NCERT Class 10 Social Science Chapter 19 Sectors of the Indian Economy

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NCERT Class 10 Social Science Chapter 19 Sectors of the Indian Economy

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Sectors of the Indian Economy

Chapter – 19

UNDERSTANDING ECONOMIC DEVELOPMENT (ECONOMICS)

TEXT BOOK QUESTIONS

Q. 1. Fill in the blanks using the correct option given in the brackets:

(i) Employment in the service sector ________ increased to the same extent as production. (has/ has not)

Answer: has not.

(ii) Workers in the __________ sector do not produce goods. (tertiary / agricultural) 

Answer: tertiary.

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(iii) Most of the workers in the __________ sector enjoy job security. (organized / unorganized) 

Answer: Organized.

(iv) A __________ proportion of laborers in India are working in the unorganized sector. (large / small)

Answer: large.

(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured).

Answer: Natural, manufactured.

(vi) The activities in primary, secondary and tertiary sectors are _________. (independent / interdependent)

Answer: interdependent.

Q. 2. Choose the most appropriate answer:

(a) The sectors are classified into public and private sectors on the basis of:

(i) employment conditions.

(ii) the nature of economic activity.

(iii) ownership of enterprises.

(iv) number of workers employed in the enterprise.

Answer: (iii) ownership of enterprises.

(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector. 

(i) primary.

(ii) secondary.

(iii) tertiary.

(iv) information technology.

Answer: (i) primary.

(c) GDP is the total value of _________ produced during a particular year.

(i) all goods and services.

(ii) all final goods and services. 

(iii) all intermediate goods and services.

(iv) all intermediate and final goods and services.

Answer: (ii) all final goods and services. 

(d) In terms of GDP the share of the tertiary sector in 2003 is __________.

(i) between 20 percent to 30 percent.

(ii) between 30 percent to 40 percent.

(iii) between 50 percent to 60 percent.

(iv) 70 percent. 

Answer: (iii)  between 50 percent to 60  percent.

Q. 3. Match the following:

Problems faced by farming sectorSome possible measures
1. Unirrigated land(a) Setting up agro-based mills
2. Low prices for crops(b) Co-operative marketing societies
3. Debt burden(c) Procurement of food grains by government
4. No job in the off season(d) Construction of canals by the government
5. Compelled to sell their grains to the local traders soon after harvest.(e) Banks to provide credit with low interest

Answer:

Problems faced by farming sectorSome possible measures
1. Unirrigated land(a) Construction of canals by the government
2. Low prices for crops(b) Procurement of food grains by government
3. Debt burden(c) Banks to provide credit with low interest
4. No job in the off season(d) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest.(e) Co-operative marketing societies

Q. 4. Find the odd one out and say, why.

(i) Tourist guide, dhobi, tailor, potter.

Answer: Tourist guide is the odd one because he comes under organized sector and follows the rules and regulations while others are often uneducated and fall under unorganized sector.

(ii) Teacher, doctor, vegetable vendor, lawyer.

Answer: Vegetable vendor is the odd one, because he comes in the category of unorganized sector. The others fall under the service and organized sector.

(iii) Postman, cobbler, soldier, police constable.

Answer: Cobbler is the odd one because he comes in the category of private sector/service sector as he provides personal service. Others are employed by the government and come under public sector.

(iv) MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.

Answer:  Sahara Airlines is odd one as it is owned by private individuals. Others are public or government sector enterprises

Q. 5. A research scholar looked at the working people in the city of Surat and found the following:

Place of workNature of employmentPercentage of working people
1. In offices and factories registered with the governmentOrganized15
2. Own shops, office, clinics in marketplaces with formal license15
3. People working on the street, construction workers, domestic workers20
4. Working in small work-shops usually not regis-tered with the govern-ment

Complete the table. What is the percentage of workers in the unorganized sector in this city?

Answer: Complete table is given below:

Place of workNature of employmentPercentage of working people
1. In offices and factories registered with the governmentOrganized15
2. Own shops, office, clinics in marketplaces with formal licenseService sector15
3. People working on the street, construction workers, domestic workersUnorganised20
4. Working in small work-shops usually not regis-tered with the govern-mentSecondary sector50

The proportion urs in the unorganized sector in this city = 70%

Q. 6. Do you think the classification of economic activities into primary, secondary and tertiary sectors is useful? Explain, how?

Answer: The classification of economic activities into primary, secondary and tertiary sectors is useful due to the reasons as mentioned below:

(i) It shows the employment conditions: The classification of economic activities shows the employment conditions in different sectors. For example, in a developing country like India, most of the people are engaged in the primary sector which is also called agriculture and related sectors. On the other hand, in developed countries, like the USA , most people are employed in secondary and tertiary sectors.

