Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 4 Supply Analysis students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 4 Supply Analysis

Terms related to Production and Supply:

→ Producers undertake the production of goods and services which earn profit from them. They supply more goods and services at a higher price to earn profit. Like demand, supply is related to price and is also an important factor that determines the market price. Demand and supply are interrelated aspects of the market.

→ Supply is the outcome of stock and stock is the outcome of production. So, it is important to understand supply and its related concepts like production, stock, supply, etc.

→ Production implies the creation of utility, with the help of land, labour, capital, and organization. Production results in an output of goods.

→ Output is the outcome of the process of production in a given time in the economy with the help of factor inputs.

→ Stock is the total quantity of commodity available to the producer for sale at a point in time. Stock determines potential supply.

→ Reservation price is the seller’s minimum price below which the seller is not willing to sell even a single unit. If the market price is more than the reservation price then the seller will be willing to offer his stock for sale from his stock and vice versa. Usually, reservation price is low in the case of perishable goods and high in the case of durable goods.

Definition of Supply:
Supply in defined as “the quantities of a commodity that a seller is willing and able to offer for sale at a given price, during a certain period of time”. He sells more at a higher price and less at a lower price. Supply analysis may be of individual supply or market supply.

Individual Supply:
It refers to various quantities of a commodity an individual seller or producer is willing to sell at different prices. This can be shown by the individual supply schedules.

Individual Supply Schedule: It is a tabular representation of various quantities of a commodity that produce is willing to offer for sale at different prices during a given period of time as shown below.

Prices of Commodity ‘X’ (₹)	Quantity Supplied per day (units)
2	10
4	20
6	30
8	40
10	50

Individual Supply Curve: It is a graphical representation of an individual supply schedule. It slopes upwards from left to right showing direct relationship between price and quantity supplied as shown on next page :

Market Supply:
It is the sum total of individual supply. It refers to various quantities of a commodity offered by all the sellers for sale at different prices during a given period of time. It can be shown by market supply schedule or market supply curve.

Market Supply Schedule: It is a tabular representation of various quantities of a commodity offered for sale by different sellers at different prices during a given period of time. It is obtained by horizontal summation of all individual supply as shown below.

Market Supply Curve: It is a graphical representation of market supply schedule. It slopes upwards from left to right indicating direct relationship between price and quantity supplied as shown below.

Determinants of Market Supply:

→ Price of the Commodity – Price increases, Supply decreases and vice versa.

→ Cost of Production – Cost of Production increases – Supply decreases and vice versa.

→ Technique of Production – Advanced technology, Supply increases and Outdated technology, supply decreases.

→ Government Policy – Favourable government policy, supply increases and vice versa.

→ Exports and Imports – More exports, supply decreases, more imports, supply increases.

→ Future expectation – Fall in price expectation, supply decreases and vice versa.

→ Climatic Conditions – Favourable climatic conditions, supply increases and vice versa.

→ Nature of Market – Short period market, supply decreases, Long-period market, supply increases.

→ Infrastructure Facility – Well connected infrastructure, supply increases and vice versa.

→ Price of other goods – Price of substitute goods increases, supply increases, and vice versa.

→ Natural and Man-made Calamities – Natural calamities, reduction in supply.

Law of Supply:
According to Prof. Alfred Marshall, “Other things remaining constant, higher the price of the commodity, greater is the quantity supplied and lower the price of the commodity, smaller is the quantity supplied. ”
In other words, quantity supplied of a commodity varies directly with price.

Symbolically, it is expressed as S = f (P) [S = Supply, P = Price, f = Function of]
The law can be better understood with the help of a market supply schedule and market supply curve.

Market Supply Schedule: It is a tabular representation of various quantities of a commodity offered for sale by different sellers at different prices during a given period of time. It is obtained by horizontal summation of all individual supply as shown below.

Market Supply Curve: It is a graphical representation of market supply schedule. It slopes upwards from left to right indicating direct relationship between price and quantity supplied as shown below.

Assumptions of the Law of Supply:

1. No change in Cost of Production
2. No change in Technique of Production
3. No change in Weather Condition
4. No change in Government Policies
5. No change in Transport Cost
6. No change in the quantity of goods kept for self-consumption
7. No change in Price of Competitive goods
8. Constant Scale of Production If all these factors do not change, then more will be supplied at higher price and vice-versa.

Exceptions to the Law of Supply:
In following cases, more may not be supplied at higher price and vice-versa.

• Labour supply
• Savings
• Future expectations
• Urgent need for cash
• Rare goods
• Agricultural goods
• perishable goods

Variation in Supply:
When quantity supplied of commodity changes due to change in its price, other factors remaining constant, it is known as Variation in supply. It can be of two types :

(A) Expansion or Extension in Supply : When quantity supplied rises due to an increase in the price of a commodity, other factor remaining constant, it is called expansion or extension in supply. It is shown by an upward movement on the same supply curve.

When price rises from 0P to 0P₁ supply in the market also rises from 0Q to 0Q₁( Hence it is shown by upward movement on the same supply curve.

(B) Contraction in Supply : When quantity supplied falls due to fall in the price of a commodity other factors remaining constant, it is called contraction in supply. It is shown by downward movement on the same supply curve.

When price falls from 0P to 0P₂, supply in the market also falls from 0Q to 0Q₂. Hence this is shown by downward movement on the same supply curve.

Changes in Supply :
When the quantity supplied of a commodity changes due to factors other than price, it is known as change in supply. It can be of two types :

(A) Increase in Supply : When more quantity is supplied at the same price due to changes in factors other than price, it is called increase in supply. It takes place when, there is decrease in price of inputs, more imports, technological up gradation, fall in taxes, etc. It is shown by shift of the supply curve to the right of original supply curve.

