Subject: Social Science Grade: X

ECONOMICS - SECTORS OF THE INDIAN ECONOMY

SECTION-A (ONE MARK QUESTIONS)

Q1. What are economic activities?

Ans. The activities which contribute to the flow of goods and services in an economy.

Q2. There are many activities that are undertaken by directly using natural resources. What are
these activities known as?

Ans. Primary activities.

Q3. ‘Diary is a primary activity’. Give reason.

Ans. In case of diary we are dependent on the biological process of the animals and availability
of fodder. The product i.e. milk is also a natural product.

Q4. What is secondary sector?

Ans. The secondary sector includes activities in which natural products are changed into other
forms manually or through machines.

Q5. What is tertiary sector?

Ans. The sector which provide service to both primary and secondary sectors. For example,
banking, trade communication etc.

Q6. What is GDP?

Ans. It is value of final goods and services produced within a country during a particular year.

Q7. What are final goods?

Ans. Final goods are the goods which are ready for use. For example, pen.

Q8. What are intermediate goods?

Ans. These are the goods which are used up during the production process.

Q9. ‘While calculating Gross Domestic product the value of only final goods should be included’.
Give reason.

Ans. Because the final goods already includes the value of intermediate goods.

Q10. Which sector is the largest employer?

Ans. Primary Sector

Q11. What is Right to Work?

Ans. Under the Right all those who are ready to work at prevailing wages are given work by the
government.

Q12. What is organised sector?

Ans. It is a sector which covers those enterprises or place of work where the terms of
employment are regular and therefore people have regular work.

Q13. What is unorganised sector?

Ans. Any sector which is largely outside the control of the government.

Q14. What is a public sector?

Ans. Any sector which is controlled and managed by the government is known as public sector
for e.g. Indian Railway.

Q15. On what basis, the sectors are classified into public sector and private sector?

Ans. Ownership of enterprises.

Q16. In which year the National Rural Employment Guarantee Act was implemented?

Ans. 2005

Q17. What is the main motive of Private enterprises?

Ans. Profit making is the main motive of Private enterprises.

Q18. In which sector is seasonal and disguised unemployment most prevalent in India?

Ans. Agriculture Sector

Q19. Which sector helps in the development of the primary and secondary sector?

Ans. Service/Tertiary Sector

Q20. How can we determine which sector is dominant in a country?

Ans. To determine which sector is dominant in a country, we have to see which sector is
contributing more in the total production and generates maximum employment.

Q21. TISCO and Reliance are owned by which sector?

Ans. Private Sector

Q22. Write activities which belong to the primary sector.

Ans. Agriculture, dairy and mining

Q23. Sahara Airlines and B.S.E.S. are examples of which sector?

Ans. Private Sector

Q24. Railway is an example of which sector?

Ans. Public sector

Q25. A.T.M. is an example of which sector?

Ans. Service Sector

Q26. Which communities generally find them in the unorganized sector?

Ans. Schedule tribes and backwards communities.

Q27. Give full of NREGA.

Ans. National Rural Employment Guarantee Act

Q28. For how many days employment is guarantee under NREGA 2005?

Ans. 100 days.

Q29. The Government of India has implemented the ‘Right to Work’, in how many districts?

Ans. 330 districts.

Q30. In terms of GDP, what was the share of tertiary sector in 2003?

Ans. Between 50 to 60%.

Q31.Who has the ownership of the assets in the public sector?

Ans. Government

Q32. “What is the intention of the government in raising money through taxes?”

Ans. Government raises money through taxes and other ways to meet expenses on the services
rendered by it.

Q33. What does comprise the unorganised sector in rural areas?

Ans. Agriculture.

Q34. How does public sector help in the development of a country?

Ans. Public sector invests in key and basic industries as health, education, defense where
private sector cannot invest.
Q35. Which sector generates services rather than goods?

Ans. Tertiary Sector.

