Category: Maharashtra State Board Notes

By going through these Maharashtra State Board Class 11 Economics Notes Chapter 4 The Economy of Maharashtra students can recall all the concepts quickly.

Maharashtra State Board Class 11 Economics Notes Chapter 4 The Economy of Maharashtra

→ Maharashtra State has been divided into 36 districts.

→ 6 Revenue Divisions of Maharashtra

1. Mumbai
2. Pune
3. Nasik
4. Aurangabad
5. Amravati
6. Nagpur

→ Features Of Maharashtra Economy

• Abundant natural resource, skilled manpower, technologically advanced infrastructure, etc.
• Highest GSDP & SPCI as compared to other states.
• Literacy rate 82.3% – 2011 Census
• Most favoured destination for creativity, skill, development, tourism and investment.
• Sex Ratio L929 females per 1000 males
• 2nd 1arges populated F4ate country (11.24 crores- Census 2011)
• 3rd largest state in country in terms of geographical area. (3.08 lacs sq. km)
• Most urbanised state

→ Problems In Economic Development Of Mahakashtra

1. Agricultural Sector
2. Industrial Sector

1. Agricultural Sector:

• Decrease in average size of land holdings
• Increase in number of small and marginal farmers
• Excessive use of chemical fertilizers and pesticides (soil degradation)
• Agricultural indebtedness
• Poor implementation of land reforms
• Inadequate irrigation facilities
• Lack of capital and marketing facilities
• Improper implementation of rural development plans
• Impact of climatic change

2. Industrial Sector:

• Delays in Government procedure
• Lack of opportunities for skill development
• Lack of updated technology
• Lack of infrastructure facilities
• Lack of motivation to new enterpreneurs
• Lack of development programmes
• Regional imbalance

→ Measures Undertaken By The Govt. For – Agricultural Development:

• Distribution of quality seeds at reasonable rates.
• Number of outlets increased for fertilizer and pesticide distribution. Development of irrigation facilities.
• Electrification of agricultural pumps and to provide electricity on demand.
• Provide financial assistance.
• Setting up of APMC, Establishment of agro export zones, horticultural training centres, grading and packing facilities.
• Create awareness by use of mass media for making agriculture a profit making business.

→ Industry : Maharashtra is an industrially advanced state.
The share of industry in Net Value Added (NVA) is about 18%. Maharashtra is the first choice of domestic and foreign investor.
Maharashtra is ranked as number one investment destination in India.
Maharashtra is in forefront in terms of FDI inflow in India.

→ Problems In Industrial Sector:

• Lack of opportunities for skill development
• Delays in Government procedure
• Lack of updated technology
• Regional imbalance
• Lack of infrastrucLural facilities
• Lack of development programmes
• Lack of motivation to new enterprises

→ Measures Undertaken By ‘The Government For Industrial Development:

• Introduction of MAITRI (Maharashtra Industry, Trade and Investment Facilitation Cell)
• Awards for export performance space rent subsidies to small scale industries
• Introduction of MAITRI (Maharashtra Industry, Trade and Investment Facilitation Cell)
• Initiation of Single window cell
• Creation of (SEZ) Special: Economic Zones
• Implementation of Maharashtra State Industrial Cluster Development Programme (MSICDP)

→ Service Sector :

• It consists of – insurance, tourism, retail banking, education and social services.
• It provides services to business sector as well as final consumers.
• It is largest employment generating and fastest growing sector.
• Core area of service sector includes – Fintech, IT/ITES, start ups, cloud computing, electric vehicles, defence, tourism and private universities.

