NCERT Economics Class 10 gist

7/25/2019 NCERT Economics Class 10 gist

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1. DEVELOPMENT

Diferent persons can have diferent developmental goals and two, what may be

development or one may not be development or the other. It may even be

destructive or the other.

There are many things that are not easily measured but they mean a lot to our

lives.

For development, people look at a mix o goals.

Human Development Index

As of 1 July 2015, as per GNI per capita in 2014, calculated using theWorld Bank Atlasmethod,

low-income economies of $1,045 or less;

middle-income economies $1,045 to $12,736;

high-income economies $12,736 or more.

Lower-middle-income and upper-middle-income economies are separated at a GNI per capita of

$4,125.

The rich countries, excluding countries of Middle East and certain other small countries, are generally

called developed countries.
https://datahelpdesk.worldbank.org/knowledgebase/articles/378832-what-is-the-world-bank-atlas-methodhttps://datahelpdesk.worldbank.org/knowledgebase/articles/378832-what-is-the-world-bank-atlas-methodhttps://datahelpdesk.worldbank.org/knowledgebase/articles/378832-what-is-the-world-bank-atlas-methodhttps://datahelpdesk.worldbank.org/knowledgebase/articles/378832-what-is-the-world-bank-atlas-methodhttps://datahelpdesk.worldbank.org/knowledgebase/articles/378832-what-is-the-world-bank-atlas-method


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HDI HDIL.E. at

birth

Expected

years of

schooling

Mean years of

schoolingGNI per capita

GNI P.C. rank in!s

HDI rank

HDI rank Co!ntry "al!e #years$ #years$ #years$ #%&'' PPP ($

%&') %&') %&') %&') %&') %&')

1 Norway 0.944 81.6 17.5 12.6 64,992 5

50Russian

Federation0.798 70.1 14.7 12.0 22,352 -1

73 Sri Lana 0.757 74.9 13.7 10.8 9,779 29

75 !ra"i# 0.755 74.5 15.2 7.7 15,175 -1

90 $%ina 0.727 75.8 13.1 7.5 12,547 -7

116 Sout% &'ri(a 0.666 57.4 13.6 9.9 12,122 -29

130 )ndia 0.609 68.0 11.7 5.4 5,497 -4

147 *aistan 0.538 66.2 7.8 4.7 4,866 -14

142 !an+#ades% 0.570 71.6 10.0 5.1 3,191 5

igeria has least !DI o

Top countries are orway, "ustralia, #wit$erland, Denmark, etherlands,

%ermany, Ireland, ", 'anada

SUSTAINABILITY OF DEVELOPMENT

()e have not inherited the world rom our oreathers * we have borrowed it

rom our children.+

ecent evidence suggests that the groundwater is under serious threat o

overuse in many parts o the country. "bout - districts have reported a water

level decline o over / metres during the past 0 years. early one1third o the

country is overusing their groundwater reserves. In another 02 years, 3 per cent

o the country would be doing the same i the present way o using this resource

continues. %roundwater overuse is particularly ound in the agriculturally

prosperous regions o 4un5ab and )estern &.4., hard rock plateau areas o central

and south India, some coastal areas and the rapidly growing urban settlements.

(Data of 2004)

The table gives an estimate o reserves o crude oil 6column78. 9ore important, it

also tells us or how many years the stock o crude oil will last i people continue

to extract it at the present rate. The reserves would last only /- years more. This

is or the world as a whole. !owever, diferent countries ace diferent situations.


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'ountries like India depend on importing oil rom abroad because they do not

have enough stocks o their own. I prices o oil increase this becomes a burden

or everyone. There are countries like " which have low reserves and hence

want to secure oil through military or economic power.

)hen we produce

a good by exploiting natural

resources, it is an activity o

the primary sector. this sector is also

called agriculture and related

sector. The secondary sectorcovers

activities in which natural products

are changed into other orms through

ways o manuacturing that we

associate with industrial activity. it is also called as industrial sector. tertiary

sectorand is diferent

rom the above two. These are

activities that help in the development

o the primary and secondary sectors.

