NCERT Solutions For Class 11 Economics Chapter 7

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NCERT Solutions for Class 11 Economics

Indian Economic Development Chapter 7


Unit III- Employment: Growth, Informalisation and Other Issue

Exercise : Solutions of Questions on Page Number : 134


Q1 :
Who is a worker?

Answer :

People work for earning their livelihood. A person who is involved in production activity contributing to the flow of goods and services
in the economy is called a worker. In other words, a worker is regarded as an economic agent who contributes to the production of
goods and services, thereby, to the GDP during a particular year. A worker renders services to others and receives rewards in the
form of wages, salaries or in kind. Hence, we can say that when an individual is engaged in a production activity or self employed
and contributes to the generation of GDP, then, that person is referred to as a worker. For example, a doctor, an engineer working in
a factory, etc.

Q2 :
Define worker-population ratio.

Answer :

Worker-Population ratio is defined as the proportion of population that is actively contributing to the production of goods and
services. It is measured by the ratio between the country's workforce and its total population. This ratio acts as an indicator for
assessing the employment level in a particular country at any point of time. Higher the worker-population ratio higher is the
engagement of people in the productive activities and vice-versa. Worker-population ratio is estimated by dividing the total work
force by the total population and multiplying by 100. Algebraically,

Q3 :
Are the following workers — a beggar, a thief, a smuggler, a gambler? Why?

Answer :

No, a beggar, a thief, a smuggler, a gambler cannot be called as workers. A worker is involved in a production activity that
contributes to the GDP of a country. As none of them (a beggar, a thief, a smuggler and a gambler) are involved in any legal
economic production activity that contributes to the national income of the country, hence, none of them can be regarded as
workers.

Q4 :
Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport
operator (vi) construction worker.

Answer :

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Tuition master and the owner of a saloon are the odd man out. This is because all others are hired while these two are self
employed. Tuition master and the owner of a saloon are engaged in their own business and own profession, whereas, the cobbler,
the construction worker, the transport operator and the cashier in the Mother Dairy are hired and render their services to others in
exchange of rewards in the form of salaries or wages.

Q5 :
The newly emerging jobs are found mostly in the ____________sector.

(service/manufacturing).

Answer :

The newly emerging jobs are found mostly in the service sector.

The service sector is taking a lead over the manufacturing sector as a source of employment. It includes trade, commerce, banking,
insurance, health and other services. These services are developing at a faster pace than the manufacturing and other allied
production activities. This is because of the globalisation of the economy.

Q6 :
An establishment with four hired workers is known as __________ (formal/informal) sector establishment.

Answer :

An establishment with four hired workers is known as informal sector establishment.

An informal sector is an unorganised sector of the economy. It includes all enterprises that hire less than 10 workers, except farming
and self employment ventures. Therefore, an establishment with four hired workers is known as informal sector establishment.

Q7 :
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker?
Why?

Answer :

Yes, Raj can be considered as a worker. This is because his work is contributing to the total output of the farm. Further, as implied
by the definition of worker, a person who is engaged in an economic activity or is assisting anyone in an economic activity and,
thereby, contributing to the GDP of the country is regarded as worker, so, Raj is a worker.

Q8 :
Compared to urban women, more rural women are found working. Why?

Answer :

The percentage of female workforce in the rural areas is nearly 30 % while it is only 14 % in the urban areas. This depicts that as
compared to the urban women more rural women accounts for higher share in the female workforce. While on the one hand, the
rural women are less educated, unskilled and low productive, on the other hand, urban women being more educated and more
skilled and productive have higher probability to get employment. Ironically, the urban female accounts for lesser share in the female
workforce as compared to their rural counterparts. The following are the reasons for low share of urban females in the total female
workforce:

1. As in the agricultural and allied activities, high degree of skills and specialisations is not required, so, rural women engage themselves to
support their family on farms.

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2. As poverty in the rural areas is more widespread than in the urban areas, so, the rural women engage themselves in low productive jobs
just to support the livelihood of their families.

3. As the urban families usually earn comparatively higher income than the rural families and, further, poverty in the urban areas is not as
widespread as that of in the rural areas, so, there is lesser need for female members to get themselves employed.

