Chapter 2 Sectors of the Indian Economy NCERT Solutions for Class 10 Economics

NCERT Solutions for Class 10 Economics Chapter 2 Sectors of the Indian Economy – Important Questions

Given in this post  is NCERT Solutions for Class 10 Economics Chapter 2 Sectors of the Indian Economy. The important questions we have compiled will help the students to brush up on their knowledge about the subject. Students can practice Class 10 Economics important questions to understand the subject better and improve their performance in the board exam. The NCERT solutions provided here will also give students an idea about how to write the answers.

MCQ BASED QUESTIONS

Q1 The sectors are classified into public and private sector on the basis of- (NCERT QUESTION)

A. employment conditions

B. the nature of economic activity

C. ownership of enterprises

D. number of workers employed in the enterprise

Ans C. ownership of enterprises

 

Q2 Production of a commodity, mostly through the natural process, is an activity in _________ sector. (NCERT QUESTION)

A. primary

B. secondary

C. tertiary

D. information technology

Ans A. primary

 

Q3 GDP is the total value of _____________ produced during a particular year. (NCERT QUESTION)

A. all goods and services

B. all final goods and services

C. all intermediate goods and services

D. all intermediate and final goods and services

Ans B. all final goods and services

 

Q4 In terms of GDP, the share of tertiary sector in 2010-11 is ___________. (NCERT QUESTION)

A. between 20 to 30%

B. between 30 to 40%

C. between 50 to 60%

D. 70%

Ans C. between 50 to 60%

 

Q5 Which of the following examples fall under an organized sector? (SAMPLE PAPER 2021-22)

A. A daily wage labourer working for a contractor. 

B. An engineer getting all employment benefits. 

C. A cleaning staff in a private school. 

D. A tailor stitching clothes at his home.

Ans B. An engineer getting all employment benefits. 

 

Q6 Mahatma Gandhi National Rural Employment Guarantee Act 2005 states a guarantee of minimum 100 days of employment per year. If the government is unable to fulfill these 100 days of employment, the government would have to ______________. (SAMPLE PAPER 2021-22)

Choose the correct option: 

A. Pay the compensation in lieu of these days 

B. Provide another scheme for the same

C. Pay at least 1/3 percent allowance 

D. Provide health care as compensation

Ans A. Pay the compensation in lieu of these days

Q7 A woman works at a sweet shop in her village on a contract basis and gets meagre salary after working the entire day. She doesn’t get any holidays or paid leave, rather her employer deducts her salary whenever she is absent from work. Find out in which of the following sectors she is working? (SAMPLE PAPER 2021-22)

A. Primary Sector 

B. Service Sector 

C. Organized Sector 

D. Unorganised Sector

Ans D. Unorganised Sector

 

Q8 According to 2017-2018 data, the share of different sectors in employment (percentage) in India was  

  • Primary Sector – 44%  
  • Secondary Sector – 25%  
  • Tertiary Sector – 31% 

Out of the three sectors, why did the ratio of employment in the Primary Sector high? Select the most suitable option from the following: (SAMPLE PAPER 2021-22)

A. Workers in the Primary Sector are underemployed 

B. Low job opportunities in Secondary Sector 

C. Efforts of labour are not equivalent in all the sectors 

D. Outsourcing of job opportunities in Secondary Sector

Ans  A. Workers in the Primary Sector are underemployed

 

Q9 A man is employed on a food processing farm where he has to do a lot of manual work. His wife and daughter also help him in his work on the farm every day. Which type of employment is this an example? (SAMPLE PAPER 2021-22)

A. Underemployment 

B. Seasonal employment 

C. Over employment 

D. Cyclical employment

Ans A. Underemployment

 

Q10 Which of the following professions belongs to the Tertiary Sector of economy? (SAMPLE PAPER 2019-20)

A. Fisherman 

B. Farmer 

C. Factory worker 

D. Teacher 

Ans D. Teacher

 

Q11 Arrange the following in the correct sequence – (SAMPLE PAPER 2019-20)

i. Transporting cloth to the workshops 

ii. Sale in shops and showrooms 

iii. Spinning the yarn 

iv. Weaving of the fabric

Options

A. i–iv–iii–ii 

B. iii –iv—i–ii 

C. iv—i–ii–iii 

D. iii—iv–ii–i 

Ans B. iii –iv—i–ii 

 

Q12 Which of the following comes under the tertiary sector? 

A. transport

B. communication

C. Both A and B

D. none of the above

Ans C. Both A and B

 

Q13 Service sector also includes some essential services that may not directly help in the production of goods. State whether true or false. 

A. True

B. False

Ans True

 

Q14 In the past 100 years, there has been a further shift from _______ to ______ in developed countries. This has become the most important in terms of total production. 

A. secondary to tertiary sector

B. primary to tertiary sector

C. primary to secondary sector

D. none of the above

Ans A. secondary to tertiary sector

 

Q15 In India ____________ was the least producing sector in 2010-11. 

A. primary sector

B. secondary sector

C. tertiary sector

D. quaternary sector

Ans A. primary sector

 

Q16 Which of the following statements are true regarding the services sector? 

A. As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping.

B. Over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. 

C. In the year 2010-11, the tertiary sector emerged as the largest producing sector in India, replacing the primary sector.

D. All of the above are true.

Ans D. All of the above are true.

 

Q17 The _______ continues to be the largest employer in India. 

A. quaternary sector

B. tertiary sector

C. secondary sector

D. primary sector

Ans D. primary sector

 

Q18 More than half of the workers in the country are working in the primary sector, mainly in _________. 

A. fishing

B. mining

C. agriculture

D. none of the above

Ans C. agriculture

 

Q19 The National Rural Employment Guarantee Act was passed by the Government of India in __________. 

A. 2005

B. 2010

C. 2004

D. 2014

Ans A. 2005

 

Q20 Under MNREGA 2005, all those who are able to, and are in need of work are guaranteed _______ of employment in a year by the government. 

A. 180 days

B. 50 days

C. 200 days

D. 100 days

Ans D. 100 days

 

Q21 Which of the following statements are true regarding the organised sector?

A. Workers in the organised sector enjoy the security of employment.

B. They are expected to work only a fixed number of hours.

C. If they work more, they have to be paid overtime by the employer.

D. All of the above.

Ans D. All of the above.

