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sectors

CHAPTER-2
Sectors of the Indian Economy

SECTORS OF ECONOMIC ACTIVITIES
VERY SHORT ANSWERS:-
1. Give one example of major economic activity.
Ans. Primary sector economic activity such as cultivation of wheat.
2. What is meant by the ‘Primary Sector’?
 Ans. When we produce a good by exploiting natural resources, it is an activity of the primary sector e.g., the cultivation of cotton.
3. On what basis sectors are classified into primary, secondary and tertiary sectors?
 Ans. The nature of economic activity.
4. State any two activities which do not come under the primary sector.
Ans. Banking and insurance.
5. Why is the tertiary sector also called service sector?
Ans. Since tertiary sector activities generate services rather than goods, the tertiary sector is also called the service sector.
6. What is meant by economic activity?
 Ans. The activities that result in the production of goods and services and add value to the national income are called economic activities.
7. Which sector helps in the development of the primary and secondary sectors?
Ans. The tertiary sector helps in the development of the primary and secondary sectors.
8. What is a natural product?
 Ans. There are many activities that are undertaken by directly using natural resources. The product of this activity is a natural product. For example, milk.
9. Which are the new services included in the tertiary sector?
Ans. The new services included in the tertiary sector are based on information and technology such as internet cafe, ATM booths, call centres, software companies, etc.
10. Why is the primary sector also called as agriculture and related sector?
Ans. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector.
11. In which sector are natural products changed into other forms through ways of manufacturing?
Ans. The secondary sector.
12. Give an example of basic services.  
Ans. Banking“.
13. Which is another name of the secondary sector?
Ans. The industrial sector
14. Which is the other name of the primary sector?                 
Ans. The agriculture and related sector.
15. Which sector generates services rather than goods?
Ans. The tertiary sector
16. Classify the economy on the basis of the nature of the activity.
Ans. The primary sector, the secondary sector and the tertiary sector.
17. Define secondary sector
 Ans. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with an industrial activity
18. Bank/ATM is an example of which sector?
Ans. The tertiary sector
19. Which occupation belongs to the primary sector? Mention any one.
Or
 Mention any two activities which fall under the primary sector.
Ans. Agriculture or forestry
 SHORT ANSWERS:-
1. Which sector of the economy does provide the base for all other products? Explain with the help of any two examples.
 Ans. (1) The primary sector of the economy provides the base for all other products.
(2) (i) If farmers refuse to sell sugarcane to a particular sugar mill, the mill will have to shut down.
 (ii) This is because sugarcane is the essential raw material for the sugar industry.
(3) (i) It is the primary sector that provides iron ore or rubber to manufacture steel and a car.
(ii) Iron ore is the raw material for the steel industry
2. Classify the following ten economic activities under primary, secondary and tertiary activities. Tailoring, teaching, flower cultivation, money lending, bee-keeping, working in a factory, banking, courier, fishing, cloth making.
 Ans. These economic activities can be classified under primary, secondary and tertiary activities in the following ways :
(1) Primary Sector: Flower cultivation, bee-keeping and fishing.
 (2) Secondary Sector: Tailoring, working in a factory and cloth-making.
 (3) Tertiary Sector: Teaching, money-lending, banking and courier.
LONG ANSWERS:-
1. How are the economic activities classified in various sectors? Which of these is the most essential sector and why?
 Ans. (1) (i) Primary Sector: When we produce goods by natural resources, it is an activity of the primary sector like dairy, fishing, forestry.
 (ii) Secondary Sector: In this sector, natural products are changed into other forms through the process of manufacturing. We associate it with industrial activity. The product is not produced by nature but has to be made and therefore, some process of manufacturing is essential. For example, to make clothes, we take cotton fibre from the plant and spin yarn and then weave cloth.
 (iii) Tertiary Sector: It helps in the development of the primary and secondary sectors. They provide aid or support for the production process. Transport. storage. communication. banking, trade are some examples of tertiary activities.
(2) Most essential sector: The primary sector is the most essential sector. This is because this sector provides raw materials to the secondary sector and promotes the tertiary sector. Moreover, about two-thirds of the Indian population is directly or indirectly engaged in this sector. what is meant by the primary sector?
2. Why is it called so? Explain by giving two examples.  
Ans. (1) When we produce a good by exploiting natural resources, it is an activity of the primary sew
(2) It is called so because it forms the base for all other products that we subsequently make.
 (3) For example, (i) The cultivation of cotton. For the growth of the cotton plant, we depend mainly on natural factors like rainfall, sunshine and climate. So, raw cotton is a primary product as it is used to manufacture cotton textiles.
(ii) In the case of daily activities, we are dependent on the biological process of the animals and the availability of fodder, etc. So, the product here, milk is also a primary sector product.
3. Explain the meaning of the tertiary sector. Mention any four economic activities of this sector.
Or
Mention the three different types of services included in the service sector. Give one example of each type.                                                                      
Ans. (1) Those activities that help in the development of the primary and secondary sectors come under the tertiary sector.
(2) Different types of services included in the service sector are as follows :
 (i) Transportation: Goods that are produced in the primary or secondary sector would need to be transported by trucks and trains.
(ii) Storage: At times, it may be necessary to store these in godowns. For example, cold storage.
(iii) Communication: We may need to talk to others over the telephone or send letters.
(iv) Banking: Also, we may need to borrow money from banks to help production and trade.
In this way, transport, storage, communication, banking, trade are some examples of tertiary activities.
4. Give the characteristics of secondary sector.
Or
 How is the industrial sector dependent on the primary sector? Explain with examples.
Or
 Explain the significance and role of the secondary sector as a tool in the economic development of a country.                                                  
 Ans. The following are the characteristics of the secondary sector :
(1) The secondary sector covers those activities in which natural or primary products are changed into other forms through ways of manufacturing that we associate with industrial activity from cotton to cloth.
 (2) This sector transforms raw materials into commodities.
 (3) It uses mechanical power and skilled and unskilled labour.
(4) It gives employment to a large number of people.
(5) It creates self-sufficiency to the nation.
(6) It produces in many levels. It produces goods for local to international customers.
5. Explain the importance of the service sector.
Or
 Describe the role of the tertiary sector in the development of a country.               
Or
 Explain any five features of the tertiary sector.
Ans. (1) These are the 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 support for the production process.
