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Sectors of The Economy CH 2

GDP is the total value of final goods and services produced within a country during a specific time period, and in India, its measurement is managed by a central government ministry with assistance from various state departments. Disguised unemployment occurs when more workers are employed in an activity than necessary, leading to underemployment, particularly in agriculture. The document also discusses the organized and unorganized sectors, highlighting their differences in terms of registration, employment terms, and regulation.
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0% found this document useful (0 votes)
15 views9 pages

Sectors of The Economy CH 2

GDP is the total value of final goods and services produced within a country during a specific time period, and in India, its measurement is managed by a central government ministry with assistance from various state departments. Disguised unemployment occurs when more workers are employed in an activity than necessary, leading to underemployment, particularly in agriculture. The document also discusses the organized and unorganized sectors, highlighting their differences in terms of registration, employment terms, and regulation.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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What is GDP ?

Who is responsible for


collecting data for the GDP in India ?
[CBSE Comptt. (0) 2008, 14,15]
. It is the value of final goods and services
produced within a country during a given
time period. In India, the mammoth task of
measuring the GDP is undertaken by a central
government ministry. This ministry, with the
help of various government departments of all
the Indian States and Union Territories, collects
information relating to the total volume of goods
and services and their prices, and then estimates
the GDP
What is disguised unemployment ?
Explain. [CBSE 2010 (D), Sept. 2010]
Or
Howfar is it correct to say that disguised
unemployment can also be called under
employment ? Explain. [CBSE 2012]

31-E
goods and the
Q.8. Distinguish between final
Or intermediate goods.
employment ? Explain with
What is under [CBSE Sept. 2013] Ans.
an example.
are Final goods Intermediate goods
Ans. (i) It is a situation
in which more workers (i) The goods which are
required. The are
() The goods whichfinal
working in an activity than used up in producing
such an used either for
people who are actually engaged in consumption or for the final goods and
but are not
activity appear to be employed, capital formation.
services.

fuly employed.
cultivation of one (i) The value of final (ii) The value of inter.
(i) For example, if for the mediate goods is
hectare land, 10 workers are required, goods is included in not included in the
but instead of 10 workers, 15 workers are the national income.
national income.
working. In this case, workers are disguised
unemployed. In such cases, even if the (ii) Example, television, (ii) Example, flour.
surplus workers are removed, the production bread or bakery cotton, etc.
will not suffer.
products, etc.
(ii) This type of unemployment is basically found Distinguish between the organised
and the
in agriculture. Q.9.
called unorganised sector.
(iv) This type of unemployment can also be [CBSE Sept. 2010, 2012, 2015,
underemployment because workers perform
below their productivity level. 2018(0), 2024 (D), Comptt. 2025 (0)]
Q.6. What is an organised sector ? Explain. Ans.
[CBSE 2009 (0)] Organised sector Unorganised sector
Or (i) The sector is (i) The sector is not
registered by the regis-tered by the
Why is organised sector preferred by the
employees ? Explain. [CBSE 2020 (D)] government. govermment.

Ans. (i) An organised sector covers those enterprises (i) The terms of| (i) The terms of employ
or places of work where the terms of employment are ment are not regular
employment are regular and, therefore, regular.
people have assured work. (iii) The sector is governed (ii)The sector is not gover
(ii) They are registered by the government by various lawssuch ned by any act.
and have to follow its rules and regulations as the actories Act,
which are given in various laws such as the Minimum Wages Act,
Factories Act, Minimum Wages Act, Payment etc.
of Gratuity Act, Shops Act, etc. (iu) This sector includes (iv) This sector includes
(ii) They are called organised because they have banks, hospitals, large number of
apeople
Some prOcesses and procedures. schools, etc. who are

Q.7. What is an unorganised sector? Explain. employed on their


Ans. i) An unorganised sector is a sector which not Own doing small jobs,
etc.
registered by the government.
(ii) The unorganised sector is characterised Q.10. What are the objectives of MGNREGA
2005?