 

Q22 The unorganised sector is characterised by small and scattered units which are largely outside the control of the_______. 

A. employers

B. private individuals

C. government

D. employees

Ans C. government

 

Q23 Workers in ______________ sector are under-employed. 

A. IT

B. agricultural

C. manufacturing

D. none of the above

Ans B. agricultural

 

Q24 Which of the following statements are true regarding the unorganised sector?

A. This sector includes a large number of people who are employed on their own doing small jobs.

B. Employment is not secure.

C. People can be asked to leave without any reason.

D. All of the above.

Ans D. All of the above.

 

Q25 As per the same study by the former Planning Commission, if tourism as a sector is improved, every year we can give additional employment to more than _______ people. 

A. 20 lakhs

B. 25 lakhs

C. 10 lakhs

D. 35 lakhs

Ans D. 35 lakhs

 

Important Questions and Answers

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Class 10 Social Science Important Questions and Answers
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Class 12 English Important Questions and Answers

 

 

1 MARK QUESTIONS

 

Q1 Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how. (NCERT QUESTION)

Ans – It helps the economists to understand the problems and opportunities in an economy in a better way. The government can utilise the information to bring various welfare programs and supported measures to grow the economy so that there would be better employment generation.

 

Q2 What is the primary sector?

Ans – The activities that are undertaken directly using natural resources fall under primary sector. The industries are engaged in production or extraction of natural resources such as ores, crops and oil.

 

Q3 Give an example of the primary sector.

Ans – The cultivation of cotton takes place within a crop season. For the growth of cotton plant, we depend mainly, but not entirely on natural factors such as rainfall, sunshine and climate. The product of this activity, cotton is a natural product.

 

Q4 How does dairy activity fall under the primary sector?

Ans – In the activity of dairy, we are dependent on the biological process of the animals and availability of fodder, etc. The product, milk, also is a natural product.

 

Q5 Why is the primary sector also called agriculture and related sector?

Ans – Since most of the natural products we get from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sectors.

 

Q6 What is the secondary sector? 

Ans – The secondary sector covers activities in which natural products are processed through ways of manufacturing that we associate with industrial activity. The product is not produced by nature but by some process in manufacturing is necessary.

 

Q7 Give an example of the secondary sector.

Ans – Using cotton fiber from the plant, we spin yarn and weave cloth. Using sugarcane as raw material, we make sugar or gur, are some of the examples of the secondary sector.

 

Q8 Why is the secondary sector also called an ‘Industrial sector’?

Ans  – Since this sector gradually became associated with the different kinds of industries that came up, it is called the industrial sector. The secondary sector includes industries that produce a finished usable product.

 

Q9 Which activities are categorised under the tertiary sector?

Ans – The activities that help in the development of primary and secondary sectors are called tertiary activities. These activities, by themselves, do not produce a good but they are a support for the production process.

 

Q10 Give examples of tertiary activities.

Ans – Goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times it may been necessary to store these in godowns. We may need to communicate with traders or borrow money from banks, etc to help production and trade. These are examples of tertiary activities.

 

Q11 Why is the Tertiary sector also called the Service sector? 

Ans – Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

 

Q12 Which essential services are included in the tertiary sector?

Ans – Service sector includes some essential services that may not directly help in the production of goods. For example, we require teachers, doctors and those who provide personal services such as washermen, barbers, cobblers, lawyers and people to do administrative and accounting work.

 

Q13 What is GDP?

Ans- GDP is Gross Domestic Product. The sum of the production in three sectors gives what is called GDP.

 

Q14 Who is measuring GDP of India?

Ans- In India, the mammoth task of measuring GDP is undertaken by a Central Government Ministry. This ministry, with the help of various government departments of all Indian states and union territories, collects information relating to the total volume of goods and services and their prices and then estimates the GDP. 

 

Q15 What changes have been brought in Primary sectors of India?

Ans- As the methods of farming changed and the agriculture sector began to prosper, it produced much more food than before. Many people could now take up other activities like transporters, administration or the army.

 

Q16 What changes can be seen in the Secondary sector of India?

Ans– New methods of manufacturing were introduced, factories came up and started expanding. People from rural areas migrated to work in factories and demands for manufactured goods has also increased.

 

Q17 What development has taken place in the Tertiary sector of India?

Ans – The service sector has become the most important in terms of production. Most of the working people are also employed in service sector.

 

Q18 Which sector has grown the most over thirty years?

Ans-  It is the tertiary or service sector, which has grown the most over the thirty years. 

 

Q19 Which basic services are provided by the government in a country?

Ans- In any country, services such as hospitals, educational institutes, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies can be considered basic services. It is the responsibility of the government to provide these basic services.

 

Q20 How does development of primary and secondary sectors demand for services?

Ans The development of agriculture and industry leads to the development of services such as transport, trade, storage, etc. Greater the development of the primary and secondary sectors, more would be the demand for such services.

 

Q21 Which services are more in demand after the income level rises in cities? 

Ans- As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training, etc.

 

Q22 Which new services have been introduced over the past decade?

Ans- Certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.

 

Q23 Which kind of workers are not growing economically in the Tertiary sector?

Ans- These are a large number of workers engaged in services such as small shopkeeper, repair persons, transport persons, daily wage earners, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.

 

Q24 Why are a larger number of people employed in the Primary sector in India even today?

Ans- It is because not enough jobs are created in the secondary and tertiary sectors. Even though industrial output or the production of goods went up by nine times during the period, employment in the industry went up only three times.

 

Q25 What does underemployment mean?

Ans- In a situation of underemployment, people are apparently working but all of them are made to work less than their potential.

 

Q26 What is disguised unemployment?

Ans- It is a situation where more than required people are working and even if some people are removed from the work, it won’t be affected. Hence, it is called disguised unemployment.

 

Q27 How can the problem of underemployment be reduced by the government?

Ans- Suppose a new dam is constructed and canals are dug to irrigate farms. This could lead to a lot of employment generation within the agricultural sector itself reducing the problem of underemployment.

 

Q28 Which industries and services can help the underemployed people in rural areas?

Ans- Setting up dal mills to procure and process them, opening cold storages to share their products like potatoes and onions and sell them when the price is good. In villages, near forest areas, honey collection centres can be introduced where farmers can come and sell wild honey.

