AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers Set 5 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Model Paper Set 5 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.
Bring out the main elements of population policy 2000.
National population policy: The national population policy, 2000 has outlined immediate, medium term and long-term objectives. The immediate objective is tb meet needs of contraception, health infrastructure, personal health and to provide integrated service for basic reproductive and child health care. The medium term objective is to lower down the total fertility rates to the replacement level by 2010. The long term objective is to achieve a stable population by 2045. In this broad frame work, the national population policy, 2000 aims at the following :

  1. Reduce maternal mortality ratio to below 100 per 1 lakh live births.
  2. Reduce infant mortality rate to below 30 per one thousand live births.
  3. Achieve immunization of children against all vaccine preventable diseases.
  4. To achieve 100 percent deliveries in hospitals and dispensaties.
  5. Prevention and control of communicable diseases.
  6. Achieve universal access to information and counselling and services for fertility regularization and contraception with a wide basket of choice.
  7. Facilities for safe abortions to be increased.
  8. Promote delayed marriage for girls, not earlier than age 18 and preferably after 20 years of age.
  9. Promote the small family norm to achieve replacement levels of total fertility rates.

In pursuance of the National Population Policy 2000, a National Commission of Population has been set up. The commission will review the implementation of the National Population Policy in due time.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 2.
What are the causes for rural indebtedness ? Suggest some remedial measures to reduce it.
A majority of rural households are in indebtedness. Among the rural households, in- debtedness is highly prevalent in cultivators household, especially in the case of marginal and small farmers. Generally, these households are borrowing from non- institutional sources at a high rate of interest which results in rural indebtedness. The following are the main causes for increasing rural indebtedness in India.

1) Ancestral debt : The most important cause of the existing rural indebtedness is the ancestral debt which is inherited from ancestors. Infact, the volume of inherited debt should be limited to the extent of inherited property. Hence, many of the rural poor in our country are starting their career with a heavy burden of ancestral debt.

2) Poverty : The basic cause of the indebtedness of the farmers is their poverty. The farmers have to borrow for various purposes, as he has no past savings of his own. Poverty either forces the peasants to borrow or prevents them to pay off debts.

3) Natural calamities : Another cause of rural indebtedness is that indian agriculture is still a gamble in monsoons. Frequent failure of monsoons results is drought. On the other hand, excessive rains cause havoc in the form of floods which damage crops. All these problems force the farmers to borrow funds.

4) Extravagance of the farmers : It has been observed that Indian farmers spend more on social and religious functions like marriages, festivals, births, funerals, dinners, ornaments etc, beyond their capacity. All these funds borrowed for such un-productive purposes cannot be paid off easily.

5) Money lenders : Money lenders are the main source for the provision of credit facilities in the rural areas. Money lenders are least interested in the well being of farmers. Hence, they tempt the farmers to borrow funds for unproductive purposes at high rates of interest keeping in grab of their valuable assets. They adopt many unfair methods to exploit the rural people.

6) Small size land holdings: The average size of land holdings in India is very small due to sub-division and fragmentation of land holdings. When the holdings are small, modernization of agriculture becomes impossible.

7) Litigations : Litigation either civil or criminal is another cause of rural indebtedness. People in rural areas generally indulge in various kinds of disputes like disputes over boundaries, path-ways, fencing etc. Hence, their valuable time and money is being wasted and this adversely affect farm production. All these lead to increase in their debts.

8) Passion for land: The peasants have a tremendous passion for land and desire to make improvements on land. These improvements on land should be done through saving and not through borrowing. But farmers mostly borrow for these purposes.

9) Other causes : In addition to the above causes, purchase of household luxuries, spending on bad habits, increasing cost of cultivation, dependence on non-institutional sources, expenditure on medicines, lack of support prices for the crops etc, are becoming responsible factors for increasing rural indebtedness.

Remedial measures :
1) Expansion of Institutional credit : In order to reduce the dependence of the rural people on money lenders, the Government should provide timely and adequate credit through commercial banks, RRBs, co-operative credit societies etc. Consequently, the rural people get relief of their debts.

2) Regulation of Money lenders : The Government should enact legislations to control money lenders. These legislations should consist of licensing and registration of money lenders, maintenance of accounts in prescribed form, fixing maximum rate of interest, furnishing receipts to debtors after payment etc.

3) Debt Moratorium : Central Government and State Govern-ments are resorting the policy of debt moratorium for redemption of debt of the marginal farmers, small farmers and landless laborers as it was introduced during the period of emergency.

