CBSE Class 12

Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 4 Determination of Income and Employment were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

Determination of Income and Employment NCERT Solutions for Class 12 Economics Chapter 4

Determination of Income and Employment Questions and Answers Class 12 Economics Chapter 4

Question 1.
What is marginal propensity to consume? How is it related to marginal propensity to save? (C.B.S.E. 2011 Comp.)
Answer:
Marginal Propensity to Consume (MPC) is the ratio of change in consumption due to the change in ‘ income. It is the rate of in umption due to a unit increment in income.
\(M P C=\frac{\Delta C}{\Delta Y}\)

Marginal Propensity to Save (MPS) is the ratio of change in saving due to the change in income. It is the rate of increase in ex-ante saving due to a unit increment in income.
\( \mathrm{MPS}=\frac{\Delta \mathrm{S}}{\Delta Y}\)

Question 2.
What is the difference between ex-ante investment and ex-post investment?
Answer:
Following are the points of difference between ex-ante investment and ex-post investment:

Question 3.
What do you understand by ‘parametric shift of a line’? How does a line shift when its
(i) slope decreases and (ii) its intercept increase?
Answer:
Parametric shift means a shift in the straight line curve due to a change in the value of a parameter. As the value of the parameter changes, the straight line curve rotates upward or downward along the same vertical intercept .
(i) When the slope of a line decreases, the line rotates downwards along the same-vertical intercept. It can be shown with the help of a diagram.

In the diagram, the original line is represented by an equation: b = a + 2. The slope is I. As the slope decreases from I to 0.5, the line shifts downwards to b = 0.5a + 2.

(ii) When the intercept of a line increases, there is a parallel shift in the line. It can be shown with the help of a diagram

In the diagram, the original line is represented by an equation: b = 0.5a + 2. The intercept is 2. As the intercept increases from 2 to 3, the line shifts upwards to b = 0.5a + 3.

Question 4.
What is ‘effective demand’? How will you drive the autonomous expenditure multiplier when price of final goods and the ratio of interest are given?
Answer:
Effective demand refers to the Aggregate Demand, which is equal to the Aggregate Supply under the conditions of fixed price of final goods and constant rate of interest in the economy. The supply of final goods is assumed to be infinitely elastic at constant price over short period of time.

Autonomous expenditure multiplier is the ratio of change in aggregate output or income to a change in autonomous spending. That is, \(\text { Autonomous Expenditure Multiplier }=\frac{\text { Change in Aggregate Output }}{\text { Change in Autonomous Spending }}\) An increase or decrease in autonomous spending causes more than proportionate increase in the aggregate output of final goods through the multiplier process.

Question 5.
Measure the level of ex-ante Aggregate Demand when autonomous investment and consumption expenditure (A) is ₹ 50 crore, and MPS is 0.2 and level of income (Y) is ₹ 4000 crores. State whether the economy is in equilibrium or not (cite reasons).
Answer:
Level of income (Y) = ₹ 4,000 crores
Autonomous expenditure \(\overline{\mathrm{A}}\) = ₹ 50 crores
Marginal Propensity to Save (MPS) = 0.2
Hence, Marginal Propensity to Consume (MPC = c) = 1 – MPS = 1 – 0.2 = 0.8
Ex-ante Aggregate Demand = \(\overline{\mathrm{A}}\) + cY
Substituting the appropriate values; we get
Ex-ante Aggregate Demand
= 50 + (0.8 x 4000)
= 50 + 3200
= 3250
Thus, the level of ex-ante Aggregate Demand is ₹ 3,250 crores.
Since the ex-ante Aggregate Demand is less than the level of income (output), there is an excess supply in the economy. Thus, ₹ 4,000 crores is not the equilibrium level of income in the economy.

Question 6.
Explain ‘Paradox of Thrift.’
Answer:
The attempt by an economy as a whole to save more, not only results in a decrease in amount they actually succeed to save, but may reduce the equilibrium level of income and output. The unexpected result is called Paradox of thrift When individuals try to save more, they end up consuming less. The decline in consumption will-lead to a fall in Aggregate Demand, which causes producers to cut back production and lay people off. Eventually, income falls, and both consumption and savings decline.

In other words, the increase in the Marginal Propensity to Save means a decrease in the Marginal Propensity to Consume, and therefore, a fall in the value of the multiplier. Given autonomous spending, the new macroeconomic equilibrium associated with the new value of the multiplier will be lower, meaning lower output, income, and employment. The phenomena can be explained with the help of a diagram.

In the diagram, the initial level of equilibrium is E, and the level of output corresponding to equilibrium is OY*. A decline is Marginal Propensity to Consume (MPC) reduces the slope of the Aggregate Demand (AD) curve. As a result the AD curve shifts downwards from AD to AD, The equilibrium level shifts from E to E, which reduces the income from OY* to OY*.

Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 3 Money and Banking were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

Money and Banking NCERT Solutions for Class 12 Economics Chapter 3

Money and Banking Questions and Answers Class 12 Economics Chapter 3

Question 1.
What is a barter system? What are its drawbacks?
Answer:
Economic exchanges without the mediation of money are referred as barter system. In other words, barter system is a system under which goods are exchanged for goods.

Following are the drawbacks of barter system:

(i) Lack of Double Co-incidence of Wants: The barter system requires that a person having a surplus of one commodity should be able to find another person who wants that commodity as well as has something acceptable to offer in exchange. This is called double coincidence of wants, which is hard to find.

(ii) Lack of Common Measure ofValue: Different commodities are of different value. There is no common unit of measuring value under the barter system. It is difficult to decide the proportion in which the two goods are to be exchanged.

(iii) Lack of Standard of Deferred Payments: The barter system lacks any satisfactory unit to engage in contracts involving future (deferred) payments. It may be due to disagreement regarding the specific commodity and its quality. Moreover, there is a risk of an increase or decrease in the value of the good over time, thus benefitting the lender or borrower of the good respectively.

(iv) Difficulty of Storage of value: It is difficult to store wealth for further use. Most of the goods like wheat, rice, cattle, etc. deteriorate with the passage of time or involve heavy storage cost.

(v) Difficulty of Transfer of Value: Under barter system, wealth in the form of goods cannot be transferred from one place to another. It is a difficult task as it requires a lot of time and resources.

Question 2.
What are the main functions of money? How does money overcome the shortcomings of a barter system? (C.B.S.E Outside Delhi 2011 Comp.)
Answer:
The following are the important functions of money:
(i) Medium of Exchange: Money acts as an intermediary in the exchange transactions of goods and services. Money solves the problem of double coincidence of wants by acting as a medium of exchange for all goods and services.

(ii) Unit of value: Money acts as a convenient unit of account The value of all the goods and services can be expressed in monetary units. Money as a unit of value helps in measuring the value of exchange for various goods and services.

(iii) Store of value: Money is not a perishable item and its storage costs are also considerably low. Moreover, it is acceptable to anyone at any point of time. Thus, money acts as a store of value for individuals. Under barter system, wealth in the form of goods like wheat, rice, cattle, etc. deteriorate with the passage of time or involve heavy storage cost. However, wealth can easily be stored in the form of money for future use.

