rural development case study class 12

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What Is a Case Study?

When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to learn all about case studies.

Deep Dive into a Topic

At face value, a case study is a deep dive into a topic. Case studies can be found in many fields, particularly across the social sciences and medicine. When you conduct a case study, you create a body of research based on an inquiry and related data from analysis of a group, individual or controlled research environment.

As a researcher, you can benefit from the analysis of case studies similar to inquiries you’re currently studying. Researchers often rely on case studies to answer questions that basic information and standard diagnostics cannot address.

Study a Pattern

One of the main objectives of a case study is to find a pattern that answers whatever the initial inquiry seeks to find. This might be a question about why college students are prone to certain eating habits or what mental health problems afflict house fire survivors. The researcher then collects data, either through observation or data research, and starts connecting the dots to find underlying behaviors or impacts of the sample group’s behavior.

Gather Evidence

During the study period, the researcher gathers evidence to back the observed patterns and future claims that’ll be derived from the data. Since case studies are usually presented in the professional environment, it’s not enough to simply have a theory and observational notes to back up a claim. Instead, the researcher must provide evidence to support the body of study and the resulting conclusions.

Present Findings

As the study progresses, the researcher develops a solid case to present to peers or a governing body. Case study presentation is important because it legitimizes the body of research and opens the findings to a broader analysis that may end up drawing a conclusion that’s more true to the data than what one or two researchers might establish. The presentation might be formal or casual, depending on the case study itself.

Draw Conclusions

Once the body of research is established, it’s time to draw conclusions from the case study. As with all social sciences studies, conclusions from one researcher shouldn’t necessarily be taken as gospel, but they’re helpful for advancing the body of knowledge in a given field. For that purpose, they’re an invaluable way of gathering new material and presenting ideas that others in the field can learn from and expand upon.

Chapter 6 Rural Development Case Study Questions

Please see Chapter 6 Rural Development Case Study Questions and answers below. We have provided Case Study Questions for Class 11 Economics with answers for all chapters. Students should read the case study for Chapter 6 Rural Development which is an important chapter in Class 11 Economics and then attempt the questions provided below. Our teachers have provided answers too so that students can check their solutions.

Case Study Questions Chapter 6 Rural Development

CASE STUDY-1

Tamil Nadu Women in Agriculture (TANWA) is a project initiated in Tamil Nadu to train women in latest agricultural techniques. It induces women to actively participate in raising agricultural productivity and family income. At a Farm Women’s Group in Thiruchirapalli, run by Anthoniammal, trained women are successfully making and selling vermicompost and earning money from this venture. Many other Farm Women’s Groups are creating savings in their group by functioning like mini banks through a micro-credit system. With the accumulated savings, they promote small-scale household activities like mushroom cultivation, soap manufacture, doll making or other income- generating activities.

Questions :

Question. Self help groups and micro credit programmes are an emerging phenomenon in the context of ______________ credit. (rural/urban).

Question. Institutional sources of credit has gone a long way in liberating the farmers from the debt trap of Mahajans and money lenders. (true / false)

Question. Define the concept of micro-credit.

Answer . It refers to small loans meant for the impoverished people.

Question. Name any two non-farm activities to generate income in rural areas.

Answer . Animal husbandry, fisheries horticulture, cottage and small scale industry.

CASE STUDY-2

Agricultural credit in India is available to farmers and other people working in the farming sector in India from various sources. Short and medium term agricultural credit requirements of farmers and others employed in the agricultural sector in India are usually met by the government, money lenders, and co-operative credit societies. Farmers with long-term loan requirements, such as a long-term Agri loan or a loan for agri land purchase, can avail of loans from land development banks, the Indian government, and money lenders.

Question. Which are the two sources of agricultural credit in India?

Answer . (a) Non-institutional sources (b) Institutional sources

Question. Why do farmers need credit?

Answer . Due to long time gap between crop sowing and realisation of income.

Question. Name some institutional sources of agricultural credit.

Answer . NABARD, Co-operative Credit Societies, Commercial banks, Regional Rural Bank e.t.c

Question______ is the apex institution in rural financing, established in _____.

National Bank for Agriculture and Rural Development ( NABARD), 1982

CASE STUDY-3

Agricultural diversification includes two aspects: one relates to change in cropping pattern and the relates to a shift of workforce from agriculture to other allied activities (livestock, poultry ,fisheries etc.) and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to productive sustainable livelihood options to rural area.

Question. Define Agricultural diversification.

Answer . Diverting from same crop production to another option for rural development is called Agricultural diversification.

Question. Give two aspects of agricultural diversification.

Answer . Two aspects: a.) Diversification of crop production b.) Diversification of productive activities

Question. The need for diversification arises to avoid the risk ____________ and also to provide _____________.

dependent on farming for livelihood, productive sustainable livelihood options to rural people.

Question. Name the major fish producing states of India.

Answer . India is the second largest producer of fish in the world. The states of West Bengal, Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.

CASE STUDY-4

In agriculture, due to long time gap between crop sowing and realisation of income,farmers are in strong need for credit.Farmers need money to meet initial investment on seeds, fertilisers, implements and other family expenses of marriage, death,religious ceremonies, etc. So, credit is one of the important factors, which contribute to agricultural production. An efficient and effective rural credit delivery system is crucial for raising agricultural productivity and incomes.

Question. Which one of the following is not a non-institutional source of credit? (a) Money lenders (b) Co-operative Credit (c) Traders and commission agents (d) Land development bank

Question. __________ ( NABARD/ RBI) is the Apex Bank which coordinates the functioning of different financial institutions, working for expansion of rural credit.

Answer. Regulated markets were organised to protect the farmers from the malpractices of consumers. (True/ False)

Question. What is the main aim of co-operative marketing societies?

Answer . The main aim of co-operative marketing is to realise fair price for farmers’ products.

CASE STUDY-5

At the time of independence, money lenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multi agency approach to adequately meet the needs of rural credit. The institutional structure of rural banking today consists of a set of multi agency institutions, namely, commercial banks, regional rural banks, cooperatives and land development banks. They are expected to dispense adequate credit at cheaper rates. Recently, self help groups have emerged to fill the gap in the formal credit system. The SHGs promoter thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates. By may 2019, nearly 6 crore women in India have become member in 54 lakh women SHGs. About Rs 10-15,000 per SHG as a community investment support fund are provided as part of renovationg fund to take up self employment for income generation.

Question. _____________ was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.

Question . The ___________ was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production oriented lending. (a) Green Revolution. (b) Golden Revolution. (c) White revolution. (d) None of these.

Question . Recently, Self Help Groups have emerged to fill the gap in the formal credit system. Such credit provisions are generally referred to as_____________ .

Micro credit programmes.

Question . Which of the following part is not a part of the institutional structure of rural banking today? (a) Commercial banks. (b) Regional rural banks. (c) Non- banking finance companies. (d) Land development banks

CASE STUDY-6

Since age farmers in India have taken resource to debt. In the earlier time the same was from informal sources. since Independence with the effort of the government formal sector has activity come into picture. Farmers borrow not only to meet their investment need but also to satisfy their personal needs but to satisfy their personal needs. Uncertainly of income caused by factors likes crop failure caused by irregular rainfall, reduction in groundwater table other pest attack etc. These resource push them into the clutches of the private money lenders, who charge exorbitant rate of interest which as to their miseries. various government in India at different time for different reason introduced debt relief/ waiver scheme. These came were used by the government as a quick Main to extricate farmers from their indebtedness, helping to restore their capacity to investment produce, in short to lessen the miseries of the farmer across India. The cost and benefit of such debt relief scheme are however a widely debated topic among economists. some economists argue that such scheme are extremely beneficial to the poor and marginalized farmers while other argue that this schemes add to the fiscal burden to the government, others believe that these schemes add to the fiscal burden of the government,others believe that these scheme may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

Question. Can certainly of income for farmer in India is majorly causesd by_______( irregular rainfall/ an availability of loans.)

Irregular rainfall

Question. Some economists argue that debt waiver schemes are extremely beneficial to the poor and marginalized farmers, as these schemes reduce the burden of_________ (indebtedness/personal expenditure)

Indebtedness

Question. The rural banking structure in India consists of a set of multi agency institutions_________(Regional Rural Banks/Small industries development bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.

Regional Rural Banks

Question. ___________(Regional Rural Banks/Land Development Banks) is the most prominent body responsible for providing loans for long term land development.

