NCERT Solutions Class 10 Economics Chapter 2 Sectors Of The Indian Economy

Question1. 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                                               enjoy job security. (organised / Unorganized) sector
(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. (has / has not)
(ii)        Workers in the tertiary sector do not produce goods. (tertiary/agricultural)
(iii) Most of the workers in the organised sector enjoy job security. (organised / unorganised)
(iv)       A large proportion of labourers in India are working in the unorganised sector. (large / small)
(v)        Cotton is a natural product and cloth is a manufactured product. (natural / manufactured)
(vi)       The activities in primary, secondary and tertiary sectors are interdependent. (independent / interdependent)

Question 2. Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
(i)        Employment conditions
(ii)        The nature of economic activity
(iii)       Ownership of enterprises
(iv)       Number of workers employed in the enterprise

Correct Answer: (iii) Ownership of enterprises

Explanation: On the basis of who owns assets and is responsible for the delivery of services, an economy is classified into public sector and private sector.

(b) Production of a commodity, mostly through the natural process, is an activity in              sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology
Correct Answer: (i) primary
Explanation: When a commodity is produced by exploiting the natural resources, it is an activity of Primary sector.

(c) GDP is the total value of _                      during a particular Year.
(i) All goods and services
(ii) All final goods and services produced
(iii) All intermediate goods and services
(iv) All intermediate and final goods and services
Correct Answer: (ii) All final goods and services
Explanation: The value of final goods already includes the value of all intermediate goods that are used in the making of the final good. Hence while calculating the GDP we include the value of only final goods and services.

(d) In terms of GDP the share of tertiary sector in 2010-11 is                           .
(i) Between 20 to 30 per cent
(ii) Between 30 to 40 per cent
(iii) Between 50 to 60 per cent
(iv) 70 per cent

Correct Answer: (iii) Between 50 to 60 per cent
Explanation: Tertiary sector helps primary and secondary sectors by providing various types of services.

Question3. Match the following:

Answer:

Question4. 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) Potter;
Reason: Rest all works in tertiary sector while potter’s work is a part of primary sector.
(ii) Vegetable Vendor;
Reason: Teacher, doctor and lawyer, they these professions require formal education, while a vegetable vendor does not require a formal education.
(iii) Cobbler;
Reason: Rest all works in the public sector, while cobblers’ profession is a part of private sector.
(iv) SAHARA Airlines;
Reason: Rest all are public sector government undertakings, SAHARA Airlines is a private enterprise.

Question5. 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 the city?
Answer:

Question7. 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:One should focus on GDP and employment because these help in determining the size of an economy. Proper assessment of the share of different sectors towards GDP and the level of employment in different sectors would help in framing adequate policies by determining the important things like per capita income and productivity. For example if the share of primary sector to GDP is very less but the level of employment is huge, it indicates that the government needs to take adequate steps to improve the productivity of primary sector and also to utilise the excess of labour of primary sectors in other sectors of the economy.
Other issues which should be examined are:
•   Regional development and disparities
•   Equitable distribution of income and wealth
•   Poverty levels
•   Level of modernisation, etc.

Question8. Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Answer: The different kinds of works which we found adults around us doing for a living are as follows:
Doctors treating patients, teachers teaching, engineers and labourers working on construction site, shopkeepers involved in trading, farmers farming, accountants working in private firms, toy manufacturer making toys, dairy owner selling milk, etc.
We can classify them into three sectors on the basis of nature of economic activity, namely – primary, secondary, and tertiary.
• Primary sector will include farmers and dairy owners.
•  Secondary sector will include toy manufacturers, labourers and engineers working on construction site.
• Tertiary sector will include shopkeeper, doctors, teachers and accountants.

Question9. How is the tertiary sector different from other sectors? Illustrate with a few examples.
Answer: Tertiary sector is different from the other two sectors i.e. primary and secondary because it doesn’t produce goods like the other two sectors but provide support services for the production to take place in primary and secondary sector. It includes necessary services that may or may not directly help in the production of goods. For example, banking services, transportation and communication services, services of teachers, doctors etc. Owning to these reasons, it is also called as service sector.

Question10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
Answer: Disguised employment is a situation in which more people are employed in a work than actually required. This is the situation of underemployment where people are employed at less than their potential or capacity. For example, in rural area suppose 10 farmers are working in a field where only 5 farmers are required. If 5 extra farmers are removed, the productivity will not change. In this case 5 farmers are disguisedly unemployed. Another example of disguised employment from urban area can be of a small family run business (in which the whole family of 10 people is employed) which require maximum of 3 people.

Question11. Distinguish between open employment and disguised unemployment
.Answer: Open unemployment refers to a situation in which a person, who is able and willing to work, does not get an opportunity to work at the prevailing wage rate. E.g. there are 50 persons willing to work but only 30 persons are employed. Thus open unemployment is of 20 persons.
Disguised unemployment refers to a situation in which number of workers engaged in a job is much more than actually required and if some of them are withdrawn, total production will remain same. E.g., 6 persons are employed on a field. If 2 persons are withdrawn, total productivity remains unchanged. These 2 persons will constitute disguised unemployment.

