Intext Questions

Q.1     Explain the difference between primary, secondary and tertiary sectors using examples other than those mentioned in the text.
Sol.

Primary Sector	Secondary Sector	Tertiary Sector
It is involved with agriculature and direct use of natural resource	It is involved with large scale Processing of natural resources; aimed at value addition.	It is involved with supporting the activities of primary and secondary sectors
Examples : Farming, apiculture, cattle farming, etc.	Examples : lorn and steel industry, sugar mills shoe factory, etc.	Examples: Baking,transportation, BPO, consultancy, etc.

 

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Q.2     Classify the following list of occupations under primary, secondary and tertiary sectors:
Tailor, Basket weaver, Flower cultivator, Milk vendor, Fishermen, Priest, Courier, Workers in match factory, Money lender, Gardener, Potter, Bee-keeper, Astronaut, Call centre employee
Sol.       Primary Sector: Basket weaver, Flower cultivator, Milk vendor, Fishermen, Money lender, Gardener, Potter, Bee-keeper Secondary Sector: Workers in match factory Tertiary Sector: Tailor, Priest, Courier, Money lender, Astronaut, Call centre employee.

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Page 23

Q.1    What does the history of developed countries indicate about the shifts that have taken place between sectors?’
Sol.      During early civilization all economic activity was in primary sector. When the food production became surplus people’s need for other products increased. This led to the development of secondary sector. The growth of secondary sector spread its influence during industrial revolution in nineteenth century. After growth of economic activity a support system was the need to facilitate the industrial activity. Certain sectors like transport and finance play an important role in supporting the industrial activity and comprised the tertiary sector.

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Q.2     Correct and arrange the important aspects for calculating GDP from this Jumble.
To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years. Since we shouldn’t leave out anything we add up all these goods and services.
Sol.     Since we shouldn’t leave out anything we add up all these goods and services. To count goods and services we add the numbers that are produced. We count all those that were produced in the last five years.

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Page 24
Q.1     Which was the largest producing sector in 1970 – 71?
Sol.       Primary sector

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Q.2     Which is the largest producing sector in 2010 – 11?
Sol.       Tertiary sector

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Q.3     Can you say which sector has grown the most over thirty years?
Sol.       Tertiary sector

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Q.4     What was the GDP of India in 2011?
Sol.       About 200,000 crore (in Rs)

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Page 27

Q.2     Underemployment occurs when people
           (a) Do not want to work
           (b) Are working in a lazy manner
           (c) Are working less than what they are capable of doing
           (d) Are not paid for their work
Sol.       (c) Are working less than what they are capable of doing

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Q.3     Compare and contrast the changes in India with the pattern that was observed for developed countries. What kind of changes between sectors were desired but did not happen in India?
Sol.       In case of developed countries, the evolution of the economy happened on the most logical pattern. Growth in the primary sector was followed by a growth in the secondary sector. After that, the growth of the tertiary sector followed. The employment generation also kept pace with related changes in different sectors. The case of India is somewhat different. The growth of the primary sector was not followed by the growth of the secondary sector, rather it was the tertiary sector which took the lead. But employment generation in either the secondary or tertiary sector could not keep pace. Still a larger number of people depend on the primary sector for employment; compared to the other two sectors. This shows a disturbing trend because the primary sector is beset with the problem of hidden unemployment.

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Q.4     Why should we be worried about underemployment?
Sol.       Underemployment is a dangerous trend for any society. A person is not underemployed because of choice but because of compulsion. Underemployment not only fails to realize the economic potential of the workforce but also of the whole society. It pulls down the economic performance of other workers. Finally, the society and the nation has to pay a heavy price for underemployment.

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Page 29

Q.1    Why do you think NREGA 2005 is referred to as ‘ Right to work’ ?
Sol.      NREGA 2005 guarantees at least 100 days work for one member of each family. By doing so, this programme fulfills one of the fundamental rights as per the Constitution. Hence, this programme is aptly called as ‘Right to work’.

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Q.2    Imagine that you are the village head. In that capacity suggest some activities that you think should be taken up under this Act that would also increase the income of people? Discuss.
Sol.      Some of the activities which can be taken under this Act are; construction of road, construction of embankment on river, digging of ponds and wells, etc. These activities would provide double benefit. They will provide the much needed employment to the people and would help in development of village as well.

