KSLU Solved Question Papers
Economics II (Hons)
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 3
2021 Mar Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 3 Economics II (Hons) 2021 Mar Question Paper with Solutions
First published on munotes.in on 2 November 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2021 Mar examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2021 Mar examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2021 Mar examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 2½ hours · Total marks 70 · 14 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Define Economic Development. Explain the factors determining Economic Development.[10]
Answer
For full marks, cover: a definition of economic development (growth plus structural change and better living conditions; qualitative as well as quantitative) and how it differs from growth; the factors that determine it, in two groups: economic (capital formation, natural resources, technology, human resources, the agricultural base, industrialisation and structural change, infrastructure, the market and foreign trade, the financial system) and non-economic (population, social institutions and attitudes, education and health, political stability and governance, the role of the State, with articles 38 and 39 of the Constitution); Indian illustrations; a conclusion.
Definition of economic development
Economic development is a long-run process in which a country's real income per head rises. Along with it, the structure of the economy changes and the conditions of life improve. It brings a shift of workers out of low-productivity agriculture, rising literacy and life expectancy, falling infant mortality, less poverty and a fairer distribution. It is qualitative as well as quantitative.
Economic growth is narrower: a rise in real output alone. Output can rise while poverty and illiteracy remain, so growth is necessary for development but not sufficient.
A. Economic factors
1. Capital formation. Development needs factories, machines, roads, dams and power stations. These come from saving and investment. Poor countries fall into Nurkse's vicious circle, where low income keeps saving and investment low. India's fixed investment is now about 30.0 per cent of GDP.
2. Natural resources. Land, water, forests and minerals are the base of production. But resources alone do not bring development. They need capital, skills and good management to be used well.
3. Technology. Better techniques raise the output of every worker and every hectare. The high-yielding seeds of the Green Revolution are an Indian example.
4. Human resources. A healthy, educated and skilled workforce produces more and adopts new methods faster.
5. A productive agricultural base. Agriculture supplies food, raw materials and a market for industry. A farm surplus releases workers for industry. In India agriculture still employs about 42.4 per cent of workers but produces about 18 per cent of output, which slows development.
6. Industrialisation and structural change. Development moves workers to industry and services, where output per worker is higher. India's output moved to services, but employment moved more slowly.
7. Infrastructure. Transport, power, communications and irrigation lower costs and link markets.
8. Size of the market and foreign trade. A larger market makes investment profitable. Exports widen the market, and imports bring machines and technology.
9. The financial system. Banks and capital markets collect savings and lend them for production.
B. Non-economic factors
1. Population. Rapid population growth can absorb the gains of development. India's fertility rate has fallen to 1.9 (2023), below the replacement level. Its large working-age population can become a demographic dividend if it is educated and employed.
2. Social institutions and attitudes. A society that values work, saving, education and new ideas develops faster. Caste and gender barriers that keep people out of productive work slow it down.
3. Education and health. Literacy rose from 18.3 per cent (1951) to 73.0 per cent (2011), and life expectancy at birth reached 70.3 years (2019-23). These gains make people more productive and are also part of development itself.
4. Political stability and governance. Order, honest administration, secure property and quick justice encourage long-term investment.
5. The role of the State. The State builds infrastructure, provides education and health, regulates markets and reduces inequality. Article 38 of the Constitution of India directs it to secure a social order in which "justice, social, economic and political, shall inform all the institutions of the national life". Article 39(c) directs that the economic system should not result in "the concentration of wealth and means of production to the common detriment".
| Group | Factors | Indian example |
|---|---|---|
| Economic | Capital, technology, agriculture, infrastructure | Investment about 30 per cent of GDP; Green Revolution |
| Non-economic | Population, education, health, governance, the State | Fertility 1.9; literacy 73.0 per cent; articles 38 and 39 |
How the factors combine
The factors depend on each other. Capital without skilled workers is wasted, and skilled workers without jobs emigrate or stay idle. Both are held back by poor infrastructure and unstable policy. Development happens when economic and non-economic factors improve together. India's own record shows this. Investment and reforms raised growth after 1991, but development moved more slowly where schooling, health and jobs lagged behind.
Conclusion. Economic development is growth in real income per head together with structural change and a better quality of life. It is determined by economic factors such as capital formation, natural resources, technology, human resources, agriculture, industrialisation, infrastructure, markets and finance. Non-economic factors such as population, social attitudes, education and health, governance and the role of the State also shape it. India's progress in investment, literacy, health and fertility shows these factors at work. Its low farm productivity and slow shift of workers out of agriculture show what remains to be done.
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