SECTORS OF INDIAN ECONOMY 10 NCERT SOLUTIONS

 SECTORS OF INDIAN ECONOMY 10 NCERT SOLUTIONS

SECTORS OF INDIAN ECONOMY 10 NCERT SOLUTIONS

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Q1: 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. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised 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) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.

Q2: 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

Q4: Find the odd one out and say why.
Answer:

Tourist guide, dhobi, tailor, potter.	Potter, because only the potter relates to the secondary sector.
Teacher, doctor, vegetable vendor, lawyer.	Vegetable vendor, since only this directly helps in the production of goods.
Postman, cobbler, soldier, police constable.	Cobbler because the only cobbler falls in the private sector.
MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.	Sahara Airlines, as this is only a private sector company in the group.

Q6: Do you think the classification of economic activities into primary, tertiary, and secondary is useful? Explain how.
Answer: Importance of Economic Sector Classification:

1. Employment Information: Helps understand employment distribution across sectors. For instance, in 2000, India had about 60% of its workforce in the primary sector, indicating its significance.

2. GDP and Per Capita Income: Aids in determining which sector contributes more or less to the country's GDP and per capita income.

3. Agricultural Health Indicator: Indicates the state of agriculture; if the tertiary sector is growing faster, it suggests agricultural decline, prompting necessary government intervention.

4. Awareness of Sectoral Trends: Enables identification of declining sectors like agriculture, which may suffer from waning popularity or advancement.

5. Employment Conditions: Provides insights into employment issues like disguised unemployment, common in India's primary sector, where removing some workers may not affect production.

6. Sectoral Progress Monitoring: Helps track sectoral progress; for example, the tertiary sector's rise due to factors like the need for basic services and IT services' emergence.

In conclusion, classifying economic activities into these sectors is crucial for effective economic governance and development.

Q7: For each of the following 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.
Ans: Importance of Focusing on Employment and GDP:

1. Employment Insights: Reveals the number of people employed in each sector, aiding in understanding the workforce distribution. For example, in 2000, the primary sector employed more people than the secondary and tertiary sectors.

2. GDP Contribution: Indicates each sector's contribution to the GDP. In 2000, the tertiary sector contributed more to the GDP than the agriculture and secondary sectors.

3. Generating Employment Opportunities: By analyzing GDP and employment data, conclusions can be drawn regarding the creation of new job opportunities in various sectors, enabling appropriate actions to be taken.

4. Improving Employment Conditions: Helps in understanding employment conditions, especially in the unorganized sector, allowing for necessary steps to improve worker conditions and prevent exploitation.

Focus on Other Issues:

1. Work Conditions: Ensuring favorable working conditions for workers.

2. Legal Compliance: Ensuring employment is regular and compliant with laws such as the Factories Act and Minimum Wages Act.

3. Public Welfare: Ensuring production is for the welfare of the people, avoiding exploitation through price hikes or market scarcity.

4. Environmentally Friendly Practices: Promoting practices that are environmentally friendly.

In summary, while discussing the role of different sectors in the economy, it is essential to consider these aspects to ensure balanced growth and development.

Q9: How is the tertiary sector different from other sectors? Illustrate with few examples.
Answer:
Unique Characteristics of the Tertiary Sector:

1. Supporting Role: The tertiary sector aids in the development of the primary and secondary sectors.

2. Non-Good Producing Activities: Tertiary activities do not directly produce goods but support the production process. For instance, the transport system facilitates the movement of goods from factories to markets or storage facilities.

3. Facilitation of Communication and Finance: Provides communication tools like telephones and financial services like banking, which are crucial for trade and production.

4. Clarification of Tertiary Activities: Activities like transport, storage, and communication are not classified as tertiary activities, as they support production and trade.

In summary, the primary sector provides the foundational raw materials, which are then transformed into goods through manufacturing in the secondary sector. The tertiary sector, while not directly producing goods, plays a vital role in supporting and facilitating the production and distribution processes.

