) was 13 times that of India ($ 1.530). So there are high difference in the per capita incomes of developed and developing countries.

2) Importance of Non-agricultural sectors : The developed economies are non-agriculture in nature. The industry and service sectors are well developed in these economies. The contribution of these sectors to income and the employment generation is very high when compared to the agriculture sector.

The developed countries are industry and service sector oriented whereas the developing countries still depend on the agriculture sector. In the USA the proportion of people engaged in agriculture sector is just 1.6 percent and its contribution to GDP is 1.3 percent.

3) Abundance of capital and technology : The most important feature of developed countries is high rate of capital formation and wide spread use of modern and sophisticated technology. As the developed countries are high income countries their capacity to save is also very high. The banking system and financial institutions efficiently mobilize the savings.

4) Low level of unemployment : The unemployment in the developed countries is caused by the shortage of effective demand. The unemployment in these economies is cyclical and frictional.

The rate of unemployment is marginal and the skills and mobility of labour are higher in the developed countries.

5) Better quality of life : A better quality of life is ensured in the developed countries due to the effective social security system, better compliance of pollution standards, availability of safe drinking water, well organized health care system and sanitation. The expenditure on education, research, training, skill formation and health is more in these countries.

Question 2.
Explain the role of education in economic development.
Answer:
The expenditure on education in India is not considered an investment. Most of the people and particularly the decision makers in government think that education is just a social service and is meant only to improve the quality of man’s life. The importance of education in production is rarely recognized.

Role of Education in Economic development:
1. Education and Economic growth : According to Todaro and Smith, education contributes to economic growth in the developed and developing countries in the following way.

• It helps in creating a more productive labour force and endowing it with increased knowledge and skills.
• It helps in providing wide spread employment and income earning opportunities when more schools, colleges and universities come in to existence.
• It helps in providing basic skills and encourages modern attitudes in the diverse segments of the population.

2. Education and Reduction in Income Inequalities: Though the linkages between education and economic growth are very much in evidence in both, developed and developing countries, those between education and reduction in income inequalities and poverty are difficult to establish.

Despite universal education and educational reforms carried out by the Governments, it is rich and middle income groups that have benefited most. This is due to the reason that the institutional and social structure within which the educational system has to function is unegalitarian and perpetuates inequalities. The childhood of the poor children is characterized by poor nutrition and illiterate home environment which has negative mental effect. Even if they are able to complete their education, they find it difficult to procure jobs which are covered by children belonging to the relatively rich classes on account of the better social contacts and influences.

3. Education and Rural Development : Education can contribute significantly to rural development in variety of ways. By widening the horizons of knowledge of the rural people, it can enable them to overcome ignorance and superstitions. Adoption of new agricultural techniques and new methods of production is rendered easier if the farmers are educated. Education can be oriented as to import skills such as health and nutrition, and improvement, family planning and child care etc. In labor surplus economies like India, education can help rural people in acquiring skills to set up cottage industries on their own so that, the disguised unemployed people can be faithfully employed in the villagers themselves.

4. Education and Family planning : Education helps in modernizing and revolutionizing the way of thinking of the people. It enlightens them of the need to improve their standards of living and for purpose to restrict the size of their families. Therefore, education serves as the best method of their families also as more and more women become literate and seek employment, the fertility rates show a tendency to decline because up bring of children is a comparatively a difficult task for working women.

5. Other benefits of Education :

• The current spillover income gains to persons other than those who have received extra education.
• The spillover income gains to subsequent generations from a better educated present generation.
• The supply of convenient mechanism for discovering and cultivating potential talents.
• The meeting of the skilled man power requirements of growing economy.
• The provision of an environment that stimulates research in science and technology.
• The tendency encourages lawful behaviour and promotes voluntary responsibility for welfare activities.
• The tendency to foster political stability by developing an informed electorate and competent political leadership.
• The supply of certain measures of “Social control” by the transmission of common cultural heritage.
• The enhancement of the enjoyment of leisure by widening the intellectual horizons of both the educated and the uneducated.

Question 3.
What are the causes for unemployment and remedical measures to reduce unemployment ?
Answer:
A man is willing to work but he is not getting work. Therefore he is called unemployed. Unemployment is too serious an evil to be ignored. Widespread and growing unemployment is not due to any single factor.

