Questions with Answers

Exercise

I Choose the correct answer

1. The public sector in India owes its origin in the___________ Industrial policy resolution of the Government of India.

a. 1957

b. 1958

c. 1966

d. 1956

[Answer: d) 1956]

2. Mixed economy is the mixture of merits of both ___________

a. Capitalism

b. Socialism

c. a & b are correct

 d. a & b are incorrect

[Answer: c) a & b are correct]

3. ___________is governed by a company law and controlled by the Government as principal major share holders.

a. Private Sector

b. Joint Sector

c. Public Sector

d. None of these

[Answer: b) Joint Sector]

4. Public sector is on___________ motive.

a. Profit Motive

b. Service Motive

c. Speculative Motive

d. None of these

[Answer: b) Service Motive]

II Fill in the blanks

1. The Public sector and Private sector are allotted their respective roles in promoting the economic welfare of all sections of the community.

2. The private sector is on profit motive.

3. Socio Economic Development is the process of social and economic development in a society.

4. The main function of private sector is to create Innovation and Moderisation.

5. The government is committed to strengthening understanding and co-operation among the citizens.

III Match the following

1. Think Tank - Primary Sector

2. Agriculture - Gross Domestic Product

3. Industries - NITI Aayog

4. GDP - Secondary Sector

Answer:

1. Think Tank - NITI Aayog

2. Agriculture - Primary Sector

3. Industries - Secondary Sector

4. GDP - Gross Domestic Product

IV Which is the Odd one

1. Which one of the following is not the indicator of the Socio Economic Development.

a. Black Money

b. Life Expectancy

c. Gross Domestic Product (GDP)

d. Employment

[Answer: a) Black Money]

V  Which of the following is a correct answer

1. i) The Industries which would be exclusively owned by the state are referred to as Schedule-A

ii) The industries in which the private sector could supplement the efforts of the state sector, with the state taking the sole responsibility for starting new units which are specific in Schedule-B.

iii. The remaining industries which were in the private sector are not mentioned in Schedule.

a. All are Correct

b. i and iii are correct

c. i and ii are correct

d. None of these

[Answer: c) i and ii are correct]

VI Answer in briefly

1. Write short note on public sectors.

Answer:

(i) The sector, which is engaged in the activities of providing government goods and services to the general public is known as Public Sector.

(ii) The enterprises, agencies, and bodies are fully owned, controlled and run by the government whether it is central government, state government or a local government.

2. What does the society want?

Answer: The society wants rapid industrialisation of the economy as the main key to economic development, improving living standards and economic sovereignty.

3. Write the objectives of Public sector.

Answer: The objectives of Public Sector

(i) To promote rapid economic development through creation and expansion infrastructure

(ii) To generate financial resources for development

(iii) To promote redistribution of income and wealth

(iv) To create employment opportunities

4. What are the three organs of public sectors?

Answer: The three organs of public sector are

(i) Administration by a Government Department

(ii) The Joint sector companies

(iii) Public Corporation

5. Name some indicators that measure socio-economic development.

Answer: Socio-economic development is measured with indicators, such as GDP, life expectancy, literacy and levels of employment.

6. Write short note on Private sector.

Answer:

(i) The segment of a national economy that is owned, controlled and managed by private individuals or enterprises is known as Private sector.

(ii) The private sector companies are divided on the basis of sizes.

(iii) They can be created in two ways, i.e. either by the formation of a new enterprise or by the privatization of any public sector enterprise.

7. Name any three Major Private Sector industries.

Answer:

(i) Infosys

(ii) Aditya Birla Company

(iii) Tata Group of Companies

VII Answer the following in detail

1. Explain the organs of public sector.

(i) Administration by a Government Department:

(a) It is very common almost in all countries.

(b) Example : Post and Telegraph, Railways, Port Trust, Irrigation Projects on India etc.,

(ii) The Joint sector companies:

(a) It is governed by a company law and controlled by the Government as principal major share holders.

(b) Example : Indian Oil Petronas pvt ltd, Indian Oil Sky tanking Limited. Ratnagiri Gas and Power Private Limited, Indian Synthetic Rubber Limited.

(iii) Public Corporation :

(a) This type, of organization is the establishment of public corporation by the state of the parliament of legislature.

(b) Example - LIC, Air India, The Reserve bank of India, Electricity Board.

2. Write briefly explain the history of public sector.

Answer:

History of Public Sector :

(i) When India achieved independence in 1947, it was primarily an agricultural country with a weak industrial base. It is established for their own economic interest and rule the subcontinent with brute force.

(ii) The first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development.

(iii) The Planning Commission was formed in March 1950 and the Industrial Act was enacted in 1951.

