NCERT Solutions for Class 10 Social Science (Economics) Chapter 2 Sectors of the Indian Economy

NCERT
SOLUTIONS
CLASS - 10th

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Class : 10th
Subject : Social-Science-Economics
Chapter : 2
Chapter Name : Sectors Of The Indian Economy

Q1 Complete the above table to show how sectors are dependent on each other.

Answer.

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Q2 Explain the difference between primary, secondary and tertiary sectors using examples other
than those mentioned in the text.

Answer. (a) Primary Sector It is connected with extraction and production of natural resources
e.g.,

(b) Secondary Sector It is concerned with the processing of materials which have already been
extracted at the primary stage e.g., making jewellery from gold
(c) Tertiary Sector It is concerned with providing support services to primary and secondary sector
e.g„ insurance.

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Q3 Classify the following list of occupations under primary, secondary and tertiary sectors:
Tailor
Basket weaver
Flower cultivator
Milk vendor
Fishermen
Priest
Courier
Workers in match factory
Moneylender
Gardener
Potter
Bee-keeper
Astronaut
Call centre employee

Answer.

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Q4 Students in a school are often classi ed into primary and secondary or junior and senior. What
is the criterion that is used? Do you think this is a useful classi cation? Discuss.

Answer. Students are often classi ed into primary and secondary or junior and senior. They are
classi ed on the basis of the class in which they study. Yes, I think this is a useful classi cation
because we cannot classify all of them on the basis of age.

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Q1 What does the history of developed countries indicate about the shifts that have taken place
between sectors?

Answer. The history of developed countries indicates that there has been a major shift from the
secondary sector, i.e., manufacturing and industries, to the tertiary sector, i.e., services. The
service sector has become the most important sector of the economy and most of the employed
people in the developed countries are employed in this sector.

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Q2 Correct and arrange the important aspects for calculating GDP from this Jumble. To count
goods and services we add the numbers that are produced. We count all those that were produced
in the last ve years. Since we shouldn’t leave out anything we add up all these goods and services.

Answer. We count the value of all those nal goods and services that were produced in the
particular year.

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Q3 Discuss with your teacher how you could calculate the total value of a good or service by using
the method of value added at each stage.

Answer. DIY

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Q1 Which was the largest producing sector in 1973-74?

Answer. Primary sector.

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Q2 Which is the largest producing sector in 2013-14?

Answer. Tertiary sector.

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Q3 Can you say which sector has grown the most over forty years?

Answer. The tertiary sector has grown the most aver thirty years.

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Q4 What was the GDP of India in 2013-14?

Answer. The total GDP was 2, 10,000 crore rupees.

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Q1 Complete the table using the data given in Graphs 2 and 3 and answer the question that
follows. Ignore if data are not available for some years.

What are the changes that you observe in the primary sector over a span of forty years?

Answer. Graph 2 Share of Sectors in GDP (%) Share of Primary Sector in GDP and Employment

While the share in GOP has reduced drastically from 45% to 25%, the share of employment has
reduced by a much lesser amount, from 74% to 61%.

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Q2 Choose the correct answer: Underemployment occurs when people
(i) do not want to work
(ii) are working in a lazy manner
(iii) are working less than what they are capable of doing

(iv) are not paid for their work

Answer. (iii) are working less than what they are capable of doing.

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Q3 Compare and contrast the changes in India with the pattern that was observed for developed
countries. What kind of changes between sectors were desired but did not happen in India?

Answer. In India, both the secondary and tertiary sectors are increasing at the expense of the
primary sector, but the increase in tertiary sector is more For India to become a strong
industrialized nation, the secondary sector should have increased more, but this is not happening
due to variety of reasons.

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Q4 Why should we be worried about underemployment?

Answer. We should worry about underemployment as due to this, the earning capacity of a person
is reduced, resulting in a poor standard of Ultimately this can also lead to poverty.

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Q1 Why do you think MGNREGA 2005 is referred to as ‘ Right to work’ ?

Answer. In NREGA, if the government fails in its duty to provide employment it will give
unemployment allowances to the people so it is, in effect giving the persons the right to work

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Q2 Imagine that you are the village head. In that capacity suggest some activities that you think
should be taken up under this Act that would also increase the income of people? Discuss.

