diminishing opportunity cost

Complements

must be rising

There are large and small firms in the industry

aggregated

payments made for no return service

Plastic money

1

Revenue Expenditure

Autonomous items

All of the above are true

mixed economy

globalisation

Technological factors

labourers

rural areas

LPG

HDI

(a)   Quantity demanded = 160 - 2p

Quantity supplied = -40 + 2p

Equlibrium is attained at a point where market demand is equal to market supply, i.e.

Quantity demanded = Quantity supplied

Hence,            \(160-2p=-4p+2p\\ 160+40=2p+2p\\ 200=4p,\quad p=\frac { 200 }{ 4 } =50\)

Hence, equilibrium price = Rs.50

Equilibrium quantity will be,

Quantity demanded = Quantity supplied

\(=160-20=160-2\times 50\\ =160-100=Rs.60\)

(b)  At any price below the equilibrium price, there will be excess demand.

Let us take at price Rs.20

At p = Rs.20

    \(Quantity\quad demanded\quad =160=-2p\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =160-2\times 20=160-40\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =Rs.120\\ Quantity\quad supplied\quad =\quad -40\quad +\quad 2p\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =\quad -40\quad +\quad 2\times 20\quad =\quad -40\quad +40\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =0\)

Quantity demanded

> Quantity supplied [ excess demand]

Also, it can be concluded that at Rs.20 there will be no supply of the commodity, hence between 20 < p < 50, there will be excess demand.

(c)  At any price above equilibrium, there will be excess supply.

Let us take at price Rs.80

\(Quantity\quad demanded\quad =160-2p\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =160-2\times 80=160-60\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =0\\ Quantity\quad supplied\quad =-40+2p\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =-40+2\times 80=-40+160\\ \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad =120\)

Quantity demanded

<Quantity supplied [excess supply]

Also, it can be concluded that at p=Rs.80 demand will be zero, hence there will be excess supply between 50 < p < 80.

(a) 'Milk purchased by a tea stall' is intermediate goods. Reason It will be used as a raw material for making tea and involves value addition.
(b) 'Bus purchased by a school' is final good. Reason School purchases bus as long -term durable product and it is an investment for school. It is not for re-sale.
(c) 'Juice purchased by a student from school canteen' is final good. Reason Here juice is purchased for direct satisfaction of student's need, i.e. juice is being consumed by its end user.

Yes, because national disposable income includes some additional factors which national income does not include. These are:
I. Net Indirect Taxes.
II. Net Current Transfers from Abroad
National Disposable Income does not distinguish factor income from transfer income. It can be disposed off by a nation, the way it likes.

Instruments of monetary policy of the central bank are broadly classified as:
(i) Quantitative Instruments
(ii) Qualitative Instruments
(i) Quantitative Instruments  of monetary policy focus on the overall supply of money in the economy. These instruments relate to two policy rates and two policy ratios. The policy rates are (i) Bank rate (ii) Repo rate
The two policy ratios are (i) CRR (ii) SLR.
(ii) Qualitative Instruments of monetary policy are those instruments which focus on selected sectors of the economy. The banks are advised to be selective in offering loans, specially when the economy is gripped in the inflationary spiral.

(i) No, the statement is false. If the ratio of MPCand MPS is 4 : 1, then the value of investment multiplier is 5.
\(MPC=\frac { 4 }{ 5 } =0.8,as\left( \frac { MPC }{ MPS } =\frac { 4 }{ 1 } \right) \\ K=\frac { 1 }{ 1-0.8 } =\frac { 1 }{ 0.2 } =5\)
(ii) No, the statement is false. APCand MPC can have values other than 1.
\(APC=\frac { C }{ Y } \\ and\quad MPC=\frac { \Delta C }{ \Delta Y } \\ and\quad APC=1-APS\\ and\quad MPC=1-MPS\)

The government can through its fiscal tools of taxation and subsidies bring about fair distribution of these essential items by rationing. To further check their artificial scarcity (hoarding and black marketing), it can also use its instrument of 'Moral Suasion', so as to ensure social justice/welfare.

Foreign exchange rate is the price of a foreign currency in terms of demestic currency

The Indian economy was a backward economy at the time of Independence as over 70-75% of the popu.auon was engaged in agriculture. There was a complete absence of any infrastructure for Imparting Knowlededge on technical skills to the labourers. 
The following statistics reveal the extent of backwardness in the economy:
(i) Per Capita Income was low. It was Rs. 1,274 in 1950-51.
(ii) Large scale uncmploy ment and underemployment existed.
(iii) Agricultural sector and industrial sector both were in a dismal condition.

