chapter 2 - Sector of Indian Economy

1. Fill in the blanks using the correct option given in the bracket:

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

  2. Workers in the _________ sector do not produce goods. (tertiary / agricultural)

  3. Most of the workers in the _________ sector enjoy job security. (organised / unorganised)

  4. A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

  5. Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]

  6. The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

Explanation:

  1. has not

  2. tertiary

  3. organized

  4. large

  5. natural

  6. independent


2. The sectors are classified into public and private sector on the basis of:

  1. employment conditions

  2. the nature of economic activity

  3. ownership of enterprises

  4. number of workers employed in the enterprise

Explanation:

The correct option is 3. Ownership of enterprises

Private organisations or companies are those that are controlled by corporate individuals or groups. Partnerships, sole proprietorships, cooperatives, and companies are some examples of private organizations. The Enterprise that the government owns and controls are referred to as the sector or companies.


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

  1. primary

  2. secondary

  3. tertiary

  4. information technology

Explanation:

The correct option is 1. Primary

Natural resource exploitation is a main sector activity when it comes to producing goods. 

The growing of cotton, as an illustration. It occurs during a growing season. We rely mostly, but not completely, on environmental elements like precipitation, sunlight, and weather for the growth of the cotton plant. Cotton, the end result of this action, is a natural product.


4. GDP is the total value of _________ produced during a particular year.

  1. all goods and services

  2. all final goods and services

  3. all intermediate goods and services

  4. all intermediate and final goods and services

Explanation:

The correct option is 2. All final goods and services

The gross household product, commonly referred to as GDP, measures the financial worth of all finished goods and services produced within a country's borders over a given time span.  (Usually a year). A few of the crucial actions of a country's fiscal health is its gross domestic product. Economists refer to GDP, or Gross Domestic Product, as the size of a country.


5. In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.

  1. 20 to 30

  2. 30 to 40

  3. 50 to 60

  4. 60 to 70

Explanation:

 The correct option is 3. 50 to 60

The secondary sector's contribution to GDP in 2013–14 ranged from 50 to 60 percent. The actions of this industry support the expansion of the main and intermediate industries. The financial operations of the tertiary sector do not create goods on their own, but they do aid or support production.


6. Match the following:

Problems faced by farming sector

Some possible measures

1. Unirrigated land

(a) Setting up agro-based mills

2. Low prices for crops

(b) Cooperative 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

Explanation:

Problems faced by farming sector

Some possible measures

1. Unirrigated land

(d) Construction of canals by the government

2. Low prices for crops

(c) Procurement of food grains by government

3. Debt burden

(e) Banks to provide credit with low interest

4. No job in the off season

(a) Setting up agro-based mills

5. Compelled to sell their grains to the local traders soon after harvest

(b) Cooperative marketing societies


7.  Find the odd one out and say why.

i . Tourist guide, dhobi, tailor, potter

ii. Teacher, doctor, vegetable vendor, lawyer

iii. Postman, cobbler, soldier, police constable

iv. MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Explanation:

(i) The tourism guide stands out because they are employed by the government as opposed to the tailor, dhobi, and potter who are self-employed.

(ii) Being employed in the primary sector, the Produce merchant stands out from those who hold tertiary sector positions like those of a teacher, attorney, or doctor.
(iii) The cobbler is the odd one off as he operates in his own business, whereas the postman, military, and police officer are all employed by either the governmental sector or the organised sector.
(iv) The odd exception is Jet Airways, that is held by a private company while MTNL, Indian Railways, the airline Air India, and the All India Radio Corporation are all owned by the Indian government.


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






Place of Work

Nature of Employment

Percentage of working People

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in
marketplaces with formal license


15

People working on the street,
construction workers, domestic workers


20

Working in small workshops
usually not registered with the government



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

Explanation:

Place of Work

Nature of Employment

Percentage of working People

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in marketplaces with formal license

Organised

15

People working on the street, construction workers, domestic workers

Unorganised

20

Working in small workshops usually not registered with the government

Unorganised

50

70% (50 + 20) of employees are working in an unorganised industry.


9. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain

Explanation:

the different professions that the country's citizen’s practice can be categorized, as can the relative contributions of each sector to the country's economic growth, using the division of economic activities into primary, secondary, and tertiary sectors. It is essential to enable to Identify the industry that contributes the most to the Revenue and the one that has the greatest potential to boost country revenue and job opportunities.


10. 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.

Explanation:

Amongst  crucial factors in a countries growth is its gross domestic product (GDP), along with employment.To determine a nation's total productivity and national income, GDP and employment are used as inputs. A nation's GDP, national revenue, and per capita income will all rise if it has a high employment rate. Therefore, this chapter has placed a lot of stress on these two items. Additionally, the following issues need to be considered:

  • medical centers

  • Education

  • Poverty

  • Food Production and Nutrition


11. 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.

Explanation:

the types of labor that people do to support themselves are categorized into primary, secondary, and tertiary sectors. We can use either of the three different groups to group the individuals nearby according to their line of work. Cleaning, farming, and selling vegetables are a few instances of primary sector activities. A secondary industry example is the production of goods. The tertiary sector includes industries like teaching, mining, finance, and transportation.


