Complete NCERT Book Page wise Solution Class 10th as per Latest CBSE Syllabus
Economics
Chapter-2 SECTORS OF THE INDIAN ECONOMY
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Question 1. Fill in the blanks using the correct option given in the bracket:
(i)Employment in the service sector has not increased to the same extent as (has/ has not)
(ii)Workers in the tertiary sector do not produce (tertiary / agricultural)
(iii)Most of the workers in the organised sector enjoy job (organised / unorganised)
(iv)A large proportion of labourers in India are working in the unorganised (large / small)
(v)Cotton is a natural product and cloth is a manufactured [natural /manufactured]
(vi)The activities in primary, secondary and tertiary sectors are interdependent. [independent / interdependent]
Question 2. Choose the most appropriate answer.
(a)The sectors are classified into public and private sector on the basis of:
(i)employment conditions
(i)the nature of economic activity
(iii)ownership of enterprises
(iv)number of workers employed in the enterprise
Answer: (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
Answer: i) primary
(c)GDP is the total value of produced during a particular
(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
Answer: (ii) all final goods and services
(d)In terms of GDP the share of tertiary sector in 2010-11 is
(i)between 20 to 30 per cent
(ii)between 30 to 40 per cent
(iii)between 50 to 60 per cent
(iv)70 per cent
Answer: (iii) between 50 per cent to 60 per cent
Question 3. Match the following:
| Problems faced by farming sector | Some possible measures |
| 1. Unirrigated land | (a) Setting up agro-based mills |
| 2. Low prices for crops | (b) Cooperative marketing societies |
|
3. Debt burden |
(c) Procurement of food grains by government |
| 4. No job in the off season |
(d) Construction of canals by the government |
| 5. Compelled to sell their grains to the local traders soon after harvest | (e) Banks to provide credit with low interest |
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 |
Question 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
(iii)Cobbler :The rest are workers in the public sector, while his profession is part of the private
(iv)SAHARA Airlines : It is a private enterprise, while the rest are government
Question 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 |
Organised |
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%.
Question 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. It 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.
Question 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 and the condition of the 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?
Question 8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer: Some Samples of Work People Do and Their Classification
| S. No. | Nature of work | Nature of Activity | Sector |
| 1. | Bank Clerk | Tertiary | Organized |
| 2. | Freelance Cartoonist | Tertiary | Unorganized |
| 3. | Construction Worker | Secondary | Unorganized |
| 4. | Doctor in AIIMS | Tertiary | Organized |
| 5. | DTC Bus Driver | Tertiary | Organized |
| 6. | Farmer | Primary | Unorganized |
| 7. | Guest House Receptionist | Tertiary | Unorganized |
| 8. | Mine Worker | Primary | Unorganized |
| 9. | Own Tailoring Shop | Tertiary | Unorganized |
| 10. | Public Sector Factory Supervisor | Secondary | Organized |
Question 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 produce services rather than goods. The activities under this sector help in the development of the primary and secondary sectors. Therefore , it is also known as the service sector. These services are an aid or support for the production process. For example, goods produced in the primary or secondary sector use transportation service for movements of goods from one place to another, banking and communication services to deal with payment for goods, etc. Similarly, doctors, teacher, lawyers, tailor, etc., come under tertiary sector as they provide services rather than material goods.
Question 10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer:Disguised Unemployment is a situation of underemployment in which more than required person are engaged in a production activity. In this people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment.
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 with drawn 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.
Question 11. Distinguish between open unemployment and disguised unemployment.
Answer:
|
Question 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. Over the last four decades (1970-2010), tertiary sector has emerged as the largest producing sector. The growth in the service sector can be attributed to various factors such as:
Need for the basic services like health, education, security, finance etc. Introduction of new services like IT.
- Development of primary and secondary activities.
- Increase demand for services due to increase in per capita income.
The GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.
Question 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.
Question 14. Workers are exploited in the unorganised 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:
- No rules and regulation followed.
- 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.
Social discrimination.
Question 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.
Question 16. Compare the employment conditions prevailing in the organised and unorganized sectors.
Answer: The employment conditions prevailing in the organised and unorganised sectors are vastly different.
The Organised sector: 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.
The Unorganised sector: 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.
Question 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.
Question 18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer: Some Samples of Work People Do and Their Classification
| S. No. | Nature of work | Nature of Activity | Sector |
| 1. | Bank Clerk | Tertiary | Organized |
| 2. | Freelance Cartoonist | Tertiary | Unorganized |
| 3. | Construction Worker | Secondary | Unorganized |
| 4. | Doctor in AIIMS | Tertiary | Organized |
| 5. | DTC Bus Driver | Tertiary | Organized |
| 6. | Farmer | Primary | Unorganized |
| 7. | Guest House Receptionist | Tertiary | Unorganized |
| 8. | Mine Worker | Primary | Unorganized |
| 9. | Own Tailoring Shop | Tertiary | Unorganized |
| 10. | Public Sector Factory Supervisor | Secondary | Organized |
Question 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 | Milk Co-operative society |
| Private sector | Reliance Mobile | Satyam |
Question 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, specially railway. 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.
Question 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.
Question 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, E.g. Construction workers.
Question 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.
Question 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 |
| 2011 | 8,65,000 | 13,70,000 | 30,10,000 |
(i)Calculate the share of the three sectors in GDP for 1950 and
(ii)Show the data as a bar diagram similar to Graph 2 in the
(ii)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 200 : primary sector = 27.33%, secondary sector = 24.37%, tertiary sector = 48.30% (ii)
(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.