Q10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: 

Disguised Unemployment:

1. Definition: It is a type of unemployment where individuals appear to be employed but are actually not fully utilized in their jobs. Also known as Hidden Unemployment.

2. Overstaffing: More people are engaged in a task than actually required, leading to inefficiency.

3. Rural Example: Common in agriculture, where all family members work on the same plot. Removing some workers doesn't affect output, indicating disguised employment.

4. Urban Example: Often found in small businesses where all family members are employed, even though fewer could manage the business.

In essence, disguised unemployment reflects a situation where the workforce is not fully utilized, leading to inefficiencies in the economy.

Q11: Distinguish between open unemployment and disguised unemployment.
Ans:

Types of Unemployment:

1. Open Unemployment:

• Definition: Lack of adequate employment opportunities for the labor force.
• Commonly Found: In the industrial sector and among landless agricultural laborers in rural areas.

2. Disguised Unemployment:

•  Definition: People appear employed but are not fully utilized.
•  Commonly Found: In the unorganized sector, where either work is irregular or more people are employed than necessary.

Q12: 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:
Tertiary Sector's Role in Indian Economy:

1. Limited Employment Growth: While the production in the service sector has significantly increased, the employment growth has not kept pace. In 2000, service sector production rose by 11 times, but employment only increased less than three times, with over half of the workforce still in the primary sector.

2. Disparity in Service Growth: While new services like information technology have grown, not all services in the sector have shown significant growth. Many workers in services such as small shopkeeping, repair services, and transportation struggle to make a living, and their contributions to the economy are limited due to lack of alternative job opportunities.

In summary, while certain segments of the service sector, like IT, have shown significant growth, other parts, characterized by low-skilled and low-income workers, have not contributed substantially to India's economic development.

Q13: Service sector in India employs two different kinds of people. Who are these?
Answer: Types of Service Sector Employment in India:

1. Directly Productive Services: People engaged in services that directly aid in the production of goods. Examples include transportation, storage, communication, and finance.

2. Ancillary Service Providers: People engaged in services that do not directly aid in production but support primary service providers. Examples include teachers, doctors, barbers, cobblers, and lawyers. These workers provide services to the primary service providers.

Q14: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Answer: Exploitation in the Unorganized Sector:

1. No Fixed Working Hours: Workers often work long hours, typically 10-12 hours, without paid overtime.

2. Lack of Allowances: They do not receive additional allowances apart from their daily wages.

3. Non-Adherence to Government Regulations: Employers often do not follow government rules and regulations meant to protect laborers.

4. Lack of Job Security: Workers have no job security and can be dismissed without notice or compensation.

5. Low Wages: Jobs in this sector are low-paid, and as many workers are illiterate, ignorant, and unorganized, they are unable to negotiate for better wages.

6. High Levels of Debt: Workers in this sector are often heavily in debt, making them more likely to accept lower wages due to their financial vulnerability.

Q15: How are the activities in the economy classified on the basis of employment conditions?
Answer: Organized and Unorganized Sectors:

1. Organized Sector:

   Definition: Includes registered enterprises that follow government rules and regulations.

   Examples: Reliance Industries Ltd., GAIL, etc.

2. Unorganized Sector:

   Definition: Comprises small, scattered units largely outside government control.

   Examples: Casual workers in construction, shops, etc.

   Characteristics: No job security, tough employment conditions, non-adherence to rules and regulations.

Q16: Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: Employment Conditions: Organized vs. Unorganized Sectors

Organized Sector:

• Registered companies offering job security.
• Benefits include paid holidays, pensions, health, and other benefits.
• Fixed working hours and extra pay for overtime.

Unorganized Sector:

• No job security, paid holidays, or pensions.
• Lacks benefits like provident fund or health insurance.
• Unfixed working hours and no guarantee of a safe work environment.