4. The decision to take up jobs by the female members rests on the family's decision rather than her individual decision.

5. Although female literacy in India is improving, yet it has to get much better before urban female accounts for higher share in the total female
workforce.

Q9 :
Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated
by her husband. Can she be considered as a worker? Why?

Answer :

A person who is involved in the production activity and contributes to the generation of GDP is referred to as worker. As here Meena
works in the cloth shop to support her husband and contributes to GDP by rendering her services, so, she can be considered as a
worker.

Q10 :
Find the odd man out (i) rickshaw puller who works under a rick- shaw owner (ii) mason (iii) mechanic shop worker (iv)
shoeshine boy.

Answer :

Shoe shine boy is a odd man out. All others (a rickshaw puller, a mason, and mechanic shop worker) are hired workers. They
render their services to their employers and receive rewards in the form of salaries or wages in return. On the other hand, shoe
shine boy is a self-employed worker and carries out his occupation himself. In other words, he is engaged in his own profession.

Q11 :
The following table shows distribution of workforce in India for the year 1972-73. Analyse it and give reasons for the nature
of workforce distribution. You will notice that the data is pertaining to the situation in India 30 years ago!

Workforce (in millions)


Place of Residence
Male Female Total
Rural 125 69 195
Urban 32 7 39

Answer :

(i) The total workforce in India in the year 1972-73 was 234 million that includes 195 million workforce of rural and 39 million of the
urban population. This indicates a greater involvement of rural workforce comprising of 83 % of the total workforce as compared to
17% of the urban workforce. This is because a majority of rural population was engaged in agricultural and allied sectors.

(ii) The rural workforce comprises of 64% of the male workforce and 36% of female workforce. On the contrast, the urban workforce
comprises of about 82% of male workforce and 18% of female workforce. The participation of males in both rural as well as in the

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urban areas is higher than the females because of the lack of opportunities available to women for acquiring education. Also,
families often discouraged female members to take up job and, consequently, women were confined to household works only.

(iii) Comparing urban female work force with that of the rural female workforce, we can conclude that the females in the rural areas
formed 36 % of the workforce, whereas, the females in the urban areas formed only 18% of the workforce. In the rural areas,
despite a majority of the population was engaged in farming and allied activities, agricultural sector had low productivity.
Consequent to the low productivity, rural people had low earnings that further led to widespread poverty in the rural areas.

Thus, it can be concluded by analysing the above data that Indian economy suffered from low productivity, acute unemployment and
widespread poverty, disguised unemployment in agricultural sector and low female participation rate in the workforce 30 years ago

Q12 :
The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the
workforce (urban and total) for India?

Estimates of Worker
Region population Population
(in crores) Ratio

Answer :

Estimates of Worker
Estimated No. of Workers
Region population Population
(in crores)
(in crores) Ratio
Rural 71.88 41.9

Urban

Q13 :
Why are regular salaried employees more in urban areas than in rural areas?

Answer :

Regular salaried employees are those hired workers who are on the permanent payrolls of their employers. They are usually skilled
workers and are entitled to all types of social security benefits. The concentration of these workers is higher in the urban areas as
compared to the rural areas because such jobs require skilled and specialised workers. The opportunities to acquire and enhance
such skills are available more in the urban areas. And these skills are acquired through the process of training and education that
cannot be accessed in the rural areas due to the lack of investment, infrastructure and low literacy level of rural people. Further, the
big companies are concentrated only in the urban areas due to the presence of infrastructure and availability of modern facilities like
banks, transport and communication, etc. Therefore, the bulk of the jobs for the regular salaried employees are concentrated more
in the urban areas resulting in the increase in number of the regular salaried employees.

Q14 :
Why are less women found in regular salaried employment?

Answer :

Lesser women are found in regular salaried employment as compared to men because a larger proportion of women are engaged in
the economic activities without stable contracts and steady income. The stable contracts and steady income are two features

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prevalent in the regular salaried employment. Women are engaged in informal segments of the economy, where they are not
entitled to any social security benefits. Moreover, women work in more vulnerable situations than men and have lower bargaining
power and, consequently, are paid lesser than the male workforce. Thus, the women workers are more likely to be found in the self-
employment and casual work as compared to men rather than regular salaried employment.

