Class - X
Economics
Chapter - 2
The Sectors of Indian Economy
NCERT Solutions
Q.1. Fill in the blanks using the correct option given in the
bracket:
(i) Employment in the
service sector _________ increased to the same extent as production. (has / has
not)
(ii) Workers in the
_________ sector do not produce goods. (tertiary / agricultural)
(iii) Most of the
workers in the _________ sector enjoy job security. (organized / unorganized)
(iv) A _________
proportion of labourers in India are working in the unorganized sector. (large
/ small)
(v) Cotton is a
_________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in
primary, secondary and tertiary sectors are _________. (independent
/interdependent)
Answer : (i) has not (ii)
tertiary (iii) organized (iv) large
(v) natural, manufactured (vi) interdependent
Q.2. Choose the most appropriate answer.
(a) The sectors are
classified into public and private sector on the basis of:
(i) employment
conditions
(ii) the nature of
economic activity
(iii) ownership of
enterprises
(iv) number of workers
employed in the enterprise
► (iii) ownership of enterprises
(b) Production of a
commodity, mostly through the natural process, is an activity in ______________
sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology
► (i) primary
(c) GDP is the total
value of _____________ produced during a particular year.
(i) all goods and
services
(ii) all final goods
and services
(iii) all intermediate
goods and services
(iv) all intermediate
and final goods and services
► (ii) all final goods and services
(d) In terms of GDP
the share of tertiary sector in 2003 is _________
(i) between 20 per
cent to 30 per cent
(ii) between 30 per
cent to 40 per cent
(iii) between 50 per
cent to 60 per cent
(iv) 70 per cent
► (iii) between 50 per cent to 60 per
cent
Q.3. Match the following:
Problems faced by
farming sector
Some possible measures
Answer : Problems
faced by farming sector, some possible measures:
1. Unirrigated land (d) Construction of canals by the government
2. Low prices for crops (c) Procurement of food grains by government
3. Debt burden (e) Banks
to provide credit with low interest
4. No job in the off season (a) Setting
up agro-based mills
5. Compelled to sell their grains
to the local traders soon after
harvest (b) Cooperative marketing societies
Q.4. Find the odd one out and say 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, SAHARA Airlines, All India Radio
Answer :
(i) Tourist guide
He is appointed by the
government, while dhobi, tailor and potter belong to the private sector.
(ii) Vegetable vendor
His is the only
profession that does not require a formal education.
(iii) Cobbler
The rest are workers
in the public sector, while his profession is part of the private sector.
(iv) SAHARA Airlines
It is a private
enterprise, while the rest are government undertakings.
Q.5. A research
scholar looked at the working people in the city of Surat and found the
following.
Place of work
Nature of employment
Percentage of working
people
In offices and
factories registered with the government
Organized
15 Own shops, office,
clinics in marketplaces with formal license
-
15
People working on the
street, construction workers, domestic workers
-
20
Working in small
workshops usually not registered with the government
-
-
Complete the table.
What is the percentage of workers in the unorganised sector in this city?
Answer
Place of work
Nature of employment
Percentage of working
people
In offices and
factories registered with the government
Organised
15
Own shops, office,
clinics in market places with formal license
Organised
15
People working on the
street, construction workers, domestic workers
Unorganised
20
Working in small
workshops usually not registered with the government
Unorganised
50
The percentage of
workers in the unorganised sector in this city is 70%.
6. Do you think the classification of economic activities
into primary, secondary and tertiary is useful? Explain how.
Answer :
The classification of
economic activities into primary, tertiary and secondary is useful on account
of the information it provides on how and where the people of a country are
employed. also this helps in ascertaining as to which sector of economic activity
contributes more or less to the country’s GDP and per capita income.
If the tertiary sector
is developing much faster than the primary sector, then it implies that
agriculture is depleting, and the government must take measures to rectify
this. The knowledge that the agricultural profession is becoming unpopular or
regressive can only come if we know which sector it belongs to. Hence it is
necessary to classify economic activities into these there sectors for smooth
economic administration and development.
7. For each of the sectors that we came across in this
chapter why should one focus on employment and GDP? Could there be other issues
which should be examined? Discuss.
