CBSE Class 11 Economics Rural Development Assignment

MCQ Questions for NCERT Class 11 Economics Rural Development

Question: Which of the following is an institutional source of rural credit?
(A) Moneylenders
(B) Regional Rural Banks
(C) Traders
(D) Landlords

Answer: B

Question: What was the growth rate of agricultural output during 2007-12?
(A) 32% per annum
(B) 6% per annum
(C) 1.5% per annum
(D) 5% per annum

Answer: A

Question: Which among the following is an initiative taken for the development of rural India?
(A) Human Capital Formation
(B) Land Reforms
(C) Poverty Alleviation
(D) All of these

Answer: D

Question: When was the National Bank for Agricultural and Rural Development set up?
(A) 1962
(B) 1972
(C) 1982
(D) 1992

Answer:  C

Question: Which source of credit had emerged to fully integrate the formal credit system into the overall rural social and community development?
(A) Self-help Groups
(B) Regional Rural Banks
(C) Commercial Banks
(D) Land Development Banks

Answer: A 

Question: Which among the following is a process that involves the assembling, storage, processing,transportation, packaging, grading, and distribution of different agricultural commodities acrossthe country?
(A) Agricultural Management
(B) Agricultural Banking
(C) Agricultural Diversification
(D) Agricultural Marketing

Answer: D

Question: What is the name of the vegetable and fruit market in Andhra Pradesh?
(A) Apni Mandi
(B) Hadapsar Mandi
(C) Rythu Bazars
(D) Uzhavar Sandies

Answer: C

Question: Blue revolution is associated with
(A) Indigo cultivation
(B) Poultry Farming
(C) Fisheries
(D) Availability of drinking water

Answer: C 

Question: Which status has been accorded to the retail chains and supermarkets for selling organic food?
(A) Eco Status
(B) Sustainable Status
(C) Nutritional Status
(D) Green Status

Answer: D

Question: Which Indian state has been held as a success story in the efficient implementation of milk cooperatives?
(A) Punjab
(B) Gujarat
(C) Uttar Pradesh
(D) West Bengal

Answer: B

Question: How much do the “inland sources” contribute to the total fish production in India?
(A) 64 percent
(B) 39 percent
(C) 50 percent
(D) 75 percent

Answer: A

Question: Name the state which is held as a success story in the efficient implementation of milk cooperatives.
(A) Maharashtra
(B) Jammu and Kashmir
(C) Gujarat
(D) Andhra Pradesh

Answer: C 

Question: The problems faced in rural banking are
(A) Insufficient rural credit
(B) Growing overdue
(C) Inadequate amount of sanction
(D) All of these

Answer : D

Question: The institutional aource of credit whose area of operation is the one where banking facilities and cooperatives are absent and which operate at the district level is:
(A) Regional rural bank
(B) Commercial bank
(C) Self-help group
(D) NABARD

Answer : A

Question: The sector providing alternate livelihood options to 70 million small and marginal farmers is:
(A) Livestock
(B) Agro-processing
(C) Apni Mandi
(D) Fisheries

Answer : A

Question: AMUL stands for :
(A) Anand Multiple Union Ltd.
(B) Agriculture and Milk Union Ltd.
(C) Anand Mil Union Ltd.
(D) Anand Manufacturing Union Ltd.

Answer : C

Question: Growth in rural marketing relates to
(A) Provision of physical infrastructure
(B) Regulation of markets
(C) Cooperative farming
(D) All of these

Answer : D

Question: Production of a diverse variety of crops rather than one specialised crop is called:
(A) Diversification of production activity
(B) Diversification of crop production
(C) Diversification of employment
(D) All the above

Answer : B

Question: Credit taken for a period of 15 years is
(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) All of these

Answer : C

Question: Why is the minimum support price fixed by the government ?
(A) For the government's benefit
(B) To safeguard the interest of farmers
(C) To save the interest of consumers
(D) None of these

Answer: B

ASSERTION AND REASON QUESTIONS

Question: Assertion:.Diversification of crops shifted from single cropping system to multiple’’cropping
Reason : It increases the risk of the market arised due to price fluctuation .
(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) s false but Reason ( R ) is true

Answer : C

Question: Assertion : Farmers were using primitive technology of production .
Reason : Farmers were unaware of the technology and were poor.
(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) s false but Reason ( R ) is true

Answer : A

Question: Assertion : Eong term credits are required for purchasing machinery and constructing fences etc.
Reason : These are taken for 12 months to 5 years.
(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) s false but Reason ( R ) is true

Answer : C

Question: Assertion : NABARD was set up to give loans to farmers.
Reason : It is an Apex body to coordinate all institutions involved in the rural financing system.
(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) s false but Reason ( R ) is true

Answer : B 

Question: Assertion : Rural economic development is essential for Indian Economic development .
Reason : Rural development creates opportunities in rural areas for education .
(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) s false but Reason ( R ) is true

Answer: A

Question: Assertion : Role of Information Technology was essential in the Rural sector.
Reason : Farmers were interested in learning computers
(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) s false but Reason ( R ) is true

Answer : B

Case Study Questions  Rural Development Class 11 Economics

The policy intervening rural credit 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 the demand side.

