Very Short Answer Type Questions
Q1: How is Public sector different from Private sector? 
Ans: Public sector is controlled by the Government whereas private sector is under the control of an individual or a firm.
Q2: How does public sector help in the development of a country? [2020 C, 2015]
Ans: The public sector invests in key sectors such as health, education, and defense, which contribute to the overall development of a country.
Q3: "Harita attends her office from 9:30 am to 5:30 pm. She gets her salary regularly at the end of every month. In addition to the salary, she also gets Provident Fund and other facilities as per the rules laid down by the Government." Identify the employment sector in which Harita is working. [2020 C]
Ans: Harita is working in the organized sector.
Q4: Suggest any one measure for the development of any activity of 'Secondary Sector’. 
Ans: Development of the secondary sector can be achieved through:
- Adoption of new and advanced technology.
- Incentives provided by the government to promote the secondary sector.
Q5: Distinguish between 'primary' and 'secondary' sectors. [Delhi 2019]
Ans: When the economic activity depends mainly on exploitation of natural resource, then that activity comes under the primary sector. Agriculture and its related activities are the primary sectors of the economy, so farming is an example of primary sector activity. While the activities in which natural products are changed into other forms comes under secondary sector.
Q6: Why tertiary sector is also called the service sector? [2017, 2014]
Ans: Tertiary sector is the sector which provides services, such as banking, selling, transportation, etc. These services actually help in proper functioning of the primary and secondary sectors.
Q7: Mention any one feature of the organized sector. 
Ans: A worker in the organized sector is assured of regular work, regular salary, and other benefits.
Q8: What do you understand by underemployment? 
Ans: Underemployment refers to the condition in which people in the labor force are employed at less than full-time or regular jobs, or at jobs inadequate with respect to their training or economic needs.
Q9: When was Mahatma Gandhi National Rural Employment Guarantee Act implemented? 
Ans: The Mahatma Gandhi National Rural Employment Guarantee Act was implemented in the year 2005.
Q10: What is disguised unemployment? 
Ans: Disguised unemployment refers to a situation where labor that is employed in a job is not actually utilized for the production of goods and services.
Q11: State the meaning of under-employment. 
Ans: Underemployment happens when workers are working at less than their capabilities. The underemployment of workers is not reflected in official unemployment statistics because of the way they are compiled.
Q12: In which sector is Seasonal and Disguised Unemployment most prevalent in India? 
Ans: Seasonal and disguised unemployment are most prevalent in the agriculture sector (Primary sector).
Q13: What is another name for underemployment? 
Ans: Overstaffing or hidden unemployment.
Q14: Suggest any one way to solve the underemployment situation in rural areas in India. 
Ans: The government can spend money on the development of infrastructure projects, such as construction of roads, canals, etc. The government can provide easy credit to people and encourage entrepreneurship.
Q15: Mention any one factor responsible for the growth of the service sector in the Indian economy. 
Ans: As income levels rose, a certain section of the population started demanding many services like eating out, tourism, private hospitals, etc. The rise of information and communication technology can be largely attributed to improvement in telecommunication and power sectors.
Q16: Which sector has gained prominence over the last thirty years? 
Ans: The tertiary sector has gained prominence over the last thirty years.
Q17: TISCO and Reliance are owned by which sector? 
Ans: TISCO and Reliance are owned by the private sector.
Short Answer Type Questions
Q1: Compare the employment conditions prevailing in the organised and unorganised sector. 
Ans: The employment conditions prevailing in the organized and unorganized sectors differ significantly. Here's a comparison between the two:
- Organized Sector:
- Rules and Regulations: The organized sector operates within the framework of government regulations and labor laws. Employers are required to follow rules related to working hours, wages, social security benefits, and safety standards.
- Formal Processes: The organized sector follows formal processes and procedures in recruitment, employment contracts, and grievance redressal. There is a structured hierarchy, and employees have defined roles and responsibilities.
- Employment Security: Workers in the organized sector enjoy a higher degree of employment security. They are usually employed full-time and are entitled to benefits like provident fund, gratuity, medical benefits, paid leave, and retirement benefits.
- Fixed Working Hours: The organized sector has fixed working hours, and employees are compensated for overtime work. They are entitled to regular breaks and rest days.
- Unorganized Sector:
- Lack of Regulation: The unorganized sector operates outside the purview of government regulations and labor laws. There is a lack of formal contracts, and workers are often not aware of their rights and entitlements.
