TS Inter 2nd Year – Economics Model Paper 2024

SECTION – A

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

Answer: Developing economies are characterized by several distinct features, including:

  1. Low Per Capita Income: A key characteristic of developing economies is low per capita income, which limits the purchasing power of the population and affects living standards. India, despite being a large economy, has a relatively low per capita income.
  2. High Dependence on Agriculture: In many developing countries, including India, agriculture is a major sector of employment, though its contribution to GDP is decreasing over time.
  3. Underdeveloped Infrastructure: Poor infrastructure in terms of roads, electricity, water supply, and sanitation hampers the overall growth of these economies.
  4. High Population Growth: Developing economies, like India, often face rapid population growth, which places stress on resources and services.
  5. Structural Imbalances: The economies tend to have structural imbalances, such as a large informal economy, income inequality, and poor distribution of wealth.
  6. Dependence on Exports of Raw Materials: Developing countries like India often depend on the export of raw materials and primary products, which makes them vulnerable to global market fluctuations.
  7. Social and Economic Challenges: Issues like poverty, illiteracy, unemployment, and inadequate healthcare are prevalent, which hinder the development process.

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

Answer: The rapid growth of India’s population can be attributed to several factors:

  1. High Birth Rate: Despite family planning efforts, India has a high birth rate, partly due to cultural factors and a preference for larger families.
  2. Declining Mortality Rate: Improvements in healthcare, sanitation, and nutrition have led to a decrease in the mortality rate, especially infant mortality, contributing to population growth.
  3. Cultural and Social Factors: In rural areas, having more children is seen as a source of economic support and social security, leading to higher fertility rates.
  4. Lack of Awareness about Family Planning: In some regions, there is still a lack of awareness and access to family planning methods, which contributes to higher birth rates.
  5. Increase in Life Expectancy: Advancements in medical technology and healthcare services have led to an increase in life expectancy, thus contributing to overall population growth.

3. Analyze the problems of small-scale industries in India.

Answer: Small-scale industries in India face numerous challenges:

  1. Lack of Finance: Small-scale industries often struggle to obtain the necessary capital or credit, leading to undercapitalization and difficulties in expanding operations.
  2. Inadequate Infrastructure: These industries lack access to modern infrastructure such as transportation, electricity, and water supply, which hampers their productivity and efficiency.
  3. Technology Gap: Many small-scale industries still rely on outdated technology and methods, which makes them less competitive in a global market.
  4. Marketing Issues: Small industries face difficulties in marketing their products effectively, both domestically and internationally, due to lack of resources for advertising and branding.
  5. Poor Management: Many small enterprises suffer from poor management practices, leading to inefficiencies and a lack of innovation.
  6. Competition from Large Industries: They face intense competition from larger firms that have better access to resources and economies of scale.

4. Describe the causes for low productivity in agriculture.

Answer: Low agricultural productivity in India can be attributed to the following causes:

  1. Traditional Farming Techniques: Many farmers still use outdated methods, which are less efficient and less productive compared to modern techniques.
  2. Limited Access to Modern Technology: The lack of access to advanced farming equipment and technology limits productivity.
  3. Inadequate Irrigation: Agriculture in India is heavily dependent on rainfall, and inadequate irrigation facilities make farming vulnerable to seasonal fluctuations.
  4. Fragmented Land Holdings: The average size of landholdings is small and fragmented, making mechanized farming difficult and reducing productivity.
  5. Lack of Proper Education and Training: Many farmers lack the knowledge of modern farming practices, leading to inefficiency and low yields.
  6. Inadequate Credit Facilities: Farmers often do not have access to easy credit, which limits their ability to invest in better technology or inputs.

5. Briefly explain the remedial measures of poverty.

Answer: Several remedial measures can help alleviate poverty in India:

  1. Employment Generation: Programs like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) aim to provide rural employment opportunities and increase incomes.
  2. Access to Education: Expanding education and vocational training can help individuals develop skills that improve employability and income levels.
  3. Healthcare Improvement: Access to better healthcare services improves the overall health of the population, reducing healthcare-related poverty.
  4. Microfinance: Providing small loans to the poor through microfinance institutions helps them start small businesses and improve their financial situation.
  5. Land Reforms: Land reforms, including land redistribution, can help alleviate poverty, especially among the rural poor.
  6. Social Security Schemes: Government welfare schemes, such as pensions, food security programs, and subsidized housing, can provide a safety net for the poorest sections of society.