(ii) For government planning: The classification of economic activities also helps the government to take steps so that more and more people are employed in non-agricultural sectors, particularly tertiary sectors because this sector helps in the development of the primary and secondary sectors.

(iii) To know the contribution of the people: Economic activities performed by different groups of people, their percentage and their contribution in G.D.P.

(iv) Knowing the G.D.P. position: We come to know G.D.P. position through graphs and data of these sectors and their share in percentage.

(v) Share of sectors: We also come to now through the classification about the share sectors in employment (percentage).

(vi) No. of employed: The classification also tells us the number of workers engaged in different sectors (in lakha/millions). 

(vii) Knowledge of economic activities: Classification of sectors informs us about economic activities performed in a country.

Q. 7. For each of the sectors that we came across in this chapter, why should one focus on employment and G.D.P.? Could there be other issues which should be examined? Discuss.

Answer: I. For each of the sectors mentioned in this chapter, our focus should definitely be on employment and G.D.P. This is because, growth in GDP and full employment are the common goals of our Five Year Plans. 

II. Yes, the other issues which should be examined are:

(a) Balanced regional development in the country.

(b) Equality of income and wealth among the people of the country.

(c) To remove poverty.

(d) Modernisation of technology. 

(e) Self-reliance of the country.

Q. 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 classify them? Explain your choice.

Answer: Following is the list of all kinds of work that adults are doing for a living: Teacher, doctor, engineer, electrician, cattle rearer, shopkeeper, washerman, milk vendor, farmer, insurance manager, government employees, sweeper, domestic worker, factory owner, vegetable grower, work at a construction site.

(i) Primary Sector: Farmer, fruit and flower growers, vegetable grower and cattle rearers.

(ii) Secondary Sector: Work at s construction site, factory owner.

(iii) Tertiary Sector: Engineer, doctor, electrician, teacher, shopkeeper, washerman, insurance manager, government employees, domestic worker, sweeper. 

(iv) Organized Sector: Doctor, engineer.

(v) Unorganized Sector: Shopkeeper, electrician, washerman, sweeper, domestic work and insurance manager.

(vi) Public Sector: Teacher, government employees. 

(vii) Private Sector: Doctor, engineer, electrician. 

Q. 9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer: There are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process.

Examples: 1. Goods that are produced by the primary or secondary sector, would not be transported by trucks or trains, and then sold in wholesale and retail shops. At times, it may be necessary to store these in godowns.

2. We also may need to talk to others over the telephone or send letters (communication) or borrow money from the bank (banking) to help the production and trade. Transport, storage, communication, banking, trade, etc. are some examples of the tertiary activities. 

Q. 10. What do you understand about disguised unemployment? Explain with an example each from the urban and rural areas.

Or

Explain the meaning of disguised unemployment with the help of an example.

Or

Explain what is meant by disguised unemployment. Give examples from rural and urban areas where disguised unemployment exists.

Answer: I. Meaning of disguised unemployment: Disguised unemployment is the situation of under employment, where people are apparently working but all of them are made to work less than their potential. This type of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.

II. Examples:

(A) From Rural Areas: In rural areas there are more people in agriculture that is necessary. Therefore, even if we move a few people out (from agriculture occupation). production will not be affected.

(B) From Urban Areas: In urban areas there are thousands of casual workers in the service sector who search for daily employment where they may spend the whole day but earn very little. 

Q. 11. Distinguish between open unemployment and disguised unemployment.

Answer: 

Open UnemploymentDisguised Unemployment
1. Open unemployment is a situation in which a person who is able (or fit) and willing to work at an existing wage rate cannot get work. This type of unemployment exists due to lack of resources.1. Disguised unemploy-ment is a situation in which more people are engaged in activity than the required one. The absence of alternative employment opportunities leads to this situation.
2. Open unemployment exists among the educated unemployed. Generally this type of unemployment can be seen in the urban areas.2. On the other hand disguised unemploy-ment exists generally in the agricultural sector and mostly among the rural people.
3. Under this, the worker is ready to work, but he is unable to find any work.3. Under this, the worker is working, but if he is removed, the production does not fall.

Q. 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 statement because of the following reasons:

(a) The tertiary sector or the service sector in India employs many different kinds of people.

(b) This sector has now become the largest producing sector in India by replacing the primary sector. The share of the tertiary sector in GDP is now more than 50%.

