Department
of Social Science
ECONOMICS(X)
CHAPTER
02
SECTORS OF INDIAN ECONOMY
NCERT TEXTBOOK
QUESTIONS
Q.1. GDP is the total money value of the following produced
during a particular year.
Ans. (b) All final goods and Services.
Q.2. Fill in the blanks using correct option given in
bracket. (REFER TEXT BOOK)
Ans. (i) Has not (ii) Tertiary (iii)
Organised (iv) Large (v) Natural, Manufactured (vi) Interdependent
Q.3.
“Tertiary sector is not playing any significant role in the development of
Indian Economy.” Do you agree? Give reasons in support of you answer.
Ans. No,
tertiary sector is playing an important role in the development of Indian economy. It helps primary
and secondary sectors to develop by providing services such as transportation,
communication, banking, infrastructure etc. This leads to more employment
opportunities. Further, this enhances the income level. With the rise in income
people start demanding more services like tourism, shopping, eating out,
private hospitals etc. Certain new services based on information technology
have been rising rapidly.
As we know,
all the three sectors are dependent on one another.
Development of one sector
Leads to the development of other sectors.
Q.4. Explain
the objectives of implementing the National Rural Employment Guarantee Act or
NREGA (2005).
Ans. The
main objective of this act is to provide employment to one person per family
for at least 100 days in a year. If government fails to provide employment, it
will give unemployment allowance to the people.
In 2005, Government made a law
implementing the Right to Work in 200 districts in India
Under this act. Now it has been extended to whole of the country.
One third of works reserved for women .It has helped in reducing the Unemployed
population of India
Q.5.
Distinguish between open unemployment and disguised unemployment.
Ans. Open
unemployment and disguised employment: In agriculture sector a large
group of
Landless labourers seek wage
employment on farms. But many people fail to get employment
And hence remain unemployed.
Since they openly search for employment and their
Unemployment is not hidden,
this is called open unemployment.
Disguised unemployment/Hidden
Unemployment is a situation in which more persons are employed on a
job than
are optimally required. If a
part of labour force is withdrawn and the total production remains
Unchanged, this withdrawn labour is known as disguised
unemployment.
Q.6. Explain
how a shift has taken place between sectors in developed countries?
Ans. About more
than 100 years ago new methods of manufacturing and technological
revolution took place. People who worked in farms began working in factories in
large numbers in new
Urban centres. Secondary sector
gradually became the most important in terms of production
And employment. Hence, over
a time, a shift had taken place from primary to secondary sector.
In the past
100 years there has been a further shift from secondary to tertiary sector in
Developed
countries. The service sector has become the most important in
terms of total
Production. Most of the working
people are currently employed in the service sector. This is
the general pattern observed in developed countries.
Q.7. The following table gives the GDP in Rupees (crores)
in the three sectors.
Year
|
Primary Sector
|
Secondary Sector
|
Tertiary Sector
|
1950
|
80,000
|
19,000
|
39,000
|
2011
|
8,18,000
|
12,49,000
|
28,18,000
|
(i)
Calculate the share of each sector in GDP for 1950 and 2011.
(ii) Show
the data as bar diagrams similar to Graph 2.
(iii) What conclusions can we draw from bar graph?
Answers ii & iii
Q.8. What do
you understand by disguised unemployment? Explain with the help of an Example.
Ans. Disguised
unemployment is a situation where the number of workers engaged in a job is
much more than required. If some of them are withdrawn from the job, the total
production will not fall. It means that marginal productivity of such workers
is zero.
Let us understand it with the
help of an example – Laxmi owning about 2 hectares of land is
Growing crops. All the five
members of the family work on the plot throughout the year.
Suppose they produce 20
quintals of food grains. Now suppose instead of 5 only 3 members
Work next year and the output
is still 20 quintals. It means that three members were enough
to work. The other two members are then said to be disguisedly
unemployed.
Q.9. Distinguish between Public sector and Private
sector.?
Public sector:
- It is controlled and managed by the government.
- The main aim of the sector is public welfare. To serve the citizens of
the country.
- The sector provides basic facilities like education,
health, food and security to the people. For Example: Railways, Post
office, BSNL.
- They raise money from public revenue like tax,
penalty, duty etc.
- Their basis of promotion is seniority. People have
job security and liability.
Private sector:
- It is controlled and managed by an individual or a
group.
- The main aim of the sector is to earn profits.
- Private sector does not provide any service at a
reasonable rate. For example: Tatas, Birlas, Reliance.
- They raise money from issuing shares and debentures
or by taking loan.
- Their (people’s) basis of promotion is merit. People have less job security and no job stability
Q.10.
Explain how public sector contributes to the economic development of a nation.
Ans. There are
some industries whose development is absolutely essential for the growth of
Economy. Such industries
include power, transport, petroleum, irrigation, iron and steel,
Fertilisers, heavy industries
etc. These industries require large investments which may be
Beyond the means of private
entrepreneurs and are not sufficiently profitable for private
Sectors. Hence all such
activities which are essential for the country’s development are carried
Into by the public sector.
