Telangana SCERT Class 10 Social Science Chapter 3 Solution – Production and Employment. Here in this post we have provided Class 10 Physical Science Production and Employment Telangana State Board Solution. Telangana State Board English Class X Medium Students can download this Solution to Solve out Improve Your Learning Questions and Answers.
Telangana State Board Class 10 Social Science Chapter 3 Production and Employment Solution:
1.) Do you think the classification of economic activities into primary,secondary and services sectors is useful? Explain how.
Ans: The classification of economic activities into primary,secondary and services sectors is useful because it helps in estimating the total goods and services produced in each sector and calculates their contribution to the GDP of the country, which results in the development of the country.
2.) For each of the sectors that we came across in this chapter, whyshould one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Ans: For the country as a whole, we use the total value of final goods and services produced in the country during the year as the indicator of income for the country. The technical term to denote this value is Gross Domestic Product (GDP). GDP records the market value of all final goods and services produced.
People engaged in various economic activities in the above sectors produce a large number of goods and services.
Take, for instance, a farmer who sells paddy to a rice mill for Rs. 25 per kg. She sells 100 kilograms of paddy. Let us assume that she did not have to buy any seeds. The total value of paddy produced by her is Rs. 2500. The rice mill takes out rice and sells (i) 80 kilograms of rice to the hotelier for Rs. 40 per kg and (ii) 20 kilograms of husk at Rs. 20 per kg. The total value of goods produced by the rice miller is: (80 x 40) + (20 x 20) = Rs. 3600.That is what the hotelier pays the rice miller. The hotelier makes idli, dosa and husk is used as a fuel by him. The hotel owner, by using rice and husk, makes out Rs. 5000 from the sale of idli, dosa.
It makes sense only to include the value added at each stage or to take the value of final goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year.
GDP records the market value of all final goods and services produced. But there are many items that are not sold/ purchased in the market. One important example is the work that is done at home like cooking, cleaning, organizing, bringing up children, tending to plants and cattle etc. In most instances, these do not involve any monetary transaction and therefore remain outside the GDP measure, though they are extremely important for the economy. Also, the unpaid work is done mostly by women even today, in India and across the globe.
3.) How is the service sector different from other sectors? Illustrate with a fewexamples.
Ans: It has been noted that many of the now developed countries had agriculture and other allied activities as the most important contributor of GDP during the initial stages of development. As the methods of farming changed and agriculture sector began to prosper, it produced much more food than before. Many people could now take up other activities, as essential food requirements were met by other producers. There were increasing number of craft-persons and traders. Buying and selling activities increased many times, further increasing the demand for goods and services. Besides, rulers employed large number of people as administrators, army etc. However, at this stage, in an overall context, most of the goods produced were from agriculture and related sector and most people were also employed in this sector. Recall what you have read about the industrial revolution in the earlier classes. As new methods of manufacturing were introduced, factories came up and started expanding. Those people who had earlier worked on farms now began to work in factories in large numbers. People began to use many more goods. There was mass production by factories at much lower rates and these goods reached the markets all over the world. For these countries, industrial production gradually became the most important sector, both in the total production of goods and services and also in the employment of people. Hence, over time, a shift took place. This means that the importance of the sectors had changed. The industrial sector became the dominant sector and the importance of the agriculture sector both for employment and production declined. In the past 50 years, there has been a further shift from industry to service sector for developed countries. The service sector has become the most important sector in terms of total production. Most of the working people have also made a shift and are now employed in the service sector and most of the production activities are those of services and not manufactured goods.
4.) What do you understand by underemployment? Explain with one example each fromthe urban and rural areas.
Ans: Underemployment means the situation where people are unwillingly forced to perform low-paying jobs, or part-time paid jobs, because of their lack of qualification or lack of skills to perform a high paying job, or a normal job.
Take the case of a small farmer, Gayathri, who owns about two hectares of unirrigated land, dependent only on rain and growing crops like jowar and redgram. All five members of her family work on the plot throughout the year. Why? They have nowhere else to go for work. You will see that everyone is working, none remains idle, but in actual fact, their labour effort gets divided. Each one is doing some work but no one is fully employed. This is the situation of people who are underemployed, where people are apparently working but all of them are made to work less than their potential. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
5.) The workers in the unorganised sector need protection on the following issues:wages, safety and health. Explain with examples.
Ans: The employment opportunities in the organised sector have been expanding very slowly. As a result, a large number of workers are forced to enter the unorganised sector jobs which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular. When workers lose their jobs in the organised sector, they are forced to take up jobs in the unorganised sector with low earnings. Besides the need for more work, there is also a need for protection and support of the workers in the unorganised sector.In the rural areas, the unorganised sector mostly comprises of landless agricultural labourers, small and marginal farmers, sharecroppers and artisans (such as weavers, blacksmiths, carpenters and goldsmiths). Nearly 80 per cent of rural households in India are in small and marginal farmer category. These farmers need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storagefacilities and marketing outlets. As farm labourers, they require adequate work and payment of minimum wages. In the urban areas, unorganised sector comprises mainly of 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. Small-scale industry also needs government’s support for procuring raw material and marketing of output. The casual workers in both rural and urban areas need to be protected. Majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganised sector. It is worse if one is a woman from these communities. Besides getting the irregular and low paid work, these workers also face social discrimination. Protection and support to the unorganised sector workers is thus necessary for both economic and social development.