4) Educating the farmers : All the farmers in rural areas should be educated. Then only they can understand various legislations pertaining to ancestral debt and fixed rate of interest.

5) Supply of Inputs : The institutional credit sources should sanction loans to the rural poor not in the form of cash but in the form of inputs in order to avoid unproductive expenditure. Such mode of sanction definitely enhances the repaying capacity of the debtor and minimizes the problem of indebtedness.

6) Others : In addition to the above the Government has to frame various schemes to eradicate poverty and employment which in turn increase the income and the repaying capacity of rural poor. Coverage of women farmers under micro-finance methodology must be increased.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 3.
Explain the role of Foreign Direct investment in economic development of India.
Foreign direct investment is a major source of non financial resources for the economic development of India. Foreign companies invest in India to take advantage of cheaper wages, special investment privileges like tax exemptions etc. The Government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defense, PSU oil refineries, telecom, power exchange, stock exchange, Automobile industries etc.

According to a recent report45y global credit rating agency Moody’s, FDI inflows have increased significantly in India in the current fiscal. Net FDI inflow to take of US $ 14.1 billion in the 1st five months of 2014 – 15. Total FDI inflows into India in the period April 2000 – November 2014 touched US $ 350,963 millions.

Government initiatives towards (FDIs): India’s cabinet has cleared a proposal which allows 100% FDI in railway, infrastructure, excluding operations. The Government has notified easier FDI rules for construction sector, where 100% overseas investment is permitted, which will allow overeas investors to exist a project even before its completion.

With the objective of encouraging foreign firms to transfer state of the art technology in defence production, the Government increase the FDI cap for the sector to 74% from 49% at present. The Union Cabinet has cleared a bill to raise the foreign investement ceiling in private insurance companies from 26% to 49%.

The RBI has allowed a number of foreign investors to invest on repatriation basis, in non – convertible preference shares or debentures which are issued by Indian companies. The RBI has established a frame work for investments, which allows foreign port folio investors to take part in open offers, buyback of securities and disinvestment of shares by Central or State Governments.

India will require around US $ 1 trillion in 12th Five Year Plan to fund infrastructure growth covering sectors such as highways, ports and airways. This requires support in terms of FDI. During the year 2013 FDI was dumped into the automobiles, computer software, hardware, power and telecommunications.

Question 4.
Explain the role of international trade in Economic develop-ment.
The role of international trade in economic development is significant. In modern days all countries irrespective of their financial status Eire depending in participating in international trade. Economists found a positive association between country’s participation-in international trade and its level of economic growth.

a) Increases output : Due to international trade when a country specializes in the production of few goods and division of labour, it exports the commodities which it produces cheaper in exchange for what others can produce at lower cost. It gains from trade through increased output, national income which is useful to break vicious circle of poverty and promotes development.

b) Expand market: Developing countries are hampered by the small size of domestic markets which fail to absorb sufficient volume of output. This leads to low inducement to investment. International trade widens the market and increases the inducement to invest.

c) Increases Employment : Due to international market opportunities, under – developed countries started exploiting un-utilized resources which will reduce unemployment and under employment. As people’s income rises, domestic savings and investments increase. Human resources will be utilized optimally.

d) Increases Internal and External Economies : Expansion of productive activities and expanded market opportunities leads to a number of internal and external economies, and hence to reduction of cost of production. There are the direct gains from international trade.

e) Indirect Benefits : By enlarging the size of the market and the scope of specialization, international trade makes a greater use of machinery, encourages inventions and innovation and raises labour productivity.

f) Import of capital goods against export of staple commodi-ties : International trade helps to exchange domestic goods having low growth potential for the foreign goods with high growth potential.

g) Important Educative Effect: International trade helps in importation of ideas, skills and technical know – how from the developed countries and stimulates technical progress in UDCs. So underdeveloped countries have to change their poor educational, technical, productive systems so as to raise their competitiveness.

h) Basis for importation of foreign capital : Developing countries are capital scarce economies. This condition restricts the economy in all fields to move ahead. If a country actively partici-pates in international trade, the unused capital resources of rich countries will flow and utilized effectively in capital poor countries. Foreign capital not only helps in increasing employment, output and income but also smoothen the adverse balance of payments and inflationary pressures.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 5.
Describe the relationship between environment and the economy.
Relationship between environment and economy : The functions of the environment explain the importance of environment. It acts as the supplier of raw materials to the economy and absorbs the wastes discharged by the economy.

