RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Rajasthan Board RBSE Class 11 Economics Chapter 16 Economic Planning

RBSE Class 11 Economics Chapter 16 Text book Questions

RBSE Class 11 Economics Chapter 16 Objective Type Questions

Question 1.
Who was the chairman of the National Planning Committee?
(a) Sir M. Visvesvaraya
(b) Deen Dayal Upadhyay
(c) Jawaharlal Nehru
(d) Feroze Shah Mehta
Answer:
(c) Jawaharlal Nehru

Question 2.
Planning Commission was established in the year
(a) 1950
(b) 1949
(c)1951
(d) 1952
Answer:
(a) 1950

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 3.
The period of Plan Holiday was
(a) 1965-68
(b) 1966-69
(c) 1967-70
(d) 1964-67
Answer:
(b) 1966-69

Question 4.
The Chairman of Planning Commission is
(a) Vice President
(b) Prime Minister
(c) Finance Minister
(d) Commerce Minister
Answer:
(b) Prime Minister

Question 5.
The period of Eighth Five Year Plan was
(a) 1990-95
(b) 1991-96
(c) 1992-97
(d) 1993-98
Answer:
(c) 1992-97

Question 6.
The wrongly-matched pair in the following is
(a) Public Plan – 1944
(b) Sarvodaya Plan – 1950
(c) Bombay Plan – 1945
(d) Planning Committee – 1938
Answer:
(c) Bombay Plan – 1945

RBSE Class 11 Economics Chapter 16 Very Short Answer Type Questions

Question 1.
Who is called the Father of Indian Planning?
Answer:
Sir M. Visvesvaraya.

Question 2.
Who has described economic planning in his book “Planned Economy For India”?
Answer:
Sir M. Visvesvaraya.

Question 3.
What do you mean by growth?
Answer:
The increase in the production capacity of the goods and services in the country is called growth.

Question 4.
What is a perspective plan?
Answer:
20 year Long-term Plan called is perspective plan.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 5.
On which model was the second five year plan based?
Answer:
Mahalanobis model.

Question 6.
In which five-year plan was the ‘Garibi Hatao’ slogan given?
Answer:
Fifth five year plan.

Question 7.
What was the title statement of the eleventh five year plan?
Answer:
Accelerated growth and more inclusive development.

Question 8.
What is the full name of NITI aayog?
Answer:
National Institute for Transforming India.

Question 9.
Who has been appointed the first vice-chairman of the NITI Aayog?
Answer:
Dr. Arvind Panagariya from Rajasthan.

Question 10.
Mention the long-term objectives of the eleventh five year plan.
Answer:
Basically, growth, full employment, equality, self-dependence, modernisation, etc.

Question 11.
In which five year plan were the targets of state-wise development fixed?
Answer:
Twelfth five year plan.

RBSE Class 11 Economics Chapter 16 Short Answer Type Questions

Question 1.
What is meant by economic planning?
Answer:
Economic planning implies the method in which central planning officials implement economic programmes and policies to achieve preplanned objectives within a definite time period keeping in mind the resources of country.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 2.
Describe the historical aspect of Indian Planning.
Answer:
A 10 year plan was made in 1934 for the first time by Sir M.Visvesvaraya. He has described economic planning in his book “Planned Economy for India”. He is also called the Father of Indian planning. In 1944, eight industrialists from Mumbai came together and prepared a 15 year “Bombay Pain” which was also called “Tata Birla Plan”. Apart from this, revolutionary leader M.N.Roy created the Jana Yojna in 1944 and socialist leader Jaiprakash Narayan put forth the ‘Sarvodaya Plan’ in 1950. National Planning Committee was formed before independence in 1950 under the chairmanship of Jawahar Lai Nehru and the Planning Commission was formed in 1950. After that, the targets of five year plans, twenty year long-term plan or perspective plan were also fixed. ‘

Question 3.
Describe the eleventh five-year plan in brief.
Answer:
The tenure of the eleventh five year plan was from 2007-2012. The objective of this plan was to increase the growth rate to 9 per cent and to increase it to 10 per cent by the end of the plan period. The main objective of this plan was more accelerated and more inclusive development. For this purpose, 27 major targets were fixed in the plan which were divided into 6 main classes :

  1. Poverty
  2. Education
  3. Healthcare,
  4. Women and Children,
  5. Basic Infrastructure
  6. Environment. In this plan, new priorities were set for the public sector. Of the total expenditure, maximum expenditure was done on services (32.6%).

Question 4.
Which basic minimum services Were emphasized upon in the ninth five year plan?
Answer:
The tenure of ninth five year plan was from 1997 to 2002. The main objective of this plan was to ensure the availability of seven basic minimum services. These included :

  1. Pure drinking water.
  2. Availability of primary healthcare services.
  3. Primary education for all.
  4. House for the homeless people.
  5. Nutritional food for children.
  6. Roads for every village and colony.
  7. Improving Public Distribution System.

Question 5.
What do you understand by ‘plan holiday’?
Answer:
India had to bear the brunt of wars with China in 1962 and with Pakistan in 1965. That plans devaluation of currency created a state where the fourth five year plan could not be started in time. Due to the above reasons, three one year plans were made (1966-69) which is known as Plan holiday in the history of economic planning.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 6.
What do you mean by “Rolling Plan”?
Answer:
Under Rolling Plan, plans for every year are adjusted and three plans are formed for each year according to the changing circumstances. One plan is for the current year, another for the short term and third for the long term.

