Let’s Work These Out
On Page 21
Question 1. Complete the table to show how sectors are dependent on each other.
Answer:
Examples of Economic Activities
| Example | What Does Thi show |
| Imagine what would happen if farmers refuse to sell sugarcane to a particular sugar mill. The mill will have to shut down. Imagine what would happen to cotton cultivation if companies decide not to buy from the Indian market and import all cotton they need from other countries. Indian cotton cultivation will become less profitable and the farmers may even go bankrupt if they cannot quickly switch to other crops. Cotton prices will fall. Farmers buy many goods such as tractors, pump sets, electricity, pesticides and fertilizers. Imagine what would happen if the price of fertilizers or pump sets go up. Cost of cultivation of the farmers will rise and their profits will be reduced. People working in industrial and service sector need food. Imagine what would happen if there is a strike by transporters and lorries refuse to take vegetables, milk, etc from rural areas. Food will become scarce in urban areas whereas farmers will be unable to sell their products . | This is an example of the secondary or industrial sector being dependent on the primary. This is an example of primary sector which is dependent on secondary sector. This is an example of the primary sector i.e., agriculture being dependent on the secondary sector, i.e., industry. This is an example of the primary sector being dependent on the tertiary sector. |
Question 2: Explain the difference between Primary, Secondary, and tertiary sectors using examples other than those mentioned in the text.
Answer:
- Primary Sector : It is connected with extraction and production of naural resources e.g mining.
- Secondary Sector : It is concerned with the processing of materials which have already been extracted at the primary stage e.g., making jewellery from gold.
- Tertiary Sector: It is concerned with providing support services to primary and secondary sector e.g., insurance .
Question 3. Classify the following list of occupations under primary, secondary and tertiary sectors.
| Tailor Basket weaver Flower cultivator Milk vendor Fishermen Priest Courier | Workers in Match Factory Money lender Gardener Potter Bee-keeper Astronaut Call centre employee |
Answer:
| Primary Sector | Secondary Sector | Tertiary Sector |
| Flower cultivator Fishermen Gardener Potter | Basket weaver Workers in match factory Bee-keeper | Tailor Milk vendor Priest Courier Money lender Astronaut Call centre employee |
Question 4. Students in a school are often classified into primary and secondary or junior and senior. What is the criterion that is used. Do you think this is a useful classification? Discuss.
Answer : Students are often classified into primary and secondary or junior and senior. They are classified on the basis of the class in wh ich they study. Yes, I think this is a useful classification because we cannot classify all of them on the basis of age.
On Page 23
Question 1. What does the history of developed countries indicate about the shifts that have taken place between sectors?
Answer : The history of developed countries indicates that there bas been a major shift from the secondary sector, i.e., manufacturing and industries, to the tertiary sector, i.e., services. The service sector has become the most important sector of the economy and most of the employed peop le in the developed countries are employed in this sector.
Question 2. Correct and arrange the important aspects for calculating GDP from this jumble.
To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.
Answer : We count the value of all those final goods and services that were produced in the particular year.
On Page 24
Answer the following questions by looking at the graph
Primary, Secondary and Tertiary Sectors in India
Graph 1 shows the production of goods and services in the three sectors. This is shown for two years, 1973 and 2003. You can see how the total production has grown over the thirty years.
Question 1. Which was the largest producing sector in 1973?
Answer : Primary sector.
Question 2. Which is the largest producing sector in 2003?
Answer: Tertiary sector.
Question 3. Can you say which sector has grown the most over, thirty years?
Answer : The tertiary sector has grown the most over thirty years.
Question 4. What was the GDP of India in 2003?
Answer: The total GDP was 2,10,000 crore rupees.
On Page 27
Question 1. Complete the table using the data given in Graphs 2 and 3 answer the question that follows.
Table 2.2 Share of Primary Sector in GDP and Employment
| 1973 | 2000 or 2003 | |
| Share in GDP Share in Employment |
What are the changes that you observe in the primary sector over a span of thirty years?
Answer : Graph 2 : Share of Sectors in GDP (%)
Share of Primary Sector in GDP and Employment
| 1973 | 2000 or 2003 | |
| Share in GDP Share in Employment | 45% 74% | 25% 61% |
What are the changes that you observe in the primary sector over a span of thirty years?
Answer : Graph 2 : Share of Sectors in GDP (%)
Share of Primary Sector in GDP and Employment
| 1973 | 2000 or 2003 | |
| Share in GDP Share in Employment | 45% 74% | 25% 61% |
While the share in GDP has reduced drastically from 45% to 25% , the share of employment has reduced by a much lesser amount, from 74% to 61%.
Question 2. Choose the correct answer
Underemployment occurs when people
- do not want to work.
- are working in a lazy manner.
- are working less than what they are capable of doing.
- are not paid for their work.
