Page 7 - Understanding Economics for Class 10

3. Besides size of per capita income, what other property of income is important in comparing
two or more societies?
Ans. Average income, i.e., per capita income, is important but not the only criterion for
development. Along with average income, equitable distribution of income in a country
Goyal Brothers Prakashan
should also be considered.
4. Suppose records show that the average income in a country has been increasing over a
period of time. From this, can we conclude that all sections of the economy have become
better? Illustrate your answer with an example.
Ans. All sections of the economy have become better cannot be concluded because different
sections of the economy may have become better or worse. An example is the current
situation in India, where the average income has increased every year; the services sector
has increased very much, but agriculture is having virtually no growth.

5. From the text, find out the per capita income level of about 10-15 low-income countries
as per World Development Reports.
Ans. Per capita income level of middle-income countries as per WDR 2006 was between
`37,000 and `4,53,000 per annum.

6. Write a paragraph on your notion of what should India do, or achieve, to become a
developed country
Ans. To become a developed sovereign state, India should achieve the following –
(i) A highly developed economy.
(ii) Have advanced infrastructure facilities like better roads, better telecom network, better
transportation facilities, etc.
(iii) Higher per capita income, matching that of other developed countries.
(iv) A higher general standard of living with enough food to feed the poorest people adequately.
(v) The service sector should provide more wealth/income than the industrial or agricultural
sector.

income anD other criteria
 Let us compare the per capita income of Per Capita Income for
Haryana, Kerala, and Bihar. State 2018-19 (in Rs)
 Here, Haryana has the highest per capita Haryana 2,36,147
income and Bihar is at the bottom. So, if per Kerala 2,04,105
capita income were to be used as the measure
of development, Haryana will be considered Bihar 40,982
the most developed state of the three. Source: Economic Survey 2020-21, P.A. 29
Infant Mortality Literacy Rate % Net Attendance Ratio (per 100
State Rate per 1,000 live persons) secondary stage (age 14
births (2018) 2017-18 and 15 years) 2017-18
Haryana 30 82 61
Kerala 7 94 83
Bihar 32 62 43
Sources: Economics Survey 2020-21, P.A. 157, National Sample Survey Organisation (Report No. 585.)
National statistical office, Government of India.

 Again, if we look at infant mortality rate, Literacy rate and Net attendance ratio of Haryana,
Kerala and Bihar. We can conclude that,
 Infant Mortality rate (i.e., the children dying below the age of 1 per 1000) is the least
for Kerala and highest for Bihar.
Economics Class X E-5