CBSE Class 10 Economics Sector of Indian Economy Worksheet Set A

CHAPTER: 2: SECTORS OF INDIAN ECONOMY

ONE MARK QUESTIONS

Question. Mention any one feature of the unorganised sector.
Answer : Unorganised sector is not registered with the government.

Question. Where is the disguised employment found mostly?
Answer : The disguised employment is mostly found in the agriculture sector.

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 in which the natural products are changed into other forms.
Answer : Primary sector is the sector in which the natural products are changed into other forms.

Question. When we produce goods by exploiting the natural resources, in which category of economic sector such activities come?
Answer : When goods are produced by exploiting the natural resources, it is an activity of the primary sector.

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. 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. What was the most important sector of economic activities at the earliest stages of development?
Answer : Primary sector was the most important sector of economic activities at the earliest stages of development.

Question. What does GDP stands for ?
Answer : GDP stands for Gross Domestic Product.

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.

Question. Give four reasons for the rising of the tertiary sector in India.
Answer : The four reasons for the rising of the tertiary sector in India are - provision of basic services, rise in income, development of primary and secondary sectors and development of ICT.

THREE MARKS QUESTIONS

Question. Distinguish the service conditions of organised sector with that of unorganised sector.
or
Explain with suitable examples which part of the service sector is not growing in importance.
Answer : The service conditions of the organised and the unorganised sector are:
a. Service conditions of Organised sector:
1. These are the big units.
2. These units are registered with the government.
3. There are some formal processes and procedures in this sector. Therefore, it is called organised.
4. There is security of employment.
b. Service conditions of unorganised sector:
1. These are the small and scattered units,
2. These units are not registered with the government.
3. There are no formal processes and procedures in this sector. Therefore, it is called Unorganised.
4. There is no security of employment.

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. With the example of sugarcane, explain the interdependence of all the three sectors of the economy.
Answer : All the three sectors primary, secondary and tertiary are highly interdependent. They need the help of each other, without which none of the sectors would be able to complete its production or service. For example: Cultivation of sugarcane comes under the primary sector. This cultivated sugarcane, is the raw material for sugar-making industries (comes pnder secondary sector]. Sugarcane is transported to the sugar mills with the help of vehicles which comes under the tertiary sector. Sugar made by sugar mills are further transported to various markets and sold by retailers and wholesalers using tertiary sector.

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. What is unorganised sector? Describe the working procedure of this sector.
Answer : Unorganised sector are the small and scattered units. These units are not registered with the government. The working procedure of this sector are: 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 is 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. 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. Explain disguised unemployment with two examples, one from urban areas and other from rural areas.
Answer : When more than the required people are working in a field, is called disguised unemployment. In several areas, all the members of a family work in the same agricultural land (which is small and does not require so much members]. In urban areas, people like plumber, carpenter, painter are not able to find work on a daily basis and hence do the odd job.

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. How did NREGA 2005 bring upliftment of the rural people? Explain.
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. 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. What constitutes the unorganised sector in the urban areas? Why do workers in this area need protection?
Answer : Workers in small scale industry, casual workers in construction, trade and transport constitutes the unorganised sector in the urban areas. Workers in unorganised sector of the urban areas need protection because a. They are paid very low. b. Their work is erratic and so the income.

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. Highlight the three factors responsible for the growth of service sector in the Indian economy.
Answer : Due to the following reasons, the tertiary sector is rising in importance in India: a. Rise in the basic services provided by the government. b. The development in the primary and secondary sectors has led to the development of the tertiary sector. c. Due to the rise in income, people have started spending on the various kinds of services.

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. Why does disguised employment not help in the productivity of the country? Explain with the help of an example.
Answer : In the disguised unemployment, extra people are working on the fields. They are not required for work. All seems working. No one sits idle. They share the labour effort. They work less than their potential. There is hidden unemployment. Underemployment is not just a feature of the primary sector. It can also be seen in the service sector such as people doing odd jobs like painters, plumbers etc. The extra people working in these sectors does not help in increasing the production. Their presence or absence will not affect the total production. For example: if a piece of land require only 8 people for completing the production but 10 people are engaged. The two people working are extra as they do not have any job opportunities outside. The land has a limit to produce. Engaging more people will not help in increasing the production from the land.

FIVE MARKS QUESTIONS

Question. Give five reasons for the rising importance of the tertiary sector in production.
Answer : Five reasons for the rising importance of the tertiary sector in production are: a. Rise in the basic services provided by the government. b. The development in the primary and secondary sectors has led to the development of the tertiary sector. c. Due to the rise in income people have started spending on the various kinds of services. d. Due to the development of new kinds of services like IT sector services. e. Due to the introduction of the new economic policy liberalisation, privatisation and globalisation, the trade expanded all over the world and the role of service sector became significant.

