TS Inter 2nd Year – Economics Previous Paper 2023
Here are the answers to the questions in the provided Economics Paper II (English Version):
SECTION-A (3×10=30)
Note: Answer ANY THREE of the following questions in 40 lines each. Each question carries TEN marks.
1. Describe the causes for low productivity in agriculture.
Answer:
Low productivity in agriculture is a persistent challenge in many developing countries, including India. Several factors contribute to this issue:
1. Land Fragmentation: Small and fragmented landholdings limit the adoption of modern farming techniques and mechanization, leading to lower yields.
2. Lack of Irrigation: Inadequate irrigation facilities make agriculture heavily dependent on rainfall, leading to crop failures during droughts.
3. Limited Access to Credit and Inputs: Farmers often lack access to affordable credit and quality inputs like seeds, fertilizers, and pesticides, hindering their ability to invest in productive farming.
4. Poor Infrastructure: Inadequate roads, transportation, and storage facilities increase the cost of transporting produce to markets and lead to post-harvest losses.
5. Lack of Skill Development: Farmers often lack the knowledge and skills required for modern agricultural practices, including crop rotation, pest management, and soil conservation.
6. Market Imperfections: Farmers often face price volatility and low prices for their produce due to imperfect market conditions and lack of access to market information.
7. Lack of Diversification: Over-reliance on a few crops makes farmers vulnerable to price fluctuations and natural disasters.
8. Environmental Factors: Soil degradation, water scarcity, and climate change pose significant challenges to agricultural productivity.
Addressing these issues requires a multi-pronged approach, including land consolidation, improving irrigation infrastructure, providing access to credit and inputs, developing rural infrastructure, promoting skill development, strengthening market linkages, and promoting diversification.
2. Briefly explain the development and welfare programmes of the Government of Telangana.
Answer:
The Government of Telangana has implemented numerous development and welfare programs aimed at improving the lives of its citizens. Some key programs include:
1. Rythu Bandhu: A flagship program providing financial assistance to farmers to support agricultural activities.
2. KCR Kits: A scheme providing comprehensive maternity kits to pregnant women and lactating mothers.
3. Kanti Velugu: A program for free eye check-ups and surgeries for people of all ages.
4. Mission Bhagiratha: A massive project to provide safe and adequate drinking water to all households in the state.
5. Kalyana Lakshmi/Shadi Mubarak: Financial assistance to women upon marriage.
6. Dalit Bandhu: A program providing financial assistance to Dalit families for their economic empowerment.
7. KCR Farmer Market: A network of markets providing farmers with a platform to sell their produce directly to consumers at fair prices.
8. Haritha Haram: A greening initiative aimed at increasing forest cover and improving the environment.
These programs have had a significant impact on improving the livelihoods of people in Telangana, especially in rural areas.
3. Examine the problems of small scale industries in India.
Answer:
Small scale industries (SSIs) play a crucial role in the Indian economy, providing employment and contributing to GDP. However, they face several challenges:
1. Access to Finance: SSIs often struggle to access adequate and affordable credit from banks and financial institutions.
2. Limited Access to Markets: Lack of market information and access to distribution channels hinder the growth of SSIs.
3. Competition from Large Industries: SSIs often face competition from large industries with better resources and economies of scale.
4. Low Productivity: SSIs often lack access to modern technology and skilled labor, leading to low productivity.
5. Lack of Infrastructure: Inadequate infrastructure, such as power supply and transportation, hampers the growth of SSIs.
6. Government Regulations: Complex and burdensome government regulations can hinder the growth of SSIs.
7. Lack of Skill Development: Lack of access to skill development programs limits the productivity and competitiveness of SSIs.
Addressing these challenges requires a multi-pronged approach, including improving access to finance, strengthening market linkages, providing access to technology and infrastructure, simplifying government regulations, and promoting skill development.