[CBSE Sept. 2010, 2011, 2012, 2015]


by small and scattered units which are largely
outside the control of the government. Ans. () This scheme targets the Scheduled Castes,
who
(ii) There are rules and regulations, but these are Scheduled Tribes and the poor women,
not followed. suffer from poverty.
(iv) Workers are not provided any overtime, (i) To provide livelihood to the people below the
days
holidays, sick or other leaves. Workers can poverty line, this scheme guarantees 100rural
be asked to leave without any reason. There of wage employment in a year to every

is no limit for working hours. household in the country.


BAG 32-E AERH EVERGREEN Self-Study in Social|
S c i e n c e - 1 0
(ii) Under this scheme, the
after proper Gram Panchayat
verification
households, and issue job will register Q.13. Enumerate the various causes of rural
households. The job cardcardsisto theregistered Ans. ()unemployment in ndia. (CBSE 20131
Lack of skill and education : The
document that entitles a legal
suork under the Act person to ask for most important factor responsible for rural
15 days of the and to get work within unemployment is lack of education and skill.
which an demand for work, failing (1) Domination of primary sector : Most
be payable.
unemployment allowance would of the people of rural areas are involved
t1. Distinguish between the in primary activities. The possibility of
private sector. public and the unemployment in primary sector is rnore.
[CBSE 2020 (D), 2024 (D), (i) Lack of Industrialization : Even after
Or
2025 (0)) more than 60 years of independence more
State any four features of than 80% of the people are dependent on
public and agriculture for their livelihood. Chances of
private sector. [CBSE 2014, 2015]
Or disguised unemployment are very high in
agriculture.
What are the two sectors of
economic Q.14. How can employment opportunities be
activities on the basis of the ownership of
generated in the tourism and information
resources? Explain. and technology centres ? [CBSE 2013]
Ans. (i) Government should encourage tourism by
Public sector Private sector providing more facilities to the tourists.
:It is controlled and () It is controlled and (ii) Medical treatment in India is very cheap as
managed by the managed by an compared to developed nations.
governmnent. individual or agroup (ii) Vocational training should be merged in main
of individuals. stream education pattern.
The main aim of| () The main aim of (iv) Research and development work should be
the sector is public the sector is tO earn promoted.
welfare. maximum profits. (u) Government should set up more technology
parks.
Ihe sector provides (ii) The sector provides Q.15. Economic activities, though are grouped
Consumer goods to
basic facilities like into three different categories, are highly
education, health, the people. interdependent. Justify the statement by
food and security to giving two examples.
the people. Ans. Economic activities, though, are grouped into
example, the
example. thel(iu) For three different categories, but all these sectors
0r Reliance, TISC0,
Indian Ralways, the or acivities are highly interdependent. As it is
etc. clear from the given flow chart all the sectors are
Post Office and the
interdependent:
BSNL. of
of
imnportance () Primary sector provides food and other raw
points
Describe any four the Indian economy. material to secondary sector and in return
primary sector in [CBSE 2025 (D)] secondary sector provides various inputs like
20% to
more than
machines, equipments ete. to the primary
AS, () Primary sector
contributes
sector.

the GDP of India. morethan


55%. () Primary sector provides tood to the tertiary
(ii) Its employment share is absorbing
sector of sector and in teturn tertiary sector provides
basic services like transportation, banking etc.
(ii) It is the most labour forestry
Indian economy. dairy,
fishing,
economy.
(iw) It cOvers agriculture,
the
Indian 33-£
contribute to
which all
Science-10