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. What is GDP? Explain the process to calculate GDP.
Answer : GDP can be defined as the total value of all the final goods and services produced by the three different sectors in a country in a financial year. GDP is a complex task. It is undertaken by the Central Government ministry after collecting all the data from the different states and the union territories.

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 :

Question. In what ways can employment be increased in urban areas ?
Answer : Job opportunities can be increased in the urban areas through the following ways:
a. Government should invest in transportation and storage.
b. Government should provide loan to the people for starting their own business at reasonable rate of interest.
c. Opportunities for new industries should be identified, located and promoted in the small towns.
d. Opening of the services like the cold storages.
e. Jobs can be created in the field of education, health and tourism sector. f. Jobs can be created by launching the various government schemes.

Question. Why Primary Sector is also known as ‘Agriculture and related sector’? Explain with examples.

Answer : Refer TB: Pg-20 (Answer this question in the Class Note Book)

Question. Explain the meaning of Secondary sector of economic activities using examples.

Answer : The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity.

2. For example, using cotton fiber from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material, we make sugar or gur. (Manufacture/ use machines)

3. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as ‘industrial sector’.

Question. Explain the meaning of Tertiary sector of economic activities using examples. Why this sector is known as ‘Service Sector’?

Answer :

1. These are activities that help in the development of the primary and secondary sectors. 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

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

3. Service sector also includes some essential services that may not directly helping the production of goods such as, doctors, teachers, lawyers, washer man, cobblers, people in administrative services, certain new services based Information Technology and accounting workers.

Question. Differentiate between Final Goods and Intermediate goods with example.

Answer :

• Final Goods: - All goods which are meant either for consumption by consumers or for investment by firms are called final goods. They are finished goods meant for final use.

•  Intermediate Goods: - All goods which are used as raw material for further production of other goods or for resale in the same year are known as intermediate goods. Example: In the production of biscuit, final product is the biscuit and wheat, sugar etc are the intermediate goods. 

Question. What is GDP? How is GDP calculated in India?

OR

Explain how to calculate GDP? Explain with example.(CBSE/ CCE- 2014/2015/2016)

Answer :

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 (Financial Year). And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country.

2. Or it is the value of all final goods and services produced in all three sectors within a country during a particular year.

3. In India, the mammoth task of measuring GDP is undertaken by a Central (Finance) Government ministry. This Ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP. (Example- Production of biscuit) Ref: TB Pg: 22 

Question. Why is that “only value of final goods and services” taken while calculating GDP?

Answer :

1. While calculating GDP, not every good or service that is produces and sold needs to be taken. It makes sense only to include the final goods and services.

2. This is because the value of final goods already includes the value of all the intermediate goods that are used in making of the final goods.

3. If we count the value of the intermediate goods, then we would be counting the value of the same things a number of times.
(Example- Production of biscuit) Ref: TB Pg: 22 

Question. Evaluate the shifts that have taken place in different sectors of Economy during the last hundred years.

OR

Discuss the historical Changes took place in the development of Sectors.

Answer :

PRIMARY:

Generally, it has been noted from the histories of many, now developed, countries that at initial stages of development, primary sector was the most important sector of economic activity. As the methods of farming changed and agriculture sector began to prosper, it produces much more food than before. Many people could now take up other activities.

SECONDARY:

Over a long time (more than hundred years), and especially because new methods of manufacturing were introduced, factories came up and started expanding. Those people who had earlier worked on farms now began to work in factories in large numbers.

TERTIARY:

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

Question. Draw the Graph –I Given in text Book page No. 24 on note book and do a comparative study on the contribution of different sectors into GDP in 1971-1972 and 2011-2012. Answer the give questions. (Data based on NCERT TEXT BOOK ‘Understanding Economic Development’
Answer :

1. Which was the largest producing sector in 1971-72?

2. Which is the largest producing sector in 2011-12?

3. Which sector has grown most over the last forty years?

4. What was the GDP of India in 2011-12? (Note: Write the answer in the class note book)

Question. Draw the Graph-3 given in text book page no.25 and do a comparative study on the employment generation in three sectors in 1972-1973 and 2011-2012. Answer the following questions. (Data based on NCERT TEXT BOOK ‘Understanding Economic Development’ Answer :

What was the share of Primary sector in employment in 1972-1973?

1. What was the share of Secondary sectors in employment in 1972-73?

2. What was the share of Tertiary sectors in employment in 1972-73?

3. What is the share of Tertiary sector in employment in 2011-12?

4. Which sector provides the largest share of employment both in 1972-73 and 2011-12?

(Note: Write the answers in the class note book)

Question. Discuss the reasons for the increasing significance of Tertiary sector in last 40 years in India.

Answer :

1. 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. In a developing country the government has to take responsibility for the provision of these services.

2. The development of agriculture and industry leads to the development of service such as transport, trade, storage and the like, as we have already seen. Greater the development of the primary and secondary sectors more would be the demand for such services.

