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TEXTBOOK QUESTIONS SOLVED

Q1. Fill in the blanks using the correct option given in ill( bracket:
(i) Employment in the service sector………….. increase, I to the same extent as production. (has/has not)
(ii) Workers in the …………… sector do not produce goo( I.. (tertiary/agricultural)
(iii) Most of the……………… workers in the sector enjoy IA 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 )

Ans.
(i) has not                                             (ii) tertiary
(iii) organised                                      (iv) large
(v) natural; manufactured                (vi) interdependent.

Q2. Choose the most appropriate answer:
(a) The sectors are classified into public and private sectors 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.

Ans. – (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.

Ans. – (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.

Ans. – (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.

Ans. – (iii) between 50 per cent to 60 per cent.

03. 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                                                                                           (e) Procurement of foodgrains by government
4. No job in the off season                                                                       (c) Construction of canals by the government
5. Compelled to sell their grains to the local                                        (e) Banks to provide credit with low interest
traders soon after harvest

Ans. 1. . (d), 2. (c) , 3. (e), 4. (a), 5. (b).

Q4. 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, SAIIAIn Airlines, All India Radio.

Ans.
(i) Tourist guide. He is appointed by the governminii while dhobi, tailor and potter belong to the sector.
(ii) Vegetable vendor. He does not require a forithd education.
(iii) Cobbler. The rest are workers in the public secloi while his profession is a part of the private secloi
(iv) SAHARA Airlines. It is a private enterprise, whib the rest arc government undertakings.

Q5. A research scholar looked at the working people in the coil 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 market places 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 work in the unorganised sector in this city?

Ans.

 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 20

The percentage of workers in the unorganised sector in this city is 70.

Q6. Do you think the classification o leconomic activities into primary, secondary and tertiaryis useful? Explain how?

Ans. Yes, the classification of economic activities into primary, secondary and tertiary is very useful because of the following reasons:
(i) On account of the information it provides we come to know how and where the people of a country are employed.
(ii) It helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
(iii) If the tertiary sector is developing much faster than the primary sector, then itimplies 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 three basic sectors for smooth economic administration and development.

Q7. For each of the sectors that we came across in this chapter why should one focus ore employment and GDP? Could there be other issues uthich should be examined? Discuss.

Ans.
One should focus on employment and GDP because
(a) These determine the size of a country’s economy
(b) Helps determine two important things—per capit.i income and productivity.
(c) 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 e. functioning and what needs to be done to initials further growth in it.

Q8. Make a long list of all kinds of work that you’ll-1d adal around you doing for a living. In what way can you classes them? Explain your choice.

Ans.
If we look around ourselves we will find people engaged in various economic activities producing goods mid services like teacher, doctor, vegetable vendor, lawyel postman, cobbler, soldier, police constable, tourist guide, dhobi, tailor, potter etc.

 People doing different jobs The economic Sectors Teacher Doctor Vegetable vendor Lawyer Postman Cobbler Soldier Police constable Tourist guide Dhobi Tailor Potter Organised Sector Organised Sector Primary Sector Organised Sector Public sector Private sector Public sector Public sector Organised Sector Private sector Private sector Private secto

Q9. How is the tertiary sector different from other sectors;’ Illustrate with a few examples.

Ans. Tertiary sector is different from the other sector. because this sector does not produce goods but they are an aid or support for the production process. Since these activities generate services rather than goods, the tertiary sector is also called service sector. It helps in development of primary and secondary sectors.
Examples: (a) Transportation—Goods that are produced in the primary sector need to be transported by trucks or trains and then sold in the wholesale and retail shops.
(b) Storage—At times it is necessary to store these products in godowns, which is also a service made available.
(c) Communication—Talking to others on telephone;
(d) Banking—Borrowing money from the banks.

Q1O. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Ans. Disguised unemployment is a situation, where people are apparently working but all of them are made to work less than their potential. If a few people move out, it will not affect the production. It is hidden in contrast to the open unemployment where a person is clearly or visibly without job. In rural areas, this can be seen in the farming community where all members of a family might be working on a farm even though so many hands are not required. They do so because of lack of another job. In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and others are doing odd jobs. Many of them don’t find work everyday.

Q11.Distinguish between open unemployment and disguised unemployment.

Ans. Differences between open unemployment and disguised unemployment.

 Disguised Unemployment Open Unemployment I . It is a situation, where people are apparently working but all of them are made to work less than their potential. 2. It is hidden. 3. If a few people moveout, it will not affect the production. 1. It is a situation, whena person has no job in hand and does not earn anything at all. 2. It is clearly visible. 3. The more the people will be unemployed, the more it will affect production.

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.

Ans. No, it’s not true. In fact tertiary sector is playing a significant role in the development of the Indian economy. The tertiary sector has contributed vastly in 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 in more than 50% in 2003. It helps in the development ol primary and secondary sectors. Though it does not produce goods but they are an aid or support for the production processes.

Q13. Service sector in India employs two different kinds ol people. Who are these?

Ans. At one end, there are a limited numbers of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair workers, transport persons, etc. These people hardly manage their livelihood.

Q14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Ans. Yes, I do agree with the view that workers are exploited in the unorganised sector.
The unorganised sector is characterised by small and scattered units which are largely outside the control ol the government. There are rules and regulations bill these are not followed. Jobs here are low-paid and often not regular.