Question 7.
What is meant by Mixed Economy?
Answer:
Under mixed economy, an economy is run by the public sector along with private ownership of the factors of production and independent activities of market powers. In this type of economy of the private sector exists along with the public sector.

Question 8.
Mention the functions of National Development Council.
Answer:
The functions of National Development Council are :

  1. Defining the guiding formula for formation of National planning and resources.
  2. To discuss the National plan prepared by the Planning Commission and give it a final shape.
  3. To deliberate upon important questions concerning the social and economic policies affecting national development.
  4. To review the implementation of plans from time-to-time.

Question 9.
The Planning Commission was dissolved and the NITI Aayog was formed in its place. What was the need of this?
Answer:
In the changing scenario of the world, the need was felt to provide more autonomy to the states so that the states may form developmental policies as per their respective needs and proceed ahead on the path of development. For this reason, the central government dissolved the Planning Commission and established the NITI Aayog on 1st January 2015 in its place.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

RBSE Class 11 Economics Chapter 16 Long Answer Type Questions

Question 1.
Describe the twelfth five year plan.
Answer:
The period of twelfth five-year was decided to be from April 1, 2012 to March 31, 2017. The main objective of this plan is ‘faster, sustainable and more inclusive growth. The target of achieving the average growth rate of GDP at 9% was fixed. In order to achieve the target, 25 basic indicators have been fixed, out of which major are given below :

  1. Achieving a GDP growth rate of 8% which was earlier fixed at 8.2%.
  2. Achieving 4% growth rate in agricultural sector.
  3. Achieving a growth rate of 10% in manufacturing sector.
  4. Achieving a decline of 10 basis points in Consumption Poverty by the end of the plan.
  5. An average growth rate higher than the 11th five year plan was fixed for every state.
  6. Creation of 5 crore new employment opportunities in non-agricultural sector.
  7. A target of increasing the average schooling years to 7 years was fixed.
  8. Reducing the Infant Mortality Rate (IMR) to 25 and reducing the Material Mortality Rate (MMR) to 1 on every 1000 live births.
  9. Improving the Child Sex Ratio to 950 by the end of the plan.
  10. Reaching the Total Fertility Rate (TFR) to 2% by the end of the plan.
  11. Increasing the investment in infrastructure to 9% of GDP.
  12. Increasing the total irrigated area from 90 million hectare to 103 million hectare by the end of the plan.
  13. Increasing 1 million hectare green cover per year under agriculture.
  14. Providing banking services to 90% of the house holds.

The highest allotment of the total plan expenditure in the Twelfth Five Year Plan has been made for social services, which is 32.6%. Agricultural sector has been given the second priority. Equality among all the sections for poverty elimination, class equality, regional equality, equality in empowerment have been accepted in the concept of inclusion. For sustainable growth, attention has been paid to the detrimental effects of environmental pollution and greenhouse gases on climate change.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 2.
Describe the NITI Aayog in detail.
Answer:
The need was felt for providing more autonomy to states in conformity to the changing economic scenario of the world, so that the states could also shape their developmental plans in accordance with their requirements and move forward. The central government took a step in this direction, and dissolved the planning commission. It established the Niti Aayog on January, 2015.

The NITI Aayog is a think-tank which takes decisions on policy-related matters and makes the states an equal participant in the construction and deciding of policies. The ex-officio chairman of NITI Aayog is the prime minister. Additionally, a vice- chairman and all the members would be full time, the maximum number of part time members will be 2, honorary members will be 4 who will be selected from among the cabinet by the Prime Minister.

  1. Members of executive/administrative council (in this, chief ministers of states and Lieutenant- governors of Union territories) and members of regional councils are included.
  2. Dr. Aravind Panagariya from Rajasthan was appointed the first vice-chairman of the NITI Aayog.

The NITI Aayog will work on the principles of ‘Antyodaya’, integration, village, population benefits, cooperation, administration and sustainability. We can explain the functions of NITI on the basis of following points :

  1. Establishing such an administrative system in which the role of the government is that of an enabler.
  2. The NITI Aayog will work on the principle of cooperative and competitive federalism.
  3. The NITI Aayog will resolve various challenges by establishing harmony between the centre and the states and between different ministries.
  4. It will ensure the vital and effective role of India in global conferences.
  5. It will utilize the entrepreneurship capacity and scientific and intellectual skills of India.
  6. It will remove caste based inequalities, economic inequalities and gender inequalities.
  7. The NITI Aayog will provide advice in designing policies and programmes for the centre and the states.
  8. The NITI Aayog will monitor and evaluate the policies and programmes executed by the government.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 3.
Describe the long-term objectives of economic planning.
Answer:
A time span of 20 years has been designated for describing the long term objectives of economic planning. These are as follows:
i. Growth :
The increase in the inflation-adjusted market value of the goods and services. Example- Machines, Tools, Banking, transport, etc. All the Indian Five Year Plans have given primary importance to higher growth of real national income. In economic vocabulary, growth implies continuous growth in GDP, which is obtained from various sectors of the economy. These sectors include primary sector, secondary sector and tertiary sector. As the economy, develops, the contribution of primary sector keeps decreasing while the contribution of secondary and tertiary sectors keep increasing.