RGREEN Self-Study in Social


LONG ANSWER TYPE QUESTIONS (4 G5 MARKS)
Q.1. While estimating the national income, () Development of means of transport
only the value of the final goods and and communication : The development
services is used.' Explain with the help of of agriculture and industry leads to the
an example.
Ans. (i) While estimating the performance of a sector, development of services such as transport.
only the value of final goods and services is Communication, trade, etc. Allthese are under
used. This is for avoiding double counting. the tertiary sector.
(1ii) More income more services : The per
(ii) "The counting of the value of a product more
than once is called as double counting." capita income in our country is rising. As
This leads to the overestimation of the value the income level rises, people demand more
services like tourism, shopping centres,
of goods and services produced. schools, professional training centres, banks,
(i) Let us understand the concept with the help of etc.
an example (iv) New services: With modernisation and
A farmer produces one ton of wheat, and sells globalisation, some new services based on
it for 100 to a flour mill. As far as the farmer
is concerned, the sale of wheat is a final sale for information and communication technology
have become important and essential. The
him. But the purchase of wheat by the flour mill production of these services has been rising
is an intermediate goods. He converts the wheat rapidly.
into flour and sells it to a baker for 150. The Q.3.Explain any four points of importance of
flour mill treats the flour as a final product, but Secondary sector in the Indian economy.
for baker it is an intermediate goods. The baker [CBSE Comptt. 2008 (D), 13]
sells the bread to the shopkeeper for? 200, and Ans. (i) The secondary sector contributes more than
the shopkeeper to the consumer for 250. 20% to the GDP of India.
Value of output = Farmer (? 100) + Flour mill (i) It provides employment to the people.
( 150) + Baker ( 200) + Shopkeeper (? 250) (ii) It provides goods to the people like cloth,
=7 700 sugarcane, iron and steel.
So while calculating the national income only the (iv) The secondary sector promotes the
value of the final output, i.e., 250 should be development of the primary and the tertiary
included not 700. sectors.
Q.2. Why is the tertiary sector becoming so Q.4. Suggest some ways which can be helpful
important in India? Give at least four in creating employment in rural areas.
reasons. [CBSE 2008, 2009 (D) [CBSE Sept. 2010, 2011]
Sept. 2011,2012, 2020(D) Or
Or What steps should be taken to create more
Why is tertiary sector growing so rapidly in employment ? Explain.
India ? Explain it with four reasons. [CBSE Sept. 2010, 2011]
[CBSE Sept. 2011, 14, 2019(D)] How to create more employment in rural
areas ? Explain with examples.
Or
Examine the rising importance of the [CBSE Sept. 2011, 2012]
tertiary sector in India. Ans. (1) Diversification of agriculture: More than
(CBSE 2023 (0), 2025 (D)] 60per cent of our workers are employed in
Ans. (i) Basic services : In any country, several agriculture. But our farmers are producing
services like education, health, banking etc., only limited crops. There is need to diversity
are required. These can be considered as agriculture. Farmers should be encouraged to
basic services. In a developing country, the adopt pisciculture, horticulture, animal rear
government has to take the responsibility for ing, etc., along with cultivation of crops.
the provision of these services. (i1) Cheap credit:Most of the farmers depend
As more and more people are being on informal sources of credit, ie., money
employed to provide the basic services to lenders, relatives, traders, etc., who charge a
the people, the share of the tertiary sector very high rate of interest. Government shoula
in the Gross Domestic Product, the GDP is encourage the commercial banks to provide
increasing. loans to the farmers at cheaper rates.
kisf34-E i K E EVERGREEN Self-Study in Social Science
i) Provision of basic
lacck the basic
areas facilities : Our rural
facilities
portation, banking. warehouses, like roads, How does public sector contribute to
trans- economic development to the nationthe?
The government should markets, etc.
in these sectors so that invest some Explain. [CBSE 2018 Comptt., 2025 (D)]
the money
be linked to other markets.Indian villages can Or
provide productive This activity can Describe the role of public sector in the
farmers, but also to enployment
others such toas those
not just economic development of the country.
services like transport or trade. in
[CBSE Comptt. 2020]
(iv) Promotion of local Ans. () Development of infrastructure : The
activities : Anotherindustries and other
way to tackle this pace of industrial development cannot be
problem is to identity, accelerated without the establishment of
industries, especially thepromote and locate
cottage and small infrastructure. Its development requires huge
scale industries in semi-rural capital investment, which cannot be mobilised
large number of people may areas, be
where a by the private sector. Moreover, these projects
It also includes setting up a flour employed. do not promise high profits.
or rice mill (i) Development of backward areas: The
to procure and process these and sell in the
cities. In villages, near forest areas, honey goal of achieving a reduction in economic
collection centres can be started where inequality between regions becomes easy
to reach, if industries are set up in the
farmers can comne and sell wild honey. backward areas. But the profit seeking private
What are the advantages of working in an industrialists often are not enthusiastic enough
organised sector? [CBSE Sept. 2011] to set up industry in the backward regions.
The government, therefore, finds it necessary
Or tostart industrial production in these areas on
What is an organised sector ? Describe its its own.
working conditions. (CBSE 2009 (D)] (D) Basic facilities : There are a large
number of activities which are the primary
Or responsibility of the government. The
sector receive
How do workers of organised government must spend on these. Providing
security ? Explain
the benefit of employment
[CBSE 2021 Comptt)
health, quality education, particularly
with examples. elementary education, is the duty of
or
organised sector covers those enterprises the government. India's size of illiterate
An the terms of
employment
population is one of the largest in the world.
places of work where assured
and, therefore, people have (iv) Other problems : There are many other
are regular the government problems like malnourishment, high infant
Work. They are registered by which
mortality rate, unsafe drinking water, lack of
regulations
follow its rules and
and have to the Factories
laws such as housing facilities, etc., which need special
dle given in
various Payment of attention. These problems can be solved only
Minimum Wages Act, the
Act, the etc. with the help of the government.
Gratuity Act, Shopso rAct, sector enjoy security
0.7. Do you agree that
agriculture is an activity
ganised
? Give
) Workers in the
hours.
of the unorganised sector in India
of employment. number of any four points.
fixed paid
fora be [CBSE Sept. 2010, 2012]
(i) They work onlymore, they have to of the
If they work employer. the Ans. Yes. Agriculture in India is an activity
from
Overtime bythe
benefits unorganised sector.
other during
agriculture are
several
(Gii) They also get paid leave,
payment
() Most of the workers working in
etc. illpaid.
employers like fund,benefits
provident
gratuity,
and,
under
(ii) Agriculture sector
faces the problem of
holidays, medical
ensure
has to safe underemployment.
(tv) They also get factory
water
and a
manager

