TS Inter 2nd Year – Economics Previous Paper 2020

SECTION A (3 x 10 = 30)

Note: Answer any three out of the following five questions.

1. Analyze critically the characteristics of developing economies with special reference to India.

Developing economies, also known as emerging economies, exhibit a set of common characteristics that distinguish them from developed economies. These characteristics include:

1. Low Per Capita Income: One of the defining features of developing economies is their low per capita income compared to developed nations. This indicates a lower standard of living and limited economic resources available to the population.

2. High Population Growth: Developing economies often experience rapid population growth, putting a strain on resources and infrastructure. High birth rates and declining mortality rates contribute to this demographic trend.

3. High Poverty Rates: Poverty is a significant challenge in developing economies, with a large proportion of the population living below the poverty line. This can lead to social and economic instability.

4. Dependence on Agriculture: Agriculture typically plays a dominant role in the economies of developing countries, employing a large portion of the workforce. However, low productivity in agriculture can limit economic growth and development.

5. High Unemployment and Underemployment: Unemployment and underemployment are prevalent in developing economies. This can lead to social unrest and hinder economic progress.

6. Low Levels of Industrialization: Industrialization is often limited in developing economies, with a reliance on primary sector activities like agriculture and mining. This limits economic diversification and job creation.

7. High Inequality: Income and wealth inequality are often significant in developing economies, with a small segment of the population controlling a large share of the resources. This can exacerbate social tensions and hinder inclusive growth.

8. Vulnerability to External Shocks: Developing economies are often more vulnerable to external shocks, such as fluctuations in commodity prices, global economic downturns, and climate change.

India as a Developing Economy:

India exhibits many of these characteristics. It has a relatively low per capita income compared to developed nations. Despite significant economic growth in recent decades, poverty and inequality remain significant challenges. A large portion of the population is still dependent on agriculture, and unemployment and underemployment are prevalent. India has also experienced rapid population growth. While industrialization has progressed, the country still faces challenges in diversifying its economy and reducing its dependence on primary sectors.

Critical Analysis:

It is important to note that these characteristics are not static and can change over time. Many developing economies, including India, have made significant progress in addressing these challenges through economic reforms, investments in education and infrastructure, and social development programs. However, further efforts are needed to achieve sustainable and inclusive growth.

2. What are the causes for rapid growth of population in India?

India has experienced rapid population growth in recent decades, driven by a combination of factors:

1. High Fertility Rates: Historically, India has had high fertility rates, with women giving birth to a large number of children. This is influenced by various socio-cultural factors, such as the preference for sons, the role of women in society, and lack of access to family planning methods.

2. Declining Mortality Rates: Advances in healthcare, improved sanitation, and better nutrition have led to a significant decline in mortality rates, especially among infants and children. This has resulted in a larger proportion of the population surviving to reproductive age.

3. Early Marriages: Early marriages, particularly among women, contribute to higher fertility rates as they limit educational and economic opportunities for women.

4. Lack of Access to Family Planning: While family planning programs have been implemented, access to and utilization of contraceptives and other family planning methods remain limited in certain regions due to lack of awareness, availability, and affordability.

5. Poverty and Illiteracy: Poverty and illiteracy are often associated with higher fertility rates. Lack of education and awareness about family planning methods contribute to this.

6. Socio-cultural Factors: In some regions, large family size is still considered a sign of prosperity and social status, contributing to higher fertility rates.

Addressing these issues requires a multi-pronged approach, including:

Promoting family planning: Increasing access to and utilization of contraceptives and other family planning methods.
Improving women’s education and empowerment: Empowering women through education and economic opportunities can lead to lower fertility rates.
Addressing poverty and illiteracy: Implementing programs to reduce poverty and improve access to education can help in controlling population growth.
Raising awareness about family planning: Conducting awareness campaigns to educate people about the benefits of family planning.
Delaying age at marriage: Promoting delayed marriage and childbearing through social and legal interventions.