(iv) Pandit Jawaharlal Nehru believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of the Indian economy.

(v) His vision was carried forward by Dr. V. Krishnamurthy and the Indian statistician Mahalanobis.

(vi) The 1991 industrial policy allowed greater freedom to the private sector and foreign direct investment was invited from business houses outside india.

(vii) Thus, multinational corporations gained entry into the Indian economy.

(viii) Thus, we have public sector units, private sector enterprises and multinational Co existing in Indian economy.

3. Explain any five measured indicators of socio - economic development.

Answer:

(i) Gross Domestic Product (GDP) :

(a) GDP supports in developing socio - Economic Development.

(b) The proportion of GDP by the industrial sector both private and public sector has been increased.

(c) It results increasing government funds and increase public spending.

(ii) Life Expectancy:

(a) The life expectancy in India is.65.80 years for men and 68.33 years for women.

(b) Government provides high degree of health measures through National Health Production Scheme and serves poor and vulnerable families.

(iii) Literacy:

(a) Sarva Siksha Abhiyan(SSA) implemented for making free and Compulsory Education to the children of 6-14 years with life skills.

(b) The Government also introduced RMSA, Smart class, e-leaming, free computer skill classes and Digital India for increasing the level of quality in education.

(iv) Employment:

(a) A growing number of people moved urban areas in search of employment.

(b) Hence Government started the Smart city with many facilities to encourage people to take up employment in these places.

(c) The Government encourages private sectors to start an industry in backward areas by providing tax benefit electricity at a lower tariff, etc.,

(v) Provision of House, Clean Drinking Water and Sanitation :

Government sector provides housing facilities, clean drinking water facilities and sanitary facilities under clean India Planning.

4. What are the importance of public sector?

Answer: Public sector plays a major role in the development of any economy. It has following importance:

(i) Public Sector and Capital Formation :

The role of public sector in collecting, saving and investing them during the planning period has been very important.

(ii) Economic Development:

(a) Economic development mainly depends upon industrial development.

(b) Heavy and basic industries like Iron and steel, shipping, mining, etc. are required for supplying raw materials to small industries. 

(iii) Balanced Regional Development:

Public enterprises have developed the backward areas thereby bringing about complete transformation in the socio-economic life of the people in these regions.

(iv) Employment generation :

(a) Public sector has created millions of jobs to tackle the unemployment problem in the country.

(b) The number of persons employed during the year 2011 was 150 lakh.

(iv) Export Promotion and Foreign Exchange Earnings :

(a) Some public enterprises have done much to promote India’s export.

(b) The State Trading Corporation (STC) . The Minerals and Metals Trading Corporation (MMTC) have done very well in export promotion.

(v) Protection to Sick Industries :

(a) Public sector takes over the sick industries and prevent many people from getting unemployed.

(b) It also prevents unnecessary locking of capital, land, building, machinery,etc.

(vi) Import Substitution:

(a) Some public sector enterprises were started specifically to save foreign exchange.

(b) The ONGC, the Indian Oil Corporation Ltd., the Bharat Electronics Ltd., etc., have saved foreign exchange by way of import substitution.

5. Write the differences between public and private sector.

Public Sector

1. Ownership of industries is with government

2. Public Revenue Depends upon levy of taxes, on income and commodities and services

3. Public sector ensures the proper wage

4. It does not allow to concentrate huge wealth in few hands or rich people

5. Eg : NLC, SAIL, BSNL.

6. No tax evasion

7. It is service oriented

8. Reservations are implemented. Priority is given to the socially backward people

Private Sector

1. Ownership of industries is with private individuals

2. Issuing shares and debentures or by taking loan

3. Private sector exploits the workers.

4. It allows concentrate of huge wealth in few hands or rich people

5. Eg : TVS Motors, Ashok Leyland, TATA Steel.

6. Tax evasion is possible

7. It is purely profit oriented

8. It does not care the socially backward class, Reservation is not followed.

6. Write the functions of private sector.

Answer: Functions of Private Sector are given below.

(i) The main function of private sector is to create innovation and modernization.

(ii) Develop and maintain infrastructure and services.

(iii) Promote and expand existing businesses.

(iv) Promote human capital development, to help vulnerable groups.

(v) Promote small, micro and medium enterprises (SMME) through supply side measures and demand side measures and attract investment in the city.

(vi) The Government has fixed a specific role to the private sector in the field of industries, trade and services sector.

VIII Activity

 Life expenctancy - ability to lead a long and health life.

IX. Life Skill

1. Teacher and students are discuss about the Socio - Economic Development and industrial growth and development in that locality.