When at the same price 0P, quantity supplied rises from 0Q to 0Q₁ it is called increase in supply.

(B) Decrease in Supply : When less quantity is supplied at the same price, due to change in factors other than change in price it is called decrease in supply. It takes place when there is increase in price of inputs, old technological, more taxes, etc. It is shown by a shift of the supply curve to the left of original supply curve.
When at the same price 0P, quantity supplied falls from 0Q to 0Q₂, it is called decrease in supply.

Concepts of Cost and Revenue :

(A) Concept of Cost: Cost of production means the aggregate money expenditure incurred by a firm on various inputs like land, labour, capital, etc. in the form of rent, wages, interest, transport, insurance, etc. There are three main types of cost TC, AC and MC.

Total Cost (TC): It is the total expenditure incurred by a firm on the factors of production required for the producing of goods and services. It is the sum total of Total Fixed Cost (TFC) and Total Variable Cost (TVC). Hence, TC = TFC + TVC

• Total Fixed Cost (TFC):
  It is the cost incurred on fixed factors of production like land, factory, building, capital, etc.
• Total Variable Cost (TVC):
  It is the cost incurred on variable factors like labour, raw material, electricity, etc.

Average Cost (AC): It refers to per unit total cost of production. It is obtained by dividing Total cost by number of units of that commodity produced.
Hence, AC = \(\frac{\mathrm{TC}}{\text { Total output }}\)

Marginal Cost (MC): It is net addition made to the total cost by producing one more unit of output.
Hence, MCn = TC_n – TC_{n -1} (n = Number of unit produced)

(B) Concept of Revenue :
Revenue refers to the amount received by a firm from the sale of given quantity of commodity in the market at different prices. Hence, Revenue = Price x Quantity Sold

The concepts of Revenue consists of three types :

1. Total Revenue (TR),
2. Average Revenue (AR),
3. Marginal Revenue (MR).

Total Revenue (TR): Total Revenue refers to total receipts of the firm from its sales of commodity. It is obtained by multiplying the price per unit of the commodity with total number of units sold.
Hence, TR = Price x Quantity Sold

Average Revenue (AR): It refers to the revenue per unit of the commodity sold.
Hence, AC = \(\frac{\mathrm{TR}}{\text { Total quantity sold }}\)

Marginal Revenue (MR):
Marginal revenue is the net addition made to TR by selling an additional unit of the commodity.
Hence, MR_n = TR_n – TR_n-1 (n = Number of units sold).

By going through these Maharashtra State Board Class 12 History Notes Chapter 3 India and European Colonialism students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 3 India and European Colonialism

→ In this chapter, we will learn about the spread of colonialism in India and its impact.

Portuguese.
Vasco da Gama, a Portuguese seafarer reached the port of Calicut (Kozhikode) in 1498. By the 16th century, the Portuguese had established their control over a considerable portion of the Indian coasts. They established colonies on the western coast and built forts for their protection. They had a strong naval force. The Portuguese had established such firm control on the Indian Ocean that the Indian rulers had to get a license (Cartaz) from them for sailing on the Indian Ocean.

The Portuguese had colonies on the west coast of India at Diu, Daman, Chaul, Goa, Honnavar, Gangoli, Mangalore, Kannur, Kochi and Kollam. The Portuguese had colonies spread from Cape of Good Hope to Macau in China. The Portuguese prohibited building of any religious monuments except churches in the Indian provinces under their rule. They also tried to suppress the local languages and offered employment to people with the intention of attracting them to Christianity.

British.
The British established the ‘East India Company’ on 31st December 1600. Queen Elizabeth, I granted permission to the company to trade in the eastern countries. The British were in need of a permanent place as carrying out trading transactions proved to be tedious. To avoid this, the company decided to build their factories (emporiums).

The staff of the factories were called ‘factors’. Charles II, the King of England issued a charter allowing the company to build forts in India, to maintain an army and to make treaties with non-Christians. The company operated from Surat and Madras.

A fort and a factory were built by the British in Chennai. The fort was named ‘Fort St. George’. In 1661, the islands of Mumbai were given as a gift to Charles II, the King of England on his engagement to Princess Braganza of Portugal by the King of Portugal. Abraham Shipman was appointed as the Governor of Bombay. Charles II leased Mumbai to the East India Company. In 1669, Sir George Oxenden was appointed as the Governor of Surat and commander-in-chief of Mumbai.

Dutch.
In 1602, several Dutch companies formed a company known as ‘United East India’. The Dutch Government issued license to the company to conduct trade with the eastern countries. By the middle of the 17th century the company had established Dutch colonies and factories right from the eastern coast of Africa to Japan. It encompassed the present-day regions of Mozambique, South Africa, Yemen, Iraq, Pakistan, India, Bangladesh, Myanmar, Siam, Vietnam, Laos, Cambodia, Taiwan, China, Japan, Indonesia and Malaysia.

They established their first factory in 1602 at Petapuli in the northern parts of Coromandel coast and their first colony at Machilipatnam which is mentioned as ‘Mosalia’ in ‘Periplus of the Erythrean Sea’.

French.
In 1664, the French East India Company was established under the initiative of Jean Baptiste Colbert, the French finance minister to King Louis XIV. The company was given authority to trade with eastern countries. Thereafter they established factories at Surat, Pondicherry, Chandranagar, Mahe, Karikal and Machilipatnam. The first French factory was established in Surat in 1668.

Pondicherry became the main centre of the French operations. The British and the French started interfering in the internal matters of the Nawab of Karnataka which resulted in three battles from 1744 to 1763 C.E. known as the ‘Carnatic Wars’. The French were defeated in the third battle.

