Class 10 Economics Chapter 2 Extra Questions and Answers Sectors of Indian Economy

Class 10 Economics Chapter 2 Extra Questions and Answers Sectors of Indian Economy

QUESTIONS OF 1 MARK

Answers should not exceed 30 words.

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

1. Primary or agriculture and related sector.
2. Secondary or industrial sector.
3. Tertiary or services sector.

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

Question 3.
Which occupation belongs to the primary sector ? Mention any one. [CBSE 2016-17]
Answer:
Dairy, fishing and forestry.

Question 4.
In which sector all natural products are changed into forms through ways of manufacturing ? [CBSE 2016-17]
Answer:
Secondary sector.

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

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

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

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

• Primary sector — Dairy, fishing.
• Secondary sector – Sugar factory.
• Tertiary sector – Washerman, ATM booth.

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

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

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

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

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

1. 1973 – Primary Sector.
2. 2003 – Tertiary Sector.

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

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

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

Question 17.
What is disguised unemployment ?
Answer:
This kind of under-employment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence it is called disguised unemployment.

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

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

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

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

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

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

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

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

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

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

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

1. In terms of ownership, sectors can be divided into public and private sectors.
2. Public sector – Railways.
3. Private sector- Tata Iron and Steel Company Ltd.

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

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

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

QUESTIONS OF 3/5 MARKS

Answers should be in about 80/100 words.

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

• Primary sector :
  • When we produce goods by exploiting natural resources – mineral, ore, milk etc., is an activity of primary sector,
  • It is so because it forms the base for all other products that we subsequently make,
  • This sector is called agriculture and related sector because most of the natural products are from agriculture, dairy, fishing, forestry.
• Secondary sector :
  • This sector covers activities in which natural products are changed into other forms by way of manufacturing, for example cotton into cloth.
  • This process can be done in a factory, a workshop or at home,
  • Since this sector is mostly associated with different kinds of industries, it is also called as industrial sector.
• Tertiary sector :
  • 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, manufactured goods need to be transported by trucks or trains and then sold in the market. Sometimes goods are stored in godowns. We need communication system to interact with each other,
  • Transport, storage, communication, banking, trade are important tertiary activities,
  • Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

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

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

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

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

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

Intermediate goods	Final goods
(1) Intermediate goods are used up in producing final goods and services. The value of final goods includes the value of all the intermediate goods that are used in making the final goods. For example wheat and wheat flour used in making of biscuit in a factory are intermediate goods	(1) These goods are used for final consumption. For example biscuits are final goods. These are sold in the market for consumption. The value of the intermediate goods is already included in it.
(2) Intermediate goods are not included in GDP to avoid the problem of double counting. For example if the value of wheat and wheat flour is counted then we would be counting the value twice or thrice.	(2) The value of final goods and services are included to know the GDP of a country. A sum of production of three sectors gives the GDP.

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

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

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

1. Initial stages of primary sector :
   1. The agricultural sector was the most  important sector of economic activity. Most of the people were engaged in farming and producing grains for their own consumption.
   2. However with the passage of time agricultural sector produced more food. This gave rise to many activities such as transporter, administrator and army. Buying and selling increased.
   3. But most of the goods produced were natural products.
   4. Most of the people were still employed in the primary sector.
2. Secondary sector :
   1. With the introduction of new methods of manufacturing, factories came up.
   2. More goods were produced in factories.
   3. This was the beginning of secondary sector. It gradually became important in total production and employment.
3. Tertiary sector : In the past 100 years there was shift from secondary to tertiary sector due to the factors as mentioned below:
   • Need for hospitals/schools/police stations etc.
   • Development of agriculture and industry and need for services such as transport, torage etc.
   • Rise in the income level and more demand for tourism, shopping etc.
   • Coming of Information Technology. ‘
     Thus there was change from one sector to another in due course of time.

Question 7.
Study the graph given below and answer the following questions :
GDP by Primary,Secondary ,Tertiary Sector.

1. Which was the largest producing sector in 1973 ?
2. Which was the largest producing sector in 2003 ?
3. Which sector has grown the most over thirty years ?
4. What was the GDP of India in 2003 ?
5. What does the comparison between 1973 and 2003 show ?
6. What conclusions can be drawn from the comparison ?

Answer:

1. Primary sector
2. Tertiary sector
3. Tertiary sector
4. 210000 crore
   • The comparison between 1973 and 2003, show that over thirty years between 1973 and 2003, production in all the three sectors has increased.
   • The production has increased the most in the tertiary sector.
   • The tertiary sector has emerged as the largest producing sector in India replacing the primary sector.
5. The conclusions that can be drawn are as mentioned below
   1. Tertiary sector has become the largest producing sector.
   2. The primary sector i.e., agricultural sector’s share in the GDP has come down during
      these thirty years.
   3. The share of the tertiary sector in the GDP has increased and it is now maximum in 2003.

Question 8.
Study the graph given below and answer the following questions :

1. Which was the largest producing sector in 1973 ?
2. Which was the largest producing sector in 2003 ?
3. What is the contribution of secondary sector (%) to total GDP in 2003 ?
4. What is the approximate share of tertiary sector in GDP (%) in 1973 ?

Answer:

1. Primary sector.
2. Tertiary sector.
3. 24% approximately.
4. 35% approximately.

Question 9.
Why is the tertiary sector growing so rapidly in India ? Explain by giving four reasons
Or
Which sector has emerged as the largest producing sector in the Indian economy in the last decade ? Give reasons.
Or
Give the meaning of tertiary sector. State any three factors that contributed to the growth of this sector.
Answer:
(1) Tertiary sector relates to the activities that help in the development of the primary and secondary sectors. These activities by themselves do not produce a good but they are an aid or a support for the production process.
(2) The causes for tertiary sector becoming important sector in India by replacing the primary sector are as follows:                                                                             ,

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

Question 10.
Service sector in India employs different kinds of people. Explain with example.
 Or
Explain with suitable examples as to which part of the service sector is not growing in importance.
Or
Mention three types of services included in service sector. Give one example of each type.
Answer:
See Textbook Questions 12 and 13.