SECTION – B

6. The sectoral contributions to the national income?

Answer: India’s national income is contributed by three main sectors:

  1. Primary Sector: This sector includes agriculture, forestry, fishing, and mining. It contributes significantly to the economy, especially in rural areas, though its share in GDP has been declining over time.
  2. Secondary Sector: The industrial sector, including manufacturing, construction, and electricity, gas, and water supply. This sector has seen significant growth due to industrialization and urbanization.
  3. Tertiary Sector: The service sector, including trade, transport, banking, communication, education, and healthcare. This sector has experienced the most rapid growth and is now the largest contributor to India’s GDP.

7. Explain the measures taken by the government for balanced regional development?

Answer: The government has implemented various measures to ensure balanced regional development:

  1. Special Economic Zones (SEZs): These zones offer tax incentives, infrastructure support, and ease of doing business to attract investments and promote industrial development in underdeveloped regions.
  2. Backward Regions Grant Fund (BRGF): This scheme focuses on promoting development in backward regions through infrastructure development, human resource development, and economic activities.
  3. Industrial Corridors: Initiatives like the Delhi-Mumbai Industrial Corridor aim to develop industrial clusters in less-developed regions to foster economic growth.
  4. Infrastructure Development: Improving transportation, communication, and power supply in underdeveloped areas to boost economic activities.
  5. Financial Assistance and Subsidies: Providing subsidies for industries in less-developed regions to stimulate local economic development.

8. Explain the different types of pollution and examine their effects.

Answer: The main types of pollution are:

  1. Air Pollution: Caused by the release of harmful substances like carbon monoxide, sulfur dioxide, and particulate matter. Effects include respiratory diseases, environmental damage, and global warming.
  2. Water Pollution: The contamination of water bodies by pollutants like chemicals, plastics, and untreated sewage. It leads to health issues, loss of biodiversity, and scarcity of clean water.
  3. Soil Pollution: The degradation of the land through industrial waste, pesticides, and deforestation. It affects agricultural productivity and harms wildlife.
  4. Noise Pollution: Excessive noise from urbanization, traffic, and industrial activities. It causes hearing loss, sleep disturbances, and stress.

9. Explain the functions of NABARD?

Answer: The National Bank for Agriculture and Rural Development (NABARD) has several functions:

  1. Credit Planning: NABARD provides loans and credit for agricultural and rural development, promoting the overall development of rural areas.
  2. Refinancing: NABARD refinances banks and financial institutions offering credit to agriculture and rural development projects.
  3. Monitoring and Supervision: It supervises cooperative banks and regional rural banks, ensuring their proper functioning and financial stability.
  4. Rural Infrastructure Development: NABARD also works on improving rural infrastructure through its Rural Infrastructure Development Fund (RIDF).
  5. Training and Capacity Building: It provides training to rural banks and other stakeholders in the agricultural sector to improve their operations.

10. Assess the impact of the Green Revolution on the Indian economy?

Answer: The Green Revolution (1960s) had a profound impact on India’s agricultural economy:

  1. Increased Agricultural Productivity: It led to higher yields in crops like wheat and rice, significantly improving food security.
  2. Self-Sufficiency in Food Grains: India moved from being a food-deficient country to achieving self-sufficiency in food grains, reducing dependence on food imports.
  3. Technological Advancements: The introduction of high-yielding varieties, chemical fertilizers, and irrigation techniques modernized Indian agriculture.
  4. Economic Growth: Increased agricultural productivity boosted rural income and stimulated economic growth.

However, it also led to regional disparities, as only certain regions with better infrastructure benefitted from the Green Revolution.


11. How did Special Economic Zones (SEZs) accelerate industrial growth in India?

Answer: SEZs have played a crucial role in boosting industrial growth by offering:

  1. Tax Exemptions: SEZs offer various tax incentives, including income tax holidays, which attract domestic and foreign investments.
  2. Infrastructure Development: SEZs have state-of-the-art infrastructure, including transport, power supply, and communication networks, which help industries function efficiently.
  3. Exports: SEZs facilitate export-oriented industries, which have contributed to foreign exchange earnings and improved the balance of payments.
  4. Employment Generation: SEZs have created jobs in various sectors, improving employment opportunities and reducing poverty.