1) Rapid rate of population growth : The most fundamental cause of widespread unemployment in India is the rapid rate of population growth which leads to increase in labour force. The rate of population growth rose to 2.2 percent per annum during the 1960s. As the population increased from 718.2 millions in 1983 to 1227.4 millions in 2011 – 12, corresponding the labour force also increased from 261.33 millions to 440.4 millions respectively. This is too big a number to be provided gainful employment at the present rate of growth of the economy.

2) Jobless growth : During the first three decades of economic planning, the GDP growth rate was as low as 3.5 percent per annum. In this period, employment increased at a moderate rate of 2 percent per annum. The rate of growth of employment picked up considerably to 2.90 percent per annum during the five year period 1990 – 00 to 2004 – 05 but again declined to almost zero present over the next five years i.e., from 2004 – 05 to 2009 – 10. Thus, the country could create only one million jobs during 2004 – 05 to 2009 – 10.

3) Inappropriate Technology : In India, while capital is a scarce factor, labour is available in abundant quantity. Under such circumstances, if market forces operate freely and efficiently, the country would have adopted labour – intensive techniques of production.

4) Lack of Rural Industrialization : With regard to large rural unemployment and under employment, the underlying cause is the very heavy pressure of population on land and the backward nature of our farming. As a result, agriculture cannot provide employment opportunities for the far too numerous rural population.

5) Inappropriate Educational system : The educational system in India is defective. According to Gunnar Myrdal, India’s educational policy does not aim at development of human resources. It merely produces clerks and lower cadre executives for the government and private concerns. Any educational system which fails to develop human resources properly will not be able to provide employment to all those who have received it.

6) Lack of Manpower planning : The intake into various courses is not being plannned on the basis of the projections of the demand for skilled manpower in future.

7) Social factors : Since Independence, education among women has changed their attitude towards employment. Many of them now compete with men for jobs in the labour market. The economy has, however failed to respond to these challenges the net result is continuous increase in unemployment backlog.

8) Lack of self-employment opportunities : The rural marginal and landless households continue to remain unemployed (or)underemployed due to lack of self-employment. The well educated youth lacking entrepreneurship qualities waiting for years together to get government jobs at meager wages.

9) Decline of cottage industries : In rural India, village (or) cottage industries are the only means of employment particularly of the landless people. They depend directly on various cottage industries for their livelihood. But, now-a-days, these are adversely affected the industrialisation process.

Question 4.
What are the causes for small size of land holding in India mention the problems of small holdings ?
Answer:
Small size land holdings adversely affect the productivity of agriculture. The following are the causes for low productivity in agriculture.

1) The law of inheritance : The system of inheritance is causing for division and fragmentation of land holdings. According to the law of inheritance children have an equal share in father’s property. Both the sons and daughters have equal share in father’s property either in Hindu Law or in Mohammedan Law. Consequently the division and fragmentation of land holdings are taken place.

2) Pressure of population : The population of India is growing at a faster rate of 1.64 percent per annum. While land under agriculture has increased only marginally. Because of the unsatisfactory expansion of the non-agricultural sector and its inability to absorb the growing population led to subdivision of land holdings.

3) Decline of joint family system : All the family members live together under the joint family system and this kept the land holding intact. As a result, subdivision and fragmentation of land holdings are taken place.

4) Farmers indebtedness : Most of the farmers in India are neck – deep in indebtedness. Frequently they are forced to sell off parts of their land to pay off the debts. It is observed that many money lenders in villages adopt unfair methods of lending and trap the illiterate peasants with a view keeping in mind to grab their lands. Thus the land continues to get subdivided and fragmented.

5) Land hunger : In India of rural area are fond of land because of psychological, sentimental, social and economical attachments to land. Generally people in rural areas feel having land as a matter of prestige and social symbol. This sort of . attachment with land is called “Land Hunger”. Because of this land hunger peasants are reluctant to leave their land even though it is uneconomical.

