Liberalisation, Privatisation And Globalisation — Economics STD 12 Commerce — Question

Read the passage given below and answer the following questions from 1 to 5.
Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.

1. Which of the following gives the definition of public goods?

1. Excludable and non rivalrous in nature
2. Non-excludable and non-rivalrous in nature
3. Non-excludable and rivalrous in nature
4. Excludable and rivalrous in nature

2. Consider the situation of 2 countries – A and B. Country A has invested more towards the technological progress whereas Country B has invested more towards expanding its military network and arms. To Solow, which country would go faster?

1. Country A
2. Country B
3. Both grows and the same pace
4. Can’t comment

3. Standard economic theories failed to explain the post war rapid growth due to?

1. Measuring growth in terms of physical inputs only
2. Ignoring other important factors such as improved skills and education
3. Both (a) and (b)
4. None of the above

4. An externality is the good or bad impact which enters the utility or production function of another individual or firm with no choice of their own. The given statement is?

1. True
2. False
3. Partially True
4. Partially False

5. In the context of the above paragraph, the ‘residual’ factor include.

1. Improvement in the quality of human capital
2. Investment in human beings
3. Improvement in technology
4. All of the above

Differentiate between conventional and non conventional sources of energy.

"As physical capital is essential for economic development so is human capital." Explain.

There is a general perception going around in India that there is sudden increase in dumping of Chinese goods into India which will have implications for manufacturing sector in India and also that we do not engage ourselves in trading with our neighbouring nations. Look at the following table, which shows export from India to, and imports from, Pakistan and China. Interpret the results.

Country	Exports from india(₹ in crore)			Imports to India(₹ in crore)
	2004-05	2014-15	Annual Rate of Frowth(%)	2004-05	2014-15	Annual Rate of Growth(%)
Pakistan	2,341	11,351	39	427	3,041	61
China	25,232	73,038	19	31,892	3,69,541	106

Write a detailed note on people participation in work force.

Why is it necessary to conserve energy?

Give the benefits and limitations of using solar power.

Explain the importance of agricultural sector for the Indian economy.
OR
Why is agriculture sector deemed to be the backbone of Indian economy?

India has abundant natural resources-substantiate the statement.

What factors contribute to human capital formation?