10 – Eco-Q&A Sectors of the Indian Economy

Class 10 Social Science – Economics Sectors of the Indian Economy Important Question and answer

2016

Very Short Answer Type Questions [1 Mark]

Question 1.

Who has the ownership of the assets in the public sector?

Answer:

The government of a country has the ownership of the assets in the public sector.

Question 2.

What does GDP stand for?

Answer:

GDP stands for Gross Domestic Product. It is the value of all the final goods and services that are produced in a country within a particular year.

Short Answer Type Question [3 Marks]

Question 3.

Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the National GDP?

Answer:

The agricultural sector (Primary) is the largest employer in India. Nearly 51% of the population is engaged in this section in one way or the other. However, its share in the national GDP is very less because of the following reasons.

The average size of the land holdings is very low which results in low productivity per holder.

Less use of modern technology and knowhow among the farmers to increase crop productivity.

The systems of providing financing and marketing facilities have been insufficient since independence. The farmers are not able to get benefits fr6m the loan facilities and access to large markets.

Absence of alternate income generating activities in rural areas give rise to disguised unemployment where efficient labour force is not used to its optimum.

Long Answer Type Question [5 Marks]

Question 4.

How far is it correct to say that several services which cannot be provided by private sector can be provided by the public sector? Explain.

Answer:

A few examples of public sector activities are Indian Railways, water, electricity board and modes of transport.

There are several necessities of common man, but it is not possible for the private sector to provide all these things at reasonable cost. For example, water and electricity are the basic needs of everyone. If the work of providing these is given to private sector then the latter can exploit this opportunity by selling the same at high rates. Therefore the supply of basic amenities is given to the government so that it provides these facilities to the people at low and affordable rates, ensuring the smooth and uninterrupted supply to the public.

2015

Short Answer Type Questions [3 Marks]

Question 5.

What constitutes the unorganized sector in urban areas? Why do workers in this area need protection?

Answer:

In the urban areas, unorganised sector comprises mainly small-scale industry, casual workers in construction, trade and transport, street vendors, head-load workers, garment makers, ragpickers, etc. All these workers constitute unorganized sector in urban areas.

A majority of workers in the unorganized sector are from scheduled castes scheduled tribes and backward communities. Workers in unorganised sector urban areas need protection because, besides getting the irregular and low- paid work, these workers also face social discrimination. They are looked down upon by the people in urban areas. Protection and support to the unorganised sector workers is thus necessary for both economic and social development.

Question 6.

How does service sector help in the development of primary and secondary sectors? Explain with examples.

Answer:

After primary and secondary sectors, there is a third sector called the service sector also known as tertiary sector. Activities that fall under the service sector help in the development of the primary and secondary sectors by not directly producing a good but helping these sectors by activities that are an aid or a support for the production process.

For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these goods in godowns. We may also need to talk to others over telephone or send letters (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communication, banking and trade are some examples of service or tertiary sector.

Since these activities generate services rather than goods, they promote primary and secondary sectors by providing expertise, fiance, transportation, advertisement, etc.

Question 7.

With the example of sugar cane, explain the interdependence of all the three sectors of economy.

Answer:

Primary Sector: cultivation of sugar cane

Secondary Sector: processing of sugar cane to make sugar Tertiary sector:

Transportation of sugar cane into factories for processing it into sugar

Transportation of sugar packs to various markets

Sale of sugar by wholesalers and retailers.

So, the process starts when the sugar is cultivated. Since cultivation is part of agriculture, it comes in the primary sector. After the cultivation, the sugar cane is processed to make sugar in the factories, which is an industrial process and thus comes in the secondary sector . After which, the sugar is transported to various markets, where it is sold by retaiters and wholesalers which is part of tertiary sector .

In this way , all the three sectors are interdepentdent.

Question 8.

Why does only final goods and services are included while calculating National Income?

Answer:

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 readyfor final consumption and investment.

(b) The value of final goods already includes the value of all the intermediate goods that are used inmaking the final goods. This would lead to the problem of double counting if all the goods of theeconomy 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 willresult in overestimation of national income.

Question 9.

What is the meaning of under employment? In which economic sector is under employmentconditions more prevalent? Why?

Answer:

A condition in which each individual appears working but no one is fully employed. This is thesituation 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.

.Question 10.

What is meant by secondary sector? Explain it by giving examples.

Answer:

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.

Question 11.

What do you understand by the term under employment?

Answer:

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.

Question 12.

What is the criterion to classify an economic activity as secondary sector activity? Explain.

Answer:

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.

Question 13.

What is the criterion to classify an economic activity as tertiary sector activity? Explain..

Answer:

u1. The tertiary activities help in the development of the primary and secondary sectors.

2. These activities do not produce anything but they provide an aid or support for the process of production.

3. Transport and communication are the examples of tertiary sectors.

Question 14.

Describe the role of the state in providing basic services in developing countries.

Ans. 1. There are a large number of activities which are the primary responsibilities of the government.

2. They include providing health, education facilities, like, quality education particularly elementary education.

3. Government also pays attention to various aspects of human development such as safe drinking water, housing facilities, food and nutrition for the poor people.

4. Government also provides basic services like hospital facilities, transport and communication services at affordable prices