Please see Sectors of The Indian Economy Exam Questions Class 10 Social Science below. These important questions with solutions have been prepared based on the latest examination guidelines and syllabus issued by CBSE, NCERT, and KVS. We have provided Class 10 Social Science Questions and answers for all chapters in your NCERT Book for Class 10 Social Science. These solved problems for Sectors of The Indian Economy in Class 10 Social Science will help you to score more marks in upcoming examinations.
Exam Questions Sectors of The Indian Economy Class 10 Social Science
Objective Type Questions
Question. Production of a commodity, mostly through the natural process, is an activity in sector.
(d) information technology
Answer : (a) primary
Question. Which of the following is a public sector enterprise ?
(b) Reliance Industries
(c) Bajaj Auto
Answer : (d) SAIL
Question. Which one of the following occupations suffers from underemployment ?
(b) Casual labour
(c) Bank employee
(d) Police constable
Answer : (b) Casual labour
Question. GDP is the total value of produced during a particular year.
(a) all goods and services
(b) all final goods and services
(c) all intermediate goods and services
(d) all intermediate and final goods and services
Answer : (b) all final goods and services
Question. In India, the lowest contribution to employment is generated by –
(d) industry and service combined
Answer : (c) service
Question. In terms of GDP the share of tertiary sector in 2013-14 is –
(a) between 20 to 30 per cent
(b) between 30 to 40 per cent
(c) between 50 to 60 per cent
(d) between 60 to 70 per cent
Answer : (d) between 60 to 70 per cent
Question. The sector which has emerged as the largest producing sector in India is –
(a) primary sector
(b) secondary sector
(c) tertiary sector
(d) None of the above
Answer : (c) tertiary sector
Question. Economic Survey is published by the –
(a) National Sample Survey Organisation
(b) Ministry of Statistics and Planning
(c) Ministry of Finance
(d) Ministry of Commerce and Trade
Answer : (c) Ministry of Finance
Question.The sectors are classified into public and private sector on the basis of–
(a) employment conditions
(b) the nature of economic activity
(c) ownership of enterprises
(d) number of workers employed in the enterprise
Answer : (c) ownership of enterprises
Question. Which of the following persons works in the unorganized sector of the economy ?
(a) A teacher employed in a government school
(b) An engineer in Maruti Suzuki Ltd.
(c) A domestic helper in a rich family
(d) A manager of a nationalized bank
Answer : (c) A domestic helper in a rich family
Question. Which of the following is an example of private sector enterprise ?
(a) Reliance Industries
(b) Post office
Answer : (a) Reliance Industries
Question. In our country, NREGA 2005 aims to provide to all those who are able to, and are willing to work, a minimum of –
(a) 200 days of employment in a year.
(b) 100 days of employment in a year.
(c) 300 days of employment in a year.
(d) 365 days of employment in a year.
Answer : (b) 100 days of employment in a year.
Question. The share of the private sector in India’s GDP presently has been estimated at about –
(a) 30 per cent
(b) 45 per cent
(c) 75 per cent
(d) 85 per cent
Answer : (c) 75 per cent
Question. Which sector of economy is the largest employer ?
(a) Industrial sector
(b) Agriculture sector
(c) Service sector
(d) None of the above
Answer : (c) Service sector
Short Answer Type Questions
Question. Explain the meaning of tertiary sector. Mention any four economic activities of this sector.
Answer : Tertiary Sector: These are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a good but they are an aid or support for the production process.
Four economic activities of this sector are— banking, transport, storage, communication, etc.
Question. How is tertiary sector different from the other two sectors of economic activities? Explain.
Answer : Tertiary sector is different from the other two sectors because:
(i) It does not provide or produce goods.
(ii) It provides services such as transport, I.T., communications, etc.
(iii) It is the backbone of all the sectors.
(iv) More the primary and secondary sectors develop, more is the requirement of services.
Question. 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 :
(i) If more dams are built and canal water is provided to all the small farmers, a lot of employment can be generated in the agricultural sector.
(ii) Providing cheap credit facilities and crop insurance can result in more employment.
(iii) More money should be spent on transport and storage, because then more people can be employed.
(iv) The government/banks can provide a loan at cheap rates to improve irrigational facilities.
(v) Technical training, vocational guidance to unemployed youth for self-employment.
Question. 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 :
(i) Enough jobs have not been created in the secondary and tertiary sector.