→ Core Area Of Service Sector:

• Infrastructure
• Tourism
• Hospitality
• Entertainment Industry

Infrastructure:

1. Economic Infrastructure
2. Social Infrastructure

Economic Infrastructure:

• Energy
• Transport
• Communication

Social Infrastructure:

• Health
• Education

→ Measures for development of Economic Infrastructure:

• Increase in installed capacity of electricity generation.
• Rural electrification, network improvement and energy conservation programmes.
• Direct benefit transfer scheme to LPG consumers.
• Implementation of Road development pIan. (2001 .2021).
  (Target – 3.37 lakh kms of road)
• Metro Railway – at Mumbai and Nagpur.
• Constitution of Maharashtra Port Development Policy,
  (Sagarmala Programme- by Central Government)

→ 4 Levels of Education:

1. Primary Education (STD. I To VIII)
2. Secondary and Higher Secondary Education (STD. IX to XII)
3. Higher Education
4. Others:

1. Primary Education (STD. I To VIII)

• Scheme: Right to Education (RTE) (6-14 yrs)
• Sarva Shiksha Abhiyan(SSA)
• Expenditure: ‘19,486 Crores (2016-17)

2. Secondary and Higher Secondary Education (STD. IX to XII)

• Schemes: Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
• Expenditure : Rs. 16,089 Crores (2016-17)

3. Higher Education:

• 22 State Universities
• Maharashtra Public Universities Act, 2016
• Scheme : Rashtriya LJchchatar Shiksha Abhiyan (RUSA)

4. Others:

1. Inclusive Education
2. Girls Education
3. Adult Literacy
4. Tribal Education

Inclusive Education:
For Differently abled children

Girls Education:

• Free education till higher secondary level
• Free of cost S.T. bus service
• Bicycles to near living within 5 kms from schools.

Adult Literacy:

• ‘Each one Teach one’
• ‘Sakshar Bharat Abhiyan

Tribal Education:

• Residential Ashram Schools
• Hostel facility
• Free uniform, food, educational materials, etc.

→ Health Services:

• 1814 Primary health centres
• 360 Community health centres
• Health programme by Government of Maharashtra
• National Rural Health Mission (NRHM)
• National Urban Health Mission (NUHM) include programme like
  • Sanitation and Hygiene (common points in both NRHM and NUHM)
  • Nutrition (common points in both NRHM and NUHM)
  • Safe drinking water

3 Tier”Health Infrastructure:

1. Primary Tier
2. Secondary Tier
3. Tertiary Tier

Primary Tier

• Primary Health Centres
• Community Health Centres

Secondary Tier

• Sub-district hospitals
• District hospitals

Tertiary Tier

• Well Equipped Medical Colleges
• Super specialty hospitals

→ Tourism (Maharashtra Tourism Policy, 2016)

Objectives:

• to make Maharashtra a leading tourist destination by 2025.
• to attract investments of ? 30,000 Crore.
• to create additional jobs

Nodal Agency: → Maharashtra Tourism Development Corporation (MTDC)
“Mahabhraman” → (agro tourism, village tourism, food tourism, safaris, etc.)

→ Hospitality:

• Hotel Industry
• Transportation
• Event Management
• General Tourism
• Restaurants

Transportation

• Airlines
• Mumbai – Goa Cruiseship
• Fancier Trains (Deccan Odyssey)

→ Entertainment Industry:

• Largest number of films in world Generates
• Generates employment opportunities
• Koihapur – well known for regional films
• Mumbai – Popularly called as ‘Bollywood’.

→ Co-operative Movement in Maharashtra:
Objectives:

• To develop rural areas.
• To improve socio-economic conditions of under-privileged
• To develop agro-processing and agro marketing.
• To support sugar co-operatives, fisheries co-operative and dairy co-operatives.

Word Meaning:

revenue divisions – administrative division to collect government revenue and lower its expenses, geographical area – physical features of an area, urbanized – people staying in city or town, census – a survey of counting of population, literacy rate – percentage of population who can read and write, characterised – features, abundant- plenty, resources – stock of something, infrastructure – basic structure like buildings, roads, bridges, etc. destination – place to visit, allied – joined, declining – decreasing, trend – direction, average – mean, marginal – very small, excessive – more, degradation – low in quality, indebtness – to owe something, implement – to do it / to carry out, adverse – poor, inadequate – not sufficient, reasonable – low cost, electrification – use of electricity, assistance – to help, agro – agriculture based, awareness – to make understand/ to bring to notice, mass media – communication to people through TV, Radio, Newspaper, etc, potential – capable possibility, diversification – to change the line of business, amend – to make changes, liberalisation – removal of restrictions, opportunities – chances, motivation – willingness to do something, clearances – to clear/ to give pass away, consolidate – to combine, subsidies – grant/allowaness, retail banking – banking services provided to general /public, core – important/essential/significant, expand – to enlarge, rapid – fast, sustainable – to maintain, achievement – to do something successfully, energy conservation – preventing the waste of energy, integrated – linked together, subscriber – member, components – a part of something, stimulate – to encourage, backbone – to support, scenario – situation, priority – more important, compulsory – essential, universalization – through out, veterinary- study related to animal diseases and it treatments, autonomous – independent, privatization – transfer of public company to private ownership, globalization – all over the world, concession – discount, emphasizes – to give special attention, strengthen- to build up, sanitation – to provide clean drinking water and sewage disposal, hygiene – cleanliness, nutrition – obtaining necessary food for health, three tier – three level, comprehensive – inclusive, tertiary – service sector, abroad – foreign, agro tourism – agriculture based tourism, manifold – numbers /multiple, cruiseship – passenger ship used for travelling with amenities within it, impact – effect, underprivileged – needy, solidarity – mutual support, subsequently – afterward.

By going through these Maharashtra State Board Class 11 History Notes Chapter 1 First Farmers students can recall all the concepts quickly.

Maharashtra State Board Class 11 History Notes Chapter 1 First Farmers

River Valley Civilisations:
Homo habilis made the first stone tools. These tools were useful only for simple jobs like scraping meat from the hides of dead animals, breaking nuts, etc. The later species of mankind after Homo habilis were more advanced. It resulted into the rise of the ‘Neolithic Age’. After that, settled villages came into being. The archaeological evidence shows that systematic agriculture began some 12000-11000 years ago.

The progress in the techniques of systematic cultivation resulted in the rise of the most ancient river valley civilisations of the Neolithic age. The river valley civilisations grew in four regions of the world. Those regions were Mesopotamia, Egypt, Indian Subcontinent and China.

The Valley of Euphrates and Tigris – Mesopotamia: Mesopotamia is the Greek name of the region between the two rivers, Tigris and Euphrates. Mesos means the ‘middle one’. Potamos means ‘river’. The region between two rivers is ‘Mesopotamia’. The Mesolithic people began to stay in this region for longer times because of the availability of ample water.

Ancient Mesopotamia included modern Iraq, Syria as well as the western regions of Iran and south-eastern regions of Turkey. The camps of Mesolithic people developed into the first settled neolithic villages. These first villages are dated to 10000 years B.C.E.

The Valley of Nile – Egypt: Napoleon Bonaparte had taken along many scholars from various fields during his invasion of Egypt in 1798. They studied the ancient remains in Egypt and published it. These studies received a momentum because of the decipherment of the Rosetta inscriptions. The first neolithic villages in Egypt came into being at about 6000 B.C.E. The beginning of agriculture in Egypt coincides with the same time.

The Valley of the Huang He – China: The Valley of Huang He River is considered to be the region of origin of the Chinese culture. The Chinese culture evolved here. Agriculture in the neolithic villages of China began at about 7000 B.C.E. Wheat, foxtail millet and rice were grown by the farmers in these villages.

The Valleys of Sindhu (Indus) and Saraswati – Indian Subcontinent: The region of the valleys of Sindhu and Saraswati is now divided between India and Pakistan. The archaeological excavations at Harappa on the banks of Ravi in Punjab and Mohenjo Daro on the banks of Sindhu in Sindh indicate the existence of a fully developed civilisation in the Indian subcontinent which was dated to circa 3000 B.C.E.

It proves that there were well-settled villages in the Indian subcontinent as early as 8000 B.C.E. There is a general consensus among the scholars that the Harappan cities evolved from these early villages.