(2) The development of agriculture and industry leads to the development of services such as transport, trade, storage, etc.
(3) In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, defence, transports, banks, etc. are required as basic services. Especially, in a developing country, the government has to take responsibility for the provision of these services.
 (4) As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, etc.
(5) Over the past decade or so, certain new services such as those based on information and communication technology have become important and essential.
6. What is a ‘natural product’? Explain its importance in the industrial sector with suitable examples.
 Ans. (1) Natural products are those products which are extracted from natural resources. For example, vegetables, fruits and milk.
(2) (i) These natural products are further utilized as raw materials which are further processed and converted into finished goods by the industrial sector.
(ii) For example, sugarcane is processed and converted to sugar.
(iii) Cotton is processed and converted to yarn.
7. How is the classification of economic activities into primary, secondary and tertiary useful? Explain.
Or
Do you agree that the classification of economic activities into primary, secondary and tertiary is useful? Justify your answer giving three valid arguments.
Ans. (1) Yes, this classification is useful.
(2) (i) It helps us to know the share of each sector in the GDP.
(ii) It tells us about the employment in each sector.
(iii) It gives a correct picture of the importance of each sector.
 (iv) It helps in planning for the future.
8. Explain the interdependence of all the three economic sectors giving examples from the transportation system.
Or
Explain with an example of the interdependence of all the three sectors of the economy.
Or
All three sectors of the economy are interdependent. Explain their inter-dependence taking iron ore as an example.                                                                      
Or
With the example of sugarcane, explain the interdependence of all the three sectors of the economy.                                                                                                                                
 Ans. (1) When we exploit natural resources, it is an activity of the primary sector that includes, agriculture, mining, forestry. For example, the production of sugarcane, mining of iron ore.
(2) The natural resources are changed into other forms through the process of manufacturing, or manufacturing or secondary sector uses natural products as its raw materials. For examples, sugarcane is used as raw material for the production of sugar. Similarly, iron ore is used to produce steel.
 (3) All services, that enable us to pursue primary and secondary activities are listed as tertiary activities. For example, transport, education, medical services. i.e., transportation is needed after the production of sugar or steel.
(4) Primary and secondary activities cannot produce well unless they are aided by the tertiary sector.
(5) Service sector does not produce a good. The internet café, ATM booth, call centres are the services required for manufacturing industries etc. Railways, roads are needed to assist agricultural production.
10. How do tertiary sector activities help in the development of the primary and secondary sectors? Explain.
Ans. (1) Tertiary sector activities themselves do not produce a good. But, they support the other two activities of primary and secondary sectors.
(2) As they provide transportation, banking, storage, communication, etc., they help to pursue primary and secondary activities.
 (3) Internet cafe, ATM booth, call centres are the services required for manufacturing industries whereas railways, roads are needed to assist agricultural production.
COMPARING THE THREE SECTORS
VERY SHORT ANSWERS:-
1. What do you understand by the GDP of a country?
Ans. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of products in the three sectors gives us the Gross Domestic Product (GDP) of a country
2. State the method of calculating Gross Domestic Product.
Ans. GDP is the value of all final goods and services produced within a country during a particular year. A central government ministry in India with the help of various government departments collects information relating to the total volume of goods and services and their Prices and then estimates the GDP.
3. Why are only ‘final goods and services’ counted while computing total production?
Ans. The value of final goods and services already includes the value of all the intermediate goods and services that are used in making the final good.
4. What does double counting mean?
Ans. The value of final goods already includes the value of all the intermediate goods, so count the value of intermediate goods and final goods separately will be double counting.
5. What is the GDP (Gross Domestic Product)?
 Ans. Gross Domestic Product (GDP) is the value of all final goods and services produced in a country during a particular year.
6. What term is used for the value of all final country during a particular year?
Ans. Gross Domestic Product (GDP).
7. What do final goods and services mean?
Or
What is meant by final goods and services?                                                   
 Ans. They mean various goods and services meant for consumption by consumers.
8. What does GDP stand for?  
Ans. Gross Domestic Product
 SHORT ANSWERS:-
1. How do we count and calculate the value of goods and services in the three economic sectors? Explain with the help of a suitable example.
 Ans. (1) The value of final goods and services produced in each sector during a particular year is counted and calculated.
(2) For example. (i) A farmer sells wheat to a flour mill for Z 15 per kg.
 (ii) The mill grinds the wheat and sells the flour to a biscuit company for Z 20 per kg.
(iii) The biscuit company uses flour and things such as sugar and oil to make four packets of biscuits. It also uses services in this process such as banking, transportation, etc.
 (iv) It sells biscuits in the market to the consumers for Z 120 per kg. i.e. ,T 30 per 250 gram packet.
 (v) Biscuits are the final goods. The values of these are counted and calculated.
2. Distinguish between final goods and intermediate goods. How do they help in calculating GDP?
Or
Differentiate between final goods and intermediate goods with the help of examples.
Ans. (1)
Final Goods Intermediate Goods
(i)These goods are used for final
(ii) Final goods are included in GDP.
(iii) For example, furniture, machines, etc. (i)These goods are meant for further consumption. production.
(ii) These goods are not included in GDP to avoid the problem of double counting.
(iii)For example, wood is an intermediate good etc.
 (2) Intermediate goods are used up in producing final goods. For example, the value of biscuits already includes the value of wheat, sugar, oil. etc. So, the value of these goods is not included for this purpose in calculating GDP, while final goods are included in calculating GDP.
3. What is meant by Gross Domestic Product (GDP)? How is GDP measured in India?
Or
Explain the meaning of GDP. How is it calculated?                      
Or
What is GDP? Explain with an example the method of calculating Gross Domestic Product.                                                                                       
Or
 What is meant by Gross Domestic Product? Explain the process to calculate the Gross Domestic Product.                                                                                                                                    
Ans. (1) GDP stands for Gross Domestic Product.
 (2) (i) The value of final goods and services produced in each sector during a particular Year provides the total production of the sector for that year.
  (ii) The value of the final good (for example, a packet of biscuits) is only used to calculate GDP because the value of the intermediate goods i.e., flour and sugar, is included in the final good.
LONG ANSWERS:-
1. Describe the historical changes in the economic sectors over the last hundred years.
Or
 ‘When a country develops, the contribution of primary sector declines and that of secondary and tertiary sectors increases.” Analyze the statement.
