AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers Set 6 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Model Paper Set 6 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 advantages and disadvantages of cooperative farming.
Meaning of Co-operative Farming : Co-operative farming indicates that all fanners of a village from themselves voluntarily a society. After forming the society entire land holdings of the farmers will be pooled into one unit. Later they will handover their land, cattle, implements etc., to the society. The co-operative society will cultivate all these holdings as one farm.

Advantages :

  • Increase in Production : Co-operative farming will bring more land into cultivation either consolidation of land holdings or bring into use waste land. Consequently, both the production and marketable surplus will increases.
  •  Large Scale Economies : Large scale economies will occur in co-operative farming such as technical, marketing, financial economies etc., As a result, the cost of production will decrease and the returns will be maximized.
  • Land Development Activities : Land development activi-ties, like land conservation, land reclamation, construction of water sheds etc., can easily be made by co-operative farming societies. These activities will improve the production of agriculture.
  • New Farm Technology : Co-operative farming enables the farmers to adopt new technical implements in cultivation. New agricultural practices can be made in the farm sector. This results in agriculture development.
  • Effective Farm Management: Co-operative farm societies can easily ensure effective farm management by appointing experts in agriculture science. It is possible to implement division of labour and specialization in farm activities.
  • Higher Demand for Labour : The demand for labour increases because of intensive and extensive cultivation in farm sector. As a result, seasonal and disguised unemployment can be evicted from farm sector.
  • Social Equality: Co-operative farming inculcates the spirit of co-operation among the members of the society. Such a spirit of co-operation results in confidence, collective action, joint thinking and feeling of fraternity among the members of the society.

Problems of co-operative Farming :

  • Opposition from Farmers : The farmers feared that they may lose their right of ownership of the land and their position will decline to the level of agricultural labour. Hence, peasants reluctant to join in co-operative farming.
  • Management problems : Generally, Indian farmers are used to operate the small land holdings but it is difficult to them to operate the large size holdings effectively. Due to lack of efficient managerial persons in villages the co-operative farming was discouraged.
  • Danger of Unemployment : There is a lot of scope for implantation of mechanization in co-operative farms which are large in extent. Usually mechanization generates unemployment of displacing labour with machines.
  • Domination of Landlords : The landlords in the system of co-operative farming never treat the small and margined farmers equal to them. The interests of share croppers, marginal and small farmers cannot be protected because of the domination of landlords in the co-operative farming.
  • Lack of trained Employees: Professional skill is necessary to operate and manage co-operative farms which are large in extent on contrary to the small individual holdings. Lack of such trained staff in our country, these co-operative farming societies are inactive.

6) Other Problems :

  1. It is a voluntary programme without any motivation to the peasants.
  2. The principles of distribution of profit between farmers and workers are not clearly defined.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 2.
Critically examine the role of special economic zones in Indian economic development.
The Government of India announced Special Economic Zones policy in April 2000. This policy aims at rapid economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Central and State level, with the minimum possible regulations. In India, while passing the SEZ Act in May 2005 and came into effect from February 2006, the following objectives were laid down.

  1. Generation of additional economic activity.
  2. Promotion of exports of goods and services.
  3. Promotion of investment from domestic and foreign sources.
  4. Creation of employment opportunities; and
  5. Development of infrastructure facilities.

Special Economic Zones in India : Upto 2013 number of formal approval Special Economic zones were 577. Number of SEZ notified and functioning are 389 and 170 respectively. The total units approved are 3589 and these units provide employment to 10,74,904 persons (as on March 31, 2013). The Special Economic Zones exports are ₹ 4,76,159 crore during the year 2012 – 13. As per the provision of the SEZ Act 2005, 100% Foregin Direct Investment is allowed.

Government Incentives to Special Economic Zones :
Government of India offers the following fiscal and incentive packages to Special Economic Zones.

  1. Exemption from custom’duties, central excise duties, service tax, central sales tax and securities transactions tax to both the developers and the units.
  2. Tax holidays for 15 years i.e, 100 percent tax exemption for 5 years, 50 percent for the next 5 years and 50 percent of the ploughed back export profits for the next 5 years.
  3. 100 percent income tax exemption for 10 years in a block period of 15 years for SEZ devleopers.
  4. Provision of standard factories at low rents with extended lease period.
  5. Provision of infrastructure and utilities.
  6. Single window clearance and simplified procedures.

Advantages of Special Economic Zones : Special Economic Zones are expected to give a big push to exports, employment and investment. In fact, the Government of India has been systematically projecting SEZs as “Carriers of Economic Properity”. The advantages of SEZs are as follows.

