Important Questions Class 11 Economics Indian Economic Development

Important Questions Class 11 Economics Indian Economic Development 

Economics is a crucial and high scoring subject for Class 11. Students will understand what goes on in the world and pick up on how the big and developed economies function. The past situations greatly influence the economy’s current condition, and to understand the present context, it is important to understand what shaped the economic conditions in the preceding years. In the context of the Indian economy, there were a lot of pivotal changes and situations that it had to go through to reach the position at which it is today. Students are the future changemakers; hence, they need to be aware of and sensitised about the issues that the Indian economy faces and how to critically analyse and provide solutions for the same. As this subject holds such importance, students must get a head start on their preparations by reviewing the Important Questions for Class 11 Economics Indian Economic Development.

Economics can be quite an interesting subject to study once students clearly understand the crucial concepts. And to help students get a deeper insight into the subject of Economics, Extramarks has prepared the Important Questions Class 11 Economics Indian Economic Development, which will put down in great detail, all the crucial aspects of the Indian economy and its development. These solutions are prepared by industry experts in an easy-to-understand language so that students can easily understand the important aspects of each chapter. Students can also rely on the solutions, which are updated regularly according to the latest CBSE guidelines and syllabus. Students can achieve good marks in their upcoming examination sessions with trustworthy and reliable study resources.

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Important Questions Class 11 Economics Indian Economic Development Chapter-Wise Solutions

Class 11 Economics Indian Economic Development Important Questions provide students with in-depth information about various topics related to the Indian economy. Knowing about these topics will help students develop a preliminary understanding of the macroeconomic factors that shape the economy. The subject will cover the Indian economy’s journey from the eve of independence till the introduction of  LPG or the liberalisation, privatisation, and globalisation policies introduced in 1991. Along with this, students will also understand our economy’s current and ongoing challenges and have a deeper insight into the various elements that can help the Indian economy grow.It will include the formulation of human capital, the development of rural areas, employment facilities, the infrastructure of the country, and a focus on environmental and sustainable development.  Also, drawing in comparisons from our developed neighbouring economies.

An overview of all the chapters included in the Important Questions Class 11 Economics Indian Economic Development is provided:

Chapter 1: Indian Economy On The Eve Of Independence

An economy is a system of interrelated activities that involve the creation, transfer, exchange, and consumption of goods and services. An economy is shaped by culture, values, education, technical advancement, history, and social and political organisations. One needs to look back at the past to comprehend why the economy is in its current position. Understanding the current situation of the Indian economy and predicting its future requires understanding the post-independence economy. Chapter 1 thus holds immense importance in the curriculum of Class 11 Economics. Students will study the state of the Indian economy in 1947 and comprehend the factors that led to the underdevelopment and stagnation of the economy.

Chapter 2: Indian Economy 1950-1990

Post-independence, the leaders of the Indian economy had to choose an economic system that would be appropriate for our country, considering its current situation. Following this decision, the government was also required to set specific goals for the Indian economy.These were the eminent five-year plans. The five-year plans laid the groundwork for achieving economic development within India.This chapter is important for students as it explains in detail the goals of the five-year plans understands the different development policies for agriculture and industrial sectors, and critically analyses a regulated economy. Students must not miss out on learning this chapter.

Chapter 3: Liberalisation, Privatisation And Globalisation: An Appraisal

After 1947, India adopted a mixed economic structure. The Indian government implemented reforms to impose different laws and norms that would control and regulate the economy. It had the effect of impeding India’s economic expansion and growth. By 1991, India had reached a point of economic distress and could not afford its imports. At that time, the nation adopted the revolutionary policies of privatisation, liberalisation, and globalisation.

Students are given a thorough explanation of these reforms and the procedures used to implement them in Chapter 3.It also explains the effects that globalisation had on India and the effects that the reforms had on various sectors of the Indian economy.