6) The decline of handicrafts : Decline of village handicrafts is an another important historical factor for the small sized holdings in our country. Those handicrafts had provided employment and a source of livelihood to the artisans. As a result of competition from machine made goods these artisans left their ancestral occupations and they were forced to depend on agriculture. Hence, this further increased subdivision and fragmentation.

Problems of fragmentation of Land holdings : Small and fragmented land holdings impede agricultural progress. The following are the main disadvantages of subdivision and fragmentation.

1) Wastage of land : Because of subdivision and fragmentation, the size of plots becomes so small. In Ratnagiri district of Maharashtra land holdings were often as small as 0.006 acres. It is not possible to cultivate on them. In addition to such wastage, another 3 to 5 percent of land is wasted in drawing boundaries, hedges, pathways etc.

2) Supervisory problems : In general, agricultural activities are seasonal in nature. It is too difficult to supervise simultaneously the agricultural activities on scattered land holdings in various parts of the village. Hence, the productive efficiency will decline and the productivity will also be affected adversely.

3) Difficulties in modernisation : Small size land holdings are not suitable for mechanization. The small peasants are not able to invest on costly equipments like tractors, electric motors, sprayers, drillers, harvesting machines etc. There is no possibility to implant new technology to improve agricultural productivity in small holdings.

4) Disputes over boundaries : Disputes over boundaries, hedges, pathways, theft of crops, grazing by animals belonging to other villages etc., are very common in villages. These litigations lead to court causing wastage of valuable time and money. All these incidents disturb the rural atmosphere.

Question 5.
Critically evaluate the 1991 new industrial policy resolution of India.
Answer:
Industrial policy statement 1991 brought rapid structural changes in the economy of India. Most of the State owned units were running with huge losses. Government was not interested to run the state owned units. So as part of economic reforms generally known as liberalization, privatization, globalization and a new industrial policy became inevitable.

Objectives :
a) To build on the going already made in the industrial sector.
b) To correct the distortions or weakness that may creep in the pattern of industrial growth.
c) To maintain a sustained growth in productivity and gainful employment and
d) To attain technological dynamism and international competitiveness.

Main features: In order to explore and exploit the industrial potential of the country, the following decisions,
a) Delicensing :
i) Industrial licensing will be abolished for all projects except for these which are important for security, strategic, social and environmental reasons and items of elite’s consumption. License is not necessary for the items produced in small scale sector. License is required to establish the following industries viz, coal, petroleum, motor cars, alcoholic drugs, cigars, industrial explosives, hazardous chemicals.

ii) Reservation for the public sector : Establishment of key and strategic industries reserved for public sector are arms and ammunition, defense equipment, atomic energy, mineral oils, railway transport.

iii) Automatic clearance of capital goods : The Government permits imports of capital goods like machinery, without any conditions if the foreign exchange needed for the imports is met from foreign equity capital.

iv) Location policy : In locations other than cities of more than one million population, there will be no requirement of obtaining industrial approvals from the Central Government except for industries specified in Annexure II originally. In cities with a population of more than 1 million, industry other than those of a non-polluting in nature, were required to be located outside 25 kilometers of the periphery.

v) Abolition of convertibility clause : The mandatory convertibility clause will no longer be applicable for term loans from the financial institutions for new projects. This has provided them an option of converting part of their loans into equity, if felt, necessary by their management.

b) Foreign investment policy: According to the new industrial policy approval will be given for direct foreign investment up to 51 percent foreign equity in high priority industries. FDI is prohibited only in the following sectors in 1991 industrial resolution.

They are

1. Retail trading
2. Atomic energy
3. Lottery business
4. Gambling and betting

c) Foreign technology agreement : Automatic approval for technology agreements in high priority industries should be given. No permission will be necessary for hiring of foreign technicians and foreign testing of indigenously developed technologies.

d) Public sector policy : Public sector will not be barred from entering areas are not specifically reserved for it. Board for Industrial and Financial Reconstruction (BIFR) is constituted to undertake the revival of sick public units and to protect the interest of workers affected by rehabilitation.

e) MRTP ACT : The conditions in the Monopoly Restrictive – Grade Practices (MRTP) Act that monoploies should get prior approval of the Government for expansion, for establishment of new undertakings merger, amalgamation, take over and appointment of directors will be removed. The Act will concentrate more on controlling unfair or restrictive trade practices.

