Class 10 Economics Chapter 3 Case Based Questions - Understanding Economic Development

Q1: Read the source below and answer the questions that follow:

The economy is divided into three sectors based on the type of economic activities performed:

• Primary Sector: Includes activities that involve the extraction and harvesting of natural resources, such as agriculture, fishing, forestry, and mining.
• Secondary Sector: Involves manufacturing and industrial activities where raw materials are processed into finished goods, such as textile factories, steel production, and construction.
• Tertiary Sector: Provides services rather than goods, including transportation, banking, education, healthcare, and tourism.

i. Why is the primary sector also called the "agriculture and related sector"? (1 mark)
ii. What role does the tertiary sector play in supporting the primary and secondary sectors? (1 mark)
iii. Give two examples each of activities from the secondary and tertiary sectors that are essential for economic growth. (2 marks)

Ans:
i. The primary sector is called the "agriculture and related sector" because it includes activities that rely on natural resources, such as farming, dairy, fishing, and forestry, which form the base of all other economic activities.
ii. The tertiary sector supports the primary and secondary sectors by providing essential services like transportation, storage, banking, and communication, which help in the production and distribution of goods.
iii. Two examples from the secondary sector: Textile manufacturing and automobile production.
Two examples from the tertiary sector: Banking services and transportation networks.

Q2: Read the source below and answer the questions that follow:

The three economic sectors are highly interdependent. For example, farmers (primary sector) grow wheat, which is processed in a flour mill (secondary sector) and later sold in retail stores (tertiary sector). Similarly, industries depend on raw materials supplied by the primary sector and services such as transport and banking from the tertiary sector. This interdependence ensures smooth economic functioning.

i. How is the secondary sector dependent on the primary sector? (1 mark)
ii. What would happen if transport services in the tertiary sector stopped functioning? (1 mark)
iii. Explain with an example how the tertiary sector indirectly affects both the primary and secondary sectors. (2 marks)

Ans:
i. The secondary sector depends on the primary sector for raw materials, such as cotton for textile industries or iron ore for steel production.
ii. If transport services stopped functioning, goods would not reach markets, industries would not get raw materials, and farmers would struggle to sell their produce, leading to economic disruptions.
iii. The tertiary sector influences both the primary and secondary sectors through various services:

• Banking services: Banks provide loans to farmers in the primary sector and industries in the secondary sector, facilitating their operations.
• Communication services: Effective communication helps businesses coordinate trade, ensuring smooth operations between sectors.
• Transport services: Goods produced in the primary and secondary sectors require transportation to reach markets.

Q3: Read the source below and answer the questions that follow:

Over the years, the contribution of different sectors to GDP has changed. Initially, the primary sector dominated the economy, but with industrialization, the secondary sector grew rapidly. In recent years, the tertiary sector has become the largest contributor to India's GDP, due to the rise of services like IT, banking, and healthcare. However, despite this growth, employment in the primary sector remains high.

i. Why has the tertiary sector become the largest contributor to India's GDP? (1 mark)
ii. Despite its large contribution to GDP, why does the tertiary sector not employ the majority of the workforce? (1 mark)
iii. What steps can be taken to create more employment opportunities in the secondary and tertiary sectors? (2 marks)

Ans:
i. The tertiary sector has grown due to the increasing demand for services like banking, tourism, education, healthcare, and information technology.
ii. The tertiary sector does not employ the majority of the workforce because many services require skilled labor, while a large portion of India's population still depends on agriculture for livelihood.
iii. To create more employment opportunities in the secondary and tertiary sectors, consider the following steps:

• Encourage industrial growth through government incentives and improved infrastructure.
• Expand vocational training and skill development programmes to prepare workers for jobs in the service sector.
• Support small businesses and startups to stimulate job creation.
• Promote sectors like tourism and IT, which have high employment potential.

Q4: Read the source below and answer the questions that follow:

The workforce in India is divided into organised and unorganised sectors. The organised sector includes workers with job security, fixed salaries, and benefits like pensions and medical insurance (e.g., government employees, bank workers). The unorganised sector consists of workers with irregular employment, low wages, and no job security (e.g., daily wage laborers, street vendors). The government has taken steps to improve the condition of unorganised workers through schemes like MGNREGA.

i. What is the key difference between the organised and unorganised sectors? (1 mark)
ii. Why do most people in India work in the unorganised sector? (1 mark)
iii. How can the government improve working conditions in the unorganised sector? (2 marks)

Ans:
i. The key difference is that the organised sector provides job security, fixed wages, and benefits, while the unorganised sector lacks these protections.
ii. Most people work in the unorganised sector because there are not enough formal job opportunities, and many small businesses do not follow government regulations.
iii. The government can enhance working conditions in the unorganised sector by:

• Providing financial assistance and social security benefits to unorganised workers.
• Encouraging formal employment through policy reforms and labour protections.