The objectives of IPR-1956 were as follows:
(i) To provide a leading role to public sector.
(ii) To promote regional equality.
(iii) To promote social welfare at the cost of private profits

The examples of five partly privatised PSUs are:
(i) Delhi Vidyut Board
(ii) Videsh Sanchar Nigam Limited
(iii) Steel Authority of India
(iv) Delhi Transport Corporation
(v) National Fertilisers Ltd.

Poverty and unemployment usually go together. Those who fail to get employment become a burden on the limited family income and thus, per capita consumption level decreases.
Decrease in consumption levels further decreases an individual's earning capacity and he is unable to come out of vicious circle of poverty. It has been observed that most of the poor are either unemployed or intermittently employed as casual labourers. Uncertainty of income does not enable them to meet their basic needs and they are thrown into poverty. Therefore, we can safely conclude that a high degree of positive correlation exists between poverty and unemployment.

People need to have information on the cost and benefit of investment in health and education. When they know the benefits of their investment in these two areas, they are willing to make more expenditure. This results in more human capital formation.

Kisan Credit Card (KCC) scheme is an example of credit facility which was introduced by the government in 1998-99.
It facilitates access to credit from commercial banks and Regional Rural Banks. Under the scheme, the eligible farmers are provided with a Kisan Card and passbook from the relevant bank. The farmers can make withdrawals and repayments of cash within the credit limit as specified in the Kisan Credit Card (KCC)

Employment is considered so important in the Indian development policy because of the following reasons:
(i) More employment will lead to higher level of national income since, production and employment are directly related.
(ii) Employment is crucial to removal of poverty

Primary sources for electricity power are unevenly distributed and the generation plants are also unevenly located. Thus, bulky transmission of electric power over long distances becomes necessary. We require grid to synchronise power generation with transmission and distribution of electricity. Grid facilitates economising and increasing reliability. Grid avoids overloading of transmission lines, frequent breakdowns and loss of surplus power.

No, I do not think that it is acceptable. The negative impacts of such a decision far outweights the positive impacts. Deforestation has many adverse effects such as soil erosion, loss of biodiversity, disruption of the climatic cycle, etc. Therefore to benefit a few thousand people, the future of millions should not be compromised upon.

Various factors that led to the rapid growth in economic development in China are given below:
(i) China initiated to implement the economic reforms in 1978 without any compulsion by the World Bank and IMF.
(ii) China established infrastructure in the field of health and education that helped effectively in improving the social and economic indicators.
(iii) China implemented land reforms that increased the productivity.
(iv) There was long existence of decentralised planning.
(v) The size of individual enterprises was kept small.
All the factors mentioned above helped positively towards economic development.

The given statement mayor may not be correct. If the given resources are fully and efficiently used in an economy, the production takes place on the PP curve. But if the resources in the economy are underutilised or inefficiently utilised or both, the production takes place inside the PP curve. The given figure illustrates the point. On point F, and for that matter on any point on the production possibility curve OAB, the resources are fully and efficiently employed. On point U, below the PP curve or any other point, but below the PP curve, the resources are either underutilised or inefficiently utilised or both. Any point below the PP curve thus highlights the problem of unemployment and inefficiency in the economy.

Budget line is the graphical presentation of the different combinations of good, IX and Y which can be purchased with the given money income.
Budget line can shift to the right in case of:
(a) there is a rise in income, with prices remaining unchanged.
(b) Fall in Px' with no change in income and Price of Y.
(c) Fall in Py' with no change in income and Price of X.

TFC remains same as output increases, TVC rises at decreasing rate in the beginning and then rises at increasing rate after a point as output increases TC is equal to TFC at zero level of output. After that TC is parallel to TVC. It increases at decreasing rate in the beginning and then rises at increasing rate after a point, as output increases.

Other things being equal, the increase in demand for a commodity should cause increase in price.But if other things are not equal, then this relationship may not hold true. e.g. if there is an equal increase in supply, the price may not increase. In fact, if the increase in supply is more than increase in demand, the price may fall.

Difference between depreciation and depreciation reserve fund

Sum of value added refers to the value of final goods and services produced in the economy during the period of one year. Net Value Added at Factor Cost implies cost of the factors of production in terms of rent, interest, profit and wages. This is equal to income generated. Hence, the fact that value added is identical with income generated.