Chapter 4: Poverty

The provision of basic minimum needs and the elimination of poverty continue to be the major aims of an independent India. Chapter 4 is important for students as it brings to light the various aspects that surround the issue of poverty. The poor lack access to high-quality education and cannot learn skills that will increase their income. Additionally, the poor are denied access to healthcare. Poor people are the main targets of caste, religion, and other forms of discrimination.

Students, while studying this chapter, will get a deeper insight into the various attributes of poverty, understand the dimensions related to poverty, and study carefully about the various poverty alleviation programmes that the government introduces.

Chapter 5: Human Capital Formation In India

A monumental factor that results in the development of an economy is its human resources. It is essential to develop quality human resources that will drive the economy’s growth, expansion, and development. An individual’s ability to generate money is increased by education and health, as well as several other factors like on-the-job training, knowledge of the labour market, and migration. This increased human productivity, or human capital, contributes significantly to raising labour productivity, innovation, and the capacity to adopt new technology. Chapter 5 of Class 11 Economics helps students understand the human capital formation and human development and look closer at the healthcare and educational facilities that are required to be provided by the government.

Chapter 6: Rural Development

An economy can grow and thrive not only as urban areas develop but also as rural areas develop. Even though people work in farm and non-farm-related fields, most people in rural areas are employed in agriculture. Because many individuals in the agricultural sector still live in utter poverty, rural area development is important to an economy. It suggests that for an economy to flourish, people working in a variety of rural occupations need assistance to increase the productivity of their businesses. Students also understand the importance of diversification required in rural areas into sectors such as animal husbandry, fisheries, horticulture, etc.

Chapter 7: Employment: Growth, Informalisation And Other Issues

Work is a vital part of our lives as people and as members of society. People work to ‘earn’ a living. Working provides a sense of self-worth and allows us to connect meaningfully with each other. By participating in diverse economic activities, every working person actively contributes to the national income and, subsequently, to the nation’s development. Students need to thoroughly understand Chapter 7 as it explains crucial concepts related to employment. Chapter 7 details economic activity, workers, the workforce, and unemployment. It also analyses the difference between men’s and women’s participation patterns.

Chapter 8: Infrastructure

What differentiates better-performing states from lagging-performance states is the condition of the infrastructure present there. The infrastructure supports the primary areas of industrial and agricultural output and domestic and international trade and commerce. These include infrastructures like roads, railways, ports, airports, dams, power plants, oil and gas pipelines, and telecommunication facilities, the nation’s educational system like schools and colleges, health system like hospitals, a sanitary system like clean drinking water facilities, and a monetary system like banks, insurance, and other financial institutions. Students need a thorough understanding of this chapter as it explains the main challenges India faces with respect to infrastructure and the role it plays in infrastructural development.

Chapter 9: Environment And Sustainable Development

The environment is crucial and primary to the economic development of any economy. The environment supplies the nation’s industry with essential raw resources and assimilates the waste that industrial units produce. For many years, environmental protection has been sacrificed for economic expansion. Numerous resources have run out, and the environment cannot absorb the garbage being produced. Unfavourable environmental effects have substantial opportunity costs. Students need to be sensitised about the problems that reckless industrialisation has brought forward and connect environmental concerns to the broader sustainable development framework.

Chapter 10: Comparative Development Experiences Of India And Its Neighbours

Over the last two decades, the economic revolution that has occurred in several countries worldwide, owing partly to the globalisation process, has had both short-term and long-term consequences for each country, including India.  The main goal for nations has been to implement various measures to enhance their domestic economies. Chapter 10 examines the development strategies of India’s neighbours, China and Pakistan, and draws comparisons in the stages of development of each country.

Benefits of Solving Important Questions Class 11 Economics Indian Economic Development

Extramarks are resources that students can use to help them prepare for exams.The Economics and Indian Economic Development Class 11 Important Questions is a resource that provides an easy way to learn, practice, and revise important concepts that students learn in class.A quick revision of the core concepts will help students speed up preparation and give them ample time to revise other important study resources such as CBSE sample papers, past years’ question papers, etc.

