Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 5 Forms of Market students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 5 Forms of Market

→ Market in Economics refers to an arrangement through which buyers and sellers come in close contact with each other directly or indirectly for exchange of goods and services at a particular price. This may be by way of telephone, internet, etc. Thus, the essentials of market are

1. There are many buyers and sellers.
2. Market involves exchange of goods and services.
3. There is a price for a commodity.
4. They have either direct or indirect contact.
5. They may be spread over to a place, region, country or world without knowing each other e.g. We buy things through Amazon.

Classification of Market:
Market can be classified on the basis of place, time and competition.

1. On the basis of place: These can be further divided into :

→ Local Market: When goods are produced and sold in local areas mainly then market for such goods is called local market. E.g. perishable goods or bulky goods like bricks.

→ Regional Market: When goods have market within a particular region, market for such goods is called regional market. E.g. Regional movies mainly have regional market.

→ National Market: Market confined to a domestic market in a country is called national market. E.g. cars, scooters, T.V., etc.

→ International Market: Goods which can be sold in any part of the world have international market. E.g. tea, coffee, petroleum, etc.

2. On the basis of Time: These can be further divided into :

→ Very Short Period Market: A market which lasts for a few days or maximum a week, is called very short period market. E.g. for fruits market, vegetables market, etc.

→ Short Period Market: When the supply of the product can be increased to some extent say upto one year with the help of available raw material, then market to such goods is called short period market.

→ Long Period Market: It is a market from one year to five years when the supply can be increased on demand.

→ Very Long Period Market: It is a market for more than five years when supply can be fully adjusted to demand.

On the basis of Competition: These can be of following types:

→ Perfect Competition

→ Imperfect Competition: This is further divided into :

• Monopoly,
• Oligopoly,
• Monopolistic competition.

Perfect Competition: In Perfect competition, there are large number of buyers and sellers engaged in buying and selling a homogeneous product at a single uniform price in the market. Its main features are –

• Large number of buyers and sellers
• Homogeneous products
• Free entry and exit of firms
• Uniform price or price taker
• Perfect knowledge
• Perfect mobility of factors
• No transport cost
• No government intervention

Price determination under Perfect Competition: In this market, price is determined at the point of intersection of demand and supply curves in the market. This is called equilibrium price where quantity demanded is equal to quantity supplied as follows:

In this diagram, demand and supply curves intersect at point E, where sellers are ready to sell OQ quantity at price OP and buyers O are ready to buy OQ quantity at price OP. If price rises or falls, changes in demand and supply bring the price back to equilibrium level.

Imperfect Competition: It is a type of market which has some features of perfect competition. It may be of following types: Monopoly, Oligopoly, Monopolistic competition.

(I) Monopoly: It is a market in which there is only one seller who has complete control over the market supply and there are no close substitutes. Its main features are:

• Single seller
• Large number of buyers
• No close substitutes
• Entry barriers
• Price maker
• Price discrimination
• Control oversupply
• Aims at profit maximisation
• No difference between firm and industry

Types of Monopoly:
It can be of following types:-

1. Natural monopoly
2. Legal monopoly
3. Joint monopoly
4. Simple monopoly
5. Discriminating monopoly
6. Private monopoly
7. Public monopoly

(II) Oligopoly: On the basis of competition, oligopoly market is one in which there are a few sellers selling homogeneous or differentiated products which are close substitutes of each other. E.g.
cement companies, baby foods, etc. Its main features are –

• Large number of buyers
• A few sellers
• Interdependence
• Selling cost
• Entry barriers
• Uncertainty
• Lack of uniformity

(III) Monopolistic Competition: It is a market in which there are large number of buyers and fairly large number of sellers producing similar or differentiated products which are close substitutes of each other. It has some elements of monopoly and some elements of competition. Therefore, this market is known as monopolistic competition. e.g. market for vegetable oil, washing powders, soaps etc. Its main features are –

• Large number of buyers
• Fairly large number of sellers
• Product differentiation
• Free entry and exit of firms
• Selling cost
• Downward sloping demand curve
• Concept of group

Thus, market is said to exist when:

1. There are many buyers and sellers.
2. They may be spread either to a place, region, country or world.
3. Goods are bought and sold at a price.
4. People have the knowledge about market price.
5. Freedom of entry and exit of firms.

By going through these Maharashtra State Board Class 12 Psychology Notes Chapter 2 Intelligence students can recall all the concepts quickly.

Maharashtra State Board Class 12 Psychology Notes Chapter 2 Intelligence

Meaning And Perspectives On Intelligence:

• Intelligence is the highest attribute of human beings. Different psychologists have defined intelligence differently.
• Lewis Terman explains intelligence as, “an ability to think on an abstract level.”
• David Wechsler defines intelligence as, “the aggregate or global capacity of an individual to act purposefully, to think rationally and to deal effectively with his environment.”

The two main perspectives on intelligence are –

Intelligence as a single, general ability – The classical notion of intelligence explains it as an unitary ability and only the functions of intelligence may take different forms. Psychologists like Alfred Binet, David Wechsler, William Stern and Lewis Terman believed that intelligence is a single index of cognitive abilities.

Intelligence as a set of multiple abilities – The modern view of intelligence as explained by psychologists like Charles Spearman, E.L. Thorndike, Howard Gardner, etc., states that multiple abilities are involved in intelligence. They believe that distinct types of intelligences exist.

• E. L. Thorndike – explained that intelligence consists of three independent abilities viz. Abstract intelligence, Social intelligence and Concrete intelligence.
• Louis Thurstone – explained that intelligence consists of seven Primary Mental Abilities viz. verbal comprehension, word fluency, number facility, spatial visualization, associative memory, reasoning and perceptual speed.
• Charles Spearman – proposed the Two Factor Theory of Intelligence i.e. General factor (g) minimum competence and Specific factor (s) specific abilities which are required to solve problems.
• Raymond Cattell and John Horn – The two types of intelligence are 1) fluid intelligence – dependent on neurological development, 2) crystallized intelligence – function of knowledge, experience.
• Howard Gardner – Theory of Multiple Intelligence (1983) – There are nine independent types of intelligence viz. linguistic,logical-mathematical, spatial, musical, bodily-kinesthetic, intrapersonal, naturalistic, existential intelligence.

Measurement Of Intelligence:
Sir Francis Galton thought that he could determine intelligence by measuring the size of the human skull. He administered a battery of tests to measure variables such as head size, reaction time, visual acuity, etc. However, these tests did not prove useful to measure intelligence.

Raymond Cattell used the term ‘mental test’ for the first time. Like his mentor, Sir Galton, Cattell also believed that intelligence is best measured by sensory tasks. However, be emphasized that test administration must be standardized.

In 1905, Alfred Binet in collaboration with Theodore Simon published the First Scale of Intelligence. This scale was revised in 1908 and 1911. In 1916, Lewis Terman revised the scale, i.e., adapted few items, established new age norms etc. This came to be called ‘Stanford Binet Test’.

In 1917, Robert Yerkes and his colleagues developed the Army Alpha (verbal test) and Army Beta (performance test) intelligence tests. These two tests were used to recruit soldiers during the First World War. In 1939, during Second World War II also, to recruit army personnel, the Army General Classification Test was used.

In 1939, David Wechsler published the Wechsler-Bellevue Intelligence Test. In 1955, the test was revised and then called Wechsler Adult Intelligence Scale (WAIS). It has a verbal scale and performance scale.

Wechsler also developed a test to measure the intelligence of children, i.e., Wechsler Intelligence Scale for Children (WISC). In 2008, Pearson released the WAIS-IV.

Mental Age – Alfred Binet introduced the concept of Mental Age. It is defined as the age at which the person successfully performs on all items of the test prepared for that age level. Mental Age need not correspond to Chronological Age. If Mental Age (MA) is the same as Chronological Age (CA), the person has average intelligence.

