SST Set - 11 (Q.1 to 16) Class 10 Notes | EduRev

Social Science (SST) Class 10 - Model Test Papers

Class 10 : SST Set - 11 (Q.1 to 16) Class 10 Notes | EduRev

The document SST Set - 11 (Q.1 to 16) Class 10 Notes | EduRev is a part of the Class 10 Course Social Science (SST) Class 10 - Model Test Papers.
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Q.1. What are the features of Recardian theory of rent ? What are its defects ?

Ans : The main features of Ricardian Theory of Rent 
(1)  Rent is the factor income of land alone. It is paid due to original and indestructible powers of the soil.
(2)  Rent is a differential surplus. The superior land earns rent. It is calculated from the marginal land which is no rent land.
(3)  Rent does not determine price. It is the price which determines rent.
(4)  Rent is a pure surplus. As such it is an unnecessary payment.
Main defects of Ricardian Theory of Rent are as follows :
(1)  Fertility of the soil is neither Original nor Indestructible : According to Ricardo rent arises because of the original and indestructible powers of the soil. But critics hold that land has no original and indestructible power. However, fertile a land may be originally, but due to constant cultivation its fertility goes on diminishing unless it is recouped by the use of manure and fertilizers. Likewise, by dint of hard labour and proper application of water, fertilizers, good seeds, deep ploughing, even originally barren lands can be converted into lush green fields capable of yielding bumper crops. Thus, powers of land are neither original nor indestructible.
(2) Historically Wrong : Ricardo’s assertion that people select, first of all, the most fertile lands for cultivation, is historically wrong. According to American Economist Carey, it is not true that best grade lands are cultivated first. History of America points out that those lands were brought under cultivation first of all which wear easily accessible, though inferior. The reason being that the best quality of land was covered by thick forests. 
(3) Rent is not paid only for land : According to Ricardo, rent is paid for the use of land alone, but according to the modern economists, like Robinson, rent is paid not only for the use of land but also for the use of all scarce factors of production. It is a kind of surplus. When the supply of a factor falls short of its demand then it begins to earn more than its minimum income. This extra earning is of the nature of rent.
(4) Marginal Land or No-rent Land : Ricardo in his theory stated that every country had such a land that fetched on rent. But critics point out that existence of no-rent land or marginal land in every country is not essential. In a thickly populated country even the most inferior land will earn rent because of its scarcity.
(5) Rent does enter into Price : According to Ricardo rent does not enter into price. In other words, with increase or decrease in rent, there will be no increase or decrease in price rather it is rise or fall in price that increases or decreases rent.But according to critics from the point of view of the industry of economy rent does not enter into price but from the point of view of a firm rent does enter into price.
(6) It does not throw proper light on determination of Rent : According to Briggs and Jordan, the Ricardian theory simply tells a general truth that just as superior good commands a high price, likewise, a more fertile and fetches more rent than less fertile land. But it fails to explain why rent arises at all.

Q.2. What is the law of diminishing returns ? What are the cause of diminishing returen to a factor ?

Ans : Diminishing returns to a factor or law of Diminishing Returns refers to a situation in which total output tends to increase at the diminishing rate when more of the variable factor is combined with the fixed factor (s) of production. In such a situation marginal product of the variable factor must be diminishing. Inversely the marginal cost of production must be increasing.
Causes of Diminishing Returns to a Factor 
Diminishing returns to a factor or the Law of diminishing returns may be explained in terms of the following factors :
(i) Fixity of the Factor : Fixity of the factor(s) is the principal cause that explains the occurrence of the law of diminishing returns. As more and more units of the variable factor continue to be combined with the fixed factor, the latter gets over-utilised. Hence the diminishing returns.
(ii) Imperfect Factor Substitutability : Factors of production are imperfect substitutes of each other. More and more of labour, for example, cannot be continuously used in place of additional capital. Accordingly, diminishing returns to the variable factor becomes inevitable. 
(iii) Poor Co-ordination between the Factors : Continuous increasing application of the variable factor along with fixed factor(s) beyond a point crosses the limit of ideal factor-ratio. This results in poor co-ordination between the fixed and variable factors. The aw of diminishing returns accordingly set in.The co-ordination between the factors may get so distorted that total production starts declining so that MP of the variable factor becomes zero or even negative, as in Figure.
(1) When MP is constant, TP increases at the constant rate. (2) When MP declines, TP increases at the diminishing rate. (3) When MP increases, TP increases at increasing rate.

 

Q.3. What are the causes of increase and decrease fo supply? 