Beginning of Cultivation: Agricultural Production:
Beginning of cultivation is also the beginning of the neolithic age. It spans through 10000 – 8700 B.C.E. It may vary to some extent from place to place. This period marked the beginning of domestication of animals along with the beginning of cultivation.

Barley was the main crop in this period. Other crops were wheat and flaxseed. Thus, the technology evolved; the techniques of hunting and obtaining food improved; food became available in plenty.
This resulted in making the Mesolithic people stay at one place for a longer time of the year. This is how the villages were settled on a permanent basis.

First Farmers of India:
Neo means ‘new’ and lithic means ‘of stone neolithic’ age got its name because of the stone tools of completely new types. The site is of great importance among the neolithic villages in the Indian subcontinent established by the first farmers. The Mehrgarh farmers cultivated barley and wheat. There is another site of a neolithic village that is contemporary to Mehrgarh.

The site was found at ‘Lahuradeva’ in Sant Kabir Nagar district of Uttar Pradesh. In Maharashtra, the mesolithic man existed during 10000-4000 B.C.E. The Chalcolithic people were the first farmers of Maharashtra. Inamgaon, in the Shirur taluka of Pune district, is an important site of the village of Chalcolithic farmers in Maharashtra.

Agricultural Settlements:
A village with at least a population of 100 could meet the needs of individual members who would be completely dependent on agriculture and animal husbandry. Neolithic villages were small in size. Permanently occupied dwellings (mostly round huts) were characteristic of these villages.

Other than these dwellings, some places in the central part of the village were perhaps used as common storage places of food-grains and other things. This internal settlement pattern of the village indicates that the transactions related to food production were centrally controlled.

Trade and Transport:
The nomadic-semi nomadic groups of Mesolithic people had a system of barter among themselves. The wheel was not yet invented. It means that the means of mechanical transport were not available to them. The neolithic people invented the wheel and the technology they had developed so far, underwent a revolution. The neolithic people began to produce wheel-made pottery.

The wheel technology made it possible to produce pottery on a mass scale. The invention of the wheel also made it possible to obtain the raw material from distant places in much lesser time. It helped to develop trade and transport on a greater scale.

Beginning of Urbanisation:
After settling down at one place for a long time, a feeling of ownership arose among the Neolithic people. This feeling was focused on their individual dwellings and the piece of land cultivated by them. Eventually, the villages expanded. Along with it, awareness of collective landholdings and the village boundaries became prominent.

It gave rise to administrative centers. Such administrative centers attract a large population that includes officials, people from various occupations. As a result, the periphery of the original settlement kept expanding and cities came into being. Thus, began the process of urbanization in the Neolithic age.

Glossary:

→ Civilization – The process by which a society or place reaches an advanced stage of social and cultural development and organization.

→ Homo habilis – Extinct species, ancestor of modern human.

→Nomadic – Moving from one place to another rather than living in one place all of the time.

→ Pastoralism – Animal Husbandry.

→ Decipherment – To discover the meaning of.

→ Hieroglyphs – Pictorial script.

→ Archaeology – Study of ancient evidence of the past.

→ Excavation – To remove the earth from a place in order to find old objects buried there.

→ Monochrome – Single colour.

→ Burnished – Polished by rubbing with a wooden or stone tool.

→ Applique work – Pasting wet clay ribbons and making patterns on them.

By going through these Maharashtra State Board Class 12 History Notes Chapter 4 Colonialism and the Marathas students can recall all the concepts quickly.

Maharashtra State Board Class 12 History Notes Chapter 4 Colonialism and the Marathas

Chhatrapati Shivaji Maharaj was the only Indian ruler who had foreseen the ulterior motives of the Europeans and their ways of infiltration and put up a strong resistance against them. Portuguese, French, Dutch and the British all of them came to India as traders. However, they also grabbed political power. It is often said that they came to India with weighing scales but used swords and ultimately seized the Indian throne.

Portuguese and the Maratha Empire:

→ The Portuguese were the first to arrive in India.