(iti) Most of the workers working in agriculture


are
the laws, the and sowing
drinking

the employed only during harvesting


facilities like government
in season.
environment.
[ C B S ES e p t . 2 0 1 3 )
Working
of
Explain the role p 3 0 35-E NE

public sector.
Or
S c i e n c e - 1 0

Social

GREEN Self-Studyiin
(iv) Most of the farmers are dependent on industry, casual workers in construction,
moneylenders and relatives for their loan trade and transport, etc. It also consists of
requirements. those who work as street vendors, head load
Q.8. How can workers in the unorganised workers, garment makers, rag pickers, etc.
be protected ? Explain. Role of Government :
[CBSE Sept. 2010, 2011] () Government can provide them cheap loans.
Ans. (i) Government can fix the minimum wages rate (iü) Government can provide basic facilities
and working hours. like education, food, health at cheap and
(ü) Government can provide cheap loans to the affordable rate.
self employed people. Q.10. Explain how a shift has taken between
(ii) Government can provide cheap and sectors in developed countries.
affordable basic services like education, Ans. (i) At initial stages of development, it was the
health, food to these workers. primary sector which dominated. Most of the
(iv) Government can frame new laws which can people were employed in the primary sector
provide provision for overtime, paid leave, only.
leave due to sickness, etc. (ii) With the introduction of new methods of
Q.9. Write two groups of people working in farming and manufacturing people started
unorganised sector who are in need of
working in other activities i.e., manufacturing.
protection. How can the government So secondary sector gradually bcame the
protect them ? [CBSE Sept. 2010] most important in total production and
Ans. (i) In the rural areas, the unorganised sector employment.
(ii) In the past 100 years the service sector has
mostly comprises the landless agricultural
labourers, small and marginal farmers, become the most important in terms of total
sharecroppers and artisans (such as weavers, production and employment.
blacksmiths, carpenters and goldsmiths). (iu) The domination of service sector is due to
(iü) In the urban areas, the unorganised sector globalisation of the world economy
mainly comprises workers in small-scale
Q.11. Compare the diferent sectors.
Or
Distinguish between primary, secondary and tertiary sector. (CBSE 2015, 2019 (D), 2023 (
Ans.
(it) Transport, storage,
communication, banking,
trade are some examples in 1970-71 was only 30% whereas it has risen
Since these activities of tertiary activities. to more than 50% in 2013-14.
generate
than goods, the tertiary services
the service sector. sector is also rather
called () Share in employment: The share of tertiary
sector in providing employment is also on the
(iv) The sector of tertiary rise. In 1970-71 only 12% of the total work
sector is on the rise in
most of the developing force of India was employed in the tertiary
Q.10. What do you nations. sector whereas the data has risen to more than
unemployment? understand by disguised 20% in 2013-14.
each from the rban Explain with an example, Q.13. The service sector in India employs two
and rral areas.
[CBSE Sept. 2011, 2012] different kinds of people. Who are these ?
Ans. Refer Q. No. 5, Short Ans. (i) Skilled and educated people.
o44. Distinguish between Answer Type
Questions. (i) Unskilled and uneducated people.
open unemployment
and disguised unemployment. Skilled and educated people include engineers,
Ans. doctors, teachers, defence persons, police, etc.,
whereas the unskilled and the uneducated
Open Unemployment people usually incude shopkeepers, traders, farm
Disguised labourers, etc.
() Under this, the worker Unemployment Q.14. Workers are exploited in the unorganised
(i) Under this the worker sector. Do you agree with this view ? Give
is ready to work, but he
is unable to find any is working, but if he reasons in support of yor answer.
work. is removed, the pro [CBSE Sept. 2012]
duction does not fall. Ans. Refer QNa. 13 Fomulating, Creating, Analysing
(ii) It can occur in any
(iü) It occurs mainly in and Evaluation Based Questions.
sector. Q.15. How are the activities in the
agriculture. classified on the basis of employnent economy
Q.12. "Tertiary sector is playing a conditions ?
