Students can use CBSE Previous Year Question Papers Class 12 Economics with Solutions and CBSE Class 12 Economics Question Paper 2019 (Series: BVM/1) to familiarize themselves with the exam format and marking scheme.
CBSE Class 12 Economics Question Paper 2019 (Series: BVM/1) with Solutions
Time Allowed: 3 hours
Maximum Marks : 80
General Instructions:
- All questions in both the sections are compulsory.
- Marks for questions are indicated against each question.
- Question Nos. 1-10 and 18-27 are very short/objective type questions carrying 1 mark each. They are required to be answered either in one word or one sentence each.
- Question Nos. 11-12 and 28-29 are short-questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
- Question Nos. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
- Question Nos. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
- Answer should be brief and to the point and the above word limits should be adhered to as far as possible.
* Modified as per Latest CBSE Curriculum.
Section A: Introductory Macroeconomics
Question 1.
Give the meaning of ex-ante savings. [1]
Answer:
Ex-ante savings mean planned savings.
Question 2.
Define the term ‘tax’. [1]
Answer:
A tax is a legally compulsory payment imposed by the government on the households and producers.
Question 3.
Suppose in a hypothetical economy, the income rises from ₹5,000 crores to ₹6,000 crores. As a result, the consumption expenditure rises from ₹4,000 crores to ₹4,600 crores.
Marginal propensity to consume in such a case would be ____.
(Choose the correct alternative) [1]
(a) 0.8
(b) 0.4
(c) 0.2
(d) 0.6
Answer:
(d) 0.6
Question 7.
Can the value of MPC and MPS be negative? Why? [1]
Answer:
Both consumption and savings have positive or direct relationships with income and both are functions of income. Therefore, MPS and MPC can never be negative.
Question 8.
The difference between domestic income and national income is due to: (Choose the correct alternative) [1]
(a) Depreciation
(b) Net factor income from abroad
(c) Net indirect taxes
(d) Change in stock
Or, Which of the following will not be included in national income?
(a) Rent
(b) Mixed income of self employed
(c) Scholarships
(d) Interest
Answer:
(b) Net factor income from abroad
Or, (c) Scholarships
Question 9.
Define Statutory Liquidity Ratio (SLR). [1]
Answer:
Statutory Liquidity Ratio (SLR) is that part of the deposits which commercial banks are legally bound to keep in the form of cash and designated assets and securities as per the directions of the central bank.
Question 10.
What is barter? [1]
Answer:
Barter is a system of exchange of goods and services for some other goods and services.
Question 11.
Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting. [3]
Or, “Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country.” Defend or refute the given statement with valid reason.
Answer:
While estimating national product, the value of a commodity should be counted only once. If the value of a commodity is counted more than once, this is known as the problem of double counting, such as counting the value of sugarcane and sugar both.
Here, sugarcane used as raw material in the production of sugar has been counted twice. In the given example, we should only count the value of sugar which is a final product. Sugarcane is a raw material or an intermediate good. Therefore, while calculating the national product, value of intermediate goods should not be counted. In this way, by finding the value of final goods, the problem of double counting is solved.
The problem of double counting can be solved with the help of value added method also. This can be explained with the help of the example of production of sugar taken above. Let us say that the value of sugarcane is ₹1,000 and that of sugar ₹1,500.
Here, in the first production stage, where sugarcane is produced, value added is ₹1,000 (sale price – cost of production) and during the second and final production stage where sugar is manufactured, value added is ₹500 (₹1,500 – ₹1,000). Therefore total value added is ₹1,500 (₹1,000 + ₹500) which is equal to the value of final product, i.e., sugar.
This can be understood well by looking at the value-added statement given below:
Thus, the problem of double counting can be avoided either by finding value added or by finding the value of final goods.
Or, “GDP often does not give us a clear indication of economic welfare of a country” due to the following reasons:
- It does not reflect equal distribution of income among people because increased GDP may be concentrated in a few hands.
- It does not take into account non-monetary exchanges like domestic services provided by housewives are not counted while estimating national income.
- GDP does not take into account the benefits or harms caused due to economic activities for which people are not rewarded or penalised. These are known as externalities. Externalities can be both positive or negative. Environmental pollution is an example of negative externality.
