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Students can Download Chapter 8 Infrastructure Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 8 Infrastructure

Plus One Economics Infrastructure One Mark Questions and Answers

Question 1.
Which among the following is an economic infrastructure?
(i) Eduction
(ii) Transport
(iii) Healthcare
(iv) Housing
Answer:
(ii) Transport

Question 2.
Who was the largest consumer of commercial energy in 1953-54 in India?
(i) Household sector
(ii) Industry sector
(iii) Agriculture sector
(iv) Transport
Answer:
(iv) Transport

Question 3.
What is the Contribution of nuclear energy of total energy consumption in India?
(i) 2%
(ii) 13%
(iii) 20%
(iv) 10%
Answer:
(i) 2%

Question 4.
Which of the following nations has lowest Health expenditure as a percentage of GDP?
(i) India
(ii) China
(iii) USA
(iv) Sri Lanka
Answer:
(iv) Sri Lanka

Question 5.
Identify social infrastructure from the following.
(i) Education
(ii) Energy
(iii) Transport
(iv) Communication
Answer:
(i) Education

Question 6.
Find out conventional energy.
(i) Biogas
(ii) Wind energy
(iii) Petroleum
(iv) Solar energy
Answer:
(iii) Petroleum

Question 7.
Infant mortality rate in India in 2012 was ______ .
(i) 40
(ii) 47
(iii) 57
(iv) 60
Answer:
(ii) 47

Question 8.
Write the full form of NTPC.
Answer:
NTPC stands for National Thermal Power Corporation.

Plus One Economics Infrastructure Two Mark Questions and Answers

Question 1.
Write any two features of Indian system of medicine.
Answer:

1. They are very effective
2. They are safe and inexpensive

Question 2
State whether true or false.

1. education comes under social infrastructure
2. solar energy is nonconventional energy
3. Ayurveda is an Indian system of medicine
4. major part power generation in India comes from hydro projects.

Answer:

1. true
2. true
3. true
4. False, major part power generation in India comes from thermal projects

Question 3.
Name some National Health Care Programme.
Answer:

• National Malaria Eradication Programme
• National Filaria Control Programme
• National Family Welfare Programme
• National Diarrhoeal Diseases Control Programme

Plus One Economics Infrastructure Three Mark Questions and Answers

Question 1.
Name three sources of non-conventional energy.
Answer:

1. Solar energy
2. Wind energy
3. Tidal power

Question 2.
Classify the following into commercial energy and non-commercial energy:
Coal, petrol, agricultural waste, dry animal dung, twig of trees, natural gas.
Answer:

Question 3.
Classify the following sources of energy into conventional sources and non-conventional sources.
(Coal, Electricity, Wind energy, Solar energy, Petroleum, Tidal energy)
Answer:
1. Conventional source files

• Coal
• Petroleum
• Electricity

2. Non-conventional sources

• Solar energy
• Tidal energy
• Wind energy

Question 4.
List various non-commercial sources of energy?
Answer:
Various non-commercial source of energy are :

• solar energy
• wind energy
• tidal energy
• energy from firewood
• energy from vegetable waste
• energy from dried dung

Question 5.
What are the three basic sources of generating power?
Answer:

1. Hydroelectricity
2. Thermal electricity
3. Nuclear electricity

Question 6.
List the six system of Indian medicine.
Answer:
Six system of Indian medicine are :

1. Ayurveda
2. Yoga
3. Siddha
4. Unani
5. Homeopathy
6. Naturopathy

Question 7.
Explain the term ‘infrastructure’.
Answer:
Infrastructure is the support system on which the sufficient working of a modern industrial economy depends. It is the physical framework which is essential for giving services to people such as roads, railways, airports, ports, dam, power stations, telecommunication educational and health facilities, etc. Infrastructure consists of services like banking, communication, transport, irrigation, power, etc. These are very essential for production of goods.

Question 8.
Name different types of energy?
Answer:
The different types of energy are:

• Coal
• Petroleum
• Natural gas
• Bioenergy
• Solar energy
• Atomic energy

Question 9.
Categorize the following as elements of economic infrastructure and social infrastructure.
[Canals, Houses, schools and colleges, railways, ships, hospitals, banks, courts, power plants, satellite stations],
Answer:

Question 10.
Justify that energy crisis can be overcome with the use of renewable sources of energy.
Answer:
There are two sources of energy namely, commercial and noncommercial. Noncommercial sources are firewood, agricultural waste, and dried dung. These are noncommercial as they are found in nature. Commercial sources of energy like grass hay, twigs and small branches of a tree, sundried cow dung cakes are generally renewable.

More than 60 percent of Indian households depend on these traditional sources of energy for meeting regular cooking and heating needs. The energy crisis can be overcome with the use of renewable sources of energy.

Plus One Economics Infrastructure Four Mark Questions and Answers

Question 1.
Write the names of four atomic energy plants in India.
Answer:

1. Atomic energy power plant at Tarapur
2. Atomic energy power plant at Narora
3. Atomic energy power plant in Kalapakkam (Chennai)
4. Atomic energy power plant at Rana Pratap Sagar Dam (Kota)

Question 2.
Write a note on ISM.
Answer:
Indian Systems of Medicine (ISM):
It includes six systems: Ayurveda, Yoga, Unani, Siddha, Naturopathy, and Homeopathy (AYUSH). At present, there are 3,004 ISM hospitals, 23,028 dispensaries and as many as 6,11,431 registered practitioners in India. But little has been done to set up a framework standardize education or to promote research.tSM has huge potential and can solve a large part of our health care problems because they are effective, safe and inexpensive.

Question 3.
Kerala is experiencing huge energy crisis. Suggest some measures for solving the problem.
Answer:
More public investment, better research and development efforts, exploration, technological innovation and use of renewable energy sources can ensure solution of energy crisis in Kerala. Though the private sector has made some progress, it is necessary to tap this sector to come forward and produce power on a large scale.

One also has to appreciate the efforts made in this regard. More efforts and encouragement should be given by the government for the widespread use of wind, solar and tidal energy production in the state. Moreover, greater reliance on renewable energy resources offers enormous economic, social and environmental benefits.