These activities, by themselves, do not

produce a good but they are an aid

or a support or the production

process. #ince these activities

generate services rather than goods,

the tertiary sector is also called the

service sector Transport,

storage, communication, banking,

trade :conomic activities, though, are grouped into three diferent categories,

are highly interdependent. In India, the mammoth task o

measuring %D4 is undertaken by a

central government ministry. This


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9inistry, with the help o various

government departments o all the

Indian states and union territories,

collects inormation relating to total

volume o goods and services and their

prices and then estimates the %D4

5. CONSUMER RIGHTS

'onsumers participate in the market when they purchase goods and

services that they need. These are the ;nal goods that people as

consumers use.

Individual consumers oten ;nd themselves in a weak position. )heneverthere is a complaint regarding a good or service that had been bought, the

seller tries to shit all the responsibility on to the buyer.

9arkets do not work in a air manner when producers are ew and

powerul whereas consumers purchase in small amounts and are

scattered. It was presumed that it was the responsibility o consumers to

be careul while buying a commodity or service. It took many years or

organisations in India, and around the world, to create awareness amongst

people. This has also shited the responsibility o ensuring.

ampant ood shortages, hoarding, black marketing, adulteration o ood and

edible oil gave birth to the consumer movement in an organised orm in the

74".

In 7


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)hen you buy any commodity, you will ;nd certain details given on the

packing. These details are about ingredients used, price, batch number,

date o manuacture, expiry date and the address o the manuacturer.

)hen we buy medicines, on the packets, you might ;nd @directions or

proper useA and inormation relating to side efects and risks associated

with usage o that medicine.

)hen you buy garments, you will ;nd inormation on @instructions or

washingA. It is because consumers have the &i+ht t" ,e i#-"&%eabout

the particulars o goods and services that they purchase.

'onsumers can then complain and ask or compensation or replacement i the

product proves to be deective in any manner. In recent times, the right to

inormation has been expanded to cover various services provided by the

%overnment.

In >ctober 02, the %overnment o India enacted a law, popularly known as TI

6ight to Inormation8 "ct, which ensures its citi$ens all the inormation about the

unctions o government departments.

"ny consumer who receives a service in whatever capacity, regardless o

age, gender and nature o service, has the &i+ht t" 'h""!ewhether to

continue to receive the service.

'onsumers have the &i+ht t" !ee/ &e&e!!*lagainst unair trade

practices and exploitation.

&nder '>4", a three1tier ?uasi15udicial machinery at the district, state and

national levels was set up or redressal o consumer disputes.

District orums can claim upto s 0 lakhs

#tate 'onsumer Disputes edressal 'ommission1 s 0 lakhs and s 7

crore ational 'onsumer Disputes edressal 'ommission1 claims exceeding s 7

crore

'onsumers to have the &i+ht t" &e0&e!e#t in the consumer courts.

The enactment o '>4" has led to the setting up o separate departments o

'onsumer "fairs in central and state governments.

" logo with the letters I#I, "gmark or !allmark can be seen. These logos

and certi;cation help consumers get assured o ?uality while purchasing

the goods and services. The organisations that monitor and issue these

certi;cates allow producers to use their logos provided they ollow certain

?uality standards. It is not compulsory or all the producers to ollow standards. !owever, or

some products that afect the health and saety o consumers or o

products o mass consumption like B4% cylinders, ood colours and


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additives, cement, packaged drinking water, it is mandatory on the part o

the producers to get certi;ed by these organisations.

India has been observing 2 De'e%,e&as the N*ti"#*l C"#!$%e&!3 *4. It

was on this day that the Indian 4arliament enacted the 'onsumer 4rotection "ct

in 7: "D

':DITeore

the introduction o coins, a variety o

ob5ects was used as money. For

example, since the very early ages,

Indians used grains and cattle as

money. Thereater came the use o

metallic coins * gold, silver, copper

coins * a phase which continued well

into the last centuryThe modern currency

is without any use o its own.


