Chapterwise important Questions social class 10( Sectors of the Indian Economy)

Chapterwise important Questions social class 10( Sectors of the Indian Economy)

 


NCERT Hindi Book explanation in English and tamil 

NCERT solutions Hindi सूरदास


Multiple Choice Questions 

1. Choose the incorrect pair from the followings: [CBSE 2020]

List I List II
(a) Mailman Tertiary sector
(b) Fisherman Primary sector
(c) Carpenter Primary sector
(d) Banker Tertiary sector

Ans. (c) Carpenter - Primary Sector 

Explanation: Carpenter creates furniture out of wood and hence can be classified in the secondary sector. He produces goods by exploiting a natural resource. Both mailman and banking provide services classifying them as the tertiary sector employees. Fisherman exploits natural sea resources- the fishes and hence are workers of the primary sector.

 2. Which is not a characteristic of unorganised sector? 

(a) Small and scattered units which are largely outside the control of the government 

(b) Rules and regulations are not followed

(c) Jobs here are high-paid and often regular 

(d) No provision for overtime, paid leave, holidays, medical leaves. 

Ans. (c) Jobs here are high-paid and often regular. 

3. MGNREGA 2005 implements the ...................... in about 625 districts of India 

(a) Right to Property 

(b) Right to Education 

(c) Right to Work 

(d) Right to life 

Ans. (c) Right to Work 

Explanation: Under Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005), all those who are able to, and are in need of work in rural areas are guaranteed 100 days of employment in a year. The Act says if the government fails in its duty to provide employment, it will give unemployment allowances to the people. 

4. Which of the following profession belongs to the Tertiary Sector of economy?

 [CBSE Marking Scheme 2019]

(a) Fisherman 

(b) Farmer 

(c) Factory worker 

(d) Teacher 

Ans. (d) Teacher. 

5. In which sector, do workers enjoy job security? 

(a) Agriculture sector 

(b) Private-sector 

(c) Organised sector 

(d) Unorganised sector 

Ans. (c) Organised sector 

Explanation: Organised Sector includes industries, shops, factories and businesses registered with the government. They follow labour laws and other rules and regulations laid down by the government. They also provide job security, health care benefits and other incentives to its employees. 

Related Theory Agricultural Sector, Unorganised sector and Private Sector are all unregistered or not backed by the government and hence offer no job security or promise of a dignified life. 

6. Which among the following most appropriately describes underemployment? 

(a) Workers are not paid as per their work 

(b) Workers are working less than what they are capable of doing 

(c) Workers are not skilled

(d) Workers are not willing to work 

Ans. (b) Workers are working less than what they are capable of doing.

Explanation: When workers are employed in larger numbers than they’re required, their effort becomes divided. This means that here people are apparently working but all of them are made to work less than their true potential, and removing some of them won't affect production at all. This is under employment.

7. Study the picture below and identify to what sector does the activity belong to: 

(a) Primary sector 

(b) Secondary sector 

(c) Tertiary sector 

(d) None of these 

Ans. (c) Tertiary Sector 

Explanation: A woman can be seen buying clothes from the other. A service is being provided to the customer using already manufactured goods. Such services are classified under Tertiary Sector

 

8. Arrange the following in the correct sequence: [CBSE Marking Scheme 2019]

i. Transporting cloth to the workshops 

ii. Sale in shops and showrooms 

iii. Spinning the yarn 

iv. Weaving of the fabric 

Options: 

(a) i–iv–iii–ii 

(b) iii–iv–i–ii 

(c) iv–i–ii–iii 

(d) iii–iv–ii–i 

Ans. (b) iii –iv–i–ii. 

 Fill in the Blanks Fill in the blanks/tables with suitable information: 

10. When we produce goods by exploiting natural products, it is an activity of the ................... . [NCERT] 

Ans. Primary sector. 

Related Theory :

1. When primary products are changed into other valuable goods through ways of manufacturing is called secondary sector. 

For example, using cotton fiber from the plant, we spin yarn and weave cloth and using sugarcane, we make sugar or gur.

 2. Tertiary sector activities help in the development of the primary and secondary sectors. Tertiary sector does not produce any goods but it provides help or support for the production process. Transport, storage, banking, communication, trade are some examples of tertiary activities. 

11. The ......................... sector has become most important in terms of share of the total production in developed countries. Ans. Tertiary 

Explanation: In case of most developed and developing countries, production in all sectors has grown but tertiary sector has grown the most due to reasons like more development and improvement in lifestyle. It employs a very large number of people in the world. 

