Sectors of the Indian Economy

Class 10 > Social Science > Economics > Sectors of the Indian Economy

NCERT Solutions for Chapter 2 Sectors of the Indian Economy Class 10 Economics

Book Solutions

1

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

Answer

(i) has not
(ii) tertiary
(iii) organised
(iv) large
(v) natural
(vi) interdependent
Exercises Page Number 35

2(a)

Choose the most appropriate answer.
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

Answer

(iii) ownership of enterprises
Exercises Page Number 35

2(b)

Choose the most appropriate answer.
Production of a commodity, mostly through the natural process, is an activity in _________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

Answer

(i) primary
Exercises Page Number 35

2(c)

Choose the most appropriate answer.
GDP is the total value of _________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

Answer

(ii) all final goods and services
Exercises Page Number 35

2(d)

Choose the most appropriate answer.
In terms of GDP the share of tertiary sector in 2013-14 is between _________ per cent.
(i) 20 to 30
(ii) 30 to 40
(iii) 50 to 60
(iv) 60 to 70

Answer

(iii) between 50 per cent to 60 per cent
Exercises Page Number 35

3

Match the following:

Problems faced by farming sector

Some possible measures

1.

Unirrigated land

(a)

Setting up agro-based mills

2.

Low prices for crops

(b)

Cooperative marketing societies

3.

Debt burden

(c)

Procurement of food grains by government

4.

No job in the off season

(d)

Construction of canals by the government

5.

Compelled to sell their grains to the local traders soon after harvest

(e)

Banks to provide credit with low interest

Answer

Problems faced by farming sector

Some possible measures

1.

Unirrigated land

(d)

Construction of canals by the government

2.

Low prices for crops

(c)

Procurement of food grains by government

3.

Debt burden

(e)

Banks to provide credit with low interest

4.

No job in the off season

(a)

Setting up agro-based mills

5.

Compelled to sell their grains to the local traders soon after harvest

(b)

Cooperative marketing societies

Exercises Page Number 36

4

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

Answer

(i) Tourist guide
He is appointed by the government, while dhobi, tailor and potter belong to the private sector.

(ii) Vegetable vendor
His is the only profession that does not require a formal education.

(iii) Cobbler
The rest are workers in the public sector, while his profession is part of the private sector.

(iv) SAHARA Airlines
It is a private enterprise, while the rest are government undertakings.
Exercises Page Number 36

5

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

Place of work

Nature of employment

Percentage of working people

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in marketplaces with formal license

-

15

People working on the street, construction workers, domestic workers

-

20

Working in small workshops usually not registered with the government

-

-

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

Answer

Place of work

Nature of employment

Percentage of working people

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in market places with formal license

Organised

15

People working on the street, construction workers, domestic workers

Unorganised

20

Working in small workshops usually not registered with the government

Unorganised

50

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

Exercises Page Number 36

6

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

Answer

The classification of economic activities into primary, tertiary and secondary is useful on account of the information it provides on how and where the people of a country are employed. also this helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.
If the tertiary sector is developing much faster than the primary sector, then it implies that agriculture is depleting, and the government must take measures to rectify this. The knowledge that the agricultural profession is becoming unpopular or regressive can only come if we know which sector it belongs to. Hence it is necessary to classify economic activities into these there sectors for smooth economic administration and development.
Exercises Page Number 36

7

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

Answer

For each of the sectors that we came across in this chapter, one should focus on employment and GDP because these determine the size of a country's economy. A focus on employment and GDP helps determine two important things- per capita income and productivity. Hence, in each of the three sectors, employment rate and status as well as its contribution to the GDP help us understand how that particular sector is functioning and what needs to be done to initiate further growth in it.
Yes, the other issues which should be examined are:
• Balanced regional development
• Equality in income and wealth among the people of the country.
• How to eradicate poverty
• Modernization of technology
• Self-reliance of the country
• How to achieve surplus food production in the country.
Exercises Page Number 36

8

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

Teacher, doctor, engineer, electrician, cattle rearer, shopkeeper, washerman, milk vendor, farmer, insurance manager, government employees, sweeper, domestic worker, factory owner, vegetable grower, work at a construction site.
(i) Primary Sector : Farmer, fruit and flower growers, vegetable grower and cattle rearers.
(ii) Secondary Sector : Work at a construction site, factory owner.
(iii) Tertiary Sector : Engineer, doctor, electrician, teacher, shopkeeper, washerman, insurance manager, government employees, domestic worker, sweeper.
Exercises Page Number 36

9

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

Answer

The tertiary sector different from other two sectors. This is because other two sectors produce goods but, this sector does not produce goods by itself. But the activities under this sector help in the development of the primary and secondary sectors. These activities are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. For this reason this sector is also known as service sector.
Exercises Page Number 36

10

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

Answer

Disguised Unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as Hidden Unemployment.In such a situation more people are engaged in a work than required.
For example:
• In rural areas, this type of unemployment is generally found in agricultural sector like - in a family of 9 people all are engaged in the same agricultural plot. But if 4 people are with drawn from it there will be no reduction in output. So, these 4 people are actually disguisedly employed.
• In urban areas, this type of unemployment can be seen mostly in service sectors such as in a family all members are engaged in one petty shop or a small business which can be managed by less number of persons.
Exercises Page Number 36

11

Distinguish between open unemployment and disguised unemployment.

Answer


Open Unemployment

Disguised unemployment

When a country’s labour force do not get opportunities for adequate employment, this situation is called open unemployment.

This is a kind of unemployment in which there are people who are visibly employed but actually they don’t have full employment. In such a situation more people are engaged in a work than required.

This type of unemployment is generally found in the industrial sector of our country. This is also found among the landless agricultural labourers in rural areas.

