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According to Maclver and Page “When the folkways have added to them conceptions of groups welfare, standards of right and wrong are converted into mores”.

Characteristics of Mores are:

1. More are the regulators of social life: Mores represent the living character of the group or community. They are always considered right by the people who share them. They are morally right and their violation morally wrong. Hence they are more compulsive in nature. They put restrictions on our behavior.

2. Mores are relatively more persistent: More are relatively long lasting than ordinary folkways. In fact, they even become conservative elements in society. They also put up resistance to change.

3. Mores vary from group to group or time to time: What is prescribed in one group is prohibited in another Eskimos for example- often practice female infanticide, whereas such a practice is strictly forbidden in the modern societies. Mores not only differ with culture but also with time. What is right at one time may be wrong at another and vice versa. Ex; the practice of “Sat” was “moral” then, but today it is illegal and immoral.

4. Mores are often backed by values and religion: More normally receive the sanction and backing of values and religion. When this occurs they become still more powerful and binding. Mores backed by religious sanctions are strongly justified people.

According to Maclver and Page “When the folkways have added to them conceptions of groups welfare, standards of right and wrong they are converted into mores”.

Characteristics of Mores are:

Mores are the regulators of social life: Mores represent the living character of the group or community. They are always considered right by the people who share them. They are morally right and their violation morally wrong. Hence they are more compulsive in nature. They put restrictions on our behavior.

Mores are relatively more persistent: More are relatively long lasting than ordinary folkways. In fact, they even become conservative elements in society. They also put up resistance to change.

Mores vary from group to group or time to time: What is prescribed in one group is prohibited in another Eskimos for example- often practice female infanticide, whereas such a practice is strictly forbidden in the modern societies. Mores not only differ with culture but also with time. What is right at one time may be wrong at another and vice versa. Ex:- the practice of “Sati” was “moral” then, but today it is illegal and immoral.

Mores are often backed by values and religion: More normally receive the sanction and backing of values and religion. When this occurs they become still more powerful and binding. Mores backed by religious sanctions are strongly justified people.

The concept of ‘primary groups’ is a significant of C.H. Cooley to the social thought. Building black of human societies throughout the world history.

Characteristics of primary groups.

(a) Dominance of primary or face-to-face relationships: Primary groups are characterized by close and intimate relationships. These exists a face-to-face relationship among the members. In primary groups everyone knows everyone else; one’s name and fame, one’s status, wealth, occupation, level of education etc.

(b) Small in size: Primary groups are generally small in size, because its consists of few members. Size of primary groups should be small if the relations among members are to be close personal and intimate.

(c) Physical Proximity or Nearness: Face-to-face relations can be found only when members reside in particular area more or less permanently. Seeing and talking with each other facilitates the exchange of ideas, opinions and sentiments.

(d) Durability of the groups: Primary groups are relatively a permanent groups. Other things equal, the longer the groups remains together, the more numerous and deeper are the contacts between its members.

(e) Similarity of Background: The members of the primary groups may have more or less the same background, these must be some approximations in their levels of experience. Each must have something to contribute to give as well as to take.

(f) Shared Interest: The shared interests of the groups also hold them together. Any interest becomes focused and enriched in the group process. Since all are working for a common cause each acquires stimulation and a heightening of the emotional significance of the interest.

Formal control refers to those types of social control which is deliberately created and which includes some fixed formal means and procedure for the maintenance of social control.

1. Mores are the regulators of social life 

2. Mores are relatively more persistent. 

3. Mores vary from group to group or time to time. 

4. Mores are often backed by values and religion.

1. Dominance of primary or face to face relationships 

2. Small in size 

3. Physical Proximity or Nearness 

4. Durability of the groups.

1. Social in Nature 

2. Unplanned Origin 

3. Informal Enforcement 

4. Folkways are Innumerable.

1. Dominance of Secondary Relations 

2. Large in size 

3. No physical basis 

4. Nature of Membership.

1. Lack of organization 

2. Spontaneous in origin 

3. Shorter life span 

4. Lack of organization in social interaction.

Mob, audience, spectators, group, public etc.

E.A. Ross. Written the book of social control.

E.A. Ross introduced the concept of social control.

Societies can be divided into pre-modem and modem societies. In the pre-modem societies

(1) Hunting and food gathering societies, characterized by small number of people gaining their livelihood from hunting, fishing and gathering of edible plants. There were few differences based on age and gender.

