Q.Write any two limitations of real per capita income as an index of economic development.
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🔒 Start your 14-day free trial to unlock the full solution →Concept understanding — Comparative Development Indicators
Comparative development indicators are the specific facts and figures — dates of key plans and reforms, health outcomes, and poverty levels — that let us place India, China and Pakistan side by side and see how each has fared. Knowing these landmark indicators is what makes a rigorous comparison possible rather than a vague impression.
A few reference points are essential. On planning, Pakistan's First Five Year Plan commenced in 1956, while China's growth-defining market reforms were introduced in 1978; India had begun its own First Five Year Plan in 1951. On health, the maternal mortality rate — the number of women dying from pregnancy-related causes per lakh of live births — is markedly high in Pakistan compared with China, reflecting weaker maternal healthcare. On poverty, the proportion of people living below the poverty line is higher in India than in Pakistan in the standard comparison, and both exceed China, which has driven poverty down sharply through rapid, broad-based growth. …
Real per capita income (average income per person, adjusted for prices) is a commonly used but limited measure of development, mainly because it is only an average and ignores how income is actually distributed and what it is spent on. …
Real per capita income is limited as a development index mainly because it is merely an average figure (masking inequality) and because it ignores non-monetary dimensions of well-being such as health, education and environmental quality.
- It is only an average, and hides distribution — a rise in real per capita income can occur purely because a small rich section's income has grown sharply, while the majority's income has stagnated or even fallen; per capita income does not reveal how equally (or unequally) that income is actually distributed across the population. …
Showing the 12 most recent of 29 on this concept.
- CBSE 2026Set 58/3/11 markMCQQ.Identify, which of the following is an income indicator. (Choose the correct option) Options : (A) Mortality rate (B) Malnourishment (C) GDP per capita (D) Morbidity rate
›Reveal solutionSolution
The question asks which option is an income indicator. Among the given choices, only GDP per capita measures income (output per person), while the others measure health or deprivation outcomes. The correct option is (C) GDP per capita.
The first thing to get clear is what an "income indicator" actually means. In economics, an indicator is a statistic used to measure or represent a particular aspect of economic performance or well-being. An income indicator specifically captures the flow of money or output — how much people earn or produce on average. It tells you about the purchasing power or material standard of living in a region.
Now look at the options one by one.
Mortality rate (Option A) is a demographic or health indicator. It measures the number of deaths per thousand people in a population. It tells you about survival and public health, not about how much income people earn. Similarly, morbidity rate (Option D) measures the frequency of illness or disease in a population — again a health outcome, not an income measure.
Malnourishment (Option B) is a nutritional deprivation indicator. It reflects whether people are getting enough calories or essential nutrients. While poverty and low income can cause malnourishment, the indicator itself does not measure income — it measures a physical condition.
GDP per capita (Option C) stands for Gross Domestic Product divided by the total population. GDP is the total market value of all final goods and services produced within a country in a given year. Dividing by population gives the average output (and thus average income) per person. This is a classic income indicator used in macroeconomics and development studies. …
- CBSE 2026Set ANNUAL1 markMCQQ.Write True or False: The process of economic development is not continuous and long term process.(a) True(b) False
›Reveal solutionSolution
False — economic development is a continuous, long-term process.
Economic development — a sustained rise in real income accompanied by structural and qualitative improvements in the economy and quality of life — takes place gradually, over a long period of time, and is a continuous process. It cannot be achieved overnight. Therefore the statement that the process of economic development is not continuo …
- CBSE 2026Set ANNUAL1 markQ.Write the answer in one sentence: What was India’s Human Development Index (HDI) in 2014?
›Reveal solutionSolution
India's HDI in 2014 was about 0.609 (medium human development).