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Q.3    How would income and employment increase if farmers were provided with irrigation and marketing facilities?
Sol.      Irrigation facilities will help in increasing the farm output. Marketing facilities will help the farmers in selling their produce at fair prices. Thus, the income of farmers will increase. Improvement of irrigation facilities will be possible by construction of canals or digging of wells. New employment will be generated because of this. There will be increased demand for farm equipments and many people can earn by repairing those equipments. A market will help in opening up of new shops which would further boost employment.

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Q.4    In what ways can employment be increased in urban areas?
Sol.     Development of small scale and large scale industries can help in increasing employment in urban areas. Development of these industries will also result in development of the tertiary sector; which would further boost the employment generation. To support all these activities, there is also the need to develop the infrastructure; like power, telecommunication and roads.

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Page 31

Q.1    Look at the following examples. Which of these are unorganised sector activities?
(a) A teacher taking classes in a school
(b) A headload worker carrying a bag of cement on his back in a market
(c) A farmer irrigating her field
(d) A doctor in a hospital treating a patient
(e) A daily wage labourer working under a contractor
(f) A factory worker going to work in a big factory
          (g) A handloom weaver working in her house
Sol.      (b), (e) and (g)

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Q.2    Talk to someone who has a regular job in the organised sector and another who works in the unorganized sector. Compare and contrast their working conditions in all aspects.
Sol.

Worker in organized sector	Worker in unorganized sector
Gets good salary which is in tune with the government rules and with the market rates	Gets poor salary which is less than what the government prescribes.
Works for 8 hours in a day and for six days in a week	Works for 10 to 12 hours in a day and sometimes even needs to work on Sundays and holidays.
Gets holidays and leaves.	Gets fewer holiday and leaves.
Employer contributes towards provident fund.	Employer does not contribute towards provident fund.
Gets salary hike on a regular basis.	Gets salary hike once in a blue moon

 

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Q.3     How would you distinguish between organised and unorganised sectors? Explain in your own words.
Sol.

Organized Sector	Unorganized Sector
This sector carries all its activity through a system and as per the law of the land.	Systems are not in place and most the labour laws are violated.
Wages are as per government norms.	Wages are below what is prescribed by the government.
Employees get all the social security as per the law.	No social security net is in place.
Job is secure	Job security is absent

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Q.4     The table below shows the estimated number of workers in India in the organised and unorganized sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.

Sector	Organized	Unorganized	Total
Primary	2	240	242
Secondary	9	54	63
Tertiary	17	76	93
Total	28	370	398
Total in percentage	7.03	92.96	100%

(i) What is the percentage of people in the unorganised sector in agriculture?
        (ii) Do you agree that agriculture is an unorganised sector activity? Why?
        (iii) If we look at the country as a whole, we find that ———% of the workers in India are in the unorganised sector. Organised sector employment is available to only about ———% of the workers in India.
Sol.     (i)64.86%
           (ii) In case of agriculture, there is a blurred line between employers and employees. Let us assume that a farmer or a labour who works on other’s field is an employee. The worker; in this case; does not have the facility of fixed working hours. He may or may not be getting adequate wages. There is not social security net present. Hence, agriculture can be kept under unorganized sector.
           (iii) 7% , 93%

Exercise

Q.1     Fill in the blanks using the correct option given in the bracket:
(a) Employment in the service sector _________ increased to the same extent as production. (has / has not)
(b) Workers in the _________ sector do not produce goods. (tertiary / agricultural)
(c) Most of the workers in the _________ sector enjoy job security. (organised / unorganised
           (d) A _________ proportion of labourers in India are working in the unorganized sector. (large / small)
(e) Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]
(f) The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]  
Sol.     (a) has not
           (b) tertiary
           (c) Organised
(d) large
(e) natural, manufactured
(f) interdependent

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Q.2     The sectors are classified into public and private sector on the basis of:
           (a) Employment conditions
           (b) The nature of economic activity
           (c) Ownership of enterprises
           (d) Number of workers employed in the enterprise
Sol.     (c) Ownership of enterprises

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Q.3     Production of a commodity, mostly through the natural process, is an activity in _________ sector.
           (a) Primary
           (b) Secondary
           (c)Tertiary
           (d) Information technology
Sol.     (b) Secondary