4. Analyze critically the characteristics of developing economies with special reference to India.
Answer:
Developing economies are characterized by several features, including:
1. Low Per Capita Income: Developing economies have low per capita income compared to developed economies.
2. High Population Growth: Population growth rates are often high in developing economies, putting pressure on resources and infrastructure.
3. High Poverty Rates: Poverty is a significant challenge in developing economies, with a large proportion of the population living below the poverty line.
4. Dependence on Agriculture: Agriculture is often the primary source of employment and income in developing economies.
5. High Unemployment and Underemployment: Unemployment and underemployment are common problems in developing economies.
6. Low Levels of Industrialization: Industrialization is often limited in developing economies, leading to dependence on primary sector activities.
7. High Inequality: Income and wealth inequality are often high in developing economies.
8. Vulnerability to External Shocks: Developing economies are often vulnerable to external shocks, such as fluctuations in commodity prices and global economic downturns.
India shares many of these characteristics. It has a low per capita income, high population growth, high poverty rates, and a large agricultural sector. While India has made significant progress in industrialization, it still faces challenges such as unemployment, underemployment, and inequality.
5. How do you reduce inequalities in the distribution of income and wealth?
Answer:
Reducing inequalities in the distribution of income and wealth requires a multi-pronged approach:
1. Progressive Taxation: Implementing progressive taxation policies, where higher income earners pay a higher percentage of their income as tax.
2. Social Welfare Programs: Providing social welfare programs, such as subsidized education, healthcare, and housing, to benefit low-income households.
3. Minimum Wage Legislation: Implementing minimum wage laws to ensure that workers receive a fair wage.
4. Land Reforms: Implementing land reforms to ensure equitable distribution of land among farmers.
5. Promoting Inclusive Growth: Promoting economic growth that benefits all segments of society, not just the wealthy.
6. Strengthening Labor Unions: Empowering labor unions to negotiate better wages and working conditions for workers.
7. Reducing Corruption: Reducing corruption in government and public institutions to ensure that resources are used efficiently and equitably.
8. Promoting Education and Skill Development: Investing in education and skill development to equip people with the skills needed to participate in the workforce and earn a decent living.
Implementing these policies requires a strong political will and commitment to social justice.
SECTION-B (8×5=40)
Note: (i) Answer ANY EIGHT of the following questions in 20 lines each. (ii) Each question carries FIVE marks.
6. Write a note on NITI Aayog.
Answer:
NITI Aayog, or the National Institution for Transforming India, is a policy think tank of the Government of India, created in 2015. It replaced the Planning Commission, which had been the central body for economic planning in India since 1950.
NITI Aayog’s primary functions include:
- Policy and Program Formulation: NITI Aayog provides strategic and technical advice to the Central and State Governments on key policy issues and programs.
- Regional Cooperation: It promotes cooperative federalism by fostering collaboration among states and regions.
- Knowledge and Innovation: NITI Aayog facilitates the creation and dissemination of knowledge and innovation to drive development.
- Monitoring and Evaluation: It monitors and evaluates the progress of government programs and provides feedback to improve their effectiveness.
NITI Aayog is structured as a non-constitutional body with a Governing Council chaired by the Prime Minister. It also has a Vice-Chairman and ex-officio members, including Chief Ministers of states and other eminent personalities.
7. Analyze the difference between GATT and WTO.
Answer:
The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade from 1948 to 1994. It aimed to reduce trade barriers, such as tariffs and quotas, through rounds of negotiations.
The World Trade Organization (WTO) was established in 1995 to replace GATT. It is a more formal and powerful institution with broader scope and stronger enforcement mechanisms. Key differences between GATT and WTO include:
- Scope: GATT focused primarily on trade in goods, while WTO covers a wider range of issues, including trade in services, intellectual property rights, and investment.
- Dispute Settlement: GATT had a weak dispute settlement mechanism. WTO has a more robust and binding dispute settlement process.
- Enforcement: WTO has stronger enforcement powers, including the ability to impose trade sanctions on countries that violate its rules.
