CBSE Class 10 Economics Sectors Of Indian Economy Worksheet Set B

Objective Type Questions

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Choose the incorrect option from the following :
List I                             List II
(a) Courier          (1) Tertiary Sector
(b) Fisherman      (2) Primary Sector
(c) Carpenter       (3) Primary Sector
(d) Banker           (4) Tertiary Sector
Answer : C

Question. Which of the following is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT Sector
(d) Industrial sector
Answer : B

Question. Identify the difference between the organised and unorganised sectors.
(a) Employees in organised sector are mainly involved in agriculture and allied activities, while the employees in unorganized sector are mainly involved in manufacturing activities that take place with the help of equipment in factories.
(b) Firms in organised sector are registered by the government and have to follow certain norms of employment as set by the government, while the unorganised sector is characterised by small and scattered units which are largely outside the control of the government.
(c) Employees in organized sector are mainly self-employed, while the employees in unorganized sector are mainly employed in government or public sector jobs.
(d) In a country, the contribution of organized sector is minimal to the GDP, while the unorganized sector mainly supports the economic growth of a country.
Answer : B

Question. Which of the following is a benefit of a tertiary sector?
(a) The activities of tertiary sector help in the development of primary and secondary sector.
(b) The tertiary sector helps in the production of goods by directly using natural resources.
(c) The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
(d) The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
Answer : A

Question. Which of the following is true about Mahatma Gandhi National Rural Employment Guarantee Act
(a) The government has to ensure to increase the number of jobs in unorganized sector.
(b) The government is required to provide 100 days of employment in rural areas to people who are able to and in need of work.
(c) The government has to ensure that all the unemployed individuals in rural areas must get  100 per day as unemployment benefits.
(d) The government is required to provide free health check ups and medical facilities to unemployed people in rural areas for at least 100 days in a year.
Answer : B

Question. Public Sector stands for :
(a) Most of the assets owned by big companies.
(b) Assets owned by Government.
(c) Most of the assets owned by a group of people.
(d) Most of the assets owned by an individual.
Answer : B

Question. Which of the following refers to the intermediary good?
(a) Goods that are included in the estimation of GDP.
(b) Goods that are not used as raw material for production of other goods during a year.
(c) Goods that are used as raw material for the production of other goods during a year.
(d) Goods that are not resold by the firms to make profit during a year.
Answer : C

Question. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country. 
(c) It is the difference between value of goods imported and the value of goods exported.
(d) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : B

Question. Arrange the following in the correct sequences –
i. Ginning ii. Cotton spinning
iii. Dyeing cotton fabric iv. Growing cotton
Options –
(a) iv-i-ii-iii
(b) i-iv-iii-ii
(c) iii-iv-i-ii
(d) iii-iv-ii-i
Answer : B

Question. Choose a method to tackle the problem of underemployment in a country.
(a) Identify, promote and locate industries and services where a large number of people can be employed.
(b) Provide debt-waiver schemes for farmers so that they can easily take loans to increase agricultural activities.
(c) The government should provide unemployment benefits to citizens.
(d) The government should focus on developing jobs in the unorganized sector as most of the people are employed in unorganized sectors.
Answer : A

Question. The goods that are derived by exploiting natural resources are referred to as the goods of _____.
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : A

Question. Which of the following sectors is the largest producing sector in India?
(a) Primary sector
(b) Modern sector
(c) Tertiary sector
(d) Secondary sector
Answer : C

Question. Which of the following is true for disguised unemployment?
(a) When individuals are unemployed for more than 100 days in a year, they are disguisedly unemployed.
(b) If individuals become unemployed because a country starts using new technology and the skills of workers become obsolete, they are disguisedly unemployed.
(c) If individuals become unemployed because they are changing their jobs or moving from one place to another, they are disguisedly unemployed.
(d) When individuals are engaged in some work, however, they work less than their potential, then they are disguisedly unemployed.
Answer : D

Question.

The above image shows which sector of economic activities ?
(A) Tertiary Sector
(B) Primary Sector
(C) Joint Sector
(D) Secondary Sector
Answer : B

True or False

Question. The tertiary sector is not playing any significant role in the development of Indian economy. (True/ False)
Answer : False

Question. The purpose of the Public Sector is not just to earn profits while activities in the sector are guided by the motive to earn profits only. (True/ False)
Answer : True

Question. There has been a big change in the three sectors of economic activities in India but a similar shift has not taken place in the share of employment. (True/ False)
Answer : True

Question. The public sector plays an important role in the economy of India by creating and expanding infrastructure such as the construction of roads, bridges, railways, schools, hospitals, etc. (True/ False)
Answer : True

Question. The unorganised sector in urban areas constitutes casual workers especially in construction, trade and transport as well as the people who are employed on their own doing small jobs such as selling on the street or doing repair work. (True/ False)
Answer : True

Match the following :

Answers : 1. (D), 2. (A), 3. (C), 4. (E), 5. (B)

Assertion and Reasoning Based Questions

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 : An individual who manufacture flour from wheat is engaged in primary sector.
Reason : When some process of manufacturing is used the product is a part of secondary sector.
Answers : (d) 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 : Leela works five days a week, receives her income on the last day of each month and gets medical facilities from her firm.
Reason : Leela is working in organized sector.
Answers : (a) The firms in organized sector 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

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.
Answers : (a) 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.