In economic terms, the resources supplied by the environ-ment can be called as environmental goods. These goods are public goods. They can be used by many individuals at the same time without any competition from other individuals.

However, in modern days, the reckless and exploitative behaviour of the economic activity is setting a limit to the efficiency of environment to supply to the resources. Economist warned the world about the consequences of overuse of environmental resources. He said that earth is a spaceship with a limited amount of life support resources. He warned the mankind to minimize the consumption rather than to maximize it.

In the other words, there should be a balance between inputs and outputs. When we receive the inputs to produce goods and services, it must be equal to the consumption and the discharge of wastes. The quality of wastes and emission must be less, so that the environment can absorb them. Material balance model provides and excellent answer for the relationship that must exist between environment and the economy.
R = F + W1

The household sector consumes all the ‘F’ units of produced goods and services. While doing so, it also produces W2 units of wastes.
So in the consumption sector F = W2
Hence, in the consumption economy R = F = (W1 + W2)
Therefore R = (W1 + W2)
These equations show that the entire mass of inputs (raw materials) equal the entire mass of output (wastes). This entire amount of wastes is returned to the environment. Thus, the materials taken from the environment are again returned the environment in equal amounts.
Hence, R = W1 + W2
This equality shows the accounting identing of the material balance. Assuming this two sector model, material balance can be explained by the diagram.
AP Inter 2nd Year Economics Model Paper Set 5 with Solutions 1
Note : F = W and R = W1 + W2; F = Final goods and services;
W = Wastes; R = Raw material the production sector uses R (Raw materials) units of raw materials from the environment to product F unit of final products. While producing the final products, it also produces W1 amount of wastes. So in the production sector.
R = F + W1
The household sector consumes all the ‘F units of produced goods and services. While doing so it also produces W2 units of wastes.
So in the consumption sector F = W2
Hence, in the economy R = F = (W1 + W2>
Therefore R = (W1 + W2)

These equations show that the entire mass of inputs (raw materials) equals the entire mass of output (wastes). This entire amount of wastes is.returned to the environment. Thus, the materials taken from the environment are again returned to the environment in equal amounts. Hence, R = W1 + W2. This equality shows the accounting identity of the material balance.

It can be concluded that this material balance model depends upon the first two laws of thermodynamics. The first law explains that the energy can be changed from one form to another. But it can neither be created nor destroyed. The second law is the law of entropy. Economic activities of production and consumption are dependent on these two laws. Similarly generation and assimilation of wastes are also dependent on the two laws.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

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 occupational distribution of population in India.
The occupational structure of a country refers to the distribution or division of its population according to the different occupation. We can divided various occupations into three catagories.

1) Primary occupations : Primary occupation also called agriculture sector. Agriculture and allied activities it includes forestry, fishing, animal husbandary, poultry farming etc. Because their products are essential for human existence. They are carried with the help of the nature. In the developing countries a large portion of the population is engaged in these activities.

2) Secondary occupations : Secondary occupation also called industrial sector. It includes mining and quarrying, electricity, gas and water etc. This sector is invariably small in the third world countries and absorbs only a small section of the labour force.

3) Tertiary occupations : Tertiary occupation is also called service sector or third sector. It includes trade and commerce, transport, storage and communications, banking, insurance, real estate, education and health. Tertiary activities help primary and secondary activities in the country.
There is a close relationship between the development of economy and changes in occupational distribution of population.

According to Hans Singer Economic development can be achieved by transforming a 85% agricultural dependent country into a 15% agriculturally dependent country.
Occupational distribution of working population in India

Year Primary Sector Secondary Sector Tertiary Sector
1951 72.1 10.7 17.2
1981 71.8 12.2 16.0
2001 56.7 18.2 25.1
2011 48.9 24.3 26.8

Trends in occupational structure during 1951 – 2011 : 2011 census reveals that 48.9% of the labour force was employed in the primary sector. It indicates in predominance of agriculture in the economy. Secondary sector in India still remains small inspite of all the attention that heavy industries got under the various plans. In 2011 secondary sector accounted 24.3% of the labour as against 10.7% of labour force employed in the manufacturing sector during planning period. The tertiary sector in India accounts for a little more than one fifth of the labour force.

Question 7.
What are the advantages and disadvantages of population ?
Population of India means the total number of people living in India. Population is very essential for the growth of country.

Advantages of Population:

  1. Population provides work force to produce goods and services.
  2. Population provides market for the products that are produced.
  3. Population promotes innovative ideas.
  4. Population promote division of labour and specialisation.