12. In the ................... sector, the government owns most of the assets and provides all the services. 

Ans. Public

 

13.Fill the blanks in table with correct answer:

OccupationsSectors
TailorTertiary
(A) - ?Primary
Astronaut(B) - ?

Ans. 

(A)Fisherman/Farmer

 (B)Tertiary

 Explanation: Every worker related to Agricultural practices/Fisheries and allied services are concerned with Primary sector activities. Primary sector activities produce goods by exploiting natural resources.All kinds of services like banking, communecation, hospitality, IT sector come under Tertiary sector activities. No goods are produced in this sector.

14. ......................... is an example of an unorganized sector activity. 

Ans. A daily wage labourer working under a contractor

 Related Theory 

An Unorganised sector is characterised by small and scattered units which are largely outside the control of the government. Rules and regulations are not followed in this sector. There’s absence of labour rules and job security in this sector.

15. Workers in the .................... sector do not produce goods. 

Ans. Tertiary Sector 

Explanation: Workers in Primary and Secondary Sector produce goods while workers in Tertiary sector provide services.

 Match the Columns

Choose the correctly matched option from the following: 

16.Match the following sectors in column A with their status given in column B:

 

Column A (Sectors)Column B (Status)
(a)Public sector(i)Service sector
(b)Primary sector(ii)Regular employment
(c)Tertiary sector(iii)Government owns it
(d)Organised sector(iv)Exploits natural resources

Ans:

Column A (Sectors)Column B (Status)
(a)Public sector(iii)Government owns it
(b)Primary sector(iv)Exploits natural resources
(c)Tertiary sector(i)Service sector
(d)Organised sector(ii)Regular employment


 17.Match the following occupations in column A with their sectors in column B:

 

Column A (Occupations)Column B (Sectors)
(a) Bee-keeper(i) Secondary sector
(b) Priest(ii) Unorganised sector
(c) Construction worker(iii) Primary sector
(d) Basket(iv)Tertiary sector

 Ans:

Column A (Occupations)Column B (Sectors)
(a) Bee-keeper(iii) Primary sector
(b) Priest(iv) Tertiary sector
(c) Construction worker(ii)Unorganised sector
(d) Basket(i) Secondary sector

18. Assertion (A) : Not every good or service that is produced and sold needs to be counted to know the total production in each sector. 

      Reason (R) : The value of final goods already includes the value of all the intermediate goods. [CBSE Marking Scheme 2019]

Ans. (a) Both A and R are true and R is the correct explanation of A. 

19. Assertion (A) : GDP (Gross Domestic Product) shows how     big the economy is. 

     Reason (R) : GDP of a country is the value of all intermediate goods and services produced within a country during a particular year. 

Ans. (c) A is correct but R is not correct. 

Explanation: GDP is the total sum of the values of all final goods and services produced by all sectors within a country during a particular year. It indicates how developed and successful an economy is. 

20. 

Assertion (A) : Underemployment can also be called disguised unemployment. 

Reason (R) : Each person is doing some work but no-one is fully employed according to their true potential. This type of unemployment is hidden unlike the common type of unemployment where the job seeker clearly has no job. 

Ans. (a) Both A and R are true and R is the Correct

 Explanation of A. 

                Very Short Anwer Type Questions 

21. Suggest any one way to generate employment in urban areas. [CBSE 2020] 

Ans. Following are the ways in which employment can be generated in urban areas: 

(1) Improve local and inter city transportation. 

(2) Increase vocational education courses. (Mention any one). 

22. Which category of economic sector does the activity of changing natural products into other forms come under? [CBSE 2018] 

Ans. Activities related to changing natural resources into other forms come under the primary sector. 

Related Theory 

 All those economic activities that are undertaken by directly using natural resources are included in the primary sector. For example, mining, forestry, fishing, poultry, etc. 

23. How is GDP calculated? [CBSE 2020] 

Ans. GDP in India is calculated by the expenditure method. Only final goods and services are counted to get the final value. Therefore, GDP = Value of output – Intermediate consumption. 

24. How is public sector different from the private sector? 

Ans. The public sector is owned, managed and controlled by government whereas the private sector is owned, controlled and managed by individuals or group of individuals. 

25. Why is the tertiary sector becoming an important sector in India? Explain the main reason. [CBSE 2020] 

Ans. 

