Category: 1st PUC

Karnataka 1st PUC English Textbook Answers Reflections Chapter 10 Frederick Douglass

I. Answer the following questions in a word, a phrase or a sentence each:

Question1.
What prevented the slaves from knowing their birthdays?
Answer:
The wish of the masters prevented the slaves from knowing their birthdays.

Question 2.
How would the master look at the enquiries about the slaves’ birthday?
Answer:
The masters used to give only some approximate year like 1835 or so and not the exact year.

Question 3.
What was whispered about Douglass’ parentage?
Answer:
That Douglass was the son of his master.

Question 4.
When was Douglass separated from his mother?
Answer:
He was separated from his mother when he was just an infant.

Question 5.
Douglass’ mother was able to meet him only at…
Answer:
nights.

Question 6.
What was the penalty to the field hand for not being in the field at sunrise?
Answer:
Whipping.

Question 7.
How old was Douglass when he lost his mother?
Answer:
Seven years old.

Question 8.
Name the person who was believed to be both Douglass’ father and master.
Answer:
Mr. Anthony.

Question 9.
Who was Mr. Plummer?
Answer:
Mr. Plummer was an overseer at Mr. Anthony’s farms.

Frederick Douglass Additional Question and Answer

Question 10.
When and where was Douglass born?
Answer:
He was bom in Tuckahoe near Easton in Talbot county, Maryland, in 1817 or 1818.

Question11.
When did Douglass escape from slavery?
Answer:
In-1838.

Question 12.
What is the name of Douglass’ wife?
Answer:
Anna Murray.

Question 13.
Frederick Douglass died in
(a) 1839
(b) 1895
(c) 1817
(d) 1880
Answer:
(b) 1895

Question 14.
What motivated him to get rid of slavery from his life?
Answer:
From his earliest days he had a deep conviction that slavery would not be able to hold him forever. Even in the darkest hours, the living word of faith and spirit of hope did not desert him and cheered him through the gloom, to escape from slavery.

II. Answer the following questions in a paragraph each:

Question 1.
Why wasn’t Douglass affected, much by his mother’s death?
Answer:
Frederick Douglass was separated from his mother before he was twelve months old. He had spent very little time with her and that too only during a few night times. He lost her at the age of seven and never enjoyed any care and communication during those years. So, he was not affected by her death. He was also not allowed to visit her during her illness, death or burial.

III. Answer the following questions:

Question 1.
What kind of hardships did the slaves suffer at the hands of the slave holder and his mistress?
Answer:
The slave holders sexually exploit the slave women and the children bom out of this also follow this condition of slavery’. Mother and child are separated to avoid any filial bonding. Children bom like this are a constant reminder to the wives of the masters about their parentage and they take a sadistic pleasure in ill treating these mulattoes.

They are whipped and beaten for the slightest offence and if the master shows any favours to them, they get punished further. The slaves are whipped mercilessly for the smallest mistakes. As it is they are made to work from morning till night without rest.

Question 2.
How does the passage comment on the dreadful experience of slavery?
Answer:
The passage reflects the brutal hidden faces of the masters who treat their slaves cruelly. The slaves were not given proper food. They were exploited without any freedom. Especially for women it was double exploitation in the name of patriarchy and in the name of slavery. When the girls at teenage seem to be beautiful for their masters, they use them sexually and if they give birth to children, the children were sold at the age of infants to avoid their sentimental relationship.

The passage also explains the heart rendering description of walking at nights for several miles of mothers to see their children. Moreover, they could talk only a little bit because the children would be tired and go to sleep but in the morning they have to go back for work before sunrise. If they fail, they get whipping. This shows the brutal nature of white masters towards their slaves.

Question 3.
In spite of the hardships he suffered as a slave, why does the author say, “slavery would not always be able to hold me within its foul embrace”?
Answer:
Since his childhood when he was under slavery, the author had a strong will power that he would not be a slave forever and he would escape from it, that was his strong faith and spirit in him. This living faith and spirit of hope make him to say that “slavery would not be able to hold me within its foul embrace” and this did not leave him but remained like a ministering angel to cheer him through the gloom. The author expresses his gratitude to God because God gave him a good spirit of hope.

Vocabulary

Phrasal Verbs

A phrasal verb is the combination of a verb + a particle (preposition or adverb) resulting in a new word. The new unit gives a different meaning from the two separate words.
Use the verbs in column A with the right prepositional particles in column B to form as many phrasal verbs as possible. Find out the meaning with the help of a dictionary and make your own sentences

A	B
act, ask, break, bail, call, drop look, pick, lock, check, keep, make, run, settle, step, put, walk, turn, carry, fall, let, hang, cut, come, take	in, on, out, off, down, up, through, around

Example: act out, make out, walk in, step up
Act out, act on, act up, ask around, ask out, break down, break in, break out, break up, break through, bail out, call up, call in, call on, call off, drop down, drop in, drop out, look in, look up, look around, look down, look out, look through, pick up, pick in, pick off, pick on, pick out, lock on, lock out, lockup, lock in, check up, check on, check out, check in, keep up, keep in, keep on, keep out, make up, make off, run on, run out, run off, run through, settle up, settle in, settle down step up, step in, step out, step down, step on, put down, put off, put up, put out, walk-in, walk out, walk up, walk on, walk off, turn around, turn up, turn on, turn down, turn out, carry on, carry off, carry out, carry over, carry through, fall down, fall in, fall off, fall out, let in, let off, let out, let through, let down, hang out, hang up, hang on, cut down, cut off, cut out, cut up, come up, cut in, come down, come in, come through, come on, come out, take off, take up, take out, take on, drop off, make out, run in, run up, run down, run around, let on.

1st PUC English Textbook Answers 

Karnataka 1st PUC English Textbook Answers Reflections Chapter 3 Around a Medicinal Creeper

I. Answer the following questions in a word, a phrase or a sentence each:

Question 1.
What did Mara do when they found the creeper?
Answer:
Mara tied the creeper to the nearby tree.

Question 2.
Mention the curse about the medicinal plant.
Answer:
The medicinal plant was cursed by a sage that when some one was in need of this plant, they shall not find it.

Question 3.
What surprised the white man?
Ans.
The white man was surprised at the leaf which cured the injured hand of Mara within a short period.

Question 4.
How did the mongoose and cowcal cure themselves of snakebite?
Answer:
The mongoose and the cowcal cured themselves of snake bite by chewing the medicinal leaves.

Question 5.
Why had Mara lost his teeth on the right side?
Answer:
Mara lost his teeth on the right side because he used a stick to brush his teeth.

Question 6.
What did Mara’s wife find on opening the packet of meat?
Answer:
Only the leaves.

Question 7.
What happened when the milk was mixed with the juice of the creeper’s leaves?
Answer:
The milk became firm and rubbery

Question 8.
When would the medicines lose their potency according to the belief of the native doctors?
Answer:
The native doctors believe that if they tell others about their medicines, the medicines would lose their potency.

Around a Medicinal Creeper Additional Question and Answer

Question 9.
Mara tied the medicinal creeper to a nearby tree because
(a) it could be easily located
(b) it needed the support of a tree
(c) he was asked to do so.
Answer:
(a) it could be easily located.

Question 10.
Krishna has the disease
(a) Cancer
(b) Piles
(c) Fever
(d) Blood clot
Answer:
(b) Piles

Question 11.
The medicinal creeper is used as antibiotic. True / false
Answer:
True.

Question 12.
What did Krishna use to get his piles cured?
Answer:
Krishna drank milk along with the medicinal root and got his piles cured in five days.

Question 13.
Who brought the medicinal creeper first?
(a) Mara
(b) Krishna
(c) Sannappa
(d) Mara’s wife
Answer:
(c) Sannappa

II. Answer the following questions in a paragraph each:

Question 1.
How long did it take the narrator to learn the facts about the medicinal creeper? What does it signify?
Answer:
The Narrator was a good friend of Mara. He was told several unbelievable stories by Mara. But the narrator did not believe him and assumed that they were all cock and bull stories. But when he heard of Appanna’s account about a herb that if it was squeezed the milk became hard, he wanted to check it. So he plucked some leaves from the creeper and took them to his friend Chandra, a pathologist.

He told Chandra what he had heard about that plant. They decided to conduct the experiment and brought a litre of milk and put those leaves in the milk and mixed with mixer and poured into a vessel. After a few minutes the milk became firm and rubbery. So he came to believe in and learn the facts about the medicinal creeper.

It signifies that the narrator did not believe until it came from his own experience. Most of the educated ones become cynics and sceptics about the uneducated’s stories about medicinal creepers.

Question 2.
What does the incident of Mara’s wife throwing the leaves into the fire tell us about Indians in general?
Answer:
Once Mara and his friend laid a trap and caught a barking deer. As they had to divide it equally between them, they took it near to the stream and divided the meat. They wrapped their portions in some leaves and brought them home.

In Mara’s house they got ready to cook, but when Mara opened the packet to take out the meat. It was a surprise as instead of the meat, there was a live wild buck! when it saw Mara, it jumped up and ran out of his house.

When Mara was trying to catch it, as usual, Mara’s wife ignorantly took the leaves and threw them into the fire. This incident shows that Indians do not think of what happened and why? But they simply go according to the situations and never turn the circumstances to their advantage. This is the big weakness of Indians.

Question 3.
How was Krishna cured of his illness?
Answer:
Krishna was suffering from piles and met the narrator to get some help. But narrator only helped him with some money which was not enough for the treatment. But Krishna knew a Malayali Sadhu. This godman had treated Krishna on an earlier occasion when Krishna had smarted developing boils all over his body.

The godman had cured him with the barks of a tree. Krishna went in search of the godman, but he was too old and could not search for the medicinal creepers. He described the features of the plant to Krishna. Krishna went in search of the leaves and on the way he met the narrator and described about the leaves.

The narrator understood that those were the leaves which Mara and Appanna had tied to the nearest tree. Narrator took him to the plant and dug quite a bit to get the tuber. Krishna ground this root with milk and drank. In this way he was cured of piles within five days.

III. Answer the following questions:

Question 1.
Do you think that the author is suggesting that Indian herbal medicine is better/safer than allopathic medicine? Support your view.
Answer:
India is rich in herbal medicine but the tragedy is modem man does not know the use of all those herbs. Instead, he completely depends on allopathic medicine. In this story, the author is suggesting the effectiveness of herbal medicine with a few’ unbelievable stories. Now-a-days modem man thoroughly neglects the uses of trees and plants and forgets the ayurvedic treatment. Infact ayurvedic is a more powerful treatment with no side effects. Allopathy has a lot of side effects to the patient and moreover, it is costly.

But modern man due to his status and unawareness of ayurvedic advantages depends on allopathy. He has completely lost his faith in traditional medicine. A good example is, that the father of ayurvedic medicine was an Indian named “Bodhi” who had written a book on ayurvedic medicine, but the irony is that Indians do not even know his name, whereas in China he is famous.

Today, it is the responsibility of every Indian to preserve every ayurvedic herbal and to use them. If it is practiced in homes, no Indian will get disease and the future of India could be free of diseases forever.

Question 2.
What has made the modern man lose the knowledge of traditional medicine? Do you think Ayurveda will make a comeback in a successful way?
or

Question 3.
“Our natural resources are our vital resources”. Explain the statement in the light of several developmental projects that are being promoted today.
Answer:
In the present story, we realise the importance of natural resources such as plants and their medicinal value. However, when we speak of developmental projects, they are directed towards technology and allopathic medicines. Only a few measures are taken to create awareness

among people about the immense potential of Ayurvedic medicine. In the name of development,
we are losing.a lot of natural resources such as land and trees towards utility of space for
construction purposes.

While doing so, we are forgetting the key point – the natural resources such as trees that bring rain and prove as starting materials for making medicine. Also through development, we are infact giving rise to more diseases. The atmosphere that we had in

historic times was far healthier and safer than the atmosphere we breath in today. Thus,
whatever development we are aiming for, should primarily revolve around the lines of conserving
our natural resources and its utilization.

Vocabulary

I. A note on spelling

Many words are spelt differently in British and American English.

British English	American English
realise	realize
marvellous	marvelous
criticising	criticizing
litre	liter
mould	mold

Can you think of other words? List them.

II. Word Formation

We form new words from the existing ones. What do we do for it? Generally we add affixes. There are two kinds of them. They are prefixes and suffixes. Look at the following examples.
medicine + al = medicinal
imagine + ry = imaginary
sudden + iy =  suddenly
use + less = useless
simple + y . = simply
treat + ment = treatment
poison + ous = poisonous
believe + able = believable
explain + tion = explanation
un + usual = unusual
dis + appear = disappear
anti + biotic = antibiotic
dis +  interest = disinterest
re + move = remove
im + partial + ity = impartiality

Prefixes added to the beginning of a root word while suffixes are ad the essay, words that are formed by adding either prefix or suffix or both.

Form words with the roots given under column A with prefixes and suffixes given under B.

Answer:

1st PUC English Textbook Answers 

Karnataka 1st PUC English Textbook Answers Reflections Chapter 5 Money Madness

I. Answer the following questions in a word, a phrase or a sentence each:

Question 1.
How do people feel when they give
(a) one pound?
(b) ten pounds?
Answer:
(a) Feel painful.
(b) Feel trembling movement.

Question 2.
“Money has got us down” could mean,
(a) it has ruined us.
(b) it has made us tremulous.
(c) it has made us greedy.
(d) it has made us its slaves.
Answer:
(d) it has made us its slaves.

Question 3.
How are people without money, usually treated?
Answer:
The people without money are treated as foodless and shelterless.

Question 4.
What things should be made available free of cost?
Answer:
Bread, fire and shelter should be made available free of cost to all.

Question 5.
The speaker is frightened of
(a) having no money.
(b) money madness.
(c) eating dirt.
Answer:
(b) money madness.

Question 6.
What happens if we do not regain our sanity about money?
Answer:
If we do not regain our sanity about money we may start killing each other.

II. Answer the following questions in a paragraph each:

Question 1.
How does money trigger fear in an individual?
Answer:
The poem focuses on how man gives importance to money. When the moneyless man is treated as poor and powerless, he definitely fears to lose the money. Obviously, he gives much importance to money. Each and every man goes behind money and breaks all relationships. In future, there may not be any sentiments between people. So, when all the people try to make money, certainly lack of money triggers the fear in an individual. So every individual tries to acquire it by some means or the other.

Question 2.
How does an individual measure the value of another individual in terms of money?
Answer:
When all the people go behind money, money becomes the most significant thing in society. So man automatically tries to accumulate money to lead his life happily. This money madness spreads widely among all the people in the society. Money leads the society and gets respect and power and rules the society. So, man to get all these, accumulates money. And those who have all these, get respect in society. So, man measures the value of others in terms of money.

III. Answer the following questions:

Question 1.
Collective madness about money affects the individuals also. How does the poem bring this out?
or

Question 2.
What according to the poet, might happen if people do not regain sanity about money? What solution does he offer?
Answer:
The poem Money Madness by D.H. Lawrence focuses on how man becomes more materialistic and loses die values and sentiments in society. He respects money over relationships. Society goes on measuring a man in terms of money.

A man who does not have money, docs not get respect from society and those who have money get respect and are obeyed by all. So to get all these social status, man gives much importance to money and he never helps other fellow beings who may be in difficulties.

The poet says that man has this money madness and it is widely spread among men. He affirms that if society goes behind money, individual too goes behind the same. He confirms that no man gives a pound without pain and no man gives a ten pounds without trembling, and the man loses his generosity.

Man makes money, but money makes man and many things. So, the man fears money and tries to accumulate it and respects it instead of other men. The poet also warns that money-less people should not be treated with neglect and should not be treated based on status.

The poet fears for the man kind that if it measures another man only in terms of money, there would be no future for human relationships. If people do not regain sanity about money, certainly money has got men down to become it’s slaves. So, the poet offers a genuine solution that bread should be free, shelter should be free and fire should be free to all the people in the world. In the overall view of the poem, the poet worries about man’s greed about money and offers a better solution for a better tomorrow.

1st PUC English Textbook Answers 

Students can Download 1st PUC Economics Previous Year Question Paper March 2020 (North), Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Previous Year Question Paper March 2020 (North)

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Alternative uses of resources give rise to the problem of
(a) Rights
(b) Price
(c) Choice
(d) Chance
Answer:
(c) Choice

Question 2.
Range is the
(a) Difference between the largest and the smallest values of a variable
(b) Average of the largest and smallest observation.
(c) Ratio of the largest and smallest values of a variable.
(d) None of the above
Answer:
(a) Difference between the largest and the smallest values of a variable

Question 3.
During British rule more than half of India’s foreign trade was restricted to
(a) Britain
(b) Iran
(c) China
(d) Srilanka
Answer:
(a) Britain

Question 4.
The act provides guaranteed wage employment to every poor household for a minimum of 100 days a year is called.
(a) PMRY
(b) SJSRY
(c) MGNREGA
(d) SGSY
Answer:
(c) MGNREGA

Question 5.
Urban people are mainly engaged in the
(a) primary sector
(b) service sector
(c) mining
(d) agriculture
Answer:
(b) service sector

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
_________ of the table contains actual data.
Answer:
Body

Question 7.
Using current year quantities as weights is known as
Answer:
Paasche Price Index.

Question 8.
Taxes on incomes of individuals is called ______
Answer:
Direct tax

Question 9.
Infrastructure facilities can be classified into __________ types.
Answer:
Two

Question 10.
Forests are _________ resource.
Answer:
Natural.

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A	B
1. Pilot survey	(a) India and the knowledge economy
2. Median	(b) Institutional source
3. Subsidy	(c) Pretesting of questionnaire
4. World Bank	(d) The monetary assistance for production activities
5. NABARD	(e)          Positional value

Answer:
1 – c
2 – e
3 – d
4 – a
5 – b

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is mean deviation?
Answer:
Mean deviation is the arithmetic nican of the differences of the values from their average. The average used is either arithmetic mean or median.

Question 13.
Mention the last step in developing a project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
Give the meaning of infant mortality rate.
Answer:
Infant mortality rate is the death of babies per thousand live births.

Question 15.
Expand ILO.
Answer:
International Labour Organisation.

Question 16.
Name the campaign initiated in China with the aim of industrialisation.
Answer:
The Great Leap Forward campaign was initiated in ¡958 with the aim of industrialization.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention the two sources of data.
Answer:
Primary data and scconda data are the two sources of data.

Question 18.
Give the formula to find out mid-point.
Answer:
The formula to find out midpoint is as folIos:
Mid point = \(\frac{\text { Upper class limit }+\text { Lower class limit }}{2}\)

Question 19.
What kind of diagrams are more effective in presenting the following?
(a) Monthly rainfall in a year
(b) Composition of the population of Delhi by religion,
Answer:
(a) For the monthly rainfall in a year. simple bar graph can be used to represent in diagram.
(b) For the composition of population of Delhi by religion, component bar diagram or pie chart can be used to represent the data.

Question 20.
Calculate arithmetic mean from the following data.
Marks obtained by 10 students.
30, 62, 47, 25, 52, 39, 56, 66,12, 24
Answer:

Question 21.
What is negative correlation? Give an example.
Answer:
The correlation is said to be negative in the variables move in opposite directions.

Example:

• When the price of tomato increases, the demand for tomatoes decreases.
• More is the time spent for studies, less arc the chances of failure,

Question 22.
Mention the name of any four statistical tools.
Answer:
The most important statistical tools are the measures of central tendency, dispersion, correlation. bar diagrams. pie chart. histogram. etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before independence.
Answer:
The important export goods of India before independence were raw silk, cotton, wool, sugar. indigo, jute. etc.

Question 24.
List the factors that prevent the successful implementation of poverty alleviation programmes.
Answer:
The cm ment scholars, while assessing the poverty alleviations programmes, state these major areas of concern that prevent their successful implementation.

