CLASS: X

SUBJECT: ECONOMICS
CH:2 SECTORS OF THE INDIAN ECONOMY

Question 1.
Which are the three sectors of economic activities ?
Answer:

1. Primary or agriculture and related sector.

2. Secondary or industrial sector.
3. Tertiary or services sector.

Question 2.
Why is the primary sector called agriculture and related sector ?
Answer:
Since most of the natural products we get are from agriculture, dairy, fishing,
forestry. This sector is also called agriculture and related sectors.

Question 3.
Which occupation belongs to the primary sector ? Mention any one.
Answer:
Dairy, fishing and forestry.

Question 4.
In which sector all natural products are changed into forms through ways of
manufacturing ?
Answer:
Secondary sector.

Question 5.
Why is the secondary sector called industrial sector ?
Answer:
Since this sector gradually became associated with the different kinds of
industries that came up it is also called as industrial sector.

Question 6.
State any one feature of the tertiary sector with example.
Answer:
The activities in the tertiary sector do not produce a good but they are an aid
or a support for the production process. For example goods produced in the
primary or secondary sector need transport to send them to markets.

Question 7.
Why is tertiary sector called service sector ?
Answer:
The service sector generates services rather than goods, it is called the
service sector e.g., teachers.

Question 8.
Classify the following occupations under primary, secondary and tertiary
sectors : washerman, dairy, fishing, sugar factory, ATM booths.
Answer:

 Primary sector — Dairy, fishing.

 Secondary sector – Sugar factory.
 Tertiary sector – Washerman, ATM booth.

Question 9.
How do we get total production of a sector for a particular year ?
Answer:
The value of final goods and services produced in each sector during a
particular year provides the total production for that year.

Question 10.
How do we get the Gross Domestic Product (GDP) of a country ?
Answer:
The sum of production in the three sectors gives the Gross Domestic Product
of a country.

Question 11.
In which sector are most of the people employed now-a-days ?
Answer:
The service sector.

Question 12.
Which was the main factor for the change from primary sector to the
secondary sector ?
Answer:
It was due to the introduction of new methods of manufacturing during
industrial revolution.

Question 13.
In 1973 and 2003 which sector had maximum share in GDP in India ?
Answer:

1. 1973 – Primary Sector.

2. 2003 – Tertiary Sector.
Question 14.
Why the primary sector continues to be the largest employer in 1973 as well
as in 2000 ? Give one reason.
Answer:
It is because not enough jobs were created in the secondary and tertiary
sectors.

Question 15.
Why is the tertiary sector becoming very important in India ? Give any one
reason.
Answer:
The major factor is the necessity of basic services such as hospitals,
educational institutions, post and telegraph services, police stations, courts
etc.

Question 16.
What do you mean by under-employment in agricultural sector ?
Answer:
In agricultural sector, under-employment means that there are more people
employed in agriculture than is necessary.

Question 17.
What is disguised unemployment ?
Answer:
Disguised unemployment is a situation in which more people are employed
on a job than the required number.

This kind of under-employment is hidden in contrast to someone who does

not have a job and is clearly visible as unemployed. Hence it is called
disguised unemployment.

Question 18.
Give one example of under-employment.
Answer:
Painters, plumbers and repair persons are examples of under-employment.
These people may spend the whole day but earn very little. They are doing
this work because they do not have better opportunities.

Question 19.
State any one way to create more employment opportunities in the country.
Answer:
New employment opportunities can be created by identifying, promoting and
locating industries and services in semi-rural areas where a large number of
people may be employed. For example a dal mill.

Question 20.
State one feature of NREGA 2005.
Answer:
Under NREGA – National Rural Employment Guarantee Act 2005, all those
who are able to, and are in need of work, have been guaranteed 100 days of
employment in a year by the government.

Question 21.
Why do you think NREGA 2005 is referred to as ‘Right to Work’ ?
Answer:
Because it guarantees 100 days of employment in a year by the
government.