(1) The tertiary sector helps in the development of primary and secondary sectors by transporting goods, providing loans etc. Thus, helping in the development and growth of both primary and secondary sector. 

(2) The tertiary sector provides the basic services like public transportation, medical car, electricity, banking, post office etc. under the control of the government. 

(3) The tertiary sector creates an huge area for employment even for uneducated and unskilled work. 

(4) The tertiary sector distributes the consumer goods to different suppliers. 

 


26.Look at the picture given below and identify the sector to which the characters shown in it belong to. 

Ans.The workers shown in the picture are associated with agricultural sector also known as Primary sector. 

Explanation: Agriculture and related activities are classified under primary sector activities.

 27.Study the table below and answer the question the follows:

 

SectorUnorganisedOrganisedTotal
Primary2402242
Secondary54963
Tertiary761793
Total37028398

 Identify the sector that employs largest number of workers? 

Ans.Primary Sector employs the most number of employees including both Organised and Unorganised sectors

 28.Suggest any one way to increase the income of the marginalised groups in India.[CBSE 2020]

 Ans.Marginal farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets. 

29.What is GDP? [NCERT] 

Ans.GDP is the value of final goods and services produced in each sector during a particular year. 

30.Identify what sector does these products belong to?


 

Ans.These products belong to Secondary Sector.Explanation: All of these products are created by processing products of the primary sector. For example, clothes are made of cotton which is produced by cultivating its crops, food is prepared by cooking fruits and vegetables. Products which are created by processing primary sector products are classified into secondary sector.

 31.Explain the main advantage of organised sector with respect to employment.[CBSE 2020] 

Ans.In the organised sector, terms of employment are regular and people have assured work throughout the year. 

32.Suggest any one way to create employment in semi-rural areas.[NCERT] 

Ans.By setting up of small and agro-based industries, employment can be created in semi-rural areas.

33.The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully and answer the question given below

SectorUnorganisedOrganisedTotal
Primary2
242
Secondary95463
Tertiary177693
Total28

Total in Percentage

100%

 

 What percentage of tertiary sector workers in India are employed in Unorganised Sector according to the table? 

Ans.To calculate percentage of tertiary sector workers employed in unorganised sector: =



Total number of workers in tertiary sector:17 + 76= 93 

Percentage employed in unorganised sector:

 76/93× 100= 81.7%

 

34.Study this picture. Answer the question that follows:

 Identify the sector to which the worker in the picture belongs ? 

Ans.They belong to the Tertiary Sector.Explanation: Both of these workers provide services while one is a shopkeeper other is a milk seller and sells already manufactured products. They do not produce anything on their own. and hence come under tertiary sector.

 

35.In a city, 5000 people work in offices and factories registered with the government, 3000 own offices, clinics in market places with formal license, 7000 people work on street, construction workers and domestic help whereas 9000 people work in small workshops usually not registered with the government. On the basis of the information given above calculate the percentage of people working in the Organised sector and 

 choose the correct option. 

(a)20%

 (b)33%

 (c)50% 

(d)66% 

Ans.(b) 33%

Explanation: Number of People working in the Organised Sector (Companies with formal license of private business with license): 

5000 + 3000= 8000

 Number of People working in the Unorganised Sector (Construction Workers, employees in unregistered workshops):

 

36.Give one example each of primary and tertiary economic sectors.[CBSE 2019] 

Ans.Activities like agriculture, mining, etc. are examples of the primary sector, whereas activities like banking, tourism, etc. are examples of tertiary sector. 

Related Theory:The primary sector is the sector of an economy making direct use of ‘natural resources’ or relating to primary industries, whereas the tertiary sector helps in the development of the primary and secondary sectors. 

37.When was MGNREGA passed? 

Ans.2005

Explanation: In 2005, Government passed MGNREGA as a scheme which guaranteed assured work to disadvantaged classes. It is also called Mahatma Gandhi National Rural Employment Guarantee Act 2005. It established Right to Work in many districts upon its launch.

38.Analyse the table given below and answer the question that follows:This source shows a database of Workers employed in different sectors (in millions)

SectorUnorganisedOrganisedTotal
Primary2002202
Secondary50550
Tertiary8020100
Total33027357
Total in Percentage100%

Calculate, the percentage of people in organised sector?