- Membership: GATT was a provisional agreement, while WTO is a permanent international organization with a legal personality.
8. Explain the National Health Policy (NHP), 2017.
Answer:
The National Health Policy (NHP), 2017 is a comprehensive policy framework aimed at improving the health and well-being of all Indians. Key features of the NHP include:
- Universal Health Coverage: The policy aims to provide affordable and accessible healthcare to all citizens.
- Primary Healthcare: Strengthening primary healthcare services is a core component of the policy.
- Human Resources for Health: The policy focuses on increasing the number and improving the quality of healthcare professionals.
- Health Promotion and Prevention: The policy emphasizes health promotion and disease prevention through various initiatives.
- Ayush Systems: The policy recognizes the importance of traditional systems of medicine like Ayurveda, Yoga, and Naturopathy.
- Health Financing: The policy seeks to increase public health expenditure and improve the efficiency of healthcare financing.
The NHP, 2017 provides a roadmap for improving the health status of the Indian population and addressing the challenges faced by the healthcare system.
9. What are the major features of Industrial Policy Resolution, 1991?
Answer:
The Industrial Policy Resolution, 1991 was a landmark policy that marked a shift from the previous inward-looking approach to a more market-oriented approach to industrial development. Key features of the policy include:
- Deregulation: The policy aimed to deregulate industries and reduce government control.
- Privatization: The policy encouraged the privatization of public sector enterprises.
- Foreign Investment: The policy opened up the economy to foreign investment.
- Competition: The policy aimed to promote competition among industries.
- Focus on Infrastructure: The policy emphasized the importance of developing infrastructure to support industrial growth.
The Industrial Policy Resolution, 1991 paved the way for economic liberalization and has been instrumental in driving India’s economic growth in recent decades.
10. Why should we protect the environment?
Answer:
Protecting the environment is crucial for the survival and well-being of all living beings, including humans. Here are some key reasons why we should protect the environment:
- Clean Air and Water: A healthy environment provides clean air and water, which are essential for human health.
- Biodiversity: Protecting the environment helps preserve biodiversity, which is essential for the stability of ecosystems.
- Climate Change: Protecting the environment is crucial for mitigating climate change and its impacts.
- Natural Resources: The environment provides us with natural resources, such as forests, minerals, and water, which are essential for our survival and development.
- Quality of Life: A healthy environment contributes to a better quality of life, providing us with opportunities for recreation and enjoyment.
Protecting the environment is a shared responsibility that requires collective action from individuals, communities, governments, and businesses.
11. What are the causes of rural indebtedness?
Answer:
Rural indebtedness is a major problem in many developing countries, including India. Some of the main causes of rural indebtedness include:
- Low Incomes: Low agricultural incomes and lack of alternative sources of income force farmers to borrow to meet their basic needs.
- High Input Costs: The cost of agricultural inputs, such as seeds, fertilizers, and pesticides, has been rising, putting a strain on farmers’ finances.
- Lack of Access to Credit: Farmers often lack access to formal credit from banks and financial institutions, forcing them to rely on informal sources of credit, which often charge high interest rates.
- Natural Disasters: Natural disasters, such as droughts and floods, can destroy crops and livestock, leading to losses and indebtedness.
- Market Fluctuations: Price fluctuations in agricultural commodities can lead to income losses and indebtedness.
- Social Customs: Social customs, such as dowry and weddings, can also contribute to rural indebtedness.
Addressing rural indebtedness requires a multi-pronged approach, including increasing agricultural productivity, providing access to affordable credit, strengthening market linkages, and improving social safety nets.
12. State the objectives of agricultural pricing policy.
Answer:
Agricultural pricing policy aims to achieve several objectives:
- Ensuring remunerative prices to farmers: The primary objective is to provide farmers with remunerative prices for their produce to ensure their income and encourage agricultural production.