Question 12.
If in an economy: [3]
Change in initial Investments (∆I) = ₹500 crores
Marginal Propensity to Save (MPS) = 0.2
Find the values of the following:
(a) Investment multiplier (K)
(b) Change in final income (∆Y)
Answer:
(a) ∆I = ₹500 crores; MPS = 0.2 ∴ K = \(\frac{1}{\text { MPS }}\) = \(\frac{1}{0.2}\) = 5
(b) ∆Y = ?
K = \(\frac{\Delta Y}{\Delta \mathrm{I}}\) ⇒ 5 = \(\frac{\Delta Y}{₹ 500}\)
∴ ∆Y = ₹500 × 5 = ₹2,500 crores
Question 13.
How are capital receipts different from revenue receipts? Discuss briefly. [4]
Answer:
Difference between Revenue receipts and Capital receipts
Basis | Revenue receipts | Capital receipts |
Meaning | Revenue receipts refer to those receipts which neither create any liability nor cause any reduction in the assets of the government. | Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the government. |
Nature | These are regular and recurring in nature. | These are irregular in nature. |
Future Obligation |
There is no future obligation to return the amount. | In case of certain capital receipts (like borrowings), there is a future obligation to return the amount alongwith its interest. |
Examples | Taxes received by the government, non-tax revenue like interest, fees etc. | Loans taken by the government, recovery loans given to the state governments etc. |
Question 14.
State and discuss the components of Aggregate Demand in a two-sector economy. [4]
Or
In the given figure, what does the gap ‘KT represent? State any two fiscal measures to correct the situation.
Answer:
In a two sector economy there are two components of Aggregate demand namely —
- consumption demand and
- investment demand.
In a two-sector economy, aggregate demand or aggregate expenditure refers to how much expenditure the households and the entrepreneurs are willing to make on consumption and investment.
Hence, Aggregate Demand (AD) = Consumption Demand + Investment Demand.
Consumption demand depends upon the propensity to consume of the community and the level of national income. Given the propensity to consume, consumption demand is a function of income.
There is usually a direct relation between consumption and income. According to Keynesian physiological law of consumption, when income increases, consumption also increases but by less than increase in income.
The other component of aggregate demand in a two-sector economy is investment demand. Investment demand depends upon two factors namely marginal efficiency of capital and rate of interest. Out of the these two factors, interest rate is relatively stable in the short run, thus the changes in the level of investment demand mainly depends upon the changes in the marginal efficiency of capital. Marginal-efficiency of capital means the expected rate of profit that the entrepreneurs hope to get from investment in capital assets.
Or, In the given figure, the gap KT represents inflationary gap. Inflationary gap is the amount by which the actual aggregate demand exceeds aggregate supply at level of full employment. It is a measure of the excess of aggregate demand over level of output at full employment. Inflationary gap is a measure of excess demand. Fiscal measures are budgetary tools that can be used by the government in order to deal with the problem of inflationary gap or excess demand.
Following two fiscal measures can help in rectifying the situation of inflationary gap:
(i) Taxes. During the time of inflationary gap or excess demand the main aim of government is to bring down the level of aggregate demand. Thus the government increase taxes especially on high income earners in order to cut down their purchasing power. Thus decrease in taxes is a powerful fiscal measure adopted by the government to rectify the situation of excess demand or inflationary gap.
(ii) Expenditure. Changes in expenditure of the government may also influence the level of aggregate demand in the economy. To correct the situation of inflationary gap government reduces its expenditure on various heads like health, education, law and order, subsidies etc.
Question 15.
If Legal Reserve Ratio is 0.2 and new deposits are ₹5,000, explain the process of money creation by commercial banks. [4]
Answer:
Process of Money Creation
The money creation process will be as follows:
As given in the question, the initial deposit is ₹5,000 and LRR is 0.2 or 20%. In this case, banks keep ₹1,000 as reserve and lend the remaining ₹4,000. The borrowed money is used to make payments and the people who have received these payments again deposit the money in banks. In this way, banks receive new deposit of ₹4,000 of which 20%, i.e., ₹800 is kept as reserve and the remaining amount (i.e., ₹3,200) is given as loans.