3. How can you reduce inequalities in the distribution of income and wealth?

Reducing inequalities in the distribution of income and wealth requires a multi-pronged approach:

Progressive Taxation: Implementing progressive taxation policies, where higher income earners pay a higher percentage of their income as tax. This helps to redistribute wealth from the wealthy to the less fortunate.
Social Welfare Programs: Providing social welfare programs, such as subsidized education, healthcare, and housing, to benefit low-income households. These programs can help to improve living standards and reduce poverty.
Minimum Wage Legislation: Implementing minimum wage laws to ensure that workers receive a fair wage and prevent exploitation.
Land Reforms: Implementing land reforms to ensure equitable distribution of land among farmers, which can reduce rural poverty and inequality.
Promoting Inclusive Growth: Fostering economic growth that benefits all segments of society, not just the wealthy. This can be achieved by promoting inclusive industries, supporting small and medium enterprises, and investing in rural development.
Strengthening Labor Unions: Empowering labor unions to negotiate better wages and working conditions for workers.
Reducing Corruption: Reducing corruption in government and public institutions to ensure that resources are used efficiently and equitably.
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.

4. Describe the causes for low productivity in agriculture.

Low agricultural productivity is a persistent challenge in many developing countries, including India. Several factors contribute to this issue:

Land Fragmentation: Small and fragmented landholdings limit the adoption of modern farming techniques and mechanization, leading to lower yields.
Lack of Irrigation: Inadequate irrigation facilities make agriculture heavily dependent on rainfall, leading to crop failures during droughts.
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.
Poor Infrastructure: Inadequate roads, transportation, and storage facilities increase the cost of transporting produce to markets and lead to post-harvest losses.
Lack of Skill Development: Farmers often lack the knowledge and skills required for modern agricultural practices, including crop rotation, pest management, and soil conservation.
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.
Lack of Diversification: Over-reliance on a few crops makes farmers vulnerable to price fluctuations and natural disasters.
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.

5. Critically examine the Industrial Policy Resolution, 1991.

The Industrial Policy Resolution, 1991, marked a significant shift in India’s economic policy. It moved away from the previous inward-looking approach and embraced a more market-oriented model. Key features of the policy include:

Deregulation: The policy aimed to deregulate industries and reduce government control, allowing for greater market competition.
Privatization: The policy encouraged the privatization of public sector enterprises to improve efficiency and competitiveness.
Foreign Investment: The policy opened up the economy to foreign investment, attracting foreign capital and technology.
Competition: The policy aimed to promote competition among industries, leading to better quality products and services.
Focus on Infrastructure: The policy emphasized the importance of developing infrastructure, such as transportation and communication, to support industrial growth.

Impact of the Industrial Policy Resolution, 1991:

Economic Growth: The policy has been credited with driving economic growth in India over the past three decades.
Increased Foreign Investment: It has attracted significant foreign investment, leading to technology transfer and job creation.
Improved Efficiency: Increased competition has led to improved efficiency and quality in many sectors.

Criticisms:

Increased Inequality: Some argue that the policy has led to increased inequality by benefiting large corporations and the wealthy more than the poor.
Job Losses in the Informal Sector: The shift towards a market-oriented economy has resulted in job losses in the informal sector, particularly in agriculture.
Environmental Concerns: The focus on industrial growth has raised concerns about environmental degradation and pollution.

Overall, the Industrial Policy Resolution, 1991, has had a significant impact on the Indian economy. While it has driven economic growth and attracted foreign investment, it is important to address the concerns about inequality and environmental sustainability to ensure that the benefits of economic liberalization are shared by all segments of society.

SECTION B (8 x 5 = 40)

Note: Answer any eight out of the following twelve questions.

6. Examine the different types of unemployment.

Unemployment refers to the situation where individuals actively seeking employment are unable to find work. There are several types of unemployment:

Cyclical Unemployment: This type is caused by fluctuations in the business cycle. During economic downturns, demand for labor falls, leading to job losses. For example, during a recession, businesses may reduce production and lay off workers.
Structural Unemployment: This occurs due to structural changes in the economy, such as technological advancements that make certain skills obsolete. For instance, automation in manufacturing can lead to job losses for workers with traditional skills.
Frictional Unemployment: This is a temporary type of unemployment that occurs when individuals are transitioning between jobs, such as when they are searching for a new job after quitting or being laid off. It also includes people entering the job market for the first time, like recent graduates.
Seasonal Unemployment: This type is associated with seasonal variations in demand for labor, such as in the tourism or agriculture sectors. For example, demand for agricultural labor may be high during planting and harvesting seasons but low during other times of the year.
Disguised Unemployment: This type is prevalent in agriculture, where more people are employed than are actually needed to produce the output. For example, in a family farm, all members may be working, but the additional labor may not significantly increase output.

