As per the expenditure method of computing Gross Domestic Product, the following expenditure are added:

1. Private final consumption expenditure, which includes total expenditure on final goods and services by individuals and households.
2. Government final consumption expenditure, which includes the expenditure incurred by the government on final goods and services.
3. Gross domestic capital formation, which includes the investment made by the firms on capital goods.
4. Net exports which is the excess of exports over imports.

As the sale of petrol and diesel cars rises, it implies that private consumption expenditure is also rising. A rise in private consumption expenditure leads to a rise in the Gross Domestic Product. So, an increase in the sale of petrol and diesel cars will lead to an increase in the Gross Domestic Product of the country. However, it will not lead to an increase in the welfare of the people because of the below-mentioned reasons.

1. As the sale of petrol and diesel cars rise, then the level of pollution will also rise m the big cities.
2. With a rise in the number of cars, the traffic congestion on the roads will worsen.
3. A rise in the number of cars will increase the demand for petrol and diesel. This will lead to a rise in the prices of petrol and diesel.
4. The already depleted reserves of petrol and diesel will be subjected to further depletion.

Contribution to GDP Generate employment Provide raw material to manufacturing industry Helps in international trade Use of transport or service sector

Source of Livelihood-The main source livelihood of many people is agriculture. Approximately 70 % of the people directly rely on agriculture as a mean of living.
Contribution to National revenue-Agriculture is the main source of national income for most developing countries.
Significance to the international trade-Agricultural products like sugar, tea, rice, spices, tobacco, coffee etc. constitute the major items of exports of countries that rely on agriculture. This helps to reduce countries unfavorable balance of payments as well as saving foreign exchange. This amount may be well used to import other essential inputs, machinery, raw-material, and other infrastructure that is helpful for the support of country’s economic development.
Marketable Surplus- The growth of agricultural sector contributes to marketable surplus. Many people engage in manufacturing, mining as well as other non- agricultural sector as the nation develops. All these individuals rely on food production that they might meet from the nation’s marketable surplus. As agricultural sector development takes place, production increases and this leads to expansion of marketable surplus. This may be exported to other nations.
Foreign Exchange Resources- The nation’s export trade depends largely on agricultural sector. For example, agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee accounts for approximately 18 % of the entire value of exports of a country. This demonstrates that agriculture products also continue to be important source of earning a country foreign exchange.
Great Employment Opportunities- Construction of irrigation schemes, drainage system as well as other suchactivities in the agricultural sector is important as it provides larger employmentopportunities. Agriculture sector provides more employment opportunities to the labor force that reduce the high rate of unemployment in developing countries caused by the fast growing population.

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Employment refers to that situation when a person willing to work at existing wage rate

Employment is a situation where the people who are willing to work they get work and a privilege wage

India opt for planning to utilize available resources efficiently and to establish social justice.

India inherited from the British a backward and stahfnant economy.It was backward as the level of output was low and was stagnant as the gdp growth was extremely low. Such an economy could not be developed itself,it needed a big push of investment to trace its path of growth and development.Hence ,the recourse to planning.

Import substitution policy was adopted to reduce foreign import and increase consumption of domestic goods.

Agarwal. I love u dearrrrrr

+ve of currency depreciation is-- 1. Reduce inflation -ve 2. Import is more expensive -ve of appreciation is __ 1. Export is more expensive +ve 2. Reduce deflation

(i) Appreciation of currency: When the value of domestic currency increases in relation to a foreign currency due to demand and supply forces in the free market, it is termed as appreciation of the domestic currency, (under flexible exchange rate system.)
(ii)Depreciation of currency: Depreciation of domestic currency occurs when the value of domestic currency decreases in relation to the value of foreign currency (under flexible exchange rate system) .

