NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Important Concepts And Terms

Primary Sector: It basically produces natural goods such as wheat, rice, cotton, milk, wool, minerals, ores, etc.

Secondary Sector: This sector covers activities in which natural products are changed into other forms by way of manufacturing that we associate with industrial activities.

Employment: It is a situation in which a person who is able and willing to work, gets work at the existing wage rate.

Unemployment: It is a situation in which a person who is able and willing to work, does not get work at the existing wage rate.

Economic Activity: It is that activity which enables a person to generate income.

Tertiary Sector: All those activities that link the producers and consumers are called tertiary sector activities.

Underemployment Or Disguised Unemployment: It is a situation in which more people are engaged in an economic activity than the required number.

Organized and Unorganised Sector: The organized sector covers those enterprises or places of work where the terms of employment are regular and where people have assured work.

The unorganized sector is characterized by small and scattered units, which are largely outside the control of the government.

Private Sectors: The private sector is a sector in which the ownership of assets and the delivery of services are in the hands of private individuals or companies, and profit is the main motive.

Public Sectors: Provide services for the utility of the public well-being as a whole.

Gross Domestic Product (GDP): It is the value of all final goods and services produced within a country during a particular year.

Final Goods: Final goods are those goods that are meant for use by the final consumer. In other words, goods that reach the consumer are called Final Goods.

Intermediate Goods: Intermediate goods are those goods which are used to produce other goods and therefore they always move from one stage of production to another in the manufacture of a final good.

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Flowchart

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Exercises

Question 1. Fill in the blanks using the correct option given in the bracket:

1. Employment in the service sector ________ increased to the same extent as production, (has/has not)
Answer: has not

2. Workers in the _______ sector do not produce goods. (tertiary/agricultural)
Answer: tertiary

3. Most of the workers in the ______ sector enjoy job security, (organized/unorganized)
Answer: organised

4. A ________ proportion of laborers in India are working in the unorganized sector, (large/small)
Answer: Large

5. Cotton is a ________ product and cloth is a product, (manufactured/natural)
Answer: natural, manufactured

6. The activities in primary, secondary, and tertiary sectors are _________ (independent/interdependent)
Answer: interdependent

Question 2. Choose the most, appropriate answer:

1. The sectors are classified into public and private on the basis of:

1. Employment conditions
2. The nature of economic activity
3. Ownership of enterprises
4. Number of workers employed in the enterprises

Answer: 3. Ownership of enterprises

2. Production of a commodity, mostly through the natural process, is an activity _______ in the sector.

1. Primary
2. Secondary
3. Tertiary
4. Information technology

Answer: 1. Primary

3. GDP is the total value of ________ produced during a particular year.

1. All goods and services
2. All final goods and services
3. All intermediate goods and services
4. All intermediate and final goods and services

Answer: 2. All final goods and services

4. In terms of GDP, the share of tertiary sector in 2010-11 is

1. Between 20% and 30%
2. Between 30% and 40%
3. Between 50% and 60%
4. 70%

Answer: 3. Between 50% and 60%

Question 3. Match the following:

Answer: 1-D, 2-C, 3-E, 4-A, 5-B

Question 4. Find the odd one out and say why:

1. Tourist guide, dhobi, tailor, potter
2. Teacher, doctor, vegetable vendor, lawyer
3. Postman, cobbler, soldier, police constable
4. MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio

Answer:

1. Tourist Guide: He is appointed by the government, while dhobi, tailor, and potter belong to the private sector.
2. Vegetable Vendor: He is the only professional who does not require any formal education.
3. Cobbler: The rest are workers in the public sector, while his profession is a part of the private sector.
4. Sahara Airlines: It is a private enterprise, while the rest are government enterprises.

Question 5. A research scholar looked at the working people in the city of Surat and found the following:

Complete the table. What is the percentage of workers in the unorganized sector in this city?

Answer:

The percentage of workers in the unorganized sector in this city is 70%.

Question 6. Do you think the classification of economic activities into primary, secondary, and tertiary 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, 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 three sectors for smooth economic administration and development.

Question 7. For each of the sectors that we came across in this chapter, why should one focus on employment and GDP? Could there be other issues that should be examined? Discuss.

Answer:

For each of the sectors that we came across in this chapter, one should focus on employment and GDP because these determine the size of a country’s economy.

