AP Inter 2nd Year Economics Question Paper May 2017

Thoroughly analyzing AP Inter 2nd Year Economics Model Papers and AP Inter 2nd Year Economics Question Paper May 2017 helps students identify their strengths and weaknesses.

AP Inter 2nd Year Economics Question Paper May 2017

Time: 3 Hours
Maximum Marks: 100

Instructions:

Note : Read the following instructions carefully :

1. Answer all questions as per the choice specified. Draw suitable diagrams wherever necessary.
2. Questions from Sr. 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 Sr. 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 Sr. 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 :

Question 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 commission 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 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.

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 : 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 or 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 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 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 resource-fulness. 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 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.
What are the causes for low productivity in agriculture in India ? Suggest the measures to improve it.
Answer:
Agriculture plays a predominant role in Indian economy. The productivity in Indian Agriculture is too low when we compared to the agricultural productivity of other countries in the world.

The causes for low level of Agriculture productivity in India are manifold. They can be grouped into four broad categories,
1. General causes
2. Institutional causes
3. Technical causes
4. Environmental causes

1. General causes:
i) Pressure of Population on Agriculture: Pressure of population on agriculture is heavy as a result of high growth rate of population and slow growth rate of other sectors of the economy. In 2011, about 263 million workers out of 348 million rural working populations are employed in agriculture. Increasing pressure of population on agriculture results, in the subdivisions and fragmentation of holding. Consequently, the productivity in agriculture sector remains low in India.

ii) Social Environment : The social environment of villages is an obstacle in agricultural development. The farmers in rural are illiterate, superstitious, conservative and unresponsive to new agriculture techniques. The decline of joint family system and land hunger are also discouraging to rural atmosphere. Peasants are not able to take proper care of their agriculture. Unless this atmosphere is changed, it is too difficult to enhance the productivity of agriculture.

iii) Lack of Infrastructural Facilities : Infrastructural facilities like transport, storage, credit and marketing are inadequate in rural areas to the growing population, due to lack of these adequate infrastructure facilities, the agricultural productivity in rural areas in very low.

iv) Impact of the British Regime : During British rule in India, they have not shown any interest in developing agriculture sector but made our economy as colonial one. Moreover, their policies like land tenure system, collection of land cess gave a deadly blow to the Indian agriculture.

2) Institutional causes :
i) Uneconomic Land Holding : According to the National Sample Survey, 52 percent land holdings had a size of less than 2 hectares in 1961 – 62. In 2010-11, 85 percent of total land holdings are less than 2 hectares. As a result of laws of inheritance and other reasons there is further divisions and fragmentation of land holdings. Hence, these small holdings are adversely affecting productivity of agriculture.

ii) Defects in Land Tenancy System : The Indian agriculture system was adversely affected before Independence because of defectives in Zamindari, Jagirdari, Mahalvari systems which exploited the farmers. In this system lack of certainty in rent, security of tenure and ownership right the tenants don’t show any attention to develop agriculture. Hence, India has become less productivity.

iii) Lack of credit and marketing facilities : The cultivators are not able to invest requisite sources in agriculture due to lack of marketing facilities and required credit at fair rate of interest. Even support price policy and subsidies to inputs of agriculture fired by the Government are unsatisfactory. Hence, peasants follow traditional methods which results in low productivity.

3. Technical causes :
i) Outmoded Agricultural Techniques : T.W. Schultz of famous economist opined that the peasants in India are still using traditional or outmoded techniques. Indian farmers are still using wooden ploughs, bullock carts, sickles etc. Use of fertilizers and new high yielding varieties of seeds is also extremely limited. Hence, the productivity in agriculture is low.

ii) Inadequate Irrigation Facilities : Gross cropped area in India in 2010 – 11 was 198.97 million hectares but only 89.36 million hectares of land had irrigation facilities. It implies that 55 percent of the gross cropped area continues to depend on rains. Rainfall is often insufficient, uncertain and irregular. In such atmosphere it is difficult to extend the new agri6ultural technology all over the country.

iii) Scarcity of Agricultural Inputs : The supply of modem agricultural inputs like fertilizers, pesticides, hybrid seeds, farm machinery etc., are inadequate to meet the requirements of our country. In order to achieve high production in agriculture requisite supply of inputs is essential.