Answer : 3
Question 3. Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Answer : In India, both the secondary and tertiary sectors are increa sing at the expense of the primary sector, but the increase in tert iary sector is more. For India to become a strong industrialised nation, the secondary sector should have increased more, but this is not happening due to variety of reasons.
Question 4. Why should we be worried about underemployment?
Answer : We should worry about underemployment as due to this, the earning capacity of a person is reduced, resulting in a poors tandard of living. Ultimately this can also lead to poverty.
On Page 29
Question 1. Why do you think NREGA 2005 is referred to as ‘Right to Work’?
Answer : In NREGA, if the government fails in its duty to provide employment, it will give unemployment allowances to the people so it is, in effect giving the persons the right to work.
Question 2. Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up und er this Act that would also increase the income of people? Discuss.
Answer : Many activities under MGNREGA can be taken up including –
- Water conservation and water harvesting.
- Drought proofing by digging tubewells.
- Constructing irrigation canals for crops.
- Making provision of irrigation facility on the lands of disadvantaged sections SCs and STs and other.
- Renovation of traditional water bodies ( e.g ., tanks).
- Land development for agriculture, horticulture, etc.
- Constructing check dams for flood control and protection.
- Construction of roads for improving rural connectiv ity to provide all-weather access to the villages.
Question 3. How would income and employment increase of farmers were provided with irrigation and marketing facilities?
Answer:
- Farmers require to transport their products to a nearby town for sales. If the government invests some money in transportation and storage of crops or makes better rural roads so that mini trucks can reach everywhere, this activity can provide productive employme nt to not just farmers but also others such as those in services like transport or trade.
- Suppose a new dam is constructed and canals are dug to irrigate the agricultural land, it could lead to a lot of employment generation within the agricultural sector itself and in reducing the problem of underemployment, besides increasing the crop yield.
Question 4. In what ways can employment be increased in urban areas?
Answer: To increase employment in urban areas, we will need to carry out the following tasks –
- Invest in basic industries which provide mass employment.
- Improve local and inter-city transportation so that more people can be employed to work in the transportation industry.
- Increasing vocational education courses, so that people educated for a vocation get jobs easily.
- Give incentives for industry in urban areas to increase their capacity.
On Page 31
Question 1. Look at the following examples. Which of these are unorganised sector activities?
- A teacher taking classes in a school.
- A headload worker carrying a bag of cement on his back in a market.
- A farmer irrigating her field.
- A doctor in a hospital treating a patient.
- A daily wage labourer working under a contractor.
- A factory worker going to work in a big factory.
- A handloom weaver working in her house.
Answer:
2. A headload worker carrying a bag of cement on his back in a market.
3. A farmer irrigating her field.
5. A daily wage labourer working under a contractor.
7. A handloom weaver working in her house
Question 2. Talk to someone who has a regular job in the organised sector and another who works in the unorganised sector. Compare and contrast their working conditions in all aspects.
Answer:
Comparison of Working Conditions in the Organised and Unorganised Sectors
Question 3. How would you distinguish between organised and unorganised sectors? Explain in your own words.
Answer: Distinctions between organised sector and unorganised sec tor are as follows –
Question 4. The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.
Table 2.3 Workers in Different Sectors (in Millions)
- What is the percentage of people in the unorganised sector in agriculture?
- Do you agree that agriculture is an unorganised sector activity? Why?
- If we look at the country as a whole, we find that …..of the workers in India are in the unorganised sector. Organised sector employment is available to only about ….. of the workers in India.
Answer :
- It is not possible to answer this question, as the proportion of agriculture sector people out of the total number of people in unorganised sector is not given.
- Yes, agriculture in India is an activity of the unorganised sector, because
- Most of the workers working in agriculture are not paid on regular basis.
- Agriculture sector faces the problem of underemployment.
- They are not given appointment letters, there is no security of job and there is no system of leaves or weekly offs.
- Most of the farmers are dependent on moneylenders and relatives for their loan requirements.
- 93%, 7%
Exercises
Question 1. Fill in the blanks using the correct option given in the bracket.
- Employment in the service sector ……… increased to the same extent as production. (has/has not).
Answer: has not.
2. Workers in the ……… sector do not produce goods. (tertiary/agricultural)
Answer : tertiary.
3. Most of the workers in the ……… sector enjoy job security . (organised/unorganised)
Answer: organised.
4. A ……… proportion of labourers in India are working in the unorganised sector. (large/small)
Answer : large.
5. Cotton is a ……… product and cloth is a ……… product. (natural/manufactured)
Answer : natural, manufactured
6. The activities in primary, secondary and tertiary sect or are ………. . (independent/interdependent)
Answer : interdependent.
Question 2. Choose the most appropriate answer –
(a) The sectors are classified into public and private on the basis of-
- employment conditions.