Question 22.
According to estimates of the Planning Commission how many jobs can be
created in the education sector alone ?
Answer:
Planning Commission estimates that nearly 20 lakh jobs can be created in
the education sector alone.

Question 23.
State any one feature of the organised sector.
Answer:
Organised sector covers those enterprises or places of work where terms of
employment are regular and therefore, people have assured work.

Question 24.
What are the characteristics of the unorganised sector ? State any one.
Answer:
In unorganised sector, there are no provision for overtime, paid leave,
holidays, leave ‘ due to sjckness etc

Question 25.
Which groups of people are employed in unorganised sector in the rural
areas ?
Answer:
In the rural areas, the unorganised sector mostly consists of landless
agricultural labourers, small and marginal farmers, shopkeepers and
weavers, blacksmiths etc.

Question 26.
In urban areas which workers/people come in the category of unorganised
sector ?
Answer:
In urban areas, unorganised sector comprises mainly of workers in small
scale industry, casual workers in construction, trade and transport etc.

Question 27.
In which sector majority of workers from scheduled castes, tribes and
backward communities are employed ?
Answer:
Unorganised sector.

Question 28.
Classify economic activities into sectors on the basis of ownership. Give
examples.
Answer:

1. In terms of ownership, sectors can be divided into public and private

sectors.
2. Public sector – Railways.
3. Private sector- Tata Iron and Steel Company Ltd.

Question 29.
What are the objectives of public and private sector enterprises ? State one
each.
Answer:

1. Public sector – Welfare of the people and not to earn profit.

2. Private sector – To earn profit.

Question 30.
State any two activities that are the primary responsibilities of the
government.
Answer:
Providing health and education facilities for all.

QUESTIONS OF 3/5 MARKS

Answers should be in about 80/100 words.

Question 1.
Explain the three sectors of economic activities with the help of examples.
Or
What do you understand by economic activities ? Explain different sectors of
economic activities.
Answer:
(1) Economic activities : Activities which generate income are called
economic activities e.g., to do business, to work in a bank etc.
(2) Sectors of economic activities : The economic activities are
classified into three sectors which are given below :

 Primary sector :

o When we produce goods by exploiting natural resources – mineral,

ore, milk etc., is an activity of primary sector,
o It is so because it forms the base for all other products that we
subsequently make,
o This sector is called agriculture and related sector because most of
the natural products are from agriculture, dairy, fishing, forestry.
 Secondary sector :
o This sector covers activities in which natural products are changed
into other forms by way of manufacturing, for example cotton into
cloth.
o This process can be done in a factory, a workshop or at home,
o Since this sector is mostly associated with different kinds of
industries, it is also called as industrial sector.
 Tertiary sector :
o These are activities that help in the development of the primary
and secondary sectors,
o These activities, by themselves, do not produce a good but they
are an aid or a support for the production process. For example,
manufactured goods need to be transported by trucks or trains and
then sold in the market. Sometimes goods are stored in godowns.
We need communication system to interact with each other,
o Transport, storage, communication, banking, trade are important
tertiary activities,
o Since these activities generate services rather than goods, the
tertiary sector is also called the service sector.

Question 2.
“Economic activities, though grouped into three different catergories, are
highly interdependent.” Discuss.Do you agree with the view that primary,
secondary and tertiary sectors are dependent on each other ?
Answer:
Primary, secondary and tertiary sectors are interdependent as
mentioned below :

1. When we produce goods by exploiting natural resources, it is an activity

of the primary sector. It is primary because it forms the base for all
other products that we subsequently make.
2. The secondary sector covers activities in which natural products are
changed into other forms manually or by machines. For example wheat
is used to manufacture bread. So there is mutual dependency between
primary and secondary sectors.
3. The activities that help in the development of the primary and
secondary sectors fall under the tertiary sector. These activities by
themselves do not produce a good but they are an aid or a support for
the production process. Transport, storage, communication and banking
are some examples of tertiary activities.

