KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

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Students can download Class 8 Economics Chapter 4 Government and the Economy Important Questions, KSEEB Class 8 Social Science Important Questions and Answers helps you to revise the complete Karnataka State Board Syllabus and to clear all their doubts, score well in final exams.

Karnataka State Syllabus Class 8 Social Science Economics Important Questions Chapter 4 Government and the Economy Economy

Question 1.
What is planning?
Answer:
Planning refers to the deliberate actions of the government to systematically allocate and utilise available resources to achieve pre-determined goals in the interest of all. It involves identification of requirements, setting goals, mobilising resources, designing action plans to utilise the resources, monitoring them and evaluating whether the goals have been achieved or not.

KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

Question 2.
Who is responsible for framing and implementing the Five Year Plans in India?
Answer:
Formerly the Planning Commission and now the National Institution for Transforming India (NITI Aayog) is responsible for framing and implementing the Five Year Plans in India.

Question 3.
What is the aim of NITI Aayog?
Answer:
NITI Aayog aims at preparing long-run strategies as guideposts for steering the economy to achieve desired goals.

Question 4.
What are the objectives of planning in India?
Answer:
The general objectives of planning in India are:

  1. Increase the rate of economic growth, increase national income and bring down poverty.
  2. Bring about modernisation of the economy.
  3. Achieve self-reliance by promoting domestic production and reducing imports.
  4. Reduce inequalities of income and wealth by ensuring that the benefits of economic growth reach the poorer sections.
  5. Development of infrastructure including transport, communication, power, irrigation, education, etc.
  6. Development of financial institutions for mobilisation of resources for the growth of priority sectors.
  7. Balanced regional development.
  8. Promoting private sector.

Question 5.
How many five year plans have been completed so far?
Answer:
Twelve five year plans have been completed so far.

KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

Question 6.
Explain the achievements of planning in India.
Answer:
The achievements of planning in India are:
1. Increase in national income and per capita income:
There has been steady increase in national income as well as per capita income during the planning period. The per capita income has increased from Rs. 7513 in 1950-51 to Rs. 74193 in 2014-15.

2. Development in agriculture:
The production of food grains has increased from 51 lakh tonnes in 1950-51 to 252 million tonnes in 2015-16. Production of all crops has increased manifold.

3. Development of industries:
There has been substantial growth in capital goods industries like iron and steel, chemical fertilisers, etc.

4. Development of economic infrastructure:
Five Year Plans laid the foundation for the development of economic infrastructure including transport, power generation, communication, irrigation, etc.

5. Development of social infrastructure:
Development of social infrastructure such as education, health, housing, etc., is an important achievement of our Five Year Plans.

6. Self-reliance:
India has been able to achieve self-reliance in the production of basic consumer goods, food grains, steel, power and chemical fertilisers.

7. Employment generation:
Large employment opportunities have beeh created through establishment of small and cottage industries, development of self-employment schemes, improvement of agriculture and services sector, etc.

8. Capital formation:
Development of agriculture, industries,-etc., has resulted in increase in income as well as the rate of capital formation.

9. Development of science and technology:
India has made substantial progress in the field of science and technology. Today India stands third in the world in the sphere of science and technology.

10. Social justice:
The fundamental objective of planning in India has been to achieve growth with social justice. Measures like land reforms, abolition of bonded labour, reduction of economic disparities, fixation of minimum wages, etc., have contributed towards achieving social justice.

Question 7.
Explain the major failures of planning in India.
Answer:
The failures of planning in India are:

  1. Slow growth in production: During the Five Year Plans, the rate of growth of production has been slow and lower than the targets set.
  2. Rise in prices: Due to slow growth in production but increase in population, prices continued to rise in every plan.
  3. Increase in unemployment: Though several employment opportunities have been created during the plans, they were not in tune with the increase in youth population, resulting in huge unemployment.
  4. Persisting poverty and inequality: Although the Five Year Plans have succeeded in reducing poverty and inequality, there is still a large population below the poverty line.
  5. Inadequate infrastructure development: Though the Five Year Plans laid the foundation for the development of infrastructure facilities, the expansion has not been in tune with the requirements for a faster growth.
  6. Inefficient administration: One of the main shortcomings of planning in India has been poor implementation. Targets have not been achieved due to inefficient administration, vested interests, red tapism, etc.
  7. Insufficient growth in exports: Growth in exports as well earnings from exports have not been up to expectations due to slow growth in production, use of traditional technology, etc.

Question 8.
Describe India’s economic situation during 1990-91.
Answer:
During 1990-91 India faced serious economic problems, Huge deficit in trade balance, reducing foreign exchange reserves, severe inflation and high budget deficit crippled the economy. Many economists were dissatisfied with the working of the Indian economy especially the public sector undertakings.

KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

Question 9.
What do you mean by LPG policies?
Answer:
The new economic policy or economic reforms were initiated in 1991. As these policies emphasised liberalisation, privatisation and globalisation, they were referred to as LPG policies.

Question 10.
What are economic reforms?
Answer:
Economic reforms refer to the adoption of policies to eliminate market barriers, encourage private sector participation in the economy, reduce fiscal deficit, reduce imports and increase exports, etc.

