AP Inter 2nd Year Economics Question Paper March 2019

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers and AP Inter 2nd Year Economics Question Paper March 2019 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Question Paper March 2019

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 feature of developing countries with special reference to India.
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 p.er 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 couhtries 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 commission estimated that there was a back log of 37 million unemployed at the beginning of 11th 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 68th 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 66th 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. Modem 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) Technological 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 modern 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.

AP Inter 2nd Year Economics Question Paper March 2019

Question 2.
What are the causes for poverty in India ?
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 noneconomic.
AP Inter 2nd Year Economics Question Paper March 2019 1

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 : In 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.

AP Inter 2nd Year Economics Question Paper March 2019

Question 3.
Explain the importance of Agricultural sector in the Indian Economy.
Agriculture plays a vital role in Indian economy and is the backbone of Indian Economy. It provides employment to around 55 percent of the total work force in the country. It provides raw materials for industries and market for industrial goods. It is the supplier of food for 121 crore people. India is the land of producing multiple goods (crops). In our country agriculture is not only an important occupation of people but also a way of life culture and customs.

Importance :
1) Share of Agriculture in the National Income : Agriculture sector, including forestry, fishing, mining, quarrying and allied activities like animal husbandry, horticulture, silk industry etc., is significantly contributing to the Gross Domestic Product in India.

The share of agriculture in National Income has been disclining gradually from 1950- 51. This is mainly due to the development of non-agriculture sectors during the five years plans in the economy. The share of agriculture in national income declined gradually from 56.5 percent in 1950 – 51 to 13.9 percent by 2013 – 14. The share of agriculture in national income in U.K. and U.S.A is 2 to 3 percent. The proportion is about 7 percent in France and 6 percent in Australia.

2) Employment Providing Sector : Agriculture dominates the economy to such an extent that a very high proportion of working population in India is engaged in agriculture.

Agriculture provided employment to 98 million peoples in 1951. The number of people working on lands both the cultivators and agricultural laborers increased to 234 million in 2011.

In case of developed countries the population engaged in agriculture is very much less. Ex : In USA and UK only 2 percent, in Japan and France 4 percent.

3) Importance in International Trade : For a long time three agricultural based exports of India like cotton textiles, Jute and tea accounted more than 50 percent. If we add other agricultural commodities the share of agriculture in exports will rise to 70 to 75 percent.

At present we are exporting Sugar, Cotton, Tobacco, Rice, Cashew nuts, Spices, Oilcakes, Coffee, Tea, Fish, Meat, Fruits, Pulses etc., to foreign countries. By exporting all these products we are earning foreign exchange.

4) Effective Social Safety Net: Though agriculture presently contributes less than 15 percent of Indians GDP yet it continues to employ more than half of the work force. If crops, animal husbandry, fisheries, agro-forestry, silk industry and horticulture are developed at household level, hunger and poverty will be alleviated. Green Revolution, along with White Revolution and Blue Revolution, provides income and employment to the rural poor by eradicating poverty. Thus, agriculture acts as an effective social safety net.

5) Food Supplier of the Expanding Population: The Hunger Index shows that India’s rank is 55 out of 76 countries. According to FAO, India is a hunger affected country. Because of the heavy Pressure of population the existing levels of food consumption in our country are very low. The per capita availability of food grains was 510.1 grams per day in 1991. But it has declined to 468.9 grams in 2013. Therefore, unless agriculture is able to increase continuously its marketed surplus of food grains a crisis will emerge.

6) Role of agriculture in Industrialization : Industries which depend on agriculture products for their raw material are called agro-based industry. Industries like Cotton, Jute, Textile, Sugar,. Flour mills, Edible oil etc., directly depend on agriculture for raw material. Some other industries like handloom weaving, rice husking, food processing, oil crushing, horticulture etc., are depend on agriculture, The development of agriculture sector will expand the demand for industrial goods. Thus the development of industrial sector facilities the development of agriculture sector by supplying inputs like machines, fertilizers, pesticides etc.