→ Chhatrapati Shivaji Maharaj first came in contact with the Portuguese when he established control over Kalyan and Bhiwandi.

→ Both the Portuguese and the Marathas adopted policies to suit the situation in diplomatic matters.

→ Some important events:

• In 1665, the Portuguese waylaid 13 ships of the Marathas.
• In 1666, the fort of Fonda ruled by Adilshah was under siege by the Marathas.
• In 1667, Chhatrapati Shivaji Maharaj decided to attack the region of Bardesh.
• On 10th February 1670 a treaty was signed between the Marathas and the Portuguese,
• In 1680, the Fonda Fort was captured by the Marathas.
• In March 1773, the Maratha army conquered the Sashti island.

Dutch and the Maratha Empire:
The Dutch established a factory at Vengurla in 1649. Their trade flourished there. However, their trade was severely affected when Chhatrapati Shivaji Maharaj attacked Kudal. In 1665, the Mughal subedar of Surat asked for help for destroying the Maratha naval force. However, the Dutch offered ho help. Chhatrapati Shivaji Maharaj had allowed them to build a factory at Dabhol.

The political relations between the Dutch and the Marathas kept changing to suit the need of the time. The Marathas did not harm the Dutch factory at Surat. Also, during the Karnataka campaign, the Marathas ensured the safety of the Dutch factory and also issued them trading permits. For these favours the Dutch paid tributes to Chhatrapati Shivaji Maharaj. The Dutch factories at Porto Novo/Parangipettai and Tegnapattam/Devanapattinam were unharmed by Chhatrapati Shivaji Maharaj.

French and the Maratha Empire:

→ In 1667, the French established a factory at Rajapur.

→ In 1667, Francois Martin, the Governor-General of Pondicherry obtained permission for opening a factory.

British and the Maratha Empire:

→ Political relations between Chhatrapati Shivaji Maharaj and the British began due to the Afzal Khan episode.

→ Defeat of the British by the Marathas in the Rajapur campaign.

→ Henry Oxenden, a British agent obtained permission to open a British factory at Rajapur

→ An agreement was signed by the British and the Marathas on 12th June 1674.

→ The following were the terms and conditions of the agreement:

• Issuing permissions for the British to trade in Swarajya.
• To open factories in Rajapur, Dabhol, Chaul and Kalyan.
• Right of the Marathas to levy 2.5% octroi on British goods etc.

→  Raghoba’s appeal for help resulted in appointing a British envoy in the Peshwa court in Pune.

→  In 1765, the British took over the fort of Malvan.

→  Treaty of Wadgaon was signed between the British and the Marathas after the British army was defeated by the Marathas.

→ Treaty of Vasai was signed by the British and the Marathas which was not acceptable to Shinde and Holkar.

→  This resulted in the Anglo-Maratha War in 1803. The Marathas were defeated in this war.

→  The Third Anglo-Maratha War was fought in 1817. The Marathas were once again defeated and the Maratha rule ended in 1818.

→  Bajirao Peshwa was granted an annual pension by the British and he spent the rest of his life at Bithoor near Kanpur.

Siddis and the Maratha Empire:

→ Siddis arrived in the latter half of the 15th century from Abyssinia (Ethiopia).

→ Established themselves at Janjira.

→ Siddis were increasingly getting difficult and therefore, Chhatrapati Sambhaji Maharaj decided to curb their movements.

→ Due to repeated Mughal attacks, the Marathas could not pay much attention to other enemies.

→ During the times of Peshwa I (1733C.E.) the Marathas became active against Siddis. Chimajiappa declared war against the Siddis and won it.

→ A treaty was signed by the Marathas and Siddi.

→  The Siddis accepted a feudatory status under the Marathas.

Afghans and the Maratha Empire.

→ The year 1784 witnessed the first invasion of India by AhmadshahAbdali, the king of Afghans. He was defeated by Shahjad Ahmadshah, the elder son of the emperor at Sirhind.

→ In 1751, Abdali invaded India again.