Ans. (1) (i) the history of developed countries indicates that the initial stage of development, the primary sector was the most important sector of economic activities.
(ii)As the methods of fanning changed and agriculture sector began to prosper, it produced much more food than before and most people were also employed in this sector.
(2) (i) Over more than a hundred years, when new methods of manufacturing were introduced, factories came up and started expanding.
 (ii) In this way, the secondary sector gradually became the most important in total production and employment.
(3) In the past 100 years, there has been a further shift from secondary and tertiary sectors in developed countries. The service sector has become the most important in terms of total production. This is the general pattern observed in developed countries.
PRIMARY, SECONDARY AND TERTIARY SECTORS IN INDIA
VERY SHORT ANSWERS:-
1. Which sector has grown by 11 times in recent years?
 Ans. The Tertiary sector has grown by 11 times in recent years.
2. What is the share of the Tertiary Sector in GDP in 2011-12?
 Ans. The share of the Tertiary Sector in GDP in 2011-12 is about 60%.
3. In which year was the National Rural Employment Guarantee Act implemented?
Ans. National Rural Employment Guarantee Act was implemented in 2005.
4. Which organization has estimated that 20 lakh jobs can be created in the education Sector alone?
 Ans. The Planning Commission of India has estimated that 20 lakh jobs can be created in the education sector alone.
5. Give one suggestion to tackle the problem of unemployment in semi-rural areas.
Ans. Agro-based industries should be encouraged.
6. Presently in which sector are most of the people employed in India?
Ans. Presently in Agriculture Sector most of the people are employed in India.
7. Which sector has gained prominence over the last thirty years?
Ans. The Tertiary Sector has gained prominence over the last thirty years.
8. Through which act ‘Right to Minimum Work’ is implemented?
Ans. Through Mahatma Gandhi National Rural Employment Guarantee Act, 2005 tight to Work’ was implemented.
9. How can a skill development programme create employment opportunities in rural areas?
Ans. Since education and skill increase the employability among the people, skill development programmes create employment opportunities in rural areas.
10. Which was the largest producing sector in 2011-12?
 Ans. The tertiary sector was the largest producing sector in 2011-12.
11. Name the sector which continued to be the largest employer till in the year 2000.
Ans. The primary sector continues to be the largest employer even now.
12. Suggest any one way to create employment opportunity in rural areas.
Or
 Suggest any two measures to reduce unemployment.
Ans. Agro-based industries should be set up and public facilities such as transport and storage facilities can be developed.
13. What is another name of underemployment?
Ans. Another name of underemployment is disguised unemployment.
14. In which sector did production rise by 11 times while employment rose less than three times?
Ans. The service sector
15. Which sector is gaining prominence over the last thirty years?          
Ans. The tertiary sector
16. What term is used to describe a situation in which more persons are employed on a job than required?                         
Ans. Underemployment
LONG ANSWERS:-
1. Explain why the service sector is gaining more importance in the global economy.
Ans. The service sector gaining more importance in the global economy for the following reasons.
( I ) In any country several services such as a hospital, educational institutions, postal services, police stations, courts, etc. are required. The government has to take responsibility for the provision of these basic services.
 (2) The development of agriculture and industry leads to the development of services such as transport, trade, storage, banking, etc.
 (3)As income levels rise, certain sections of people start demanding many more services like private schools, and hospitals, eating outlets, tourism, etc.
 (4) This sector has included certain new services such as information and communication technology. The production of these services has been rising rapidly.
 (5) There are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, as well as highly skilled and educated workers.
2. What is disguised unemployment? Suggest any two measures to reduce unemployment.
 Ans. (1) When people are visibly employed but actually unemployed, this situation is known as disguised or hidden unemployment. In such a situation, more people are engaged in work than required. This type of unemployment is generally found in the agricultural sector.
(2) (i) Darns, canals, tube wells for irrigation purpose should be constructed.
 (ii) Public facilities such as transport and storage facilities should be developed. And agro-based industries can be set up.
3. How can tourism provide additional employment to lakhs of people? Explain.
Ans. Tourism can provide additional employment to lakhs of people in India in the following ways :
(1) The government should take initiatives to increase especially medical tourism in India. This may be attractive for foreign tourists as medical treatment in India costs almost one-fifth in comparison to the developed countries like the U.S.A.
(2) Infrastructure should be increased and tourism should be promoted.
(3) Measures should be taken for the beautification of tourist places.
(4) We need to improve our public services and foster basic hygiene if we want to appeal to foreign tourists.
 (5) India needs to improve its transportation facilities and to market itself to the world as a unique and incredible country. Also, we have to offer many special facilities to the visiting tourists.
4. Why has the entire tertiary sector not grown in importance? Explain.
Ans. The entire tertiary sector has not grown in importance for the following reasons:
 (1) The service sector in India employs many different kinds of people.
(2) At one end, there are limited numbers of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.
(3) These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
5. Occupational distribution of workforce (%)
Year Primary Sector Secondary Sector Tertiary Sector
1951 72.1 10.7 17.2  
2001 60.8 17.1 22.1
                                                                                                  (Source: Economic Survey, 2001)
 On the basis of data given in the above table, answer the following questions:
 (i)Why is the number of people occupied in the primary sector?
(ii) What has been the percentage increase in the workforce in the secondary sector in the last 50 years?
WO Why has the workforce shown a decline in the primary sector?
Ans. (i) This has the following reasons:
 (a) In India, labour is cheaper than machines due to high population.
(b) Rural illiteracy does not offer more options to the family members of a farmer and Renee, all are disguisedly employed on the same farm.
 (ii) There has been an almost 60% increase in the workforce in the secondary sector in the last 50 years.
 (iii) This is because, with the development of the economy, the workforce has shifted from
6. Explain the problem of underemployment in the service sector in urban areas with examples.
Ans. (1) Underemployment is the situation where people are apparently working but all of them are made to work less than their potential.
(2) There are thousands of casual workers in the service sector in urban areas who search for daily employment.
 (3) They are employed as painters, plumbers, repair persons and others doing odd jobs.
 (4) Many of them don’t find work every day.
(5) Similarly, we see other people of the service sector on the street pushing a cart or selling something where they may spend the whole day but earn very little. They are doing this work because they do not have better opportunities.
7. “The tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give arguments in support of your answer.
 Ans. (1) No, I do not agree with the statement that the tertiary sector is not playing any significant role in the development of Indian economy.
