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Karnataka 1st PUC Economics Question Bank Chapter 4 Poverty

1st PUC Economics Poverty TextBook Questions and Answers

Question 1.
Why caloric – based norm is not adequate to identify the poor?
Answer:
The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor. Poverty line is estimated by the monetary value (per capita expenditure) of the minimum calorie intake that was estimated at 2400 calories for a rural person and 2100 for a person in the urban area. But this calorie based norm is not adequate to identify the poor duo to following reasons:

1. This mechanism groups all the poor together and does not differentiate between the very poor and the other poor which makes it ’ difficult to identify who amongst them needs help the most.

2. Economists question, the basis of taking expenditure on food and a few select items as proxy for income.

3. This norm does not take into account the other factors associated with poverty such as accessibility to basic education, health care, drinking water, and sanitation.

4. This norm does not take social factors such as illiteracy, lack of access to resources, discrimination or lack of civil and political freedoms into consideration.

Question 2.
What is meant by the ‘Food for work programme’?
Answer:
‘Food for work’ programme was started in the 1970’s to raise the standard of living of poor. These poverty alleviation programme aimed to raise income and employment for the poor through the creation of incremental assets and by means of work generation.

Question 3.
Why are employment generation programmes important in poverty alleviation in india?
Answer:
In India, twin problems exist i.e., poverty and unemployment. Poverty alleviation has been one of the guiding principles of the planning process in India. Poverty can effectively be eradicated only when the poor start contributing to growth by their active involvement in the growth process.

This can only be achieved by launching various employment schemes. Following points discussed the importance of Employment Generation Programmes to eradicate poverty.

1. Nexus between Unemployment and Poverty:
There exists a deep nexus between unemployment and poverty. If employment opportunities are generated, then more people will be employed leading to rise in their income which in turn will reduce poverty.

2. Availability of Basic Facilities:
With the rise in employment opportunities, income increase and poor people are able to get access to education, health facilities, proper sanitation, etc.

3. Creation of Assets:
The Employment Generation Programmes aim at creation of assets like water harvesting, irrigation facilities, construction of roads, construction of dams, etc. All these assets help in the social and economic development of the rural areas and hence eradication of poverty.

4. Creation of skills
An essential element of employment generation programmes is the formation of human capital by imparting skills to the unskilled labourers through training. This alleviation programmes like Prime Minister’s Rozgar Yojana, Swarna Jayanti Shahari Rogzar Yojana, National Food for Work Programme, Annapurna came into existence.

Question 4.
How can creation of income earning assets address the problem of poverty?
Answer:
By creating income earning assets, we can generate employment opportunities through which poor can raise their income which ultimately helpful in improving standard of living. Thereby, it address the problem of poverty.

Question 5.
The three dimensional attack on poverty adopted by the government has not succeded in poverty alleviation in India. Comment.
Answer:
Poverty alleviation has always been accepted as one of the major objectives of planned development process in India but even after vast spending on poverty alleviation programmes, the government has not succeeded in poverty alleviation in India.

Despite various strategies to alleviate poverty, problems like hunger, malnorishment illiteracy, and lack of basic amenities are prevalent in India. None of the poverty alleviation strategies resulted in any radical change in the ownership of assets, process of production and improvement of basic amenities to the needy.

Due to unequal distribution of assets, the benefits from poverty alleviation programmes have not actually reached the poor. The amount of resources allocated for the poverty alleviation programmes is not sufficient when we take the magnitude of poverty into consideration.

The implementation of the poverty alleviation programmes is the responsibility of government and bank officials who are ill motivated, inadequately trained, corruption prone and vulnerable to pressure from local elites.

The resources are thus used inefficiently. Government policies have also failed to address the various issues related to poverty due to non – participation of local level institutions in programme implementation. It is evident that high grouwth alone is not sufficient to reduce poverty without the active participation of the people.

Further, it is necessary to identify poverty stricken areas and provide infrastructure such as schools, roads, power, telecom, IT services, training institution s, etc. Institutional weaknesses abound and implementation failures are the biggest reasons that these programmes not succeeded.

Question 6.
What programme has the Government adopted to help the elderly people and poor and destitute women?
Answer:
National Social Assistance Programme’ is one of the programme started by Government to help the elderly people and poor and destitute women this programme targets elderly people, widows and the poor and destitute women who are alone and have no one to take care of them. Under this programme, these targeted people are given pension to sustain their livelihood.