Causes of Increase in Supply

SST Set - 11 (Q.1 to 16) Class 10 Notes | EduRev

Increase in supply occurs due to the following reasons :
(1)  Improvement in technology
(2)  Reduction in the price of factors of production causing fall in cost of production.
(3)  Increase in price of related goods.
(4)  Increase in number of firms in the market.
(5)  When the firm expects a fall in the price of the commodity in near future.
(6)  When goal of the firm shifts from maximisation to sales maximisation. (a) Same price More Quantity : Supposing, when price of Ice Cream is 3 per cup then supply is of 3 cups. If price remains Rs. 3  but quantity supplied increases to 4 cups, then it will be case of increase in supply. Such changes are represented by downward shifts in supply curve.
Causes of Decrease in Supply

SST Set - 11 (Q.1 to 16) Class 10 Notes | EduRev

Decrease in supply occurs due to the following reasons :
(1)  When the technique become obsolete resulting in high cost of production
(2)  When factor increase causing increase in cost of production.
(3)  When prices of related goods fall.
(4)  Decrease in number of firms in the market.
(5)  When the firm expects a rise in commodity price in the near future.
(6)  Objective of the firm shifts from sales maximisation to profit maximisation.

Q.4. Define Deflationary Gap and  Involuntary Unemployment.

Ans : Because, aggregate demand happens to be less than its full employment level, obviously there cannot be full employment in the system, or there must be some unemployment in the system proportionate to the dificiency of aggregate demand. It  is referred to as involuntary unemployment, because forces  the producers to cut their level of output which leads to fall in the level of employment.
Briefly, Deflationary Gap is the synonym of deficiency of demand. Aggregate demand happens to be short of aggregate supply at the full employment level. Consequently prices tends to fall, implying a fall in profits. This forces a cut in the level of output, with an obvious cut in the level of employment.
"Deflationary gap is the shortfall in aggregate demand from level required to maintain full employment equilibrium."

Q.5. What is Unbalanced Budget ? What are its merits and demerits ?

Ans : An unbalaced budget is that   budget in which receipts and expenditures of the Government are not equal. This may be:
(a)  Surplus Budget: This is a budget in which Government receipts are greater than Government expenditures.
Surplus Budget : Estimated Government Receipts  {Estimated Government Expenditures
(b)  Deficit Budget: This is a budget in which Government expenditures are greater than Government receipts.
Deficit Budget: Estimated Government Expenditures  Estimated Government Receipts.
Keynes and  other modern economists stress significance of deficit  budget, highlighting its following merits: 
Merits of a Deficit Budget
(i)  It helps solve the problem of unemployment during depressions.

Demerits of Deficit Budget
(i)  It encourages wasteful expenditure by the Government.
(ii)  It contributes to inflationary pressures in the economy. Particularly when production fails to keep pace with the expenditure.
(iii)  It increases debt burden of the Government.

Q.6. 'Garibi hatao' was the objective of which plan? What did happen to the fifth plan?

Ans : Removal of poverty (Garibi hatao) and attainment of  self-reliance were the two major objectives of the Plan. These objectives were to be achieved through promotion of higher growth rate, better distribution of income, significant step-up in the domestic rate of saving, expansion of employment opportunities and a national minimum needs programme. Formulated against the backdrop of severe inflationary pressure and the Middle East oil price hike since 1973, the Plan also sought to bring inflation under control.
The experience of Fourth Plan  and the high rate of inflation during the launch of Fifth Plan wherein the target growth rates were lowered for various sectors as fixed in earlier Draft Plan. But most of the sectors of economy could not even meet the lowered targets. Except for foodgrains and cotton textiles, almost all other sectors recorded shortfalls. As to the objective of self-reliance there was no significant achievement. Foodgrains along with steel, non-ferrous metals, newsprint, fertilisers and oil and petroleum continued to be imported. Steady rise in international prices of these commodities worsened the situation. The Plan also failed in its objective of solving the problem of unemployment. On the promulgation of emergency in 1975 the Fifth Plan was suspended and replaced by Prime Minister's 20-point programme. The plan was terminated in 1978 (instead of 1979 when the Janata Party came to power).

Q.7.  Write a short note on the following.
Ans : (1) National Rural Employment Programme (NREP)  

(i)  it was launched in 1980 but got an impetus in 1981 when it become a regular part of the Sixth Plan.
(ii)  It aimed at generating additional gainful employment, creating productive community assets to strengthen rural infrastructure and improving nutritional standards.
(iii)  Was implemented as a centrally sponsored scheme on 50:50 sharing basis between the centre and the states.
(iv)  It was implemented through DRDA.
(v)  For the first time Panchayati Raj institutions were involved in the execution of an employment generation programme. 
(vi) In 1989 merged with JRY. 
(2) Rural Landless Employment Guarantee Programme (RLEGP)  

(i)  Was launched on August 15, 1983 as 100% centrally sponsored scheme at the mid-term appraisal of Sixth Plan.
(ii)  Its main objective was improving and expanding employment opportunities for the rural landless by providing guarantee of employment to at least one member of every landless household upto 100 days in a year and creating durable assets to strengthen infrastructure.
(iii)  The programme was continued to be implemented during the Seventh Plan. Indira Awas Yojana launched on October 2, 1985 was a sub scheme of RLEGP.
(iv)  It was merged with JRY in 1989.
(3) Jawahar Rozgar Yojana (JRY)  