(ii) In the tertiary sector, though the production has risen almost 11 times, but employment has grown only 3 times.
(iii) Even though industrial output went up by eight times during the period, employment in the industry sector went up by only 2.5 times.
Question. What is GDP? Explain with example the method of calculating Gross Domestic Product.
Explain the term GDP Why are only ‘final goods and services’
Answer : GDP 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 GDP because :
(i) The value of final goods already includes the value of all intermediate goods.
(ii) 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.
Question. Explain the interdependence of all the three economic sectors giving examples from transportation system.
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 :
(i) When we use natural resources, it is an activity of the primary sector. In the transportation sector, iron is the main raw material and the primary sector is concerned with the extraction of natural resources like iron. The extraction is supported by the financing and information and technological institutions.
(ii) The natural resources are changed into other forms through the process of manufacturing, i.e., manufacturing sector uses natural products as its raw materials. It is through the secondary sector that the natural resource, i.e. iron is changed into other forms through manufacturing. Manufacturing needs the support of the service sector in the form of engineers, electricians, etc. to change iron into iron sheets and then in vehicles.
(iii) All services, that enable us to pursue primary and secondary activities are listed as tertiary activities. Once manufactured, the vehicles are sold in the market by various agencies. These vehicles help all the sectors to carry out their processes.
Question. Why is NREGA also called the right to work? Explain.
Explain the role of NREGA in creating employment for the people in India.
Why is NREGA also called the “Right to Work”? Mention any three reasons for it.
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 :
(i) It has been implemented in 200 poorest of the poor districts of India.
(ii) NREGA guarantees 100 days of assured work to the people who are able and in need of work.
(iii) If the government fails to provide work, it will provide unemployment allowances to the people.
(iv) One-third of the jobs are reserved for women.
Question. How would income and employment increase if farmers are provided with loan, irrigation and transportation facilities?
Answer : (i) Loan provided can be used to construct a well or to buy a better quality of seeds and pesticides.
(ii) Irrigation will help to have a second crop after the first one, even in the absence of monsoon.
(iii) Transportation facility will facilitate taking their produce to the market to sell.
Question. Why is agriculture an activity of unorganized sector in India? Explain.
Agriculture is an unorganized sector activity in India. Do you agree with this statement? Justify your answer with suitable examples.
Answer : In agricultural activities, people are exploited like landless labourers.
(i) Their income level is low.
(ii) There is no job security.
(iii) Agriculture is seasonal in nature and there is no fixed pay.
(iv) No other benefits such as pension, medical facility, paid leave, provident fund, safe environment, etc., are available.
Question. How is tertiary sector different from other sectors? Give examples.
Answer : Tertiary sector is different from other sectors in the following ways :
The activities of the tertiary sector are different as these are the activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce any good but they provide an aid or support for the production process. For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains and then sold in wholesale and retail shops. We also may need to talk to others over the telephone or send letters (communication) or borrow money from banks (banking) to enhance production and trade. Transport, storage, communication, banking and trade are some examples of tertiary activities. Since these activities generate services rather than goods, the tertiary sector is also called the service sector.
Question. Classify the sectors of economy on the basis of ownership.
How are the economic activities classified on the basis of ownership? Explain with suitable examples.
Differentiate between public and private sectors.
Differentiate between the public and private sectors in an economy with examples.
Answer : Public Sector:
(i) The government owns most of the assets and provides all the services.
(ii) The purpose of the public sector is not to earn profits. Government raises money through taxes to meet expenses on the services rendered by it.
(iii) Railways and post office are examples of the public sector.
(i) Ownership of assets and delivery of services are in the hands of private individuals or companies.
(ii) Activities in the private sector are guided by the motive to earn a profit. To obtain such services, we have to pay money to these individuals and companies.
(iii) Tata Iron and Steel Company (TISCO) or Reliance Industries Ltd.(RIL) are examples of private sector.
Question. Why do people prefer to work in organised sector? Explain.
Answer : Advantages of organised sector :
(i) People enjoy security of employment.
(ii) Work for fixed hours.
(iii) It they work more, they get overtime allowances.
(iv) Paid leaves, payment during holidays, medical benefits, safe working environment and pension after retirement.
Question. Explain the problem of undere mployment in the service sector in urban areas with examples.
Answer : In urban areas, there are thousands of casual workers in the service sector who search daily employment. For example, Petty workers, painters, street vendors, rickshaw pullers, etc, who are underemployed because they do not have better work opportunities.
