Q GDP is the total value of _________ produced during a particular year.

  • (a) all goods and services
  • (b) all final goods and services
  • (c) all intermediate goods and services
  • (d) all intermediate and final goods and services

Ans (b) all final goods and services

economicactivities

The above image shows which sector of economic activities?

  • (a) Tertiary sector
  • (b) Primary sector
  • (c) Joint sector
  • (d) Secondary sector

Ans (b) Primary sector

Q Find the odd one out and explain why:

  • (i) Tourist guide, dhobi, tailor, potter.
  • (ii) Teacher, doctor, vegetable vendor, lawyer.
  • (iii) Postman, cobbler, soldier, police constable.
  • (iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio.
  • Ans (i) Potter because rest of them are in tertiary sector while potter is in secondary sector.
  • (ii) Vegetable vendor because rest of the occupations require specialised knowledge while vegetable vendor is an occupation that does not require any specific knowledge.
  • (iii) Cobbler because rest of them are in organised sector while cobbler is in unorganised sector.
  • (iv) Jet Airways because rest of them are in public sector while Jet Airways is in private sector.

Q Discuss and fill the following table giving one example each from your area.

Ans 

Sector Well Managed Organisation Badly Managed Organisation
(i) Public Sector Delhi Metro Rail Corporation Indian Railway
(ii) Private Sector Reliance Jio RCOM

Q Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

Ans Yes, the classification of activities into the primary, secondary and tertiary is very useful because the nature of activities are different and their implications and the nature of factors influencing them are also different. This classification helps the government to understand the problems of each sector in a better way and develop various policies accordingly for better development and generation of employment in the economy.

Q “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

Ans No, I do not agree with the statement. Since independence tertiary sector has been playing a significant role in Indian economy. Over the forty years between 1971-72 and 2011-12, the tertiary sector has emerged as the largest producing sector in India replacing the primary sector in terms of contribution towards national income. Further, the tertiary sector has expanded several basic services such as hospitals, educational institutions, defence, police stations, banks, insurance companies, post and telegraph services, judiciary, municipal corporations, transport, etc. in the country. It has supported the primary and secondary sectors in terms of trade, storage, transport etc. Moreover, it is providing employment to more than 25 percent of the Indian workforce.

Q What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Ans The disguised unemployment is a situation in which a person seems to be fully employed but his presence or absence neither increases nor decreases the production respectively. It means he works less than his full potential. For example, in urban areas we can see many small shops which can be operated by maximum two male members but all the members of the family are working on it. So the excess male members are disguisedly unemployed. Similar example can be found in rural areas where we can find many agriculture farms which can be operated by maximum two male members but all the male members of that family which are more than two may be working. So the excess male members are disguisedly unemployed.

Q Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

OR

‘‘Workers are exploited in unorganised sector in India.’’ Support the statement with suitable examples.

Ans I do agree with the statement. The unorganised sector is characterised by small and scattered units which are not under the effective control of the government. Though government has framed rules and regulations for the units in this sector but they are not followed. In this sector, jobs are low-paid and often irregular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is also not secure and it depends on the whims of the employer. When there is less work or employer wants, people can be asked to leave without any reason. These uncertainties became causes of exploitation of labour in unorganised sector.

Q Give a few examples of public sector activities and explain why the government has taken them up.

OR

How far is it correct to say that several services which cannot be provided by private sector but can be provided by the public sector? Explain.

  • Ans 1. Public Distribution System: Public distribution system is managed by the government so that the poor people can get necessary commodities like wheat, rice, oil and sugar at cheaper rates. This will help them to gain and maintain energy so that they may make efforts to increase their productivity.
  • 2. Hospitals: Government operates hospitals which provide every kind of medical facilities at subsidised rates. This service is very helpful for masses who do not have access to costly medical services provided by the private sector. So these hospitals prove to be a lifeline for the poor people.
  • 3. Education: Government operates many schools and colleges or provides aid to many institutions providing education. This education is available at very subsidised rates which has helped to raise the educational level of the country.

Q The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.

Ans The unorganised sector is characterised by small and scattered units which are not under the effective control of the government. Though government has framed rules and regulations for the units in this sector but they are not followed. In this sector jobs are low-paid and often irregular. There is no provision for overtime, paid leaves, holidays, leave due to sickness etc. Employment is also not secure and it depends on the whims of the employer. When there is less work or employer wants, people can be asked to leave without any reason. These uncertainties become causes of exploitation of labour in unorganised sector. Working conditions are also not very conductive in this sector. For example, we can see that many mechanics of various machines like automobiles or refrigerators are working in unhygienic conditions which may be hazardous for their health. So, it becomes very important for the government to frame policies for the protection of workers in unorganised sector.

Q Explain how public sector contributes to the economic development of a nation.

