Q.1 How is the tertiary sector different from other sectors?

Illustrate with
a few examples.
Ans. Tertiary sector is also known as service sector. It includes trade,
transport, communication and other services provided to the people
employed in primary and secondary sectors. These activities do not
produce goods but they support the production process. They also
help in the development of the primary and secondary sectors. These
services increase the efficiency of production process and also provide
the necessary information and knowledge. Tertiary occupations have
become a synonym for developed countries.
Tertiary sector is different from primary sector, which includes all
those economic activities which are connected with extraction and
production of natural resources, for example, agriculture, fishery,
mining, etc.
Tertiary sector is also different from secondary sector which includes
all activities which are concerned with the processing of the output
obtained from the primary sector into finished goods in a
manufacturing units, for example converting sugarcane into sugar.

Q.2 What do you understand by disguised unemployment? Explain with

an example each from the urban and rural areas.
Ans. Disguised unemployment is a kind of unemployment in which some
people look like being employed but are actually not employed fully.
This situation is also known as hidden unemployment. It refers to a
situation wherein more people are engaged in a work than required.
When the surplus workers from a rural area engaged in the activity or
the work, are removed then also the production remains unaffected.

In urban areas, there are many people who are employed. Their jobs
do not suit their qualifications. Disguised unemployment can be seen
in the service sector where painters, repair person, plumber, etc. are
doing odd jobs. Many of them do not find work on a daily basis.
Taking an example, there is a shop which require only two persons
for handling it, but it there are three servants and one owner to look
after the shop, then this shows that two servants are in the situation
of disguised unemployment.
 In rural areas, disguised unemployment can be seen in the
agricultural sector. Most often, all the members of a family are
engaged on the same piece of land. If a few members are withdrawn,
there will no effect on the production. So, the members who are
withdrawn are in the situation of disguised unemployment.

Q.3 Distinguish between open unemployment and disguised

unemployment.
Open unemployment Disguised unemployment
When a person has no job in Sometimes, when people are
hand and does not earn apparently working but all of
anything at all, it is said to be a them are made to work less
situation of open than their potentials. it is said to
unemployment. be a situation of disguised
unemployment.
It is clearly visible. It is hidden
This type of unemployment is This type of unemployment is
generally found in the industrial generally found in unorganised
sector. For example, when sector, where either the work is
labourers of a mill are laid off constantly not available or more
due to its closure. than required people are
employed for a work.

Q. 4 Service sector in India employs two different kinds of people. Who

are these?
Ans. Service sector in India employs two different kinds of people as
mentioned below:-
(a) There are highly-skilled and educated workers such as teachers
und doctors.
(b) On the other hand, a large number of workers such as small
shopkeepers and repair services who barely manage to earn a Living.

Q.5 Workers are exploited in the unorganised sector. Do you agree with
this view? Give reasons in support of your answer.
Ans. Yes, we agree with the view that workers are exploited in the
unorganised sector. The following points support my view.
 a) There is no job security. People can be asked to leave anytime
without any reason.
b) No proper working conditions are provided to them.
c) Rules and regulations are not followed.
d) A Jobs here are low-paid and often not regular. There are no
chances of promotion.
e) There is no provision for, provident fund, gratuity, paid leaves
overtime, holidays, etc.
f) The working hours are odd. There are no fixed working hours.
Sometimes, workers work for 10-12 hours straight.

Q.6 How are the activities in the economy classified on the basis of
employment conditions?
Ans. On the basis of employment conditions the activities in the economy
are classified into the following.
(a) Organised sector (b) Unorganised sector
(a)Organised sector: In this sector, the terms of employment is
regular. The organisation are registered by the government and one
has to follow the rules and regulations, which are given in the various
laws. The workers enjoy the security of employment in the organised
sector.
(b) Unorganised sector: The small and scattered units, which are
mostly outside the control of the government, come under the
unorganised sector. Though they do have rules and regulations, but
these are not followed. Workers in the unorganised sector do not
enjoy security of employment.

Q.7 Compare the employment conditions prevailing in the organised and

unorganised sectors.
Ans. Organised sector
Workers have job security.
Workers get regular monthly
salary.
Rules and regulations are
followed here.
Unorganised sector
Workers do not have job
security.
Workers are not getting regular
monthly salary.
Rules and regulations are not
followed here.
 Workers get benefits of
provident fund, gratuity,
pension, medical allowance etc.
Working hours are fixed here
and they might get overtime
wages
It is called the organised sector
because it has Some formal
processes and procedures
Working conditions are
favourable.
Workers do not get such
benefits.
Working hours are not fixed
here and sometimes they work
for 10-12 hours straight.
No such formal processes and
procedures are followed.
Working conditions are not
favourable.

Q.8 Write a short note on MGNREGA ?

Ans. MAHATMA GANDHI NATIONAL RUURAL EMPLOYMENT GUARANTEE
ACT 2005 ,
It is an Indian labour law and social security measures that aims to
guarantee the right to work. The main objective of this act is to
enhancing livelihood security in the rural areas by providing
guaranteed 100 days of employment in a year to the person who are
able to, and are in need of a work.
If government fails in its duty to provide employment, it will give
unemployment allowances to the people.
The types of work that would in future help to increase the
production from land will be given in preference.

Q.9 Compare the economic activities and functions of private and public
sector?
Public sector Private sector
The main aim of this sector is The main aim of this sector is to
public welfare. earn maximum profits.
It is controlled and managed by It is controlled and managed by
the government. an individual or group of
individuals.
The sector provides basic The sector provides consumer
facilities like health, education, goods to the people.
food and security to the people.
 Railways, Post Office, BSNL,
AIIMS, etc. are few examples
The area of work are : Army,
Banking, Police, Education,
Health, Insurance, Electricity, etc
TISCO, Reliance, Adani Group,
etc. are few examples.
Area like Information
Technology, Pharmaceuticals,
Consumer Goods, Heavy Goods,
etc.

Q.10 How public sector contributes to the economic development of a

nation?
Ans. In the following ways Public sector contributes to the economic
development of a nation:

1) It promotes rapid economic development through creation and

expansion of infrastructure.
2) It creates employment opportunities.
3) It generates financial resources for development.
4) It ensures equality of income, wealth and thus, a balanced
regional development.
5) It encourages development of small, medium and cottage
industries.
6) It ensures easy availability of goods at moderate rates.
7) Contributes to community development, i.e., to the Human
Development Index (HDI) via health and educational services.