Q. 13. Service sector in India employs two different kinds of people. Who are these different types?

Answer: Service sector in India employs two different kinds of people.

These are are:

(i) Highly skilled and educated workers but in lesser numbers e.g., advocates, teachers, technicians etc. 

(ii) Unskilled workers but in large number e.g., small shopkeepers, repair persons, transport persons, peddlers, hawkers, footpath vendors etc.

Q. 14. Workers are exploited in the unorganized sector. Do you agree with this view? Give reasons in support of your answer.

Answer: Yes, I agree with this view that workers are exploited in the unorganized sector.

(i) Unorganized sector comprises scattered units not under control of the government. 

(ii) Working hours and working conditions are determined by owners of these units at their will. 

(iii) Only profit motive prevails in these units. and they exploit workers as much as, it is possible.

(iv) Labour laws in our country have been made the most flexible since the 1990’s viz. under new economic policy or globalization. Employers are made free to get work done though workers under arbitrary terms and conditions.

(v) Inception of MNCs has aggravated the situation more than before and a milieu of stranglehold has been formed.

(vi) Capitalism is dancing naked on the floor of the industrial and service (tertiary) sector of the Indian economy, resulting in the HDI rank of India crashing down to 126 out of 177 countries as per UNDP report of 2004. 

Q. 15. How are the activities in the economy classified on the basis of employment conditions?

Answer: The activities are classified in the economy on the basis of nature of activity. Commonly we can divide the economic activities into organized and unorganized sectors. Organized sector includes those enterprises or places of work where the terms of employment are regular.

Activities of the organized sector are registered by the government and one has to follow its rules and regulations which are given in various laws. On the other hand activities of unorganized sectors are low paid and often not regular, employment is not secure and people can be asked to leave without any reason. 

Q. 16. Compare the employment conditions prevailing in the organized and unorganized sectors.

Or

Explain any three differences between the organized and unorganized sector. 

Answer: Employment conditions in organized and unorganized sectors.

Organized SectorUnorganized Sector
1. Registration: The organized sector com-panies those enter-prises where the terms of employment are regular. They are registered by the government.1. No Control of Government: The unorganized sector is characterized by small scattered units. They are generally outside the control of the government.
2. Rules: They are registered, therefore they have to follow the rules and regulations which are given in various laws such as the Factory Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishment Act, etc.2. Lack of Discipline: There are rules and regulations passed by the government but unorganized enterprises do not follow them.
3. Pay and Allowance etc.: Workers in the organized sector are paid according to prescribed scale, they get payment on time and on a regular basis. They get annual incre-ment and other allow-ances such as provi-dent fund, medical facilities, pay sick holidays etc.3. Low Pay and Lack of Facilities: Most of the jobs are low-paid and often not regular. There is no provision of overtime, paid leave, holidays, leave due to sickness, etc.
4. Security of job: Workers in the organized sector enjoy security of employment. They are expected to work only for fixed numbers of hours. If they work more they have to be paid over- time by the employers.4. No Security: 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 depending on the whims of the employers.

Q. 17. Explain the objective of Implementing the NREGA, 2005.

Answer: NREGA and its Objectives: 

1. Under this scheme ie., National Rural Employment Guarantee Act, 2005, the Gram Panchayat after proper verification will register households, and issue job cards to registered households. The job card is the legal document that entitles a person to ask for work under the Act and to get work within 15 days of the demand for work, failing which an employment allowance would be payable.

2. 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.

3. This scheme targets the Scheduled Castas, Scheduled Tribes and the poor women, who suffer from poverty. 

Q. 18. Using examples from your area compare and contrast the activities and functions of private and public sectors. 

Answer: Private Sector-

(i) Ownership of assets and delivery of services is in the hands of private individuals or companies.

(ii) This sector is guided by the motive to earn more and more profits.

(iii) Services of this sector can be obtained online, hence, the poor people can not afford services of this sector. 

Example: TISCO, Reliance Petro-chemicals, Modi Tyres, Bajaj Scooters, Berger Paints.

(iv) This sector does not render services of public utility.

Public Sector:

(i) The government owns assets and takes responsibility to deliver services. 

(ii) This sector is not guided by profit motive.

(iii) It invests funds to construct structures and infrastructure of public utility e.g. construction of roads, bridges, railways, harbors, generation of electricity, construction of dams, school and college buildings etc.

(iv) All citizens of a country use and obtain services produced by this sector unconditionally. 

(v) It collects funds for investment indirectly through taxes on people having certain income and capable of paying them.

Example: Post and telegraph, Railways, C.P.W.D.

