Page 31 - Understanding Economics for Class 10

 This is the general pattern that is observed in developed countries. Over time, shift has
taken place from primary to secondary to tertiary sector. This shows changing importance
of the sectors as well.

Goyal Brothers Prakashan
Lets Work these out (Page No. 23)
1. What does the history of developed countries indicate about the shifts that have taken
place between sectors?
Ans. General pattern that is observed in developed countries is a shift from primary to
secondary and then from secondary to tertiary sector.
(i) Initially, primary sector was the most important sector of economic activity. Due to
new methods in production, this sector started expanding both in terms of production
and employment. People started taking up new activities of buying and selling.
(ii) Then there is a shift from primary to secondary sector both in terms of production
and employment.

(iii) There has been a further shift from secondary to tertiary sector. Information technology
such as internet cafe, ATM booths, call centres, software companies have catered a
large segment of the market providing employment to large number of people. The
service sector has become the most important sector in terms of both employment
and total production.

2. Correct and arrange the important aspects for calculating GDP from this jumble.
To count goods and services we add the number that are produced. We count all those that
were produced in the last five years. Since we should not leave out anything we add up all
these goods and services.
Ans. To count goods and services we add the number that are produced. Since we should not leave
out anything we add up all these goods and services. We count all those that were produced
in the last five years.

3. Discuss with your teacher how you could calculate the total value of a good or service by
using the method of value added at each stage.

Ans. Value Added method is, value of intermediate good is deducted from the value of output. Example:
(i) Suppose a baker requires only flour to produce goods, he purchases flour from the Miller
as an intermediate good worth `30 and by using production activities, he converts the flour
into bread and sell the bread for `50.
(ii) Now in this example, flour is an intermediate good having value of `30. Value of Bread is
value of output which is `50. According to value added method, value added by baker is
50 – 30 = 20 (Value of output-value of intermediate consumption). It shows value added
by baker is `20.

PrimAry, SecondAry And tertiAry SectorS in indiA
 Graph given below shows the production of goods and services in the three sectors for
the year 1973-74 and 2013-14.

Economics Class X E-25