AP Inter 2nd Year Economics Question Paper March 2018

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers and AP Inter 2nd Year Economics Question Paper March 2018 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Question Paper March 2018

Time: 3 Hours
Maximum Marks: 100

Instructions:

Note : Read the following instructions carefully :

1. Answer all the questions as per the choice specified. Draw suitable diagrams wherever necessary.
   
2. Questions from Serial Nos. 1 to 5 in Section – ‘A’ are of Long Answer Type. Each question carries ten marks. Any three questions may be answered out of five given questions. Every answer may be limited to 40 lines.
3. Questions from Serial Nos. 6 to 17 in Section – ‘B’ are of Short Answer Type. Each question carries five marks. Any eight questions may be answered out of twelve given questions. Every answer may be limited to 20 lines.
4. Questions from Serial Nos. 18 to 37 in Section – ‘C’ are of Very Short Answer Type. Each question carries two marks. Any fifteen questions may be answered out of twenty given questions. Every answer may be limited to 5 lines.

 

Section – A (3 × 10 = 30)

Note : Answer any three out of the following five questions :

Quetsion 1.
Explain the features of developing countries with special reference to India.
Answer:
Developing economies are distinguished from developed economies on the basis of their per capita income. Most of the economies are agarian in nature and their present rate of capital formation is low and inadequate to meet the requirements of their development.

According to United Nations “The countries which have real per capita income less than a quarter of the per capita income of the United States are developing countries”.

The following are the characteristic features of developing countries with special reference to India.
1) Low per capita income : One of the basic features of developing countries is low per capita income. The low income and middle income countries combined together are called developing countries.

The per capita G.N.I. of India has increased from $ 1,070 to $ 1,530 (2011) entered into the group of lower middle income countries.

2) Scarcity of capital : The rate of capital formation is low in most of the developing countries. In the most of developing countries the saving rates range between 15 to 20%.

According to C.S.O estimates the growth of gross domestic saving was 27.9% and capital formation was 24% in the year 2011 – ’12.

3) Unemployment: Wide spread unemployment is one of the important features of developing countries. In India unemployment is due to the deficiency of capital. There is disguised unemployment in rural areas. Around 60% of the population is depending on agriculture for employment. The planning conimission estimated that there was a back log of 37 million unemployed at the beginning of 11^th plan and it was expected that 82 million by the end of the plan.

4) Demographic characteristics : The developing countries are facing the problem of heavy population. They are successfully reducing the mortality rates by improving the medical facilities but failed to control the birth rates, this led to population explosion. India is also facing the problem of heavy population. It’s population was 1210 million in 2011 and it increased to 1278 million in 2015.

5) Predominance of agriculture : One of the basic features of developing countries is that they are predominantly agrarian economies. The share of agriculture in G.D.P is between 20 to 30%.

According to Indian economic survey 2013 – 14, 54.6% of the working population is engaged in the agriculture sector and it contributes 13.9% of the G.D.P.

6) High incidence of poverty : The another important feature of developing countries is the prevalence of mass poverty. The people in these countries suffer from low level of income, malnutrition, ill health and illiteracy.

India is also facing the problem of poverty. As per Tendulkar committee reports, the planning commission has updated the poverty line. Based on this; The percentage of population living below the poverty line was 29.8% in 2009 – ’10.

7) Income inequalities : The most important feature of developing economies is the disparities in income and wealth. Compared to the developed countries, the income inequalities are larger in the developing countries.

According to 68^th round of NSSO for the year 2011 – ’12 the monthly per capita consumption expenditure of the poorest 10% of the rural population rise by 11.5% in 2011 – ’12 compared with the 66^th round for the year 2009 – ’10. In urban areas, the growth was 17.2% and 30.2% respectively over the same period.

8) High density of population : The density of population is very high in the developing countries due to the large size of population. The density of population of the world was 50 per sq.km in 2011. It is in India was 382 per sq.km in 2011, where it was 3 in Australia, 33 in USA, 145 in China etc.

9) Low quality of life : The quality of life in the developing countries is very low in comparison with developed countries. These countries people suffer from malnutrition, high population, safe drinking water and lack of sanitation etc. The life expectancy at birth is below 65 years.

10) Technical backwardness : In the developing countries the production techniques are backward due to lack of research and development. These countries use labour intensive technique because high population and capital deficiency.

Indian economy is also technically backward. Modern and traditional techniques are used side by side in different sectors of the economy. It has affected the productivity in the economy.