12. Explain the various kinds of transport in India?

Answer: India has three main types of transport:

  1. Road Transport: Roadways are the most commonly used form of transport, especially for short distances. India has an extensive road network, including highways and rural roads.
  2. Rail Transport: Indian Railways is the largest railway network in the world, providing affordable and efficient transport for goods and passengers.
  3. Water Transport: Ports along India’s coastline facilitate sea trade. Inland water transport is used for goods movement in rivers like the Ganga and Brahmaputra.
  4. Air Transport: India has a growing air transport network with numerous domestic and international airports.

13. Assess the role of international trade on the Indian economy?

Answer: International trade has a significant role in India’s economy:

  1. Economic Growth: Trade contributes to GDP by facilitating the exchange of goods and services.
  2. Foreign Exchange Earnings: Exports generate foreign currency, improving the country’s reserves.
  3. Technology Transfer: Exposure to international markets allows for the transfer of technology and modern business practices.
  4. Job Creation: Trade and export-oriented industries create numerous employment opportunities.

14. Analyze the differences between GATT and WTO?

Answer: The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) differ in the following ways:

  1. Foundation: GATT was a multilateral trade agreement established in 1947, whereas the WTO was formed in 1995 as a permanent global institution to replace GATT.
  2. Scope: GATT focused primarily on trade in goods, whereas the WTO covers goods, services, and intellectual property rights.
  3. Dispute Resolution: The WTO has a more structured and effective dispute resolution system compared to GATT.

15. Briefly explain the welfare programmes of the Government of Telangana?

Answer: The government of Telangana has launched several welfare programs:

  1. Rythu Bandhu Scheme: Provides financial assistance to farmers to support agricultural activities.
  2. Kalyana Lakshmi Scheme: Provides financial aid for the marriage of girls from economically weaker families.
  3. Aasara Pensions: Provides pension benefits to the elderly, disabled, and widows.
  4. Mission Bhagiratha: A program to supply safe drinking water to every household in Telangana.

16. Explain the growth and perspectives of the IT sector in Telangana?

Answer: Telangana has emerged as a hub for the IT sector, particularly with the development of Hyderabad as a major IT city. Key factors include:

  1. Infrastructure: Telangana offers world-class infrastructure, including IT parks and facilities.
  2. Skilled Workforce: The state has a large pool of skilled workers in engineering and IT.
  3. Government Support: Various government policies, including the TS-iPASS initiative, have created a favorable environment for IT companies.

17. Discuss the tank irrigation system of Mission Kakatiya Programme in brief?

Answer: Mission Kakatiya is an initiative launched by the government of Telangana to restore traditional tank irrigation systems. It aims to revive and rejuvenate water bodies, particularly tanks, to ensure sustainable irrigation for farmers, especially in rural areas. The program focuses on the repair and maintenance of tanks, ensuring efficient water management and improved agricultural productivity.


SECTION – C

18. Human Development Index (HDI).

Answer: The Human Development Index (HDI) is a composite measure that assesses a country’s level of human development based on three factors:

  1. Life Expectancy: Measures the average lifespan of citizens, indicating the health standard of the population.
  2. Education: Combines mean years of schooling for adults and expected years of schooling for children, reflecting the education level.
  3. Per Capita Income: Adjusted for purchasing power parity (PPP), this reflects the economic standard of living.

The HDI is used to rank countries, guiding policies and global development priorities.


19. Population Explosion.

Answer: Population explosion refers to the rapid and excessive growth of the human population. It is primarily caused by:

  1. High Birth Rates: Due to cultural preferences, early marriages, and limited awareness of family planning.
  2. Declining Death Rates: Advances in healthcare and sanitation reduce mortality rates.
  3. Inadequate Family Planning: Lack of widespread awareness and access to contraception.

The effects include overburdened resources, environmental degradation, and increased poverty.


20. Literacy Rate.

Answer: The literacy rate is the percentage of people aged 7 and above who can read and write with understanding in any language. It is an important indicator of educational development and social progress. A higher literacy rate contributes to a more skilled workforce and better living standards.