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Then, why is it accepted as a

medium o exchangeG It is accepted

as a medium o exchange because the

currency is authorised by the

government o the countryo

individual in India can legally reuse

a payment made in rupees. #ince demand deposits are accepted

widely as a means o payment, along

with currency, they constitute money

in the modern economy'redit 6loan8 reers to

an agreement in which the lender supplies the borrower with

money, goods or services in return or the promise o uture

payment. In one situation credit helps to

increase earnings and thereore the

person is better of than beore. In

another situation, because o the

crop ailure, credit

pushes the person into

a debt trap. )hether credit would

be useul or not,

thereore, depends

on the risks in the

situation and whether

there is some support,

in case o loss. 'ollateral is an asset that the

borrower owns 6such as land,

building, vehicle, livestocks,

deposits with banks8 and uses this


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as a guarantee to a lender until

the loan is repaid. Interest rate, collateral and

documentation re?uirement, and the

mode o repayment together comprise

what is called the terms o credit. They may vary depending on the

nature o the lender and the borroweresides the interest charge on the loan, the

trader also makes the armers promise to

sell the crop to him. "lso, since the crop prices are low

ater the harvest, the trader is able to

make a pro;t rom buying the crop at a low

price rom the armers and then selling it

later when the price has risen. the village moneylenderthe only source o

credit or the landless people in #onpur are

the landowner1employersBoans rom 'ooperativesThere are

several types o cooperatives possible such as

ar mers cooperatives, weavers cooperatives,

industrial workers cooperatives, etc. Hrishak

'ooperativeormal

sector loans and

inormal sector loansThe eserve ank o India

supervises the unctioning o ormal

sources o loans. There is no organisation which

supervises the credit activities o


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lenders in the inormal sector.

!igher cost o borrowing means a

larger part o the earnings o the

borrowers is used to repay the loan. This could

lead to increasing debt 6as we saw or

ama in #onpur8 and debt trap. 'heap

and afordable credit

is crucial or the

countryAs develop1ment.


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it is necessary

that banks and cooperatives

increase their lending particularly

in the rural areas, so that the

dependence on inormal sources

o credit reduces#econdly, while ormal sector

loans need to expand, it is also

necessary that everyone receives

these loans. "bsence o

collateral is one o the ma5or reasons

which prevents the poor rom getting

bank loans. Inormal lenders such as

moneylenders, on the other hand,

know the borrowers personally and

hence are oten willing to give a

loan without collateral. In recent years, people have tried

out some newer ways o providing

loans to the poor. The idea is to

organise rural poor, in particular

women, into small #el !elp %roups

6#!%s8 and pool 6collect8 their

savings. " typical #!% has 7210

members, usually belonging to one

neighbourhood, who meet and save

regularly. #aving per member varies

rom s 02 to s 7 or more,

depending on the ability o the people

to save. 9embers can take small loans


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rom the group itsel to meet their

needs. The group charges interest on

these loans but this is still less than

what the moneylender charges. "ter

a year or two, i the group is regular

in savings, it becomes eligible or

availing loan rom the bank.

Boan is sanctioned in the

name o the group and is

meant to create sel1employment opportunities

or the members9ost o the important

decisions regarding the

savings and loan activities

are taken by the group

members. The group

decides as regards the loans

to be granted * the purpose, amount,

interest to be charged, repayment

schedule etc. "lso, it is the group

which is responsible or the repayment

o the loan. "ny case o non1repayment o loan by any one

member is ollowed up seriously by

other members in the group. ecause

o this eature, banks are willing to

lend to the poor women when

organised in #!%s, even though they

have no collateral as such.

Thus, the #!%s help borrowers


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overcome the problem o lack o

collateral. They can get timely loans

or a variety o purposes and at a

reasonable interest rate. 9oreover,

#!%s are the building blocks o

organisation o the rural poor. ot

only does it help women to become

;nancially sel1reliant, the regular

meetings o the group provide a

platorm to discuss and act on a

variety o social issues such as health,

nutrition, domestic violence, etc. %rameen ank o angladesh is one o the

biggest success stories in reaching the poor to

meet their credit needs at reasonable rates.

#tarted in the 7

NCERT Economics Class 10 gist

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