11) Dual economy: Economists talk of various types of dualism existing in developing economies. They are :
a) Social dualism
b) Techno logical dualism
c) Financial dualism,

Indian economy also characterised by the dualism, the product and factor markets in India are divided with different degree of imperfections. Technological dualism is existed in India. There prevailed two kinds of economic sectors i.e., organised and unorganised sectors. The industrial sector uses the modem technology and agriculture sector still follows old method of production.

12) Price instability : The price instability is also basic feature of the developing countries. In India there is continuous price instability because of shortage of essential commodities and gap between consumption and production.

Question 2.
What are the causes for poverty in India ?
Answer:
Poverty can be defined as a social phenomenon in which a section of the society is unable to fulfill even its basic necessities of life.

There are two types of poverty.
1. Absolute poverty
2. Relative poverty

1) Absolute poverty : Absolute poverty of a person means that his income or consumption expenditure is so meager that he lives below the minimum subsistence level.

2) Relative poverty : Relative poverty merely indicates the large inequalities of income. Those who are in the lower income groups receive less than those in the higher income groups.

Causes of poverty : Poverty cannot be attributed to any one single set of causes. It is a complex phenomenon and as such is the outcome of interaction of diverse factors, economic and non-economic.

1) Underdevelopment : The root cause of poverty is the underdevelopment of Indian economy. Dandekar and Rath have argued that unviable and unprofitable farms with little capacity for capital accumulation have been responsible for rural poverty in India. Small and scattered holdings, lack of adequate inputs, lack of credit facilities and insecure tenancy system are all responsible for backwardness of Indian agriculture which causes rural poverty. Industrial development has failed to make any dent on poverty.

2) Unemployment and low levels of wages : Poverty is caused by under-employment or unemployment coupled with low rates of wages. This is because supply of labour is more than that of demand for labour. Due to shortage of capital, the industrial sector is not in a position to absorb more number of people. This causes poverty.

3) Population explosion fin India population has increased from 361.09 millions in 1951 to 1210.19 millions in 2011. Due to scarce capital and low level of technology, it is not possible to provide sufficient goods services to the fast growing population. Rapid growth of population is another important cause for the prevailing poverty in the country.

4) Inequality in Assets and Income Distribution : The relative poverty is to be attributed to inequality in the distribution of National Income. Most of the agricultural labourers are in a states of poverty because; they have less than one hectares land to cultivate. Likewise, inequality in the ownership of industrial and commercial capital is one of the reasons of urban poverty in India.

5) Low availability of essentials : Another important cause for poverty in India is the low availability of essential commodities. The country is not able to produce sufficient goods and services as needed by the rapid growing population. The consumer goods shortage is responsible for low level of standard of living. There is a wide disparity in the consumption levels of the top rich and the bottom poor.

6) Inflation : Continuous rise in prices is another cause of poverty. When the prices rise, the purchasing power of money falls and it leads to improverishment of the lower middle and poorer sections of the society. Inflation affects the living standards of the people having low incomes.

7) Failure of five year plans : The main objective of the planning is to provide minimum level of living to all its citizens. It was felt that growth rate achieved during the five decades of planning would not be sufficient to remove poverty.

8) Social factors : Economic development depends not only on available resources but also on social factors. Indian people lack initiative and resourcefulness. In short, dogmatic and fatalistic attitude is responsible for inertia, lack of initiative and dynamism. Thus, Indian social institutions and attitudes hamper economic progress and are responsible for perpetuating poverty. The caste system and joint family system and the laws of inheritance are a great obstacle to economic progress.

9) Political Factors : Being under foreign rule, India was exploited under the British regime. Since Independence, the other political factors have adversely affected the economic progress. We have political leaders who have placed self before service and who do not hesitate to enrich themselves at the cost of the country. The Indian administration is known to be corrupt and inefficient. The legislators would not pass laws which may help the poor. Some times they may hit their interest.

10) Institutional factors : There are certain institutional factors operative in rural areas as well as urban area having a strong bearing on ownership, management and work. Semi-feudalism is an institutional factor responsible for rural poverty. The social and political institutions in rural areas have not allowed the land reforms and technological reforms to make a dent on rural poverty. The government is providing agricultural inputs like electricity seeds fertilizers and credit facilities at subsidized prices to be farmers. But these facilities are not catering the needs of poor farmers having small holdings and also the tenants. The institutional rigidities have not allowed equitable sharing of public goods such as education and health.

Question 3.
Explain the defects in agricultural marketing and suggest some remedial measures.
Answer:
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 transport facilities : 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 market : 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.

After Independence the Government of India adopted a number of measures to improve the system of agricultural marketing.