in the development of Indiansignifcant role Ans. 1. Organised 2. Unorganised
you agree ? Give reasons in economy." Do For detais, refer 9, Short Answer
support of your
answer.
[CBSE 2024 Comptt.] Q.16. Compare the employmentType Questions.
Or prevailing in the organised conditions
and
How far is it correct to say that norganised ssectors. {CBSE 2015]
in Ans. Refer QNo. 5, Long
recent past, India has experienced some Answer Type Questions and
significant changes in the contribution to QNo. 13. Formulating, Creating, Analysing and
GDP by the service sector ? Explain. Evaluation Based Questions.
Q.17. Explain the objective of
[CBSE 2013) MGNREGA 2005. implementing the
Or Ans. Refer QNo. 10, Short [CBSE Sept. 2011]
Evaluate the contribution of the tertiary Q.18. Using examples from Answer Type Questions.
sector.in Gross Domestic Product (GDP) and contrast the your area, compare
in India. [CBSE 2025 (0)) of the private and activities and functions
the public sectors.
Ans. I do not agree with the statement as tertiary sector Ans. Refer QNo. 11, Short
Answer Type
plays a significant role in the development of Q.19. Discuss and fill the following Questions
Indian economy. table
) Contribution to other sectors
one example each
rom your area. giving
Tertiary sector provide support services like Well managed Badly managed
transportation, communication, banking etc. organisation
to both primary as well as secondary sector. Public Sector organisation
For example, goods that are produced in the Private Sector
primary or secondary sector would need to be Ans. Self-explanatory.
transported by trucks or trains and than sold in
the wholesale ot retail shops. At times, it may Q.20. Give a few
examples
be necessary to store these in godowns. acttvities, and explain ofwhythethepublic sector
(tt) Share in GDP : Tertiary sector share in GDP has taken them up. government
is rising very fast. The share of tertiary sector Ans. Refer Q.No 6, Long
Answer Type Questions.
EVERGREEN Self-Study in Social Science-10
39-E
Describe the estimates
Commission to create jobs inof Planning
tourism and (ii) Workers working in an unorganised sector get
education. less wages.
(i) Planning Commission [CBSE 2012] (iii) There is a no provision for overtime, paid
lakh jobs can be estimates that nearly 20 leave, holidays, leave due to sickness, etc.
alone.
created in education sector
() More children to (iv) Employment is subject to high degree of
attend insecurity.
and more infrastructure school, more teachers (v) A large number of people doing small jobs
(i) Planning Commission will be required. such as selling on the street or doing repair
estimates that nearty 35
lakh jobs can be created work comes under the unorganised sector.
in tourism sector.
(ip) Regional craft, cottage industry Suggestions :
jobs.
also can create
() Expanding the base of organised sector.
(p) New services like IT also (i) Spread of education.
may be job
generators. Q.14. Explain the role of public sector. Suggest
How can we create more employment any two ways to improve the working of
opportunities in urban areas ? Explain public sector or government.
with examples. [CBSE 2012, 2023 (0)] [CBSE Sept. 2012]
Or Or
Suggest any three ways to create more Why is public sector required to provide
employment avenues in urban sector. certain things at reasonable cost ?
[CBSE 2011] [CBSE 2013]
. Ways to increase employment opportunities:
Or
(i) Loan should be given at cheap rates and at
ldentify any five activities where the
less documentation.
government must spend for the welfare of
(ii) Industries should be located where a large the people and why. [CBSE 2012]
number of people may be employed. Or
improved
(ii) Educational facilities should be Education
be set up. How far is it correct to say that several
and newschools shouldemployment-oriented. services which cannot be provided by
system should be made
Vocational training should
be merged in private sector, can be provided by the
mainstream education patterm. public sector ? Explain. [CBSE 2012]
should be encouraged. Ans. () There are several things needed by the
(iv) Small-scale industries
industries and
services should society as a whole like sanitation system, safe
Regional craft
drinking water, education, etc. which the
be promoted. be promoted. private sector will not provide at reasonable
should
() Tourism industries of working in cost.
disadvantages