(i)  Was started in April 1989 by merging wage employment schemes NREP and RLEGP.
(ii)  Evaluation of previous programme showed that only 55 percent of villages had got benefits of any works programme, therefore JRY targeted to benefit each village.
(iii)  Primary objective is generation of additional gainful employment for rural poor.
(iv)  Secondary objective is creation of a viable rural economic infrastructure.
(v)  Main thrust is on placing funds in the hands of Panchayats so that they are able to evolve their own programmes which will benefit entire village especially the down-trodden.
(vi)  Expenditure is shared by centre and state governments on 80:20 basis.
(vii)  Preference is given to SCs and STs in employment, also 30% reservation for women.
(viii)  Non-wage component restricted to a maximum of 50% of the total allocated funds.
(ix)  Allocation to states being done on the basis of incidence of poverty, direct, disbursement of central assistance to districts.
(x)  Preference is given to works which have potential of maximum direct benefit to poverty groups like Indira Awas Yojana (IAY) and Million Well Scheme (MWE).
(xi)  Higher priority to works for infrastructure of other poverty alleviation programmes like IRDP, DPAP, DDP etc.
(xii)  Development of private land belonging to small and marginal farmers below poverty line, works related to land development, drainage construction are to be under-taken.
In the first three years (by 1992) of its implementation, a total of Rs. 7,697 crore were spent, consequently, 25.5 crore man-days employment was generated. The target of employment generation was almost achieved.
Modifications : Having achieved the target in the first three years of its implementation, the strategy was modified from 1993-94 to stabilise the programme under the new economic policy and for the better implementation of the Yojana during the VIII Plan. Now the  emphasis is on wage level, creation of community and social assets, creation of sustained employment by strengthening economic infrastructure and by enabling assets to be in favour of the rural poor for the accrual of direct and continuous benefits and overall improvement in the quality of life in rural areas. The programme is now being implemented in three streams:
(4)  JRY-First Stream  
The first stream of JRY emphasises on the SC/ST population. The allocation of resources to the states/union territories is based in proportion to their rural poor. Allocation from the states to the districts is made on the index of backwardness based on the SC/ST population in the district. In turn the district administration selects the backward groups and passes on 80 percent of the funds to the Panchayats while the remaining 20 percent is kept for inter-block or inter-village works. There are two sub schemes in the first stream of JRY viz., Indira Awas Yojana and Million Wells Scheme. 
(5) Indira Awas Yojana (IAY) 

(i)  It was launched in 1985-86 as a sub-scheme of RLEGP and continued as a part of Jawahar Rozgar Yojana, since its launching during April 1989.
(ii)  The primary objective of the scheme was to provide free housing to members of SC/ST community and to free subsequently raised to 10% since 1993-94.
(iv)  Its scope has been extended to cover non SC/ST rural poor not exceeding 4% of the total allocation in the year 1988-89.
(6) Million Wells Scheme (MWS)  

(i)  It was launched in the year 1988-89 as a sub-scheme of NREP, RLEGP and is being continued under the JRY.
(ii)  The primary objective of the scheme was to provide open irrigation wells to small and marginal farmers amongst the SC/STs and to free bonded labourers.
(iii)  Its scope has been enlarged to cover non-SC/ST small and marginal framers living below the poverty line.
(7) JRY-Second Stream  

Also known as intensive JRY. Since 1993-94, 20% of the funds under JRY, subject to a minimum of Rs. 700 crore, are being used to intensify JRY of 120 backward districts in different states in the country where there is major concentration of unemployment and underemployment.
(i)  The funds under the scheme are allocated through DRDAs.
(ii)  The DRDAs is identify the areas of unemployment and underemployment within a district and take up work in the area from the basket prescribed under the JRY.
(iii)  The basket of works include construction of all-weather roads, minor irrigation works, water harvesting structures, waste-land development, farm forestry etc.
(iv)  Emphasis has been on watershed based development since 1994-95 to give impetus to the efforts on drought proofing, treatment of drylands and reclamation of waste-lands.
(v)  50 percent of the funds are being ear-marked for the Watershed Development Plan.
(8) JRY-Third Stream  

(i)  In a bid to prevent migration of labour 5 percent of allocated fund under JRY, subject to a maximum of Rs. 75 crore is kept for taking up special and innovative projects.
(ii)  Schemes which are essential for the main objectives of JRY such as Operation Black Board are included in the third stream of JRY. Side by side many employment generating schemes such as Area Officers Scheme, Prime Minister's Rozgar Yojana, Employment Assurance Scheme etc., have also been launched from time to time—all as a part of Jawahar Rozgar Yojana.
(9) Employment Assurance Scheme (EAS)