Land Development Banks

CASE STUDY-7

Diversification includes two aspects – one relates to change in cropping pattern and the other relates to a shift of workforce from agriculture to other allied activities like livestock, poultry, fisheries etc. and non-agriculture sector. The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people. Much of the agricultural employment activities are concentrated in the Kharif season. But during the Rabi season, in areas where there are inadequate irrigation facilities, it becomes difficult to find gainful employment. Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in realising higher levels of income for rural people to overcome poverty and other tribulations.

Question._____________relates to a shift of workforce from agriculture to other allied activities. (Monocropping /Diversification)

Diversification

Question. Livestock comes under the category of ____________ activities. (allied/diversification)

Question. Diversification provides _____________ options to rural people. (livelihood/irrigation)

Question. .It is difficult to find gainful employment in __________ season, in areas where there are inadequate irrigation facilities. (Kharif/Rabi)

CASE STUDY-8

Rural Development is the key issue with the government . Without the development of rural areas India can not increase its growth to desired level. Rural development does not mean only to develop its agriculture marketing and credit but also to develop education , training and infrastructure in rural areas. The government has launched many programmes especially of provision of credit and marketing facilities. The farmers often have shortage of funds. Farmers generally go to non institutional sources for their short term and long term loans. But farmers are generally exploited. To help them government started provided loan through commercial banks and also an apex bank named NABARD was established in 1982. Government is also making efforts to improve agricultural marketing by removing the role of intermediaries where farmers can directly sell their produce to seller without involving any commission agent or middlemen.

Question. SHG’s (a) Self Higher Group (b) Social Help Group (c) Self Help Group (d) None

Question . NABARD is established in the year ______ (1982/1992).

Question . When a sale is made under unfavourable conditions for seller is termed as _________.

Distress Sale

Question . Non farm activities are promoted by government for: (a) regular income to farmer (b) addressing the problem of disguised unemployment (c) reducing pressure on land (d) All of the above

CASE STUDY-9

Development in rural areas, up to a large extent depends on Agriculture, as it constitutes the prime source of livelihood and food for farmers and other villagers. But the statement also holds true, the other way round, that is agricultural in a village also depends hugely on the infrastructure developments and scientific advancements in farming. Agriculture and Rural Development are directly proportional to each other and a development in any one will consequently lead to the improvement of other. On the other hand, a poor state of any one of them will adversely affect the other. The contribution of agriculture in improving rural economy is immense. It sustains village economy by generating food , employment and other related means of livelihood. Organic Farming is natural, thus always preferable. We can have it to maintain the quality of the grain and soil and the legacy of ancient farming. In fact. Organic Farming is more productive than Inorganic Farming. Agriculture sector is the huge employment provider in rural areas. It provides employment to daily wage labours as well as skilled work force in fields as well as other agriculture related activities . Social, economic and overall development of a rural area depends on a wide number of factors like agriculture, better planning, employment generation etc.

Question . Suggest any two areas that need fresh initiatives under rural development.

Answer . Development of human resources, Land reforms, Infrastructure, etc.

Question . ______________ is a system through which agricultural goods reach different places.

Agricultural Market System

Question . What is organic farming?

Answer . Organic Farming is the growing of crops using natural methods and tools. It also includes rearing of animals in natural ways.

Question . Why do you think organic farming is harmless?

Answer . Organic farming retains the taste and nutrients of the crops without involving the usage of harmful chemicals. It also helps in retaining the soil fertility

CASE STUDY-10

The policy intervening rural credit/agriculture has always been credit driven. This is even more pronounced in the Recent interventions made by the state in the package announced for distressed farmers in doubling agricultural credit, providing subvention and putting an upper cap on interest rates for agricultural loans. Looking specifically at rural financial markets using some primary data, we argue that it is necessary to understand the Rural Financial markets from demand side.

Question . Mention any two sources of rural credit in India.

Answer . Institutional and non institutional

Question . What are the main institutional sources of rural credit in India.

Answer . Cooperative credit societies, State bank of India, Commercial banks, Regional Rural banks etc.

Question . What are suggestive measures to overcome the problems of marketing system in India.

Answer . MSP Policy, Regulated markets, Subsidised transport.

Question . Discuss the role of cooperatives in Rural credit.

Answer . Timely and rapid flow of credit, elimination of money lenders, provision of adequate credit.

Chapter 6 Rural Development Case Study Questions

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12th Class Economics Rural Development Question Bank

Done case based que - rural development total questions - 8.

A) normal done clear

B) higher done clear

C) subsidized done clear

D) None of these done clear

A) one tax one nation done clear

B) one nation one ration card done clear

C) demonetization done clear

D) None of the above done clear

A) privileged done clear

B) deprived done clear

C) spoiled done clear

A) PAN done clear

B) Aadhar done clear

C) Voter card done clear

D) None of these done clear

A) 1965 done clear

B) 1966 done clear

C) 1967 done clear

D) 1968 done clear

A) cooperative marketing done clear

B) regulated marketing done clear

C) Both [a] and [b] done clear

A) Gujarat done clear

B) Andhra Pradesh done clear

C) Uttar Pradesh done clear

D) Bihar done clear

A) centralisation done clear

B) diversification done clear

D) None of the above done clear

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Important Case Source Based MCQs of Rural Development Class 12

January 31, 2022
MCQS , Indian Economy , Rural Development

Looking for Case source-based MCQs (Multiple Choice Questions) of Rural Development chapter with answers of Indian Economic Development Book of Class 12 CBSE, ISC, UPSC and other state Board.

We have collected important case and source-based MCQs of rural development chapter of economics class 12

Case and source based MCQs with answers of Rural Development chapter of economics class 12

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Comprehensive Guide: Class 12 Rural Development Q&A

Get ahead in your Class 12 Economics Chapter 5 Rural Development studies with our comprehensive guide on Important Questions Answers! Explore key concepts, demystify FAQs, and find expert answers to important questions in this essential resource. Ace your exam with confidence!

rural development class 12 important questions and answers

"Success is the sum of several small efforts repeated often day in and day out."

Rural Development Class 12 Important Questions & Answers

Q. No. 1) Multiple-Choice Questions (MCQs)

i. Which of the following is the priority in terms of rural development?

a. Land reforms

b. Development of human resources

c. Infrastructural development

d. All of the above

Ans. Option (d)

ii. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The major policy initiatives i.e. land reforms and the green revolution helped India to become self-sufficient in food grains production.

Reason (R): The proportion of people depending on agriculture did not decline as expected.

Alternatives:

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c. Assertion (A) is true but Reason (R) is false.

d. Assertion (A) is false but Reason (R) is true.

Ans. Option (b)

iii. Which among the following is the major reason for the dismal performance of the agricultural sector even after the reforms?

a. Adequate infrastructure

b. Lack of alternate employment opportunities

c. Decrease in the casualization of employment

d. Decline in public investment

iv. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the_________body to coordinate the activities of all institutions involved in the rural financing system. (Fill in the blank with the correct alternative)

a. cooperative

c. micro credit

d. private credit

v. Identify which of the following is a source of non-institutional credit in the rural areas of India.

b. Regional Rural Banks

c. Money Lenders

d. Commercial Banks

Ans. Option (c)

vi. Which among the following can be cited as a limitation of micro-credit programmes?

a. It empowers the womenfolk in rural areas

b. It encourages the habit of thrift in rural people

c. Borrowings from such programmes are done for consumption purposes

d. None of these

vii. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – The emergence of Self-Help Groups (SHGs) ensured the reduction in the fissures of the formal credit system.

Statement 2 – The borrowings from SHGs are mainly confined to consumption purposes by its members.

a. Both statements are true.

b. Both statements are false.

c. Statement 1 is true and Statement 2 is false.

d. Statement 2 is true and Statement 1 is false.

Ans. Option (a)

viii. Micro-credit programmes play a vital role in ensuring the overall development of the rural economy as they____________. (Choose the correct alternative to fill up the blank)

provide financial support
lead to women's empowerment
enhance the reach of the formal credit system

a. (1) and (2)

b) (2) and (3)

c) (1) and (3)

d) (1), (2), and (3)

ix. Read the following statements -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.

Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.

x. Identify the incorrect statement from the following: (Choose the correct alternative)

a. Diversification in the agriculture sector provides sustainable livelihood rural population.

b. Diversification includes - a change in cropping pattern, a shift of workforce from agriculture to other allied activities, and the non-agriculture sector.

c. Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population.

d. Diversification reduces the proportion of the unemployed population in rural areas to considerable limits.

xi. Kavitha, a farmer in rural India, is a recipient of a government scheme named __________. This scheme helps her set up a bank account and provides insurance, overdraft, and other social security benefits.

a. Sansad Adarsh Gram Yojana

b. Jan-Dhan Yojana

c. Kudumbashree

xii. What aims can be achieved through establishing alternate marketing channels?

a. Increase price risk

b. Reduce the markets for farm products

c. Assured procurement of agricultural products at pre-decided prices

d. Decrease the profits of farmers

xiii. Which of the following sectors have the potential of growth but lack infrastructural support in rural areas?

a. Leather industry

c. Pottery, crafts, and handlooms

d. Steel industry

xiv. Which one of the following states the best reason for India following a mixed crop-livestock farming system?

a. Gives meager income

b. Provides nutrition to the family without disturbing other food-producing activities

c. Does not contribute to food security

d. Agriculture is monsoon dependent

xv. Study the following picture and answer the given question:

rural development class 12 important questions answers

Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of activities may be envisaged under _____ as diversification activities.

a. Animal husbandry

b. Fisheries

c. Horticulture

xvi. What is the direct benefit of India taking up organic farming?

a. It is very popular amongst farmers

b. Costlier inputs will fetch a high price for output

c. It is labor intensive

d. There is ample awareness among people about organic products

xvii. Why are farmers reluctant to adopt organic farming?

a. Inputs are costly

b. Short shelf-life of products

c. Lack of proper marketing strategies

Q. No. 2) Access to adequate and timely credit at affordable rates is critical for the rural poor to alleviate high-cost debt and invest in livelihood opportunities. Despite the Government of India's best efforts, financial inclusion of the rural poor has been beset with multiple challenges. Lack of adequate banking infrastructure and human resources in rural areas, unplanned expansion leading to unviable bank branches, and low levels of financial literacy amongst the rural populace have been some of the key challenges. The most vulnerable communities, who often had no formal credit history or ability to provide collateral, have often been the worst affected. The inability to access loans from banks meant that the poorest had to resort to moneylenders for loans at unreasonably high rates of interest which invariably led them into a toxic debt trap. In this context, the SHG-Bank Linkage programme, formalized by the National Bank for Agriculture and Rural Development (NABARD) in 1995, synthesizes 'formal financial systems' (in terms of a formal institution providing credit) with the 'informal sector' (comprising of rural poor with no formal credit history), has emerged as a preferred vehicle for providing financial services to the hitherto unbanked poor. Community-Based Repayment Mechanisms (CBRMs) have been institutionalized at branches involved in financing SHGs to monitor and ensure the timely repayment of loans by SHGs. The number of SHGs with outstanding bank loans stands at nearly 5 million today, implying that the program has brought formal banking services to over 50 million women. Source (edited): Kumar, Shantanu; Pinto, Alreena Renita; Arora, Amit; Roy, Sourav. 2020. SHG-Bank Linkage: A Success Story. South Asia Agriculture and Rural Growth Discussion Note Series; No. 3. World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/34725

i. Why is it important to ensure access to cheap formal sector credit for the rural poor?

a. to create a culture of savings and investment

b. to increase the earnings of the regional rural banks

c. to protect them from predatory lending and debt traps

d. to promote collectivization and organization among them

ii. Which of the following is a crucial area of improvement for rural banking?

a. risk protection for small businesses

b. profitability of non-farm activities

c. a culture of deposit mobilization

d. sustainable development

iii. There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Assertion (A): Micro-credit can help empower women and make them financially independent.

Reason (R): Micro-credit involves small loans provided at reasonable interest rates that can help people start their own ventures.

a. A is true but R is false.

b. A is false but R is true.

c. A and R are true and R explains A.

d. A and R are true and R does not explain A.

iv. This programme would be successful if it can support a large number of people. What would the number of beneficiaries depend on?

a. community support among them

b. their level of average income

c. their level of financial literacy

d. a culture of saving money

v. What could be the main reason for the institutionalization of Community-Based Repayment Mechanisms (CBRMs)?

a. Rural people should play an active role in the bank's day-to-day functions.

b. If the repayment rate is low, banks would be reluctant to sanction fresh loans.

c. High number of default loans is a burden on the government budget.

d. Rural people deliberately refuse to pay back loans to banks.

vi. Which of the following is likely to be the MAIN objective of this programme?

a. providing livelihood to women

b. financial literacy for rural people

c. building community-bank partnerships

d. enabling credit access for the rural poor

Q. No. 3) Read, the following hypothetical Case Study, carefully and answer the questions on the basis of the same.

For ages, farmers in India have taken recourse to debt. In earlier times, the same was from informal sources. Since independence with the efforts of the government, the formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors like crop failure caused by irregular rainfall, reduction in the groundwater table, locust/other pest attacks, etc. These reasons push them into the clutches of private money lenders, who charge exorbitant rates of interest which add to their miseries.

Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short, to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists. Some economists argue that such schemes are extremely beneficial to the poor and marginalized farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

i. Uncertainty of income for farmers in India is majorly caused by …………….. (irregular rainfall/unavailability of loans).

ii. Some economists argue that debt waiver schemes are extremely beneficial to the poor and marginalized farmers, as these schemes reduce the burden of ……………….(indebtedness/personal expenditures)

iii. The rural banking structure in India consists of a set of multi-agency institutions. ……………………… (Regional Rural Banks / Small Industries Development Bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.

iv.……………………. (Regional Rural Banks/ Land Development Banks) is the most prominent body responsible for providing loans for long-term land development.

Ans. i. irregular rainfall

ii. Indebtedness

iii. Regional Rural Banks

iv. Land Development Banks.

Q. No. 4) “Rural Economic development is essential for Indian Economic development”. Do you agree with the given statement? Support your answer with valid reasons.

Mahatma Gandhi had always maintained that the real growth of India lies in the growth of villages. The
importance of rural development in India lies in the fact that 2/3rd of the population still (directly or indirectly) depends on agriculture.
Around 1/3rd of the rural population still lives in abject poverty.

Q. No. 5) What do you mean by rural development? Bring out the key issues in rural development.

Ans. Rural development is quite a comprehensive term but it essentially means a plan of action for the development of rural areas which are lagging behind in socio-economic development.

Some of the prime areas for the development of rural India may be quoted as follows:

Development of Human Capital – Rural human capital must be developed by taking sincere steps in the direction of education and health.
Land reforms
Development of the productive resources of each locality
Infrastructure development – is the key to any development process. Basic infrastructure requirements like electricity, irrigation, credit availability, transport facilities, construction of village roads and feeder roads to nearby highways, etc. are the area that still needs the attention of the government so as to gain commanding heights.
Alleviation of poverty - poverty in rural India is an area that should be taken up as a mission for improvement in the living conditions of particularly those living at the bottom of the pyramid. This problem may be tackled by emphasizing greater access to productive employment opportunities.

Q. No. 6) Two-thirds of the Indian population is dependent on agriculture, yet its contribution to GDP is low. Why?

Ans. After the reforms in 1991, the contribution of agriculture to GDP was low because of:

A decline in public investment since 1991.
Inadequate infrastructure
Lack of alternate employment opportunities in the secondary or tertiary sector
Increasing casualization of employment.

Q. No. 7) Discuss briefly the importance of micro-credit programmes in rural development.

Ans. Self-help groups (SHGs) have emerged to fill the gap in the formal credit system in India as its delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development. It came up as the microfinance program. The focus of SHGs is on those rural people, small and marginal farmers, and agricultural and non-agricultural laborers who do not have sustainable access to a formal banking system.

Provide financial support

Q. No. 8) Kudumbashree' is a woman-oriented community-based poverty reduction programme being implemented in Kerala. In 1995, a thrift and credit society was started as a small savings bank for poor women with the objective to encouraging savings. The thrift and credit society mobilized ₹1 crore as thrift savings. These societies have been acclaimed as the largest informal banks in Asia in terms of participation and savings mobilized. Source: www.kudumbashree.com, NCERT

Based on this passage,

a) Discuss the role of Self-Help Groups (SHGs) in meeting the credit requirements of the poor.

b) List some of the drawbacks of such micro-credit programmes.

