CLASS X_ECONOMICS-2 SECTORS OF INDIAN ECONOMY 1. Distinguish between primary, secondary and tertiary activities with examples. ‘Ans: Based on the nature of activities, economic activities are divided into three sectors-Primary, Secondary and Tertiary sectors. Primary sector activities involve the extraction of resources from the nature. Itrefers to the utilization of earth’s resources such as land, water, vegetation, minerals etc. It includes activities like hunting, gathering, agriculture, forestry fishing, mining and quarrying etc. It is also regarded as agricultural sector. It provides base to all other sectors of the economy. Secondary sector activities involve transforming raw materials into valuable finished goods. It is therefore concerned with manufacturing, processing and construction of Industries. Tertiary sector activities include production of services and exchange. They provide service to other two sectors. Hence this sector is also termed as Service Sector. Banking, transportation, communication, teaching, etc. are tertiary sector activities. 2. Howare the three sectors of economy interdependent? Explai Ans: Three sectors of economy, primary, secondary and tertiary sectors are interdependent in the following ways. It is through primary activities that secondary and tertiary activities came into being. Primary sector provides raw materials to the secondary sector and in turn secondary sector provides inputs “ike machines, fertilizers, HYV seeds to primary sec‘or. Both primary and secondary sectors require services like finance, transportation ana WiforMmaWOn TORY te tertiary sector. | Secondary sector produces goods and machines that are also used by the tertiary sector. Tertiary sector provides support activities to primary and secondary sectors in the form of advertisement, importance of the tertiary sector. Ans: Tertiary sector is the service sector that provides support to the primary and secondary sectors and to itself. Between 1970-71 and 2010-11 production in tertiary sector has increased the most than the other two sectors. Because— 1)In any country , the government has to take responsibility of providing the basic services like hospitals, | schools, police stations, courts, defence, Banks and insurance companies etc. to its citizens. ' 2) As the primary and secondary sectors develop, they demand more and more services such as transport, trade, storage, etc. | 3} As income level rise certain sections of people start demanding more and more services like shopping, tourism, private schools, private hospitals etc, 4) Over the period of time certain new services such as those based on information and communication technology have become important and essential. 5) Due to Globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance. Gf4, Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the Gop? ‘Ans: The Primary sector is the largest employer in India. ‘About 48% of the total population is engaged in primary sector in one or other during 2012-13. It contributes to 12%of the country’s GDP ‘Thus it contributes only a quarter of the GDP because.... 1) The use of outdated means of production reduced the product 2) Farmers in India possess very small Land holdings, which cannot produce the desired output. 3) Primary sector lacks modern irrigation facilities. Dependence on monsoons’ adds the problem. 4) Thus the primary sector experience under employment or disguised unemployment. 5) The government has not been to provide an effective system of financing and transportation in the rural areas. 6) Difficulty in accessing the marketing facilities. 7) Absence of alternative employment in the rural areas. 5. Whats disguised unemployment? Explain with an example each from urban and rural areas. ‘Ans: Disguised unemployment is a situation in which people are made to work less than their potentials. This type of unemployment is generally found in unorganised sector, where either the work is constantly not available or more than required people are employed for a work. For example farmers with small holdings, petty shop keepers in the cities experience disguised unemployment. 6. How can more employment opportunities be created in the rural areas? i) More and more irrigational facilities like wells, tube wells, dams and canals should be constructed to enable the farmers to grow more. ji) Banks should provide agricultural credit to the farmers for farming to improve. iil) Transportation and storage facilities must be improved. Iv) Industries which make use of raw materials available in the rural areas must be set up. v) Setting up of more schools, hospitals will provide lakhs of job opportunities. vi) Tourism, regional craft industries and Information Technology should be encouraged by the government. ;ncial assistance or training programs must be arranged for the rural people to start self employment. activities. 7.