Economics(Paper-4) - Shivaji University

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4) Industrial Development : Another important function of the government is to develop the economy industrially.The private sector does not have the resources and the willigness to invest in basic and key industries. They may start consumer goods industries. Thus, it is the government, which can set up basic industries to help the private investor as well as the general public. Therefore, government play an important role in economic development through strengthening the industrial base. 5) Agriculture : Agriculture is the main occupation of a majority of the people in underdeveloped countries and it provides not only employment to large section of the economy but also contributes as significantly to National Income. Recently budget of India in 2012 more investment as well as credit facilities were allocated to have more than 3% growth rate of agriculture. Thus new technique, new agricultural policy any other support to agriculture can be undertaken only by the Government. Therefore government plays an important role in economic development through investment and development in agriculture sector. 6) Monetary and Fiscal Policy : The government also helps in economic development by adopting various monetary and fiscal policies. By implementing monetary and fiscal policies, the state is able to solve social, institutional and economic problems in underdeveloped countries. Through monetary policy cost credit reduced and its availability will be at ease. Through Fiscal policy government tries to correct inequalities and income and wealth. The government follows appropriate taxing, spending and borrowing policy to expand internal market, reduce no-essential imports, fight the inflation and enable higher level of savings and investment. 7) Foreign Trade : Developing countries exports primary products, hence they face deficit in the Balance payment. This is due to terms of trade becomes to agriculture sector and in the field and industrial section they are very much weak. Thus, the government can solve the problems related to balance of payment and balance of trade through appropriate export promotion and import substitution policy. Thus it may have an economic development with the help of suitable foreign trade policy. 8) Health and Welfare : Now a days due to globalization rural masses and poor families in urban are facing problems like safe drinking water, housing sites, slums, education, energy, nutrition, roads and transport system. It is the responsibility of the government to solve these socio-economic problems in the country.There, the role of government is to carryout certain welfare and anti-poverty programmes to achieve economic development. 123456789012345678901234567890121234567 123456789012345678901234567890121234567 42 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
3.3 Conclusion / Summary : Capital formation is an important determination of economic development. This capital formation can be floated well in a country, if the political, social, cultural, technological and entrepreneurial factors. Economists have viewed that the development should be launched with industrialization in a country. Monetary policy is useful to fight many financial problem and will be help to have a requisite economic development of a country. Under Fiscal policy the taxation, public expenditure, public debt should be executed suitably to achieve economic development. Thus, the role of Fiscal policy is an inevitable potent instrument in Economic Development. Here government institutes many policy to shoot up growth rate of respected economy. 3.4 Glossary : 1) Capital formation : It means availability of men and material in the country. 2) Monetary Policy : It is the policy which deals with credit policy and interest rates. 3) Fiscal policy : Policy related to spending, taxing and borrowing. 3.5 Question for self learning : A) Choose correct alternatives and rewrite the sentences. 1) Capital means ……………… means of production a) money b) produce c) none of these d) dollor 2) Monetary policy related to …………….. a) supply of money b) production c) Taxation d) None of these 3) Fiscal policy is nothing but ……………… policy of the Govt. a) Taxing and spending b) production c) Balance of payment d) on of all 4) Inflation means ……………… a) fall in price b) rise in price c) unemployment d) everything 123456789012345678901234567890121234567 123456789012345678901234567890121234567 43 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567 123456789012345678901234567890121234567
Page 1 and 2: B. A. Part-III : Economics Paper 4
Page 3 and 4: 7) “ Economic development is a pr
Page 5 and 6: underdeveloped countries in compari
Page 7 and 8: developing states through the progr
Page 9 and 10: 7) Goals : objectives. 8) Disguised
Page 11 and 12: UNIT - 2 Theories of Economic Growt
Page 13 and 14: structure of the traditional societ
Page 15 and 16: help of example, “If we take marg
Page 17 and 18: promote and enhance social welfare.
Page 19 and 20: B The Closed Economy : Assumptions
Page 21 and 22: B The Process of Economic Expansion
Page 23 and 24: consider the possibility of the cap
Page 25 and 26: gap between income and expenditure
Page 27 and 28: disequalising force is trade, which
Page 29 and 30: 8. Rostow developed his theory in
Page 31 and 32: UNIT - 3 Domestic Measures for Econ
Page 33 and 34: all kinds. Hence, capital formation
Page 35 and 36: policy. But these trio are and may
Page 37 and 38: 1) Provision of food to evergrowing
Page 39 and 40: the country.The central bank contro
Page 41: 7) Public Spending : Fiscal policy
Page 45 and 46: UNIT - 4 International Measures for
Page 47 and 48: Y P S C Import E D P O X1 X2 B X Ex
Page 49 and 50: for the developing countries has al
Page 51 and 52: they are entitled to get dividend a
Page 53 and 54: 4) Infrastructure : Since last thre
Page 55 and 56: III) Advantages of Multi-national C
Page 57 and 58: oundaries of nation states. 2) Mean
Page 59 and 60: 4.3 Summary : 1) Role of Foreign Tr

Economics(Paper-4) - Shivaji University

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