Ans Following are the ways in which the public sector contributes to the development of a nation:

  • 1. The public sector is responsible for developing basic infrastructure which helps in development of all the sectors of the economy. Hence, the public sector undertakes generation of electricity, construction of roads, bridges, railways, harbours and providing irrigation through dams etc. The expenditure incurred on developing such facilities is tremendous which may not be possible for private sector.
  • 2. The government supports the provision of various services to the general public in the form of subsidies. For example, for the availability of fertilisers to farmers at lower prices, the government provides production subsidy to fertiliser companies. Similar examples are cooking gas, diesel, electricity etc.
  • 3. The government provides support to farmers by helping them in the form of procurement of farm products like wheat, rice and pulses from them. Such products are then made available to people through ration shops.
  • 4. The government provides various such other services like medical care, education, drinking water, sanitation, housing facilities to poor and other administrative services for the proper running of the country etc.
  • 5. The public sector generates many employment opportunities.

Q Make a long list of all kinds of work that you find adults around you doing for a living. In what way you can classify them? Explain your choice.

Ans Following is the list of various works which the adults do around us and these can be classified on the basis of the nature of the activity whether it is related with the natural resources, or conversion of natural resources into some manufactured goods or it is merely related with provision of some service:

Type of Activity/Doer Sector
1. Teaching Tertiary
2. Banking Tertiary
3. Trading of daily needs items /shopkeeper Tertiary
4. Cloth weaving Secondary
5. Bakery Secondary
6. Doctor Tertiary
7. Poultry Primary
8. Agriculture Primary
9. Electrician Tertiary
10. Vegetable vendor Tertiary

Q How is the tertiary sector different from other sectors? Illustrate with a few examples.

Ans The two other sectors i.e., primary and secondary sectors produce tangible goods while the tertiary sector produce services which are intangible. The expansion of primary and secondary sectors has been made possible with the help of tertiary sector. For example, all the goods produced by the primary and secondary sectors are moved from one place to another place by tertiary sector, i.e., transportation. Similarly various other services like banking, warehousing, communication etc. are the services provided by the tertiary sector which are very important for the development of both the sectors.

Q Service sector in India employs two different kinds of people. Who are these?

Ans Service sector in India employs different kinds of people. On one hand, there are number of services that require highly skilled and educated workers like doctors, engineers, lawyers, architects, teachers etc. On the other hand, there are very large number of services which require very low level of skill and education like services of small shopkeepers, transport persons, painters, street vendors and hawkers, repair persons, etc. Hence, the service sector in India employs very skilled and educated workers on the one hand and very low skilled and uneducated workers on the other hand.

Q The following table gives the GDP in Rupees (Crores) by the three sectors:

Year Primary
(₹)
Secondary
(₹)
Tertiary
(₹)
1950 80,000 19,000 39,000
2011 8,65,000 13,70,000 30,10,000

(i) Calculate the share of the three sectors in GDP for 1950 and 2011.

(ii) Show the data as a bar diagram.

(iii) What conclusions can we draw from the bar graph?

GDP

(iii) We can conclude by observing the data that the share of primary sector which was 57.97 percent in 1950 reduced to only 16.49 percent while the share of tertiary sector increased to 57.39 percent in 2011 from 28.26 percent in 1950. This reflects the increasing importance of tertiary sector in the economy.

Q For each of the sectors that we came across in this chapter focus on employment and GDP ? Could there be other issues which should be examined? Discuss.

Ans GDP and employment are the two most important problems of an economy as rest of the problems are associated with these two problems. Rather it should be said that all other economic problems like inflation, operation of business cycles, rise in population, problem of development etc. result into the decline in both GDP and employment. For example, when the population increases without the corresponding increase in GDP, the per capita income starts falling and unemployment starts increasing. If development does not take place in the economy, it results into lower GDP and higher unemployment. Hence these two issues become important while rest of the problems result into the fall out over these two issues.

Q A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in year (1997-1998) was ₹ 60,000 million. Out of this ₹32,000 million was generated in the organised sector. Present this data in a table. What kind of ways should be thought of for generating more employment in the city?

Ans The above mentioned information can be presented in the following ways:

Organised Sector Unorganised Sector Total
No. of workers 4,00,000 11,00,000 15,00,000
Total income ₹ (million) 32,000 28,000 60,000

Q How are the activities in the economy classified on the basis of employment conditions?

Ans On the basis of employment conditions, activities may be classified into organised and unorganised sector. They are as follows:

  • 1. Organised Sector: Organised sector includes those organisations where the terms of employment are certain and people have regular and assured work. These organisations are registered by the government and have to follow rules and regulations framed by it such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.
  • 2. Unorganised Sector: The unorganised sector includes those organisations or works where the terms of employment are not certain and people do not have regular and assured work. This sector is characterised by small and scattered units which are not registered by the government and do not follow its rules and regulations.