Page 25 - Understanding Economics for Class 10

iv. very short answer type Questions
1. What is meant by the average income?
Ans. The average income is the total income of the country divided by its total population. The
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average income is also called per capita income.
2. Why is per capita income of different countries calculated in dollars and not in their own
currencies by the World Bank?
Ans. The World Bank does so in order to ensure uniformity in calculation across different regions
of the world.

3. Which countries are called rich countries as per the World Development Report, 2019?
Ans. Countries with per capita income of US $43900 per annum and above in 2019, are called
rich or developed countries.

4. Which countries are called low-income countries as per the World Development Report,
2019?
Ans. Countries with per capita income of US $ 2500 or less are called low-income or under
developed countries.
5. What was the per capita income of India in 2019? In which category would you place India
high-income countries or low-income countries?
Ans. In 2019, the per capita income of India was just US $6700 per annum. On the basis of
this, we would place India in low-income countries.

6. ‘What may be development for one may be destruction for the other’. Give an example to
support this statement.
Ans. Industrialists may want more dams to get more electricity but this may cause large-scale
displacement of local communities.

7. What do people seek besides better income?
Ans. Besides seeking more income, people also seek things like equal treatment, freedom, security
and respect of others. They resent discrimination.

8. What do you mean by Infant Mortality Rate or IMR?
Ans. Infant Mortality Rate or IMR indicates the number of children that die before the age of
one year as a proportion of 1000 live children born in that particular area.

9. What is Net Attendance Ratio?
Ans. Net Attendance Ratio is the total number of children of age group 14 and 15 years attending
school as a percentage of total number of children in the same age group.

10. What does literacy rate measure?
Ans. Literacy rate measures the proportion of literate population in the 7 and above age group.

11. What are non-renewable resources?
Ans. Non-renewable resources are those which will get exhausted after years of use. For example,
fossil fuels.

E-16 Economics Class X