Class 10 Economics Chapter 2 Previous Year Questions - Sectors of the Indian Economy

Ans: The public sector plays a vital role in the country's economy by fulfilling various  functions:
(1) Developing and investing in infrastructure, such as ports, roads, bridges, and telecommunications, is one of the public sector's primary responsibilities. The foundation of the economy is this infrastructure, which makes communication, trade, and commerce possible.
(2) The provision of fundamental social services including housing, healthcare, and education falls under the responsibility of the public sector.
(3) The public sector's establishment and enforcement of laws governing economic activity is another essential function. This entails keeping an eye on business activities, guaranteeing consumer safety, and preserving the sustainability of the environment.

Ans: (a)

The primary sector involves activities that extract or harvest natural resources, such as agriculture and fishing. Fishermen are part of this sector because they catch fish directly from water bodies. Therefore, option (a) is the correct match. The other pairs do not align with their respective sectors.

Ans: (a)
The primary sector includes activities that involve the extraction and cultivation of natural resources, such as farming and flower cultivation. A flower cultivator fits into this category because they grow flowers directly from the soil. Therefore, option (a) is the correct match, while the other pairs do not accurately represent their respective sectors.

Ans: (a)
Kanta works in the organized sector because she receives a regular salary and additional benefits provided by the government, such as health insurance or retirement plans. The organized sector consists of jobs with formal contracts and worker protections. Therefore, option (a) is the correct answer.

Ans: (a)
The National Statistical Office (NSO) is responsible for collecting and providing data about various aspects of the economy, including employment in India. It conducts surveys and research to help understand employment trends and statistics. Therefore, option (a) is the correct answer.

Ans: (c)
The tertiary sector contributes the highest to India's Gross Domestic Product (GDP). This sector includes services such as retail, healthcare, education, and information technology, which have grown significantly and now represent a large part of the economy. Therefore, option (c) is the correct answer.

Ans: Employment conditions under :
(a) Organised sector 
(i) Rules and regulations (labour laws) as proposed by the government are followed.
(ii) Formal processes and procedures are followed.
(iii) Security of employment to workers, who are employed for full time is ensured.
(iv) Working hours fixed, overtime is paid for extra hours of work.
(v) Workers get benefits like provident fund, gratuity, medical benefits, paid leave, etc. 

(b) Unorganised sector 
(i) Outside the control of the government laws.
(ii) Small and scattered units.
(iii) Rules and regulations are not followed
(iv) Low-paid and irregular jobs
(v) High degree of insecurity.
(vi) No provision for overtime, paid leave, holidays, etc.

Ans: Tertiary sector is different from other sectors because:
(i) The activities of the tertiary sector help in the development of secondary and primary sectors.
(ii) Tertiary sector activities do not produce goods by themselves, but they support or aid the process of production in other sectors.
(iii) To help in the trade or production, credit would be required, hence the need to borrow from banks would arise, and communication through phones or letters are  also a necessity to complete the processes involved in production and trade.
(iv) After production, the need to store the produce in go downs or cold storage facilities will also arise.

Ans: Tertiary sector is becoming important in India because: 
(1) Several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc., are required with the world globalising and advancing. This imparts significance to the sector. 
(2) The development of agriculture and industry leads to the development of services. Greater the development, greater the progress of this sector. 
(3) Over the past decade, new services based on information and communication technology have become important and essential.

Ans: There is a need to protect workers in the Unorganised sector because: 
(1) Jobs in this sector are low-paid and not regular. There is no fixed provision of medical leaves, overtime, paid holidays etc. 
(2) Employment is not secure. People can be asked to leave anytime without any notice. 
(3) There is immense competition in the unorganised sector despite the low growth it offers

Ans: (c)
Tertiary sector generates services rather than goods. They promote primary and secondary sectors by providing expertise, finance, transportation, advertisement, etc.

Ans: (a)
It has been noted from the history of many newly developed countries that at initial stages of development, primary sector was the most important sector of economic activity.

Ans: (b)
Manufacturing industries are secondary activities. They change natural products into other forms.

Ans: (d)
Products obtained by exploiting natural resources, such as agriculture, fishing, and mining, fall under the primary sector. This sector involves activities that directly use natural resources to produce goods. Therefore, option (d) is the correct answer.

Ans: (a)
Laxmi works on agricultural land. It is a primary sector.

Ans: (b)
A farmer cultivating 2 to 4 hectare is a medium farmer.

Ans: (b)
More people are engaged in agriculture than needed. It is underemployment.