Poor women or women who do not have any collateral, were excluded from formal institutions of credit.
With Self-Help Groups, women are able to avail credit, with reasonable repayment plans.
Further, SHGs also receive funds as Community Investment Support Funds, to create self-employment
SHGs not only make credit accessible to poor women but also provide them with opportunities to generate their own income and make decisions.
SHGs foster a sense of community since the credit is disbursed from a pool of money contributed by all. This also holds them accountable to the group.
SHGs allow rural women to be financially empowered.
Borrowings from such programmes are done for consumption purposes.
Lack of financial literacy: Many borrowers who take out microcredit loans do not have a good understanding of financial literacy, such as how to manage their finances and how to make sound financial decisions. This can make it difficult for them to repay their loans and can increase their risk of over-indebtedness.
Lack of regulation: The microfinance sector in India is not as well-regulated as the banking sector. This can make it difficult for borrowers to get the protection they need if they have problems with their loans.

Q. No. 9) Critically evaluate the role of the rural banking system in the process of rural development in India.

Ans. Rapid expansion of the banking system had a positive effect on rural farm and non-farm output, income, and employment. In spite of this, the following problems have been faced in rural banking such as-

The volume of rural credit in the country is still insufficient in comparison to its demand and institutional sources have failed to cover the entire rural farmers of the country.
With the possible exception of commercial banks, other formal institutions have failed to develop a culture of deposit mobilization — lending to worthwhile borrowers and effective loan recovery.
Agriculture loan default rates have been chronically high.

Q. No. 10) “Jan-Dhan-Yojna helps in the rural development.” Do you agree with this statement? Explain.

Ans. All adults are encouraged to open bank accounts as a part of a scheme known as Jan-Dhan Yojana. Those bank account holders can get Rs. 1-2 lakh accidental insurance coverage and overdraft facilities for Rs. 10,000 and get their wages if they get any government-related jobs and works under MNREGA; old age pension and other social security payments of the government are transferred to bank accounts.

This has led to more than 40 crore people opening bank accounts; indirectly it has promoted thrift habit and efficient allocation of financial resources particularly in rural areas.

Q. No. 11) Define agricultural marketing.

Ans. Agriculture marketing is a process that involves the assembling, storage, processing, transportation, packaging grading, and distribution of different agricultural commodities across the country.

Q. No. 12) State and elaborate whether the following statements are true or false, with valid arguments:

i. Agricultural marketing is a process that ensures the transportation of various agricultural commodities only.

ii. Jan-Dhan Yojana has been a crucial step for financial resource mobilization in the Indian economy.

Ans. i. False. Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading, and distribution of different agricultural commodities across the country.

ii. True. Jan-Dhan Yojana has promoted thrift habits and efficient allocation of financial resources, particularly in rural areas. The formal banking system has mobilized a substantial amount under this yojana.

Q. No. 13) What is the need for diversification in rural areas?

Reduces the risk of depending on farming for livelihood.
To provide productive sustainable livelihood options to rural people.
To provide supplementary employment during rabi season.
To remove surplus labor from the agricultural sector to non-farm sectors.

Q. No. 14) Mention some obstacles that hinder the mechanism of agricultural marketing.

Farmers, while selling their produce to traders, suffer from faulty weighing and manipulation of accounts.
Farmers who do not have the required information on prices prevailing in markets are often forced to sell at low prices.
They also do not have proper storage facilities to keep their produce for selling later at a better price.

Q. No. 15) Explain the steps taken by the government in developing rural markets.

Ans. The steps taken by the government in developing rural markets are:

Regulation of markets to create orderly and transparent marketing conditions.
provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage, and processing units.
Cooperative marketing, in realizing fair prices for farmers’ products, is the third aspect of government initiative.
assurance of minimum support prices (MSP) for agricultural products
maintenance of buffer stocks of wheat and rice by the Food Corporation of India and
distribution of food grains and sugar through PDS.

Q. No. 16) What are the alternative channels available for agricultural marketing? Give some examples.

Hadaspar Mandi
Rythu Bazars
Uzhavar Sandies.
Further, several national and multinational fast food chains are increasingly entering into contracts/alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc.) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices.

Q. No. 17) With fishing as an important allied activity, highlight the problems faced by this sector.

Low per capita earnings
Underemployment and rampant poverty among fishermen
High illiteracy and indebtedness
Absence of mobility to other sectors.

Q. No. 18) Identify the benefits of organic farming.

Organic agriculture offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilizers, pesticides, etc.) with locally produced organic inputs that are cheaper and thereby generate good returns on investment.
Organic agriculture also generates income through exports as the demand for organically grown crops is on the rise.
Organically grown food has more nutritional value than chemical farming thus providing us with healthy foods.
Since organic farming requires more labor input than conventional farming, it generates employment opportunities.
Finally, the produce is pesticide-free and produced in an environmentally sustainable way.

Q. No. 19) Enlist any two problems faced by farmers in the initial years of organic farming.

Despite being an eco-friendly method of farming, organic farming is not very popular in India. Why?

Needs to be popularized.
Inadequate marketing
Less output as compared to traditional farming
Shorter shelf life of products
Limited choice of produce.

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CBSE Class 12 Economics Important Case Study Based Questions for 2023 Board Exams

CBSE Class 12 Economics Important Case Study Based Questions: Class 12th Economics exam is just a few hours away. Get Important Case Study Questions to practice before CBSE Class 12 Economics Board examinations scheduled to be conducted on March 17, 2023.

CBSE Class 12 Economics Important Case Study Based Questions: As per the CBSE board exam date sheet, the Class 12 Economics 2023 paper has been scheduled for March 17, 2023. The exam will start in a few hours. The exam will consist of a range of subjective and objective questions covering the CBSE Class 12 Economics 2022-23 syllabus. In order to obtain maximum marks on these questions, students should have a thorough understanding of the basics, terminologies, and equations used in Economics. To assist students in preparing effectively for their upcoming Class 12 Economics exam, we have compiled a list of importantEconomics case study questions. These MCQs have been carefully created, chosen and compiled by subject experts based on the latest exam pattern and revised syllabus of CBSE Class 12 Economics. The answers to the important Case Study Questions are also attached.

Important Case Study Based Questions for CBSE Class 12 Economics Board Exam 2023

Read the following case study paragraph carefully and answer the questions on the basis of the same..

Q1 The central bank of India i.e. Reserve Bank of India, is the apex institution that control the entire financial market. It's one of the major functions is to maintain the reserve of foreign

exchange. Also, it intervenes in the foreign exchange market to stabilise the excessive fluctuations in the foreign exchange rate.

In other words, it is the central bank's job to control a country's economy through monetary policy; if the economy is moving slowly or going backward, there are steps that central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all Involve injecting more cash into the economy. The simple supply and demand economic projection occur and currency will devalue.

When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices.

Whatever the central bank does or in fact don't do, will affect the currency of that country.

Sometimes, it is within the central bank's interest to purposefully effect the value of a currency.

For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country's commodities will seek cheaper supply; hence directly effecting the economy.

1 Which of the following tools are used by the central bank to control the flow of money in domestic economy?

(a) Fiscal tools (b) Quantitative monetary tools

2 Dear money policy of central bank, which is used to keep the growth steady and in-line with other economic factors, refers to

a) Tighten the money supply in the economy
b) Ease the money supply in the economy
c) Allow commercial banks to work under less strict environment
d) Both (b) and (c)

3 Which of the following steps should be taken by the central bank if there is an excessive rise in the foreign exchange rate?

(a) Supply foreign exchange from its stock

(b) Demand more of other foreign exchange

(d) Help central government to stabilize the foreign exchange rate.

Answer:

1(d) Both (b) and (c)

2(a) Tighten the money supply in the economy

3(a) Supply foreign exchange from its stock

Q2 Changes in aggregate demand bring about changes in the level of output, employment, income, and price. These changes are generally cyclical in nature. These changes, more generally, follow a cycle of four different stages namely boom, recession, depression and recovery. The cyclical nature of economic activity is known as trade cycle or business cycle. Boom is a stage of economic activity characterized by rising prices, rising employment, rising purchasing power.

During the boom period economy may get overheated, if it so happens, the monetary authorities, the financial institutions begin to play cautiously. There may be cuts in investment, resulting in cuts in employment; decline in purchasing power, economy may be caught in a web of pessimism, leads to recession. During this stage, if effective corrective measures are not undertaken, the economy may find itself caught in the whirlpool of depression. It is a stage where investment, employment, output touches the bottom. As the economy moves out of depression, it enters the phase of recovery. Keynesian diagnosis of trade cycles is given in terms of changes in aggregate demand. These are ‘excess demand’ and ‘deficient demand ‘that cause trade cycle.