Question 3.
Describe the essential services that are included in the service sector and
may not directly help in the production of goods.
Answer:
The essential services, included in the service sector, that may not
directly help in the production of goods are as mentioned below :

1. Teachers.
2. Doctors.
3. Persons who provide personal services such as washerman, barbers,
cobblers, lawyers and people to do administrative and accounting
works.
4. Recently certain new services based on information technology such as
internet cafe, ATM booths, call centers, software companies have
become important.

Question 4.
Highlight any three differences between intermediate goods and final goods.
Answer:
Three differences between the intermediate and final goods are as
mentioned below :

Intermediate goods Final goods

(1) Intermediate goods are used up in (1) These goods are used for final
producing final goods and services. consumption. For example biscuits
The value of final goods includes the are final goods. These are sold in the
value of all the intermediate goods market for consumption. The value of
that are used in making the final the intermediate goods is already
goods. For example wheat and wheat included in it.
flour used in making of biscuit in a

factory are intermediate goods

(2) Intermediate goods are not

included in GDP to avoid the problem (2) The value of final goods and
of double counting. For example if the services are included to know the
value of wheat and wheat flour is GDP of a country. A sum of production
counted then we would be counting of three sectors gives the GDP.
the value twice or thrice.

Question 5.
What does GDP stand for ? Explain how GDP is calculated.
Or
What is Gross Domestic Product ? Which departments carry out the task of
measuring the GDP in India ?
Or
What is GDP ? Who undertakes the task of measuring GDP in India ? How is
this task done ? What is its importance ?
Answer:

1. What is GDP – The value of final goods and services produced in each
sector during a particular year provides the total production of the
sector for that year. And the sum of the production in the three sectors
is called the Gross Domestic Product or GDP.
2. Measurement of GDP – The task of measuring GDP is undertaken by a
Central Government ministry. The ministry with the help of various
government departments of all the Indian states and union territories,
collects the information relating to the total volume of goods and
services and their prices and then estimates the GDP.
3. Importance of GDP – The GDP of a country shows the size of the
economy of the country. This reflects whether the country is poor or rich
and the status of employment and people.

Question 6.
Describe the change in the different sectors of the economy over a period of
time.
Or
What does the history of developed countries indicate about the shifts that
have taken place between the sectors ?
Answer:
The history of developed countries indicates about the shifts that
have taken place between the sectors as given below :

1. Initial stages of primary sector :

1. The agricultural sector was the most important sector of economic
activity. Most of the people were engaged in farming and
producing grains for their own consumption.
2. However with the passage of time agricultural sector produced
more food. This gave rise to many activities such as transporter,
administrator and army. Buying and selling increased.
3. But most of the goods produced were natural products.
4. Most of the people were still employed in the primary sector.
2. Secondary sector :
1. With the introduction of new methods of manufacturing, factories
came up.
2. More goods were produced in factories.
3. This was the beginning of secondary sector. It gradually became
important in total production and employment.
3. Tertiary sector : In the past 100 years there was shift from secondary
to tertiary sector due to the factors as mentioned below:

1. Need for hospitals/schools/police stations etc.

 2. Development of agriculture and industry and need for services
such as transport, torage etc.
3. Rise in the income level and more demand for tourism, shopping
etc.
4. Coming of Information Technology. ‘
Thus there was change from one sector to another in due course of
time.

