Year	primary	secondary	tertiary
1950	80,000	19,000	39,000
2000	3,14, 000	2,80,000	5,55,000

(i) Calculate the share of the three sectors in GDP for 1950 and 2000.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?

 

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

(ii)

(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.

Q.1 During the period between 1973 to 2003, the production has increased most in the
 (a) primary sector (b) secondary sector
 (c) tertiary sector (d) all the three sectors
 
Q.2 GDP is the value of……….. produced during a particular year :
(a) All goods & services (b) All final goods & services
(c) All intermediate goods &services (d) All intermediate & final goods and services

Q.3 The sectors are classified in to public and private sectors on the basis of
(a) Employment conditions (b) The nature of economic activity
(c) Ownership of enterprises (d) Number of workers employed in the enterprises

Q.4 NREGA 2005 guarantees work for how many days in a year
(a) 100 (b) 120
(c)150  (d) 90

Q.5 Which one of the following is a public sector enterprise?
 (a) TISCO (b) RIL
 (c) Indian Railway (d) WIPRO

Q.6 Which was the largest producing sector in 1973?
(a) Primary sector (b) Secondary sector
(c) Tertiary sector (d) Public sector 

Answer key of MCQ: 1. (c) 2. (b) 3. (C) 4. (a) 5. ( c) 6( a)

Public Sector
(i) The government owns most of the assets and provides all the services .
(ii) The purpose of the public sector is not just to earn profit, but also to raise the welfare of the economy.
(iii) Railways or post office is an example of the public sector. 

Private Sector
(i) Ownership of assets and delivery of services is in the hands of private individuals or companies.
(ii) Activities in the private sector are guided by the motive to earn profit.
(iii) Tata Iron and Steel Company Limited or Reliance Industries Limited are privately owned. 

(a) This situation is because not enough jobs are created in the secondary and tertiary sectors.
 (b) Though the industrial production of goods went up by eight times, but employment in the industry went up by only 2.5 times. 
 (c) Similarly in the tertiary sector, production rose by 11 times but employment rose less than three times.
 As a result, more than half of the population is dependent on the primary sector which contributes only a quarter of GDP. 

Only final goods and services are included while calculating National Income because:
(a) Final goods are those goods which have crossed the boundary line of production and are ready for final consumption and investment.
(b) The value of final goods already includes the value of all the intermediate goods that are used in making the final goods. This would lead to the problem of double counting if all the goods of the economy will be included while calculating national income.
(c) This should be avoided because if the value of any commodity is counted more than once it will result in overestimation of national income.

A condition in which each individual appears working but no one is fully employed. This is the situation of under employment. People under such type of employment cannot utilize their potential and capacity in full.
 It is in primary sector because-
(i) This sector comprises the poorest section of society in majority
(ii) People engaged in this sector are illiterate or semi-literate.

The tertiary sector becoming more important in India because :
(i) In any country several basic services like transport, bank, insurance, educational institutions etc are  required and the government has to take responsibility for the provision of these services.
(ii) The development of agriculture and industry lead to the development of services such as transport, trade, storage etc.
(iii) As income level rises, certain section of people started demanding many services like eating out, tourism, private hospital etc.
(iv) Certain new services such as those based on information and communication technology have become important and essential