They are as follows:
(a) The benefits from direct poverty alleviation programmes have been appropriated by the non-poor
(b) The amount of resources allocated for poverty alleviation programmes is not sufficient
(c) These properties depend mainly on government and bank officials for their implementation. These are ill-motivated, inadequately trained, corruption prone and vulnerable
(d) The resources are inefficiently used and wasted
(e) There is also non-participation of local level institutions in programme implementation.

Question 25.
What are the two major sources of human capital in a country?
Answer:
Education and Health are two main sources of human capital. Education mises the standard and quality of living of people. It increases the production capacity and productivity of the workforce b enhancing their skills. Health indirectly helps in the economic development by supplying active energetic and healthy workforce for better production.

Question 26.
Give two examples of alternative market.
Answer:
The examples for the alternative market are:

• Rvthara Santhe in Karnataka.
• Rvthu Bazaar in Andhra Pradesh (Vegetable and Fruit markets)
• Apni Mandi in Punjab. Harvana and Rajasthan.

Question 27.
Name any four kinds of unemployment,
Answer:
The kinds of unemployment are as follows:

• Open unemployment
• Disguised unemployment
• Seasonal unemployment
• Underemployment
• Technical unemployment
• Frictional unemployment.

Question 28.
Which are the components of Indian system of medicine?
Answer:
The components of Indian systems of medicine (AYUSH) are as follos:

• Avurveda.
• Yoga
• Unani
• Siddha
• Naturopath
• Homeopathy.

Question 29.
Mention any four functions of the environment.
Answer:
The major functions of environment are as follows:
(a) The environment supplies both renewable and non-renewable resources. Renewable resources are those resources that can be used again and again. There will be a continuous supply of resources. Example. water. forest, land, etc.

Non-renewable resources arc those which get exhausted with extraction and use. Example, mineral resources like petrol, coal, iron ore, etc.

(b) The Environment assimilates waste. That means that environment absorbs the solid and liquid wastes created by humans and other living beings.

(c) The environment sustains the life on earth by providing both genetic and bio-diversities.

(d) Environment also provides aesthetic services like beautiful scenery of forest land, water falls, mountains like the Himalaya ranges, lagoons, glaciers, valleys, etc.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics helps to study economics.
Answer:
Statistics play s a very important role in the field of economics It helps in the study of economics in many ways:
(a) It helps to understand economic problems: By using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts. Once the causes of a problem are identified. it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance. saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(e) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example, it would be impossible to remember the income of all the people of a country, But we can remember average income i.e. per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will be impact on inflation when the government has more budget deficits. Such situations can be dealt, if any relationship exists bctwecn the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In otherwords, one must know what could be the expected level of consumption in 2016-17, So. the statistical tools to predict consumption in 20 16-17 could be based on the data of consumption of past years obtained by surveys.

Question 31.
Write briefly about the Census and NSSO.
Answer:
Census : The census of India provides the most complete and continuous demographic record of population. The census is being regularly conducted every ten years since 1881. The first census after independence was conducted in 1951. It is also called as the method of complete Enumeration. The essential feature of this method is that it covers every individual unit in the entire population. In this method a house-to-house enquiry is carried out, covering all households in India. Demographic data on birth and death rates, literacy, employment, life expectancy, size and composition of population etc. are collected and published by the Register General of India.

The census officials collect information on various aspects of population such as the size, density, sex ratio, literacy, migration, rural urban distribution, etc. Census data is interpreted and analysed to understand many economic and social issues in India.

NSSO : There are some agencies both at the national and state level to collect, process and tabulate the statistical data. One of such agencies is NSSO i.e., National Sample Survey Organisation.

The NSSO was established by the Government of India to conduct nation-wide surveys on socio-economic issues. The NSSO does continuous surveys in successive rounds. The data collected by NSSO are released through reports and its quarterly journal Sarvekshana. NSSO provides periodic estimates of literacy, school enrolment, utilization of educational services, employment unemployment, manufacturing and service sector enterprises, morbidity, child care, utilization of the public distribution system, etc.

The NSSO also collects details of industrial activities and retail prices for various goods. They are used by Government of India for planning purposes.

Question 32.
Write a note on classification of data.
Answer:
The raw data is classified in various ways depending on the purpose. Generally data can be classified as follows:
(a) Chronological classification: When the data is grouped according to time, it is called as chronological classification. In SLICh a classification, data are classified either in ascending or in descending order ith reference to time such as years. quarters. months weeks days. etc.

(b) Spatial classification: 1f the data arc classified with reference to geographical locations such as countries. states. cities, districts. etc.. it is called spatial classification.

(c) Qualitative classification: When the data arc classified on the basis of certain attributes or qualities like literacy, religion, gender. marital status etc.. then it is called qualitative classification. These attributes can be classified on the basis of either the presence or the absence of a quantitative characteristic.

(d) Quantitative classification: If the classification of data is done on the basis of certain characteristics like height. weight. age. income, marks of students etc., it is called as quantitative classification,

Question 33.
The yield of rice per acre for 10 districts of a state, are as under:

Calculate mean deviation from median.
Answer:
Values in ascending order
X: 12 12 12 15 18 18 22 23 29 34

Median = Size of \(\left(\frac{N+1}{2}\right)^{t h}\) item
Median = Size of \(\left(\frac{10+1}{2}\right)^{t h}\) item
= Size of \(\left(\frac{11}{2}\right)^{\text {th }}\) item
= 5.5th item

To get median. we need to add 5th and 6th items and divide it by 2.

Question 34.
Draw scatter diagram and interpret.

Answer:

Interpretation: There is a perfect positive correlation between X and Y.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
Indicate the volume and direction of trade at the time of independence.
Answer:
The volume of foreign trade includes the quantities of goods and scrvices which were being exported and imported The direction of trade refers to the countries which were involved during British rule. The volume and direction of India’s foreign trade at the time of independence is as follows:

During the regime of colonial government, India became an exporter of primary goods like raw silk, cotton. wool, sugar, raw jute etc., and an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods like light machineries produced by the factories at Britain.

Britain had maintained monopoly over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain. while the rest was allowed with a few other countries like China. Srilanka, Iran, etc. The opening of the Suez Canal further intensified British control over India ‘s foreign trade.

Question 36.
Write a short note on Green revolution.
Answer:
Green revolution refers to the spectacular increase in the agricultural production during 1960s. There was a large scale production of food grains resulting from the Lise of high ieldrng variety seeds especiall wheat and rice. The USC of these seeds required the use of fertilizer and pesticides in correct quantities as well as regular supply of water. The application of these inputs in correct proportions is very vital.

The farmers to could benefit from HYV seeds required reliable irrigation facilities as well as the financìal support to purchase chemical fertilizers and pesticides. As a result, in the first phase of the green revolution during the 1960s and 1970s. the use of HYV seeds as restricted to the more affluent states such as Pun jab. Andhra Pradesh and Taniil Nadu, Further, the use of high yielding variety seeds primarily benefitted the wheat-growing regions only, During the mid-1970s to mid-1980s. the llYVtechnologv spread to a larger number of states and benefited more variety of crops. The spread of green revolution technology enabled India to achieve self-sufficiency in food grains: vc no longer had to be at the mercy of America. or any other country for meeting our nation’s food requirements.

Question 37.
Briefly explain the background of economic reforms in India.
Answer:
There was a financial crisis that persisted since 1980. We know that to introduce various policies, the government has to generate funds from various sources like taxation, running public sector enterprises etc. When the expenditure is more than the income, the government takes loans to balance the deficit from banks and also from people within the country and from international banks,

The various development policies require huge finance. But there was a scarcity of funds. Even though the revenues were very low, the government had to overshoot its revenue to meet the challenges like unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue. At the same time, the government could not generate funds internally. When the government wàs spending a large share of its income on areas which do not provide immediate returns, there was a need to use the rest of its revenue in a highly efficient manner, The income from public sector undertakings was also not very high to meet the growing expenditure.

Further, the foreign exchange. borrowed from other countries and international banks was spent on meeting consumption needs. No sincere efforts were made to reduce expenditure and to increase our exports.

During late 1980’s government expenditure exceeded its income. Prices of many essential goods increased. Imports grew at a very large extent. Foreign exchange reserves declined considerably and the same fall short to finance our imports for more than two weeks. There was shortage of funds even to pay interest to international lenders and at the same time no country or international bank was ready to lend any more to India.

At this situation. India approached the International Bank for Reconstruction and Development and International Monetary Fund and received seven billion dollars as loan to manage the crisis. To avail loans, these international banks expected India to liberalise and open up its economy by removing restrictions on the priate sector, reduce the role of government in man areas and remove trade restrictions between India and other countries.

India had to agree to these conditions of IBRD and IMF and announced the new economic policy which included liberalization, privatization and globalization.

Question 38.
Explain the drawbacks of agricultural market in India.
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation. packaging, grading and dístnbution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India are as follows:

• Long chain of middlemen taking away the profit of farmers
• No proper storage facilities to protect the agricultural products
• Faulty methods of weighing/encasing agricultural crops
• Manipulation of accounts
• Farmers are forced to sell their products at low prices due to lack of information.

Question 39.
Write a note on private health infrastructure in India.
Answer:
Nowadavs private sector has been playing a dominant role in medical education and training. medical technology and diagnostics. manufacture and sale of phannaceuticals. hospital construction and the provision of medical services.

• More than 70% of the hospitals in India are run by the private sector
• The private sector controls nearly two-fifth of beds available in hospitals
• Nearly 60% of dispensaries are run by the private sector
• The private sector provides healthcare for 80% of outpatients and 46% of in-patients
• Due to liberalization policy of Government of India. many non-resident Indians and industnal and pharmaceutical companies have set up state-of-art super-specialty hospitals to attract India’s rich and medical tourists.

Question 40.
What are the various indicators of human development?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. Ifthc HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words, it is the longevity of life A high value of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentags, The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators ofhurnan development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR is high it indicter’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per I lakh live births. If MMR is low, it indicates a better human development.

(g) Population using improved sanitation: ¡f the percentage of population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: 1f the percentage of population using sustainable access to improved water source is high, it is a good indicator of human development.

(i) People living below poverty line: ¡f less people are living belo poertv line, then it is a good indicator of human development.

(j) Percentage of children undernounshed: If the number of undernourished children is diminishing, then it is a good indicator of human development.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Construct Ogive by using the following data.

Marks (X)	Number of students (f)
0-20	6
20-40	5
40-60	33
60-80	14
80-100	6
Total	64

Answer:
Ogie is also called cumulative frequency curve. As there arc two types of cumulative frequencies. for example less than’ type and morc than type. accordingly thcrc are two ogives for any grouped frequency distribution data. Here in place of simple frequencies as in the case of frequency polygon, cumulative frequencies are plotted along Y axis against class limits of the frequency distribution. For less than ogives the cumulative frequencies arc plotted against the respective upper limits of the class intervals whereas for more than ogives the cumulative frequencies arc plotted against the respective lower limits of the class interval.

An interesting characteristic of the two ogives together is that their intersection point gives tIc median of the frequency distribution. The following graph represents the ogives. As the shapi.s of the two ogives suggest. less than’ ogive is never decreasing and ‘more than’ ogive is never increasing.

Question 42.
Find the median of the following data.

Answer:

Median = Size of \(\left(\frac{N}{2}\right)^{t h}\) item = Size of \(\left(\frac{50}{2}\right)^{\text {th }}\) item
= Size of 25th item ie., 50 – 60

To calculate the exact median the following formula is used:

Question 43.
Calculate the standard deviation for the following distribution.

Classes	Frequencies
0-20	9
20-40	12
40-60	20
60-80	14
80-100	3
	50

Answer:

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Briefly explain the important area of liberalisation.
Answer:
Liberalisation was one of the reforms of New Economic Policy of 1991. It was introduced to put an end to the restrictions and open up various sectors of the economy. The following are the important areas of liberalization:
(a) Deregulation of industrial sector: The liberalization policy removed many restrictions enforced on industrial sector. Industrial licensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defence equipments, atomic energy generation and railway transport. Many goods produced by the small scale industries have now been dereserved.

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserv e Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allow ed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms which are concerned with government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income

The rate of corporation tax (tax on income of companies) which was very high earlier has been gradually reduced. A new tax called Goods and Services Tax (GST) has been introduced from 1.7.2017 to bring uniformity in indirect taxes.

In order to encourage better compliance on the part of tax payers, many procedures have been simplified and the rates also substantially lowered.

(d) Foreign exchange reforms: During 1991, the Government took an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange. It also set the tone to free the determination of rupee value in the foreign exchange market from government control. At present, the market forces i.e., demand and supply, determine the exchange rates.

(e) Trade and investment policy reforms: A new trade and investment policy under liberalization strategy was made to increase international competitiveness of industrial production and a foreign investments and technology into the economy. The aim was also to promote the efficiency of the local industries and the adoption of modem technologies.

To protect Indian industries, the government was following quantitative restrictions on imports which encouraged tight control over imports. At the same time, tariffs were very high. These policies reduced efficiency and competitiveness which led to a slower growth of manufacturing sector.

The main objectives of Trade and Investment Policy were:

• To remove quantitative restrictions on imports
• To reduce quantitative restrictions in exports
• Reducing tariff rates
• Removal of licensing system.

Import licensing was abolished except in case of hazardous and environmentally sensitive industries. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed.

Export duties have been removed to increase the competitive position of Indian goods in the international markets.
A process of disinvestment was also initiated by selling of part of equity shares of public sector enterprises to the public.

Question 45.
Discuss the following as a source of human capital formation.
1. Health infrastructure
2. Expenditure on migration.
Answer:
(a) Health infrastructure: The various forms of health expenditures are as follows:

• Preventive medicine vaccinations to prevent deadly diseases
• Curative medicine obtaining medical treatment during illness
• Social medicine spread of awareness about keeping good health and its importance.
• Provision of clean drinking water and good sanitation.

Healths individuals are a food source of human capital as they directly contribute for regular and higher productivity of labor. A sick laborer without access to medical facilities has to remain absent from work. This leads to loss of productivity. Hence, expenditure on health is an important source of human capital formation.

(b) Expenditure on migration: People migrate from their native places in search ofjobs which may bring higher salaries, Unemployment is the only reason for rural-urban migration in India. Technically qualified persons like engineers and doctors migrate to other countries to earn better income Though there is a high cost of transport, high cost of living and other factors, the enhanced income will motivate people to migrate. Hence. expenditure on migration is also a source of human capital formation.

Question 46.
What role does the government play in generation of employment opportunities in India.
Answer:
Government is making efforts to generate employment opportunities to unemployed persons through two categories i.e., direct and indirect.

In the first category, government is directly providing job opportunities by employing people in various departments for administrative purposes, industries, hotels, transport corporations etc.

In the second category, the Government had introduced a New Economic Policy in 1991 in the form of LPG i.e., Liberalization, Privatisation and Globalisation which has provided ampl ; opportunities to private entrepreneurs to start their own production centre which are creating employment opportunities to millions of people in India.

Further, when output of goods and services from government enterprises increase, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For instance, when a government owned steel company increases its output, it will result in direct increase in employment in that government company, simultaneously, private companies, which purchase steel from it will also increase their output and thus employment. This is indirect generation of employment opportunities by the government initiatives in the economy.

There are many programmes that the successive governments have implemented to alleviate poverty through employment generation. They are known as Employment Generation Programmes. They are as follows:

Self-employment programmes: The major Self Employment Programmes are:

• Swarnajayanti Gram Swarozgar Yojana (SGSY): This program aims at providing financial assistance to self help groups which then decide whom the loan is to be given to for self-employment activities among the members.
• Swarnajayanthi Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities, for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes, financial assistance is given to families or individuals. Now, programs are encouraged to form self help groups.
• Pradhana Manthri Rozgar Yojana (PMRY): The educated unemployed from low-income families in rural and urban areas can get financial help to set up some enterprise that generates employment under this scheme.

Wage employment programmes: The major national programmes to generate w’age employment are as follows:

• National Food for Work Programme (NFWP)
• Sampoorna Grameena Rozgar Yojana (SGRY)
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): It provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days in a year.

All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, assistance for constructing houses, laying of rural roads, development of wastelands.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Write a note on SENSEX.
Answer:
Sensex is the short form for the of Bomba’ Stock Exchange Sensiti’.e Index with 1978-79 as a base. The value of the sensex is with reference to this period. It is the benchmark index for the

Indian stock market, It consists of 30 stocks that represent LS sectors of the economy and the companies listed are leaders in their respective industries. If the Sensex rises, it indicates that the market is doing cll and investors expect better earnings from companies. It also indicates growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is ide1v used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Question 48.
Write the chart of poverty line.
Answer:

Chronic poor: These are the persons who always remain poor for a long period of time. For example. casual workers, agricultural laborers, rag pickers. beggars. etc. They include always poor and usually poor.

Transient poor: The transient poor are those people who are rich most of the time but may sometimes have a patch of bad luck. They also include churning poor who regularly move in and out of the poverty line example. small farmers and seasonal workers and occasionally poor who are rich most of the time.

Non-poor: These are the groups of people who live above the poverty line and they are never poor.

Question 49.
Prepare a list of causes of land degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing main due to the factors mentioned below:
(a) Deforestation, ie. reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over exploitation of forest products such as fuel wood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in india are not properly planned and managed.
(h) Overexploitation of ground water for various competing utilities like human settlement, industrialization, etc. .
(i) No proper introduction of crop rotation techniques and organic farming.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

Land is indispensable for human settlement. If proper care is not taken for the conservation of land and water, there shall be severe scarcity of water and natural resources in future which may lead to conflict among the countries.

Students can Download 1st PUC Economics Previous Year Question Paper March 2020 (South), Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Previous Year Question Paper March 2020 (South)

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Alternative uses of resources give rise in the problem of
(a) Rights
(b) Price
(c) Choice
(d) Chance
Answer:
(c) Choice

Question 2.
What is the graphical measure available to measure dispersion.
(a) Lorenz curve
(b) Marshal curve
(c) Production curve
(d) Non of the above
Answer:
(a) Lorenz curve

Question 3.
In India census is carried out once in
(a) 5 years
(b) 10 years
(c) 1 year
(d) 2 years

(b) 10 years

Question 4.
It is an agricultural allied activity
(a) Poultry
(b) Cottage industry
(c) Small industry
(d) Tourism
Answer:
(a) Poultry

Question 5.
Urban people are mainly engaged in the
(a) Primary sector
(b) Service sector
(c) Mining
(d) Agriculture
Answer:
(b) Service sector

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Frequency distribution of discrete frequency is called ________________
Answer:
Frequency array

Question 7.
Arithmetic line graph is also called __________
Answer:
Time Series Graph

Question 8.
There are ___________ Quartiles in a series.
Answer:
3

Question 9.
Infrastructure facilities can be classified into types.
Answer:
Two

Question 10.
The great leap forward campaign was initiated in the year
Answer:
1958

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A	B
1. Personal Interview	1. The monetary’ assistance given by government for production activities
2. W.P.I	2. Sustainable development
3. Subsidies	3. More expensive
4. Educational achievement	4. Whole sale price index
5. Bio pest control	5. Literacy rate

Answer:
1 -3;
2 -4;
3-1;
4-5;
5-2.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
Mention the last step in developing project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 13.
ILO – Expand.
Answer:
International Labour Organisation.

Question 14.
What is the liberalization?
Answer:
Liberalization refers to the removal restrictions and opening up various sectors of the economy by giving freedom to invest.

Question 15.
Give the meaning of poverty.
Answer:
Povert is a state of living where people are unable to get the basic necessities of life.

Question 16.
Give the meaning of infant mortality rate?
Answer:
Infant mortality rate is the death of babies per thousand live births.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention any two modes of collecting data.
Answer:
The two modes of collecting data are personal interview and mailing questionnaires.

Question 18.
How can you obtain a frequency curve?
Answer:
The frequency curve is obtained by drawing a smooth freehand curve passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon but it passes through them as closely as possible.

