1. What are economic activities?

Answer: Economic activities are those activities which performd to earn income.

2. Distinguish between primary,secondary and tertiary sectors.

Answer: 

3.What is meant by Gross Domestic Product (GDP)?  How it is calculated?

Ans. 

 i). GDP refers to the market value of all the final goods and services produced within a country during a particular year.

 ii). The value of the final goods is only used to calculate GDP.

iii).  The sum of the production in the three sectors gives us the GDP(Primary + Secondary + Tertiary).

iv). The money value of goods and services should be added rather than adding up the actual numbers.

4. Distinguish between intermediat goods and final goods.

Ans.

Intermediate goods:-

1. These goods are used in production process as a raw material for the production of final goods.

2.  These goods are not included in the GDP to avoid the problem of double counting.

3.  For example: Wood is an intermediate good in the manufacturing of furniture.

 Final goods:-

1. These goods are used for final consumption and cannot be manufactured further.

2. These goods are included in GDP.

3. For example: Furniture, Biscuits etc.

Q5. Name the sector that is the largest employer in India.  Why does this sector produced only a quarter of the national GDP?

Ans. 

1.  Primary sector is the  largest employer in India.

2.  This is because: People in agriculture sector under employed.

3.  Workers in agriculture sector are not producing as much as they could.

4.  This sector has disguised unemployment.

5.  Agriculture still is largely subsistence in nature in India and not adequately diversified in order to generate more wealth.

Q6. What is meant by disguised unemployment?

Ans.

 Disguised unemployment is a situation in which more persons are employed on a job that are optimally required.  

If a part of the labour force is withdrawn, the total production remains unchanged.

Q7. Explain why service sector is gaining more importance in the global economy.

Ans. 

1.  In any country several basic services like transport, bank, insurance, educational institutes etc are required.

2. The government has to take responsibility for the provisions of these services.

3.  The development of agriculture and industry lead to the development of services such as transport, trade, storage etc.

4.  As income level rise certain section of people started demanding many services like eating out, tourism, private hospitals etc.

5.  New services such as those based on information and communication technology have become important and essential.

6.  Government policy of LPG has also lead to growth of this sector.

Q8. “All of the service sectors are not growing equally well in India.” justify the statement.

Ans.

1. Service sector in India employs many different kinds of people.

2.  At one end there are a limited number of services that employee highly skilled and educated workers such as Managers, CEO, lawyers, accountant etc.

3.  At the other hand there are very large number of workers engage in services such as small shopkeepers, repair person, transport persons etc.

4.  These people do not find any change in their life perform yet these services.

5.  The underemployment situation also exist in this sector.  Many of casual workers do not find work everyday.

 Thus, only a part of this sector is growing and importance.

Q9. What is under employment?  Explain the problem of under employment in the service sector in urban areas with example.

Ans. 

1. A situation in which a worker is employed but not in the desired capacity whether in terms of compensation, hours or level of skill and experience.

2.  In the urban areas,  there are thousand of casual workers in the service sector who search daily employment.

3.  For example:  painters, Street vendors, rickshaw pullers etc. who are under employed because they do not have better work opportunities.

Q10. How can we create more employment in secondary and tertiary sector in rural India?

Ans.

More employment opportunities in industry:-

1.  we can create more jobs in the secondary sector by promoting industries such as dal, rice mills.

2.  By promoting cottage and handicraft industries to employee the villagers.

3.  Export-import trade of industrial goods.

4.  Government should frame policies to promote business activities growth and development.

 More employment opportunities in tertiary sector:

1.  Service like transportation and communication must be promoted to generate employment.

2.  To provide education to all children we would needed lot of schools which can also generate employment.

3.  Loans and advances to finance and banking sector for non organised establishment.

4.  By promoting tourism, according to Niti Aayog if tourism as a sector is improved, every year we can give employment to more than 35 people.

Q11. Explain the ways by which more employment can be created in a country like India in agriculture.

Ans. 

 More employment opportunities in agriculture:-

1.  By providing irrigation facilities.

2.  Providing cheap credit facilities and crop insurance.

3.  By spending more money on transport and storage.

4.  By establishing agro based small scale units.

5.  Technical training, vocational guidance to unemployed youth for self employment.

6. By opening of cold storage.

7.  By opening of honey collection centres near forest areas.

Q12. Explain the objectives of MANREGA 2005.

Ans.

1.  MANREGA stands for Mahatma Gandhi National rural employment guarantee act-2005.

2.  It was implemented by the central government in 2005.

3.  It was passed for promoting rural employment.

4.  It is also called “Right to Work”.

 5. Under this sector,  all those who are living under poverty and are able and in need of work have been guaranteed 100 days of employment in a year.

6.  If the government fails in its duty to provide employment, it will provide unemployment allowance to the people.

7.  One third job are reserve for women.

Q13. Compare the service conditions of organised sector with an organised sector.

 or 

How are the activities in the economic classified on the basis of employment conditions?

Ans.

 Organised sector:-

1.  This sector works under certain rules and regulations formed by government.

2.  It checks strictly the exploitation of labour.

3.  Workers have job security in this sector.

4.  Workers get regular monthly salary.

5.  Workers get benefit like provident fund, paid leaves, medical benefits etc.

6.  Working hours are fixed here.

7.  The main motive is profit maximization and public welfare.

Unorganised sector

1. This sector does not work under any rules and regulations.

2.  It does not check rather in exploitation of labour.

3.  Workers do not have job security.

4.  People can be asked to leave without reason.

5.  Workers get daily wages.

6.  Workers do not get any such benefits.

7. Working hours are not fixed here.

8. The main motive is only profit maximization only.

Q14. Why there is the urgent need to protect they workers of unorganised sector?  Explain.

 or 

How can the workers in the unorganised sector be protected?  Explain.

Ans. 

 In unorganised sector workers are exploited by employers by paying low wages.  No safety is provided at workplace nor the health insurance benefit given to them.  These  workers can be protected by the following ways:

1.  Farmers need to be supported through adequate facility for timely delivery of seeds, agriculture inputs, storage and marketing outlets.

2. The interest of casual workers in urban area must be protected by law.

3.  Minimum wages act should be enforced strictly.

4.  By providing job security,  paid leaves,  provident fund, gratuity etc.

5.  By providing the medical facilities.

6.  By providing them proper working conditions.

Q15. Classify the sectors of economy on the basis of ownership.

 or 

Differentiate between public and private sector in an economy with examples.

Ans. 

 Public sector

1.  The government owns most of the assets and provides all the services.

2.  Public sector works for public welfare not just to earn profit.

3.  Government raise money through taxes and other ways to meet expenses on the services rendered by it.

4. Indian Railway, Steel authority of India limited, NTPC limited,  HMT limited etc.

 Private sector

1.  Ownership of assets and delivery of services in the heads of private individuals or companies.

2. Main motive of this sector is to earn maximum profit and to form wealth.

3.  TISCO, Reliance industries limited, Infosys limited etc.

Q16. Explain how public sectors contribute to economic development of a nation?

ANS. 

 Public sector forms the strong foundation of a nation.  it helps in promoting economic and social welfare of the country.  It helps the nation in following manners:

1. It promotes economy infrastructure like Railway,  road construction,  port construction etc.

2. It promotes social infrastructure like hospitals, educational institutions,  housing facilities etc.

3.  It creates employment opportunities in various economic sectors by establishing research institutions for promoting technology and research.

4.  It ensures easy availability of goods at moderate rates.

5.  By providing safe drinking water, housing facilities under Pradhan Mantri Awas Yojana for the poor.

6.  To make every citizen literate and healthy.

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