 

Q29 What does MGNREGA mean?

Ans- It is Mahatma Gandhi National Rural Employment Guarantee Act 2005.

 

Q30 What is an organised sector?

Ans- Organised sectors cover those enterprises or places of work where the terms of employment are regular and therefore people are assured of work. 

 

Q31 What benefits does a worker enjoy in an organised sector?

Ans- Workers in organised sectors enjoy security of employment. They are expected to work only for a fixed number of hours. They get paid leaves, payment during holidays, provident fund and gratuity, etc.

 

Q32 What is an unorganised sector?

Ans-The unorganised sector is characterised by small and scattered units which are largely outside the control of the government.

 

Q33 What are the drawbacks of an unorganised sector?

Ans- Jobs here are often low paid and often not regular. No provision for creative, paid leave, holidays, leave due to sickness, etc. Employment is not secured.

 

Q34 Why are a large number of people forced to enter the unorganised sector jobs?

Ans- The organised sector offers jobs that are most sought after. But the employment opportunities in the organised sector have been expanding very slowly. Many organised sectors also refuse to follow laws that protect labourers. Therefore, a large number of people are forced to enter the unorganised sector of jobs which pay a very low salary.

 

Q35 Which people are vulnerable in the unorganised sector of rural areas? 

Ans- In the rural areas, the unorganised sector mostly comprises landless agricultural labourers, small and marginal farmers, share croppers and artisans like weavers, blacksmiths, carpenters and goldsmiths, etc. These are vulnerable people who need protection. 

 

Q36 How can small and marginal farmers be supported?

Ans- Small and marginal farmers need to be supported through adequate facilities for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.

 

Q37 Which people are vulnerable in unorganised sectors of urban areas? 

Ans- In the urban areas, unorganised sector comprises mainly of workers in small-scale industry, casual workers in construction, trade and transport, etc., and those who work as street vendors, head load workers, garment makers, ragpicker, etc., are vulnerable, so they need to be protected.

 

Q38 Why do scheduled class and scheduled tribe workers also need to be protected by the government?

Ans- Majority of workers from SC,ST and backward communities find themselves in unorganised sectors. Besides getting the irregular and low paid work, these workers also face social discrimination. Therefore, their protection is necessary.

 

Q39 What is the Public sector?

Ans- In the Public sector, the government owns most of the assets and provides all the services.

 

Q40 What is the main purpose of the Public sector? 

Ans- The purpose of the public sector is not just to earn profit but also to think about social justice.

 

Q41 Give examples of the Public sector.

Ans-  Railways, post offices, banks, etc., are owned by the government so they fall under public sector.

 

Q42 What is the Private sector? 

Ans- In the private sector, ownership of assets and delivery of service is in the hands of private individuals or companies.

 

Q43 What is the objective of the private sector?

Ans-  Private sectors are guided by the motive to earn profits. To get such services, we have to pay money to these individuals and companies.

 

Q44 Which activities are undertaken only by the government, not by the private sector?

Ans Some of the activities need a large sum of investment, which is beyond the capacity of the private sector. Even if the private sectors provide these facilities, they would charge a high rate for their use. 

 

Q45 Which activities are undertaken only by the Public sector?

Ans- Construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, etc., have to be undertaken by the government, who makes it sure that these facilities are available for everyone.

 

Q46 Which activities are supported by the government?

Ans- The private sector may not continue their production or business unless the government encourages it, like selling electricity at the cost of generation may push up the costs of production of goods in many industries. Government here steps in by producing and supplying electricity at rates which these industries can afford. Government has to bear part of the cost. 

 

Q47 How does the government support both farmers and consumers? 

Ans- The government in India buys wheat and rice from farmers at a fair price. This it stores in its godowns and sells at a lower price to consumers through ration shops. Here the government has to bear some of the cost. In this way, the government supports both farmers and consumers.

 

Q48 How can you say that provision of education is the responsibility of the government? 

Ans-  Running proper schools and providing quality education, particularly elementary education, is the duty of the government. India’s size of illiterate population is one of the largest in the world, so the government must spend on it.

 

Important Videos Links

Assertion-Reason based questions:

 

Q1 In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and chose the correct option:  (SAMPLE PAPER 2019-20)

Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector. 

Reason (R): The value of final goods already includes the value of all the intermediate goods. 

Options: 

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 1. Both A and R are true and R is the correct explanation of A.

 

Q2 Assertion (A): The unorganised sector offers jobs that are the most sought-after. 

Reason (R): But the employment opportunities in the organised sector have been expanding very slowly. 

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 4. A is wrong but R is correct because the organised sector offers jobs that are the most sought-after instead of the unorganised sector.

 

Q3 Assertion (A): The value of final goods already includes the value of all the intermediate goods that are used in making the final good. 

Reason (R): The value of final goods and services produced in each sector during a particular year provides the total production of the sector for the next two years.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 3. A is correct but R is wrong.

 

Q4 Assertion (A): The Government of India buys wheat and rice from farmers at a fair price.

Reason (R): Public sector contributes to economic development.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 1. Both A and R are true and R is the correct explanation of A.

 

Q5 Assertion (A): In India, the mammoth task of measuring GDP is undertaken by a state government ministry. 

Reason (R): With the help of various government departments of all the Indian states and union territories, the central ministry collects information relating to total volume of goods and services and their prices and then estimates the GDP.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 4. A is wrong but R is correct because the task of measuring GDP is undertaken by a central government.

 

Q6 Assertion (A): Disguised unemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Everyone is working, no one is fully employed.

Reason (R): In actual fact, labour effort gets divided. 

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 2. Both A and R are true but R is not the correct explanation of A as in disguised unemployment, no one is fully employed.

 

Q7 Assertion (A): Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.

Reason (R): All services sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity and earns a high income.

Options:

  1. Both A and R are true and R is the correct explanation of A. 
  2. Both A and R are true but R is not the correct explanation of A. 
  3. A is correct but R is wrong. 
  4. A is wrong but R is correct.

Ans 1. Both A and R are true and R is the correct explanation of A.