 (a)8.4% 

(b)9.6% 

(c)7.6%

 (d)10%

 Ans.(c) 7.6%

 Explanation:


 

 

 

 

39.‘‘Tertiary sector activities help in the development of the primary and secondary sectors.’’ Evaluate the statement.[CBSE 2020] 

Ans.‘‘Tertiary sector activities help in the development of the primary and secondary sectors.’’ This statement can be understood by the following points :

 (1) The tertiary sector does not produce any goods by itself but it supports the production process of the primary and secondary sectors. 

(2)The tertiary sector comprises of several essential services such as hospitals, educational institutions, police stations, courts, transports, bank, etc. These basic services boost the primary and secondary sectors simultaneously. 

(3)Goods produced by the primary and secondary sectors are used by and sustained the tertiary sectors to provide services. 

 For example, buildings created by the secondary sector are used by the tertiary sector, such as hotels, colleges, restaurants, residences etc. 

 

40.‘‘The primary sector I the most important sector of economic activity during the initial stages of development.’’ Evaluate the statement. 

Ans.‘‘The primary sector I the most important sector of economic activity during the initial stages of development.’’ This can be asserted using the following points:  

(1)Before technological advancement, people didn’t have much knowledge about construction, manufacturing or any crafts, they only knew how to produce and use natural products through farming, fishing or animal husbandry. It was the only way to sustain human life.

(2) With development, the methods and procedures of farming changed and the agricultural sector prospered even more.  

41.Suggest any three ways to save workers of unorganised sector from exploitation.[CBSE 2020] 

Ans.Measures to save employees of the unorganised sector from exploitation are :

 (1)Workers of the unorganised sector in rural areas are mostly farmers. They can be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.

(2)Workers involved in small scale industries also need support for procuring more raw material. This shall provide them with regular wages. 

(3)These workers should be educated, skilled and made aware of their human and labour rights to protect them from social discrimination and exploitation to the hands of their employers. 

42.How does the public sector contribute to the economic development of the nation? Explain. [CBSE 2018] 

Ans.The public sector contributes to the economic development of the nation in the following ways: 

(1)It promotes rapid economic development through creation and expression of infrastructure. 

(2)It generates financial resources for development. 

(3)It ensures equality of income, wealth and thus a balanced regional development. 

(4)It encourages the development of small, medium and cottage industries. 

(5)It ensures easy availability of goods at moderate rates. 

(6)It contributes to community development i.e., to the human development index (HDI) via health and educational services. 

(Any 3 of the 6 points can be written to get full marks) 

Related Theory:

 An economic activity owned and managed by the government is called a public sector activity.

 43.Underemployment continues to be rampant in the rural areas. Suggest any three ways through which employment for rural people can be generated

Ans.Employment generation 

(1)People can be employed in projects like construction of dam/canal/ roads in the village. 

(2)Government invests and employ people in providing transportation and storage services. 

(3)People can be employed in services like banking, trade, etc.

 (4)Government can identify, promote industries and services in semi-rural areas to enhance employment. 

(5)Government can open centres to give them training and financial assistance to help them become self – employed(6)Any other relevant point 

(Any three points to be explained)[CBSE Marking Scheme 2019] 

OR 

The problem of unemployment can be eradicated in India in the following ways: 

(1)Loans should be provided to small farmers by the government or banks to have more irrigation facilities. This would help farmers by modernising their agricultural equipment and getting facilities of wells and tube-wells. This can also help them to grow a second crop. 

(2)New dams and canals should be constructed which will create more employment in the agriculture sector. 

(3)Facilities for transportation and storage can be improved to get productive employment not only for the farmers but also for the people in these services. 

(4)Some industries, like cold storage and honey collection centres, should be set up in rural areas. These industries will get raw materials from the rural areas easily and could also create employment there. 

(5)Health service centers should be improved or opened. This will create employment as well as enable people to get a health check up easily. 

(6)Government schemes like MNREGA should be implemented by the government. 

(Any 3 of the 6 points can be written to get full marks)

 Related Theory:Unemployment occurs when a person who is actively searching for job is unable to find work. Unemployment is often used as a measure of the health of the economy. The more the unemployment, the less the economic development. 

 

44.Why is the tertiary sector becoming more important in India ? Explain.[CBSE 2020] 

Ans.The tertiary sector is gaining importance because - 

(1)Several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. which are considered as basic services are ensured by the government. 

(2)The more the development of the primary and secondary sectors, the more would be the demand for such services.

 (3)New services based on information and communication technology have become important and essential in a global world with technological advancement. 