  1. Boost economic growth at an extremely fast rate.
  2. Usher in affluence in rural areas.
  3. Provide large number of jobs in manufacturing and other services.
  4. Attract global manufacturing and technological skills.
  5. Bring in private and public sector investment from both ‘ home and abroad.
  6. Made Indian firms more competitive and
  7. Help to slow down rural – urban migration.

To conclude, it may be stated that the standing committee report on SEZ in June 2007 is a path breaking document which indicates the direction in which the country must move if it wants to pursue industrialization with a human face.

Question 3.
Explain the Indian industrial growth rate during the five year plan.
The industrial pattern in India has undergone a marked change as a result of Five Year Pains, especially since the beginning of the Second Five Year Plan (1956 – 61). The number of bigger industrial establishments has multiplied and the proportion of producer goods in the composition of manufacturers has registered a striking is increase. Heavy and basic industries have come to occupy an important place in the industrial structure of India.

I. First Plan (1951 – 56) : Owing to the small size of the First Plan, insufficiency of funds and greater urgency or agricultural development, the First Plan did not make any big provision for industrial development. The overall industrial production increased by 39 percent i.e about 8 percent per year.

II. Second Plan (1956 – 61) : The actual investment in the public sector on organized industry was ₹870 crores in the second plan. In comprised 27 percent in the Second Five Year Plan’s total outlay.

III. Third Plan (1961 – 66) : The overall financial outlay in industrial sector during the Thrid Plan was ₹ 3,000 crores, out of which the outlay in the public sector was about 1,700 crores and the private sector was ₹ 1,300 crores. An overall target of 7 percent increase in industrial production was envisaged in the plan.

IV. Fourth Plan (1969 – 74) : During the Fourth Plan on the actual outlay organized industry was ₹ 2,700 crores in the public sector. The private sector investment was around ₹ 2,250 crores. The actual performance during the Fourth Plan in the industrial sector was very disappointing. Its average annual growth rate was hardly 5 percent as against the plan target of 8 percent.

V Fifth Plan (1974 – 79) : The Fifth Plan assigned a very important place to the development of industries with a view to achieving self – reliance and social justice. The public sector outlay on industrial development was around ₹ 9,700 crores. The average rate of industrial growth during the plan was targeted at 8.1 percent per annum.

VI. Sixth Plan (1980 – 85) : The public sector outlay of ₹ 23,000 crores was envisaged during the Sixth Plan period, during the sixth plan reveals that a growth rate of 5.45 percent as against 7 percent was achieved.

VII. Seventh Plan (1985 – 90) : The total investment in the industrial sector was ₹ 22,460 crores or 12.5 percent of the total plan outlay. The Seventh Plan achieved the targeted industrial growth rate of 8.5 per cent. It has been made possible because of adequate infrastructure and liberalization policy of the Government.

VIII. Eighth Plan (1992 – 97) : The Eighth Plan was formulated under a new environment when a number of reforms in industrial, fiscal, trade and foreign investment policies were introduced in the economy.

IX. Ninth Plan (1997 – 2002) : Ninth Plan allocated ₹ 69,972 crores for industry at 1996 – 97 prices. Ninth plan targeted a growth rate of 8% for industry. But it achieved only 5%.

X. Tenth Plan (2002 – 07) : In the Tenth Plan public sector outlay was ₹ 44,695 crores at 2001 – 02 prices. Industrial performance in the Tenth plan period improved to 8.9% from very low level of growth rate of 4.3% in ninth plan.

XI. Eleventh Plan (2007 – 12) : The total outlay in the Eleventh Plan is estimated at ₹ 36,44,718 crores. During this plan, the targeted growth rate is 10 – 11%. The target rate of growth achieved more or less in case of industry.

XII. Twelfth Plan (2012 – 2017) : Twelfth Plan envisages an investment of 50 lakh crores in 5 years. The private sector is expected to provide 25 lakh crores. To achieve industrial growth rate to the tune of 9.5% it would require much faster growth in the manufacturing as well as in electricity, gas and water supply sectors.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 4.
Define globalisation and what are the essential conditions of globalisation in India.
Globalization is the process of integrating or synchronizing domestic economy with the world economy or in simple words it is the process of opening up of domestic economy doors to the rest of the world.

Essential conditions for Globalization : There are some essential conditions to be satisfied on the domestic economy as well as the firm for successful globalization of the business.