Glossary:

→ Factories – Emporiums where goods are bought, stored and sold

→ Vice-rei – Viceroy

→ Commodities – Merchandise or goods

→ Charter – Agreement

→ Lease – Rent

→ Monopoly – Control.

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

Maharashtra State Board Class 12 History Notes Chapter 2 European Colonialism

Colonialism is part of Imperialism. Countries like England, France, Portugal, Spain, etc. occupied nations in Asia and Africa and established colonies there. India was one of the colonies of England. One of the main characteristics of colonialism was to transport raw material from the colonies to one’s own country and use the colonies as marketplaces for selling their final products. Colonialism gave rise to political and economic slavery but also caused psychological slavery. Commercial revolution in the 15th century led to discoveries of new lands thereby leading to establishment of colonies in Asia and Africa.

Colonialism:
Meaning and Nature.
Meaning: Colonialism can be defined as the act of a developed nation occupying the land of a less developed, distant nation and establishing their rule on the occupied country.

Nature: Colonialism led European nations to compete with one another to gain economic, social and political supremacy. Extreme nationalism, feeling of racial superiority, industrialisation, aggressive approach etc., are some of the factors that led to the growth of colonialism.

Causes and Consequences of Colonialism:

Causes :

• Industrial Consequences
• Requirements of Raw Material
• Investing surplus Capital
• Sources of Minerals
• Geographic Importance
• Availability of Labour
• Feeling of Racial Superiority

Consequences:
Economic exploitation of people in Asia and Africa.
Loss of independence of colonies.

A new awareness emerged in the political, social, economic and educational fields.
Awareness of democratic systems and modern values like liberty, equality and fraternity. Introduction of principles like administration based on a fundamental legal system, judicial system, availability of education to all.

European Colonialism:

America :
→ Domination of European countries over the weaker nations and subjecting the inhabitants to slavery.

→ Among the European nations Portugal and Spain were at the forefront in the competition.

→ Portugal brought Brazil, and Spain brought Mexico under their rule.

→ During the reign of Queen Elizabeth I explorers were encouraged to undertake expeditions.

→ In 1496, John Abbot was granted permission to establish colonies on the American land.

→ Several incidents like The Stamp Act (1765), The Boston Tea Party (1773), Declaration of Independence (1774) led the colonies to fight for independence from British domination.

→ The conflict between the colonies and the British army continued and after several battles gained independence.

→ The victory at Saratoga was a turning point for the colonies as the French agreed to support the colonies in their conflict against the British.

→ Spain too joined the colonies in their struggle for independence.

→ Finally, on 7 October 1780, George Washington defeated the British army and on 19th October the British General Lord Cornwallis surrendered and America became independent.

→ This revolt is known as the ‘American Revolution’.

→ Australia and New Zealand became colonies of the British empire.

→ England entered to protect India and other neighbouring countries of India from other colonialist European nations. For e.g., Myanmar was known as ‘Brahmadesh’ (Burma).

→ The British wanted to establish their control in Burma because it was rich in natural wealth and a potential market.

→ Three Anglo-Burmese wars were fought.

→ The first was fought during the tenure of Lord Amherst who was the Governor-General of India.

→ The second during the tenure of Lord Dalhousie.

→ The third during the tenure of Lord Dufferin.

→ Nepal, a small Himalayan kingdom also came under the British dominance, which led to two Anglo-Nepalese wars. After the defeat of the British army, Nepal gained sovereignty in 1923.

→ Similarly, the British tried to gain control of Sikkim, Bhutan and Tibet.

→ Africa was known for its dense forests, widespread lakes, swamps and deserts which the
Europeans were unfamiliar with.

→ A Geographical Conference was convened by King Leopold II of Belgium at Brussels in 1876 to discuss the possibilities of dividing the African territory amongst themselves.

→ Eventually, Africa came to be divided among Germany, France, England, Spain etc.

Glossary:

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

→ Dominance – Control or power

→ Dissemination – The action or fact of spreading something, especially information widely

→ Supremacy – Superiority, domination

→ Encompass Include or cover

→ Capitalist – Industrial, investor

→ Domination – Control, power

→ Federation – Alliance, group.

By going through these Maharashtra State Board Class 12 History Notes Chapter 1 Renaissance in Europe and Development of Science students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 1 Renaissance in Europe and Development of Science

As the ‘Medieval Period’ in Europe came to an end, there were advancements in various fields. Unknown lands were discovered and movements of religious reformation began. The ancient Greek and Roman traditions of art, architecture, philosophy etc, were revived. This age also saw overall development in many areas, especially science. This period is called ‘Renaissance’ which means ‘Rebirth’. In other words, this was the beginning of a new era.

European Crusades: Wars known as ‘Crusades’ were fought by the Christians in Europe in the 11th century to regain the holy lands of Jerusalem and Bethlehem which came under the Islamic rule.

The first Crusade started in 1096 C.E. However, the Christian crusaders failed to liberate Jerusalem and the region around it even after nine crusades. The failure of the crusades was attributed to the attitude of the Pope and the European rulers. Other factors like common people losing faith, rift between the Pope and the European kings etc. also contributed to the failure of the crusades.

The consequences of the crusades was that it led to the end of feudalism in Europe, the faith in the Pope began to decline, the contact with Central Asia opened new avenues for Italy and Germany and also saw the rise of a new class of traders.

Renaissance in Europe: Renaissance in Europe began in the 14th century C.E. and reached its zenith in the 15th and 16th century C.E. This period gave a new direction to human intellect and thinking. This period brought about a change in all walks of human life.