ii. Full employment :
Another objective of the plans is better utilization of man power resource and increasing employment opportunities. Measures have been taken to provide employment to millions of people during plans. This is a social objective of five year plan, which implies that both rich and poor sections should have equal participation in development, because unemployment leads to emergence of various evils in the society, like theft, loot, terrorism etc.

iii. Equality :
If the benefits of economic growth are enjoyed by a handful of people, then this growth is meaningless. In such a situation, the rich class will become richer and poor will become poorer, which, in turn, would create situations of conflict. Thus, economic equality has been made an important objective of planning. Only then, growth, self dependence, modernization will fructify and be realized as a target.

iv. Self Reliance :
Self reliance implies that dependence on foreign goods should be as minimum as possible. For accelerating the process of industrialization, we had to import capital goods in the form of heavy machinery and technical know-how. For improving infrastructure facilities, like roads, railways, power, etc. We had to depend on foreign aid to raise the rate of our investment. As excessive dependence on foreign goods may lead to economic colonialism, the planners rightly mentioned the objective of self-reliance from the Third Plan on wards. In the fourth plan, much emphasis was given to self-reliance, specially in the production of food grains. In the fifth plan, our objective was to earn sufficient foreign exchange through export promotion and import substitution.

v. Modernization :
Modernization aims at improving the standard of living of the people by adopting a better scientific technique of production, by replacing the traditional backward ideas, by logical reasoning and bringing about changes in the rural structure and institutions.

These changes aim at increasing the share of industrial output in the national income, upgrading the quality of products and diversifying the Indian industries. Further, it also includes expansion of banking and non-banking financial institutions to agriculture and industry. Modernization, research and development were emphasized important aims in the sixth five-year plan.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 4.
Give an introduction of the five year plans before 1990.
Answer:
Before 1990, seven five year plans had been executed and their introduction is given below:
i. First five year plan :
The period of the first five-year plan was from 1951 to 1956, which mainly focused on the development of the agricultural sector. This plan envisaged the removal of instabilities created by the partition of the country and the Second World War. The top priority in this plan was to increase agricultural productivity. In order to achieve these objectives, special emphasis was laid on developing and extending the means of transportation and communication and arrangement of irrigation facilities. Maximum resources were made available for transportation and communication system under this plan, which was 26.4 per cent of the total plan expenditure.

ii. Second five year plan :
The tenure of second five year plan was from 1956 to 1961. The main objective of this plan was to adopt such schemes that could establish an equitable social system, reduction of inequalities in income and wealth and a more even distribution of economic power. This plan particularly aimed at the development plan of the public sector and rapid industrialization. About 20.1 per cent of the total resources were spent on industries and mining. Other important objectives included sizeable increase in national income so as to raise the level of living in the country, rapid industrialization, with particular emphasis on the development of basic and heavy industries, a large expansion of employment opportunities, the development of iron and steel, non-ferrous metals, coal, cement, heavy chemicals and other industries was emphasized upon.

iii. Third five year plan :
The tenure of third five-year plan was from 1961 to 1956.Themain objective of this plan was to build a self-reliant and self-sustained economy, in order to achieve the target of continuous development. The immediate objectives of this plan were :

  1. An increase in national income of more than 5% annually.
  2. An increase in the agricultural produce and to achieve self-sufficiency by increasing food-grain production.
  3. Expansion of basic industries.
  4. Utilizing the country’s manpower resource to the maximum and ensuring significant growth in employment.

iv. Fourth five year plan :
The tenure of fourth five year plan was from 1969 to 1974. The action strategy of this plan was to achieve development and self reliance along with the stability. Maximum expenditure was allocated to transprotation and communication by allocated.

v. Fifth five year plan :
The tenure of fifth five-year plan was from 1974 to 1979. Its objective was to achieve poverty eradication and self- reliance. The slogan “Garibi Hatao” was given by Mrs. Indira Gandhi in 1975. Under fifth five-year plan, a special programme was launched for the poor section of the society. The Janata Party government came into power in 1977 and it initiated a rolling plan of the period 1978 to 1983 after concluding the fifth five year plan one year before its fixed tenure. Achievement of inflation control and economic stability was also given top priority. One of the basic objectives was to achieve 5.5 per cent annual growth in national income.

vi. Sixth five year plan :
The tenure of sixth five year plan was from 1980 to 1985. The main objective of this plan was to eradicate poverty. The maximum expenditure in this plan was done on energy sector, which was 28.1 per cent of total plan expenditure. The second priority was given to transport and communication. The average growth rate for this plan was fixed at 5.2 per cent.

vii. Seventh five year plan :
The tenure of seventh five year plan was from 1985 to 1990. The main objective of this plan was increase in employment, increasing production and productivity. The growth in food grain production was 3.23 per cent which was higher than previous years. The reason for this was favourable weather. Maximum expenditure (30.5%) was spent on energy sector.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 5.
Elaborate upon the achievements and failures of economic planning.
Answer:
Achievements of economic planning are as follows :
i. Growth of national income :