21. Janani Suraksha Yojana.

Answer: Janani Suraksha Yojana (JSY) is a government program aimed at reducing maternal and neonatal mortality by promoting institutional deliveries. It provides financial assistance to poor pregnant women to encourage them to deliver in healthcare institutions, thereby reducing the risks associated with childbirth at home.


22. Absolute Poverty.

Answer: Absolute poverty refers to a condition where an individual or community is unable to meet the minimum basic needs for survival, such as food, shelter, and clothing. It is often measured using a poverty line, indicating the income below which people cannot maintain a basic standard of living.


23. Frictional Unemployment.

Answer: Frictional unemployment is the temporary unemployment that occurs when people are between jobs or are entering the labor market for the first time. It reflects the time taken to match workers with the right job.


24. NITI Aayog.

Answer: NITI Aayog (National Institution for Transforming India) is a policy think tank of the Indian government, aimed at promoting sustainable development and cooperative federalism. It replaced the Planning Commission in 2015 and works on creating strategies to achieve long-term economic growth, poverty reduction, and sustainable development.


25. Balanced Regional Development.

Answer: Balanced regional development refers to the equitable distribution of resources and development across different regions of a country. It involves ensuring that all regions, particularly underdeveloped and backward areas, have access to opportunities, infrastructure, and social services to reduce regional disparities.


26. Microfinance.

Answer: Microfinance refers to the provision of small loans, savings accounts, and other financial services to low-income individuals or communities who do not have access to traditional banking services. It helps in improving their livelihoods by empowering them to start or expand small businesses.


27. Minimum Support Price (MSP).

Answer: Minimum Support Price (MSP) is the price at which the government guarantees to purchase certain crops from farmers, regardless of market conditions. MSP aims to protect farmers from price fluctuations and ensures they receive a fair price for their produce.


28. Small Industries Development Bank of India (SIDBI).

Answer: SIDBI is an institution established to promote, finance, and develop small-scale industries in India. It provides financial assistance to micro, small, and medium enterprises (MSMEs) and plays a key role in their growth and modernization.


29. Economic Infrastructure.

Answer: Economic infrastructure refers to the physical and organizational structures required for the operation of an economy, such as transportation systems (roads, railways), energy systems (electricity, gas), communication networks, water supply, and sanitation.


30. Life Insurance Corporation of India (LIC).

Answer: LIC is a government-owned insurance company and the largest life insurer in India. It provides a range of life insurance products, including term insurance, endowment plans, and pension plans, contributing to the financial security of individuals and families.


31. GOI Cloud.

Answer: GOI Cloud is an initiative by the Government of India to provide cloud computing services to various government departments and agencies. It aims to improve the efficiency and transparency of government services while reducing costs and providing scalable infrastructure.


32. Liberalization.

Answer: Liberalization refers to the process of relaxing government regulations and restrictions in key areas such as trade, investment, and industry. It aims to promote a more open and competitive economy, attracting foreign investments and encouraging domestic growth.


33. TRIMs (Trade-Related Investment Measures).

Answer: TRIMs are regulations that affect foreign investments and trade practices, particularly those related to the movement of foreign capital. They are aimed at ensuring that investment policies are consistent with global trade rules, particularly in the context of the World Trade Organization (WTO).


34. State Gross Domestic Product (SGDP).

Answer: SGDP is the total value of goods and services produced within a state’s borders. It is used to measure the economic performance of a state and is a crucial indicator for policy-making, resource allocation, and assessing living standards within the state.


35. Telangana Drinking Water Supply Projects.

Answer: Telangana has undertaken several drinking water supply projects to improve access to clean water. Programs like Mission Bhagiratha aim to provide safe drinking water to every household by constructing new pipelines and enhancing the existing water supply infrastructure.


36. TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System).

Answer: TS-iPASS is a single-window system implemented by the Telangana government to facilitate the approval and clearance processes for industrial projects. It aims to reduce the time required for setting up industries, making Telangana a more attractive destination for investment.


37. SC Welfare (Scheduled Caste Welfare).

Answer: SC Welfare refers to government programs designed to improve the socio-economic conditions of Scheduled Castes (SCs) in India. These include affirmative action policies, reservations in education and employment, scholarships, financial aid, and various welfare schemes aimed at uplifting SC communities.