(4)Rise in income has led to arise in the living standards of people, which automatically makes them demand services such as restaurants, hotels, gyms, shopping centres, private schools, colleges and hospitals. This boosts the tertiary sector.  

(Mention any 3 of the 4 points to get full marks). 

45.What are the main features of the Mahatma Gandhi National Rural Employment Guarantee Act-2005 (MNREGA)?[NCERT] 

Ans.Main Features of MNREGA-2005: 

(1)It was implemented by the central government in India as the Right to work in 200 districts of India. 

(2)Under this Act, all those who are able to and are in need of work are guaranteed 100 days of employment in a year by the government.  

(3)If government fails in its duty to provide employment, it will give unemployment allowances to the people.

 46.How can move employment be generated in the agriculture sector?Explain any three methods.[CBSE 2019] 

Ans.More employment can be generated in the agriculture sector alone in the following ways: 

(1) Increase in irrigation facilities: Without irrigation, only a single crop can be grown in most agricultural fields, which means less working opportunities, but if irrigation is provided, two or three crops can be grown on the same field. So more people will be employed.

 (2)Provide Basic facilities: Government should provide basic infrastructure in agriculture related facilities such as transportation (building of roads), irrigation, banking to ease the work of farmers. Subsidies can be provided. Dams and storage's can be built. 

(3)Provide them easy loan: If people are provided easy bank loans, then they could start small businesses, which will make them self-dependent.

 (4)Storage: Storage facilities should be provided to farmers so that they can store their produce and can be able to sell it later.

 (Any 3 of the 4 points can be written to get full marks) 

Related Theory:

Agriculture industry is a primary industry and many rural households depend on it for their livelihood but they are not able to earn a genuine amount because of the exploitation they face.

47.Distinguish the service conditions of organized sector with that of unorganized sector.


48.Distinguish between public sector and private sector in three points for each with examples.

Ans: 

Public SectorPrivate Sector
This sector is controlled and managed by the governmentThis is controlled and managed by an individual or a group of few people.
Public welfare is the main aim of this sector.Getting maximum profit is the main aim of this sector.
Indian Railways, Post Offces,BSNL are examples of public sector undertakings in India.Reliance Industries Ltd.,TISCO are examples of private sector undertakings in India.

49.Why is the organised sector preferred by employees? Explain. [CBSE 2020] 

Ans.The organised sector is preferred by employees because - 

(1).Assured availability of work - Organised sector ensures year-long availability of work and continuous livelihood support. Employees in the unorganised sector don’t have continuous work available. 

(2)Job security - Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours. They are paid overtime otherwise. They cannot be removed withot any proper reason. 

(3)Added benefits and incentives - Employees of the organised sector get paid leave, provident fund and gratuity while employees of the unorganised sector do not have any such guarantee. 

 

50.Mention the employment conditions prevailing in the organised sector.[NCERT] 

Ans.The employment conditions prevailing in the organised sectors are as follows: 

(1)People working in the organised sectors have job security and get regular monthly salary. 

(2)They get paid leaves, salary during holidays, medical facilities, provident fund, gratuity, pension after retirement etc. 

(3)People working in this sector have fixed working hours.


LONG ANSWER:

51.“The declining share of agriculture in the gross domestic product (GDP) is a matter of serious concern in India.” Support the statement. [CBSE 2018] 

Ans.The declining share of agriculture in the gross domestic product (GDP) is a matter of serious concern in India because: 

(1)Indian farmers are facing challenge from international competitors. 

(2)The government is reducing investment in the agricultural sector, especially the irrigation sector.  

(3)Subsidy in fertilisers has decreased, leading to a rise in the cost of production. 

(4)There has been a reduction in import duties on agricultural products. So cheap agricultural products are coming from abroad. 

(5)Farmers are withdrawing their investment in the agriculture industry, causing a downfall in employments.

 52.Highlight any five benefits of the organised sector, with examples.[CBSE 2019] 

Ans.Benefits of the organised sector are as follows:  

(1)Workers of the organised sector get regular and assured employment. 

(2)Companies in the organised sector are registered/ enlisted under the government, and have to follow its rules and regulations which are mentioned in various laws such as Factories Act, Minimum Wages Act and Payment of Gratuity Act. 

(3)Workers in the organised sectors enjoy privileges of job security and are expected to work only for a fixed number of hours. 

