Page 49 - Understanding Economics for Class 10

(ii) The public sector activities are set for the betterment of the public itself. The reason the
government has taken up the public sector is so that proper facilities can be provided to
the people of the country.
(iii) Private sector cannot provide everything needed by the society at a reasonable cost.
Goyal Brothers Prakashan
(iv) Heavy or large spending of money is required in certain areas, which is beyond the capacity
of the private sector.

21. Explain how the public sector contributes to the economic development of a nation.
Ans. The public sector is the sector that comes under the government of India. The reason for the
government to take responsibility for this sector is because the basic necessities of people
including water, electricity, irrigation, all fall under this category. If these departments are left
unattended, it will result in the downfall of the economy of a country because the growth of
the country would stop. The economic development of a country depends upon the development
of the people and if people are deprived of the basic necessities, the country’s economic
development would be affected. Government encourages small and large industries to flourish
and provides employment under this section.

22. The workers in the unorganised sector need protection on the following issues : wages, safety
and health. Explain with examples.
Ans. The unorganised sector is characterised by small and scattered units, which are largely outside
the control of the government. There are rules and regulations but these are not followed. The
workers in the unorganised sector need protection:
Wages: The income of workers in the unorganised sector is not fixed and they are barely
able to meet the needs to lead a decent livelihood. Hence, proper and fixed wages should be
given to these workers so that they can grow and contribute to the growth of the country. For
example – a painter only gets paid the wages for the days he works and on the other days, he
is jobless and is able to earn nothing.
Safety: No safety is provided to the workers working in the unorganised sector. There is no
job security and anyone can be fired and removed from their work as per the requirement of
the labourers. For example – A labour working in the construction of a building is left with
no work once the construction is complete and has no guarantee of getting work again.
Health: Health is a very important factor for the growth and development of the country.
The unorganised sector is given no medical security and if any accident occurs while they are
working, the employer is not responsible for their health. For example – there is no sick leave
for labourers working on daily wages.

23. A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the
unorganised sector. The total income of the city in this year (1997-1998) was `60,000 million.
Out of this `32,000 million was generated in the organised sector. Present this data as a table.
What kind of ways should be thought of for generating more employment in the city.
Ans. Workers Income Generated

Organized 4,00,000 32,000 million
Unorganized 11,00,000 28,000 million
Total 15,00,000 60,000 million

The table clearly shows that the income generated in organised sector is more than 50% of
the total income of Ahmedabad but it employs only 25% of the workers. In order to increase
employment opportunities for the people more industries should be set up, proper education
must be provided to all and proper facilities under the public sector must be provided to all.
Economics Class X E-43