Q15. How are the activities in the economy classified on the basis of employment conditions?

Ans. On the basis of employment conditions the activities are classified in the following ways:
(i) Organised sector: It is the one where the terms ol employment are regular and people have assured work. It is registered by the government and follows its rules and regulations which are given in various laws. Workers in the organised sector enjoy security of employment.
(ii) Unorganised sector: These arc small and scattered units which are largely outside the control of the government. There are rules and regulations bin these are not followed. Jobs here are low-paid and often not regular.

Q16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Ans.

 Organised sector Unorganised sector 1. It is the one where the terms of employment are regular and people have assured work. 1. People have no assured work. They can be removed any time. 2. They are registered by the government and have to follow its rules and regulations’ which are given in various laws such as the Factories , Act, Minimum Wages Act, ‘etc. 2.1t is largely outside the control of the government. There are rules and regulations but these are not followed. 3. It is called organised V beCause it has some formal . processes and pnacedares. 3.There are no formal processes or procedures. 4. Workers in the organised sector enjoy security of employment. They are expecteci to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer. 4.Workers in the unorganised sector do not enjoy security of employment. 5. They also get several other benefits from the employers like paid leave, payMent during holidays, provident fund, pensions, gratuity, medical benefits etc. 5.There is no provision for overtime, paid leave, holidays, leave due to sickness etc.

Q17. Explain the objective of implementing the NREGA 2005.

Ans. All those who are able to and in need of work will get guaranteed 100 days work and if the government fails to do so, it will give unemployment allowances to them. The types of work that would in future help to increase the production from land will he given preference under this Act.

Q18. Using examples from your area compare and contrast the activities and functions of private and public sectors.

Ans.
Public Sector
— In public sector, the government owns most of the assests and provides all the services. Example—The Indian Railways.
— These industries aim for social welfare and give all kinds of facilities to their workers which they deserve to get.
Private Sector
— In a private sector, ownership of assets and delivery of services is in the hands of the private individuals or companies. Example: Tata Iron and Steel Company Limited.
— These enterprises are mainly concerned to profit motive.

Q19. Discuss and fill the following table giving one example each from your area.

 Well-managed organisation Badly-managed organisation Public sector Private sector __ __ __ __

Ans.

 Well-managed organisation Badly-managed organisation Public sector Private sector MENT Reliance mobile Ari india Astyam

Q20. Give a few examples of public sector activities and explain why the government has taken them up.

Ans. A few examples include provision of water, electricity and some modes of transport. The government has taken these up because water and power arc the basic needs of every individual. 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 and ensures its uninterrupted supply to public.

Q21. Explain how public sector contributes to the economic development of a nation?

Ans. In the public sector, the government owns most of the assests and provides all services. Public sector industries aim for social welfare and give all kinds of facilities to their workers which they deserve to get. It plays a vital role in contributing to the Human Development Index via its functioning in health and education services. Running proper schools and prividing quality education, particularly elementary education, is the duty of the government. The government pays attention to the aspects of human development such as availability of safe drinking water, housing facilities for the poor and food and nutrition. Also, by buying foodgrains at a “fair price” from farmers, providing electricity, water, postal services at low rates, the government ensures that the people have a good living.

Q22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.

Ans.
• Wages: Workers in the unorganised sector are often exploited and not paid a fair wage. As their wages are low, they need protection. They must be given fair wages so that they may support their family comfortably.
• Safety: There are several workers who have to work in mines or crackers factory to earn their livelihood. Thus, they face great risk, which should be paid attention.
• Health: Long working hours and unhygienic working conditions pose great problems to the health of the workers.

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 60,000 million. Out of this 32,000 millioli 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?

Ans.

 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

In order to generate more employment in the city more companies need to be brought under organised sector so that workers from the unorganised sector may get jobs there, with higher and more secure wages. For the government must provide loans and aid lo companies transferring from unorganised to organised sectors.

Q24. The following table gives the GDP in Rupees (Crores) the three sectors:

 Year Primary Secondary Tertiary 1950 80,000 19,000 39,000 2000 3,14,000 2,8.,000 5,55,000

(i) Calculate the share of the three sectors in GDP lot 1950 and 2000.
(ii) Show the data as a bar diagram similar to Grapli in the chapter.
(iii) What conclusions can we draw from the bar graph?

Ans. (1) In 1950,
${{Shareof{\mathop{\rm sectorinGDPfortheyear}\nolimits} 2000} \over {totalGDPofthere\sec tor}}$
=80,000+19,000+39,000
=1,38,000  crores
Share of primary sector
=${{80,000} \over {1,38,000,}} \times 100$
=57.59%
Share of  secondary   sector
=${{19,000} \over {1,38,000,}} \times 100$
13.76%
Share of  tertiary  sector
=${{39,000} \over {1,38,000,}} \times 100$
=28.26%
in 2000,
$Shareof{\rm{ }}crores{\rm{sectorinGDPfortheyear}}2000totalGDPofthere\sec tor$
=3,14,000+2,80,000+5,55,000
=11,49,000 crores
Share of primary sector
${{3,14,000} \over {11,49,000}} \times 100$
27.33%
Share of  secondary   sector
${{2,80,000} \over {11,49,000}} \times 100$
24.36%
Share of  tertiary  sector
${{5,55,000} \over {11,49,000}} \times 100$
48.30%

(iii) We can draw the conclusion that the share of ilic 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.