Question 7
Is there any relationship between unemployment and poverty? Explain.
Answer:
There exists a deep nexus between unemployment and poverty. Unemployment or underemployment and the casual and intermittent nature of work in both rural and urban areas drives unemployed people who do not have resources to make their ends meet into indebtedness and poverty.

If employment opportunities are generated, then more people will be employed leading to rise in their income which in turn will reduce poverty.

Due to unemployment, income of the people is reduced to a large extent and they are unable to get access to education, health facilities, proper sanitation, etc. This causes poor quality of living and hence poor human capital and skills which in turn lead to poverty making a vicious circle of poverty.

Question 8.
Suppose you are from a poor family and you wish to get help from the Government to set up a petty shop under which scheme will you apply for assistance and why?
Answer:
For setting up a petty shop, I would apply for financial assistance under the programme prime Minister’s Rozgar Yojana’ (PMRY). Under this programme, an unemployed educated person from low-income family in rural and urban areas can set up any kind of enterprise that can generate employment.

Question 9.
Illustrate the difference between rural and urban poverty. It is correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer?
Answer:

Rural Poverty	Urban Poverty
1. Open unemployment under & disguised unemployment are found simultaneously in rural areas	Open unemployment is generally found
2. It is difficult to differentiate between open employment & under employment in rural areas	One can differentiate between open and disguised unemployment
3. As the population increases dependent on agriculture increase. This leads to further rise in seasonal, open, under & distinguished unemployment in rural areas.	In urban areas the main reason for increase in open unemployment is increase in education, health & other facilities
4. No facility of education, employment, social welfare etc. that lead to poverty among the masses	Good facility of education, social welfare etc., that make the standard of living of urban people high
5. Rural people posses few assets	Urban people posses many assets
6. Malnutrition among rural people is high	Generally malnutrition is not found.

Question 10.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Answer:
Following measures have been taken by the Government to remove poverty under five year plan:
1. Integrated rural development programme:
With a view to remove poverty in rural areas and making provision for full employment under this programme, attempts are being made to provide more employment by developing agriculture, animal husbandry, fisheries, small scale, and cottage industries etc.,

2. Jawahar Rozsar Yojana:
It was launched in 1989. Its aim was to provide employment to at least one member of a IPUC Economics INDIAN ECONOMIC DEVELOPMENT rural poor family for 50 to 100 days in a year.

3. Jawahar Gram Samriddhi Yojana (JGSY):
It was launched on 1st April 1999. It has two main objectives:

1. Creation of durable productive community assets at the village level.
2. Generation of supplementary employment for the unemployed poor in rural areas.

4. Swarnaiavanthi Gram Swaroiear Yoiana (SGST):
It was started on 1^st April 1999. Its aims are:

• Focussed approach to poverty alleviation.
• Capitalising advantages of group lending
• Overcoming the problems.

5. Employment Assurance Scheme:
The programme is presently being implemented in all rural blocks.

• Creation of additional wage employment opportunities during the period of acute shortage for the rural poor living below the poverty line.
• Creation of durable community, social and economic assets for sustained economic development.

6. Pradhan Mantri Gramodava Yojana (PMGY):
It was introduced in 2000-2001 focussing on village development in five critical areas, health, primary education, drinking water, housing and rural roads with the objectives of improving the quality of life or people in the rural areas.

7. Sampoorna Grameen Roisar Yojana (SGRY):
The scheme aims at providing wage employment in rural areas as also food, security, creation durable, community, social and economic assets.

8. Grameena Roisar Guarantee Scheme:
It was launched in February 2005 to provide work for 100 days a year in rural areas.

1st PUC Economics Poverty Additional Questions and Answers

1st PUC Economics Poverty Very Short Answer Type Questions

Question 1.
Give the meaning of Poverty?
Answer:
Poverty is a situation in which, section of the people in a country are unable to get the minimum basic needs (like food, clothing, housing, education and health facilities)

Question 2.
What makes the poor physically weak?
Answer:

• Malnutrition
• 111 health & disability
• makes the poor physically weak.

Question 3.
Mention two kinds of Poverty?
Answer:
The two kinds of poverty are

1. Absolute poverty
2. Relative poverty

Question 4.
On what basis the poor are identified?
Answer:
The poor people are identified on the basis of their occupation and ownership of assets. In both rural and urban areas, the people who are unable to get even minimum income from their present occupation to lead their life are considered as poor.