(i)  It was launched on October 2, 1993, in 1778 most backward blocks of the country.
(ii)  In 1994-95 the scope of the scheme was extended to 2447 blocks mainly situated in the drought prone areas, desert areas, tribal and hill areas.
(iii)  It aims at providing gainful employment during the lean agricultural season in form of manual work to persons above 18 years and below 60 years.
(iv)  Expenditure is shared by centre and state in the ratio of 80:20.
(v)  A maximum of two adults per family will be provided assured employment for 100 days to unskilled manual work.
(vi)  Assistance under the scheme is directly released to DRDAs for direct and quick implementation of the projects under the scheme.
(vii)  Contractors are sidelined from the execution of all works as these are directly executed by the respective implementing agencies.
(viii)  All works started under EAS should be labour intensive and should contribute to sustained employment generation and development of core infrastructure.
(ix)  Persons seeking employment under the scheme must register themselves in the village Panchayats.
(x)  The wages paid to workers under EAS should be the minimum agricultural wages for unskilled labour as prescribed by the concerned state.
(xi)  A part of the wage may be paid in the form of foodgrains, not exceeding 2 kgs per man-day and not exceeding 50% of wages in cost.
(10)  P.M.'s Rozgar Yojana (PMRY)

(i)  It was announced in August 1993 and launched from October 2, 1993.
(ii)  Aims at providing self employment to educated unemployed youths.
(iii)  Extended to cover the whole country from 1994-95 onwards.
(iv)  Intended to provide employment to one million educated unemployed youths by setting up 7 lakh microenterprises by educated unemployed youths.
(v)  Seeks to associate reputed NGOs.
(vi)  The eligibility for this scheme is : age group 18-35 years; matric (pass/fail), ITI  passed or undergone govt. sponsored technical course for a minimum of 6 months; permanent resident of the area for at least 3 years; family income must be less than Rs. 24000 per annum.
(vii)  Preference is given to weaker sections including women, SC and ST are provided a reservation of 22.5% and another 27% for OBCs.
(viii)  A high level committee under the Secretary, Small Scale Industries and Agro and Rural Industries is constantly reviewing and monitoring the scheme.
(11) Drought Prone Area Development Programme

(i)  It was started in 1973 to restrict damage to rainfed areas due to drought.
(ii)  It aimed at:-
[  promotion of productive dryland agriculture with suitable cropping pattern.
[  soil and moisture conservation.
[  development and suitable cropping pattern.
[  soil and moisture conservation.
[  development and productive use of water resources.
[  afforestation including development of fodder resources.
[  other activities like horticulture and sericulture being encouraged.
(iii)  It was started in 615 blocks of 91 districts in 13 states.
(iv)  Under DPAP 4.7 lakh hectare area has been covered under land development, 3.47 lakh hectare under forestry and 2.09 lakh hectare under water resources.
(12) Swarana Jayanti Shahari Rozgar Yojana (Golden Jublee Urban Employment Scheme)

In September 1997, the government merged the three anti-poverty programmes for urban areas — Nehru Rozgar Yojana, Urban Basic Services for the Poor and the Prime Minister's Integrated Urban Poverty Eradication Programme — into one single scheme. The new scheme is called the 'Swarna Jayanti Shahari Rozgar Yojana' (Golden Jubilee Urban Employment Scheme). The new scheme comes into effect immediately, even as the states have been requested to phase out the existing schemes by November 30, 1997 by finalising all pending cases.
The proposed new scheme combines the objectives of the three schemes. It provides for setting up of self-employment ventures by the urban poor all over the country, and also for wage employment to the needy urban poor in all towns with less than five lakh population.
(13)  Rural Group Life Insurance Scheme (RGLIS)

(i)  It was launched on August, 15, 1995.
(ii)  The objective of the scheme is to promote social insurance in the rural areas with the active involvement of the Panchayats and to partly alleviate the distress caused by the death of the bread-earner among the rural poor.
(iii)  The scheme is being administrated by Life Insurance Corporation (LIC) of India and implemented by the Panchayats in the rural areas for the age group of 20-60 years.
(iv)  Under this new scheme a life cover of Rs. 5,000 is provided to the rural population for an annual premium of Rs. 60-70 depending upon the age of entry in the scheme.
(14) Mid-Day Meal Programme

(i)  It was launched by central government on August 15, 1995.
(ii)  It is to help in universalisation of primary education by increased enrolment, retention and attendance and will also improve the nutritional status of children.
(iii)  The programme is to cover the entire country in phased manner.
(iv)  All government, local bodies and government-aided primary schools numbering over 5,22,000 will be under its coverage in a 3-year period.
(v)  The programme will cost Rs. 2,226 crore, when coverage is full. In the first year the budget is Rs. 612 crore and in the second year Rs. 1,474 crore.
(vi)  The programme is to be implemented through the panchyats and nagarpalikas.
(vii)  The local bodies have the flexibility to decide the type of food to be provided. While in Delhi and Chandigarh, processed food is distributed, other states (Orissa, Gujarat, Haryana, Jammu and Kashmir and Pondicherry) distribute foodrains.
(15) Council for Advancement of Peoples Action and Rural Technology (CAPART)

CAPART was registered on September 1, 1986 under the Societies Registration Act., 1960, with the merger of people's Action for Development India (PADI) and Council for Advancement of Rural Technology (CART). Its headquarters is in New Delhi. It aims at encouraging, promoting and assisting voluntary action for enhancement of rural prosperity. In pursuance of these objectives, CAPART makes available financial assistance to voluntary organisations under the following schemes :