1) Regulated markets : Regulated markets have been started with view to ensure remunerative price to the products of the peasants, narrow down the price spread between the producers and consumers and to reduce the non-functional margin of the commission agents. The regulated markets check all unfair practices prevalent in the marketing of farm produce. In most of the states Act of Agricultural Marketing has been passed. In 1951, more than 200 regulated markets were stated in India. By the end of March, 2005 the number of regulated markets increased upto 7521.

2) Co-operative marketing : The first co-operative marketing society’ was started in India in 1915 which was successfully implemented in Denmark. Co-operative marketing societies have been started with the purpose of giving credit to the farmers and marketing their surplus products. According to this system all the farmers of a village form together into a co-operative marketing society to sell their products at a fair price rate. The members of the society sell their products to the society. As soon as they supply the products to the society, they get an advance to carry their agricultural operations. As soon as the products are sold, the society pays the farmers the balance amount by deducting the advances already paid. These societies are maintained by.

3) Contract farming: Contract farming is another good remedy for solving the problems of agricultural marketing in our country. Contract farming is defined as “That farming in which sale contract is made between farmers and users of farm products”. For instance, some tobacco companies in Andhra Pradesh have sale contracts with the producers of tobacco. In the same way industries like Sugar, Cotton, Jute etc, have sale contracts with the farmers. The following are the benefits of contract farming.

4) Rythu Bazars : The Government of Andhra Pradesh has introduced the concept of Rythu Bazars on 26^th January, 1999 as a better programme for marketing agricultural products. These markets are established in urban and semi-urban areas. In these markets the farmers will sell their farm products directly to the consumers without the interference of middlemen. All the farm goods like Rice, cereals, pulses, vegetables, fruits etc. are available in these markets at reasonable prices. Both the farmers and consumers are the beneficiaries in these Rythu Bazars.

5) Facilities of grading and standardisation : The Government of India has done much to grade and standardize many agricultural goods. For. this purpose Government of India enacted legislation in 1937 and established grading centres at Jaipur, Bhopal, Nagpur, Bhubaneswar, Shillong etc. The physical and chemical properties of farm products. The graded goods and stamped with a seal of Agricultural Marketing Department – AGMARK. As a result the “AGMARK’1′ goods have wider market and better prices.

6) Warehousing facilities : If storage facilities are provided, the farmers will not be compelled to sell their products at lower prices. As a result, the farmers will store their products until they get fair prices. This facility enhances the bargaining capacity of peasants. On the basis of receipts issued against the products stored in the godowns, the farmers can also obtain credit from commercial banks and co-operative credit societies.

7) Transport facilities : Transportation plays an important role in making market system effective and useful. Cheap and easy means of transportation encourage the farmers to carry their products to the market and create confidence among the farmers. This will enhance the bargaining power of the farmers.

8) Credit facilities : It is noted that Indian agriculturist is always remaining under debt. The availability of adequate finance pulls him out of the pressure of money lenders to sell his products at unfair prices. Consequently, Government of India has established institutions like Primary Agricultural Co-operative Credit Societies, Commercial Banks, Regional Rural Banks etc.

9) Market information : The farmers should have perfect knowledge of prevailing market prices. This enables the farmers to get benefits of efficient marketing. Thus; market information relating to the prices can be provided to the farmers through Radio, Television, Newspapers etc.

Question 4.
What are the merits and demerits of small scale enterprises in Indian economy ?
Answer:
The small scale and cottage industries play a vital role in the Indian economy. As ancillary industries, they are contributing to the growth of the agriculture and industrial sectors in a developing country like India.

The recommendations of Abid Hussian Committee, the Government raised the investment limit on plant and machinery for small units and ancillaries to 3 crores and that for tiny units to ₹ 25 lakhs.

Merits :

• Expansion of small scale industrial sector and its share in industrial production : The rapid growth of small scale units from 2006 – 07 onwards contributing much to India’s gross domestic product.
• Employment opportunities: The small industries are labour intensive they could generate employment opportunities to the tune of 191.4 lakh persons in 1994 – 95, 249.3 lakh persons in 2001 – 02 and it increased to 1012.6 lakh persons in 2011 – 12.
• Capital formation : The spreading of industry over the country side would encourage the habits of thrift and investment in the rural areas.
• Low capital : The small scale units are best suited to the developing countries like India, which are labour intensive and capital scarce economics. It does not require much capital for the establishment of these units.
• Skill formation : A small scale enterprise does not require any sophisticate skill. But it provide industrial experience for large number of small scale managers.
• Low import intensity : Low import intensity in the capital structure of small scale enterprises reduces the need for foreign capital.
• Decentralized industrial development : Development of small scale industries will bring about decentralization of industries. It will promote the object of balanced regional development.
• Equitable distribution : The profits earned by small scale enterprises distributed among large number of enterpreneurs leads to decentralization of income and wealth.
• Exports : The contribution of small scale enterprises to earn foreign exchange is very high. The sh’are of exports from the small scale sector represents about 31.1% of total exports in 2006 – 07.