Main functions of money are:
(i) Money acts as a medium of exchange. Money serves as a medium of exchange or medium of payments. Money helps in buying and selling of goods. Money acts as an intermediary and facilitates trade. Money has removed the difficulty of 'double coincidence of wants'.
(ii) Unit of value. Money serves as a unit of value or common measure of value, in terms of which the value of all goods and services are measured. This helps in measuring the exchange values of commodities, The price of all the goods and services can be fixed in terms of money and the problem of expressing the value of each commodity in terms of quantities of other goods can be avoided. This function of money facilitates keeping of business accounts.
(iii) Standard of deferred payments. Money also serves as a standard of deferred
payments, i.e., those payments which are made in future. When we borrow money from somebody in the present, we have to return both the principal as well as interest amount at some future date. It is easy to make such payments in terms of money.
(iv) Store of value. Money serves as a store of value. It means that money is an asset and can be stored in future. Under barter system, storing of value (savings) is very difficult in terms of goods, but money has completely solved this problem. Now, savings are done in terms of money. Moreover, goods are perishable, money is not perishable in the same sense. Money occupies less space for storage in comparison with goods. Hence, money is the best form of store of value.

Equilibrium level of income is determined at that point when aggregate demand is equal to aggregate supply. Aggregate Demand represents the total expenditure on final goods and services in an economy. It consists of (a) Consumption expenditure (C) and (b) Investment expenditure (I). Thus, AD = C + I. Aggregate supply refers to the total production of final goods and services in an economy. In other words, it refers to the country's National Product or National Income. Thus, AS = Y. The equilibrium level of income is determined at a point where AD = AS. The given diagram illustrates the idea. In the diagram, AD and AS curves intersect each other at point E, which is the point of equilibrium. The equilibrium level of income is OY.

The government budget is helpful in altering distribution of income in an economy in many ways. Taxes should be made progressive and strict measures should be adopted to check tax evasion by the rich people. Tax base should be broadened and more services should be brought in the tax net of indirect taxes. This will help in reducing disposable income of rich. Expenditure on social sector such as education, health care and housing for the poor should be raised. Expenditure on antipoverty and employment schemes be 'increased so as to bring more people above the poverty line. Subsidies to small scale industries which adopt labour-intensive techniques should be provided so that a large number of employment opportunities are generated. It will lead to an increased in disposable income of poor.

(i) True as accommodating transactions remove both surplus and deficit of Balance of payments account. As outflow causes deficit, which has to fullfilled with inflows.
(ii) False, as export and import of machines are recorded in current account of Balance of payments account.

Under the British rule, basic infrastructure such as railways, ports, water-transport, postage and telegraph developed, but the objective behind the development of infrastructure was not to provide basic amenities to the people but to cater to their colonial interests.
The objectives of the Britishers behind the development of infrastructure were:
(i) Roads were developed for the purpose of mobilising armies and transporting raw materials to the nearest railway station or port.
(ii) Railways was developed to encourage commercialisation of agriculture.
(iii) Postage and telegraph were introduced to enable them to control the large sub-continent.

The main benefits of international or foreign trade are:
(i) International trade encourages specialisation on the basis of comparative advantage. This enables a country to obtain foreign goods at a cheaper rate in context of the domestic resources used.
(ii) An increase in export trade widens the country's total market. Production of more goods will further lower the cost of production, leading to lower cost per unit.
(iii) It widens the scope of industrialisation.
(iv) It encourages competition, leads to innovation and increases capital flows.
(v) International trade acts as an 'engine of growth'. It transmits growth from one part of the world to another. So, the demand in Britain for raw material brought prosperity to Australia, Canada, New Zealand, etc.
(vi) It helps the country to earn valuable foreign exchange.

Liberalisation of trade and investment was initiated to increase international competitiveness of industrial production and also the flow of foreign investments and technology into the economy. Prior to these reforms, in order to protect domestic industries, India was following a regime of quantitative restrictions on imports and restrictions of foreign investments ..
The trade policy reforms aimed at:
(i) dismantling of quantitative restrictions on imports and exports.
(ii) reduction of tariff rates.
(iii) removal of licensing procedures for imports. Liberalisation led to economic growth by increasing the level of investment in the country.

(i) I think that Ramdas Korwa would have benefitted if the well on his field was improved, because it would have ensured year long availability of water and would have helped him to increase his agricultural output.
(ii) No, I don't think that this cost is justified. The road built was not 'Pucca'. Only Lal Mitti was put over a Kutcha road. This clearly indicates that funds were misappropriated.
(iii) The values which I find disturbing are as follows:
(a) Total disregard towards the needs of the poor people
(b) Gross negligence
(c) Corruption

Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices they value.
In human capital view, any investment in education and health is unproductive, if it does not enhance output of goods and services
In the human development perspective, human beings are ends in themselves. So, human capital is a part of human development.