- Price stability: The policy seeks to stabilize prices of agricultural commodities to protect farmers from price fluctuations and ensure fair returns.
- Consumer welfare: The policy aims to ensure fair prices for consumers while also protecting farmers’ interests.
- Food security: The policy plays a crucial role in ensuring food security for the nation by maintaining a stable supply of food grains.
- Economic growth: The policy contributes to economic growth by promoting agricultural development and increasing farmers’ income.
13. Write a brief note on education profile of the state.
Answer:
The education profile of a state reflects the status of education in terms of literacy rates, enrollment ratios, school infrastructure, and quality of education. It provides insights into the human capital development and future prospects of the state. Key indicators of an education profile include:
- Literacy Rates: The percentage of the population that can read and write.
- Gross Enrollment Ratio (GER): The ratio of students enrolled in a particular level of education to the total population of that age group.
- Dropout Rates: The percentage of students who drop out of school at various levels.
- Teacher-Student Ratio: The ratio of teachers to students in schools.
- School Infrastructure: Availability and quality of schools, classrooms, and other facilities.
- Quality of Education: The level of learning outcomes and academic performance of students.
14. Discuss the importance of Kaleshwaram project.
Answer:
The Kaleshwaram Project is a massive irrigation project in Telangana, India. It aims to divert water from the Godavari River to irrigate drought-prone areas in the state. The project is considered important for several reasons:
- Irrigation: It will provide irrigation to millions of acres of land, boosting agricultural production and improving food security.
- Drinking Water: The project will also supply drinking water to many areas facing water scarcity.
- Hydropower Generation: The project will generate hydropower, contributing to the state’s energy needs.
- Industrial Development: The project will facilitate industrial development by providing water for industrial use.
- Flood Control: The project will also help in flood control by regulating water flow in the Godavari River.
15. Examine the different types of unemployment.
Answer:
Unemployment refers to the state of being without a job when actively seeking one. There are different types of unemployment, including:
- Cyclical Unemployment: This type of unemployment is caused by fluctuations in the business cycle. During economic downturns,
demand for labor falls, leading to job losses. - Structural Unemployment: This type of unemployment arises due to structural changes in the economy, such as technological advancements or changes in consumer preferences.
- Frictional Unemployment: This type of unemployment occurs when people are in the process of transitioning between jobs, such as when they are searching for a new job after quitting or being laid off.
- Seasonal Unemployment: This type of unemployment is associated with seasonal variations in demand for labor, such as in the tourism or agriculture sectors.
- Disguised Unemployment: This type of unemployment is prevalent in agriculture, where more people are employed than are actually needed to produce the output.
16. Discuss the consequences of the problem of poverty.
Answer:
Poverty has far-reaching consequences for individuals, communities, and society as a whole. Some of the major consequences of poverty include:
- Malnutrition and Hunger: Poverty often leads to malnutrition and hunger, affecting physical and mental development.
- Ill-health: Poverty can limit access to healthcare, leading to poor health outcomes and increased vulnerability to diseases.
- Limited Education: Poverty can restrict access to quality education, limiting opportunities for upward mobility.
- Social Exclusion: Poverty can lead to social exclusion and marginalization, making it difficult for people to participate fully in society.
- Environmental Degradation: Poverty can drive environmental degradation as people resort to unsustainable practices to meet their basic needs.
- Crime and Violence: Poverty can increase the incidence of crime and violence, as people may resort to illegal activities to survive.
17. What are the major objectives of LIC?
Answer:
LIC, or Life Insurance Corporation of India, is a state-owned insurance company. Its major objectives include:
- Providing life insurance and related services: LIC offers a wide range of life insurance products, including term insurance, endowment plans, and pension plans.
- Mobilizing savings: LIC plays a crucial role in mobilizing savings from the public and channeling them into long-term investments.
- Promoting financial inclusion: LIC aims to make insurance accessible to a wider section of the population, including low-income households.