Question 4.
Analyze the state of health infrastructure in India citing facts and figures.
Answer:
India has built up a vast health infrastructure and manpower at different levels since independence. At the village level, a variety of hospitals have been set up by the government. India also has a large number of hospitals run by voluntary agencies and the private sector.

These hospitals are manned by professionals and paramedical professionals trained in medical, pharmacy and nursing colleges. Since independence, there has been a significant expansion in the physical provision of health services.

During 1951-2000, the number of hospitals and dispensaries increased from 9,300 to 43,300 and hospital beds from 1, 2 to 7.2 million during 1951 – 99, nursing personnel increased from 0.18 to 8.7 lakh and allopathic doctors from 0.62 to 5.0 lakh. Expansion of health infrastructure has resulted in the eradication of smallpox, guinea worms and the near eradication of polio and leprosy.

Question 5.
Differentiate between commercial and noncommercial sources of energy.
Answer:
Commercial sources of energy:
Commercial sources of energy include coal, petroleum, and electricity. They could be bought and sold. They are generally exhaustible in nature. More than 60 percent of Indian households depend on the traditional source of energy.

Non-commercial sources of energy include firewood, agricultural waste, and dried dung. They are found in nature or forests. Lesser number of persons use these resources.

Question 6.
Point out the connection between consumption of energy and economic growth?
Answer:
The central issue has been whether economic growth stimulates consumption of energy or is energy consumption itself a stimulus for economic growth. But whatever may be the causal relationship between energy consumption and economic growth of a nation, they are both closely related.

Since energy is an essential input of all productive activities, agricultural or industrial, the process of economic development inevitable demands increasing levels of energy consumption. The higher the degree of economic growth, the higher is the consumption of energy and vice versa. Thus energy consumption is an important indicator of economic growth.

Electricity is one of the most critical infrastructures that determines economic development of a country. The growth rate of demand for power is generally higher than GDP growth rate. In order to have an 8 % GDP growth rate per annum, the power supply needs to grow around 12% annually. This shows that the rates of consumption of energy and economic growth are connected.

Plus One Economics Infrastructure Five Mark Questions and Answers

Question 1.
‘Infrastructure facilities boost production’ Do you agree? Substantiate your answers.
Answer:
Infrastructure facilities boost production in the following manner.
1. Infrastructure provides support services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.

2. Infrastructure facilities include roads, railways, ports, airports, dams, power stations, oil and gas pipelines, telecommunication facilities, educational systems, health systems, monetary systems, etc. It is the support system on which depends the efficient working of a modern industrial economy.

3. Modem agriculture largely depends on infrastructure for speedy and large scale transport of seeds, pesticides, fertilizers, and the produce by making use of modem roadways, railways, and shipping facilities.

4. Infrastructure contributes to the economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

Question 2.
“Infrastrucure contribute to the economic development of a country like india” Do you agree? Justify.
Answer:
Yes, I agree with the statement that infrastructure contribute to the economic development of a country like India. The reason why infrastructure is an essential precondition for economic development are pointed out below.

1. Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

2. Inadequate infrastructure can have multiple adverse effects on health. Improvements in water supply and sanitation have a large impact by reducing morbidity from major waterborne diseases and reducing the severity of disease when it occurs.

3. In addition to the obvious linkage between water and sanitation and health, the quality of transport and communication infrastructure can affect access to health care.

4. Infrastructure is in itself a source of employment for the large labour force of developing economies like India.

Question 3.
Suggest the progammes to increase the effectiveness of health care system.
Answer:
The following are the progammes to increase the effectiveness of health care system

• Public health facilities should be decentralized
• People should be educated about the nature, causes, and remedies of general diseases
• People should be made aware about sanitation facilities, cleanliness, immunization, etc.
• Efforts should be taken to develop health infrastructure
• Primary health care facilities should be strengthened
• Private-public participation in health care system should be encouraged

Question 4.
“India’s power sector faces some challenges today”. Do you agree? If yes mention the challenges.
Answer:
agree with the statement that India’s power sector faces some challenges today.
Some of the challenges that India’s power sector faces today are:

1. India’s installed capacity to generate electricity is not sufficient to feed an annual economic growth of 7 percent. In order to meet the growing demand for electricity, between 2000 and 2012, India needs to add 1,00,000 MW of new capacity, whereas, at present, India is able to add only 20,000 MW a year. Even the installed capacity is underutilized because plants are not run properly

2. State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed Rs 500billion. This is due to transmission and distribution losses, wrong pricing of electricity and other inefficiencies. Some scholars also say that distribution of electricity to farmers is the main reason for the losses; electricity is also stolen in different areas which also adds to the woes of SEBs

3. Private sector power generators are yet to play their role in a major way same is the case with foreign investors

4. There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country
Thermal power plants which are the mainstay of. India’s power sector are facing a shortage of raw material and coal supplies.

Question 5.
There are some drawbacks in our health care system. Do you agree? Substantiate.
Answer:
Yes, I agree with these statements
The Indian constitution assign, the state, the responsibility of raising the level of nutrition and the standard of living of its people and the improvement of public health. However, the National Health Policy lacks specific measures to achieve broad state goals. The government expenditure on health sector is 5% of total GDP. This is very low compared to other countries.

At present, less than 0% of the population utilises public health facilities However only 38% of the Public Health Centres (PHCs) have the required number of doctors and only 30% of the PHCs have sufficient stock of medicines. The people living in Rural areas do not have sufficient medical infrastructure.

There is shortage of beds, doctors and basic diagnostic facilities in rural areas. This has led to regional inequality in health services. Thus, it can be concluded that there are some draw-backs in our health care system.

Plus One Economics Infrastructure Eight Mark Questions and Answers

Question 1.
Prepare a seminar report on “energy and health infrastructure”.
Answer:
“Energy and health infrastructure”
Introduction:
The plus one commerce batch of (Name of school) conducted a seminar on the topic “Energy and health infrastructure” on 12/09/2018 at 11.0 a.m with the ample guidance of our economics teacher. Our class was divided into three groups to cover the entire area of the topic.

The first group explained the meaning and relevance of infrastructure, the second group explained the energy infrastructure and the third group presented their idea on health infrastructure. They focused on the area given to them and the group leader presented the seminar paper after required preparation.