They are :
a) Business Freedom : There should not be unnecessary government restrictions which come in the way of globalization. Like import restrictions, restrictions on sourcing finance, foreign investment etc. So, Liberalization is the pre condition for globalization.

b) Infrastructure facilities : The extent to which an enter¬prise and develop globally from home country base depends on the infrastructural facilities like water, transport, electricity, finance etc.

c) Government support: Although unnecessary government interference is a hindrance to globalization. Government support can encourage globalization. Government support may take the form of policy and procedural reforms, development of cofnmon facilities like infrastructural facilities.

d) Resources : Resources often decide the ability of a firm to globalize. Resourceful companies may find it easier to thrust ahead in the global market. Resources include finance, technology, R and D capabilities, managerial expertise etc.

e) Competitiveness : The competitive advantage of the company is an important determinant of success in global business. A firm may derive competitive advantage from any of the factors such as low costs and price, product quality, product differentiations, technological superiority etc.

f) Orientation : A global orientation on the part of the business firms and suitable globalization strategies are essential for globalization.

Question 5.
What are the economic implications of environmental degradation ?
Environmental degradation is slightly different from pollution. Environmental degradation is decrease in the quality of environment, whereas, the pollution is the contamination’ of the nature (air, soil, water) with harmful substances. Environmental changes may be driven by many factors including economic growth, population growth, urbanization, intensification of agriculture, rising energy use and transportation etc. The basic factors for environmental degradation are discussed below.

1) Social factors : Social factors, which are responsible for environmental degradation are briefly discussed below.
a) Population : Population is an important source of development yet it is a major source of environmental degradation when it exceeds the threshold limits of the support systems.

b) Poverty : Poverty is said to be both the cause and effect of environmental degradation. The circular link between both concepts is an extremely complex phenomenon. Inequality may faster unsustainability because, the poor, who natural resources more than the rich, deplete natural resources as they have no real prospects of gaining access to other of resources.

c) Urbanisation : Lack of opportunities for gainful employment in villages and the ecological stresses is leading to an ever – increasing movement of poor families to town. Mega cities are emerging and urban slums are expanding. Such rapid and unplanned expansion of cities has resulted in degradation of urban environment.

2) Economic factors : Environmental degradation is the result of market failure. In this context, environmental degradation is a particular case of consumption or production of externalities reflected by divergence between private social costs.

3) Institution factors : The Ministry of Environment and Forest of the government of India is responsible for protection, conservation and development of environment. Environment Act, 1986 is the key legislation governing environment management. Wild life Act 1972, the forest conservation Act 1980 etc.

Section – B (8 × 5 = 40)

Note :

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

Question 6.
Health programmes in India.
The Government of India have been making continuous efforts to provide universal access to comprehensive health and family welfare services of acceptable standards of quality human capital.

The family planning programme was started in 1951 as a purely demographic initiative.

1) National Rural Health Mission (NRHM) was started in 2005 to provide accessible, affordable and quality health services to rural areas. In the rural areas the Government extended National Rural Health Mission (NRHM) to towns as National Urban Health Mission (NUHM) in 2013. By combining NRHM and NUHM Government renamed it as National Health Mission (NHM).

2) Accredited Social Health Activities (ASHAs) have been selected arid trained in health care for various villages.

3) Janani Suraksha Yojana (JSY) was started to bring down Maternal Mortality Rate (MMR). According to this scheme nearly 3.5 crore women have been covered.

4) Pradhan Mantri Swasthiya Yojana (PMSY) has been launched with the objectives of correcting regional imbalances in the availability of reliable health care services in the country.

5) Rogi Kalyan Samitis.

6) Village Health and Sanitation Committees.

7) Mobile Medical Units.

8) Ayurveda Yunani Siddha Homeo (AYUSH) Services.

9) Janani Sishu Suraksha Karyakramam (JSSK) was launched for mother and child care.

The 12th plan main aim is Universal Health Coverage (UHC) for all in the country. UHC broadly means ensuring equitable access to affordable and quality health services to all the people in India. Regardless of Income level, Social status, Gender, Caste or Religion.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 7.
Defects in Agricultural marketing system.
No doubt, agricultural markets are operating efficiency in India, being influenced by the reforms and the process of globalization. However, the position of agricultural markets is deplorable in our country. The farmer is poor illiterate and ignorant. He does not have facilities to store his produce. He has caught in the evil hands of the middlemen. He has been suffering from the following defects of Agricultural marketing.

