AHSEC Class 12 Economics Solved Paper 2022
Full Marks: 80
Pass Marks: 24
Time: Three hours
The figures in the margin indicate full marks for the questions.
PART-A
1. Answer the following questions :
(i)Define involuntary unemployment.
Ans: Involuntary unemployment is a situation in which an individual is willing to work at the current wage rate, but is unable to find a job.
(ii) What is effective demand?
Ans: Effective demand is the amount of goods and services that consumers are willing and able to purchase at a given price level in an economy.
(iii) What do you understand by depreciation of capital?
Ans: Depreciation of capital refers to the decline in the value of an asset over time due to wear and tear, obsolescence, or other factors.
(iv) GNP= GDP_______.(Fill in the blank)
Ans: Net Factor income from abroad.
(v) What is foreign exchange market?
Ans: The foreign exchange market is a financial market where currencies are bought and sold. It is the largest and most liquid financial market in the world, with a daily trading volume of trillions of dollars.
(vi) Which of the following transactions are included in the current account of Balance of Payment?
(a) Import and Export of goods
(b) Import and Export of services
(c) Unilateral transfer
(d) All of the above
(Choose the correct option)
Ans: (d) All of the above
Explanation: The correct option is (d) All of the above. The current account of the balance of payment includes import and export of goods, import and export of services, and unilateral transfers.
2. Write the differences between GDP at market price and GDP at factor cost. 2
Ans: GDP at market price includes indirect taxes and excludes subsidies, giving the total value of goods and services in the market. On the other hand, GDP at factor cost excludes indirect taxes but includes subsidies, representing the income generated by factors of production.
OR
Write one similarity and one difference between intermediate goods and capital goods. 1+1=2
Ans: Similarity: One similarity between intermediate goods and capital goods is that they are both used in the production of other goods and services.
Difference: Intermediate goods are typically produced and used within the same year, while capital goods have a longer lifespan and are used over a period of several years. Intermediate goods are used in the production of other goods, while capital goods are used to produce intermediate or final goods.
3. What do you understand by 'Paradox of Thrift'? 2
Ans: The Paradox of Thrift, also known as the "Savings Paradox," is an economic concept that suggests that individual attempts to save more money during times of economic downturn may actually lead to a worsening of the overall economic situation. This is because when individuals save more, they reduce their spending, which can lead to lower demand for goods and services. This, in turn, can lead to a decrease in production and employment, leading to further economic decline. The Paradox of Thrift suggests that while saving may be beneficial for individuals in the short term, it can have negative consequences for the overall economy in the long run.
OR
What is aggregate supply? Explain.
Ans: Aggregate supply refers to the total amount of goods and services that firms in an economy are willing and able to sell at a given price level in a given time period. It represents the ability of an economy to produce goods and services and is influenced by factors such as the availability of resources, the state of technology, and the efficiency of firms
4. Write two differences between direct tax and indirect tax.
Ans: The two differences between direct tax and indirect tax :
Direct taxes are taxes that are imposed directly on individuals or businesses, while indirect taxes are taxes that are imposed on the sale or consumption of goods and services.
Direct taxes are typically paid directly to the government by the taxpayer, while indirect taxes are collected by the seller of the goods or services and are passed on to the government.
5. What are the components of high-powered money ?
Ans: High-powered money, also known as base money, is the total supply of money in an economy that is controlled directly by the central bank. The components of high-powered money include:
Currency: physical notes and coins in circulation.
Reserves: funds that banks hold at the central bank, which can be used to meet their reserve requirements or to make payments to other banks.
Central bank deposits: funds that non-bank financial institutions and the government hold at the central bank.
International reserves: foreign currencies and assets held by the central bank, which can be used to stabilize the exchange rate or to make international payments.
Central bank capital: the equity capital of the central bank, which can be used to absorb losses and maintain financial stability.
OR
Define Bank Rate and Cash Reserve Ratio. 1+1=2
Ans: Bank Rate : Bank rate is the interest rate at which the central bank lends funds to commercial banks. It is also known as the discount rate and is used by the central bank as a monetary policy tool to influence the supply of credit and demand for money in the economy.
