STORY OF ECONOMIC DEVELOPMENT

12.1. Economic Development and Planning 

Short Answer Type Questions
Q.1. What do you mean by national income? (MP 2015)
Ans. National income is the income of a country. It is obtained adding by monetary values of the commodities and services produced in a country in a year.
      Marshal writes: "The labour and capital of the country acting on its natural resources material and immaterial including  services of all kinds produce annually a certain net aggregate of commodities. This is the real net annual, income or revenue of the country or the national dividend.

Q.2. When is national income computed ? (MP 2017) 
Ans. National income is computed for a year (1st April to 31st March) 

Q.3. What is India vision 2020? (MP 2009, 13, 16,)
Ans. India vision 2020: In January 2003, the planing commission of India has issued an important document named India vision 2020. According to this document till the year 2020, India will we include in the category of developed countries. As a result of this, unemployment, poverty, illiteracy will be completely eradicated from the country.
      The planing commission has estimated that the year 2020, 135 crore of country population will be better nourished, of good living standard, completely healthy and of more average living age.

Long Answer Type Questions
Q.1. Write the failure and success of  planing in India. (MP 2010)
Ans. Success of planing in India :
1. Increase in national and per capita income: At the current prices the national income Of India was only 1942 crore in 1950-51 which rose up to 28,46,76.
2. Increase in rate of saving and investment: Some portion of the national income is invested ( use for production) for the economic development. In each plan high targets of saving and investment were fixed for this which have nearly been achieved too. The gross saving and investment rates in the year 1950-51 (on current prices ) were only 8.9 and 8.7 per cent of gross national product which increased to 32.4 and 33.8 percent in the year 2005-06.
3. Development in agriculture sector : Agriculture production has increased extensively due to economic planing. The production of food grains increased to 2083 lakh tons in the year 2005-06 which was only 508 lakh tones in 1950-51.
4. Industrialisation: There has been a remarkable increase in industrial sector through five year plans. Today India has become the tenth largest industrial country of the world. In the year 1950-51 the number of public enterprises was only 5 which rose up to 242 in March 2006.
5.Increase in power generation: During planing period production of electricity increased considerably. Power generation which was only 5.1 billion kilowatt in 1950-51 rose up to 623.2 billion kilowatt in 2005-06. By end of March 2005, 85 per cent villages of the country were electrified.
     The failure in India during plan period: 
1. Slow progress in per capita income: Inspite of economic planing in the growth per capita income has been very slow. still today 21 per cent of population in India is living below poverty line.
2. Regional imbalance : As a result of planing, the regional imbalance in the country should hsave decreased, but there has been significant change.
3. Increase in prices: The prices are continuously increasing since the period planing. It is estimated that the during the period of planing the prices increased near about 27 times.
4. Increase in unemployment: An important objective of economy planing was to reduce unemployment. But the unemployment kept on increasing at the end of the plan.
Now it is estimated to about 4 crore.


12.2.  Rural Economy and National Rural Guarantee
 Employment Yojana : Madhya Pradesh

Very Short Answer Type Questions

Q.1. What type of employment is provided under National Rural Rozgar Guarantee Act? (MP 2017)
Ans. under this act employment is provided for 150 days for inefficient labour.

Q.2. Who solve the problem of regarding job card? 
Ans. The problem regarding the Job cards solve by Gram Panchayat.

Short Answer Type Questions
Q.1. What is national Rural Empolyment Guarantee Yojana ?
Ans. National Rural Employment Guarantee Yojana is a government scheme in rural areas to provide employment to people. Under this schme in one financial year one member of the family in rural areas get employment for 150 days. On adult person registered family gets the benefits of it. They are eligible to get the work within 150 days.

Q.2. What is job card? how is it received ? 
Ans. The families applying for employment in rural areas are provide job cards by Gram Panchayat. In thus job card, full information of the applicant is given. This card is valid for five years from the date of issue. After every five years within one month the card is received by Gram Panchayat. Job card is obtained by the applicant by applying in Gram Panchayat pf their region. 

12.3. Money and Finance System

Very Short Answer Type Questions
Q.1. Write any two functions of Money.
Ans. The two functions of money  are: 
(a) Medium of exchange,
(b) measure of value,
(c) Transfer of purchasing power, 
(d) store of purchasing power.

Short Answer Type Questions
Q.1. What do you mean by finance system?
Ans.
The finance institutions keeps our surplus income or saving as deposits and lend it, known as financing system. Thus the process of keeping balance between demand and supply of wealth or capital in the economy is called financing system. 
   In a financing system, the institutions or people exchanging money are called financing institutions.

Q.2. What is A.T.M. ? State its advantages. (MP 2012, 15,)
Ans. As it is clear by its name A.T.M. is a system in which money can we withdrawn at any time. The A.T.M. is made by plastic and consists of a metal chip. On which all the details related to bank account are entered. A.T.M. has made the banking function very easy and convenient.
Advantages of A.T.M.: 1. One can withdraw money from anywhere within the country when required.
2. This system provide facility of purchasing.
3. There is no need of standing in queue in a bank for money withdrawal.
4. This system saves time. 
5. A.T.M. has made banking transaction more easy and comfortable.
Long Answer Type Questions
Q.1. Write short note on : 1. Mobile bank, 2. Chit fund.
Ans. Mobile bank: It is a self help group of financial information. A mobile bank has been set up in thew district of Khargone of Madhya Pradesh. The institution named 'Laxmi Vhini' functions mobiling in a van. The capital of the institution is Rs.1 crore and it provides various types of banking facilities available to villages by going from village to village.

Chit fund: In south Indian states there has been s long history of chit fund plans. It is much popular in the villages of Southern India. There it runs in both the forms-organised and unorganised. It is short of a saving plan found in India. The members of these chit funds are made in fixed number. After a prefixed interval of time these members meet at a fixed place and collect a fixed amount of money. After this collected amount of money is auctioned among the members. the collected amount of money is given to that member who bids the highest amount in the auctions.This type of chit funds are also run by some registered financial institutions or some friends or between relatives in group together. Cit funds plans running in the country are of various types and with different objectives.