There are 4 main reasons- 1. Zamindari system. 2. Commercialisation of agriculture 3. Low level of productivity 4. Adverse effect of partition

Land settlement system , commercialisation, lack of technology ,

heavy traf

Landlord - tenant conflict Small land holdings

1. Gulf between owner and tiller 2. Forced commercialisation of indigo 3. British raj system and policies

Increase supply

Stage 1 mid- 60s-mid-70s During this stage scope of green revolution was restricted largely to wheat and rice region of the county. Stage2 mid-70s-mid-80s During this stage the impact of green revolution became widespread coverings most areas of the county and larger number of crops

Residency means that a foreign country has allowed you to live and work in that country, usually indefinitely. But, you are still considered to be a foreigner. You may not vote (exceptions do exisit) or stand for elections. You may be deported if you commit a crime. However, children born to you while you are resident in that country are usually citizens by birth.
Citizenship on the other hand is the most complete legal relationship between a person and a country. As a citizen you will have all political rights and you cannot be deported. However, if you are a naturalised citizen, your citizenship may be revoked if you became a citizen by fraud.

Land ceiling and land holding

(i) Related to less developed countries: Labour is underutilised as indicated by mass unemployment in countries like India.
(ii) Related to developed countries: Capital is underutilized during depression when production decreases owing to lack of demand.

There are usually hundreds of banks in a country. There should be some agency to regulate and supervise their proper functioning. This duty is performed by the central bank. It also performs banker's bank function Central Bank keeps the cash balances of Commercial Banks and issues loans to them on requirements in the same manner as the Commercial Bank does for its customers. A Central Bank has almost the same relationship with the other Commercial Banks of the country that the Commercial Banks have with the common public. That is why the Central Bank is also called banker's bank.

The process of colonialism started during the Industrial Revolution when excess of wealth and things produced were available with the western countries. The process of winning over the Asian and African countries by the western countries and establishing their rule in those countries is known as colonialism.

HYV(high yielding variety) seeds are known as miracle seeds

HYV( high yielding variety) seeds are known as miracle seeds.

<div>The credit creation by commercial banks is determined by amount of initial deposit and the legal reserve ratio.
Suppose customer deposits Rs. 1000 in bank. Bank has to pay interest on this amount for which bank should lend this money to someone. A part of the amount is to be retained with bank to meet its customer’s obligations. Say, if LRR is 20%, the banks will keep 20% of deposits as reserves and will lend remaining 80% i.e. Rs.800. Those who borrow will spend this money and same 800 will come back to banks in form of deposits. This raises the total deposits to Rs.1,800 now. Banks again keep 20% of Rs. 800 as reserve and lend Rs. 640 to those who needs. This will further raise the deposits with banks. In this way deposits will go on increasing 80% of the last deposit. The number of times the total deposit will become, is determined by money multiplier i.e. 1/LRR = 1/0.2 = 5 times.
Total deposits will be Initial Deposits X Money Multiplier = Rs.1000 X 5 = Rs. 5,000Read more on Sarthaks.com - https://www.sarthaks.com/297682/illustrate-with-the-help-of-hypothetical-numerical-example-the-process-credit-creation</div>

Low level of productivity, high degree of vulnerability ,backwardness, stagnation and land revenue system.

Low productivity, stagnation and land revenue system

2 book h ek Marco economy nd indian economy

It is given in TR jain

The difference between rural and poverty lies in the nature of poverty in both areas. The poor are identified on the basis of their occupation and ownership of assets. Rural poor are the poor people residing in villages and small towns. The rural poor work mainly as landless agricultural labourers, cultivators with very small land holdings, landless labourers and tenant cultivators. On the other hand, the urban poor is the poor people living in metros and big cities and those who have migrated from rural areas in search of alternative employment and livelihood. Urban labourers do a variety of casual jobs, sell a variety of things on roadsides and are engaged in various other such activities. Urban poor are unemployed, underemployed or employed in low productivity jobs which earns them low wages. It can be seen from the given table that the poverty ratio has shifted from rural to urban areas.

British rule was the colonial rule

no