Page 47 - Understanding Economics for Class 10

11. Distinguish between open unemployment and disguised unemployment.
Ans. Open unemployment Disguised Unemployment
(i) Open unemployment is when a person (i) Disguised unemployment is when a
is willing to work, is educated but is person is apparently working but is made
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unable to get a job and work. to work less than his or her potential.
(ii) This kind of unemployment is visible (ii) This kind of unemployment is not clearly
visible.

(iii) This is commonly seen in urban areas. (iii) This kind of employment is quite evident
in villages where people working in farms
consider themselves employed but are
actually working less than their potential.

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.
Ans. No, this is not correct. The tertiary sector is playing a significant role in the development of
the Indian Economy. In the year 2003, the tertiary sector replaced the primary sector as the
most producing sector in the country. A few reasons to support this are given below:
(i) The primary and secondary sectors can only flourish if the tertiary sector is there to support them.
(ii) The tertiary sector adds up a lot to the National income of the country.
(iii) Education, which is the basis of everything, comes under the tertiary sector. A person
working as a teacher comes under the tertiary sector.
(iv) This sector provides the maximum employment opportunities to the people in the country.
(v) IT, communication are developing fast and providing great employment opportunities to
the people.

13. Service sector in India employs two different kinds of people. Who are these?
Ans. Service sector in India employs two different types of people. These people are:
(i) Highly Skilled labour, which includes teachers, doctors, lawyers, bankers, IT officials, etc.
These people are permanently employed.
(ii) Less Skilled Labour, which includes vendors, electricians, plumbers, etc. These people are
not permanently employed.

14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons
in support of your answer.
Ans. Yes, it is correct to say that workers are exploited in the unorganised sector because
(i) The unorganised sector is characterised by small and scattered units, which are largely
outside the control of the government.
(ii) There are rules and regulations but these are not followed.
(iii) Jobs here are low paid and not regular. More work is taken from them in comparison to
what they are paid.
(iv) They have no provisions for extra pay for overtime and no medical benefits.
(v) The biggest problem in working in this sector is that there is no job security.
15. How are the activities in the economy classified on the basis of employment conditions?
Ans. On the basis of the employment conditions, the economy can be classified into two sectors:
(i) Organised Sector: Enterprises registered under the Government of India, who have an
employee-friendly environment and are provided with various facilities including high wages.

Economics Class X E-41