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Reviewing AP Inter 2nd Year Economics Study Material Chapter 8 Agriculture and Rural Development Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 8th Lesson Agriculture and Rural Development Questions and Answers

Very Short Answer Questions

Question 1.
Define a major irrigation project.
Answer:
A major irrigation project is an irrigation project with a Cultivable Command Area (CCA) of more than 10,000 hectares. It involves large-scale infrastructure like dams and reservoirs to store and distribute water.
Ex: Srisailam, Pulichintala, Polavaram.

Question 2.
What do you understand by Jeevamrut in farming?
Answer:
Jeevamrut is a microbial culture used in farming to enhance soil fertility and increase microbial activity in the soil. It is a key component of Zero Budget Natural Farming (ZBNF) and promotes sustainable, chemical-free agriculture.

Question 3.
What are the TOP crops?
Answer:
TOP crops refer to Tomato, Onion, and Potato. These are important crops that often face price fluctuations and are given special focus for production and marketing.

Question 4.
What is meant by the term ‘Rainbow Revolution’ in agriculture?
Answer:
The Rainbow Revolution is a collective term describing the growth of agriculture through diversification into various allied activities . It represents different agricultural revolutions like Green, White, Blue, Yellow, etc., ensuring overall development of agriculture.

Question 5.
What is the aim of Prime Minister Dhan-Dhaanya Krishi Yojana?
Answer:
The aim of the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) is to enhance agricultural productivity, promote crop diversification, and encourage sustainable farming practices along with improving irrigation and post-harvest storage.

Question 6.
Explain the Modified Interest Subvention Scheme (MISS)?
Answer:
The Modified Interest Subvention Scheme (MISS) is a government initiative that provides short-term crop loans to farmers through Kisan Credit Cards (KCC) at subsidized interest rates. It aims to ensure affordable farm credit and encourage timely repayment of loans.

Short Answer Questions

Question 1.
Write about the types of land reforms implemented in Indian agriculture.
Answer:
Types of Land Reforms in Indian Agriculture:
1) Abolition of Intermediaries: This reform focused on the abolition of the Zamindari system, where Madras state passed the first legislation in 1917, and Uttar Pradesh implemented it in 1952, resulting in tenants becoming owners as land ownership was transferred directly to cultivators, making it a fully successful reform.

2) Tenancy Reforms: These reforms were implemented to protect tenant farmers with uncertain tenure and non-fixed rents by providing ownership rights to long-term tenants, security of tenure against eviction, and regulation of rent.

3) Land Ceiling: Land ceiling refers to a legal maximum limit on land ownership, where surplus land is acquired and distributed to marginal farmers, landless labourers, and SCs/STs, with limits such as 18 acres (wetland two crops), 27 acres (wetland one crop), and 54 acres (dry land), while plantations (tea, coffee, rubber) b and religious lands are exempted.

4) Consolidation of Holdings: This reform aimed to consolidate fragmented land holdings into viable units through legislation and cooperative farming, encouraging farmers to pool land and resources to overcome small and scattered holdings.

Question 2.
Write the impact of the Green Revolution on Indian economy.
Answer:
Impact of Green Revolution on Indian Economy:
The Green Revolution brought substantial quantitative and qualitative changes in the Indian economy by helping the country achieve self-sufficiency in food grain production.

• It led to a massive increase in food grain production, rising from 82 million tonnes in 1965 to 329.7 million tonnes by FY23.
• There was a rise in commercial crops and adoption of new farm techniques, improving overall agricultural output.
• It created enhanced employment opportunities due to multiple cropping and labour- intensive practices. „
• It strengthened forward and backward linkages with industries by supplying raw materials and using Inputs like fertilizers and machinery.
• It improved rural living standards, increasing farmers’ income and MPCE.
• The electronic National Agriculture Market (e-NAM) is a pan-India electronic trading

Question 3.
What is meant by regulated markets? State it’s objectives.
Answer:
Regulated markets, also known as Agricultural Produce Market Committees (APMCs), are wholesale markets established under state-level legislation to ensure fair trade between farmers and buyers. These markets are governed by State Agricultural Marketing Boards, where buying and selling are supervised by Market Committees.

Objectives of Regulated Markets:

1. To eliminate malpractices carried out by middlemen and traders.
2. To ensure fair pricing and better market access so farmers receive proper value for their produce.
3. To maintain transparency in transactions between farmers and buyers.
4. To ensure quality control and grading of agricultural products.
5. To provide prompt payment to farmers after sale.
6. To ensure standardized weights and measures.
7. To provide infrastructure facilities like storage and transport.
8. To reduce marketing costs for farmers.

Question 4.
Write a note on “e-NAM”.
Answer:
e-NAM:

1. The electronic National Agriculture Market (e-NAM) is a pan-India electronic trading portal launched by the Government of India in 2016 to create a unified national market for agricultural commodities.
2. It is a virtual platform that integrates existing physical wholesale mandis across States and UTs to facilitate online trading of agricultural goods.
3. The primary objective of e-NAM is to enable farmers to secure better prices through a transparent price discovery mechanism. It is implemented by the Small Farmers Agribusiness Consortium (SFAC) under the Ministry of Agriculture and Farmers’ Welfare.
4. As of June 30,2025,1,522 mandis have been onboarded, over 1.79 crore farmers are registered, and the total trade value has reached14,39,941 crore
5. e-NAM promotes efficient and transparent agricultural marketing while reducing the role of exploitative middlemen.

Question 5.
Comment on any two measures taken for rural development in India.
Answer:
Measures for Rural Development in India:

1) Pradhan Mantri Gram Sadak Yojana (PMGSY):

• Launched in 2000, this flagship scheme aims to provide all-weather road connectivity to previously unconnected rural habitations.
• Improved road connectivity has significantly enhanced access to markets, healthcare, and education, thereby reducing isolation of rural areas.
• It has also boosted rural employment and encouraged non-farm activities, contributing to overall economic growth.
• The programme has connected over 1.7 lakh habitations and constructed about 17.5 lakh kilometers of roads, with recent phases focusing on green and climate-resilient infrastructure.

2) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):

• Launched in 2006, this scheme provides a legal guarantee of 100 days of wage employment per year to rural households willing to do unskilled manual work.
• It promotes social inclusion by ensuring employment opportunities for SCs, STs, and women, thereby reducing poverty and income inequality.
• In 2023-24, about 1.23 crore households were provided employment generating 16.34 crore person-days of work.
• In addition to income support, the scheme has led to the creation of durable rural assets (about 9.06 crore), improving infrastructure and long-term productivity in rural areas.

Question 6.
Write any four institutional sources of agriculture credit in India.
Answer:
Institutional Sources of Agricultural Credit in India:

1) Cooperative Credit Societies: This is a three-tier system consisting of Primary Agriculture Cooperative Credit Societies (PACs) at the village level, District Central Cooperative Banks (DCBs) at the district level, and State Cooperative Banks (SCBs) at the state level. These institutions mainly provide short-term and medium-term farm credit for inputs like seeds, fertilizers, and irrigation, and are especially useful for small and marginal farmers due to their local presence.

2) Commercial Banks: Commercial banks provide short, medium, and long-term agricultural credit for various purposes such as crop production, purchase of machinery, and land development. They are mandated by the RBI to allocate 18% of their Priority Sector Lending to agriculture, and they dominate long-term credit with about 59% share, making them a major source of institutional finance.

3) Regional Rural Banks (RRBs): Established in 1975, RRBs provide credit at low interest rates in rural and semi-urban areas. Their main objective is to support small and marginal farmers, agricultural labourers, and rural artisans, thereby promoting financial inclusion and rural development. They bridge the gap between commercial banks and rural borrowers.

4) National Bank for Agriculture and Rural Development (NABARD): Established in 1982, NABARD is the apex institution for agricultural and rural credit. It does not lend directly to farmers but provides refinance and financial support to state governments, cooperative banks, and RRBs. It also promotes Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs), strengthening the rural credit system and encouraging sustainable agriculture.

Long Answer Questions

Question 1.
Explain the various agriculture-allied activities in Indian economy.
Answer:
Agriculture Allied Activities in Indian Economy:
Agriculture includes several allied activities beyond crop cultivation, such as horticulture, animal husbandry, dairying, and fisheries. These activities support food security, employment, income generation, exports, and reduce dependence on seasonal farming.

1) Horticulture and Floriculture

• Horticulture involves the production of fruits, vegetables, flowers, and spices. It is a high-value sector that provides higher income per unit of land. India is the second-largest producer of fruits and vegetables.
• Floriculture, known as a “sunrise industry,” enjoys 100% export-oriented status and offers high profit potential. It generates employment in cultivation, processing, and marketing.

2) Fisheries and Aquaculture

• Fisheries include inland and marine fish production, while aquaculture involves the breeding and rearing of aquatic organisms.
• India is the second-largest fish and aquaculture producer, contributing about 8% of global fish production.
• The sector provides livelihood to over 2.8 crore fishers, ensures nutritional security, and earned ₹ 63,969 crore through exports in 2022-23.
• Schemes like PMMSY improve infrastructure, productivity, and fishers’ welfare.

3) Dairy Farming:

• Dairy farming deals with the production of milk and milk products. India is the largest producer and consumer of milk, contributing about 24-25% of global production.
• It is a major source of rural livelihood and provides regular income to farmers.
• Dairy also improves nutrition, with per capita milk availability around 450 grams per day in 2022-23.

4) Other Allied Activities

• Animal Husbandry: Rearing livestock for milk, meat, and other products.
• Forestry: Provides timber, fuel, and ecological benefits.
• Poultry, Beekeeping, and Sericulture: Require low investment, generate employment, and support exports.

5) Rainbow Revolution

• The Rainbow Revolution represents the growth of diversified agricultural sectors such as White Revolution (milk), Blue Revolution (fish), Golden Revolution (horticulture and honey), and Silver Revolution (eggs).
• It has increased farmers’ income, reduced poverty, strengthened food and nutritional security,
  and promoted sustainable agricultural development.

Question 2.
Explain about the Minimum Support Prices in Agriculture.
Answer:
Minimum Support Prices (MSPs) in Agriculture:
Minimum Support Prices (MSPs) are guaranteed prices announced by the Government of India for selected crops to protect farmers from price fluctuations and ensure a minimum income. MSP provides price assurance and encourages agricultural production.

1) Recommending Authority

• The Commission for Agricultural Costs and Prices (CACP) recommends MSPs. It was established as the Agricultural Prices Commission in 1965 and renamed in 1985.
• The CACP studies production costs, market conditions, and other economic factors before recommending MSPs, which are announced before the sowing season.

2) Calculation Methodology
MSP is determined by estimating production costs and adding a profit margin. The main cost concepts are:

• A2 Cost: Includes direct expenses such as seeds, fertilizers, pesticides, hired labour, fuel, and irrigation.
• A2 + FL Cost: Includes A2 plus the value of unpaid family labour. MSP is generally fixed at least 50% above this cost.
• C2 Cost: Includes A2 + FL along with rental value of owned land and interest on fixed capital. The Swaminathan Committee recommended MSP at least 50% above C2.
  This system helps farmers recover costs and earn a reasonable return.

3) Factors Considered in Determination

• Market trends and demand, to balance supply and avoid surplus or shortage.
• Inter-crop price parity, to maintain a proper price relationship between different crops.
• Inflation and overall economic conditions, ensuring MSP keeps pace with rising costs.
• Terms of Trade (ToT) between agriculture and other sectors.
• Recommendations of expert committees and policy bodies.

4) Implementation and Related Schemes

• Price Support Scheme (PSS): Procurement of pulses, oilseeds, and cotton when market prices fall below MSP.
• Market Intervention Scheme (MIS): Support for perishable crops like onions and tomatoes during sharp price declines.
• PM-AASHA: Ensures better MSP realization through procurement and price support measures.

Question 3.
What are the causes for low productivity in agriculture in India? Suggest some measures to improve it.
Answer:
Agricultural productivity refers to the average output or yield per hectare of land. Though productivity has improved since Independence, it remains low compared to global standards due to several structural, institutional, and technological constraints.

I) Causes for Low Productivity in Agriculture

I) Small and Fragmented Landholdings

• The average landholding size is only about 0.74 hectares (2021 -22), and nearly 90% of farmers are small or marginal farmers.
• Small and scattered holdings make the use of modern machinery and scientific farming uneconomical.

2) Monsoon Dependency:

• About 50-60% of agricultural land depends on rainfall.
• Irregular monsoons, droughts, and floods cause unstable production, making agriculture a “gamble on monsoon.”

3) Traditional Farming Techniques

• Many farmers still use traditional methods and low levels of mechanization.
• This leads to inefficient use of resources and low productivity.

4) Land Tenure and Historical Neglect

• During the British period, agriculture, especially irrigation, received little attention.
• Unequal land distribution and insecure tenancy discouraged investment in land improvement.

5) Subsistence Farming and Disguised Unemployment

• Most farmers produce mainly for self-consumption rather than the market.
• Excess labour in agriculture results in disguised unemployment and low labour productivity.

II) Measures to Improve Agricultural Productivity

• Green Revolution: Introduction of HYV seeds, fertilizers, pesticides, and mechanization significantly increased agricultural production, particularly of wheat and rice.
• Expansion of Irrigation: Development of irrigation projects and schemes like PM Krishi Sinchayee Yojana reduce rainfall dependence and improve water-use efficiency.
• Land Reforms: Abolition of intermediaries, tenancy reforms, and consolidation of holdings promote efficient land use and adoption of modern practices.
• Institutional Credit: Credit through Commercial Banks, RRBs, Cooperatives, and Kisan Credit Cards (KCC) enables farmers to invest in better inputs and technology.
• Subsidies and Extension Services: Subsidized seeds, fertilizers, electricity, and farmer training programs help reduce costs and encourage scientific farming.
• Recent Mission-Mode Initiatives:
  • PM Dhan-Dhaanya Krishi Yojana (PMDDKY): Improves productivity in underperforming districts.
  • PM-RAFTAAR: Promotes agri-entrepreneurship and infrastructure development.
  • PKVY and Zero Budget Natural Farming (ZBNF): Encourage sustainable, low-cost farming and improve long-term soil health.

Multiple Choice Questions

Question 1.
According to the Economic survey 2024-25, the per capita net availability of food grains in 2022-23 (in grams):
1) 468.11
2) 520,56
3) 511.7
4) 568.8
Answer:
4) 568.8

Question 2.
Who is considered as the father of Green Revolution?
1) M.S. Swaminathan
2) Prof.Norman Borlog
3) W.S.Gaud
4) B.F.John & J. Cowrie
Answer:
2) Prof.Norman Borlog

Question 3.
What are the two Umbrella Schemes approved by the Union Cabinet on 03-10-2024 for rationalisation of all centrally sponsored schemes operating under the Ministry of Agriculture and farmers?
1) Krishonnati Yojana (KY) and PM RKVYRAFTAR
2) PM-KISSAN and PM RKVY RAFTAR
3) PM-KUSUM and PM RKVY RAFTAR
4) Krishonnati Yojana (KY) and PM – KISSAN
Answer:
1) Krishonnati Yojana (KY) and PM RKVYRAFTAR

Question 4.
In the Union budget 2025-26, the enhanced loan limit of the Kisan Credit Card (KCC) is:
1) 3 lakhs
2) 4 lakhs
3) 5 lakhs
4) 6 lakhs
Answer:
3) 5 lakhs

Question 5.
Which of the following commissions recommends Minimum Support Prices (MSPs):
1) The Commission for Agriculture Costs (CAC)
2) The Commission for Agriculture Costs and Prices (CACP)
3) The Commission for Agriculture Prices (CAP)
4) The Commission for Agriculture Marketing (CAM)
Answer:
2) The Commission for Agriculture Costs and Prices (CACP)

Question 6.
Which of the following is identified as a sunrise industry with 100 export-oriented status?
1) Sericulture
2) Floriculture
4) Pisciculture
4) Dairy
Answer:
2) Floriculture

Question 7.
Which of the following statements is correct?
1) India is the world’s largest producer of milk.
2) India is the largest consumer of milk.
3) India is the largest producer of dairy products.
4) All three are true
Answer:
4) All three are true

Question 8.
The scheme that was launched to provide electricity for domestic consumption as well as for agriculture is
1) PM-KUSUM
2) PGGCY
3) PM-JAY
4) SAUBHAGYA
Answer:
4) SAUBHAGYA

Question 9.
Feature of a mission mode programme:
1) Fixed timeframe
2) Target driven with a specific problem or challenge
3) Measurable outcome
4) All three of the above
Answer:
4) All three of the above

Question 10.
RAFTAAR scheme aims to:
1) Make agriculture more remunerative
2) Increase productivity of food crops
3) Intervene to support farmers when prices of food crops fall
4) Protect agriculture from disasters.
Answer:
1) Make agriculture more remunerative

Fill in the Blanks

Question 1.
______________ committee recommended for the establishment of the NABARD.
Answer:
Sivaranman Committee

Question 2.
PM-KUSUM scheme provides ______________ security to farmers.
Answer:
energy

Question 3.
______________ is an apex bank for providing credit to agriculture sector.
Answer:
NABARD

Question 4.
______________scheme was launched to finance marketing and post harvest infrastructure.
Answer:
Agri Infrastructure fund

Question 5.
______________ Revolution relates to the production of oil seeds.
Answer:
Yellow

One Word Answers

Question 1.
What do you call the surplus of produce available to the farmers after meeting all their requirements?
Answer:
Marketable surplus

Question 2.
Which agency implements eNAM?
Answer:
Small Farmers Agribusiness Consortium (SFAC)

Question 3.
Which scheme has been started by the Government of India for promoting organic farming?
Answer:
Paramparagat Krishi Vikas Yojana (PKVY)

Question 4.
What do you call the practice under natural farming, to provide natural treatment to seeds?
Answer:
Beejamrut

Question 5.
What is the motto of Pradhan Mantri Krishi Sinchayee Yojana’?
Answer:
Har Khet Ko Pani

Reviewing AP Inter 2nd Year Economics Study Material Chapter 7 Planning and Economic Reforms Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 7th Lesson Planning and Economic Reforms Questions and Answers

Very Short Answer Questions

Question 1.
Distinguish between Liberlization and Privatization.
Answer:

Question 2.
Gadgil formula.
Answer:

1. The Gadgil Formula (1969), named after D.R. Gadgil, was used by the Planning Commission to allocate central plan assistance to States during Five-Year Plans.
2. It distributes funds based on criteria such as population, per capita income, performance, tax effort, and special problems of states.

Question 3.
Explain about ‘FEMA’.
Answer:

1. FEMA (Foreign Exchange Management Act), 1999 replaced the earlier FERA (1973) and came into force in June 2000.
2. Its main objective is to facilitate external trade and payments and to promote the orderly development and management of the foreign exchange market in India.

Question 4.
National Investment Fund.
Answer:

1. The National Investment Fund (NIF) was established in 2005 to receive proceeds from disinvestment of public sector enterprises.
2. Its funds are used to support government developmental schemes and programmes.

Question 5.
What is Mahalanobis model?
Answer:

1. The Mahalanobis Model, developed by P.C. Mahalanobis, was used in India’s Second Five-Year Plan (1956-61) and focused on rapid industrialization.
2. It gave priority to heavy and capital goods industries to promote long-term economic growth.

Question 6.
Mention any two WTO agreements signed by India.
Answer:
Two WTO agreements signed by India are:

1. Agreement on Agriculture (AoA)
2. Trade Related Intellectual Property Rights (TRIPs)

Short Answer Questions

Question 1.
Discuss any four failures of planning in India.
Answer:
1) Regional Disparities: The plans failed to achieve balanced regional development. Developed states like Goa, Sikkim, and Telangana have higher incomes, whereas BIMARU states (Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh) remain backward.

2) Unemployment: Despite the implementation of various employment schemes over the years, the plans have not been able to resolve the problem of unemployment.

As per the data, the unemployment rate stood at 5.6% (May 2025), with a slightly higher rate among women (5.8%) compared to men (5.6%), reflecting continued employment challenges.

3) Persistence of Poverty: Poverty remains a major challenge despite years of economic planning. According to the data, while the poverty rate was 16.22% in 2011 -12 under an earlier measure, using a new poverty line of $ 3.00 per day shows that about 75.2 million people still live below the poverty line, indicating the persistence of poverty.

4) Increasing Inequalities: Following the introduction of economic reforms like liberalization and privatization, inequalities in wealth and income have increased. The data shows that the top 10% of the population holds more than 50% of the total income, while the bottom 50% shares less than 15%, highlighting a significant gap between rich and poor.

Question 2.
Write a brief note on WTO.
Answer:
1) The World Trade Organization (WTO) is an inter-governmental organization that regulates international trade among member countries. It was established on January 1,1995, replacing GATT, under the Marrakesh Agreement signed in 1994. Its headquarters are in Geneva, Switzerland, and India is a founder member.

2. The WTO performs important functions such as facilitating trade, providing a platform for negotiations, settling trade disputes, monitoring trade policies, and offering technical assistance to member nations.

