ncert solution economics Chapter 2 – Sectors of the Indian Economy

1.Fill in the blanks using the correct option given in the bracket Choose the most appropriate answer.1.

Fill in the blanks using the correct option given in the bracket not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.

2.SECTORS-OF-THE-INDIAN-ECONOMY.docx

2. Choose the most appropriate answer..

(a) The sectors are classified into public and private sector on the basis of:
(iii) ownership of enterprises

(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary

(c) GDP is the total value of _________ produced during a particular year.
(ii) all final goods and services

(d) In terms of GVA, the share of tertiary sector in 2017–18 is between _________ per cent.
(iii) 50 to 60

3. Match the following:

Problems faced by farming sectorSome possible measures
1. Unirrigated land(d) Construction of canals by the government
2. Low prices for crops(c) Procurement of food grains by government
3. Debt burden(e) Banks to provide credit with low interest
4. No job in the off season(a) Setting up agro-based mills
5. Compelled to sell to traders(b) Cooperative marketing societies

4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

  • Odd one: Potter (produces goods, rest provide services)

(ii) Teacher, doctor, vegetable vendor, lawyer

  • Odd one: Vegetable vendor (sells goods, rest provide services)

(iii) Postman, cobbler, soldier, police constable

  • Odd one: Cobbler (private sector, rest are public sector jobs)

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

  • Odd one: Jet Airways (private sector, rest are public sector)

5. Table completion – What is the percentage of workers in the unorganised sector in Surat?

Nature of employmentPlace of work/categoryPercentage
OrganisedOffices/factories registered15
Self-employed (formal licensed)Own shops/office/clinics15
Unorganised (informal, street etc)Street work, construction, workshops70

Percentage in unorganised sector: 70%.

6. Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.
Yes, it helps understand the structure of the economy, the role of each sector in development, employment patterns, income sources, and guides policy-making for economic growth.

7. For each of the sectors that we came across in this chapter why should one focus on employment and GVA? Could there be other issues which should be examined? Discuss.
Focusing on employment shows sector’s ability to generate jobs; GVA reflects contribution to GDP. Other issues: job security, income quality, working conditions, environmental impact, and sustainability.

8. 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.
Examples: Farmer, teacher, doctor, shopkeeper, carpenter, auto-driver, clerk, police, factory worker, software engineer, street vendor, tailor, bank manager.
Classify by sector: Primary (farmer), Secondary (carpenter, factory worker), Tertiary (teacher, doctor, shopkeeper, police, software engineer, bank manager).

9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Tertiary does not produce goods but provides services: transport (bus driver), healthcare (doctor), trade (shopkeeper), banking, education, communication.

10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Disguised unemployment: More people are employed than necessary; removal of some workers doesn’t affect output.
Rural: Five people farming a small plot, but only three needed.
Urban: Street shop with five helpers but two are enough.

11. Distinguish between open unemployment and disguised unemployment.
Open: People willing to work but unable to find a job.
Disguised: More people employed than needed; some have zero marginal productivity but appear employed.

12. “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer.
Disagree. Tertiary sector’s share in GDP is large and growing; services (IT, banking, trade, tourism, education) are vital for economic growth and employment.

13. Service sector in India employs two different kinds of people. Who are these?
Highly skilled/professional (doctors, engineers, IT, teachers) and unskilled workers (rickshaw pullers, barbers, shop helpers).

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Yes. They often lack job security, receive irregular wages, have no health benefits, and face unsafe working conditions.

15. How are the activities in the economy classified on the basis of employment conditions?
Organised sector (formal jobs with security, government rules) and unorganised sector (no job security or benefits).

16. Compare the employment conditions prevailing in the organised and unorganised sectors.
Organised: Job security, regular salary, health benefits, government protection.
Unorganised: No security, irregular wages, no benefits, few rights.

17. Explain the objective of implementing the MG NREGA 2005.
To guarantee 100 days of wage employment per year to rural households, improve livelihoods, and create durable rural assets.

18. Using examples from your area compare and contrast the activities and functions of private and public sectors.
Public: Government hospitals (subsidised care), state electricity board (public utilities).
Private: Private clinics (paid care), private coaching centres (tuition), malls (retail).

19. Discuss and fill the following table giving one example each from your area.

Well managed org.Badly managed org.
Public sectorGovt bank, hospitalSome municipal offices
Private sectorReputed IT companySmall unregulated shop

20. Give a few examples of public sector activities and explain why the government has taken them up.
Railways, defence, postal service, water supply.
Government runs them to provide essential services affordably, ensure equity, and support national interests.

21. Explain how public sector contributes to the economic development of a nation.
Provides foundational infrastructure, creates jobs, supports industries, ensures accessible essential services, and promotes social welfare.

22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
They face irregular wages (no minimum wage), unsafe conditions (no safety gear at construction), and lack health benefits; laws, minimum wages, insurance, and inspections are needed.

23. A study in Ahmedabad found that out of 15,00,000 workers, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-98) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. \nWhat kind of ways should be thought of for generating more employment in the city?

No. of WorkersIncome Generated (Rs million)
Organised Sector4,00,00032,000
Unorganised Sector11,00,00028,000
Total15,00,00060,000

Ways to generate employment: Promote small industries, formalization of unorganised work, skill training, public works, microfinance support, more government schemes.

24. The following table gives the GVA in Rupees (Crores) by the three sectors:

YearPrimarySecondaryTertiary
200012,56,00010,12,00018,17,000
201317,87,00024,59,00046,30,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.

  • 2000 Total: 12,56,000 + 10,12,000 + 18,17,000 = 40,85,000
    Primary: (12,56,000 / 40,85,000) × 100 ≈ 30.7%
    Secondary: (10,12,000 / 40,85,000) × 100 ≈ 24.8%
    Tertiary: (18,17,000 / 40,85,000) × 100 ≈ 44.5%
  • 2013 Total: 17,87,000 + 24,59,000 + 46,30,000 = 88,76,000
    Primary: (17,87,000 / 88,76,000) × 100 ≈ 20.1%
    Secondary: (24,59,000 / 88,76,000) × 100 ≈ 27.7%
    Tertiary: (46,30,000 / 88,76,000) × 100 ≈ 52.2%

(ii) Show the data as a bar diagram.
(Draw three bars for each year for each sector using calculated percentages.)

(iii) What conclusions can we draw from the bar graph?
Tertiary sector’s share has increased substantially, primary sector’s share has decreased, and secondary sector’s share has grown moderately—sign of structural change in India’s economy.

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