Page 24 - Understanding Economics for Class 10

income. So, greater income itself is considered to be one important goal. Now, what is the
income of a country? Intuitively, the income of the country is the income of all the residents
of the country. This gives us the total income of the country. However, for comparison
between countries, total income is not such a useful measure. Since countries have different
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populations comparing total income which will not tell us what an average person is likely
to earn. Are people in one country better off than others in a different country? Hence, we
compare the average income which is the total income of the country divided by its total
population. The average income is also called per capita income.
(i) Why is income considered one of the most important attributes for comparing countries?
Ans. Income is considered important because it reflects a country's economic resources and
its capacity to provide for the needs and wants of its residents. Higher income is often
associated with greater development and access to various goods and services.
(ii) Why is total income not a useful measure for comparing countries?
Ans. Total income is not a useful measure for comparison because countries have different
populations. Comparing total income does not provide insights into the average income
or living standards of individuals within each country.
(iii) How does income relate to the overall well-being of individuals in a country?
Ans. Income is closely tied to the overall well-being of individuals as it influences their
access to basic necessities, such as food, shelter, healthcare, and education. Higher
incomes often translate into a higher standard of living and the ability to afford a
better quality of life.

2. Suppose for the present that a particular country is quite developed. We would certainly like
this level of development to go up further or at least be maintained for future generations.
This is obviously desirable. However, since the second half of the twentieth century, a
number of scientists have been warning that the present type, and levels, of development
are not sustainable. Groundwater is an example of renewable resources. These resources are
replenished by nature as in the case of crops and plants. However, even these resources may
be overused. For example, in the case of groundwater, if we use more than what is being
replenished by rain then we would be overusing this resource. Non-renewable resources
are those which will get exhausted after a few years of use. We have a fixed stock on
earth which cannot be replenished. We do discover new resources that we did not know of
earlier. New sources in this way add to the stock. However, over time, even this will get
exhausted.
(i) Why have scientists been expressing concern regarding the sustainability of current
development levels?
Ans. Scientists are concerned because current development practices often prioritise short-
term gains without adequately considering the long-term environmental and social
consequences. This approach can lead to resource depletion and environmental
degradation.

(ii) Why is groundwater regarded as a renewable resource? Give an example how it can
be overused.
Ans. Groundwater is renewable as it is replenished by rainfall and infiltration. Natural processes
like water seeping into the ground recharge aquifers and replenish groundwater. For
example, if we extract more groundwater than is being replenished by rainfall, such as
through excessive pumping for irrigation or industrial use, we would be overusing this
resource. Thus, sustainable management is necessary to avoid depleting groundwater
resources.

Economics Class X E-15