SECTION-B AND C (3 AND 5 MARKS QUESTIONS)

Q1. Classify the economic sectors on the basics of nature of activities. Mention the main
feature of each.

Or

Explain the three sectors of economic activities with the help of examples.

Ans. Classification of economic sectors on the basis of nature of activities are as follows:

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

of the primary sector, such as agriculture, dairy farming, fishing, forestry.
2. Secondary sector: In this, natural products are changed into other forms through
manufacturing that we associate with industrial activity. The product is not produced by
nature but must be made and therefore, some process of manufacturing is essential. For
example, using cotton fiber from the plant we spin, yarn and weave cloth.
3. Tertiary sector: It helps in the development of the primary and secondary sectors. They
provide aid or a support for the production process. Transport, storage, communication,
banking, trade are some examples of tertiary activities.( 3 marks Question)

Q2. Do you think the classification of economic activities into primary, secondary and tertiary
are useful? Explain how.

Ans. 1. Yes, in my opinion the classification of economic activities into primary, secondary and
tertiary sectors is very useful because classification will help us in identifying which activity is
related to which sector.
2. The very first point which will be known that how many people and where are they
employed in any country.
3. If development will be seen only in tertiary sector, then it means that agriculture which is
related to primary sector is deducting day by day and by noticing the rise and fall in both
sectors government will be able to take strong action towards the improvement wherever it is
required.
Therefore, to improve the sectors and to run the economy smoothly and for best
administration and development, classification of economic activities is necessary. (3 Marks
Question)

Q3. “Economic activities are interdependent.” Explain with examples.

Ans. It is true that Economic activities are interdependent.

 1. If the companies decide not to buy cotton from Indian producers, then the Indian cotton
cultivation will become less profitable and even may go bankrupt. In this case primary
sector is dependent on the secondary sector.
2. In case farmers refuse to sell sugarcane to a particular sugar mill then the mill has to
shut down. It is clear in this case that secondary sector is dependent on the primary
sector.
3. In case transporters are on strike then the primary sector and secondary sector will face
loss. Therefore,it is clear that primary sector and secondary sector are dependent on the
tertiary sector. (3 marks Question)

Q4. Why is the tertiary sector becoming more important in India? Explain by giving any three
reasons.

Ans. 1. In any country, several basic services like transport, bank, insurance, educational
institutions, etc. are required and the government has to take responsibility for the provision of
these services.

2. The development of agriculture and industry leads to the development of services, such as
transport, trade, storage, etc.

3. As income level rises, certain sections of people start demanding many services like eating
out, recreation, tourism, private hospitals, etc.

4. Certain new services such as those based on information and communication technology
have become important and essential.

5. Greater the development of the primary and secondary sectors, more would be the
demands for such services. (3 marks Question any 3 points. 5 Marks Question all 5 points)

Q5. Explain any three reasons for the Primary Sector to be the largest employer in India.

Ans. Primary sector continues to be the largest employer because:

1. Enough jobs have not been created in other sectors.

2. Primary sector requires comparatively less education than the other two sectors. Not
employed anywhere else flocks to the primary sector.

3. Most of the unemployed people take up activities of primary sector in hope of earning some
money

4. In the Tertiary sector though the production has risen almost 11 times, but employment has
grown only 3 times. (3 Marks Question any 3 points)
Q6. Differentiate between public and private sectors.

Or

How are the economic activities classified on the basic of ownership? Explain with suitable
example.

Ans. Public Sector:

1. The government owns most of the assets and provides all the services.
2. The purpose of the public sector is not first to earn profits. Government raises money
through taxes to meet expenses on the services rendered by it.
3. Railways or post office is an example of the public sector.

Private Sector:

1. Ownership of assets and delivery of services are in the hands of private individuals or
companies.
2. Activities in the private sector are guided by the motive to earn profit. To get such
services , we have to pay money to these individuals and companies.
3. Tata Iron and Steel Company or Reliance Industries Ltd. are examples of private sectors.

Q7. Explain how does the public sector contribute to the economic development of a nation?