In this manner, in every round, 80% of the loans advanced are converted into new deposits. Given the amount of initial deposit and LRR, the total amount of money creation is
= Initial deposit × \(\frac{1}{L R R}\) ⇒ ₹5,000 × 02 = ₹25,000
Question 16.
(a) Define “Trade surplus”. How is it different from “Current Account Surplus”?
(b) “Indian Rupee (₹) plunged to all time low of ₹74.48 against the US Dollar ($)”.
– The Economic Times
In the light of the above report, discuss the impact of the situation on Indian Imports. [6]
Answer:
(a) Trade Surplus. It refers to a situation when the volume of export of goods and services exceeds the volume of import of goods and services.
Trade surplus is different from Current Account Surplus in the sense that current account is the account of balance of payment that maintains the records of imports and exports of goods and services along with the record of unilateral transfers.
(b) The given statement is reflecting depreciation of Indian currency. Depreciation of currency means fall in the value of domestic currency in terms of foreign currency. It results in higher exchange rate. Higher exchange rate makes foreign goods more expensive. Thus the depreciation of currency reflected in the given statement will result in reduction of India’s imports as it will make imports much costlier and expensive.
Question 17.
Give the following data, find the missing value of ‘Government Final Consumption Expenditure’ and ‘Mixed Income of Self Employed’. [6]
Or, Given the following data, find the missing values of ‘Private Final Consumption Expenditure’ and ‘Operating Surplus’.
Answer:
National Income, NNPFC = ₹71,000
NDPFC = NNPFC – NFIA
= ₹71,000 – ₹1,000 = ₹70,000 crore
NDPFC = Mixed income of self employed + Wages and Salaries + Operating Surplus
₹70,000 = Mixed income of self employed + ₹15,000 + ₹30,000
∴ Mixed income of Self Employed = ₹70,000 – 15,000 – ₹30,000
= ₹70,000 — ₹45,000 = ₹25,000 crore
GDPMP = NNPFC — NFIA + Net Indirect Taxes + Consumption of fixed capital
GDPMP = ₹71,000 – ₹1,000 + ₹2,000 + ₹3,000
= ₹70,000 + ₹5,000 = ₹75,000 crore
GDP = Gross capital formation + Gozernment final consumption expenditure + Nef exports + Private final consumption expenditure
₹75,000 = ₹10,000 + Government final consumption expenditure + ₹5,000 + ₹40,000
∴ Government final consumption expenditure ₹75,000 – ₹10,000 – ₹5,000 – ₹40,000
= ₹75,000 – ₹55,000 = ₹20,000 crore
Or, National Income, NNPFC = ₹50,000
= ₹50,000 – ₹500 = ₹49,500 crore
NDPFC = Wages and Salaries + Mixed income of self employed + Operating surplus
₹49,500 = ₹20,000 + ₹13,000 + Operating Surplus
Operating surplus = ₹49,500 – ₹20,000 – ₹13,000
= ₹49,500 – ₹33,000 = ₹16,500 crore
GDPMP = NNPFC + Consumption of fixed capital + Net indirect taxes
= Net factor income from abroad
GDPMP = ₹50,000 + ₹700 + ₹1,000 – ₹500
= ₹51,200 crore
GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports
∴ ₹51,200 = Private final consumption expenditure + ₹12,500 + ₹17,000 + ₹2,000
∴ Private final consumption expenditure = ₹51,200 – ₹12,500 – ₹17,000 – ₹2,000
= ₹51,200 – ₹31,500 = ₹19,700 crore
Section B: Indian Economic Development
Question 18.
Which of the following is not a goal of five year plans? [1]
(a) Growth
(b) Self reliance
(c) Modernisation
(d) Deflation
Answer:
(d) Deflation
Question 19.
‘It is important to ensure that the benefits of economic prosperity reach the poor sections as well, instead of being enjoyed only by the rich’.
Which goal of five year plans is mentioned in the given statement? (Choose the correct alternative) [1]
(a) Self reliance
(b) Equity
(c) Modernisation
(d) Growth
Answer:
(b) Equity
Question 20.
Name any two industries which are exclusively reserved for the public sector. [1]
Answer:
- Atomic energy generation
- Defence equipments
Question 21.
