Chapter 2 Flashcards
(18 cards)
What are economic activities?
All activities that give an income in return
Example: people going for work in factories, banks, schools, etc.
How can economic activities be classified?
Based on the nature of work into different sectors
What is the primary sector?
Goods produced by exploiting natural resources, also known as agriculture and related sector
Example: cotton which is a natural product.
What does the secondary sector involve?
OR
What is the secondary sector?
Transformation of one good into another, primarily manufacturing
Example: Transformation of sugarcane into sugar.
What is the tertiary sector?
All production units producing services that help in the development of primary and secondary sectors, also known as service sector
Example: Services provided by doctors, teachers, lawyers, etc.
What does the interdependence of the three sectors imply?
Each sector relies on the others for resources, products, and services
How is GDP calculated?
By summing the value of final goods and services produced in each sector during a particular year
Why has the tertiary sector emerged as the largest sector?
It supports the development of primary and secondary sectors
What is the organized sector?
Enterprises where terms of employment are regular and registered by the government
What characterizes the unorganized sector?
Enterprises where employees have irregular working hours, no job security, and no additional benefits. Workers in this sector often get low wages.
What is the difference between public and private sectors?
Public sector is owned and managed by the government for social welfare, while private sector is owned by individuals for profit
Example: TISCO and RIL in private sector.
Define employment.
An activity from which a person earns the means of living, i.e., income in cash or in kind.
What is unemployment?
A situation where persons who are able and willing to work fail to secure work.
Define underemployment.
A situation where a worker gets work for less time than they can work.
What was the change in the share of sectors in GDP from 1973 to 2000?
Output increased significantly, but employment growth was much slower.
What can the government do to create more employment opportunities?
Provide better infrastructure such as roads, dams, and canals, and services like banks and transport.
What is the Mahatma Gandhi National Rural Employment Guarantee Programme-2005?
An act guaranteeing 100 days of employment per year for those able to work in India
Only one person per family is entitled to this benefit.
Why did the importance of the tertiary sector rise?
It provides basic services like schools, hospitals, banks, and transport.
Growth in agriculture and industry increases the need for services.
With higher incomes, people demand more services.
New services like IT, communication, and online platforms are expanding.