Question 19.
Calculate the arithmetic mean from the following data.
Marks obtained by 10 students

Answer:

Question 20.
Mention the types of Correlation.
Answer:
There are two types of correlation negative correlation and positive correlation. Again they are classified perfect positive and perfect negative correlations.

Question 21.
Mention the types of variable.
Answer:
There are two types of variables namely. Continuous variable and discrete variable.

Question 22.
Mention the name of any four statistical tools
Answer:
The most important statistical tools arc the measures of central tendency, dispersion, correlation. bar diagrams, pie chart, histogram. etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
What were the infrastructure facilities developed during colonial rule?
Answer:
The main infrastructure facilities developed during colonial rule were railways. ports. water transport. posts and telegraphs. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests.

Question 24.
What do you mean by carrying capacity of environment?
Answer:
Carrying capacity implies that the resource extraction is not above the rate of regeneration of the resource and the wastes generated are within the assimilating capacity of the environment.

Question 25.
Who are the Urban poor? Give example.
Answer:
Urban poor are those who live in cities and towns without basic needs. Example: push cart. vendors. Street cobblers. women who string flowers, rag pickers. vendors and beggars.

Question 26.
What are the various forms of health expenditure?
Answer:
The various forms of health expenditures as follows:

• Preventive medicine (vaccination)
• Curative medicine (medical intervention during illness)
• Social medicine (spread of health awareness)
• Provision of clean drinking water and good sanitation.

Question 27.
Mention the two benefits of organic farming.
Answer:
The main benefits of organic farming arc as follows:

• It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides) with cheaper ones
• it generates income through exports
• It contributes to ecological balance
• Provides healthy and chemical-free food.

Question 28.
Name the three sectors of the economy.
Answer:
The three sectors of the economy are as follows:

• Primary sector: It includes agriculture. mining, fishing, forestry, etc.
• Secondary sector: It includes all manufacturing industries.
• Service sector: It includes, transport. communication, banking. insurance, health. education. warehousing. etc.

Question 29.
Which are the economic infrastructures?
Answer:
The economic infrastructural facilities arc those which directly contribute towards economic development The main economic infrastructures are energy, transportation, communication. banking. insurance, warehouse. etc.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics helps to study economics.
Answer:
Statistics plays a very important role in the field ofeconomics It helps in the study of economics in many ways:
(a) It helps to understand economiC problems: B using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts. Once the causes of a problem arc identified. it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms. they become exact. Exact facts are more convincing than vague statements. For instance. saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(e) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example. it would be impossible to remember the income of all the people ofa country. But we can remember average income i.e., per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will be impact on inflation, when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In otherwords, one must know what could be the expected level of consumption in 2016-17. So. the statistical tools to predict consumption in 20 16-17 could be based on the data of consumption of past years obtained by surveys.

Question 31.
Briefly explain sampling errors.
Answer:
Sampling error refers to the differences between the sample estimate and the actual value of a characteristic of the population. Ills the error that occurs when you make an observation from the samples taken from the population.

Thus, the difference between the actual value of a parameter of the population and its estimate is the sampling error. It is possible to reduce the magnitude of sampling error by taking a larger sample.

For example. suppose the height of 5 students (in inches) are 50. 55. 60. 65. 70. the average height will be calculated by adding all these observations and dividing the sum by 5 then get 60 inches. If we select a sample of two students with height of 50 and 60 inches. then average height of sample will be 50 + 60 divided by 2. we get 55 inches. Here the sampling error of the estimate will be 60 (true value) minus 55 (estimate) 5.

Question 32.
Find the standard deviation for the following data.

Answer:

Question 33.
Draw scatter diagram


Intcrprctation: There is a perfect positive correlation between X and Y.
(For Blind students)

Mention the properties of correlation.
Answer:
The following are the major properties of correlation coefficient:

• Correlation ‘r’ has no unit. it is a pure number. It meaiis units of measurement are not part of r.
• A negative value of r indicates an inverse relation. A change in one variable is associated with change in the other variable in the opposite direction. For instance, when price of tomato increases, its demand decreases.
• If ‘r’ is positive the two variables move in the same direction. When the price of coffee rises, a substitute of tea. the demand for tea increases.
• The value of the correlation coefficient lies between minus one and plus one. (-1 ≤ r ≤ 1).
• If r = O, the two variables are uncorrelated. There is no linear relation between them.
• However, other types of relations may be there.
• If r =1 or r = —1. the correlation is perfect. The relation between them is exact,
• A low value of r indicates a weak linear relation. Its value is said to be low when it is close to zero.
• The magnitude of r is unaffected by the change of origin and change of scale.

Question 34.
Differentiate between Continuous and discrete variables.
Answer:

Continuous Variable	Discrete Variable
It can take any numerical value.	It can take only certain values.
It may take integral values, fractional values and values that are not exact fractions.	Its value changes only by finite ‘jumps’. It ‘jumps’ from one value to another, but does not take any intermediate value.
For example, the height of a student, as he grows say from 100 to 150 cm. would take all the values in between 100 and 150.	For example, a variable like the ‘number of girls in a class’, for different classes, would assume values that are only whole numbers. It cannot take any fractional value like 0.5 because ‘half of a student’ is absurd.
The variable is capable of manifesting in every conceivable value and its values can also be broken down into infinite gradations.	It takes a value change from 100 to 101. 102 etc, but fractions are not taken it i.e., there cannot be 100.1, 100.5 etc.
Other examples of a continuous variable are weight, time, distance, etc.	Other examples for a discrete variable are population, number of cars, buses and number appearing on a dice.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
The traditional handicraft industries were ruined under British Rule. Justify this statement.
Answer:
Yes. the traditional handicrafts industries were ruined under British rule. The decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods.

The British imposed heavy duties on Indian handicrafts, so that the became more expensive than British woolen and silk manufacturers. Thc followed a policy of dut free export of raw materials and import of finished goods. Apart from these, Indian handicrafts had to face competition from machine made goods from Britain.

India could not develop a sound industrial base under the colonial rule. Even as the country ‘s world famous handicraft industries declined, no corresponding modem industrial base was allowed to come tip to take pride of place so long enjoyed by the Indians. The intention of British was to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain and to turn India into a market for their finished products of those industries, so that their continued expansion could be ensured to the maximum advantage of their home country.

Question 36.
Explain any two of the objectives of five year planning.
Answer:
The main goals of the five year plans are Growth, modernization, self-reliance and equity. They can be illustrated as follows:
(a) Growth: It refers to the increase in the gross domestic product. It also implies that the increase in the country’s capacity to produce the output of goods and services within the country, It includes larger stock of productive capital or a larger size of supporting services like transport and banking or an increase in the efficiency of productive capital land services.

A good indicator of economic growth, in the language of economics, is a steady increase in the gross domestic product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy, namely agricultural sector, the industrial sector and the service sector.

(b) Modernization: Adoption of new technology is called as modernization. To increase the production of goods and services producers have to adopt new technologies. For example, a farmer can increase the output on his farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new types of machineries.

Modernisation does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men. In a traditional society, women are supposed to remain at home while men work.

(c) Self-reliance: The first seven five year plans gave importance to self-reliance Self-reliance refers to avoiding imports of those goods which could be produced in India itself. This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is a well-known fact that, people who were recently freed from foreign domination should give importance to self-reliance.

(d) Equity: Growth with equity is one of the objectives of planning. A country can have high economic growth, the most modern technology developed within the country itself but still have most of its people living in poverty. it is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and self-reliance, equity is also important. Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced.

Question 37.
Briefly explain the financial sector reforms.
Answer:
The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers. mutual funds and pension funds arc now allowed to invest in Indian financial markets.

Question 38.
Explain the employment generator programming of poverty alleviation in India.
Answer:
The income and employment generation approach was started during the third five-year plan. It is based on specific poverty alleviation and employment generation aspects.
(a) Self-employment programmes: The major self-employment programmes are:
Swarnajayanti Grani Swarozgar Yojana (SGSY): This programme aims at providing financial assistance to self-help groups which then decide whom the loan is to be given to for self-employment activities among the members.

• Swarnajayanthi Shahari Rozgar Yojana (SJSRY): ¡t aims at creating employment opportunities for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes. financial assistance was given to families or individuals, Now, programmes are encouraged to form self help groups.
• Pradhana Manthri Rozgar Yojana (PNIRY): The educated unemployed from Low-income families in rural and urban areas can get financial help to set up any kind of enterprise that generates employment, under this scheme.

(b) Wage employment programmes: The major national programmes to generate wage employment arc as follows:

• National Food for Work Programme (NFWP)
• Sampooma Gramccna RozgarYojana ( SGRY).
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): it provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days ¡n a year,

Question 39.
Explain the defects of the agricultural market.
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation. packaging, grading and distr4bution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India arc as follows:

• long chain of middlemen taking away the profit of farmers
• No proper storage facilities to protect the agricultural products
• Faulty methods of weighing/measuring agricultural crops
• Manipulation of accounts
• Farmers are forced to sell their products at low prices due to lack of information.

Question 40.
What are the various indicators of the human development index?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. If the HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words, it is the longevity of life. A high value of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentages. The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators of human development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR . is high it indicator’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per 1 lakh live births. If MMR is low, it indicates better human development.

(g) Population using improved sanitation: If the percentage of the population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: If the percentage of the population using sustainable access to an improved water source is high, it is a good indicator of human development.

(i) People living below the poverty line: If fewer people are living below the poverty line, then it is a good indicator of human development.

(j) Percentage of children undernourished: If the number of undernourished children is diminishing, then it is a good indicator of human development

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
What are the parts of a Table? Explain.
Answer:
When data is represented in rows and columns, it is called tabulation. To construct a table, it is important to know the different components of a good statistical table. When all the components are put together systematically, they form a table.

Tabulation can be done using one way. two way or three-way classification depending upon the number of characteristics involved.

A good table should have the following parts:
(a) Table number: Table number is given to a table for identification purposes. If more than one table is presented, it is the table number that distinguishes one table from another. It is given at the top or at the beginning of the title of the table.

(b) Title: The title of the table gives about the contents of the table. It has to be very clear, brief and carefully worded, so information interpretations made from the table are clear and free from any confusion.

(c) Captions: These are the column headings given as designations to explain the figures of the column.

(d) Stubs: These are headings given to row s of the table. The designations of the row-s are also called stubs or stub items and the left column is known as stub column.

(e) Body of the table: It is the main part and it contains the actual data. Location of any one data in the table is fixed and determined by the row and column of the table.

(f) Headnote/Unit of measurement: The units of measurement of the figures in the table should always be stated along w ith the title. If figures are large, they should be rounded off and the method of rounding should be indicated.

Question 42.
Calculate co-efficient of Quartile deviation for the following distribution.

Answer:


Now to calculate Q₁
Q₃ = Size of \(\left(\frac{3(n)}{4}\right)^{t h}\) item = Size of \(\frac{3(88)^{t h}}{4}\) item
= Size of \(\left(\frac{264}{4}\right)^{\text {th }}\) item = Size of 66th item

So the Q₃ falls in 76 – 80
To calculate the exact Q₃ the following formula is used:

Coefficient of QD = 0.08 161

Question 43.
Calculate Q₁, Q₂ and Q₃ from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32
Answer:

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the effects of Reforms in Agriculture.
Answer:
The economic reforms of 1991 have not been able to benefit agriculture, where the growth rate is not up to the expected level.

The public scctor investment in agricultural sector. particularly in infrastructural development like irrigation. power. roads, market linkages and research and extension has fallen during in the reform period.

The removal of fertilizer subsidy has lcd to an increase in the cost of production, which has severely affected the small and marginal farmers.

This sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, removal of minimum support price and lifting of quantitative restrictions on agricultural products.

These have adversely affected Indian farmers as they now have to face increased international competition.

Further, due to export oriented polic strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in steel of production of food grains. This has resulted in increase in an prices of food grains.

Question 45.
Examine the role of education in the Economic Development of a nation.
Answer:
The education plays a predominant role in economic development of India in the following ways:
(a) It modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaviour of people. It gives inputs like what is right and what is wrong and contributes for taking sound and valuable judgments.

(b) Promotes science and technology: Education always provides the knowledge about latest technology to people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. By providing scope for latest techniques of production, it develops agriculture, industry, transport, power, etc.

(c) Increases mobility of labours: Education helps the labourers to search for more reward¬ing employment opportunities all over the w7orld. It helps to chooses a suitable career according to one’s educational qualifications. It makes them to move from country to country or state to state as and when required.

(d) Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It provides information about the past events in History and tells about the freedom struggle of great national leaders like Mahatma Gandhi, Bhagath Singh, Subhas Chandra Bose and others. It makes people to develop a sense of patriotism and helps them to adopt strategies of progress in life.

(e) Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. The general education includes Bachelor of Arts. Bachelor of Commerce, Bachelor in Business Administration, etc. at the degree level and technical education includes Bachelor in Engineering in different streams like mechanical, civil, electronic, electrical, computer, etc. All these contribute for the supply of skilled labour for tlie overall development of the country.

(f) Act as source of knowledge: Education is a house of know ledge for all purposes. Any¬thing to know we need to be literate. It helps people to take decisions on the basis of their know ledge gained in different stages while getting education .

(g) Develops moral values: As education provides number of stories and incidents people’s lives, people can definitely develop moral values. These moral values are included in their daily life. Some of the moral values arer not to sell adulterated products, in case of seller and in case of buyer, not to create inconvenience for others in their routine life and so on.

(h) Creates awareness about culture and politics: Education always provides complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. It helps them to preserve historical monuments, inscriptions and other valuable items. It also provides day-to-day information about politics when the person is literate.

Question 46.
What role does the government p!av in generating employment opportunities in India?
Answer:
Government is making efforts to generate employment opportunities to unemployed persons through two categories i.e., direct and indirect.

In the first category, government is directly providing job opportunities by employing people in various departments for administrative purposes, industries, hotels, transport corporations etc.

In the second category, Government had introduced a New Economic Policy in 1991 in the form of LPG i.e., Liberalization, Priviatisation and Globalisation which has provided ampl ; opportunities to private entrepreneurs to start their own production centre which are creating employment opportunities to millions of people in India.

Further, when output of goods and services from government enterprises increase, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For instance, when a government owned steel company increases its output, it will result in direct increase in employment in that government company, simultaneously, private companies, which purchase steel from it will also increase their output and thus employment. This is indirect generation of employment opportunities by the government initiatives in the economy.

There are many programmes that the successive governments have implemented to alleviate poverty through employment generation. They are known as Employment Generation Programmes.

They are as follows:
Self-employment programmes: The major Self Employment Programmes are:

1. Swarna Jayanti Gram Swarozgar Yojana (SGSY): This programme aims at providing financial assistance to self help groups which then decide whom the loan is to be given to for self-employment activities among the members.
2. Swarnajayanthi Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities, for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes, financial assistance is given to families or individuals. Now, programmes are encouraged to form self-help groups.
3. Pradhana Manthri Rozgar Yojana (PMRY): The educated unemployed from low-income families in rural and urban areas can get financial help to set up some enterprise that generates employment under this scheme.

Wage employment programmes: The major national programmes to generate wage employment are as follows:

• National Food for Work Programme (NFWP)
• Sampoorna Grameena Rozgar Yojana (SGRY)
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): It provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days in a year.

All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, assistance for constructing houses, laying of rural roads, development of wastelands.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Prepare a list of causes of land Degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing mainly due to the factors mentioned below:
(a) Deforestation. i.e. reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over exploitation of forest products such as fuel wood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in India are not properly planned and managed.
(h) Overexploitation of ground water for various competing utilities like human settlement, industrialization, etc.
(j) No proper introduction of crop rotation techniques and organic fanning.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

Land is indispensable for human settlement. 1f proper care is not taken for the conservation of land and water, there shall be severe scarcity of water and natural resources in future which may lead to conflict among the countries.

Question 48.
On the basis of data you have collected regarding the participation of women in your locality in the below mentioned categories construct a Pie Chart.

Status	Population
(a) Marginal Worker	12
(b) Main Worker	36
(c) Non-Worker	73

Answer:

Question 49.
Write a note on SENSEX.

Status	Population
(a) Marginal Worker	12
(b) Main Worker	36
(c) Non-Worker	73

Answer:
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the sensex is with reference to this period. It is the benchmark index for the

Indian stock market, It consists of3O stocks which represent 13 sectors of the economy and the companies listed are leaders in their respective industries. If the sensex rises. ¡t indicates that the market is doing well and investors expect better earnings from companies. It also indicates a growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of the weighted index of a sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collcctie consciousness of investors. This index is idely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Students can Download 1st PUC Economics Model Question Paper 7 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 7 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Economics is the study of mankind in of life.
(a) The ordinary business
(b) Extraordinary business
(c) The weekly business
(d) Special business
Answer:
(a) The ordinary business

Question 2.
Ogives can be helpful in locating graphically the
(a) Mode
(b) Mean
(c) Median
(d) None of these.
Answer:
(c) Median

Question 3.
Railway transport was introduced in India in the year
(a) 1835
(b) 1776
(c) 1850
(d) 1853
Answer:
(c)1850

Question 4.
Poverty line separates
(a) Poor and non-poor
(b) Rich and non-rich
(c) Poor and weak
(d) None of these
Answer:
(a) Poor and non-poor.

Question 5.
GDP stands for
(a) Gross domestic product
(b) Gross dollar price
(c) Gross domestic price
(d) None of these
Answer:
(a) Gross Domestic Product

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Two ends of a class are called ___________
Answer:
Class limits

Question 7.
A measure that divides a series into hundred equal parts is called ____________
Answer:
Percentiles

Question 8.
Tax on the income of an individual is called ___________
Answer:
Direct tax.

Question 9.
Infrastructure facilities can be classified into types.
Answer:
Two

Question 10.
_________ country has the largest workforce in agriculture.
Answer:
India.

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A	B
1. Pilot survey	(a) Consumer Price Index
2. CPI	(b) Milk Production
3. Quota	(c) Pretesting of questionnaire
4. World Bank	(d) Quantity of goods that can be imported
5. White Revolution	(e) India and knowledge economy

Answer:
1-c,
2-a,
3-d,
4-e.
5-b.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is dispersion?
Answer:
Dispersion refers to the extent to which values in a distribution differ from the average of the distribution

Question 13.
Why do we need statislical tools?
Answer:
Statistical tools are needed in our daily life and are used in the analysis of data pertaining to economic activities such as production. consumption. distribution, banking and insurance, trade. transport. etc.

Question 14.
Define jobless growth.
Answer:
During the late 1990s. employment growth started declining and reached the level of growth that India had in the early stages of planning. During thcse years. we also find a widening gap

Question 15.
Give the meaning of sustainable development.
Answer:
According to l3rundtland Commission. sustainable de elopment is the process of development which meets the needs of the present generation without compromising the ability of future generation to fleet their own needs”.

Question 16.
Which country lias the highest life expectancy?
Answer:
China.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention the two sources of data,
Answer:
Primary data and secondary data are the two sou rccs of data,

Question 18.
Give the formula to find out midpoint.
Answer:
The formula to find out midpoint is as foIlos:
Mid point = \(\frac{\text { Upper class limit }+\text { Lower class limit }}{2}\)

Question 19.
How can you obtain a frequency curve?
Answer:
The frequency curve is obtained b drawing a smooth freehand cune passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon but it passes through them as closely as possible.

Question 20.
Calculate the value of the median from the following figures.
X: 5 7 9 12 11 8 7 15 25
Answer:
We need to put in ascending order

Question 21.
What is negative correlation? Give an example,
Answer:
The correlation is said be negative when the variables move in opposite directions.

Example:

• When the price of tomato increases, the demand for tomatoes decreases.
• More is the time spent for studies. less are the chances of failure,

Question 22.
Write the role of the questionnaire in developing a project.
Answer:
The collection of data by using the primary method can be done by using a questionnaire or an interview schedule which may be obtained by personal interviews, mailing or postal surveys. phone, email, etc, Preparation of a well-balanced questionnaire will help the process of research simple, fast and accurate, It becomes the record of what is actually surveyed.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before independence.
Answer:
The important export goods of India before independence were raw Silk, cotton, wool, sugar. indigo, jute. etc.

