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.
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