CBSE Class 11 Economics Economic Indian Economy Set B

CASE STUDY-1

Criticism on the effects of the green revolution include the cost for many small farmers using HYV seeds, with their associated demands of increased irrigation systems and pesticides. A case study is found in India, where farmers are buyingMonsanto BT cotton seeds—sold on the idea that these seeds produced ‘non natural insecticides’. In reality, they need to stillpay for expensive pesticides and irrigation systems, which might lead to increased borrowing to finance the change fromtraditional seed varieties. Many farmers have difficulty in paying for the expensive technologies ,especially if they have a badharvest. These high costs of cultivation push rural farmers to take out loans—typically at high interest rates. Over-borrowing commonly entraps farmers into a cycle of debt.On top of this, India’s liberalized economy further exacerbates the farmers’s economic conditions. Indian environmentalist Vandana Shiva writes that this is the “second Green Revolution”. The first Green Revolution, she suggests, was mostlypublicly funded (by the Indian Government).Farmer’s financial issues have become especially apparent in Punjab, where its rural areas have witnessed an alarming rise insuicide rates. Excluding the countless unreported cases, there has been estimated to be a 51.97% increase in the number ofsuicides in Punjab in 1992–93, compared to the recorded 5.11% increase in the country as a whole. According to a 2019 Indian news report, indebtedness continues to be a grave issue affecting Punjabi people today, demonstrated by the more than900 recorded farmer committed suicide in Punjab in the last two years.

Questions:

Question: The green revolution include the cost for many small farmers using ________ seeds, with their associated demands of increased irrigation systems and pesticides.
Answer: HYV

Question: There has been estimated to be a 51.97% increase in the number of suicides in Punjab in 1992–93. (True or False).
Answer: True

Question: This new Green Revolution, she says, is driven by private (and foreign) interest—notably MNCs like Monsanto—as encouraged by the:
(a) Communism context
(b) Liberal context
(c) Neoliberal context
(d) None of these
Answer: C

Question: According to a 2019 Indian news report, indebtedness continues to be a grave issue affecting Punjabi people today, demonstrated by the more than ____ recorded farmer committed suicide in Punjab in the last two years.
Answer: 900

CASE STUDY-2

A plan spells out how the resources of a nation should be put to use. It should have some general goals as well as specific objectives which are to be achieved within a specified period of time; in India plans were of five years duration and were called five year plans (we borrowed this from the former Soviet Union, the pioneer in national planning). Our plan documents upto the year 2017 not only specify the objectives to be attained in the five years of a plan but also what is to beachieved over a period of twenty years. This long-term plan is called ‘perspective plan’. The five year plans were supposed to provide the basis for the perspective plan.

Questions:

Question: When did India give its first five year plan?
Answer: 1951

Question: Planning commission, the erstwhile central planning authority in the country, has been replaced by____________
Answer: National institution for transforming India Aayog

Question: ‘Government decides what goods are to be produced in accordance with the needs of society’. Under what type of economic system does this take place?
Answer: Socialist economy.

Question: When was Indian planning commission constituted?
(a) 6th August 1952
(b) 15th March 1950
(c) 15th August 1947
(d) 1st April 1997
Answer: B

CASE STUDY-3

The Green Revolution, or the Third Agricultural Revolution, is the set of research technology transfer initiatives occurring between 1950 and the late 1960s, that increased agricultural production worldwide, beginning most markedly in the late 1960s. The initiatives resulted in the adoption of new technologies, including High-Yielding Varieties (HYVs) of cereals, especially dwarf wheat and rice. It was associated with chemical fertilizers, agrochemicals, and controlled water-supply (usually involving irrigation) and newer methods of cultivation, including mechanization. National Bank for Agriculture and Rural Development is an apex development finance institution fully owned by Government of India. The bank has been entrusted with “matters concerning policy, planning, and operations in the field of credit for agriculture and other economic activities in rural areas in India”

Questions:

Question: _____________ is Known as Father of Green Revolution in India. (MS Swaminathan/Vikram Sarabhai).
Answer: MS Swaminathan

Question: NABARD was established in _________________ . (1982/1985)
Answer: 1982

Question: The rural banking structure in India consists of a set of multi-agency institutions. __________ (RRB / SIDBI) is expected to dispense credit at cheaper rates for agricultural purposes to farmers
Answer: RRB

Question: Which were the areas benefitted from Green Revolution
Answer: Wheat and Rice

CASE STUDY-4

The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. The twenty-point programme was launched on 14 January 1982. It was followed from 1974 to 1979. The Minimum Needs Programme (MNP) was introduced in the first year of the Fifth Five-Year Plan (1974–78). The objective of the programme is to provide certain basic minimum needs and thereby improve the living standards of the people. It is prepared and launched by D.P.Dhar

Questions:

Question: When was fifth five year plan started?
Answer: 1974

Question: What were the main objectives of the plan?
Answer: Employment and poverty alleviation

Question: When did Twenty point programme launched?
Answer: 1975

Question: What was the difference between targeted growth and actual growth rate?
Answer: 0.6%

CASE STUDY-5

India which appears to have been pushed back to being the world’s 6th biggest economy in 2020, will again overtake the UK to become the fifth largest in 2025 and ace to the third spot by 2030, a think tank said on Saturday. India had overtaken the UK in 2019 to become 5th largest economy in the world but has been relegated to 6th spot in 2020.