- the nature of economic activity.
- ownership of enterprises.
- Number of workers employed in the enterprises.
Answer: 3.
(b) Production of a commodity, mostly through the natural process, is an activity in ……… sector.
- primary
- secondary
- tertiary
- information technology
Answer : 1
(c) GDP is the total value of ……… produced during a particular year.
- all goods and services.
- all final goods and services
- all intermediate goods and services
- all intermediate and final goods and services
Answer : 2
(d) In terms of GDP the share of tertiary sector in 2003 is –
- between 20 to 30%
- between 30 to 40%
- between 50 to 60%
- 70 %
Answer: 3.
Question 3. Match the following –
Answer : 1. (d), 2. (c), 3. (e), 4. (a), 5. (b)
Question 4. Find the odd one out and say why.
- Tourist guide, dhobi, tailor, potter.
Answer : The potter is the odd one out as he is a secondary sector workman whereas the others are tertiary sector workers.
2. Teacher, doctor, vegetable vendor, lawyer.
Answer : The vegetable vendor is the odd one, because he is often unskilled while the others are skilled workers.
3. Postman, cobbler, soldier, police constable.
Answer : The cobbler is the odd one, because he works in the unorganised sector.
4. MTNL, the Indian Railways, Air India, Sahara Airlines, the All India Radio.
Answer : The Sahara airlines is the odd one because it is in the private sector.
Question 5. A research scholar looked at the working people in the city of Surat and found the following –
Complete the table. What is the percentage of workers in the unorganised sector in this city?
Answer : In the unorganised sector, there are 20+50 = 70 % people
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, secondary and tertiary is useful on account of the information, it provides on how and where the people of a country are employed. 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 three 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 the GDP? Could there be other issues which should be examined? Discuss.
Answer : For each of the sectors mentioned we should focus on employment and GDP. This is because growth in GDP and full employment are common goals of Five Year Plans and they also determine the size of a country’s economy. A focus on employment and GDP helps us to calculate and monitor important factors like per capita income, productivity, changes in employment rate and contribution to GDP by the three sectors of economy and thus, take necessary steps required for the improvement of the country’s economy as a whole.
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 class ify them? Explain your choice.
Answer :
Some Samples of Work People Do and Their Classification
We classify them according to the nature of activity and whether they are working in organised or unorganised sector. This is useful on account of the information, it provides on how and where the people are employed.
Question 9. How is tertiary sector different from other sectors? Illustrate with a few examples.
Answer : The tertiary sector is different from the other two sectors because the other sectors produce goods but this sector does not produce goods by itself. Instead, the tertiary sector activities help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. e.g. , transport, communication, storage, banking, insurance, trade activities etc. For this reason, this sector is also known as the service sector.
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 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. In such a situation more people are engaged in work than required.
For example in rural areas, this type of unemployment is generally found in agricultural sector. e.g. , in a family of nine people who are all working in the same agricultural plot, even if four of them are withdrawn, there is no reduction in the output from the plot. So, these four people are actually disguisedly employed.
In urban areas, this type of unemployment can be seen mostly i n service sector. An example is of a family, whose all members are working in one shop or a small business, but which can actually be managed by a fewer number of members of the family.
Question 11. Distinguish between open unemployment and disguised unemployment.
Answer: Open Unemployment When a country’s labour force does not get opportunities for adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector ( e.g. , when workers of a factory are laid off due to its closure) and landless agricultural labourers in rural areas.
Disguised Unemployment This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required. This type of unemployment is generally found in unorganised sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.
Question 12. Tertiary sector is not playing any significant role in the development of the Indian Economy.” Do you agree? Give reasons in support of your answer.
Answer: No, I do not agree with this. The reasons are as follows –
- In terms of GDP, this sector emerged as the largest producing sector in India in 2003, surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35%, which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it has increased the most in tertiary sector.
- In terms of employment also, the rate of growth of employment in tertiary sector between 1973 and 2000 was nearly 250%. This growth was much less in the primary sector.
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 kinds of people –
- In terms of GDP, this sector emerged as the largest producing sector in India in 2003, surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35%, which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it has increased the most in tertiary sector.
- In terms of employment also, the rate of growth of employment in tertiary sector between 1973 and 2000 was nearly 250%. This growth was much less in the primary sector.
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 kinds of people –
a) People in support services that may directly help in the production of goods. e.g. , people involved in transportation, storage, communication, finance, etc.
(b) People in such services that may not directly help in the production of goods, e.g. , teachers, doctors, barbers, repairmen, lawyers etc. They may be termed as ancillary workers i.e., those who give services to the primary service providers and others.
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 unorganised sector because –
- There are no fixed number of working hours. The workers normally work 10-12 hours without being paid overtime.
- They do not get other allowances apart from the daily wages .
