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

NCERT Solutions for Class 10 Social Science Economics Chapter 2 Sectors of the Indian Economy are provided here. With these solutions, you will learn the right way to write answers to the questions perfectly in exams. We have updated the NCERT Solutions for Class 10 Economics Chapter 2 Sectors of the Indian Economy for the current session so that you can easily score high marks in the exams. You can also download PDF of the solutions and use them whenever you are offline.

Class 10 Social Science Economics Chapter 2 NCERT Solutions

Question 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) Employment in the service sector has not increased to the same extent as production.

(ii) Workers in the tertiary sector do not produce goods.

(iii) Most of the workers in the organised sector enjoy job security.

(iv) A large proportion of labourers in India are working in the unorganised sector.

(v) Cotton is a natural product and cloth is a manufactured product.

(vi) The activities in primary, secondary and tertiary sectors are interdependent.

Question 2. Choose the most appropriate answer.

(a) The sectors are classified into public and private sector on the basis of:

(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

Answer: (iii) ownership of enterprises

Explanation: In public sector, ownership is with the government and in private sectorownership is in the hands of private individuals.

(b) 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

Explanation: Primary sector forms a base for all the products we subsequently make and wetake the raw material from natural sources.

(c) 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

Explanation: Sum of production in the three sectors is called GDP.

(d) In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 per cent

Answer: (iii) between 50 per cent to 60 per cent

Explanation: The tertiary sector has emerged as the largest producing sector in Indiareplacing the primary sector.

Question 3. Match the following:

Problems faced by farming sectorSome 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 sectorSome 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

Question 4. Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

Answer: Tourist Guide is the odd one out because he or she is appointed by the Government Department but tailor, dhobi and potter own their private work.

(ii) Teacher, doctor, vegetable vendor, lawyer

Answer: The Vegetable vendor is the odd one out because he works in the primary sector, while jobs of teacher, lawyer and doctor come under the tertiary sector.

(iii) Postman, cobbler, soldier, police constable

Answer: Cobbler is the odd one out because he works in the private sector while the postman, soldier and police constable work for the public sector or the organised sector.

(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

Answer: Jet Airways is the odd one out because it is owned by a private company and MTNL, Indian Railways, Air India and All India Radio are owned by the Government of India

Question 5. A research scholar looked at the working people in the city of Surat and found the following:

Place of WorkNature of employmentPercentage of working people
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in marketplaces with a 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 WorkNature of employmentPercentage of working  people
In offices and factories registered with the governmentOrganised15
Own shops, office, clinics in marketplaces with a formal licenseOrganised15
People working on the street, construction workers, domestic workersUnorganised20
Working in small workshops usually not registered with the governmentUnorganised50

The percentage of workers in the unorganised sector in this city is 70%. We find many organised sector enterprises in the unorganised sector because they want to evade taxes and refuse to follow the laws protecting the labourers.

Question 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 as it helps to classify the different occupations that are taken up by the people in the country and gives information on the contribution of different sectors to the growth of the country. It also helps in ascertaining as to which sector of economic activity contributes more or less to the country’s GDP and per capita income.

Question 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: Employment and GDP are two of the most important factors in the development of a country. Employment and GDP are used to calculate the overall productivity and National income of a country. If a country has a high employment rate, its GDP, National Income and per capita income will automatically increase. Hence, these are the two things which have been given major emphasis in this chapter. Other issues which should be examined are as follows:

  1. Health care facilities
  2. Education
  3. Poverty
  4. Food Production
  5. Nourishment

Question 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: Some Samples of Work People Do and Their Classification

Nature of workNature of ActivitySector
Bank ClerkTertiaryOrganized
Freelance CartoonistTertiaryUnorganized
Construction WorkerSecondaryUnorganized
Doctor in AIIMSTertiaryOrganized
DTC Bus DriverTertiaryOrganized
FarmerPrimaryUnorganized
Guest House ReceptionistTertiaryUnorganized
Mine WorkerPrimaryUnorganized
Own Tailoring ShopTertiaryUnorganized
Public Sector Factory SupervisorSecondaryOrganized

Question 9. How is the tertiary sector different from other sectors? Illustrate with a few examples.

Answer: The tertiary sector different from the primary and secondary sectors this sector does not produce goods by itself but the other two sectors produce goods. This sector help in the development of the primary and secondary sectors. The activities under the tertiary sector are an aid or support for the production process. For example, transport, communication, storage, banking, insurance, trade activities etc. Similarly, doctors, teachers, lawyers, tailor, etc., come under the tertiary sector as they provide services rather than material goods. This is why this sector is also termed as the service sector.

Question 10. What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer: The situation of underemployment, where people are apparently working but all of them are made to work less than their potential is called disguised unemployment. In this case, the person considers himself employed but is actually not working.