3. Member countries sign various agreements like Agreement on Agriculture (AoA), TRIPs, GATS, and TRIMs, which regulate different aspects of global trade.

4. The impact on India includes benefits such as increased exports, economic growth, and higher inflow of FDI and Fll, along with challenges like pressure on subsidies, issues related to patents, and increased competition for small-scale industries.

Question 3.
Briefly explain the major initiatives of NITI Aayog for Indian economic development.
Answer:
NITI Aayog has launched several key initiatives to transform India into a dynamic, knowledge based, and inclusive society through a decentralized and collaborative approach.

1) Sustainable Development Goals (SDGs): NITI Aayog aligned India’s development agenda with the United Nations’ SDGs and developed a National Indicator Framework to track progress on these goals.

2) Atal Innovation Mission (AIM): This initiative promotes innovation and entrepreneurship among youth through Atal Tinkering Labs, Incubation Centers, and Community Innovation Centers, strengthening the startup ecosystem.

3) Aspirational Districts Programme: Launched in January 2018, it focuses on the rapid development of 112 backward districts in areas like agriculture, infrastructure, education, health, and nutrition.

4) Strategic Planning Framework: NITI Aayog replaced Five-Year Plans with a flexible, data- driven framework including a Three-Year Action Agenda, Seven-Year Strategy, and Fifteen- Year Vision.

5) Digital Transformation: It promotes digital governance through initiatives like Digital India, Digital Payments, and Digital Health to improve efficiency and service delivery.

Question 4.
State the differences between planning commission and NITI Aayog.
Answer:
Differences between planning commission and NITI Aayog:

Question 5.
Discuss any four measures towards Globalization.
Answer:
Globalization refers to the process of integrating India’s domestic economy with the world economy by relaxing restrictions on international trade.

Four measures towards Globalization:
1) Devaluation of the Rupee: To boost exports and reduce trade deficit, the rupee was devalued in July 1991 in two stages (9% and 11%), making Indian goods cheaper in the global market.

2) Convertibility of Rupee in Current Account: refers to the facility that allows foreign exchange earnings to be freely converted into Indian currency for trade-related transactions. This system was introduced in stages from 1992, where initially 60% was converted at the market rate and 40% at the official rate, and it achieved full convertibility in 1993.

3) Reduction of Import Tariffs: The government reduced custom duties significantly (from 150% in 1991 to 10% by 2007) to promote international trade.

4) Removal of Quantitative Restrictions on Imports: Physical limits on imports were removed, with 2,144 goods freed from restrictions between 1997 and 2001, encouraging free trade.

Question 6.
Explain the difference between stabilization policies and structural adjustment measures under economic reforms.
Answer:
Difference between stabilization policies and structural adjustment:

Long Answer Questions

Question 1.
Explain major achievements of economic planning in India.
Answer:
Economic planning in India (1951-2017) through the Twelve Five-Year Plans brought structural transformation, modernization, and economic growth. India emerged as one of the world’s largest economies due to planned development.

1) Increased Economic Growth: Economic planning helped India overcome the slow “Hindu Rate of Growth” of about 3.5% during the early decades. Through investment, industrialization, and infrastructure development, the growth rate increased to around 7% by the Twelfth Plan. Several plans also achieved or exceeded their growth targets.

2) Agricultural Production and Food Security: Planning transformed agriculture through land reforms, irrigation expansion, and the Green Revolution. Foodgrain production increased from 50.8 million tonnes in 1950-51 to 275 million tonnes in 2016-17, making India largely self-sufficient in food. The Rainbow Revolution also boosted milk, fish, and egg production.

3) Industrial Progress: The Second Five-Year Plan laid the foundation for industrialization by promoting basic and capital goods industries. Coal and crude oil production increased significantly, while electricity generation rose from 5 bkw in 1951 to 1236 bkw in 2016-17, strengthening the industrial base.

4) Development of Infrastructure: Infrastructure expanded considerably. Railway networks, roads, and ports grew rapidly, improving connectivity and trade. Tele-density crossed 90% due to the telecom revolution. Bank nationalization and modern payment systems such as UPI enhanced financial inclusion and efficiency.

5) Social Services and Quality of Life: Planning improved education, health, and living standards. Literacy increased from 18.3% to about 74%, health indicators improved, and poverty declined from around 50% in the 1950s to 21.9% by 2011 -12.

6) Science, Technology, and Trade Development: India diversified exports from primary products to manufactured goods and IT services. The share of trade in GDP increased significantly. Major achievements were also made in space research, nuclear energy, biotechnology, and satellite technology, enhancing India’s global competitiveness.

Conclusion: Economic planning played a crucial role in promoting growth, food security, industrialization, infrastructure, social welfare, and technological advancement, laying the foundation for modern India’s development.

Question 2.
State the causes of regional imbalances and explain the measures taken during the plan period to achieve balanced regional development in India.
Answer:
Balanced regional development is a strategy that promotes equal development across all regions to reduce variations in indicators like Net State Domestic Product (NSDP) and per capita income.

I) Causes of Regional Imbalances:

1. Natural Resource Endowments: There are disparities in the availability of land, forests, and water resources, which lead to uneven development across regions.
2. Climatic Conditions: Differences in rainfall and extreme geographical conditions, such as desert regions of Rajasthan and flood-prone areas of Assam and Bihar, hinder uniform development.
3. Infrastructure Deficiencies: Many backward regions suffer from a lack of basic infrastructure like transport, power, irrigation, and communication facilities.
4. Historical Factors: Certain regions remained underdeveloped due to neglect and misgovernance during British rule.
5. Geographical Diversity: Difficult terrains such as hilly regions (North-East, Himalayas) and drought-prone areas (Bundelkhand, Vidarbha) create barriers to development.

II) Measures Taken During the Plan Period:

1. Resource Transfer through Central Assistance: The Central government provided greater financial assistance to backward states by increasing their share in fund allocation.
2. Special Category Status: Some states were given special category status to receive additional central assistance for development projects.
3. Backward Region Grant Fund (BGRF): Established in 2007, this fund aimed to develop 250 backward districts by providing targeted financial support.
4. Gadgil Formula: Introduced from the Fourth Plan, it allocated funds based on criteria like per capita income and special problems, ensuring support to poorer states.
5. Area-Based Development Programmes: Specific programmes like Drought Prone Area Development Programme (1973) and Hill Area Development Programme (1974) targeted regions with unique challenges.
6. Industrial Incentives and Infrastructure Development: The government promoted industrial corridors, Special Economic Zones (SEZs), and offered subsidies and tax concessions to attract industries and MSMEs to backward regions.

Question 3.
Discuss the measures taken under privatization as a part of economic reforms.
Answer:
Privatization refers to the transfer of ownership, management, or control of public sector enterprises (PSEs) to the private sector, either fully or partially. It was a major component of the 1991 economic reforms, introduced to improve efficiency, reduce government burden, and promote competitiveness in the economy.

Measures Taken under Privatization:
1. Disinvestment: Disinvestment involves the sale of a part of the government’s shares in PSUs to private investors or the public. Introduced through the Industrial Policy of 1991, it aimed to reduce the financial burden on the government and improve PSU performance through private participation.

2. Institutional Mechanisms: To implement privatization effectively, several institutions were created:

• Disinvestment Committee (1992) under Dr. C. Rangarajan recommended selling up to 49% of shares in most PSUs.
• In 1996, PSUs were classified into strategic and non-strategic sectors.
• In 1999, the Department of Disinvestment was established, later renamed DIPAM in 2016. These measures ensured systematic and transparent implementation of privatization.

3. National Investment Fund (NIF): Established in 2005, the NIF received proceeds from disinvestment and utilized them for developmental and social welfare programmes instead of routine government expenditure.

4. Transfer of Management and Control: Privatization also involved transferring management through contracts, leases, and franchises. This enabled private firms to introduce better technology, efficient management, and improved productivity.

5. Examples of Disinvestment: Major PSUs such as NTPC, Maruti Udyog Limited, Power Grid Corporation, Coal India Limited, and Shipping Corporation of India underwent disinvestment, reflecting the wide scope of privatization across sectors.

6. Overall Impact and Concerns: Privatization improved efficiency, competition, and reduced political interference. However, concerns remained regarding labour security, possible job losses, and’excessive profit orientation.

Conclusion: Privatization, through disinvestment, institutional reforms, and transfer of management, played a key role in enhancing efficiency and competitiveness in the Indian economy.

Multiple Choice Questions

Question 1.
Which five-year plan has poverty eradication as its objective?
1) Second
2) Fifth
3) Eight
4) Tenth
Answer:
2) Fifth

Question 2.
he term ‘Hindu rate of growth” was first used by:
1) Raj Krishna
2) Mahalanobis
3) K.N.Raj
4) Gadgil
Answer:
3) K.N.Raj

Question 3.
Which of the following measures can be called stabilization measure?
1) Delicensing
2) Disinvestment
3) Elimination of QRs
4) Rupee devaluation
Answer:
4) Rupee devaluation

Question 4.
Which statement best reflects the principle of globalization?
1) Subsidizing domestic agriculture to promote exports
2) Export tariff discrimination between developed and developing countries
3) Entering into trade agreements with member countries
4) Import substitution and export promotion through non-tariff restrictions
Answer:
3) Entering into trade agreements with member countries

Question 5.
The name associated with Rolling Plan in India was:
1) D.R. Gadgil
2) Dr. Manmohan Singh
3) Prof. Lakdawalla
4) Montek Singh Ahluwalia
Answer:
3) Prof. Lakdawalla

Question 6.
Bombay Plan was prepared in 1943 by:
1) M.N. Roy
2) Jayaprakash Narayana
3) M. Visweswaraiah
4) 8 Industrialists
Answer:
4) 8 Industrialists

Question 7.
Conditions that forced India to introduce economic reforms in 1991 did not included
1) Fiscal Deficit
2) Debt Burden
3) Unfavourable Balance of Payments
4) Fall in Aggregate Demand
Answer:
4) Fall in Aggregate Demand

Question 8.
BIMARU states do not include:
1) Uttar Pradesh
2) Maharashtra
3) Madhya Pradesh
4) Rajasthan
Answer:
2) Maharashtra

Question 9.
The Strategy Document prepared by NITI Aayog covers a period of:
1) 3 years
2) 5 years
3) 7 years
4) 15 years
Answer:
3) 7 years

Question 10.
Most Favoured Nation (MFN) principle of the WTO:
1) Allows preferential treatment among selected nations
2) Ruled out preferential treatment among trading nations
3) Imposes tariffs specific to certain products
4) Prefers certain nations over others in case of textile exports
Answer:
2) Ruled out preferential treatment among trading nations

Fill in the Blanks

Question 1.
20-point Economic Programme was revised in 2006 and aligned to ____________.
Answer:
National Common Minimum Programme

Question 2.
The amount allocated to each Member of parliament under MPLADS scheme is Rs ____________ crores (from 2011).
Answer:
5

Question 3.
The letter ‘B’ in DBT scheme stands for ____________.
Answer:
Benefit

Question 4.
The Department responsible for handling disinvestment in India is called ____________.
Answer:
DIPAM

Question 5.
The Mission launched by NITI Aayog to promote a culture of innovation and entrepreneurship is the ____________.
Answer:
Atal Innovation Mission (AIM)

One Word Answers

Question 1.
Name the institution which fosters cooperative federalism in economic development?
Answer:
NITI Aayog

Question 2.
Which is provided to implement the Externally Aided Projects (EAP’s)?
Answer:
Additional central assistance

Question 3.
Highest growth rate was achieved in which five year plan?
Answer:
11th plan

Question 4.
Which Account of the Balance of Payments allows full convertibility of rupee?
Answer:
Current Account

Question 5.
What is the theme of the twelfth five-year plan?
Answer:
Faster, Sustainable and more inclusive growth.

Reviewing AP Inter 2nd Year Economics Study Material Chapter 6 Unemployment, Poverty and Inequalities Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 6th Lesson Unemployment, Poverty and Inequalities Questions and Answers

Very Short Answer Questions

Question 1.
Differentiate between underemployment and disguised unemployment?
Answer:

Question 2.
What is the calorie-norm with reference to poverty line recommended by Alagh committee?
Answer:
Calorie Norm (Alagh Committee – 1979): The poverty line based on daily calorie intake.

1. Rural areas: 2400 kcal per person per day
2. Urban areas: 2100 kcal per person per day

Question 3.
Distinguish between income poor and MPI poor?
Answer:

Question 4.
Explain the concept and purpose of international poverty line.
Answer:

• The international poverty line is a global standard used to measure poverty across countries, expressed in Purchasing Power Parity (PPP) dollars.
• Purpose: It helps to compare poverty levels internationally and assess progress in reducing global poverty.

Question 5.
Modified mixed recall period.
Answer:
Modified Mixed Recall Period (MMRP):

1. MMRP is a method used to estimate consumption expenditure by using different recall periods for different items.
2. Short recall (7 days) is used for frequently purchased items, while long recall (365 days) is used for infrequently purchased items to get more accurate data.

Question 6.
How does the Orange Economy create employment opportunities?
Answer:
Orange Economy – Employment Creation:

1. The Orange Economy creates employment by promoting creative and cultural industries, turning ideas and talent into economic activities.
2. Being labour-intensive, it provides large-scale job opportunities, particularly for youth and women.

Short Answer Questions

Question 1.
Explain any four types of unemployment.
Answer:
Types of Unemployment:
1) Involuntary Unemployment (Open Unemployment): This occurs when individuals are willing and able to work at current wage rates but cannot find jobs due to lack of employment opportunities. Ex: A group of diploma holders remaining unemployed after applying jobs for various companies because there are no vacant positions available in local companies.

2) Structural Unemployment: This is caused by long-term changes in the economy, leading to a mismatch between workers’ skills and job requirements.
Ex: Web developers losing jobs due to Artificial Intelligence (Al) tools.

3) Seasonal Unemployment: This arises in industries that operate only during specific seasons, like agriculture or sugar industry, where workers remain unemployed during the off-season. Ex: Agricultural workers unemployed after the harvesting season.

4) Disguised Unemployment: This occurs when more people are employed than required, and some workers have zero marginal productivity, meaning their removal does not reduce output. It is common in Indian agriculture.
Ex: Extra family members working on a small farm where fewer workers are sufficient.

Question 2.
Explain the different reference periods in measuring unemployment.
Answer:
1) Usual Status (US): Measures unemployment over a reference period of 365 days preceding the survey. It is used to capture long-term or chronic unemployment. Under this, a person is classified as Principal Status (PS) if he worked for more than 183 days, and Subsidiary Status (SS) he worked occasionally or part-time during the year.

2) Current Weekly Status (CWS): Uses a 7-day reference period preceding the survey. It helps to identify short-term or temporary unemployment and weekly fluctuations in employment. A person is considered employed if they worked for at least one hour on at least one day during the week.
Ex: A young man who found gig work for 2 days in the previous week would be considered employed under CWS, even though he was jobless for the remaining 5 days of that week.

3) Current Daily Status (CDS): Considers each day of the 7 days preceding the survey . It is the most sensitive measure of labour underutilization, especially in rural and informal sectors. It records daily employment status, capturing partial and intermittent work by counting the number of days a person was employed or unemployed.
Ex: A woman who worked as a daily wage labourer for 3 days out of 7 days is recorded as employed for 3 days and unemployed for 4 days, providing a detailed view of partial and intermittent work.

Question 3.
What are the different types of poverty?
Answer:
Types of Poverty:

1. Absolute Poverty: This is a condition where individuals lack basic necessities required for survival with human dignity, such as food, water, clothing, shelter, education, and healthcare. It is mainly seen in developing countries.
2. Relative Poverty: This refers to people living below the average standard of living of their society, highlighting economic inequality and social exclusion, mostly in developed countries.
3. Generational Poverty: This is a long-term condition where poverty is passed from one generation to another, caused by lack of access to education, assets, and skills over time.
4. Situational Poverty: This is a temporary poverty caused by sudden events like natural disasters, job loss, war, or death of an earning member (Ex: COVID-19 impact).

Question 4.
Explain the Multidimensional Poverty Index (MPI), its indicators, and India’s progress from 2005-06 to 2019-21.
Answer:
Multidimensional Poverty Index (MPI): It was developed by OPHI and UNDP (2010).
In India, MPI is prepared by NITI Aayog. It is a comprehensive measure that captures multiple deprivations across various aspects of life, rather than relying only on income or consumption.

MPI Indicators:
MPI is based on three dimensions with 12 indicators (India-specific):

1. Health (3): Nutrition, Child & Adolescent Mortality, Maternal Health
2. Education (2): Years of schooling, School attendance
3. Living Standards (7): Cooking fuel, sanitation, drinking water, electricity, housing, assets, bank account. A person is considered MPI poor if deprived in three or more indicators.

Formula: MPI = H × A (Headcount Ratio × Intensity of Poverty).

India’s Progress (2005-06 to 2019-21): India has shown significant reduction in MPI.

1. Headcount Ratio: Declined from 55.34% to 14.96%
2. intensity: Reduced from 54.96% to 44.39%
3. MPI Value: Fell from 0.304 to 0.066

Improvements were seen in bank accounts, electricity, sanitation, and nutrition, though cooking fuel, housing, and nutrition still need attention.

Question 5.
Write any four poverty alleviation measures in India.
Answer:
Poverty Alleviation Measures in India:
1) Employment Generation Schemes: Employment Generation Schemes are launched to create jobs and improve income levels for the poor through wage and self-employment. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides 100 days (now 125 days) of guaranteed wage employment to rural households, helping reduce poverty.

2) Food Security Programmes: The Public Distribution System (PDS) supplies essential food items like rice, wheat, and sugar at subsidized prices to BPL (Below Poverty Line) and AAY (Antyodaya Anna Yojana) beneficiaries.

3) Health Schemes: The Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY) provides health insurance up to Rs. 5 lakh per family per year for hospitalization to poor families.

4) Free Education and Scholarships: The Right to Education Act, 2009 ensures free education for children (6-14 years), and Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) provides financial assistance for higher education.

Question 6.
Summarize the inequality trends in India as analysed in the World Inequality Report 2024.
Answer:
The World Inequality Report 2024 highlights a sharp rise in income and wealth inequality in India, describing the present situation as the “Billionaire Raj” due to extreme concentration of wealth at the top.

1) Income Inequality: The top 1 % earns 22.6% of national income (2022-23) compared to 6.1% in 1982, while the bottom 50% earns only 15%. The top 10% share increased to nearly 60%, showing widening inequality.

2) Wealth Inequality: The top 1 % holds 39.5% of national wealth, and the top 0.001 % alone holds 16%, whereas the bottom 50% has only 6.5%, indicating severe disparity.

3) Surge in Billionaires: The number of billionaires increased from 70 (2014) to 271 (2024), with total wealth reaching $1 trillion.

4) Rising Gini Coefficient: Inequality has increased significantly, with income Gini rising from 0.47 (2000) to 0.61 (2022-23) and wealth Gini reaching 0.75, indicating high inequality.

Long Answer Questions

Question 1.
What is meant by unemployment ? Explain the causes of unemployment in India.
Answer:
Unemployment is defined by the ILO (International Labour Organisation) as a situation where a person is not able to find work even though they are willing to work at the prevailing market wages. It is an important indicator of economic health.

Causes of Unemployment in India:
1) Jobless Growth: Economic growth has not been accompanied by sufficient job creation. For example, even when GDP grew at 6%, unemployment remained high at 11%, indicating growth without adequate employment opportunities.

2) Rapid Population Growth: The fast increase in population leads to a rapid rise in labour force, putting pressure on the job market as employment generation does not keep pace.

3) Seasonal Nature of Agriculture: A large section of the population depends on agriculture, where workers face unemployment during the off-season, leading to seasonal unemployment.

4) Adoption of Technology and Automation: Increased use of automation and capital-intensive techniques reduces the demand for human labour, causing job losses.

5) Education-Employability Mismatch: There is a gap between skills possessed by graduates and industry requirements, resulting in low employability (around 54.8%) and underemployment.

6) Skill-Job Mismatch: While demand exists for skilled workers, a large part of the labour force is unskilled or semi-skilled, especially’in the informal sector, leading to unemployment.

7) Economic Recession and Layoffs: Economic slowdowns force firms to reduce workforce, as seen during 2008-19 and 2020-23 (COVID-19 period), increasing unemployment.

8) Underperformance of the Service Sector: Some segments of the service sector underperform globally, leading to downsizing and fewer employment opportunities, especially in industries like IT.

9) Social Barriers and Discrimination: Certain groups and women face social discrimination and limited access to employment, restricting equal job opportunities.

Question 2.
Define poverty. What are the causes and alleviation measures of poverty?
Answer:
Poverty is defined as a condition where an individual or household is deprived of the basic needs of human life. It is a multi-dimensional condition caused by lack of adequate income to afford necessities such as food, clean water, clothing, shelter, education, and healthcare.