Question 24.
Who are the rural poor? Give example.
Answer:
Rural poor are those people who live in villages without basic needs. Example land less labourers. Even if some have land. it is on I dry or aste land. Many do not get even two meals a day. They borrow from moneylenders or landlords who charge high rates of interest that leads to rural indebtedness.

Question 25.
State the meaning of human capital.
Answer:
Human capital refers to that part of population that possesses skills. kno ledge. education and experience. It also includes the ability of human beings to give their best and their ability to create economic alue for thìns.

Question 26.
Name the institutional sources of rural credit.
Answer:
The institutional sources of niral credit are as folÍows:

• Commercial Banks
• Regional Rural Banks (RRBs)
• Cooperative Societies
• Land Deeloprnent Banks.

Question 27.
What is unemployment according to NSSO?
Answer:
According to National Sample Survey Organisation (NSSO), imemployment is a situation in which all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or express their willingness or availability for work under the prevailing condition of work and remunerations.

Question 28.
What are the components of Indian systems of medicines?
Answer:
The components of Indian systems of medicine (AYUSH) are as follows:

• Avurveda.
• Yoga
• Unani
• Siddha
• Naturopathy
• Homeopathy.

Question 29.
Give the meaning of biopest control. Give examples.
Answer:
Bio-pest control is a method of using pesticides based on plant products and spreading awareness about various animals and birds which help in controlling pests. For example.
. Neem trees are useful to control pests, mixed cropping and growing different crops in successive years on the sanie land also helps.
. Snakes arc one of the important groups of animals which devour rats, mice and various other pests, as their food.
Similarly, large varieties of birds like owls and peacocks. pray upon vermin and pests. if these are allowed to dwell around the agricultural land, they can clear a large amount of pests including insects. Frogs and lizards are also usefùl in their regard.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics help to study economics.
Answer:
Statistics plays a very important role in the field of economics. It helps in the study of economics in many ways:
(a) It helps to understand economic problems: B using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts, Once the causes of a problem are identified, it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance, saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(c) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example. it would be impossible to remember the income of all the people of a country. But we can remember average income i.e., per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what i1l be impact on inflation, when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In other words, one must know what could be the expected level of consumption in 20 16-17. So. the statistical tools to predict consumption in 2016-17 could be based on the data of consumption of past years obtained by surveys.

Question 31.
Does sample survey provide better results than census? Give reasons for your answer.
Answer:
Yes. sample&sun’ey provide better results than census.

A sample refers to a group or section of the population from which information is to be obtained.
A good sample is generally smaller than the population and is capable of providing reasonably accurate information about the population at a much lower cost and shorter time.
Suppose you want to studs’ the average income of people in a particular state. according to the census method. we need to find out the income of even individual in the region, add thcrn up and divide by number of individuals to get the average inconic of people in the state, This method would require huge expenditure. as a large number of investigators are to be employed.

Altematively if a represcntatie sample of few individuals is selected from the state to find their inCome, it saves time. money and energy in the process of determination of income.

To sum up, sampling is considered a better method due to following reasons:

• It is more economical than the other techniques of collection of data
• Sample investigation can be done at a greater speed as it consumes less time
• When sampIig is conducted scientifically and carefully, it gives accuracy
• Planning. organ1ation and supervision can be conveniently managed which leads to administrative conveniencc.

Question 32.
Write a note on classification of data.
Answer:
The raw data are classified in various ways depending on the purpose. Generally, data can be
classified as follows:
(a) Chronological classification: When the data is grouped according to time, it is called as chronological classification. In such a classification, data are classified either in ascending or in descending order with reference to time such as years. quarters. months weeks days. etc.

(b) Spatial classification: if the data are classified with reference to geographical locations such as countries. states. cities. districts. etc.. it is called spatial classification.

(c) Qualitative classification: Vhcn the data arc classified on the basis of certain attributes or qualities like literacy. religion. gender. marital status etc.. then it is called qualitative classification. These attributes can be classified on the basis of either the presence or the absence of a qualitative characteristic.

(d) Quantitative classification: If the classification of data is done on the basis of certain characteristics like height. weight. age. income, marks of students etc., it is called as quantitative classification.

Question 33.
The yield of wheat per acre for 10 districts of one as state is under:

Answer:
First we need to write the yield of wheat in arc ascending order
x: 9 10 10 12 15 16 18 19 21 25
Median Size of \(\left(\frac{N+1}{2}\right)^{t h}\) item
= Size of \(\left(\frac{10+1}{2}\right)^{\text {th}}\) item
= Size of \(\left(\frac{11}{2}\right)^{t h}\) item
= Size of 55th item

To get median. we need to add the’ 5th and 6th items and the same divided b 2.
Median= \(\frac{5^{\text {th }} \text { item }+6^{\text {th }} \text { item }}{2}=\frac{15+16}{2}=\frac{31}{2}\) =15.5

Median = 15.51

Calculation of mean deviation from median

Mean deviation from median (MDM)
MDM = \(\frac{\Sigma|\mathrm{D}|}{\mathrm{N}}=\frac{43}{10}\) = 4.3
∴ IMDM = 4.3 tonnes

Question 34.
Draw a scatter diagram and interpret.

Answer:

Interpretation: There is a perfect positive correlation between X and Y.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘Drain of Indian wealth’ during colonial period?
Answer:
The most important feature of 1ndias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. It resulted in disadantage to the countrvs economy.

The essential commodities were not made available to Indians as the’ were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the British Government and the import of invisible items.

This is known as Drain of Indian health.

Question 36.
Give the meaning and importance of small scale industries.
Answer:
A small scale industry is defined with reference to the maximum inestment allowed on the assets of a production unit, A small scale industry is one where the investment is less than one crore rupees.

Small scale industries play a veiy important role in the economic development of India. It is a known fact that small scale industries are more labour intensive i.e.. they use more labour than the large scale industries and therefore, generate more employment.

Apart from the above, the small scale industries require less capital as they are small units. The are free from industrial unrest. They also depend on indigenous resources and need not depend on foreign resources. Small scale industries were also given concessions like lower excise dut and bank loans at lower interest rates.

Question 37.
Write a note on outsourcing.
Answer:
Outsourcing is a process in which a company hires regular service from external sources, usually from other countries, which was previously provided internally. It includes legal advice, computer service, advertisement, security, etc.

As a form of economic activity, outsourcing has intensified in recent years due to fast mode of the communication network. Many services like voice based business processes. record-keeping. accountancy, banking services, music recording. film editing. book transcription, clinical advice or e en teaching are being outsourced by companies in developed countries to India. The modem telecommunication links like internet. the text, voice and visual data in respect of these services is digitized and transmitted throughout the world. Most of the multinational corporations and small companies are outsourcing their services to India where they can be availed at a cheaper cost. The low wage rates and availability of skilled labour in India have made it a favorite destination for global outsourcing.

Question 38.
Explain the drawbacks of the agriculture market.
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation. packaging, grading and distribution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India are as follows:

• Long chain of middlemen taking away the profit of farmers
• No proper storage facilities to protect the agricultural products
• Faulty methods of weighing/reasoning agricultural crops
• Manipulation of accounts
• Farmers are forced to sell their products at low prices due to lack of information.

Question 39.
Write a short note on women health in India.
Answer:
Women constitute about 50% of the total population in India. They suffer many disadvantages as compared to men in the areas of education, participation in economic activities and health care.

The decline in the child sex ration in the country from 927 in 2001 to 914 in 2011, points to the growing incidence of female foeticide in the country. Close to 3 lakh girls under the age of 15 are not only married but have already borne children at least once. More than 50 % of married women between the age group of 15 to 49 have anemia and nutritional anemia caused by iron deficiency. which has contributed to 19% of maternal deaths. Frequent abortions are also a major cause of maternal morbidity and mortality in India.

Question 40.
What are the various indicators of human development?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. If the HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words. it is the longevity of life. A high vaLue of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentags. The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators of human development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR is high it indicter’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per 1 Iakh live births. If MMR is low, it indicates a better human development.

(g) Population using improved sanitation: ¡f the percentage of population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: 1f the percentage of the population using sustainable access to improved water source is high, it is a good indicator of human development.

(i) People living below poverty line: If less people are living below poverty line, then it is a good indicator of human development.

(j) Percentage of children undernourished: If the number of undernourished children is diminishing, then it is a good indicator of human development.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
What is tabulation? What are the parts of a table? Explain.
Answer:
When data is represented in rows and columns, it is called tabulation. To construct a table, it is important to know the different components of a good statistical table. When all the components are put together systematically, they form a table.

Tabulation can be done using one way. two way or three way classification depending upon the number of characteristics involved.

A good table should have the following parts:
(a) Table number: Table number is given to a table for identification purpose. If more than one table is presented, it is the table number that distinguishes one table from another. It is given at the top or at the beginning of the title of the table.

(b) Title: The title of the table gives about the contents of the table. It has to be very clear, brief and carefully worded, so information interpretations made from the table are clear and free from anv confusion.

(c) Captions: These are the column headings given as designations to explain the figures of the column.

(d) Stubs: These are headings given to row s of the table. The designations of the row-s are also called stubs or stub items and the left column is known as stub column.

(e) Body of the table: It is the main part and it contains the actual data. Location of anyone data in the table is fixed and determined by the row and column of the table.

(f) Headnote/Unit of measurement: The units of measurement of the figures in the table should always be stated along with the title. If figures are large, they should be rounded off and the method of rounding should be indicated.

(g) Source: It is a brief statement or phrase indicating the source of data presented in the table. If more than one source is there, all the sources are to be mentioned.

(h) Note: It is the last part of the table. It explains the specific feature of the data content of the table which is not self-explanatory and has not been explained earlier.

Question 42.
Calculate mode from the following distribution.

Answer:

By seeing the frequency column, we can make out that the class interval 30-40 is considered as the modal group. To find out exact mode the following formula is used.

Question 43.
Calculate the SD of the following frequency distribution of heights of 30 persons by direct method.

Answer:

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Briefly explain the important areas of liberalization.
Answer:
Liberalisation was one of the reforms of the New Economic Policy of 1991. It was introduced to put an end to the restrictions and open up various sectors of the economy.

The following are the important areas of liberalization:
(a) Deregulation of the industrial sector: The liberalization policy removed many restrictions enforced on the industrial sector. Industrial licensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defense equipment, atomic energy generation and railway transport. Many goods produced by the small-scale industries have now been deserved.

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange markets.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from the regulator to facilitator of the financial sector. That means the financial sector may be allowed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfill certain conditions have been given the freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms that are concerned with the government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income.

The rate of corporation tax (tax on income of companies) which was very high earlier has been gradually reduced. A new tax called Goods and Services Tax (GST) has been introduced from 1.7.2017 to bring uniformity in indirect taxes.

In order to encourage better compliance on the part of tax payers, many procedures have been simplified and the rates also substantially lowered.

(d) Foreign exchange reforms: During 1991, the Government took an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange. It also set the tone to free the determination of rupee value in the foreign exchange market from government control. At present, the market forces i.e., demand and supply, determine the exchange rates.

(e) Trade and investment policy reforms: A new trade and investment policy under liberalization strategy was made to increase international competitiveness of industrial production and a foreign investments and technology into the economy. The aim was also to promote the efficiency of the local industries and the adoption of modem technologies.

To protect Indian industries, the government was following quantitative restrictions on imports which encouraged tight control over imports. At the same time, tariffs were very high. These policies reduced efficiency and competitiveness which led to a slower growth of the manufacturing sector.

The main objectives of Trade and Investment Policy were:

• To remove quantitative restrictions on imports
• To reduce quantitative restrictions in exports
• Reducing tariff rates
• Removal of licensing system.

Import licensing was abolished except in case of hazardous and environmentally sensitive industries. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed.

Export duties have been removed to increase the competitive position of Indian goods in the international markets.

A process of disinvestment was also initiated by selling of part of equity shares of public sector enterprises to the public.

Question 45.
Examine the role of education in the economic development of a nation.
Answer:
Education plays a predominant role in economic development of India in the following
ways:
(a) it modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaiourofpcoPlC. It gives inputs like hat is right and what is wrong and contributes for taking sound and valuable judgments.

(b) Promotes science and technology: Educational was provided the knov ledge about latest technology to people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. By providing scope for latest techniques of production. it develops agriculture, industry, transport, power. etc.

(c) Increases mobility of labours: Education helps the labourers to search for more rewarding employment opportunities all over the world. It helps to chooses a suitable career according to one’s educational qualifications. It makes them to move from country to country or state to state as and when required.

(d) Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It provides information about the past events in History and tells about the freedom struggle of great national leaders like Mahatma Gandhi, Bhagath Singh, Subhas Chandra Bose and others. It makes people to develop a sense of patriotism and helps them to adopt strategies of progress in life.

(e) Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. The general education includes Bachelor of Arts. Bachelor of Commerce, Bachelor in Business Administration, etc. at the degree level and technical education includes Bachelor in Engineering in different streams like mechanical, civil, electronic, electrical, computer, etc. All these contribute for the supply of skilled labour for tlie overall development of the country.

(f) Act as source of knowledge: Education is a house of knowledge for all purposes. Any¬thing to know we need to be literate. It helps people to take decisions on the basis of their knowledge gained in different stages while getting education.

(g) Develops moral values: As education provides number of stories and incidents people’s lives, people can definitely develop moral values. These moral values are included in their daily life. Some of the moral values arer not to sell adulterated products, in case of seller and in case of buyer, not to create inconvenience for others in their routine life and so on.

(h) Creates awareness about culture and politics: Education always provides complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. It helps them to preserve historical monuments, inscriptions and other valuable items. It also provides day-to-day information about politics when the person is literate.

Question 46.
What do you mean by organized sector? Discuss the reasons for fall in employment in the organized sector.
Answer:
The organized sector is that sector which includes all the Public Sector Establishments and those Private Sector Establishments which employ 10 or more hired workers. They are called formal sector or organized sector establishments and those who work ¡n such establishments are formal sector workers or organized labour.

The following are the major reasons for the decline in employment opportunities in organized sector:

• Lack of initiative from the government in creating new employment opportunities
• Industrial sickness has made Public Sector Industries to cut down on their vacancies
• The migratory character of the workforce
• The strict labour laws have made Public Sector Enterprises to go for formalisation of labour which has resulted in a decline in emp1oymnt opportunities
• Privatization and Disinvestment have made decrease in jobs in the public sector.
• Amalgamation amid merger among large scale industries have led to decrease in employment opportunities

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Record the daily expenditure, the quantity bought and prices paid per unit of the daily purchases, such as rice, toor dal, tomato, onion and milk of your family for two weeks.
How has the price change affected your family?
Answer:
The following table shows the list of items with quantities purchased by a family:

No need to calculate CPI by calculating price relatie with the help of formulae.

Calculation of Living Index or Consumer Price Index is calculated as follows:
CPI = \(\frac{\Sigma \mathrm{WP}}{\Sigma \mathrm{W}}=\frac{1600}{15}\) = 106.66
CPI = 106.66
Comment: It shows that there is an increase in price by 6.66°c. which has a little effect on standard of 1iing,

Question 48.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Answer:
Poverty has become a major challenge in rural economy of India. As a resident of a village I can suggest the following measures to tackle the problem of poverty:

• Providing free and compulsory education to each and every individual in rural areas
• Supplying agricultural inputs like seeds, chemical fertilizers, etc. to farmers at subsidized rates
• Removal of all defects of agricultural marketing
• Creating self-employment opportunities
• Provision of transport and communication facilities to rural areas
• Arranging banking facilities so that the fanners get sufficient crop loans at low rate of interest ‘
• Encouraging agriculture allied activities like poultry farming, dairy farming, beekeeping, sericulture, horticulture, etc.
• Encouraging change in crop pattern, mixed farming, and adopting scientific methods to grow crops
• Provision of free health care facilities
• Continuous supply of electricity to all pump sets at free of cost
• Supply of essential commodities to landless labourers, small and marginal farmers
• The government should provide all necessary infrastructural facilities for the overall development of rural economy.

Question 49.
Prepare a list of causes of land degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing mainly due to the factors mentioned below:
(a) Deforestation, ie, reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over-exploitation of forest products such as fuelwood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in India are not properly planned and managed.
(h) Overexploitation of groundwater for various competing utilities like human settlement, industrialization, etc.
(1) No proper introduction of crop rotation techniques and organic farming.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

The land is indispensable for human settlement. If proper care is not taken for the conservation of land and water, there shall be a severe scarcity of water and natural resources in the future which may lead to conflict among the countries.

Students can Download 1st PUC Economics Model Question Paper 6 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 6 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Frequency polygon is used in the presentation of
(a) Ungrouped data
(b) Both types of data
(c) Grouped data
(d) None of these
Answer:
(c) Grouped data

Question 2.
Bibliography indicates
(a) Primary sources
(b) Oral resources
(c) Secondary sources
(d) T.V.News
Answer:
(c) Secondary sources

Question 3.
In India, census is carried out once in
(a) 5 years
(b) 10 years
(c) 2 years
(d) 20 years
Answer:
(b) 10 years

Question 4.
It is an agricultural allied activity
(a) Poultry
(b) Cottage industry
(c) Tourism
(d) Small industry
Answer:
(a) Poultry

Question 5.
GNP stands for
(a) Gross national price
(b) Good network product
(c) Gross national product
(d) None of these.
Answer:
(c) Gross national product

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Resources are limited but wants are _____________
Answer:
unlimited

Question 7.
Arithmetic line graph is also called as___________
Answer:
Time series graph

Question 8.
_______ transport is considered as the most important contribution of British rule
Answer:
Railways

Question 9.
Economic reforms were introduced in India in the year____________
Answer:
1991

Question 10.
________ state has achieved excellence in information technology
Answer:
Karnataka

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A	B
1. Pilot survey	(a) Fruit production
2. Consumer price index	(b) Institutional finance
3. Golden revolution	(C) Petroleum
4. NABARD	(d) Cost of living index
5. Nonrenewable resource	(e)Pretesting questionnaire.

Answer:
1-c
2-d.
3-a.
4-b.
5-c.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is economics according to Alfred Marshall?
Answer:
According to Alfred Marshall. ”Economics is the study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being”

Question 13.
Why did the colonial government ban canal transport?
Answer:
The colonial government banned canal transport as the measures taken for development of inland trade and sea lanes were far from satisfactory. The inland w aterw ays proved uneconomical and failed to compete with railways.

Question 14.
Expand IBRD.
Answer:
International Bank for Reconstruction and Development.

Question 15.
What is infrastructure?
Answer:
Infrastructure is a network of physical facilities and public services which act as important base for economic and social development of the country.

Question 16.
Expand NCERT.
Answer:
National Council of Educational Research and Training.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Give the meaning of pilot survey.
Answer:
Once a questionnaire is ready, it is advisable to conduct a try out with a small group which is known as pilot survey or pretesting of the questionnaire. It gives a preliminary idea about the survey. It helps in pretesting of the questionnaire, so as to know1 the shortcomings and drawbacks of the questions.

Question 18.
Give the formula to find out mid point.
Answer:
The formula to find out midpoint is as follows:
Mid point = \(\frac{\text { Upper class limit + Lower class limit }}{2}\)

Question 19.
Write the meaning of temporal classification with an example.
Answer:
Temporal classification is one in which the classification of data is done on the basis of time. Example hours, days, weeks, months, years, decades, etc.