Cash Reserve Ratio : Cash reserve ratio (CRR) is the percentage of deposits that commercial banks are required to hold in the form of cash or deposits with the central bank. It is used by the central bank as a tool to regulate the availability of credit in the economy and to manage inflation.
6. Write two differences between Balance of Payment and Balance of Trade. 2
Ans: 1.The balance of trade measures the difference between imports and exports of goods, while the balance of payments measures all financial transactions between a country and the rest of the world.
2. The balance of trade is reported on a shorter time frame (e.g. monthly or quarterly) while the balance of payments is reported on an annual basis.
7. Write in brief the ideas of fixed exchange rate and flexible exchange rate. 2
Ans:Fixed exchange rate is a type of exchange rate regime where a currency's value is fixed or pegged to the value of another currency, or to a basket of currencies. Under this system, the central bank of a country intervenes in the foreign exchange market to maintain the fixed exchange rate by buying or selling its own currency.
On the other hand, a flexible exchange rate is a type of exchange rate regime where the value of a currency is determined by the forces of supply and demand in the foreign exchange market. Under this system, the central bank does not intervene in the foreign exchange market to maintain the value of the currency, and the currency's value is allowed to fluctuate freely based on market forces.
8. What is an investment multiplier? If a new investment of Rs. 300 crore increases National Income by Rs. 1200 crore, calculate the value of investment multiplier. In this case, what will be the value of MPC ? 1+1+2=4
Ans: The investment multiplier is a measure of the magnitude of the impact that an increase in investment spending can have on the level of national income. It represents the amount by which an initial increase in investment spending will be multiplied as it creates a series of additional rounds of spending throughout the economy.
If a new investment of Rs. 300 crore increases national income by Rs. 1200 crore, the investment multiplier can be calculated as follows:
Investment multiplier = Change in national income / Change in investment spending
= Rs. 1200 crore / Rs. 300 crore
= 4
The value of the marginal propensity to consume (MPC) can be calculated as the change in consumption spending divided by the change in national income. In this case, if the increase in national income of Rs. 1200 crore resulted in an increase in consumption spending of Rs. 800 crore, the value of MPC would be:
MPC = Change in consumption spending / Change in national income
= Rs. 800 crore / Rs. 1200 crore
= 2/3 or approximately 0.67.
OR
Briefly discuss the components of aggregate demand. 2+2=4
Ans: Aggregate demand refers to the total amount of goods and services that households, businesses, and the government sector are willing and able to buy at a given price level in an economy. It is the sum of all demand for goods and services in an economy, and is a key determinant of economic activity and overall economic performance.
The components of aggregate demand are:
Consumption: This refers to the spending on goods and services by households, and is the largest component of aggregate demand.
Investment: This refers to the spending on capital goods by businesses, as well as the spending on residential and non-residential construction.
Government spending: This refers to the spending on goods and services by the government sector.
Net exports: This refers to the difference between the value of exports and the value of imports. Net exports can either add to or subtract from aggregate demand.
9. Write differences between the following concepts: (any two)
(i) Autonomous investment and Induced investment.
Ans:
(ii) Ex-ante consumption and Ex-post consumption.
Ans: Ex-ante consumption is the planned or desired consumption of goods and services in an economy during a given period of time. It is based on the expected income and expenditure of the consumers. Ex-post consumption is the actual or realized consumption of goods and services in an economy during a given period of time. It is based on the actual income and expenditure of the consumers. The difference between ex-ante and ex-post consumption reflects the deviation between the planned and the actual consumption in the economy.
(iii) Marginal propensity to consume and Marginal propensity to save.
Ans: The marginal propensity to consume (MPC) is the portion of each extra dollar of a household's income that is consumed or spent. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that is saved. MPC and MPS are related by the following equation:
MPC + MPS = 1
This means that the sum of the fractions of income spent and saved is equal to one, or the total income. MPC and MPS measure how consumers respond to changes in income and how they allocate their income between consumption and saving. MPC and MPS are influenced by factors such as interest rates, consumer perceptions, and income levels¹
(iv) Marginal propensity to consume and Average propensity to consume.
