SECTORS OF INDIAN ECONOMY

                                                      CHAPTER-2  (Class-X)

Exercise Questions:-
1. Ans (i) has not  (iii) organized  (v) natural
(ii) tertiary (iv) large (vi) interdependent

2.Ans.(a)► (iii) ownership of enterprises            (c► (ii) all final goods and services
(b► (i) primary                                                     (d► (iii) between 50 per cent to 60 per cent

3.Ans 1. (d), 2. (c), 3. (e), 4. (a), 5. (b)

4. Find the odd one out and say why.
Answer (i) Tourist guide
He is appointed by the government, while dhobi, tailor and potter belong to the private sector.
(ii) Vegetable vendor
His is the only profession that does not require a formal education.
(iii) Cobbler
The rest are workers in the public sector, while his profession is part of the private sector.
(iv) SAHARA Airlines
It is a private enterprise, while the rest are government undertakings.

5.  Answer: Organised        2. Unorganised    3. Unorganised 4. 50
The percentage of workers in the unorganised sector in this city is 70%.

6. The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development. 

7. Ans For each of the sectors that we came across in this chapter, one should focus on employment and GDP because these determine the size of a country's economy. A focus on employment and GDP helps determine two important things- per capita income and productivity. Hence, in each of the three sectors, employment rate and status as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

8.Ans.Yes, the other issues which should be examined are -
→ Balanced regional development
→ Equality in income and wealth among the people of the country.

→ How to eradicate poverty
→ Modernization of technology
→ Self-reliance of the country
→ How to achieve surplus food production in the country.    

9. Ans The tertiary sector different from other two sectors. This is because other two sectors produce goods but, this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as service sector.  

10. AnsDisguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment.In such a situation more people are engaged in a work than required.

For example:

→ In rural areas, this type of unemployment is generally found in agricultural sector like - in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are with drawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
→ In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

11. Ans     Open Unemployment	Disguised unemployment
When a country’s labour force do not get opportunities for adequate employment, this situation is called open unemployment.	This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required.
This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.	This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

12.Ans No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades. In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

13.Ans.The service sector in India employs the following two different kinds of people. They are:
→ The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
→ The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.

14.Ans.Yes, workers are exploited in the unorganized sector. This would be clear from the following points:
→ There is no fixed number of working hours. The workers normally work 10 - 12 hours without paid overtime.
→ They do not get other allowances apart from the daily wages.

→ Government rules and regulations to protect the labourers are not followed there.
→ There is no job security.
→ Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
→ Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages. 

15.Ans.On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors.
→ Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.
→ Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.

16.Ans.The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

17.Ans.The objective of implementing the NREGA 2005 are:
→ To increase the income and employment of people.
→ Every state/region can develop tourism, regional craft, IT etc. for additional employment.
→ The central government made a law implementing the right to work in 200 districts.
→ NREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

19.Ans	Well-managed organisation	Badly-managed organisation
Public sector	Delhi Metro Rail Corporation	Air India
Private sector	Reliance Mobile	Satyam

20. Ans. A few examples of public sector activities are provision of water, electricity and some modes of transport. The government has taken these up because water and power are needed by everyone. If the work of providing electricity and water is left to private enterprises, the latter

might exploit this opportunity and sell these at rates which the masses cannot afford. Hence, to ensure that basic amenities like water and power are available for all, the government supplies these at low and affordable rates.

21. Ans.In the following ways Public sector contributes to the economic development of a nation:
→ It promotes rapid economic development through creation and expansion of infrastructure.
→ It creates employment opportunities.

→ It generates financial resources for development.
→ It is ensuring equality of income, wealth and thus, a balanced regional development.
→ It encourages development of small, medium and cottage industries.
→ It ensures easy availability of goods at moderate rates.
→ Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services. 

22. Ans. The workers in the unorganised sector need protection:→ Wages: Labourers who are employed as repair person, vendor etc. do not have fixed income. They nearly manage to earn their living. They are not employed all through the year.
→ Safety: Workers in unorganized sector are not provided with safe drinking water or clean environment. Eg., Working in mining, chemical industries is hazardous.
→ Health: Leave not granted in case of sickness. Medical facilities are not offered, Eg., Construction workers.