Answer. Many activities under MGNREGA can be taken up including
(i) Water conservation and water harvesting
(ii) Drought proo ng by digging tube wells.
(iii) Constructing irrigation canals far crops.
(iv) Making provision of irrigation facility on the lands of disadvantaged sections SCS and STs and
other.
(v) Renovation of traditional water bodies (e.g„ tanks)
(vi) Land development for agriculture, horticulture, etc.
(vii) Constructing check dams for ood control and protection
(viii) Construction of roads for improving rural connectivity to provide all-weather access to the
villages.

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Q3 How would income and employment increase if farmers were provided with irrigation
and marketing facilities?

Answer. (i) Farmers require transporting their products to a nearby town for sales. 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.
(ii) Suppose a new dam is constructed and canals are dug to irrigate the agricultural I and, it could
lead to a lot of employment generation within the agricultural sector itself and in reducing the
problem of underemployment, besides increasing the crop yield

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Q4 In what ways can employment be increased in urban areas?

Answer. To increase employment in urban areas, we will need to carry out the following tasks
(i) Invest in basic industries which provide mass employment.
(ii) Improve local and inter-city transportation so that more people can be employed to work in the
transportation industry.
(iii) Increasing vocational education courses, so that people educated for a vacation get jobs easily.

(iv) Give incentives for industry in urban areas to increase their capacity.

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Q1 Look at the following examples. Which of these are unorganised sector activities?
(i) A teacher taking classes in a school
(ii) A headload worker carrying a bag of cement on his back in a market
(iii) A farmer irrigating her eld
(iv) A doctor in a hospital treating a patient
(v) A daily wage labourer working under a contractor
(vi) A factory worker going to work in a big factory
(vii) A handloom weaver working in her house

Answer. (ii) A head load worker carrying a bag of cement on his back in a market under a
contractor.
(iii) A farmer irrigating her eld
(v) A daily wage labourer working
(vii) A handloom weaver working in her house.

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Q2 Talk to someone who has a regular job in the organised sector and another who works in the
unorganised sector. Compare and contrast their working conditions in all aspects.

Answer. Comparison of Working Conditions in the Organized and unorganized Sectors.

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Q3 How would you distinguish between organised and unorganised sectors? Explain in your own
words.

Answer. Distinctions between organized sector and unorganized sector are as follows

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Q4 The table below shows the estimated number of workers in India in the organised and
unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions
that follow.

What is the percentage of people in the unorganised sector in agriculture?
Do you agree that agriculture is an unorganised sector activity? Why?
If we look at the country as a whole, we nd that ———% of the workers in India are in the
unorganised sector. Organised sector employment is available to only about ———% of the
workers in India.

Answer. (i) It is not possible to answer this question, as the proportion of agriculture sector people
out of the total number of people in unorganized sector is not given.

(ii) Yes, agriculture in India is an activity of the unorganized sector, because
(a) Most of the workers working in agriculture are not paid on regular basis.
(b) Agriculture sector faces the problem of underemployment.
(c) They are not given appointment letters, there is no security of job and there is no system of
leaves or weekly offs.
(d) Most of the farmers are dependent on moneylenders and relatives for their loan requirements.

(iii) 93%, 7%

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Q1 Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector _________ increased to the same extent as production. (has /
has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary / agricultural)
(iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large /
small)
(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent /
interdependent)

Answer. (i) Employment in the service sector has not increased to the same extent as production.
(ii) Workers in the tertiary sector do not produce goods.

(iii) Most of the workers in the organised sector enjoy job security.
(iv) A large proportion of labourers in India are working in the unorganised sector.
(v) Cotton is a natural product and cloth is a manufactured product.
(vi) The activities in primary, secondary and tertiary sectors are interdependent .

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Q2 Choose the most appropriate answer.

(a) The sectors are classi ed into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in ______________
sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of _____________ produced during a particular year.
(i) all goods and services
(ii) all nal goods and services
(iii) all intermediate goods and services
(iv) all intermediate and nal goods and services

(d) In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 percent

Answer. (a) (iii)
(b) (i)
(c) (ii)
(d) (iii)

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Q3 Match the following:

Answer.

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Q4 Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, SAHARA Airlines, All India Radio

Answer. (i) Tourist guide
He is appointed by the government, while dhobi, tailor and potter belong to the private sector.
(ii) Vegetable vendor
His is the only profession that does not require a formal education.
(iii) Cobbler
The rest are workers in the public sector, while his profession is part of the private sector.
(iv) SAHARA Airlines
It is a private enterprise, while the rest are government undertakings.

