X_Eco_Ch-2_Sectors of Indian Economy_ Practice Set 1

Class - X
Economics
Chapter - 2
The Sectors of Indian Economy
Extra Questions

Q.1. Why is the primary sector called as such?

Ans. The primary sector is called as such because it produces goods exploiting natural recourses. Also, the product produced in this sector is a natural product. Some of the activities of this sector are agriculture, dairy, fishing and forestry.

Q.2. Mention a few activities under the secondary and tertiary sectors.

Ans. Some of the activities of the secondary sector are textile factories, sugar mills, brick kilns, industries manufacturing automobiles, electronics and electrical goods, and construction companies. Since this sector is associated with different kinds of industries it is also called the industrial sector.

Some activities of the tertiary sector are transport, storage, communication, banking, and trade. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

Q.3. What are  ‘final goods’?

Ans. The goods that reach consumers are called final goods. For example, the value of the biscuits at Rs. 20/- per packet includes the price of wheat, grinding charges, manufacturing charges, transportation, storage charges and selling charges. So only the value of the final goods (biscuits) should be taken into account for evaluation of country’s GDP.

Q.4. Expand the following:

(i) GDP

(ii) NREGA 2005.

Ans.
(i) GDP stands for Gross Domestic Product.

(ii) NREGA 2005 stands for National Rural Employment Guarantee Act 2005.

Q.5. What is GDP?

Ans. The value of final goods and services produced in Primary, Secondary and Tertiary sectors during a particular year in a country is called Gross Domestic Product (GDP).

Q.6. Mention some of the Acts that Companies in the organized sector have to follow.

Ans. Some of the Acts that Companies in the Organized sector have to follow are :-

(i) Factories Act,

(ii) Minimum Wages Act,

(iii) Payment of Gratuity Act,

(iv) Shops and Establishments Act.

Q.7. Write a short note on the Planning commission.

Ans. The Planning Commission is a body set up by the Central government that chalks out programs to tackle unemployment and related problems in addition to its major task of planning the economy of the nation.

            The following are some of the findings of the Planning Commission:-

1. 20 lakh jobs can be created in the education sector alone, by starting more schools and colleges in rural and semi-rural areas. This in turn will educate a multitude of children, who will eventually become employable.

2. 35 lakh people could find employment if the tourism industry was developed in every state.

3. Rural craft industry could be boosted along with the tourism industry giving employment to thousands of rural unemployed citizens.

4. Development of the IT services could generate lakhs of jobs for the urban unemployed.

Q.8. The rising importance of the tertiary sector in production in the present times. Discuss.

Ans. Over the past 30 years, while production has increased in all the 3 sectors, it has increased the most in the tertiary sector.

The reasons for the fast development of the tertiary sector in India are as follows:-

1. The necessity for ‘basic services’ like hospitals, educational institutions, post and telegraph services, police stations, courts, administrative offices, defense, transport and banking services have increased with the increase in population.

2. The development in the Agricultural and Industrial sectors has increased the need for services such as transportation, storage and trade.

3. As the income of the people increased the demand for services in tourism, retailing, catering and elite education also increased.

4. With higher income people have started traveling long distances for work and education, resulting in the need for increased services in the transport and communication sector.

5. With the development of Information Technology and Communication, different new services based on these sectors have been rising rapidly.

Q.9. How do we create more employment in the agricultural sector?

Ans. More employment can be created in the Agricultural sector if the government takes the following steps.

1. Loans could be given to farmers to dig wells to irrigate their land.

2. Seeds and fertilizers could be subsidized.

3. Dams can be built to irrigate dry areas.

4. Transport & Storage facilities could be increased.

5. Industries and other service related companies could be relocated in rural areas so that the underemployed people of the agricultural sector could find work.

6. More schools could be started to educate the rural population to help them become employable, as underemployment is prevalent among farmers.

Q.10. What can be done to protect the interest of the workers in the unorganized sector?

Ans. The unorganized sector comprises mainly of workers in small scale industries, casual workers in the construction trade and transport sectors and those who work as street vendors, head-load workers, garment makers and rag pickers.

Protection and support for the unorganized sector workers is very necessary for both economic and social development.

The government laws protecting these workers should be strictly implemented and those who exploit these workers should be punished severely.

Q.11. Discuss the historical changes in the three economic sectors.

Ans. As we look through the pages of history we can see that a few hundred years ago the Primary sector (Agricultural sector) was most predominant in the world.
Slowly as methods of farming improved and surplus food was produced, man channelized his energy towards manufacturing of goods.

Industries flourished and soon the Secondary sector gained prominence. The Agricultural sector also flourished due to the invention and manufacture of modern agricultural tools.

In this present era with the rising world population and rising income, the Tertiary sector (Service Sector) is gaining prominence. This is already evident in the developed nations and the change will soon be seen in the developing nations also.

X_Eco_Ch-2_Sectors of Indian Economy_Practice Set 2

Class - X
Economics
Chapter - 2
The Sectors of Indian Economy

Practice Questions – Set 2

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(1) / manufactured(2)]
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent /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

(b) Production of a commodity, mostly through the natural process, is an activity in _____________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(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

(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

Q.3. Problems faced by farming sector and some possible measures.

Answer.

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. 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 sectors for smooth economic administration and development.

Q.6. 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 to 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.

Q.7. How is the tertiary sector different from other sectors? Illustrate with examples.

Answer. The tertiary sector is different from other two sectors. This is because other two sectors produce goods but, this sector produces services. 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.

Q.8. 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 (hidden unemployment).

→ 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.

Q.9. "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.

Q.10. 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.

Q.11. 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.

Q.12. How are the activities in the economy classified on employment conditions basis?

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.

Q.13. Compare the employment conditions prevailing in organized-unorganized sectors.

Answer. The employment conditions prevailing in the organized and unorganized sectors are vastly different. The organized 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, in the unorganized sector, 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.

Q.14. 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.

Q.15. 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.

Q.16. 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.

Q.17 The workers in the unorganized sector need protection on the following issues: wages, safety and health. Explain with examples.

Answer. The workers in the unorganized 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. E.g., Working in mining, chemical industries is hazardous.
→ Health: Leave not granted in case of sickness. Medical facilities are not offered, E.g., Construction workers.