→ In 1757, Abdali invaded India for the third time. Returned to Afghanistan after ransacking the region around Delhi and Mathura.

→ In 1759, Abdali marched back for the fourth time which resulted in the ‘Third Battle of Panipat’ on 14th January 1761 between the Marathas and Abdali.

→ The Maratha army was commanded by Sadashivraobhau and Vishwasrao Peshwa.

→ They confronted each other at Panipat on the banks of the river Yamuna.

→ Both Peshwas were killed.

→ Abdali and his successors returned home never to come back because of the fierce opposition from the Marathas.

→ The British established their supremacy in India once the Maratha rule declined in the 19th century.

Glossary

→ Chauthai – A type of revenue collected from the external territories protected by the Maratha rulers. It used to be one-fourth of the total income of the taxpayer.

→ Ammunition – A supply of bullets and shells.

→ Atrocities – An extremely wicked or cruel act.

→ Alliance – A union or association formed for mutual benefit, especially between countries or organisations.

→ Asylum – The protection granted by a state to someone who has left their home courftry as a political refugee.

→ Mercenary – A professional soldier hired to serve in a foreign army.

→ Emissary – A person sent by one government or political leader to another to take messages or to take part in discussions.

→ Surreptitiously – Secretively.

→ Sovereignty – The authority of a state to govern itself or another state.

→ Waylaid – To wait for and then stop someone, especially to attack that person.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 6 Index Numbers students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 6 Index Numbers

Definition:
Spiegel defines Index Number as, “statistical measures designed to show the changes in a variable or a group of related variables with respect to time, geographical location, other characteristics such as income, profession, etc. ”

Hence, Index Numbers are :

• These are specialized forms of averages.
• These measures the net changes in a group of related variables like price, quantity, cost of living, etc.
• These are expressed in percentage without using the percentage sign.
• These are also known as economic barometers.
• They always refer to two periods, i.e. base year and the current year.
• Price Index Number P₀₁ = \(\frac{p_{1}}{p_{0}}\) x 100

where P₀₁ = Price Index Number
p₁ = Price of the commodity in the current year.
p₀ = Price of the commodity in the base year.

Types of Index Numbers:

Significance or Uses of Index Numbers:

• They help in formulating economic and business policies.
• They help in the study of economic trends and tendencies.
• They are considered as economic barometers as they measure economic changes over period of time.
• They help in the measurement of Inflation.
• They help in presenting financial data in real terms.
• They help in determining depreciation cost.
• They help the government to adjust national income.

Steps Involved in Construction of Index Numbers:

• Purpose of Index Number
• Selection of the base year
• Selection of commodities
• Selection of prices
• Selection of suitable averages
• Selection of formula
• Assigning proper weights.

Limitations of Index Numbers:
Although index numbers are very useful to business and industry they suffer from following
limitations:

• Bias in the data
• Based on samples
• Misuse of index numbers
• Defects in the formulae
• Changes in the economy
• Neglecting Qualitative changes
• Arbitrary weights
• Limited scope

Because of all these limitations, sometimes economists do not get desired results.

Different Methods of Constructing Index Numbers:
Following chart helps us to know different methods of constructing Index Numbers:

Simple Index Number: It is constructed when all the items like food, clothing, transport, housing, etc. are given equal importance. There are three different methods of constructing it.

→ Price Index Number: It is constructed by using following formula: P_o1 = \(\frac{\Sigma p_{1}}{\Sigma p_{0}} \) × 100 where – p₀₁ Price Index
Σp₁ = Total of the current year prices of various commodities.
Σp₀ = Total of base year prices of various commodities.

→ Quantity Index Number (Q₀₁): It is calculated by using following formula :
Q₀₁ = \(\frac{\Sigma q_{1}}{\Sigma q_{0}}\) × 100
where, Σq₁ = Sum total of current year quantities of commodities.
Σq₀ = Sum total of base year quantities of commodities.