7) Market for Industrial Products : Two thirds of the populations of developing country like India lives in rural areas. The purchasing power of these people in rural areas is too low to purchase industrial products. If steps are taken to increase agriculture produce and productivity, the income of the rural sector will increase. As a result of increase in income of those who depend on agriculture in rural areas causes demand for industrial goods. The increased demand for industrial goods leads to the development of industrial sector.

8) Other Factors :
a) The development of agriculture sector directly promotes growth in transport sector.
b) Development of agriculture sector invites expansion of branches of banks into rural areas.
c) Agriculture development minimizes migration from rural to urban.
d) Farm tourism in rural areas can be developed through the development of agriculture.
e) Agriculture and its allied sectors play a key role in protecting biodiversity.

AP Inter 2nd Year Economics Question Paper March 2019

Question 4.
What are the merits and demerits of small scale enterprises in Indian economy ?
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 Tievelopment : 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 share 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 completely 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 units 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 upgra- dation 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 eleven five year plans.
Achievements :

  • India attained self-sufficiency with regard to the food grain production increased from 50.8 million tonnes into 264 million tonnes.
  • The growth rate in the national income increased from 3.6 percent in First plan to 8.3 percent by the end of 11 plan.
  • The percapita income increased from Rs. 1.32 lakhs crores in the first plan Rs. 47.67 lakh crores by the end of 11th plan. A considerable progress in the production of various industries like steel, aluminium etc.
  • Large scale development took place in infrastructural facilities like transportation irrigation tele communication etc.
  • India attained commandable progress in science, technology and research.
  • To control the increasing population, the family planning programme came into force for the first time in the sixth plan.
  • The industrial growth increased from 32 million tones to 583 million tones by the end of 11th plan.
    Failures of the plans : The Indian economy has made iignificant progress over more than fifty years of planning era. Still there are many weakness which point out towards the failures of Indian plans in many ways.
  • Despite more than sixty years of planned economic development. Still there exist the problems of poverty and unemployment.
  • Inspite of the several measures taken under land reforms. Still there exist inequalities with regard ownership of land. There is need for redistribution of land among the landless. So it can be said that the land reforms are not implemented property.
  • The plans are not able to control the volume of black money and corruption.
  • We are still have to go along way to reach the target of health to all.
  • Plans are not been able to reduce the economic concentration of income and wealth in the few plans.
  • Plans failed to achieved balanced regional development.

AP Inter 2nd Year Economics Question Paper March 2019

Section – B (8 × 5 = 40)

Note :

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

Question 6.
Causes of high birth rate in India.
Causes of the high birth rate :

I. Economic factors :
a) Predominance of Agriculture : India is predominantly agriculture economy. In an agrarian economy, children are considered assets and not burdens as they help in agricultural fields and also other sectors.

b) Slow urbanization process and Predominance of villages : The process of urbanization has been slow in this country and it has failed to generate social forces, which usually bring down the birth rate. The social system and family structure of rural life seem to survive transplantation to the town or city quite remarkably. According to sociological studies.

c) High incidence of Poverty : There is high incidence of poverty in India. Poor people tend to have large families as they consider every child as earning hand. In a poor country like India children are considered as an asset of generating income.

II. Social factors :
a) Compulsory Marriage : Marriage is both a religious and social necessity in India. Presently in India by the age of 50 only 5 out of 1000 Indian women remains unmarried. More marriages means more population.

b) Early Marriage : Not only marriages are almost compulsory, they take place at quite young age in India, which provides more time for women to give birth to children.

c) Religious beliefs and Superstitions : Most Indians due to their religious and superstitions desire to have more children having no regard to their economic conditions. Every child is considered as “Gift of God”.

d) Joint family system : Joint family system in India also encourages people to have large families.

e) Illiteracy : Lack of education among people especially among women causes people to have irrational attitudes and hence big families.