Ans: The marginal propensity to consume (MPC) is the portion of each extra dollar of a household's income that is consumed or spent. The average propensity to consume (APC) is the total consumption divided by the total income. MPC and APC measure how consumers respond to changes in income and how they allocate their income between consumption and saving. MPC and APC are related by the following equation:
MPC + MPS = 1
This means that the sum of the fractions of income spent and saved is equal to one, or the total income. MPC and APC are influenced by factors such as interest rates, consumer perceptions, and income levels.
10. Discuss four main functions of the Central Bank. 4
Ans: Four main functions of the Central Bank :-
Monetary policy: The central bank is responsible for implementing and managing the country's monetary policy, which includes setting interest rates and controlling the money supply in order to achieve economic goals such as low inflation and stable growth.
Financial stability: The central bank plays a critical role in maintaining financial stability by regulating and supervising the financial system, including banks and other financial institutions. This helps to reduce the risk of financial crises and ensure that the financial system is able to support economic growth.
Payment and settlement systems: The central bank is responsible for overseeing and maintaining the payment and settlement systems that enable the transfer of funds between banks and other financial institutions. This helps to ensure the smooth functioning of the financial system and the economy as a whole.
Currency issuance: The central bank is responsible for issuing and regulating the supply of the country's currency. This includes the design and production of paper money and coins, as well as the maintenance of sufficient reserves to meet the demand for currency.
OR
Explain how commercial banks create credit.
Ans: In India, commercial banks create credit through the process of fractional reserve banking. Under this system, commercial banks are required to hold a certain percentage of their deposits in reserve, while the rest can be loaned out to borrowers. When a bank makes a loan, it creates new money by crediting the borrower's account with the loan amount. This new money enters circulation when the borrower spends it, and the recipient of the funds can deposit it in a bank, which can then lend it out again, creating even more credit.
For example, suppose a commercial bank has deposits of 1000 rupees and is required to hold a reserve ratio of 10%. This means it must hold 100 rupees in reserve and can lend out 900 rupees. If the bank makes a loan of 900 rupees to a borrower, it creates 900 rupees of new money, which is credited to the borrower's account. If the borrower then spends the money, the recipient of the funds can deposit it in the bank, increasing the bank's deposits to 1900 rupees. The bank can then lend out a portion of these deposits, creating even more credit and expanding the money supply.
11. Discuss the components of the Government Budget. 4
Ans: Revenue budget: The revenue budget includes all the revenue that the government expects to receive from various sources, such as taxes, fees, and other non-tax revenue. It also includes the expenditure that the government incurs on various schemes and programs, as well as on the day-to-day running of the government.
Capital budget: The capital budget includes all expenditure on capital assets, such as infrastructure, machinery, and equipment. It also includes any revenue that the government expects to receive from the sale of capital assets.
Deficit: The deficit is the difference between the government's total expenditure and total revenue. If the expenditure exceeds the revenue, the government runs a deficit, which it finances by borrowing.
Debt: The debt is the total amount that the government owes to its creditors, including domestic and foreign lenders. The government's debt is a critical component of the budget and is closely monitored to ensure that it remains sustainable.
PART-B
13. (i) Define sustainable development.
Ans: Sustainable development can be defined as an approach to the economic development of a country without compromising with the quality of the environment for future generations.
(ii) During British rule, decay of Indian handicrafts was caused by -
(a) Discriminatory tariff policy of the British Government
(b) Competition from machine-made products
(c) Change in patterns of demand
(d) All of the above.
( Choose the correct option )
Ans: The correct option is (d) All of the above. The decay of Indian handicrafts was caused by a combination of factors, such as the discriminatory tariff policy of the British Government, the competition from machine-made products, and the change in patterns of demand.
(iii) In which year the NITI Aayog was formed ?
Ans: The NITI Aayog was formed on 1 January 2015, replacing the Planning Commission. It serves as the apex public policy think tank of the Government of India, and the nodal agency tasked with catalyzing economic development, and fostering cooperative federalism.
(iv) What is the difference between Labour Force' and 'Work Force' ?
Ans: Labour Force refers to the number of persons actually working or willing to work. However, workforce refers to the number of persons actually working. Thus, workforce does not account for those who are willing to work but do not find work. The difference between labour force and workforce is the total number of unemployed persons.