Fill in the blanks in the following:

 

Q1 Employment in the service sector __________ increased to the same extent as production. (Has/has not) (NCERT QUESTION)

Ans Has not

Q2 Workers in the ___________ sector do not produce goods. (Tertiary/agriculture) (NCERT QUESTION)

Ans Tertiary

Q3 Most of the workers in the __________ sector enjoy job security. (Organised/unorganised) (NCERT QUESTION)

Ans Organised

Q4 A ________ population of labourers in India are working in the unorganised sector. (Large/small) (NCERT QUESTION)

Ans Large

Q5 Cotton is a ________ product and cloth is a ___________ product. (Natural/manufactured) (NCERT QUESTION)

Ans Natural; manufactured

Q6 The activities in primary, secondary and tertiary sectors are _____________. (Independent/interdependent) (NCERT QUESTION)

Ans Interdependent

Q7 The purpose of the public sector is not to first earn profits but to promote ____________________.

Ans Public welfare

Q8 In India the largest employer is the _____________ sector.

Ans Primary

 

2 MARK QUESTIONS

 

Q1 How is the tertiary sector different from other sectors? Illustrate with a few examples. (NCERT QUESTION)

Ans 

  1. The other sectors provide a product whereas the tertiary sectors do not produce a good but they are an aid or support for the production process. For example, goods that are produced in the primary and secondary sector would need to be transported by trucks or trains and then sold in the wholesale and retail shops.
  2. Transport, storage, communication, banking and trade are few examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also known as the service sector.

 

Q2 What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas. (NCERT QUESTION)

Ans 

  1. Disguised unemployment is a type of unemployment where more people are employed or working than necessary and where they are made to work less than their potential. This situation is also known as hidden unemployment.
  2. Example in rural areas: In a rural area, a family of 9 members work on the same agriculture plot, even if 4 of them are withdrawn from the work, there would be no reduction in the output from the plot. Thus, each one is doing some work but no one is fully employed.

Example in urban areas: This type of unemployment could be seen mostly in the service sector. A family has all its members working in one shop or a small business, but it could actually be managed by a few members.

 

Q3 Distinguish between open unemployment and disguised unemployment. (NCERT QUESTION)

Ans 

Open unemployment: This is a situation where a large section of the labour force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons.

Disguised unemployment: This exists where part of the labour force is either left without work or is working in a redundant manner, where worker productivity is essentially zero. It is unemployment that does not affect aggregate output.

 

Q4 “Tertiary sector is not playing any significant role in the development of Indian economy.” Do you agree? Give reasons in support of your answer. (NCERT QUESTION)

Ans 

No, I do not agree with the statement. The reasons are as follows:

In terms of GDP, the tertiary sector has emerged as the largest producing sector in India surpassing the other two sectors; primary and secondary. In the year 1971-72, the share of the tertiary sector in GDP was about 35% which increased to 58% in 2011. Over the past 40 years from 1972 to 2011, while the production in all the three sectors increased, the tertiary sector has gained the most.

Also the share of employment in the tertiary sector between the same periods was nearly 27%.

 

Q5 Service sector in India employs two different kinds of people. Who are these?  (NCERT QUESTION)

Ans 

(i) Service sector in India employs highly skilled and educated people in multinational companies, public sector and several private enterprises. This sector enhances the economy of the country. They are an asset as they add up high income in the national income of the country.

(ii) Low skilled and less educated people are also employed in the service sector but most of them are uneducated. Therefore, they are working in unorganised sectors. They are employed as painters, plumbers, repair persons, etc. They are doing this work because they do not have better opportunities.

 

Q6  research scholar looked at the working people in the city of Surat and found the following: (NCERT QUESTION)

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 market places wit 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

What is the proportion of workers in the unorganised sector in this city (in %)? 

Ans 

In the organised sector there is 15 + 15 = 30% people

In the unorganised sector there is 20 + 50 = 70% people

 

Q7 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. (NCERT QUESTION)

Ans – Classification according to the nature of activity and according to their sector:

Nature of work Nature of activity Sector
Bank clerk Tertiary Organised
Construction worker Tertiary Unorganised
Farmer Primary Unorganised
DTC bus conductor Tertiary Organised
Freelancer Tertiary Unorganised
Public sector factory worker Secondary Organised
Own tailoring shop Tertiary Unorganised

 

Q8 How are the activities in the economy classified on the basis of employment conditions? (NCERT QUESTION)

Ans- They are mainly classified in two types:

Organised sector Unorganised sector
The enterprises or place of work where the terms of employment are regular and therefore people have assured work. 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, Payment of Gratuity Act, Shops and Establishment Act, etc. Workers enjoy security of employment. They work only a fixed number of hours. If they work more they get paid extra. Workers enjoy benefits like paid leaves, provident fund and medical benefits.  The enterprises or place of work are not registered by the government and do not follow any rules and regulations. There are no terms of employment. Workers do not enjoy security of employment. There is no fixed number of hours. Workers do not enjoy any benefits. 

 

Q9 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? (NCERT QUESTION)

Ans 

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 large portion of workers is working in the unorganised sector, the per capita earning of those in the organised sector is more. The government should encourage the entrepreneurs in the unorganised sector to change them into the organised sector. Moreover, the government should introduce some incentives so that more industries could be opened up in the organised sector.

 

Q10 The following table gives the GDP in rupees (crores) by the three sectors. (NCERT QUESTION)

Year Primary  Secondary  Tertiary 
1950 80,000 19,000 39,000
2011 8,65,000 13,70,000 30,10,000

Calculate the share of the three sectors in GDP for 1950 and 2011.

Ans Share for 1950:

(i) Primary sector = (80000 / 138000) x 100 = 57.97%

(ii) Secondary sector = (19000 / 138000) x 100 = 13.77%

(iii) Tertiary sector = (39000 / 138000) x 100 = 28.26%

Share for 2011:

(i) Primary sector = (865000 / 5245000) x 100 = 16.49%

(ii) Secondary sector = (1370000 / 5245000) x 100 = 26.12%

(iii) Tertiary sector = (3010000 / 5245000) x 100 = 57.39%

GDP (in crores)

Year Primary  Secondary  Tertiary  Total
1950 80,000 19,000 39,000 1,38,000
2011 8,65,000 13,70,000 30,10,000 50,45,000

 

Q11 What are the different types of unemployment in India?

Ans 

  1. Under employment or disguised unemployment: A situation where there are more people in agriculture than necessary. So, even if you move a few people out, production will not be affected. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence, it is also called disguised unemployment.
  2. Seasonal unemployment: When people are unemployed for a particular season, it is called seasonal unemployment. For example, farmers are ploughing land only for rabi season, then they become unemployed for the rest of the seasons.