Q. 19. Discuss and fill the following table giving one example each from your area.

Well managed organizationBadly managed organization
Public sector
Private sector

Answer: 

Well managed organizationBadly managed organization
Public sectorPost officeDelhi Transportation, Delhi Jal Board
Private sectorRanbaxyNorth Delhi Electricity Supply Ltd.

In the public or government sector, sne-services provided by the Post Office are better and accessible. On the other hand services provided by DTC and DJ.B. are not satisfactory. These are inadequate and inefficient.

In the private sector, situation is almost the same.

Q. 20. Give a few examples of public sector activities and explain why the government has taken them up. 

Answer: I. Examples of Public Sector activities are: 

(i) Railway.

(ii) Roads. 

(iii) Post and Telegraph Office.

(iv) BSNL and MTNL.

(v) Life Insurance Corporation of India. 

II. Why: The government has taken up the above mentioned activities for the defense as well as for economic reasons. The government also desires to provide essential services in the field of transportation, communication and defence. of the country. Every government is supposed to perform certain necessary activities. Most of these activities are essential to maintain internal law and order of the country also.

Q. 21. Explain how public sector contributes to the economic development of a nation.

Answer: The public sector contributes to the economic development of a nation in the following way:

(i) Public sectors raise money through taxes and other ways to meet expenses on the services etc. For all people of India.

(ii) This sector runs railways, shipping, airplanes, metro and local trains. They help in promoting all economic activities and industries.

(iii) It runs post-offices, telegraph offices and telephone facilities. Educational institutions, hospitals, water supply, electricity supply also help directly or indirectly in enhancing the economic development of a nation.

Q. 22. The workers in the unorganized sector need protection on the following issues: wages, safety and health. Explain with examples.

Answer: Protection of the workers: The workers in the unorganized sector should be protected on the issue of wages, safety and health. This has the following reasons:

Wages:

(i) They are treated as bonded labor. They have to work more than twelve hours a day without paid overtime. 

(ii) They got no other allowances apart from daily wages.

(iii) Jobs are low paid.

(iv) There is no job security. They can be asked to leave the job any time without any reason.

(v) They are heavily in debt. So, they are forced to accept lower wages.

(b) Safety: Since they are generally engaged in many hazardous industries like glass, cement brick, mining and crackers industries, so they need protection.

(c) Health: Due to low wages, they are unable to have nutritious food. So, their health status is very low. Due to their working and living conditions they generally remain unhealthy.

Q. 23. A study in Ahmedabad found that out of 15,00,000 workers in the city 11,00,000 worked in the unorganized sector. The total income of the city in this year (1997-1998) was Rs. 60,000 million. Out of this, Rs. 32,000 million was generated in the organized sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Answer: I. Workers and their income in Ahmedabad:

Organized sectorUnorganized sectorTotal
Workers4,00,00011,00,00015,00,000
Total Income (1997-98) (million rupees)32,00028,00060,000

II. The following ways should be adopted for generating more employment in the city:

(i) More Industries should be established in the public sector, private sector and joint sector.

(ii) Sufficient loan should be provided to city dwellers to create employment for themselves.

(iii) Construction work should be taken for building residential complexes, commercial complexes, roads, lanes, school buildings, hospitals etc.

(iv) Banking services, ATM, call centers, health facilities, educational institutions, gardens, parks, entertainment centers and financial establishments should be started by government, private enterprises, NRIs.

Q. 24. The following table gives you the GDP in rupees (crores) by the three sectors:

YearPrimarySecondaryTertiary
195080,00019,00039,000
20003,14,0002,80,0005,55,000

(i) Calculate the share of the three sectors in GDP for 1950 and 2000.

(ii) Show the data as a bar diagram similar to graph 2 in the chapter.

(iii) What conclusions can we draw from the bar graph?

Answer: The share of the three sectors in GDP.

YearPrimarySecondaryTertiaryTotal G.D.P.
195080,00019,00039,0001,38,000
20003,14,0002,80,0005,55,00011,49,000

(a) Primary Sector:

in 1950 = 58%, in 2000 = 27%

(b) Secondary Sector:

in 1950 = 14%, in 2000 = 29%

(c) Tertiary Sector:

in 1950 = 28%, in 2000 = 48%

(ii) Presentation through graph-

Share of Sectors in GDP (%)

(iii) We can draw the following conclusion from above bar graph:

(a) In 1950, the contribution of primary sector was the largest. The tertiary sector came in second place while the contribution of the secondary sector was the least.

(b) The situation in 2000 was changed. The contribution of the tertiary sector was the maximum. The second place was retained by the primary sector while the third place was the secondary sector.

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