According to the Human Development Report data, India's HDI value in 2014 was about 0.609, which placed India in the 'medium human development' category (its rank was around 130 out of the countries ranked). (The exact value may va …
- CBSE 2026Set ANNUAL1 markMCQQ.Read the following Assertion (A) and Reason (R). Choose the correct alternative given below: Assertion (A): China has the highest life expectancy in the world. Reason (R): Maternal mortality rate of India is higher than that of China.(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, but 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
›Reveal solutionSolution
China does not have the world's highest life expectancy, so the Assertion is false. But it is correct that India's maternal mortality rate exceeds China's, so the Reason is true.
Assertion (A): "China has the highest life expectancy in the world." This is false. While China's life expectancy is notably higher than India's and Pakistan's (the countries compared in this chapter), several other countries — such as Japan and various developed European nations — have considerably higher life expectancy than China. The syllabus compares only India, Pakistan and China on this indicator; China leads among these three, but that is not the same as having the highest life expectancy in the world.
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- CBSE 2026Set ANNUAL1 markMCQQ.Read the following statements carefully and choose the correct answer among the given alternatives: Statement 1: In both India and Pakistan, the service sector has been emerging as a major source of development. Statement 2: Among China, Pakistan and India, Pakistan has the lowest life expectancy rate.(a) Both the Statements are true(b) Both the Statements are false(c) Statement 1 is true and Statement 2 is false(d) Statement 2 is true and Statement 1 is false
›Reveal solutionSolution
Both statements correctly reflect the standard comparative data for India, Pakistan and China used in this chapter.
Statement 1: "In both India and Pakistan, the service sector has been emerging as a major source of development." This is true. Unlike China, where manufacturing/industry has been the primary engine of growth, both India and Pakistan have seen the service sector (IT, telecommunications, trade, finance, etc.) grow to become the largest and fastest-growing contributor to GDP and a major driver of development in recent decades.
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- CBSE 2025Set ANNUAL1 markMCQQ.Read the following Assertion (A) and Reason (R). Choose the correct alternative given below: Assertion (A): China has the lowest density of population compared to India and Pakistan. Reason (R): China has a very large geographical area.(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 but 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
›Reveal solutionSolution
Both the Assertion and Reason are true, and the Reason genuinely explains the Assertion — option (a).
Population density (persons per sq. km) depends on both population size and total geographical area. Among the three neighbours compared in this chapter, China has a vastly larger land area than India or Pakistan, while its population, though the largest in absolute numbers historically, is spread over that much bigger area. As a result, China's population density works out lower than that of both India and Pakistan (both of which have much smaller geographical areas relative to their populations) — making Assertion (A) true.
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- CBSE 2025Set ANNUAL1 markQ.What is density of population?
›Reveal solutionSolution
Population density = number of people per unit (sq. km) of land area.
Density of population is calculated as the total population of a region or country divided by its total geographical area (usually expressed as persons per square kilometre). It is an important comparative indicator of how concentrated a population is relative to the land available to support it, and is used (as in the comparative study of India, Pakistan and China) to understand pressure on land, resources and infrastructure. A higher population density generally indicates greater pressure on housing, food, infrastructure and public s …
- CBSE 2025Set ANNUAL1 markMCQQ.Identify the correct statement from the following :(a) India's economic growth rate is higher than that of China.(b) India adopted Commune System of Production.(c) India is the second largest economy in the world.(d) India is behind China in HDI ranking.
›Reveal solutionSolution
Among the four statements, only "India is behind China in HDI ranking" is factually correct — India's growth rate has generally trailed China's, India never adopted a Commune system, and China's economy is larger than India's.
- Option (i) is incorrect — China's economic growth rate has historically been higher than India's for most of the post-1978 reform period, not the other way round.
- Option (ii) is incorrect — the Commune system of production (collectivised agriculture) was adopted by China under Mao, not India.
- Option (iii) is incorrect — China, not India, is (depending on the measure used) typically ranked as the second (or sometimes first) largest economy in the world; India trails behind. …
- CBSE 2025Set ANNUAL1 markMCQQ.Which of the following statements is true in relation to Pakistan, India and China ?(a) Pakistan is ahead of both India and China in terms of total population.(b) Pakistan is ahead of both India and China in terms of rate of urbanisation.(c) Pakistan is ahead of both India and China in terms of density of population.(d) Pakistan is ahead of both India and China in terms of fertility rate.