Disadvantages of Population:

  1. Population put pressure on means of subsistance.
  2. Population leads to unemployment if there are no adequate jobs.
  3. Population put pressure on social overheads like hospitals, schools, roads etc.
  4. Population may result in increased consumption and reduced savings and capital formation.
  5. Population may increase dependency.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 8.
MGNREGS means Mahatma Gandhi National Rural Employ-ment Guarantee Scheme. This scheme was launched from 2nd 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 9.
Need for land reforms,

  • Agriculture development: Agricultural development takes places when land reforms are entrusted in agrarian sector to avoid the hindrances to agricultural development. In such atmosphere technical reforms will be fruitful in agricultural sector.
  • Economic Development : Agrarian sector influences largely the economic development of our country. In order to attain sustainable growth rate in Indian agriculture, it is inevitable to implement land reforms.
  • Social Justice: Land reforms are aimed at alleviating rural poverty by distributing land among the landless, providing security to tenant, protecting the interests of tribals. Land reforms aim at achieving social justice in the economy by eradicating poverty and disparities in income.
  • Increase in Agricultural productivity: Land reforms are essential to increase the production and productivity in Agriculture.

Question 10.
Commercial banks and Rural Credit.
The commercial banks started a vital role after nationalization of 14 banks in 1969 and 6 banks in 1980. As far as rural credit is concerned, the role of commercial banks is highly appreciable. These banks are supplying credit to the rural areas in the following manner.

1) Commercial banks are supplying credit for short term and longterm requirements of the needy farmers in rural areas. They are providing short term crop loans which accounted 42 to 45 percent of total loans disbursed by commercial banks. Long term loans are extended by commercial banks for purchasing pump sets, tractors and other agricultural machinery which accounted 35 to 37 % of total loans disbursed by commercial banks.

2) Commercial banks are extending credit facilities to agricultural allied activities like dairying, poultry, farming, piggery, fisheries etc.

3) Commercial banks working for the implementation of various rural development programmes like IRDP ; JRY etc by sanctioning and disbursing credit to the beneficiaries.

4) Commercial banks are indirectly helping the rural farmers by extending credit for fertilizers and pesticides companies. Central warehousing Corporation and Regional Rural banks.

Question 11.
National Investment Fund.
The Goverment of India constituted the National Investment Fund (NIF) on 3rd November, 2005. The amount received in the form of Disinvestment will go into the National Investment Fund. The fund was to be maintained outside the consolidated fund of India. The NIF was initialized with the disinvestment proceeds of two CPSE. 1. Power Grid Corporation of India Limited (PGCIL) and Rural Electrification Corporation (REQ amounting to ₹ 1814.45.

Features :

  1. The corpus of the National Investment Fund will be of a permanent nature.
  2. The proceeds from disinvestment of CPSEs will be channelized into the national investment fund, which is to be maintained outside the consolidated fund of India.
  3. The fund will be professionally managed to provide sustainable returns to the Government.
  4. 75% of annual income of the fund will be used to finance selected social sector schemes, which promote education, health and employment. Ex : Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) etc.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 12.
Explain the banking system in India.
A well – developed banking system is necessary pre -requisite for achievement of economic development. Banks play an important role in mobilization of savings and investments. Banks are the efficient agents of capital formation in the economy and give access to use the resources in a productive way.

Banking system in India has been playing a very important role in the process of economic development. Depending upon the nature of the activity performed by them, banking system in India may be classified into the following categories.

They are :
a) Commercial Banks
b) Cooperative Banks
c) Central Bank (Reserve Bank of India)

a) Commercial Banks : The commercial banks were nationalized in phased manner in 1969 and 1980. They are classified as public sector (nationalized) banks and private sector banks. The State Bank of India and its associates along with another 20 banks are the public sector banks. The Indian scheduled banks, which are not nationalized and branches of foreign banks operating in India are called as private sector banks.

b) Cooperative Banks : Under Cooperative Banking System State Cooperative Banks, District Central Cooperative Banks (DCCB) and primary to short term credit. State Cooperative Agriculture and Rural Development Banks and Primary Agriculture and Rural Development Bank provide long term credit.

c) Reserve Bank of India (RBI) : The RBI is India’s Central Bank was established on 1st April 1935 was nationalized on 1st January 1949. RBI is Supreme Monetary Authority in the country. It keeps the reserves of all scheduled banks, which were included in 2nd schedule of RBI and which were not included is called as ‘Non-schedule Banks’.