Content:
Infrastructure:
Infrastructure is the support system on which depends the efficient working of a modern industrial economy. Modern agriculture also largely depends on it for speedy and largescale transport of seeds, pesticides, fertilizers, and the products by making use of modern roadways, railways and shipping facilities.

Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

1. Energy:
Energy is a critical aspect of the development process of a nation. It is, of course, essential for industries. Now it is used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides and farm equipment. It is required in houses for cooking, household lighting, and heating.

There are commercial and non-commercial sources of energy. Commercial sources are coal, petroleum, and electricity as they are bought and sold. They account for over 50 percent of all energy sources consumed in India. Noncommercial sources of energy are firewood, agricultural waste, and dried dung.

These are noncommercial as they are found in nature/forests. Both commercial and noncommercial sources of energy are known as conventional sources of energy. There are three other sources of energy which are commonly termed as nonconventional sources solar energy, wind energy, and tidal power.

The most visible form of energy, which is often identified with progress in modern civilization, is power, commonly called electricity; it is one of the most critical components of infrastructure that determines the economic development of a country. The growth rate of demand for power is generally higher than the GDP growth rate.

Studies point that in order to have8 percent GDP growth per annum, power supply needs to grow around 12per cent annually. Electricity is a secondary form of energy produced from primary energy resources including coal, hydrocarbons, hydro energy, nuclear energy, renewable energy, etc. Primary energy consumption takes into account the direct and indirect consumption of fuels.

2. Health:
Health is not only absence of disease but also the ability to realize one’s potential. It is a yardstick of one’s wellbeing. Health is the holistic process related to the overall growth and development of the nation. Development of health infrastructure ensures a country of healthy manpower for production of goods and services.

In recent times, scholars argue that people are entitled to health care facilities. It is the responsibility of the government to ensure the right to healthy living. Health infrastructure includes hospitals, doctors, nurses and other paramedical professionals, beds, equipment required in hospitals and a well developed pharmaceutical industry.

Conclusion:
All the three groups presented their topics with necessary facts and figures. After the presentation, there was a question-answer session. The active participation of everyone made this session live and interesting. On the whole, the seminar was a big success.

Students can Download Chapter 7 Employment-Growth, Informalisation and Related Issues Questions and Answers, Plus One Economics Chapter Wise Questions and Answers helps you to revise the complete Kerala State Syllabus and score more marks in your examinations

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 7 Employment-Growth, Informalisation and Related Issues

Plus One Economics Employment-Growth, Informalisation and Related Issues One Mark Questions and Answers

Question 1.
Some instances of people engaging in economic activity in given below. Identify worker from there.
Answer:
(a) A man who temporarily abstains from work due to illness.
(b) A woman is paid by her employer.
(c) A self-employed farmer.
(d) All the above
Answer:
(d) All the above

Question 2.
Which among the activity?
(a) Trade
(b) Transportation
(c) Construction
(d) Mining
Answer:
(d) Mining

Question 3.
Which organisation is responsible for estimating unemployment in India?
(a) ILO
(b) NSSO
(c) NitiAayog
(d) None of these
Answer:
(b) NSSO

Question 4.
Identify the activity not included in secondary sector.
(a) Quarrying
(b) Manufacturing
(c) Construction
(d) Water supply
Answer:
(a) Quarrying

Question 5.
Choose the correct answer Workforce refers to that part of:
(a) labour force which is employed
(b) population which is employed
(c) population which is forced to work
(d) labour force which is employed
Answer:
(a) labour force which is employed

Question 6.
Name the sector in the main source of employment for the majority of workers in India.
(a) Primary Sector
(b) Secondary Sector
(c) Service Sector
(d) Tertiary sector
Answer:
(a) Primary Sector

Question 7.
Who developed the concept of unemployment in India?
Answer:
National Sample Survey Organisation (NSSO) has developed the concepts of unemployment suitable to Indian conditions.

Question 8.
The newly emerging jobs are found mostly in the …………. sector (Service/agriculture/manufacturing).
Answer:
Service.

Question 9.
Name the main sector providing maximum employment in India?
(a) Agriculture
(b) Industry
(c) Service
(d) None of these
Answer:
(a) Agriculture sector/primary sector.

Plus One Economics Employment-Growth, Informalisation and Related Issues Two Mark Questions and Answers

Question 1.
Meena is a housewife. Besides taking care of household duties, she works in a cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Answer:
Meena’s activities in the cloth shop owned by her husband are not considered as the activity of a worker since she is not paid for her service. If she works in the shop owned by some other person and is paid for her services then she will be considered as a worker.

Question 2.
List any five activities that contribute to national income in India.
Answer:
The activities that contribute to national income in India are:

• farming
• trading
• mining
• treatment of a doctor in hospital
• manufacturing
• forestry

Question 3.
Distinguish between usual status and weekly status?
Answer:
Usual status refers to a situation where a person usually spends majority of his time in work. In India, 183 days of work is a standard cutoff per usual status. On the other hand, if the person is found to be a part of the workforce during the stipulated week, he will be considered as employed by weekly status.

Question 4.
Given below some economic activities. Classify them as primary, secondary and tertiary sector activities. Agriculture, Mining and Quarrying, Manufacturing, Electricity Gas and Water Supply Construction, Trade, Transport and Storage, Services.
Answer:
1. Primary sector

• Agriculture
• Mining and Quarrying

2. Secondary sector

• Manufacturing
• Electricity, Gas and Water Supply
• Construction

3. Tertiary sector

• Trade
• Transport and Storage
• Services

Question 5.
What is a worker-population ratio?
Answer:
Worker population ratio is the percentage of total population engaged in work. When the total number of workers is divided by population and multiplied by 100, we get the worker – population ratio.
Worker population ratio = \(\frac{\text { Total number of workers }}{\text { Population }} \times 100\)

Question 6.
Write a short note on RLEGP.
Answer:
RLEGP stands for Rural Landless Employment Guarantee Programme. It was introduced in August 1983. This programme guarantees employment to at least one members of every landless family up to 100daysin a year.

Plus One Economics Employment-Growth, Informalisation and Related Issues Three Mark Questions and Answers

Question 1.
Match the following

A	B
Primary sector	school teacher
Secondary sector	Farmer
Tertiary sector	Welder in a factory

Answer:

A	B
Primary sector	Farmer
Secondary sector	Welder in a factory
Tertiary sector	Schoolteacher

Question 2.
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Answer:
Raj, when he is busy in his farm contributes to production but he is not paid for his work. He helps his parents in agricultural jobs. As he is not paid, he is not a paid worker.