4) Environmental causes: Environment also plays a vital role in affecting the productivity of agriculture, increase in the temperature. Degradation of soil, changes in temperature, pollution of water and air etc., adversely affect the productivity of agriculture are

1. Global warming.
2. Soil degradation.
3. The intensive cultivation of high yielding variety crops.
4. The reckless use of fertilizers.
5. Shifting cultivation.
6. Displacement of the traditional practices of crops.

Measures to increase agricultural productivity in India :

1. The proportion of people depending upon agriculture must decrease. Development of non-farm activities in rural areas go a long way for decreasing the dependency load in agriculture.
2. A favourable support price policy leads to increased yield levels in agriculture.
3. Agriculture, like industry must be protected for favourable terms of trade.
4. Public investment in agriculture must increase.
5. Timely and adequate institutional credit automatically enhances the access to vital inputs in agriculture.
6. Strict implementation of land reforms is necessary. Land reforms remove the structural deficiencies in agriculture.

Question 4.
Explain the 1991 New Industrial Policy Resolution of India.
Answer:
Industrial policy statement 1991 brought rapid structural changes in the economy of India. Most of the state owned units were running with huge losses. Government was not interested to run the state owned units. So as part of economic reforms generally known as liberalization, privatization, globalization and a new industrial policy became inevitable.

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

Main features : In order to explore and exploit the industrial potential of the country, the following decisions.

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

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

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

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

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

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

They are

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

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

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

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

Question 5.
Explain the causes of regional imbalances in India. Explain the measures taken for balanced regional development.
Answer:
a) Geographical reasons : Physical geography controls economic growth in developing countries than the developed countries. For Ex : Himachal Pradesh, Hill districts of UP, Northern Kashmir etc., remained backward mainly because of in accessibility.

b) Climate condition : Climate too plays an important role in the economic development of many regions in India, regions 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 development 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 tendency to concentrate in already well developed areas, thus reaping the benefits of external economics. 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 some regions are not. Those regions with great natural resource 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, credit facilities etc., they tend to remain underdeveloped.

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

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

Section – B (8 × 5 = 40)

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

Question 6.
Write the importance of human resource development.
Answer:
Many statistical investigations carried out in the western countries have shown that output increased at a much higher rate than can be explained by an increase in physical inputs like labour and physical capital. This has been consistently improving due to improvement education skills, availability of health services etc. Therefore, along with physical capital formation, human development has also been playing a vital role in economic development.

The term human resource development refers to the “Process of acquiring” an increasing the number of persons who have the – skills, education and experience which are critical for economic and political development of a country. Human resource development is thus associated with investment in man and his development as a creative and productive resource. According to Schultz, there are five ways of developing human resources.

1. Health facilities and services, broadly conceived to include all expenditure that effect the life expectancy, strength and stamina and vigor and vitality of the people.
2. And the job training, including old type apprenticeship organized by firms.
3. Formally organized education at the elementary, secondary and higher levels.
4. Study programmes for adults that are not organised by firms, including extension programmes notably in agriculture.
5. Migration of individuals and families to adjust to changing job opportunities.

Importance of Human resource development : Human resource development plays an important role in economic development. Infact, effective use of physical capital itself is dependent on human resources. This is due to the reason that if there is under investment will be limited since technical, professional and administrative people required making effective use of material resources. Modem economists in recent years have pointed out that many third world countries have remained underdeveloped on account of under development of human resources. Therefore, large scale investment in human resources are needed if physical capital available in these countries is to be exploited more fully and in a more efficient way.