Question 5.
Who are called churning poor?
Answer:
The churning poor are those who regularly move in and out of poverty, ex: small farmers, seasonal workers

Question 6.
Define poverty line as per Planning Commission?
Answer:
Poverty line as per planning commission is measured on the basis of minimum nutrition calories required for rural and urban population. It is estimated that a person is said to be poor if he is unable to consume 2400 calories per day in rural areas and 2100 calories per day in case of urban areas.

Question 7.
What do you mean by ‘Head Count Ratio’
Answer:
The number of poor estimated as the proportion of people below the poverty line is known as ‘Head Count Ratio’.

Question 8.
Name the National Programme which provides social security to aged and widows?
Answer:
National SocialAssistance Programme.

Question 9.
Write the meaning of Absolute Poverty?
Answer:
Absolute poverty is one of the kinds of poverty where consumption and expenditure of a person is not sufficient to maintain a minimum acceptable level of living, according to national standard, which is expressed in terms of food grains.

Question 10.
What is Relative Poverty?
Answer:
Relative Poverty refers to poverty which is measured in relation to levels of income of individuals. A section of people whose level of income is low when compared to other sections of people.

Question 11.
Who discussed the concept of poverty line first in India?
Answer:
‘Dadabhai Naroji’ was the first to discuss the concept of poverty line India.

Question 12.
Name the programme which guarantees minimum of 100 days of employment in rural areas?
Answer:
‘Mahatma Gandhi National Rural Employment Guarantee’ (MGNREGP).

Question 13.
Suppose you are from a poor family of a rural area and you wish to get help from the Government to set up a petty shop. Under which scheme will you apply for assistance.
Answer:
‘SwamajayanthiGramSwarojgarYojana’.

Question 14.
Mention the states which have 70% of India’s poor people?
Answer:

1. Orissa
2. Bihar
3. West Bengal
4. Uttar Pradesh
5. Madhya Pradesh.

Question 15.
What programmes has the Government adopted to help the elderly people and poor and destitute women?
Answer:
National social assistance programme help the elderly people and poor and destitute women. This programme in Karnataka named as ‘Sandhya Suraksha Yojana’.

Question 16.
Name the programme introduced by the Government to provide insurance to the head of the family of rural landless households?
Answer:
AamAadmi Bima Yojana.

Question 17.
Name the programme introduced by the Government of Karnataka to provide health insurance?
Answer:
‘Yashaswini Yojana’.

Question 18.
Name the programme introduced by the Government of Karnataka to provide financial support to female child of poor family.
Answer:
‘Bhagya LakshmiYojana’.

Question 19.
Expand‘VAMBAY’?
Answer:
‘Valmiki Ambedkar Awas Yojana’.

Question 20.
Name the states which are poorest in India?
Answer:

1. Bihar and
2. Orissa

Question 21.
Expand IAY?
Answer:
Indira Awas Yojana.

Question 22.
Expand PMRY?
Answer:
‘PradhanaManthriRojgar Yojana’.

Question 23.
Who are chronic poor?
Answer:
These are the person who always remains as poor for a long period of time, ex: casual workers, agricultural labourer’s, ragpickers, beggars etc.,

Question 24.
Who are called Transient Poor?
Answer:
The transient poor are those people who are rich most of the time but may sometimes have a pitch of bad luck.

Question 25.
Expand SGRY?
Answer:
‘SampoomaGrameena Rojgar Yojana’.

Question 26.
Expand SGSY?
Answer:
‘Swamajayanthi Gram Swarozgar Yojana’ (SGSY).

Question 27.
Expand SJSRY?
Answer:
‘Swarna jayanthi Shahari Rozgar Yojana’ (SJSRY).

1st PUC Economics Poverty Short Answer Type Questions

Question 1.
Write the important features of poorest households?
Answer:
The important features of poorest households:

• The poor people possess few assets and live in huts but the poorest of them do not even. have such huts also.
• They will not have capacity to eat a square meal a day.
• Starvation, hunger, lack of basic literacy and skills.

Question 2.
Name the categories of Poverty?
Answer:
The categories of poverty are :

• Chronic poor
• Transient poor
• Never poor or non-poor.

Question 3.
Name the factors which are to be considered to develop poverty line other than income and assets?
Answer:

• Accessibility to basic education
• Health care
• Drinking water and sanitation have to be considered to develop poverty line.

Question 4.
Do you think the growth oriented approach is successful in reducing poverty? why?
Answer:
The growth oriented approach has not succeeded in reducing poverty. This is mainly because of rapid growth rate of population and lack of proper implementation of land reforms.

