Objective Questions
Question : ATM is an example of
(a) primary sector (b) secondary sector
(c) tertiary sector
Answer : C
Question : The goods that are used as raw materials for further production are known by which name?
(a) Final goods (b) Consumer goods
(c) Material goods (d) Intermediate goods
Question : Hidden unemployment is also called
(a) organised sector
(b) disguised unemployment
(c) tertiary sector
(d) contractual unemployment
Question : Which among the following is a feature of unorganised sector?
(a) Fixed number of work hours
(b) Paid holidays
(c) Employment is insecure
(d) Registered with the government
Question : Which among the following workers are not very productive in tertiary sector?
(a) Educated and trained professionals
(b) Repair persons and daily wage earners
(c) People in defence services
(d) People working in health centres and hospitals
Question : All economic activities that directly involve conversion of natural resources are classified under
(a) secondary sector (b) primary sector
(c) tertiary sector (d) government sector
Question : Public health is responsibility of
(a) primary sector (b) government
(c) private sector (d) none of these
Question : Service is
(a) tangible (b) intangible
(c) both a and b (d) physical Product
Question : The sum total of production of all goods and services in the three sectors are combinedly
(a) NDP (b) NI
(c) GNI (d) GDP
Question : In the last 100 years, the sector gaining prominance is
(a) secondary sector (b) primary sector
(c) tertiary sector (d) all of these
Question : The type of unemployment in which more number of people work than actually needed is known as
(a) disguised unemployment
(b) seasonal unemployment
(c) underemployed
(d) over employed
Question : A labourer working under a contractor, is in which type of sector?
(a) Public sector (b) Unorganised sector
(c) Service sector (d) None of these
Fill In The Blank
DIRECTION : Complete the following statements with appropriate word(s).
Question : The goods produced by exploiting natural resources comes under the category of _____. .
Answer : Primary sector
Question : Another name for secondary sector is _____. .
Answer : Industrial sector
True/False
DIRECTION : Read each of the following statements and write if it is true or false.
Question : Maximum share of GDP comes from Public Sector.
Answer : True
Question : Tertiary sector is gaining importance in India.
Answer : True
DIRECTION : Mark the option which is most suitable :‘
(a) If Both assertion and reason are true, and reason is the correct explanation of assertion.
(b) If Both assertion and reason are true, but reason is not the correct explanation of assertion.
(c) If Assertion is true, but reason is false.
(d) If Both assertion and reason are false.
Question : Assertion : Reliance industries is a privately-owned firm.
Reason : Government is a major stakeholder is reliance industries.
Answer : (c) Assertion is true, but reason is false.
Reliance industry is a privately-owned firm as the assets and delivery of goods and services in Reliance is controlled by private individuals.
Question : Assertion : An individual who manufactures flour from wheat is engaged in primary sector.
Reason : When some process of manufacturing is used the product is a part of secondary sector.
Answer : (d) Both assertion and reason are false.
An individual who manufactures flour from wheat is engaged in secondary sector as the products that are not manufactured directly from nature but require some manufacturing process are a part of secondary sector.
Question : Assertion : 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 : All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.
Answer : (c) Assertion is true, but reason is false.
In India, not the entire service sector is growing equally well. Service sector in India employs many different kinds of people. 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.
These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.
Question : Assertion : Mohan is a shopkeeper who pays his taxes on time. He has employed two workers Rakesh and Raghu in his shop. He pays them well, however, none of the workers get any paid leaves in the year.
Reason : Rakesh and Raghu are employed in unorganized sector.
Answer : (a) Both assertion and reason are true, and reason is the correct explanation of assertion.
If Rakesh and Raghu were employed in organized sector, they would receive benefits such as paid leaves, medical insurance and pension schemes from the employer. Mohan is not following labour laws as he does not provide any paid leave to his employees in the year.
Question : Assertion : There are several goods and services that the society needs; however, the private sector does not produce all of them.
Reason : Private sector is profit driven.
Answer : (a) Both assertion and reason are true, and reason is the correct explanation of assertion.
Some of the services such as defense require a lot of spending and do not provide any profit. Therefore, private sector does not invest in such activities. Also, certain services such as public transportation and irrigation facilities require massive spending which is beyond the capacity of private sector.
Very Short Answer Type Questions
Question : Who has the ownership of the assets in the public sector?
Answer : The ownership of the assets in the public sector is with the government.
Question : Mention any one feature of the unorganised sector.
Answer : Unorganised sector is not registered with the government.
Question : In which sector are a large number of workers losing their jobs since 1990 ?
Answer : In the organised sector, a large number of workers losing their jobs since 1990.
Question : Name the sector which forms the base for all other products.
Answer : Primary sector forms the base for all other products.
Question : Name the sector which helps in the development of primary and secondary sectors.
Answer : Tertiary sector helps in the development of primary and secondary sectors.
Short Answer Type Questions
Question : Name the sector that is the largest employer in India. Why does this sector produce only a quarter of the national GDP?
or
Explain the meaning of disguised employment with the help of an example.