Intelligence Quotient – In 1912, William Stern introduced the concept of Intelligence Quotient (IQ). Terman refined the formula for calculating IQ which is as stated below –
IQ = \(\frac{\mathrm{MA}}{\mathrm{CA}}\) × 100

Types Of Intelligence Tests

Individual tests of intelligence – Individual tests of intelligence are tests which can be administered to a single person at a time, for e.g., Stanford Binet Scales, WAIS, Koh’s Block Design Test, etc. They require a trained, skilled psychologist to administer, score and interpret the test. Individual tests are more capable of measuring productive thinking.

Group tests of intelligence – Group tests of intelligence are tests that can be administered to more than one person at a time, i.e., for mass testing, for e.g., Army Alpha and Army Beta Test, Otis self-administration tests, etc. Group tests require less time consuming and more economical. However, they are less capable of measuring the creative aspect of intelligence.

Verbal tests of intelligence – Verbal tests of intelligence make use of words and numbers to measure intelligence. Subjects respond verbally to the test items, for e.g., WAIS, Army Alpha Test, etc. These tests are culture-bound but are useful to measure higher mental abilities.

Non-verbal tests of intelligence – Non-verbal tests of intelligence do not use language to measure intelligence.

They make use of pictures, designs, objects, etc. Such tests maybe

• Performance tests, e.g., Koh’s Block Design Test or
• Paper-pencil test e.g., Raven’s Standard Progressive Matrices.

Non-verbal tests are culture-free and are also suitable for use with illiterate persons, children, etc. However, they are less suitable to measure higher mental abilities.

Application Of Intelligence Testing:

• Effective Schooling – On the basis of intelligence test scores, teachers can classify students into intellectual categories and devise special instructional programmes suited to their mental development.
• Aids Mental Health Personnel – Intelligence tests are helpful to Mental Health personnel such as psychologists etc., for diagnosis purposes and therapy.
• Effective Parenting – Parents can provide appropriate educational facilities to their children based on their IQ scores.
• Career Counselling – Scores obtained on intelligence tests help the student to select the right educational options/ courses.
• Vocational Counselling – Individuals can choose a suitable career and achieve job satisfaction when they make a realistic choice of vocation based on IQ scores.

New Trends In Intelligence:
Social Intelligence:
E.L. Thorndike proposed the term social intelligence. Howard Gardner included interpersonal intelligence in the Multiple Intelligences Theory. According to Karl Albrecht, “Social intelligence is the ability to get along well with others and to get them to cooperate with oneself’.

A continued pattern of nourishing behaviour indicates a high level of social intelligence. Such persons are skilled at interacting with and understanding people around them. They respect and encourage others. They effectively comprehend social dynamics.

Emotional Intelligence (El):
The term emotional intelligence was used for the first time by John Mayer and Peter Salovey. The concept of emotional intelligence was popularized by Daniel Goleman. It is defined as ‘the ability to perceive and monitor one’s own and others emotions, to discriminate among them and to use this information to guide one’s thinking and actions.

Emotional intelligence refers to a set of cognitive abilities such as perceiving emotions, using emotions to facilitate thought, understanding emotions and managing (regulating) emotions. Persons with high emotional intelligence tend to be emotionally stable, patient, optimistic, enthusiastic and calm.

Artificial Intelligence (AI):
The term artificial intelligence was suggested by John McCarthy. Artificial intelligence is an innovation created by human intelligence. It is a field of study that combines computer science, algorithms, psychology, etc. It refers to enabling software programmes and computer systems to perform tasks that normally require human intelligence, such as visual perception, speech recognition, weather forecasting, language translations, etc.

Artificial intelligence can take decisions only on the basis of stored information and so it cannot be an alternative to human intelligence. Artificial intelligence has immense applications in daily life as well as to solve critical problems such as drones, Robotic Process Automation, medical diagnosis, etc.

Glossary:

→ Artificial Intelligence – A subfield computer science enabling software programs to run machines just like human intelligence

→ Emotional Intelligence – An individual’s ability to perceive. assess, evaluate and regulate one’s own and other’s emotions accurately.

→ Intelligence Quotient – The standard score of an individual’s intelligence based on an intelligence test, It is also known as IQ.

→ Mental age – Is a measure of a child’s performance on an intelligence test and relative to the performance of other children of the same age on the same test.

→ Performance tests – Any test that requires the individual to perform or do something such as completing a task or manipulating abjects rather than respond using language.

→ Social Intelligence – An individual’s ability Lo effectively relate to others.

→ Verbal tests – They make use of words and numbers to measure intelligence and subjects respond verbally to the test items.

→ Individual tests – They are tests which can be administered to a single person at a time.

→ Group tests – They are Lists that can be administered to more than one person at a time.

→ Intelligence – The aggregate or global capacity of an individual to act purposefully, to think rationally and to deal effectively with his environment.

By going through these Maharashtra State Board Class 11 Economics Notes Chapter 2 Money students can recall all the concepts quickly.

Maharashtra State Board Class 11 Economics Notes Chapter 2 Money

→ Concept of Money : It is an important concept. It has brought a revolutionary change in the economic life of human beings.
Modern economy is dependent on money. Barter system is replaced with introduction of money.

→ Difficulties in Barter System :

1. Problem of Double Coincidence of wants
2. Lack of common measure of value
3. Difficulties in storage of goods
4. Indivisibility of certain goods
5. Problem of making Deferred Payments

→ Definition of Money : “Money is anything that is generally acceptable as a mean of exchange and
at the same time acts as a measure and a store of value.” Prof. Crowther.

→ Evolution of Money :

1. Animal Money
2. Commodity Money
3. Metallic Money
4. Metallic Coins
5. Paper Money
6. Credit Money
7. Plastic Money
8. Electronic Money

→ Types of Money :

1. Animal Money : E.g. Cow, Sheep, Goat, etc.
2. Commodity Money : E.g. Feathers, Shells, Grains, Fur, etc.
3. Metallic Money : E.g. Gold, Silver, Copper, Aluminium, etc.
4. Metallic Coins : E.g. Full bodied coins → Face value = Intrinsic value
   E.g. Token coins → Face value > Intrinsic value
5. Paper Money : E.g. ₹. 1, ₹. 5, ₹. 50, ₹. 100 – notes, etc.
6. Bank Money (Credit Money) E.g. Cheque, Demand Draft, etc.
7. Plastic Money : E.g. Debit Cards, Credit Cards
8. Electronic Money (E-Money) : E.g. Mobile, Tablet, Smart Cards, Computer, Digital Wallet.

→ Legal and Non-legal tender money :

• Legal Tender Money is backed by law and it cannot be refused by anybody, while doing any transactions. E.g. all coins and currency notes prevailing in the country.
• Non-Legal Tender Money is not backed by law. It can be refused. It is evolved just to make transactions easy between buyer and seller. It is also called as optional money.

→ Qualities of Money :

1. General Acceptability
2. Divisibility
3. Durability
4. Cognizabity
5. Portability
6. Homogeneity
7. Stability

→ Functions of Money :

(A) Primary Functions:

• Medium of Exchange
• Measure of Value (Unit of Account)

(B) Secondary Functions:

• Standard /Deferred payments
• Store of Value
• Transfer of Value

(C) Contingent Functions:

• Measurement of N.I.
• Basis of Credit.
• Imparts liquidity to wealth
• Estimation of macro economic variables

→ Black Money :
It is a money earned through illegal activity. It is collected to evade tax. It encourages illegal activities like bribery, black marketing, hoarding, etc. It leads to political, economic and social instability in any country.

