CBSE Class 10 Economics Sector of Indian Economy Worksheet Set B

→ Classification of Sectors in Indian Economy-

(a) On the basis of nature of activity: Primary, Secondary and Tertiary Sectors. All three sectors are interdependent.

(b) On the basis of ownership – Private and Public Sectors.

(c) Division of sectors as organized and unorganized sectors.

Economic- Activities and Non- Economic Activities.

The value of all final goods and services produced within a country (in all the three sectors) during a particular year is referred to as the Gross Domestic Product. (GDP)

The role of National Rural Employment Guarantee Act 2005 in alleviating Unemployment.

Why is protection and support to workers of unorganized sector necessary?

How the public sector contributes to the economic development of a Nation?

Very Short Type Questions

Question. During the period between 1973 to2003, the production has increased most in the ________
Answer : Tertiary Sector

Question. GDP is the value of……….. produced during a particular year
Answer : All final goods & services

Question. The sectors are classified in to public and private sectors on the basis of ___________
Answer : Ownership of enterprises

Question. NREGA 2005 guarantees work for how many days in a year?
Answer : 100 days.

Question. Which one of the following is a public sector enterprise?
Answer : Indian Railway

Question. Which was the largest producing sector in 1973?
Answer : Primary Sector

1 Explain the meaning of Primary sector of economic activities using examples.

1. There are many activities that are undertaken by directly using natural resources. Take, for example, the cultivation of cotton. When we produce a good by exploiting natural resources; it is an activity of the primary sector.

2. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector.

3. This is called Primary Sector because it forms the base for all other products that we subsequently make.

2. Explain the meaning of Secondary sector of economic activities using examples.

1. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.

2. For example, using cotton fiber from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material, we make sugar or gur.

3. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector.

3. Explain the meaning of Tertiary sector of economic activities using examples.

1. These are activities that help in the development of the primary and secondary sectors.

2. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops

3. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

4. Service sector also includes some essential services that may not directly helping the production of goods such as, doctors, teachers, lawyers, washer man, cobblers, people in administrative services, certain new services based Information Technology and accounting workers.

4 Differentiate between Final Goods and Intermediate goods.

Final Goods: - All goods which are meant either for consumption by consumers or for investment by firms are called final goods. They are finished goods meant for final use.
Intermediate Goods: - All goods which are used as raw material for further production of other goods or for resale in the same year are known as intermediate goods.

5. What is G D P? How is G D P, calculated in India? OR Explain the Process to calculate GDP. (CBSE 2014)

1. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year.

2. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country.

3. It is the value of all final goods and services produced within a country during a particular year.

4. In India, the mammoth task of measuring GDP is undertaken by a central government ministry.

5. This Ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP.

6 Why is that “only value of final goods and services” taken while calculating G D P?

1. While calculating G D P, not every good or service that is produces and sold needs to be taken. It makes sense only to include the final goods and services.

2. This is because the value of final goods already includes the value of all the intermediate
goods that are used in making the final goods.

3. If we count the value of the intermediate goods, then we would be counting the value of the same things a number of times.

7 Discuss the reasons for the increasing significance of Tertiary sector in last 30 years in India.

1. In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defense, transport, banks, insurance companies, etc. are required. These can be considered as basic services. In a developing country the government has to take responsibility for the provision of these services.

2. The development of agriculture and industry leads to the development of service such as transport, trade, storage and the like, as we have already seen.

3. Greater the development of the primary and secondary sectors more would be the demand for such services.

4. 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. You can see this change quite sharply in cities, especially in big cities.

5. 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

8 “Under employment can also be seen in all other sectors”. Explain with examples.

Note: write answer in your note book.

9 Evaluate the shifts that have taken place in different sectors of Economy during the last hundred years.

PRIMARY:

1. Generally, it has been noted from the histories of many, now developed, countries that at initial stages of development, primary sector was the most important sector of economic activity. As the methods of farming changed and agriculture sector began to prosper, it produces much more food than before. Many people could now take up other activities.

SECONDARY:

2. Over a long time (more than hundred years), and especially because new methods of manufacturing were introduced, factories came up and started expanding. Those people who had earlier worked on farms now began to work in factories in large numbers.

TERTIARY:

3. 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 total production. Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries years.

10 Draw the Graph –I Given in text Book page No. 24 on note book and do a comparative study on the contribution of different sectors into GDP in 1973 and 2003. Answer the give questions.