Demerits :

• Inefficent human factor : Most of the rural people are illiterates and lack technical know-how in the areas of production, finance, accounting and marketing management.
• Lack of credit facilities : The small industrialists are generally poor and there are no facilities of cheap credit either. Thus, they are caught up in the vicious circle of debt trap.
• Problem of raw materials : The quantity, quality and regularity of the supply of raw materials are all highly unsatisfactory. According to an estimate, about 40 percent of such units have become sick owing to non – availability of raw materials regularly.
• Absence of organized marketing : Since marketing is not properly organized, the helpless artisans are completly at the mercy of middlemen. The small scale units cannot afford to spend lavishly on advertisement to promote their sales.
• Lack of machinery and equipment : Small scale untis are facing inadequate modem machines and equipment. This leads to low productivity in small scale units.
• Power shortage : In recent years power shortage and frequent power cuts played havoc with small scale industries. More hours of power cut are there in rural areas which affect the growth of small scale units.
• Lack of technological up – gradation : It is found that the levels of productivity and technology used by the small scale sector are not globally competitive. Without technological upgradation these units may not serve in a globally integrated economy.
• Heavy taxation : Cottage and small scale industries have also to bear a heavy burden of taxation both on raw materials and also on finished goods.

Question 5.
Briefly review the achievements and failures of Eleventh Five Year Plans.
Answer:
The situation on the eve of planning was pretty bad. Though some plans have not fully realized their targets, the achievements made by planning in India are quite remarkable. The following account reveals the concrete achievements of the five year plans.

a) Increase in National and Per capita Income : One of the basic objectives of planning in our country is to increase national and per capita income. As a direct consequence of economic planning, India’s national and per capita income rose, though not as rapidly as the planners planned and anticipated.

The national income rose from ₹ 1.32 lakh crores at the beginning of the First Plan to ₹ 47.67 lakh crores by the end of Eleventh Plan i.e., 2012 at 2004 – 05 base year prices.

b) Progress in Agriculture : India attained self-sufficiency with regard to the food grain production. The food grain production increased from 50.8 mts. In 1950 – 51 to 264 mts. of record grain production in 2014. Similar trend can be observed in case of non-food crops like oil seeds, sugarcane and cotton etc.

c) Progress in Industry: Foundation for rapid industrialization was laid in the second planning itself. Many basic and capital industries were set up. Steel plants at Bhilai, Durgapur and Rourkela were established during the second plan. During the last Eleven Plans, the Government had invested heavily on development of industries. Nearly 55 percent of the total plan outlayers as allocated for industrial development. A considerable progress on the production of various industries such as steel, aluminium, goods, chemicals, fertilizers aiid petroleum products can be Wroessed.

The production of coal had gone up from 32 mt in 1950 – 51 to 583 mt by 2011 – 12. Production of irort ore went up from 3 mt in 1950 – 51 to 167 mt, i.e., 56 times increase by 2011 – 12. The generation of electricity which was only 5 bkw at the beginning of the First Plan to 877 bkw by 2011 – 12.

d) Development of Infrastructure : Another achievement of great significance is the creation of economic and social infrastructure which is the prerequisite of faster economic growth. This can be observed as :