Question 7.
Write-about MGNREGS.
Answer:
Mahatma Gandhi National Rural Employment Guarantee scheme) This scheme was launched from 2^nd October 2009, MGNREGS seeks to provide at least 100 days of guaranteed wage employment in a financial year to at least one number of every rural household whose adult members voluntary to do unskilled manual work. At least 33% of the beneficiaries are to be women under MGNREGS wage disbursement through bank and post office is mandatory. This is to help in “financial inclusion” of the poor. It provides a wage rate of ₹ 100 per day to a worker. The focus of MGNREGS is an workers relating to water conservation, drought proofing, land development, flood control and rural connectivity etc. Panchayats have a key role in planning, implementation and monitoring of MGNREGS. This Act is useful for decentralization and deepening gross root democratic structure.

Question 8.
Write about the need for land reforms in India.
Answer:

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

Question 9.
Explain the defects in the agricultural marketing in India.
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 ifliterate 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 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 dump his produce at nearby weekly or daily markets. This is true particularly in the case of perishable commodities.

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

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

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

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

Question 10.
Write about Industrial Credit and Investment Corporation of India.
Answer:
It played a role in consolidation in various sectors of the Indian Industry, by financing, mergers and acquisitions. The ICICI, groups financing and banking operations both wholesale and retail.

Functions :

1. Guaranteed loans from other private Government source.
2. Provided financial services such as differed credit, leasing credit, installment sale, asset, credit and venture capital.
3. It offered long term and medium – term loans, both Indian currency and foreign currency loan.
4. Participated in equity capital and in debentures and under wrote new issues of shares and debentures.

Question 11.
What are 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 hot 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.

Question 12.
Explain the role of International Trade.
Answer:
The role of international trade in economic development is significant. In modern days all countries irrespective of their financial status are depending in participating in international trade. Economists found a positive association between country’s participation in international trade and its level of economic growth.

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

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

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

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

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

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

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

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

Question 14.
Write about the need for environmental preservation.
Answer:

• Moral persuasion, which is an appeal to reduce pollution in the broader interests of the society and making people involved in the environmental protection activities.
• Methods of recycling should be made compulsory in which production units are restricted to maintain certain level of environmental protection activities.
• Fiscal controlling techniques should be implemented such as
  a) Levying of an affluent charge or pollution charge and revenue so collected should be redirected for the purpose of environmental protection.
  b) Giving subsidies on pollution control equipment and encouragement of eco-friendly techniques of manufacturing.
  c) Refundable deposit, which is, collected from the polluters and refunded after his activities cease.
  d) Pollution permits should be fixed and to see each production unit is functioning with in the limits.
  e) Industrial permits should be linked with the maintenance of plantation in proportion to its production activity.
• Government investment programmes such as waste treatment plants, slum clearance and management of wild like refugees, reforestation and afforestation are some policy instru-ments available to control pollution and preserve environmental equity.
• As the children are the future citizens, awareness on environment and its protection should be introduced as a part of their curriculum. An effort is made by the government in this direction and now environmental education is mandatory part in education system from school level and onwards.
• So far, government of India enacted some of the following acts for environmental protection.
  a. The Wild life Protection Act, 1972.
  b. The Water (preventionfand control of pollution) Act, 1974 amended in 1978 and 1988.
  c. The Air (prevention and Control of Pollution) Act, 1981.
  d. The Air (prevention and Control of Pollution) Rules, 1982.
  e. The Forest (conservation) Act, 1980 amended in 1988.
  f. The Environment (protection) Act, 1986.

Question 15.
Explain the environmental protection activities in Andhra Pradesh.
Answer:
Andhra Pradesh having good environmental conditions. Its coastline is second in India and first in South Indian states. To protect this rich environment, steps have been taken by the State Government.