A focus on employment and GDP helps determine two important things – per capita income and productivity.

Hence, in each of the three sectors, employment rate and status as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.

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.

Question 8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.

Answer:

Our adults are engaged in various kinds of activities which are endless in all three sectors of the economy, both in organized and unorganized sectors.

Some Of These Are:

Primary Sector: Agriculture and related activities, lumbering, mining.

Secondary Sector: In different industrial units like textile, sugar industry, iron and steel industry, cement industry, fertilizer industry, electronic industry, etc.

Tertiary Sector: Doctors, teachers, lawyers, trade, transport, banking, etc.

Organized Sector: Government, semi-government, local bodies employees, big firms, big business houses, MNCs, etc.

Unorganized Sector: Domestic servants, casual laborers, people employed in construction work, dhabas, tea stalls, etc.

Question 9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer:

The tertiary sector is different from the other two sectors. This is because the other two sectors produce goods but, this sector does not produce goods by itself. The activities under this sector help in the development of 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 the service sector.

Question 10. 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 work than required.

For example:

In rural areas, this type of unemployment is generally found in the agricultural sector like in a family of nine people, all are engaged in the same agricultural plot.

But if four people are withdrawn from it there will be no reduction in output. So, these four 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 that can be managed by less number of persons.

Question 11. Distinguish between open unemployment and disguised unemployment

Answer:

Question 12. “The tertiary sector is not playing any significant role in the development of the Indian economy ” Do you agree? State reasons in support of your answer.

Answer:

No, I do not agree with the statement that the tertiary sector does not play any significant role in the development of the Indian economy. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades.

In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

Question 13. The 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:

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.

The people involved in such services may not directly help in the production of goods, for example, teachers, doctors, barbers, cobblers, lawyers, etc.

They may be termed as ancillary workers, which means, those who offer services to the primary service providers.

Question 14. Workers are exploited in the unorganized sector. Do you agree with this view? State 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 from the daily wages.
3. Government rules and regulations to protect the laborers 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.

Question 15. How are the activities in the economy classified on the basis of employment conditions?

Or

Describe, how activities in the economy are 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 that 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 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.

Question 16. Compare the employment conditions prevailing in the organized and unorganized sectors.

Answer:

The employment conditions prevailing in the organized and unorganized sectors are vastly different.

The organized 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 unorganized 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 a safe work environment.

Question 17. Explain the objectives of implementing the NREGA 2005.

Or

Describe the object of implementing MNREGA.

Answer:

The Objectives Of Implementing The NREGA 2005 Are:

1. To increase the income and employment of people.
2. Every state/region can develop tourism, regional craft, IT, etc., for additional employment.
3. The central government made a law implementing the right to work in 200 districts.
4. NREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

Question 18. Using examples from your area compare and contrast the activities and functions of private and public sectors.

Answer:

1. In our locality, we come across people engaged in different activities. These can be grouped under different categories like
   • Primary, secondary, and tertiary activities;
   • Organized and unorganized activities; and
   • Public and private sector activities.
2. There is a State Bank of India in our neighborhood; it is a public sector enterprise that provides services (tertiary sector).
3. We have also a Bank of India; it is an organized private sector unit that also provides services.
4. Similarly, privately owned hotels, tea stalls, grocery shops, fruit and vegetable selling shops, and book shops; all come under the unorganized private sector.
5. Mail is delivered by the postman (public sector) and a private courier.
6. A dairyman distributes milk. He comes under the unorganized sector. We buy milk from Mother Dairy (an organized private sector unit).
7. Buses are plied by the state government organizations as well as by the private enterprises.

Question 19. Discuss and fill in the following table giving one example each from your area.

Answer:

Question 20. State examples of public sector activities and explain why the government has taken them up.

Answer:

A few examples of public sector activities are the provision of water, electricity, and some modes of transport. The government has taken these up because water and power are needed by everyone.

If the work of providing electricity and water is left to private enterprises, the latter might exploit this opportunity and sell these at rates that the masses cannot afford.

Hence, to ensure that basic amenities like water and power are available for all, the government supplies these at low and affordable rates.

Question 21. Explain how the public sector contributes to the economic development of a nation.

Or

How does the public sector contribute 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 the creation and expansion of infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It is ensuring equality of income, and wealth and thus, a balanced regional development.
5. It encourages the 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.

