Basic Economic Problems — Question Answer
Welcome to HSLC Guru. This post provides complete ASSEB Class 9 Social Science Economics Chapter 2 solutions for Basic Economic Problems.
সাৰাংশ: এই অধ্যায়ত ভাৰত আৰু অসমৰ মূল অৰ্থনৈতিক সমস্যাসমূহ—দাৰিদ্ৰ্য, দ্ৰুত জনসংখ্যা বৃদ্ধি, নিবনুৱা আৰু মুদ্ৰাস্ফীতিৰ বিষয়ে আলোচনা কৰা হৈছে। দাৰিদ্ৰ্য সীমাৰেখা, জনঘনত্ব আৰু লিংগানুপাতৰ দৰে ধাৰণাৰ জৰিয়তে এই সমস্যাসমূহ জোখ-মাখ কৰা হয়। নিবনুৱাৰ বিভিন্ন প্ৰকাৰ আৰু মুদ্ৰাস্ফীতি নিয়ন্ত্ৰণৰ উপায়ো ইয়াত ব্যাখ্যা কৰা হৈছে। শেষত সুস্থিৰ উন্নয়ন আৰু সেউজ অৰ্থনীতিৰ ধাৰণাৰ জৰিয়তে পৰিৱেশ ৰক্ষা কৰি উন্নয়নৰ পথ দেখুওৱা হৈছে।
Summary: This chapter discusses the basic economic problems of India and Assam—poverty, rapid population growth, unemployment and inflation. It explains how these problems are measured through concepts such as the poverty line, density of population and sex ratio. It also describes the different types of unemployment and the methods of controlling inflation. Finally, it introduces sustainable development and the green economy as ways to achieve growth while protecting the environment.
Textbook Questions and Answers
Very Short Answer
1. Define: (a) Poverty (b) Unemployment (c) Density of population (d) Sex ratio (e) Absolute poverty (f) Relative poverty (g) Sustainable development (h) Green economy.
Answer: (a) Poverty: A situation in which a person is unable to secure for himself and his family the basic necessities of life such as food, clothing, shelter, education and medical care.
(b) Unemployment: A situation in which a person who is able and willing to work is unable to find work at the prevailing wage rate.
(c) Density of population: The average number of persons living per square kilometre of land.
(d) Sex ratio: The number of females per one thousand males.
(e) Absolute poverty: A situation in which the income of a household falls below the minimum subsistence level needed to sustain life.
(f) Relative poverty: A situation in which the income of a household is below the average standard of living of society by a certain percentage.
(g) Sustainable development: Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.
(h) Green economy: An economy that achieves sustainable development through low carbon emission and efficient use of resources without harming the environment.
2. What is poverty line? What is the poverty line in rural and urban areas?
Answer: The poverty line is the minimum level of income or consumption required to meet the basic necessities of life. In India it is measured on the basis of daily calorie intake—2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.
3. What is the population of India and Assam according to the 2011 census?
Answer: According to the 2011 census, the population of India is about 121 crore and that of Assam is about 3 crore 12 lakh.
4. What percentage of the total land area of the world is in India?
Answer: India occupies about 2.4 per cent of the total land area of the world.
5. Which state of India has the highest sex ratio and how much is it?
Answer: Kerala has the highest sex ratio in India; according to the 2011 census it is 1084 females per one thousand males.
6. What is the density of population of Assam?
Answer: According to the 2011 census, the density of population of Assam is 397 persons per square kilometre.
7. What is disguised unemployment?
Answer: Disguised unemployment is a situation in which more workers are engaged in a job than are actually needed, so that the extra workers add nothing to total output; even if they are removed, production does not fall. It is mostly found in the agricultural sector.
8. What is inflation?
Answer: Inflation is a sustained rise in the general price level of goods and services, which reduces the purchasing power of money.
9. What are the causes of inflation?
Answer: The main causes of inflation are demand-pull inflation (demand exceeding supply), cost-push inflation (rise in the cost of production and wages), an increase in the supply of money and deficit financing.
10. What is known as suppressed inflation?
Answer: When the government checks a rise in prices through measures such as the public distribution system (rationing) and price control, and keeps prices below the level of the open market, that situation is known as suppressed inflation.
11. How many workers are there in an unorganised (unregulated) sector enterprise?
Answer: An enterprise in the unorganised sector generally employs fewer than 10 workers.
12. Complete the following: Worker-population ratio = ______.
Answer: Worker-population ratio = (Total working population ÷ Total population) × 100.
13. Which committee put forward the definition of sustainable development and in which year did it do so?
Answer: The World Commission on Environment and Development, that is the Brundtland Commission, put forward the definition of sustainable development in 1987 in its report ‘Our Common Future’.
14. What is the motto of environmental thinkers?
Answer: The motto of environmental thinkers is “Think globally, act locally”.