Q15 :
Analyse the recent trends in sectoral distribution of workforce in India.

Answer :

The three major sectors of an economy i.e. Primary, Secondary and Tertiary collectively are known as occupational structure of an
economy. The primary sector includes agriculture, forestry, fishing, mining, etc. The secondary sector consists of manufacturing and
construction activities. Tertiary sector includes various services like transport, communication, trade, etc. Primary sector is the prime
source of employment for the majority of the workers in India. Its contribution is as high as 57.3 % of our total workforce. About
17.6% and 25.1% of the total workforce is employed in the secondary and the service sector respectively. People living in the urban
areas are largely engaged in secondary and tertiary sectors and those in the rural areas are involved basically in primary sectors.
Also, the tertiary sector is taking a lead over the secondary sector as a source of employment and increasing share in India's GDP.
As far as the distribution of male and female is considered, a high percentage of total female workforces are engaged in the primary
sector than in the secondary and tertiary sectors.

Q16 :
Compared to the 1970s, there has hardly been any change in the distribution of workforce across various industries.
Comment.

Answer :

India being an agrarian economy has majority of population dependent on the agricultural sector to earn their livelihood. Although,
the developmental strategies in India have aimed at the reduction of population dependent on agriculture, yet the reduction in the
population engaged in agricultural sector has not been significant. In 1972-73, about 74 % of the work force was engaged in primary
sector which reduced to 60% in 1999-00. On the other hand, the shares of secondary and tertiary sectors in employment rose from
11 % to 16 % and 15 % to 24 % respectively. The work force distribution indicates that over the last three decades i.e. from 1972-
2000, people have moved from self-employment and regular salaried employment to casual wage worker. This particular pattern of
moving from self employment and regular salaried employment to casual wage work is termed as casualisation of work force. Thus,
it can be concluded that although changes in the distribution of workforce have taken place, yet industrial and tertiary sector need to
increase their share in the workforce distribution by generating more employment opportunities and absorbing excess labour from
the agricultural sector.

Q17 :
Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in
India? How?

Answer :

Economic growth implies growth in the GDP, i.e. growth in the aggregate output produced during an accounting period within the
domestic territory of an economy. The increased output level is achieved by generating more employment opportunities and through
employing better technology. During the recent past, India has witnessed jobless economic growth that raised the aggregate output
level without the proportionate rise in the employment opportunities and, consequently, unemployment continued to exist. The
reason is that the rise in GDP is caused by employing modern and improved technology that substituted labour for machines. This
failed to generate new employment opportunities in the industrial and the tertiary sectors. Thus, the industrial and the tertiary sectors
failed to absorb the excess labour from the agricultural sector. As a result, disguised unemployment in the agricultural sector
continued along with low levels of productivity and massive poverty. In addition to this, MNCs that played an important role in India's

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economic growth provided employment only to the educated and specialised workforce. These MNCs aimed at achieving higher
output levels by employing better technology rather than generating greater employment opportunities. Thus, employment
generated in the country does not commensurate with the growth of GDP in India.

Q18 :
Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in
India? How?

Answer :

Economic growth implies growth in the GDP, i.e. growth in the aggregate output produced during an accounting period within the
domestic territory of an economy. The increased output level is achieved by generating more employment opportunities and through
employing better technology. During the recent past, India has witnessed jobless economic growth that raised the aggregate output
level without the proportionate rise in the employment opportunities and, consequently, unemployment continued to exist. The
reason is that the rise in GDP is caused by employing modern and improved technology that substituted labour for machines. This
failed to generate new employment opportunities in the industrial and the tertiary sectors. Thus, the industrial and the tertiary sectors
failed to absorb the excess labour from the agricultural sector. As a result, disguised unemployment in the agricultural sector
continued along with low levels of productivity and massive poverty. In addition to this, MNCs that played an important role in India's
economic growth provided employment only to the educated and specialised workforce. These MNCs aimed at achieving higher
output levels by employing better technology rather than generating greater employment opportunities. Thus, employment
generated in the country does not commensurate with the growth of GDP in India.