1. Which was the largest producing sector in 1973?

2. Which is the largest producing sector in 2003?

3. Which sector has grown most over the last thirty years?

4. What was the GDP of India in 2003?

Note: do write in note book.

11 Draw the Graph-3 given in text book page no.25 and do a comparative study on the employment generation in three sectors in 1973 and 2003. Answer the following questions. What was the share of Primary sector in employment in 1973?

1. What was the share of Secondary sectors in employment in 1973?

2. What was the share of Tertiary sectors in employment in 1973?

3. What is the share of Tertiary sector in employment in 2003?

4. Which sector provides the largest share of employment both in 1973 and 2003?

Note: do write in note book.

12 What does ‘Under employment’ or ‘Disguised Unemployment’ mean? OR

What is ‘Under employment’? Explain with an example. CBSE (October-2012)

1. Under employment is a situation where everyone is working, none remains idle, but in actual fact their labour effortgets divided.

2. Each one is doing some work but no one is fully employed. This is the situation of underemployment, where people are apparently working but all of them are made to work less than their potential.

3. This kind of underemployment is hidden in contrast to someone who does not have Job and is clearly visible as unemployed. Hence, it is also called disguised unemployment.

13 In what ways can employment be increased in urban areas?

1. A few ways to increase employment opportunities other than large-scale industries in India are:

2. A study conducted by the Planning Commission estimates that nearly 20 lakh jobs could be created in the education sector alone. Similarly, if we are to improve the health situation, we need many more doctors, nurses, health workers etc. These are some ways by which jobs would be created.

3. 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. Some of these would require proper planning and support from the government.

14 Compare the three sectors of economy on the basis of the Supply of employment.

ANS. Sectors of Indian economy on the basis of supply of employment.

1. 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.

2. It is because not enough jobs were created in the secondary and tertiary sectors. Even though industrial output or the production of goods went up by eight times during the period, employment in the industry went up by only 2.5 times.

3. While production in the service sector rose by 11 times, employment in the service sector rose less than three times.

15 Suggest a few methods by which employment opportunities could be created In rural areas. OR In which three ways can employment be increased in rural areas? Explain with examples. CBSE (October-2012)

1. By spending some money or bank loan to construct a well for family to irrigate the land which would help framer to grow more than one crop in a year.

2. Construct dam and canals to irrigate may farms and this could create lot of employment within the agriculture.

3. By investing on transportation and storage of crops or making rural roads, would encourage farmers to grow more and sell crops and also provide employment in services like transport or trade.

4. Local Banks loan at reasonable rate of interest to buy seeds fertilizers, agricultural equipment and pump sets to draw water would help to cultivate land more

5. By identifying, promoting and locating industries and services in Semi-rural areas whereby employ large number of people. E.g. Setting Dal Mill to procure and process pulse crops and sell in the cities.

16 Suggest the role of National Rural Employment Guarantee Act 2005 in alleviating Unemployment.

OR Describe the provisions of NREGA 2005. (CBSE 2014)

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. In 2009, it has been expanded to all 604 districts of India.

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. The types of work that would in future help to increase the production from land will be given

17 Distinguish between Organized and Unorganized Sectors of employment.

Organized Sectors of Employment:

1. Organized 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 such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc. Workers in the organized sector enjoy security of employment.

Unorganized Sector of Employment

1. The unorganized sector is characterized by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed.

2. Jobs here are low-paid and often not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People are asked to leave without any reason.

18 Why is protection and support to workers of unorganized necessary?

1. Unorganized sector jobs, which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular.

2. These jobs are not secure and have no other benefits.

3. Besides getting the irregular and low paid work, these workers also face social discrimination (especially S T and S Cs and backward communities form this sector)

19 How to protect workers in the Unorganized Sector?

In the rural areas, the unorganized sector mostly comprises of landless agricultural labourers, small and marginal farmers, sharecroppers and artisans. These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.

In the urban areas, unorganized 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. Small-scale industry also needs governments support for procuring raw material and marketing of output.

SHORT ANSWER TYPE QUESTION [3 MARKS]

Question. With the example of sugar cane, explain the interdependence of all the three sectors of economy.
Answer : Primary Sector: cultivation of sugar cane Secondary Sector: processing of sugar cane to make sugar Tertiary sector:
• Transportation of sugar cane into factories for processing it into sugar
• Transportation of sugar packs to various markets
• Sale of sugar by wholesalers and retailers.
So, the process starts when the sugar is cultivated. Since cultivation is part of agriculture, it comes in the primary sector. After the cultivation, the sugar cane is processed to make sugar in the factories, which is an industrial process and thus comes in the secondary sector. After which, the sugar is transported to various markets, where it is sold by retailers and wholesalers which is part of tertiary sector.
In this way, all the three sectors are interdependent.

