3. PRODUCTION AND EMPLOYMENT




I.Key Words:

1.Gross Domestic Product: The value of all the final goods and services produced in a country during a year.
2.Final goods: Which goods goods are used for the final consumption 
3.Employment shifts: Change employment from one sector to another sector.
4.Organised sector: Those enterprises or places of work registered by the government and have to follow its rules and regulations. The terms of employment is regular and assured .
5. Unorganised sector: An unorganised sector is characterised by small and scattered units, which are largely outside the control of the government.

II.Improve Your Learning:

1.Do you think the classification of economic activities into primary, secondary and services sectors is useful? Explain how?

2.For each of the sectors that we came across in this chapter, why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

3.How is the service sector different from other sectors? Illustrate with a few examples.
A.
1.The total economic activities are divided into three sectors primary, secondary and tertiary or service sector.
2.Services sector meets,the mental and physical needs of the people.
3.Agriculture and Industrial sectors i.e. primary and secondary sectors deals with the production of the goods.

4.Service sector provide the services of both primary and secondary and are dependent on service sector.

5.It is interesting to note that the primary and secondary sectors work along with service sector but service sector does not need any of their services.

4.What do you understand by under employment ? Explain with one example each from the urban and rural areas.
A.
This is the situation where people are apparently working, but all of them are made to work less than their potential. 
Under-employment in Urban areas:
1.Casual workers who are in the search of daily employment. These workers are employed as painters, plumbers, repair persons, also doing other odd jobs. 
2.They are skilled labourers who do not work as their potential. So, they are under- employed. 
Underemployment in rural areas:  
1.Small farmers in the villages who are unirrigated land.
2.All the members of the family work on this  plot throughout the year.
3.Everyone is working but no one is fully  employed which is a serious problem in rural.

5.The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
A.

6.A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked are in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 6000 crores. Out of this, Rs 3200 crores was generated in the organised sector. Present this data as a table. What are the ways for generating more employment in the city?

7.Read the 4th para of page 34, i.e. “ In the past 50 years, ............. observed for developed
countries”. Is a similar pattern observed for India? Give your opinion.

III.Short Answers:






*Classify the people's activities to earn their lively hoods?
A. 
These activities are broadly categorized into 3 types:
1.Agriculture and related activities (Primary)  such as fishing, forestry, mining where nature has a dominant role in the production process.
2.Manufacturing & other industries  (Secondary) where goods are produced by people using tools or machines.
3.Services (Tertiary) activities that do not produce any good, but provide services that are required in production and other services for people.

*What is the financial year?
A. 
The period of one year starting from 1st April to 31st March next year is called a financial year in India.

*What is Gross Domestic Product (GDP)?
A.
It is the value of all final goods and services produced within a country during a particular year.

*What are the three sub-sectors of service sector?
A. 
1.Community, social and personal services.
2.Finance, insurance and real estate.
3.Trade, hotels, transport & communication.

*Why didn't the employment shift out of agriculture sector even now?
 A.
It is because of enough jobs were not created in industry and service sectors.

*What is the importance of service sector in developed countries?
A. 
1.In the past 50 years, there has been a further shift from industry to service sector for developed countries.
2.The service sector has become the most important sector in terms of total production.
3.Most of the working people have also made a shift and are now employed in the service sector.
4.Most of the production activities are those of services and not manufactured goods.

*Observe the following table and answer the questions A and B. (June 2023)
Sector
Contribution (% of total)
  Employment
Gross Domestic Product
Organised
Unorganised  
Total
8
92
100
50
50
100
A) What does the above table represent ?
A.
The given table represent the contribution of employment and Gross Domestic Product from Organised and Unorganised sectors.
B) Mention any two reasons for low employment in Organised sector.
A.
Reasons for the low Employment in Organised sector are:
• Expansion of employment opportunities in organised sector very slow.
• Use machines and technology.

*What are intermediate goods?
A. 
Those goods are not using for final consuption, which are producing final goods and services are called intermediate goods.

*What is the disguised unemployment?
A.
1.More number of the people working in  agriculture than required, but everyone may not be fully occupied.
2.Few people move out, production will not be affected.
3.This is called as disguised unemployment.

*Write any two differences between intermediate goods and final goods?
A.
Intermediate goods:-
1.These goods are used for further  production.
2.These are not used for the final consuption
3.These are not included in GDP.
    Ex: Paddy, Rice
Final goods:-
1.These are not used for further production.
2.These are used for final consumption.
3.These are included in GDP.
    Ex: Idly, dosa, Car, T.V

*What is under employment? (OR)
*What do you mean by under-employment? Give one example. (2022 May)
 A.
1.The people are apparently working but all of them are made to  work less than their  potential.
2.This kind of underemployment is hidden.
Example: Painters, plumbers, repair persons and other doing odd jobs.

*Give examples for labourers working in unorganized sector in rural areas.
A. 
Landless agricultural labourers, small and marginal farmers, share croppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths).

*Give examples for urban labourers working in unorganized sector.
A. 
Workers in small-scale industry, casual workers in construction, trade and transport etc. and those who work as street vendors, head load workers, garment makers, rag pickers etc.

*Describe any three problems faced by workers in unorganized sector?
A.
1.This sector not follows government rules  and regulations.
2.There is no regular Employment.
3.They have no job security.
4.Their wages are very less. 
 
*What are activities in transport and communication sector.
A. 
Services both in the public and private such as transportation services like roadways, railways, waterways and air ways and communication services like telephone, mobile phone, DTH and internet.

*Give examples for Community, Social and Personal services.
A.
Public Administration, Defense, Education,  Health, Veterinary activities, Media, Library, archives, museums and other cultural activities etc.

*Why are only final goods and services value counted in GDP? Explain
A. 
1.GDP is the sum of the money value of all the final goods and services produced in each sector during a particular year with in a country.
2.The value of final goods and services already includes the value of all the basic goods and intermediate goods.
*Give examples for Finance, Insurance and Real Estate Services.
A. 
Ex: Services of banks, post-offices, non-bank financial companies, Life Insurance and General Insurance Corporation and services of brokers and real estate companies etc.

*Suggest some measures to create more employment opportunities to all people.
A. 
1.To provide cheap loans to farmers and   irrigation facilities to their lands.
2.To build better roads to all areas.
3.To train many workers to work efficiently   and with machines.
4.To identify, promote and locate industries  and services in rural and semi - rural areas.
5.More Educational and health facilities  should provide.

*What are the differences between the organized sector and the unorganized sector?
A.
Organized Sector:
1.The enterprises where terms of  employment are regular.
2.These are under the control of government.
3.The labourers formal processes and  procedures come under organized sector. 
4.Workers in the organised sector enjoy  securit of employment.
5.They are expected to work only for a fixed  number of hours. If they work more, they have to be paid overtime by the employer.
6.They get paid leave, payment during  holidays.
7.The labourers get high salaries.
8.They get medical benefits under the laws.
9.Only 8% of people are employed 
Unorganized Sector:
1.Small and scattered units where is not  regular.
2.These are largely outside the control  government.
3.The labourers not get any procedures come under unorganized sector.
4.No security of employment in the  unorganised sector.
5.No fixed number of working hours and  provision for overtime.
6.No paid leave, holidays, leave due to  sickness etc.
7.The labourers get low salaries.
8.They do not get medical benefits and under the laws.
9.Only 92% people are employed.




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