Q19 :
Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he unemployed? Why?
What kind of jobs could persons like Victor is doing?

Answer :

Yes, Victor is an unemployed worker. He works for two hours a day but a major portion of the day he is looking for work and is
unemployed. This implies that he is an underemployed worker. The situation of underemployment refers to a situation in which a
person gets work for lesser time than the time he actually can and wants to work. According to the National Sample Survey
Statistics, a person who is employed for less than 28 hours in a week is called underemployed. Victor could do jobs that are part
time in nature like dropping news papers, working in a restaurant, delivering couriers, bank tellers, etc.

Q20 :
You are residing in a village. If you are asked to advice the village panchayat, what kinds of activities would you suggest
for the improvement of your village which would also generate employment.

Answer :

The following are the suggestions that can generate employment opportunities in village:

i. Increase Production: It is of prime importance to increase production in the agricultural and industrial sectors in order to increase
employment. For this purpose, small scale and cottage industries should be promoted. This will not only generate new employment
opportunities but also assist the industrial sector, as the production of the small scale and cottage industries act as subsidiaries to
the industrial sector.

ii. Increase Productivity: The demand and productivity for labour are directly related to each other. The higher productivity
generates higher profits that in turn implies higher investment and generates higher demand for labour. Rural workers should be
imparted technical knowledge and modern know-how that will not only increase their productivity but also enhance their acceptability
of modernisation.

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iii. Control over Population: Population explosion is one of the important concerns for India. It hinders economic growth prospects.
The rising population leads to the rise in unemployment and, therefore, poverty. Thus, rural people should be made aware of various
birth control measures and also the benefits associated with family planning and nuclear-family.

iv. Creating Non-agricultural Employment: India being an agrarian economy employs a major proportion of workforce in the
agricultural sector. The development of this sector is still a far cry and, consequently, suffers from disguised unemployment.
Moreover, as agriculture is a seasonal occupation, so, many farmers remain unemployed for three to four months in a year. Thus, it
is necessary to engage these people in non-agricultural sectors for the phase they are off from cultivation. Creation of non-
agricultural job like pottery, handicrafts, not only reduces disguised unemployment but also contributes to enhanced income to the
farmers in the off-season, which could be invested in the farm to improve farm productivity and farm products.

v. Easy Credit and Finance: Often, the rural people find it difficult to access finance due to the lack of sufficient financial institutions
in the rural areas. Even if the finance or the credit is available, then this is provided at higher lending rates. The lack of credit acts as
a bottleneck for the rural growth. Thus, financial institutions and banks should be set up to provide easy credit to the rural people.

vi. Education and Health Facilities: Rural areas have always lagged behind in education and health care facilities. This not only
impedes their productivity but also reduces their life expectancy and quality of standard of living. Along with primary and secondary
schools, night schools for adults, imparting technical education and technical know-how, proper sanitation and hospitals should be
established in the rural areas.

Q21 :
Who is a casual wage labourer?

Answer :

Casual workers refer to those workers who do not work throughout the year. They only work for few months. Casual workers are not
hired by employers on a regular basis. They do not enjoy social security benefits like provident fund, gratuity, etc. They are generally
unskilled workers. For example: workers working at a construction site.

Q22 :
How will you know whether a worker is working in the informal sector?

Answer :

The following features help to recognise a worker working in the informal sector:

i. A worker working in an enterprise (other than the public sector establishments and the private sector establishments) hiring 10 or
less than 10 workers.

ii. This sector includes millions of farmers, agricultural labourers, owners of small enterprises and self employed. These sections of
people are not hired worker.

iii. A worker working in informal sector does not enjoy social security benefits such as provident fund, gratuity, pension, etc.

iv. The economic interest of the workers working in the informal sector is not protected by any Labour Laws other than Minimum
Wages Act. Therefore, workers in the informal sector are highly exposed to the uncertainties of the market and have low bargaining
power.