Question 5.
How are poor people are identified?
Answer:
The poor people are identified on the basis of their occupation and ownership of assets. In both rural and urban areas, the people who are unable to get even minimum income from their present occupation to lead their life are considered as poor.

Question 6.
How do you calculate ‘Head Count Ratio’?
Answer:
The HeadCount Ratio is calculated with following formula.
HCL = Number of people living below the poverty line/Total population of the country.

Question 7.
What are the approaches to reduce poverty in India?
Answer:

• Growth oriented approach
• Income and employment generation approach
• Providing minimum basic needs to the people approach.

Question 8.
State any two self employment programmes?
Answer:
The major self employment programmes are :

• Swamajayanthi Gram Swarozgar Yojana (SGSY)
• Swamajayanthi ShahariRozgar Yojana (SJBRY)
• Pradhana Manthri Rozgar Yojana (PMRY).

Question 9.
Mention any two.national programmes to generate wage employment?
Answer:
The major national programmes to generate wage employment are as follows :

• National Food for Work Programme (NFWP)
• Sampooma Grameena Rozgar Yojana (SGRY)
• Mahathma Gandhi National Rural Employment Guarantee Programme (MGNREGP).

Question 10.
Mention the programmes aimed at improving food and nutritional status of poor?
Answer:
There are programmes introduced by the Government to improve the food and nutritional status of poor. They are as follows:

• Public distribution system (PDS)
• Integrated child development scheme (ICDS)
• Mid-day meals scheme.

Question 11.
Mention any four causes for poverty?
Answer:
The main causes for poverty are :

• Unemployment
• Population explosion
• Inflation
• Exploitation under British rule

Question 12.
State the programme introduced to provide basic infrastructure in rural areas?
Answer:
Programmes like:

• Pradhan Mantri Gram Sadak Yojana
• Basava Vasathi Yojana (Karnataka)
• Public Distribution System
• Integrated Child Development Scheme.

Question 13.
Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas?
Answer:
The difference between rural and urban poverty is the nature of poverty. In rural areas, poor people are those who are landless agricultural labourers, small and marginal farmers. While in urban areas, poor people are those who are unemployed, under employed or employed in low productivity occupation with low wages.
Poverty Ratio:

Estimates source:
planning commission estimates (Uniform Reference Period).

Question 14.
Who are poor according to Tendulkar Committee?
Answer:
According to Tendulkar Committee Report (2009-10), the poverty line is defined on the basis of per capita consumption expenditure of Rs.672.80 in rural areas and Rs.859.60 in urban areas.

1st PUC Economics Poverty Long Answer Type Questions

Question 1.
Briefly explain the causes of Poverty?
Answer:
The causes of Poverty:
1. Exploitation under British rule :
Britishers ruthlessessly exploited our country during their colonial rule. They destroyed our traditional cottage and small-scale industries to encourage their modem industries.

2. Economic Inequalities:
In India inequalities in the distribution of wealth and income are also responsible for poverty. A large section of the people are forced to remain under poverty due to concentration of wealth and income in the hands of few people.

3. Low resource base:
The most important factor which is responsible for poverty in India is the low resource base of poor both in rural and urban area. At present a large section of rural poor are having very little land or no land at all. The income from this smallholdings is not sufficient to meet their basic needs.

4. Unemployment:
Unemployment and underemployment are much more wide spread problem in India. The degree of unemployment among the poor is very high.

5. Rapid growth in population :
The single most important reason of poverty in India is rapid growth population. This is responsible for low level of per capita income and consumption.

6. Inflationary pressures:
Inflationary rise in the prices of food grains and other essential commodities further intensifies the situation of poverty.

7. Vicious circle of poverty:
At present India is facing the challenge of vicious circle of poverty. Here poverty is both the cause and the effect.

8. Social factors:
In India, social factors are also causing poverty. Illiteracy, ignorance, backwardness, inadequancy of social structure, narrow outlook affecting the quality of life of the people and their employability.

Question 2.
The three dimensional attack on poverty adopted by the Government has not succeeded in poverty alleviation in India. Comment.
Answer:
The three dimensional approach of economic growth, employment generation and alleviating poverty could not achieve the desired result. Although there has been a reduction in the percentage of absolute poor in some of the states still the poor people lack basic amenities, literacy and nourishment.
This is because of:

• Unequal distribution of land and other assets among rich and poor farmers.
• Improper implementation of poverty alleviation programmes by ill-motivated and inadequately trained bureaucrats further worsened the situation.
• Corruption along with inclination towards interest of elites led to an efficient and misallocation of scarce resources.

