KSEEB Solutions Class 8 Economics Chapter 3 National Income And Sectoral Aspects Of The Indian Economy Points To Remember
National income refers to the total value of goods and services produced annually in a country. Simon Kuznets has defined national income as, “the net output of commodities and services flowing during the year from the country’s productive system in the hands of the ultimate consumers”. Naturally, national income indicates the size of the country’s productive system, the volume of consumption, savings, and investments made in various sectors as well as its transactions with other countries. However, unlike the measurement of individuals, The average income of the people of a country in a particular year is called per capita income (PCI) for that year. In India, the Central Statistical Organization (CSO) estimates and publishes the national income data.
Read and Learn More KSEEB Solutions for Class 8 Social Science
Any economy consists of many activities because people need various goods and services for consumption.
Many other goods are ‘manufactured’, i.e, raw materials are transformed into more useable and storable forms.
The quality of service depends upon the ability of the provider rather than the raw materials unlike in agricultural and manufacturing activities.
The primary sector consists of all nature-based activities like agriculture and allied activities like Sericulture, Horticulture, Animal husbandry, Poultry, Fishery, Floriculture, etc.
The secondary sector also called as manufacturing sector, converts raw materials into finished products.
The tertiary sector is also called Service Sector. It has been growing at a fast rate throughout the world including India.
The service sector is the largest contributor to the national income at 59% and employs about 28% of workers.
Small-scale industries are labor-intensive in character. They generate huge employment opportunities.
Small entrepreneurs stimulate the redistribution of wealth, income, and political power in a society.
The Government of India has taken many measures like Startup India, Standup India, MUDRA Bank, etc. to help small-scale industries.
A holding refers to the area of land cultivated by a household.
Supply of credit from formal sources like banks and co-operatives to the agricultural sector has been inadequate leading to greater borrowing from informal sources at a higher interest rate. Farmers should be guaranteed remunerative prices for their produce. For this purpose, markets and marketing infrastructure need to be strengthened.
An insurance scheme that covers and compensates the losses of farmers for all types of risks needs to be put in place.
Kseeb Solutions For Class 8 Economics Chapter 3 Pdf
Kseeb Solutions Class 8 Economics Chapter 3 Notes
National Income And Sectoral Aspects Of The Indian Economy Exercises
Fill in the blanks with a suitable word.
- Per capita income = National income divided by Total Population.
- The Agency responsible for the estimation of national income in India is Central Statistical Organization.
- The highest share in the national income of India today is from Tertiary Sector.
- Small-scale industries are defined in terms of investment.
- India’s agriculture is said to be Gamble with monsoons.
- The extent of irrigated areas in India is about 30 percent of the cultivated area.
Answer the following questions and discuss them in groups.
Question 1. Define national income.
Answer: National income refers to the total value of goods and services produced annually in a country.
Question 2. If the total income of a family of 5 members in 2015 was Rs. 567890, calculate the per capita income of the members of the family.
Answer: Percapita Income = National Income / Total population
Percapita Income = 5,67,890/5 = 1,13,578.
Question 3. State how small industries are helpful for the growth of a country like India.
Answer: There were 488.46 lakh enterprises working in the country in 2013-14, which employed 11.14 crores of people with a total investment of Rs. 13,63,700 crores. The share of MSMEs in the national income in 2013-14 was 7.8 percent. They account for 35% of the gross value of the output in the manufacturing sector, about 80% of the total industrial employment, and 40% of the total export of the country.
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Question 4. What are the reasons for the decline in the size of agricultural holdings in India?
Answer: As the population dependent on agriculture has increased, the holdings have been subdivided into smaller pieces. According to the Agricultural Census of 2011-12, small (1 to 2 hectare) and marginal (below 1 hectare) holdings together accounted for nearly 85 percent of all holdings. Further, the average size of holdings was just 1.16 hectares in 2011 -12. It is not possible to take up any kind of development work on such a small piece of land. The modem methods of production cannot be conveniently adopted. As a result, productivity is lower and farmers are poorer.
Class 8 Economics National Income And Sectoral Aspects KSEEB Notes
Question 5. Examine the reasons for the crisis in Indian agriculture.
Answer:
The reasons for the crisis in Indian agriculture are:
Uneconomic size of the cultivated holding.
High population pressure.
Rain-fed farming and recurrence of droughts.
Partial impact of the green revolution.
A decline in public investments in irrigation and other related infrastructure.
Inadequate credit from institutional sources.
Inability to get Remunerative Prices.
Question 6. Discuss the measures to overcome an agricultural crisis in India.
Answer:
Increasing public investment: There is an urgent need to step up the government investment in drought proofing, water harvesting, research in new varieties of seeds, new cultivation methods that use less water, and retain soil fertility, extension, and training of farmers in adoption of efficient crop production practices.
Expanding credit availability: The small and marginal farmers, who hesitate to approach a bank or any financial institution, should be ensured a greater amount of credit.