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 Chapter :Mechanical Properties Of Fluids Click here to view animated video
 Chapter :Laws Of Motion Click here to view animated video
 Chapter :Kinetic Theory Of Gases Click here to view animated video
 Chapter :Gravitation Click here to view animated video

ANIMATED VIDEOS CLASS 12


(SUBJECT: INDIAN ECONOMIC DEVELOPMENT)

 Chapter Indian Economy on the Eve Click here to view animated video
of Independence
 Chapter Indian Economy 1950 1990 Click here to view animated video
Formation in India
 Chapter Development Human Capital Click here to view animated video
 Chapter Environment And Sustainable Click here to view animated video
Development
 Chapter Employment Growth, Informalization Click here to view animated video
And Other Issues
 Chapter Comparative Development Experiences Click here to view animated video
 Chapter Infrastructure Click here to view animated video
 Chapter Liberalization, Privatization Click here to view animated video
or Globalization an Appraisal
 Chapter Poverty Click here to view animated video
 Chapter Rural Development Click here to view animated video
ANIMATED VIDEOS CLASS 11
(SUBJECT: Mathematics in Hindi)

 Chapter :Sequence And Series (Deleted 2023-24) Click here to view animated video
 Chapter :Circle Click here to view animated video
 Chapter :Bionomial theorem Click here to view animated video
 Chapter :Relation And Function Click here to view animated video
 Chapter :Linear Inequalities Click here to view animated video
 Chapter :Quadratic Equation Click here to view animated video
 Chapter :3d Geometry (Deleted 2023-24) Click here to view animated video
 Chapter :Statistics Click here to view animated video
 Chapter :Complex Number Click here to view animated video
 Chapter :Straight Line I Click here to view animated video
 Chapter :Conic Sections Click here to view animated video
 Chapter :Limits And Derivatives Click here to view animated video
 Chapter :Straight Line II Click here to view animated video
 Chapter :Three Dimensional Geometry Click here to view animated video
 Chapter :Linear Equation In One Variable (Deleted 2023-24) Click here to view animated video

 Chapter :Trigonometric Function Click here to view animated video


 Chapter :Mathematical Reasoning (Deleted 2023-24) Click here to view animated video
 Chapter :Vector Algebra(Deleted 2023-24) Click here to view animated video
 Chapter :Permutation And Combination Click here to view animated video
 Chapter :Mathematical Introduction(Deleted 2023-24) Click here to view animated video
 Chapter :Principle Of Mathematical Induction (Deleted 2023-24) Click here to view animated video
 Chapter : Probability Click here to view animated video
 Chapter :Sequence And Series Click here to view animated video
 Chapter :Sets I Click here to view animated video
 Chapter :Sets II Click here to view animated video
 Chapter :Sets III Click here to view animated video
ANIMATED VIDEOS CLASS 11
(SUBJECT: BIOLOGY IN HINDI)
 Chapter :Cell The Unit Of Life Click here to view animated video
 Chapter :Animal Kingdom Click here to view animated video
 Chapter :Mineral Nutrition(Deleted 2023-24) Click here to view animated video
 Chapter :Cell Cycle And Cell Division Click here to view animated video
 Chapter :Anatomy Of Flowering Plants I Click here to view animated video
 Chapter :Respiration In Plants Click here to view animated video
 Chapter :Plant Kingdom II Click here to view animated video
 Chapter :Plant Growth And Development Click here to view animated video
 Chapter :Photosynthesis In Higher Plants Click here to view animated video
 Chapter :Nervous Control And Coordination(Deleted 2023-24) Click here to view animated video

 Chapter :Morphology Of Flowering Plants Click here to view animated video


 Chapter :Morphology Of Flowering Plants Root (Deleted 2023-24) Click here to view animated video
 Chapter :Morphology Of Flowering Plants Leaves(Deleted 2023-24) Click here to view animated video

 Chapter :Transport Of Mineral Nutrients In Plant (Deleted 2023-24) Click here to view animated video

