CBSE Class 10 Social Science Economics Sectors of the Indian Economy Assignment Set 03

Question. List out the 3 major activities carried out by people
Answer:
1) Primary
2) Secondary
3) tertiary

Question. Why are only ‘final goods and services’ counted to know total production in each sector?
Answer: The value of final goods already includes the value of all the intermediate goods that are used in making the final good. Hence, the value of Rs 60 for the biscuits (final good) already includes the value of flour (Rs 10).

Question. What is GDP?
Answer: It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.

Question. What does the history of developed countries indicate about the shifts that have taken place between sectors?
Answer: At initial stages of development, primary sector was the most important sector of economic activities.
Over a long time (more than hundred years), those people who had earlier worked on farms now began to work in factories in large numbers. Secondary sector gradually became the most important in total production and employment.
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 also employed in the service sector.

Question. Why is the tertiary sector becoming so important in India?
Answer:
1) First, in any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, municipal corporations, defense, transport, banks, insurance etc. are required. In a developing country the government has to take responsibility for the provision of these services.
2) Second, the development of agriculture and industry leads to the development of services such as transport, trade, storage and the like, as we have already seen. Greater the development of the primary and secondary sectors, more would be the demand for such services.
3) Third, as income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
4) Fourth, over the past decade or so, certain new services such as those based on information and Communication technology have become important and essential. The production of these services has been rising rapidly.

Question. What is underemployment?
Answer: Underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence, it is also called disguised unemployment.

Question. How can we create more employment in Rural areas
Answer:
1) The government can spend some money or banks can provide a loan, to construct a well to irrigate the land. More production will create more work on the field for sowing and harvesting.
2) Construction of a dam and canal can create more job opportunities.
3) If the government invests some money in transportation and storage of crops, or makes better rural roads so that mini-trucks reach everywhere it can lead to more job opportunities.
4) Tourism and regional craft industries, dal mills, honey collection centers, vegetable processing can also create more job opportunities.
5) Health services and more schools will also create employment opportunities.

Question. Why do you think NREGA 2005 is referred to as ‘Right to work’?
                                        ​​​​​​​OR
Explain the objective of implementing the NREGA 2005.
Answer:
1) The central government in India recently made a law implementing the Right to Work in 200 districts of India. It is called National Rural Employment Guarantee Act 2005 (NREGA 2005).
2) Under NREGA 2005, all those who are able to, and are in need of, work have been guaranteed 100 days of employment in a year by the government.
3) If the government fails in its duty to provide employment, it will give unemployment allowances to the people.

Question. In what ways can employment be increased in urban areas?
Answer: Every state or region has potential for increasing the income and employment for people in that area. It could be tourism, or regional craft industry, or new services like IT.

Question. How is organised sector different from unorganised sector?
                    ​​​​​​​                    ​​​​​​​OR
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer. (points given under unorganised sector)
                    ​​​​​​​                    ​​​​​​​OR
How are the activities in the economy classified on the basis of employment conditions?
                    ​​​​​​​                    OR
The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
Answer:
Organised Sector:
1) Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
2) They are registered by the government and have to follow its rules and regulations which are given in various laws e.g. Establishments Act etc.
3) Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. If they work more, they have to be paid overtime by the employer.
4) They get paid leave, payment during holidays, provident fund, gratuity etc. They are supposed to get medical benefits and,
5) The factory manager has to ensure facilities like drinking water and a safe working environment. When they retire, these workers get pensions as well.

Unorganised Sector:
1) The unorganized sector is characterized by small and scattered units which are largely outside the control of the government.
2) There are rules and regulations but these are not followed.
3) Jobs here are low-paid and often not regular.
4) There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
5) Employment is not secure. People can be asked to leave without any reason.