Section – B (8 × 5 = 40)

Note :

• Answer any EIGHT of the following questions in 20 lines each.
• Each question carries 5 marks.

Question 6.
Explain the determinants of economic development.
Answer:
Economic development is a complex process. It is influenced by both economic and non-economic factors. Broadly the factors determine economic development are classified as follows.

1) Natural resources : The development of any country on the availability of natural resources. Jacob Viner, William. J.Baumol and W.A. Lewis attached great importance to natural endowments of a country for its development. The availability of quality and quantity or size of the natural resources can induce the development of agriculture and industrialisation.

2) Economic factors :
(a) Capital formation : Economic development depends on capital formation. Capital formation depends on savings. It enlarges a country’s capacity to produce goods. Capital formation helps the formation of sound infrastructure.

(b) Marketable surplus : Marketable surplus raises the incomes in the rural areas which in turn stimulates the demand for goods and services. So the development of other sectors in an economy depends on the marketable surplus.

(c) Foreign trade : Foreign trade helps the countries to increase the production of goods and services through division of labour and specialisation. It will expand the output and employment in the economy. It also facilitates the developing countries to import capital, technology from the developed countries.

3. Non-economic factors :
(a) Human resources : Population is an important factor in economic development. If a country can manage to use its man ppwer properly. But in case, human resources remain either unutilised or underutilised it will be a burden on the economy.

(b) Technical progress : Technology plays an important role in the economic development. The use of modem and sophisticated, technology enhances the productivity and production is all sectors of the economy. It minimizes the cost of production.

Political freedom : Majority of the developing countries were under the British rule in the past. After they got independence all these countries have initiated planning strategy to achieve faster economic development. Hence political freedom is necessary to take strong and independent decisions regarding the development process.

Social organisation : Development process requires the active participation of all sections of people in a country experiences suggest that the defective social organisation helped the rich to garner the benefits of development. This has led to wide spread disparities among the people.

Corruption : The rampant corruption at various levels in the developing countries has become a negative factor in the process of development.

The factors like tax evasion, misappropriation of public funds and connivance of the officials are the major hindrances in the way of development.

Desire to develop : The development process in any country depends on the people desire to develop. According to Richard T. Gill “Economic development is not a mechanical process. It is a human enterprise. It’s outcome will depend on the skill, quality and attitudes of the people”.

Question 7.
Top 10 populous countries in the world.
Answer:
The following shows that the list of top 10 populous countries in the world.

S.No.	Country	Population (in crores Approx)	Population (in crores Approx)
1	China	134	134
2	India	121	121
3	United states	31	31
4	Indonesia	23	23
5	Brazil	19	19
6	Pakistan	17	17
7	Nigeria	16	16
8	Bangladesh	15	15
9	Russia	14	14
10	Japan	12	12

Question 8.
What are the different types of unemployment ?
Answer:
Types of unemployment: Unemployment is broadly defined into two types.
A) Unemployment in Urban areas and
B) Unemployment in Rural areas.

A) Unemployment in Urban areas :
i) Educated unemployment: The large number of educated unemployed shows, “a measurement between the kind of job opportunities that are needed and that are available in the job market”. The defective educational system, with its theoretical base, lack of aptitude and technical qualifications for various types of working among job-seekers and Maladjustments between demand on supply of education workers are some well-known causes of educated unemployment.

ii) Industrial unemployment : In India, the manufacturing sector has indeed expanded and employment in it has steadily increased. One of the reasons for this is the low employment elasticity in the manufacturing sector. As a result, industrial unemployment increased.

B) Unemployment in Rural areas :
i) Seasonal unemployment : If in agriculture is a normal phenomenon in India. In India farmers cultivating approximately 75 percent of their and remain involuntarily un- employed for 3 to 4 months in a year and most of them fail to find some temporary employment in this period. The main reason for its unemployment is lack of irrigation facilities.

ii) Disguised unemployment : Indian agriculture is characterized by the existence of considerable amount of surplus labour. In technological language, it is said that marginal productivity of such labour is zero. The kind of disguised unemployment is also comes underemployment.