(2) Agrarians societies based on small rural communities without towns or cities. Lively hood gained through agriculture, often supplemented by hunting and gathering. It was ruled be a chief and inequalities existed among themselves.

(3) Pastoral Societies Size of this society ranges from few hundred people to many thousands depends on-the tending of domesticated animals for their subsistence. It is marked by distinct inequalities and ruled by a chief or warrior kings.

(4) Traditional societies: This kind of societies were existed from 6000 B.C to 19th century. These were relatively disappeared. Traditional societies were large in size some numbering millions of people though small compared with industrialized societies. Some cities exists in which trade and manufacturing are concentrated.

Societies in the modern world are divided into:

(1) The first world societies which existed since 18th century to the present. First world societies are based on industrial production and generally free enterprise. Majority of the people live in towns and cities, a few work in rural agricultural persists.

(2) Second world societies- These societies period of existence In early 20th century to the early 1990s. It is based on industry, but the economic system is centrally planned. Small proportion of the population work in agriculture, most live in towns and cities major class inequalities persists. Distinct political communities are Nations State. Until 1989, composed of the Soviet Union and Eastern Europe. But Social and Political changes began to transform them into free enterprise, economic system according to the model of first world’s societies.

(3) Developing societies These societies existed from 18th century to the present day. Majority of the population work in agriculture, using traditional methods of production. Some have free enterprise system while others are centrally planned distinct political communities are Notions State, including China, India, and most Africa and South American Nations come under this category.

(4) Newly Industrialized societies: These societies come into existence since 1970 onwards. Former developing societies now based on industrial production and generally free enterprises. Majority of the people live in towns and cities, a few work in agricultural pursuits. Major class inequalities found than the first world societies. Average per capital income considerably less than first world societies. The countries like Hong Kong, South, Korea, Singapore, Taiwan, Brazil, and Mexico etc.

The term society is the most fundamental concept in sociology. Sociology is established as a separate science to study human society scientifically. Human life and society are two faces of the same coin. Man cannot live alone. He everywhere in groups in society, society has became an essential condition for all round development of personality. Hence “ARISTOTLE” recognized that “man is a social animal” man has created his own society because of his intellectual capacity. Sociology only delay with human society.

Characteristics of society:-

(a) Society- The Group of Groups: People collects together to form groups. Such groups combine together to give rise to society, each society has family, neighbour, village, city, labor association, religious gathering, Political Parties etc. H.M.Johnson- Has thus remarked that “society is the group of groups”. But it is not just like a crowd. It is a system. It consists of innumerable groups which fulfill the various needs of the people.

(b) Society is a web of Social Relations: Social relation means - The reciprocal contact between two or more persons. Social relationships have a wide range, for example Teacher – student, parent-children, patient-doctor, husband-wife and so on. One individual enters into several social relationships at the same time. Maclver and Page- Point out that society exists only where social beings behave towards one another in ways determined by their recognisation of one another. Thus society is a web of social relations.

(c) Similarity or likeness: The principal of likeness is essential for society. It exists among the people have similarities with regards to their needs, work, aims, ideals, values and soon. These similarities inspire the people to interact and like each other and live together. Hence mutual intimacy, Co-operation, love and affection, sympathy, sacrifice and feeling of oneness among people develops. Similarly of the people of same nature and behavior live together in society.

(d) Differences in Society: Likeness and differences are two faces of the same coin. Therefore we see natural differences among people in their interest, ability, talent, attitude, intelligence and so on. Thus we find farmers, labours. Teachers, soldiers, business men, advocates, doctors, engineers and other working in different capacities, Maclver and page- Said that "Primary likeness and Secondary differences are the chief features of human society".

(e) Co-operation and Division of Labor: Human Society is essentially based on Co-operation and divisions of labour. Due to the feeling of Co-operation people share their joys and sorrows. The division of labor depends on peoples interest, ability, sex, and age etc. Due to division of labor in various fields task are performed more efficiently. In modem society, skilled and specialized persons have more importance, thus co-operative and division of labor are reciprocal.

(f) Interdependence: Interdependence is another characteristic of society. An individual seeks the satisfaction of his wants and the fulfillment of his goals with the co-operation of others. For example Family is a primary institution is based on interdependence of members, with the growth of civilization and industrialization the need of interdependence has increased. Today not only individuals are interdependent but even communities are also interdependent.

