CLASS X SOCIAL SCIENCE / ECONOMICS

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, tertiary and secondary is useful on account of the information it provides on

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How and where the people of a country are employed.
It 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.

We can ascertain the sectoral share in the economy and government can make policies to promote the sector contributing less to the economy.

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.
We can rectify the problems faced by one specific sector, like in recent time agricultural profession is becoming unpopular or regressive.

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 GDP? Could there be other issues which should be examined? Discuss.

Answer: For each of the sectors that we came across in this chapter, one should focus on employment and GDP because-

Employment and GDP determine the size of a country’s economy and the condition of the economy.
A focus on employment and GDP helps determine two important things- per capita income and productivity.

Hence, in each of the three sectors, employment rate and status, as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

Yes, the other issues which should be examined are –

Balanced regional development.
Equality in income and wealth among the people of the country.
Eradication of poverty
Modernization of technology.
Self-reliance of the country.
Ways for achieving surplus food production in the country.

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

Answer: The tertiary sector different from the other two sectors.

This is because the other two sectors produce goods but, this sector produces services rather than goods.
The activities under this sector help in the development of the primary and secondary sectors.

Therefore, it is also known as the service sector.

These services are an aid or support for the production process.

For example,

Goods produced in the primary or secondary sector use transportation service for movements of goods from one place to another, banking and communication services to deal with payment for goods, etc.
Similarly, doctors, teacher, lawyers, tailor, etc., come under the tertiary sector as they provide services rather than material goods.

In recent times, certain new services based on information technology such as internet cafe, ATM booths, call centers, software companies etc have become important.

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

Disguised Unemployment: It is an important feature of a joint family business and a situation of underemployment in which more than the required persons are engaged in a production activity. In this, people who are visibly employed but are actually unemployed. This is a situation of underemployment, where people are apparently working but all of them are made to work less than their potential. This situation is also known as Hidden Unemployment.

For example:

In rural areas, this type of unemployment is generally found in the agricultural sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are withdrawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

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 the statement that tertiary sector is not playing any significant role in the development of Indian economy. Over the last four decades (1970 -2010), tertiary sector has emerged as the largest producing sector. The growth in the service sector can be attributed to various factors such as:

Need for basic services like health, education, security, finance etc.
Introduction of new services like IT.
Development of primary and secondary activities.
Increase in demand for services due to increase in per capita income.

The GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

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 different kinds of people. They are:

The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
The people involved in such services that may not directly help in the production of goods or the self-employed. e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers mean those who give services to the primary service providers.

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 unorganized sector. This would be clear from the following points:

No rules and regulations followed.
There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
They do not get other allowances apart from the daily wages.
Government rules and regulations to protect the labourers are not followed there.
There is no job security.
Jobs are low paid. The workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.
Social discrimination.

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

Answer: On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors:

Organized Sector -This sector covers those enterprises which are registered by the government and have to follow its rules and regulations which are given in the various laws such as the Factory Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishment Act etc.

Workers in the organised sector enjoy the security of employment.
They are expected to work only a fixed number of hours.
If they work more, they have to be paid overtime by the employer.
They get paid leave, payment during holidays, provident fund, gratuity etc.
For example, Reliance Industries Ltd., GAIL etc.
Unorganized Sector -It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations, these are never followed here. For example, casual workers in construction, shops etc.
Jobs here are low paid and often not regular.
There is no provision for overtime, paid leave, holidays, leave due to sickness etc.
There is in this sector there is no job security and the conditions of employment are also very tough.
People can be asked to leave without prior information or reason.

Question 16. Compare the employment conditions prevailing in the organised and unorganised sectors.

Answer: The employment conditions prevailing in the organised and unorganised sectors are vastly different.

The Organised sector: The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work.

The Unorganised sector: The unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of a safe work environment.

Question 17. Explain the objective of implementing the NREGA 2005.

Answer: The objective of implementing the NREGA 2005 are:

To increase employment of people.
To increase income of the people.
NREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

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

Answer: A few examples of public sector activities are the provision of water, electricity and some modes of transport, especially railway.

The government has taken these up because water and power are needed by everyone. If the work of providing electricity and water is left to private enterprises, they later might exploit this opportunity and sell these at rates which the masses cannot afford.

Hence, to ensure that basic amenities like water and power are available for all, the government supplies these at low and affordable rates.

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

Answer: In the following ways Public sector contributes to the economic development of a nation:

It promotes rapid economic development through the creation and expansion of infrastructure.
It creates employment opportunities.
It generates financial resources for development.
It ensures equality of income and wealth, thus a balanced regional development.
It encourages development of small, medium and cottage industries.
It ensures easy availability of goods at moderate rates.

Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

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

Answer: The workers in the unorganised sector need protection:

Wages: Labourers who are employed in the unorganised sector do not get fixed income. They nearly manage to earn their living. They are not employed all through the year.

For example, vendors, cobbler, plumber, etc. Proper and fixed wages should be given to these workers so that they can grow and contribute to the growth of the country.

Safety: Workers in the unorganized sector are not provided a safe and healthy working environment. For example, people working in the mining and chemical industries. There is no job security in this sector. Rules and laws should be there to provide such workers with a safe and secure working life.

Health: Workers in the unorganised sector are given no medical security and leaves for sickness.

For example, there are no health facilities for the construction workers.

Question 23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised 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 organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Answer:

	Organised Sector	Unorganised Sector	Total
No. of workers	4,00,000	11,00,000	15,00,000
Income (Rs)	32,000 million	28,000 million	60,000 million

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, the government should introduce some incentives so that more industries could be opened up in the organized sector