 

3 MARK QUESTIONS

 

Q1 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. (NCERT QUESTION)

Ans 

  1. GDP mainly gives a summarized picture of the economy and contribution by various sectors. 
  2. It helps in giving the policy makers a ready reference. Therefore, GDP, in terms of economic performance has its own importance while analysis.
  3. All the economic activities are done with the sole purpose of earning livelihood and hence, data regarding employment generation is important. Apart from this information, we also need to look at the growth pattern in various sectors; on different parameters.

 

Q2 Compare the employment conditions prevailing in the organised and unorganised sector. (NCERT QUESTION)

Ans 

  1. The conditions prevailing in both the sectors are vastly different. 
  2. The organised sectors have companies that are registered with the government and therefore, it offers job security, pension, health and other benefits, fixed working hours. 
  3. Whereas, the unorganised sector consists of the opposite factors. There is no job security, no pension after retirement, no benefits of provident funds or healthcare, unfixed working hours and no guarantee of safe working conditions.

 

Q3 Explain the objective of implementing the MGNREGA 2005. (NCERT QUESTION)

Ans 

The objective of implementing the MGNREGA 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. The central government made a law implementing the right to work in 200 districts.
  3. MGNREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.

 

Q4 Using examples from your area compare and contrast the activities and functions of private and public sectors. (NCERT QUESTION)

Ans 

S. No. Public sector Private sector
1. The main aim of this sector is public welfare. The main aim of this sector is to earn maximum profit.
2. It is controlled and managed by the government. It is controlled and managed by an individual or group of individuals.
3. The sector provides basic facilities like education, health, food and security to the people, for example, BSNL, the post office. The sector provides consumer goods to the people. For example – TISCO, Reliance.

 

Q5 Give a few examples of public sector activities and explain why the government has taken them up. (NCERT QUESTION)

Ans 

AIIMS: To provide quality health services at a reasonable rate was the main purpose of the government to start this, besides medical education.

Railways: Only the government can invest a large sum of money on a public project with long gestation period. And also to ensure and provide transportation at cheap rates.

Electronic Power Generation by NTPC: The government has taken this up to provide electricity at a reasonable cost to consumers.

 

Q6 Differentiate between economic and non-economic activities. Give any two points. 

Ans (i) Economic activities are such activities which get you some income while performing them. For example, a doctor earning his income by treating his patients.

(ii) Non-economic activities are activities which do not earn you any income. For example, a doctor treating his own family members doesn’t earn any income. 

 

Q7 In what ways can employment be increased in urban areas?

Ans 

  1. Rapid industrialisation can create employment opportunities for a number of people in urban areas. 
  2. Tourism can be developed in cities providing a massive number of jobs by opening hotels, restaurants for the tourists.
  3. Setting up of new services like IT has also opened up new vistas for plenty of people and provided jobs in urban areas.

 

Q8 How would income and employment increase if farmers were provided with irrigation and marketing facilities? 

Ans 

  1. Suppose a new dam is constructed and canals are dug to irrigate many such farms, it could lead to a lot of employment generation within the agricultural sector itself and in reducing the problem of underemployment.

 

  1. Farmers are required to transport their products to a nearby town. If the government invests some money in transportation and storage of crops or makes better rural roads so that mini trucks can reach everywhere. This activity can provide productive employment to not just farmers but also others such as those in services like transport or trade.

 

Q9 What is an organised sector? Give any three benefits of the organised sector.

Ans 

  1. Organised sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. They are registered by the government.
  2. Benefits of the organised sector:

(i) Workers enjoy security of employment. They are expected to work only for a fixed number of hours. 

(ii) If they work more, they have to be paid overtime by the employer.

(iii) They get paid leaves, payment during holidays, provident fund, gratuity, etc.

 

Q10 What do you mean by ‘unorganised sector’? Give two disadvantages of the unorganised sector. 

Ans 

  1. Unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
  2. Two disadvantages: 

(i) Employment is not secure.

(ii) Jobs here are low-paid and often not regular and there is no provision for overtime, paid leaves, holidays, etc.

 

Q11 Why is the public sector required to provide certain things at a reasonable cost? 

Ans 

(i) The purpose of the public sector is not just to earn profits but to think about the social benefits also.

(ii) There are several things needed by the society as a whole but which the private sector will not be able to provide at a reasonable cost. 

(iii) Some of these require large sums of money to be spent, which is beyond the capacity of the private sector.

 

Q12 Why is tertiary sector also called ‘service sector’? 

Ans 1. Since the activities of the tertiary sector generate services rather than goods, it is called the service sector. 

  1. It includes some essential services that may not directly help in the production of goods. We require teachers, doctors and those who provide personal services such as washermen, barbers, cobblers, lawyers and people to do administrative and accounting work. 
  2. In recent times, certain new services based on information technology such as Internet cafes, ATM booths, call centres, software companies, etc. have become important. 

 

Q13 Other than agriculture, in which sectors can underemployment occur? 

Ans 

  1. Underemployment can also happen in other sectors.
  2. There are thousands of casual workers in the service sector in urban areas who search for daily employment. They are employed as painters, plumbers, repair persons and others doing odd jobs. Many of them don’t find work everyday. 
  3. We also see other people of the service sector on the streets pushing a cart or selling something where they may spend the whole day but earn very little. They are doing this work because they do not have better opportunities.

 

Q14 How is the tertiary sector different from other sectors?

Ans 

  1. In the primary sector, most of the activities are undertaken by exploiting our natural resources.
  2. The secondary sector does the processing of the raw material produced by primary sectors in manufacturing industries. 
  3. Tertiary sector neither produces goods nor transforms the shape of natural resources, but the activities undertaken by this sector support both primary and secondary sectors. 

 

Q15 What development has taken place in developed countries for each sector?

Ans 

  1. In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries. 
  2. The service sector has become the most important in terms of total production. 
  3. Most of the working people are also employed in the service sector. This is the general pattern observed in the developed countries.

 

Q16 What is skill development? How does it help in creating employment?