Ans: (c)
The construction of dams and canals requires a lot of unskilled laborers to help with physical tasks like digging, transporting materials, and building structures. This creates employment opportunities for many people in rural areas who may not have other job options, making option (c) the correct answer.

Ans: (c)
Increasing irrigation has changed the cropping pattern of many regions with farmers shifting to water intensive and commercial crops.

Ans: (d)
Canals are constructed and maintained by the government. It comes under Public Sector.

Ans: (a)
Mining is classified under the primary sector because it involves extracting natural resources directly from the earth. The primary sector includes activities that utilize natural resources, such as agriculture, fishing, and mining. Therefore, option (a) is the correct answer, while the other options belong to the secondary and tertiary sectors.

Ans: People enjoy working in the organised sector as there is a proper and systematic way to get the work done from the employees.
Benefits of organised sector: 
(i) People enjoy security of employment.
(ii) Work for fixed hours.
(iii) If they work more, they get overtime allowances.
(iv) They have registered by the government and have to follow its rules and regulations which are given in various laws such as Factories Act, Shop Act etc.
Examples are Reliance Industries Limited, Tata Motors etc.

Ans: Transport, storage, communication, banking and trade are some examples of tertiary sector. Since, these activities generate services rather than goods, they promote primary and secondary sector by:
(i) Providing expertise and finance
(ii) They are helpful for advertisement and marketing.
(iii) Provide transportation and communication facilities.

Ans: Primary sector was the important sector of economic activity at the initial stages of development.
(i) It is concerned with the extraction of raw materials i.e., mining, fishing, farming, etc.
(ii) It gives employment to the large population.
(iii) It enables the workers to leave the agricultural sector and move to other secondary and tertiary sectors.

Ans:  Underemployment is a situation where there is under-utilisation of labour, either they are not in job where they can use their skill or they do not get full time job. these methods may help to solve the problem of underemployment
(i) One or two members of farmers family can work in the farms of big landlord and earn wages.
(ii) More irrigated facilities can be provided to grow two or three crops in a year.
(iii) By opening processing units of agriculture production, more employment opportunities can be created.

Ans: Tertiary sector in India has been growing rapidly for a number of reasons. In the year 2013-14, the tertiary sector has emerged as the largest sector in India replacing the primary sector. The reason for the growth of the tertiary sector are as follows -
(a) Basic services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, requires a large number of people to be engaged in these tertiary sector activities. "
(b) The growth of agriculture and industry leads to the development of services such as transport, trade and storage. The demand for these services increases when the primary and secondary sectors are well developed.
(c) As the income rise certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc. We can see these changes in the big cities.

Ans: (i) 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, such as managers, lawyers, accountants, etc.
(ii) 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.
(iii) There is no alternative opportunity for them. Only a part of this sector is growing in importance.

Ans: Workers can be saved from unorganised sector possible in the following way:
(i) Social security to workers.
(ii) Support from Labour Ministry
(iii) Provide support for the conversion of unorganised sector to organised sector.

Ans: (b)
The Assertion (A) is true because the Government of India does buy wheat and rice from farmers at a fair price to ensure food security. The Reason (R) is also true as the public sector plays a significant role in economic development by providing services and stability. However, the reason does not explain why the government buys wheat and rice; they are related but not directly connected. Therefore, option (b) is the correct answer.

Ans: Public sector is controlled by the Government whereas private sector is under the control of an individual or a firm.

Ans: Reforms to improve public sector:
(i) More investment by Government at grass root level.
(ii) More banks and cooperatives.
(iii) Infrastructural development at grass root level.
(iv) Health and education profits at grass root level.

Ans: GDP in India is calculated by adding the total value of the final goods and services produced by all three sectors. Only final goods and services are counted to get the final value.

Ans: When the economic activity depends mainly on exploitation of natural resource, then that activity comes under the primary sector. Agriculture and its related activities are the primary sectors of the economy, so farming is an example of primary sector activity. While the activities in which natural products are changed into other forms comes under secondary sector.

Ans: The features of the public sector can be enumerated as follows:
(i) Some projects need spending of large sums of money, which is beyond the capacity of the private sector. Collecting money from thousands of people who use these facilities is not easy. This is seen in various public conveniences.
(ii) In certain cases of national security such as the defense forces, only the public sector can be trusted. Large scale operations of governing the banks and management of money circulation can only be done by the public sector.
(iii) Even if they do provide these things the private sector is more likely to charge a high rate for their use. Examples are construction of roads, bridges, railways, harbors, metro rail, providing irrigation through dams etc.
(iv) Only the governments can undertake such heavy spending and ensure that these facilities are available for everyone. There are some activities, which the government has to support.
(v) In some cases, the government subsidizes the goods that are meant for the poor. This includes cooking gas, fertilisers, irrigation, electricity in rural sector support purchase price of farm produce, primary education and medical care etc.