Other types of unemployment :
1) Cyclical Unemployment : If unemployment occurs as a result of trade cycles, if it is called cyclical unemployment. Trade cycles refers to the frequent booms and depression, up swings and low swings. Keynes said that cyclical unemployment is the result of the deficiency in efficient demand. Therefore, if effective demand increased, the level of employment can also be increased.

2) Structural Unemployment : It is one of the main type of unemployment within an economic system. If focuses on the structural unemployment within an economy and inefficiencies in labour markets. Structural unemployment occurs when a labour market is not able to provide jobs for everyone who is seeking unemployment.

3) Under employment : Labour that falls under the underdevelopment classification includes those workers that are highly skilled but working in low paying jobs.

4) Frictional Unemployment : It is another type of unemployment within an economy. It is the time period between jobs when a worker is searching for or transistioning from one job to another. Frictional unemployment is always present to some degree in an economy. It occurs when there is a mismatch between the workers and jobs.

Question 9.
MGNREGS
Answer:
MGNREGS means (Mahatma Gandhi National Rural Employment Guarantee scheme). This scheme was launched from 2^nd October 2009, MGNREGS seeks to provide at least 100 days of guaranteed wage employment in a financial year to at least one number of every rural household whose adult members voluntar to do unskilled manual work.

At least 33% of the beneficiaries are to be women under MGNREGS wage disbursement through bank and post office is mandatory This is to help in “financial inclusion” of the poor. It provides a wage rate of ₹ 100/- per day to a worker. The focus of MGNREGS is an workers relating to water conservation, drought proofing, land development, flood control and rural connectivity etc. Panchayats have a key role in planning, implementation and monitoring of MGNREGS. This Act is useful for decentralization and deepening gross root democratic structure.

Question 10.
Explain the factors affecting cropping pattern.
Answer:
Factors affecting cropping pattern in India : The cropping pattern in India can be affected by various factors like physical, economical, technical and Government policies.

Physical Factors : Physical factors play a vital role in determining the cropping pattern. These factors are classified below.
1) Climate and Rain fall: Climatic conditions and rainfall determine cropping pattern. Some crops require cool climate while some .other crops require hot climate. For instance, apples will be produced in cool climate. For instance, crops like Paddy, Sugarcane require abundance of water.

2) Nature of Soil and Fertility : Nature of soil and fertility determine the production of certain crops. For instance, wheat requires well drained silt and fertile loam soils but for cotton black soils are ideal.

3) Irrigation facility: It also determine the cropping pattern. For instance crops, like Paddy, Sugarcane, Wheat etc., require assured irrigation facility. Some other crops like Jowar, Maize, Ragi etc., will grow in the areas where irrigation facilities are insufficient.

Question 11.
Contract farming.
Answer:
Contract farming means that farming in which sale contract is made between farmers and users of farm products. Industries sugar, cotton, jute etc., have sale contracts with the farmers. The following are the advantages of contract farming.

1. Collective sale contracts of farmers provide better result than individual contracts.
2. Fluctuations in the prices of farm products can be minimized and income of farmers can be maximized.
3. Farmers will receive credit and technological support from the industries with whom they have sale contract.
4. Prices of these products are fixed well in advance the farmers and put to effort to maintain quality of the products which have sale contracts.

Question 12.
Industrial Finance Corporation of India.
Answer:
The Government of India set up the Industrial Finance Corporation of India in July 1948 under a special Act. The corporation was authorized to issue bonds and debentures in the open market, accept deposits from the public and also borrow from the R.B.I.

Functions :

1. It guaranteed loans raised by the industrial concerns in the capital market.
2. It granted loans and advances to industrial concerns and subscribed to the debentures floated by them.
3. If under wrote the issues of stocks, shares, bonds and debentures of industrial concerns.
   The loans sanctioned by IFCI increased from ₹ 210 crores in 1980 – 81 to ₹ 1,860 crores in 2000 – 01.

Question 13.
What is Tourism ? Explain its importance in Indian economy.
Answer:
Tourism is the sub – sector of tertiary sector in general and services industry in particular.

W. T. O defined Tourism as “the activities of persons travelling and staying in places outside their usual environment for not more then one consecutive year for leisure, business and other purposes”.