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.
Answers : (c) 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.
Answers : (a) 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 : In India, over the forty years between 1973- 74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
Reason : Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.
Answers : (c) There are several reasons for increased production in tertiary sector such as increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question. Assertion : Reliance industries is a privately-owned firm.
Reason : Government is a major stakeholder in reliance industries.
Answers : (c) 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 : The development of agriculture and industry leads to the development of service sector.
Reason : As the primary and secondary sectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.
Answers : (a) As the primary and secondary sector develops the demand for the aforementioned tertiary activities increase. Not just the demand for mentioned services increases, but as individuals become better off, the demand for education, health services, professional training and communication also increase. Therefore, the development of primary and secondary sectors leads to the development of service or tertiary sector.

Question. Assertion : GDP shows how big an economy is.
Reason : GDP is the value of all goods and services produced within the domestic territory of a country in a year.
Answers : (a) GDP is the value of all final goods and services produced within a country. A higher GDP is indicative of higher production level and higher economic activity. Also, a higher GDP implies people of the country are earning more so it is indicative of the size of an economy.

Question. Assertion : In India, the primary sector is the largest employer.
Reason : The demand for services has increased enormously.
Answers : (b) The primary sector remains the largest employer in India because not enough jobs were created in the secondary and tertiary sectors. However, the demand for services has increased owing to increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question. Assertion : When calculating the total value of goods and services produced in a country, the value of all goods and services at each stage of production should be calculated.
Reason : At each stage of production some value is added to a good or service, therefore, the value added at each stage of production is added to derive the total value of goods and services in an economy.
Answers : (d) When calculating the total value of goods and services produced in a country, the value of final goods and services is calculated. If we add the value of goods and services at each stage of production, we will get an inflated GDP as the same value would be included multiple times.

Source/Extract Based Questions

Read the source given below and answer the following questions.
There are many activities that are undertaken by directly using natural resources. When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector.The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary.
The product is not produced by nature but has to be made and therefore some process of manufacturing is essential.This could be in a factory, a workshop or at home. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector.After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. 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 productions process. 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 retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade.

Answer the following MCQs by choosing the most appropriate option:

1. The goods that are derived by exploiting natural resources are referred to as goods of _________ .
(a) primary sector
(b) modern sector
(c) secondary sector
(d) tertiary sector
Answer : (a) primary sector.

2. Which of the following is another name for primary sector?
(a) Service sector
(b) Agriculture and related sector
(c) IT sector
(d) Industrial sector
Answer : (b) Agriculture and related sector.

3. Which of the following is a benefit of a tertiary sector?
(a) The activities of tertiary sector help in the development of primary and secondary sector.
(b) The tertiary sector helps in the production of goods by directly using natural resources.
(c) The individuals involved in tertiary sector use better quality seeds and manure to produce agricultural goods.
(d) The individuals involved in tertiary sector buys raw materials directly from farmers to convert them into final goods.
Answer : (a) The activities of tertiary sector help in the development of primary and secondary sector.

4. Which of the following best defines the gross domestic product (GDP) of a country?
(a) It is the decrease in the value of assets over a given period of time.
(b) It is the value of final goods and services produced with in the domestic territory of a country.
(c) It is the difference between value of goods imported and the value of goods exported.
(d) It is the value of all final goods and services produced by the citizens of a country within and outside the country.
Answer : (b) It is the value of final goods and services produced with in the domestic territory of a country.

Read the sources given below and answer the questions that follows –
Source A – Organised and unorganised sectors
Organised sector covers those enterprises where the terms of employment are regular and people have assured work. These are registered by the government and have to follow it rules and regulations which are given in various laws such as Factories Act, Minimum Wages Act. Workers get several benefits from the employers like paid leave, pension etc.
On the other hand, unorganised sector is characterised by small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. There is no provision for overtime, paid leave, holidays etc.
Source B – Workers working in unorganised sector in rural areas
Workers working in unorganised sector in the rural areas are like landless agricultural labourers, Small and marginal farmer and different artisans. They can be helped in many way. They should be given adequate facilities for timely delivery of seeds agricultural inputs, credit, storage facilities and marketing outlets.
Sources C – Workers Working in unorganised sector in urban areas 
In the urban areas, unorganised sector comprise mainly of workers in small scale industries, casual workers in construction trade and’ transport etc. Small scale industry needs government’s support for processing raw material and marketing of their output

1. Workers are exploited in the unorganised sector. Do you agree with this view ? Give reason.
Answer : Yes, I do agree with the view that workers are exploited in the unorganised sector as this sector is largely outside the control of the government. Rules and regulations are not followed. Jobs are low paid and not regular.