New inventions brought about fundamental changes in the techniques of warfare and dissemination of knowledge. Changes were noticed in the fields of Science, Arts, Textile industry, Metallurgy and others. For e.g., the first printing press was started in Germany by Johannes Gutenberg in Germany. The invention of the telescope by Galileo, in Zoology ‘Taxonomy’, was developed to classify animals etc.

Geographical Discoveries: This period also saw new Geographical discoveries and new sea- routes being discovered.
Marco Polo, Ibn Batuta, Bartholomew Dias, Vasco-da-Gama were some of the explorers who discovered not just sea – routes but new lands.

For eg., Marco Polo – Introduced China and other Asian countries to Europe.
Ibn Batuta – A scholar and traveller who visited India, Maldives, Sumatra for various reasons.
Bartholomew Dias – Reached the ‘Cape of Good Hope’ on the orders of the Portugal king John II.
Vasco da Gama-Reached the eastern coast of Africa and eventually landed at Calicut (Kozhikode) in 1498.

Industrial Revolution:

What is ‘Industrial Revolution?’
‘Industrial Revolution’ indicates the transition from manual production to mechanised production.

Factors of industrial production:

• A new class of capitalists came into existence
• Private ownership of industrial establishments
• Availability of raw material for the textile industry in colonies led to the textile industry flourishing in England
• Availability of cheap labour
• Adversely affected Indian economy

Effects of Industrial Revolution:

• Economic Nationalism was the outcome of the industrial revolution.
• Putting economic restrictions on the rival country such as
• Prohibiting the import-export transactions of other countries
• levying heavy tolls on their goods
• establishing colonies in Asia and Africa
• fighting battles with the natives of the colonies
• Surplus production was another effect of industrial revolution
• Limitless exploitation of the colonies
• Concepts of racial superiority
• Aggressive colonial policies
• Immense expanse of growth of European nations like England, France, Belgium, Germany etc.

Glossary

→ Renaissance – Means ‘Rebirth’ or revival of ancient traditions of art and architecture in 15th centuries

→ Crusades – One of the wars fought in Palestine by the European Christians against the Muslims in the Middle Ages

→ Humanism – A rationalist outlook or system of thought attaching prime importance to human rather than divine or supernatural matters

→ Empirical – Based on, concerned with, verifiable by observation or experience rather theory or pure logic

→ Alchemist – A person who studies Alchemy

→ Cartographer – Mapmaker, mapper

→ Expedition – Voyage, trip, mission

→ Nationalism – Patriotism

By going through these Maharashtra State Board Class 12 Geography Notes Chapter 8 Geography: Nature and Scope students can recall all the concepts quickly.

Maharashtra State Board Class 12 Geography Notes Chapter 8 Geography: Nature and Scope

→  The nature of the earth’s surface is full of variations. There are various features with variations such as mountains, hills, plains, plateaus, oceans, rivers, lakes, deserts, etc.

→  In geography, we study climatic patterns on the global and local level, its impact on vegetation and wildlife, wind patterns, soils and its types, etc.

→  Types of landforms, submarine relief, ocean currents, salinity, etc., are also studied by a geographer.

→  All the above-mentioned physical aspects affect human populations.

→  Such variations bring about changes in social and cultural features too, which changes from place to place and time to time.

→  Variations are also observed in the form of settlements, transportation networks, markets and ports and many other elements developed by man during the entire period of man’s cultural development.

→  Taking into consideration the above all factors, the subject matter of geography can be divided into two major themes – Physical Factors and Human Factors. Thus, giving rise to two branches in Geography – Physical Geography and Human Geography.

→  Human Geography studies relationship between man and environment.

→  It also studies distribution attributes related to man’s social and environmental phenomena around the world.

Nature of Geography as a discipline

• The earth is dynamic. Hence, there are variations in its physical and cultural environments.
• Geography is a study of the earth and phenomena related to it.

Geographers study –

→ Through scientific and supplemental methods with experiments, data collection, observation patterns, data analysis and research.

→ Geographical distributions, their patterns and variations as well as the causes behind these phenomena.

→ Geographical distributions of various crops in different regions. Thus, understanding the impact of climate, soil, market demand and application of technology to identify the differences.

→ The space, area, region and geographical location. Skills and techniques used in study of geography make it empirical and practical in nature.

→ Skills developed by geographers enables them to make observations and describe various phenomena on the earth; and enriched the subject and newer branches of geography went on developing.

→ There are two contrasting approaches to study geography, which is known as Dualism in geography.

There are two contrasting approaches in Geography –

1. Nature is more dominant than man, which is called Environmental Determinism.
2. Man dominates nature, which is called Possibilism.

→  Since there are many such dualistic approaches in geography; it makes geography dualistic in nature.

Scope of Geography

→ Almost every discipline, under natural and social sciences, is linked with Geography.

→ Therefore, geography has a very strong interface with natural and social sciences.

→ Since many branches of geography have developed from mainstream disciplines geography has become an interesting and interdisciplinary subject.

Latest Trends in Geography:

• Geographer explains the phenomena within the frame of cause and effect relationship.
• It helps to analyse and predict future through data collection and modelling.
• This results in intra and inter-disciplinary avenues and widens the scope of geography and its dynamic nature of adding new subjects.

The following are uses of geographical models:

• Population growth and density
• Land use
• Intensity of cropping
• migration patterns of population
• Industrialization
• urbanization
• Growth of cities
• Growth of Slums

By going through these Maharashtra State Board Class 12 Geography Notes Chapter 7 Region and Regional Development students can recall all the concepts quickly.

