Ans)  Yes, we think that the classification of economic activities into primary, secondary and tertiary is useful. When we produce a good by exploiting natural resources, it is an activity of the primary sector for e.g., Agriculture dairy etc.

The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activitiy for e.g., making machines from iron, using cotton fibre from the plant, we spin yarn and weave cloth. This is the next step after primary activities. Tertiary sector by themselves do not produce a good but they are an aid or a support for the production process for e.g., goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. Therefore we can say that the classification of economic activities into primary, secondary and tertiary is useful.

Ans) We do not agree that tertiary system is not playing any significant role in the development of Indian economy. Its importance is discussed on the following basis:-

1. Employment opportunities – The service sector provides employment to people in both direct and indirect forms, for example, Indian Railways employs a total of 14 lakh employees. This number is more than any other undertaking in the country. The contribution of transportation, information and communication technology, banks, educational institutions, health services, tourism and hotel settlements is very high in employment opportunities. In this way, the service sector helps in removing unemployment and increasing the income of people.
2. Increase in production – The service sector is helpful in producing more and increasing the quality at less cost and in less time. This sector helps in two ways-one is to increase the quality of production by providing skilled training and healthy workers. Secondly it increases production and income by increasing efficiency.
3. Helpful in industrial development – Banks and other financial institutions create credit and supply capital for all types of industries, whether it is short term need of finance, medium or long term. From establishment of industries to transportation of goods in market and even for advertisement all arrangements are made by the service requirements. sector. In short, the service sector helps in industrial development by meeting the capital requirements.
4. Auxillary in the expansion of the market – The service sector helps in expanding the market of primary and secondary sector products. With the convenience of transport, goods and passengers are carried from one place to another. Business deals or hotels are looked through the means of communication. This simplifies all kinds of activities.
5. Earning of foreign exchange – For the past few years, a large amount of foreign exchange is also being received from the export of services. Along with shipping and air services, we also get foreign exchange from tourism and financial services. In recent years, there has been a lot of development in the areas of computer software, call centres, education, and health and now these services are also earning foreign exchange.

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Public Sector	Private Sector
Installation: The establishment of the public sector is established by the central government, state government, local government, or any public authority.	Installation: The private sector is established by private individuals or non-government organizations.
Aim: The main aim of the public sector is not profit-making, but its main objective is social welfare.	Aim: The objective of the private sector is to earn maximum profit, for which they keep on reducing expenses and increasing income.
Financial Status: The burden of financial arrangement of the public sector is generally on the government; that is, they do not have the right to make financial arrangements from their own resources.	Financial Status: The Private sector makes their own financial arrangements. This area is financed by taking public shares and loans from eligible sales tax or loans from financial institutions.
Management and Ownership: In this area, the responsibility of ownership and management rests with the government.	Management and Ownership: The responsibility of ownership and management lies in private hands.
Regional Balance: public sector minimizes regional inequalities; as a result, the steel plants of Bhilai, Rourkela, and Durgapur and units of HAL and BHEL are established to ensure the objective of the regional balance.	Regional Balance: The purpose of the private sector is to set up industries in such places where the facilities are already there so that they do not have to spend much on their installation.

Ans) The activities of the service sector or the tertiary sector are different from the primary and secondary sectors. The activities in the service sector do not automatically produce goods, but contribute to the production process, for example, goods produced by the primary and secondary sectors need to be transported by rail or by truck to be sold in wholesale and retail markets. Warehouses are needed to store manufactured goods from industries. To produce in primary and secondary sectors, it is necessary to take loans from banks.

Activities related to transport, storage, communication, banks, trade etc. comes under tertiary sector. The expansion of these activities gives impetus to economic development. Since the activities of the tertiary sector create services in place of goods, it is also called the service sector.

There are also some services in the economy which help indirectly by not contributing directly to the production of goods, for example, the services of teachers, doctors, lawyers, accountants, administrators, etc. can be taken the services of washerman, barbers, and cobblers are also important. At present, services based on information technology such as internet, cafes, etc. ATM booths, call centers, software manufacturing etc. also play an important role in the production activities.

Ans) Disguised unemployment: This type of unemployment is not directly visible. It remains hidden. In India, this type of unemployment is found in agriculture, in which more people are engaged than necessary. If some of these people are excluded under disguised unemployment. From the work of farming, there will be no difference in production. Such persons come

For example, three persons are required in the field, but all five persons of the household are engaged in that work, yet it does not make any difference in the unemployment. production, so two extra persons are engaged in this work. This is hidden or invisible unemployment.

This unemployment can happen in other sectors as well, for example, there are thousands of casual workers in the service sector in cities who seek employment. They do plumbing, painting, and repair work and others do inconvenient odd jobs. Many of them do not get work daily. Similarly, we see some people pulling a cart on the street or selling some goods in the service sector where they spend the whole day but earn very little.

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