Question 20.
Calculate the value of the mean from the following figures
X: 50, 70, 90, 120, 110, 80, 70, 150, 250.
Answer:
X̄ = \(\frac{\Sigma X}{N}=\frac{990}{9}\) = 110

Question 21.
Which quartiles are used to calculate the interquartile range? Give the formula of it.
Answer:
The upper and lower quartiles are used to calculate the interquartile range.
It is calculated by using the formula Interquartile range = Q₃ – Q₁

Question 22.
Write any four features of index numbers.
Answer:
The four features of index numbers are as follows:

• Index numbers are specialized averages
• Index numbers are expressed in percentages
• Index numbers measure the effect of changes in relation to time or place.
• Index numbers measure the changes that are not capable of direct measurement.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
Name the modern industries which were in operation in our country at the time of Independence.
Answer:
The modem industries which were in operation in our country at the time of independence were Tata Iron and Steel Company, cotton textile industry, jute industry, sugar industry, cement industry, paper industry, etc.

Question 24.
What do you mean by the green revolution? How was it possible?
Answer:
Green revolution refers to the large increase in the production of food grains resulting from the use of high yielding variety seeds, particularly for wheat and rice.

We could achieve green revolution with high yielding variety of seeds, irrigation facilities and financial resources to purchase fertilizer and pesticides. So the benefits of the green revolution were restricted to only a few states like Punjab, Andhra Pradesh and Tamil Nadu.

Question 25.
What are the various forms of health expenditure?
Answer:
The various forms of health expenditures are as follows:

• Preventive medicine (vaccination)
• Curative medicine (medical intervention during illness)
• Social medicine (spread of health awareness)
• Provision of clean drinking water and good sanitation.

Question 26.
What is the role of self help groups in providing rural credit?
Answer:
The major role of self-help groups is to encourage small savings from each member and the pooled money is given as loans and advances to the needed member at a very low rate of interest and also at easy repayment installments.

Question 27.
Who are all included in labor force?
Answer:
All those who are engaged in economic activities, in whatever capacity high or low are called workers. Even if some of them temporarily abstain from work due to illness, injury or othei physical disability, bad weather, festivals, social or religious functions are also workers. Apart from these, the labour force also consists of those who help the main workers and self-employed workers.

Question 28.
Write the meaning of global burden of diseases.
Answer:
The global burden of diseases is an indicator used by experts to guage the number people dying prematurely because of a particular disease and the number of years spent by the people in a state of disability owing to that disease, during a given period of time.

In India, more than half of global burden of disease is accounted for by communicable diseases like diarrhea, malaria and tuberculosis. Even year around five lakh children die of waterborne diseases.

Question 29.
Write any two threats to the environment in our country.
Answer:
The major threats of the environment in India are as follows:

• Threat of poverty induced environmental degradation
• The threat of pollution from rapidly growing industrial sector, air pollution, water contamination, soil erosion, deforestation, and wildlife extinction.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
How will you choose the wants to be satisfied?
Answer:
It is a well-known fact that human wants are unlimited and resources to satisfy them are limited. Though human wants are unlimited these wants vary in intensity and urgency. Some wants are more intense and urgent than other wants. We give top priority to more intense and urgent wants.

For instance, a family may want to go on a tour to America and also want to have a flat, We expect that the family opts for buying the flat first and choose to go to America later.

Hence, a consumer always selects that combination of products that give him maximum satisfaction. Similarly, a producer may take the best combination of two inputs so that it requires less cost of production and get maximum profit.

So. we have to choose thoše wants to be satisfied first which requires immediate attention. This is what we learn from the study of economics.

Question 31.
Does the lottery method always give you a random sample? Explain.
Answer:
It ¡s a well-settled fact that the lofler method always gives us a random sample. Random sampling is the one where the individual units from the population (samples) are selected at random.

For instance, the government wants to determine the impact of the price rise in LPG on the household budget of a particular locality. For this. a representative sample of 20 households has to be taken and studied. The names of the 200 households of that area are written on pieces of paper and mixed eI1. then 20 names to be interviewed arc selected one bone.

In random sampling, ever an individual has an equal chance of being selected and the individuals who are selected are just like the ones who are not selected. In the above example. all the 200 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample, sO drawn, is a random sample. So. the lottery method always gives us random samples.

However, the lottery method will not give a random sample in the following cases:

• If the slips are not made of identical size and it is possible to identify the names or numbers on the slips.
• If same name or number is written on more than one slip or if some name or number is missed out.

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Answer:


Comment: There is no linear relation between X and Y.

Question 33.
Write a note on SENSEX.
Answer:
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the Sensex is with reference to this period. It is the benchmark index for the Indian stock market, It consists of3O stocks which represent 13 sectors of the economy and the companies listed arc leaders in their respective industries. 1f the Sensex rises, it indicates that the market is doing cll and investors expect better earnings from companies. It also indicates growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is idely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Question 34.
The yield of wheat per acre for ten districts of a state is as under

Calculate mean deviation from mean
Answer:
Calculation of mean deviation mean:

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
Answer:
The most important feature of indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. it resulted in a disadvantage to the country is economy.

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian eaith.

Question 36.
Write a note on WTO.
Answer:
The World Trade Organisation was founded in 1995 as the successor organization to the General
Agreement on Trade and Tariff which was established in 1948

The main objectives of WTO are as follows:

• To establish a rule-based trading system in which nations cannot place arbitrary restrictions
  on trade
• To enlarge production and trade of services
• To ensure optimum utilization of world resources
• To protect the environment.

The various WTO agreements cover trade in goods and services to facilitate international trade i.e. both bilateral and multilateral, through the removal of tariff and non-tariff barriers and providing greater market access to all the member countries.

India. being a founder member, ha been in the mainframe in framing fair global rules, regulations, and safeguards and advocating the interests of the developing world. India has kept its commitments towards liberalization of trade, made in the VTO, by removing quantitative restrictions on imports and reducing tariff rates.

But, some economists argue that the usefulness of WTO to India is not much when compared to developed countries. The major portions of benefits are enjoyed by the rich countries. They also say that while developed countries file complaints about agricultural subsidies given in their countries, developing countries feel cheated as they are forced to open up their markets for developed countries but are not allowed to access the markets of developed countries, which is totally unfair to Indian producers.

Question 37.
What do you mean by a growth-oriented approach to poverty reduction? Why it is not successful in India?
Answer:
The growth-oriented approach is based on the expectation that the effects of economic growth i.e. the rapid increase in gross domestic product and per Capita Income, would spread to all sections of the society and vi1l trickle down to the poor sections also.

The growth-oriented approach to reduce poverty was not successful in India because of the following reasons:
(a) It was felt that the rapid industrialization and green revolution would benefit the underdeveloped regions and the more backward sections of the community. But, the overall growth and growth of agriculture and industry have not been impressive.
(b) Population growth has resulted in a very low growth in per capita incomes.
(c) The gap between poor and rich has actually widened.
(d) The green revolution increased the disparities regionally and that between large and small farmers.
(e) There was unwillingness and inability to redistribute land.
(f) Economists say that the benefits of economic growth have not trickled down to the poor.

Question 38.
Write a short note on alternative markets.
Answer:
The examples for emerging alternate marketing channels are as follows:

• Farmers directly sell their agricultural produce to consumers. Example: Apni Mandi in Punjab, Haryana. and Rajasthan, Rvthu Bazars (vegetables and fruits markets) in Andhra Pradesh. Uzhavar Sandhai – (a farmers market) in TamilNadu.
• Agricultural contracts several domestic and multinational companies entering agreements with Indian farmers in which farmers are encouraged to grow farm products (vegetables and fruits) of desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at predecided prices.

The main benefits of alternative agricultural marketing channels arc:

• The fanners get seeds and other agricultural inputs
• Farmers are assured of procurement of agricultural products at predecided prices
• Help in reducing price risk of farmers
• Expansion of markets for farm products in India and abroad.

Question 39.
Discuss the two types of rural unemployment.
Answer:
The following are the two types of rural employment.
(a) Disguised unemployment: It is that type of unemployment where we can come across excess number of workers engaged in some work, but actually less number of workers are required. For instance, suppose a farmer has four acres of land and he actually needs only two workers and half to carry out various operations on his farm in a year. but if he employs five workers and his family members such as his wife and children, this situation is called disguised unemployment.

(b) Seasonal unemployment: ¡t is that unemployment where the rural people get employment only during a particular season. We havè noticed that many people migrate to urban areas, pick up a job and stay there for some time, but come back to their home villages as soon as the rainy season begins. This is because work in agriculture is seasonal; there are no many employment opportunities in the village for all the months in a year. When there ¡s no work to do on farms, people go to urban areas and look for temporary jobs. This is one of the instances of seasonal unemployment.

Question 40.
Write a short note on power in India.
Answer:
Energy is one of the basic infrastructures which is very essential for the economic development of a country. It is indispensable for industries, used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides, and farm equipment. It is required in houses for cooking, household lighting, and heating. The sources of energy can be classified as follows.

(a) Commercial sources of energy and Non-commercial sources of energy:
The commercial sources of energy arc the energy sources which arc bought and sold. Examples, coal, petroleum and electricity.

Non-commercial sources of energy are the sources that arc freely available in nature or forest. Example. firewood. agricultural waste and dried dung.

(b) Conventional and non-conventional energy sources:
The conventional sources of energy are the traditional sources of energy used for a long period of time. They consist of coal, petroleum. electricity. firewood. agricultural waste, etc.

The non-conventional sources of energy are modern sources of energy which include solar energy, wind energy and tidal power. Being a tropical country. India has almost unlimited potential for producing these types of energy. if suitable cost-effective techniques are adopted.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw a table and mark its parts.
Answer:

Question 42.
Calculate Q₁, Q₂, and Q₃ from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32.
Answer:

Calculation of Q₁:
Q₁ = Size of \(\left(\frac{\mathrm{N}+1}{2}\right)^{th}\) item
Q₁ = Size of \(\left(\frac{10+1}{4}\right)^{th}\) item
Q₁ = Size of \(\left(\frac{11}{4}\right)^{\mathrm{th}}\) item
Q₁ = Size of 2.75th item
= 2nd item + 0.75 (3rd item – 2nd item)
= 12 + 0.75 (14 – 12)
= 12 + 0.75 (2)
= 12 + 1.5
Q₁ = 13.5

Calculation of Q₃:
Q₃ = Size of \(\frac{3(\mathrm{~N}+1)}{4}\) item
Q₃ = Size of \(\frac{3(10+1)}{4}\) item
Q₃ = Size of \(\left(\frac{3(11)}{4}\right)^{\mathbb{th}}\) item
Q₃ = Size of \(\left(\frac{33}{4}\right)^{th}\) item
Q₃ = Size of 825th item
Q₃ = 8th item + 0.25 (9th item – 8th item)
Q₃ = 32 + 0.25 (35 – 32)
= 32 + 0.25 (3) = 32 + 0.75
Q₃ = 32.751

Question 43.
The yield of Rice per acre for ten districts of a state are as under

Calculate standard deviation and coefficient of variation.
Answer:

CV = \(\frac{\sigma}{\bar{X}}\) × 100 = \(\frac{7.16}{19.5}\) × 100 = 36.717

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the status of India’s agriculture during British rule.
Answer:
Indian Economy under British rule remained agrarian. About 85% of the countrys population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. But, the agricultural sector continued to experience stagnation.

The agricultural productivity was very low though the area of cultivation expanded. The main reason was the land settlement system introduced by the colonial government. Under the zamindari system which was implemented in the then Bengal presidency comprising parts of India’s present-day eastern states. the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. A considerable number of zamindars and colonial governments did not improve the condition of agriculture. The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.

The terms of revenue settlement with zamindars made the zamindars to be strict in collecting land revenue from the actual cultivators even at the time of drought. This as mainly because. the zamindars were given dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.

Apart from these. low levels of technology. The lack of irrigation facilities and negligible use of fertilizers were also equally responsible for bad status of agriculture during British rule.

Question 45.
Briefly explain the important areas of Liberalisation.
Answer:
Liberalization was one of the reforms of New Economic Policy of 1991, It was introduced to put an end to the restrictions and open up various sectors of the economy. The following are the important areas of liberalization:

(a) Deregulation of industrial sector: The liberalization policy removed man restrictions enforced on industnal sector. Industrial’Iicensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defence equipment, atomic energy generation and railway transport. Many goods produced by the small scale industries have now been deserved,

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates. nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on man matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. The foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given the freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds arc now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms that are concerned with the government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income.

Question 46.
Explain the causes of poverty.
Answer:
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment, unemployment, and underemployment. A large section of urban and rural poor are unable to get proper income generating employment opportunities The industrialization has failed to absorb the unemployed youths in India. Casual laborers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Inflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is ide gap between the rich and the poor. where the poor are unable to get opportunities to come Out of poverty line.

(d) Negative impact of British rule Indian economy: During the British Nile there was deindustrialization. The import of cotton textiles displaced many Lndian producers. More than 70% of Indians were engaged in agriculture throughout British period. As the British made India a market for their finished products. Indian merchants incurred huge losses due to their inability to compete with the low priced products of Britain imported to India. Our natural resources were overexploited by the British and foodgrains were exported. Many Indians died due to famine and hunger. So, this had continued even after independence.

(e) Unequal distribution of income and wealth: There is a large scale unequal distribution of income and wealth in India. The wealth is concentrated in the hands of a few individuals. Though the Government had tried to redistribute land among the landless agricultural labourers to reduce the magnitude of poverty, it was successful only to a limited extent as large sections of agricultural workers were not able to cultivate small land holds duc to shortage of money or lack of skills to make the Land productive and the land holdings were too small.

(f) Lack of skills and knowledge: Most of the people who belong to backward communities are not able to participate in the emerging employment opportunities in different sectors of urban and rural economy due to their ignorance and illiteracy. Many of the schedule caste and schedule tribe people do not have necessary knowledge and skills in this regard.

(g) Excess population: The access population in India is also one of the causes for poverty. The supply of labourers is more than demand for labour. The employment generation is than the growth rate of population in India. The government is struggling hard to provide basic amenities due to rapid growth of population in India.

(h) Other causes for poverty are:

• Social and political inequality
• Social exclusion
• Indebtedness (excessive borrowings of loans)
• Low capital formation
• Lack of infrastructure
• Lack of effective demand
• Inefficient and corrupt administration.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Suppose you are a research student and you are asked to conduct a sample survey about the mid-day meals program in schools. Prepare a good questionnaire to support your survey.

Questions	Responses (Tick the appropriate one)
1. Your name
2. Your age
3. Gender	Male/Female
4. School:
5. How many members in your family are working?
6. Monthly family income
7. Resident of	Urban/Rural
8. Where do you eat lunch every day?	a) House b) Hotel c) School d) Other
9. Do you like eating at schools?	Yes /No
10. How often, like the food served at ‘ your school:	(a) every day (b) Once in 4 days (c) Once in 2 days (d) None
11. Do you get tasty food?	Yes/No
12. What made s ou to choose school food?	(a) Tasty (b) Free of cost (c) Good quality (d) None
13. Are you satisfied with the taste?	Yes/No
14. Is the supply of food helpful?	Yes /No
15. Do you examine quality of food?	Yes/No
16. Quality of rice used	(a) Good (b) Excellent (c) Better (d) Loss-quality
17. Are vegetables used in every days food?	Yes /No
18. Do you expect more food?	Yes /No
19. The quality of vegetables, pulses used are	(a) Good (b) Excellent (c) Very good (d) None
20. Are you coming to have lunch in school?	Yes/No
21. Do you think there should be an improvement in mid-day meals program	Yes/No

Question 48.
Suppose you are a resident of a village, suggest a few measures it tackle the problem of poverty.
Answer:
If support in implementing the fo11oving programs successfully. we can easily eradicate poverty:

• Swarnajayanti Gram Swarozgar Yojana (SGSY)
• Swarnajayanthi Shahari Rozgar Yojana (SJSRY)
• Pradhana Manthri RozgarYojana (PMRY)
• National Food for Work Programme (NFWP)
• Sampooma Gramecn Rozgar Yoj ana ( SGRY)
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP)
• Public Distribution System (PDS)
• Integrated Child Development Scheme (ICDS)
• Mid-day Meals Scheme
• Pradhana Manthri Gram Sadak Yojana
• Indira Awas Yolana
• Vaimiki Ambedkar Awas Yoj ana.

Question 49.
Name any ten power generating units in India.
Answer:

• Sharavathi Hydro Power Station
• Kalindi Project
• Shivanasainudrarn Hydro Power Station
• Bhakra-Nangal Hydel Power Project
• Kosi project
• Raichur Thermal Power Station
• Kaiga Atomic Power Station
• Ranaprathapsagar Power Station
• Tarapur Power Sstation
• Kalapakkam Power Station
• Tungabhadra Hyde! Power Station.

Students can Download 1st PUC Economics Model Question Paper 5 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 5 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Which of the following represent median?
(a) Q1
(b) Q4
(c)Q3
(d)Q2
Answer:
(d) Q2

Question 2.
Ogives can be helpful ¡n locating graphically the
(a) Mode
(b) Median
(c) Mean
(d) None of these
Answer:
(b) Median

Question 3.
Railway transport introduced in India in the year
(a) 1835
(b) 1776
(c) 1853
(d) 1850
Answer:
(d) 1850

Question 4.
It is an agricultural allied activity.
(a) Poultry
(b) Cottage industry
(e) Tourism
(d) Small industry
Answer:
(a) Poultry

Question 5.
The state in India popularly known as bGodis Own Country”.
(a) Kerala
(b) Goa
(c) Andhra Pradesh
(d) Kamataka
Answer:
(a) Kerala

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Data collected by the investigator is called _____________
Answer:
enumerator

Question 7.
Inflation affects the_________ of common people.
Answer:
cost of living

Question 8.
WTO was established in the year____________.
Answer:
1995

Question 9.
Investment on education is considered as one of the main sources of __________.
Answer:
human capital

Question 10.
_____________ are renewable resource.
Answer:
Trees and fish

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A	B
1. Prime Minister	(a) Air pollution
2. Median	(b) Milk production
3. Census	(c) Chairman of NITI Ayog
4. White revolution	(d) Covers every individual
5. Industrialisation	(e) Positional value

Answer:
1-c,
2-e
3-d
4-b
5-a

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
How do range and quartile deviation measure the dispersion?
Answer:
Range and quartile deviation measure the dispersion by calculating the spread within which the values lie.

Question 13.
Mention the last step in developing a project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
Expand GDP.
Answer:
Gross domestic product.

Question 15.
What is agricultural marketing?
Answer:
It refers to the process of assembling, storing, processing, grading, packing and distributing the agricultural products throughout the country.

Question 16.
What type of economic system is followed in India?
Answer:
Mixed economic system is being followed in India.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Write the differences between census and sample survey.
Answer:

Census	Sample Survey
It includes every element of the population	Here a representative sample is taken for survey
There may not be accurate information	Provide reasonably reliable and accurate information
It is expensive	It is cheap and cost effective
It is time consuming	It takes less time

Question 18.
Mention the types of classification of data.
Answer:
The types of classification of data are:
(a) Quantitative classification
(b) Qualitative classification
(c) Chronological classification
(d) Spatial classification.

Question 19.
Whether the data represented by a component bar diagram can also be represented by a pie chart? Explain.
Answer:
A pie diagram is also a component diagram, but unlike a bar diagram, here it is a circle whose area is proportionally divided among the components it represents. So the data represented by a component bar diagram can also be represented by a pie chart. The only requirement being that absolute values of the components have to converted into percentages before can be used for a pie diagram.

Question 20.
Calculate the value of the mean from the following figures
X: 5, 7, 9, 12, 11, 8, 7, 15, 25.
Answer:
x = \(\frac{\Sigma X}{N}=\frac{99}{9}\) = 11

Question 21.
Interpret the values of ‘r’ as 1, -1 and 0.
Answer:
When r = 1, it shows there is perfect positive correlation between two variables
When r = 1, it shows that there is perfect negative correlation between two variables When r = 0, it shows that there is no relationship between the two variables.

Question 22.
Mention the name of any four statistical tools.
Answer:
The most important statistical tools are the measures of central tendency, dispersion, correlation, bar diagrams, pie chart, histograms, etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before Independence.
Answer:
The important export goods of India before independence were raw silk, cotton, wool, sugar, indigo, jute, etc.

