sectors of indian economy Flashcards
(33 cards)
What are groups of economic activities called?
sectors
Why is the cultivation of cotton considered a primary sector activity?
When we produce
a good by exploiting natural
resources it is know as primary sector since we exploit cotton from nature it is considered as primary sector
Why are products like cotton, milk, minerals, and ores referred to as natural products?
because we directly obtain them from nature
What is the primary sector, and how does it relate to natural resource exploitation
When we produce
a good by exploiting natural
resources, it is an activity of
the primary sector. bc we directly derive materials from nature
How does the secondary sector differ from the primary sector?
Primary sector companies are directly engaged in activities utilizing natural resources, such as mining and agriculture. Secondary sector companies produce goods derived from the products within the primary sector, including manufacturing.
Why is the secondary sector considered essential for the economy?
The secondary sector is vital to the economy because it transforms raw materials from the primary sector into finished goods, adding significant value and enhancing the utility of products. This sector drives economic growth by creating a wide range of employment opportunities
How is the tertiary sector different from the primary and secondary sectors?
These are
activities that help in the development
of the primary and secondary sectors.
These activities, by themselves, do not
produce a good but they are an aid
or a support for the production
process
Why do economists use the value of goods and services instead of their quantities to calculate production?
It will be difficult to sum total production of homes, cars, household goods, food, restaurant services, etc., by using their quantities.
What are intermediate goods, and why are they not included in GDP calculations?
Intermediate goods are the goods that are used in making the final products. The reason for not including them in the GDP is because it will lead to counting the value of the goods twice.
What does GDP represent, and why is it an important measure for an economy?
GDP represents the value of goods and services produced within a country during a particular year.it serves as a major factor that is used for determining the development of the economy and is a very important parameter for estimating the performance of an economy.
What is the total production of a sector (definition)
the value of goods and services produced in each sector in a particular year is the total production of a sector and the sum of the production in 3 sectors is known as GDP
what is GDP (2m)
GDP is the total value of final goods and services produced within a country during a particular year.
Why would including the value of intermediate goods lead to an overestimation of GDP?
Including intermediate goods would lead to double counting because their value is already embedded in the final goods and services
How does the GDP of a country reflect the size of its economy
It calculates the value of final goods and services produced within a country hence telling how big the economy is
Why was the primary sector the most important sector during the initial stages of development in most countries?
1) Provided raw materials
2)Created employment opportunities
3)Contributed to foreign exchange earnings
What factors led to the growth of the secondary sector during the Industrial Revolution?
Those people who had
earlier worked on farms now began
to work in factories in large numbers.
They were forced to do so as you read
in history chapters. People began to
use many more goods that were
produced in factories at cheap rates
Why has the tertiary sector become the largest producing sector in India over the years?
1) govt. provides services
2) The development of primary and secondary sectors leads to demand for services
3) increase in income leads to demand of various services
4) introduction of info. and communication technology
How does the development of the primary and secondary sectors contribute to the growth of the tertiary sector?
the development of
agriculture and industry leads to the
development of services such as transport, trade, storage and the like,
as we have already seen. Greater the
development of the primary and
secondary sectors, more would be the
demand for such services.
Why is the growth in the service sector uneven in India?
At one end there are a limited number of services that employ highly skilled and educated workers. At the other end, there are very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
What are the potential benefits and risks of the tertiary sector becoming the largest producing sector in India
1) Employment
2) increase in finance
risks:-
1) fluctuation of money
2)lower productivity grains
What is the difference between underemployment and unemployment?
1) . Unemployment:
A situation where a person who is willing and able to work is not able to find a job.
The individual is not working at all.
The lack of work is visible and measurable.
It leads to a complete absence of income from employment.
2) Underemployment:
A situation where a person is employed but is working below their potential or in a capacity that does not utilize their skills or time fully. The individual is working, but not at their full capacity.
It may not be immediately visible because the person appears employed.
It often results in lower productivity and income compared to potential.
What is disguised unemployment, and how does it impact productivity in the agricultural sector?
Disguised employment is a kind of jobs in which some people visibly employed but are unemployed. it doesn’t effect the productivity of agricultural sector bc more than required ppl are doing one job so if we remove a few it won’t effect the productivity.
Explain why the growth in production in the secondary and tertiary sectors has not resulted in proportional employment growth.
bc not enough jobs were created in secondary and tertiary sector
Why should we be worried about underemployment?
1)the earning capacity of a person is reduced
2)poor standard of living. 3)low per capita income. 4)Job frustration and stress.
4)less productivity in the nation
5)hence a low level of the gross domestic product.