(i)  Promotion of voluntary action in rural development;
(ii)  Development of DWRCA;
(iii)  accelerated Rural Water supply Programmes (ARWSP);
(iv)  Central Rural Sanitation Programme (CRSP);
(v)  IRDP; 
(vi)  Organisation of Beneficiaries of Anti-Poverty Programme;
(vii)  JRY; and
(viii)  Advancement of Rural Technology Scheme (ARTS).
The funds of the CAPART comprise mainly grants by Ministry of Rural Development. The society can, however, obtain grants from various Central and State Government departments and also accept donations and contributions from other sources.
(16) Mahila Samridhi Yojana (MSY)

(i)  It was launched in October 1993.
(ii)  It is a scheme for encouraging saving habits among rural women leading to their economic independence.
(iii)  Encourages adult women to open account with a   minimum of Rs. 4, further deposits in the multiple of 4 are made, maximum deposit should not exceed Rs. 300 any time with one year lock-in period to which government participation is limited to Rs. 75 in a year. Account holder can withdraw money twice in a calendar year. Deposits are made in the post offices.
(iv)  A monitoring groups has been set up in NPC.
(v)  Review committees are being set up and involvement of NGO's is being sought at the state, district and divisional levels.
(17) Rashtriya Mahila Kosh (RMK)

(i)  A National Credit Fund for Women was started in 1993 as an initiative on the part of the Department of Women and Child Development.
(ii)  The kosh aims at reaching the poor and assetless women are in need of credit but cannot reach the formal banking or credit service.
(iii)  RMK provides credit to poor women both in rural and urban areas in the informal sector through the intermediation of non-governmental organisations and other women's organisations like special help groups in a simple and flexible manner at reasonable rates of interest.
(iv)  The kosh supports short term loans upto Rs. 2,500-and medium term loans upto Rs. 5,000/- per borrower.
(18) Support Training and Employment Projects (STEP)

It aims to upgrade the skills of poor and assetless women, mobilise them and provide employment on a sustainable basis in fields such as agriculture, dairying, fisheries, sericulture, handlooms, handicrafts etc. In addition to training and employment support, the three special features included in this programme are 'Gender Sensitisation', 'Women in Development Inputs, and, provision of 'Support  Services'.
(19) Training-cum-Employment-cum Production Centres

The programme extends financial assistance to public sector undertakings, corporations/autonomous bodies/voluntary organisations to train women in non-traditional sectors and provide employment. Priority is given for training in modern and upcoming trades like electronics, watch assembly, computer programming etc.
(20) Socio-Economic programme (SEP)

It aims at economic empowerment of poor and needy women such as destitute, widows, deserted, economically backward and the handicapped. The programme, implemented through the Central Social Welfare Board, provides  'Work and Wage' for such women. Through this programme, the Board endeavours to provide them facilities to engage themselves in full time or part-time work to earn wage to supplement the meager income of their families.
(21) Indira Mahila Yojana (IMY)

(i)  it was launched in August 1995, seeking to generate awareness, income generation and convergence of services for rural women.
(ii)  Initially it aimed to cover 200 blocks on pilot basis.
(iii)  It emphasises on the constitution of Indira Mahila Block Societies (IMBS) at block level and Indira Mahila kendras at Aganwadi level and Women's Self-Help Groups under every Aganwadi. The group may involve in thrift activity by collecting funds from the members. The fund collected over a period can be revolved amongst the member as a financial support for the expansion of their income generation activities or also for starting of a new activity. The group once stablished can also approach state and national level lending institutions for credit support.
(iv)  Government provides financial support of Rs. 5,000 to each Mahila kendra.
(v)  Rashtriya Mahila Kosh, a national level lending institution has also decided to provide financial support to IMBS in terms of interest free loans for the formation and stablisation of women's self-help groups. ee

 

Q.8. What is Inflation? Define the different types of inflation?

Ans : A persistent rise in general level of prices is known as inflation. It is usually measured as rate per cent per unit time, say, a year or a month. Inflation occurs when currency of a country exceeds the production. Existence and availability of surplus currency raises the general price level and lowers the purchasing power of the currency. So inflation results in the depreciation in the value of money.
The two alarming features of inflation are: (i) acceleration in the rate of inflation over time, and (ii) high rate of unemployment in the face of high rate of inflation—also termed as stagflation and slumpfation—which has posed serious challenge.
Inflation, based on degrees of severity, is classified into various types. 
The initial stage of inflation is generally slow and this is actually an ideal time to check it. Such an inflation with a slow rate of price rise (a low single digit inflation rate) is called crawling or creeping inflation. Such an inflation may not be considered undesirable particularly when it is after depression.
In the course of time, the process gathers strength and it enters the intermediate stage. In its earlier part it may be called trotting or walking inflation. Apart from the speed of the price increase, there is an increase in the effective demand, rate of investments and money income.
Trotting inflation may soon assume the shape of running inflation. The output of the economy fails to respond to the quick rise of money income and aggregate demand. Along with the greater rise due to the expectation of higher rise still, there is a tendency of hoarding and stock piling by the business community. It curtails the available output in the market, so the price level is pushed further. Running inflation now becomes galloping inflation (inflation rises at double or triple digit rates). The authorities are forced to meet their deficits by resorting to deficit financing.
The last stage is the run away inflation known as hyper inflation (prices rise at a thousand million or trillion percent annually). It is the last stage of inflation. At this stage, the speed of the general rise in the price level becomes extremely high. Planning goes out of context in such a peculiar situation. It leads to the collapse of the monetary and financial structure.
Inflation in India is generally caused by three factors: (i) those which induce an increase in demand—called demand pull inflation; (ii) those which produce a decrease in supply—called cost push inflation; and (iii) structural rigidities.

