Class X Economics | Chapter 2 | Important Questions From Division Of Sectors As Organized And Unorganized

Sections in this article

One mark questions

1. How does public sector help in the development of a country?

Public sector helps in the development of a country by creating more jobs and expanding the infrastructure.

2. Why is there a need to protect workers in the unorganized sector?

In the unorganized sector, people work in small and scattered units that are not controlled by the government. Although there are laws and regulations to protect the interest of these workers, they are not followed. Hence, there is an urgent need to protect the interests of these workers.

3. What is the major difference between the working conditions in the organized and unorganized sectors.

In the organized sector, the working conditions are governed by government rules and regulations such as Factories Act, Industrial Disputes Act, Minimum Wages Act etc. In the unorganized sector, these rules are not followed and workers are often exploited.

4. What types of people come under the unorganized sector in rural areas?

Marginal farmers, landless agricultural labourers etc come under the unorganized sector in rural areas.

5. In which sector are the terms of employment regular?

The organized sector

6. Sabu works as a driver in a government department and Sunil works as a mechanic in a private workshop. Whose job is more unproductive and why?

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Sunil’s job is more unproductive. He has no job security and he can lose his job at any time. Also, he does not enjoy any benefits like overtime salaries, paid leave, sick leave etc.

He earns a low salary and there are days when he does not do much work or no work at all. His earnings are pretty low on those days. Also, when there is less work, the workshop owner may ask him to leave. This is not the case with Sabu as he has assured salary and his working conditions are controlled by government laws and regulations.

7. Why do people want to work in the organized sector?

People want to work in the organized sector for the following reasons.

(a) The organized sector follows government laws and regulations like Factories Act, Industrial Disputes Act and Minimum Wages Act etc.

(b) The terms of employment are regular and salary is assured.

(c) Employees get benefits like paid leave, pension, gratuity etc.

(d) The working hours are fixed and if they work for longer hours, they get overtime salary.

8. Define the term unorganized sector. Mention some disadvantages of working in this sector.

The unorganized sector includes small and scattered units that are largely outside the control of the government.

The main disadvantage of working in the unorganized sector is that there is no job security. Workers are not given any employment letter by the employer. Workers can be asked to leave any time. Also, there is no guarantee that they will be paid an assured salary every month.

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Wages are usually low and when there is a drop in the amount of work, there will be a drop in the wages as well. In addition, employees are sometimes forced to work overtime but they are not paid overtime wages. They do not enjoy benefits like paid leave, pension or gratuity.

9. What constitutes the unorganized sector in urban areas? Why do workers in this sector need protection?

In the urban areas, the unorganized workforce includes casual workers in construction, roadworks, trade and transport. People who work on their own doing jobs like selling on the street also belong to this sector.

The workers in this sector need protection for the following reasons.

(a) They do not have any job security or guaranteed monthly salary.

(b) They are often forced to work overtime under inhuman conditions.

(c) They do not have medical or life insurance.

(d) They do not enjoy benefits like paid leave, sick leave, pension or gratuity.

10. How can workers employed in the unorganized sector be protected?

Workers in the unorganized sector can be protected in the following ways:

Minimum Wages Act should be implemented across all sectors so that every worker can earn enough to make a living.

Small farmers should be given credit at low interest rates.

The government should launch skills development programs for rural and urban youth to improve their employability.

Small scale and cottage industries should be promoted. People interested in launching their own industrial unit should be given credit at low interest rates.

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