Test: Development Experience Of India - 2 - Commerce MCQ

Infant mortality rate is as low as 30 per thousand in China compared with 63 per thousand in India, because of better infrastructure and higher health status of its people.

False Statement Regarding China:
Population is very small
- China has the largest population in the world, with over 1.4 billion people.
- It is the most populous country on Earth, accounting for approximately 18% of the global population.
True Statements Regarding China:
Density of population is lowest
- China has a high population density, especially in urban areas.
- The country has numerous megacities with millions of residents, contributing to a significant population concentration.
Sex ratio is biased and low
- China has a skewed sex ratio due to the historical preference for male children and the implementation of the one-child policy.
- The preference for male heirs has led to higher rates of female infanticide and sex-selective abortions, resulting in a lower sex ratio.
Fertility rate is low
- China's fertility rate has declined significantly over the years.
- The one-child policy, which was in place from 1979 to 2015, aimed to limit population growth and resulted in a lower fertility rate.
- However, even after the policy was relaxed, the fertility rate remained relatively low due to factors such as urbanization, changing societal norms, and economic considerations.
Overall, the false statement is that "Population is very small" in China.

The secondary sector covers all those activities consisting in varying degrees of processing of raw materials (manufacturing, construction industries).

To determine the country with the highest fertility rate, let's analyze the given options.
A: China
- China has implemented a strict one-child policy for several decades, which significantly reduced its fertility rate. Therefore, it is unlikely to have the highest fertility rate among the given options.
B: India
- India has a relatively high fertility rate, but it is not the highest in the world.
C: Pakistan
- Pakistan has a higher fertility rate compared to China and India. It is known to have one of the highest fertility rates globally, primarily due to cultural and social factors that encourage larger families.
D: None
- Since Pakistan has a higher fertility rate than the other options, the correct answer is D: None.
In summary, Pakistan has the highest fertility rate among the given options.

Classification of an Economy
An economy can be classified based on the occupations within it. The most common classification system divides the economy into three sectors: the primary sector, the secondary sector, and the tertiary sector.
1. Primary Sector:
- The primary sector includes activities that involve the extraction and production of raw materials.
- It encompasses industries such as agriculture, fishing, mining, and forestry.
- Workers in this sector are directly involved in the production of natural resources.
2. Secondary Sector:
- The secondary sector includes activities that involve the processing and manufacturing of raw materials.
- It encompasses industries such as manufacturing, construction, and utilities.
- Workers in this sector transform raw materials into finished products.
3. Tertiary Sector:
- The tertiary sector includes activities that involve the provision of services.
- It encompasses industries such as retail, healthcare, education, finance, and hospitality.
- Workers in this sector provide services to consumers and businesses.
Other Possible Classifications:
While the primary, secondary, and tertiary sectors are the most commonly used classifications, there are other ways to classify an economy as well. These may include:
- Quaternary Sector: This sector involves activities related to information technology, research, development, and intellectual services.
- Quinary Sector: This sector includes activities related to high-level decision-making and policymaking in areas such as government, education, and healthcare.
Conclusion:
In summary, an economy can be classified into different sectors based on the type of occupations within it. The primary sector involves the extraction and production of raw materials, the secondary sector involves processing and manufacturing, and the tertiary sector involves the provision of services. Other classifications, such as the quaternary and quinary sectors, may also be considered depending on the context.

The human development index (HDI) is a composite index that measures the development of a country. The HDI is based on qualitative and quantitative data:
- life expectancy at birth (which gives an idea of the health status of the population);
- the level of education measured by mean years of schooling and adult literacy rate;
- the GDP per capita in purchasing power parity (PPP), giving an indication of the mean standard of living in the country.