Question12. “Tertiary Sector is not playing any significant role in the development of the Indian economy”. Do you agree? Give reasons in support of your answer.
Answer: No, I do not agree with the statement that “Tertiary Sector is not playing any significant role in the development of the Indian economy”.
Tertiary sector doesn’t produce goods but supports the production of primary and secondary sector. It includes some necessary services that may or may not directly help in the production of goods. For example: Services of teachers, doctors, banking services, transportation and communication services, etc.
In last forty years, while production has increased in all the three sectors, it has increased the most in tertiary sector. In 2010-11, it has emerged as the largest production sector in India replacing primary sector. With new services such as those based on information and communication technology, the share of tertiary sector in both GDP and employment has increased.
Thus, tertiary sector play an important role in the development in Indian economy.

Question13. Service sector in India employs two different kinds of people. Who are these?
Answer: The two different categories of people in service sector are:
(1) People whose activities directly help in the development of primary & secondary sector. These people do not produce any good but are a great support in production process. For example, services of people involved in transportation who transport primary and processed goods to the wholesale & retail shops.
(2) People who provide essential services but they may not directly help in production process, for e.g. teachers, doctors, lawyers etc.

Question14. Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
Answer: Unorganised sector is characterized by small and scattered units which are largely outside the control of government. Workers are often exploited in the unorganised sector. The reasons for the same are as follows:
1. Rules and regulations are not followed in unorganised sector.
2. In unorganised sector job are low-paid and often not regular.
3. There are no provisions for paid leave, holidays, leaves due to sickness, overtime, etc.
4. There is no job security.

Question15. How are the activities in the economy classified on the basis of employment conditions?
Answer: On the basis of employment conditions, the activities in the economy are classified into two sectors: organised and unorganised.
Organised sector covers those work places where terms of employment are regular and people are assured of work. The organizations are registered under various act such as Factories Act, Minimum wage act etc. On the other hand, unorganised sector is characterized by small and scattered units which are largely outside the control of government.

Question16.Compare the employment conditions prevailing in the organised and unorganised sector.
Answer: The differences in the employment conditions prevailing in the organised and unorganised sector are:

Question17. Explain the objective of implementing the NREGA 2005.
Answer: The central government in India made a law implementing the Right to Work in 200 districts of India. This was called NREGA 2005. The main objective of this act was to provide a minimum of hundred days of employment to all those who are able to work by the government. If the government fails to provide the employment, it will pay unemployment allowance to the people. This Act was further extended to include a large number of districts and in 2009 it was renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This act aims at increasing the level of income and employment in rural areas of India.

Question18.Using examples from your area compare and contrast that activities and functions of private and public sectors.
Answer: The contrast or dissimilarities between public sector and private sector are:

Question19. Discuss and fill the following table giving one example each from your area.

Answer: 

In public sector goods and services are supplied for social benefit, such as primary health services, defence, etc. These goods and services are required for building economic infrastructure, like railways, tele- communication etc. On the contrary, in private sector, different consumer goods, such as bread, butter, cotton, tv radio, etc. are supplied to earn profit. Different capital items, such as machines and machine tools are supplied by private sector. It also includes different services, such as hotels, tourism, hospitality, etc.

Question20. Give a few examples of public sector activities and explain why the government has taken them up.
Answer: Few examples of public sector activities are: Construction of roads and highways, constructions of dams for electricity generation, construction government schools and hospitals.
It is quite necessary for government to take up these tasks because of the following reasons:
1) Public sector provides many essential things at quite reasonable prices which the private sector cannot provide, as they are guided by profit motives.
2) Public sector provides medical and educational facilities either free of cost or at nominal prices.
3) Railways, post offices, steel plants etc. belong to the public sector, which contribute to the economic development of the nation.
These public sector activities are the responsibility of the government.

Question21. Explain how public sector contributes to the economic development of a nation.
Answer: At the time of independence, India did not have any industry worth mentioning. At that time the government decided to set up the public sector units in remote areas in all regions to have a balanced growth and to provide more employment in the country.
With the setting up of public sector enterprises, employment increased. This resulted in an increase in their income. With the increase in income, there was a demand for other activities, which further lead to the development of the region. Public sector provides many essential things at quite reasonable prices which the private sector cannot provide. Public sector provides medical and educational facilities either free of cost or at nominal prices. Railways, post offices, steel plants etc. belong to the public sector, which contribute to the economic development of the nation.

Question22. The workers in the unorganised sector need protection on the following issues: wages, safety and health. Explain with examples.
Answer: (1) Wages: In unorganised sector, workers are given less wages then the government announced minimum wage scale. They often do not have fixed income, women are not paid at par to man. For Example: Farm labourers
(2) Safety: In unorganised sector, safety norms are often ignored or not followed. People work in unhygienic and hazardous conditions. For example: workers involves in bangle industry, or fire crackers making companies.
(3) Health: In unorganised sectors there are no leaves due to sickness, medical facilities, medical insurance, etc. For example: workers working on construction sites.

Question23. 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: 

To generate more employment in the cities following can be done:
•   Government should give financial support to bring more unorganised sector companies under the roof of organised sector.
•   The entrepreneurs in unorganised sector should be encouraged to change them into organised sector by providing them incentives like tax rebates etc.
•   People should be made aware of the advantages of organised sector, to motivate them to take up jobs in organised sector.

Question24. The following table gives the GDP in Rupees (crores) by the three sectors:

(i)  Calculate the share of three sectors in GDP for 1950 and 2011.
(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) The share of three sectors in GDP for 1950:
•   Primary Sector – 57.97%
•   Secondary Sector – 13.77%
•    Tertiary Sector- 28.26%
The share of three sectors in GDP for 2011:
•   Primary Sector – 16.74%
•   Secondary Sector – 25.56%
•    Tertiary Sector- 57.68%
(ii) Share of GDP in percentage - Students pls draw graph