I) Causes of Poverty in India:

1. Historical Factors: Colonial rule destroyed traditional industries and drained resources, while the zamindari system and insecure tenancy exploited farmers, leading to agricultural stagnation.
2. Population Growth: Rapid population growth puts pressure on limited resources, causing shortages of food and services, and leading to urban crowding and slums.
3.  Unemployment: Lack of employment opportunities results in no income, directly increasing poverty levels.
4. Inequalities of Wealth and Income: Unequal distribution of income and wealth deprives a large section of people of basic necessities.
5. Subdivision of Landholdings: Continuous division of land into small and uneconomical plots reduces agricultural productivity and income.
6. Inflation and Rising Cost of Living: Increasing prices make even basic necessities unaffordable for the poor.

II) Poverty Alleviation Measures:

1. Employment Generation Schemes (MGNREGA, PMEGP, NRLM, DAY-NULM): These schemes provide wage and self-employment opportunities, with MGNREGA guaranteeing up to 125 days of employment.
2. Food Security Programmes (PDS): Essential food items are provided at subsidized prices to ensure food security.
3. Health Schemes (PM-JAY): Provides health insurance up to Rs. 5 lakh per family for low- income groups.
4. Free Education and Scholarships (RTE, PM-USP): Ensures free education (6-14 years) and financial support for higher education.
5. Nutrition and Welfare Initiatives (PM-POSHAN, Ujjwala Yojana, Swachh Bharat, PMJDY): Improve nutrition, sanitation, clean fuel access, and financial inclusion.
6. Housing Schemes (PMAY): Provide housing and shelter to poor households.

Question 3.
Explain the causes of wealth and income inequalities in India.
Answer:
Causes of Wealth and Income Inequalities in India:
Wealth and income inequalities in India are the result of historical, structural, economic, and technological factors that create unequal access to resources, opportunities, and income. These actors reinforce each other and lead to a widening gap between rich and poor.

1. Historical and Structural Factors: India’s colonial past led to the destruction of traditional industries and concentration of resources in a few hands. Along with this, the caste-based social structure restricted access to land, education, and jobs for certain groups. Although post-independence policies like land reforms reduced inequalities initially, their long-term impact has weakened, and disparities continue to persist.

2. Economic Liberalization (1991 Reforms): After economic reforms, India experienced rapid growth, but the benefits were unevenly distributed. Liberalization favored capital-intensive industries and skilled labour, allowing those with capital and higher skills to earn more. Wealthy individuals could invest and accumulate more wealth, while the poor did not benefit equally, leading to rising inequality.

3. Urban-Rural Divide: Economic development has been concentrated in urban areas, where industries, infrastructure, and services are better developed. Rural areas lag behind in income opportunities and productivity. Even within cities, inequality has increased, as high-income groups benefit more from growth compared to low-income workers.

4. Education and Skill Disparities: Unequal access to quality education has created a wide gap in skills. India’s education system has often prioritized higher education, leaving many without basic skills. As a result, skilled workers earn significantly higher wages, while unskilled workers remain in low-paying jobs, increasing income inequality.

5. Digital Divide: Unequal access to technology and internet further widens inequality. Limited digital access restricts opportunities in education, employment, and financial services. For instance, low internet access in schools and among rural populations, especially women, reduces their ability to compete in a modern economy.

6. Dominance of Informal Economy: A large share of India’s workforce is employed in the informal sector, where wages are low, job security is absent, and there are no social protections. This limits income growth for the majority, while a small section involved in formal and capital-intensive sectors earns much higher incomes, widening inequality

7. Inequalities in India are caused by deep-rooted structural issues and uneven economic development, and addressing them requires policies focused on inclusive growth, equal access to education and technology, and formal employment generation.

Multiple Choice Questions

Question 1.
Disguised unemployment means:
1) Productivity of workers is low
2) Marginal Productivity of workers is zero
3) Unemployment caused by seasonal fluctuations
4) Workers are on the move from one job to the other
Answer:
2) Marginal Productivity of workers is zero

Question 2.
What is the reference period for Usual Status unemployment?
1) 365 days
2) 183 days
3) 90 days
4) 30 days
Answer:
1) 365 days

Question 3.
MPI poor refers to :
1) income poor
2) those deprived of more than 3 weighted indicators
3) deprival of non-food consumption necessities
4) deprival of health and education
Answer:
2) those deprived of more than 3 weighted indicators

Question 4.
As per the NITI Aayog, poverty rate for the year 2022-23 is :
1) 29.8 %
2) 11.8 %
3) 20.9 %
4) 33.8 %
Answer:
2) 11.8 %

Question 5.
Which of the following statements is correct in the Indian context?
1) Income inequality is more pronounced than wealth inequality
2) Wealth inequality is more pronounced than income inequality
3) Economic reforms reduced income equality but increased wealth inequality
4) Bottom 20% earn more than 50% of net personal income
Answer:
2) Wealth inequality is more pronounced than income inequality

Question 6.
Higher Gini index indicates:
1) more equality
2) more inequality
3) Perfect equality
4) Extreme poverty
Answer:
2) more inequality

Question 7.
Extreme poverty line defined by the World Bank:
1) Is globally comparable
2) Applies to lower middle-income group of countries only
3) Applies to upper middle income group of countries
4) Is country specific
Answer:
1) Is globally comparable

Question 8.
Mid-day meals is rebranded as
1) Ujjwala Yojana
2) PMAY
3) PM-POSHAN
4) PMJDY
Answer:
3) PM-POSHAN

Question 9.
Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP)
1) Is a merit-based scholarship scheme
2) Provides financial assistance to merit students from low-income families
3) Provides assistance to SC, ST, BC students of higher education based on merit
4) Provides financial assistance to low-income group students based on merit to pursue higher education
Answer:
4) Provides financial assistance to low-income group students based on merit to pursue higher education

Question 10.
PM-JAY Scheme provides:
1) free health care to all individuals aged above 70 years
2) subsidised health care to all senior citizens
3) insurance cover to all aged above 60 years
4) reimburses medical expenses of senior citizens for select diseases
Answer:
1) free health care to all individuals aged above 70 years

Fill in the Blanks

Question 1.
Rangarajan Committee estimated ____________ poverty rate than the Tendulkar committee.
Answer:
higher /greater

Question 2.
The number of weighted indicators used in Living Standards dimension of MPI index are ____________.
Answer:
6

Question 3.
India is the ____________ most equal country as per the World Inequality Report.
Answer:
4th

Question 4.
____________ is the nodal agency for estimating poverty in India, on any.
Answer:
Niti Aayog

Question 5.
Under CWS, a person is considered employed if he worked for at least ____________ on any day in the reference week.
Answer:
one hour

One Word Answers

Question 1.
What is the status other than principal status in the context of unemployment during a reference period of 365 days.
Answer:
Subsidiary status

Question 2.
In what context do you mention the phrase surge in the billionaire count?
Answer:
Inequality

Question 3.
Which Committee was constituted to revise methodology to identify BPL households?
Answer:
Saxena Committee

Question 4.
Which State has the lowest head count ratio under MPI, 20237
Answer:
Goa

Question 5.
Number of days of work guaranteed under VB-GRAM G act?
Answer:
125 days

Regular practice with AP Inter 2nd Year Chemistry Study Material Chapter 10 Biomolecules Questions and Answers helps students stay prepared for examinations.

AP Inter 2nd Year Chemistry 10th Lesson Biomolecules Questions and Answers

I. Multiple Choice Questions

Question 1.
Which of the following does not come under biomolecules?
1) Cellulose
2) Lactose
3) Nylon
4) Lipid
Answer:
3) Nylon
Biomolecules are naturally occurring in living systems.
Nylon is a synthetic polymer, not biological.

Question 2.
The carbohydrate which does not undergo hydrolysis is
1) Sucrose
2) Starch
3) Ribose
4) Cellulose
Answer:
3) Ribose
Monosaccharides cannot be hydrolyzed further. Ribose is a monosaccharide

Question 3.
The number of asymmetric carbons present in the open chain structure of D-( + )-glucose is
1) 3
2) 4
3) 2
4) 5
Answer:
2) 4
Open-chain glucose has 4 chiral (asymmetric) carbons.All except C₁ and C₆.

Question 4.
Which of the following is not an example of a hormone?
1) Insulin
2) Estrogen
3) Pyridoxine
4) Androgen
Answer:
3) Pyridoxine
Hormones are chemical messengers (insulin, estrogen, androgen).
Pyridoxine is a vitamin (B₆), not a hormone.

Question 5.
α-D-( + )-Glucopyranose and β-D-( + )-Glucopyranose are
1) Anomers
2) Enantiomers
3) Epimers
4) All of these
Answer:
1) Anomers
α and β forms differ at anomeric carbon (C).So they are anomers.

Question 6.
Which of the following produces only glucose units on complete hydrolysis?
1) Lactose
2) Maltose
3) Raffinose
4) Sucrose
Answer:
2) Maltose
Maltose = glucose + glucose. On hydrolysis → only glucose units

Question 7.
Which reagent does not react with -CHO group of glucose?
1) NH₂OH
2) NaHSO₃
3) Br₁ in water
4) HCN
Answer:
2) NaHSO₃
Glucose has -CHO group → reacts with most reagents.
NaHSO₃ does NOT react with glucose (due to cyclic form dominance).

Question 8.
Which compound inverts its optical rotation on hydrolysis?
1) Glucose
2) Sucrose
3) Maltose
4) Fructose
Answer:
2) Sucrose
Inversion of rotation occurs when hydrolysis changes optical rotation.
Sucrose → glucose + fructose → inversion.
Dextrorotatory sucrose gives a mixture of dextro glucose laevo fructose in which proportion of laevo is more.

Question 9.
Which of the following amino acid is optically inactive?
1) Alanine
2) Lysine
3) Glycine
4) Valine
Answer:
3) Glycine
Optical inactivity occurs when no chiral center. Glycine has no chiral carbon.

Question 10.
Which polysaccharide contains β – D – glucose as its building unit?
1) Lactose
2) Arabinose
3) Cellulose
4) Starch
Answer:
3) Cellulose
Cellulose is polymer of β-D-glucose. Starch is α-D-glucose.

Question 11.
Which amino acid is basic in nature?
1) Glutamic acid
2) Lysine
3) Tyrosine
4) Leucine
Answer:
2) Lysine
Basic amino acids have extra -NH₂, groups. Lysine is strongly basic.

Question 12.
Albumin is an example of
1) Fibrous Protein
2) Carbohydrate
3) Globular Protein
4) Lipid
Answer:
3) Globular Protein
Albumin is soluble protein → globular type. Globular protein

Question 13.
Enzymes in the living systems
1) Provide immunity
2) Provide energy
3) Transport oxygen
4) Catalyze biological reactions
Answer:
4) Catalyze biological reactions
Enzymes are biological catalysts. They speed up biochemical reactions.

Question 14.
Which vitamin deficiency causes convulsions?
1) Vitamin C
2) Vitamin D
3) Vitamin E
4) Vitamin B₆
Answer:
4) Vitamin B₆
Vitamin B₆ deficiency affects nervous system → convulsions.

Question 15.
Which nitrogen base is not the part of RNA?
1) Uracil
2) Cytosine
3) Thymine
4) Guanine
Answer:
3) Thymine
RNA contains U, C, A, G Thymine is present only in DNA [A, G, C, T]

II. Fill in the Blanks

Question 1.
In sucrose molecule, glucose and fructose are connected between _______ atoms respectively.
Answer:
C₁ and C₂

Question 2.
Curdling of milk is an example of _______.
Answer:
Denaturation of proteins.

Question 3.
Complementary base for the adenine present in DNA is ________.
Answer:
Thymine.

Question 4.
Rickets disease is caused by the deficiency of vitamin ________.
Answer:
Vitamin D.

Question 5.
Hormones are molecules that act as _______.
Answer:
Intercellular messengers.

III. One Word Answer Questions

Question 1.
Which linkage connects two monosaccharide units?
Answer:
Glycosidic linkage connects two monosaccharide units

Question 2.
Which non-essential amino acid is optically inactive?
Answer:
Glycine is optically inactive non-essential amino acid.

Question 3.
What type of bonding helps in stabilizing the α-helix structure of proteins?
Answer:
Hydrogen bonding helps in stabilizing the α-helix structure of proteins.

Question 4.
Name the disease that occurs due to deficiency of ascorbic acid.
Answer:
Scurvy (bleeding gums) occurs due to deficiency of ascorbic acid.

Question 5.
Increased level of which hormone causes hyperthyroidism?
Answer:
Increased level of Thyroxine causes hyperthyroidism.

IV. Very Short Answer Questions

Question 1.
Name the different types of carbohydrates on the basis of their hydrolysis. Give one example for each.
Answer:
Classification of Carbohydrates (Saccharides) on the basis of their hydrolysis:
a) Monosaccharides: These are the simple carbohydrates that cannot be broken further into smaller units on hydrolysis
Ex: Glucose and fructose.

b) Disaccharides: These carbohydrates give 2 units of monosaccharides on hydrolysis.
Ex: Sucrose, lactose

c) Oligosaccharides: These carbohydrates give 2-10 units of monosaccharides on hydrolysis.
Ex: Raffinose(which gives glucose, fructose and galactose on hydrolysis)

d) Polysaccha rides: These carbohydrates give large number of monosaccharides on hydrolysis.
Ex: Starch, cellulose etc.,

Question 2.
Why are sugars classified as reducing and non-reducing sugars?
Answer:
Sugars are classified as reducing and non-reducing sugars to test whether the sugar has a free aldehyde or ketone group that can act as a reducing agent.
Reducing sugars reduce Fehling’s solution or Tollen’s reagent.
They contain free aldehyde or Ketonic group. Ex: Glucose & Maltose
Non-reducing sugars do not reduce Fehling’s solution or Tollen’s reagent.
They do not have free aldehyde or ketonic group. Ex: Sucrose & Cellulose

Question 3.
What are anomers?
Answer: Anomers are those isomers which differ in orientation of -OH at C-1 (first carbon)
Ex: α-D-glucose and β-D-glucose

Question 4.
What is Zwitter ion? Give an example.
Answer:
Zwitter ion is a molecule or ion containing separate positively and negatively charged groups, yet it is electrically neutral overall.
Ex: In amino acid, the -NH₂ (amino) group is basic and -COOH group is acidic. In aqueous solution, the carboxylic group loses a proton and amino group accepts the proton giving rise to a dipolar zwitter ion.

Question 5.
Write the names of three types of RNA.
Answer:
Three types of RNA:
a) m-RNA (messenger RNA)
b) r-RNA (ribosomal RNA )
c) t-RNA (transfer RNA)

Question 6.
Name the vitamin responsible for the coagulation of blood.
Answer:
Vitamin K is responsible for the coagulation of blood.

Question 7.
What is glycogen? How is it different from starch?
Answer:

• Glycogen is a polysaccharide which is stored in animal body (liver, muscles, brain).
• Starch is a polysaccharide which is stored in plants.
• Glycogen is more highly branched than Starch (amylopectin).

Question 8.
What are essential and non-essential amino acids? Give one example for each.
Answer:
Essential Amino acids: These are the amino acids which cannot be synthesised in the body and must be taken in diet.
Ex: Valine, leucine, phenylalanine .

Non-essential amino acids: These are the amino acids which can be synthesised in the body
Ex: Glycine alanine, glutamic acid.

Question 9.
Differentiate between globular and fibrous proteins.
Answer:

Question 10.
What is the difference between a nucleoside and a nucleotide?
Answer:
These two are fundamental building blocks of nucleic acids DNA/ RNA

V. Short Answer Questions

Question 1.
Write a short note on the structure of glucose.
Answer:
Structure & Properties of of glucose :
a) Acylation of glucose with acetic anhydride gives glucose penta acetate.
Hence glucose molecule has 5 -‘OH’ groups.

b) Glucose reacts with hydroxylamine and one molecule of HCN to give monoxime and cyanohydrin respectively. Hence glucose has H one carbonyl group.

c) Glucose reduces Tollen’s reagent to metallic silver and Fehling’s solution to reddish brown Cu₂O.
Thus, glucose molecule is oxidised to gluconic acid. Hence glucose molecule contains an aldehydic (-CHO) group.

d) Strong oxidising agents like Cone. HN03, oxidise glucose to gluconic acid and finally to saccharic acid. Hence glucose molecule has a primary alcohol group (-CH2OH).

e) Glucose on prolonged heating with HI gives n-hexane.
Hence glucose has a six carbon chain with linear structure.

f) D- glucose when treated with excess of phenyl hydrazine, glucosazone is formed.
Based on the above observations, two open chain structures are proposed for glucose.
But glucose does not react with SchifTs reagent and sodium bisulphite.
Penta acetate of glucose does not react with hydroxylamine. Thus glucose shows muta rotation.
These properties suggest that glucose has a cyclic structure.

Question 2.
Explain the classification of proteins as primary, secondary, tertiary and quarternary proteins with respect to their structure.
Answer:
Structures of Proteins:
i) Primary structure of protein: The sequence in which various amino acids are arranged in a protein is called its primary structure. Any change in the sequence of amino acids creates different protein.

ii) Secondary structure of protein: it refers to shape in which a long polypeptide chain exists. A protein may assume α-helix structure of β-pleated structure. The a-helix structure results due to regular coiling of polypeptide chain.
Ex: Keratin in hair, nails, wood and myosin in nucleus

In β-pleated sheet structure, all peptide chairts are stretched to nearly maximum extension They are arranged side by side and held together by intramolecular hydrogen bonding.
Ex: Silk has β-pleated structure.

iii) Tertiary structure of proteins The tertiary structure of proteins represent overall folding of the polypeptide chain i.e., further folding of the secondary structure.

It gives rise to two major molecular shapes (i) Fibrous and (ii) Globular.

The main forces which stabilise 2° and 3° of proteins are hydrogen bonds, disulphide linkage. Van der waals forces and electrostatic force of attraction.

iv) Quaternary structure: Some of the proteins are composed of two or more polypeptide chains known as subunits. The spatial arrangement of these subunits with respect to each other is known as quaternary structure.

Question 3.
Explain the denaturation of proteins.
Answer:
Denatu ration: When a protein in its native form, is subjected to physical change such as change in temperature, or chemical change like change in pH, the hydrogen bonds are disturbed.

The protein globules unfold, helix get uncoiled and protein loses its biological activity.

This is called denaturation of proteins. Secondary and tertiary structures are destroyed but the primary structure remains as such.Ex: Curdling of milk, Coagulation of egg by boiling etc.,

Question 4.
What are enzymes?Give examples.
Answer:
Enzymes are biological catalysts. Each biological system requires a different enzyme. Enzymes are specific and efficient in their action. They are required in only small quantity and work at optimum temperature (310K) and pH (7.4) under one atmospheric pressure. Chemically, they are globular proteins. However some enzymes are also associated with some non-protein components called the co-factors for their activity.
Ex: Invertase, zymase, Diastase, Maltase, Urease, Pepsin

Question 5.
Write notes on vitamins.
Answer:
Vitamins are essential organic compounds required in small quantities for the normal growth and metabolic functioning of the body. Since most of the vitamins cannot be synthesized by the body, they must be obtained through diet or supplements.
Vitamins are designated by A, B, C, D, E, K. Vitamin B is sub divided into B₁, B₂, B₆, B₁₂
Vitamins are classified into two groups depending on their solubility in water or fat.

1. Fat soluble vitamins: Vitamins which are soluble in fat and oils but insoluble in water belong to this group. Such vitamins are A,D,E ,K. They are stored in liver and adipose tissues.
2. Water soluble vitamins: B group vitamins and vitamin C are soluble in water. Water soluble vitamins must be supplied regularly in diet because they are readily excreted in urine and cannot be stored (except vitamin B₁₂) in our body.

Vitamin – Sources – Deficiency diseases

Question 6.
What are hormones? Give one example for each.

1. steroid hormones
2. Polypeptide hormones and
3. amino acid derivatives.

Answer:
Hormones : Hormones are biomolecules that act as intercellular messengers.
They transfer biological information from one group of cells to distant tissues (or) organs.
These are produced by endocrine glands in the body and are poured directly in the blood stream which transports them to the site of action.
They are basically two types (i) Animal hormones (ii) Plant hormones

1. Steroid hormones are lipid-soluble hormones derived from cholesterol.
   Ex: Testosterone (male sex hormone), Estrogen (female sex hormones)
2. Polypeptide hormones are made up of chains of amino acids (peptides/proteins).
   Ex: Insulin (regulates blood glucose), endorphins.
3. Amino acid derivatives are derived from tyrosine or tryptophan.
   Ex: Epinephrine and norepinephrine.