Question 3.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty?
Answer:
Being a resident of a village, I would suggest the following measures to tackle the problem of poverty:

• Identification of poor
• Generating employment opportunities for the identified poor
• Free access to education and health care facilities.
• Establishment of small scale industries.
• Re-distribution of income-earning assets.
• Encouraging poor for their active participation.
• Organising training camps and night classes for importing vocation training to unskilled labourers.
• Advancing financial and technical assistance to establish small enterprises.
• Upgradation of Agricultural practices to raise productivity.
• Enforcement of measures to check population growth.
• Development of infrastructure.
• Motivating the poor to acquire skills information and knowledge.

Question 4.
What are the various policies and programmes towards poverty alleviation of the Government?
Answer:
The second five year plan (1956-61) has pointed out that the benefits of economic development must accure more and more to the relatively less privileged classes of society.
The Government’s approach to poverty reduction is of three dimensions:
1. Growth oriented approach:
It is based on the expectation that the effects of economic growth that is rapid increase in the gross domestic product and per capita income of a nation would spread to all sections of society. Rapid industrial development and transformation of agriculture through Green Revolution in select regions would benefit underdeveloped regions and more backward sections of the community.

2. Food for Work:
In 1970, Food for work programme was started. The policymakers started thinking that incomes and employment for the poor could be increased through the creation of incremental assets and by means of work generation through specific poverty alleviation programmes. Under self-employment programmes, financial assistance is given to families or individuals.

3. Provision of minimum basic amenities :
Through public expenditure on social consumption needs such as education, health, water supply and sanitation, people’s standard of living could be improved. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and improvement in health and education.

For this purpose ‘Pradhana Manthi Gram Saraj Yojana, Pradhana Mantri Gramodaya, Yojana, Valmiki Ambedkar Awas Yojana and National Social Assistance Programme’ were started.

Question 5.
Write some measures to remove poverty in India?
Answer:
Following steps should be taken to remove poverty in India.
1. Creation of employment opportunities:
There should be greater encouragement to small scale industries in rural areas, poultry farming, dairy farming and piggeries should be developed.

2. Population Control:
Population growth is a hindrance in our coming the problem of population. It should be checked. Various family planning methods should be adopted by the people. The people should be educated so that they understand the charm of a small sized family.

3. Economic development:
There should be improvement in agricultural and industries. Their production should be increased.

4. Provision of minimum needs :
The Government should provide water, housing, sanitation, other facilities. The public distribution system should be regulated properly. So that the poor people may get essential commodities at cheaper rates.

5. Removal of economic inequalities:
The Government should encourage small industries and agriculture. It should give incentive to industries in rural areas. The taxation policy should be progressive. The money collected by the Government should be spent on the welfare of poor people.

Question 6.
How is the poverty line determined?
Answer:
In simple words the poverty line is defined as the per capita expenditure at which the average calorie in take was 2400 calories for a person in rural areas and 2100 calories for urban areas. Most of the studies use data collected by national sample survey organisation on various aspects including consumption expenditure and region.

1. In 1999-2000 the poverty line was defined for rural areas as consumption worth Rs.328 per month and for urban areas it was Rs.454.

2. In 1973-74 more than 321 million people were below the poverty line. In 1999-2000 this has come down to about 260 million.

3. In 1973,74, about 55 percent of the total population were below the poverty line. In 1999-2000 it has fallen to 26 percent. In rural areas, about 75 percent of the total poor are below the poverty line.

Question 7.
Briefly explain the three dimensional attack on poverty adopted by the Government?
Answer:
The Government’s approach to poverty reduction is of three dimensions:
1. The first one is the growth-oriented approach. It is based on the expectation that the effects of economic growth – rapid increase in gross domestic product and per capita income would spread to all sections of society and will trickle down to poorer sections.

This was the major focus of planning in the 1950’s and early 1960s. It was felt that rapid industrial development and transformation of agriculture through green revolution in select (regions would benefit the underdeveloped regions).