(v) Mention one similarity of the economic policies adopted by India and Pakistan.
Ans:- One similarity of the economic policies adopted by India and Pakistan is that they both followed a mixed economy, import-substitution policies, experienced the Green Revolution, and implemented Five Year Plans.
(vi) The 'Great Leap Forward' campaign in China focused on (Great Leap Forward)
(a) Privatisation
(b) Widespread industrialisation
(c) Development of services sector:
(d) Economic reform
(Choose the correct option)
Ans: The 'Great Leap Forward' campaign in China focused on (b) Widespread industrialisation. It was a radical social and economic policy launched by Mao Zedong in 1958, aiming to transform China from an agrarian society into a modern communist one. However, the campaign resulted in a massive famine and millions of deaths.
14. Mention two major industrial sector reforms in the Indian economy under the policy of liberalisation. 2
Ans: The two major industrial sector reforms in the Indian economy under the policy of liberalization are:
1. De-licensing of Industries: The government removed the requirement for industrial licensing in many sectors, allowing businesses to set up and expand without the need for extensive bureaucratic approvals.
2. Foreign Direct Investment (FDI) Liberalization: India increased the permissible limits of foreign investment in various sectors, attracting more foreign capital and technology into the country's industries.
OR
Write about two positive effects of LPG policies in the Indian economy.
Ans: The LPG (Liberalization, Privatization, Globalization) policies in the Indian economy have had several positive effects. Here are two key benefits:
1. Economic Growth: LPG policies stimulated economic growth by fostering competition and efficiency. Privatization of certain sectors led to improved productivity, as private entities often operate more efficiently than state-run enterprises. The influx of foreign investments, facilitated by globalization, contributed to economic expansion by bringing in capital, technology, and expertise.
2. Diversification and Innovation: Liberalization encouraged diversification in industries and allowed for the introduction of innovative practices. With reduced government intervention, businesses had the freedom to explore new markets and adopt cutting-edge technologies. This not only enhanced the competitiveness of Indian industries but also promoted innovation and adaptability to global market trends.
15. Write two merits of GST. 2
Ans:
GST eliminates the cascading effect of tax.
Higher threshold for registration.
Composition scheme for small businesses.
Simple and easy online procedure.
The number of compliances is lesser.
Special treatment for e-Commerce operators.
Improved efficiency of logistics.
Unorganised sector is regulated under GST.
Note: write any two of them.
OR
What is demonetisation? Mention one positive effect of demonetisation in the Indian economy. 2
Ans: Demonetisation is the process of withdrawing the legal tender status of a currency unit, making it invalid for transactions. It is usually done to curb inflation, black money, counterfeiting, and other economic problems.
One positive effect of demonetisation in the Indian economy is that it increased the use of digital payment methods, such as e-wallets, cards, and online banking. This reduced the dependence on cash and improved the transparency and efficiency of the financial system.
16. What is structural composition of an economy 2 As an 2021, which sector contributed highest to the GDP of India ? 1+1=2
Ans: The structural composition of an economy generally includes three main sectors:
1. Primary Sector (agriculture and related activities),
2. Secondary Sector (industry and manufacturing), and
3. Tertiary Sector (services).
As of 2021, the services or tertiary sector contributed the highest to the GDP of India.
OR
Write two characteristics of small-scale industries.
Ans:- 1. Localized Operations: Small-scale industries typically operate on a local or regional scale, serving a specific community or market. This allows for a more direct connection with the local economy and customer base.
2. Labor-Intensive Production: Small-scale industries often rely on a significant amount of manual labor in their production processes. This can contribute to employment generation within the local community and foster a sense of craftsmanship in the products or services they offer.
17. Write two differences between economic infrastructure and social infrastructure. 2
Ans- Economic infrastructure refers to the services that directly support the production and distribution of goods and services, such as transport, communication, power, etc. Social infrastructure refers to the services that indirectly enhance the quality of human resources, such as health, education, housing, etc.
- Economic infrastructure increases the stock of physical capital and the efficiency of economic resources, while social infrastructure increases the stock of human capital and the productivity of the workforce.