Question 13.
Functions of W.T.O.
a) W.T.O facilitates the implementation, administration and operation of world trade agreements.
b) It provides the forum for trade negotiations among its member countries.
c) It shall handle trade disputes.
d) It shall monitor national trade policies of member countries.
e) It shall provide technical assistance and training to developing countries.
f) It maintains harmonious and co-operative relationship with IMF and IBRD and its affiliated agencies.

Question 14.
Explain the effects of pollution on human health.
Enviommental degradation has adverse effects on human health, which may lead to raise the labour absenteesism. Ill health causes to decrease the efficiency of labour which inturn leads to low productivity.

  • Air Pollution : Air pollutants like carbon monoxide, nitrogen oxides, hydrocarbons, particulate matter etc., attack human health through respiratory system. Diseases like bronchitis, lung cancer, eye irritation and skin irritation etc., are caused by air pollution.
  • Water Pollution: Water is significant vehicle in transmission of diseases, various disease – producing organisms such as viruses, bacteria and protozoa are transmitted through water. These organisms cause dysentery, typhoid, cholera and infectious hepatitis.
  • Sound Pollution : Sound pollution affects human health in many ways. Loud noise causes disturbances in sleep and lead to different side effects. It leads to damage of hearing, interference with work tasks and speech, diversion of concentration,’ hypertension, tachycardia (fast heart beat) and irritation.

Question 15.
Write a note on the economy of Andhra Pradesh.
Andhra Pradesh is one of the among the largest states of India in terms of-area and population. It is the eighth largest state in terms of geographical area, accounting for 4.96% of the area of the country. State has a total geographical area of 160.21 lakh hectares. In terms of population, it is the 10th largest state with 4.96 crore i.e., 4.10% of the country’s population.

State Gross Domestic Product (SGDP) : The SGDP may also be called as the state income. SGDP is defined as the total value of the finished goods and services produced within the boundaries of the state during a year.

The three sectors in A.P Economy area as follows.

  1. Primary sector : Agriculture, Animal husbandary, Forests etc.
  2. Industrial sector : Industries, Electricity, Irrigation.
  3. Tertiary sector : Trade, Hotels, Transport, Communication etc.

The SGDP A.P an increase trend from 2005 – 06 ₹ 1,41,977 crore to 2013 – 2014 it was ₹ 2,50,282 crores. The growth rate of SGDP of A.P 6.08% in 2013 – 14.

Per capita income : The per capita income gives a better idea of the standard of the people. A.P per capita income was ₹ 85,797 in 2013-14.

Agriculture : Agriculture and allied actives remained the main source of livelihood of the state population. During 2013 – 14 food Crops are grown in 54.92 lakh hectors.

Industry: The industrial development in A.P in going on the same lines of the industrial development of India. The industrial sector contribution in GSDP undergoes slight changes. It shares decreased from 23.7 during 2007 – 08 to 20.7% by 2013 – 14.

Tertiary Sector : The share of tertiary sector in the SGDP has shown a tremendous increase from ₹ 64,411 crore to ₹1,40,054 crore in 2013 – 14.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 16.
Importance of Tourism in A.P.
Andhra Pradesh Tourism Development corporation is state # government agency which promotes tourism in A.R The state government is making efforts to bring the world to A.P and take A.P to the world. A new tourism policy was announced in 2010 and steps are initializing to make Andhra Pradesh as a tourist – friendly destination. The important types of tourism in A.P are as follows.

  1. Pilgrim Tourism
  2. Health Tourism
  3. Buddhist Tourism
  4. Beach Tourism
  5. Farm Tourism
  6. ECO Tourism
  7. Leisure Tourism

The tourist spots in A.P lire attracting both domestic and foreign tourists.
The state is also famous for pilgrim tourism. All these attractions are increasing the inflow of foreign and domestic tourists in A.P.
Tourism is now becoming a revenue source for the state’s treasury along with IT sector.

Question 17.
Calculate the quartile deviation for frequency distribution.
AP Inter 2nd Year Economics Model Paper Set 5 with Solutions 2
AP Inter 2nd Year Economics Model Paper Set 5 with Solutions 3
Q1 = L + \(\frac{\frac{n}{4}-C F}{f}\) × i
Where Q1 = Size (\(\frac{n}{4}\))th value = (\(\frac{40}{4}\))th = 10th item
L = Lower limit = 10
C.F = 5 (value of C.F for the class preceeding the quartile class)
i = 10 (frequency of the quartile class)
AP Inter 2nd Year Economics Model Paper Set 5 with Solutions 4

Section – C (15 × 2 = 30)

Note :

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

Question 18.
Tertiary sector.
Tertiary sector is also called service sector. Trade, transport, communications, banking, insurance, education, health etc., are included in service sector. Tertiary activities help primary and secondary activities in the country.

