Page 58 - Understanding Economics for Class 10

12. Distinguish between the public sector and private sector.
Ans. Public Sector Private Sector
(i) In the public sector, the government (i) In the private sector, ownership of assets
owns most of the assets and provides and delivery of services is in the hands
Goyal Brothers Prakashan
all the services. For example, Railways, of private individuals or companies.
Hindustan Petroleum, etc. For example, Maruti Udyog, Reliance
Industries Limited (RIL) etc..

(ii) The purpose of the public sector is not (ii) Profit is the main motive. It has nothing
just to earn profits but to work for the to do with the welfare of the public.
welfare of the public.

(iii) The public sector provides basic (iii) The private sector provides consumer
facilities which include health, hygiene, goods to the people at high rates.
education, drinking water, food, etc. at
subsidised rates.

13. What are final and intermediate goods?
Ans. Final goods and services are the output of production processes, and demand for these goods
and services is directly determined by consumer need or preference. For example, biscuits,
butter, etc. are final goods that reach to the consumers.
Intermediate goods and services are required for production of other goods and services. For example,
wheat, sugarcane, etc. are intermediate goods used up in producing final goods and services.
14. How do final and intermediate goods help in calculating Gross Domestic Product or GDP?
Ans. The value of final goods and services produced in the three sectors during a particular
year provides the total production of the sector for that year. And the sum production in
the three sectors gives the Gross Domestic Product or GDP of a country. It is the value of
all final goods and services produced within a country during a particular year. We don’t
take the value of intermediate goods as value of final goods already contains the value of
intermediate goods. Taking its value will lead to double counting.

vi. Long Answer type Questions
1. Tertiary sector activities help in the development of Primary and Secondary sectors.
Substantiate your answer.
Ans. In any country, several services such as hospitals, educational institutions, post and telegraph
services, police stations, courts, village administrative offices, municipal corporations,
defense, transport, banks, and insurance companies, are required. These can be considered
basic services.
In a developing country, the government must take responsibility for the provision of these services.
The development of agriculture and industry leads to the development of services such as
transport, trade, and storage.
The greater the development of the primary and secondary sectors, the more would be
demand for such services.

2. What are the advantages of working in an organised sector?
Ans. An organised sector covers those enterprises or places of work where the terms of employment
are regular and therefore, people have assured work. They are registered by the government
and have to follow its rules and regulations which are given in various laws such as the
Factories Act, the Minimum Wages Act, the Payment of Gratuity Act, Shops Act, etc.
(i) Workers in the organised sector enjoy security of employment.

E-52 Economics Class X