Word Meaning:

intellectual – Process of thinking and understanding; fundamental – basic, mechanical – use of machines, revolutionary – complete change, circulation – distribution, barter system – exchange of goods for goods, coincidence – by chance, perishable – gets spoilt easily, bulky – large, inconvenient – difficult not possible to do, indivisible – cannot be separated, deferred – in future, civilization – human, social and cultural development, evolutionary – development, protohistoric period – a period between prehistory and history, metallic – use of metal, precious – of great price, uniformity – similarity, affixed – attach, authorities – power, face value – exchange value of money, intrinsic value – value of the money, substitute – option, monopolized – controlled, denominations – face value of money, handling – to deal, monetary – dealing with money, digital wallets – electronic device for doing electronic transaction, durability – used for long period of time, cognizability – to be recognised, portability – easy to carry, homogeneous – same group, stability – fixed, medium – means to do, value – use, commercial – business, liquid asset – asset which can be converted into money, budget – estimated income and expenses set over period of time, illegal – not as per law, black marketing – trade using illegal activities, hoarding – holding the resources, bribery – influencing other by offering money, obstacles – problems, instability – not fixed, demonetization – change in current forms of money

By going through these Maharashtra State Board Class 11 Economics Notes Chapter 1 Basic Concepts in Economics students can recall all the concepts quickly.

Maharashtra State Board Class 11 Economics Notes Chapter 1 Basic Concepts in Economics

→ Types Of Sciences :

Natural Sciences:

• Called as exact sciences
• E.g. Mathematics, Physics, Chemistry

Social Sciences:

• Called as abstract / behavioural /inexact sciences
• Eg. Psychology, Sociology, Economics

→ Origin of the term ‘Economics’ lies in the Greek word ‘Oikonomia’ meaning management of the household.

→ Economics → ‘Queen of Social Sciences’ — Paul Samuelson.

→ Types of Economic Systems:

1. Capitalism
2. Socialism
3. Mixed Economy

→ ‘Artha’ means Wealth’ and ‘Shastra’ means ‘Science’

→  Kautilya:

• Royal advisor
• A great statesman
• Philosopher
• Economist

→  Kautilya was also known by the names ‘Chanakya’ or ‘Vishnugupta’

→ Kautilya was an author of book Arthashastra’.

→ Adam Smith is called as “Father of Economics”

→  Classical School Of Thought:

• Adam Smith
• T. R. Malthus
• David Ricardo
• J.S Mill

→ Neo-Classical School Of Thought:

• Irving Fisher
• A.C Pigou
• Alfred Marshall

→ Modern School Of Thought

• J.M. Keynes
• Lionel Robbins
• Paul Samuelson

→ Branches Of Economics:

Micro Economics

• Greek word – ‘Mikros’
• means small

Macro Economics:

1. Greek word – ‘Makros’
2. means large / aggregate / total

→  Basic Concepts Of Micro Economics

• Wants
• Goods and Services
• Utility
• Value
• Wealth
• Personal Income
• Personal Disposable Income (PDI)
• Economic Activity

→ Characteristics Of Wants:

• Wants are unlimited
• Wants are recurring in nature
• Wants differ with age
• Wants differ with gender
• Wants differ due to preferences
• Wants differ with seasons
• Wants differ due to culture

→ Classification Of Wants:

(1) Economic & Non-economic Wants
E.g.

• Economic wants : food, medicines, etc.
• Non-economic wants : air, sun shine, etc.

(2) Individual Wants and Collective Wants
E.g.

• Individual wants : a doctor using stethoscope, a judge wearing his coat, a teacher using his duster
• Collective wants : travelling by train, bus, aeroplane, etc.

(3) Necessities, Comforts and Luxuries
E.g.

• Necessities : food, clothing, shelter, health and education
• Comforts : washing machine, mixer, pressure cooker, geyser, etc.
• Luxuries : AC-car, Air conditioner, diamond necklace, etc.

→ Goods and Services :

• Goods : Any commodity which satisfies human wants is called as goods. Eg. chalk, toothbrush, tooth paste, pen, pencil, eraser, etc.
• Services : Any kind of services which satisfy human wants is called as services. Eg. service of a doctor, teacher, lawyer, carpenter, cobbler, tailor, etc.

→ Utility : A power in a commodity or service to satisfy a human want is called as utility.

→ Values:

(1) Value in use:

• Worth / Usefulness of a commodity
• Eg. Water

(2) Value in Exchange:

• Worth of Commodity / Service expressed in terms of another commodity
• Eg. Diamond

→ Characteristics of Wealth:

• Utility
• Scarity
• Externality
• Transferability

→ Personal Income : Income received from all the sources is called Personal Income.
→ Personal Disposal Income : It is a part of Personal Income which is left behind after payment of taxes.

→Types Of Income

1. Fixed Income
2. Fluctuating income
3. Unearned income
4. Money income
5. Earned income
6. Real income
7. Residual income
8. Contractual income

Economic Activity:

Production:
Creation of utility
Factors of Production :

• Land – Rent
• Labour – Wages
• Capital – Interest
• Entrepreneur – Profit

Distribution:
Division of factor rewards among different segments of the society

Exchange:
Sale and Purchase of goods and services

Consumption:
Making use of goods and services to satisfy human wants

→ Concept Of Macro Economics

• National Income
• Saving
• Investment
• Trade Cycles
• Economic Growth
• Economic Development

Economic Growth:

• indicates increase in the real national income of the country
• narrow and quantitative concept
• possible without economic development
• uni-dimensional concept
• it is spontaneous and reversible
• measured in terms of national income and per capita income

Economic Development:

• indicates economic growth plus progressive changes
• broader and qualitative concept
• not possible without economic growth
• multi-dimensional concept
• it is deliberate and irreversible
• measured in terms of agricultural productivity, industrial productivity, quality of human life, etc.

Word Meaning:

inventions – to create, empirical approach – method of inquiry and observation by experiments, psychology- study of mental behaviour of human being, abstract – ideas without any physical or concrete existence, sociology – study of social behaviour of human being, tendencies – behaviour, acquiring – to obtain, treatise – study of, broadest – large, crucial – important, compilation – list of something, statesman – political leader, literacy – written, Laissez faire – without any interference of Government, Neo-classical – time period between 1660 – 1798, attainment – a thing to achieve, requisites – necessary, material welfare – to get all the basic needs for well being, scarce – limited, alternative – many, comparatively – in compare of something, priority – importance, coined – create. Micro – small, variables – factor which changes, desire – strong feeling to have something, unending – something which has no ends, occasional – sometime, chronological – in order, preferences – choices, influence – effect, monetary – exchange of goods transaction and services in which money is involved, value – importance, well-furnished – well decorated, capacity – the total amount of something contains, immense – importance, utility – useful, transferability – to pass something from one person to another, tangible – physically can be touched, Notional – assumed, efficiency – productivity, earnings – income, stable – fixed, fluctuating – changing, contractual – as per the agreement, residual – leftover, unearned – earning without actual working, entrepreneur – a person who sets and runs the business, charity – to help other in form of money/material, reward – returns/ benefits, labour – do work physically, macro – large, aggregate – total, estimate – to calculate, foregoing- sacrificing, mobilization – moving, inflation – continuous rise in price (increase in price), depression – Continuous fall in price (decrease in price), quantitative – measured by quantity of something, progressive – continuous, multi-dimensional – in several measuring ways, narrow – small, spontaneous – immediate, reversible – moving in backward direction, deliberate – for long time, per capita income – each person income, paradox – opposite statement, qualitative – measured in terms of quality of something.

By going through these Maharashtra State Board Class 12 Political Science Notes Chapter 1 The World Since 1991 students can recall all the concepts quickly.

Maharashtra State Board Class 12 Political Science Notes Chapter 1 The World Since 1991

Introduction
The disintegration of the Soviet Union ended the era of the Cold War as well as the East-West division of the world. Developments in the post-Cold War period can be analyzed through five dimensions –

End of the Cold War and rise of new States:
The East European revolution of 1989, led to assertion of ethnic nationalism based on the right to self-determination. It was an expression of the middle class for freedom and economic well-being as well as for autonomy and eventually for independence. Many new States were created based on ethnic identity for e.g., Yugoslavia split into States like Croatia, Serbia, Bosnia-Herzegovina, etc. Similarly, 15 new States were created after the collapse of the Soviet Union.

