Important Questions for Chapter 2 Sectors of the Indian Economy Class 10 Economics
Important Questions1
In which sector, the production of a commodity is mostly through the natural processes?
Answer
Primary sector.
VSAQ
2
Which sector has gained prominence over the last thirty years?
Answer
Tertiary sector.
VSAQ
3
Which sector includes activities that help in the development of the primary and secondary sector?
Answer
Tertiary sector.
VSAQ
4
Which sector had the highest share in GDP in 2003?
Answer
Tertiary sector.
VSAQ
5
TISCO and Reliance are owned by which sector?
Answer
Private sector.
VSAQ
6
A.T.M. is an example of which sector?
Answer
Service sector.
VSAQ
7
Name the sector which continued to be the largest employer even in the year 2000.
Answer
Primary sector.
VSAQ
8
In which sector is seasonal and disguised unemployment most prevalent in India?
Answer
Agriculture Sector.
VSAQ
9
Where is the disguised unemployment formed mostly?
Answer
Agriculture sector. Casual workers in the service sector.
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10
What do final goods and services mean?
Answer
Total production of the sectors.
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11
State the meaning of underemployment.
Answer
People are working less than what they are capable of doing.
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12
What is another name of underemployment?
Answer
Disguised unemployment.
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13
What do you mean by disguised unemployment?
Answer
More people engaged in a job than needed.
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14
On which basis, the sectors are classified into public and private sector?
Answer
Ownership of enterprises.
VSAQ
15
What does GDP stand for?
Answer
Gross Domestic Product.
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16
What is GDP (Gross Domestic Product)?
Answer
It is the value of final goods and services produced within the domestic territory of a country.
VSAQ
17
Who has the ownership of the assets in the public sector?
Answer
Government.
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18
How does public sector help in the development of a country?
Answer
Public sector invests in key and basic industries such as health, education, defence where private sector cannot invest.
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19
“What is the intention of the government in raising money through taxes?”
Answer
Government raise money through taxes and other ways to meet expenses on the services rendered by it.
VSAQ
20
Which sector helps in the development of the primary and secondary sector?
Answer
Tertiary sector.
VSAQ
21
National Rural Employment Guarantee Act was implemented in which year?
Answer
2005.
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22
What is the motive of public sector enterprises?
Answer
Social welfare and security
VSAQ
23
Which agency estimates the Gross Domestic Product (GDP) in India?
Answer
A ministry of the Union Government.
VSAQ
24
In terms of G.D.P., the share of tertiary sector in 2003 was?
Answer
Between 50 to 60%.
VSAQ
1
How is tertiary sector different from the other two sectors of economic activities? Explain.
Answer
Tertiary sector is different from other two sector because:
• It does not provide or produce goods.
• It provides services such as transport, I.T., communications, etc.
• It is the backbone of all the sectors.
SAQ
2
Classify the economic sectors on the basis of nature of activities. Mention the main feature of each.
Answer
Classification of economic sectors on the basis of nature of activities are:
• Primary sector: When we produce goods by exploiting natural resources, it is an activity of the primary sector, such as agriculture, dairy farming, fishing, forestry.
• Secondary sector: In this, natural products are changed into other forms through manufacturing that we associate with industrial activity. The product is not produced by nature but has to be made and therefore, some process of manufacturing is essential. For example, using cotton fibre from the plant we spin, yarn and weave cloth.
• Tertiary sector: It helps in the development of the primary and secondary sectors. They provide aid or a support for the production process. Transport, storage, communication, banking, trade are some examples of tertiary activities.
SAQ
3
Explain any three reasons for the Primary Sector to be the largest employer in India.
Answer
Primary sector continues to be the largest employer because:
• Enough jobs have not been created by the secondary and Tertiary sector.
• In the Tertiary sector though the production has risen almost fourteen times but employment has grown only five times.
• The people who are not employed in any other sector joins to the primary sector in search of work.
SAQ
4
Explain the meaning of tertiary sector. Mention any four economic activities of this sector.
Answer
The activities that help in the development of the primary and secondary sectors are known as tertiary sector. These activities by themselves do not produce any good but they provide an aid or support for the production process.
Four economic activities of this sector are banking, transport, storage, communication etc.
SAQ
5
Why is the tertiary sector becoming more important in India? Explain by giving any three reasons.
Answer
• In any country, several basic services like transport, bank, insurance, educational institutions etc. are required.
• The development of agriculture and industry lead to the development of services, such as transport trade, storage etc.