Understanding these different types of unemployment is crucial for designing effective policies to address the issue. For example, policies to combat cyclical unemployment may focus on stimulating economic growth, while policies to address structural unemployment may focus on retraining and education programs to equip workers with new skills.

7.Write a note on NITI Aayog?

NITI Aayog

NITI Aayog, or the National Institution for Transforming India, is a policy think tank of the Government of India, established in 2015. It replaced the Planning Commission, which had been the central body for economic planning in India since 1950.

Key Functions:

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.

Structure:

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.

Significance:

NITI Aayog aims to foster a more cooperative and collaborative approach to policymaking, emphasizing the role of states in development planning and implementation. It aims to promote innovation and knowledge-based development to address the challenges facing India in the 21st century.

8. Why should we protect the environment?

Protecting the environment is crucial for the survival and well-being of all living beings, including humans. Here are some key reasons:

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.

9. What are the causes of rural indebtedness?

Rural indebtedness is a significant issue in India, driven by various factors:

Low Incomes: Low agricultural incomes and lack of alternative sources of income force farmers to borrow to meet their basic needs and invest in agricultural activities.
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.

10. Explain the shortcomings of agricultural pricing policy.

Agricultural pricing policies aim to ensure fair prices for farmers and consumers, but they often face challenges:

Price Fluctuations: Despite price support mechanisms, prices of agricultural commodities can still experience significant fluctuations due to factors like weather conditions, market demand, and global prices.
Inefficient Procurement: Procurement processes can be inefficient, leading to delays in payments to farmers and storage losses.
Lack of Transparency: Lack of transparency in the pricing mechanism can lead to corruption and exploitation of farmers.
Regional Disparities: Price support mechanisms may not benefit all farmers equally, leading to regional disparities in income.
Impact on Consumers: Price support policies can lead to higher consumer prices for agricultural products.

11. Indicate the measures to solve the problems of small scale industries.

Small scale industries (SSIs) play a crucial role in the Indian economy. Measures to address their challenges include:

Access to Finance: Providing easier access to credit and financial assistance through schemes like MUDRA loans.
Market Access: Strengthening market linkages by improving infrastructure, providing access to market information, and organizing trade fairs.
Skill Development: Promoting skill development programs to enhance the productivity and competitiveness of SSI workers.
Technology Upgradation: Encouraging the adoption of modern technology and machinery to improve efficiency and quality.
Government Support: Providing subsidies, tax incentives, and other forms of government support to promote the growth of SSIs.
Simplifying Regulations: Reducing the burden of government regulations and streamlining procedures to facilitate business operations.

12. Identify the problems in the development of transport sector in India.

The transport sector in India faces several challenges:

Inadequate Infrastructure: Lack of adequate roads, railways, waterways, and airways, especially in rural areas.
Congestion: Severe congestion in urban areas, leading to traffic jams and delays.
Lack of Integration: Poor integration between different modes of transport.
Funding Shortages: Insufficient funding for infrastructure development and maintenance.
Safety Concerns: Road accidents are a major concern, leading to significant loss of life and property.
Environmental Pollution: Transport contributes significantly to air and noise pollution.

13. Examine the arguments in favour of privatization.

Privatization refers to the transfer of ownership and control of public sector enterprises to the private sector. Arguments in favor of privatization include:

Improved Efficiency: Private companies are often more efficient and responsive to market forces than government-owned enterprises.
Reduced Burden on the Government: Privatization can reduce the financial burden on the government by reducing the need for subsidies and bailouts.
Increased Competition: Privatization can increase competition, leading to better quality services and lower prices for consumers.
Technological Upgradation: Private companies are more likely to invest in new technologies and improve efficiency.
Resource Mobilization: Privatization can generate revenue for the government through the sale of public sector assets.

14. Assess the role of international trade in the Indian economy.

International trade plays a crucial role in the Indian economy:

Economic Growth: Trade provides access to a wider market for Indian goods and services, boosting exports and contributing to economic growth.
Technology Transfer: International trade facilitates the transfer of technology and knowledge, leading to improvements in productivity and competitiveness.
Competition: International trade promotes competition among domestic firms, leading to better quality products and services.
Employment Generation: Trade creates employment opportunities in export-oriented sectors.
Foreign Exchange Earnings: Exports generate foreign exchange earnings, which are essential for financing imports and reducing dependence on foreign aid.

However, international trade also presents challenges such as competition from foreign imports and the risk of trade deficits.