(iv) Standard of Deferred Payments: Money acts as standard in terms of which future or deferred payments are stated because money maintains a constant value o\ c a period of time. Under barter system, goods could not be used for future contracts due to the risk associated with type, quality and value of the goods. Money exchange has no such problem.

Question 3.
What is transaction demand for money? How it is related to the value of transactions over a specified period of time?
Answer:
Transaction demand for money is a measure of the money held by the public to carry out ordinary day to day transactions. People tend to hold their incomes to undertake transactions over a certain period of time. The relationship between transaction demand for money and value of transactions can be expressed as:
\(\begin{aligned}
M_{T}^{\phi} &=k \cdot T \\
\frac{1}{k} M_{T}^{d} &=T \\
v_{0} M_{T}^{d} &=T
\end{aligned}\)

where \(M_{T}^{d}Md\)= Transaction Demand for Money
v =\(\frac{1}{k}= \) Velocity of Circulation of Money (k being a positive fraction)
T = Total Value of Nominal Transactions in the economy over a time period

The transaction demand for money is positively related to total value of transactions and negatively related to the velocity with which the money is circulated in the economy.

Question 4.
What are the alternative definitions of money supply in India?
Answer:
Money supply is a stock variable. It is the total stock of different types of money (currency in circulation and deposits) available in an economy at a specific point of time. In India,-‘M(, M2, M3, M4 are the four alternative measures of money supply.
They are defined as follows:

M₁ = CU + DD
M₂= M₁ Savings deposits with post office saving banks
M₃ = M₁ + Time deposits of commercial banks
M₄ = M₃ + Total deposits with post office savings organisations (excluding National Savings Certificates)
CU = Currency (notes and coins held by public)
DD = Net demand deposits held by the commercial banks

Question 5.
What is a ‘legal tender? What is ‘fiat money’?
Answer:
Legal tender is the money that, by law, must be accepted as a medium of exchange and payment for debt by the citizens of a country. It cannot be refused by any person against the payment for transactions. Everyone is bound to accept it because its non-acceptance is an offence. Example of legal tender is currency notes issued by Reserve Bank of India. Fiat money refers to the currency notes and coins made legal tender by the order of the government. They do not have intrinsic value like a gold or silver coin.

Question 6.
What is high powered money?
Answer:
The total liability of the monetary authority of the country (RBI in India) is called the monetary base or high powered money. It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the government of India and commercial banks with RBI. High powered money can be expressed with the help of equation:
H = CU +R
= cdr x DD + rdr x DD
= (cdr + rdr) DD

Where, H = High powered money
cdr= Currency Deposit Ratio
rdr= Reserve Deposit Ratio

Question 7.
Explain the functions of a commercial bank.
Answer:
The functions of a commercial bank are classified below:
I. Primary Functions: Following are the primary functions of a commercial bank:

(i) Acceptance Deposits: Commercial banks accept deposits from the public and lend this money to companies and other people for investment projects. The banks offer interests on deposits to the deposit holders. Deposits are broadly into:

• Demand Deposits: These are, payable by the banks on demand from the account holder. For example: Current and Savings Account Deposits
• Time Deposits: These deposits have a fixed period to maturity. For example: Fixed Deposits.

(ii) Advancing Loans: Extending loans is another important primary function of the commercial banks. After keeping a certain portion of the deposits as reserves, the bank gives the balance to borrowers in the form of loans and advances.

The rate at which banks lend out their reserve to investors is called the lending rate. Lending by commercial banks consists mainly of cash credit, demand and short-term loans to private investors and banks. The credit worthiness of a person is judged by his current assets or the collateral (a security pledged for the repayment of a loan) he can offer.

2. Secondary Functions: Following are the secondary functions of a commercial bank:

• To transfer funds from one place to another.
• To collect funds on behalf of the customers.
• To purchase and sell shares and debentures on behalf of the customers.
• To provide income-tax consultancy.
• To pay bills and insurance premium as per customer’s direction.
• To provide facility of travellers’ cheque and letter of credit.

Question 8.
What is money multiplier? What determines the value of this multiplier?
Answer:
Money Multiplier: Money multiplier may be defined as the ratio of the stock of money (money supply) to the stock of high powered money in an economy. That is,
Money Multiplier = MoneyStock
\(\begin{aligned}
\text { Money Multiplier } &=\frac{\text { Money Stock }}{\text { High Powered Money }} \\
&=\frac{M}{H}
\end{aligned}\)
Since the stock of money is always greater than the high powered money, the value of money multiplier is always greaterthan one.
Following ratios play an important role in the determination of the value of the money multiplier:

(i) Currency Deposit Ratio: Currency deposit ratio is the ratio of currency held by public to the net demand deposits held by the commercial banks.
Currency Deposit Ratio = \(\frac{C U}{D D}\)

(ii) Reserve Deposit Ratio: Reserve deposit is a ratio of total deposits, which the commercial banks keep as reserves to the net demand deposits held by them.
Reserve Deposit Ratio = \(\frac{R}{D D}\)

where, CU = Currency (notes and coins held by public)
R = Reserves held by the commercial banks
DD = Net demand deposits held by the commercial banks

Question 9.
What are the instruments of monetary policy of RBI?
Answer:
Following are the instruments of monetary policy of RBI:
Open Market Operation: Open market operation is the policy of the central monetary authority to sell and buy the government securities in the market. RBI purchases or sells government securities to the general public in a bid to increase or decrease the stock of high powered money in the economy.

Bank Rate Policy: Bank rate is the minimum rate at which the central bank discounts the first class bills of exchange and provides credit to the commercial banks. Higher bank rate reduces the lending capacity of the commercial banks as they get funds at a higher interest rate from RBI. Consequently, credit contracts in the economy as public borrows less at high rate of interest.

Similarly, lower bank rate increases the lending capacity of the commercial banks as they get funds at a lower interest rate from RBI. Consequently, credit expands in the economy as public borrows more at low rate of interest

Varying Reserve Requirements: Cash Reserve Ratio (CRR) is the minimum fraction of the total deposits with the commercial banks, which they are required to keep with the central bank. Statutory Liquidity Ratio (SLR), on the other hand, is the minimum fraction of the total deposits with the commercial bank, which they are required to maintain in the form of specified liquid assets.

A high or low value of CRR or SLR helps increase or decrease the value of reserve deposit ratio, thus diminishing or increasing the value of the money multiplier and money supply in the economy.

Question 10.
Do you consider a commercial bank ‘creator of money’ in the economy?
Answer:
A commercial bank is a ‘creator of money’ in the economy. The process of money creation can be explained as below:
Suppose every bank is required to maintain 10 percent of its total deposits in the form of cash reserves. Further assume that Bank A receives a primary deposit of? H. Bank A will keep 10 percent of ₹ H (₹ 0.1H) as reserves and will lend out the balance, ₹ 0.9H, to the borrowers. People who receive ₹ 0.9H from Bank A are expected to spend the amount or pay their creditors, and hence, the money will come back to the banking system, say in Bank B.