The consumer's income will be equal to the money obtained from budget line equation.
Given, price of good X=Rs.6
Price of good Y=Rs.8
X=6 units, Y=8units, M=P_XX+P_YY
=6X6+8X8=36+64=100
consumers income =Rs.100

(a) Points A, B, C, D and E indicate that there is full utilisation of resources.
(b) Point 'G' inside the curve indicates under-utilization of resources.
(c) Point H outside the curve indicates that the economy cannot produce at any such point above the PPC, the reason being that the fixed resources do not allow to do so.
(d) The economy must increase its resources to attain point H.

(i) The demand of a commodity and the price of its complementary good are inversely related to each other. Suppose car and petrol are complementary goods. A fall in the price of complementary good (say petrol) not only increases the demand for petrol but the demand for car also increases. The demand curve of the commodity shifts to the right.The given diagram shows the effect.In the given diagram, the demand curve of the commodity (say car) is shown byDD curve. It shifts rightwards to D₁D₁ because with the fall in the price of complementary good (say petrol), the demand of the commodity (car) rises from OQ to OQ₁ at the same price OP

(ii) The effect of increase in income ofthe consumer on demand of a commodity depends on the nature of the commodity. A rise in the income of the buyer willlead to a rise in demand for the commodity (normal commodity) as buyer's purchasing capacity will increase. The demand curve of the commodity will shift to the right to D₁D₁. The given diagram shows the effect.

In the diagram, the demand curve of the commodity is shown by DD curve. With the rise in the income of its buyer, the demand of the commodity rises from OQ to OQ₁ at the same price OP.

A rise in income of the buyer will lead to a fall in demand for the inferior commodity and the demand curve will shift to the left to D_oD_o' With the rise in income, the demand for the inferior commodity falls from OQ to OQ₁ at the same price.

Law of Variable Proportion states that if we go on using more and more units of a variable factor along with a fixed factor, the total output initially increases at an increasing rate, after that it increases at diminishing rate and finally it declines
It can be explained through the following three stages:

Stage 1:
(i) TPP increases at an increasing rate.
(ii) MP increases and reaches at its maximum at the end of the stage. • This is also called stage of increasing returns.
Stage 2:
(i) TPP increase but at diminishing rate.
(ii) MPP starts decline but remains positive.
(ii) This stage comes to an end when TPP is maximum and MPP is zero.
Stage 3:
(i) TP starts decline.
(ii) MP becomes negative.
(iii) This is also called stage of decreasing/negative returns.

(a) Profits earned by foreign companies in India This will be included in the estimation of domestic product, as these companies have earned profit in India, i.e. from the domestic territory of India.
(b) Salaries of Indians working in Russian Embassy in India This will not be included in the domestic product of India as Russian Embassy in India is not a part of India's domestic territory.
(c) Profits earned by a branch of State Bank of India in Japan This will not be included in the domestic income of India as it is not located within the domestic territory of India.

'Money is what money does' In the light of this statement, money performs four main functions, namely, medium of exchange, unit of account, store of value and standard of deferred payments. Only through these above' functions, money overcomes the shortcomings of the barter system. Now explaining the above functions briefly:
(i) Medium of exchange: It facilitates buying and selling of goods and services. So, exchange has become very simple and is conducted on a large scale. As a result, the level of production has also substantially risen with the introduction of money.
(ii) Unit of account: Measurement of the value of goods being exchanged was very difficult in barter system. This was because of lack of common unit of account. But now the introduction of money has removed this difficulty and each good/service is valued in terms of money, which acts as a common unit of account.
(iii) Store of Value: Store of value here refers to store of wealth in terms of paper titles like FDR's..... etc. It is a source of future investment for a secure future. All stored wealth should be properly invested and should not remain like idle-saving.
(iv) Standard of deferred payments: Money has made deferred payments (which are payments made in the future) much easier than before. When money is borrowed, it is to be returned with interest, i.e., both the principal as well as interest amount, are to be paid back. This function of money has facilitated borrowing and lending and also led to the emergence of 'financial market'.