- Informal Nature: The unorganized sector consists of small and scattered units, often with informal employment arrangements. Workers may be engaged on a daily wage or piece-rate basis, with no job security or benefits.
- Low-paid and Irregular Jobs: Jobs in the unorganized sector are often low-paid and irregular. Workers may have to work long hours without overtime compensation. They may not receive any social security benefits or access to healthcare and other welfare schemes.
- Lack of Employment Security: Workers in the unorganized sector face a high degree of insecurity. They can be easily laid off or replaced without any legal protection or recourse.
Overall, the organized sector provides better employment conditions, security, and benefits compared to the unorganized sector, where workers often face exploitation and lack of social protection.
Q2: Explain how Tertiary Sector’ is different from other sectors. 
Ans: The tertiary sector is fundamentally different from the other sectors, namely the primary and secondary sectors.
Here's an explanation of how the tertiary sector differs:
- Nature of Activities: The activities of the tertiary sector primarily involve providing services rather than producing goods. It includes sectors such as transportation, communication, banking, healthcare, education, tourism, entertainment, and various other service-oriented industries.
- Supportive Role: The tertiary sector supports and aids the functioning of the primary and secondary sectors. Instead of directly producing goods, it provides services that facilitate production, distribution, and consumption. For example, transportation services help in the movement of raw materials and finished goods, while banking services provide financial support and credit to businesses.
- Indirect Production: Unlike the primary and secondary sectors, the tertiary sector does not produce goods by itself. Instead, it assists in the production process by providing essential services. For example, communication services enable businesses to coordinate and collaborate, while healthcare services ensure the well-being of the workforce.
- Dependency: The tertiary sector is highly interdependent with the primary and secondary sectors. The growth and development of the primary and secondary sectors create a demand for services provided by the tertiary sector. As agriculture and industry expand, the need for transportation, trade, banking, and other services increases.
- Value Addition: While the primary sector extracts raw materials and the secondary sector transforms them into finished goods, the tertiary sector adds value to these goods by providing services that enhance their availability, accessibility, and utility.
In summary, the tertiary sector differs from the other sectors in terms of its service-oriented nature, supportive role, indirect production, interdependency, and value addition to the overall economy.
Q3: How do the workers of the organized sector receive the benefits of employment security? Explain with examples. [2021C]
Why do people prefer to work in an organized sector? Explain. 
Ans: Workers in the organized sector enjoy the benefits of employment security due to several factors. Here's an explanation of how they receive these benefits with examples:
- Compliance with Labor Laws: The organized sector operates within the framework of labor laws and regulations set by the government. Employers are required to follow rules related to working hours, wages, social security benefits, and safety standards. This ensures that workers receive the benefits they are entitled to. Example: In countries like India, the Factories Act, Shops and Establishments Act, and other labor laws provide legal protection to workers in the organized sector. These laws specify minimum wages, working hours, leave provisions, and safety measures that employers must adhere to.
- Formal Employment Contracts: Workers in the organized sector usually have formal employment contracts that outline their rights, responsibilities, and terms of employment. These contracts provide clarity and protection to both the employee and the employer. Example: A worker who is employed by a registered manufacturing company would have a written employment contract stating their job role, salary, working hours, and other terms of employment. This contract serves as evidence of their employment and ensures that their rights are protected.
- Social Security Benefits: The organized sector often provides social security benefits to its workers, including provisions for provident fund, gratuity, medical benefits, and retirement benefits. These benefits provide financial security and support to workers and their families. Example: A worker employed in a government organization may contribute a portion of their salary towards a provident fund, which is a retirement savings scheme. Upon retirement, they would receive a lump sum amount, ensuring financial stability in their old age.
People prefer to work in the organized sector because it offers stability, legal protection, and various benefits that contribute to their overall well-being and security. The organized sector provides a structured work environment, fixed working hours, opportunities for career growth, and access to social security schemes, which are attractive to workers seeking stability and long-term employment.
Q4: Why is the 'tertiary sector' becoming important in India? Explain any three reasons. [2020, Delhi 2019]
Ans: The tertiary sector, also known as the service sector, is becoming increasingly important in India due to the following reasons:
- Rising Demand for Services: As India's economy grows and incomes rise, there is a growing demand for various services. Basic services such as healthcare, education, transportation, communication, banking, and insurance are required by a large population. This increased demand for services has led to the expansion of the tertiary sector.