Emergence of Unipolarity:
In 1990, Iraq invaded Kuwait. The USA led a multinational force to free Kuwait from Iraqi control. The US President, George H. Bush had described this victory as ‘New World Order as the multinational support to the USA came from NATO, Israel, Soviet Union, China and many Arab countries.

After the collapse of the Soviet Union in 1991, the world became unipolar and the New World Order implied US dominance and leadership in matters of global security. This had political and economic dimensions. The US employed “Soft Power” method i.e., without use of coercion or military force but through socio-cultural and economic influence.

Human rights and Humanitarian intervention:
There have been many instances of ethnic conflicts and bloodshed in the creation of new States particularly in Bosnia, East Timor, Somalia, Cambodia, etc. The UN Peacekeeping Force has intervened in a number of conflict situations to bring about peaceful resolution of the conflict as well as to maintain peace and protect human rights.

Humanitarian intervention refers to an increasing awareness about the significance of human rights and the need for their protection.

Terrorism:
Terrorism is defined as the use of violence or the threat to use violence, with an intention to create panic in society, in the pursuit of political/religious/ideological goals. Terrorist groups indulge in hijackings, bombings, etc., and are usually associated with separatist movements.

Modern-day terrorist operations are global in nature. Some instances of terrorist attacks post-1991, include Al-Qaeda attacks on 11th September 2001 in Washington D.C., Bali (2002), Mumbai (2008), etc.

Multipolarity and Regionalism:
In the post-Cold War era, the USA emerged as the only superpower. However, in recent times, the dominant position of the USA has been challenged due to the rise of Asian nations like China, Japan and India; creation of the European Union; military resurgence of Russia and growing importance of regional organisations like SAARC, etc.

Regionalism refers to creation of regional organisations based on geographical proximity or on common ideological, political, economic concerns in areas like communication, health, energy, education, etc. In the 1960s, organisations like ASEAN focused on economic issues while others like NATO focused on security issues. Some regional organisations are :

European Union (EU): The European Coal and Steel Community (ECSC) and European Economic Community (EEC) were created to foster economic interdependence. On 7th February 1992, the Maastricht Treaty was signed, to create the European Union. This led to expansion of spheres of cooperation to include internal affairs, judicial matters, foreign policy, etc.

The Euro (EU); is the official currency of 19 out of 28 countries of the EU. These nations are collectively called Eurozone. The Schengen Agreement (1985) was signed by France, Germany, Belgium, Netherlands and Luxembourg. Today 22 countries are part of the Schengen Area which is an area without internal borders. The EU functions on four key institutions viz., European Commission, European Parliament, European Council and European Court of Justice. The UK formally ended its membership of the EU on 31st January 2020.

SAARC – It was formed in 1985 at Dhaka with seven members viz., Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. In 2006, SAFTA was activated. Afghanistan joined SAARC in 2007. There are also nine observers such as EU, China, UK, USA, etc.

BIMSTEC – The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation was established in 1997. It comprises of five countries from South Asia viz., Bangladesh, Bhutan, India, Nepal, Sri Lanka and two countries from South-East Asia viz., Myanmar, Thailand. BIMSTEC aims to facilitate collaboration and rapid economic development among countries lying in adjacent areas of the Bay of Bengal.

BRICS – This organization was created in 2009 by members Brazil Russia India and China. In 2010, South Africa joined it. BRICS nations are fast-growing economies and have significant influence on global affairs.

G-20 – This forum was created in 1999 with the aim to discuss policies relating to financial stability. It includes developed countries like the USA, UK, France, Germany, the EU as well as developing countries like Argentina, Brazil, India, etc.

Shanghai Cooperation Organisation (SCO) – It was founded in 2001 in Shanghai by the leaders of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. In 2016, India and Pakistan joined SCO. The focus of SCO is to bring about peace, stability, and cooperation in the Eurasian region.

By going through these Maharashtra State Board Class 12 History Notes Chapter 12 India Transformed Part 2 students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 12 India Transformed Part 2

→ In the last lesson, we saw India’s advancement in the field of trade and commerce, science and technology, and all other related fields. We also studied different issues faced by India and the reorganization of the state.

→ In this chapter, we are going to study the development of India in the social domain including health, environment, education, and sports. India has a rich cultural heritage, several people from all over the world visit India to see its cultural heritage which gives impetus to tourism in India.

Social Domain:

→ The transformation of India is also visible in the social domain.

→ Human Rights Protection Act -1993 was passed in order to reduce social disparity.

→ National Human Rights Commission was established under this act. The objective of this act includes the protection of fundamental rights and to see that nobody is deprived of this Act.

→ In 2005, ‘The Domestic Violence Act was passed to provide protection to women from domestic violence.

→ The State Government of Maharashtra launched a programme ‘Lek Ladaki’ to save girl child. Government also banned sex/gender determination.

Health:
In 1995, the health department of Government of India launched programme called ‘Pulse Polio’ for the eradication of polio.

Ayush:
This department was established by ‘Ministry of Health and Family Welfare’ for developing alternate medicine like Ayurveda, Yoga and Naturopathy, Unani, Homoeopathy etc.

Environment:

→ Many states in India are facing the problem of air pollution due to increased number of automobiles and vehicles with poor maintenance.

→ The Centre for Science and Environment studied the problem of pollution in Delhi and recommended the use of CNG as a fuel for vehicle to overcome the problem of pollution.

→ The vehicles without PUC (Pollution Under Control) will not qualify for insurance and renewal of insurance.

→ Sundarlal Bahuguna (Chipko Movement), Medha Patkar (Narmada Bachao Andolan) and Dr. Rajendra Singh (Water Conservation) are some of the prominent names who contributed a lot for the protection and conservation of environment.

→ Rahibai Popere: She is popularly known as ‘Beejmata’ for her work to preserve seeds of native cultivars for the future generation. She also got ‘Nari Shakti’ award by the President of India on 8th March 2018.

→ Bhau Katdare: Bhau Katdare and his associates work for the conservation of nature. For this purpose, they established an institute called ‘Sahyadri Nisarg Mitra’. He worked to save and conserve ‘White-Breasted Sea Eagle’. He is also working to protect Olive Ridley turtles and ‘Pangolin’.

→ Prem Sagar Mestry and his associates are working for increasing the number of ‘Long-billed Vultures’ and ‘White back Vultures’ and to make available safe food for them through ‘Society for Eco Endangered Species Conservation and Protection – SEESCAP’.

Education:

→ Kerala became the first state in India with 100% literacy in 1990, which was declared as the ‘International Literacy Year.

→ Ernakulam was the first district in Kerala to become completely literate.

Education with special reference to Maharashtra:

→ Primary Education: In 1994, District Primary Education Programme (DPEP) was started with an aim of achieving 100% registration and attendance of children in primary schools and bringing down the number of drop-out.

→ Mid-Day Meal (Shaley Poshan Ahar): Started on 15th August 1995 to provide mid-day meal to children in primary school.

→ Sarva Shiksha Abhiyan – SSA

→ “Let’s all learn, Let’s all progress” was the motto of this programme which was launched in 2001.

→ The programme gave special attention to the education of girl child with special needs (Divyang).

→ ‘EDUSAT’ (GSAT-3), a satellite was launched to achieve universalisation of education in India.

Sports:

→ The Indian sports history was full of various achievements in different sports like the Indian hockey team used to return home victorious from international matches, Indian wrestler Kashaba Jadhav earned fame in international wrestling.

→ Due to globalisation some new sport and sportspersons became popular. It is essential for sportspersons in all fields to prove themselves every time they play. There is a lot of change in the format and the rules of games.