2. How can marginal farmers be helped in unorganised sector.
Answer : Marginal farmers can be helped by giving adequate facilities for timely delivery of seeds, agricultural inputs, Credit etc.

3. Who are the people at work in the unorganised sector in the urban areas
Answer : Workers in small scale industries, casual workers in contributions, trade and transport etc are workers in urban areas in unorganised sector.

Read the source given below and answer the questions that follow:
We must realise that some of the suggestions discussed above would take a long time to implement. For the short-term, we need some quick measures. Recognising this, 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). 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. 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.

1. In how many districts Government in India has implemented the law for Right to Work.
(a) About 625 districts of India.
(b) About 600 districts of India.
(c) About 650 districts of India.
(d) About 675 districts of India.
Answer : A

2. Under MGNREGA 2005, how many days of employment are guaranteed by the government in rural areas.
(a) About 150 days
(b) About 100 days
(c) About 200 days
(d) About 250 days
Answer : B

3. What is the full form of MGNREGA?
(a) Mahatma Gandhi National Rural Employment Growth Act
(b) Mahatma Gandhi National Role Employment Guarantee Act
(c) Mahatma Gandhi National Rural Employment Guarantee Act
(d) None of these
Answer : C

4. What type of employment opportunities are provided under MGNREGA?
(a) Work that would in future help to increase the production from land.
(b) Work that would in future help to increase the production from industries.
(c) Work that would in future help to increase the infrastructure.
(d) None of these
Answer : A

Read the extract and answer the questions that follows:
There are many activities that are undertaken by directly using natural resources. Take, for example, the cultivation of cotton. It takes place within a crop season. For the growth of the cotton plant, we depend mainly, but not entirely, on natural factors like rainfall, sunshine and climate. The product of this activity, cotton, is a natural product. Similarly, in the case of an activity like dairy, we are dependent on the biological process of the animals and availability of fodder etc. the product here, milk also is a natural product. Similarly, minerals and ores are also natural products. When we produced a good by exploiting natural resources, it is an activity of the primary sector. Why primary ? This is because it forms the base for all other products that we subsequently make. Since most of the natural products we get are from agricultural, dairy, finishing, forestry, this sector is also called agriculture and related sector The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial
activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. This could be in a factory, a workshop or at home. For example, using cotton fibre from the plant, we spin yarn and weave cloth. Using sugarcane as a raw material, we make sugar or gur. We convert earth into bricks and use bricks to make houses and buildings. Since this sector gradually became associated with the different kinds of industries that came up, it is also called as industrial sector. After primary and secondary, there is a third category of activities that falls under tertiary sector and is different from the above two. 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 productions process. 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 retails shops. At times, it may be necessary to store these in godowns. We also may need to talk to other over telephone or send letter (communication) or borrow money from banks (banking) to help production and trade. Transport, storage, communications, banking, trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.

1. Which group of activities is associated directly with the natural resources ?
Answer : Primary sector is associated directly with the natural resources.

2. What is secondary sector ? Why is called as industrial sector ?
Answer : (i) Secondary sector includes the activities which manufacture finished goods from raw materials with the help of machines.
(ii) It is also called as isndustrial sector because this sector gradually became associated with the different kinds of industries that came up.

3. Give examples of tertiary sector. Why tertiary sector is also known as service sector ?
Answer : (i) Transport, communication, storage, banking, trade are some examples of tertiary sector.
(ii) The activities of tertiary sector generate service rather than goods. Therefore this sector is called as service sector.

Very Short Answer Type Questions

Question. TISCO : Private, ________ : Public.
Answer : Railways.

Question. Complete the following table.

Answer :

Question. The main objective of a private sector enterprise is ________.
Answer : To earn a profit.

Question. Complete the following :
The activities of the primary sector are called primary because _______.
Answer : They form the base for all other products that we subsequently make.

Question. Correct the following statement and rewrite.
When more people work in a job than required it is known as seasonal employment.
Answer : When more people work in a job than required it is known as hidden disguised unemployment.

Question. Identify the sector with the help of the following features :
(a) Registered by the government
(b) Workes enjoy security of employment.
(c) It is also called organised sector.
Answer : Public sector.

