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12th Standard English Medium Economics Subject Economics of Development and Planning Creative 2 Mark Questions with Solution Part - II updated Creative Questions

Published on: 13/05/2022

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Std: 12th Standard - Economics

chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

Differentiate democratic plan with totalitarian plan.

Write a note on the supply side vicious circle of poverty.

Draw the The Vicious Circle of Poverty

Comment - “Non- Economic Factors” of economic development?

Write the meaning of the term “Underdevelopment”

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Answers Key:

Generic 2

5 x 2 = 10

Democratic Plan	Totalitarian Plan
Democratic planning implies planning within democracy.	Under totalitarian planning, there is central control and direction of all economic activities in accordance with a single plan
People are associated at every step in the formulation and implementation of the plan.	In authoritarian planning, the planning authority is the supreme body.

(i) On the supply side, the low level of real income means low savings.
(ii) The low level of saving leads to low investment and to deficiency of capital.
(iii) The deficiency of capital, in turn, leads to low levels of productivity and back to low income.
(iv) Low Income ⟶ Low Saving ⟶ Low Investment ⟶ Low Production ⟶ Low Income

(i) Economic Development has much to do with human endowments, social attitudes, political conditions, and historical accidents.
(ii) Capital is a necessary but not a sufficient condition of progress

The term underdevelopment refers to that state of an economy where levels of living of masses are extremely low due to very low levels of Percapita income, resulting from low levels of productivity and high growth rate of population.