- Government rules and regulations to protect the labourers are not followed in their case.
- There is no job security. They can be asked to leave the job at any time.
- Jobs are poorly paid. The workers in this sector are generally illiterate, ignorant and unorganised. So they are not in a position to bargain or secure good wages.
- Being poor, they are always heavily in debt. So, they can be easily made to accept lower wages.
Question 15. How are the activities in the economy classified on the basis of employment conditions?
Answer:
They are classified into two types –
- Organised
- Unorganised
The organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. 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 Act etc. Examples are reliance Industries Ltd, Tata Motors etc.
The unorganised sector contains enterprises not registered by the government. The unorganised sector is characterised by small and scattered units which do not follow proper rules for employment or give any leaves or other benefits. Examples are casual workers in construction, in shops, garages, etc.
Question 16. Compare the employment conditions prevailing in the organised and unorganised sector.
Answer: Employment conditions under –
Question 17. Explain the objectives of implementing the NREGA 2005.
Answer:
- This scheme targets the scheduled castes, scheduled tribes and the poor women, who suffer from poverty.
- To provide livelihood to the people below the poverty line, this scheme guarantees 100 days of wage employment in a year to every rural/household in the country.
- The gram panchayat after proper verification will register households. The job card is the legal document that entitles a person to ask for Sectors of the Indian Economy 213 work under the act and to get work within 15 days of the demand for work, failing which an unemployment allowance would be payable.
Question 18. Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer:
Question 19. Discuss and fill the following table giving one example each from your area.
Question 20. Give and few examples of public sector activities and explain why the government has taken them up.
Answer : Three examples are –
- Railways The government has taken this up for the following reasons –
- Only the government can invest large sums of money on a pub lic project with long gestation period.
- To ensure and provide transportation at cheap rates.
- Electric Power Generation by NTPC The government has taken this up to provide electricity at a reasonable rate to consumers.
- AIIMS To provide quality health services at a reasonable rate was the main purpose of the government to start this, besides med ical education.
Question 21. Explain how public sector contributes to the economic development of a nation.
Answer : It contributes in the following ways –
- 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 in dustries as ancillaries.
- It ensures easy availability of goods at moderate rates.
- It contributes to community development i.e. , to the Human Development Index (HDI) via health and educational services.
Question 22. he workers in the unorganised sector need protection on the following issues–wages, safety and health. Explain with examples.
Answer: The unorganised sector is characterised by small and scattered red units which are largely outside the control of the government. There is no provision for overtime, paid leave, holidays, leave due to sickness. Here employment is subject to high degree of insecurity. A large number of people doing small jobs such as selling on the street or doing repair work comes under the unorganised sector.
Due the these conditions of work, they need, protection on th e following issues –
- Wages They are low and not regular. There is no provision for overtime, paid leave, etc.
- Safety Constructiion workers can get injured while working and the y need to work under safe conditions.
- Health Long working hours and unhygienic working environment affect the health of the workers adversely.
Question 23. A study in Ahmedabad found that out of 1500000 workers in the city, 1100000 worked in the unorganis ed sector. The total income of the city in this year (1997–1998) was ` 60000 million. Out of this ` 32000 million was generated in the organised sector. Present this data as a table what kind of ways should be thought for generating more employment in the city .
Answer: Table showing study of employment and income in Ahmedabad.
Ways of generating more employment are-
- To set up industries that process vegetables and agricul tural produce like potato, rice, wheat, fruits etc which can be sold in outside market.
- To promote and locate industries and services in outer fringes of the city where a large number of people may be employed.
Question 24. The following table gives the GDP in rupees (crores) by the three sectors-
Ways of generating more employment are –
- To set up industries that process vegetables and agricul tural produce like potato, rice, wheat, fruits etc which can be sold in outside market.
- To promote and locate industries and services in outer fringes of the city where a large number of people may be employed.
Question 24. The following table gives the GDP in rupees (crores) by the three sectors –
Ways of generating more employment are –
- To set up industries that process vegetables and agricul tural produce like potato, rice, wheat, fruits etc which can be sold in outside market.
- To promote and locate industries and services in outer fringes of the city where a large number of people may be employed .
Question 24. The following table gives the GDP in rupees (crores) by the three sectors.
- Calculate the share of the three sectors in GDP for 1950 & 2000 .
- Show the data as a bar diagram similar to graph 2 in the chapter.
- What conclusions can we draw from the bar graph.
Answer: 1. (a) Share of sectors in GDP for 1950
(ii) Above data as a bar diagram
(a) Share of primary sector in GDP has decreased.
(b) Share of secondary sector in GDP has increased.
(c) Share the tertiary sector in GDP has increased.
This shows that the economy is moving on the path of developme nt as share of secondary and tertiary sector in GDP has increased in 2000 as compared to 1950.