Marketing reforms: Farmers should be guaranteed remunerative prices for their produce. For this purpose, markets and marketing infrastructure need to be strengthened.
Crop Insurance: An insurance scheme that covers and compensates the losses of farmers for all types of risks needs to be put in place.
Counseling and moral support: There is a need to set up counseling centers at the village level to provide moral support to distressed farmers so that they do not resort to the extreme step of committing suicide.
Regulating private money lenders: Apart from the above, there is a need to regulate the activities of money lenders so that they do not oppress the poor farmers who have borrowed from them for various purposes.
Kseeb Class 8 Economics Chapter 3 Important Questions
National Income And Sectoral Aspects Of The Indian Economy Additional Questions And Answers
Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:
Question 1. The institute which estimates and publishes the national income data is
- The Central Statistical Organization
- Income tax department
- The National planning commission
- Finance Department of India
Answer: 1. The Central Statistical Organization
Question 2. The materials are transformed into more useable and storable forms is called
- Manufactured
- Raw materials
- Semi-finished
- Produce
Answer: 1. Manufactured
Question 3. Some services are more valuable as they
- Cannot be stored
- Are costly
- Are limited
- Are unlimited
Answer: 1. cannot be stored
Question 4. An Example of the primary sector is
- Sericulture
- Industries
- Transport
- Communication
Answer: 1. Sericulture
Kseeb 8th Standard Economics Chapter 3 Mcqs
Question 5. An Example of the secondary sector is
- Horticulture
- Animal husbandry
- Poultry
- power generation
Answer: 4. power generation
Question 6. The manufacturing sector is also called as
- Agrarian sector
- Secondary sector
- Tertiary sector
- Service sector
Answer: 2. Secondary sector
Question 7. The service Sector is also called
- Agrarian sector
- Secondary sector
- Tertiary sector
- Manufacturing sector
Answer: 3. Tertiary sector
National Income And Sectoral Aspects Of The Indian Economy Answer the following questions:
Question 1. The possession of natural resources will not decide the level of development. Justify.
Answer: African countries are less developed despite having rich natural resources. Thus, it is not merely the possession of natural resources that decides the level of development but also how far these resources are converted into useful goods and services for generating income and wealth.
Question 2. Which are the factors that influence measuring national Income?
Answer:
The rate of economic growth
Changes in average living standards
Changes in the distribution of income
Question 3. What is National income according to Simon Kuznets?
Answer: Simon Kuznets has defined national income as, “the net output of commodities and services flowing during the year from the country’s productive system in the hands of the ultimate consumers”.
Question 4. What is Per Capita Income?
Answer: The average income of the people of a country in a particular year is called per capita income (PCI) for that year.
Class 8 Economics Chapter 3 National Income And Sectoral Aspects Of The Indian Economy Kseeb
Question 5. How is Per Capita Income calculated?
Answer:
Per Capita Income = (National Income)/(Population)
Question 6. Explain the importance of the primary sector.
Answer: In the primary sector, agriculture is the predominant activity and has the largest share of national income. So let us concentrate on the role and importance of agriculture in the Indian economy. Even today, it is considered to be the backbone of our economy.
Question 7. Explain the importance of the secondary sector.
Answer: Industry contributes nearly one-third of national income, has helped in building the basic infrastructure like transportation, power, and communications, and produces a wide array of consumer goods that you use in your daily life.
Question 8. Which activities come under the services sector?
Answer: Telephone services; educational institutions; hospitals; health centers; hotels; restaurants; financial and banking establishments; coaching, training, and consultancy activities; and social service agencies come under the services sector.
Question 9. Explain the importance of the tertiary sector.
Answer: The service sector is the largest contributor to the national income at 59% and employs about 28% of workers. It has helped in attracting a huge amount of foreign capital and in earning large sums of foreign exchange. India earned Rs.5 lakh crores through exports of services in 2014-15.
National Income And Sectoral Aspects KSEEB Class 8 Textbook Solutions
Question 10. What are the problems of Small Scale Industries?
Answer:
The problems of Small Scale Industries are:
Non-availability of raw materials
Problem of finance
Low technical skill
Marketing problems
Competition from large-scale industries
Kseeb Class 8 Economics Chapter 3 National Income And Sectoral Aspects Of The Indian Economy Question Answers
Question 11. What are the measures undertaken by Government to develop small-scale industries?
Answer: The Government of India has taken many measures like Startup India, Stand up India, MUDRA Bank, etc. to help the small-scale industries.
Question 12. What are the causes of Agricultural Distress?
Answer:
The measures undertaken by Government to develop the small scale industries are:
Uneconomic size of the cultivated holding
High population pressure
Rain-fed farming and the recurrence of droughts
Partial impact of the green revolution
A decline in public investments in irrigation and other related infrastructure
Inadequate credit from institutional sources
Inability to get Remunerative Prices