→ Many new sports became popular nowadays. Media and Sports channels have special slots for this. Some television channels are devoted to sports. Number of sports journals are published in India.

→ Various clubs/associations of each sport are established in India. The player has to sign professional contract with club. The IPL matches of cricket, World Cup matches, one day matches and 20-20, the matches of Pro Kabaddi are the examples of professionalisation of the sports world.

→ The government of India is taking a note of extraordinary sportspersons and honoured them with various awards.

→ Sachin Tendulkar was awarded with the highest award of ‘Bharat Ratna’. He was also nominated as a member of Rajya Sabha.

→ Sports is included in the school and college curriculum.

National Sports policy:

→ Government of India announced its sports policy in 2011 with the objective to take sports to all parts of India, to help the players to develop special skills, to build supportive and fundamental sport facilities, to help National Sport Federation of India, to initiate cooperation from industries, corporate private institution for the cause of sports, to create awareness of the importance of sports among people.

→ A scheme called ‘Come and Play’ was launched by Government in 2011.

→ Five sports complexes were made available to locals under ‘Sports Authority of India’.

→ The National Sports Academy was founded at Manipur in 2018. Bachelor, Master’s, M. Phil, Ph.D. and research in sports is also encouraged in this academy.

Khelo India:

→ This is a scheme launched by Indian Government with the objective of creating a larger popular platform and to establish excellence in sports.

→ To create interest about sports among the students from early days in school and to increase girl’s participation in sports are the two major aspect of this scheme.

→ For the development of sports ‘National Sports Development Fund’ was established.

→ In order to encourage the player ‘Rajiv Gandhi Khel Ratna’, Arjun Award, Dhyanchand Lifetime Achievement Award, Maulana Abul Kalam Azad Trophy and National Sports Encouragement Award are given every year.

→ ₹ 75,00,000 are awarded to the sportsperson who wins a gold medal in Olympic games. Similarly visually impaired are given good amount of rewards and jobs.

→ There is a provision of pension for the retired sportsperson.

→ In this way, Government of India encouraged sports by opening many avenues for youths and students.

Cultural Heritage and Tourism:

→ Tourism industry is one of the continuously growing industry not only in India but in entire world also.

→ It gives foreign exchange and increased revenue to the country.

→ The three ministries of Home Affairs, Tourism and Foreign Affairs together created the facility of e-visa, which included e-business visa, e-medical visa and e-visa.

→ A 24-hour telephonic service giving information in 10 foreign languages is available. This facility is available at 1363 number.

→ Institutes offering training course in ‘Hospitality and Hotel Management’ have been established in many cities in the country.

→ ‘Atulya Bharat’ an advertisement campaign was launched by the Indian government.

→ ‘GONORTHEAST’ a travel show was released on Discovery channel.

→ ‘Swadesh Darshan’ or ‘Prasad’ schemes were started by Indian Government for pilgrimage. Swadesh Darshan is a programme introduced for 13 types of pilgrimage tour.

→ Channels like BBC, Discovery, History are showing programmes on India’s cultural and historical heritage.

→ The Ministry of Tourism, Government of India and Federation of Associations in Indian Tourism and Hospitality (FAITH) organised Indian Tourism Mart-2018.

Glossary:

→ Universalization of education – The process of making education available to everybody

→ UNICEF – Acronym of United Nations Children’s Fund, Formerly (1946-53) United Nations International Children’s Emergency Fund, Special program of the United Nations (UN) devoted to aiding national efforts to improve the health, nutrition, education, and general welfare of children.

→ Landrace – A landrace is a domesticated and locally adopted traditional variety of species of plants or animals which has developed over a period of time.

→ Suo moto cognizance – It is a Latin term meaning “on its own motion”. It is used where a government agency especially courts acts on its own cognizance, as in the commission took sou moto control over the matter without anybody formally seeking intervention.

→ Corne and play scheme – It is primarily focused on encouraging local sports persons in areas where SAI sports facilities I centers are
operational.

→ Khelo India – This program has been introduced to revive the sports culture in India at the grassroots level.

→ Cultural heritage – It is an expression of the ways of living developed by a community and passed on from one generation to another. e.g., customs, traditions, places, objects, artistic expression, values, religious practices, and soon.

By going through these Maharashtra State Board Class 12 Psychology Notes Chapter 8 Positive Psychology students can recall all the concepts quickly.

Maharashtra State Board Class 12 Psychology Notes Chapter 8 Positive Psychology

Meaning Of Positive Psychology:
Positive Psychology is a newly emerging branch of psychology Martin Seligman officially introduced Positive Psychology as a subfield of psychology. It is the science of happiness, human strength and growth. It focuses on building of character strengths like courage, joy, etc., rather than on anxiety and conflict.

According to Seligman, Positive Psychology is “the scientific study of positive human functioning and flourishing on multiple levels that include the biological, personal, relational, institutional, cultural and global dimensions of life.”

Need and importance of positive psychology:
Negative events tend to be intense and hence easily attract our attention, e.g., outbursts of anger by a person will be quickly noticed. Positive Psychology believes that a person can prevent and overcome many psychological problems by adopting a positive approach. Therefore, today, positive psychology is important.

Life Above Zero:
Traditional psychology focused on life at and below zero. Zero is the line that divides illness from health. Hence, life below zero indicates a life that is full of problems stress, diseases, etc. Positive psychology emphasizes the study of life above zero.

-1 to +1 indicates neutral characteristics while below 0 indicates disorders/ illness. Life above zero covers a large area of positive aspects of behaviour such as mindfulness, resilience, happiness, hope, trust and empathy.

The ‘Broaden and Build theory of positive emotions’ by Barbara Fredrickson explains that when we experience positive emotions, we have more positive thoughts and also indulge in positive behaviours. Experiencing a positive emotion leads to broadening the number of actions that we can think of performing. This will increase and strengthen our psychological and social resources to lead a fulfilling life.

Happiness:
Happiness is a positive emotional state. It is subjective to each person, for e.g., people feel happy when they are successful or surprised or loved etc.
The main theories of happiness are:

• Need/ goal satisfaction theories – Happiness is experienced when a need or goal is satisfied, e.g., Rohit feels happiness when he clears IIT-JEE exams.
• Process/ activity theories – Happiness is experienced when one engages in a particular activity, e.g., Sumit enjoys trekking.
• Genetic/ personality theories – Genetic and personality characteristics are involved in the experience of happiness.

Determination of Happiness: Factors like health, prestige, income, success, etc., contribute to only a small portion of our total happiness.
The following factors are predictors of long-lasting happiness –

• Strong, intimate social relationships, positive contacts and good support system.
• Optimism leads to less of negative emotions like stress.
• Self-esteem enhances our confidence level and ability to approach challenges in a constructive manner.
• Achieving challenging goals- If the goals are too easy, it leads to boredom and if they are too difficult, it leads to frustration. Moderately challenging goals, increase the chance of success, leading to happiness.
• Perceiving meaning and purpose in life, without which we will experience frustration, boredom, etc.
• Looking at life’s challenges as an opportunity rather than a threat helps to develop our potential.

Optimism:
Optimism is a mental attitude that includes feelings of hopefulness, a belief that the future will be positive and favourable and that negative events are merely setbacks that are temporary and can be overcome.

The two components of optimism are –

1. feeling of being hopeful, confident, etc.
2. thinking i.e., view the adverse event as temporary and hence not to generalize failure to any future events. Seligman explained about optimism in the book ‘Learned Optimism.’. According to him, our perspective determines whether or not we will show optimism.

Empathy:
Empathy is the capacity to understand and feel what another person is experiencing from within their frame of reference, i.e., capacity to place oneself in another’s position. According to Simon Baron-Cohen, there are three components of empathy viz. cognitive empathy (perspective taking), emotional reactivity and social skills.