2. The second approach has been initiated from the third five-year plan (1961 -1966) that suggest that incomes and employment for the poor could be raised through the creation of incremental assets and by means of work generation. This could be achieved through specific poverty alleviation programme. The example based on this approach are :

a. Food for work programme:
Minimum food was ensured to workers and their families instead of money under this programme.

b. Rural Employment Generation Programme:
It aims at creating self employment opportunities in rural areas and small towns.

c. Prime Minister’s Rozgar Yojana:
The educated unemployed from low income families in rural and urban areas can get financial help to setup any kind of enterprise that generate employment under this programme.

d. Swama Jayanthi Shasri Rozgar Yojana:
It mainly aims at creating employment opportunity both of self-employment and wage employment in urban areas.

e. National Food for work programme and Sampooma Grameen Rojgar Yojana:
These programmes aim at generating wage employment for the poor unskilled people living in rural areas.

f. In August 2005, the parliament has passed a new Act to provide guaranteed wage employment to every household whose adult volunteer to do unskilled manual work for a minimum of 100 days in a year.

3. The third approach to tackle poverty is to provide minimum basic amenities to the people. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and bring about improvement in health and education.

Three major programmes that aim at improving the food and nutritional status of the poor are public distribution system, integrated child development scheme and mid-day meal scheme.

Question 8.
Critically examine the growth oriented approach to poverty reduction?
Answer:
Growth oriented approach to poverty reduction:
It is the first Government’s approach to poverty reduction. This approach was based on the expectation that the effects of economic growth would spread to all sections of society and trickle down to the poor section also. This approach was the major focus of planning in the 1950’s and early 1960’s.

It was felt that rapid industrial development and transformation of agriculture through green revolution would benefit the under developed regions and the more backward sections of the community. But this approach was failure. The benefits of economic growth has not trickled down to the poor.

The green revolution exacerbated the disparities regionally and between large and small farmers. There was unwillingness and inability to redistributed lands.

Students can Download Economics Chapter 1 Introduction Questions and Answers, Notes Pdf, 1st PUC Economics Question Bank with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Question Bank Chapter 1 Statistics for Economics Introduction

1st PUC Economics Introduction TextBook Questions and Answers

Question 1.
Mark the following statements as true of false.
Answer:

1. Statistics can only deal with quantitative data. False
2. Statistics solves economic problems. True
3. Statistics is of no use to economists without data. True

Question 2.
Make a list of activities that constitute the ordinary business of life. Are these economic activities?
Economics activities:
Answer:

1. Working in a field.
2. Working in a factory or office
3. Shopkeeper
4. Treatment to a patient by a doctor
5. Teachers teaching in school

Non-Economic activities:

1. Teacher teaching his own son
2. Nurse serving her old mother
3. Cooking of food by the housewife in her home.

Question 3.
The Government and policy makers use statistical development to formulate suitable policies of economic development. Illustrate with two examples.
Answer:
The statistical data is important for Government and policy makers to formulate suitable policies of economic development. It not only helps in analysing and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies accordingly. It is clear from examples.

1. It can be ascertained by using statistical techniques whether the policy of family planning is effective in checking the problem of rapidly growing population.

2. In preparing annual Government budgets, previous data of Government expenditures and Government resources are taken into consideration for estimating the allocation of funds among various projects.

Question 4.
‘You have unlimited wants and limited resources to satisfy them’. Explain by giving two examples?
Answer:
Every individual have unlimited wants but the resources for satisfying the wants are limited. Scarcity is the root of all economic problems. If there has been no scarcity there would have been no economic problem. This can be understood by examples.

1. Achild’s pocket money is limited so he/she has to choose only those things that they want the most. You can’t purchase almost all the things you want.

2. A land available should be put in use either in agricultural or industrial. We can’t use same land for both activities.

Question 5.
How will you choose the wants to be satisfied?
Answer:
Any individual fulfills his/her wants according to his/her needs satisfaction and priority attached to different wants. Moreover, the choice of want also depends on the need of the time and availability of means (money) to purchase that want.

Question 6.
What are your reasons for studying Economics?
Answer:
The reasons for studying economics are:

• To study the theory of consumption
• To study the theory of production
• To study the theory of distribution
• The study of economics also helps us to understand and analyse the root cause of basic problems faced by an economy.

Question 7.
Statistical methods are no substitute for common sense?
Answer:
This is true that statistical methods are no substitute for common sense. Statistical data should not be believed blindly as it can be misinterpreted or misused. The statistical data may involve personal bias or may undergo manipulations, also, statistical data and methods fail to reveal the errors committed by an investigator while surveying and collecting data. This can be understood by a story.

It is said that a family of four persons (husband, wife and two children) once set out to cross a river. So he calculated the average height of his families members since the average height of his family members was greater than the average depth of the river. He thought they could cross safely.