Ans 

  1. Skill development is the development of a particular skill with proper professional training. A trained person can get employment more easily than non skilled labour.
  2. Suppose the government opens new schools to educate people, the teachers will be required to run the school. A study conducted by the planning commission estimates that nearly 20 lakh jobs can be created in the education sector alone.
  3. Similarly, if we have to improve the health situation, we need many more doctors, nurses, health workers, etc. to work and various parts of our country.

 

Q17 How do we count the various goods and services and know the total production in each sector?

Ans 

(i) Economists suggest that the values of goods and services should be used rather than adding up the actual numbers. The value of goods and services in the three sectors are calculated and then added up. 

(ii) Not every good (or service)that is produced and sold, needs to be counted. It makes sense only to include final goods and services.

For example: A farmer sells wheat to a flour mill for 8 per kg. The mill grinds the wheat and sells the flour to a biscuit company for 10 per kg. The biscuit company uses flour, sugar and oil to make the packets of biscuits. It sells biscuits in the market to the consumer for 15 per packet. Now, biscuits are the final goods, i.e., goods that reach the consumer.

(iii) Intermediate goods are used up in producing final goods and services. The value of final goods already includes the value of all the intermediate goods that are used in making the final goods.

So, 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 production in three sectors gives us the ‘Gross Domestic Product or GDP.

 

Q18 What is the GDP of a country? Who has undertaken this task of measuring GDP in India? 

Ans 

  1. 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 production in the three sectors gives what is called the Gross Domestic Product or GDP of a country.
  2. In India, the mammoth task of measuring GDP is undertaken by the central government ministry. 
  3. This ministry, with the help of various government departments of all the Indian States and Union Territories, collects information related to total volume of goods and services and their prices and then estimates the GDP.

 

Q19 How can employment opportunities be generated in the tourism and information technology sectors?

Ans 

(i) The government must promote business as tourism helps a lot of Indian states and their artisans to earn recognition and income.

(ii) Tourist places, hotels, roads, etc. infrastructure should be prepared for attracting more 

(iii) Government should frame policies for providing job opportunities in IT Sector like BPOs.

(iv) Tourism and IT Sector at present also is booming in India which are providing more job opportunities to younger generation, artists, etc.

 

4 MARK QUESTIONS

Q1 Read the text given below and answer the following questions: (SAMPLE PAPER 2020-21)

Manufacturing industries not only help in modernising agriculture, which forms the backbone of our economy, they also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors. Industrial development is a precondition for eradication of unemployment and poverty from our country. This was the main philosophy behind public sector industries and joint sector ventures in India. It was also aimed at bringing down regional disparities by establishing industries in tribal and backward areas. Export of manufactured goods expands trade and commerce, and brings in much needed foreign exchange. Countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous. India’s prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible. Agriculture and industry are not exclusive of each other. They move hand in hand. For instance, the agro-industries in India have given a major boost to agriculture by raising its productivity.

Answer the following MCQs by choosing the most appropriate option:

1. Manufacturing industries fall in _________ and agriculture in ___________ .

  1. Primary, Secondary Sector 
  2. Secondary, Tertiary Sector 
  3. Primary, Tertiary Sector 
  4. Secondary, Primary Sector 

Ans 4. Secondary, Primary Sector

 

2. Manufacturing provides job opportunities to reduce dependence on agriculture. Identify which sector the following jobs belong to

Jobs created or promoted by manufacturing industries  Sector
a. Garment production  1.Primary
b. Research & Development  2.Tertiary
c. Banking  3.Secondary
d. Mining  4.Quaternary

Choose the correct option – 

  1. a-1, b-2, c-3, d-4 
  2. a-3, b-4, c-2, d-1
  3. a-2, b-3, c-1, d-2 
  4. a-4, b-1, c-4, d-3 

Ans 2. a-3, b-4, c-2, d-1

3. Which of the following options does not help in modernising agriculture?

  1. Manufacturing farm equipment 
  2. Providing unskilled labour force
  3. Supplying fertilizers and pesticides 
  4. Producing tube well pumps and sprinklers

Ans 2. Providing unskilled labour force

4. In order to attract foreign manufacturing firms, a country needs to develop 

  1. Agrarian facilities 
  2. Cultivable lands 
  3. Media facilities 
  4. Infrastructure facilities

Ans D. Infrastructure facilities

 

Q2 Read the text given below and answer the following questions:

After primary and secondary, there is a third category of activities that falls under the tertiary sector and it is different from the above two. These are 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. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. At times, it may be necessary to store these in go down. We also may need to talk to others over the telephone or send letters (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communication, banking, trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

 

1. What do you understand about the tertiary sector?

Ans The activities that help in the development of primary and secondary sectors are called tertiary activities and fall under the tertiary sector. These activities, by themselves, do not produce a good but they are a support for the production process.

2. Why is the tertiary sector also known as the service sector?

Ans Since tertiary activities generate services rather than goods, it is also known as the service sector.

3. What is the significance of the tertiary sector?

Ans Tertiary sector provides services and goods produced in the primary and secondary sector would not reach people if the tertiary sector is missing in action.

4. State a few occupations of the tertiary sector.

Ans Teachers, doctors, barbers, lawyers, accountants, etc

 

Q3 Read the text given below and answer the following questions:

Let us read about two contrasting cases of employment through Kanta and Kamal. Kanta works in an office. She attends her office from 9:30 a.m. to 5:30 p.m. She gets her salary regularly at the end of every month. In addition to the salary, she also gets provident fund as per the rules laid down by the government. She also gets medical and other allowances. Kanta does not go to office on Sundays. This is a paid holiday. When she joined work, she was given an appointment letter stating all the terms and conditions of work. Kamal is Kanta’s neighbour and on the other hand he is a daily wage labourer in a nearby grocery shop. He goes to the shop at 7:30 in the morning and works till 8:00 p.m. in the evening. He gets no other allowances apart from his wages. He is not paid for the days he does not work. He has therefore no leaves or paid holidays. No was he given any formal letter saying that he has been employed in the shop. He can be asked to leave anytime by his employer.

 

1. What do you understand by the organised sector?

Ans Organised sectors cover those enterprises or places of work where the terms of employment are regular and therefore people are assured of work. 