Plan Target Actual
First Plan 2.1 3.60
Second Plan 4.5 4.21
Third Plan 5.6 2.72
Fourth Plan 5.7 2.05
Fifth Plan 4.4 4.83
Sixth Plan 5.2 5.54
Seventh Plan 5.0 6.02
Eighth Plan 5.6 6.68
Ninth Plan 6.5 5.5
Tenth Plan 8.0 7.7
Eleventh Plan 9.0 7.9

It is clear from the above table that the development rate remained at an average of around 3.5 per cent in the first three five year plans, which was named ‘Hindu Growth Rate’ by Prof. Rajkrishna. The growth rate increased after the sixth five year plan, which was a favourable sign of development, but it again declined in the ninth five year plan. Growth rate has been the highest in the eleventh five-year plan.

ii. Development in Agricultural sector :
Agricultural productivity has also shown an upward trend during the plan period. The production of food grains which was 5.40 crore tonnes in 1950-51 increased to 26.48 crore tonnes in 2013-2014. Thus, food grain production witnessed a 5-fold increase. The growth rate in agricultural sector was 3.3 per cent in the Eleventh five-year plan as against the targeted growth rate of 4 per cent.

iii. Growth in Industries :
In the first five year plan, much of the capital was invested to develop industry and defence. Industrial production has increased to a great extent, but later on it began declining. In this duration, the production of iron and steel, aluminum, engineering goods, chemicals, fertilizers and petroleum products increased.

iv. Balance of payment :
During the plan period, more capital was needed for developmental policies, and as a result, deficit budget had to be made. This deficit increased continually, and to balance it, devaluation of currency was done, which had an adverse effect on the balance of payment. The trade deficit of India remained unfavourable in all years except for 1972-73 and 1976-77. The foreign exchange reserve increased in the planing period. In December 2015 it reached upto 351.62 billion dollar.

V. Life expectancy, which was 32 years in 1951 increased to 65 years in 2001.

vi. The basic economic structure and social structure developed speedily in the plan duration. Education system developed and rates of savings and investment also increased.

Shortcomings of Economic planning :
i. Failure in eradicating poverty :
The main strategy of socialist development adopted in the plan duration was to provide people with a minimum standard of living. For this purpose, various programmes were initiated in the five year plans, and “garibi hatao” programme was also launched in the fifth five year plan. But, even today, about 1/4th population of India lives below the poverty line. According to the 61 st round of NSSO, 26.1 per cent population lived below the poverty line in 1999-2000. According to Suresh. D. Tendulkar Committee report, country’s 37.2 per cent population lived below poverty line. According to the 68th Round, 21.9% population lived below the poverty line (BPL).

ii. Slow growth rate in employment :
Though many programmes of eradicating unemployment have been launched during the plan period, but all these programmes proved insufficient. The number of unemployed persons was 53 lakhs in the first plan, which increased to 7.49 millionin 1993-94 and 10.84 million in 2011-2012.

iii. Increase in inequality of income and wealth :
In planning, various solutions and methods were adopted for this, but all the studies brought out the conclusion that the rich class got more opportunities for economic development. Between 2004-05 and 2009-10, income inequality has increased in rural areas of 10 states and urban areas of 18 states.

iv. Inadequacy of industrial development :
Development of infrastructural industries in the country was given the highest priority in the second five year plan. But after this, the share of industries in total plan expenditure kept on decreasing, which obstructed the development of industries. The range of black economy also increased during the plan period. In the year 2008, it was calculated to be 640-7 billion dollars which was 50 per cent of the Gross Domestic Product of that year. But despite failures the economy has interested increase in GDP, per capita income, standard of living and rate of literary during the planning period.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

RBSE Class 11 Economics Chapter 16 Other Important Questions

RBSE Class 11 Economics Chapter 16 Objective Type Questions

Question 1.
Nature of Indian Economy is
(a) Communist
(b) Mixed
(c) Capitalist
(d) Socialist
Answer:
(b) Mixed

Question 2.
Which five year plan is functioning at present?
(a) Ninth
(b) Tenth
(c) Eleventh
(d) None of these
Answer:
(d) None of these

Question 3.
In the 10th five year plan, the target of economic development was fixed at
(a) 7%
(b) 8%
(c) 10%
(d) 12%
Answer:
(b) 8%

Question 4.
After independence, the income as a percentage of total national income has declined in which of the following sectors?
(a) Industry, construction, etc.
(b) Commerce, trade services
(c) Agriculture, mining, etc.
(d) None of these
Answer:
(c) Agriculture, mining, etc.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 5.
When did the twelfth five year plan end?
(a)2017
(b)2018
(c)2019
(d) None of these
Answer:
(a)2017

RBSE Class 11 Economics Chapter 16 Very Short Answer type Questions

Question 1.
Who is the director of the Planning Commission?
Answer:
Prime Minister

Question 2.
When did the process of economic planning begin in India?
Answer:
In 1951.

Question 3.
When was “Bombay Plan” formed?
Answer:
In 1944.

Question 4.
By which other name is “Bombay Plan also known as?
Answer:
Tata Birla Plan.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 5.
Who created the Jana Yojna and when?
Answer:
M.N.Roy created the Jana Yojna in 1944.

Question 6.
Who initiated the Sarvodaya Plan and when?
Answer:
Jaiprakash Narayan put forth the ‘Sarvodaya Plan’ in 1950.

Question 7.
When and under whose leadership was the National Planning Committee formed?
Answer:
In 1938, under the leadership of Jawaharlal Nehru.