Q17: Explain the objective of implementing the NREGA 2005.
Answer: National Rural Employment Guarantee Act (NREGA) 2005:

1. Objective: Guarantee the right to work.

2. Implementation: Initially in 200 districts.

3. Employment Guarantee: Provides 100 days of employment per year to those able and in need.

4. Unemployment Allowance: If government fails to provide employment, it will give unemployment allowance.

5. Work Preference: Gives preference to works that increase land productivity.

Q18: Using examples from your area compare and contrast the activities and functions of private and public sectors.
Answer:
The activities and functions of private and public sectors in our area may be compared as mentioned below :

Private Sector	Public Sector
(1) The vegetable shops, grocery shops, sweet shops etc. are in private sector.	(1) Mother Dairy booths which sell vegetables, fruits, milk and milk products are in public sector.
(2) These are owned by private individuals.	(2) These are owned by public sector undertaking ‘Mother Dairy’
(3) Vegetables and other products are generally of good quality.	(3) The vegetables and fruits are generally of average or poor quality.
(4) The rates may be slightly higher	(4) The rates are lower than the market rates.
(5) The companies like Reliance, Tata, Airtel provide telephone and TV services which are of very good standard.	(5) MTNL provides telephone services. There are complaints against their services. On many occasions, telephones remain out of order, hut they do not charge for that period.
(6) The shopkeepers provide free home delivery service without any extra-charge.	(6) Mother Dairy or any other public under taking do not provide free home delivery service.
(7) Private schools provide education of good quality. Their students are well-dressed and disciplined. Their medium of in structions is always English.	(7) The schools run by MCD do not provide quality education. Their students are not well-dressed and disciplined. Their medium of instructions is generally Hindi.

Q20: Give three examples of Public Sector activities and explain why the government has taken up them.
Answer:  Examples of Government Initiatives:

Railways:

Reasons for government involvement:

  1. Ability to invest large sums in long-term public projects.

  2. Ensuring affordable transportation.

NTPC (National Thermal Power Corporation):

Government's aim:

  Providing electricity at a lower rate than the actual cost of production.

  Supporting and encouraging the private sector, especially small-scale industries.

AIIMS (All India Institute of Medical Sciences):

Government's objective:

  Providing quality health services at reasonable rates.

Q21: Explain how Public sector contributes to the economic development of a nation.
Ans:

Contribution of Public Sector to Economic Development:

1. Infrastructure Development: Promotes rapid economic development by creating and expanding infrastructure.

2. Employment Opportunities: Creates employment opportunities, reducing unemployment rates.

3. Financial Resources: Generates financial resources for development through its operations.

4. Income and Wealth Equality: Ensures equality of income and wealth, contributing to balanced regional development.

5. Support for Industries: Encourages the development of small, medium, and cottage industries.

6. Price Stability: Ensures easy availability of goods at moderate rates, contributing to price stability.

7. Community Development: Contributes to community development, improving the Human Development Index (HDI) through health and educational services.

Q22: The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples?
Answer: Protection Needed for Unorganized Sector Workers:

Wages, Safety, and Health Protection:

• Unorganized sector workers, especially in construction and mining, lack job security and face fluctuating wages.
• The Minimum Wages Act helps protect them from economic exploitation.

Safety Concerns:

• Miners in private mining companies often suffer injuries or fatalities due to inadequate safety measures.
• Governments enforce strict safety rules to protect workers in such industries.

Health Insurance and Protection:

• Many unorganized sector companies do not provide health insurance, exposing workers to long-term health risks.
• Government intervention is crucial to protect workers from employer exploitation and ensure their well-being.

Q23: 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: Generating Employment in Ahmedabad:

Government Intervention: Government needs to focus on creating more jobs, especially in the unorganized sector.

Organized Sector Expansion:

• Organized sector pays higher wages but employs fewer workers.
• More companies should be encouraged to join the organized sector to attract workers from the unorganized sector with better pay and job security.

Financial Support: Government should provide loans and aid to companies transitioning from the unorganized to organized sector.