- Economic infrastructure has a direct impact on the economic growth and development of a country, while social infrastructure has a long-term impact on the social welfare and well-being of the society.
OR
Write about two problems faced by the power sector in India.
Ans- One of the problems faced by the power sector in India is the shortage of coal, which is the main fuel for thermal power generation. Coal production has not kept pace with the demand, leading to a gap between supply and consumption. This affects the availability and quality of power supply, as well as the financial viability of power plants.
- Another problem faced by the power sector in India is the high aggregate technical and commercial (AT&C) losses, which are the losses of electricity during transmission and distribution, as well as due to theft, pilferage, and inefficiency. The national average of AT&C losses is about 25%, which is much higher than the global average of 6-7%. This reduces the revenue and profitability of the distribution companies (discoms), and also affects the quality and reliability of power supply.
18. Write any two measures undertaken by the Government of India to improve agricultural marketing. 2
Ans- One of the measures undertaken by the Government of India to improve agricultural marketing is the establishment of regulated markets, which are organised and supervised by the state governments to ensure fair and transparent transactions between farmers and traders. Regulated markets provide facilities such as weighing, grading, storage, and information to the farmers, and also prevent malpractices such as underpayment, adulteration, and manipulation.
- Another measure undertaken by the Government of India to improve agricultural marketing is the implementation of the National Agriculture Market (e-NAM), which is an online platform that connects farmers and traders across the country. e-NAM enables farmers to sell their produce to the highest bidder, without any intermediaries, and also provides them with real-time price information, quality standards, and payment options.
OR
What do you understand by diversification of agriculture? 2
Ans- Diversification of agriculture means the shift from the cultivation of a single or a few crops to a variety of crops, or the adoption of other allied activities such as animal husbandry, fisheries, horticulture, etc. Diversification of agriculture helps in increasing the income and employment of the farmers, as well as reducing the risk and uncertainty associated with weather, pests, and market fluctuations. Diversification of agriculture also contributes to the food security, nutritional security, and environmental sustainability of the country.
19. What are the three main approaches undertaken by Government of India to alleviate poverty? 2
Ans- The three main approaches undertaken by Government of India to alleviate poverty are:
- Promoting economic growth, which creates more opportunities and resources for the poor to participate in and benefit from the development process. Economic growth also generates more revenue for the government to invest in social sectors such as education, health, and infrastructure.
- Implementing targeted anti-poverty programs, which provide direct assistance and support to the poor and vulnerable sections of the society. These programs include schemes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), etc.
- Strengthening the social safety net, which protects the poor from the adverse effects of shocks and crises, such as natural disasters, health emergencies, and economic downturns. The social safety net includes measures such as public distribution system (PDS), mid-day meal scheme, social security pensions, health insurance, etc.
OR
Write a short note on MGNREGA.
Ans- MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act, which was enacted in 2005 to provide legal guarantee of 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. MGNREGA aims to enhance the livelihood security, income, and empowerment of the rural poor, as well as to create durable assets and infrastructure in the rural areas. MGNREGA is implemented by the gram panchayats, with the participation and supervision of the local people. MGNREGA is one of the largest and most successful social welfare programs in the world.
20. Discuss the goals of planning in India. 4
Ans- The goals of planning in India are the objectives and targets that the government sets for the economic and social development of the country. The goals of planning in India are derived from the Directive Principles of State Policy, which are enshrined in the Constitution of India. The goals of planning in India can be broadly classified into four categories:
- Growth: This refers to the increase in the output and income of the country over time. Growth is essential for improving the living standards of the people, as well as for generating more resources for investment and public expenditure. Growth also enables the country to achieve self-reliance and reduce its dependence on foreign aid and loans.
- Equity: This refers to the fair and just distribution of income and wealth among the different sections and regions of the society. Equity is important for ensuring social justice and harmony, as well as for reducing poverty and inequality. Equity also promotes the participation and empowerment of the disadvantaged and marginalized groups, such as women, dalits, tribals, etc.
- Modernization: This refers to the adoption of new and advanced technologies, methods, and institutions in the production and distribution of goods and services. Modernization is necessary for enhancing the productivity and efficiency of the economy, as well as for coping with the challenges of globalization and competition. Modernization also involves the transformation of the social and cultural values and norms of the society, such as democracy, secularism, rationality, etc.