Question 8.
When was the Planning Commission formed?
Answer:
In 1950.

Question 9.
Which Plan is known as the economic constitution of India?
Answer:
Second five-year plan.

Question 10.
The slogan “Garibi Hatao” was given by whom and when?
Answer:
Mrs. Indira Gandhi in 1975.

Question 11.
Which five-year plan had initiated “the minimum needs programme” for poor section of the society?
Answer:
Fifth five year plan.

Question 12.
Give the full form of NSSO.
Answer:
National Sample Survey Organization.

Question 13.
What is the period of the twelfth five-year plan?
Answer:
The period of the twelfth five-year was from April 1,2012 to March 31, 2017.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 14.
State the main objective of the twelfth five year plan.
Answer:
The main objective of this plan is ‘faster, sustainable and more inclusive growth”.

Question 15.
What was the targeted growth rate of GDP as fixed under the twelth five year plan?
Answer:
8%.

Question 16.
What is economic planning?
Answer:
Economic planning implies the method in which central planning officials implement economic programmes and policies to achieve pre-planned objectives within a definite time period keeping in mind the resources of country.

Question 17.
State the basic objectives of planning.
Answer:

  1. Increase in GDP and per capita income.
  2. Full employment.
  3. Judicial distribution or equality.
  4. Development of technical know how.
  5. Self-sufficiency.

Question 18.
What do you mean by socialism?
Answer:
Socialism is that system under which major economic decisions are taken by the government keeping in mind the social welfare of the society.

Question 19.
What is mixed economy?
Answer:
An economic system combining private and state enterprise. Example- Indian Economy.

Question 20.
What do you mean by economic growth?
Answer:
An increase in the amount of goods and services produced per person of the population over a period of time.

Question 21.
What is total employment?
Answer:
It implies that all those individuals who are capable and willing to work should be provided employment.

Question 22.
What do you mean by GDP?
Answer:
Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a year.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 23.
What is sustainable development?
Answer:
Economic development that fulfills the needs of the present generation without compromise the needs of the future generation.

Question 24.
What is Devaluation?
Answer:
The reduction in the official value of a currency in relation to other foreign currencies.

Question 25.
What is Inflation?
Answer:
Inflation is the rate at which the general level of prices for goods and services is rising, and consequently, the purchasing power of Currency is falling.

Question 26.
What is inclusive growth?
Answer:
Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty.

Question 27.
What did National Planning Committee suggest in 1938?
Answer:
The committee suggested that all infrastructural industries should be under state control and it set a target of doubling the living standard of people in the next ten years.

Question 28.
Why was Planning Commission formed?
Answer:
Planning Commission was formed to take India on the path of development.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 29.
What is “minimum needs programme”?
Answer:
This programme was initiated for the poor section of the society, which includes provision of basic education, water facility, better health facilities in villages, better transport services, etc.

Question 30.
What has been highlighted in the sixth five year plan?
Answer:
The maximum expenditure in this plan was done on energy sector that was 28.1 per cent of the total plan expenditure. The second priority was given to transport and communication. The average growth rate for this plan was fixed at 5.2 per cent.

Question 31.
What has been highlighted in the eighth five year plan?
Answer:
In the eighth five year plan, more emphasis was laid on human development. That is why, it provided priovity to provision of employment opportunities, population control, education, water facility, etc.

Question 32.
State two aims of ninth five-year plan.
Answer:
Two aims of ninth five year plan are :

  1. Increasing the rate of economic development, while keeping the prices stable.
  2. Population control.

Question 33.
State two aims of tenth five year plan.
Answer:
Two aims of tenth five year plan are :

  1. Reducing poverty ratio from 26 per cent to 21 per cent by the year 2007.
  2. To achieve 16.2 per cent growth rate in population in next ten years.

Question 34.
What aims were decided for the infant mortality rate and maternal mortality rate in the tenth five year plan?
Answer:
Reducing infant mortality rate from 72 in 1999-2000 to 45 in 2007 and to reduce the maternal mortality rate from 4 in 1999-2000 to 2 in 2007.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 35.
What was the targeted growth rate in the eleventh five year plan?
Answer:
The targeted growth rate of development was fixed at 9 per cent which was to be increased to 10 per cent by the end of the plan.

Question 36.
State the basic aims of the eleventh five year plan.
Answer:
Mainly, 27 aims were suggested in this. Six of them are :

  1. Poverty
  2. Education
  3. Health care
  4. Women and children
  5. Basic infrastructure
  6. Environment.

Question 37.
State 4 achievements of fifth five year plan.
Answer:

  1. Growth in agricultural sector,
  2. Increase in National Income,
  3. Increase in industries,
  4. Life expectancy, which was 32 years in 1951 increased to 65 years in 2001.

Question 38.
State two aims of twelfth five year plan.
Answer:

  1. Increase in growth rate of GDP by 8%.
  2. Achieving the growth rate of 4% in agricultural sector.

Question 39.
What was the target of Infant Mortality rate and Maternal Mortality rate in the 12th five year plan?
Answer:
Reducing Infant Mortality rate to 25 and Maternal Mortality rate to 1 per 1000 live births.