Ans: Tertiary sector in India has been growing rapidly for a number of reasons:
(i) 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.
(ii) The development of agriculture and industry leads to the development of services, such as trade, transport, storage, etc. Greater the development of the primary and secondary sectors, more would be the demand for such services.
(iii) As income levels rise, certain sections of people start demanding many more services, such as eating out, tourism, shopping, private hospitals; private schools, professional at training, etc. This change was quite sharp in cities, especially in big cities.
(iv) Over the past decade or so, certain new services, such as those based on information and communication technology have become important and essential.
(v) Government policy of privatisation has also led to growth of this sector.
(vi) A large number of workers are engaged in services, such as small shopkeepers, repair persons, transport persons, etc.
(vii) However, the entire sector has not grown. Large numbers of people engaged as construction workers, maids, peons, small shopkeepers, etc. do not find any change in their life.

Ans: The public sector contributes to the economic development of a nation in the following ways:

• It promotes rapid economic development through the creation and expansion of infrastructure in underdeveloped areas.
• It creates employment opportunities through various projects.
• It generates financial resources for economic and social development.
• It ensures balanced regional development.
• It encourages the development of small, medium, and cottage industries as ancillaries.
• It ensures the easy availability of goods at moderate rates.
• It contributes to community development by providing health and educational services.

Ans: (d)
(i) The Tertiary Sector (or Service Sector) includes professions that provide services rather than goods. This sector supports the primary and secondary sectors by offering services like education, healthcare, banking, transportation, and communication.
(ii) A teacher provides an educational service, which is part of the tertiary sector.
The other options belong to the Primary Sector:
(a) Fisherman: Engaged in fishing, which is part of the primary sector as it involves direct extraction of natural resources.
(b) Farmer: Involved in agriculture, which is also part of the primary sector.
(c) Woodcutter: Involved in forestry, another primary sector activity that involves resource extraction.
Therefore, the correct answer is (d) Teacher.

Ans: (a)
Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector. This statement is true because, in calculating the total production, only the value of final goods is counted to avoid double-counting.
Reason (R): The value of final goods already includes the value of all the intermediate goods. This statement is also true. When calculating GDP, the value of intermediate goods (which are used to produce final goods) is not counted separately, as it is already included in the price of the final product.
Since (R) provides the correct explanation of (A), the correct answer is (a) Both (A) and (R) are true and (R) is the correct explanation of (A).

Ans: More employment can be generated in the agriculture sector alone in the following ways: 
(1) Increase in irrigation facilities: Without irrigation, only a single crop can be grown in most agricultural fields, which means less working opportunities, but if irrigation is provided, two or three crops can be grown on the same field. So, more people will be employed. 
(2) Provide basic facilities: Government should provide basic infrastructure in agriculture related facilities such as transportation (building of roads), irrigation, banking to ease the work of farmers. Subsidies can be provided. Dams and storages can be built. 
(3) Provide them easy loan: If people are provided easy bank loans, then they could start small businesses, which will make them self-dependent.

Ans: Employment conditions in the unorganised sector: 
(1) There are rules and regulations but these are not followed. 
(2) Jobs are low paid and not secured. 
(3) No provisions for over time, holidays, sick leaves etc. 
(4) People can be asked to leave without any reason. 
(5) They are largely outside the control of government.

Ans: When goods are produced by exploiting the natural resources, it is an activity of the primary sector.

Ans: Tertiary sector is the sector which provides services, such as banking, selling, transportation, etc. These services actually help in proper functioning of the primary and secondary sectors.

Ans: A worker in the organized sector is assured of regular work, regular salary, and other benefits.

Ans: Underemployment refers to the condition in which people in the labor force are employed at less than full-time or regular jobs, or at jobs inadequate with respect to their training or economic needs.

Ans: The primary economy has undergone significant historical changes over the years. Some of these changes include:

• New technologies have brought big changes to how things are done in farming, mining, and fishing. Machines and modern tools make these jobs faster and better.
• In farming, the Green Revolution changed everything. New types of crops, better ways to water them, and using chemicals like fertilizers and pesticides meant way more food could be grown. Farming isn't just about the same old crops anymore. New kinds of plants are being grown in different places, and things like growing flowers or fancy fruits (like horticulture and floriculture) are becoming more popular. This helps get even more food and money. 
• Nowadays, there's a lot of talk about taking care of the environment. So, in the primary sector, people are thinking more about how to do things in a way that doesn't hurt the Earth. This means saving natural resources, keeping different plants and animals safe, and using methods that don't hurt the environment. 
• All these changes over time have made the primary sector better at what it does. It's more productive, cares more about the environment, and can adapt to new problems and needs.