- Self-reliance: This refers to the ability of the country to meet its own needs and aspirations without depending on external sources. Self-reliance is crucial for maintaining the sovereignty and security of the country, as well as for pursuing its own vision and strategy of development. Self-reliance also implies the optimal utilization and conservation of the natural and human resources of the country.
OR
Briefly discuss two positive and two negative impacts of Green Revolution. 2+2=4
Ans
- The Green Revolution refers to the rapid increase in the production and productivity of food grains, especially wheat and rice, in India during the 1960s and 1970s. The Green Revolution was made possible by the introduction of high-yielding varieties (HYVs) of seeds, along with the use of chemical fertilizers, pesticides, irrigation, and mechanization. The Green Revolution had both positive and negative impacts on the Indian economy and society, such as:
- Positive impacts:
- The Green Revolution increased the food availability and food security of the country, and made India self-sufficient and surplus in food grains. This helped in reducing the dependence on food imports and foreign aid, and also in stabilizing the food prices and inflation.
- The Green Revolution also boosted the income and employment of the farmers, especially in the regions where the new technology was adopted. This led to the growth of the rural economy and the reduction of rural poverty. The Green Revolution also stimulated the development of the agro-based industries and the non-farm sector in the rural areas.
- Negative impacts:
- The Green Revolution created regional disparities and inequalities in the agricultural sector, as the new technology was mainly confined to the irrigated and fertile areas of the north-western and southern states. The eastern and central states, which were largely rainfed and drought-prone, lagged behind in the adoption of the new technology and remained backward and poor.
- The Green Revolution also caused environmental degradation and ecological imbalance, due to the excessive and indiscriminate use of chemical fertilizers, pesticides, and water. This resulted in the loss of soil fertility, soil erosion, waterlogging, salinity, groundwater depletion, and pollution. The Green Revolution also reduced the genetic diversity and biodiversity of the crops, and increased the vulnerability of the crops to pests and diseases.
21. Write a comparative note on the demographic indicators for India, China and Pakistan. 4
Ans- Demographic indicators are the statistical measures that reflect the size, structure, and characteristics of the population of a country. Some of the important demographic indicators are population size, population growth rate, population density, sex ratio, age structure, literacy rate, life expectancy, infant mortality rate, etc. A comparative note on the demographic indicators for India, China and Pakistan is given below:
- Population size: China has the largest population in the world, with 1.4 billion people, followed by India with 1.3 billion people, and Pakistan with 220 million people. India is expected to surpass China as the most populous country by 2027.
- Population growth rate: Pakistan has the highest population growth rate among the three countries, with 2.0% per annum, followed by India with 1.1% per annum, and China with 0.5% per annum. China's population growth rate has declined significantly due to its one-child policy, which was relaxed in 2016.
- Population density: India has the highest population density among the three countries, with 455 people per square kilometre, followed by Pakistan with 281 people per square kilometre, and China with 153
22. Write about different types of unemployment. 4
Ans:
1. Frictional Unemployment: Occurs when individuals are between jobs or entering the workforce for the first time. It's a natural part of the job-search process.
2. Structural Unemployment: Arises from a mismatch between the skills workers possess and the skills required by employers. Changes in technology or industry shifts can contribute to structural unemployment.
3. Cyclical Unemployment: Tied to economic cycles, it occurs during downturns when demand for goods and services decreases, leading to layoffs and job losses. Conversely, it decreases during economic upswings.
4. Seasonal Unemployment: Linked to specific seasons or times of the year when certain industries experience fluctuations in demand. Examples include agriculture or tourism, where demand varies seasonally.
23. Is economic growth, a cause of environmental degradation? Justify your answer. 4
Ans: Economic growth and environmental degradation often share a complex relationship. Rapid economic expansion, driven by industrialization and increased consumption, can exert substantial pressure on the environment. Industries generate pollution, deplete natural resources, and contribute to climate change. Deforestation, habitat loss, and overexploitation of ecosystems are common byproducts. However, it's essential to recognize that not all economic growth is inherently detrimental to the environment.