Consequently some members of the family (children) drowned while crossing the river. Thus commonsence must be used while applying statistical methods.

1st PUC Economics Introduction Additional Questions and Answers

1st PUC Economics Introduction Very Short Answer Type Questions

Question 1.
What is Economics?
Answer:
The term Economics is derived from two Greek words

so totally it means ‘The art of house hold management’.

Question 2.
What is statistics in Singular Sense?
Answer:
In Singular Sense ‘Statistics is a science which concerns itself with the collection, presentation, analysis, and interpretation of numerical data.

Question 3.
What is Data?
Answer:
The term ‘data’ refers to ‘numerical information about social or economic activities’.

Question 4.
Who is called as the father of Economics?
Answer:
‘Adam Smith’ is called as the ‘father of Economics’.

Question 5.
Name the book written by Adam Smith?
Answer:
‘Wealth of Nations’ is the book written by Adam Smith, which was published in 1776.

Question 6.
What do you mean by scarcity in Economics?
Answer:
Scarcity means lack of something or anything which is in shortage of fulfill human wants.

Question 7.
What do you mean by ‘Ends’ and ‘Means’?
Answer:
According to Lionel Robbins ‘Ends’ refer to human wants and ‘Means’ refer to resources.

Question 8.
What do you mean by Production?
Answer:
The term production refers to the process of converting raw materials into finished goods. It also include raising of crops, forestry, animal husbandry, poultry farming etc.,

Question 9.
What do you mean by Consumption?
Answer:
The act of using goods and services of satisfy our wants is called consumption.

Question 10.
Wh at do you mean by Distribution?
Answer:
In Economics, distribution refers to the rewards paid to the four factors of production (Land, Labour, Capital and Organisation). It includes rent, wages, interest, and profit.

Question 11.
What is Exchange?
Answer:
The term ‘Exchange’ refers to purchase and sale of goods and services. It involves transfer of products from the seller to the buyer for price.

Question 12.
Who is the father of Statistics?
Answer:
Sir Ronald AFisher is called as father of modem statistics.

Question 13.
Mention the two types of data?
Answer:
The two types of data are:

1. Quantitative data
2. Qualitative data

Question 14.
Why does the problem of choice arise?
Answer:
The problem of choice arises due to the following reasons:

1. Human wants are unlimited
2. To satisfy unlimited wants, the resources are limited
3. The resources can be put to alternative uses, though they are limited in supply.

OR

The problem of choice arises due to the unlimited wants and limited resources.

Question 15.
Who is a Consumer?
Answer:
A consumer is one who consumes goods & services.

Question 16.
Who is a Producer?
Answer:
A producer is one who produces and sells goods and services for the generation of income.

Question 17.
Give two examples of Quantitative Data?
Answer:

1. Price of goods
2. Income of individuals

Question 18.
Give two examples of Qualitative Data?
Answer:

1. Intelligence of individuals
2. Tastes and preferences of individuals.

1st PUC Economics Introduction Short Answer Type Questions

Question 1.
Name the four factors of Production?
Answer:
The factors of production are:

1. Land
2. Labour
3. Capital
4. Organisation

Question 2.
Write any two forms of scarcity as you see in your daily life?
Answer:
The two forms of scarcity as we see in our daily life are :

1. Scarcity of water
2. Scarcity of petrol
3. Scarcity of agricultural resources etc.,
4. Scarcity of power.

Question 3.
What is Exchange? What does it Study?
Answer:
The term ‘Exchange’ refers to purchase and sale of goods and services for something in return. It studies – market, prices, finance, and trade, etc.,

Question 4.
What is meant by statistical methods? What are the important statistical methods?
Answer:
Statistical methods refers to general principles and techniques which are commonly used in the collection, analysis, and interpretation of data.
Following are the important statistical methods:

1. Collection of data
2. Organisation of data
3. Presentation of data
4. Analysis of data
5. Interpretation of data.

Question 5.
Write the important functions of Statistics?
Answer:
The important functions of Statistics are:

1. Presentation of data or facts
2. Simplification of facts
3. Comparison of related facts
4. It helps in correlating the data
5. Statistics helps in forecasting the future behaviour

Question 6.
Briefly explain the three distinct component of Economics?
Answer:
Three distinct components of economics are consumption, production, and distribution,

1. Consumption – Using of goods for satisfying human needs is called consumption.
2. Production – Adding or increasing the utility of a commodities is known as production
3. Distribution – It means the distribution of the national income or the total income arising from what has been produced in the country called (GDP).

