DPS-MODERN INDIAN SCHOOL, DOHA, QATAR

CLASS X
ECONOMICS NOTES
ACADEMIC YEAR 2014-2015
CHAPTER-1 DEVELOPMENT

DEFINATION:
1. National Income: Total value of all final goods and services
produced within a country in a year plus income from abroad.
NATIONAL INCOME = GDP+ Income from
Abroad
2. Per Capita Income or average Income: It is obtained by Dividing
the National Income y the population of the country.
Per Capita Income = ___ National Income____
Total Population
3. According to the World Development Report
the World Bank:

2012 published by

High Income Countries: US $ 12276 and above/ Annum

Low Income Countries: US $ 1005 and below/ Annum
India- Middle Income Country-: US $ 1304.4/ Annum
4. Economic Growth: It a process whereby a countrys real income
increases over a long period of time.
In other words, it is concerned with increase in national Income of
the country.
Page 1 of 4

5. Economic Development: A sustained increase in real per capita

income that promotes economic welfare by reducing poverty,
unemployment and inequalities in Distribution of income.
6. Sustainable Development: It means that development should take
place without damaging the environment, and development in the
present should not compromise with the needs of the future
generation.

Questions and Answers:

7. What are the factors that are important to people other than
Income?
Ans. Freedom, Equal Treatment, Security, peace, Respect for
others, Hygienic Environment, Medical Facilities etc.

8. Explain the main reasons for the need for environment friendly
economic growth and two suggestions to achieve them.
And. Reasons for the need of environment friendly Economic
Growth:
i.

Present production technology has polluted atmosphere and

water bodies with garbage, smoke and poisonous gases.

ii.

Rapid economic growth and industrialization have led to

reckless exploitation of natural Non- renewable resources.

iii.

Industrial effluents pollute rivers.

Suggestions to achieve it:

i.

Increase in the use of the alternative sources of energy like

solar energy, wind energy, nuclear energy etc.

Page 2 of 4

ii.

Measures to reduce Global warming and Global limits on

carbon emission etc.

iii.

Control overuse of mineral health.

iv.

Proper fuel selection and utilization.

v.

Careful planning and setting of industries and proper

treatment of industrial waste.

9. Why do you think average income is an important criterion for

development?
Ans. Per Capita Income is an important criterion because it gives
some idea about the rising standard of living. Prosperity of a
country depends not only on the size of its national income but
also on the number of people who would share it. A rising in
average ( i.e. per capita income) indicates that more goods and
services are available on average to people.
10.

What are the limitations of per capita income?

Ans. i.
Average income is not the only factor of production, this
factor hides Distribution of
Income i.e. it hides disparities of
income.
ii.
Per capita income does not show the Equitable distribution of
income in a country.
iii.
National Income rises due the section of the society having
high levels of income. Leading
to a big gap between the
rich and the poor.
iv.
It excludes all non-marketed goods and services like goods
produced for Self-consumption.
v. Rise in per capita income may be due to use of modern capital
intensive technology in production which may be labour displacing
in nature thus adversely affecting the poor masses.
11.
Besides size of per capita income, what other property of
income is important in comparing two or more societies?
Ans. Average income i.e. per capita income is an important but not
the only criterion for development. Along with average income,
equitable distribution of income in a country should also be
Page 3 of 4

considered. If the national income is widely distributed among the

people, it shows a better distribution of income. High per capita
income combined with a better distribution of income is a good
index of economic welfare.

12.

How is BMI calculated? Explain the three steps taken.

Ans. Body Mass Index(BMI):

Step 1 : Weight of a person in kg and height in metres is taken.
Step 2 : Divide the weight by the square of the height.
BMI= ___Weight___
(Height)2
Step 3 :If BMI < 18.5, then person is undernourished
If BMI > 25 , then the person is overweight
13.
Write a short note on Human Development Index. What is the
significance of this approach?
Ans. Human Development is a Human-Centered approach
towards development. It is concerned with their well-being, needs,
choices and inspirations.
Human Development is a wider term which not only includes
economic development but also includes development of ones
knowledge and educational capabilities as well as ones health
conditions so that one may lead a healthy and long life.
Human Development aims at:
i.
Building of different human capabilities so that one may
make use of the natural resources , have sustainable
development , have personal and social security.
ii.
People will have all opportunities not only of livelihood but
also to ensure a decent standard of living.

Page 4 of 4