The steps involved in the derivation of the saving curve from the consumption
curve are:
(i) We can find savings at different levels of income by taking the vertical distance between the CIS consumption curve (CC)and the 45° line.
(ii) At point B in the diagram income and consumption expenditure are equal Y = C, i.e., savings are zero.
(iii) To the left of point B, CC curve is higher than the 45° line, which denotes income. This implies savings are negative (or Dissaving)to the left of point B, in the diagram.
(iv) To the right of point B, CC curve is lower than the 45° line, this implies C < Y and savings are positive.
(v) By plotting the distance between the CC curve and 45° line at different levels of income just below the upper part we can derive the saving curve SS'. Since the CC curve is a straight line, the derived savings curve \(\rightarrow \) SS, must also be a straight line. For this we are required to locate only 2 points.
(a) Plot a perpendicular <-F)from point Bon the consumption curve, intersecting the OX axis, at point D, which must be on the OX axis, because savings is zero when Y = C.
(b) Plot as on the lower part of OY axis as equal to OC on the Y axis on the upper part. This gives us point S, from where the saving curve will start.
(vi) Joining points Sand Dand extending the straight line upwards we derive the savings curve SDS.

Government Budget is a statement of the estimates of the government's expected receipts and government's expected expenditure during the financial year or fiscal year which runs from 1st April to 31st March. One of the important objective of the government budget is 're-allocation of resources'.
The government of a country, through its budgetary policy, directs the allocation of resources in a manner such that there is a balance between the goals of profit maximisation and social welfare by ensuring that there should be production of necessity goods as well as comfort and luxury goods and the goods which cannot be provided through market mechanism. e.g. Roads, parks, street lights (public goods) etc are provided by the government.
So, the government levies tax on the richer sections of society. The money collected from taxes is spent on providing public goods and giving subsidies on necessary goods to the poorer section of society. So, the government re-allocates resources by collecting taxes from the rich and giving subsidies to the poor, and tries to achieve equitable distribution of income.

The supply of foreign currency is directly related to the price of foreign exchange. When the price of a foreign currency falls, it leads to cheaper imports and costlier export

The exporters are discouraged due to costlier exports. This results lesser inflow or supply of
foreign currency in the economy. As shown in the diagram, the quantity of foreign exchange rises to OQ₂ from OQ₁ due to rise in exchange rate from ORj to OR₂•

Railways was developed by the British East India Company and then by the colonial British Government to achieve the following objectives.
(i) To promote the commercial interset of Britishers Industrialsation in Britain compelled the Britishers to took out for new markets for their finished goods and also identify the countries from where an interrupted supply of raw material could be ensured for their factories.
To achieve these twin objectives, the Britishers introduced the railway in the country. Railways connected the raw material producing areas to the port cities also ensured that the goods imported from Britain were transported to every nook and corner of the country for sale.
(ii) For military motives The Britishers established railways because they felt that it would help in faster movement of troopd and supplies at the time of internal revolution or for defence against external aggression.
(iii) Capital investement Railways was quite successful in Britain and was earning substantial profits. Because of this, the British capitalists wanted to establishe railways in India alsom so that they would be able to earn profits on their investments.
(iv) Political intere: The Britishers believed that the introduction of railways in India would provide political stability to the country.

At the time of Independence, the land tenure system was characterised by intermediaries called zamindars, jagirdars, etc. They collected rent from the actual tiller without contributing towards improvements on the farm. This demotivated the actual tillers and resulted in low productivity in this sector. Due to this reason, there was an urgent need for land reform policy.

The agricultural sector in India adopted the following types of land-reform strategies:
(i) Abolition of intermediaries The zamindari system was abolished and ownership rights were given to the actual tiller of land.
(ii) Regulation of rent Rent was regulated and a maximum limit of 33% of the value of crop was fixed.
(iii) Land ceiling The maximum size of landholding that an agricultural household could own was fixed. The surplus land was acquired after paying compensation and was re-distributed among poor farmers.
(iv) Consolidation of landholding To increase productivity, farmers were given big piece of land in place of his small and fragmented fields.
(v) Cooperative farming Cooperative farming was encouraged to get benefit from the gains of consolidation of holdings.

