Economics Notes (Class 10)

CBSE Class 10 Economics Chapter 1 Development

Written by cbselearners

Development of different people, different goals

Different people have different development goals. What is development for one might not be developed for another?
Landless Labours
More Wages, More days of work
Prosperous Farmer
Higher income
Urban Unemployment Youth
Adivasi (Tribes)
Education, Equality, Land Ownership, Rising Socio-Economic Status
Freedom, Education at par, Equal Opportunity

Growth VS Development

Economic Growth
Economic growth refers to an increase over time in a country`s real output of goods and services (GNP) or real output per capita income.
Economic development implies an upward movement of the entire social system in terms of income, savings and investment along with progressive changes in the socioeconomic structure of the country (institutional and technological changes).
Growth relates to a gradual increase in one of the components of Gross Domestic Product: consumption, government spending, investment, net exports.
Development relates to the growth of human capital indexes, a decrease in inequality figures, and structural changes that improve the general population’s quality of life.
Quantitative. Increases in real GDP.
Qualitative.HDI (Human Development Index), gender-related index (GDI), Human poverty index (HPI), infant mortality, literacy rate etc.
Brings quantitative changes in the economy
Brings qualitative and quantitative changes in the economy
Concerned with structural changes in the economy
Growth is concerned with an increase in the economy’s output

Income & Other Goals

Besides seeking more income, one way or the other.  They resent discrimination. All these are important goals. In fact, in some cases, these may be more important than more income or more consumption because material goods are not all that you need to live. People want following things besides good income is 
  1. Job security
  2. Respect for Others
  3. Safe Environment
  4. Equal Treatment
  5. Freedom

National Development

It is very important to keep in mind that different persons could have different as well as conflicting notions of a country of a country’s development.
  • The ability of a Nation to improve the lives of its citizens.
  • Measures of improvement can be increased in GDP, on social aspects like literacy rate, availability of healthcare.
  • Income Growth
  • Poverty Alleviation
  • Satisfaction of Social and Economic needs.
  • Sustainment of democratic and participatory society.

Comparing States & Nations

  • Income – High VS Low
  • For comparison: Average Income or Per Capita Income = Total Income / Total Population
  • World Development Report 2006, “In 2004 countries with per capita income of Rs. 453000 per annum are called rich or developed countries.
  • Those with per capita income of Rs.37000 or less are called low-income countries.
  • India – Low-income countries because of its per capita income in 2004was just  Rs 28000 per annum.
  • Rich Countries – Excluding Countries of the Middle East & certain other small Small Countries are developed countries.
Development Besides Income
  • Infant Mortality Rate – Number of children that die before the age of one year as a proportion of 1000 live children born in that particular year.
  • Literacy Rate – Proportion of literate population in the 7 and above.
  • Net Attendance Rate – Total number of children in the age group 6-10 attending school as a percentage of the total number of children in the same age group.
  • Public Facilities – It’s not about the money in your pocket/ pollution free environment, unadulterated medicines.
Sustainability of Development 
  • We have not inherited the world from our forefathers, we have borrowed it from our children.
  • Sustainability is something that the process that involves the development of future generations and satisfies the need of present generation without harming/ damaging the surroundings.