Question. Why does disguised employment not help in productivity of a country? Explain with the help of an example.
Answer : Disguised employment means that more number of people employed in an economic activity than required. If these extra people are removed, there will be no effect on the production.
They seem to be employed but actually they are not. The workforce is not being used to its potential. They divide the work but do not increase production.
They do not help in increasing the productivity as their efforts are not economic. For example, in the rural areas, the entire family is engaged in the production of crops on the same piece of land. If there are ten people in the family, three people can manage the production. If the extra seven people ard removed the productivity will be the same. They seem to be making no contribution.
Hence, it is truly stated that disguised or hidden employment does not help in productivity of a country.

Question. Explain the objectives of implementing the NREGA 2005
Answer : National Rural Employment Guarantee Act 2005 (NREGA) is an Indian labour law and social security measure that aims to guarantee the right to work.
• It aims at enhancing livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
• The NREGA was initiated with the objective of “enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work.”
• Another aim of NREGA is to provide employment within 5 km of an applicant’s residence, and minimum wages are to be paid. If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.

Question. What constitutes the unorganized sector in urban areas? Why do workers in this area need protection?
Answer : In the urban areas, unorganised sector comprises mainly small-scale industry, casual workers in construction, trade and transport, street vendors, head-load workers, garment makers, ragpickers, etc. All these workers constitute unorganized sector in urban areas.
A majority of workers in the unorganized sector are from scheduled castes scheduled tribes and backward communities. Workers in unorganised sector urban areas need protection because, besides getting the irregular and low- paid work, these workers also face social discrimination.
They are looked down upon by the people in urban areas. Protection and support to the unorganised sector workers is thus necessary for both economic and social development.

Question. Highlight the three factors responsible for the growth of service sector in the Indian economy.
Answer : Ever since the service sector got liberalized in the year 1991, it has seen constant growth. The following are the reasons responsible for the growth of service sector in the Indian economy.
• Increase in the income of people: Since the income level of the people has been increasing ever since, with increasing affluence there is increase in the demands of the services like maids, cooks, servants and gardeners. (h) Increase in population: With an increase in number of people in the country, the demand for service sector has increased. Demands for service like schools, health department and nursing homes have increased.
• Increase in numbers of working women: With the passage of time there has been a massive increase in the number of working women in India. This has led to increase in demands in the service sector like household help, babysitters and cooks.

Question. How far is it correct to say that several services which cannot be provided by private sector can be provided by the public sector? Explain.
Answer : A few examples of public sector activities are Indian Railways, water, electricity board and modes of transport.
There are several necessities of common man, but it is not possible for the private sector to provide all these things at reasonable cost. For example, water and electricity are the basic needs of everyone. If the work of providing these is given to private sector then the latter can exploit this opportunity by selling the same at high rates. Therefore the supply of basic amenities is given to the government so that it provides these facilities to the people at low and affordable rates, ensuring the smooth and uninterrupted supply to the public.

Question. “Consequences of environmental degradation do not respect national or state boundries.” Explain
Answer : Environmental degradation is a global issue, which has been discussed and debated over the past decades. It is the deterioration of the environment through depletion of resources such as air, water and soil. It affects and depletes the ecosystem, hampers the ozone layer and is responsible
for extinction of wildlife. Environmental degradation is not restricted to national or state boundaries. It hampers the surroundings irrespective of any national or state boundaries and its harmful effects are well felt in the surrounding states and neighbouring countries and even globally.
For example, if India has a lot of air pollution through massive thermal power plants and other sources, it affects its neighbouring countries like Pakistan, Sri Lanka and Bangladesh. Acid rain and climate change are some transcontinental issues. Land degradation in india affects Bangladesh as it brings massive silt and floods.
Therefore, environmental degradation is a serious issue which has grabbed the attention of all countries irrespective of boundaries because protecting the environment is the need of the hour at the global level.

Question. Explain the meaning of disguised employment with the help of an example
Answer : The following are the features of the unorganized sector.
• Working hours are more and harsh.
• No job security is there.
• No employment benefits are given.
• Employees work in poor working conditions.