6.) A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000worked 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 theorganised sector. Present this data as a table. What are the ways for generating moreemployment in the city?
Ans:
Organized Sector | Unorganized Sector | Total | |
Workers | 400000 | 1100000 | 1500000 |
Income | 3200 crores | 2800 crores | 6000 crores |
Measures should be taken by the government to increase production of goods and services in the unorganized sectors, so that it comes in order with the organized sectors and becomes equal to it, because there are more people working in the unorganized sectors than in the organized sectors, but somehow the income of the people working in the organized sector has more income than people working in the unorganized sector. Governments should also take up the initiative to employ more people and increase their wages.
7.) Read the 4th para of page 34, i.e. “ In the past 50 years, …………. observed for developedcountries”.Is a similar pattern observed for India? Give your opinion.
Ans: In the following 2 pie charts. The contribution of various activities to GDP has been presented for two financial years – 1973-74 and 2013- 2014. The circle or the pie represents the GDP in the given year. GDP is made up of production from the three sectors – agriculture, industry and services. Services, in turn, are seen to comprise of three types.
Community, social and personal services include Public Administration, Defence, Education, Health, Veterinary activities, Media, Library, archives, museums and other cultural activities etc.
Finance, insurance and real estate include Services of banks, post-office savings accounts, non-bank financial companies, Life Insurance and General Insurance Corporation, services of brokers and real estate companies etc.
Trade, hotels, transport and communication are also a part of the sectors.
During the 43-year period, the output share of agriculture sector has fallen drastically. There was a small increase in the share of industrial output in GDP. In contrast to this, there is a tremendous increase in the share of service activities – two out of three sub-sectors of service activities have expanded.
Unfortunately in India, while there has been a change in the share of the three sectors in GDP, a similar shift has not taken place in employment. Graph 3 shows the share of employment in the three sectors in 1973-74 and 2015-16. The agriculture sector continues to be the largest employer even now. It is because not enough jobs were created in the industry and service sectors. More than half of the workers in the country are working in the agriculture sector, producing only one-sixth of the GDP. In contrast to this, the industry and service sectors produce three-fourth of the GDP whereas they employ only about half the proportion of workers.
8.) Observe the ‘pie’ graphs given in page 35 and answer the following questions.
i) In the year 2015-16, in G.D.P. share of which sectors are increased when compared to the year 1973-74?
Ans: In the year 2015-16, the G.D.P. share of manufacturing and service sectors have increased when it is compared to the year 1973-74.
ii) How much the share of agricultural sector in GDP is decreased in the year2015-16 when compared to the year 1973-74?
Ans: The share of agricultural sector in GDP had decreased from 43% to 17% in the year 2015-16 when is was compared to the year 1973-74.
9.) What points are to be considered while estimating gross domestic product?
Ans: Suppose there are two families – a rich family and a poor family. We can make such judgements as “rich” or “poor” based on: the dress people in the family wear, the vehicles they use to travel, the food they eat, the house they live in, furniture and other equipment they have, hospitals they go to for treatment etc. Alternately, income that these families earn is an important overall indicator. For the country as a whole, we use the total value of final goods and services produced in the country during the year as the indicator of income for the country. The technical term to denote this value is Gross Domestic Product (GDP)
People engaged in various economic activities in the above sectors produce a large number of goods and services. With as many as thousands of goods and services being produced, it becomes an impossible task.
To get around this problem, economists suggest that the value of final goods and services should be used rather than adding up the actual numbers. For example, if 10,000 kilograms of paddy are sold at Rs. 25 per kg, the total value of paddy will be Rs. 2,50,000. The value of 5000 coconuts at Rs. 10 per coconut will be Rs. 50,000. Take, for instance, a farmer who sells paddy to a rice mill for Rs. 25 per kg. She sells 100 kilograms of paddy. Let us assume that she did not have to buy any seeds. The total value of paddy produced by her is Rs. 2500. The rice mill takes out rice and sells (i) 80 kilograms of rice to the hotelier for Rs. 40 per kg and (ii) 20 kilograms of husk at Rs. 20 per kg. The total value of goods produced by the rice miller is: (80 x 40) + (20 x 20) = Rs. 3600. This is what the hotelier pays the ricemiller. The hotelier makes idli, dosa and husk is used as a fuel by him. The hotel owner, by using rice and husk, makes out Rs. 5000 from the sale of idli, dosa.oods such as paddy, rice and husk in this example are at the intermediary stages. They are not being used by the final consumer. They are used as inputs to make the final good, which in this example is idli and dosa. If one were to add the value of all the physical inputs in between plus the value of the final goods, we would be double counting. The value of final goods already includes the value of all the in between or intermediate goods that are used in making the final good. At each stage, the producer paid for these inputs produced by someone before. Hence, the value of Rs. 5000 worth of hotel items sold by hotelier (final good) already includes Rs. 3600, the value of rice and husk used as physical inputs. This was not made by the hotelier but he only purchased them from the rice miller. Similarly, the rice and husk produced by the miller at Rs. 3600 already includes the value of physical input paddy (Rs. 2500) purchased by him. He did not produce paddy. The farmer produced this in stage 1. To count the value of the rice and paddy separately means counting the value of the same things a number of times – first as paddy, then as rice and husk and finally as idli and dosa.