Question 7.
Give the dietary sources of the following vitamins and name the diseases caused by their deficiency (a) A (b) D (c) E and (d) K
Answer:

Question 8.
Write the importance of carbohydrates.
Answer:
Carbohydrates are essential biomolecules needed for the life of both plants and animals. Honey is an instant source of energy. Carbohydrates are used as storage molecules as starch in plants and glycogen in animals. Cell wall of bacteria and plants is madeup of cellulose. Wood and cotton fibre contain cellulose. D-ribose and 2-deoxy-D-ribose are present in nucleic acids. “Streptomycin” is a carbohydrate antibiotic. Other antibiotics of this family are kenamycins, neomycins and gentamycins. Antigenic carbohydrates are synthesised to fight against cancer.

Question 9.
Write about polysaccharides with starch and cellulose as examples.
Answer:
Polysaccharides: These carbohydrates give large number of monosaccharides on hydrolysis. They are joined together by glycosidic linkages. They are the most common carbohydrates in nature. They mainly act as the food storage or structural materials.
Ex: Starch, cellulose .

i) Starch: Starch is the main storage polysaccharide of plants. It is the most important dietary source for human beings. High content of starch is found in cereals, roots, tubers and some vegetables. It is a polymer of a-D-glucose and it consists of Amylose and Amylopectin.

Amylose is water soluble component which constitutes about 15-20% of starch. Chemically amylose is a long unbranched chain with 200-1000 a-D-(+)-glucose units held by C-1 to C-4 glycosidic linkage.

Amylopectin is insoluble in water and constitutes about 80-85% of starch. It is a branched chain polymer of α-D-glucose units in which chain is formed by C1-C4 glycosidic linkage whereas branching occurs by C1-C6 glycosidic linkage.

ii) Cellulose: Cellulose occurs exclusively in plants and it is the most abundant organic substance in plant kingdom. It is a predominant constituent of cell wall of plant cells. Cellulose is a straight chain polysaccharide composed only of P-D-glucose units which are joined by glycosidic linkage between C-1 of one glucose unit and C-4 of the next glucose unit.

Question 10.
Write short notes on Sucrose.
Answer:

1. Sucrose is a naturally occuring disaccharide sugar (C₁₂H₂₂O₁₁) composed of glucose and fructose. It is commonly known as table sugar or cane sugar.
2. It is white, odorless, crystalline solid
3. It is found in sweet fruits, but commercially extracted from sugarcane.
4. It is used as sweetener, perservatives (Jams & Jellyes), baking
5. Sucrose is a non reducing sugar because the reducing groups of glucose and fructose are involved in glycosidic bond formation.
6. Sucrose is dextrorotatory but after hydrolysis it is leavorotatory because
   the laevorotation of fructose (-92.4°) is more than dextrorotation of glucose (+52.5°).
7. Hydrolysis of sucrose brings about a change in specific rotation, from dextro (+) to laevo(-) hence it is known as invert sugar.
8. Sucrose on hydrolysis gives equimolar mixture of D-(+)-glucose and D-(-) fructose.
   

VI. Long Answer Questions

Question 1.
Explain the classification of carbohydrates with examples.
Answer:
Classification of Carbohydrates
I) Classification based on number of units of Saccharides:
a) Monosaccharides: These are the simple carbohydrates that cannot be broken further into smaller units on hydrolysis Ex; Glucose and fructose.

b) Disaccharides: These carbohydrates give 2 units of monosaccharides on hydrolysis.
Ex; Sucrose, lactose

c) Oligosaccharides: These carbohydrates give 2-10 units of monosaccharides on hydrolysis.
Ex; Raffinose(which gives glucose, fructose and galactose on hydrolysis)

d) Polysaccharides; These carbohydrates give large number of monosaccharides on hydrolysis.
Ex: Starch, cellulose

Different types of Monosaccharides:

II) Classification based on functional group: If a carbohydrate contains an aldehyde group, it is known as aldose and if it contains a Keto group, it is known as a ketose.

Question 2.
Write notes on (a) enzymes and (b) vitamins
Answer:
(a) Enzymes: Enzymes are biological catalysts. Each biological system requires a different enzyme. Enzymes are specific and efficient in their action. They are required in only small quantity and work at optimum temperature (310K) and pH (7.4) under one atmospheric pressure. Chemically, they are globular proteins. However some enzymes are also associated with some non-protein components called the co-factors for their activity.
Ex: Invertase, zymase, Diastase, Maltase, Urease, Pepsin .
Invertase converts Sucrose into Glucose and Fructose

(b) Vitamins are essential organic compounds required in small quantities for the normal growth and metabolic functioning of the body. Since most of the vitamins cannot be synthesized by the body, they must be obtained through diet or supplements.
Vitamins are designated by A,B,C,D,E,K. Vitamin B is sub divided into B₁, B₂, B₆, B₁₂. Vitamins are classified into two groups depending on their solubility in water or fat.

1. Fat soluble vitamins: Vitamins which are soluble in fat and oils but insoluble in water belong
   to this group. Such vitamins are A,D,E ,K. They are stored in liver and adipose tissues.
2. Water soluble vitamins: B group vitamins and vitamin C are soluble in water. Water soluble vitamins must be supplied regularly in diet because they are readily excreted in urine and cannot be stored (except vitamin B₁₂) in our body.

Question 3.
Explain the structure and functions of DNA and RNA.
Answer:
NUCLEIC ACIDS (DNA & RNA): Nucleic acids are long chain biopolymers of nucleotides
with a polyphosphate ester chain. They consists of a base (a pentose sugar) and phosphate group DNA and RNA – Structure and Functions 1. 1. DNA (Deoxyribonucleic Acid):

• Structure of DNA: It is made up of repeating units called nucleotides.
• Each nucleotide contains: Deoxyribose sugar,Phosphate group, Nitrogen base
• Nitrogen bases in DNA: Adenine (A),Thymine (T),Guanine (G),Cytosine (C)
• DNA has a double helical structure with two antiparallel strands.
• Base pairing: A pairs with T, G pairs with C

Functions of DNA:

1. Stores hereditary/genetic information.
2. Controls cell activities through protein synthesis.
3. Transfers genetic traits from parents to offspring.
4. Undergoes replication before cell division.

2. RNA(RibonucIeic Acid)
Structure of RNA: It is usually single stranded.
Each nucleotide contains: Ribose sugar,Phosphate group,Nitrogen base Nitrogen bases in RNA:Adenine (A),Uracil (U),Guanine (G),Cytosine (C) In RNA, Uracil replaces Thymine.
Functions of RNA:

1. Helps in protein synthesis.
2. Carries genetic message from DNA to ribosomes.
3. Forms ribosomes and helps amino acid transport.

Structural differences between RNA and DNA

Question 4.
Write notes on the functions of major hormones in the human body.
Answer:
Hormones help to maintain the balance of biological activities in the body.

1. Insulin keeps the blood glucose level with in the limit.
2. Growth hormones and sex hormones play role in growth and development.
3. Hormones released by gonads are responsible for development of secondary sexual characters.
4. Adrenal cortex release glucocorticoids and mineralocorticoids.
5. The glucocorticoids modulate inflammatory reactions and are involved in reaction to stress.
6. The mineralocorticoids control the level of excretion of water and salt by the kidney.

Objective Questions

Question 1.
Which of the following reactions of glucose can be explained only by its cyclic structure?
1) Glucose forms pentaacetate
2) Glucose reacts with hydroxylamine to form an oxime
3) Pentaacetate of glucose does not react with hydroxylamine
4) Glucose is oxidised by nitric acid to gluconic acid
Answer:
3) Pentaacetate of glucose does not react with hydroxylamine

Question 2.
Which of the following statement is not true about glucose?
1) It is an aldohexose
2) On heating with HI it forms n-hexane
3) It is present in furanose form
4) It does not give 2,4-DNP test
Answer:
3) It is present in furanose form

Question 3.
Sucrose (cane sugar) is a disaccharide. One molecule of sucrose on hydrolysis gives ______
1) 2 molecules of glucose
2) 2 molecules of glucose +1 molecule of fructose
3) 1 molecule of glucose + 1 molecule of fructose
4) 2 molecules of fructose
Answer:
3) 1 molecule of glucose + 1 molecule of fructose

Question 4.
Sucrose on hydrolysis gives
1) β-D-glucose + α-D-fructose
2) α-D-glucose + β-D-glucose
3) α-D-glucose + β-D-fructose
4) α-D-fructose + β-D-fructose
Answer:
3) α-D-glucose + β-D-fructose

Question 5.
Which one of the following sets of monosaccharides forms sucrose?
1) α-D-galactopyranose and α-D-glucopyranose
2) α-D-glucopyranose and β-D-fructofuranose
3) β-D-glucopyrauose and α-D-fructofuranose
4) α-D-glucopyranose and β-D-fructopyranose
Answer:
2) α-D-glucopyranose and β-D-fructofuranose

Question 6.
Which of the following does not exhibit the phenomea of mutarotation?
1) (+) Sucrose
2) (+) Lactose
3) (+) Maltose
4) (-) Fructose
Answer:
1) (+) Sucrose

Question 7.
Which one of the following statements is not true regarding (+) lactose?
1) (+) lactose is a β-glycoside formed by the union of a molecule of D-(+)- glucose and a molecule of D-(+)-galactose
2) (+) lactose is a reducing sugar and does not exhibit mutarotation
3) (+) lactose, C₁₂H₂₂O₁₁, contains 80-H groups
4) On hydrolysis (+) lactose gives equal amount of D-(+)- glucose and D-(+)- galactose
Answer:
2) (+) lactose is a reducing sugar and does not exhibit mutarotation

Question 8.
The hormone that helps in the conversion of glucose to glycogen is
1) cortisone
2) bile acids
3) adrenaline
4) insulin
Answer:
4) insulin

Question 9.
Glycogen is a branched chain polymer of a-D-glucose units in which chain is formed by C1 – C4 glycosidic linkage whereas branching occurs by the formation of C1- C6 glycosidic linkage. Structure of glycogen is similar to
1) Amy lose
2) Amylopectin
3) Cellulose
4) Glucose
Answer:
2) Amylopectin

Question 10.
Which of the following polymer is stored in the liver of animals?
1)Amylose
2) Cellulose
3) Amylopectin
4) Glycogen
Answer:
4) Glycogen

Question 11.
Dinucleotide is obtained by joining two nucleotides together by phosphodiester linkage. Between which carbon atoms of pentose sugars of nucleotides are these linkage present?
1) 5′ and 3′
2) 1′ and 5′
3) 5′ and 5′
4) 3′ and 3′
Answer:
1) 5′ and 3′

Question 12.
Each polypeptide in a protein has aminoacids linked with each other in a specific sequence. This sequence of amino acids is said to be
1) primary structure of proteins.
2) secondary structure of proteins.
3) tertiary structure of proteins.
4) quaternary structure of proteins.
Answer:
1) primary structure of proteins.

Question 13.
Proteins are found to have two different types of secondary structures viz. a-helix and P-pleated sheet structure, a-helix structure of protein is stabilised by :
1) Peptide bonds
2) van der Waals forces
3) Hydrogen bonds
4) Dipole-dipole interactions
Answer:
4) Dipole-dipole interactions

Question 14.
Nucleic acids are the polymers of _______
1) Nucleosides
2) Nucleotides
3) Bases
4) Sugars
Answer:
2) Nucleotides

Question 15.
DNA and RNA contain four bases each. Which of the following bases is not present in RNA?
1) Adenine
2) Uracil
3) Thymine
4) Cytosine
Answer:
3) Thymine

Question 16.
Which of the following is a basic amino acid?
1) Serine
2) Alanine
3) Tyrosine
4) Lysine
Answer:
4) Lysine

Question 17.
The nonessential amino acid among the following is
1) lysine
2) valine
3) leucine
4) alanine
Answer:
4) alanine

Question 18.
Which of the following compounds can form a zwitter ion?
1) Aniline
2) Acetanilide
3) Benzoic acid
4) Glycine
Answer:
4) Glycine

Question 19.
Which of the following B group vitamins can be stored in our body?
1) Vitamin B₁
2) Vitamin B₂
3) Vitamin B₆
4) Vitamin B₁₂
Answer:
4) Vitamin B₁₂

Question 20.
Which one of the following vitamins is water-soluble?
1) Vitamin-B
2) Vitamin-E
3) Vitamin-K
4) Vitamin-A
Answer:
1) Vitamin-B

Question 21.
The RBC deficiency is deficiency disease of
1) Vitamin B₂
2) Vitamin B₁₂
3) Vitamin B₆
4) Vitamin B₁
Answer:
2) Vitamin B₁₂

Question 22.
Vitamin-B₁₂ contains
1) Zn(II)
2) Ca(Il)
3) Fe(II)
4) Co(II)
Answer:
4) Co(II)

Question 23.
Which of the following acids is a vitamin?
1) Aspartic acid
2) Ascorbic acid
3) Adipic acid
4) Saccharic acid
Answer:
2) Ascorbic acid

Question 24.
Which of the following bases is not present in DNA?
1) Adenine
2) Thymine
3) Cytosine
4) Uracil
Answer:
4) Uracil

Question 25.
RNA and DNA are chiral molecules, their chirality is due to
1) L-sugar component
2) Chiral bases
3) Chiral phosphate ester units
4) D-sugar component
Answer:
4) D-sugar component

Question 26.
The segment of DNA which acts as the instrumental manual for the synthesis of the protein is
1) nucleotide
2) ribose
3) gene
4) nucleoside
Answer:
3) gene

Question 27.
Which of the following hormones contains iodine?
1) Insulin
2) Testosterone
3) Adrenaline
4) Thyroxine
Answer:
4) Thyroxine

Reviewing AP Inter 2nd Year Economics Study Material Chapter 5 Population and Human Resources Development Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 5th Lesson Population and Human Resources Development Questions and Answers

Very Short Answer Questions

Question 1.
Ayushman Bharat
Answer:
Ayushman Bharat (2018) is a flagship health programme to achieve Universal Health Coverage.
It has two components

1. Health and Wellness Centres (HWCs)
2. PM-JAY (Pradhan Mantri Jan Arogya Yojana):
   All senior citizens aged 70 & above will receive health insurance regardless of their Income.

Question 2.
Distinguish between human resources and human capital.
Answer:

1. Human Resources: It refers to the total population of a country, including all individuals who can potentially contribute to economic and social activities.
2. Human Capital: It refers to the quality of people in terms of education, skills, training, and health, which increases their productivity and economic value.

Question 3.
Define sex ratio.
Answer:

• Sex ratio is the number of females per 1,000 males in a population.
• It is an important demographic indicator that reflects the gender balance and social attitudes of a society.

Question 4.
What is infant mortality rate?
Answer:
IMR (Infant Mortality Rate) is defined as the number of deaths of infants under one year of age per 1,000 live births.

Question 5.
Write any four schemes relating to India’s education sector.
Answer:
Four schemes relating to India’s education sector:

1. Sarva Shiksha Abhiyan (SSA)
2. Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
3. Samagra Shiksha Abhiyan
4. PM SHRI Schools

Question 6.
What is GDI?
Answer:
GDI (Gender Development Index) measures gender inequalities in human development by comparing the achievements of men and women in areas like health, education, and income.

Short Answer Questions

Question 1.
Explain Stage 2 of the demographic transition.
Answer:
Stage 2 of Demographic Transition:

1. Stage 2 of the demographic transition is known as the “Early Expanding Stage.”
2. In stage 2, there is an appreciable decline in death rates due to economic development, which leads to better nutrition, clean water, sanitation, and improved healthcare.
3. The birth rate remains high and death rate fall shortly resulting in a widening gap between birth and death rates.
4. This stage is also called as Population Explosion as there is a rapid increase in population. This rapid growth can nullify the benefits of economic development, preventing significant improvement in the standard of living.

Question 2.
What are the trends in India’s population density?
Answer:
Trends in India’s Population Density:

1. Population density is defined as the number of people per square kilometre of land area. It has shown a consistent and significant upward trend since independence, indicating increasing pressure on land, water, and urban infrastructure.
2. There has been a steady increase, from 117 persons/sq. km in 1951 to 382 in 2011, rising further to 445 in 2021 and estimated 464 persons/sq. km by 2025.
3. India’s population density is much higher than the global average of 62 persons per sq. km, showing a high level of population concentration.
4. There are regional variations, with Bihar (1,300) and West Bengal (1,100) having high density, Arunachal Pradesh (17) having very low density, and urban areas like Delhi exceeding 12,000 persons/sq. km due to urbanization.

Question 3.
Explain the role of education in human resource development.
Answer:
Role of Education in Human Resource Development:

1. Education acts as a primary driver of human resource development, transforming the population into a productive asset and human capital, thereby promoting economic growth.
2. It equips individuals with knowledge, skills, and critical thinking, which enhances productivity, innovation, and adaptability to new technologies.
3. Education leads to economic advancement by increasing earning capacity, providing better employment opportunities, and improving overall economic productivity.
4. It promotes social mobility and empowerment, creates a virtuous cycle of development, and helps in maximizing the demographic dividend, avoiding a demographic disaster.

Question 4.
Describe key health indicators in India.
Answer:
Key Health Indicators in India:

1. Life Expectancy: It indicates the average number of years a person is expected to live; it has increased over time due to improvements in healthcare and living conditions.

2. Infant Mortality Rate (IMR): It refers to the number of infants dying before one year of age per 1,000 live births, and it has been declining, showing better health services.

3. Birth Rate and Death Rate: These indicators show trends in population growth; birth rates are relatively high while death rates have declined, reflecting improved medical facilities.

4. Healthcare Access: Expansion of healthcare programmes and facilities has improved access to medical services, contributing to better overall health conditions.

Question 5.
Explain any four environmental impacts of growing population?
Answer:
Environmental Impacts of Growing Population:

1. Deforestation: The growing population increases demand for land for housing and infrastructure, leading to clearing of forests for timber, fuel, and space, causing loss of dense forest cover and very low per capita forest area.

2. Water Scarcity: Population growth results in over-extraction of groundwater to meet rising needs, making India a water-stressed nation with limited per capita water availability.

3. Pollution: A larger population leads to increased water pollution (industrial and domestic waste in rivers), air pollution (vehicles and industries), and solid waste generation, severely affecting environmental quality.

4. Biodiversity Loss: Expansion of human activities causes habitat destruction, threatening wildlife and increasing human-wildlife conflicts due to shrinking natural habitats.

Question 6.
What are the major schemes launched in India’s education sector?
Answer:
Major Schemes in India’s Education Sector:

1. Operation Blackboard (1987) and District Primary Education Programme (DPEP) (1994) were launched in 1980s to improve basic school infrastructure and achieve universal primary education.
2. Sarva Shiksha Abhiyan (SSA) (2001) and Rashtriya Madhyamik Shiksha Abhiyan (RMSA) focused on universal elementary education and expansion of secondary education.
3. Rashtriya Ucchar Shiksha Abhiyan (RUSA) (2013), National Digital Literacy Mission (NDLM) (2014), and SWAYAM (2017) aimed at improving higher education quality and promoting digital learning.
4. Samagra Shiksha Abhiyan (2018), PM eVidya (2020), NIPUN Bharat (2021), and PM SHRI Schools (2022) provide holistic, digital, and skill-based education aligned with NEP 2020, along with support from programmes like RTE Act, Mid-Day Meal Scheme, and Skill India.

Long Answer Questions

Question 1.
Explain the demographic trends in India.
Answer:
Demographic Trends in India:
1) Size of the Population: India is currently the most populous country in the world, with its population increasing fourfold since 1951. The year 1921 is known as the “Year of Great Divide” because it was the last year when population declined; after that, it has grown continuously. The population rose from 0.36 billion (1951) to 1.21 billion (2011) and is estimated to reach 1.46 billion by 2025, showing a massive expansion in absolute numbers.

2) Growth Rate: Even though the total population is still rising, the rate of growth has slowed down significantly. It declined from a peak of 2.16% during 1981-91 to about 0.9% in 2021-2025. This indicates that India is gradually moving toward population stabilization, mainly due to increased awareness, education, and family planning.

3) Birth and Death Rates: Both birth and death rates have declined sharply since 1951, marking a key demographic change. The birth rate fell from 39.9 to 16.5 per 1,000, while the death rate declined from 27.4 to 6.5. This reduction is due to improvements in healthcare services, sanitation, nutrition, and medical facilities, along with effective family planning programmes.

4) Population Density: The number of people living per square kilometre has increased rapidly, from 117 (1951) to 382 (2011) and is expected to reach 464 by 2025. This density is much higher than the global average, which indicates heavy pressure on land, housing, water resources, and infrastructure, especially in urban areas.

5) Sex Ratio: India’s sex ratio declined after 1951 due to gender discrimination and social biases, reaching a low of 933 females per 1,000 males in 2001. However, it has improved to 943 in 2011 and is estimated at 1,020 in 2024, reflecting better awareness, government initiatives, and changing social attitudes toward females.

6) Life Expectancy and Literacy: Life expectancy has more than doubled, from 32.1 years in 1951 to about 70.1 years in 2024, indicating improved living conditions and healthcare. Similarly, literacy has increased from 18.33% to 80.9%, showing progress in education. However, a gender gap still exists, with male literacy higher than female literacy.