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

Answer: Cooperative credit societies , SBI,Commercial Banks, Regional rural banks etc.

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

Answer: Institutional and non-institutional

Question: Discuss the role of cooperatives in Rural Credit 

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

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

Answer: MSP Policy, Regulated markets, Subsidised transport , etc.

The government is fast tracking the integration of e- National agricultural market (e NAM) with farmer producer organizations (FPO) and warehouses , which have been declared as market yards to provide end-to-end connectivity to farmers.
It will then connect these FPOs and warehouses with the transport aggregator mobile App KISAN RATH for seamless supply linkages to integrate and intra state buyers. The app brings together 5 lakh trucks and 20,000 tractors on a mobile platform for transporting farm produce to markets from Farm gate.

Question: What are the arrangements of agricultural marketing in India? 

Answer: Govt. has organised mandis in the local areas and also now the latest farmer’s bill is providing new opportunities to the farmers.

Question: Define Agricultural marketing . 

Answer: It includes gathering the produce after harvesting , processing ,grading, packaging for future sale.

Question: Highlight the problem of Distress sale in India. 

Answer: When farmers are compelled to sell their produce immediately after the harvest, no matter how low the market price is. 

BILL ON CONTRACT FARMING
The farmers ( Empowerment and Protection ) Agreement of Price Assurance and Farm Services Bill, 2020/Provisions:
● Farmers can enter into a contract with agribusiness firms ,processors , Wholesalers ,Exporters or large retailers for sale of future farming produce at a pre-agreed price .
● Marginal and small farmers , with land less than five hectares, to gain via aggregation and contract ( Marginal and small farmers account for 86% of total farmers in Indi(A).
● To transfer the risk of market unpredictability from farmers to sponsors .
● To Enable farmers to access modern tech and get better inputs.
● To reduce the cost of marketing and boost farmer’s income .
● Farmers can engage in direct marketing by eliminating intermediaries for full price realization . Effective dispute resolution mechanism with redressal timelines.

Question: How will you relate the above with the general reforms in Agricultural marketing ? 

Answer: It can be related to cooperative marketing societies . Removal of the role ofintermediaries .

Question: Will the above give substantial rise in Acreage ( area under cultivation) 

Answer: Farmers will get the direct benefits of production ,so more land will be used for the same.

Question: How will it affect substantial farming? 

Answer: It will motivate the farmers to commercialize their produce for more benefits or profits.

 

Important Notes on CBSE Class 11 Economics Rural Development

RURAL DEVELOPMENT
It is a broad word that focuses on taking action to develop regions that are falling behind in the overall growth of the village economy.

Objectives of Rural Development:
● Development of human capital resources including education and health services.
● Land reforms.
● Development of productive resources of each locality.
● Infrastructure development.
● Opportunities to diversify in non- farm activities.
● Special measures for alleviation of poverty.

RURAL CREDIT
Rural credit means credit for the farming communities. Farmers require credit for various purposes like purchasing agricultural tools and machines, digging wells and tube wells, purchasing seeds, fertilizers, pesticides, etc. The time between seeding and harvesting is very long. As a result, farmers have to borrow money to meet their demands at this time 

Sources of Rural Credit:
1. Non-institutional sources: It includes money lenders, traders, landlords, friends, relatives, etc.
2. Institutional sources: It includes:
● Co-operative credit societies: They provide adequate credit at reasonable rate of interest. They also provide financial guidance in the planning of agricultural operations, assistance in raising crops & its productivity. Currently, cooperatives account for 43% share in credit flow of agricultural credit.
● Commercial Banks: It provides both direct & indirect loans for the agriculture & allied activities for a maximum period of 15 years.
● Regional Rural Banks: These were set up in 1976 to provide adequate credit at cheaper rates. Nearly, 90% of the loans RRBs are provided to the weaker sections.
● National Bank for Agriculture and Rural Development (NABARD): It was set up in July 1982 with an authorized share capital of Rs.500 Crores on a 50-50 basis between RBI & the union govt. Deputy Governor of RBI is the chairman of NABARD.