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Q5 A research scholar looked at the working people in the city of Surat and found the following.

Complete the table. What is the percentage of workers in the unorganised sector in this city?

Answer.
The percentage of workers in the unorganised sector in this city is 70%.

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Q6 Do you think the classi cation of economic activities into primary, secondary and tertiary is
useful? Explain how.

Answer. The classi cation of economic activities into primary, secondary and tertiary is useful on
account of the information it provides on how and where the people of a country are employed.
Also, this helps in ascertaining as to which sector of economic activity contributes more or less to
the country’s GDP and per capita income. If the tertiary sector is developing much faster than the
primary sector, then it implies that agriculture is depleting, and the government must take
measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or
regressive can only come if we know which sector it belongs to. Hence, it is necessary to classify
economic activities into these three basic sectors for smooth economic administration and
development.

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Q7 For each of the sectors that we came across in this chapter why should one focus on
employment and GDP? Could there be other issues which should be examined? Discuss.

Answer. For each of the sectors that we came across in this chapter, one should focus on
employment and GDP because these determine the size of a country’s economy. A focus on
employment and GDP helps determine two important things—per capita income and productivity.
Hence, in each of the three sectors, employment rate and status as well as its contribution to the
GDP help us understand how that particular sector is functioning and what needs to be done to
initiate further growth in it.

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Q8 Make a long list of all kinds of work that you nd adults around you doing for a living. In what
way can you classify them? Explain your choice.

Answer. DIY

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Q9 How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer. The tertiary sector is different from the other sectors because it does not manufacture or
produce anything. For this reason, it is also known as the service sector. It aids the primary and
secondary sectors in development. The tertiary sector involves services like transport, storage of
goods, communications, banking and administrative work.

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Q10 What do you understand by disguised unemployment? Explain with an example each from the
urban and rural areas.

Answer. Disguised unemployment is a form of underemployment where one has a job but the work
is divided. It is not apparent as compared to someone without a job who is clearly unemployed. In
rural areas, this can be seen in the farming community where all members of a family might be
working on a farm even though so many hands are not required. They do so because of lack of
another job. In urban areas, disguised unemployment can be seen in the service sector where
painters, plumbers, repair persons and those doing odd jobs have work but they may not nd daily
or regular employment.

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Q11 Distinguish between open unemployment and disguised unemployment.

Answer. Open unemployment is when a person has no job in hand and does not earn anything at

all. Disguised unemployment, on the other hand, is mostly found in the unorganised sector where
either work is not consistently available or too many people are employed for some work that does
not require so many hands. This is the essential difference between open unemployment and
disguised unemployment.

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Q12 “Tertiary sector is not playing any signi cant role in the development of Indian economy.” Do
you agree? Give reasons in support of your answer.

Answer. “Tertiary sector is not playing any signi cant role in the development of the Indian
economy”. This statement is not true. The tertiary sector has contributed vastly to the Indian
economy, especially in the last two decades. In the last decade, the eld of information technology
has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in
1973 to more than 50% in 2003.

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Q13 Service sector in India employs two different kinds of people. Who are these?

Answer. Service sector in India employs two different kinds of people. These are primary and
ancillary workers. Primary workers include those who directly provide services while ancillary
workers are composed of those who give services to the service providers. For example,
consultants make available their services to consultancy rms etc.

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Q14 Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in
support of your answer.

Answer. Workers are exploited in the unorganised sector. I agree with this view. The unorganised
sector does not offer any job security. Neither does it allow for scope of trade or workers’ unions.
Workers can be easily exploited in this scenario. They cannot afford to rebel against an employer’s
tyranny as the latter can re them at any time.

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Q15 How are the activities in the economy classi ed on the basis of employment conditions?

Answer. On the basis of employment conditions, activities in the economy are classi ed as
organised and unorganised. The organised sector offers job security and employment bene ts,
while the unorganised sector is marked by low wages and lack of job security. In rural areas, the
unorganised sector comprises landless agricultural labourers, sharecroppers and artisans. In urban
areas, this group contains small-scale industry workers, construction workers, street vendors, rag-
pickers, etc.