Question. There are several things needed by the society as a whole but which the private sector will not provide at a reasonable cost. Why?
Answer:
1) Some of these need spending large sums of money, which is beyond the capacity of the private sector.
2) Also, collecting money from thousands of people who use these facilities is not easy.
3) Examples are construction of roads, bridges, railways, harbors, generating electricity, providing irrigation through dams etc.
4) Thus, governments have to undertake such heavy spending and ensure that these facilities are available for society.

Question. Who are the vulnerable people who need protection in unorganized sector?
Answer:
1) In the rural areas, the unorganized sector mostly comprises of landless agricultural laborers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).
2) These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.
3) In the urban areas, unorganised sector comprises mainly of workers in small-scale industry, casual workers in construction, trade and transport etc., and those who work as street vendors, head load workers, garment makers, rag pickers etc.
4) Small-scale industry also needs government's support for procuring raw material and marketing of output.
5) The casual workers in both rural and urban areas need to be protected.
6) We also find that majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganised sector. Besides getting the irregular and lowpaid work, these workers also face social discrimination.

Question. Not the entire service sector is growing equally well. Explain.
Answer:
1) Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers.
2) At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Hence, only a part of this sector is growing in importance.

Question. More than half of the workers in the country are working in the primary sector, mainly in agriculture, producing only a quarter of the GDP. Give reason.
Answer:
1) The workers in agriculture are not producing as much as they could. As there are more people in agriculture than is necessary.

Question. Underemployment can also happen in other sectors besides primary sector. Explain
Answer:
1) Workers in the service sector in urban areas who search for daily employment. They are employed as painters, plumbers, repair persons and others doing odd jobs. Many of them don’t find work every day.
2) Similarly, we see other people of the service sector on the street pushing a cart or selling something where they may spend the whole day but earn very little. They are doing this work because they do not have better opportunities.

Question. A remarkable fact about India is that while there has been a change in the share of the three sectors in GDP, a similar shift has not taken place in employment. The primary sector continues to be the largest employer even in the year 2000. Explain.
Answer:
1) It is because not enough jobs were created in the secondary and tertiary sectors. (Pg 26 1st para)

Question. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Answer:
1) It help us to know what is the share each sector in GDP.
2) Also, it tells us how many workers are employed in each sector.
3) Hence, it is necessary to classify economic activities into these three basic sectors for smooth economic administration and development.

Question. 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:
1) In each of the three sectors, employment rate as well as its contribution to the GDP helps us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

Question. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer:
1) The tertiary sector is different from the other sectors because it does not manufacture or produce anything. For this reason, it is also known as the service sector. It helps the primary and secondary sectors in development. The tertiary sector involves services like transport, storage of goods, communications, banking and administrative work.

Question. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer:
1) Disguised unemployment is a form of underemployment where one has a job but the work is divided.
2) 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.
3) In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and those doing odd jobs have work but they may not find daily or regular employment.

Question. Distinguish between open unemployment and disguised unemployment.
Answer:
1) Open unemployment is when a person has no job in hand and does not earn anything at all.
2) Disguised unemployment, on the other hand, is mostly found in the unorganised sector where either work is not consistently available or too many people are employed for some work that does not require so many hands.

Question. 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:
1) This statement is not true. 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, created many job opportunities and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

Question. 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.

Question. Explain how public sector contributes to the economic development of a nation.
Answer:
1) The public sector contributes to the economic development of a nation via its functioning in health and education services.
2) Also, by buying food grains at a “fair price” from farmers,
3) By providing electricity, water, postal services at low rates, the government ensures that the people have a good living.

Question. Distinguish between public and private sector with examples.(5)
Answer:
Public Sector:
1) In the public sector, the government owns most of the assets and provides all the services.
2) Railways or post office is an example of the public sector.
3) Public sector is not guided by the motive to earn profits.
Private Sector:
1) In the private sector, ownership of assets and delivery of services is in the hands of private individuals or companies.
2) Whereas companies like Tata Iron and Steel Company Limited(TISCO) or Reliance Industries Limited (RIL) are privately owned.
3) Activities in the private sector are guided by the motive to earn profits.