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Class VIII SS T3 Public and Private Sectors Textbook Solutions
PUBLIC AND PRIVATE SECTORS
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
Ans: 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
Ans: 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
Ans: b) Joint Sector
4. Public sector is on motive.
a) Profit Motive b) Service Motive
c) Speculative Motive d) None of these
Ans: b) Service Motive
II Fill in the blanks
1. The ________ and_______ are allotted their respective roles in promoting the economic welfare of all sections of the community.
Ans: Public Sector , Private Sector
2. The private sector is on _______motive.
Ans: Profit
3. __________is the process of social and economic development in a society.
Ans: Socio-economic development
4. The main function of private sector is to create ________ and ________.
Ans: innovation , modernisation
5. The government is committed to strengthening ________and co-operation among the citizens.
Ans: Community business
III Match the following
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
Ans: 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
Ans: c) i and ii are correct
VI Answer in briefly
1. Write short note on public sectors.
The sector, which is engaged in the activities of providing government goods and services to the general public is known as Public Sector.
2. What does the society want?
The society needs literacy and employment opportunities to run a standard and peaceful life .
3. Write the objectives of Public sector.
To promote rapid economic development through creation and expansion of infrastructure
To generate financial resources for development
To promote redistribution of income and wealth
To create employment opportunities
To promote balanced regional growth
4. What are the three organs of public sectors?
Administration by a Government Department
The Joint sector companies
Public Corporation
5. Name some indicators that measure socio-economic development.
GDP
Life Expectancy
Employment
Literacy
6. Write short note on Private sector.
The segment of a national economy that is owned, controlled and managed by private individuals or enterprises is known as Private sector.
7. Name any three Major Private Sector industries.
Infosys
Aditya Birla Company
Reliance Industrial companie
VII Answer the following in detail
1. Explain the organs of public sector.
Organs of public sector:
Administration by a Government Department
It is very common in almost all countries. Example - Post and Telegraph, Railways, Port Trust, Irrigation Projects on India etc.,
The Joint sector companies:
It is governed by a company law and controlled by the Government as principal major shareholders. Example - Indian Oil Petronas pvt ltd, Indian Oil Sky tanking Limited.
Ratnagiri Gas and Power Private Limited, Indian Synthetic Rubber Limited.
Public Corporation :
This type of organization is the establishment of a public corporation by the state of the parliament or legislature. Example - LIC, Air India, The Reserve bank of India, Electricity Board
2. Write briefly explain the history of public Sector.
When India achieved independence in 1947, it was primarily an agricultural country with a weak industrial base.
There were only eighteen Indian Ordnance Factories in the country which the British had established for their own economic interest.
The national consensus was in favour of rapid industrialisation of the economy which was seen as the key to economic development, improving living standards and economic sovereignty.
Building upon the Bombay Plan (1940), the first Industrial Policy Resolution announced in 1948 laid down the strategy of industrial development.
Subsequently, the Planning Commission in March 1950 and the Industrial Act was enacted in 1951 took necessary steps to regulate industrial development.
Prime Minister Jawaharlal Nehru promoted an economic policyand advocated a mixed economic system.
India's second five year plan (1956–60) and the Industrial Policy Resolution of 1956 emphasised the development of public sector enterprises
The 1991 industrial policy was deliberating disinvestment of the public sector and allowing greater freedom to the private sector.
3. Explain any five measured indicators of socio - economic development.
INDICATORS OF SOCIO-ECONOMIC DEVELOPMENT
Gross Domestic Product (GDP)
GDP supports in developing socio -Economic Development. The proportion of GDP by the industrial sector both private and public sector has been increased. It results in increasing government funds and increasing public spending.
Life Expectancy
According to the 2011 Census of India, Life expectancy in India is 65.80 years for men and 68.33 years for women. Government provides high degree of health measures through various programmes.
Literacy
Educational skill plays a vital role in Socio Economic Development. Sarva Siksha Abhiyan(SSA) is the government of India’s flagship programme. It is implemented for making free and Compulsory Education to the children of 6-14 years with life skills. The Government also introduced RMSA, Smart class, e-learning, free computer skill classes and eco-friendly studying environment, Digital India for increasing the level of quality in education.
Employment
A growing number of people moved urban areas in search of employment. It increased urban population.
To promote rural and backward areas the government encourages private sectors to start an industry in backward areas by providing tax benefit electricity at a lower tariff, etc., It removes regional inequality.
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?
Importance of Public sector
Public sector plays a major role in the development of any economy. It has following importance:-
Public Sector and Capital Formation: The role of the public sector in collecting, saving and investing them during the planning period has been very important.
Economic Development: Economic development mainly depends upon industrial development. Heavy & basic industries like iron & steel, shipping, mining, etc. are required for supplying raw materials to small industries.
Balanced Regional Development: Public enterprises have developed facilities like electricity, water supply, township and manpower, thereby bringing about complete transformation in the socio- economic life of the people in these regions.
Employment Generation: Public sector has created millions of jobs to tackle the unemployment problem in the country.
Export Promotion and Foreign Exchange Earnings: Some public enterprises have done much to promote India’s export.
Protection to Sick Industries: Public sector, to prevent sick units closing down, takes over their responsibility & prevents many people from getting unemployed. Not only this but it prevents unnecessary locking of capital, land, building, machinery,etc.
Import Substitution: Some public sector enterprises were started specifically to produce goods which were formerly imported and thus to save foreign exchange.
5. Write the differences between public and private sector.
6. Write the functions of private sector.
Functions of Private Sector
The main function of the private sector is to create innovation and modernization.
The profit motive drives them to invent, innovate new techniques of production and manage the productive activities in a scientific manner.
Develop and maintain infrastructure and services.
Promote and expand existing businesses.
Promote human capital development and encourage community development by promoting community business and co-operatives, local exchange systems and informal credit etc..
Promote small, micro and medium enterprises (SMME) through supply side measures and demand side measures and attract investment in the city.