The good becomes final if it is not used further in producing goods to be sold. In the above example, if the rice had been bought by a family for their consumption, this would be the final point. Idli and dosa would be made by the family for themselves and not as goods to be sold.
Another way of looking at these stages is to focus only on the value added at every step by the producer of the good. To find out the value added by the producer to the physical inputs purchased by him, we will relook at the above example:
Stage 1 (sale of paddy by farmer to rice miller) = Value Added Rs. 2500 (obtained by deducting input value zero from product value Rs. 2500)
Stage 2 (sale of rice and husk by rice miller to hotelier) = Value Added Rs.3600 (obtained by deducting input value of Rs.2500 from product value Rs.3600)
Stage 3 (sale of idlis, dosas) = Value Added Rs. 1400 (Obtained by deducting input value of Rs.3600 from product value Rs.5000) Total Value Added (stage wise) = 2500+1100+1400=5000
10.) Discuss the changes in shares of different sectors in GDP.
Ans: Different sectors contribute to Gross Domestic Product of India and also realised the comparative importance of the three sectors. This helps us to analyse the shifts that take place or don’t take place for both production and employment.Narasimha and Rajeshwari are illustrative examples of workers employed in organised and unorganised sectors respectively. ? The distinction between organised and unorganised sectors helps us to understand the working situation and wages recieved by the majority of workers in the country. 92 per cent of workers in India are found in unorganised sector and only 8 percent find work in the organised sector.
The organised sector offers jobs that are most sought-after. But the employment opportunities in the organised sector have been expanding very slowly. As a result, a large number of workers are forced to enter the unorganised sector jobs which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular. When workers lose their jobs in the organised sector, they are forced to take up jobs in the unorganised sector with low earnings. Besides the need for more work, there is also a need for protection and support of the workers in the unorganised sector.
In the urban areas, unorganised sector comprises mainly of 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. Small-scale industry also needs government’s support for procuring raw material and marketing of output. The casual workers in both rural and urban areas need to be protected. Majority of workers from scheduled castes, tribes and backward communities find themselves in the unorganised sector. It is worse if one is a woman from these communities. Besides getting the irregular and low paid work, these workers also face social discrimination. Protection and support to the unorganised sector workers is thus necessary for both economic and social development.
When examining both the production of goods and services and employment from these sectors. The unorganised sector also contributes to GDP. During 2004-05, the unorganised sector workers accounted for 92 per cent of all workers that contributed half of all production. On the other hand, only 8% of people had a decent employment and contributed 50% of the production of goods and services. The products and services of these companies find a market but they support a very small section of the population with privileged jobs. This is an extremely unequal situation. The rest find only insecure low paying jobs or are self-employed with low earnings or remain underemployed.
11.) Analyse the role of unorganised sector in GDP.
Ans: In the urban areas, unorganised sector comprises mainly of 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. Small-scale industry also needs government’s support for procuring raw material and marketing of output. The unorganised sector also contributes to GDP. During 2004-05, the unorganised sector workers accounted for 92 per cent of all workers that contributed half of all production. On the other hand, only 8% of people had a decent employment and contributed 50% of the production of goods and services. The products and services of these companies find a market but they support a very small section of the population with privileged jobs. This is an extremely unequal situation. The rest find only insecure low paying jobs or are self-employed with low earnings or remain underemployed.
12.) Look at the illustration given on page 32, what is the likely chain of production inher case and who would benefit from the value added?
Ans: The value of final goods already includes the value of all the in between or intermediate goods that are used in making the final good. At each stage, the producer paid for these inputs produced by someone before. Hence, the value of Rs. 5000 worth of hotel items sold by hotelier (final good) already includes Rs. 3600, the value of rice and husk used as physical inputs. This was not made by the hotelier but he only purchased them from the rice miller. Similarly, the rice and husk produced by the miller at Rs. 3600 already includes the value of physical input paddy (Rs. 2500) purchased by him. He did not produce paddy. The farmer produced this in stage 1. To count the value of the rice and paddy separately means counting the value of the same things a number of times – first as paddy, then as rice and husk and finally as idli and dosa. The good becomes final if it is not used further in producing goods to be sold. In the above example, if the rice had been bought by a family for their consumption, this would be the final point. Idli and dosa would be made by the family for themselves and not as goods to be sold.
Farmers or the people who farm the wheat would benefit from the above value added.