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Q.4     GDP is the total value of _________ produced during a particular year.
           (a) All goods and services
           (b) All final goods and services
           (c)  All intermediate goods and services
           (d) All intermediate and final goods and services
Sol.     (b) All final goods and services

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Q.5     In terms of GDP the share of tertiary sector in 2003 is _________
           (a) Between 20 to 30 per cent
           (b) Between 30 to 40 per cent
           (c) Between 50 to 60 per cent
           (d) 70 per cent
Sol.     (c) Between 50 to 60 percent

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Q.6     Match the following:
Problems faced by farming sector Some possible measures

Problems faced by farming sector	Some possible measures
(1) Unirrigated land	(a) Setting up agro-based mills
(2) Low price 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

 Sol.    1-(d), 2-(c), 3-(a), 4-(b)

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Q.7     Find the odd one out and say why.
           (a) Tourist guide, dhobi, tailor, potter
           (b)Teacher, doctor, vegetable vendor, lawyer
           (c) Postman, cobbler, soldier, police constable
           (d) MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio
Sol.     (a) Tourist guide is working in tertiary sector, while others are in primary sector
           (b) Vegetable vendor is working in primary sector, while others are in tertiary sector
           (c) Cobbler is working in secondary sector, while others are in tertiary sector
           (d) SAHARA Airlines is in private sector, while others are in public sector

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Q.8     A research scholar looked at the working people in the city of Surat and found the following. Complete the table. What is the percentage of workers in the unorganized sector in this city?

Place of work	Nature of employment	Percentage of working People
In offices and factories registered with the government	Organized	15
Own shops, office, clinics in marketplaces with formal license	Organized	15
People working on the street, construction workers, domestic workers	Unorganized	20
Working in small workshops usually not registered with the government	Unorganized	50

Sol.        70%

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Q.9     Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Sol.     The classification of economic activities into primary, secondary and tertiary sector is useful from many perspectives. It helps the economists to understand the problems and opportunities in an economy in a better way. The government can utilize the information to bring various welfare programmes and supportive measures to grow the economy so that there could be better employment generation.

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Q.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.
Sol.       GDP gives an overall picture of the economy and contribution by various sectors. It gives a ready- reference for policymakers. Hence, GDP has its importance in analysis of economic performance. All the economic activities are done with the sole purpose of earning livelihood and hence data regarding employment generation are important. Apart from these information, we also need to look at the growth pattern in various sectors; on different parameters.

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Q.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.
Sol.       Some of the examples are as follows:

Primary sector	Secondary	Tertiary sector
A farmer working in his field, a dairy owner selling milk and dairy products, a fisherman selling fish	An engineer working in a factory, a foreman working in a factory	A chartered accountant,a transporter, a banker, a teacher etc.

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

Tertiary sector	Other sectors
Does not produce tangible goods	Produces tangible goods
Machines are not required	Machines are required
Relies more on intellectual capability of workers	Relies more on physical labour or workers
Many services can be provided through telecommunication to large geographical	The finished products need to be physically supplied to the end user.
Example: work of a designer, chartered accountant	Example: work of a mechanic, mason, etc.

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Q.13     What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Sol.       When a person appears to be working but his potential is not being fully utilised; he is facing disguised unemployment. The worker; in this case; is working in a particular occupation because he does not have anything better to do. Compulsion; rather than choice is the main deciding factor in this case. In case of rural areas, many people may be working on a small plot of land when the work could have been done by a few people. The additional people are working because they do not have anything better to do. This is the classic case of hidden unemployment. In urban areas; a shop may be shared by many brothers and all of them may be working in the same shop. They could have diversified into more gainful employment but sticking to their shop because they may not be getting opportunities.

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Q.14     Distinguish between open unemployment and disguised unemployment.
Sol.       When a person is without work, this is called unemployment. When a person is doing a job but is unable to fulfill his potential because he is not getting something better to do, this is called disguised unemployment. The person may be sticking to the occupation because of various reasons; like lack of employment opportunities, lack of resources, etc.

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Q.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.
Sol.       This statement is partially true. When we look at the growth of tertiary sector from 1973 to 2003, then it can be said that this sector has shown good growth. Moreover, the tertiary sector is the largest contributor to the GDP in 2003; which is another positive for this sector. But when the percentage of employment is analysed, tertiary sector has failed to generate employment which could match with its contribution in the GDP. Hence, it can be said that the tertiary sector has not grown in terms of employment generation.