Question 40.
What was the target of child sex ratio and total fertility rate in twelfth five year plan?
Answer:
Improving child ratio to 950 by the end of twelfth five year plan and bringing total fertility ratio to 2:1 towards the end of the plan.

Question 41.
What were the aims regarding infrastructure investment and total irrigation in the twelfth five year plan?
Answer:
Increasing infrastructural investment to 9 per cent of gross domestic product towards the end of the plan and increasing the total irrigated area from 90 million hectares to 103 million hectares by the end of the plan.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 42.
On which sectors was maximum expenditure targeted under the twelfth five year plan?
Answer:
The highest allotment of the total plan expenditure in the twelfth five year plan was made for social services, which was 32.6 per cent and the agricultural sector was at the second place.

Question 43.
State two important functions of Planning Commission.
Answer:

  1. Allocation of resources on priority basis in various phases of the plan.
  2. After the implementation of plans, evaluating them from time to time and providing suggestions.

Question 44.
What type of unit is the National Development Council?
Answer:
The National Development Council (NDC) is a non-statutory unit that works in the form of a link of integration between the Planning Commission and various states. It works as a guide and assists the Prime Minister and Chief Minister.

Question 45.
State two functions of National Development Council.
Answer:
Two functions of National Development Council are:

  1. Defining the guiding-formulae for formation of national plans and resources.
  2. To review the implementation of national plan and giving a final form to it formed by the Planning Commission from time to time.

Question 46.
State two functions of NITI Aayog.
Answer:

  1. Establishing such an administrative system in which the role of the government is that of an enabler.
  2. The NITI Aayog will work on the principle of cooperative and competitive federalism.

Question 47.
On what basis does the NITI Aayog function?
Answer:
The NITI Aayog functions on the principle of cooperative and competitive federalism. It will ensure the vital and effective role of India in global conferences.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

RBSE Class 11 Economics Chapter 16 Short Answer Type Questions

Question 1.
What is planning? Explain.
Answer:
Planning defines the way of the resources of the country are utilized. Planning sets both general and specific target, which have to be achieved within a specific time period. In India, Planning is done for five years, and therefore, they are called five-year plans. The document of these plans does not only reveal the objectives of 5 year plans, but also the objectives of the next 20 years are mentioned.

Question 2.
What do you understand by mixed economy?
Answer:
In the mixed model of economy there is an integration of public and private ownership of means of production.

Question 3.
What is a socialist economy?
Answer:
A socialist economic system is characterized by social ownership and operation of the means of production that may take the form of autonomous cooperatives or direct public ownership wherein production and distribution are aimed for prof it profit as well as social welfare.

Question 4.
State the difference between capitalist and socialist economy.
Answer:
In a capitalist economy, property and businesses are owned and controlled by individuals. In a socialist economy, the state owns and controls the major means of production.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 5.
When was first five year plan initiated in India? In between these five year plans, there were some one year plans also initiated. Explain them too.
Answer:
The First Five-year Plan was launched on 1st April, 1951 and it ended on 31st March, 1956. Various one year plans initiated between the five year plans are :

  1. Three annual Plans From 1st April 1966 to March 31st 1969.
  2. One year Plan from April 1st 1979 to March 31st 1980.
  3. Two yearly plans were decided from 1st April, 1990 to 31st March, 1992.

These annual plans were not an alternative to the five-year plans.

Question 6.
What is the sectoral constitution of any economy? Is it necessary that the service sector should contribute more than the others in the GDP of an economy? Explain.
Answer:
Sectoral Constitution of Economy :
Any economy is divided into 3 parts on the basis of sector :

  • Primary sector :
    This sector includes agriculture, animal husbandry, forestry, fisheries etc.
  • Secondary sector :
    This sector includes manufacturing and industries.
  • Tertiary sector :
    This sector includes banking, insurance, communication etc. services.

Agriculture has the biggest contribution in GDP in a developing economy, while it has the least contribution in a developed country. The contribution of tertiary i.e. the service sector is the highest in a developed economy. Expansion of banking, insurance, communication, etc. services in a country is an indicator of development. Therefore, the service sector should contribute the most in the GDP of an economy.

Question 7.
What do you mean by modernization?
Answer:
Modernization aims at improving the standard of living of the people by adopting a better scientific technique of production, by replacing the traditional backward ideas by logical reasoning and bringing about changes in the rural structure and institutions. These changes aim at increasing the share of industrial output in the national income, upgrading the quality of products and diversifying the Indian industries. Further, it also includes expansion of banking and non-banking financial institutions to agriculture and industry. It envisages modernization of agriculture including land reforms.

Question 8.
State the difference between economic growth and economic development.
Answer:
Economic Growth:
A condition in which there is continuous increase in national income and per capita income for a long-time period.
Economic Development :
It is that kind of growth which depicts the growth in income of people, society and nation as a whole. The objective behind this is society’s welfare along with economical growth.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 9.
Isn’t modernization and creating employment opportunities anti-reciprocal to planning?
Answer:
This is merely a confusion. The truth is that, in the form of planning, modernization and creating employment opportunities is not reciprocal but instead they are related to each other.

This can be explained in this way. Sure, modernization means less unit of labour required for production, but this should not be taken as reduction in employment.

Growth in productivity, would definitely result in the growth of production level and income level. Growth in income will result in more demand of products and services. Growth in demand would also result in growth in supply. Therefore, it eventually results in more employment opportunities. Apart from this, various structural changes are also found in the economy. For example, the agricultural sector transfers labour to the secondary and tertiary sectors of the economy.