A world where people exhibit empathy will create a supportive, nurturing environment that encourages creativity and openness to experience.
Empathy builds a sense of security and trust. It is closely related to emotional intelligence and is a key to successful relationships.

Empathy can be nurtured by employing methods like –

• increase social interactions
• connecting through similarities
• understanding one’s own feelings
• challenging oneself
• cultivate a sense of curiosity
• widen the social contact circle.

Mindfulness:
Mindfulness is the basic human ability to be fully aware of where we are and what we are doing and not be overly reactive or overwhelmed by what is going on around us. It refers to mental awareness that helps to focus on the ‘Here and Now. Mindfulness helps to increase self-regulation.

Mindlessness means performing a task with less concentration and awareness mainly because we are absorbed in our own thoughts, memories, worries, etc. This can be dangerous sometimes.

Mindfulness Meditation: In Buddhist philosophy, mindfulness practice is a form of meditation. Mindfulness meditation helps in developing a non-reactive state of mind which is the foundation of a peaceful mind. This helps to reduce anxiety, frustration, etc., and enhances mental well-being.

Resilience:
According to the American Psychological Association, resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats or significant sources of stress such as family, health, etc. It is the act of ‘bouncing back’ in spite of barriers or setbacks.

There are three ways in which people face adverse situations viz.

1. consider oneself as a ‘victim’ and hence indulge in self-pity or anger
2. get overwhelmed by negative emotions like fear, anxiety, etc., which makes them vulnerable to physiological and psychological collapse
3. become upset about the disruption and experience a sense of loss, pain, grief, etc.

However, they understand that setbacks are a part of life so they work through these feelings in ways that foster strength and growth. Sometimes, they may emerge stronger than they were prior to the setback. Such persons are called Resilient individuals.

The four types of resilience are –

1. Physical resilience – It is the body’s ability to adapt to challenges, maintain stamina, and quickly recover when faced with illness, injury or other physical demands.
2. Psychological resilience – It is developing coping strategies that enable one to adapt to uncertainty, challenges and adversity and to move on without prolonged negative consequences.
3. Emotional resilience – It refers to the ability to manage one’s emotions by adequately using one’s resources to cope with adversity.
4. Community resilience – It is the ability of groups of people to respond to and recover from adverse situations such as natural disasters and other challenges to their community.

The ‘building blocks for resilience (7 C’s of Resilience)
According to Ann Masten, resilience is is ‘ordinary magic’, which involves behaviour that can be
easily learnt.

The 7 C’s of resilience are :

• Competence – Competence is the ability or know-how to handle situations effectively. Competence is acquired through actual experience.
• Confidence – True confidence is a strong belief in one’s own abilities. Confidence is gained by demonstrating competence in real-life situations.
• Connection – Family is the central force in an individual’s life. Connections with other people, schools and communities gives the individual a sense of security that allows him/her to be independent and develop creative solutions.
• Character – It refers to a clear sense of right and wrong and a commitment to integrity. An individual with character has a strong sense of self-worth and confidence.
• Contribution – An individual who understands the importance of personal contribution develops a sense of purpose that can motivate him/her, further leading to his/her psychological well-being.
• Coping – A person who learns to cope effectively with stress is better prepared to overcome life’s challenges.
• Control – When an individual realizes that he can control the outcomes of his decisions and actions, he is more likely to know that he has the ability to bounce back.

The importance of resilience:
Resilience helps the person to recover from setbacks with the least negative consequences.
Individuals high on resilience –

• regain their confidence after a period of emotional disturbance
• they are able to maintain their psychological well-being.

Glossary:

→ Empathy – it is the ability to understand and share the similar feelings of another.

→ Happiness – An emotional state showing feelings of joy, gladness, satisfaction and well being.

→ Life above zero – It is an element of positive psychology that involves adopting mindful responses to various experiences in life to raise our mental well-being and make life-enriching and meaningful.

→ Mindfulness – It is a state of being conscious and fully aware of the present moment.

→ Optimism – lt is a positive mental attitude that is characterised by hopefulness and a belief that good things will happen in the future.

→ Pessimism – It is a negative mental attitude that is characterised by hopelessness and an anticipation that negative events are more likely to happen.

→ Positive psychology – This is a branch of psychology that focuses on strengths and virtues that enable individuals, communities and organisations to thrive.

→ Resilience – This is the process of successfully adapting to challenges and difficulties in life.

By going through these Maharashtra State Board Class 12 Psychology Notes Chapter 7 First Aid in Mental Health students can recall all the concepts quickly.

Maharashtra State Board Class 12 Psychology Notes Chapter 7 First Aid in Mental Health

Introduction:
According to a study conducted by NIMHANS (2014-2016), nearly 10% of the population suffers from common mental disorders. Stressors such as work or academic pressures, lack of social support can contribute to poor mental health.

The main hurdles in receiving treatment for poor mental health are –

• Lack of awareness
• stigma attached to mental illness
• high cost of treatment
• reliance on non-medical explanations for mental illness, for e.g., evil spirits,
• shortage of trained mental health professionals.

Mental Health First Aid (MHFA) is an internationally recognized training programme designed to teach people how to identify the signs and symptoms of mental health and to provide assistance on a first aid basis. MHFA was originally developed by Betty Kitchener and Anthony Jorm.

First Aid in Mental Health is a concept based on the idea of “prevention is better than cure. If the early signs of mental illness are recognized, it can help in the following ways.

• Diagnosis – timely diagnosis at the onset of mental illness helps to prevent it from developing into a more severe form.
• Intervention – early intervention helps to get professional help.
• Relapse prevention – it can prevent reoccurrence of symptoms of the mental illness.

Algee – Action Plan:

Approach, assess and assist in any crisis: An attempt is made to understand the situation and observe if there are behavioural changes in the person whom we are concerned about.

Listen non-judgmentally: We should listen to the other person without letting our opinions influence us. We should not judge/ criticise but listen with acceptance and empathy. It does not imply that we agree with what the other person is saying but it ensures that the person feels supported.

Give support and information: This helps the person to feel more in control of the situation since they have emotional and informational support.

Encourage the person to get professional help: Persons suffering from mental illness may hesitate to seek help due to lack of knowledge or due to stigma attached. Others may not know how to respond to someone showing ‘red flags’ of mental illness and may do more harm than good. Mental health professionals are trained to help the person to identify the problem and cope with the situation.

Encourage self-help and other support strategies: Self-help strategies are tasks that help to increase our resources to deal with stress and to maintain mental health such as exercise, rest, and sleep, proper diet, having hobbies, etc.

First Aid In Depression:
Individuals who experience depression, commonly have a negative thinking style and feel worthless and helpless.
A number of changes are noticed in their behaviour such as

• complaining of feeling tired or sleepy all the time
• avoiding family and friends and spending much time alone
• remaining sad and forgetful
• bunking class or performing poorR7 in exams and having difficulty in concentrating.

First Aid In Anxiety:
If anxiety is excessive or persists after the anxiety creating situation has subsided, it can lead to anxiety disorders such as phobias, acute stress disorder, etc.

The factors contributing to anxiety are genetic factors; imbalance of certain neurotransmitters, traumatic events, etc.
Symptoms shown in anxiety –

Behavioural Addictions:
Behavioural addictions refers to the need to engage in an activity or behaviour repeatedly, even though it has a negative impact on one’s physical and mental health. For e.g. shopping addiction, gambling addiction, internet addiction, etc.

Internet and Social media usage: The amount of time spent on using internet as well as the purpose of its usage is significant. Over-dependence on the internet and social media can lead to problems in life. The four C’s are indicators of excessive usage of internet – Craving, Control, Compulsion, Consequence.

The Red Flags that indicate over-dependence on internet are-

• Feelings of euphoria while using the internet.
• Physical symptoms like headache, dry eyes, etc.
• Inability to keep to schedules and boredom with routine tasks.
• Neglect of personal hygiene and nutrition just to remain online.

