EXERCISE

Very short answer questions 

Answer in one sentence-

Q1. Economic growth
Answer: Economic growth is a quantitative concept related to the increase in a country’s output, particularly the growth in per capita income.

Q2. Economic development
Answer: Economic development is a broader, qualitative concept that includes economic growth along with positive changes in socially significant sectors like education and health.

Q3. Human development
Answer: Human development focuses on enrichment of people’s lives and expansion of their choices, not just on output.

Q4. Economic planning
Answer: Economic planning is a tool to achieve specific objectives within a defined time frame.

Q5. Democratic planning
Answer: Democratic planning is a system where people participate in plan-making decisions.

Q6. Liberalisation
Answer: Economic liberalization reduces state control over the economy.

Q7. Privatisation
Answer: Privatisation opens public sector units to private sector participation.

Q8. Globalisation
Answer: Globalization integrates a nation’s economy with the world economy.

Short answer type questions

Q1. Mention two important points of difference between economic growth and economic development.
Answer: Two important points of difference between economic growth and economic development are :

1. Nature of the concept: Economic growth is narrow and quantitative; economic development is broader and qualitative.
2. Occurrence: Economic growth can occur without development, but development requires growth.

Q2. What are the three indices of human development?
Answer: The three indices of human development are :

1. Life expectancy – average years a child is expected to live.
2. Literacy – adult literacy and gross enrolment ratio.
3. Standard of living – access to drinking water and sanitation.

Q3. What is meant by extension of collective choice?
Answer: It means people have more freedom and opportunities to make choices in economic, social, cultural, and political aspects, enriching their lives.

Q4. Mention four important objectives of India’s Five Year Plans.
Answer: The four important objectives of India’s Five Year Plans are : 

1. Increase economic growth rate.
2. Promote modern technology.
3. Achieve self-reliance.
4. Ensure social justice.

Q5. Who are the members of NITI Aayog?
Answer: The members of NITI Aayog are : 

1. Prime Minister (Chairman)
2. Vice-Chairman
3. Chief Ministers of states
4. Lieutenant Governors of UTs
5. Four Central Ministers
6. Chief Executive Officer
7. Experts from different fields

Q6. Explain one of the main points of difference between the first and second phase of planning in India.
Answer: The first phase (1951-1991) emphasized public sector dominance; the second phase (1991-present) focuses on liberalisation, privatisation, and globalisation.

Q7. Briefly explain the three main causes of the introduction of economic reform measures in India.
Answer:

1. Fiscal Deficit – Public expenditure exceeded revenue.
2. High Inflation – Affected people with fixed incomes.
3. Balance of Payments Crisis – Decline in foreign funds, trade deficit.

Q8. Mention three benefits of economic reforms in India.
Answer: Three benefits of economic reforms in India are : 

1. Higher economic growth.
2. Increased foreign exchange reserves.
3. Improved financial inclusion.

Q9. Briefly explain two problems of economic reforms in India.
Answer: The two problems of economic reforms in India are: 

1. Increased competition without increased purchasing power.
2. Erosion of social values due to consumerism.

Q10. Mention five important objectives of Assam’s Twelfth Five Year Plan.
Answer: The five important objectives of Assam’s Twelfth Five Year Plan are :

1. Raise economic growth rate to 10%.
2. Use technology to solve floods and erosion.
3. Achieve self-sufficiency in power generation.
4. Increase investment in health and education.
5. Focus on skill development and promote small industries.