3. 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. You can see this change quite sharply in cities, especially in big cities.

4. Over the past decade or so, 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. (Full Text Answer)

Question.“Under employment can also be seen in all other sectors”. Explain with examples.

Answer : Refer TB: Pg No-22

Note: Write the answer in your Class note book.

Question. What does ‘Under employment’ or ‘Disguised Unemployment’ mean?

OR

What is ‘Under employment’? Explain with an example. CBSE (October-2012)

Answer :

1. Under employment is a situation where everyone is working, none remains idle, but in actual fact their labour effort gets divided.

2. Each one is doing some work but no one is fully employed. This is the situation of underemployment, where people are apparently working but all of them are made to work less than their potential.

3. This kind of underemployment is hidden in contrast to someone who does not have Job and is clearly visible as unemployed. Hence, it is also called disguised unemployment.

Question. In what ways can employment be increased in urban areas?

Answer :

• In India about 60 per cent of the population belongs to the age group 5-29 years. Out of this, only about 52 per cent are attending educational institutions. A few ways to increase employment opportunities other than large-scale industries in India are:

1. A study conducted by the Planning Commission (now known as NITI Aayog) estimates that nearly 20 lakh jobs could be created in the education sector alone.

2. Similarly, if we are to improve the health situation, we need many more doctors, nurses, health workers etc. These are some ways by which jobs would be created.

3. Every state or region has potential for increasing the income and employment for people in that area.

4. It could be tourism, or regional craft industry, or new services like IT. Some of these would require proper planning and support from the government.

Question. Compare the three sectors of economy on the basis of the supply of employment in the last forty years. (Based on Graph 3 shows the share of employment in the three sectors in 1972- 73 and2011-12) (Data based on NCERT TEXT BOOK ‘Understanding Economic Development’

Answer :

1. A remarkable fact about India is that while there has been a change in the share of the three sectors in GDP, a similar shift has not taken place in employment. The primary sector continues to be the largest employer even in the year 2012.

2. It is because not enough jobs were created in the secondary and tertiary sectors. Even though industrial output or the production of goods went up by more than nine times during the period, employment in the industry went up by around three times.

3. The same applies to tertiary sector as well. While production in the service sector rose by more than 14 times, employment in the service sector rose around five times.

Question. ‘Not all of the service sector is growing equally well’. Support your answer with arguments.

Answer :

1. 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.

2. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.

3. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them. Hence, only a part of this sector is growing in importance.

Question. Suggest a few methods by which employment opportunities could be created In rural areas.

OR

In which three ways can employment be increased in rural areas? Explain with examples. CBSE (October-2012)

Answer :

1. By spending some money or bank loan to construct a well for family to irrigate the land which would help framer to grow more than one crop in a year.

2. Construct dam and canals to irrigate may farms and this could create lot of employment within the agriculture.

3. By investing on transportation and storage of crops or making rural roads, would encourage farmers to grow more and sell crops and also provide employment in services like transport or trade.

4. Local Banks loan at reasonable rate of interest to buy seeds fertilizers, agricultural equipments and pump sets to draw water would help to cultivate land more

5. By identifying, promoting and locating industries and services in Semi-rural areas whereby employ large number of people. E.g. Setting Dal Mill to procure and process pulse crops and sell in the cities.

Question. Write short note on ‘Mahatma Gandhi National Rural Employment Guarantee Act2005 (MGNREGA 2005)’. (CBSE/CCE-2014)

OR

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

Answer :

1. For the short-term and for some quick measures, the Central Government in India made a law implementing the Right to Work in about 625 districts of India. It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005).

2. Under MGNREGA 2005, all those who are able to, and are in need of, work in rural areas are guaranteed 100 days of employment in a year by the government.
3. If the government fails in its duty to provide employment, it will give unemployment allowances to the people. The types of work that would in future help to increase the production from land will be given preference under the Act.

Question. Distinguish between Organized and Unorganized Sectors of employment.

Answer :

Organized Sectors of Employment:

1. Organized sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work. .

2. 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 Establishments Act etc. Workers in the organized sector enjoy security of employment.

Unorganized Sector of Employment:

1. The unorganized sector is characterized by small and scattered units, which are largely outside the control of the government. There are rules and regulations but these are not followed.

2. Jobs here are low-paid and often not regular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. People are asked to leave without any reason.

Question. Why is protection and support to workers of unorganized necessary?

Answer :

1. Unorganized sector jobs, which pay a very low salary. They are often exploited and not paid a fair wage. Their earnings are low and not regular.

2. These jobs are not secure and have no other benefits.

3. Besides getting the irregular and low paid work, these workers also face social discrimination (especially S T and S Cs and backward communities form this sector).

Please click on below link to download CBSE Class 10 Economics Sector of Indian Economy Worksheet Set A