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I. Fill in the Blanks:

1. _______ includes some essential services that may not directly help in the production of goods.

2. ______ is the value of final goods and services produced in each sector during a particular yaer provides the total production of the sector for that year.

3. The ____ is characterised by small and scattered units which are largely outside the control of the government.

4. THe tertiary sector is also called the _______ .

5. We produce a good by exploiting natural resources. It is an activity of the _________.

Answers:

1. Service sector, 2. GDP,  3. Unorganised sector, 4. Service sector,  5. Primary sector


II. Match the following:

ColumnI 
ColumnII
1. Service sector        
a. Agriculture
2. Primary sector
b. Industry
3. Secondary sector   
c. Teritiory
4. GDP
d. Right to work

5. National Rural Employment  

Guarantee Act

e. Value of final goods

and services


Answers:

1. c, 2. a, 3. b, 4. e, 5. d


III. True or False.

1. The sector that gradually became associated with the different kinds of industries that came up. It is called primary sector.

2. Service sector also includes some essential services that may not directly help in the production of goods.

3. In the urban areas, the unorganised sector mostly comprises of landless agricultural labourers, small and marginal farmers.

4. Railways or post office is an example of the public sector whereas companies like Tata Iron and Steel Company Limited (TISCO) or

    Reliance Industries Limited (RIL) are privately owned.

Answers:

1. False, 2. True, 3. False, 4. True


IV. Answer the following questions:

1. What are final goods?

           Final goods are those goods which are used either for the final consumption or for capital formation.  They are  goods that  have crossed the boundary line of production and are ready for the use by the final users. Cloth, air conditioners and refrigerators are examples of final goods.

2. What are basic services?

          In any country, several services such as housing,social welfare, electricity and energy,water,hospital,  post and telegraph services, police stations, courts, village administrative offices, municipal corporation, defence, transport banks, insurance companies etc  are required. These are considered as the basic services.

3. Distinguish between the organized and unorganized sector.

         Organized sector cover those enterprises or places of work where the terms of employment are regular and people have assured work. This sector is registered by the government and the terms of employment are regular. Workers in this sector enjoy security of employment and are governed by various laws such as the factories act, the minimum wages act etc. But unorganized sector is characterized by small and scattered units which are largely outside the control of government. The employment is not secure in the unorganized sector. People can be asked to leave without any reason.The sector is not registered by the government and the terms of employment are not regular. The sector is not governed by any act.

4. Distinguish between public sector and private sector.

     Public sector

  • It is controlled and managed by the government.
  • The main aim of the sector is public welfare.
  • The sector provides basic facilities like education health, food and security to the people.
  •  For example the Indian Railways, post office and the BSNL.

   Private sector.

  • It is controlled and managed by an individual or a group.
  • The main aim of the sector is to earn maximum profits.
  • The sector provides consumer goods to the people.
  • For example: Reliance, Tisco etc.

5. What are the objectives of MNREGA 2005?

                         Or

Why do you think MNREGA 2005 is referred to as Right to work?

         Mahathma Gandhi National Rural Employment Guarantee Act, (MNREGA) was notified on September 7, 2005.The objective of the Act is to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.  It is referred to as 'Right to work' because it guarantees 100 days of employment in a year by the government to all those who are able to work. Under this scheme, the gram Panchayat after proper verification will register households  and issue job cards. And in case of failure unemployment allowance will be given to them.

6. What are the advantages of working in an organized sector?

          Workers in the organized sector enjoy security of employment.They work only a fixed number of hours. If they work more, they have to be paid overtime by the employer. They also get several other benefits from the employers like paid leave, payment during holidays, provident fund, gratuity etc.They also get medical benefits and under the laws the factory manager has to ensure facilities like drinking water and a safe working environment.

7. What are the disadvantages of working in an Unorganized sector?

                                  Or

 Why is it necessary to give protection and support to the unorganized sector workers. Explain.

           The unorganized sector is characterized by small and scattered units which are largely outside the control of the government. Workers working in an  unorganized sector get low wages. There is no provision of over time, paid leave, holidays, leave due to sickness etc. Employment is subject to high degree of insecurity.

8. What is meant by enterprise? Classify enterprises on the basis of ownership.

           When a person or  a group of persons are engaged in the production or distribution of goods or services which are meant mainly for the purpose of sale, it is called an enterprise. Enterprise can be mainly classified into private and public sector enterprises.The company which are  owned usually by either one individual or by a small group of individuals are called private enterprise and those companies which are owned by government are called as public enterprise.