(2) This has the following reasons:
 (i) In terms of GDP, this sector has emerged as the largest producing sector in India replacing the primary sector. In 1973, the share of the tertiary sector in GDP was about 35% which increased to about 60% in 2011-12. About 40 years between 1973 and 2011-12, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
 (ii) In terms of employment, the rate of growth in employment of tertiary sector between the same period was nearly 300% while that of the secondary sector was 250% whereas this was negligible in the primary sector of the economy.
8. What is GDP? Assess the contribution of secondary and Tertiary Sectors to the GDP of India.
Or
 When was Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) implemented by the government? Mention its two features.
Ans. (1) Gross Domestic Product (GDP) refers to the money value of final goods and services produced in each sector.
 (2) (i) The contribution of the secondary sector to the Gross Domestic Product (GDP) in India is about 24%.
(ii) The contribution of the tertiary sector to the Gross Domestic Product (GDP) in India is about 53%.
9. NREGA, 2005 is referred to as ‘Right to work’. Justify the statement.
Or
State any three features of the National Rural Employment Guarantee Act, 2005.
Or
 What has been the role of NREGA in creating employment for the people in India?
Or
 Describe any five provisions of ‘National Rural Employment Guarantee’ Act, 2005.
Or
 How has NREGA, 2005 helped the government in combating unemployment in India?
Ans. The provisions of NREGA, 2005 are as under :
(1) All those who are able to and are in need of work have been guaranteed 100 days of employment in a year by the government.
(2) If the government fails in its duty to provide employment, it will give unemployment allowances to the people.
 (3) The types of work that would in the future help to increase the provision from land will be given preference under the Act.
(4) It promotes decentralization of planning and empowers panchayats to plan and execute them.
 (5) 1/3 of the jobs are reserved for women.
10. What is the main contribution of agriculture to the national economy? Explain any three aspects taken by the government of India to modernize agriculture.
Ans. (1) (i) The agriculture sector continues to be the largest employer even in the year 2000.
(ii) It produces about a quarter of the GDP of India.
(2) The government of India has taken the following steps to modernize agriculture :
(i) The government has promoted modern methods of farming. It has developed irrigation facilities, constructed new dams and dug canals to irrigate farms.
(ii) It has encouraged farmers to use chemical fertilizers and pesticides.
 (iii) The government has invested money in transportation, storage of crops, making better rural roads so that farmers can continue to grow and sell these crops.
(iv) The government has made provisions for Kinas Credit Card for easy availability of capital at a reasonable rate of interest.
(v) It has encouraged farmers for multiple cropping.
11. ‘There has been a big change in the three sectors of economic activities in India but a similar shift has not taken place in the share of employment’. Explain the above statement on the basis of facts.             
 Ans. (1) In the agricultural sector, the methods of farming have changed. Use of chemical fertilizers and pesticides increased production of a cash crop, use of modern equipment for farming, increased irrigation facilities, etc. are some noticeable changes. Still, more than half of the workers in the country are working in the primary sector that produces only less than mile-fifth of the goods.
 (2) Industrial output increased by 9 times from 1973 to 2012 but employment in the sector increased by around three times.
(3) In the tertiary sector, the production of services rose by more than 14 times from 1973 to 2012 but employment in the services rose only around five times.
 (4) Secondary and tertiary sectors produce three-fourths of the product whereas they Lily employ half the country’s workers.
(5) The Indian agriculture sector has disguised unemployment whereas workers in the see Gadara and tertiary sectors work overtime.
12. How can income and employment be increased if farmers are provided with a loan or irrigation facility? Explain with the help of an example.
Or
 How would a farmer increase his income and employment if he is provided with the loan, irrigation facilities and means of transportation?
Ans. If farmers are provided with a loan or irrigation facilities, income and employment can certainly be increased in the following ways :
Loan facility : (i) As we have seen in the case of Lama in our textbook, farmers need seeds, fertilizers, agricultural equipment and pump sets to draw water. Poor farmers cannot afford many of these. So, they have to borrow money from the village moneylenders and pay a high rate of interest.
(ii) If they are provided with a loan to buy these inputs at a reasonable rate of interest, they can save money given as high interest and increase their income.
(iii) If they get loan easily at a reasonable rate of interest, they will be able to take second and third crops. In this way, they will be able to increase their employment opportunities.
(2) Irrigation facilities: Water is essential for agricultural production. But rainfall, in many areas, is not only inadequate but also uncertain. So, in these areas, irrigation facilities will be helpful in growing more than one crop in the year. Obviously, as we grow more crops, more income and employment will generate on the same piece of land.
13. “Service sector in India employs two different kinds of people”. Who are these?
 Ans. (1) The service sector in India employs many different kinds of people.
 (2) At one end there are a limited number of services that employ highly skilled and educated workers.
(3) On the other hand, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.
(4) These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
 (5) Hence, only a part of this sector is growing in importance.
14. Describe any three basic services that a government has to provide to its citizens.
Ans. The following are the basic services that a government has to provide to its citizens:
(1) In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
(2) In a developing country, the government has to take responsibility for the provision of these services.
(3) Greater the development of the primary and secondary sectors more would be the demand for such services.
15. Why does disguised unemployment not help to enhance the productivity of the country? Explain with the help of an example.
Ans. (1) Underemployment or disguised unemployment is the situation when the people are visibly employed but actually, they are unemployed.
 (2) In this situation, more people are engaged in work than required. That is, they are made to work less than their potential. In this way, disguised unemployment becomes a constraint to enhance the productivity of the country.
 (3) In the situation of disguised unemployment, if some people are moved out, production will not be affected. So, this is a situation of idleness of our workforce.
 (4) For example, Rohan and his family have an agricultural plot where they find work. The field requires the service of five people but engages all eight family members. The three breaths of air people are disguisedly employed.
 (5) Disguised unemployment has a detrimental impact on the overall growth of an economy. It wastes the resource which could have been gainfully employed.
16. How can tourism provide additional employment to lakhs of people? Explain.
Ans. (1) Tourism can definitely provide additional employment to lakhs of people.
 (2) According to the Planning Commission of India, if tourism as a sector is improved, every year we can give additional employment to more than 35 lakh people.
(3) For this, the tourism industry in India would require proper planning and support from the government.
(4) India needs to improve its public services and foster basic hygiene if it wants to appeal to foreign tourists.