Importance :

1. Tourism provides revenue to the government.
2. Tourism creates employment facilities for women.
3. It provides regional development.
4. It is a source of foreign exchange earnings.
5. Tourism sells indirectly the environmental resources.
6. It can be used as a means of reducing poverty.
7. It builds partnership with private sector.

Question 14.
Explain the contribution of GDP in service sector.
Answer:
Service sector has become very prominent in world’s economies. The importance may be highlighted in terms of its contribution to GDP, employment and expor2ts.

The share of GDP is high in many countries. The following table shows that the contribution of services sector to the overall GDP those countries is very high in the tuble U.K has highest share of service sector followed by U.S.A, France. In India the share of service sector increase between 2001 and 2013.

Share of Service Sector in GDP in select countries.

Question 15.
Difference between GATT & WTO.
Answer:

GATT	WTO
1. It had no legal status.	1. It has legal status.
2. It was not created by the government and legislatures.	2. It has been created by international treaty ratified by the governments and legislatures of the member states.
3. It was not an agency of the united nations organization.	3. It has co-operative relationship with the UNO. The agreements which form part of the WTO are permanent and binding on all members.
4. It has a set of rules and procedures relating to multilateral agreements of selective nature. There were separate agreements on separate issues which were not binding on members. Any member could stay out of an agreement. Only could be penalized on default.	4. Action can be taken against any defaulting member by all the member states.
5. The GATT disputes settlement system was dilatory and not binding on the parties to the disputes.	5. The WTO dispute settlement mechanism is automatic, faster and binding on the parties.
6. The GATT was a forum where the member countries met once in a decade to discuss and solve world trade problems.	6. It’s properly established rule based World Trade Organisation where decisions on agreements are time bound.
7. The GATT rules applied to trade in goods.	7. The WT.O covers not only trade in goods and services but also trade related aspects of intellectual property rights and number of other agreements.
8. It has a small secretariat managed by a Director General.	8. It has a large secretariat and a huge organizational set-up.

 

Question 16.
What is pollution ? Explain the types of pollution.
Answer:
Pollutant is a physical agent which is found more than the normal levels, changes the physical, chemical or biological characteristics of the resources that environment is supplying.

Types of Pollution : Pollution can be classified into various types among which air, water, soil, noise pollutions are important forms.

Air Pollution; The excessive concentration of contaminated substance in the air which adversely affects the well being of the individuals, living organs and property of all forms is called as air pollution.

Water Pollution : It is defined as the addition of some substance or factor present in water which degrades its quality. So that it becomes health hazard or unfit for use”.

Soil Pollution : Unfavourable alteration of soil quality by disturbing the natural composition which decreases soil productivity.

Noise Pollution : Any noise generated above 125 dl. B and produces harmful effects in environment and causes health hazards to human being is called noise pollution.

Question 17.
What are the uses of dispersion ?
Answer:
According to A.L.Bowley “Dispersion is the measure of the variation of the items”.
According to Brooks and Dick “Dispersion or spread is the degree of the scatter or variation of the variable about a central value”.

Uses of Dispersion:

1. To use other statistical methods : After getting value of dispersion we can proceed to other techniques such as to locate corelation or lines of regression (Regression Analysis).
2. To compare variability : We are in the general habit of comparison may it be income, weight or temperature. To achieve the required degree of result one tries to improve to achieve the required result.
3. To test reliability of average : If the total of differences between the central value and the given value is smaller, the uni-formity is less i.e., it means that this sum should be minimum for the reliability of the average.
4. To establish trends in time series : In time series we remove, cyclical, seasonal or random fluctuations, which we from after studying central values.
5. To control the undesired variability : According to Spun and Bonini “In industrial production, efficient operation requires control of quantity variation, the causes of which are sought trought inspection and quality control programmes”.

Thus it is clear from above definition that we have to find the cause for variation when we compare the: degree of variability between two series.

Section – C (15 × 2 = 30)

Note :

• Answer any FIFTEEN of the following questions in 5 lines each.
• Each question carries 2 marks.

Question 18.
Dual economy.
Answer:
An economy where both technically advanced and technically primitive sectors exist side by side is called as dual economy.