(i) Differences between strategic and minority sale

(ii) Differences between multi-lateral trade

(iii) Differences between tariff and non-tariff barriers

As a resident of a village, a few measures which I would suggest to alleviate poverty from rural areas are as follows:
(i) Identifying the poorest of the poor who are in the most urgent need of assistance and ensuring that they are benefitted by various programmes.
(ii) Allocation of funds for poverty alleviation programmes must be increased.
(iii) Implementation of poverty alleviation programmes should be done by involving the village panchayat and local people.
(iv) Focus of schemes should be more on providing income generating assets which can provide sustainable income for the poor.
(v) Vocational training should be provided to the youth to enable them to earn their livelihood.
(vi) Improved delivery mechanism should be put in place in schools so that the level of education is brought up to the required standards.
(vii) Credit facilities through banks and micro finance institutions should be provided to the people to save them from indebtedness to the exploitative moneylenders.
(viii) Farmers should be provided land for cultivation and irrigation. Also, warehousing and marketing facilities should be provided to small farmers.
(ix) Targeted Public Distribution System (PDS) should be adopted to provide food security to BPL families.
(x) Committed government officials should be given the responsibility to implement the rural development programmes.

Human capital is believed to be positively related to economic growth though, it is difficult to establish a relation of cause and effect from the growth of human capital to economic growth.
But we can see that human capital formation is related to economic growth in the following manner:
But we can see that human capital formation is related to economic growth in the following manner:
(i) Higher productivity of physical capital Human capital increases productivity of physical capital as specialised and skilled workers can handle machines or techniques better than the unskilled workers. This increased productivity and production leads to economic growth.
(ii) Innovatives skills Human capital facilitates innovation of new methods and techniques of production and this increases the rate of economic growth in the form of increase in GDP.
(iii) Higher rate of participation and equality Human capital formation leads to a higher employment rate. With increase in employment, the productivity rises. Also, increase in employment opportunities increases the level of income and this helps in reducing inequalities of wealth.
(iv) Brings positive outlook The process of human capital formation brings a positive outlook to the society which is different from orthodox and traditional ways of thinking, hence it increases the rate of participation in the workforce leading to an increase in the level of production and GDP.

NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved in rural credit.
The main functions of NABARD are:
(i) To grant long-term loans to the State Government for subscribing to the share capital of cooperative societies.
(ii) To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and primary cooperative societies
(iii) To promote research in agriculture and rural development.
(iv) To serve as a refinancing agency for the institutions providing finance to rural and agricultural development.
(v) To help tenant farmers and small farmers to consolidate their landholdings.

The difference in participation rates is very high between urban and rural women. In urban areas, for every 100 urban females, only about 14 are engaged in some economic activities. In rural areas, for every 100 rural women, about 26 participate in the employment market.
It is common to find that where men are able to earn high incomes, families discourage female members from taking up jobs. Earnings of urban male workers are generally higher than rural, males and so urban families do not want females to work.
Apart from this, many activities of the household in which urban women are engaged, are not recognised as productive work, while women working on farms in the rural' areas are considered a part of the workforce if they are being paid wages in cash or in the form of foodgrains.

Differences between conventional and nonconventional sources of energy

The present thinking with regard to relationship between nature and development is that there should be maximum exploitation of natural resources for development. As a result, people are using nature beyond its carrying capacity. Our present technology is creating a number of environmental problems. A number of non-degradable materials are being produced in present day through the production technology. Following are the some important reasons responsible for the heavy burden on nature:
(i) Rise in human population in underdeveloped countries.
(ii) Affluent consumption style in developed countries.
(iii) Misuse of production technology in almost all the countries and poor planning of development.
As a result of above, there is a reckless use of resources creating negative effects on the society.
The negative effects of development on nature are:
(i) Pollution
(ii) Degradation of resources

China has the second largest GDP (PPP) of $ 15.6 trillion whereas India's GDP (PPP) is $ 6.6 trillion. When many developed countries were finding it difficult to maintain a growth rate of even 5%, China was able to maintain near double-digit growth for more than two decades. Its growth rate in 1980-90 was 10.3% and for 2005-2013, it was 10.2%. In the 1980-90, China was having double-digit growth and India was stuck at 5.7% decadal growth rate.
This rate showed improvement in 2005-2013 at 7.6%, but still it was fan behind China's growth rate. As far as sector-wise contribution to growth is concerned, in 2013, contribution of agriculture to GDP in China was 10% while in India it was 18%.On the other hand, manufacturing contributes the highest to GDP in China at 44%, whereas in India service sector contributes the highest at around 57%. In the last two decades, the growth of agriculture sector has declined in both the countries. In the industrial sector, China has maintained a double-digit growth rate, whereas for India industrial growth rate has declined. In the case of service sector, China has been able to raise its rate of growth in 2005-13, while service sector growth in India has stagnated. China's growth is mainly contributed by the manufacturing sector and India's growth by service sector.