NCERT Solutions For Class 10 Economics Social Science Chapter 2: Sectors of the Indian Economy

NCERT Solutions for Class 10 Social Economics Chapter 2 Sectors of Indian Economy

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Q1: Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural)
(iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent / interdependent)

Answer:
(i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.
(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent.

Q2: Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in ______________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of _____________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 per cent

Answer:
(a) (iii)
(b) (i)
(c) (ii)
(d) (iii)

Q4:Find the odd one out and say why.
Answer: (i) Tourist guide, dhobi, tailor, potter.
(ii) Teacher, doctor, vegetable vendor, lawyer.
(iii) Postman, cobbler, soldier, police constable.
(iv) MTNL, Indian Railways, Air India, Sahara Airlines, All India Radio.
(i) Potter, because only the potter relates to secondary sector.
(ii) Vegetable vendor, since only this directly help in the production of goods.
(iii) Cobbler because, only cobbler falls in private sector.
(iv) Sahara Airlines, as this is only a private sector company in the group.

Q6: Do you think the classification of economic activities into primary, tertiary and secondary is useful? Explain how.
Answer: The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development.

Q7: For each of the following sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Answer: For each of the sectors mentioned in this chapter our focus should definitely be on employment and GDP. This is because growth in GDP and full employment are common goals of Five Year Plans and they also determine the size of a country’s economy. A focus on employment and GDP helps us to calculate and monitor the most important factors like: per capita income, productivity, changes in employment rate and contribution to GDP by the three sectors of economy and thus, takes necessary steps required for the upliftment of the country’s economy as a whole.
Yes, the other issues which should be examined are –
1. balanced regional development
2. equality in income and wealth among the people of the country.
3. how to eradicate poverty
4. modernization of technology
5. self-reliance of the country
6. how to achieve surplus food production in the country.

Q9: How is the tertiary sector different from other sectors? Illustrate with few examples.
Answer: The tertiary sector different from other two sectors. This is because other two sectors produce goods but, this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as service sector.

Q10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: Disguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required.
For example in rural areas, this type of unemployment is generally found in agricultural sector like – in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are with drawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.

Q11: Distinguish between open unemployment and disguised unemployment.
Open Unemployment – When a country’s labour force do not get opportunities fro adequate employment, this situation is called open unemployment. This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.
Disguised Unemployment – This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required. This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

Q12: Tertiary sector is not playing any significant role in the development of Indian economy. Do you agree/ Give reasons in support of your answer.
Answer: No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. The reasons are as follows:
1. In terms of GDP this sector emerged as the largest producing sector in India surpassing the primary and secondary sectors. In 1973, the share of the tertiary sector in GDP was about 35% which increased to more than 50% in 2003. Over the thirty years between 1973 and 2003, while production in all three sectors increased, it has been the most in tertiary sector.
2. In terms of employment also the rate of growth of employment in tertiary sector between the same period was nearly 250%. This was negligible in primary sector.

Q13: Service sector in India employs two different kinds of people. Who are these?
Answer: The service sector in India employs the following two different kinds of people. They are:
(a) The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
(b) The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.

Q14: Workers are exploited in the unorganized sector. Do you agree with this view.? Give reasons in support of your answer.
Answer: Yes, workers are exploited in the unorganized sector. This would be clear from the following points:
1. There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
2. They do not get other allowances apart fro the daily wages.
3. Government rules and regulations to protect the labourers are not followed there.
4. There is no job security.
5. Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
6. Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.

Q15: How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of employment conditions, the activities in the economy are classified into organized and unorganized sectors.
Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.
Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.

Q16: Compare the employment conditions prevailing in the organised and unorganised sectors.
Answer: The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.

Q17: Explain the objective of implementing the NREGA 2005.
Answer: The objective of implementing the NREGA 2005 was to provide 100 days of guaranteed employment to those people in rural India who can work, and are in need of work. This Right to Work has been implemented in 200 districts. If the government is unable to provide this employment, then it has to give unemployment allowances to the people.

Q18: Using examples from your area compare and contrast the activities and functions of private and public sectors.

Q20: Give three examples of Public Sector activities and explain why the government has taken up them.
Answer: The examples are:
Railways: The government has taken up it for the following reasons –
1. Only the government can invest large sums of money on the public project with long gestation period.
2. To ensure and provide transportation at cheap rate.
NTPC: The government has taken up it to provide electricity at a lower rate than the actual cost of production. The aim is to protect and encourage the private sector especially small scale industries.
AIIMS: To provide quality health services at reasonably cheap rate was the main purpose of the government to start this.

Q21: Explain how Public sector contributes to the economic development of a nation.
Answer: In the following ways Public sector contributes to the economic development of a nation:
1. It promotes rapid economic development through creation and expansion of infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It is ensuring equality of income, wealth and thus, a balanced regional development.
5. It encourages development of small, medium and cottage industries.
6. It ensures easy availability of goods at moderate rates.
7. Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.

