Question Answers Class 11 Chapter 5 Economics Maharashtra Board

Rural development in India

EXERCISE

Q. 1. Complete the following statements:

1. Rural credit system assumes importance because b) savings are inadequate to finance farming and other economic activities.

2. Productive loans are economically justified because a) they are related to agricultural production.

3. Small farmers are unable to access rural credit provided by banks due to c) high transaction costs.

5. The rights of socially disadvantaged groups can be safeguarded through b) proper enforcement of law and order.

6. The quality of life of the rural people can be improved by a) providing safe drinking water, health and hygiene facilities.

Q. 2. Choose the wrong pair:

(i)

The wrong pair is: 2) Medium-term – to meet expenditure on marriages.
Explanation: Medium-term credit is for purposes like buying cattle or agricultural equipment, not for unproductive purposes like marriages.

(ii)

The wrong pair is: 1) Agricultural sector – Banking and Insurance.
Explanation: Banking and Insurance belong to the service sector, not the agricultural sector.

Q. 3. Assertion and Reasoning questions :

1) Assertion (A) : Indian economy is pre-dominantly rural economy
Reasoning (R) : As per 2011 census, the country’s rural population is almost 83.25 crore (68.8% of total population)
Options : 1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of A.
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

Answer : Option 3) Both (A) and (R) are True and (R) is the correct explanation of (A).

2) Assertion (A) : Literacy is a powerful instrument of socio-economic change.
Reasoning (R) : Empowerment of women helps to reduce gender disparity.
Options : 1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

Answer: Option 4) Both (A) and (R) are True but (R) is not the correct explanation of (A).
Explanation: While both statements are true, empowerment of women is a separate aspect and not directly explanatory of literacy’s role in socio-economic change.

3) Assertion (A) : Agricultural credit is mostly for unproductive purposes.
Reasoning (R) : Agricultural credit is an important pre-requisite for agricultural growth.
Options : 1) (A) is true, but (R) is false
2) (A) is False, but (R) is True
3) Both (A) and (R) are True but (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

Answer: Option 2) (A) is False, but (R) is True.
Explanation: Agricultural credit is primarily for productive purposes like purchasing seeds or equipment, not mostly for unproductive purposes.

4) Assertion (A) : Non-institutional finance forms an important part of rural credit.
Reasoning (R) : Small farmers are unable to access bank credit because of borrower unfriendly products.
Options : 1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of A
4) Both (A) and (R) are True, but (R) is not the correct explanation of A

Answer: Option 3) Both (A) and (R) are True and (R) is the correct explanation of (A).

Q. 4. Identify and explain the concepts from the given illustrations:

1. Kusumtai knowingly set up her business enterprise in the rural area so that people living there could be gainfully employed.
Concept: Rural Industrialization
Explanation: Setting up a business in a rural area to provide employment opportunities aligns with the development of the industrial sector, specifically rural industries, which promotes economic growth and job creation.

2. Raoji purchased a new tractor for his farm by taking a loan.
Concept: Long-term Agricultural Credit
Explanation: Purchasingburying a tractor is a capital investment requiring a loan for more than 5 years, classified as long-term credit, used for productive purposes to enhance agricultural productivity.

3. Subsidized credit is provided by banks to small farmers for purchase of high yielding variety (HYV) seeds.
Concept: Productive Short-term Credit
Explanation: Subsidized credit for HYV seeds is a short-term loan (up to 2 years) aimed at increasing agricultural production, a productive use of credit.

4. Damaji borrows loan from a credit society established in the village this season rather than taking it from a moneylender.
Concept: Institutional Credit
Explanation: Borrowing from a village credit society, such as a Primary Agricultural Credit Society (PACS), represents access to institutional credit, which is more affordable and regulated compared to non-institutional sources like moneylenders.

5. Ramraoji takes a loan from the bank for a period of ten years subject to terms and conditions for the purpose of irrigated farming.
Concept: Long-term Productive Credit
Explanation: A 10-year loan for irrigated farming is a long-term credit used for productive purposes, such as installing irrigation systems to improve agricultural output.

Q. 5. Read the following passage carefully and answer the questions given below:

1. Explain in short Mahatma Gandhi’s views on rural development.
Mahatma Gandhi believed that the development of India is incomplete without the development of its villages, as they are the backbone of the nation. He emphasized self-reliance and village-centric development for national progress.

2. Highlight the role of the government in achieving rural development.
The government plays a crucial role by implementing plans and policies for rural development, promoting decentralization through the Panchayati Raj system, and ensuring effective governance at the village level to converge development interventions.

3. What measures have been suggested to achieve rural development.
Suggested measures include strengthening the Panchayati Raj system for self-governance, learning from successful ‘Model villages,’ and addressing social issues like education inequalities to improve literacy and enable marginalized groups to participate in decision-making.

4. Express your idea of a ‘Model Village’.
A ‘Model Village’ is a self-sufficient community with access to basic infrastructure like clean water, electricity, and roads. It has quality education and healthcare facilities, promotes sustainable agriculture, supports rural industries, and ensures inclusive participation through effective local governance, reducing poverty and inequality.