After keeping a reserve of ₹ 0.09H (10 percent of ₹0.9H), Bank B will lend out the balance, ₹ 0.81H, to the borrowers. Again, those who receive ₹ 0.81H from Bank B are expected to spend the amount, and hence, the money will come back to the banking system, say in Bank C.

After keeping a reserve of ₹ 0.081H (10 percent of ₹ 0.81H), Bank C will lend out the balance, ₹ 0.729H, to the borrowers. This process of deposit turning into loan or investment, which again becomes a new deposit, goes on until the primary deposit of ₹ H is completely exhausted. The total of all the deposits resulting from primary deposit will be 10 times of ₹ H.

Question 11.
What role of RBI is known as ‘lender of last resort’?
Answer:
If all the account holders of all commercial banks in the country want their deposits back at the same time, the bank will not have enough means to satisfy the need of every account holder and there will be bank failures. The Reserve Bank of India plays a crucial role in the situation of Bank run. During crisis, if commercial banks fail to meet the obligations of their depositors, the central bank plays a crucial role.

The central bank stands by the commercial banks as a guarantor and extends loans to ensure the solvency of the latter. This saves the commercial banks from possible breakdown. The central banks always provide the help needed by the commercial banks. This function of the central bank makes it the ‘lender of the last resort’.

Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 2 National Income Accounting Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

National Income Accounting NCERT Solutions for Class 12 Economics Chapter 2

National Income Accounting Questions and Answers Class 12 Economics Chapter 2

Question 1.
What are the four factors of production and what are the remunerations to each of these called?
Answer:
The four factors of production and their respective remunerations: Land – Rent; Labour – Wage; Capital – Interest; and Entrepreneur – Profit.

Question 2.
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
Answer:
The aggregate final expenditure of an economy should always be equal to the aggregate factor payments (or incomes) because of the circular flow of income. The final expenditure and aggregate factor payments are two sides of the same coin. The firms hire or purchase factor services from households and use them to produce goods and services.

Factor payments made by the firms become factor incomes in the hands of households. Households spend their income on purchase of goods and services, which are produced by firms. Expenditure by household implies income to the firms. Thus, the income of economy goes througn the two sectors, firms and households, in a circular way. This is represented in the following figure:

In the figure, the uppermost arrow moving from the households to the firms represents the spending of households on goods and services produced by the firms. The second arrow moving from the firms to the households is the counterpart of the arrow above. It stands for the goods and services, which are flowing from the firms to the households.

Similarly, the two arrows at the bottom of the diagram represent the factor of the production market The lowermost arrow moving from the households to the firms symbolises the services that the households are rendering to the firms. Using these services, the firms are manufacturing the output. The arrow above’-this, moving from the firms to the households,

represents the payments made by the firms xo the households for the services provided by the latter. Thus, there is no leakage from this circular flow of income between households and firms. That is, the money spent by the firms on factor services is exactly equal to the money they receive for the goods and services sold to the households.

Question 3.
Distinguish between stock and flow. (C.B.S.E. Outside Delhi 2013,2017).
Between net investment and capital, which is a stock and which is a flow? Compare net investment and capital with flow of water into a tank.
Answer:
Following are the points of difference between stock and flow:

Net investment is a flow while capital is a stock. Net investment is a flow variable because its magnitude is measured over a period of time, say, one year. Capital is a stock because its magnitude is measured at a point of time, say, on 31 st March, 2017. Net investment and capital can be compared with flow of water into a tank.

Capital is like water in tank while net investment is the water flowing in to and out of the tank. Flow of water into tank is measured over a period of time while water in the tank is measured at a particular point of time.

Question 4.
What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.
Answer:
The change in inventories may be planned or unplanned. Following points explain the difference between the two:

Value added is the difference between the value of the total output and the value of intermediary goods used by each production unit in an economy. It includes the change in firm’s stock of inventories. Thus, Gross Value Added of firm = Value of sales by the firm + Value of change in inventories : – Value of intermediate goods used by the firm
GVA = V + A – Z
The change in inventories means difference between opening inventories and closing inventories. The change in inventories affects the Gross Value Added. It is derived from the production and sales of the firm.

Question 5.
Write down the three identities of calculating the GDP of a country by the three methods. Also ; briefly explain why each of these should give us the same value of GDP.
Answer:
Following are the three methods and their respective identities for calculating GDP:
(i) Value Added Method:
GDP_Mp = GVA₁ + GVA₂ +………….+GVA_N
\(G D P_{M P}=\sum_{j=1}^{N} G V A\)

(ii) Income Method:
GDP_Mp = Rent + Wage + Interest + Profit + Depreciation + Met Indirect Taxes
GDP_Mp= R + W+ l_n + P + Depreciation + NIT

(iii) Expenditure Method:
GDP_W = Private Consumption + Investment + Government Consumption + (Exports-lmports)
GDP_mp = C + I + G + (X-M)

All the three methods of measuring National: Income give the same value of GDP. Each method reflects three different phases of the same circular flow of income.

• Production phase gives the GDP using output or value added method.
• Distribution phase give the GDP using income method.
• Disposition phase gives the GDP using expenditure method.

Question 6.
Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was ₹ 2,000 crores. The amount of budget deficit was (-) ₹ 1,500 crores. What was the volume of trade deficit of that country?
Answer:.
Budget deficit means the excess of the government expenditure (G) over tax revenue (T).
Budget Deficit = G – T
Trade deficit means the excess of import (M) expenditure over the export revenue (X) earned by the economy.
Trade Deficit = M – X
Given:   I – S = ₹ 2,000 crores
G – T = ₹ 1,500 crores
Trade Deficit = (I – S) + (G – T)
= 2,000 + 1,500 = 3,500
Thus, the volume of trade deficit of the country is ₹ 3,500 crores.

Question 7.
Suppose the GDP at market price of a country in a particular year was ₹ 1, 100 crores. Net Factor Income from Abroad was f 100 crores. The value of indirect taxes – subsidies was ₹ 150 crores and National Income was ^ 850 crores. Calculate the aggregate value of depreciation.
Answer:
The following information is given:

National Income (NNP_FC) = GDP_Mp + Net Factor Income from Abroad – Net Indirect Taxes – Depreciation
Substituting appropriate values from the table, we get:
850 = 1, 100 + 100 – 150 – Depreciation Depreciation = 1, 100 + 100 – 150 – 850 = 1,200- 1000 = 200
Thus, the aggregate value of depreciation is ? 200 crores.