Ans: The three sectors of the economy, namely the primary, secondary, and tertiary sectors, are distinct from each other based on the nature of their activities.
Here's an explanation of their differences:

• The primary sector deals with getting natural resources from the environment and using them. It includes stuff like farming, cutting down trees, mining, fishing, and taking care of animals. 
• The secondary sector is all about turning those raw materials from the primary sector into finished products. This includes making things like cars, buildings, and electricity. 
• The tertiary sector is focused on giving services instead of making stuff. So, things like transportation, banking, healthcare, and tourism fall under this sector. 
• Each sector depends on the others to work. The primary sector gives raw materials, the secondary sector makes them into stuff we use, and the tertiary sector helps both of them by providing services. Together, they help a country's economy grow and develop.

Ans: In the organised sector:

• Rules and regulations (labour laws) as proposed by the government are followed.
• Formal processes and procedures are followed.
• Security of employment to workers, who are employed for full time is ensured.
• Working hours fixed, overtime is paid for extra hours of work.
• Workers get benefits like provident fund, gratuity, medical benefits, paid leave, etc.

In the unorganised sector:

• Outside the control of the government laws.
• Small and scattered units.
• Rules and regulations are not followed.
• Low-paid and irregular jobs.
• High degree of insecurity.
• No provision for overtime, paid leave, holidays, etc.

Ans: Provisions of National Rural Employment Guarantee Act (NREGA), 2005 are:

• It provides 100 days assured employment every year to each rural household.
• One-third of the proposed jobs are reserved for women.
• If an applicant is not employed within 15 days he/she is entitled to a daily unemployment allowance.
• The government has to establish Central Employment Guarantee Funds and state employment guarantee funds for the implementation of the scheme.
• The scheme is to be extended to 600 districts. 

Ans: The Mahatma Gandhi National Rural Employment Guarantee Act was implemented in the year 2005.

Ans: Disguised unemployment refers to a situation where labor that is employed in a job is not actually utilized for the production of goods and services.

Ans: Underemployment happens when workers are working at less than their capabilities. The underemployment of workers is not reflected in official unemployment statistics because of the way they are compiled.

Ans: Seasonal and disguised unemployment are most prevalent in the agriculture sector (Primary sector).

Ans: Overstaffing or hidden unemployment.

Ans: The government can spend money on the development of infrastructure projects, such as construction of roads, canals, etc. The government can provide easy credit to people and encourage entrepreneurship.

Ans: As income levels rose, a certain section of the population started demanding many services like eating out, tourism, private hospitals, etc. The rise of information and communication technology can be largely attributed to improvement in telecommunication and power sectors.

Ans: The tertiary sector has gained prominence over the last thirty years.

Ans: TISCO and Reliance are owned by the private sector.

Ans: Regarding jobs in education:

• The Planning Commission estimates that nearly 20 lakh jobs can be created in the education sector alone.
• More teachers and infrastructure will be required to accommodate more children in schools.

Regarding jobs in tourism

• The Planning Commission estimates that nearly 35 lakh jobs can be created in the tourism sector.
• Regional crafts, cottage industry, and new services like IT also have the potential to generate jobs. 

Ans: To reduce unemployment, the following measures can be taken:

• Planned development by accelerating industrialization and stimulating demand for goods and services.
• Creation of more employment opportunities in rural areas by processing farm produce, promoting cooperative farming, and developing allied activities and cottage industries.
• Planning projects to eliminate seasonal unemployment and providing micro-finance and community self-help in both rural and urban areas.
• Demonstrating and promoting adaptive technology through educational programs to encourage entrepreneurial spirit.
• Launching self-employment schemes in services or small manufacturing, connected to core activities in rural/urban areas, to enable unemployed youth to start their own business or small-scale firms.

Ans: (1) Agriculture is the most labour absorbing sector because there are not many jobs created in the tertiary and the secondary sector.
(2) Farming does not require a lot of initial investment or very hard training. 
(3) Families are involved in agriculture and hence, it becomes an inherited skill. 
(4) Agricultural products have huge demand in the market and can be sold without any processing. 
(5) Disguised unemployment which involves employment of more than the required people in a job reduces the productivity of the people and their effort gets divided without earning much.