Question 22. The workers in the unorganized sector need protection on the following issues: wages, safety, and health. Explain with examples.

Answer:

The Workers In The Unorganised Sector Need Protection:

Wages: Labourers who are employed as repair persons, vendors, etc., do not have a fixed income. They nearly managed to earn their living. They are not employed all through the year.

Safety: Workers in unorganized sectors are not provided with safe drinking water or a clean environment, for example, working in mining, and chemical industries is hazardous.

Health: Leave not granted in case of sickness. Medical facilities are not offered, for example, construction workers.

Question 23. A study in Ahmedabad found that out of 15,00,000 workers in the city; 11,00,000 worked in the unorganized sector. The total income of the city in this year (1997-1998) was ₹ 60,000 million. Out of this ₹ 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:

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is higher.

The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, the government should introduce some incentives so that more industries could be opened up in the organized sector.

Question 24. The following table gives the GDP in Rupees (Crores) by the three sectors:

1. Calculate the share of the three sectors in GDP for 1950 and 2011.
2. Show the data as a bar diagram similar to Graph 2 in the chapter.
3. What conclusions can we draw from the bar graph?

Answer:

1. In 1950, the share of primary sector = 57.97%, secondary sector = 13.77%, tertiary sector = 28.26%

In 2011, primary sector = 16.75%, secondary sector = 25.56%, tertiary sector = 57.68%

2. The graph is as follows:

From the above bar graph, we can conclude that the share of the tertiary sector in the GDP has almost doubled, while that of the primary sector has less than halved. The secondary sector has grown by about 11% in the last five years.

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Short Question and Answers

Question 1. Define the primary sector.

Or

What is the primary sector?

Answer:

The primary sector forms the base for all other products that we subsequently make. Since most of the natural products we get are from agriculture, dairy, fishing, and forestry, this sector is for agriculture and related activities.

Question 2. How are the activities in the economy classified on the basis of employment conditions?

Answer:

Based on employment conditions, activities in the economy are classified as unorganized and organized. The organized sector offers job security, in rural areas, the unorganized sector comprises landless agricultural laborers, sharecroppers, and artisans.

Read and Learn More Class 10 Social Science Solutions

Question 3. Classify the following list ‘of occupations under primary, secondary, and tertiary sectors:

1. Tailor
2. Worker in a match factory
3. Basket weaver
4. Moneylender
5. Flower cultivator
6. Gardener
7. Milk vendor
8. Potter
9. Fisherman
10. Bee-keeper
11. Priest
12. Astronaut
13. Courier
14. Call center employee

Answer:

Primary Sector: Flower cultivator, fisherman, gardener, beekeeper.

Secondary Sector: Basket weaver, a worker in a match factory, potter.

Tertiary Sector: Tailor, milk vendor, priest, courier, call center employee, astronaut, the moneylender.

Question 4. Why should, we be worried, about underemployment?

Answer:

Underemployment is a situation where people are apparently working but are made to work less than their potential and ability.

In case every worker could be provided with a full-day job, the individual level of income would rise along with the aggregate national income. As a result, poverty will correspondingly decline.

Question 5. Write any three points on the importance of the primary sector in the Indian economy.

Answer:

1. It is the base of livelihood for most of the population.
2. This sector uses those activities which directly use natural resources.
3. It forms the base for all other products that we subsequently make.

Question 6. 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.

Question 7. How does the public sector contribute to the economic development of a nation?

Answer:

The public sector contributes to the economic development of a nation by not more financial profit.

The public sector plays a vital role in contributing to the human development index via its functioning in health and education services.

Also by buying foodgrains at a “fair price” from farmers, and providing electricity, water, and postal service at low rates, the government ensures that the people have a good living.

Question 8. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer:

The tertiary sector is different from the other sectors because it does not manufacture or produce anything. For this reason, it is also known as the service sector. It aids the primary and the secondary sector in development.

The tertiary sector involves services like transport, storage of goods, communications, banking, and administrative work.

Question 9. Which essential services are included in the tertiary sector?

Answer:

The tertiary sector includes some essential services that may not directly help in the production of goods.

For example, we require teachers, doctors, and those who offer private personal services such as washermen, barbers, cobblers, lawyers, and people who do administrative and accounting work.

Question 10. Differentiate between open unemployment and disguised unemployment.

Or

What is the difference between open and disguised unemployment? Explain in brief.