1) Inadequate storage facilities : There is lack of proper and sufficient storage facilities for the produce in rural areas. The available facilities are so bad and unscientific that more than 20 percent of the produce is eaten away by the rats.

2) Absence of proper Grading: The farmers are not getting a relevant price according to the equality of their products. They are not properly graded. They are sold in one common tot in heap of all quantities of produce consequently. The farmer producing products of better quality in not assured of a better price.

3) Inadequate transportabilities : Even today the farmers are using traditional means of transportation to move his produce to the markets. Railways and roadways are not properly connecting the village. Bullock carts are used to move the products. As a result, the farmer is forced to domp his produce at nearby weekly or daily markets. This is true particularly in the case of perishable commodities.

4) Existance of middlemen : More number of middlemen are operating in the agriculture marketing. As a result, the share of farmers is reduced in the prices realised for products sold in the market. Many studies observed that middlemen are grabbing almost 60 to 70 percent of the market price.

5) Malpractices in the markets : In the markets, the farmer is defective by the use of wrong weights and measures. He is also cheated by brokers and traders. The farmer has to pay weighing charge unloading charges, separation of impurities in the produce charges and many other miscellaneous undefined and unspecified charges.

6) Lack of adequate market information : The farmers are not having proper information about the prices existing in the markets. They are deprived of getting reasonable price for their products due to the inadequate information.

7) The farmers are unorganised: The farmers in India belong to different places, different languages and dialects and unorganized. The middlemen are strong and well organized. As a result, the farmers are unable to get proper price for their products.

Question 8.
1948 Industrial Policy Resolution of India.
After independence, Government of India issued the first important industrial policy statement on April 6,1948. This resolution laid the foundation of mixed economy in India.


  1. Establishment of a society where equal opportunities and justice to all.
  2. Increase in the standards of living of people.
  3. Removal of inequalities in income and wealth. In order to reach the objectives mentioned above, the resolution divided the industries into four broad categories.
    • Industries – where state (Government) had a monopoly.
    • Mixed sector – Industries in the private sector and Government controls them.
    • Those industries under the control of Government are the key industries. They are established by the Government. The existing private undertakings were allowed to continue for 10 years. After which Government will think of their Nationalisation.
    • All over industries which are not included in the above were left open to the private sector. However, the state will have its control over these units.

The important features noticed in the 1948 industrial policy resolution are :
a) Industries are classified into four categories.
b) The resolution accepted the importance of both private and public sectors in the speedy industrial development of Indian economy.
c) The 1948 resolution also accepted the importance of small and cottage industries.
d) The resolution also recognized the role of foreign capital and importance of regularization of its use.
e) The resolution also mentioned about the Nationlisation of private undertakings in case of unsatisfactory progress.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 9.
Regulated markets.
Regulated markets have been started with view to ensure remunerative price to the products of farmers reduce the price spread between the producers and consumers. It check all unfair practices in the market. Most of the States implemented Act of agriculture marketing. In India 1951, 200 regulated markets were started. In 2005 the number of regulated markets increased 7521.

Functions :

  1. Fixation of charges for weighing and brokerage.
  2. Enforcing the use of standardized weights.
  3. Providing up to date information of market prices.
  4. Prevention of unauthorised deductions and under hand dealings.
  5. Market licenses are given to the middle men and their number is to be minimized.
  6. Setting of disputes among the parties arising in market operations.
  7. Warehouses and cold storages should be provided to the farmers wherever necessary.

Question 10.
Explain the measures taken for balanced regional development.
As the problem of regional imbalance is multi dimensional and peculiar one, it is very difficult to bring balanced regional development. Though steps have been launched since second five year plan in this direction, still a lot is required to do. However, following things can be done to attain a balance between different regions.

  • Transfer of funds from the central pool to backward states.
  • Starting of industries by the Government in the backward regions, as private sector having bias towards developed regions.
  • Providing infrastructural facilities like electricity, telecommunications, transport etc., in backward regions.
  • Encouragement to industrial decentralization through regional planning and micro level planning.
  • Formation of Industrial estates in backward areas.
  • Special policies to the regions where frequent floods and drought occur.
  • Central assistance to develop hill and tribal areas.
  • Encouragement to small scale industries.
  • Provision of subsidies, tax concessions, tax holidays etc.

Question 11.
Enumerate 3 points in justification of privatization.
1) Improvement in efficiency and performance: The Private sector introduces the profit oriented decision making process in the working of enterprise leading to improved efficiency and performance.

