NCERT Solutions for Class 10 Social Science Economics Chapter 2: Sectors of the Indian Economy help students to score good marks in the exams. These NCERT Solutions are prepared by expert teachers and based on the latest pattern and edition NCERT book. Here we have provided answers to all the questions in a very easy language.
Class 10 Economics Chapter 2 Sectors of the Indian Economy Questions and Answers
EXERCISE
Question 1: Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector has not increased to the same extent as production. (has/has not)
(ii) Workers in the tertiary sector do not produce goods. (tertiary/agricultural)
(iii) Most of the workers in the organised sector enjoy job security. (organised/unorganised)
(iv) A large proportion of labourers in India are working in the unorganised sector. (large/small)
(v) Cotton is a natural product and cloth is a manufactured product. [natural/manufactured]
(v) The activities in primary, secondary and tertiary sectors are interdependent. [independent/interdependent]
Question 2: 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
Answer: (iii) ownership of enterprises
Explanation: In public sector, ownership is with the government and in private sector ownership is in the hands of private individuals.
(b) Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) Information technology
Answer: (i) primary
Explanation: Primary sector forms a base for all the products we subsequently make and we take the raw material from natural sources.
(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
Answer: (ii) all final goods and services
Explanation: Sum of production in the three sectors is called GDP.
(d) In terms of GDP the share of tertiary sector in 2013 – 2014 is between _________ percent
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70
Answer: (iii) 50 to 60
Explanation: The tertiary sector has emerged as the largest producing sector in Indiareplacing the primary sector.
Question 3: Match the following:
| Problems faced by farming sector | Some possible measures |
| Unirrigated land | Setting up agro-based mills |
| Low prices for crops | Cooperative marketing societies |
| Debt burden | Procurement of food grains by government |
| No job in the off season | Construction of canals by the government |
| Compelled to sell their grains to the local traders soon after harvest | Banks to provide credit with low interest |
Answer:
| Problems faced by farming sector | Some possible measures |
| Unirrigated land | d) Construction of canals by the government |
| Low prices for crops | c) Procurement of food grains by government |
| Debt burden | e) Banks to provide credit with low interest |
| No job in the off season | a) Setting up agro-based mills |
| 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
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio
Answer:
(i) Tourist guide: He is appointed by the government, while dhobi, tailor and potter belong to the private sector. Dhobi, tailor and potter are self-employed.
(ii) Vegetable vendor: He is the only profession that does not require formal education. He belongs to the private and unorganised sector while the rest are professionally qualified.
(iii) Cobbler: The rest are workers in the public sector, while his profession is part of the private sector and does not require any qualification.
(iv) SAHARA Airlines: It is a private enterprise, while the rest are government undertakings.
Question 5: A research scholar looked at the working people in the city of Surat and found the following:
| Place of Work | Nature of employment | Percentage of working people |
| In offices and factories registered with the government | Organised | 15 |
| Own shops, office, clinics in marketplaces with a 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 Work | Nature of employment | Percentage of working people |
| In offices and factories registered with the government | Organised | 15 |
| Own shops, office, clinics in marketplaces with a formal license | Organised | 15 |
| People working on the street, construction workers, domestic workers | Unorganised | 20 |
| Working in small workshops usually not registered with the government | Unorganised | 50 |
The percentage of workers in the unorganised sector in this city is 70%. We find many organised sector enterprises in the unorganised sector because they want to evade taxes and refuse to follow the laws protecting the labourers.
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 (agriculture), secondary (manufacturing), and tertiary (services) sectors is essential for understanding an economy’s structure and development. It guides targeted policy-making, addressing specific needs and challenges of each sector. This categorization also reveals employment trends and labour market shifts, signaling industrialization or urbanization. It assists in planning for economic diversification, vital for sustainable growth, and aids in effective resource allocation. Additionally, it provides key economic indicators, like sector contributions to GDP, crucial for economic analysis and forecasting.
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: Focusing on employment and GDP in different economic sectors is important for several reasons.
- Employment: It provides insights into the labor market, indicating how many people are employed in each sector and the nature of their employment. This information is crucial for understanding the economic well-being of the population, trends in job creation, and areas where job opportunities may be expanding or shrinking.
- GDP Contribution: Assessing the contribution of each sector to the Gross Domestic Product (GDP) helps in understanding the economic importance and productivity of each sector. It shows where the majority of economic activity is concentrated and helps in identifying sectors that are driving economic growth.
However, focusing solely on employment and GDP might overlook other critical issues. Which are:
- Balanced regional development.
- Equality in income and wealth among the people of the country.
- How to eradicate poverty?
- Modernization of technology.
- Self-reliance of the country.