 

Q.9. What are the causes of Inflation in India?

Ans : (i) Increase in Money Supply — Increased liquidity is needed to finance the expanding volume of transactions in the economy and hence is a necessary condition of growth. But when liquidity increased at a rate faster than one desired by increasing transactions, it leads to inflation. In India, the supply of money has been increasing continuously. Though it has been mainly used for monetising the transactions, a large part of it has proven inflationary.
(ii) Increase in Public Expenditure — Pubic expenditure in India has risen steadily. Though some increase in public expenditure is inevitable but the way it has increased in expenditure raises the productive capacity of economy and thus contributes to an increase in national product. The expenditure by government of non-development services, by putting income and purchasing power into hands of its employees, creates demand for goods and services without any corresponding increase in the supply. This creates an imbalance and thus leads to inflation. In India 43  percent of govbernment expenditure is on non-.developmental activities. It is now believed that reckless increase in government expenditure, particularly on account of large interest payments and various types of unwarranted subsidies has led to large budget deficit and consequently to inflationary pressures.
(iii) Deficit Financing — When government is unable to raise adequate revenue for its expenditure it resorts to borrowing of funds from banking system for meeting its deficit. This technique of resource mobilisation is called deficit financing. Deficit financing in India has been resorted to on a large scale to meet the increasing government expenditure. The amount of deficit financing which the government has actually done in the past has led to inflationary pressures.
(iv) Foreign Exchange Reserves — Large foreign exchange reserves of India particularly due to large foreign inward remittances as a result of large scale employment of workers in gulf countries, special schemes and facilities extended to NRIs coupled with other supporting circumstances like earnings on account of invisibles, expansion in money supply and decline in national income has resulted into inflation.
Factors on Supply Side
(i) Rise in Administered Prices — The price level of a number of commodities, mostly produced in public sector, are administrated by the government. The government has been frequently raising the prices in order to cover up losses in the public sector which often arises due to low productivity, inefficiency and defective management. The government should in fact, reduce costs by improving the efficiency. But as this requires lot of efforts, the government finds it easy to raise the administered prices. This results in cost-push inflation. Recently government has increased administered prices of petrol, petroleum products, steel and iron, electricity and fertilisers at regular intervals. Although according to government these were necessary but they have caused inflationary pressures.
(ii) Erratic Agricultural Growth — There has been considerable development in agricultural sector in India and as a result foodgrains output has increased at a rate 2.9 percent per annum — distinctly higher than the rate of population growth. As the Indian agriculture is mainly dependent on monsoon, therefore crop failures due to droughts have been a regular feature in this country. Scarcity of foodgrains in these particular years, has not only resulted in increase in food prices but also in general price level. Industrial workers, under pressure of rising prices of foodgrains force their employers to increase their wages consequently leading to rise in prices of industrial goods also during the period of low agriculture production.

 

Q.10. What are the main points in the Constitution (Seventieth Amendment) Act, 1992

Ans : While considering the (Seventy-fourth Amendment) Bill, 1991 and the Government of National Capital Territorial Bill, 1991 views were expressed in both the houses of Parliament in favour of including also the elected members of the legislative assemblies of union territories in the electoral college for the election of the President under Article 54 of the Constitution.
Before this act Article 54 relating to the election of the President provided for an electoral college consisting of only the elected Members of Parliament as well as the legislative assemblies of the states (not of union territories). Similarly, Article 55 providing for the manner of such election also speaks of legislative assemblies of states.
Accordingly, an Explanation was inserted in Article 54 to provide that reference to 'State' in Article 54 and 55 would include the National Capital Territory of Delhi and the Union Territory of Pondicherry for constituting the electoral college for election of the President. This would enable the elected members  of the Legislative Assembly created for the Union Territory of Pondicherry under the provisions of Article 239A and of the proposed Legislative Assembly of the National Capital Territory of Delhi under Article 239A to be included in the electoral college.

 

Q.11. Discuss the Constitution (Eighty-sixth Amendment) Act, 2002

Ans : The Act deals with insertion of a new article 21A after article 21. The new article 21A deals with Right to Education –“The state  shall provide free and compulsory education to all children of the age of six to fourteen years in such manner as the State may, by law, determine.”
Substitution of new Article for Article 45. For Article 45 of the Constitution, the following article shall be substituted, namely, Provision for early childhood care and education to children below the age of six years. Article 45: “The State shall endeavour to provide early childhood care and education for all children until they complete the age of six years. ”
Article 51A of the Constitution was amended and a new clause (k) was added after clause (j), namely, (k) who is a parent or guardian to provide opportunities for education to his child or, as the case may be, ward between the age of six and fourteen yeas.”