7) Demographic Dividend: India is currently in the third stage of demographic transition, characterized by a large youth population. About 65% of the population is below 35 years, providing a “window of opportunity” for economic growth. If properly educated and skilled, this workforce can boost productivity; otherwise, it may lead to unemployment issues.

8) Overall Trend: India has transitioned from a stage of high birth and death rates to rapid population growth, and is now gradually moving toward stabilization. This reflects a significant structural transformation in its demographic pattern.

Question 2.
Discuss the achievements of India’s health sector and its current challenges.
Answer:
I) Achievements of India’s health sector:

1. Eradication and Control of Diseases: India has successfully eradicated Smallpox (1977), Polio (2014), and Guinea Worm Disease (2000). Diseases like Leprosy, Malaria, Tuberculosis (TB), and HIV have also been significantly controlled through public health programmes.
2. Increased Life Expectancy: Due to improvements in healthcare facilities and food security, life expectancy has increased to about 70.6 years (2024) from 66 years (2000), reflecting better overall health conditions.
3. Expansion of Healthcare Access: The Ayushman Bharat scheme (2018) provides free hospital care to about 500 million people, with over 30 crore health cards issued, improving access to medical services.
4. Improved Child Health and Nutrition: Immunization coverage (76.1 %) has helped reduce infant mortality rate to 35 per 1,000 live births. Programmes like Poshan Abhiyaan have reduced stunting among children, improving child health outcomes.

II) Challenges of India’s health sector:

1. Persistent Malnutrition: Despite improvements, 36% of children are stunted, and 19% are wasted, which negatively affects their physical and cognitive development.
2. Low Healthcare Spending: Public health expenditure is only about 1.6% of GDP, which is lower than the 2.5% target, limiting healthcare expansion and quality.
3. Significant Access Gaps: There is a large disparity between rural and urban areas, with fewer doctors and facilities in rural regions, leading to unequal healthcare access.
4. Rise of Non-Communicable Diseases (NCDs) and Infrastructure Issues: Increasing cases of diabetes and hypertension (about 25% adults), along with poor infrastructure and quality of services, create major challenges for the health sector.

Question 3.
Explain the India’s education sector with a special reference to the NEP, 2020.
Answer:
The National Education Policy (NEP) 2020 was introduced to address these gaps through structural reforms and ambitious targets.
I) The National Education Policy (NEP) 2020 – Key Features:

1. New Curricular Structure: It replaces the traditional 10+2+3 pattern with a 5 +3+3+4 pattern.
2. Universal Schooling: The policy sets a target to achieve universal schooling by 2030.
3. Increased Funding: It recommends increasing government expenditure on education to 6% of the nation’s GDP to support infrastructure and teacher training.
4. Vocational and Skill Focus: The policy emphasizes vocational training and education quality to improve employability.

II) Major Educational Schemes: To realize the goals of the NEP and improve the overall sector, the government has launched several initiatives:

1. PM SHRI Schools (2022): A project to develop 14,500 model schools that are specifically aligned with NEP goals.
2. NIPUN Bharat (2021): Aimed at ensuring every child achieves foundational literacy and numeracy by Class 3.
3. PM eVidya (2020): A digital learning initiative utilizing TV, radio, and online platforms to provide multi-mode access to education.
4. Samagra Shiksha Abhiyan (2018): Provides holistic education from the pre-primary level up to Class 12 and has significantly improved school infrastructure, such as functional toilets.

III) Achievements:

1. Literacy Rate: The overall literacy rate increased to 79.7% in 2023-24, with urban areas at 87.6% and rural areas at 76.4%.
2. Higher Education Enrolment: The Gross Enrolment Ratio (GER) in higher education reached 27.3% in 2020-21.
3. Skill Development: Initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have trained over 14.8 million youth as of June 2024.

IV) Challenges:

1. Funding Shortfall: Public expenditure on education is currently 4.6% of GDP, which is below the 6% target recommended by the NEP 2020.
2. Quality Gaps: There is a significant gap between expected years of schooling (11.7) and learning-adjusted years of schooling (6.9) due to poor teaching quality.
3. Gender and Regional Disparities: A literacy gap persists between males (85.6%) and females (73.7%), as well as between urban and rural populations.
4. Commercialisation: The rising cost of education in private institutions has made quality schooling more expensive for many.

Multiple Choice Questions

Question 1.
Which stage has high birth and death rates?
1) Stage 1
2) Stage 2
3) Stage 3
4) Stage 4
Answer:
1) Stage 1

Question 2.
India’s population in 2011 was:
1) 1.21 billion
2) 1.43 billion
3) 0.36 billion
4) 1.03 billion
Answer:
1) 1.21 billion

Question 3.
Human Capital means:
1) Number of working people
2) Amount invested in health and education
3) Economic value of knowledge skills and health
4) Population in the working age group
Answer:
3) Economic value of knowledge skills and health

Question 4.
India’s HDI category is:
1) Very high
2) High
3) Medium
4) Low
Answer:
3) Medium

Question 5.
State having the highest percentage of ST population in 2011:
1) Madhya Pradesh
2) Arunachal Pradesh
3) Mizoram
4) Sikkim
Answer:
3) Mizoram

Question 6.
Sex ratio is calculated as:
Number of males per 1000 females
2) Number of males per 100000 females
3) Number of females per 1000 males
4) Number of females per 100000 males
Answer:
3) Number of females per 1000 males

Question 7.
Health care share of GDP recommended by National Health Policy 2017.
1) 2 %
2) 2.5 %
3) 3 %
4) 3.5 %
Answer:
2) 2.5 %

Question 8.
The legal limit to marriage age for men in India is:
1) 18 years
2) 20 years
3) 21 years
4) 25 years
Answer:
3) 21 years

Question 9.
The following epidemic is totally eradicated in India:
1) Cholera
2) Chicken pox
3) Measles
4) Smallpox
Answer:
4) Smallpox

Question 10.
According to UN Population Fund (UNFPA) the correct working age of the population is:
1) 15-59 years
2) 15-60 years
3) 15-65 years
4) 15-64 years
Answer:
4) 15-64 years

Fill in the Blanks

Question 1.
The theory of Demographic Transition was first proposed by ______________ in 1929.
Answer:
Warren S Thompson

Question 2.
______________ is calied the Year of Great Divide.
Answer:
1921

Question 3.
The score of Human Capital Index ranges ______________.
Answer:
0 to 1

Question 4.
Life expectancy for India as estimated by WHO in 2024 is ______________.
Answer:
70.1 years (70 years)

Question 5.
The proportion of total workforce employed in service sector is more that the proportion employed in ______________ sector.
Answer:
agriculture

One Word Answers

Question 1.
Which stage of demographic transition is called the low stationary stage?
Answer:
4th stage

Question 2.
In which year was the countrywide simultaneous census conducted for the first time in India?
Answer:
1881

Question 3.
Which State had the highest percentage of SC population in 2011 ?
Answer:
Punjab

Question 4.
What is the estimated percentage of population under the age of 35 years in India?
Answer:
65%

Question 5.
What is the new education pattern recommended by NEP 2020?
Answer:
5 + 3 + 3 + 4

Reviewing AP Inter 2nd Year Economics Study Material Chapter 4 India as Developing Economy Global View Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 4th Lesson India as Developing Economy Global View Questions and Answers

Very Short Answer Questions

Question 1.
State the World Bank classification of the countries.
Answer:
World Bank classification of the countries based on Gross National Income (GNI) per capita.

1. Low-income countries
2. Lower-middle-income countries
3. Upper-middle-income countries
4. High-income countries

Question 2.
State the Drain Theory.
Answer:

1. The Drain Theory was proposed by Dadabhai Naoroji.
2. It states that wealth was continuously transferred from India to Britain during British rule without adequate return. This drain of wealth led to poverty and underdevelopment in India.

Question 3.
What is Demographic dividend?
Answer:

1. Demographic dividend refers to the economic growth potential arising from a higher proportion of working-age population (15-64 years) in the total population.
2. This leads to increased productivity and economic development.

Question 4.
Explain the term Gross Value Added.
Answer:

1. Gross Value Added (GVA) is an economic measure used to assess the sectoral contribution to an economy.
2. It is calculated by subtracting net taxes on products from GDP at market prices, which gives GVA at basic prices.

Question 5.
How do you describe India as an exporting economy? Give illustration.
Answer:

1. India is a leading exporter globally. It is ranking 9th in merchandise exports and accounting for about 2.61% of the world’s total exports, as per the World Trade Organization.
2. India has a strong position in global exports. It is the largest exporter of rice, while IT and software services are major export earners, and it is also a leading exporter in the pharmaceutical sector.

Question 6.
How can you say that poverty declined in India?
Answer:

1. Poverty in India has declined significantly. The percentage of people below the poverty line has reduced overtime from 57.1 % in 1951 to 37.2 % in 2004-05.
2. Further sharp decline in recent years according to NITI Aayog and World Bank estimates.

Short Answer Questions

Question 1.
Describe Indian economy during British rule.
Answer:
Indian Economy during British Rule: The Indian economy was stagnant, exploitative, and underdeveloped during British rule (1757 – 1947).

1. Ruin of Agriculture: Agriculture declined due to exploitative land systems and forced commercialisation, leading to frequent droughts and poverty.
2. Ruin of Handicrafts: Handicraft industries were ruined as they could not compete with machine- made British goods, causing unemployment.
3. Raw Material Exports: India became a colonial export economy, supplying raw materials and importing finished goods.
4. Slow Industrialisation: Industrialisation was slow and weak with little support from the British government.
5. Drain Theory: The Drain Theory explained the continuous transfer of wealth to Britain.
6. As a result, India faced low growth, high poverty, and economic backwardness at independence.

Question 2.
Explain income and wealth inequalities in India.
Answer:
Income and Wealth Inequalities in India
Despite a significant decline in poverty, income and wealth inequalities prevailed in India.

1. Income Inequality: According to NITI Aayog estimates (in 2022-23), the top 10% earn about 57% of national income, while the bottom 50% receive only 13%. It shows a wide income gap.
2. Wealth Inequality: Oxfam reported that the richest 1% own over 40% of the country’s wealth, whereas the bottom 50% hold only 3%. It indicates extreme concentration of assets.
3. Unequal Growth in Wealth: A large share of newly generated wealth goes to the rich; 73% of new wealth went to the top 1 %, while only 1 % reached the bottom half.
4. Consumption Inequality: Although consumption inequality is comparatively lower it does not reflect the true extent of income and wealth disparities, which remain high.

Question 3.
Explain Viksit Bharat 2047 vision.
Answer:
Viksit Bharat 2047 Vision: The Viksit Bharat 2047 vision is a strategic roadmap to transform India into a developed nation by 2047, marking 100 years of independence.

1. Economic Goais: The vision aims to achieve a GDP of $ 30 – 40 trillion and raise per capita income to $15,000-18,000.
2. Social Goals: Zero poverty, inclusive development, financial empowerment, and quality education and healthcare for all.
3. Environmental Goals: Net-zero carbon emissions and sustainable growth.
4. GYAN Framework: It focuses on four key sections of society – Garib (poor), Yuva (youth), Annadata (farmers), and Nari Shakti (women) – to ensure inclusive development.
5. Six Strategic Pillars: The plan emphasizes manufacturing, knowledge systems, global trade, green energy, tourism, and global development as key drivers of growth.
6. Overall Aim: The vision seeks to create a prosperous, inclusive, and environmentally sustainable India with strong global presence.

Question 4.
Describe the four phases of India’s economic growth between 1951 and 2020.
Answer:
Four Phases of India’s Economic Growth (1951-2020) India’s economic growth since 1951 can be divided into four phases based on national income and per capita income growth:

1. Phase 1 (1951 to 1980) – Hindu Rate of Growth: Economic growth was slow, with national income growing at 3.6% and per capita income at 1.4%, leading to only modest improvements in living standards.

2. Phase 2 (1980 to 2000) – Acceleration and Reform: Growth accelerated, with national income rising at 5.7% and per capita income at 3.5%, supported by policy changes and economic reforms after 1991.

3. Phase 3 (2000 to 2017)- Rapid Growth Path: The economy achieved high growth (around 7%), with faster increases in per capita income (5.4%) and strong development in infrastructure, industry, and services, making India one of the fastest-growing economies.

4. Phase 4 (2017 to 2020) – Slight Slowdown and Structural Focus: Growth slowed slightly but remained positive, with national income growth at 5.9% and per capita income at 4.5%, with emphasis on structural reforms, digital economy, and sustainable development.

Question 5.
Mention the important features of Climate change performance index.
Answer:

1. Climate Change Performance Index (CCPI): It is used to evaluate and compare the climate protection performance of countries.
2. CCPI evaluates climate performance based on Global Greenhouse Gas (GHGs) emissions, renewable energy use, and climate policy, which are the core areas of assessment.
3. Broad Coverage: The index covers 63 countries and the European Union, making it a comprehensive global assessment of climate efforts.
4. Unique Ranking Structure: A distinctive feature is that the first three ranks are not awarded, as no country is considered to be performing adequately in all categories to prevent dangerous climate change.
5. Top Performers and India’s Position: In the latest rankings, Denmark is placed 4th, while India ranks 10th with a score of 67.99, reflecting its performance in climate action.
6. Responsible Organizations: The index is published jointly by Germanwatch, New Climate Institute, and Climate Action Network International.

Question 6.
Describe India’s current global economic position.
Answer:
India’s Current Global Economic Position India’s current global economic position shows its emergence as a major economic power, though it still faces developmental challenges.

1) Major Global Economy: India is the fourth-largest economy in the world with a nominal GDP of about $4.19 trillion (2025), reflecting strong economic growth.

2) Income and Demographic Strength: It is classified as a lower-middle-income country by the World Bank, with a GNI per capita of about $2650, and is the most populous country, providing a large market and demographic dividend.

3) Strong Global Trade and Sectoral Position: India ranks 9th in merchandise exports (2.61% of world exports) and has become a hub for IT services, pharmaceuticals, and skilled professionals, along with being a leading agricultural producer.

4) Global Integration and Rankings: Since 1991 reforms, India is highly integrated into the global economy, with trade forming about 45% of GDP, and holds positions such as 10th in CCPI, 39th in Global Innovation Index, and 41st in World Competitiveness Index.

5) Despite these strengths, India faces challenges like income inequality, unemployment, and low HDI ranking, and aims to improve further through the Viksit Bharat 2047vision.

Long Answer Questions

Question 1.
Justify India being called a developing economy with reference to the progress achieved.
Answer:
India as a Developing Economy with Reference to Progress:

India is categorized as a developing economy because it has transformed from a stagnant and underdeveloped economy after British rule into a rapidly growing major economy, though it is still classified as a lower-middle income country by the World Bank.

1) Robust Economic Growth: India has achieved remarkable growth, with GNP increasing 59 times since 1950-51 and per capita income rising about 9 times. This indicates improvement in income levels and living standards, supported by a rise in domestic savings (from 9.4% to 30.2% of GDP), which provides capital for investment and development.

2) Structural Transformation: There has been a major shift in the structure of the economy. The share of agriculture declined from 53.1 % to about 14.4%, while the services sector increased to around 54.9%, becoming the main driver of growth. Industries have also diversified into sectors like automobiles, chemicals, and pharmaceuticals, showing modernization.

3) Significant Poverty Reduction: India has made substantial progress in reducing poverty. The multidimensional poverty rate declined from 55.34% to 14.96%, and people living below the international poverty line also reduced significantly. This reflects better access to income, education, and basic services.

4) Improved Demographic and Social Indicators: Indicators of human development have improved considerably. Life expectancy increased from 37 years to over 72 years, while fertility and infant mortality rates declined sharply. Literacy levels have risen, and infrastructure such as roads and foreign exchange reserves have expanded, improving overall quality of life.

5) Global Integration and Trade: India has become more integrated with the global economy, shifting from exporting raw materials to becoming a global hub for IT services and pharmaceuticals. Its trade-to-GDP ratio has increased, and it ranks among the top exporters in the world.

6) Although India has achieved significant progress in economic growth, social development, and global integration, challenges like income inequality, unemployment, and lower per capita income persist. Hence, it is still considered a developing economy progressing towards developed status.

Question 2.
Describe the trends in the growth rates of India’s national income.
Answer:
Trends in the Growth Rates of India’s National Income
1) Pre-Independence Stagnation (1860-1947): During British rule, the economy was characterized by long-term stagnation. The average per capita income growth was only 0.5%, while between 1900-01 and 1946-47, GDP grew at just 0.9% and per capita income at 0.1%, indicating negligible improvement in living standards.

2) Phase 1 (1951 to 1980) – “Hindu Rate of Growth”: In the early post-independence period, growth remained slow, with national income increasing at 3.6% and per capita income at 1.4%, resulting in modest improvement in living conditions.

3) Phase 2 (1980 to 2000) – Acceleration and Reform:
Growth accelerated to 5.7%, and per capita income rose to 3.5%, supported by policy changes and especially the economic reforms of 1991, which boosted efficiency and openness.

4) Phase 3 (2000 to 2017) – Rapid Growth Path:
The economy entered a high growth phase (7.1 %), with per capita income rising at 5.4%. India emerged as one of the fastest-growing economies, driven by expansion in infrastructure, industry, and services.

5) Phase 4 (2017 to 2020) – Slight Slowdown:
Growth slowed to 5.9%, with a decline from 6.9% to 4.2%, reflecting structural challenges and global factors, though growth remained positive.

6) COVID-19 Impact (2020-21):
The pandemic caused a sharp contraction, with GNI falling by -6.2% and per capita income by -8.9%, indicating a severe but temporary economic shock.

7) Recovery and Stabilisation (2021-2025):
The economy showed strong resilience with a V-shaped recovery, with growth rising to 9.9% in 2021-22, followed by stable growth of around 7%-7.6%, and 6.5% (2024-25 estimate).

8) Overall Trend: These trends indicate a shift from slow and stagnant growth to faster, more stable, and globally integrated growth, making India a resilient and emerging major economy.

Question 3.
Discuss the trends in sectoral distribution of India’s national income.
Answer:
The trends in the sectoral distribution of India’s national income, primarily measured through Gross Value Added (GVA) at basic prices, reflect a significant structural transformation from an agrarian economy to a service-led one.

To understand these trends, the economy of India is divided into three primary sectors:

1. Agriculture and Allied Sector: Includes crops, livestock, forestry, logging, fishing, and aquaculture.
2. Industrial Sector: Covers manufacturing, mining, quarrying, electricity, gas, water, other utilities, and construction.
3. Services Sector: Encompasses trade, hotels, transport, communication, financial services, real estate, professional services, public administration, and defense.

Historical Sectoral shift (1950-51 to 2024-25):
The following table highlights the changes in the share of each sector in the total GVA at constant prices:

1) Declining Predominance of Agriculture: At independence, agriculture was the dominant sector, contributing over 53% of GVA, but its share has steadily declined to about 14.4% by 2024-25 as the economy developed. However, nearly 45% of the workforce still depends on agriculture, indicating a dualistic economic structure with low productivity in the sector.

2) Steady Expansion of the Industrial Sector: The industrial sector grew from 16.6% in 1950- SI to 24% by 1970-71 due to emphasis on heavy industries in early Five-Year Plans. Though growth was slower later, its share increased to about 30.7% by 2024-25, with diversification from simple handicrafts to modern industries like automobiles, pharmaceuticals, and chemicals.

3) Rapid Growth of the Services Sector: The services sector has shown the most significant growth, overtaking agriculture and industry to become the dominant contributor to national income. Its share increased from 30.3% in 1950-51 to about 54.9% in 2024-25, making it as important today as agriculture was at the time of independence.

Conclusion: The data shows a clear shift where the non-agricultural sectors (industry and services) contribute about 85.2% of total GVA, indicating strong structural change. India has emerged as a global leader in IT and software services, which are major export earners and key drivers of growth. This transition from an agrarian to a service-led economy highlights India’s progress as a rapidly developing nation.