- 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: Some Samples of Work People Do and Their Classification
| SL. No. | Nature of work | Nature of Activity | Sector |
| 1 | Bank Clerk | Tertiary | Organized |
| 2 | Freelance Cartoonist | Tertiary | Unorganized |
| 3 | Construction Worker | Secondary | Unorganized |
| 4 | Doctor in AIIMS | Tertiary | Organized |
| 5 | DTC Bus Driver | Tertiary | Organized |
| 6 | Farmer | Primary | Unorganized |
| 7 | Guest House Receptionist | Tertiary | Unorganized |
| 8 | Mine Worker | Primary | Unorganized |
| 9 | Own Tailoring Shop | Tertiary | Unorganized |
| 10 | Public Sector Factory Supervisor | Secondary | Organized |
Question 9: How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer: While the primary sector involves extraction and production of raw materials (like agriculture, mining, fishing), and the secondary sector deals with manufacturing and processing (like factories, mills), the tertiary sector is focused on providing services rather than producing goods. Therefore, it is also known as the service sector.
Jobs in the tertiary sector frequently require a different skill set, such as interpersonal skills, customer service, and specialized professional knowledge, which is different from the more labour-intensive skills of the primary sector or the technical skills of the secondary sector.
Examples
- Primary Sector: Farming, fishing, forestry.
- Secondary Sector: Manufacturing cars, building houses, producing clothes.
- Tertiary Sector: Banking services, education, healthcare, IT services, hospitality, and retail.
Question 10: What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: Disguised unemployment refers to a situation where more people are employed in a job than actually needed. It’s not immediately visible as traditional unemployment because everyone is working, but their actual contribution to productive economic activity is minimal. This situation is also known as hidden Unemployment.
For example:
Example in Rural Areas: A common example is in agriculture. Imagine a family farm where the work requires only 3 people, but 5 are employed. The extra 2 people don’t contribute to increasing the farm’s output. Even if they were not working, the farm’s production would remain the same.
Example in Urban Areas: In an urban setting, disguised unemployment can be seen in family-run businesses like small shops or restaurants. For instance, a small shop might have multiple family members working there, but the actual business operation might require fewer hands. The additional family members, although employed, don’t proportionally increase the productivity of the shop.
Question 11: Distinguish between open unemployment and disguised unemployment.
Answer:
| Open Unemployment | Disguised unemployment |
| This occurs when people who are willing and able to work are unable to find employment. They are openly and actively seeking work but are unemployed. | It exists where more people are working in a job than are actually needed to produce the output. The surplus labor does not significantly contribute to overall productivity. |
| It is easily measurable and visible, as the individuals are clearly without work. | It’s not immediately visible as traditional unemployment because everyone appears to be working, but their employment does not increase productivity. |
| This kind of unemployment exists due to lack of resources. | The absence of alternative employment opportunities leads to this situation. |
| Example: An individual who has been laid off from a factory and is actively looking for another job but hasn’t found one yet. | Example: In a family farm, if five people are working where the work only requires three, the extra two are disguisedly unemployed. Their removal wouldn’t affect the output. |
Question 12: “Tertiary sector is not playing any significant role in the development of the 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 the Indian economy. The tertiary sector plays a significant role in the development of the Indian economy. It contributes a large share to India’s GDP, particularly through growth in IT, telecommunications, and financial services. This sector has also become a key source of employment, especially in urban areas, and has been instrumental in earning foreign exchange, notably in IT and IT-enabled services. Additionally, the tertiary sector supports the primary and secondary sectors with essential services like transportation and banking. Therefore, its impact on India’s economic growth, employment generation, and technological advancement is substantial.
Question 13: 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:
- Skilled and Educated Professionals: This group includes individuals with specialized skills and education. They are employed in areas like IT and ITES (Information Technology Enabled Services), finance, education, healthcare, and other professional services. These jobs often require a higher level of education and specialized training.
- Unskilled or Semi-skilled Workers: This category consists of people engaged in relatively lower-skilled jobs that may not require extensive education or specialized training. Examples include roles in retail, hospitality, transportation, and basic administrative services.
Question 14: Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer: Workers in the unorganised sector are often exploited due to the lack of regulation, resulting in poor working conditions, low wages, and absence of job security. They usually don’t receive benefits like health insurance or paid leave, and have limited power to negotiate better terms, partly due to the lack of union representation. This combination of factors leads to economic instability and impacts their overall well-being.
OR
The view that workers are exploited in the unorganised sector is widely supported by various factors:
- Lack of Regulation: The unorganised sector is often not regulated by the government, leading to the absence of labor laws enforcement, which can result in exploitation.
- Poor Working Conditions: Workers in this sector frequently face poor working conditions, such as long hours, lack of job security, and unsafe work environments.
- Low Wages: The wages in the unorganised sector are generally lower and often do not meet the minimum wage standards.
- No Job Security: Workers usually lack job security and benefits like pensions, health insurance, and paid leave.
- Limited Bargaining Power: Workers in the unorganised sector often have little to no bargaining power to negotiate better terms due to the lack of union representation.
Question 15: 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:
Organised Sector:
- Characterized by formal employment conditions.
- Employees have job security and work under defined terms and conditions.
- They are registered by the government and follow its rules and regulations.
- Employees in this sector enjoy benefits like regular salaries, pensions, health insurance, and paid leave.
Unorganised Sector:
- Lacks formal employment conditions.