Q 11. In
which sector are most of the people employed and why (IN INDIA)?
Ans. Most of the
workers are employed in Primary Sector, because:—
(i) Not enough jobs have been created in the
secondary and tertiary sectors.
(ii) More than
half of the workers in the country are working in the primary sector although
Primary
sector contributes only one third of G.D.P.
Q.12. Explain the difference in employment condition in
organised and unorganised sectors?
ORGANIZED SECTOR
|
UN ORGANIZED SECTOR
|
·
The sector is registered
by the government.
|
·
The sector is not registered
by the government.
|
·
The terms of
employment are regular.
|
·
The terms of employment
are not regular.
|
·
There is job security
|
·
There is No job security
|
·
There is extra benefits
like Pension, Paid leave etc.
|
·
Nov extra benefits, No
Paid leaves, No medical Facilities
|
·
The sector is governed by
various laws such as the Factories Act, Minimum Wages Act, etc.
|
·
The sector is not governed
by any act.
|
·
This sector includes
banks, hospitals, schools, etc.
|
·
This sector includes a
large number of people who are employed on their own doing small jobs,
etc.
|
Q.13. Explain the primary, secondary and tertiary sectors by giving examples of each.
Ans. Primary
Sector: - All those economic activities that are undertaken by
directly using natural resources are included in primary sector. For example,
mining, forestry, fishing, poultry etc.
Secondary sector:
- It cover activities in which natural products are changed
into other forms through ways of manufacturing that we generally associate with
industrial activities. For example, after obtaining a crop, say cotton, we need
machines to change it into yarn and cloth.
Tertiary Sector:
- These are the activities that help in the development of
the primary and
Secondary sectors. These
activities, by themselves do not produce any good but they are an aid or a
support for the production process. For example, any good produced in primary
or
Secondary sector need to be
transported to the market. That will be done by tertiary sector. It is also
called service sector.
Q.14.
Describe any three problems faced by workers in the unorganised sector.
Ans. The workers
of unorganised sector face following problems:–
v They are not
paid according to government rules. They are underpaid.
v They are not
given other facilities like holidays, medical facility, gratuity, etc.
v They can be
asked to leave without any reason.
v There is no
job security. Workers are hired as and when needed and
then asked to leave job
without any compensation.
Q.15.
Explain the term GDP. Why are only ‘final goods and services’ counted in GDP?
Ans. GDP means
Gross Domestic Product of a country. It is the value of all final
goods and services produced within a country during a particular year.
Only the
final goods and services are counted in the GDP. For
example, if wheat is sold at
Rs.8 per kg.
To floor mill, which sells flour to Biscuit Company which then uses flour to
make
Biscuits.
Then the value of biscuits would be counted, not the value of flour. The value
of
Biscuits contains the value of intermediate products are
already counted in the final products and if this is again counted it will lead
to double counting, causing an error in the estimation of GDP.
Q.16. Why is
the tertiary sector becoming more important than other sectors in India? Give four
reasons.
Ans. Tertiary
sector has become important in India due to
(i) Basic
services like hospitals, education, post and telegraph, courts etc. are the
Responsibility of the government.
(ii) Demand for
services such as transport, trade, storage has increased with the development of
primary
and
secondary sectors.
(iii) Demand for
tourism, shopping, private schools, private hospitals etc. increased with the
Increase in the level of income.
(iv) Rapid growth
of service sector also benefited from external demand such as software
Industry and
call centre services.
Q.17.What are the various ways to provide
employment opportunities in rural areas?
- The government can spend some money or banks can
provide a loan, to construct wells for irrigation.
- Dams can be constructed along with canals, which
will lead to a lot of employment generation.
- Government can invest some money on the construction
of roads for running mini trucks and providing jobs opportunity in
transportation.
- Local banks can provide credit at reasonable
interest to the farmers for their farming to improve.
- Identify, promote and locate industries and services
in semi-rural areas where a large number of people may be employed.
- Setting up of dal mills, opening
cold storage's, honey collection centres and industries to process
vegetables and other agricultural products, which can be sold in outside
markets.
- More and more schools should be opened which would
create about 20 lakhs jobs in the education sector alone.
- To improve the health situation, we need more
doctors, nurses, health workers, etc. to work in the rural areas.
- If tourism as a sector is improved every year, we can give additional employment to more than 35 lakh people
Q.18.Why is the tertiary sector becoming important
in India?
- In any country, several services such as hospitals,
educational institutions, post and telegraph services, police stations,
courts, village administrative offices, municipal corporations, defence,
transport, banks, insurance companies, etc., are required. These can be
considered as basic services.
- The development of agriculture and industry leads to
the development of service such as transport, trade, storage, etc. Greater
the development of the primary and secondary sector, more would be the
demand for such services.
- As income levels rise, certain sections of people
start demanding many more services like eating out, tourism, shopping,
private hospitals, private schools, professional training institutes, etc.
These changes can be seen in big cities.
- Over the past decade or so, certain new services
such as those based on information and communication technology have
become important and essential. Therefore, production of these services
has been rising rapidly.