Question. How did NREGA 2005 bring upliftment of the rural people? Explain.
Answer : The NREGA 2005 has helped in the upliftment of Rural people in the following manner.
• Guaranteed Employment: Any adult member of a rural household applying for work under the Act is entitled to employment. Every rural household is entitled to 100 days of employment. Guaranteed Wages: Wages are to be paid on a weekly basis and not beyond a fortnight. Wages are to be paid on the basis of:
• Centre-notified, state-specific NREGA wage list
• Time rates and piece rates as per state-specific Schedule of Rates (SoRs).
• In any case, the wage cannot be at a rate less than Rs. 60 per day.
• Unemployment Allowance: If work is not provided within 15 days of applying, the state is expected to pay an unemployment allowance which is one- fourth of the wage rate.

Question. How does service sector help in the development of primary and secondary sectors? Explain with examples.
Answer : After primary and secondary sectors, there is a third sector called the service sector also known as tertiary sector. Activities that fall under the service sector help in the development of the primary and secondary sectors by not directly producing a good but helping these sectors by activities that are an aid or a support for the production process.
For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these goods in godowns. We may also need to talk to others over telephone or
send letters (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communication, banking and trade are some examples of service or tertiary sector.
Since these activities generate services rather than goods, they promote primary and secondary sectors by providing expertise, finance, transportation, advertisement, etc.

Question. Explain disguised unemployment with two examples, one from urban areas and other from rural areas.
Answer : Disguised unemployment is a kind of unemployment in which some people look like being employed but are actually not employed fully. This situation is also known as hidden unemployment. It refers to a situation wherein more people are engaged in a work than required.
When the surplus workers from a rural area engaged in the activity or the work, are removed, the production remains unaffected.
In urban areas, there are many people who are employed. Their jobs do not suit their qualifications. Disguised unemployment can be seen in the service sector where painters, repair person, plumber, etc. are doing odd jobs. Many of them do not find work on a daily basis. Taking an example, there is a shop, which require only two persons for handling it, but if there are three servants and one owner to look after the shop, then this shows that two servants are in the situation of disguised unemployment.
In rural areas, disguised employment can be seen in the agricultural sector. Most often, all the members of a family are engaged on the same piece of land. If a few members are withdrawn, there will no effect on the production. So, the members who are withdrawn are in the situation of disguised unemployment.

Question. Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the National GDP?
Answer : The agricultural sector (Primary) is the largest employer in India. Nearly 51% of the
population is engaged in this section in one way or the other. However, its share in the national GDP is very less because of the following reasons.
• The average size of the land holdings is very low which results in low productivity per holder.
• Less use of modern technology and knowhow among the farmers to increase crop productivity.
• The systems of providing financing and marketing facilities have been insufficient since independence. The farmers are not able to get benefits fr6m the loan facilities and access to large markets.
• Absence of alternate income generating activities in rural areas give rise to disguised unemployment where efficient labour force is not used to its optimum.

Question. Why has the entire tertiary sector not grown in importance? Explain.
Answer : The entire tertiary sector has not grown in importance because of the following reasons:
• Peculiarity of skills in the tertiary sector: Highly-educated and skilled professionals only are able to get employment. Other engage themselves in low-paid jobs.
• High incomes: Higher incomes are available for the top-level administrative jobs only. Lowpaid jobs do not attract employment.
• No job security: Large number of workers are casual with irregular and low incomes barely to sustain livelihoods.

Question. Explain the interdependence of all three sectors giving examples from transportation system.
Answer : All the three sectors, primary, secondary and tertiary, are interdependent to each other in the following ways.
• Primary sector makes possible the extraction of natural resource like iron. This iron is then taken to the secondary sector for manufacturing through the transportation system like trucks.
The extraction process is supported by the financing and information technological institutions.
• It is through the secondary sector that the natural resource iron is changed into other forms through the process of manufacturing. Manufacturing again need the support of the service sector in the form of engineers, electricians, etc. Iron is changed into iron sheets and then into vehicles for transportation.
• Once manufactured, the vehicles are sold through various trading agencies. These vehicles are used for providing services in the tertiary sector and at the same time support the primary and the secondary sectors to carry out their processes.

Question. Explain with suitable examples which part of the service sector is not growing in importance.
Answer : The employment generation part of service sector is not growing in importance. The service sector in india employs different kinds of people. At one end, there are a limited number 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 persons cattle, owners transport drivers and electricians. These people barely manage to earn there living and yet they perform these services because no alternative opportunity for work are available for them.