Multiple Choice Questions

Question 1.
India is categorised as
1) Undeveloped economy
2) Developed economy
3) Developing economy
4) Developing high income economy
Answer:
3) Developing economy

Question 2.
Period of the rule by East India company in India
1) 1557 – 1658
2) 1658 – 1757
3) 1757 – 1858
4) 1858 – 1947
Answer:
3) 1757 – 1858

Question 3.
Drain theory was propounded by
1) B.G. Tilak
2) Dadabhai Naoroji
3) Palme Dutt
4) Daniel Thorner
Answer:
2) Dadabhai Naoroji

Question 4.
Percentage of poor rural people in 1951
1) 59.3 %
2) 46.5 %
3) 57.1 %
4) 52.5 %
Answer:
1) 59.3 %

Question 5.
Total fertility rate as per UNFPA 2025
1) 1.7
2) 1.8
3) 2.0
4) 1.9
Answer:
4) 1.9

Question 6.
Who emphasized the importance of capital formation to break vicious circles of poverty?
1) Samuelson
2) RagnarNurkes
3) Simon Kuznets
4) AmartyaSen
Answer:
2) RagnarNurkes

Question 7.
GER target for higher education to be achieved by 2035 as per NEP 2020
1) 30 %
2) 40 %
3) 50 %
4) 55 %
Answer:
3) 50 %

Question 8.
The letter ‘A’ in GYAN refers to
1) Agriculture
2) Allied Sectors
3) Animal Husbandry
4) Annadata
Answer:
4) Annadata

Question 9.
According to international poverty line of $3 per day, India’s poverty ratio 2022-23
1) 2.3 %
2) 5.3 %
3) 6.7 %
4) 8.2 %
Answer:
2) 5.3 %

Question 10.
India’s HDI value in the HDI2023 as per HDR, 2025
1) 0.685
2) 0.665
3) 0.865
4) 0.586
Answer:
1) 0.685

Fill in the Blanks

Question 1.
The World Bank classifies the countries based on Gross National Income _____________.
Answer:
Per capita

Question 2.
The Indian industry that was first hurt by industrialization in England was _____________.
Answer:
Textiles

Question 3.
India is the _____________ largest economy in the world in 2025.
Answer:
4th

Question 4.
India’s real GDP grew at _____________ percent per year from 1900-01 to 1946-47.
Answer:
0.9

Question 5.
The services sector accounted for _____________ percent of the GVA in 2023-24 as per the advance estimates.
Answer:
54.9

One Word Answers

Question 1.
How do you describe coexistence of modern and traditional agriculture in economy?
Answer:
Dualistic economy

Question 2.
Which state has the second-highest GDP growth rate in 2024-25 at 2011-12 constant prices?
Answer:
Andhra Pradesh

Question 3.
Which Mission digitises India’s manuscript heritage?
Answer:
Gyan Bharatam Mission

Question 4.
What was the average growth rate of the Indian economy from 1951 -52 to 1979-802
Answer:
3.6 %

Question 5.
What is the economic goal of Viksit Bharat 2047 Vision in terms of GDP?
Answer:
$ 30 – 40 trillion

Reviewing AP Inter 2nd Year Economics Study Material Chapter 3 Economic Growth, Environment & Sustainable Development Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 3rd Lesson Economic Growth, Environment & Sustainable Development Questions and Answers

Very Short Answer Questions

Question 1.
Swachh Bharat Mission.
Answer:

• Swachh Bharat Mission (SBM) was launched in 2014.
• It signifies a fundamental transformation in India’s pursuit of universal sanitation access.
• Its second phase (SBM 2.0) focuses on waste management based on circular economy principles like reducing waste, recycling resources, and promoting sustainability.

Question 2.
Economic Development.
Answer:
Economic development is defined as a multi-dimensional process that encompasses both quantitative increases in output and qualitative changes in a country’s socio-economic structure.

Question 3.
State the dimensions of HDI.
Answer:
Dimensions of Human Development Index (HDI):

1. Health: Measured by life expectancy at birth (long and healthy life)
2. Education: Measured by expected years of schooling and mean years of schooling
3. Standard of Living: Measured by Gross National Income (GNI) per capita.

Question 4.
Deforestation.
Answer:
Deforestation refers to the large-scale cutting and clearing of forests, mainly for agriculture, urbanisation, and industrial use.
It leads to loss of biodiversity, soil erosion, and environmental imbalance.

Question 5.
State the definition of sustainable development given by Brundtland Report.
Answer:
Sustainable development, according to the Brundtland Report (1987), is “meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.”

Question 6.
What do you understand by biotic environment?
Answer:
Biotic environment refers to all living components of the environment, such as plants, animals, and microorganisms, which interact with each other and with the physical surroundings.

Short Answer Questions

Question 1.
Explain Physical Quality of Life Index.
Answer:
Physical Quality of Life Index (PQLI)

1. Physical Quality of Life Index (PQLI): This is a non-income measure of economic development developed by M. D. Morris in 1979.
2. It measures the quality of life based on three indicators:
   1. infant mortality rate
   2. life expectancy at age one
   3. basic literacy rate.
3. Each indicator is scaled from 0 to 100, and the average of these values gives the PQLI.
4. It reflects the fulfillment of basic human needs such as health, education, sanitation, and nutrition.
5. Limitations of PQLI: It has as it has a narrow scope. It does not measure total welfare or structural changes. It gives equal weight to all indicators.

Question 2.
Explain Gender Empowerment Measure.
Answer:
Gender Empowerment Measure (GEM): This is a composite index introduced by the UNDP in 1995. It measures gender inequality and women’s empowerment in 3 critical dimensions.

1. It measures political participation through the proportion of seats held by women in parliament.
2. It assesses economic participation and decision-making by the percentage of women in managerial and professional positions.
3. It evaluates control over economic resources through the estimated earned income of women compared to men.

Question 3.
Discuss any four consequences of Economic Development on environment.
Answer:
Consequences of Economic Development on Environment:
1) Depletion of natural resources: Economic development leads to depletion of natural resources. Because increased production and consumption require large amounts of resources like forests, minerals, and fossil fuels, which may get exhausted and affect future growth.

2) Waste generation : It results in waste generation beyond the environment’s absorptive capacity. Because industries and urban activities produce more waste than nature can handle, leading to environmental imbalance and crisis.

3) Health problems: Environmental degradation caused by development leads to health problems, such as respiratory and waterborne diseases, and increases medical expenses, thereby affecting human well-being and economic productivity.

4) Air and Water Pollution: Economic growth also causes air and water pollution. Because industrial emissions and vehicular smoke pollute the air. Also sewage and industrial effluents contaminate water, harming living organisms and ecosystems.

Question 4.
Why is real national income not a good indicator of economic development?
Answer:
National income is not a good indicator of economic development.

Reasons:

1. Ignores Population Growth: It does not consider population changes; if population grows faster than income, there is no real development.
2. Hidden Social Costs: It does not account for social and environmental costs incurred during production.
3. Income Distribution: It doesn’t give information about how income is distributed.
4. Measurement Difficulties: There are conceptual problems in accurately measuring national income (GNP), making it unreliable.

Question 5.
Explain any two types of pollution with their causes and effects.
Answer:
1) Air Pollution:
i) Causes: Air pollution is a serious problem in cities and manufacturing areas. The increase in vehicles—especially old vehicles and two-stroke engines-releases large amounts of smoke and harmful gases. Industrial emissions from factories, thermal power plants, and construction activities further pollute the air. In many areas, burning of wood and coal for cooking also adds to atmospheric pollution.

ii) Effects: Air pollution leads to the formation of acid rain, which damages forests, crops, soil, and water bodies. Certain gases like CFCs also damage the ozone layer, allowing harmful ultraviolet (UV) rays to reach the Earth. They can cause skin diseases and harm plants and animals. Overall, it affects both environmental balance and human health.

2) Water Pollution:

i) Causes: Water pollution is mainly caused by the discharge of untreated sewage, industrial waste. They contain toxic chemicals and heavy metals. Waste from mining activities go into rivers, lakes, and groundwater. These pollutants mix with water and reduce its quality.

ii) Effects: Polluted water destroys aquatic life such as fish, plants, and microorganisms, disturbing the ecosystem. For humans, it leads to waterborne diseases like cholera, typhoid, and dysentery. It also increases the cost of water purification and can result in shortage of safe drinking water. They may slow down economic and social development.

Question 6.
Write any four characteristics of developing economies.
Answer:
Characteristics of Developing Economies:

1. Low Per Capita Income: Developing countries have low per capita income. This results in a low standard of living and is a key basis for their classification.
2. Widespread Poverty: A large proportion of the population lives below the poverty line. This is due to low-income levels, slow economic growth, and large population size.
3. Predominance of Agriculture: About two-thirds of the population depends on agriculture, which often uses traditional methods and has low productivity.
4. Capital Deficiency: These countries have low savings and investment. Because most income is spent on basic consumption, leading to slow economic growth.

Long Answer Questions

Question 1.
Distinguish between the concepts of economic growth and econorpic development with suitable examples.
Answer:

Examples of Economic Growth:

1. Increase in a country’s real national income or GNP over time
2. Rise in the total production of goods and services
3. Technological progress leading to faster and higher production
4. Expansion of industries resulting in higher output.

Examples of Economic Development:

1. Reduction in poverty and improvement in living standards
2. Better healthcare and education facilities
3. More equal distribution of income
4. Structural change from agriculture-based economy to industrial economy.

Question 2.
Discuss the various environmental problems.
Answer:
1) Pollution: Pollution is one of the most serious environmental problems caused by rapid urbanization and industrialization.

• Air pollution arises from vehicular emissions, industries, thermal power plants, construction activities, and burning of fuels, leading to acid rain and ozone layer depletion.
• Water pollution is caused by sewage, industrial chemicals, and mining waste, which contaminate water bodies, harm aquatic life, and cause diseases.
• Noise pollution from traffic, industries, and public activities leads to stress, hearing loss, and reduced concentration.
• Improper disposal of solid and hazardous waste pollutes land, air, and water, spreading communicable diseases.

2) Deforestation: Deforestation involves large-scale clearing of forests for agriculture, industries, and urban expansion. It destroys plant and animal habitats, reduces biodiversity, increases temperature, and leads to floods and soil erosion. It also contributes to global warming by increasing carbon dioxide levels.

3) Soil Degradation: Soil degradation occurs due to water and wind erosion, deforestation, overgrazing, and excessive use of chemicals in agriculture. In irrigated areas, it may lead to salinization. This reduces soil fertility and productivity, affecting agricultural output and food security.

4) Loss of Biodiversity: Economic activities like mining, industrialization, and agricultural expansion lead to destruction of natural habitats. This results in extinction of plant and animal species and loss of genetic diversity, which is essential for ecological balance and future resources.

5) Global Warming and Climate Change: Global warming is caused by increased greenhouse gases, leading to a rise in Earth’s temperature. This results in melting glaciers, rising sea levels, and extreme weather conditions. Climate change further causes irregular rainfall, coastal erosion, and spread of diseases like malaria, affecting both environment and human life.

6) Depletion of Natural Resources: Rapid population growth and industrialization have increased the demand for natural resources beyond their availability. This leads to overexploitation of both renewable and non-renewable resources, threatening sustainability and future economic development.

Question 3.
Explain HDI and its measurement.
Answer:
Human Development Index (HDI) is a composite index developed by the United Nations Development Programme (UNDP). It is used to measure the level of human development by considering both economic and social factors, not just income.

I) The HDI focuses on three essential dimensions of human life:

1. Health: Measured by life expectancy at birth (long and healthy life)
2. Education: Measured by expected years of schooling (18 years); mean years of schooling (15 years); Adult literacy rate, enrollment ratio in primary and secondary schools.
3. Standard of Living: Measured by Gross National Income (GNI) per capita (75000 US dollars).

Measurement and Calculation of HDI:

1. Normalization: For each dimension, minimum and maximum values (goalposts) are fixed to standardize data.
2. Dimension Index: Each dimension is converted into an index using the formula:
   Dimension Index = \(\frac{\text { Actual Value – Minimum Value }}{\text { Maximum Value – Minimum Value }}\)
3. Final HDI Value: The overall HDI is calculated as the geometric mean of the three dimension indices (health, education, and income).
4. Index Range: The HDI value lies between 0 and 1, where a higher value indicates higher human development.

II) Classification of Countries: Based on their HDI values, countries are typically grouped into four categories to reflect their level of development:

1. Very High Human Development: 0.800 and above.
2. High Human Development: 0.700 to 0.799.
3. Medium Human Development: 0.550 to 0.699.
4. Low Human Development: Below 0.5$0.

III) Limitations of HDI:

1. The weighting scheme is arbitrary, as equal importance is given to all dimensions, which may not reflect reality.
2. It does not consider social and political freedoms, which are important aspects of development.
3. It ignores gender inequalities, failing to reflect differences between men and women.
4. To overcome these limitations, additional indices like the Gender-related Development Index (GDI) and Gender Empowerment Measure (GEM) have been introduced.

Multiple Choice Questions

Question 1.
Economic growth means
1) Increase in a country’s real national output
2) No change in a country’s real national output
3) Quantitative and Qualitative changes in the economy
4) This issue relates to the Developing countries
Answer:
1) Increase in a country’s real national output

Question 2.
Maximum value of life expectancy at birth indicator in HDI
1) 100 years
2) 85 years
3) 75 years
4) 60 years
Answer:
2) 85 years

Question 3.
PQLI as an indicator of economic development was developed by
1) Kindleberger
2) M.D. Morris
3) R.W. Richardson
4) Paul P. Streeten
Answer:
2) M.D. Morris

Question 4.
When was the term‘Sustainable Development’first defined?
1) 1980
2) 1987
3)2000
4) 2015
Answer:
2) 1987

Question 5.
What are the serial numbers of SDGs included in the aspect prosperity?
1) 1, 2, 3, 4, 5
2) 6, 12, 13, 14, 15
3) 7, 8, 9, 10, 11
4) 13, 14, 15, 16, 17
Answer:
3) 7, 8, 9, 10, 11

Question 6.
The target year to achieve sustainable development goals (SDGs) is
1) 2030
2) 2035
3) 2040
4) 2047
Answer:
1) 2030

Question 7.
One of the key wildlife conservation programmes launched by India
1) Project Lion
2) Project Tiger
3) Project Deer
4) Project Camel
Answer:
2) Project Tiger

Question 8.
The term degrowth refers to
1) Malnutrition among children
2) Measurement of real income
3) Reduction of consumption
4) Regional imbalances
Answer:
3) Reduction of consumption

Question 9.
India’s GNI per capita for 2024 as per World Development Report
1) $ 2250
2) $ 2650
3) $ 2850
4) $ 2930
Answer:
2) $ 2650

Question 10.
Zero Hunger is
1) SDG 1
2) SDG 2
3) SDG 3
4) SDG 17
Answer:
2) SDG 2

Fill in the Blanks

Question 1.
Countries with HDI value within the range of 0.550 – 0.699 are classified as ___________ Human Development Group.
Answer:
Medium

Question 2.
Sustainable Development means meeting the needs of the present without ___________ the needs of future generation.
Answer:
Compromising

Question 3.
The agreement reached at CoP21 is popularly known as ___________.
Answer:
Paris agreement

Question 4.
A gradual increase in the average temperature of the earth’s lower atmosphere is called ___________.
Answer:
Global warming

Question 5.
LiFE stands for ___________.
Answer:
Lifestyle for environment

One Word Answers

Question 1.
What is the HDI value range of Very High Human Development group according to HDR 2010?
Answer:
0.800 and above

Question 2.
What is the percentage of adaptation-related spending in GDP in 2021 -22?
Answer:
5.6

Question 3.
What is the unemployment rate in India in June 2025 as per the Ministry of Statistics and Programme Implementation (MoSPI)?
Answer:
5.6%

Question 4.
Which programme was launched in India in June 2024 on World Environment Day to promote pro-environmental activities?
Answer:
Ek Ped Maa ke Naam

Question 5.
What is the number of Sustainable Development Goals (SDGs)?
Answer:
17

Reviewing AP Inter 2nd Year Economics Study Material Chapter 2 Dispersion, Correlation and Index Numbers Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 2nd Lesson Dispersion, Correlation and Index Numbers Questions and Answers

Very Short Answer Questions

Question 1.
Write the formula for coefficient of variation (CV).
Answer:
Formula for the Coefficient of Variation is
CV = \(\frac{\text { SD }}{\text { Mean }}\) × 100

CV is the ratio of the standard deviation(SD) to the mean, expressed in percentage.

Question 2.
Define variance.
Answer:
Variance (σ²) is defined as the average of the squared deviations from the mean.

Variance is a statistical measure of dispersion that shows how far the values in a dataset are spread from the mean.

Question 3.
What is rank correlation?
Answer:
Rank correlation is a method of measuring the relationship between variables by using their ranks instead of actual values.

It is used when data is in the form of qualitative characteristics like beauty, honesty.

Question 4.
The marks obtained by 10 students are: 12, 18, 25, 30, 32, 28, 20, 15, 40, 35. Find the Range and the Coefficient of Range.
Answer:
Given data:12, 18, 25, 30, 32, 28, 20, 15, 40, 35.
Largest value (L) = 40,
Smallest value (S) = 12 ;
(i) Range = L – S
= 40 – 12 = 28

(ii) Coefficient of Range = \(\frac{L-S}{L+S}\)
= \(\frac{40-12}{40+12}\)
= \(\frac{28}{52}\) = 0.538

Question 5.
Find Mean Deviation for dataset: 3, 6, 9
Answer:
Given dataset: 3, 6, 9
Step 1: Mean = \(\frac{3+6+9}{3}\)
= \(\frac{18}{3}\) = 6

Step 2: Deviations from Mean (ignoring signs):
|3 – 6| = 3 |6 – 6|
= 0 |9 – 6| = 3

Step 3: Mean Deviation MD = \(\frac{\sum|\mathrm{D}|}{\mathrm{n} \mid}\)
= \(\frac{3+0+3}{3}=\frac{6}{3}\) = 2.

Question 6.
Base year price of rice is Rs.45 per kg. Current year price is Rs.50. Find simple price index. (Base year = 100)
Answer:
Given Current year price P₁ = 50,
Base year price P₀ = 45
∴ Price Index = \(\frac{P_1}{P_0}\) × 100
= \(\frac{50}{45}\) × 100 = 111.11

Short Answer Questions

Question 1.
Distinguish between absolute measures and relative measures of dispersion with examples.
Answer:

Question 2.
From the following data, calculate the Quartile deviation.

Answer:
The Cumulative frequency table for the given data is as follows:

1) Calculating the First Quartile (Q₁)
Total frequency N = 50,
Position of Q₁ : \(\frac{N}{4}=\frac{50}{4}\) = 12.5
Here Q₁ Class = Class containing 12.5th item
The value in the cf column where it is just above 12.5 is 20.
It belongs to class 50-100.
∴ Q₁ Class is 50-100.
Here L = 50,
i = 100-50 = 50,
f = 5,
cf = 5 (cf of the above class).

Formula: Q₁ = L + \(\left(\frac{\frac{\mathrm{N}}{4}-\mathrm{cf}}{\mathrm{f}}\right)\) × i
= 50 + \(\left(\frac{12.5-5}{15}\right)\) × 50
= 50 + \(\left(\frac{7.5}{15}\right)\) × 50
= 50 + 25 = 75

2) Calculating the Third Quartile (Q₃)
Total frequency N = 50,
Position of Q₃ : \(\frac{3 \mathrm{~N}}{4}=\frac{3 \times 50}{4}\) = 37.5
Q₃ Class = Class containing 37.5th item
The value in the cf column where it is just above 37.5 is 40.
It belongs to class 100-150
∴ Q₃ Class is 100-150.
Hence L = 100,
i = 150 – 100 = 50,
f = 20,
cf = 20 (cf of the before class)

Formula:
Q₃ = L + \(\left(\frac{\frac{\mathrm{N}}{4}-\mathrm{cf}}{\mathrm{f}}\right)\) × i
= 100 + \(\left(\frac{37.5-20}{20}\right)\) × 50
= 100 + \(\left(\frac{17.5}{20}\right)\) × 50
= 100 + 43.75 = 143.75

3) Calculating Quartile Deviation (Q.D.)
Formula: QD = \(\frac{Q_3-Q_1}{2}\)
= \(\frac{143.75-75}{2}\)
= \(\frac{68.75}{2}\) = 34.375
The quartile Deviation for the given data is 34.375.

Question 3.
Calculate the standard deviation of the following data.

Answer:
Calculating the Mean (\(\overline{\mathrm{X}}\))
∑X = 10 + 16 + 10 + 16 + 10 + 10 + 16 + 16 = 104,
Number of observations N = 8
Mean (\(\overline{\mathrm{X}}\)) = \(\frac{\Sigma X}{N}\)
= \(\frac{104}{8}\) = 13
Finding Deviations at d = X – \(\overline{\mathrm{X}}\) and their squares d²

Standard Deviation σ = \(\sqrt{\frac{\sum(X-\bar{X})^2}{n}}\)
= \(\sqrt{\frac{\sum d^2}{n}}\)
= \(\sqrt{\frac{72}{8}}\)
= √9 = 3
The standard deviation for the given data is 3.

Question 4.
Define correlation. What are the properties of correlation?
Answer:
Correlation measures the degree and direction of the relationship between two or more variables.

It shows how variables move in relation to each other. It may be positive, negative, or zero.

Properties of Correlation:

1. Range of Values: The value of the correlation coefficient (r) always lies between – 1 and + 1
2. Direction and Strength: A value close to +1 indicates strong positive relationship, close to – 1 indicates strong negative relationship, and 0 indicates no relationship.
3. Association vs. Causation: Correlation measures only association, but not cause-and-effect relationship.
4. Unit-Free Measurement: The coefficient of correlation has not units. Hence, it is unit-free.
5. Invariance: The coefficient remains unaffected by change in origin and scale.