Question 8.
Net National Product at Factor Cost of a particular country in a year is ₹ 1,900 crores. There are no interest payments made by the households to the firms/ government, or by the firms/ governments to the households. The Personal Disposable Income of the households is ₹ 1,200 crores. The personal income taxes paid by them ₹ 600 crores and the value of retained earnings of the firms and government is valued at? 200 crores. What is the value of transfer payments made by the government and firms to the households?
Answer:
The following information is given:

Personal Disposable Income
= NNP_fC– Retained Earnings – Personal Taxes + Transfer Payments from the Government and the Firms Substituting appropriate values from the table, we get:
1,200 = 1,900 – 200 – 600 + Transfer Payments from the Government and the Firms
Transfer payments from the Government and the firms
= 1,200 + 600 + 200- 1,900 = 2,000 – 1,900 = 100
Thus, the value of transfer payments made by the government and firms to the households is ₹ 100 crores.

Question 9.
From the following data, calculate Personal Income and Personal Disposable Income.
Answer:

Answer:
Personal Income
= Net Domestic Product at Factor Cost + Net Factor Income from Abroad – Undistributed Profit – Corporate Tax + Interest Received by Households + Transfer Income – Interest paid by Households
= 8,000 + 200-1,000 -500+1,500 + 300-1,200
= 10,000-2,700
= 7,300
Personal Disposable Income
= Personal Income – Personal Tax = 7,300 – 500 = 6,800
Thus, the Persona! Income is ₹ 7,300 crores and Personal Disposable Income is ₹ 6,800 crores.

Question 10.
In a single day, Raju, the barber, collects 500 from haircuts; over this day, his equipment depreciates in value by ₹ 50. Of the remaining ₹ 450, Raju pays sales tax worth ₹ 30, takes home ₹ 200 and retains ₹ 220 for improvement and buying of new equipments. He further pays ₹ 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income:

• Gross Domestic Product
• NNP at Market Price
• NNP at Factor Cost
• Personal Income
• Personal Disposable Income

Answer:
The following information is given:

(i) Gross Domestic Product at Market Price (GDP_mp) = ₹ 500
Gross Domestic Product at Factor Cost (GDP_FC) = GDP_mp – GDP_mp
= ₹ 500 – ₹ 30
= ₹ 470

(ii) NNP at Market Price = GDP_mp – Depreciation
= ₹ 500 – ₹ 50
= ₹ 450

(iii) NNP at Factor Cost = NNP_mp – Indirect Taxes
= ₹ 450 – ₹ 30
= ₹ 420

(iv) Personal Income = NNP_FC – Retained Earning
= ₹ 420 – ₹ 220
=₹ 200

(v) Personal Disposable Income = Personal Income – Personal Taxes
= ₹ 200 – ₹ 20
= ₹ 180

Question 11.
The value of the nominal GNP of an economy was ₹ 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was ₹ 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
Answer:
Nominal GNP = 2,500 crores
Real GNP = 3,000 crores

Since the GNP deflator is less than 100 percent, price level has not risen. In fact, price level declined between the base year and the year under consideration.

Question 12.
Write down some of the limitations of using GDP as an index of welfare of a country.
Answer:
Following are the some of the limitations of using GDP as an index of the welfare of a country:
(i) Distribution of GDP: The level of economic welfare may not rise if with an increase in the level of Gross Domestic Product (GDP), the distribution of GDP becomes more unequal. Since only a few people benefit from the increase in the level of income, rich are becoming richer and poor are becoming poorer, If GDP growth increases the gap between rich and poor then it cannot be treated as an index of welfare for a country.

(ii) Non-monetary Exchanges: In economies like India, barter system of exchange is not totally non-existent. Non-monetary transactions are quite evident in rural areas where payments to farm labourers are often made in kind rather than cash. Such transactions are not recorded because they are outside the monetary system of Exchange. Further, women at homes do not get paid for the household services they perform for the family. To this extent, GDP remains underestimated and is therefore, not an appropriate index of welfare.

(iii) Externalities: Externalities refer to the harms (or benefits) a firm or an individual causes to another for which they are not penalised (or paid for). Externalities may be positive or negative.

For example, increase in GDP may be at the cost of considerable pains and’sacrifices in the form of environment pollution. As a result, increase in GDP may mean less economic welfare. If increase in GDP has been brought about by making workers work in bad working conditions, increase in GDP will not raise the level of economic welfare.

Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 1 Introduction Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

Introduction to Macroeconomics NCERT Solutions for Class 12 Economics Chapter 1

Introduction to Macroeconomics Questions and Answers Class 12 Economics Chapter 1

Question 1.
What is the difference between microeconomics and macroeconomics?
Answer:
Following points explain the difference between microeconomics and macroeconomics:

Question 2.
What are the important features of a capitalist economy?
Answer:
Following are the important features of a capitalist economy:

• There is private ownership of means of production.
• Production takes place for selling the output in the market with profit as the primary motive.
• Prices of goods and services are determined by market forces of demand and supply with minimum intervention by the government.
• Consumers are free to choose whatever they can afford.

Question 3.
Describe the four major sectors in an economy according to the macroeconomic point of view.
Answer:
Following are the four major sectors in an economy:
(i) Household Sector: By household sector, we mean a group of individuals who purchase goods and services for consumption.

(ii) Firm/Production Sector: The production units are called firms, The firm sector includes all the  units that buy factors of production from households.

(iii) Government Sector: The role of the government sector includes framing laws, enforcing them and delivering justice. The government, in many instances, undertakes production apart from imposing taxes and spending money on building public infrastructure, running schools, colleges, providing health services, etc.

(iv) External Sector: The external sector includes exports and imports of goods and services. Capital  from foreign countries may also flow into the domestic country, or the domestic country may be exporting capital to foreign countries.

Question 4.
Describe the Great Depression of 1929.
Answer:
The period from 1929 to 1933 is known as the Great Depression. This period witnessed tremendous decline in the level of output and employment in the countries of Europe and North America. It affected other countries of the world as well. The demand for goods in the market was low, many factories were lying idle and workers were thrown out of jobs.

During this period, unemployment rate in USA rose from 3 percent to 25 percent while aggregate output fell by about 33%. These events made the economists think about the functioning of the economy in a different way. In other words, we can say that macroeconomics was born as a result of the great depression.

Detailed, Step-by-Step NCERT Solutions for Class 12 Political Science Chapter 18 Recent Developments in Indian Politics Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

Recent Developments in Indian Politics NCERT Solutions for Class 12 Political Science Chapter 18

Recent Developments in Indian Politics Questions and Answers Class 12 Political Science Chapter 18

Question 1.
Unscramble a bunch of disarranged press clipping file of Unni-Munni and arrange the file chronologically. (Imp.)
(a) Mandal Recommendations and Anti-Reservation stir.
(b) Formation of the Janata Dal
(c) The demolition of Rabri Masjid.
(d) Assassination of Smt. Indira Gandhi.
(e) The formation of NDA government
(f) Godhra incident and its fall out.
(g) Formation of the UPA government.
Answer:
(a) Assassination of Smt. Indira Gandhi.
(b) Formation of the Janata Dal.
(c) Mandal Recommendation and Anti-Reservation stir.
(d) The demolition of Babri Masjid.
(e) The formation of NDA government.
(f) Godhra incident and its fall out.
(g) Formation of the UPA government.