State any two objectives of trade reforms. [1]
Answer:
- To dismantle the quantitative restrictions on imports and exports.
- To remove licensing of procedures for imports (except in case of hazardous and environmentally sensitive industries).
Question 22.
Which of the following organisations regulates the health sector in India? [1]
(a) NCERT
(b) IJGC
(c) ICMR
(d) AIE
Or, Which committee took the decision to bring all Indian children in the age group of 6-14 yearš under the purview of school education?
Answer:
(c) ICMR
Or, The Tapas Majumdar Committee
Question 23.
Define sustainable development. [1]
Answer:
Sustainable development refers to the development which meets the needs of the present without compromising the ability of future generations to meet their own needs.
Question 24.
India faces ‘educated unemployment’. Even though the number of educated individuals ready for jobs has increased, they are unemployed. Which of the following is MOST LIKELY the reason for this? [1]
(a) The supply of labour is much higher than demand.
(b) Investments in health have not taken place proportionally.
(c) Although more students are enrolled in schools, there is a high dropout rate.
(d) Reverse migration has not been accompanied by alternative employment opportunities.
Answer:
(a) The supply of labour is much higher than demand.
Question 25.
DIRECTION: Read the following statements—Assertion (A) and Reason (R). Choose one of the correct alternatives given below: [1]
Assertion (A) : According to the Government of India, the disinvestment of Public Sector Enterprises has brought accountability and professionalism to them.
Reason (R) : The Government of India used disinvestment mainly to improve financial discipline and facilitate modernisation.
(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.
Answer:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Question 26.
Which one of the following is an apex body to take care of the rural financing system of the country? [1]
(a) RBI
(b) NABARD
(c) ICICI
(d) SBI
Answer:
(b) NABARD
Question 27.
In the Swadeshi Movement against the British, started in 1905, Indians started ditching British goods for Indian products. Which of the following would have been the likely impact of the movement? [1]
P : rise in import of raw materials
Q : fall in imports from Britain
R : rise in production of goods in India
S : rise in export tariffs
Choose the correct option:
(a) Only P and R
(b) Only P and S
(c) Only Q and R
(d) Only R and S
Answer:
(c) only Q and R
Question 28.
Discuss the various indicators of educational achievements. [3]
Or, State why expenditure on migration is considered as a source of human capital formation.
Answer:
Educational achievements in a country are indicated by the following:
- Adult literacy rate. This rate indicates the percentage of the literate adult population aged 15 years and above. The word literacy, in this case, refers to the ability to read and write.
- Primary education completion rate. It is the percentage of students completing the last year of primary school. A primary education completion rate of less than hundred percent is indicative of a problem in the state’s obligation to fulfill the right to free and compulsory primary education.
- Youth literacy rate. This rate indicates the percentage of literate people between the age of 15-24 who can read and write.
Or
Many people move from the rural areas to the urban areas in search of work, income and better facilities. Migration occurs when people change jobs in order to increase their income. Thus unemployment and increase in income are the two main reasons why people migrate. When migration happens there is an expenditure involved like cost of transport.
Moreover cost of living for such people increases and they also incur a sort of psychic cost of living in a different socio-cultural society. Since the income generated from migration is much more as compared to the cost of migration, hence expenditure on migration is considered as a source of human capital formation.
Question 29.
Why are we relying more on technology and less on employment? [3]
Answer:
- Our growth process is being increasingly hijacked by MNCs.
- MNCs achieve high growth through efficient use of technology rather than through greater use of manpower.
- Resultant growth is moving faster than the opportunities of employment.
Question 30.
‘It is the process of hiring regular service from external sources, mostly from other countries, which was previously provided internally or from within the country.’
Identify the concept discussed in the given para. State three advantages of the concept so identified. [4]
Answer:
The concept discussed in the given para is ‘outsourcing’. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed and produced in-house by the company’s own employees and staff. In the context of globalisation, a company opting for outsourcing may hire regular services from external sources, mostly from other countries, which was previously provided internally or from within the company.
Following are the major advantages of outsourcing:
- Outsourcing non-core activities like administration and back office operations helps an organisation to focus on the core functions.
- Cost savings is considered one of the biggest advantage of outsourcing. The lower cost of operation and labour, and reduction in overhead costs makes it attractive to outsource.