Important Questions

1. “People have conflicting development goals” Support the Statement with suitable examples.
A. It is true to say that people have conflicting developmental goals. what may be the development for one may not be for the other. Different people have different interests, life, and state of mind. They visualize things, actions, etc.
According to the level of understanding. For example, the construction of a flyover to reduce the construction of the flyover surrounding houses, shops, etc. need to be demolished which may not be like by the occupants of these shops and houses. This may not be a development goal for them.
2. Describe any three possible development goals of landless rural labors.
A. The following can be the development goals of landless rural labors:
  • More days of work with better wages.
  • Social and economic equality
  • Low price food grains
  • Better education facilities for their children
3. “Money cannot buy all the goods and services that one needs to live well” Do you agree with this statement? Justify your answer with any three suitable arguments.
A. Yes, we agree with the statement that money cannot buy all the goods and services that one needs to live well because of the following reasons.
  • Money can buy things that can be one factor on which our life depends like food. but the quality of non-material things like freedom, security, and respect cannot be bought with money.
  • We cannot buy pollution free environment, unadulterated medicines, and peace with money.
  • Schools, colleges, parks, hospitals, etc. are the facilities which cannot be run individually. There has to be a collective effort of teamwork between the government or society in providing these to the general public.
4. Why does Kerala have a better Human Development Index ranking in comparison to Punjab? Explain with 3 reasons.
A. Kerala has a better Human Development Index ranking in comparison to Punjab even through Punjab has a higher per capita income in comparison to Kerala because of the following reasons:
  • Education – Kerala has a higher level of literacy rate than Punjab. In fact, the literacy rate of Kerala is the highest in India in Kerala, the literacy rate is ninety-one percent which is almost as high as that of China. This is mainly because education has been made available to everyone in Kerala whether they are upper caste or the lower caste. There is no basis in the field of education, which is one of the major reasons why Kerala has a Better HDI than Punjab.
  • Health Care – The healthcare facilities in Kerala are far better than those in Punjab Kerala has over 2700 government medical hospitals, with 330 beds per 1,00,000 population which is the highest in India making it achieve a higher ranking in the HDI.
  • Politics – The political parties in Kerala have taken steps for the genuine welfare of the people and have invested intelligently and methodologically in the field of health and education. The government of Kerala has even worked for the land reforms in the State to support the people.
5. What is the main norm used by the World Bank in classifying different countries as rich and poor countries? What are the restrictions of such norms?
A. Average income or per capita income is the main domain used by the World Bank in classifying different countries as rich and poor countries. According to the World Bank, income is one of the most important attributes. Countries with an average income of USD 12616 or less are called middle-income countries and countries with an average income of USD 1035 or less are called Poor Countries.
This is based on the conception that the higher the total income of the country, the development it is. However, there are certain restrictions to this norm because of income, although important measure for calculating growth and development is not the only attribute.
Over the past few decades, health and education have made an important mark in the development of a country. so, even if the country has high per capita income and literacy rate but does not have good medical facilities, it cannot be considered developed.
6. What is Human Development Index? Which organization measures the HDI? Explain 3 major indicators of HDI.
A. Human Development Index is a tool developed by the United Nations to measure and rank countries based on the level of social and economic development. the HDI makes it possible to track changes in development levels from time to time and to cover overall development with the object of improving the conditions of people from all angles.
The organization that measures the HDI are as follows:
  • Health – Without proper health facilities, no matter how much a country earns, it will not be able to provide basic facilities to its people.
  • Education – Over the past few decades, education has become an important factor in leading a quality life. So, if the country has the high income but the literacy rate is low, it cannot be considered development.
  • Security – More than income people want to have a secured life. A country should be able to provide its citizens with a sense of security.
7. Explain the importance of sustainable development with reference to groundwater by giving example.
A. Sustainable Development means a development in a manner that satisfies the demands of today without hampering or compromising the ability of the future generations to meet the needs by utilizing the resources.
In simple language, it means using the resources in a manner that you and the future generations can use them tomorrow as well.
It is important because of the reason that we may enjoy the gift of nature, but cannot think of our generations to live without them. It becomes our duty to use to use nature for the fulfillment of our needs and not our greed. Our development should not hamper the needs of the future generation.
In the case of groundwater, we have utilized it to the maximum. It is a natural resource which is replenished by nature. People living in the areas with surplus water reserves should take care for its conservation.
Efforts should be made not to overuse or degrade the quality of water. Recent evidence shows that groundwater is under serious threat of disappearance. if suitable steps are not taken, it can pose serious consequences.
8. What is sustainable development? Suggest any 2 ways in which resources can be used judiciously.
A. Sustainable development is a pattern of development that promises the use of resources in a way that meets human needs while preserving the environment so that needs can be met not only in the present but also for the generation to come.
In basic understanding, like today we are able to use resource given to us, the future generations should be able to use them for which we need to keep a tab on our usage and use the resources judiciously.
Today, we need to fuel the concept of sustainability of development to make sure that resources are also available for the future generation.
Resources can be used judiciously in the following manner – 
  • Use a bicycle or walk on foot for short distance rather than using two wheelers or four wheelers can help in saving fuel and also help in reducing air pollution.
  • Urbanization without deforestation can help us to sustain the natural environment.
  • By using CNG in place of petrol we can help in reducing air pollution.
  • Judiciously using water resources and not polluting them will help us to preserve our water resources.
9. What is meant by economic development? What are the two bases of measuring the economic development of a country?
A. Economic development can be defined as efforts that seek to improve the economic well being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base. it is the increase in the growth and welfare of people, improvement of quality.
It is a process, which makes people in general, better off by increasing their command over goods and services and by increasing the option open to them. The two bases of measurement economic development of a country are as follows –
  • Human Development Index (HDI)
  • Per Capita Income
10. In what respects are the criteria used by the UNDP for measuring development Different From the one used by the World Bank?
A. The criteria used by the UNDP for measuring development is different from the criteria used by the World Bank in the following ways –
  • The UNDP compares the development of the countries on the basis of literacy rate,  gross enrollment ratio and health status of their people. On the other hand, the eWorld Bank compares the development of the countries on the basis of per capita income or average income.
  • On the basis of the comparison done by the World Bank, the countries are developed into 3 categories –
  1. Rich or Developed or High-income countries
  2. Middle income or Developing countries
  3. Poor or Undeveloped countries
  • The UNDP has a broader concept of development and the World Bank has a narrow concept of development.

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