Question 10.
Give a brief description of the objectives of respective five year plans as per the current requirements of the economy.
Answer:
Objectives of various five year plans :

  1. First Five Year Plan – growth in agriculture.
  2. Second Five Year Plan – growth in industrialization.
  3. Third Five Year Plan – self-reliant in food grain production.
  4. Fourth Five Year Plan – full use of manpower and stability in prices.
  5. Fifth Five Year Plan – to achieve poverty eradication and self- reliance.
  6. Sixth Five Year Plan – to eradicate poverty and provide structural empowerment to agriculture and industries.
  7. Seventh Five Year Plan – increase in employment.
  8. Eighth Five year plan – full employment and education for all programmes.
  9. Ninth Five year plan – to promote economic growth along with social justice.
  10. Tenth Five year plan – to improve the quality of living.
  11. Eleventh Five year plan – More accelerated and more inclusive development.
  12. Twelfth Five year plan – Faster, sustainable and more inclusive growth.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 11.
Explain in detail the first five Year Plan.
Answer:
The tenure of the First Five-year Plan was from in 1951 to 1956, which mainly focused in development of the agricultural sector. The top priority in this plan was to increase agricultural productivity. In order to achieve these objectives, special emphasis was laid on developing and extending the means of transportation and communication, and arrangement of irrigation facilities, which was 26.4 per cent of the total plan expenditure. This plan was successful in achieving its objectives. The target growth rate was 2.1% while the actual growth rate was 3.6%.

Question 12.
Explain in detail the Second Five Year Plan.
Answer:
The tenure of second five year plan was from 1956 to 1961. The main objective of this plan was to adopt such a system that could establish an equitable social system. The development of iron and steel, non-ferrous metals, coal, cement, heavy chemicals and other industries was emphasized. The plan was called economic constitution of India because of the strategy adopted in it. The model of this plan was the four- sector developmental model by Prof. P.C. Mahalanobis.

Question 13.
Explain in detail the Third Five Year Plan.
Answer:
The tenure of third year plan was from 1961 to 1956. The main objective of this plan was to build a self-reliant and self-sustained economy. Maximum expenditure was done on transportation and communication which was 24.6 per cent of total plan expenditure, so that a base could be provided to industrial and agricultural sector by developing basic infrastructure.

Question 14.
What were the immediate objectives of the third five year plan?
Answer:
The immediate objectives of the third five year-plan were :

  1. An increase in national income.
  2. An increase in the agricultural produce and to achieve self-sufficiency by increasing food grain production.
  3. Expansion of basic industries.
  4. Utilizing the country’s manpower resource to the maximum
  5. Ensuring significant growth in employment opportunities and reduction in inequality.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 15.
What were the immediate objectives of the fourth five year plan?
Answer:
The immediate objectives of the fourth five year plan were :

  1. Achieving price stability.
  2. Achieving self-reliance and reduction in foreign dependence.
  3. Providing employment opportunities to the weaker sections of the society.
  4. Expanding the industrial sector.
  5. Developing infrastructure.
  6. Promoting programmes providing equality and social justice.

Question 16.
Which things were taken into consideration in the fifth five year plan?
Answer:
Following things were taken into consideration in the fifth five year plan :

  1. To complete the plans which were started in the fourth five year plan and on going plans in the fifth five year plan.
  2. Proper utilization of resources.
  3. To achieve the minimum need objectives of core sectors.
  4. To achieve minimum level for poor sections of the society.

Question 17.
What was “minimum needs programme”?
Answer:
Fifth five year plan had initiated “the minimum needs programme” for the poor section of the society. This programme was initiated to include provision of basic education, water facility, better health facilities in villages, better transport services etc. to the poor section of the society.

Question 18.
Explain in detail the Sixth Five Year Plan.
Answer:
The tenure of the sixth five year plan was from 1980 to 1985. The main objective of this plan was to eradicate poverty. The maximum expenditure in this plan was done on energy sector which was 28.1 per cent of the total plan expenditure. The second priority was given to transportation and communication. The average growth rate for this plan was fixed at 5.2 per cent. The actual growth rate was 5.54%.

Question 19.
Explain in detail the Seventh Five Year Plan.
Answer:
The tenure of the seventh five year plan was from 1985 to 1990. The main objective of this plan was increase in employment, production and productivity. The growth in food grain production was 3.23 per cent which was higher than previous years. In this plan, the targeted growth rate was 5% while the actual growth rate was 6%.

Question 20.
Eighth five Year Plan could not start on time. Give details on this issue.
Answer:
Because of. swiftly changing political situation at the centre, the eighth five-year plan could not be implemented in time. The new government formed in June 1991 decided that the eighth five year plan would be starting from April 1,1992 and annual plans would be separately implemented for 1990-91 and 1991-92. Keeping in mind the eighth five year plan, these annual plans mainly emphasized on provision of maximum employment and social change.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 21.
Explain in brief Eighth Five Year Plan.
Answer:
The tenure of this plan was from 1992 to 1997. In the eighth five year plan, more emphasis was laid upon human development. So, priority was given to employment opportunities, population control, education, water facility, etc. In this plan, the maximum expenditure was done on energy sector which was 26.6 per cent of the total plan outlay. The growth rate in this plan was envisaged at 5.6 per cent while actual growth rate achieved was 6.5%.