9. What are the measures to reduce unemployment?

The government has undertaken many special programmes to generate employment opportunities. The major ones among them are:

  • Rural works programme:This aims at construction of civil works of permanent nature in rural areas. 
  • Integrated dry land agricultural development:  Under this scheme, permanent works like soil conservation ,development of land water harnessing are undertaken.
  • Natural Rural Employment Programme: This programme aims at creating community assets for strengthening rural infrastructure like drinking water wells, community irrigation wells, village tanks rural roads and schools.
  • Rural landless employment guarantee programme: It aims at generating employment, creating product and assets in rural areas and improving the overall quality of rural life.

10. What are the causes of unemployment?

       The major causes which have been responsible for the widespread unemployment can be spelt out as under:

 Rapid Population Growth : It is the leading cause of unemployment in Rural India. In India, particularly in rural areas, the population is increasing rapidly and the rate of job expansion could never have been as high as population growth would have required.

Slow growth of industrialization : Slow growth of industrialization in the country is yet another cause of unemployment in  the urban areas.

Defective system of education: The day-to-day education is very defective and is confirmed within the class room only. Its main aim is to acquire certificated only. The present educational system is not job oriented, it is degree oriented. There is lack of training facilities and professional guidance in our education system.

Inadequate Employment Planning : The employment planning of the government is not adequate in comparison to population growth. As a consequence, a great difference is visible between the job opportunities and population growth.

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

         The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this helps in ascertaining as to which sector of economic activity contributes more or less to the country's GDP and per capita income.

If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development.

12.What is the differences in the employment conditions between organized and un-organized sectors of the
economy?

           Organized sector                                                            Un-organized sector

1 Registration with the government.                                                             1. No such registration with the Government

2.The labourers are expected to work for a fixed hours.                             2.There is no fixed working hour.

3.The wages are fixed and extra payment for extra work                           3.  The labours get daily wages.

4.There is a job security.                                                                                 4. There is no job security.

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

    
Only final goods and services are included while calculating National Income because:


(a)Final goods are those goods which have crossed the boundary line of production and are ready for final consumption and investment.

(b)The value of final goods already includes the value of all the intermediate goods that are used in making the final goods. This would lead to the problem of double counting if all the goods of the economy will be included while calculating national income.

(c)This should be avoided because if the value of any commodity is counted more than once it will result in overestimation of national income.

14.What is the meaning of under employment? In which economic sector is under employment conditions more prevalent? &Why?

          A condition in which each individual appears working but no one is fully employed. This is the situation of under employment. People under such type of employment cannot utilize their potential and capacity in full. It is in primary sector because-
(i) This sector comprises the poorest section of society in majority
(ii) People engaged in this sector are illiterate or semi-literate.

 

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

   The workers in the unorganised sector need protection on the following issues: wages, safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they have no job security. Here, wages too differ from time to time. Consequently, the government has set up a minimum wages act to protect such workers from economic exploitation.

The same problem exists for miners working in private mining companies. Their safety is secondary to the company’s profits, and as a result, many miners suffer grievous injuries (and many a times, even die) due to inadequate safety gear and norms. Governments of most nations have now laid down strict rules for private enterprises to ensure workers’ safety.

Most companies in the unorganised sector do not provide health insurance to their employees. Some of these might be involved in dangerous factory production that may harm a worker’s health in the long term. These workers need to be protected against the tyranny of the employer, and it is here that the government steps in.

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

        The public sector contributes to the economic development of a nation by not mere financial profits.The main feature of public sector is it crate a lot of employment oppurtunity. The public sector plays a vital role in contributing to the Human Development Index via its functioning in health and education services.Most of the time public sector ensure equality of incme and wealth. Also, by buying food grains at a “fair price” from farmers, providing electricity, water, postal services at low rates, the government ensures that the people have a good living. It utilises taxes and grants to pay for the same. Thus, it plays a vital role in adding to the economic development of a nation, based on its human development situation.

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

         Most of the time workers are exploited in the unorganised sector. I agree with this view.Unorganised sector does not offer any job security. Neither does it allow for scope of trade or workers’ unions. Workers can be easily exploited in this scenario. They cannot afford to rebel against an employer’s tyranny as the latter can fire them at any time.

18.Distinguish between open unemployment and disguised unemployment.

       Open unemployment is when a person has no job in hand and does not earn anything at all. Disguised unemployment, on the other hand, is mostly found in the unorganised sector where either work is not consistently available or too many people are employed for some work that does not require so many hands. This is the essential difference between open unemployment and disguised unemployment.

 

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