Question 7.
What are the different types of unemployment ?
Types of unemployment: Unemployment is broadly defined into two types.
A) Unemployment in Urban areas :
B) Unemployment in Rural areas :
AP Inter 2nd Year Economics Question Paper March 2019 2
A) Unemployment in Urban areas :
i) Educated unemployment: The large number of educated unemployed shows, “a measurement between the kind of job opportunities that are needed and that are available in the job market”. The defective educational system, with its theoretical base, lack of aptitude and technical qualifications for various types of working among job-seekers and Maladjustments between demand on supply of education workers are some well-known causes of educated unemployment.

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

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

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

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

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

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

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

AP Inter 2nd Year Economics Question Paper March 2019

Question 8.
Need for land reforms.
1) 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.

2) 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.

3) 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.

4) Increase Agricultural productivity: Land reforms are essential to increase the production and productivity in Agriculture.

Question 9.
Describe the impact of Green Revolution on Indian Economy.
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

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 in-equalities 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.
Industrial Estates.
Industrial estates are very useful in the development of small scale industries. An industrial estates refers to an area in which a number of small industries are concentrated. As a number of manufacturing units are located with in the same area, they can have common advantages like good site, electricity, water, communication etc. The production costs of the industrial units decrease as they get all facilities at one place for lesser cost.

Advantages :

  1. It providing and opportunity both rural and semi-urban areas to develop industrially.
  2. Giving scope to use the available local resources.
  3. More scope for regional development.
  4. It makes possible for small industrial units to realise the benefits of economics of scale.
  5. They can become the best ancillary units, when they are situated nearby the large scale industries.
  6. The small scale industrial units can make their production profitable by using the available facilities at one place for a lower cost.

Question 11.
What are the advantages of Roadways ?
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. Road 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.

AP Inter 2nd Year Economics Question Paper March 2019

Question 12.
Role of international trade.
The international trade plays a very vital role for the develo-pment of economic of the developing countries. .

  • Due to international trade when a country specializes in the production of few goods and divisions of labour, it exports the commodities which’ it produces cheaper in exchange for what others can produce at lower cost.
  • 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.
  • Due to international market opportunities, under developed countries started exploiting unutilized resources which will reduce unemployment and under employment.
  • Expansion of productive activities and expanded market opportunities leads to a number of internal and external economics, and hence to reduction of cost of production.
  • By enlarging the size of the market and the scope of specialization, international trade makes a greater use of machinery, encouraging inventions and innovation and raises labour productivity.
  • International trade helps to exchange domestic goods having low growth potential for the foreign goods with high growth potential.
  • International trade helps in importation of ideas, skills and technical know-how from the developed countries and stimulates technical progress in UDCs.
  • Developing countries are capital scarce economics. If a country actively participates in international trade, the unused capital resources of rich countries will fallow and utilized effectively in capital poor countries.

Question 13.
Reasons for regional imbalances in India.
Regional imbalances stand in the way of Nation’s Integrity, economic growth and development.
a) Geographical Reasons : Physical geography controls economic growth in developing countries than the developed countries. For example, Himachal Pradesh, Hill district of UP, Northern Kashmir etc., remained backward mainly because of inaccessibility.

b) Climatic Conditions: Climate too plays an important role in the economic development of many region 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 conducive facilities to drain Indian wealth to their country like Calcutta, Bombay etc.

d) Concentration of Industries : New investment, in the private sector has 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, where as 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., tend to remain underdeveloped.

Question 14.
Measures for the conservation of forests.
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 he 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.
Environmental protection activities in the state.
Andhra Pradesh having good environmental conditions. Its coast line is second in India and first in South Indian states. To protect this rich environment, steps have been taken by the State Government.
1) Environmental Protection Programmes : State is implementing programmes like Community Forest Management (CFM), National Afforestation Programme (NAP) etc.