Maharashtra State Board Class 12 Geography Notes Chapter 7 Region and Regional Development

→ Natural (physical) or man-made (administrative boundaries, political or linguistic) feature of a small or large area of land having common features help us to identify them separately.

→ Demarcated boundary separates one region from the other. The geographical area that distinguishes itself from another area is called a region.

→ The classification of regions is based on common characteristics and is homogeneous in nature, which constitutes of a region.

→ A region is a basic unit in any geographical studies and helps us to differentiate one area from another.

Types of regions

→  Formal regions and functional regions are the two types of regions.

→  A formal region is an area inhabited by people who have one or more characteristics in common.

→  On the basis of characteristics, a formal region is divided into a physical region or political region.

→  A functional region is an area organized to function socially and economically as a single unit.

→  Functional region involves more than one type of physical or political regions.

Factors affecting regional development

→  Development is a relative term. Therefore, while considering regional development the physical, economic, social, environmental aspects of a region are taken into consideration.

Physical factors and regional development

→ Regional development is affected by physical factors like climate and relief of the region.

→ Areas where land is less fertile, water is scarce and diseases flourish will be less developed.

→ A region with a large number of resources, but climate is not suitable, or lack of population to exploit resources, the region will not develop.

Population and regional development

• Population and regional development are closely interrelated. The parameters of development are measured keeping in mind the population of a region.
• The important factors of development are the quantity and quality of population as well as the efficiency of resources used by the population in a region.

Land use and regional development

→ There is a difference in the percentage of land use in developed and underdeveloped regions.

→ Demand for land use changes according to the society’s needs as well as the changes in the socio-economic conditions.

Primary, secondary and tertiary economic activities and regional development

→ Primary, secondary and tertiary economic activities carried out in any region, give an idea about the regional development in that region.

→ Regions are developed if they contribute more in the tertiary sector and depend less on primary activities.

→ The Human Development Index (HDI) is used to access various aspects of development in a region.

Regional imbalance:

→ The balanced regional development policy is considered on economic, social and political grounds.

→ The policy is adopted to reduce inequalities between different regions of a country and also increasing the standard of living to a higher level at a uniform rate.

Causes of regional imbalance in India:

→ There is regional imbalance in India since the level of development is not similar in all sub-regions.

Policies to reduce regional imbalance

→ Identify underdeveloped regions.

→ Identify the reasons behind non-development.

→ Allocate funds to regions which need them in particular sectors or fields.

→ Sector-wise investments to improve conditions of such areas.

→ Funds are given in the form of subsidies and investments in roads, schools, agriculture, irrigation, industries, housing, medical and health facilities, etc.

→ Special care for regions that have been identified as deserts, drought-prone, hilly, and areas dominated by tribal population.

→ Decentralisation of industries to reduce the regional imbalance.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 8 Public Finance in India can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 8 Public Finance in India

Meaning:
Public Finance is a combination of two words – Public and Finance.
Here, public represents government and finance is related to income and expenditure.

Definitions of Public Finance:
According to Hugh Dalton: “Public finance is one of those subjects which are on the borderline between economics and politics. It is concerned with the income and expenditure of public authorities and with the adjustment of one with the other. ”

According to Prof. Findlay Shirras: “Public finance is the study of the principles underlying the spending and raising of funds by public authorities.”

Difference between Public Finance and Private Finance:

Points	Public Finance	Private Finance
(1) Objectives	To offer maximum social advantage	To fulfil private interest.
(2) Determination of Expenditure	Government first determines the volume and different ways of its expenditure	An individual consider his income first and then determines volume of expenditure
(3) Credit status	It enjoys high degree of credit in the market	Credit of private individuals is limited
(4) Right to print currency	The government can print notes through R.B.I.	Pvt. individual cannot print notes.
(5) Elasticity of Finance	More elastic – greater scope for changes.	Less elastic – no much scope for changes.
(6) Effect on economy	It has great impact on economy.	It has marginal impact on economy.

(4)

Public Expenditure:
It refers to expenditure incurred by public authority (Central, State and Local bodies).
Public Expenditure is classified as Revenue and Capital Expenditure as well as Developmental and Non-developmental Expenditure.

Reasons for growth in public expenditure:

• Increase in the activities of Government
• Rapid increase in population
• Growing urbanization
• spread
• Spread of democracy
• Inflation
• Industrial Development
• Disaster management

Public Revenue:
It refers to aggregate collection of income with the government through various sources.
Sources of public revenue :
(A) Tax Revenue
(B) Non-Tax Revenue

(A) Tax Revenue: According to Prof. Seligman, “A tax is a compulsory contribution from the person to the Government without reference to special benefits conferred. ”

Characteristic of Tax:

1. Compulsory contribution to the government by every citizen of the country.
2. It helps the government to incur welfare expenses for citizen.
3. Taxpayer does not get any direct benefit by paying tax.
4. It is imposed on income, property, goods and services.

Canons (Principles) of Taxation:
Canons of taxation were propounded by Adam Smith.

→ Canon of Equity or Equality i.e. a person to pay tax as per his ability to pay.

→ Canon of Certainty i.e. a taxpayer should know the amount of tax liability and the way of paying tax.

→ Canon of Convenience i.e. time of levying tax and manner of levying tax should be convenient to taxpayer.

→ Canon of Economy i.e. cost of collecting tax should be minimum.

Types of Taxes:
There are two main types of taxes i.e. Direct Tax and Indirect Tax.