Question 11.
Suggest any three ways to create more employment in rural sector
Or
Explain the ways to create more employment in agricultural sector.
Or
Explain measures that can be adopted to remove disguised unemployment in the agriculture sector.
Answer:
The following steps can be taken to remove disguised unemployment in the agricul­ture sector :

• Loans should be provided to small farmers by the government or banks to have more irrigation facilities like wells and tube-wells in order to enable them to grow second crop.
• New dams and canals should be constructed. This will lead to more employment in the agricultural sector.
• Transportation and storage facilities must be improved to provide productive employ­ment to not only the farmers but also others in services like transport and trade.
• Banks should provide agricultural credit to the farmers to improve farming.
• Industries such as dal mill, cold storage, hoi\ey collection centres, processing of vegetables should be set up in rural or semi-rural areas. Such industries will get raw materials from the rural areas and will create more employment opportunities for the rural people.
• Schools should be opened in rural areas. This will provide jobs to about 20 lakh people in the education sector.
• Health services should be improved in rural areas by opening dispensaries and hospitals. This will create jobs for doctors, nurses and other staff.
• Tourism, regional craft industry or Information Technology should be encouraged by the government to create more employment opportunities in the rural areas.
• As a short term measure, the government has implemented the Right to Work in 200 districts of India. It is called National Rural Employment Guarantee Act (NREGA) 2005.
  Also see Textbook Question 17.

Question 12.
Suggest any three ways to create more employment avenues in urban sector.
Answer:
The following ways are suggested to create more employment avenues in urban areas :

• Different states should encourage regional craft industry.
• Tourism industry should be promoted. Different sites of historical or cultural importance should be maintained in a better way to attract tourists. According to a study by the Planning Commission if the tourism sector is improved, every year employment can be given to more than 35 lakh people.
• The government should make changes in the policies to provide basic facilities, develop infrastructure and extend loan and technological assistance. According to an estimate of the Planning Commission, nearly 20 lakh jobs can be created in education sector alone if we provide buildings, teachers and the other staff for the schools for about 200 million children in the school-going age-group.
  Also see Textbook Question 17.

Question 13.
Describe five provisions of NREGA 2005.  [CBSE 2016-17]
Or
What are the objectives of NREGA 2005 ?   [CBSE 2016-17]
Answer:
See Textbook Question 17.

Question 14.
Mention any one feature of unorganised sector. [CBSE 2016-17]
Or
Why is protection and support to the unorganised sector necessary ?   [CBSE 2016-17]     
Or
Define the term unorganised sector. Mention any three disadvantages of working in this sector. 
[CBSE 2016-17]
Answer:
See Textbook Questions 14, 15 and 16.

Question 15.
What steps should be taken by the government to protect workers in the unorganised sector ?
Answer:
Following steps should be taken to provide protection and support to them :

1. Small farmers who comprise 80% of the rural’households, should be supported in procuring seeds, agricultural inputs, credit, storage facilities and marketing outlets.
2. In urban areas, government should help small scale industry in procuring raw material and marketing of goods.
3. The interests of the casual workers in rural as well as urban areas must be protected by law.
4. The government should take steps to ensure equal treatment for all particularly low castes.
   Minimum Wages Act should be enforced strictly.
5. The government should take steps to ensure regulation of working hours and grant of medical facilities etc.
6. The government should take strict action against those employers who discriminate on account of caste, creed and gender.

Question 16.
Differentiate between public and private sector.
Or
State features of public sector.[CBSE 2016-17]
Answer:
Differences between public sector and private sector are as mentioned below :

Public sector	Private sector
(1) Most of the assets are owned by the government e.g., Railways and Post and Telegraph departments.	Assets are owned by the Private individuals e.g., Reliance Industries, Tata Iron and Steel Company.
(2) All the services are provided by the government	Delivery of services is in the hands of private individuals or companies.
(3) Activities of public sectors are guided by the interest of the nation as a whole. Examples are construction of roads, bridges, harbours, and generating electricity.	These activities are guided by the motive to earn profits. To get such services, we pay money to these individuals or companies
(4) In public sector, employees get security of service and other benefits such as pension, gratuity, leave, medical facilities. There is disciplined and regular work	In private sector, jobs of the employees are less secured. They do not get other benefits such as pension and regular work.

 Question 17.
Why do the modern governments spend a lot of money on different activities without earning profit ?
Answer:
The reasons are as given below :

• Welfare of the people : The modem state is a welfare state that looks after the interests of its citizens. People pay different types of taxes and expect the government to follow policies for the welfare of the people. So, generally those activities which do not generate profit and are not taken up by the private sector, are taken up by the government or the public sector. Thus, services like Railways or Posts and Telegraphs are provided by the government.
• Large expenditure : Some activities like construction of roads etc. need large sum of expenditure which cannot be borne by the private sector. So, the government takes up such activities in the interest of the people in a democracy.
• Some activities that need support of the government : There are some activities that need support of the government in the form of subsidy such as provision of foodgrains for the poor through ration shops. The government buys wheat, paddy etc. at a higher price but sells at a lower price at ‘ration shops’. Such activities cannot be taken up by the private sector.
• Duty of the government : It is the duty of the government to raise the standard of living of the people. It should make arrangements for quality education and health services in order to take care of the poorest of the poor and most ignored regions of the country. Thus, the government takes up various activities and spends a lot of money on them.

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