→ Value Index Number (V₀₁): It is calculated by using following formula :
V₀₁ = \(\frac{\Sigma p_{1} q_{1}}{\Sigma p_{0} q_{0}}\) × 100
where, Ep₁q₁ = Sum total of product of prices and quantities of current year.
Ep₀q_o= Sum total of product of prices and quantities of base year.

Weighted Index Number: Under this method physical quantities are used as weights. Therefore prices themselves are weighted by quantities. We can take either the base year quantities or current year quantities as weights or the average of the two.

These index numbers are simple aggregative type with the fundamental difference that weights are assigned to various items included in the index. There are various methods of constructing weighted index numbers such as :

1. Laspeyres Price Index Number
2. Paasche’s Price Index Number

Laspeyre’s Price Index Number: This method was derived by Laspeyre’s, a German economist in 1871. In this method, weight are determined by quantities in the base year. He used the following
formula: P₀₁ = \(\frac{\Sigma p_{1} q_{0}}{\Sigma p_{0} q_{0}}\) x 100

where P₀₁ = Price Index
p₀ = Price of the base year
p₀ = Price of the current year
q₀ = Quantities of the base year
Σp₁q₀= Add all the products of p₁ and q₀
Σp₀q₀= Add all the products of p₀ and q₀

Paasche’s Price Index Number: This method was derived by Paasche, a German economist in 1874. In this method weight of the current year are used as base year. He used the following
formula: P₀₁ =\( \) x 100

where P₀₁ = Price of the current year
p₀ = Price of the base year
p₁ = Price of the current year
q₁ = Quantities of the current year
Σp₁q₁ Add all the products of p₁ and q₁
Σp₀q₀= Add all the products of p₀ and q₁.

By going through these Maharashtra State Board Class 12 Economics Notes Chapter 10 Foreign Trade of India students can recall all the concepts quickly.

Maharashtra State Board Class 12 Economics Notes Chapter 10 Foreign Trade of India

Internal Trade:
It means exchange of goods and services within the country.

Foreign Trade:
It means exchange of goods and services between two or more countries. Foreign trade is the exchange of goods and services between two or more countries, Foreign trade is the trade across the boundaries of a country.

Definitions –
According to Wasserman and Hultman, “International Trade consists of transaction between residents of different countries.”

Types of Foreign Trade:

1. Import Trade
2. Export Trade
3. Entrepot Trade

→ Import Trade: It is buying of goods and services from other country by home country. Excessive import can have a negative impact on the home country. E.g. India buying petroleum from Iraq, Kuwait, etc.

→ Export Trade: It is selling of goods and services by home country to another country. Excessive export can have a positive impact on the home country. E.g. India exporting tea and spices to USA, China, etc.

→ Entrepot Trade: It means buying of goods and services from one country and then selling them to another country. E.g. England importing cotton from India making readymade garments from it and selling them to Malaysia.

Role / Need / Importance of Foreign Trade:

→ To earn foreign exchange: Foreign trade plays a very important role in earning foreign exchanges. This foreign exchange can be used to import advanced technology and machinery from developed countries.

→  Encourage investment: Foreign trade leads to an increase in total investment in an economy. The increase in investment helps to produce more goods and services for export.

→ Division of labour and specialization: It helps to increase the productivity of a firm or economy. Under specialization, specific work is given to the workers within a production process. E.g. some workers will design the cars, some workers will work on assembly line, some workers will work on testing cars, some workers will work on marketing of cars.

→ Optimum allocation and utilization of resources: Due to foreign trade, those goods are produced which have demand in international market. There is maximum allocation and utilisation of resources to produce more goods and services for export.

→ Stability in price level: Foreign trade helps to control the changes in price level by keeping demand and supply position stable.

→ Availability of multiple choices: Due to availability of imported goods, its help to improve standard of living of the people in the country.

→ Promotes economic development: The foreign trade plays a major role in increasing the national income, standard of living of the people, increased collaboration with foreign government or organisation, etc. which stimulates economic development.