LONG ANSWER TYPE QUESTION [5 MARKS]

Question. How can more employment opportunities be created in the rural areas?
Answer : The following steps can be taken to create more employment in the rural areas.
(a) Loans should be provided to small farmers by the government or bank to have more irrigation facilities like wells and tube wells in order to enable them to grow second crop.
(b) New dams and canals should be constructed. This will lead to more employment in the agricultural sector.
(c) Transportation and storage facilities must be improved to provide productive employment to not only the farmers but also to others in services like transport and trade.
(d) Banks should provide agricultural credit to the farmers for farming to improve.
(e) Industries such as dal mill, cold storage, honey collection centers and processing of vegetables should be set up in rural or semi-rural areas. Such industries will get raw materials from the rural areas and will create more employment opportunities for the rural people.
(f) More schools should be opened in rural areas. This will provide jobs to about 20 lakh people in the education sector.
(g) Health services should be improved by opening dispensaries and hospitals. This will create jobs for doctors, nurses and other staff.
(h) Tourism, regional craft industry and Information Technology should be encouraged by the government to create more employment opportunities. (any five)

Question. Explain how public sector contributes to the economic development of nation.
Answer : • Creation of infrastructure: Public sector promotes the economic development since it brings about creation and expansion of infrastructure and the infrastructure plays an important role in economic development.
• Generates financial resources: Public Sector provides for various employment opportunities since major part of public sector depends on manpower and higher employment opportunitiesimplies higher generation of financial resources for economic development.
• Contributes to HDI: Public sector majorly contributes to the Human Development Index since health and education industries come under the purview of public sector.
• Availability of goods: Public sector helps in availability of goods at moderate rates, which helps in maintaining financial security and thus helps in economic development.
• Provides encouragement: It provides encouragement to small, medium and cottage production units. It also strives for the creation of welfare state

Question. Explain with suitable examples how public sector contributes to the economic development of the nation.
Answer : • Creation of infrastructure: Public sector promotes the economic development since it brings about creation and expansion of infrastructure and the infrastructure plays an important role in economic development.
• Generates financial resources: Public Sector provides for various employment opportunities since major part of public sector depends on fhanpower and higher employment opportunities implies higher generation of financial resources for economic development.
• Contributes to HDI: Public sector majorly contributes to the Human Development Index since health and education industries come under the purview of public sector.
• Availability of goods: Public sector helps in availability of goods at moderate rates, which helps in maintaining financial security and thus helps in economic development.
• Provides encouragement: It provides encouragement to small, medium and cottage production units. It also strives for the creation of welfare state.

Question. In what ways can employment be increased in urban areas?
Answer : Urban unemployment is characterised by the existence of both open unemployment, which in turn is an offshoot of rural unemployment itself, and the educated unemployment. Main causes of urban unemployment are insufficient economic development, defective system of education and slow growth of industrialisation.
Urban unemployment can be increased in the following ways.
• Reform of the educational system to make it vocational at the school stage.
• Concrete action will have to be taken to promote decentralisation and dispersal of industrial activity.
• Promotion of small-scale industries and encouragement to self-employment by banks.
• Develop techniques of production that can be taken up with low capital intensity.
• Provision of infrastructure like railways, roads, hospitals and schools which will not only create employment opportunities but also contribute to development.

Question. Describe the provisions of the National Rural employment Guarantee Act 2005
Answer : National Rural Employment Guarantee Act 2005 aims to guarantee the right to work. It also aims at improving livelihood in rural areas.
The following are the provisions of the NREGA.
• Eligibility: Any Indian citizen who is above the age of 18 years and resides in the rural area is entitled to apply for work.
• Distance: Work is to be provided by the government in a radius of 5 km of the applicant if possible and in any case within the block. If the work provided is beyond 5 km of distance, extra travel allowance is to be paid.
• Wages: Workers under NREGA are entitled to the statutory minimum wage applicable to agricultural labourers in the state, until and unless the central government notifies a different wage. In whichever case, the minimum wage cannot go below ? 60 per day.
• Timely payment: Workers are to be paid weekly or in any case not later than a fortnight.
Payment of wages should be made directly to the person concerned on pre-announced dates.
• Entitlement: Any applicant is entitled to work within 15 days, for as many as he/she applied, subject to a limitataion of 100 days per year per household.