Question. Why is the tertiary sector becoming more important in India? Explain by giving any three reasons.
Answer : (i) In any country, several basic services like transport, bank, insurance, educational institutions, etc., are required and the government has to take responsibility for the provision of these services.
(ii) The development of agriculture and industry led to the development of services, such as transport, trade, storage, etc.
(iii) As income level rises, certain sections of people started demanding many services like eating out, tourism, private hospitals, etc.
(iv) Certain new services such as those based on information and communication technology have become important and essential.
(v) Greater the development of the primary and secondary sectors, more would be the demand for such services.
Question. Why is there an urgent need to protect workers in the unorganised sector? Explain.
Answer : (i) They are paid low salaries.
(ii) Their jobs are not secure.
(iii) They have no retirement and medical benefits.
(iv) They are often exploited.
Question. How does service sector in India provide different kinds of services? Explain.
Explain how does the public sector contribute to the economic development of a nation?
How does public sector contribute to the economic development to the nation ? Explain.
Answer : Contribution of Public Sector to Economic Development:
(i) In the public sector, the government owns most of the assets and provides all the services.
(ii) The purpose of the public sector is not just to earn profits, but also to provide facilities to the public in different ways.
(iii) There are several things needed by society as a whole, some of these need spending large sums of money which is beyond the capacity of the private sector and so they are provided by public sector.
(iv) The government supports and encourages industrial activities providing affordable electricity. In the same way, to promote agricultural activities, government purchases their products on MSP and provide a subsidy for the poor on these products.
Question. What are the differences in the employment conditions between organised and unorganized sectors of the economy?
In what three ways is organised sector better than unorganized sector? Explain.
Distinguish the service conditions of organised sector with that of unorganized sector.
Answer : Service conditions of Organised and Unorganized Sectors –
(i) Organised sector is registered by the government whereas, the unorganized sector is largely outside the control of the government.
(ii) In organised sector, the workers enjoy the security of employment, whereas in unorganized sector, jobs are insecure, low paid and irregular.
(ii) In organised sector, the workers enjoy the security of employment, whereas in unorganized sector, jobs are insecure, low paid and irregular.
(iii) In organised sector, the numbers of working hours are fixed, whereas in unorganized sector, the numbers of working hours are not fixed.
(iv) In organised sector, workers get several benefits such as paid leaves, payment during holidays, provident fund etc., whereas in unorganized sector, such facilities are not available.
Question. How can the workers in t he unorganized sector be protected? Explain.
Answer : In the unorganized sector, mostly landless agricultural labourers, small and marginal farmers, and artisans are included. These workers can be protected in the following ways:
(i) Farmers need to be supported through the adequate facility for timely delivery of seeds, agricultural inputs, credit, storage and marketing outlets.
(ii) In urban areas, casual workers need government support for procuring raw material.
(iii) Small scale industries also need support for procuring raw material and marketing of the goods.
Question. Describe the contribution of three sectors in Indian economy.
Answer : (i) All the three sectors–primary, secondary and tertiary-of the economy are interdependent.
(ii) The various production activities in the three sectors produce a very large number of goods and services.
(iii) The three sectors have a large number of people working in them to produce the goods and services.
Question. State the objectives of NREGA 2005.
Explain the objectives of implementing the MGNREGA 2005.
Explain the objectives of Mahatma Gandhi National Rural Employment Guarantee Act 2005.
What has been the role of MGNREGA in creating employment for the people in India?
Answer : Objectives of implementing MGNREGA 2005 :
(i) This scheme targets the Scheduled Castes, Scheduled Tribes and the poor women, who suffer from poverty. To give employment opportunities to the people who live in rural areas.
(ii) To raise the standard of living of the people.
(iii) To implement the right to work.
(iv) Under this scheme, the Gram Panchayat after proper verification will register households, and issue job cards to registered households. The job card is the legal document that entitles a person to ask for work under the Act and to get work within 15 days of the demand for work, failing which an unemployment allowance would be payable.
Question. “All of the service sector is not growing equally well in India.” Justify the statement with three arguments.
Service sector in India employs two types of people. Explain by giving suitable examples.
Answer : (i) Service sector in India employs many different kinds of people. However, there are a limited number of services that employ highly skilled and educated workers, such as managers, lawyers, accountants, etc.
(ii) Also, 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 reality.
Question. Classify the economic sectors on the basis of nature of activities. Mention the main feature of each.