Strategies such as adopting sustainable practices, investing in green technologies, and promoting circular economies can mitigate environmental impacts. Transitioning to renewable energy sources, improving resource efficiency, and implementing stringent environmental regulations are crucial steps. Achieving a balance between economic growth and environmental sustainability is possible through thoughtful policies and responsible corporate practices. Ultimately, fostering a paradigm where economic development aligns with ecological preservation is vital for a sustainable future. It requires a collective commitment to innovation and conscious decision-making that prioritizes both economic prosperity and environmental well-being.
OR
(i) Write two causes of global warming. 2
(ii) Suggest two measures for attaining sustainable development in India. 2
Ans: (i) Two causes of global warming are the increased concentration of greenhouse gases, such as carbon dioxide and methane, resulting from human activities like burning fossil fuels and deforestation.
(ii) Two measures for attaining sustainable development in India could include promoting renewable energy sources like solar and wind power, and implementing policies to enhance water conservation and efficient resource management.
24. What is organic farming ? Discuss its merits and demerits. 1+5=6
Ans: Organic farming is an agricultural method that relies on natural processes and avoids the use of synthetic chemicals, genetically modified organisms (GMOs), and artificial additives. It emphasizes sustainable and environmentally friendly practices to enhance soil fertility and biodiversity.
Merits:
1. Environmental Sustainability: Promotes soil health and reduces water pollution.
2. Health Benefits: Organic produce reduces the risk of chemical residues.
3. Biodiversity Conservation: Avoids harmful effects on beneficial organisms.
4. Soil Fertility: Enhances soil fertility naturally.
5. Energy Efficiency: Involves lower energy inputs compared to conventional agriculture.
6. Market Demand: Consumer demand for organic products leads to premium prices.
Demerits:
1. Lower Yields: Organic farming may result in lower crop yields.
2. Land Requirement: More land may be needed for organic farming.
3. Costs and Prices: Transitioning can be expensive, and organic products often have higher prices.
4. Pest and Disease Outbreaks: More susceptibility to outbreaks without synthetic pesticides.
5. Transportation and Shelf Life: Organic produce may have a shorter shelf life and be more susceptible to spoilage during transportation.
6. Knowledge and Certification Challenges: Transitioning and certification can be complex and costly.
OR
What is Human Capital? Discuss the sources of human capital formation. 1+5=6
Ans: Human capital refers to the knowledge, skills, abilities, and other attributes embodied in individuals that contribute to their ability to perform labor and create economic value. It is an essential component of a nation's overall capital and plays a crucial role in economic development.
Sources of human capital formation include:
1. Education: Formal education systems, including schools, colleges, and universities, are primary sources of human capital. Education equips individuals with knowledge and skills necessary for various professions.
2. Training and Skill Development: Beyond formal education, vocational training programs and skill development initiatives contribute significantly to human capital. These programs enhance practical skills and adaptability in the workforce.
3. Healthcare: A healthy population is a productive one. Access to healthcare services contributes to the physical and mental well-being of individuals, positively impacting their ability to contribute to economic activities.
4. On-the-Job Experience: Work experience and on-the-job training are valuable sources of human capital. Practical exposure allows individuals to apply theoretical knowledge, develop problem-solving skills, and gain industry-specific expertise.
5. Information and Communication Technology (ICT): Proficiency in using modern technologies enhances productivity and employability. Access to and familiarity with ICT tools contribute to human capital formation in the digital age.
6. Research and Development: Investments in research and development activities foster innovation and contribute to the creation of new knowledge. This knowledge, when applied, enhances human capital by improving processes and products.
7. Social and Cultural Factors: Societal values, cultural practices, and social interactions also shape human capital. Factors such as work ethic, teamwork, and communication skills are influenced by social and cultural environments.
8. Government Policies: Policies related to education, healthcare, and employment can significantly impact human capital formation. Supportive policies, such as subsidies for education or job training programs, can encourage investment in human capital.
9. Migration: Movement of people across regions or countries can lead to the exchange of knowledge and skills, contributing to the formation of human capital on a global scale.
-00000-
Also Read: HS 2nd Year Economic Notes 2023-24