Question 2.
Match the following :
(a) Politics of Consensus – (i) Shah Bano Case
(b) Caste based parties – (ii) Rise of OBCs
(c) Personal law and Gender Justice – (iii) Coalition governament.
(d) Growing strength of regional politics – (iv) Agreement on Economic policies.
Answer:
(a) – (iv); (b) – (ii); (c) – (i); (d) – (iii).

Question 3.
State the main issues in Indian Politics in the period after 1989. What different con¬figuration of political parties these differences lead to ?
Answer:
From 1952 to 1967 the Congress Party dominates Indian politics. In 1977 for the first time non Congress government or Janata Party government was established. After 1989 main issues in Indian politics are as follows :

• Multiple Party System.
• End of Dominance of a Single Party.
• Rise of Effective opposition.
• Decline in the influence of the National Political Party.
• Increasing Importance and Role of Regional Political Parties
• Non-Principled Alliance of Political Parties.
• Coalition Politics.
• Growing Politics of Regionalism, Castecism and Criminalization
• Growing Role of Money.
• Hung Parliament.
• Decline of Value Based Politics.

Question 4.
“In the new era of Coalition Politics, political paries are not aligning or re-aligning on the basis of ideology.” What arguments would you put forward to support or oppose this statement ? (Imp.)
Answer:
The organisation of coalition government has become a regular feature of Indian political system. It is a hard fact that in the era of coalition politics, political parties are not aligning or re-aligning on the basis of ideology. Non-principled alliance of political parties before and after the election is an important feature of Indian politics.

To gain power or for some other interests political parties are always ready to have non-principled alliance. In 1989 National Front was formed by Jan-Morcha, Janata Party, Lok Dal and some other parties to defeat the Congress in elections. In these elections National Front emerged as a potent political force and no other party got clear majority.

National Front Government was formed at the centre with outside support of BJP and some other political parties. After the 12th Lok Sabha elections in 1998 BJP led coalition government was formed. But the government could not last for thirteen month, because after the withdrawal of support by A.I.A.D.M.K., the BJP led coalition govern¬ment failed to secure the confidence vote.

In the 13th Lok Sabha election in 1999, National Democratic Alliance consisting of 24 parties secured majority in the Lok Sabha. The policies and ideology of many political parties were opposite to the policies of other parties. National Democratic Alliance formed government under the leadership of Atal Behari Vajpayee. The NDA was a large size alliance and it faced many problems. However, it completed its tenure under the able leadership of Atal Behari Vajpayee.

In April-May 2004, election for 14th Lok Sabha was held. The United Progressive Alliance led coalition government was formed undere the Prime Ministership of Dr. Manmohan Singh. United Progresssive Alliance is supported by the left parties from outside. Ideology of Congress and left parties i.e. CPI and CPI (M) are different and that is why many times left parties have threatened the IJPA government to withdraw the support and ultimately left parties withdrew the support.

Kon-principled alliance have given rise to the politics of opportunism and the politics of expediency. Almost all political parties are always ready to enter into unholy alliance with other parties to achieve their selfish ends. It was happened in 2009, 2014 and even 2019 election also.

Question 5.
Trace the emergence of BJP as a significant force in Post-Emergency politics.
Or
Trace the emergence of B.J.P of a significance force in Indian Politics since 1980’s. (C.B.S.E. Sample Paper 2018)
Answer:
Bhartiya Janata Party is a major National Political Party in India. The Five fold concept of ‘Suchita’ (Probity in Public Life), ‘Suraksha’ (Secu-rity) ‘Swadeshi’ (Economic Nationalism), ‘Samajik Samarasata’ (Social Harmony) and Hindutva (Cul-tural Nationalism) constitute the core content and ideological pillars of the B.J.P. Hindutva or cultural nationalism shall be rainbow which will bridge our present to our glorious past and have the way for an equally glorious future ; it will guide the transition from Swarajya or Surajya. The B.J.P. believes in one nation, one people, one culture.

Emergence of BJP as a Powerful Force in Post-Emergency Politics. Though Janata Party faced a split in July 1979 on the issue of dual membership,but this controversy didn’t end even after the split. On 19th March, 1980 the Parliamentary Board of Janata Party decided by majority vote that “no legislator or office bearer of the Janata Party shall participate in day-to-day activities of the R.S.S.” But the leaders of the erswhile Jana Sangh Aral Behari Vajpayee, L.K, Advani and Nana Deshmukh expressed their strong reservation on it and recorded their dissent.

On 5th April, 1980, the members of former Jan Sangh group called a two-day national convention at Delhi and decided to form a new party. The conference was presided over by Mrs. Vijaya Raje Seindia. On 6th April, a new political organisation the Bharatiya Janata Party was born under the presidentship of former foreign minister. Mr. Atal Behari Vajpayee. On April 24, 1980 the Election Commission granted recognition to the group led by Mr. Atal Behari Vajpayee as a ‘national party’ with the distinct name of the Bharatiya Janata Party. The B.J.P. was also provisionally allotted the symbol of lotus.’

Election Successes. The Election Commission recognised the Bharatiya Janata Party as a national party and its election symbol was Kamal flower (lotus). In the Lok Sabha elections of December 1984, the B.J.P. secured only two seats. In the 11 States Assemby Elections of March 1985 the party did not succeed much. In the ninth Lok Sabha elections of November, 1989 the B.J.P. secured 86 seats. The B.J.P. decided to support National Front government from outside.

In the eighth State Assembly elections in Feb. 1990 the B.J.P. secured absolute majority in Himachal and M.P. In the tenth Lok Sabha elections in 1991 B.J.P. secured 119 seats and in U.P. it formed the government. In 1991 the B.J.P. leader L.K. Advani was recognised as leader of the opposition in the Lok Sabha. In the elections held for 11th Lok Sabha in 1996 the B.J.P. emerged as the largest party securing 161 seats.

Its leader Atal Behari Vajpayee was appointed Prime Minister and he was asked to prove his majority up to 31st May, 1996 but Prime Minister Atal Behari Vajpayee resigned on May 28, 1996 because he failed to prove his majority in the Lok Sabha. Mr. Atal Behari Vajpayee was the recognised opposition leader in the 11th Lok Sabha. In the 12th Lok Sabha elections held in Feb.

March 1998, the B.J.P. secured 182 seats. The B.J.P. and its allies secured 252 seats in the 12th Lok Sabha elec-tions. Mr. Atal Behari Vajpayee was elected as the Party leader by the newly elected B.J.P. Lok Sabha members. Mr. Atal Behari Vajpayee was appointed the Prime Minister. In the 13th Lok Sabha elections held in Sept. Oct. 1999, the B.J.P. secured 182 seats whereas B.J.P. and its allies secured 297 seats. On 10th Oct.

1999 National Democratic Alliance elected Sh. Atal Behari Vajpayee as its leader and he was appointed the Prime Minister. In 14th Lok Sabha elections held in 2004, B.J.P. secured only 138 seats and lost the power in centre. In the 16th Lok Sabha election held in April-May 2014, the B.J.P. won 282 seats and formed the government under the leadership of Sh. Narendra Modi. In 17th Lok Sabha election, B.J.P won 303 seats, and again formed the government under the Leader-ship of Sh. Narendra Modi.