RURAL BANKING: A CRITICAL APPRAISAL
After the nationalisation of commercial banks in 1969, the rapid expansion of the banking system in rural areas has been witnessed. Rural banking has raised the level of rural farm and non-farm output, income and employment especially after the green revolution.

ADVANTAGES:
Raising farm and non-farm output by providing services and credit facilities to farmers.
● Generating credit for self employment schemes in rural areas.
● Achieving food security which is clear from the abundant buffer stocks of grains.

LIMITATIONS:
Small and marginal farmers receive only a very small portion of the institutional credit.
● Rural banking is suffering from the problems of large amounts of over dues and default rate.
● The sources of institutional finance are inadequate to meet the requirements of agricultural credit.
● There exist regional inequalities in the distribution of institutional credit.
It is suggested that more and more regional rural banks should be set up to meet the credit needs of the rural and backward areas of India.

AGRICULTURAL MARKETING SYSTEM
Agricultural Marketing is the process of putting together, storing, processing, transporting, packaging, grading, and distributing various agricultural commodities throughout the country.

Measures to Improve Agricultural Marketing:
Following independence, the government has taken a number of steps to enhance the country's agricultural marketing system.
In order to regulate the markets, it has enacted the following measures:
● Regulated Markets: The first measure was regulation of markets, to create orderly and transparent marketing conditions. This is set up to safeguard farmers from the misdeeds of sellers and brokers.
● Cooperative Marketing: Marketing societies are formed by farmers to sell the output collectively and to take advantage of collective bargaining for obtaining a better price. However, cooperatives have not been able to function properly in the recent past due to inadequate coverage of farmer members, inefficient management etc.
● Infrastructural facilities: Govt. had also provided infrastructural facilities like roads. railways, warehousing. old storage and processing units in order to develop the rural sector of India.
● Standardization and Grading: Grading and quality control helps farmers to get good prices for quality products produced by them. Also it simplifies the task, and enhances the efficiency of their work by proper segregation and bifurcation of output of different grades and standards.

AGRICULTURAL DIVERSIFICATION IN INDIA
Diversification is an emerging challenge in the context of rural development. It has two aspects:
A. Diversification of Crop Production- It includes growing a variety of crops i.e. multiple cropping systems. This also involves shifting cropping patterns from food grains to cash crops. The main aim is to promote the shift from subsistence farming to commercial farming.
B. Diversification of Productive Activity- It includes shift from agriculture to other activities like livestock, poultry, fisheries, etc. This will provide an alternative source of money while also providing a sustainable livelihood. It includes:
● Animal husbandry: Animal husbandry is the practice of livestock production, as well as breeding and taking care of cattle etc. in order to gain economically.
● Fisheries: For the fishing communities, the water bodies are the provider and mother. Hence, water sources are an integral part of the lives of the fishing communities. Fisheries in India have progressed significantly as a result of increased financial allocations and the adoption of new technologies in fisheries and aquaculture.
● Horticulture: Horticulture is the branch of agriculture concerned with growing plants for human consumption, therapeutic purposes, and ornamental gratification.
● Other Options: IT has played a crucial role in looking for options other than agricultural and farm activities which would help in the sustainable development.

ORGANIC FARMING
Organic farming is the natural way of growing food. Synthetic chemical fertilizers and genetically engineered organisms are not used in this procedure. It is both environmentally friendly and necessary for long-term development. It has a zero impact on the environment.

ADVANTAGES:
● Organic farming is less expensive.
● It generates income through international exports as the demand for organically grown crops is increasing.
● Organically grown food has more nutritional value than chemical farming.
● It increases employment opportunities as it requires more labor.
● The output is pesticide free & produced in an environmentally sustainable way.

LIMITATIONS:
● Lack of awareness and willingness on the part of farmers to adopt new technology.
● There is inadequate infrastructure & marketing facilities.
● The output of organic farming is much less, so they are costly.
● Choice of production of off season crops is limited in organic farming.
● Rural development is an action plan for the economic and social upliftment of rural areas.

• Key issues in rural development.
(i) A robust system of rural credit.
(ii) A system of marketing that ensures remunarative price to the farmer for his produce.
(iii) Diversification of crops that reduces risks of production and induces commercialisation of forming.
(iv) Diversification of production activity with a view to find alternative means of sustainable living other than crop- cultivation.
(v) Promotion of organic farming with a view to make crop cultivation environmental friendly as well as a sustainable process over a long period of time.