15. Describe the education system in Telangana.

The education system in Telangana comprises various levels, including:

Pre-primary Education: Anganwadis and pre-schools provide early childhood education.
Primary Education: Government and private schools offer primary education from Classes 1 to 5.
Secondary Education: Government and private schools offer secondary education from Classes 6 to 10.
Higher Education: Telangana has various universities, colleges, and technical institutions offering undergraduate and postgraduate programs.

The government of Telangana has been implementing various initiatives to improve access to education and quality of education, such as strengthening infrastructure, improving teacher training, and providing scholarships to students.

16. What are the important religious tourist places in Telangana?

Telangana is home to several important religious tourist places:

Charminar: A historical monument in Hyderabad, known for its Islamic architecture.
Golconda Fort: A historic fort in Hyderabad, known for its impressive architecture and rich history.
Bhadrakali Temple: An ancient temple dedicated to Goddess Kali in Warangal.
Ramappa Temple: A UNESCO World Heritage Site known for its intricate carvings and architectural beauty.
Medak Fort: A historic fort with a large church, known for its architecture and religious significance.

17. Discuss the tank irrigation system in Telangana and ‘Mission Kakatiya’ programme in brief.

Telangana has a rich history of tank irrigation, with numerous tanks constructed centuries ago. These tanks play a crucial role in providing water for agriculture and other purposes.

Mission Kakatiya is a flagship program launched by the Telangana government to restore and rejuvenate these traditional water bodies. The program aims to:

Desilt tanks to increase their water storage capacity.
Repair and strengthen bunds (embankments) to prevent breaches.
Improve water distribution and usage efficiency.
Promote sustainable water management practices.

Mission Kakatiya has been successful in reviving many tanks, improving water availability for agriculture, and enhancing groundwater recharge.

SECTION C (15 x 2 = 30)

Note: Answer any fifteen questions out of the given twenty questions.

18. 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 the Gross Domestic Product (GDP), which represents the total value of goods and services produced within a country’s borders. Economic growth is essential for improving living standards, creating jobs, and reducing poverty.

19. 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. Higher literacy rates are associated with better health outcomes, higher incomes, and greater participation in the democratic process.

23. Poverty line

The poverty line is a minimum level of income or consumption deemed adequate in a particular country or region to sustain a basic standard of living. It is used to identify individuals and households living in poverty.

24. Sustainable development

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It emphasizes balancing economic growth with environmental protection and social equity.

25. Environmental degradation

Environmental degradation refers to the deterioration of the environment through human activities. It includes issues like air and water pollution, deforestation, soil erosion, and climate change.

26. 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.

27. Concept of food security

Food security exists when all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

28. SEZ

SEZ stands for Special Economic Zone. These are designated areas within a country that have different economic regulations than the rest of the country. They often offer incentives like tax breaks and relaxed regulations to attract foreign investment and promote exports.

29. L.I.C.

LIC stands for Life Insurance Corporation of India. It is a state-owned insurance company that provides a range of life insurance and investment products.

30. GOI cloud

GOI Cloud is an initiative by the Government of India to provide secure and reliable cloud computing services to government departments and agencies. It aims to enhance government efficiency, improve service delivery, and promote innovation in public services.

31. R.B.I.

RBI stands for Reserve Bank of India. It is the central bank of India, responsible for regulating the country’s banking system, managing monetary policy, and issuing currency.

32. Globalization

Globalization refers to the increasing interconnectedness and interdependence of countries and economies worldwide. It is characterized by the free flow of goods, services, capital, and information across borders.

33. WTO objectives

The World Trade Organization (WTO) aims to promote free and fair trade among member countries. Its objectives include reducing trade barriers, settling trade disputes, and promoting economic development.

34. Sex ratio in Telangana

Sex ratio refers to the number of females per 1000 males in a population. It is a crucial indicator of gender balance and women’s empowerment. The sex ratio in Telangana can be obtained from official government statistics.

35. 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.

36. Aasara Pension Scheme

Aasara Pension Scheme is a social security scheme in Telangana that provides financial assistance to elderly, widows, and differently-abled individuals. It aims to provide a basic income support to vulnerable sections of society.

37. Cyberabad

Cyberabad is a designated information technology (IT) and IT-enabled services hub in Telangana, located in and around Hyderabad. It is home to numerous IT companies and has become a major center for the IT industry in India.