Question 6.
Inspite of the decline of Congress dominance, the Congress Party continues to influence politics in the country, Do you agree ? Give reasons.
Answer:
Indian National Congress is the oldest, well- organised and very important political party of India. After Independence Congress Party dominated from 1947 to 1967 and from 1971 to 1977 as well as from 1980 to 1989. First split of the Congress took place in 1969 and second split in 1978 and third split in 1995. After the split of 1978 the Congress under the leader-ship of Mrs. Indira Gandhi was called Congress (I). On March 12, 1996 the Election Commission recognised Congress (I) as the real Congress Party and it was allowed to use ‘Hand’ as its party symbol.

No doubt there is a decline of Congress dominance but still Congress has great influence in the Indian Politics. Congress is still the most important national party of India. In the tenth Lok Sabha election in May-June 1991, secured 225 seats. In April-May 1996, eleventh Lok Sabha election was held and Congress Party secured only 141 seats. In February-March, 1998 Congress secured 142 seats in the 12th Lok Sabha election.

In the 13th Lok Sabha election held in Sept. Oct. 1999, Congress Party secured 114 seats. It was the worst ever performance of the Congress in the history of Indian elections. In the 14th Lok Sabha elections held in April-May 2004, the Party won 145 seats and formed the government with its alliance under the leadership of Dr. Manmohan Singh.

In the 16th Lok Sabha election held in April-May 2014, the Congress won 44 seats and in 17th Lok Sabha election, this party won 52 seats. At present Congress has great influence on the politics of the country because it has influenced in all the states of India. Moreover, the social base of Congress is broader than that of all other parties of India.

Question 7.
Many people think that a two-party system is required for successful democracy. Drawing from India’s experience of last twenty years, write an essay on what advantages the present party system in India has.
Answer:
Party system is essential for a democratic system of government. Many people think that a two party system is required for successful democracy. For exampple in England and U.S.A. democracy is very successful due to two party system. The main advantage of the two-party system is that in it the formation of ministry is very easy. In a two party system the government is stable and responsible.

In India multi-party system exists. Upto 1967 In-dian politics was dominated by Congress Party. But after 1967 gradually coalition politics developed. After 1989 Coalition Government is the main feature of Indian party system. Election Commission recognised Seven National Parties and 59 State or regional par¬ties. Present party system is working very successful in India. The present party system in India has following advantages :

1. Representation to all shades of opinion. An important advantage of present party system is that in the legislature all shades of opinion get represen-tation. In India there exists various political parties w hich represent different section of people or different shades of opinion.

2. More Choice to the Voters. In India due to multiple party system voters enjoy a greater degree of independence and choices because so many political parties contest the election.

3. Cultural Pluralism, The present party system is the best because in India there exist several distinct cultural-ethnic religious—linguistic caste groups. Two party system cannot satisfy the different cultural groups. The tridity inhabiting North-Eastern regions, for instance do not identify themselves with the National Parties. Instead they have real sympathy for the regional parties.

4. Satisfy Regional Feelings and Aspirations. Present party system satisfies regional feelings and aspirations of the people. In fact, regional parties contribute to the strengthening of the federalism while underscoring the need for fulfilling the regional aspirations.

Question 8.
Read the passage and answer the questions below :
‘Party politics in India has confronted numerous challenges. Not only has the Congress system destroyed itself, but the fragmentation of the Congress coalition has triggered a new emphasis on self-representation which raises question about the party system and its capacity to accommodate diverse interests An important test facing the policy is to evolve a party system of political parties that can effectively articulate and aggregate a variety of interests Jaya Hasan.

(a) Write a short note on what the author calls challenges of the party system in the light of what you have read in this chapter.
(b) Given an example from this chapter of the lack of accomodation and aggregation mentioned in this passage,
(c) Why is it necessary for parties to accommodate and aggregate variety of interests?
Answer:
(a) The Party system in India has confronted numerous challenges. Not only has the Congress

Detailed, Step-by-Step NCERT Solutions for Class 12 Political Science Chapter 17 Regional Aspirations Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

Regional Aspirations NCERT Solutions for Class 12 Political Science Chapter 17

Regional Aspirations Questions and Answers Class 12 Political Science Chapter 17

Question 1.
Match the following : (Imp.)
A – B
Nature of Regional aspirations States
(a) Socio-religious identity – (i) Nagaland/Mizoram, leading to statehood.
(b) Linguistic identity and Chhattisgarh. – (ii) Jharkhand/tensions with centre.
(c) Regional imbalance – (iii) Punjab, leading to demand for statehood.
(d) Secessionist demands – (iv) Tamil Nadu,on account of tribal identity.
Answer:
(a) – (iii), (b) – (iv), (c) – (ii), (d) – (i).

Question 2.
Regional aspirations of the people of North-East get expressed in different ways. These include movements against outsiders, movement for greater autonomy and movement for separate national existence. On the map of the North-East, using different shades for these three, show the states where these expressions are prominently found.
Answer:

• Assam — Movement against outsider.
• Meghalaya — Movement for greater autonomy.
• Mizoram — Movement for Separate State.

.

Question 3.
What were the main provisions of the Punjab Accord ? In what way can they be the basis for further tensions between the Punjab and its neighbouring states ? (Imp.)
Answer:
Akali Dal is a regional party and holds a prominent place in Punjab politics. It is the only organisation representing the Sikhs. Punjab was reorganised on the basis of language on 1st November, 1966 and so the aim of Akali Dal to have Punjabi Suba was achieved. But Akali Dal was not happy as some Punjabi speaking areas were included in Haryana and Chandigarh was declared a Union territory. Sant Fateh Singh again started agitation to include Chandigarh and Punjabi speaking areas in Punjab. During 1970 a section of Akalis began to demand political autonomy for the region. In June 1984,

Mrs. Indira Gandhi carried out ‘Operation Blue Star’ code name for army action in the Golden Temple. Mrs. Indira Gandhi was assassinated on 31 October 1984 outside her residence by her sikh bodyguards. In Delhi and in many other parts of northern India violence took place against the sikh community. More than two thousand sikhs were killed in Delhi only.

After the death of Mrs. Indira Gandhi, Rajiv Gandhi became the Prime Minister of India. In July 1985 Prime Minister Rajiv Gandhi reached an agreement with Sant Harchand Singh Longowal, then the president of Akali Dal. This agreement is known as the Rajiv Gandhi-Longowal Accord or the Punjab Accord. The aim of the Punjab Accord to bring normalcy in Punjab. Main provisions of Punjab Accord were as follow :

• Chandigarh would be transferred to Punjab.
• To resolve border dispute between Punjab and Haryana, a commission would be established.
• A tribunal would be set up to decide the sharing of Ravi-Beas river water among Punjab, Haryana and Rajasthan.
• Armed Forces special powers action Punjab would be withdrawn.
• Those who are affected by militancy in Punjab would be given better treatment.

