The document discusses the classification of economic activities into primary, secondary and tertiary sectors. It explains that this classification is useful for understanding employment trends, assessing each sector's GDP contribution, and identifying areas that need government support. One should focus on employment and GDP for each sector because it provides insights into per capita income, productivity and economic growth. The tertiary sector involves services and differs from the other sectors in that it does not produce tangible goods. Employment conditions are also classified into organized and unorganized sectors based on factors like job security, benefits, and workplace regulations.
The document discusses the classification of economic activities into primary, secondary and tertiary sectors. It explains that this classification is useful for understanding employment trends, assessing each sector's GDP contribution, and identifying areas that need government support. One should focus on employment and GDP for each sector because it provides insights into per capita income, productivity and economic growth. The tertiary sector involves services and differs from the other sectors in that it does not produce tangible goods. Employment conditions are also classified into organized and unorganized sectors based on factors like job security, benefits, and workplace regulations.
The document discusses the classification of economic activities into primary, secondary and tertiary sectors. It explains that this classification is useful for understanding employment trends, assessing each sector's GDP contribution, and identifying areas that need government support. One should focus on employment and GDP for each sector because it provides insights into per capita income, productivity and economic growth. The tertiary sector involves services and differs from the other sectors in that it does not produce tangible goods. Employment conditions are also classified into organized and unorganized sectors based on factors like job security, benefits, and workplace regulations.
The document discusses the classification of economic activities into primary, secondary and tertiary sectors. It explains that this classification is useful for understanding employment trends, assessing each sector's GDP contribution, and identifying areas that need government support. One should focus on employment and GDP for each sector because it provides insights into per capita income, productivity and economic growth. The tertiary sector involves services and differs from the other sectors in that it does not produce tangible goods. Employment conditions are also classified into organized and unorganized sectors based on factors like job security, benefits, and workplace regulations.
Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how. ANSWER:
The classification of economic activities into primary, secondary and tertiary 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 three basic sectors for smooth economic administration and development.
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Question 7:
For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss. ANSWER:
For each of the sectors that we came across in this chapter, one should focus on employment and GDP because these determine the size of a country’s economy. A focus on employment and GDP helps determine two important things—per capita income and productivity. Hence, in each of the three sectors, employment rate and status as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it Question 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. ANSWER:
Attempt this question on your own.
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Question 9:
How is the tertiary sector different from other sectors? Illustrate with a few examples. ANSWER:
The tertiary sector is different from the other sectors because it does not manufacture or produce anything. For this reason, it is also known as the service sector. It aids the primary and secondary sectors in development. The tertiary sector involves services like transport, storage of goods, communications, banking and administrative work.
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Question 10:
What do you understand by disguised unemployment? Explain with an example each
from the urban and rural areas. ANSWER:
Disguised unemployment is a form of underemployment where one has a job but the work is divided. It is not apparent as compared to someone without a job who is clearly unemployed. In rural areas, this can be seen in the farming community where all members of a family might be working on a farm even though so many hands are not required. They do so because of lack of another job. In urban areas, disguised unemployment can be seen in the service sector where painters, plumbers, repair persons and those doing odd jobs have work but they may not find daily or regular employment. Question 11:
Distinguish between open unemployment and disguised unemployment.
ANSWER:
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. Page No 36:
Question 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. ANSWER:
“Tertiary sector is not playing any significant role in the development of the Indian economy”. This statement is not true. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades. In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003. The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment. Question 11:
Distinguish between open unemployment and disguised unemployment.
ANSWER:
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. Question 13:
Service sector in India employs two different kinds of people. Who are these? ANSWER:
Service sector in India employs two different kinds of people. These are primary and ancillary workers. Primary workers include those who directly provide services while ancillary workers are composed of those who give services to the service providers. For example, consultants make available their services to consultancy firms etc. Page No 37:
Question 14:
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer. ANSWER:
Workers are exploited in the unorganised sector. I agree with this view. The 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. Question 15:
How are the activities in the economy classified on the basis of employment conditions? ANSWER:
On the basis of employment conditions, activities in the economy are classified as
organised and unorganised. The organised sector offers job security and employment benefits, while the unorganised sector is marked by low wages and lack of job security. In rural areas, the unorganised sector comprises landless agricultural labourers, sharecroppers and artisans. In urban areas, this group contains small-scale industry workers, construction workers, street vendors, rag-pickers, etc.
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Question 16:
Compare the employment conditions prevailing in the organised and unorganised
sectors. ANSWER:
The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.