This type of unemployment is generally found in unorganized sector where either work is not constantly available or too many people are employed for the same work that does not require so many hands.

Exercises Page Number 36

12

“Tertiary sector is not playing any significant role in the development of 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 Indian economy. The tertiary sector has contributed vastly to the Indian economy, especially in the last two decades. In the last decade, the field of information technology has grown, and consequently, the GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.
Exercises Page Number 36

13

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

Answer

The service sector in India employs the following two different kinds of people. They are:
• The people involved in the services that may directly help in the production of goods. For example, people involved in the transportation, storage, communication, finance etc.
• The people involved in such services that may not directly help in the production of goods e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers means those who give services to the primary service providers.
Exercises Page Number 37

14

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

Answer

Yes, workers are exploited in the unorganized sector. This would be clear from the following points:
• There is no fixed number of working hours. The workers normally work 10 - 12 hours without paid overtime.
• They do not get other allowances apart from the daily wages.
• Government rules and regulations to protect the labourers are not followed there.
• There is no job security.
• Jobs are low paid the workers in this sector are generally illiterate, ignorant and unorganized. So they are not in a position to bargain or secure good wages.
• Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.
Exercises Page Number 37

15

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 organized and unorganized sectors.
• Organized Sector This sector covers those enterprises which are registered by the government and have to follow its rules and regulations. For example, Reliance Industries Ltd., GAIL etc.
• Unorganized Sector It includes those small and scattered units which are largely outside the control of the government. Though there are rules and regulations but these are never followed here. For example, casual workers in construction, shops etc. In this sector there is no job security and the conditions of employment are also very tough.
Exercises Page Number 37

16

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

Answer

The employment conditions prevailing in the organised and unorganised sectors are vastly different. The organised sector has companies registered with the government and hence, it offers job security, paid holidays, pensions, health and other benefits, fixed working hours and extra pay for overtime work. On the other hand, the unorganised sector is a host of opposites. There is no job security, no paid holidays or pensions on retirement, no benefits of provident fund or health insurance, unfixed working hours and no guarantee of safe work environment.
Exercises Page Number 37

17

Explain the objective of implementing the NREGA 2005.

Answer

The objective of implementing the NREGA 2005 are:
• To increase the income and employment of people.
• Every state/region can develop tourism, regional craft, IT etc. for additional employment.
• The central government made a law implementing the right to work in 200 districts.
• NREGA aims to provide employment of 100 days. If it fails to do so, it will give unemployment allowances to the people.
Exercises Page Number 37

18

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

Answer

• Public Sector : There are the organisations which directly or indirectly come under the control of government, like MTNL, railways, Indian Airlines etc.
• Private Sector : In private sector organisations the ownership is in private hands and they run these organisations with the motive of earning profits. BSES and Sahara Airlines are the examples of private sector.
Exercises Page Number 37

19

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

Well-managed organisation

Badly-managed organisation

Public sector

Private sector

Answer

Well-managed organisation

Badly-managed organisation

Public sector

Delhi Metro Rail Corporation

Air India

Private sector

Reliance Mobile

Satyam

Exercises Page Number 37

20

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

Answer

A few examples of public sector activities are provision of water, electricity and some modes of transport. The government has taken these up because water and power are needed by everyone. If the work of providing electricity and water is left to private enterprises, the latter might exploit this opportunity and sell these at rates which the masses cannot afford. Hence, to ensure that basic amenities like water and power are available for all, the government supplies these at low and affordable rates.
Exercises Page Number 37

21

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

Answer

In the following ways Public sector contributes to the economic development of a nation:
• It promotes rapid economic development through creation and expansion of infrastructure.
• It creates employment opportunities.
• It generates financial resources for development.
• It is ensuring equality of income, wealth and thus, a balanced regional development.
• It encourages development of small, medium and cottage industries.
• It ensures easy availability of goods at moderate rates.
• Contributes to community development i.e. to the Human Development Index (HDI) via health and educational services.
Exercises Page Number 37

22

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

Answer

The workers in the unorganised sector need protection:→ Wages: Labourers who are employed as repair person, vendor etc. do not have fixed income. They nearly manage to earn their living. They are not employed all through the year.
• Safety: Workers in unorganized sector are not provided with safe drinking water or clean environment. Eg., Working in mining, chemical industries is hazardous.
• Health: Leave not granted in case of sickness. Medical facilities are not offered, Eg., Construction workers.
Exercises Page Number 37

23

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

 -

Organised Sector

Unorganised Sector

Total

No. of workers

4,00,000

11,00,000

15,00,000

Income (Rs)

32,000 million

28,000 million

60,000 million

It is clear that while a larger portion of workers is working in the unorganized sector, the per capita earning of those in the organized sector is more. The government should encourage the entrepreneurs in the unorganized sector to change them into the organized sector. Moreover, government should introduce some incentives so that more industries could be opened up in the organized sector.

Exercises Page Number 37

24

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

Year

primary

secondary

tertiary

2000

52,000

48,500

1,33,500

2013

8,00,500

10,74,000

38,68,000

(i) Calculate the share of the three sectors in GDP for 2000 and 2013.
(ii) Show the data as a bar diagram similar to Graph 2 in the chapter.
(iii) What conclusions can we draw from the bar graph?

Answer

(i) In 2000,

primary sector = 22.22%, secondary sector = 20.73%, tertiary sector = 57.04%

In 2013,

primary sector = 13.94%, secondary sector = 18.70%, tertiary sector = 67.36%


(ii)


(iii) We can draw the conclusion that the share of the tertiary sector in the GDP has increased by 10%, while that of the primary sector has almost halved. The secondary sector has grown by about 2% in the last 13 years.

Exercises Page Number 37

Ads