Answer : Primary sector is the largest employer sector in India.
This sector produce only a quarter of the national GDP because there is a problem of disguised unemployment in this sector. Though almost 60% people of India are engaged in this sector but all are not required there.
Many of them are extra people. They are forced to be in this sector as there is less job opportunities in the other sectors.
Question : How does service sector help in the development of the primary and secondary sectors? Explain with examples.
Answer : Tertiary sector does not produce any good but it helps in the production of goods in the primary and the secondary sectors. For example:
a. In the primary sector we need the service of transportation, cold storage, banking etc., which comes under the service sector.
b. In the secondary sector, we need the help of transportation for bringing the raw materials and taking the final products to the market. Banking, trade, technology etc., are the other requirements.
Question : Explain the working condition of the workers in unorganised sector.
Answer : The working condition of the workers in unorganised sector:
a. They do not follow the rules and regulations followed by the government.
b. There are no formal processes and procedures in this sector. Therefore, it is called unorganised.
c. There is no security of employment.
d. There are no fixed working hours and workers are not paid for overtime.
e. There are no benefits like paid holidays, medical facilities, safe working environment, provident fund etc.
Question : “Consequences of the environmental degradation do not respect national or state boundaries.” Explain.
Answer : Yes, it is true to say that the consequences of the environmental degradation do not respect national or state boundaries.
For example: If any country or state causes air pollution then it will affect not only to that state or country but to all throughout the world.
If there is water pollution caused by any state/ country then it will affect all states/ countries through which the river is flowing.
Question : Explain the interdependence of all three sectors giving examples from transportation system.
Answer : Tertiary sector does not produce any good but it helps in the production of goods in the primary and the secondary sectors. For example:
a. In the primary sector, we need the service of transportation for getting the supply of the agricultural inputs and also for selling the food grains in the market or supplying the agricultural raw materials to the agro- based industries.
b. In the secondary sector, we need the help of transportation for bringing the raw materials and taking the final products to the market.
c. Transportation is required in the service sector as well such as for providing medical facilities to the people and other services like fire services etc.
Question : Why has the entire tertiary sector not grown in importance? Explain.
Answer : The service sector includes two different kinds of people. One who is highly educated, skilled and earning very high such as doctors, engineers, software professionals etc., and on the other hand those who are not educated and unskilled such as street vendors, repair persons etc. Though the service sector has grown over the past few decades but not all of the service sector has grown equally. The educated and highly skilled workers have grown very high whereas the uneducated and the unskilled are still struggling.
Question : Explain the objectives of implementing the NREGA 2005.
Answer : Mahatma Gandhi National Rural Employment
Guarantee Act:
a. This Act was passed in the year 2005.
b. According to this Act, 100 days of guaranteed employment is provided to all those who are able to work and are in need of work in the rural areas.
c. Unemployment allowance is provided to the workers if the government is riot able to provide them work within 15 days.
d. This Act helps in providing income and livelihood to the people in the rural areas.
Question : Though maximum share of GDP is coming from tertiary sector, but still the share of employment in the primary sector is maximum. Discuss.
Answer : (a) This situation is because not enough jobs are created in the secondary and tertiary sectors.
(b) Though the industrial production of goods went up by eight times, but employment in the industry went up by only 2.5 times.
(c) Similarly in the tertiary sector, production rose by 11 times but employment rose less than three times. As a result, more than half of the population is dependent on the primary sector which contributes only a quarter of GDP.
Question : Why does only final goods and services are included while calculating National Income?
Answer : Only final goods and services are included while calculating National Income because:
(a) Final goods are those goods which have crossed the boundary line of production and are ready for final consumption and investment.
(b) The value of final goods already includes the value of all the intermediate goods that are used in making the final goods. This would lead to the problem of double counting if all the goods of the economy will be included while calculating national income.
(c) This should be avoided because if the value of any commodity is counted more than once it will result in overestimation of national income.
Question : What is the meaning of under employment? In which economic sector is under employment conditions more prevalent? &Why?
Answer : A condition in which each individual appears working but no one is fully employed. This is the situation of under employment. People under such type of employment cannot utilize their potential and capacity in full.
It is in primary sector because-
(i) This sector comprises the poorest section of society in majority
(ii) People engaged in this sector are illiterate or semi-literate.
Long Answer Type Questions
Question : Describe the provisions of National Rural Employment Guarantee Act, 2005.
Answer : Mahatma Gandhi National Rural Employment Guarantee Act:
a. This act was passed in the year 2005.
b. According to this Act, 100 days of guaranteed employment is provided to all those who are able to work and are in need of work in the rural areas.
c. Unemployment allowance is provided to the workers if the government is not able to provide them work within 15 days.
d. This act helps in providing income and livelihood to the people in the rural areas.
Question : Compare the employment conditions prevailing in the organised and unorganised sector?
Answer : The comparison between the employment conditions prevailing in the organised and unorganised sector is as follows :