 

Q.12.  The Constitution (Ninety-first Amendment) Act, 2003 is a bold step in the direction of good governance. Discuss.

Ans :  In Article 75 of the Constitution, after clause (1), the following clause shall be inserted, namely : 
(1A) The total number of Ministers, including the Prime Minister, in the Council of Ministers shall not exceed fifteen per cent of the total number of members of the House of the People.
(1B) A member of either House of Parliament belonging to any political party who is disqualified for being a member of that House under paragraph 2 of the Tenth Schedule shall also be disqualified to be appointed as a Minister under clause (1) for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or where he contests any election to either House of Parliament  before the expiry of such period, till the date on which he is declared elected, whichever is earlier”
In Article 164 of the Constitution, after clause (i), the following clauses shall be inserted, namely : 
“(1A) the total number of Ministers, including the Chief Minister, in the Council of Ministers in a State shall not exceed fifteen per cent of the total number of members of the Legislative Assembly of that State:
Provided that the number of Ministers, including the Chief Minister, in a State shall not be less than twelve:
Provided further that where the total number of Ministers, including the chief Ministers, in the Council of Ministers in any State at the commencement of the Constitution (Ninety-first Amendment) Act, 2003 exceeds the said fifteen per cent or the number specified in the first proviso, as the case may be, then, the total number of Ministers in that State shall be brought in conformity with the provisions of this clause within six months from such date as the President may by public notification appoint.
(1B) A member of the Legislative Assembly of a State or either House of the Legislature of a State having Legislative Council beloging to any political party who is disqualified for being a member of that House under paragraph 2 of the Tenth Schedule shall also be disqualified to be appointed as a Minister under clause (1) for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or where he contests any election to the Legislative assembly of a State or either House of the Legislature of a State having Legislative council, as the case may be, before the expiry of such period, till the date on which he is declared elected, whichever is earlier”
After Article 361 A of the Constitution, the following article shall be inserted, namely : 
316B. A member of a House belonging to any political party who is disqualified for being a member of the House under paragraph 2 of the Tenth Schedule shall also be disqualified to hold any remunerative political post for duration of the period commencing from the date of his disqualification till the date on which the term of his office as such member would expire or till the date on which he contests an election  to a House and is declared elected, whichever is earlier. 
Explanation : For the purpose of this Article, —
(a) the expression “House” has the meaning assigned to it is clause (a) of paragraph 1 of the Tenth Schedule : 
(b) the expression “ remunerative political post” means any office — (i) under the Government of India or the Government of a State where the salary or remuneration for such office is paid out of the public revenue of the Government of India or the Government of the State, as the case may be, or (ii) under a body, whether incorporated or not, which is wholly or partially owned by the Government of India or the Government of a State and the salary or remuneration for such office is paid by such body, expect where such salary or remuneration paid is compensatory in nature.”
In the Tenth Schedule to the Constitution, (a) in paragraph, 1, in clause (b), the words and figure “paragraph 3 or, as the case may be,” shall be omitted; (b) in paragraph 2, in subparagraph (1), for the words and figures “paragraph 3, 4 and 5”, the words and figures “paragraphs 4 and 5” shall be substituted; (c) paragraph 3 shall be omitted.

 

Q.13. Discuss the different writs issued by the courts.

Ans :  Habeas Corpus
The words ‘habeas corpus’ literally means, “to have a body”. The writ is a remedy against unlawful imprisonment or confinement and can be issued both to an official or private person who has another person in his custody. The disobedience of the writ is met with punishment for contempt to court.
Mandamus
The word ‘Mandamus’ literally means a command. If a public official refuses to do his duty then this writ can be issued. It can also be issued to compel a court or judicial tribunal to exercise its jurisdiction when it has refused to exercise it. In the case of Fundamental Right, the ideal case for the issue of the writ of Mandamus will arise when a public officer or a Government has done some act which violates the fundamental right of a person. The writ of ‘mandamus’ then will restrain the public officer or the Government from enforcing that order.
Prohibition
The writ of prohibition differ from the writ of mandamus in that while mandamus commands activity, prohibition commands inactivity. This writ is issued by the SC or a HC to an inferior court forbidding the latter to continue proceedings there in excess of its jurisdiction or to usurp a jurisdiction with which it is not legally vested. Thus, writ of prohibition is issued only against judicial or quasi-judicial authorities.
Certiorary
The writ of certiorary is also issued only against judicial or quasi-judicial authority. It differs with the writ of prohibition in that while prohibition is available at an earlier stage, certiorary is available at a later stage. Thus, the writ of certiorary is issued to quash the order of a judicial or quasi-judicial authorities, if the order is beyond its jurisdiction or the order is unconstitutional.
Quo Warranto
The writ of Quo Warranto guards public offices against unlawful usurpation. It denotes a proceeding whereby the court enquires into the legality of the claim which a party asserts to a public office, and to oust him from its enjoyment if the claim be not well founded.
­ All the writs can be issued either by Supreme Court or a High Court or any other court empowered by either of them.
­ However, no other court has been empowered as yet.