Question 24.
What are the social factors that trigger and perpetuate poverty?
Answer:
The social factors that trigger and perpetuate poverty are as follows:

• Illiteracy
• 111 health
• Lack of access to resources
• Discrimination or lack of civil and political freedoms.

Question 25.
What factors contribute to human capital formation?
Answer:
The factors which contribute to human capital formation are as follows:

• Expenditure on education
• Expenditure on health
• Expenditure on training
• Expenditure on information
• Migration.

Question 26.
How moneylenders exploited the rural farmers?
Answer:
Moneylenders and traders exploited small and marginal farmers and landless labourers by:

• Charging very high rate of interest
• Manipulating the accounts to keep them in debt trap
• Trespassing the agricultural land by misusing their illiteracy
• Making debtors into bonded labourers.

Question 27.
Name any four kinds of unemployment.
Answer:
The four kinds of unemployment are as follows:

• Open unemployment
• Disguised unemployment
• Seasonal unemployment
• Technical unemployment
• Frictional unemployment.

Question 28.
How infrastructure facilities have been classified?
Answer:

• Infrastructural facilities are classified into two categories viz., economic infrastructure and social infrastructure.
• The economic infrastructural facilities are associated with energy, transportation, communica-tion, banking, insurance, etc. which directly contribute towards economic development.
• The social infrastructural facilities are associated with education, health, housing, sanitation, drinking water, which indirectly contribute for economic development.

Question 29.
List out any four biotic factors of environment.
Answer:
The biotic factors of environment are:

• Birds
• Animals
• Plants
• Forests.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
‘Scarcity is the root of all economic problems’. Explain the statement.
Answer:
It is true that the scarcity is the root of all economic problems. If there had been no scarcity there would have been no economic problem. This would have not necessitated the study of economics.

In our daily life. we face various forms of scarcity. The queues at the railway booking counters. overcrowded buscs, heavy traffic on roads, the rush to get a ticket to watch a movie of a popular film actor or actress. arc all the manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.

Further, the resources which the producers have are limited and also have alternative uses.
For instance, take the case of food that we eat everyday. It satisfies our want of nourishment. Farmers employed in agriculture grow crops that produce our food. At any point of time. the resources in agriculture like land. labour, water, chemical fertilizers, etc. all these resources have alternative uses. The same resources can be used in the production of non-food crops. Thus, alternative uses of resources give rise to the problem of choice between different commodities that can be produced b those resources.

Question 31.
Briefly explain the sampling errors.
Answer:
Random sampling is where the individual units from the population (samples) are selected at random. For instance, the government wants to determine the impact of the rise in petrol price on the household budget of particular locality. For this. a representative (random) sample of 30 household has to be taken and studied. The naines of all the 300 households of that area are written on pieces of paper and mixed well, then 30 names to be interviewed are selected one be one.

In the random sampling. ever indi idLial lias an equal chance of being selected and the individuals who are selected are just like the ones ho are not selected. In the aboe example. all the 300 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample. such drawn, is a random sample. This is also called lottery method, The same could be done using a random number table also

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Answer:

There is a perfect positive corelation betveen the values of X and Y.

Question 33.
Explain the features of index number.
Answer:
The following are the characteristics or features of index numbers:
(a) Index numbers are specialized averages: These are ahavs considered as specialized averages. An average is a single figure representing a group of figures. To obtain an average. the items must be comparable. Index numbers are also one type of averages which show in a single figure. the change in two or more series of different items that can be expressed in different units

(b) Index numbers measure the net change in a group of related variables: As index numbers are also averages. the describe in one single numerical value i.e. increase or decrease in a group of related variables under study. The group of variables may be prices of set of commodities. the volume of production in different sectors. etc.

(c) Index numbers measure the effect of changes over a period of time: Index numbers are most mostly widely used for measuring changes over a period of time. For example. we can compare the agricultural production, industrial production, imports, exports. wages. etc. during two different periods.

(d) Index numbers are expressed in percentages: The changes in magnitude are expressed in terms of percentages which are independent of the units of measurement. This facilitates the comparison of two or more index numbers in different situations.

(e) Index numbers measure and permit comparison of the prices of certain goods: Quantity index numbers measure the changes in the phsical volume of production, construction or employment.

Question 34.
The yield of Rice per acre for ten districts of a state are as under

Calculate mean deviation from mean
Answer:

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
Answer:
The most important feature of Indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. It resulted in a disadvantage to the country canon

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian ea1th.

Question 36.
Growth with equity is one of the objectives of planning. Justify.
Answer:
Growth with equity is one of the objecties of planning. A country can have high economic growth. the most modern technology deeloped with in the country itself and still have most of its people living in poverty. It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and self-reliance, equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced,

Question 37.
Briefly explain the background of economic reforms in India.
Answer:
There was a financial crisis which persisted since 1980. Wc know that to introduce various policies, the government has to generate funds from various sources like taxation, running public sector enterprises etc. When the expenditure is more than the income, the government takes loans to balance the deficit from banks and also from people within the country and from international banks,

The various development policies require huge finance. But there was scarcity of funds. Even though the revenues were very low, the government had to overshoot its revenue to meet the challenges like unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue. At the same time, the government could not generate funds internally. When the government was spending a large share of its income on areas which do not provide immediate returns, there was a need to use the rest of its revenue in a highly efficient manner, The incomc from public sector undertakings was also not very high to meet the growing expenditure.

Further, the foreign exchange. borrowed from other countries and international banks was spent on meeting consumption needs, No sincere efforts were made to reduce expenditure and to increase our exports.

During late 1980’s government expenditure exceeded its income. Prices of many essential goods increased. Imports grew at a very large extent. Foreign exchange reserves declined considerably and the same fall short to finance our imports for more than two weeks, There was shortage of funds even to pay interest to international lenders and at the same time no country or international bank was ready to lend any more to India.

At this situation. India approached the International Bank for Reconstruction and Development and International Monetary Fund and reccvcd seven billion dollars as loan to manage the crisis.

To avail loans, these international banks expected India to liberalise and open up its economy by removing restrictions on the private sector, reduce the role of go’ernnient in many areas and remove trade restrictions between India and other countries.

India had to agree to these conditions of IBRD and IMF and announced the new economic policy which included liberalization, privatization and globalization.

Question 38.
Explain the drawbacks of agricultural market.
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation. packaging, grading and distr4bution of different agricultural commodities across the countr. The major drawbacks of agriculture marketing in India are as follows:

• Long chain of middlemen taking awa the profit of farmers
• No proper storage facilities to protect the agricultural products
• Faulty methods of weighing/measuring agricultural crops
• Manipulation of accounts
• Farmers are forced to sell their products at low prices due to lack of information.

Question 39.
Briefly explain the state of infrastructure in rural India.
Answer:
Majority of people in India live in rural areas, In spito of so much of technological progress in the world, rural women are still using bio-fuels like agricultural waste, dried dung and fire wood to meet their eneigv requirement. Thc’ have to walk long distances to bring fuel, water and other basic needs.

According to the latest estimates. in rural India only 56% of households have electricity connection and 43% still use kerosene. About 90% of the rural households use bio- fuels for cooking. Tap water availability is limited to only 24 % rural households. About 76 % of the population drinks water from open sources like wells. tanks. ponds, lakes, rivers, canals etc. Access to improved sanitation in rural areas only 20 %.

Question 40.
Write a note on the Great Leap Forward campaign of China.
Answer:
The Great Leap Forward’was initiated in 1958 by the Communist Party of Peoples’ Republic of China. After the establishment of people’s Republic of China under one party rule, all the critical sectors of the economy, enterprises, and lands owned and operated by the individuals were brought under government control.

The Great Leap Forward campaign aimed at industrializing the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under commune system, people collectively cultivated lands. ¡n 1958, there were 26,000 communes covering almost all the farm population.

The Great Leap Forward campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialization process.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw an arithmetic line graph using following data.
Value of import and export of India (in 100 crores).
Answer:

Question 42.
Calculate Q1, Q2, and Q3 from the following data
15, 21, 26, 30, 40, 45, 50, 54, 60, 65, 70.
Answer:

Question 43.
The yield of wheat per acre for ten districts of a state are as under

Calculate Standard deviation and coefficient of variation.
Answer:
Standard Deviation (actual mean method)

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the goals of five-year plans.
Answer:
The main goals ofthc five ‘ear plans are Growth, modernization, self-reliance and equity. They can be illustrated as follows:
(a) Growth: It refers to the increase in the gross domestic product. It also implies that the increase in the country’s capacity to produce the output of goods and services within the country. It includes larger stock of productive capital or a larger size of supporting services like transport and banking or an increase in the efficiency of productive capital land services.

A good indicator of economic growth, in the language of economics, is a steady increase in the gross domestic product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy. namely agricultural sector, the industrial sector and the service sector.

(b) Modernization: Adoption of new technology is called as modernization. To increase the production of goods and services producers have to adopt new technologies. For example, a farmer can increase the output on his farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new types of machinenes.

Modernisation does not refer only to the use of new technology but also to changes in
social outlook such as the recognition that women should have the same rights as men.
In a traditional society, women are supposed to remain at home while men work.

(c) Self-reliance: The first seven five year plans gave importance to self reliance. Self reliance refers to avoiding imports of those goods which could be produced in India itself. This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is a well-known fact that, people who were recently freed from foreign domination should give importance to selfrcliance.

(d) Equity: Growth withequity is one of the objectives of planning. A country can have high economic growth, the most modern technology developed with in the country itself but still have most of its people living in poverty It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and selfreliance. equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced.

Question 45.
Explain the causes of poverty.
Answer:
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment. unemployment and underemployment. A large section of urban and rural poor are unable to get proper income-generating employment opportunities. Industrialization has failed to absorb the unemployed youths in India. Casual labourers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Lnflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is wide gap between the rich and the poor, where the poor are unable to get opportunities to come out of poverty line.

Question 46.
List out the benefits of organic farming.
Answer:
Organic farming is that fanning which relies on crop rotation, green manure, compost and biological pest for growing crops. It is a whole system of farming that restores, maintains and enhances the ecological balance.

The main benefits of organic farming are as follows:

• It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides) with cheaper ones
• It generates income through exports
• It contributes to ecological balance
• Provide healthy and chemicals free food
• Organic farming contributes to higher production and productivity
• It enhances the quality and quantity of agricultural products
• Provide alternative employment opportunities to rural people
• Helps in the prevention of deterioration infertility and the conservation of soil.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
On the basis of data you have collected regarding participation of women in your locality in the below mentioned categories construct a pie chart.
(a) Self-employed
(b) Regular salaried employees
(c) Casual wage labourers. .
Answer:
As per the data collected regarding participation ofomcn in our 1oca1it. the following table is generated

Categories	Participation
Self-employed	50
Regular salaried	20
Casual labourers	30

Question 48.
Give appropriate examples for the following.

Name of the product	Name of foreign company
Biscuit
Shoes
Computers
Cars

Answer:

Name of the product	Name of foreign company
Biscuit	Hide and Seek
Shoes	Nike/Liberty
Computers	Dell
Cars	Toyoto

The above-mentioned companies have come to India after 1991 new economic policy.

Question 49.
Identify the formal and informal workers in the following list.
(a) Petty shop owner
(b) Handloorn weaver
(C) SBI cashier
(d) A street vendor
(e) Government hospital nurse
(f) Government primary school teacher
(g) Tailor
(h) Revenue inspector
(I) Police
(j) Agricultural labourers
Answer:
(a) Petty shop owner – informal worker
(b) Hand loom weaver – informal worker
(c) SBI cashier – formal worker
(d) A Street vendor – infonnal worker
(e) Government hospital nurse – formal worker
(f) Government primary school teacher – formal worker
(g) Tailor – informal worker
(h) Revenue inspector – formal worker
(I) Police – formal worker
(j) Agricultural laborers – informal workers.

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2018 (South), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Time: 3.15 Hours
Max Marks: 100

Instructions to candidates:

1. Write the serial number of questions properly as given in the question paper while answering
2. Write the correct and complete answers.

Section – A

I. Answer any ten of following questions in a word or a sentence each. While answering Multiple Choice Questions, write the serial number/alphabet of the correct choice and write the answer corresponding to it. Each question carries one mark: ( 10 × 1 = 10 )

Question 1.
Give an example for Extractive Industry.
Answer:
Agriculture, mining, fishing, forestry, hunting, fruit gathering, etc. are examples of extractive industries.

Question 2.
Kartha is a Joint Hindu Family business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Answer:
(b) Unlimited liability

Question 3.
Name the two sectors working in the Indian Economy.
Answer:
The two sectors working in the Indian economy are:
(a) Public sector
(b) Private sector.

Question 4.
State any one type of Bank account.
Answer:
Current account.

Question 5.
What is e-Business?
Answer:
E-commerce is conducting the activities of industry, trade, and commerce using computer networks, i.e. internet.

Question 6.
Carbon Monoxide emitted by automobiles directly contributes to
(a) Water pollution
(b) Noise pollution
(c) Land pollution
(d) Air pollution
Answer:
(d) Air pollution

Question 7.
How many members have to sign a Memorandum of Association in the case of a public company.
Answer:
7 members have to sign a memorandum of association in case of a public company.

Question 8.
ADRs are issued in
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

Question 9.
Expand: WTO
Answer:
World Trade Organisation.

Question 10.
Which of the following is not a fixed shop large retailer?
(a) General Stores
(b) Chain Stores
(c) Mail-Order Houses
(d) Super Markets
Answer:
(a) General Stores

Question 11.
Name any one mode of entering into international business.
Answer:
Exporting and importing.

Question 12.
Which of the following documents is not required in export trade?
(a) Certificate of Origin
(b) Certificate of Inspection
(c) Mate’s receipt
(d) Bill of Entry
Answer:
(d) Bill of Entry

Section – B

II. Answer any ten of the following questions in two or three sentences each. Each question carries 2 marks: ( 10 × 2 = 20 )

Question 13.
State any two types of Economic activities.
Answer:
The different types of economic activities are:
(a) Business
(b) Profession
(e) Employment.

Question 14.
Who is a Nominal Partner?
Answer:
Partners who only allow the firm to use their name as a partner. They do not have any real interest in the business of the firm such partners knOwn as a nominal partner.

Question 15.
Mention any two merits of Statutory Corporations.
Answer:
The benefits of the statutory corporation are:
(a) They enjoy independence in their functioning and a high degree of operational flexibility. They are free from undesirable government regulation and control.

(b) Since the funds of these organizations do not come from the central budget, the government generally does not interfere in their financial matters, including their income and receipts.

(c) Since they are autonomous organizations they frame their own policies and procedures within the powers assigned to them by the Act. The act may, however, provide few issues matters which require prior approval of a particular ministry.

(d) A statutory corporation is a valuable instrument for economic development. It has the power of the government, combined with the initiative of private enterprises.

Limitations:
(a) In reality, a statutory corporation does not enjoy as much operational flexibility as stated above. All actions are subject to many rules and regulations.
(b) Government and political interference has always been there in major decisions or where huge funds are involved.

Question 16.
State any two examples for specialized banks.
Answer:
Foreign Exchange Bank; Industrial Banks.

Question 17.
State any two benefits of e-Business.
Answer:
Two benefits of e-business are:
(a) Global reach/access
(b) Convenience.

Question 18.
What is business ethics?
Answer:
Business ethics is defined as a set of moral standards which society expects from businessmen.

Question 19.
Name any two stages in the formation of a company.
Answer:
(a) Promotion stage.
(b) Incorporation stage.

Question 20.
Name any two internal sources of business finance.
Answer:
(a) Equity shares
(b) Retained earnings.

Question 21.
Give the meaning of village industries.
Answer:
Village industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000.

Question 22.
What do you mean by Departmental stores?
Answer:
A Departmental Store is a large-scale retail shop where a large variety of goods are sold in a single building. The entire building is divided into a number of departments or sections. In each department, specific types of goods like stationery items, books, electronic goods, garments, jewelry, etc. are made available.

Question 23.
Write the meaning of “Licensing”.
Answer:
Licensing is a contractual arrangement in which one firm grant access to its patents, trade secrets, or technology to another firm in a foreign country for a fee called royalty.

Question 24.
Give the meaning to Bill of Lading.
Answer:
Bill of lading is a document wherein a shipping company gives its official receipt of the goods put on board its vessel and at the same time gives an undertaking to carry them to the port of destination.

Section – C

III. Answer any seven of the following questions in 10-12 sentences. Each question carries 4 marks: ( 7 × 4 = 28 )

Question 25.
Explain briefly any four characteristics of the business.
Answer:
(a) An economic activity: Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood and not because of love, affection, sympathy, or any other sentimental reason.

(b) Dealings in. goods and services on a regular basis: Business involves dealings in goods or services on a regular basis. One single transaction of sale or purchase does not constitute a business.

(c) Profit earning: One of the main purposes of business is to earn income by way of profit. No business can survive for long without earning profit. That is why businessmen make all possible efforts to maximize profits, by increasing the volume of sales or reducing costs.

(d) Sale or exchange of goods and services: Directly or indirectly, business involves the transfer or exchange of goods and services for valùe. If goods are produced not for the purpose of sale but say for internal consumption, it cannot be called a business activity.

Question 26.
Explain briefly any four features of Global Enterprises.
Answer:
Features:
(a) Huge capital resources: These enterprises are characterized by possessing huge financial resources and the ability to raise funds from different sources. Because of their financial strength, they are able to survive under all circumstances.

(b) Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc.

(c) Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international standards and quality specifications. This leads to the industrial progress of the country.

(d) Product innovation: These enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.

Question 27.
Briefly explain any four functions of Warehousing.
Answer:
Usually, goods are not sold or consumed immediately after production. They are held in stock to be available as and when required. Special arrangements must be made for the storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilitates the availability of goods when needed.

Functions of Warehousing
(a) Consolidation: The warehouse receives and consolidates materials/goods from different production plants and dispatches the same to a particular customer on a single transportation shipment.

(b) Break the Bulk: The warehouse divides the bulk quantity of goods received from the production plants into smaller quantities and then transported according to the requirements of clients to their places of business.

(c) Stock Piling Goods or Raw Materials which are not required immediately for sale or manufacturing are stored in warehouses to be made available to business depending on customer’s demand. This type of warehouse is also known as the storehouse of surplus goods.

(d) Value Added Services: Provision of value-added services such as in transit mixing, packaging, and labeling is also a function of modem warehousing.

(e) Price Stabilization: Warehousing performs the function of stabilizing prices by adjusting the supply of goods according to demand. Financing warehouse owners provide loans to the owners on the security of goods and further supply goods on credit terms to customers. The warehouse keepers issue a receipt when goods are kept in the warehouse. This receipt can be used as security to get loans from banks and owners. in this way, it also helps in financing.

Question 28.
Bring out any four distinctions between Traditional Business and e-Business.
Answer:

Question 29.
Explain briefly any four arguments for social responsibility.
Answer:
The arguments for social responsibilities are:
(a) Public image: The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of a business also depend upon the public image of its activities.

(b) Government regulation: To avoid government regulations businessmen should discharge their duties voluntarily.

(c) Survival and growth: Every business is a part of society. So for its survival and growth, support from society is very much essential. The business utilizes the available resources like power, water, land, roads, etc. of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of society.

(d) Employee satisfaction: Besides getting a good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education, and training. Employers should try to fulfill all the expectations of the employees because employee satisfaction is directly related to productivity.

Question 30.
Explain briefly any four clauses of the Memorandum of Association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: it contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and preference shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: ¡t contains financial limit up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

Question 31.
Explain briefly any four merits of preference shares.
Answer:
Merits:
(a) Preference shares provide reasonably steady income in the form of fixed rate of return and safety of the investment.
(b) Preference shares are useful for those investors who want a fixed rate of return with comparatively low risk.
(c) It does not affect the control of equity shareholders over the management as preference shareholders don’t have voting rights.
(d) Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
(e) Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company.