- Often certain functions of an organisation become operationally uncontrollable. In such situations, outsourcing proves to be a better option.
Question 31.
‘From 1st July 2017, India adopted a dual GST (Goods and Service) tax model.’
In the light of the given statement discuss the dual GST model adopted by the country. [4]
Answer:
The Goods and Services Tax (GST) is-a-v-alue added tax levied on most goods and services sold for domestic consumption. It is a comprehensive tax levied on manufacture, sale and consumption of goods and services at national level. It is a tax on goods and services with value addition at each stage. It aims at overcoming the drawbacks of the present tax system in the country.
India adopted a dual GST model, meaning that taxation is administered by both the Union and State Governments. Transactions made within a single state are levied with Central GST (CGST) by the central government and State GST (SGST) by the State Governments.
For Inter-State Transactions and imported goods or services, an Integrated GST (IGST) is levied by the Central Government. GST is a consumption based tax, hence taxes are paid to the state where the goods or services are consumed and not the state in which they were produced.
Question 32.
Write short notes on the following:
(i) Rural Employment Generation Programme (REGP) [2]
(ii) Swama Jayanti Gram Swarozgar Yojana (SGSY) [2]
Or, Write short notes on the following:
(i) Informalisation of workforce
(ii) Jobless growth
Answer:
(i) Rural Employment Generation Programme (REGP). This programme aimed at creating self employment opportunities in rural areas and small towns. It was implemented by Khadi and Village Industries Commission. Under this program, one can get financial assistance in the form of bank loans to set up an enterprise that generates employment.
(ii) Swarna Jayanti Gram Swarozgar Yojana (SGSY). It was launched with effect from 1st April 1999, this self employment programme aimed at encouraging micro enterprises. Under this program, people who wish to benefit from this scheme, are encouraged to form Self Help Groups (SHGs).
Initially, they are encouraged to save some money and lend among themselves as small loans. Later, the government provides partial financial assistance to these SHGs, which then decide, whom the loan is to be given for self employment activities. This has now been restructured as National Rural Livelihoods Mission (NRLM).
Or, (i) Informalisation of workforce. Informalisation of workforce refers to a process in whereby the proportion of informal workers in the total force increases. It implies movement of workers from self employment and regular salaried employment to informal employment.
Following factors are responsible for the increasing informalisation of workforce:
- Gap in demand and supply of labour. Due to inadequate employment opportunities, the supply of labour far exceeds its demand. Thus, the producers, taking advantage of the situation resort to informalisation.
- Cost reduction. In order to maximize their profits, the producers try to minimise their cost by employing more and more of casual labour.
- Relaxation in labour laws. Due to relaxation in labour laws, the producers prefer to employ casual labour than regular workers.
(ii) Jobless growth. It also known as jobless recovery is an economic phenomenon in : which a macroeconomy experiences growth while maintaining or decreasing its level of employment. In simple words, jobless growth means that while the economy is growing at a decent rate but it is generating very few job opportunities. Due to this many qualified personnel remain unemployed.
India despite being one of the fastest growing economy, still faces job crunch. Though the economy is on the rise but it is not able to create required number of job opportunities. Thus jobless growth is a situation when there is an overall acceleration on the growth rate of Gross Domestic Product (GDP) in the economy in the absence of corresponding expansion in employment opportunities.
Question 33.
Give a comparative overview of sectoral share of employment and Gross Domestic Product (GDP) in India, China and Pakistan. [6]
Answer:
China and Pakistan have more proportion of urban population as compared to India. Due to topographic and climatic conditions the total area suitable for cultivation in China is small. Till 1980s more than 80% of the Chinese population was engaged in agriculture as a source of livelihood.
Since then the Chinese government has taken various initiatives to move its population from farming to other activities like handicrafts, commerce and transport. In 2014-15 only 28% of the Chinese workforce was engaged in agriculture and the share of agficulture to Chinese GDP was recorded at around 9%.
The contribution of agriculture in India’s GDP during this period was around 17%. In Pakistan, agriculture contributed 25% to its GDP during 2014-15. It should be noted that the proportion of population engaged in agriculture in India is far more than China and Pakistan.