Percentage of Workforce Engaged in Agriculture in China
- The percentage of the workforce engaged in agriculture in China is an important indicator of the country's economic development and modernization.
- It is crucial to have an understanding of this percentage to assess the level of industrialization and urbanization in China.
- The correct answer to this question is 35% (Option B).
Explanation:
- China has a large population, and historically, agriculture has played a significant role in the country's economy. However, with rapid industrialization and urbanization, the proportion of the workforce engaged in agriculture has been declining.
- As of recent data, approximately 35% of the workforce in China is engaged in agriculture.
- This percentage indicates that China has made significant progress in transitioning from an agrarian society to a more industrialized and urbanized one.
- The decline in the agricultural workforce is a result of various factors, such as technological advancements, increased productivity, and the growth of non-agricultural sectors.
- The shift towards a more industrial and service-oriented economy has led to an increase in employment opportunities outside of agriculture, attracting workers to other sectors.
- The decrease in the agricultural workforce has also been accompanied by improvements in agricultural productivity, allowing the country to meet its food demands with a smaller labor force.
- It is important to note that while the percentage of the workforce engaged in agriculture has decreased, agriculture still remains a crucial sector in China, contributing to food security and rural development.
- The government of China has implemented various policies and initiatives to support the agricultural sector, ensuring sustainable growth and development.

Introduction:
In Pakistan, various reforms were introduced as a response to external pressures. These reforms aimed to address economic challenges and promote sustainable development. The main pressure for these reforms came from two international financial institutions, the International Monetary Fund (IMF) and the World Bank.
Pressure from the IMF:
- The IMF is an international organization that provides financial assistance and policy advice to member countries.
- Pakistan has faced numerous economic challenges, including fiscal deficits, balance of payments issues, and a high debt burden.
- To address these challenges and stabilize the economy, Pakistan sought financial support from the IMF.
- The IMF provided loans to Pakistan under various programs, such as the Extended Fund Facility (EFF) and the Stand-By Arrangement (SBA).
- These loans came with conditionalities, requiring Pakistan to implement economic reforms, including fiscal consolidation, structural adjustments, and governance improvements.
Pressure from the World Bank:
- The World Bank is an international financial institution that provides loans and grants for development projects.
- Pakistan has received significant financial support from the World Bank for various development initiatives.
- In order to receive funding from the World Bank, Pakistan had to implement reforms in sectors such as education, health, infrastructure, and governance.
- The World Bank also provided technical assistance and policy advice to support these reforms.
Combined Pressure:
- The pressure from both the IMF and the World Bank played a crucial role in shaping Pakistan's reform agenda.
- The conditionalities attached to the financial assistance provided by these institutions compelled Pakistan to undertake necessary reforms.
- The reforms aimed to address macroeconomic imbalances, improve governance and institutions, enhance social sector development, and promote private sector-led growth.
Conclusion:
In conclusion, the reforms introduced in Pakistan were a response to external pressures, primarily from the IMF and the World Bank. These institutions provided financial assistance and policy advice, but also required Pakistan to implement structural reforms in various sectors. The combined pressure from these organizations influenced Pakistan's reform agenda and played a significant role in addressing economic challenges and promoting sustainable development.

Agriculture as considered here encompasses arable use (the growing of the widest possible range of annual crops), horticulture (perennial crops in general, and fruit trees in particular), pastural use (grassland and fodder crops) and silviculture (commercial growing of trees).

Scarcity of capital, technological backwardness, and unemployment are generally found in underdeveloped countries.
Underdeveloped countries, also known as developing countries or less developed countries, face various challenges that hinder their economic growth and progress. Some of the main reasons why scarcity of capital, technological backwardness, and unemployment are prevalent in underdeveloped countries are:
1. Lack of investment: Underdeveloped countries often lack sufficient capital to invest in infrastructure, industries, and technological advancements. Limited access to financial resources hampers their ability to develop and modernize their economies.
2. Technological backwardness: Underdeveloped countries often lag behind in terms of technological advancements and innovation. Limited access to modern technologies, lack of research and development capabilities, and inadequate infrastructure hinder their progress in various sectors.
3. High unemployment rates: Underdeveloped countries often struggle with high levels of unemployment. Factors such as limited job opportunities, low skill levels, and inadequate education and training systems contribute to the high unemployment rates in these countries.
4. Poverty: Underdeveloped countries often face widespread poverty, which further exacerbates the scarcity of capital and technological backwardness. Limited resources and lack of economic opportunities trap people in a cycle of poverty, making it difficult to invest in education, health, and other essential sectors.
5. Weak institutional frameworks: Underdeveloped countries often have weak governance structures, corruption, and inadequate legal and regulatory frameworks. These factors can hinder economic growth, discourage foreign investment, and impede technological advancements.
It is important to note that while underdeveloped countries primarily face these challenges, some developed countries may also experience elements of scarcity of capital, technological backwardness, and unemployment in certain regions or sectors. However, the prevalence of these issues is generally higher in underdeveloped countries.