(5) India needs to improve its transportation facilities and to market itself to the world as a unique country with much to offer to the visiting tourists.
17. Explain the meaning of underemployment with an example.                         
Or
 Underemployment taking an example from some non-agricultural field.
                                                                       Or
Explain the concept of underemployment in urban areas with the help of examples.
Ans. (1) The underemployment is a situation where people are apparently working but all of them are made to work less than their potential. Here, each one is doing some work but no one is fully employed.
(2) This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
(3) For example, Rohit and his family have an agricultural plot where they find work. The work requires the service of five people but all eight members of the family are engaged in it. In this way, three extra people are underemployed. If these three people are removed, the productivity of the field will not decline.
(4) This usually happens among family members engaged in agricultural activity.
(5) Examples from the non-agricultural field may be casual workers in the service sector such as painters, plumbers, repair persons, rickshaw-pullers, etc.
18. Study the graph given below and answer the following questions:
 Share of Sectors in GDP (%) 100%   90%   80%  
Explain the concept
Rs. in cores
70% —
Jed Tertiary sector Secondary sector Primary sector
 (a)Which was the largest producing sector in 1971-72? Write one main economic activity of this sector.
(b) What is the approximate contribution of secondary sector in GDP (%) in 2011-127 What another term can be used for the secondary sector?
 (c) Define the term GDP.
 (d) Which sector has emerged as the largest producing sector in the Indian economy in 2011-12 and why?
Ans. (a) (i) Primary sector was the largest producing sector in 1971-72.
 (ii) Agriculture is the main economic activity of this sector.
(b) (i) The approximate contribution of secondary sector in GDP (%) was 22% in 2011-12.
(ii) The industrial sector
(c) Gross Domestic Product (GDP) is the value of all final goods and services produced within a country during a particular year.
(d) (i) The tertiary sector
 (ii) This has the following reasons :
• The development of agriculture and industry leads to the development of services such as trade, transport, storage, etc.
• As income levels rise, certain sections of people start demanding many more services.
• Certain new services such as those based on information and communication technology have become important and essential.
19. How far is it correct to say that in the recent past, India has experienced some significant changes in the contribution to GDP by the service sector? Explain.
 Ans. It is absolutely correct to say that in the recent past, India has experienced some significant changes in the contribution to GDP by the service sector. This has the following reasons :
(1) In terms of GDP, the service sector emerged as the largest producing sector in India replacing the primary sector.
 (2) In 1971-72, the share of the tertiary sector in GDP was about 35% which increased to about 60% in 2011-12. About forty years between 1971-72 and 2011-12, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
 (3) In terms of employment, the rate of growth in employment of tertiary sector between the same period was nearly 300% while that of the secondary sector was 250%. This was negligible in the primary sector.
(4) As incomes of the people rise, they begin to demand many more services like eating out, tourism, shopping, etc.
(5) Particularly, over the past decade or so, certain new services such as those based on information and communication technology have become important and essential.
20. Enumerate the various causes of rural unemployment in India.
Ans. (1) The rate of growth in employment of the tertiary sector and secondary sector between ) 1971-72 and 2011-12 were nearly 300% and 250% respectively. While this was negligible in the primary sector where most of the rural people are involved.
(2) Rural people lack in education and skill. Generally, they are illiterate and ignorant. So, they lag behind in employability.
(3)They are generally involved in their family business. They do not tend to go beyond it. So, they are underemployed.
21. What is meant by disguised unemployment? Explain with an example each from urban and rural areas.
Or
 Define ‘Disguised Unemployment’? Explain with an example of how disguised unemployment is observable in rural and urban areas?
Ans. (1) Disguised unemployment is a situation in which more persons are employed in 8 jobs that are optimally required. If a part of the labour force is withdrawn, the total diction remains unchanged. Pre
(2) (i) In urban areas, painters, plumbers etc. who do not find work every day.
(ii) In rural areas, farmers and farm labourers who work together irrespective of the amount of work.
22. How can more employment opportunities be created in rural areas? Explain with examples.  
Or
 How can unemployment be tackled in semi-rural areas? Suggest any three ways.
Or
Explain any five ways to increase the income and employment in the rural and semi-rural areas.                                                                                                                               
Or
Suggest five measures to create more employment opportunities in rural India.
Ans. Employment opportunities can be increased by adopting the following measures:
 (1) Dams, canals, tube wells for irrigation should be constructed.
(2) Public facilities such as transport and storage facilities should be developed.
(3) Agro-based industries can be set up.
 (4) Provision for education and health services should be made.
(5) Rural crafts and rural tourism should be promoted.
23. Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the national GDP?  
Ans. (1) The primary sector is the largest employer in India.
(2) (i) This is because there are more people in agriculture than necessary. The workers are underemployed.
(ii) Workers in agriculture are not producing as much as they could.
(iii) Agriculture still is largely subsistence in nature in India and not adequately diversified in order to be able to generate more wealth. Also, this sector has disguised unemployment.
24. How far is it correct to say that disguised unemployment can also be called underemployment? Explain.
 Ans. (1) Disguised unemployment is a situation in which unemployment exists but is apparently hidden.
(2) It occurs when more people are engaged in activity than required.
(3) Underemployment is a situation in which a person is employed but is made to work less than his potential.
 (4) Disguised unemployment and underemployment are the same that can be illustrated tram the following example.
(5) Five members of family work in a plot which can give full employment to only two arsons. Thus, all of them appear to be employed but they all are underemployed. It may be said that two persons are fully employed and the three are unemployed. Therefore, there is disguised unemployment, the three appear to be employed but are actually unemployed.
25. Suggest any five ways and measures to increase employment opportune.
Or
Explain any three ways to increase employment in rural areas.      
Or
 In what ways can employment be increased in urban areas? Explain with examples.
Ans. (1) The education system should be made employment-oriented. Vocational training should be merged in mainstream education pattern.
 (2) The government should encourage cottage and small-scale industries, agro-based, handicraft industries, etc.
(3) Cheap credit should be provided so that people may take up new enterprises. Encouraging foreign investment will also generate employment.
(4) Labor intensive techniques should be adopted in place of capital intensive techniques. Research and development work in all sectors must be promoted to evolve new avenues of generating employment.
 (5) The government should frame policies to promote business activities to enhance growth and employment. Sectors like education, health, banking must be promoted which have huge job opportunities.