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

Explanation:

The expansion of the primary and secondary sectors is a result of tertiary activities. These activities differ from those that are pursued in the primary and secondary areas. Instead of creating a good on their own, these activities support or assist the manufacturing process. As an illustration, prior to distribution to distributors and stores, goods produced in the primary or secondary sectors needed transportation by vehicles or railway. The tertiary industry includes these businesses engaged in transportation and retail. Although they do not make the products themselves, they are crucial in selling and distributing them.


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

Explanation:

When everyone is expected to work for less than they are able of, it is referred to as "disguised unemployment." In this situation, the individual believes that he is employed but is not. This type of unemployment is frequently prevalent in agricultural areas in which farmland serves as the primary industry. When five people are working on a piece of property when only three people are needed, the two additional workers are said to be experiencing disguised unemployment. In urban areas, examples of disguised unemployment include painters, plumbers, and electricians who fight regularly with finding jobs or find jobs substantially less than their full potential.


14. Distinguish between open unemployment and disguised unemployment.

Explanation:

 Open unemployment refers to a situation in which a qualified candidate with a degree is unable to secure employment. This kind of unemployment is obvious. On the other hand, disguised unemployment happens when someone looks to be employed but is compelled to work below par. In villages, where farm workers believe they are working but put in a lesser amount of time than they should, this form of wage labor is quite apparent. 


15. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.

Explanation:

This is not true, no. The growth of the Indian economy is being significantly aided by the tertiary industry. The secondary sector took over from the primary sector as the one that produced the most in the nation in 2003. Below are some arguments in favor of this:

Only with the tertiary sector's assistance growth and success are seen in the primary, secondary, and tertiary area. The country's national income is significantly increased by the tertiary industry. The tertiary industry encompasses education, the cornerstone of everything. The tertiary sector includes people who serve as teachers. The majority of employment opportunities in the nation are offered by this industry.


16. Service sector in India employs two different kinds of people. Who are these?

Explanation:

 In India, the service sector employs two separate groups of individuals. These are the individuals: 

Employees with advanced degrees, including educators, financiers, and IT specialists. These people work steady employment.

Vendors, electricians, carpenters, and other members of the less skilled labor class. These individuals do not hold steady employment.


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

Explanation:

The unorganized sector consists mainly of small, dispersed groups that are not subject to the authority of the state. Although there are rules and regulations, they are not followed. These are irregular, low-paying jobs. Therefore, it is accurate to assert that since that they are provided with less work than they are paid for, unorganized sector employees are exploited. They don't provide accommodations for overtime pay or medical benefits. The lack of employment security is the biggest issue with working in this field.


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

Explanation:

 Based on the nature of the jobs, the industry can be classified into two sectors:

Organizational Sector: Companies with a legal existence in India that pay high salaries and foster a positive work environment.

Small, scattered, temporary organizations comprise the unorganized sector. Workers in this field receive less compensation.


19. Compare the employment conditions prevailing in the organised and unorganised sectors.

Explanation:

Employees in the organized industry benefit from higher pay, long-term employment, access to healthcare, and an enjoyable place to work. They are not obligated to look for work every day. The unorganized sector is notorious for its low wages, labor abuse, failure to compensate workers for extra hours, insufficient access to healthcare, and poor sanitation at work.


20.  Explain the objective of implementing the NREGA 2005.

Explanation:

All those in need of work will receive a guaranteed 100 days of job each year thanks to the National Rural job Guarantee Act of 2005. Additionally, it says that those who are unemployed will receive employment wages if employment is not provided by this act. There needs to be an increase in employment possibilities for residents of rural areas and smaller cities.


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

Explanation:

While the federal government owns organizations and fields in the public sector, citizens possess property as well as companies in the business community. The government industry strives to provide amenities for the general public while the private sector works to make money. Indian Railways, local hospitals, government organizations, and post offices are some frequent instances of the public sector that we can see all around us. We frequently encounter instances of the private sector in our daily lives, such as IT firms, shopping centers, and multiplexes.

.

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

Explanation:

Public realm activities are organized with people of all ages in mind. The governing body has made its formal debut. Sphere in order to provide the citizens of the nation with appropriate facilities. Public sector includes financial institutions, transportation, irrigation, electricity, water, and all other fundamental necessities for people. The Government is in charge of providing these amenities to its people.


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

Explanation:

The term "public sector" refers to the segment of the economy that the Indian government controls. Because this industry covers all of the population's essential requirements, including electric power, water, and agriculture, the governing body has taken control of it. The economy of a nation will collapse if these departments are not given attention because national development will halt. A nation's economic growth is influenced by the welfare of its citizens, so if those citizens lack access to the necessities of life, the nation's economy will suffer. The government supports employment under this section and promotes the growth of both small and big industries.


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

Explanation:

The informal economy consists mainly of inadequate, dispersed organizations that are not subject to the authority of the state. Although there exist regulations and norms, they are not followed. Unorganized sector employees require protection:

Wages: Unorganized sector workers' incomes are not fixed, and they hardly have enough money to cover their basic requirements. In order for these workers to grow the country and contribute to its growth, appropriate and fixed wages should be provided. For instance, a painter only receives pay on earning money on the days he serves; on the remaining days, he is jobless and unable to do so. Safety: The workforce in the unorganized industry is not given any safety. There is no employment security, and anyone can be let go or demoted based on the needs of the laborers. A construction worker, for instance, may find themselves out of a job once the structure is finished, and there is no assurance that they will ever find it again.