Question 19.
Janani Suraksha Yojana.
The scheme has dual objectives of reducing maternal and infant mortality by promoting institial deliveries. JSY has started in the year 2005 – 2006.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 20.
Literacy rate.
Literacy Rate :
AP Inter 2nd Year Economics Model Paper Set 5 with Solutions 5

Question 21.
Usual status concept of unemployment.
This concept is used to measure chronic or long-term unemployment. It measures the activity status i.e., a person who remains unemployed for most of the time in the year. Thus, it appropriately measures open unemployment.

Question 22.
Ryotwari system.
Thomas Manro introduced this system in Tamil Nadu in 1792. In this system the ryot had full rights regarding sale, transfer and leasing of land. Under this system no middle man exists between farmer and Government.

Question 23.
Sprinkler irrigation.
This is also called overhead irrigation system, water is piped to one or more central locations within the field and distributed by overhead high pressure sprinklers or guns.

Question 24.
The process of pooling up of small surplus of individual farmers in the market of the producing area is called assembling.

Question 25.
Marketable surplus.
Marketable surplus is the available surplus for marketing ‘ after meeting all the requirements of the farmers.

Question 26.
General Insurance Industry in India was nationalized in 1972 and a government company known as General Insurance Corpora-tion of India (GIC) was established. There are four GIC companies.

  1. National Insurance Company Limited
  2. New India Assurance Company Limited
  3. Oriental Insurance Company Limited .
  4. United India Insurance Company Limited. The GIC deal with non-life insurance.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 27.
Performance of Software Industry.
The software industry is the main component of the information technology in India. India’s pool of young aged man power is the key behind this success story. Presently there are more then 500 software forms in the country. Global software gaints like Microsoft, Oracle etc.

Question 28.
Balanced regional development.
It implies the extension of the economic progress to the backward area and widespread diffusion of industry. It does not mean equal development of the different regions in the country. The objective is to raise the standard of living of the people into backward regions.

Question 29.
The clause of MFN.
Any concession given to any nation was automatically extended to all the member countries of the GATT. MFN means Most Favoured Nation.

Question 30.
Reasons for deforestation.
Forests are deforestation due to various causes such as population growth, poverty and unemployment, fire wood, overgrazing, construction of dams, roads etc.

Question 31.
A deep, loud and unpleasant sound which is undesirable and unwanted.

Question 32.
Swachh Bharat Abhiyan.
Mahatma Gandhi communicated a quintessential message to the ration through his efforts, to educate people around him about cleanliness. He wished to see a ‘Clean India’. To work seriously towards this vision of Gandhiji, P. M. Shri Narendra Modi – External website that opens Swachh Bharat in October 2,2014. This mission seeks to achieve the goal of clean India 150th birth anniversary of Bapu.

Question 33.
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.

AP Inter 2nd Year Economics Model Paper Set 5 with Solutions

Question 34.
Civil aviation A.E
Government has entered into memorandum of understanding with Airports Authority of India (AAI) for up – gradation / modernization of non metro airports at vijayawada, Tirupati, Kadapa and Rajahmundary. AAI has proposed to upgrade the Tirupati airport International standards.

Question 35.
Any welfare programme.
Government of A.P has been implemention various welfare programmes/schemes. Some of the welfare programmes are Pavala Vaddi scheme, Abhaya Hastam Ready to eat, Metric Scholarships, Micro credit to self help groups etc.

Question 36.
Correlation is an analysis of the co-variation between two or more variables.
There are two types of correlation.

  1. Karl Pearson’s method
  2. Spearman’s Rank method

Karl Pearson’s correlation (r) = \(\frac{\Sigma x y}{\sqrt{\Sigma x^2 \times \Sigma y^2}}\)
Spearman’s correlation (rk) = 1 – \(\frac{6 \Sigma D^2}{N\left(N^2-1\right)}\)
(OR) 1 – \(\frac{6 \Sigma D^2}{N^3-N}\)

Question 37.
Laspeyre’s Price Index Number.
p = \(\frac{\Sigma \mathrm{P}_1 \mathrm{Q}_0}{\Sigma \mathrm{P}_0 \mathrm{Q}_0}\) × 100

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