26. What is unemployment? Describe any four types of unemployment found in India.
Ans. (1) Unemployment is said to exist when people (between 15 and 59 years) who are willing to work at the prevailing wages, cannot find jobs. The workforce population includes people from 15 years to 59 years.
(2) (i) Seasonal unemployment: This happens when people are not able to find jobs during some months of the year. For example, people dependent upon agriculture usually face such kind of unemployment.
(ii) Disguised unemployment: In the case of disguised unemployment, people appear to be employed, but actually they are unemployed. In this situation, more people are engaged in work than required. That is, they are made to work less than their potential.
(iii) Open unemployment: This is a situation when the person does not have a job and is clearly visible as unemployed. This is also called visible unemployment.
(iv) Educated unemployment: This type of unemployment happens when many youths with matriculation, graduation and post-graduation degrees are not able to find a job.
27. Highlight any three factors responsible for the growth of the service sector in the Indian economy.
Or
 Explain the tertiary sector? Why is this sector becoming important in India? Give four reasons.                                                                                                                            
Or
Give any five reasons for the rising importance of the Tertiary Sector in Production.
Ans. (1) The development of agriculture and industry leads to the development of services such as transport, trade, storage, etc.
(2) In any country, several services such as hospitals, educational institutions, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance, etc. are considered as basic services. In a developing country, the government has to take responsibility for the provision of these services.
 (3) As income levels rise, certain sections of people start demanding many more services Like eating out, tourism, shopping, etc.
DIVISION OF SECTORS AS ORGANISED AND UNORGANISED
VERY SHORT ANSWERS:-
1. How does the public sector help in the development of a country?               
 Ans. Public sector helps in the development of a country through the creation and expansion of infrastructure and employment opportunities.
2. In which sector are a large number of workers losing their job since 1990?
Ans. Since the 1990s, a large number of workers losing their jobs in the organized sector.
3. Why is there an urgent need to protect workers in the unorganized sector? Give one reason.
Ans. The unorganised sector includes small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed.
4. Give one difference between organised and unorganised sector on the basis of working conditions of the labour.
Ans. The organised sector follows government rules and regulations like the Factories Act, Industrial Disputes Act, Minimum Wages Act, etc. While in the unorganised sector, government rules and regulations are not followed.
5. What does the unorganized sector comprise in rural areas?                            
Or
Which types of people are comprised under the unorganized sector in rural areas?
Ans. Landless agricultural labourers, marginal farmers, etc. comprise the unorganised sector in rural areas.
6. In which sector are the terms of employment regular?
Ans. The organised sector.
 LONG ANSWERS:-
1. Ramesh works as a driver in a government department whereas Karunesh works as a mechanic in a private workshop. Whose job is more unproductive and how?
Ans. (1) The job of Karunesh is more unproductive.
(2) This has the following reasons:
 (i) Unlike the government sector, the private workshop does not follow government rules and regulations.
(ii) There are a low salary and no regular employment.
 (iii) There is no provision of overtime, paid leave, holidays, leave due to sickness, etc.
(iv) There is no job security. People may be asked to leave the job without any reason, or when there is less work, or on the whim of the workshop owner.
2. Why do people prefer to work in an organized sector? Explain.
Ans. People prefer to work in an organized sector for the following reasons:
(1) The organized sector follows government rules and regulations like the Factories Act, in, qua, trial Disputes Act, Minimum Wages Act, etc.
(2) The terms of employment are regular. People have assured work.
(3) People get a regular monthly salary.
 (4) Employees get paid leave benefit, pensions, gratuity, etc.
 (5) People work only for a fixed number of hours. If they work more, they get paid overtime.
3. What is an organised sector? Elaborate on the working conditions of the organized sector in India.  
Ans. (1) An organized sector refers to the sector of economic activities that covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
(2) (i) The enterprises in this sector are registered by the government. They follow government rules and regulations like the Factories Act, Industrial Disputes Act, Minimum Wages Act, etc.
(ii) The terms of employment are regular. People have assured work.
 (iii) Workers in the organized sector enjoy the security of employment.
 (iv) They are expected to work only a fixed number of hours. If they work more, they have to pay overtime by the employer.
(v) Employees get paid leave benefit, pensions, gratuity, etc.
4. Rekha’s income is more than her sister. But Rekha works in an unorganized sector whereas her sister is employed in the organised sector. Who amongst the two is at an advantageous position and why?                       
Ans. (1) Rekha’s sister is in an advantageous position.
(2) This has the following reasons:
(i) The employees of organized sector get paid leave benefit, pensions, gratuity, etc. apart from salary
(ii) The organized sector follows government rules and regulations like Factories Act, Minimum Wages Act, etc.
 (iii) Workers enjoy the security of employment.
(iv) The working atmosphere of the organization is supported.
(v) The organization provides proper time and facilities for the family.
5. Describe any five activities where the government must spend for the welfare of the worker of the unorganised sector.         
 Ans. The government must spend in the following activities for the welfare of the worker of the unorganised sector:
(1) The government should support landless agricultural labourers, marginal farmers, etc. through the adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities, etc.
 (2) Since casual workers are generally in small-scale industries, these industries need government’s support for procuring raw materials and marketing of output.
(3) Workers from SCs, STs and OBCs find themselves in the unorganised sector. The government needs to protect and support them through spending, laws and ensuring the dignity to individuals.
(4) The government should devise schemes for the education, skill development, social security of workers working in the unorganised sector.
(5) A statutory board can be set up for overlooking as well as suggesting over the law for the protection of people from the unorganised sector.
6. Analyse the characteristics of jobs in the unorganised sector.
Or
 Why is there an urgent need to protect workers in the unorganised sector? Explain.
Or
Explain the working conditions of workers employed in the unorganised sector.         
Or
 “Workers are exploited in the unorganised sector.” Do you agree with the statement? your answer giving valid reasons.
Or
Define the term ‘Unorganised Sector’. Mention any six disadvantages of working in this sector.                                               
Ans. The following are the characteristics of jobs in the unorganised sector :
(1) The unorganised sector includes small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed.
 (2) There is no formal process and procedures. The person is not given any formal letter by the employer.
 (3) Jobs are low-paid and often not regular. Workers can be removed at any time without assigning a reason.
(4) There is no fixed number of working hours. Also, there is no provision of overtime.