Question. Correct the following statement and rewrite. Private sector industries are those which are owned by the state or its agencies
Answer : Public sector industries are those which are owned by the state or its agencies

Question. Which sector utilises machines to produce goods?
Answer : Secondary sector.

Question. Which sectors does the tertiary sector give support to ?
Answer : Primary and secondary sector.

Question. According to a study conducted by the Planning Commission, how many jobs can be created in the education sector alone?
Answer : 20 lakh jobs.

Question. Which sector does utilise natural resources directly?
Answer : Primary sector.

Question. Which laws do the organised sector enterprises need to follow ?
Answer : The organised sector enterprises need to follow various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.

Question. Insurance and education is an example of :
Answer : Tertiary sector.

Question. What is the main motive of private sector organisations?
Answer : Profit.

Question. Why is secondary sector called industrial sector ?
Answer : Since this sector gets associated with various kind of industries in the course of production, that is why it is also called industrial sector.

Question. Give example of private sector organisations.
Answer : Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited (RIL).

Question. Why is tertiary sector called service sector ?
Answer : As the tertiary sector produces services unlike the primary and secondary sector which produce goods, it is also called service sector.

Question. What kind of industries and services can be promoted and located in semi-rural areas where a large number of people may be employed ?
Answer : A dal mill, cold storage, honey collection centres and industries that process vegetables and agricultural produce like potato, sweet potato, wheat, rice, tomato, fruits, which can be sold in outside markets etc. can be set up in semi-rural areas to promote employment.

Question. What is primary sector ?
Answer : When we produce a good by exploiting natural resources, it is an activity of the primary sector.

Question. Which sector has reduced since independence in terms of share in National Income?
Answer : Primary sector.

Question. What is GDP ?
            OR
What do you understand by GDP of a country ?
Answer : It is the value of all final goods and services produced within a country during a particular year.

Question. Which sector is characterised by small and scattered units which are largely outside the control of the government.
Answer : The unorganised sector.

Question. Which are the basic services ?
Answer : Services such as hospitals, educational institutions, police stations, defence, post and telegraph services, banks, insurance companies, courts, municipal corporations, transport, etc. are considered as basic services.

Question. What is the full form of MGNREGA?
Answer : Mahatma Gandhi National Rural Employment Guarantee Act.

Question. In how many districts was the law called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005) initially implemented?
Answer : About 625 districts of India.

Question. Planning Commission has now been replaced by :
Answer : NITI Aayog.

Question. What type of goods and services are included for calculation of GDP in India?
Answer : All the final goods and services are included for calculation of GDP in India.

Question. What if the underemployed people are removed from primary sector and provide them with proper work somewhere else ?
Answer : If this happens, the production in primary sector will not suffer and the incomes of the people who are employed in other work would increase.

Question. What happens in the situation of underemployment ?
Answer : In the situation of underemployment, people seem to be apparently fully employed but actually all of them work less than their potential.

Question. Where do we find majority of workers from scheduled castes, tribes and backward communities?
Answer : The unorganised sector.

Question. In the public sector, who owns most of the assets and provides all the services?
Answer : The government.

Question. Which aspects of human development does the government need to pay attention ?
Answer : Government needs to pay attention to facilities like availability of food and nutrition, safe drinking water and housing facilities for the poor.

Short Answer Type Questions

Question. What is an economic activity ?
Answer : Any activity which is legal and is conducted with the objective of earning money is an economic activity. For example, farmers ploughing field, labourers helping in road construction, doctors curing patients, traders selling goods etc. are examples of economic activities.

Question. How do we calculate the value of various goods and services and know the total production in each sector ?
Answer : In India, the task of measuring GDP is undertaken by a central government body known as CSO or the Central Statistics Office. This department, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume and prices of various goods and services produced in different sectors. The value of all the final goods and services produced in each sector during a particular year provides the total production of the sector for that year. The sum of production in all the three sectors gives what is called the Gross Domestic Product (GDP) of a country.

Question. What are the non-economic activities ?
Answer : All the activities whose main objectives are not to earn money rather they are carried on with some other objective like affection, power, affiliations, mercy etc. are called non-economic activities. For example, a mother taking care of her child, a doctor curing his father, a labourer repairing his own house etc. are examples of non-economic activities.

Question. Why is the tertiary sector becoming more important in India ? Explain. 
Answer : The tertiary sector becoming more important in Indiabecause of following reasons :
(i) Developing country like India is responsible for the basic services like hospitals, education, post and telegraph, courts, etc.
(ii) The development of primary and secondary sectors increases the demand for services such as transport, trade, storage.
(iii) Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.
(iv) Rapid growth of services sector also benefitted from external demand such as software industry and call centre services.
(v) Liberalisation of financial sector provided an environment for faster growth of financial services.