Question 3.
Kerala economy is experiencing huge unemployment problems. Similarly, the number of workers from outside Kerala are visiting our states and engaging in different activities. What do you infer from this? Justify your answer.
Answer:
In Kerala there exists problem of unemployment, especially educated unemployment. The educated people are usually unwilling to engage in manual works and therefore prefer white color jobs. They often go outside the state and even abroad to find a suitable job in accordance with their education level. At the same time, the usual works in the state are done by people coming from outside the state.

Plus One Economics Employment-Growth, Informalisation and Related Issues Four Mark Questions and Answers

Question 1.
Name some of the recent employment generation programmes launched by the Govt, of India.
Answer:
Following are some of the recent employment generation programmes launched by the Govt, of India.

• Rural Landless employment Guarantee programme (RLEGP)
• National Rural Employment Guarantee programme (NREGP)
• Bharat Nirman Programme
• Janani Suraksh%JTojana

Question 2.
Distinguish between open unemployment and technical unemployment?
Answer:
When the country’s labour force does not get opportunities for gainful employment, it is termed as open unemployment. On the other hand technical unemployment refers to persons who have been thrown out of work by the introduction of superior technology.

Question 3.
Classify the following into organized sector and unorganized sector.
Street vender, school teacher, business executive, agricultural labourer, mechanic, railway ticket examiner, college professor, software engineer, head load worker, cart puller, washerman.
Answer:
1. Organized sector:

• Schoolteacher
• Business executive
• Mechanic
• Railway ticket examiner
• College professor
• Software engineer

2. Unorganized sector:

• Street vender
• Agricultural labourer
• Head load worker
• Cart puller
• Washerman

Question 4.
Analyze the recent trends in sectoral distribution of workforce in India.
Answer:
Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only 16% of workforce. About 24% of workers are in service sector. More than three – fourth of the workforce in the rural India depends on agriculture and mining. About 10% of the rural workers are working in manufacturing industries, construction and other sectors.

Service sector provides employment to only about 13% of rural workers. About 60% of urban workers are in the service sector. The secondary gives employment to about 30% of the urban workforce. Women workers concentration is very high in primary sector. Men get opportunities in both secondary and services sectors.

Question 5.
Prepare a note on NREGP.
Answer:
The government of India passed an Act in Parliament known as the National Rural Employment Guarantee Act 2005. As a result of this act, the employment generation programme known as National Rural Employment Guarantee Programme (NREGP) came into existence. By 2008, it has been extended to all the districts of the country.

lt promises 10Odays of guaranteed wage employment to all adult members of rural households who volunteer to do unskilled manual work. The families, which are living below poverty line, will be covered under the scheme. This scheme is one of the many measures that the government implements to generate employment for those who are in need of jobs in rural areas.

Plus One Economics Employment-Growth, Informalisation and Related Issues Five Mark Questions and Answers

Question 1.
The following table shows Worker-Population Ratio in India during 1999-2000.

1. Analyze the table
2. Give reasons for the findings

Answer:
1. It shows the different levels of participation of people in economic activities. For every 100 persons, about 40 (by rounding off 39.5) are workers in India. In urban areas, the proportion is about 34 whereas in rural India, the ratio is about 42.

2. People in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. Even if some go, they discontinue in the middle to join the workforce; whereas, in urban areas, a considerable section is able to study in various educational institutions.

Urban people have a variety of employment opportunities. They look for the appropriate job to suit their qualifications and skills. In rural areas, people cannot stay at home as their economic condition may not allow them to do so.

Question 2.
Suggest the measures to be adopted to solve the problem of unemployment in India?
Answer:
Measures to solve the unemployment in India are suggested as follows.

1. Investment in heavy and basic industries and consumer goods industries should be increased. They should provide more employment with the supply consumer goods.
2. Cottage and small scale industries should be developed because they provide more employment by adopting labour intensive technique.
3. Educational System should be changed. Emphasis should be given to vocational education.
4. Means of transport and communication should be developed.
5. Rapidly rising population should be checked by adopting family planning and welfare schemes,
6. Rural work programme should be developed.
7. Youth enterpreneurs should be financed for self-employment.
8. Infrastructure of the economy should be increased.

Question 3.
How far formal sector is differentiated from informal sector? Point out some of the benefits of working in the formal sector. Analyze the informalization found among the Indian workforce.
Answer:
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.

Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers.

There are several benefits enjoyed by the workers in the formal sector. Some of them are :

• Those who are working in the formal sector enjoy social security benefits.
• They earn more than those in the informal sector.
• Developmental planning envisaged that as the economy grows, more and more workers would become formal sector workers and the proportion of workers engaged in the informal sector would dwindle.

We learn that there are about 400 million workers in the country. There are about 28 million workers in the formal sector. That is only about seven per cent (28/400 × 100). Thus, the rest 93 per cent are in the informal sector. Out of 28 million formal sector workers, only 4.8 million, that is, only 17 percent (4.8/28 × 100) are women.

In the informal sector, male workers account for69 per cent of the workforce Since the late 1970s, many developing countries, including India, started paying attention to enterprises and workers in the informal sector as employment in the formal sector is not growing.

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. Workers of this sector live in slums and are squatters.

Question 4.
Discuss causes responsible for unemployment in India.
Answer:
The causes responsible for unemployment in India may be discussed below.
1. Slow economic growth:
The nature of Indian economy is underdeveloped and the rate of economic growth is slow. This causes lower employment opportunities to the rising population.

2. Rapid Growth of Population:
Constant increase in population has been a great problem of India. It is one of the main causes of unemployment. Despite the completion of nine Five Year Plans, the number of unemployed has actually increased inspite of decreasing.

3. Agriculture:
A Seasonal Occupation: Agriculture is so underdeveloped in India that it largely offers seasonal employment. Most of the farmers remain idle for three to four months in a year. The volume of disguised unemployment is estimated to be nearly 15 percent of the total working population in agriculture.

4. Lack of Irrigation Facilities:
Despite the completion of Nine Five Year Plans, irrigation facilities could be provided only to 34 percent of agriculture area. For want of irrigation only one crop is grown in a year on the large part of agricultural land. Consequently, the farmers remain unemployed for quite sometime during the year.