Question 7.
Why is the tertiary sector growing so rapidly in India ? Explain by giving four
reasons
Or
Which sector has emerged as the largest producing sector in the Indian
economy in the last decade ? Give reasons.
Or
Give the meaning of tertiary sector. State any three factors that contributed
to the growth of this sector.
Answer:
(1) Tertiary sector relates to the activities that help in the development of
the primary and secondary sectors. These activities by themselves do not
produce a good but they are an aid or a support for the production process.
(2) The causes for tertiary sector becoming important sector in India
by replacing the primary sector are as
follows:

 Concept of welfare state and basic services : In a modern welfare

state such as India, the basic services such as hospitals, educational
institutions, post and telegraph services, police stations, courts,
transport, banks and insurance companies are required. These have
become a necessity. It is the responsibility of the state to provide these
services. All these services come in the category of service sector.
 Development of agriculture and industry : The development of
agriculture and industry leads to the development of transport, storage
and other services. As these sectors make more development, the
service sector too expands and its importance increases accordingly.
 Rise in income : In the recent years, there has been a rise in the
income of certain sections of people. As a result of it, the demand for
tourism, shopping and private hospitals etc. has increased. This has led
to importance of tertiary sector.
 Development of information technology : The development of
information and communication technology has increased the
importance of tertiary sector because now most of the people want to
avail these services such as mobile phone, internet cafe etc. The
production of these services has been rising rapidly all over the world.
 In view of the above factor, the tertiary sector has grown rapidly in
comparison to other sectors.

Question 8.
Suggest any three ways to create more employment in rural sector
Or
Explain the ways to create more employment in agricultural sector.
Or
Explain measures that can be adopted to remove disguised unemployment
in the agriculture sector.
Answer:
The following steps can be taken to remove disguised
unemployment in the agriculture sector :

 Loans should be provided to small farmers by the government or banks

to have more irrigation facilities like wells and tube-wells in order to
enable them to grow second crop.
 New dams and canals should be constructed. This will lead to more
employment in the agricultural sector.
 Transportation and storage facilities must be improved to provide
productive employment to not only the farmers but also others in
services like transport and trade.
 Banks should provide agricultural credit to the farmers to improve
farming.
 Industries such as dal mill, cold storage, hoi\ey collection centres,
processing of vegetables should be set up in rural or semi-rural areas.
Such industries will get raw materials from the rural areas and will
create more employment opportunities for the rural people.
 Schools should be opened in rural areas. This will provide jobs to about
20 lakh people in the education sector.
 Health services should be improved in rural areas by opening
dispensaries and hospitals. This will create jobs for doctors, nurses and
other staff.
 Tourism, regional craft industry or Information Technology should be
encouraged by the government to create more employment
opportunities in the rural areas.
 As a short term measure, the government has implemented the Right to
Work in 200 districts of India. It is called National Rural Employment
Guarantee Act (NREGA) 2005.

Question 9.
Suggest any three ways to create more employment opportunities in urban
sector.
Answer:
The following ways are suggested to create more employment
opportunities in urban areas :

 Different states should encourage regional craft industry.

 Tourism industry should be promoted. Different sites of historical or
cultural importance should be maintained in a better way to attract
tourists. According to a study by the Planning Commission if the tourism
sector is improved, every year employment can be given to more than
35 lakh people.
 The government should make changes in the policies to provide basic
facilities, develop infrastructure and extend loan and technological
assistance. According to an estimate of the Planning Commission,
nearly 20 lakh jobs can be created in education sector alone if we
provide buildings, teachers and the other staff for the schools for about
200 million children in the school-going age-group.

Question 11
What steps should be taken by the government to protect workers in the
unorganised sector ?
Answer:
Following steps should be taken to provide protection and support
to them :

1. Small farmers who comprise 80% of the rural’households, should be

supported in procuring seeds, agricultural inputs, credit, storage
facilities and marketing outlets.
2. In urban areas, government should help small scale industry in
procuring raw material and marketing of goods.
3. The interests of the casual workers in rural as well as urban areas must
be protected by law.
4. The government should take steps to ensure equal treatment for all
particularly low castes.
Minimum Wages Act should be enforced strictly.
5. The government should take steps to ensure regulation of working
hours and grant of medical facilities etc.
6. The government should take strict action against those employers who
discriminate on account of caste, creed and gender.