Question. What does this mean that the primary sector provided employment to more than half of the working population while its share in GDP was less than 25 percent ?
Answer : This indicates that there is a widespread underemployment in primary sector. If many of the people are moved from primary sector to other works, the overall production in this sector will not be influenced and if these people who have been moved are provided full employment somewhere else, overall GDP will increase and the family incomes of such people will also increase leading to the upliftment of their living standard.

Question. Why does disguised unemployment not help to enhance the productivity of the country?
Answer : The disguised unemployment is a situation in which a person seems to be fully employed but his presence or absence neither increases nor decreases the production respectively. It means he works less than his full potential. The disguised unemployment does not help in enhancing the productivity of the country because there is a widespread disguised employment in primary sector while its share in national income is continuously falling. If many of the people are moved from primary sector to other works, the overall production in this sector will not be influenced and if these people who have been moved are provided full employment somewhere else, overall GDP will increase. But this does not happen because the secondary and tertiary sectors have failed to provide employment to such people.

Question. “The declining share of agriculture in the Gross Domestic Product (G.D.P.) is a matter of serious concern in India.” Support this statement with any five reasons.
                                                                                                    OR
“The declining share of agriculture in the Gross Domestic Product (GDP) is a matter of serious concern in India.” Support the statements.
Answer : The declining share of agriculture in the Gross Domestic Product (G.D.P) is a matter of serious concern in India. 
Five reasons to support this statement are as follows :
(i) Indian farmers are facing challenge from international competition.
(ii) Government is reducing investment in agricultura sector, especially irrigation sector.
(iii) Subsidy in fertilizers has decreased, leading to a rise in cost of production.
(iv) Reduction of Import duties on agricultural products.
(v) Farmers are withdrawing their investments from agriculture causing a downfall in the employment in agriculture.

Question. Explain the objective of implementing the MGNREGA 2005.
Answer : (i) Providing unskilled work for rural people in the rural areas.
(ii) Providing earning security to unskilled labour of rural areas.
(iii) To improve the standard of living of rural masses.
(iv) To empower the rural masses by increasing their decision making power.

Question. What is underemployment ?
Answer : Underemployment refers to a situation in which a person seems apparently fully employed but he does not have work using his full potential. The acute form of underemployment is the disguised unemployment in which a person seems to be completely employed but his presence or absence neither increases nor decreases the production respectively.

Question. Why is the value of only final goods and services counted while calculating GDP ?
Answer : While calculating the Gross Domestic Product (GDP) the value of only final goods and services is counted because the value of final goods and services already includes the value of all the intermediate goods that are used in making the final good. For example, the value of bread already includes the value of flour and labour used in the making of bread. If all these values are separately calculated and added, they will amount to double counting and will present false picture of GDP.

Question. Workers are exploited in the unorganised sector. Do you agree with this view ? Give reasons in support of your answer :
                                                                                  OR
‘‘Workers are exploited in unorganised sector in India.’’ Support the statement with suitable examples.
Answer : I do agree with the statement. The unorganised sector is characterised by small and scattered units which are not under the effective control of the government. Though government has framed rules and regulations for the units in this sector but they are not followed. In this sector jobs are low-paid and often irregular. There is no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is also not secure and it depends on the whims of the employer. When there is less work or employer wants, people can be asked to leave without any reason. These uncertainties became causes of exploitation of labour in unorganised sector.

Question. Write in brief on MGNREGA.
                     OR
Describe the role played by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in improving the employment situation in India.
Answer : MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act 2005. It is a rural employment programme. Under this programme, all those who are in need of work in rural areas are guaranteed 100 days of employment in a year by the government. If the government fails to provide employment within a stipulated time, it provides unemployment allowances to the people. One third of the jobs are reserved for women. Thus, MGNREGA has been providing employment to all the unemployed people in rural India. Thus it is reducing unemployment in India.

Question. How can employment opportunities be generated in the tourism and information technology sectors ?
Answer : (i) The government must promote business as tourism helps a lot of Indian states and their artisans to earn recognition and income.
(ii) Tourist places, hotels, roads, etc. infrastructure should be prepared for attracting more tourists.
(iii) Government should frame policies for providing job opportunities in IT Sector like BPOs.
(iv) Tourism and IT sector at present is booming in India which are providing more job opportunities to younger generation, artists, etc.

Question. Do you agree that agriculture in India takes place in the unorganised sector? Give three points.
Answer : Yes, I do agree that Indian agriculture is mostly concentrated in the unorganised sector. Following are the reasons:
(i) Agriculture in India faces the problem of disguised unemployment on a large scale and there is lack of alternative employment opportunities in agriculture sector. So this shows that agriculture is in unorganized sector.
(ii) There is no social security available to the farmers. If the crop of the farmers fails, they don’t have any other avenue to get it compensated.
(iii) Most of the farmers are dependent for credit upon moneylenders. They have to pay very high interest on such loans and are usually exploited. They don’t have reach to bank’s credit due to insufficient documents.