Question 19.
Human development index.
Answer:
Human Development Index measures the average achievement in the three basic dimensions of human development. They are life expectancy adult literary rate and decent standard of living.

Question 20.
Joint family.
Answer:
Joint family system in India is very much common in rural areas. The joint family system induces young couples to have children since taking care of their bringing up at home is not a problem in a joint family their economic burden is carried and shared by the earning members.

Question 21.
Infant mortality rate.
Answer:
It is calculated at a ratio of the number of death among the 1000 bom children in a ,year.

Question 22.
Cooperative farming.
Answer:
Co-operative farming means where the total land of village pooled into one unit and farmed together.

Question 23.
Micro finance.
Answer:
The provision of thrift, credit and other financial services and products of very small quantity to the poor in rural, semi-urban and urban areas for enabling them to raise their incomes and improving living standards.

Question 24.
Service sector.
Answer:
Service sector is also known as tertiary sector. Service sector is the life line for the social and economic growth of a country. The service sector activities include trade, transport, communications, banking, insurance, education, health, energy, marketing etc., all these facilities and services constitutes collectively the tertiary sector.

Question 25.
Plan holiday.
Answer:
The gap that occurred in the planning process. There was official gap was 1966 – 69. A unofficial gap occurred in 1990 – 92 due to economic and political instability in the country.

Question 26.
List of backward states in India.
Answer:
We can classify the states in India into two categories on the basis of percapita income. Poverty and Human development index.
They are

1. Developed states
2. Developing states Backward states are Orissa, Bihar, Utter Pradesh, Madhya Pradesh and Assam.

Question 27.
Regional imbalance.
Answer:
The co-existence of relatively developed and economically depressed states and even regions with each country or state is known as Regional imbalance. It may be natural or mammal.

Question 28.
Perspective plan.
Answer:
A perspective plan is a macro plan formulated for a period of 15 to 20 years. Keeping in view the long term needs and long term objectives.

Question 29.
TRIMs.
Answer:
Trade related investment measures refer to certain condition or restrictions imposed by a Governments is respect of foreign investment in the country. TRIMs were widely employed by developing countries. The agreement or trade. Related investment measures calls for introducing national treatment of foreign investment.

Question 30.
SGDP.
Answer:
The state gross domestic product is defined as the total value of the final goods and services produced with in the geographical boundaries of the state during a year.

Question 31.
Sea-Ports in A.P
Answer:
Ports are a gateway to trade and commerce. A.P has the second longest coastline of 972 km after Gujarat in India. Ports provide development and growth of maritime activities. Visakha is the largest port in the State and also one of the largest port in terms of handling cargo in Country.

Question 32.
Green House effect.
Answer:
It is a phenomenon in which the atmosphere of a planet traps radiation emitted by the sun caused by gases such as CO₂, water vapor and methane, that allow incoming sunlight to pass through but retain heat radiated back from the planet’s surface. It leads radiation climate changes etc.

Question 33.
Air pollution.
Answer:
The excessive concentration of contaminated substance in the air which adversely affect the well being of the individuals, living organs and properly of all forms is called air pollution.

Question 34.
Globalization.
Answer:
It is the process of integrating various economies of the world without creating and hindrances the free flow of goods and services, technology, capital even labour or human capital.

Question 35.
Eco Tourism.
Answer:
Andhra Pradesh vision – 2020 envisaged East Godavari tourism as a growth engine. It is one of the important type of tourism in A.P. Maredumilli, Nelapattu (Nellore) Mamandur, Talakona (Chittoor), Balapalli (Kadapa), Ethipothala (Guntur), Kambala Konda (Visakhapatnam) are the famous eco – tourism centres in A.P.

Question 36.
Rank Correlation.
Answer:
In 1904, Prof. Charter Edward Spearman had devised a method of rank correlation. It is based on the ranking of different items in the variable. This method is useful where actual item values are not given simply their ranks in the series are known.

Question 37.
Index number.
Answer:
Index numbers are devices for measuring difference in the magnitude of groups related variabilities. There are four types of index numbers.

1. Price index number
2. Quantity index number
3. Cost living index number
4. Special purpose index number