(4)They also get several other benefits like paid leaves, provident fund, gratuity, etc

(5)They also receive medical benefits, pension, etc.

(6)There is a provision for overtime payment, in case the workers do their duties after the fixed working hours. 

(Any 5 of the 6 points can be written to get full marks) 

53.Do you think the classification of economic activities into primary, secondary and tertiary is useful? If yes, give reasons to support your view.[NCERT] 

Ans.Yes, it is very useful because  

(1)This classification gives us the total number of workers engaged in different sectors.

(2)This classification gives us the clarity of share of each sector in GDP 

(3)This classification tells us which sectors is growing well and which one is lagging behind and accordingly measures can be taken to manage them. 

(4)This classification tells us how these sectors are interdependent on each other.

54.Compare the economic activities of the private sector with that of the public sector. [CBSE 2019]  

Ans

Public SectorPrivate Sector
Most of the assets of the public sector are owned by the government. The private sector is owned by individuals or group of individuals.
G o v e r n m e n t provides all services in the public sector.In the private sector, services are offered by the owner of the firm.
G o v e r n m e n t raises money for various activities through taxes.The private sector collects money for the services they provide.
In public sector, the motive is not to earn profits.Activities in the private sector are guided by the motive to earn profits..

(Any 5 of 7 points can be written to get full marks)

 55.‘There are a large number of activities which are the primary responsibility of the government.’ Do you agree to it? Support your view with arguments.[NCERT] 

Ans.Yes, I agree. For example, 

(1)Providing health and education facilities for all is the prime responsibility of the governments at all levels. 

(2)Running proper schools and providing quality education, particularly elementary education is the duty of the government. India’s size of illiterate population is one of the largest in the world. 

(3)Similarly, half of India’s children are malnourished and a quarter of them are critically ill. Government also needs to pay attention to aspects of human development such as availability of safe drinking water, housing facilities, for the poor and food and nutrition. 

(4)It is also the duty of the government to take care of the poorest and most ignored regions of the country through increased spending in such areas. 

56.Highlight any five reasons for the importance of tertiary sector in India.[CBSE Topper 2019]


57.Describe the employment conditions prevailing in the unorganised sector of the economy.  

OR

“Workers are exploited in the unorganised sector.” Give reasons to support this statement. [CBSE Marking Scheme 2019]

Ans.Employment conditions in the unorganized sector: 

 (1) There are rule and regulations but these are not followed.  

(2) Jobs are not secured. 

 (3) Jobs are low paid.  

(4) No provisions for over time, holidays, sick leaves etc.  

(5)People can be asked to leave without any reason.  

(6) They are largely outside the control of government.   

Any other relevant point. Any five points to be described.

58.Show how tertiary sector has emerged as the largest producing sector in India.[CBSE Marking Scheme 2018]

Ans.Importance of Tertiary Sector : 

(1)Basic services like hospitals, educational institutions, defence, and transport are the part of tertiary sector. 

(2)Development of agriculture and industry leads to the development of services 

(3)As the income level rises, tourism, shopping, private schools and professional training also expands. People start demanding more services this leads to the expansion of the tertiary sector.

 (4)Information and communication technology also play an important role in this expansion. 

(5)Large number of workers are engaged in this sector, as the demand for services grow.

 

59.How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five measures.

 Ans:


60.Explain how:

(A)Public sector contributes to the economic development of a nation 

(B)Government contributes towards helping private sector grow 

Ans.(A)In many ways does the public sector contributes to the economic development of our nation. Let’s go through some of the ways below in detail:

 (1)Public sector promotes rapid economic development through creation and expression of infrastructure.

 (2)t generates financial resources for development.

 (3)It creates employment opportunities and ensures equality of income, wealth and thus a balanced regional development.  

(4)It encourages the development of small, medium and cottage industries, and ensures easy availability of goods at moderate rates.  

(5)Contributes to community development i.e., to the Human Development Index (HDI) via health and educational services. 

(Any 4 points will award full marks) 

(B)There are some activities, which the government has to support for the private sector to continue their production or business. For example, selling electricity at the cost of generation may push up the costs of production of industries. Many units, especially small-scale units, might have to shut down. Government steps in by producing and supplying electricity at rates which these industries can afford. Government has to bear part of the cost. Similarly, the government in India buys wheat and rice from farmers at a ‘fair price’. This it stores in its godowns and sells at a lower price to consumers through ration shops. In this way, the government supports both farmers and consumers.

 

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