During the time of ‘excess demand’, Govt. should .................. the public expenditure.
a) Reduce b) increase c) unchanged d) none of these.

Answer: Reduce

Investment depends on: a) Supply b) income c) saving d) Both (a) and (c)

Answer: Income.

Q3 In the modern world, govt. aims at maximizing the welfare of the people and the country. It

requires various infrastructure and economic welfare activities. These activities require huge govt. spending through appropriate planning and policy. Budget provides a solution to all these concerns. Budget is prepared by the government at all levels.

Estimated expenditure and receipts are planned as per the objectives of the government. In India, budget is prepared by the parliament on such a day as the president may direct. The parliament approves the budget before it can be implemented. The receipts and expenditures as shown in the budget are only the estimated values for the upcoming fiscal year, and not the actual figure.

1 Which of the following is not an objective of the govt. budget?

a) Reallocation of resources.
b) Re distribution of income
c) Reducing expenditure
d) Economic stability.

Answer: c) Reducing expenditure

2 Govt. budget is a statement of actual receipts and payments of the govt. (True/False)

Answer: False

Q4 India’s balance of payments position improved dramatically in 2013-14 particularly in the last three quarters. this moved in large part to measure taken by the government and the Reserve Bank of India (RBI) and eat some part to the overall macro-economic slowdown that fed into the external sector. current account deficit (CAD) declined sharply from a record high of U.S. dollar 88.2 billion (4.7% of GDP) in 2012 -1/3 to U.S. dollars 32.4 billion (1.7% of GDP) in 2013 -14. After staying at perilously unsustainable levels off well over 4.0 percentage of GDP in 2011 -12 and 2012 -13, the improvement in BOP position is a welcome relief, and there is need to sustain the position going forward. This is because even as CAD came down, net capital flows moderated sharply from U.S. dollars 92.0 billion in 2012 -13 do U.S. dollar 47.9 billion in 2013-14, that two after a special swap window of

The RBI under the nonresident Indian (NRI) scheme / overseas borrowings of banks alone yielded U.S. dollar 3 4.0 billion. This led to some increase in the level of external debt, but it has remained at the manageable levels. the large depreciation of the rupee during the course of the year, note with standing sizable accretion to reserve in 2013 – 14, could partly be attributed to frictional forces and partly to the role of expectations in the forex market. the rupiah has stabilized the recently, reflecting an overall sense of confidence in the forex market as in the other financial markets of a change for better economic

prospects there is a need to nurture and build upon this optimism through creation of an enabling environment for investment inflows so as to sustain the external position in an as yet uncertain global milieu. --------- The Hindu, archives

1 External debt is recorded at:

a) credit, capital account
b) debit, capital account
c) credit, current account
d) debit, current account

2 Money sent by NRI to their families in India included in:

3 Which of the following is not a component of BOP?

a) current account
b) revenue account
c) capital account
d) official reserves

4 Positive balance of net capital flow shows:

a) outward flow of foreign exchange
b) inward flow of foreign exchange
c) decrease in the level of external debt
d) decrease in future claims

Answers: 1.b 2. c 3. b 4. d

Q5 The green revolution for the third agricultural revolution is the set of research technology

e-transfer initiatives earring between GNE E and the late 1960 that increased agricultural

production worldwide beginning most markedly in the late 1960 the initiative resulted in

the adoption of new technologies including high yield varieties of CSR rules of cells

especially does wheat and rice it was associated with chemical fertilizers agrochemicals

and controlled water supply and newer methods of cultivation including machine isolation

National bank for agriculture and rural development is and apex development finance

institution fully owned by government of India the bank has been entrusted with Martyrs

concerning policy planning and operations in the field of credit for agriculture and other

economic activities in rural areas in India.

1 Who among the following is known as the father of green revolution

(a) Dr. M S Swaminathan

(b) Dadabhai Naoroji

(d) all of these

2 Green revolution is also known as ..................

(a) Golden revolution

(b) milk revolution

(d) None of this

3 Which of the following institutions were setup as the apex body in rural areas to support the small farmers in the adoption of modern farming methods?

4 Green revolution was the ............... set of agricultural reforms brought in India

Answer: 1 (a) 2 (c) 3 (d) 4(c)

Q6 New Economic Policy of India was launched in the year 1991 under the leadership of P.

Narasimha Rao. This policy opened the door of the India Economy for the global exposure for the first time. In this New Economic Policy P. V. Narasimha Rao governmentreduced the import duties, opened reserved sector for the private players, devalued the Indian currency to increase the export. This is also known as the LPG Model of growth. New Economic Policy refers to economic liberalization or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country. Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. Manmohan Singh introduced the NEP on July 24,1991. Main Objectives of New Economic Policy – 1991, July 24 The main objectives behind the launching of the New Economic policy (NEP) in 1991 by the union Finance Minister Dr. Manmohan Singh are stated as follows:

The main objective was to plunge Indian Economy in to the arena of ‘Globalization and to give it a new thrust on market orientation. The NEP intended to bring down the rate of inflation.

1 New Economic Policy of India was launched in the year 1991 under the

leadership of .................. (choose the correct alternative))

P. V. Narasimha Rao
Atal Bihari Bajpayi
Sharad Pawar
None of these

2 .................................. is also known as the LPG Model of growth. ((choose

the correct alternative)) (New Economic Policy / New Education Policy)

Answer: New Economic Policy

3 State whether the given statement is true or false:

Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. ((choose the correct alternative))

True / False

Answer: True

Q7 Both forms of capital formation are the outcomes of conscious investment decisions. The decision regarding investment in physical capital is taken on the basis of one’s knowledge in this regard. The ownership of physical capital is the outcome of the conscious decision of the owner the physical capital formation is mainly an economic and technical process.

Human capital formation takes place in one’s life when she/he is unable to decide whether it would maximize her/his earnings. Children are given different types of school education and health care facilities by their parents and society. Moreover, the human capital formation at this stage is dependent upon the already formed human capital at the school level. Human capital formation is partly a social process and partly a conscious decision of the possessor of the human capital.

1 Which of the following does not correctly differentiate between the physical and human capital?

a) Human capital is intangible whereas physical capital is tangible.
b) Human capital can cope up with the changing technology whereas physical cannot.
c) Human capital generates both personal and societal benefits whereas physical capital generates only personal benefit.
d) Human capital gets obsolete with time whereas physical capital does not.

Answer: – d) Human capital gets obsolete with time whereas physical capital does not.

In the context of the paragraph, it can be argued that human capital depreciates faster than the physical capital. The given statement is:
c) Partially true
d) can’t comment due to lack of proper estimation mechanism

Answer: b) false

Machines and industrial tools are examples of _
a) Physical capital
b) Human capital
c) Both physical and human capital
d) Natural capital

Answer: a) Physical capital

Investment in education by parents is the same as_______
a) Investment in intermediate goods by companies
b) Investment in CSR activity by companies
c) Investment in capital goods by companies
d) None of the above

Answer: – c) Investment in capital goods by companies

Q8 The central government will spend Rs. 9800 crores on livestock development over the next five years in a bid to leverage almost Rs. 55000 crore of outside investment into the Animal Husbandry Sector. It would do this by merging a slew of schemes of the Department of Animal Husbandry and Dairying into three main programmes, focused on indigenous cows and dairy development, livestock health and infrastructure development, an official statement said. The Cabinet Committee on Economic Affairs approved the implementation of the special livestock sector package by revising and realigning the various components of the existing schemes in order to boost growth and make animal husbandry more remunerative for the 10 crore farmers engaged in it.

1) Livestock production provides ------------- for the family without disrupting other food producing activities

(a)Increased stability in income

(b) food security

(c)transport and fuel

Answer: (d) all of these

2) The central bank undertakes to invest on livestock development in ----------- (horticulture/ animal husbandry) sector

Answer: animal husbandry

3) State one limitation of livestock sector in India

Answer: The livestock productivity is quite low as compared to other countries

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Class 12 Economics Case...

Class 12 Economics Case Study Questions

Table of Contents

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Download the app to get CBSE Sample Papers 2023-24, NCERT Solutions (Revised), Most Important Questions, Previous Year Question Bank, Mock Tests, and Detailed Notes.

