Page 38 - Understanding Economics for Class 10

3. How would income and employment increase if farmers were provided with irrigation
and marketing facilities?
Ans. If farmers were provided with better irrigation facilities, they can bring more area under
irrigation and hence cultivation. They will be able to produce more, can produce more
Goyal Brothers Prakashan
variety of crops. This will increase both the employment as more number of people are
required for sowing, harvesting etc. and hence they will earn more.
Better marketing facilities are also required so that farmers can get a market to sell their
produce at a fair price. Hence setting up of local markets nearby will help both in creating
employment and increasing income.

4. In what ways can employment be increased in urban areas?
Ans. Employment can be increased in urban areas in the following ways:
(i) By setting up of factories/industries.
(ii) By investing in foreign companies so that they spread their business in our country
and provide employment.
(iii) By investing in education and health sector. More teachers, staff, doctors, nurses
would be required and increases employment options.
(iv) By improving means of transport and communication.
(v) By encouraging Tourism, regional crafts.
(vi) By Promoting new services like IT. Over the years IT industry like Infosys, Wipro
are providing huge employment opportunities in big cities like Bengaluru, Hyderabad,
Pune, Chennai, Gurugram etc.

diviSion of SectorS AS orgAniSed And UnorgAniSed
On the basis of the way people are employed, their conditions of work, rules and regulations
that are followed in regard to their employment, the economic activities can be classified as
organised and unorganised.
Let’s take an example
Kanta Kamal
(i) She works in an office (i) He is daily wage labourer in a grocery shop

(ii) Her office timings are from 9.30 a.m. (ii) He goes to the shop at 7:30 in the
to 5.30 p.m. morning and works till 8:00 p.m. in
the evening.
(iii) She gets her salary regularly at the end (iii) He is given his wages.
of every month.
(iv) In addition to the salary, she also gets (iv) He gets no other allowances apart from
provident fund as per the rules laid his wages.
down by the government, medical and
other allowances.
(v) She gets a paid holiday, Sunday. (v) He is not paid for the days he does
not work. He has therefore no leave
or paid holidays.
(vi) At the time of joining, she was given (vi) No formal letter of being appointed in
an appointment letter stating all the the shop is given. He can be asked to
terms and conditions of work. leave anytime by his employer.
This example shows difference in working conditions between Kanta and Kamal. Kanta works
in the organised sector whereas Kamal works in unorganised Sector.

E-32 Economics Class X