Question. Why is organised sector preferred by the employees ? Explain.
Answer : The organised sector preferred by the employees because of following reason:
(i) It will provide job security for all employees and even a certain amount of money is kept apart from the salary every year to pay the lump-sum amount
to the employees after retirement.
(ii) It covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
(iii) 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, the Minimum Wages Act, the Payment of Gratuity Act, Shops Act, etc.

Long Answer Type Questions

Question. What do you mean by the term Gross Domestic product? What precautions should we take in calculating GDP?
Answer : Gross Domestic Product (GDP): It is the value of all final goods and services produced within a country during a particular year. The precaution which is to be taken is that while calculating the Gross Domestic Product (GDP) is the value of only final goods and services are to be counted because the value of final goods and services already includes the value of all the intermediate goods that are used in making the final good. For example, the value of bread already includes the value of floor and labour used in the making of bread. If all these values are separately calculated and added, they will amount to double counting and present false picture of GDP.

Question. How do you think the sectoral composition of Indian economy has changed ?
Answer : At the time of independence, India was a very backward country with primary sector having the largest share in the GDP of the country. As the time passed, the methods of farming has changed and agriculture sector began to prosper and produced much more foodgrain than before. This helped many people to take up new activities like trading, craftmaking and manufacturing.
With the rise in incomes of the people in primary and secondary sectors, the demand for services began to emerge. The services like trading, medical care, education, transportation, communication, police services, judiciary, entertainment etc. emerged by leap and bound. This led to the expansion of tertiary services in India. The demand for services became so large in India that it led to the emergence of tertiary sector as the largest sector of the economy, secondary sectorbecame the second largest while the primary sector shrinks to the smallest sector in terms of contribution in GDP. Now Indian economy which once used to be considered as a primary economy is now recognised in the world as a service economy.

Question. Pavan is a poor agriculture labourer in a village. He wants to migrate to city in search of better employment opportunities. Can you suggest some ways through which his migration for better employment opportunities be stopped ?
Answer : Following are the various steps which can provide better employment opportunities to Pavan in his own area :
(i) Pavan may take some land on rent and start his own farming instead of working on others’ farms. He can also open a shop for daily need items.
(ii) The government may provide cheap credit facilities to him so that he can buy necessary implements for his farm like tractors or other equipment for farming, better seeds, fertilizers and other nutrients, wells or tube-wells etc. or stock for his shop. All this has employment generating effects.
(iii) He may also attend some vocational training programmes being run by the government and start some other occupation like repairing, tailoring etc.
(iv) The government must identify the potential industries in rural areas which may utilise the agricultural crops produced there and invite the entrepreneurs to start such industries there. 
These industries may employ excess labour force employed in agriculture.

Question. What historical changes have been brought about in the primary, secondary and tertiary sectors ?
Answer : (i) Primary Sector :
(a) As the methods of farming changed and the agricultural sector began to prosper, it produced much more food than before.
(b) Many people could now take up other activities. Buying and selling activities increased many times.
(c) However, at this stage most of the goods produced were natural products from the primary sector and most people were also employed in this sector.
(ii) Secondary Sector :
(a) Over a long time, and especially because new methods of manufacturing were introduced, factories came up and started expanding.
(b) Those people who had earlier worked on farms now began to work in factories in large numbers.
(c) Secondary sector gradually became the most important sector in the total production and employment.
(d) Hence, over time, a shift had taken place. This means that the importance of the sectors had changed.
(iii) Tertiary Sector :
(a) In the past 100 years, there has been a further shift from secondary to tertiary sector in developed countries.
(b) The service sector has become the most important sector, in terms of total production.
(c) Most of the working people are also employed in the service sector. This is the general pattern observed in developed countries.

Question. How do the economic activities be classified on the basis of nature of activities ? Explain in detail.
Answer : Economic activities can be classified on the following basis :
(i) On the basis of nature of activities : On the basis of this classification, the activities can be grouped into :
(a) Primary Sector : This sector includes the activities which are directly associated with the exploitation of natural resources like agriculture, forestry, fishing and animal husbandry etc.
(b) Secondary Sector : This includes the activities in which natural and other raw materials are converted into other forms with the help of machines. For example, manufacturing of shoes, cars, clothes etc.
(c) Tertiary Sector : This sector includes all the services which help in the operations of other two sectors as well. The services included are banking, transportation, communication, medical care, education etc.
(ii) On the basis of ownership of resources : On the basis of this classification, the economic activities can be grouped into :
(a) Public Sector: This sector includes the industria organisations that are owned and operated by the government for providing goods and services to the people. The primary objective of this sector is the maximisation of welfare of the people.
(b) Private Sector: This sector includes the industrial organisations that are owned and operated by the private entrepreneurs for providing goods and services to the people. The primary objective of this sector is the maximisation of profit for the organisations.
(iii) On the basis of organisation of activities : On the basis of this classification the economic activities can be grouped into :
(a) Organised Sector: This sector includes the organisations which are properly registered with the government under various laws and the employment in this sector is regular. The organisations observe all the rules framed by the government for the welfare of the employees of the organisations.
(b) Unorganised Sector: This sector includes the organisations which are neither registered with the government nor observe any rule framed by the government for the welfare of the employees of the organisations. The employment in this sector is not regular and the terms of the employment are not written.