In this article, we will discuss how to download CBSE class 12 Economics Case Study Questions from the myCBSEguide App and our Student Dashboard for free. For the students appearing for class 12 board exams from the commerce/ humanities stream, Economics is a very lucrative and important subject. It is a very high-scoring subject that aids the students to increase their percentile and excel in academics.

The exam is divided into 2 parts:

Macro Economics
Indian Economics Development

12 Economics Case Study Questions

CBSE introduced case-based questions for class 12 in the year 2021-22 to enhance critical thinking in students. CBSE introduced a few changes in the question paper pattern to enhance and develop analytical and reasoning skills among students. Sanyam Bharadwaj, controller of examinations, CBSE quoted that the case-based questions would be based on real-life situations encountered by students.

The purpose was to drift from rote learning to competency and situation-based learning. He emphasized the fact that it was the need of the hour to move away from the old system and formulate new policies to enhance the critical reasoning skills of students. Introducing case study questions was a step toward achieving the goals of the National Education Policy (NEP) 2020.

What is a Case Study Question?

As part of these questions, the students would be provided with a comprehensive passage, based on which analytical questions will have to be solved by them. The students will have to read the given passage thoroughly before attempting the questions. In The current examination cycle (2021-22), case-based questions have a weightage of around 20%.

Types of Case Study Questions in Economics

CBSE plans to increase the weightage of such questions in the following years, so as to enhance the intellectual and analytical abilities of the students. Case-based questions are predominantly of 3 types namely:

Inferential

Local questions

Local questions can be easily solved as the answers are there in the given passage itself.

Global Questions

For Global questions, the students will have to read the passage in depth, analyze it and then solve it.

Inferential questions

Inferential questions are the ones that would require the student to have complete knowledge of the topic and could be answered by application of the concepts. The answers to such questions are tricky and not visible in the given passage, though the passage would highlight the concept on which the questions would be asked by CBSE.

HOTS Questions in Class 12 Economics

Personally, the concept of case-based questions is not new since CBSE has always included questions based on Higher Order Thinking Skills (HOTs). Though now we will have an increased percentage of such questions in the question paper.

Advantages of Case-based Questions

Class 12 Economics has two books and CBSE can ask Case study questions from any of them. Students must prepare themselves for both the books. They must practice class 12 Economics case-based questions as much as possible.

Case study questions:

Enhance the intellectual and analytical abilities of the students.
Provide a complete and deeper understanding of the subject.
Inculcate intellectual reasoning and scientific temperamental in students.
Help students retain knowledge for a longer time.
Would definitely help to discard the concept of memorizing insanely and cramming without a factual understanding of the content.
The questions would help to terminate the existing system of education in India that promotes rote learning.

Sample case study questions (Economics) class 12

Here are some case study questions for CBSE class 12 Economics. If you wish to get more case study questions and other related study material, download the myCBSEguide App now. You can also access it through our Student Dashboard.

Case Study 1

Keeping in view the continuing hardships faced by banks in terms of social distancing of staff and consequent strains on reporting requirements, the Reserve Bank of India has extended the relaxation of the minimum daily maintenance of the CRR of 80% for up to September 25, 2020. Currently, CRR is 3% and SLR is 18.50%.

“As announced in the Statement of Development and Regulatory Policies of March 27, 2020, the minimum daily maintenance of CRR was reduced from 90% of the prescribed CRR to 80% effective the fortnight beginning March 28, 2020 till June 26, 2020, that has now been extended up to September 25, 2020,” said the RBI.

Q.1 The full forms of CRR and SLR are:

Current Reserve Ratio and Statutory Legal Reserves
Cash Reserve Ratio and Statutory Legal Reserves
Current Required Ratio and Statutory Legal Reserves
Cash Reserve Ratio and Statutory Liquidity Ratio (ans)

Q.2 What will be the value of the money multiplier?

None of these

Q.3 SLR implies:

a) Certain percentage of the total banks’ deposits has to be kept in the current account with RBI
b) Certain percentage of net total demand and time deposits have to be kept by the bank themselves (ans)
c) Certain percentage of net demand deposits has to be kept by the banks with RBI
d) None of the above

Q.4 Decrease in CRR will lead to __.

a) fall in aggregate demand in the economy
b) rise in aggregate demand in the economy (ans)
c) no change in aggregate demand in the economy
d) fall in the general price level in the economy

Case Study 2

An important lesson that the COVID-19 pandemic has taught the policymakers in India is to provide greater impetus to sectors that make better allocation of resources and reduce income inequalities. COVID-19 has also taught a lesson that in crisis the population returns to rely on the farm sector. India has a large arable land, but the farm sector has its own structural problems. However, directly or indirectly, 50 percent of the households still depend on the farm sector. Greater support to MSMEs, higher public expenditure on health and education and making the labour force a formal employee in the economy are some of the milestones that the nation has to achieve.

One of the imminent reforms to be done in the country is labour reforms. Labour laws are outmoded in India, and some of these date back to the last century.

India’s complex labour laws have been blamed for keeping manufacturing businesses small and hindering job creation. Industry hires labour informally because of complex laws and that is responsible for low wages.

Which types of structural problems are faced by the agricultural sector?
“It is necessary to create employment in the formal sector rather than in the informal sector.’’ Defend or refute the given statement with valid argument.
Hired labour comes in …………………. (Informal organisation / formal organisation)
What do you mean by MSMEs?

Case Study 3

People spend to acquire information relating to the labour market and other markets like education and health. This information is necessary to make decisions w.r.t investment in human capital and its efficient utilization. Thus, expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.

Q1. Which of the following is the source of human capital formation in India?

Acquiring information
All of these (ans)

Q2. Education provides

Private benefit
Social benefit
Both 1) and 2) (ans)

Q3. __ persons contribute more to the growth of an economy.

Q4. Training given by a company to its employees is generally__________

Investment (ans)
Social wastage
Both 1) and 2)

Tips to Solve Case Study Questions in Economics

Let’s understand how you can solve case study questions in class 12 Economics. The two books are Macroeconomics and Indian Economic Development.

Read the passage thoroughly
Can follow a reversal pattern, especially macroeconomics questions, i.e. read questions first and then look for the answers in the passage.
In case the question asked is about Indian Economic Development, read the passage very carefully as most of the answers would be hidden in the passage itself.
Macro Economics questions will be more application-based and would test your conceptual clarity.
Answer briefly and precisely.

Important Chapters – Economics Case Study Questions

Following are some of the very important topics that need to be prepared very thoroughly under CBSE class 12 Economics. We expect that CBSE will certainly ask case-based questions from these chapters.

National income and its aggregates
Government budget
Current challenges faced by the Indian economy

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Question 1:

What do you mean by rural development? Bring out the key issues in rural development.

Rural areas support the bulk of India’s population. Simultaneously, these areas are the breeding ground of poverty, hunger and starvation. So, to accelerate the process of growth and development of a country, rural development must be accorded priority. Rural development refers to the actions and initiatives taken for the social and economic development of the rural or backward areas. The key issues in rural development are as follows:

1. Human Capital Formation - Rural areas lack quality human capital. Therefore, rural development programmes should aim at development of human resources by investing in education, technical skills development through on-the-job training, health care, etc.

2. Development of Productive Resources - Productive resources help in generating employment opportunities. In rural areas, the main occupation is agriculture that usually suffers from low productivity, lack of infrastructure and disguised unemployment. Thus, rural development must aim at development of alternative sources of occupation. Development of productive resources reduces excess burden on the agricultural sector, thereby, increasing productivity and income of the rural people.

3. Development of Rural Infrastructure - Infrastructure development is a very crucial issue at the micro level. It provides a support system to all the production activities in the economy, the absence of which makes economic growth and social development impossible. Development of rural infrastructure includes development of bank, credit societies, electricity, means of transport, means of irrigation, development of markets, facilities for agricultural research, etc.

4. Land reforms - Land reforms along with technical reforms must be initiated in the rural areas. These enable the use of modern techniques and methods, thereby, increasing the productivity and aggregate volume of farm output. In addition, land reforms lead to efficient and optimum use of land, enabling large scale production.

5. Lessening Poverty - Poverty is one of the main causes of rural underdevelopment. Poverty is not a problem in itself; in fact, it gives rise to many other interrelated problems like unemployment, inferior human capital, underdevelopment and backwardness, inequalities, etc. An important step that should be taken in order to tackle t poverty is to develop income-earning assets. Such assets would generate income, raise living standards and make rural people self-sufficient.