• Total literacy rate in India which was mere 18.3 percent during First Plan increased to 74 percent in which male literacy is 82 and female literacy is 66 percent.
• As a result of Five Year Plans, India developed as Health Tourist Centre, in the sense that the health expense is very less in India and attracting foreign patients.
• A short fall can be observed in Infant Mortality Rate (IMR), Maternal Mortality Rate (MMR) and Child Mortality Rates (CMR).
• Indian transport system by all means (road, rail, water and civil aviation) on the eve of economic planning in 1950 – 51 improved a lot. The growth of network of Indian railways was 53,596 km in 1950 – 51, has increased to 63,220 km, presently Track distance of Indian Railways was 59,315 km in 1950 – 51 and raised to 80,908 km at present (36.4 percent growth).
• The Indian Air Lines and Air India both were merged and formed as the National Aviation Company of India Limited (NACIL) in November 2010. The merged has been renamed as Air India Limited. Presently, India is striving hard to be the 4^th big among the aviation markets by 2020. And the third in terms of domestic market after US and China.
• Energy : Coal, electricity and petroleum are important sources of energy.
• Coal : Coal is the main source of energy in the country. More than 95% of the coal production in India is of non-cooking coal. During 2012 – 13, 557.5 million tonnes of coal (including lignite) was produced while in 2011 – 12 the production was 540.8 million tonnes.
• Power: Electricity generation by power utilities during 2012 – 13 was 911.65 billion kWh. Installed capacity as on March 31, 2013 was 2,25,793 MW, comprising 1,53,848 MW from Thermal Power, 39,623 MW from Hydro Power, 27,542 from Non-Conventional sources and 4,780 MW from Nuclear Power.
• Petroleum and Natural Gas.: During the financial year (2012 – 13) production of crude oil is estimated at 37.86 million metric tonnes (MMT), which is about 0.60 percent lower than the crude oil production of 38.09 MMT during 2011 – 12.
• Cement : During 2011 – 12, totally 223.5 million tonnes of cement was produced in the country, registering about 6.7 percent increase over the previous year 2010 – 11.
• Telecommunications : The total number of telephone subscribers (basic and mobile) rose from 76.5 million in 2004 to 922.04 million at the end of January 2014.
• Banking : After 2009, the Indian banking scenario is going to change dramatically. Presently, the commercial banking system consists of 164 banks and 80,369 bank offices; out of these as many as 108 (including 82 regional rural banks) and 71,998 bank offices (including 15,415 offices of RRBs) are in the public sector. In addition, 74,505 ATMs are in operation.
• Irrigational facilities also widened through the construction of major, medium and minor projects.

e) Diversification of Exports and Imports : As a consequence of the policy of rapid industrialization, India’s dependence on foreign countries for the import of capital goods has declined. Due to the introduction of new economic reforms in 1990’s, Indian exports and imports underwent a drastic change.

f) Development of Science and Technology : Another significant achievement is the growth of science and technology and development of technical and managerial cadre. Our dependence on foreign experts has reduced and moreover India has now become a supplier of experts to every comer of the globe in the fields of information technology, communications, doctors, engineers, scientists and managerial expertise.

g) Development of a huge Educational System : One of the great achievements of planning era is placing India in second largest educational system of the World. The annual enrolment of students at primary, secondary, higher and technical education levels is growing year after year. The annumal status of education report (ASER) 2012, states that 96.5% of all rural children between the ages of 6 – 14 were enrolled in school.

Failures : The Indian economy has made significant progress over more than sixty five years of planning era. Still there are many weakness which point out towards the failures of Indian plans in many ways. Some of the failures are presented as under.

a) Despite more than sixty years of planned economic development, still there exist the problems of poverty and unemployment. In 2012 the Indian Government stated 21.9 percent of its-population is below its official poverty limit. (About 300 million people).

b) Inspite of the several measures taken under land reforms, still there exist inequalities regarding land, income and wealth. Distribution of surplus lands not completed.

c) One of the objectives of Indian Five Year Plans was to establish an egalitarian society. This could not be achieved so far.

d) The plans are not able to control the volume of black money and corruption. In Feb 2012 Central Bureau of Investigation (CBI) said that Indians have $ 500 billion illegal money (Black Money) based on a statement made to India’s’Supreme Court in July 2011.

e) We still have to go a long way to reach the target of Health to All.

f) Plans failed to achieve balanced regional development. Haryana per capita income is more than 4 times than that of Bihar.

Section – B (8 × 5 = 40)

Note : Answer any eight out of the following twelve questions :

Question 6.
What is the role of education in rural development ?
Answer:
Education can contribute significantly to rural development in a 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 and attitudes useful in improving the quality of family life. For example, through education on subjects such as health and nutrition and improvement, family planning and child care etc.

India, education help rural people in acquiring skills to setup cottage industries as their own. So that, the disguised unemployed people can be fruitfully employed in the villagers themselves.

These observations point to the necessity of reorienting the educational system to the requirements of rural population. If such a thing can be accomplished, there is redoubt that education will contributes significantly to the process of rural development in the country.

Question 7.
Explain briefly about Deen Dayal Upadhyaya Grameena Kaushalya Yojana (DDUGKY).
Answer:
Deen Dayal Upadhaya Grameen Kaushal Yojana was launched on 25^th September 2014 in view of 98^th birth anniversary of Pandit Deenadayal Upadhyaya. Earlier the Yojana was known as Aajeevika Skills Development Programme (ASDP).

The Rational launching the yojana : The Yojana was launched in light of solving huge problem of unemployment among the rual youth despite the fact that they have merits. In order to correct this match, Union Government decided to launch skill development programme scheme.

Status of skilled workers In India: In India as against 12 million people entering the work force every year during the last 10 years only 1 million youth were trained. Further out of 12 million people, only 10 percent were skilled ones, while the percentage in European Unions is 75 percent and in China 50 percent.