Answer :
For each of the
sectors that we came across in this chapter, one should focus on employment and
GDP because these determine the size of a country's economy. A focus on
employment and GDP helps determine two important things- per capita income and
productivity. Hence, in each of the three sectors, employment rate and status
as well as its contribution to the GDP help us understand how that particular
sector is functioning and what needs to be done to initiate further growth in
it.
Yes, the other issues
which should be examined are -
→ Balanced regional
development
→ Equality in income
and wealth among the people of the country.
→ How to eradicate
poverty
→ Modernization of
technology
→ Self-reliance of the
country
→ How to achieve
surplus food production in the country.
9. How is the tertiary sector different from other sectors?
Illustrate with a few examples.
Answer :
The tertiary sector
different from other two sectors. This is because other two sectors produce
goods but, this sector does not produce goods by itself. But the activities
under this sector help in the development of the primary and secondary sectors.
These activities are an aid or support for the production process. For example,
transport, communication, storage, banking, insurance, trade activities etc.
For this reason this sector is also known as service sector.
10. What do you understand by disguised unemployment? Explain
with an example each from the urban and rural areas.
Answer :
Disguised Unemployment
is a kind of unemployment in which there are people who are visibly employed
but are actually unemployed. This situation is also known as Hidden
Unemployment. In such a situation more people are engaged in a work than
required.
For example:
→ In rural areas, this
type of unemployment is generally found in agricultural sector like - in a
family of 9 people all are engaged in the same agricultural plot. But if 4
people are withdrawn from it there will be no reduction in output. So, these 4
people are actually disguisedly employed.
→ In urban areas, this
type of unemployment can be seen mostly in service sectors such as in a family
all members are engaged in one petty shop or a small business which can be
managed by less number of persons.
11. Distinguish between open unemployment and disguised
unemployment.
Answer :
Open Unemployment
Disguised unemployment
When a country’s labour
force do not get opportunities for adequate employment, this situation is
called open unemployment. This is a kind of unemployment in which there are
people who are visibly employed but actually they don’t have full employment.
In such a situation more people are engaged in a work than required.
This type of
unemployment is generally found in the industrial sector of our country. This
is also found among the landless agricultural labourers in rural areas. This
type of unemployment is generally found in unorganized sector where either work
is not constantly available or too many people are employed for the same work that
does not require so many hands.
Page No: 37
12. "Tertiary sector is not playing any significant role
in the development of Indian economy." Do you agree? Give reasons in
support of your answer.
Answer :
No, I do not agree
with the statement that tertiary sector is not playing any significant role in
the development of Indian economy. The tertiary sector has contributed vastly
to the Indian economy, especially in the last two decades. In the last decade,
the field of information technology has grown, and consequently, the GDP share
of the tertiary sector has grown from around 40% in 1973 to more than 50% in
2003.
13. Service sector in India employs two different kinds of
people. Who are these?
Answer :
The service sector in
India employs the following two different kinds of people. They are:
→ The people involved
in the services that may directly help in the production of goods. For example,
people involved in the transportation, storage, communication, finance etc.
→ The people involved
in such services that may not directly help in the production of goods e.g.
teachers, doctors, barbers, cobblers lawyers etc. They may be termed as
ancillary workers means those who give services to the primary service
providers.
14. Workers are exploited in the unorganized sector. Do you
agree with this view? Give reasons in support of your answer.
Answer :
Yes, workers are
exploited in the unorganized sector. This would be clear from the following
points:
→ There is no fixed
number of working hours. The workers normally work 10 - 12 hours without paid
overtime.
→ They do not get
other allowances apart from the daily wages.
→ Government rules and
regulations to protect the labourers are not followed there.
→ There is no job
security.
→ Jobs are low paid
the workers in this sector are generally illiterate, ignorant and unorganized.
So they are not in a position to bargain or secure good wages.
→ Being very poor they
are always heavily in debt. So, they can be easily made to accept lower wages.
15. How are the activities in the economy classified on the
basis of employment conditions?
Answer :
On the basis of
employment conditions, the activities in the economy are classified into
organized and unorganized sectors.
→ Organized Sector
This sector covers those enterprises which are registered by the government and
have to follow its rules and regulations. For example, Reliance Industries
Ltd., GAIL etc.
→ Unorganized Sector
It includes those small and scattered units which are largely outside the
control of the government. Though there are rules and regulations but these are
never followed here. For example, casual workers in construction, shops etc. In
this sector there is no job security and the conditions of employment are also
very tough.