23.  Ans -	Organised Sector	Unorganised Sector	Total
No. of workers	4,00,000	11,00,000	15,00,000
Income (Rs)	32,000 million	28,000 million	60,000 million

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, government should introduce some incentives so that more industries could be opened up in the organized sector.

         

24. Ans (i) In 1950,primary sector = 57.97%, secondary sector = 13.77%, tertiary sector = 28.26%
In 2000,
(ii) primary sector = 27.33%, secondary sector = 24.37%, tertiary sector = 48.30%

(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has almost doubled, while that of the primary sector has almost halved. The secondary sector has grown by about 10% in the last five years.

                                                        Chapter-1

                                         FRENCH REVOLUTION                                           Page-1

Q.1) Explain the following terms:-

a) Guillotine

Ans) The guillotine is a device consisting of two poles and a blade with which a person

is beheaded. It was named after Dr .Guillotine who invented it.

b) Subsistence crisis

Ans) the population of France rose from about 23 million in 1715 to 2 8million in

1789.This led to a rapid increase in the demand for food grains. Production of grains

could not keep pace with the demand. So the price of bread which was the staple diet of

the majority rose rapidly. Most workers were employed as labourers in workshops

whose owners fixed their wages. But wages did not keep pace with the rise in prices so

the gap between poor and rich widened .Things became worse whenever drought or

hail reduced the harvest. This led to subsistence crisis:- an extreme situation where the basic means of livelihood is endangered.

c) Declaration of the rights of man and citizen

Ans) The Constitution of 1791 began with the declaration of the rights of man and

citizen. Rights such as the right to life, freedom of speech, freedom of opinion, equality

before the law, were established as 'natural and inalienable' rights, that is, they

belonged to each human being by birth and couldn’t be taken away. it was the duty of

the state to protect each citizen's natural rights.

d) Directory

Ans) The fall of Jacobin govt. allowed the wealthier middle classes to seize power. A

new constitution was introduced which denied the vote to non prosperous sections of

thesociety.it provided for two elected legislative councils. These then appointed a

directory an executive made up of five members. This was meant as a safeguard

against the concentration of power in a one man executive as under the Jacobins.

Q.2) Explain the ideas put forward by the following philosophers in their books?

Ans) (a) Jean Jacques Rousseau- Rousseau proposed a form of government based on a social contract between people and their representatives in his book 'The Social Contract'.

(b) Montesquieu-in the 'Spirit of the laws, Montesquieu proposed a division of power

within the govt between the legislative, the executive and the judiciary. This model of

government was put into force in the USA after the thirteen colonies declared their

independence from Britain.

(C) John Locke- In his 'Two Treatises of government', Locke sought to refute the

doctrine of the divine and absolute right of the monarch.

Q-3) What were the taxes that the middle class had to pay during the Old Regime?

Ans) The two types of taxes were:-

1. Tithes: - A tax levied by the church, comprising one-tenth of the agricultural produce.

2. Taille: - All the members of third estate had to pay taxes to the state. These included

a direct tax, called Taille,and a number of indirect taxes which were levied on articles of

everyday consumption like tobacco or salt.

Q.4) Write a short note on 'Reign of Terror'?

Ans) The period from 1793-94 is referred to as the Reign of Terror. Robespierre

followed a policy of severe control and punishment.

All those whom he saw being the 'enemies' of the republic-ex nobles and clergy,

members of his own party who did not agree with his methods-were arrested,

imprisoned and then tried by a revolutionary tribunal. If the court found them guilty they were guillotined.

The govt. issued laws placing a maximum ceiling on wages and prices. Meat and Bread

were rationed.

Peasants were forced to transport their grain to the cities and sell it at the prices fixed

by the government. The use of more expensive white flour was forbidden ,all citizens had to eat plain d'egalite (equality bread). Instead of Monsieur(sir) and Madame(madam)all French men

and women were henceforth citoyen and citoyenne. Churches were shut down and their buildings were converted into barracks or offices.

Q.5) Describe the legacy of French Revolution for the people of the world during 19th

and 20th century?