 

Q.14. What concrete steps could be taken to root out the communal vices?

Ans : The efforts to separate religion and politics in India have achieved only limited success. Communal stereotypes, images and prejudices permeate the thinking of many people, including the political elite. This has deleterious effects even in normal times.
The task of combating communalism is not possible only by government's efforts and administrative machinery. It should involve the political parties, voluntary organisations and every type of pressure group. The mass media and the press and the educational system should be used in the campaign to root out the communal virus.
The following concrete steps would help:
(i)  Economic development coupled with reduction in glaring inequalities between different communities and sectors of society. 
(ii)  Action against political parties and other organisations that practise or propagate communalism.
(iii) Removal of communal orientation from the educational system, and   particularly textbooks.
(iv)  Quick resolution of disputes/issues that can give rise to communal tension.
(v)  Pinpointing responsibility of administrative and police officials for dealing with communal violence and its threat.
(vi)  Special riot forces like the present Rapid Action Force (RAF) should be created in all states and equipped with modern weaponry.
(vii)  Promotion of secular values and approach through the mass media, voluntary organisations ect.

 

Q.15. Do you favour Presidential System of Government?

Ans : After the virtual end of the one-party dominance  at the centre, a debate is going on to change over to Presidential system of government. Following features favour Presidential system.
1.  The nation will no longer face a hung situation for its governance. The President will last for full term and the government will be stable.
2.  The President will have the distinct advantage of choosing his ministerial team from among the best available without being subjected to the pulls and pressures of elected representatives.
3.  The President being directly elected by the people will be responsible to them
4.  The people's power, concentrated in the hands of the individual of great ability as President and exercised through the able cabinet members, will come into playto develop resources, igenerate income and utilise the same in the most cost-effective manner in result oriented projects. This will enhance the quality of life of the people.
5.  It will be a President's Cabinet of hand-picked men whom he can hire and fire: it will be compact and dynamic, with quality performance being its hallmark.
6.  There may be no need to have a Prime Minister thus avoiding two centres of power.
7.  The Presidential form will separate legislators from executives and the clamour for position in the Ministry by the legislators often making the Cabinet unwieldy will not arise.
8.  The Presidential system will induce parties to nominate candidates of proven merit, ability and track record.
9.  Firmness in decision-making and its meticulous implementation will be the salient features of the government's functioning.
10.  Resources now wasted on unproductive pursuits such as populist programmes, in the unnecessary foreign and domestic air travels of Ministers and bureaucrats, functions and meeting will be saved.
11.  The number of parties and candidates will be reduced. Non-serious candidates will not enter the picture.
12.  Elections will be held at regular intervals and there will be no need for mid-term polls.

Q.16. The Presidential System of Government is full of demerits. Discuss.

Ans : A political system on merits alone is not enough to determine its suitability for a country's present needs and requirements. Unless all the social, economic, political and cultural factors are brought within the compass of constitutional change, a mere shift from one system to another is not going to suffice. Moreover, it is not guaranteed that under presidential system, the ministers shall be appointed only on merits because the ideological considerations are bound to influence the decisions. There may be susceptibility to sycophancy. The majority of voters in India are illiterate and will not be able to know the capacity of the Presidential candidate. They will be exploited by dishonest politicians.
Presidential form will further dilute federalism and will entail greater centralisation of power. Extreme centralisation of power leads to a lack of accountability and gives rise to arrogance which, in turn, breeds irresponsibility. Power is not shared and its excesses are not subject to checks and balances. Central authoritarianism can lead to fragmentation. Pakistan is the glaring example before us. Bangladesh and Sri Lanka too came close to disintegration during such regimes. We have the examples of Idi Amin, President of Uganda: Zia-ul-Haq, President of Pakistan: Ferdinand Marcos, President of the Philippines: who did not admit office on the basis of election results. All of them were removed from the scene either by death or by a coup. Marcos amassed wealth, Nixon was embroiled in Watergate scandal, John F. Kennedy's decision to invade Cuba drew flank. During the period of Lyndon Johnson another invasion was attempted on Vietnam, and this had happened by bypassing Parliament. On the other hand, it is in our parliamentary system that Indira Gandhi was ousted from power in 1977 and voted back in 1980.
History is replete with instances which in almost all countries (barring the US and France) saw the presidential systems degenerate into dictatorship, while the Third World has had to face the worst forms of tyranny in the name of Presidential system.
This is, however, not the whole story so far as India and its politicians are concerned. The real concern on the politicians and parties who oppose the presidential system is that it will spell the doom on their bargaining power in grabbing the loaves and fishes of political power. Yes it will do so, and that is a very good reason to change the existing dispensation. By eliminating the need for majority support in Parliament, the Presidential system will put an end to the prevailing cattle-fair politics and thus ensure governmental stability.

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