2. What do you understand by the unorganised sector?

Ans The unorganised sector is characterised by small and scattered units which are largely outside the control of the government

3. Do you agree that agriculture is an unorganised sector activity? Why?

Ans Yes, agriculture is an unorganised sector activity because it is largely outside the control of the government

4. State a few occupations of the organised sector.

 

Ans Teachers of govt schools, policemen, judges, etc

 

5 MARK QUESTIONS

 

Q1 Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer. (NCERT QUESTION)

Ans 1. Jobs are poorly paid. The workers in the unorganised sector are either illiterate, ignorant or unorganised.

  1. Apart from the daily wages they do not get other benefits or allowances.
  2. There are no fixed working hours. The workers mainly work from 10 to 12 hours without being paid overtime.
  3. The rules and regulations applied by the government to protect the labourers are not followed in their case.
  4. As they are poor, they are mainly under heavy debt. Thus, it becomes easier for others to exploit them for lower wages.

 

Q2 Explain how the public sector contributes to the economic development of a nation. (NCERT QUESTION)

Ans In the following ways public sector contributes to the economic development of a nation:

  1. It generates financial resources for development.
  2. It promotes rapid economic development through creation and expansion of infrastructure and creates employment opportunities.
  3. It ensures equality of income, wealth and thus, a balanced regional development.
  4. It encourages development of small, medium and cottage industries and ensures easy availability of goods at moderate rates.
  5. Contributes to community development, i.e. to the Human Development Index (HDI) via health and educational services.

 

Q3 What are the various ways to provide employment opportunities in rural areas? 

Ans (i) The government can spend some money or banks can provide a loan, to construct wells for irrigation.

(ii) Dams can be constructed along with canals, which will lead to a lot of employment generation. 

(iii) Government can invest some money on the construction of roads for running mini trucks and providing job opportunities in transportation.

(iv) Local banks can provide credit at reasonable interest to the farmers for their farming to improve. 

(v) Identify, promote and locate industries and services in semi-rural areas where a large number of people may be employed.

(vi) Setting up of dal mills, opening cold storages, honey collection centres and industries to process vegetables and other agricultural products, which can be sold in outside markets. 

(vii) More and more schools should be opened which would create about 20 lakhs jobs in the education sector alone.

(viii) To improve the health situation, we need more doctors, nurses, health workers, etc. to work in the rural areas.

(ix) If tourism as a sector is improved every year, we can give additional employment to more than 35 lakh people.

 

Q4 How can workers be protected in the unorganised sector?

OR

Why is agriculture an activity of the unorganised sector in India? Explain. 

Ans There is a need for protection and support of the workers in the unorganised sector.

(i) In rural areas: 

(a) In the rural areas, the unorganised sector mostly comprises landless agricultural labourers, small and marginal farmers, sharecroppers and artisans.

(b) Nearly 80 per cent of the rural households in India are in the small and marginal farmer category. 

(c) These farmers need to be supported through timely provision of seeds, agricultural inputs, credits, storage facilities and marketing outlets, etc. 

(ii) In urban areas:

(a) In the urban areas, the unorganised sector comprises mainly of the workers in small scale industries, casual workers in construction, trade and transport, etc., and those who work as street vendors, head load porters and rag pickers, etc.

(b) Small-scale industries also need government’s support for procuring and processing raw material and for marketing of output.

(c) The casual workers are required to be protected in their jobs and wages.

(iii) SC and STs:

(a) Majority of workers from the scheduled castes, tribes and backward communities find themselves in the unorganised sector. 

(b) Besides getting the irregular and low-paid work, these workers also face social discrimination. 

(c) Protection and support to the unorganised sector workers is thus, necessary for both economic and social development.

 

Q5 Classify industries on the basis of their economic activities with examples.

Ans 

Primary sector Secondary sector Tertiary sector
(a) There are many activities that are undertaken by directly using natural resources. (a) It covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. (a) These are activities that help in the development of the primary and secondary sectors. 
(b) They are called primary since it forms the base for all other products that are subsequently produced. (b) The product is not produced by nature but has to be made and therefore, some process of manufacturing is essential. (b) These activities, by themselves, do not produce a good but they are an aid or a support for the production process.
(c) Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. (c) Since this sector gradually becomes associated with the different kinds of industries that come up, it is also called an industrial sector.  (c) Since these activities generate services rather than goods, the tertiary sector is also called the service sector.
(d) For example: In activities like dairy, we are dependent on the biological process of the animals and availability of fodder, etc. (d) For example: Using sugarcane as a raw material, we make sugar or gur. (d) For example: Goods that are produced in the primary or secondary sector need to be transported by trucks or trains and then sold in wholesale and retail shops.

 

Q6 Which local industries in semi-rural areas can provide job opportunities for the unemployed?

Ans (i) Setting up dal mills to procure and process pulses and then sell them in the cities. 

(ii) Opening a cold storage could give an opportunity for farmers to store their products like potatoes and onions and sell them when the price is good.

(iii) In villages near forest areas we can start honey collection centres, where farmers can come and sell wild pure honey.

(iv) It is also possible to set up industries that process vegetables and agricultural produce like potato, sweet potato, rice, wheat, tomato, fruits, which can be sold in outside markets.

(v) This will provide employment in industries located in semi-rural areas and not necessarily in large urban centres. 

 

Q7 What are the advantages of working in the organised sectors?

Ans Advantages of working in the organised sectors are:

(i) Workers of the organised sector get regular and assured employment. 

(ii) They are registered by the government and have to follow its rules and regulations which are given in various laws such as Factories Act, Minimum Wages Act, Payment of Gratuity Act. 

(iii) Workers in organised sectors enjoy job security and are expected to work only for a fixed number of hours.

(iv) They also get seveal other benefits like paid leave, payment during holidays, provident fund, gratuity, etc. 

(v) They are also supposed to get medical benefits, pension, etc.

(vi) There is a provision of overtime, in case the workers do their duties after fixed working hours.

 

Q8 Why a large number of workers are forced to enter the unorganised sector?

Ans 1. The organised sector offers jobs that are the most sought after. But the employment opportunities in the organised sector have been expanding very slowly.

  1. It is also common to find many organised sector enterprises in the unorganised sector jobs, which pay a very low salary.
  2. As a result, a large number of workers are forced to enter the unorganised sector jobs, which pay a very low salary.
  3. They are often exploited and not paid a fair wage.
  4. Their earnings are low and not regular. These jobs are not secure and have no other benefits.