(5) People get daily wages.
(6) There is no provision of other benefits apart from daily wages. There is no leave, paid holidays or leave due to sickness, etc.
7. What constitutes the unorganised sector in urban areas? Why do workers in this sector need protection?
Ans. (1) The unorganised sector in urban areas constitutes casual workers especially in construction, trade and transport as well as the people who are employed on their own doing small jobs such as selling on the street or doing repair work.
 (2) Workers in this sector need protection for the following reasons :
(i) This sector does not follow government rules and regulations.
(ii) There is a low salary. The minimum wages are not fixed and there is no regular employment.
(iii) There is no provision of overtime, paid leave, holidays, leave due to sickness, etc.
(iv) There is no job security. People may be asked to leave without any reason, or when there is less work or on the whim of the employer.
8. How can workers employ in the unorganised sector be protected? Explain with three examples.                  
Ans. The workers employed in the unorganised sector can be protected in the following ways :
 (1) Minimum Wages Act should be implemented strictly in the agricultural sector so that landless agricultural labourers could get minimum wages.
(2) Especially, small farmers should be supported through timely delivery of seeds, agricultural inputs, credit, marketing, storage facilities, etc.
(3) In urban areas, casual workers need government support in implementing the law. The government should devise schemes for their literacy, skill development, social security, etc.
(4) Small-scale and cottage industries should be encouraged. They need support for Procuring raw materials, marketing, loans at cheap rates, etc.
(5) A statutory board can be set up for overlooking as well as suggesting over the law for Protection of people from the unorganised sector.
9. In what three ways in the organized sector better than unorganized sector? Explain.
Or
 With unorganised with five examples the working conditions prevailing in the organised sector b, TVIL unorganised sector.                      
Ans.
Organised Sector Unorganised Sector
(1)The organised sector covers those enterprises or places of work where the terms by small and scattered units which are of employment are regular.
(2) This sector follows government rules largely outside the control of the government.
  (3) The terms of employment are regular People have assured work.
(4) People get a regular monthly salary.
(5) Employees get paid leave benefit, pensions, gratuity, etc.
(6) People work only for a fixed number of If they work more, they get paid overtime. (1) The unorganised sector is characterized and therefore, people have assured work.
(2) The government rules and regulations and regulations like the Factories Act, Industrial are not followed. Disputes Act, Minimum Wages Act, etc.
(3) Jobs are low-paid and often not regular. Workers can be removed at any time without assigning a reason.
(4) People get daily wages.
(5) There is no provision of other benefits apart from daily wages.
(6) There is no fixed number of working hours. hours. Also, there is no provision of overtime.
10. “Workers are not exploited in the organised sector.” Do you agree with the statement? Explain the reasons given in support of your answer.
Or
Explain the advantages of working in an organised sector.                                              
Ans. (1) Yes, I agree with the statement that workers are not exploited in the organised sector.
(2) This has the following reasons :
(i) The organised sector follows government rules and regulations like the Factories Act, Minimum Wages Act, Industrial Disputes Act, etc.
(ii) In this sector, the terms of employment are regular and people have assured work.
(iii) People work only for a fixed number of hours. If they work more, they get paid overtime.
(iv) People get a regular monthly salary.
(v) Employees get paid leave benefits, pensions, gratuity, etc.
11. Why is agriculture an activity of unorganised sector in India? Explain.
Or
Agriculture is an activity of the unorganized sector in India. Do you agree with this statement? Justify your answer with suitable examples.
Ans. (1) I agree with the statement that agriculture is an activity of the unorganised sector in India.
(2) (i) There is no fixed number of working hours. The labourers have to work normally for 10-12 hours without paid overtime.
 (ii) Agricultural labourers get no other allowances apart from daily wages.
 (iii) Agricultural labourers have no job security.
 (iv) Government rules and regulations to protect the labourers are not followed.
 (v) They are often exploited and not paid a fair wage.
12. Describe any five conditions or aspects that you would consider before accepting a job?
Or
 If you get a job in a far off place before accepting it, you would try to consider many factors. Explain any five such factors.
 Ans. I would consider the following factors before accepting the job :    
 (1) I would consider the working atmosphere of the organisation that must be supportive.
(2) The organisation should allow me to give proper time for my family. Also, I would consider the facilities given by the organisation of my family.
(3) Opportunity to learn while working would be taken into account.
 (4) Job security would be a major factor for me.
(5) Many industries are hazardous in nature that would also be kept in mind.
13. Write two groups of people working in the unorganised sector who are in need of protection. Flow can the government protect them?
Or
How can the workers in the unorganised sector be protected? Explain.
Or
Suggest any four ways to protect workers in the unorganised sector.                       
 Ans. (1) In the unorganised sector, mostly landless agricultural labourers, casual workers and artisans are included.
(2) The following measures can be adopted to protect the labourers in the unorganised sector :
(i) Farmers need to be supported through the timely delivery of seeds, agricultural inputs, credit, marketing, storage facilities, etc.
(ii) In urban areas, casual workers need government support for procuring regular jobs.
 (iii) The small-scale industry also needs support for procuring raw materials, marketing, loans at a cheap rate.
(iv) There should be strict implementation of the Minimum Wages Act, Factories Act, etc.
(v) The government should devise schemes for their literacy, skill development, social security, etc.
(vi) A Board can be set up for overlooking as well as suggesting over the law for the protection of people from the unorganised sector.
SECTORS IN TERMS OF OWNERSHIP: PUBLIC AND PRIVATE SECTORS
VERY SHORT ANSWERS:-
1. Give an example of the private sector in production.                        
Ans. Reliance Industries Ltd.
2. How do big private companies contribute to the development of a nation?     
Ans. They contribute to the Gross Domestic Product (GDP) and create employment poor unities in the country.
3. Classify the economy on the basis of ownership.
Ans. On the basis of ownership, the economy can be classified into Public and Private Sectors.
4. Give one difference between the public and private sectors in an economy.
Ans. The purpose of the Public Sector is not just to earn profits while activities in the ate sector are guided by the motive to earn profits only.
5. How does the public sector help in the development of a country?
Ans. There are several things needed by society as a whole. Some of these need spending large sums of money. Public sector promotes economic development through the creation and expansion of such infrastructure.
6. How does the public sector play an important role in the economy of India?
Ans. The public sector plays an important role in the economy of India by creating and expanding infrastructure such as the construction of roads, bridges, railways, schools, hospitals, etc.