Main features of DDUGKY : The main features of the Deena Dayal Upadhyaya Kaushal Yojana are :

• The Yojana aims to give training 10 lakh rural youth for jobs in three years, that is by 2017.
• The minimum age for entry under the Yojana is 15 years compared to 18 years under the Aajeevika skills programme.
• Skill Development training centre’s to be launched. So as to address the unemployment problem in rural area.
• The skills imparted under the Yojana will now be bench marked against international standards and will compliment the Prime Minister make in India compaign.

This scheme was launched to enhance the employability of rural youth which is the key to unlocking India’s demographic dividend. A sum of ₹ 1500 crores was allotted for this scheme in the 2015 – 16 budget.

Question 8.
Explain the present conditions of agricultural labourers.
Answer:
The people who work on agriculture sector for their survival can be treated as agricultural labour. Agricultural sector never provides full employment and wages continuously throughout the year. Hence, it is necessary to them to work in non-agricultural sector for livelihood.

The First Agricultural Labour Enquiry Commission 1951 has defined the farm labour as “The labour who work in agriculture sector more than 50 per cent of the working days in a year “is treated as agricultural labourer.
The Second Agricultural Labour Enquiry Commission – 1957. has defined “The Farm Labour as the labour who receive more than 50 per cent of their income from agricultural sector”.

Conditions of Agricultural Labourers :
1) Low Social Status : Most of the agricultural labourers are belonged to the depressed classes. They have been neglected for ages. In case of such farm labourers, exploitation has become common and they have hot fought for their rights.

2) Unorganised : Agricultural labourers are living in scattered villages. Moreover, they are illiterates. Hence, they cannot easily to be organized. As a results it is difficult for farm labourers to bargain with the land owners for good wages.

3) Seasonal Employment : Agricultural labourers have to face the problems of unemployment and underemployment. They are employed while sowing and harvesting season, but a substantial part of the year they remain unemployed. Unemployment and underemployment are important factors of low income which result in low standards of living for agricultural labour.

4) Low Wages and Income : Agricultural wages and family incomes of agricultural labourer are very low. The wages of farm labdurers vary from state to state. In case of attached labourers these wages are pathetic. In most of the states except Karnataka, Punjab and Uttar Pradesh money wages are low. With the advent of the green revolution, money wage rates started increasing. However, as prices also increased considerably, the real wages rates did not increase much.

5) Rural Indebtedness : Because of the low level of income agricultural labour generally seek debts. However, because of extreme poverty, they are not in a position to provide any security. Hence, it is inevitable on part of the farm labourers to resort non institutional organizations like land lords and money lenders for debt who collect high rate of interest. In fact the debt of agricultural labourers passes from generation to generation and become bonded labour.

6) Femanisation of Agricultural labour : Female agricultural workers are generally forced to work harder. They are paid less wages comparatively to male workers.

7) High Incidence of Child labour : It is estimated that one – third of child labourers in Asia are in India. The largest numbers of child workers are engaged in agriculture. Wages paid to child labourers are too low which adversely affect the incomes of their households.

8) Lack of subsidary professions : Another serious problem that is being faced by farm labourers is lack of non-agricultural occupations in the villages. As there is no work on the fields, agricultural labour has no other means to earn for subsistence. Thus, they are disguised and are burden on land.

Question 9.
Describe the Impact of Green Revolution in Indian Economy.
Answer:
Impact of Green Revolution on Indian Economy :
1) Increase in Foodgrain production : The rice production from 35.0 mts in 1960 – 61 increased to 99.37 mts in 2008 – 09. The production of wheat was 11.0 mts and rose to 77.63 mts. The production of pulses was only 12.7 mts in 1960 – 61 which has increased to 14.2 mts. Totally production of food grains was 82.0 mts in 1960 – 61 and that has increased 229.9 mts by the year 2008 – 09.

2) Boost to employment generation : Green revolution is the small farm revolution. Labour intensive crops like rice, sugarcane, potato, vegetables, fruits have increased the employment opportunities in agriculture sector. The entry of corporate houses has generated more employment opportunities in retailing business of fruits and vegetables.

3) Improvement in incomes : The impact of green revolution revealed that the farmers in Kerala, Madhya Pradesh, Andhra Pradesh, Tamilnadu, Gujarat, Punjab and Himachal Pradesh had good chances of improving their incomes. It facilitates the farmers to follow simple but scientific and technical ways like grading the produce in the field itself selling directly to the corporate retail companies by avoiding middlemen. Organised retailers have provided better remunerations to the farmers. So the consumers were benefited in the form of quality produce at lower prices.