Policy of 'reform and opening-up' launched in 1978
The policy of 'reform and opening-up' was a significant turning point in China's modern history. It was initiated by the Chinese government under the leadership of Deng Xiaoping in 1978. Here are the key points to understand:
- Background: Prior to the launch of the reform and opening-up policy, China had experienced several decades of economic and social turmoil under the leadership of Mao Zedong. The country's economy was largely planned and centralized, resulting in inefficiencies and stagnation.
- Objective: The main objective of the reform and opening-up policy was to shift China from a centrally planned economy to a more market-oriented and globally integrated economy. The government aimed to modernize the country, improve living standards, and achieve sustainable economic growth.
- Key measures: The policy introduced a series of reforms and measures aimed at liberalizing the economy and attracting foreign investment. These included the establishment of special economic zones, relaxation of state control over prices and production, encouragement of private enterprise, and opening up to international trade and investment.
- Economic impact: The reform and opening-up policy had a profound impact on China's economy. It led to rapid economic growth, with average annual GDP growth rate exceeding 9% for several decades. The country transformed into the world's second-largest economy and lifted millions of people out of poverty.
- Social changes: The policy also brought about significant social changes in China. It led to the emergence of a middle class, urbanization, and increased consumerism. It also brought greater exposure to Western culture and ideas.
- Continuity and challenges: The reform and opening-up policy has continued to shape China's economic and social development. However, it has also faced challenges and criticism, including issues related to income inequality, environmental degradation, and the need to further deepen reforms.
In conclusion, the policy of 'reform and opening-up' was launched in 1978 by the Chinese government under Deng Xiaoping's leadership. It aimed to shift China towards a more market-oriented and globally integrated economy, leading to significant economic and social changes in the country.

To determine which country has a higher per capita income, we need to compare the per capita income of China, Pakistan, and India.
Per Capita Income:
- Per capita income is a measure of the average income earned per person in a specific country.
- It is calculated by dividing the total income of a country by its population.
Let's compare the per capita income of the given countries:
A. China:
- China is known for its rapid economic growth and development.
- According to recent data, China has a relatively high per capita income compared to other developing countries.
- The per capita income of China is higher than Pakistan and India.
B. Pakistan:
- Pakistan is a developing country with a growing population.
- The per capita income of Pakistan is lower compared to China and India.
C. India:
- India is also a developing country with a large population.
- The per capita income of India is lower compared to China and higher than Pakistan.
Conclusion:
Based on the given information, the correct answer is A: China. China has a higher per capita income compared to Pakistan and India.

Foreign loan cause show the sovereign to our country and payment of high rate of interest and and such cause debt trap.

The Gini index is a simple measure of the distribution of income across income percentiles in a population. A higher Gini index indicates greater inequality, with high income individuals receiving much larger percentages of the total income of the population.

Malawi remains one of the poorest countries in the world, with a Human Development Index (HDI) of 0.418, ranking 170 out of 187 countries (UNDP 2013 HDR). Life expectancy stands at about 54.8 years and the country is marked by high levels of vulnerability including poor nutrition.

Explanation:
The common price level base is used for meaningful comparison because:
1. 100 GDP of one country is not the same as 100 GDP of another country: GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders. However, the value of goods and services can vary significantly between countries due to differences in factors such as labor costs, exchange rates, and productivity. Therefore, comparing GDP values without adjusting for these differences would not provide an accurate comparison.
2. Domestic prices differ in different countries: Prices of goods and services can vary significantly between countries due to factors such as inflation rates, exchange rates, and purchasing power. Therefore, comparing economic indicators such as GDP, income, or inflation without considering the differences in price levels would not reflect the true economic situation of the countries being compared.
By using a common price level base, such as a common currency or a purchasing power parity (PPP) adjustment, we can ensure that the comparison is meaningful and reflects the real differences in economic performance between countries. This allows for a more accurate assessment of economic indicators and facilitates better decision-making in areas such as trade, investment, and policy formulation.