(g) Society is Dynamic: Society keeps on changing forever. No society can ever remain constant for a long period. New associations, institutions and groups may come into being and old ones may die a natural death. Changes may take place slowly or suddenly at a rapid pace. For example-in the rural society changes may occur at a slower pace, where as in an urban society changes will occur at a faster pace.

Characteristics of society.

(a) Society- The Group of Groups:

People collect together to form groups. Such groups combine together to give rise to society. Each society has family, neighbor, village, city, labor association, religious gathering, Political Parties etc, H.M.Johnson has thus remarked that “society is the group of groups”, but it is not just like a crowd. It is a system. It consists of innumerable groups which fulfill the various needs of the people.

(b) Society is a web of Social Relations: 

Social relation means- The reciprocal contact between two or more persons. Social relationships have a wide range. For example Teacher-student, Parent-children, patient-doctor, husband-wife and so on. One individual enters into several social relationships at the same time. Maclver and Page-Point out that society exists only where social beings behave towards one another in ways determined by their recognisation of one another. Thus society is a web of social relations.

(c) Similarity or likeness: The principal of ‘likeness’ is essential for society. It exists among the people who have similarities with regards to their needs, work, aims, ideals, values and so on. these similarities inspire the people to interact and like each other and live together. Hence mutual intimacy, Co-operation, love and affection, Sympathy, sacrifice and feeling of oneness among people develop. Similarly the people of same nature and behavior live together in society.

(d) Differences in Society: Likeness and differences are two faces of the same coin. Therefore we see natural differences among people in their interest, ability, talent, attitude, intelligence and so on. Thus we find farmers, labors. Teachers, soldiers, businessmen, advocates, doctors, engineers and other working in different capacities, Maclver and page - Said that "Primary likeness and Secondary differences are the chief features of human society".

(e) Co-operation and Division of Labor: Human Society is essentially based on co-operation and division of labour. Due to the feeling of co-operation people share their joys and Sorrows. The division of labour depends on people’s interest, ability, sex, and age etc. Due to division of labor in various fields task are performed more efficiently. In modem society, skilled and specialized persons have more importance. Thus co-operative and division of labor are reciprocal.

Size of this society ranges from few hundred people to many thousand depends on the tending of domesticated animals for their subsistence.

It is a long term foreign loan with low rate of interest.

It is a short term foreign loan with high rate of interest.

Trade balance signifies the difference between the value of imports and exports of goods, that is, visible items only.

The long-term foreign loans with low rate of interest are called as soft-loans. On the other hand, the short-term foreign loans with’ high rate of interest are called as hard- loans.

Saving is the difference between income and consumption. In the words of Keynes, “Saving is the excess of income overconsumption.” In other words,

Saving = Income – Consumption
Average Propensity to Save (A.P.S.): A.P.S. is the ratio of saving to income. In other words,

A.P.C =  \(\frac{Saving }{ Income }\)

Marginal Propensity to Save (M.P.S.): M.P.S. is defined as the ratio of change in saving to change in income. In other words,

M.P.S =  \(\frac{Change\, in \,Saving }{ Change \,in\, Income}\)  or \(\frac{ΔS}{ΔY}\)

“Companionship or friendship”.

It refers to the social nature of man, companionship thus means sociability.

These societies existed from 18th century to the present day.

America comes under new industrialized country.

Factor income is the income received by the different factors of production for their services in the production process.

A normal resident of a country is defined as a person or institution who normally resides in a country and whose centre of interest lies in that country.

Investment, in economics, signifies nothing but addition to capital. It is defined as the surplus of total production over total consumption. Investment is necessary for increasing the production capacity in the economy. According to Mrs. Joan Robinson, “By investment is meant an addition to capital, such as occurs when a new house is built or a new factory is built. Investment means making an addition to the stock of goods in existence.”

Determinants of Investment: Investment primarily depends upon two factors :

1. Expected rate of profitability or Marginal Efficiency of Capital (M.E.C.),
2. Rate of Interest or Cost of Investment.

A rational businessman will invest only if M.E.C. is more than the rate of interest. On the contrary, if the rate of interest seems to be greater than M.E.C., then there will be no inducement to invest.