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Q16 Compare the employment conditions prevailing in the organised and unorganised sectors.

Answer. The employment conditions prevailing in the organised and unorganised sectors are
vastly different. The organised sector has companies registered with the government and hence, it
offers job security, paid holidays, pensions, health and other bene ts, xed working hours and
extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites.
There is no job security, no paid holidays or pensions on retirement, no bene ts of provident fund
or health insurance, un xed working hours and no guarantee of safe work environment.

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Q17 Explain the objective of implementing the NREGA 2005.

Answer. The objective of implementing the NREGA 2005 was to provide 100 days of guaranteed
employment to those people in rural India who can work, and are in need of work. This Right to
Work has been implemented in 200 districts. If the government is unable to provide this
employment, then it has to give unemployment allowances to the people.

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Q18 Using examples from your area compare and contrast the activities and functions of private
and public sectors.

Answer. DIY

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Q19 Discuss and ll the following table giving one example each from your area.

Answer.

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Q20 Give a few examples of public sector activities and explain why the government has taken
them up.

Answer. A few examples of public sector activities are provision of water, electricity and some
modes of transport. The government has taken these up because water and power are needed by
everyone. If the work of providing electricity and water is left to private enterprises, the latter
might exploit this opportunity and sell these at rates which the masses cannot afford. Hence, to
ensure that basic amenities like water and power are available for all, the government supplies
these at low and affordable rates.

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Q21 Explain how public sector contributes to the economic development of a nation.

Answer. The public sector contributes to the economic development of a nation by not mere
nancial pro ts. The public sector plays a vital role in contributing to the Human Development
Index via its functioning in health and education services. Also, by buying food grains at a “fair
price” from farmers, providing electricity, water, postal services at low rates, the government
ensures that the people have a good living. It utilises taxes and grants to pay for the same. Thus, it
plays a vital role in adding to the economic development of a nation, based on its human
development situation.

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Q22 The workers in the unorganised sector need protection on the following issues: wages, safety
and health. Explain with examples.

Answer. The workers in the unorganised sector need protection on the following issues: wages,
safety and health. In the construction sector, labourers are employed on a daily basis. Hence, they
have no job security. Here, wages too differ from time to time. Consequently, the government has

set up a minimum wages act to protect such workers from economic exploitation.

The same problem exists for miners working in private mining companies. Their safety is
secondary to the company’s pro ts, and as a result, many miners suffer grievous injuries (and
many a times, even die) due to inadequate safety gear and norms. Governments of most nations
have now laid down strict rules for private enterprises to ensure workers’ safety.

Most companies in the unorganised sector do not provide health insurance to their employees.
Some of these might be involved in dangerous factory production that may harm a worker’s health
in the long term. These workers need to be protected against the tyranny of the employer, and it is
here that the government steps in.

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Q23 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?

Answer.

Ways to generate more employment in the city of Ahmedabad have to be provided by the
government, especially in the unorganised sector. As the table shows, the organised sectorPoint of
View of Employers They prefer to employ workers on exible basis, i.e., employ them when
required. This means the workers are employed on temporary basis for the period when they are
required. In case extra work is there for a short period, i.e., 'in season', the workers can be paid
overtime wages. In case the work is machinery based and there are only a limited number of
machines, workers can be employed in shifts, including night shift. This will ensure delivery of
nished products in time to the customers. Point of View of Workers They always prefer
permanent employment so that they can have a regular income to look after their families. They
will then also get the other bene ts of regular employment like provident fund, gratuity, etc.
earnings are much higher than that of the unorganised sector even though the latter employs
almost 80% of the city workers. More companies need to be brought under the roof of the
organised sector so that workers from the unorganised sector are attracted to jobs there, with

higher and more secure wages. For this, the government must provide loans and aid to companies
transferring from unorganised to organised sectors.

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Q24 The following table gives the GDP in Rupees (Crores) by the three sectors:

(i) Calculate the share of the three sectors in GDP for 1950 and 2000.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?

Answer. (i) In 1950,
primary sector = 57.97%, secondary sector = 13.77%, tertiary sector = 28.26%
In 2000,
primary sector = 27.33%, secondary sector = 24.37%, tertiary sector = 48.30%

(ii)

(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has almost
doubled, while that of the primary sector has almost halved. The secondary sector has grown by
about 10% in the last ve years.

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