- Nation-building: LIC contributes to nation-building by investing in infrastructure projects and supporting economic development.
- Social security: LIC provides social security to policyholders by offering financial protection in case of unforeseen events.
SECTION-C (15×2=30)
Note: (i) Answer ANY FIFTEEN of the following questions in 5 lines each. (ii) Each question carries TWO marks.
18. TS-iPASS
TS-iPASS is an online platform developed by the Telangana Government to facilitate the delivery of government services to citizens. It aims to streamline and simplify service delivery by integrating various departments and providing a single window access to information and services.
19. Telangana Fibre Grid
Telangana Fibre Grid is a government initiative to provide high-speed internet connectivity to all households in Telangana. It aims to bridge the digital divide and promote digital inclusion by providing affordable and accessible internet services to rural and urban areas.
20. Inclusive growth
Inclusive growth refers to economic growth that benefits all segments of society, not just a select few. It emphasizes reducing inequality and ensuring that the benefits of economic progress are shared equitably among all citizens.
21. Per capita income
Per capita income is the average income earned per person in a country or region. It is calculated by dividing the total income of a country by its population. Per capita income is an important indicator of economic development and living standards.
22. Warehousing facilities
Warehousing facilities are storage spaces used to store goods, such as agricultural produce, industrial products, and raw materials. They play a crucial role in the supply chain by ensuring the availability of goods when needed and reducing wastage.
23. Food Corporation of India (FCI)
The Food Corporation of India (FCI) is a government-owned corporation responsible for procurement, storage, and distribution of food grains in India. It plays a crucial role in ensuring food security by maintaining a buffer stock of food grains and implementing food distribution programs.
24. Green revolution
The Green Revolution refers to a period of significant increases in agricultural productivity in the mid-20th century, primarily due to the introduction of high-yielding varieties of crops, improved irrigation, and the use of fertilizers and pesticides.
25. Balanced regional development
Balanced regional development refers to the equitable distribution of economic growth and development across different regions of a country. It aims to reduce regional disparities and ensure that all regions benefit from economic progress.
26. Economic growth
Economic growth refers to an increase in the production of goods and services in an economy over time. It is typically measured by
27. Sustainable development
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their
28. Types of environment
The environment can be broadly classified into two types:
- Natural Environment: This includes all living and non-living things that occur naturally on Earth, such as air, water, land, plants, and animals.
- Built Environment: This refers to the man-made environment, including structures, infrastructure, and spaces created by humans.
29. FDI
FDI stands for Foreign Direct Investment. It refers to the investment made by a foreign entity in a business enterprise in another country. FDI can take various forms, such as setting up a new subsidiary, acquiring an existing company, or investing in an existing business.
30. Balance of payments
The balance of payments is a record of all economic transactions between a country and the rest of the world over a specific period.
31. Tertiary sector
The tertiary sector, also known as the service sector, includes all economic activities that provide services rather than goods. Examples include education, healthcare, tourism, banking, and transportation.
32. Infrastructure
Infrastructure refers to the basic physical systems of a country or region, such as transportation networks, communication systems, power grids, and water supply systems. It plays a crucial role in economic development and social progress.
33. Liberalisation
Liberalisation refers to the process of reducing government control and intervention in the economy. It involves policies such as deregulation, privatization, and opening up the economy to foreign trade and investment.
34. Extractive industry
An extractive industry is an industry that involves the removal of natural resources from the earth. Examples include mining, oil and gas extraction, and logging.
35. Janani Suraksha Yojana
Janani Suraksha Yojana is a government-sponsored program in India that provides cash incentives to pregnant women and lactating mothers to encourage institutional deliveries and improve maternal and child health.
36. Population explosion
Population explosion refers to a rapid and uncontrolled increase in population. It can lead to various challenges, such as environmental degradation, resource scarcity, and social unrest.
37. Literacy rate
The literacy rate is the percentage of the population aged 15 or above who can read and write. It is an important indicator of human development and social progress.