 

Q9 “There has been a big change in the three sectors of economic activities in India but similar shift has not taken place in the share of employment”. Explain the above statement on the basis of facts.

Ans (i) There has been a big change in the three sectors of the Indian economy. 

(ii) In the primary sector, modern technology has been introduced in agriculture. With the arrival of the green revolution, increased irrigation methods, there are noticeable changes in this sector.

(iii) Industrial production has also increased several times therefore providing more employment Join opportunities to the unemployed and underemployed in this sector.

(iv) Similarly in the tertiary sector, there are more people coming for employment. New development of primary and secondary sectors leads to the development of services like e poi transport, trade, storage, etc. 

(v) There are lots of casual workers in the service sector in urban areas who search for daily employment. In the rural areas too, a lot of casual workers sometimes intermittently do not get jobs. Many of them are disguisedly unemployed. So besides change unemployment still exists in India.

 

Q10 How far is it correct to say that in the recent past, India has experienced some significant changes in the contribution of the GDP service sector? Explain.

Ans 1. Not all service sectors are growing equally well. Service sector in India employs many different kinds of people.

  1. At one end, there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.
  2. But in terms of GDP, the service sector emerged as the largest producing sector in India replacing the primary sector.
  3. In 1972, the share of the tertiary sector in GDP was almost 35% which increased to more than 58% in 2011.
  4. As the income of people rises, they begin to demand many more services like eating out, tourism, shopping malls, etc.
  5. Particularly this area, the post decade IT Sector or BPO’s provided jobs to many urban educated unemployed youth too.

 

Q11 Give reasons for the growth of the service sector in India.

OR

How is the tertiary sector gaining importance in India?

Ans (i) In any country, several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc., are required. These can be considered as basic services.

(ii) The development of agriculture and industry leads to the development of service such as transport, trade, storage, etc. Greater the development of the primary and secondary sector, more would be the demand for such services.

(iii) As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training institutes, etc. These changes can be seen in big cities.

(iv) Over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. 

(v) Therefore, production of these services has been rising rapidly.

 

Q12 How would income and employment increase if farmers were provided with irrigation and marketing facilities?

Ans (i) The government can spend some money or banks can provide loans to construct wells to irrigate the land of poor farmers.

(ii) Government can develop tourism or regional craft industries. It would encourage the small farmers to get additional income.

(iii) Suppose a new dam is constructed and canals are dug to irrigate many farms, this could lead to a lot of employment generation within the agricultural sector itself reducing the problem of underemployment.

(iv) Poor farmers need seeds, fertilizers, and agricultural equipment. If the local banks give them credit at a reasonable rate of interest, they will be able to buy them in time and cultivate their land.

(v) Another way, by which we can tackle this problem, is to identify, promote and locate industries and services in semi-rural areas where a large number of people may be employed.

 

Q13 ‘Tertiary sector is playing a significant role in the development of the Indian Economy’. Justify the statement. (SAMPLE PAPER 2020-21) and (SAMPLE PAPER 2018-19)

Ans (i) Basic services: Services such as hospitals, educational institutions, post and telegraph services, transport, banks, insurance companies, are in this group. 

(ii) Development of primary and secondary sector: The development of agriculture and industry leads to the development of services such as transport, trade and storage. 

(iii) Rise in income levels: As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools and professional training centres. 

(iv) Rise in information technology: Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential. 

(v) Globalization: Due to globalization, people have become aware of new services and activities, and communication because of which the tertiary sector has gained importance. 

 

Q14 ‘Public sector contributes to the economic development of India.’ Justify the statement. (SAMPLE PAPER 2020-21)

Ans (i) It promotes rapid economic development through creation and expansion of infrastructure. 

(ii) It creates employment opportunities. 

(iii) It generates financial resources for development. 

(iv) It is ensuring equality of income, wealth and thus, a balanced regional development. 

(v) It encourages development of small, medium and cottage industries. 

(vi) It ensures easy availability of goods at moderate rates. 

(vii)Contributes to community development, Human Development Index i.e. health and educational services

 

Q15 Rohan works in a bank as a clerk while Sumit works on a construction site as a labourer. Find out the difference in their conditions of work and judge the benefits and drawbacks of working in the respective sectors. (SAMPLE PAPER 2017-18)

Ans Rohan works in an organised sector; he will enjoy security of employment. He will be expected to work only a fixed number of hours. If he works more, he will have to be paid overtime by the employer. He will also get several other benefits from the employers like getting paid leave, payment during holidays, provident fund, gratuity etc. He is supposed to get medical benefits and, under the laws, the bank manager has to ensure facilities like drinking water and a safe working environment. When he will retire, he will get pension as well. 

In contrast, Sumit works in the unorganised sector which is characterised by small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. 

So, his job will be low-paid and often not regular. There will be no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. He can be asked to leave without any reason when there is less work, such as, during some seasons. A lot also depends on the whims of his employer.

 

Q16 Reema works as a Head Technician in Mehta Textiles Private Ltd. whereas Shirin works as a Sales Executive in Kashvi Fashion Showroom. Identify the sectors of economy in which Reema and Shirin are working. Evaluate the role of each of these sectors in the Indian economy. (SAMPLE PAPER 2017-18)

Ans Reema works in Secondary or Manufacturing Sector where as Shirin works in the Tertiary or Service Sector 

Role of Secondary/Manufacturing Sector – 

  1. This sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity, hence it is also called the industrial sector. 
  2. The product in this sector has to be made and therefore some process of manufacturing is essential, may be in a factory, a workshop or at home. For example, using cotton fiber from the plant, spinning yarn and weaving cloth etc. 
  3. This sector provides large scale employment and helps in earning huge revenue. It helps in the development of a nation. 

 

Role of Tertiary/Service Sector – 

  1. These are 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. For example, goods need to be transported by trucks or trains and then sold in wholesale and retail shops; they have to be stored in godowns. 
  2. So, transport, storage, communication, banking, trade are some examples of tertiary activities. Since these activities generate services, the tertiary sector is also called the service sector. It also includes services of teachers, doctors, and those who provide personal services such as washer men, barbers, cobblers, lawyers, and people to do administrative and accounting works. In recent times, certain new services based on information technology such as internet cafes, ATM booths, call centres, software companies etc. have become important. 
  3. Service sector contributes the most to the national economy these days and is further growing. 

 

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