NIMHANS (Bengaluru) has begun the Service for Healthy Use of Technology (SHUT) to deal exclusively with mental health issues that are technology-related.
Providing First Aid in mental health issues is a bridge between the person and the mental health professional.

Glossary:

→ Mental Health – It is a state of mind that is characterised by emotional well-being, good adjustment and ability to cope with the demands and stresses of daily living.

→ Mental well-being – It is a feeling of wellness in which an individual realises his or her own potential, can cope with stressful situations and can make productive contributions to the society to live a meaningful life

→ Sleep hygiene – Techniques and routines that can he followed to improve sleep patterns.

→ Stigma – A negative social attitude which is associated with individuals diagnosed with a mental disorder and often leads to social disapproval, discrimination and exclusion of that individual in society.

→ Procrastination – Is the avoidance of completing a task that needs to be completed.

By going through these Maharashtra State Board Class 12 History Notes Chapter 9 World: Decolonisation students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 9 World: Decolonisation

→ In many Asian and African counties, the process of decolonisation was accelerated in the first half of the 20th century. ‘United Nations’ was largely responsible for facilitating the process of decolonisation.

Reasons for accelerated process of decolonisation:

• Conflict among European coloniser countries.
• World War I and II, and anti-colonial movements in the colonies.
• No intellectual base for the exploitation of colonies.
• England gave internal autonomy to several countries.

Introduction of system of trustees by League of Nations:
After the end of World War I England and France were entrusted the role of trustee to manage the administration of the colonies which were under the control of Germany and Turkey.

Decolonisation of Asia.

→ India got independence on 15th August 1947, Malta on 21st September 1964 Cyprus on 19th February 1959.

→ In 1971 England withdrew its army from the Gulf of Iran.

→ After that England released its hold on Singapore, Indo-China, Morocco, Tunisia and Algeria which were under the French control.

Maldives.

• Portuguese entered Maldives in 1507.
• Sultan of Maldives defeated Portuguese and began to pay tribute to Dutch.
• British established its hold on Maldives. They took Indian labourers to work in paddy fields in Maldives.
• Maldives became independent on 26th July 1965.

Sri Lanka.

• The British defeated Dutch and Portuguese and ruled over Sri Lanka from 1798 to 1948.
• There were uprisings in Sri Lanka against the British rule.
• Sri Lanka became independent in 1948.

Myanmar.

→ Portuguese established their hold on Myanmar in 1599.

→ Various dynasties of Myanmar got together and defeated Portuguese in 1611, later they amalgamated their kingdom and formed United Myanmar.

→ Three Anglo-Burmese wars were fought and the British won all the wars.

→ The people of Myanmar created an association under the leadership of Aung San.

→ British granted independence to Myanmar on 4th January 1948 and appointed Aung San as its Vice President.

Decolonisation of Africa.

The causes of strengthening independence movement in Africa –

1. Introduction to western education.
2. Awareness regarding American independence struggle, French Revolution, Nationalism and national pride.
3. Grant of more rights.

Bandung conference.

→ India called first conference of Asian countries in 1947.

→ The first conference of Asian and African countries held in 1955 at Bandung in Indonesia.

→ The problems of Afro-Asian countries and world peace and mutual co-operation were the topic of this conference.

Concept of African Unity.

→  H.S. Williams formed an organisation in London called Pan-African Association.

→  W.E.B. Du Bois called series of conferences which resulted in the idea of Pan-African unity

Decolonisation in the African Continent:
After the end of First World War ‘League of Nations’ divided the colonies among England, France and
Belgium and appointed a committee of 11 members to supervise the administration of the colonies.

→  The state of South Africa was formed in 1920.

→  Egypt got independence before the Second World War.

→  Libya, Tunisia, Morocco, Algeria and Ghana became independent one after another.

→  Ivory Coast, Madagascar, Mali, Cameroon, Somalia and other 12 French colonies got independence.
Algeria became independent by conducting plebiscite.

→  The United Republic of Tanzania came into existence.

→  Italy and Germany lost their colonies in Africa at the end of Second World War in 1945.

→  In this way with the heightened spirit of independence and nationalism, many countries in Asia and Africa obtained their freedom.

Glossary:

→ Colonialism – is a practice by which a powerful country directly controls less powerful countries and uses its own power and wealth.

→ National pride – Devoted love, support and defence of one’s country.

→ Independence – Freedom from being governed or ruled by another country.

→ Plebiscite – A vote by which the people of an entire country or district express an opinion for or against a proposal especially on a choice of government or ruler.

→ Revolution – Action taken by a large group of people to try to change the government of a country, especially by violent action.

→ Unity – The state of being joined together or in agreement.

→ Amalgamation – The process in which separate organization unite to form a larger organisation or group.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 3A Demand Analysis students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 3A Demand Analysis

Meaning of Demand:
Demand refers to a desire or want for goods. Desire is the willingness to have some commodity which is backed by willingness and ability to pay.

Definition:
According to Benham, “The demand for anything at a given price is the amount of it, which will be bought per unit of time at that price. ”

Features of Demand:

• Demand is a relative concept.
• Demand is always expressed with reference to time and price.

Demand Schedule:
Demand schedule is a tabular representation which shows functional relationship between price and quantity demanded for a particular commodity.
A Demand schedule may be either individual demand schedule or market demand schedule.

Individual Demand Schedule:

→ Individual demand schedule is a tabular representation of various quantities of a commodity demanded by an individual consumer at different prices during a given period of time.
This can be explained with the help of following schedule.

Individual Demand Schedule

→ The above individual demand schedule shows an inverse relationship between price and quantity demanded of commodity ‘X’. At a higher price of ₹ 50 per kg. of commodity ‘X’, the demand is only 2 kg. of ‘X’ commodity and as price falls from ₹ 50 to ₹ 10, quantity demanded rises from 2 kg to 10 kg. of ‘X’ commodity.

Individual Demand Curve:
It is a graphical representation of individual demand schedule. X-axis represents quantity demanded and Y-axis represents the price of the commodity. The demand curve DD slopes downward from left to right. It has a negative slope as price and demand are inversely related.

Market Demand Schedule:

→ Market Demand Schedule is a tabular representation of various quantities of a commodity demanded by different consumers at different prices during a given period of time. This can be explained with the help of following schedule –

Market demand schedule

→ The above Market Demand Schedule shows an inverse relationship between price and market demanded of commodity ‘X’. At a high price of ₹ 10 per kg of commodity ‘X’, the market demand is only 30 kg and at a lower price of ₹ 2, market demand rises to 90 kg of commodity ‘X’.

Market Demand Curve:
It is a graphical representation of market demand schedule. X-axis represents quantity demanded (Market Demand) and Y-axis represents the price of the commodity. When the above market demand schedule is plotted on this graph, we derive the market demand curve DD, which slopes downwards from left to right indicating inverse relationship between price and quantity demanded.

Reasons justifying downwards sloping demand curve:

→ The Law of Diminishing Marginal Utility: Marginal utility goes on diminishing when there is increase in the stock of commodity and consumer tends to buy more when price falls and vice-versa.

→ Income Effect: Whenever there is a fall in price of a commodity, purchasing power of a consumer gets increased, which enables him to buy more of that commodity.

→ Substitution Effect: When price of commodity rises consumer tends to buy more of cheaper substitute goods and less of the commodity whose price has increased.

→ Multi-purpose Uses: When a commodity can be used for satisfying multiple needs, its demand will rise with a fall in its price and vice-versa.

→ New Consumers : When there is fall in price of a commodity, a new consumer class buy the commodity as they can afford it. Thus, total demand for commodity increases with fall in price.

Types of Demand:

→ Direct Demand: When a commodity satisfies the want of a consumer directly, it is said to have direct demand. Demand for consumer goods like food, clothes, sugar, vegetables, milk, etc.