5. Joint Family Systme:
It encourages disguised unemployment. Joint family system is more prevalent in rural areas; hence a high degree of disguised unemployment exists there.

6. Decline of Cottage and Small Industries:
The industrial development policy adopted by the Britishers adversely affected the artisans working in small and cottage industries. The goods previously produced by these industries are now being produced by large scale industries.

These artisans were, therefore, thrown out of employment. After Independence, Government of India has been taken several measures to revive and develop small scale and cottage industries, but still, these continue to be in distress.

7. Low Savings and Investment:
There is shortage of capital in India, and even the scarce capital has not been wisely invested. Bulk of the capital has been invested in large scale industries with high capital-output ratio needing more capital per unit of output.

8. Mobility of Labour:
Mobility of labour in India is very low. Owing to their attachment to the family, people generally do not move out to far off areas even when jobs are available there. Factors like diversity of language, religion and customs also contribute to low mobility. Lesser the mobility, greater the unemployment.

You can Download Nature and Purpose of Business Questions and Answers, Notes, Plus One Business Studies Chapter Wise Questions and Answers Kerala Chapter 1 help you to revise complete Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Chapter Wise Questions and Answers Chapter 1 Nature and Purpose of Business

1 Mark Questions and Answers

Plus One Business Studies Malayalam Notes Question 1.
State examples of Analytical industries.
Answer:
Petrol, diesel

Question 2.
Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of them
Answer:
(b) Secondary

Plus One Business Studies Chapter wise Question Papers Question 3.
Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport
Answer:
(a) Mining

Plus One Business Studies Important Questions and Answers Question 4.
The industries which provide support services to
other industries are known as …….
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries.
Answer:
(d) Tertiary industries

Question 5.
Which of the following cannot be classified as an objective of business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning
Answer:
(a) Investment

Plus One Business Studies Important Question 6.
Business risk is not likely to arise due to
(a) Changes in government policy
(b) Good management
(c) Employee dishonesty
(d) Power failure
Answer:
(b) Good management

Question 7.
Mr. Abu produces wheat for personal consumption. Will it be a business activity?
Answer:
No. It is not for performed for earning profit.

Question 8.
The human activities that are undertaken with an objective to earn money or livelihood are called ……….
Answer:
Economic Activities.

Question 9.
Activities undertaken to derive mere satisfaction are known as ……..
Answer:
Non-Economic Activities.

Question 10.
The activity is undertaken primarily to satisfy social, religious or cultural requirements of human beings. Which is this activity?
Answer:
Non economic activity

Question 11.
Classify the following activities into Economic and Non-Economic activities ………

1. Running a stationery shop
2. Conducting a seminar
3. Operating a Cine house
4. Watching television

Answer:

1. Running a stationary shop – Economic activity
2. Playing cricket – Non-economic activity
3. Operating a cine house – Economic activity
4. Watching television – Non-economic activity

Question 12.
Identify the following activities ………..

1. A Person visit to the temple for daily prayers.
2. Driving a car for rent.
3. Running a Hotel.

Answer:

1. Non-economic activity
2. Economic activity
3. Economic activity

Question 13.
Identify the nature of activities of the following persons on the basis of economic and non-economic activities.

1. Teacher in a School
2. Gardener
3. Housewife
4. Social Worker
5. Businessman
6. Doctor

Answer:

1. Economic activity
2. Economic activity
3. Non-economic activity
4. Non-economic activity
5. Economic activity
6. Economic activity

Question 14.
Below are given certain non-economic activities. Convert them into economic activities.
Example: A nurse attending her ailing son. (Non-economic activity)
A nurse attending patients in her hospital. (Economic activity)

1. A person working in his own garden.
2. A lady preparing food for her husband.
3. A man white-washing his own house.
4. A teacher teaching his son at home.
5. A chartered accountant preparing his own accounts.

Answer:

1. A person working in a school garden.
2. A lady preparing food in a restaurant.
3. A man white-washing the building of a trade centre.
4. A teacher teaching students in a school.
5.  A chartered Accountant preparing accounts of a firm.

Question 15.
Find the odd one
(a) Teaching in a school
(b) Practicing in a court
(c) Praying in a church
(d) Running a hotel
Answer:
(c) Praying in a church

Question 16.
The occupation in which people work for others and get remunerated in return is known as ………..
(a) Business
(b) Employment
(c) Profession
(d) None of them
Answer:
(b) Employment

Question 17.
…… is an economic activity performed for the purpose of earning profit.
Answer:
Business

Question 18.
……. is an occupation involving the provision of personal services of a specialized and expert nature.
Answer:
Profession

Question 19.
……. is an index of performance of business
Answer:
Profit

Question 20.
Complete the following on the basis of given hint
Profession: Fee
Business: ………
Employment: ………
Answer:
Business: Profit
Employment: Salary

Question 21.
Which of the following does not characterize business activity?
(a) Production of goods and services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary or wages
Answer:
(d) Salary or wages

Question 22.
Identify the type of activity the following person is doing:-
(a) Alex is an advocate
(b) Balan works in an organization as an Accountant
(c) Chandran buys goods from Banglore and sells in Kerala
(d) David is a doctor and has his own Hospital
Answer:
(a) Profession
(b) Employment
(c) Business
(d) Profession

Question 23.
Identify the following activities and give reason.
(a) A Chartered Account work in a company
(b) A Chartered Account runs a firm
Answer:
(a) Employment
(b) Profession

Question 24.
Identify the type and reward of this activity. Balabhasker, a doctor in a medical college
Answer:
Employment. The reward for employment is salary

Question 25.
Ajith running an internet cafe. Identify the economic activity mentioned here.
Answer:
Business

Question 26.
Mr. Shyam sold his own house for ? 5 lakhs, which is purchased for ? 4 lakhs. Decide whether it is a business activity or not.
Answer:
No. It is not a business activity

Question 27.
Complete the following equation:
Commerce = + Aids to trade
(a) Service
(b) Industry
(c) Business
(d) Trade
Answer:
(d) Trade

Question 28.
……. is the process of buying and selling of goods and services.
Answer:
Trade

Question 29.
Thajudeen, a businessman from Japan purchased goods worth ₹ 5,00,000 from Kumar associates of India. Can you identify which type of trade was conducted between Thajudeen and Kumar associates?
Answer:
Export trade.