Therefore the green revolution has also widened the inequalities between big and small farmers in rural areas.

4) Forward and backward linkages strengthened : Agriculture supplies raw material to industries which is known as forward linkage. The new technology in agriculture has strengthened the backward linkage. This way the linkage between agriculture and industry has got strengthened.

5) Decrease in Poverty: The result of green revolution surplus in the production of food grains is actived.

Question 10.
Objectives of National Manufacturing Policy.
Answer:
Government of India brings back industrial policy into focus in the form of National Manufacturing Policy on November 4, 2011.

Objectives :

1. Increase manufacturing sector growth to 12 – 14% over the medium term.
2. Create 100 million additional jobs in the manufacturing sector by 2012.
3. Increase the share of manufacturing in gross domestic product 160%, 25% by 2022.
4. Create appropriate skills among the rural and urban migrant.
5. Increase domestic value addition and technological depth in manufacturing.
6. Enchance global competitiveness of Indian manufacturing.

Question 11.
Explain the advantages of Roadways.
Answer:
The principle mode of connectivity between places in roadways. India has one of the largest road networks in the world, spread over 48.65 lakh k.m. district and villages road constitutive 95.2% of the total road network in our country.

Advantages of Roadways :

1. Road transport connects all the villages and regions and finally it connects to the railways.
2. Road transport does not required heavy capital expenditure.
3. The chances of delay, damages are less in case of road transport.
4. Roqd transport provides transports the goods to the railway station.
5. Road transport help the farmers particularly easily and quickly to transport to mandis and towns.
6. Road transport is more Flexible when compared to other means of transport. It can provide door to door service.
7. Enables to defence forces to move areas inaccessible by railways in emergencies.

Question 12.
Reasons for regional imbalances in India.
Answer:
Regional imbalances stand in the way of a Nation’s Integrity, economic growth and development.

a) Geographical reasons : Physical geography controls economic growth in developing countries than the developed countries. For Ex : Himachal Pradesh, Hill district of UP, Northern Kashmir etc., remained backward mainly because of in accessibility.

b) Climate conditions : Climate too plays an important role in the economic development of many regions in India, region with adverse climatic conditions reflected in low agricultural output and absence of large – scale industries.

c) British rule : Historically, the existence of backward regions started from the British rule in India. The British helped the developed of only those regions which are endowed with conductive facilities to drain Indian wealth to their country like Calcutta, Bombay etc.

d) Concentration of Industries : New investment, in the private sector has a attendance to concentrate in already well developed areas, thus reaping the benefits of external economic. Since, well developed area offers private investors certain basic advantages viz., skilled labour, infrastructure, transport etc.

e) Scarcity of Natural Resources : Certain regions are endowed with natural resources, whereas same regions are not. Those regions with great natural resources endowment are developed faster.

f) Lack of Infrastructural Facilities : Those regions where there are no proper roads, electricity, telecommunication, drinking water, education, medical, technical, training facility etc., they tend to remain underdeveloped.

Question 13.
Functions of W.T.O.
Answer:
The signing of the Final Act of the Uruguay Round by member nations of GATT in April 1994 paved the way for the setting up of the World Trade Organization (WTO). An agreement to this effect was signed by 104 members. The WTO agreement came into force on January 1, 1995 and India became a founder member of the WTO, by satisfying the WTO Agreement on December 30, 1994. Yemen joined WTO as its 160th member in 2013. GATT was replaced by WTO as GATT was not really an organization and merely a legal arrangement. Its head quarter is at Geneva.

Functions of WTO : The WTO has the following functions.
a) WTO 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 minor national trade policies of the 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.
Measures for the conservation of forests.
Answer:
Forests are the carbon sinks and treasures of scenic beauty. The following are some protective measures such important forests.

1. Forest land should not be alloted to poor for house sites.
2. Specific areas must be developed under social forestry programmes.
3. Waste land must be brought under plantations.
4. Forest must be protected from fires particularly in summer.
5. Measures must be taken to refill the depleted forest area.
6. Establishment of Joint Forest Management Communities is necessary.
7. Cattle grazing and illegal cutting of trees should not be allowed.
8. Local communities must be involved in the conservation of forests.

Question 15.
Occupational distribution of labour in A.P.
Answer:
Occupational distribution pattern in any country decides the level of economic growth. Any economy can be divided into

1. Agriculture sector
2. Industrial sector
3. Service sector

Dividing the total population according to their occupation or work is known as occupational distribution of population or labour.