Or

How does the service sector in India provide different kinds of services? Explain.

Ans. In the following ways, Public Sector contributes to the economic development of a nation.

1. It promotes rapid economic development through creation and expression of

infrastructure.
2. It creates employment opportunities.
3. It generates financial resources for development.
4. It ensures equality of income, 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. Contributes to community
development i.e., to the Human Development Index (HDI) via health and educational
services.(3 Marks Question any 3 Points. 5 MarksQuestion any 5 points)

Q8. “All of the service sectors are not growing equally well in India.” Justify the statement.

Or

Service sector in India employs two types of people. Explain by giving suitable examples.
Ans. 1. Service sector in India employs many kinds of people. At one end there are a limited
number of services that employ highly skilled and educated workers, such as managers,
lawyers, accountants, etc.

2. At the other end, there are a very large number of workers engaged in services, such as
small shopkeepers, repair persons, transport persons. These people barely manage to earn a
living and yet perform these services.

3. There is no alternative opportunity for them. Only a part of this sector is growing in
importance. (3 Marks Question)

Q9. How is tertiary sector different from other sectors? Give examples.

Ans. 1. The tertiary sector is different from the other two sectors because the other sectors
produce goods, but this sector does not produce goods by itself.

2. Instead, the tertiary sector activities help in the development of the primary and secondary
sectors. These activities are an aid or support for the production process

3. e.g., transport, communication, storage, banking, insurance, trade activities etc. For this
reason, this sector is also known as service sector. (3 Marks question)

Q10. Why is the tertiary sector becoming the most important sector in India? Give reasons.

Or

Evaluate the rising importance of tertiary sector over the years.

Ans. 1. In any country several basic services like transport, bank, insurance,
educational institutions, etc., are required and the government has to take responsibility for
the provision of these services.

(ii) The development of agriculture and industry lead to the development of services, such
as transport trade, storage, etc.

(iii) As income level rises, certain sections of people started demanding many services like
eating out, tourism, private hospitals, etc.

4. Certain new services such as those based on information and communication technology
have become important and essential.
5. Greater the development of the primary and secondary sectors more would be the demand
for such services. (3 marks question any 3 points, 5 Marks question 5 points)

Q11. “When a country develops, the contribution of primary sector declines and that of
secondary and tertiary sector increases.“ Analyze the statement.

Or

Describe the historical changes that have taken place in the sectors of the economy in the
developed countries.

Ans.

1. In the initial stages of development, the primary sector was the most important sector of
economic activity. As the methods of farming changed and agriculture sector began to prosper,
people began to take up other activities.

2. New methods of manufacturing were introduced; factories came up and started expanding.

3. The Secondary sector gradually became the most important in total production and
employment.

4. With the development of areas like transport and administration, the service sector kept on
growing. In the past 100 years, there has been a shift from the secondary to the tertiary sector
in developed countries.

5. The service sector has become the most important in terms of total production and
employment. This is the general pattern observed in developed countries. (5 Marks Question)

Q12. Explain the term GDP. Why are only ‘final goods and services ‘counted in GDP?

Ans. 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 sum of production in three
sectors gives GDP of the country.

The task of measuring GDP is undertaken by the central government ministry. This ministry with
the help of various government departments of all the Indian states and Union Territories,
collects information relating to total volume of goods and services and their prices.

Only final goods and services are counted in GDP because:

 1. The value of final goods already includes the value of all intermediate goods.

2. To count the value of the flour and wheat separately is therefore not correct because
then we would be counting the value of the same things several times. (1+2 Marks)

Q13. Why is NREGA in creating employment for the people in India.

Ans.
1. NREGA, 2005 is a law which is implemented by government of Indian in 200 districts of India.
2. It is referred to as ‘Right to Work’ because it guarantees 100days of employment in a year .
3. Under this scheme, the gram panchayat after proper verification will register households,
and issue job cards.
4. And in case of failure unemployment allowance will be given by government.

