class x sectors of economy
Q1. Why does only final goods and services are included while calculating National Income?
Ans. Only final goods and services are included while calculating National Income because:
(a) Final goods are those goods which have crossed the boundary line of production and are ready for final consumption and investment.
(b) The value of final goods already includes the value of all the intermediate goods that are used in making the final goods. This would lead to the problem of double counting if all the goods of the economy will be included while calculating national income.
(c) This should be avoided because if the value of any commodity is counted more than once it will result in overestimation of national income.
Q2. What is the meaning of under employment? In which economic sector is under employment conditions more prevalent? Why?
Ans. A condition in which each individual appears working but no one is fully employed. This is the situation of under employment. People under such type of employment cannot utilize their potential and capacity in full. It is in primary sector because-
(i) This sector comprises the poorest section of society in majority
(ii) People engaged in this sector are illiterate or semi-literate.
Q3. What is meant by secondary sector? Explain it by giving examples.
Ans. 1. Secondary sector covers the activities in which natural products are changed into other forms through the ways of manufacturing that we associate with industrial activity.
2. The product is produced by a process of manufacturing in a factory, a workshop or at home.
3. For example, using cotton fiber from the plant, we spin yarn and weave cloth. This sector also called an industrial sector.
Q4. What do you understand by the term under employment?
Ans. 1. More than half of the workers in country are working in agriculture, producing only a quarter of the GDP.
2. In other words, workers in agricultural sector are underemployed. Each one is doing some work but no one is fully employed.
3. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. It is called disguised unemployment also.
Q5. What is the criterion to classify an economic activity as secondary sector activity? Explain.
Ans. 1. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.
2. The product is not produced by nature but has to be made by some process of manufacturing.
3. This could be in a factory, a workshop or at home. For example, using sugar canes as raw material we make sugar.
Q6.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, secondary and tertiary is useful on account of the information it provides on how and where the people of a country are employed. 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. 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. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence, it is necessary to classify economic activities into these three basic sectors for smooth economic administration and development.
Q7. 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 these determine the size of a country’s 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.
Q8.How is the tertiary sector different from other sectors? Illustrate with a few examples.
ANSWER:
The tertiary sector is different from the other sectors because it does not manufacture or produce anything. For this reason, it is also known as the service sector. It aids the primary and secondary sectors in development. The tertiary sector involves services like transport, storage of goods, communications, banking and administrative work.
Q9. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
ANSWER:
Disguised unemployment is a form of underemployment where one has a job but the work is divided. It is not apparent as compared to someone without a job who is clearly unemployed. In rural areas, this can be seen in the farming community where all members of a family might be working on a farm even though so many hands are not required. They do so because of lack of another job. In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and those doing odd jobs have work but they may not find daily or regular employment.
Q10. Distinguish between open unemployment and disguised unemployment.
ANSWER:
Open unemployment is when a person has no job in hand and does not earn anything at all. Disguised unemployment, on the other hand, is mostly found in the unorganised sector where either work is not consistently available or too many people are employed for some work that does not require so many hands. This is the essential difference between open unemployment and disguised unemployment.
Q11. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
ANSWER:
“Tertiary sector is not playing any significant role in the development of the Indian economy”. This statement is not true. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades. In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.
Q12. Service sector in India employs two different kinds of people. Who are these?
ANSWER:
Service sector in India employs two different kinds of people. These are primary and ancillary workers. Primary workers include those who directly provide services while ancillary workers are composed of those who give services to the service providers. For example, consultants make available their services to consultancy firms etc.
Q13. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
ANSWER: Workers are exploited in the unorganised sector. I agree with this view. The unorganised sector does not offer any job security. Neither does it allow for scope of trade or workers’ unions. Workers can be easily exploited in this scenario. They cannot afford to rebel against an employer’s tyranny as the latter can fire them at any time.
Q14. How are the activities in the economy classified on the basis of employment conditions?
ANSWER:
On the basis of employment conditions, activities in the economy are classified as organised and unorganised. The organised sector offers job security and employment benefits, while the unorganised sector is marked by low wages and lack of job security. In rural areas, the unorganised sector comprises landless agricultural labourers, sharecroppers and artisans. In urban areas, this group contains small-scale industry workers, construction workers, street vendors, rag-pickers, etc.
Q15. 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 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. On the other hand, 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 safe work environment.
Q16. Explain the objective of implementing the NREGA 2005.
ANSWER:
The objective of implementing the NREGA 2005 was to provide 100 days of guaranteed employment to those people in rural India who can work, and are in need of work. This Right to Work has been implemented in 200 districts. If the government is unable to provide this employment, then it has to give unemployment allowances to the people.
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