- Development of Agriculture and Industry: The growth and development of agriculture and industry in India have created a need for services that support these sectors. As agriculture becomes more commercialized and industrialization expands, services like transportation, trade, storage, financing, and marketing become crucial for the smooth functioning of these sectors. The tertiary sector has grown to meet these demands.
- Changing Lifestyle and Urbanization: Urbanization and changing lifestyles have also contributed to the growth of the tertiary sector. As people move to cities and adopt modern lifestyles, the demand for services such as entertainment, tourism, hospitality, retail, and healthcare increases. The tertiary sector caters to these evolving needs and preferences of the urban population.
Overall, the growth of the tertiary sector in India can be attributed to the rising demand for services, the development of agriculture and industry, and the changing lifestyle patterns of the population.
Q5: "All the services of the "service sector” are not growing equally well.” Evaluate the statement. 
Ans: The statement that all the services of the service sector are not growing equally well is valid. Here's an evaluation of the statement:
- Unequal Growth Rates: Different services within the service sector experience varying growth rates. While some services may be booming and witnessing rapid expansion, others may be growing at a slower pace or facing challenges. Example: Services like information technology, telecommunications, and e-commerce have experienced significant growth in recent years. On the other hand, certain traditional services like postal services or certain segments of the hospitality industry may be facing stagnation or decline.
- Market Demand and Trends: The growth of services depends on market demand and evolving trends. Services that are in high demand due to changing consumer preferences, technological advancements, or government initiatives tend to grow faster than others. Example: With the increasing use of smartphones and internet penetration, mobile app-based services like food delivery, ride-hailing, and online shopping have witnessed rapid growth. Conversely, services that are becoming obsolete or facing saturation may not experience the same level of growth.
- Sector-specific Challenges: Different services face unique challenges that can affect their growth. Factors such as regulatory constraints, competition, infrastructure limitations, and skill gaps can impact the growth prospects of specific services. Example: Financial services like banking and insurance face strict regulations and intense competition, making it challenging for new players to enter the market. Similarly, healthcare services may be constrained by limited infrastructure and skilled professionals, hindering their growth potential in certain areas.
In conclusion, it is evident that growth within the service sector is not uniform across all services. The varying growth rates can be attributed to factors like market demand, trends, and sector
Q6: Suggest any three ways to save workers of unorganized sector from exploitation. 
- Provide social security to workers.
- Offer support from the Labour Ministry.
- Facilitate the conversion of the unorganized sector to the organized sector.
Q7: Suggest any three ways to improve the condition of the public sector at grass root level. 
- Increase government investment at the grass root level.
- Establish more banks and cooperatives.
- Focus on infrastructural development at the grass root level, including health and education facilities.
Q8: "Tertiary sector activities help in the development of the primary and secondary sectors”. Evaluate the statement. 
Ans: Tertiary sector activities do play a significant role in the development of the primary and secondary sectors.
Here are a few reasons to support this statement:
- Expertise and Finance: The tertiary sector provides expertise and financial services to the primary and secondary sectors. For example, banks and financial institutions provide loans and credit facilities to farmers and industries, enabling them to invest in their respective sectors and promote growth.
- Advertisement and Marketing: The tertiary sector activities like advertising agencies and marketing firms help in promoting and showcasing the products and services of the primary and secondary sectors. This boosts sales and creates demand, leading to the overall development of these sectors.
- Transportation and Communication: The tertiary sector provides essential transportation and communication facilities that connect the primary and secondary sectors. Efficient transportation networks ensure the timely delivery of raw materials to industries and the distribution of finished goods to consumers. Communication services enable smooth coordination and collaboration between different sectors, enhancing productivity.
Therefore, it can be concluded that the tertiary sector activities contribute to the development of the primary and secondary sectors by providing expertise, finance, promoting products, and facilitating transportation and communication.
Q9: "Primary sector was the most important sector of economic activity at initial stages of development.” Evaluate the statement. 
Ans: The statement that the primary sector was the most important sector of economic activity at the initial stages of development holds true.
Here are a few reasons to support this statement:
- Extraction of Raw Materials: The primary sector, which includes activities like agriculture, mining, and fishing, focuses on the extraction of raw materials from nature. These raw materials are essential for the functioning of the secondary and tertiary sectors.
- Employment Generation: The primary sector provides employment to a large population, especially in countries with agrarian economies. In the initial stages of development, agriculture was the primary source of livelihood for the majority of the population. It played a crucial role in sustaining the economy and providing income to the people.