Questions:

Question: Which of the following is referred as the Think Tank of India?
(a) Niti Ayog of India
(b) National Development Council
(c) NABARD
(d) IDBI
Answer: A

Question: The idea of Five Year Plans was borrowed from __________.
(a) The USA
(b) Australia
(c) Soviet Union
(d) Denmark
Answer: C

Question: The one of the reasons for Indian Economy to be relegated in 2020 :
(a) Health Infrastructure
(b) COVID 19 Pandemic
(c) Framework of Planning
(d) All of the Above
Answer: B

Question: _____________ finally approves the draft of Indian Plans.
(a) RBI
(b) National Development Council
(c) AYUSH Ministry
(d) IDBI
Answer: B

CASE STUDY-6

The land ceiling legislation also faced hurdles. The big landlords challenged the legislation in the courts, delaying its implementation. They used this delay to register their lands in the name of close relatives, thereby escaping from the legislation. The legislation also had a lot of loopholes which were exploited by the big landholders to retain their land. Land reforms were successful in Kerala and West Bengal because these states had governments committed to the policy of land to the tiller. Unfortunately other states did not have the same level of commitment and vast inequality in landholding continues to this day.

Questions:

Question: Change in the ownership of landholdings, is known as ______________ (land ceiling/land reforms).
Answer: Land reforms

Question: Mention any one challenge faced by land ceiling legislation.
Answer: (a) The big landlords challenged the legislation in the courts, delaying is implementation.
(b) The landlords used the delay to register their lands in the name of close relatives, thereby escaping from the legislation.

Question: Name the policy the two state governments adopted to make Land reforms successful.
Answer: Land to the tiller.

Question: What is land ceiling?
Answer: Land ceiling means fixing the maximum size of land which could be owned by an individual.

CASE STUDY-7

In a country, all the means of production are owned by top industrialists of the private sector, they are free to take all kinds of economic decisions. The government does not interfere with the movement of goods and services in the country. The GDP is rapidly accelerating though only the rich people are happy.

Questions:

Question: The type of economy defined in this scenario is _________ economy.
Answer: Capitalist

Question: There is _____________ ownership of the means of production.
Answer: Private

Question: In this economy, _____________ are maximised.
Answer: Profits

Question: With reference to the passage, state one principal demerit of this type of economy.
Answer: Growth without social justice

CASE STUDY-8

Usually the economy of the country is based on who shall Answer: the questions like what to produce? How to produce? How to distribute what is produced? These questions when Answer: ed by the market forces mean a capitalist economy, when Answer: ed by government then a socialist economy and a mixed economy is where jointly these questions are Answer: ed. India opted for socialism as Indian leaders were motivated by the success of Soviet Union’s planning. Indian planners were well aware of the shortage of private capital and lack of incentive for the private sector to function in the social sector. Comprehensive planning for the country was made by the government with specific objectives of five-year plans. Hence, planning was initiated to make the public sector to work within the basic economic framework, and private sector firms were encouraged towards economic growth.

Questions:

Question: Indian planners after independence were attracted to which Economy System ?
a) Socialist
b) Capitalist
c) Market
d) None
Answer: A

Question: India’s First Five Year Plan was launched in the year 1951 (True/ False)
Answer: False

Question: India has a mixed economy with a _____________ .
a) Small public sector
b) Large public sector
c) Large private sector
d) None of these
Answer: C

CASE STUDY-9

Some economists are of view that subsidies do not allow prices to indicate the supply of a good.when electricity and water are provided at a subsidized rate or free , they will be used wastefully without any concern for their scarcity. Farmers will cultivate water intensive crops if water is supplied free, although the water resources in that region may be scarce and such crops further deplete , if water is priced to reflect scarcity, farmers will cultivate crops according to region . Fertilizer and pesticide subsidies can be harmful to environment. subsidies provide an incentive for wasteful use of resources.

Questions:

Question: Define term Subsidy.
Answer: It is an economic benefit, direct or indirect, granted by the government.

Question: Highlight the basic objective of providing subsidies.
Answer: Incentive for adoption of new HYV technology .

Question: The government should continue with providing subsidies to farmers because ____________.
Answer: it’s risky

Question: How subsidies can be linked as threat to environment?
Answer: If these are provided for fertilizers and pesticides then farmers will use them in abundance which will be dangerous for environment

CASE STUDY-10

The Green Revolution started in 1965 with the first introduction of HYV seeds in Indian agriculture. This was coupled with better and efficient irrigation and the correct use of fertilizers to boost the crop. The end result of the Green Revolution was to make India self-sufficient when it came to food grains. After 1947 India had to rebuild its economy. Over three-quarters of the population depended on agriculture in some way. But agriculture in India was faced with several problems. Firstly, the productivity of grains was very low. And India was still monsoon dependent because of lack of irrigation and other infrastructure. There was also an absence of modern technology. And India had previously faced severe famines during the British Raj, who had only promoted cash crops instead of food crops. The idea was to never depend on any other country for food sufficiency. So in 1965, the government with the help of Indian geneticists M.S. Swaminathan, known as the father of Green Revolution, launched the Green Revolution. The movement lasted from 1967 to 1978 and was a great success.

Questions:

Question:Green revolution is related with _____________ .
a) modern technology
b) better irrigation facilities
c) HYV seeds
d) all of the above
Answer: A

Question: _____________ known as the father of green revolution.
Answer: Indian geneticists M.S. Swaminathan

Question: Britishers encouraged Indian farmers to grow food crops. (true/false)Give reason.
Answer: False, they forced farmers to grow cash crops

Question: What was the need of green revolution?
Answer: To make India self-sufficient