Question 30.
Trade between Bombay and Chennai is an example of ……Trade.
Answer:
Home trade

Question 31.
Buying and selling of goods between different countries are called …….
Answer:
Foreign Trade

Question 32.
When trade takes place within the boundaries of a country, it is called ……..
Answer:
Internal trade.

Question 33.
…… is the process of selling goods to a foreign country.
Answer:
Export trade

Question 34.
When goods are purchased from a foreign country, it is known as ……
Answer:
Import trade

Question 35.
……. means importing of foreign goods from some countries to re-export them to other countries.
Answer:
Entrepot trade

Question 36.
When goods are bought in bulk from manufacturers/produces and sold in bulk to retailers is called ……..
Answer:
Wholesale trade

Question 37.
When goods are bought from wholesalers/produces and sold them to consumers is termed as …….
Answer:
Retail trade

Question 38.
Diary farming for milk is an example of ………. industry.
Answer:
Genetic.

Question 39.
Extraction of coal is an example of industries.
(a) Genetic
(b) Construction
(c) Extractive
(d) Manufacturing
Answer:
Extractive industry

Question 40.
Time utility is created by
(a) transport
(b) warehousing
(c) insurance
(d) person
Answer:
(b) warehousing

Question 41.
Complete the following
Removing the hindrance of knowledge: Advertising
Removing the hindrance of time:?
Answer:
Warehousing

Question 42.
Hindrance of knowledge in the exchange of goods are removed by ………
Answer:
Advertisement

Question 43.
……. removes hindrance of person.
Answer:
Trade

Question 44.
……. removes hindrance of place.
Answer:
Transport

Question 45.
……. removes hindrance of risk.
Answer:
Insurance

Question 46.
……… removes hindrance of finance.
Answer:
Banking

2 Mark Questions and Answers

Question 1.
Explain any two business activities which are auxiliaries to trade.
Answer:
Auxiliaries to Trade (Aids to trade)
Activities which assist trade are called aids to trade or auxiliaries to trade.

1. Transport & Communication:-
Transport facilitates movement of raw material to the place of production and the finished products from factories to the place of consumption. Communication helps the producers, traders, and consumers to exchange information with one another.

2. Banking & Finance:-
Banking helps business activities to overcome the problem of finance. Commercial banks lend money in the form of overdraft, cash credit, loans, and advances, etc… and they also provide many services required for the business activity.

3. Insurance:-
The goods may be destroyed while in the production process or in transit due to accidents, or in storage due to fire or theft, etc. Insurance provides protection in all such cases.

4. Warehousing:-
The goods should be stored carefully from the time they are produced until the time they are sold. This function is performed by warehouses.

5. Advertising:-
Advertising helps in providing information about available goods and services and create in them a strong desire to buy the product.

Plus one Business Studies Question 2.
Abhijith owns an old car. He sells it and buys a new car. While Ajith purchases a few cars for selling at an assured profit. Do Abhijith and Ajith engage in business activities? Give reason.
Answer:
The activity of Abhjith is not a business activity. But we can say Mr. Ajith engages in business activities. Business is a continuous activity, so there must be regularity in its dealings and its ultimate objective is earning profit. Abhijith’s transaction is casual. So it is not a business activity.

Question 3.
Find the odd one.

1. Regularity in service / getting salary/service contract between employer and employee / huge capital investment
2. Earning profit / innovation / effective utilization of resources / Appointment letter

Answer:

1. Huge capital investment – others are features of employment
2. Appointment letter – others are objectives of business

Plus One Business Question 4.
State any two characteristics of ‘business’.
Answer:
Business:-
Business may be defined as an economic activity involving the production or purchase and sale of goods and services with the main object of earning profit by satisfying human needs in the society.

Characteristics of business

1. Business is an economic activity with the object of earning profit.
2. Business includes all the activities concerned with the production or procurement of goods and services.
3. There should be a sale or exchange of goods and services for the satisfaction of human needs.
4. Business involves dealings in goods or services on a regular basis. Normally, one single transaction of sale or purchase is not treated as a business.
5. One of the main objectives of business is to earn maximum profit.
6. Business involves risk and uncertainty of income. Risk means the possibility of loss due to change in consumer taste and fashion, strike, lockout competition, fire, theft, etc.

Question 5.
The terms both industry and commerce related to business. As a student how do you correlate these two terms in the business?
Answer:
Business activities can be classified into two. They are Industry and commerce. Industry involves production or processing of goods meant for consumption or for production of other products. Business is a broader term than commerce. Commerce is the sum total of those processes which are engaged in the removal of hindrances of person, place and time in the exchange of commodities. Commerce includes all activities ensuring the free flow of goods and services from the producer to the consumer.
Commerce = Trade + aids to trade.

Question 6.
Define Commerce.
Answer:
Commerce is the sum total of all activities involving the removal of hindrances in the process of exchange of goods and services and facilitates the availability for consumption. So it consists of trade and other support services that facilitate trade.

3 Mark Questions and Answers

Question 1.
Find the ‘odd one’ and state the reason.

1. Teaching in a school, Practising in a court, Praying, Running a hotel.
2. Regularity, Body of knowledge, Profit motive, Heavy Risk.
3. No capital, Salary, Freedom of work, Service agreement.

Answer:

1. Praying – All others are economic activities.
2. Body of knowledge – All others are features of Business.
3. Freedom of work – All others are features of employment.

Question 2.
Complete the following table with the help of the hints given below.

Question 3.
Identify the following activities and give reason.

1. A doctor works in a Government hospital
2. A doctor runs his own clinic.
3. A doctor treats his own family members.

Answer:

1. Employment – Here, the doctor works for others, on a regular basis and gets a salary for his service.
2. Profession – Here, the doctor is rendering services for others and gets fees for his service
3. Non-economic activity – Here, no monetary benefit is derived but mental satisfaction.

Question 4.
Compare business with profession and employment.
Answer:
Comparison of Business, Profession, and Employment.