In rural areas, where agriculture is the main source of income, this kind of unemployment can be seen often. If a piece of land requires only three people to work on it and instead five people are working on it, then the two extra people are said to be in a situation of disguised unemployment.

In urban areas, disguised unemployment is seen when painters, plumbers, electricians are unable to find work on a daily basis and work way less than their potential.

Question 11. Distinguish between open unemployment and disguised unemployment.

Answer:

Open UnemploymentDisguised unemployment
When a country’s labour force does 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 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.
This kind of unemployment exists due to lack of resources.The absence of alternative employment opportunities leads to this situation.

Question 12. “Tertiary sector is not playing any significant role in the development of

the Indian economy.” Do you agree? Give reasons in support of your answer.

Answer: No, I do not agree with the statement that tertiary sector is not playing any significant role in the development of Indian economy. Over the last four decades (1970 -2010), tertiary sector has emerged as the largest producing sector. The growth in the service sector can be attributed to various factors such as:

  • Need for basic services like health, education, security, finance etc.
  • Introduction of new services like IT.
  • Development of primary and secondary activities.
  • Increase demand for services due to increase in per capita income.

The GDP share of the tertiary sector has grown from around 40% in 1973 to more than 50% in 2003.

Question 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 or the self employed. e.g. teachers, doctors, barbers, cobblers lawyers etc. They may be termed as ancillary workers mean those who give services to the primary service providers.

Question 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:

  1. There is no fixed number of working hours. The workers normally work 10 – 12 hours without paid overtime.
  2. They do not get other allowances apart fro the daily wages.
  3. Government rules and regulations to protect the labourers are not followed there.
  4. There is no job security.
  5. 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.
  6. Being very poor they are always heavily in debt. So, they can be easily made to accept lower wages.

Question 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: It includes the enterprises registered under the Government of India, who have an employee-friendly environment and are provided with various facilities including high wages.

Unorganized Sector: It includes the small and scattered units which largely outside the control of the government. There are rules and regulations but these are not followed in this sector. Jobs here are low-paid and often not regular.

Question 16. Compare the employment conditions prevailing in the organised and unorganized sectors.

Answer: In the organised sector, the employees are given higher wages, medical facilities, a healthy working environment and their jobs are permanent. They are not liable to look for a new source of income each day.

In the unorganised sector, the wages are low, the employees are exploited, no extra income for extra time is given, no medical facilities are provided and the work environment is unhealthy.

Question 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.

Question 18. Using examples from your area compare and contrast that activities and functions of private and public sectors.

Answer: Some Samples of Work People Do and Their Classification

Nature of workNature of ActivitySector
Bank ClerkTertiaryOrganized
Freelance CartoonistTertiaryUnorganized
Construction WorkerSecondaryUnorganized
Doctor in AIIMSTertiaryOrganized
DTC Bus DriverTertiaryOrganized
FarmerPrimaryUnorganized
Guest House ReceptionistTertiaryUnorganized
Mine WorkerPrimaryUnorganized
Own Tailoring ShopTertiaryUnorganized
Public Sector Factory SupervisorSecondaryOrganized

Question 19. Discuss and fill the following table giving one example each from your area.

 Well-managed organisationBadly-managed organisation
Public sector  
Private sector  

Answer:

 Well-managed organisationBadly-managed organisation
Public sectorDelhi Metro Rail CorporationMilk Co-operative society
Private sectorReliance MobileSatyam

Question 20. Give a few examples of public sector activities and explain why the government has taken them up.

Answer: The public sector activities are set for the betterment of the public itself. The reason the government has taken up the public sector is so that proper facilities can be provided to the people of the country. Banks, transport, irrigation, electricity, water and all the basic things that are necessary for people, come under the public sector. Providing these facilities to its citizens is the responsibility of the Government.

Question 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 anation:

  • It promotes rapid economic development through the creation and expansion of infrastructure.
  • It creates employment opportunities.
  • It generates financial resources for development.
  • It ensures equality of income and wealth, 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.

Question 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 a 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 a clean environment. Eg., Working in mining, chemical industries is hazardous.

Health: Leave not granted in case of sickness. Medical facilities are not offered, E.g. Construction workers.

Question 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 SectorUnorganised SectorTotal
No. of workers4,00,00011,00,00015,00,000
Income (Rs)32,000 million28,000 million60,000 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, the government should introduce some incentives so that

 more industries could be opened up in the organized sector.

Question 24. The following table gives the GDP in Rupees (Crores) by the three sectors:

YearPrimarySecondaryTertiary
195080,00019,00039,000
20118,65,00013,70,00030,10,000

(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,
Share of primary sector = 22.22%
Share of secondary sector = 20.73%
Share of tertiary sector = 57.04%

In 2013,
Share of primary sector = 13.94%
Share of secondary sector = 18.70%
Share of tertiary sector = 67.36%

(ii)

NCERT Solutions for Class 10 Economics Chapter 2 Sectors of the Indian Economy image 1

(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.

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