Question. What is GDP? Explain the process to calculate GDP.
Answer : The GDP, which is the Gross Domestic Product, is the value of all final goods and services produced within a country during a particular year. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. The GDP shows how big the economy is. In India, the mammoth task of calculating GDP is undertaken by the Central Government. This ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP. The GDP is usually calculated on annual basis. It includes private and public consumption, government outlays, investments and that occur within a defined territory.
GDP = C + G + I + NX
here, C = private consumption or consumer spending
G = the sun of government's spending
I = the sun of all country's business spending on capital
NX = the nation total net exports calculator as total exports minus imports (NX = Export - Imports)

Question. What is Planning Commission? What have been its findings?
Answer : Planning Commission is a body set up by the Central Government that conducts economic survey and chalks out programmes and policies to tackle economy-related issues.
The following have been the findings of the Planning Commission.
(a) 20 lakh jobs need to be created in the education sector alone.
(b) There is a dire need to improve health standards by appointing doctors, nurses and health workers, especially in the rural areas.
(c) Development of income generating potentials like tourism, regional craft, etc. in the rural areas through proper planning. It has been said that if tourism as a sector is improved, every year we can give additional employment to more than 35 lakh people.
(d) Development of IT sector, which could generate employment to lakhs of people in the urban areas.

Question. Give five reasons for the rising importance of the tertiary sector in production
Answer : Over the forty years, between 1970 and 71, and 2010 and 11, while production in all the three sectors has increased, it has increased the most in the tertiary sector. The following factors are making the tertiary sector important in India.
• Basic services: 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 and insurance companies, are required. These can be considered as basic services. In a developing country, the government has to take responsibility for the provision of these services.
• Development of primary and secondary sector: The development of agriculture and industry leads to the development of services such as transport, trade and storage. The greater the development of the primary and secondary sectors, the more would be the demand for such services.
• Rise in income levels: As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools and professional training centres. We can see this change quite sharply in cities, especially in big cities.
• Rise in information technology: 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.
• Globalization: Due to globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance.

Question. What is the role of government in public sector?
Answer : The following points sum up the role of government in public sector.
(a) Welfare of the people: The modern state is a welfare state that looks after the interests of its citizens. People pay different types of taxes and expect their representatives or the government to follow policies for their welfare. Services like railways, posts and telegraphs are run by the government for the welfare of the people.
(b) Large expenditure: Some activities like construction of roads need large sums of expenditure that cannot be borne by the private sector. So, the government takes up such activities in the interest of the people in a democracy.
(c) Support of the government: There are some activities that need support of the government in the form of subsidy such as provision of foodgrains for the poor through ration shops. The government buys wheat, paddy etc. at a higher price but sells at a lower price at ration shops.
(d) Duty of the government: It is duty of the government to raise the living standard of the people.
It should make arrangements for quality education and health services in order to take care of the poorest and most ignored regions of the country through increase in expenditure in such areas.
Thus, the government takes up various activities and spends a lot of expenditure on them.

Question. What is unorganized sector? Describe the working procedure of this sector.
Answer : An unorganized sector is a sector that is not registered by the government. It is characterized by small and scattered units. Being outside the control of the government, no rules and regulations are followed regarding the employment and working conditions.
This sector includes a large number of people who are employed on their own doing small jobs such selling things on the street or doing repair work. Working procedure in unorganized sectors is as follows.
• The unorganised sector is characterised by small and scattered units, which are largely outside the control of the government.
• There are rules and regulations but these are not followed.
• Jobs here are low-paid and often not regular.
• The condition of workers in unorganized sector is not good or stable.
• There is no provision for overtime, paid leave, holidays, leave due to sickness, etc.
• Employment is not secure. People can be asked to leave without any reason. When there is less work, such as during some seasons, some’people may be asked to leave.
• A lot also depend on the whims of the employer.
• This sector includes a large number of people who are employed on their own, doing small jobs such as selling things on the street or doing repair work

Question. Give five reasons for the rising of the tertiary sector in India.
Answer : Over the forty years, between 1970 and 71, and 2010 and 11, while production in all the three sectors has increased, it has increased the most in the tertiary sector. The following factors are making the tertiary sector important in India.
• Basic services: 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 and insurance companies, are required. These can be considered as basic services. In a developing country, the government has to take responsibility for the provision of these services.
• Development of primary and secondary sector: The development of agriculture and industry leads to the development of services such as transport, trade and storage. The greater the development of the primary and secondary sectors, the more would be the demand for such services.
• Rise in income levels: As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools and professional training centres. We can see this change quite sharply in cities, especially in big cities.
• Rise in information technology: 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.
• Globalization: Due to globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance.

Please click on below link to download CBSE Class 10 Economics Sector of Indian Economy Worksheet Set B