2) Fixing Responsibility is Easier : While personnel in the public enterprises cannot be held responsible for any lapse, the areas of responsibility in the private sector is clearly defined. This makes it possible to take people to task in the private sector units for blunders committed by them, whereas in the public sector units, it is easy to pass the buck.

3) Private units are subject to capital market discipline : Private sector firms are subject to capital market discipline and scrutiny by financial experts. In fact, the ability to raise funds in the capital market is critically dependent on performance, but not so in the case of public enterprises.

Question 12.
What are the various factors resulting in environmental pollution ?
Pollutions are classified into different ways. They are classified according to their form, exsistence and natural disposal.

According to their natural disposal, the pollutants are classified into three groups.
1) Degradable pollutants : The pollutants are can be rapidly broken down by natural processe ace called degradable pollutants.
Ex : discorded vegetables, domestic sewage etc. These pollutants are called as Biodegradable pollutants.

2) Slowly Degradable pollutants : Some pollutants remain in the environment for many years in unchanged condition pollution results when their discharge exceeds the capacity of the environmental degrade them. These pollutants are actually waste products.
Ex : DDT, Plastic etc.

3) Non – Degradable pollutants : The pollutants which can not be degraded by natural processes are called as nondegradable pollutants once they enter into the environment, it is difficult to eradicate them They continue to accumulate in the environment.
Ex : Nuolear waste.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 13.
Discuss the sources and effects of water pollution.
Water is blue gold like air, water is very essential for the existence of all the riving organisms. It accounts for about 70 percent of the weight or the human body. About 80 percent of the earths surface is covered by water.

Water pollution is defined as “the addition of some substance or factor which degrades the quality of water, so that it becomes unit” for use”.
We have two sources of water surface and ground water.

Water that is found in streams, tanks, rivers and artificial reservoirs is called surface water. Water that per colates into the ground is called as ground water.

Sources of Water Pollution :
The major pollutants that pollute water are :

  1. Domestic wastes and Sewage
  2. Surface run-off
  3. Silt
  4. Industrial effluents
  5. Hot effluents.
  6. Fertilizers and Pesticides
  7. Accidental Oil spills
  8. Compounds of toxic metals
  9. Mining wastes
  10. Untreated waste water and garbage etc.,

Effects of Water Pollution : Water pollution generates the following effects.

  1. Transmits the water – borne diseases.
  2. Deteriorates the quality of drinking water.
  3. Affects the productivity of irrigated agricultural lands.
  4. Sea food becomes contaminated.
  5. Depletes oxygen in water. Brings undesirable changes in temperature and breeding of fish.
  6. Makes water unfit even for swimming
  7. Produces offensive odours in water.
  8. Water related diseases cause a heavy economic burden particularly for poor people.
  9. Leads to loss of human days due to illness.
  10. Children suffer from intestinal diseases.

Question 14.
Importance of tertiary sector in A.P. economy.
A service sector is the fastest growing sector in Andhra Pradesh as it is in total India. It is expanding as of agriculture is losing, the industrial sector being constant.

Service sector is the major contributor to the state GSDP with 48.54 percent in 2004 – 05 and increase further to 55.96 by 2013 – 14. ₹ 64.411 crore were contributed by the service during 2004 – 05 which increases enormously to 1,40,054 crore in 2013 – 14. This means only service sector alone is contributing more than half of the states GSDP. Same trend is also noticed in India where service sector is the single largest contributor to the GDP with more than 50 percent contribution. IT sector is the faster growing sector.

Service sector is the second largest among the three sectors with provides nearly 1/4th of the employment opportunities in the state. It is providing livelihood to nearly 25 percent of labour force, which is, on par with the national average (25.4 percent).

Question 15.
Bring out welfare schemes related to different sections in A.P.
The foremost objective of any welfare state is to sustain and improve the living standards of people. Although since a long time, agriculture and industry have been recognized as prime drivers of economic growth; social sector development is gaining ground especially in the context of human development. The concept of human development invariably highlights the importance of bringing improvement in the social infrastructure like education, health care, nutrition, water supply, housing, social security etc.

Further, public investment on these social overheads ensures social justice and equality in the society. Government of A.P has been implementing various welfare programmes schemes. Some of the important welfare programmes. The following table shows section wise – welfare programmes by A.P Government.
AP Inter 2nd Year Economics Model Paper Set 6 with Solutions 1
AP Inter 2nd Year Economics Model Paper Set 6 with Solutions 2

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 16.
Define the relation between M.D, S.D. & Q.D.
Measures of dispersion can be classified into five types.