Explain the three sectors of economic activities with the help of examples.
Explain the primary, secondary and tertiary sectors by giving examples of each.
How are the three sector of the economy different from each other? Explain.
Answer : Classification of economic sectors on the basis of nature of activities is as follows:
(i) Primary sector: When we produce goods by utilizing natural resources, it is an activity of the primary sector, such as agriculture, dairy farming, fishing, forestry.
(ii) 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.
(iii) Tertiary sector: It helps in the development of the primary and secondary sectors. They provide an aid or support for the production process. Transport, storage, communication, banking, trade are some examples of tertiary activities.
Long Answer Type Questions
Question. There has been a big change in the three sectors of economic activities, but a similar shift has not taken place in the share of employment. Explain the above statement on the basis of facts.
Answer : (i) Industrial output has increased by 8 times but employment in the sector has increased only by 2-5 times.
(ii) In the tertiary sector, the production of services rose by 11 times, but employment in the services rose only by 3 times.
(iii) More than half of the workers in the country are working in the primary sector, producing only one-quarter of the goods.
(iv) Secondary and tertiary sectors produce three– fourths of the produce, whereas they only employ half of the country’s workers.
(v) Primary sector has disguised unemployment, whereas workers in secondary and tertiary sectors work overtime.
Question. Why is agriculture the most labour absorbing sector in India? How does disguised unemployment make it worse? Explain with an example.
Answer : (i) Agriculture is the most labour absorbing sector in India because the secondary and tertiary sectors have still failed to provide more employment opportunities to a majority of the Indian people, so the people are forced to engage themselves in agriculture.
(ii) Disguised unemployment is 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.
(iii) For example, A farmer who has a land of 3 hectare requires 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 withdrawn from the job, the total production will not fall. Therefore, 5 persons will come under the category of disguised unemployment.
Question. “The declining share of agriculture in the Gross Domestic Product (GDP) is a matter of serious concern in India”. Support the statement with any five reasons.
Answer : (i) Indian farmers are facing challenge from international competition.
(ii) Government is reducing investment in agricultural sector, especially irrigation sector.
(iii) Subsidy in fertilizers has decreased, leading to a rise in cost of production.
(iv) Reduction in import duties on agricultural products.
(v) Farmers are withdrawing their investment from agriculture, causing a downfall in the employment in agriculture.
Question. How are the three sectors of the economy different from each other? Explain.
Answer : Primary Sector : Activities undertaken by using natural resources, e.g., forestry, agriculture, fishing, etc.
Secondary Sector : Activities include various manufacturing activities and add utility to primary sector, e.g., Cotton cloths, iron ore steel, etc.
Tertiary Sector : Includes all such activities which support primary and secondary sector by providing services, e.g., transportation, etc.
Question. “Agriculture had been the backbone of the Indian economy. But the declining share of agriculture in the GDP is now a matter of serious concern.” Explain the meaning of this statement.
Answer : Agriculture is the backbone of the Indian economy because :
(i) In India, about 63% people were engaged in agricultural sector in 2001.
(ii) Share in GDP was more than 40% in 1973.
(iii) Raw material for secondary sectors is mostly supplied by agriculture. But now, the share of agriculture is declining in the GDP year by year. So, it is a matter of serious concern for all.
(iv) Share of agriculture in the GDP has declined from 44% to 24% during 1973 to 2003.
(v) The primary sector continues to be the largest employer even in 2000 but the production has not increased by this rate.
Question. Explain why service sector is gaining more importance in the global economy.
Explain any five reasons for the growth of service sector in India.
Why is tertiary sector becoming the most important sector in India? Give four reasons.
Evaluate the rising importance of tertiary sector over the years.
Explain reasons for the rising importance of the tertiary sector in India.
How far is it correct to say that in recent past, India has experienced some significant changes in the contribution to GDP by the service sector? Explain.
Why is the tertiary sector growing so rapidly in India? Explain it with four reasons.
Answer : Tertiary sector in India has been growing rapidly for a number of reasons :
(i) In a developing country, the government has to take 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 led 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 malls, private hospitals, private schools, professional training, etc. This change is 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 the growth of this sector.
(vi) A large number of workers are engaged in services, such as small shopkeepers, repair persons, transporters, etc.
(vii) However, the entire sector has not grown. Large numbers of people engaged as construction workers, maid, peons, small shopkeepers, etc., do not find any change in their life.