→ Brings reputation and helps earn goodwill: Exporting country can earn reputation and goodwill in the international market through foreign trade. E.g. Japan in electronic goods – Panasonic, Canon, Sony, Hitachi, Germany in automobile – BMW, Audi, Mercedes-Benz, Volks Wagen, Porsche, USA in computers -Dell, HP, IBM, USA in food – Mcdonald, KFC.

→ Helpful during natural calamities: Foreign trade enables a country to import food grains and medicines from other countries to help the affected people during natural calamities.

→ Promotes World Peace: Foreign trade brings countries to closer, leading to world peace and integrity.

Features of Composition of India’s Foreign Trade:
There are many changes in India’s foreign trade from last seven decades (70 years)

→ Gross National Income: India’s foreign trade has great significance for its GNP. It increased up to 48.8% in the year 2016-17.

→ Change in composition of exports: After independence, there was change in the composition of India’s export trade from primary products to manufactured goods.

→ Change in composition of imports: After independence, there was change in the composition of India’s import trade from consumer goods to capital goods.

→ Development of new ports: India’s foreign trade is handled mainly by Mumbai, Calcutta and Chennai ports. India has developed more new ports at Kandla, Cochin, Vishakhapatnam, etc.

→ Oceanic Trade: Most of India’s foreign trade is by sea. About 68% of India’s trade is by sea.

→ Rise in volume and value of trade: After economic reforms (1990-91), the volume and value of India’s imports and export has increased.

Trends in India’s Export:
Engineering goods: Engineering goods includes transport equipment, automobiles and auto components, machinery and instruments. India’s top export item is engineering goods, accounting for 22.5 per cent in India’s total export in 2014-15 and this share has increased up to 25% in the year 2017-18. India is exporting engineering goods to Sri Lanka, UAE and USA.

→ Petroleum products: India’s refining capacity has increased significantly since 2001-02, due to which India turned a net exporter of petroleum refinery products. In the year 2013-14 the share of petroleum products in total export was 20.1% and in the year 2016-17, it declined upto 11.07%.

→ Chemicals and chemical products: It included drugs (medicines and pharmaceuticals). This is one sector where India is highly competitive on both quality and pricing factor. India became global hub for pharma production. India is exporting its chemical and chemical products to USA, China and Germany. The share of this item was 10.4% in 2014-15.

→ Gems and Jewellery: Gems and Jewellery plays an important role in earning the foreign exchange for India. In the year 2014-15 the share of Gems and Jewellery was 13.3% in India’s total export and it declined upto 5.32% in the year 2018-19.

→ Textiles and readymade garments: India’s readymade garments have huge demand in the international market. India is exporting textiles to USA, China and Bangladesh. India is exporting readymade garments to USA, UAE and UK. In the year 2014-15 India’s export of textile and garment was 11.3% of total export of India and it has declined up to 6.3% in the year 2016-17. ,

Trends in India’s Imports:
India is importing various goods from other countries. Following are the major imported goods of India.

→ Petroleum: It has largest share in India’s import. In the year 2016-17, it has 22.6% share in India’s total import.

→ Gold: After petroleum, the second most imported item is gold. In the year 2011, India’s import of gold was $53.9 billion and in the year 2018-19 it declined upto $32.8 billion.

→ Fertilizers: The share of fertilizers in import expenditure declined from 4.1% in 1990-91 to only 1.3% in 2016-17.

→ Iron and Steel: In the year 2016-17 the share of iron and steel in India’s total import was 2.1%.

Balance of Payments (BOP):

→ According to Ellsworth, “Balance of payments is a summary statement of all the transactions between the residents of one country and the rest of the world.”

→ According to Walter Krause, “The balance of payments of a country is a systematic record of all economic transactions completed between its residents and the rest of the world during a given period of time usually a concept of year. ”

Balance of Trade:

→ According to Bentham, “Balance of trade of a country is the relation over a period between the values of her exports and imports of physical goods.”

→ According to Samuelson, “It export value is greater than the import value, it is called as trade surplus and if import value is greater than export value, then it is called as trade deficit.”

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 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.

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).