- Transition to Other Sectors: The primary sector acts as a stepping stone for the transition of workers to the secondary and tertiary sectors. As economies develop, people move away from agriculture and engage in manufacturing and services. The surplus labor from the primary sector fuels the growth of other sectors.
Although the importance of the primary sector has reduced over time with the growth of industrialization and services, it played a vital role in the early stages of economic development by providing essential resources, employment, and a foundation for further growth.
Q10: What historical changes have been brought about in the primary economy? 
Ans: The primary economy has undergone significant historical changes over the years. Some of these changes include:
- Technological Advancements: With the advent of new technologies, the primary economy has witnessed substantial changes in agricultural practices, mining techniques, and fishing methods. Mechanization and the use of modern tools and machinery have increased productivity and efficiency in these sectors.
- Green Revolution: The introduction of high-yielding crop varieties, modern irrigation techniques, and the use of fertilizers and pesticides led to the Green Revolution in agriculture. This revolutionized agricultural production and significantly increased food grain output.
- Diversification: The primary economy has witnessed diversification with the introduction of new crops, expansion of agricultural practices to new regions, and the development of non-traditional sectors like horticulture and floriculture. This diversification has helped in enhancing agricultural output and generating additional income.
- Environmental Concerns: Over time, there has been an increasing emphasis on sustainable practices in the primary economy. Conservation of natural resources, protection of biodiversity, and adoption of eco-friendly farming methods have gained importance to ensure the long-term viability of the primary sector.
These historical changes have transformed the primary economy, making it more productive, sustainable, and adaptable to changing needs and challenges.
Q11: How are the three sectors of the economy different from each other? Explain. 
Ans: The three sectors of the economy, namely the primary, secondary, and tertiary sectors, are distinct from each other based on the nature of their activities.
Here's an explanation of their differences:
- Primary Sector: The primary sector involves activities related to the extraction and utilization of natural resources. It includes industries like agriculture, forestry, mining, fishing, and animal husbandry. The primary sector is directly dependent on the environment and the availability of raw materials.
- Secondary Sector: The secondary sector comprises activities that involve the processing and manufacturing of raw materials obtained from the primary sector. Industries such as manufacturing, construction, and electricity generation fall under this sector. The secondary sector adds value to the raw materials and produces finished goods.
- Tertiary Sector: The tertiary sector is focused on providing services rather than producing goods. It includes activities such as transportation, communication, banking, healthcare, education, tourism, and entertainment. The tertiary sector supports and facilitates the functioning of the primary and secondary sectors.
The primary sector provides the necessary raw materials, the secondary sector processes and transforms them, and the tertiary sector offers services and support to both the primary and secondary sectors. These sectors are interdependent and collectively contribute to the overall economic development of a country.
Long Answer Type Questions
Q1: Read the source given below and attempt any 5 questions. [Term-1,2021-22]
Take the case of Laxmi with her two-hectare plot of unirrigated land. The government can spend some money or banks can provide a loan, to construct a well for her family to irrigate the land. Laxmi will then be able to irrigate her land and take a second crop, wheat, during the rabi season. Let us suppose that one hectare of wheat can provide employment to two people for 50 days (including sowing, watering, fertiliser application and harvesting). So two more members of the family can be employed in her own field. Now suppose a new dam is constructed and canals are dug to irrigate many such farms. This could lead to a lot of employment generation within the agriculture sector itself reducing the problem of underemployment.
(i) Which one of the following economic sectors is Laxmi related to?
(ii) Which one of the following categories of farmers is Laxmi related to?
(d) Agricultural labourer
(iii) In which one of the following sectors is underemployment seen at the maximum?
(iv) How does construction of dams and canals create employment in large numbers in rural areas?
(a) Large number of engineers are needed
(b) Large number of technicians are also required
(c) Adjustment of large number of unskilled labourers
(d) Executives and administrators can easily be adjusted
(v) Which one of the following is the main result of increasing irrigation facilities in the field of agriculture?
(a) Increase in production
(b) Increase in productivity
(c) Change in cropping pattern
(d) Promote high yielding of crops
(vi) Which one of the following means of irrigation generally comes under the Public Sector?
Q2: Suggest any three measures through which underemployment in the agriculture sector can be minimized. 