Question. How can we create more employment in secondary and tertiary sectors in rural India?
Answer : (i) We can create more jobs in the secondary sector by promoting industries such as dal mills.
(ii) By promoting cottage and handicraft industries to employ the villagers. By establishing processing of vegetables and fruits units.
(iii) Government can invest in cold storages.
(iv) Services like transportation and communication must be promoted to generate employment.
(v) Construction of multi-purpose projects can create more employment.
Question. What is the significance of secondary sector in Indian economy? How does it help in the economic development of the country?
Answer : The significance of the secondary sector is that it transforms raw materials into commodities. It is the second largest sector of our country.
Role in economic development :
(i) Secondary sector uses mechanical power and modern use of labour.
(ii) It provides employment to a large number of people.
(iii) It also helps in creating self-sufficiency in the country. It produces goods for local and international consumers.
Question. Explain measures that can be adopted to remove disguised unemployment in the agriculture sector.
Answer : When more people are compelled to do a job which only few can do, then such a situation is termed as disguised unemployment.
(i) Loans should be provided to the small farmers by the government or banks to buy seeds or develop irrigation facilities, etc. to enable them to grow 2-3 crops in a year.
(ii) Transportation and storage facilities should be improved to provide employment opportunities. New dams and canals should be constructed to generate employment.
(iii) More irrigational facilities can be provided to grow two or three crops in a year.
(iv) By establishing processing units of agriculture production, more employment opportunities can be created.
(v) Technical and vocational training can reduce the unemployment of farmers.
Question. How can we create more employment opportunities in urban areas? Explain with examples.
Describe the various ways in which government can create employment opportunities for the people of India.
Answer : (i) The government can spend some money or banks can provide loans to construct wells, etc., which will reduce the dependency of farmers on rains, and they will be able to grow two crops a year.
(ii) Construction of dams and canals can lead to lot of generation of employment in agricultural sector itself.
(iii) If government invests money on transportation and storage of crops or makes better rural roads, it can provide productive employment not just to farmers but also to others who are in services like transport or trade.
(iv) If local banks give credits at reasonable rates to the small and marginal-farmers, they will be able to buy necessary inputs for their crops in time.
(v) Another way to solve this problem is to identify, promote and locate industries and services in the semi-rural areas where a large number of people may be employed.
Example, Many farmers grow arhar and chickpea, for them a dal-mill to procure and process these and sell in the cities; opening a cold storage will give an opportunity to the farmers to store their produce like potato, and onion and sell them at good price; villagers near forests can start with honey collection, etc.
(vi) To improve health standards, we need health centres, hospitals and for that doctors, nurses, workers.
(vii) Similarly to provide education to all children, we would need lot of schools which can also generate employment.
(viii) Tourism : Every state or region has the potential for increasing the income and employment for people in that area. This can also be done by promoting tourism or regional craft industry.
(ix) New services like IT are also creating jobs.
All these are the long-term projects but government also has certain short-term projects for people, such as: NREGA-2005.
Question. Describe the estimates of Planning Commission to create jobs in tourism and education?
Answer : Regarding jobs in Schools :
(i) Planning Commission (now known as NITI Aayog) estimates that nearly 20 lakh jobs can be created in the education sector alone.
(ii) For more children to attend school, more teachers and more infrastructures will be required.
Regarding jobs in Tourism :
(i) Planning Commission estimates that nearly 35 lakh jobs can be created in the tourism sector.
(ii) Regional crafts and cottage industry can also create jobs.
(iii) New services such as IT also are job generators.
Question. Define tertiary sector. Describe about the different kinds of people employed in this sector in India.
Answer : Tertiary Sector : It helps in the development of the primary and secondary sectors. They provide aid or support for the production process.
Different kinds of people employed in this sector because it provides lots of opportunity for job.
(i) On one end, there are a limited number of services that employ highly skilled and educated workers.
(ii) On the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transporters, etc.
Question. “Workers are not exploited in organised sector”. Do you agree with the statement? Explain reasons in support of your answer.
What is unorganized sector? Describe the working procedure of this sector.
Workers are exploited in an unorganised sector. Do you agree with this statement? Justify your answer with five relevant points.
Define the term ‘Unorganized Sector’. Mention any six disadvantages of working in this sector.
Answer : Unorganized Sector : Unorganized sector is a sector which has small and scattered units largely outside the control of the government.