Question 32.
Write short notes on:
(a) Retained earnings
(b) Trade credit.
Answer:
Retained Earnings: A company generally does not distribute all its earnings amongst the shareholders as dividends but a portion of the net earnings may be retained in the business for use in the future this is known as retained earnings. It is a source of internal financing or self-financing or ‘plowing back of profits. The profit available for plowing back in an organization depends on many factors like net profits, dividend policy, and age of the organization.

Trade Credit: It is the credit extended by one trader to another for the purchase of goods and services. Track credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organizations as a source of short-term financing. It is granted to those customers who have a reasonable amount of financial standing and goodwill. The volume and period of credit extended depend on factors such as the reputation of the purchasing firm, the financial position of the seller, volume of purchases, past record of payment, and degree of competition in the market. Terms of trade credit may vary from one industry to another and from one person to another. A firm may also offer different credit terms to different customers.

Question 33.
Explain briefly any four problems faced by Small businesses.
Answer:
(a) Finance: The most serious problem faced by SSIs is the non-availability of adequate finance to carry out their operations. Small scale sector lacks the creditworthiness and collateral required to raise capital from the capital markets or financial institutions and hence they depend on local money lenders who charge high-interest rates.

(b) Raw materials: Another major problem of small businesses is the procurement of raw materials. If the required materials are not available, they havé to compromise on the quality or have to pay a high price to get good quality materials. They purchase raw materials in small quantities due to a lack of storage capacity and hence their bargaining power is low.

(c) Managerial skills: Small business is generally promoted and operated by a single person, who may not possess all the managerial skills required to run the business. Many small business entrepreneurs possess sound technical knowledge but are less successful in marketing and may not find enough time to take care of all functional activities.

(d) Less productive labor: Small business firms cannot afford to pay high salaries to their employees, which affects employee willingness to work. Thus, productivity per employee is relatively low and employee turnover is generally high. Small business organizations are unable to attract talented people because of lower remuneration. Division of labor cannot be practiced in small-scale units, which results in a lack of specialization and concentration.

Question 34.
Explain briefly any four services of wholesalers to Manufacturers.
Answer:
Wholesalers services to producers are:
(a) Facilitating large-scale production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale,

(b) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process, they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

(c) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payments for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks.

(d) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advise the manufacturers about various aspects including customer’s tastes and preferences, market conditions, competitive activities, and the features preferred by the buyers.

Section – D

IV. Answer any four of the following questions in 20-25 sentences each. Each question carries 8 marks: ( 4 × 8 = 32 )

Question 35.
Explain any four merits and four demerits of the Partnership form of business.
Answer:
Merits of partnership are:
(a) Easy to. form: Like sole proprietorship, the partnership business can be formed easily without any legal formalities.
(b) More funds: In a partnership, the capital is contributed by a number of partners. This makes it possible to raise a larger amount of funds as compared to a sole proprietor and undertake ad4itional operations when needed.
(c) Sharing risks: The risks involved in running a partnership firm are shared by all the partners. This reduces the anxiety, burden, and stress on individual partners.
(d) Secrecy: A partnership firm is not legally required to publish its accounts and submit its reports. Hence it is able to maintain the confidentiality of information relating to its operations.

Demerits of partnership are:
(a) Limited capital: Since the total number of partners cannot exceed 20, the capital to be raised is always limited. It may not be possible to start a very large business in partnership form.
(b) Lack of continuity of business: A partnership firm comes to an end in the event of death, lunacy, or retirement of any partner. Even otherwise, it can discontinue its business at the will of the partners. At any time, they may take a decision to end their relationship.
(c) Lack of public confidence: There is no governmental supervision over the affairs of the business of a partnership and publishing accounts is also not necessary. Hence, the public may not have full confidence in them.
(d) Unlimited liability: The liability of each partner is not limited to the amount invested but his private property is also liable to pay the business obligations.

Question 36.
Explain briefly the features of Joint Stock Company.
Answer:
(a) Artificial person: Just like an individual, who takes birth, grows, enters into relationships, and dies, a joint-stock company takes birth, grows, enters into relationships, and dies. However, it is called an artificial person as to its birth, existence, and death are regulated by law arid it does not possess phýsical attributes like that of a normal person.

(b) Legal formation: No single indìvidtial or a group of individuals can start a business and call it a joint-stock company. A joint-stock company comes into existence only when it has been registered after completioñ of all formalities required by the Indian Companies Act., 2013.

(c) Separate legal entity: Being an artificial person a company has its own legal entity separate from its members. It can own assets or property, enters into contracts, sue, or can be sued by anyone in the court of law. Its shareholders cannot be held liable for any conduct of the company.

(d) Perpetual existence: A joint-stock company continues to exist as long as it fulfills the requirements of law. It is not affected by the death, lunacy, insolvency, or retirement of any of its members.

(e) Common seal: A joint-stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company’s seal ‘is put and is duly signed bý any official of the company, becomes binding on the company.

(f) Association of persons: A company is a voluntary association of persons established for-profit motive. A private company must have at least 2 persons and the public limited company must have at least 7 persons to get it registered. The maximum number of persons required for the registration in the case of a private company is 50 and in the case of a public company, there is no maximum limit.

(g) Limited liability: The liability of the shareholders is limited to the extent of the face value of the shares held by them. The shareholders are not liable personally for the paýment of the debt of the company.

(h) Transferability of shares: The shares of a public limited company are freely transferable and can be purchased and sold through the stock exchanges. A shareholder of a public limited company can transfer his shares without the consent of others except in the case of private companies.

(i) Large capital: A joint-stock company can raise a large amount of capital because the number of persons contributing towards capital is more in number when compared to sole proprietorship or partnership.

(j) Democratic management: Joint stock companies have democratic management and control. That is, even though the shareholders are owners of the company, all of them cannot participate in ‘the management of the company. Normally, the shareholders elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.

Question 37.
Explain the principles of insurance.
Answer:
(a) Principle of Utmost Good Faith: According to this principle, the insurance contract must be signed by both parties (i.e. insurer and insured) in absolute good faith or belief or trust. The person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance.

Example: If any person has taken a life insurance policy by hiding the fact that he is a cancer patient and later on if he dies because of cancer then the Insurance Company can refuse to pay the compensation as the fact was hidden by the insured.

(b) Principle of Insurable Interest: As per this principle, the insured must have an insurable interest in the subject matter of insurance. It means the insured should gain by the existence or safety and lose by the destruction of the subject matter of insurance.

Example: If a person has taken the loan against the security of factory premises then the lender can take the fire insurance policy of that factory without being the owner of the factory because he has a financial interest in the factory premises.

(c) Principle of Indemnity: According to the principle of indemnity, an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. The insurance contract is not made for making a profit else its sole purpose is to give compensation in case of any damage or loss.

Example: A person insured a car for 5 lakhs against damage or an accident case. Due to the accident, he suffered a loss of 3 lakhs, then the insurance company will compensate him 3 lakhs not only the policy amount i.e., 5 lakhs as the purpose behind it is to compensate not to make a profit.

(d) Principle of Contribution: According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers in a proportion or from any one insurer.

Example: A person gets his house insured against fire for 50,000 with insurer A and for 25,000 with insurer B. A loss of 37,500 occurred. Then A is liable to pay 25,000 and B is liable to pay 12,500.

(e) Principle of Subrogation: According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer.

Example: If a person receives Rs. 1 lakh for his or her damaged stock, then the ownership of the stock will be transferred to the insurance company and the person will hold no control over the stock.

(f) Principle of Mitigation of Loss: According to the Principle of mitigation of loss, the insured must always try his level best to minimize the loss of his insured property, in case of uncertain events like a fire outbreak or blast, etc. The insured must not neglect and behave irresponsibly during such events just because the property is insured.

Example: If a person has insured his house against ere, then, in case of fire, he or she should take all possible measures to minimize the damage to the property exactly in the manner he or she would have done in absence of the insurance:

(g) Principle of Causa Proxima: Principle of Causa Proxima (a Latin phrase), or in simple English words, the Principle of Proximate (i.e. Nearest) Cause, means when a loss is caused by more than one causes, the proximate or the nearest cause should be taken into consideration to decide the liability of the insurer.

Example: If an individual suffers a loss in a fire accident, then this should already be a part of the contract in order for this person to claim the insurance amount.

Question 38.
Explain four merits and four limitations of equity shares as a source of finance.
Answer:
Merits:
From Shareholders Point of View:
(a) The equity shareholders are the owners of the company.
(b) It is suitable for those who want to take risks for higher returns.
(c) The value of equity shares goes up in the stock market with the increase in profits of the concern.
(d) Equity shares can be easily sold in the stock market.
(e) The liability is limited to the nominal value of shares.
(f) Equity shareholders have a say in the management of a company as they are conferred voting rights.

From Management Point of View:
(a) A company can raise capital by issuing equity shares without creating any charge on its fixed assets.
(b) The capital raised by issuing equity shares is not required to be paid back during the lifetime of the company. It will be paid back only when the company is winding up.
(e) There is not binding on the company to pay dividends on equity shares. The company may declare dividends only if there are enough profits.
(d) If a company raises more capital by issuing equity shares, it leads to greater confidence among the creditors.

Demerits:
(a) As equity capital cannot be redeemed, there is a danger of overcapitalization.
(b) The dividend which a shareholder receives is neither fixed nor controllable by him. The management of the company decides how much dividend should be given.
(c) Equity share investment is a risky share compared to any other investment.
(d) Equity shareholders get dividends only if there remains any profit after paying debenture interest, tax, and preference dividends. Thus, getting dividends on equity shares is uncertain every year.
(e) Issue of fresh shares reduces the earnings of existing shareholders.
(f) Cost of equity is high when compared to other sources of finance.

Question 39.
Explain the different types of fixed shop small retailers.
Answer:
(a) Street stalls holders: These stalls are located in the main streets or street crossings. A stall is an improvised structure made of tin or wood. The street stall holder displays his goods on a temporary platform and sells toys, stationery, hosiery items. etc. at low prices.

(b) Secondhand goods shops: These shops sell used or second-hand articles such as books, clothes, furniture, etc. They cater to the needs of poor people who cannot afford new articles.

(c) General stores: These stores sell a wide variety of products under one roof. For example, a provision store deals in groceries, toothpaste, razor blades, bathing soap. washing powder, soft drinks, confectionery, cosmetics, etc. Consumers can buy most of their daily requirements in one place. Their time and effort are saved.

(d) Single line stores: These stores deal in one line of goods. They keep stock of different sizes, designs, and quality of goods in the same line. Book stores, chemist shops. electrical stores, shoe stores, cloth stores, jewelry shops, etc., are examples of single-line stores.

(e) Speciality shops: These shops generally specialize in one type of product rather than dealing in a line of products. Shops selling children’s garments. educational books, etc. are examples of such shops.

Question 40.
Explain the benefits of International business both to nations and firms.
Answer:
Benefits of international business to the nation:
(a) Earning of foreign exchange: International business helps a country to earn foreign exchange which it can later use for meeting its imports of capital goods, technology, petroleum products and fertilizers, pharmaceutical products, and a host of other consumer products which otherwise might not be available domestically.

(b) More efficient use of resources: As stated earlier, international business operatçs on a simple principle produce what your country can produce more efficiently, and trade the surplus production so generated with other countries to procure what they can produce more efficiently. When countries trade on this pñnciplejhey end up producing much more than what they can when each of them attempts to produce all the goods and services on its own.

(c) Improving growth prospects and employment potentials: Producing solely for the purposes of domestic consumption severely restricts a country’s prospects for growth and employmeùt. Many cöufltries, especially the developing ones, could not execute their plans to produce on a larger scale, and thus create employment for people because their domestic market was not large enough to absorb all that extra production.

(d) increased standard of living: In the absence of international trade of goods and services, it would not have been possible for the world community to consume goods and services produced in other countries that the people in these countries are able to consume and enjoy a higher standard of living.

(e) Greater variety of goods available for consumption: International trade brings in different varietieš of a particular produèt from different destinations. This gives consumers a wider array of choices which will not only improve their quality of life but as a whole, it will help the country to grow.

(f) Consumption at a cheaper cost: International trade enables a country to consume things that either cannot be produced within its borders or production may cost very high. Therefore it becomes cost cheaper to import from other countries through foreign trade.

(g) Reduces trade fluctuations: By making the size of the market large with large supplies an extensive demand, international trade reduces trade fluctuations. The prices of goods tend to remain more stable.

Benefits of international business to firms
(a) Prospects for higher profits: 1nternatiòna1 business can be more profitable than the domestic business. When the domestic prices are lower, business firms can earn more profits by selling their products in countries where prices are high.

(b) Increased capacity utiI1ation: Many firms set up productioñ capacities for their products which are in exçess of demand in the domestic market. By planning overseas expansion and procuring &n fr foreign çustoiers, they can think of making use of their surplus production capacities also improving the profitability of their operations.

(c) Prospects for growth: Business firms find it quite frustrating when demand for their products starts getting saturated in .the domestic market Such Finns can conšiderably improve prospects of their growth by plunging into overseas markets. This is precisely what has prompted many of the multinationals from the developed countries to enter into markets of developing countries.

(d) Way out to intense competition in the domestic market: When competition in the domestic market is very intense, internationalization seems to be the only way to achieve significant growth. The highly competitive domestic market drives many companies to go international in search of markets for their products.

(e) Improved business vision: The growth of the intçrnational business of many companies is essentially a part of their business policies or strategic management. The vision to become international comes from the urge to grow, the need to become more competitive, the need to diversify, and to gain strategic advantages of internationalization.

Section – E (PRACTICAL ORIENTED QUESTIONS)

V. Answer any two of the following questions: ( 2 × 5 = 10 )

Question 41.
You are planning to start a new business. Make a list of any five factors you consider while selecting a suitable form of business organization.
Answer:
The five-factor that should be considered while selecting a suitable form of business organization are:
(a) Cost
(b) Liability
(c) Continuity
(d) Management ability
(e) Degree of control
(f) Capital consideration
(g) Nature of business.

Question 42.
Suggest any five important sources of finance available for a business organization.
Answer:
Five important sources of finance are available for a business organization:
(a) Owner’s fund:

• Equity shares
• Retained earnings.

(b) Borrowed funds:

• Debenture
• Loans from banks
• Loans from a financial institution
• Public deposit
• Lease financing.

Question 43.
Give a list of any five institutions which support small businesses in India.
Answer:
Five institutions that support small businesses in India are:
(a) National Bañk for Agriculture and Rural Development (NABARD)
(b) National Small Industrial Corporation (NSIC)
(e) Small Industrial Development Bank of India (SIDBI)
(d) Rural and Women Entrepreneurship Development (RWED)
(e) District Industries Centres (DICs).

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2018 (South), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Time: 3.15 Hours
Max Marks: 100

Instructions to candidates:

1. Write the serial number of questions properly as given in the question paper while answering
2. Write the correct and complete answers.

Section – A

I. Answer any ten of following questions in a word or a sentence each. While answering Multiple Choice Questions, write the serial number/alphabet of the correct choice and write the answer corresponding to it. Each question carries one mark: ( 10 × 1 = 10 )

Question 1.
Mention any one type of economic activity.
Answer:
Business is one type of economic activity.

Question 2.
Who is Kartha?
Answer:
Under Hindu Undivided Families, the business is headed by the eldest male member of the family is called Karta.

Question 3.
A government company is any company in which the paid-up capital held by the government is not less than
(a) 49%
(b) 51%
(c) 50%
(d) 25%
Answer:
(b) 51%

Question 4.
Expand RTGS.
Answer:
Real-Time Gross Settlement.

Question 5.
The payment mechanism most typical to e-business is
(a) Cash on delivery
(b) Cheques
(c) Credit and debit card
(d) e-cash
Answer:
(d) e-cash

Question 6.
Carbon monoxide emitted by automobiles directly contributes to
(a) Water pollution
(b) Noise pollution
(c) Sound pollution
(d) Air pollution
Answer:
(d) Air pollution

Question 7.
Who are promoters?
Answer:
A person or group of persons who conceive the idea of setting up a new business, assess its feasibility and take necessary steps to arrange the basic requirements, and establish a business unit say, a Company and put into operation is known as a promoter.

Question 8.
A.D.R. is issued in
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

Question 9.
What is the TAX holiday?
Answer:
A government incentive program that offers a tax reduction or elimination to businesses is called tax holiday.

Question 10.
What is retail trade?
Answer:
A retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers. He normally buys goods in large quantities from wholesalers and sells them in small quantities to the ultimate consumers.

Question 11.
What is import trade?
Answer:
Import trade refers to the purchase of goods from other countries for dòmestic use.

Question 12.
Name any one document of export business.
Answer:
Export invoice.

Section – B

II. Answer any ten of the following questions in two or three sentences each. Each question carries 2 marks: ( 10 × 2 = 20 )

Question 13.
State any two auxiliaries to trade.
Answer:
(a) Banking and Finance
(b) Transport and Communication

Question 14.
Define Partnership.
Answer:
According to Section 4(2) Indian Partnership Act, 192 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Question 15.
State any two merits of Departmental undertakings.
Answer:
Merits:
(a) These undertakings fâcilitate the Parliament to exercise effective control over their operations.
(b) These ensure a high degree of public accountability.

The limitations of the departmental undertaking are:
(a) Departmental undertakings fail to provide flexibility, which is ‘essential for the smooth operation of the business.
(b) The employees or heads of departments of such undertakings are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delays, in matters where prompt decisions are required.

Question 16.
What is e-banking?
Answer:
it means conducting banking operations through electronic means or devices such as computers mobile, ATMs, etc.

Question 17.
State any two benefits of e-business.
Answer:
Two benefits of e-business are:
(a) Global reach/access
(b) Convenience.

Question 18.
What is business ethics?
Answer:
Business ethics is defined as a set of moral standards which society expects from businessmen.

Question 19.
Give the meaning of minimum subscription.
Answer:
In order to prevent companies from commencing business with inadequate resources, it has been provided that the company must receive applications for a certain minimum number of shares before going ahead with the allotment of shares. According to the Companies Act, this is called the ‘minimum subscription’.

Question 20.
Give the meaning of shares.
Answer:
Share is the smallest unit into which the total capital of the company is the dividend.

Question 21.
Give the meaning of village industries.
Answer:
Village industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000.

Question 22.
Give the meaning of supermarket.
Answer:
Super Market is a large-scale retail store that sells a wide varietý of products like food items, vegetables, fruits, groceries, utensils, clothes, electronic appliances, household goods, etc. all under one roof.

Question 23.
What is Franchising?
Answer:
According to Charles W.L. Hill, “Franchising is basically a špecialised form of licensing in which the franchisor not only sells the intangible property to the franchisee but also insists that the franchisee agrees to abide by strict rules as to how it does business.”

Question 24.
What are mate’s receipts?
Answer:
Mate’s receipt is given by the commanding officer of the ship to the exporter after the cargo is loaded on the ship. The mate’s receipt indicates the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo àt the time of receipt on board the ship, etc.

Section – C

III. Answer any seven of the following questions in 10-12 sentences. Each question carries 4 marks: ( 7 × 4 = 28 )

Question 25.
Explain briefly any four objectives of the business.
Answer:
Economic objectives: Business is an economic activity so their primary objectives are economic.
(a) Earning profits: One of the objectives of the business is to earn profits on the capital employed. Profitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is so important for its survival and growth.

(b) Market standing: Market standing refers to the posìtion of an enterprise in relation to its competitors. A business enterprise must aim at standing on a stronger footing in terms of offering competitive products to its customers and serving them to their satisfaction.

(c) Optimum utilization of resources: it is also one of the economic objectives of the business. It means using the resources in an optimum manner (i.e. without wastage) that helps in reduction of cost and increases the profit.

