4 Marks Each

Question 14 Marks

Discuss any five features of the developing economy.

Answer

According to the World Bank Report of 2004.

The countries having per capita income up to $ 735$ are called Developing Economies.
India is an example of such an economy. The basic features of Developing Country are:

$1.$ Less Per capita Income:

The National income of developing countries is less and their population growth rate is high.
The per capita income is low-it is less than $735.$
Because of less per capita income, living standard of people is low.

$2.$ High Population Growth:

The annual population of a developing country grows at a rate of $2\%$ or more in these nations.

$3.$ Dependence on Agriculture:

The main occupation in most of the developing countries is agriculture.
More than $60\%$ of the population is dependent on agriculture for employment.
Contribution of agriculture in National Income of these nations is about $26\%.$

$4.$ Unequal Distribution of Income:

Unequal distribution of income and factors of production is seen in developing countries.
The $20\%$ rich people of the country share $40\%$ of national income while the poorest $20\%$ share $10\%$ of national income.

$5.$ Unemployment:

Most of the developing countries suffer from unemployment.
The ratio of unemployment is more than $3\%$ of total labour and the duration is also long.
Different types of unemployment are also seen like seasonal unemployment, disguised unemployment and industrial unemployment.

$6.$ Poverty:

In developing countries poor people living below poverty line constitute one third of population.
Those who are not able to satisfy their primary (basic) necessities like food, clothing, shelter, education and health are called poor.

$7.$ Dual Economy:

Developing countries have dual economy.
On one hand there is traditional method of farming and on the other there is modern method that exists.
For E.g. There are poor farmers who still use ploughs, bullock carts and there are landlords who use tractors, threshers and own latest cars.

$8.$ Insufficient Infrastructure Facilities:

Developing countries lack infrastructure facilities like communication, transport, shipping ports, electricity, banking, education and health.

$9.$ Unique form of International Trade:

Question 24 Marks

Difference between Private and Public Sector.

Answer

Point Of Difference	Private Sector	Public Sector
Ownership	The resources are owned by private individuals and companies.	Resources are owned by the state.
Management	The management is in the hands of private individuals or elected representatives.	The management is done by the government or by the officer appointed by the government.
Aim	The aim of this sector is profit.	Its aim is welfare of the people.
Needs of the Poor	The needs of the poor are neglected as they are not treated as consumers.	The government looks after the need of the poor.
Economic Decisions	The decisions are taken keeping in mind the market mechanism.	The decisions are taken after collecting information from local, state and central level.
Monopoly	The evils of monopoly do exist.	The evils of monopoly do not exist.
Wastage	The production is done according to the needs of the people so there are less chances of wastage.	There is a lot of wastage of resources due to government instability and not being fully aware of the market mechanism.
Income Distribution	Is very inequal, the rich take away maximum share of the income and there is a big gap between the rich and the poor.	This system reduces the gap between the rich and poor.

Social Science 4 Marks Each