Ans) The ideas of liberty and democratic rights were the most important legacy of French revolution. These spread from France to the rest of Europe during the

nineteenth century, where feudal systems were abolished. Colonised people reworked the idea of freedom from bondage into their movements to create a sovereign nation state.                                                              

Q.6) Who were allowed to vote for the formation of the National Assembly?

Ans)Only men above 25years of age who paid taxes equal to at least 3 days of a

labourers wage were given the status of active citizens, that is they were entitled to vote. The

remaining men and women were classified as passive citizens. The active citizens

voted for a group of electors ,who in turn choose the assembly.

To qualify as an elector and then as a member of the assembly, a man had to belong to

the highest bracket of tax payers.

Q.7) What was the immediate cause of French Revolution?

Ans) The population of France rose from about 23million in 1715 to 28million in

1789.This led to a rapid increase in the demand for food grains. Products of grains

could not keep pace with the demand, so the price of bread which was a staple diet of the

majority rose rapidly. Most workers were employed as labourers in workshops whose

owner fixed their wages.

But wages did not keep pace with the rise in prices .So the gap between rich and poor

widened. Things became poorer whenever drought or hail reduced the harvest. This led to subsistence crisis.

Q. 8) What were the main objectives of the constitution of 1791 of France?

Ans) The main objectives of the constitution of 1791 were:-

1.It vested the powers to make laws in the National Assembly which was indirectly

elected. That is, citizens voted for a group of electors who chose the assembly, only

ACTIVE CITIZENS:-Men above 25 years of age who paid taxes equal to at least 3 days

of a labourers wage could vote. The others PASSIVE CITIZENS-Remaining men and all

women couldn’t vote.

2. The constitution began with a Declaration of rights Man and Citizens. Rights such as

right to life, freedom of speech, freedom of opinion, equality before the law, were

established as natural and inalienable right, that is , they belonged to each human being

by birth and couldn't be taken away. It was the duty of state to protect each citizen's

natural rights.

Q.9) Describe the causes leading to the French Revolution?                                                                                Ans) POLITICAL CAUSE:- =>In 1774,Louis XVI of the Bourbourn family of kings

ascended the throne of France. Upon his accession he found an empty treasury. Long

years of war had drained the financial resources of France.

=) Added to this was the cost of maintaining an extravagant court at the immense palace of Versailles.                                                                                                                                                  =)Under Louis XVI ,France helped the 13 American colonies to gain independence from

Britain. The war added more than a billion livers to a debt that had already risen to

2billion lives.

=) To meet its regular expenses-cost of maintaining an army, the court, running

government offices, universities, the state was forced to increase the taxes.

SOCIAL CAUSES:-

=) French society in the 18th century was divided into three estates, and only the

members of the third estate had to pay taxes.

=)In France about 60%of land was owned by nobles, the church and other rich of the

members third estate while very little land was owned by peasants who made up about

90%of the population.

=) The members of the first two estates i.e.: the clergy and nobility, enjoyed certain

privileges by birth like exemption from paying taxes to the state.

ECONOMIC CAUSES:-

=)Only the members of the third estate paid taxes. The church extracted its share of

taxes called Tithes from the peasants comprising one-tenth of the agriculture produced. Also,

all members of the third estate had to pay taxes to the state. These included a direct tax

called Taille, a number of indirect taxes levied on articles of everyday consumption like

salt or tobacco.

=)The members of the 1st two estates i.e.-the clergy and nobility enjoyed certain

privileges by birth. The most important of these was exemption from paying tax to the

state. The nobles further enjoyed feudal privileges including feudal dues, which they

extracted from peasants. Peasants were obliged to render services to the lord-work in

his house, fields-serve in army.

GROWING MIDDLE CLASS AND PHILOSOPHERS:-

=)The 18th century witnessed the emergence of social groups termed middle class, who

earned their wealth by expanding their overseas trade and manufacturing goods.

=) The third estate included professionals-lawyers, or administrative officials .All of

these were educated and believed that no group in the society should be privileged by

birth.

=)There were ideas put forward by philosophers .In his' Two Treaties of Government'

John Locke sought to refute the doctrine of divine and absolute right of monarch.

=) Jean Jacques Rousseau carried the idea forward, proposing a form of govt. based on

social contract between people and their representatives.