Q22: The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples?
Answer: The workers in the unorganised sector need protection on the following issues: wages, safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they have no job security. Here, wages too differ from time to time. Consequently, the government has set up a minimum wages act to protect such workers from economic exploitation.
The same problem exists for miners working in private mining companies. Their safety is secondary to the company’s profits, and as a result, many miners suffer grievous injuries (and many a times, even die) due to inadequate safety gear and norms. Governments of most nations have now laid down strict rules for private enterprises to ensure workers’ safety.
Most companies in the unorganised sector do not provide health insurance to their employees. Some of these might be involved in dangerous factory production that may harm a worker’s health in the long term. These workers need to be protected against the tyranny of the employer, and it is here that the government steps in.

Q23: A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000 worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?
Answer:Ways to generate more employment in the city of Ahmedabad have to be provided by the government, especially in the unorganised sector. As the table shows, the organised sector’s earnings are much higher than that of the unorganised sector even though the latter employs almost 80% of the city workers. More companies need to be brought under the roof of the organised sector so that workers from the unorganised sector are attracted to jobs there, with higher and more secure wages. For this, the government must provide loans and aid to companies transferring from unorganised to organised sectors.

Multiple Choice Questions

Previous Years’ Questions
1. The sectors are classified into public and private sector on the basis of: 
(a) Employment conditions
(b) The nature of economic activities
(c) Number of workers employed
(d) Ownership of enterprises

2. The value of all final goods and services produced within a country during a particular year is called as: 
(a) Gross Domestic Product
(b) Net Domestic Product
(c) National Product
(d) Production of Tertiary Sector

3. The service sector includes activities such as 
(a) agriculture, dairy, fishing and forestry
(b) making sugar, gur and bricks
(c) transport, communication and banking
(d) None of these

4. Choose the correct meaning of organised sector 
(a) It covers those enterprises where the terms of employment are regular.
(b) It is outside the control of the government.
(c) Jobs are not regular.
(d) It provides low salaries.

NCERT Questions
5. Production of a commodity, mostly through the natural process, is an activity in sector.
(a) primary
(b) secondary
(c) tertiary
(d) information technology

6. GDP is the total value of ………….. produced during a particular year.
(a) all goods and services
(b) all final goods and services
(c) all intermediate goods and services
(d) all intermediate and final goods and services

7. In terms of GDP the share of tertiary sector in 2003 is:
(a) between 20 per cent to 30 per cent
(b) between 30 per cent to 40 per cent
(c) between 50 per cent to 60 per cent
(d) 70 per cent

Additional Questions
8. Underemployment occurs when people
(a) do not want to work
(b) are working in a lazy manner
(c) are working less than what they are capable of doing
(d) are not paid for their work

9. When we produce a good by exploiting natural resources, it is an activity of the
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Organised sector

10. Natural products are changed into other forms through ways of manufacturing
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Unorganised sector

11. Which of the following is included in tertiary sector?
(a) ATM booths
(b) Call centres
(c) Internet cafe
(d) All of them

12. Only ………… are included to know the total production in each sector.
(a) Final goods and services
(b) Intermediate goods
(c) Only goods
(d) Only services

13. At the initial stages of development, ………………. was the most important sector of economic activity
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Organised sector

14. In the past 100 years, there has been a further shift from secondary to ……………. in developed countries.
(a) Primary sector
(b) Organised sector
(c) Tertiary sector
(d) Unorganised sector

15. Mention the largest producing sector in 2003 in India ?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Unorganised sector

16. Name the sector which continues to be the largest employer even in the year 2000.
(a) Secondary
(b) Primary
(c) Tertiary
(d) Banking section

17. A situation in which more persons are employed on a job than are optimally required.
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment

18. A study conducted by the planning commission estimates that the following number of jobs can be created in the education sector alone.
(a) 20 lakhs
(b) 15 lakhs
(c) 18 lakhs
(d) 25 lakhs

19. Out of 200 million children in the school going age group, how many are attending schools?
(a) One – fourth
(b) Half
(c) Two – thirds
(d) One – fifth

20. According to planning commission, if tourism as a sector is improved, every year we can give additional employment to people more than
(a) 25 lakhs
(b) 30 lakhs
(c) 32 lakhs
(d) 35 lakhs

21. Central government in India made a law, implementing the Right to Work in how many districts of India ?
(a) 150 districts
(b) 200 districts
(c) 250 districts
(d) 300 districts

22. Under NREGA 2005, how many days of work, in a year are guaranteed by the government?
(a) 100 days
(b) 120 days
(c) 90 days
(d) 99 days

23. Enterprises or places of work where the terms of employment are regular and people have assured work comes under
(a) Primary sector
(b) Organised sector
(c) Unorganised sector
(d) Tertiary sector

24. Percentage of people in the unorganised sector in tertiary sector is …………………..
(a) 67 %
(b) 76 %
(c) 51 %
(d) 75 %

25. In the rural areas, the unorganised sector mostly comprises of
(i) Landless agricultural labourers
(ii) Garment makers
(iii) Street vendors
(iv) Sharecroppers and artisans
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (i) and (iv)

26. Which of them does not generally find itself in the unorganised sector ?
(a) Scheduled castes
(b) Scheduled tribes
(c) Rich families
(d) Backward communities

27. Government owns most of the assets and provides all the.services
(a) Private Sector
(b) Public Sector
(c) Organised Sector
(d) Tertiary Sector

28. There are large number of activities like providing health and education which are the primary responsibility of
(a) Primary sector
(b) Private companies
(c) Government
(d) Secondary sector

ANSWERS