__ Distinguish between organized and unorganized sectors. ‘ORGANISED SECTOR UNORGANISED SECTOR “It has formal processes and procedures to be “There are no such formal processes and procedures followed. to be followed. ‘Rules and regulations are followed here. “Rules and regulations are not followed here. *working conditions are favourable. *working conditions are not favourable. “workers have job security. *working hours are fixed here. *Workers get regular monthly salary. “workers get benefits like provident fund, paid leave, medical benefits etc. ‘workers have no job security. ‘working hours are not fixed here. workers get daily wages. “workers do not get benefits like provident fund, paid leave, medical benefits etc.8. How can the workers in the unorganized sector be protected? ‘Ans; Workers in the unorganized sector are low paid, find irregular work, and enjoy no facilities. ‘They aie exploited in different ways and hence there is a need for their protection. The following steps can be taken to provide protection and support to them. 1) Small farmers in the unorganized sector should be supported by the government in procuring seeds, agricultural inputs, credit, storage and marketing facilities. In Urban areas, Government should help small scale industries in procuring raw materials and marketing goods. Legistations should be passed to protect the interest of these workers. iv) Minimum Wage Act should be enforced strictly. v) Steps should be taken to regulate working hours and to provide medical facilities. vi) Strict actions should be taken against those employers who discriminate on account of caste, creed and gender. 9._ Distinguish between public and Private sectors with examples. Public sector Private sector |*The government owns most of the assets and * Private individuals or companies own the assets provides all the services. and delivery of services. l-this sector aims at increasing the facilities for public | *This sector aims at earning maximum profits. | wettare, = | lethe decisions regarding production and distribution | *T The decisions regarding production and ~ are taken by the government. distribution are taken by the owners of the company. -This sector provides basic facilities like education, _ * This sector provides consumer goods to the health, food and security to people. people. lexamples-India Railway, Post Office etc. Examples-TISCO, Reliance Industries Limited etc. * 10. _ Explain how public sector contributes to economic development of a nation. ‘Ans: * Public Sector creates rapid economic development through creation and expansion of infrastructure. * Itcreates employment opportunities. *It ensures equality of income and wealth and thus, a balanced regional development. ‘it encourages the development of small, medium and cottage industries. *I ensures easy availability of basic facilities to all at moderate rates. * Itspends large sums for the welfare of the people. *It tries to raise the living standard of the people in the economy. - EXTRA READING 11. Distinguish between economic and non economic activities. 12. Write a short note on the historical shifts in the sectors of economy. 13. Through which Act Right to Work implemented? 14, Write a short note on NREGA.OBJECTIVE TYPE QUESTIONS 4. GDP stands for Gross Domestic Product. What does it show? Pick up the correct statement given below: : (a)If shows how big is the economy of a country in a given year in terms of its total output. (b) It shows what the total product of a country in a given year without counting the country’s total resources. (c) It shows the number of people involved in production in a particular year. (d) It shows the total value of trade trans-actions of a country in a particular year. 2. Employment figures of a country are based on data collected from 5-yearly survey on employment and unemployment. Which organization conducts this survey? (a) NSSO—National Sample Survey Organization (b) NREGA 2005—National Rural Employment Guarantee Act, 2005 {c) ILO — International Labour Organization _(d) Census of India 3. Identify the natural product from the list of items given below: {a) Textile (b) Wheat flour (c) Cotton (d) Tomato sauce ~ 4, Which of the following examples does not fall under unorganized sector? a) A farmer irrigating his field. (b) A daily wage labourer working for a contractor. (c) A doctor in a hospital treating a patient. “ (d) Ahandioom weaver working on a loom in her house 5. Identify the correct answer from the alternatives provided. Both Tisco and Reliance Industries are owned by : (a) The government (b) Private company (c) A cooperative society (d) Jointly by private companies and the govt. 6. NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed .. ‘employment in a year in many districts of India. What is the correct number of days? (a) 200 days(b) 100 days (c) 30 days _(d) 60 day 7. Choose one correct statement from the followir:g: Medeor a : = (a) when people are not willing to work. (b) when people are working slowly. (c) when people are working less than what they are capable of doing. (d) when people are not paid for their Job. 8. Which sector has emerged as the largest producing sector in India. Select one from the following alternatives: (a) Secondary sector _(b) Tertiary sector (c) Primary sector (d) Science and Technology sector 9. Where will you find the disguised unemployment most? Select the correct option from those given below: (a) Among agricultural workers working for small farm lands (b) Among part-time industrial workers (c) In most of the government offices (4) In big private companies 10. How do big private companies contribute in the development of a nation? (2) By increasing the demands for their products through advertisements. (b) By increasing their profits. (c) By increasing productivity of the country in the manufacturing of industrial goods. (d) By providing private hospital facilities for the rich. 11. Tertiary sector is also called 42. Communication and banking come unde! 43. Cotton cultivation falls under ......... sector. 14. In the public sector, the .. ‘owns most of the assets and provides all services. 15. In the Private sector, the ownership lies in the hands of 16. Most of the jobs are and ... paid in the unorganised sector. 17. Protection and support to the unorganised sector is needed for both .. levelopment. 18. Bankers and truck drivers belong to .. . days of sector. 1. Sector of the economy. 36, 49