=) In 'The Spirit of the Laws' Montesquieu proposed a division of power within the

government between legislative, executive and judiciary.

IMMEDIATE CAUSE:-

=)The population of France rose from 23million in 1715 to 28million in 1789.This led to

a rapid increase in demand for food grains .Production of grains couldn't keep pace with

demand. So the price of bread, the staple diet of majority rose rapidly.

=) Most workers were employed as labourers in workshops whose owners fixed their

wages. But wages did not keep pace with the rise in prices. =) So the gap between the poor and rich widened. Things became worse whenever a drought or hail occurred which reduce the harvest. This led to subsistence crisis.

Q.10) Describe the role of middle class in the French Revolution?

Ans) The 18th century witnessed the emergence of social group termed the middle

class,who earned their wealth by expanding overseas trade and from manufacture of

goods like woolen and silk textiles that were either imported or brought by the richer

members of the society.

The third estate also included professionals such as lawyers, administrative officials,

merchants and manufacturers. They were educated and believed that no group in

society should be privileged by birth. Rather, a person's social position must depend upon high merit.

Q.11) Who were Mirabeau and Abbe Sieyes?

Ans)=)The representatives of the third estate declared themselves a National Assembly

and swore not to disperse till they have drafted a constitution for France that would limit

the powers of the monarch. They were led by Mirabeau and Abbe' Sieyes.

=) Mirabeau was born in a noble family but was convinced of the need to do away with a

society of feudal privilege. He bought out a journal and delivered powerful speeches to

the crowd assembled Versailles.

=)Abbe Sieyes, originally a priest, wrote an influential pamphlet called' What is the Third

Estate'.

Q.12) What is Marseillaise?

Ans)=) The National Assembly voted in April 1792 to declare war against Prussia and

Austria. Thousands of volunteers thronged from the provinces to join the army.

They saw this as a war of the people against kings and aristocrats all over Europe.

=) Among the patriotic songs the song was the Marseillaise composed by Roget de

L'Isle. It was sung for the first time by volunteers from Marseilles as they marched into

Paris.

=)Marseillaise is now the national anthem of France.

Q.13) Desribe the role of women in the French Revolution?

Ans)=)In order to discuss and voice their interests women started their own clubs and

newspapers.

=) About sixty women's clubs came up in different French cities. The society of

Revolutionary and republican women was the most famous of them.

=) One of their main demands was that women enjoy the some political rights as men.

Women were disappointed that the constitution of 1791 reduced them to passive citizens.

=) They demanded the right to vote, to be elected to Assembly and to hold political

office. Only then, they felt, would their interests be represented in ,the new govt.

=) Women's movements for voting rights and equal wages continued through the next

200 years. It was finally in 1946 that women in France won the right to vote.

Q.14) What did the third estate women do for their living? Briefly describe the     laws introduced to improve their lives?

Ans) =)Most women of the third estate had to work for living. They worked as

seamstresses, old flowers, fruits &vegetables in market or were employed as domestic

servants in the houses of prosperous servants.

=) Most women didn't have access to education, job training. Only wealthier members

sent their daughters to convent after which they were married.

=) Working women also had to care for their families, cook, fetch water, queue up for

bread. Their wages were lower that of men.

=) With the creation of state schools. Schooling was , made compulsory for all the girls.

=) Their fathers could no longer force them into marriage which was made a contract

entered into freely and registered under civil laws.

=) Divorce was legal. Women could be trained for jobs, become artists or run small business.

Q.15) Name one important law that came into effect soon after the storming of Bastille in the summer of 1789?

Ans ) The Abolition of censorship.

Q.16 ) How would you explain the rise of Napoleon Bonaparte?

Ans) In 1804, Napoleon Bonaparte crowned himself as an emperor of France. He set

out to conquer the neighbouring European countries, dispossessing dynasties & creating

kingdoms where he placed members of his family.

=) He saw his role as a moderniser of Europe. He introduced many laws such as the

protection of private property & a uniform system of weights and measures provided by

decimal system.

=) Initially many saw him as a liberator but soon his armies came to be viewed as an

invading force.

=) He was finally defeated at Waterloo in 1815.Many of his measures had an impact on

people long after Napoleon had left