Classification of Business Activities
Business activities may be classified into two categories –

1. Industry
2. Commerce.

Chart showing business activities

Question 5.
Match column A with column B and column C

A	B	C
Business	Wages / Salary	Qualification
Profession	Earn profit	Letter of appointment
Employment	Fees	Production and distribution

Answer:

A	B	C
Business	Earn profit	Production and distribution
Profession	Fees	Qualification
Employment	Wages / Salary	Letter of appointment

Question 6.
Explain the characteristics of business risk.
Answer:
Business Risks
The term ‘business risks’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.
Business enterprises may face two types of risk,

i.e. speculative risk and pure risk. Speculative risks involve both the possibility of gain as well as the possibility of loss. It a rise due to a change in demand, change in price, etc. Pure risks involve only the possibility of loss or no loss. The chance of fire, theft or strike is examples of pure risks.

Nature of Business Risks

1. Business risks arise due to uncertainties.
2. Risk can be minimized, but cannot be eliminated. It is an essential part of business.
3. Degree of risk depends mainly upon the nature and size of business:
4. Profit is the reward for risk-taking.

Causes of Business Risks
Business risks arise due to a variety of causes. They are:-
1. Natural Causes:-
it includes natural calamities like flood, earthquake, lightning, heavy rains, famine, etc.

2. Human Causes:-
Human causes include dishonesty, carelessness or negligence of employees, strikes, riots, management inefficiency, etc.

3. Economic causes:
These include change in demand, change in price, competition, technological changes, etc.

4. Political Causes:-
Change in Govt, policies, taxation, licensing policy, etc.

4 Mark Questions and Answers

Question 1.
Match the Following.

Answer:

Question 2.
Following is a list of activities. Classify these activities as Business, Profession or Employment

1. Policeman on duty at your local police station.
2. Teacher working in an educational institution.
3. A driver driving a bus of a State Road Transport Corporation.
4. A taxi-driver who runs his own taxi.
5. A fisherman selling fish in a village.
6. Gopal stitching cloth of the customers regularly at home.
7. A daily-wager working in a factory.
8. A gardener maintaining the lawns in a college.
9. A lawyer practicing in a court.
10. An engineer running his consultancy firm.

Answer:

1. Employment
2. Employment
3. Employment
4. Business
5. Business
6. Business
7. Employment
8. Employment
9. Profession
10. Profession

Question 3.
Mr. Jagajeevanram, who is running a skin clinic, got his MBBS degree and MD degree from Kerala University. Rahul has been working as an attender in the clinic for the last five years. After having this experience, he started his own clinic for skin diseases.
(a) Is it possible to start a clinic legally in his own name? Why?
(b) What are the essentials to run such an organization?
Answer:
(a) No. Mr. Rahul cannot start legally the clinic in his own name because he has no professional qualification and training,
(b) The essentials to run such an organization are:-

1. There must be specialized knowledge and skill, i.e. MBBS degree approved by Medical Council of India.
2. Formal training.
3. Membership in Indian Medical Association (IMA)
4. Follow the code of conduct enforced by IMA
5. Charging fee for service.

Question 4.
The following are some examples of industries
Fishing                           Textile industry
Bridge construction       Poultry farming
Limestone mining         Animal husbandry
Cement factory             Building works
Classify these industries under suitable heads.
Answer:
Extractive industry          Fishing, Limestone
Genetic industry              Poultry farming, Animal husbandry
Manufacturing industry   Textile industry, Cement industry
Construction industry      Bridge construction, Building works

Question 5.
Explain the concept of business risk and its causes.
Answer:

Business Risks
The term ‘business risks’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.
Business enterprises may face two types of risk,

i.e. speculative risk and pure risk. Speculative risks involve both the possibility of gain as well as the possibility of loss. It a rise due to a change in demand, change in price, etc. Pure risks involve only the possibility of loss or no loss. The chance of fire, theft or strike is examples of pure risks.

Nature of Business Risks

1. Business risks arise due to uncertainties.
2. Risk can be minimized, but cannot be eliminated. It is an essential part of business.
3. Degree of risk depends mainly upon the nature and size of business:
4. Profit is the reward for risk-taking.

Causes of Business Risks
Business risks arise due to a variety of causes. They are:-
1. Natural Causes:-
it includes natural calamities like flood, earthquake, lightning, heavy rains, famine, etc.

2. Human Causes:-
Human causes include dishonesty, carelessness or negligence of employees, strikes, riots, management inefficiency, etc.

3. Economic causes:-
These include change in demand, change in price, competition, technological changes, etc.

4. Political Causes:-
Change in Govt, policies, taxation, licensing policy, etc.

5 Mark Questions and Answers

Question 1.
Explain different types of manufacturing industries.
Answer:
Industry
Industry refers to economic activities, which are connected with the conversion of resources into useful goods. Industries may be divided into 3 categories. They are

1. Primary industries:-
Primary industries are connected with the extraction and production of natural resources and reproduction and development of living organisms, plants, etc. Such industries are further divided into two.

Extractive industries:-
These industries extract products from natural resources. E.g. mining, farming, hunting, fishing, etc.

Genetic industries:-
These industries are engaged in activities like rearing and breeding of animals, birds, and plants. E.g. diary farming, paultry farming, floriculture, pisciculture, etc.

2. Secondary industries:-
Secondary industries deal with materials extracted at the primary stage. Such goods may be used for consumption or for further production. Secondary industries are classified into two. They are:-

(i)   Manufacturing industries:-
Manufacturing industries engage in converting raw materials into finished goods. E.g. Conversion of rubber into cotton, timber into furniture rubber into tires, etc. Manufacturing industries may be further divided into four categories. They are,

• Analytical industry which analyses and separates different elements from the same materials. E.g. Oil refinery
• Synthetical industry which combines various ingredients into a new product. E.g. cement
• Processing industry which involves successive stages for manufacturing finished products. Eg. Sugar and paper industry.
• Assembling industry which assembles different component parts to make a new product. E.g. television, car, computer, etc.

(ii)  Construction industries:-
These industries are involved in the construction of buildings, dams, bridges, roads, etc.

3. Tertiary industries:-
These are concerned with providing support services to primary and secondary industries. Eg. Transport, banking, insurance, warehousing, communication, advertising, etc.