→ Indirect Demand: It refers to demand for goods which are required for further production. It is also called as derived demand. E.g. demand for factors of production like land, labour, capital, etc.

→ Joint or Complementary Demand: When two or more goods are demanded at a same time to satisfy single want, it is known as Joint or Complementary Demand. E.g. car and fuel, pen and ink, mobile phone and Simcard, etc.

→ Composite Demand: When one commodity can be utilized for several needs or multiple uses, it is known as Composite Demand. E.g. electricity, steel, coal, etc.

→ Competitive Demand: It is demand for those goods which are substitute for each other. E.g. tea or coffee, sugar or jaggery, Pepsi or Thumbs-up, etc.

Determinants of Demand:

→ Price: Demand for a commodity is mainly influenced by its price. Normally at a higher price the demand is less and at a lower price it is more. Thus, demand varies inversely with price of a commodity.

→ Income: Income determines the purchasing power of a consumer. Rise in income will lead to a rise in demand of a commodity and fall in income will lead to a fall in demand of a commodity.

→ Price of Substitute Goods: Demand for cheaper substitute goods will rise when there is fall in price of such goods. E.g. when sugar price rises then demand for jaggery will rise.

→ Price of Complementary Goods: Demand changes with changes in prices of complementary goods like car and petrol, etc.

→ Nature of Product: Under necessary and unavailable circumstances, the demand of a commodity will continue to be same irrespective of the corresponding price. E.g. medicine to control blood pressure.

→ Size of Population: Demand for commodity depends upon size and composition of population like age structure, gender ratio, etc. E.g. larger the child population more will be the demand for toys, chocolates, etc.,

→ Expectation about the Future Prices: If the consumer expect a rise in price in the near future, they will demand more at present price. Similarly, when they expect fall in price, then they will buy less at present price.

→ Advertisement: Effective advertisement and sales promotion will lead to greater demand for a product. E.g. cosmetics, toothbrush, etc.

→ Taste, Habits and Fashions: Habits influence market demand. If people habituated to the consumption of certain goods they will not give up such habits easily. E.g. demand for liquor, cigarettes, etc. Sometimes fashion change the attitude and preference of consumer, which in turn changes the market demand.

→ Level of Taxation: There would be increase in price of goods and services due to high rates of taxes which results in decrease in demand and vice-versa.

Other factors:

• Climatic condition
• Changes in technology
• Government policy
• Customs and Traditions, etc.

Law of Demand:

→ The law of demand is one of the important law of consumption which explains the functional relationship between price and quantity demanded of a commodity. Prof. Alfred Marshall in his book ‘Principles of Economics which was published in 1890, has explained the consumer’s behaviour as follows:

Statement of the Law:

→ According to Prof. Alfred Marshall, “Other things being equal, higher the price of a commodity, smaller is the quantity demanded and lower the price of a commodity, larger is the quantity demanded. ”

→ In other words, other things remaining constant,’ demand varies inversely with price. Marshall’s law of demand describes the functional relationship between demand and price. It can be presented as:

Dx = f (P_x) [where D = Demand for Commodity
x = Commodity
f = function
P_x = Price of a commodity]

Assumptions to Law of Demand:

→ Constant Level of Income: Consumer’s income must remain unchanged because if income increases consumer may buy more even at a higher price not following the law of demand.

→ No Change in Size of Population: The size of population, gender ratio and age composition are assumed to remain constant. As such changes are sure to affect demand.

→ Prices of Substitute Goods remain constant: The price of substitute goods should remain unchanged as change in the price will affect the demand for the commodity.

→ Prices of Complementary Goods remains constant: A change in the price of one goodwill affect the demand for other, thus the prices of complementary goods should remain unchanged. No expectation

→ about Future Changes in Prices: Consumer’s expectation of change in price of a commodity in future will affect his present consumption.

→ No Change in Tastes, Habits, Preferences, Fashions, etc.: If the taste changes, then the consumer’s preference also will change which will affect demand. When commodities are out of fashion, then their demand will be low even at a low price.

→ No change in Taxation Policy: The level of direct and indirect tax imposed by the government on the income and goods should remain constant.

Demand Schedule and Demand Curve:
The law of demand is explained with the help of the following demand schedule and diagram:
Demand Schedule

From the above demand schedule we observe that at a higher price of ₹ 50 per kg, quantity demanded is 1 kg. When price falls from ₹ 50 to ₹ 40, quantity demanded rises from 1 kg to 2 kg. Similarly, at price ₹ 30 quantity demanded is 3kg and when price falls from ₹ 20 to ₹ 10 quantity demanded rises from 4 kg to 5 kg. This shows an inverse relationship between price and demand.

In the above diagram, ‘X’-axis represent quantity demanded and ‘Y’- axis represent the price of the commodity. The demand curve DD slopes downwards from left to right showing an inverse relationship between price and demand. It has a negative slope.

Exceptions to the Law of Demand:
There are some important cases in which the demand for the commodity is greater when price rises and smaller when price falls. Such cases are called exceptions to the law of Demand. In such case, demand curve slopes upwards from left to right and it has a positive slope.

→ Giffen Paradox: Demand for low-quality goods and inferior goods decrease even if there prices falls.
According to Sir Robert Giffen when price of bread declined, people did not buy more because of increase in their real income and they preferred to buy superior goods like meat.

→ Prestige Goods: Rich people buy more expensive goods like gold, diamonds, etc., even when there prices are high to maintain their status.

→ Speculation: People are tend to buy more commodities if they expect prices to rise further. E.g. prices of oil, sugar, etc. are expected to rise before Diwali, so people buy more of these commodities even at higher price.

→ Price Illusion: Consumer feels that goods at higher price are of better quality, therefore demand for such goods are higher even at rise in their prices.

→ Ignorance : Sometimes people completely ignore the price of commodity and buy more of that commodity ignoring higher price.

→ Habitual Goods: Due to habit of consumption, certain goods like tea is purchased in required quantities even at higher price.

Variations in Demand:
Variations in Demand refers to change in quantity demanded for a commodity due to change in price alone and other factors remaining constant.
There are two types of variations in demand.
They are (1) Expansion or Extension of Demand (2) Contraction of Demand

→ Expansion or Extension of Demand: It refers to rise in quantity demanded due to fall in price and other factors like tastes, income, etc. remaining unchanged.

→ It is shown by a downward movement on the same demand curve. In the given diagram,’ DD is the demand curve which is showing downward movement on the same demand curve from point ‘b’ to point ‘c’ and indicates an expansion of demand.

→ Contraction of Demand: It refers to fall in quantity demanded due to rise in price and other factors like tastes, income, population, etc. remaining unchanged.

→ It is shown by an upward movement on the same demand curve. In the given diagram, DD is the demand curve which is showing upward movement on the same demand curve from point ‘c’ to point ‘a’ and indicates contraction of demand.

Changes in Demand:
Changes in demand refers to change in quantity demanded due to change in other factors while price remaining constant.

There are two types of changes in demand.
They are : (1) Increase in Demand (2) Decrease in Demand

→ Increase in Demand: It refers to rise in quantity demanded due to favourable changes in other factors like tastes, income, etc. and price remaining constant.

→ Demand curve shifts to the right-hand side of the original Demand curve. In the given diagram DD is the original demand curve. D₁D₁ demand curve indicates increase in demand by shifting towards the right side of original demand curve from point bb to point ‘c’.

→ Decrease in Demand: It refers to fall in quantity demanded due to unfavourable changes in other factors like tastes, income, etc. Demand curve shift to the left-hand side of the original Demand curve. In the given diagram DD is the original demand curve. D₂, D₂, demand curve indicates decrease in demand by shifting towards the left-hand side Quantity Demanded of original demand curve from point ‘b’ to point ‘a’.