2) Chettu – Neeru Programme : The State Government launched ‘neeru – chettu’ a programme aimed at conserving water and saving trees, in all districts in 2015.

3) Non-Conventional Energy : A.P Department of Energy decided to make the State as a largest “Green Energy Corridor”, by increasing the production of renewable energy through solar.

4) Vanamahotsava : Forest Department celebrated 64th Vanamahotsava in 2013 with view of “Two million tree plantation”.

5) Wildlife conservation : To protect the rich bio-diversity of Flora, Fauna and ecosystem Govt, declared 66 protected areas which include 13 wildlife sanctuaries and 3 National Parks. Biodiversity conservation society of A.P. has been constituted to take care of the conservation measures of wild life sanctuaries. The Seshachalam Biosphere Reserve has been notified and made functional.

Question 16.
Population characteristics of Andhra Pradesh.
The demographic characteristics of newly formed State of Andhra Pradesh with 13 districts (Coastal Andhra & Rayalaseema). The population of 4.96 crore which accounts for 4.1% of the country’s population makes it the 10th most popular state in the Country of this male are 2,48,30,513. A female population is 2,47,46,950 in 2011 census. Sex ratio for every 1000 male is 997 and female is 943 in 2011. Where the rural population is 349.67 in 2011, in total population the density of population goes up 304 per sq.km in 2011 census. The fertility rate in A.P is also showing a downward trend in the recent years. 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.

Question 17.
What is correlation ? State its importance.
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.

AP Inter 2nd Year Economics Question Paper March 2019

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.
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.

Question 20.
Population Explosion.
When the birth rate exceeds death rate during particular, period of time.

Question 21.
Sarvasiksha Abhiyan.
Sarva Siksha Abhiyan has been introduced during 2001 – 2002. With an aim to provide universal elementary education for all children in the 6 to 14 age group by 2010. SSA has now been renamed as Rajiv Vidya Mission in Andhra Pradesh.

Question 22.
This was initiated in 1979 with the objective of tackling unemployment problem among the rural youth. It aimed at training about 2 lakh rural youth every year to enable to become self employed. The TRYSEM was merged into Swamajayanthi Gram Swarozgar Yojana in April 1999.

AP Inter 2nd Year Economics Question Paper March 2019

Question 23.
Co-operative farming.
Co-operative farming means where the total land of village pooled into one unit and farmed’together.

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

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

Question 26.
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.

Question 27.
Tourism is the sub-sector of tertiary sector in general and services industry in particular. Tourism as “the activities of persons travelling and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.

Question 28.
Life Insurance Corporation of India was set up in 1956. LIC las 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 29.
What is Rolling plan ?
Rolling plan : This concept was introduced by Yunnar Myrdal. This kind of plan does not have a fixed period of time. It has only duration and moves forward, the completed year will be deleted and next year will be added.

Question 30.
The British ecologist A.G.Tansley coined the term Ecosystem in 1935. Eco system is the combination of natural and physical environment in a given geographical arc.
It is two types.

  1. Natural eco-system
  2. Artificial eco-system.

Question 31.
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.

AP Inter 2nd Year Economics Question Paper March 2019

Question 32.
Sustainable Development.
The process of development which sustains the human well being in future also.

Question 33.
Ozone Layer.
The Ozone layer is present in the stratosphere which is immediately above the troposhpere 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 34.
Project Tiger.
This programme is being implemented with the objective of increase the number of our National animal tiger. The Nagarjuna Sagar, Srisailam Tiger Reserve Spreads over the districts of Kurnool, Prakasam, Guntur which is the home to over 50 tigers and able to support even more.

Question 35.
Seaports in A.P.
Ports are a gateway to trade and commerce. A.P has the second longest coastline of 972 k.m. Gujaratin India. Ports provide development and growth of maritime activities. Visakha is the largest port in the State and also one of the largest port in terms of handling cargo in Country.

Question 36.
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 numbers.
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

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