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  • The important questions and solutions list is prepared to keep the latest CBSE guidelines and syllabus in mind so that students can access the latest material.

At Extramarks, we understand the importance of answering critical questions, and we take our responsibility seriously in providing the best resource to students and assisting them in achieving excellent grades. Students in classes one through twelve can find comprehensive learning resources with Extramarks. Our website is filled with useful information, important questions, and solutions. To access all of the resources in our collection, students must register. It assists students in accelerating their learning and improving their academic performance through revisions, making them aware of their mistakes through guided practice, and assisting them in achieving the best outcomes.

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Q.1 Answer the following questions with the help of given production possibility schedule.

a) Calculate marginal opportunity cost.

b) What will be the shape of PPC for the given schedule

c) Why PPC is concave to the origin

Combinations Good-X Good-Y MOC
A 5 30 2
B 10 20 _
C 15 10 _

Marks:4
Ans

a) 2, 2

b) The shape of PPC will be downward sloping straight line curve in the given case.

c) PPC is concave to the origin because of increasing marginal opportunity cost. Initially, when the resources are transformed from one good to another, the least efficient resources are transferred from one to the production of another good. So the loss of production is least. Gradually, the rate of the sacrifice of one good to increase the production of another good increase with the production of every additional unit of the latter commodity. Thus, the marginal opportunity cost increases.

Q.2 What will be the impact of the following cases on PPC

a) Improvement of technology of good-x.

b) The decrease in the resources required for the production of good-y.

c) A natural calamity occurred in the country.

d) Growth in resources

Marks:4
Ans

a) Improvement of technology of good-x results in rotation on the x-axis of PPC.

b) A decrease in the resources required for the production of good-y. leads to an upward rotation on the y-axis of PPC.

c) Natural calamity causes a decrease in the resources of the country. When the resources of a country decrease, its PPC shifts leftward.

d) The growth in resources causes a rightward shift in PPC.

Q.3 How are the central problems solved in the capitalist economy and the socialist economy

Marks:4
Ans

Capitalist Economy: Capitalist economy is also termed as a free economy in which there is no interference of the government. In this type of economy, the decision making is done by the principle of price mechanism which is done on the basis of market forces of demand and supply. The production activity is carried out with the objective of profit maximization. Consumption is carried out with the objective of maximum satisfaction. Similarly, the decision of the technique of production is based on the least cost combination.

Socialist Economy: In a centrally planned economy, all economic activities are decided by the Central Planning Authority or the Government. It is the Government/planning Authority that has to decide about the allocation of resources for manufacturing, agriculture, defence, etc. The government decides what to produce, how to produce, and for whom to produce. Social welfare is the prime consideration behind the allocation of resources.

Q.4 Explain the central problem of the distribution of goods.

Marks:4
Ans

The problem of distribution goods is related to the problem of choice between different ways of functional and physical distribution of output between different sectors and individuals in the economy. The functional distribution of output represents the distribution of factor income among the various factors of production (land, labour, capital, and entrepreneurship). On the other hand, the physical distribution of output represents the distribution of output among various sectors of the economy. For example, an economy has to make a choice between the equal and unequal distribution of income.

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FAQs (Frequently Asked Questions)

In Class 11 Economics, the book Indian Economic Development includes ten chapters. The curriculum is set so that students get a deeper understanding of the past conditions that shaped India’s economic condition and the current state of economic development, drawing important comparisons with the neighbouring economies of China and Pakistan with similar development strategies.

A special economic zone (SEZ) is a region of a nation that has distinct economic rules from other parts of the same nation. Economic rules in SEZs are generally favourable to attracting foreign direct investment (FDI). Any investment by a company or individual into commercial interests in another country is referred to as an FDI.