Page 60 - Understanding Economics for Class 10

6. There has been a big change in the three sectors of economic activities but a similar shift
has not taken place in the share of employment. Explain
Ans. The data for India, for the last four decades, shows that there has been a change in the
share of the three sectors in the country’s GDP, but a similar shift has not taken place in
employment which remains in the primary sector. This is because not enough jobs were
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created in the secondary and tertiary sectors.
Even though industrial output or production of goods went up by more than nine times
during the period, employment in the industry went up by around three times. The same
applies to tertiary sector as well. While production in the service sector rose by more than
14 times, employment in the service sector rose around five times.
As a result, more than half of the workers in the country are engaged in the primary sector, mainly
in agriculture, producing only a quarter of the GDP. In contrast to this, the secondary and tertiary
sectors produce three-fourth of the produce whereas they employ less than half the people.

7. How far is it correct to say that several services which cannot be provided by private sector,
can be provided by the public sector? Explain.
Ans. There are several things needed by the society as a whole like sanitation system, safe
drinking water, education, etc. which the private sector will not provide at reasonable cost.
There are some activities, which the government has to support. The private sector may not
continue their production or business unless government encourages it. For example, selling
electricity at the cost of generation may push up the costs of production of industries. Many
units, especially small-scale units, might have to shut down. Government here steps in by
producing and supplying electricity at rates which these industries can afford. Government
has to bear part of the cost. Similarly, the government in India buys wheat and rice from
farmers at a ‘fair price.’ It is stores in the godowns and sells at a lower price to consumers
through ration shops. The government has to bear some of the cost. In this way, the
government supports both farmers and consumers. Heavy or large spending of money is
required in certain areas, which is beyond the capacity of the private sector. It is not easy
to collect money from thousands of people who use these facilities. It is also the duty of
the government to take care of the poorest and most ignored regions of the country through
increased spending in such areas.
Running proper schools and providing quality education, particularly elementary education,
is the duty of the government.
8. Which was the largest producing sector in 2013-14? State the reasons.
Ans. Basic services: 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 has to take responsibility
for the provision of these services.
Development of primary and secondary sectors: 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.
Rise in income levels: As income levels rise, certain sections of people start demanding many
more services like eating out, tourism, shopping, private hospitals, private schools, and professional
training centers. We can see this change quite sharply in cities, especially in big cities.
Rise in information technology: Over the past decade or so, certain new services, such as
those based on information and communication technology have become essential. The
production of these services has been rising rapidly.

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E-54 Economics Class X