- Jobs here are often characterized by lack of job security and absence of formal contracts.
- Workers in this sector usually do not receive regular salaries or benefits like pensions, health insurance, or paid leave.
- This sector is not regulated by the government, and labour laws are often not applied.
Question 16: Compare the employment conditions prevailing in the organised and unorganized sectors.
Answer: The employment conditions in the organised and unorganised sectors differ significantly:
Organised Sector:
- Job Security: Employees typically have greater job security with defined terms of employment.
- Work Conditions: Generally better with adherence to labour laws and regulations.
- Benefits: Employees often receive benefits like pensions, health insurance, and paid leave.
- Salary: Regular and as per government or industry standards.
- Regulation: Strictly regulated by the government with enforcement of labour laws.
Unorganised Sector:
- Job Security: Limited to no job security with no formal contract.
- Work Conditions: Often poor and not regulated, with no adherence to labour laws.
- Benefits: Rarely any benefits like health insurance or paid leave.
- Salary: Irregular and often below the minimum wage standards.
- Regulation: Largely unregulated with minimal government intervention.
Question 17: Explain the objective of implementing the NREGA 2005.
Answer: The National Rural Employment Guarantee Act (NREGA) 2005 aims to:
- Provide 100 days of guaranteed wage employment per year to each rural household.
- Enhance livelihood security in rural areas.
- Create durable assets like roads and irrigation facilities.
- Empower the rural poor by providing a stable income source.
- Strengthen grassroots governance via Panchayati Raj Institutions.
Question 18: Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer: Some Samples of Work People Do and Their Classification
| SL. No. | Nature of work | Nature of Activity | Sector |
| 1 | Bank Clerk | Tertiary | Organized |
| 2 | Freelance Cartoonist | Tertiary | Unorganized |
| 3 | Construction Worker | Secondary | Unorganized |
| 4 | Doctor in AIIMS | Tertiary | Organized |
| 5 | DTC Bus Driver | Tertiary | Organized |
| 6 | Farmer | Primary | Unorganized |
| 7 | Guest House Receptionist | Tertiary | Unorganized |
| 8 | Mine Worker | Primary | Unorganized |
| 9 | Own Tailoring Shop | Tertiary | Unorganized |
| 10 | Public Sector Factory Supervisor | Secondary | Organized |
Question 19: Discuss and fill the following table giving one example each from your area.
| Well-managed organisation | Badly-managed organisation | |
| Public sector | ||
| Private sector |
Answer:
| Well-managed organisation | Badly-managed organisation | |
| Public sector | Delhi Metro Rail Corporation | Milk Co-operative society |
| Private sector | Reliance Mobile | Satyam |
Question 20: Give a few examples of public sector activities and explain why the government has taken them up.
Answer: Banks, transport, irrigation, electricity, water and all the basic things that are necessary for people, come under the public sector. The government undertakes these activities to ensure accessibility and affordability of essential services, promote equity, especially for the economically weaker sections, and support economic stability and development. These sectors are vital for public welfare and societal progress, often prioritized by the government over profit-driven motives.
Question 21: Explain how public sector contributes to the economic development of a nation.
Answer: The public sector contributes to a nation’s economic development by:
- Developing infrastructure like roads and bridges, essential for trade.
- Providing essential services such as healthcare and education, crucial for population well-being and productivity.
- Creating employment opportunities, enhancing economic stability.
- Regulating markets to maintain stability and protect consumers.
- Investing in research and development, fostering innovation.
- Promoting social equity through welfare programs, reducing income inequality.
This sector plays a vital role in laying the groundwork for economic growth and ensuring equitable access to services.
Question 22: The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
Answer: Workers in the unorganised sector need protection in:
- Wages: They often receive below minimum wages and face irregular payments, as seen in daily wage laborers in construction or agriculture.
- Safety: There’s a lack of safety standards, with workers in small manufacturing units facing hazardous conditions without proper safety equipment.
- Health: Health risks are high due to inadequate healthcare facilities and exposure to harmful environments, like in the case of manual scavengers.
These workers are vulnerable due to the absence of formal contracts and weak labor law enforcement, highlighting the need for improved legal and social protections.
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 ₹ 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:
| Organised Sector | Unorganised Sector | Total | |
| No. of workers | 4,00,000 | 11,00,000 | 15,00,000 |
| Income (₹) | 32,000 million | 28,000 million | 60,000 million |
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 more. 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:
| Year | Primary | Secondary | Tertiary |
| 2000 | 52,000 | 48,500 | 1,33,500 |
| 2013 | 8,00,500 | 10,74,000 | 38,68,000 |
(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?
Answer:
(i) In 2000,
Share of primary sector = 22.22%
Share of secondary sector = 20.73%
Share of tertiary sector = 57.04%
In 2013,
Share of primary sector = 13.94%
Share of secondary sector = 18.70%
Share of tertiary sector = 67.36%
(ii)
(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has increased by 10%, while that of the primary sector has almost halved. The secondary sector has grown by about 2% in the last 13 years.