1st PUC Economics Introduction Long Answer Type Questions

Question 1.
Distinguish between ‘Quantitative’ and ‘Qualitative’ data and give some examples of both?
Answer:
Quantitative data:
Quantitative data is referred to as data measured with help of numerical facts or terms For example

1. Daily temperature
2. Fleight
3. Weights of individuals
4. Price
5. Income etc.,

are quantitative variables. Their values can be expressed numerically.

Qualitative data :
When data is measured with the help of attributes or character it is Qualitative data. Qualitative data is the data which can not be measured with help of numerical values.

Example:

1. Attitudes of people to a political system.
2. Intelligence of individuals
3. Music and art
4. Beauty of individual cannot measured numerically.

Question 2.
What are your reasons for studying statistics?
Answer:
Statistics is widely used in modem times. Now-a-days statistics is useful to bankers, workers, labourers, workers, trade associations, insurance companies, auditor, social workers, chamber of commerce, politics etc.,

Uses of Statistics:
1. Useful to Politicians:
The politicians and their supporters are immensely interested in knowing their prospects of
winning election. It helps them to know the percentage of vote may candidate will receive in the election can be worked out.

2. Useful to insurance companies:
Statistics is also very useful to insurance companies. Insurance companies premium rates are determined with help of mortality tables which are based on mortality experience statistics.

3. Useful to economics :
Statistics serves as a raw materials to the economists in making certain economic laws.

4. Useful of finance minister:
The finance minister is responsible for preparing the annual budget of the country. For preparation of better annual budget plan there will be high necessity of statistics.

5. Bankers:
Statistics is very much useful for bankers and banking industry. Every bank has a statistical department. This department helps the bank to make its own policy.

6. Useful to Business man:
It is necessary for an efficient businessman to have the full knowledge of the factors which influence his business decisions. He must know the probable demand in future and we must calculate the cost of production. All this can be done with the help of statistics and statistical methods.

Question 3.
Give the limitations of Statistics?
Answer:
The following are the limitations of statistics:
1. It does not study the qualitative aspect of a problem.

2. It does not study the individuals:
It is study of a mass data and deals with aggregates of facts.

3. Statistical laws are true only on an average:
They are not universally applicable like the laws of chemistry, physics, and mathematics. They are true on an average because the results are affected by a large number of causes.

4. Statistics can be manipulated:
The results obtained can be manipulated according to one’s own interest and such manipulated results can mislead the community.

5. Statistical results lack mathematical accuracy:
The results drawn from statistical analysis are normally approximates. As the statistical analysis is based on observation of mass data, number of inaccuracies may be present and it is difficult to rectify them.

Question 4.
Describe the function of Statistics?
Answer:
The functions of statistics are:

1. Presentation of facts in figures:
Statistics presents the various facts and figures, in such a manner so that various complicated facts become easy, brief and concrete and they may be understood easily.

2. Establishment of relationship:
With the help of statistical methods (correction) relationship between two or more facts may be established.

3. Comparison:
Two or more effects may be compared with the help of statistics. Various averages, rates, percentages, and co-efficients are used for this purpose.

4. Interpretation of problems:
With the help of statistical devices, interpretation of various problems may be done.

5. Formation of laws and principles of other sciences:
Statistics helps to other social and natural sciences in forming the laws and with its help the various rules and principles of those sciences may be tested.

6. Helpful in deciding the policy:
With the help of statistics various policy decisions may be taken logically and successfully.

Question 5.
Name the stages of statistical study and statistical tools for presentation of data.

OR

Describe the main stages of statistics and their related tools.
Answer:
Stages of statistics:
Following are main stages of statistics.

1. Collection data:
It refers to gather some statistical facts by different methods.

2. Organisation of data:
In tills stage the organised data are presented in the form of graphs, diagrams, tables etc.,

3. Presentation of data:
In this stage the organised data are presented in the form of graphs, diagrams, tables etc.,

4. Analysis of data:
In the fourth stage we analyse the data in terms of averages of percentages.

5. Interpretation of data:
This is the last stage of statistics. In this stage, we interpret the data to find some conclusion.

Stage	statistical study	statistical tools
Stage-1	Collection of data techniques	census or sample
Stage-2	Organisation of data	Array of data and tally bar
Stage-3	Presentation of data	Tables, graphs & diagrams
Stage-4	Analysis of data	Percentage, averages
Stage-5	Interpretation of data	Magnitude of percentage, average, degree of relationship between variables.