What are the Suggest any two (i) There are some activities, which the
. sector ?
unorganised working in an
an
protect the
workers government has to support. The private
ways to sector may not continue their production or
unorganised sector.
business unless government encourages it.
or unorganised
sector For example, selling electricity at the cost of
working in an [CBSE 2013]
generation.
Why is ?
(ii) Similarly, the government in India buys wheat
secure
considered
not
Or p r o t e c t i o n
and and rice from farmers at a 'fair price.' This
a need for unorganised
it stores in its godowns and sells at a lower
"There is
workers in the with
price to consumers through ration shops. The
the statement

u p p o r t of Exnlain
the [CBSE 2024(0)] government has to bear some of the cost.
Sector",
c h a r a c t e r i s e d
by In this way, the government supports both
examples. sector is largely farmers and consumers.
are
Ans. () The
u n o r g a n

scattered
i s e d

units
which
g o v e r n m e n t .

43-E
Small and c o n t r o l of the
Outside
the S c i e n c e - 1 0

Social
Self-Studyin
iERGREEN
(iv) It is also the duty of the government to take activities. For example, transport, education
care of the poorest and most ignored regions medical services.
of the country through increased spending in (iv) Primary and secondary activities cannot
such areas.
produce a good unless they are aided by the
Improvement of working of government tertiary sector.
(i) Citizens should actively participate in the (u) Service sector does not produce a good
election procedure. For example, the internet cafe, ATM booth
(ii) People should use RTI whenever not call centers are the services required for
satisfied with any government department. manufacturing industries etc. Railways.
Q.15. Explain the interdependence of all the three roads are needed to assist agricultural
economic sectors giving examples from production.
transportation system. [CBSE 2013] Q.16. Activities in the private sector are guided
Or by the motive to earn profits." Examine
How are the three sectors of economy the statement with examples.
interdependent ? Explain with five suitable [CBSE 2024(0)]
examples. [CBSE 2012] Ans. (i) Private sector is controlled and managed by
Or an individual or a group of individuals.
'Economic activities, though grouped (iü) The main aim of the sector is to earn
into three different categories, are highly maximum profits not welfare of the people.
interdependent.' Discuss. [CBSE 2010] (iii) The sector provides consumer goods to the
Ans. (i) When we exploit natural resources, it is an people. For example, the Reliance, TISCO,
etc.
activity of the primary sector. e.g., agriculture,
mining, forestry. (iv) After the liberalisation in 1991 workers have
(ii) The natural resources are changed into other suffered a lot as theyare being paid very low
forms through the process of manufacturing, wages as the main purpose of the private
sector is to earn profit.
i.e., manufacturing sector uses natural
products as its raw materials. (v) The basic aim of government hospitals
(iüü) All services, that enable us to pursue primary and schools is provide subsidised health
and education whereas private schools ana
and secondary activities are listed as tertiary hospital charge very high fee.
(

SOURCE/EXTRACT/CASE BASED INTEGRATED QUESTIONS

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