• As income level rises, certain sections of people started demanding many services like eating out, tourism, private hospitals etc.
SAQ
6
What constitutes the unorganised sector in urban areas? Why do workers in this sector need protection?
Answer
In the urban areas, unorganised sector comprises workers in small scale industry, casual workers in construction, trade and transport etc. It also includes street vendors, head load workers, garment markers, rag pickers etc. Workers in this sector need protection from over exploitation, differential treatment because of belonging to SC and ST.
SAQ
7
Explain how does the public sector contribute to the economic development of a nation?
Answer
Public sector contributes to the economic development of a nation by the following ways:
• Public sector provides many essential things at a reasonable cost, which private sector cannot provide.
• The public sector can set up heavy industry which require a lot of money.
• The purpose of the Public sector is not to earn money, but to benefit the people.
SAQ
8
“All of the service sector is not growing equally well in India.” Justify the statement with three arguments.
Answer
• Service sector in India employs different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers, such as managers, lawyers, accountants, etc.
• At the other end, there are a very large number of workers engaged in services, such as small shopkeepers, repair persons, transport persons. These people barely manage to earn a living and yet perform these services.
SAQ
9
How are all the three sectors of the economy interdependent? Explain this interdependence with the help of an example.
Answer
All the three sectors are highly interdependent on each other:
• All that is produced in the primary sector is of no use until it undergoes a change into finished product which is not possible without transportation.
• Secondary sector is the manufacturing sector. To make these products and to sell them in the market, we need transportation.
• For moving from primary to secondary sector and further to the market, requires services of trades at different places and require many other services. For all this we cannot think of working without transportation.
SAQ
10
How would income and employment increase if farmers are provided with loan, irrigation and transportation facilities?
Answer
• Loan provided can be used to construct a well, or to buy better quality of seeds and pesticides.
• Irrigation will help to have a second crop after the first one, even in the absence of monsoon.
• Transportation facility will facilitate taking their produce to the markets to sell.
SAQ
11
Explain the ways by which more employment can be created in a country like India.
Answer
The ways by which more employment can be created in a country like India are:
• If more dams are built and canal water is provided to all the small farmers, a lot of employment can be generated in agriculture sector.
• Providing cheap credit facilities and crop insurance can result in more employment.
• More money should be spent in transport and storage, because then more people can be employed.
• The government/banks can provide loan at cheap rates to improve irrigational facilities.
SAQ
12
Explain the term G.D.P. Why are only ‘final goods and services’ counted in G.D.P.?
Answer
G.D.P. is the sum of the money value of final goods and services produced in each sector during a particular year within domestic territory of a country. Only final goods and services are counted in G.D.P. because:
• The value of final goods already includes the value of all intermediate goods.
• To count the value of the flour and wheat separately is therefore not correct because then we would be counting the value of the same things a number of times.
SAQ
13
In your opinion, how far is it correct to say that NREGA 2005 as “Right to Work”?
Answer
NREGA is also called Right to Work:
• It has been implemented in 200 poorest of the poor districts of India.
• NREGA guarantees 100 days of assured work to the people who are able and in need of work.
• If the government fails to provide work, it will provide unemployment allowances to the people.
• One-third of the jobs are reserved for women.
SAQ
14
Why do people prefer to work in an organized sector? Explain.
Answer
Advantages of organized sector:
• People enjoy security of employment.
• People work for fixed hours.
• If they work more, they get overtime allowances.
• Paid leaves, payment during holidays, medical benefits, safe working environment and pension after retirement.
SAQ
15
Describe disguised unemployment found in India.
Answer
Disguised unemployment is the situation of underemployment, where people are apparently working but they are working less than their potential. This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence, it is also called disguised unemployment. This type of unemployment is more visible in agricultural sector in India.
SAQ
1
Differentiate between organized and unorganized sector.
Answer
Organized Sector:
• It is the one where the terms of employment are regular and people have assured work.
• 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 etc.
• It is called organized because it has some process and procedures.
• Workers in the organized sector enjoy security of employment. They are expected to work only a fix number of hours. If they work more, they have to be paid overtime by the employer.
Unorganized Sector:
• These are small and scattered units which are largely outside the control of the government.
• There are rules and regulations but these are not followed.
• Jobs here are low-paid and often not regular.
• Employment is not secure as people.
LAQ
2
Why is agriculture the most labour absorbing sector in India? How does disguised unemployment make it worse? Explain with an example.