• Environmental Protection Programmes : State is implementing programmes like Community Forest Management (CFM), National Afforestation Programme (NAP) etc.
• Chettu – Neeru Programme : The State Government launched ‘neeru – chettu’ a programme aimed at conserving water and saving trees, in all districts in 2015.
• 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.
• Vanamahotsava : Forest Department celebrated 64^th Vanamahotsava in 2013 with view of “Two million tree plantation”.
• 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. Bio-diversity 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.
Write the importance of Tourism in Andhra Pradesh.
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 co-efficient 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 growth
Answer:
Economic growth refers to an increase in a country’s real output of goods and services. It related to developed countries.

Question 19.
Population Explosion .
Answer:
Population increase faster than food supply and its imbalance leads to over population i.e. birth rate will be high and death rate decreases very fast.

Question 20.
Death Rate
Answer:
Death Rate refers to number of deaths per thousand of population. In 1951 death rate was 27.4 and 7.0 in 2012.
West Bengal and Maharashtra have the lowest death rate. Orissa has highest death rate.

Question 21.
JananiSurakshaYojana
Answer:
This scheme has the dual objective of reducing maternal and infant mortality by promoting institutional deliveries. It is 100% centrally sponsored and integrates cash assistance with medical care.

Question 22.
Disguised unemployment
Answer:
A person whose marginal productivity zero or when more people are engaged in a job than actually required. We find his type of unemployment in agriculture in developing countries.

Question 23.
Cropping pattern
Answer:
Cropping pattern is defined as “The pattern of utilization of total farm land for producing different crops in country at a point of time”.

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

Question 25.
Microfinance
Answer:
It refers to the provision of financial services as a small scale do the rural and urban poor including self employed it is provided for working capital, investment and savings.

Question 26.
Disinvestment
Answer:
The sale of the public sector equity to the private sector is called disinvestment.

Question 27.
Service sector
Answer:
It is the third major sector of the economy. It is the fastest growing sector in the economy with largest share in GDE It supplies the supportive service to the primary arid secondary sectors. So, it is the provider of supportive services required for economic development. It is called tertiary sector.

Question 28.
Tourism
Answer:
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 29.
Liberalization
Answer:
It refers to relaxation of previous government restrictions usually in area of social and economic policies thus, when government liberalized trade it means it has removed the tariff, subsidies and other under employment restrictions on the flow of goods and services between the countries.

Question 30.
Environment
Answer:
The word “Environment” is derived from the French word “environer” which means to surround (or) encircle. Every thing which surrounds us may collectively be termed as the environment. We are surrounded by both living and non-living things. The living things are called as “biotic” part and non-living things as “abiotic” part of the environment.

Question 31.
Sustainable development
Answer:
Economic activities that do not delete or degrade natural resources.

Question 32.
Biodiversity
Answer:
The word biodiversity was coined by Walter Rosen in 1986. Living organisms are different in their size, Colour, shape and structure. The genes, environment and ecosystem decide this variety and complexity in the living organisms. This complex collection of innumerable organisms is known as biodiversity.

Question 33.
SwachhBbaratAbhiyan.
Answer:
Mahatma Gandhi communicated a quintessential message to the ration through his efforts, to educated people around him about cleanliness. He wished to see a ‘Clean India’. To work seriously towards this vision of Gandhiji, RM. Shri Narendra Modi – External website that opens Swachh Bharat in October 2,2014. This mission seeks to achieve the goal of clean India 150th birth anniversary of Bapu.

Question 34.
SGDP.
Answer:
The state GDP is defined as total values of finished goods and services produced in the state during a year. SGDP is the most important indicator for measuring the economic growth of state. It can be analysed in two different ways.

1. growth in the level of gross income
2. sectorial contribution.

Question 35.
SarvaSikshaAbhiyan
Answer:
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 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.
Mean deviation
Answer:
Mean deviation also called as average deviation. It is the average difference between the items in a series from the mean of median or mode. In this mean deviation we ignored ± signs.
M.D. = \(\frac{\sum \mathrm{f}|\mathrm{D}|}{\mathrm{N} \cdot}\)