Page 8 - Understanding Economics for Class 10

 Literacy rate (i.e., the literate children above the age of 7 years) is the Highest for Kerala
and lowest for Bihar.
 Finally, the net attendance ratio (i.e., the total number of children of age group 14 and
15-years attending school as a percentage of total number of children of same age) is the
Goyal Brothers Prakashan
maximum for Kerala and least for Bihar.

public facilities
 Money is the not only thing needed to live a good life and to buy desired goods and
services. Hence, we cannot conclude income as the best indicator to live.
 With money you cannot get a pollution free environment, unadulterated medicines as well
as it won’t be able to protect you from infectious disease at an individual level.
 Kerala has a low IMR (Infant Mortality Rate) because of good health and educational
infrastructure.
 In some states PDS (Public Distribution System) is effective.

Let’s Work these out (Page No. 12)
1. Look at data in the Tables given below. Is Haryana ahead of Kerala in literacy rate etc.,
as it is in terms of per capita income?
State Per Capita Income for 2018-19 (in Rs)
Haryana 2,36,147
Kerala 2,04,105
Bihar 40,982
Source: Economic Survey 2020-21, P.A. 29

Infant Mortality Rate per Literacy Rate % Net Attendance Ratio (per 100
State persons) secondary stage (age 14
1,000 live 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.
Ans. No, Haryana is not ahead of Kerala in literacy rate.

2. Think of other examples where collective provision of goods and services is cheaper than
individual provision.
Ans. There are a number of examples in life where collective provision of goods and service
is better and cheaper than individual provision.
(a) Hospital– Collective or public hospital will certainly be cheaper and better in comparison
to the cost in availing medical facilities or a doctor at home. Also, it is not possible
for every family to afford private medical facilities.
(b) Electricity– Collective electricity, i.e., electricity from State Electricity Boards or
BSES in Delhi is cheaper than that of running generator in the house.

3. Does availability of good health and educational facilities depend only on amount of
money spent by the government on these facilities? What other factors could be relevant?
Ans. No, it does not only depend on amount of money spent. It also depends on the capabilities
of the doctors and quality of the medicines in the case of health facilities. In education,
the quality of the teachers is important.

E-6 Economics Class X