  1. The range
  2. The inter quartile range and the quartile deviation
  3. The mean deviation or average deviation
  4. The standard deviation
  5. The Lorenz curve

The range and quartile deviations are positional measures because they depend on the values at a particular position in the distribution.

The average deviation and the standard deviation are called calculation measures of deviation because all of the values are employed in their calculation while the last method is a graphic method.

Question 17.
Calculate the Karl Pearson’s coefficient of correlation.
AP Inter 2nd Year Economics Model Paper Set 6 with Solutions 3
AP Inter 2nd Year Economics Model Paper Set 6 with Solutions 4
AP Inter 2nd Year Economics Model Paper Set 6 with Solutions 5

Section – C (15 × 2 = 30)

Note :

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

Question 18.
Per capita income.
The income per head per year is called per capita income. It is obtained by dividing the national income with population of the country.
Per capita income = \(\frac{\text { National income }}{\text { Population }}\)

Question 19.
Population explosion.
When the birth rate exceeds death rate during particular period of time.

Question 20.
Disguissed unemployment.
A person whose marginal productivity is zero or when more people are engaged in a job than actually required.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 21.
Poverty gap index.
The poverty gap index is defined by the mean distance below the poverty line expressed as a proportion of that line. The poverty gap index is insensitive to the extent of inequality among the poor. If income is transferred from a person to some one who is poor, the poverty gap index will not change.

Question 22.
Agro based industries.
Industries which depend an agriculture products for their raw materials are called agro based industries. Ex : Cotton, textile, flour mills, sugar etc., directly depend on agriculture for raw materials.

Question 23.
Land reclamation.
It means regaining the ownership on land after abolition of Zamindari system to make the land useful.

Question 24.
Organic farming.
It is the farming which uses natural fertilizers and pesticides.

Question 25.
Rural Infrastructure Development Fund was created in 1995 – 96 from out short form of commercial banks landing priority sectors and agriculture.

Question 26.
Industrial Finance Corporation of India. It was set up in July 1948, under a special Act. It was set up to provide medium and long term credit to industry to start new industries, expansion of old industries and for modernisation.

Question 27.
Special Economic Zones.
The Government of India announced Special Economic Zones policy in April 2000. This policy objective is at rapid economic growth supported by quality infrastructure complemented by an attractive fiscal package both at central and state level with minimum possible regulations. This act came into effect from February 2006.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 28.
Air transport has a vital role in the economic development of the country. It is the modern and quickest transport. In India the first commercial flight started on February 18th, 1911 The real progress in civil aviation started in 1920.

Question 29.
An umbrella term for service activities in the economy. Infrastructure is categorized into two groups. They are economic infrastructure and social infrastructure.

Question 30.
The communication system is an integral part of the development process. Communication means the transmission of information. By providing necessary information about markets and supply of goods. It consists of posts of telegraphs, telecommunications broadcasting, television etc.

Question 31.
Uruguay round.
There were 8 rounds of negotiations between participating countries in GATT in 1947. The 1st six rounds were related to curtailing tariff rates. Seventh round included non-tariff obstacles. 8th round is different from previous round. Because it included a number of new objects for consideration. This 8th round known as “Uruguay Round’.

Question 32.
Concept of Trips.
Trips refer to the legal ownership by a person or business of an invention attached to a particular product.

Question 33.
A deep, loud and unpleasant sound which is undesirable and unwanted.

Question 34.
Environmental externalities.
An externality is a consequence of an economic activity that is experienced by unrelated third parties. It is either positive or negative. Whenever economic activity is held environmental externalities should be considered.

AP Inter 2nd Year Economics Model Paper Set 6 with Solutions

Question 35.
Roadway in A.R
Roads are one of the basic modes of transportation system and also an important priority sector of infrastructure. Road transport carries more than 80% of the goods and passenger traffic. A.P has extensive road network of 1,46,954 km with 42,511 km of State Highways 3,144 k.m of National Highway and 1,01,484 km of District Roads.

Question 36.
Literacy rate in A.R
Literacy is the reading and writing skill of the people. The literacy rate is 67.35 in 2011 for A.R in which male literacy is 74.77 and that of female is 59.96. State has 5.64% less literates when compare to the Nation, West godavari stood in 1st place. Vizianagaram having lowest literacy rate.

Question 37.
Range is the simplest method of studying dispersion. It is defined as the difference between the value of the smallest item and the value of the largest item included in the distribution.
Range = L – S
Where L = Largest item; S = Smallest item.

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