Q.14. What are the advantages of working in an organized sector?

Ans.
1. Workers in the organized sector enjoy security of employment.
2. They work only a fixed number of hours. If they work more, they have to be paid overtime.
3. They also get several other benefits from the employers like provident fund, gratuity, paid
leave,
4. They also get medical benefits, and, under the laws, the factory manager has to ensure
facilities like drinking water and a safe working environment.

Q15. . What are the disadvantages of working in an organized sector?

Or

Why is it necessary to give protection and support to the unorganized sector workers? Explain.

Ans.
1. The unorganized sector is characterized by small and scattered units which are largely
outside the controlof the government.
Workers working in an unorganized sector get fewer wages.
2. There is no provision of overtime, paid leave, holidays, leave due to sickness, etc.
3. . Employment is subject to high degree of insecurity.
Q16. “Workers are not exploited in organized sector. “Do you agree with the statement?
Explain.

Or

Workers are exploited in the unorganized sector. Do you agree with this view? Give reasons.

Ans. Unorganized Sector: Unorganized sector is a sector which has small and scattered units
largely outside the control of the government.

Yes, workers are exploited in the unorganized sector. Reasons are as follows:

1. There are no rules and regulations followed.

2. Jobs are low paid and often not regular.

3. Noprovision of overtime is there, and no paid holidays or leave is given.

4. Employment is not secure. People can be asked to leave without reason.

5. Work is seasonal in nature and temporary workers are employed. They become
unemployed after the season is over.

6. No other facilities like Provident Fund, Gratuity or sick leave are given.

7. Working conditions are often poor. No allowances are given.

8. No medical benefit is given.

( 3 marks question 3 points ,5 Marks question 5 points)

Q17. Why is there an urgent need to protect workers in the unorganized sector? Explain.

Ans.

1. They are paid low salaries.

2. Their jobs are not secure.

3. They have no retirement and medical benefits.

4. They are often exploited. (3 Marks question)

Q18. How can the workers in the unorganized sector be protected? Explain.

In the unorganized sector, mostly landless agricultural Laboure’s, small and marginal farmers,
share croppers and artisans are included.

These workers can be protected by the following ways:

1. Farmers need to be supported through adequate facility for timely delivery of seeds,
agriculture inputs, credit, storage and marketing outlets.

2. In urban areas, casual workers need government’s support for procuring raw material.

3. Small scale industries also need support for procuring raw material and marketing of the
goods. (3 Marks Question)

Q19. Differentiate between organised and unorganized sector.

Ans: Organized Sector:

1. It is the one where the terms of employment are regular and people have assured work.

2. They are registered by the government and have to follow its rules and regulations
which are given in various laws such as the Factories Act, Minimum Wages Act, etc.

3. It is called organized because it has some process and procedures.

4. Workers in the organized sector enjoy security of employment. They are expected to
work only a fix number of hours. If they work more, they have to be paid overtime by
the employer.

5. They also get several other benefits from the employers like paid leave, payment during
holidays, provident fund, pensions, gratuity, medical benefits, etc.

Unorganized Sector:

1. These are small and scattered units which are largely outside the control of the
government.

2. There are rules and regulations, but these are not followed.

3. Jobs here are low-paid and often not regular.

4. Employment is not secure as people can be asked to leave without any reason.
 5. There is no provision for overtime, paid leave, holidays, leave due to sickness, etc.

(3 Marks Question 3 points. 5 Marks Question 5 points)

Q20. Explain how public sector contributes to the economic development of a nation.

Ans. Public sector is an important sector for the development of economy.

1. There are several things needed by the society as a whole but which the private sector
will not provide at a reasonable cost. As huge sum of amount is needed which private
sector cannot afford, so public sector is needed there. For example, building bridges,
railway etc.

2. There are several basic activities which government has to support, for example, selling
electricity at lower cost, providing drinking water at affordable rate etc.

3. There are some activities which government has to perform like providing health and
education facilities. So public sector is needed.