Question. What are the ways to increase more employment for the people in rural India ?
Answer : Unemployment is a very serious problem which is being faced by India since the advent of Britishers and especially since independence. The government has to take many effective steps to increase the employment in the country. Following are the various steps which can be taken by the government to increase employment :
(i) The government may provide cheap credit facilities to the people so that they can buy necessary implements for their occupations. The farmers may build wells or tube-wells, buy tractors or other equipment for farming, better seeds, fertilizers and other nutrients for the agriculture. This all has employment generating effects.
(ii) The government may build better infrastructure in terms of transportation, electricity and communication etc. This will help in better and assured production and easier movement of goods from one place to another. This encourages the farmers and producers to expand the market for their products.
(iii) The government must identify the potential industries in rural areas which may utilise the agricultural crops produced there and invite the entrepreneurs to start such industries there.
(iv) Government may improve irrigation facilities so that farmers may harvest two or three crops in a year. This will increase employment.
(v) Government may initiate some more employment programme which require mental work rather than physical work like elder education programme etc.

Question. Reema works as a Head Technician in Mehta Textiles Private Ltd. whereas Shirin works as a Sales Executive in Kashvi Fashion Showroom. Identify the sectors of economy in which Reema and Shirin are working. Evaluate the role of each of these sectors in the Indian economy.
Answer : Reema works in secondary or manufacturing sector where as Shirin works in the tertiary or service sector Role of secondary/manufacturing sector – This sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity, hence it is also called as industrial sector. The product in this sector has to be made and therefore some process of manufacturing is essential, may be in a factory, a workshop or at home. For example, using cotton fibre from the plant, spinning yarn and weaving cloth etc. This sector provides large scale employment and helps in earning huge revenue. It helps in the development of a nation. Role of Tertiary/Service 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, goods need to be transported by trucks or trains and then sold in wholesale and retail shops; they have to be stored in godowns. So, transport, storage, communication, banking, trade are some examples of tertiary activities. Since these activities generate services, the tertiary sector is also called the service sector. It also includes services of teachers, doctors, and those who provide personal services such as washermen, barbers,
cobblers, lawyers, and people to do administrative and accounting works. In recent times, certain new services based on information technology such as internet cafe, ATM booths, call centres, software companies etc. have become important. Service sector contributes the most to the national economy these days and is further growing.

Question. How are primary, secondary and tertiary sector associated with each other ?
                                                     OR
How are the three sectors of economy interdependent ? Explain with five suitable examples.
Answer : All the three sectors namely primary, secondary and tertiary sectors are very closely associated with each other. It would not be an exaggeration to say that each one is important for the development of the other two.
So all of them are interdependent on each other. As far as primary sector is concerned, it is dependent on secondary sector for the inputs like fertilisers, urea, seeds, pesticides, tractors etc. Tertiary sector supports primary sectors by providing banking, transport, communication and extension services etc. whereas primary sector provides food support to rest both the sectors. Secondary sector gets all its raw material from the primary sector. It also acts as the market for many consumer products like TV, fridge, motor bikes, clothes, biscuits etc. Tertiary sector supports secondary sector by providing services like warehousing, transportation, banking, consultancy, communication etc. Tertiary sector is dependent upon primary sector for the food requirements and for services. Similarly, it is dependent upon secondary sector for various kind of equipment like trucks, computers, medical and surgical equipment, communication devices etc. through which it can provide services. Hence, this way we can understand the mutual interdependence of all the three sectors on each other.

Question. Write any five features of an organized sector.
Answer : Following are the various features of organised sector:
(i) Organised sector includes those organisations where the terms of employment are certain and people get regular and assured work.
(ii) These organisations are registered by the government.
(iii) They have to follow rules and regulations framed by it such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.
(iv) They give many kinds of job benefits to its employees.
(v) Working conditions are very conducive in organized sector.

