AP Inter 2nd Year Economics Question Paper May 2018

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

AP Inter 2nd Year Economics Question Paper May 2018

Time: 3 Hours
Maximum Marks: 100


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 fines.
  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 :

Question 1.
Explain the features 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 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 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. 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) 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 May 2018

Quiestion 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 non-economic.
AP Inter 2nd Year Economics Question Paper May 2018 1
1) Underdevelopment: The root cause of poverty is the under-development of Indian economy. Dancjekar 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 levehof standard of living. There is a wide disparity in the consumption levels of the top rich and the bottom poor.

6) Inflation : Continuous rice 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 denton 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 May 2018

Question 3.
What are the causes for rural indebtedness ? Suggest the remedial measures to reduce it.
A majority of rural households are in indebtedness. Among the rural households, in- debtedness is highly prevalent in cultivators household, especially in the case of marginal and small farmers. Generally, these households are borrowing from non-institutional sources at a high rate of interest which results in rural indebtedness. The following are the main causes for increasing rural indebtedness in India.

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

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

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

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

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

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

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

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

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

Remedial measures :

  • Expansion of Institutional credit : In order to reduce the dependence of the rural people on money lenders, the Government should provide timely and adequate credit through commercial banks, RRBs, co-operative credit societies etc. Consequently, the rural people get relief of their debts.
  • Regulation of Money lenders : The Government should enact legislations to control money lenders. These legislations should consist of licensing and registration of money lenders, maintenance of accounts in prescribed form, fixing maximum rate of interest, furnishing receipts to debtors after payment etc.
  • Debt Moratorium : Central Government and State Govern-ments are resorting the policy of debt moratorium for redemption of debt of the marginal farmers, small farmers and landless laborers as it was introduced during the period of emergency.
  • Educating the farmers : All the farmers in rural areas should be educated. Then only they can understand various legislations pertaining to ancestral debt and fixed rate of interest.
  • Supply of Inputs : The institutional credit sources should sanction loans to the rural poor not in the form of cash but in the form of inputs in order to avoid unproductive expenditure. Such mode of sanction definitely enhances the repaying capacity of the debtor and minimizes the problem of indebtedness.
  • Others : In addition to the above the Government has to frame various schemes to eradicate poverty and employment which in turn increase the income and the repaying capacity of rural poor. Coverage of women farmers under micro-finance methodology must be increased.

Question 4.
Evaluate the 1991 new industrial policy resolution of India.
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 imports of capital goods like machinery, without any conditions if the foreign exchange needed for the imports is met from 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 converti bility 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 monoploies 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.

AP Inter 2nd Year Economics Question Paper May 2018

Question 5.
Explain the causes of regional imbalances in India.
Regional imbalances stand in the way of a nation’s integrity, economic growth and development. Before taking the measures to rectify regional imbalances, it is imperative to know the causes of regional imbalances.

They are :
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, whereas 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.

Section – B (8 × 5 = 40)

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

Question 6.
Causes of high birth rate in India.
Population increases because of high birth rate, low death rate and immigration. The birth rate has not declined significantly in India during the last five decades because of a number of economic and social factors.

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.

AP Inter 2nd Year Economics Question Paper May 2018

Question 7.
Write any five different types of unemployment.
It is the situation that the people willing and able to work at market wage rate are unable to get employment.

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 jobseekers 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 under-development classification includes those workers that are highly skilled but working in low paying jobs.

4) Frictional Unemployment: It is another type of unemployment 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.

Question 8.
Reasons for poor performance of Land Reforms.
Land reforms were implemented with good objectives, aiming at the development and empowerment of rural poor. However, in practice they were internally rejected. The following reasons can be mentioned for the poor performance of land reforms.

  1. Lack of political will.
  2. The rural poor are unorganised.
  3. Absence of updation of land records.
  4. Legal hurdles in the way of implementation.
  5. Weak administrative set up.
  6. Very little surplus lands were talan into possession.
  7. Provision of exemptions were used for evading the ceiling on land holdings.
  8. Laws were challenged on number of other grounds like rates of compensation, calculation of standard holdings etc.
  9. Reforms were given a low priority in development strategy.

AP Inter 2nd Year Economics Question Paper May 2018

Question 9.
Any five defects in the agricultural marketing in India.
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 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.
Explain 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 manu¬facturing 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.
Explain the importance of Railways.
Railways provide the principal mode of transportation for freight and passengers. They are the great integrating force for the past 150 years and helping in acclerating the development of industry and agriculture railways made a very modest beginning in 1853. With a route length of 34 kms. Indian railways have grown into a vast network of 7,183 stations spread over a route length of 53,332 kilometers. They have a flact of 8025 locomotives, 44090 passenger service vehicles, 5990 other loading vehicles and 2,07,176 wagons.

The Indian railways is the world’s third largest rail network under a single management. Better resource management rational pricing policy have led to a significant improvement in the performance of the railways. In India the development of agriculture and industrial sectors has generated higher level of demand for rail transport. Coal, pig iron, iron ore, cement, food grains, fertilizers sugar, salt, steel, petroleum products and other essential commodities are transported by railways.