• Rural credit means credit for the farming families. Farmers require credit for various purposes

• Sources of rural credit in India -
1. Non- institutional sources are money lenders, traders and commission agents, landlord, relatives and friends.
2. Institutional sources are as follows -
(i) Co-operative credit societies.
(ii) Commercial Banks
(iii) Regional banks
(iv) NABARD (National Bank for Agriculture and Rural Development.)

• Agricultural marketing includes - gathering the produce after harvesting, processing the produce, grading the produce according to its quality, packaging the produce according to preferences of buyers, storing the produce for future sale and selling the produce when price lucrative.

• Defects of agricultural marketing -
(i) Inadequate ware houses
(ii) Multiplicity of middlemen
(iii) Malpractices in unregulated markets.
(iv) Lack of Adequate finance
(v) Inadiquate means of transport and communication.

• Measures adopted by the government to improve marketing system -
(i) Regulated markets.
(ii) Co-operative agricultural marketing societies
(iii) Provision of warehousing facilities
(iv) Subsidised transport.
(v) Dissimination of marketing imformation.
(vi) Buffer stocks and PDS (Public Distribution System)

• Diversification in agriculture activities- It has two aspects.
1. Diversification of crop production refers to a system of multiple cropping rather than mono cropping. It has two advantages :
(i) It lowers the risk of farming on account of failure of monsoon
(ii) It enhances the scope for commercialisation of farming.
2. Diversification of productive activities implies a shift from cropfarming to non-farming areas of employment. Non-farm areas of employment include -
(i) Animal husbandry
(ii) Fisheries
(iii) Horticulture
(iv) Cottage and household industry
(v) Information technology - every village a knowledge centre.

• Organic farming is a system of farming that maintains, exhances and restores the ecological balance. It helps in sustainable, development in the agricultural sector, In organic forming, farmers use organic manuros, bio-fertilizers and organic pesticides.

• Advantages of organic farming -
(i) Inexpansive process
(ii) Generates income
(iii) Healthier and tastier food.
(iv) Solves unemployment problem.
(v) Envirnment friendly.

• Organic farming involves labour - intensive process of production of labour so India has comparative advantage in organic farming.
 

ONE MARK QUESTION

Question: What is rural development?
Answer : Rural development is an action plan for the economic and social upliftment of rural areas.

Question: What is meant by agricultural diversification?
Answer : Agricultural Diversification means a major proportion of the increasing labour force in the agricultural sector needs to find alternate employment opportunities in other non-farm sectors.

Question: What is TANWA?
Answer : TANWA (Tamil Nadu Women in Agriculture) is a project initiated in Tamil Nadu where rural women find employment in non-farm jobs, as well as they are trained in latest agricultural techniques.

Question: What is ‘Golden Revolution’?
Answer : The period between 1991-2003 is called ‘Golden Revolution’ because during this period the nanned investment in horticultine became highly productions and the sector emerged as a sustainable livelihood option.

Question: Write two instruments to safequard the interests of farmers by the government.
Answer : Two instruments are fixation of minimum support price (MSP) buffer stock.

Question: What is co-operative marketing?
Answer : Co-operative marketing is a measure to ensure a fair price ot farmers . Member farmers sell their surplus to the co-operative society which substitutes collective bargaining in place of individual bargaining and hence provides best advantages to the farmers.

Question: What do you mean by ‘Operation Flood’?
Answer : From 1966 onwards operation flood is a system whereby all the farmers can pool their milk produce according to different grading (based on quality) and the same is processed and marketed to urban centres through co-operatives.

Question: What do you mean by micro credit programme.
Answer : Credit provisions made by self help groups (SHG) to its different members is known as micro credit programme.

Question: Define non-institutional sources of agricultural credit.
Answer : Non-institutional sources include money lenders, traders, commission agents, landlords, relations and friends

Question: What is agricultural marketing?
Answer : Agricultural marketing is a process of marketing in which farm produce are distributed through wholesellers and stockists to ultimate consumers.

Question: Mention two limitations of rural banking.
Answer : Two limitations of rural banking are inadequate finance and large amount of overdues and default rate.

Question: Name two institutional sources of agricultural credit.
Answer : Two institutional sources of agricultural credit are co-operative credit societies and commercial banks.

Question: Which state has an efficient implimentation of milk co-operatives?
Answer : Gujrat state has the efficient implimentation of milk co-operatives.

Question: When was NABARD established?
Answer : NABARD (National Bank for Agriculture and Rural Development) was established in 1982

Question: What is sustainable development?
Answer : Sustainable development is a system of a long- period sustaibable process along with an eco friendly envirnment.