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Question 2:.

Discuss the importance of credit in rural development.

Finance and credit are the two essential requirements for rural development. The rural areas often suffer from low income leading to low rate of savings. Farmers find it very difficult to increase their productivity by investing on their farm lands. Further, the limited number of banks that are available in the rural areas prefer to forward credit to the farmers with large land-holdings. Getting credit from banks being difficult, the small and marginal farmers fall easy prey to the money lenders. The infusion of credit is very essential for the growth of agricultural sector, leading to rural economic development. The importance of credit in rural development is highlighted in the following points:

1. Credit helps the farmers to commercialise their farming. In other words, commercial farming requires funds that are provided via credit. As the small and the marginal farmers produce only for their subsistence, they fail to generate sufficient surplus to reinvest on their lands leading to degradation of the land.

2. Secondly, given the long gestation period between sowing and harvesting of the crops, credit is extended to the farmers for meeting their initial requirements of farm inputs like seeds, fertilisers, etc.

3. Credit saves the farmers from the vicious circle of poverty. The farmers require funds for meeting their general and specific needs. These needs are to be fulfilled via credit.

4. Lastly, agriculture has always been dependent at the vagaries of climate. In the absence of good monsoon or crop failure, farmers are worst hurt. Thus, in order to save them from such tragedy, crop insurance and farm credit plays a vital role.

Question 3:

Explain the role of micro-credit in meeting credit requirements of the poor.

Micro credit refers to credit and other financial services provided to the poor through Self Help Groups (SHGs) and non government organisations. The Self Help Groups are playing a crucial role in meeting the credit requirements of the poor by inculcating saving habits among the rural households. The individual savings of many farmers are pooled together to meet the financial requirements of the needy members of the SHGs. The members of these groups have been linked with the banks. In other words, SHGs enable the economically poor individual to gain strength as part of a group. Also, the financing done through SHGs reduces transaction costs for both the lenders and the borrowers. The National Bank for Agricultural and Rural Development (NABARD) played a key role in providing credit at special concessional rates. Presently, more than seven lakhs SHGs are operating across different rural areas. SHGs' programmes are becoming popular among the small and marginal borrowers owing to their informal credit delivery mechanism along with minimum legal formalities.

Question 4:

Explain the steps taken by the government in developing rural markets.

The following are the various steps initiated by the Indian government to develop the rural markets:

1. Regulated Markets : The government came up with the concept of regulated market where the sale and purchase of the products are monitored by the Market Committee. This Market Committee consists of farmers, government agents and traders. This practice infuses greater transparency in the marketing system through the use of proper scales and weights. Such committees ensure the farmers and the consumers in receiving fair price in exchange of their products

2. Infrastructure Development : The present infrastructure is not sufficient to meet the growing demands of the farmers. Indian government provided cold storages and warehouses that help the farmers to sell their product at the time when the price is attractive. Also, railways offer subsidised transport facilities to the farmers. This enables the farmers to bring their product to urban areas where they can earn huge profits.

3. Co-operative Agricultural Marketing Societies : The government also started co-operative marketing under which the farmers get access to fair prices. This is due to the better and enhanced bargaining power of the farmers via collective sale in the market.

4. MSP Policy : Minimum Support Price is a minimum legislated price that a farmer may charge in exchange for his products. This enables them to sell their products in the open market at a higher price. The MSP insulates the farmers in case of price fall as this is the minimum price that they can receive. The need of such assurance to the farmers is of immense importance as farming in India is subject to many uncertainties.

Question 5:

Why is agricultural diversification essential for sustainable livelihoods?

The agricultural diversification implies diversification of crop production and shifting of agricultural workforce to other allied activities such as livestock, poultry, fisheries, etc. and non-agriculture sector. The shift from the crop farming to non-farm employment is essential in order to raise income and to explore alternative avenues of sustainable livelihood. The importance of agricultural diversification can be explained with the help of the following points:

1. A substantial portion of Indian farming is dependent on the vagaries of monsoon, making it a risky affair to rely upon solely. Accordingly, the need for diversification is required to enable the farmers to earn from other alternative non-farm occupations. This lessens excess burden on agriculture by reducing disguised unemployment.

2. The kharif season opens up ample opportunities for agricultural employment. However, owing to lack of irrigation facilities, the farmers fail to get gainful employment opportunities during the Rabi season.. Therefore, the need of diversification arises during the Rabiseason.

3. Agriculture being over crowded cannot further generate employment opportunities.. Therefore, the prospects of the non-farm sectors should be opened up in the rural areas to provide job opportunities, thereby, diverting workforce from the already crowded agricultural sector.

4. The non farm sector has several segments that possess dynamic linkages. Such linkages enhance the healthy growth of an economy.

Page No 114:

Question 6:.

Critically evaluate the role of the rural banking system in the process of rural development in India.

With the nationalisation of the commercial banks after 1969, the concept of social banking came into existence. It implies extending institutional credit at moderate rate of interest. The National Bank for Agricultural and Rural Development (NABARD) has made a significant progress in the field of rural credit. It cannot be denied that the institutional credit has freed the farmers from the trap of money lenders and mahajans. But, on the other hand, institutional credit is not free from deficiencies. The rural or institutional credit has invariably been associated with security or collateral. Consequently, a substantial number of farmers cannot avail credit. Also, the commercial banks failed to encourage the habit of thrift among farmers. In addition to this, the leniency on the part of the government to collect taxes was another setback in the rural banking. This further led to the emergence of the feeling among the farmers of not repaying the borrowed amount. This increased the defaulterâ€™s rate and led to financial unfeasibility for the rural banks.

Question 7:

What do you mean by agricultural marketing?

Agricultural marketing refers to all those processes that are involved from harvesting to final sales of the products by the farmers. These processes involve:

a) gathering the product after harvesting.

b) processing the product

c) grading the product, according to, different quality norms

d) packaging the product

e) storing the product for future use

f) selling the product at attractive prices

In other words, it does not simply refer to the farmersâ€™ act of bringing their product to the market for the purpose of sale. But it also includes all those activities that help the farmers to fetch the maximum price for his product.

Question 8:

Mention some obstacles that hinder the mechanism of agricultural marketing.

Agricultural marketing does not simply refer to the farmersâ€™ act of bringing their product to the market for the purpose of sale. But it also includes all those activities that help the farmers to fetch the maximum price for their product. The following are some of the obstacles that hinder the mechanism of agricultural marketing:

i. Farmers are vulnerable to defective weighing techniques and misappropriation of accounts.

ii. Farmers are often ill-informed about market prices and market conditions. Being ignorant, farmers are forced to sell their product at lower prices.

iii. The farmers lack access to proper storage facilities to store their produce for future sell at better prices.

iv. The farmers cannot avail agricultural credit, leading to their exploitation by the moneylenders and mahajans.

Question 9:

What are the alternative channels available for agricultural marketing? Give some examples.

The small and marginal farmers, selling their product through the middlemen, were exploited by these middlemen. The farmers were not given appropriate price for their product. In this context; there arose a need for an alternative marketing channel. Under this channel, the farmers can sell their product directly to the consumers that would fetch them comparatively higher price, thereby, attractive profits. Some of the examples of alternative agricultural marketing are Apni Mandi in states like Punjab, Haryana and Rajasthan, Hadaspar Mandi in Pune, Rythu Bazars in Andhra Pradesh, Uzhavar Sandies in Tamil Nadu. Another alternative channel for agricultural marketing is the contract of direct sales between the farmers and the national and international companies. These companies offer advance payments to the farmers for supplying products at pre-determined rates. These alternative agricultural channels raise farmerâ€™s income and simultaneously reduce price risk for the small and marginal farmers.

Question 10:

Distinguish between â€˜Green Revolutionâ€™ and â€˜Golden Revolutionâ€™

Question 11:

Do you think the various measures taken by the government to improve agricultural marketing are sufficient? Discuss.