Question 11.
List the major initiatives under the economic reforms.
Answer:
The package of economic reforms consisted of the following major initiatives:

  1. A liberal industrial policy to allow foreign investment by privatisation of industries and abolishing licensing system.
  2. Automatic approval for Foreign Direct Investment (FDI) in many sectors.
  3. A liberal export-import policy for ensuring ease of export of goods and to obtain necessary raw materials.
  4. Reforming the banking and financial sector in accordance with internationally accepted standards.
  5. Reforms in the tax structure for ensuring increase in the number of tax payers and revenue.
  6. Restricting government interference in investments and also privatisation of public sector enterprises.

Question 12.
What are the effects of the new economic policy or economic reforms of 1991?
Answer:
The new economic policy and reforms of 1991 have helped India to grow at a faster pace. India is now considered one of the major as well as fastest growing economies in the world. Foreign investment in India has increased over the years. Many multinational companies are now operating in India.

The per capita GDP has increased. India has emerged as a leading exporter of services particularly software and information technology related products. The new economic policy has taken India towards a liberal or market economy. It has relieved India of many of the economic problems that she faced in 1990-91. More than anything else, India could withstand the economic recession that swept the world in 2008-09.

Question 13.
What is Digital India?
Answer:
Digital India is a campaign launched by the Government of India to ensure that Government’s services are made available to citizens electronically by increasing internet connectivity or by making the country digitally empowered in the field of technology.

Question 14.
What are the current programmes launched by the government in the field of agriculture and rural development?
Answer:

  1. Pradhan Mantri Fasal Bhima Yojana: To provide insurance cover to rabi and kharif crops and financial support to farmers in case of damage to crops.
  2. Pradhan Mantri Krishi Sinchayi Yojana: Irrigating the field of every farmer and improving water-use efficiency.
  3. Mahatma Gandhi National Rural Employment Guarantee Scheme: Guarantees one hundred days of employment in a year to adult members of any rural household willing to do public work- related unskilled manual work.
  4. Pradhan Mantri Gram Sadak Yojana: Providing good, all-weather road connectivity to unconnected villages.

Question 15.
List the current government programmes for industrial development
Answer:
1. Make in India:
To encourage multinational as well as domestic companies to manufacture their products in India and create jobs and help in skill enhancement.

2. Start-Up India and Stand-Up India:
Start-Up Iiadia scheme intends to build a strong eco-system for nurturing innovation and Startups in the country. The Stand-Up India scheme aims at promoting entrepreneurship among women and scheduled castes and tribes by facilitating bank loans between Rs. 10 lakh and Rs. 1 Crore.

3. Pradhan Mantri Mudra Yojana:
To provide loans from Rs. 50,000 to Rs. 10 lakhs to small businesses/startups/entrepreneurs to start/grow their business.

KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

Question 16.
Explain the current schemes of the government in the social sector.
Answer:

  1. Swachch Bharat Abhiyan: To fulfil Mahatma Gandhi’s dream of a clean and hygienic India.
  2. Skill India: To encourage youth to develop employability skills by recognition of prior learning or by providing training at affiliated centres.
  3. Pradhan Mantri Jan Dhan Yojana: A financial inclusion program that aims to expand and make access to financial services such as bank accounts, remittances, credit, insurance and pensions affordable.
  4. Pradhan Mantri Jeevan Jyoti Bima Yojana: A life insurance scheme aimed at increasing the life insurance cover in the country.
  5. Pradhan Mantri Suraksha Bima Yojana: An accident insurance scheme aimed at increasing accident insurance cover in India.
  6. Atal Pension Yojana: The scheme provides monthly pension based on the contribution amount to workers in the unorganised sector.

Question 17.
What are the current urban development programmes of the government?
Answer:

  1. Atal Mission on Rejuvenation and Urban Transformation (AMRUT): To improve the quality of living by providing basic civic amenities like water supply, sewerage, urban transport, parks and drive economic growth stressing on the need for people-centric urban planning and development.
  2. Pradhan Mantri Awas Yojana: Aims to provide affordable housing to the urban poor.
  3. Smart Cities Mission: To develop 100 cities in the country making them citizen-friendly and sustainable.

Multiple Choice Questions

Question 1.
The Planning Commission was replaced by _________ in 2015.
(A) National Planning Commission
(B) Yojana Aayog
(G) Five Year Plans
(D) NITI Aayog.
Answer:
(D) NITI Aayog.

KSEEB Class 8 Economics Important Questions Chapter 4 Government and the Economy

Question 2.
How many Five Year Plans have been completed so far?
(A) Nine
(B) Twelve
(C) Ten
(D) Thirteen.
Answer:
(B) Twelve

Question 3.
The period of the First Five Year Plan was
(A) 1951-56
(B) 1956-61
(C) 1961-66
(D) 1947-52.
Answer:
(A) 1951-56

Question 4.
Which of the following is not an agriculture and rural development programme?
(A) Pradhan Mantri Fasal Bima Yojana
(B) Pradhan Mantri Krishi Sinchayi Yojana
(C) Pradhan Mantri Mudra Yojana
(D) Pradhan Mantri Gram Sadak Yojana.
Answer:
(C) Pradhan Mantri Mudra Yojana

Question 5.
Pradhan Mantri Suraksha Bima Yojana is a scheme for
(A) providing life insurance
(B) skill development
(C) start-up businesses
(D) providing accident insurance.
Answer:
(D) providing accident insurance.

Fill In The Blanks

  • The Planning Commission was established in the year 1950
  • The twelfth Five Year Plan was implemented during the years 2012-2017
  • India is among the top ten largest countries in the world in terms of GDP
  • The current rate of poverty in India is about 22 per cent.
  • For many years India’s economic policy was agriculture oriented.