Social objectives: Business is an economic activity that cannot be carried on in isolation; there is the social objective of the business. The important social objectives of modern businesses are:
(a) Providing employment: One of the important social objectives of a business is to provide employment to society. This can be achieved by establishing new business units, expanding the market, etc.
(b) Paying fair wages and providing other benefits to the employees: One of the important social objectives of a business is to pay fair wages and other benefits such as medical facilities, transport, housing, etc. to employees.
(c) Prevention of pollution: With the growth of industries, pollution has become a serious matter. Pollution affects the hygiene and the health of human beings and even animaLs. So, one of the social objectives and obligations of every business is to make efforts to prevent the pollution of air and water.

Question 26.
Briefly explain any four features of Global Enterprises.
Answer:
Features:
(a) huge capital resources: These enterprises are characterized by possessing huge financial resources and the ability to raise funds from different sources. Because of their financial strength, they are able to survive under all circumstances.

(b) Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc.

(c) Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international stand4rds and quality specifications. This leads to the industrial progress of the country.

(d) Product innovation: These enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.

Question 27.
Explain briefly the functions of Commercial Banks.
Answer:
The main functions of commercial banks are accepting deposits from the public and advancing them loans. However, besides these functions, there are many other functions that these banks perform.

All these functions can be divided under the following heads:
(a) Accepting Deposits: The most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks. Generally, there are three types of deposits which are as follows:

1. Saving Bank Account: Thee accounts are introduced by the bank to mobilize small savings of low and middle-income groups of people. The ‘saving account’ is generally opened in the bank by salaried persons or by persons who have a fixed regular income.

2. Current account: This account is opened by businessmen who have a higher number of regular transactions with the bank.

3. Recurring Deposit Account: In a recurring deposit account, a certain fixed amount is invested every month for a specified period and the total amount is repaid with interest at the end of the particular fixed period.

4. Fixed Deposit Account: If the money is deposited by the customer with a bank for a fixed period of time for a fixed rate of interest. it iš repayable on expiry of a specified period of time.

(b) Giving Loans: The second important function of commercial banks is to advance loans to their customers. Banks charge interest from the borrowers and this is the main source of their income Banks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the accounts of borrowers. In other words, they create loans out of deposits and deposits out of loans. This is called credit creation by commercial banks.

Banks generally give the following types of loans and advances:

• Bank Overdraft: An overdrive is an advance given by the bank allowing a customer to overdraw his current account up tò an agreed amount. Interest is charged at an agreed rate only on the amount overdrawn.
• Cash Credits: Cash credit is a short-term cash loan to a company. It is a financial accommodation under which an advance is granted on a separate account called a cash credit account up to a specified limit.
• Demand Loans: These are loans that can be recalled on demand by the banks. The entire loan amount is paid in a lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.
• Short-term Loans: These loans may be given as personal loans, loans to finance working capital, or as priority sector advances. These are made against some security and the entire loan amount is transferred to the loan account of the borrower.

Discounting of Bills of Exchange: It is short-term financial assistance extended by the bank usually tõ the businesses that they have a current account with the bank. When a bill of exchange is presented before the bank for encashment, the bank credits the amount to the customer’s account after deducting some discount. On maturity of the bill, the payment is received by the bank from the drawee.

(c) Investment of Funds: The banks invest their surplus funds in three types of securities as Government securities, other approved securities, and other securities.

• Government securities include both, central and state governments, such as treasury bills, national savings certificates, etc.
• Other securities include securities of state-associated bodies like electricity boards. housing boards, debentures of land development banks units of UTI, shares of regional rural banks, etc.

(d) Agency Functions: Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:

• Banks collect cheques, drafts, bills of exchange, and dividends of the shares for their customers.
• Banks make payment for their clients and at times accept the bills exchange: of their customers for which payment is made at the fixed time.
• Banks pay the insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest, etc. as per directions.
• Banks purchase and sell securities, shares, and debentures on behalf of their customers.
• Banks arrange to send money from one place to another for the convenience of their customers.

(e) Miscellaneous Functions: Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:

• Banks make ai-arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, ‘çal documents, etc.
• Banks give reference for their cu.4tomers.
• Banks collect necessary and useful statistics relating to trade and industry.
• For facilitating foreign trade, banks undertake to sell and purchase foreign exchange.
• Banks advise their clients relating to investment decisions as specialists.
• Bank does the underwriting of shares and debentures also.
• Banks issue letters of credit.
• During natural calamities, banks arc highly useful in mobilizing funds and donations.

Question 28.
Bring out any four distinctions between traditional business and e-business.
Answer:

Question 29.
Explain the social responsibility of business towards.
(a) Shareholders
(b) Consumers
Answer:
Social responsibility of business towards shareholders:
(a) A fair rate of dividend should be regularly paid by the business enterprises to their owners.
(b) Management techniques should be effective and efficient so that the net present value of the business is maximized.
(c) Owners should be given the right to participate in the affairs of the enterprise.
(d) The tendency towards the growth of ‘Oligarchic management’ should be arrested.
(e) The owners should be given the full information regarding the working of the company. In other words, accurate and comprehensive reports have to be supplied.
(f) Financial information has to be disclosed and doubts, have to be clarified.
(g) Chairman and directors of the company should be easily accessible to the owner.

Social responsibility of business towards consumer:
(a) Ensuring availability of products in the right quantity, at the right place, and at the right time.
(b) Maintaining the quality of the goods, increasing the quality to the maximum extent so as to compete with any international product.
(c) Charging reasonable prices to its products.
(d) Correct weights and measures have to be used.
(e) The company must provide after-sale service for maintenance of goods.
(f) The business firms should avoid restrictive trade practices and see that full justice is done to the amount that is spent by a consumer.
(g) Constant investigation and discovery of growing wants of consumers, giving importance for research and development of new products that satisfy their wants
(h) Taking all such measures which promote consumer satisfaction, interest, and welfare.

Question 30.
Explain briefly any four clauses of the Memorandum of Association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: It contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and preference shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: It contains financial limits up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

Question 31.
Explain briefly the financial needs of a business.
Answer:
(a) To purchase fixed assets: Every type of business needs some fixed assets like land and building. furniture, machinery, etc. A large amount of money is required for the purchase of these assets.
(b) To meet day-to-day expenses: After the establishment of a business, funds are needed to carry out day-to-day operations.
(c) To fund business growth: Growth of business may include expansion of the existing line of business as well as adding new lines. To finance such growth, one needs more funds.
(d) To bridge the time gap between production and sales: The amount spent on production is realized only when sales are made. Normally, there is a time gap between production and sales and also between sales and realization of cash. Hence during this interval, expenses continue to be incurred, for which funds are required.
(e) To meet contingencies: Funds are always required to meet the ups and downs of business and for some unforeseen problems.

Question 32.
What are public deposits? Explain four merits of public deposit as a source of business finance.
Answer:
Merits
(a) The deposits that are raised by organizations directly from the public are known as public deposits.
(b) The procedure of obtaining deposits is simple and does not contain restrictive conditions as are generally there in a loan agreement.
(c) Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.
(d) Public deposits do not usually create any charge on the assets of the company. e assets can be used as security for raising loans from other sources.
(e) As the depositors do not have voting rights, the control of the company is not diluted.

Demerits
(a) New companies generally find it difficult to raise funds through public deposits.
(b) It is an unreliable source of finance as the public may not respond when the company needs money.
(c) Collection of public deposits may prove difficult, particularly when the size of deposits required is large.

Question 33.
Briefly explain any four common incentives to attract small-scale industries in rural areas by the government.
Answer:
Some of the common incentives provided by the Government for industries in backward and hilly areas are as follows:
(a) Land: Every state offers developed plots for setting up industries. The terms and conditions may vary. Some states don’t charge rent in the initial years, while some allow payment in installments.
(b) Power: It is supplied at a concessional rate of 50%, while some states exempt such units from payment in the initial years.
(c) Water: It is supplied on a no-profit, no-loss basis or with 50% concession or exemption from water charges for a period of 5 years. Sales Tax: In all union territories, industries are exempted from sales tax, while some states extend the exemption for 5 years period.
(d) Octroi: Most states have abolished octroi.
(e) Raw materials: Units located in backward areas get preferential treatment in the matter of allotments of scarce raw materials like cement, iron, and steel, etc.
(f) Finance: Subsidy of 10-15% is given for building capital assets. Loans are also offered at concessional rates.
(g) Industrial estates: Some states encourage the setting up of industrial estates in backward areas.
(h) Tax holiday: Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.

Question 34.
Explain briefly the four merits of departmental stores.
Answer:
Merits
(a) Attract a large number of customers: As these stores are usually located in central places they attract a large number of customers during the best part of the day.

(b) Convenience in buying: By offering a large variety of goods under one roof the departmental stores provide great convenience to customers in buying almost all goods of their requirements at one place. As a result, they do not have to run from one place to another to complete their shopping.

(c) Attractive services: A departmental store aims at providing maxîmum services to the customers. Some of the services offered by it include home delivery of goods, execution of telephone orders, grant of credit facilities, and provision for restrooms, telephone booths, restaurants, salons, etc.

(d) Economy of large-scale operations: As these stores are organized at a very large scale, the benefits of large-scale operations, particularly, in respect of the purchase of goods are available to them.

(e) Promotion of sales: The departmental stores are in a position to spend a considerable amount of money on advertising and other promotional activities, which help in boosting their sales.

Section – D

IV. Answer any four of the following questions in 20-25 sentences each. Each question carries 8 marks: ( 4 × 8 = 32 )

Question 35.
Briefly explain the various types of financial institutions.
Answer:
Industrial Finance Corporation of India (IFCI):

• It was established in July 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948.
• Its objectives include assistance towards balanced regional development and encouraging new entrepreneurs to enter into the priority sectors of the economy.

State Financial Corporations (SFC):

• The State Financial Corporations Act, 1951 empowered the State Governments to establish State Financial Corporations.
• Its, objective providing medium and short-term finance to industries of the states.
• SFCs are helpful in ensuring balanced regional development, higher investment, more employment generation, and broad ownership of industries.

Industrial Credit and Investment Corporation of India (ICICI)

• This was established in 1955 as a public limited company under the Companies Act.
• Its objective is to assists the creation, expansion, and modernization of industrial enterprises exclusively in the private sector.

Question 36.
Explain briefly the import trade procedure.
Answer:
(a) Trade inquiry: The importing firm approaches the export firms with the help of trade inquiry they collecting information about their export prices and terms of exports. After receiving a trade inquiry, the exporter will prepare a quotation called a proforma invoice.

(b) Procurement of import license: There are certain goods that can be imported freely, while others need licensing. The importer needs to consult the Export-Import (EXIM) policy in force to know whether the goods that he or she wants to import are subject to import licensing.

(c) Obtaining foreign exchange: Since the supplier in the context of an import transaàtion resides in a foreign country, he/she demands payment in a foreign currency Payment in foreign currency involves the exchange of Indian currency into foreign currency.

(d) Placing order or indent: Aller obtaining the import license, the importer placeš an import order or indent with the exporter for the supply of the specified prodücts. The import order contains information about the price, quantity size, grade, and quality of goods ordered and the instructions relating to packing, shipping, ports of shipment and destination, etc

(e) Arranging for finance: The importer should make arrangements in advance to pay to the exporter on the arrival of goods at the port. Advanced planning for financing imports is necessary so as to avoid huge demurrages (i.e., penalties) on the imported goods lying uncleared at the port for want of payments.

(f) Obtaining a letter of credit: If the payment terms agreed between the importer and the overseas supplier is a letter of credit, then the importer should obtain the letter of credit from its bank and forward it to the overseas supplier.

(g) Receipt of shipment advice: After loading the goods on the vessel, the overseas supplier dispatches the shipment advice to the importer. Shipment advice contains information about the shipment of goods.

(h) Retirement of import documents: Having shipped the goods, the overseas supplier prepares a set of necessary documents as per the terms of contract and letter of credit and hands it over to his or her banker for their onward transmission and negotiation to the importer in the manner as specified in the letter of credit.

(i) Arrival of goods: Goods are shipped by the overseas supplier as per the contract. The person in charge of the carrier (ship or airway) informs the officer in charge at the dock or the airport about the arrival of goods in the importing country. He provides the document called import general manifest. import general manifest is a document that contains the details of the imported goods.

(j) Customs clearance and release of goods: All the goods imported into India have to pass through customs clearance after they cross the Indian borders. Customs clearance is a somewhat tedious process and calls for completing a number of formalities. It is, therefore, advised that importers appoint C&F agents who are well versed with such formalities and play an important role in getting the good’s customs cleared.

Question 37.
Explain the principles of insurance.
Answer:
(a) Principle of Utmost Good Faith: According to this principle, the insurance contract must be signed by both parties (i.e. insurer and insured) in absolute good faith or belief or trust. The person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance.

Example: If any person has taken a life insurance policy by hiding the fact that he is a cancer patient and later on if he dies because of cancer then the Insurance Company can refuse to pay the compensation as the fact was hidden by the insured.

(b) Principle of Insurable Interest: As per this principle, the insured must have an insurable interest in the subject matter of insurance. It means the insured should gain by the existence or safety and lose by the destruction of the subject matter of insurance.

Example: If a person has taken the loan against the security of factory premises then the lender can take the fire insurance policy of that factory without being the owner of the factory because he has a financial interest in the factory premises.

(c) Principle of Indemnity: According to the principle of indemnity, an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. The insurance contract is not made for making a profit else its sole purpose is to give compensation in case of any damage or loss.

Example: A person insured a car for 5 lakhs against damage or an accident case. Due to the accident, he suffered a loss of 3 lakhs, then the insurance company will compensate him 3 lakhs not only the policy amount i.e., 5 lakhs as the purpose behind it is to compensate not to make a profit.

(d) Principle of Contribution: According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers in a proportion or from any one insurer.

Example: A person gets his house insured against fire for 50,000 with insurer A and for 25,000 with insurer B. A loss of 37,500 occurred. Then A is liable to pay 25,000 and B is liable to pay 12,500.

(e) Principle of Subrogation: According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer.

Example: If a person receives Rs. 1 lakh for his or her damaged stock, then the ownership of the stock will be transferred to the insurance company and the person will hold no control over the stock.

(f) Principle of Mitigation of Loss: According to the Principle of mitigation of loss, the insured must always try his level best to minimize the loss of his insured property, in case of uncertain events like a fire outbreak or blast, etc. The insured must not neglect and behave irresponsibly during such events just because the property is insured.

Example: If a person has insured his house against ere, then, in case of fire, he or she should take all possible measures to minimize the damage to the property exactly in the manner he or she would have done in absence of the insurance:

(g) Principle of Causa Proxima: Principle of Causa Proxima (a Latin phrase), or in simple English words, the Principle of Proximate (i.e. Nearest) Cause, means when a loss is caused by more than one causes, the proximate or the nearest cause should be taken into consideration to decide the liability of the insurer.

Example: If an individual suffers a loss in a fire accident, then this should already be a part of the contract in order for this person to claim the insurance amount.

Question 38.
Explain any eight factors that affect the choice of an appropriate source of Business Finance.
Answer:
(a) Cost: There are two types of cost viz., the cost of procurement of funds and cost of utilizing the funds. Both these costs should be taken into account while deciding about the source of funds that will be used by an organization.

(b) Financial strength and stability of operations: The financial strength of a business is also a key determinant. In the choice of source of funds, the business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount.

(c) Form of organization and legal status: The form of business organization and status influences the choice of a source for raising money.

(d) Purpose and time period: Business should plan according to the time period for which the funds are required. A short-term need for example can be met through borrowing funds at a low rate of interest through trade credit, commercial paper, etc. For long-term finance, sources such as the issue of shares and debentures are more appropriate.

(e) Risk profile: Businesses should evaluate each of the sources of finance in terms of the risk involved. For example, there is the least risk inequity as the share capital has to be repaid only at the time of winding up and dividends need not be paid if no profits are available.

(f) Control: A particular source of funds may affect the control and power of the owners on the management of a firm. Issue of equity shares may mean dilution of the control.

(g) Effect on crêdit worthiness: The dependence of business on certain sources may affect its creditworthiness in the market.

(h) Flexibility and ease: Another aspect affecting the choice of a source of finance is the flexibility and ease of obtaining funds. Restrictive provisions, detailed investigation, and documentation in case of borrowings from banks and financial institutions.

Question 39.
Explain four merits and four demerits of Mail Order Houses.
Answer:
Merits
(a) Limited capital requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities. Therefore, it can be started with a relatively low amount of capital.

(b) Elimination of middlemen: The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middleman between the buyers and sellers are eliminated. This may result in a lot of savings both to the buyers as well as to the sellers.

(c) Wide reach: Under this system, the goods can be sent to all the places having postal services. This opens a wide scope for business as a large number of people throughout the country can be served through the mail.

(d) Convenience: Under this system goods are delivered to the doorstep of the customers. This results in great convenience to the customers in buying these products.

(e) Absence of bad debt: Since the mail-order houses do not extend credit facilities to the customers, there are no chances of any bad debt on account of non-payment of cash by the customers.

Limitations
(a) No credit: Supermarkets sell their products cash basis only. No credit facilities are made available to the buyers. This restricts the purchasing power of buyers from such markets.

(b) No personal attention: Supermarkets work on the principle of self-service. The customers, therefore, don’t get any personal attention. As a result, such commodities that require personal attention by salespeople cannot be handled effectively in supermarkets.

(c) Mishandling of goods: Some customers handle the goods kept on the shelf carelessly. This may raise costs in supermarkets.

(d) High overhead expenses: Supermarket incurs high overhead expenses. As a result, there have not been able to create low-price appeal among the customers.

(e) Possibility of abuse: This type of business provides a greater possibility of abuse to dishonest traders to cheat the customers by making false claims about the products or not honoring the commitments made through handbills or advertisements.

(f) High dependence on postal services: The success of mail-order business depends heavily on the availability of efficient postal services at a place. But in a vast country like ours, where many places are still without postal facilities, this type of business has Limited prospects.

Question 40.
What is a joint venture and explains the merits and demerits?
Answer:
A joint venture means establishing a firm that is jointly owned by two or more otherwise independent fiíms. In the widest sense of the term, it can also be described as any form of association which implies collaboration for more than a transitory period.

Advantages:
(a) Since the local partner also contributes to the equity capital of such a venture, the international firm finds it financially less burdensome to expand globally.
(b) Joint ventures make it possible to execute large projects requiring huge capital outlays and manpower.
(c) The foreign business firm benefits from a local partner’s knowledge of the host countries regarding the competitive conditions, culture, language, political systems, and business systems.
(d) In many cases entering into a foreign market is very costly and risky. This can be avoided by sharing costs and/or risks with a local partner under joint venture agreements.

Limitations:
(a) Foreign firms entering into joint ventures share the technology and trade secrets with local firms in foreign countries, thus always running the risks of such technology and secrets being disclosed to others.
(b) The dual ownership arrangement may lead to conflicts, resulting in a battle for control between the investing firms.

Section – E (PRACTICAL ORIENTED QUESTIONS)

V. Answer any two of the following questions: ( 2 × 5 = 10 )

Question 41.
As the owner of a business unit, what risks are faced by you in running it?
Answer:
The risk faced by the owner while mining a business unit are:

1. Market information risk
2. Consumer taste and preferences risk
3. Government policy risk
4. Capital risk
5. Operational risk.

Question 42.
Give a list of any live institutions which support small businesses in India.
Answer:
Five institutions that support small businesses in India are:
(a) National Bañk for Agriculture and Rural Development (NABARD)
(b) National Small Industrial Corporation (NSIC)
(c) Small Industrial Development Bank of India (SIDBI)
(d) Rural and Women Entrepreneurship Development (RWED)
(e) District Industries Centres (DICs).

Question 43.
Mention any five foreign trade promotion measures and schemes undertaken by the Government of India.
Answer:
Five foreign trade promotion measures and schemes are undertaken by the Government of India to boost up foreign trade are:
(a) Duty drawback scheme.
(b) Advance licence sheme.
(c) Exemption from payment of sales taxes.
(d) Export promotion capital goods scheme.
(e) Export finance at concessional rates of interest.
(f) Export of services.
(g) Export processing zones.
(h) 100 percent export-oriented unit.