Question 2.
Mr. Shyam is a leading advocate in Ernakulam. He is also working as a lecturer in a law college. Identify and distinguish with the activities in which Mr. Shyam is engaged.
Answer:
Profession and Employment. Comparison of Business, Profession, and Employment.

Classification of Business Activities
Business activities may be classified into two categories –

1. Industry
2. Commerce.

Chart showing business activities

Question 3.
The following are some examples of trade. Find the types of trade each of these belongs to.

1. Purchase of petroleum products by India from Iraq.
2. Purchase of fast-moving consumable goods from Bombay for sale in Kochi.
3. Sale of tea leaf to Gulf countries.
4. A provision store in a village.
5. A shop which deals in tea only in bulk quantity.

Answer:

1. Import trade
2. Internal trade
3. Export trade
4. Retail trade
5. Wholesale trade

Question 4.
Explain the features of business.

Business:-
Business may be defined as an economic activity involving the production or purchase and sale of goods and services with the main object of earning profit by satisfying human needs in the society.

Characteristics of business

1. Business is an economic activity with the object of earning profit.
2. Business includes all the activities concerned with the production or procurement of goods and services.
3. There should be a sale or exchange of goods and services for the satisfaction of human needs.
4. Business involves dealings in goods or services on a regular basis. Normally, one single transaction of sale or purchase is not treated as business.
5. One of the main objectives of business is to earn maximum profit.
6. Business involves risk and uncertainty of income. Risk means the possibility of loss due to change in consumer taste and fashion, strike, lockout competition, fire, theft, etc.

6 Mark Questions and Answers

Question 1.
Study of commerce is the study of Trade and Aids to Trade”. Evaluate this statement.
Answer:
Commerce includes Trade as well as Aids to Trade. Trade means exchange or buying and selling of goods. Classification of Trade 1. Internal 2. External
Activities which assist trade are called aids to trade. Classification of Aids to Trade

1. Transport
2. Communication
3. Insurance
4. banking
5. Advertising
6. Warehousing
7. Sales promotion

8 Mark Questions and Answers

Question 1.
Explain the factors to be considered before starting a business.
Answer:
Starting a Business – Basic Factors
Factors to be considered for starting a business
1. Selection of line of business:
The first thing to be decided by any entrepreneur of a new business is the nature and type of business to be undertaken.

2. Size of the firm:
If the market conditions are favorable, the entrepreneur can start the business at a large scale. If the market conditions are uncertain and risks are high, a small size business would be a better choice.

3. Choice of form of ownership:
The selection of a suitable form of business enterprise i.e. Sole proprietorship, Partnership or a Joint-stock company is an important management decision. It depends on factors like the nature of business, capital requirements, liability of owners, legal formalities, continuity of business, etc.

4. Location of business enterprise:
Availability of raw materials and labour, power supply and services like banking, transportation, communication, warehousing, etc., are important factors while making a choice of location.

5. Financing:
Proper financial planning must be done to determine (a) the requirement of capital, (b) source from which capital will be raised and (c) the best ways of utilizing the capital in the firm.

6. Physical facilities:
Availability of physical facilities including machines and equipment, building and supportive services is a very important factor to be considered at the start of the business.

7. Plant layout:
Layout means the physical arrangement of machines and equipment needed to manufacture a product.

8. Competent worked force:
Every enterprise needs competent and committed employees to perform various activities so that physical and financial resources are converted into desired outputs.

9. Tax planning:
The promoter must consider in advance the tax liability under various tax laws and its impact on business decision

Question 2.
The main objective of business is to earn profit through service. Explain the objectives of business in the light of this statement.
Answer:
Multiple Objectives of Business
The main objectives of a business are:-

1. Market standing:-
A business firm can succeed only when it has a good market standing. Market standing refers to the position of an enterprise in relation to its competitors.

2. Innovation:-
Innovation means developing new products or services or finding new ideas and new methods of production and distribution. Innovation accelerates the growth of an enterprise.

3. Productivity:-
Productivity is ascertained by comparing the value of output with the value of input. Every enterprise must aim at greater productivity through the best use of available resources.

4. Physical and financial resources:-
The business must aim at maximum utilization of available physical and financial resources, i.e. men, material, money, and machine in the best possible manner.

5. Earning Profit:-
Earning maximum profit is the primary objective of every business. Profit is required for the survival and growth of a business.

6. Manager performance and development:-
Efficient managers are needed to conduct and coordinate business activities. So it is the objective of an enterprise to implement various programs for motivating the managers.

7. Worker performance and attitude:-
Every enterprise must aim at improving its worker’s performance by providing fair salary, incentives, good working conditions, medical and housing facilities.

8. Social responsibility:-
It refers to the obligation of business firms to contribute resources for solving social problems and work in a socially desirable manner.

Question 3.
Explain with the help of a diagram, the different types of industries with suitable examples.
Answer:
Industry
Industry refers to economic activities, which are connected with the conversion of resources into useful goods. Industries may be divided into 3 categories. They are

1. Primary industries:-
Primary industries are connected with the extraction and production of natural resources and reproduction and development of living organisms, plants, etc. Such industries are further divided into two.

Extractive industries:-
These industries extract products from natural resources. E.g. mining, farming, hunting, fishing, etc.

Genetic industries:-
These industries are engaged in activities like rearing and breeding of animals, birds, and plants. E.g. diary farming, paultry farming, floriculture, pisciculture, etc.

2. Secondary industries:-
Secondary industries deal with materials extracted at the primary stage. Such goods may be used for consumption or for further production. Secondary industries are classified into two. They are:-

(i) Manufacturing industries:-
Manufacturing industries engage in converting raw materials into finished goods. E.g. Conversion of rubber into cotton, timber into furniture rubber into tires, etc. Manufacturing industries may be further divided into four categories. They are,

• Analytical industry which analyses and separates different elements from the same materials. E.g. Oil refinery
• Synthetical industry which combines various ingredients into a new product. E.g. cement
• Processing industry which involves successive stages for manufacturing finished products. Eg. Sugar and paper industry.
• Assembling industry which assembles different component parts to make a new product. E.g. television, car, computer, etc.

(ii) Construction industries:-
These industries are involved in the construction of buildings, dams, bridges, roads, etc.

3. Tertiary industries:-
These are concerned with providing support services to primary and secondary industries. Eg. Transport, banking, insurance, warehousing, communication, advertising, etc.