- Increasing access to irrigation facilities: By providing farmers with proper irrigation facilities, they can cultivate multiple crops in a year, leading to increased employment opportunities.
- Promoting agro-processing industries: Establishing agro-processing units can create additional employment opportunities in the agriculture sector, as these industries require workers for processing and packaging agricultural products.
- Encouraging skill development and training: Providing training and skill development programs for farmers can enhance their productivity and enable them to utilize their skills effectively, reducing underemployment in the agriculture sector.
Q3: Highlight any five features of 'Public Sector.' [Al 2019]
Ans: The features of the public sector can be enumerated as follows:
- Some projects need spending of large sums of money, which is beyond the capacity of the private sector.
- In certain cases of national security such as the defense forces, only the public sector can be trusted.
- The government ensures that these facilities are available for everyone by undertaking heavy spending.
- The government supports activities that are important for the development of the public, such as subsidizing goods for the poor.
- The public sector contributes to community development by providing health and educational services.
Q4: Explain why the service sector is gaining more importance in the global economy. [2019,2017]
Ans: The service sector is gaining more importance in the global economy due to the following reasons:
- The government has to take the responsibility for the provision of basic services such as hospitals, educational institutions, transport, banks, etc.
- The development of agriculture and industry leads to the development of services like trade and transport.
- Rising income levels lead to an increased demand for services like tourism, private hospitals, private schools, etc.
- New services based on information and communication technology have become essential in the modern world.
- Privatization policies have also led to the growth of the service sector.
- A large number of workers are engaged in services like small shopkeepers, repair persons, transport persons, etc.
Q5: How does the public sector contribute to the economic development of a nation? Explain. [2019,2014]
Ans: The public sector contributes to the economic development of a nation in the following ways:
- It promotes rapid economic development through the creation and expansion of infrastructure in underdeveloped areas.
- It creates employment opportunities through various projects.
- It generates financial resources for economic and social development.
- It ensures balanced regional development.
- It encourages the development of small, medium, and cottage industries as ancillaries.
- It ensures the easy availability of goods at moderate rates.
- It contributes to community development by providing health and educational services.
Q6: Compare the employment conditions of workers in the organised and unorganised sectors. [2017,2016]
Ans: In the organised sector:
- Rules and regulations (labour laws) as proposed by the government are followed.
- Formal processes and procedures are followed.
- Security of employment to workers, who are employed for full time is ensured.
- Working hours fixed, overtime is paid for extra hours of work.
- Workers get benefits like provident fund, gratuity, medical benefits, paid leave, etc.
In the unorganised sector:
- Outside the control of the government laws.
- Small and scattered units.
- Rules and regulations are not followed.
- Low-paid and irregular jobs.
- High degree of insecurity.
- No provision for overtime, paid leave, holidays, etc.
Q7: Describe any five provisions of ‘National Rural Employment Guarantee' Act 2005. 
Ans: Provisions of National Rural Employment Guarantee Act (NREGA), 2005 are:
- It provides 100 days assured employment every year to each rural household.
- One-third of the proposed jobs are reserved for women.
- If an applicant is not employed within 15 days he/she is entitled to a daily unemployment allowance.
- The government has to establish Central Employment Guarantee Funds and state employment guarantee funds for the implementation of the scheme.
- The scheme is to be extended to 600 districts.
Q8: Suggest any five measures to reduce unemployment. 
Ans: To reduce unemployment, the following measures can be taken:
- Planned development by accelerating industrialization and stimulating demand for goods and services.
- Creation of more employment opportunities in rural areas by processing farm produce, promoting cooperative farming, and developing allied activities and cottage industries.
- Planning projects to eliminate seasonal unemployment and providing micro-finance and community self-help in both rural and urban areas.
- Demonstrating and promoting adaptive technology through educational programs to encourage entrepreneurial spirit.
- Launching self-employment schemes in services or small manufacturing, connected to core activities in rural/urban areas, to enable unemployed youth to start their own business or small-scale firms.
Q9: Describe the estimates of the Planning Commission to create jobs in tourism and education. 
Ans: Regarding jobs in education:
- The Planning Commission estimates that nearly 20 lakh jobs can be created in the education sector alone.
- More teachers and infrastructure will be required to accommodate more children in schools.
Regarding jobs in tourism
- The Planning Commission estimates that nearly 35 lakh jobs can be created in the tourism sector.
- Regional crafts, cottage industry, and new services like IT also have the potential to generate jobs.