Disguised employment is that situation when more number of labourers are engaged in a work than actually required for it. It means there are some extra or excess workers engaged in that work. This can be explained with the help of an example. Suppose any family has a farm of 3 acres. Three members of that family can work efficiently in this farm with the existing methods of cultivation. But if that family has 6 “members and due to the shortage of employment opportunities in other fields, all of the 6 workers are employed in that farm, then it will be said that out of these 6 the 3 workers are actually disguisedly unemployed.

The domestic territory of the country does not necessarily mean the political limit but we include the following in it:

1. The area and water which come within the national limit.
2. Country’s embassies, military stations, consultancy offices in other countries.
3. The airplanes and ships working in other countries.
4. Fishing vessels, oil and natural gas rigs, and floating platforms operated by the residents of the country in the international waters.

• Gross National Product is the total market value of all the final goods and services produced in a nation in one year.
• Net National Product means total of market value of net final goods and services produced in a nation in one year.
• Net National Product = Gross National Product – Depreciation of Capital.

In economic term that part of income by which more production is possible than before, is called capital formation. In other words, an addition to capital stock is called capital formation.

Gross capital formation: Gross capital formation signifies gross investment which includes within itself net investment and depreciation.

Net capital formation. Net capital formation signifies nothing but net investment.

Net capital formation = Gross capital formation – Depreciation

As a matter of fact, capital formation means increase in net investment.

Average propensity to save is the ratio of saving to income. In other words,

A.P.S =  \(\frac{Saving }{ Income}\) 

Gross investment is the total production of capital goods in a year. This includes

1. Net investment and
2. Replacement investment. Replacement investment is that portion of gross investment that serves to replace the used up or worn out capital investment. It refers to the expenditure by the producers on account of depreciation of the fixed capital assets. Thus,

Gross Investment = Net Investment + Replacement Investment.

Net investment is the investment that results in an increase in capital stock. In other words, it is the investment over and above the replacement investment during a given period of time. Thus,

Net Investment = Gross Investment – Replacement Investment.

Induced investment is that which depends upon the level of income and profit.

Replacement investment is that portion of gross investment that serves to replace the used up or worn out capital investment.

Autonomous investment is independent of the change in level of income and profit.

1. True

2. False

3. True

4. True

5. True

Each bank has to keep a certain fixed proportion of its total deposits with itself. This ratio is called as liquidity ratio.

Correct option is (b) Three

Price stability.

A person is said to be disguisedly unemployed if his contribution in the total product is almost zero or negligible. This type of unemployment is normally found in most of the agricultural dominated under-developed countries of the world.

Unfavourable balance of payments means that the total value of imports of visible as well as invisible items is greater than the total value of exports of visible as well as invisible items.

It is an addition to capital stock.

The account of receipts and payments of the government of one country from other countries during a period of one year is called balance of payments.

According to Kindleberger, “Balance of payments is a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries during a given period of time.”

Main Items of Balance of Payments: The main items of balance of payments can be divided into two categories :

1. Items of current account: The main items of current account are :
   (a) The import and export of visible items like machinery, tea, tobacco, etc. The difference between such exports and imports is known as trade balance.
   (b) The import and export of invisible items like services of insurance companies, banks, doctors, engineers, government transactions, donations, tourism and shipping, etc.
2. Items of capital account: The capital account is made up of such terms as the inward and outward flow of money for investment and international grants and loans.

By monetary policy we mean a conscious action undertaken by the Central Bank of the country to change the quality, availability or cost (rate of interest) of money to achieve the various specified economic objectives.

Methods of Monetary Policy: The different methods of monetary policy, also known as instruments of credit control, are as follows :

• Bank Rate
• Open Market Operations
• Changes in Minimum Cash Reserve Ratio
• Change in Liquidity Ratio
• Change in the Margin Requirements of Loan.

The govt, can control the problems of inflation and depression through making suitable changes in these instruments of monetary policy.

1. Foreign loans and
2. Foreign grants.

In economics, the term ‘foreign aid’ is interpreted in a wider sense. By foreign aid, we mean foreign capital, foreign loans and foreign grants. In other words, the inflow of external assistance in the form of foreign capital, loans and grants by the foreign governments, private individuals, business organizations, foreign banks, international institutions, is termed as foreign aid.

Types of Foreign Aid-The main kinds of foreign aid are as follows :

1. Foreign Capital
2. Foreign Loans
3. Foreign Grants

Foreign loans.

Foreign collaboration is one of the forms of foreign capital. Under foreign collaboration, joint ventures are set up by the foreign and the domestic entrepreneurs.