 Chapter :Morphology Of Flowering Plants Inflorescence (Deleted 2023-24) Click here to view animated video
 Chapter :Transport In Plants (Deleted 2023-24) Click here to view animated video
 Chapter :Morphology Of Flowering Plants Fruits Click here to view animated video
 Chapter :The Living Word (Deleted 2023-24) Click here to view animated video
 Chapter :Morphology Of Flowering Plants Flowers (Deleted 2023-24) Click here to view animated video
Chapter :The Living World I Click here to view animated video
 Chapter :Long Distance Transport Of Water (Deleted 2023-24) Click here to view animated video
Chapter : Structural Organisation in Animals Click here to view animated video
 Chapter :Locomotion And Movement Click here to view animated video
 Chapter :Structural Organization In Animals II (Deleted 2023-24) Click here to view animated video
Chapter :Excretory Products And Their Elimination Click here to view animated video
 Chapter :Digestion And Absorption (Deleted 2023-24) Click here to view animated video
 Chapter :Chemical Coordination And Integration Click here to view animated video
 Chapter :Cell The Unit Of Life IV Click here to view animated video
 Chapter :Cell The Unit Of Life III Click here to view animated video
 Chapter :Animal Kingdom II Click here to view animated video
 Chapter :Animal Kingdom III Click here to view animated video
 Chapter :Biological Classification I Click here to view animated video
 Chapter :Biological Classification II Click here to view animated video
 Chapter :Biological Classification III Click here to view animated video
 Chapter : Biomolecules Click here to view animated video
 Chapter :Body Fluids A Circulation Click here to view animated video
 Chapter :Breathing Exchange Of Gases Click here to view animated video
 Chapter :Cell The Unit Of Life I Click here to view animated video
 Chapter :Cell The Unit Of Life II Click here to view animated video

ANIMATED VIDEOS CLASS 11


(SUBJECT:PHYSICS IN HINDI)
 Chapter :Work, Power And Energy Click here to view animated video
 Chapter :Waves Click here to view animated video
 Chapter :Units And Measurement Click here to view animated video
 Chapter :Thermodynamics Click here to view animated video
 Chapter :Thermal Properties Of Matter Click here to view animated video
 Chapter :System Of Particles And Rational Motion Click here to view animated video
 Chapter :Physics World (Deleted 2023-24) Click here to view animated video
 Chapter :Oscillations Click here to view animated video
 Chapter :Motion In A Straight Line Click here to view animated video
 Chapter :Motion In A Plane Click here to view animated video
 Chapter :Mechanical Properties Of Solids Click here to view animated video
 Chapter :Mechanical Properties Of Fluids Click here to view animated video
 Chapter :Laws Of Motion Click here to view animated video
 Chapter :Kinetic Theory Of Gases Click here to view animated video
 Chapter :Gravitation Click here to view animated video

ANIMATED VIDEOS CLASS 11


(SUBJECT: CHEMISTRY IN HINDI)

 Chapter :Organic Chemistry III Click here to view animated video


 Chapter :Organic Chemistry II Click here to view animated video
 Chapter :Organic Chemistry I Click here to view animated video
 Chapter :Hydrogen II (Deleted 2023-24) Click here to view animated video
 Chapter :Thermodynamics Click here to view animated video
 Chapter :Hydrogen I (Deleted 2023-24) Click here to view animated video
 Chapter :The S Block Elements (Deleted 2023-24) Click here to view animated video
 Chapter :Hydrocarbons III Click here to view animated video
 Chapter :Hydrocarbons II Click here to view animated video
 Chapter :Structure Of Atoms Click here to view animated video
 Chapter :Hydrocarbons I Click here to view animated video
 Chapter :Structure Of Atoms I Click here to view animated video
 Chapter :Equilibrium Click here to view animated video
 Chapter :States Of Matter (Deleted 2023-24) Click here to view animated video
 Chapter :Equilibrium I Click here to view animated video
 Chapter :Some Basic Concept of Chemistry II Click here to view animated video
 Chapter :Some Basic Concept of Chemistry I Click here to view animated video
 Chapter :Classification Of Elements In And Periodicity Properties Click here to view animated video
 Chapter :Redox Reactions Click here to view animated video
 Chapter :Chemical Bonding Molecular Structure Click here to view animated video
 Chapter :Chemical Bonding Molecular Structure I Click here to view animated video
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