Question 5.
What are the uses of Index numbers?
Answer:
Uses of Index Numbers:
1) An Aid to Framing Policies: Index numbers are used to guide economic policies, such as fixing wages and dearness allowance based on the Consumer Price Index (CPI).
They also help in determining policies related to the volume of trade and price fixation.

2) To Find Trends: They measure changes overtime, helping to study general trends in economic activity and are useful for forecasting future conditions.

3) To Assess the Purchasing Power of Money : Index numbers (especially CPI) help in calculating real wages and show whether the purchasing power of money has increased or decreased.

4) For Adjusting National Income: They are used for deflating national income (converting current prices into constant prices) to get a more accurate picture of economic growth.

Question 6.
Distinguish between Consumer Price Index (CPI) and Wholesale Price Index (WPI).
Answer:

Long Answer Questions

Question 1.
What is correlation? What are the measures of correlation?
Answer:
Correlation is a statistical tool used to measure the degree and direction of the relationship between two or more variables. It explains how one variable changes in relation to another.
Ex: An increase in income leads to an increase in expenditure.

Correlation can be of three types:

• Positive correlation: Both variables move in the same direction (e.g., income and expenditure).
• Negative correlation: Variables move in opposite directions (e.g., price and demand).
• Zero correlation: No relationship exists between variables.

3 Measures of Correlation:

1) Scatter Diagram (or Dot Diagram):
This is a simple and visual method of studying correlation.

In this method, each pair of values is plotted as a point on a graph.

This method is easy to understand but does not give a precise numerical value of correlation.

• lf the points are closely clustered around an upward sloping line, it indicates strong positive correlation.
• lf they slope downward, it indicates negative correlation.
• lf the points are widely scattered without any definite pattern, it shows no correlation.

2) Karl Pearson’s Coefficient of Correlation:
This is the most widely used and accurate numerical method for measuring correlation between two variables that have a linear relationship.

This method provides a precise and reliable measure, mostly suitable for quantitative data.

• lt is the ratio of covariance between variables to the product of their standard deviations.
• The value of the coefficient lies between – 1 and + 1.
• A value of +1 indicates perfect positive correlation.

– 1 indicates perfect negative correlation, and 0 indicates no correlation.

3) Spearman’s Rank Correlation:
It is used when the data is qualitative or cannot be measured numerically, such as intelligence, beauty, or honesty.

It is particularly useful when exact measurements are not available but ranking is possible.

• Instead of actual values, ranks are assigned to-the observations.
• The differences between ranks of paired items are calculated and used to find the correlation coefficient.

Question 2.
Calculate the Range, Coefficient of Range, and Quartile Deviation from the following data.

Answer:
1) Calculation of Range and Coefficient of Range:
In this continuous series,
upper limit of the largest class (50 – 60) is L = 60
lower limit of the lower class (10 – 20) is S = 10

(i) Range = L- S
= 60 – 10 = 50

(ii) Coefficient of Range = \(\frac{\mathrm{L}-\mathrm{S}}{\mathrm{~L}+\mathrm{S}}\)
= \(\frac{60-10}{60+10}\)
= \(\frac{50}{70}\) = 0.714

2) Calculation of Quartile Deviation (Q.D)

Step 1:
Finding the First Quartile (Q₁).
Total frequency N = 42,
Position of Q₁ : \(\frac{N}{4}=\frac{42}{4}\) = 10.5
Q₁ Class = Class containing 10.5th item
The value in the cf column where it is just above 10.5 is 18. It belongs to class 20-30.
∴ Q₁ Class is 20 – 30.
Here L = 20,
i = 30 – 20=10,
f = 10,
cf = 8 (cf of the before Q₁ class).
Formula:
Q₁ = L + \(\left(\frac{\frac{N}{4}-c f}{f}\right)\) × i
= 20 + \(\left(\frac{10.5-8}{10}\right)\) × 10
= 20 + 2.5 = 22.5

Step 2:
Finding the Quartile (Q₃).
Total frequency N = 42,
Position of Q₃ : \(\frac{3 \mathrm{~N}}{4}=\frac{3 \times 42}{4}\) = 31.5
Q₃ Class = Class containing 31.5th item
The value in the cf column where it is just above 31.5 is 38.
It belongs to class 40 – 50.
∴ Q₃ Class is 40 – 50.
Here L = 40,
i = 50 – 40 = 10,
f = 8,
cf = 30 (cf of the before Q₃ class).
Q₃ = L + \(\left(\frac{\frac{3 \mathrm{~N}}{4}-\mathrm{cf}}{\mathrm{f}}\right)\) × i
= 40 + \(\left(\frac{31.5-30}{8}\right)\) × 10
= 40 + 1.875 = 41.875

Step 3:
Quartile Deviation QD = \(\frac{Q_3-Q_1}{2}\)
= \(\frac{41.875-22.5}{2}\)
= \(\frac{19.375}{2}\) = 9.6875.

Question 3.
The following data relate to prices and quantities of certain commodities in the base year and current year. Construct the Weighted Aggregative Price Index using Laspeyres’ and Paasche’s methods.

Weighted Aggregative Price Index

Answer:
Table showing the required products (pq) for both formula based on the prices (p) and quantities (q) for the base year (0) and current year (1)

1) Laspeyres Method:
This method uses base period quantities (q₀) as weights.
From the table we have ∑ p₁q₀ = 1669,
∑ p₀q₀ = 1345,

Formula: Weighted aggressive Price Index
P₀₁ = \(\frac{\sum \mathrm{p}_1 \mathrm{q}_0}{\sum \mathrm{p}_0 \mathrm{q}_0}\) × 100
= \(\frac{1669}{1345}\) × 100 = 124.1
Laspeyres’ index: 124.1

2) Paasche’s Method:
This method uses current year quantities (q₁) as weights.
From the table, we have ∑ p₁q₁ = 1133,
∑ p₀q₁ = 910
Formula:
P₀₁ = \(\frac{\sum p_1 q_1}{\sum p_0 q_1}\) × 100
= \(\frac{1133}{910}\) × 100
Paasche’s index: 124.5

An Excellent Cricket Illustration-2

Consider the scores of Virat and Kohli in Five ODI Matches of Worldcup.

A. Measures of Dispersion:
1. Range: Virat’s Range = 169 – 27 = 142;
Rohit’s Range = 71 – 48 = 23
Interpretation : Rohit is more consistent because his range (23) is much smaller than Virat’s range (142).

2. Standard Deviation (or Variance)
Virat has a high standard deviation because of scores like 27 and 169.
Rohit has a low standard deviation because most scores are close to each other.
So, Rohit has low dispersion variation/ and hence his performance is more stable and dependable

One-Line Summary

Dispersion measures tell us how consistently one scores, but not how much a batsman scores.

B. Measures of Correlation: Consider the scores of Virat and Rohit in 3 ODI Series.

Interpretation for Series 1 : Positive Correlation

• When Virat scores more, Rohit also scores more and vice-versa.
• Cricket lnsight: The two batsmen are contributing well combinedly (both together).
• Conclusion: There is a strong positive correlation between their performances.

Interpretation for Series 2: Negative Correlation

• Interpretation: As Virat’s score decreases, Rohit’s score increases.
• When one performs poor, the other performs well.
• Cricket lnsight: The two batsmen are not contributing well together.

Interpretation for Series 3 : Zero Correlation

• Virat’s scores show no clear pattern with Rohit’s scores.
• One batsman’s performance does not help predict the other’s. They score independently.
• Conclusion: There is no correlation between their performances.

Final Comparison:

One-Sentence Summary

• Measures of Central Tendency describe the centre of performance.
• Measures of Dispersion describe the consistency of performance.
• Measures of Correlation describe the relationship between the performances of two batsmen.

Multiple Choice Questions

Question 1.
Measures of dispersion indicate
1) The central value of data
2)The degree of scatter of values around a central value
3) The average of values
4) The relation between two variables
Answer:
2)The degree of scatter of values around a central value

Question 2.
The difference between the largest and the smallest value in a data set is called:
1) Mean deviation
2) Variance
3) Standard deviation
4) Range
Answer:
4) Range

Question 3.
The interquartile range is equal to:
1) Q₃ – Q₁
2) Q₂ – Q₁
3) Q₄ – Q₁
4) Q₃ — Q₂
Answer:
1) Q₃ – Q₁

Question 4.
Which of the following measures of dispersion is on all observations?
1) Range
2) Quartile deviation
3) Standard deviation
4) Co-efficient of range
Answer:
3) Standard deviation

Question 5.
The value of the correlation coefficient lies between
1) 0 and 1
2) – 1 and + 1
3) 0 and ∝
4) 1 and ∝
Answer:
2) – 1 and + 1

Question 6.
If variance is 25, standard deviation is:
1) 625
2) 125
3) 5
4) 15
Answer:
3) 5

Question 7.
Which measure of dispersion is most affected by extreme values?
1) Range
2) Quartile deviation
3) Mean deviation
4) Standard deviation
Answer:
1) Range

Question 8.
If Mean = 30 and Standard Deviation = 6, then CV = ?
1) 10 %
2) 15 %
3) 18 %
4) 20 %
Answer:
4) 20 %

Question 9.
Correlation measures.
1) The average of a data set
2) The degree and direction of relationship between two variables
3) The difference between maximum and minimum values
4) The spread of one set of values
Answer:
2) The degree and direction of relationship between two variables

Question 10.
The price of a commodity was Rs. 50 in the base year and Rs. 60 in the current year. The simple price index number (base year = 100) is: [3
1) 140
2) 130
3) 120
4) 110
Answer:
3) 120

Fill in the Blanks

Question 1.
Averages show the center of data, but dispersion shows of ____________ the data.
Answer:
the spread

Question 2.
____________ measure of dispersion is called semi-inter quartile range.
Answer:
Quartile Deviation (QD)

Question 3.
The numerical value that expresses size or direction or proportion of a relationship is called ____________.
Answer:
Coefficient.

Question 4.
The square of Standard Deviation is equal to ____________.
Answer:
variance

Question 5.
In Laspeyres’ method of Index Numbers, ____________ year quantities are taken as weights.
Answer:
Base year

One Word Answers

Question 1.
Which quartile divides the data set into two equal parts?
Answer:
Second quartile (Q₂) (or) Median divides the data set into two equal parts.

Question 2.
Which measure of dispersion depends on the unit of measurement?
Answer:
Absolute measure of dispersion depends on the unit of measurement.

Question 3.
What is the relative measure of dispersion expressed as a percentage of the standard deviation to the mean?
Answer:
Coefficient of Variation (CV)

Question 4.
What statistical tool measures the relptive change in a variable over time in percentages?
Answer:
Index Number

Question 5.
Which weighted aggregate index is the geometric mean of Laspeyr’s and Paasche’s index numbers?
Answer:
Fisher’s ideal index

Reviewing AP Inter 2nd Year Economics Study Material Chapter 1 Descriptive Statistics Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Economics 1st Lesson Descriptive Statistics Questions and Answers

Very Short Answer Questions

Question 1.
The weekly wage of a worker in a month is: Rs. 500, Rs. 600, Rs. 400, Rs. 500. What is the mean weekly wage?
Answer:
1) Sum of wages ∑X = 500 + 600 + 400 + 500 = 2000 ;
Number of weeks (n) = 4

2) Mean \(\bar{X}=\frac{\Sigma X}{n}\)
= \(\frac{2000}{4}\) = 500
∴ Mean weekly wage = Rs. 500

Question 2.
Write the two properties of Arithmetic Mean.
Answer:

1. The sum of the deviations of all observations from the mean is always zero. ∑ (X – \(\bar{X}\)) = 0
2. Arithmetic Mean is influenced by extreme values in the data.

Question 3.
Differentiate between population data and sample data.
Answer:

Question 4.
State difference between Less than Ogive and More than Ogive curves.
Answer:

Question 5.
Mention the parts of table in statistics.
Answer:
Parts of the Data table :

1. Table Number
2. Title
3. Column Headings
4. Row Headings (Stubs)
5. Body of the Table
6. Unit of Measurement
7. Source
8. Note

Question 6.
Calculate the median of Marks: 28, 15, 34, 20, 37, 56, 34, 68, 71, 62
Answer:
Ascending order of the given data: 15, 20, 28, 34, 34, 37, 56, 62, 68, 71.
Here, Number of observations n = 10 (even)
Median = \(\frac { Sum of the two middle values }{2}\)
= \(\frac{34+37}{2}=\frac{71}{2}\) = 35.5

Short Answer Questions

Question 1.
Explain the importance of statistics in Economics.
Answer:
Role of Statistics in Economics:

1. Data in Precise form: Statistics helps an economist to present economic facts in a precise numerical form (like percentages, averages). This makes economic facts clear, precise, and more convincing instead of vague statements.
2. Better understanding: Statistics helps in analysing and studying issues like poverty, unemployment, and inflation by providing data about their size and causes.
   It makes analysis more meaningful and better understanding.
3. Policy Making : Governments and economists use statistical data to make plans, frame policies, and take decisions to solve economic problems.
4. Measurement tools : Statistics is used to measure and calculate important indicators such as GDP, national income, and inflation, which show the condition of an economy.

Question 2.
Explain clearly any four types of data presentation with suitable examples.
Answer:
Types of Data Presentation:
1) Textual Presentation: Here, data are presented in the form of words and sentences.
Ex: Andhra pradesh state consists of 12 Coastal Andhra districts, 9 Rayalaseema districts and 7 Uttarandhra districts.

2) Tabular Presentation: Here, data are arranged in a table with rows and columns.
Ex: In Jr. IPE, the marks of 3 students in Maths, Economics and Commerce are tabulated here.

The word data is used in both singular and plural form.

3) Bar Diagram: Here, data are shown using rectangular bars of respective heights.
Ex: Temperature in Vijayawada

These values are presented here in bar diagram.

4) Pie Diagram: Here, data are presented as proportional slices or sectors of a circle of 360°.
The marks of an MEC Student in Jr. IPE are as follows:
Skt – 95,
Eng- 85,
Maths -100,
Economics – 90,
Commerce – 80.
These values are presented here in a pie diagram.

Question 3.
Differentiate between discrete series and continuous series in grouped data.
Answer:
Difference between Discrete Series and Continuous Series:

Question 4.
What is the criteria for an ideal measure of central tendency?
Answer:
An ideal measure of central tendency should meet the following six criteria:

1. Clearly Defined: It should be properly and clear (unambiguously) defined.
2. Easy to Comprehend: It should be easy for a person to understand.
3. Simple to Compute: The calculation process should be straightforward.
4. Comprehensive: It should be based on all observations in the data set.
5. Mathematical Properties: It should possess certain desirable mathematical properties.
6. Stability: It should be least affected by the presence of extreme observations (outliers).

Question 5.
Calculate the Arithmetic Mean of wages for the following data using direct method.

Answer:
Let X = Value of variables (Weekly wage),
f = Frequency of each value (No. of workers).

∴ AM is \(\bar{X}=\frac{\Sigma f X}{\Sigma f}\)
= \(\frac{25,500}{60}\) = 425

Airthmetic Mean of wages = 425

Question 6.
Briefly explain the positional averages like Median, Quartile, Decile and Percentile.
Answer:
Positional averages (partition values) are measures of central tendency that divide a dataset into equal parts based on the position of observations after arranging the data in order (ascending or descending). They help us understand how the data is spread.

1) Median: Median divides the data into two equal parts:

• 50% of values (observations) lie below the median.
• 50% of values lie above the median.

2) Quartiles (Q₁, Q₂, Q₃): Quartiles divide the data into four equal parts.

• Q₁ (First Quartile): 25% of values lie below Q₁
• Q₂ (Second Quartile): 50% of values lie below Q₂
• Q₃ (Third Quartile): 75% of values lie below Q₃

3) Deciles (D₁ to D₉): Deciles divide the data into ten equal parts.

• Each part represents 10% of the data.
• Ex: D₆ : 60% of values lies below D₆

4) Percentiles (P₁ to P₉₉): Percentiles divide the data into 100 equal parts.

• Each part represents 1 % of the data.
• Ex: P₉₀ : 90% of values lies below P₉₀

Note: Results in IIT-JEE, EAPCET are given in Percentiles.
Important Relation: Q₂ = D₅ = P₅₀ = Median.
Thus 2nd quartile (Q₂), 5th decile (D₅), 50th percentile (P₅₀) represent the same position in the data.

Long Answer Questions

Question 1.
Find the Mean and Median weight of the following distribution.

Answer:
1) Finding Mean:

Mean \(\overline{\mathrm{X}}=\frac{\Sigma \mathrm{mf}}{\Sigma \mathrm{f}}\)
= \(\frac{7430}{100}\) = 74.3

∴ Mean weight = 74.3 kg

2) Finding Median: The Cumulative frequency table for the given data is as follows:

Total frequency N = 100
Median Position = \(\frac{N}{2}\)
= \(\frac{100}{2}\) = 50
Here Median Class = Class containing 50th item
The value in the cf column which is just above 50 is 58.
It belongs to class 70-80.
∴ Median class is 70-80.
Here L = 70,
h = 80 – 70 = 10,
f = 25,
cf = 33 (cf of before class)
Median = L + \(\left[\frac{\frac{\mathrm{N}}{2}-\mathrm{cf}}{\mathrm{f}}\right]\) × h
= 70 + \(\left[\frac{50-33}{25}\right]\) × 10
= 70 + \(\frac{17}{25}\) × 10
= 70 + (0.68 × 10)
= 70 + 6.8 = 76.8 kg

Question 2.
Find the Median and Mode of weekly wage of workers.

Answer:
1) Finding Median:
The Cumulative frequency table for the given data is as follows:

Total frequency N = 80;
Median position \(\frac{N}{2}\) = \(\frac{80}{2}\) = 40
Here, Median Class = Class containing 40th item
The value in the cf column which is exactly equal to 40 is 40.
It belongs to class 15-20. Median class is 15-20.
Here L = 15,
h = 20 – 15 = 5,
f = 20,
cf = 20 (cf of before class)
Median (M) = L + \(\left[\frac{\frac{\mathrm{N}}{2}-\mathrm{cf}}{\mathrm{f}}\right]\) × h
= 15 + \(\left[\frac{40-20}{20}\right]\) × 5
= 15 + \(\frac{20}{20}\) × 5
= 15 + 5 = 20
The median weekly wage is 20.
In thousands (’00 Rs.) it is equal to Rs. 2,000.

2) Finding Mode:
We know Modal Class = Class with the largest frequency.
The highest frequency in the given table is 22.
So the modal class is 20-25.
Here, L = 20 (Lower limit of modal class);
f₁ = 22 (Frequency of modal class)
f₀ = 20 (Frequency of before modal class);
f₂ = 14 (Frequency of after modal class),

∴ Median (Z) = L + \(\left(\frac{\mathrm{f}_1-\mathrm{f}_0}{2 \mathrm{f}_1-\mathrm{f}_0-\mathrm{f}_2}\right)\) × h
= 20 + \(\left[\frac{22-20}{2(22)-20-14}\right]\) × 5
= 20 + \(\left[\frac{2}{44-34}\right]\) × 5
= 20 + \(\left(\frac{2}{10}\right)\) × 5
= 20 + 1 = 21
The modal weekly wage is 21. In thousands(’00 Rs.) it is equal to Rs. 2,100.

Question 3.
Define Mean. Explain different methods of calculating arithmetic mean for ungrouped and grouped data.
Answer:
Mean is defined as the average of a set of observations.
Arithmetic Mean (\(\overline{\mathrm{X}}\)) is defined as the sum of ail observations divided by the total number of observations.

A) Arithmetic Mean (AM) for Ungrouped Data:

1) Direct Method:
Formula: AM is \(\bar{X}=\frac{\sum X}{n}\)
Where, X = Individual observations,
∑X = Sum of all observations,
n= Total number of observations

2) Assumed Mean Method:
Any particular value can be taken as assumed mean (A),
and deviations (d = X – A) are taken from it.
Formula: \(\overline{\mathrm{X}}\) = A + \(\frac{\Sigma \mathrm{d}}{\mathrm{n}}\)
Where, A = Assumed mean;
X = Individual observations;
n = Total number of observations,
d = X – A = Deviation of assumed mean

3) Step Deviation Method:
Here the deviations are divided by a common factor (c) to avoid large numerical figures.
Formula: \(\overline{\mathrm{X}}\) = A + \(\frac{\Sigma \mathrm{d}^{\prime}}{\mathrm{n}}\) × c
(where d’ = \(\frac{X-A}{c}\))
Where A = Assumed Mean,
∑d’ = Sum of step deviations,
n = Number of observations,
c = common factor (class size)

B) Arithmetic Mean (AM) for grouped Data:

I) Discrete series : In a discrete series, each observatio (X) is associated with a frequency (f)

1) Direct Method: Formula: \(\bar{X}=\frac{\Sigma f X}{\Sigma f}\)

2) Assumed Mean Method: Formula: \(\overline{\mathrm{X}}=\mathrm{A}+\frac{\Sigma \mathrm{fd}}{\Sigma \mathrm{f}}\)

3) Step Deviation Method: Formula: \(\overline{\mathrm{X}}=\mathrm{A}+\frac{\Sigma \mathrm{fd}^{\prime}}{\Sigma \mathrm{f}} \times \mathrm{c}\)

Here d = \(\frac{d}{c}\) (or)
d’ = \(\frac{(\mathrm{X}-\mathrm{A})}{\mathrm{c}}\) and
c = common factor (class size).