16. Compare the employment conditions prevailing in the
organised and unorganised sectors.
Answer :
The employment
conditions prevailing in the organised and unorganised sectors are vastly
different. The organised sector has companies registered with the government
and hence, it offers job security, paid holidays, pensions, health and other
benefits, fixed working hours and extra pay for overtime work. On the other
hand, the unorganised sector is a host of opposites. There is no job security,
no paid holidays or pensions on retirement, no benefits of provident fund or
health insurance, unfixed working hours and no guarantee of safe work
environment.
17. Explain the objective of implementing the NREGA 2005.
Answer :
The objective of
implementing the NREGA 2005 are:
→ To increase the
income and employment of people.
→ Every state/region
can develop tourism, regional craft, IT etc. for additional employment.
→ The central
government made a law implementing the right to work in 200 districts.
→ NREGA aims to
provide employment of 100 days. If it fails to do so, it will give unemployment
allowances to the people.
19. Discuss and fill the following table giving one example
each from your area.
Well-managed organisation Badly-managed
organisation
Public sector
Private sector
Answer :
Well-managed
organisation
Badly-managed
organisation
Public sector
Delhi Metro Rail
Corporation
Air India
Private sector
Reliance Mobile
Satyam
20. Give a few examples of public sector activities and
explain why the government has taken them up.
Answer :
A few examples of
public sector activities are provision of water, electricity and some modes of
transport. The government has taken these up because water and power are needed
by everyone. If the work of providing electricity and water is left to private
enterprises, the latter might exploit this opportunity and sell these at rates
which the masses cannot afford. Hence, to ensure that basic amenities like
water and power are available for all, the government supplies these at low and
affordable rates.
21. Explain how public sector contributes to the economic
development of a nation.
Answer :
In the following ways
Public sector contributes to the economic development of a nation:
→ It promotes rapid
economic development through creation and expansion of infrastructure.
→ It creates
employment opportunities.
→ It generates
financial resources for development.
→ It is ensuring
equality of income, wealth and thus, a balanced regional development.
→ It encourages
development of small, medium and cottage industries.
→ It ensures easy
availability of goods at moderate rates.
→ Contributes to
community development i.e. to the Human Development Index (HDI) via health and
educational services.
22. The workers in the
unorganised sector need protection on the following issues: wages, safety and
health. Explain with examples.
Answer :
The workers in the unorganised
sector need protection:→ Wages: Labourers who are employed as repair person,
vendor etc. do not have fixed income. They nearly manage to earn their living.
They are not employed all through the year.
→ Safety: Workers in
unorganized sector are not provided with safe drinking water or clean
environment. Eg., Working in mining, chemical industries is hazardous.
→ Health: Leave not
granted in case of sickness. Medical facilities are not offered, Eg.,
Construction workers.
23. 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 this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000
million was generated in the organised sector. Present this data as a table.
What kind of ways should be thought of for generating more employment in the
city?
Answer :
Organised Sector
Unorganised Sector
Total
No. of workers
4,00,000
11,00,000
15,00,000
Income (Rs)
32,000 million
28,000 million
60,000 million It is
clear that while a larger portion of workers is working in the unorganized
sector, the per capita earning of those in the organized sector is more. The
government should encourage the entrepreneurs in the unorganized sector to
change them into the organized sector. Moreover, government should introduce
some incentives so that more industries could be opened up in the organized
sector.
24. The following table gives the GDP in Rupees (Crores) by
the three sectors:
Year primary secondary tertiary
1950 80,000 19,000 39,000
2000 3,14,000 2,80,000 5,55,000
(i) Calculate the share of the three sectors in GDP for 1950
and 2000.
(ii) Show the data as a bar diagram similar to Graph 2 in the
chapter.
(iii) What conclusions can we draw from the bar graph?
Answer:
(i) In 1950,
primary sector =
57.97%, secondary sector = 13.77%, tertiary sector = 28.26%
In 2000,
primary sector =
27.33%, secondary sector = 24.37%, tertiary sector = 48.30%
(iii) We can draw the
conclusion that the share of the tertiary sector in the GDP has almost doubled,
while that of the primary sector has almost halved. The secondary sector has
grown by about 10% in the last five years.fgt
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