Question 22.
Eighth five year plan focused on human development. Explain.
Answer:
In the eighth five year plan, more emphasis was laid upon human development, that is why priority was given to provision of employment opportunities, population control, education, water facility, food supply and development of infrastructure.

Question 23.
State major aims of ninth five year plan.
Answer:

  1. Increasing the rate of economic development, while keeping the prices stable.
  2. Population control.
  3. Helping the needy people of the society and to provide them with healthy, food and taking care of their health.
  4. Providing basic minimum services like- drinking water, primary health care facility, houses, roads, etc.
  5. Providing priority to agricultural and rural development for poverty eradication and for the creation of employment opportunities.

Question 24.
State the basic aims of tenth five year plan.
Answer:
The basic aims of tenth five year plan are :

  1. Reducing poverty ratio from 26 per cent to 21 per cent by the year 2007.
  2. To achieve 16.2 per cent growth rate of population in next ten years.
  3. Admitting all the children in schools by 2003 and completing 5 year schooling of all the children by 2007.
  4. Reducing gender inequality in literacy and labour to 50 per cent.

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

Question 25.
What were the targets of literacy rate, infant mortality rate and Maternal Rate in the 10,h five year plan?
Answer:
Increasing literacy rate to 75% by 2007, Reducing infant mortality rate from 72 in 1999-2000 to 45 in 2007 and to reduce maternal mortality rate from 4 in 1999-2000 to 2 in 2007.

Question 26.
What were the priorities decided for the public sector in eleventh five year plan?
Answer:
New priorities were decided for the public sector in eleventh five year plan. These priorities were related to starting programmes for ihfusing new energy in the industrial sector, constructing necessary basic infrastructure in rural areas, extending educational and healthcare facilities especially to people in rural areas, improving living standards of weaker sections and providing them more economic opportunities.

Question 27.
What development was achieved in the agricultural sector during the planning period?
Answer:
During the planning period of 62 years, the government spent more than 20 per cent of the total plan outlay on agriculture and irrigation in every 5 year plan. The food grain production increased from 5.40 crore tonnes in 1950 to 26.48 crore tonnes in 2013-14. Thus, food grain production witnessed a 5-fold increase. The projected growth rate in agricultural sector was 4 per cent in the Eleventh five-year plan while the actual growth rate was 3.3%. During the plan period increase was recorded in the net irrigated area, use of fertilizers, use of hybrid seeds, modernisation in agriculture, etc.

Question 28.
Explain the concept of inclusion and sustainability in twelfth five year plan.
Answer:
Poverty elimination, class equality, regional equality, equality in empowerment have been accepted under the concept of inclusion. Accepting the sustainability of environment under sustainability, attention has been paid on detrimental effects of environmental pollution and greenhouse gases on climate change.

Question 29.
When was National Development Council established? Explain its administrative structure.
Answer:
The government established the The National Development Council (NDC) on 6th August 1952. Its ex-officio chairman is the Prime Minister and its secretary is also the secretary of the Planning Commission. Its other members include chief ministers of states, all the members of the cabinet, administrators of union territories and members of the Planning Commission.

Question 30.
What did the finance minister say on the need on NITI Aayog?
Answer:
Emphasising on the need of NITI Aayog, the finance minister said, the suitability /utility of the 65-years old Planning Commission has ended. Its utility existed under the government- controlled economy, but it is no longer relevant in the present time. India is a diversified economy and its Various states are in different phases of economic development. All these states have their own strengths and weaknesses. In this context, there is no relevance for an economic organisation with a similar outlook. If we retain this type of system, India won’t be able to achieve competetive quality at the global level.”

RBSE Solutions for Class 11 Economics Chapter 16 Economic Planning

RBSE Class 11 Economics Chapter 16 Long Answer Type Questions

Question 1.
What is meant by economic planning? Explain briefly the development of economic planning in India.
Answer:
Economic Planning :
Economic planning implies the method in which central planning officials implement economic programmes and policies to achieve preplanned objectives within a definite time period keeping in mind the resources of the country.

According to Planning Commission :
“Economic Planning is providing the means according to the priorities on the development of country”.

Development of Economic Planning In India :

  1. A 10-year plan was made in 1934 for the first time by Sir. M.Visvesvaraya. He has described Economic planning in his book “Planned Economy for India”. That is why he is also called the Father of Indian Planning.
  2. In 1944, eight industrialists from Mumbai came together and prepared a 15 year “Bombay Plan” which was also called “Tata Birla Plan.”
  3. Apart from this, revolutionary leader M.N.Roy created the Jana Yojana in 1944, and socialist leader Jai prakash Narayan put forth the ‘Sarvodaya Plan’ in 1950.
  4. National Planning committee was started under Jawahar lal Nehru in 193 8.
  5. In order to take India ahead on the path of development after independence, ‘Planning Commission’ was formed in India in 1950. Five-year plans were formed after evaluating the natural and physical resources available in the country.
  6. In Indian planning, along with the forth coming five-year objectives, long-term objectives were also fixed for twenty years. This long-term plan is also known as Perspective Plan.

RBSE Solutions for Class 11 Economics