II) Continuous Series (frequency distribution): Here the data is divided into class intervals. Here the midpoint (m) of each class interval is used to represent the values in that range.

1) Direct Method: \(\bar{X}=\frac{\Sigma f m}{\Sigma f}\)

2) Assumed Mean Method: \(\overline{\mathrm{X}}=\mathrm{A}+\frac{\Sigma \mathrm{fd}}{\Sigma \mathrm{f}}\) (where d = m – A)

3) Step Deviation Method: \(\overline{\mathrm{X}}=\mathrm{A}+\frac{\Sigma \mathrm{fd}^{\prime}}{\Sigma \mathrm{f}} \times \mathrm{c}\) (where d’ = \(\frac{\mathrm{m}-\mathrm{A}}{\mathrm{c}}\)).

An Excellent Cricket Illustration – 1

Consider the scores of Virat and Rohit in Five ODI Matches of Worldcup.

Who is the Better Performer? Virat or Rohit; In what way he is better?

1) Mean (Arithmetic Average):

Virat’s total score in 5 matches = 365
∴ Mean = \(\frac{365}{5}\) = 73

Rohit’s total score in 5 matches = 305
∴ Mean = \(\frac{305}{5}\) = 61

Interpretation of Mean: Virat’s average score 73 is much better than Rohit’s 61.

So, Virat is the better performer. But, Virat’s average is heavily influenced by one extreme score of 169 runs. Thus, Mean can be effected by extremely high or low values.

2) Median (Middle Score):
Virat’s arranged scores: 27, 54, 54, 61, 169
⇒ Median = 54 (This is much lower than his mean 73)

Rohit’s arranged scores:48, 52, 63, 71,71
⇒ Median = 63 (This is very close to his mean 61)
For Virat: Two innings are below 54; two innings are above 54.
∴ Median score 54 is the centre of his performances.
For Rohit: Half of the innings are below 63; half are above 63.
So, Median score 63 is the centre of his performances.

Interpretation of Median: Rohit’s typical (central) performance is better than Kohli.

Thus, Rohit is more consistent. We would expect an innings score around 63 by Rohit.

The median score tells us what a batsman generally scores in a typical match because it is not affected by extremely low or high runs.

3) Mode (Most Frequent Score):
Virat: 27, 54, 54, 61,169
⇒ Mode = 54
Rohit: 48, 52, 63, 71, 71
⇒ Mode = 71
Mode indicates the batsman’s most common performance.

Interpretation of Mode: Virat most commonly scored 54 runs, while Rohit most commonly scored 71 runs.
Thus, in mode point of view Rohit is better.

Final Comparison and Conclusion:

One-Sentence Summary:

• Mean measures overall performance.
• Median measures typical performance.
• Mode measures the most common performance.

Multiple Choice Questions

Question 1.
Which of the following is NOT a method of collecting primary data?
1) Questionnaire
2) Government reports
3) Observation
4) Personal interview
Answer:
2) Government reports

Question 2.
Grouping data according to attributes or characteristics, is an example of:
1) Geographical classification
2) Quantitative classification
3) Chronological classification
4) Qualitative classification
Answer:
4) Qualitative classification

Question 3.
The orderly arrangement of data in rows and columns is known as:
1) Classification
2) Graphical presentation
3) Tabulation
4) Pictorial presentation
Answer:
3) Tabulation

Question 4.
Bar diagram is:
1) One-dimensional diagram
2) Two-dimensional diagram
3) multiple-dimensional diagram
4) Three-dimensional diagram
Answer:
1) One-dimensional diagram

Question 5.
Data represented through arithmetic line graph help in understanding
1) long term trend
2) Cyclicity in data
3) seasonality in data
4) Short term trend
Answer:
1) long term trend

Question 6.
Ogive curves can be helpful in locating graphically:
1) mean
2) mode
3) median
4) Range
Answer:
3) median

Question 7.
If most of the data is bunched onto the right, then
1) Mode = Mean
2) Mean > Mode
3) Mode = Median
4) Mode > Mean
Answer:
4) Mode > Mean

Question 8.
The sum of deviations from mean is always:
1) Positive
2) Negative
3) zero
4) Infinity
Answer:
3) zero

Question 9.
The arithmetic mean is obtained by:
1) Multiplying the values together
2) Dividing the sum of values by the number of values
3) Dividing the number of values by the sum of values
4) Subtracting smallest value from the largest
Answer:
2) Dividing the sum of values by the number of values

Question 10.
The most frequently occurring value in a data set is called:
1)Mean
2) Median
3) Mode
4) Mean Deviation
Answer:
3) Mode

Fill in the Blanks

Question 1.
_________ is the most common measure of central tendency.
Answer:
Mean

Question 2.
Graphically, historgram gives the value of _________ of the frequency distribution.
Answer:
Mode

Question 3.
_________ is the actual value that separates one class from another without gaps.
Answer:
Class boundaries

Question 4.
Mean > Median > Mode, if most of the data is bunched to the _________.
Answer:
left

Question 5.
If Mean = 3 and Median = 5, then Mode is _________.
Answer:
9

Hint: Mode = 3 Median – 2 Mean
= 3(5) – 2(3)
= 15 – 6 = 9.

III. One Word Answers

Question 1.
What are the components of a pie diagram called?
Answer:
The components of a pie diagram are called Sectors / Slices.

Question 2.
What is the difference between the lower limit and upper limit of a class called?
Answer:
The difference between the lower limit and upper limit of a class is called Class interval.

Question 3.
What is the middle value of an ordered data set called?
Answer:
The middle value of an ordered data set is called Median.

Question 4.
What is the term used to name the heading of a row in a table?
Answer:
The term used to name the heading of a row in a table is Stub.

Question 5.
What is the empirical formula to find mode for a moderately skewed distribution?
Answer:
Empirical Formula: Mode = 3 Median – 2 Mean.

Reviewing AP Inter 2nd Year Commerce Study Material Chapter 7 Entrepreneurship Questions and Answers can help students prepare confidently for exams.

AP Inter 2nd Year Commerce 7th Lesson Entrepreneurship Questions and Answers

Very Short Answer Questions

Question 1.
Who is an entrepreneur?
Answer:
The word entrepreneur is derived from the French verb “entrepreneur”, which means to undertake’.

Entrepreneur is a person who starts his own, new and small business. An entrepreneur may be referred to such a single person or a group who promote a new enterprise by collecting various factors of production and bearing the risks arising out of such venture.

Question 2.
What is an entrepreneurship?
Answer:
Peter F Drucker stated that entrepreneurship is neither a science nor an art. It has a knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed, the ends largely define what contributes knowledge in practice.

Question 3.
What is the primary difference between a startup and a small business?
Answer:

Question 4.
What is the main role of role of Entrepreneurship?
Answer:
The main role of entrepreneurship is to identify opportunities and create value by organizing resources to start and manage businesses.
It includes Job creation, Innovation and Economic growth, Capital formation.

Question 5.
What is the difference between innovation and invention?
Answer:
Innovation: Innovation involves successfully applying new ideas that create value.
It means turning an invention or a new idea into something practical, useful, and marketable.

Invention: An invention refers to the creation of a new device, method, or process. It represents the initial phase of “discovery.”

Question 6.
Mention one famous Indian startup and its field.
Answer:

1. Flipkart: Changed e-commerce in India, making online shopping available to millions (Acquired by Walmart).
2. Paytm: A leader in digital payments and financial services, popularizing cashless transactions.

Short Answer Questions

Question 1.
Explain the importance of entrepreneurship in economic development.
Answer:
Importance of entrepreneurship: Entrepreneurship serves as a powerful driver of progress, benefitting both the economy and society.
1. Job Creation (Create New Jobs): New businesses are essential for creating jobs. Entrepreneurs not only employ themselves but also add jobs for others as their ventures grow, which helps reduce unemployment rates.

2. Innovation & Economic Growth (Bring New Ideas to Life): Entrepreneurs introduce new products, services, and technologies that enhance lives and form new markets. This ongoing innovation boosts economic growth by increasing productivity and generating wealth.

3. Capital Formation (Turn Savings into Solutions): Entrepreneurs mobilize idle savings from different sources (investors, banks) and put them to productive use by starting businesses, leading to more investment in the economy.

4. Improved Standard of Living (Make Our Lives Better): By offering a wider variety of goods and services, often at competitive prices, entrepreneurs enhance consumer choice and raise the overall standard of living

5. Balanced Regional Development: Entrepreneurship can spread economic activity to less developed regions, helping to lessen regional disparities.

Question 2.
Describe the key traits of an entrepreneur.
Answer:
Key Traits of an entrepreneur
1. Risk-taking: This is not about being careless or reckless. It means having a strong readiness to take calculated risks. Entrepreneurs can balance potential rewards against possible losses and dare to act despite uncertainty. They understand that without some degree of risk, there is usually no significant reward.

2. Creativity and Innovation: Entrepreneurs are driven to come up with new ideas, solve existing problems, or find entirely new ways to deliver value to customers. They do not stick to traditional thinking and are willing to challenge established norms to find truly innovative solutions.

3. Decision-making and Leadership: In the fast-paced and often unclear world of new ventures, entrepreneurs must make quick and sound decisions, even when they lack complete information. They also need to inspire and guide their teams, clearly stating a goal and motivating others to work passionately toward it.

4. Faith in Self and Idea and Perseverance: The journey of entrepreneurship is often full of challenges. Entrepreneurs must believe in themselves and the value of their ideas, showing strong confidence. They must also be determined to push through, even during difficult times. They see mistakes as chances to learn and continually push forward.

Question 3.
What are some common challenges that startups face?
Answer:
Startup Challenges:

1. Lack of Funds: Many startups struggle to secure enough and timely funding, especially in the early stages.
2. Competition: The market is often crowded, and new startups face strong competition from established companies and other newcomers.
3. Market Acceptance: Even a great idea needs customer acceptance. Many startups fail -because they can’t find enough customers willing to pay for their product or service.
4. Regulatory Issues: Navigating complicated government regulations, permits, and legal requirements can be overwhelming.
5. Talent Acquisition: Finding and keeping skilled employees, especially in niche tech fields, can be difficult.

Question 4.
Explain the opportunities for entrepreneurship in Andhra Pradesh.
Answer:
Opportunities for entrepreneurship in Andhra Pradesh:
1. Aqua Culture & Fisheries: Andhra Pradesh leads in aquaculture. Local entrepreneurs, from small-scale farmers to larger exporters, take risks in shrimp and fish farming, processing and export, significantly aiding the economy and job creation.

2. Food Processing & Agri-Businesses: Entrepreneurs are emerging in areas such as chilli processing (Guntur), mango pulp production, and other agro-based fields, adding value to agricultural products and generating rural jobs.

3. Small & Medium Enterprises (SMEs) in Tier 2/3 Cities: In cities like Visakhapatnam, Vijayawada, and Tirupati, local entrepreneurs launch SMEs in manufacturing, retail, and services (such as coaching centers, local IT services, and hospitality) to meet regional demands and create jobs.

4. Tourism & Hospitality: With its coastline, historic sites, and religious centers, Andhra Pradesh sees local entrepreneurs establishing hotels, resorts, travel agencies, and eateries to serve tourists, directly impacting local economies.

5. Emerging Tech Startups (especially Visakhapatnam): Although smaller than in major metros, there’s a growing ecosystem of tech startups in cities like Vizag, where young entrepreneurs develop software solutions, mobile apps, and IT services, often backed by government initiatives to encourage innovation.

Long Answer Questions

Question 1.
Discuss the various functions and roles of an entrepreneur in a business.
Answer:
The word entrepreneur is derived from the French verb “entrepreneur”, which means ‘to undertake’.

Entrepreneur is a person who starts his own, new and small business. An entrepreneur may be referred to such a single person or a group who promote a new enterprise by collecting various factors of production and bearing the risks arising out of such venture.

Role of an Entrepreneur:
Entrepreneurs are often seen as “jack-of-all-trades” because they take on various responsibilities to start a new venture.

Primary Responsibilities (Functions) of an entrepreneur:
1. Idea Generation: This step marks the true beginning of the entrepreneurial journey. Entrepreneurs constantly search for new ideas, showing an ability to identify emerging opportunities in the market or find innovative ways to improve existing products or services.

They may brainstorm, observe market trends, or engage with potential customers to develop and refine concepts for the future.

2. Organizing Resources: A good idea alone is not enough; entrepreneurs must gather and organize all necessary resources to bring that idea to life. This includes managing human resources by hiring skilled individuals, securing financial capital through personal savings or investors, acquiring physical resources like office space and equipment, etc.

3. Regulation of Business Operations: Once the necessary resources are gathered, the entrepreneur takes charge of the daily operations of the business. This responsibility includes essential management tasks like planning, directing, coordinating, and controlling all aspects of the business from production to sales and marketing.

4. Taking Risks & Dealing with Uncertainty: Entrepreneurs operate in uncertain conditions, investing their time, money, and effort into ventures that may not succeed. They must make critical decisions even with incomplete information, aware of the potential for losses but motivated by possible significant gains. It highlights that they prefer to take risks that have been well- considered, avoiding rash decisions.

5. Making Money: While creating value is crucial, a key goal for entrepreneurs is to make a profit.

Profit serves as the tangible reward for their risk-taking, innovation, and effective management.

Additionally, profits are vital for business growth, expansion, and reinvestment in future opportunities.

Question 2.
Explain the importance of entrepreneurship and its impact on the economy and society.
with examples from Andhra Pradesh.
Answer:
I) Importance of entrepreneurship: Entrepreneurship serves as a powerful driver of progress, benefiting both the economy and society.

1. Job Creation (Create New Jobs): New businesses are essential for creating jobs. Entrepreneurs not only employ themselves but also add jobs for others as their ventures grow, which helps reduce unemployment rates.

2. Innovation & Economic Growth (Bring New Ideas to Life): Entrepreneurs introduce new products, services, and technologies that enhance lives and form new markets. This ongoing innovation boosts economic growth by increasing productivity and generating wealth.

3. Capital Formation (Turn Savings into Solutions): Entrepreneurs mobilize idle savings from different sources (investors, banks) and put them to productive use by starting businesses, leading to more investment in the economy.

4. Improved Standard of Living (Make Our Lives Better): By offering a wider variety of goods and services, often at competitive prices, entrepreneurs enhance consumer choice and raise the overall standard of living.

5. Balanced Regional Development: Entrepreneurship can spread economic activity to less developed regions, helping to lessen regional disparities.

II) Examples of Entrepreneurship in Andhra Pradesh:

1. Aquaculture & Fisheries: Andhra Pradesh leads in aquaculture. Local entrepreneurs, from small-scale farmers to larger exporters, take risks in shrimp and fish farming, processing and export, significantly aiding the economy and job creation.

2. Food Processing & Agri-Businesses: Entrepreneurs are emerging in areas such as chilli processing (Guntur), mango pulp production, and other agro-based fields, adding value to agricultural products and generating rural jobs.

3. Small & Medium Enterprises (SMEs) in Tier 2/3 Cities: In cities like Visakhapatnam, Vijayawada, and Tirupati, local entrepreneurs launch SMEs in manufacturing, retail, and services (such as coaching centers, local IT services, and hospitality) to meet regional demands and create jobs.

4. Tourism & Hospitality: With its coastline, historic sites, and religious centers, Andhra Pradesh sees local entrepreneurs establishing hotels, resorts, travel agencies, and eateries to serve tourists, directly impacting local economies.

5. Emerging Tech Startups (especially Visakhapatnam): Although smaller than in major metros, there’s a growing ecosystem of tech startups in cities like Vizag, where young entrepreneurs develop software solutions, mobile apps, and IT services, often backed by government initiatives to encourage innovation.

Question 3.
Define and explain the characteristics of an entrepreneur.
Answer:
The word entrepreneur is derived from the French verb “entrepreneur”, which means ‘to undertake’.

Entrepreneur is a person who starts his own, new and small business. An entrepreneur may be referred to such a single person or a group who promote a new enterprise by collecting various factors of production and bearing the risks arising out of such venture.

Characteristics of entrepreneurs:
1. Risk-taking: This is not about being careless or reckless. It means having a strong readiness to take calculated risks. Entrepreneurs can balance potential rewards against possible losses and dare to act despite uncertainty. They understand that without some degree of risk, there is usually no significant reward.

2. Creativity and Innovation: Entrepreneurs are driven to come up with new ideas, solve existing problems, or find entirely new ways to deliver value to customers. They do not stick to traditional thinking and are willing to challenge established norms to find truly innovative solutions.

3. Decision-making and Leadership: In the fast-paced and often unclear world of new ventures, entrepreneurs must make quick and sound decisions, even when they lack complete information. They also need to inspire and guide their teams, clearly stating a goal and motivating others to work passionately toward it.

4. Faith in Self and Idea and Perseverance: The journey of entrepreneurship is often full of challenges. Entrepreneurs must believe in themselves and the value of their ideas, showing strong confidence. They must also be determined to push through, even during difficult times. They see mistakes as chances to learn and continually push forward.

5. Networking and Relationship Building: They actively build and maintain relationships with a variety of stakeholders, including investors, suppliers, customers, and experienced mentors.

6. Flexibility and Adaptability: To succeed, entrepreneurs need to be able to change their plans, shift strategies quickly, and embrace new technologies or changing market conditions to keep their businesses relevant and competitive.

7. Opportunity Recognition: They have a strong ability to notice subtle market trends, identify unmet needs that others miss, and find gaps in the current market landscape.

8. Continuous Learning: The most successful business people are lifelong learners. They constantly seek new knowledge and are willing to adjust their methods based on feedback and new insights.

Question 4.
Explain the concept of innovation in business and its different types, providing examples.
Answer:
Innovation is a vital tool for entrepreneurship and a key factor for success in business.

Innovation involves successfully applying new ideas that create value. It means turning an invention or a new idea into something practical, useful, and marketable. This includes introducing something genuinely new or significantly improved.

Example: The smartphone was an innovation. Mobile phones existed (invention), but the smart phone combined multiple technologies (internet, apps, touch screen) in a new way to create significant value and a new market.

Types of Innovation in Business.
Innovation can occur in various areas of a business:

Product Innovation:
Meaning: Developing new or significantly improved goods or services. This involves enhancing features, performance, design, or user-friendliness.
Example: Launching an electric car that can charge wirelessly (new product) or adding features to an existing messaging app to improve its capabilities (improved product).

Process Innovation:
Meaning: Implementing a new or significantly improved method of production or delivery. This aims to make processes more efficient, cost-effective, or higher quality.
Example: Henry Ford’s assembly line revolutionized car manufacturing by making the process much faster and cheaper. A company using drones for faster package delivery represents process innovation.

Valuable ideas can come from several sources, i.e, customers, competitors and technology etc.,

Question 5.
Explain the concept of a startup, differentiate it from a traditional small business, and describe the key steps involved in starting a startup.
Answer:

Steps to Start a Startup:

1. Identifying a Problem & Solution: The first crucial step is to understand a real problem faced by people or businesses and brainstorm a unique, effective solution.

2. Developing a Minimum Viable Product (MVP): Instead of creating the final product, a startup builds an MVP, which is the simplest version of the product or sen/ice with enough features to satisfy early customers and gather feedback for future development. This approach lowers initial costs and risks.

3. Testing the Idea (Pilot Projects): The MVP is launched as a pilot project for a small group of early users. This helps see if the solution works, if customers will use it, and if they will pay for it. Based on feedback,
the startup refines its product or changes direction entirely.

4. Funding Basics: Startups often need outside funding to grow quickly.

• Bootstrapping: Using personal savings or revenue from initial sales to fund the business and reduce reliance on outside capital.
• Angel Investors: Wealthy individuals who invest in early-stage startups and often provide mentorship.
• Venture Capital (VC): Funds managed by professional investors that invest in high-growth potential startups in exchange for equity.

Fill in the Blanks

Question 1.
The word “entrepreneur” is derived from the French word “Entrepreneur,” which means to __________.
Answer:
Undertake

Question 2.
The first step in starting a business is __________ generation.
Answer:
Idea

Question 3.
A __________ is a young company that aims to develop a unique product or service and sell it.
Answer:
Startup

Question 4.
One of the common challenges for startups is a lack of __________.
Answer:
Funding

Question 5.
Successful entrepreneurs must have a strong readiness to take __________ risks.
Answer:
Calculated

Question 6.
A key goal for entrepreneurs is to make a __________.
Answer:
Profit

Question 7.
Flipkart and Zomato are examples of famous Indian __________.
Answer:
Startups