Direct Tax	Indirect Tax
(1) It refers to that tax which is paid by a person on whom it is legally imposed.	It refers to that tax which is imposed on one person but paid by the other.
(2) E.g. Income tax, Wealth tax, etc.	E.g. excise duty, custom duty, G.S.T. etc.
(3) Impact and incidence of direct tax are on the same person. Tax burden cannot be shifted.	The Impact and incidence of indirect tax may be on different persons. Tax burden can be shifted.
(4) Direct tax is paid at the time of earning income.	Indirect tax is paid at the time of spending income.

Classification of Direct Tax:

1. Proportionate Tax
2. Progressive Tax
3. Regressive Tax.

Non – tax Revenue:
Revenue received by the government from the source other than tax revenue is called as non-tax revenue.
Sources of Non-tax revenue :

• Fees
• Prices of Public Goods and Services
• Special Assessment
• Fines and Penalties
• Gifts, Grants and Donations
• Special Levies
• Borrowings

G.S.T. – Goods and Services Tax:
It came into effect in India on 1st July, 2017. It is a comprehensive tax base with nationwide coverage of goods and services.
Expected Benefits of G.S.T:

• Creating unified common national market for India.
• Boost foreign investments and “Make in India” campaign.
• Simplify the tax system in the country.
• Improve investment in the country.
• Boost export and manufacturing activity.
• Reducing final price of goods.
• Generating employment and eradicating poverty.

Public Debt:
Generally, government expenditure exceeds government revenue. So, government needs to raise loans, which is called Public Debt.

Types of Public Debt:

→ Internal Public Debt: Borrowings by government within the country i.e. from its citizens, banks, central bank, financial institutions, business houses, etc.

→ External Public Debt: Borrowings by government from outside the country i.e. from foreign governments, foreign banks, international organisations like IMF, World Bank, etc.

Fiscal Policy:
It is a financial policy implemented by the government. It deals with public expenditure, public revenue and public debt.

Financial Administration:
It is concerned with efficient implementation of revenue, expenditure and debt policy of the government. It includes preparation and implementation of government budgets for economic growth.

Government Budget:
It is an important instrument of financial administration to regulate all financial affairs of the state.
Budget is the annual financial statement showing expected receipts and proposed expenditure of the government in a financial year, i.e., from 1st April to 31st March.

Types of Budget:

→ Balanced Budget: When estimated revenue and expenditure of the government are equal, it is said to be balanced budget. Government Receipts = Government Expenditure.

→ Surplus Budget: When estimated government receipts are more than government expenditure, it is said to be surplus budget. Government Receipts > Government Expenditure.

→ Deficit Budget: When government receipts are less than government expenditure, it is said to be deficit budget. Government Receipts < Government Expenditure.

By going through these Maharashtra State Board Class 12 Geography Notes Chapter 6 Tertiary Economic Activities students can recall all the concepts quickly.

Maharashtra State Board Class 12 Geography Notes Chapter 6 Tertiary Economic Activities

→ Natural resources are obtained by primary activities; secondary activities are dependent on products obtained from primary activities. Activities that act as links between primary and secondary are known as tertiary activities.

→ Tertiary activities are mainly service-providing activities. Therefore, it is called the service sector.

→ Buying and selling of goods, transport, and communication, loading and unloading, credit facilities, marketing, import-export, etc., are tertiary activities.

→ The distribution of service activities is dependent on the number of geographical factors like climate, topography, nearness to the sea, or continental location, which affects tertiary activities.

Trade and Commerce

→ Trade refers to the voluntary exchange of goods and services, where two or more parties are involved.

→ Bilateral or multilateral trades are major types of international trade. International trade takes place because of specialisation in production and differences in human resources.

→ International trade takes place only if it is mutually beneficial to trading partners (countries) and when it is a comparative advantage for both.

→ There are various geographical factors that affect trade. These are, differences in natural resources, climate, population factors, culture, economic cost and specialisation.

Transportation

→ Transportation is a service or facility through which passengers, freight and industrial products are carried from one place to another.

→ Transportation is a very important tertiary activity in the development of trade.

→ Means of transportation are essential components of transport systems wherein, each mode has its own requirements and features.

Communication

→ Different means of communication are used to express one’s thoughts and making it reach the other.

→ Communication is being depicted through pictures, symbols, verbal communication using signs, body language, postures, etc.

→ This is the era of information. Therefore, telephones, mobiles, internet, etc., are used to communicate.

→ These means of communication are largely used for regional development. Each country is trying to stay updated with information. Hence, technology in communication has increased manifold.

Other services

→ Tourism is an important tertiary economic activity. The population employed in tourism is increasing.

→ The climate, natural beauty of the region, availability of land and sea adventure sports are major contributors to the country’s GDP.

→ The geographical factors like the site and situation of a place, climate, relief, altitude, biodiversity, accessibility, availability of water plays an important role in the growth of tourism.

→ However, transportation facilities, lodging and boarding facilities, cultural diversity, government policies and political conditions are human factors affecting the development of tourism.

→ Considering tertiary economic activities, the services included in this sector are varied in nature. Therefore, these are categorized into quaternary (fourth) and quinary (fifth) activities.

→ Quaternary activities refer to think, research, and develop ideas whereas quinary activities involve work related to administrative character.

→ The difference between the two types is that the people involved in quinary activities are involved in the highest level of decision-making or policy-making.

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

Maharashtra State Board Class 12 Economics Notes Chapter 3B Elasticity of Demand

Definition: According to P. A. Samuelson, “Price elasticity is a concept of measuring how much the quantity demanded responds to changing price.”

Elasticity of demand in fact refers to the degree of responsiveness of the quantity demanded of a commodity to a change in the variable on which demand depends.