Question 4.
Why did the Anandpur Sahib Resolution become controversial ?
Answer:
During the 1970s a section of Akalis began to demand political autonomy for Punjab. In 1973 Akalis passed a resolution at their conference at Anandpur Sahib, in which demand for political autonomy was made. Anandpur Sahib resolution, as such constitutes a statement of the main principles, policies and programme of the Akali Dal. Anandpur Sahib resolution became controversial because resolution was passed in Gurmukhi Script.

Resolution was not very clear because some words can be interpreted in more than one ways. This confusion was made worst by different interpretations given by the leaders of various political shades and at times by the leaders of the Akali Dal itself. For moderates this resolution means merely more autonomy for Punjab whereas for some leaders it was a way of securing sovereignty for Punjab. Anandpur Sahib resolution spoke of the aspiration of the Sikh Qaum and declared its goal as attaining the bolbala i.e. dominance of the Sikh. However, this resolution has a very limited appeal among the Sikh masses.

Question 5.
Explain the internal divisions of the state of Jammu and Kashmir and describe how these lead to Multiple regional aspirations in that state.
Or
What is the Social and Political Composition of Jammu and Kashmir? Describe the roots of ‘Kashmir issue’ which compelled the Indian Government to maintain autonomy in this state. (Imp.) (C.B.S.E. 2016)
Answer:
Kashmir issue is a major issue of tension between India and Pakistan. The accession of Jammu and Kashmir to India was brought into being on 26th Oct. 1949, Article 370 was included in the Indian Constitution in order to satisfy the political aspiration of the people of Jammu and Kashmir. Article 370 gives special status to Jammu and Kashmir.

The state of Jammu and Kashmir has its own constitution, separate flag and separate law of citizenship. Article 370 is very important for the people of Jammu and Kashmir. Jammu and Kashmir comprises three social and political region i.e. Jammu, Kashmir and Ladakh. Kashmir Valley is the heart of Kashmir region and this region is dominated by  Muslim Kashmiri.

Hindu Kashmiris are in a minority in Kashmir region. Jammu region is dominated by Hindu and Muslims are in a minority. Various languages are spoken in Jammu region. The Ladakh region is mountainous and population of this region is very small. The population of this region is almost equally divided between Buddhists and Muslims.

Separatist politics which surfaced in Kashmir from 1989 has taken different form and is made of various strands. Firstly, there are some separatists who want Kashmir as an Independent state. Secondly, there are some separatist groups who want merger of Kashmir with Pakistan. Thirdly, there are many groups who want greater political autonomy for the people of Kashmir within the Indians Union.

The idea of political autonomy for Jammu and Kashmir has greatly affected the people of Jammu and Ladakh. The people of Jammu and Ladakh often made complaints of their backwardness and neglect. Therefore, they demand autonomy for Jammu and Ladakh region within the state of Jammu and Kashmir. The demand for intro-state autonomy is as strong as the demand for state autonomy. On 5-6 August 2019, Article 370 was abrogated from Indian constitution Ladakh separate from J&K. Both J&K and Ladakh become Union territory. Therefor now in India there is 28 states and 9 union territories.

Question 6.
What are the various positions on the issue of regional Autonomy for Kashmir ? Which of these do you think are Justifiable ? Give reasons for your answer.
Answer:
The State of Jammu and Kashmir comprises three distinct geographical units i.e. Kashmir, Jammu and Ladakh. Maharaja Hari Singh signed the Instrument of Accession on 26 October, 1947 and thus Jammu and Kashmir became a part of India. The Maharaja offered to accede on three subjects.

The ‘Kashmir issue’ is merely a dispute between India and Pakistan. This issue has external and internal dimensions. It involves the issue of Kashmiri identity known as Kashmiriyat and the aspiration of the people of J & K for political autonomy. Kashmir’s representative made it clear in the Constituent Assembly that Kashmir’s associations with India would be based only on the terms of the instrument of accession.

Article 370 is included in the Indian Constitution in order to satisfy the political aspirations of the people of Jammu and Kashmir. Article 370 gives special status to Jammu and Kashmir. Sardar Patel declared in the Indian Constituent Assembly, “In view of the special problem with which the Jammu and Kashmir government is faced we have made special provisions for the continuancy of the state with the Union on existing basis.

“The state of Jammu and Kashmir has its own Constitution, separate flag and separate law of citizenship.” Moreover, the Control of the Union Government over the state of Jammu and Kashmir is not as effective at it is in other states. Changes in Article 370 can be made by the Parliament but with the consent of the government of Jammu and Kashmir.

Two opposite Views —This special status to Jammu and Kashmir has provoked two opposite reactions. One view is that Article 370 should be scrapped and should be removed from the Constitution whereas certain people favour retaining Article 370 in the Indian Constitution. Another view is that the ‘Autonomy’ conferred by Article 370 is not enough.

Mostly Kashmiris are demanding ‘Restoration of Autonomy’ or ‘Greater State Autonomy’.Which of the View is Justifiable ? In our opinion special status given to Jammu and Kashmir under Article 370 should be maintained due to following reasons :

1. Scrapping of Article-370 would be a breach of faith not only with the leaders of Jammu and Kashmir ; particularly leaders of National Conference, but also with the Constituent Assembly of the state and the people of Jammu and Kashmir.

2. Article-370 can be scrapped only by the method of amendment in the Indian Constitution which is not so easy because National Parties like Indian National Congress, CPI and CPM favour the retention of Article-370. Thus, the scrapping of Article-370 is unrealistic.

3. The best way to delete Article 370 is to persuade and convince the people of Jammu and Kashmir. So that the demand for scrapping Article 370 comes from the people of Jammu and Kashmir.

4. Article-370 had made it easy to deal with Maharaja Hari Singh of Jammu and Kashmir, the problem of contents of accession, Sheikh Abdullah Leader of National Conference and with the problem of demand for plebicite.

5. With the passage of time many parts of the Indian Constitution particularly part-I, II, III and the Preamble are applicable to Jammu and Kashmir with certain modification.

6. Under-IV Amendment Act 1963 of the Constitution of Jammu and Kashmir the judges of the High court can be transferred from one state to the other state.

7. The Supreme Court of India is supreme and final court for the people of Jammu and Kashmir. Supreme Court exercises the same jurisdiction in Jammu and Kashmir as in other states.

8. By Sixth Amendment Act 1965 Sadar-i-Riyasat came to be known as Governor where as Prime Minister of Jammu and Kashmir was disignated as Chief Minister.

9. Article-356 and 357 of the Indian Constitution have been extended to Jammu and Kashmir.

10. The financial relations between the Union and Jammu and Kashmir are the same as those between the union and other states.

11. Moreover, the state of Jammu and kashmir has a separate constitution and separate flag.On the basis of the above discussion regarding article-370 it is clear that the Jammu and Kashmir is an integral part of India but it enjoys special status and a unique position in the Indian Constitution. Under the present circumstances it is not easy to scrap or to delete Article-370.