To improve the system of agricultural marketing the government initiated a number of measures such as organisation of regulated markets, infrastructural development (cold storage, warehouses, etc.), propagation of market information through agriculture based programmes on radio and television, Minimum Support Price Policy, etc. However, despite various attempts by the government the system of agricultural marketing in India has only been partly successful. The following are some of the obstacles in the successful agricultural marketing system. 1. It is found that farmers often fall prey to defecting weighing techniques and misappropriation of accounts. 2. Farmers lack knowledge of market prices and market conditions which forces them to sell their produce at a lower price. 3. Storage facilities are insufficient which forces the farmers to sell their produce at a lower price right after harvesting. Also, insufficient storage makes the crops vulnerable to pests and bad weather. 4. There is lack of institutional sources of finance which forces the farmers to fall back on moneylenders for obtaining credit. 5. Transportation facilities are insufficient as a result of which the farmers are unable to sell their produce at far off places. 6. Due to the presence of large number of intermediaries farmers remain separated from the actual consumers. The intermediaries purchase the produce from the farmers at a very low price and sell them at a much higher price in the market. This implies that the farmers receive a very small share of the actual return of the produce.

Question 12:

Explain the role of non-farm employment in promoting rural diversification.

The non-farm areas of employment are essential with a view to raise income and exploring alternative avenues of sustainable livelihood besides agriculture. The following are the importance of non-farm employment opportunities in promoting rural diversification:

1. A substantial portion of Indian farming is dependent on the vagaries of monsoon, making it a risky affair to rely upon solely. Hence, non-farm employment opportunities are to be explored to enable the farmers to earn from alternative non-farm occupations. This will lessen the excess burden on agriculture by reducing disguised unemployment.

2. The kharif season opens up ample opportunities for agricultural employment. However, due to lack of irrigation facilities, the farmers fail to get gainful employment opportunities during the Rabi season. Therefore, absence of opportunities in agriculture sector should be compensated in non-farm sectors.

3. Agriculture being over crowded cannot further generate employment opportunities to the farmers. Therefore, the prospects of the non-farm sectors should be opened up in the rural areas to provide job opportunities, thereby, diverting workforce from the already crowded agricultural sector.

4. The non-farming sector has several segments that have dynamic linkages. Such linkages enhance the healthy growth of the rural areas.

5. The non-farm sector provides employment opportunities for the whole year as compared to the farming occupation. So, it helps to eradicate poverty from the rural areas.

6. Most of the output of non-farm sectors acts as an input for the large scale industries. For example, agro-processing industries, food processing industries, leather industry, tourism,etc. This has two-fold benefits. First, the large scale industries can specialise in their final output by relying on the processed inputs from the non-farm sectors. Secondly, such dependence of the large scale industries provides impetus to the non-farm sectors reducing the urban-rural regional disparities.

Question 13:

Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification.

Importance of Animal Husbandry

Animal husbandry is the most important non-farm employment in India. It is also known as Livestock Farming. Poultry, cattle and goats/sheep are the important components of livestock farming in India. Most of the rural families carry out livestock farming together with crop farming in order to increase their income. The share of livestock farming is comparatively higher in the semi arid and arid areas than the irrigated areas. This is because the arid areas have lesser access to irrigation facilitiesand thereby, crop farming is less feasible. Thus, in other words, it can be said that livestock farming provides sustainable livelihood to the people in the semi arid and arid regions where farming canâ€™t be performed well. Further, capital investment in livestock farming is comparatively less than that in crop farming. In addition, livestock farming is an important source of employment for rural women. Presently, animal husbandry is the most important source of alternative employment, employing approximately 70 million small and marginal farmers. Besides providing employment, livestock farming has resulted in increased production of milk, eggs, meat, wool and other by-products, enhancing the consumption bundle qualitatively and nutritionally.

Importance of Fisheries

â€˜Fisheriesâ€™ are an important source of livelihood in the coastal states such as Kerala, Maharashtra, Gujarat and Tamil Nadu. The fishing community in India depends on water bodies- both inland and marine water bodies. Inland sources include rivers, lakes, ponds, and streams, while, the marine sources include seas and oceans. The increasing efforts by the state governments have attracted funds in this sector, boosting the production. But this community remains one of the backward communities in the country due to low per capita earnings, lack of labour mobility to other sectors, illiteracy and indebtedness. Despite a significant segment engaged, this sector contributes only 1.4% to Indiaâ€™s total GDP.

Importance of Horticulture

Horticulture is emerging as an important source of livelihood in the rural areas. Horticultural crops include fruits, vegetables, medicinal and aromatic plants and flowers. Presently, India is the second largest producer of fruits and vegetables that includes mangoes, bananas, coconuts, cashew nuts and variety of species. There has been a considerable rise in the income levels of families engaged in horticultural production. The increase in horticultural production has lowered the vulnerability of small and marginal farmers. This has provided a gateway of opportunities for employment for women. It generates employment for 19% of Indiaâ€™s total labour force. In contrast to fishing, Horticulture does not suffer from ecological and environmental problem. Hence, horticulture must be promoted with sufficient investment and infrastructure.

Question 14:

â€˜Information technology plays a very significant role in achieving sustainable development and food securityâ€™ â€” comment.

Information technology (IT) plays a very significant role in achieving sustainable development and food security. IT enables to provide and store data related to the past and future conditions providing inputs for policy decision and for adopting various corrective measures. For example, with the help of IT, weather conditions can be forecast. If ,for example, there is a probability of crop failure, then preventive measures can be taken to avoid or mitigate the impact of food insecurity. Information technology facilitates the storage and dissemination of information on emerging technologies, weather and soil conditions for growing various crops, etc, which ease the decision making process vis-a-vis production and productivity. Now days, the farmers can consult Kisan Call Centres and various web sites providing valuable information regarding measures to improve farm productivity and quality of farm inputs, seeds, fertilisers and various modern techniques. It acts as a tool for identifying the experts on food security and sustainable development. . IT sector also generates employment opportunities in the backward areas via developing â€˜info kioskâ€™ (i.e. PC with internet, scanner, etc.) in the rural areas. Thus, it can be said that IT plays a vital role in assuring food security and sustainable development in India.

Question 15:

What is organic farming and how does it promote sustainable development?

Organic farming refers to a system of farming that sustains and enhances the ecological balance. In other words, this system of farming relies upon the use of organic inputs for cultivation. The traditional farming involves the use of chemical fertilisers, toxic pesticides, etc. that harms the eco system drastically. So, this type of farming is practiced to produce toxic-free food for the consumers while simultaneously maintaining the fertility of the soil and contributing to ecological balance. This type of farming enables eco friendly sustainable economic development.

Question 16:

Identify the benefits and limitations of organic farming.

Organic farming has some notable advantages as compared to the conventional farming. The advantages of the organic farming are as follows:

1. Discards Use of Chemicals : Unlike conventional farming, organic farming is free from synthetic chemicals. The chemicals present in the chemical fertilisers penetrate into the ground water and raises its nitrate content. This cause health hazards and also pollutes the environment. So, organic farming is an environment friendly method of farming.

2. Sustains Soil Fertility : The use of chemical fertilisers leads to erosion of soil fertility. Organic farming discards the use of chemical fertilisers. Therefore, this farming is practiced to produce non-toxic food for the consumers without degrading the soil fertility.

3. Healthier Food : Organically grown crops have high nutritional value than the conventionally grown crops. Also, the demand for organic farming rises rapidly even at a higher price.

4. Inexpensive Technology for Small and Marginal Farmers : The small and marginal farmers constitute the bulk of the farming. Organic farming offers an inexpensive farming technique to these small and marginal farmers.

5. Generates Income from Exports : It generates higher income from exports as there is huge international demand for organic crops.

Limitations of Organic Farming:

Despite the above mentioned benefits, Organic Farming suffers from the following limitations:

1. Organic Farming offers lesser yield than the conventional farming. Therefore, the productivity of the Organic Farming is lower than that of the conventional farming.

2. The popularity of organic farming depends on the awareness and willingness of the farmers to adopt this technology. Due to lower productivity, farmers lack initiative to adopt Organic Farming techniques.

3. The inadequate infrastructure and problem of marketing are the major concerns that need to be addressed to promote Organic Farming.

4. As Organic Farming offers lesser yield than conventional farming, this farming is not financially viable for the small and marginal land-holdings farmers.

Question 17:

Enlist some problems faced by farmers during the initial years of organic farming.

In the initial years, it has been observed that the yields from Organic Farming are lesser than the modern agricultural farming. So, the farmers found it difficult to undertake large scale production. Also, due to the low yield per hectare, this technique was not financially viable for the small and marginal workers. The products obtained from organic farming have shorter life and are quickly-perishable. Moreover, the choice in production during off-season is quite limited in Organic Farming. Despite these shortcomings in the initial years, India has attained comparative advantage in Organic Farming due to labour intensive techniques. Hence, the availability of labour in abundance popularised Organic Farming in India.

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