7. State the basis on which are the sectors of economy classified into public and private?
Ans. Sectors are classified into public and private on the basis of who owns assets and is responsible for the delivery of services.
8. In which sector government owns most of the assets and provides the basic services?
Ans. The Public Sector
9. Both TISCO and Reliance are owned by which sector?
Ans. The Private Sector
10. Who has the ownership of the assets in the Public sector?                 
Ans. The government
11. What is the aim/intention of the government in raising money through taxes?
Or
 What is the aim of the government in raising money through taxes?           
Ans. The government raise money through taxes to meet expenses on the services rendered by it.
 LONG ANSWERS:-
1.State any five features each of public sector and the private sector.  
Ans. (1) Features of Public Sector
(i)The public sector provides various things needed by society as a whole, e.g. roads, bridges, railways, etc.
(ii) The purpose of this sector is not just to earn profit but to social service.
 (iii) It is the duty of the government to take care of the poorest and most ignored regions of the country
(iv) It creates employment opportunities through the creation and expansion of infrastructure.
 (v) It controls private monopolies.
 (2) Features of Private Sector
(i) The ownership of assets and delivery of services is in the hands of private individuals or companies.
(ii) The purpose of the private sector is to earn profits only.
(iii) This sector does not invest large sums of money for the things needed by society as a whole.
(iv) The companies of this sector charge a high rate for public facilities.
(v) They do not take much interest with regard to social services or the poorest and most ignored regions of the country.
2. How does the public sector help in the development of a country? Explain.
Or
 Explain with suitable examples of how public sector contributes to the economic development of the nation.                                                                                                                                       
Ans. The public sector helps in the development of a country in the following ways :
(1) There are several things needed by society as a whole. Some of these need spending large sums of money. The government undertakes such heavy spending and ensures that these facilities are available to everyone. For example, the construction of roads, bridges, railways, harbours, generating electricity, etc. Thus, it promotes economic development through the creation and expansion of infrastructure. It creates employment opportunities.
 (2) It generates financial resources for development. It brings equality of income and wealth.
(3) The private sector may not continue their production or business unless the public sector or the government encourages it. The government here steps in by producing and supplying electricity at rates which private industries especially small-scale and cottage industries can afford. For this, the government has to provide subsidy also.
 (4) It promotes balanced regional development.
 (5) It controls private monopolies and ensures easier availability of goods at cheap rates.
3. Explain any three points of importance of the public sector in our society.
 Ans. The following are the importance of the public sector in our society :
(1) The public sector provides various things needed by society as a whole in which the private sector will not provide at a reasonable price. For example, construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc.
(2) The purpose of the public sector is not just to earn profits but to social service also. The government of India buys wheat and rice from farmers at ‘fair price’. This it stores in its godowns and sells at a lower price to consumers through ration shops. The government has to bear some of the cost. In this way, the government supports both farmers and consumers.
(3) There are a large number of activities which are the primary responsibility of the government. For example, providing health and education facilities for all. It is the duty of the government to take care of the poorest and most ignored regions of the country through increased spending in such areas.
 (4) It creates employment opportunities through the creation and expansion of infrastructure.
(5) It controls private monopolies. It ensures easier availability of goods at cheaper rates.
4. Differentiate between the public sector and the private sector. Why do governments support public sector? Give any three reasons.
Or
 Differentiate between the public and private sectors in an economy with examples.
  Ans. (1) (i) In the public sector, the government owns most of the assets and provides all of me. services. e.g., SAIL, ONGC, etc. While in the private sector, ownership of assets and delivery of services are in the hands of private individuals or companies. For example, Reliance Industries Ltd.
(ii)The purpose of the public sector is not just to earn profits while activities in the Private sector are guided by the motive to earn profits only.
(2) (i) There are several things needed by society as a whole but which the private Sector would not provide at a reasonable cost.
 (ii) Some of these need spending large sums of money, which is beyond the capacity of the Private sector. For example, the construction of roads, railways, etc.
 (iii) There are a large number of activities which are the primary responsibility of the government. The government must spend on these.
5. Describe the role of the government in public sector activities.
Ans. (1) There are several things needed by society as a whole but which the private sector will not provide at a reasonable cost.
 (2)Some of these need spending large sums of money, which is beyond the capacity of the private sector. For example, the construction of roads, railways, harbours, etc. Governments have to undertake such heavy spending and ensure that these facilities are available for everyone.
(3) The private sector may not continue production of some goods or services or some business unless the government encourages it. For example, selling electricity at the cost of generation. The government has to bear part of the cost.
(4) The Government in India buys wheat and rice from farmers at a ‘fair price’ and sells them at lower than the market price through ration shops.
(5) There are a large number of activities which are the primary responsibility of the government. For example, health and education facilities. The government must spend on these.
6. Identify any five activities where the government must spend for the welfare of the people and why?                                                                          
Ans. The areas where the government must spend are as follows :
(1) The government should provide health and education facilities.
(2) It should provide proper food to tackle the problem of malnourishment.
 (3) The government also needs to pay attention to the aspects of human development.
 (4) Availability of safe drinking water and housing facilities should be provided by the government.
(5) The government should take care of ignored regions to bring balanced regional growth or development. Since the private sector is not paying full attention in these areas because its motive is not public welfare but to earn a profit, it becomes the duty of the government to spend in these areas.
VALUE BASED QUESTIONS
 1. Arun is employed in a local shop. Mention a few problems that he will have to face as a worker.
Ans. (1) Job insecurity                              (2) Low salary
 (3) No paid leaves and holidays            (4) No provision of overtime
(5) Long duty hours.
2. Rajneesh has made a list of different activities, professions and professionals. How will you help him to categories these under different sectors?
 (1) Farmer(2) Teacher(3) Milkman (4) Doctor (5) Painter(6) Clerk in a bank (7) Fisherman (8) Rickshaw-
puller(9) Making a bicycle
Ans. Primary Sector                        Secondary Sector                                Tertiary Sector
(1) Farmer                                             (9) Making a bicycle     
 (3) Milkman                                                                                                          (2) Teacher
 (7) Fisherman                                                                                                     (4) Doctor
                                                                                                                                (5) Painter
                                                                                                                                (6) Clerk in a bank
                                                                                                                                (8) Rickshaw-puller    

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