It is only possible when political parties and people of Jammu and Kashmir demand the scrapping of Article-370. On 5-6 August 2019, Article 370 was abrogated from Indian constitution. Ladakh separate from J&K. Both J&K and Ladakh becomeUnion territory. Therefor now in India there is 28 states and 9 union territories.

Question 7.
The Assam Movement was a combination of cultural pride and economic backwardness. Explain. (Imp.)
Or
Assam Movement was a combination of cultural pride and economic backwardness. Justify the Statement.
Answer:
It is a hard fact that Assam Movement was a combination of cultural pride and economic backwardness. This can be justify on the basis of following facts :

1. The large scale migration into the North-East gave rise to a unique problem i.e. the local people pitted against outsiders or migrants. In many states of North-East local people started political and social movements against the outsiders because outsiders not only affect their culture but also exploit the natural resources for their benefits.

2. The Assam Movement from 1979 to 1985 is the best example of such movements against ‘outsider’. The foreigners against whom this agitation was directed were mostly migrant workers who had come in search of jobs from Bangladesh. The main contention of the agitators was that unless the foreigners were checked the state would be swamped by immigrants and the cultural identity of the state would be lost.

3. The Assamese felt that unless these foreign nationals are detected and deported they would reduce the indigenous Assamese into minority. Besides this, there were economic problems also due to foreigners. In Assam there was unemployment and poverty and Assamese considers foreigners responsible for economic problems.

4. In 1979 the All Assam Students Union (AASU), not affiliated to any party, led anti-foreigner movement. Students agitators insisted that the poll should be held only after the foreigners names are removed from the electoral rolls. They even prevented the candidates from filling their nominations.

5. The agitators demanded that all outsiders who had entered the state after 1951 should be sent back. The movement tried to blockade the movement of trains and supply of oil from Assam to refineries in Bihar.

6. Prime Minister Rajiv Gandhi made serious efforts to solve the problems of foreigners. Negotiations took place in March, 1985. In these talks AASU (All Assam Students Union) adopted a realist approach and ultimately an agreement was signed on 15 August, 1985, by the Assam agitation leaders and Union Home Affairs Secretary.

Under this agreement the base date for detention and deletion of foreigners was fixed as 1 January, 1966. All the persons who came to Assam after 1 January, 1966 and before 24 March, 1971 were to be detected in accordance with the Foreigners Act, 1946.

The names of all such persons were to be deleted from the voters lists for ten years and thereafter these names were to be restored in the voters lists. All foreigners who came to Assam on or after 25 March, 1971 were to be detected and expelled. The agreement envisaged constitutional, legislative and administrative safeguard for the protection of the social, cultural and linguistic heritage of Assam.

The Government agreed tio take proper steps for the economic development of Assam. Assam Assembly elections were held in December 1986. Assam Gana Parishad (AGP), a party formed by the leader of AASU and Assam Gana Sangram Parishad, emerged victorious and formed government under Profulla Kumara Mahanta.

Question 8.
All regional movements needs not lead to separatist demands. Explain by giving examples from this chapter.
Answer:
There is a great reality that all regional movements need not lead to separatist demands. The inhabitants of Mizo Hills in Assam demanded secession from the Indian Union and established Mizo National Front to get their demand conceded. The Mizos organised armed agitation and commenced guerilla warfare. The MNF was banned during Chinese aggression.

The government, keeping their aspirations in view decided to make Mizo hills area a Union Territory, which was inaugurated by the Prime Minister Smt. Indira Gandhi on 21st January, 1972. It was named Mizoram. However, Mizos headed by Laldenge were not satisfied with this arrangement. Ultimately in 1986, a peace agreement was signed between Prime Minister Rajiv Gandhi and Laldenge. Under this agreement Mizoram was elevated from the status of a Union territory to be the 23rd state of India. Laldenge was made the Chief Minister of Mizoram.

Question 9.
Regional demands from different parts of India examplify the principle of unity with diversity. Do you agree ? Give reasons.
Answer:
We fully agree with the view expressed in this statement that regional demands from different parts of India examplify the principle of Unity with diversity. Following agruments support this view :

1. Regional Aspirations are part of Democratic System. India is a largest democratic country in the world. To make democratic system successful
it is essential that India should deal with regional aspirations on a regular basis because expression of regional aspirations is not a abnormal phenomenon. Even in small countries peoples are having regional aspirations.

2. Best Way. Democratic negotiations is the best way to respond to regional aspirations. Suppression of regional aspirations is not in the interest of Nation Unity. For example, Mizoram problem was solved by Prime Minister Indira Gandhi through negotiations.

3. Power Sharing. Regional aspiration can be fulfilled by sharing power. Every region should have an important role in deciding the destiny of the nation and to achieve this objective it is essential that regional parties or groups or leaders should share powers at the state level and even at the Centre.

4. Regional Imbalance in Economic Development. Regional inbalance in economic development contributes to the feelings of regional discrimination. In India regional imbalance has encouraged regional movements. For example, Assam movement on the issue of foreign nationals is the result of regional imbalance.

If some states economically developed rapidly and some states remain backward and poor, it leads to regional imbalance and inter-regional migration. People of backward states have lost faiths in democracy and they follow the path of agitations, protests, movements etc.

5. Wisdom and Farsightedness of the Makers of Constitution. Framers of Indian Constitution were not only wise but farsighted also in dealing with problem of diversity. Federal system is adopted with flexibility. Moreover, special provisions are mentioned in the Constitution to satisfy the regional aspiration.

For example, the Sixth Schedule of the Constitution allows different tribes, complete autonomy of preserving their culture and customary laws. These provisions have proved very useful in resolving political problems of North-East. Special status is given to Jammu and Kashmir under Article 370 of the Constitution. We can conclude very safely that regional demands from different parts of India examplify the principle of unity with diversity.

Question 10.
Read the passage and answer the questions below : (Imp.)

One of the Hazarika’s songs ………………. dwells on the Unity theme, the seven states of north-eastern India become seven sisters born of the same mother ………… Meghalaya went own way ……………….. Arunachal too separated and Mizoram appeared in Assam’s gateway as a groom to marry another daughter ………………. .The song ends with a determination to keep the unity of the Assamese with other smaller nationalities that are left in the present day Assam ………………………….. . The Karbis and the Mising brothers and sisters are our dear ones ……………… SANJIB BARUAH.

(a) Which Unity is the poet talking about ?
(b) Why were the States of North-East created separately out of the erstwhile state of Assam.
(c) Do you think that the same Theme of Unity could apply to all the regions of India ? Why ?
Answer:
(a) The poet is talking of Unity of North-East. This region now consists of seven states also referred to as ‘seven sisters’.
(b) The states of North-East created separately out of the earstwhile state of Assam due to following factors.

• To maintain the cultural indentity of the people of particular area. Demands for political autonomy arose when the non-Assamese felt that the Assam government was imposing Assamese language on them.
• These states were created for their economic development.

(c) In our opinion for the growth of nation it is essential that the same theme of Unity should also apply to all the regions of India.