Q5: Read the source below and answer the questions that follow:

Economic activities are classified into public and private sectors based on ownership. The public sector is controlled by the government and focuses on essential services like railways, education, and healthcare. The private sector is run by individuals or companies for profit, including industries, shopping malls, and hospitals. While both sectors are important, excessive dependence on the private sector can lead to high costs for essential services.

i. Give one example each of public sector and private sector enterprises in India. (1 mark)
ii. Why does the government run essential services like railways and healthcare? (1 mark)
iii. How can the public and private sectors work together for better economic development? (2 marks)

Ans:
i. Public sector example: Indian Railways. 
Private sector example: Reliance Industries.
ii. The government runs essential services to make them affordable for all citizens and ensure equal access, rather than prioritizing profit.
iii. The public and private sectors can collaborate effectively through:

• Encouraging Public-Private Partnerships (PPPs) in areas like infrastructure and healthcare.
• Offering government incentives to private companies for developing rural regions.

Q6: Read the source below and answer the questions that follow:

The primary sector is the backbone of the Indian economy, as a large portion of the population depends on agriculture for livelihood. However, despite its importance, the sector faces challenges like low productivity, dependence on monsoons, and lack of modern technology. The government has introduced various schemes to improve agricultural production, such as subsidies for fertilizers, irrigation projects, and crop insurance.

i. Why is the primary sector important for India’s economy? (1 mark)
ii. What are two major challenges faced by the primary sector? (1 mark)
iii. Suggest two ways to improve productivity in the primary sector. (2 marks)

Ans:
i. The primary sector is important because it provides employment to a large population and supplies raw materials for industries.
ii. Two major challenges faced by the primary sector:

• Dependence on monsoons, leading to uncertain crop production.
• Low use of modern technology, affecting productivity.

iii. Two ways to improve productivity:

• Providing better irrigation facilities to reduce dependence on rainfall.
• Encouraging the use of high-yield seeds and modern farming techniques.

Q7: Read the source below and answer the questions that follow:

The secondary sector has grown due to industrialization and urbanization. Manufacturing industries produce consumer goods, machinery, and infrastructure materials. This sector provides large-scale employment and contributes to GDP growth. However, industrial expansion also leads to pollution, deforestation, and environmental degradation.

i. What is the main role of the secondary sector in the economy? (1 mark)
ii. How does the secondary sector contribute to employment generation? (1 mark)
iii. Suggest two ways to reduce the negative environmental impact of industrial growth. (2 marks)

Ans:
i. The secondary sector processes raw materials into finished goods, supporting industrial and economic growth.
ii. It contributes to employment generation by providing jobs in manufacturing, construction, and allied industries.
iii. Two ways to reduce environmental impact:

• Adopting eco-friendly production methods and effective waste management systems.
• Encouraging the use of renewable energy sources, such as solar and wind power.

Q8: Read the source below and answer the questions that follow:

In recent years, the tertiary sector has expanded rapidly due to increasing demand for banking, IT services, healthcare, and education. Many people now work in service-based industries rather than traditional manufacturing or agriculture. However, there is a wide gap between high-paying skilled jobs and low-wage informal sector jobs in this sector.

i. Why has the tertiary sector grown faster than the primary and secondary sectors? (1 mark)
ii. What are the two types of jobs available in the tertiary sector? (1 mark)
iii. How can the government improve the working conditions of low-wage workers in the tertiary sector? (2 marks)

Ans:
i. The tertiary sector has grown due to technological advancements, increasing demand for services, and globalization.
ii. Two types of jobs in the tertiary sector:

• High-paying skilled jobs (e.g., IT professionals, financial analysts).
• Low-wage informal jobs (e.g., domestic helpers, street vendors).

iii. The government can improve working conditions by:

• Providing social security benefits like health insurance and pensions for informal workers.
• Introducing minimum wage laws and better working conditions.

Q9: Read the source below and answer the questions that follow:

In the primary sector, many people are engaged in farming, but often their contribution is not needed. This leads to disguised unemployment, where more people are working than required, resulting in low productivity. If some workers shift to other sectors, farm output would remain the same, and employment could be more productive elsewhere.

i. What is disguised unemployment? (1 mark)
ii. How does disguised unemployment affect agricultural productivity? (1 mark)
iii. Suggest two solutions to reduce disguised unemployment in India. (2 marks)

Ans:
i. Disguised unemployment occurs when more workers are engaged in a job than necessary, leading to no increase in output.
ii. It affects productivity because many people work inefficiently, and resources are not used optimally.
iii. Two solutions:

• Providing vocational training to workers for jobs in secondary and tertiary sectors.
• Encouraging agro-based industries to create alternative employment opportunities.

Q10: Read the source below and answer the questions that follow:

The government plays a crucial role in employment generation by launching schemes like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), which guarantees 100 days of wage employment to rural households. Public investment in infrastructure, education, and healthcare also helps create more jobs.

i. What is the main objective of the MGNREGA scheme? (1 mark)
ii. How does public investment in infrastructure create employment? (1 mark)
iii. Suggest two additional ways the government can create more job opportunities. (2 marks)

Ans:
i. The main objective of MGNREGA is to provide 100 days of guaranteed wage employment to rural workers, ensuring livelihood security.
ii. Public investment in infrastructure creates employment by generating jobs in construction, transportation, and maintenance of public facilities.
iii. Two additional ways the government can create jobs:

• Encouraging skill development programs for youth to enter new industries.
• Promoting small-scale industries and startups with financial support.