During 2014-15,50% of India’s population was engaged in agriculture while in Pakistan this percentage was recorded at 43%. The industry and service sectors in all the three countries have less proportion of workforce but they contribute more in terms of output.
In China, the manufacturing and service sector contribute the highest to GDP, whereas in India and Pakistan it is the service sector which contributes the highest. The proportion of workforce engaged in manufacturing in both India and Pakistan is lower than in China.
China has the highest population engaged in the service sector. Thus in India and Pakistan, the service sector has emerged as a major player of development. In the last three decades, the growth of agricultural sector has declined in all the three countries. China has witnessed prominent growth in its service sector while both India and Pakistan witnessed a stagnant growth in their service sector.
Hence manufacturing and service sector both have contributed to a great extent in China’s overall growth. In case of India, it is the service sector which has contributed maximum to the country’s growth. Pakistan has witnessed deceleration in all three sectors.
The following table gives a glimpse of sectoral share of employment and GDP (%) in 2014-15 in all the three countries.
Source: World development indicators 2016; Key Indicators of Asia and Pacific, 2016-34.
Question 34.
Discuss any two major challenges to India’s environment. [6]
Or, Discuss any four suitable strategies for sustainable development.
Answer:
Following are the major challenges to India’s environment:
(i) Land degradation. Land degradation is a process in which the value of biophysical environment is affected by a combination of human induced processes acting upon the land. In other words, land degradation refers to temporary or permanent decline in the productive capacity of the land. Land in India suffers from different types and degrees of degradation. They are a result of unstable use and inappropriate management practices.
Following are certain factors responsible for land degradation in India:
- Deforestation resulting in loss of vegetation.
- Unsustainable fuel wood and fodder extraction
- Shifting cultivation and Improper crop rotation
- Over grazing
- Forest Fires
- Improper management of irrigation systems
- Use of fertilizers and pesticides
- Not adopting adequate soil conservation measures
- Poverty of Indian farmers
(ii) Biodiversity loss. Biodiversity loss is another challenge to India’s environment. It refers to the extinction of species (plant or animal). Biodiversity is the resource upon which families, communities, nations and future generations depend. It acts as a link between all organisms on earth, binding each into an inter-dependent ecosystem, in which all species have their respective role. Biodiversity loss disrupts the functioning of ecosystems, making them more vulnerable to unfavourable changes.
Biodiversity loss has major economic and social costs for any country as many animals and plants lose their natural habitat. Biodiversity loss is mainly attributed to anthropogenic factors. It implies the way humans are interacting with the environment is harming the natural environment. Many human activities alter the natural balance and once an ecosystem is out of equilibrium, biodiversity loss occurs. There are number of factors that have resulted in biodiversity loss in India.
These are stated below:
- Escalation of human population
- Deforestation
- Overuse of natural resources
- Climate change
- Natural calamities
Or
(i) Restrict use of renewable resources. In order to achieve sustainable development it is
essential to put a restriction on the use of renewable resources. Instead more emphasis should be given on the use of non-renewable sources of energy like solar, wind and water energy. It should be ensured that the rate of extraction of renewable resources should not exceed rate of regeneration.
(ii) Use of cleaner fuels. Now a days use of Compressed Natural Gas (CNG) is being promoted especially in the urban areas of the country. Use of CNG in public transport in the capital city of the country is a great step towards sustainable development. Moreover in rural areas, use of LPG and gobar gas is being promoted to save the environment. Use of wood, dung cake or other biomass as fuel is discouraged now a days too protect the environment.
(iii) Mini hydel plants. In mountainous regions streams are found every where. Number of such streams are perennial. Such streams are used by mini hydel plants to move small turbines which generate electricity. Thus these small turbines can provide electricity into the local areas. Such power plants are eco-friendly. Use of such plants to generate electricity is a good step towards sustainable development.
(iv) Biocomposting. Biocomposting is the process of decomposing and recycling plant matter as a fertilizer or manure. It considered as a key ingredient in organic farming. Use of pesticides and chemical fertilizers to increase the agricultural production adversely affects the land and contaminates the water bodies as well. Thus biocomposting is used to generate organic fertilizers and manures. It is a positive strategy towards sustainable development.