According to the statistical abstract of A.P 2014, prepared on the basis of the 2011 census, the total number of workers is A.P is 2,30,80,964. Among them, the total number of workers in industry sector in A.P is 33,40,133 which is 14.47% of total work force. Total number of workers related to primary sector is 1,43,92,736. i.e., 62.36% and 34.77% of total work force based on service sector.

The number of people depending on agriculture sector is still very high. Tertiary sector is in the second place and providing livelihood to the larger percent of population after agriculture sector. In A.P secondary sector’s contribution is steady and constant.

Question 16.
Importance of Tourism in A.P.
Answer:
Andhra Pradesh Tourism Development corporation is state government agency which promotes tourism in A.P. 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 are 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.
What is correlation ? State its importance.
Answer:
Correlation is an analysis of the co-variation between two or more variables.

1. The correlation is a statistical device which help to analyzing the co-variation between two or more variables.
2. If the value of a variable is given, we can know the value of another variable.
3. With the help of correlation we can predict about the future.
4. It helps us in knowing the important variables on which other depend.
5. In the field of commerce and industry, the technique of correlation coefficient helps to make estimates like sales, price or costs.

Section – C (15 × 2 = 30)

Note : Write notes on any fifteen out of the following twenty questions :

Question 18.
Economic Development.
Answer:
Economic development refers to not only economic growth but also progressive changes in the socio-economic structure of a country.

Question 19.
Tertiary 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 20.
Population Explosion.
Answer:
When the birth rate exceeds death rate during particular period of time. It appears in the 2^nd stage of demographic Transition Theory of population.

Question 21.
Sarva Siksha Abhiyan.
Answer:
This was introduced during 2001 – 2002 with an aim to provide universal elementary education for all children in the 6 to 14 age group by 201- 4 SSA has how been renamed as ‘Rajiv Vidya Mission’ in A.R

Question 22.
Absolute Poverty.
Answer:
Absolute poverty of a person means that his income or consump¬tion expenditure is so meager that he lives below the minimum subsistence level.

Question 23.
AGMARK.
Answer:
It is simply an abbreviation for agriculture marketing which is the symbol of quality of produce.

Question 24.
Marketable Surplus.
Answer:
Marketable surplus is the available surplus for marketing after meeting all the requirements of the farmers.

Question 25.
Co-operative Farming.
Answer:
Co-operative farming means where the total land of village pooled into one unit and farmed together.

Question 26.
Small Industries Development Bank of India (SIDBI).
Answer:
Small Industries Development Bank of India with a view to ensure largest flow of financial and non-financial assistance to the small scale and cottage industries. The SIDBI Act wets passed by the Parliament in 1989 and the Bank commenced its operation from April 2^nd 1990.

Question 27.
LIC
Answer:
Life Insurance Corporation of India was set up in 1956. LIC has its central office at Mumbai with 7 zonal offices, 101 divisional offices and 2,048 branch offices. It mobilise savings of the public to invest in the Industrial securities.

Question 28.
Micro Insurance.
Answer:
A system that blends insurance with savings and credit practices. The member of self help groups, farmers, migrant workers and tribals are the target groups for this micro finance. This insurance offers both individuals and group insurance services.

Question 29.
Define Globalization.
Answer:
It is the process of integrating various economies of the world without creating any hindrance in the free flow of goods and services, technology, capital even labour or human capital.

Question 30.
Ozone Layer.
Answer:
The Ozone layer is present in the stratosphere which is immediately above the troposphere at a height of 12 k.m. from the earth. It is 40 k.m thick layer. Ozone absorbs the dangerous ultra violet rays from the sun and protects life on earth from death.

Question 31.
Water Pollution.
Answer:
It is defined as “the addition of some substance or factor which degrades the quality of water, so that it becomes unfit for use”. The major pollutants that pollute water are domestic wastes and sewage silt etc.

Question 32.
Sustainable Development.
Answer:
The process of development which sustains the human wellbeing in future also. This concept was given by Brut land Commission in the year 1987. In its Report “Our Common future”.

Question 33.
Biodiversity.
Answer:
The word biodiversity was coined by Walter Rosen in 1986. The variety and variability among living organisms is called as biodiversity or totality of genes species and ecosystems in a region.

Question 34.
SGDP.
Answer:
The state gross domestic product may also be called as the state income. The state gross domestic product is defined as the total value of the final / finished goods and services produced with in the geographical boundaries of the state during a year.

Question 35.
Project Tiger.
Answer:
This programme is being implemented with the objective of increase the number of our National animal tiger. The Nagaijuna Sagar, Srisailam tiger Reserve spreads over the district of Kumool, Prakasam, Guntur which is the home to over 50 tigers and able to support even more.

Question 36.
Range.
Answer:
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

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.