Long Answer
15. Discuss the main causes for the problem of rapid growth of population in India.
Answer: Several factors are responsible for the rapid growth of population in India. First, a high birth rate combined with a falling death rate—brought about by improvements in medical care—has increased the population rapidly. Second, the lack of family planning and widespread illiteracy prevent many families from controlling the number of children. Third, the practice of early marriage and child marriage raises the birth rate. In addition, poverty, the preference for large families, son preference and the lack of social awareness have made the problem more serious. Migration from neighbouring areas has also added to the population in certain regions. All these causes together have led to the rapid growth of India’s population.
16. What is poverty? Explain how the poverty line determines poverty.
Answer: Poverty is a situation in which a person is unable to secure for himself and his family the basic necessities of life such as food, clothing, shelter, education and medical care. The poverty line is a minimum level of income or consumption that divides the population of a country into two categories—‘poor’ and ‘non-poor’. In India the poverty line is mainly fixed on the basis of daily calorie intake—2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. The monthly per capita expenditure needed to obtain this quantity of calories is also treated as the poverty line. Those whose income or consumption falls below this line are counted as poor. In this way the poverty line helps to measure the extent of poverty in a country.
17. What is inflation? Discuss the main methods of controlling inflation.
Answer: Inflation is a sustained rise in the general price level of goods and services, which reduces the purchasing power of money. The methods of controlling inflation can be divided mainly into three groups. First, monetary measures—the Reserve Bank of India raises the bank rate to discourage borrowing and thus reduces the supply of money in the market. Second, fiscal measures—the government reduces public expenditure, increases taxes and cuts deficit financing so as to reduce the extra purchasing power in the hands of the people. Third, increasing production and supply—by raising the output of goods and by supplying essential commodities through the public distribution system, prices are kept under control. The correct application of these measures can bring inflation under control.
18. What is unemployment? What are its different types? Mention the main causes of this problem.
Answer: Unemployment is a situation in which a person who is able and willing to work is unable to find work at the prevailing wage rate. Unemployment can be divided mainly into two types—rural unemployment and urban unemployment. Rural unemployment includes seasonal unemployment and disguised unemployment, while urban unemployment includes industrial unemployment and educated unemployment. The main causes of this problem are the rapid growth of population, jobless growth, stagnation of the agricultural sector, the slow pace of industrialisation, a defective education system and the shortage of capital. These causes together have deepened the problem of unemployment in India.
Short Notes
19. Seasonal unemployment.
Answer: Unemployment that appears only during certain seasons or parts of the year is called seasonal unemployment. In agriculture, farmers do not get work for the rest of the year except during sowing and harvesting; similarly, such unemployment is seen in seasonal industries like sugar mills and ice factories.
20. Demand-pull and cost-push inflation.
Answer: When the demand for goods and services exceeds their supply and prices rise as a result, it is called demand-pull inflation. On the other hand, when prices rise because of an increase in the cost of production such as the cost of raw materials and wages, it is called cost-push inflation.
21. Sustainable development.
Answer: Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs is called sustainable development. The Brundtland Commission put forward this definition in 1987. It stresses development that maintains a balance among economic progress, social justice and protection of the environment.
22. Green economy.
Answer: A green economy is an economy that is low in carbon emission, efficient in the use of resources and socially inclusive. Its main aim is to achieve sustainable development through public and private investment without harming the environment.
23. Open and suppressed inflation.
Answer: When prices rise freely in the open market without any government control, it is called open inflation. On the other hand, when the government checks the rise in prices through the public distribution system and price control, it is called suppressed inflation.
Extra Questions and Answers
1. What is meant by ‘Below Poverty Line’ (BPL)?
Answer: People whose income or consumption falls below the poverty line fixed by the government are said to be ‘Below Poverty Line’ (BPL). Such people are unable to meet the basic necessities of life and are considered eligible for government assistance.
2. Mention two ill-effects of rapid growth of population.
Answer: (a) Rapid growth of population increases the problem of unemployment and lowers per capita income. (b) It puts pressure on food, housing, education and health services and causes excessive strain on natural resources.
3. What are the three pillars of sustainable development?
Answer: The three pillars of sustainable development are economic development, social development and protection of the environment.
4. Write two measures to solve the problem of unemployment.
Answer: (a) Creating more employment opportunities by developing agriculture and small and medium industries. (b) Spreading vocational and job-oriented education to make the youth self-reliant and controlling the growth of population.
Key Terms
| Term | Meaning |
|---|---|
| Poverty line | The minimum level of income or consumption that divides the population into poor and non-poor. |
| Density of population | The average number of persons living per square kilometre. |
| Sex ratio | The number of females per one thousand males. |
| Inflation | A sustained rise in the general price level of goods and services. |
| Disguised unemployment | A situation where more people are employed than needed, so extra workers add nothing to output. |
| Sustainable development | Development that meets present needs without compromising future generations’ ability to meet theirs. |