Types of Elasticity of Demand:

1. Income Elasticity of Demand
2. Cross Elasticity of Demand
3. Price Elasticity of Demand

→ Income Elasticity of Demand: It refers to the degree of responsiveness of a change in quantity demanded to a change in the income only, other factors including price remaining unchanged.
E_y = \(\frac{Percentage change in Quantity Demanded}{Percentage change in Income}\)

Symbolically, it can be written as follows :
E_y = \(\frac{\frac{\Delta \mathbf{Q}}{\mathrm{Q}}}{\frac{\Delta \mathrm{Y}}{\mathrm{Y}}}\) = \(\frac{\Delta \mathrm{Q}}{\mathrm{Q}}\) × \(\frac{\mathrm{Y}}{\Delta \mathrm{Y}} \)

Where,
Q = Original Quantity Demanded
Y = Original Income
ΔQ = Change in Quantity Demanded
Y = Change in income

→ Positive Income Elasticity: Normal goods which includes necessaries, comforts and luxuries, for which demand increases with increase in income. There is direct relationship between income and quantity demanded. Normal goods have positive income elasticity.

→ Negative Income Elasticity: Inferior goods have a negative income elasticity. As income increases the demand for inferior goods fall. There is an inverse relationship between income and quantity demanded of inferior commodity. Inferior goods are substituted by superior goods.

→ Zero Income Elasticity: When change in income does not have any effect on the demand for a
commodity then the income elasticity is zero for e.g. goods like salt, pins, etc.

Cross Elasticity of Demand: Cross Elasticity of Demand refers to the degree of responsiveness of quantity demanded of a commodity X to a given change in the price of commodity Y. X and Y may be a substitute or complementary goods like tea or coffee or car and petrol.

Cross Elasticity = \(\frac{Percentage change in Quantity demanded of commodity ‘X’}{Percentage change in Price of commodity ‘Y’}\).

Symbolically, it can be written as follows:
E_c = \(\begin{gathered}
\frac{\Delta \mathrm{Q} x}{\mathrm{Q} x} \\
\hline \frac{\Delta \mathrm{P} y}{\mathrm{P} y}
\end{gathered}\) = \(\frac{\Delta \mathrm{Q} x}{\mathrm{Q} x}\) × \(\frac{\mathrm{P} y}{\Delta \mathrm{P} y}\)

Qx = Original Quantity demanded of commodity ‘X’
Py = Original Price of commodity ‘Y’
ΔQx = Change in Quantity demanded of commodity ‘X’
ΔPy = Change in Price of commodity ‘Y’

Price Elasticity of Demand: Price Elasticity of Demand refers to the degree of responsiveness of quantity demanded of a commodity to the change in its price, other factors remaining constant.

According to Prof. Alfred Marshall, “Price Elasticity of Demand (Ed) is the ratio of proportionat e
change in quantity demanded ola commodity to a given proportionate change in its price.”

E_d = \(\frac{Percentage change in Quantity demanded}{Percentage change in Price}\)
Ed = \(\begin{gathered}
\frac{\Delta \mathrm{Q}}{\mathrm{Q}} \\
\hline \frac{\Delta \mathrm{P}}{\mathrm{P}}
\end{gathered}\) = \(\frac{\Delta Q}{Q}\) × \(\frac{\mathrm{P}}{\Delta \mathrm{P}}\)

ΔQ = Change in quantity demanded (New quantity – Old quantity demanded)
ΔP = Change in Price (New price – Old price)
P & Q = Original price and original quantity demanded.

(a) Unitary Elastic Demand : (Ed = 1) .
When proportionate or percentage change in quantity demanded is exactly equal to proportionate or percentage change in price, then demand is said to be unitary elastic. For instance a 10% fall in price of a commodity leads to 10% rise in demand of that commodity.

Ed =\(\frac{Percentage change in Quantity demanded}{Percentage change in Price} \)
Ed =\(\frac{10}{10}\) = 1 Slope of the curve is rectangular hyperbola
∴ Ed = 1

(b) Relatively Elastic Demand: (Ed> 1)
When proportionate or percentage change in quantity demanded is more than proportionate or percentage change in price, then demand is said to be relatively elastic demand. For instance a 5% fall in price of a commodity leads to 10% rise in demand of that commodity.
Ed= \(\frac{Percentage change in Quantity demanded}{Percentage change in Price}\)
Ed = \(\frac{10}{5}\) = 2
i.e. Ed> 1
Slope of the curve is flatter.

(c) Relatively Inelastic Demand : (Ed < 1) When proportionate or percentage change in quantity demanded is less than proportionate or percentage change in price, then demand is said to be relatively inelastic demand.

For instance a 10% fall in price of a commodity leads to 5% rise in demand of that commodity. . Ed = \( \frac{Percentage change in Quantity demanded}{Percentage change in Price}\) Ed = \(\frac{5 \%}{10 \%}=\frac{1}{2}\) = 0.5 i.e. e>1
Slope of the curve is steeper slope.

(d) Perfectly Elastic Demand or Infinitely Elastic Demand: (Ed =∞)
When a slight change or no change in the price of a commodity Y brings about infinite change in the demand, then it is said to be perfectly elastic demand. For instance, fall in price by 5% may lead to an infinite rise in demand.

Ed = \( \frac{Percentage change in Quantity demanded}{Percentage change in Price} \)
Ed= \(\frac{\text { Any Number }}{0}\) =∞
e = ∞
Slope of the curve is horizontal slope.

(e) Perfectly Inelastic Demand: (Ed = 0)
When a proportionate or percentage change in price brings no effect on quantity demanded of a commodity, then it is said to be perfectly inelastic demand. For instance price falls by 10% or rise by 10%, demand remains constant.