Answer
• Agriculture is the most labour absorbing sector in India.
• Disguised unemployment it generally found in agriculture sector. People engaged in farming are generally more than required. Though it seems that they are working in the cultivation of land, but actually they are partly employed.
• For example: A farmer who has a land of 3 hectare which require only 2 persons for farming related to work but all the 7 family members are engaged in it. If 5 persons out of them are with drawn from the job, the total production will not fall. Therefore, 5 persons will come under the category of disguised unemployment.
LAQ
3
Explain why service sector is gaining more importance in the global economy.
Answer
Tertiary sector in India has been growing rapidly for a number of reasons:
• In a developing country, the government has to take the responsibility for the provision of basic services for example, hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies etc.
• The development of agriculture and industry leads to the development of services such as trade, transport, storage etc. The increase in the development of the primary and secondary sectors, more would be the demand for such services.
• As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals, private schools, professional training etc. This change was quite sharp in cities, especially in big cities.
• Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential.
• Government policy of privatisation has also led to growth of this sector.
LAQ
4
“When a country develops, the contribution of primary sector declines and that of secondary and tertiary sector increases.” Analyse the statement.
Answer
• In the initial stages of development, the primary sector was the most important sector of economic activity. As the methods of farming changed and agriculture sector began to prosper, people began to take up other activities.
• New methods of manufacturing were introduced, factories came up and started expanding.
• The Secondary sector gradually became the most important in total production and employment.
• With the development of areas like transport and administration, the service sector kept on growing. In the past 100 years, there has been a shift from the secondary to the tertiary sector in developed countries.
• The service sector has become the most important in terms of total production and employment. This is the general pattern observed in developed countries.
LAQ
5
State the characteristics of the unorganised sector.
Answer
The characteristics of the unorganised sector are:
• There are rules and regulations but these are not followed. Jobs here are low-paid and often not regular.
• There is no provision for overtime, paid leave, holidays, leave due to
• Employment is not secure. People can be asked to leave without any reason.
• When there is less work, such as during some seasons, some people may be asked to leave.
• A lot also depends on the whims of the employer.
LAQ
6
Explain with example, measures to generate employment in semi-rural areas.
Answer
The measures:
• The one way is to identify, promote and locate industries and services in semi-rural areas where a large number of people may be employed.
• For instance, suppose many farmers decide to grow arhar and chickpea (pulse crops). Setting up a dal mill to procure and process these and sell in the cities is one such example.
• Opening a cold storage could give an opportunity for farmers to store their products like potatoes and onions and sell them when the price is good.
• In villages near forest areas, we can start honey collection centres where farmers can come and sell wild honey.
It is also possible to set up industries that process vegetables and agricultural produce like potato, sweet potato, rice, wheat, tomato, fruits, which can be sold in outside markets.
LAQ
1
How do we count various goods and services? What precautions should be taken while counting goods and services ?
Answer
We calculate GDP to count value of goods and services. It is the market value of final goods and services produced in a country in a year.
• The final value of goods and services produced in a sector is calculated.
• Only the final value of a product or service is taken into, account to avoid double counting. For example, suppose a farmer sells wheat to a flour mill for rs. 10. The mill grinds it and sells it to a baker for ₹ 12 and then baker after converting it into a bread sells to a consumer for ₹18. Here the final product is bread so rs.18. It should be not be rs 8 + ₹ 10 + ₹ 20 = ₹ 38.
• Similarly, the final value of products or services produced is calculated.
• The sum total of all the final goods and services produced in all the sectors provide GDR.
HOTS
2
Explain with suitable examples that which part of the service sector is not growing in importance.
Answer
• The unorganized sector of the service sector is not growing in importance.
• A large number of workers in the small- scale industries, casual workers in construction, trade and transport, vendors and load workers, etc., barely manage to earn a living, but still they are working because they do not have any alternative.
• Their earnings are low and also not regular.
• They are paid a very low salary and there is no job security.
HOTS
1
How to create more employment in rural areas? Explain with the help of three suitable examples.
Answer
• Government can spend money or banks can provide loan for irrigation.
• Suppose one hectare of wheat can provide employment to the people for 50 days. So, the number of members can be increased. Examples:
• Constructing dams, canals or digging wells in villages would serve the needs of farmers for irrigation and also people engaged in such construction activity would gain employment.
• Development in transport facility by government and creating storage facilities in rural areas.
• Credit from local banks, so that crops can be grown every year.
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