UNDP stands for United Nations Development Programme.
The detailed solution is as follows:
Introduction:
The United Nations Development Programme (UNDP) is a global development agency established by the United Nations General Assembly in 1965. It aims to eradicate poverty, reduce inequality, and promote sustainable development worldwide.
Explanation:
Here is a detailed explanation of the given options:
A. United Nations Development Programme:
- This is the correct answer. UNDP stands for United Nations Development Programme, which is a UN agency responsible for promoting sustainable development and human development globally.
B. United Nations Development Policy:
- This option is incorrect. UNDP does not stand for United Nations Development Policy. UNDP primarily focuses on implementing development programs and policies rather than formulating development policies.
C. Union Nations Development Programme:
- This option is incorrect. UNDP does not stand for Union Nations Development Programme. The correct term is United Nations Development Programme, which denotes the collaboration and coordination among nations under the United Nations umbrella.
D. None of These:
- This option is incorrect. UNDP stands for United Nations Development Programme. It is a well-established global agency with a specific mandate and role in promoting development worldwide.
Conclusion:
UNDP stands for United Nations Development Programme, which is a global agency working towards eradicating poverty, reducing inequality, and promoting sustainable development.

Arranging countries according to their HDI ranking:


The correct order of the countries according to their HDI ranking is:


A: II, I, III


Explanation:


To determine the correct order, we need to refer to the Human Development Index (HDI) rankings of the countries. HDI is a measure of a country's overall development based on factors such as life expectancy, education, and income. The higher the HDI, the more developed the country is considered to be.


Here is the explanation for the correct order:


(i) China:
- China has consistently ranked higher than both India and Pakistan in the HDI rankings.
- It has made significant progress in terms of economic growth, education, and healthcare.
- Therefore, China is ranked higher than both India and Pakistan.


(ii) India:
- India has shown progress in various development indicators but still falls behind China.
- It has a lower HDI ranking compared to China but is higher than Pakistan.
- Therefore, India is ranked second in the given options.


(iii) Pakistan:
- Pakistan has a lower HDI ranking compared to both China and India.
- It faces challenges in areas such as education, healthcare, and income inequality.
- Therefore, Pakistan is ranked last in the given options.


In conclusion, the correct order of the countries according to their HDI ranking is II (China), I (India), III (Pakistan).

Service Sector

The service sector, also known as the tertiary sector, is the sector of the economy that provides services rather than producing goods. It encompasses a wide range of industries and activities that involve providing various services to consumers and businesses.

Characteristics of the Service Sector:

• Intangible: Services are intangible and cannot be touched or felt.


• Produced and consumed simultaneously: Services are usually produced and consumed at the same time.


• Customer-oriented: The focus is on meeting customer needs and providing satisfaction.


• High degree of customer interaction: Services often require direct interaction between service providers and customers.


• Varied industries: The service sector includes industries such as healthcare, education, banking, hospitality, transportation, and many more.

Comparison with Other Sectors:

• Primary Sector: The primary sector involves the extraction of natural resources, such as agriculture, mining, and fishing. It is the sector that directly uses natural resources for production.


• Secondary Sector: The secondary sector involves the manufacturing and construction industries. It is responsible for transforming raw materials from the primary sector into finished goods.


• Tertiary Sector: The tertiary sector, or service sector, focuses on providing services to consumers and businesses. It does not involve direct extraction or manufacturing of goods.

Answer: C. Tertiary sector

The service sector plays a crucial role in modern economies, contributing significantly to economic growth and employment opportunities. It is driven by the increasing demand for various services in a society that values convenience, quality, and personalized experiences.

The Human Development Index (HDI) is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores a higher HDI when the lifespan is higher, the education level is higher, and the GDP per capita is higher. It was developed by Indian Nobel prize winner Amartya Sen and Pakistani economist Mahbub ul Haq, with help from Gustav Ranis of Yale University and Lord Meghnad Desai of the London School of Economics, and was further used to measure a country's development by the United Nations Development Program (UNDP)'s Human Development Report Office.