Answer:

Open unemployment is when a person has no job in hand and does not earn anything at all.

Disguised unemployment, on the other hand, is mostly found in the unorganized sector where either work is not consistently available or too many people are employed for the same work that does not require so many hands.

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Multiple Choice Questions

Question 1. Which of the following activities belongs to the secondary sector?

1. Mining and quarrying
2. Forestry and Fisheries
3. IT Industry
4. Dairy Farming

Answer: 3. IT Industry

Question 2. Which of the following activities belongs to the primary sector?

1. Poultry
2. Cultivation
3. Fisheries
4. All

Answer: 4. All

Question 3. ‘Banking and Insurance’ belongs to which of the following sectors?

1. Secondary
2. Primary
3. Tertiary
4. Information and Technology

Answer: 3. Tertiary

Question 4. Which of the following sectors is known as the service sector?

1. Primary sector
2. Secondary sector
3. Tertiary sector
4. None of these

Answer: 3. Tertiary sector

Question 5. Gross Domestic Product includes which of the following products?

1. Intermediate
2. Final
3. Both of these
4. None of these

Answer: 2. Final

Question 6. Production of which of the following sectors is included in GDP?

1. Primary
2. Secondary
3. Tertiary
4. All of these

Answer: 4. All of these

Question 7. Which of the following is an organized sector?

1. Small and Marginal farmers
2. A small shop
3. Office of Municipal Corporation
4. All of these

Answer: 3. Office of Municipal Corporation

Question 8. Which of the following is not an organized sector?

1. D.C. office
2. Office of Reliance Industries
3. A small ice factory
4. None of these

Answer: 3. A small ice factory

Question 9. Railways and Roadways belong to the _ sector.

1. Secondary
2. Tertiary
3. Primary
4. Information and Technology

Answer: 2. Tertiary

Question 10. Which of the following activities belongs to the public sector in India?

1. Agriculture
2. Water Supply
3. Small scale units
4. All

Answer: 2. Water Supply

Question 11. Underemployment occurs when people:

1. Do not want to work
2. Are working in a lazy manner
3. Are working less than what they are capable of doing
4. Are not paid for their work

Answer: 2. Are working in a lazy manner

Question 12. Which of the following sectors is fast growing these days?

1. Primary
2. Secondary
3. Tertiary
4. All of these

Answer: 3. Tertiary

NCERT Solutions For Class 10 Economics Chapter 2 Sectors Of The Indian Economy Data Interpretation

Question 1. Answer the following questions by looking at the graph:

1. Which was the largest producing sector in 1970-71?
2. Which was the largest producing sector in 2010-11?
3. Can you say which sector has grown the most over forty years?
4. What was the GDP of India in 2011?

Answer:

1. Primary sector
2. Tertiary sector
3. Yes, the growth has been national in the tertiary sector.
4. The value of GDP in the given year was 2,50,0000 crore.

Question 2. Complete the table using data given in graphs 2 and 3 and answer the question that follows

What are the changes that you observe in the primary sector over a span of forty years?

Answer:

Share Of Primary Sector In GDP and Employment

We have observed the following changes in the primary sector over a span of forty years:

1. The share of the primary sector in GDP has reduced from 45% to 25% over the period.
2. There has not been a similar shift out of the primary sector in the case of employment. It has decreased from 74% to 55% only.
3. More than half of the workers in the country are working in the primary sector. But, they are producing only a quarter of the GDP.
4. There are more people in agriculture than is necessary. For this reason, workers, in the agriculture sector are underemployed.

Question 3. The following table shows the estimated number of workers in India in the organized and unorganized sectors. Read the table carefully. Fill in the missing data and answer the questions that follow:

Workers in Different Sectors (in Millions)

1. What is the percentage of people in the unorganized sector in agriculture?
2. Do you agree that agriculture is an unorganized sector activity? Why?
3. If we look at the country as a whole, we find that — % of the workers in India are in the unorganized sector. Organized sector employment is available to only about — % of the workers in India.

Answer:

1. 64%
2. Yes, we agree that the agriculture sector is an unorganized sector activity. Because agricultural farms are not registered by the government. Though there are rules and regulations which are not followed.
3. If we look at the country as a whole, we find that 92.96% of the workers in India are in the unorganized sector. Organized sector employment is valuable to only 7.04% of western India.

Workers In Different Sectors (in Millions)