Ed = \( \frac{Percentage change in Quantity demanded}{Percentage change in rice}\)
Ed = \(\frac{0}{10}\) = 0
e = 0
Slope of the curve is vertical.

Methods of measuring price elasticity of demand

Factors influencing Elasticity of Demand:

Determinants	Nature	Price Elasticity of Demand
Availability of Factors	(a) Abundant	(b) Few
	(a) Relatively Elastic	(b) Relatively Inelastic
Nature of Commodity	(a) Necessary	(b) Luxury goods
	(a) Relatively Inelastic	(b) Relatively Elastic
Habits	(a) Habituated	(b) Not Habituated
	(a) Relatively Inelastic	(b) Relatively Elastic
Time Period	(a) Short-run	(b) Long run
	(a) Relatively Inelastic	(b) Relatively Elastic
Postponement of Consumption	(a) Possibility of Postponement	(b) Impossible to Postpone
	(a) Relatively Elastic	(b) Relatively Inelastic
Number of uses of a commodity	(a) Several	(b) Specific
	(a) Relatively Elastic	(b) Relatively Inelastic

Importance / Significance of the Concept of Elasticity of Demand:

By going through these Maharashtra State Board Class 12 History Notes Chapter 10 Cold War students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 10 Cold War

→ The term was first used by Walter Lippmann, an American political columnist.

→ The struggle between two superpower nations was known as Cold War. In such a war, nations do not use weapons but have a competition to show their power by researching new weapons, technology, the space race, etc.

→  It started after World War – II Whole world was divided into two superpower nations i.e. America and Russia.

→  Russia ruled over Eastern Europe and America, England and France got Western Europe. We can say that Europe was divided into Communist ideology (Russia) and Capitalist and democratic ideology (America).

Progression of Cold War:

→ Europe was divided into two Superpowers namely America and Russia.

→ The Soviets were supporting Communists based on Government ownership and America was supporting Capitalists based on private ownership. Many important events took place like the Sino-Soviet Treaty of Friendship’ and ‘Korean Conflict’.

→ Russian Prime Minister Stalin and American President Eisenhower tried to maintain peaceful co-existence but tension arose at the Cuba incident.

→ Mikhail Gorbachev was the new leader of Russia in 1985. His period was known as the end of the Cold War. His ideology for Russia was restructuring and openness.

→ There was chaos in world politics during the cold war such as the world was divided into two Superpower groups, misunderstanding between nations, the invention of weapons, etc.

→ Few agreements were signed by America and Russia like NATO, SEATO, ANZUS, CENTO, and Warsaw Pact.

NATO:
was signed by 29 European countries, members were Norway, America, Italy, Denmark, Netherland, Portugal, Turkey, Belgium, Canada, Iceland, Germany, Luxemburg, and Spain.

→ According to this treaty attack on any member, country would be treated as an attack on all member countries.

→ All will maintain peace and security.

→ Any problem among members can be solved through discussion.

→ Headquarters of NATO will be in Paris and America had a significant role in decision making in NATO.

→ Against Nato, Russia signed the Warsaw Pact with communist nations in Europe.

ANZUS: Treaty was signed by
A: Australia
NZ: New Zealand
US: America

This is known as three-way defence pact. Main moto to form this treaty was to protect the ‘ countries in Pacific Ocean from communist China and did not want England and France to have any upper hand in the matter of their national security.

SEATO:

→ In September 1954, the United States, France, Great Britain, New Zealand, Australia, Philippines, Thailand and Pakistan formed the Southeast Asia Treaty Organisation or SEATO.

→ SEATO’s main goal was to stop the spread of communism and the organisation did this in various ways.

CENTO:
The Central Treaty Organisation (CENTO), originally known as the Baghdad Pact or the Middle East Treaty Organisation (METO), was a military alliance of the cold war. It was formed in 1955 by Iran, Iraq, Pakistan, Turkey and the United Kingdom and dissolved in 1979.

Sino – Soviet Security Pact:
This treaty was between Russia and China. Russia was ready to provide economic, industrial, and technological aid to China.

Warsaw Pact:
Soviet Russia and seven communist countries from Europe namely Albania, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland and Romania signed this treaty to strengthen communist nations and oppose American policies.

Non-Alignment Policy of India:

• India remained neutral and shaped its own peace strategies. This is known as ‘NAM’.
• Pt. Jawaharlal Nehru and few others were the architects of NAM.
• NAM is about adopting foreign policy with peace, supporting other nations’ struggle for independence, not involving in any treaty with superpower nations.

SAARC.

1. An organisation which would work for economic and social development in Asia.
2. Bangladesh, Bhutan, India, Pakistan, Sri Lanka, Maldives and Nepal are members of SAARC.

Commonwealth.

→ Countries which were under the British empire and now sovereign formed ‘Commonwealth of Nations.

→ Motive behind this was to achieve political and administrative machinery by exchange of experience and ideas.

→ The British king or queen is the head of the Commonwealth.

Glossary:

→ Atrocious -Extremely bad or unpleasant.

→ Colonialism – The policy or practice of acquiring ful] or partial political control over another country, occupying it with settlers, and exploiting it economically.

→ Diplomatic relations – The arrangement between two countries in which each has representatives in the other country.

→ Disarmament – The reduction or withdrawal of military forces and weapons.

→ Dissemination – The action or fact of spreading something widely.

→ Imperialism – A policy of extending a country’s power and influence through colonization, use of military force, or other means.

→ PerenniaLly – Permanently/Recurrent.

→ Protectorates – A state that is controlled and protected by another.

→ ‘Warsaw Pact’ – A treaty signed by Soviet Russia bringing together the communist countries in Europe.