CBSE Class 10th Economics NCERT Question and Answer  Chapter 2 Sectors of the Indian Economy

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

  • Employment in the service sector _________ increased to the same extent as production. (has / has not)

Answer has not

  • Workers in the _________ sector do not produce goods. (tertiary / agricultural)

Answer tertiary

  • Most of the workers in the _________ sector enjoy job security. (organised / unorganised)

Answer organised

  • A _________ proportion of labourers in India are working in the unorganised sector. (large / small)

Answer large

  • Cotton is a _________ product and cloth is a _________ product. [natural /manufactured]

Answer natural and manufactured

  • The activities in primary, secondary and tertiary sectors are_________ [independent / interdependent]

Answer interdependent

Question 2: Choose the most appropriate answer.

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

  1. employment conditions
  2. the nature of economic activity
  3. ownership of enterprises
  4. number of workers employed in the enterprise

Answer: 3. ownership of enterprises

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

  1. primary
  2. secondary
  3. tertiary
  4. information technology

Answer: 1. primary

c. 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

d. In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.

  1. 20 to 30
  2. 30 to 40
  3. 50 to 60
  4. 60 to 70

Answer: 3. 50 to 60

Question 3: Match the following:

Problems faced by farming sectorSome possible measures
1. Unirrigated land(a) Setting up agro-based mills
2. Low prices for crops(b) Cooperative marketing societies
3. Debt burden(c) Procurement of food grains by government
4. No job in the off season(d) Construction of canals by the government
5. Compelled to sell their grains to the local traders soon after harvest(e) Banks to provide credit with low interest

Answer:

Problems faced by farming sectorSome possible measures
1. Unirrigated land(d) Construction of canals by the government
2. Low prices for crops(c) Procurement of food grains by government
3. Debt burden(e) Banks to provide credit with low interest
4. No job in the off season(a) Setting up agro-based mills
5. Compelled to sell their grains to the local traders soon after harvest(b) Cooperative marketing societies

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

(i) Tourist guide, dhobi, tailor, potter

Answer:

Tourist Guide stands out because they are appointed by the Government Department, while tailor, dhobi, and potter are engaged in private work.

(ii) Teacher, doctor, vegetable vendor, lawyer

Answer:

The Vegetable vendor is the odd one out because they work in the primary sector, while jobs of teacher, lawyer, and doctor belong to the tertiary sector.

(iii) Postman, cobbler, soldier, police constable

Answer: 

Cobbler: private sector.

Postman, soldier, police constable: public/organized sector.

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Answer:

Jet Airways is the odd one out because it is owned by a private company and MTNL, Indian Railways, Air India and All India Radio are owned by the Government of India

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

Place of WorkNature of EmploymentPercentage of working People
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in
marketplaces with formal license
 15
People working on the street,
construction workers, domestic workers
 20
Working in small workshops
usually not registered with the government
  

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

Answer:

Place of WorkNature of EmploymentPercentage of working People
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in marketplaces with formal licenseOrganised15
People working on the street, construction workers, domestic workersUnorganised20
Working in small workshops usually not registered with the governmentUnorganised50

The percentage of workers in the unorganised sector are 70% (50+20)

Question 6: Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

Answer:

Classifying economic activities into primary, secondary, and tertiary sectors helps identify occupations and their contributions to GDP, enabling focus on sectors with employment and income growth potential.

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 which should be examined? Discuss.

Answer:

Employment and GDP are crucial for a country’s development, influencing productivity and national income. High employment rates lead to GDP and income growth. Other vital issues include healthcare, education, poverty, food production, and nourishment.

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:

Human employment sectors: primary (e.g., cleaning, agriculture), secondary (e.g., manufacturing), tertiary (e.g., teaching, banking).

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

Answer:

Tertiary activities support primary and secondary sectors by aiding production processes without directly producing goods. Examples include transportation and retail, which facilitate goods’ distribution and sale.

Question 10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer:

Disguised unemployment occurs when individuals appear to be working but are actually underutilized. In rural areas, it’s seen when more people work on land than necessary. In urban areas, it’s evident when skilled workers like painters or plumbers struggle to find consistent employment.

Question 11: Distinguish between open unemployment and disguised unemployment.

Answer:

Open unemployment: willing to work but unable to find a job despite education. Disguised unemployment: appearing to work but underutilized, often seen in rural areas where individuals work on farms but are less productive.

Question 12: 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:

Tertiary sector crucial in Indian economy: replaced primary sector as top producer in 2003.

Supports primary and secondary sectors’ growth.

Significant contribution to national income.

Education, a key component, falls under tertiary sector.

Provides maximum employment opportunities.

Question 13: Service sector in India employs two different kinds of people. Who are these?

Answer:

Service sector in India employs:

1. Highly skilled labor (e.g., teachers, bankers, IT officials) – permanently employed.

2. Less skilled labor (e.g., vendors, electricians, plumbers) – not permanently employed.

Question 14: Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Answer:

Unorganized sector: small, scattered units, outside government control.

Rules often ignored; low-paid, irregular jobs.

Workers exploited: more work, low pay, no overtime, medical benefits, or job security.

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

Answer:

Economy classified into two sectors based on employment conditions:

1. Organized Sector: Government-registered enterprises with employee-friendly environments, offering high wages and facilities.

2. Unorganized Sector: Small, scattered units with temporary employment, offering lower pay.

Question 16: Compare the employment conditions prevailing in the organised and unorganised sectors.

Answer:

Organized sector: Higher wages, medical facilities, permanent jobs, stable income source.

Unorganized sector: Low wages, exploitation, no overtime pays, no medical facilities, unhealthy work environment.

Question 17: Explain the objective of implementing the NREGA 2005.

Answer:

NREGA 2005: Guarantees 100 days of employment annually to those in need.

Provides unemployment benefits if employment not provided.

Aim: Create additional job opportunities in rural areas and small towns.

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

Answer:

Private sector: Assets and industries owned by individuals, aim to earn profits.

Public sector: Industries and enterprises owned by the government, aim to provide facilities and earn profits.

Examples:

– Public sector: Government banks, post offices, municipal hospitals, Indian Railways.

– Private sector: IT companies, malls, multiplexes.

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

 Well-Managed OrganisationBadly-Managed Organisation
Public Sector  
Private Sector 

Answer: Students must answer this question based on their own observations.

Question 20: Give a few examples of public sector activities and explain why the government has taken them up.

Answer:

Public sector: Aimed at public welfare, provides essential facilities like banks, transport, irrigation, electricity, and water.

Government responsibility: Ensure citizens have access to basic necessities through public sector activities.

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

Answer:

Public sector: Under government control, responsible for basic necessities like water, electricity, and irrigation.

Government’s role: Ensure development and growth by providing essential services and employment opportunities through the public sector.

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

Answer:

Unorganized sector workers need protection:

  1. Wages: Fixed wages essential for decent livelihood; current income unstable.

2. Safety: Lack of job security; workers can be terminated without notice.

3. Health: No medical security; no sick leave for daily wage laborers.

Question 23: 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:

Total WorkersWorkers in Unorganised SectorTotal Income of City (1997-1998)Income generated by organised sectorIncome generated by unorganised sector
15,00,00011,00,00060,000 million32,000 million28,000 million

The table clearly shows that the income generated in unorganised sector is close to 50% of the total income of Ahmedabad. In order to increase employment opportunities for the people more industries should be set up, proper education must be provided to all and proper facilities under the public sector must be provided to all.

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