›Reveal solutionSolution
Of the four comparisons, Pakistan genuinely has a higher population density than both India and China; it trails both on total population, urbanisation, and is not uniquely ahead on fertility rate among the three.
- Option (i) is incorrect — Pakistan's total population is much smaller than both India's and China's (India and China are the two most populous countries in the world).
- Option (ii) is incorrect — Pakistan's rate of urbanisation is not ahead of both India and China; in fact China's urbanisation rate is considerably higher than both India's and Pakistan's.
- Option (iii) is correct — Pakistan has a relatively small land area and a sizeable population concentrated in it, giving it a higher density of population (persons per sq. km) than the far larger India and China. …
- CBSE 2024Set 58/3/11 markMCQQ.On the basis of the data given below, identify the incorrect statement with reference to annual growth of GDP (%) : Annual Growth of Gross Domestic Product (%), 1980 – 2017Alternatives : (A) Pakistan and China experienced a fall in growth rate during 2015 – 2017. (B) China achieved double-digit growth rate in 1980 – 1990. (C) GDP of India accelerated moderately in 2015 – 2017 period. (D) Pakistan was ahead of India during 1980 – 2017 in terms of GDP.
(Country 1980–90 2015–2017): India 5·7 7·3 ; China 10·3 6·8 ; Pakistan 6·3 5·3. ›Reveal solutionSolution
The question asks us to identify the incorrect statement about GDP growth rates across three periods for India, China, and Pakistan. Statement (D) confuses growth rate with absolute GDP level — Pakistan's higher growth rate in one period does not mean its total GDP was larger.
The data table shows annual GDP growth rates (percentage change per year) for three countries across two time windows: 1980–90 and 2015–17. Growth rate tells us how fast an economy is expanding, not how large it is. A smaller economy can grow faster than a larger one without ever catching up in absolute size — think of a sapling growing 20% per year versus an oak growing 5%; the oak remains far bigger.
Let's examine each statement against the data:
(A) Pakistan and China experienced a fall in growth rate during 2015–2017.
Pakistan's growth rate dropped from 6.3% (1980–90) to 5.3% (2015–17); China's fell from 10.3% to 6.8%. Both declines are clearly visible in the table. This statement is correct.
(B) China achieved double-digit growth rate in 1980–1990.
The table shows China at 10.3% for 1980–90, which is above 10%. Double-digit means ≥10%. This statement is correct.
(C) GDP of India accelerated moderately in 2015–2017 period.
India's growth rate rose from 5.7% to 7.3% — an increase of 1.6 percentage points. The word "moderately" fits this steady but not explosive improvement. This statement is correct.
(D) Pakistan was ahead of India during 1980–2017 in terms of GDP.
Here's the trap. Pakistan's growth rate was higher than India's in 1980–90 (6.3% vs. 5.7%), but the statement claims Pakistan was "ahead in terms of GDP." GDP itself is a stock — the total value of output — measured in currency units (dollars, rupees). Growth rate is a flow, a percentage. The table gives us no information about the absolute size of each country's GDP, only how fast it grew. …
- CBSE 2024Set ANNUAL1 markMCQQ.The indicator of economic development is -(a) Private income(b) Gross Domestic Product(c) Net investment(d) National income and per capita income
›Reveal solutionSolution
The indicator of economic development is national income and per-capita income — option (d).
Economic development is reflected in a sustained rise in a country's output and the average standard of living. The main indicators of this are the growth of national income (total output) and, more importantly, per-capita income (national income divided by population …
- CBSE 2024Set ANNUAL1 markQ.Fill in the blank: The Human Development Index was prepared by ________.
›Reveal solutionSolution
The HDI is prepared by the UNDP.
The Human Development Index (HDI) is a composite index (based on health/life expectancy, education and per-capita income) prepared and published annually by the United Nations Development Programme (UNDP) in its Human Development Report. It was conceived by the economist **Mahbub …
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