AP Inter 2nd Year Economics Question Paper May 2018

Question 12.
Objectives of GATT.

  1. It had no legal status.
  2. It was not created by the governments and legislatures.
  3. It was not an agency of the United Nations Organization.
  4. It has a set of rules and producers relating to multilateral agreements of selective nature. There were separate agreements on separate issue which were not binding on members.
  5. The GATT disputes settlements system was dilatory and not binding on the parties to the disputes.
  6. The GATT was a forum where the member countries meet once in a decade to discuss and solve world trade problems.
  7. The GATT rules applied to trade in goods.
  8. It has a small secretariat managed by a Director General.

Question 13.
Objectives of WTO.
a) It aims at raising standard of living, ensuring full employment and large and steady growth, expanding the production and trade in goods and services among the global countries.

b) To allow for the optimal use of the world’s resources in accordance with the objectives of sustainable development. This also considers environmental protection with economic growth.

c) To ensure the developing and least developed countries secure a share in the growth in international trade.

d) To convince the member countries for reciprocal and mutually advantageous arrangements through reduction of tariffs and other trade harries.

e) To develop an integrated, more viable and durable multilateral trading system.

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 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.
Environmental protection activities in the State.
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.

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 Vana- mahotsava 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 sanctua¬ries. The Seshachalam Biosphere Reserve has been notified and made functional.

AP Inter 2nd Year Economics Question Paper May 2018

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.R is also showing a downward trend in the recent years. The literacy rate is 67.35 in 2011 for A.P. 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 a statistical device which help to analyzing 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 predit 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.
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.
The proportion of urban population in India in 2001 was 27.8 percent as against 17.3 percent in 1951. If the economic development is going on people are migrate backward areas to urban areas. So the population density will be increase in urban areas, facing number of problems like high cost living sanitation, drainage, housing problems and high male – female ratio.

Question 20.
Tertiary Sector.
Tertiary sector contribution to GDP : The share of the tertiary sector (trade, transport, financing, insurance, real-estate, banking, social and personal services and business services) indicated a sharp improvement from 29.6 percent in 1950 – 51 to about 59.9% in 2013 – 14. There was a significant increase in share of trade, transport & communications from 11.3% in 1950 – 51 to 26.4% in 2013- 14. This shows a good sign which is essential for an under developed country like India.

Question 21.
Sarva Shiksha 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.

AP Inter 2nd Year Economics Question Paper May 2018

Question 22.
Disguised unemployment.
Indian agriculture is characterized by the existence of consi¬derable 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.

Question 23.
Co-operative farming.
Co-operative farming indicates that all farmers of a village from themselves voluntarily a society. After forming the society entire land holdings of the farmers will be pooled into one unit. Later they will handover their land, cattle, implements etc., to the society.’ The co-operative society will cultivate all these holdings as one farm.

Question 24.
Green Revolution.
The Government of India has arinounced the New Agricultural Strategy in 1965 to ensure rapid agricultural progress. Prof. Norman Borlog is the father of green revolution. The new strategy of agriculture which resulted in revolutionary progress in the farm sector during the period 1960 – 70 is termed as Green Revolution. Willian S. Gand is the first economist who used the term green revolution.

Achieving high produce and productivity in farm sector by implementing hybrid seeds, fertilizers, pesticides, machines etc., and also by inducing farmers is called green revolution.

Question 25.
Rythu Bazar.
The Andhra Pradesh Government has introduced the concept of Rythu Bazars as 26th January 1999. In these markets the farmers will sell their products directly to the consumers without the interference of middlemen.

Question 26.
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 27.
Transport means conveyance of people or property from one place to another. These services provide a link between production distribution and consumption activities. Road ways, railways, airways, waterways are the important means of transport.

AP Inter 2nd Year Economics Question Paper May 2018

Question 28.
Life Insurance Corporation of India was set up in 1956. LIC has its central office at Mumbai with 7 Zonal officers, 101 divisional offices and 2,048 branch offices. It mobilise savings of the public to invest in the industrial securities.

Question 29.
Define plan.
Plan may be defined as an outline or broad statement of schemes or programmes designed of evolved to relaise certain pre-determined economic objectives.
The efforts taken to reach the already set gains during a particular time period.

Question 30.
Water Pollution.
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, slit etc.

Question 31.
Ozone layer.
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 32.
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 33.
What is “Noise” ?
A deep, loud and unpleasant sound which is undesirable and unwanted.

Question 34.
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 within the geographical boundaries of the State during a year.

The three sectors in A.R economy are as follows.

  1. Primary sector : Agriculture, Animal husbandary, Forests etc.
  2. Industrial sector : Industries, Gas, Irrigation, Construction.
  3. Tertiary sector : Trade, Hotels, Transport, Communication, General Administration Social Services.

AP Inter 2nd Year Economics Question Paper May 2018

Question 35.
Project Tiger.
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 districts of Kurnool, Prakasam, Guntur which is the home to over 50 tigers and able to support even more.

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 Number.
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.

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