Yes, workers are exploited in the unorganized sector. Reasons are as follows :
(i) There are no rules and regulations followed.
(ii) Jobs are low paid and often not regular.
(iii) No provision of overtime is there and no paid holidays or leave is given.
(iv) Employment is not secure. People can be asked to leave without reason.
(v) Some kind of work is seasonal in nature and temporary workers are employed. They become unemployed after the season is over.
(vi) No other facilities like provident fund, Gratuity or sick leave are given.
(vii) Working conditions are often poor. No allowances are given.
(viii) No medical benefit is given.
Question. What is GDP? Explain the process to calculate GDP.
Answer : (i) Gross Domestic Product or GDP is the value of all final goods and services produced within a country, during a particular year.
(ii) The sum of production in the three sectors gives us the GDP (primary + secondary + tertiary). The money values of goods and services should be added rather than adding up the actual numbers. The value of final goods alone should be added as the value of intermediate goods is already included in the value of final goods. This mammoth task of measuring GDP is undertaken by the Central Government Ministry.
This organisation collects information relating to the total volume of goods and services and their prices and then estimates the GDP.
Question. How far is it correct to say that several services which cannot be provided by private sector can be provided by the public sector? Explain.
“There are several things needed by the society as a whole.” In the light of this statement, explain as to who can provide them at a reasonable cost, the private or the public sector and why?
Identify any five activities where the government must spend for the welfare of the people and why?
Answer : Society needs many things as a whole which the private sector is not able to provide at a reasonable cost.
The reasons are as follows :
(i) Some of them need spending large sums of money which is beyond the capacity of the private sector.
(ii) The private sector charges are very high whereas the government will charge reasonably.
(iii) Without government’s encouragement and help, the private sector can’t enter into such services.
Areas where the government must spend for the welfare of the people are :
(i) Providing health and education facilities by building proper schools.
(ii) Providing proper food to tackle the problem of malnourishment.
(iii) Government also needs to pay attention to the aspects of human development such as safe drinking water, housing, and taking care of the poorest.
Question. Explain the meaning of disguised unemployment with the help of any two suitable examples.
Answer : Disguised unemployment: Disguised unemployment is a situation where the number of workers engaged in a job is much more than required. If some of them are withdrawn from the job, the total production will not fall. It means that marginal productivity of such workers is zero. For example, where the need is for 4 labourers and 7 labourers are working, it means 3 labourers are suffering from disguised unemployment or under-employment. In such a case, the production will not be affected even if the three extra labourers do not work.
(i) In rural India, agricultural field is suffering from this type of unemployment. All family members work on the agricultural field but all the work can be done only by one or two persons alone. Rest are just engaged. More than half of the workers in the country are working in primary sector mainly in agricultural activities producing only a quarter of GDP
(ii) In urban areas, workers like painters, plumbers, repair persons, cart drivers do not find work every day or for the whole day.
Question. “When a country develops, the contribution of primary sector declines and that of secondary and tertiary sector increases.” Analyse the statement.
Describe the historical changes that have taken place in the sectors of the economy in the developed countries.
Answer : (i) 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.
(ii) New methods of manufacturing were introduced, factories came up and started expanding.
(iii) The secondary sector gradually became the most important sector in total production and employment.
(iv) With the development of sectors 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.
(v) The service sector has become the most important in terms of total production and employment. This is the general pattern observed in developed countries.
Question. Explain the importance of the service sector.
Explain any five features of tertiary sector.
Answer : The main features of the tertiary sectors are :
(i) This sector helps in the development of the primary and secondary sectors.
(ii) The activities related to this sector do not produce key goods, but they provide aid or support for the production process.
(iii) It also provides essential services that may not directly help in the production of goods, such as the services of teachers, doctors, barbers, lawyers, etc.
(iv) In recent times, certain new services based on information technology etc. have become more important.
(v) The services which are included in the tertiary sectors are transport, storage, communication, banking, trade, etc.
Question. Describe any five provisions of ‘National Rural Employment Guarantee Act 2005’.
Answer : Provisions of NREGA 2005:
(i) 100 days assured employment every year to each rural household.
(ii) One-third of the proposed jobs to be reserved for women.
(iii) If an applicant is not employed within 15 days, he/she is entitled to daily unemployment allowance.
(iv) The governments have to establish Central Employment Guarantee Funds and State Employment Guarantee Funds for the implementation of the scheme.
(v) The scheme is to be extended to 600 districts.