Question. Explain how public sector contributes to the economic development of a nation.
Answer : Following are the various ways in which the public sector contributes to the development of the nation :
(i) The public sector is responsible for developing basic infrastructure which helps in development of all the sectors of the economy. Hence, the
public sector undertakes generation of electricity, construction of roads, bridges, railways, harbours, and providing irrigation through dams etc. The expenditure incurred on developing such facilities is tremendous which may not be possible for private sector.
(ii) The government supports the provision of various services to the general public in the form of subsidies. For example, for the availability of fertilisers to farmers at lower prices, the government provides production subsidy to fertiliser companies. Similar examples are cooking gas, diesel, electricity etc.
(iii) The government provides support to farmers by helping them in the form of procurement of farm products like wheat, rice and pulses. Such products
are then made available to people through ration shops.
(iv) The government provides various such other services like medical care, education, drinking water, sanitation, housing facilities to poor and other administrative services for the proper running of the country etc.
(v) The public sector generates many employment opportunities.

Question. Rohan works in a bank as a clerk while Sumit works on a construction site as a labourer. Find out the difference in their conditions of work and judge the benefits and drawbacks of working in the respective sectors.
Answer : Rohan works in an organised sector; he will enjoy security of employment. He will be expected to work only for a fixed number of hours. If he works more, he will have to be paid overtime by the employer. He will also get several other benefits from the employers like getting paid leave, payment during holidays, provident fund, gratuity etc. He is supposed to get medical benefits and, under the laws, the bank manager has to ensure facilities like drinking water and a safe working environment. When he will retire, he will get pension as well. In contrast, Sumit works in the unorganised sector which is characterised by small and scattered units which are largely outside the control of the government. There are rules and regulations but these are not followed. So, his job will be low-paid and often not regular. There will be no provision for overtime, paid leave, holidays, leave due to sickness etc. Employment is not secure. He can be asked to leave without any reason when there is less work, such as, during some seasons. A lot also depends on the whims of his employer.

Question. Mr. Swaminathan works in a government textile mill. Now the government is planning to sell that mill to a company in private sector. What can be the demerits of private sector ?
Answer : Following are some of the demerits of private sector :
(i) The very first demerit of private sector is its sole purpose is to earn profit and not the welfare of people. The people here include the employees of the organisation. If the owner of an enterprise feel that removing or reducing his staff will increase
his profits, he will not hesitate to remove people from the job. This will lead to a sense of insecurity among the people of the organisation.
(ii) There are many services which are required by the poorer sections of the society which the government provides them free of cost or at very cheap prices like health, education, irrigation, etc. If the mill is assigned to a private sector, it will not provide these service free or at subsidised rates and the poor sections of the society will not be able to afford and consume them.
(iii) The private sector is also not concerned with the equitable distribution of income in society or the balanced regional development.

Question. How far is it correct to say that in recent past, India has experienced some significant changes in the contribution of GDP in the service sector ? Explain.
Answer : (i) Not all service sectors are growing equally well Service sector in India employs many different kinds of people.
(ii) On one end, there are limited number of services that employ highly skilled and educated workers. On the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc.
(iii) But in terms of GDP, the contribution of service sector was almost 35% which increased to more than 50% in 2003.
(iv) As income of people rises, they began to demand many more services like eating out, tourism, shopping malls etc.
(v) Particularly in the past decade the IT sector or BPO’s provided jobs to many urban educated unemployed youth too. How to create more employment?

Question. What kind of support do you think the government must extend to vulnerable sections of society ?
Answer : The vulnerable sections can be divided into two sections :
(i) Rural vulnerable section : Small and marginal farmers, landless agricultural labourers, small artisans such as weavers, blacksmiths, carpenters and goldsmiths etc. are included in rural vulnerable sections. Most of the people in this section suffer from various social and economic disabilities like low incomes, poor standard of living, poor health, indebtedness and bleak future. They are the most disadvantageous section of rural India.
Without their progress, India cannot progress. It is the responsibility of the government to create an environment so that their progress can be ensured.
Following steps can be taken to support vulnerable sections of rural areas:
(a) Soft term loans for pre-harvest and post-harvest periods.
(b) Land revenue concessions.
(c) Subsidised agricultural inputs.
(d) Recovery of loans in the periods of good harvest.
(e) Soft term loans to rural traders and artisans.
(f) Social security measures like free or very cheap insurance, food articles, health, education, house etc.
(g) Vocational training for rural youth.
(h) Promotion of agro-based industries and contract farming.
(ii) Urban vulnerable section : Unorganised sector workers in small-scale industry, casual workers in construction, trade and transport etc., street vendors, garment makers, head load workers, rag pickers etc. constitute the urban vulnerable section.
Following steps can be taken to support vulnerable sections of rural areas :
(a) Soft term loans for starting small business.
(b) Subsidised inputs for production.
(c) Recovery of loans in relatively long time periods.
(d) Social security measures like free or very cheap insurance, food articles, health, education, house etc.
(e) Vocational training for youth.